Millionaire Real Estate Investing with Jim Pellerin
Episode #116 - How to Decide Which Real Estate Deals is Best for You

Episode #116 - How to Decide Which Real Estate Deals is Best for You

October 2, 2020

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One of the things when looking for real estate opportunities is you have to decide what properties or deals are right for you. By right for you, I mean which ones make the most sense for you to invest in. That will depend on a number of things.πŸ˜οΈπŸ€πŸ‘πŸ’²

You want to look at what your exit strategy is going to be like and ask yourself what your long-term game plan with investing is.

For example, are you looking for properties to buy and hold? Or are you looking for properties to flip meaning fixing or flip, or are you a wholesaler? Are you looking for properties just to pass over to somebody else who is going to do the fix and flip?πŸ˜οΈβš’οΈπŸ‘¨β€πŸ’Ό

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It is crucial for you to do some financial calculations when looking for properties, as well as a number of other things I will discuss.

You want to look at the financial viability of the property.Β 

You also want to look at the current situation of the property. You want to look at the location of the property.πŸ‘€πŸ˜οΈ

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The nice thing about doing all this is that you are able to do your analysis right from your desk. A lot of people go out and they start looking for properties in an area. We call this driving for dollars. That seems like a lot of work for me.πŸ‘πŸ€”πŸ–₯οΈπŸ’²Β 

The great news is there is a lot of online ability now when looking for properties.Β 

You can go and do a lot of searches on a lot of different sites and you can find properties that you can analyze based on what is right for you.Β 

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You can go to online classified ads, you can go to MLS and you can go to auction sites. Again, when you are looking for these properties, you have to make sure that you're okay, analyzing them with your long-term objectives in mind.πŸ’»πŸ—žοΈπŸ˜οΈβ³

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Some of the criteria might be the price of the house. A lot of people who are doing fix and flips, or if you are doing wholesaling, you want to make sure that you can get the property and anywhere from 50% to 65% of the after repair value of the property then is right for you.πŸ’²πŸ˜οΈπŸ‘¨β€πŸ’ΌπŸ‘Β 

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If you are looking at buying the property and holding it, and it is in good condition, maybe you only have to look at properties that are cash flowing. That is a different type of analysis. What you look at in this case is what can you purchase the property for … what is the financing costs and the ongoing maintenance of that property, and then what the rents are going to be. You are looking at a cash flow analysis.πŸ˜οΈπŸ‘πŸ’²βš’οΈπŸ€”

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So, again when looking for properties, make sure you find properties, that are right for you.πŸ‘€πŸ˜οΈπŸ€πŸ‘

Episode #115 - Why You Need Motivated Sellers

Episode #115 - Why You Need Motivated Sellers

October 1, 2020

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I want to talk about motivated sellers and why you need motivated sellers. One of the big things in real estate investing is you are always looking to make a profit. Obviously, otherwise, you wouldn't be investing in real estate.πŸ‘¨β€πŸ’ΌπŸ’°πŸ˜οΈ

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The best way to make a profit is when you buy it. One of the ways you buy or should be buying is always looking for motivation. Meaning you are always looking for people that own properties that are motivated to sell.πŸ’°πŸ‘€πŸ‘¨β€πŸ’ΌπŸ˜οΈ

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Now, what does motivation mean? So people are motivated to sell for many reasons. Well, actually there are three quick reasons. Death, Divorce, and Debt.Β  death means if there is a property and the owner dies, or one of the owners dies and either the person, if it's a spouse now stuck with the property and they are trying to figure out what to do with it, and they have to sell it, or if it's owned by a parent or somebody who leaves you their property.β˜ οΈπŸ‘«πŸ’°πŸ˜οΈ

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Now you have this property, you don't know what to do with it so you've become an accidental investor or an accidental landlord. Meaning it's something that you've acquired accidentally. Now you are trying to figure out what to do with it.πŸ‘¨β€πŸ’ΌπŸ˜οΈ

As a result of death, you own this property.Β 

Another one is divorced, going through a divorce. You are now a single person and you are trying to maintain the payments on the property and you just can't keep up. As result, you are motivated to sell it as well.πŸ‘«πŸ˜οΈ

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The last one is debt. As a result of spending, or you got yourself in a difficult situation, you've accumulated a lot of debt. Maybe it's not your fault. Maybe it was a result of a job loss, or you've moved. It's a whole bunch of scenarios that fall under that debt.πŸ’°πŸ˜οΈ

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Negotiating with motivated sellers is called a business negotiation which is quite simple. You explained to them what you are looking for, because usually when you are looking for properties for motivated sellers you should try to do one of two things:πŸ—£οΈπŸ‘¨β€πŸ’ΌπŸ˜οΈ

You are either trying to wholesale it, which means you are trying to acquire the property so that you can give it to somebody who's going to fix and flip it, or you are trying to acquire the property and maintain and hold on that property as a rental.

Either way, you want to try to acquire the property at a price that's as low as possible so that you can make money when you purchase it. This is why you want to have motivated sellers. Now it may sound very predatory based on what I've just said. I told you, but not at all. Usually, these people are in a difficult situation and they are looking for a solution and you can become that solution.πŸ˜οΈπŸ’°πŸ‘¨β€πŸ’Ό

To recap, when looking for real estate to invest in, make sure you are always looking for motivated sellers.πŸ‘€πŸ‘πŸ‘¨β€πŸ’Ό

Episode #114 - How to Manage your  Customer Search

Episode #114 - How to Manage your Customer Search

September 30, 2020

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One of the things you want to do when looking for properties is being able to manage your search properly. What I personally do is use some tools to manage my search. The first one is an RSS reader called Innoreader.βš’οΈπŸ”πŸ““

What I ultimately do is go out and search all these databases where people list properties.

Because I am looking for properties for motivated sellers, I am looking for the keywords in the posting such as: have moved, need work, motivated sellers. Yes, they will put that in there. From there I will search on different databases such as Craigslist and Kijiji and then create a spreadsheet. It’s a simple spreadsheet.πŸ‘¨β€πŸ’ΌπŸ’»πŸ“‹

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I put a little note in there saying I sent this person a request and usually it is a request to say something like … listen, I'm an investor. Would you be interested in selling me your property? What's your current situation? If so, get a hold of me.Β 

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If those same properties are listed for rent or for sale at the same time, you will know they are pretty motivated.Β 

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The first thing I do is I'll put the list of properties in a spreadsheet, nothing fancy. And then I just track it that way. The reason I do that is a lot of those places will repost their properties for sales. I don't want to contact the same person day in, day out, right. Once I've contacted them once I don't bother them again, even though they may delete and repost in those ways, I can do that to make sure a simple check to see if it's the same listing of the same property. What I do is track all of those in a spreadsheet.πŸ“‹πŸ˜οΈβ³

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I've had a list of 2000 homes in that spreadsheet at one point. When somebody replies to me, I'm engaged. Then I’ll add those people to a CRM, a customer relationship management system. I use HubSpot CRM to do that because it's free. Now I have an entry in there. I do a bunch of follow-ups with that person.πŸ˜οΈπŸ‘¨β€πŸ’ΌπŸ“‹

Β I do an assessment and I track everything within that CRM.

I then know what the conversation is going to be because usually at any one point I've got probably 10 to 15 properties or 10 to 15 property owners that I'm talking to.Β 

I want to be able to keep track of what I'm doing with them inside the CRM.

You can also put task lists to notify or to do a follow-up. For example, this morning, I've got four people to follow up with on a specific search on doing. It allows you to manage your activities fairly well. Now some people can do this on a desk or on a piece of paper and that's fine if that is what you want to do, but I'm just telling you the nice automated way in which you can manage your search for the properties.πŸ“‹πŸ‘¨β€πŸ’ΌπŸ˜οΈ

Again, when looking for properties, you are always looking for motivation.

So there are different things you can do there. Some CRMs have phone integration, so you can actually dial directly from your computer if you've activated the phone integration. It’s neat. Technology can really be your friend on these searches.πŸ“‹πŸ“žβŒ¨οΈπŸ”

As mentioned, it's as simple as a simple spreadsheet moving to a CRM and then you can actually automate some of the follow-ups for people that don't buy. You can put them on an email blast through an autoresponder. Those are different ways in which you can manage your search and you want to make sure you manage your search. Cause it will get out of hand if you have a lot of properties that you are looking at.πŸ“‹πŸ“§πŸ”πŸ˜οΈ

Episode #113 - What is Cash Flow

Episode #113 - What is Cash Flow

September 29, 2020

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What is cash flow in real estate investing?

Cash flow is usually associated with a rental property because of its ongoing cash flow.

What happens is when you are buying a rental property; you have to do a financial analysis that is going to determine whether the property will cash flow or not.Β  The first thing you need to do is you want to analyze all the expenses as part of owning that property.πŸ˜οΈπŸ’²

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Now, this is where it gets tricky because a lot of people ignore certain expenses. The basic expenses are going to be your mortgage payments, your tax payments, your insurance payments.Β 

Those are the three that you have to pay no matter what. Here's where it gets tricky. A lot of people don't put in any estimate for things like maintenance. πŸ’°πŸ‘¨β€πŸ’Όβš’οΈ

If you own a rental property, no matter where it is, no matter how new it is, you are going to have maintenance.

There are going to be some things that you are going to have to do with that property to maintain it, as a property owner.Β 

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The other thing is property management. A lot of people ignore that expense because they say: well, I am to manage that property myself. And that's fine and good. Especially if you are only going to ever own three or four or five properties, you could probably do that property management yourself. But what it also means is if you don't put any money in there that you are working for free.πŸ˜οΈπŸ‘¨β€πŸ’Ό

Because any time that you spend going to that property, you are not given it any value.Β 

There is no way to expense that to your spreadsheet. It also makes your property look good because now it's cash flowing.πŸ’°πŸ“πŸ˜οΈ

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The other thing you want to put in there is an allowance for the vacancy, no matter how good you are at finding tenants, no matter how good your tenants are, you will have some vacancy in your property at some point.

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So those are the three different expenses that I see people leave out when they do a financial analysis. They grab the first three which are the mortgage payment, the tax payment, the insurance payment and then they record that. Or they put that into their financial calculator, their financial analysis, but they just ignore the maintenance costs, the property management costs, and the vacancy costs. Once you put all those in, and then you have what I consider all the expenses required to own a rental property.Β 

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Now you look at that, compare the rents to that and you look at the difference between the rents minus those expenses. That's what you have what's called cash flow. Cash flow can be anywhere from $20 a door or even $200 a door. A door means per unit. The reason they say a door, is because sometimes there is more than one unit in the property.πŸ’²πŸ˜οΈ

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You have single-family homes, you have a duplex and you have two doors on the property, a fourplex, you have four doors, apartment buildings have many doors. You could have, 10, 20, a hundred doors.Β 

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So make sure that your properties cash flow.Β 

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The other thing I see is people will say: well, it doesn't have cash flow right now, or I can't find properties in this area to cash flow. They start tweaking the numbers to try to make it cash flow, or they say, well, the properties are really appreciated in this area So I'm going to hold onto the property until it does cash flow. I would never do that.πŸ‘¨β€πŸ’ΌπŸ’²πŸ˜οΈ

I want you to make money on your properties the day you buy it.Β 

You want to make sure it includes all your expenses and do due diligence on those expenses and make sure your property is cash flow right from the get-go.πŸ’²πŸ˜οΈπŸ”ƒ

Episode #112 - What is Appreciation

Episode #112 - What is Appreciation

September 28, 2020

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One of the questions I get asked a lot is what appreciation is. And no, it's not a nice recognition for doing something well where people appreciate you.πŸŽ–οΈπŸ’²

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Appreciation in real estate means where your property actually increases in value.

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There are two ways properties increase in value. Well, there are at least two ways in which properties increase in value. The first one is just by market appreciation. Over time, you are going to have a property.πŸ˜οΈπŸ“ˆ

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Let's say you paid $200,000 for it. And after a year, the market's gone up meaning the houses in the area are higher and people are paying more for those kinds of houses. Now that $200,000 property, maybe it's worth $205,000 or $210,000 after a year, or maybe after five years, it's worth 250,000.πŸ’²β³πŸ˜οΈ

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The difference between what you bought that property for, which was the 200,000, and what it's now worth at the time is $250,000.The difference is 50,000.

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That is the appreciation that the property has incurred. The bad thing is depending on what the situation is, where we are in the global markets, what is happening right now with this pandemic, the property could decrease in value and that is called depreciation. When the property is worth less than what you originally paid for, they call that organic appreciation or organic depreciation, meaning you had nothing to do with that.πŸ˜οΈπŸ’°

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It was the surrounding market values that affected the appreciation or depreciation.Β 

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Another thing you can do is you can actually force the appreciation and the way you do that is through renovations and through changes that you make to the property/house that you bought. For example, let's say you buy a property and the market value is let's say it's $300 000, but you get that property for $200,000 because it's rundown; and it needs a lot of work.βš’οΈπŸ˜οΈπŸ’°

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What you can do is you can go in and make changes to increase the value of that property.Β 

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A few other changes might be upgrading the kitchen, the bathrooms, or maybe putting a basement apartment in and so on. Then you want to look at the surrounding area and ask yourself: will those changes increase the value of the property? Now that $200,000 property you bought is worth $300,000 based on the after repair market value of that property. You forced the appreciation by making the changes to that property.β€΄οΈπŸ˜οΈπŸ’°

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Now let's say you bought it for $200, 000, you put $50,000 into it, and it is now worth $300 000. The appreciation is a $100 000 that you've forced for that property, although it would cost you 50,000 to do it. Your net appreciation would be 50,000 in that case.

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You want to make sure that when you buy properties that you understand the appreciation and that there is the ability to either appreciate the property through organic or forced appreciation.πŸ’°πŸ˜οΈπŸŽ–οΈ

Episode #111 - Don’t Let All The Education And Planning Go To Waste

Episode #111 - Don’t Let All The Education And Planning Go To Waste

September 25, 2020

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A lot of times people get stuck when it comes time to get to that next step.Β 

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When looking at real estate investing, people go out, they sign up for this course, they'll sign up for a mentorship program, they'll do some reading … reading all these books and they never really take it to the next level where they become an investor.πŸ‘€πŸ˜οΈπŸ‘¨β€πŸ’Ό

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I see it all the time, especially on all these forums I participate in … all these online bulletin boards that I read. People are talking about so many details of things they are working on such as I'm trying to do my website. I'm trying to get my business cards done. I don't know if anybody uses business cards anymore. Β There is so much preparation. I need my logo. I'm coming up with my USPΒ  etc … Now all that stuff makes sense. Sure but β€¦πŸ’»πŸ“‹

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Don’t let it stop you from actually becoming a real estate investor.

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There's no reason why you can't do both those things in parallel. What you need to be doing is you need to be going out at the same time and looking for properties.Β  That is the only way you are going to learn.Β 

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To become a real estate investor, don't let all that education that you are going through go to waste.Β  Make sure that you go out and make sure that you are putting in offers. Make sure that you are actually talking to people.πŸŽ“πŸ‘©β€πŸ«πŸ‘¨β€πŸ’Ό

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Networking is a big part of investing, especially when you are just started out. People need to know that you are a real estate investor that you are involved in real estate investing. There are many ways of doing that.Β 

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You’ve got to build your brand.Β 

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I see a lot of people and I hear a lot of people who have taken courses and they literally are in their basement reading another book about how to do this or taking this other program.

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They are always looking for this silver bullet, this magic thing. I saw this webinar the other day. And this guy was talking about how people can find properties for him. He was putting together a program that he was selling and he was actually recruiting bird dogs at the same time, kind of ingenious actually. πŸ₯ˆπŸ’»πŸ‘¨β€πŸ’Ό

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But during the webinar he said, so what you got to do once you find somebody is you got to get on the phone with them and somebody in the chat room wrote you mean, I actually have to call these people.Β 

Yes, you are going to have to talk to sellers.

If you ever want to become a real estate investor, no matter what type of real estate investing you are doing out of all the different ways to get involved in real estate.Β 

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You are going to make an offer and eventually, you are going to have to get involved with some kind of communication with these guys. πŸ€πŸ—£οΈπŸ‘¨β€πŸ’Ό

Don't let all your education go to waste. Make sure that you are making an offer and you go to that next step, which is actually investing in real estate.πŸŽ“πŸ‘©β€πŸ«πŸ€

Episode #110 - What Does it Mean to Invest in Real Estate

Episode #110 - What Does it Mean to Invest in Real Estate

September 24, 2020

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There are many ways to invest in real estate and when I say invest, I use the term lightly.Β 

Usually, when you think of invest, you think of actually conducting a financial transaction, You are investing in something, but you can invest your time as well.πŸ“ˆπŸ’²

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There are many different ways that you can invest in real estate without having to do a financial commitment or a financial transaction

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I am going to list off just a few of them.Β 

The first one is doing what is called bird-dogging. You can actually find a property for another person and transact that activity by referring that property to another person. Usually, that other person is somebody who is doing wholesaling or somebody who is doing fix and flipping. You are investing your time here in this type of transaction.πŸ¦πŸ•πŸ’²πŸ˜οΈπŸ‘¨β€πŸ’Ό

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There is not a lot of money involved in this type of investment that is called bird-dogging.Β 

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Another transaction is called wholesaling. Wholesaling is similar to bird-dogging. You've got more skin in the game from a time perspective and you also are part of the transaction. You will actually be making an offer to purchase as a wholesaler.β³πŸ‘€πŸ‘¨β€πŸ’Ό

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Then once you put the property under contract you are going to flip it over to a flipper, to somebody who is looking for properties, like the ones you are doing.

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They call it wholesaling because you are buying low and you are selling to a retailer.Β 

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The retailer is the guy that is doing the fix and flip.

Another type of investment is fix and flip. Similar to how you are looking for properties as a wholesaler, you, as a fix and flipper would be looking for properties to invest in so that you can fix and flip.βš’οΈπŸ‘¨β€πŸ’ΌπŸ˜οΈ

Now you might find these properties from a wholesaler, you might find them from a bird-dogger, or you might be looking for properties like that yourself. It depends on how many you want.

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I recommend working with somebody else to do the entire front-end work so you can scale really fast.Β 

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The other types of investment that you’d be looking for are a buy and hold.

These are simple properties that you are going to purchase, that you are going to hold on for the long-term and rent them out. The idea is the cost of maintaining that property, all your taxes, your mortgage payments, etc are going to be less than the amount of rent you are going to make.πŸ˜οΈβ³πŸ’²

You need to make cash flow on those investment properties.Β 

So those are the different ways that you want to invest in real estate. And those are also the different ways in which you can make money investing in real estate.Β 

As I said, investing doesn't necessarily mean investing your money. It means investing your time and or your money, and even when you are buying properties to hold long-term, whether it's single-family homes, whether it's multi-family homes, whether it's apartment buildings.πŸ•πŸ’²πŸ˜οΈ

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You could even bring in a money partner to help you purchase those properties.Β 

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Meaning you are going to have somebody else involved so that you can buy many properties.

You are not always looking for ways in which you can raise money for a down payment. You could bring in a third-party joint venture partner, which is often called a money partner.πŸ‘¨β€πŸ’ΌπŸ’²πŸ˜οΈ

Episode #109 - How To Finalize A Deal Analysis

Episode #109 - How To Finalize A Deal Analysis

September 23, 2020

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When looking at real estate investment, you want to make sure you finalize your analysis. You want to make sure that you've done a proper financial analysis. And a lot of people, they tend to do that at a very cursory level. I never really do a detailed analysis and that is fine when you are starting out and you just want to start putting in high-level offers. πŸ’²πŸ˜οΈπŸ“‘πŸ‘¨β€πŸ’Ό

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One of the things you need to do as part of your due diligence is a financial analysis. What that means is getting all the numbers from the owner and figuring out if that property makes sense for you. That includes a number of things, depending on what type of property you are looking for.πŸ’²πŸ“‘πŸ˜οΈ

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If you are looking for just a property that you are just going to acquire and flip, the financial analysis is going to be pretty easy.

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All you need to know is some basic things like what are the property taxes, what is the insurance cost, what are the renovation costs?

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What that means is that you have to look at the property to figure out what the current situation of the property is, and what you can purchase this property for. πŸ‘€πŸ˜οΈπŸ’°

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You would also need to do a market assessment to figure out what the after repair value is going to be for that property in that market. That is a pretty simple financial analysis for somebody that is going to do a fix and flip, which is ultimately the kind of analysis you would be doing whether you are a bird dog or you're a wholesaler, or you're a fix and flipper.πŸ“ŠπŸ˜οΈπŸ‘¨β€πŸ’Ό

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The other analysis is if there's a rental property. In that case, you've got to look at all the expenses that you're going to incur as part of owning that property and the types of rents you are going to get as part of renting out that property for that area.πŸ“‘πŸ˜οΈπŸ‘€πŸ’°

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Don’t move forward until you do that final step, which is doing a full-blown financial analysis for the property for the type of investment you are going to do.

Episode #108 - Investing Is The Step That β€œMakes” You An Investor

Episode #108 - Investing Is The Step That β€œMakes” You An Investor

September 22, 2020

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There are several phases when looking to do a real estate transaction. The first few phases are where you are looking for properties, you are analyzing properties, you are searching for, and you put together a business plan. You have all these preliminary steps. What you do next is to invest, where you perform a transaction. There are many ways to do that.πŸ˜οΈπŸ’°πŸ“πŸ’²

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You can make private transactions where you yourself can make an offer directly to the person

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There are forms out there where you can do this, fill in the form and you can make an offer yourself, or you can get a lawyer involved where the lawyer will create the offer for you.πŸ“πŸ‘©β€βš–οΈ

You can also get a realtor involved to be able to issue an offer especially if it’s a listed property on MLS you are going to need a realtor because once it’s in the listing MLS domain you have to use a realtor to conduct that transaction. When searching for properties the next step is to invest. πŸ‘¨β€πŸ’ΌπŸ˜οΈπŸ’²

To make that offer means you now come to a point where you are done your analysis and you think that property is going to fit into your portfolio, whichever is it... whether its fix and flip, whether rent to own, or whether it's wholesaling … it fits all the criteria that you have.

You looked at the financials at high levels and you put in the offer. So this is what you want to do prior to investing. Without offers you are never going to get a property without offers, you are never going to get a deal.πŸ’²πŸ˜οΈπŸ“ŠπŸ€

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People say, I spent all this time analyzing and you know, I've never gotten any deals, never put any offers. Well, if you don't put any offers, you're not going to get a deal.

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The other thing you are going to get with offers is you are going to get feedback and you are going to build up your network.

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So usually these offers are to people that are listing a lot of properties for other people. Usually, it's with realtors; maybe it's a private deal. Maybe it's an online tool that you're looking at or an online database or online offering.πŸ€πŸ“‹πŸ˜οΈπŸ–₯️

Episode #107 - What Is Seller Financing And How To Use It

Episode #107 - What Is Seller Financing And How To Use It

September 18, 2020

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One of the ways you can finance a real estate transaction is using what is called using seller financing.πŸ’°πŸ˜οΈ

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I call seller financing any time a seller is actually providing you a mortgage as part of it's a transaction.Β 

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For example, when a seller is trying to sell a property and they have not been able to sell it, they may be very motivated to hold a mortgage on this transaction. That’s normally known as a vendor take-back mortgage. πŸ‘¨β€πŸ’ΌπŸ˜οΈ

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Another example is, let's say there is a property out there and it's worth 300,000. And you’d like to buy that property, however, you don't have the money, or you don't have all the funds. And maybe the bank doesn't want to lend you all the money. πŸ˜οΈπŸ’°

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You then approach the vendor, the owner, or the seller about taking back a second mortgage.

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What that means is as part of that sale of the $300,000 that maybe they have enough equity. So maybe they have $100,000 equity in there. And they say, okay, I'll hold the mortgage for $100,000.

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The reason why seller financing is advantageous to you is that usually, the terms of that mortgage are a lot better than what you would get at a bank or a private lender.

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Because the seller is motivated you can usually negotiate with the seller for very low rates of interest.

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Let's say, for example, the sellers are willing to hold a mortgage for $100,000. You could say, okay, I want that at 0% interest for five years, I have done that before when I purchased the property and I have asked the seller to hold back a second mortgage for 0% over five years.πŸ’²πŸ˜οΈβ³

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I also used to be able to get that seller as a second mortgage holder so that I wouldn't have to put any down payment.

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Nowadays banks actually want you to have some money as part of the down payment.Β 

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So that is another scenario that you would have to look at when trying to get financing. Usually, a mortgage broker can help you do that. πŸ˜οΈπŸ‘¨β€πŸ’Ό

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The other thing which is really interesting is if the seller owns the property outright which means they own 100% of the property. So if they don't have a loan they may be willing to finance the entire loan for you. Maybe they are an investor and they bought the property 20 years ago. The property now has no mortgage on it.πŸ‘¨β€πŸ’ΌπŸ˜οΈβ³πŸ’²

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What they can do is sell you that property for $300,000 and they hold back the entire value of the mortgage for you. In that case, they are probably going to want better terms. They probably want a good rate of return. Sometimes they can get a better return than they can get instead of investing in another type of investment. πŸ’°πŸ“ˆπŸ‘

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The advantage for you is you don't have to usually qualify for the mortgage. Now you would have to do some kind of qualifying.Β 

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The owner will want to look at your credit score but they may not be as stringent as going to a bank.

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How many more properties you have is also usually not a concern.Β 

So, private or seller financing is when the seller will finance a portion of the transaction or all of the transaction so that you can actually purchase the property from them.πŸ‘¨β€πŸ’ΌπŸ˜οΈπŸ’²

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