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LEARN THIS SIMPLE 4-STEP SYSTEM:
FINDFUNDFIX&
FLIPAND SEE HOW EASY IT IS TO PUT CASH IN YOUR POCKET!
Disclaimer
This information is designed to provide general information regarding the subject matter covered. However, laws and practices often vary from state to state and are subject to change. Because each factual situation is different, specific advice should be tailored to the particular circumstances. For this reason, the reader is advised to consult with his or her own legal, accounting or other professional advisor.
The presenters have take reasonable precautions in the preparation of this information and believes the facts presented in the written and audio material are accurate as of the date it was produced. However, the presenters assume no responsibility for any errors or omissions. The presenters disclaim any liability resulting from the use or application of the information contained in this manual and all accompanying audio, video and written media. The information is not intended to serve as legal advice related to individual situations.
TABLE OF CONTENTS
1.MINDSET TRAINING
2.FINDING DEALS
3.FUNDING DEALS
4.FIXING DEALS
5.FLIPPING DEALS
6.CASE STUDIES
Twenty years from now, you will be more disappointed by the things you didn't do than by the ones you did. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover. ~ Unknown
GOLDEN RULE:
If it makes good business
sense, then do it.
If it does not make good
business sense, then do
NOT do it. Period.
WHAT ARE THE GOALS
OF THIS WEEKEND:
-To teach you the Basics of Finding, Funding,
Fixing & Flipping Residential Real Estate Deals
-To provide you with many of the required tools &
resources so that you can confidently begin to
obtain success Finding, Funding, Fixing &
Flipping Residential Real Estate Deals
-To show you that you are in control of your
success in Finding, Funding, Fixing & Flipping
Residential Real Estate Deals
MINDSET
Everyone takes the limits of
his own vision for the
limits of the world.~ Arthur Schopenhauer
MINDSET
WEALTH PRINCIPLE
T F A = R
Thoughts lead to Feelings
Feelings lead to Actions
Actions lead to Results
Make Mistakes Of Ambition , Not Mistakes Of Sloth
MINDSET
Thoughts are derived from Past Programming
So, we must change our Past Negative Programming
MINDSET
STEPS FOR CHANGE:
AWARENESS: Write down statements you have heard and beliefs that you have about rich and successful people
UNDERSTANDING: Write down how you believe these statements have affected your financial life so far.
DISASSOCIATION: Can you see these thoughts represent only what you learned and are not apart of your anatomy and NOT who you are? Can you see that you have a choice in the present moment to be different and change the course of life for yourself, family and others?
DECLARATION: Repeat: “What I have heard about money isn’t necessarily true. I choose to adopt new ways of thinking that support my happiness and success”
MINDSET
STEPS FOR CHANGE:
MODELING:
Seek Mentors who are in the physical, spiritual and financial positions you desire to be and duplicate what they have done.
Once you have their same mindset, it is not that difficult to do the same. (PROPERLY APPLIED ACTIONS = DESIRED RESULTS)
Mentors, may come from different areas:-History-Authors-Locally/In Person
Success in life is determined by your ability to go from failure to failure without loss of enthusiasm.~ Winston Churchill
MINDSET
WEALTH BELIEFS
Rich people believe “I create my Life.” Poor People believe, “Life Happens to Me”
Rich people seek first to understand; Poor people seek first to be understood
Poor people like comfort zones; Rich people like discomfort zones
Rich people believe things happen for them;Poor people believe things happen to them
Rich people do the opposite of what poor people doPoor people do exactly what poor people dothey’re not smart enough.
Rich people think BIG. Poor people think small.
MINDSET
'Now' is the operative word. Everything you put in your way is just a method of putting off the hour when you could actually be
doing your dream. You don’t need endless time
and perfect conditions. Do it now.
Do it today.Do it for twenty minutes and
watch your heart start beating.~ Barbara Sher
MINDSET
FINDING DEALS
•Classified Advertisements•No Real Estate Firm involved, so home owner is developing their own ‘value’•Less Competition
•Local Real Estate Magazines•Good Place to find Real Estate Agents
FINDING DEALS
•REAL ESTATE AGENTS•Never stick with only 1 agent•Try to find agents who are themselves agents•“Train Them”…they work for you•Make sure they ‘speak your language’ Numbers….DOM, ARV, etc•Look for Rookie’s (they’re hungrier)
•MARKETING FOR SELLERS•Bandit Signs•Driving for Dollars•Billboards•Flyers•Newspaper Ads•Car Signs•Direct Mail
•Post Cards & Letters
FINDING DEALS
•INTERNET•Squeeze Page•Ad Words•Websites
•www.HoustonCashDeals.com•www.Har.com•www.MyHouseDeals.com•www.Craigslist.com
FINDING DEALS
FINDING DEALS
WHOLESALERS•This is the most ‘hands-off’ approach and the MOST recommended for those seeking to be ‘true’ investors and those wanting to focus on investing
•What is a Wholesaler?•They specialize in finding discounted real estate deals for investors
•Where can you find Wholesalers?•Networking groups•www.NetworthRealtyUsa.com•Meet as many good wholesalers as possible and get on as many email lists as possible•Referrals from Active Investors
Example of a good wholesaler Deal….
FINDING DEALS
•Don’t go to look at deals unless you already know the numbers make it a deal
•Making Offers
•Use Negotiation Techniques
•Personally, we don’t like to look at deals unless they are under contract and we have already seen pictures, comps and a repair estimate
•Know the key statistics of the particular market•DOM•Months of Inventory•No of Foreclosures•Features of similar properties that have sold recently
FINDING DEALS
•There are people in this room tonight that can provide you enough deals to keep you busy for a very long time….
•DON ’T BELIEVE IN THE SCARCITY MENTALITY•The deal of the decade happens every day….
•Finding the right deal is the Foundation of a profitable deal. It all starts here
FINDING DEALS
•There are people in this room tonight that can provide you enough deals to keep you busy for a very long time….
•DON ’T BELIEVE IN THE SCARCITY MENTALITY•The deal of the decade happens every day….
•Finding the right deal is the Foundation of a profitable deal. It all starts here
FINDING DEALS
RECOMMENDED READING
REAL ESTATE RICHES-Dolf De Roos
How to get started in Real Estate Investing-Robert Irwin
FINDING DEALS
FuNDING DEALS
FuNDING DEALS
DON’T BE STOPPED BY LACK OF CASH
Perhaps the most used-or overworked-excuse given for not investing in real estate today is,
“I’m waiting until I get enough money together to start.”
Money is NOT what you need most.
CREATI VE THINKING is what you need.
MONEY IS ATTRACTED TO GOOD DEALS AND SAAV Y INVESTORS
FuNDING DEALS
DIFFERENT FINANCING OPTIONS1.Cash2.Conventional Financing3.Subject-To4.Owner Financing5.Hard Money6.Private Money
FuNDING DEALS
CA$H•Best Used When It Comes From Other
People
•In today’s market, you must know how to properly leverage real estate and business transactions
•“Cash is King” still applies, but would be better stated as, “Those with Access To Cash are King”
FuNDING DEALS
CONVENTIONAL FINANCING
•More difficult to obtain in today’s market, but If you can get approved, use it for Long Term Wealth and Cash-Flow
•Develop relationships with bankers
•In time, seek blanket & portfolio loans
FuNDING DEALS
SUBJECT-TO
•Buying “Subject-To” means that the sellers’ loan remains in place, you are not assuming it. You are simply making payments to it
•Typically better for rentals…not flips
•Be informed of the Due On Sale Clause, but not fearful
FuNDING DEALS
OWNER-FINANCING
•This can be the one of the preferred types of financing when you learn to negotiate good terms, like the following:
•Long-Term PayOff•Low Interest Rates•No “Due on sale” clause•No Prepayment penalty•No late fee in note•Accrued Payments
•Only limited to your imagination….
FuNDING DEALSHARD MONEY
•Most Popular form of financing for Flips
•Must have an exit strategy
•Build Relationships
•Don’t let the interest rate discourage you from doing the deal
Things To Consider:-12-15% interest / Credit Score May Be Needed / Down Pmt / 1 exit strategy / Possibly No Up-front Fix-up money
FuNDING DEALSPRIVATE MONEY
First:Who Are Private Lenders?
-Basically, “Everyday People”
Some are retired, some work, some are rich, some just have a little IRA money that they are not using
FuNDING DEALS
PRIVATE MONEYWHY USE PRIVATE LENDERS?
-Speed-No Credit Check-Cash-Flow (accrued & lower interest)-Better Deals (with cash)-Close more deals-No Down Payments-No Pre-Payment Penalty-No, or fewer points-Reduced Closing Costs (or, make some gravy!)
-YOU SET THE RULES!
FuNDING DEALS
PRIVATE MONEY
Methods of finding Private Lenders:
-Family Members and friends-Newspaper Ads (be careful)-Flyers (be careful)-Seminars-Networking
-Entrust-Word of Mouth
Establish Credibility…
FuNDING DEALS
Create a free report…
FuNDING DEALS
Houston Capital Group Special Report
Are You Expecting Social Security To Provide Your Retirement?
Dear Friend,If the answer is no, and I’m sure it is, please pay very special
attention because the following information could make you thousands of dollars in the coming years simply by increasing the yield on the same money you’re investing now.
We are professional and qualified Real Estate Investors and would like to spend the next few minutes talking to you about a way you can control your investments and safely make them grow at three to five times your current rate. Yes, I know it sounds too good to be true, but it isn’t. What I’m going to share with you is very common in real estate circles and has been going on right under your nose in every city in America.
Smart people have been utilizing this investment for years. In fact …
There Have Been Entire Companies Built Around This Investment and Those Who Do It Properly Have Grown to Huge Proportions.
See HCG free report in attachments…
FuNDING DEALS
Establish Trust
& Credibility
Here is an example of a power point presentation we have used with our Private
Money Lenders….
FuNDING DEALS
Private Lending In Your IRA or 401(k)
What’s in it for you?• Fixed Minimum Returns
• High Yields
• Secured and Insured Investments
• Earnings are Tax Deferred or Tax Free
Your Protection
You Receive:• Note
• Deed of Trust or Mortgage
• Hazard Insurance Policy
How It Works
These are the Steps:• Houston Capital Group will locate a
property to buy at a significant discount below market value
• Houston Capital Group approved investor will borrow funds from private investors to purchase and renovate the property.
• Investor will sell the property for profit or hold the property for cash-flow and potential appreciation.
Private LenderPrivate Lender contributes funds for purchase and renovation
PurchaseTransaction occurs at title company with Title Insurance and 3rd Party Property Appraisal.
Renovation/Resell or LeaseInvestor manages the rehab and resell/leasing of the property
Property SoldPrivate Lender receives payoff upon closing
Lease of PropertyManagement Company will put Tenants in place,
maintain the property and handle accounting
(including payments to your 3rd party
administrator). Title of the policy will typically be
held in LLC for asset protection and management
purposes.
Holding PeriodPrivate Lender can either hold the note for long
term (2-5 years), or investor will utilize a bank or
credit partner to refinance into a permanent loan to
cash the lender out.
How Can We Buy Houses So Far Below Market Value?
• We specialize in distressed properties that usually need renovation.
• We know where to look, what to buy, what NOT to buy and how to renovate.
• We create value by purchasing “ugly”, vacant homes and turning them into clean and functional family homes.
Client Selects From Available Terms
• Cities or Specific Properties
• Term of Note (6 months to 5 years)
• Monthly, Quarterly, Annual or Accruing (balloon) Interest Payments
• Maximum Loan-To-Value is 75%
– Based on ARV (After Repaired Value) appraisal
– Typically, our deals are even below 70% of value
What If I Don’t Have A Large Balance In My IRA?
• 1st Position Notes start at a minimum of $50,000.
• Junior Position Notes start at a minimum of $10,000
• If you have less that the minimum, we may be able to create a custom investment to get you started.
Example Project
BEFORE & AFTER
BEFORE & AFTER
BEFORE & AFTER
BEFORE & AFTER
More Pictures…
More Pictures…
Financial Breakdown Of Project
$52,000 Purchase Price
+$20,000 Renovation Costs
+3,000 Closing Costs
= $75,000 Total Cost
Private Loan from investor: $77,000
Loan-To-Value Ratio: 70% based on $110k ARV Appraisal
Earnings Comparison Example
CD or Money Market
• May Have Early Withdrawal
Penalties
• 3% Interest
• Total Earned: $2,550
• Annualized Yield: 3%
HCG Private Lender• 1st Position Deed of
Trust• No Early Withdrawal
Penalty• 6 month Note (or
longer)• 1.5 points Upon
Funding - $1,275• 12% Interest =
$5,100 after 6 months
• Total Earned: $6,375• Annualized Yield:
15%
What Happens If My Note Matures And HCG Is Not Ready To Fund My
Payoff?
There are multiple exit strategies:
• We can offer you a Note renewal
• We can re-finance your Note with another lender
• We can bring in a credit partner to refinance
• We can sell the property quickly at a discount to another investor
Why Invest In The Houston Market?
>New Home Construction down 61% , but Population is increasing by over 100,000 per year!
(Projected to be 11.7 mil (double by 2040)
>Light Rail Project Approved $1.6 billion project>UTMB- $1.4 billion planned expansion
>Port received $140 mil stimulus for repair/expansion
>1st time home buyer Tax Credit> Fixed low rates and 'low prices‘ compared to East & West Coasts
>General public is beginning to understand (or they're being incentivized by Gov't)
that it is a good time to buy>Possibly increase $8k credit to $15k AND, Open to everyone!
>Inventory 2009: 45,282 (6.2 months) This is extremely low!!!> *National Average: 10-12 months
>10 most undervalued markets: Houston is #6 (-36.9%)!>Lowest industrial vacancy 8.9% (3rd in nation)
>Rent rates up 16%
>Gov't, Industrial & Multi-Family construction increasing…This means jobs!
What Happens If HCG Goes Out Of Business?
• Your funds have been invested in a property that is now renovated and probably tenant
occupied or ready for resale
• Your investment is secured by the property at a maximum of 75% of its value
• You could sell the property or retain it in your IRA as an investment rental property and
make more money than you did as only being the private lender!
• Lastly, HCG is only a consortium of investors and Houston area real estate professionals, so you would have a network of other investors should Brant or Jack no longer be available to
provide you any deals
A little more about us…
• Brant Phillips - Co-Founder of Houston Capital Group, Brant has purchased, rehabbed, rented and sold Houston housing for himself and partners with great success. He has personally purchased dozens of investment properties in the Houston Market and works with investors to achieve above market returns with their Real Estate Investments.
• Brant takes great pride in transforming a house that has little value to it’s owner or the community and turning it into clean and functional, affordable housing. As a licensed contractor and co-owner of RentReadyContractors.com, Brant helps his project managers oversee rehabs, make-readies and property maintenance for Houston Real Estate Investors. Brant is a former police officer who prides himself on integrity and serving others. He is a husband and father of two and he also holds a Real Estate License in the State of Texas.
A little more about us…
• Jack Mize - Co-Founder of Houston Capital Group and founder of HoustonCashDeals.com and RentReadyHouses.com. Jack has spent the last 6 years involved in purchasing, rehabbing, landlording and mentoring other investors to successfully build assets and better than average cash flow investing in low income affordable housing.
• Jack is a licensed real estate agent that specializes in the acquisition of below market properties and turning them into safe, clean and functional homes for Houston families.
Establish Your Personal Private
Money Rules:
1. Loan Minimum’s2. Accrued Interest (unless it is a rental)
3. 1 Private Lender per promissory note4. 70% LTV5. ALWAYS KEEP YOUR WORD!
FuNDING DEALS
More….
1. Use a Title Co or Third Party Administrator
www.EntrustTexas.com
2. Did we mention Accrued Interest?
3. Be sure to get the repair money UP-FRONT, if possible
3. ALWAYS KEEP YOUR WORD!
FuNDING DEALS
SECHere are some of the essentials to help you understand being in
compliance with SEC laws, rules and regulations:
•Real estate investors are offering private lenders securities when
they ask them to lend their funds.
•Securities must be offered either under an exemption or by
registration with the state.
•Every state has its own securities regulator and its own set of
laws, rules and regulations.
•As long as you only work within your home state, you can use a
home state exemption or registration and a federal intrastate
exemption.
•Many students work in states that don’t require any filing when
using an exemption, including when you stay under the threshold
number of private lenders to whom you offer or sell securities.
•Other states do require filing paperwork.
•When you cross state lines, the Federal SEC gets involved with
its own set of laws, rules and regulations.
•It’s legal to advertise securities, as long as you do so in
compliance with appropriate securities laws.
FuNDING DEALS
RECOMMENDED READING
Investors in your own backyard-Asheesh Advani
How to get all the money you need to buy property-Alan Cowgill
FuNDING DEALS
FIXING DEALS
FIXING DEALS
PUT DOWN THE PAINTBRUSH
ARE YOU AN INVESTOR OR A HANDYMAN?
FIXING DEALS
Hard work pays off in the future,
laziness pays off now.
~ Steven Wright
FIXING DEALS
Learn to delegate.
~Brant & Jack
FIXING DEALS
No.
Really.
Learn to delegate.
~Brant & Jack
FIXING DEALS
Working with Contractors…
This One Can Be Tricky…
Because, Contractors ___________
FIXING DEALS
3 Levels of Contractors….
FIXING DEALS
LEVEL 1
FIXING DEALS
LEVEL 2
Remodel and More
John Simpson
(832) 483-3757
C&S Construction
832-443-7753
Gareth Construction
Bruce Cox
(832) 435-7030
www.garethconstruction.com
Patchman Specialist
Richard Riley
(713) 812-1286
www.patchmanspecialist.com
Renovation Masters
John Perry
(713) 705-5378
FIXING DEALS
WORKING WITH CONTRACTORS
•Look for ‘Turn-Key’ Options
•Use Written Agreements
•Be Specific
•Time Date Work Completion (some exceptions)
•Don’t Forget to Budget in ALL Items
•Build Relationships
•Systematize or ’COOKIE CUT’ Your Rehabs
FIXING DEALSWorking With Contractors, cont’d
Here are some tips for successfully working with contractors.
Know What You Want –
Have a Documented Scope of Work
NEVER PAY A CONTRACTOR IN FULL UP FRONT
•You can put a deposit down, but no more than 50% I like 25%
depending on the job and size. I will say that it is safer to use a
contractor with a good credit line and insure, even though it may
cost more.
•Know the plan for repairs
•Foundation is first and foremost
•The second major improvement is the roof.
•Making a property modern is inexpensive.
•Replace all brass fixtures and install brushed nickel or
stainless steel.
FIXING DEALSWorking With Contractors, cont’d
Don’t Believe Everything Rotates Around You.
•You may/should not be the only client of the contractors so
sometimes they may have to leave your job to handle warranty
work for another client, or they may have to check the progress of
another job. We should all be aware of, start time changes and
they may have unexpected things come up as well. In Houston it
can rain for several days in a row.
•Temperatures also matter — it might be too cold to paint, for
example. Even indoor work can have such delays — sometimes
wood that gets installed indoors (floors, cabinets, etc.) needs time
to dry out warm up or otherwise get comfortable before being
locked in place.
•Also a job could get held up because the contractor is waiting for
the cabinets to be installed before flooring can be put in.
•Make sure you are speaking the same language as the
contractor. When they say the job will be done in 15 days, is that
business days or is that 2 weeks. When using a good general
contractor they know how to keep work flowing versus you hiring
the sub contractors on an individual level.
•This can slow you down & cost you more money in the long run.
FIXING DEALSWorking With Contractors, cont’d
You Can be a Bigger Problem than Solution
•Watching a contractor work on your property is not a good idea.
• You hired them, now let them work. If you do a walk through
before the contractor is done it could create problems for both of
you. Unless you see something major don’t bring it to the
contractor’s attention.
•Keep your scope of work and your bid from the contractor with
any change orders, and do your final walk through when the job is
near completion.
•This is when you create a punch list for the contractor to finish
up.
•DO NOT make a final payment and get a release from the
Contractor until ALL work is done
FIXING DEALSWorking With Contractors, cont’d
Always Pad Your Rehab Budget(Don’t Forget the gravy!)
•Every house has a surprise for you just waiting to be unwrapped.
So make sure you pad the rehab budget 10% to cover any thing
that may come up.
•Be prepared to pay with every change order you make.
FIXING DEALSWorking With Contractors, cont’d
Not All Contractors are Bad and Out to Get You
•We have all heard the horror stories of contractors that ran off
with some ones money. This is why we suggest you get 3-5
quotes. Don’t just look for the cheapest contractor, there are
many things to consider.
Example:If it took you 3 calls to get a vendor to come out
and then 5 more calls to get the quote they may be too busy for
the work at this time.
If you call and they seem too hungry this could be a
concern as well.
•Weigh all options & remember contractors are in business as
wellmers.
•As investors we are a repeat business for them. So they want to
do a good job for us.
•Be sure to check references before hiring a contractor,
• In all your communication always be respectful of the contractor
as a person and a business owner and their time, and they should
respect yours as well.
FIXING DEALSWorking With Contractors, cont’d
How to Find a Good Contractor
•Investor contractors are not always the same as retail
contractors so make sure you know the differences.
•Investor contractors frequently do not, have a full team of staff
behind them such to take care of customer service, accounting
and so on. They usually have less overhead and pass the savings
on to you.
•Do try to find a contractor you can communicate with easily.
•Do find someone you trust and understand.
•Don’t just rely on one source for contractors.
• Ask around. Talk to other investors and find out their experience.
•Make sure you do your due diligence and make sure the
contractor you are working with knows how to pull permits, or deal
with those areas requirements.
FIXING DEALSWorking With Contractors, cont’d
•Remember, as you are hiring contractors, they are evaluating
you as well.
•Do they want to work with you, or will you be a pain in their rear?
•The door swings both ways....A contractor is a very important
member of your team especially if you plan to continue investing,
so work on long lasting relationships.
•But be aware and always shop around for your contractors. This
will keep you on your toes and the contractor as well.
FIXING DEALS
PUT DOWN THE PAINTBRUSH
ARE YOU AN INVESTOR OR A HANDYMAN?
FIXING DEALSRehab From An Investors Point of View…
•Know what needs to be done to the home based on
that particular market
•Consult with established Realtor’s who know
the area
•Use Colors/Schemes that work (systematize your
rehabs)
•Avoid ‘HGTV’ Moments…
•Stick to basics/clean&functional
•*Unless in upper end market
•Consult with Realtor’s BEFORE Project begins
•Add compelling reasons to buy/rent and eliminate
issues that may prevent a sale/lease
•Do Not OverRehab
•Do Not UnderRehab
There is a fine line between profit & loss
This is a critical point….a simple, but fine art
FIXING DEALSFLIP BASICS
•-Update All Fixtures
•Faucets
•Knobs
•Lights
•New Flooring
•Some hard surfaces can be kept
•New Paint
•Plugs/Switches (or at least the covers)
•Get rid of ALL eye sores!
•Eliminate all of the reasons someone may
NOT want to buy the home
FIXING DEALSHITTING THE EMOTIONAL TRIGGERS
•Start with Curb Appeal
•Create an impactful 1st Impression
•Open Floor Plans
•Match Tones throughout the home
•Storage Space
•Visual the property through someone else’s
vision
•Create a home with VALUE and a product
that someone would be proud to call their
home
•Do the math before making a repair.
•If the expense will provide at least a 20%
ROI and lower DOM.
•Then it may make good business sense…
FIXING DEALSOTHER WOW FACTORS
•Granite
•New Cabinets
•Stainless Appliances
•Recessed Ligthing
•Vaulted Ceilings
•French Doors
•Slate at the entrance/back patio
•Decks
•Front Entrance
•(This is a ‘holding’ area upon first visit)
•Landscaping
•Does not have to be overdone.
•But it MUST be Clean & Green and maintained
(during entire holding period)
FIXING DEALSUSE INDUSTRY STANDARDS….
FIXING DEALSDon’t Forget Anything….
FIXING DEALS
RECOMMENDED READING
Flip-Rick Villani, Clay Davis, and Gary Keller
Investing in Fixer Uppers-Jay P. DeCima
FLiPPING DEALS
FLiPPING DEALS
RENTINGMARKETING
-Start During Rehab-Ad in the Greensheet & a Sign in the yard-Keep home and yard clean-Outsource if possible-Systems: www.Apply4Free.net
PRICING-Price just below comparable rents in the neighborhood-Collect Rent & Deposit Up-Front
MANAGEMENT-Use individual checking accounts-Don’t call yourself the owner-Have disqualification guidelines, but NEVER disqualify
anyoneScreening Tenants
www.PublicData.comwww.NTNHouston.com
-Send 3 Day Letter first day they are late and file eviction-Put a repair fee for tenant
FLiPPING DEALSRETAIL
MARKETING-(Almost) Always use a Realtor
-You can try a FSBO sign during rehab*Depends on market, etc
-Flat Fee vs. 3%
-Creative ways to make a house attractive to buyers (not physically)
-Seller Concessions-Rebates-Seek ways to obtain higher profit with attractive
terms
PRICING-Know your market-Best Product / Best Price-Know when to hold them/know when to fold them….
You can’t go broke taking a profit!
FLiPPING DEALSRETAIL
STAGING-Usually not necessary-Basic staging is typically adequate
INSPECTION REPORTS-How to handle buyer requests for repairs-All safety and liability issues must be addressed-Use Negotiation strategies to keep the buyer interested in the home, but do as little as possible
FLiPPING DEALS
RECOMMENDED READING
Landlording on Auto-Pilot-Mike Butler
Section 8 Bible, Vol. 1 -Michael McLean and Nick Cipriano
Perpetual Income,: How to generate income from Low End Houses-Bryan Wittenmyer
The ABC’s of Property Management-Ken McElroy
CASE STUDIES
PURCHASE: $235,000
REPAIRS: $27,000
LOAN AMOUNT: $290,000 (covered all closing costs, taxes (10k) and 1 point paid back to lender)
Rehab time: 30 days
Days On Market: 5 hours
Sales Price: $389,000
-Realtors, Points (4 total), etc
CLOSING DATE OF PURCHASE: Oct 13
CLOSING DATE OR RESALE: Dec 14
CASE STUDIES
Purchase: $47,000
Rehab: $4,000
Private Money Loan Amount: $65,000
Rehab time: 9 days
Days On Market: 0
PITI: $825
Rent/Option: $1390
Cash-Flow: $565
Cash In Pocket When We Bought: $12,000
Value: $110k
CASE STUDIES
Purchase: $36,000
Rehab: $20,000
Private Money Loan Amount: $65,000
Rehab time: 40 days
Days On Market: 4
Cash In Pocket When We Bought: $7,000
Sales Price: $87,500
CASE STUDIES
Purchase: $20,000
Rehab: $14,000
Private Money Loan Amount: $40,000
Rehab time: 30 days
Days On Market: 0
Cash In Pocket When We Bought: $6,000
Value: $70,000
Cash-Flow: $200
CASE STUDIES
Purchase: $28,000
Rehab: $21,000
Private Money Loan Amount: $65,000
Rehab time: 35 days
Days On Market: 0
Cash In Pocket When We Bought: $16,000
Sales Price: $77,500
$27,000
Who wants to
partner on one
of our Upcoming
Deals?
Partner with Brant & Jack
Partner with Brant & Jack
How will this work?
-We will randomly pick 3 names from this class.
-You must be in attendance to win
-On one of our upcoming deals, we will hold a teleconference and
walk-through of the property to discuss numbers, rehab, pricing
and market strategy
-Winners will not be required to provide any financial commitment
but may assist in the process as much as desired to further their
own education
*Partners may join in the process, but they will not
collect proceeds from the sale
-Winners will be included in the entire process of the deal
-Winners will sign a Joint Venture agreement with the Houston
Capital Group and will receive a 10% of the gross profits upon
closing
*Partners may join in the process, but they will not
collect proceeds from the sale
