Are Your Rehab Profits Sinking?

The reality for entrepreneurs is that to succeed, you must plunge into your work, “swim” until you get to the other side, and reemerge with enough fortitude left over for another dive. Sometimes a rehab project can feel like a leap of faith, especially when you’re jumping into new waters. I’m all for taking leaps of faith, as long as you learn from those who dove in before you. This way, you won’t resurface gasping for air, you’ll be thirsty for more.   Don’t trick yourself out of maximum rehab profits by making any of these ...

By |2020-01-31T03:14:57+00:00February 1st, 2017|Flipping, Uncategorized|

Leveraging the Same Amount of Capital in Multiple Properties

Leverage is king. Leverage also means that you're using other people's money to dramatically increase your rate of return by purchasing more properties with the same amount of money. With leverage, you can buy more properties. That's the long and short of it.  You can put a small amount of your capital into multiple properties instead of all of your capital into one or even a few. I can use all of my cash house, or I can use the same amount of cash to buy four houses and then finance the shortage that is need. ...

By |2020-01-31T03:21:32+00:00November 17th, 2016|Uncategorized|

What Is Owner Financing?

This is the most common way to get a hundred percent financing. This is where the current owner agrees to finance all or some of the purchase price. If it’s just some, you can get the remaining amount from Cogo Capital or another local private lender in your market. If you have the financial or credit wherewithal, you could also go as far as getting conventional financing. Common owner financing is where the principal will be paid at a later date, which is called a deferment. You can also defer the interest and stack all of ...

By |2020-01-31T03:24:11+00:00November 11th, 2016|Uncategorized|

Why Use Private Lenders Instead Of a Bank?

The difference between banks and private lenders are these. For regulation as it relates to banks, regulation is very high and as it relates to private lenders it’s low. I don’t have a crystal ball and I'm probably going to regret saying this, but I don’t an cipate or foresee much regula on in the private money mortgage market any me soon other than the licensing requirements which we’re already seeing. The reason for this is the Federal Government knows that with the mandates against banks through FDIC and all the other hoops they have to ...

By |2020-01-31T03:32:22+00:00October 13th, 2016|Uncategorized|

Wholesale Case Study

  I just want to walk you through a brief wholesale deal. Let's assume now that you've gone out and you've put a property under contract for $100,000 and then you've assigned it to another buyer for $105,000. Now when you go to closing, your end buyer will actually bring $105,000 - $100,000 for the purchase and $5,000 for the assignment fee. Now, what helps is if they bring two separate checks and this is up to the tle company's discretion because guys, I don't ever want you closing a deal without a title company being ...

By |2020-01-31T03:39:42+00:00July 26th, 2016|Uncategorized|

How do you price the wholesale deal?

  This is a great question because one of the things you do not want to do is demand so much money for the deal that nobody will buy it. You need to leave enough of what we call “meat on the bone” for the next person. They still need to be able to make a profit after they have invested me, renovation costs, and paid off their contractors. There needs to be enough room after all the closing fees, real estate commissions, title fees, and your wholesale fee for them to still make a profit. ...

By |2020-01-31T03:49:37+00:00July 8th, 2016|Uncategorized|

The Foreclosure Process: Judicial and Non-Judicial Foreclosure

  Why invest in the foreclosure scene? First of all, you get discounted pricing. It's also speedy purchases and there's often wonderful profit opportunities if purchased correctly. The main thing I love about investing in foreclosure properties at a trustee sale or sheriff's auction is that in most markets you buy today, you own today. That's pretty rapid money. In your own market, you need to make sure that you check to determine that if you buy today, you own today. In some markets there is a redemption period that the homeowner has. I've heard that ...

By |2020-01-31T04:01:42+00:00June 22nd, 2016|Uncategorized|

Structure The Deal

  Now that we have developed our investment criteria, the next thing we need to do is structure the deal. We first do this by formulating and delivering the offer. Then we negotiate with a seller, get the offer accepted, and then we determine the best exit strategy. What is your exit strategy? Could there be more than one? Maybe you want to wholesale this deal first and then fall back to a rehabbing/ retailing it as a plan B and even keep it as a rental for plan C. These are some of the key questions ...

By |2020-01-31T04:02:13+00:00June 21st, 2016|Uncategorized|