Mid-Atlantic Real Estate Investors Association

MAREIA

Mid-Atlantic Real Estate Investors Association EDUCATION • ENCOURAGEMENT • ETHICS MAREIA MESSENGER

August 2017

Rehabbing (aka Flipping) for Maximum Profit Robyn Thompson is the nation's leading expert in buying, renovating and selling single and multifamily homes for huge profits. She has renovated and sold hundreds of homes and taught thousands of students how to be a successful "rehabber."

Join us for an opportunity to learn from Robyn who will show you how to find, buy, fix and sell any property in the least amount of time for the most profit!

During this her 90-minute presentation, Robyn will show you. . .

The 9 Types of Houses to Never Buy The Rehab Process from start to finish The 8 Contractors You Must Have on Your Team How to Locate and Hire the Best Contractors Robyn Thompson is the one of the nation's leading experts in buying, renovating and selling single and multifamily homes for huge profits. Robyn has renovated and sold hundreds of homes. And has re-

habbed and sold as many as 50 houses in one year!

Here are just a few of the valuable ideas that Robyn will cover during her presentation on August 16 The 9 Types of Houses to Never Buy Locating, Prescreening, Hiring & Controlling the Best Contractors The 21 Critical “WOW” Factors to Make the Home Sell 8 Marketing Strategies to Attract “A” Credit Buyers In addition, Robyn will spend the entire weekend of August 19-20 revealing all the details of her marketing and rehabbing knowledge.

Including a full-day bus tour with a local contractor showing you what to rehab and how much it costs.

Those who register for her Rehab Weekend will be able to attend the free Friday night Happy Hour with Robyn on August 18.

Don’t miss this opportunity to meet the “Queen of Rehab” in August.

IN THIS ISSUE: Page 1 Meeting Agenda Page 2 Message from the President Home flipping soars in the District and Maryland By Kathy Orton Page 3 A New Generation of Investors Page 4 Meetings Sponsors

MEETING AGENDA 5:30–6:30 Newbie Meeting + Open Networking 6:30–7:15 Announcements + Quick Pitch 7:15–7:30 Speed Networking 7:30–9:00 Guest Speaker or Panel

MESSAGE FROM THE PRESIDENT The following are excerpts from a President’s message from exactly 10 years ago!

Many of you may know that I was a guest on the Marc Steiner show at the end of May. The subject of the show was the problem of so many vacant and abandoned properties in Baltimore city.

When I was asked to be on this program, my first thought was that this would be a “blame the investor” session.

It turned out that I was completely wrong.

To my surprise, the discussion became “blame the city” and it was apparent that many people in and out of real estate feel that the city has a bias towards working with the big developers. These are the companies who come in . . . and build apartments, condos, townhouses and retail properties. And they are usually handed many concessions including substantial tax breaks. It probably doesn’t hurt their business that they are among the largest contributors to the election campaigns of the city’s elected officials.

There is no disputing that there is a need for these types of large-scale projects, but it is also true that it is not possible or even desirable to bulldoze the entire city and rebuild it from the ground up.

Apparently, those who set and carry out the real estate planning for Baltimore think that they can micromanage the properties that are offered for sale to individual investors.

It is truly tragic that in the last 10 years, not much has changed and the city is still suffering from a glut of vacant and abandoned properties. And the population has actually decreased since I wrote this message in July 2007.

However, as bad as things are, there are a few bright spots that I want to point out. One is that there is now a group representing the individual investor/rehabber. The group is called the Small Developers Collective and their website is SmallDevelopersCollective.org. The mission of the group is to make the city officials aware of the economic impact that we, as “mom and pop” investors have on the city. This is a much-needed The other ray of hope comes from Kahan S. Dhillon, Jr. who actually is a big-time developer, having worked on Tysons Corner in Nothern Virginia. Not to hold that against him since he has come up with a $10 Billion plan to revitalize the city through a program called The Baltimore Renaissance. The details of his vision can be found at MyBaltimoreCity.com Part of his idea is to spread out the development over 70 hot spots around all parts of Baltimore.

These areas will provide anchors that will allow small investors to rehab properties nearby and know that the neighborhood will not be suffering from further decline Add to this Under Armour’s $5.5 Billion project at Port Covington and maybe there’s a chance that I won’t be writing about the poor state of Baltimore City 10 years from now.

Alan Chantker, President

Home flipping soars in the District and Maryland By Kathy Orton Washington Post July 12 Home flipping has slowed across the country, but it’s booming in the District and Maryland. The District had the highest number of home flips in the nation in the first quarter, according to data collected by ATTOM Data Solutions, a real estate data provider. Maryland ranked fifth.

For its purposes, ATTOM defines a home flip as a property that has sold for the second time within a 12-month period. It uses publicly recorded sales deed data from more than 950 counties across the nation.

Across the country, home flips were down 8 percent from the previous quarter and 6 percent annually. But in the District they were up 10.7 percent from the previous quarter and up a whopping 32 percent year-over-year. Only Hawaii with its 36 percent jump had a bigger annual increase. Home flips in Maryland were up 8.5 percent from the previous quarter.

Daren Blomquist, senior vice president at ATTOM, says the uptick in foreclosure activity in both jurisdictions is leading to the increased number of home flips.

“I believe in both areas it’s remnants of the last crisis,” he said.

“It’s not a new crisis. In the District, where there were all these delays, we’ve in the last year been seeing dramatic increases in foreclosure activity, which is a great pipeline for flippers. It’s a hot housing market. Prices are going up. There are neighborhoods gentrifying, which are areas that flippers look for.”

Most of the flipping in Maryland occurred in Prince George’s County.

“Maryland is a little bit ahead of the game in clearing out their backlog compared to the District,” Blomquist said. “It’s in the lower-priced areas of Maryland that we’re seeing a lot of flipping.”

Baltimore city and Baltimore County came in just below Prince George’s County for the highest rate of home flips, but Baltimore city was where flippers made the most money.

Baltimore had an average gross flipping return on investment of 106 percent. (ATTOM looks only at the difference between what the property cost to purchase and its sale price. It doesn’t include the cost of renovation.) The average return on investment for Maryland was 79.3 percent. The District had a 58.3 percent profit margin. The national average was 47.4 percent.

“In D.C. what’s interesting, that discount up front is not as good, but because the market is so hot, they’re selling at a very nice premium,” Blomquist said.

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A New Generation of Investors The following are just a few of the headlines from financial and real estate websites when you search for “millennial,” “investing,” and “real estate.”

Millennials Are Interested In Real Estate Investing Nav Athwal MAY 17, 2017 Millennial Real Estate Investing Gets Hip May 3, 2017 by Allen Shayanfekr Tips for Millennials Who Want to Invest in Real Estate Written by Yanni Raz on May 9, 2017

And notice that these articles all appeared within about two weeks of each other.

As you can see, there seems to be a great deal of interest in what Millenials will do when it comes to Is this a coincidence or is there something in the air that points to a coming change in the real estate market?

I’m not a big believer in coincidences and think that there is reason to take note of this interest in how Millenials will affect real estate both as consumers and investors. This generation (born between about 1977-1980 and 1996-2000) now outnumbers the Baby Boom generation (1946 to 1964). The older generation, which was the largest, is in the process of retiring and downsizing in the coming years so their market impact will be declining. Meanwhile, the Millenials are just now reaching the point starting families so they will be the dominant force in the coming years.

Taking note of these facts, MAREIA is announcing the start of a new discussion group by and for Millenials.

This discussion group will provide a place for up and coming investors to meet others in their age group and help each other become better investors as they share their successes and mistakes.

This group will be moderated by MAREIA member Sophie Thomas, a successful wholesaler, who is now in the process of learning what it takes to be a rehabber.

The MAREIA Millenials will be limited to those 35 or younger and will meet on the 2nd Tuesday each month at the MAREIA classroom. The first meeting is scheduled for August 8 at 6:30 pm.

For more information go to the MAREIA calendar at MAREIA.com or call the office at 443-738-3600.

www.MAREIA.com

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Meetings All MAREIA Meetings are held at 90 Painters Mill Rd., Suite 220, Owings Mills, MD. 21117 unless otherwise specified.

SEPTEMBER

AUGUST Landlording Discussion Groups

Landlording Discussion Groups

Wednesday, August 2, 2017 | 6:30 pm-8:30 pm Moderated by Mary Jo Whelan, Landlord and Property Manager

Wednesday, September 6, 2017, 6:30 pm-8:30 pm Moderated by Mary Jo Whelan, Landlord and Property Manager

WINGS - Open Discussion

WINGS - Open Discussion

Monday, August 14, 2017 | 6:30 pm-8:30 pm

Monday, September 11, 2017 | 6:30 pm-8:30 pm

Real Estate Roundtable- 2017

for investors at all experience levels Your FREE* "Genius Bar" for Coaching, Mentoring and Advice Monday August 28, 2017 | 6:30 pm - 8:30 pm

Newbie Meeting- FREE

FREE Real Estate Investors Orientation Class

for investors at all experience levels Your FREE* "Genius Bar" for Coaching, Mentoring and Advice Monday, September 25, 2017 | 6:30 pm - 8:30 pm

Benefits and How to Get Started in Real Estate Tuesday, August 22, 2017 7:00 pm - 9:30 pm (doors open at 6:30 pm)

Wednesday, September 19, 2017 | 5:30 pm-6:15 pm

Real Estate Roundtable- 2017

FREE Real Estate Investors Orientation Class

Tuesday, September 26, 2017 7:00 pm - 9:30 pm (doors open at 6:30 pm)

Featured Event:

Newbie Meeting- FREE

Monthly Real Estate Investor Orientation that covers an overview of MAREIA, our benefits and the correct entrepreneurial mindset for success in RE investing.

Wednesday, August 16, 2017 5:30 pm-6:15 pm

LOCAL SPONSORS Gold Associate Advance Contracting

Contact: Kevin Bristol 806-M Barkwood Court Linthicum, MD 21090 410-636-7201 Details www.advancecontractinginc.com

Genesis Consulting Corporation

HML Capital Group

Michael Gabriel Michael Gabriel, Beth Marsie-Hazen 6400 Baltimore National Pike, #323 Catonsville , MD 21228 443-253-6897 Details www.hmlcapital.com/

Silver Associate

Platinum Associate

Real Estate Professionals, Inc.

Lima One Capital

Contact: Robert Kaetzel 518 Eastern Blvd.

Baltimore, MD, 21221 410-916-8200 Details

www.reprofessionals.com/

Justin Thompson 201 East McBee Ave Greenville , SC 29601 404-908-0080 Details www.limaonecapital.com

Contact: Stephen Kazmarek 8500 Rhuddlan Rd Baltimore , MD 21236 443-983-1216 Details

www.genesisconsultingcorporation.com

Disclaimer: This newsletter is distributed with the understanding that the Mid-Atlantic Real Estate Investors Association and the authors of articles contained herein are not rendering legal, accounting, or other professional services. Investment and business decisions depend upon an individual’s facts and circumstances and should be made only after consulting with appropriate, competent professionals.

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