The Next big real estate deal

I hear investors talk about different ways to make money in this market, and I get a lot great ideas from it.

One of my investors from the Chicago did a deal with a private equity firm to buy 50% of his already finished home. I know it doesn't sound like anything new but he did it and made $5k in the process. He still owns 50% of the property that will make him another $10K Approx when it sales. He is now buying another property with his extra money!

Making money in this market is not hard, in fact a down market is easier than a hot market. I remember when I had to put in 100's of offers to get 2-3 properties. Now we can get them 1 out of 4 times, big difference. The properties today are very affordable our average investment to buy and rehab a property is around $40,000. Wow a great home in a quality area for that low price!

Making big money in real estate is knowing your market and what you can max your money with in that market. For example we do a lot land contracts that help bad credit clients buy homes. The investor becomes the bank, and makes a great monthly income on that home. The buyer can write off the interest of the loan and get a totally rehabbed home in the process. The land contracts require a larger down payment from the buyer and when they refinance the home the investor makes great money!

As you can see there are many ways to get the next big deal, but you have to know all the rules in this market to max your investment and get the best cash flow and spread available! Brett Young WWW.Rooftopinvestment.com

Learning Real Estate (Land Contracts)

Safe Private Fianancing

Our company has developed into a great cash flow resource for many investors. The great thing about our system is that we never use banks. Banks today do not service investors, they have decided that owner occupied is about all their going to lend on.

We work with investors to convert their IRA's into cash machines by buying investment real estate.

Today I want to talk about private financing and how it can be done safely. Our company is offering a program that lets the investor borrow the purchase money from a private lender. The investor pays for the rehab and we get the home Land Contracted for the investor.

The purchase,rehab and management is also done by our licensed people. The LTV on this (Loan to value) is 20%-30% of the value and in a 1st lien position. The lenders rate of return is high 15%! The great news is the Investor still makes approx $350 per month net cash flow. That is a great investor and lender partnership.

You can do this type of lending through your IRA. There is another saftey net that really secures both the lender and the investor. The land contracts cash out about 50%-60% of the time. The ones that don't cash out usually stay in the home multiple years.

For those homes that may be a blessing in disguise. We never know the future but when the market turns and it will then the lender and investor will still be setting nice!
Brett Young www.RooftopCleveland.com

Land Contracts can make you money!

Dealing with Land Contracts can be very profitable. You do need to know a few things in order to make sure you are doing them right.

Land contracts is like a mortgage the owner of the property basically becomes the bank. The payments are usually higher than a traditional mortgage. For example I come up with my payments based on the rental rates in that area + $25.00. That number is not written in stone, but it's a great place to start.

The interest rate is not the issue with most land contract people, it's the payment. I was reading a book that was written buy a financial guru, and he stated that people would start looking for payments only not interest rate. I think that is true today.

Most Land Contract buyers are renters and are schooled on the going rental rates in the area. The great thing about the land contract deal is that the buyer can write off the interest on the property. Like a bank you are charging them an interest rate which by law is a tax write off. Always consult with your tax advisor on this.

The document should always be drawn up by a lawyer in the state you are doing these Land Contracts or what ever version is allowed where you live. They make everything legal.

Make sure that the payment is collected by a disinterested 3rd party to verify whether or not a payment has been made. I have a property mangament company pick mine up.

Base your Land Contract price on the values in your area. I always look at my spread and try to leave some equity on the table. This is great for a leverage tool when your trying to close the property.

Try to close within a 2-3 year period with a credit repair agency. Make sure that agency follows up and makes sure their credit is indeed getting repaired in a correct matter so you can close with them on time. It's always best to let the credit repair company do the loan also.

I had a client that was closing one of my deals once. He needed $2200 to close the deal. The property had considerable equity, and I didn't care if he closed it or not (leverage). He asked to borrow it. I said I would let him borrow it and I would charge him another $2200 for the trouble. That was a $2200 profit for using my money. He agreed and the deal was closed.

So when your carrying a contract on your property make sure you know the law, and the rental rates for that area. Then go make some money! Brett Young www.Rooftopinvestment.com

Getting the best out of your business

We have a gentleman that works with our company named Ed. My wife ran an ad about a year and a half ago to get an assistant to help with marketing. We hired him and he did a great job working on the marketing.

We later thought maybe we didn't need him so even though he was doing a great job. We left on good terms and that was that I thought.

That part of the business started to suffer under the new way we were doing it. In 60 days I hired Ed back. He immediately excepted and started producing the first week. That was almost a year ago, and he has really did a great job. In fact he is ready to take his real estate test so he can take a bigger role in our company. Tim is training him what to look for with investment homes.

He could of been bitter about being let go the first time but he was not. When I realized how much he fit a groove for our company I didn't hesitate hiring him back.

He now has a very bright future with us and is an up and coming force to be reckoned with. I will build some new systems that will Tailor to him and his great ability to get things done. Our property Manager (Meshow) is also using him to do things for him. He is training him how to handle prospective tenants.

Ed's business is starting to thrive because he never says no to new challenges and gets things done.

When you are looking at someone that is hungry to do business don't discount that they are not will versed in your field. You can teach them that. Look at their work ethic and see how they do. You may be surprised as I was with the end result.
I know our company was! Brett Young www.Rooftopprofitmax.com