Mark Ferguson fixes and flips 10 to 15 houses a year and owns 15 long-term rentals. His grand plan is to purchase 100 rental properties by January 2023.
Mark tells us about how he got started working with his dad, who is a Realtor and house flipper.
In this episode, Mark shares his strategies for competing for properties on the MLS. Key points include:
<li>checking for new listings multiple times a day</li>
<li>getting out to see each house and make an offer within hours</li>
<li>have assistant in his office draw up the offer contract and send it to him to docusign and then forward to the listing agent</li>
He was also gracious enough to share his strategies on making his offers stand out by making them stronger. Some of them include, increasing the amount of earnest money, remove any contingencies (including the inspection contingency) and offering to close quickly.
Mark is smart because, even though his market is crazy hot right now as it is in many other places around the country, he has kept to his buying criteria. Others stray from their buying criteria and start to offer more for houses in order to get more deals. These are the same people that end up going broke when the market changes.
Seth Williams is an experienced land investor, residential income property owner and commercial real estate banker. He is also the Founder of REtipster.com - a real estate investing blog providing real world guidance for part time real estate investors.
This interview is packed full of interesting information about buying and selling vacant lots….and the really cool thing is that most of it relates to buying and selling houses.
Find out how he builds a mailing list that typically gets better than a 10% response rate along with the exact message he puts on his postcards.
Learn how he analyzes these deals so that he knows what he can offer and still make a great profit.
Seth also shares how he is able to sell these lots for passive income and make even more money.
There were several things that surprised me during the interview, like when he informed me that most people that buy lots from him aren’t going to build houses on them. Find out why, in today’s episode.
Top 3 Things We Love (and Hate) About Our Businesses
1. Freedom to do what I want, when I want
2. Large pay days (and thrill of the chase getting deals)
3. Working the business with my wife
Hate - strong word, dislike is more accurate
2. Bad contractors
3. Dishonest investors
Never a dull moment…ups and downs…
Seth’s Loves and Dislikes
1. Thrill of getting accepted offers - that it’s possible to get great deals
2. Passive Income
3. Large Paydays
1. Times when properties don’t sell immediately
2. Uncertainty of whether deals will be consistent in his pipeline
3. Cumbersome and time-consuming processes for buying and selling
He got started investing in real estate during college around 2005 and 2006. The <strong>real estate market then was white hot</strong> and that <strong>made it difficult to get good deals</strong>.
<strong>Seth decided to start buying and selling land. </strong>
Seth finds his deals by tracking down people that own vacant lots that are delinquent on their property taxes. He does this by contacting the tax assessors and treasures for the counties where the properties are and asks for a spreadsheet with the addresses and owner’s information.
Some will give out this information quickly and without hesitation and then some counties will make it very difficult, if not impossible.
He gets these records anywhere from free to up to 25 cents per record.
With records in hand, he then sends out post cards to the people that are delinquent on their property taxes. <strong>He says he typically gets better than a 10% response rate (which is pretty damn good) with these postcards!</strong>
Kevin Ramirez is from Venezuela living and is doing business in Raleigh, North Carolina.
He started in Real Estate at 19 years old with a flip, found a JV partner to fund the whole deal and after that fell in love with the business. He currently focuses on rehabbing and wholesaling. Every deal he has done has been without his own money.
Currently 21 years old, still a one man operation, he is working on building systems to automate his business. With 19 deals to date in 2015 he is looking to close the year with 25.
He doesn’t yet consider himself an expert and stays open to learning more and more every day.
What you will learn in this episode:
<li>How Kevin Ramirez was able to get funding for his first deals even though he was 19 years and new to the business</li>
<li>Find out how his first flip made a total profit of $65,000</li>
<li>Where he found his money partners and how he got them on board with him</li>
<li>What key points need to be covered in a Joint Venture agreement when flipping</li>
<strong>Kevin’s first deal generated a total profit of about $65,000!</strong> Not bad for any deal, let alone a first rehab deal.
Sharon Vornholt is the owner of Innovative Property Solutions in Louisville, KY. She has been investing in real estate since 1998 and has been a full time wholesaler since 2008.
Sharon is the creator of the Louisville Gals Real Estate Blog and the popular podcast “Let’s Talk Real Estate Investing”. She is also a mentor and a coach who loves teaching others how to succeed in this business.
How she got her start
Sharon’s dad was a contractor that used to drag her to a lot of different job sites. She owned and operated a house inspection company for 17 years.
She then attended a Real Estate Investor Association meeting and learned about flipping houses. She then started rehabbing. Her initial plan was to rehab and get big chunks of money to buy rental properties with. That worked for a while, but then the market changed….big time.
In 2008, she found it difficult to sell houses (as did everybody across the country). This is when she found out how awesome wholesaling was. She decided to try and sell a house she was going to rehab to another investor and see if she could make money quickly, without doing any fix up.
She’s been wholesaling ever since.
In this episode, Sharon talks about the differences between an assignment of contract and a double-close. The gist is that assigning a contract involves getting a house under contract and then selling the contract (as well as the obligation to close on the contract) to another investor for a fee.
Double-closing involves a little more complexity. Not much though. There are two transactions with a double-close. You have a A B transaction where the seller of the house sells the house to you as the buyer. Then you have a B C transaction where you are the seller and the investor that is buying the house ‘as-is’ from you is the buyer. he funding from the sale from you to the end buyer goes to fund the first transaction between you and the seller of the house.
For many people considering wholesaling houses, the fear of not being to find a buyer and not be able to close the deal if they can’t find a buyer scares them from ever getting started. Sharon shares how she allows for an ‘out’ by using escape clauses. During the show, we went over three good escape clauses that included: ‘subject to accepted inspected’, ‘subject to partner approval’, and ‘subject to funding approval’.
In this episode, Mike Simmons shares awesome information about his house flipping business.
Having an accountability partner in this business can make all the difference in the world. Mike’s wife was his main accountability partner that kept him in line and working to make his business a success.
Keys to finding and approaching a mentor:
<li>Go to REIAs and Network</li>
<li>Provide value - If don’t have much money, donate your time</li>
<li>Ask around for who is doing the most deals and approach them to be your mentor</li>
<li>Get started by educating yourself and start taking action by doing some marketing to find some leads - when you have a lead you can take to a potential mentor, they will for sure listen to you and be more inclined to work with you</li>
Mike shares how he found a great real estate agent to find him deals.
He also reads the copy of the post card that he uses to generate lots of leads and the criteria he uses for generating his mailing list.