CLEANlNG TARNISHED AND DIRTY METAL

Sometimes when you are fixing up a property you like to maintain a certain look using existing door handles, knobs or other metal pieces.  Here are some ways to clean up those existing metal parts.  Watch my video:

 

PROFIT SAVINGS TECHNIQUES FOR BETTER CASH FLOW AND LONG-TERM GAIN

Profit saving techniques for better cash flow

THIS IS A REPOST TAKEN FROM A SWFLREIA POST (SOUTHWEST FL REAL ESTATE INVESTMENT ASSOCIATION)

Management tips and profit saving techniques for better cash flow and better long term gain.

profit saving techniques for better cash flow

  • All rentals that have carpet flooring should have no pets!! (Long term investment property should not have carpet at all, they should have TILE flooring!)
  • Glass top stoves are the best. they last longer and have less parts to go bad.
  • Perform Quarterly Inspections  (check a/c filters, well equipment) You change/inspect the a/c filters while you are there.
  • When meeting with your prospective tenant check these things; the upkeep and condition of their car, and drive by if previous rental is local.
  • Prorate the second Month.
  • Make it as easy as possible to pay (envelopes, labels, electronic payment options).
  • Video tape/take pictures with your tenant in the pictures when you move them in.
  • Run back ground checks! You get what you inspect not what you expect. Do more than just call their references, employers, and previous/current landlords. Use the internet (Google/Facebook are your friends).
  • Be respectful and reasonable but do not be friends with your tenants.
  • Do not call, return missed calls, and/or see how things are going with your tenant.  Only respond to specific messages for for specific purposes.
  • Be realistic with your monthly rent ($50 more for an overpriced home can add months of vacancy).

Expenses over $300 are what kills your annualized returns.

 The most common expenses over $300 are;

  • Roof
  • Septic System
  • A/C
  • Well Equipment
  • Appliances

 

Budget these for replacement.  They will last longer if they are properly maintained

 

Rehab/maintenance costs

  • Tile verses carpet
  • Pool maintained by tenant or by pool company
  • A/C filters changed by owner/manager or tenants
  • Have tenants maintain well equipment verse company

 

Mistakes to avoid when investing in Real Estate

  • Do not estimate or use the opinion of someone else to determine market value. (Used recently sold comparables to determine value)
  • Never make a decision on impulse or emotion
  • Avoid investment property that is not separately metered (water or electric)
  • Septic vs. Sewer, Well equipment vs. City water.
  • Avoid fixer uppers outside of your expertise or have an expert (GC) with you
  • DISCLOSE, DISCLOSE, DISCLOSE (i.e. licensed realtor)
  • Find out about the financials, board membership, and rules and regulations when purchasing in a community
  • General contractor vs. jack of all trades… Never band aid a repair or rehab a property halfway…
  • Have either an exit strategy or long term plan for the investment (when you sale with the asset be purchased by another investor or an end user?)

BUYER BEWARE WHEN GETTING TRAINING AND COACHING PROGRAMS

HAVE YOU SEEN OR HEARD THIS?  THE FIRST TWO PARAGRAPHS BELOW ARE  TAKEN DIRECTLY FROM THE CONNECTICUT  DEPARTMENT OF CONSUMER PROTECTION WEBSITE.

This Free Seminar Can Change Your Life!

Flip real estate for easy profits. Get a high-paying job.  Start a successful online business. Find the best investments. Hundreds of seminars are offered every day across the country, promising fulfillment, success and wealth. 

In many cases, the seminar will be mostly hype and selling the dream of success, rather than providing actual content to help you achieve success. Often, free or low-cost seminars are just teasers for much more expensive and extensive courses or seminars.

Many of these “seminars” are very controlled sales pitches. They look great, and they can be exciting and seem helpful on the surface.  Many are, however, designed to extract money from participants before they walk out the door.  Caution is the key.  Be sure that you are getting valuable materials and information before you pull out your wallet.

 

The State of Connecticut Department of Consumer Protection goes on to say that you must be careful of programs that have you filling out an application.   Sometimes they may make it seem like the program is an exclusive program by using an application process, which then can lead you in to signing for high interest credit.  You then may find yourself paying for a high-priced program using that high interest credit.

 

I deal with real estate investing. I have spent tens of thousands of dollars educating myself in the area of real estate investing as well as learning “on the job.”  I can tell you that virtually all free two hour seminars are designed to get you pumped up and excited to spend your money on very expensive programs.  They make it seem like you can be a success in your sleep.

Time to wake up! This real estate investing business isn’t easy, but yes, you do have to know what you are doing and you can get this through education.   I do not offer these free sessions that provide bits of information but then require you to pay big bucks to fill in the gaps.  I provide solid information on developing a system for investing in real estate. Specifically, flipping real estate. 

I have used my extensive education, business experience and investing experience to develop an honest program that entails a full day of training as well as hours of videos.  My live one on one training then provides you with months of continued consulting, my materials, and my videos.  If you do not want my in-person consulting you can just take the videos (approximately 5 hours on flipping and 2-3 hours on wholesaling real estate).  These videos are broken into 15 -35 minute presentations by topic.

Get in touch with me to discuss how I might be able to help you.  There is no obligation, but I will consult with you about your goals are and we can see if I can help you.

 

Mark Valenti

Propertycoach411.com

Propertycoach411@gmail.com

https://propertyrehabprophet.theblogpress.com/

 

860-294-4494

Flip Single or Multi-Families Part-Time and Earn $25-$50k Per Flip

You do not have to be a full-time real estate investor to do well in real estate investing.  You can do this part-time, keep your job if you want, and make as much or more than you may be making in your full-time job!  Why keep that full-time job then?  Well, it is up to you.  Do you get good medical benefits?  Does your employer match or help you with funding your retirement?  Do you get to travel in your job to places you may not otherwise be able to see?

There are a variety of reasons you may want to stay employed, but real estate investing can open new doors and give you options.  See my video discussing flipping houses and multi-families and knowing the cost in buying and holding before you decide to flip or hold that rental property.

https://youtu.be/akVOgqGX8N0

How Much Rehabbing is Necessary to Make a Flip Profitable?

The amount of money and effort you should put into rehabbing and renovating in order to sell fast (flip) and make a profit can sometimes be somewhat of an art.  Something you must be careful of when flipping houses is not to overdo the rehabbing.  You must find a happy middle ground of fixing up the house so you do not under or over repair the house.  Often this boils down to knowing the neighborhood and having the experience of rehabbing to gain a sixth sense about flipping. 

Bathroom and kitchen overhauls are a must and should “pop” to become a big selling feature.  The bathrooms and kitchens are the two biggest selling features in the house.  Redo those areas from top to bottom.  Get new appliances.  If the kitchen, bathrooms and appliances do not stand out, you may have a deal killer.  Hardwood floors are great, but often you can substitute laminate flooring for less money.  There are also tiles that look very much like wood that can be used in kitchens and other areas.

Carpeting in bedrooms is fine.  I often feel that carpeting in upstairs bedrooms works as noise deadening.  It also looks good.

Painting all the rooms is a must and should go without saying.  A good neutral color is what I like to see with a bright white trim semi-gloss to give character and contrast. 

A new roof must be factored in if needed, but do not spend much on a garage.  Other items to look for include the heating and cooling systems.  A new furnace or boiler, hot water heater and air conditioning system can be big ticket items.  These are great selling features, but if you do not have to replace them don’t.

The exterior of the house is what makes a first impression.  Landscaping, a clean looking exterior and a sealed driveway go a long way to adding great value to the property. 

Know the neighborhood and rehab accordingly.  Don’t be the Ritz in a Motel 6 neighborhood.  These concepts hold true for rental property as well.  Don’t overdo the repairs and renovations for rentals.  It should always be clean, comfortable and meet codes, of course.  But you will only get a certain amount of rent in a particular area no matter how glamorous you make an apartment.

 

THINGS TO CONSIDER WHEN STARTING YOUR BUSINESS

THINGS TO CONSIDER WHEN STARTING YOUR BUSINESS

There are a number of things to consider when you are first starting out.  You want to look and act professional.  There are things you can do in order to develop and maintain the appearance of being a business person and being professional in your chosen trade.

To begin with, set up an actual business.  Working under your own name is not necessarily the best way to go.  Including your name as part of the business name may be OK, but consider other ways of promoting yourself through the business name.  You must establish a legal structure.  Not only for the professionalism of having a business, but for legal and liability issues as well.  Most new businesses are going the LLC  (Limited Liability Company) route these days as opposed to a corporate structure.  It is fairly easy to establish an LLC in most states, and it protects you as a business owner.  The LLC should have a Operating Agreement and Membership Certificates prepared to cross the t’s and dot the i’s of the LLC requirements.

You should consider a separate email address that ties in with the company name, and also a website and logo as you begin to grow.  Many times I will also suggest things like tee shirt or hats with the company name and logo included.  Of course, a business phone number is a must (consider google voice) and business cards are essential.

Looking and acting professional goes a long way in helping your business.  Try it, you will like it!

IS FLIPPING WITH LITTLE OR NO MONEY POSSIBLE?

I am often asked if flipping with little or no money is actually possible.  I use to think that it was not really possible to flip a house with no money.  I felt that it was necessary to have some of your own money invested, either during the purchase or during the rehabbing.

Recently I have been working with another flipper who frequently uses a hard money lender.  A particular hard money lender he uses did not allow second mortgages on the property being flipped.  The lender wanted to see that the flipper had some “skin in the game.”  It is not unusual for a hard money lender to write into their note/mortgage that no second mortgages are allowed.  So, when this flipper found a great house to flip, and had his money with other projects, what did he do?

Well, we figured out of way of getting 100 percent funding for the flip.   We had to provide some security without putting a second mortgage on the property.  What did we do?  We found another investor who normally funded flippers, but he also usually wanted a first mortgage with no seconds.  After showing him the past experiences and successes of my flipper friend we made him an offer that he could not refuse.  

We offered to put his LLC on the deed as part owner of the property.  The property was quitclaimed to him after the closing.  He was then 50% owner.  Now, in order to secure his funding, and put him at lower risk, a note was prepared which indicated the amount of his investment and the interest rate that he would receive.  The investor was not participating in any income or loss from the sale of the flip when it was completed.   He was getting his principal back with an agreed upon interest rate.  Since that time I have worked with flippers who have also been able to do this.  So, as you can see, finding the right investor and using this tactic can lead to flipping a house.  This shows it can be done with little or no money of your own.  As long as the numbers work, it can be worth doing.

TRANSACTIONAL FUNDING FOR WHOLESALERS

Transactional funding for wholesalers has become more and more prevalent when a double closing is needed to wholesale a deal to an end buyer.  Essentially, transactional funding is a short term loan which funds a real estate closing for a short period of time.  This allows a wholesaler to actually buy the property from the original owner first.  Once that initial closing is completed the wholesaler then sells that property to the rehabber/flipper by having a second  closing within a short period.  This is usually referred to as a double closing.  Both closing take place with little time passing between the first and second closing.  Often they are done back to back.

The transactional funding party will generally take the appropriate steps to verify that the end buyer has been approved for closing and has the required funds in place before they will fund the first part of the deal.  The fee charged by a transactional lender is usually between 3 and 4 points (the percentage of the principal amount of funding).  Generally if the deal extends beyond a 24 hour period you will find that there will be a pretty steep interest rate charged to the wholesaler, in addition to the points, which will cover the number of days that the loan is outstanding.  Interest may be as much as 12 to 14 percent in many cases, which should inspire the wholesaler to get the deal done very quickly.

Transactional funding of a wholesale deal is not uncommon.  It seems like the concept of this type of lending has become more prevalent since the collapse of the real estate market.  Traditional lenders became more weary of certain types of funding once the real estate market situation changed.

The bottom line is this, if transactional funding is the only way to close a deal and you will make money by using this source of funding, do it.

Please visit propertycoach411.com and find me Property Coach on Facebook.