All Forum Posts by: Frank Godfrey

Hey Rosalie,

1st step in anything is to know first why you are doing what you are doing?  Hobby, income replacement, retirement, knock down some debt...whatever the answer...then make that a dollar amount.

As far as investing, ask yourself.  Am I looking to build a portfolio for cashflow or am I looking to build capital?  

2nd step is to link up with a local expert that can guide you through the process of determining your goal and creating an action plan.  

Get familiar with homes , retail and investments, pricing for labor, material, transactions and money.  Know your tolerance for working with contractors, tenants and all aspects of the game called investing.   

Create a winning strategy based on your goal and find partners to make it all easier.  Like a mentor that is already doing it.  They will help your have more wins and limit the learning curve.

Chalk everything up as educational.  Just do your best not to make the educational process too costly.

Final note and most important - Don't pay tens of thousands of dollars to anyone stating they can teach your everything. That will be the most expensive lesson you could ever learn.

Agent/Investor/Coach

Happy New Year all.

Looking to hear some success stories out of this feed.

Did you locate a group to help you reach your 2022 goals?

Well, in 2022, I assisted in leading a very large network. From this network many JV's and deals were completed and there are several in motion moving into this new year.

I would love to hear your 2023 goals and assist your where I can.

This is the market shift where wealth is loss and gained.  Which side of the scale will your choose?

Here are a few questions to ask yourself to get out of analysis paralysis.
I want to apologize for this next assumption, you did mention new investor so, I am going to assume you have done no deals.

First question - What is your why? The most important question you can ever ask yourself. This is asking yourself, why am I choosing to invest? Fun hobby, cash, cashflow, retirement, freedom? What is your reason for investing? Know this!

Second Question - How much Cash do you have to invest? Based on your cash on hand, this will limit where, how and what. Where you can invest, how you can invest and what type of investment you can do. Answering this one will assist you in narrowing down your target areas and type of investing you can do without partners.

Third Question - What is your tolerance to risk assessment? Your personal tolerance to risk.  This will be learned if you do not yet know it.  

Fourth question - Since you asked.  What is your definition of "Good"? What does that mean to you? Or are you looking for others definition or assessment of what is a Good palace they have identified for them to invest?

 Once you get your answers to those questions the how, what and where becomes a little easier to identify. 

Then you need to find the Who.  Who is going to assist me in reaching my Why.  Who do I know that I can shadow or partner with that's doing what I want to do.  Get into relationship and run with them and learn all you can.

So, as you can see, once you know you, then others can directly assist you in answering your question.

This question is often on the board and no answer is right for everyone.  Each of us have our own mix of answers, resulting in our own way to use the investing vehicle to reach our Why.

Where will the investing vehicle take you?

@Jade Jamison I personally would never suggest ever using all of your savings to invest.  Investing is not as clean cut as they make it look on HGTV.  There are always over runs.  Always something else.  Always!  

My suggestion is to look into the programs that will allow you to use less of your money to invest.  There are plenty for 1st time home buyers in MD and especially in Prince George's County.  

Know, you could qualify for a construction loan and only need 3.5% if the terms are negotiated well in your favor.  This would include the rehab costs so money spent to close the deal gets you to the end of the finished product ready for market.

DM for details on tapping into available programs.

Note, programs will reduce your buying power.  You will not have the sexiest terms to a seller.  Unless you are buying strictly as-is.  Finding the perfect home will take some effort by you and your agent.

I close one today that is a very similar situation, however, they have 35k to invest in the rehab instead of getting rehab financing from FHA of Fannie Mae.

Use a buying program for your first home.  It is the only first home so use all that is available to you.

@Turok Tarango

This is an easy task for a local expert agent.  Where ever you are, line yourself up with an investor friendly agent and ask them monthly.  What is the current supply and demand and which direction is it trending?

I provide this data within 5 minutes of the question, because as a licensed Agent, we have access to last months historical data.  If you have been tracking it, you can easily see the trend line..

I am not aware of any consumer app that will supply this amount of hyper local data.

Currently in my area - Prince George's county MD - Absolutely Mind blowing that all this is occurring during a Pandemic.  #TransferOfWealth - Get in the game now!

@Nick Pisano Missed this post, however, a few B to B+ neighborhoods where omitted.

A few good ones in your B to B+ were mentioned, however, there are parts in each that could be considered higher than B+, ie. Cheverly, College Park and Hyattsville. 

Quick suggestion from a seasoned Investor/Realtor.  If you plan to rent this in the future, I would stay 3br's plus.  The demand for 2 br rentals is much less that 3br's and 4br units, in MD.  With that, you currently have over 70 homes to choose from currently on the market.  Some being sold as is and others totally renovated.  These vary greatly in size.  B to B plus cities would also include Lanham, New Carrolton, Greenbelt, Adelphi, Glenarden, Parts of Landover, Parts of Capitol Heights, Riverdale and Bladensburg.  Note, you have many cities to choose from.  There are parts of Hyattsville that would be considered A to A plus and some B and B plus areas.  Hyattsville is Huge and there are fewer deals than usual to be found in the historic side.  Let me know if I can be of any assistance moving forward.  This is my play ground.  

@Marcel Sunday

1. 1. Have a written Goal.  Identify, WHY, that goal is important to you.
2. 2. Have a written Business Plan designed to reach that goal.
3. 3. Have a schedule designed to hit your goal.
4. 4. Identify the 1 thing you will get better at every day and get it in your schedule.
5. 5. Identify the 1 thing you do every day to hit your goal and get it in your schedule.
6. 6. Get an accountability partner, like another agent in or outside your office to hold you accountable to your goal.
7. 7. Line yourself up with a great Agent to mentor you, your mindset and actions around your goals.  
8. 8. Get a coach to assist you in your personal and business mindset, actions and goals.
9. 9. Have a database - Your business daily is to add people to it and communicate with them on a consistent basis.
10. 10. Get Leverage as fast as you can so you can focus on first things only!  80/20 Rule.
    
11. 11. Know who you are by completing a couple assessment tests like the DISC and KPA.  Know your natural you will assist you in communicating properly with others and help you understand why you do what you do.
12. 12 - infinity. Get into action as fast as you can, and as early everyday as you can.  This action should be in the lead generation column.  Who are you calling and what are you saying and what value are you adding?

Not necessarily in that order, however, all of this, top agents do on a consistent basis.

@Jessica Bobo Great question we discuss all the time.

1st, that many investors aren't aware that Prince George's county as a whole has some of the best margins anywhere around the beltway.  Not to mention some of the best perks.  Most metro stops outside of DC and easiest commute to and from DC.  2nd, many of those that do know the above are playing it as safe as possible by cherry picking in the same areas that have already proven to make sense, ie. College Park, Lanham, New Carrolton, Greenbelt, Bowie, Laurel, Upper Marlboro and Clinton, not even considering to look at the Hills and the Heights.  The money is in these locations.  Lowest acquisition points and good rental demand and values.  So, whether you are looking to buy and hold or Flip, the bigger wins are in these locations. 3rd, Most people aren't aware that half of the National Harbor sit in Oxon Hill.  Most know it as only The National Harbor or as the National Harbor in Maryland or Ft. Washington.  The National Harbor is a major anchor, a ship. When you see ships move get in their wake.  That ship anchored just across the river from NoVa and DC in Prince George's County in Ft. Washington and Oxon Hill.  4th, It's history.  If you are aware of all of the above, many choose not to invest in this and other areas due to what they use to know about the location.  The area is stigmatized, however, the wait and see or avoid until they say it's different approaches will keep you on the side line missing incredible appreciation and cashflow.

#JustMy2Cents

@Bianca Sackey

I am that Savvy Investor Friendly Realtor ready when you are ready.  Let me know when you would like to deep dive to uncover your winning investment strategy.  

I house hacked my first few deals and that was fun, however, not for everyone.

Feel free to call me directly or schedule a one on one investor discussion

Great thread and discussion.  Love the Responses by @Tara S. and @Dennis Soto

Like Tara, my main reason for getting my license, 20 years ago, was for access to possible investment properties and to gain a better understanding of what happens behind the curtain with agents, brokers and banks they work with. That lead me to way more deals and relationships leading to more JV's and opportunities. When not leading with a scarcity mindset, you begin to see the value of others moving mountains for you. What's that mean? While you are counting 1-6% a deal, an investor friendly Realtor, on your team will find you more deals and negotiate those deals to a place that that 1%-6% should no longer be in question. A good agent will make you money with saving you time, negotiating better terms and market your renovated product. In my market I get an average 4% more than then market on well renovated properties. Don't trip over dollars counting pennies.

Not mentioned is this thread is the added liability you have as a license agent.  Mr. Investor with license, you now have a code of ethics that guide your every move.  Although, most have this code built in, know, there are times you will have to slow down and question your fiduciary responsibility to the client and what the state will deem you should have done as a licensee of the state.  Licensees first are to protect the consumer.  Licensed investors must act with more integrity and disclose disclose disclose.  Note, if you do not, there is such thing as Real Estate Jail.  I know many, now unlicensed Investors who got more than just a slap on the wrist.

As for the Broker, if you do choose to get your license, you should vet the broker and let them know your intensions.  All brokerages are not created the same even when under the same brand.  My office is one of the few Keller Williams in the nation with an investor division.  As Co-Chair, I have spelled out in detail how to invest and work with investors with out losing your your license and show you how to write your deals so not to give away all your profit to broker fees.  

What I didn't know when I got my license that I now know.  If you choose to actually do real estate at a high level, you can personally fund your investment business and reach your investment goals much quicker.