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40k FlipsModule 4: Mindmap Conversion to Word Document
HOUSEKEEPING Learn the $40k flips system and a daily plan to execute foundation for success
o Josh o Mark
set the ground rules LIVE coaching all email into the Google group
o [email protected] so everyone has the benefit of the question and the answer only constructive feedback allowed no bitching just to bitch
SUPPORT QUESTIONS o access to the members site
user name password
o register for the coaching calls link
o problem Credit cards / billing o [email protected]
show them the members site o submit your deals o coaching application o coaching calls
register for all calls cover the schedule of calls
every Tuesday and Thursday %5 to pan can
o thanks for donation and support o June 1st 5k walk run o $44,000
www.strategicrealestatecoach.tv
THE BIG QUESTION why do real estate investors focus on sellers and buyers WITHOUT focusing on funding? serving private lenders first is the foundation for a winning business model and mindset
o give starts receiving process marketing is sales in print
o Joe Polish
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typical real estate investor o goes and finds dealso tries to buy stuff
ends up wholesaling everything due to lack of funding o find the funding and have your competition will bring you the deals
ALTERNATIVE FORMS OF FUNDING Hard Money Loan
o ReCasa Loan Information Package 7.2.2012.pdfo Term
6-9 months o rate
Prime plus 6.25% Min 9.5%
o Points 5 pts. up front
o Example Borrowing 100k
$5,000 up front Prior to closing Builder's risk policy, title ins, survey
Draws $5,000 increments
o Example: you do the work you pay for the work they come and inspect the work then we reimburse you
o Credit 680 or better they are going to pull credit from all three bureaus
o Collateral Mortgage on your primary
o Repayment Monthly interest only payments
o example 100,000 loan 12% interest 12,000 yr.
1k month Loan Amount
100% of purchase and improvements up to 70% of completed project o Application
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loan app 2 months bank statements 2 years tax returns 2 recent pay stubs Per Fin Statement Schedule of assets Sounds pretty Much like bank loan!!!
o Line of Credit Institutional Financing Bank Line of Credit
at least 2 years CPA's by trade
o Case Study Tempo Funding Gap Funding 1st mortgage HARD MONEY LENDER / PRIVATE MONEY LENDER FOR
500k Need 100k REPAIRS
hard money lender will only go 552k they will cover the remaining 50-100k
2nd mortgage ARV 850k
o Equity partnership o Case Study Scenario
JV partnership 1 guy puts up all the money 1 guy does all the work Own LLC 50/0
o 500 units o 500 units
This allows for a partnership and allows for both parties to have equal control over the decision making process
Operating Agreement Split Profits DO NOT have to equal the ownership
Control Is evidenced / shown thru stock / or unit ownership 25% of the profit
we are going to do multiple deals over and over the lender / investor DOESN'T Want to do a note and mortgage THEY WANT OWNERSHIP / CONTROL over the deal
o step 1 hire a lawyer and create the LLC
$400
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LLC set up and filing write operating agreement
o Step 2 Fund the LLC open a checking acct and both deposit $500 each
$1000 $500 matches your 500 units of ownership $500 matches your units of ownership BASIS
o Step 3 Operating agreement is structured to determine who can do what/ loans/
decisions and profit splits o Step 4
the guy will all the cash deposits $100k Loan into the LLC LLC has a note / loan $100k NOTE
if the guy with all the money is going to loan $100k to the LLC HE MUST own 49% of the LLC or less
o Step 5 make offers, EMD, POF and you are ready to go make money
o Step 6 IF THE LLC needs MORE money the LLC can borrow additional money from private lenders
PRIVATE MONEY ELEVATOR PITCH My Elevator Pitch
o Hey Josh what do you do? Well, I raise capital for real estate!
o My favorite I raise money for real estate deals. I raise money from private investors, I buy
foreclosures and pay my investors a fixed double digit rate of return I own a bunch of real estate businesses and I raise capital to fund projects. I work
with investors and pay them a double digit rate of returno BECAUSE ITS SUPER SEXY!!!!!!!!!!!!
response oh that’s great I’ve always wanted to buy a rental!! oh kind of like Carlton sheets sounds interesting tell me more
o Tell everyone about what you do "in a cool way" Its works great for everyone: my investors earn a fixed double digit rate of return
and I can move faster and closer quicker b/c we can pay cash so I’m able to find and buy the best deals before anyone else.
o tell me more: well THE SEC requires that we meet face to face and we wait at least 30 days before you invest with me
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PRIVATE MONEY PARTNER PHONE CALL BEHIND Hey this is josh. I was calling to see if you got my newsletter. Ok great. How do you like it? Well
the reason that I sent it to you is not b/;c I thought you were going to buy or sell a house. I sent it to you b/c you are my friend and I want you to know what I do in case you come across someone who can use my services. Whens a good time for us to hook up so I can tell you what I’m looking for exactly.
PRIVATE MONEY PARTNER FOLDER 3 ring binder
o Wal Mart $.97 Cents o left side
Sample Note and Mortgage in the front left pocket with their name on it so they know what it will look like
4034 Manchester Road Akron Ohio 44319 1st Mortgage SAMPLE FOR PUBLIC 8.27.2012.docx
Equity Participation Note 4034 Manchester Road Akron Ohio 44319 1st mortgage SAMPLE FOR PUBLIC 8.27.2012.docx
o Evaluation Handout in the left pocket o 3 ring hole punch o PPT preso o 1 slide per page
Use the first 20 slides only Millennium Capital Inv FINAL 5.2.13.pptx
o right side Flyers and Handouts in right pocket Improving Communities Document.docx Neighborhood Flyer Document.docx IRA Vacation Flyer Document.docx Investment Highlights Document.docx Private Money IRA docs New Account Application Kit - Rev 03-12-13 1.pdf iPlan Promissory Note Investment Kit - Rev 04-03-13.pdf
OVERALL GOAL!!! definite timeline get the funding handed over to you What’s the desired outcome
o modules 1,2,3,4 iPlan group
o Joe Dunson David streeter josh pick the best deal on your doorstep
o module 5
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Tuesday May 21st o Identify your sweet spot
East Side RENTAL COMMUNITY
o Point of sale inspections South side
o retail buyers West side
o retail buyers $80,000 $150,000 to $120,000
o middle class neighborhoods most options
o Resources www.homesteps.com www.homepath.com www.hudhomestore.com www.hubzu.com www.auction.com
o Foundation for Success Fixer Formula #1 ARV x's 65% = total investment
$140,000 X's 65% = $91,000 $159,900 - $82,000 (4k) - $86
Fixer Formula #2 ARV
Minus 10% = sales price Minus 10% = net proceeds Minus repairs Minus $40,000 Equals highest possible offer
HPO minus 20% = Initial offer price
REHABBING SUCCESS STEPS outsource the improvements
o modules 6,7,8 FINAL expense budget melody 5.5.13.xlsx
o run the property launch formula - Mod 9 module 9 8575 Melody Lane Property Launch Open House Slideshow.pptx Expense Form Melody Ln..xls
Melody Lane 1.jpg Melody Lane 2.jpg
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Melody Lane 3.jpg Melody Lane 4.jpg Melody Lane 5.jpg Melody Lane 6.jpg Melody Lane 7.jpg Melody Lane 8.jpg Melody Lane drawing flyer.pdf Melody Lane drawing flyer4.pdf Melody Lane offer flyer.pdf Melody Lane offer flyer4.pdf Melody Ln Basement Part 2.png Melody Ln Basement Part 3.png Melody Ln Bathroom Part 1.png Melody Ln Bathroom Part 3.png Melody Ln EXT Pre-Launch 1.png Melody Ln EXT Pre-Launch 2.png Melody Ln Hallway Part 1.png Melody Ln Hallway Part 3.png Melody Ln New Wall Part 1.png Melody Ln New Wall Part 2.png Melody Ln New Wall Part 3.png melodyMLS.pdf
Property Launch Sign Up Melody.docx Raffle Melody.jpg
o 3-24-13 Property Launches Task List Bailey and Melody.accdb How to Plan a property launch Melody Lane and bailey Road Case Studies
3.12.2013.xmind What's working now Property Launches.xmind run the closing checklist
module 10 o track your cash
Bonus class 11o the truth about buyer financing
bonus class 12 38 Edgewood Drive Case Study
o notes Equity Participation Note 38 Edgewood drive Grafton Ohio 44044 1st
mortgage Pete Vagt 70k 5.20.2013 with notary FINAL.docxo mortgages
38 Edgewood drive Grafton Ohio 44044 1st mortgage Pete Vagt 70k 5.20.2013.docx
PURCHASE FNMA FORECLOSURE
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MLS LISTING o NOTHING SPECIAL
great neighborhoodo ranch
listing price doesn't matter o outdated
started low profit Projection
o Purchase $41,000o 38 Edgewood Dr FINAL PURCHASE HUD 1 5.6.13.pdfo 39796.72 net to close
Improvements o $25,000
Investment o $70,000
Profit up front o $4,000
List o $135,000
Sell o $115,00 - $120,000
Net $105 - $110,000 Profit $35,000 - $40,000 Turn Around Time
o 6 weeks o Property launch Scheduled for June 23rd o back up date June 30th o 38 Edgewood profit projection example 5.15.13.xlsx
HOW DID I FIND THESE PRIVATE LENDERS newsletter
o Peteo chemical engineero supplier to a big 3 car manufactures in Detroit o neighboro put onto newsletter list o sent newsletters over 6 months o talked over regular interactions
asked me to talk more specifically about what I do I put him off 3-4 times
attended graduation parties o finally sat down and talked formally over lunch
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took him a nice restaurant Funded another deal that closed 2 weeks ago Rolling his money into a new deal
they each got the newsletterPROJECT 100
write down 100 friends, family, network DiscoverYourSphere.pdf
o gather up their emails, phones and physical address o "Explain what you do?"
GARY KELLER KELLER WILLIAMS
o the millionaire real estate agent? Northwestern mutual
o FORTUNE 100 company o They come back after doing one deal and do more deals
1297 Steve Drive purchase FNMA FORECLOSURE MLS LISTING NOTHING SPECIAL great neighborhood ranch listing price doesn't matter outdated started low profit Projection Purchase $41,000 HUD Settlement Statement - 64710 1297 Steve drive purchase HUD
1.pdf 1297 Steve drive earnest money.png Improvements
o 33,000 Investment
o 90,000 Profit up front
o $4,000 List
o 149,900 Sell
o 135,000o 121,500 NET
Profit $35,000 - $40,000 Turn Around Time
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o 10 weeks HOMEWORK
convert the Millennium Capital Investments PPT into your own project 100
o begin networking with your project 100 to get their physical addresses, emails and phone numbers
o write down everyone you know by first and last name
o $40k flips coaching GOAL
o 1 private investor o fund 1 transaction o 1 reliable contractoro 1 40k flip property o $40,000
Self Directed IRA custodianso iPlan Group o Jill banner and Erica Kelly
1-855-604-7526 # 1
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