Are Flipped Houses Bad for the Housing Market?

Do Flipped Homes Dramatically Change the Housing Market?

When it comes to investing in distressed homes, I’ve heard it all.

You probably have, too, especially if you’ve been in the industry long enough and have explained what you do to enough of your friends and family.

Most recently, I had the opportunity to tackle a concern from an upset buyer who claimed that the rise in renovated houses was ruining the housing market. Coming to Spokane, Washington from a larger market where home prices had risen steadily over recent years, he noticed a correlation between the higher number of area investors and associated the two. According to him, flipped properties forced surrounding housing prices up so high that he could no longer afford to live in his desired neighborhood.

But does his concern hold water?

Do increased home values affect the economy?

Or is this a chicken vs. egg argument?

The economy is cyclical, with natural periods of expansion and recession. As such, one can assume the housing market is, too, and that anything that drives up the housing market—such as increasing home values—affects the economy. But does it?

In this business, we work off percentages and margins. In a volatile economy, those margins shrink, and when the economy is good, we have more opportunity to profit.

If the economy is doing well and unemployment is low, the demand for housing increases, and in turn, so does the cost of housing. Conversely, when the economy drops, and budgets tighten, the money allocated by the average American family for general upkeep on a property is shortened to cover the basics, like the mortgage, and housing values decline. Stretch this out long enough and extreme enough, and neighborhoods values reflect the dropping home values.

It is fair to say that the economy influences the housing market more than the housing market influences the economy.

Regardless of how simplified we’ve made the economic cycle here or how many details we’ve left out, the real issue is why anyone would believe flipped houses in any neighborhood would affect their buying power. It sounds to me like we’re dealing with a potential homeowner who would rather avoid bringing value and motivation to his market rather than live among distressed homes.

Instead, flipping breathes new life into communities by giving qualified buyers a chance to live in their dream home and adds value to the hardworking homeowners in the area who don’t want to live among run-down properties.

For investor lending, Cogo Capital offers quick turnaround, excellent terms, and millions to lend. Cogo Capital serves both local and national real estate investors, real estate agents, and private money lenders in quality, multiple loans.

Let’s make our communities stronger, increase values, and make real change in this oscillating world.

If you want to make a difference in your area’s communities, join us at the Lee Arnold System of Real Estate’s Master Lien Abatement specialty lab. To learn more about acquiring houses for pennies on the dollar, becoming the go-to investor in your town for nuisance properties, and flipping for huge profit, <CLICK HERE> or call NOW at (800) 473-6051. 

Your Neighbor;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at www.cogocapital.com to fill out your fast and easy quote. Want to learn more about COGO first? CLICK HERE to get to know all the ins and out!

How to Shred Through 200,000+ Phone Numbers

How to Shred Through 200,000+ Phone Numbers

Getting through 200,000 phone numbers is doable. In fact, I’ll go as far as to say it’s easy.

Now, like most things, you can tear through these phone numbers one of two ways; the long, hard, trial-and-error way on your own or you can do it the tried-and-true way by learning from someone who has consistently done it…in 20 seconds…

Impossible?

Who thinks a phone book is durable? Could you run over it with your car without causing too much harm? Could you wedge it between a door and its frame to prop open an entryway without causing significant damage its pages? Go ahead and nod Yes.

A phone book represents more than just an antiquated way to look up one of 200,000 phone numbers. This book represents a goal; a seemingly difficult task to tackle. It’s strong, it’s sturdy, and it contains massive amounts of information.

What if you could RIP through one in seconds?

You can, and I’ll show you how…


1) Grip is Everything in the Beginning

The amount of grip you have on the phone book is directly proportional to the grasp you should have on your goal. Unless you clamp on good and tight, you won’t make a clean enough start to get anywhere.

 


2) The Better Your Position, the Better Your Success

You’ll notice when I pinch the phone book correctly, it forms a “V” or line of tiny air pockets down the fold. This is the key to a clean rip. If you’re of average strength like I am, the only way to power through 500 pages is by assuring there is space between each page.

When setting a goal, if you try to tackle every step at once without space between them, you’re not going to get very far. The success is in the space.


3) Move Quickly

Momentum is vital. Once you’ve torn through the first 20-30 pages, you must move with urgency or you could stall out. The same is true when achieving greatness. If you pause before you’ve gotten far enough to keep the pages ripping, then you run the risk of messing up the method. And what happens when you mess up the method? You lose faith that it will work for you.


4) Readjust Your Grip

To get all the way through a goal, don’t be surprised if you have to readjust your technique. If you aren’t strong enough to shred the phone book in one swift move (the same grip as step one…some people can do that!), then adopt the under-grip technique demonstrated. Then, simply twist and pull the finish the job.

We never know exactly what a project will look before we start. Sometimes, you need to change the way you address the work, sometimes it’s necessity to modify your system just to make it through. Even if you must rip each page, one at a time (i.e., break the project down into single, simple tasks and perform each one through until you finish), the point is to get it done.


5) Don’t be Afraid to Lose a Few Pages Along the Way

No method is perfect. No technique works 100% of the time. You may lose some “pages” along the way, you may accidentally pull too hard and tear off the cover. But what’s more important: preventing a few mistakes or finishing what you set out to do?


If you want to do something epic, you must trust the teacher. And the teacher needs to walk the walk.

Who are you learning from these days? Your friends who aren’t making the kind of money you want to make, or the leader who pours sweat and tears into your and won’t give up for anything?

Are you taking advice from family who looks at a phone book and believes it’s indestructible, or are you gleaming every ounce of knowledge off those who believe you can power through a goal like ripping a seemingly sturdy book in half?

If you can follow these directions, you can follow instructions to do just about anything.

You can follow someone who practices what they preach, but YOU are the pivot point.

 

This exercise is more than just a party trick. It’s proof; proof that you can do something you don’t believe you can do.


Stephen King said,
The scariest moment is always just before you start.
After that, things can only get better.’


Prove to yourself that you can do the thing that scares you. And the more you practice this by proving yourself wrong over and over, the better chance you have at tackling the really big things that scare you.

To Your Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at www.cogocapital.com to fill out your fast and easy quote. Want to learn more about COGO first? CLICK HERE to get to know all the ins and out!

 

 

To learn more about attending a Funding Tour near you, visit FundingTour.com

Closing Like a Pro

Good Sales People Aren’t Born, They’re Trained.

“But I’m not a salesperson,” you say. “I don’t need to close sales because real estate investing doesn’t require sales. That’s why I have an agent who sells the houses for me!”

Excuse me while I take a sip of my coffee to suppress my chuckling.

You could be the best in your area at marketing and creating leads. You could have all the distressed houses at your fingertips. But unless you can get the seller to sign, you’re out a whole lot of work while someone else snags up the properties. The ability to sell isn’t exclusive to used car salesmen or corporate jobs.

If you’re waiting fore deals to fall into your lap because you don’t want to “sell,” then you might as well make yourself comfortable because you’ll be waiting a while.

You need to be able to sell to create opportunity for yourself.

If you can’t close a deal, you don’t have a deal.


Though it takes practice—and for some, training—being a top-performing closer will drastically shift your real estate investing from hobby level to replace-your-job level. If you’ve been on a webinar with me, chances are you’ve heard my Circle of Wealth goals for you. First, you need to earn $250,000 in liquid capital. Do you think that first step to life-long wealth happens by putting out hobby level effort? I won’t even continue with the steps needed to create life-long wealth, because if you can’t close a deal, you won’t get much further than step one. (You CAN read more about it: <CLICK HERE>)

But closing a sale doesn’t have to be daunting, and you don’t have to be a character straight out of The Wolf of Wall Street to succeed at it. In an effort not to overwhelm, let’s start with the first 4 steps in training to be a winning closer. Master these and we’ll up your game even more.


  • Have Multiple Strategies

This is why I teach on making a 3-tiered offer. If you only give the seller one opportunity to say yes, you’ve instantly reduced your odds for success by way more than half. Even with a 3-tiered offer, you need to have several approaches ready to employ. Closing a sale is like going on a road trip. If you don’t have enough fuel, you aren’t going to get to your destination. You need more strategies than the homeowner has objections.


  • Stop Buying the Seller’s Story

When talking to a potential seller or distressed homeowner, we need to ask questions to glean as much information as possible. And when they start in on their story, our ears need to perk up because it’s that pain point that we can fix.

Never glaze over the meat of the story. Maybe it was divorce that lead to financial distress and pre-foreclosure, or a loss of a family member or a layoff for the bread winner. Whatever the root of the distress is, pay attention! You are not their councilor, swooping in to fix their problems, nor do you want to use their pain for your gain. But if you let the homeowner sob into your shoulder about their pains without offering a solution, you’re not doing anyone a service.

Get the homeowner out of their own head by selling them on the solution. You can provide them with the cash they need to start over, you can give them a life raft out of their sinking ship, you can untether them from a bad situation by providing a monetary solution. But the more you buy into their story without selling them on a way out, the more you reinforce their victim mentality and set them up for failure.


  • Apply Pressure to the Wound

Let’s say you suffered a serious wound on the leg and began bleeding out. You’re weak from the blood loss and don’t have the strength to rip off your shirt and tie it around the cut with enough force to slow the bleeding. An acquaintance is nearby with a sterile bandage in hand, but they are too afraid to apply pressure to the wound, believing that pressure is rude and unprofessional. And so, you continue to bleed.

Ridiculous, right?

You’ll encounter distressed homeowners who are bleeding out financially. For whatever reason, they don’t have the strength or knowledge to fix it themselves, and though they won’t come out and ask you to apply pressure, if you don’t, their situation won’t change.

Pressure doesn’t have to be a bad word. If the solution you’re offering someone is wise, well addressed, and valuable, then they may need a little persuasion to see it as such. When you see a wound, sometimes you need to apply a little pressure.


  • Train

I’m not talking locomotion, I’m talking education and practice. Sales people are the third-highest paid profession on the planet, directly behind doctors and lawyers. Consider how much time both doctors and lawyers spend in school and in practice before becoming professionals in their field.

Don’t believe you can just jump in and close your first deal and then get discouraged when it doesn’t work out. I’ve seen too many people give up prematurely because they didn’t understand that to be great at anything requires practice and developed skill. You can learn the skills; I can teach you that. But the fortitude must come from you.


You may have to get uncomfortable for a while. You’ll stretch your selling muscles, make mistakes, learn from them, and improve. But remember to ask yourself, “Who am I NOT to do this?”

YOU have what the distressed homeowner wants: a way out.

By not doing your absolute best to get a deal under contract, you’re actually doing them a disservice by leaving them in the bad situation you found them in. Not every deal is going to close, and that’s okay. Like the rest of business, it’s a numbers game.

Put your best foot forward, lead with love, and help others.

If you’d like the hands-on training needed to catapult you from meandering salesperson who hopes for good deals into a confident closer who enters each potential transaction with the needed skills and tools to secure a deal, then stop waiting and wishing. Act now and call us at 800-473-6051 to discuss the necessary courses or coaching to get you there.

Don’t worry, we’ll only apply pressure if you’re bleeding.

 

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at www.cogocapital.com to fill out your fast and easy quote. Want to learn more about us first? CLICK HERE to get to know all the ins and out!

 

Small House, Big Payoff

Nathan Brown had always watched the flipping shows on TV and talked about one day doing a project, but it wasn’t until he returned from a vacation when he realized it was time to do something about it. With instruction and guidance from Lee Arnold of the Lee Arnold System for Real Estate Investing, Nathan took the plunge.


“After so many HGTV, DIY Network and Do It Yourself home shows, we knew it was time to take the plunge. Calling COGO capital was the first step in a great decision. Talking with Lee and his staff, they helped me choose a property, line up financing, establish remodel goals, stage the finished rooms, list and ultimately sale the house. Our first real adventure out in the house flipping world was a little scary, but they put at ease with some guidance and direction from Lee. It was just the shoulder we needed to lean on. I have to say, we went over budget, but still made 6-months of income in 6 weeks. Thanks again COGO Team!”


After finding a small property to start on—540 square feet to be exact—Nathan purchased the property at the wholesale price of $50,000.

Construction took about 7 weeks and $14,000—a little higher than he originally budgeted, but with the project done in plenty of time, the experience went smooth. Other than having to jack the floor up a few inches in the bathroom and raise the height of the roof, the only major rehab cost went into rewiring the entire electrical system in the house. Big ticket items aside, the rest of the repairs were cosmetic, and none of the rehab went over schedule.

He was able to get the house on the market in the 3rd week of October. By December 3rd, he received an offer, and they closed on January 4th for a total of $99,900.00.

After all the holding and closing costs, Nathan pocketed a net profit of $25,031.

When asked if he had any “Aha!” moments, Nathan replied by explaining how he’d never do a house with one tiny bedroom again! He realized it was too small for his big dreams (540sq. feet, remember?), but with the total profit he earned, Nathan admitted, “I’d take those projects all day long!”

After taking a small break, Nathan plans to do more projects and implement what he learned in a larger property.

Nathan raved about Cogo, saying the loan process was “easy and seamless.”

His experience with the Lee Arnold team was instrumental in his success, too. “It was nice to have staging help and to bounce rehab ideas off the team. Any questions I had I was able to pose them and get real-time answers. I’d always wanted to do a flip, but when the rubber met the road, I still had a lot of things to learn and was grateful for my support.”

We can’t wait to see what Nathan Brown does next!


Have a deal under contract that you would like a quote on? Let us know. You can fill out a quick questionnaire at CogoCapital.com to receive a rate quote via email or you can call us anytime at (800) 747-1104 to talk to a loan officer. With millions deployed and millions to deploy, we want you to get the capital you need for your real estate investing.

To Your Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at www.cogocapital.com to fill out your fast and easy quote. Want to learn more about COGO first? CLICK HERE to get to know all the ins and out!

*definition provided by our friendly and comprehensive friends at Wikipedia

 

To learn more about attending a Funding Tour near you, visitFundingTour.com

 

Determining Your Property Values

Determining Your Property Values

Before you place a bid at a foreclosure auction, you need to understand what a home’s value is. You should also know the property’s lien position, do a title search, understand your exit strategy, and get your financial ducks in a row.


To read more about the other steps <CLICK HERE>


1) Drive by the Property

We need to drive by the property. Do not buy a property if you or someone you trust and are working with drives by it.

If you buy a property at an auction, you own it. You can’t give it back; there are no representations or warranties made at the time of the sale. Auctions are buyer-beware, with zero liability to the auction house. And if you drive out to the property and the house has burned to the ground, then guess what? You just bought a pile of ashes.

Driving by the property also helps you to understand the your market.

When you see For Sale signs in these areas, pull the fliers. Look at the square footage, the year built, the quality of construction, the asking price, and the days on market. Get more familiar with the values of real estate in your market.

Then, as you get better, you don’t have to drive all these properties. You can then just pull up a property on Google Maps, check out a 360-degree view of the street, and you’ll have what you need.

But if you’ve never purchased a property at auction, you need to drive out to the properties.

2) BPO

BPO, or Broker Price Opinion, comes from the multiple listing agent. In other words, “A broker’s price opinion is the process used by a hired sales agent to determine the potential selling price or estimated value of a real estate property. A BPO is popularly used in situations where a financial institution believes the expense and delay of an appraisal is unnecessary.”*

This tool is used by brokers and agents, lenders and mortgage companies, and loss mitigation companies. Each state has different rules and regulations for these services, such as providing the service if the the property is occupied at the time of sale. So do your research and  get acquainted with how it will work for you.

3) MLS

Here’s one piece of advice that I give all my private clients: If real estate is going to be your career path, I highly recommend that you get your real estate license. What it does is give you instant access to pull value on a property yourself.

I’ve been a licensed agent for over 15 years, and I’ve never not been able to participate in a deal because of my licence, so don’t believe the excuse that having this license limits you in term of investing.

I will often use an agent to get an opinion on value, but I will always pull my own comps to determine the value of a property.

4) Zillow

Zillow is also a great tool.

I use it because it has the most information in the shortest period of time. I will use it to sneak a peak at a property and increase my interest, but I would never use it alone to buy, acquire, or bid on a property.

The only tool I’m going to use to support or substantiate money is the MLS. It’s real-time value, days on market, comps, and more. You can gather information from all the sites (Realtor.com, Trulia, Zillow, etc.), but it isn’t going to be real-time and will cost you hours.

Bottom line, if you’re going to turn this passion of real estate into your profitable and long-term career, you should have access into the MLS at a click of your mouse. It’s the best data you can get.

5) Tax Assessed Value

The TAV is defined as the most amount of money the associated municipality can tax you on the value of the real property without you challenging them about the real value. In some states, it’s 80-90% of the FMV (Fair Market Value), but in states like California, it is 100% of the FMV.

In today’s market, most municipalities have over assessed property values in their district so that they can keep their tax base high.

(If you have a property that you know is valued at
$120,00 and the TAV is $180,000, challenge it!
Get your taxes down so you can save more money annually.)

What we’re looking for by pulling the TAV is the year built, the size of the lot, who has owned the property in the past, and who currently owns the property. We want to determine if there are any tax liens on the property and what the bed and bath count is. Often times, the floor plan will be included with the TAV, especially on newer construction because they have to present the floor plan to the building commission to get building permits in order to get a certificate of occupancy.

If this is included, take full advantage and look at the floor plan configuration. The floor plan is a big deal when selling a house quickly. If you walk in the door and WHAM! There’s a bathroom wall that hits you in the face and separates you from the openness of the living area, you’re not going to have a quick or easy time selling that property.

Remember, people buy property based on feeling. The price is secondary. If the potential buyer doesn’t get an immediate rush when walking in the house of “Wow! I like this place,” then you’re not going to sell it. That’s the real value of looking at a floor plan before buying a house at auction.

6) Comps

Get at least 1 listed comp within one mile of the subject property and the remainder within 5 miles.

The smaller radius you can get to the property in question, the closer you can determine the value.

Why do we want the comps to be as close to the property as possible?

Neighborhoods are fickle. We’ve all driven through neighborhoods that are just beautiful, and then a few blocks later, you’re wondering where you put your concealed weapon to ensure your safety. So the further out your comps reach, the more risk you inherit with those numbers.

Do your evaluation as close to the property in question as you can to assure you’re maximizing your understanding of the property value.

Look for at least:
3 Recently Sold
3 Currently listed


When you understand the property’s value to the best of your ability, you can maximize your foreclosure auction profits by determining your maximum bid.

But this isn’t just for auctions. Before you make offers on a property, you need to have all the numbers on paper for yourself to determine your maximum offer, your rehab costs, what you would wholesale the property for, and what the ARV (After Repair Value) is on the home.

Part of understanding a home’s value is understanding the value of your time. By doing a bit of due diligence on the front end, you can avoid getting into a project that won’t yield you the income you desire and are worth.

Thankfully, if you go through Cogo for you private money loan, we won’t let you get into a property that we know will lose you money. Our application process includes items for this reason; to assure that we are only loaning out on properties that won’t get you into trouble.

You’re in good hands with Cogo.

Have a deal under contract that you would like a quote on? Let us know. You can fill out a quick questionnaire at CogoCapital.com to receive a rate quote via email or you can call us anytime at (800) 747-1104 to talk to a loan officer. With millions deployed and millions to deploy, we want you to get the capital you need for your real estate investing.

To Your Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at www.cogocapital.com to fill out your fast and easy quote. Want to learn more about COGO first? CLICK HERE to get to know all the ins and out!

*definition provided by our friendly and comprehensive friends at Wikipedia

 

To learn more about attending a Funding Tour near you, visit FundingTour.com

Achieving Your Goals; a Supplemental Guide

We’ve been talking about goals a lot lately and for good reason.

If you need a refresher on what S.M.A.R.T. Goals are and how to use them to get what you want, CLICK HERE.

If you attended the Lee Arnold CEO Fireside chat this last Monday, January 8th, then you know exactly what I’m talking about. Kudos, too, for all the ambitious goals you committed to in the comments. If you gave us those goals, we WILL follow up with you!

The start of a new year is a critical time as a business owner. You need to have an action plan for the calendar year that you can stick to. Here are a few supplemental tips to help you along the way.


 

1. Clump Your Action Tasks Together

How can you marry your goals together to keep from being overwhelmed? One strategy is to think about the tasks that are optimized by being performed side-by-side.

If you are a Private Money broker who needs to add a bio to your website or landing page up to attract investors and you need to get your photo taken for your business cards, you can save time by doing these actionable steps together. First, tackle your professional photo, then put your bio up on your website.

Marry the tasks.

Is there one thing you have to do in order to get the rest done? If you’re going to send out fliers to 100 people over the next month, you first need to collect addresses and have your flier ready first.

Take your big goals, break them down into actionable, measurable steps, and then analyze all them to see what fits where.


 

2. Pass the test of “I want to do BLANK so that…”

“So that” gives you a clear outcome and an intention.

“I want to purchase a property at 60% of ARV so that I can wholesale it to another investor at 65% of the ARV so that they can make money on the deal, too.”

or

“I want to collect 100 new leads of investors so that I can build networking relationships so that I can close 4 loans in Q1 of this year.”

When you know your objectives, you can a clear focus and purpose to your efforts. Sometimes the “so that” is simply “so that I can pay my bills and not put my family in more debt,” and that’s okay. Your objectives will change and grow as you do, but make sure you have reason to pair with your S.M.A.R.T. goals and your goals will be that much easier to achieve.


 

3. Swallow your frog first.

What is the #1 thing you don’t want to do on your list? Do that first, and you’ll develop momentum for your day. This tip is particularly useful if you don’t have a lot of trust in yourself.

What do I mean?

When presented with a task, do you question whether you’re really capable of performing it? Do you agree to do things you’ve never done only to regret having comitted because you don’t trust yourself to complete the task?

Just as you need to build trust with an employer, you need to build trust in yourself that you will walk your talk. Eating your frog first thing in the morning allows you to build that trust, and it’s an excellent feeling to steamroll your day!


Every day you need to know that you are working toward a bigger vision and can accomplish your goals because you have actionable steps to take that you’ve planned into your day.

When you have a road map upon which to build an action task list with time-bound, measurable steps, you can literally design your life. If you need more help getting there, or you’re just not sure how to structure your S.M.A.R.T. goals in a way that will help you achieve your maximum potential in real estate investing, give us a call. We can get you pointed in the right direction and get you the education you need. (800) 473-6051

To Your Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Facebook:

https://www.facebook.com/LeeArnoldSystem/
https://www.facebook.com/CogoCapital/

Twitter:

https://twitter.com/LeeArnoldSystem
https://twitter.com/CogoCapital

To read our latest success story and learn how a high school dropout is now making 6 figure paychecks, CLICK HERE.

10 Questions Your Potential Buyers Are Asking

Do you know what potential buyers are asking themselves when they look at your property?

We can anticipate the basics: Will they like the kitchen? Are there enough bathrooms? But what about the underlying questions every homeowner wants to know?

By now, we know that you make money when you buy and you realize that money when you sell. Easy. If you want to fully actualize all the money you can, consider some of the questions your potential buyers will have in mind when touring all the hard work you’ve made happen.

The more you can anticipate a buyer’s needs, the better you can work those into your repair plans.

But with so many various needs and demographics to consider, how do you cater to the desires of others in a way that helps you sell a house faster without going over budget and cutting into profit margin?

Can you have your cake and eat it too?

There are a handful of questions that most buyers will consider regardless of the neighborhood, ideal buyer, and price point.

Let’s count them down!


10. What about the seller’s disclosure?

Despite how a house looks, many buyers will want to know if there’s anything they need to watch out for. An inspection will show off all the properties flaws, but you may run into a buyer who wants to know what you know as soon as you know it. For instance, if there was an old septic system buried in the backyard that doesn’t affect the house’s current operation but may impact the buyer’s decision on putting in a pool someday, they may want to know.

9.What inspections do we need?

Speaking of inspections, many buyers will do multiple checks on a property; anything that the original inspector recommends. If there’s an issue in the fireplace, an inspector will recommend a professional opinion. Any problems could result in a delayed closing and further inspections. Though these things happen, and you can’t anticipate every problem, it’s worth considering what could result in future repairs for the home buyer before you put the property on the market.

This is especially true if your home buyers are using a picky lender (such as a VA loan) who requires certain items to be fixed before securing the mortgage. Have a basic understanding of codes–what height should porch steps be? Where do you need handrails? Does the bathroom vent go through the roof or stop in the attic creating possible mold problems in the future? It never hurts to know.

8. Has the home ever had mold?

There are some states where the question won’t even cross the home buyer’s mind. But in areas of heavy moisture or storm history, people will want to know. It’s assumed that a real estate investor who has flipped a property will know better than anyone whether there is mold or not. After all, very few people see behind the drywall. But what if the job requires only a few lipstick patches like new carpet and fresh paint? You may not know if there’s a problem.

It is also assumed–because there’s a rotten apple in every bunch–that some investors cut corners. Though you and I would never dream of doing unsafe, less-than-quality work, some people have been burned and word gets around. If a potential buyer asks for an inspection or the home’s history, be prepared. Buyers may also ask about radon, so be prepared if with any applicable reports you may have.

7. Why is this house for sale?

There are so many ways a potential buyer will know the house they’re viewing looked different before. It’s possible they know the neighborhood and saw the house in its distressed condition, or perhaps they’ve pulled buyer history. And usually, the beautifully staged home gives away that the property isn’t lived in at the time of sale. But buyers often want to know a little about the house’s history and why it’s for sale. This will often work in your favor as the desire for fresh upgrades is always on the rise.

6. Have all the safety features been installed?

With new builds and gutted properties, you or the contractor could overlook small details like working smoke and carbon monoxide detectors in all recommended places. Though this should never make or break a sale, you should catch the missing devices in the BLUE TAPE INSPECTION.


https://cogocapital.com/blog/blue-tape-inspections/

 

Want a checklist of all the Blue Tape Inspection points to look for before paying your contractor’s final bill?

CLICK HERE for a detailed list!

 


5. What are the zoning guidelines?

Although this may be more clear in some neighborhoods than others, buyers will often want to know if it’s possible to split the property into a multi-family home in the future or whether other houses down the street have been turned into insurance offices. Although this won’t be as important to some as to others, it could be a factor in the purchasing decisions of others. Because this effects other aspects–such as the home value and comps–you should already know the zoning and be prepared to answer any questions that arise.

4. Who are the neighbors?

This is one of the most important non-home related questions a potential buyer will ask. It’s also a question they won’t likely ask YOU directly (or the real estate agent); they’ll observe. Although you can’t control who lives next door or behind your investment property, you can make improvements to the property to compensate. If the neighbors breed dogs that are thought to be aggressive, you may consider putting in a privacy fence.

3. Does this house have everything I need?

It’s true that you can’t anticipate the needs of every buyer; that’s why houses vary so vastly. What a young couple just starting out in life needs is different than what a large family with an aging parent to care for does. You don’t have a magic ball, but you can look at trending desires; wider hallways to support both strollers and wheelchairs, a master suite on the same level as the living space on to avoid regular stair use, outdoor space in warm areas and additional parking for boats in lake towns. But how do you know what demographic will purchase your property?…

2. What neighborhood factors should we consider before making an offer?

If the neighborhood is nice but has mediocre schools, you can assume the street draws an older demographic and can plan your design and features accordingly. If the community has a plethora of trendy shops and startup tech companies, you’ll likely be selling to millennials buying their first or second home. There isn’t much you can do about the whole area, but you can make the property work for those who are most likely to purchase the property.

Understanding factors such as where the nearest stores are, if there’s public transportation or highways nearby, and what the local parks are like can help you understand what your ideal buyers look like. Though we live in blended societies, buyers will want to know what the area has to offer, who lives down the street, what the noise levels will be, and most importantly…

1. What’s the crime level?

Safety is vital! An interested buyer will look this up online or have their agent pull reports. Finding out the crime rate, area registered offenders, and more is just a click away. Although you can’t control these factors at the time of sale, you can consider them at the time of purchase and decide if the current quality of the area crime rate will affect your selling potential.

Remember the cliche that “crime has no zip code.” Anything can happen anywhere. Fortunately, most buyers won’t look at a house in a neighborhood they wouldn’t want to live in, so it’s safe to assume most of the leads you have touring the home will already be okay with the community in which it resides, but it’s always a factor to consider.


When you can anticipate the needs of the buyer and work any plans you have for the house around the most important ones, you have a better chance of selling a property fast.

However, none of these factors will matter as much as doing a quality job without cutting corners, hitting all the safety requirements, and pricing the property right. When you do your best to create a house that anyone could call home and provide a neutral slate upon which anyone could build their life, you’ll sell as well as the market allows.

Want to increase your odds of selling faster? We can help! Call us at (800) 473-6051 to learn what program will best fit your needs. Not everyone is ready for a coach or one-on-one training, but with events, home study courses, and certifications at your finger tips, why struggle along on your own?

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at www.cogocapital.com to fill out your fast and easy quote. Want to learn more about COGO first? CLICK HERE to get to know all the ins and out!

For our latest success stories, click HERE to read how others are finding, funding, and making money on their deals.


 

Attend a FUNDING TOUR to receive a $250,000 pre-approval letter for your next property. To learn more and claim your seat today, visit FundingTour.com or call us at (800) 473-6051.

S.M.A.R.T. Goals in 2018

It’s that time of year again…say it with me, “New Year’s resolution time!”

I love New Year’s resolutions. It’s the annual time where we collectively look at what we want out of life for the upcoming calendar year and challenge ourselves to make new things happen.

Sometimes the resolution is to do that one thing you’ve been procrastinating on, and you’re ready just to get it done.

Whatever your reason behind setting the new resolution, chances are, you’ve gotten there because your intent and actions haven’t met up in the past. So, you resolve to commit. The beauty of these resolutions seems to come from some synergistic attitude of our collective human advances: i.e., we thrive off each other’s energy.

January starts off great! We begin strong, managing to keep our resolutions for a few weeks. But, chances are, you will end up relapsing into old behavior sooner or later. Frustrated and defeated, you’ll give up that gym membership, shelf the self-help books, and optimistically believe you’re just “taking a break” while you settle back into the couch for a movie marathon.

So, how do you break the cycle of this repetitive cycle between the person you used to be and the person you want to be? If you attending my December CEO Fireside, you’re not likely to be surprised by my answer. You need to set S.M.A.R.T. goals.

Setting goals can often feel like writer’s block; the blank page stares up at you and your mind goes dark. By having a guide like the one below, you can alleviate the blank stares and frustration.


If you missed the December CEO Fireside, you can sign up for my January CEO Fireside and watch the December replay as a BONUS. Click HERE to learn more and jump start your S.M.A.R.T. goal planning!


 

What are S.M.A.R.T. goals?

Specific, Measurable, Achievable, Realistic, and Time-bound.

Let’s break it down…

 

Specific

Without a distinct vision, path, and benchmarks to hit, you could end up in a different place than where you wanted to be. Like taking a hike or driving across the country, there is a great deal of flexibility in getting from point A to point B, but you should have specific benchmarks in place to assure that you’re on the right road that will lead you to the correct destination.

Break down your goals into specific steps. Define the time needed to complete tasks, how you are the right person to reach the goal, and how achieving the goal will match your efforts.


Measurable

Having measurable goals allows you to track progress, stay on pace, and bypass the questioning we often place on ourselves. Instead of wondering if the tasks you are performing are helping you achieve the end goal or not, a measurable goal gives you a definitive answer.

A measurable goal should answer the following questions:

  1. How much?
  2. How many?
  3. How will I know when it is accomplished?

Set KPIs (Key Performance Indicators) against which you can measure your growth. To develop your own KPIs, start by understanding the basics of your objectives. You can also ask yourself the following questions about each KPI you put in place:

  • What is your desired outcome?
  • Why does this outcome matter?
  • How are you going to measure progress?
  • Who is responsible for the outcome?
  • How will you know you’ve achieved your outcome?
  • How often will you review progress towards the outcome?

Achievable

If your goals aren’t attainable with the resources you have, you’re setting yourself up for failure! This doesn’t mean you have to be limited by your current world, but rather that you need to understand how to expand enough to achieve a smaller goal and work your way up.

I could unquestionably become a competitive bodybuilder! But if I wanted to grease my muscles up for a national stage competition by December, it isn’t achievable with my current lifestyle, travel schedule, and undying love for Popeyes chicken. Instead, I might decide to become the best new weightlifter at my gym first and compete in a local competition by year’s end. I could break that goal down into feasible steps throughout the year and make it happen.

Take into account as many factors as you can when setting goals that are achievable. How much time can you realistically devote to a new goal? What do you need to learn first in order to make the work more productive? What can you give up to make more time and energy? What are your financial restrictions? (Be careful with this one. As opposed to the other factors, we often underestimate what we can afford. When looking at any our financial commitments to income-producing investments, we shouldn’t lead by stating “I can’t afford that” but rather by asking “HOW can I afford that?”)


Realistic

We all have a budget of motivation. Some of our budgets are higher than others, but they are finite all the same. When you set your goals too high, you run out of motivation quickly.

How? Instead of telling yourself you’re going to ditch your nightly routine of four hours of TV and a bowl of ice cream in favor of an extra three hours of marketing and one hour at the gym (a noble goal…that may only last a few days), set a more realistic version. Try cutting your TV time in half, making space for one extra hour of marketing and one hour of reading, and trade your ice cream for fruit salad. Once that habit is formed, you can continue to improve. When you start with realistic goals and work up, not only is the task easier, you’re more likely to stick with it.


Time-bound

A dream without a deadline is a dead dream. If you don’t set deadlines for your big goals and for the benchmarks along the way, you’ll find all sorts of other things to fill that time with and your goals will go unachieved.

Start at the end; what do you want to accomplish? Let’s say you haven’t flipped a house yet, and your goal is to get your first one under your belt in the first quarter of 2018. Great! Let’s get you started! It’s absolutely possible to achieve your goal in the time you’ve decided, but since you’ve yet to complete the entire process, you may need to find flexibility in the timing of your goal. If it takes you four or five months instead of three, don’t let that discourage you. Readjust your time-bound goals to best suit your efforts, and strive for improvement.

You should know what you can achieve in one day, what you can accomplish in one week, and how that will add up to make your months, quarters, and your year.


When we set S.M.A.R.T. goals that support our desired outcome, fit into our lives, challenge our growth, and get us what we want in the end, we begin to see opportunity where we once only saw roadblocks. By wisely planning the journey before you, you can press into the work to find that you’re achieving your goals instead of just spinning your wheels. You will begin to trust yourself, set higher goals, and skyrocket both your business and your self-esteem.

If you need someone to share your goals with, leave them in the comments! We’d love to hear what you have in store for 2018, how you’re going to achieve it, and what we can do to help. If you have questions about setting S.M.A.R.T. goals or would like the support of a coach, give us a call at (800) 473-6051 and we’ll get you started in the right direction.

Don’t forget to sign up for January’s CEO Fireside, and happy 2018 planning!

Wishing you a prosperous New Year;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at www.cogocapital.com to fill out your fast and easy quote. Want to learn more about COGO first? CLICK HERE to get to know all the ins and out!

2018 Predicted Real Estate Trends

2018 Predicted Real Estate Trends; and How it Impacts You

As we roll through Christmas and prepare for the New Year, let’s spend a few minutes discussing the real estate trends you should prepare for.

WHY?

Each year, the market looks different. As much as you can, you should spend some time evaluating the professional predictions, looking at your local market, and working the trends into your annual goals to see faster, more effective growth.

According to Zillow, inventory shortages will drive the housing market. With 12% fewer homes on the market nationwide than a year ago, 51% of them are in the top 1/3 of home values. Not only are these properties out of reach for first-time homebuyers, but the average buyers looking to upgrade won’t likely move to get them.

Because of this trend in real estate, it is expected that builders will focus on building entry-level homes, giving more inventory to first-time and lower- to middle-income buyers. According to Realtor.com, housing starts are predicted to rise 3% over the year, but single-family home starts will increase 7%. This increase in residential housing on the starter-home level, according to economists, is the key to leveling out and bringing down home prices. Home prices will still climb, and even with new construction on the rise, economists call this increase nearly “unstoppable.” Home prices are expected to rise 4.1% in 2018, 1.1 percentage points higher than the average appreciation of 3%, but slower than the current annual pace of 6.9%.

The millennial generation is also expected to move further out from urban centers where many of them rent, giving up their preferred ’round-the-corner entertainment and shopping options in favor of affordable housing. As these 25-34-year-old homebuyers have families, they will also look for wider halls to accommodate strollers, as well as larger communal spaces. Homeownership rate will stabalize at 63.9% (according to Realtor.com) after having hit bottom in the second quarter of 2016.

Another Zillow predictions for 2018 shows that instead of buying new homes, existing homeowners will invest in remodeling to make their current home feel and look brand new. The baby boomer generation will also drive home design as the need for wheelchair accessibility, step-in bathtubs, extra handrails, and stair mobility access is needed.


WHAT DOES THIS MEAN FOR YOU?

Since housing prices are still on the rise, the current methods you are using to acquire properties may not be as effective in 2018. You would be wise to have more than one strategy to find cheap properties in which to invest.

While working with the city to improve neighborhoods by doing what we do best, I’ve discovered a way to acquire properties that are hidden in plain sight. These houses have highly motivated sellers and offer a huge profit. And I’m teaching it to you in the Master Lien Abatement Certification.


With our first class under our belt, here’s what attendees had to say:


To read more about what this program is, what we’ll teach, and how to take advantage of this wildly untapped market in your area before the competition takes it over, CLICK HERE TO READ MORE. And then READ THIS ONE. This is not the kind of stuff you want to just skim over. This new strategy can change your business!

Why are we teaching this new method at the Lee Arnold System of Real Estate? In 2018, Cogo Capital is deploying more money than ever. We need that money to go somewhere, and we’d like that money to go to you.

If you’d like to get involved in the Master Lien Abatement, call is now at (800) 473-6051. Space for the next available class is very limited.

UPDATE!: Demand for the new Master Lien Abatement Course is very high. Our first 2018 class has already filled and is closed. Please be advised that the next available class is scheduled for April 16-19, 2018.

To Your Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at www.cogocapital.com to fill out your fast and easy quote. Want to learn more about COGO first? CLICK HERE to get to know all the ins and out!

For our latest success stories, click HERE to read how others are finding, funding, and making money on their deals.


To learn more about how to get $497 tickets for FREE, go to FUNDINGTOUR.COM or call (800) 473-6051.

We Love OPM

- - Borrowing, Entrepreneurship

What is OPM?

Most people don’t have the personal capital to buy and renovate houses to put on the retail market for profit. Yet so many self-made millionaires make their money with real estate. So how do you bridge the gap between not having enough money for your first project and having an abundance of capital to fund larger deals, more deals, and other people’s deals (making passive income on the interest)?

How do you go from no-capital to plenty of it?

OPM

OPM (or “other people’s money”) is a great tool. Nix that, for many of you, it isn’t a tool at all; it’s a necessity to get started and/or keep going in your business.

When I was just starting out, I knew I needed OPM to do the things I visualized. I was working at a grocery store as a bag boy. I didn’t have the capital to start a project and to be honest, I didn’t have much of an idea how to get it. But I knew what I needed to get started.

I learned the hard way.

Let me help you avoid the hard way.


Don’t let the preconceived notion that no one wants to lend to you cloud your vision and your dampen your goals. People want to lend money to you, but you need to find the right people and come to them with the right deal.

Why Other People Like Lending their Money?

This one is simple. Not everyone has the time to find good deals. If you invest the time to find the good deals that others can invest in, they will flock to you. FLOCK. Remember what I always say? Money isn’t attracted to you; money is attracted to a good deal. Get a good deal under contract and finding the money to fund it is the easy part.


When You Can Safely and Efficiently Use Other People’s Money

Just like any debt, a loan from anyone should be used to produce income with. We’re obviously not talking about taking out a loan to fund your vacation; that’s . No matter who you borrow from, make sure you’re both clear on the terms, the numbers, the expected communication, and the time frame of the loan. Err on the side of over-responsible, especially if you want to borrow money again in the future.


The Worst Ways to Find OPM

– Family

– Friends

When you need something, your knee-jerk reaction could be to call up those closest to you. It’s what I did, but I don’t advise you to follow in the footsteps of my frustration. Why? Because even if your family and friends have money to lend you–because you wouldn’t ask them if they didn’t–they aren’t likely to see the investment opportunity, they see you. YOU.

My friends and family saw me as a punk kid with a wild dream. They told me to stay in school and keep my job at the grocery store so I could one day be an assistant manager if I tried hard enough. And, looking back, I don’t blame them. But, once I proved myself as a viable investment by putting deals together that created consistent income, their wallets wiggled open. For me, this took years of turmoil. I got on the phone and raised capital through hours of networking, I trail-and-errored my way up until I found mentors to teach me what not to do.

Now, I send a single email, and I’m flooded with positive responses. I’ve done deals with my friends and family during my career, and I’ve been able to show them the higher return on their money real estate can bring. I spent time proving that I have a business model that makes sound financial sense, and you should, too.

Get a few deals under your belt, show your family before and after photos and copies of your profit checks.

But how do you find money in the meantime?


The Best Ways to Find OPM

– Networking with Strangers. This method is great because it forces you out into the world of your “competitors.” Most people are afraid to rub elbows with their competitors, but I’ve never understood that. You shouldn’t view other people in this business as opponents; you should consider them as potential capital partners. You should be building relationships with fellow investors through your networking events if you’re following my Rule of 56. I don’t ask you to meet new people just to expand your circle of friends. We’re networking for potential partnerships, among other things, so take advantage. Real estate investment seminars are a great place to network with strangers, as are foreclosure auctions.


If you haven’t attended one of our events, I encourage you to make it a priority in 2018. We put great people together in our event rooms, so you have the opportunity to network together. When you find a great deal, you can call up one of these peers.

Visit Fundingtour.com for more!


– LinkedIn can be a great way to network and find equity partners and private investors. I never advice spending too much time on social media–as it can be one of the worst time-sucking holes we fall into–but when you know how to use LinkedIn, Facebook, and other social media platforms to meet fellow investors, you have the potential of building valuable, wealth-building partnerships.

– Private Money Lenders like Cogo Capital. One of the reasons we see new investors visiting our website daily is that we have something valuable to offer: a safe and secure investment. Our investors deploy money for short periods of time and get a check every month from the borrower. Everything is underwritten, in order, and the title work is done for them. With a turnkey package ready to go, our lenders love this! And in turn, our borrowers find the capital they need to do the work that will make them wealthy. Remember that when you’re out there finding great deals, you are bringing significant value to anyone who has more money than time. (Sounds a lot better than getting on the phone with all your friends to round up some money, doesn’t it?)


What We Do with OPM

There are two things you can bring to a partnership: Money or Time. If you have both, you don’t need a partner. If you don’t have the money, guess what your end of the bargain is? Time. You need to put in the time to research, pull lists, write letters, make calls, meet with sellers, write contracts, and put the deal together.

Once you have a deal all wrapped in a bow (the bow is entirely optional), you have something tangible to offer a lender. When you bring a deal to the table, a lender looks at the DEAL that you have under contract and not at YOU (with whatever past you have tucked in your back pocket). In fact, private money lenders like Cogo Capital don’t pre-qualify you based on YOU. We are an asset-based lender who has lent millions and has more money to deploy than you’ll ever need, and we deploy that money based on the opportunity you bring us.


When you take yourself out of the equation and get really good at getting great deals under contract, finding OPM isn’t going to be a problem. Prove yourself first if you eventually want to use money from your friends and family. Or, better yet, get to a place where you don’t ever need money from your friends and family and lend to them instead.

If you believe you have a great deal, visit us at https://cogocapital.com to fill out a brief questionnaire. You’ll receive a quote via email, or call us at (800) 747-1104. We’re here to lend you OPM. It’s what we excel at.

Yours In Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at www.cogocapital.com to fill out your fast and easy quote. Want to learn more about COGO first? CLICK HERE to get to know all the ins and out!

For our latest success stories, click HERE to read how others are finding, funding, and making money on their deals.