Foreclosure Deals Coach Podcast

4 Steps to getting started in Real Estate Investing

May 04, 2023 Donny Coram Season 14 Episode 29
Foreclosure Deals Coach Podcast
4 Steps to getting started in Real Estate Investing
Show Notes Transcript

Welcome to the Foreclosure Deals Coach Podcast, hosted by Donny Coram. In this episode, we'll be discussing four different real estate investing strategies that can help you get started in the industry.

First, we'll cover "House Hacking," a method that involves purchasing a property and living in one unit while renting out the others. This strategy can generate rental income and reduce your living expenses.

Next, we'll explore "Wholesaling," which involves finding discounted properties and selling them to investors for a profit. This can be a quick way to get started in real estate investing without needing a lot of capital or credit.

We'll also discuss "Real Estate Investment Trusts (REITs)," which are companies that own and operate income-producing real estate. Investing in a REIT can provide the benefits of diversification and allow you to invest in real estate without owning any physical property.

Finally, we'll delve into "Foreclosure Flipping," a strategy that involves purchasing and renovating foreclosed properties for a profit. While this can be a fast way to make money in real estate, it's important to understand the local market and foreclosure process to minimize risk.

Join us for this informative episode of the Foreclosure Deals Coach Podcast and learn how these real estate investing strategies can help you achieve your financial goals.

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Welcome to the Foreclosure Deals Coach Podcast. The real estate market is shifting. The time is now. The Foreclosure Deals Coach Podcast is your home for the mindset, tactics and tools needed to break through your limiting beliefs and find freedom by investing in foreclosure deals. Don't buy a house, buy a deal.

You need to get into this right now.

And now your host, the Foreclosure Deals coach, Donny Corum. Hello, hello, hello and welcome back to the Foreclosure Deals Coach Podcast. Thank you. Thank you. I am your host. Donnie Corrum and my mission each and every week is to educate you about building income and wealth with foreclosure investing.

Please don't forget to follow, like, subscribe to this YouTube channel or wherever you consume your content. On today's show, we're gonna talk about the four steps to getting started in real estate investing here in 2023. But as always, let's kick this off with our typical. Mindset pitch of the days. Let's bring it up today.

A little mindset, thought process. We've got Robert Kiosaki, the great real estate investor who says Real estate investing, even on a small scale, remains a tried and true means of buildings and individuals cash flow. And wealth. Now, if you've read The Rich Dad Poor Dad book, and if you haven't read that book, let me tell you, go out and grab that book.

Read that immediately. Cause I wanna take you on a flashback here. Okay. So my story about this is understanding as I was working in the IT world. Okay? So I'm a software tech first local, local software outfit. I've just had my first young daughter, Izzy, she's now 19 years old. Okay? So 19 years old. I'm working.

My day job and realizing that I wanted to get into real estate investing as so many other people as just like you tuning into this show, wanted to get going. So I picked up a copy of Rich Dad Poor Dad, and I learned in a very short time in that book how important. Real estate investing was, I knew I had to get started.

I just didn't know where and what the first steps were to getting going. Does that sound familiar? Are you dealing with that right now? Analysis paralysis on where to get going? Well, what I did is I headed out and I actually got a, um, a hadn't started doing real. State investment conferences and attending as many different events as I could.

So I figured I needed to meet people to really get started to really get going in this industry. Well, at one real estate investment conference, I met what I considered at a time to be a guru. The guy's name was Michael, Jake. Now Mike, Jake wasn't even really a coach at that point. He was just specializing in doing real estate investing at a very high scale.

So I'm following with him. I'm talking with him after the thing, and I explain, Hey, I really want to get started. He says, you gotta keep it simple. You gotta focus on one. Aspect of the real estate industry. In his case. And in mine, the focus was on flipping. Although he did a ton of subject two deals at the moment.

He was looking to build capital through flipping and build wealth through doing subject two passive investment deals. So you fast forward from that point, and the takeaway here is your mindset needs to start with. Even if you get started on a very small scale, anything you can do to get going in this industry is critical because it's a tried and true means to get there.

In my case, I'm gonna teach you on this episode the four steps that'll help you to get rich in real estate investing in 2023, but you've got to do even a small scale, a small amount to really. Amplify this as all it's gonna take is one step. So I want you to listen to these four steps I'm gonna hit you with on the show today on getting started in real estate investing, getting rich in real estate, investing in 2023.

And then I want you to pick at least doing one step from one of these that fits best with you, that fits your lifestyle, that gets you really going on that Is that fair? Can you guys pick one of these four methods today and get going at real estate investing? I know you can. Let's jump right in. We're gonna talk about it right here now.

Okay. Number one is house hacking. Now, you've probably heard this term quite a bit, and the idea on this tactic of house hackings. Remember on this show we discuss mindset first, then we discuss tactics, things you can take action on right now, and then I give you a couple of tools that you can use to do it.

So step one, house hacking. What is that? Well, the idea behind house hacking is purchasing a property and living in one unit or one bedroom while you're renting out the others. Now, this is an excellent way to get started in real estate investing because it allows you to generate income while reducing your living expenses.

Give that some thought. Okay, you, you're trying to make an income here. You've got your day job. At the time, I was a software engineer making maybe 50, $60,000 a year. Okay? It was enough to cover my bills, but by house hacking, you can add, let's call it, if you got a four bedroom house, okay? You're one of the four 10, you're not using three of those bedrooms.

You can put tenants in each of those bedrooms at a four to $500, maybe six, 700, depending on your market. Okay, where it is now, bringing in an extra 1200, 1400 $2,000 a month. In the case of three bedrooms, you can house hack. At 700 bucks a month, you can be making an extra two grand a month. Now this is gonna serve two purposes.

Number one, it's gonna get you used to being slightly uncomfortable with real estate investing. Okay. The idea behind this procedure is if this were easy, then everybody would be doing it. So why is this limited to a certain subset of people who do this? Well, the answer to that is they don't want to be uncomfortable guys, and I gotta tell you.

The key to house hacking. What's neat about this, if you can buy a duplex or a fourplex, et cetera, this will be going on for years. That's a hard market to break into. You need more money down. They are harder to find at my market. They may not speak for your market. I tell people to start with single family homes.

In general, cuz they're easier to finance and you get into a deal faster. But with house hacking, you're learning how to produce an income through real estate investing, which is ultimately what I offer on my course when I coach people. I'm coaching you through your first flip with a guaranteed return on investment, a guaranteed income at the end of that deal of $25,000 or more.

Or I will work with you until we obtain that objective. Well, house hacking is gonna start putting money in your pocket in the form of monthly rental income on day one that you get over the idea of putting a roommate in your primary residence if that's where you are in life, and that's how you need to get started.

Just this one small thing is gonna catapult your entire real estate investing career. All right, let's move on to number. Two. So the second way you can get started on a small scale in real estate investing is wholesaling. Wholesaling. Now is the process of finding discounted properties and then selling them to investors at a profit.

This can be a great way to get started because it doesn't require a ton of capital and your credit doesn't matter in wholesaling. Why don't I teach wholesaling? Well, because wholesaling is the small money side of real estate investing. If it's where you are and you've gotta take small action or start small to get going, I approve of it.

A lot of my students get in without the initial capital to get going to do their first deal, so we turn to wholesale as a way to doing it. I don't teach whole selling directly, but it's not really rocket science. You've gotta buy low or you get a property under your contract for a low amount and assign it.

In my coaching product, I'm actually a wholesaler in a lot of ways, so it's not that I don't approve of wholesaling. I'm just doing what I call structured wholesaling. I am tailoring the flip that you do as a first time flipper to your specific experience area and skillset. Okay, so the deals I'm wholesaling to you, I do add a little markup.

This is how I monetize the coaching one. There's an upfront fee to get into coaching because if you're not willing to make an investment, then you're probably not gonna make it. And there's a bunch of free wholesaling courses out there, a bunch of free information. Why are so few people actually succeeding with that free information?

Well, because the information's worth what you paid for it. Okay? So if you really wanna transition, that whole selling's a great way to start. But if you want to get rich with real estate investing, keep in mind this is not just about making an income, which Wholeselling can do for you, but rather building wealth in real estate over the long haul.

One way is to house hack number two is to wholesale. This will ditch you the. Income that you need to actually make the big money, which is where we get to flipping. We're gonna talk about that as part of these four steps moving forward. We've got real estate investment trust. This is number three. Okay? A real estate investment trust, or REIT for short is a company that owns and operates income producing real estate.

Basically a small hedge fund so you can join. Into a real estate re. Now, this is great because I offer a REIT to local private investors here in town where I invest their capital into real estate for my students, for deals that I buy myself. See, there are people out there who have money but don't have the time or desire to get their hands dirty in a sense by their wholesaling.

Or flipping so you can invest capital. I've seen REITs out there as low as $5,000 where you can put money into real estate investing. This is a small thing on the scale of real estate investing, but it can take you from a state of inaction to a state of action. So you wanna look up REITs out there and if you're in a market or you, you wanna invest in Colorado Springs real estate where my rate is set up, reach out to me.

This is a way to take money that's currently making in your mutual fund. Four to 6% and quickly turn it into a seven to 9% return or even more. There are REITs out there paying drastically more. But again, remember risk versus reward. Okay? This provides a benefit of diversification in real estate because REITs typically invest in a variety of properties and you're getting a return on investment.

On the total return of the rate, generally, again, what I'm offering is somewhere between seven and 9%, but there are rates out there in all ranges. By taking this action, you again are getting used to the idea of receiving an income from real estate investing. We're trying to change your idea and get you from a state of inaction.

Thinking about doing real estate, which let's face it, a lot of you have been thinking about it for a very long time to actually taking action to doing something with the information that you have. Number three is REITs, and you could start investing in a REIT right away with a small amount of capital while you were building your real estate knowledge and capital to do the big money, which is flipping, which of course, Brings us to my fourth and final, how to get started and get rich in real estate investing, which of course, from the foreclosure deals coach is foreclosure flipping.

Foreclosure flipping is evolving the process of finding and purchasing properties that are in the process of foreclosure or have already been foreclosed on, and then renovating and selling them for a profit with my coach. Product, excuse me, you're going to make a minimum profit on your flip of $25,000.

Now, if you're trying to get rich in real estate investing, it is just a math equation. How many houses do you need to flip in your career to achieve? Your financial objective. Listen, it's really a question of what do you want? And if you can't clearly define what it is you want, it's very difficult to get it.

If you don't know what steps to take to get started, it's gonna be very difficult to achieve your financial objective. So by getting into coaching, you can skip these four steps, or the time it takes to get through these four steps and start investing in a foreclosure flip. Today with my coaching, you're going to get the process of finding the deal cause I'm gonna work with you to find it.

We're gonna analyze that deal together. I'm gonna help you to fund that deal using my network of private and hard muddy lenders. We're gonna flip that deal using my vetted contractor list and then fix it. Excuse me. Then we're gonna flip that deal at a minimum profit of 25 grand. This is a turnkey coaching product, not the idea of mentorship.

Or training that is so prevalent out there in the industry, but rather actually doing deals live with people who want to achieve the success of real estate investing by doing it. Okay, and, and I really want that to be the takeaway. You're not here to get theory. You're not hoping for more market knowledge, okay?

You probably have everything you need to actually do a deal. What you're lacking in most people's case is the coaching, the handholding, the ability to really take you from zero to actually getting a deal done. So I'm gonna give you an example of that cuz every week we do a deal analysis. In Privy the software that I recommend for people just like you to get started in this.

And then once you've got privy or when you're ready to go, you wanna sign up for a free coaching call? Take my assessment, let me show you and and see really. If coaching is the right fit for you. But here's an example of somebody who it was right for. So these are clients of mine, Stace and Courtney, and I'm so excited.

Cause you know, you kind of get these things outta sequence when you guys see this video. You know, life has happened. We recorded these a little in advance. Right. But while we were on the way to recording this show, I was working with Stacy and Courtney for their first deal, which is going under contract.

Two day. Okay, now think about that. Where, where would you be right now if you knew you could get a deal done right now? How would you feel about that possibility? Well, Courtney of living proof, but let's take a quick look at this deal. I'm gonna show it to you in Privy. So we're gonna do a quick deal analysis on the deal that this client I helped find, I helped fund, and now we're gonna profit.

Well past the guarantee that I offer a $25,000. But you know, your mileage may vary, but the point is they got involved. They took that first step. So the property is on Sanderson. Let's just put this in here. I'm gonna share this out so you guys can see it. Here we go.

Got it. All right. Here we are. So this is the after. Okay. And I really gotta hand it to Sta. Sta says A, I had no idea. And he mentioned he was pretty handy. Okay. But there's a lot of guys out there who say they're pretty handy. This, the work on this property went way past pretty handy. He did a wonderful job.

States did a lot of the work himself, which I do not recommend. But if you've got the skillset, certainly you can increase your overall profit margin by doing some, if not a lot of the work yourself. It does slow you down a bit. Right. But look at how gorgeous this property came out. Let's talk numbers here a little bit.

On the Sanderson property, they, these guys picked up this home for $285,000. Got it financed with one of my local private lenders. Okay, so I helped them with the financing. They put way less down than they were gonna have to put as a first time home buyer. First time flipper, excuse me, with their first investment property, so less money out of pocket.

The remodel took about 65, $70,000. Okay, so we're gonna say 65 grand. Of remodel and let's go. Let's worst case scenarios. Okay, we're gonna say $70,000. We haven't got the final tally. Plus we were at 2 85 when we started. So 2 85 plus 70 is 3 35. That their total investment into this property is before the cost of funds.

Okay? People are asking, how am I gonna make a profit of 25 grand? Well, after you buy the property, we add the remodeling cost, and then we sell it. That's where your profit comes from, gross. Purchase price minus rehab, minus purchase price, minus cost of transactions, real estate, commissions, et cetera. Okay, so we don't know the exact final number, but what we care about is that it's more than $25,000.

In this case, we're listed the contract we're going under. Look at this. Purchase price four 40. We got a full price offer on this property minus some closing cost concessions of 5,000, so 4 35. Remember that we're into this property, okay? For 3 55. 4 35 minus 3 55 is wait for it. $80,000 gross. Now we are gonna have some costs of funds, we're gonna have some commissions and et cetera, but my clients on this deal are gonna walk out with a $60,000 or more paycheck for doing their first deal.

Okay? So are you struggling to get through your first deal? You're not alone. Don't feel bad about that, but understand that by getting coaching, I can take you from that analysis paralysis that you are to actually finding a deal. That's where a lot of coaching products fall short. Okay. Is I'm gonna work with you to find the actual deal that you're going to do.

Help you to analyze the deal using privy other resources. I'm going to help you fund the deal. We're gonna fix the deal like these guys did together, and then we're gonna flip the deal outta profit. You wanna get started? Sign up for a free coaching assessment. Call right now. Let's determine if this is the right fit for you because being honest with you, coaching is not for everybody.

Okay. If you're not in the right mental state, the wrong financial state to do this, I'm gonna tell you that as an honest coach, that this may not be the right fit, and we'll discuss what the next logical step in your real estate journey is going to be. But guys, anybody who really wants to do this, anybody who wants to change their lives through real estate investing, Can actually do this.

The key is taking action. I am so proud of Courtney and STAs for doing so and actually doing their first deal where they're making real money, the kind of money people work for for an entire year. They're making in one deal because they took action and actually did the deal. Does this describe you? Do you want to be the next success story?

Schedule a coaching assessment call. Let's work together and get that deal done. So on this show we discuss mindset, then tactics, and then tools. We're gonna hop back into Privy, so I can show you if you're gonna start foreclosure investing. I'm gonna teach you how to find deals right here in your local market that are heading into foreclosure or are already foreclosed.

So let's hop back into privy. We're gonna stream share back over there. You can see here. That we can now do a search by location. We did a specific address search last time, so let's put in the location. I'm in El Paso County, Colorado area, so if you can go by county, you're gonna get a wider range of, of houses you can look at, right, as opposed to city or zip code.

So I try to search by county wherever I can to give me the most data. Now I wanna find, there's a quick filter here. You see this quick filter, it says four closures. Use that. You can also get pre foreclosures, people that are currently in the foreclosure process. What are you gonna do with that information?

You can reach out to them and negotiate a better deal because you know they're motivated if the property is already bank owned and we're starting to see a lot more of those and markets all across the country. You are now talking to the listing agent or working with your buyer's agent to negotiate a price and get that deal under contract.

Let's run the search. Find out what comes back in El Paso County and kind of as expected, there aren't a ton of foreclosures in this area, right? Because you're getting a lot of stuff that's definitely improved foreclosure. So it should have pulled that, but it didn't pull a ton of foreclosures at this moment.

Uh, there we go. Okay. It just didn't get the right search. Here we go. So these are houses that are either foreclosed on as in they're bank owned or in their process of foreclosure. It's always fun to look at the luxury properties. I am not recommending. Buying a luxury property as a foreclosure flip, at least not for your first one, but it's always fun to see.

Look at this, this house is a 1.8 million house that is either in foreclosure or is in the process of being foreclosed. A lot of the home has been, it's a short sale, meaning they owe more on the property than it's worth. So they are, they are motivated to sell this property and they wanna sell it quickly.

Well, what's it worth? They're asking 1.8 million, which is not a place we wanna start our searches, but it's fun, right? So the, the listing nearby 0.04 miles away. Okay, look at this property on Napoli Way 0.04 miles. So a well-placed rock could hit this property from where we're standing on the property we're looking at right now, it's a little bit smaller in square footage.

It's about the same age as our property, and sold in April. So just a few weeks ago. For one 2.25 million. So if we were to buy this property for 1.8 millions listed at and sell it for 2.25, that this is what it needs to look like to get there. Once again, I am not recommending doing a luxury property as your first slip.

What I'm saying is now we know the value of the home we're looking at, and we also know. The condition of the property needs to be in when we go to sell our property at a profit, and this case is a $400,000 spread between the asking price, 1.8 million and the 2.2 million sale price of the nearby comps.

Okay? This is not a great place to start as a starter, but this is definitely a deal and we found that on Privy using the foreclosure search engine. If you haven't done so already, you gotta sign up for Privy. Please use my affiliate link, bit Lee slash FDC privy. I really would appreciate that. But you need this tool to really get started to find deals right there in your local market.

They are there. You just gotta use them to find it and then analyze those deals with this code right here. I'd love to have you sign up as an affiliate and help you to get started finding deals right there in your market. Okay, let's head back here. So we have discussed. Everything we gotta discuss today, we've discussed getting in your mindset right, the small action that you need to take to get started in real estate.

Investing in the four best ways to get rich in real estate investing in 2023. Quick recap. You could be house hacking. Wholesaling. You could certainly invest in a reit, but most importantly, the quickest way to success and riches in real estate investing is unquestionably making the big money from buying properties under market and flipping them for the big bucks with a minimum profit of $25,000, which is what I offer in my coaching product.

Please take advantage of that. Sign up for a coaching assessment call. Let's do that. In synopsis here, guys, just wrapping this up. We listen, if you're gonna get going, you gotta take the small actions that lead to the large actions, okay? And I wanna be your coach. Everything that we discuss today will be found in the description below.

So please get in involved in the conversation. Join the Facebook group. I got a whole bunch of deal hunters, a couple of hundred of deal hunters. Now having real conversations in the Facebook group. I go live with a q and a each and every single week, and of course, tune in every week right here on the podcast for more insights in the foreclosure investment world.

With that, this is Donny Corum, your foreclosure deals coach. Thanking you guys so much. For tuning in each and every single week to the Foreclosure Deals Coach Podcast and reminding you once again, don't buy a house. Bye. A deal. Thank you for tuning in to the Foreclosure Deals Coach Podcast. If you like what you heard here today, remember, new episodes are uploaded weekly.

Subscribe wherever you listen to your podcast. Do you want more of the foreclosure deals? Coach, are you ready to learn the mindset, tactics, and tools required to be a. Successful real estate investor. If so, click the link below to schedule a one-on-one coaching. Call today with Donny Corrum, the Foreclosure Deals Coach to determine if coaching is right for you.

And remember, don't buy a house, buy a deal.