tucson real estate investor networking clubfiles.meetup.com/11067002/treinc ppp4 apr 26.pdf ·...

Tucson Real Estate Investor Networking Club

Focus Points of a Real Estate Investor

April 26, 2016

BY CRAIG BARTON

AN AZREIA SUB-GROUP

CRAIG BARTON

* 2004 - 2006 Manufactured Homes (land home packages) * 2007 First Wholesale deal and my first Flip * 2008 Educated on subject to, lease options, owner carry * 2008 - 2011 flipped REO’s took properties with owner carry * 2011 to present work all marketing strategies.

Real Estate Investor

Focus Points of a

Real Estate Investor

AREAS OF FOCUS

• Analyzing • Closing • Private Money

• Marketing • Exit Strategies • Negotiation

Marketing

KNOW our exit

strategies before we set up our

campaigns

TERMS

•  Owner Carry (free and clear)

•  Subject to (mortgage in place, possible short term)

•  Lease Option

•  Agreement for Sale

•  Wholesale

•  Prehab

•  Rehab

SHORT TERM LONG TERM

SHORT TERM

* Expensive Money (hard money) * Bad Price to rent ratio (expensive house) * Lack of money (need money to live)

LONG TERM

· Institutional loan · Owner Carry loan · Subject to existing mortgage

Low Interest Loans in place Home must Cash Flow We don’t need money now

FOCUS:

FOCUS:

• Burnt out landlords • Free and Clear • Financed Homes with equity • Repair issues • Inherited houses • Divorce • Illness • Job Transfer • Loss of Job or income • Fire Damage • Needs debt relief • Code Violation • Tax Lien • Down sizing

Marketing for Short and Long

Term Deals

NAME THE STRATEGY

Analyzing Deals

After Repair Value (ARV) Maximum allowable Offer (MAO) Financing Details Possible Income minus expenses

Quick Repair Analysis

Full Rehab

· AC · Roof issues · Plumbing Issues · Electrical Issues (Panel) · And everything else

$30 square foot

Major Rehab

· Good roof (minor repairs) · Electric and plumbing OK (Minor Repairs) · Needs AC

$22 per square foot

Major Cosmetic Repairs

· Kitchen · Bathrooms · Flooring · Paint · General Repairs

$18 per square foot

Light Rehab

· Flooring · Paint · Refurbish Kitchen · Refurbish Bathrooms · General Repairs

$10 per square foot

NEGOTIATION

· Major money issue

(law suit, IRS, business problems)

KNOW THE

· Debt Relief

· Illn

ess / death · No money to repair property · Relocation

Common Objections

“Asking too much” “Make me an offer” “My house is in great Condition”

Closing the Deal

· Make sure all parties on title are present · Know what you want to offer before arriving. · Have different offers ready

1. Cash 2. Little down (owner carry or subject to) 3. More down · Know the hot buttons. · Have the agreement ready · Ask with authority

Different offers

ARV $120,000 Cash =sale price $65,000 Small down =sale price $125,000 · $0 Down · $500 for 120 months · Balloon $65,000 Large down =sale price $110,000 · $15000 · $500 for 120 months · Balloon $35,000

Private Money

Short Term

12 to 15 % no points

Medium Term

(5 years) 7 to 10% ( 1st or 2nd positions)

Long Term

(5 years) 4 to 6% + 50% equity ( 1st or 2nd positions)

3434 S Pantano Rd. Tucson 85730

ARV $125,000 As-is Value $110,000 Repairs needed $5,000 Down $6948 (includes May payment) Sale Price $110,000 (5k to seller) Subject to Mortgage $78,832 6.25% ( in year 10)

2nd Mortgage $26,000 Due in 12 years Payment $752.38 Rent $945.00 Equity $193.00 Per Month

4724 S Rosette Dr. Tucson 85730

ARV $125,000

As-is Value $75,000 (retail market)

Repairs needed $25,000

Sale Price $55,000

Hard Money $45,000 plus $40,000 holdback 15%

(due in year 2)

Payment $850.00 (average) Int. Only


Cost $75000 (includes $20,000 rehab)

Value $125000

Investor $100,000 (6% plus 50% equity)

Payment $680.00 (includes taxes and insurance)


Lease Option $139,900 (5 years) $5000 Down $950 Month Profit $25,000 cash (borrowed, tax free) $5,000 from down $16200 ($270 cash flow 5 years) $17500 (50% equity Split)

$63,700 over 5 years


Investor Investment $100,000 6% Return $30,000 (5 years) $17500 (50% equity Split) $47,500 9.5% Return

Guaranteed! (OH, we’re not supposed to say “Guaranteed”)

“Motivation is what gets you started. Habit is what keeps you going.”

THANK YOU

-- Jim Ryun

BidOnHomeNow.com ASecureInvestor.com FlipWithCraig.com 1EZBuyer.com 1EZSeller.com

Thank you

CRAIG BARTON

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