Episode Details

Mike Simmons, from Just Start Real Estate, joins us and helps us understand the best way (or at least his best way) to get started as a new real estate investor and house flipper.  He really breaks it down and provides step-by-step processes you can follow to get started today!

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Show Notes

In this episode we cover:

• Mike's background with real estate starting in 2002 and why it took him 6 years to take action.
• The things you need to do when you first start with real estate.  (Take MASSIVE ACTION)
  • Commit the time to getting out there and start networking at REIAs
    • Tips to be a good networker
      • Dress nicely when you attend events
      • Smile and be presentable
      • Take action!  It will make it easier to talk to people and have them talk to you
    • Be mindful of who you tell — keep away from the negative influences
    • If you do tell people, you don't need to listen to their opinion
    • Give yourself time to get to know people
    • Be uncomfortable! It means you are going in the right direction.
  • Find an agent to help you start generating leads
    • Its not necessary to get your real estate license
    • Interview realtors and find out what they are able to do for you.
    • They should send you qualified leads that you care about.
    • You have to give them good, specific information about what you're looking for
    • Mike's method for getting in touch with realtors
      • Went on realtor.com and looked for properties that fit the criteria
      • Find the realtors that show up on the type of houses that you are looking for
      • Interview the realtors until you find the best fit
    • Treat your realtor with respect
    • You don't need to get in to detail about your business — just about what you're looking for
  • Make a short list of good contractors
    • One method: put an ad on Craigslist (with criteria) and provide a “new” email
    • Walk through a property with them together and get quotes based on what you want to do
    • You learn about rehabbing from contractors
    • The bids will give you an idea of the cost for rehabbing houses
  • Make offers based on the listings your realtor has been sending you (which meet your criteria)
    • You need to educate your realtor on calculating After Repair Value (ARV)
    • Go in to the listings for comparables and see what the houses look like
    • One possible formula: ARV * 0.7 – rehab = Offer
    • There are a lot of methods for finding a proof of funds (POF)
  • Get your financing taken care of
    • This is where you take advantage of those networks you have been building
    • Before you have a house under contract, be sure you have been seeking out financing possibilities
    • Once the house is under contract finding financing should be your full time job
  • Focus on direct mail when you have made some progress with your business
• Things you don't need to do Day 1
  • You don't need to start off forming a corporation in the beginning
  • Business cards are not a priority
  • Logo and brandi