Disclaimers Cherif Medawar is a successful real estate investor, educator and syndicator. He is the founder of several RE training companies and investment business models. Cherif Medawar is not an attorney or CPA and does not provide any legal or tax advice. Always consult a real estate attorney for legal advice on your real estate deals This presentation is made in an effort to clarify Cherif Medawar’s investment business models and to provide an opportunity to enroll in a subsequent live training event and/or directly invest in any of his investment programs.
Making money in real estate • Buy and Sell (Sell now or Sell when market moves up) • Buy and Create Cash Flow (Rent or Sell easy terms on installment payments) • Refer or Assign or (if Licensed- Broker) (Get an Investor into a good deal/business model or get a good deal to an Investor)
The keys to success in RE 1) FINDING GOOD DEALS priced lower than market value (Wholesale) 2) ACTING on them using the right BUSINESS MODEL(s) to make huge profits in a safe & consistent manner (using your money or others)
Cherif MedawarCherifMedawar@yahoo.com RE Investor Educator Founder of CMREI Syndicator www.MiniBulkREOs.com
Definitions REOs Installment Sale Land Contract Note PITI Deed/Title Amortization/Seasoning Eviction/Foreclosure
Foreclosure Stages Pre-foreclosure: “Grace period” for the owner to make up late payments, fees and penalties to avoid foreclosure and eviction (Bank sends notices to Owner) Foreclosure:“Forced sale” (By the Bank) of the property at public auction with proceeds applied to the loan debt Post-foreclosure (REO): “Bank owned” property that did not sell at auction
Opportunity • Wholesale properties at the Post-Foreclosure REOs in the Midwest
Post-Foreclosure (Midwest) Pre-foreclosures: Loan balance often higher than current market value Foreclosure Auctions: Banks may discount opening Bid - All Cash! Post-Foreclosure (REOs): Bank owned go to Brokers and Bulk Buyers at “deeper discounts” in the Midwest!
The concept of REOs Opportunity in the Midwest • I buy properties that are in livable condition at less than $20K by purchasing in Bulk (original value often over $100k) • They resell fast between $30K to $40K if on installment sale contract (easy terms) • Installment payments to own must be less than the monthly rent of a similar home in the neighborhood (Rent $550- Own $350) • As a Bulk Investor I get 20% +/yr. & Notes secured against real estate for 15-20yrs
FOR SALE Down Payment $500.00 Monthly Payment $350.00 1-888-XXX-XXXX
The System and Process 1) Buy Bulk and pay all Liens 2) Survey area (Rent and Sale prices) Take photos and install combo lock box Place “For Sale” Signs (Easy Terms) 5) Take incoming calls & Qualify Buyers 6) Use Installments Sale Contract Note 7) Payments through National Note Svc. Co. 8) Keep Note or discount it for cash in 9 mo.
Business Model • You can purchase at less than $20K • I Sell it in apx. 90 days on a installment contract note between $30K to $40K • Monthly payments between $300 to $400 • Note is Secured against the property • Note is Amortized 15 or 20 yrs (9.9% int.) • The Note Svc Co collects the monthly payments (plus tax and insurance) • Cost for service package $1,500 with Gts
Rehab and Improve 325 E. Caven St Indianapolis IN.46225 $350/mo.
Rehab and Improve 3324 E. 5th Ave. Dayton OH $375/mo.
Rehab and Improve 417 Battle Creek MI $395/mo.
Business Model Post-Foreclosure REO (Midwest) • Investing is a business! • Invest by yourself (Buy and Sell) • Invest with me (You paid $18K + $1,500 SP Sec. Note apx. $35K 20%yr+ for 15-20 yrs) Or • Invest with me using your retirement acct. • Invest with others (JVs Buy Bulk)
Example of the calculation Bought $18,000 Note created within 90 days at $35,000 Payment $325/mo = (Income $4,000/yr) Sell seasoned note at 65% of value = $23,000 (Profit $5,000) Total ($9,000) or 50% yield on the $18,000 invested in 1 year
Summary of Business Model • Margin of safety • Double digit returns • Many ways to participate • Low to no Hassle (or Time invested) • Short term opportunity • My service package and Guarantees