1 / 86

The

The. Complete Guide to. Getting. Started. Day 1 Finding & Analyzing Deals. Day 2 Choosing A Profit Strategy. Day 3 Putting It All Together. Day 1 Finding & Analyzing Deals. Creating Wealth with Real Estate. Finding Deals. Motivated Sellers. Where to Find Deals. Targeting Sellers.

mave
Download Presentation

The

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. The Complete Guide to Getting Started Day 1 Finding & Analyzing Deals Day 2 Choosing A Profit Strategy Day 3 Putting It All Together

  2. Day 1Finding & Analyzing Deals Creating Wealth with Real Estate Finding Deals • Motivated Sellers • Where to Find Deals • Targeting Sellers Evaluating Discount Property Evaluating Income Property & Cash Flow Financing With No Money Down Conventional Financing

  3. Day 1Finding & Analyzing Deals What will it take for you to be wealthy?

  4. Day 1Finding & Analyzing Deals • Learn The Wealth Formula • Learn Types of Income • Develop Millionaire Mindset • Implement Wealth Formula • GET STARTED

  5. Day 1Finding & Analyzing Deals “The Wealth Formula” Constant Investment Time For Growth What Yield Will You Learn To Get Wealth Result

  6. “Stage One Investing” Day 1Finding & Analyzing Deals • Amount Invested $165 Per Month • Time Period 25 Years • Rate of Return ??????? • Financial Goal $1,000,000

  7. $3,800,000!! $1,400 K Linear Rates 535,000 218,000 114,000 73,000 49,500 Twenty-Five Years Day 1Finding & Analyzing Deals 25% 20% Money plus Knowledge 15% 10% Amount Invested $165 a month 6% 3% 0%

  8. Day 1Finding & Analyzing Deals $3,800,000!! 25% $1,400 K 20% Or Residual Rates? 535,000 15% 218,000 10% 114,000 6% 73,000 3% 49,500 0% Twenty-Five Years

  9. Time For Money Results For Money Assets For Money Types of Income Day 1Finding & Analyzing Deals Linear Residual

  10. Wealth Characteristics Day 1Finding & Analyzing Deals • Burning Desire • Goal Oriented • Decisive In Nature • Surrounded By Master Mind Team • Specialized Knowledge

  11. Real Estate Flip Day 1Finding & Analyzing Deals • Buy For $150,000 • Sell For $180,000 • Profit $30,000

  12. Yield Day 1Finding & Analyzing Deals Profit Rate of Return Investment $ 30,000 20% $150,000

  13. Leverage Day 1Finding & Analyzing Deals $120,000 from Bank $150,000 Price $30,000 from You $30,000 100% $30,000

  14. Balance Day 1Finding & Analyzing Deals Business Linear Income Assets Residual Income

  15. Day 1Finding & Analyzing Deals Creating Wealth with Real Estate Finding Deals • Motivated Sellers • Where to Find Deals • Targeting Sellers Evaluating Discount Property Evaluating Income Property & Cash Flow Financing With No Money Down Conventional Financing

  16. Day 1Finding Deals/Motivated Sellers Day 1 - Finding & Analyzing Deals GOALS • At the end of this session, you will be able to: • Recognize a motivated seller • Summarize why sellers become motivated • Explain how to target motivated sellers

  17. Finding Deals/Motivated Sellers Day 1 - Finding & Analyzing Deals • Types of Motivated Sellers: • Price (wholesale) – willing to discount the price to get a quick sale • Terms – willing to discount the terms to get a quick sale

  18. Finding Deals/Motivated Sellers Day 1 - Finding & Analyzing Deals Reasons Sellers Become Motivated • Personal – affect only the seller • Property –attach to the property • Economic – relate to general location or the local economy

  19. Finding Deals/Motivated Sellers Day 1 - Finding & Analyzing Deals Reasons Sellers Become Motivated Personal • Owner’s location • Health • Retirement • Divorce • Financial • Job Transfer • Tired Landlord • Death in the family • Poor Management • Bad Partnership

  20. Finding Deals/Motivated Sellers Day 1 - Finding & Analyzing Deals Reasons Sellers Become Motivated Property • Poor Management • Poor Financing • Property Condition • Obsolescence

  21. Finding Deals/Motivated Sellers Day 1 - Finding & Analyzing Deals Reasons Sellers Become Motivated Economic • Local Economic Changes • Local Neighborhood Changes • Law Changes • Zoning, Rent Control, etc.

  22. Finding the Deals/Where to Locate Day 1 - Finding & Analyzing Deals Realtors/MLS • Types of sellers • Pros • Cons • Tips

  23. Finding the Deals/Where to Locate Day 1 - Finding & Analyzing Deals Newspapers • Types of sellers • Pros • Cons • Tips

  24. Finding the Deals/Where to Locate Day 1 - Finding & Analyzing Deals Legal Newspapers • Types of sellers • Pros • Cons • Tips

  25. Finding the Deals/Where to Locate Day 1 - Finding & Analyzing Deals Driving for Dollars • Types of sellers • Pros • Cons • Tips

  26. Finding the Deals/Where to Locate Day 1 - Finding & Analyzing Deals Foreclosures • Types of Sellers/Foreclosure Process • Pros • Cons • Tips

  27. Finding the Deals/Where to Locate Day 1 - Finding & Analyzing Deals Bird Dogs • Types of sellers • Pros • Cons • Tips

  28. Finding the Deals/Where to Locate Day 1 - Finding & Analyzing Deals Courts • Types of sellers • Pros • Cons • Tips

  29. Finding the Deals/Where to Locate Day 1 - Finding & Analyzing Deals Bird Dogs/Networking • Types of sellers • Pros • Cons • Tips

  30. Finding the Deals/Where to Locate Day 1 - Finding & Analyzing Deals Advertising • Flyers • Business Cards • Newspaper Ads • Direct Mail • Car Signs • Radio & TV • Website • REIA Groups • Expired MLS • Yard Signs

  31. Finding the Deals/Where to Locate Day 1 - Finding & Analyzing Deals Advertising • Types of sellers • Pros • Cons • Tips

  32. Finding the Deals/How to Target Day 1 - Finding & Analyzing Deals Contacting Sellers • Advertising • Direct Mail • Telemarketing • Drive bys/Door knocking

  33. Evaluating Income Property Day 1 - Finding & Analyzing Deals SESSION REVIEW • What we covered this session: • How to recognize a motivated seller • Why sellers become motivated • How to target motivated sellers

  34. Day 1Finding & Analyzing Deals Creating Wealth with Real Estate Finding Deals • Motivated Sellers • Where to Find Deals • Targeting Sellers Evaluating Discount Property Evaluating Income Property & Cash Flow Financing With No Money Down Conventional Financing

  35. Evaluating Discount Property Day 1 - Finding & Analyzing Deals GOALS • At the end of this session, you will be able to: • Summarize key focal points of valuing and analyzing discount property • Explain how to use a CMA • Perform a discount analysis

  36. Evaluating Discount Property Day 1 - Finding & Analyzing Deals 7 Steps of Evaluation • Find the Property • Find the comps • Estimate Repairs • Estimate Costs • Evaluate Exit Strategies • Estimate Profit Potential • Complete Acquisition Sheet

  37. Evaluating Discount Property Day 1 - Finding & Analyzing Deals Focal Points • Location • Property Condition • Price • Financing • Seller’s Motivation/Flexibility

  38. Evaluating Discount Property Day 1 - Finding & Analyzing Deals Comparables (Comps) • Address • Sq footage • Age • Bedrooms • Baths • Gar/Carport • Lot Size • Construction • Price • Days on Mkt • Extras • Distance • Subdivision • Appraisals

  39. Evaluating Discount Property Day 1 - Finding & Analyzing Deals Finding Comps • Tax Rolls • Web Sites • MLS/Realtors • Driving for Dollars • Listing Services

  40. Evaluating Discount Property Day 1 - Finding & Analyzing Deals Estimating Repairs • Initial Self Inspection • Measuring Tape • Ground Tester • Marble • Screw Driver • Software • Licensed Inspector

  41. Evaluating Discount Property Day 1 - Finding & Analyzing Deals Estimating Costs • Buying Costs • Holding Costs • Closing Costs

  42. Evaluating Income Property Day 1 - Finding & Analyzing Deals SESSION REVIEW • What we covered this session: • Key focal points of valuing and analyzing discount property • How to use a CMA/Find Comps • How to perform a discount analysis

  43. Day 1Finding & Analyzing Deals Creating Wealth with Real Estate Finding Deals • Motivated Sellers • Where to Find Deals • Targeting Sellers Evaluating Discount Property Evaluating Income Property & Cash Flow Financing With No Money Down Conventional Financing

  44. Evaluating Income Property Day 1 - Finding & Analyzing Deals GOALS • At the end of this session, you will be able to: • Define key terms of cash flow analysis • Explain how to perform a cash flow analysis • Recognize pitfalls of cash flow analysis

  45. Evaluating Discount Property Day 1 - Finding & Analyzing Deals Cash Flow Analysis __________ Projected Gross Income __________ − Vacancy Loss __________ − Collection Loss __________ = Effective Gross Income __________ − Fixed Expenses __________ − Variable Expenses __________ = Net Operating Income __________ − Debt Service __________ = Pre-tax Cash Flow

  46. Evaluating Discount Property Day 1 - Finding & Analyzing Deals Cash Flow Analysis Projected Gross Income: Monthly rent 12 Vacancy Loss: Accounts for time when property is not rented Effective Gross Income: Amount that remains to pay expenses Fixed Expenses: Any cost not related to occupancy

  47. Evaluating Discount Property Day 1 - Finding & Analyzing Deals Cash Flow Analysis Variable Expenses:Any additional costs Net Operating Income:Income before any mortgage payments Debt Service:Mortgage payments Pre-Tax Cash Flow:Cash flow before paying taxes

  48. Evaluating Discount Property Day 1 - Finding & Analyzing Deals Pitfalls of Cash Flow Analysis • Overestimation of income • Lease price vs. actual rent • Undervaluation of vacancies

  49. Evaluating Discount Property Day 1 - Finding & Analyzing Deals Pitfalls of Expenses • Underestimation of fixed and variable expenses • Omission of expenses • Omission of maintenance expenses

  50. Evaluating Discount Property Day 1 - Finding & Analyzing Deals Estimating Expenses • 20% of effective gross income • Three years of tax returns • Audited financials • Management company reports

More Related