If you’re a reader… here’s the full transcript
Joe Bauer: Welcome to this Seattle Investors Club Podcast where we talk about the nuts and bolts of real estate investing. My name is Joe Bauer and I’m here with my co-host Julie Clark. Julie, how you doing today?
Julie Clark: I am doing spectacularly awesome, Joe. How are you?
Joe Bauer: I am doing pretty darn good as well. I cannot complain.
Julie Clark: Well, I’m sure you can because you’re somewhere fun, I’m sitting in my kitchen and you’re sitting somewhere in your van. So as usual, let’s check in where you at? Tell us what’s up.
Joe Bauer: Well, first let’s be honest, Julie, your kitchen is pretty sweet, so there’s that.
Julie Clark: True that, true that.
Joe Bauer: I’m just outside of Yellowstone National Park in the town of West Yellowstone, which actually is kind of a cute little town with coffee shops and not a lot of the more main stream restaurants and things. It’s kind of like small townish, but I’ve got solid internet, which is cool.
Julie Clark: That’s good stuff, man. I have been there, I don’t know, a couple of years ago and isn’t there like a grizzly bear museum there? I think there is, you might want to check it out.
Joe Bauer: There probably is and like as far as like wildlife talk goes, I think since the last time we talked I’ve seen four moose-
Julie Clark: Wow.
Joe Bauer: … which is awesome, I was running down the trail the other day and this moose steps out onto the trail about 20 yards in front of me and these things are huge.
Julie Clark: Oh yeah.
Joe Bauer: And I looked up and I was like, “Huh, there’s a horse on the trail,” and I was like, “Wait a second. That is not a horse.” Then another one came walking by and then maybe like, I don’t know, a mile down the road further, there’s a huge bull moose, so like huge antlers-
Julie Clark: Whoa!
Joe Bauer: … that’s sitting like lane next to this creek that’s probably 50 yards off of the trail. Super cool.
Julie Clark: Do you guys ever see any other people when you’re out in the sticks on these trails?
Joe Bauer: Oh my gosh, you know what, that was so packed in the Grand Tetons, I couldn’t even believe it, like we were doing hikes that were 10 to 14 miles and it was packed.
Julie Clark: Yeah, wow.
Joe Bauer: Craziness.
Julie Clark: Because I was like always because I like to get my mothering skills on and I’m like, maybe Joe should be wearing like a bright orange jacket when he’s running his, given you guys are doing these crazy backwards stuff so you don’t backwoods, not backwards, but you don’t get shocked by some hunter or something, you know?
Joe Bauer: Yeah, for most part the national parks, they’re like, they don’t allow you to have guns or anything like that, but somebody could bear spray us, that would be unfortunate. But to be honest with you, like the Tetons and Yellowstone are so packed that it feels a little claustrophobic.
Julie Clark: Oh wow, yeah.
Joe Bauer: Yeah, it’s nuts.
Julie Clark: We are all enjoying your adventure, and we are all, I’m sure, I’d like to find the transition and sometimes it’s hard to do. So I was going to say we’re all enjoying our adventure in real estate, wah, wah, wah. What a stupid, that’s not very good transition, but it’s true.
Joe Bauer: It is an adventure.
Julie Clark: It’s true. It is. So what are we talking about today?
Joe Bauer: We as thought leaders or we try to be thought leaders in the industry. I think we do a good job, but we get asked a lot of questions, and a lot of times it’s good to just step back and go over the questions that we get asked on the regular. In this podcast, we’re just going to be talking about the five or 10 questions that you and I both get asked the most often, and I will go ahead and let you kick it off, the question that you get asked the most often there, Julie?
Julie Clark: Well, God, the question I asked, I’m going to go back to the basics here because usually they’re not complicated or they’re not like, I would say a high level deep questions that I get asked. I get asked a lot of questions that are kind of on the basic level, which is nice and refreshing because sometimes we get gone through these podcasts and club meetings and everything else and I feel like, what else can we talk about that’s a deep dive into something and I forget that, you know what, just the good old basics is good information too.
Julie Clark: One of the questions that I get asked a lot is kind of just like, what are the mechanics of assigning a contract?
Joe Bauer: Good one.
Julie Clark: The answer is basically what an assignment is, is when you have an opportunity as an investor with your company, you hopefully are not operating in your personal name, so well as soon everybody knows that otherwise call a real estate attorney and get that straightened out.
Julie Clark: When you have an opportunity to purchase a property and you go ahead and work out a deal with the seller, you give them a purchase and sale agreement. Within that agreement, as investors, hopefully investors that we’re working with and around the country know this that you should always, if you can have assignment language in your contract, that means it gives you the right to assign your contract position to another buyer.
Julie Clark: Ideally without the seller’s consent, it’s written in a certain way that you can do that as a line item on one of your contract terms. It’s totally legal, it’s a big part of real estate investing, and simply what that means is that if you decided for whatever reason that you weren’t going to end up in buying clothes on that property, you could take what’s called an assignment contract, which is a separate, I’ll call it a two-page document outside of your purchase and sale agreement, and you can assign your contract position to another buyer.
Julie Clark: So I’ll just give you a little bit of the mechanics. So you have your purchase and sale agreement that has assignment language in it or else you can’t do it, so let’s assume that we all have that. Then the question is, now what do I do? Well, you decide you’re not going to sell it, you don’t need to tell the seller or anything because you’ve already, you have that language in your contract that gives you the right to do so if you want to, although I’ll say for side note that honesty is the best policy, sellers don’t like to be surprised with stuff. When you get under contract with properties, it’s sometimes a great idea and if you find that the seller is working with you closely that you just say, “I’m going to buy it or if I don’t end up buying it, I work a lot of investors and one of them might buy that and they might be like, fine, just as long as somebody buys my property that keeps the communication flow open and no hidden agendas or anything like that.”
Julie Clark: It’s up to you guys to decide how you roll, we have other topics we discuss on other days about that. But so you simply have your contract now you’ve found, we won’t get into how you find the buyers and all that but let’s say you have a buyer to step into your position. You would take what’s called an assignment agreement for us, it’s a two-page contract. In fact, actually now that I’m thinking about it, both are purchased, Joe and I’s personal off market purchase in sale agreement, and our assignment contract is actually fully available for you guys to use or to use as a guide, or whatever you want to do. It’s on our website at Seattleinvestorsclub.com, what section it is under, Joe?
Joe Bauer: There’s a little tab that says store. If you just click on that, you should find it.
Julie Clark: Yeah, or you can throw it down in the show notes too, right?
Joe Bauer: I will do that as well. But yeah, it’s at the store tab.
Julie Clark: Yeah, it’s super cheap guys, it’s rather than reinvent the wheel, you might want to check that out and go just grab ours and then feel free to contact me at Julietteseattleinvestorsclub.com with any questions that you have on those, but it’s a nice way to get started.
Julie Clark: You take a two-page assignment contract that basically says that the purchase and sale agreement dated whatever the date is assignable to this new buyer for an assignment fee, and that’s all negotiable. The assignment language that’s on the MLS contracts, those there isn’t an assignment form, I think it’s form 432 on the MLS. If you’re not an agent, you can’t use it, but that also doesn’t have any place for you to write in a fee. You need to be able to write in what your assignment fee is.
Julie Clark: You need to have terms in there maybe that say that your assignment is not assignable, so somebody can’t daisy chain it down and try and make money off that again. Then it gets complicated and the seller finds out and they killed the deal, but the assignment contract is totally separate from the purchase and sale agreement. The assignment contract is between you and the buyer, you find that’s going to step into your shoes, it is not between the seller. The underlying seller is not a party to that agreement, they don’t need to see it, it has nothing to do with them.
Julie Clark: It’s a separate contract that gives your new buyer access and the right to close on the terms you have in the underlying purchase and sale agreement, and that’s about it, guys. That’s how you assign you, when you get to the point where you have those documents signed by you and the new buyer again, it has nothing to do with the seller on the assignment portion of the contract. Then you would go ahead and you would give that assignment agreement to the escrow officer that’s called out in the purchase and sale agreement as being the closer and they’ll take it from there.
Julie Clark: We use Lynn Rivera at Escrow Services of Washington, that’s who we use for all our investment transactions and that if you guys want to call her, we use her just on our wholesale deals, I don’t use her on the back end when we realist or anything like that. She’s great, but that’s how you do an assignment, basically it’s purchase and sale agreement is one document set, assignment agreement, just a two-page document. Why is it two pages? Because the first page is kind of the standard legal information at any assignment agreement would have the addendum that we use, calls out our specific things, like it says.
Julie Clark: If the new buyer terminates this agreement, this assignment agreement for any reason that the earnest money deposit that they are required to pay as part of this contract assignment converts to a termination fee. So we get to keep that in case they back out, that normally doesn’t happen to us, but you never know it certainly could. That’s it.
Julie Clark: How do you get paid an assignment is another kind of part B question that I get asked all the time? Typically, it’ll be just be a line item paid by the end buyer, your new buyer that gets wired to you at closing from the escrow company. Again, the seller won’t see it. It’s not recorded as part of the purchase price, it’s just like an expense of the buyer.
Julie Clark: The end buyer that you’ve assigned to will pay that to you, we’ve always done it through closing through escrow, some other wholesalers may require or try and get that paid upfront before closing at the time of assignment. We don’t do that because it’s burdensome and we want to make sure that everybody’s happy, you know, we’re not just, that’s just not how we roll. So most people don’t roll that way, there may be a few. If anybody asks you to pay an assignment fee upfront before closing I would be leery of that, but that’s just me. It happens. But that’s it.
Julie Clark: Now, if you’re a real estate agent and you’re also an investor and you’re signing your contract, the question becomes, well, is that considered a commission? It’s an assignment fee. You’re not actually getting paid a commission, you’re getting paid a fee to step into your contract position. You’re not brokering a property, you’re basically selling your contract position. Do you need to tell your broker? Yes, you do.
Julie Clark: You need to tell your designated broker that you are an investor that you’re going to be buying and selling properties and that may involve collecting, doing an assignment, collecting an assignment fee, and is that okay with them? Your goal on that as an agent then is if you assigned it that you would probably get the list back. That’s what I would. You can’t require it, but professional reciprocity would mean that most likely that buyer is going to give it to you or you’re probably never gonna assign them a deal again, just everybody’s in business to make money.
Julie Clark: Your brokerage firm is going to make money on a nice renovated listing and it’s between you and your designated broker how to treat an assignment fee. It’s technically not a commission, but they need to know about it and just be open if you want to talk about which brokers understand it and which don’t as far as designated brokers, some do, some don’t, and we’ll talk more about that or we can give you some ideas of who might be investor friendly brokerages if you come to SIC, one of our Seattle Investors Club meetings or feel free to just email me Julietseattleinvestorsclub.com.
Julie Clark: Those were the long answers that I just gave you. The easy answer is, why I see all this in writing? Just go grab our contracts of Seattleinvestorsclub.com off our website. That’s the simplest way and then call me with your questions.
Joe Bauer: I think that’s good though, Julie, because when I was first getting started, it would have been really nice to have somebody just lay that out for me like you just did, really nice.
Julie Clark: Yeah, I think people get … it’s those little tiny details, they get the concepts, most people listened to our podcast or bigger pockets or whatever, Real Estate Guru, they read their books there or whatever, but it usually comes into these finite little small details that just that one or two questions where people get hung up.
Julie Clark: Again, I think one of those big ones is, does the seller need to know about the assignment? Well, no, they don’t need to know about the assignment, they don’t need to be a party to any assignment paperwork that’s between you and the end buyer. You as the buyer and the buyer that’s going to replace you. They don’t know, the seller doesn’t need a copy of that, doesn’t need to sign it, you do need to send it into escrow, and it needs to be between you and the other buyer party, the end buyer it needs to be signed.
Julie Clark: Again, anything can be written on an addendum, remember that, any terms you want to have on any contract can be added through like addendum language. If you’ve had experiences and you’re like, now I’m not going to let that happen again. Create a contract term and make sure it’s included in some addendum that you’re using and whatever contract that you’re using.
Julie Clark: Now, disclaimer, probably most of you listening are not real estate attorneys. So should you write your own contract language? No. Can you draft something and then with the concept of what you’re trying to accomplish and then give it over to your real estate attorney to bless off? Yes.
Julie Clark: Okay, so both our assignment agreement in our purchase and sale agreement that are off market have been blessed off and reviewed by a major attorney that deals with a lot of wholesaling actually nationwide. So they were written for us, so just know that but conceptually they’re just great info for you guys and we have disclaimers on there, but there’s disclaimers if you open a package chewing gum and chew it.
Julie Clark: You guys use be smart, use your own judgment and operate under your own due diligence. But there you go, man, I’ve learned a lot of time on that. You know what it is, is that I had about 10 ounces of coffee instead of 20, so I’m a little in that draggy spot in the middle. If I would have drank my other 10 ounces, I probably would have answered that in about five minutes instead of the 15 or 20 I just took, so my apology.
Joe Bauer: Same amount of words just half the time.
Julie Clark: Yeah, geez! What do you got, Joe? Let’s get one of yours out there.
Joe Bauer: Yeah, well probably the question that I get the most often or maybe not the most, but one of the top is what marketing works for us and I’m sure that you’ll have some things to chime in on as well with this Julie, but just so you guys know, some of the marketing things that we’ve tried it are pretty much anything that you can think of, we’ve tried it, why not, and that would include obviously Direct Mail, Facebook, Google Adwords is a big one that people always ask about.
Joe Bauer: When it comes to Direct Mail postcards versus letters, flyers, gosh, what else have we tried. If it comes up-
Julie Clark: We have no other guy out on the corner of spinning the sign, you know what I mean? Like the pizza guys or whatever.
Joe Bauer: We haven’t.
Julie Clark: We have not done that, we haven’t really, we’ve done bandit signs, but we didn’t do them that long because we’re lazy, let’s be honest.
Joe Bauer: Yeah, well, and here’s the thing with bandit signs is that you as the business owner, if you need to hustle, do those bandit signs, get out there and do them yourself. As you start making money, you need to find somebody to replace those jobs you don’t like to do, and it’s really been hard for us to find people that will committedly put those things out and take them down when the city or county or whoever calls you and says you need to take them down. Are they great? Yeah, I mean I’ve definitely had success early on in my real estate investing life with bandit signs, but it was only when I was putting them out it never been very successful having somebody else to it, because you usually get that call from the city or whatnot and they’re like, take him down now and you call your sign guy and they’re nowhere to be found.
Joe Bauer: Can they work? Yeah. I highly recommend them, as far as the other stuff goes though, Facebook, I think we’ve done one deal off of Facebook but it’s been kind of a struggle and I constantly am trying to tweak that. As far as the marketing goes though for deals versus our investment club that we talk about Seattle Investors Club, it does work. The Facebook ads have been working for our club. So I know that’s a far different game than trying to find deals, but we have had some success and continue to try and use the Facebook marketing because it’s so cheap right now.
Joe Bauer: I keep hearing people talk about that because I do a lot of reading and learning about marketing and people keep saying that Facebook is cheap right now, but they don’t expect it to stay cheap. We’re always trying to figure it out and do as best we can with it, with the assumption that it’s going to jump up in price, like Google Adwords in the future and hopefully we can figure out what works and get an ROI, a solid ROI on it before that happens.
Julie Clark: You know what I think about marketing, I think it’s hard for me, I’m a real estate, a number cruncher head, so that side of my brain is a weak. That’s why Jona are great partners because he’s strong on that side, I am weak. It drives me nuts. The whole marketing stuff, I feel like my success is if I simply can get somebody on the phone or I can get in person with somebody, that’s why I’m actually a fan right now of the whole door knocking, just because my skill set, if you’ve got a great skill set of talking to people and you know which hat to put on because I wear many different hats, which makes it actually worth my time to talk to anybody because it doesn’t really matter what they say to me. If they own a piece of real estate, I can make some money off of it, I don’t care how.
Julie Clark: That’s the beauty of being an agent and an investor and a business owner and just being able to switch those hats around. I think door knocking, like a driving for dollars, door knocking campaign with some sort of marketing piece that gets left at the house with whatever message that is your niche. We’re about to attempt that on a specialty program, I guess that we offer that probably nobody else is offering that is great for us because we’re on both an agent and an investor. If I miss on one little part of the message, I can pick it up on the other.
Julie Clark: Don’t worry with the details on that right now unless it really works, then I’ll roll it out to you in one of the programs that we’re working on for all you guys. But door knocking, it’s great practice, it’s cheap. That’s where I’m at and always make sure you guys to collect cell phone numbers if possible and email addresses because remember, if you have an email address now you can follow up very easily with people just through email, right? A lot of people respond through texts, so just be focused on getting texts or cell phones that you can text to and making a notification on your marketing, whether it’s a landline or it’s a cell phone that you can text too.
Julie Clark: All this marketing talk follow up is the key, but I guess you can’t follow up unless somebody talks to you in the first place.
Joe Bauer: Yeah, and we could talk about follow up with marketing too, and that’s a good thing to talk about after we go through all the different marketing types that we’ve done. People always ask me to if Google Adwords work and we did them for about a year and a half and they did work, we were in the black but you should know that we were never in the black enough to really scale it and make it worth our time. It’d be like, “Hey, we spent 10 grand and then we made 12 and then we spent A and we made 10.”
Joe Bauer: It was like we kept jumping forward, but after doing that a handful of times, we decided that it probably was not worth our time because it didn’t look like it was moving in the right direction. Can it work? I think it totally can work if you’re in a market that is maybe smaller or less tech savvy than let’s say Seattle or San Francisco or maybe even LA, you’re probably going to have less cost per click down or wherever you’re at, and you should give it a shot. I would definitely give that a shot but it didn’t work for us.
Julie Clark: It takes money to make money, that’s the hard part, you know?
Joe Bauer: Totally.
Julie Clark: Money to make money. All this marketing works, all of it, all of it works but the problem is it’s you have to have faith in the process and you might have to drop a bunch of money to get over this hump, especially when you’re getting started to even if you have a limited budget. You need to do these marketing, pick whatever your marketing niche is going to be and become the master at it, whether that’s direct mail or you want to commit to the pay per click or you know, whatever you want to do, driving for dollars or door knocking. You should stick, if you’re limited, stick to one. I think, I don’t know, I’m talking off the top of my head just as one of you guys here, but we have become masters at direct mail and part of that is we also have good phone skills, right?
Joe Bauer: Yup.
Julie Clark: So if you can just mail anything out every week or twice a month, you just keep going and I promise you it’s gonna work, but you have to not worry about when it’s going to work. You have to say, I’m gonna commit to doing this for nine months and you need to not question it on month three if it hasn’t gotten exciting for you yet.
Julie Clark: When you get started, put your budget aside and say, “I’m going to use $10,000 of my money and I’m going to commit to marketing,” or, “I’m going to commit 10,000 hours of my time,” I don’t know if that makes sense, but you guys get conceptually what I’m saying. Time or money, right?
Joe Bauer: Yup.
Julie Clark: Money allows you to be lazier, right? If you don’t have money, then you got to have hustle. We are experts at hustle and hustle is fun, it’s actually more rewarding on the hustle to be honest with you. As you get going, obviously you want to try and scale back how much effort you have to make to make money.
Julie Clark: So if you have money, do a consistent direct mail campaign and I’m a fan of postcards because they’re cheap and they work, and what’s the message? That’s another one of my questions, right? What’s the message we put on there? We’ll talk about that in a minute. But as far as my per, being on the one that goes on all these appointments, direct mail has been the big winner for us and that’s been just postcards. Forget about the message, it’s the postcards and the follow up. Really, it’s the follow-up and you just got to get that first call whether they say yes, no, or piss off. We’re actually looking at dead leads from two or three years ago that told us to piss off.
Julie Clark: Well, he told us to piss off. Well now we’re gonna, then you’re worth another call here three years later. Let’s put it that way.
Joe Bauer: Yeah, absolutely.
Julie Clark: [inaudible 00:27:05] markup is changing.
Joe Bauer: Julie’s completely right, it is the direct mail marketing that has been our best marketing source for sure. People always are surprised at that when I say it, but I was reading something just actually, it’s either this morning or yesterday, and it was a marketing book that was not real estate related and they had talked about how print marketing had decreased so much in the last couple of years that it now works again, or it’s working better than it has because people stopped using it.
Julie Clark: We recently, our last mail drop, we probably had more calls than we’ve had in years, I think, of you know, percentage wise it feels like right now we are, phone’s been ringing off the hook for 10 days to two weeks right now off of one of our standard drops. It’s not anything that we haven’t dropped before, didn’t even change the message or what we had on there and boom. But part of that is probably because the market shifting. It’s about pushing through the slow times, I think, right?
Julie Clark: That’s the difference between people who make it and they don’t. They push through the slow times, you just keep going. It’s called faith in the process, and what? The only thing you need to decide is how much money am I willing to commit? Where I’m never gonna give up no matter what happens in the middle, as long as I’m measuring and tweaking, but the actual idea of consistently marketing, I’m not going to give up, even if the first four months are slow, I’m going to push on and push on. That’s called faith in the process.
Julie Clark: You have all these experienced people that’ll tell you, that makes or breaks the big boys and the big girls right there. So if you don’t have the money, then you have the time and the hustle. How many hours are you willing to commit to over the next nine months? I guarantee you it’s going to work, but you just pick that number and you do not waver it. Can you adjust how you do it or which neighborhood you go to or how many times you do a knock, knock, knock, knock, or do you do a bam, bam, bam? I mean, whenever you went into, you know what I’m saying?
Julie Clark: You just have to commit to the process, I can’t tell you how many times Joe and I had been up against the wall where we’ve been like, “God, are you kidding me?” It’s like every year, honestly, every year. If we just continue to push through something always good happens. You got to believe in the process. Time or money. Time or money.
Joe Bauer: Okay, yeah. Before I forget because we always forget to promote things on here or at least I do. We have a discount code for yellowletters.com if you guys want to use it which is Seattle Investors Club. If you want to get going on your marketing and you need a little discount, go to yellowletters.com and use the code Seattle Investors Club.
Julie Clark: There you go, right?
Joe Bauer: All right.
Julie Clark: What about talking about like, let’s go back to … I get this question a lot. What do I put on? Or here’s my postcard, can you look at it? Tell me what you think, I have people do that with me and then I’m like, “Oh, you went with the glossy color same, no guys …” You need to go as cheap as possible, is my opinion.
Joe Bauer: Oh my gosh, Julie. Just give me just a second here. I’ve had people more often than not send me their postcard and I give them advice on get rid of this like you said, glossy, creative looking, blah, blah, blah thing that doesn’t usually matter, and then they keep it on there and I’m like, “Okay, do what you do. I’ve never done this before.”
Julie Clark: Yeah, zero calls, guys. Zero calls on that sort of stuff. Don’t go with what looks like a realtor, postcard. Basically, your goal is to make it look ugly and like handwritten, like you barely care. Like you’re just like, “Hey, if you want to sell, I want to buy,” I mean, honestly, cheap, flimsy, it doesn’t matter. I mean, is there some sense to have some uniqueness on it?
Joe Bauer: Maybe.
Julie Clark: There is, but don’t maybe. But don’t overthink it, honestly. It’s less about that. Once you get rolling and you’re feeling comfortable, open your brain up to start thinking about how you want to get creative about it. Otherwise, I mean simply you just want to say, “Hey, if you’ve considered selling, I’d like to make, I don’t know, a fair cash offer, no low ball, no commissions, as is, if you’re interested, here’s my number.”
Julie Clark: I mean, honestly that simple because when people want to sell, they want to sell. Once your skill set and it gets larger and you have more tools in your tool belt on what you can offer other than just simply cash offer as an investor, there are so many more things that you can do that if you guys stick with us, you’re going to learn. Of course my favorite is to get your real estate license, I’ve said that a million times because you’re spending all this money, we’re talking about time or money, right? What’s more valuable to me? Honestly, my time.
Joe Bauer: Totally.
Julie Clark: So my time is more valuable, I’ll overspend on the money just to keep my time, but would that said time and money both valuable? Why the heck would you take any of your opportunities off the table if you’re having to make that big of an effort or commit to spending, let’s just say 10 grand over nine months or something like that. Don’t you want to have every toolbox that you can? I mean, if you could add on a tool for a thousand dollars that could 100% change your success and what you can do with the leads that you get. Why the heck wouldn’t you do that? It’s called a real estate license.
Julie Clark: Yeah, if you want to know what I’m talking about or you need to know, you want to know more about how to be an agent investor, email me at Julieseattleinvestorsclub.com because it’s what the smart people do guys, in my opinion. The rest, I’m not saying there aren’t smart people that don’t have a license. There’s a lot of people that have a license and don’t use it. They network and they buy from wholesalers, but they know, they know it’s beneficial to just have one on the books. So you can pull it out and use it when you need to.
Julie Clark: I will remind as a badge on front, I love it. That’s awesome for us. Some of those big investors, at least I know in the Seattle area, they might not matter. I might never see them listing anything or using their license, but a lot of them have it because they know the value is there. It’s almost like an insurance policy too. Don’t get me started, don’t get me started. You want to know more? Hit me up, but keep your postcards cheap and simple. The key is, is that keep good track, always asked for a phone number and ask if that is a cell or a landline and always get an email address.
Julie Clark: What does that mean? That means that you don’t have to mail them anymore. I mean technically should you mail somebody that calls you again? We do, right? We only stopped mailing if we’ve engaged with them, right?
Joe Bauer: Totally.
Julie Clark: Just because they called and we didn’t get a yes. You got to decide for yourself on that, but we don’t always take those people off our list until we’ve had like a real conversation with them.
Joe Bauer: That’s another thing that-
Julie Clark: Keep it simple.
Joe Bauer: … I didn’t talk about earlier was the, how many times should you mail them? We don’t stop, that’s the answer. Don’t stop.
Julie Clark: You want to know what? Claudette our call ninja just told me yesterday, she got a call from off our postcard from actually a Coldwell Banker Bain Real Estate agent. Every time we get agent calls, I figured they’re calling a bitch of Saturday, yell at us or something like that. But we always take everything head on. If anybody wants to call and yell at us or complain about us, we call them right back and we take it head on because we have nothing to hide, nothing to fear. It actually always knock on wood, works in our favor that all of a sudden people are like, “Oh my God, let me know more about Seattle Investors Club.” Communication is key, right? But I was like, “Oh, here’s an agent calling twice say, so call him up, be nice, do your thing.”
Julie Clark: You know what that person said? They call her up and they said, “I just want to tell you that you guys, I don’t know what it is that you 100% do, but I’m so impressed with you because you guys have mailed me and called me and you constantly mail me and you’ve called me like nine times and I’ve never spoke to you. And I’m calling you back now after nine calls and I just want to tell you how good of a job you’re doing.” I am not kidding.
Joe Bauer: Wow.
Julie Clark: Yeah, so of course she called me.
Joe Bauer: Can we get that in writing?
Julie Clark: Yeah, no, but I’m just saying, I said that’s exactly my point in what’s awesome. When you get a call or somebody doesn’t answer or somebody doesn’t answer, you’ve called them six or seven times, you should be like, “Cool, that was number seven.”
Julie Clark: Now, I just need to get to like number 11 and I’m going to get this deal on the contacts. That’s the mentality that we teach our team. Every time you get no answer or call me in three months, you’re like, “Awesome. One more click forward because we know once we get to that seven to nine, 12 times, we’re going to get that deal.”
Joe Bauer: Yup.
Julie Clark: Right?
Joe Bauer: Yup.
Julie Clark: Not always, but I’m telling you guys to keep the faith, and get happy about that you’re on your sixth no. You don’t worry about it, that’s like one step closer to heaven. There you go with that one to death too, right?
Joe Bauer: Put it down.
Julie Clark: What did you get on that? What do you put on a postcard? I don’t know. We’ve tried some stuff, most everything never works any different than anything else. Isn’t that the answer?
Joe Bauer: Yep, and actually the fancy seemed to work worse than everything else, but then every other kind of tests, verbiage and whatnot that we’ve tried seems to just be a matter of when we’re touching the people and if it’s the right time or not.
Julie Clark: Right? Yup. I mean if you have a niche and you can offer some, maybe there’s a way to find that niche but it’s just a constant thing you’ve got to try. The point is don’t give up.
Joe Bauer: That is the super point is that you just put your head down and do whatever it takes, like what you said earlier.
Julie Clark: Right, all right. Well, let’s go up to the next one here. One of the questions I get asked all the time because I’m an agent investor, big broker. If you guys need help with your properties on evaluations or listings, I’ll give you a discount, and you can work with the 18 here. I get asked all the time, I get asked this even when there’s other brokers involved, which is fun and irritating for me at the same time, but how do I calculate the ARV on something when there’s no great comps? How do I calculate the market value, my exit value when there’s no great comps?
Julie Clark: Well, first of all, if you’re being sold a property from a wholesaler, remember they’re trying to sell you something so you should never trust their comps, you always got to figure out what your own are. My number one answer to this question is you shouldn’t be buying a property that has no comps. I know you’re desperate and excited to get a property, but the reason why you’re actually getting the opportunity most likely is because all the other experienced investors are passing on it.
Julie Clark: If you’re new and you’re being shown a property by a wholesaler that has no comps, there’s probably a reason which is that other experienced investors have passed on it. Does that mean that it’s a no go? No, it means it’s your chance to negotiate, right? You shouldn’t buy a property that has no comps and one comp, one comp is not enough. Especially right now when we were in a shifting and adjusting market.
Julie Clark: I want to say off the top, any properties that you’ve looked at that sold in the first quarter of 2018, that sold anywhere from January or even closed in early June up through that time. We are in a 100% different environment right now and so a comp on the same street that sold in April of 2018, I would actually scale back about two or three percent of that sale price when calculating the ARV for your project if you’re in the Seattle area or Bellevue or something like that right now. If you’re further north like shoreline even or further north or you’re further south, south King, Pierce County, super hot.
Julie Clark: That’s a different animal. I’d say that you might even scale back five percent right now on your ARV as compared to a property that sold the first quarter or up through April, May, maybe even June. Okay, just a little side note there and it is August 2nd, 2018 when we’re recording this podcast. Times have changed, we’ve shifted, we’ve kept. Is it a slum or summer blip? I don’t think so. I think it’s a full change in buyer sentiment. That’s my opinion and you guys can follow along with asking anybody else their opinion and make your own.
Julie Clark: How do you calculate ARV when there’s no great comps? The question is, when you comp properties, you have natural borders of the neighborhood that you’re in. So your property’s located on some street into the north, into the south. There are main thoroughfares, don’t cross over those. To the east and to the west, there’s main thoroughfares, don’t crossover there, stay within your box or whatever those. You might have that Main Street D like one block over.
Julie Clark: Normally when you comp you can go out like half a mile radius, but you want to stay inside the box of where the main streets and main thoroughfares are around the property that your subject property that you’re looking at. The question is if I can’t find any great comps in there, but there’s one just on the other side of one of those main thoroughfares that it looks like a perfect property and matches up perfectly, should I use that as a comp? My answer is, no. I would be reluctant because why? Because it is probably a different neighborhood if you’ve crossed over a main thoroughfare, that means it could be a different school district, and different school districts have different values, they like them or not.
Julie Clark: If it’s a better school district and you’re crossing over, you need to maybe consider that, but understand that yours maybe should be lower if that makes any sense. I prefer never to cross over the main thoroughfares instead I prefer to go back in time. Instead of going just three or six months back, maybe go back a full year and just look for something within the same neighborhood area rather than jumping across the lines for the reasons that I’ve described there.
Julie Clark: The other thing you can do is, let’s say you’ve got a rambler or let’s say you’ve got a one story with a basement house as your subject property, and there’s only been like a bunch of ramblers that have sold in the last three to six months around you. Your one story with a basement subject property is 1200 square feet on the main floor and 700 square feet in the basement, and then you’ve got this rambler nearby that is 1200 square feet on the main floor and doesn’t have a basement obviously.
Julie Clark: One of the things I might do is I might just say, “Okay, well the main floor spaces are the same,” so what did that ramble or sell for that was 1200 square feet? My property, if it was main floor, the main floor should be worth about the same, assuming the finishes are equal. But I have this 700 square feet of space downstairs, how should I calculate that? Well, when I calculate my comps, I always break it down between main floor space and basement space, or main floor space and second story space or whatever. I always break down the square footage side by side of all my comps.
Julie Clark: Any premiums or differences in sizes I apply kind of a price per square foot too, that’s always worked for me and I’ll share, I’m not hiding the information, so I’ll share with you guys what that is. If I had two similar homes and one was 1200 square feet and one was 1400 square feet and they were both ramblers, I would take that 200 square foot difference and I’d multiply it by 125, like $125 a foot, regardless of what the price per square foot of the home would normally sell for.
Julie Clark: I cap it at $125 a square foot to calculate that premium difference. If it was basement space on the differences in sizes, I use $50 a square foot because basement space is worth less than main floor space. So back to our main question, how do I calculate ARV when there’s no great comps? So I’ve got my subject property is one story with a basement and the only thing in my neighborhood, because I don’t want to crossover lines and main thoroughfares to go into other neighborhoods to find a matching property. Maybe, I’ll take that rambler and compare the main floor square footage, calculate my $125 a square foot difference on size, and then I’ll take that extra 700 I have in the basement on my main floor and I’ll calculate that by $50 around my subject property on, calculate that by $50 a square foot.
Julie Clark: If the rambler comp sold for 500 and my main floor space was 200 square foot larger, whatever, 200 times 125 is, is what I’d add to the premium for the main floor space on my comp. Then I’d add another 700 square feet in the basement times $50 a square foot as the premium to add on for that basement space. Do you guys following what I’m saying? If you remember Seattle Investors Club, we have a training video related to this exact thing, how to comp properties right inside our membership site? It only costs, what? 220 bucks a year to join Seattle Investors Club?
Joe Bauer: For the year.
Julie Clark: For the year, that one lesson plus all the access to everything else, that one lesson of watching that video is worth $220, I can guarantee you that, right?
Joe Bauer: Yup.
Julie Clark: You guys get what I’m saying is if I’m forced to do that, an appraiser won’t do that because an appraiser only will use light kind of light kind properties. But to calculate an ARV when there is no good comps, that’s probably how I would do it, or I’d go back further a year further and I’d make some assumptions like, “Okay, properties are worth 12% more now than they were a year ago.” I do some research on what the gain was year over year and I might do some interpretation there, but rarely if ever do I go outside the natural boundaries of the neighborhood that I’m in?
Julie Clark: I mean, I’ll say I never do. I mean, I don’t, that’s like the very last thing I would ever do. The number one point though, aside from all these calculations and detailed number of dark stuff, is that I wouldn’t buy a property that has no comps. I would not, but that’s me, right? I wouldn’t, or I would be super conservative. As a newbie and you’re getting some great opportunity from some big wholesaler, there’s a reason if it has no comps, then call me and let me help you before you decide and commit yourself to that deal.
Julie Clark: Because a lot of time I see even very experienced wholesalers provide comps that are BS because they can’t find any either. They go a mile away and they cross over the borders of those neighborhoods. And I’m like, “How can that possibly be a comps?” It’s a completely different neighborhood, different school district. Beware. Buyer beware. They’re just selling you something, right? So whose fault is it? Is it theirs for pulling the wool over your eyes? No, it’s not. It’s yours for not using your common sense. Don’t trust anybody.
Julie Clark: Get a second opinion. I’m here for you. Julietseattleinvestorsclub.com. Okay. Oh, I just tried to slap them. I’m trying to simulate a mic drop, it did not work. Again, another long-winded answer for my long-winded day. While Joe was talking, I tried to down and eat a bunch of gummy bears, see if I could boost myself up to like the super energy level so I’d maybe have shorter answers, it didn’t work. Sorry.
Joe Bauer: It didn’t work. Do you feel more energized though?
Julie Clark: No, no, I just feel thirsty.
Joe Bauer: Okay.
Julie Clark: Sorry, Joe, I’m breaking all your rules, but …
Joe Bauer: Well, I can talk about what my next question is and you can go get some water.
Julie Clark: Okay, that sounds good.
Joe Bauer: Well, we talked about how, maybe we should even tell people the questions that I get asked that are not real estate related and one of them that I get all the time from real estate people is how do I get in shape? To make this as short as I possibly can and as simple as I possibly can because we do believe in health and wealth around here, we believe in-
Julie Clark: Those the health side and I’m the wealth side, let’s be clear.
Joe Bauer: There you go. However it works and it is important to be healthy so that you can spend all this money that you’re going to make or that you are making with this advice that we’re giving you. I’ve been trying to break this down for the people that asked me and I get asked this question every single event we have, definitely, or after people get to know me a little bit, let’s say that we’ve talked on the phone or had coffee or they’ve been emailing back and forth.
Joe Bauer: It’s like the 10th email they’re like, “So I know we’ve been talking about real estate, but how can I burn some of this fat on my stomach or whatnot?” It always comes up, most easy. Three steps right now. Try out intermittent fasting so you only eat from 12 noon until 8:00 PM, so there’s eight-hour window. Do some weightlifting if you don’t know what to do, go to crossfit.com, they have workouts they put out every single day and do some cardiovascular training. So running, walking, swimming, writing, something like that.
Joe Bauer: Weight lifting three times a week, cardio three times a week, and intermittent fasting. And that is it for my …
Julie Clark: How long you do intermittent fasting?
Joe Bauer: What do you mean like per day?
Julie Clark: No, I mean, so you can eat between 12 and eight, do you do that for like you only eat during those hours for a week or what?
Joe Bauer: For life for the most part.
Julie Clark: For life.
Joe Bauer: Yeah, and I’m trying to make this as simple as possible. If people really wanted to dig into that a little bit more, we could talk about you know ways of cycling through that and doing it for a certain amount of time. The body has been adaptive organisms, so doing something forever usually doesn’t work that well. You could do 100 pushups a day, but it will probably only get results for the first month and then it will just-
Julie Clark: Oh my god. That must be my problem.
Joe Bauer: You’ve been hitting those thousand pushups a day for a while now, huh?
Julie Clark: God, I wondered why I was not working when I’ve been doing those thousand pushups a day.
Joe Bauer: Yeah.
Julie Clark: I know.
Joe Bauer: Yeah, we need to put a weight vest on you or something or have the kids stand on your back, that would work.
Julie Clark: Yeah, that would work. They would enjoy that. So what else? Where can they find? You have awesome other sites that people if you are interested in wealth or health, wealth, health, fitness, all that.
Joe Bauer: Yeah.
Julie Clark: [inaudible 00:52:14] what have you got?
Joe Bauer: If you guys want a deep dive, make sure that you check out allaroundjoe.com and I dive very deep into stuff. Ask me questions if you have them, go to allaroundjoe.com, ask questions. I may try and make things as simple as possible so that people will get started just kinda like, well what we’re doing here with real estate. If it’s too complicated, it’s not going to work or you’re not going to continue doing it.
Julie Clark: Exactly.
Joe Bauer: Same thing with your health and your fitness and like Julie said earlier, “You just have to commit to it and know that you’re going to keep moving forward until you get the results that you want.” If that’s like, to make a million dollars in real estate, you just put your head down and you keep committed to that and you keep adjusting along the way. It’s not like you just keep doing the same thing and hope for a different result, you adjust it. If you wanted to have, if your ab show up or whatnot or be super healthy, have the best blood work ever you just keep adjusting what you’re doing until you get to that result.
Joe Bauer: It’s not like, “Oh, I did it for a month,” or you know, like the example earlier, “I did it for three months and I didn’t get a result.” It’s like, well, that was probably because you only did it for three months and you know, point one percent of the population ever got lucky enough to have those results work in the first three months.
Julie Clark: There you go. It’s kind of like real estate investing. Same thing. It did work. We have a name for that, I think I’ve heard a name called, we call new investors newbies, but we call people that have a home run in the first three months, lucky’s, right?
Joe Bauer: Yeah.
Julie Clark: It could be confusing because you think that’s the norm. Well, it’s not, but it can be. The best thing you can do, I’ll just transition, “Hey, look at a good transition into one of the questions that I get,” which is how can I find other investors to partner with, right? That’s a transition off of, how do you get started? How do you make something happen in the first three months?
Julie Clark: Best way to make something happen in the first three months is to offer or whatever, you have to offer it to somebody that’s more experienced than you. I think we did a YouTube video about this, about how you need to assess what it is that you’re bringing to the table, right? That’s either money, hustle, maybe you’re a real estate agent, or maybe you’re a contractor. Those are things that you can bring to the table.
Julie Clark: Then go network and find people that are also interested in real estate investing that have the opposite skillset you do, and you guys partner up and share skill sets each bring something to the table. How do you find those other investors to partner with? Well, you got to show up and network, you got to go to the Seattle Investors Club meetings or you gotta go to, they were pockets meetups or any of the other real estate investing meetups around town.
Julie Clark: And you just got to start networking with other investors and seek out who has had some experience. You don’t want to partner with somebody with no experience to no experience to people, you don’t get very far in my opinion. Even if one of you is a contractor and one of you is a broker, I still think that if you’re both brand new, that’s not a perfect match. I think matching up with somebody that needs your skill set because they lack it on their team. Maybe that’s money, maybe they need some equity for the some of the deals they have and they’re willing to partner with you and show you everything they know.
Julie Clark: That kind of partnering is what I’m talking about. “Partners” is not like true company partners just kind of deal by deal, but how do I find other people to meet other investors that I might be able to learn from? You can’t meet people on a podcast, so you’ve got to commit yourself to going to every meetup you can find. Ours being one that we will absolutely welcome you too and not only that, try and introduce you to the people we think would be good partnering with because we know who the experience people are.
Julie Clark: Could you put something out on your social media that says, “Hey, I’m interested in meeting other real estate investors, I bring this to the table as anybody need this and how can I help you?” You could, it’s impersonal. I don’t think it works, I think per person contact is best in those situations, so you’re gonna have to hook it to all those meetings and you’ll probably learn something too and it’s fun. We’re a community of friends. I know we are here in the Seattle area, so that’s the best way to do it.
Julie Clark: Yeah, read on your own time, study on your own time, but get to those meetings in person. There’s always something, we record all our meetings and I know that some of the other clubs in town and meetups record might record their meetings, but there is something that absolutely is different about being there in the room because camera’s not on the whole time and there’s always something special that comes out of attending one of those meetings.
Julie Clark: If you’re not willing to do that because you’re busy, you work, you can’t find the time, guess what? You’re not going to make it as real estate investor because it requires a lot of time, a lot of work, and doing whatever it takes. If that’s too big of a mountain for you to climb to get your butt to a meeting, then I think you have extra-large mountain to climb. That’s my word on that.
Joe Bauer: Or even an impossible mountain to climb.
Julie Clark: Maybe, so. So networking is huge. That is the question. How can I find other investors to partner with? Answer. You got anything else, Joe? I might have one more.
Joe Bauer: Yeah, I have the people that asked me how do I get started, which is kind of like what you said, how do I find people to partner with?
Julie Clark: That was one of my questions. Look at that.
Joe Bauer: So yeah, we can kind of both give our opinions on this one, and the biggest thing that I always tell people is that, and I think this kind of plays off of the same thing that you were just saying, like you got to show up and do the face to face time because when you’re getting started, people, if they get to know you and you’re cool, genuine person, they will go out of their way to help you out. When you’re getting started, if you can go and meet a bunch of people and talk to them and tell them what you’re trying to do, then I recommend either doing work for them, like trying to see if you can take your skillset, like what we’ve talked about a lot of times.
Joe Bauer: Maybe you’re a marketer or maybe you’re a hustler, maybe you’re an extrovert and loves going in and talking to people, and you could be there door knocker or whatnot. But getting it on their team as best as you can. Like I said, sometimes you can get paid minimum wage or something like that on a deal or they have some other things set up for you, but you go and do work for those particular people, but you have to go and meet them first.
Joe Bauer: I get emails probably a couple times a month, the people saying like, “Hey, I would love to do something for you, so I can learn from you guys,” and I’m like, “I don’t know who the heck you are,” and if it’s not that I don’t want or that I didn’t have something for them to do, but it’s like, “Man, if I met you like three different or one, two, three, four, five different meetings and we like talked and I got to know you, man, and then you asked me that. I would go out of my way to help you out. I totally would, but I don’t have that same feeling in my gut when I haven’t actually seen you, met you, felt your energy, all that fun stuff.”
Joe Bauer: I recommend that you do stuff for other people, if you can get paid to do it, that would be awesome. If you have that skill set, we’ve all got a skill set. Julius has done a podcast on that, that was awesome about figuring out what you can … How’d it go, Julie? How do you say it?
Julie Clark: I don’t know. How do you get start with or what do you …
Joe Bauer: No, figuring out like, yeah, where do you fit in? Figuring out where you fit in and it doesn’t … A lot of people were like, “Why don’t do …” I haven’t done real estate. It’s like, that doesn’t mean that you don’t fit in somewhere that you know, like technically on our team, I don’t do real estate at all either, I do marketing, I do technology, I put all our systems in place so that things work, and Julie does real estate. I always tell people even still sending me deals and I’m like, “You don’t want me to look at this deal, you want to send it over to Julie.”
Joe Bauer: It could be a skillset that you can bring to somebody team that they haven’t even thought about, and that’s how I tell people to get started. Go to put it in the FaceTime, see if you can talk with people a spot that you would fit in and then try and either do some paid hourly work for them or maybe you even have to do some work for free, but that way you can get the experience of how they’re doing and you can figure out what they’re doing first by having the face to face time to see if that’s the type of business that you’d like to model.
Julie Clark: Word, good stuff. I have like a different twist on the answer to where should I start? It’s kind of a new thing that I’ve been thinking about, talking to our friend Albert Billy, who’s a local awesome investor in a mortgage expert on the lending side of things. Yeah, we got hard money, right? We all love our hard money lenders, we love Bare Stone Capital is one of our favorite lenders in town. Everybody who’s getting started should open a hard money file so you have that ready to go. You just asked for Travis Wendell over at Bare Stone Capital and get your file setup because you don’t want to do that. Once you got a deal in front of you, you never know one’s going to drop in your lap. You need to have that set up ahead of time.
Julie Clark: Regardless, you have money or not everybody needs to have a hard money file set up just to, maybe you don’t want to use all your money, maybe it makes sense to use hard money in layers, some of your money on, do a bunch of deals if you have money, and just use your equity in the equity requirement, call that 20%, let’s just say 10% to 20% that you need there.
Julie Clark: But my new way of thinking about how do I get started is, yes, you’re going to assess what you can bring to the table but I also think there’s something interesting that I’ve been thinking about lately, which is you should go and learn about debt. What lane are you in, in regards to how much money you can borrow, right? If you have no credit or bad credit or whatever and you have no money, well then you’re in the hard money category. Where if you get a great deal and you don’t have any borrowing capacity through your personal credit then you’re in the hard money lane and I think we’ve done a podcast on which lane am I in, and you guys should go back.
Julie Clark: I don’t know if you can link that one to this podcast, Joe, so they can reference back to it which lane at my end. That means like how many tools do you have in your toolbox? How much competitive edge do you have in regards to your skill sets as an investor, whether you’re a beginner or intermediate or advanced? We’re all in different lanes and we all should be achieving, working towards trying to get in the fastest lane that we can get in.
Julie Clark: I think when it comes to real estate investing, people are always taught about how to flip a house, how to house hack, multifamily is something you should pursue later. Well, I disagree with all that, and my mind is actually changing. I actually think that everybody no matter what category that you’re in, you should be looking for cashflow properties and those opportunities from the beginning.
Julie Clark: They don’t always require a lot of money, especially if they’re seller financing and things like that involved. But understanding out of the gate, like which lane you’re in as far as you go as a borrower. We’ll, actually dictate which lane you’re in as an investor, and what actions, if you’re in lane one, the starter lane, they’re sort of action steps that I would recommend that you take, if you’re brand new with no money and no credit, but you have a lot of hustle, or maybe you’re a contractor or maybe your credit’s bad and you’re working its way back up.
Julie Clark: There’s still a lane for everybody, everybody can fit in, right? But your ability to borrow money, because even if you use hard money, you’ve got to come up with 10% to 20% for the equity portion, they don’t loan 100%. Okay? So let’s say you have a job at Microsoft, you want to get into real estate investing and you’re either renting a house or you’ve own a house and you’ve not maxed out your borrowing capacity.
Julie Clark: I suggest that you call our friend Albert Billy if you want his contact information, email me at Julieseattleinvestorsclub.com. Why do I love him? Because he’s smart, everything he says is smart and because he knows how to work with investors and all different types of situations and it’s just don’t worry about it. Just call him because I said so, don’t waste your time trying to figure out why, and go get qualified with him and understand what your borrowing capacity is. That will help tell you which lane as an investor that you should focus on right now until you can get to the next lane.
Julie Clark: Can you borrow? If you had a duplex or triplex opportunity come across your path and the cash flow off that property. If you were to take 75% of the cash flow off that property as a number, and then subtract off any loan principal interest taxes and stuff that you have off that number and that number is a positive. It won’t impact your credit and your borrowing ability to buy that property if it cashflow is well enough, right? If it cash flows, where that number is $300 a month in the whole, it doesn’t mean it’s cash flowing in the whole $300. It just means that you need to cover out of your credit $300 a month of a payment.
Julie Clark: Maybe if you have a day job and you’re getting started, you can suck that up easily. You need to know that because you could be getting into situations that you might not realize that or opportunities that you can take on right now. Everybody should keep their day job until they know they can replace it with a monthly cash flow off properties or whatever that more than cover their monthly nut.
Julie Clark: I’m just saying that people are taught to go flip where I think if you would understand what your borrowing capacity is, that it will open your eyes to a whole world that will get you to the top of the mountain faster, which is called buy and hold and cashflow properties. You don’t need to do that last after you’ve learned how to flip and house hack and all these other things, you need to put that in your world now from the beginning.
Julie Clark: If you run across that opportunity or need any more help. Again, Julieseattleinvestorsclub.com, I’m going to actually try and do a podcast topic with Albert, our buddy, on this because him and I have been talking about, it’s people get taught this later rather than upfront, and I want to flip everything upside down and have you guys learned this upfront because it really changes, what you can do out the gate, no matter how much you have, because all that you need is for somebody to tell you they want to sell their property.
Julie Clark: When you’re hanging out with a group of investors and you’re in a local real estate, wherever you are across the country, you have a local real estate investment club. There will be people there that got your back that you can partner with, that you can have help analyze deals. As long as you’re part of a community of like-minded investors, you don’t need to worry about how things work. You literally just need to get the opportunity and to encourage yourself on how great your life could be as an investor, knowing what your borrowing capacity is.
Julie Clark: We’ll set you up for deciding which lane you can jump in first, because I guarantee you it might be a faster lane than you think if you knew the answer to that. It’s sort of a complicated thing what I just said. We’re going to be talking more about it. Like I said, we’ll try to do another podcast on this topic specifically on a deep dive, but if you want to know more about this in the meantime, just contact me to get clarification. Maybe I’ll do a YouTube video or put out a video tips of the day for you guys on that topic because I’m totally excited about flipping things backwards.
Julie Clark: I’m so bored with this, learn how to flip a house stuff. The market’s changing, people are missing opportunities because they’re told to focus on, this mainstream, one way of thinking out the gate which is actually not the smartest way to get started. It’s a very narrow tunnel that you’re put in when you get started as a real estate investor. My suggestion is that you’re on a much bigger highway than you think, you just gotta know which lane that you’re in. Okay, word, peace out, mic drop. I can’t mic drop so I do a clap.
Joe Bauer: Drop it down.
Julie Clark: That’s it. That’s all I got today because Joe, we’re doubling down today, right?
Joe Bauer: Oh yeah, we sure are.
Julie Clark: We sure are because Joe likes to go on vacation and I like to plan like I’m going to go on vacation, and we need to have a bank of these podcasts so we are doubling up today. Recording more than one.
Joe Bauer: Okay, yeah, got it. Batch it out, get it done,
Julie Clark: Get it done, because we have goals and we need to stay focused and grind it through like we’re telling you guys. Our own advice here.
Joe Bauer: Well, if you guys would like to get the show notes for this episode, all you have to do is go to Seattleinvestorsclub.com/42. That’s Seattleinvestorsclub.com/42, and guess what Julie?
Julie Clark: What?
Joe Bauer: We had another five star review on the podcast this week.
Julie Clark: Wow. Who thinks? Five star reviewer? It’s totally helps us out guys.
Joe Bauer: It totally helps us out and not only that, we get super excited about it when we do our Monday morning calls. We definitely do a virtual high five every time that happens. So we would love it if you guys enjoy this podcast, you head over to Seattleinvestorsclub.com/itunes and give us a review that like Julie said, it totally helps us out and …
Julie Clark: It’s a good back scratch, guys. We help you, that helps us. We would love that. Thank you in advance for that.
Joe Bauer: Yup, absolutely. So that’s all I’ve got today. Julie, do you have anything else?
Julie Clark: I don’t. I’m still thirsty and I’ve run out of gummy bears, so I think I’m gonna have to figure out what to do here before our next one.
Joe Bauer: Yeah. Re-up that coffee supply maybe. I think I’ll have some green tea, maybe a little matcha.
Julie Clark: Hey, I think I’m going to take our buddy for a walk, get a little fresh air in the meantime.
Joe Bauer: It sounds like a good plan to me. All right, partner.
Julie Clark: All right, catch you on the backside.