Some weeks it is very easy to write this blog and some weeks it doesn’t seem like there is a lot to write about. I hate the feeling that when I sit down on Sunday to write about my weekly accomplishments I really have to think about what I did. If that is the case, it means the results don’t really stand out and the metrics don’t add up to success. However, the more I thought about my week the more I remembered the little things that I did that will produce large dividends in the long run. So, even when you don’t think the work you are doing is producing big results, it’s likely that it is. If you are truly being efficient with your time and are staying on track in your business then you will be just fine.
So, what were the little things this week?
I wasted a ton of time as a real estate agent this week. I will be very happy when the 3 retail transactions I am helping out with are closed. One of them is truly the thorn in my side and taking up WAY too much of my time for the amount of commission involved. I will not be doing anymore of this in the future; if you need a real estate agent I have a great referral for you!
The Cordova Park house that I got under contract a few weeks ago had an inspection contingency that was ending this weekend. So, I really needed to hammer out the Scope of Work (SOW) and inspect the property to make sure that the projected repair costs were correct. This house is a strange renovation and has the potential to really go over budget. The After Repair Value (ARV) will also depend on the level of renovation that is completed. The house next door is a beautiful new construction home that was sold at a very high price that will help support the resale price of this house if done correctly. In the end, there were some things that came up which caused me to request a price reduction on the house. I really don’t like doing that but this one was just too risky and the numbers didn’t add up properly. For those of you who know me, you know that I rely on the numbers and it isn’t an emotional purchase, it is a business. I hope they take the new price but if not I will keep looking for the next one.
A few friends and family members contacted me to discuss lending money to my business. I was happy to discuss their options, what kind of returns they wanted to see and come up with some agreeable terms that would make both parties happy. I love the fact that I am able to provide returns to them that meet or exceed their expectations. These are the things that are going to help explode my business to the next level this year. With more purchasing power comes more possibilities for scale and volume!
I refined my marketing plans and made a few tweaks to maximize the number of leads coming in. We expected our mailers to hit the mailboxes last week and they still haven’t by the time I’m writing this. This direct mail campaign is the first time I have used Yellowletters.com and I didn’t realize how long standard shipping takes to make it to the destination. It’s not an issue but I would have planned for a different shipping date had I known the length of time for delivery. However, once the first set of letters hit the mailboxes it will be nonstop for the rest of the year. So standby for some serious results and if you are on my buyers list and reading this, give me a few weeks and then expect some great properties. One day I will divulge all of my marketing secrets but that day isn’t today, sorry!
The auction house utilities were turned on and it has been fully cleaned out for FREE! That’s right, I was able to save about $600 on the house cleanout by calling a guy I made contact with during my last flip. I had a great card to play on this one, the house had a small boat trailer on the back of the property. If you guys flip houses and don’t have an American Picker on your speed dial I would recommend you get one. This guy loves to go through houses and look for treasures that he can resell or reuse, in fact I don’t know what he does with it nor do I care. One man’s trash is another man’s treasure, right? He typically likes to go for appliances and garage items but I thought the boat trailer would be a slam-dunk. So, instead of my GC getting a dumpster for all the garbage you saw in the photos and pay some guys to clean it out; I was able to get it done for free. The bartering system of 6000 B.C. Mesopotamia is still alive and well, you just need to know who to call.
I analyzed a ton of properties this week and drove by a couple possible auction purchases. These are still a few weeks away but standby for updates on them as well as the other properties in the pipeline. The filled pool house is still set to close on Feb 25 and the auction house will be officially starting rehab on Monday!
Lastly, on Friday an extremely successful real estate investor interviewed me for his podcast; Just Start Real Estate. If you haven’t heard of Mike Simmons or his podcast before you need to check it out (and I’m not saying that just because he interviewed me). I am always looking for new real estate investing podcast that I can get into and his has some great investor interviews, ideal for all levels of investors. If you are a beginner or an experienced investor you will get a lot out of listening. His website also has some great links to products and information that will help with your business. I truly feel like I have made it now that I have been on a podcast! The sky is the limit now…
Until next time, thanks for reading and please leave a comment below if you like what you’re reading. I’m always looking for something to write about midweek so if there are any questions you have about investing send me an email or comment below. If you know someone who would like my blog, please share it on Facebook or pass the link onto him or her.