Really.I've put information on here that you can only learn in real life.making money investing in real estate.Yeah thats cool right.What most of you people "with all due respect"dont know is that real estate is a lot harder that it is percieved by the people who do it.You can make money starting with nothing but you have to realize that it is a do or fantasize position in your life.Dean and many other mentors out there tell you to take action and their right.What dean shows you is how to be a wholesaler on a big scale,and thats good but just remember that if you can find Props at 50% or more off their After Repaired Values that is all your profit.Why would you send that profit to someone else for a couple grand.
Flip Houses.I'm not a guru but I will tell you that I have been through the Sh;;t.No money and no credit.When you find a good deal you will find the money.
Step #1-Have a bank account.No? open one,its mandatory!
Step #2-Find a house that needs repairs-Mandatory in california.In Real life you will be making offers on dozens of houses that need repairs just to get 1 deal.In order to make money you have to know how to make money.Heres how.
HARD MONEY LENDERS - You have to have $1,000 to get the flip prop under contract.Get this in your head,Noone cares if you dont have money,the deal you get under contract will be your ability to get the money to flip the property.You will be creating equity when you repair the property.65% Rule,Hard money lenders will only lend you the money if it fits their investment criteria.
ARV-After repaired value,never use zillow or market value websites.The true arv of a property can only be determined by the real actual sold comps.Once you have and established value for the suspect property from a REAL ESTATE AGENT you deduct all the expences for flipping the property.
Your ARV,Just say its $100,000 "minus"35% = $65,000 right,"minus repair costs" consult your contractor.lets say $20,000 for repairs,so thats $45,000 as your maximum offer.Then you roll all the costs into your hard money loan.
Closing costs,Add 3% to the ARV. $100,000 + 3%.That will cover your closing costs when you buy the house,You will also have to use money to sell the house,add another 3% on the arv for selling costs not including Agent fees which will come out of the equity as an expence.
LENDER POINTS-The hard money lender will charge you points for giving you the loan.1 point is equal to 1% of the loan,usually this is 4 points in california.Roll the points into the loan.
Remember,all the costs involved from the purchase,repairs,closing costs,holding costs,lender points must come in under 65% for you to get the loan without any money out of pocket,credit is never an issue if you have a deal like this because investors will fight for that 35% equity cushion you created when your offer was accepted.
BASICS-When you establish the ARV of the property,deduct 35%,Then you deduct all the other costs,repair costs are deducted before Loan points,holdind and closing costs are deducted after loan points.
HOLDING COSTS-holding costs.You have read a book on real estate investing,you dont know everything you think you know.Holding costs are something you are just learning about from me"most likely",there are only a few people who explain them.Electricity,water,taxes,loan payments.These are your holdind costs and you have to account for them whether your wholesaling or flipping.
STRESS-i cant stress these expences on you enough,if you want to flip houses and make money then account for all costs and roll them into your loan.When you have the property under contract you start submitting your loan request by PHONE to hard money lenders.
NEGOTIATE-You have to let the lenders know your position financially.What are you monthly payments.
Take your ARV of the property and multiply it by the interest rate,stick with 18% when you calculate this,ARV $100,000 x 18% = $18,000 Divided by 12 months = $1,500.Deduct the montly payments off the 65% with everything else,you dont have to deduct 12 months unless you can find someone who is crazy enough to accept that low of an offer.This is how you roll your monthly payments into the loan for say 6 months,which will give you enough time to fix and sell the house.
EARNEST MONEY-If you dont have $1,000 in your bank account then you have to get your offer accepted,then find the money.When you make an offer on a house you can use a photocopy of a check for $1,000 when you submit your offer,this is legal and ethical instead of writing 30 checks to make offers right?Understand that when you have a deal with profit built in you can show that to people who will lend you the earnest money to lock up the flip.Give them a 100% return,$2,000 out of your $15,000 or whatever your making.If you have to give them 50% of your profits,your profits are going to give you the ability to flip multiple houses at once after your first flip.Use your money to make more money,multiply your income,if you have read deans books you know how to do this already.
Fix the property as generically as possible,understand this,you want to give people what they are used to,3bed 2bath is your biggest market"middle income America".2bed 1bath will take longer to sell.
People dont need fancy fixtures,you want to give them a blank canvas that they can customize themselves.Plain paint colors like beige or white are fine,dont choose colors that might only appeal to you.
When you sell the property you will price it at 10% off ARV,you will have a home that looks new and feels new.The front yard,kitchen and master bath will sell the house.Focus on those areas first.
Your hard money lender will pay you in draws,say the repairs are $20,000,you will get repair draws every week until the repairs are finshed.
Streamline the process so you do noot have to manage the contractors through the repair processes.
__________________
ANY FOOL CAN CRITICIZE,CONDEMN AND COMPLAIN AND MOST FOOLS DO.
BENJAMIN FRANKLIN
Really.I've put information on here that you can only learn in real life.making money investing in real estate.Yeah thats cool right.What most of you people "with all due respect"dont know is that real estate is a lot harder that it is percieved by the people who do it.You can make money starting with nothing but you have to realize that it is a do or fantasize position in your life.Dean and many other mentors out there tell you to take action and their right.What dean shows you is how to be a wholesaler on a big scale,and thats good but just remember that if you can find Props at 50% or more off their After Repaired Values that is all your profit.Why would you send that profit to someone else for a couple grand.
Flip Houses.I'm not a guru but I will tell you that I have been through the Sh;;t.No money and no credit.When you find a good deal you will find the money.
Step #1-Have a bank account.No? open one,its mandatory!
Step #2-Find a house that needs repairs-Mandatory in california.In Real life you will be making offers on dozens of houses that need repairs just to get 1 deal.In order to make money you have to know how to make money.Heres how.
HARD MONEY LENDERS - You have to have $1,000 to get the flip prop under contract.Get this in your head,Noone cares if you dont have money,the deal you get under contract will be your ability to get the money to flip the property.You will be creating equity when you repair the property.65% Rule,Hard money lenders will only lend you the money if it fits their investment criteria.
ARV-After repaired value,never use zillow or market value websites.The true arv of a property can only be determined by the real actual sold comps.Once you have and established value for the suspect property from a REAL ESTATE AGENT you deduct all the expences for flipping the property.
Your ARV,Just say its $100,000 "minus"35% = $65,000 right,"minus repair costs" consult your contractor.lets say $20,000 for repairs,so thats $45,000 as your maximum offer.Then you roll all the costs into your hard money loan.
Closing costs,Add 3% to the ARV. $100,000 + 3%.That will cover your closing costs when you buy the house,You will also have to use money to sell the house,add another 3% on the arv for selling costs not including Agent fees which will come out of the equity as an expence.
LENDER POINTS-The hard money lender will charge you points for giving you the loan.1 point is equal to 1% of the loan,usually this is 4 points in california.Roll the points into the loan.
Remember,all the costs involved from the purchase,repairs,closing costs,holding costs,lender points must come in under 65% for you to get the loan without any money out of pocket,credit is never an issue if you have a deal like this because investors will fight for that 35% equity cushion you created when your offer was accepted.
BASICS-When you establish the ARV of the property,deduct 35%,Then you deduct all the other costs,repair costs are deducted before Loan points,holdind and closing costs are deducted after loan points.
HOLDING COSTS-holding costs.You have read a book on real estate investing,you dont know everything you think you know.Holding costs are something you are just learning about from me"most likely",there are only a few people who explain them.Electricity,water,taxes,loan payments.These are your holdind costs and you have to account for them whether your wholesaling or flipping.
STRESS-i cant stress these expences on you enough,if you want to flip houses and make money then account for all costs and roll them into your loan.When you have the property under contract you start submitting your loan request by PHONE to hard money lenders.
NEGOTIATE-You have to let the lenders know your position financially.What are you monthly payments.
Take your ARV of the property and multiply it by the interest rate,stick with 18% when you calculate this,ARV $100,000 x 18% = $18,000 Divided by 12 months = $1,500.Deduct the montly payments off the 65% with everything else,you dont have to deduct 12 months unless you can find someone who is crazy enough to accept that low of an offer.This is how you roll your monthly payments into the loan for say 6 months,which will give you enough time to fix and sell the house.
EARNEST MONEY-If you dont have $1,000 in your bank account then you have to get your offer accepted,then find the money.When you make an offer on a house you can use a photocopy of a check for $1,000 when you submit your offer,this is legal and ethical instead of writing 30 checks to make offers right?Understand that when you have a deal with profit built in you can show that to people who will lend you the earnest money to lock up the flip.Give them a 100% return,$2,000 out of your $15,000 or whatever your making.If you have to give them 50% of your profits,your profits are going to give you the ability to flip multiple houses at once after your first flip.Use your money to make more money,multiply your income,if you have read deans books you know how to do this already.
Fix the property as generically as possible,understand this,you want to give people what they are used to,3bed 2bath is your biggest market"middle income America".2bed 1bath will take longer to sell.
People dont need fancy fixtures,you want to give them a blank canvas that they can customize themselves.Plain paint colors like beige or white are fine,dont choose colors that might only appeal to you.
When you sell the property you will price it at 10% off ARV,you will have a home that looks new and feels new.The front yard,kitchen and master bath will sell the house.Focus on those areas first.
Your hard money lender will pay you in draws,say the repairs are $20,000,you will get repair draws every week until the repairs are finshed.
Streamline the process so you do noot have to manage the contractors through the repair processes.
ANY FOOL CAN CRITICIZE,CONDEMN AND COMPLAIN AND MOST FOOLS DO.
BENJAMIN FRANKLIN