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Flipping Junkie Podcast with Danny Johnson

Flipping Junkie is a podcast for people addicted to flipping houses, wholesaling houses, and real estate investing. Danny started flipping houses in 2003 and has chronicled his journey to help house flippers both new and experienced. Subscribe for weekly episodes featuring interviews with people just getting started as well as big name investors like Brandon Turner of Bigger Pockets and Justin Williams from House Flipping HQ. The podcast covers a range of topics like what is working today to find great deals for flipping, how to properly analyze deals for flipping, renting and owner financing, determining repair costs, finding contractors and managing rehab crews, what improvements to make and how to quickly sell your houses for big profits and so much more. 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 and how to stay successful to create true financial freedom for yourself and your family.
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Flipping Junkie Podcast with Danny Johnson
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Now displaying: 2017
Mar 6, 2017

This vlog, Danny talks about the difficulties that running a real estate investing business can cause, like attorneys talking sellers out of deals. Don’t forget, all of the vlog episodes (and more) are available on the FlippingJunkie YouTube channel at http://youtube.com/FlippingJunkie

You know what really grinds my gears? Attorneys. And thieves (but we’ll talk about that second).

Do you ever run into issues with attorneys? For the most part, they’re not too much of an issue, but when they start making sellers or buyers question the deal it gets a little frustrating. For example, the attorney mentioned in the vlog wrote the buyer’s contract in such a way that it, basically, made the contract null. Just a little frustration.

Ok, those thieves. Long story short, our entire website got copied and pasted. Word for word, code for code. Understandably, Danny wasn’t happy. But, after taking a step back and looking at how poorly this is being taken care of, these thieves aren’t as intimidating as they think they are. We won’t get too much into it here. Just know that if Danny isn’t worried, no one else needs to be!

Stay tuned and be sure to subscribe to the FlippingJunkie Youtube channel: http://youtube.com/flippingjunkie

Mar 3, 2017

This this vlog, Danny talks about the idea of being the pilot of your flipping business instead of someone working on the ground. Don’t forget, all of the vlog episodes (and more) are available on the FlippingJunkie YouTube channel at http://youtube.com/FlippingJunkie

Are you working in your business or on your business? That might sound like a small difference, but it’s more important than you’d think. If you started your business from the ground up (like most real estate investors have) then you’re the boss. And being the boss means you can’t be spending your time running around within your business. You need to be taking care of things from above - working on your business.

That’s where the idea of being a Flip Pilot comes in. You need to be able to see your business from 30,000 feet up to be able to take it to the places you want to go. So focusing on managing your business means that you’re going to have to give up some of the hands on work to take on the bigger issues.

Let’s break it down. If you’re working in your business, you have to wear a lot of hats. You have to be the marketer, and the hiring manager, and the sales guy, and the foreman, and the legal team, and the boss. It’s too much. If you’re spread too thin then you aren’t replenishing your inventory fat enough to continue to make money.

Take Danny’s example. When he and Melissa were spread too thin, they would focus all of their energy on one property at a time. Which worked, for a little while. But once that property was finished, there was nothing left on deck. So then the marketing had to start all over with nothing generating money in the meantime.

Basically what we’re getting at is, are you switching hats too much in your business or are you taking charge? Be a Flip Pilot, not the ground crew! Let us know what you think in the comments :)

Stay tuned and be sure to subscribe to the FlippingJunkie Youtube channel: http://youtube.com/flippingjunkie

Mar 2, 2017

This this vlog, Danny talks about the similarities between PPC marketing and direct mail marketing tactics, and why sticking with PPC is so important for constant deal flow. Don’t forget, all of the vlog episodes (and more) are available on the FlippingJunkie YouTube channel at http://youtube.com/FlippingJunkie

Doing direct mail marketing is great for growing your reach to motivated sellers, but can often be discouraging (as we found out) when getting a 0.1% response is a good response…

Investing only about $500 to direct mail just wasn’t working for a few reasons: there wasn’t a targeted enough audience, and there wasn’t enough funding behind it.

The same rule applies to PPC marketing. If you’re only allotting $500 a month for pay per click, how can you expect to get the best ROI? You can’t. True, PPC is much more targeted, so your ads are getting in front of your exact audience, but as Danny points out this is a pay-to-play strategy. And it WORKS.

The other thing to consider when budgeting for PPC is how much a single deal is costing you. The more you pay, the better the return. You can’t just rely on getting lucky for every deal. So, let’s say you spent $3000 on getting one deal. That one deal will last you, what, about 3 months? That’s great! But you need to be generating other deals in the meantime. That’s why PPC isn’t a one-and-done thing, it’s on-going.

You can learn all about it in this vlog episode, and on the podcast.

Stay tuned and be sure to subscribe to the FlippingJunkie Youtube channel: http://youtube.com/flippingjunkie

Feb 23, 2017

This this vlog, Danny talks the crazy storms in San Antonio, and his upcoming Masterminds Meeting with Justin Williams and Andy McFarland. Don’t forget, all of the vlog episodes (and more) are available on the FlippingJunkie YouTube channel at http://youtube.com/FlippingJunkie

Aside from the insane storms in San Antonio (right near the office too! Yikes), Melissa and Danny are heading to Justin Williams’ and Andy McFarland’s 7 Figure Flipping Masterminds Meeting!

Not only is this an important networking opportunity, but it’s a great place to learn. Expanding your understanding of what you’re doing will keep you improving and make you a more worth while real estate investor.

There’s a saying that goes something like: “10 years of experience is only 10 years if you’re learning. If you’re not, it’s just 1 year repeated 9 times.”

Don’t be someone who’s just repeating one year of experience for the rest of your real estate investing business’s career. You want to be learning and expanding all of the time so that you can always be on top of what’s changing in the industry.

And there’s no better place to start that at the 7 Figure Flipping Masterminds Meetings! You can learn more at this link below. And we’re in the video! Neat :)

Stay tuned and be sure to subscribe to the FlippingJunkie Youtube channel: http://youtube.com/flippingjunkie

Feb 15, 2017

This this vlog, Danny talks about why you should be using a vision board to keep you on track both professionally and personally, and the steps needed to achieve those vision. Don’t forget, all of the vlog episodes (and more) are available on the FlippingJunkie YouTube channel at http://youtube.com/FlippingJunkie

Are you using a vision board? They’re great for keeping you on track, and motivated to reach those goals. Danny had a lake house and a plane on his vision board, as things that he never thought he would actually achieve. It wasn’t until this past weekend at Danny’s lake house that he realized he had achieved both of those things.

Melissa turned to him and said, “Hey this looks like the one on our vision board!” (Talking about their lake house). And she was right! Danny had reached the lake house goal, and (for personal reasons) he had gotten his pilot’s license! All from keeping himself motivated with his vision board.

Having a vision board will keep you organized and motivated. So, are you using a vision board? Use it to set personal goals, and business goals. Where do you want your business to go? What goals are you setting for your own self growth? Let us know in the comments!

Stay tuned and be sure to subscribe to the FlippingJunkie Youtube channel: http://youtube.com/flippingjunkie

Feb 13, 2017

This this vlog, Danny takes a drive up to his lake house where the family is spending the weekend, and talks about the importance of stepping away from the computer. Don’t forget, all of the vlog episodes (and more) are available on the FlippingJunkie YouTube channel at http://youtube.com/FlippingJunkie

Aside from just spending time with his family, it’s important for Danny to get away from the office and clear his head so that he can return to work on Monday ready to tackle the week. It’s important for everyone to do that! Danny spent his weekend with his family at his lake house, but how are you spending yours?

Stepping away from your computer is something Danny found valuable when he was on BiggerPocket’s show talking with them. This is something that’s just stuck with Danny, and has helped keep him grounded and focused on what needs to be done. Getting out there and talking to people in person, and driving around your city, are great ways to expand your knowledge of your target area. So don’t just sit in front of your computer all day, get out there and start talking to other investors and motivated sellers!

Stay tuned and be sure to subscribe to the FlippingJunkie Youtube channel: http://youtube.com/flippingjunkie

Feb 8, 2017

In the third vlog episode, Danny talks about his morning routine with his wife, Melissa, in the car with him on their way to the office. Don’t forget, all of the vlog episodes (and more) are available on the FlippingJunkie YouTube channel at http://youtube.com/FlippingJunkie

 

Danny’s morning routine got started when he found Hal Elrod’s Miracle Morning. Basically, the start of anyone’s day should be used to set up the rest of the day for success. So Danny talks about how he used his mornings for self reflection, exercise, and breakfast (or course).

 

Is your morning routine like Danny’s? Are you setting up your day for success from the moment you get out of bed, or are you pushing through everything instead of taking your time? Your morning should be a time to make sure your day will be a success, use it wisely!

 

Stay tuned and be sure to subscribe to the FlippingJunkie Youtube channel: http://youtube.com/flippingjunkie

Feb 7, 2017

In the second vlog episode, Danny talks about working the system to better run his real estate investing system. Don’t forget, these episodes are all available on the Flipping Junkie YouTube Channel at http://youtube.com/FlippingJunkie

 

Knowing how to run a business and making it successful has to do with how you work the system and react to things in a professional way. Danny talks about the ‘homework’ (because you never stop learning, even when you’re done with school) that he and his team have: reading.

 

The book Work the System, by Sam Carpenter, talks about how to manage a business with an emotionally detached point of view. Which really isn’t heartless, it’s objective for running a business efficiently. One of the best quotes that has helped Danny run his business is about looking at the work from above. The analogy goes something like this:

 

There are a lot of workers cutting down trees in a forest. They’re working really hard all day for weeks, and then the leader climbs up on of the trees to see their progress and finds out that they’ve been working in the wrong forest all this time. Danny keeps this in mind when working on his business instead of in it.

 

You can find the book at: http://www.workthesystem.com/get-the-book-free/

 

Stay tuned and be sure to subscribe to the FlippingJunkie Youtube channel: http://youtube.com/flippingjunkie

Feb 6, 2017

Danny has decided to start sharing the day-to-day inner workings of his businesses vlog (video log) style.  Yes, the videos recorded for these shows is available on the FlippingJunkie YouTube channel at http://youtube.com/FlippingJunkie

These will be quick episodes sharing stories of the days happenings and what it looks like for him and his team as they achieve their goals. 

He (this seems awkward as I’m writing this in the third person… anyway) wanted to have a platform to share all the epiphanies, struggles and wins experienced as each week goes by.  A video log seemed the best way to do so. Each episode will be included as audio on the podcast.

It’s going to be awesome sharing each day in the life of a real estate investor with the vlog and podcast.

In the inaugural edition of the Flipping Junkie Day In The Life vlog series, Danny talks about his breakfast meeting with his dad and brother.  As a real estate investor himself, Danny’s dad shared some stories of already installed flooring being stolen and Danny shared that the furniture, rugs, pictures and knick knacks from a fully staged house were stolen. 

This first episode gives us a glimpse of what to look forward in the coming episodes.

Stay tuned and be sure to subscribe to the FlippingJunkie Youtube channel: http://youtube.com/flippingjunkie

Jan 30, 2017

I’ve been hearing more and more investors talk about how they buy houses using online auctions like auction.com.  I’ve been fascinated by the strategy and was glad to get Paul Lizell on the show.

He’s buying 8 to 15 houses a month that he buys from online real estate auctions….all over the country.  How cool is that?

Paul started in Real estate in 1999, became a full time investor in the fall of 2004.  He had a background in commercial business loan underwriting and 4 years as a business development officer.  He’s been a licensed Realtor since 2006.  As a national real estate wholesaler, he does 6-12 fix and flips per year and owner finances 10 properties per year, mostly to investors.

You’d think that the ratio of houses to bid on to the number of deals he gets would be pretty crazy but he actually does pretty well.  He’s got online real estate auction thing figured out to where he bids on about 150 properties and ends up with between and 8 to 15 per month.  That’s awesome!

His favorite auction websites are:

auction.com

xome.com

hudsonandmarshall.com

realtybid.com

hubzu.com

He mentioned that hubzu is nice because you can get away with small earnest money deposits than the typical $2,500 the other auction sites require.

When looking for properties to bid on, he focuses on the smaller markets and targets in on the houses that have been listed for a long time.  The houses that are for sale for over 180 days or more are the ones that he puts bids in on.

During the episode he also gave several reasons why he prefers to close each of the deals at the title company of his choosing rather than the one preferred by the bank that owns the auction property.  The main reason was their hidden title company fees and lack of control over what is going on with the deal.

He was also kind enough to share with us his technique to get Realtors to tell us their BPO (which most don’t want to give out).  He does this by not asking for a BPO but by asking, “what would you list it at for a 30 day quick sale?” 

Brilliant!

Be aware that when buying auction houses online and then trying to wholesale them, you will not be able to assign them.  You will need to double-close…yet another reason to have a title company you know that can close the deals.

Jan 23, 2017

John Martinez, founder of Midwest Revenue Group, LLC (www.midwestrev.com)  is a sales development expert and a highly sought after consultant who brings humor, insight and real-world advice to his audiences. His practical, street-smart approach to selling has helped hundreds of investors, sales organizations, call centers, business owners, and independent professionals increase their revenue with more control, greater confidence and less effort.

Today I wanted to talk about how to handle negotiations with sellers so that we get the price we want and they feel good about the whole process.

This is an aspect of buying directly from motivated sellers that keeps a lot of people on the sidelines.

John shares with us today several tips for working with motivated sellers so that they feel good about the process and everyone gets what they want.

John’s first tip involves empathy.  You’ve got to have empathy for each and every seller and what they are going through.  Period.

Don’t hide what you’re feeling and how you feel about their situation.  Let them know that what they are going through is not easy and that you know it must be hard.

John’s second tip is to make use of price anchoring.  You’ve got to reset whatever initial price the seller is expecting to get so that your offer doesn’t hit them like a huge punch to the gut.  One way to do this is to share recent comps for nearby houses that have sold for low amounts. 

As you negotiate price, continuously lower the increment that you come up in your offer.  This will signal to the seller that you are nearing your max.  He also advises that you end with an odd number as your final as it appears to be your highest calculated offer.  Great tip!

If your max offer doesn’t do the trick, make non-financial concessions.  Offer to allow them to leave stuff they don’t want behind.

I asked John about common objections from sellers and how to handle them.  I absolutely love the approach he offered.

He doesn’t feel like there is ever any canned objection/counter that will work.  It’s always more of a situation by situation ordeal.  His approach is to find out the real reason for why they are selling and have them hash out what objections or problems they have with doing so. 

Then, understand that you can never overcome sellers’ objections.  They must overcome their own objections.  You can aid this by asking them questions that plays their objection against what they are trying to accomplish.  In this way, they will see that accomplishing the sale of the house and resolving the situation is much bigger than the smaller problem of the objection.

Jan 16, 2017

Bill Allen has been flipping for over 3 years now and has done an incredible amount of growing in that short amount of time.  He’s a full-time flight instructor for the Navy and has managed to grow a house flipping business from himself to a team running like a well-oiled machine.

I highly respect Bill and how he thinks.  He’s the type of guy that loves to think through all types of situations and coming up with solutions.  I think we’re wired the same.

In this episode, Bill shares with us how he got started.  We then go into how he analyzes deals.  His method of analysis is very similar to mine.

He uses the 70% rule of deal analysis for a quick idea of whether a deal is feasible or not and then goes into more detail.

A very important thing he mentioned was that the 70% rule works well for houses in the over $100k to about $180k range but not so much for anything outside of that.  I tend to agree.

His quick method for repair cost estimation is to use $20 per soft of the house and then add costs for major items on top of that.  Now, if a house needs major repair, this number will be low.  This is more for typical updating, not relocating walls and re-sheetrocking, etc.

Bill became a father again recently.  His son, James was born with a heart defect.  Though he’s been through a lot, James is doing well. 

You can read the story here on Bill’s blog: http://blackjackre.com/james/

Bill is an awesome father and person as he decided to set up donation page for the Children’s Heart Foundation and has pledged to match all donations.

This is incredible and I highly encourage everyone to make a donation.  There’s nothing more important than our kids and I can’t think of a better cause.

Please pledge a donation here: Bill’s Children’s Heart Foundation Donation Page: http://www.childrensheartfoundation.org/donate-now

Please be sure to leave a mention of your donation on Bill’s Facebook page so that he can match your donation: http://facebook.com/blackjackestate

Jan 9, 2017

Show notes can be found at http://flippingjunkie.com/59

Happy New Year! 2017.  Hustle

Goals. Have you set them? Go back and listen to:

Episode 18: [Foundation] 5 Steps To Setting and Actually Achieving Goals w/Marcus Maloney

 

Where the podcast is going

Finishing up series on investing

Mindset and foundation to get you prepared to be a real estate investor. 

Team Building

Funding

Marketing - 19 episodes - You need leads!

 

Coming up…

Deal Analysis

Estimating Repairs

Making offers

Follow up

Rehabbing

Selling houses

Wholesaling houses

Share more of the day to day.  My friend Erik always complains that I never talk about what I’m doing.  Everything is top secret and it drives him nuts.

What’s happening in 2017 - bringing the hustle back

House Flipping Business Goals

  • 108 deals (2/3 or more wholesale)
  • Growing team
  • Expanding online lead generation and testing
  • Melissa heading up the operation - me more consulting role

Real Estate Investor Software Business

  • Major improvements to LeadPropeller (editor improvements, custom forms, more services)
  • REImobile will be transformed to fit our operation better and focus on the needs of growing flipping businesses
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