How Vegas Flipped the Switch

I retired.  Well, I sold my third company and hadn’t started a new one.  I didn’t have enough money to live out the rest of my life, but I did have enough to take a break and think about what should be next.

I had sold the last of my daycare centers, years earlier, then my half of a training business, and finally the real estate development company (that I was just a minor shareholder in).  What would be next?  What could I do that would be fun, lucrative & play to my strengths & skills?

How about real estate on a smaller scale.  Not buying raw land, getting financing set up, bringing in utilities, building roads, and everything else that is part of developing raw land into a successful master planned community on 800 acres of land.  That was a lot.  I had acquired skills while working on that project, but to be honest, it was not a great fit.  Buying real estate did seem to be, though.

So, I approached my former general partner, who was also my mother, and suggested that we look into different types of real estate investing.  We went to classes, and workshops, read books, and watched TV shows.  One workshop really delivered the goods.  It was put on by Real Estate Education Group, which is associated with Amie & Scott Yancey, of Flipping Vegas.

We went through their entire series and learned a tremendous amount, and stayed engaged because they have such great presenters.  However, what was more important was that we IMPLEMENTED what they taught.  We went out and looked at hundreds of properties after having looked at thousands online.  We made offers.  We bought things.  One of the things we bought was a house to flip.

IMG_1789Flipping on TV is amazing.  Scott & Amie Yancey for Flipping Vegas, who I think of as my mentors,  are very clear that reality is quite different.  They have missteps along the way, the just have the advantage of the editing bay.  If their gamble didn’t work out…they can cut that footage out.  They actually don’t flip most of the houses they buy.  They fix them up and rent them.  But “Buy & Hold Vegas” isn’t as sexy as “Flipping Vegas.”

What we learned from the Yanceys and their training team, was invaluable in our process.  Actually in this whole new real estate venture.  Their training helped us to know what to look for in a property, where to look for them, how to run the numbers (which has led us to pass on some deals that seemed great, before the numbers), and gave us confidence.  IMG_0077

I have gone to their introductory event 3 times, getting new inspiration and tips each time.  I have gone to Vegas twice and plan to go again this winter.  On one of the trips to the Buying Summit in Vegas, one of our properties was recognized for it’s excellence.

Vegas flipped us into real estate investors who DO!  If you get a chance to go to one of their events, either in your area all the way up to the Summit in Vegas, I encourage you to go.  Learn from experts.  All of the staff I met with have real life experience.  They have been there.  They invest in real estate as their primary business.  They teach because they are so darned excited about it that they can’t help but talk about it.  If they are going to talk about it anyway, they might as well get paid as instructors, coaches and speakers.  I get it.  I am totally psyched about it too!

Making money in real estate can be hard, but it is easier with the Yancey’s behind you.

 

 

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“I found a house”

I hadn’t even finished saying hello, when my mom eagerly announced, ” I found a house.” We had been looking for a while and had offered on a few, but it seemed like this was different.

It turns out it was different.  A lot different.  This house was initially built in 1900 and was on a bit of land between Georgetown and Jarrell, Texas.  If you aren’t from central Texas, don’t worry about not knowing where those towns are, a good percentage of those from the area aren’t really sure where they are either.  We do know that Jarrell had a tornado though- back in the 90’s.  It was an old farm house that had been “updated” at least twice.

Mom had found the property on an auction site, Hubzu.  Take a minute to look at the pictures.  They don’t do it justice.  You can’t see the tarps held in place with old tires and rope on the roof. IMG_4990Those photos also don’t show the damage done to the side from climbing vines.  IMG_4985On the other hand, fail to convey the charm of the house.  It had great bones.

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It had out buildings.

It had potential.  And even better it also had a low opening bid and a large potential after repair value (ARV).  This could be a good property to learn how to do a residential rehab, a flip.

Mom went out and walked the property before she called me.  She had seen the potential and she really thought we should bid on it.  I was not so sure.  The pictures on the website did not convince me, but the potential up-side did get me to drive out there and look.  I saw the charm, the history and the wind mill.  I was in for the bidding.