Joplin & Springfield Real Estate Investor Association

          It seems like every new Wholesale School student immediately stumbles upon a landlord who wants to sell ALL of his properties, then wants to know how to tackle a package of 4, or 9, or 37 single family homes all at once. And they're already rented, and the don't need any work, and the new wholesaler is excited because this looks like a deal that could make tens of thousands of dollars all in one fell swoop.

          These deals are problematic for a number of reasons:

1. I rarely see one where the landlord isn't asking more-than-market for the properties. He's willing to sell, but isn't really anxious to sell
2. It's basically never the case that the houses don't need work. Yes, I KNOW there's someone living in them. That doesn't mean that the roofs aren't 22 years old, or that the furnaces work consistently, or that they won't need a $5,000 turnover when that tenant inevitably moves out.
3. Each property has to be evaluated separately, which is a LOT of evaluation for a deal that's unlikely to come together.
4. Coordinating a single buyer to buy a whole package of non-turnkey properties, especially if they're in different parts of the city, isn't easy. Coordinating 9 buyers to close 9 properties on the same day is even harder.

          If you find one of these deals, here's how I suggest approaching it:

• First, get a list of addresses, rents, and major repairs/upgrades neede ... Read More…

        It seems like every new Wholesale School student immediately stumbles upon a landlord who wants to sell ALL of his properties, then wants to know how to tackle a package of 4, or 9, or 37 single family homes all at once. And they're already rented, and the don't need any work, and the new wholesaler is excited because this looks like a deal that could make tens of thousands of dollars all in one fell swoop.

        These deals are problematic for a number of reasons:

1. I rarely see one where the landlord isn't asking more-than-market for the properties. He's willing to sell, but isn't really anxious to sell
2. It's basically never the case that the houses don't need work. Yes, I KNOW there's someone living in them. That doesn't mean that the roofs aren't 22 years old, or that the furnaces work consistently, or that they won't need a $5,000 turnover when that tenant inevitably moves out.
3. Each property has to be evaluated separately, which is a LOT of evaluation for a deal that's unlikely to come together.
4. Coordinating a single buyer to buy a whole package of non-turnkey properties, especially if they're in different parts of the city, isn't easy. Coordinating 9 buyers to close 9 properties on the same day is even harder.

        If you find one of these deals, here's how I suggest approaching it:

• First, get a list of addresses, rents, and major repairs/upgrades needed on each property. I ... Read More…

            Go to any real estate association anywhere in the country, and you’ll meet endless excited folks who are sure that their futures—and fortunes—lie in wholesaling houses. Go back 6 months later, and you’ll find that 90% of those folks have never successfully closed a deal. In most cases, this isn’t due to “inactivity” or “fear” or any of the usual excuses. Many of these folks have actually tried and failed, to make a go of it. In my experience, there are 3 main reasons for this:

1. They don’t understand WHY wholesalers make money. They understand, at least in a basic sense, HOW it happens: you put a deal under contract, and you find someone who wants to pay more than you did, and that “more” is your profit.

But they don’t understand something very basic: that buyers don’t just write a check because the deal is available, or cheap, or even because it’s cheaper than other properties that might be for sale in the same area.

Buyers for wholesale deals are real estate investors, right? So, in order to be interested in a deal, the deal can’t just “make money”; it has to make ENOUGH money to provide a satisfactory return for the cash, hassle, time, and energy, that the buyer will have to put into it. No investor buyer HAS to buy a house this week; if he doesn’t see one that gets him a return tha ... Read More…

The concept of “branding” is an elusive topic.

Many are of an opinion of what a brand is, however, few know the true definition. More important, even fewer know how to properly leverage their personal brand for greater results in business and life.

Your brand is more than a logo. It’s who you are, your reputation in the market, how you are perceived. Your personal brand stands for something. It’s a positive, negative, or natural feeling in your prospects or colleagues minds.

A properly designed and delivered brand opens the doors to greater opportunities, earning a higher income, producing more sales, or positioning you as an expert in your field.

We all have a brand whether we know it or not. In fact, not having a brand – is a brand. Think, how are you being seen in the market. Are you being intentional with your brand, or is it a byproduct of how other perceive you?

Here are 3 specific advance personal branding strategies you can employ starting today to grow your business.

1. Getting Your Brand Known. You are in control of your brand. Give it a name, a look, a feel. Start with your reputation. Then make your colleagues, business associates, clients, customers, employers know your brand. In today’s market social media plays a big role. Are you being conscious of your presence in social media – remember, your market is watching.

1. What you say DOESN’T count. It’s not what you say – it’s what your marke ... Read More…

 When you first think of the consequences of rising interest rates, you could naturally conclude that would drive real estate prices down.  Over the long haul, you would be right.  However, when you look at what is going on now as rates are rising, you might be shocked to see that both rates and prices are rising together.

Mortgage rates have been increasing steadily since the begging of the year 2022.  At the beginning of the year, mortgage rates were right around 3.2%.  As of the end of April 2022, mortgage rates have risen to around 5.2%. Some resources are show as high as 6.1% as of this writing.

The interesting thing is that the median sales price for real estate is also increasing. The median home values of Minnesota, my home state is currently $326k, the twin cities metro area is a little higher at $340k. 

So why are prices still increasing at the same time interest rates are also increasing.  To explain that you need to have a little understanding of economics.  In the simplest form, when supply is high and demand is low, rates tend to drop lower to encourage borrowing.  This is one of the tools that the federal reserve uses to spur growth in the economy.  On the flip side, when inflation is out of control, like it is now, rates tend to rise to keep up with inflation which usually slows borrowing which in turn lowers demand on products which in theory increases supply over time which will bring inflation down.&n ... Read More…

            One of the most boring topics – to most real estate investors, anyway -- is insurance.  That’s why so many get themselves in trouble when it’s too late to do anything about it. 

             As a real estate investor, you NEED to understand the basics of insurance that directly impacts your business.  Property insurance and liability insurance are the backbone of your business’s asset protection plan. Having a major insurance issue – and not having the proper insurance coverage in place – could easily cause your real estate business to go OUT of business, and take all the wealth you’ve built up over time down the drain with it.

            Our goal, thru these articles, is to provide a better basis to your real estate insurance knowledge so that you can ask the right questions and make the right decisions when it comes to your insurance.

            The first topic, as a basis of understanding, is to discuss “reconstruction value” versus “street value”.  Too often people use street value—what the property would sell for today—to try to determine what value they need to use to insure a property.

            Unfortunately, street value is not really a valid insurance valuation, because the cost of act ... Read More…

 That is the question every rehabber asks himself/herself.  Many cities and states don’t legally require that all contractors be licensed (though most require that plumbers, electricians, HVAC contractors, and the like are). But even in places where a license IS required, there are plenty of unlicensed folks who are happy to do jobs ‘under the table’.

The natural thinking among real estate investors is that we can save money by not using licensed folks: that if I use a licensed contractor the job is going to cost me more money.  

Yes, I have asked that question myself.  And I have tried to cut corners by hiring the “handyman” who is not licensed.  Here are a few of the results I have seen.

1. On an early project I discovered the contractor who was doing excellent work, had a cooler on the job.  I didn’t think much about that until I noticed beer cans on the job site.  So, I dropped in one day unexpectedly and discovered my contractor was drinking beer on the job.  When questioned, he replied, “I’m doing fine.  I am perfectly OK to do the job while drinking.  To prove it, I can trim my thumb nail with this power miter saw and will not cut myself.  Here, let me show you.”  He didn’t get the chance to “show me” because I immediately fired him.  Just think what my liability would have been if he had actually tried that!
2. Another time I bought ... Read More…

              Beginning investors have a tendency to get stressed out by the very thought of “negotiation”.

              They put off calling sellers (or calling them BACK) for days and days. They worry about what the seller might say and what they should say back to the seller.

              It’s as if they believe that something they could say to the seller—or fail to say—would make that seller motivated or not motivated.

      The truth is, sellers come to you already motivated or not motivated, and what YOU say doesn’t change that one way or another. And since that very important fact is completely out of your control, that means that the only thing you actually need to worry about in a “negotiation” is

1. Building rapport
2. Getting the information you need
3. Protecting your time

              To that end, there ARE some things that experienced real estate entrepreneurs do, and do consistently, to maximize that chances that any given seller negotiation will be a successful one.

•               Balance your need to get the information quickly with some emotional intelligence. If you really want to make deals, your need to separate the prospects from the suspects quickly and effectively must be balan ... Read More…

It’s the little things like a free dessert or beverage that makes customers feel special and appreciated.  There is nothing difficult or expensive about paying attention to your customers likes and dislikes (Wayne’s Eggs) — remembering their names and keeping track of their buying preferences.  Little things frequently produce big results.  Unfortunately, many business owners miss the small things and then wonder why they lose the business to a competitor.  Here are just a few of the “little things” that can set your business apart from the rest.

• Smile
  A smile is contagious and makes people feel welcome.  Oh, and by the way, it takes fewer muscles to smile than it does to frown.  Plus, research from the 1970s and 80s suggests that your facial expression might influence your mood.  (Try putting a smile on your face and see if you feel happy.)  So, make sure you have a smile on your face when you’re dealing with your customers, so they know their business is important to you.

• Take Responsibility for Mistakes

Everyone makes mistakes and training your customer service team to quickly apologize for mistakes and rectify them is one of the most important “little things” you can do to enhance your customer service.  Sometimes that means accepting responsibility for something that isn’t your fault.  Perception is reality.  The goal is to do your best to satisfy your c ... Read More…

“To contract new debts is not the way to pay old ones.” - George Washington

In the age of virtual currency, rising inflation, and online shopping, helping your teenager get their feet under them when it comes to money seems like an absolute necessity. 

So, wouldn’t it be great if you could pry your teen from perma-scrolling TikTok and Snapchat long enough to teach them a few things about money? However, you might be surprised to find that one great money education tool for them (or anyone) is having a credit card.

Yep, you heard that right. Giving your teen a credit card could really help them learn a few things about money and managing it.

Think about it: You have to handle paying the balance and watch your spending when it seems effortless (at least until the bill arrives). You learn the ins and outs of interest, credit scores, and paying off a tab over time. It’d be tough to find a better money teacher than that. 

Obviously, this is going to mean some hard work and lots of one-on-one time to keep them from going off the deep end, but it might just be worth it. 

So, let’s jump a little deeper into why you should give your teen a credit card.

They grow up so fast

You may think they’re still a baby (as a parent, it’s hard to let go), but your teen is one step away from adulthood and is likely no stranger to credit cards already (note: 18 is still the minimum age to get a credit card). Recent su ... Read More…