Why I’m Not House Hacking (& the Strategy That Will Cover More of My Rent)

tax-changes

Don’t get me wrong. House hacking is an awesome strategy that works for a lot of people. But I’ve decided that it’s not best for me and my lifestyle.

View the full article: Why I’m Not House Hacking (& the Strategy That Will Cover More of My Rent) on The BiggerPockets Blog. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.

from The BiggerPockets Blog https://www.biggerpockets.com/renewsblog/why-im-not-house-hacking
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The 3 (Increasingly Expensive) Layers of Real Estate Coaching & Training Courses

real-estate-conference

Real estate gurus claim to be able to teach you to become filthy rich through real estate investing. Is this real? Can you really learn from these guys?

View the full article: The 3 (Increasingly Expensive) Layers of Real Estate Coaching & Training Courses on The BiggerPockets Blog. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.

from The BiggerPockets Blog https://www.biggerpockets.com/renewsblog/layers-of-real-estate-coaching
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4 Toxic Habits That Sabotage Even the Most Promising New Investors

buy-hold-mistakes

Over time, these four common habits will bring you down and hold you back. If you want to be a successful investor, avoid these at all costs!

View the full article: 4 Toxic Habits That Sabotage Even the Most Promising New Investors on The BiggerPockets Blog. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.

from The BiggerPockets Blog https://www.biggerpockets.com/renewsblog/2015/12/28/4-toxic-habits-sabotage-promising-investors/
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New video by FlippingJunkie on YouTube

Not Assigning Contracts & Making More: Flipping Junkie episode 89
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H L Homes: http://hlhomestx.com/

Kyle is a founder and managing partner at H L Homes, a Houston based real estate investment company, founded in 2011.

He and his partner, Eric, formed their LLC to start flipping houses as a side gig. In 2014, though, the business expanded into a larger business to grow it and make it official. When Kyle first quit his job, the situation became “how do I monetize this and start making money quickly?” He started heavy marketing and going to appointments, but their buyers list was growing from the start. His first move became to network with other investors throughout the Houston area to meet other wholesalers. He would ask for their biggest problem and be there to fill their issues. Buying houses from wholesalers that no other investors wanted became their niche area, and generated lots of revenue in their first year.

The tactics depend on the wholesaler or the other investor. Sometimes, they’re just looking for exposure. At that point, Kyle and his partner just look for a percentage of the fee. As long as the other investors are happy and continue sending deals to them, they want to make it as equitable as possible. There are also a few investors who are just looking to entirely wholesale the property, in which case Kyle and Eric take it on and become the assignees for the property.

What contracts in place do you have? Is it just trust built?

It depends on the individuals. When Kyle first started marketing deals to people, it was exclusively a trust thing. The majority of people are honest, that’s just how business works. If you’re helpful, you will get help in return. The few people who were either dishonest, or didn’t close the deals, ended up parting ways with Kyle.

A few years in, the title company gets invoiced for either a set amount or percentage depending on what got negotiated. If H L Homes took it, it would be a standard assignment. Because of the invoice to the title company, you know you’ll be paid at the closing. Definitely something to keep in mind. No title company will close a property without fulfilling the invoice. “Shout out to Allegiance Title Sugar Land!” We know the title company wouldn’t turn their backs on an invoice.

Why are you transitioning away from wholesaling?

There are several things that lead up to that transition.

H L Homes started taking feedback from their sellers. “Of course, we thought we were great,” Kyle said, “but how can we make it better?” What they found is that what a seller wants more than anything is to be respected and be told the truth, and to have as few inconveniences as possible.

Start off being honest with intentions when it comes to price, and if it doesn’t work then we can market to other investors with different buy criteria. There are other wholesalers saying they would close on a property, and then not come through. Kyle found that they were losing deals by being honest when others were closing by not being honest. Going on a private money raise and tweaking the buy model helped them to be able to buy fast to help the sellers.

Being able to take properties down to wholesale gives Kyle more time with the properties. Because of this, Kyle is able to access different buyers because of the time allowed to advertise the market to.

Listen for more in the episode!

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These Two Lethal Mistakes Cost Me $500k+ in the Past 4 Years

rehab-mistake

We all lose money. It’s not a bad thing as long as you can learn from those mistakes and never repeat them again. Here’s what I’ve learned from mine.

View the full article: These Two Lethal Mistakes Cost Me $500k+ in the Past 4 Years on The BiggerPockets Blog. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.

from The BiggerPockets Blog https://www.biggerpockets.com/renewsblog/costly-real-estate-mistakes
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Why Investing in Garages Is an Ideal Way to Create Passive Income

invest-garages

Looking for a great hands-off source of passive income? Learn why investing in garages is an effective way to supplement your monthly cash flow!

View the full article: Why Investing in Garages Is an Ideal Way to Create Passive Income on The BiggerPockets Blog. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.

from The BiggerPockets Blog https://www.biggerpockets.com/renewsblog/2015/09/03/invest-garages/
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The Surprisingly Simple “Secret” to Financial Freedom Most 9 to 5-ers Overlook

“I’m ready to get serious about financial freedom!” I used to be that guy—loudly proclaiming my intentions to build wealth and passive income, with the desire to invest in anything and everything that might grant me the freedom from a life of 9-5 drudgery. I was working 40-50 hours a week at a steady 9 to 5, […]

View the full article: The Surprisingly Simple “Secret” to Financial Freedom Most 9 to 5-ers Overlook on The BiggerPockets Blog. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.

from The BiggerPockets Blog https://www.biggerpockets.com/renewsblog/2015/10/02/simple-secret-financial-freedom/
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5 Tips for Those Looking to Make Their Summer Vacation a Real Estate Tax Write-Off

vacation-real-estate

Contrary to popular belief, just because I happen to work on my real estate during my trip does not automatically mean it’s a tax deductible trip.

View the full article: 5 Tips for Those Looking to Make Their Summer Vacation a Real Estate Tax Write-Off on The BiggerPockets Blog. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.

from The BiggerPockets Blog https://www.biggerpockets.com/renewsblog/2014/06/05/5-strategies-make-summer-vacation-real-estate-tax-write/
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How to Lose the Management Headaches & Invest More Passively in Real Estate

invest-more-passively

If you’re low on time or just tired of dealing with the nonsense that comes with investing in buy & hold real estate, how can you make things more passive?

View the full article: How to Lose the Management Headaches & Invest More Passively in Real Estate on The BiggerPockets Blog. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.

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