JF1437: Here’s What You Can Do To Increase Equity In Any Property with Julia Nyman

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Julia started as a realtor in 2015. She is on track to sell over 100 homes in her first three years. Along with doing the normal listing agent duties, she helps sellers with some renovations that will help them get more money on the sale. This really helps residential sales, but also helps us as investors to get top dollar on our properties when we sell.

 

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TRANSCRIPTION

Joe Fairless: Best Ever listeners, how are you doing? Welcome to the best real estate investing advice ever show. I’m Joe Fairless, and this is the world’s longest-running daily real estate investing podcast. We only talk about the best advice ever, we don’t get into any of that fluffy stuff. With us today, Julia Nyman. How are you doing, Julia?

Julia Nyman: Hi, I am good. Thank you so much for having me. I am grateful to be here today.

Joe Fairless: Yeah, grateful that you’re on the show as well. A little bit about Julia – she is the CEO of Homes With Julia. She’s a listing and buyers specialist; she’s mostly focused on residential retail, but she also helps clients with remodeling projects to help increase the equity in their homes. Based in Baltimore, Maryland, and her website – HomesWithJulia.com. There’s also a link to that in the show notes page.

With that being said, Julia, can you give the Best Ever listeners a little bit more about your background and your current focus?

Julia Nyman: Yeah, absolutely. So I’m born and raised in the Baltimore Metro Area. I originally went to college in the health focus; I went into non-profit work pretty quickly, I realized that I loved the mission, not quite what my specific role was… I had a friend who knew a small residential-based property management company up in Hartford County, which is probably 30 minutes North of Baltimore City… And they were looking for a bookkeeper; they brought me on anyway, brought their bookkeeper back probably 2-3 weeks later, and kept me on as marketing and admin for them.

They never really trained me, so I kind of developed my own role as executive assistant to their main property manager, I networked for them, marketed for them, listed all the properties for rent, met all the tenants, signed all the leases… And really just realized after about a year of working with them with no real growth opportunity (because they were a small company) that everything I loved to do was really what a realtor does full-time.

So in September 2015 I broke out, gave my one month’s notice, got a part-time waitressing job to pay the bills a little bit, and jumped head first into real estate. It took me six months to sell my first house; year one I sold 23 homes, year two with my husband that I brought on and a buyer partner that we had, we sold closer to 35, and I’m on my track for about 45 myself this year, in year three.

It’s been an amazing journey, I am so grateful for each and every one of the clients who has trusted me with this, and we really try to specialize on client experience and customer service… And I know that you’re excited to talk about remodeling and how I help clients build their equity themselves… And I feel like part of that is really engulfed in the listing process, because when a home seller goes to list their property up for sale, there are usually a list of things that they can do that are fairly simple to build the equity back into their home, instead of selling for a lower price and therefore giving that equity away to the potential buyers who write offers and get that property.

So I’ve really developed a system for that and I’ve got some great contractor partners that I’ve been working with to help me carry that action plan out… And it’s been awesome.

Joe Fairless: Oh, you piqued my curiosity, that’s for sure… So what are some things on that list of things to do that we can easily – or not as an involved process – do to build equity in our home(s) prior to selling?

Julia Nyman: I’m more than happy to after this call give you a link to 1) my Facebook page, Home Transformation and Renovations, where I really post regularly in there and have a lot of interaction with people about some of those things… But also an article that I’ve written with my top 10 tips for home sellers out there, or renovators, to make sure that that checklist has really been completed.

But one of the major things, and the top couple of things that we focus on, honestly, are paint, deep cleaning, simple curb appeal, and maybe some slight updates to really kind of streamline the approach – maybe new cabinet fixtures, or a new faucet, or new paint to some cabinets… But we find when we go into homes, a lot of people have really (how do I say this…?) designed the property for their very specific taste…

Joe Fairless: Right…

Julia Nyman: …and when you list a property for sale, you wanna focus on reaching as many potential buyers as possible, which really means neutralizing and making everything more simple. So decluttering, depersonalizing, a deep, deep cleaning of everything, and freshening up some colors is really what we focus on (step 1). Then sometimes the kitchen is outdated, the bathrooms are outdated, maybe the house could use a power-washing, and those things will have a whole action plan list afterwards… Because we really find buyers are going to come into a property and double the cost of what those things would actually be when they visually see them and think about what they’re gonna have to spend to take care of it themselves.

So for sellers to do that ahead of time, they’re actually building in equity for themselves, instead of selling at a discounted rate because buyers feel like there’s so much more to do when they get in the home than there really is.

Joe Fairless: And they might not even get offers from those individuals who are thinking the “Pink walls with the purple backsplash is just too much trouble, so I’m not even gonna make an offer”, when in reality it’s pretty simple to fix, but they just don’t wanna deal with it.

Julia Nyman: Exactly, and that is really the masses. Some buyers wanna come in and build equity for themselves and get a great deal, but honestly, in my experience, when they actually look at what it’s gonna take to get that deal, they just wanna walk away and don’t wanna deal with it at all… So yeah, I find that that’s a great thing for my sellers, and I love when I can bring that full circle and really see the transformation that it makes in their experience.

Joe Fairless: Can you think of a specific example where you worked with a seller, and they were going to list it, or you, or they wanted to list it at X price, and then you did something and then you listed it at the other increased price, and you got it?

Julia Nyman: Yes, probably my favorite example — well, I feel  like the best example of this I will see transform and happen in real life probably in about a month or so, but in a past experience I had  a home in Catonsville, right outside of Baltimore City. This area has great schools and very unique, beautiful, historic homes in some of the blocks; I actually grew up there, so I was very passionate about this project…

I had a seller, and when I walked in, in my opinion, they needed fresh paint, the basement had water coming in, the bathrooms were from the ’90s, the roof was on the bridge of leaking… They had a lot of projects, so I basically laid it out on the table for them and I said, “Hey, buyers in this price range are going to be scared away from a lot of these things that they’re gonna feel that they need to do, that may be more expensive than how they actually are.”

So we talked about a 399k list price if they hadn’t done any of those projects and if they had just moved forward with the sale as is… But then we also talked about spending about 25k-30k to update the roof, do some bathroom updates, freshen the paint, refinish a little bit of the flooring, and… Water-proofing the basement was probably the biggest expense that they incurred… But we ended up listing right around 480k and getting a contract right around 475k, with two weeks on the market.

So I truly believe that we built in a lot of equity for them where they would have lost a lot by having buyers not actually see the full potential of that property.

Joe Fairless: Oh yeah, you made them $50,000.

Julia Nyman: It was awesome.

Joe Fairless: And then not that you’re thinking about this primarily, but when you do that, you also get an increased commission, so you make money along with them, which is great.

Julia Nyman: Yeah, we don’t talk about that all the time, but [unintelligible [00:08:47].05] a really hard time seeing what the market value is for their home (maybe they wanna list 20k-30k above) one of the most common conversations we have is exactly what you said – make more from selling your home for more. If I truly believed that you could get that value, why wouldn’t I want to list at that same price with you?

So our goals are ultimately the same, and it’s really awesome when we can make a true difference for people.

Joe Fairless: In the real estate world you started out working for a property management company… What are some lessons you learned there that you apply to what you do now?

Julia Nyman: That’s a great question… I feel like that real estate experience that I had that first year was really an internship on what this process looked like. I got to work second-hand with a lot of people who maybe wanted to sell and had to rent because of the market crash and the experience that they’re having with how much equity they have in their home, or how much they don’t have.

I learned a lot about exactly what I’ve said before – what fresh paint and a little bit of carpet and a cleaning can do, and I also learned how to really have those conversations with people… Because whether they’re looking to rent or sell, the conversations might be more severe and the stakes may be higher, but it’s relatively a similar process… So I got to kind of start on the ground level with some of the more basic processes and build up from there.

Joe Fairless: When you have those conversations, what are some pointers that you’ve picked up on?

Julia Nyman: With my clients and comparing them…?

Joe Fairless: Yeah.

Julia Nyman: So over the last couple of years we’ve primarily — yes, I’m the CEO of Homes With Julia LLC, but I work with [unintelligible [00:10:21].23] Real Estate in Columbia; we are a very small boutique brokerage, and I joined them back in December because we have a couple top agents and I have a goal of “How do we perfect client experience and the customer service experience in real estate?”

Some of the things that we do at the very beginning that I find that not many other people do or have the experience with is real preparation for what the process is going to look like from start to finish. On the buy side, before we meet with our clients we are sitting down for a full buyer consult and talking about the market in which they’re looking to buy a property, and what that process is going to look like, how much inspections are going to cost, how quickly that process will take, any road bumps that they may get in, so that once they ask those questions moving forward, they’re  more memory joggers and they’re more prepared and have less fear about the overall experience.

On the listing side we’re doing a very similar thing – we’re going through all the steps about what that process is going to look like, what is their action plan from the day that they say “Okay, I’m ready for pictures”, what is their move-out strategy… When sellers sell a property, they may have another property locked up, ready to move into, or they may have to purchase something else and be contingent on that sale. What does that process look like for them? Are they going to have to stay in a hotel overnight and move in quickly the next day? Are they going to be able to rent back? Are they gonna be able to stay with friends and family until they really find the house of their dreams? Or is it an investor, and  what does that process look like of inspections, and making sure that licensed contractors are doing the repairs while we’re under contract… I know that your podcast is everywhere; some of these things I’m mentioning are really specific to our Baltimore Metro market, but I’m sure a lot of these things also apply to the general area.

Joe Fairless: Have you always been proactive and methodical with your client, or has that been an evolution?

Julia Nyman: Great question. I was really lucky to start my career where I did, with Keller Williams and with the mentors that I had. I felt that I got a lot of education on some of the ways that I can really add value to my clients’ lives, so I feel that some of it  really started there. I had a couple awesome mentors that showed me what they do, and I kind of perfected my own system as such… But some of it is just — I’ve been in customer service since I started working when I was 13-14 years old in the restaurant business, so I’ve always had a customer service background… And like “Okay, this is a problem that we face”, and talking less about the problem, but more of what is the solution to that problem and how can we avoid that problem in the future.

So everything is just building and growing and making sure that we’re learning from our experiences.

Joe Fairless: Earlier you mentioned the list of things to do to build equity in your home… What are some things that people do unnecessarily that does not build equity in their home?

Julia Nyman: Great question. Probably the biggest thing that I find is that people start making updates to their home and getting it ready in the way that they see fit, before having a conversation with a local real estate professional that knows the specific market and what they can get for their home.

So I’ve walked into some properties when a client has already felt that they’ve completed that list, and they’ve spent an extra $30,000 that I will never be able to get back for them because they spent too much money and over-updated their home for the current and the current value of a specific neighborhood.

So that’s probably the hardest thing I come across, because there’s honestly no way of coming back from that. They’ve already spent the money, they already have the perception that that’s the value, and it’s a very hard conversation that we have to have about the real market and how things are selling in their specific area.

My recommendation would be have a professional out before you make those executive decisions.

Joe Fairless: And when you take a look at the most challenging aspect of your job, what is it?

Julia Nyman: What a loaded question, Joe…

Joe Fairless: [laughs] I like loaded questions, that way you can take whatever direction is top of mind.

Julia Nyman: So I am a perfectionist at heart; I love what I do and I always wanna make sure that everything is absolutely perfect from start to finish… So I think the hardest part of my job is not being in control of the entire process or knowing what is coming down the pipeline in reference to the other portion of a sale.

When you’re working with a seller, you can prepare them all day long for the process and what’s gonna happen, but you have no idea what is going to be important to that specific buyer who’s gonna make an offer on that property, the buyer’s agent on the other side, the title company… So a lot of the issues that come up are really just situational, and making sure everyone is on the same page. That’s probably one of the most difficult things I deal with – encountering the problems and the situations that come up, and getting everyone on the same page moving forward.

Joe Fairless: What’s a way that you now do that to the best of your ability?

Julia Nyman: The reason that this is one of the biggest problems is because — besides preparing and learning from the experiences and just growing as a professional and having more experiences to help you if those ever come up again, I feel like in every single real estate transaction there’s something new that comes up. There’s an easement agreement between a neighbor that has never been created, or an estate that blocks you from getting to that easement agreement, or a basement that floods a couple days before the settlement, and the parties involved want it taken care of one way, where the other parties involved want it taken care of another way… So some of it is just the nature of the beast, and one of the reasons that I feel that the Zillows and the Redfins out there who wanna take this process completely digitally will have a really hard time doing that, because it’s a living, breathing transaction where you need real people involved, who understand that specific market there and how to work with people.

Joe Fairless: Based on your experience, what’s your best advice ever for real estate investors?

Julia Nyman: To prepare as much as you can and really have mentors going in that you can go to when you have questions. We just purchased our first two investment properties last year, renovated them and refinanced them, we placed tenants… We’re in the process of actually selling one of them, but if we didn’t prepare in the ways that we did or have the connections that we had it would have been a much more difficult experience.

For example, I always recommend, even if you’re gonna use hard money and find money somewhere else, it’s great to have some money built up for that investment to start out with, because you’ll need some of your own cash in the transaction, or issues come up…

In the Baltimore Metro Area there are some great Facebook groups and online groups that meet regularly, with education and things like that… So we have the Baltimore Real Estate Investors Network here, and people are posting daily, with deals, or solutions to problems, or problems that they’re facing, asking questions… And my husband has really been taking the front of that for us, and he has learned a lot from that page.

Joe Fairless: We’re gonna do a lightning round. Are you ready for the Best Ever Lightning Round?

Julia Nyman: Oh man, I hope so…

Joe Fairless: [laughs] I’m sure you are! First though, a quick word from our Best Ever partners.

Break: [[00:17:54].07] to [[00:18:54].10]

Joe Fairless: Okay, best ever book you’ve most recently read?

Julia Nyman: You’re a Badass.

Joe Fairless: Well, thank you for that — no,  what did you get out of that book?

Julia Nyman: I love that book because it’s all about motivation and your mindset in life. I find that mindset and the way that you carry yourself really depicts your reality, no matter what happens to you and what comes down the pipeline… So I’ve found that book to be extremely useful in just starting each day on the right track.

Joe Fairless: Best ever transaction you’ve worked on?

Julia Nyman: Honestly, I’m probably going to say my personal real estate transaction. Anyone who knows me or this situation that we are in would probably open their eyes wide on that one, because it’s been the most difficult one of my life, but it’s also been the most educational and eye-opening experiences of my life.

I’ve learned a lot about the type of people out there, I’ve learned a lot about how important it is to have representation even if you are a professional in the industry, and how emotional that experience can be and how much that can cloud judgment when you’re in it yourself instead of working with a client.

Joe Fairless: What’s a mistake you’ve made on a transaction?

Julia Nyman: Representing myself in my personal real estate transaction this past year.

Joe Fairless: What happened with that transaction? Just high-level.

Julia Nyman: High-level… When you have a big emotional stake in a purchase or a sale or anything, there can be a lot of things that will cloud your judgment and say “Oh, I can just deal with that later” or “Oh, that’s not a big deal” when you would really be fighting to death to get something taken care of for a client of yours… Just like you don’t diagnose yourself when you have an illness, or you don’t represent yourself when you go to court; you hire an attorney.

In real estate I think it’s very important to hire a professional. We also have a pact in my office that we won’t represent ourselves, or we have the best 2 out of 3 rule… There are a couple professionals and I, and we make sure that everyone is one the same page about decisions, so that everyone has their say and can help each other make the best ones possible.

Joe Fairless: Best ever way you like to give back?

Julia Nyman: We built a system for giving back at our brokerage this past year, and what we did was we created a system where we have five non-profits that we work with on an annual basis, and we take a portion of our proceeds from every transaction and donate it to one of those organizations, and we let our clients choose who on that specific transaction that they’re working with.

So it’s a way to involve our clients in our own system for giving back, and everyone has really loved it.

Joe Fairless: Best ever way the Best Ever listeners can get in touch with you?

Julia Nyman: They can contact me on Facebook, or Instagram, or shoot me an e-mail at info@homeswithjulia.com.

Joe Fairless: And what’s the title of the article on the list of things to build equity in a home?

Julia Nyman: I will have to find that for you. I can shoot you an e-mail after here… I think  “Top 10 ways to get your home list ready” was the rough title of it, but I will e-mail that for you for your records.

Joe Fairless: Alright, we’ll put that link in the show notes page; Grant on our team will do that. Julia, thank you so much for being on the show and sharing your insight into how you help your clients get more equity in their home prior to sale, doing some relatively inexpensive things… But ultimately, who cares how much they cost, as long as we focus on the bottom line ROI? That’s really the case study that you mentioned earlier, the 399k list price, and then they did some roof, bathroom and refinishing the floor, and then basement water-proofing – all of it fairly light, with the exception of the basement water-proofing… Put in about $20,000, so they went from basically 400k to 420k (they put in 20k more), but then they got 475k under contract… A really cool case study.

Some things that you mentioned that we can do to build equity in our home – paint, deep cleaning, simple curb appeal, maybe some slight updates, declutter and depersonalize it… Those are kind of the two themes.

Thanks again for being on the show. I hope you have a best ever day, and we’ll talk to you soon.

Julia Nyman: Thank you so much for having me, and I will talk to you soon, Joe.

JF1309: Get Out Of Student Loan Debt Through Real Estate Investing with Brentin Hess

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Brentin was able to pay off all his student loan debt with his investments in real estate. It didn’t come easy though, he worked hard to complete flips, and purchase some buy and hold properties as well. To hear how he got started from scratch and is now moving forward at a fast pace, be sure to tune in to this episode! If you enjoyed today’s episode remember to subscribe in iTunes and leave us a review!

 

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Brentin Hess Real Estate Background:

– He flipped his way out of college debt. He has done 16 flips over 3 years

– He has 13 rental units with a partner

-Certified Keller Williams Instructor

– Served as an Accounting and Finance Analyst for the Department of Defense for 5 years

– Is an instructor and Board of Directors Member for the non-profit, Keller Williams Kids Can

– Based in Baltimore, Maryland

– Say hi to him at: www.brentinhess.com

– Best Ever Book: Millionaire Real Estate Investor


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TRANSCRIPTION

Joe Fairless: Best Ever listeners, how are you doing? Welcome to the best real estate investing advice ever show. I’m Joe Fairless, and this is the world’s longest-running daily real estate investing podcast. We only talk about the best advice ever, we don’t get into any of that fluff. With us today, Brentin Hess. How are you doing, Brentin?

Brentin Hess: I’m doing great, how are you?

Joe Fairless: I’m doing great, nice to have you on the show. A little bit more about Brentin – he has flipped his way out of college; that was the subject for the Bigger Pockets interview that Brentin did. We’re gonna talk about not necessarily his way out of debt – he flipped his way out of college debt – but rather how he has evolved his business and how he brought on a partner to have now a 13 rental unit portfolio.

He’s done 16 flips in three years, and he’s also a certified Keller Williams instructor. Based in Baltimore, Maryland, one of my top five favorite cities to visit in the U.S. With that being said, Brentin, do you wanna give the Best Ever listeners a little bit more about your background and your current focus?

Brentin Hess: Sure. You nailed it. I am Brentin Hess, 24 years old, from Baltimore, Maryland. I got my real estate license at 19 on winter break of college; I didn’t do anything with it the first couple years, and then when I was 21, I met a mentor and he had a lot of money and not a lot of time, and I had all the time in the world, and in fact, I was at negative dollars, I was in student debt.

So we came up with this idea of “Why don’t we join forces and see what it’s like in the real estate investing world?” I was attracted to that opportunity, we came across a flip, and at 21 flipped that first house, and that’s where a lot of the stories come into play; it’s always that first flip.

From there, I’ve since been through a couple partnerships. Now I’m flipping solo, and like you mentioned, I’ve done 16 and counting. And then for the rental side, this year I’ve set a goal to get into rentals, and through various scenarios, I now own 13 rental units with a partner. And with all this, somewhere in there, in the early stages, I did leave my full-time salary job, to do this full-time.

Joe Fairless: Well, congratulations on that. How old are you?

Brentin Hess: Thanks. I am 24 years old.

Joe Fairless: 24 years old. When did you leave your job?

Brentin Hess: I left my job as soon as I graduated college, so right around twenty two and a half years old, so about a year and a half ago.

Joe Fairless: Okay, and how did you support yourself when you left your full-time job?

Brentin Hess: I was flipping for about the last year and some change of college, and it was with that money I was able to cash out to fund the first many months of no income, because the pipeline wasn’t that hot. I had one going on at the time when I left.

Then I did that to also pay down the college debt. So that lump sum of money – I had 34k in college debt, I paid that off, and then had some runway thereafter.

Joe Fairless: How did you meet the mentor?

Brentin Hess: Full disclosure – I have many, and I’m very grateful for that. The first one was – he’s a realtor (his name is Stew) in our office, and he had been doing a great job saving money, and he had rental properties, and then him and I decided to flip.

Joe Fairless: Okay, you were already a real estate agent, and then someone in that office is who you met, and you two connected, right?

Brentin Hess: Right. It’s amazing, the people inside this industry. Once you get your feet wet, just the people as far as — I mean, I raise capital from people in the industry, now looking backwards, and partnered with others, and gotten deals with others… It’s just a great industry of entrepreneurs.

Joe Fairless: Okay. You met your first mentor through being an agent, and that is at Keller Williams, I imagine…?

Brentin Hess: Yeah, my parents opened this brokerage 12 years ago, so I often joke that I had KW [unintelligible [00:06:00].22]

Joe Fairless: Right. [laughs] Well, you might actually have had that; that might be a thing, I don’t know. So that’s how you [unintelligible [00:06:08].06] then you flipped a house, it went well, and then you flipped other homes. But you said you’ve been through a couple partnerships – can you elaborate on that?

Brentin Hess: Sure. All have ended well, and they stared with great intentions. It’s one of those things where there comes a point where the vision might not align, or the values… To be a little bit more concrete, it’s simply that I had different goals. I wanted to get out of the exclusive partnership, because if I found myself finding the deals, then I was able to the figure out how to fund the deals. At that point I was like “Okay, we have to figure out if this is truly a win/win or not”, and I still have a great relationship with everybody, thankfully. Nonsolo and nonexclusive.

Joe Fairless: Okay. At the beginning you were more 50/50, because you were each bringing something, but then as you evolved as a real estate investor, you were able to bring the other aspects, therefore it didn’t make as much sense for you to continue the existing partnership.

Brentin Hess: Right. And those conversations made sense in that aspect… Going into it upfront and saying, “Hey, I’m here to learn, and there might come a time where you know enough and you have the drive to wanna do it on your own”, and that’s all it was. It wasn’t too big of a surprise, but I was 21 when I got started with no experience and no money, and I’m thankful for that partnership, very much so.

Joe Fairless: You said in 2017 your goal was to buy property and own it, and you said that you’ve done that now, you have 13 units through “various scenarios”, so please educate us on what are those various scenarios.

Brentin Hess: Sure. My business partner [unintelligible [00:07:56].18] we saw a three-unit on the MLS, zero days on market, and he was showing me how to truly underwrite these multifamily deals, having some himself… And we went out and we went to the property to view it; at that time, the listing agent was away, and we met the owner there. While with the owner, we were talking to him about why he’s looking to sell, and his future plans, and he mentioned in there, which then would be his motivation – he wanted to sell all his properties in Baltimore and move to Florida. He wanted to get rid of all his headaches. That was like that time where we asked the question of “Why are you looking to sell?” and “Do you have any other properties?” It led to that, and then from there we said “Why don’t we just make a deal where we buy your whole portfolio? What does that look like?”

So it went from a three-unit on the market to a whole 11-unit deal. It was a portfolio deal, three 3-units, two single-family… And I joke that the other eight units were technically off-market at that point. So I know there are a lot of conversations about “Deals are hard to find right now on the market.” Well, a simple question of “Does the owner have any other properties that he’d be willing to sell?” – that question itself is a lead gen tactic for off-market deals.

Joe Fairless: Oh, absolutely. That’s a very simple, but powerful question that should be asked in every transaction, that could lead to some larger stuff. You asked that question, he said in this case “Yes.” Then what do you do?

Brentin Hess: That’s a good question. At that moment, we realized that we were getting ourselves into a much higher price point than we imagined.

Joe Fairless: [laughs] That’s what I was alluding to, yes.

Brentin Hess: Yeah, so the situation pushed us into raising capital, and I was doing it on a smaller scale, for like bridge loans for flips, and it was at the time — this portfolio we bought for $423,000. We financed it interest-only with a local community bank, for six months, with the intent of once we renovate the 11 units – they were all vacant, so we place our tenants… When we get it to the certain debt service coverage the bank needed (one and a quarter), we were able to then take their six-month interest-only loan and refinance that, and they would just hold that note with their terms.

So we had to come up with 25% down of that 423k, and then we also needed our closing costs and whatnot. So we went out and raised money from friends – no family this time, or actually any of the times – and we… Now at this point I started building this muscle that I now am continuously working on.

Joe Fairless: Let’s talk about that deal… How did you structure it with your investors?

Brentin Hess: Sure. Effectively, it’s interest-only, annualized, there’s no equity; because of the relationships with the investors and the conversations had, I cannot disclose the interest rate, but to get an idea, it was in that 15%-20%. It’s supply and demand, I suppose, where now money becomes more cheaper when you build the bench and the pipeline… And it was a great learning experience. We raised that money, and now we refinanced it. The bank has the note, we had zero dollars of our money in the deal from the very beginning, and we were able to refinance and pay all of our investors back. That was seven months later.

Joe Fairless: That’s outstanding.

Brentin Hess: Thank you. In the midst of all that, we came across another two units, we bought that… So we have 13 units, no money in the deal.

Joe Fairless: With your own money, or you just raised more money for those two units?

Brentin Hess: Yeah, raised more money. We lumped it into the portfolio loan. I guess long story show now, with the valuations, the 13 units are right around $860,000. We have a note for 75% of that, and we don’t have any money in the deals.

Joe Fairless: Wow, 860k, a note for 75% and no money in at the end of the seven or so months, you said?

Brentin Hess: Correct, yeah. That’s a $645,000 note. The one thing that I’m extremely grateful for is that relationship with the portfolio lender, given my little track record that I shared, I had just graduated college, left a salary position, and my business partner is in real estate sales and he does investing, too… We both don’t look amazing on paper, especially not for a note of this size, and it was the portfolio lender that I had been working with him through my flips, and that track record plus a couple meetings, plus doing everything we possibly could… We in fact brought on a signer to co-sign with us on the purchase side, and then once it was an income-producing portfolio on the refinance, we got one of my friends who has a W-2 job – we refinanced him off the loan. So now it’s just us two on the loan. We had to get kind of creative.

Joe Fairless: What compensation, if any, did the co-signer have originally?

Brentin Hess: That’s a great question. We paid him $2,000 to co-sign on this loan, and we had an outside agreement that we put together and drafted up, so we had that signed in addition to him being on the loan, so that he was even further protected, for whatever that’s worth.

Joe Fairless: Got it. Some sort of personal guarantee if something were to happen. I’m with you. What did you all do to this portfolio that increased the value from 423k – assuming that’s what the value was at the time – to 860k?

Brentin Hess: We renovated the units… They were all delivered vacant, so we did all the renovations, and we placed all the tenants. We still have one commercial space — they’re all residential spaces, and one is a commercial unit. We’re working on it right now getting the commercial unit rented; all the other units are rented right now, and they are income-producing.

Joe Fairless: Wow, I missed that part, if you said it earlier; I didn’t write it on my notes as you were talking… They were all vacant.

Brentin Hess: Yeah, they were all vacant, which… One may make a case for how that was helpful…

Joe Fairless: Yeah, yeah, it could be better…

Brentin Hess: Looking back on it, it probably was… If you wanted to get in and get out and get this thing stabilized as quick as possible. The concern is the bank doesn’t per se love to give you a note with a non-income-producing property that’s not in great shape.

Joe Fairless: Yes, that is a concern. What questions did the portfolio lender ask you during those couple meetings, and what were your responses?

Brentin Hess: A lot of it was track record. I actually go back to when I first met him… Because we didn’t have the financials so much, so it was a lot about “Okay, what is your focus and what are your income goals?” and also it was like “What have you done in this space? How do I know that you’ve been able to renovate properties and you have your systems in place etc.?”

So going back when I met this portfolio lender, I was cold-calling them to get allowed a credit at a bank for flipping with my first partner (it was actually a partnership), and inside of that process I came across this guy. When I met him, I brought him a sandwich… Many have heard me tell this story – when I brought him a sandwich, apparently that one sandwich made us memorable, to the point where they were kind of closing their doors on giving out these lines of credit… In fact, he remembered us because of the sandwich, brought us back in… So now every time I meet with him, I bring him a sandwich. [laughter] Now we’re at the point where we go out to dinner, and just that relationship has been developed over time… And it was that simple, small, little thing, like “What can you do to just kind of stand out from the pack of this very saturated real estate investing industry?” That was one thing that I wasn’t truly doing intentionally, I just wanted to bring the guy a sandwich, because I would enjoy that, if somebody brought me a sandwich.

Joe Fairless: I love sandwiches, too. You renovated 100% of the units and placed the tenants… What was a major challenge during that process, and how did you overcome it?

Brentin Hess: Oh yeah, definitely tenant placement. We completely underestimated how quickly we can get these things renter. I was like, “Okay, well when they’re rent-ready, we’ll do everything we can to get that marketed and get tenants in there.” Well, what I realized was as some of them were ready, others were still being renovated, and with the time that it was taking to focus on the renovations and the loan and everything else, the bookkeeping etc., I decided to leverage out the tenant placement to people who have vetted tenants in my market and they know the programs.

So I would say eight of our tenants or nine are program tenants, so they’re subsidized, Section 8 and other programs… And all of this was through the relationships with tenant placement professionals. We pay somebody first month’s rent and they find the tenant. One of the greatest pieces of advice that I’ve received in this process was to make sure that it wasn’t a non-exclusive agreement. Therefore, at one point I had ten different tenant placement professionals marketing and lead generating the place, so the tenants eventually — it shakes out the one or two really good ones that you’re working with, and then thankfully they’ve placed them. But that in itself was a many months process.

Joe Fairless: Based on your experience, what is your best real estate investing advice ever?

Brentin Hess: My best real estate investing advice ever is consistency. One of the things that I had mentioned was that I’ve gone through many gyrations of sending out mailers and placing signs, and just the lack of consistency in those actions – I would have been just as well off if I took all my money and walked up to a trash can and dumped it in there.

Joe Fairless: What do you do now consistently from a marketing or lead gen or whatever standpoint?

Brentin Hess: I commit to mailing at least 12 mailers. I do split-testing, so now I do 12 mailers in six months (every other week), or I’ll do once a month for 12 months. Regardless, I commit to that; I’ll pay three months in advance every single time, and that’s just my way of not looking back, like “I already paid for it. It’s gonna go out.”

Joe Fairless: You mail how many a month?

Brentin Hess: Total number? Oh, I was saying that what I’ll do is every lead in my mailer list, I’ll make sure that I hit them 12 times, whether it’s 12 times  in 6 months, or I hit them once a month for 12 months.

Joe Fairless: Oh, okay, I understand now. I was like, “12? You could ramp up your game a little bit.” Okay, I’m with you…

Brentin Hess: Yeah, I’m only mailing a few thousand.

Joe Fairless: Yeah, every lead that comes in, you contact them in some way 12 times.

Brentin Hess: Correct, yeah.

Joe Fairless: Are you ready for the Best Ever Lightning Round?

Brentin Hess: I’m ready.

Joe Fairless: Alright. First though, let’s have a word from our Best Ever partners.

Break: [[00:18:39].17] to [[00:19:08].01]

Joe Fairless: Best ever book you’ve read?

Brentin Hess: Best ever book I’ve read is Millionaire Real Estate Investor, by Gary Keller.

Joe Fairless: It’s a great book. I haven’t read that book, I’ve read Millionaire Real Estate Agent, and that is a great book, even though I’m not an agent; it inspired me to hire an assistant as your first hire, and that helped me grow my company. I should read that other one, Millionaire Real Estate Investor.

Best ever deal you’ve done?

Brentin Hess: It truly was this 11-unit I went through, simply because it jump-started that track record, the confidence and all the building a rental portfolio, which is ultimately the end game. I’m really grateful for that. And then for a flip, I did make 63k with my partnership on the flip.

Joe Fairless: A mistake on a transaction that you haven’t mentioned already?

Brentin Hess: A mistake on a transaction I haven’t mentioned already… On a flip itself, I was the one finding the subcontractors, managing the subcontractors, and with underestimating the renovations budget, and I was spending a ton of time with managing the subcontractors to where I calculated it and I only made 10k in a flip, and I spent about 100 hours in the deal… So what I didn’t realize at the time was I was essentially working for $10/hour.

Joe Fairless: Best ever way you like to give back?

Brentin Hess: First and foremost, I am a proud uncle of two. My niece and nephew are my world; both [unintelligible [00:20:29].11] have fought for their lives, so every minute I can spend with them is a contribution minute that I very much cherish. I also teach for a non-profit Keller Williams (KWKC) with one of your former guests, John Newman. I also run a Facebook group – RECN Stories; that’s simply where we just document entrepreneurs’ lives, and there’s no monetary means tied to it, just giving back.

Joe Fairless: What’s the best way the Best Ever listeners can get in touch with you?

Brentin Hess: Reach out to me on Facebook or Instagram, send me a message. I will respond to everybody; it might not be exactly that minute, but I’ll get around to it. It’s just my first name and last name, Brentin Hess.

Joe Fairless: Well, thank you for being on the show. This truly is a story of resourcefulness, I think that’s what it boils down to. You’re given an inch and you take a mile, in a good way; it seems like you’re constantly connecting with others, growing, contributing, and ultimately it leads to deals like this portfolio, where you originally wanted a 3-unit, and that grew to 11, and here comes a couple other properties along the way, with that portfolio.

The lessons learned, I really appreciate you sharing, from how to get the portfolio lender on board, to bringing someone in to co-sign with you who has a W-2 job, how you structured it with investors, you paid a premium, but at the same time you cashed them out in a relatively short period, and now you own the property with your partner. Some would say that’s a much more desirable structure from your standpoint than if you gave them equity and now they’re long-term partners with you. So there’s tons of ways to structure it, and I’m glad you talked us through this, as well as your lessons learned.

Thanks for being on the show, I’m really grateful. I hope you have a best ever day, and we’ll talk to you soon.

Brentin Hess: Thanks, I appreciate it. Talk soon.

Joseph England and Joe Fairless

JF1199: Creating Success From The Start by Utilizing an Experienced Mentor with Joseph England

Listen to the Episode Below (27:34)
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Joseph is an active duty service member, and active investor. He found someone who was having success house flipping, and use him as a mentor to help him get his feet off the ground. Now Joseph is on his own and still doing a great job with his investing. If you enjoyed today’s episode remember to subscribe in iTunes and leave us a review!

 

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Joseph England Background:

– Active Real Estate Investor
– He is the property manager for all his properties and accomplished all of this while maintaining a full time position with the US Military and deploying overseas.
– Purchased first investment property in Baltimore in June of 2015
– Now, he’s done over 20 deals, 16 buy and hold properties and four rehabs in various stages
– Specialize in rehabbing very distressed properties (rentals and flips).
– Based in Baltimore, Maryland
– Say hi to him at jde@vikingpropertysolutions.net
– Best Ever Book: 10x Rule

 


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TRANSCRIPTION

Joe Fairless: Best Ever listeners, how are you doing? Welcome to the best real estate investing advice ever show. I’m Joe Fairless, and this is the world’s longest-running daily real estate investing podcast. We only talk about the best advice ever, we don’t get into any fluff.

With us today, Joe England. How are you doing, Joe?

Joe England: I’m doing great. Great to be here.

Joe Fairless: Yeah, nice to have you on the show. First off, thank you for your service; I know you are active in the army, so I appreciate everything that you and your colleagues do for our country.

Joe England: I appreciate that.

Joe Fairless: And then in addition, and more relevant to our podcast, you are an active real estate investor, and he has been a property manager for all of his properties, and accomplished this while maintaining his full-time position in the army and deploying overseas. He purchased his first investment property in Baltimore in June 2015, and now he’s done over 20 deals – 16 buy and hold properties, four rehabs in various stages. He specializes in rehabbing very distressed properties – I’m looking forward to hearing some of this stories – and he’s based in Baltimore.

With that being said, do you wanna give the Best Ever listeners a little bit more about your background and your current focus?

Joe England: So I started out buying three rental properties. One needed about 15k worth of work, but I did it myself… I’ve had a little bit of background as a carpenter as an apprentice when I was in college, and a whole lot of YouTube videos went into that project.

The second house was actually a turnkey that we got for a pretty decent of a price; I think I bought it for 100k, and then it rents for $1,500.

Joe Fairless: Wow.

Joe England: And then the third one I actually found on Craigslist, and it was my first venture into the lower income neighborhoods in Baltimore, and it was already rehabbed, so this is technically a turnkey… At $35,000. That one rents for one thousand a month.

Joe Fairless: My eyeballs just went out of their socket with that… Holy cow!

Joe England: Yeah. That specific area actually, I sort of lucked out because some of these areas — it’s really block to block… So we found this really diamond in the rough, if you will. I found this house [unintelligible [00:04:29].09] but the whole area, probably a good five or six-block radius, just really quiet, really nice, in kind of one of not the greatest parts of town… So when other houses started coming up in that area, I started buying more of them; I bought a couple of them for 90k. Between purchase and rehab, I was averaging between 30k and 40k with these houses, and almost all of them rent for anywhere between $900 to — we actually have one that rents for $1,250 just one block away.

Joe Fairless: Those are incredible cash-on-cash returns, on the all-in 30k, renting between $900 and $1,250… I wanna talk about that, but first I wanna take a step back. You said you started out buying three properties – was that at once?

Joe England: They were within a two-month process. So me with the partner that I had, who I actually initially started with, I had recently re-enlisted, I had a bunch of money, and I knew what I wanted to do with it, so we did conventional loans on the first two, the typical 20%, they were in my name, and then what we had left was enough to buy the $35,000 house just pretty much I had the cash… Minus some emergency reserves that I set aside, I was pretty much out of cash at that point.

Then that was the summer of 2015, and then right around January – or probably the month before – I decided that I wanted to get into rehabs… One house I did do the rehab, but I did it myself; obviously, I didn’t wanna do that anymore. I wanted to hire contractors, and then I had a mentor who was a big house flipper, and kind of used him as my mentor, and then he helped me along. At this point he was living here, but he was also in the army and he had to move out of state… So he helped me in a lot of different ways, helping me out with some of his private investors, but I purchased my first rental rehab in January of 2016.

From there, I went on to do over 20 properties in 2016. That very first house was sort of the catalyst that has turned into what my business is now, which is I specialize in rental rehabs, with of course the occasional flip sprinkled in there.

Joe Fairless: And when you do the rehabs on these rentals, are they for your own portfolio, or are you looking to sell some and then use that money to buy stuff for your own portfolio?

Joe England: The rental rehabs – the goal is for my own portfolio. I have actually recently started looking into selling a few of them, sort of doing a little bit of a turnkey business, because I know that there are investors out there who are looking for a rental that’s already done, it’s got a tenant in and it’s already got property management in it… I’m setting up kind of like — that is sort of like a new wing of my operations, but for the most part they are all for my own portfolio.

Joe Fairless: Okay. The mentor who is in the army and was a house flipper and helped you learn the ropes on the rehabs… I’m assuming – but I wanna verify this – that you met him by just being in the army and you just came across him that way?

Joe England: Yes. His name is actually Ben Smith; he came to the same unit that works in the Baltimore, DC area. We instantly got along, and I just knew that he was a guy who, as he moved around from station to station, he would buy a new house in every area, and then once he moved, he would rent it out. I think by the time that I met him, he had like seven houses.

A few years later he decided to leave and head off to the next assignment, and when he did that, he decided that he was going to start flipping, and it turned out he was really good at it. After three years, he was probably one of the most well-known flippers in Baltimore, in just such a short time. His advice influenced and has been instrumental into my business, and it’s honestly a success. I wouldn’t be where I am without him.

Joe Fairless: What are some principles or tactical things (however you wanna approach this) that you learned from him that you applied towards your business, that has helped you be successful in your rehabs?

Joe England: I remember one of the first quotes he ever kind of gave to me was in regards to making offers. I remember when I was making my first offer and he asked me, “So how do you feel about your offer?” I was like, “Oh, I feel pretty good.” He was like, “Do you feel embarrassed by it?” I was like, “No.” He was like, “Well, it’s too low. If you’re not embarrassed by your offer, it’s too high.” So always go lower.

I started out adopting this principle of putting out these embarrassingly low offers, and most of them would get rejected, but occasionally – and it would happen – someone would come back and say yes, and then I suddenly got a property that was anywhere from 20% to 30% under market value, for whatever reason. You just never know… That’s my strategy when it comes to finding properties that are listed. I just see a property I have online, I look at it, I do the numbers real quick, and then I just send out these pretty embarrassing low offers. That’s how I found the majority of my houses.

Joe Fairless: Just online listings, sending embarrassing low offers, and it’s a volume game, right?

Joe England: Yeah. I know that other places this isn’t really much of a viable option, but one of the things that helps me is the fact that it is Baltimore city, and people are generally (for lack of a better word) afraid to do business in the city, for a number of reasons; we have its reputation for crime, the tenant-friendly laws, the high utility bills… You’re just dealing with the city and any type of its public work is pretty much a nightmare. But because of that, we have less competition, and then I know all the majority of the areas in Baltimore, because I drive through them; actually, I walk all of them, so I can spot areas that other people wouldn’t to find these diamonds in these roughs.

Joe Fairless: Talk to us about where the areas are in Baltimore that you see as good investment opportunities.

Joe England: This has actually changed, I would say, in the year, year-and-a-half since I started. So when I first started the actual rehabbing portion of the business, my main focus was an area known as Loch Raven. It’s sort of like a middle-income, blue-collar, working community just South of [unintelligible [00:11:27].18] University. And what was really nice about this area – the houses with the ARVs were around 150k, but we were able to get distressed homes between 50k and 65k, and they usually needed anywhere from 30k to 40k to put into it.

The margins were there, but one of the great things about this community is there were houses on Zillow that weren’t being purchased. Unfortunately, that neighborhood is now completely saturated as far as investors go, and I can’t find a distressed property there that doesn’t get swooped up by another investor… And a lot of them are new investors who are just trying to make the numbers work, and I’m getting outbid on properties; I’ll put in an offer — usually I don’t go any higher than 70k in this area, and then I’ll get outbid, and then I’ll find out that the house got purchased for $87,000. It’s ridiculous.

I think this has a lot to do with the market. As the height of the real estate market continues to raise, you get these people who are really excited about investing, and everybody wants to get into it and you have a lot of competition. But most people will go to what could be considered safe areas. Loch Raven, as far as Baltimore goes, is considered a safe area.

It got really hard to find distressed properties and not get outbid by them, so I started looking in sort of what I kind of like to think are some more of the fringe areas. For example, there’s an area in Baltimore that’s called Pigtown.

Joe Fairless: Pick or Tick?

Joe England: No, pig, as in like bacon…

Joe Fairless: Pig, got it. Pigtown, okay.

Joe England: Yeah, Pigtown, yeah.

Joe Fairless: [unintelligible [00:13:17].14]

Joe England: It’s actually just next to all the stadiums in Baltimore, just West of it, and it’s been an up-and-coming town for the last ten years, or that’s what they’ve been saying… And when I first got into it, one of the things that you always hear in Baltimore is “Oh, you should invest in Pigtown. It’s up-and-coming.” I remember first going over there in the summer of 2015 and I saw Pigtown myself, I was like “Well, this is not up-and-coming.”

Well, I just happened to go by there last year as I noticed that it was getting harder and harder to find properties in Loch Raven, and then I noticed that there had been a lot more rehabs and a lot more revitalization of that area, so I was like “Okay, well things are starting to pick up here”, so I started purchasing houses in that area. If you imagine a line of houses that are getting flipped, after a year that line moves a few blocks over… Well, I’ve essentially bought houses in preparation a few blocks down from where the houses are being rehabbed. But because people [unintelligible [00:14:19].25] block-to-block analysis, a lot of people won’t go that extra few blocks… But I first make sure that they work as a rental, so just in case that those property values don’t necessarily go up in five years, but they work as rentals, but at the chance that they do, these properties have the potential in 5-10 years to be worth $100,000 more than they are now. So that’s another strategy I’ve adopted as a rental rehab.

Joe Fairless: Let’s dig into that part a little bit, because it’s really relevant for most of the Best Ever listeners… Because when we have a submarket that we really like, and then all of a sudden it gets real hot and now we can’t find any deals, we’ve got to pivot and find the next submarket that we like. So I wanna dig in here a little bit into Pigtown, and I want to learn more and understand more about how you identify this as an area… And let me know if there’s additional things. First, I heard that you had heard for a little while that that was up and coming area, and when you first saw it, it was not, at least according to you, and now it is.

Secondly, you saw that there were already rehabs and revitalization happening in the area… Are there any more granular details or metrics or something that you can talk to us about for how you decided that this is the new submarket that you’re in?

Joe England: This is just one of the submarkets, but I think this is probably the best example of this strategy (Pigtown), but when I went and first looked at it back in December 2016 – this would be easier if I could show it on a map, but just East there’s this large road that goes down this part of Baltimore where all the stadiums are, and it’s known as Martin Luther King Boulevard… And everything West of Martin Luther King Boulevard is known as West Baltimore, and of all the parts of Baltimore, West Baltimore is known to have the worst reputation. Pigtown sits right there on the edge of Martin Luther King Boulevard, but the thing that Pigtown has in its favor is it’s right to the University of Maryland Medical Center. And one of the things that Baltimore is known for – and this actually goes back to how I pick areas – is there are hospitals everywhere in Baltimore… You know, John Hopkins and all these different satellite campuses… Well, Pigtown is one of those that’s right next to the University, so if you were to revitalize these areas, these houses, then these doctors, nurses, people who work at these hospitals would like to stay there, because it’s a good location, near the hospital, you’re right next to the stadiums, you’re a short little ride from any of the nicer parts in Baltimore…

So when we first looked, there was maybe like one or two getting flipped, and they were not that far from this particular road. But when I came back a year later, there had been maybe 30-40 rehabs in that area, and it was slowly moving West-ward, away from the road, to sort of revitalize the rest of Pigtown, and it’s been slowly moving farther West… South-West, if you will; that’s the shape of Pigtown as it leaves Martin Luther King Drive. So when I looked at it, it was hard to find properties that were right around where everybody was flipping, for there was a lot of competition. So I started looking a few blocks down, and there were a lot of houses that were either in decent condition, or they were distressed but they didn’t necessarily need a full gut… But based on the rents, I could get a house, buy it, rehab it between 60k and 70k, and they would rent for $1,200 or $1,100. Not as good as some of the profit margins that I get in some of the lower income areas, but the houses in lower income areas — and just to label one of the areas, it’s known as Biddle Street (that’s where I have a bunch of those houses).

So Pigtown has the potential of appreciating. These houses have the potential to appreciate, but the Biddle Street houses don’t. I even had them appraised last year when I was doing a portfolio loan, and the houses in Biddle Street would come out to about $35,000. But it didn’t really matter, because I owned them outright, and each one makes $1,100 to $1,200 in rent.

So going back to Pigtown, these houses made sense as far as rent goes, but with also the potential to appreciate as this line of flipping and rehabs – the whole area is getting revitalized… It may take a number of years, but I think in 5-10 years that it’s possible that this houses will be worth $50,000-$100,000 or more, because of how you looked at the history of how Baltimore revitalized some of its areas, and that’s usually what happens. The property values will definitely go up. But in case it just doesn’t — I don’t bet on that as a strategy. I don’t put all my eggs in one basket. It first has to work as a rental, so if it never appreciated and stayed at the exact value, that it still makes a good investment property. But for me that’s just kind of like the icing on the cake, the fact that it could possibly be worth $50,000 to $100,000 in a number of years.

Joe Fairless: That’s great. Thank you for walking us through that. That’s relevant for a lot of the Best Ever listeners, myself included, as we find the submarket we like, and then it gets too hot and we’ve got to identify another submarket or submarkets. Based on your experience as a real estate investor, what is your best real estate investing advice ever?

Joe England: It was kind of like a combination between my mentor Ben Smith, and I would say reading Grant Cardone’s 10X Rule. I remember going to visit my buddy Ben for the first time, and we were sitting down to talk about real estate for the very first time; I went down to his basement, and that’s where his office was. I sat down there with him; he had a multi-monitor set up, and he’s multi-tasking, going through all this stuff, and he just kind of mentioned “You know, when I get off work, this is what I do. I just come down here. I love it.” He even mentioned that it’s like a borderline obsession.

Then going back to it and listening to Grant Cardone’s book, The 10X Rule – massive action, you get those massive results, but really it comes down to having an obsession for this, because if you’re not obsessed with it… It’s hard to explain, but…

Joe Fairless: You get burned out.

Joe England: Yeah, you get burned out, but if you are obsessed with it, you just go at it; I come home every single day, and there’s a lot of other things that I could be doing, but I come back, I sit down at the computer and I start going through the listings, and I start sending out e-mails, and I start sending out offers, and much to the dismay of my real estate agent, I do this on a daily basis. Sometimes she’ll get hit with 5-10 offers that she has to do every single day.

Joe Fairless: Are you single?

Joe England: I am.

Joe Fairless: I was gonna ask how your significant other appreciated your obsession and how you navigated that, but it’s a non-factor…

Joe England: Well, I would say before that I would be – call it different things – a socialite, somebody who would always go out, go to the bars, go to the clubs; I definitely had a very robust social life. Then once I started real estate, that all went out the window. Looking back at it, I could care less, because I look at what I’m doing as I’m building a future for myself, and hopefully a future family, but also for the things that I wanna accomplish in life to help other people.

One of the dreams that I have is to take a group of people over to Africa, where I’ve deployed a lot, and help with a lot of situations over there; that could definitely help more areas that have been affected by poverty and food shortage, because of warlords taking food and using [unintelligible [00:22:22].19] and stuff like that.

When I was going out in the town and drinking and all that stuff like that, I wasn’t taking a single step forward to any of that – nothing future in my life, dreams or anything like that… So that was the biggest change in my life, once I started this venture.

Joe Fairless: Yeah, what you’re doing now has staying power for now and for your future and everyone else’s around you with a ripple effect. Are you ready for the Best Ever Lightning Round?

Joe England: Yeah.

Joe Fairless: Alright. First, a quick word from our Best Ever partners.

Break: [[00:22:56].03] to [[00:23:48].02]

Joe Fairless: Best ever book you’ve read?

Joe England: This is really hard. I would have to say it’s between Grant Cardone’s 10X Rule and actually Elon Musk’s autobiography.

Joe Fairless: Alright, I’ll check out Elon’s. I haven’t read Grant’s, but I get the gist of it just through me studying him, and I’ve interviewed him on the show, and some things… But I really love studying Elon, so I’ll check that out. What’s the best ever deal you’ve done?

Joe England: The best ever deal I’ve ever done… That could be like a [unintelligible [00:24:16].12] answer.

Joe Fairless: Just give me one.

Joe England: I would say the easiest – a wholesale deal where I made 12k and I feel like I put an hour and a half work into it.

Joe Fairless: That’s a very good return… Even better than lawyers and doctors. What’s a mistake you’ve made on a transaction?

Joe England: I would say I always try to keep obviously emotion out of it, but sometimes there has been one or two deals where I felt like — one specifically that I raised up in price to get the deal, and I definitely regretted it later on. I still made money, but I cut it close. It ended up being a flip. After that, I just stick to the numbers; it sucks, but at the end of the day there’s always gonna be another house. That’s one of the great things about real estate. Houses are constantly depreciating; whatever rehab has been done, whatever HVAC system you put in, it’s on its way out every single day. Even new rehabs will need to be rehabbed in 10-20 years.

Joe Fairless: How can the Best Ever listeners get in touch with you?

Joe England: You can reach me by my e-mail. I’m actually currently setting up my website right now, but for right now the best way to reach me is through e-mail, which is jde@vikingpropertysolutions.net.

Joe Fairless: Well, thank you for being on the show. Thanks for talking about how you’ve been able to grow your real estate business from when you first got started, right out of the gate really quickly on those first three deals, to now rehabbing properties and perhaps eventually developing a turnkey model as well along the way, but then really growing your own portfolio.

The macro lesson for all of our listeners is how to find a new submarket when your gets too hot. Yours initially was Loch Raven – or at least one of them you had a lot of properties in… And then you had to find a new one, so you looked at — path of progress, you looked to see where are rehabs happening, and an area that’s being revitalized, plus has some consistent job presence in the Maryland Medical Center… So the takeaway would be look for hospitals, look for other medical offices, and then also having a lot of convenience factor, in this case close to the stadiums.

Then lastly, just buying for cashflow and making sure that the property works as a rental… Although I said lastly, that’s really the top priority – buying for cashflow, making sure it works as a rental, and then if you get appreciation on top of that, as you said, that’s icing on the cake.

Joe England: Exactly.

Joe Fairless: Well, thanks for being on the show. I hope you have a best ever day, thank you for your service again, and we’ll talk to you soon.

Joe England: Thank you so much.

Joe Fairless's real estate podcast

JF910: Why He PASSED on a $17MM DEAL, or Was It?

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$17 million development deal? Well, you’ll have to hear what happened. Just remember that trusting your gut may be a good thing…especially when developing and speculating market conditions.

Best Ever Tweet:

Brooke Kaine Real Estate Background:

– President & CEO of Kaine Homes, Inc. & Kaine Investments
– Over 30 years experience in real estate business
– Land & new homes builder, built over 1,500 homes, private money lender $6M capital, 20-25 loans at one time
– Has 86 residential rental properties as partner with BOA Partners, LLC Jared Sleeth
– Real Estate Investor, Investment Manager at Kaine Investments, a private money lending company
– Investing for over 4 years all while working full time job, in August 2016 quit full time job to invest full time
– Based in Baltimore, Maryland
– Say hi to them at http://www.kainehomes.com/
– Best Ever Books: The Millionaire Real Estate Investor by Gary Keller

Made Possible Because of Our Best Ever Sponsors:

You find the deals. We’ll fund them. Yes, it’s that simple. Fund That Flip is an online lender that provides fast and affordable capital to real estate investors. We make funding your projects easy so you can focus on what you do best…rehabilitating homes.

Download your free copy at http://www.fundthatflip.com/bestever

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JF867: From Rabbi to Zillow Competitor Helping Landlords Fill Vacancies

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That’s right, he wanted to be a rabbi. He later developed a platform that is becoming very pro in filling vacancies for landlords. He even states that he would love to compete with and eventually become the new Zillow. Hear how he got to this point and how he’s growing the business.

Best Ever Tweet:

Ben Schwartz Real Estate Background:

– Founder of VacancyFillers.com, a tenant placement company
– To date have helped sign 287 leases and brought in $3,602,482 of rent revenue for clients
– Success of his company stems from the online platform of unique marketing and systems
– Based in Baltimore, Maryland
– Say hi to him at http://www.vacancyfillers.com/
– Best Ever Book: The 10x Rule by Grant Cardone

Made Possible Because of Our Best Ever Sponsors:

You find the deals. We’ll fund them. Yes, it’s that simple. Fund That Flip is an online lender that provides fast and affordable capital to real estate investors. We make funding your projects easy so you can focus on what you do best…rehabilitating homes.

Download your free copy at http://www.fundthatflip.com/bestever

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real estate pro advice

JF852: How to Transition to from Pen and Paper to a CRM #SkillsetSunday

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It’s time to update your process of lead generation, capture, and follow up. Throw out your pen and paper and let’s start automating! Of course this is done through an electronic program or software known as a CRM. You’re about to hear one of the best CRM’s on the market, turn up the volume and take some notes!

Best Ever Tweet:

Carlos Zamora Real Estate Background:

– Account Manager & Managing Partner of InvestorFuse, a lead management CRM system for investors
– Began wholesaling 3 years ago
– Graduated from the University of Maryland, College Park in 2013 with a degree in Communications
– Based in Baltimore, Maryland
– Say hi to him at www.investorfuse.com

Made Possible Because of Our Best Ever Sponsors:

You find the deals. We’ll fund them. Yes, it’s that simple. Fund That Flip is an online lender that provides fast and affordable capital to real estate investors. We make funding your projects easy so you can focus on what you do best…rehabilitating homes.

Download your free copy at http://www.fundthatflip.com/bestever

https://www.youtube.com/channel/UCwTzctSEMu4L0tKN2b_esfg

Subscribe in iTunes and Stitcher so you don’t miss an episode!

Best Ever Show Real Estate Advice from experts

JF792: How You Are Missing Out On THOUSANDS by Not Creating This Experience for Your Tenants

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Are you ready to 10 X your return? You are a few professional photographs and some excellent customer experience pointers away from maximizing your income from your cash flow properties. Today’s guest is a pro in creating the hotel or vacation experience for her residents. Hear how you can set it up in your own real estate business and why it definitely makes sense.

Best Ever Tweet:

Susan Colwell Real Estate Background:

– Principal Partner at TriStar Group, A Real Estate Investment Firm
– Host of Real Estate Investor Radio podcast
– Spent five years managing two successful vacation-rental companies
– Based in Baltimore, Maryland
– Say hi to her at http://tristarinvesting.com
– Best Ever Book: The Alchemist by Paulo Coelho

Want an inbox full of online leads?

Get a FREE strategy session with Dan Barrett who is the only certified Google partner that exclusively works with real estate investors like us.

Go to http://www.adwordsnerds.com strategy to schedule the appointment.

Subscribe to Joe’s YouTube Channel here to learn multifamily and raising money tips:
https://www.youtube.com/channel/UCwTzctSEMu4L0tKN2b_esfg

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JF504: How You Can Achieve COMPLETE Automation in Your Real Estate Biz!

System building is his definition of being an entrepreneur. Our Best Ever guest is tenaciously seeking to create a product and environment that streamlines YOUR wholesale business using workflows and Podio, a simplified CRM. He started in a band and later jumped into systematic software creation for real estate. You will save thousands of hours if you listen to him, tune in!

Best Ever Tweet:

Dan Schwartz background:

– Musician, real estate investor and automation junkie determined to enhance the freedom  of entrepreneurs through technology and systems
– Has done 100+ wholesale deals since 2011 and a handful of rehabs
– based in Baltimore Maryland and say hi to him at http://www.investorfuse.com
– working on a lead management platform designed around the 80/20 principle
– Will be launching a fully automated membership work space called InvestorFuse in 2016.


Made Possible Because of Our Best Ever Sponsors:

Please Take 4 Min and Rate and Review the Best Ever Show in iTunes. . 

You find the deals. We’ll fund them. Yes, it’s that simple. Fund That Flip is an online lender that provides fast and affordable capital to real estate investors. We make funding your projects easy so you can focus on what you do best…rehabilitating homes. Learn more at http://www.fundthatflip.com/bestever.

What’s the Best Ever health plan for YOU?

Go to http://www.stridehealth.com/bestever and find a better health plan in 10 minutes or less. On average you’ll save $418 on coverage and care.

Listen to all episodes and get a FREE crash course on real estate investing at:http://www.joefairless.com

 

 

 

 

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Best Ever Show Real Estate Advice

JF350: Some MAJOR Advantages of Buying Through an LLC as Opposed To Your Own Name

Today’s Best Ever guest has the same idea you probably do- to NEVER have to work a full time job again. She is well on the track to that, and shares with us how she does her investing to cashflow almost right away!

Best Ever Tweet:

Nicole Williamson’s real estate background:

–           Based in Baltimore, Maryland

–           Purchased 2 rental properties within 6 months of each other in 2012 and today has a total of 6 units in Baltimore County

–           Say hi to her at http://www.streamingrentalincome.com

–           Volunteer at a local animal shelter and does work on her own cars

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Made Possible Because of Our Best Ever Sponsor:

Patch of Land – Could you do more deals if you had more money? Let the crowdfunding platform, Patch of Land, find investors for you and fund your next deal…and your next deal…and your next deal…and…well, just go find out more at http://www.PatchOfLand.com

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Best Ever Show Real Estate Advice

JF310: Renting to Section 8 and College Students and ALL You Need to Know About It

Our Best Ever guest today, shares with us the reasons you should NEVER stop buying. We also discuss the benefits to buying whenever and wherever you can, and all the implications of renting to section 8 tenants and college students.

Best Ever Tweet:

I go where the numbers make more income per the square footage of the house.

Pat Hiban’s real estate background:

–          Top producing real estate agent and owner of Pat Hiban Group with Keller Williams

–          Based in Baltimore, Maryland and active investor in real estate deals as well

–          Has 12 single family homes and 7 apartment buildings, a strip center, office building and 14 private companies

–          Awarded #1 Keller Williams Realty Agent in units sold nationwide in 2006

–          Host of popular podcast “Real Estate Rockstars”

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Made Possible Because of Our Best Ever Sponsor:

Patch of Land – Want to learn more about crowdfunding? Let the leading expert in the crowdfunding space, Patch of Land, give you all the info you need to get started. Grab your FREE copy of Top Ten Answers to the Top Ten Crowdfunding Questions athttp://www.PatchOfLand.com/bestever

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