Podcast Summary
Taking Action and Building Skills for Real Estate Success: Ignoring self-doubt and taking action, along with hiring help and learning from experts, are crucial for achieving success in real estate.
Learning from this episode of the Bigger Pockets Podcast is the importance of taking action and building skills to achieve success in real estate. The guest, Dominique, shares her experience of overcoming initial doubts and building a successful business through hiring help and learning from experts. The podcast also provides valuable insights on managing long-distance rehabs, building a buyers list, and investing along the San Andreas fault line. However, the key message is that knowledge alone is not enough, and it's essential to take action and put that knowledge into practice. The quick tip emphasizes the importance of not just learning but also doing, and the episode serves as an inspiring example of someone who found success by ignoring self-doubt and taking action.
Exploring Accessible Real Estate Investing: DealMachine, Rent to Retirement, and Host Financial: Innovative tools and strategies like DealMachine, Rent to Retirement, and Host Financial make real estate investing more accessible and easier, offering contact info for off-market deals, no-money down rental properties, and simplified mortgage processes.
There are innovative tools and strategies available to make real estate investing more accessible and easier. DealMachine offers a treasure trove of contact information and phone numbers for off-market deals, while Rent to Retirement allows investors to buy new construction rental properties with no money down. Additionally, Host Financial simplifies the mortgage process with easy qualification requirements. Young investors like Dominique, who started at 17, demonstrate the potential for success through hard work and determination, using various strategies like wholesaling, self-funded flipping, and off-market deals. Overall, these resources and approaches can help investors grow their portfolios more efficiently.
Young age inspires real estate success: Starting in real estate young can lead to significant success through determination, learning, and experience.
Passion and determination at a young age can lead to significant success in real estate. The speaker, who was introduced to real estate at age 15, was inspired by his mother's purchase of a rundown property and the potential to add value to it. He worked for a successful real estate agent to learn the basics before starting his own wholesaling business at age 19. In just 1.5 years, he closed between 40-45 deals, demonstrating impressive growth. His motivation was a combination of a desire for experience, learning the ropes, and the potential for wealth creation. This story highlights the importance of seizing opportunities and being persistent in pursuing one's goals.
Building deep relationships with buyers is key to success in wholesaling: Meeting buyers in person, understanding their needs, and establishing trust led to deals and business growth for the speaker
Building a strong buyers list and developing deep relationships with them was crucial to the speaker's success in wholesaling real estate. The speaker emphasized the importance of meeting buyers in person and understanding their needs to build trust and establish a reputation as a reliable and successful wholesaler. This approach led to several deals being passed on to the speaker, allowing her to expand her business and increase her success in the wholesaling space. Despite being young and a female in a male-dominated industry, the speaker's determination and unique perspective helped her overcome any potential challenges and make a name for herself.
Using uniqueness to overcome challenges in real estate investing: To succeed as a real estate investor, hustle is important but investing time in learning the market and understanding deals is equally crucial. Focus on off-market deals and unique strategies to stand out from competition.
While facing challenges as a young and inexperienced real estate investor due to her appearance, Dominique used her uniqueness to her advantage by building her knowledge and expertise to gain the trust and respect of potential buyers and sellers. The hustle is essential, but it's equally important to invest time in learning the market and understanding the deals to instill confidence in those you work with. To stand out from the competition, Dominique advises focusing on off-market deals and creating a unique list of potential properties by using various strategies, such as networking and direct mail, instead of relying on publicly available lists that are commonly targeted by other investors.
Effective Strategies for Building Relationships and Finding Off-Market Deals in Real Estate: Networking with industry professionals, email blasts, direct mail, Facebook groups, and attending local auctions are effective strategies for building relationships and finding off-market deals in real estate.
Building relationships and networking in the real estate industry can lead to a steady stream of off-market deals. Here are some effective strategies: 1. Networking with realtors, wholesalers, and local people in your market: Attend networking events, cold call real estate agents, and build relationships with people in the industry. Offer value and keep in touch with them regularly. 2. Email blasts: Send targeted emails to real estate agents, wholesalers, and other professionals in your market. Offer value and let them know about your current inventory. 3. Direct mail and cold calling: Create targeted lists and reach out to sellers directly. Make sure your approach adds value and stands out from the competition. 4. Facebook groups: Join Facebook groups for real estate investors, agents, and wholesalers in your market. Engage with members, offer advice, and build relationships. 5. Local auctions: Attend local auctions at the courthouse or sheriff's sale. These events can provide opportunities for off-market deals and building relationships with other investors and professionals. Overall, building relationships and networking in the real estate industry can lead to a steady stream of off-market deals. By using a combination of these strategies, you can expand your network and find great investment opportunities.
Finding the right team is key to out-of-state fix and flips: Building a strong team of a good realtor and trustworthy contractor is essential for successful out-of-state fix and flips.
Successful out-of-state fix and flips require a strong and reliable team on the ground. The speaker, who lives in Los Angeles but invests in New Orleans, emphasizes the importance of a good realtor and a trustworthy contractor. Finding the right contractor can take time and involve some trial and error, but it's crucial to have someone who matches your communication style and is willing to keep you updated regularly since you won't be on-site every day. The speaker's success in managing out-of-state properties comes from building a strong team that he can trust to execute the renovation and sell the property.
Assessing contractor suitability through initial communication and small jobs: Observe promptness, interest level, organization skills during initial communication. Hire for small jobs to assess work quality, communication style, and responsibility before larger projects. Have a reliable project manager to ensure smooth execution.
Finding the right contractor for a real estate project can be challenging, but there are ways to identify good candidates early on. During the initial communication, observe how promptly they respond, their interest level in the project, and their organization skills. However, it's essential to give them a small job to assess their work quality, communication style, and responsibility before committing to a larger project. Additionally, having a reliable project manager on the team can help handle various tasks and ensure smooth project execution. As for the motivation to tackle the challenges of real estate, Dominique's drive comes from her entrepreneurial spirit, love for the hunt, and the joy of making a difference in people's lives through affordable, beautiful homes.
Learning from Unexpected Challenges: Even with the right mindset and most things done right, unexpected challenges can still occur in real estate investing. Embrace the struggle, learn from failures, and find joy in the learning process to grow as an investor.
In real estate investing, there will always be unexpected challenges that require personal growth to overcome. Dominique shared her experience of learning the hard way that even if you do almost everything right, one small mistake can derail a deal. She emphasized the importance of having the right mindset, accepting that you won't know everything from the start, and being open to learning new things every day. Her advice is to embrace the struggle and find joy in the learning process, knowing that with experience, you'll become the expert helping others. She also shared a personal story of her first wholesale deal, where she was caught off guard by the complexity of the process and had to rely on others for guidance. Ultimately, she learned that failure is a valuable teacher, and it's through uncomfortable situations that we grow the most.
Managing out-of-state rehabs: Challenges and solutions: Build a strong team to navigate out-of-state rehab challenges, including unpredictable permits and finding reliable personnel.
Managing out-of-state rehabs involves dealing with various challenges, such as permits, which can be unpredictable and require physical presence in some cases. However, many processes can now be done remotely, and project managers can be hired to handle tasks on your behalf, making the process more convenient. It's important to note that project managers are independent of contractors to ensure unbiased management. Long-distance investing, including wholesaling, requires finding reliable boots on the ground personnel, contractors, and agents, which can be challenging for new investors. Despite the challenges, the process is simple but not easy, and the key is to build a strong team to help navigate the complexities.
Underestimating rehab costs can harm profits: Clear communication and basing calculations on current market values are essential for accurately estimating rehab costs during the purchasing stage.
Accurately estimating the cost of a property's rehab is crucial for a successful real estate business. This is especially important during the purchasing stage, as overpaying for a property can negatively impact profits, regardless of the quality of the rehab. The speaker shared their personal experience of learning this lesson the hard way and emphasized the importance of clear communication with on-site personnel to gather as much information as possible. Additionally, the speaker emphasized the importance of basing calculations on current market values rather than potential future value fluctuations.
Passive Income from Real Estate through Mortgage Funds: Earn passive income by lending to house flippers through mortgage funds like Pine Financial Group, with targeted returns and community revitalization benefits.
Real estate investing offers various opportunities, including passive income through funds like Pine Financial Group's mortgage fund. This fund provides a targeted 8% preferred return and 70% of net profits to investors, allowing them to earn passive income by lending to house flippers. The investment is secure due to senior lien holder status and a rigorous underwriting process. Additionally, investing with Pine Financial Group supports community revitalization. For those who prefer a hands-off approach, this is an attractive option. Another takeaway is the importance of addressing concerns and finding solutions, such as with home security from SimpliSafe. This system offers peace of mind through high-tech sensors, indoor and outdoor cameras, professional monitoring, and a money-back guarantee. Lastly, success in real estate investing often involves being competitive and striving to exceed the quality of competitors' renovations.
Make the property stand out with small upgrades: Small upgrades can significantly increase a property's appeal and value. By opting for more expensive, trendy materials, renovators can attract multiple bids and sell properties quickly.
To make a property stand out in the market and sell for top dollar, it's essential to be at least one or two steps above the competition. This can be achieved by making small upgrades that make the property feel more expensive. For instance, when choosing kitchen cabinets, opting for the more expensive trendy color can make a significant difference in the property's appeal and value. This concept, known as "buying, rehabbing, renting, refinancing, repeating," suggests that the cost difference between materials is often minimal from a labor perspective but can result in a higher sale price. By considering what the competition is doing and finding ways to do it cheaper but still more elegantly, renovators can attract multiple bids and sell properties quickly.
Investing in high-quality materials or prime locations can lead to significant returns.: Spending extra on valuable areas or top-notch materials can yield substantial rewards, especially in master bathrooms. Successful long-distance investing relies on building a strong team, market knowledge, and quick action.
While it's important to be mindful of costs, especially in larger projects, it's worth spending extra for high-quality materials or prime locations in certain situations. For instance, investing in a small, high-value area like a master bathroom can lead to significant returns. Additionally, successful long-distance real estate investing doesn't necessarily require reading books on the subject; it's about building a strong team, knowing the market, and taking action. Dominique's experience of securing a property off-market through a personal connection and quick negotiation is a great example of the importance of speed and local knowledge in the industry.
Unexpected challenges in real estate investing: Be prepared and adaptable for unexpected challenges in real estate investing, and remember that every deal comes with its unique set of obstacles. Extra caution is required when investing in high-risk areas.
Real estate investing involves unexpected challenges, and being prepared and adaptable is key. The speaker shared a personal experience of investing in a fix and flip property that was hit by a hurricane, causing significant damage and adding to the budget. Despite this setback, the deal still turned out profitable. This experience taught the investor to always be open and ready for any obstacles that may come, even those that are completely out of one's control. It's important to remember that every real estate deal comes with its unique set of challenges, and it's essential to be flexible and resourceful in navigating them. Additionally, investing in high-risk areas, such as flood zones, requires extra caution and preparation.
Considering the impact of flood zones on buyers: Investing in flood zone properties may require buyers to pay for flood insurance, potentially making the property less attractive and increasing monthly payments.
If you're investing in a property that is located in a flood zone, it's important to consider the impact it may have on your end buyer. While the risk of flooding may not be high during the renovation process, the requirement for flood insurance from lenders can add significant costs to the buyer's monthly payments. This could potentially make the property less attractive to some buyers, especially those who are already in a tight financial position. Therefore, it's crucial to factor in this additional cost when determining the purchase price or targeting potential buyers. Additionally, investors can consider purchasing flood insurance themselves during the holding period to mitigate their own risk. Overall, being aware of the flood zone status and its implications for buyers can help investors make informed decisions and potentially increase the property's resale value.
Success in private money lending requires building trust and a strong desire to succeed in real estate: To succeed in private money lending, build trust with lenders, have a strong desire for real estate, read 'Raising Private Capital' and 'Story Worthy', and effective communication.
Private money lending offers flexibility in terms of loan terms, but building a track record and trust with lenders is crucial. Dominique Gunderson, a successful real estate investor, emphasized the importance of wanting real estate specifically and having a strong desire to succeed in the industry. She recommended the book "Raising Private Capital" by Matt Faircloth for those looking to transition from self-funding or hard money into private money lending. Gunderson also highlighted the value of effective communication, as discussed in the book "Story Worthy" by Matthew Dix. Additionally, she enjoys hobbies such as surfing and traveling, and her husband served in the Navy. To learn more about Gunderson, listeners can find her on Bigger Pockets under her profile name Dominique Gunderson or on Instagram at Dom Flips NOLA.
Take Action and Find a Mentor in Real Estate Investing: Find a mentor, learn new skills, and take action, no matter how small the step, to start investing in real estate for financial freedom. Utilize BiggerPockets Agent Finder to find an investor-friendly agent for guidance.
Taking action is key in real estate investing. Dominique emphasized the importance of finding someone to mentor and learning new skills, even if it means stepping out of your comfort zone. She encouraged listeners to stop consuming information and start taking action, no matter how small the step. Rob added that finding an investor-friendly agent can help navigate the market and increase confidence in making real estate investments. With BiggerPockets Agent Finder, finding the right agent can be done quickly and easily. Remember, the market may change, but the goal of financial freedom remains the same. Don't let fear or uncertainty hold you back. Take action today. Additionally, it's important to note that investing in real estate, or any asset, involves risk. Be sure to consult with qualified advisors before making any investment decisions and only risk capital you can afford to lose. The content of this podcast is for informational purposes only and past performance is not indicative of future results. BiggerPockets LLC disclaims all liability for any damages arising from reliance upon information presented in this podcast.
