"A little less conversation, a little more action, please ..." ~Bret Calltharp
Real estate is not rocket science once you understand the mechanics of the markets you operate in and how to make money on a deal, but it is still NOT easy. To reach the top of your game it will take dedication, a sharp learning curve and the ability to let the hard knocks roll off your back. Because every real estate mogul from Donald Trump to the top agents in the country today know that not every deal is a money maker – some are just learning experiences that you use to do better the next time.
While you may already have your foot in the door with a real estate flip or two, the real estate investors who are really bringing in the bacon are turning over multiple houses each month – bringing in considerable cash flow but also holding considerable overhead on their large project load. But let’s start small. How do you get to your first, second and then third flip without going belly up? Here’s the insider’s guide to fix and flipping homes the smart way.
Step 1. Prioritize your spending.
If you want to buy real estate assets in order to make money on them, the perception is you need a chunk of your own change to get started. Many of our entry level investors come into their first deal with the idea that they need to put up their own credit, personal collateral and assets in order to get funding. This is simply not true here at Center Street Lending. We evaluate the strength of each investor’s business plan, the market conditions, the team they bring to the table and a variety of other factors to quickly and efficiently assess the risk for us to lend to them. We often do this entire process in less than 1 week to ensure investors don’t miss out on a great first opportunity they’ve been eyeing.
This non-asset based lending model is a unique hard money loan product that we pride ourselves on being able to provide to investors who need capital to get going. It’s easy to secure funding if you’ve been successfully flipping homes for several years and can prove a portfolio of projects that have made money – it’s not as easy to secure the capital to buy a property and the extra money required to renovate it without that track record. That’s what we specialize in here at Center Street. We know the business and a good bet when we see one. Call 949-244-1090 to discuss your loan options with an expert loan officer at Center Street Lending today to get started.
Step 2. Plan your day ahead each night.
This is just a solid business building strategy used by top entrepreneurs around the world. Planning ahead and creating a flow for your day is the best way to ensure you’ll get the most important items checked off your list. Starting your day with a cup of coffee and an ‘idea’ of what needs to happen is a recipe for an unproductive day.
Step 3. Get your real estate license.
This will count as an expense at first, but will help you in a numerous ways as you get going. Yes, you may just want to invest and flip properties and hire a realtor each time to market and close the sale. That’s fine. But what you’ll gain from becoming a realtor is access to your local MLS to scour for listings, a deep understanding of your state’s real estate laws and best practices to keep you out of hot water, the ability to network with other real estate professionals and tap into their investor networks, Etc. The BENEFITS of being licensed and truly knowing your business are endless. So go out there and get that license!
Step 4. Refocus your day’s priorities at noon.
Planning your day the night before is great, but it’s just that — a plan. Things happen throughout the day that will throw you off so it’s important to do a mid-day check in and reprioritize so you can continue to stay productive the rest of the day. The key is to get back on track. Know your goals for the day, and make sure you have them prioritized. You want to do the most important things first and leave the ‘extras’ for later in the day when you find the time.
Constantly ask yourself these two main questions:
1. Can this be done tomorrow? If so, then stop doing it.
2. Is this what I planned to do today? If not, then ask yourself if it helps you buy more real estate. If the answer is still no, then stop doing it.
There is no magic bullet or formula you can use to instantly become a top real estate investor. Building your business, finding the right opportunities and putting together the right team to make it all happen will take time, luck and ingenuity. However, there are many “best practices” you can implement that will greatly improve your chances of success. We hope these top 4 tips will help you get started building your real estate empire today!
Like most real estate investors in 2008, Center Street Lending had clients that were really in need of a hand up to get started again after they were hit hard when the real estate market bubble burst when the big banks failed. This particular client was previously a very successful and knowledgeable real estate entrepreneur who has a unique and distinct design style – today his house flip projects are highly sought after and the release of each is anticipated months in advance. The lending experts at Center Street recognized he was a smart, reliable investor and here is his story.
This investor, who has chosen to remain anonymous, was in the boat most real estate investors are in at one point or another - lacking the capital to get deals going. Before finding CSL, this start-up investor lost a lot during the market downturn and went through some really tough times. But as the market started to rebound in 2010 he got his feet back in but needed capital and a lender with confidence and forethought to get him going again.
The first deal CSL pushed through for this investor was a 400K project and CSL was able to finance the closing amount and the repair costs to complete the renovation. And the amazing part is they did it all with a quick 5 day close from start to finish! This fast closing time allowed the investor to snag an additional discount on his closing costs – further helping pad his bottom line.
This investor made smart use of the loan and earned a good return on that first deal within 7-8 months. Soon after, he locked in another flip within that price range and was off and running, always coming back to Center Street for their reliable, courteous and speedy funding process. Today this once struggling investor is doing million dollar flips consistently. And he one of the more popular Hollywood area investors – people know and love his remodeling style. In fact his homes have become so popular there is a waiting list for his deals! He has been featured in area news articles and recently signed a contract with HGTV to do a reality show that will follow him as he successfully buys and flips houses in the Los Angeles area. And behind the scenes, Center Street Lending is there financing every deal.
Center Street Lending was flexible on pricing when deals were tight on margins – so that he could keep going and get to the point he is today. CSL also financed the rehab money he needed so he could fix up the properties. This has proven to be a great partnership and CSL is proud to call him a success story.
Become the next CSL success story yourself – call (949) 244-1090 today to talk to an expert lender about your options to get started fixing and flipping homes in your area. Your success is only a call away or click away!
The 55 and over crowd is on the house-hunt and with projections of 52 percent of new-home buyers falling in this age group over the next five years, according to a study by Epcon Franchising and Metrostudy, now is the time to get single story, townhomes and other senior-friendly housing options ready for this big buying market. The study estimates that the supply squeeze will affect about 260,000 boomers in the top metro markets. Luckily for all your keen house flippers out there, at the current rate of the aging baby boomer population, several cities will be unable to meet the demand, which will likely keep boomers from moving to the location or type of home they want. With so many potential buyers ready to roll, it might be time to rethink your fix/flip house investment strategy and start hunting for projects that would meet the needs of this selective and well-financed audience. A lot of new opportunities could be in your future.
The top things this generation of house-hunter is looking for are: easily accessible floor plans – like patio homes where at least the master bedroom, full bath, kitchen and living area are all on the main level. They are also looking for quiet, privacy and some outdoor space to relax but without a lot of exterior maintenance- townhomes that include yard maintenance are particularly interesting to this group. They also want amenities including a pool, gym, tennis court, clubhouse, walking trails, etc. to keep up an active lifestyle. The other good thing about fix/flipping for this market is that the homes do not need to be in good school districts or near bus stops, pediatrician’s offices or libraries. Things younger families are looking for are just not making the list for this baby boomer generation – this should open up other areas to house hunt in that are currently not froth with competition from families with school-aged kids.
The following markets will likely suffer from the largest housing gaps for 55-plus consumers, according to the Epcon Franchising and Metrostudy study:
1. Dallas-Fort Worth, Texas
3. District of Columbia
9. Austin, Texas
10. Minneapolis-St.Paul, Minn.
Source: “Top Cities for Unmet Boomer Housing Demand,” BUILDER Online (Oct. 24, 2014)
So rethink your 2015 house hunting strategy and consider buying up some 55+ friendly fix/flip opportunities – the market should be heating up! For financing options and questions to get going on this exciting real estate investment strategy, contact the experts on hard money and private money lending here at Center Street at 949-244-1090.