2. Training Purpose Make Offers on Property by: Finding Buyers Finding Sellers Evaluating Property Writing Contracts Insider’s Edge 2010
3. Insider's Fast Cash Boot Camp Insider’s Cash Flow Boot Camp In Depth Techniques Full Power Team Extensive Buyers List Extensive Sellers List All Financing Options All Fast Cash Contracts In Depth Techniques Full Power Team Extensive Tenant list Extensive Sellers List All Financing Options All Cash Flow contracts Welcome to Utah Insider’s Edge 2010
19. Fast Cash Techniques Bird Dog or Property Finder Assignment of Contract Double Closing Insider’s Edge 2010
20. Bird Dog or Property Finder Find buyer & criteria Have buyer sign a “Bird dog Agreement” Find motivated seller with like property Give buyer all property info You get paid if buyer purchases! Insider’s Edge 2010
22. Assignment of Contract Find buyer & criteria Find motivated seller with like property Verify buyer’s interest in property Write purchase contract to seller Write Assignment of Contract to buyer Get paid up front from buyer/get paid at closing! Insider’s Edge 2010
24. Double Closing Find buyer & criteria Find motivated seller with like property Line up Hard Money or Transactional Funding Verify buyer’s interest in property Write purchase contract to seller Accept purchase contract from buyer Use Title Co. or Attorney to close both transactions on same day Get check cut from Title Co. or Attorney Insider’s Edge 2010
27. Why use Realtors? Access to real estate leads MLS, pocket listings, & other industry connections Comparables, courthouse information, & market statistics Network of professionals Less legwork for you, weeding out process done, experience with investor deals Leverage – time & resources Experience investing or working with investors in local market Insider’s Edge 2010
30. Ideal Realtor Passionate about: Real estate Investors Actively working in your area Send matching leads Submit multiple offers Low price/necessary contingencies Power team member referrals Worked with investors Invests themselves Understands risk! Insider’s Edge 2010
31. Minimum Requirements Experience Preferred Teachable & hard working Newbie OK Willing to work with investors Qualified property leads Low offers Understands market Insider’s Edge 2010
32. Things to Remember They work for YOU! Interview them: Investment criteria, goals & expectations Build rapport Be clear and confident Take initiative & be assertive Exclusivity agreements You decide Try more than one agent initially Who does the work? Insider’s Edge 2010
34. The Buyers List “ “If you build it, they will come.” Insider’s Edge 2010
35. Importance of Buyers Refines your market Faster turn around time Increased profit Less money out-of-pocket Pre-qualified buyers No wasted effort Insider’s Edge 2010
36. Online Search for Buyer Ads CraigsList.org Kijiji.com UPillar.com BackPage.com WebClassifieds.us USFreeAds.com ClassifiedsForFree.com PennySaverUSA.com Use local TV & radio station websites Insider’s Edge 2010
37. Online Ad Header “We buy houses” “We buy ugly houses” “We stop foreclosure” “Sell your home today” “I buy homes for cash” “Sell your home fast” “Need to sell?” “Fast closing/property” “I buy homes fast” “Cash for property” Insider’s Edge 2010
44. Calling Buyers Introduce yourself “Hi (their first name), my name is (your full name), I’m online looking at your website/Ad and see that you buy houses and I’m curious as to what you’re picking up right now?” Close conversation “Hey, great to meet you. As I’m out looking for property for other buyers, and see some that match your criteria I’ll give you a call.” Insider’s Edge 2010
45. Qualifying Buyers Which areas are you most interested in? Which type of properties do you like to see? What price range? How much profit do you need from each deal? What property characteristics do you look for: Sq ft., # of bed/baths, Acreage, Amenities Insider’s Edge 2010
46. Qualifying Buyers Repairs okay? What types? How quickly can you close? How would you like the deal presented? What do you want included in the packet I send you? Do you work with: Bird-dogs? Assignment of contracts? How many deal a month can you handle? Insider’s Edge 2010
49. Ghost Ads Regular Ads Attention Investors!!! Stop spending all your time looking for great deals; let us do the legwork for you. Call today XXX.XXX.XXXX Buyers Wanted! Buyers needed for multiple investment properties that cash-flow. Call today XXX.XXX.XXXX Cash Buyers Wanted!!! Cash buyers needed for fast closings on multiple investment properties. Call today XXX.XXX.XXXX Handyman Special 3bed/2 bath Owner Desperate Call today XXX.XXX.XXXX Priced Below Market SFR 3/2 Great Neighborhood Call today XXX.XXX.XXXX Fixer Upper!!! SFR 3/2 Must sell/Motivated Call today XXX.XXX.XXXX Posting Ads For Buyers Insider’s Edge 2010
56. Market Analysis Areas with greatest potential? Great for a quick flip Which areas should be avoided? Why? Buyers/sellers market? Local real estate factors Unemployment, construction, government programs, etc.? Days on market? Average sales price Insider’s Edge 2010
58. Preliminary Property Evaluation Get house specs Sq Ft/beds & baths/type of neighborhood, etc. Does the property match criteria? Use maps Pull comparables Use to determine fair market value (FMV) Call seller Verify house information Determine motivation Insider’s Edge 2010
60. Qualifying Sellers Asking price? Type of neighborhood? Sq Ft? # of beds/baths? Days on market? Why are you selling? Repairs? Estimated cost? Consider taking time to build rapport! Insider’s Edge 2010
63. Finding Contractors Home Depot/Lowes Craigslist - www.craigslist.org Bulletin Boards Local Papers Word of Mouth Real Estate Investment Clubs Referrals from your Power Team Yellow pages - www.yellowbook.com Insider’s Edge 2010
79. Road Trip!!! Items to take Inspection form Common Repairs Reference Form Home Depot/Lowes shopping list Pen Notebook Insider’s Edge 2010
80. Running the Numbers Anticipated Selling Price Total Repair Estimate Closing Costs Escrow fees $150-$250. Title search/insurance policy-1% of the remaining balance Appraisals $350-$450. Home inspections $250-$400 Real estate agent 3%-6% Insider’s Edge 2010
82. Fast Cash Formula Anticipated selling price Closing costs Repairs Holding costs Marketing Fees/Realtor ?????? Maximum Offer Amount = Add costs together then subtract from anticipated selling price to get maximum offer amount Insider’s Edge 2010
83. Contracts Bird-dog Agreement To buyer Real Estate Purchase Contract (REPC) To seller Assignment Contract To buyer Real Estate Purchase Contract To buyer Insider’s Edge 2010
85. Elements of a Contract And or Assigns Entity as Buyer Property Description Legal Description Personal Property Purchase Price Earnest Money Acceptance Date Closing Date Title Insurance Home warrantee Property Insurance and Tax Proration Closing vs. Possession Date Contingencies Signatures & Date Insider’s Edge 2010
86. 1. “This offer is subject to buyer’s/buyer’s partner’s walk-through inspection and acceptance of the same delivered to the seller within 30 days of sellers acceptance to this offer to purchase.” 2. “This offer is subject to a property inspection by a licensed home inspector, the results of which must meet buyers approval.” 3. “Buyer has a right to assign his/her interest in this contract prior to settlement to any person, corporation or entity which he/she may designate.” Contingencies/Addendums Insider’s Edge 2010
87. 4. “This offer is subject to approval of buyer’s partner within 30 days of date of acceptance.” 5. “Buyer reserves the right to show the property prior to settlement for the purpose of renting or reselling it, and seller agrees to permit access to buyer at any time from the date of this agreement up to the settlement date.” 6. “All earnest money will be returned to buyer in the event that buyer is not able to conclude contract successfully.” 7. “This sale shall include all appliances and fixtures.” Contingencies/Addendums Insider’s Edge 2010
89. Presenting Offers on FSBO Make an appointment In person is more effective All sellers should be present Establish rapport Learn and use names Build on common interests Use legal contract Verbal offers may not be legally binding Discuss needed repairs Do not criticize property Discuss terms of the offer Insider’s Edge 2010
90. Presenting Offers Practice presenting Discuss offer price Offer based on research Be confident Peace of mind from selling Remind sellers of the reasons they want/need to sell Thank sellers “I look forward to working with you.” Always be professional & positive Insider’s Edge 2010
Real estate agents can be a very valuable resource to add to your power team. Especially when you are first starting out they can help you gain the local market knowledge that you need to successfully invest in your area. They have access to the MLS, pocket listings, and courthouse research. They can offer leads on properties from any of these sources. They can be another set of eyes and ears for you. The real estate agent you are looking is well versed in local market and well connected within the local real estate industry. Their strategic alliances can help you gain access to a variety of different professionals who can be added to your power team and help you do your deals. Essentially, you can shorten your learning curve and business ramp up by piggy backing off of their resources and connections in the local market. You will find that there are a lot of real estate agents, but not all are created equally. We recommend screening them. After all you are hiring them to work for you, you may as well have someone who is doing the work you need and finding the deals that meet your investment criteria. You must align yourself with a real estate who is “investor friendly” . You want to work with someone who understands how a real estate investor operates and what you will need their help with over time. Those who meet this criteria will understand that you will be looking at a lot of properties and offers per week. They do not necessarily have to have years of experience, although that is a beneficial quality to have. They can be new to the industry, but open to what you are trying to do and what you need them to do. If they are not open to this, you need to look for another real estate agent who is. You will not accomplish what you are trying to do without an agents cooperation.
Don’t jump in and suggest strategies or techniques. Ask what the agent recommends, or has success with. Once you have a relationship built, you can talk more about what you want to do. If you jump in right away with contract assignments, you will likely alienate the agents. They will ask you what resources you have. Don’t worry about being honest. Just ask them how they can help you fill the gaps, regardless of if you need money, credit, or partnerships.
The neighborhood can make or break an investment. You must make sure that the neighborhood is desirable to your end buyer. You should either use Google maps street view to cruise around the neighborhood or drive through the neighborhood yourself. You will need to look for the condition of the properties in the area. Is there a lot of deferred maintenance and boarded up homes or are they freshly painted with well manicured lawns? Are there people hanging out on the street corners during the day? What about at night? Who lives in this area? Families? How is the school district in this area? Are their bars on the windows and doors? Are there cars up on blocks in the streets or Junkers in the yards? What other debris might there be in the front yards of these properties?
