G.W and his Hubzu story

I was never a big fan of Hubzu until recently one of my clients closed a deal with them fairly straight forward. I want to share with you a story from one of my client, G.W and how he was able to add another great deal into his rental portfolio.

If you never heard of Hubzu before, it is simply an Ebay of investment property where you can actually buy investment house online, sight unseen (If you want to). Just like any other deals, we ran into a couple of hurdles but at the end, we were able to execute the deal at the closing table. It was a quite interesting deal, so I want to share it with you.  Continue reading “G.W and his Hubzu story”

A story about Elva – and why Women make great Real Estate Investors

I am surprised to see the lack of women in the field of Real Estate Investing. If you walk into any investment club. It is not hard to notice that the room is predominately men.

Besides Wayne, I also have the honor to help Elva this year to get her 1st rental property under her belt. Some people I once knew back in the Rich Club took more than a year to research in real estate, take all the courses, but never started. Not to mention that those period were one of the best time in the history to acquire Investment Real Estate

When I first met to Elva, she knew nothing about Real Estate. What has Elva done differently compare to other folks to acquire her 1st rental in a competitive market, in such a short amount of time exposing to the field?

Working with Elva, I realized that women could make great Real Estate Investors! They edge men over a few points. For Example:

1. Attention to details:

The devil is in the details as we know. Guys like me usually suck when it comes to detail while gals usually pay great attention. I can’t tell you how many time I got screwed over because I overlooked a house during the inspection, or doesn’t get down to the nut and bolts with managers and contractors.

This is particularly useful when you go through a final walkthrough on a project. I usually bring wifey when I go see the house and after the contract finish the jobs for this very reason.

2. Ask for help

Men tend to have more problem when it comes asking for help than women.It hurts their ego or something, or they think DIY is cooler. That is the mindset of the S in Robert’s quadrant that you need to move away from.Real estate is a people business with lots of moving parts. If you can market and find your own deal, fix it up, then lease it or sell it yourself – All power to you! You will make good money.

However, if you want to make great money and move to the B quadrant, it’s time to leverage out and learn to build a system instead of DIY. The easiest way is asking for help! and never forget to say thank you. As long as you are serious and demonstrate your highest level of commitment, you will get the help you need.

Always seeks for help, always say thank you, and always helping other people. that’s Elva advice to new real estate investors

3. Considerate 

This is where most men are usually not good at. If you think this does not really matter, try not to open the car door your girl or somehow manage to get only one pair of chopsticks for yourself at dinner time and see what will happen. (I am guilty of both)

These soft skills come in handy when dealing with people directly. It might as well set you apart from other investors. For example, I consider myself a good boss by always brought lunch for my contractors whenever I come visit the job site. Elva took it a step further by order pizza directly for lunch when the contractor solved an issue that saved her money. By always say thank you and show appreciation for the people that works for you and with you, it created a strong dynamic and bond the team together. Stuff will get done lot faster and smoother than usual.

Relationship is bonded by either fear or trust. You want to be on the trust side.

 

 

That is it guys and gals. Elva was able to user her unfair advantage to score a deal before the year is over. She incorporated Wholesale, HELOC and BRRR into her 1st deal, which is somewhat considered an advance strategy. Everybody has a story on their 1st deal and how they get started in real estate. This is Elva and her story.

What would be your story?

Turn of the TV – Go out and make history!

 

 

 

How to get started in Real Estate – A Real Life no drama story

Couple months ago, Quang was broke and lost in life. He bought my mentorship course at $50,000 a piece and he was able to buy his 1st investment house, make a killing and become rich couple months later. Continue reading “How to get started in Real Estate – A Real Life no drama story”

the lunch that cost 175k

Just want to share a story today on how I bought my current resident and some lesson learned. It was a typical Friday and i was working from home, looking at the clock and getting ready to hit the tennis court. Out of no where a senior investor I recently met call me up for a late lunch. Without a second thought i change my lync status at work to “away” and quickly hoop on a car to see him.

As always, I learned something new from him every time we met but this time is a LITTLE bit different. he received a phone call from his friend complaining about an agent won’t agree to submit a low ball offer on a house. After learning about the house and see its value on paper. we went see it, like it, and submit an offer the next day and got accepted.

Long story short, that “lunch” ended up cost me a fortune  and I have no intention of moving.

So what was the lesson learned?

  1. Really know your market. Good deal often need quick decision. The year of “give me a couple of days to think about it” is over.  In the current market, You will have a couple of hours to make decision on a good deal before somebody snap it in front of your eye. I won’t be able to make a 175k decision in a couple hours without really knowing my stuff.
  2. always carried a loaded “financial” gun and ready to fire any time you need it. In order word, you should have multiple tool in your tool box always be in a ready position to buy at any time. You never know when a good deal will come up. I rather be ready and have no deal to buy then have a deal to buy but have no money. Get your credit line ready, cash save up, relationship built and maintain with your banks, partners, LP at ALL time.
  3. Have multiple exit strategy before entering a deal. When the properties is contracted, you could always wholesale it, owner finance it, flip it, rent it, or move and live in it. This time i select the last option just because i like my deal so much.
  4. If you work with an agent, make sure he or she is also an investor. This is a bias statement but the only reason i was able to get this house is because the all the other agent refuse to submit a low offer because low offer often or not damage that agent reputation. This house obviously has a problem, and the seller has some issue and the other agent, without an investor mindset couldn’t see pass through it. As an investor, we look for problem and we solve problem. I too, struggling whenever or not to put on my realtor hat or my investor hat. I happened to execute everything correctly in particular case.

well that’s it. Happy Monday. here is a pic of me and him and Jenny before we purchase the house

Go out there and get your money straight.

I can teach American capitalism using a jar of marble

As a kid most of us know the game of marble. The name of the game is to collect as many marble as you possibly could.

What do you do when you don’t have any marble? You have to find one 1st. You could either dig up around your yard to find one. Or if you are lucky ask your mom and dad and they will provide you some marble.

Continue reading “I can teach American capitalism using a jar of marble”

Focus on your real goal

It is very easy to lose your real focus and start chasing the money in real estate.

I am pretty much speaking for myself here as i am struggling with this problem ever since. My Real Estate goal has always been created enough passive income to live off from it and never have to work again in my life and spend more quality time with family and friends. But as i notice the more houses I have, the more i got pulled into the business, and the more involved i am. The bigger real estate goal I set, the more equity it will require me to reinvest back into the market. The more time i need to spend time to acquire the necessary knowledge. I have to basically keep working and keep pushing as my goal is now a sky-high goal

This is does not mean that you should lower your bar and start padding yourself on the back and slack off. This mean that you need from time to time  swing back if you are intentionally gone off balance for a while and reflect on yourself. I am guilty of going off-balance for a very long time. When the eye start to go blind and the mind started chasing only the money itself – I realize that it’s time to swing back and reflect on yourself.

We have a saying that take one step back in order to take ten step forward. this is always right.

I suggest we all take a moment to reflect on your real goal. What’s really important for you? I hope it’s not just all about money. For me, it’s about the people around you. The people who believe in you when you have nothing to show, go with you to places, and help you along the way.  The love, the friendship, the memory, the ..pain that you made during the journey that is priceless. And the most important question: How many people you have helped along your journey?

 

 

There is a saying that If you want to become a billionaire, then help a billion people by Grant Cardone. I will live you with that thought

Simple, Boring but Sexy

I just shared this success story bellow on Bigger Pocket. If you haven’t done so. I suggested you doing so. this is the great place for new folks to get started in real estate. I have no affiliated with Bigger Pockets but through them, i was able to met wonderful people who now became friends and co-leagues. I want to give back to the community by sharing my success stories and motivated new landlords. Bellow is the post:

Hi Everyone,

I just want to share another simple, boring, but sexy deal to motivate new landlords and to show them that real estate investing does not have to be complicated. with commitment, persistent and the willingness to put in the work. Anybody can do this.

This is a turned key house ready to move in that i bought 3 years ago for 87k at 20% down. i made No immediate repair and move in immediately. PITI is around 650 a month. 3 years later, i moved out and was able to rent it out for only 3 days on market at the market rent of $1300 a month.

The point of the story is if you can, and especially when you starting up – buy your personal resident with an investor mindset. This is kinda hard but I done it, other people done it (house hacking). Even on the new house that I current live in right now. i still have to make sure that in the event that i have to rent it out, the market will still be more than enough to cover the PITI. This will add a plus to your mobility factor and the ability to snatch up good deal.

To sweeten up the deal. I was able to rent out my room on Airbnb and generate decent cash flow to help with the bill. On top of this, Remember to set up a HELOC on your house before you move out. This allow you to access the equity of the house without selling it.

An investor once told me that fix up your rental as if you don’t mind moving in. Screen your tenant super hard but then treat them with respect and dignity. You will have long-term tenant and they will stay with you long term. I’ve been following his advice all the way until now

Happy investing

Who just got screwed?

Well. I am in closing as of right now for almost two hour. and the two buyer in front of me can’t wait until they get the house funded. They said the 1st they will do is paint the house. The moment i get the check. i will hit the publish button and post this.

Instead of bragging about how much i made in this transaction. Let me ask the reader a question. The Buyer is a winner because they get the house with almost no money out of pocket since this is an FHA. The selling agent is happy to get her commission check, the listing agent is happy to get the commission check. Title company is making a fortune out of the transaction. And the Seller of course is happy because he sold the house at the price he want The seller partner on the deal is happy as well getting her money double. The loan originator and the bank is happy because all the fee they made.

Soooo the question is: Is this a win win win win win win situation

Or

Did somebody just lose their shirt and got screwed? Who take the financial risk? Not the buyer since they put almost no money down. Not the seller since he got what he wanted, not everyone who feed on fee and commission?

Who just got screwed?

Btw this is the house i’m selling and all the picture is below

 

And of course my fancy check after 2 year of hard work on this deal

FullSizeRender

 

Property 13 – sold

-I was working my day job as normal and this town house show up on my email list. After a couple phone call we negotiated the price and decided to move forward with the purchase. Since it is a small deal and probably no bank can finance this. I pulled in one of my partner and together we share the building 50/50

2014 update: This is my 1st time doing section 8 and my property manager didn’t get along with the tenant. and thing keep on breaking needless to say that thing didn’t go well and i have to move them out and rehab the house. i’m looking to break even on the rent

2015: after the old tenant move out. i rehab it nicely and move in a good tenant. now i see the burden of syndicating a small deal: you do all the work and can’t charge your investor

more because the small rent wasn’t enough to cover your fee. I decided to sell it to an investor which is now my good friend for a small profit

2016 update: Unfortunately only after a couple months i sold it to my friend, the house flooded in a history flooding event in Houston and destroy all of the beautiful laminated wood i put in. it was heartbroken to see the after match of the flood.

Fortunately thanks to my awesome PM. the tenant was very good and did not complain. he worked with my friend to coordinate all the repair. after the flood remediation, he repair all sheet rock and tiled the property back. nice and clean. I just heard yesterday that the tenant renewed for another year and property value of this neiborhood and been increasing ever since.