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How to Sell Your House as a Rent to Own

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If you own a dwelling and have any interest in either selling or hiring it at some quality in the future, listen carefully because what I’m about to share with you could applied tens of thousands more in advantages in your pocket. If you’re renting, almost completely eradicate all proprietor headaches. Plus, right now there is a huge opportunity to apply this technique in today’s market

Three Ways to Grow Your House into a Cash Flowing Machine

This was the entitle of a previous video in which I describe the concept of offering a lease to own on a single clas dwelling. Evaluating by the feedback, many beings had never heard of this before. Now, examine, I didn’t invent this. This has been around for a very long time. Sometimes it’s called a lease obtain, or a lease obtain alternative, or a lease alternative, but current realities is offering the belonging on a lease to own can be incredibly advantageous. So many questions came, and so many beings asked me to shoot a video specifically about offering a lease to own, that here it is. This is the official video from me on how to sell your mansion on a lease to own.

Why Rent to Own?

Reason Number One: More Money

When you give a belonging on a lease to own, you two are get what we call an up-front alternative pay. That pay can be anywhere between three to five to ten thousand dollars or more up front. That’s nonrefundable money, symbolizing they applied the money up, and I’m going to go into greater detail in a moment on exactly how this thing labors, but they’re going to give you up-front money that’s nonrefundable. That is if they don’t buy the belonging you get to keep it. That’s thousands and thousands of dollars up front. If you’ve ever been a proprietor before, if you’ve ever gotten a deposit, it doesn’t mean you can use that accumulation. Sometimes you’re wishing you are able, but you can’t. With a nonrefundable up-front alternative pay you can because it’s non refundable. Now , not always, but in some cases your rental rate can go up. That has to do with provide what’s called rent credits, which we’ll get into in just a moment. Perhaps the most difficult one of all is that you can have an increased sales price, so increased price, and here’s the key , no boards. When you sell on a lease to own, you don’t have real estate agents implied, and examine, six percent is a lot of money. Especially if we’re talking about a three hundred, four hundred, five hundred thousand dollar mansion. That’s a lot of money. No boards, and usually you can sell at the top end of what it’ll asses for. That’s key. If you can sell it for the maximum it appraised for, sometimes that’s more than it would sell on the open market. When you’re a proprietor, and many of you watching have maybe been a proprietor, or talked to somebody who has, you have this fear of maybe changing or fixing toilets at 2am. With a lease to own, since the person is going to become the owner, you do the tenant fix everything. Why are you able structure that kind of arrangement? Because they’re going to become the owner. You can say,” Look, you are just running yourself into what you’re going to be shortly, and that is the owner of the belonging, so you have to get used to these occasions like fixing toilets because now you’re the owner .” For them, since they’ve got a locked-in alternative price, they feel like they’re contributing to their own dwelling. Right? They are not quite as annoyed by tying the hot water heater or those sorts of things. The largest potential dwelling buying population are millennials. Those are beings the hell is out of college right now, they are in their twenties or thirties. The millennials, that entire generation, that twenty-year stymie of beings is a huge potential dwelling buying audience. Get this, fifty percent can’t qualify for a lend. You think of all those millennials that are getting married, they’re having girls. Now, sure they may have rented in the past, but now their life is changes. Now they want that single clas dwelling with that white-hot picket fence. Fifty percent of them can’t even get a lend. This lease to own is for those people. This is this huge ocean of possibilities. If you put out, and I will talk more about these lease to own signalings there in a minute, you put out a lease to own signal, you’re going to have the phone ringing off the hook. You have to send it to a voice mail. That’s how many announces you’re going to get. Humongous opening, and right now is the time because there are so many beings that fit into this category the hell is perfect for the lease to own.

Quick Tip

If you don’t know what to do as far as a rental agreement, I want you to hire best available expulsion advocate in the county where that owned is located, or if you’re in Louisiana, parish, or if you’re up in Alaska, burrow.

You want to get the more good expulsion advocate and ask them for their rental agreement. Get your rental agreement from a really good expulsion advocate. There’s your large-hearted tip. Okay, then tell them if they’re the one informing it that wishes to the tenant to pay all restores. Okay, great.

Another Little Tip:

Make sure you made at least some small situate, even if it’s a hundred bucks. Do a deposit of a small amount. Don’t do a zero situate. Then, it’s a ordinary rental agreement with the rental proportion and all that merriment stuff.

Option Agreement

Okay, sift to that is this thing called an option agreement. These alternative agreements have been around in real estate for a very long time. A fortune of commercial-grade real estate is done on options.

They’ll get an option on tract. Let’s say a developer wants to build a Target shopping center and they need forty acres. They might get an option on ten acres here and ten acres there because they don’t know if they can get the other twenty acres.

Option agreement :

this is a separate certificate. This is going to stipulate what the price is, and it’s also going to stipulate, in a number of cases, what those rent ascribes are liable to be. What are rent ascribes? What they just is when the person makes an on-time rental payment, a portion of that rental payment goes towards this cost. What they just is when the person makes an on-time rental payment, a portion of that rental payment goes towards this cost. The other thing, of course, is your upfront sum. Now, the upfront is what pays for the alternative. In other messages, you’re not handing the option to buy away free of charge, just like a owner doesn’t allow a developer to get an option agreement on their owned free of charge. The potential, we call them a tenant purchaser, this hire to own person is going to pay you for this agreement of policy options. This is going to be the maximum amount it will assess for. It actually has to asses for the amount you’re offering because they’re typically going to be get a lend. We’re not asking for you to sell the owned for more than appreciate. We’re telling you to sell it for the maximum it can be valued at. That can be done through comps. I have other prepares and videos on that, so alternative agreement is distinct from rental agreement. What points up happening is if the tenants don’t fee, this is the document that you bring to courtroom to eject them. Then, this is the document that stipulates that this amount is nonrefundable, so if they get kicked out, they likewise lose their alternative fund as well. The neat event about these rent ascribes is that it helps them construct some equity, if you will, because it’s compensating down this cost. If you have been able should be considered this, if the cost is a hundred thousand here, and then they put down five thousand as their down payment, well , now all they genuinely owe is ninety-five, but likewise, if they’re making hire ascribes on time, let’s “re saying you” give them two hundred dollars a few months, that’s twenty-four hundred dollars a year. After two years that’s forty-eight hundred. That’s almost five more thousand dollars they’ve built in equity. That’s absolutely fantastic for them.

  • They look at it as renters, and so they’re going to compare the math to what it costs to lease. See sure you don’t to continue efforts to overprice the monthly remittance .
  • The only channel you can get away with that, as I mentioned, you can sometimes increase the rental rates, is that if you render rent credits and you say,” Well, okay, if you do a thousand dollars a month, then you will get a hundred dollars going towards your lease credits, but if you go to eleven hundred a month, then I will go to three hundred in lease credits .”
  • You might say,” Wait a minute, Phil. You exited up by a hundred dollars, but here you exited up by two hundred .” I sure did .
  • Why I did that was in most cases, statistically they’re not going to be able to actually close on the belonging, so I can cause the lease by a hundred and still make out better by offering to give them three hundred in lease credits because they may never take advantage of this .

Now, again, going back to the ethical problem, I’m giving the opportunity of a lifetime, just because they don’t are benefiting from it is their own fault. I’m not potting on them to fail, but I am seeing that in most cases, statically, they’re not going to follow with their option to purchase, so I can increase the rental income by a hundred horses, and then offer them … The reason why they’d take this additional, even though they’re compensating a monthly remittance sensitive, is because I’m giving them so much more of a lease credit. See gumption? Okay.

Number two , get good law help.

  • The issue is not that this has any problems from a law standpoint .
  • I mean, you have been able lease a belonging, and you can sell a belonging with an option to by. That is so basic to real estate .
  • The issue is whether or not, when you have an option to purchase and a rental agreement at the same time, does that spill over into being an installment marketing, and if so, the reason why that would be a problem, number 1, is perhaps if it runs into those constitutions related to stirring sure you handle your owner financing accurately. I’ve got a whole video on that .
  • That’s a relatively new law, but “the worlds biggest” problem is if you ever tried to kick them out since they are not compensating you. Then you’re trying to evict them and the reviewer might say,” Well, wait a minute. This is an installment marketing. This needs to go through foreclosure .”
  • Get good law be used to help make sure. In most cases, if you’re doing a rental agreement and an option agreement, you don’t have this problem, but I’m not giving you legal advice, so remain that in memory .

Number three is this, I had talked about earlier how you have to make sure you send all of your commerce to a voice mail because if you don’t you’re going to get so many calls.

  • How do you get those labels? You can get them from a CraigsList ad if you run a CraigsList ad for lease to own, or signs .
  • Let me picture you a sign. This sign right here. Right there. Can you see that? That’s the sign right there. You do that handwritten sign, you place that up all over the place, any where in and around and near that belonging, you’re going to get the phone ringing off the hook .
  • Hand written is the key. Don’t go to some professional gazing one .
  • Now, this one, this is actually a hand written font. I didn’t handwrite that, but it seems hand written .
  • I guess number three is send a voice mail so you have some sanity. I’m telling you, you’re going to get so many phone calls you’re not going to believe it. Transmit it to voice mail .

Rent to Own Pitfalls

Choosing Unwisely

  • So I’m going to say a bad renter purchaser .
  • I have a great video on what every landowner should know about belonging handling .
  • The main rule in the whole video, I’ll shortcut it for you, is choose your holders, or in such a case tenant buyers, wisely .
  • You’ve got to research their situation. You’ve got to look at where “hes living” now, where they lived before, talk to the previous landowners .
  • Heck, even drive by where “hes living”. That’s a great way to see the channel they’re going to treat your belonging, is the channel they’re treating their subsisting belonging .
  • Do research on their employment .
  • Do all kinds of things to make sure you got the right person in there, because formerly you move them in, it’s a lot harder to get them out of there .
  • Number one is a pitfall is a bad renter purchaser .

No Legal Help

  • For speciman, in Texas, in the state of Texas you can’t to a lease obtain for more than six months .
  • Make sure you know your material. Get law be used to help make sure that you’re applying this correctly .
  • It’s potent, but it also can be dangerous .

Low Down Payment

  • If you consent about a thousand dollars, which is the same as it would be if someone was putting a deposit on a normal rental, for your nonrefundable option remittance, well then you’re probably going to run into a problem because this person won’t be able to afford the monthly remittances .
  • These beings are trying to become homeowners, so “youve got to be” select from a fiscal position as well .
  • Do they have the money to have the wherewithal to be a homeowner? Being a homeowner is expensive, so you’ve got to make sure you chose wisely, both from the perspective of them has become a renter, likewise how much they’ve got available to drop off .
  • If you don’t market very well, you put up one sign and get one phone call it’s your own fault. You’ve got to market heavily to get the phone calls to get the few people that have a whole lot of money to put down, the three, the 5, the seven to ten thousand dollars down, because often experiences that’s a lot of money to them and they’re less likely to walk away from that or make difficulties .
  • Not always; not always the case, but often “the worlds biggest” the down payment, the safer it’s going to be for you. Just like a bank. Banks like to have twenty percentage down, right? Why? Because they’ve seen over duration, “the worlds biggest” the down payment, the better the borrower going to get .
  • That’s how to sell your house lease to own. As you discovered, it can be incredibly profitable, it can reduce landowner headaches, and there is a huge opportunity to apply it in today’s market, but you’ve got to do it carefully with the right legal be used to help make sure you have all of the details tied up .

Thanks so much for watching. If you’ve got any questions, please applied them down below here. I try to engrave time out of my schedule to reaction the remarks and queries. Thanks so much better for watching. I’ll see you on the next video.

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Paying off Bank Investment Loans

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Does it make sense seeking to obtain paying down your mortgages faster on rental property through perhaps refinancing in from a 30 year to a 15 year mortgage? For that matter, if you have financing of the wherewithal, does it make sense to merely compensate money for rental property as opposed to get a lend? We’re going to cover all of those questions in great detail. I’m going to make it as simple as I can for you and I’m perhaps going to share with you a got a couple of tips-off you’ve never heard before.

The Concept of Arbitrage

Don’t get scared about the word arbitrage .You do it every day perhaps. For precedent, if you hire someone to clear your home or to mow your lawn, generally you’re doing that because you’re paying them 10 to 15 dollars an hour. In your ordinary responsibility you might make 30 to 50 dollars an hour, thus it is makes a whole lot of gumption to have them do the exercise, because you can move more money per hour doing what you work better a opposed to what the hell is do best.
That’s arbitrage, but what here we’re going to talk about is financial arbitrage, the relevant recommendations that you have been able throw more interest on your money when you vested than the prevailing interest rates for you to borrow money. Tell me certify you what that looks like.

Paying Cash For a House

I know you may not be able to do that, but it reaches such discussions easy-going for illustration purposes. Okay, so we’ve got a house and it’s going to be 300 thousand dollars. What I’m going to use for this example is a 10 detonator. I’ll elucidate what a detonator frequency is in a moment. This is going to have a 10 detonator frequency. Meaning, if you paid 300 thousand all money for this house, you could get a 10% return on your investment after all expenditures. After administering, upkeep, after taxes, everything, you would bring in 10% or 300 thousand dollars a year. That would be your proceed. Meanwhile, you have been able borrow the money at 5 %. That’s the interest rate on the loan.

I ask you this issue:

If you can bring in 10% and it expenditures you 5 %, does that move financial gumption?

The answer is yes. You don’t have to have a degree in calculus or advanced maths to see this. You can get a positive 5% arbitrage play here. You’re get 10% from the investment and you’re paying 5% in the form of interest. Makes sense? This is the concept and this is why it can move so much better gumption to have a bank loan when you have a rental property, long term investment property. I’m not talking about flip-flop real quickly. I’m talking about long term. You may have heard me talking here detonator frequency before.

Cap frequency

You’re going to have what’s called the NOI. That’s is your net operating income and that’s going to be partitioned whatever the buy fee is.

NOI: That is your absolute income cash flow after you’ve paid. It’s going to be your income minus your taxation and your guarantee and your maintenance and your management and all the other expenditures that go into owning a piece of real estate, but it doesn’t include the cost of the mortgage because that’s not what we’re talking about here. We’re talking about if you paid money for it, what would be all of the income minus all the expenditures? That’s where you get this NOI figure .

What a detonator frequency numeral terminates up examines a lot like is it’s a chapter zero something or a chapter 1 something. A chapter 10 is a 10 detonator. It’s a percentage number, it’s what it is.

In this particular precedent, in order for us to get a 10 detonator on this deal, what would have to happen is this. Of direction, the buy fee is 300 thousand, but I would have to have an income after all expenditures, a yearly income of 300 thousand. That’s how I get to my 10 detonator. Fiscal arbitrage is just the beginning of the benefits of bank loans against rental real estate. The next one is what I’m going to call higher, use that as a arrow, cash-on-cash return.

All right, so we’ll “il be going back” to our precedent and that is 300 thousand. A 20% down payment on that would be 60 thousand. That’s our 20% down. For envisaging in terms of cash-on-cash proceed, that would be this amount of money. . How promptly does this am coming? Now, we know from our precedent that we had 30 K coming in per year, but now that we have a lend in place of 240, that’s going to change our total amount of revenues” re coming back here “. I did a quick-witted analysis on Zillow mortgage calculator on a 5% interest rate lend. That’s about 20 thousand a year goes to our” indebtednes work .” Out of this, what we be brought to an end get is 10 thousand.

That’s our actual cash flow. Our cash-on-cash proceed is 10 into 60, but that is still a lot better than our original. Remember we had our 10 detonator? If we had a 10 detonator, if this is higher, if 10 into 60 are smaller than 10%, which it is, that is necessary that our cash-on-cash proceed is less than the detonator frequency. That symbolizes it reaches gumption, if you have a bank loan, you’re not putting so much better money into the property, so you’re getting a faster cash-on-cash proceed. That’s not the full amounts of the proceed because recollect, out of this 20 thousand, some of that’s going to principle. If I’m moving too fast, you’re going to have to watch this again because I’m going to keep flying.

Bank Loan Benefits

Buy More

One of the things I altogether love about bank loans is that it allows you to buy more real estate with your money. You can buy more. Now, that also symbolizes, because that’s pretty obvious, you can buy more, this is critical, depreciation.

Depreciation is something that exists in the United States and it’s for tax purposes. It allows you to pay reductions in income taxes because it’s an expenditure. Although it’s not really operating expenditures out of your bank account, it’s just operating expenditures for tax purposes. For single clas residences regardless, it is 27 and a half experiences. What you do is you do what’s called the cost basis, which is going to be the cost to purchase the property minus the property rate, because property doesn’t depreciate based on the IRS blueprints, and so you have expenditure basis divided by the 27 and a half years.

If we go back to this example, let’s say that the continued relevance of the property was the 60 thousand, so actually we had a cost basis of 240 and then that was divided by the 27 and a half experiences. Round figures, this is 8700. Okay, so that is necessary that of the 10 thousand, this is considered an expenditure, so you’re only paying taxes on 1700 horses a year, but” youre in” 10 thousand.

Well, it’s a little bit more than that because some of this is going toward principle, but merely attesting you for simple-minded illustration purposes. By apply a bank loan, you’re not only playing the arbitrage performance and you get a higher cash-on-cash proceed, and clear you can buy more real estate because you’re not putting so much better cash in, but you also get the influence of depreciation, whereas let me install you this.

If you paid money for the property, privilege, and you had this 8700, is still what your depreciation sum is, but you’re bringing in your 30 thousand. You see how now you’re paying tariff on what amounts to 21 thousand and 700? You’re paying more in taxes. How is that possible? It’s because depreciation is based on the cost basis, so the more you pay for a property, the more your depreciation going to get. That’s what bank loans allow you to do. Powerful stuff, isn’t it? Ah, but with much affect comes often responsibility and there are some obstacles of bank loans. The first is going to be a personal ensure. If you’re are working with residential real estate that is 4 forces and below.

Drawbacks of Bank Loans

Personal Guarantee

Without objection personal assures are pretty much required if you’re going to get good interest rates. Personal guarantee, firstly great problem. That symbolizes if something is wrong with you and the lend doesn’t get paid back, well, you are personally liable and you have to pay for it. This is pretty much obvious, but I’m just going to moment it out regardless and that is the ability to get a lend, right? You may have a difficulty get a lend wholly because there are certain requirements for get a lend, so there’s a drawback, right?

Mortgage Length

Alongside the ability to get a loan is something even more important and the hell is lend points. You’re going to have to get low-toned interest rate, but this is another big-hearted one. It’s not just the interest rate. It’s going to be this amortization length. Oh, big-hearted expression. Amortization is typically 30 experiences or 15.

If you’re dealing with a commercial-grade real estate you have been able almost never get 30 experiences. It’s usually 15 or 20 or 25. If you have to go with a 15 year, but that’s what the lender is expecting “youve got to” do, that could really hurt your overall profitability and the plans you have in place, because the 15 year made so much better money toward paying it off. We’re going back to the subject because it’s a good idea to pay it off, right?

Fixed Rate Length

Amortization length is important. Then fixed rate distance. Oh, this is big. If you’re from the United States, “youre supposed to” don’t know that in Canada they don’t have 30 year fixed rate lends. They have 30 year amortized lends, but then after five years the lend goes into adjustable and they have to recast the lend or refinance the loan.

Most commercial-grade lenders are the same mode. They may do a 15 year or a 20 year amortized lend, but it’s not stay around fixed for 20 experiences. It’s going to stay fixed for perhaps five years and then it’s going to go back to whatever the prevalent interest rates are at that time five years from now. That’s a big deal and that’s a huge drawback. When you’re planning all of this nonsense out it might make sense for those first five years, but then all of a sudden after five years you don’t know what’s going to happen with the interest rates. Drawbacks there. That’s why it’s so exciting in the United States, with residential real estate, when you can get a 30 year fixed rate lend. That’s incredible because that’s fixed for 30 years.

Lack of Anonymity

30 years from now perhaps your rental speeds are going to be higher, perhaps, and perhaps there’s going to have been inflation on the dollar or whatever the money is that you’re are working with. What happens is, it’s so nice when you have been able lock it in for 30 experiences, but that’s really rare outside of the United States. All right, so that’s a big drawback. This is a huge drawback for me and for others and that is, I’m going to call it lack of obscurity. Anonymity, when you get a lend, specifically when you’re talking about residential lends, they implore you as the person to be the buyer, so it’s going to show you as the owner on register now.

You could try to transfer that into an LLC after you shut, but then you would be contravening the deed of confidence or mortgage due on sell rider. You might can get away with it, but there’s the problem there it also shuns your name policy and it’s still on public registers that at some chapter you two are the owner. There’s not much obscurity when you’re getting the bank loan. If you are high profile or you don’t want people to know what various kinds of assets you have and everything in between, “its exactly” trouble with get a bank loan.

My 2 Commandments of Bank Loan:

  • Number 1: 30% in equity. I know most banks are simply going to require 20% down for many of your investment lends. I’m not saying you merely made 20% down .
    • What I’m saying is, you work 20% down, but you also buy it 10% below price. That’s where you get your 30% equity. Always have some room in the deal .
    • Why? Because if opportunities go wrong and you need to sell that investment property promptly, you have been able discontinue the fee low-toned sufficient to get rid of it quickly and still make a got a couple of horses and flatly pay off that lend .
    • Have equity in the property. Don’t be doing 100% financing where you have absolutely no equity in the deal, that’s all lend. That will put in a potential oblige .

 

  • Number 2: You Requirement Accumulations . I have in here four months of indebtednes work payments, 4 mortgage payments worth of stockpiles at the least. Have some money saved up.
    • In illustration something is wrong with you you have the ability to move those mortgage payments while you define the problem, whether it’s a renter that moves out, whether you have some trouble with the actual property or anything in between .
    • Have equity, have stockpiles and now you have the ability to take full advantage of the implications of bank loans, so that you can benefit from it and not put yourself into a potential financial oblige because you are using the implications of leveraging .

Benefits to Owning a Rental Property All Cash

Anonymity When you Buy

When you two are buy the property, if you offset all money you can buy it in LLC, you can buy it in a cartel. You can buy it in a manner that is where basically no one even knows you bought it, so this is huge for those that don’t want anyone to know what various kinds of assets they’re really dealing with. I may know someone personally like that.

Well, also, what if you’re in a situation where perhaps you’ve just gone through a divorce and you’ve run into some money and you don’t want the ex-spouse to know about that and take you back to the court and change the whole rules on the alimony and child survival? That might be good for anonymity. Perhaps you’re a drug dealer or this kind of reason. Not that I’m establishing that various kinds of economic behaviour, but if you want to have anonymity, you can do that with all money earns. That’s a benefit.

No Interest

You’re not paying bank pastime, but as we are talking about just a moment ago, that’s not a bad reason so long as your detonator frequency got a lot higher than your interest rate, right? On the other side of the copper, if it’s about the same or it’s just slightly different, then maybe there is a benefit to go with no pastime, because if you can’t get any more money on your money than the prevailing interest rates, there was a duration when interest rates were doubled toes; then it reaches gumption to merely offset it off. Does that make sense?

Myths Surrounding Owning Rental Property Without a Bank Loan

Here’s the big one: That you own the property.

If you don’t offset your property taxation and you own the property free and clear, what happens? The government takes your property. Tell me ask you this. If it’s in an HOA, or a homeowners association, or a condo association and you own the property free and clear and you don’t pay their legislation, what happens? That’s right. They take your property. Another, to a smaller segment. If you own a property free and clear, and you get insurance. That ensure recurrences. Is there anybody that even to specify that your ensure lapsed? Not always. It’s happened to me before. It sucks. Your ensure relapses and all of a sudden you own a home free and clear and you don’t have any property ensure on it. The hypothesi that you own the property, that’s a myth. The government own property, the HOA owns the property long before you do, so don’t get was of the view that somehow because you own it free and clear you own the property. That’s not true.You’re still hiring the property from a higher authority.

Loan VS Pay Off/ Cash

If you’re following the instructions, you’re predominating the arbitrage performance and if the interest rate is fixed or at the least fixed for a long period of time , no question, lend will always win.

Now, on the other side of the copper, if the detonator frequency is actually high, 15, 20%, and that’s more than you are able endow your money anywhere else in the market, it is capable of make sense to salary it off even if you’re predominating the arbitrage performance because there’s no other region to put your money to get that high of a return on investment.

Or if you can’t get a fixed rate lend for any distance of period and meantime you also want to own that property forever, for generations and generations; you buy some palace in France and you wish to own it forever; well, perhaps you do need to pay money because that mode at the least there’s one less reason you have to worry about. You merely have to worry about taxes. You don’t have to worry about erecting sure the interest rates don’t go crazy and awry.

Also, if you need obscurity, we’ve talked about that. If you need obscurity you have to pay money upfront to get that obscurity, but either way what you see here is paying off reaches gumption when the detonator rate’s huge.

Creative Financing

If you don’t ever want to have to worry about that fixed rate ever being an issue perhaps five years down the road, if you’re in Canada or you’re are working with a commercial-grade property, if you need obscurity refund money. If you’re like me, you like to have your cake and eat it too, so what is the best of both natures? What’s the best of a bank loan and best available of all money? Imaginative financing. You suspected it. What I specialize in.

With ingenious financing, whether it be Subject 2, or owning financing. You can get the obscurity. You can buy the property in whatever entity, LLC trust you want to buy it in.

You wouldn’t have a personal ensure on this and the majority of cases with proprietor financing you’d formation it so your entity has the guarantee , not you personally, so you shun those problems, but you get the benefits of having a bank loan. If” youve been” wishes to take it to the next level with real estate investing, detect how to use ingenious financing and then you get the best of both natures. You get the best of bank loans and you get the best of money. You get it both without all of the hassles and headaches, but you got to know how to find the treats, how to formation the deals.

How To Grow a Little Into A Lot Part 2.

That’s probably best available video I have of all of them on the subject of ingenious financing and how to formation these opportunities. All privilege. Well, I hope you learned some brand-new opportunities here. If you’ve got questions and opportunities that you want to share with me, made them in specific comments down below. To understand better what we’re doing, intelligence over to freedommentor.com. Subscribe to YouTube channel if you want to get access to these videos before anybody else. Also, grab my 2 volumes if you haven’t already, How To Be A Real Estate Investor and Real Estate Investing Gone Bad .

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How Wealthy Individuals Handle Monetary Loss

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Sample Story: (1:09)

I bought a home and hired a contractor to rehab it in order to resell.
I put the utility bill in my name and soon received the bill
The water bill was $2000 for one month
$1000 for consumption
$1000 for sewage

What did I do?

Find out the situation:

  • I had my contractor look for a leak but he could not find one
  • I then had my plumber take a look and he could not find one either
  • Upon checking the meter, the plumber informed me it was not a mistake.
  • There must have been a leak that the contractor had fixed when renovating

Poor Individual Attitude :

  • Blame everyone else
  • The utility company is a scam, or there must be some sort of mistake.

Wealthy Individual Attitude :

  • takes the blame, learns a lesson, and pays up
  • Wealthy folks define monetary losses as lessons
  • The greater the loss the greater the lesson

Tip: (8:25)

  • Keep a list of all of your financial mistakes/lessons
  • Occasionally go over this list
  • This will help you not make the same mistakes, which will save you money
  • If you utilize the things you learn then you can always make more money

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Estimating Rehab Costs

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Do not use a Rehab App Calculator

IMAGINATION (0:50)

  • To some people things might need to be replaced, but using imagination you can often repurpose or just clean something up.

Determine your route (1:25)

  • What is the general plan of action?
    • Buy, total rehab, then sell?
    • Prehab: clean it up and flip it to a beginner or investor
    • Fix it up to rent it out

Neighborhood: (1:45)

  • The condition of the neighborhood will decide the quality of materials you will need
  • Nice areas will involve more expensive materials

Labor Costs: (2:04)

  • Cost does not always equal quality
  • Often you can find great contractors at great prices
  • Determine what HAS to be done

What to bring with to the initial walkthrough: (2:42)

  • Tape measure
  • Notepad and pencil or note app on phone
  • Contractors can give a more accurate estimate when they have the square footage

Write Down Problems:

  • Look for evident signs of distress
  • Wet spots
  • Carpet replacement?

What You Plan on Doing with The Home Determines What Needs to Be Done (5:52)

  • If you want to buy, flip, sell then you typically need to make more cosmetic changes
  • If you want to buy to rent out, not all changes or updates will be critical.

The Kitchen

  • Buyers tend to be pickier about the kitchen, so spending money here is well worth it
  • Cabinet condition.
  • Appliances
  • Stains under the sink indicate plumbing issues.
  • Flooring

Quick Tip:

Negitation Strategy: Without having to overly point out every single problem you see, you can take notes instead. This will let a buyer know you see problems without you having to rag on and on about the house.

 

Tip For Quick Offers:

  • Measure the rehab costs by $5,000s
  • Hardly any work: $5,000
  • Minor Cosmetic Work: $10,000
  • Overestimating is a positive for you
  • Underestimating is ok! Once a property is under contract, if your contractor lets you know the estimate is too low you can bring this up during due diligence.

More Tips for the Inside of the Home:

  • A bedroom is not officially a bedroom unless it has a closet
  • You can add a closet to an office space to make it into a bedroom.
  • Look for signs of leaks
  • Check the water heater.
  • Check and see how old the breaker box looks

Tips for the Outside of the Home: (20:10)

  • Take note of any obvious problems
  • Paint
  • Landscaping
  • Water Damage
  • Evidence of termites
  • Yard Space
  • AC unit condition
  • Does it work?
  • Note any model numbers or service stickers

Conclusion:

  • Collect as many notes as possible during your first walkthrough
  • Photos or detailed notes will help you remember
  • Go over all your notes to determine whether to make an offer or not
  • Factor in what you plan on doing with the home

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Real Estate Surfing Analogy

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Starting Out

  • Can be a genuine obstacle for surfers.
  • Starting out is getting beyond the break
  • This is also an obstacle in real estate
  • You must know so many small things before you can successfully obtain your first deal/surf that first wave

Placement

  • You must place yourself in the right position to catch the wave
  • Being too far back will cause you to miss the wave
  • If you position yourself too far forward, you can end up flipping
  • Placement is also imperative in real estate investing
  • You need to be in control
  • You need to be the person in direct contact with the seller/buyer
  • No real estate agent or wholesaler standing in your way

Timing

  • Having the right placement is great but you also need to have accurate timing
  • Larger waves will necessitate faster paddling to be able to catch them in time
  • In real estate investing timing is also vital
  • If a home is in foreclosure and days from being put up for auction, this is bad timing because there is no enough time to complete a deal.
  • If a home is on the MLS list, this is bad timing for purchasing.
  • If a home comes off the MLS list you can reevaluate the deal

Selection

  • You must choose the correct wave/the right deal
  • Some waves/deals can be very hazardous
  • Sometimes with selection, you may have all of the other steps in line, but the deal will just not make you any money
  • This happens with waves, not every wave is a good one to try to ride.

Balance

  • In surfing this is literal, if you do not keep your balance you will never ride a wave
  • Even when all other steps are in line, you still must manage the deal smartly all the way through in order to close in order to be successful.

So you might wonder, how do you get to the point where you are productively riding waves/acquiring deals?

  • Eventually, through trial and error and experience, most people can learn to surf/close a deal
  • There is also an easier, faster, and less painful way!

Get a Mentor!

  • Someone to teach you the tricks and shortcuts, without having to make a bunch of mistakes on your own
  • Someone who has learned all of these lessons the hard way, and can teach you, so that you do not have to

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Easy Trick to Selling Your Home Fast

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What is this easy trick?

VIDEO

A VIDEO of the home. I am aware at how easy this trick sounds, more like common sense. A virtual tour is a collection of photos that move slowly from one to the next or a live video of a walkthrough of the house with background music or commentary. This video accompanies a public listing and can be utilized by homeowners trying to sell and real estate investors/agents.

When video first came out it was called picture shows. It was basically a sequence of photos, played out very fast to create a story. That is exactly what can be done to create a virtual video tour, as well as live video feed touring the home. These days it is very easy to make a virtual tour with use of a camera phone or simple camera.

Tips:

  • Hold the camera horizontally, grasping it in one hand while using the other hand to click the play button.
  • This helps you maintain control of the camera
  • Having control of the camera is vital to not developing a shaky video that will give viewers a migraine
  • Use long and relaxed movements to create a smooth view
  • Because cell phone videos often take up a lot of memory, you might have to put together a few videos to get the whole tour

Editing

  • If you own a MAC you can use IMOVIE
  • There is also Camtasia which is a video developing software
  • There is a free trial available for 30 days for homeowners only selling their personal home.
  • The other option is to take multiple photos and put them together as a slideshow

Post the video

  • It is super simple to put a video on a video server that can be viewed from cellphones and computers
  • I suggest either Youtube or Vimeo
  • Name the video the address of the home so if it is searched for, the video will pop up in the search results.

Benefits of a Virtual Video Tour:

  • You can sell the greatest highlights of a home to anyone that is a possible buyer
  • A real estate agent selling the property to a buyer, often does not know about, or mention all of the greatest features. A video allows you to familiarize potential buyers with these features.
  • When they see the actual home, these features you have pointed out will pop out more.
  • So a video link will become your sales pitch of the best parts of the home

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Creative Real Estate vs Traditional Investing

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Are you made for creative real estate or are you meant for a more traditional path? I will introduce you to the variances, the good and bad sides of both methods and which path is best for you.

To begin let’s take a look at both types individually:

In traditional real estate, an investor…

◾Purchases venture properties on the MLS.
◾Discovers deals by way of a real estate agent.
◾Purchases foreclosures that are recorded on the MLS.
◾Purchases foreclosures at the foreclosure public sale.
◾Purchases homes from venders.
◾Takes part in bid wars with other purchasers.
◾Uses large earnest cash checks to acquire contracts on properties.
◾Supplies large down payments.
◾Applies for investor bank loans.
◾Places a lot of bids and gets a limited amount accepted.
◾Frequently looks at deals, on the internet and in person.
◾Discusses deals centered on value.

In creative real estate, an investor…

◾Discovers deals by marketing towards driven sellers.
◾Catches the deals before others are aware of them.
◾Partakes in pint-size or no rivalry.
◾Deals with sellers directly minus agent involvement.
◾Typically puts up very slight earnest money
◾Hardly ever requires down payments.
◾Doesn‘t complete loan submissions.
◾Purchases homes with owner funding.
◾Takes over standing mortgages
◾Provides numerous bids on the same home.
◾Constructs bidding combats when selling their deals.
◾Produces money with every lead by passing on the bad ones to agents.
◾Practices transactional funding, hard and reserved funds.
◾Seldom looks at houses except to get it under contract.
◾Discusses deals centered on terms, value or both.

Mutually they both have obstacles to face; creative real estate requires significant education whereas traditional real estate requires money and/or the ability to borrow money.

The largest trial to creative real estate is obtaining the knowledge. First, you have to gain admittance to the proper training. Naturally, you get what you pay for so characteristically there is a fee accompanied with obtaining the accurate education. Next, having the correct mentor or instructor to aid you in your journey is vital to obtaining the best training. Third, you must make time and take the action necessary to really learn from what you are being taught. This is where many individuals fail. They want the amazing outcomes creative real estate can offer them but they aren’t willing to follow through with securing the instruction (even when they have purchased the right supplies and are learning from the right mentor).

An additional significant fact about creative real estate is that having a small amount of cash can be stretched pretty far. This might sound like confusing data since a creative investor can frequently buy real estate devoid of cash or credit, but there are expenses accompanied with starting and running a small business. When I started out, I ended up homeless. Life in such monetary dismal stretches made everything tougher. I couldn’t receive faxes because I didn’t have a fax line. I couldn’t do extended drives because I didn’t have cash for gas. I couldn’t acquire driven seller’s calls because I couldn’t put any funds into marketing. Without doubt the sum of money required to positively liftoff a creative real estate career is not even close to the amount a down payment requires on one single traditional investing deal, but it is useful for you to realize that having some funds to invest in your new creative real estate business can make a huge difference. In fact, for those who are in the monetary state I was in when I first began (poor), I highly advise those individuals put creative real estate on the backburner until you can raise a little cash and get back in the game. Or else, it will feel like trying to walk down the road in a storm. As an alternative, patiently wait until the storm has passed before beginning your journey.

The chief trial to traditional real estate is receiving access to the funds; funds for earnest money checks, funds for down payments, receiving loans from banks, and sometimes the funds to pay for repairs on properties you have bought. While it is conceivable to get access to funds through private persons, most use the funds they have gathered over their lifespan, such as a sequestration fund or the selling of a business or an inheritance, alongside using their good credit and sturdy monetary situation to obtain bank loans. Though there is some instruction necessary to become active in traditional investing, the traditional method is quite easy; employ a real estate agent to locate possible deals, offer a lot of low offers, get one accepted, purchase the property, renovate it, & resell it or rent it out. Then, do it again. Creative real estate isn’t nearly as easy and has a lot of diverse sides so the knowledge needed is considerably more intricate.

Which one is best?

In complete transparency, I am a little partial to creative real estate because when I started out, I was poor so the choice was made for me, and I had to go the creative path. So I am a creative guy from the beginning. But the traditional method is great as well. For instance, the traditional way permits an investor to purchase a lot of houses quite hastily. A very new drift in the market consist of Wall Street (huge hedge funds and private equity firms) purchasing single household homes at a rather fast speed. They are purchasing foreclosures in masses as well as listed houses. As today is the picture-perfect period to be buying real estate (most specialists agree that we have reached the lowest point), for those establishments that have a large sum of money, taking the traditional path lets them purchase thousands of houses very fast.

In addition, when you choose the traditional path, you can purchase property as an extended span prosperity constructing commitment at a lower amount than the creative methods of owner financing or subject to. The cause of this is that usually, a seller will either trade in favorable terms for a higher sales price or the seller will take a lesser amount in exchange for receipt of cash speedily.

Likewise, with complete auctions, there are instances where a traditional investor can get a marvelous deal by being the highest bidder when there is little competition at auction.

Creative real estate has its individual set of rewards too. Most prominently, you can acquire a ton of wealth and size a prosperity with a small amount of cash and/or no credit. But also useful is that creative real estate is steady whereas traditional investing decreases and increases with the fluctuations in the marketplace. When the market is thriving, there are fewer traditional deals. When the market is dejected, there are lots of traditional deals. With the creative method, the basis of deals is this client called a motivated seller. A motivated seller is created by palliative situations that are usually outside of real estate; life trials such as divorce, sickness, monetary difficulties, death, occupation transfer, downscaling, upgrading, and so forth. These are things that people will be going through in good times and bad forever.

Also worthy of note is competition. There is very little competition in the creative real estate realm unlike the traditional arena. Interestingly enough, traditional investor competition benefits creative investors because they can sell their deals to the traditional investors. For example, while traditional investors are panicking that the sky is falling because Wall Street has entered the game, creative real estate investors benefit from the hedge funds getting in the market because they can flip their deals to them. (Now if all the traditional investors figured out how the creative investors were doing what they were doing, then those creative ones would be in trouble!)

Paradoxically, now that I am in a monetary situation to be a traditional investor, I still favor investing in real estate creatively. I would rather pay a little more for an extended period property than put my name on a mortgage. Andrew Carnegie said in his book written over a century ago, “You should never personally guarantee a business loan.” I think of a mortgage on an investment property as a business loan so following Carnegie’s rule, I evade receiving bank loans for the properties I buy. As you can learn from my blog on Flipping Houses, I would rather wholesale than renovate and resell.

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Selecting a Real Estate Investing Mentor

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# 1 –Creative or Traditional Real Estate Investing?

If you are unsure of the differences, please read the blog: “Creative Real Estate or Traditional Investing“. Choosing which kind of investing you want to participate in is vital because it will regulate which kind of real estate investing mentor is exact for you.

Traditional = Local

If you want to be a traditional investor, a resident real estate investing mentor is most likely your perfect fit. The finest traditional investors are those that are talented at repeatedly locating very low-priced, yet dependable contractors. They are able to move in on good deals immediately (because most traditional deals need prompt action or someone else will get the deal.) They know their local area to a t, the best locations, worst locations, which areas are thriving. Prosperous traditional investors discover resident drifts and fine-tune accordingly. Traditional investing is very localized so the perfect real estate mentor would be a local one.

Oftentimes, a very respectable “investor-friendly” real estate agent can be an amazing traditional real estate investing mentor. They can help you get acquainted with mortgage dealers, title firms, workers and lots of other team members that will be essential to your traditional investing victory.

Creative = Nationwide

If you are looking to become a creative real estate investor, you might be shocked to read that a national real estate investing mentor might be your perfect match. Creative investing methods and formulations have a habit of working for every area because they are grounded on the idea of driven sellers and motivated sellers are not place specific; they are all over. Folks who need to sell their home speedily are forced to do so for motives that usually have nothing to do with their location, such as divorce, monetary difficulties, bereavement, loan glitches, etc. So a very prosperous creative investor can essentially move to a completely different region and be just as prosperous. Surely there are local laws and features that service one creative method over another, but typically, prosperous creative investing is not founded on your resident familiarity.

Since creative investing entails substantial imagination, seeing how things are done all over the nation and what diverse investors are doing all over the US, nurtures more concepts and ideas on ways to creatively invest. Plus, now and then creative investing needs very specific team members and if you are only looking locally for those people, you are restraining yourself. Some of the finest loan agents for no title seasoning loans and title companies for back to back closings we use deliver services countrywide. While if I was only able to use local title firms or loan agents, I couldn’t get the deal closed.

Most prominently still, the amount of driven sellers eager to sell their home creatively is restricted centered on the magnitude of the market. The saying that, “there are plenty of deals to go around for everyone,” is nonsense when it comes to creative investing. The more genuine creative investing rivalry there is in a certain region, the tougher it can be to locate driven sellers. Typically, the top creative investors in a resident region evade from sharing their top secrets to evade opposition. For myself, even though I mentor investors all over the United States, Canada and the Caribbean, I won’t mentor someone in my home base because I don’t want to generate a direct contestant.

What many resident “mentors” will do is pretend they are going to aid a fresh investor, but they merely teach the newbie just enough so that they can find deals for themselves. Here’s why. All creative investors are constantly searching for new driven seller tipoffs as cheap as possible. Some lead producing methods entail time and drive, such as exploring areas watching for available homes or FSBO signs. In the meantime the mentor doesn’t have the time to search himself so instead of hiring someone, they get a local rookie to do all the driving around for them in exchange for “their personal knowledge and know-how advice.” This is something I did when I was first starting out. It was a giant waste of time because I wasn’t paid for the leads I found, in fact the guy stole my portion of a deal we had made “together” and even stole $150,000 from a personal acquaintance. My “mentor” was a completely immoral criminal. He had no intent of coaching me on anything important except for how drive around and run errands for him for free.

Well, I did learn one valuable lesson, the signs to look for when being taken advantage of by someone! But even though my familiarity is a tad extreme, local “mentors” are infamous for teaching people for their own selfish reasoning not to help others become prosperous, self-governing investors. The truth is driven sellers are a restricted supply and rivalry is not supportive to present, prosperous creative investors.

Consequently, your best option if you are interested in becoming a creative investor, is a nationwide real estate investing mentor. They will teach you their secret knowledge of the business because they don’t have to be worried about rivalries and they can provide supplementary ideas, methods and team members due to their abundant geographic viewpoint.

# 2 – Is the Real Estate Investing Mentor Zealous About Coaching AND Prosperous at Investing?

Being a prosperous investor and being a worthy real estate investing mentor are two very diverse things. Some individuals are great players but have a shortage of the determination and tolerance required to teach others. I have a acquaintance who is a very prosperous investor and negotiator who declines to mentor folks any longer because she got so upset by pupils not listening to her advices. She was without the stamina to deal with the circumstances when no matter what you advise, sometimes pupils have to acquire their teachings the tough way. And more, she wasn’t zealous about coaching. She saw it as a decent secondary business to make a little extra income amidst deal closings.

If you desire to be a creative investor, you must be sure that the mentor is prosperous countrywide, not just locally. You want someone with a track record for mentoring students to success on a nationwide basis. But also there are individuals who are very zealous about coaching but are not the most prosperous investors. Just like the saying, “Those who can’t do, teach,” there are enthusiastic real estate investing teachers who aren’t prosperous investors themselves. They are possibly extra hazardous because they mentor well, but what they teach is incorrect.

Regrettably, the less skilled mentors are also typically the cheapest and since many up-and-coming real estate impresarios are on a skintight financial plan, at times they go with the bottommost priced choice. This is one area you don’t want to go cut-rate on because you can’t study how to be wealthy from a poor individual. If you select the right person, the cost of the mentor will be a step towards financial freedom. So evade going with the cheapest selection and be sure that the real estate investing mentor you pick is way more prosperous at investing than you are.

For those traditional investors considering a local real estate investing mentor, be mindful that you will have a far more inadequate group of potential prospects than the creative investors going for a nationwide mentor. Try to evade dropping your criteria just to get a local one. Be patient and determined. You might need to go further than your precise location but maybe you can find somebody that is provincially nearby. Or perhaps you can reach out to a national mentor and see if they know a mentor that is nearer to you geographically. But hang onto the idea that you need somebody who is zealous about coaching AND is prosperous at investing.

# 3 – What’s the Real Estate Investing Mentor’s Incentive to Assisting You?

This is a ENORMOUS error many, many individuals make when selecting a real estate investing mentor, They don’t consider the REAL incentive of why the mentor would assist you. The penalties can be momentous. You must have a flawless and accurate understanding as to why the mentor desires to assist you. Some novices idealistically assume they are going to discover a tremendously prosperous mentor who, out of the kindness of their heart, will lead them to success. But teaching someone real estate investing victory is a long, unending, enduring and tenacious course. The mentor must have considerable enthusiasm to work beside you; and the idea that they want to help simple because they like you is absolutely guileless. That is just not how things are in the real world.

Examples of the ACTUAL incentives of some real estate investing mentors:

• If you are traditional investor and you have an investor welcoming real estate agent coaching you, that agent’s REAL incentive is for you to purchase real estate. That’s how they make their money, when you buy. Sometimes the best choice of all is to not purchase the home, but if you don’t buy the home, your agent won’t get paid. When in hesitation, that agent is going to tell you to purchase because that is how they earn their paycheck.

• If you are traditional investor and you locate a mentor that says they will help you learn by doing a deal with you if you just bring the money, be careful! This is what got me in trouble when I was a rookie. My friend provided the funds, but since I was broke I brought my credit card which is chiefly the same thing. If a local mentor is really prosperous, they won’t need your cash or your credit to finance the loan.

• Whether creative or traditional, now and then a real estate investing mentor will charge you an opening fee to be your mentor. While this arrangement can work great, be mindful that in reality, the incentive they have to help you was delivered in full at the start of the liaison. What incentive will they have in the future to aid you if you get jammed? They have previously been rewarded all of their money and given all of their incentive. It would be like paying a contractor before they even picked up a hammer. Most individuals would never approve of these terms with a contractor. Instead, often people pay a contractor some money upfront for materials and to get the work underway, then typically compensation some headway checks as labor is completed, and then, they would wait to pay the final bill until the work was finished.

The greatest way to guarantee your mentor’s drive is allied with yours, is to line up your motivations with the mentor. Such as undertaking a profit allocation plan whereby when you make cash, the mentor makes cash. This way, when the mentor succeeds, you succeed and possibly just as significant, if a deal is deteriorating,, the mentor will miss out on those earnings just like you.

Furthermore, if you have previously funded real estate training amenities or are trying to make a choice right now on a mentor, reflect on how you discovered that individual or business. For instance, did you find them by investigating online, reading blogs or a book they wrote or by a recommendation from a reliable guide? Or did they discover you, as in visiting a local establishment in your area? In most circumstances, the greatest persons to work with are the ones that you discovered, not those that discover you.

With any luck now, you can make a much better educated choice when selecting a real estate investing mentor.

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1031 Exchange: Tax Free Real Estate Investing

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The 1031 Exchange is a segment of the United States tax code which defines how a real estate investor can purchase a slice of real estate for investment purposes and resell it after a few years without having to pay taxes on the profits made off the sale. Let’s say for example, you buy a home for 80,000 rent it out, but after two years you sell it for 100,000. So you have a profit margin of $20,000. There’s quite a few taxes that you will be required to pay on that profit like a capital gains tax, local taxes, and etc. If the reason you sold your rental property was purely to invest in a new property with a 1031 Exchange you can take your profit of $20,000 and use it to invest in the new property without paying taxes on it.

This only works with Rental Properties not Flipping Properties

Rules and Tips:

Net Selling Worth

If you purchased a property for $80,000 but are now selling it for $100,000 the new property you want to apply the profit towards must be at least $100,000. It can also be a few properties that equal to the amount of $100,000 or more.

Identify the Property
You have 45 days to find the property you want to purchase and then close the deal within 180 days. If you do not close within 180 days you will receive the property profits and be required to pay taxes on it.

Period of Ownership and Intent
The period of Ownership must be two years or more in order to be in “safe harbor”
Intent to rent out properties

Identical Tax Payer
You cannot buy and sell with investment companions. If you own the original home you are selling, you must be the name on the new investment deal as well.

The Process:

Old property is put under contract with a new buyer
The Intermediary is found and approves the HUD Closing statement
Profits go into an Escrow Account
You have 45 to find the new investment property
You have 180 days to close on said property
Money is put towards the closing of the property

Helpful Note:

If you buy a property with cash and put some rehab money into it, you can create a mortgage with yourself as the borrower in order to have the HUD show a $90,000 tag.

There is also what is called a Reverse 1031 for when you find a property you want to buy before you sell the current property you own. This is much more difficult to accomplish and involves you having the upfront cash or loan to purchase a property.

Benefits of 1031:

You can take a rental property that is not doing well and sell it without having the profits taxed, in order to put those profits fully towards a new investment.
A long term wealth building tool.

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Beneficial Elevator Pitch for Those in Real Estate Investing

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An Elevator Pitch is a short summary you give, when someone asks what line of work you are in.

3 Things to Keep in Mind

1) One course, one approach, one job title
Most Real estate investors do a few things:

  • Buy properties
  • Sell properties
  • Raise private funds for individuals
    You must decide on which route to go with. In real estate investing hardest part is locating good deals. Saying you buy and sell houses is a clear way to get across what you do for a living and make it easier for the person to identify you and your line of work.

2) Easy to comprehend
“I buy, rehab, and sell homes.” This is a simple notion to comprehend. When networking, people remember what someone does for a living when it is easy to understand.

3) Unassertive Response
If you are chatting to the overall community and somebody asks what your occupation is, “Respond in a simple and clear manner. Do not brag or claim to be a big shot. Every person you meet is a possible client or knows someone that could be a possible client. It is much more difficult to negotiate a good deal when people think you are rich and super successful..

Sample of a Beneficial Elevator Pitch

If someone asks you what line of work you are in, respond with something along these lines, “I am a real estate investor. I buy houses to rehab, and then resell for profit.”