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

Real Estate Investors

Real estate investors are a different breed. How do I know this? I am one. You are always looking for the next great real estate deal that comes up. You never ever get tired of looking at investment properties in fact I've looked at 1000's of them and still looking.

You get up every morning thinking of new ways to find and buy investment real estate. While your drinking your coffee your on the computer checking comps in the areas your looking in trying to see if any great deals are their. Writing a lot of contracts until you get that great deal! Working with the Banks and agents to making sure it closes on time and on price!

You go to all types of different real estate seminar courses and spend $1000's of dollars to get the information you need to get the best deals. You learn all the legal and construction pitfalls and money saving ideas. What the you need to know to get great buys for yourself.

You have to go to each property and make a budget and be sure that with rehab everything will be in budget and get the end result that you want for that property.

You have to hire a construction crew that will get each project done correctly and permitted with each city. They must also get them done on time, and in budget. You must also know what permits and rehab is really needed in each investment property.

You learn the rental laws and have proper property management that keeps your properties rented and cash flowing every month. You also have a great maintenance team that doesn't cost a fortune every time something goes array.

You have or have someone that has a real estate license to help you find investment real estate. You have all that paperwork that must be done at escrow so you know you have a safe investment.

You even have to make sure all the utilities are turned on!

There is another great choice that can take care of all this for you and save you thousands of dollars, Answer: www.Rooftopinvestment.com. We do this stuff for our investors everyday! Better get investing!

Listening is a great thing for your business

I learn a lot every week just from listening to people and my Itunes. Yesterday Roger came up from Cincinnati to look at some homes. We went to several cities and browsed some very nice investment homes. He let me know what homes he liked and what areas he preferred. After we had finished he gave me the green light to be his representative for buying investment homes. As I listened I learned what his goals and his expectations of me were going to be. I was able to satisfy his needs by knowing them.

I also met another gentleman yesterday on another business opportunity that he wanted me to represent his company in. As he was explaining the biz to me he mentioned another type of business he had done. I stopped him and ask him about it. He immediately pulled out some financials on that business (which was struggling) and I noticed the huge profit potential in the market for that business ! We immediately changed courses and set up a plan to upstart that very profitable business. If I had not been listening I would of never heard about the new business.

Listening to business podcast can teach a lot of rich information. One in particular that I listen to is HBR(Harvard Business Review) they interview a lot of the CEO's of large business and they give you tons of FREE advice. For example I am listening to the CEO of eBay and what his thoughts are on all the eBay business's. They own many differant types of business's. It is a treasure trove of information from someone who is at the top of the business game and it's free! I mean who wouldn't listen to the CEO of eBay?

Their are many othey podcast I like on marketing and business. All you have to do is go to itunes and download them an listen! Rooftopprofitmax also has a great podcast on itunes.

Listening to people and podcast can take you and your business to the next level! So why aren't you listening? Brett Young www.advancedcashflowsystems.com

Buying Real Estate the smart way!