Hey everyone!  Jason Nedrow here with REI Success Mastery, where we teach you how to become a highly paid, professional real estate investor.  Now today we’re going to talk about your investing formula for wholesaling properties to buy and hold investors.  If you remember correctly we talked about three primary buyers you wholesale properties to.  You have your buy and hold investors, your fix and flip investors which are also your rehab investors, and then your retail buyers such as homeowners.

Now today, we’re going to focus on buy and hold investors.  Now their buying formula is quite a bit different than fix and flips investors or retail buyers.  It’s a little bit trickier but it’s not too bad once you get the hang of it.  Now buy and hold investors, their strategy is obviously to hold a property long term.  You know and they’re going to rent it out and so forth, so their more focused on return on investment.  Now you probably know how you figure return on an investment is you basically take the total invested in a deal.  You divide that into the net profit, the net gain on a deal, you got your return on your investment, So a buy and hold investor, how they look at it is total capital invested, they divide that into their net cash flow because that’s their net profit, and that’s how they get their return on their investment.

Now because of that, they have what’s called a cap rate formula that they use for figuring their buying price on a property and their total invested.  Let me show you what I’m talking about here.  Maybe you’ve heard of cap rate, maybe you haven’t, but how they figure this is total capital invested into a deal, divide that into the net operating income.  That’s how they end up with their cap rate.

Now if you haven’t hear of net operating income, how you figure that is you take the rent of a property, you subtract all the expenses such as insurance, property management, property taxes, all the expenses, except for the debt service.  That stays in there.  You subtract that from the rent, you’ve got a net operating income.  You’ve got to multiply it by 12 to get your annual net operating income.  Then you take that number and you come up here.  You divide total capital invested into it and that’s how they get their cap rate.

Now when a buy and hold investor comes to you , they’re already going to know what their cap rate is or what their desired cap rate is.  You are going to figure out the net operating income on a property, so the only unknown in this equation is going to be the total capital investment, generally speaking.  So you are going to have to reverse engineer this formula just a little bit to figure out their investment and their buy price and how are you going to do that is you’ll take the net operating income that you figured out, take the cap rate that they’re desiring, divide the cap rate into the net operating income, and that’ll give you the total capital invested.  Now I’ve got an example here to help illustrate my point so let’s talk about that.

So again, let’s take our buy and hold investor, let’s say the desired cap rate is 12%.  You find a deal and let’s say the rent on this property is $1,100 and the expenses is $335, again, everything except for the debt service.  And we end up $765 net operating income.  We’re going to multiply that by 12 so we get an annual net operating income, which ends up $9180 in this example.  We bring that over here, and again we reverse engineered our cap rate formula, so we take that desired cap rate, divide that into $9180 and now we have their total capital invested in a deal.  Now let’s say in this example, the repairs are $18,000.  You’re going to take that $18,000, subtract it from, again, the total capital invested, and that shows you their buy price as a buy and hold investor.

Now we still have to figure your wholesale profit on a deal, so we’re going to take their buy price, subtract your profit, let’s just say it’s $10,000, and that’s going to show you your buy price as a wholesale investor.

Now you’ve got to keep in mind, when you’re looking at a property, you’re doing an analysis, and you’re running your numbers, it’s all about the numbers.  You never get emotional about a deal.  If the numbers make sense, you do it, if they don’t, you move on.

Now if you can adjust the numbers just a little bit to make it work, that’s okay, but again, don’t push your numbers too much because that’s how you end up in trouble.  There are only a few places on here that you can really make some adjustments.  For example, you can always adjust your profit if you’re desperate or hungry enough, I mean heck.  You could make 5 grand instead of 10 grand if that’s what it takes to make the deal work, that’s up to you.  Same thing with the buy and hold investor, if he’s willing to adjust his cap rate a little bit, if he’s a little bit flexible, that’s obviously going to make a difference in the formula.

But really, again, you don’t have a whole lot of room other than that.  Repairs, you might be able to make a little bit of an adjustment there, depending on the contractors you’re going through.  Again, rent and expenses, that’s fixed so you really can’t do anything there.  I just encourage you, don’t push your numbers too much, and try to keep yourself just a little bit of wiggle room, just in case.  But that’s how it’s going to look if you’re looking at cap rate.

Now cap rate is generally what buy and hold investors focus on if they’re more, higher end rentals like multi-family investors, they talk a lot about cap rate, duplexes, four-plexes, more your high end rental investor’s focus on cap rate.

Now there is a second formula that we’re going to talk about here.  And let me show that to you real quick so you know what we’re talking about.  Now some of your buy and hold investors, they will focus more on a specific buy price formula.  Now if that’s the case, it’s a whole lot easier for them.  Let me show you what I’m talking about.  So let’s just say, again, all they care about is the buy price, that’s all they’re focusing on, this is a formula that you’re going to use.  You basically take their total desired that they want to go into a deal, they’re going to know, these types of investors, they know what type of areas they want to invest it so and they’re going to have a pretty good idea what their cap rate is going to be so, their rents, their expenses so, they’re going to have a pretty good idea about all that stuff.  So really, you’re just going to ask them, what is the most they want to go into a deal.  Now let’s just say in this example, this investor, the most he wants to go into a deal is $75,000.  He knows the area, that’s the most he can get away with.  Let’s say he finds a deal, and there’s $15,000 in repairs.  You subtract the $15,000, and right there you have buy price as a buy and hold investor.  Pretty simple huh?  Again you take your profit on the deal, you subtract that and now you have your buy price as a wholesale investor, a whole lot easier formula.

And again, just like I said before, you can adjust this just a little bit if you need to.  Again, just don’t push it too much.  But again, much nicer formula and this, you know most of your buy and hold investors that deal with your low end rentals, low end neighborhoods and so forth.  They’re more focused on a specific buy price.  That’s when you see a lot more of this.

Now a couple things to keep in mind as you’re looking at this.  You know first of all you’ve got to be flexible as a wholesale real estate investor.  In other words, you’ve got to get familiar with cap rate, and a specific buy price so that way you can work with both types of investors.  Keep that in mind, and also when you meet a new, a potential buyer, and you’re thinking about adding them to your buyers list, obviously you are going to ask them a series of questions, you want to get familiar with them and the more you get to know them, the easier it’s going to be for you and for them as well, so ask them questions like for example, you know, what locations do they want to invest in?  Specific neighborhoods?  What type of properties?  Duplexes, four-plexes, single families, size of the property, you know, as many specifics as you can get.

I mean some buy and hold investors don’t even want to focus on repairs.  They just want to buy a property that they can put renters in and that’s it.  They don’t want to do repairs.  So you’ve got to ask them those types of questions.  And when it’s all said and done, you got to make sure that their criteria for buying the property matches your criteria for wholesaling because if it doesn’t match up, it’s not going to work out.

You know, for example, maybe, you don’t want to work with buy and hold investors that want a property that’s ready to go.  You got to be willing to have investors that are willing to do some repairs so, keep that in mind.  Another question to ask them is what is their formula for buying properties?  That’s a big one obviously, and I’ll give you a little tip here.  See what ever questions you ask them, you’re more likely to lead them down that path.  And you definitely want to lead them down a certain path so for example, if you really don’t want to focus on cap rate, don’t ask them what their cap rate is because otherwise you’re more likely to have them give you a cap rate formula and so forth and that’s going to make it a little bit more complicated for you.

So what I encourage you to do is ask them, what is the most that you want to go into a deal?  You know, so ask them again.  Location, are they willing to do repairs on the property, what types of homes and stuff, and then ask them, what’s the most that you want to go into a deal?  See if you ask them that type of question, you’re more likely to get an investor who’s more willing to focus on a specific buy price formula versus a cap rate formula.  It’s going to make a whole lot easier for you.  So just, again, keep that in mind.

So that’s your investing formula for wholesaling properties, to buy and hold investors and again, if you want to see the investing formula for fix and flip investors or retail buyers, just go to our website, you can watch those videos there, or you can go to YouTube and subscribe to our channel but definitely go to our website because we’ve got a ton of great information, some really powerful strategies to help make a lot of money in today’s market, and I’ll tell you, we’ve got a guy on our team that made over $50,000 his first month doing exactly what I’m showing you right here.  Part-time!  As a brand new investor and if you’d like to see how he did it, go to our website, we’ve got a free video; we can see exactly how he did it.  Again, lot of great stuff for you, if you’re serious about making money in real estate, we can definitely help you make a lot of money right now.  Now as always, dream big dreams, and go to work.  See you next time.

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“rental properties” landlords “investing formula” “formula for investing” “real estate investors” “buy and hold investors” ARV “wholesaling properties” “investment properties” “investing in real estate” “exit strategies”

Hey everybody!  Jason Nedrow here with REI Success Mastery where we teach you how to become a highly paid, professional real estate investor.  Now today I want to talk about your wholesaling formula for wholesaling properties to fix and flip investors.

Now if you remember correctly, we talked about the three primary buyers that you’re wholesaling properties to.  The first one is fix and flip investors or rehab investors, they’re kind of one in the same.  The second one is buy and hold investors and the third one is retail buyers or home owners.

Now fix and flip investors and buy and hold investors you definitely want to build strong relationships with these individuals and the reason is, they are repeat customers.  If you take good care of them and they’re making a lot of money doing business with you, they’re going to come back and do a lot more business with you.  which means you’re going to make a lot more money.  So take care of your people.  They’ll buy multiple deals from you on a yearly basis, or even a monthly basis.  Repeat customers are good.

Now homeowners, you definitely want to take care of them too, but the thing is, they’re not as likely to be repeat customers.  It does happen but not as likely.

So today, we’re going to focus on fix and flip investors.  Now they have a different buying formula for acquiring properties than buy and hold investors do.  Now most fix and flip investors, their buying formula goes like this.  It’s ARV which is after repair value, multiplied by 65% minus repairs.  That equals their purchase, that’s what they’re looking to purchase the property for.

Now as the ARV increases, the 65% can also increase.  You know you can bump that up to maybe 70%, but this right here is pretty much a standard rule that you want to go by.  Now the other 35% in the deal, that basically takes care of the profit for the fix and flip investor and also takes care of their expenses, such as realtor fees, closing costs, peroration of taxes.  They probably had to borrow the money from a hard money lender, or some private investor, so they have some costs associated there.  So they’re looking again, to have a profit spread of about 35% before any expenses.

Now this is their buying formula, this is not your buying formula.  Again, keep in mind, you still got to make a profit on the deal, and how you figure in your profit is simply take what you’re looking to make from the deal and subtract it from their purchase.

So let’s say you’re making you want to make ten grand on the deal.  You’re going to go ahead and subtract $10,000 from their purchase and that’s going to equal your purchase as a wholesaler.  Pretty simple.  Now let’s take a look at an actual example to help kind of bring this home and make sure you understand this.

Let’s say you find a property that has an ARV of $150,000.  We’re going to multiply that by 65% and let’s say there’s about $25,000 worth of repairs on the deal.  So go ahead and subtract $25,000 that’s going to equal again, their purchase as a fix and flip investor.  In this example it’s going to be $72,500.  Now again, let’s say you’re looking to make $10,000 on the deal.  So you’re going to go ahead and subtract your $10,000 profit for the deal and that’s going to equal your purchase as a wholesaler which is $62,500.  So you want to purchase it here so again, you can make about $10,000 so after all said and done, the fix and flip investor can purchase it here.  They do the repairs, they still got about 35% profit margin there.  That’s how it works.

Now, again, this is how most fix and flip investors figure their formula for acquiring properties.  However there are some fix and flip investors that don’t have this formula.  Or they don’t have a formula at all.

So what you want to do as you meet these investors, you start building relationships, the first thing you should do is obviously ask them a series of questions.  Ask them if they do have a formula for acquiring properties, ask them what it is, it may be a little bit more different than this, but again this is a pretty standard rule, but find out what it is.  Again their profit margin may be a little bit different.  Also find out what type of properties they’re looking to acquire, what areas their trying to acquire those properties.  Find out as much as you possibly can about them, because, the more you learn about your investors, your purchasers, the easier it’s going to be for you to go out there and do what you need to do and make money.

Once again, one of the really important keys to making a fortune in this business is take good care of your buyers.  I can’t impress that on you enough.  If they’re making a lot of money by doing business with you, and the easier it is to do business with you, the more they’re going to keep coming back, and again, the more of these repeat buyers you have, all around your area, all these investors, again the more money you’re going to make, and it’s going to be a whole lot easier for you.  So that’s your investing formula for whole-selling properties to fix and flip investors.

Now again, we’re going to talk about buy and hold investors in another video but hopefully you found this information helpful.  If you did, please go to our website at the bottom of this video, we’ve got a ton of information, a lot of great content and it’s free.  We got some really powerful tips and strategies to help you make a ton of money in real estate and if you’re serious about making money in real estate, especially making money right now, definitely go to our website because we got some training there that will absolutely blow your mind.  We’ve got a gentlemen on our team that made over $50,000 his first month wholesaling properties.  Just part-time!  If he can do it, you can do it too.

Also go to YouTube and check us out there, and make sure you subscribe to our channel so you can get more free videos as we continue to roll out more great information down the road.  Other than that, as always, dream big dreams and go to work.  See you next time.

TAGS:

investing formula, formula for investing, real estate investors, rehab investors, fix and flip investors, ARV, wholesaling properties, investment properties, investing in real estate, exit strategies

Hey everyone.  Jason Nedrow here with REI Success Mastery where we teach you how to become a highly paid, professional real estate investor.  Now today we’re going to cover a 13 point checklist that homeowners and real estate investors should use when evaluating and purchasing a property.  Now this checklist will work for you if you’re buying a property for your own personal residence or if you’re a real estate investor and it’s strictly for investment purposes, either way it will work.

Now if this is your first video, this is a two part video series and you’re going to want to pause this and go to youtube or our website and watch part one first and that way it’s going to make a whole lot more sense to you.  You can get our web address below this video or tail end of this video but please, watch the first video and then come back and watch this one, it’ll make more sense to you.  Also keep in mind that there is so much content and information that this video series, part one and two covers the exterior checklist of a property.  We have a whole other video series that covers the interior checklist, so keep that in mind.

Now for those of you who have already seen part one, hey, welcome back, and let’s get to it.  So like I said before, keep in mind, minor overlook can lead to a major expense.  That’s why each one of these points on this checklist is just as important as the other, so keep that in mind.

Now number 7 on our checklist is the garage or car port.  Listen, now days, this can be a deal breaker for a lot of people.  Most people want to have a garage.  People spend a ton of money on their cars, they want to protect that investment, they want to have a place to park their car, and there is no garage or if the garage is too small, then they can’t park their car that could be an issue.  So if you’re trying to flip the property, you may have a challenge there.  A rental property, it may not be as big a deal and that’s why you always want to take into consideration, your exit strategy.  I mean, if you’re going to rent the property versus live in it, or try to flip it, some of these factors may not be as big a deal, and you might not spend as much money as you would otherwise, but I will tell you if you’re renting the property, if it’s got a car port or garage you’ll probably rent a lot quicker and easier that way.  That’s something I want you to take into consideration.

Number eight, sprinkler system.  Now I will tell you this isn’t as much really as a deal breaker as other factors, it really most of the time isn’t a deal breaker.  But most homes do have a sprinkler system, that why you want to add it to our checklist, and most people want a sprinkling system, and your property will sell quicker if it does have one.  Now again, rental properties, you may not think its big deal but I prefer to have a sprinkling system in my rental properties because I know my tenants are more likely to take care of the land and landscaping and that’ll save you a lot of money down the road, and a lot of hassle.  Once again, take a look, does it have a sprinkling system, does it need one, is that something you want to invest in and put one it, I mean that’s up to you and it depends on your strategy.  If you’ve got one, does it work properly, again, take a look at that because that may or may not be a big deal to you.

Number nine, window wells.  This is something that I see people overlook all the time.  I remember the first property I bought years ago, I didn’t pay attention to the window wells and they weren’t dug deep enough and what happened, the first major rain storm, all my window wells filled up, my basement flooded, and it cost me a ton of money in carpeting and it was just a huge headache.  Don’t let that happen to you.  Unfortunately, some builders out there don’t care about their reputation, I mean some states, don’t even require builders to have a license unfortunately, and so you get these builders that just build homes as fast as they can, they don’t care about the quality, and when it comes to window wells, sometimes they don’t dig the window wells as deeply as they should.  And what they do is they just fill them up with dirt and is not what you want.  If the window well has got dirt, that is a problem.  You want to make sure it’s got the proper fill, rocks in the bottom so it actually drains, that’s what window wells are designed to do.  So again, if it has dirt, a rain storm or in the spring time after all the snow melts, your window wells are going to fill up, it’s going to flood your basement, and again, a minor thing that’s going to cause a major expense for that, so pay attention to that and that will help you down the road.

Number 10, rain gutters.  Again this is another thing that people overlook so take a look at the rain gutters, does it have rain gutters, if it does, what kind of condition are they in?  Are they sagging?  Do they need to be repaired or are they bad enough they just need to be replaced?  You know, because again, all these factors we’re talking about here is going to make a big difference in your rehab costs and your purchase price.  Something else about your rain gutters too, is where do they drain?  Now that may sound kind or ridiculous but you know, if your rain gutter drains right next to your window well, again, a major rain storm, it’s going to fill up your basement.  That sounds ridiculous but there are builders out there that don’t pay attention to that, they just build homes and that does happen, I’ve seen that.  Also, again, my first property, again, I was novice, I didn’t know what I was doing.  The rain gutter actually drained out right there on the front sidewalk, right there by the front step going right into the front door.  Well again, that may not seem like a big deal in the summer time it wasn’t, in the winter time though, if we had a warm day, some of the snow would melt and run down the sidewalk and in the evening it would get cold and freeze and it would create a perfect sheet of ice.  I can’t tell you how many people would slip and fall going up the front step, now again, you don’t want that.  If you’re fix and flipping a property and you’re trying to show it in the winter time, that could really cost you a sale if someone slips on that ice.  Now on a rental property, you may not think that’s a big deal, I will tell you this, and I’m not trying to scare you, but we live in a very litigious society.  If one of your tenants walks into your property during the winter time and you got a rain gutter right there that’s over the sidewalk and doing the same thing.  If they slip and fall, they may find you liable, and try to blame you and try to sue you.  I’m not trying to scare you, these minor things, pay attention to, it can save you so much time and headache down the road.

Alright, the driveway and the sidewalks.  That is something else.  People are so focused on the home they don’t pay much attention to the driveway and the sidewalks.  Obviously over age, they crack and so forth but if so old you got a lot of cracking or part of the driveway is starting to sink, or tip a little bit, you know, you could have some problems.  You may want to consider patching it.  You know there are companies or remedies that can actually patch it up and it’s just fine but if it’s bad enough, you may want to replace the whole thing and that could be a major expense.  Now, one of my buddies bought a property and the driveway was sagging a little bit, and it didn’t seem like a big deal but we dug down and come to find out, part of the driveway was completely eroded underneath, there was no foundation underneath it and it was about ready to cave in so again, pay attention to those thing because it could make a big difference.  You know if you figured so much into your purchase price and after words you got a $5,000 expense you didn’t consider, that eats up a ton of your profit and makes a big deal.

Okay, number 12, porches and patios.  Does it have porches and patios?  If it does, what kind of condition are they in?  Do they need to be painted?  Something of that nature, does any repairs need to be done there?

Now our 13 point on our checklist is any additional structures on the property.  Now we’re talking about fences, sheds, barns, shops, swimming pools, now most real estate investors are not acquiring properties that have swimming pools, or sheds or barns or shops, you know, something like that.  It does happen and some investors do focus on stuff like that.  It’s not the general rule of thumb.  But once again, if it’s your own personal residence or if it’s a rental property, you may have some of that, but I want to point it out anyway, because if you have a nice home but the fence looks bad, it’s like having a nice car with ugly wheels.  You’ve got to make sure the fence looks as good as the home so, some people don’t notice that.  Same thing with the shed or the barn or the shop.  You may need to take the shed out if it looks bad, you may need to paint it or do something with it, the swimming pool, once again, what kind of condition is it in?  Pay attention to those things, every single thing I’m talking about here it doesn’t require a degree, you know that’s why I’m saying this, is don’t get overwhelmed.  You’re brand new to real estate and brand new real estate investing, don’t worry about any of this stuff, you can always call an expert, there is plenty of experts out there that if you’re not sure if you can get away with just repairing something or you have to replace the whole thing.  You know there are a lot business owners and contractors out there if they know they’re going to earn your business, they’ll come to your property a couple of times or at least the first time and do a walk through with you to help you understand when you can repair something or when you have to replace the whole thing, and that way, going into it the next time, you know what to look for and now you’re a little bit more of an expert.  Also home inspectors, you know, get a hold of them, they’ll come out and evaluate properties with you a tell you again, what you need to do in certain situations.  So that’s all part of the process, and again, the main thing is, don’t get overwhelmed you’ll get the hang of this.  Also keep in mind, each one of these checkpoints is really going to be determined by your exit strategy.  Listen, if you’re living in a property, you’re obviously going to spend more money than if you’re going to do a fix and flip.  You’ve got to keep that in mind.  If you’re going to do a fix and flip it doesn’t need to be up to your standard of living, it doesn’t mean you do a poor job on the property, but it just simply means, don’t make the mistake of getting so involved like you’re going to live in it cause you’re not.  The same thing with the rental property, you’re not going to do as much to it as if you’re living in the property or maybe doing a fix and flip, because you know, you’re going to have tenants in there and your tenants generally don’t take care of properties like you do so you’ve got to take that into consideration.  It all depends on your exit strategy.  When you’re going to buy properties in a neighborhood, make sure it fits in with the rest of the neighborhood.  You don’t want to have a home that sticks out and that looks really ugly compared to the rest of the homes and you also don’t wanna have a really nice home compared to everything else, you want to have a home that fits in with everything else but if you’re going to sell it, you want it to look just a little bit nicer than the rest of the homes, that way it will sell a little bit quicker and a little bit easier.

So, anyway, that’s a 13 point checklist for homeowners and real estate investors when you’re evaluating and purchasing property and that’s exterior, so make sure you watch the video series on the interior checklist and as always, please, go to our website, check out our videos and our blog and all the other information, we have a ton of information, it’s all free, so we got some really powerful tips and strategies to help you make a lot of money so if you’re serious about making money in real estate, we’ve got a guy on our team that made over $50,000 his first month wholesaling properties.  We’ve got a training system that will help you make a ton of money in today’s market.  Also go to youtube and check us out and subscribe to us there, anyway, dream big dreams, and go to work.  See you next time.

TAGS:

“property checklist” “buying checklist” “real estate investors” homeowners “property evaluation” “property analysis” “buying property” “real estate investing”

Hey everyone.  Jason Nedrow here with REI Success Mastery where we teach you how to become a highly paid, professional real estate investor.  Now today, I’m going to cover a 13 point checklist that homeowners and real estate investors should use when evaluating and purchasing a property.  Again, this checklist can be used if you’re purchasing your own personal residence or if you’re a real estate investor and it’s strictly for investment purposes, whether it’s buy and hold, wholesaling, fix and flip, rehab, this checklist will work for any of those situations.

There is a lot of content, a lot of information here so we’ve actually taken this video and we’ve actually separated it into 2 parts.  This is part one of our series.  As a matter of fact, this covers the exterior checklist.  Part 1 and Part 2 both cover the exterior.  We have a whole other training video series on the interior checklist.  So just to repeat myself, part 1 and part 2 of this series is the exterior checklist.  Again, there is a lot of content I want to give you here.  Now also keep in mind, even though I may look young, sometimes I have to have some notes in front of me, so if you catch me looking at my notes, please bear with me because again, I don’t want to leave anything out.  I want to do a good job for everyone, I want to do the best job I can, and I want to cover all of our basics.

Anyway, let’s go ahead and get started here.  Now some of these things I point out may seem kind of obvious, that’s okay.  I’m a firm believer being too informed is better than not having enough information.  You know, I’ve seen too many people get excited about real estate, buying a property, they go into it unprepared, they don’t go through their checklist they don’t do their diligence.  Unfortunately, too many times it comes back to bite them.  If you have any expenses later on, that can really, really hurt you.  I don’t want that to happen to you.  Again, being too prepared is better than not being prepared enough.

So number one on our checklist is the roof.  Now again, obviously, this can be a huge expense for you and it can make a big difference in your rehab cost and the purchase price of the property, so take a good look at the roof.  Is it possible that it needs to be repaired or replaced and again, you don’t have to be a rocket scientist, in other words, you don’t have to be an expert to see if there is any possible issues, and if you’re brand new to real estate, maybe there are some of these things you are not sure about, don’t worry about, because you can always call an expert.  You know there are a lot of business owners and contractors that will come take a look at the property with you the first few times till you really get the hang of it.  You can get a hold of a home inspector that will come over and take a look at the property.  So the first few times when you’re analyzing the property, if you feel like you need to have an expert there till you get the hang of it, that’s okay, go ahead and do it, but take a good look at the roof, because again, that can make a big difference.

Number two, the windows.  This is a huge selling factor for a lot of people, because the fact is, people more, now than ever are conscious about having an energy efficient home.  So does the property have the older, single pane wooden windows or is it the double pane vinyl windows, you know, because if they’re the older windows, you may have to replace those.  Now again, some of these factors are going to depend on you know, what you’re doing with the property, if you’re going to live in it, rent it out, that kind of thing.  Generally speaking, people want newer windows and if it’s got newer windows, what condition are they in?  A lot of the time, if the windows are stained people think they have to replace them, that’s not true.  There are companies out there that will come in and actually clean the windows, they’ve got a special formula for cleaning the windows and they can actually get them looking like new, and save you a whole bunch of money.  So take a good look at the windows.

Number three, take a good look at the exterior, just the general exterior of the property.  What kind of siding does it have, does it have metal siding, vinyl siding, wood siding, has it got brick.  You know a lot of your southern states with heavier winds, tornadoes, hurricanes, you know, you see a lot of brick homes.  So take a good look.  Does the exterior need to be cleaned or does anything need to be repaired or replaced.  You know, when it comes to metal siding for example, if you get a hail storm that comes through, a lot of times it’ll really dent the metal siding so you may end up having to replace some of the metal siding, and if it’s really poor quality, if it’s old if it’s faded, you may have a hard time, getting the color to match so, if you’re going to flip the property, you may have to end up replacing all of the siding so it looks good.  If you’re going to rent it out, you may get away with replacing just part of it.  It just depends on what you’re going to do with the property.  Same thing with vinyl siding, if a hail storm comes through, it damages it, and beats it all up, you may just be able to replace part of it, or have to replace the whole thing just depending on what you are going to do with the property.  Alright, wood siding, is there termite damage, again, you don’t have to be an expert, most people can take a look and see if there is any possible red flags or any possible issues.  So just take a good look at the exterior, and see if it needs to be cleaned, repaired, replaced, any damages, anything of that nature.

Number four, the foundation.  This is a big one, this is the one that people get really leery about.  Just taking a good look around the property, you can get a pretty good idea, are there any cracks in the foundation, and most foundations eventually will get a crack here and there, but a lot of cracks, are they big cracks, you know, that’s one indicator.  Also, what’s the landscaping around the property?  Does the landscaping actually go towards the house or away from the house, what I mean by that is for example, if you get a heavy rain, if the water is going to actually role towards the house, that means it’s going to go down by the foundation, you’re going to have some erosion and you’re going to have some issues at some point or another that’s not good.    So you want obviously, a property where the foundation is built up around or where the landscaping is built up around the foundation so the water goes away from it.  So that’s a good indicator, and again if it goes down to it, odds are there may be some foundation issues already.  Something else, I’m going to give you a little tip here.  It’s what’s called the marble test.  Take a marble go inside the property, go to one side of the house and see what happens.  Now if it sits in one place that’s a pretty good indicator that the foundation is okay, however, if it starts to roll pretty rapidly, that tells you, you may have some issues.  So that’s a really good test for you.  And if it’s a bigger house, make sure you go to a few different sections of the house because you know, if it’s a big enough house, big enough foundation, you may have part of it that test okay, but the other part you do that marble test it may not be okay.  So keep that in mind as well, but the foundation, again that’s important, it can be a big expense in your rehab cost.

Landscaping, and by the way with the foundation also, if there are issues, there are things you can do with that, that’s when you get a hold of an expert and they can help you out there, anyway. Number five, Landscaping.  This is huge, a lot of people don’t really think this is a big deal but it is, because curb appeal is your biggest factor.  They’ve done studies and they’ve found that within the first 60 seconds when somebody drives up in front of a home, they have all ready made a decision mentally whether or not they are going to buy the home, 60 seconds.  So you know, take a good look, what does the yard look like, in the winter, two feet of snow, you may not be able to get a really good idea so you’re going to have to do the best you can.  Again, what does the yard look like.  Is there a lot of weeds, can a little TLC bring it back into a good condition and again are you going to rent the property, are you going to sell it, are you going to live in it?  That also depends on what you are going to want to do with the landscaping.  Sometimes, you may just want to replace the landscaping, the flowerbeds, the trees, if it’s a nice house, but all the trees are dead, well obviously that doesn’t look good so you got to take that into consideration as well.  Here is something else about the landscaping.  Now I already mentioned around the foundation of the house that landscaping is built up or whatever, but here is something else, is the actual home built up?  Here is what I mean.  A lot of the older homes, years ago, they would build, the homes, pretty much level with the streets.  So if you’re in an area where there is a lot of flooding or during the wintertime when you get a lot of snow and in the spring it starts to melt, and what happens, a lot of those homes would get a lot of flooding.  Especially if they have basements, it was a regular issue.  You don’t want a property that is always flooding, if you’re renting it out, that’s going to be a pain in the neck and if you’re living in it, that’s going to be even worse, so you want a home that’s actually going to want to be built up, even with some of your newer homes you’ve got to pay attention and I’m telling you, a lot of people don’t notice things like this, but you see when you’re driving in a neighborhood, you’ll notice some neighborhoods, the homes are level at the street and some neighborhoods the homes are built up.  Your newer homes, generally, they’ve been built up, not always.  Sometimes you get these really shady contractors that kind of fly by night; they don’t have a good reputation.  They go from state to state, they’re building homes, they build a whole bunch of homes, they move on.  Unfortunately some states don’t require builders to have a license.  And some states, they’re not as strict about their codes as other states are.  So the fact is, you’ve got to pay attention no matter how old or how new the property is.  Good quality builders take their time to build up the home so that it sits up a little bit from the street, that way, even, especially if it’s got a street that’s especially important.  That way if you get a heavy rain or a heavy runoff with the winter, you don’t have to worry about your property flooding, so that’s a really good tip for you.

Number six.  Central air conditioning.  Now look around the property and see if there’s a central air conditioner or if there’s hook ups for them.  Now, I kind of chuckle at this because if the properties been vacant for a while, you’d be amazed at how many times, air conditioners get stolen, so pay close attention to see if there’s actually an air conditioner that’s supposed to be there.
Alright so anyway, so this is six out of our thirteen checklist points for homeowners and real estate investors for evaluating personal property, and again this is part one, so make sure you go to youtube and check out part 2 of our checklist or even go to the website at the bottom of this video and check it out there.  Plus we’ve got a lot of free content, a lot of free information on our website.  So go to our website no matter what, but make sure you go to part two and finish this off because I got some really good information that you’re going to want to hear about in that particular video as well.  So as always, dream big dreams and go to work.  See you soon.

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“property checklist” “buying checklist” “real estate investors” homeowners “property evaluation” “property analysis” “buying property” “real estate investing”

Hey everyone!  Jason Nedrow here with REI Success Mastery where we teach you how to become a highly paid, professional real estate investor.  Now today I’m going to share with you how professional real estate investors present a strong offer on a property.  As a matter of fact, I’m going to give you 5 keys to making a strong offer, so pay close attention.  Also keep in mind, these points I’m going to share with you really are going to vary from deal to deal because each deal is different.  You’re not always going to want to go in there with a strong offer.  So again, only use these if you want to go in hard and heavy and make a strong offer on a deal.

Alright so key number one, make a cash offer.  If you have a financing contingency that’s a much, much weaker offer.  Think about from the sellers standpoint, cash always is better.  cash is king.  So when you make a cash offer that’s much stronger.  And also keep in mind if you are using hard money or private money, that’s still considered a cash offer.  Now if you do make a cash offer you’re going to have to have proof of funds, and even if you’re using hard money or private money, you can still get proof of funds for that offer, but again, make a cash offer it’s going to be much stronger and it’s going to get you the results.

Number two, go in with a high EMD which is an earnest money deposit.  Now again, this is only if you want to make a strong offer.  You’re not always going to go in with a lot of earnest money, but again keep in mind, if the seller’s got two offers on the table, one from you and one from somebody else and each one of you are offering $200,000, however if you’ve got $10,000 earnest money and the other investor’s only got a $1000 earnest money, which one is the seller going to take.  Obviously your offer.  So the higher the earnest money, the stronger the offer is.  Now again, if you don’t care about the deal and so forth, then go with low earnest money.  That’s all part of the strategy.  These are only points again on those deals you really want to get a hold of.

Number three, wave your inspection.  Now this one I really, really got to caution you on.  This is not something you’re going to make a practice of, you shouldn’t make a practice of, and something I recommend except in those rare situation you really want to go in hard and heavy on a deal.  And only, I repeat only do it if you’re absolutely confident about the deal and the numbers and you know it’s not going to hurt you.  Alright so if you do want to make a strong offer, this is something, this is an option is really what it boils down to, and when you go into a deal, you don’t have to use all these points, you can only use a couple of them, you can put in a lot of earnest money, you can go in with cash offer and still have an inspection contingency in there.  So keep that in mind, but this is another point you can add to your arsenal if you do want to make your offer really, really strong.

Number four, close quickly.  Again, from the sellers standpoint, which one looks better to them.  If you close in 15 days or 30, or 45 days, obviously the sooner you can close the better it is for the seller.  That’s a lot stronger offer.  And if you’re a real estate investor, especially a wholesale real estate investor, it’s nothing for you to close in 10, 15 days.  Now ideally as a wholesale real estate investor, you want to close in 30 days.  That’s what you want to have your target date for, that way you’ve got plenty of time to get your buyer in place.  But see, this is another reason why we teach and train you to build your buyers list continually.  You’re always building your buyers list and you should actually build a buyers list before you acquire any properties, and that way once you’ve found a really good deal, you’ve already got a list of buyers and it’s nothing for you to close in 10, 15 days.  So that’s just another tool or a tip of the trade to really get the results you’re looking for.  But keep in mind, if you find a really good deal and you hurry and get on the phone and you get a hold of 10, 20, 30 fix and flip investors, or rehabors, or buy and hold investors, within an hour or two, odds are if it’s a good deal, you can find a buyer, and you can close within 10, 15 days, even if you don’t have a buyers list.  So keep that in mind, but close quick, that’s also a great way to present a strong offer.

Number five, reputation, reputation, reputation.  Now you can probably tell since I repeated that three times, why that’ so important.  It’s is important.  It’s probably the most important thing on here.  There’s an  old saying and that is your reputation will eventually you or it will help you, and that is absolutely true.  Listen, as a real estate investor, everything you do, everybody you deal with, you always make sure it’s a win/win situation.  Don’t get greedy.  Okay you definitely got to make money on these deals but make sure that your buyers are making money, make sure that everybody is making money, make sure the sellers making money, and so forth.  The fact is you take care of your people, you’re going to have an amazing reputation, people are going to want to do business with you.  Don’t get greedy, take care of your people, make sure it’s a win/win.  I’ll give you a great example of this.

You know, there’s an investor out there that he goes out there, he puts an offer down on a deal, and he has an inspection contingency.  What he does is he has a 10 day inspection contingency, he’ll bring in some home inspectors, some contractors, and give a full detailed report on the repairs on the property, then he’ll go back to the seller and he’ll say hey listen, I need you to come down on your price.  I’ve got a detailed list of repairs here and I need you guys to lower your price.  Now legally, is that okay?  Well sure, there’s nothing wrong with that but the fact is, because again he’s got a contingency in there, but ethically, it’s not right.  The fact is you tick a lot of people off that way, you’re going to upset a lot of people and nobody likes him, no one wants to do business with him because he’s always trying to find a way to take advantage of them.  So don’t do that.

As a matter of fact, when it comes to like, closing on a property, don’t make an offer, and set a closing date, unless you actually plan on closing.  Because again, if you backed out because of contingencies, the more you mess up your reputation, and again, less people are going to want to do business with you so really protect your reputation.  It is so valuable, and again I will give you one more example about this.

There is a guy on our team that has an awesome reputation.  He’s been a wholesale investor for years.  He takes good care of his buyers, his sellers, I mean people love to do business with him.  As a matter of fact, there have been times, I know one time in particular.  He made an offer to the bank through his REO agent, and his offer was $20,000 less than the other investors.  Obviously the bank was going to lose 20 grand taking his offer over the other investors.  But you know what?  They actually took his offer even though it was $20,000 less, and the reason is, is because of his reputation.  That’s it.  It was his reputation.  Because when he says he’s going to close, he actually closes.  He does what he says he’s going to do.  So even the banks will start to learn about your reputation, and because of that, they’ll start feeding you deals and they’ll actually want to do business with you.  Your reputation will save you and make you a lot of money down the road.

I know I spent a lot of time on that, but it is so important because I think a lot of people out there really don’t care about their reputation.  They think there’s plenty of people to do business with, they think you know what?  There’s thousands of people to do deals with in my area, I don’t have to care.  Listen, I don’t care who you are, I don’t care how big an area you live in or you’re doing business in, your reputation will catch up with you.

So anyway, those are 5 keys, that professional real estate investors use to present a strong offer on a property.  So thanks for taking the time to watch our video and please, go to YouTube and subscribe to our channel and that way you can get more free videos as time goes on and also, go to our website.  We’ve got a lot of videos, a lot of training, and it’s all free, and we’ve got some really powerful tips to help you make money as a real estate investor.  As a matter of fact, we’ve got a gentlemen that made over $50,000 his first month as a wholesale real estate investor.  Just part-time!  So if you’d like to know how he did it, there’s a free video you can check out at our website.  You can see exactly how he made over $50,000 his first month.  So once again, thanks for joining us and as always, dream big dreams and go to work.  See you next time.

TAGS:

property offer, offer on a property, making an offer, earnest money, real estate investors, real estate investing, properties, wholesaling properties, make an offer, close on a property

Hey everyone, Jason Nedrow here with REI Success Mastery where we teach you how to become a highly paid professional real estate investor.  Now today, I want to talk about the 2 types of REO properties for sell on the market.  Now if you remember correctly what we talked about before, REO stands for real estate owned, these are bank owned properties. They are bank owned properties that have gone through the foreclosure process and the bank has been unsuccessful selling these properties and they’ve had to take them back and their sitting in their books.

Now obviously banks don’t like this because banks are in the lending business and the more properties they have sitting in their books, the more it hinders their ability to make money.  So because of that, over time, banks become highly motivated and extremely eager to get these properties off their books.  Now this creates a huge opportunity for you, because REO properties should be one of your most valuable resources for acquiring properties for your investment strategy.  But you got to keep in mind; banks aren’t going to deal with just anybody.  You’ve got to know what you’re doing and that’s the key.

Now the first type of REO property we’re talking about is what’s called under-priced REO properties.  Now these properties are place way below market value, and that’s why you should make them your highest priority.  You should spend most your time on under-priced REO’s.  Now since their priced low, competition is really high.  This is where most investors spend their time and these properties get a lot of offers.  So your number 1 strategy here should be speed.  You simply want to beat everyone else to the punch, and always remember that money follows speed.  Now how do you beat everyone else to the punch?  Well, the way you do that is you build really strong relationships with the REO agents in your area.

Now REO agents are real estate agents that deal specifically with REO properties and they work directly with the asset managers at the banks.  If you take all the real estate agents in an area there is only a few of them that are REO agents.  You want to find out who they are, build really strong relationships with them, do what you can to help them build their business and make money and in return, they see that you’re doing deals and you’re a player and you’re a professional and what’s going to happen is they’re going to start contacting you about these underpriced properties before they get listed and before anybody else knows about them.  That right there is the key, that’s exactly what we’re talking about.  I can tell you, these relationships you build with these REO agents can make you a fortune.

I have seen individuals on my team that have picked up properties that normally would sell for about $340,000.  They were able to get a hold of these properties before anybody else knew about them, get em’ for $180,000 and after all that was said and done, they made a $75,000 net profit on these deals.  I mean, just one deal.  So again, under-priced REO properties make them your highest priority.  Build those relationships and make sure you get in ahead of everybody else.

Now the 2nd type of REO property we’ve talked about is what’s called over-priced REO properties.  Now these properties are more retail price, their prices are closer to market value and they generally have little or no profit margin in them.  Now because their priced higher, their competition is lower, in other words, 99% of investors out there don’t even deal with over-priced REO’s.  They figure it’s a waste of their time.  In order to create profit in these deals, you generally have to make such a low offer to the bank that most investors feel that it’s pretty slim odds that the bank is going to accept that offer so they don’t even try.  And that’s the sad part because they miss a ton of opportunities.  But here’s the good thing.  Since competition is low, it creates a huge opportunity for you, because these properties, since they priced higher, they generally sit in the bank’s books a lot longer, and the longer the sit on the books, the more eager the bank becomes to get them off their books and that also plays in your favor.  So your number one strategy on overpriced REO’s is simply a numbers game.

Your whole focus is to throw as much money as you can at the wall and see what sticks.  In other words, you want to make as many offers as you possibly can understanding that most of them aren’t going to get accepted.  That’s okay.  You know, don’t get married to the end result, just understand that most offers you’re going to make on these types of properties are not going to get accepted.  Alright, think of it like this.  If you made 100 offers in a month and only one of them got accepted, was it worth it?  Of course it was.  I mean that one deal could make you $5,000…$10,000…$15,000…$20,000…$30,000, or even more on just one deal.

Now your time is really, really valuable so a couple of pointers here.  Number one, make sure your not the one spending your time putting into these offers.  You want to find a buyer’s agent that will work with you and that you can build a relationship with and have them submit the offers.  Your time is way too valuable.  Submitting these offers, all these offers on a monthly basis can really eat up a lot of your time.  So how have a buyer’s agent do that for you.

The other thing is, okay you’re going to make these offers sight unseen.  The only time you’re actually going to go out and look at these properties is if the bank has made a counter offer that would be acceptable to you.  Then go out and spend your time looking at the properties.  Otherwise it’s a waste of your time, again your time is too valuable, but if they do make a counter offer and if it is something that would be acceptable to you, then what you want to do is go out and look at the property before you actually sign any contracts, to make sure your numbers are going to work out.  You know, the repairs and everything else, just to double check everything.  Alright, and when you do make those offers your obviously going to guess a little bit high on repairs and stuff because you haven’t seen the properties.

So there is definitely some strategies and were not going to go into a lot of that right now, but the main thing here is just make a lot, a lot of offers, that is the key and just accept the fact that only a few of them are going to get accepted.  The banks going to come back and their either going to say no or they’re not going to respond at all or their just going to counter with the original price and tell you to get real.  Or they’re going to counter back and they are actually going to come down a little bit, and you got to keep in mind that a banks counter offer is basically their body language, because if you can get them to come down a little, you can get them to come down even more.

It’s all in the negotiation, so you’re going to negotiate back and forth with the bank.  You know, multiple times and meet somewhere in the middle.  That’s the key, so with over priced REO’s, again just make a ton of offers, have a buyer’s agent make those offers for you, and once again understand that only a few of them are going to get accepted, but those few that do get accepted, they’re going to be worth your time because you not really spending a whole lot of time on these deals on the front end.  You are just simply making offers.

So hopefully this helps you understand a little bit more about the two types of REO properties for sell on the market and if you’d like more free information, just go to our website at the bottom of this video because we’ve got a lot of powerful tips and strategies that can help you make a ton of money and if you’re serious about making money in real estate especially in today’s market, definitely go to our website because we got a lot of great content, a lot of free information, and like I said, it’s free.  Also go to YouTube and check out our channel and make sure you subscribe to your channel, that way you can get emails, and automatic feeds to any future videos we roll out so we can help you be even more successful that way.  Hopefully you found this information valuable and always dream big dreams and go to work.  Make it a great day.  Thanks everybody.

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“real estate investors” reo “reo properties” “bank owned properties” “properties for sale” “homes for sale” “offer on properties” “deep discount properties” homeowners “residential properties”

Hey everyone, Jason Nedrow here with REI Success Mastery.  Today I want to talk about one of the most common questions I get asked which is why invest in real estate.  There’s a lot of powerful reasons why successful people use real estate as their vehicle for building their wealth.  I’m going to talk about a few of them today.

The first one is probably the one you hear most often, which is income.  The fact is you can make a lot of money in real estate if you know what you’re doing, and there is a lot of different ways to make money in real estate as well.  Whether you wanna flip properties to make huge lump sums of money or generate long term passive residual income by owning rental properties.  Either way you can make a fortune, again, as long as you know what you’re doing.  Now Forbes magazine came out with an article here a while back and they stated that out of all the businesses in the world, real estate has created more millionaires and billionaires then all of them.  See the other cool thing is it’s a flexible business.  So whether the economy is up or down  or sideways there are so many different strategies and different ways to make money that all you got to do when the economy shifts is you just shift to a different strategy.  But real estate investors, the smart ones, always know how to make a fortune in any economy.  It’s a very flexible business.

Now another reason why real estate is so powerful is deductions.  Not only are people always looking for ways to make more money, but they are also looking for ways to save more money, especially on taxes.  See real estate, from an investment standpoint, appreciates over time, but from a tax perspective it depreciates over time.  So think of it like this.  While your actual income is going up and your making a lot of money on your properties, your taxable income is going down because of the depreciation and the deductions you get to write off.  You can save a ton of money, in fact we’ve got people on our team that make more money as real estate investors then they did at their job and they’re actually paying less in taxes as a real estate investor then they did at their job, again another big reason to get in the real estate game.

Now the next one is equity.  Now equity is obviously  what is owed versus what it’s worth.  Now, I’m gonna give you an example of really how powerful equity is.  Let’s say that you own 10 properties and you wanna hang onto those properties for 30 plus years.  Now, your going to have tenants at those properties and over that period of time, whose going to pay off the mortgages?  Your tenants!  That’s another great reason to get in the real estate game.  Now at the same time, the value of your property is increasing.

So over a period of time, year after year, guess what’s happening?  Your equity is increasing, and what that means is that your net worth is also increasing.  Here is something else to consider, over time rents increase.  Your cash flow and your income is also going up while your net worth is going up, your getting huge tax benefits over that period of time.  And see your not doing anything.  Your management company is taking care of all the hassle and the headaches, your tenants are paying off the mortgages, and your sitting back and reaping the benefits.  See, that’s why if you look at people who retire wealthy and actually retire successfully, most of them use real estate as their vehicle.  Not the stock market.

The stock market is way too volatile, and stocks, hey let’s face it, there is always that chance they can be worth nothing at some point.  There’s a lot of people that hope to retire on their stocks and couldn’t because their stocks were wiped out.  But see, real estate always has value, it never goes to a 0 value per say.  So this is again why people should use real estate as their vehicle to retire.  It’s the safest and most secure way to build your retirement.

Now the next one is appreciation.  1969 is when HUD first started tracking housing values in our country and over the past 40+ years, what they’ve learned is that even though real estate goes up and down and up and down because of supply and demand, real estate over time always appreciates.  It always goes up in value, and the reason is, is because real estate provides a very basic need, which is shelter.  People always need a place to live.  So over time, our population continues to increase, which creates more demand for real estate which in turn creates value which in turn obviously drives appreciation.  So that’s another reason why real estate always goes up over time.

The last one is leverage.  This is probably the best reason.  Now obviously when it comes to money we want to make the most money with our money, we want to get the most return, just like with anything else.  Let’s say that you want to invest $20,000.  Now if you put that $20,000 in the stock market, you’re going to get $20,000 worth of stocks.  And if you get a 10% return over say, 12 months, then you’ve actually made $2,000 over that period of time.  But let’s say for example, you wanna buy a $100,000 home, now do you have to have $100,000 to buy a $100,000 home?  Of course not.  The bank will allow you to put a little bit down and borrow most of the money, that’s called leverage.  It’s simply getting the most with the least.

Now let’s just say in this example that we use that same $20,000 as a down payment to pick up a $100,000 home, and let’s say that homes goes up in value over those 12 months and that home is now worth, $110,000.  And just for the sake of this example, let’s say that you sell that home, you get your $20,000 back out of it and you actually made $10,000 because of that 10% increase over that 12 months.  Now again, there is a few other things to consider and so forth, I’m just keeping this very simple.  But the fact remains that you can invest $20,000 and make $2,000 or you can invest that same $20,000, leverage it with real estate, and make $10,000.  Which makes more sense to you?  Again this is one of the biggest reasons why wealthy people use real estate because they build their wealth, they can leverage it in real estate and increase it over and over and multiply it several times over, more than any other investment out there.

So if you’ve always asked the question “Why should I invest in real estate?”  Hopefully this answers that question for you.  Now if you’d like more free information and more really powerful tips and training on how you can succeed in real estate and make a ton of money in today’s market, just go to our free website here at the bottom of this screen.  It’s a lot of great content, a lot of great information, and again, it’s all free.  I hope to see you there, I thank you for your time, and make it a great day.

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why invest in real estate, make money in real estate, build wealth in real estate, real estate blog, real estate tips

Hey everyone, Jason Nedrow here with REI success mastery, where we teach people like you to become highly paid real estate investors.  Now today, I want to talk about exit strategies.  More specifically I want to talk about 3 primary exit strategies that you should focus on as a wholesale real estate investor.

Now before we get too far along here, the main thing I want to emphasize is having an exit strategy before you go into a deal.  The reason is, is it sounds pretty obvious, but in the last few years of being a real estate investor, you’d be amazed at how many novice, uneducated investors that I run into that get all excited about real estate.  They go out there, they buy a property, and now they’re got this property and they don’t know what they’re going to do with it.  And I’ve seen too many people burned by doing that because they can’t get rid of their property.  Don’t do that, that’s a no-no.  That’s definitely a huge recipe for failure.

I don’t share that with you to scare you because the fact is, is education is the best key to helping you avoid those kinds of mistakes.  Just understand that one of the cardinal rules in this business is that you never ever go into a deal without knowing your exit strategy up front.  Think of it like this.  You wouldn’t get on a plane without knowing your destination beforehand.  It’s the same thing in real estate.

Now as a real estate investor or more particularly a wholesale real estate investor, your strategy is pretty simple, it’s pretty cut and dry.  You objective is to flip properties, not hold onto them, but flip them as quickly as you can within days, weeks, generally within 30 days or less ideally and then move onto the next deal.  So you’re going to buy them low, sell them low and make a nice profit in between.

Now needless to say, when I talk about buying low, I’m not saying you actually have to buy the property.  Most wholesale real estate investors usually assign properties so wholesaling is one of the best way to get in and make some money in real estate without using your money or your credit.  Again, we’ll talk more about that another time.  You simply want to get in, get out, and flip the property, then move onto the next deal.  So the question really becomes who do you sell your properties to?  Well there’s 3 primary buyers that your going to focus on in other words there’s 3 exit strategies that you could focus on.  Now the first buyer can be a fix and flip investor or a rehab investor, they are kind of one in the same.  The second one is a buy and hold investor.  The third one is a retail buyer like a home owner.

Now what you want to understand is that each of these buyers, they each have their own individual objective, and different objectives and they each have their own criteria as far as what type of properties their looking for, what type of neighborhoods, they all have a buying criteria and a formula.  So I’m not going to get too far in depth in this because I want to save time and I don’t want to take too long in this video.  Think of it like this.

Buy and hold investors are more focused on renter markets like neighborhoods with duplexes, four-plexes and multi-families.

Fix and flip investors are more focused on retail markets, neighborhoods for first time home buyers on up, a little bit nicer neighborhoods.

Retail buyers are typically looking for those types of neighborhoods as well, so different types of properties.  Also keep in mind that their strategies are different.  Again, a retail buyer is more focused on finding a home that has some equity that they can live in for a while and so forth.  A buy and hold investor, they are trying to find a property that they can invest in that they can invest in, that will give them a good return on investment and they want to hold onto it for the long run.  That’s really their focus.  Their language is more talking about cap rates, and net operating expenses and so on and so forth and then net operating income and so on and so forth.  So it’s a little bit different buying formula.

Now fix and flip and rehab investors, their objective is not to hold onto the property or at least hold onto them for a very short amount of time.  They want to get in, find a property they can buy low, renovate it, turn around and sell it within 90 days or less ideally and move on to the next deal, so they’re not going to hold onto it for very long, they’re going to want to flip the property.  Now because of this, what you want to understand is each one of those buyers has their each own individual formula for buying properties because they’re looking for different types of properties with different types of criteria.  Which means you as a wholesaler, if your going to sell to a fix and flip investor, your buying criteria, your buying formula is going to be different then if you’re going to be selling to a buy and hold investor.  So it’s really important what you understand what the buying criteria is for each one of those investors, their buying formulas, your also going to want to understand repair cost and a few other things.

Now again, just to save time, we’re not going to go in depth on this.  I have more trainings, more videos on our website that goes more in depth on these things.  I want to make sure you really understand this stuff completely and fully and go through some examples.  Today I want you to understand that there are 3 types of buyers that are different and understand what to look for with each one.  Also I want to emphasize that we really don’t focus a lot of time and energy on retail buyers.  Typically because they tend to eat up your profits and it’s a lot longer process.

Retail buyers are generally not cash buyers.  They need financing, and a lot of times they need to go through FHA which is even longer and is a much more tedious process.  So, I wouldn’t make retail buyers your bread and butter, if you want to sell one here and there to a retail buyer, I’m okay with that.  I would make fix and flip investors, rehab investors, buy and hold investors, I would make them more of your bread and butter, because they generally have more cash to close, they can get access to capital quickly and they want to move quickly as well.

As a wholesaler, your objective is obviously to move as quick as you can, flip that property, make a nice deal, and make a nice profit.  So anyway, those are your 3 primary buyers, keep in mind that when you’re getting started in real estate, you really want to find a niche and you really want to become a master at that and target that niche.

I wouldn’t recommend that you focus on all types of buyers at once, focus on either fix and flip investors, or by and hold investors, or anything like that.  Pick one, become a master at it and become really good and dominate that niche.

As you get bigger and your business grows and you get a bigger team then you can start branching out into other buyers and strategies and that type of thing, but just pick one niche and go with it.  The great thing about wholesaling is that no matter what city you live in, no matter what the markets doing, up or down, sideways, as a wholesaler, there is always people you can wholesale to.  There are always people buying homes, renting properties, so you can always make money as a wholesaler.  It’s the simplest, easiest, and all around best way for anybody to make money.

Hopefully this helps you understand a little bit more about exit strategies.  If you’d like more information go to our website at the bottom of this video.  We’ve got a lot of free information.  A lot of very powerful tips and strategies to help you make a lot money in today’s market.  Definitely check out our website and if you want to get serious about becoming a wholesale real estate investor, we have an amazing training called wholesaling for fast cash that you can check out on our website that shows you step by step how you can become a very successful, highly paid, wholesale investor, it shows you everything from start to success.  So go to our website and also go to YouTube and subscribe to our channel.  That way you automatically get more videos and more updates and information as we continue to roll out more information for you.  Thanks for your time.  Glad you’re here today, check out our website and as always dream big dreams and go to work.  I’ll see you on the next video.

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“real estate market indicators” “real estate values” “housing prices” “real estate investors” “real estate investing” “housing values” “real estate appreciation” “housing inventory” “home sales” “buyers market” “sellers market” “flipping houses” “fix and flip investors” “buy and hold investors” “making money in real estate”

Hey everyone.  Jason Nedrow here with REI Success Mastery where we teach you how to become a highly paid, professional real estate investor.  Now today I want to talk about the number one resource that you should be using to help you find properties and homes for sale.
Now before we get too far along, obviously I want to emphasize that as a real estate investor, your objective isn’t just to find deals.  There are a lot of deals out there.  You want to find great deals.  Deals where the numbers make sense and where you can get them at deep, deep discounts, and right now in this market, there is so many of those deals out there.  You know, so you want to find properties that are in distress situations.  For example, homeowners who don’t just want to sell their property but they need to sell their property.  Something in their life, a job loss, a divorce, has created a situation where they need to sell.  Now as a real estate investor your objective is to make that a win/win situation.  You should always make it a win/win.   The great thing about it is you can go in there, you can help get what they want.  Help them avoid foreclosure and make some great money in the process.  It’s an excellent opportunity.

But even though there is a lot of homeowners that are motivated sellers right now, the most motivated sellers out there are the banks.  That’s right, the banks!  See the last few years, banks have been forced to take back an absorbent amount of properties.  Properties that have gone into default, they’ve gone through the foreclosure process and they can’t sell, and they can’t get rid of them, and they’ve actually had to take them back.  These are bank owned properties.  They’re REOs.  Now banks don’t want these properties on their books because it hinders their ability to make money.  They become liabilities; they become what are called toxic assets.  And again, the more of these they have on their books, the less money the bank’s making.  And also the longer they have them on their books the more money it costs them.  So banks are highly motivated right now, more motivated than ever to get these properties off their books so they can get back to making more money, and banks will go so far, they will actually take a loss on the front end, because the longer they hand onto those properties the more money it costs them so they are willing to take a loss on the front end in some cases just so they can get these properties off their books.  Now that’s what’s exciting, because you as a real estate investor, you can capitalize on this situation if you know what you’re doing, but you have to know how to find these deals.  And that’s the question, where do you find these properties?  These homeowners and bank properties.

There’s a lot of great resources out there.  There’s a lot of websites, I mean a ton of online resources.  You know, realitytrack.com, foreclosures.com, and so on. There are too many to mention.  And some are good and some are not so good.  You also got a lot of offline resources, newspapers, road signs, you know, “we buy houses”, that gets a lot of attention and I will tell you one of the greatest resources we use, networking events.  You know, networking with other real estate professionals.  Anybody in the real estate industry.  Contractors, real estate agents, brokers, mortgage lenders, anybody like that.  That’s one of your greatest resources.

But I can tell you, the biggest, the best, and the one you should be using above all of them is the MLS.  That is our number one resource.  That’s the one we favor the most.  Now you’ve probably heard of the MLS before.  MLS stands for multiple listing service.  It’s an exclusive service just for real estate agents and brokers.  Now there is a couple of reasons why we love the MLS.  First of all, anybody that sells a property, what’s the first place they think of, for listing that property?  It’s the MLS.  I mean 95% of the time, somebody has a property for sale, it’s listed on the MLS, so pretty good odds.  If you want to find a property that’s for sale, that’s where you are going to find it.  Another reason is it’s the largest collective database of properties in the country that are for sale.  I mean, not just locally but anywhere in the country.  So you have the biggest pool to sort through to find great, great deals.  Now I will tell you another reason is the search formula.  There is so much search criteria that you can implement with the MLS as far as location, size of property, type of property, I mean you name it and you can really narrow down your search and find exactly what you’re looking for.  So there’s a lot of reasons why the MLS is so powerful.

But I can tell you that your objective should be one of two things.  Either you want to make sure that you can find a real estate agent or broker that you can add to your mastermind alliance, somebody that you can tell them what you are looking for and they can feed you properties through their MLS service, and that’s one of the best things that you want to do.

Even better than that, one thing that we recommend, it’s not required but it’s one of the things we recommend to all our real estate investors is to get their real estate license.  Not so you can go out there and sell homes as a real estate agent and get a commission for it, that’s not the purpose.  The purpose that we recommend this for is to get your real estate license so you can have that exclusive access as a real estate agent yourself.  And that way you don’t have to rely on somebody else, you don’t have to wait for them to feed you properties, you know.  You tell them what you want, they find it, they give it back to you, If you have a real estate license, if you’re a real estate agent, you can access MLS 24 hours a day, 7 times a week, anytime you want.  You don’t have to rely on anybody else.  And that is really one of your objectives as a business owner, is that you don’t want to have to rely on all these different people, that you can have access to a lot of these resources yourself.  And that’s what we recommend.  That’s not required but I can tell you the vast majority of real estate investors on our team, they either have their real estate license or they’re getting their real estate license.  Now they’ve never sold a home as a real estate agent, but they do it because they want that exclusive access to the MLS.   It’s one of your best resources and I can tell you it’ll probably be the best place that you’ll find your deals.  So hopefully this helps you understand a little bit better about the best resource and especially the number one resource to help you find property and homes for sale.

Now if you like this information and if you want more free information, and really powerful tips and strategies to help you make a ton of money in today’s market, just go to our website at the bottom of this video.  We’ve got a lot of great content and if you’re serious about making a real estate investor, if you’re serious about making money today in real estate, definitely check out our website, because we can help you make a lot of money at this.  And also, go to youtube and check out our channel and subscribe to our channel and that way, any future videos we have, you can get automatic updates on those, and we can give you more great information as time goes on so other than that, as always, dream big dreams, go to work and make it a great day.  See you soon.

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Hey everyone.  Jason Nedrow here with REI Success Mastery where we teach you how to become a highly paid professional real estate investor.  Now today I want to talk about the four different types of real estate markets within the housing market, and this can apply to other types of markets as well, but we’re going to focus on the housing market right now.  Now before we get too far along, one thing I really want to emphasize is how important it is for you to learn and understand markets, and cycles, and trends, and timing, and also how to make predictions when it comes to markets and trends.  If you look at a lot of the highest paid professionals in a lot of businesses they understand markets and trends and timing and how to make those predictions so it’s a very important skill you want to develop and something you definitely want to study.

Now real estate, when you break it down to really its core essence, real estate is just simple supply and demand, cause real estate like any product out there.  Any time you have more supply than demand, the value of that product goes down.  Any time you have demand than supply, then that value goes up.  Again that’s true with real estate and any type of product.

So now that we understand that, the 4 types of markets that we’re talking about here, is first of all, you have what’s called a buyer’s market.

Now you have probably heard the term buyer’s market.  What a buyer’s market is, is when you have more supply then demand, and once again, the value of real estate tends to decrease and go down and in this situation, there are more houses on the market then there are buyers, and because of all the competition out there, the seller is at a disadvantage, which means the buyer has the negotiating edge over the seller.  So they can pretty much determine the price point, now from a wholesaling perspective this is an incredible market because you’re able to buy properties, not only low, but extremely low at deep, deep discounts and turn around and sell them all and make a nice profit.  So it’s a great market as a wholesaler.  So that’s a buyer’s market.

Now the second type of market is a seller’s market.  I’m sure you’ve heard that also.  Now a seller’s market is when you have more demand than supply.  In other word’s you have more buyer’s on the market then you do houses.  Now because of this, the tables are turned because there is more competition from a buyer’s stand point, obviously, they’re at a disadvantage.  The seller however has an advantage, they have the negotiating edge, they’re able to demand more for their properties and again housing values go up and increase in that type of situation, that type of market.

Now from a wholesaler’s perspective, this is also a great market.  Now here’s why.  When you know what your doing, when your educated, and you have knowledge, you are able to go out there and do things that other people that are uneducated are not able to do, so knowledge is the key, and in a sellers market, your able to go out there and buy properties, still, at extremely low discounts, because there is always great deals out there, there’s always distress properties, and there is always properties that you can buy out there extremely low in any type of market, even a seller’s market.  You can still turn around and sell those properties low and make a nice profit.  Again that is one of the great reason for being a wholesaler is because you can make a ton of money in both types of markets, both a buyer’s and a seller’s market.  So that’s a seller’s market.

Now the third type of market we’re going to talk about is what’s called a broad market.  Now a broad market, this is where the scale is pretty even.  There’s a lot of buyers and there’s a lot of sellers or there’s a lot of properties on the market so there’s a lot of rapid turnover, it’s a fast paced market, and there’s a lot of movement in the market.  It’s a great market and so forth, and again the buyers and sellers, the advantage is pretty neutral.  One doesn’t have an advantage over the other.  There is a lot of activity, a lot of transactions, a lot of buying and selling going on, and once again as a wholesaler you can go out there and you can make a ton of money because there’s always deals you can get at incredibly low discounts and turn around and sell em’ low and make a nice profit.

Now the fourth market we’re talking about is what’s called a thin market.  A thin market is a very slow paced market.  There’s not a lot of transactions going on, not a lot of buying and selling, there’s not a lot of buyers or sellers or properties out there so it’s a very stagnant or very close to stagnant market.  Once again, just like I’ve been saying, as a wholesaler you can still go out there and make incredible money because even in a thin market there is still are buyers and there still are sellers and if you know what you’re doing, you’ve got the advantage over all of them, because you’re a professional and professionals know what they’re doing.  So those are the four types of markets, buyer’s market, seller’s market, broad market, and thin market.

Hopefully you found this information helpful and if you do, please go to YouTube and subscribe to our channel so you can get updates on more videos and more information as time goes on and also, go to our website at the bottom of this video.  We’ve got a lot of free information, a lot of really great and powerful tips and strategies to help you make a ton of money in this market and it’s all free and again if you really want to get serious about being a wholesaler we’ve got an awesome course called wholesaling for fast cash that you can check out at our website as well, that will really show you step by step how to become a very successful and highly paid wholesale real estate investor.  Thanks again and once again, dream big dreams and go to work.  Make it a great day.

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“real estate market indicators” “real estate values” “housing prices” “real estate investors” “real estate investing” “housing values” “real estate appreciation” “housing inventory” “home sales” “buyers market” “sellers market” “real estate”