Empowering Strategic Investment
By Lorena Arnold
4/17/2014
WOMEN INVESTMENT
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Purpose
Empowering Strategic Investment
Networking
Coaching
Learning
Education
Investments
Support
Study Group
Discussion
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INVESTMENT
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Agenda
Upcoming events
Networking
Discussion
Book Review –
How to Invest in Foreclosures
By Peter Conti
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INVESTMENT
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CA$HFLOW Property Tour
Come and see
The Good, The Bad, and
The Ugly
Saturday, June 21, 2014
1:00 pm – 3:00 pm
RSVP: Meetup or Facebook
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INVESTMENT
GROUP
CA$HFLOW Game 101
It’s Time to Get out of the
Rat Race
Practice real world investing
with play money
Friday, April 25, 2014
7:00 pm – 9:00 pm
RSVP: Meetup or Facebook
WOMEN
INVESTMENT
GROUP
WOMEN
INVESTMENT
GROUP
Agenda
Upcoming events
Networking
Discussion
Book Review –
How to Invest in Foreclosures
By Peter Conti
WOMEN
INVESTMENT
GROUP
Networking
Your Name
What is your Real Estate
Business Name?
What do you do?
Do you have any Hot Deals?
Offers? Marketing Success?
What are you looking for?
WOMEN
INVESTMENT
GROUP
Agenda
Upcoming events
Networking
Discussion
Book Review –
How to Invest in Foreclosures
By Peter Conti
WOMEN
INVESTMENT
GROUP
Discussion
WOMEN
INVESTMENT
GROUP
Discussion
WOMEN
INVESTMENT
GROUP
Agenda
Upcoming events
Networking
Discussion
Book Review –
How to Invest in Foreclosures
By Peter Conti
WOMEN
INVESTMENT
GROUP
Flipping Properties
Generate instant Cash Profits
in Real Estate
By William Bronchick
1.
2.
3.
4.
5.
April – Chapter 1 – 5
The concept of Flipping
properties
The mechanics of real estate
transactions
Proven ways to find deals
Analyzing a Good Deal
The art of negotiating the Deal
WOMEN
INVESTMENT
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Introduction
Second edition Book was published in 2006
The speculator’s approach - expect to go on value
The “nothing-down” approach You can get a good price or a good term but usually not both.
Treat real estate like another BUSINESS
Generate working capital before you buy properties
A sound businessperson focuses first on getting cash flow, then on
growing the business
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Chapter 1 – The Concept of Flipping
1. A flipper buys property with the intent of quick
resale.
2. There are three types of flippers.
3. A flipper may act as a Dealer on some
transactions and a retailer on others.
4. Establish a network of other investors to buy
YOUR properties.
5. Use the MLS to sell your properties.
6. Learn how to make money in the changing
market.
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INVESTMENT
GROUP
Chapter 1 – The Concept of Flipping
The Scout
Bird dogging
Information gatherers
The Dealer
wholesaling
Find a bargain property and sign a
purchase contract with owner
The Retailer
Fix and Flips
Fix up the property and sell it to full retail
price to an owner occupant
Partners – always clarify roles and expectations in writing
Don’t enter into real estate transaction without knowing your Exit Strategy
Join an Investment Club
When you make an offer, include enough room for someone other that
You to make a profit
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Chapter 2 – The Mechanics of Real
Estate Transactions
1. Understand the basic mechanics of real estate
transactions
2. Use double closings and contract assignments
to flip properties
3. Be Aware of potential seasoning and flipping
issues.
WOMEN
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GROUP
Chapter 2 – The Mechanics of Real
Estate Transactions
The Deed
General
warranty Deed
1.
2.
3.
4.
5.
6.
7.
Written instrument used to convey ownership
Special
warranty Deed
In writing
Name of parties
Consideration
Legal description
Words of conveyance
Signatures
acknowledgment
Bargain and
Sale Deed
Quit Claim
Deed
The first person
to records the
document
wins….
WOMEN
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Chapter 2 – The Mechanics of Real
Estate Transactions
Assignments
Assign your right
under the contract
to another investor
for a fee
Will not work with
Bank owned
Other investor
KNOW what you
are getting
vs
Double closing
Can have bigger
profits
Needs to be done in
a title company
Other investor does
not know what you are
getting
WOMEN
INVESTMENT
GROUP
Chapter 3 – Proven Ways to find
Deals
1. Find a motivated seller and you find a bargain
property.
2. Learn how to farm neighborhoods
3. Employ multiple marketing approaches
4. Use your business car and contacts to get
referral business
5. Learn how to work the foreclosures business
WOMEN
INVESTMENT
GROUP
Chapter 3 – Proven Ways to find
Deals
Find distressed properties which in reality means finding distressed owners
It takes persistence and hard work
Dead
Divorce
Disease
Disaster
Brochure to agents!!!!
WOMEN
INVESTMENT
GROUP
WOMEN
INVESTMENT
GROUP
Chapter 3 – Proven Ways to find
Deals
Find distressed properties which in reality means finding distressed owners
It takes persistence and hard work
Dead
Divorce
Disease
Disaster
Brochure to agents!!!!
Properties for Rent
“I saw your ad in the paper for a property you are
renting. I am an investor. Are you interesting in
selling the property?”
The telephone can make you a lot of money
Agents versus Broker
WOMEN
INVESTMENT
GROUP
Chapter 3 – Proven Ways to find
Deals
Learn how to farm a neighborhood
D4D
Open House
Preforeclosures
Door Hangers
Direct Mail
Expires
Pick an neighborhood or two and
focus your marketing efforts within
that area.
Estates sales
Vacant
Magnetic card signs
Sometimes people call months after receiving your marketing. Try
mailing to the same people two or three times a year
Repetition - Keep sending the mail until request to be removed or marked
“deceased”, then find the estate and continue
WOMEN
INVESTMENT
GROUP
Chapter 3 – Proven Ways to find
Deals
Get referrals
Form a corporation for your business as soon as
possible
Learn the foreclosure procedures and time line
Foreclosure will face reality, and they will usually sell to the
first person who comes banging on their door
WOMEN
INVESTMENT
GROUP
Chapter 4 – Analyzing a Good Deal
1. Pick the right neighborhoods
2. Learn how to establish value
3. Find out what other investors are willing to pay
for properties and find deals that suite THEIR
needs.
WOMEN
INVESTMENT
GROUP
Chapter 4 – Analyzing a Good Deal
Be aware of local market trends, but do not be paralyzed by these trends
Flipping properties works in every market, in every city, whether the
market is hot or in the pits.
Choose an area close to where you live
Base your offer on what the house will sell for
after necessary repairs
Learn Value versus Appeal
A finished basement add some appeal, it may not
raise the value
WOMEN
INVESTMENT
GROUP
Chapter 4 – Analyzing a Good Deal
What is a Good Deal?
No one formula works in every neighborhood and in every market.
Start as a Scout, find out what the retailers are looking for and you
have a starting point
Make your offer with TWO investors in mind
Denver - buy properties at 80% of ARV
Know where your market currently is and where it is going
Finding really good deals is not easy – it takes a lot of work and a bit of
good luck
WOMEN
INVESTMENT
GROUP
Chapter 5 – The Art of Negotiating
the Deal
1. Only negotiate with motivated sellers.
2. Ask the right questions to determine the
seller’s level of motivation
3. Negotiate a discount in price and/or a “subject
to” deal.
4. Learn how to deal with real estate agents
WOMEN
INVESTMENT
GROUP
Chapter 5 – The Art of Negotiating
the Deal
Deal with people who NEED and WANT to sell quick
Find out what the seller wants
Learn how to ask the right question
Successful investors are problem solvers
Help homeowners solve their problems in an ethical way.
WOMEN
INVESTMENT
GROUP
Chapter 5 – The Art of Negotiating
the Deal
Dealing with Agents
Offer more earnest money when presenting an all-cash offer.
Highest and Best – more earnest money and a faster closing over a
higher priced offer
Always include means to pay the agent, even if you pay out of your
own pocket
Fax preliminary offer!!!!!!!!
WOMEN
INVESTMENT
GROUP
WOMEN
INVESTMENT
GROUP
Flipping Properties
Generate instant Cash Profits
in Real Estate
By William Bronchick
May – Chapter 6-10
6. Putting It in Writing
7. Finding The Money
8. The Closing Process
9. Rehab – The Big Bucks
10. Presenting your masterpiece
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