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.
arar
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