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It’s the formula that makes reality television — conflict, drama, frustration, triumph, and major pay days! And it’s the strategy behind wholesaling and fix ‘n’ flipping! On today’s episode, Matt welcomes Kristi Cirtwill, a fix and flipping pro who is spilling the secrets of her real estate success.

 

Recommended Resources:

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  • Need time? Work on your business rather than in your business by leveraging the time of others.  Access free information and find real estate-trained virtual assistants to help you free up your time.  Learn more at VAsForRealEstate.com.
  • Need training? The ultimate training environment for real estate investors: Version 3.0 of The Epic Pro Academy!  New look, new lessons & new content – we’ve got everything you need to know to get your first paycheck!
  • Need someone to do it all for you? If you’re an Accredited Investor, you can diversify your portfolio by hitching your wagon to our train and share in the profits. Go to EpicWealthFund.com to download the executive summary.

 

 

 

Podcast Transcript:
(Voice Over):  Epic Real Estate Investing Podcast Episode 21.  You’re about to meet a man that can show you how he took control of his life and financial future and how you can do the same.  He’s never been on TV.  He’s not a millionaire.  He doesn’t know Donald Trump.  He is a full time real estate investor, newly discovered author, and family man.  He does not report to a boss.

He creates his own schedule and takes his family on a few vacations every year.  He got started investing in real estate with almost no money and a really crummy credit score.  And he’s going to show you exactly how he did it and how he continues to do it.  You will have to work. 

You will have to be responsible.  However, laying the beach, sipping fruity drinks is a reasonable goal.  Without further delay, your guru.  Sorry.  Your guide to a better life, the real estate investor, Matt Theriault.

Matt Theriault:  Hello.  Greetings from The Epic Real Estate Investing Podcast.  The podcast that will show you how to build wealth through creative real estate investing.

That’s what we will discuss today and for a long time to come so you’ll have the option to realistically retire in the next 10 years or less.  And enjoy the good life while you’re still young enough to do so.  How does that sound?

My name is Matt Theriault, author, full time real estate investor and family man.  Now if this is your first time listening to the show.  You want to do two things.  First, go back and listen to Episode 1 for the ground rules of the show.  Two, download the Free Real Estate Investing Course – How to Do Deals, No Money Required.  You can get at FreeRealEstateInvestingcourse.com.

It’s a step-by-step course of which I reveal everything that I do, everything that I say, everything that I use including the documents and contracts.  Everything that you are going to need to invest in real estate using no money or credit.  And that’s yours for free at freerealestateinvestingcourse.com.

I got a few things that I want to share I haven’t visited iTunes in a while. I noticed the few reviews of the show so thank you.  Thank you for your reviews.  Thank you to all of you that have stopped by to leave your comments. I was pleased to see that all of the reviews were 5-star reviews.

If you didn’t know, that really helps the show in iTunes and iTunes search system.  Meaning the more good reviews, the easier it is for others to find the show.  Thank you for that.

So I want to read some of those reviews just to acknowledge those people who took the time to do that.  Some of the reviews are really, really cool.  This one comes from FretFudger, worth your time.  5-stars.  Matt holds nothing back and shares everything he knows about real estate investing subscribe and enjoy.  Thank you FretFudger.  I thank you for that comment.

Next one says by CfootBallFan, excellent.  5-star review.  Very straightforward, honest approach.  Highly recommended. Love it.  Thank you.

This one 5-star review another comes from RHLock.  It says I made $6500 on my first deal.  I want to thank Matt Theriault and Sean Terry.  I downloaded the podcast on my iPhone. I wanted something to listen to while driving. The material motivated me.  I told a few people that I was thinking about flipping houses. A family member told me about a house that’s for sale that’s cheap.

Long story short.  I got it under contract. I put up some sale signs because I didn’t have my investor’s list started.  The day after I had a buyer and a contract to sell.  The whole process took about 21 days form start to finish.

Title search took about 10 days.  After closing, I took home just under $6500. I was nervous the whole time. I wasn’t sure of myself the whole time but I stayed with it. I realized everything kind of fell on my lap. I also realized that from the podcast alone I had enough knowledge to put this thing together and recognize the deal. It worked for me. I am $6500 richer.  Thanks, Matt.

Well RHLock, you are welcome.  Awesome story.  Thanks for sharing that with me.  Thank you for those reviews.  Keep them coming. That was awesome.  Great to hear especially if you’re putting stuff to work and making money at it.  So thank you.

Another thing, you know, the Epic Pro Academy is coming along really nicely.  Not as fast as I had hoped. I’ve obviously missed my November 15th deadline but it’s coming.  I’m filling it with a ton of information.

I want to make sure that I don’t miss anything particularly anything that might cost an opportunity or might cost you some money so I’m making sure I’m getting all my bases covered and make sure you have all the information that you need to succeed at this real estate investing game.

Also I have super charge the Epic Analyser.  You know, for those of you downloaded the Free Real Estate Investing course, you know what that is.  You probably also know that the Epic analyser has its limits.  Although it does serve its purpose, its purpose is to evaluate the property to basically reveal whether you have a deal or not in just a matter of seconds.

You know, putting this whole Academy together has been a little more of a challenge than I had expected.  The challenge comes from correlating my team of professionals of which are putting this together.  We’re putting this together collectively.  Nonetheless, it’s coming along really nicely and should be complete any day now.

I’ll certainly keep you up to date and let you know when you can check it out.  With regard to those reviews, if you got some reviews please send them in. I could certainly use them so here’s a deal. I’m just thinking this on the top of my head if you put some of this information into use and you’ve experienced some results.

Go ahead and send me that review. If you put it in a video format, I will reward for that. I will give access to the Epic Pro Academy for free.  You become a free member that will be my gesture of appreciation and gratitude for you helping me out with that.

This testimony I just found on iTunes, I mean what a shocker to see someone made $6500 just out of the blue and you know, I sit here in my office and I record these podcasts. Sometimes I really have no idea where this information lands and help people put it to use and let you guys tell me about it. I really appreciate that. Thank you.

All right then.  Continuing on with our series of interviews from real estate investors, real real estate investors doing deals in today’s market. I have friend and an associate on the line today of which I’ve known for a few years.

She hails from Canada, the country just North of United States.  She now resides here in Southern California.  She’s one of the more respected wholesalers and fix and flippers in the area with several deals under her belt as well as several deals, active deals today at different stages of development.

The one thing that I really respect about her is that I know how persistent you have to be to make real estate investing work and make it work successfully and profitably.  Her being from another country, she’s had to jump quite a few more hoops than those who are American citizens just to complete some of the more simple transactions so I’ve got a lot of respect for doing that. I mean it takes a lot of tenacity and spirit and persistence. So on the phone today, I’m joined by Kristi Cirtwill.  Kristi, welcome to the show.

Kristi:  Thanks, Matt.

Matt:  Glad that you’re here.  So as we get started, I just wanted to, I guess I get a little bit of your background and learn basically how did you get started investing in real estate and what was your initial attraction to real estate?

Kristi:  I sold my first property when I was in my early 20s and I honestly went into a little bit without any knowledge whatsoever. I just know that I wanted to own a house instead of paying a rent so I ended up renting out it to boarders and kind of realizing quickly that I can get my mortgage pretty much covered.

I loved the idea of that and have somebody else pay off my mortgage and cash flow so a couple of other properties that was maybe 3 years ago or so that I kind of went in full time into flipping and rehabbing.

So now I do that full time for a living and so eventually again in the bottom note I flip that money back into more rental property.

Matt:  Uh-huh.  Got it.  So I know you’re flipping property and eventually going to move on to the holding.  What is your primary acquisition strategy?  Where do you find most of your deals?

Kristi:  A couple of different ways but basically they are all coming off the MLS but there are also a couple of different ways through realtors that you have relationships with in different markets and also through wholesalers.  It’s more of a bird-dog that they are scouting the market for as well.

The on time we actually get stuff brought to us privately so it hasn’t made to the MLS yet but brought to us by a realtor that we made a relationship with.  They just haven’t gone into the MLS yet so we get those properties privately.

Matt:  Got it.  But your primary source is the Multiple Listing Service.  Right?

Kristi:  Yeah.

Matt:  Your main exit strategy at the moment is flipping the property.  Correct?

Kristi:  Yes.  I’m not currently buying any to hold.  I’m flipping them all.

Matt:  Got it.  So my question is you know the Multiple Listing Service is I kind of stayed away from that particularly if I was looking for a fix and flip because it’s kind of tough to find equity.  How are you able to do it?

Kristi:  Usually, we are just taking opportunities that somebody has been. Part of it has been we narrowed it down to just a few different cities that we are working now.  I think that it s the key because before we were trying to save more Brawley and Orange County.

That really didn’t do us any favour because I think what we ended up with what was happening through our deals is that we didn’t recognize them as deals.

So now we narrowed it down on just a few different cities.  When something comes up in the MLS, we didn’t recognize it as a deal.  We know those areas a lot better so that’s a large part of how we are finding stuff.

Matt: Got it. So knowing your market is a biggie.

Kristi:  Yup.

Matt:  Got it.  I just have to imagine though that you probably write a lot of offers. Is that correct?

Kristi:  Yep.  (laughing)

Matt:  You laugh because that’s really accurate or kind of accurate?

Kristi:  Uhmm, in the beginning I’ll tell you how I got started, I wrote 250 offers to get one deal.

Matt:  Uh-hmm.

Kristi:  Now obviously that has gone way down because I have relationships built.  It’s a little easier to buy deals but yeah in the beginning that was quite a few offers.

It’s just until you get the hang of even to write the offers that’s just what you kind of have to go through.  So but now on average, we have when I say we it’s myself and a couple of other wholesalers that are probably getting 3 to 5 offers a day.

Matt:  3 to 5 a day?

Kristi:  Yeah.

Matt:  So that would be say 15 a week.  How many deals do you get accepted a week?

Kristi:  Well we kind of based on a yearly goal.  Our goal this year is to buy 20 houses.  So far we are at 17 houses.

Matt:  Nice.

Kristi:  So if you kind of work out on the map.  It is what it is.

Matt:  Got it.  So you’re probably on track to do so I guess you’re doing two a month.

Kristi:  Yeah.

Matt:  Got it.  That’s not bad. Everyone got their own strategy and doing two a month.  That’s awesome.

Kristi:  Yeah.

Matt:  Do you do any type of marketing?

Kristi:  No. I did a little bit of direct mail but hardly enough to even say that’s one acquisition strategy so not really.  I mean I would send in a postcard but it’s not really something that I do on a consistent basis.

Matt:  Got it.  Okay.  What are some of your favourite resources that you use to whether generate leads or find leads or you know to run your analysis and do your do diligence.  Do you have your online resources?

Kristi:  No.  We just use the MLS to really do everything.  The only other website that we go to is Red Bin, which is just that of from MLS as the other real estate site.  But other than that is really 90% we rely on the MLS.  We say if you don’t have it, go get it.

Matt:  Right.

Kristi:  You know, get access to it.

Matt:  Right.  You don’t really need anything else if you got that.  Absolutely.

Kristi:  Yep.

Matt: So the big question from the show and from the audience is where do you find the money for your deals?

Kristi:  Well we were all saying when the deal appears the money will appear.  That is true.  I did have some of my own capital to start.  When I partnered or business partnered full time, he also brought the capital to the table.

But obviously, you run out of that pretty quick, we are in a market where we are purchasing an average $250,000 to $350,000 houses. So it doesn’t take too long to buy one or two at all.

Your money is pretty much gone so we started just letting in the world know what it is we do.  Surprisingly all these people, private individuals with money showed an interest earning 12% to 15%. Those are the people we work with now and put their money into the trustee position on the property and secure the property.

That’s we do so we also have used our money and cash so it’s not just basically other people’s money 10% to 12% but you’re also make something out off that. When doing that, it’s a lot quicker to do the deals.

Matt:  Got it. So you said right in the beginning, you know, when the deal appears so does the money, tell me more about that.  What’s your experience is specifically when you do have a deal and you have money sources, how do you ask for it and how do you present opportunities to your money sources?

Kristi:  Well, I got a little bit but a large part of it is just seeing else and having people know what you do for a living.  I mean letting people know you’re in the business of building houses.  The money that people needs us as much as we need them because they are actually sitting there and it’s not good if we don’t earn any returns on it so they don’t want to do that hands-on stuff.  They’re already been there, done that.

We’re looking for people who wouldn’t mind taking me as a girl and they could just hand their money over and earn something like a return on it.

So it’s just really staying involved with the real estate investing clubs just like keeping updated in the community.  When people know that that’s what you do for business, you almost kind of start to get phone calls from people.  You know, after a while you just get calls so it’s just having a kind of presence.  You mentioned something about online, I would say that in terms of building your credibility is building your name in the business.

Facebook has been a tool to help me do that.  Again it’s not about pitching anything.  You’re not going in there to ask money, it’s just about posting before and after pictures of the property.  It goes a long way to somebody to show that you are into it.

Matt:  Got it.  So you use Facebook as a platform to essentially show off your success and convey your competence.

Kristi:  Yeah.  Even if you are just getting started, you just promote one property like crazy.  You show people what you are doing, the money, people would want to work with you.

Matt:  Right.  Exactly. So tell me, what is a typical day for Kristi look like?

Kristi:  Well, today my day started at 530AM (laughing).  I got a job site.  We are doing a final walk through of a property that hopefully would get out in a couple of days.  A trip to the Home Depot, hopefully I won’t be doing this running around eventually as much as I do now but for now it’s part of the project management.

The other part of the day is just going to the deals, checking with the wholesalers, getting a few bids of the jobs that we are starting.  Some investor relations so basically we have properties on the go so we want to make sure to keep in contact with our investors and let them know how the progress is going and keep in touch with them, and you know, of course, networking.

Matt:  Right.

Kristi:  That’s my typical day, a long day.

Matt:  Right.  We all experience the same thing.  It seems we all do the exact same stuff.  How is your approach to investing changed since you got started?

Kristi:  I would say is that you never stop learning.  In the beginning, I would say is different because I have two deals in my first year.  Now the funny deal is one year, you have to put some kind of system in place for you to go quickly in business.

Part of it is just developing the system, which you know; you don’t need to develop the system if you don’t have any properties going.  Now I just kind of figure out how to do it so from that point of change but also from a market stand point of change and it’s still changing.

So the key is also to stay on top with what’s going on in the marketplace.  Are we going up anytime real soon or to keep buying and just the other variety of other things that could affect the real estate market.

You really have to keep an eye on them.  I could end up setting goals for next year that I may not be because I have to instantly change my goals because of something that happened in the market, which is not within my control.

So it’s like you’re almost ready there with goals that you’re depending on then changes happened that you know you don’t really have a stand.

Matt:  But it’s perfectly in my next question is in what ways do you stay up to date with the market and what type of things or indicators do you look for?

Kristi:  I stay in touch with the different economists. I just finished reading the book “The After Shock.”  Anything that has to do with real estate related. It could be economy-related.  It could be budget-related.

It could be job loss or job gain or anything to do with that.  I’ll be trying to read it and learn it for my opinion on how that could end up in that thing in the real estate market.

Obviously, I want to do is to buy house and live the values defined like stated in where it’s dropping so fast that your profits are immediately wiped out.  I think it’s a really good strategy to do.  It’s just matter of getting in and getting out really quickly.

Matt:  Right.  Right.  Based on your experience and what you know now based on your current knowledge, where do you think the current market is headed?

Kristi:  Down. (laughing)  Sorry to be killer here but I don’t think we’re going up anytime soon.  I think we will be at the bottom for a long time but there is some predictions but we will experience something like we did in 2008 again.

Matt:  Really?

Kristi:  Again I’m learning as I go, I’ve been speaking out to people who has been right in the math.  You know, his credibility in my eyes.  But I think you can get riverside for land vale.  Sure.  Will they go down much more than they have?  Probably not if you’re buying at land value.

However there are still some areas that even I’m flipping houses in where it doesn’t even make sense.  It’s two-bedroom, one bathroom selling for half a million dollars.  So put that $200,000 so that’s what other people are saying so I’m being cautious of it.

Like I say, we’re like bandaging that wrists is just getting in and getting out quickly.  It’s not going to drop in a matter of a month.  So yeah, I see this kind of sad for the US but in a way I see some more opportunity ahead.

Matt:  Right.

Kristi: So.

Matt:  Right.  You’re just falling right in my next questions perfectly. When so if you think we’re going some more and according to you, we might be going down significantly and just for everyone that’s listening.  You are in Southern California so you’re basing that information in Southern California market.  Right?

Kristi:  Right.

Matt:  Yeah.  So what types of things are you doing?  Are you adopting some strategy?  Or you just stock some money away?  Are you preparing this with what you think where the market is headed?

Kristi:  I’m trying to become more liberate so right now I have too many deals going.  I just need, you know, sell from lowest.  We seem to just have a period where we pick up lot of properties.  Anyway, we are quickly turning all these getting them out of the door.

I’m like just trying to keep more cash on the side and not get through overextended in any way.  I think the key is to have some cash when the time is right.  You know, just personal pacing and just to be able to buy good more good deals.

But I think it’s still a good way to go.  If you get in and get out, I think the one way I do now is not buy any more six-month project or longer.  I would just go back to one that I know and do really well like the four-week rehab, to kind of give note and have it relisted.

I think that’s really kind of faith going.  For me, anyway.

Matt:  Get it. I know you for a while.  We met right about the time when both of us got started.  You can certainly always tell that somebody is out there in the court and playing the game. I certainly know that you are.

I can tell that you are educated and experienced.  How much have you actually invested in your real estate education?  How much did you feel you needed ahead of time before you actually got the courage and confidence to get started?

Kristi:  I would say, hmm, I’m not sure.  I haven’t really added them up throughout the years.  Definitely, tens of thousands.  I would say it’s not a whole lot of money to $25,000 mark but when you add up how that figure could pay me back over time. I don’t know if I could have done it any other way.

Matt:  Right.

Kristi:  You know, why would you go in to any profession without having had some kind of formal training?  So you know, I found the person that makes sense to me.  Honestly it narrows down to what it is that I want to do.

So it took a few different classes to actually think, you know does this make sense to me?  So I’m not going to pursue that.  It took a little while.

After a little while, you seem to realize what resources do you have and what strategy would they have fit with. That’s kind of what you end up doing.

Matt:  Right.  Do you continue to invest in your education?

Kristi:  Oh yes.  Definitely.

Matt:  In what ways?

Kristi:  Just staying in touch with the real estate investing world, finding out what teachers are coming to town, picking additional classes. I try to read a lot.  I read a variety of topics not just real estate, personal development that has a lot to do with running your own business.  Believe it or not.

It’s like economy stuff. I try to stay on top of that.  Just a lot of reading, a lot of social media, a lot, I try to make friends with people who are making more deals than I am doing. Obviously, they’re doing something right.  They’re still on business.  You know you can learn from those people.

Matt:  Nice.  Nice.  What is something you now know that you wish you have known when you got started?

Kristi:  I guess, when I got started I really did not have an idea of what it would take to run your own business.  And there’s nothing really I would have done anything differently.

I would still jump in with both feet, which was what I did but yeah it’s when you haven’t run a business before, suddenly you’re running it by yourself.  It’s multi-million dollar company, which could be a bit overwhelming.  If there’s any way that I could prepare myself more. I think to some degree, you have to take the process and then the next step is to just do it.

Matt:  Got it.  Got it.  About a month or a half a month ago, I sent out a survey to all of the listeners and asked what were their most burning questions about real estate investing.  I got a bunch of them here.

I just want to fire these at you and see if you can give answers for these and help them out just to give them a different perspective.  Have a little fun from it if you can answer it.  If not, just say pass and say next question.  Does that sound good?  Okay?

Kristi:  Okay.  Sounds good.

Matt:  This question, what are the steps in selecting and growing your power team? Who came first and why?  What is a good way to structure payment of professional services or legal advice if initial funds are minimal?  So there’s a lot there.

Let’s start with the first part.  What are the steps in selecting and growing your power team? Who came first and why?

Kristi:  To me, it’s just, I’m the type of person who just jump with both feet and does it and figure out what way.  It wasn’t a matter of okay I got a business.  Now I have to think about who do I need to get to my team.

It was never like that. It was just I knew I had to get a property.  That’s how you start flipping business to buy a property and to have you buy a property to meet a realtor.

So I probably met a gazillions of realtors before but I thought about, oh this one kind of get the investing side of things so you know, it’s not saying you got to burn any bridges but at that point, it was just a bit of a number to go through.

Partly for yourself, you know what are your criteria where you invest in.  What type of property?

The next step is you need to have a contractor that fixes it up.  So you’re always thinking, wait so you need to buy the property then get a contractor.  You’re thinking ahead so what is the next step going to be?  You have to be logical at that.  It helps.

You could be thinking ahead on what next resource you need so a lot of my realtors are through a network. I would join local real estate investing group.

I would join a local networking group that just try to get referrals more than anything else.  The contractors, the realtors, the lenders that was probably 90% the way I built my resources.

Matt:  Right.  So you just kind of pick them up, just went through the process, and found people, as you needed them.

Kristi:  Yeah.

Matt:  Got it. Got it.  Who would you say is the most important person in your team to your success?

Kristi:  At this point in time, I would say it’s my business partner.  I don’t think we would be at this level, I don’t think I would be in a level I would have been two years ago if it hadn’t been for joining force with him.

Matt:  What did your business partner bring to the table that you were missing?

Kristi:  I guess. We both brought to the table different deals, which was good.  You don’t bring to the table the exact same thing.  He has capital.  I had a little bit of capital.  He has a lending background.

I had project management experience. I think when you have one person with a lot enthusiasm to the business.  That’s one thing but when you have two people.  It’s like you quadruple the amount of enthusiasm because now you got two people.

With two heads together, it’s just more ideas, more possibilities so that was it for me this year anyway.

Matt:  Right.  Nice.  So what’s a good way I guess structure payment for professional service?  How did you do that for the beginning so when, you know, when a lot of your money is designated for the property itself but you still need professionals to work with?  Did you get creative at all in structuring your payment or you just paid them straight what they ask for?

Kristi:  There’s always a way for negotiations. I would say if you’re doing a property and say cost you $25,000 to pay a contractor to do the work.  You don’t have $25,000 to pay him along the way for the work he’s doing.  You probably shouldn’t be 50-50.  You should have found a contingency built somewhere.

It’s just risky to be running so thin and not be able to make those payments.  Initially, the reality of the business is that you can’t do every single thing by the book initially because you don’t even have a business goal.

So until you get that one or two property, I think I bought the first one just in y personal name.  That probably wasn’t the right thing to do but at least it got me started.  Then I was like, okay.

I need a corporation. I got that set up so just a matter fitting the needs for the service and having done something in the business so you brought in some income so that you can save to do the next step.

So that’s the budget.  There’s no doubt about it.  It’s every step of your business.  You’re always going to have budgeting concerns and cash flow concerns.  It’s just going to be on a different level.  Just managing that.

One of the most important things I’ve done this year actually is to develop the cash flow worksheet.  The last thing that I want to do is you know to get to a property and buy a property and not be able to start that pre-model because I don’t have the money to do it.

I never want to get myself into that condition so it’s hard to budget but if you are in a business, it is critical.  Somehow it has packed us some capital to start the business.

Matt:  Cool.  I think we answered that question pretty thoroughly.  Next question.  I know you have a couple of specific areas that you work in so I imagine you see a lot of people or the same people over and over in the industry or any other area.

This is the question.  Can you work in an area with the competition in your area and work with them?

Kristi:  Oh absolutely.  Yeah.  Because I actually wholesaled some properties to some of my colleagues.  They actually sold me properties and depend where you are at in your business.  If you have too many properties and you want to wholesale one then that competition becomes your client.

So I think it’s just a matter of working together and it has a way of going around for everybody so I never see it as a conflict.

Matt:  Got it.  Got it. Let’s see. I know you don’t really do any buy and hold at the moment.  So I’m trying to find some fix and flip type of questions.

Here is a good one. How can you find people, I know I’m in your email list so I know you send me deals every once in a while.  How can you find your people to refer your deals to?  Like if something just doesn’t fit your criteria, you don’t have room for it.  How can you still capitalize on that deal?

Kristi:  I guess again a lot of it has been word of mouth.  Initially when I didn’t know anybody here, I would just go on Craigslist and try to find buyers. I would also show up at real estate investing clubs to find out who’s doing what and to see if there are buyers there and there are.

Not everybody actually buys.  I’m going through and finding the curious ones that actually want to buy.  A lot of it is just word of mouth.  You do one deal with one person.

The next thing you know they’re passing your name to a friend of theirs so who’s also looking for a property so a lot of networking and word of mouth mostly.

Matt:  There’s no way around it.  It’s a people business. If you want to do the business, you got to go out there amongst the people.

Kristi:  Yeah.  That’s right.  Absolutely.

Matt:  Okay. What are your or Kristi Cirtwill’s top three rehab tips?

Kristi:  Uh.  All right.  Rehab tips.  Hmm, don’t over-remodel for the neighbourhood, which is always tempting to do because you want to make $230,000 house look like a million dollars.  Just the reality is sometimes you never get your money back for that.

Always build a contingency so if you think it’s going to cost $20,000, you might just want to plan in the back of your mind that it could be a couple thousand more for the prices.

The other thing I do is I try to find any new contractors that I think I maybe hiring.  I try to see previous jobs of theirs like if they just recently completed a job somewhere.  I try to go to that job site just to tale a look at their work.  Just kind of do some do diligence to make sure I’m doing a good situation?

Matt:  Right.  Great.  Number one was don’t over build for the neighbourhood.

Kristi:  Uh-hmm.

Matt:  Number two was building a contingency or a safety net so to speak because there are always surprises in rehabs.  And three is do your research on your rehab team.

Kristi:  Yep.

Matt:  I love it.  I think that’s a great one.  I haven’t lost any significant money in a deal yet but I know where there was money to where I could have made more.  There are situations where I could made more money was definitely by selecting my rehab team a little bit better so I think that’s a good tip right there.  Good point to point.

So great!  So thank you. I got two more questions for you.  If you lost everything today and had to start from scratch, how would you restart?

Kristi: I probably do the same exact thing that I did.  Just jump in with both feet and build it the exact same way that I did through networking, word of mouth, and kind of just following the similar plan.  I mean it should go faster the second time around because if you already have the system and strategies in place then it’s just a matter of implementing and getting back to work.

Matt: Right.  Right.  So what you’re doing is working and you do the exact same thing?

Kristi:  Yes I would.

Matt:  Awesome.  Awesome.  Cool.  So Kristi, what’s in your future right now that you’re really, really excited about?

Kristi:  Well just where I see the market going whether that’s good or bad to people.  To me, I always see opportunity no matter what type of market we are in.  That’s what gets me up out f bed every morning.

Just thinking about the opportunity to do what I’m doing like flipping houses, building up capital, and eventually when things hit rock bottom and you can’t buy any cheaper.  That would be the time to just start accumulating and eventually lead to retirement so.

Matt:  Right.

Kristi:  So that’s what gets me out of bed every morning.

Matt:  There is a lot of opportunity in today’s market right now.  Absolutely.  You obviously see the same thing.  That’s great.

Well Kristi, thanks for taking time out of your busy schedule.  I know you got a very busy one.  You know what, would you mind coming back in the near future and share a little bit more about?

Kristi:  I would love to, Matt.  Thank you.

Matt:  Awesome.  Thanks a lot.  I will see you in the real estate clubs soon.  I’m sure.

Kristi:  Okay.  Sounds good.  Thanks, Matt.  I appreciate it.

Matt:  You bet.  Take care.

Kristi:  Okay.  Goodbye.

Matt:  Okay.  ‘Bye ‘bye.  So that’s it for today.  Until next time, I do have another interview with another real and live real estate investor doing deals in today’s market, no cheerleaders, no coaches, no mentors, and no Monday quarterbacks.

Just real live estate investors doing deals.  Nothing to sell.  Nothing to promote.  No hidden agenda.  Just here to give back and share their information to what’s working for them right now in today’s market to share that with you.

So until next time, as a very wise person once said, “everyone who achieves success in a great venture.  Solved each problem as they came into it.  They helped themselves.

Powers known and unknown to them helped them at the time they set out on their voyage.  They keep going regardless of the obstacles they met.”  To your success, I am Matt Theriault.  Living the dream.

(Voice Over):  Thank you for spending this time with Matt Theriault and the Epic Real Estate Investing podcast.  When you have time, stop by iTunes to leave your comments and let us know what you think of this show.  And if you haven’t done so already, get started investing today by visiting FreeRealEstateInvestingCourse.com to access Matt’s free course on how to deals, no money required.  Until next time.  To your success, to your success, to your success.