Real Estate Investing for Realtors

Real Estate Investing for RealtorsSaad Malik, Co-Founder & President Farhan Malik, Co-Founder & CEO

Thinkademy

Hi, I’m Saad

What is Thinkademy?We’re a technology-driven education company that’s

helping people build wealth through real estate investing.

Simply put, we’re building an educational platform for investors.

Financial Vulnerability of Americans

Almost 40% of individuals in the United States either could not or probably could not come up with even $2000 if an

unexpected need arose.

Financial Vulnerability of Americans

Almost 60% of individuals in the United States did not have three months of emergency funds that they could access to

cover an emergency.

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Amit Doshi Greater NJ Title Agency

4 Bridge St. Metuchen, NJ 08840

amit@gnjta.com 732-744-0200 (Office) 732-593-9135

Jack Yao Realmart Realty

1110 Hamilton Blvd Suite 2A South Plainfield, NJ

http://www.realmartrealty.com

Started in 2006

Net profit of over $3.5 million

Involved in 150+ deals

Why real estate?

3

Additional income

Work from home

More vacationsHate your job

Enjoy what you do

Savings for children

WHAT’S YOUR

WHY?

My “why” is to be able to spend more time with my family

Realtors looking to supplement their income investing in profitable real estate deals

Realtors looking to earn more commissions by understanding and working with investors

THIS IS FOR 2 TYPES OF REALTORS

8 years ago…

Why would anyone do this?

WHAT IS REAL ESTATE INVESTING (REI)?

FOCUS ON TWO THINGS

Vehicle Strategy

1 2

CHOOSING A NICHE

Investment Vehicles

Single-family homes

Duplex/Triplex/Quads

Apartments

Commercial

Tax Liens

Notes

Raw Land

Strategies

Flip

Rehab

Buy & Hold

Wholesale

Got my license at 18, but didn’t start until after college

Started straight out of college and didn’t know a thing

Quickly realized that maybe this wasn’t my calling

MY START AS A REALTOR

I was lacking the passion to work with buyers or sellers

I felt I was working too hard with too many clients but not making enough money

Heard a lot about folks investing in real estate

SWITCHING GEARS

Buy land because God ain't making

any more of it.Will Rogers

Bought land in FL and lost $25k

Bought 3 condos and flipped them for $100k net profit

First one was $30k (equivalent to 6 closings in my market)

I was hooked and I was in control

MY TRANSITION FROM REALTOR TO INVESTOR

I was young and had nothing to lose.

Didn’t give my realtor career a fair chance.

You’re in a better position right now than I was

then. (Being a realtor and having the opportunity to

learn about investing.)

WILLING TO TAKE THE RISK TO MAKE THE MONEY

First house I flipped, resulted in a net profit of $30k and only required 10 hours of my time. I made $3,000.00 per hour!

As a Realtor, each deal I would make about $5k in commissions (My split was 70% of a 2.5% Commission from a $300k home sale).

It took me about 32 hours to close a deal with a buyer after showing 10+ properties.

THE MATH & THE MONEY

I would have to show 60+ houses to close 6 houses in order to make the same money. Which meant I was working 192 Hours to make $30k = $156.25 per hour

Decided to make $3,000.00 per hour instead of $156.25 per hour

THE MATH & THE MONEY

Started Executive Realty Solutions

DEAL 1: PURCHASE AND REHAB

Closing Date: April 2007 Purchase: $240,000. Rehab Cost: $30,000 Re-Sale: $340,000

PROFIT: $70,000. (40 Hours)

Somerset, NJ 08873

Buyer’s Realtor Commission: $8,500.00 (32 Hours)

DEAL 2: BUY & SELL AS-IS

Closing Date: April 2007 Purchase: $200,000. Cost of Rehab: $0 Re-Sale: $253,000

PROFIT: $53,000 (15 Hours)

Edison, NJ 08817

Buyer’s Realtor Commission: $6,325.00 (32 Hours)

DEAL 3: SHORT SALE

Closing Date: September 2008 Short Sale Purchase: $175,000 Re-Sale: $330,000

PROFIT: $155,000 (20 Hours)

New Brunswick, NJ 08901

Buyer’s Realtor Commission: $8,250.00 (32 Hours)

DEAL 4: SHORT SALE FOR MOM

Got married!

RICH VS. WEALTH MONEY VS. TIME

As an investor I would become rich As an investor I would obtain money

As a business owner I would create wealth As a business owner I would get my time & freedom

TIME is EVERYTHING

BUDGETING MY TIME

You must seek Knowledge.

Knowledge will then attract Tools.

Tools will then create Systems.

Systems will always control Marketing.

Marketing will always drive Profits.

Profits will then support a Business.

Your Business will then set you Free

THE ENTREPRENEUR’S LAW: SELF-FULFILLING PROPHECY

THE BIG PICTURE INVESTING EVOLUTION

Start out as a wholesaler to gain experience and make ends meet.

Start rehabbing to make large sums of money

Reinvest profits in Rental profits to to make residual income and gain ownership of your time and freedom.

EARN MORE COMMISSIONS BY WORKING WITH INVESTORS

Working with investors means repeat business

Homeowners buy a home once every 7 years, an investor can buy 20 or more homes in a single year.

Double end more deals and get the listing back when homes are renovated.

Spend less time hand holding.

Get more buyer and seller leads.

LAW OF THE VITAL FEW (80-20 RULE)

1. Cut out people from your business that are indecisive and waste your time

2. Investors can be 20% of your network that make up 80% of your business.

3. Double end more deals and get the listing back when homes are renovated

4. Spend less time hand holding.

5. Get more buyer and seller leads.

WAY TO AN INVESTORS HEART IS THROUGH HIS WALLET

1. MACO = 70% ARV - REPAIRS

2. No Anomalies

3. 30% Cash on Cash for Rehabs

4. 17% Cap Rate for Rentals

5. Areas of Expertise

LUXURY SHORT SALE DEAL

Somerset, NJ 08873 $50,000.00 Commission Earned

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