Hey I’m back with the next video in our 4 part series teaching you how to rehab houses for HUGE paydays. In today’s video we are going to continue our walkthrough with my project manager(s) while they give you insider tips and tricks to fix-n-flip houses for less money. If you missed video #1 and need to catch up…CLICK HERE.
The biggest take-a-ways from this video (Part 2 of 4) are:
Most of you that follow my blog know that I love wholesaling houses for quick cash. It has been my favorite investing strategy for almost a decade now. But did you know that I cherry pick out the best deals, rehab them, and sell them for top dollar? In today’s blog post I will share a video where I break down the entire rehab process and document the exact steps you need to take in order to rehab houses for huge paydays!
In this first video (Part 1 of 4) I document one of my recent rehab deals that I recently flipped and made over $50,000 on! The property is located at 2210 W. Tonto Ln in Phoenix, Arizona. I purchased the property directly from a distressed seller for $73,151 (this included closing costs and all fee’s to buy the property) on 2/19/2013. I sold the property on 4/30/2013 for $167,500. Throughout the next couple of videos I will break down how I managed the project and all the expenses that went into the renovation!
A new report out from RealtyTrac.com, the nations leading tracker of foreclosures and distressed sales, shows the top 25 markets in 2012 to flip single family houses in. To create the list they looked at any single family homes that were purchased, then resold within a six month period. The markets with the most “flips” and biggest increase in prices during the six months made the list!
It’s no surprise to me that Arizona would rank #1 in terms of volume of flips. The real estate investing market here is going bonkers (can you say 2006 de ja vu), and even though our average gross profit per flip is a measly $63,762 
we dominated the list for both volume of activity (10,589), and % increase in home value (33%). California beat every other state out in terms of average profit per flip ($103,241 in San Jose, $85,714 in San Diego, and $80,306 in San Francisco), and Las Vegas, Miami, and Denver came in a respectable 3rd, 4th, and 5th in terms of volume of activity.
When creating a pay per click campaign or doing onsite SEO for your real estate investing website or blog one of the most important decisions you will have to make is which search phrases to target. Like a mindreader you will have to foresee what phrase or phrases your potential customers will input in the search engines when searching for your real estate services. Short tail keywords are small specific keyword search phrases used in a search engine to describe what a searcher is looking for. Some examples of short tail keyword are “real estate” and “short sale”. Long tail keyword phrases typically are more detailed and specific to your locality. Some examples of long tail keyword phrases are “McCormick Ranch Scottsdale Arizona Real Estate” or “Chandler Arizona Short Sale Realtor”. The goal is finding balance and focusing on your main “medium tail” real estate keyword phrase for your main page and then creating more detailed specific sub pages for your long tail keyword phrases.
According to Google Adwords Keyword Tool, the phrase “Real Estate” was searched 1,500,000 times in April 2013. It was the most heavily searched real estate phrase in America. ”House For Sale” was searched 668,000 times, and “Houses For Rent” was searched 469,000 times. Realtor.com, RealEstate.com, Homes.com Wikipedia.org, and Zillow.com are the top results on Google for these search terms and it would be nearly impossible to ever outrank any of these sites. Targeting general terms will surely generate leads, but are they the kind of leads you want? If you own a real estate brokerage in Chandler, Arizona then you will want to target local business or those looking to relocate to Chandler! Only a small fraction of the 1,500,000 that searched “Real Estate” want to look for homes in Arizona let alone Chandler, AZ.
Picture yourself out in a neighborhood “driving for dollars”. You come across a potential real estate investment opportunity and you want to learn more about the property. Well, now you can with a hot new real estate investing App called Homesnap. With over 90 million homes in the Homesnap database, with a simple click you can instantly learn what the house last sold for, when it sold, how many beds/baths, the square footage of the property, the lot size, estimated taxes, the school district, and even a map of the surrounding area. This is the same information that real estate agents have access to and the App even gives you a rough estimate (like Zillow rough) of the house’s value.
Right now the Homesnap Real Estate App is available for Iphone, Ipad (Android is coming soon).
What’s kewl about the real estate investing App (yeah I just said kewl) is that it uses your phone’s GPS to find your location so if you snap a photo, the App will automagically find you (yeah I just said automagically) and pull up MLS data of the subject property. If it has trouble finding you the App will seamlessly pull up a a map of the surrounding area and prompt you to pick a property.
Many of you who follow my blog probably have noticed I have been absent for about 2 months. Well…that is because I have been inside my secret lair creating the WORLDS GREATEST real estate investing training system EVER CREATED!!! I, like you, am sick and tired of boring real estate training products. So I decided to do something about it. So I wrote a script, hired some dudes from Hollywood, and produced a bunch of movies that teach you real estate investing (the Cody Sperber way). There is adventure, tons of laughter, and we even blow some stuff up!
I call it the Fast Track Profit System and it is basically me downloading everything I have in my head into a systematized course that teaches you how to do what I do.
So if you are interested in learning more about my Fast Track Profit System then jump on this special limited time webinar I am hosting. Register Here
Ohh…and Ms. Barbara Corcoran from ABC’s Shark Tank will be on the call. She is a true real estate mogul and has a great story to share with you about how she got started in real estate (and made 4 billion dollars)!
REGISTER FOR THE WEBINAR HERE —> www.PrivateVIPTour.com
See you on the webinar,
“Only when the tide goes out do you discover who’s been swimming naked!”
Warren Buffett
Hey it’s Cody Sperber back again and I have a question for you. ”Fast money spends fast.” You ever notice that?
Think of many of the people you saw “real estate investing” during the run up. Yes, they were making fast money, sometimes huge chunks of money. And because making the money was easy, they also thought it was limitless. They were spending it as fast as it came in – new car, trips with the requisite picture of them posing in front of a private jet, buying properties with financing that made no sense in any market. When the bust hit, these people were wiped out. And not just wiped down to zero. They were wiped down to below zero. Some will never recover financially.
Many real estate investors, in a desperate effort to make a lot of money fast, take risks that eventually (sometimes quickly) knock them out of the game. Real estate is a long term investment. Even if you’re flipping contracts, you want to create a business that you will be able to reap profits from for years, not for one quick season.
One of my early mentors was the late Jack Miller. Jack was an “old-school” real estate investor. He bought and held, making his money on cash flow and paying off his properties over time. He worked to free and clear his properties and created a real estate portfolio that set him and his family up for life.
Jack was also notoriously cheap. After a seminar, he’d host a “cheap wine party” for his attendees and he delivered as advertised. Box wine was the norm. Jack didn’t drive flashy cars or wear flashy clothes. He put his money where it would give him a good return on his investment.
In the world of wholesaling houses for fast money…cash buyers are king! And yes, even though I have a HUGE cash buyer database, every once in a while I send out a property that none of my current cash buyers have an interest in.
This was the case with my latest wholesale deal on Keim Dr. in Phoenix, Arizona. This was a 2001 sq. ft. 3 bedroom 2 bath house built in 1958 that needed a medium amount of rehab (mainly updating). I had the property under contract from a motivated seller for $105,000, and was marketing the property for sale for $125,000. I estimated the ARV of the property around $160,000 – $165,000 depending on what rehab was done to it.
But we received ZERO calls on the deal. :-(
So about 5 days later we lowered the “As-Is Cash Only” price down to $119,900.
And we received 3-4 calls, but no one ended up wanting the deal. :-(
So the next day we decided to use a “top secret ninja tactic” to find use a qualified cash buyer off the MLS.
HOORAY…2012 is behind us, the Fiscal Cliff has been avoided (at least for a couple of months), and the future for real estate investors is looking bright (as long as you know how to outsmart those BIG BAD hedge funds).
And if you are anything like me…you have some New Years Resolutions that you plan on keeping for at least 2-3 weeks!
The good news for you is I have a handy dandy tech tip for getting organized, staying productive, and feeling like you actually got something done at the end of the day.
Introducing the Any.Do App for Iphone and Android. This is the “award winning” smart phone app that reminds you to get things done. It’s simple to use, and elegant to look at. I really like it because it syncs with the cloud so no matter what device I schedule something on…my Any.Do app sends me a reminder to GET IT DONE! Plus it has a “talk-to-text” feature so I can add new tasks at lightning speed. Here’s a list of the features of the Any.Do APP:
BOOM…we’ve made it to our last blog post in our 4 part series on becoming a real estate mogul. If you need to catch up…
According to Wikipedia, a Mogul is defined as “an important or powerful person who has achieved wealth and prominence in a particular industry”. As a real estate educator, I believe that each one of us must evolve through 4 stages to achieve mogul status. Creating an empire doesn’t happen by accident and it will take the right education, the right relationships, and purposeful action on your part to achieve your dreams. In a moment I am going to cover the fourth and final stage (Becoming A Tax-Adverse, Passive Real Estate Investor). In this stage we transition from being “active” investors, to allowing our money to “go to work for us”. But before I do, I want to share my theory on how real estate investors evolve and let’s see if you can guess where you currently are, and visualize how much further you have to go in order to become a real estate mogul!
In 1940 famed Psychologist Abraham Maslow (famous for his Hierarchy of Needs Pyramid), theorized a concept he called the 4 Stages of Competence. The theory looked like this:
