Podcast Summary
The Power of Taking a Break: Taking a break from work can lead to personal rejuvenation and professional success. Absence from work doesn't hinder deals and can result in new opportunities upon return.
Taking a break from work can lead to personal rejuvenation and professional success. Josh Dorkin, the host of the Bigger Pockets Podcast, shared his experience of taking a long-awaited vacation after nine years of non-stop work. Surprisingly, the week he was away was also the week he had the best real estate week of his life. His absence from work did not hinder deals from being made. Instead, he returned feeling refreshed and excited about new opportunities. Additionally, a new feature on the BiggerPockets Rental Property Calculator allows users to input the sales percentage when selling a rental property, which now displays the overall return or total return, incorporating the idea that property value may increase and loans are paid down over time.
Investing in Turnkey Rentals with No Money Down: Leverage Rent to Retirement for discounted, financed turnkey rentals. Use DealMachine for lead gen and RentReady for property management software.
There are opportunities to invest in brand new construction turnkey rental properties with no money down through Rent to Retirement. They offer discounted prices and low-interest investor loans with minimal down payment requirements. DealMachine provides unlimited access to contact information for lead generation, and RentReady offers comprehensive property management software with tenant screening and proof of income verification. These tools can help investors streamline their investment process. Additionally, the BiggerPockets podcast offers valuable insights and inspiration from experienced real estate investors.
From failure to success in real estate: Despite initial setbacks and doubts, determination and learning from mistakes led to success in real estate with the right support system
Even when faced with challenges and setbacks, determination and the right guidance can lead to success. The guest speaker shared his experience of starting in real estate after hitting rock bottom and being a failure in sales. He was encouraged by his brother, who pulled him through despite his initial resistance and doubts. However, his first mailing campaign failed due to a mistake, but he learned from it and built a cash buyer list. Eventually, he sold his golf cart to fund his next investment, which led to his first successful deal. This story highlights the importance of persistence, learning from mistakes, and having the right support system.
Lessons learned from first real estate deal: Making mistakes is natural in real estate investing, but maintaining a progress-not-perfection attitude can lead to valuable lessons and successful deals. Stay focused, network, and take imperfect action to achieve your goals.
Starting out in real estate investing, making mistakes is inevitable, but with the right attitude and persistence, those mistakes can lead to valuable lessons and successful deals. The speaker shared his experience of making numerous mistakes during his first deal, including attending the closing instead of assigning the contract, and even befriending an agent who later became a buyer. Despite these mishaps, he managed to make a profit and was encouraged to continue. He emphasized the importance of having an attitude of progress not perfection, which allowed him to learn from his mistakes and keep moving forward. In his first 18 months, he closed over 100 wholesale deals, a feat achieved by staying focused, networking, and taking imperfect action.
Master one marketing channel for real estate deals: Commit to one marketing strategy, understand seller needs, and build a solid list to increase chances of profitable deals.
Focusing on one marketing channel and mastering it is key to finding real estate deals effectively. The speaker, who has had success with direct mail, emphasizes the importance of avoiding distractions and shiny object syndrome by fully committing to one strategy. He also highlights the importance of understanding the seller's needs and providing valuable services to them, which is crucial in starting with a good deal. Beginners may not understand the concept of a list in real estate, but it refers to a targeted group of potential sellers or buyers for a specific marketing campaign. The speaker advises starting with a solid list and consistently executing a marketing strategy on that channel to increase chances of finding profitable deals.
Targeting motivated sellers without agents: Real estate investors can increase their chances of success by focusing on motivated sellers with significant equity, found on accurate lists from reliable sources, such as ListSource.
Successful real estate investors understand the importance of targeting motivated sellers who don't necessarily want to use a real estate agent. These sellers can be found on lists based on specific criteria such as age, equity, and property type. Contrary to popular belief, owner-occupied homes can also yield profitable deals. The most effective lists are those that have a high conversion rate, meaning the investment made in mailing the list yields a significant return. ListSource is considered to be an accurate source for this type of data. The first list to mail is typically an equity list, which targets homeowners with a significant amount of equity in their homes. Other criteria may include the age of the homeowner, the last market sale date, and property type. By focusing on these motivated sellers and using accurate data from reliable sources, real estate investors can increase their chances of success.
Effective Lists for Real Estate Investing: Focusing on closed code violation lists and tax delinquent lists can lead to high conversion rates and motivated sellers, while monitoring garage sales can uncover hidden opportunities.
Utilizing specific lists for real estate investing can significantly increase deal flow and potential profits. Two effective lists mentioned were closed code violations and tax delinquent lists. For closed code violations, focusing on closed rather than open violations can lead to better conversion rates, possibly due to the fact that the property owners have already addressed the issues. Tax delinquent lists, which are often overlooked, can yield highly motivated sellers who are behind on their property taxes for at least two years. These sellers are often desperate to sell and can provide excellent opportunities for investors. Another lesser-known list is the garage sale list. By monitoring local garage sales and targeting those with different mailing addresses from the property address, investors can potentially find motivated sellers who are in the process of moving out and selling their belongings. Overall, these lists can provide a wealth of opportunities for real estate investors and should not be overlooked.
Finding Cost-Effective Real Estate Investments with Virtual Assistants: Utilize virtual assistants for data entry tasks, check garage sale lists for absentee owners, outsource data entry work on Upwork, use inheritance lists for potential leads, and simplify transactions with mobile notaries.
Investing in real estate can be a cost-effective endeavor even on a tight budget, and utilizing virtual assistants for data entry tasks can lead to consistency and efficiency. One strategy for finding potential landlord leads is by checking garage sale lists for absentee owners, and outsourcing data entry work to virtual assistants through platforms like Upwork can save entrepreneurs time and energy. The inheritance list from US Lead List is also a valuable resource for investors, as it provides access to individuals who have recently inherited properties and are ready to sell. However, it's important to note that deals involving inherited properties may involve multiple siblings, requiring the use of mobile notaries to simplify the transaction process. Overall, implementing systems, outsourcing tasks, and utilizing reliable resources can lead to successful real estate investments.
Remote notarization for real estate transactions: Understanding probate and pre-probate processes leads to valuable deals. Remote notarization enables transactions with remote participants. Motivated sellers can be found through various methods, including subscription sites and arrest records.
Technology now allows for remote notarization, enabling real estate transactions with participants in different locations. This method, while not widely known, has proven successful for investors. Another key takeaway is the importance of understanding the probate and pre-probate process. Probate refers to the process where a home goes into a state of probate after someone passes away, giving creditors time to make claims against the estate. Pre-probate is the stage right before probate, where the home is about to go into probate. Both lists are valuable for investors, as they can lead to deals. It's essential to know the basics of probate and pre-probate to effectively communicate with sellers and help them find solutions to their problems. Additionally, finding motivated sellers through various methods, such as subscription sites or arrest records, can lead to successful deals. However, it's crucial to remember that the specifics of obtaining arrest records vary from place to place and may not always be easily accessible online.
Effective follow-up and a strong database are essential for real estate success: Direct mail can be an effective marketing tool, thorough tenant screening is crucial, large portion of deals come from older leads, partner with a trusted company for investments, and streamline business processes with online platforms
Effective follow-up and a strong database are crucial elements for real estate success. Direct mail, although often overlooked, can be an effective marketing tool in today's challenging MLS environment. The goal is to convert every lead into a yes or no, ensuring a manageable follow-up process. A large portion of deals are now coming from older leads, highlighting the importance of consistent follow-up. Additionally, thorough tenant screening is essential for successful property management. RentReady's new feature, proof of income verification, simplifies the screening process, allowing landlords to make informed decisions. Lastly, when investing capital, partnering with a trusted company with a proven track record is vital. BAM Capital, with its impressive history of delivering high returns and consistent distributions, is an attractive option for accredited investors. Furthermore, opening a business bank account for a property can be streamlined with online platforms like Relay, saving time and hassle.
Maximizing Direct Mail for Real Estate Deals: Consistently investing in direct mail, focusing on equity lists, and maintaining a regular mailing schedule can lead to a steady stream of real estate deals.
Consistent and frequent use of various lists for direct mail marketing can lead to a steady flow of real estate deals. The speaker, who is a successful real estate investor, emphasizes the importance of investing a significant amount in direct mail, spending what you make on one deal per month, and maintaining a consistent mailing schedule. The largest and most consistent deals come from the equity list, but the majority of deals come from owner-occupied properties. The speaker sends around 15,000 to 20,000 pieces of mail per month in a small market and sees an average of 2 weeks to 2 months between mailings. The use of different types of mail, such as postcards and letters, can also yield different types of leads. The speaker suggests a mailing schedule of once every 2 months as a good rule of thumb.
Persistence and motivation key to real estate success: Response rates for direct mail campaigns range from 1-3%, focus on one marketing channel for beginners, each deal leads to new opportunities, believe in deal availability and take consistent action
Finding success in real estate investing requires persistence and motivation. According to the expert, response rates for direct mail campaigns can range from 1 to 3 percent, with potential returns varying greatly. The business can be affected by various factors such as seasonality, demographics, and market conditions. For beginners struggling to find deals, the expert suggests adopting a motivated mindset and focusing on one marketing channel to maximize results. Even if starting small, each deal leads to new opportunities and growth in the industry. Remember, the key to success is believing in the availability of deals and taking consistent action towards finding and closing them.
Choose one marketing channel and master it legally: Focusing on one real estate marketing channel and mastering it legally can lead to successful deals, while avoiding negative impacts on industry image through illegal practices.
Focusing on one thing and doing it legally and with determination can lead to successful real estate deals. Josh emphasized the importance of choosing a marketing channel and mastering it, while also adhering to the laws and regulations. He cautioned against the negative impact of illegal or excessive use of bandit signs on the real estate industry's image. The One Thing philosophy was also mentioned, encouraging investors to focus on the deal and the very first step towards getting it, rather than getting bogged down in unnecessary details or distractions. Long-term, Josh plans to continue buying rental properties and aims to reach the financial freedom number.
Successfully Wholesaling with a Minimal Workload: Find off-market deals directly with sellers, network for affordable deals, ensure land ownership, and contact a title company for closing process
Tom, a successful real estate investor, has built a business with a minimal weekly workload of 5 hours through focusing on wholesaling and automating processes with the help of a few team members. He emphasizes the importance of finding off-market deals directly with sellers rather than relying on MLS listings. For beginners, he suggests looking for affordable deals through networking and ensuring the mobile home owner actually owns the land the home is on. Lastly, he advises contacting a title company once a property is under contract and a cash buyer is found to initiate the closing process.
Build strong relationships with real estate experts: Approach professionals with humility, involve title company early, rely on them for unexpected liens, and read 'The 4 Spiritual Laws of Prosperity' and 'Traction' for success
In the world of real estate investing, it's important to build a strong network of experts to help guide you through the process. This includes agents, property managers, title companies, and brokers. Instead of trying to be a slick car salesman, approach these professionals with humility and a willingness to learn. By positioning yourself as a servant and an underdog, you'll find that people are more likely to root for you and offer their expertise. Additionally, it's crucial to involve a title company early in the process to help ensure a smooth transaction. They can provide valuable insights and save you from potential issues down the line. As for dealing with unexpected liens on properties, it's best to rely on the title company to conduct a thorough search. By building strong relationships with these key players in the industry, you'll increase your chances of success in real estate investing. Furthermore, the speaker recommended two books - "The 4 Spiritual Laws of Prosperity" for real estate and "Traction" for business. Both were described as game changers that brought supernatural power to their respective fields.
Mistakes are opportunities to learn and grow: Successful real estate investors don't let fear of mistakes hinder their progress. Instead, they view mistakes as learning experiences and continue to take imperfect action.
Successful real estate investors are not afraid of making mistakes. According to Tom Kroll, mistakes are opportunities to learn and grow in the industry. Kroll, a wholesaling expert, emphasized the importance of taking imperfect action and not waiting for perfect planning. He shared his own experience of being kicked out of college for having a child too early and turning his life around to become a successful real estate investor. Kroll also encouraged listeners to check out his podcast, Wholesaling Inc., and website, wholesalinginc.com, for resources on crushing wholesaling. Overall, the key takeaway is to not let fear of mistakes hold you back from pursuing real estate investing. Embrace the learning process and keep moving forward.
Find the right real estate agent for your investment goals: Easily connect with local market experts through BiggerPockets Agent Finder to navigate real estate market complexities and make informed investment decisions
Finding the right investor-friendly real estate agent can significantly help you navigate the complexities of the real estate market and move closer to financial freedom. With BiggerPockets Agent Finder, you can easily connect with local market experts who understand your investment goals and can provide valuable insights to help you make informed decisions. Remember, the best investors focus on time in the market rather than trying to time the market. So, if you're looking to get started in real estate investing or expand your portfolio, head to biggerpockets.com/deals and enter your investment preferences to find an agent who fits your needs. This free resource is a valuable tool to help you make confident investment decisions and build long-term wealth.
