40k Flips

Module 6: Mindmap Conversion to Word Document

6TH COACHING CALL

  • Learn the $40k flips system and a daily plan to execute
  • foundation for success
  • Josh
  • Mark
  • set the ground rules
  • LIVE coaching
  • all email into the google group
  • so everyone has the benefit of the question and the answer
  • only constructive feedback allowed
  • no bitching just to bitch
  • SUPPORT QUESTIONS
  • access to the members site
  • user name
  • password
  • register for the coaching calls
  • link
  • problem Credit cards / billing
  • show them the members site
  • submit your deals
  • coaching application
  • coaching calls
  • register for all calls
  • cover the schedule of calls
  • every tuesday and thursday
  • %5 to pan can
  • thanks for donation and support
  • June 1st 5k walk run
  • $44,000
  • SEARCH
  • Daily
  • Weekly
  • Evenings
  • Sources
  • MLS
  • Short Sales
  • 3332 marmore Drive
  • 13901 Pawnee
  • 21688 Briar Bush
  • Outside Negotiator
  • Tammy Gordon
  • Columbus Ohio
  • Charges 1.5% of PP or $1500 whichever is greater
  • ALL SHORT SALES WITH DOM OF AT LEAST 180 days
  • 100k - 250k
  • DOM 180 days +
  • motivation
  • seller
  • avoid foreclosure
  • realtor
  • wants to get paid
  • advantage
  • will to wait
  • flexible and willing to wait
  • Wholesalers / Bird Dogs
  • We buy houses signs
  • REAI Clubs Meetings
  • bandit signs
  • WHOLESALER!!
  • POST
  • GAZETTE
  • Buyer's Agents
  • Chippewa
  • Sherriff's Auction
  • See Cuyahoga County Sherriff's Site
  • googled "cuyahoga County Sherriff's Sales"
  • 5/28
  • going to bid on 21688 Briar Bush Strongsville
  • date range search
  • search by city
  • locate a property
  • look in the MLS
  • take the property address
  • research auditors site to get a person name
  • the owners name
  • Lexux nexis.com
  • skip tracing
  • have a real estate agent call the homeowner
  • most likely this is a short sale
  • deposits on auctions
  • 10% down
  • if i'm the winning bidder
  • HARD
  • 175,000
  • $17,500
  • formal closing
  • at a title company
  • title insurance
  • all the other liens are going to be wiped out
  • ww.realtor.com
  • on MLS
  • Fairpark Ave
  • $40,000 Profit
  • first look
  • first look
  • first look
  • 80k and under
  • pre-programmed searches
  • 30 cities
  • set up to get email updates
  • anything new every day
  • Features
  • zoom out
  • pictures let you zoom out
  • street
  • area
  • other homes for sale
  • fsbo.com
  • Craigslist
  • CMA
  • how to do a CMA
  • Current Market Analysis Chippewa.pdf
  • Current Market Analysis Colonials Only Chippewa.pdf
  • current market analysis
  • Rob Russell
  • Search and Offer System
  • Step 1
  • Set up your search
  • MLS with agent
  • MLS drip
  • Zillow on your own
  • Zillow Drip
  • websites
  • homesteps.com
  • FDMC
  • homepath.com
  • FNMA
  • hudhomestore.com
  • HUD
  • Criteria
  • MLS
  • 80k and under
  • Pre-programmed into MLS
  • Seth / Rob
  • price range
  • up to $80,000
  • cities
  • 20 - 30 cities
  • 900 + sq ft
  • 2-3+ bed
  • could have been a 3 bed
  • or convert a 2 bed into a 3 bed
  • 1 bath
  • Step 2
  • look at curb appeal
  • look at inside of house
  • Look at Pictures
  • NAR
  • 92% of home buyers
  • investors
  • retail
  • Step 3
  • Comps
  • whats been sold around it
  • Zillow not perfect
  • look at recent solds
  • look at values from solds in the area and compare to the subject property
  • Step 4
  • look at price history of the subject property
  • what did it sell for in the past
  • ZILLOW
  • MLS
  • transfer history
  • Listing history
  • DOM
  • Days On Market
  • TITLE CO
  • free
  • Ballash rd
  • Sold in 2000 for $137,000
  • Listed in 2010 for $169,900
  • short sale
  • pre-foreclosure
  • listing
  • most possible offer to cover the mortgages
  • Bought it for $52,000
  • Listed For Sale $79,900
  • CMA
  • Current market Analysis
  • 3 solds
  • 3 pendings
  • 3 actives
  • auditors
  • cuyahoga county
  • Step 5
  • Go look at it with Real Estate Agent
  • Take 1/2 day
  • Take 1 full day
  • Talk to the neighbors
  • Write down Comps that are for sale near your subject property
  • What are you looking for
  • Normal house
  • ranch
  • colonial
  • splits
  • middle class
  • $125,000 - $150,000
  • driveway
  • flow
  • living room
  • dining room
  • 3 bedrooms
  • kitchen
  • What does it need
  • roof
  • windows
  • siding
  • Rehab Price Guide.docx
  • Step 6
  • ARV
  • List it for
  • Subtract
  • 10%
  • 10%
  • Net proceeds
  • 40,000
  • minus repairs 30,000
  • max offfer price
  • 25%
  • initial offer price
  • EXAMPLE
  • cma.pdf
  • pa.pdf
  • col-cma.pdf
  • Chippewa ANALYSIS #1
  • List $179,900
  • Sell $161,910
  • Multiply x's 90%
  • Net $145,719
  • Multiply x's 90%
  • Profit $40,000
  • Improvements = $30,000
  • Max Offer Price $75,719
  • Initial offer price = $57,000
  • 25% of the max offer
  • Competitive situation can't low ball
  • Chippewa Rd ANALYSIS #2
  • ARV and List
  • $159,900
  • Sale price
  • $143,910
  • Net proceeds
  • $129,519
  • Profit
  • $40,000
  • Repairs
  • $30,000
  • Max Offer
  • $59,519
  • Actual Offer $64,500
  • Chippewa X's 2
  • List $400,000
  • Sell $360,000
  • Net $324,000
  • Profit $40,000
  • Improvements $50,000
  • $234,000 OFFER PRICE
  • 2450 SQ FT
  • $78
  • $191,800
  • Disqualifiers
  • Low ceilings
  • bad floors
  • foundation problems
  • built and facing a strange direction
  • homeowner additions and changes
  • functional obsceloscene
  • Writing Your Offers
  • Step 1
  • we use the standard CABOR P&S agreement
  • no fancy paperwork
  • no fancy addendums
  • We write our offer at about 25% below what our max purchase price will be
  • If you are in a competitive situation / area you need to "bring the wood" and write the highest possible offer from the start
  • our buyers agent gets 3% commission when we buy (and $600 when we sell)
  • TIP: PRESIGN P&S AGREEMENTS AND MAKE COPIES, then your agent can just fill in the PRICE and ROLL
  • Step 2
  • add contingencies
  • General Inspection Contingency
  • 7 days max
  • Financing Contingency
  • CASH OFFER with PRIVATE MORTGAGE
  • 14 days
  • Step 3
  • Add closing date
  • 14 days max
  • Banks NEVER close on time
  • Never
  • This becomes an "OUT" b/c if they agree to a date and then cant close on that date they are now "OUT OF CONTRACT" and you can walk away
  • and you'll get your earnest money back
  • Step 4
  • Paperwork
  • if often takes the lender 3-8 days to sign all FINAL P&S agreements and addendums once you agree to a price
  • They often want to change closing dates or title companies
  • UNTIL that paperwork is signed you are not "UNDER CONTRACT" you can walk away
  • you can say this: "well the bank is taking way to long and i found another house"
  • i want out
  • In the mean time you can be taking your contract thru it to double check your estimates
  • Step 5
  • BANK ADDENDUMS
  • "OUT"
  • If the bank tries to add more paperwork and addendums - which they almost always do - you can walk away and not agree or sign those addendums
  • Bid to Accept
  • REO's in MLS
  • 7-10 offers to Get 1
  • Short Sales
  • 4 to get 1
  • Earnest Money with Cash Offers
  • HUD
  • Up to $2,000
  • 1% of sales price
  • $500 on HUD homes Minimum
  • REO's
  • 25% of the time
  • 10% as earnest money
  • 75%
  • $1,000
  • use private money to put down bids on houses
  • 38 Edgewood Dr FINAL PURCHASE HUD 1 5.6.13.pdf
  • Earnest Money 001.jpg
  • Closing to Buy
  • Purchase and Sales Agreement
  • 4/12/13
  • closing date 5/20/13
  • closing moved up 5/17/13
  • Note
  • Equity Participation Note 1297 Steve Drive Akron Ohio 44319 1st mortgage Greg Jejba IRA 70k 5.13.2013 clean 2nd draft with notary FINAL.docx
  • Simple Note 1297 Steve Drive Akron Ohio 44319 Josh and tracey Tobias 12 percent 5.13.2013.docx
  • Mortgage
  • 1297 Steve Drive Akron Ohio 44319 1st Mortgage greg sejba IRA 5.13.13.docx
  • 1297 Steve Drive Akron Ohio Josh and Tracey Tobias 12 percent 5.13.2013 2nd mortgage.docx
  • final note and mortgage for tobias 2nd mortgage 1297 Steve Drive 5.15.13.pdf
  • iPlan Needs
  • they need Signed note and mortgage at least 4 days in advance
  • really they only need 2 days
  • Cover Letter for Iplan
  • Cover letter 5.20.13.pdf
  • Direct Letter for iplan group for purchase closing 5.15.13.docx
  • Direction of Investment Form from Iplan
  • They need to DOI
  • greg Sejba 1297 steve drive final note and mortgage signed.pdf
  • Need wiring instructions from Title Company
  • Wire Instructions Global - 64710.PDF
  • Emerald Glen Wiring Instructions.pdf
  • Need Escrow Letter from Real Estate Agents
  • Provided by realtors
  • 3% commission
  • Need to approved HUD 1 day prior
  • HUD Settlement Statement - 64710.PDF
  • Need to sign HUD 1
  • iPlan wires Money
  • NOTE: About half of the money I've raised is in IRA and Half in Non- retirement accts
  • IRA funding confirmation greg sejba.docx
  • Filing and Funding
  • deed is filed
  • everyone is paid
  • WE ARE RESPONSIBLE FOR RECORDING THE MORTGAGES
  • What Holds up Closing
  • almost always the seller
  • expect the banks to have a problem
  • worst case scenario
  • $1,000

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