Jdig education presentation

Skyline Properties, Inc. Liberty Capital


Broker, Investment Specialist Broker, Investment Specialist


• Curiosity

• Take action to start investing

• Build financial security

• Confidence in real estate investing

• Knowledge


• Information database

• Financial backing

• In-house rehab contracting services

• Property management services

Years of investing success & rehab experience



• UGLY homes are great!

• Think long-term

• Know your market

• Understand the risks


• Some of the best returns come in

moderate to average neighborhoods

• Don’t be afraid of a little work

• Know the area demographic


• NOT a “get-rich-quick” business

• Every deal is not a homerun

• Careful and Methodical wins the race


• Be cognizant of market trends

• Where are the first time Homebuyers

buying at

• Choose to invest in areas where the

median family income can buy


• The only guarantees in life are DEATH &

TAXES!

• Treat real estate investing like a

business

• Don’t let pride cloud your judgment


Pros:

• Quick in-and-out investment.

• Return on Investment of 30% or more (in 4 month or less

period).

• Easy to qualify for bridge loan to purchase at auction

15% down.

• Only 2% for hard money (as opposed to industry

standard of 5%).

Cons:

• Need larger margin than rentals and can sometimes be

difficult to win at auction due to competition.


• The rental market is hot right NOW! Take as much

advantage of it as possible.

• Less risk, with higher long-term returns

• You will cashflow now, gaining monthly income (with up to

10 homes, $3,500 to $6,000+ per month)

• Hands off- Passive income (Property management takes

care of all tenant needs and hassles)

• You will build equity into the homes

• Future sale of homes will bring large payoff - much larger

than flipping now


• We can structure the deal so you can either:

a. Get your down payment back, or

b. Apply their down payment towards the fix up costs, so no

further money comes out of the buyer's pocket after

purchasing.

• You will win more bids and buy more homes, since we don't need as

large of a margin as flipping

• Tax benefits (Depreciation, interest write offs, etc)

• We've leased out over 100 homes in the last two years, so there is

100% confidence that any home a client buys will be rented out within

45 days after fix up is complete to get you into buying another one

and building a portfolio."



Pros:

• Great deals, sometimes 70% of retail price or less

• Hard money loans easy to get approved for (based on property

value)

• Immediate ownership after auction

Cons:

• Not always able to see inside of the home before purchasing

• Need 18% cash at time of purchase

• If owner, 21 days until possession. If tenant, 60-90 days until

possession or cash for keys

• No contingencies, once purchased it's yours!


Notice of Default

Auction

Postponed

Sold to Bank

Sold to 3rd

Cancelled

Trustee’s Deed

90

Days

Notice of Trustee

Sale

30

Days90

Days


Notice of Default

90 Days of missed

payments to your loan

servicer

While the homeowner must receive a “Notice of Default”, it is not

commonly recorded in Washington state, and therefore not

tracked in foreclosure radar. RCW 61.24.030


Notice of Trustee Sale

Trustee sets auction date.

Recorded at least 30 Days

after the Notice of Default.

RCW 61.24.030(7)


AuctionInitial auction date. At least

90 days from the Notice of

Trustee Sale.

RCW 61.24.040(1)(a)


Auction

Postponed

Sold to Bank

Sold to 3rd

Cancelled

Sale occurs on Friday.RCW 61.24.040(1)(a)

Sale occurs on a Friday.RCW 61.24.040(5)

Auction may be

postponed for 120 days.RCW 61.24.040(6)


Transfers property to

the highest bidder.

Possesion granted 20

days after the sale.RCW 61.24.060(1)

No deficiency judgment.RCW 61.24.100

Trustee’s Deed



Kent Duplex

Purchased for $105,000

Fix up $7,000

Monthly Payment (P.I.T.I.) $900

Rented for $1,700

Net Cashflow/ month $800/month, $10,200 per year

Equity $40,000




Everett Flip

Purchase Price $42,100

Fix Up $15,000

Sale Price $84,950

Net Profit $20,000


Preferred lending partner

In-house professional leasing

and sales team

In-house construction for rehab

Skyline Properties, Inc.

Professional property

management services

Real Estate & Property Management


Through our preferred lender partner …

Your Real Estate Lending Partner


Because you need to pay at the time you purchase a property at the Trustee sale, it is impossible to secure a conventional loan.

Hard money financing, or “Bridge” loans make it possible to secure auction properties for a short term.


Loan Requirements:

• 1st Lien Position

• LTV =<75% of Current Market Value

• Viable Exit Strategy in Place

Standard Loan Fees:

• 2-4% Origination Fee

• 10-12% Interest Rate

• $695.00 Administrative Fee

• Up to 12 months





Member Agreement signed

Filling out loan application

Approval for hard money if flipping

Approval for hard money AND conventional loan if holding


Documents

Jdig education presentation