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BUYING AND SELLING REOs- Bank Owned Properties

BUYING AND SELLING REOs- Bank Owned Properties. Week 3 REO Boot Camp with Nancy Geils. Let’s Get Started.

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BUYING AND SELLING REOs- Bank Owned Properties

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  1. BUYING AND SELLING REOs-Bank Owned Properties Week 3 REO Boot Camp with Nancy Geils

  2. Let’s Get Started I have created a “back office” where you can access all the replays, documents, bonuses and everything I promised you in the Bootcamp! I have added a new ebook on “Exploding Your Business on Facebook” **Website: www.nancygeils.com/membership User name: REO Password: bootcamp

  3. What We Will Cover • Review Last Week • Building Your “Cash Buyers” List • Networking At Your Real Estate Group • MAO • FMV, ARV • How to Estimate Repairs • How to talk to your Rehab Buyers • Proof of Funds, One Day Funding

  4. Networking! • Contact your local area real estate investors. One of the simplest ways is to become a member. These groups meet on a monthly or weekly basis. They will discuss real estate issues, local market, opportunities, network and even exchange properties or deals! Go to Google and type in “real estate investing association in Your Town” You will start to learn and understand what your retail flippers are looking for in terms of properties, margins and more. Once you are sure that you have an investors who fixed up property for resale to the public (retail flipper – your cash buyer) then you should ask them some of these questions

  5. Questions to Ask Your Buyers • Do you purchase many homes? If so, how many? • Which type of properties do you specialize in? Price range, number of bedrooms, size, town • Do you have an email address and phone so I can send you information and details on properties I get? • How do you typically buy your properties? • If I brought you some wholesale deals, would you be interested? • How quickly can you close if the deal is right? • Do you have access to lines of credit? Or do you use your own cash? • What type of price range properties do you like to work with?

  6. Always Think Like Your Customers • Think like a retail rehab flipper! • Don’t forget that your customer is the rehab flipper and depending on your market area, will want a 20 to 35% margin on the property. This means that you must give thema built-in profit of at least 20 to 35% on the transaction. • For example – If the property in “fixed up” condition or (ARV) is worth 100k, and your cash buyer wants a 25% margin, tnhey would be interested in buying the property for $75K

  7. They Have More Risk! • Your Cash Buyers (Retail Flippers) are exposed to more risk and will spend more time and more money than you the Wholesaler.

  8. Call Ads In The Paper • When you see an Ad or a Sign in your town, you should call these ads and talk with the investor. Find out quickly what they do and what type of properties they buy. Are they a wholesaler too? Do they also Rehab properties? Many investors will use both strategies and use a combination of wholesaling and full rehab project ….which some of you also might want to do!

  9. Other Investors In Your Town • Don’t ever take the stance that other investors are your competition. Some of my best dealings have come from other investors who may be selling or providing similar services. You can always “team up” or “join venture” with other investors on a real estate deal. • Make friends with them!

  10. Place Your Own Ads • Here are a few Ads that work great on Signs! • I sell Fixer Upper Properties! Cheap! Fast Closings! Call 555-555-1212 I buy Houses For Cash! Fast, Fair, Friendly Call 555-555-1212

  11. Start Thinking Like An Entrepreneur • One of the most important “shifts” in your journey as a business owner will come when you truly begin to think like a entrepreneur.

  12. Inspecting a House For Repairs • My Husband, The Home Inspector

  13. Inspecting the House • Are you ready to learn how to inspect houses? You need this only if you are thinking about holding, rehabbing and then flipping! • Here is your Tool Box for Inspecting Property: • Flashlight • Binoculars: To Check roofs if you cannot go up there. • Poncho or Rain Gear – Oh Yes, for those rainy days • Camera – Digital camera so you can download pictures. A great way to remember all the houses you have seen • Clipboard with a pocket: Here I can keep all my business cards, flyers, pens/pencils and even contracts

  14. Inspection • The house inspection has several areas: • Exterior – siding, veneer, roof, etc. • While you are outside and inside the house you will write about the systems, whether they are missing, broken or good condition • Electrical, HVAC, Plumbing, Structural issues

  15. What To Look For Outside • Look for evidence of termites, dry rot and cracked foundations as you walk around the property. • Look for evidence that the foundation may have settled. • Look for discolored roof sections or indications that a portion of the roof may need replacing

  16. Septic Tanks • If there is a septic tank, look for lush green grass on top. This might indicate poor absorption due to bad drainage or broken pipes.

  17. Water Damage • Water causes 78% of the damages in a property • Water causes wood to rot, roofs to sag, ceilings to crumble and fall, walls to split and foundations to settle and crack. The other main problem with real estate is PEST INFESTATION. • Be alert for water stains on the walls or ceilings and cracks in the wallboard. Different colored carpeting in one or two rooms may mean a good sale at a local carpet store or it may mean that the carpet was replaced because of water damage!

  18. Should You Get Licensed? • Because Real Estate Investing is our only business we do full time, I became a Realtor and my husband is a Certified Home Inspector. If you are going to do this business full time, having these licenses make it easier but they are NOT necessary.

  19. Maximum Allowable Offer • You should know this “like the back of your hand” • Handy and Simple Way of Calculating your Maximum offer in just 5 Steps: • Step 1 = Retail price in “fixed up” Condition – After Repair Value • Step 2 – X .65 • Step 3 – MINUS Repairs • Step 4 – MINUS Your Wholesale Fee ( The fee you intend to earn $1000 – 10,000 – Always be reasonable!

  20. Determine Fair Market Value • You Must obtain “comps” on the property and make sure that you are looking at properties that: • Have recently sold at least 30 to 45 days ago • Are similar to the property you are considering, this means the same number of beds, baths and year built • www.sitexdata.com - 1ac1198 : 32911 • www.zillow.com • www.realtor.com • www.trulia.com

  21. Margins • The next step is to determine how much margin the retail rehab flippers in your area will need. Remember that the retail flipper will be buying the contract, which you place on the house from you. They will then own the property, rehab it and then sell it to another retail buyer. Before you can determine the price to sell to your cash buyer, you must have a very good idea of what type of margins these rehab cash buyers need. This is not something I can teach you, you must meet or talk with the rehab cash buyer in your area and determine what margins they want and need.

  22. Try to Think Like a Rehab Buyer • Always think like your customer! Your customer is the rehab cash buyer. Most of the time these rehabbers will want a 20% to 35% margin on the property. This means that you must give them a built –in profit of at least that amount! • Keep in mind that they will be exposed to more risk, time and money than you as the wholesaler.

  23. Getting Your First Deal • 1. Stick to properties that appear to be in very good condition. Many of the REOs are in good condition. • 2.Learn this business inside and out. The highest paid people in all industries are those who have specialized knowledge. Get accustomed with the price of materials, repair costs, renovation procedures, etc. the more you know, the better deals you can put together and the more deals you can do! • 3. I suggest you increase your repair estimate by 10%. Most repairs always cost more than expected and unanticipated costs seem to come out of “nowhere”. Buy adding 10% to your estimate of repairs you increase the likelihood of putting together an outstanding deal for your rehab flippers!

  24. You Got a deal, now what? • Great Tip: Seek out and locate the biggest landlords in your city. There is at least one in just about every city. This is the guy/gal that owns 200+ rental properties in his portfolio…and pays cash for them. Call the president of the REIA, it might be him. Talk to people, Ask around as to who the major buyer of rental properties is. When you find him/her call them on the phone and tell them what you do. You wholesale properties for .50 on the dollar! Ask what kind of property he looks for . Get to know him or her. This is GOLD!

  25. Some Sites To Post Your Deal • www.postlets.com • www.rehablist.com • www.local.com • www.hoobly.com • www.propsmart.com • www.theinvestmentpropertylist.com • www.hotbargainproperties.com A good thing to do also is create flyers and pass out at local REIA meetings.

  26. Signs To Sell Your Property • Put out 5 – 10 Bandit Signs in busy intersections around the property” AND Put on Craigslist. • HANDYMAN SPECIAL! • MUST SELL IN 3 DAYS, • TONS OF EQUITY! • CALL 203-555-1212

  27. Send Your Emails • Send out mass emails to your buyers list and everyone you know. (Sell it! Put the address, specs, ARV, selling price and pictures. ( I will show you my Flyer again below)

  28. Buyer Seems Serious and Able, Now What? • Make sure your buyers are serious and have the money! • Ask these questions first: • - How do you plan on funding this deal? Cash? • - I require a $1000 earnest money deposit if you approve of the property and we sign a contract. The most experienced investors will not spend a great deal of time asking questions about the features of the house or the neighborhood. If you are responding to a call back from an experienced investors, they will have run the number and will know what the property’s true comparables are and wherher the deal is a pass of go! (This is what I do!!)

  29. Let’s Review! • What have we learned so far?

  30. How To Find a Good REO Realtor • The secret is developing Relationships! Google REO Brokers in your town. Try www.REOBroker.com • Go online to www.Realtytrac.com (trial 30 day) • Ask other Realtors when you call if they have Realtors in their office who specialize in bank owned foreclosures and talk to them

  31. Sites to Visit To Find Deals • www.homepath.com– My personal favorite • http://reo.wellsfargo.com/WBREOHome.aspx • Bank of America - REO Search • Branch Banking & Trust (BB&T) - REO • Chase Bank - REO Search • CitiMortgage - REO Search • EMC Mortgage - REO Search

  32. More Sites for REOs • GMAC Mortgage- National REO Search • HSBC - REO Search • IndyMac Bank - REO Search • IAS - Integrated Asset Services - REO Search • M&T Bank - REO Search • People's United Bank - REO Search • Regions Financial Corporation - REO Search • Suntrust Mortgage - National REO Search • U.S. Bank Home Mortgage - REO Search • Wilshire Credit Corporation - REO Search

  33. How to Work With Realtors When you speak with REO Realtors(your language and what you say is important) Tell them what you are looking f0r -Have them put you on an automatic email list of all new foreclosures that come available! -Tell them you are a Real Estate Investor in the area and have cash to Buy and you have many buyers in your group (Real Estate Investing Association) that have cash and can buy quickly.

  34. Best Tips for Finding Deals • Ask your Realtor to send you the hot list every week of new deals and especially the deals that “have come back on the market” These deals have fallen thru some reason and now the banks will be even more anxious to sell that deal and you can get it for an even lower price!

  35. Build Your Team Before A Deal Comes! • You have already talked with and lined up the important power team to help you close your deals! • Attorney’s, Title companies • Realtors • Perhaps Partners??? • Accountants • Friends that you have networked with at REIAs • Hard money lenders – I recommend Brookview Financial – Go to www.brookviewfinancial.com, ask for John Mcewen and tell them Nancy Geils sent you to get preapproved!

  36. The Steps to The REO Deal • Build Buyers List • Make Offers and Get one Accepted by Bank – make sure it has the 10 – 15 day inspection contingency in the contract so if you don’t have a buyer you can walk away from the deal! • Call or email your cash buyers and tell them about the house. The more info the better! • Tell them it is a first come first serve basis! • Get it under contract with your cash buyer (get a deposit from them. I get the amount I had to put down with the bank!) Make sure they are paying CASH! (Get them to give you proof of funds)

  37. Submit your info to ivisionary for the 1day funding • Close the deal. With Cash there are no snags that can happen! You cannot close these deals if your buyer is getting a mortgage…(Unless they are using hard money and that is okay to do) • Now Rinse and Repeat!!!!!!!!!!!!!!

  38. Proof of Funds • You must have a proof of funds letter when you are submitting there offers. • http://www.ivfinancialsolutions.com/pof • Keep this website link above because this is where you get automatic proof of funds letter!

  39. One Day Funding Here is your website to get your One Day Cash http://www.ivfinancialsolutions.com Transactional Funding was created For Short Sales and REOs Can Help You Break Into Real Estate Investing Without Any Of Your Own Money or Credit!

  40. Got This Deal Under Contract Short Sale Approved! • On MLS for 45 days at $116K, Price lowered to $109k. • www.Google.com • I got this under contract for $85k • Needs 10k Fix Up • ARV = $150k • My wholesale will be 10K.

  41. My Flyer To Find My Cash Buyers Your Price- Only $95,000 Fair Market Value- $150,000 123 Main Street, Bridgeport CT 3/1 1200sq ft Very Good Condition, Cosmetic Repairs Needed only (Approximate $5 - 10k) – Great North end neighborhood! Major Profit Potential on this one- you do the math! First Come - First Serve! Call me at xxx-xxx-xxx

  42. New Deal I Am Looking At: Trumbull, CT Bank Wants $265k Needs $25 – 40K ARV = $ 400 – 450K 4 Bed, 2 ½ Bath Open Floor Plan, built in pool in back. Needs new kitchen, 2 new baths, paint and clean up I will offer FULL PRICE $265K – My offer will be 265k, CASH, no contingencies and close in 30 days

  43. Nancy Recommends • Ring Central for a telephone number- $100/yr • www.ringcentral.com • Bandit signs www.banditsigns.com • Vista Print for Business Cards – Free • www.Vistaprint.com • www.Sitexdata.com – 30 day trial - 1ac1198     32911

  44. Real Estate Websites • If interested in getting a website put up for your real estate deals, I can set up a website for you. Contact me separately at 800-804-5390 or email me at reotrainingforyou@gmail.com • I can set up a site similar to www.BuyThisHouseSite.com

  45. To Do’s Before Our Next Training • Keep putting Ads on Craigslist to build your buyer’s list. Use the ones I showed you! • Find REO Brokers and talk to them! Build relationship with them. • Look at least 5 properties that you get from the Realtors and learn the MAO and the After Repair Values! (Practice) Call me and I will help you! 800-804-5390

  46. Homework For You To Do • Get signs ordered if you haven’t already • Continue networking with Realtors! Find at least 2 REO Realtors that will work with you – Remember tell them you have cash and are a member of investors who can buy quickly and have cash! • Get Organized…Set up your “business” i.e. phone, fax, internet if you haven’t already • Go to a REIA meeting in your area • Call me for support and questions anytime you need help! I am here to help you • If you are successful, I am successful!

  47. Next Week We Will Cover • Review • How to Get One Day Funding and complete the one day funding • More on ARV and MAO • More on Building Your Team To Help You • Hard Money and Financing • Holding and Rehabbing (If you find a really • Good deal and don’t want to Flip to investor)

  48. GO GET A DEAL! • Walk past your fear, fake it till you make it!!

  49. Have a Successful Week Nothing can stop the man with the right mental attitude from achieving his goal; nothing on earth can help the man with the wrong mental attitude. -Thomas Jefferson- And one quote just for fun..... If at first you don't succeed, try, try again. Then quit. There's no use being a damn fool about it.W.C. Fields

  50. Call Me For Support • My Number is 800-804-5390 • Your Private email is reotrainingforyou@gmail.com • Go to www.nancygeils.com/membership This is where you will find replays, copies of this presentation the 6 part training bonus on “buying/rehabbing and flipping house training. TUESDAY NIGHT 8PM – REPEAT TRAINING – Feel free to come to that too!

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