Going Big in 2012 With BiggerPockets
One of the best online places I found right away when I started out was BiggerPockets. So today in this special post, I want to brag on BP for a bit. And as we wind down 2011 with the Holidays in effect and a new resolution for a bright 2012, let this online site be of great value to you.
Before I talk about who BiggerPockets is, let me lay the foundation so it all kinduv makes sense.
In today’s real estate world, we live in interesting times. Yes we have the banks that will not fund our deals, Government that wants it all, and laws that make our job tough. We have an industry that 10 years ago it was much easier to hide your issues under a rug and get away with it. And today in many ways we are paying for and cleaning up all the crap that was being hidden in the closets and under the rugs by the slum of our great industry. Here is the funny thing…those same people are still around! And with social media, we live in glass houses, and all we need to do is look in the house and see what there doing. I simply love that! And call them out if need be! Social media has opened the door and allowed us to make valuable connections online. Valuable connections that are made on facebook, Twitter, Linkedin, Youtube and in today’s discussion, BiggerPockets.
Who are they??
Basically BiggerPockets is a gigantic social media site for real estate investors. Josh Dorkin founded BP in 2004, and has built the community based on FREE and valuable resources that can benefit anyone in the business. BP does have a PRO account you can upgrade to, but many have the free account that gives you a ton of value.
Stats about BP 
- Around 250,000 unique visitors per month
- 73,000 members have joined (and growing)
- 44,000 subscribers to the BP newsletter (and growing)
- Over 18,500 articles
- 343,000 forum posts and growing
- 10′s of millions of dollars have been made from the networking
Here is my mini tutorial on what to do
- Sign up
- Spend some time to fill out your entire profile
- Introduce yourself in the forum “new introductions” and make sure you read the rules of BP.
- Be honest and don’t B.S anyone. You will be found out before your next breath, I guarantee it.
- Explore the blog posts, members posts, forums, fileplace, and your dashboard. Get to know it by spending time in these areas.
- Start a conversation by asking a question, or commenting on a topic of discussion
- Upload your company and company profile with Logo and contact information
- Invite others in your niche and market to connect as colleagues.
- Start a blog
- Check out the BiggerPockets blog. There have been some great video interviews of other investors in the trenches. Great stuff!!
- Do not go through this whole process if your goal is to sell products or move a house. I promise you that will not fly.
REI BiggerPockets Summit!
This Is What It’s All About
Hey team, I found this video to be absolutely gripping and really struck a cord with me. Big thanks to my buddy Bill Walston who posted this on his blog and that is where I found this. Please tweet this out and share with others who may need some pick me up. And let me know your thoughts below.
Time And Money Trap
Just a quick thought for you from personal experiences.
Reality Check
Time is money
Deals take longer to close than you really want them to. Rehabs take longer and will have unexpected surprises that will affect holding time, and costs. Your private lender will want more than you expect and will take longer to deploy funds in escrow. Funding will have issues and will take a deal longer to close. And overall deals from most pie in the sky wholesalers are highly inflated on the values.
In addition, you have to sift through in my estimation 25 solid deals to find 1 good one. That means you must have a marketing plan that brings in those types of leads.
Ok, so I threw a large bucket of water on a small fire. I understand, but I want to prepare you for reality. The reason is if you add enough cushion to almost all of your estimations, you should be fine. Or at least have that mentality.
My advice to you is run your numbers conservatively. Look for ways to NOT do a deal. And add more time and money to deals. If you do this, then you will always hit your numbers, eliminate discouragement, and move in a positive direction all the time because you are happy about your results.
In order to see positive results, let’s use the attitude of expect the best, but prepare for the worst. With that in mind, you will always feel a sense of accomplishment when you estimate an ARV of $200k, but you or your investor sell it for $210k.
To solve the time and money issue, let’s adhere to some of these numbers: And keep in mind that we are being safe, so anything better than your estimates are gravy to your bottom line just making you that much happier about things.
- For every 1 deal, you need 25 motivated seller leads
- Add 10% onto your rehab estimates
- Consider taking 10% off on the ARV or (eventual selling price)
- Add a couple of weeks onto any time of payout.
- Account for quiet costs and be liberal and real. (Holding costs, costs for private money, selling and buying costs) Prepare for the worst case scenario.
But you might say, “wait a minute, I am a wholesaler looking to just assign contracts, why do I need to know all these numbers?” Because you need to go into every deal as if you were going to close on that deal and flip it yourself. Then you will know to the exact amount what a deal is going to take to realize a profit. These are strategies I have learned from Marc Imhof‘s Wholesaling For Quick Cash quit a bit, and really encourage you to invest in his training and mentorship.
Know The Ratio’s
- How many leads does each marketing campaign bring in?
- How many leads does it take for 1 deal to happen?
- How much deals do I need to do per month? How much marketing and leads do I need to roughly generate to accomplish this task?
Looking forward to hearing from you and connecting! Please make sure you download your free guide to building a buyers list using social media at the top right.
~Matt
Cheap Houses, Hawaii Five-0 and Girls Soccer
Happy Halloween!
Hey Team, hope all is well and everyone is turning in a solid year! It’s been a while since our last blog post, but wanted to consolidate everything that I have been doing in this “all in one” post for ya’.
Here’s a quick peak into my world:
5 Day Sale and Buying Cheap Houses
We recently conducted an auction to sell that condo that we recently completed the rehab on. Without reading the “5 day sale” book listed below, I thought we did pretty well even though we sold the unit by listing it on the MLS. Here is the short, short version of our initial run with selling it by auctioning it. We marketed like crazy an open house where potential buyers bid on your property. After a long 2 days of showing the condo, we had our highest offer, but still not high enough to realize a profit. We then started calling people asking if they would like to advance the bid. We pushed the offer price up about $100k just from making those calls. That was the first “5 day sale” that I did, and if I were to do it again, there would be a much more aggressive marketing campaign. Ironically, the lady who made the highest had to back out.
However… we recently accepted a very strong offer and opened escrow with someone that I showed the condo to for $405k! 
I guess my theories are correct that the ones who buy are never the ones that you had in mind:) So why am I using the term “cheap houses”? Well, I had a great strategy meeting with my local real estate partner Mark Douglass and we were looking at Google key word terms. The keyword “cheap houses” gets an enormous amount of searches monthly. Check it out sometime! I love the Hawaii real estate market and my heart is here on Oahu, as we just sent out 1,000 mailers, and have a solid team coming together. If you or anyone you know is buying or selling in Hawaii, Memphis, or anywhere else let’s do a deal! Greg Harris and I can answer any question you may have. If you are a serious cash buyer or want to start wholesaling with us go to www.getcashcowdealstoday.com or email/call me. Lets talk! rosenhm@gmail.com (808)383-5714
I hear great things about this book, just haven’t read it as of this post. In my opinion, Marc Imhof’s Wholesaling For Quick Cash is the best wholesaling course out there and the REI WebTools software is awesome as well. Another amazing resource on lease options is Bill Walston who in my book is the authority figure on lease option assignments, master lease options and many other creative REI strategies. Check out what he has going on–>BillOnBusiness.Net
U6 Girls Soccer
My middle daughter Courtney is playing in the under 6 division on Ayso soccer. I’m the head coach and really fell in love with coaching soccer. Especially when you have your own child competing. Not to brag or be hyper competitive, but within 6 games we scored 68 goals and gave up 4!! With my daughter scoring 28 of them. Here is where it gets a little wierd…There is supposed to be a 5 point spread before the team dominating gets creative to show mercy on the other team in an effort to promote fun and a good experience. But let’s get real, we all want to clobber our opponent, and if our team was getting smashed I wouldn’t whine and cry about it, I would tell my girls to keep having fun and try to at least touch the ball:). There is more to the story, just ask me:) 
Here is a little clip of the traditional tunnel all the parents do for the kids. We are the pink team, and my daughter is #7.
Team Pinkalicious –>
Hawaii Five O
So my sister in law had an idea to submit my information to a casting agency for an extra role in Hawaii Five-0. As a avid fan, I thought sure, might as well give it a shot. But the more I thought about it, the more I thought how much I would actually love to be in the show. The day I arrived to the set, it was bustling with people and moving objects. Finally found the area where I am supposed to go. Within minutes I am taken to the set where I am sitting on the card table with Billy Baldwin and some others that are portraying former cops..bad cops. Then the director said “ok, get out of your chair go to the lunchroom”, hmmm…am I fired?! So after hours of twiddling my thumbs and eating cereal, they said I would be the driver in a night scene with Grace Park and Billy Ray Gallion who is playing Ray Mapes. It seemed that we did a number of takes with a few of them in a very fast driving scene. Cool thing was the director knew me by name and Grace Park and Billy Ray were like instant friends. Making jokes with them was classic, and having people like that know you by name was really cool. The next couple days we did a scene where we drop off Grace park (Kono) to her house in Manoa. That was a blast, and really got to know some of those people that make the show what it is. What I learned was how much people and equipment it takes to cut a 2 or 3 minute scene. I would love to do that again and even showcase some fighting or action next time. But at this point, I am just some dude driving the Escalade.
Flip This Condo! Rehab Finished
Hey Team! I know, its been a while. Especially with my 30 blog challenge. Quit honestly I got tied up in so many projects with this deal being on of them. In my previous post on Flip This Condo! I shared with you the pics and details. Well, the rehab is done and were ready to sell
Here are the basic facts:
- 2825 South King St. #3503 (Contessa Buidling)
- Built in 1971
- 2 Bedrooms/2 Baths
- 1,154 Square Feet
- Breathtaking views of Waikiki, Diamond Head, U.H. Manoa, Kaimuki.
- Pool
- Jacuzzi
- Sauna
- Covered parking
- Brand new washer/dryer, refrigerator, stove/oven, dishwasher
Here are some pics and video
If you go back to my original post pre rehab, you will see a large difference in the tile, countertops, carpet, bathrooms, paint.
**If you haven’t yet, I have a free download for you. It’s a report on how to crush it with buyers, sellers, and grow your business using social media. The strategies have helped me do the same. Go ahead, let me know what you think** (Top right, if you missed my annoying pop up when you login..hahaha)
Fox Business News Interview
Check out my dad in an interview today on Fox Business! I know he didn’t get to say as much as he wanted to, evidently the stock market was tanking right at this moment.
Let me know your thoughts…
For more information on being the bank, go to:
Hard Money Conference Highlites
Just a quick note for you from the McCarran Airport in Vegas before I come home… 
I’ve gotta say that every event we do continues to get better. The quality and participation of the attendees really makes the event, and for anyone who was there a big THANK YOU!! You guys rock! We are checking the schedule with others, but our next event looks to be in Florida again!! Pitbull Mortgage School
For me, I was really impressed with how my dad did and felt he was on. John Hornik the mayor of Marlboro New Jersey and our real estate attorney always seems to bring such expertise and in my opinion is the best speaker on the subject of real estate I have ever seen.
George Blackburne (his Linkedin site) from C-Loans was also an amazing speaker and really loved all he had to say!
My other highlite is my talk on social media for hard money lenders. I had many people come up to me after and say it was the best part of the event. And many that thought it was really good. And for sure going to get some consulting business from this…
Another highlite is going to the shooting range with my dad’s friend who is a hopeful olypian in skeet shooting. He had some serious 12 gauge shotguns and that was a blast!!! 105 degrees though with only hours to work with before my plane.
Pictures and video coming soon!
Video was done professionally this time, and that might be another 2 weeks before I post that.
P.S. Please signup for our free webinar on mobile video marketing. This is going to be a fantastic eye opener, and you will be shocked how much more money you are going to make and save!!! Signup here –>FREE TRAINING
What makes you different?
Going to keep this one real brief being that I am on my way to Vegas in the morning for the national hard money conference we are doing. Gotta keep up with my 30 day blogging challenge for my peeps.
Being Different
As real estate investors we need to remove ourselves from the rest of the pack. Everyone has the same “we buy houses” slogans, seems to be everyone has almost identical looking websites, social media profiles, and same copy with their direct mail.
I really believe that in order to be someone else you need to put that best foot forward to create the wow factor. Here are some ideas for you to think about that will make you professional but also (and I know this from experience) is most do not have these:
- Dynamic and unique Logo
- Motto or tagline
- Mission statement
- Professionally designed website
- Professionally designed facebook fan page
- Free giveaway for your buyers and sellers.
Passion + Talent
Passion + Talent = Spontaneous Combustion 
On a scale of 1-10 we are all 10′s in certain areas that others are not. It is our job to search out what makes us all 10′s so we can live that fruitful and fulfilled life.
Last night we went to Church for the Saturday night service, and the message was so good and practical I just had to share it. This has been on the top of my mind, and our Youth Pastor really knocked it out of the park.
We all want the best life has to offer, and many of us are spending the majority of our lives not pursuing what really brings us the most fulfillment and fruit (prosperity).
As an analogy he brought out an empty gasoline can and a lighter. And when we match our passion (fire) to our talents or gifts (gasoline), is when we see God really working on our lives and we see a massive explosion of life coming from those two matching up perfectly.
When you live your life with passion, doing those things you love to do, nothing will seem taxing or cumbersome. Like when we take our girls to the beach or pool. They love it so much, they could be there for hours without eating or anything.
If you are living your life within your passion, but NOT your talent you feel a sense of fulfillment, but you will NOT be fruitful.
If you live your life within your talent but it’s NOT your passion, you will be fruitful but NOT fulfilled.
But when you are doing that which is your talent and passion, then you will experience fulfillment and fruit in your life, and things will really start to take shape.
In my case, before I started my own business I was in corporate sales for Ricoh. I was talented in cold calling, setting appointments and closing, but because I don’t like working for someone else, that job was not my passion. I did well, but wasn’t happy.
On another example, when I coach wrestling I could go for hours completely entrenched in it, loving every minute of it.
Look at American Idol! You have people auditioning who love music and singing. But many are horrendous, and they need a swift kick out the door to wake them up! Now does that mean they cannot pursue music? Not at all..In fact they can serve in another capacity other than singing. They can manage, promote, or whatever.
What are your talents and passion?
How do we know what we are talented in and have passion for? Because for me, I have taken tests evaluating my personality but I already know or have pre conceived ideas what my answer should be.
The best way to find these things out Pastor TJ mentions is through experience. And by having transparent and real friends who will tell you the honest truth.
It seems as if there are people I talk to that cannot stop talking about doing real estate deals. They love what they do, and want the whole world to know. They “get it”. And as a result, they are prosperous and fulfilled. They are taking long summer vacations with their family, enjoying the fruits of their labor, and almost can’t wait to get back to work.
Then there are those that seem to never get it. Everything is a drag to them. The economy sucks, the deal fell through again, banks aren’t lending, its slow, they don’t have time or money, and they are considering something else. These are also the same people that never educate or apply what they learned through books, courses, or mentoring. Allot of that talk is simply bad attitude junk, but I think you need to take a look in the mirror and either re ignite that flame again, or move on in another arena in the REI world. Perhaps you are best being an agent, or an appraiser, broker. Maybe you can’t stand flipping houses, and you get nothing out of it. Look into a group of people or mentor you trust and get their feedback. Maybe you should focus on buy and hold, or lease options.
For the entire message you can listen here –>http://nhdh.org/
On another note, my wife and girls are going to the Big Island tomorrow morning @ 4:15am. Then I am leaving for Vegas Wedneseday morning. So yes I am already missing them! I am not a fan of Vegas, but it is a great place for conferences.
Love/Hate For Real Estate Gurus
If it was not for Carleton Sheets, most investors would not be who they are today. As much as that name has been thrown around, truth is Carleton Sheets is one of the original Godfather’s of teaching no money down investing. Many of us started by dating back to a Robert Allen, or Carleton Sheets infomercial. One of my faves was the midgets. Remember them? They were like twins or something and were flipping deals all over the place.
These real estate investing educators, a.k.a “gurus” have had a bad rap with many investors. Unfortunately it seems as if today anyone who teaches anything on real estate is automatically considered a guru that will spin you all the way until you have no money left. Many “know it all” investors seem to lurk in the forums with their guru antennas on high alert for a good old fashioned guru bashing.
In addition to that, you go to a seminar, or listen in on a webinar and what do your broke friends say? Did they tell you how to get rich quick? Was it some rich guy trying to sell you there stuff? hahahah ….I mean really, No they brought out some broke guy who taught us how to be broke for the rest of our lives!
I always seem to find something in every course, or ebook that I apply and make money with. Are there people out there that rehash a real estate course and have never done a deal themselves? Yes, of course.
Want to know real quick if someone is legit? Hear from people you respect (who actually do deals) are saying about them. Check out there social media profiles, and look into county records for deals they have done. I personally will buy just about anything if another respected investor/blogger recommends a book or course. Why wouldn’t I when I know there is something I can learn, apply and make money from it?
Here is the problem and why many have a hard time with education… 
The Problem
The Guru Trap
Here is how it works: 1.You see or hear an ad online, or somewhere with a very catchy phrase like “Learn how to make millions in real estate FREE Course” (or something like that). 2. You are intrigued because the sales page is speaking your language big time, so you click dowload free course. 3. Someone sends you the free mini course, and put you on a drip campaign. (nothing too wrong right?) 4. The email campaign being sent to you is based on if you bought anything or not. 5. The free course was just enough to get your mind thinking about the possibilites. 6. You decide to buy the course that all those emails were pitching you to do for maybe a few hundred dollars. (still not bad…)
But wait! There’s more!!
The trap is when you buy the course, they say that is not enough to really be successful. You need the Gold package, or the mentoring, or whatever. And they string you along always trying to monetize you! What happens is you never do a deal, and end up spending thousands of dollars on courses when you didn’t have to
I am not going to mention names as that is not really my style. But they are out there, and I ask that you please be very cautious in this arena.
Not all are created equal, trust me!
The Solution
- Do Deals Today With Cash Buyers By Drew Downs
- Wholesaling Quick Launch By Marc Imhof (Banner that says “Is wholesaling dead”)
- Flip This REO! (Ebook) By Steph Davis
- Larry Goins Bootcamp In a Box By Larry Goins and his team
- Fortune Builders Than Merrill, JD Esajian, Paul Esajian (These guys give out more free valuable content than anyone I know! Very professional and detailed program they have)
Here are a couple paperback books from Amazon I would get right away
Investing Now by Jim Ingersoll. For a book review I did, check this out–Jim Ingersoll’s Investing Now
Flip by Rick Villani and Clay Davis
Hope this helps if you feel like you have been thrown around in washer and dryer. Let me know in the comments your thoughts, questions, issues, etc…
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