Big Dreams = Big Plans. Powered by persistent effort and patience over time. Readiness to change = Win BIG!
Fear can give us focus that can fuel us to take positive action.
When we’re afraid that something won’t happen or even that it will,
fear points out what is most important to us (in our lives). Respect fear, keep going, and move past it.
Self-confidence will allow you to build Wealth. Think like a millionaire, act like one, become one.
Winners are masters of strategy, time tested models and negotiation. They know how to minimize the impact of bad luck–and to put themselves in the way of lucky breaks.
Begin with be intentional/purposeful/intensityful/focusful. History is best teacher of life… use proven models/systems. Some of your Best Thinking will be done by other people.
“Unlimited Power” – by Anthony Robbins. Key is to understand how they achieved their goals and why they did it that way.
Become a collector of success stories and models.
Success stories(worth exploring) have 3 parts:
- Big Goals/Think Big (what he thought he could do)
- Plan/Models/Habits (how he did it)
- Produce/Success (what he accomplished)
Lost $100k Lesson
They passed on a condo deal that they should have jumped on. Anyone could have bought a short term option for a few hundred dollars and had investors lining up to partner with them.
He should have been asking,
“Is this a deal?”
An investor has the confidence to act when the opportunity presents itself.
Wake up every morning and say:
“I’m an investor who has built financial wealth.
Today I found/recognized an opportunity, took action
and made a $100k deal.” “I am a Marketer that just happens to invest in Real Estate.”
Mornings with Michael
Investing/How to grow financial wealth
Personal Balance Sheet (1 pg doc) Summarizes my Net Worth
1nce/month “How can you make your net worth grow?”
Wealth is about owning/controlling businesses/real estate that generate money.
If opportunity arises in conversation, ask “Do you know of any good deals?”
Set up a showing for next morning. Look at the property, understand it’s priced below market value and quickly make an offer.
Making Million$ through: traditional investing, investing in businesses and investing in real estate by…
Constantly search for great opportunities, recognizing them when I found them, acting on the best ones quickly.
3 Areas of Focus – CTN
- Good Criteria. SFH or Multi; what style/type; right features/amenities for sale or rental; WHERE IS IT LOCATED? Greatest opportunity/least risk (filter). Identifying predictable valuable deals.
2. Terms include Conveyances, occupancy, and closing costs. Buy right, determines the real/great deals!
3. Network. Relationships w/people who send them opportunities, mentor them, help them buy and maintain properties, and often provide helpful services (leverage).
Dream team: Agents, contractors, property managers.
“When all my other tools fail me, I know I can always rely on doubt and discouragement to break the heart and shatter the will of man.” – Devil’s Wedge
Do you doubt your ability to become The Best? Do you believe it’s possible to become a real estate investor, that investing can help you reach financial freedom of choices, and that it is all within your grasp?
Why are you so afraid? Why are you not doing more investing? You know it can make you wealthy, so what exactly are you afraid of? Intellectually you know it’s a no brainer, so why you so afraid bro?
So why don’t you do more investing? Have the confidence to take action! Don’t let the powerful wedge of fear and doubt get between you and your dreams.
- The way you see Yourself
- The way you see The World
- The way you see yourself in The World (mental image/visualization/movie in your mind)… Play it out, visualize the movie in your mind of what you want, your preferences. I.e Visualize yourself walking up your sidewalk, what does your new exterior of your dream house look like? What does the front door look like as you grab the handle and open it and walk in? Notice the flooring, is it tile, plank/laminate. This Really, really, really works! I know, cause i’ve experienced it. If the details aren’t quite there, give it time, they will come.
I am Investor. I am Wealthy. We try to do what we can do and most of the time We Can Do It.
Investing is hard and complicated. It is only as hard and complicated as you make it. Invest in areas you understand, when done right is safe and secure. You don’t time the market, the timing will find you. All the good investments are taken, not. Truth be told… Every market has it’s share of Good Investments.
1. Make a decision to have what you want, even if you don’t know how
I want to live a life of personal and financial freedom before my 77th birthday. I want a week long Paris vacation. I want my ideal partner in my business/personal life.
The image you have of yourself as an investor is seen through lens (as you are creator) do you look through to see the world of investing? This lens will either guide/magnify or misguide you.
2. Be clear about the outcome
Be clear about the details of the outcome. Consider what you DO want, not what you don’t want. Practice visualizing yourself in the situation you want to create. How do you do this? Start small.
When you order a life from the universe. Imagine how the financial freedom, finding the perfect partner or a happy life. You must imagine the look, feel and sound of the perfect situation for you in your life.
3. Detach from the process
The “how to do it,” instructions will appear after you have clearly defined what you want. It arrives in your life, ready for you to experience.
4. Expect that it will happen
Set an expectation that what you want will, in fact, appear. It may not appear in the way you thought or at the precise time.
5. Be open to possibility when things don’t go your way
The path to the outcome may (and probably will) show up in ways you never imagined before. It is your job to explore possibility. Suspend judgment of how things should be done based on your past experiences and consider that the very thing you think is a deterrent may be the very thing you need to get what you want.
Many times, people, circumstances and resources will show up, but you’ll miss the connection. Keeping your eye on the goal, is important.
6. Practice appreciation
Be thankful for the things you have in your life right now. Do you look at your challenges as opportunities to grow or burdens that need to be eliminated? When you practice being thankful for specific events in your life, including the burdens, even when you don’t understand why they appear in your life, your ability to manifest accelerates almost to the speed of thought.
One Secret to Being Rich
Surprise people. Leave a lasting impression on people. It’s HOW you do it. Over perform. Leave a lasting impression on people by exceeding their expectations and leave that vibe that everything i touch turns to gold, people start paying attention to me. Share your wins and your weaknesses with others, and soon your wins will precede you.
Save 50% of your income. Sooner you can invest, the more you invest, the sooner you will be financially free. Spend little, invest in Real Estate $25/acre.
Take family/parents on vacation. Pursue maximums for your financial life. Save world hunger. What kind of person do you want to be? What kind of life do you want to lead?
Seek wealth to your true highest financial potential by ceasing BIG Opportunities. Pursue the means to live your dreams. You got this!
What did you want to be when you were a child when you grew up? What’s financially possible?
Go into real estate and see a world of unlimited possibilities. My future is what I imagine myself of who I can become and to be capable of what I can accomplish. Amass one of the largest real estate empires of all time.
Trammel Crow Company was Real estate developer and one of largest diversified commercial real estate services companies in the world because he saw no limits to his potential.
Imagine better possibilities and a bigger life.
Start Small and grow powerful
- A little of some acquired abilities/skills/effort/hustle (via reading, seminars, mentors, consultants)
- A little bit of well spent time (seeking opportunities, networking w/other investors)
- A little well placed attracted money (from family, friends, other investors, lenders)
Chris Hake, a Millionaire Real Estate Investor in Madison, Wisconsin,
started out like most investors, with books, audio cassettes, and seminars.
You must buy in a way that lets you afford the cycles. And you have to know where you are in the cycles.
If your agent calls and says I’ve been watching this property for a while now and the price just dropped. You have to Quickly jump on it.
The day before a foreclosure sale, if bank lowers it’s opening bid by $100k, and you will know this by calling the bank to learn more about the property. Then you (and ur partner) can purchase the house at auction, resell it in 90 days and make 100k.
There is no timing the market, so you must know the fundamentals of a property, what it will do in a good market and what it will do in a bad market.
Keep your hook in the water. Constantly search w/ur strict criteria, watch for the moment when opportunity surfaces. You take what the market gives you. Be in the right place all the time.
Economic. Job growth, interest rates, population shifts, and area revitalization. (better to play the downturn)
Personal. Positive circumstances such as relocation, marriage, and family growth. Others arise from negative conditions such as divorce, death, and debt. (in upturn, these local/personal forces are often overlooked …postcards, website!)
Snowball: Buy 1 house/year or every 2-3 years. If ARV is 100k, you are a Millionaire in less than a decade. As investments grow and compound, so does knowledge and buying power.
II. Think rich/wealth thoughts.
Money: Acquire it, hold on to it and do good things with it. Allows freedom of choice.
Spirit has provided. Go out and do something with it.
As you progress share/be generous w/other people. Talk about successful deals, saving people from foreclosure, putting people in affordable homes, and turning fixer-uppers and even neighborhoods into places people want to live. Also my success created income and opportunity for partners and helpers. Money in the right hands can be powerful and helpful both for yourself and others.
I wanna personally grow with my fortunes, otherwise I won’t have them for long. I have the mindset to build, hold and use wealth for the good of all.
If you were to climb Mount Everest’s peak, you would study, plan, and think strategically for months/years. One misplaced step and you fall short or fall!
7 THINK and Grow Real Estate
- Think powered by a BIG WHY (strong desire, drive, personal reason to succeed) = Highest Achievement and Potential
- BIG Goals, Models, Habits
- Money matters for the good (several mentions in the Bible)
- What’s your Net Worth (spread sheet) Track it over time
- Real Estate
- Value, Opportunities, Deals
Why. Adopt a Definite Purpose, keep at it with an all consuming obsession. Study the lives of successful people to discover their Inspiration/motivation to Achieve.
Clip news articles, read biographies, watch documentaries on their lives. What’s their common denominator/pattern? Level of motivation that is powerful and lasting. How bad do you want(have) to be FREE from your job/self employment, have more choices in your life, to be able to pursue your dreams, gain security that comes w/abundance.
How much am I capable of? What’s possible for me? High achieving Millionaire Investor. Striving to be your best will have you following in their footsteps.
Financial training and spirit/guts. What’s your BIG DESIRE/WHY/REASON, for seeking/pursuing Financial Wealth? Is it Financial Freedom? Fuel that will Drive your Choices.
Rank these in Importance… “What would that choice do for me? What would it mean to me to be, have or do that?
- BIG WHY. I have the largest loving/meaningful life possible that Is beyond my Wildest Dreams. Napoleon Hill’s 12 Riches, Financial Wealthy being the last but not least. Limitless pursuit. Power and reach of your ever growing DESIRE/WHYs = Sustained Focus = Size/Level of Your Success in your Profession/Finance/Relationships. See how your prioritize/choices/answers help you fulfill your desires on your quest. When you say yes to something, you are also saying no to anything that resists/hinders. Keeping your eye on the Ball is a great way to avoid misspending/distractions. Reach exceeds your grasp–break through the brick. https://youtu.be/vrCJlrQZKxg?t=145
- BIG Goals, Models, Habits. Start sooner, Buy More! Move Swiftly, Life is Too Short my Friend. Know WHERE ur going and the BEST Path will appear. Goals are specific and measurable. Models represent proven systems and activities = Net Worth 5k = 20k = 175k = 250k = 500k… The Power of Future Pull. Know how much is coming in and out and try to pay things of Faster! Have 5 and 10 year Goals. 5 year = our Investments will cover our monthly nut after I retire in 5 years. High Achiever Daily Habits. https://www.inc.com/christina-desmarais/32-simple-daily-habits-that-separate-high-achievers-from-everyone-else.html 1. Do your Investing at the time you FEEL Like Doing It! 2. Be Ruthless about Distractions/email/social media/text/phone calls. 3. Make lists, stay on track. 4. Specific when it feels good.
- Money Matters. I had a lot of Energy and a Plan, it took me only 4 years to become a Millionaire. Buy every course you can find i.e Lease Options. Financial Wealth–you have enough money working for you that you no longer have to work for money.
Tape pictures of successful people for your Mastermind. Vision Board of Millionaire R.E Investors you wish to BEcome.
Money Matrix. Achieving True Financial Wealth or living shallow.
Capital–Earned Income/Money invested in anything expected to grow in value. Do you always designate a substantial portion of your earned income for direct investment into Capital?
Cash Flow–Money generated from those investments. (unearned income–reinvest lion’s share into Capital, the more you own the more you can afford!)
Cash Reserves–Money for security or future investments.
Consumption—Money spent on anything not expected to grow in value.
Game: See how much Unearned Income you can generate from your investments. Pour Cash Flow back into more Capital.
Small house, small car.
- How do I make money the Fastest?
- How do I make money the 2nd Fastest?
- Think a Million.
“There’s plenty of money, I can make as much as I want of it.”
Net Worth. TRACK: What you own/assets/Capital – what you owe/liabilities. Cashflow – unearned income(comes from Capital).
Take a Bank Loan Application–use to create Assets/Owned: Stocks, bonds, real estate, furniture, car, tools/machinery. Subtract all Debts/Liabilities = Net Worth. Monthly ask “What’s the best way to make that number grow?”
What if the rent they paid more than covered the property’s expenses and generated positive Cash Flow? Become a committed R.E Investor today for building your personal financial wealth/prosperity/livelihood.
Real Estate appreciates due to 1. Inflation(rising material costs) 2. Supply and demand–population growth.
Convert vacant lot into a parking lots and Convert apartment into condos are adding value through creativity. Attempt to find every properties hidden value.
Know Value (sales prices & rental rates)
Action. Financial posture–daily spending habits.
“Is this the best use for my money? Am I using my money like an investor or like a consumer?” Be a frugal shopper and be willing to walk away if you can’t find a good deal.”–Have good reasons, even for small stuff.
Always be alert for investment opportunities and constantly letting others know that you are. i.e “I Buy Houses” t-Shirt
Budget Shopping. Start with 80-100. Until receipt matches shopping list. Spend only on necessities/required not discretionary.
Action Step: Have 10-20% automatically deducted and put into money market account. When accumulate enough, buy another house.
Pay off the Sorento.
Sacrifices can be fun when connected to long term rewards.
Monthly allocate these percentages to their accounts…
Set up taxes account. 10%
Save/Investing 10% is fun
Keep your big expenses in check: Housing, food(organize food, plan meals), entertainment(frugal)
Before I make any purchase I will say “I’m an Investor, is this a purchase I would trade for my Hard Earned Ca$h?” If you only have $100 for groceries, that will be enough.
Net Worth. My assets (stocks, real estate(primary/investments), businesses, collectibles, etc), subtracted my liabilities (the total debt I owed on those items) = net worth. Weekly ask: (Now, how can I make that grow?)
“If I’m not going to make money, I won’t buy it.” – Jim Castagnari
“Create great networks of people wanting to help each other achieve success in life.” – Elmer Diaz
Visualize yourself surrounded by great people and start running in the right circles to attract and keep them. Be intentional in your work relationships and never settle.
Inner Circle. Mastermind–what they do for you personally. Give you advice on what to do or if you can’t who can. They will become your partner or find one for you.
Support Circle. They may even contract and manage some of those relationships for you.
Service Circle. Inspectors, drywallers.
“Interview your title company before you start. You can hire someone to go
get the unrecorded liens.” ??
Millionaires make getting into relationships with the right people before they need them their #1 PRIORITY. You may have to get 30 bids to find the right person for your team.
Build Your Network with 2 Questions
- Build before you need. Ask them “Who do you know that I should know?”
“I was told by a mutual acquaintance that you were the person to know
in real estate investing, and I was wondering if I might drop by and meet
you in the next few days.” – I met a lot of quality people fast
2. “What would you do if you were me?” If sounds good…. “I did it, and here’s what happened. What would you suggest I do next?”… if they warm up to this, give you additional suggestions, and over time, If I wanted, begin to mentor me. If their advice was quality, I would try harder to move them into my circle.
Maintain Your Circle
Relationship/communication and Reputation/track record = Deals
- Call them every month. “How r u doing?, I’m doing good…, & talk about R.E Investing. (2-3 calls/day u can talk to everyone in ur Work Network)
- Mail them something of interest/value monthly. i.e News article, interesting story or Advice on R.E Investing.
- Inner Circle–meet them every month & also pay them a personal visit/monthly. Go out to eat or even a coffee will do. Goal: Tell them what you’re doing, review ur Net Worth Worksheet & ask for advice and guidance. (3-5 Mentors– so 1 or 2 meetings/week)
Who am I calling today? seeing this week? mailing to this month?
5 Engagement Rules
- Do Deals. Play the game. Look for opportunities.
- Keep Your Word. Under promise, over deliver. Reliable–don’t miss appointments or show up late. Being where you say you’ll be and doing it.
- Don’t talk bad about anyone. No one trusts a gossiper.
- Don’t short change anyone.(time and money you agreed to)
- Refer work to your Work Network. Go out of your way to do this.
Lead Gen Model
Your Criteria – precise picture as possible. Make it clear so you recognize a deal when you see it. i.e I’m looking for a “well-kept three-bedroom,
two-bathroom single-story brick house with a two-car garage that was
built in the last 10 years and that can be bought below market value.”
- What you’ll consider (put this on the front end or the back end)
- What you’ll buy(qualify and eliminate)
Work w/Prospects, not Suspects, cause they will cost you a lot of time and money.
Location. i,e Consists primarily of single-family brick homes with three bedrooms and two baths, it’s important to know if a house with two bedrooms and one bath with siding tends to sell or rent for less. This kind of comparative pricing runs all the way from major features such as bedrooms, bathrooms, and square footage to smaller details such as vaulted ceilings and desirable landscaping.
People like privacy but also like access. Traffic. Residential street v,s across from commercial. Deep wooded v,s small tree lots. Cul-de-sac lots, and secluded lots are all desirable.
Lots that are zoned commercial or multifamily, even those adjacent to or near yours, can affect value favorably or unfavorably depending on conditions.
My property had access to utilities, while my neighbor’s did not. The current owner had more real estate than he could afford to hold, and to keep the rest, he needed to sell this property quickly. We bought it and began negotiating with the owner of the adjoining lot to trade access to my utilities for some of his land. It would have been a great deal for both of us, but unfortunately, it fell through at the eleventh hour. Forced to rethink our strategy, we rezoned to include retail development in addition to office. The lot still had access to utilities and was now even more desirable because retail property usually sells for more than office. A bank ended up buying the lot for about $1.1 million, netting me $640,000.11 …made possible by one factor—location, location, location.
Type. Single-family homes offer the most reliable demand and appreciation
while multifamily properties offer the best opportunities for cash flow.
When housing is affordable, rents go down and vacancies go up; this means houses are appreciating in value while rental properties and rents decline. But when housing becomes less affordable, the opposite tends to be true: Vacancies go down, and rents rise. (so neither is better than the other)
SFH are generally better for appreciation/net worth or MFH for streams of income/cash flow.
1. Price range wanted
2. Discount required
3. Cashflow expected
4. Appreciation hoped
Mid-market or even better low-end of the middle of the market is the sweet spot. Cash flow and perhaps appreciation from demand. Mid-market homes is where you will find the majority of renters and buyers.
With location and property type in mind, spend some time getting to know property values and rental rates. A: Habit of browsing newspaper and internet listings and taking notes.
A: Drive for dollars, drop in on open houses and inspect rentals. Call For Rent sign (agent, owner, manager), ask “Why is the property priced the way it is? How does it compare to similar properties in the neighborhood? What kind of person typically buys or rents this property? This will help your understanding of value.
Location. Favorable rental laws? Great school? Crime rate? Work, retail, and recreational centers nearby?
Type. Single/Multi/Self storage/mobile home park
Economic. Price range. Buy at a discount, at least 20-30%. Cash flow of a minimum of $200 a month/door after taxes, insurance, principal and interest, and property management.
- How much cash for repairs?
- How long will it take to put in rentable/sellable
- For big projects, how much risk? Discounts usually come from fixing other people’s problems. The seller doesn’t have money, time, or the motivation to fix and sell at higher ask price. That’s where we come in.
If you need to move walls you may find wiring or plumbing issues.
When doing foundational repairs, sewer line can be broken 20′ under the slab. $10-20k to chip n chisel n fix + 1 month holding costs. That’s why you wanna purchase at deep discount.
Construction. Siding repair. Know what your people want i.e brick exterior.
Features and Amenities. Number of stories, bed,bath, living areas. If all properties in your target location have 2car garage, then yours should. If you’re less then probably discount rent/price.
You don’t have to include them in your criteria, but keep them in mind. If property is missing a key feature, amenities may offset the deficit i.e 2 car garage converted into a bedroom.
You may have criteria for SFH in a certain part of town, you may have another set of criteria for vacant lots you’d develop or even fixer uppers you’d sell for quick cash.
You must have a clear, detailed picture/understanding of ur targeted properties in order to find them. i.e…
“I need your help. I’m looking for two-bedroom, two-bathroom duplexes priced between $125,000 and $150,000. Ideally, I’d like them to be close to downtown off Opportunity Square or on the main bus line in Overlook Hills. I don’t mind some cosmetic repairs, but nothing serious. I prefer brick construction if possible, and it would be great if there was a privacy fence. Please let me know if you see any properties that meet that description.”
… you could also include your discount and cash flow criteria, as that person probably are able estimate those.
Many investors niche to get rich i.e specialize in SFH, multifamily, land, new homes, rehabs, foreclosures, REOs, etc… You may want to find niche with low competition. After a while you can develop more criteria so you can adapt when opportunity in 1 area dries up.
Who you know. i.e I knew some people from a University that were selling some properties. Negotiate a deal before they are put on the market.
Gloria, his step mom, parlayed her job as a former executive assistant (Gatekeeper) to a bank president into a percentage of ownership of R.E LLC by introducing a wealthy bank client to a group of R.E Investors. She was given a piece of it & over time made her $500k.
Leads Network (Referrers)
People you’ve met, who are in your lead generation database and who you are in regular communication.
You want advocates, people you’ve met and absolutely will send you leads. Better yet are core advocates that are well positioned to find investment.
Millionaires Attract by:
Putting up websites, signs and billboards, mailing newsletters and postcards, and advertising in papers and periodicals.
Generally you prospect for properties that meet criteria and market to motivated sellers. Pick a couple of methods and see if they work for you.
Database(Microsoft Outlook/Excel): “Local Absentee Owner Mailing List” or “Multiple Property Owner Mailing List.” – Prospect/market with appropriate messages to encourage them to consider contacting you if they know of a property or a seller who might be an investment opportunity.
Your contractor may know of people looking to sell because they’d rather not do repairs.
Everyone, your neighbors, family, friends, coworkers, should know ur an investor.
Create detailed notes to their contacts & create categories to keep records of previous interactions & prioritize their contacts.
Touch/remind people constantly that you are an investor and ur criteria, they think of you when they come across opportunities.
Reward the referrer when it matches your criteria with an appreciative hand written note, small gift, finder’s fee or a piece of the action.
Sharing your APB
Hi, I’m now investing in real estate. Do you know of anyone that needs to sell or have you seen any properties like …” I’m looking for…”
I’d really appreciate it if you’d contact me at 575-9353 if you run across anything that matches that description. What’s the best way for me to reach you in the future? Can you think of anyone else I should contact? Thanks so much for taking the time to talk with me.
…Follow up w/Note. “Thanks again for taking time out of your schedule to speak w/me the other day. I really appreciate your help and…
The above can also be used when walking neighborhoods. “I’m an investor interested in buying property in this area. Do you know of anyone looking to sell their home in the future?” I buy houses(business card) or jot down their contact info for a followup note or call.
Share your goals, plant the seed for potential opportunity leads in the future. You might meet an attorney who is a trustee for bank foreclosures. Or a courthouse clerk w/access to valuable info. Or Investor, like you who fits strengths and work together.
Tell everyone you know or meet that “You are an investor and you are prepared to solve someone’s problem”, because your neighbors house could be sold on court-house steps because of tax liens or foreclosure.
Local newspaper R.E listings, internet sites, and property records @ courthouse.
R.E agent – auto emails that are in your target area.
Courthouse foreclosure – use paid info providers who supply detailed listings.
Market for Leads
• Business Cards
• Direct Mail
• Targeted Letters
• Newspaper Ads
• Magazine Ads
Maybe the house was inherited and has more fix-up than the owner cares to deal with. Family situation has changed and needs to move to larger or smaller home quickly. Job in new town or lost a job and needs ca$h.
I am not the problem, but I may be a solution if they can meet your terms. i.e Guy is losing his properties, but want’s to save his credit. I take over the properties, their debt and payments w/quick claim deed. Net profit to me $85k, give seller $15k and save their credit.
Investor – my goal is to remove risk from the transaction. “I’d love to help out but I have to get appropriate discount or Terms/Strict Criteria or can’t do the deal. It may not be what they want, but maybe their best option.
Marketing: you should always send your message about being a solution to other people’s property problems. i.e Massive targeted mailings to subdivisions and neighborhoods ; advertised
in newspapers and real estate journals ; distributed flyers, put
up signs and billboards, or handed out their real estate investor business
cards everywhere they went ; obtained courthouse or publicly available
lists of out-of-town property owners, local landlords and in one case, minority owners in companies that held real estate.
…These groups were all sent tailored messages designed to announce a solution to their potential problems and attract motivated sellers.
out-of-town homeowners were sent highlighted the problems of managing a property long-distance, such as screening renters, managing maintenance contractors, and dealing with routine upkeep.– your someone who can solve this problem… maybe 2-3/100 will inquire about your Terms = opportunity to make a deal.
You buy properties. pay cash(funds), and can close quickly. I have lines of credit & quick private financing, in days/hours can have a Cashier’s Check for closing.
Which properties are the REAL opportunities?
Make sure it meets the most important points of your criteria.
You can have realtor/contractor and give you your opinion–if deal works out, reward them by hiring them.
You can get a rough idea of what properties sell/rent for by looking at the current area listings. In time you will know which aspects of your Criteria count the most toward market values and rental rates.
Why some sell for 15k more, or rent for 150 more down the street.
Always refine your criteria and reap the tremendous rewards by understanding your market.
- Never compromise–Is this a great deal? Yes or No. Must meet your STRICT Criteria and Terms.
- Shopper/Hunter–Thrill of the hunt, putting up signs, the process is as good as the profit. You wanna buy for less than what it’s worth. Buy GREAT Deals!
- First/Last. “Have you ever considered selling that property?” and have hair trigger if meets criteria. Same is true @auctions.
- Numbers game. For every 30 that meet your basic criteria(suspects), 10 turned into serious investigation(prospects), 3 turned into making offers on & because Strict Terms, 1 turns into a deal. Beginners look at 3-5x’s as many. Cast a wide net.
- Organized/Systematic. Dedicate a Set amount of time EACH Week for Lead Gen and block that time so nothing prevents it. Investing: time for Prospect for leads, marketing & track results. When people call you w/opportunity, ask them where they heard about you. Record their answer. Contact those people & touch regularly. Saves you time and money and you also see the gains.(Wealth building activity)
A: Budget so you have money to invest. i.e Checking accounts for saving/investing(Ameritrade/DwnPay R.E), emergency, taxes, business, personal(entertainment, health, travel, etc.
A: Setup Personal Balance sheet to track progress of Net worth: Cash Flow growth and Equity buildup.
A: Build my Network/team to mentor/support me and service my investments. i.e Wholesaler signs–call them.
Cash(building) or Cashflow and Equity(wealth-buy&hold) i.e optioning, assuming, rehabbing, long-term investing, quick-turn investing, wholesaling, wrapping, lease optioning, and fixing and flipping.
1. Finders fee
2. Purchase and assign(more negotiating power
3. purchase and sell(more time
4. purchase, fix and sell(most time
Lease(rent) Option. Lease usually 2-5 years w/option to buy @end@prenegotiated price. You may or may not have to down pay(little/no money). You can lease to a buyer via middle man spread(Cash flow). The Spread between buy/sell price(Equity). [This is a WRAP Lease Option] Key is to have renter lined up BEFORE you agree to lease option the property.
Lease Option OUT. As OWNER you rent to tenant, who possibly needs to clean up his credit, w/option to buy @end.
BUY and HOLD. Unlike lease option, you are no longer bound to a predetermined sales price and may sell at any time.
BUY, Improve & Hold. Opportunity for additional upside in higher rents and equity build up. Improvements can be physical, zoning or use i.e converting residential to commercial or apartments to condos. Some of physical improvements may be “capital improvements” and may reduce taxes you pay on cash flow.
Buy n’ Sell: Follow this Exactly
Many Flippers mistake the ARV… they should be thinking FARV (Fast Sale). What the house will sell for within 2 Weeks on the market.
2nd safety is Profit Margin as high as 30%. If property is 150k+ you could use 30-40k flat price.
- Stick to your buying criteria, even if you’ve went a long time w/out buying.
- Don’t underestimate the repair cost, thinking it just needs paint and carpet.
The sheet above is more of a checklist so you don’t forget to pay i.e finders fee, closing costs, etc.
Cost of Repair worksheet: property to “Homeowner Standards”, you can’t do it halfway. Allow for contingency/fudge factor.