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Happy Independence Day 2020

July 4th 1776 marked the birth of a new nation. This new nation would be different from any that had come before and ultimately would become a model for freedom and prosperity the world over. The new nation was founded on individual liberty, personal responsibility, limited government, private property, and the rule of law. These concepts we almost take for granted had never before been so completely ingrained into the very fabric of a nation. No one knew for sure it would even work. For most of the recorded history of city and nation-states, “individual liberty” was rare and not universally accepted as an “inalienable right.”

The Declaration of Independence was bold – courageous – and life-changing for everyone who signed it or agreed with it. It was the beginning of what would become the United States of America. From its beginning the nation wasn’t perfect. The founders were not perfect. They had their own moral flaws, intellectual blind spots, and philosophical baggage from centuries of governmental and religious oppression. The “yearning to be free” was interpreted differently, even among the founders, and led to raucous and sometimes even violent debates. In order to be one nation, compromises were made. Practices that today are considered brutal or evil were tolerated. It was a different time.

And what of this nation – the United States of America? Our own history is checkered with starts and stops, failures and successes, amazing compassion and generosity, stupendous greed and evil. Both the good and the bad are right there for any observer to see. But I see a nation united around an idea – freedom. I see a nation that while imperfect, allows for the citizenry to debate, discuss, reach agreements or compromises, moving forward, improving by what seems sometimes to be the smallest of increments. But it’s a good country, with a good foundation and millions of good people. We will fight it out among ourselves for our visions about what would make us a better country. If attacked from without, we will turn together as one and vigorously defend our freedoms – including our freedom to argue.

Oppression is the enemy. Repression of competing ideas is the enemy’s more-wicked step brother. As we debate we push the country to improve. The debates (particularly the angry ones) can be tiring, but it is through the free expression of ideas that we improve our great country.

And this is a great country by almost any measure. Imperfect? Sure. Just like me. Just like you. I remember the words of Jesus who said “he that is without sin, let him cast the first stone.” Like you I’m disappointed with a lot of what I’ve seen lately. But today on my nation’s birthday, I’m cutting the country some slack. I’ve committed my life to learning and improving. In fact, if I were going to have a headstone I think the inscription I would want would read, “He was getting better at this…” If you will join me in lifelong learning and self-improvement, perhaps we can also make a tiny difference in improving our country. Let’s better ourselves. And in so doing let’s better our nation. 

Happy Independence Day.

Your friend,
Roger Blankenship

Eighty Five Real Estate Careers

Here are 85 possible career paths you could choose in real estate. I break them down into five categories for you: Hold, Flip, Marketing, Passive, Vendor and then tell you whether this is a part-time or full-time job. Note that many of these have several variations. 

 

Method or Career Path

Category

Time

Buy and Hold

Active Hold

Either

Hybrid fix and Hold

Active Hold

Either

Small Multi-family (duplex through quads)

Active Hold

Either

Small Apartments (5-50 units)

Active Hold

Either

Large Apartments

Active Hold

Full

Small Office

Active Hold

Either

Large Office

Active Hold

Full

Commercial Sub-leasing (Regus, WeWork, etc.)

Active Hold

Full

Virtual Office

Active Hold

Either

Triple Net Leasing – large companies don’t always want to own the real estate.

Active Hold

Full

Manufacturing / Industrial

Active Hold

Full

Retail

Active Hold

Full

Motel / Hotel

Active Hold

Full

Raw Land

Active Hold

Part

Farm Investing

Active Hold

Either

Timber

Active Hold

Either

Water/Mineral/Oil/Gas rights

Active Hold

Either

Mobile Homes

Active Hold

Either

Mobile Home Parks

Active Hold

Either

RV Parks

Active Hold

Either

Vacation Rentals

Active Hold

Either

Billboards

Active Hold

Either

Mini-storage

Active Hold

Either

Business short-stay (AirBnB)

Active Hold

Either

Real Estate Syndication

Active Hold

Either

1031 Exchanges

Active Hold

Either

Bird Dog

Active Resell

Either

Wholesaler

Active Resell

Either

Fix and Flip

Active Resell

Either

New Every 2 Flip strategy

Active Resell

Part

Turn Key Rental sales

Active Resell

Either

Lease Arbitrage

Active Resell

Either

Apartment wholesaler

Active Resell

Either

Fix and Flip Apartments any size

Active Resell

Either

Single family developer

Active Resell

Full

Commercial developer

Active Resell

Full

Non-performing Notes

Active Resell

Either

Performing Notes

Active Resell

Either

New Construction Residential

Active Resell

Full

New Construction Commercial

Active Resell

Full

International investing

Active Resell

Either

Auctions

Sell or Hold

Either

Foreclosure sales

Sell or Hold

Either

Tax Liens

Sell or Hold

Either

Subject-To

Sell or Hold

Either

HUD sales

Sell or Hold

Either

VA sales

Sell or Hold

Either

Bulk packages

Sell or Hold

Either

Joint Ventures

Sell or Hold

Either

Residential Realtor

Marketing

Either

Commercial Realtor

Marketing

Either

Real Estate Marketer

Marketing

Either

Realtor Lead Generation

Marketing

Either

Realtor Lead Management

Marketing

Either

Leveraged Contract for Deed

Active Resell

Either

Residential Mortgage Lender

Marketing

Full

Commercial Mortgage Lender

Marketing

Full

Lending Broker

Marketing

Either

Property Management, Residential

Marketing

Full

Property Management, Commercial

Marketing

Full

Own the Brokerage

Marketing

Either

Retirement Specialist

Marketing

Full

REIT

Passive

Either

Crowd Funding

Passive

Either

Stock in publicly traded RE company

Passive

Either

Cash Lender

Passive

Either

IRA Lender

Passive

Either

Real Estate Private Equity Fund

Passive

Either

Appraiser

Vendor

Full

Home Inspector

Vendor

Full

Insurance Agent

Vendor

Full

Title/Escrow Agent

Vendor

Full

Real Estate Attorney

Vendor

Full

Real Estate Accountant

Vendor

Full

Resident Manager

Vendor

Part

Handyman

Vendor

Either

Contractor

Vendor

Full

Project Manager

Vendor

Full

Real estate photography

Vendor

Either

Consulting / Mentoring

Vendor

Either

Blogging

Vendor

Either

Author

Vendor

Either

REIA owner

Vendor

Either

Trainer / Guru

Vendor

Either

Radio Host! (wait – we were talking about making money…)

Vendor

Either

Find Your Fit in Investing

There are 86 real estate careers, each with dozens of options resulting in hundreds of possible choices. But it can all come down to three categories:
  1. Buy with intent to re-sell.
  2. Buy with intent to create income.
  3. Invest in someone doing 1 or 2. 
How do you know which is for you? 
 
If you have a job or a career that you either love, like, or plan to tolerate, the fix and flip thing might not be for you – unless you have no life and want to devote every minute of your free time to those projects. 
 
If you want to end or replace your career, and the idea of flipping properties appeals to you, you need to decide, at least in the beginning, whether you want to fix and remodel properties or flip in different ways. There are multiple possibilities here and most of it comes down to what you are doing. I started out just buying, fixing, and selling. I didn’t realize there were ways to sell a property or the contract to the property without fixing anything. But there are, both in your backyard and around the country! 
 
If you want to keep your job and career, you are probably looking for income-producing properties. This means you need to think about things like rental houses, small multi-family like duplexes or triplexes, or apartments. But don’t limit yourself. You can buy anything people or companies will rent – office space, manufacturing space, retail, it doesn’t matter what you choose. 
 
What DOES matter is you choose something, master it, stick with it until you have it down before adding other skills or asset types. 
 
Perhaps you want your weekends and off time to spend on yourself and with your family. You just want to put your money somewhere. Great. There are many options for you as well. You can buy shares in a REIT, and real estate mutual fund, invest in a crowd-funding site, or put your money into a private offering, such as the one offered by me. As host of the hit radio show/podcast Flipping America I get the inside scoop on the best places, the most effective techniques, and the highest ROI possibilities in the marketplace. You can join me if you wish. 
 
No matter which option you choose (and you can pick them ALL eventually), the first thing you need to do is educate yourself. Learn as much as you can about your options. Think about your personality – your strengths, your interests and abilities. Then consider how much time you have or want to put into this. Lastly, consider your financial position. This is going to go a long way in opening up or limiting your options. 
 
Right about now you might be thinking about how cool it would be to put all of this on some sort of chart, right? Yeah I thought so, so I did. Just click the link and watch the video about this. 
 
And you can download the presentation by clicking here!
 

All the best! 

Find Your First Deal

People will tell you there are 100 or more things to do to get ready to be a real estate investor. Politely ignore them. There is ONE THING.

Find a deal. That’s it. If you have a deal, you’re in the game. If you don’t, you’re not. Simple as that. Ok, I know there might be some steps to finding a deal, but I don’t want you to lose focus, procrastinate, or suffer from the paralysis of analysis. Find a deal, keep learning, and figure some things out as you go along. FORGET perfection. Just focus on honorable profit. By “honorable” I mean profit with integrity. In the video below I’m going to tell you several ways to start finding deals. The best part about this is, most of them are free – requiring an investing only of your time. You will need to know what a deal really looks like – how to find something someone else will buy at a price that will make you a profit. And it’s best if you have a buyer and basically hunt for deals that fit what they are looking for. But you will figure all of this out.

Do you need business cards?

This is a yes and no question. You do NOT need a fancy logo or embroidered golf shirts. You don’t even need a company name to start with (You will need one soon, but the DEAL is first). So you don’t need business cards in the traditional sense. But you DO need marketing collateral. You need something to put into people’s hands to remind them you’re ready to buy their house and provide a good way for them to contact you. I’m going to help you in this. That’s why you can go to the resources page and order 250 FREE business cards (you just pay shipping) that advertise to the world you are ready to buy their house. Do that after you watch the video. You can take notes, take screen shots or whatever, but you can also download the presentation I use in the video. You’re welcome.

How to Make Money in Real Estate

On show 108 of Flipping America, I documented 85 possible careers in real estate. Since that time we found one more so we are at 86. Each of these has two or three or thirty variations, possibilities, specialty areas, or asset classes. But they call can be categorized into one of three methods of making money in Real Estate
  1. Buy with the intent to add value and re-sell. This is the FLIP model.
  2. Buy with the intent to create rental income. This is the HOLD model.
  3. Invest in the activities of someone doing 1 or 2. This is the PASSIVE model.
 
Let’s illustrate these possibilities with three individuals. 
 
Meet Fred Flip. If you want to be like him you are going to be constantly shopping – shopping for that next deal. This is a business that requires day to day management, supervision, and care. (Notice he’s holding a house in his hand, about to put into his shopping basket. It’s a little surprising how many people don’t see this.)
 
Here’s Rhonda Rent. She buys a house or two each year, puts management into place and simply walks to the mailbox each month to get her check. There are always issues and problems of course, but they are a minor time drain compared to Fred Flip’s busy schedule. Of course Fred makes a lot more money than Rhonda — at least at first. 
 
Lastly here’s Pat Passive. He already has some money and he’s busy doing other stuff important to him, so he just wants to earn a nice return on his money. He can get involved with either Fred or Rhonda or both and he can do that with debt or equity or a combination of both. It’s completely up to how they negotiate the situation.  
 
This business is Fred’s job. For Rhonda it’s a part-time side gig. To Pat, this is just one more investment. 
 
Here’s something interesting. Fred and Rhonda can invest in any asset class – single family, multi-family, Office, Store-front, industrial, commercial land, short term, or storage. You can flip any of those and you can hold any of those. They also are not limited by time frame. And these properties can be local, across the country or even in another country. There are dozens of deal structures and funding structures available to them and through the combination of all these factors, there are literally thousands of possibilities. Pat can invest in any of these by finding the right operators with his preferred investment strategy. (You want to be Pat.)
 
Let’s compare these three methods of making money with a little chart. First in terms of Activity level. The Flip level will require High Activity – big time investment on your part. The HOLD strategy will require less time, but it will still take SOME. You will take time to find, fix, rent and manage those properties. The PASSIVE strategy requires the least amount of time, but it’s still not NO time. You have to evaluate the investment, which will take a little bit of time. 
 
And how do you actually make your income? Where does the money come from? If you are flipping it comes from your Activity. If you are a landlord, it comes from the property. And if you are a Passive investor your income comes from your money. 
 
As you are thinking about this you probably should consider the type of income you will be making and plan now to consult with a tax professional about the implications. As a Flip investor your income will be earned, although there are structures you can set up to your advantage. Hold investors receive their income as rents, which are taxed differently and there are tax advantages to holding property as well. Passive investors receive Dividend or Interest income – sometimes both. Please plan to speak with your tax professional as soon as possible.
 
Lastly let’s consider the skills. Flip investors will focus on construction. The Hold strategy requires management skills. And as a passive investor your primary skill will be analysis. 
 
So I’ve introduced you to Fred, Rhonda and Pat. Fred has a business and a job. It may not be that time consuming and if done well, it should afford Fred plenty of time for leisure, family, and hobbies. Rhonda has time also. Whatever her schedule may have been like before she acquired income-producing properties, it has not be greatly impacted by them. And now she has a bit more financial freedom for things like vacations. Rhonda is on her way to financial freedom – her non-earned income pays for her entire lifestyle. Pat may be a bit further down the road to Financial freedom. He’s on his way to wealth building and legacy. He has the time now while enjoying the fruit of both his labor and solid investing strategy to think about the positive impact he could have in the world. So which of these investing strategies is for you?
 
It might be all of the above. But it probably should at least include Passive investing. Here’s the cool thing about this site and the resources available to you. No matter what you decide, we are here to help you on this journey. Whether you want to flip, own rentals, or make good returns safely through real estate, we can help and we have opportunities for you. 
 
Your answer is going to depend on YOU. 
 
Your life vision – how do you picture things a year or two or ten. Not just in terms of what you have but the type of person you want to BE or the things that you DO. Where you live and how you spend your days. We have a mini-course on this coming soon.
 
Your financial goals. When you imagine your future lifestyle, how much will it cost? You will want to translate those financial goals into actionable steps. Click here for video on how to do this.
 
Your knowledge and abilities. If you have a vision and some goals but lack the knowledge you need, we have an abundance of information and resources available to you. Click here for training resources.
 
Lastly, your willingness. This one is pretty much up to you. Only YOU can decide to pursue this and only YOU can take the steps to get there. The information, guidance, and mentoring you need is readily available. But the one key factor in making money in real estate is YOU. (There’s nothing to click here. Instead, take your index finger that you would use to click and place it on your forehead between your eyes. Now say this: “It’s up to me.” Repeat this activity as often as necessary.
 
To take the next step, click on any of the links in this post and get started.