Frustrated Real Estate Investor

Why Are Your Real Estate Investment Offers Always Getting Rejected?

Despite carefully following the most commonly used rules of thumb in real estate investment, new investors eager to get their first deal under contract, nearly always find their offers immediately rejected. They frequently experience the following scenario play out: I follow all of the rules of thumb, make sure I’m conservative with my numbers, and end up with an offer that’s way below listing price….and this is the 10th one that has been rejected. or My MAO says that using the 70% rule, I should offer X which is less than half the listing price, and my realtor won’t even submit the offer.   So what do these frustrated investors end… Read More

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7 House Flipping Mistakes to Avoid Header

7 House Flipping Mistakes To Avoid When First Starting Out

There are several mistakes that I consistently see new (and even experienced) real estate investors make when first venturing into house flipping.  These mistakes are understandable when the excitement to get started conflicts with the knowledge required to execute a house flipping project quickly, cheaply, and profitably. In this article I list the seven major house flipping mistakes that new real estate investors are likely to make when first starting, and how to avoid them in the first place.   Mistake #1: Buying Too High When a new investor wants to start flipping, they turn to the first place they know to find properties: the market.  These are properties listed… Read More

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REIkit and Redfin

How to Import MLS Comps from Redfin into Real Estate Investment Software real estate investment software has powerful tools built in for performing thorough due diligence on real estate investment properties. This due diligence normally starts with the process of calculating after repair value (ARV) by first selecting appropriate comps, and then using the method that most appraisers use to value property: that of a sales comparison analysis. This post is only about the first part of the equation, and specifically on selecting the sources comps. Whereas the free version of the after repair value calculator suggests 5 comps from Zillow, and allows you to add additional properties to the analysis one by one, the premium version of the software, not… Read More

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The Math Behind the Real Estate ARV Calculator Explained

The one thing that is constant is that I am consistently improving the software in response to customer feedback, as well as a result of my own daily use of the tools. As a result of feedback from one of customers who is a HomeVestors franchisee and performs a high volume of ARV assessments, there are several new calculations that have been added to the ARV calculator. These calculations should help you reason much more effectively about the potential value of your real estate even more in line with appraisal best practices, especially when performing a sales comparison analysis and adjusting your comps in the tool. There are now 4… Read More

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What is 10dlc and what does it mean for real estate wholesale

What is 10DLC and What Does It Mean for Real Estate Wholesalers?

In the world of real estate wholesaling, communication with your prospects is the lifeblood of your business.  The ability to connect with prospects, negotiate deals, and respond to opportunities in real-time is paramount.  However, with the introduction of Application-to-Person 10-Digit Long Code (A2P 10DLC) Campaign Registration, the landscape of SMS messaging is undergoing a significant transformation reducing your ability to engage with your prospects using SMS. This comprehensive guide is designed to walk you through the complexities of 10DLC. From understanding what it is and why it’s happening to exploring the costs, registration process, and more, you’ll learn insights tailored to your unique needs and goals. Whether you’re a seasoned… Read More

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Real-Estate Investment Financing Strategies

6 Strategies for Financing, Refinancing, and Exiting Real Estate Investments

While I’ve been improving the financing section of the REIkit House Flipping Software, I’ve had some time to think about the pros and cons of a few of the different investment strategies that can be used to finance your real-estate fix and flip or buy and hold projects, and eventually get your money back to reinvest in your flipping business, or rental property investments as in the case of the BRRRR strategy. Coincidentally, I’ve recently also had the chance to get into a few debates on the subject. There must be something in the air this week… The following is the list of the most common financing strategies that I’ve been thinking about recently: Strategy… Read More

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How to calculate cash on cash and internal rate of return

Why Should Cash-on-Cash Analysis Only Be Used For the First Year of Rental Cash Flows?

The other day I was thinking about how we use Cash on Cash Return (CCR) to filter and compare potential rental property investments, and how that metric is only useful to understand the first year performance of a potential long-term buy-and-hold deal. This post explains the limitation of Cash on Cash Return (CCR) beyond the first year, and why you should use Internal Rate of Return (IRR) to analyze the long-term potential of your rental property investments instead.   Starting at the Beginning: What is ROI? ROI is the rate of return of your total investment.     Generally, ROI is used for short-term investments such as flips where you… Read More

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BRRRR Real Estate Investment Strategy

Real Estate Investment Strategies: Example BRRRR Analysis

In this video and post we are going to analyze a property that was advertised on BiggerPockets as a potential BRRRR real estate investment strategy candidate.   In order to perform the analysis, we will be going over: An Overview: What is BRRRR? The Potential Deal What is the 2% Rule? Gathering the Due Diligence Data Verify the After Repair Value (ARV) Identify the Rehab Costs Enter the Purchase, Sale, and Holding Costs Purchase Costs Sale Costs Operational Expenses (OpEx) Modeling BRRRR Financing: Buy, Rehab, Refinance Hard Money Purchase Loan for Purchase & Rehab FHA Conventional Refinance Rental Property Income Capital Expenditures (Reserves) Itemizing CapEx How Does CapEx Affect Your… Read More

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Rental Performance Proforma

18 Essential Metrics to a Complete Real Estate Investment Analysis

When it comes to analyzing the potential of an income producing property, most people focus on Cash on Cash return as the only measure of their real estate return on investment. However, to get a complete picture of the return of your real estate investments, there is an array of metrics that you should include as part of your rental property analysis. While initially overwhelming, in this post I’ll break down each metric, provide the formula to calculate it, and show you examples, using a real-life advertised deal. In addition, I’ll also go into how these figures and ratios relate to each other. The total picture you get from preparing… Read More

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Best House Flipping Software Header Image

How to Evaluate the Best Software for Real Estate Wholesaling and House Flipping

In this guide to choosing the best house flipping software, I aim to help you in your decision process by talking about the most important aspects necessary to scale your business, and then talk about the features of software that you might need in order to get there. There is actually significant overlap here between software for house flipping and real estate wholesaling, and for good reason: The hard work is on the front end, before you even offer on a property.   With this guidance, I want to truly help you make an educated purchase decision in the goal of making your business successful.   What is the best… Read More

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Real Estate Marketing to Empty Nesters

How to Dominate the Most Profitable Real Estate Segment That No One is Marketing to Right Now

If it’s not obvious yet, these are undoubtedly unprecedented times that we are living in. Times that will surely make people with a bias for action a lot of money. Unfortunately, I’m seeing a lot of real estate investors sitting on the sidelines and watching Netflix, instead of taking advantage of the opportunity right in front of them.  I hope that you can be one of the few who does, by Hustling From Home (TM). Now, before I continue, while I believe that it is a great time for you to take advantage of the additional motivations created by the Corona virus, I categorically do not condone or advocate using… Read More

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Real Estate Investor Marketing Plan

4 Types of Motivated Sellers That Real Estate Investors Need To Be Marketing to Right Now

The current state of affairs related to the Covid-19 pandemic continues to affect millions of homeowners and businesses. Very few people have been left unaffected by this pandemic, with many who had plans to sell their properties from before the virus spread, but can no longer do so. While the government is helping those in need who are having trouble making their mortgage payments, and preventing foreclosures, there’s now a lot of other people who don’t need government assistance, but still need your help. They were motivated to sell their properties before the virus, and now because of it, they are more than ever looking for your help, and a… Read More

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How to Automate Your Offer Emails to Motivated Sellers

The REI/kit email marketing automation platform is an incredibly powerful tool for real estate investors, because it offers hands-off lead welcoming, follow-up, and nurturing. It’s easy to get started, by simply linking your REI/kit website to a “Website Lead to Send Offer” email marketing campaign. By linking these two tools together, you’ll have created an automated funnel that will guide you and the motivated seller through a series of steps that are designed to make the offer process as smooth as possible. I created this video to show you exactly how the campaign and tasks automation tool works, and how you can use it to streamline your lead processes.  … Read More

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Real estate investors at a mastermind group

Mastermind Groups for Real Estate Investors (Why and How to Find Them)

What do thought leaders like Grant Cardone, Dean Graziosi, and Tony Robbins have in common? They take massive action. They know their self worth. They preach radical transparency.   Those are just some of the traits and mindsets that propel them to stratospheric success. Despite their success today, these business titans all grew up in difficult circumstances. Somewhere along their life journey, however, they met others who embodied who they wanted to become, and found mentors to keep them on track.  Then they paid it forward by creating and offering their own programs to teach, guide, and launch new generations of entrepreneurs.  Often in the real estate industry, we talk… Read More

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ChatGPT Monitor

What is ChatGPT and Why You Should You Care as a Real Estate Wholesaler?

You’ve probably been getting inundated with news about ChatGPT from all directions; I’ve certainly been talking about it often enough with REI/kit’s ChatGPT integration! It is because I believe so strongly in what it can help you accomplish, that today I want to step back and give you a taste of WHY you should care about this powerful tool, and how it can truly benefit your real estate wholesaling business, even if you don’t use it with REI/kit real estate wholesaling software (which of course you should).  ChatGPT is an extremely powerful tool created by OpenAI that understands and generates human-like text based on the input it receives. It’s like… Read More

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House Flip Construction Estimate

How Can I Get Contractors to Give Me a Rehab Estimate for a Potential Flip?

This question is often code for: I don’t know how to estimate rehab costs, so how can I get a contractor to help me perform my due diligence on a property by coming up with a Statement of Work (SOW) and estimating it so that I can put in an offer?   The Set Up You have decided to jump into flipping because that’s how you build up your war chest to start using the BiggerPockets BRRRR strategy. You have no construction estimation experience, but you have just found your first distressed property on the MLS, through a property wholesaler, or just driving for dollars, and are dying to get… Read More

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