Module 4 Mindmap to PDF Conversion

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1 1) Freedom Funding Class #4 a. Freedom Funding i. GOAL 1. Find 1 Great Deal a. SFF Funds 1 Great Transaction i. 1 reliable contractor / 1 reliable realtor 1. 1 Successful Flip a. Profit 30-50k b. Or More b. What was included in Freedom Funding training? i. 8 Live Classes ii. Unlimited Verifiable Proof of Funds Letters iii. Unlimited Lifetime Deal or No Deal Coaching 1. Submit deals and we will review them and tell you if we want to fund them 2. If we like them then it's probably a great deal iv. Unlimited Coaching Via the Forum v. Unlimited Phone Coaching via the Webinars vi. Lifetime Access to Everything: Members Site and Forum and Deal or No Deal Coaching vii. Retake the classes over and over as often as we offer them viii. Hammerpoint Rehab Evaluator Software ix. Done for You Private Capital Powerpoint presentation 1. So you can raise your own private money c. typical real estate investor i. goes and finds deals ii. tries to buy stuff iii. ends up wholesaling everything due to lack of funding iv. find the funding v. have your competition bring you all the deals vi. Make offers with confidence d. Freedom Funding Goal i. definite timeline 1. Get Funded Classses 1-3 a. Whats the desired outcome b. other people FUND your real estate deals with their money c. How to get all the funding you need for all the deals you want d. Learn the Freedom Funding Formula

2 i. Purchase + Repairs <= 65% of Realistic Salable After Repaired Value 1. Fixer Formula #1 a. ARV x's 65% = total investment i. CA/ HI / AZ / CHi / NYC ii. 70% of ARV = total investment b. $140,000 X's 65% = $91,000 i. SFF loan / partnership c. $159,900 - $82,000 (4k) - $86 i. Private Lender Loan ii. 86,000 iii. 66,000 iv. 1st mortgage v. 20,000 vi. 2nd mortgage vii. 4,000 viii. Acquisition fee ix. 82,000 x. 24,000 xi. repairs, insurance, maintenance, utitlies xii. 58,000 xiii. purchase e. Get transactional, rehab, rental and small commercial (Under $5M) f. After Class 3 - Take the Certification and pass with 70% and you get funded 2. Find Deals Classes 4-6 a. Find, Fund and Flip The best deals i. GOAL 1. Pro-Active Process 2) proactively obtain lists of people you may think are motivated to sell i. circumstances ii. Divorce iii. Bankruptcy iv. Foreclosure v. Inhertitance

3 vi. Loss of Job vii. Probate viii. Vacant ix. out of town owner x. out of town landlord b. 2 - Advertise to them c. 3 - Receive leads from advertising d. 4 - Qualify leads on phone e. 5 - look at house i. online ii. pictures iii. video iv. face to face f. 6 - make offer g. 7 - Arrange your financing i. Freeland Lending h. 8 - close 2. Passive Process a. ONLINE WEBSITES ii. Take a "MULTIPLE MEDIUM APPROACH" 1. There is NO ONE WAY TO GET DEALS 2. MAKE DEALS PURSUE YOU iii. Identify your sweet spot 1. SWEET SPOT DEFINED a. a house that needs repairs, looks tired, and possibly distressed b. Desirable part of town c. Great School Systems i. local magazine ii. rates cities iii. OXFORD PARK DRIVE iv. OLMSTED FALLS v. 77k vi. 55k vii. ARV 199,900 viii. 130k ALL IN d. Close to Good Jobs e. Near shopping and freeways

4 f. Re-sell DOM (days on market) less than 60 days i. Find out where are the shortest days on Market ii. realquest iii. $995 iv. Realtor / MLS v. FREE vi. Corelogic g. MOTIVATED SELLER h. Willing to take discount in turn for speed of closings and ease of transfer i. Could be a private sellers, bank owned or HUD j. pride of ownership by other homeowners k. price range almost anyone can afford l. good first time home buyer community m. AVERAGE AMERICANNA n. o Ask A Realtor to Pull from the MLS the Following a. Where are the most "CASH SALES"?? i. Great for Wholesaling b. Where are the most "TRANSFERS AND CLOSED SALES" by area code? c. What is the Average "DAYS ON MARKET"? d. What is the "AVERAGE SALE PRICE"? 3. You want the sweet spot where the most sales are happening with the shortest days on market 4. Cleveland MSA a. Near East Side i. RENTAL COMMUNITY ii. Point of sale inspections iii. building department b. South West / South East side

5 i. retail buyers c. West side i. retail buyers d. Purchase Price i. $80,000 and under e. After Repaired Values i. $120,000 to $175, middle class neighborhoods a. most options i. Rent ii. Sell iii. Rent to Own iv. TREASURE HUNTING 1. Online Resources a. i. FDMC b. i. FNMA c. i. HUD ii. Govt d. i. auction style e. i. auction style f. i. for rent section ii. VACANT iii. for sale section g. h. i. i. subscription fee j. House Buyer Network i. subscription fee 2. Offline Resources a. Drive for Dollars i. Look for VACANT HOUSES

6 ii. newspapers stacked up at front door or in the driveway iii. snow unplowed iv. grass the is uncut b. Calling "FSBO's" c. Real Estate Wholesalers i. Call every we buy houses ad / sign / website d. Referrals i. Referrals from attorneys, mortgage brokers, real estate agents and financial planners ii. Friends iii. Family iv. Construction Crews v. Previous Clients vi. Attorneys vii. Bankruptcy viii. Divorse ix. Real Estate x. General Practice v. Execute "DIRECT TO SELLER" Marketing Strategies 1. Direct mail a. List Buying i. Vacants ii. Out of Town Landlord /absentee owners iii. Probate iv. Inhertitance Lists v. Pre-Foreclosure vi. Past Due Property Taxes vii. Code Violations viii. city building code violations ix. Sources for Lists x. xi. $.08 Per Name xii. Commercial Acct xiii. discounts

7 xiv. xv. (leadpipes) xvi. monthly membership fee xvii. $99 / mo xviii. export as many lists as you want xix. find motivated sellers now xx. Kent Clotheir xxi. $1495 Fee xxii. One Time xxiii. Freedom Soft xxiv. Rob Swanson xxv. BEST LIST xxvi. Absentee Owner / High Equity / Vacant xxvii. LIST SIZE xxviii. PLAN ON BUYING 500-1,000 names and addresses b. Upload List to Google Docs i. Google Spreadsheet c. Yellow Letter i. ii. m iii. direct mail campaign thru iv. 5 step campaign over 5 months v. once per month vi. Avg Cost Per Letter = $1.00 d. Postcards i. click2mail.com ii. direct mail campaign thru iii. Avg Cost per Postcard = Approx $.50 cents e. Expectations i. 1-5% Response ii. 1,000 postcards = 50 responses

8 2. Door Hangers a. click2mail.com b. c. d. i for $99 bucks 3. Craigslist a. Rentals ARE ALL VACANT i. calling the vacant rentals 4. Bandit Signs a. b. WE BUY HOUSES c. CASH FAST d e. Put them out friday night f. take them down sunday night 5. T.V. / Radio 6. YELLOW PAGES a. Expensive b. Buy ad on the front cover or back cover of yellow pages c. $5, Internet a. Z Buyer b. HBN c. Squueze page campaign thru d. Traffic i. Craigslist Ads ii. Pay Per Click Ads e. Search "Houses for Sale in (FIB) f. we buy houses in (FIB) vi. Class #5 1. Skip Tracing a. transunion 2. ww.tlo.com a. $1 Per lead vii. CLASS #6

9 1. Inside Sales a. Manage and Process All Seller Leads (Lead Feeder) i. refer leads to mortgage company ii. refer leads to credit repair iii. refer leads/ appointments to realtors b. Inside Phone Sales & Book Outside Appts c. Property Evaluation i. REO: Research, Evaluation and Offers ii. MLS, Zillow, Homesteps, Homepath and other sites iii. HUD Bids: Research, Evaluation and Offers iv. daily bids on v. Short Sale: Research, Evaluation and Offers vi D.O.M. + over 100k vii. MLS viii. FSBO / OFF MARKET ix. working all the seller leads that come into the company from marketing manager x. Land Bank xi. Cuyahoga County "LAND BANK" 2. Outside Sales & Physical Property Appointments a. Door Knocking b. View and See All Properties c. Negotiate with purchase price with sellers and with listing agents 3. Contracts & Offers a. Write and make all offers b. Use the "fixer Formula"

10 i. Purchase + Repairs <= 65% Realistic Salable After Repaired Value c. Execute and Sign Contracts d. Collect Proper paperwork for each type of Transaction i. REO ii. HUD iii. Short Sale iv. FSBO / Off Market 4. Purchase Closing Coordination a. Property Due Diligence b. Order Title Work c. Title Company Coordination d. Coordinate Funding with "Owner" e. Coordinate "Hand Off" to Rehab Project Manager f. Coordinate "Hand Off" to Sales Manager / Agent AND / OR Loss Mitigation (for Short Sales) 2. Class 7: run the property launch formula 3. Class 8 a. Owner Financing and MMI Techniques b. Case Study - Greyhawk i. notes ii. mortgages / deed of trust iii. purchase iv. profit v. Purchase Price 1. $200,000 a. $160,000 Short Sale b. $25000 c. 3% buyers agent d. Closing Costs vi. County Taxes 1. $100,000 vii. Repairs 1. $100,000- $150,000

11 viii. All IN Number 1. $400,000 ix. Realistic Salable After Repaired Value 1. $1,000, nd Parcel next to the parcel that has building on it that ready for another build 3. Mcdonalds 4. dollar general x. 10,000 sq ft building 1. newly built xi. Rent Rates 1. $11 sq ft a. pizza shop b. hair stylist 2. $14 sq ft a. middle grade tenant 3. $18 sq ft a. hospital 4. 30% operating expenses xii. NET OPERATING INCOME 1. $140,000/ yr 2. 30% operating expenses 3. $100,000 xiii. LTV c. Privately funded loan / no financing contingency d. Homework before core class #5 i. what does the average property sell for in your "MSA" 1. Cleveland a. $135, Seattle a. $200, ii. buy a notebook so you can take notes and keep all the info and training in one location iii. save your user names and passowrd to the members site 1. iv. save your user name and password to the forum 1.

12 2. make your first forum post v. save the Customer Service Phone numbers and addresses 1. SREC a. b SFF/ FFC a. b vi. Print off your first proof of funds letter vii. find, locate and submit your first deal genie viii. visit the following webistes and look for deals in your area a. Realty Trac ix download 2. free