Here’s his best advice to other REIs

“It is far too easy to quit when a few of the inevitable real estate problems arise … your vision must inspire stronger motivation and action than the paralyzing disappointments.”

He should know. Almost 10  years ago David Toynbee suffered a traumatic head injury at the age of 25. He was  given “a 50-50 chance of dying or being a quadriplegic.” With a strong will to continue his life, he defied the odds and walked out of the hospital three months later. The following year, he regained his ability to read, his driver’s licence and job.

Quite and inspiration to anyone in a devastating accident. But David went on to defy the odds and tried his luck at flipping houses. We picked his story because his strategy aligns so much with what we teach here at Part-Time REI. 

His Strategy

Like any good student, David read up on his subject. He found inspiration in books on real-estate investing . And furthermore gained the investor mind set and the motivation to purchase his first investment property. He also joined the Langley, B.C.-based Real Estate Investment Network to learn more about building a portfolio of properties. Something else we recommend; surrounding yourself with like-minded people.

He is primarily a buy-and-hold investor, focused on generating cash flow from his properties. Cash flow is “the most important factor in sustainability,” he says. Adding key points to finding good areas and opportunities to add value with renovation improvements and/or changes of use.

David soon realized that after a few years, his first investment property had more equity in it than what he could possibly save after 20 years in his day job. This was the first realization that real estate investing was an avenue worth investigating for him.

He has also learned valuable lesson on leveraging the right people in his business. Once he hired a property manager with out interviewing them and outlining his expectations. That hurt him more than it helped him he says. Lesson learned.

Do you have a success story that you would like to share with Part-Time REI?

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What success stories give us is the inspiration to believe that we can overcome obstacles that are in the way of achieving our goals.
Here are just a few success stories that we found on the web. Hopefully they will inspire you to get started!

1. http://www.kiplinger.com/article/real-estate/T010-C000-S002-a-real-estate-success-story-justin-pierce.html

2. http://www.creonline.com/beginners-keep-at-it.html

3.  http://www.biggerpockets.com/forums/223/topics/115094-21-months-in-15-deals-either-done-or-in-the-pipe

4. http://www.flippinghomes.com/case-studies/

5. http://www.creonline.com/you-can-flip-houses-in-buyers-market.html

Got your own success story? Feel free to share it with us!

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Or connect with us  

The first thing you have to realize is you will have to think about things differently. Think about investing differently. Think about saving differently. Think about earning an income differently.

A strong, successful investor in real estate realizes that a paradigm shift happens in your mind. A person goes from ‘How do I earn money? to ‘How can I save money’? The beauty in this mindset is one paramount realization. There are always limits to how much you can save; but there is no limit to how much you can earn. It is the biggest shift in thinking you will have to make.

A good example of this is Robert T. Kiyosaki author of Rich Dad; Poor Dad and his cash flow quadrant. Your goal as an investor is to be in the bottom right hand quadrant where your money works for you. The ultimate goal for anyone flipping houses or investing in real estate is for investing to be their sole source of income.

Saving money to get rich or to achieve a comfortable retirement is not a good formula. Think about it. You are sacrificing the convented lifestyle right now in your life. Do you want to live a modest lifestyle and settle for a modest retirement? Of course not. And keep in mind that Social Security is anything but secure right now.

Reward comes with risk. The more secure and safer you are with just saving your money the less chance you will actually achieve financial security. Don’t say “I can’t do this.” or “I don’t know how.” Think “How CAN I do this.” If you think you are going to fail then unfortunately you probably will.

So you are probably wondering how to get there. How to gain that confidence to get into that investor mindset. First and foremost educate yourself. Education plus action is the key. Part-Time REI has a Flipping University to help you get started. Our team is also big promoters of mentoring. We believe it is the secret to success. Get connected with the right people.

To learn more about Part-Time REI visit us at http://part-timerei.com/

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Paris, France

Like all great cities, you can spend months in Paris and barely scratch the surface of the city’s cultural treasures. It has museums galore, stellar shopping and busy cafés perfect for people-watching. Follow Anthony Bourdain’s advice: Do Paris right. Fall in love with Paris.  See signs of the City: Paris.

New York, New York

New York is true to its roots and remains a city of immigrants with inspiring architecture and a thriving arts scene. Take in a show on Broadway, shop in SoHo, spend a lazy day in Central Park and explore the city’s diverse neighborhoods. Inexpensive fun: New York on a budget. See the signs of city: New York. Watch the Lost Girls get lost in NYC.

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Rome, Italy

The Eternal City Rome celebrates its long history with monuments, churches and restored ruins that offer a glimpse into life during the days of the great Roman Empire. Celebrate the city’s roots and immerse yourself in the culture over a heaping bowl of pasta and a taste of gelato. See all the reasons why we love the Italians. Hungry? Get a taste of Italy. See Anthony Bourdain’s layover in Rome.

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Cancun, Mexico

Miles of beaches, endless luxury accommodations and a nonstop party atmosphere in Cancun have transformed this once sleepy village on the Yucatan coast into one of Mexico‘s most popular tourist attractions, particularly during spring break. Take a tour of Cancun’s best attractions. See the party capital’s life after dark. Looking for a place to dine? Check out Cancun’s must-eat cuisine.

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London, England

London is a cosmopolitan city with a unique blend of historic traditions and a hip, modern culture. You can enjoy tea and crumpets and celebrate the city’s royal roots before heading out to a slick gastropub for gourmet dinner and drinks. From the Beatles to the Royals, see why we love the Brits. See the most popular attractions in London. Sport fan? Check out London’s football stadiums.

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Miami, Florida

The American Riviera, Hollywood of the East, SoBe, or the Art Deco District — whatever you call it, Miami’s South Beach is hot year-round. The embodiment of excess, South Beach is an international playground offering non-stop nightlife, sandy shores, unique architecture and plenty of eye candy. Spice things up with a stay at Miami’s super-sexy suites. Cool off with a dip in Miami’s best hotel pools. Experience glamour and luxury Miami style.

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Orlando, Florida

There’s fun around every corner in Orlando with wild roller coasters, twisting waterslides and theme-park fun. Mickey Mouse certainly plays a starring role in the festivities, but there’s plenty of magic beyond the realm of Disney. Planning a family vacation? Check out these kid-friendly hotels in Orlando. See our list of Orlando’s top 5 attractions. Where do the locals eat? See our picks for best local restaurants.

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San Francisco, California

Bring a hearty appetite and good walking shoes to the City by the Bay. For a quintessential San Francisco experience, climb aboard a cable car, peruse the farm-fresh goods at the Ferry Market, stroll through Golden Gate Park and board a ferry to the island of Alcatraz for a dose of history and great city views. Nature lover? See the national parks just outside of San Francisco. Check out the endless things to do in San Francisco.

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Myrtle Beach, South Carolina

As the largest resort along South Carolina’s 60-mile Grand Strand, Myrtle Beach is the East Coast’s ultimate vacation hub. The town teems with summertime action along the Strand with beaches, amusement and water parks, restaurants and live entertainment and a host of hotels ready to pamper guests young and old. Taking the whole gang? Check out our picks for family fun in Myrtle Beach.

Doug Wertman, flickr

Branson, Missouri

Branson is an unassuming vacation destination with small-town charm and big-city entertainment in the heart of the Ozark Mountains. Millions of visitors come each year to see a show at any of the 50 theaters and enjoy outdoor fun on the lake. Check out our picks for things to do in Branson.

– See more at: http://www.travelchannel.com/interests/travel-tips/articles/top-10-vacation-spots

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“Tell me and I forget, teach me and I may remember, involve me and I learn.”
― Benjamin Franklin

Every one of us out there in life wants to be successful. We want a healthy, happy family, and we want our businesses to thrive. While few in business ever really want to talk about it, unquestionably our biggest fear is failure. Many of us out there work extraordinary hours to ensure success and provide for our families. Like Mark Warner said “My success was due to good luck, hard work, and support and advice from friends and mentors. But most importantly, it depended on me to keep trying after I had failed.”

So let’s talk about mentoring. It’s how people who are great at what they do learned, and it’s how our team learned. It has been said that experience is the best teacher.  But what we suggest is why spend valuable time reinventing the wheel? Part of our Flipping Houses University series talks about learning from others mistakes and the value of time.  Instead, if you learn from those who have been successful before you, you become more successful much faster.

Don’t get us wrong. We highly recommend reading as many books ( we recommend The Book on Flipping by J. Scott) and listening to as many pod casts you can on investing in real estate. As experienced and active investors we are keenly aware of how to lay the foundation for a successful real estate investing business while simultaneously staying ahead of current markets, trends and practices within the housing market. You will definitely put yourself ahead of others by educating yourself and learning the basics. But also check out conferences, seminars, bootcamp etc on flipping houses. Find out what information you can learn to increase your own success.

Our point is some of the greatest, most successful people out there were mentored. You might find it interesting to find out who some of these list as their mentors. Check out this list.

Here are some notable ones

Oprah Winfrey mentored by Mrs. Duncan, her 4th grade teacher.

General Colin Powell mentored by his father, Luther Powell.

Dr. Martin Luther King mentored by Benjamin E. Mays

Henry David Thoreau mentored by Ralph Waldo Emerson

Quincy Jones mentored by Ray Charles

Warren Buffett mentored by Benjamin Graham

Let’s take a look at the last example. At the moldable age of 21, Buffett came across the renowned American economist and professional investor Benjamin Graham.  Warren Buffett, through Graham’s mentoring, became the world’s most successful investor and the most prolific mentor-mentee partnership was born. Warren Buffett went on to own Geico, the company run by his mentor by his own company, Berkshire Hathaway.

The bond shared was a teacher-student one, the in depth understanding and knowledge possessed by Benjamin Graham left the young Warren with the right concepts and perception of how investment systems operate. This mentee used that insight to become one of the richest people in the world. If you take a closer look at some of the most successful figures throughout history, chances are you will find the majority had a mentor that made a positive impact on their lives.

Here are a few of our favorite quotes on mentoring.
“You know, you do need mentors, but in the end, you really just need to believe in yourself.” ~Diana Ross

“Alexander the Great valued learning so highly, that he used to say he was more indebted to Aristotle for giving him knowledge than to his father Philip for life”. ~Samuel Smiles.

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What keeps you up at night?

What keeps you up at night? Is it the second mortgage on your home? How you will pay for your kids’ college? Do you think, if only I had a supplemental income, then I could worry less. These are exactly the questions that led us to start blogging about investing in real estate and flipping houses. Maybe the next question you should be asking yourself is if you ever thought about becoming a part time real estate investor?

Maybe you feel like you work non-stop and feel like you don’t have time for anything else. You probably like all of us here at Part-Time REI value your time with family and friends. But if you are concerned about your financial future or retirement—maybe not enough to dedicate significant time to learning anything about the ins and outs of the ever changing stock market–maybe flipping houses is the answer for you.

Or maybe you are just looking for some disposable income. Did you know that in 2012 the average return on a flipped house (in top 5 markets) was 49%?  That should would help with that trip to Italy you have always wanted to take. Point is if you are interested in learning new things and are hands on, if you expect a lot from your self and want to make sure those you love are taken care of maybe you are destined to be successful at flipping houses.

Let’s talk about some other benefits of being a part time REI. For starters you have complete control over what you buy and what you put into a project. This can be closely estimated using a property repair estimate sheet and sticking to your system. Best advice any blog can give you is to have a system and stick to it which is why if you are methodical this might be just the extra income you have been looking for, especially if you educate yourself and understand the fundamentals of the process.

Another benefit to flipping homes part time is you have a much quicker return on investment than say waiting on your stocks to go up and cash out. The definition of flipping homes in its essence is completing the whole buying and selling of the home in less than six months. Rehabbing is a better method of investing in real estate than speculating. As a rehabber, you control most aspects of the transaction and aren’t dependent on the market conditions to make a profit. Thus, you can have predictable and repeatable financial results. Now is the time to become a part time real estate investor by flipping houses. Make that first step to secure your financial future.

a financially secure future awaits…

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A second look at Flipping Houses in the News

Since we posted our blog about flipping houses in the news there has been even more buzz about rehabbing. Enough that we felt some of the more newsworthly stories deserved a second glance.  It seems every day there is a new list of the “Top 5 Hottest Markets For Flipping Houses”.   Here’s a few articles worth reading on various markets around the country.

CNBC ran this story on how the housing market was heading into the spring selling season stronger than the previous year.  Los Angeles saw some of the earliest signs of the housing recovery.  The story discusses bidding wars and the return of house flippers for the first time since the bubble burst.

Shady investors helped create this mess, but legitimate investors have been an essential part of the housing recovery.  The reason for this is that during the housing bubble, speculators artificially helped inflate prices.   Now, rehabbers are helping to stabilize neighborhoods and preserve, if not raise, surrounding home values.  They are also luring first-time buyers into the marketplace.  But the how long will this fortuitous situation last?  Price increases mean some flippers may not be able to purchase homes and make significant profits.  Don’t wait until this situation passes you by to get into the game.

Flipping houses is on the rise.

According to RealtyTrac’s Midyear 2013 Home Flipping Report , house flipping was on the rise in more than two-thirds of housing markets.  These included New York, Washington D.C., Chicago and several Florida areas–some of the hardest hit with the foreclosures epidemic.  Nationwide, over 136,184 homes have been flipped.

RealtyTrac’s top 5 states for house flipping are as follows:

1. Washington DC, 80%

2.  Nebraska, 62%

3.  Oklahoma, 35%

4.  Pennsylvania, 31%

4.  Florida, 24%

“We’re seeing house flipping exceed what we saw back during the height of the housing bubble.”

—Daren Blomquist, vice president at RealtyTrac

The housing bubble burst caused a ripple effect in other markets, including Nebraska, causing home prices and demand to drop off in recent years, Blomquist said.  That occurred also in Oklahoma and other Midwestern markets.  Now that consumers in those markets have their confidence back , home prices in those markets are rebounding at a faster rate than almost ever before as the market plays catch-up from the down years.

Post a comment below and let us know how your market is doing.

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You don’t have to be Barbara Corcoran  to be a successful real estate investor.  Hers is story is a good story though, as investing in real estate goes.  Most of us know her as a very successful real estate investor from New York City who propels and smashes dreams on the hit  TV show Shark Tank .  But she was an admitted under-achiever, making straight Ds and working as a waitress.  Her story is inspiring; taking a loan of $1000 from a friend and turning it into a real estate empire that later sold for almost 70 million in 2001. Today Corcoran’s net worth is at a reported 1.5 billion.

Barbara Corcoran

One of Corcoran’s biggest mantra’s is “Perception Creates Reality” and there are plenty of everyday people out there that have created a very successful reality in flipping houses and investing in real estate.  The key is doing your research and educating yourself on the real estate market trends.  There are tons of success stories out there.  For example Justin Pierce  a former marine, was able to buy homes for cheap, rehab the properties and sell them for a huge profit in the Washington, DC area.  Matt Kearney from Massachusetts purchased a home for just $45,000 in January. After the rehabbing was completed in April he was able to sell the home for $116,000. Nice profit.  Point is success can and is happening for people across the nation from investing in real estate inside today’s market. What all these real estate investors have in common is that they took action and stayed true to their system.

Something that is obviously fundamental to flipping houses and investing in real estate is correctly calculating the amount of money it takes to flip the property and properly market it.  Unfortunately, many novice flippers have perhaps looked over this important piece of the real estate investing puzzle and found themselves in some trouble.  Don’t get caught up in TV programs about flipping houses. We cringes when we hear those infomercials that suggest it’s an easy way to get rich.  It is imperative to make a first time visit to a property you are interested in then you can fill out your Property Repair Estimate sheet.  Great thing is this can normally be done on a lunch hour, and then you can accurately estimate what it will cost to flip the house.  Pierce notes, “The two real keys to this business are knowing what the property is going to be worth after you fix it up, which isn’t easy, and knowing your costs.”

For more info on this topic visit here.

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