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KJCE 1370AM>Audio on Demand>>Real Estate Investor Power Hour Podcast 06/12/2014

Real Estate Investor Power Hour Podcast 06/12/2014

Jun 13, 2014|

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It's time for the real estate investor power hour when Danny Weber. If you -- deal turns your revenue producer Danny has completed over 400 real estate transactions in the years he is a licensed real estate and mortgage broker. My -- originate or an insurance -- and access to join the conversation by calling Danny now mean 51239. Miles thirteen seventy. Now here's Danny. Hey welcome everybody to their real estate investor power -- -- -- -- who's -- whoever -- -- guys in studio today Jack -- hey everybody -- you're a year like grab him -- year microphone and you're watching -- -- yourself on the live streaming on this kind of broadcast out on FaceBook we've got to live streaming tonight. Through live streaming and limited. Christian Brando in there. And it's it's kind of coming he's giving you a bit delayed but it's work in so. I got tied up in that China broadcast that apple does that -- Castro honesty is the other day and was. Her name he's excited. It is a a good Thursday to be out and about we've got the World Cup going on. Is it this is finally gonna finals and -- just -- -- -- Brazil just beat Croatia three new ones per game OK I'm an amateur three games tomorrow to miss thing yeah. And I don't really have a World Cup team favorite. But I know that there's a bunch of beautiful women in Brazil so on that again. Dan then standouts in that the -- receivers New Jersey -- -- I still. How how. If you're on FaceBook go to my FaceBook page or go to Justin dot TV bored slash live streaming unlimited. And now you can watch the show and nine I see we're wearing if you did turn into the show. To really show understand us and UC has set a new world. Saints shirt on because -- in New Orleans Saints fan you know. A curtain because invited into China Italy as the -- say and I will leave us the -- found the -- -- jiffy tonight idea. I brought in -- just -- he's pretty confrontational -- so yeah happy we could not did not come on I evident in the corner ask him some good questions here. Com. First question what's your favorite -- and my favorite colors red aren't enough of that comment. Couple announcement show quick is always things over for after being my -- in in getting me in and out of life daily -- thanks Jack for showing up every week. Any pleasure. Kirk big big talk now about the legalities of rhapsody -- assignments. In all this other stuff and assumptions and one of the things in a Sauna last week is clarifying. Home what's what and what to call out to break I found you know that argument. Who will break it down force what do we call life is that I -- me I eased terms or change we. Yes that's just choose those so I'm I'm I'm purchasing how this moment. Jack -- he has an annoying -- with one of the three boxes and boxes they believe that I don't like no mom what though what we call that. OK so I gotta give little bit of background as I said last week I like to teach the story so. -- five years ago people sort of bringing -- these creative financing deals and they're calling on the subject to deal is subject wise and it wasn't some people shorten it to say sub two that I like to be cool and you have to use you know. Democrats held the sub two time. And the sort of bring him in their contract Republican Adam and I'm business litigation attorney by trade. And -- I did die hard core of -- the -- take no prisoners business litigation for many many years before asserted during transactional. Work and so when I look at the contract I was look at the the things it could go wrong. Puts a judge can say about this what's a jury of blue haired ladies gonna say about this and I sort of seeing a bunch reflects immediately and I said you know what if you do business like this -- -- -- And so I'm trying to train on my clients to do with the right way I don't know what realistic who rule on what planet sort of using the word subject to the first subject to. Minute to describe what truly an assumption contract. That apparently that phrase cut onto this cooler heads and it's easy to say. But it does not describe exactly -- doing and it's also very misleading to the to them to the -- that combines property from. Someone a one man mission to you train the world team to call this thing what it actually is legally and that's an assumption. Basically with the means is you you knock on the door of this guy who's behind his payments for six months. He's got to foreclosure notice it doesn't have to be a guy could be -- most likely be a martian yeah you anybody -- yeah -- And can be a dog you know anybody they announced that -- real estate. Andy knock on the door you had your white Knight and the answer to your prayers and -- pay your past due amounts you do you behind six months and keep this for -- -- from your credit record. And you know you get the hugs and kisses and people say yeah we've been praying for you for months and you're here thank god and and you go OK and sign these documents you know they signed the documents and you show the closing and one of the documents you have them sign it is this -- -- and -- -- -- the exact opposite of everything -- told -- -- -- living -- when -- -- -- -- -- -- -- -- -- -- -- -- and -- an -- that was created -- some -- -- on -- planet somewhere. And they -- -- that that quote unquote an attorney created it but nobody can tell me what attorney. Four with the law school with a bar number is or was phone number is so I don't believe this guy exists somebody that is -- check assumptions known and no known it McKinley used attracts absolutely that's when you should be using. Many US so these few -- bringing me these these contracts they have with this subject to a -- attached to it. And the subject to a Denham says exact opposite of everything you told his people in the living room and -- at the closing. The foreclosure auction is. Two days away and your handling of this document saints signed here. And it. The document says oh by the way I don't have to pay your monthly payments I'm not obligated to. I'll do -- if I feel like it and oh by the way in exchange for not taking over your payments you're gonna give me the title to your house okay fiscal fraud. And I've defended enough people and fraud claims and deceptive trade practices -- to know that that's gonna get you -- Now they can't reject it sounds. In that situation I have I have heard some gurus and -- spending a lot of money on gurus. They say look putting your contract -- if you skip a payment if you miss a pain near 31 days late on payment. That the house can mean beating back. -- And and in an effort to you overcoming any pinot. Problems and -- everybody runs and problems many investors may over leveraged themselves in and run into that problem. This is that. Day is that some -- I don't do that didn't quit the test that I use for myself and for my clients as -- -- mother signed this contract you're sending you love your mother Erica. Men and if you if you ask your mother has signed this contract and go for a bed. If I asked my mother to do something like this comment to make sure that my mother's protected because I'm gonna put her interest ahead of my own. Well and and and I understand that and so yeah so what I would what I would what I would think he is. I'm going into foreclosure. I have very little options because our procrastinate in the day that did all of this is going to happen so. I can sign this document in May be. It will not going to foreclosure and maybe sometimes in the future we'll get -- sold the right way. It's better than it's going into foreclosure for sure. So I am working on -- maybe this is going to be okay that's and it's in the client's right the way I am and it tear up front with the client with a I mean sure I'm an and I don't do assumptions in September I'm just thinking about this and Tom. Geez if if that's the choice I have is AM born into foreclosure are beat. Maybe this'll you know work. What do you but it. Let's get back to terminology you know what do we -- -- -- what what resumption of the color what is this is an assumption. So it is not even an assumption as an unnecessary Simien on point patriotism like. Well I would do not -- me well yeah I can argue that they just to say you're not assuming their loan through the bank. Not to the bank -- there's -- right at the rest of the assumption when you when you as a mortgage guy when you look at assumptions there's always a box on the till. That says is this almost known as soon learn our team and you always check that there's two boxes yes and then known yes with qualifying -- about a block yeah. And I'm familiar with all that and and so that raises a whole different issue but let me finish answering your first question and then we talk about whether you have to ask the bank to do this or not. So if you do an assumption the right way and the warranty deed then the seller signs and you're also been assigned their specific language in there that says. I'm transferring title to my house to you 400000. In exchange for you assuming the underlying note and that word assume is in the document so it is true assumption. And in addition you the buyer are gonna sign a deed of trust that says oh by the way if I do miss my payment to get back to Jack's point you can take the house back. Not if I'm feeling good that day I may transfer title back to you know. If I disappear a slap to the he'd be all right forget to make you pay you the seller can hire an attorney and take that house back here but the typical foreclosure proceedings I absolutely we have -- -- an aspect catches for closing wanting to know that second house I still -- -- -- had a foreclosure proceedings during the season. I wanna I mean get it that they can't -- but for everybody nobody likes -- he had and -- at the bottom line is the -- there's no recourse if you use the subject to a dent in the cellar has no recourse he just gave you my house I don't do -- and exchange is an issue in the generic when -- -- tract contract and then go into an -- -- that does seem gives both parties to best protection. Correct and it's on this because it's the very same thing you said this guy in his living room when you're talking him into giving your title to his house. Because what person in his right mind would give you 200000 dollar asset. With nothing in return and -- question yet. Od. OK you can have a house back -- I'm 31 days like this -- -- foreclosure -- Georges saint. You if I miss a payment I'm 31 days late. The property right now and cannot voluntarily that's right right isn't mommy you can have the property back it's yours if I'm 31 days late its shores could you put that in the. You can let me tell you can put that in a contract but not in the deed because in order for that property to revert back to the seller. Somebody's gonna sign -- deed in lieu of foreclosure and that doesn't happen automatically. Can it can never be done prior to end any -- at 31 days to a question you can you can sign it prior to that event and that that document in escrow with an escrow returning from a second treaty -- seizure cash or revise or you can say you know mr. seller. Meddling in my giving you a deed of trust that you can use to foreclose on that ominous sign a deed in -- for closure ahead of time. And dominant that it with this neutral third party mr. dean Castro whomever and -- fire miss a payment you can just call him and say -- and record in the -- church. -- -- -- -- what savvy investor do you know it's gonna do I mean generally they can't I do not -- -- -- an accurate or more I would do it just to close the deal per share. Because I'm I'm never let my Amazon and I and I don't deserve bounce. How I like it put any you know if you come close and it's a payment -- okay halftime. I think Palestinian front that he's gonna suit your somebody's -- your assumptions -- share that's assuming you know -- and that you I thought I'm actually I have so there's there's a bunch of us. A bunch of ways to write a contract I know in any -- LA. It Dan's got a contract class coming up with a much other stuff when when is it June 21 Saturday in ten to six. And Heidi sinopec class you send me an email -- -- men can S true that gmail.com. And man cast your gmail.com we got to minister commercial. So Lou what the other things -- on what tonight is how to structure you know when you're. Seller. When you look at the seller can be John Smith -- up with -- Asian buyer. Thumb a lot of times you know I even me -- you know Daniel wherever endorse signs. Come forward anywhere at all. Mom is just so I can do something with that contract if I want you to Barack media and DES TD that. The cut I did attractive and attract contractors assigned -- And not on data and do you have to have never been -- -- if it's signed away his CNN -- -- conscious says it's it doesn't say specifically that it's not and it did you always you always say and are signs to get in Syria to be safe yeah there. I anyone other you know that first section. Which are really good because I'm always are what this is put -- -- description right in the contract that say. I put a lock slot five initially lodge seven moon blocks twelve what that can -- in a contract return confidence. No that's considered a non material error and as long as both parties agreed that there was an error in the willing to change it back to can fix that these little what if I want to parties not -- -- and agreeable than they've got something -- him. Yahoo! -- -- that when partisans know you you just sold the wrong house than the other becomes the valid argument mr. men. What it would notes on the first few pages are big -- and issue a lot of mistakes on. And that did one biggest ones at the bottom of page one item now are you have four to fourteen contract. The latest greatest yet I can't yes for like last month yes. OK well -- -- -- quick side story and I'm competing and so -- now for house that they. When Allen looked at the address you know how they they've they've brought in a contract a solid competitors contract it was a 2011 contract. You know they've only got us as you know it is it's one of the country maybe put out even partially correct. I mean have that have that thing was flying cows like you know you have to take the military. Paradigm of paperwork and nothing's ever left -- is either you know and any or it's got something in it. They haven't been to -- and Castro's classic had a minute and they need to go they don't they need to I was in many classes have been used -- -- -- So we we wanna talk about that. Fisher in and you know DN -- in main cast your gmail.com yep and how many folks can you fit in the class of decent amount uniform my about a hundred yeah okay. And it's. With -- audience that we're gonna take a quick commercial break we got some really. From Austin music yeah. I didn't think athletes selected Miami -- You get -- right now. I mean. Welcome back to the real estate investor power hour with Danny Weber. If you have a question for Danny don't be shy Colin now at 51239. Out thirteen seventy. Hi everybody welcome back to serious investors aren't anywhere ever in. Get yourself foreign. Bono live stream those that talk thirteen 70 AM and then if you wanna watch. -- video of the radio show in the end I think everybody in this year's NFC south face for radio -- -- half -- I've got -- but -- -- -- -- -- if you if you wanna see as you can get a new Justin -- -- forward slash live streaming unlimited. -- courtesy. Christian brand their frustrations. Com. They -- part and have been doing a video streaming and company now I have I think they're out of buttress his office David office that's right now and I studio. I alienate and a big big green screen capabilities they can do any kind of crazy. And -- and -- shoots and commercials show me where they're gonna put me like like a game thrown size style. In Germany to a commercial where like I have my shirt off kind of have to make it no longer Jones complex kind of an accurate count how -- -- grade I got the bongos Dan -- where she needs -- kind of crisis is Jane -- San reminders. Creators of any commercials have some fun with the utilizes -- with his guys have. But let's get back to the the whole assumption. Things that we I mean no I love these things -- I do I I do you primaries many these as anybody in the stadium on thin. I can't get enough alone and end I've had some great success stories in some failures and everything in between. What are being you know let's close this subject -- and another hot subject right now which is new construction. What are what are some last thoughts you've got on assumptions. So before the -- you ask me about page one of the contract it and some typical players that are made so give your recent example two weeks ago the real today isn't. Called me how to keep on me on FaceBook or something like that said hey I hear you're the guy that does wraps us and yep. And done because like coming to bring your rap deal and want to draft the the closing documents and do the whole deal. And a circus in -- contract any center in the contract. And then it was written up like like a -- would be which is he checkbox for CEO on page one of the contract that says some financing. And you -- it's called the seller financing in -- And I called American said that Timmy -- what you're trying to accomplish don't tell me what form you using tell me what your goal is seen as well my buyer to take over the payments of the seller. Tressel that's called an assumption. And he goes yeah but it's all the same -- said no it's not. And so he sends me the contract there was not an assumption he sent it like a -- but -- eerie to me verbally he wants to do an assumption. So I had to call back and say OK you need to send me an amendment and check the right box because an item for BM -- over what would be the difference between a -- and assumptions. An assumption. Is literally where the buyer steps into the shoes of the seller. In takes over the existing note. A rap is where the buyers giving the seller an additional notes that there's two notes so there's a note and another wrapping their first note. And if so that's -- two and I'm gonna use that term that everybody out there had ashes of two was an assignment fee is an assignment. 72 with -- an extra mortgage is Iraq. No and rappers around and were you guys are calling the -- to you as an assumption. Then right let me tell the mistake that a lot of lawyers make him a lot of agents make. What they do is say they say won't take over the sellers payments and so what I'm gonna do is somebody gives you a note. Where the monthly payments at the same exact same dollar amount as what you're paying to the to the underlying lien holder thirteen -- way to do it. That's like going to Waco via China OK gonna go to way go go to Waco right draw a straight up by 35. You're going to be in Waco this series you get a wake of it. I got what I value and -- in Brazil India and Brazil. So Lewis and if you gonna do an assumption and then do an assumption that you don't need a -- if all you're trying to do is take over the underlying payments of the seller. That's called an assumption and there's a procedure to do it but the -- formal lots for it. You just have to to a box its check in when attendance to sign an image to show that in my class and gently first. -- okay all right so we got a little bit more knowledge and I don't seem to be Tunisia and all the time when -- and a close. I I'm trying to be in a class on -- -- and you know Lou. Quick. Segway and a class talking about a few different things we have slipped in and the stuff that I really like to do. So let's go to new construction guys to come out and look at if you lost today. Endowment just to check and I got guys that I know is bringing some delisting mean homes on lots. In the what are your thoughts turn on a construction of the simple math the new construction right now as you saudis whereas if you need a lot of bright horizon. You know keep your construction costs to you know. 809000 dollars a square foot maybe 110 -- You know there is that we're we're we're buying in -- 30350. Dollars a square foot. Ranked near -- renowned Palomar. Old -- that area. Bolden whereas you actually east Austin -- your EU NL central and east in essentially says the same price points. Had -- port actually got actually got some stuff working and 704 as well I imagine they're really hot area yeah. We Scott -- a lot there punitive so it is hoped that South Boston present for you saw essential east kind of like news out of town south of an okay. South and east of the molten south -- north south of him OK and hobby. I don't know quarter mile off -- 35 and even okay then that's where the San Antonio flip that house guys they're very big there they're all over in that area doing exactly what you're talking about. There's some other builder. He -- like thirty some odd houses over east Austin maybe same building you're here. I know Newcastle as though there could we do construction work for new cast of some of the demo work for them in their big over there mock Election Day and they don't try to -- if you finished have been have been -- The streaming website is Justin dot TV sport slash live streaming and limited. That's Justin dot TV Forsythe slash community we had -- -- apparently -- the -- and and nine asked about the site so apparently ages wants to watch the show he's got a page is not content with hanging out with this at happy hour -- -- -- -- -- and you got a little bit too much fun last night -- come in our seven fun but I believe that it had plans that you. Jump in on the whole whole new moon moves so what about you know that's how I mean I can't tell us about sleeping when you -- many new construction -- time. Yeah so out of client name's Cindy Harris she's throwing a listening hasten the if you are she found a deal in the east Austin just behind the baseball Philly -- baseball throughout this Caucasus -- Then dumb how she found is a whole another story very interest thinks she's a very very new investor. Secret is still under contract 450000. Dollars it's a vacant lot never been anything on there so she didn't even have to -- to your -- down. And -- the last minute her her investor partner pulled out so she called me and said hey I need any help to the closings two days away -- knock and extend. He's trying to figure out that the lots -- -- for 2000. I -- close and it's our call somebody's to see if anybody was -- -- and I actually drove over there myself because I was interest and and I said listen you've got two options because you've got a lot at such a good deal. I'm not sure it's worth building a house on that thing. If she'd gotten bid for construction and the united I was looking at the numbers in the in the hard money -- she was talking about and I was I was -- -- demeaned by the time you had all the math. You're only gonna make about fifty grand after a construction in the taxes and harmony. When he just sell a lot for its worth which is 250 and had a clean 100000. But she's new -- so she's open to ideas and and I introduced her to the banks until that actually do you construction loans. At about 6%. So you don't have to do hard money to do construction loan. So if I were -- in that case I would not build on that lot. So it's really a matter of cost benefit analysis you got to figure out what your building costs are. I gave her Dini is there's a potential. Contractor to do build and I think Danny was -- 125 or so -- has referred. But the generally -- lies on us. I know it you know if you ask voters to give me a price per square foot. That's like asking -- you know. How much is a car that Triad region saw it places so yeah basically just say hey you know. If you had a 125 dollars a square foot it is you know almost no chance you can't go to that house that. Yeah hard shirt or some large on perceived circus in. Yeah. So anyway so if you got a lot when you think about building you know reduce the math first judges renowned hire a contractor. That outrage disharmony costs. You find out you can number one the best bids in town have two -- -- contractors go out there give you -- bit. But I also think about flipping the land itself because if you get a good deal just resell a lot. LE NI IS I conversation with the guys today I said you know we can make. Fifteen or Tony Kaye on an assignment. And sixty or 71. Build. -- take the money Natalia milling out you know what what's your build time going to be six months six months this bus but interestingly interestingly enough. Everybody's scared of the city of Austin's permit processes and in right now it's two to four weeks for approval. Them and -- not -- no -- -- and I have you know we've come in contact with them just about all the time just because of the projects we are going. You you can actually a new home approval and into the junior you know -- inspector. I mean. If -- feel or you your ducks in or your papers -- in a week well I and that's the key if you get your ducks in a row and you know what you doing a lot of guys are you know. Step and out trying to be builders had in the city of Austin haven't had done a lot of work. They hit the brick -- -- and we don't have initially it is obviously there's tons of good and bad stories on the inspectors -- I've always found and to date. If I act like -- but ordered them they're going to be what will remain with the write me if I had you know coffee in. TV for CNN I'm like. What area -- he would be would that same time if I -- Darren you know just hey here's the stuff look at it scientists -- That he would he's an orange Taggart -- -- it was for the remedial work. I'm not -- if you're trying to get you know slide past something or slide something passed them then they get nasty -- no rain in and you know today. Am never -- -- -- today they're not a hard group they're just delete everything at forty calls a day or something like crazy -- -- call us that they have to go one a day. And I just disarm formats on the show up there -- running in the house you know what women here for -- -- -- is -- -- and I was checking out and then pass fail. If you feel pretty region typically always given me this is that you need to do to get fixed. Mean -- -- especially trading well that's a lot nicer than they used to be -- City inspectors in the US -- some blog going around that was really you know written on them yet thinking I mean I've always had decent experience is with them but so. I'm not -- construction I'm actually looking for I mean I'm an -- on May be looking for some funding on some of these projects. So he got anybody radio land that once says there are you proud are fine. In the meaning that if I do I talk to. You the president of ABC bank today and he said Dan thank you plug in to the investor community. Tellem I'm sitting on hundreds of millions of dollars that I'm that I want to land. And he's taken -- -- lunch next Monday to give him plugged in so around the the mean there's there's banks out there. That because of the the Great Recession when they stopped lending these assets have just been building up building up building up. And because the legislation Dodd-Frank ad nauseam and all the other federal laws. Have made is so hard for qualified buyers even qualified partially alone. Banks are sitting on mountains. Of cash and that and what to do it so when they start calling me and I've never met this guy he called me. And said -- I want to talk to you tell your people I've got hundreds of millions of dollars waiting for the right project. So yeah the money's there. Let's leave here and in any you know Marty talk to on the aging. And -- you know I mean do you Demi split to have fun these projects should actually have. You know good -- marble falls on one of the normally carry on the lot. I get to a three in east Austin at a party you know very kind of outfit today with with time Robert. And down all of them quite viable project as she's intended paper make sure the numbers work and in you know that you know I've got a couple guys from the real estate investor groups along you know and there -- some funds that Dayton. I mean I've got funds are coming in but I you know it's. Which we are -- Jerry plunged from six different people are in -- partial partial funding myself for doing just Steele thing out now with one or two you know. Institutions as well as a tell all my people you're not really in the real -- business here in the relationship pistons. And the people that know that make more money than the people that are in it for a one off deal make as much money as you can from the sky at this time run. So I I recommend that you get with one or two lenders that you know whether you're happier with the you know they're kids they know your family. Andy. Build a relationship but that guy because if you're have a deal that's that's questionable -- great. He's gonna give you the benefit of the doubt because he's done five or ten or twenty for deals aren't so it's all about relationship. I really could forget who they don't have actually that -- Hundred pursue American and I remember senator and a present track record with every hard yeah I've ever used yet I don't ever have found him at new construction I don't you know I don't know on any construction. They tape if if you're out there an investor worry you are flipping -- boundaries had one bad experience with the rehab her flipper to. -- new constructions much easier much more fine -- -- so -- -- -- -- -- smell is better each day one you've got Koresh would smell as vs. You know cat cat hearing in in feces and you know still carpeting craziness. You have more time involved more time. Equals more risks so there's you know there's there's been so tell us pretty good Indian next rehab -- so for the people that didn't know and can take advantage of your last we have class. I'll get a quick plug. So if you're a first time investor or even a new investor and you're thinking about -- a big rehab project. You -- going to these -- -- classes through the either give you the even documents in the teaching the concepts in the theories. Does not educate you for the process and did you ever about two months ago did a hands on classroom invited a bunch of us out. And to watch me do this rehab. You can get your hands dirty I'll teach you how to how to cut tile I'll teach how to put mud on the title. I'll -- had a break out windows and replace windows I'll show you where my give my -- how much they cost. That was way more valuable than any real -- you -- class that you could go -- so when's your next classes where inquiring minds. Want to know well I've actually got to come home working immediately GC work for. So investors on a project off of Riverside and it's probably gonna start. Mom. Debating on firming in most the stuff for going to be doing is same -- permits that they've got to close the deal so. There she -- to close the deal Friday remind me mom if everything goes -- have permits. Our Friday the following Monday so within the next couple weeks I think coming into another Saturday class death today you know it did it -- -- for plugging -- it I think we have fifteen people 1518. The other thing that I learned aside from learning how to cut tile wood stain you let me do an added you have to sign a liability release or anything. Mitt and I got to have to learn and put mud on the tile laid on the ground straight after a couple of tries. Is up when I learn more importantly is that I don't wanna do this attraction because I'm too much worried you know what yeah in Danny taught taught us that if -- gonna -- your rehab you gotta be there every -- -- -- sudden you're talking about putting security cameras in to see -- to make it actually that -- actually -- cameras have we -- simply safe. Yeah we have that portable alarm system on our indirect jobs -- that day job and I don't own and operate for companies and I don't have time to drugs to jobs on every -- to make sure somebody else is doing their job. So I like the assignment option I'd like a lot of other ways to make money rather than -- rehab unless I have somebody like -- that I trust. Who is gonna be the job -- everything he is going to be a that the guys forming. In all I have to do is -- hill and any instead of everybody else. -- that thankfully it hasn't happened -- -- -- happy guy that we acted out we've gotten in trouble on a job site is designing in trouble but we're doing our contracting job you know decent -- rehab. When a house in round rock right now and as the biggest trouble we've -- and I'm talking you know from a 100000 are dobbs you know 5000 jobs. Who went up when my guys leaving the lights on and the lights on a couple of times they left in the evening and at the ceiling fan on whom. Not a major mistake but more or less just take cash I started -- you know turn this stuff officer here in and that the client was he really angry spy case. You burn in my lights and electricity from turning things off that's -- -- we've been I think so well let's not much. Nobody still kind of like Romanian is that just like teenage stuff 98 -- -- themselves. The other the other little things I learned the can be huge was some how to do an estimate of repairs just by doing your quick walk clear. And on the inside and the outside -- Dini said well this is electrical panel that if you if you see this on your house you know immediately need a new. Should know better Pacific piano the only federal prison and -- -- heard of federal and had a few thousand to -- budget right away. -- we got to take a commercial break we'll be right back match thanks much for pretty -- and we got some very -- go back Thursday music. That's gonna take you send this. Oh yeah we get -- going on. We'll be right back. Welcome back to the real estate investor power hour with Danny Weber. If you have a question for Danny don't -- -- -- now at 51239. Out thirteen seventy. Hi everybody welcome back this year we've got a lesson fifteen minutes for the -- Q continuing. We retire my rehab -- and either hiring GC years there has been on the job site every day. I know personally. You know. Probably ten folks have been burnt on their first three have -- project. It is not because there they weren't Smart it was because they trusted somebody should have I got a buddy right now my image any names because he's he kicked me. But -- he wanted to DC his own his own rehab project on his personal home got a loan from the bank and all the money basically upfront. And dumb he's Tony he's doing here -- here. Mean in earnings at 35 and I pain became our front wheel route using it for now this surface on those it was a huge home base and it really. The money was it bad for the job I can't begin to mall upfront and -- -- -- -- of walked out of a African John yes no contract. What happens a lot that this gives no contract with the guys is -- -- -- -- -- -- I mean I think all this stuff this is kind of a process because again again when you first start out eat you don't know a lot it's really good to be on the jobs side a lot and to be doing things as she developed the team. Like right now and Cheney used you've got a team you don't have to be on the job site because. You've got your -- they know what they're doing and you've you've worked out with the actress grace takes -- -- -- and so in the beginning you probably do you have to put more time into -- but as you develop your team and seeing your able to go inning rehab at a less expensive price point than everybody else is just one out -- buying and you know general contractor so it just depends on what year Nino year he ended. In -- you gotta pay for your lessons I mean I totally right keep it keep -- been -- during your first rehab. Guys you already paid for some lessons you may do another like let tuition notre 88 is that you know you just paid so there's some I get my -- -- -- is listening or when your cars left. Situation is hot on my mind bringing rain and it moved from. But these guys get virgin they get they don't want it they don't do anymore. In unlikely that that's horrible because you already paid you've already paid some lessons here. But there is there is another way to make money as you know without doing the rehab not find a quick story I am I less -- -- -- -- this year now. So I've got a client. He sent me a picture. Via text just last week but I checked me -- himself 20000 dollars. That's -- Anthony how on earth did you get -- dry your -- for 3000 dollars. As well you know I'm done driving around looking for houses psychology driving for dollars it's his first. And he could house under contract he'd been working on for about four months. And you know we he had some choices he kid did pay the cost of the rehab and on the job site every day in -- -- -- can find somebody like me who doesn't want to do that. And sell it to me. For a fee it's called an assignment so basically. It looks like this so let's say you found a thirty you've got a coupon. To buy a car for 5000 dollars the cars actually worth 101000 right. And you paid a hundred bucks for this coupon that lets you buy for 5000. You look around to -- a minute this coupon has value. And he called Dan Castro or Danny wherever you go you know what I'll sell you this coupon. For 500 dollar she. Well that coupon gives me the right to buy that car for 5000 dollar should write and it's called an assignment she's so this this guy Anthony going to -- is name. He he did defending house that he got a discount puts it under contract for 7% of value. -- and found a buyer he says you wanna buy this contract at depth when he's not selling houses he's selling a contract that track and the guy says -- -- check for 20000 dollars and he didn't have to borrow money you didn't have to show up and get his hands dirty he didn't have to do any rehab. And he turned that into week. Now the question is how many goes can you do month right how many -- does no checks are you willing to cash a month that. Can find high -- to do I mean back in the day and this is -- a lot more on a four hours doing three of five of those a month I was making in. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- so his anti -- on the. The people who don't like to get their hands dirty and there's the other I mean a lot of ladies at these investor groups and opinion their heels and skirts and they're like I got a new whining and -- tile and lame -- -- no you don't. Another one of my client's name Jolene Ross. Very similar -- you heard me speak at an investor meeting in February. And is she the following week brought me contract that she'd -- hard money to pay the past due amounts it was like six months past due. Her hard money was used to pay those back -- you payments is about 24000 dollars. She bought the house planning to do a bunch of rehab and she should be in the numbers. And before she can even spend a dime in the rehab. She found a buyer she is signed the contract and netted 65 brilliant. Bow wow that -- -- how open and my balance and -- this is her very first deal you just gotten out of perusing through school. As she was doing back flips it and you I was amazed because I see a lot of 1020 grand assignment piece. But in this fight is a good privacy -- -- -- great -- said you know what you don't need any rehab. I don't and this summer handyman and not keep cost down. How much for the contract she sold for 65. Net to her NASA I was excited about her -- class after -- Well she was excited because she found a deal right because now tired hurt. Yeah but she didn't know exactly what to do it yeah I had a fixer contrary to you know there. But that's okay because doesn't end here for the end you know. I ask you how did you find the -- so I'm always asking my Clint how did you find this -- and everybody has a different methodology in this particular gal she knocks on doors for -- very very few people do prank so. Yet so it's a mixed bag and not -- is that he even -- more question I get asked any any any circle mean. You know they -- radio or any presentation to -- ever say we can you guess from. And I can't tolerate the same as -- Internet marketing are not merge onto any letters of any color -- -- -- -- -- yellow orange. I don't know Marino's I knew I was gonna dollar messed up -- nearly every -- he brings people to -- meet Jason them. Have got five different ways that I find property right here I mean the last three that I found. One was MLS slash auction the other one was networking and the other one was -- mail campaign. No he doesn't know I was -- streak that's three when you're the team known as the last three -- -- -- your list of five way to solve the SL five ways here I you know what -- bandit signs is is another way that we find him in man now. Bandit signs are a whole another like science I mean you just -- been assigned to basically donations for brief Canadian like to collect -- -- and it and it depends -- a secret there's a little sticker that you buy this is valid per week Guinea's -- -- bright orange -- bright green and you put that on -- because 90% of the people that take you -- to the other investors. When they see that little signing that thing when they see how deal on there they think it's official from the city and they don't touch your signs. And they stayed there -- no longer be something like ballerina wedeman is there such a -- you get from the -- no no no there is how -- prison were open house's -- I mean for open house is sitting in a good as a real she -- when you pay five dollars you know little sticker well this OK okay so so like that obesity is it fair to the uninformed. Those -- signs are illegal that's right they are they also they are rarely anybody think it may do -- I was speeding -- total disclosure area. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- the piece -- -- this allegedly met then let's not let let -- alleged LA delay so you've -- but. I've never done any bandit signs and I want to. But. I you know I always like. I never -- -- kind of anger me they irritate me because -- I mean I say they do because I'm like god they expect -- you know I get my kid does this change going to -- there there's you know you have to look for. In the smaller towns and Texas have not been overrun by investors. Innocent -- -- -- -- year somewhere between here and -- you know C news. I -- -- -- just to -- with -- Steelers. Hello my name is Juan -- -- -- to buy houses. And I just wanna hear their spiel you know a night -- night -- what's your name you know not to forget who's what and what number is my father could you know -- list of who's who's got. Who's connected to what number what their spiel is is a very interest he's. -- actual mobile home manufacturers sellers that's right that's right my arm Bar Harbor and again up all over on the country DN AJ that -- Does that mean -- I like it didn't I like not like we'll want to bring him Obama jagr went on sun actually New Braunfels. You know they may get a single line I've been apart it's cash on 380 a month. And down to cash -- you -- that it is New Braunfels so. And Orlando and -- -- -- it's just artist I'm always just the mobile home issue when he gets in apart it's a year you you Charlie selling was under -- I am sure. -- -- -- -- -- -- -- -- -- -- -- think they're okay so when it was on a mobile is actually in a very desirable part Kamal farms in any braunfels I've got -- her close to water. If you like if you just if you run ordering your bad have not really on top of the order it's not near major donor month as Tex you know farce a private -- sort of on murder. But. What are the -- idea that recently -- -- in any. So. Auction option dot com just just do you nailed one off there did you name LS auction dot com gathers about. AD thousand dollars in nine equity seeing that we're gonna do about 10121000 dollar. For the work. We know that's going to be so investors out there remember this is how many Jack report on this when he's closed and we will see the actual numbers comrades. So I was. -- Stanton Durant the guy was talking about brought me deal today he'd be found it it's got to renter in it. And he's gonna assume it that's where Tom and do is that gonna take its subject to. And he's getting at below market then he called me and said hey Dan here you'll rentals you. -- Simon fee to take over this assumption. And he -- its cash flowing about 300 bucks month -- look at so. You know what you get into this game you plugged in with all these other investors deals will start to find do you is -- was talking about earlier so. He just got a jump like I have I mean I do have 400 actually 543 investors on my email us. Thank -- -- out of there is probably. Less than 10% actually do something new and then from some of the folks Kennedy and go down like -- investor profile that actually vetoed investor profile these investors assist Haiti. You know who what why when where how do you invest mean they'll fill this out and I'll find something that -- secretary to a letter. Kind of down today to the -- degree in the percentages. And now they won't do it know what I found is a lot of folks on. He is some some people never jump you know he can mean you could bring him said he 5% equity position. 45000 then you -- thousand actually can you still want to win because they don't believe they don't want us in the risk. Are you can't -- don't have a network of folks they can help them in that particular. Area of expertise than they won't jump. That's where I made my biggest mistakes and real estate investing is when. There's a deal but you know what it's outside of that area that I'm normally pretty -- yeah that's right and so I'd jump on it. And then sit there for nine months on that house and are really -- you know I'll make money but if you take you know 40000 dollar -- about nine months did you really make money. No not really because and again it's outside of that dead that area that you do you deal with something that's the reason a lot of people don't jump. We have now one time time mentioned the phone number for people to Colin Powell and I think are cleaning out the democratic 5239. Hey mom. Five point 8313. Seventy thanks Rick you know -- Christian and and -- blindness to tell folks if they want and a who wanted to be streaming to a great audience to contact them. Yet they've got to. They get their show producer Christian and Brant how many lives you -- unlimited that you are not comments live streaming and limited team and -- come. They do events videos on one of the things I think that's going to be really cool is setting up a weddings and he's got relatives across the country. You can only -- the wedding live video lots happening and and and and you know important musical events. You may weddings to I think -- can do everything that's right so they're going to be you know and his Boston Bruins faith. They had they were looking into other side that was doing just sanctioning. -- same things they're doing. And those guys were booked through 2015. Who lost their streaming this other company that it does what there they're doing now. Booked completely through to 2015 -- believe what brand Christian in it and are doing they're setting up a TV channel. And this is more and more aware you know indeed I guess -- is going from from Utah. It's exactly and -- -- -- all kind of weird because we got radio right we're in here and radios that you need that flops and T shirts and all of a -- are now or on TV. And Jack went to bring a coat to Wear the other track I'm looking at the screen ST my my head or -- and -- -- -- I'm wearing -- -- I'm asked how do we have had a major volatile and very aware -- maybe was just trying to you know trying to hide him mentally to get back up. But adding TV. Or media was still another dimension and you know. The and it definitely -- so we got a minute left on the show let's talk about final thoughts com or -- New construction. Danny you've are you prove or against -- right now. This market I think if you can get the right contractor at the right price -- better after new construction and buying an existing home. Because existing home prices skyrocketed in Austin I think to an unhealthy level. If I can go that far. And so yeah if you can find the right -- in the right builder going to build a home. What do Reggie -- you know what I don't I don't like okay new construction right now because of the time frames involved I don't like cold and on the things that long just me personally I think it's a great -- a lot of people make a lot of money but I just don't like hey Terry -- to -- in her home to sell an I guy I scraped a lot bill -- and by no Alexis. It's too long. The email in touch with me is any doubt where every gmail.com that's any doubt where every gmail.com. -- question that that point on new construction and Jason making -- a lot for a 100125. In down. 200 -- script -- you know plus or minus Dillard I mean there's no way -- 200 dollar -- you know price for your right 300. We got to wrap it up to my guys we've had a great show tonight dumb podcast to talk thirteen 7 AM. We will be back -- he covered three Bonnie Anderson it's elitist for aids -- just Myers who you're watching the spurs the spurs game. Your next week they jumped nearly studios.

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