Part Time REI » Team Building

Podcast 06: The Most Important Team Member

Erik Hitzelberger — Tue, 29 Jul 2014 16:08:18 +0000

In our last podcast, Bryan and Erik talked about building your team and the different levels each team member make up. This week they discuss the most important team member…YOU!

The Most Important Team Member

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The Do’s and Don’ts Of Investing Part 1

Erik Hitzelberger — Fri, 25 Jul 2014 15:55:23 +0000

When someone decided to try their hand at flipping houses, often the first question is, “where do I begin?” Today we will go over a few do’s and don’ts when starting out your flipping career.

1.) Don’t Forget to Do Your Homework
Not many people naturally know about investing in real estate. That is one of the reasons we exist; the help educate future investors on how to actually invest part-time. Don’t jump into something you know nothing about. Do your homework. Know what you are getting into. Flipping is not as easy as the TV shows make it look. Just because you saw it on TV, you read it in a blog post, doesn’t mean you are Barbara Corcoran from Shark Tank okay?

So take the time to learn your craft, do your homework, read the books, listen to the Podcasts, and check our our Flipping Houses University while you are at it.

2.) Do Research Your Farm Area

What is your poison? Do you like single family houses, multifamily, or commercial. What ‘s profitable in the area you plan on making your farm area? Is it better to flip, buy and hold, wholesale, or is land-lording the way to go in your market? These are all good questions you need to check into. Also make sure if you do not have your real estate license that you get a good Realtor on your investing team. She can help you find comps to potential investment properties and furthermore help you research pricing and rent levels.

3.) Don’t Invest in Something You Don’t Understand

This kind of goes back to the #1 rule when investing in real estate. If you try to invest in something you don’t know, how can you be successful? To quote the most successful investor we can think of, Warren Buffet, “Never invest in a business you can’t understand.”

We would be wise to adhere to Mr Buffet’s words of wisdom. If you don’t get it, then maybe flipping houses isn’t your retirement plan after all.

4.) Do Surround Yourself with Like Minded People

One of the best ways to learn about investing in real estate is to surround yourself with successful investors. Ask them questions, a lot of questions. Go to networking events. Join an online chat room about flipping houses. There are also plenty of cities out there that have REI groups that you can join and get the investor mindset.

Be sure to check back next week for Part 2 of The Do’s and Don’t of Investing.

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

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Podcast 05: Building Your Real Estate Team

Erik Hitzelberger — Mon, 07 Jul 2014 16:47:14 +0000

Today in our next podcast, we will be discussing your real estate team and why you need it. In this episode Bryan and Erik talk about not getting overwhelmed by building your real estate team. They will discuss who is on that team and what responsibilities each team member has.

Building Your Real Estate Team

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

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3 Questions Real Estate Investors Must Ask Their Agents

Erik Hitzelberger — Mon, 26 Nov 2012 04:35:06 +0000

As a part-time real estate investor, your REALTOR is one of the most critical members of your team. She can help you find deals quickly, make recommendations about the level of finish required for the area, and market the home to sell quickly. However, bad advice in one or more of these categories and your profit quickly evaporates. By asking the following questions, you can ensure this important role is filled by someone who will help you achieve your fix and flip goals.

What type of investing do you do?

If the answer is, “I don’t invest,” you need to find a new agent. To be successful, you need someone who understands the real estate investor mindset, someone who can look past the current condition of a property and see its potential and someone who has a rough idea of what it takes to get from that current condition to retail-ready and then to closing. The average agent thinks a 5-10% discount is good and has no idea what a rehab costs. You must avoid these agents at all costs if you want to be successful.

How many other investors do you work with?

The best answer to this question depends on the size of the market and what each investor is trying to accomplish. Ideally, you will be the exclusive client for the area/property type you are looking for. However, this is not a requirement if you believe the agent can find you the deals you are looking for.

You also want to be comfortable with which deals the agent selects for himself. Since you are working with an active investor, you are also working with a competitor. Unless you live somewhere like Hoot Owl, Georgia (pop4), there are plenty of deals to go around. Do clients get the first opportunity? Does he take 1 per month? Whatever the method, make sure you are comfortable working under those guidelines.

Can you explain my real estate investing goals to me?

Obviously, you know the answer to this question. The important part is that your agent be able to reiterate your goals to you. If he doesn’t understand what you are trying to accomplish, the relationship is going to work poorly. The goals should include how many properties you want to buy in a given time frame, purchase and sale price ranges, and a degree of difficulty for the rehab.

Your agent can be someone who helps you build your fortune or someone who wipes out your profit before you even start. By screening agents with these 3 questions, you can try to eliminate people from the latter group.