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Flipping Junkie - Danny Johnson - For Those Addicted to Flipping Houses

Flipping Junkie is a podcast for people addicted to flipping houses and real estate investing. Subscribe for weekly episodes with interviews from regular Joe house flippers that have become successful flipping houses as well as expert real estate investors sharing their best secrets on how to flip houses for big profits. Find out in detail, what is working today, to find great deals for flipping, how to properly analyze deals for flipping, renting and owner financing, determine repair costs, find contractors and manage rehab crews, what improvements to make and how to quickly sell your houses for big profits. Don’t worry, we won’t leave out the serious mistakes that you need to avoid when get starting and growing your real estate investing business. Join Danny Johnson to get the inside scoop on how to get started in this life changing business that has such huge potential to create financial freedom for you and your family.
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Flipping Junkie - Danny Johnson - For Those Addicted to Flipping Houses
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Now displaying: August, 2016
Aug 29, 2016

Over 6 years of developing and building a owner finance real estate investment company. Starting from scratch he has figured out the best way to create and sell real estate notes. He currently "flips” 75+ houses and notes a year and are shooting for 100. He’s been in real estate for over 15 years and have done a little bit of every kind of investing. His passion is in the creation of real estate notes because it affects the most people. You are helping the seller by buying their house.  Then the neighborhood by rehabbing it. The buyer by offering owner finance and the investor by creating a good quality real estate note. 

Erik was on episode 27 where we talked about Finding and Working with the “Right” Contractors

 

Erik is on track to do 100 deals this year.  Obviously, to do a 100 deals in a year, you’ve got to be good at marketing for motivated seller leads.  While Erik does do direct mail to find motivated sellers, he also uses other methods. 

 

Today we talk about those other methods.  We focus today’s episode on using bandit signs.  Disclaimer: Check with your local city offices to make sure it’s legal for you to put signs out.  They are illegal in a lot of places. 

 

He shares a great tip on getting 4x8 sheets of corrugated plastic that he cuts down into bandit signs that have odd shapes. These signs grab much more attention than printed signs.  He then writes on them with giant markers.

 

This is the way to go to get maximum benefit out of bandit signs.

 

The next thing we talk about is using newspaper ads to generate motivated seller leads.  While print newspapers are dying and don’t get the readership they used to, you can still get ads displayed in them and online as most have a website now. 

 

The great thing about online newspaper classifieds is that you can now have your ad show to visitors that might not even go into the classified section of the newspaper.  There are a lot of possibilities here and not a lot of competition.

 

We also talk about using Facebook to target the exact demographics of people investors normally buy from.  This varies greatly by area and also by investor, so it’s more up to you to determine which demographics you should target.

 

Facebook is just another medium to have your message displayed in front of people that might need your services.  Why not take advantage of the power of Facebook ads to generate motivated sellers leads for your real estate investing business?

Aug 22, 2016

Don was on episode 36.  Be sure to visit the show notes page at http://flippingjunkie.com/36 to download his Joint Venture Agreement.

Don Costa, is a married father of 3 kids.  He has been in the real estate business for over 10 years.  He started Knocking on doors and wholesaling properties, and then quickly moved to flipping houses.   Currently his office is on track to do a 100 flips this year.

Don is a networking machine!  He is on track to do more than 20 flips this year solely from his networking efforts.  Crazy!

Networking as a real estate investor is one of the cheapest ways to generate leads and deals and is probably the least utilized method of all.

Don mentions that he feels networking to be the best way to use Other People’s Marketing.  Many investors use Other People’s Money, but few use Other People’s Marketing.

He calls all the marketing from other investors in his area and quickly asks if the investor is a wholesaler or a cash buyer.

His conversation is then guided by whichever the investor mentions they are.

If they are a cash buyer, Don wants to find out if they’d be interested in lending on a deal or joint venturing and splitting profits.

If they are a real estate wholesaler, he wants to know how many deals they’ve done.  If they haven’t done many deals, he invites them to his offer and provides coaching.  This is awesome because he is building a relationship with a new wholesaler that could bring him deals for years to come.

He even offers to do deal analysis for wholesalers so they know they already have a buyer at a given price.  This takes almost all the risk out of the deal for them…which is invaluable when you are new to this business.

In this episode, we do a little role playing to see exactly what Don says when he calls real estate investors.  The insights are incredible.

Listen to the episode to get the tips that have helped Don Costa to generate over 20 flip deals this year alone.

Aug 15, 2016

Get show notes at http://flippingjunkie.com/47

 

Jim has been a real estate investor in Northern Illinois since 2007, He is also a licensed real estate agent (IL) and has been since 2005. He started out as an aggressive new agent helping investors buy and sell their rehab properties. Then he quickly realized he was on the wrong side of that transaction and that is when he decided to become a real estate investor myself. These days his primary focus as an investor is residential redevelopment (aka rehabbing).  He primarily works in Chicago and its NW suburbs and had used his local Multiple Listing Service (MLS) to get 75% of his rehab deals over the last 8 years. Since he got into the real estate business he has been involved in over 450 transactions.His company does 8-10 rehabs at any one time. Though Jim is an active investor he spends as much of his time as possible with his 4 year old twins, Liam & Claire, and his awesome wife who stays home with them. He told us "Everything changed when I had kids. Suddenly I looked at everything differently and literally changed almost everything in my life. I got healthy, quit drinking, lost 50lbs and have never looked back. Life is much more enjoyable on this side of your health".

Jim’s secret to getting great deals on the MLS starts with planting the right seeds with the real estate agents involved.  Effective communication is absolutely necessary.

You have to convince the listing agent so that they will convince the seller that your offer is worth considering and ultimately worth accepting.

Jim has bought tons of houses where his offer wasn’t the highest but he convinced the agents that his was the best offer.  To make his offers more appealing he does the following:

1. Waives the inspection

2. Informs the agent that other investors and potential buyers include inspections because they will likely renegotiate after the inspection.

3. If not a bank-owned property, he tells the listing agent to inform the seller that, when he through fixing up the house, most of his houses are sold to young families.

4. He puts up a strong earnest money deposit (around $5,000 for a house with an ARV between $400k and $500k).

5. He puts in for a 2 week closing.

Agents hardly ever know what a seller is going to be willing to take for their house.  They all have assumptions and we know what assumptions do…

So, don’t ever rely on a listing agent telling you their client will never entertain a low offer.  This is crap.  They are obligated to submit all offers, so go ahead and submit yours and try to convince the agent of the real benefits of your offer (not just price).

Jim also mentioned that 90% of his MLS deals required follow up.  He usually does this using hotsheets to automatically check for status changes for the listings. 

If you want to win even more deals, it’s best to have a system in place to remind you to follow up just before typical price changes.  There’s no way to guarantee when there will be a price change but you can set up reminders for yourself for each property very easily in REImobile so that you can set it and forget it.

The criteria for properties he makes offers on are usually based on location but also the presence of one of the following keywords:

estate sale, REO, bank-owned, motivated, needs work, original owner, handyman special, as-is, fixer

Aug 8, 2016

As a Wholesaler with just over 3 years of experience, Tom has had explosive growth. As head “Rhino” of the most successful Tribe of Wholesalers on the planet he has had the fortune of meeting true Go Givers and being a part of some of the best real estate deals in the industry. 

When he’s not writing, podcasting or creating courses that force others to succeed, you’ll find him spending time with his wife and 4 children or vacationing in favorite spots like Key Largo, Hilton Head, Charleston and Savanah. 

Currently he is writing his first book, working title “Wholesaling Real Estate Like A Rhino, A No BS No Fluff Step-By-Step Blueprint To Wholesale A House Right Now” is slated for release this fall.

In this episode, Tom shares his top 8 direct mail lists for motivated sellers as a real estate investor.

 

The best direct mail lists are:

1. Tax Delinquent List - criteria:  2 years behind, are still the homeowner

2. Code Violation List - no criteria

3. Equity List - Absentee Owner, Owner Occupied and Global (all) - criteria: over 45 years old owner, last sale date between 1990 and 3 years ago.

4. Inheritance List - USLeadList

5. Evictions - no criteria

6. Yard Sale/Garage Sale List - tenants sell before they move

7. Probate - Recommends getting course from Rick Ginn

8. Arrest Record List - list of people recently arrested

Tom shares lots of pearls of wisdom in this episode that pertain to investing in general.  One of these nuggets is from Jack Bosch.  He says that you will get 5 no’s before you get a yes when asking people at your local government offices for each of these lists.

The first, second, third, fourth, and even fifth person you talk will tell you the list doesn’t exist or that they cannot give it to you.  The sixth person will say, ‘Here ya go!”

Tom also shares a great tip from his friend, Mark Evans: ‘Data not Drama’  He is referring to keeping track of your mailing campaigns and the results you are getting.

We make this super easy in REImobile with our Direct Mail Module.  Check it out here: http://reimobile.com

Tom also talks about how ‘Money is in the Database’.  You have to keep track of your leads and follow up!  …this is also exactly the reason why we developed REImobile…

I’m telling you, you’ve got to check out the system.

Aug 1, 2016

Husband. Father to His Two Year old Son, Nolan!

He’s a graduate of Ball State University living with my beautiful and super supportive wife in Indianapolis, Indiana. Prior to becoming a real estate professional he worked as Healthcare Technology Education Consultant at Indiana University Health. He’s also a successful poker player with a few TV final tables…which I found super interesting.

He’s spent the past several years learning all that he could about real estate and applying it so that he could provide enough income to support his family.

The education has paid off and he’s now a full-time real estate investor in Indianapolis.

Ben started by following my Flipping Junkie blog and went on to take my wholesaling training course FreedomByFlipping (http://freedombyflipping.com).

He’s grown his business and has staff helping him already.  During this episode, Ben shares how he doesn’t focus at all on what his letters say as he simply outsources them to Jerry Puckett who handles the list and mailing them for Ben.

During the conversation we make special note of the importance of credibility when marketing to motivated sellers through direct mail.

Ben mentions how important it is to be a member of the chamber of commerce, better business bureau and have other professional credibility and endorsements.

Testimonials are huge.  Ben advises to get and show testimonials whenever possible.

He always has motivated sellers tell him they called him because of the testimonials and reviews they saw.

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