HFHQ 32: How to Get Started in Real Estate with Mike Simmons

Mike Simmons, from Just Start Real Estate, joins us and helps us understand the best way (or at least his best way) to get started as a new real estate investor and house flipper.  He really breaks it down and provides step-by-step processes you can follow to get started today!

Have any questions for Mike or I? Just post them in the comments area below! And if you like what you hear, be sure to click here to subscribe in iTunes. And while you’re there, why not leave us a review and five-star rating?

Show Notes

In this episode we cover:

• Mike's background with real estate starting in 2002 and why it took him 6 years to take action.
• The things you need to do when you first start with real estate.  (Take MASSIVE ACTION)
  • Commit the time to getting out there and start networking at REIAs
    • Tips to be a good networker
      • Dress nicely when you attend events
      • Smile and be presentable
      • Take action!  It will make it easier to talk to people and have them talk to you
    • Be mindful of who you tell — keep away from the negative influences
    • If you do tell people, you don't need to listen to their opinion
    • Give yourself time to get to know people
    • Be uncomfortable! It means you are going in the right direction.
  • Find an agent to help you start generating leads
    • Its not necessary to get your real estate license
    • Interview realtors and find out what they are able to do for you.
    • They should send you qualified leads that you care about.
    • You have to give them good, specific information about what you're looking for
    • Mike's method for getting in touch with realtors
      • Went on realtor.com and looked for properties that fit the criteria
      • Find the realtors that show up on the type of houses that you are looking for
      • Interview the realtors until you find the best fit
    • Treat your realtor with respect
    • You don't need to get in to detail about your business — just about what you're looking for
  • Make a short list of good contractors
    • One method: put an ad on Craigslist (with criteria) and provide a “new” email
    • Walk through a property with them together and get quotes based on what you want to do
    • You learn about rehabbing from contractors
    • The bids will give you an idea of the cost for rehabbing houses
  • Make offers based on the listings your realtor has been sending you (which meet your criteria)
    • You need to educate your realtor on calculating After Repair Value (ARV)
    • Go in to the listings for comparables and see what the houses look like
    • One possible formula: ARV * 0.7 – rehab = Offer
    • There are a lot of methods for finding a proof of funds (POF)
  • Get your financing taken care of
    • This is where you take advantage of those networks you have been building
    • Before you have a house under contract, be sure you have been seeking out financing possibilities
    • Once the house is under contract finding financing should be your full time job
  • Focus on direct mail when you have made some progress with your business
• Things you don't need to do Day 1
  • You don't need to start off forming a corporation in the beginning
  • Business cards are not a priority
  • Logo and branding
  • Making t-shirts with your company name
  • Designing a website

Tweetable Quotes

Click a quote to tweet it!

• “The name of the game when you're starting out is MASSIVE ACTION.” ~ Mike Simmons
• “You're better off going 100 mph in the wrong direction than just sitting still doing nothing.” ~ Mike Simmons
• “People are attracted to action takers.” ~ Mike Simmons
• “If you are not putting yourself in uncomfortable situations, you are just not trying.” ~ Mike Simmons
• “Getting your realtor's license doesn't necessarily make you an expert in a lot of areas.” ~ Mike Simmons
• “Don't have a list of to do items that aren't going to make you money in this business.” ~ Justin Williams
• “The more detailed you are about the types of houses you want to buy, the less detailed you need to be in what you're going to do with the listings.” ~ Mike Simmons
• “There are a hundred ways to get started in this business.” ~ Mike Simmons
• “You can't wait until you have a deal under contract to figure everything out.” ~ Mike Simmons
• “This game isn't for the real greedy.  You need to be willing to share the wealth” ~ Mike Simmons
• “This is a team sport.” ~ Justin Williams
• “In this business there are a lot of singles, and very few home runs.” ~ Mike Simmons
• “Always be looking for capital” ~ Justin Williams
• “Its a great business, but there are a lot of ways you can screw it up.” ~ Mike Simmons

Transcript

Click here to Read and Download the Transcript for Episode 32

Links and Resources

• Just Start Real Estate website (http://www.juststartrealestate.com)
• JSRE Podcast (http://www.juststartrealestate.com/itunes)
• E-mail Mike Simmons at: [email protected]
• Realtor.com
• How to work with contractors (HFHQ Article by Mike Simmons)
• Working With Private Money Lenders to Get Your House Flipping Deals Funded!

Join the next webinar!

Our next house flipping webinar will be Thursday, March 27, 2014 at 12 noon (Pacific) / 3PM (Eastern). Click on this link below to sign up!

Learn how Justin runs his house flipping business, how to connect with other budding house flippers, and ask Justin ANY questions you have about real estate investing and house flipping!

houseflippinghq.com/webinar.

Leave us a Rating and Review!

If you’ve found any value or helpful information in the House Flipping HQ Podcast, we’d love to hear about it! Head on over to iTunes and leave us a rating (5 stars would be great!) and review so that others who are interested in starting a house flipping business can find us and get in on the good stuff. Click here to leave a review and rating If you have any questions or comments about this show or it’s contents, please post them in the comments area below and I’ll be happy to answer them!

Song Lyrics

by Mark Moran, Sung to the tune of Beautiful by Christina Aguillera

Everyday you make offers
And suddenly, an ARV
MLS seems forever
It never goes the way you feel

This is flipping and every single day
Properties go away
Frustration but if you don't give up
You will make a buck
And then you'll find a turn of luck

No matter where you steer
No matter what you hear
A deals around the corner you just have to persevere
No matter what you find
There is no peace of mind
When you get a contact to sign that contract and everything is fine

This is flipping and every single day
Properties go away
frustration but if you don't give up
You will make a buck
And then you'll find a turn of luck

Listen close to this podcast
Learn a lot.  All you got.
Read the blog and make some contacts
It's up to you.  HFHQ

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