Falcon construction underway and 3 houses closing

Falcon construction underway and 3 houses closing

FALCON UPDATE

The demo is complete and the downstairs walls have been framed out. Our electrician is installing wiring for outlets and lights this week. Plumbing and mechanical is about 85% complete. We visited and took some video for you (Curtis almost sprained an ankle walking through all that action, but he made it out OK):

Our Home Depot crew helped out with some sleek tile, lights and finishes. It is going to be a very modern home with a lot of light and clean lines and colors. I mean, take a look at the floorplans as well as some renderings put together by the dynamic duo at HD.

 

 

CLOSINGS

5th, Bullrush, and Caminito Agadir are all slated to close within the week.  We had to slay a few dragons in the past couple of weeks. An appraisal issue on Bullrush, resolved. A sewer issue on 5th, resolved. An air conditioning issue on Caminito Agadir, resolved. Buyers are happy now and all contingencies have been removed, so things are looking promising.

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Last minute mad dash to get Escondido & Scripps ranch ready to sale.

WARNING!!!!

Do not read this blog on Real Estate Flipping if you have been drinking the guru punch about Real Estate being easy.

You have been warned because if you think the above is true then I am about to pee in the guru punch bowl.

If you want to really know what it takes to succeed in Real Estate read ahead because this blog isn’t about blowing smoke up your you know what. It’s about what it takes to survive and succeed in today’s Real Estate world. And it’s not about easy get rich scams it’s about putting your nose to the grind and sacrificing today for a better future tomorrow.

So where do I begin?? How about right now….

I am finally relaxing (if writing a blog is relaxing) having a beer (Sierra Nevada), watching The Heartbreak Kid with Ben Stiller (which is hilarious) after spending a 20+ hour work weekend getting Property 37 (Bullrush Glen – Escondido) and Property 38 (Caminito Agadir – Scipps Ranch) ready for a virtual tour.

Originally, I wanted it done Monday (so I didn’t have to spend 20 hours rushing around on Saturday and Sunday) but the photographer could only do it Sunday unless I wanted to wait until Wednesday or Thursday which I didn’t. So we did what we had to do we got it done for the pictures on Sunday which meant a long weekend. So thank you to Rick Williams, and Gabhart Investments newest team member Nick Walsh. I didn’t want to lose a week of market time so I got off my fat butt and got it done with the help of a great team.

I don’t like to put properties in the MLS without excellent pictures so I got it done. I am kind of a perfectionist in that way.. Come to think of it maybe it’s OCD?? I’ll ask my wife she’s a pediatrician and I’m a big baby.

Do what others won’t do so you get what others can’t
I think I saw this on a toilet stall in a truck stop somewhere.

The lucky insomniac I am woke up Saturday at about 2 AM thinking of all the things I had to do that day. I tried to watch a boring documentary (BTW my wife has NO problem sleeping and does not enjoy me watching the TV at 2 am AT ALL!) which I hoped would bore me to sleep. Instead I just learned a whole lot of boring things so I decided to jump out of bed about 4 to get a crack-in…

After organizing my day, sending off a bunch of emails I was at Home Depot At 6:30 picking up some mirrors, paint for an accent wall and misc. items for the projects. I then went to Tar-shay (Target) at 8am when it opened to pick up items to stage the kitchens and baths at both places and then to Ikea which is a boat load of fun in itself (I think I would rather be tied to a chair and have someone torture me by scratching a chalk board with their nails rather than go to Ikea on a Saturday)

I felt I needed to do a light staging on these projects and was glad it did (pictures coming soon). It really made the places seem a lot nicer and I want to thank my beautiful bride Lisa for helping me Sunday morning to pick up the items that I forgot. For the record this is the first time her, and I have not gotten into a fight for her going to target buying stuff and Target has a 90 day return policy, so this is really staging on a budget…. (Is it bad to take some things back?)

In a perfect world, I like to get the property in front of as many agents as possible. I do this for two reasons. 1) to sell the property 2) to sell our company. When agents see that we are a REAL company and not just a late night informercial student they take notice and start calling us on deals. Remember your Real Estate business involves marketing yourself.

A couple really great ways of getting your property sold and your name out there is to participate in the agent caravan and pitch sessions.

On the agent caravan the local realtors have a certain day for each area of San Diego where they all caravan and go see the listings that have signed up for the caravan.

Why should I care you wonder??? Well grasshopper let me tell you. I want to get as many agents through my property as possible. And I want these agents to 1) bring buyers and 2) bring me more properties to buy.

So how do we get these agents to come to our properties you may ask??? Well sure we get on the broker caravan but its more than that. We offer incentives like

* an extra 1/2 % to any agents that register on the day of the open. (motivates their greed)
* Let them know the property is NOT on the MLS yet (we also call on agents to let them know) so they have time to preview it and let there buyers know BEFORE it hits the mls (creates a sense of urgency)
* Provide food. It’s amazing how many realtors will show up for a sandwich! (motivates their cheapness)
* We give out a $100 gift certificate to whomever comes closest to guessing the actual final selling price of the property. The agents need to put the dollar amount it will sell for on the back of a business card and drop it in a fish bowl we have on site. (motivates their greed and competitiveness). The reason I offer an incentive is if I were to just the agent how much do yo think this property would sell for many of the agents will put a lower number. On the other hand if there is a shot at winning a Benjamin they will gnaw their arm to win it. Think about this, if the agent MAY possibly have a buyer don’t you think they may want to put in as low a number as possible so if they happen to put in an offer I think it’s good? Yes they do, UNLESS they have the chance of winning a $100 because realtors are very competitive and will want to guess the most accurate price possible.

The technique of getting the Realtors to guess a final sales price really helps me dial in the listing price since these agents are usually the agents who work the area we are selling the properties.

Pitch Session – This is what I do for the agent pitch session which is really just a meeting of a bunch of agents in a particular area to announce their listing and announce there buyers.
What I do is I 1) pitch our properties for sale and give them our listing agents contact info and 2) (the real reason I am there) let them know that since I am selling a property, I need to replace it and please call me for a good deals. I mention that I will act as a principal on any transactions they bring me and sell it through them also.

Remember to market your properties and market your self…

So it’s 8:30 and watching a movie and writing a blog is harder than me jumping on one foot, rubbing my belly, patting my head and saying the alphabets backwards (I can’t do any of these things by themselves none the less together) so I am going to clock out… But next time I post I will update you how the Caravan goes and the pitch session goes and post some pics and movies.

Last thing if you like this blog please share this post to as many sites as your willing.. I don’t make any money on this thing (actually I probably lose money since I am not getting paid) but I want this thing to be a top real estate blog and the only way it will happen is if people share this site with other people. So please share if you like the information.

Now if you don’t like this site, complain to these sites….. http://tomtarrant.com/ or www.flippingcrazy.com or www.buildbankroll.com or http://flippingsmart.com/ ….

No seriously I am just jealous of these blogs above. If you want to see what good flipping blogs are check those out. These guys are actually smart unlike yours truly 😉

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Bullrush Glen Project 38 Update

Bullrush Glen Project 38 Update

This is the property we closed on in the beginning of July  in Escondido, CA.
This property is located in a gated community constructed in the 1970’s. Surprisingly, the property did not need many renovations to get it ready for resale.
The exterior of the property will be repainted as well as new plants and bark will be added to bring some color to a colorless property. Part of bringing color to any property is installing a new front door, which is what we did. In the backyard new sod was installed and a new deck was constructed.
Inside new tile, carpet, and paint was needed as well as a light renovation in the kitchen. The kitchen cabinets were painted a dark Ebony color as well as a new sink and granite counter top were installed. The existing fireplace is going to be refaced with new travertine tile and a new Ebony colored wood mantle.
By August 11 this property will be on the market.

Home depot has great deals on queen palms here in San Diego. These guys were $10 each and we mixed them in with some queens that were $25 and a little bigger.
If you have the budget and it is appropriate there palms for @ $100 are HUGE and can really make a statement.
Since this yard is so big I needed to buy more plants so tried not to spend to much on any one plant.

All the cabinets throughout were honey oak.
We sprayed them out with a color coat of lacquer which ended up being a much better finish than the new cabinets we have been buying from home depot and the cost for  the whole house (3 bathrooms, 1 bank of linen cabinets) was about a 1/4 of buying new and installing.
You need good painters to do this. Don’t leave it up to your handyman.

The deck was in such bad shape that I decided to demolish the whole thing and rebuild a bigger one in it’s place. This deck is about 450 square feet and sits off the dining room. It really connects the inside and outside together and will be a great place to BBQ and entertain.

Our tile buys getting ready to face the fireplace with travertine tile.
Cheap way to really update the place and almost the first thing you see when you walk in the front door.
I always try to have a few “show” pieces in the house. I always try to put myself in the shoes of the buyer.
When they walk through I want them to think in there head that they can’t wait to show these things off to their friends and family.
To the right here is the sod we installed on the side yard. This was all dirt.

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30 Day Property Flipping Challenge half way there

OK I am halfway through with a personal challenge of mine. Buy 3 properties by June 1st and since starting this blog post/newsletter it looks like I have my first acceptance 5/14 which we will close  and start construction 5/18 and try to put it back on the market within 2 weeks if everything goes according to plan (never does).

All of my hard work over the last couple weeks has really been paying off. I am getting calls each day from Realtors or Wholesalers who understand what I do to present with opportunities because they know if they bring me a deal I not only will buy through them I will sell through them. I have also been helping some agents who are new to working with investors to show them how to find deals that can be flipped in this ultra competitive market.

As a former Commercial Realtor who now focuses on Syndicating partnerships I am using the same marketing techniques that created  a successful business for me in that field by tweaking the business model towards building relationships with Agents or people looking to passively invest through our firm and making them my customers instead of buyers and sellers.

I know that the best deals usually come through agents and most times if it is a great deal they call a client who they can represent and I want to be that person. My business model involves buying as a principal through anyone who brings me the deal and selling it through them on the exit.

The skills I learned being a Commercial Realtor has been in large part the key to my success. As an agent who works with investors I was exposed to the business models that worked for buying properties. I don’t believe there is anyone who is better than an agent at finding deals because that’s all you do throughout your career. You are exposed to the best business models and can leverage that knowledge to become very wealthy.You look at deals and you represent buyers and sellers and you see what works and what doesn’t.

As a matter of fact I am using that marketing right now to let Realtors know I am a buyer and am looking for Real Estate.

I am continually being asked about “What is the best way to become an investor in real estate?” and my answer

Phase 1 – save up enough money for 6-12 months living expenses, go out and get your Real Estate license

Phase 2 – Work under a successful Realtor who’s focus is on the niche you are interested in owning one day.

Phase 3 – Work you ass off and find as many investors to find deals for and pay attention to the successful ones.

Phase 4 – Start finding investors that will allow you to put in some or all of your commission on the deals you find and ask to participate as much as possible even if you aren’t getting paid for that portion. This is an investment in yourself and like all good investments you will be rewarded heavily in the future.

Phase 5 – Build relationships with clients and earn there trust. These clients and your friends and family will most likely be your money source for your future deals.

Phase 6  – Work your but off to learn the business by working for successful investors finding them deals.

Phase 7 – Transition out of the brokerage business to focus full time on your investments if this is what you enjoy doing. This is the phase I am in but you may find out that being an investor is not always fun and may decide that you like being a Realtor instead.

If you work with investors

So if you are a Realtor or wholesaler give me a call if you find a great deal.

Here are a few reason why you may want to consider working together.

•    I need to buy 3 properties by June 1st
•    I make quick decisions and know what I want – Anything in San Diego $300,000 or less that we can re sell for a profit. I also understand 99% of the deals don’t work but I also know I am successfully finding ones that do work through realtors like yourself who know a particular market and a good deal when it hits the market.
•    I value your advice and feedback but I am not going to blame you if the numbers don’t work out the way you thought on the back end. I am a big boy and if I make a decision to buy it is because I believe in the numbers also. It doesn’t mean I don’t make mistakes it means that I have done enough of these deals that I know mistakes happen and its part of the business.
•    I have access to the MLS and the Sentry system. That means you never have to drive me around or do a bunch of homework for me. I am capable of doing it myself, the best use of your time is to find deals we can work on together and then find more.
•    Quick decisions, no financing contingencies, I can close as quick as needed. As an example to make a deal work this week I offered a 4 day escrow and waived my physical inspection upon acceptance.
•    My company has a general contractor’s license so we understand what’s needed and are capable of just about anything.
•    If I buy through you I sell through you
•    I am open to other possibilities but can’t make as quick of decisions if it is something new to me. On the other hand this is a fast changing market and I need to be open to other opportunities.

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Statistics on how people are flipping properties in southern california

Here are some slides that I was given permission to use from The Norris Group from the presentation that was put on this week.

I thought it was very interesting to see how there clients were successfully buying and flipping deals in Southern California.

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