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Friday Facts – Best Real Estate Investing Advice Ever Lightning Round Q&A

Learn this week’s Best Ever guest’s best ever books, real estate deals, ways to give back and biggest mistakes

 

 

Mark Allen from JF930: Recession-Proof? Why You MUST Diversify Your Assets

 

Best Ever BookNever Eat Alone by Keith Ferrazzi

 

Best Ever Deal Mark Has Done – Subject-to to flip

 

“I’d probably say the first deal that I did when I got to Dallas. I did a lot of direct mail marketing and got a seller that was interested in selling but the numbers didn’t work out. The only way I was able to work it out was to take the property subject-to the existing mortgage for $118,000.”

 

“I paid the seller $2,000, took over the mortgage at $118,000 balance, put $12,000 into the foundation and plumbing, and sold the home to the tenants 6 months later for $175,000. I guess I made nearly $50,000 with maybe $14,000 out of pocket, plus closing costs, so let’s say $16,000. Maybe wasn’t the highest net deal but I like the creative aspect.”

 

Best Ever Way Mark Likes to Give Back – Charity and T-shirts to the Homeless

 

“I used to host a charity series called Dance for Charity. We throw a big event, bring in a big electronic DJ and sell tickets and give 100% of the proceeds to a specific charity.”

 

“I’ve created We Buy Homes t-shirts, with your logo and your number and give those out to homeless people at like major intersections, under a bridge. Not only are you giving to the needy, but you’re getting your business out there.”

 

Biggest Mistake Mark Has Made So Far in Real Estate – Incorrect Comps for a Flip

 

“I think it was when I first started getting into flipping, it was like my first real flip here in Dallas, and the thing that I don’t like about residential real estate is it’s so subjective and I hated figuring out the values of homes because of that.”

 

“The first flip I ever did backed into a three-lane road and I knew that one block over, the homes would sell in the mid $400,000, but they were interior lots. This home that backed to the busy road ended up selling in the mid $300,000. I said ‘well hey this home is going to sell in the mid $400,000,’ so my numbers were all skewed. I ended up selling the home for the highest price per sq. ft. on that road that was backed to the busy road, but the $75,000 in profit that I originally thought didn’t happen. I ended up with like $600.”

 

“Always check for where things like busy roads, water towers, power lines, because those things are going to affect the value of the property.”

 

 

Neva Williamson from JF931: Being Fired, She LEARNED the REI Ropes QUICKLY!

 

Best Ever Book – Book of Proverbs in the Bible

 

Best Ever Way Neva Likes to Give Back – Real Estate Investing YouTube Channel

 

“Lately, what I’ve been doing, because … my email is over flooded, so what I started doing was I started a YouTube channel, “Time for Investing.” I’ve been really posting videos and answering questions and really helping people out, and now I get people commenting or emailing ‘hey I’ve been watching your videos and it helped me. I just closed on a deal.’ So that’s what I’ve been doing to really give back. Just to offer what I learned and how I wholesale and buy rental properties and things like that. I think that’s a great way for me to give back at this point.”

 

Biggest Mistake Neva Has Made so Far in Real Estate – Not Getting the Closing Documents Before Closing

 

“When you get your HUD-1 before closing on any house. Now I ask them if they can give me the HUD-1 or the closing documents the day before so I can really go through it because I’ve had times where they have calculated my wholesale fee and those types of things incorrectly, and then they wire incorrect amounts.”

 

“At the closing, what I’ve learned, the settlement companies, once they’ve wired those funds out, those funds are gone, so if they wire too much money to the seller of the property, you’re kind of stuck and you have to go to the seller to get your money back. You’re going to be at the mercy of them because now they sent them too much money.”

 

“The biggest mistake is not catching that those numbers are incorrect before the funds are wired. You really can’t trust the settlement company to make sure that those numbers are correct.”

 

 

Clayton Morris from JF932: FOX News Anchor Invests in Real Estate

 

Best Ever BookThe Four Spiritual Laws of Prosperity by Edwene Gaines

 

Best Ever Deal Clayton has Done – $43,000 Double-Close Wholesale Deal

 

“It was a wholesaling deal in New Jersey. It proves every point of real estate – systems work, follow-up works. I had done a mailing in New Jersey where I live, and I found a property in a very affluent neighborhood. These houses were being kind of torn down or built out from $400,000 and being sold for $900,000. And I managed to do a mailing, I got these people, stuck to my guns on price, I sent them a purchase agreement when no one else did, and a month or two months later they followed up with ‘Is your offer still good? We’re exhausted from going around in circles, we’ll take your offer.’”

 

“I got it, and it ended up being a wholesale deal. It ended being a $43,000 assignment. Or, actually, I double-closed that one. So a $43,000 double-close. That was a big moment for me. That was my second wholesale deal I ever did.”

 

Best Ever Way Clayton Likes to Give Back – 30 minute, Free Consulting Calls

 

“I’ll spend 30 minutes on the phone with investors, and they have no money — I don’t care, I want to help people take action. I’ve been blessed with a broadcasting career, so one of the ways that I like to give back is to just share as much as I can… Share everything, be as transparent, open as a book.”

 

“I’ll jump on the phone with people, talk for 30 minutes, they’ll tell me about their financial goals, they’re struggling with this, and I’ll kind of just help them over that hurdle. I sort of try to be a mentor to as many people as I can.”

 

“I try to go in inner cities to help with that financial education, because we’re not taught this stuff. We were never taught this is the way to build wealth. We’re taught, ‘Go get a job,’ and we we’re taught, ‘This is how you balance a checkbook,’ but we’re not talking about real wealth building in this country. So I try to give back in that way to the best of my ability anytime I’m asked. Any speech, going to a public library in the inner city – anything like that is what I love to do.”

 

Biggest Mistake Clayton Has Made so Far in Real Estate – Dragging Out a Wholesale Deal

 

“There’s been a bunch, but one sticking out to me is dragging out a deal for too long and making promises that I couldn’t keep to the seller. This would happen to be on a wholesaling deal. At the end of the day, I lost my deposit – I wasn’t going fight that, of course – and the dragging out of the deal, and thinking that at the last moment I could just bail on the contract.”

 

“People’s lives are involved in this, right? They’re planning on moving, they’re planning on packing up their stuff, and I thought for sure that I could sell this house; I thought for sure that I could buy this; I could do something with it. But it ended up being a disaster – [there was] a sewer condition with the property.”

 

“I thought for sure that this house would sell, [and that] we could do a great deal. It ended up dragging on and on. She’s packing up, ready to move to Pennsylvania, and I just have to tell her I can’t do it. It was just heartbreaking.”

 

“Now I pull the Band-Aid off real fast. Right away, as soon as I can. Not waiting that long, 40 days, before I have to make a decision like that.”

 

 

Andrew Holmes from JF933: Your FORMULA to Buy 5 Rentals in 2 Years and Payoff in 7!

 

Best Ever BookRich Dad Poor Dad

 

Best Ever Deal Andres has Done – Drive For Dollars

 

“Bought it for $12,000, and we keep it, and it’s worth over $150,000.”

 

“Actually I got while driving for dollars”

 

“I was driving around, I saw a really bad driveway, windows were all messed up; it looked like a house that clearly was distressed, so I called the owner and he said, “Well, it’s going to auction, and I want nothing to do with the property.” We approached the owner and we paid him $2,000, paid off the $10,000 mortgage and that was the end of the story.”

 

Best Ever Way Andrew Likes to Give Back – Shares Everything He Knows

 

“I think the best ever way I like to give back is share what we know, because the more that I share, the more openly information is shared, the more we get to grow.”

 

“A lot of times people hold this belief, ‘Why would you share so openly?’ I’ve always laughed, that every time I share, I get back so many more folds, because people give back in ways they don’t even know. The best way of learning is to teach others to do it.”

 

Biggest Mistake Andrew Has Made so Far in Real Estate – Greed

 

“Getting greedy and not trusting your gut instinct when it says no. It doesn’t matter how good it sounds, pass.”

 

Click here for a summary of Andrew’s Best Ever Advice: Formula to Buy 5 Rental Properties in 2 Years and Payoff in 7

 

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