Embed Size (px)
Citation preview
Step-by-Step Investing Safely
in Residential Real Estate
September 2012
DISCLAIMER AND HOLD HARMLESS
This event features professionals for the attendees’ consideration to use their services. This event is not and should not
be deemed to be a referral or recommendation of such real estate professionals. The organizers and their respective
affiliates, agents, advisors, officers, directors, employees, members, managers, agents and/or controlling persons
(collectively, “Organizers”), have made no express or implied representations or warranties as to these professionals
other than the fact the professionals have indicated an interest in working with the event’s attendees. The organizers
themselves have not invested with and have not used the services of most of the professionals presenting.
Nevertheless the organizers disclaim all representations and warranties, whether express or implied, concerning the
professionals, including without limitation representations and warranties regarding the professionals’ competency,
qualifications, skill and/or honesty. The Organizers strongly encourages attendees to interview any such professional
and other professionals and make an independent determination as to who to ultimately retain. Attendees accept and
assume all risk stemming from the above disclaimers and agree to hold each of the Organizers harmless from and
against all losses, liabilities, claims, demands, damages, actions, costs and expenses, including without limitation
reasonable attorneys’ fees, expert witnesses’ fees, consultants’ fees and related costs, that directly or indirectly arise
out of attendees use of the information presented to attendees hereunder.
SOCIAL MEDIA NOTICE
#SimplyDoIt #DaniBeitOr
WHAT WILL BE COVERED
USA Real Estate Fundamentals
Choosing A Market
Selecting a Property
The Purchase Process
Getting Ready
Where To Buy
Suggestions
Q & A
∞ Investor since 2002
∞ Out-of-state: AZ, OK, FL, TX, AR, AL, NC, GA
∞ Single family, land, commercial, Tax liens
∞ Guided & supported hundreds of investors
∞ Organizer Silicon Valley Real Estate Investment Club (http://www.meetup.com/svreig)
ABOUT ME
“have a net income of $10,000 every month in 12 years”
UNIQUE FEATURES
Mortgage Miracle
Leverage
Tax deductions
The Best “Side Biz”
W2 or 1098
INDICATORS OF A GOOD METRO
The numbers should talk:
Population size
Multiple employers and industries
Projected employment & population growth
Landlord friendly laws
Purchase price – rent ration
INTELLIGENCE
Metro
• Wikipedia
• Chamber of commerce
• County info
Area
• zipskinny
• Zillow
• Trulia
FINDING PROPERTIES
zillow.com
trulia.com
Craigslist
Simply Do It Agents – connectrei.com
ANALYZING PROPERTIES
Quality Data
• Agent
• Property manager
• Expert
Financial Analysis
• FinestExpert.com
• rentometer.com
• realestateanalysisfree.com
• Propertyshark.com
• Property Evaluator
PURCHASE PROCESS
Leading Steps
Market ID
Reliable local team
ID Property
Purchase Process
Make an offer
Acceptance + deposit
Inspection
Escrow account
Title search
Closing date (settlement)
Recording
Property management agreement
Rental or renovation
YOUR TEAM
Primarily Team
Expert advisor
Agent
Property manager
Mortgage broker
Secondary Team
Insurance agent
Rehab team
Attorney and tax advisor
HOW MUCH WILL IT COST?
4330 Pebblestone Ct, Orlando 3/2 | 1,888 sq. ft. | 1991 built | 2 Car | HOA |Community pool Listed: $120,000 Market Value: $152,500 Down-payment: $24,000 Closing costs, repairs, etc: $5,500
Acquisition costs: $29,500 Estimated Rent: $1,350
Years 5 10 15 20
Net Cash-flow $16,231 $35,971 $59,493 $87,088
Total Equity $30,617 $73,549 $125,220 $187,441
Total $46,847 $109,520 $184,712 $274,529
ROI 149.7% 349.9% 590.1% 877.1%
Ann. ROI 29.9% 35.0% 39.3% 43.9%
LOCAL VS. OUT-OF-STATE
Local Out-of-state
Price $650,000 $125,000
Rent $2,000 $1,250
Rent/purchase price 0.31% 1.00%
Down payment 20% 20%
Down payment $130,000 $25,000
Friendly Laws Tenant Owner
Eviction Expensive
Lengthy Cheap
Quick
Insured Natural disasters ? yes
QUESTIONS You Should Be
Asking Yourself
QUESTIONS YOU SHOULD BE ASKING YOURSELF
How much funds do I have?
What’s the source of the funds?
Do I have a rainy-day fund?
How free/busy am I?
Do I want to be actively or passively involved?
Can I get a loan?
What am I trying to accomplish?
. . .
QUESTIONS YOU SHOULD BE ASKING YOURSELF
. . .
What are my concerns:
Vacancy, mortgage, will it go up or down, will it rent, can I trust the property manager,
Do I know how to analyze a property?
Do I understand the risks that are involved?
Have I explored different exit strategy/ies?
Am I a doer – will be able to pull the trigger when the time is right?
Have I outlined clear investment criteria
MY INVESTMENT CRITERIA
Bedrooms 3
Bathrooms 2
Sq. Ft. 1300
Year 1981
Price $125,000
Rent $1,250
Ratio 1.0%
ROI 9.50%
MINDSET
Be Proactive
Set a date to buy a property
Avoid analysis paralysis
Start making mistakes or better yet use others who have already made mistakes
OUR GUIDANCE
Direction
Support: acquisition,
rehab & rental, sale
Ongoing or on-
demanded consultation
Dallas
Atlanta
Orlando
Simply Do It Network
MARKETS
Atlanta Dallas Orlando
Rental
Flips
Turn-key
Local Teams:
Agent
Property Manager
Rehab team
FASTACT
Good investment properties are sold quickly!
Join
CONTACT INFO
Dani Beit-Or
www.simplydoit.net
Investment properties: www.connectrei.com
Educational videos: www.connectrei.com/video
UPCOMING MEETINGS
OCTOBER
8 Important Things You Should Know About Real Estate and Taxes in 2012
WEBINAR |Mon Oct 01 6:00 PM (9pm ET)
Techniques for Optimizing & Accelerating Your Investments
MT. VIEW CA | Thu Oct 11 7:15 PM
Markets & Investment Opportunities Review - Webinar
WEBINAR | Tue Oct 16 6:30 PM (9:30pm ET)
November Taxes—What you MUST Know and Do Before 12/31/12
FAQ
• Risks
• Property managers
• LLC and entities
• In or Out of State
• Flying out
Be Aware
Land
Small markets
Decreasing population areas
“Chinese” Dry Wall
Suggestions
• Deposit vs escrow
• After closing expenses
• Help the agent
• Inspection/appraisal
• Cashier check/wire
• Notary
Be Ready
• Focus on one or two areas
• Concentrate efforts with smaller number of teams
• Google Satellite – nice but dated
• Pro-active!
General
