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Learn how to make money in real estate. We cover news, trends, styles, markets, demographics, and technology that affect real estate investing. We also talk to market leaders and trend setters. Lastly, there's a bit of how-to information on nearly every show, with topics, Q&A from listeners, and presentations from our guests. Learn how to make and grow a fortune in your spare time or as a new career.

May 31, 2019

A few days ago we got a question from Lamar asking, “What questions should new investors be asking?” We liked the question so much we decided to make an entire episode out of it. We conducted a survey online and got some interesting responses which I will share plus I will weigh in. Here’s why this is important. If you are new, you need to make sure that your first project has the best chance of succeeding. In order to do that, you must engage in risk mitigation. And how do you do that? Ask questions. Ask a lot of them. Don’t be afraid to be new. Everyone was at some point. The question may be obvious, even to you, but ask it if you don’t know or are unsure. Today I’m going to focus on questions that may not be so obvious to you, the newbie, that we all wish we WOULD have asked if we had known.

Plus we have news about the world of real estate coming up in just a few minutes.

How to contact us

www.RogerBlankenship.com

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Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question.

Email your questions to questions@rogerblankenship.com. Please always tell us where you are from. We like to know where the show is being heard. And let us know how you found out about us if you don’t mind.

Announcements:

  • Lunch with me every Wednesday. Baraonda
  • My latest article in Forbes is out. bit.ly/findredeals.
  • The FAN is here!
  • Would you like to invest in the Flipping America projects across the country? Coming soon you will be able to for as little as $100. That’s right, Flipping America is partnering with Ground Floor Funding to create a crowd-funded platform where you can invest in the deals we are doing here. The fund will pay out a 8% preferred rate of return and can go as high as 16%. You can make money with me, the Flipping America Guy.
  • Flipping America App is in the app store. You can listen to the show, read the show notes, and the entire catalog of shows is now available to you. It’s a free download and there are no upsells or in-app purchases. Free to download, free to listen. Go ahead and give it a try and drop me a line and let me know what you think.
  • Want a quick analytical tool to tell you how strong a potential fix and flip deal is? Download the Property Grade app. You answer 10 simple questions about the property and the app instantly tells you what you can expect to make, your return on investment, your return on cash, and then the program gives the project a letter grade using the proprietary Flipping America Investment Property Grade algorithm.  

Real Estate News-

Local News

The biggest mall owner in the US ‘can’t guarantee’ there won’t be more retail wreckage this year

https://www.cnbc.com/2019/04/30/us-mall-owner-simon-property-group-reports-first-quarter-2019-earnings.html

One of the most valuable malls in America is getting a makeover

https://www.cnbc.com/2019/04/30/westfields-garden-state-plaza-mall-is-getting-a-makeover.html

Rising rents for Millennials give rise to a new breed of lender

https://www.realtor.com/news/real-estate-news/rising-rents-for-millennials-give-rise-to-a-new-breed-of-lender/

CIM Group has announced that its $5 billion development of apartments, offices, hotels and retail at The Gulch will be called Centennial Yards.

https://atlantaintownpaper.com/2019/05/real-estate-briefs-gulch-project-named-centennial-yards/

National News

Do you consider your home a great investment?

https://www.cnbc.com/2019/05/22/do-you-consider-your-home-a-great-investment-think-again.html

26 year old millionaire investor talks about the mistakes he made while buying homes

https://www.cnbc.com/2019/05/23/self-made-millionaire-investor-dont-make-the-huge-homebuying-mistake-i-made.html

Home sales fell in April despite a big drop in mortgage rates

https://www.cnbc.com/2019/05/21/home-sales-fell-in-april-despite-a-big-drop-in-mortgage-rates.html

The most splendid housing bubbles in America

https://seekingalpha.com/article/4258900-splendid-housing-bubbles-america-april-update

International News

Real Estate firm names the top cities for risk-seeking investors

https://www.cnbc.com/2019/05/01/real-estate-firms-names-the-top-cities-for-risk-seeking-investors.html

China-owned tower in New York City reportedly wouldn’t let Amnesty International move in

https://www.cnbc.com/2019/05/14/china-owned-nyc-tower-reportedly-blocked-amnesty-international-lease.html

Venture Capital flows between China and the US surpass direct investment for the first time

https://www.cnbc.com/2019/05/08/venture-capital-flows-between-us-china-surpass-direct-investment.html

The Questions new investors ought to be asking:

  • From our friends:
    • Bryan “How do I determine the finished value of my flip home before I begin repairs?
    • Cindy “Could my resources (time, money, skills, etc) produce a better outcome sooner if used elsewhere?”
    • Stewart “How do you quickly determine the cost of repairs to determine if it's a good deal or not? (I'm assuming there's other interest and there's little/no time for due diligence)”
    • Tom: “Why am I doing this? The answer has to be more than ‘make money.’”
    • Victoria: “Do the numbers really work or am I working the numbers?”
    • Jeff: “Am I prepared to lose the money I am investing? Never invest money you can't afford to lose.”
    • Damion: “How do you pull comps if you’re not a realtor?”
    • Pat: “Is there an app that includes both repairs AND comps?” :)
  • From Roger:
    • What type of investment is this? (one time income, cash-flow, appreciation, speculation?)
    • When should I expect to see returns?
    • How liquid is my cash?
    • How could this deal bite me in the fanny? In other words, What are the risks and how are they mitigated?
    • What happens if things get sideways?
    • What are the numbers I need to know and how can I know them?
    • What’s Plan B?
      • Pricing alternative
      • Alternative funding source?
      • Alternative exit strategy?
      • Backup Contractor?
    • What is the pricing trend (rents or sales, depending on your exit plan)?
    • For flips, what is the average DoM for this price range in this area?
    • For rentals, what is the long-term outlook for this neighborhood? Which way is it heading? (the best hoods are those that are immune to value swings)
    • For rentals, how are the schools?
    • For AirBnB, are there any rumblings in local government that threaten this business model?
    • If investing cash in someone else’s deal
      • What is that person’s experience?
      • What is that person’s reputation?
      • Do we have values alignment?

Questions

  • Sandra, Kansas City, MO, “How do you get in and see all the properties around the country you and your investors are buying?”

Comment Line calls and Questions

Call 404-369-1018, press 1 and leave your message!

Motivational Thoughts for the day

  • “It does not matter how slowly you go as long as you do not stop.”
  • - Confucius