higher profits - lower lower risks · higher profits - lower lower risks in real estate investing...

Higher Higher ProfitsProfits -- Lower Lower RisksRisks

in Real Estate Investingin Real Estate Investing

JumpStartREI.com presentsJumpStartREI.com presents

www.JumpStartREI.comwww.JumpStartREI.com

Presented by

Socorro Curiel Master Coach

Presented by

Socorro Curiel Master Coach

Why are so many Why are so many

people people

INTRIGUEDINTRIGUED

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by Real Estate by Real Estate

Investing?Investing?

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The ProfitsThe Profits

Performing Assets Performing Assets

will will Make you a lot of MoneyMake you a lot of Money!!

Significant Tax AdvantagesSignificant Tax Advantages

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Significant Tax AdvantagesSignificant Tax Advantages

can can offset income taxesoffset income taxes

Financial Freedom Financial Freedom

can be achieved from can be achieved from passive incomepassive incomerr

Why are so many Why are so many

people people

AFRAIDAFRAID

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of Real Estate of Real Estate

Investing?Investing?

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The RisksThe Risks

NonNon--Performing AssetsPerforming Assets

will always will always Lose MoneyLose Money

Loss of Revenue and Increased ExpensesLoss of Revenue and Increased Expenses

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Loss of Revenue and Increased ExpensesLoss of Revenue and Increased Expenses

will will increase STRESS increase STRESS in your lifein your life

Foreclosures & Bankruptcies Foreclosures & Bankruptcies

will will Ruin your Credit Ruin your Credit for many yearsfor many years

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Common MistakesCommon Mistakes

•• Having no plan to follow and following Having no plan to follow and following

someone else’s plansomeone else’s plan

•• Not noticing or regarding the market Not noticing or regarding the market

conditions and/or indicatorsconditions and/or indicators

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conditions and/or indicatorsconditions and/or indicators

•• Making emotional decisions about Making emotional decisions about

locations or propertieslocations or properties

•• Buying with the FrenzyBuying with the Frenzy

•• Not running the numbers before Not running the numbers before

purchasingpurchasingaa

Most investors Most investors focus only on focus only on

PROFITSPROFITS and and forgetforget

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PROFITSPROFITS and and forgetforget

to manage theirto manage their

RISKRISKcc

Steps to Minimize RisksSteps to Minimize Risks

Step 1 Step 1 –– Define your Financial GoalDefine your Financial Goal

Step 2 Step 2 –– Find your purpose for investingFind your purpose for investing

Step 3 Step 3 –– Select your Investing StrategySelect your Investing Strategy

Step 4 Step 4 –– Establish your Investing RulesEstablish your Investing RulesStep 4 Step 4 –– Establish your Investing RulesEstablish your Investing Rules

Step 5 Step 5 –– Find a Market to Invest inFind a Market to Invest in

Step 6 Step 6 –– Select your Investing TeamSelect your Investing Team

Step 7 Step 7 –– Find your Investment PropertiesFind your Investment Properties

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Step 1: Step 1: Define your Financial GoalDefine your Financial Goal

Monthly Cash Flow?Monthly Cash Flow?

oror

Capital Gains? Capital Gains?

Monthly Cash Flow?Monthly Cash Flow?

oror

Capital Gains? Capital Gains?

WHAT do you WANT?WHAT do you WANT?

Capital Gains? Capital Gains? Capital Gains? Capital Gains?

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Step 2:Step 2: Find your purpose for investingFind your purpose for investing

WHY WHY do you do you

WANT this WANT this

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WANT this WANT this financial financial

goal?goal?rr

What will keep you moving forward?What will keep you moving forward?

The CarrotThe Carrotandand

The StickThe Stick

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The StickThe Stick

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Residential RentalsResidential RentalsCommercial RentalsCommercial RentalsFlipping PropertiesFlipping PropertiesWholesalingWholesalingLeaseLease--OptionsOptionsRehabs/Fixer Uppers Rehabs/Fixer Uppers

Step 3: Step 3: Select your Investing StrategySelect your Investing Strategy

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Rehabs/Fixer Uppers Rehabs/Fixer Uppers ForeclosuresForeclosuresREOsREOsShort SalesShort Sales

Are these truly investing strategies?Are these truly investing strategies?xaxa

The 3 Components The 3 Components

of a COMPLETEof a COMPLETE

Investing StrategyInvesting Strategy

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Acquisition Acquisition –– How will you acquire the property?How will you acquire the property?

Exit Strategy Exit Strategy –– How will you make money?How will you make money?

Team Team –– Who will support you and your strategy?Who will support you and your strategy?cc

Seller$185,000 Value

Flipping Properties: Double ClosingFlipping Properties: Double Closing2 Closings on the same day2 Closings on the same day

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Closing #1Closing #1

You contract for $150,000 and take title.

(funding required)

Profits: $30,000

Subject to Short-Term Capital Gains Tax

You the Flipper

Flippee

$185,000 Value

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Step 4:Step 4: Establish your Investing RulesEstablish your Investing Rules

Passive or Active?Passive or Active?

Resources to be used?Resources to be used?

Solo or Partnerships?Solo or Partnerships?

Price Range?Price Range?

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Financing Options?Financing Options?

Cash Limits?Cash Limits?

Location Limits?Location Limits?

Property Management?Property Management?

Exit Strategies?Exit Strategies?

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“The risk of losing money is “The risk of losing money is

increased when real estate increased when real estate

purchases are made without purchases are made without

regard to the investor’s own regard to the investor’s own

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regard to the investor’s own regard to the investor’s own

fundamental rules for fundamental rules for

Real Estate Investing.”Real Estate Investing.”

-- Socorro CurielSocorro Curiel

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Step 5:Step 5: Find a Market to Invest inFind a Market to Invest in

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BUY BACK AMERICA!!!BUY BACK AMERICA!!!rr

Real EstateReal EstateCyclesCycles

Flat Market

Seller’s Seller’s MarketMarket

Demand > SDemand > S

Flat Market

AppreciationAppreciation DepreciationDepreciation

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CyclesCyclesSupply = D

Buyer’s Buyer’s MarketMarket

Supply > DSupply > D

S = Demand

How Property Prices Move

DepreciationDepreciationAppreciationAppreciation

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The Foreclosure ProcessThe Foreclosure Process1.1. PrePre--Foreclosure begins with a Foreclosure begins with a Notice of DefaultNotice of Default (NOD) that is filed against (NOD) that is filed against

the property a few months after nonthe property a few months after non--payment begins. payment begins.

•• The Borrower’s options are to pay the shortage and bring the loan current, The Borrower’s options are to pay the shortage and bring the loan current,

refinance the loan, modify the loan, sell the property, short sell the property, or do refinance the loan, modify the loan, sell the property, short sell the property, or do

nothing and allow the foreclosure process to continue.nothing and allow the foreclosure process to continue.

2.2. A A Notice of Trustee SaleNotice of Trustee Sale is filed and widely advertised in the newspaper that is filed and widely advertised in the newspaper that

the property is scheduled to be auctioned to the highest bidder. Bidding starts the property is scheduled to be auctioned to the highest bidder. Bidding starts

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the property is scheduled to be auctioned to the highest bidder. Bidding starts the property is scheduled to be auctioned to the highest bidder. Bidding starts

at the amount owed and title is transferred to the winning bidder. at the amount owed and title is transferred to the winning bidder.

•• In a judicial foreclosure, the court grants the lender a In a judicial foreclosure, the court grants the lender a Decree of SaleDecree of Sale after a after a

complaint is filed against the borrower. The property is sold to the highest bidder.complaint is filed against the borrower. The property is sold to the highest bidder.

•• If there is no bidder, the property becomes Real Estate Owned (REO) by the If there is no bidder, the property becomes Real Estate Owned (REO) by the

lender. Lender will either sell the property in bulk to investment groups or put it lender. Lender will either sell the property in bulk to investment groups or put it

back on the open market with a realtor.back on the open market with a realtor.

3.3. The The ForeclosureForeclosure process is completed with the property auction. process is completed with the property auction.

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Step 6:Step 6: Select your Investing TeamSelect your Investing Team

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Property TeamProperty Team Business TeamBusiness Team

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Step 7:Step 7: Find your Investment PropertiesFind your Investment Properties

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How much Due Diligence is enough?How much Due Diligence is enough?

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1.1. Number AnalysisNumber Analysis2.2. Verify StructureVerify Structure3.3. Verify PerformanceVerify Performance

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Do Your Due Diligence!Do Your Due Diligence!

Number Analysis Number Analysis –– Is there a high probability that by investing in this asset, Is there a high probability that by investing in this asset,

you will meet your financial goal?you will meet your financial goal?

Example: Cash Flow = Income Example: Cash Flow = Income –– PITIPITI--MUMVMUMV

Location Review Location Review –– Is there a high probability that this investment will perform Is there a high probability that this investment will perform

as anticipated given its location?as anticipated given its location?

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as anticipated given its location?as anticipated given its location?

Recourse: Interview property managers in addition to realtors. Recourse: Interview property managers in addition to realtors.

Ask: “Would you allow your mother to live there?”Ask: “Would you allow your mother to live there?”

Structure Inspection Structure Inspection –– Is this structure in the same condition as presented to Is this structure in the same condition as presented to

you? What repairs are needed to allow this investment to perform?you? What repairs are needed to allow this investment to perform?

Recourse: Dated photographyRecourse: Dated photography

The Goal:The Goal: Maximize Profits Maximize Profits andand Minimize RisksMinimize Risksxx

Real Estate Investing success MUSTS:Real Estate Investing success MUSTS:

Basic REI Basic REI EducationEducation

Established REI Established REI RulesRules

A Solid REI A Solid REI PlanPlan

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Plenty of Plenty of DisciplineDiscipline

A Healthy Wealth A Healthy Wealth AttitudeAttitude

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What’s Next for You?What’s Next for You?

“How to Invest in Real Estate”“How to Invest in Real Estate”

A Step by Step GuideA Step by Step Guide

100 Page Workbook …….……...……$ 49100 Page Workbook …….……...……$ 49

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Online Course + MP3 Files.….…..….$ 97Online Course + MP3 Files.….…..….$ 97

Two Group Coaching Sessions...….$ 132Two Group Coaching Sessions...….$ 132

$278 Value$278 Value

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Please visit us at:

Presented by:

Socorro Curiel

www.JumpStartREI.comwww.JumpStartREI.com