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Transcript of Tucson Real Estate Investor Networking PPP4 APR 26.pdf¢  Tucson Real Estate Investor...

  • 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

    · De bt Relie

    f

    · Illn

    ess / de ath

    · 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

  • 4724 S Rosette Dr. Tucson 85730

    Cost $75000 (includes $20,000 rehab)

    Value $125000

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

    Payment $680.00 (includes taxes and insurance)

  • 4724 S Rosette Dr. Tucson 85730

    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

  • 4724 S Rosette Dr. Tucson 85730

    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

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

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    A Secure Investor. All Rights Reserved.

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