What type of real system do you have?

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Brett young
Owner/ CEO Roof Top Investment
Real Estate Investment

Being your own bank

I talked to a great friend of mine this week and he informed of another way to sell real estate, on a land contract.

As you probably know that banks just aren't lending. IN fact new Wells Fargo ad shows a family on a trip that can access there checking account to make sure they still have money I guess. What's missing is they don't even mention getting you a loan, because that's not want they want. They just want your deposits to loan to federal agencies that pays them a great return. That's how we finance this deficit, with taxes and banks.

So the land contract can be a great way for you to become the bank. With homes being $15k you can afford to do this. It's really a great time for you to create wealth!

Here is how it works, say you pay a total of $40,000 with rehab on a home. You advertise your home for sale and you will carry the note. Get a down payment from the new client, at least a down payment of $1500-$2000. Make sure that can also qualify for a mortgage in the future.

The payment should mirror the rents in the area or even a little more. For example say $900 is the rent then that should be your payment. So add up your taxes (monthly) and your insurance (monthly). Then after you add the total cost of those items then add the rest to make it up to at least the rent in the area. In this example it is $900.

Make the amortization table reflect the payment not including the taxes and insurance. This allows the buyer to take a tax deduction on the interest. Don't worry about the interest rate just make sure you have the right payment.

The price of the home should reflect the top of the market on that home. This example it would be $85,000-$90,000. So your selling price should reflect that minus the down payment.

After you have all that done then wait 3-4 months and sell your note. In this example you have $40,000 in the home. Advertise you'll pay 10% on the note for the life of the contract. The investor (note buyer)will get a first lien position at a 50% LTV (loan to Value). I don't think the banks are paying that great of an interest rate.

You'll still make a great profit on the monthly payment and you'll have a $45,000-$50,000 spread. You can now go out and buy more homes with your money, and increase your wealth every deal.

That example can be done a million different ways. Just make sure you get all the money you have in the home and make some profit on the back end of the deal. This will bring you a great income today and in the future.

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Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment

What type of investment system do you have?

I run into a lot of so called experts that make huge profit claims. In fact I spoke to one a few months ago that informed me that the client wasn't really going to do all that well on their real estate investments. They were fine with the clients making little to nothing and the so called expert was OK with that.

I was a little surprised and upset that someone in our field would say that. Experts are supposed to take care of all the investments that are purchased with their system.

Really a system shouldn't just cover the purchase of an investment property, but the length of time your client owns the property. That includes selling the property or renting it. I know I deal with my clients properties daily. Some have not purchased a new property for a few years. That doesn't matter to me, they will be taken care of through the life of their investment with my system.

I dealt with over 10 property management issues this week alone. One property had a tenant that had court problems and the section 8 contract was going to be terminated. We found out that the court did not take care of that paperwork and therefore we kept the tenant.

Another issue this week was the city wanted a driveway repaired or they were going to give my client a fine. Again that was immediately taken care of. We got a fix on that the driveway and it was the first time the investor had to put any money into the property in 2 years. Plus having our own private maintenance company saved him some big dough!

Another one needed an inspection through the city, and it passed with very minimum repairs after 1year. $300 to be exact. We lined up our people and took care of that inspection. Having your own private people allows quick response at very reasonable rates.

So make sure the so called experts have a system that will be backing you after your purchase. Make sure that when a problem arises they will be running for the hills. Please don't buy a system that is on a Cd course that only tells you information and doesn't have a place to actually help you get started.

Being successful in real estate investing is a lot easier with the right system.
Brett Young Valley Realty

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Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment

Raising money for your portfolio

This process will take you some time and money but could land you huge profits. When your raising money for anything make sure you talk to a lawyer before you start doing anything, You can get into some securities issues.

One way to do this is to get a partner. I would use an LLC (limited liabilty corp) to set this up. You can have you and your partner or partners on as members and it creates a great vehicle for you to go into partnership. I highly recommend a third party running all the money. Escrow companies are great for this.

If your going to raise money make sure you have a business plan. Not a do it yourself one but one drawn up by professionals. You can find some great companies that do this on the internet starting at $200 and it goes up from their. These types of plans make you look very professional and will open new doors for you.

Another way to raise money is simply advertise what your buying in the area your in. For example if your in Phoenix maybe craigslist,google,facebook,Lindkin and many more. Be very consistant when your doing this because it may take a while. I've had my company for 4 years and being very consistant on advertising is crucial.

You may also want to make yourself a website to do this. Again consult with an attorney and make sure your not breaking any security laws. This is a great way to advertise, just remember the website itself will need advertising in search engines,SEO and alot of other things. You can easily find someone to do this at Elance.com. It is a great resource for both websites and marketing your website.

Lastly I want to go over setting up a receptionist. You can get them online for as low as $50 a month. They take 100 calls for that price and they will email or text you your messages. Make sure they are professional and answer the phone. This is a great way to market and look professional expecially if your working a full time job.

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Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment

Todays Economy Creates Opportunity Podcast

Click here for Today's Economy Creates Opportunity

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Brett young
Owner/ CEO Roof Top Investment
Real Estate Investment

Dealing with details

I always like to talk about what I do as an investor and an investment consultant. This week I closed 4 deals. They were all a little different but I wanted to teach a few things I learned.

The first deal had a terrible closing company. They had mi spelled the investors name and had the wrong address's on all the documents. Thank god I previewed all the documents before they get to the client. I informed the closing company of the mistakes and after 3 re writes they finally had something we could sign.

The inspection had also been done and that needed addressed. There were 7 units involved in this deal. I had to work out all the repairs that the buyer wanted done and ask the seller to do them. We agreed on the items that would be fixed.

That deal was close to closing, and we needed to get the repairs done and inspected. The construction crew worked over time to finish that project. The inspection went great and we got the deal closed.

The next one was a duplex that was through the same closing company. Again it was a mess and I had to clean it up. There was a problem with the title on the 12th hour that needed to be corrected before we could close. That deal was done the next day, and we will be starting the rehab this week.

I purchased 2 homes myself and sold one. Those deals had to be closed and get the rehab going. The faster we get them done the more money our client make. So we started on those homes and they will be in budget. They will be done in the time we allotted, to ensure we can rent them quickly.

My wife and I also bought a home to move into in the Cleveland area. That was a whole other set of contracts and dealing with the bank on the paperwork.

Our property management got 3 units rented and we went over the ones that were coming up. Then a marketing plan was set up for all units that were coming open. We do $60,000 a month in gross rent. So keeping up with all the details is very important.

The last thing we had to do is market our business through websites and podcast. We also have to put out new ads weekly to keep everything fresh. We have to call our sources so we know what the new properties are coming on the market. This allows our clients to get the best properties available. Those all have to be uploaded and all numbers must be checked to make sure they meet our guidelines.

This is what it takes to make sure investors make money on each and every deal. This is a full time gig for anyone that is a serious investor. Investing in real estate is all I do, and having contracting, property managers in our company is a must for me and my clients to be completely successful in real estate investment. Brett Young Valley Realty

Todays Economy Creates Opportunity

There are many people that are very concerned with today's economy, and for good reason. We really don't know where we are heading. We can look at history though, and get a great idea where it will land.

This economy could be your way to financial freedom. Real estate is very inexpensive right now and people are wondering if it's going to get cheaper? Have you ever heard of people that say,"Wow, I wish I would've.... or, "If only I had....."?" Don't be one of them.

The homes I'm recommending in this economy cost less than a car in most cases, with cash flow that is unbelievable! I have a group of investors out of California that have recognized this. We are closing a deal next week ( 3 duplexes and a SFH) that will cash flow $3500 to $4,000 a month net, with a 25%-29% return on investment.

I own 28 similar properties myself that create a great cash flow. My company takes average people and helps them become successful in this economy. We can get excellent income properties in great neighborhoods that really produce big money.

Another client continues to net $600+ each month, and has done so for over a year on their SFH investment. The total repair cost during that time was less than $500 dollars. This home was purchased through our service in a another great neighborhood.

Yet another client bought 6 properties within a couple of months. He makes over $3600 per month in net cash flow. Wow, that money goes right back into his IRA with a much greater return than he would earn in the stock market. He also gets to control his assets and doesn't have anyone named Bernie running his portfolio.

Rooftop Profit Max has gross rental receipts of over $60,000 a month on the properties we manage for our investors. That is over $720,000 in rent per year. Plus these properties give our clients a massive amount of equity.

One other thing I want to mention on this economy... The Rockefeller's weren't scared of an economy like this. They purchased a lot of real estate and made their fortune. That fortune still exists today and they are growing that fortune now, in this economy.

You may be running for the hills, too scared to make a move. But remember, the richest people in this great country invested in real estate when everyone else sat on the sidelines. So, when you are looking at your situation, consider the great real estate opportunities this economy offers. You may not become another Rockefeller, but you can secure your own financial future by buying investment property today. Brett Young ~ Valley Realty