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The. Complete Guide to. Getting. Started. Day 1 Finding & Analyzing Deals. Day 2 Choosing A Profit Strategy. Day 3 Putting It All Together. Day 1 Finding & Analyzing Deals. Creating Wealth with Real Estate. Finding Deals. Motivated Sellers. Where to Find Deals. Targeting Sellers.

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  1. The Complete Guide to Getting Started Day 1 Finding & Analyzing Deals Day 2 Choosing A Profit Strategy Day 3 Putting It All Together

  2. Day 1Finding & Analyzing Deals Creating Wealth with Real Estate Finding Deals • Motivated Sellers • Where to Find Deals • Targeting Sellers Evaluating Discount Property Evaluating Income Property & Cash Flow Financing With No Money Down Conventional Financing

  3. Day 1Finding & Analyzing Deals What will it take for you to be wealthy?

  4. Day 1Finding & Analyzing Deals • Learn The Wealth Formula • Learn Types of Income • Develop Millionaire Mindset • Implement Wealth Formula • GET STARTED

  5. Day 1Finding & Analyzing Deals “The Wealth Formula” Constant Investment Time For Growth What Yield Will You Learn To Get Wealth Result

  6. “Stage One Investing” Day 1Finding & Analyzing Deals • Amount Invested $165 Per Month • Time Period 25 Years • Rate of Return ??????? • Financial Goal $1,000,000

  7. $3,800,000!! $1,400 K Linear Rates 535,000 218,000 114,000 73,000 49,500 Twenty-Five Years Day 1Finding & Analyzing Deals 25% 20% Money plus Knowledge 15% 10% Amount Invested $165 a month 6% 3% 0%

  8. Day 1Finding & Analyzing Deals $3,800,000!! 25% $1,400 K 20% Or Residual Rates? 535,000 15% 218,000 10% 114,000 6% 73,000 3% 49,500 0% Twenty-Five Years

  9. Time For Money Results For Money Assets For Money Types of Income Day 1Finding & Analyzing Deals Linear Residual

  10. Wealth Characteristics Day 1Finding & Analyzing Deals • Burning Desire • Goal Oriented • Decisive In Nature • Surrounded By Master Mind Team • Specialized Knowledge

  11. Real Estate Flip Day 1Finding & Analyzing Deals • Buy For $150,000 • Sell For $180,000 • Profit $30,000

  12. Yield Day 1Finding & Analyzing Deals Profit Rate of Return Investment $ 30,000 20% $150,000

  13. Leverage Day 1Finding & Analyzing Deals $120,000 from Bank $150,000 Price $30,000 from You $30,000 100% $30,000

  14. Balance Day 1Finding & Analyzing Deals Business Linear Income Assets Residual Income

  15. Day 1Finding & Analyzing Deals Creating Wealth with Real Estate Finding Deals • Motivated Sellers • Where to Find Deals • Targeting Sellers Evaluating Discount Property Evaluating Income Property & Cash Flow Financing With No Money Down Conventional Financing

  16. Day 1Finding Deals/Motivated Sellers Day 1 - Finding & Analyzing Deals GOALS • At the end of this session, you will be able to: • Recognize a motivated seller • Summarize why sellers become motivated • Explain how to target motivated sellers

  17. Finding Deals/Motivated Sellers Day 1 - Finding & Analyzing Deals • Types of Motivated Sellers: • Price (wholesale) – willing to discount the price to get a quick sale • Terms – willing to discount the terms to get a quick sale

  18. Finding Deals/Motivated Sellers Day 1 - Finding & Analyzing Deals Reasons Sellers Become Motivated • Personal – affect only the seller • Property –attach to the property • Economic – relate to general location or the local economy

  19. Finding Deals/Motivated Sellers Day 1 - Finding & Analyzing Deals Reasons Sellers Become Motivated Personal • Owner’s location • Health • Retirement • Divorce • Financial • Job Transfer • Tired Landlord • Death in the family • Poor Management • Bad Partnership

  20. Finding Deals/Motivated Sellers Day 1 - Finding & Analyzing Deals Reasons Sellers Become Motivated Property • Poor Management • Poor Financing • Property Condition • Obsolescence

  21. Finding Deals/Motivated Sellers Day 1 - Finding & Analyzing Deals Reasons Sellers Become Motivated Economic • Local Economic Changes • Local Neighborhood Changes • Law Changes • Zoning, Rent Control, etc.

  22. Finding the Deals/Where to Locate Day 1 - Finding & Analyzing Deals Realtors/MLS • Types of sellers • Pros • Cons • Tips

  23. Finding the Deals/Where to Locate Day 1 - Finding & Analyzing Deals Newspapers • Types of sellers • Pros • Cons • Tips

  24. Finding the Deals/Where to Locate Day 1 - Finding & Analyzing Deals Legal Newspapers • Types of sellers • Pros • Cons • Tips

  25. Finding the Deals/Where to Locate Day 1 - Finding & Analyzing Deals Driving for Dollars • Types of sellers • Pros • Cons • Tips

  26. Finding the Deals/Where to Locate Day 1 - Finding & Analyzing Deals Foreclosures • Types of Sellers/Foreclosure Process • Pros • Cons • Tips

  27. Finding the Deals/Where to Locate Day 1 - Finding & Analyzing Deals Bird Dogs • Types of sellers • Pros • Cons • Tips

  28. Finding the Deals/Where to Locate Day 1 - Finding & Analyzing Deals Courts • Types of sellers • Pros • Cons • Tips

  29. Finding the Deals/Where to Locate Day 1 - Finding & Analyzing Deals Bird Dogs/Networking • Types of sellers • Pros • Cons • Tips

  30. Finding the Deals/Where to Locate Day 1 - Finding & Analyzing Deals Advertising • Flyers • Business Cards • Newspaper Ads • Direct Mail • Car Signs • Radio & TV • Website • REIA Groups • Expired MLS • Yard Signs

  31. Finding the Deals/Where to Locate Day 1 - Finding & Analyzing Deals Advertising • Types of sellers • Pros • Cons • Tips

  32. Finding the Deals/How to Target Day 1 - Finding & Analyzing Deals Contacting Sellers • Advertising • Direct Mail • Telemarketing • Drive bys/Door knocking

  33. Evaluating Income Property Day 1 - Finding & Analyzing Deals SESSION REVIEW • What we covered this session: • How to recognize a motivated seller • Why sellers become motivated • How to target motivated sellers

  34. Day 1Finding & Analyzing Deals Creating Wealth with Real Estate Finding Deals • Motivated Sellers • Where to Find Deals • Targeting Sellers Evaluating Discount Property Evaluating Income Property & Cash Flow Financing With No Money Down Conventional Financing

  35. Evaluating Discount Property Day 1 - Finding & Analyzing Deals GOALS • At the end of this session, you will be able to: • Summarize key focal points of valuing and analyzing discount property • Explain how to use a CMA • Perform a discount analysis

  36. Evaluating Discount Property Day 1 - Finding & Analyzing Deals 7 Steps of Evaluation • Find the Property • Find the comps • Estimate Repairs • Estimate Costs • Evaluate Exit Strategies • Estimate Profit Potential • Complete Acquisition Sheet

  37. Evaluating Discount Property Day 1 - Finding & Analyzing Deals Focal Points • Location • Property Condition • Price • Financing • Seller’s Motivation/Flexibility

  38. Evaluating Discount Property Day 1 - Finding & Analyzing Deals Comparables (Comps) • Address • Sq footage • Age • Bedrooms • Baths • Gar/Carport • Lot Size • Construction • Price • Days on Mkt • Extras • Distance • Subdivision • Appraisals

  39. Evaluating Discount Property Day 1 - Finding & Analyzing Deals Finding Comps • Tax Rolls • Web Sites • MLS/Realtors • Driving for Dollars • Listing Services

  40. Evaluating Discount Property Day 1 - Finding & Analyzing Deals Estimating Repairs • Initial Self Inspection • Measuring Tape • Ground Tester • Marble • Screw Driver • Software • Licensed Inspector

  41. Evaluating Discount Property Day 1 - Finding & Analyzing Deals Estimating Costs • Buying Costs • Holding Costs • Closing Costs

  42. Evaluating Income Property Day 1 - Finding & Analyzing Deals SESSION REVIEW • What we covered this session: • Key focal points of valuing and analyzing discount property • How to use a CMA/Find Comps • How to perform a discount analysis

  43. Day 1Finding & Analyzing Deals Creating Wealth with Real Estate Finding Deals • Motivated Sellers • Where to Find Deals • Targeting Sellers Evaluating Discount Property Evaluating Income Property & Cash Flow Financing With No Money Down Conventional Financing

  44. Evaluating Income Property Day 1 - Finding & Analyzing Deals GOALS • At the end of this session, you will be able to: • Define key terms of cash flow analysis • Explain how to perform a cash flow analysis • Recognize pitfalls of cash flow analysis

  45. Evaluating Discount Property Day 1 - Finding & Analyzing Deals Cash Flow Analysis __________ Projected Gross Income __________ − Vacancy Loss __________ − Collection Loss __________ = Effective Gross Income __________ − Fixed Expenses __________ − Variable Expenses __________ = Net Operating Income __________ − Debt Service __________ = Pre-tax Cash Flow

  46. Evaluating Discount Property Day 1 - Finding & Analyzing Deals Cash Flow Analysis Projected Gross Income: Monthly rent 12 Vacancy Loss: Accounts for time when property is not rented Effective Gross Income: Amount that remains to pay expenses Fixed Expenses: Any cost not related to occupancy

  47. Evaluating Discount Property Day 1 - Finding & Analyzing Deals Cash Flow Analysis Variable Expenses:Any additional costs Net Operating Income:Income before any mortgage payments Debt Service:Mortgage payments Pre-Tax Cash Flow:Cash flow before paying taxes

  48. Evaluating Discount Property Day 1 - Finding & Analyzing Deals Pitfalls of Cash Flow Analysis • Overestimation of income • Lease price vs. actual rent • Undervaluation of vacancies

  49. Evaluating Discount Property Day 1 - Finding & Analyzing Deals Pitfalls of Expenses • Underestimation of fixed and variable expenses • Omission of expenses • Omission of maintenance expenses

  50. Evaluating Discount Property Day 1 - Finding & Analyzing Deals Estimating Expenses • 20% of effective gross income • Three years of tax returns • Audited financials • Management company reports

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