Creative R E A L E S TAT E
A QUICK, EASY FLIP
Adam Hardy's success story PAGE
MnREIA Trivia PAGE Deal of the Month PAGE Success Story PAGE 9 Strategies to Grow Your Home Renovating Business PAGE Market Update PAGE October Meeting Recap PAGE
Robyn Thompson, the "Queen of Rehab" PAGE
New Members PAGE November Meeting PAGE
Minnesota Real Estate Investors Association | www.MnREIA.com
November 2018 | 1
October 1. What does FSBO stand for? A) Future Stand By Office B) For Sale By Owner C) For Sale By Option D) Fairly Strong Body Odor 2. How do you find FSBOs? A) Driving for Dollars B) Craigs List C) Buy a List D) All of the Above
Trivia
D) You can never put signs on private property 4. What is MAO? A) Maximum Allowable Offer B) Minimum Allowable Offer C) Maximum Affordable Offer D) Minimum Affordable Offer
5. Which of the following 3. When can you put a sign on would be considered Private Property? encroachment? A) During election season A) A neighbor’s shed sitting B) When the owner isn’t home over the property line C) Only with the owner’s B) The neighbor’s tree permission branches hanging over your
flower garden C) Building a fence on the neighbor’s side of the property line D) All of the Above 6. Where should you put your bandit signs? A) Along the Freeway B) Near the Stop Signs at a busy intersection C) At the end of a Dead End Street D) All the above
Congrats to this month's WINNER DuWayne Jones
aNOtHer perk FOr OUr MNreIa MeMBerS
CONTRACT OF THE MONTH Free for MEMBERS ONLY at our main
monthly meetings
2 | November 2018
Minnesota Real Estate Investors Association | www.MnREIA.com
DEAL of the
MONTH Submit you’re before and after pictures and a description of the project. All valid entries will receive $50 REIA Bucks and one lucky winner every month will win a $50 Home Depot Gift Card. Entries can be of current deals or past projects. Submit your entries to amckinnon@ therealestatehouse.net.
Non-MLS Deal Adam Hardy, MnREIA Member
I had a realtor friend refer me to this non MLS deal in Brooklyn Park. The house was a 4 bedroom 2 bathroom that didn’t need much work. All I had to do to it was add in a new furnace. Since there was no buying agent to pay commission to and I paid cash to close, we came to an agreement of a $160k offer. I marketed it for two weeks and sold it on contract for 188K!
Minnesota Real Estate Investors Association | www.MnREIA.com
November 2018 | 3
9 Strategies to Grow Your Home Renovating Business By Robyn Thompson
I have become financially independent renovating houses, and you can do the same; however, if you aren’t prepared, the process can become completely overwhelming. To help you avoid the pitfalls that are out there, I have developed nine key strategies to assist you in growing your house renovation business. If you are willing to learn from my experience, you will enjoy greater success much sooner. While I was able to renovate 17 homes during my first year in the business, by employing the following strategies, I have grown my business to the point that I can, in today’s environment, renovate 4050 houses per year. Keep in mind that I do an average of $26,000 to $50,000 worth of repairs to each of my houses, so these are not quick carpet and paint jobs. Here are the nine key strategies to help you take your house renovation business to the next level.
Key Strategy #1: Develop The Ability To Take Action Quickly
One of the most important elements of my success is my ability to take action quickly. In my area, the competition is tough, and if I procrastinate I'll lose deals. If you want to “steal” a house, you’re going to have to be able and willing to act quickly when a good deal presents itself. If I go look at a house that I feel is a good deal, I write an offer immediately; get to the point where you are able to.
Key Strategy #2: Learn How To Find And Handle Contractors.
Learning this skill will save you money,
4 | November 2018
time, and heartache. I used to allow contractors to move very slowly, and I would accept their excuses. No more! I currently have up to twenty workers on my job sites, and the renovation process on my investment properties is very smooth because I have learned to handle contractors well. The first important element is finding quality contractors. Some of the best ways to get good referrals are to ask friends and relatives for recommendations, call your local building inspector, or attend the local REIA meetings and network with the big players in your community. Do not give contractors much money up front. Until you are able to do a large volume, you may have to give them some money, but always give them as little as possible until some of the work has been completed. Knowing they have money coming gives them sufficient motivation to show up at your job site and do a quality job. The last thing to remember in dealing with contractors is this: don’t be afraid to fire a bad one. Simply let the contractor know that you are not satisfied, settle up on the spot, and call one of your back-up contractors to start as soon as possible.
Key Strategy #3: Develop A Sound Educational Plan I started out in this business knowing nothing about renovating houses, so consequently I enrolled in Hard Knocks University. Now, with all the materials and home study courses out there, there is no reason for anyone to start this business blindly. I still go to seminars and buy
books and tapes. I try to read one good book by a millionaire every month, and I listen to audio tapes daily to attempt to improve myself. An investment in education is the greatest investment you will ever make, so you need to develop a sound educational plan to help you achieve your goals. Plan to spend one hour each day increasing your real estate knowledge base or improving yourself. In two to three years, you will see a huge difference in who you are and what you have accomplished. Always strive to better yourself!
Key Strategy #4: Obtain Access to Private Capital
Growing my business to the point where I am able to renovate over 40 houses per year did not happen by accident. Using a hard money lender is what took me to the next level, and private capital can do the same for you. Anyone who has completed one or two rehabs can tell you that they become very capital intensive. If you do not have a private source of money, these funds must come directly from you. You need to find a source other than your bank account for the funds to purchase and renovate your houses. Whether this money comes from a hard money lender, a line of credit, or a private lender, the sooner you find a good source of funds, the sooner you can accelerate your business.
Key Strategy #5: Develop An Efficient Office System If you want to increase the number of houses you are able to renovate, you
Minnesota Real Estate Investors Association | www.MnREIA.com
© ADOBE STOCK
must develop an efficient office system. I can’t be involved with every aspect of buying and selling 30to 40 houses per year, so it is important for me to have an efficient system in place that allows me to maintain my business at that level. My focus is on buying houses and cash flow; everything else is delegated to members of my staff. I realized that I was worth too much per hour to be handling menial tasks. I am much more of an asset to my business when I am out locating deals and managing my cash flow. I delegate everything else to good people in my office: answering phones, accounting and bookkeeping, maintaining office supplies, dealing with contractors, and placing standard orders. You will not be able to develop a system like mine all at once, but it is important to start piece by piece. Add one person at a time as you can afford the payroll, and watch your business grow.
Key Strategy #6: Learn How to Estimate Your Own Repairs
When I am interested in a property, I go out and estimate repairs personally, and I recommend that you do the same. If you don’t know how, learn. By relying on someone else to estimate repairs, you are putting your profit in their hands. They will not lose one minute of sleep if they
miss a bad furnace that eats up $3,000 of your profit. Just as I do, I recommend that you bring a repair sheet with you to each property you inspect. Write down each repair and the estimated repair cost. After you add up all the repairs, add an additional 10% contingency to allow for anything you may have missed or underestimated. You should also allow an additional $2,000-3,000 for additional niceties and upgrades that will help sell your house. Ensure your houses will be gorgeous when they’re done by planning for these items in the budget ahead of time. Beginning investors will often underestimate the repairs and will borrow $4,000-5,000 less than what will be needed to do a quality job. If you underestimate, you will be forced to cut back on important areas of the renovation process such as the kitchen and bath. It is much better to overestimate and lose a deal than to underestimate and have a low-quality rehab that you are unable to sell.
Key Strategy #7: Do Quality Work.
This may sound like a simple concept, but I have seen some students’ homes turn out looking as bad as when they started. Today’s buyers are smart, and if they
Minnesota Real Estate Investors Association | www.MnREIA.com
see that you have skimped on the carpet, vanities, and kitchen cabinets, they may get worried about the quality of the more expensive items: furnaces, roofs, and the foundation. On the other hand, if your house is gorgeous, it alleviates the buyer’s fears about these bigger items. Most buyers don’t have much money left over after purchasing a new home. They want to know that they won’t have to replace a furnace or fix a structural problem two months down the road. It is better to spend a little extra money on renovations to assure your house is top quality and will sell quickly. In the end it is actually cheaper since buyers will move quickly if your house is pristine, and you won’t have to carry your house for 6-12 months.
Key Strategy #8: Get Your Real Estate License.
My real estate license is one of the most critical tools I have. It allows me access to a world of properties that I would otherwise be unable to find. I search the Multiple Listing Service (MLS) two or three times every day looking for brand new properties. If there is a good deal, I don’t have to wait for a Realtor to call or fax me; I can be in my See STRATEGIES, Page 6 November 2018 | 5
STRATEGIES Continued from Page 6 car looking at the property immediately. Not only can I find my own properties, but I can also do my own comps rather than relying on a Realtor’s opinion. When you are figuring how much you can offer, it is important that you know what a house will sell for when completed. You should not rely on a Realtor who is trying to convince you that the house is a good deal. A house is only a good deal if your numbers tell you it is. By getting your license, you won’t have to rely on someone else to do comps for you.
lightening speed. Buying a house at the right price and renovating it properly are two important steps, but to realize a profit you must be able to get buyers qualified and get to closing quickly. The faster you pull your money out of a property, the faster you can reinvest it in additional properties. Finding a good mortgage broker is one of the most important aspects of selling your houses quickly. The mortgage broker I use is the most critical team member I have. She has thirteen years experience and closes over 100 mortgages per year. It is very important to find a top quality loan officer who deals heavily in first-time home buyers. When you are looking for a mortgage broker, ask them the following questions: how long have you been a mortgage broker, how many
Market Update
Key Strategy #9: Develop a System To Sell Your Houses Quickly
an Sales Price
The last strategy is selling properties at
deals do you close each month, and what kind of mortgages do you focus on? By asking these questions you will screen out the people you don’t want on your team and identify those you do. There is nothing worse than taking your house off the market for two months and then finding out the buyers could never have bought it. By pre-screening buyers and using a quality loan officer, you will totally eliminate this problem. When I take a house off the market, I know it will close. Spend a little more money on marketing to attract “A” credit buyers to help accelerate your houseselling machine. In conclusion by implementing these nine basic strategies, you will develop a more profitable and efficient real estate business. I wish you and your business much success in the coming years.
Market Update Market Update
Median Sales Price Median Sales Price
Market Update
Median Sales Price
August
Median Sales Price: -- Median Sales Price: -Pending Sales: ▼ Pending Sales: ▼ No Change from $268,000 in July to $268,000 in August Decreased from 5,963 in July to 5,663 in August No Change from $268,000 in July to $268,000 in August Decreased from 5,963 in July to 5,663 i ce: -Pending Sales: ▼ New Listings: ▲ Closed Sales: ▲ New Listings: ▲ Closed Sales: ▲ $268,000 in July to $268,000 in August Decreased from 5,963 in July to 5,663 in August Increased from 7,684in July to 7,814 in August Increased from 6,302 in July 6,629 in August Increased from 7,684in July to 7,814 in August Increased from 6,302 in July 6,629 in A Month’s Supply of Inventory: -Closed Sales: ▲ Month’s Supply of Inventory: -No Change from 2.5 months in July to 2.5 months in August No Change from 2.5 months in July to 2.5 months in August 684in July to 7,814 in August Increased from 6,302 in July 6,629 in August
of Inventory: -- 2018 6 | November
2.5 months in July to 2.5 months in August
Minnesota Real Estate Investors Association | www.MnREIA.com
DON’T FORGET
All Aspects of Home Remodeling and Repairs Call your local Experienced Handyman Jim McKinnon (612) 590-0830 Jim.McKinnon@hotmail.com
To pre-register for Robyn Thompson’s 2 day workshop. She is the “Rehab Queen,” and you don’t want to miss it!
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9 a.m. to 5 p.m. November 10-11, 2018 DoubleTree by Hilton Hotel St Louis Park 1500 Park Place Blvd. • Minneapolis, MN 55416
Pre-register at www.MnREIA.com.
To contact an Independent Associate: Nikki Swanson 763-245-3791 nikkiswanson@legalshieldassociate.com www.legalshield.com/hub/nikkiswanson This is a general overview of our legal plan and/or identity theft plan coverage for illustration purposes only. See a plan contract for your state of residence for complete terms, coverage, amounts, conditions and exclusions.
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Minnesota Real Estate Investors Association | www.MnREIA.com
November 2018 | 7
MnREIA’s vendor Hendrie Grant talking about using hard money to buy rentals!
New MnREIA member, Justin Thill and member Dalal Ahmad posing for the camera. New members take a pic in front of our new MnREIA banner! Don’t forget to do the same next time.
Having fun catching up at the meeting
OCTOBER MEETING RECAP President and founder of MnREIA was the speaker tonight on the topic of Marketing 101. He packed the room giving tons of great and useful information! Everyone walked away with ideas to grow and better their businesses! If you missed this presentation from last month’s meeting, we recorded it for our members. The audio archive is in our calendar for October’s meeting! Not a MnREIA Member? Go to www.MnREIA.com to join OR give us a call at (763) 432-2809. 8 | November 2018
MnREIA member Camerone Bey posing in front of the new banner as well!
The WINNER, Paul Strelbicki who won two tickets for the OREIA Conference!
Minnesota Real Estate Investors Association | www.MnREIA.com
ROBYN THOMPSON the "Queen of Rehab" Robyn is the nation’s leading expert on buying properties from motivated sellers at deep discounts, renovating them at lightning speed and selling them quickly. 9 a.m. to 5 p.m. November 10-11, 2018 • DoubleTree by Hilton Hotel St Louis Park • 1500 Park Place Blvd., Minneapolis, MN 55416
Quick Turn Houses That Need Renovations into Fast Cash in Today’s Fast Paced Market! Robyn is the nation’s leading expert on buying properties from motivated sellers at deep discounts, renovating them at lightning speed and selling them quickly for huge chunks of cash.
Robyn will teach you: • Her Mega Money Marketing Machine to Attract Desperate Sellers
Contractors so Your Rehabs Always
• The Art of Making Multiple Offers on Free and Clear Properties that Create Huge Wins for You and the Sellers
Finish on Time, on Budget and Are the Highest Quality Properties For Sale. • The 21 Deadly Mistakes that Real Estate
• How to Write an Iron Clad Independent Contractor Agreement to Protect
Investors Make to Derail Their Growth • How to Shove Prequalified Buyers
Yourself from Dishonest Contractors • How to Build a Big Fat Cash Buyers List that will be your own ATM Machine.
• How to Locate, Prescreen & Coordinate
through FHA/VA Mortgage Process in Weeks not Months • How to Determine the Best Properties to
Flip For Fast Cash vs. the Best Properties to Hold for Maximum Appreciation • The Seven Actions a Serious Business Owner Focuses on Daily to Maximize Revenue in Real Estate • Effective Delegation Strategies to Boost Your Income to 7 Figures • How to Utilize Employees to Cut Renovation and Holding Costs by as Much as 25%
Early Bird Special Pricing Up To 11/7/2018: Members: $59; Non-Members: $79. 11/8/2018 to 11/8/2018: Members: $79; Non-Members: $99. 11/9/2018 to 11/9/2018: Members: $99; Non-Members: $119 Regular PriceMembers: $119; Non-Members: $139
VISIT MNREIA.COM TO REGISTER. Minnesota Real Estate Investors Association | www.MnREIA.com
November 2018 | 9
CONGRATULATIONS TO THE NEWEST
MnREIA MEMBERS! Steve Gildersleeve Beth Gildersleeve
Mary Yang
HOSTING ITS ANNUAL MnREIA IS MnREIA HOSTINGISITS ANNUAL Inta Halvorsen TOYSHOLIDAY FOR TOTSPARTY! HOLIDAY PARTY! TOYS FOR TOTS Ann Tran
Rebekah Foster
Steve Gaertner
Moe Ahmed
Brice Holasek
Curt Kluznik
Rachel Pope
Manoochehr
Brent Halstensen
Shehzad Ahmad
Matthew Higgins
Chehrazi
Lauren Robertson Ayesha Haq
Josiah Jackson
Justin Robertson Eric Palosaari
Christopher Luedtke
Jodi Newsom
Adam
10 | November 2018
Pricing:
Pricing:
Members - FREE Non-members - Please bring in 2 NEW unwrapped toys to waive your door fee.
Robert Jerome
Dimarco Kunnus
A N SW E R S
Maple Grove, MN 55369
Randy Goltz
Lauren Erickson
Trivia
* Awesome giveaways * Awesome giveaways 5:30-10pm. Tuesday, December 4th *Dinner *Dinner Holiday *Cash Bar Inn Arbor Lakes *Cash Bar 11801&Fountains Way -win cash prizes! *Bingo! -win cash*Bingo! & prizes!
in 2 NEW toys to in 2 NEW unwrapped toysunwrapped to fee. your door fee. Sullivanwaive your doorwaive Pricing:
Austin Kanode
Michele Dumond
ANNU join TOTS us for... HOLIDAY PAR Come join us for... Come TOYS FOR
Come join us for... * Awesome giveaways *Dinner Members FREE Members FREE Scott Jackelen *Cash Bar Non-members -Non-members Please bring - Please bring Ahmed Ahmed *Bingo! -win cash & prizes!
Karen Higgins
Justin Thill
Linda Erickson
5:30-10pm. Tuesday, 5:30-10pm. Tuesday, December 4th December 4th Holiday Holiday Inn Arbor LakesInn Arbor Lakes 11801 Fountains11801 Way Fountains Way Maple Grove, 55369 Maple Grove, MN 55369 MnREIA ISMN HOSTING ITS
Shaina Mccoy Ali Nkosi
1. B
4. A
2. D
5. D
3. C
6. B
Pre-register at www.MnREIA.com.
MEME OF THE MONTH
OCtOBER 2018
Minnesota Real Estate Investors Association | www.MnREIA.com
MESSAGE from
MIKE JACKA KIM BURKE
Are We Entering The Slow Months? Yes and No. The fall and winter months will have fewer buyers looking for properties. However, people still need to move for work or financial reasons. I have found over the years that even though there are fewer buyers looking, the buyers that are looking are serious. The advantage to serious buyers and sellers for that matter is they intend to buy or sell. During the busy months of spring and summer, we tend to waste our time with a lot of tire kickers or window shoppers. I personally prefer this time of year because I can be more efficient with my time and efforts rather than wasting a lot of time trying to determine the buyer/sellers motivation and then deciding who to spend most of my time and effort with.
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Minnesota Real Estate Investors Association | www.MnREIA.com
November 2018 | 11
Minnesota Real Estate Investors Association, Inc. 7040 Lakeland Ave. N #200 Brooklyn Park MN 55428 (763) 432 2809
N E T WO R K I N G ~ T R A I N I N G ~ E D U CAT I O N
NOVEMBER MEETING Robyn Thompson, the "Rehab Queen"
CALENDAR OF EVENTS: NOVEMBER
Quick turn houses that need renovations into fast cash in today’s fast-paced market! Robyn is the nation’s leading expert on buying properties from motivated sellers at deep discounts, renovating them at lightning speed and selling them quickly.
6-9 p.m. November 6, 2018 Banquets of Minnesota 6310 Highway 65 NE Fridley, MN 554322018 12 | November
Minnesota Real Estate Investors Association | www.MnREIA.com