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Video 38 of a 52 week series on SoldSignBlog.com Welcome toyour weekly Tuesday Tip courtesy of RE North Central! Todays topic is titled Making Money Working With Expireds! For more information on RE/MAX, check out our 8 Minutes with RE/MAX video at www.SoldSignBlog.com! Every Tuesday, watch your inbox for the FREE Video Business Tip of the Week from renowned industry coaches, Verl Workman and Terri Murphy! These videos are fun, energetic and most importantly educational!
A new paint job is an easy, inexpensive way to give your house a facelift before placing it on the market. A fresh coat of paint in a room like a bathroom can help sell your home faster. Whether you do it yourself, or hire a handyman, a paint job will be quick, and give you a lot of value for your money. Watch this and our other Expert Real Estate Tips videos for more DIY and handyman project ideas.
Real estate tips from Danyl Collings of REAL ESTATE EXECUTIVES.Information is provided by “It’s Time to Move Up”, the real estate resource for consumers who want their questions answers in ways they can understand. For more information please visit www.danylcollings.com or www.itstimetomoveup.tv
www.LarryGoinsFreeOffer.com Larry Goins Presents Foreclosure Investing Tips And Invest In Real Estate Tips With Todays Topic How to Get Out of Debt Fast With Tenants. See www.LarryGoinsFreeOffer.com For More Information Now!
www.apartmentwealthmachine.com and Lance Edwards Present Apartment Real Estate Tips and Invest In Apartment Building Tips with Today′s Topic 4 Exit Strategies To Use With Multifamily Deals. For More Information On Topics Like This Go To: www.apartmentwealthmachine.com
I wanted a simple program that we could use to quickly calculate how much we can pay for a property. I’m so amazed at how fast you can make an offer when using this program! We make our first offer before we get off the phone and make our offers with 100% confidence.
Simply enter the after repaired value (ARV) because you’ve already preset the other costs. Then enter the amount of repairs and it calculates your offer automatically! You can even list how much you want to make!
Let’s take a look at a deal.
If they tell me the ARV is $100k. I’m calculating $100k times .7 and that’s $70k.
Then I deduct hard money closing cost, which averages four points or $2,800. That reduces it to $67,200 and based on past experience the taxes, insurance and attorney fees for this will be $2,250. Now it’s $64,950.
I’m told it needs $15k in work, so I reduce it by $15k. That leaves $49,950. Now I subtract my desired profit. If I want to make $5k, I cannot pay anymore than $44,950, so I offer $38,780. Always use an odd number because it lets the Seller know that I’ve done my homework. If I just say $38k, they think I’m just throwing a number out.
We buy 10-15 monthly and never look at them. I don′t recommend doing this starting out; but once you do it for a while you can too. Once you get my system setup and implemented, you can go into any market, in any city, anywhere in the country and buy and sell property.
That’s exactly what we do. We set up new markets every month in areas we’ve never been before. In fact we just completed a transaction in Cleveland, OH. We had it sold before we closed. We bought and sold it the same day and made $8k.
When buying in my market, I need to be in it at no more than 70% including purchase, rehab and closing costs. That’s if I’m rehabbing it. However, if I’m buying a property that’s an ‘Instant Landlord’ property, meaning that someone else has already bought it, fixed it up and is re-selling it or if it’s a property that’s already in good shape; I can pay up to 80% depending on the cash flow. I wouldn′t recommend paying more than 80%-85% on a property. I also don′t recommend financing more than 80%-85%. You want to leave a little room in the event you need to sell quickly.
That way you’ll always be able to sell that property. Remember your area may be different. You’ll have to ask other investors in your area and do some research to find out what the market will bear. If the property needs no repairs, you won′t need a rehab loan. You can probably get a traditional loan up to 100% depending on what you can qualify for and that way you’ll be in the house for no money down.
However, if your goal is to buy, fix up, re-finance and rent out, in most markets you will need to buy them at no more than 70%. Fix it up, re-finance it at 75%-85% loan to value, and pull out the cash, which is TAX FREE cash, as you don′t pay tax on borrowed money. Then you can rent the property out at a positive cash flow and have Tax Free cash in your pocket.
Flipping a house with a $5000 budget is totally possible. Flip a house with $5000 budgetusing the real estate tips in this free video. Flip a house with a $5000 budget using the real estate tips in this free video. Expert: Richard Blake Bio: Richard Blake is a licensed real estate agent that has closed more than 20 times the number of transactions per year than that of the average realtor for the last three years. Filmmaker: Christopher Rokosz
