Watch the Apartment Investing webinar replay
July 24th, 2009
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Watch the replay now at http://bit.ly/VpQv5
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Archive for July, 2009
Did You Know That You Can Invest in Apartment Buildings?
July 23rd, 2009
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Is the competition among real estate investors getting intense in your city? Do you wish there was a way to reduce the competition, and increase the profits per deal?
There is a way. I’ve found America’s foremost expert on multi-family real estate investing, without dealing with tenants. His name is David Lindahl.
Up until now, the problem has been that everyone wanted the profits that apartment buildings could create, but nobody wanted to deal with tenants.
Dave Lindahl has “cracked the code” on getting apartment-sized profits, without the tenant headaches. David currently owns over 7,020 units around these United States, and he hasn’t spoken to a tenant in over 6 years!
Dave is going to be my special guest on Thursday July 23rd for a special, invitation-only teleseminar. He has agreed to share with us the secrets that have made him wealthy, starting from scratch. Secrets like:
• How to buy apartments with no money down;
• How to afford property managers, even for small properties;
• How to profit in the current “Mortgage Meltdown Era”;
• What’s the truth about tough neighborhoods, and dealing with tenants that do drugs or belong to gangs;
• The 4 Market Cycles: Learn how to easily know what stage of the market cycle you’re in at any time, in any area, for any type of real estate.
In every city in America there are apartment buildings. That wouldn’t be the case if all those owners were losing their shirts. While failed landlords like to whine in public, the rich apartment investors quietly count their cash. Dave Lindahl is going to reveal the other side of real estate investing…the hands-off, system-based, high cash flow side.
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Foreclosure expert saves 1 million families!
July 7th, 2009
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Jeff Kaller has personally negotiated over 400 short sale and preforeclosure properties. With partners, various business people, as well as his team of loss mitigators, Jeff has lost track of how many deals they have done together, but suffice to say, it’s a lot more. Too many to count.
In the last seven years alone, Jeff has trained well over 100,000 people in live seminars how to do short sales and preforeclosures. Probably tens of thousands more on the Internet. His training is considered by many to be top notch.
To date, Jeff has negotiated DOWN over $1 Billion dollars in debt with banks and lenders on behalf of the seller. That’s no easy feat.
Donald Trump, (who’s no slouch when it comes to research) stated unequivocally, even at one of Jeff’s live events, that Jeff is “the best in the business” at what Jeff does. Ron LeGrand, the granddaddy teacher of the real estate investing business, says the same.
Jeff is grateful for their endorsements. Register Now!
To date, through his student’s efforts and his own, over 1 million families have been saved from the indignities of foreclosure. Given our current economy, with your help, Jeff’s goal, his mission, his crusade is to save 1 million families more from foreclosure this year.
With your help, as well as others like you, he believes it can be done.
Jeff has the financial wherewithal to get deals done. He has up to a $20,000,000 short term warehouse line of credit for deals he is personally involved in.
The bottomline you should get from this is he walks his talk. Jeff and his wife Sofia, as well as the rest of the his team work this business every day… and they love it.
It’s very rewarding… financially, as well as emotionally… they get to help families facing foreclosure–that juices them, especially right now when the country needs us most.
Please join Jeff in his crusade to save 1 million families from foreclosure
Register now for the Turn These Economic Times To Your Advantage webinar series to see Jeff on Thursday night!
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Categories: News and Events
How Much Should I Offer For That House?
July 6th, 2009
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The fact is that you make your money when you buy (you realize that money when you sell). If you buy it for too much, then you will lose money – it is a simple as that.
So what is the right price? For rehabbing, there are several formulas out there – I like the following:
Max Offer = ARV – Repair cost – Holding Cost – Buy/Sell Costs – Desired Profit
This can also be expressed as
Max Offer = ARV x Z% – Repairs
But I would only use this short version when I am very comfortable with how long my rehabs take and the amount of time my end product is on the market. The difference between 100% and Z% accounts for the Holding Cost, Buy/Sell Costs and the Desired Profit, so you need to be very comfortable with the estimates of these Costs before you can use this as a percentage.
After Repair Value (ARV) is your expectation of the amount for which you will be able to sell your end product in a ‘short’ time. For single family houses, this is usually found by finding comparable properties nearby that sold recently and estimating your end product value based on this information. Remember that your end product needs to be either ‘a better product for the same price’ or ‘a similar product for less’ in order to get sold quickly. In general, I would like to see the 5 closest comparable houses (up to 1 mile away) that sold within the last 6 months. I look at the features of these houses to price my end product house.
Repair Cost is an estimate of how much it will cost to change the condition of the house today to become the desired end product house. Will you upgrade the property to low end, moderate, or luxury condition? Are you just going to clean up the property, or are you going to gut it and start over (or somewhere in between). What does it take to get permits or zoning changes in your area? Who will be doing the work? All of these decisions need to be answered to come up with a good estimate of the repair costs.
Holding Cost is an estimate of how much it will cost you during the entire time you own the house. I usually calculate my monthly cost and multiply it by the number of months I expect to own the house. This includes payments on mortgage(s), utilities, insurance, property taxes, etc. The number of months is determined by the scope of the repair work and how that work is being accomplished (are you swinging the hammer or contracting the work?)
Buy / Sell Cost is the amount that you will spend for all of the process of buying and selling the property. When you buy, this includes the escrow fee, the loan origination or points for your loan, inspection fees, title insurance or fees, taxes, etc. When you sell, many of these same fees may apply plus you may need to pay commissions.
Desired Profit is what you would like to earn from this flip. You need to decide this number and then compare the actual profit after completion – that is the only way to improve your flipping business. A couple things to consider when you determine this number:
- Is the yield on your money better than other investment opportunities? For example, earning 10K on a 200K cash investment in 9 months is the equivalent of 6.7% interest. Could I invest my 200K someplace else with less risk and make as much? Do you want to establish a minimum yield?
- Do you want to establish an absolute minimum that you want to earn per deal? Will this set a boundary on the type / location of your desired house?
Max Offer is the resulting number. This is the maximum value that you can pay and still make your desired profit. If you pay more, you will make less!
This is, of course, a cash offer on the property. If you got good terms, you could pay more if your exit strategy gave you additional profit because of these terms. For example, if I can get seller financing for 2% less than any of my other sources, then my holding costs will be less. I may then be able to sell the end product with seller financing and make some extra profit on the interest spread (if I charge 8% to my buyer and the seller charged me 4%, then I make 4% each month of payments). In this example, I could afford to pay more for the house originally and still make my Desired Profit.
Also, this is a formula for rehabbing. If your goal for the property is a long term hold, then you need to look more to the long term Return On Investment (ROI). But that is a subject for a different post.
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Did you miss the first session?
July 3rd, 2009
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…it is not too late to get caught up. Quick, while
the replay is still up, click through the link below to
register your seat for the ‘Turn These Economic Times
To Your Advantage’ series.
Once you are registered, follow the instructions to
watch the replay of Thursday nights session. Get caught
up now before it is too late!
The economy today is so different than it was 2 years
ago. You can’t use the same strategies to make good
money today. Lending is harder to get, buyers are
skittish, sellers are bombarded. You need to learn the
strategies that are working today.
The experts in this series are successful in today’s
economy. They have discovered the strategies that are
working. They want to share these strategies with you!
Now you need to do your part – register, catch up, and
participate in the rest of the series!
Tony Youngs was great last night!
Here are some of my notes from his presentation:
- Tony revealed 7 ways to profit from properties that are in foreclosure
- Tony talked about the ‘Ghost Inventory’ – the properties that the banks have gotten back from foreclosures but have not yet listed. There are over 700,000 properties in this ‘Ghost Inventory’. The banks are afraid to list them all because the resultant glut on the market would drive all prices down dramatically. Tony talked about how to find these properties and how to buy them
- Tony talked about the ‘Hidden Market’ – those properties that are not listed and nobody knows they are for sale. Again, he revealed how to find these and how to buy them
- He also talked about what to do with the properties once you have bought them. He gave options for when you don’t have the money to close, when you want to own for a short time and also when you want to hold long term but maximize your investment.
The replay will only be available for a few days. Go NOW!
