The new year has just started and what better way to start your 2020 investing than the right way? Host Paul Lizell rides solo in this episode to give you a guide on what you should be looking forward to do in 2020 along with the objectives you should have. As the market is expected to fluctuate here and there, it is imperative that you have your backs covered in every situation. Compared to 2019, Paul outlines the new year as one where we maximize our deals. He breaks down how you can prepare well for that while sharing some business plans, market outlook, and tips on how you can get started.
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Maximizing Deals: Your 2020 Business Plans And Market Outlook
Setting Your Goals For 2020
This is for new investors and where to start, how to find deals in Craigslist, talking to REO agents and real estate agents in general. How to find contractors, that one we didn’t hit on, but the best way for people to find contractors whether you’re new or experienced is through HomeAdvisor.com. Put it in your address and what kind of work you’re looking for. You can usually find 2, 3, sometimes as many as 5 different potential contractors, whether it’s HVAC, electrical, plumbing, roofing, siding, windows, doors, flooring or whatever you end up doing there. That’s a great site.
Another one is Craigslist. You can find people on Craigslist, especially in the winter. People are slow like landscapers and they look to pick up other work. You can have them do cleanouts, depending on their skill level. You can have them do drywall and some other stuff for you. I have used guys who are multi-skilled. A lot of these guys know how to do a lot of different things and you can get them at usually an affordable rate too. Craigslist is another good way to do it. We talked about banking. The three different companies I use are LendingHome, Lending One and Lima One Capital. They’re all good. The more experienced and the more deals you do, the better deal you’re going to get, the better the rate you’ll get, fewer points, so on so forth.
Kinds Of Wholesaling
We want to get into closings and different kinds of wholesaling in the truest sense, depending on who you talk to. They’ll argue one way or another. Technically, I call it wholesaling when I buy a property for $20,000 from the bank, resell it to somebody else that same day, back-to-back closing, I call that wholesaling. I picked it up for $20,000 and I sell it for $30,000. To me, that’s wholesaling. There’s another method to do it, but you’ve got to pay all kinds of closing costs on that, which I’ll get into that. First, I want to hit on the other type of wholesaling, in more traditional words, the assignment of contract. I’m picking it up for $20,000, sign in contract to your end buyer for $30,000. You can either put that as payment on the HUD. You could do it as a consulting fee. You could put your corporate name on there. You could do it off the HUD if they’re willing to do that and then issue a 1099, so they get that full amount written off. That entails no closing costs for you.
Let’s say you got $10,000 spread there. To give you an example of a deal we did, this was a HUD property and HUD is a whole different animal. This was in Pennsylvania. Generally, across the state, the transfer tax is 2%. However, there are municipalities that add more like in Philadelphia, it’s 4%. In Pittsburgh and different areas, it can be as much as 5%. In Reading in Berks County, it’s 5%. The first one I’ve done in Coatesville is 3%. I think they charge another full 1% there for the city of Coatesville. To give you an example, I picked it up for $50,000, sold it to a fixer and flipper for $61,000. The cost I ended up having there. I did title insurance on this one because this title insurance company wouldn’t let me do it without title insurance on my end. What I usually try to do is wave the title insurance on my end and have my end buyer buy the title insurance because it does make sense for me to ensure a deal for 5 minutes.
This particular title company didn’t allow me to do that. I had to eke $569, that’s how much the title insurance costs. There are other costs with this too. This one was in HOA. There was a $750 capital contribution fee that had to be paid. There’s a 3% transfer tax because HUD doesn’t pay any. That was $1,500 right there. We had tax insurance. I also had an extension because the HOA wasn’t quick enough with the paperwork. I had to do another $275 on that. The title search fee of $275, a recording fee, so on and so forth. That’s another $500 or $600 between recording and some other fees were sewer and trash.Speed is key in flipping. Don't leave that property sitting. Click To Tweet
My $11,000 wholesale fee quickly became around $5,312 or $5,700, somewhere in that range. It ate up most of it. That truly eats into your cost with the back-to-back closings there. Depending on the property, if it’s an HOA, we have a capital contribution fee. It can hit you. Depending on transfer tax, a lot of state stamps transfer tax like Florida does stamps. Other states stamp other things too and they have other ways in which I come up with a transfer fee or costs. Generally, most of them are cheaper like Pennsylvania with that 2% transfer tax. That’s something to keep in mind when you’re thinking about doing this here.
When you’re finding a deal, I knew I had to sell the same for at least $10,000 more than what I was picking up forward to make anything on it. Knowing what kind of costs were going to be coming here on the resale side and luckily, we had $11,000 spread. We got between $5,300 and $5,700. I don’t have the figures in front of me, so I don’t know for sure. That’s something to think about when you’re buying these properties, whether you’re doing an assignment, which you can’t do with the banks. Banks will not let you assign the property. They will sometimes let you transfer out of one entity to another, but HUD won’t at all under any circumstances. Some other banks may have some leeway. You can also put it in a trust, transfer the ownership rights to somebody elsewhere, you resign as the trustee and a beneficiary. You name a new company or a new buyer as the beneficiary. You could do that and get around it, but a lot of end buyers are not comfortable with buying a trust. Keep that in mind too. They don’t like buying trust. They don’t know what it is. They don’t fully understand it, especially if they’re a newer buyer.
There are a lot of different ways to skin a cat here. Another way people do it is they’ll have shell LLCs. They put it in LLC and try to sell it to somebody else in that LLC. A lot of people don’t want to buy in that LLC. A lot of people aren’t comfortable doing that. If they have a hard money lender, the hard money lender may not let them use that LLC. It’s something to think about there. I’ve done the shell LLC. It hasn’t worked out. I ended up having to get rid and discard this entity. That’s something to keep in mind. That being said, whether you do a back-to-back closing or an assignment of the contract, you need to find more deals out there because there are going to be fewer deals out there available than there have been in years past. Even potentially less than this year too, keep that in mind, hopefully not but look at it that way and you’re going to try to maximize what you can out of every single deal as much as possible.
Wholetailing Versus Full-Scale Rehab
The next point we’re going to hit is for more experienced investors, but it’s going to be good for new investors as well. It’s important to know the difference between wholetailing versus a full-scale rehab. For those who haven’t been investing for a while, we’ve taken advantage of this market over the past few years and we’ve been doing a lot of wholetail deals. What a wholetail deal is it’s a property that doesn’t need a ton of work. It needs maybe paint, carpet, maybe the kitchen cabinets are okay, but they’re ugly so you paint them. The countertops are not great. Maybe throw in a piece of granite on there or new Formica cabinets on. Granite has dropped so much. It almost doesn’t pay to do Formica as compared to the cost of granite. Sometimes you don’t want to put granite on because those cabinets don’t look great and it’s going to look weird with granite, with mediocre cabinets, but at least you’re doing that.
You don’t have to do too much in the bathrooms. Maybe replace the vanity and the sink. Hopefully, the tubs are okay. You can clean up the tile or the tub. Put on some new flooring, whether it’s carpeting, laminated flooring, vinyl flooring or hardwood flooring, whatever you’re putting there and paint job. Sometimes it pays to do little things like new light switches. Light switches are all different colors throughout. Go to a plain, nice, white and clean. Outlets sometimes modernize them from the regular light, which to the push-button one. It makes them look more modern. It makes it look fresher and they don’t cost a fortune. You can usually buy them in jumbo packs as well. Dimmers and recess lights here and there.
Those are some wholetailing things that you could do as compared to a fix and flip where you’re getting a full-scale fix and flip. You maybe need your roof, your siding, new windows, new doors. You sometimes need a new drywall, a new flooring, usually throughout HVAC, electrical upgrade and plumbing. Those are full-scale rehabs. If you’re looking at a property, let’s say it’s a property you’re picking up for $100,000 and you can put $25,000 to wholetail it, dress it up, clean it up, dress up the landscaping, make that look clean. Paint the front door and new flooring, paint it throughout or whatever other updating it needs to make it look good. You can get $175,000 for it as compared to putting $50,000 to $75,000 into it doing a full-scale rehab, then getting $200,000 to 225,000 for it. For me, that’s usually not worth it. In markets where you have fewer buyers, where people are pickier, you have to go that route because otherwise, other buyers are going to be looking at other properties and not looking at your unfinished product.
In this market and I still anticipate it to be a market like this, take advantage of wholetailing as much as possible. New investors take advantage of wholetailing. Do not over rehab properties. The biggest mistake I made when I first got into this business is over rehabbing. Making it like my house. People don’t want it to be like your house. Maybe some people do, but most people don’t. They wanted to have their own things to do. Update it and make it look nice and clean. In the bathroom, a nice white subway tile looks great. You don’t have to get into whether it’s travertine or whether you’re getting into a marble. You don’t want to get into that crazy stuff. Make it clean, simple, nice, bright white, off white colors on the walls, white trim, flat white ceiling, flat walls, semi-gloss trim, as basic as possible. These are the best things you could do and do not go crazy with full-scale rehabbing unless you have to.
If they’re structural issues, I understand, you’re going to have to do some different stuff. You might have re-drywall everything. If you don’t have to, avoid it like the plague. Think about this. It may take an additional month, two months even potentially to do the full-scale rehab. If you have a loan out there and your holding costs are let’s say $2,000 in interest per month plus you’ve got insurance costs and you’ve got real estate tax costs. You could be holding $2,500 to $3,000 per month plus utilities. Don’t forget utilities. That is eating up say up to $5,000 per month potentially. If you do two more months, there’s $10,000 profit out. Your $50,000 now is down to $40,000. Do you want to take that $25,000 and do the wholetail deal as compared to taking all that extra time and risk for the extra $15,000? I know I would.
Unless you don’t have any more deals in the pipeline, try to maximize it. That’s something to consider. If you don’t have anything coming, maybe upgrade a little bit more. It’ll sell quicker and you’ll get a few more bucks for it. Speed is key. Don’t leave that property sitting. Try to get those subs. If you’re subbing out and GCN-ing it yourself as quickly as possible. Try to get them on schedule. There’s a way to do it as far as cleanouts and then for what you schedule from thereon out. If you want to find out more, reach out to me. We do have an educational program on that. We teach you how to do everything from A to Z and explain what the process is for rehab, whether it’s a full scale or wholetailing, what you do first and how you line guys up most importantly.
Usually, you do want to start on the outside looking good, depending on the weather at the time of year. In the wintertime, it’s harder to do outside. You usually have to wait until late winter to early spring for that. That’s something to consider as well, as far as maximizing deals, only if you have to. If you have good deal flow coming in, wholetail, re-list on the MLS, get rid of it, move it, go to the next one. Unless it’s a home run for you, move on to the next one. I hope you enjoyed this. I’ll have another segment or two here as we adjust and figure out what the market is doing, maybe after Q1 and then Q2, Q3, Q4. I like looking after each quarter trying to figure out what the market is doing and try to point you in the general right direction, what I’m seeing, what markets look good, what markets don’t look good, what rates are doing. We’re going to look at everything and I’ll try to give you continuous updates. Stay tuned here. Hopefully, we’re going to have a new episode every single week, whether it’s a solo cast for me or whether I’m interviewing somebody. I’m going to interview some high-level people. I’m going to send it to some crypto people. I hope you enjoyed this. Take care.If you do things yourself, you run the risk of burning out. Click To Tweet
New Lead Source
Have you ever felt that you hit the ceiling as a real estate investor where no matter how much time and money you spend on marketing, you can’t find enough deals to feed the family? You know what I’m talking about. You spend thousands of dollars per month on marketing. You then have to drive all around town looking at properties, negotiating and talking with home sellers to have them cancel on you at the last minute. Do you have a steady stream of phone calls each day pushing you towards closing the number of properties you want to close on each month? You say that you’re going to do more marketing, but now you need to hire someone to handle a dramatic increase in calls. In fact, you may even need to hire someone to go visit the houses and talk with the sellers. If you do it yourself, you run the risk of burning out, losing deals and giving your hard-earned cash away to the ever-rising competition in your area and for you to take a second rest.
The majority of people that we have surveyed would tell you that despite the fact that their marketing looks good, rarely does it bring in predictable leads. What you need to add is a new lead source that fills in a gap and consistently allows you to buy more houses. You don’t want to do what I did. I remember having to rely on spending thousands of dollars each month on marketing. I’m spending half of my day driving around without even getting a single bite and when they did, they cancel on me at the last minute. I made decent money. Don’t get me wrong, but the constant endless grind became unbearable to the point where I would question, “Is it even worth it?” What’s the good news? The good news is now things are different. I can buy houses anywhere in the USA without leaving the comfort of my own home. Did I mention my net profit on each deal is a lot higher now because my expenses are a lot less? Go to REOAuctionAcademy.com to learn how to buy houses in any market without leaving your home. I will show you real-life examples of how I do it.
2020 Objective: Maximize
This episode is going to be a solo cast. It’s not a rant, but what to look for and what you should be looking to do in 2020 and what objectives you should have. We’re in a slightly changing market depending on where you are in the country and where you’re investing. Some markets are still red hot. The majority of them are still red hot. You’re still probably seeing low inventory amounts. We see some slight change in that. We’re starting to see a little bit higher inventory levels across the country when we’re looking at auctions. What we’ve seen is anywhere from 3,100 in 2019 to 3,900 on average for an auction platform like Xome to now they’ve been consistently for the past months around 4,100 to 4,200 homes that are up for auction.
Their inventory is up a little bit, which tells you you’re starting to get a little uptick potentially in foreclosure action here. Everything’s delayed. Sometimes this could have been from a few months ago if there was an uptick in foreclosure. We were seeing it there a few months ago. We finally see it now, then foreclosure levels start to drop a little bit so you could see a little drop down the road here. That could happen. Keep your eye on that because I believe that they’d happened in 2019. What’s our goal anyway? We’re going to talk a little bit about what we’re planning to do. We’re going to maximize our deals because we did less deal flow in 2019 than we did in 2018. That’s partly because I added a lot of rentals in 2019. Not a lot, but I added ten units as rentals. I’m continuing to add a few more. I’m not sure how many I’m going to increase it to, but that is something we’re looking to continue to get to.
With rates being low, it’s a great long-term plan to have. If I fully retire, it’s something to look at. I need to be able to get some cashflow properties that are going to help fund my retirement because Social Security is not going to be there for us, I’m sure. We’re going to have inflation. We’re going to have higher costs on everything. I need to be able to make sure I have enough money to retire on besides our life insurance policy and retirement accounts, so on and so forth there. What we’re looking at doing in 2020 with lower numbers is increased potentially the number of fix and flips or maximize our property.
Let’s say we get 30 properties over the first half of the year, we may end up doing ten of those as fix and flips, whereas in the past we might have done 2 or 3, maybe 5 at the most. We’re probably going to increase that by a bit and potentially another 5 or 10 of those as wholetail deals. When I say fix and flip, I’m talking about a little larger scale and wholetail where you’re doing paint, carpet and clean up. Hopefully, no bathroom or major thing. Maybe new vanity, faucets, toilets, so on and so forth but hopefully, we don’t have to redo the shower and everything.
We’re trying to do more of those and we’re going to try to maximize our profits. Instead of wholesaling it for $5,000 to 20,000, maybe we’re going to try to get $30,000 to $60,000 fixing and flipping these properties. When the deal comes up, that’s the right deal that we could potentially buy, renovate and pull cash out of the rental and be whole and maybe even pull more cash out. We have a couple of potential deals. One of them I have here in Telford. I’ll be in it for $130,000. I could probably pull $150,000 to $175,000 out of it and keep it as a cashflow rental. It’ll probably be a 30-year, which is fine by me. I don’t care if I’m getting money out of it. I’m getting current cash in and if it still cashflows monthly, I don’t care if it takes 30 years to pay off because I’ve got no skin in the game. I’ve got nothing into it. It’s all pure profit at that point. The return is infinite. The few that we get like that, we’re probably going to hang on to and maybe we hang on for 5, 10, 20 years or forever.
I have regrets when I look back to 2008 to 2011 timeframe when I was wholesaling a ton of properties that I picked up for $75,000 to $110,000. Some of these properties are selling for $250,000 to $375,000 now. If I would have held on them for a period, let’s say a decade, you’re going to have some costs on that, but you should be able to cashflow those properties and rent some and then turn around, do a minor fix-up and resale. It could have been some huge profits. That’s off the 2008 crisis. I don’t see that we’re going to have a 2008 crisis like that. I don’t see a repeat of the financial crisis in 2008 is what I’m telling.
The Future Is Cryptocurrency
There will be a downturn or recession, the question is how hard will it be hit? How hard would the dollar get hit? That’s my big worry. What’s the dollar going to look like in the next 5 to 10 years? Is it going to crash? That’s why I’m doing things like cryptocurrency. I’m putting a bit of money in Bitcoin, Litecoin, Ethereum and then Bitcoin Cash and other cryptos as well. There are plenty of other ones. There are some good coins and there are some crappy coins out there. Do your due diligence when you’re looking at these cryptocurrencies. They are our future. All the world’s governments are laying out plans for them to be able to use them and to make it simpler to have. You don’t have to have twenty keywords to remember. They have it written down somewhere.
It’s going to be easier. In the next 2 to 3 years, it’s going to be much easier. Even our parents and grandparents will be able to do it easily and not have any issues. This is important to keep in mind. When you’re thinking about the future and alternative investments. Cryptocurrency is something I like and recommend, not financial advice. Talk to a financial advisor if you want. Most of them don’t like cryptocurrencies. They’re going to say they know nothing about them and they can’t make money off them. Keep that in mind when you’re talking to them. Do your due diligence on them. They’re built off blockchain technology. Blockchain technology is our future on everything. Blockchain will be used by the counties when they’re recording deeds to stop these people from being able to record fake deeds against properties.Do your due diligence when you're looking at cryptocurrencies. They are our future. Click To Tweet
Blockchain technology will change everything. You’re going to have a social credit score on your phone. Be careful what you post on Facebook, Twitter, and any of these different things. Be careful of what you put on there. Keep it clean and decent because you’re going to have a social credit score. They’re already doing this in China. It’s only a matter of time. We’re living it. We’re heading into that direction. That’s where we’re going, so just know that. Off from my little rant on that. Let’s get back to real estate here. What I see for 2020, I see it as still a growing year because inventory is lower.
As long as inventory is low, it’s basic macro-economics. When you have the supply down or flat, but the demand still up, you’re going to have prices going up. As soon as that demand drops a little bit and it hits that supply curve, everything will change at that point. It will have a decrease in prices or if something hit the 10-year Treasury bond and the rates went up, that would throw us into a big downturn as well. We’re living off cheap money. Money is cheap. It’s the heroin for us. It’s what’s keeping this whole market going. It’s what’s keeping the stock market going up. It’s what’s making the real estate market go up. No bones about it. This is based on cheap money and cheap money can’t last forever.
I remember growing up in the ‘70s. I remember a little bit of the late ‘70s and early ‘80s of 18%, 21% interest rates. They were crazy. Mortgages were insane. Housing was cheap then. You were picking up houses for $20,000 to $70,000. Now houses are nowhere near that. Your median house price depending on where you are is $250,000 to $275,000. Here in California, it’s probably more like $650,000. That’s something to keep in mind as well. If rates increase, real estate is going to take a major hit if it’s a quick increase. If you have a slow gradual increase, you’ll have demand starting to edge down. I see 2020 as being an overall solid year. It’s going to be an election year. They’re going to do everything to keep the economy going. The Federal Reserve is going to continue pumping money and keeping these banks afloat.
They’ve been doing it with the overnight repos. They’ve been doing $300 billion to $400 billion at night to keep these banks solvent. The banks aren’t solvent without this. Keep that in mind too. We could have a banking liquidity crisis here at any point. They’re going to try to keep it going. They’ll try to keep this Ponzi scheme going as long as they can until they get the cryptocurrencies up and operational. People are comfortable with them. They then could do a shift out into the cryptocurrency world as a basket of currencies. Some will be backed by currencies. Some will be backed by the dollar. Some will be backed by a basket of currencies. Some will be backed by gold and silver. Some will be backed by companies.
Bitcoin is backed by the fact that there’s only 21 million Bitcoin able to be mined. Four million were permanently lost. There are seventeen million Bitcoins we’re able to get out there. There’s going to be a supply and demand with that. Bitcoin is the original one, the granddaddy of them all. It will be the one that most people, I believe, will lean on for now. There will be others that will come and eventually something will replace Bitcoin, I’m sure. That would be bigger and better. As for 2020, I see the real estate market being good. I see renting stagnant. I don’t think they can increase too much more. In many areas, we’ve hit that affordability index where it’s becoming unaffordable. We’re going to hit that wall there. The rents are up and they are good right now and cashflowing properties have been fairly easy to do.
Maximizing Deals, Doing Due Diligence
If you’re a guy or a gal who likes to acquire rentals and manage them, do it and add more. It’d be great to add more while rates are still inexpensive. As long as you’re bankable, continue to look to do that. I certainly would be doing that and picking and choose which ones I want to do here. Maximize what you can with each deal. If you could make a quick $30,000, $40,000 on a wholetail deal, but you can make $50,000 or $60,000 doing a full-scale rehab, I would still say do the wholetail deal. It’s less risky, less money out, less time, fewer costs. Do the $30,000, $40,000. Take that and move. If you can make a quick $20,000 on a wholetail deal, take the $20,000 and run with that one and roll into the next deal. As long as you’ve got a pipeline of deals.
If your pipeline is getting tight, if it’s something like, “I don’t know where the next deal is coming in at,” then maximize everything you can. If you’re new and getting started, maximize everything you can on each deal for now. Learn and don’t go crazy. Don’t over-rehab properties. Make them look nice. You can make them look nice affordably, as much as you can. Hopefully, you don’t run into any issues and maximize your profits. Roll it into the next deal and find the next one. If you’re new, find a mentor out there. Find somebody else who’s been doing deals. Find out what contractors they use or if they have anybody that can recommend it to you. Make 2020 a big year. I plan on it being my best year ever.
We’re off to a great start with some of the things we have as far as fix and flips. Hopefully, wholesaling will continue to grow as well. That’s our hope anyway. We’re going to be doing a little less wholetailing. We are normally 85% to 90% wholesaling business. Now we maybe 50% to 60% wholesaling business, but whatever the market does it does. I hope it’s more than that because I like wholesaling more than fixed and flipping. If you’re doing fix and flip and if you’re going to do more fix and flipping, make sure you have a good team. It’s important to have a very strong contractor and a good relationship with people as far as contracting is concerned. It’s important that you have good lenders and lenders that will give you good terms so you can maximize your profits.
That’s one of the things we’re doing right now. We’ve done a lot of business with Lending One, LendingHome, Lima One Capital. We’re getting much better rates with them, 7.75% as compared to 10% and 11% on 90% borrowing of the LTV. We’re getting much better rates. If you’re a new guy, you’re not going to get that. You’re going to get 11%, 12% rate with more points. To do a few, show some history and then they will work with you and give you better deals here. They’re hungry to lend. Look for that. Maximize your relationships there. As far as private lenders, hard money lenders and partners. Maybe you have a contractor who doesn’t have a ton of money, but he has enough money where he could fund the rehab, join together with them. He’s going to be able to keep the cost down and split the profits. That’s a much lower risk for you, but keep your eye on them. Make sure that they’re doing what they’re supposed to be doing.
Do all your due diligence. Make sure you have spreadsheets with what needs to be done and cost breakdown. Make sure you have an agreement with them that’s a strong ironclad agreement as far as partnerships. We do have that. We do a lot of joint ventures. We do partnership things. A good basic strong agreement doesn’t have to be twenty pages. Most of ours are 2 to 4 pages that we utilize. You can get enough info in there. Make sure everybody understands this is your responsibility, “You’re responsible for this and this. I’m responsible for this and that.” If you have all that laid out, it’s going to be much easier and much better for you.Cheap money can't last forever. Click To Tweet
Next for people that market, whether they do pay per click, that they’re picking up properties, not off the MLS but off-market properties here. Try to see what’s working best for you. PPC is working better for people now but it gets costly. You have people doing the postcard. There are a couple of different theories out there. I agree with a buddy of mine who said, “Now that everybody’s going to PPC, it may be a great time to do mail postcards.” There are fewer people now in postcards. It’s all about competition. The fewer people out there doing the same thing you’re doing, the more deals you’re going to be able to get. You may miss out on some of those PPC deals, but you’re going to be getting other deals and it may be less costly for you.
Other avenues also include contacting realtors. You want to contact realtors and find out if they have any potential listings that need a lot of work that you can pick up and make, whether it’s a fix and flip or even potentially a wholetail or wholesale deal. You’re going to need to expand your marketing and expand what you’re looking at. We’re doing it. I’m buying properties from wholesalers. I haven’t bought properties from wholesalers and I can’t tell you how long. It’s been many years. I’m starting to do that. It’s important that everybody looks at doing that.
A lot of these wholesalers, you can get good deals. If you can take the property down, you could turn around, probably put on the MLS and sell it for more money. You make a nice spread on that. That’s something to think about too. We’re doing that. We plan on doing that for the foreseeable future, especially in our local market here. Not as much in other markets. In other markets, we’re still going to do what’s off the MLS, bank-owned auction properties. We’re going to continue going that route. What we’re going to need to do is continue to build your network of wholesalers. Go to your local REIA and find out who are the wholesalers. Keep in touch with them. Contact them at least every 2 weeks, 3 weeks, once a month, whatever you decided to do. Put that on alert on your calendar, so you’re constantly contacting these people. It’s extremely important to be able to build as many relationships as possible with realtors and wholesalers. Take them out to lunch or coffee. Get them to know you, like you and want to sell to you. Show them you have the funds to be able to buy or the means to be able to take properties. It’s going to be vital for you in 2020.