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Flipping Houses for Financial Freedom

The document provides an overview of real estate investing, highlighting the differences between active and passive investing strategies. It emphasizes the importance of setting personal goals, utilizing the Golden Formula for property offers, and understanding various investment methods such as wholesaling and flipping houses. Additionally, it outlines actionable steps for both active and passive investors to achieve financial freedom through real estate.

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hippiediva
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0% found this document useful (0 votes)
32 views14 pages

Flipping Houses for Financial Freedom

The document provides an overview of real estate investing, highlighting the differences between active and passive investing strategies. It emphasizes the importance of setting personal goals, utilizing the Golden Formula for property offers, and understanding various investment methods such as wholesaling and flipping houses. Additionally, it outlines actionable steps for both active and passive investors to achieve financial freedom through real estate.

Uploaded by

hippiediva
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Th e U l t i m a t e

POWER
PREP
P a c k et
Investing 101 THE BASICS
WHERE DO I EVEN START?
The answer depends on your unique goals.

If you're looking to replace your income and have more time than money to invest,
active investing is an excellent starting point.

But if you have more capital and limited time, passive investing may be the better
choice.

Ultimately, passive investing should be every real estate investor’s goal, as it’s the
key to achieving financial freedom.

Throughout this course, we'll work together to create a path tailored to your goals,
on a timeline that makes the most sense for you.

ACTIVE PASSIVE
INVESTING INVESTING
More hands-on real estate More hands-off real estate investing
investing strategies. Typically strategies allowing you more time
making you more money upfront. freedom while building wealth.
Ex: Flipping Houses Ex: Renting Out Properties

NON-MOTIVATED MOTIVATED
SELLERS SELLERS
People who are selling their People who are willing to sell for
homes but aren’t in a rush. They less than full price. For example,
will typically only sell for full price people going through a
or more. bankruptcy, or preforeclosure.

ON MARKET OFF MARKET


HOMES HOMES
On-market properties are the ones These homes are NOT listed online,
you see on Zillow, [Link], and and the owner typically wants to sell
they are listed at full price. quick.
The GoldenFormula
**THIS IS THE PERFECT TOOL TO ENSURE YOU DON’T
OVER PAY FOR A PROPERTY AND LOSE MONEY.**

70% OF THE ARV - (REPAIRS) = OFFER!


*ARV = After Repair Value (value of property after repairs)
You only have to ESTIMATE the repair cost.

Example: A property is worth $100,000 AFTER repairs.


$100,000 x .7 (70%) = $70,000
$70,000 - $10,000 (REPAIRS) = OFFER ($60,000)
So you would offer $60,000 as a wise investor.

HOW DO YOU FIND THE ARV AND ESTIMATED REPAIR COST?

RUNNING COMPS:
Running comps, or "comparable sales," is a real estate method to assess a
property's market value by analyzing sale prices of similar properties in the same
area, usually within the last six months. Key steps include:
Examining sale prices of comparable properties, often as price per square ft.
Assuming the target property will sell for a similar price per square foot.

We have a company that runs all our comps, and no license


is required. It’s called REI WORKS.
Enter the address, and it will generate all of the other
properties that have been sold in that neighborhood
The Quick Rehab Estimator tool allows you to plug in the
square footage of the house and what repairs are
needed to get a rough estimate so you can make
confident offers, quick!
USE OUR CODE: WITHOUTFEAR
AND GET $51 OFF YOUR MONTHLY SUBSCRIPTION
W h o l es a l i n gPLAYBOOK
WHAT IS WHOLESALING?
Wholesaling is an ACTIVE real estate investment strategy in which an
active investor, finds an off market property and gets it under contract
then assigns it to an end buyer.

WHO IS AN END BUYER?


Typically passive investors who would like to buy discounted properties
from active investors to acquire rentals. Active Investors can be their
own end buyer by using OPM

WHERE DO I GET THE MONEY? OPM - (OTHER PEOPLES MONEY)


We use private money lenders or hard money lenders
Asset Based loans (Loans based on the asset itself, not your ability to pay the loan
back!)
Provides the funds needed to purchase the home, cover all the rehab, and carrying
costs.

PRIVATE MONEY LENDER HARD MONEY LENDER


TERMS CAN BE NEGOTIATED SOME MONEY REQUIRED
UPFRONT
INDIVIDUALS WHO INSTITUTION MUCH
HAVE MONEY LIKE A BANK
ASSET BASED LOAN ASSET BASED LOAN

DID YOU KNOW...


YOU can be the end buyer and buy the
contracts from investors.
If you have more lucrative funds this
role may be better for you rather than
an active investor OR do both!
Active Investor

Motivated Seller End Buyer


5 THINGS TO KNOW BEFORE
FLIPPING A HOUSE:
1. Only flip properties using the golden formula. Don’t Forget!
2. Make your house look exactly like the comparable properties in the
area. Don’t over improve.
3. Do not do the work yourself! It will cost you more than it will save you.
4. Find 2-3 reliable contractors. Only pay for work that has already
been completed.
5. Find a mentor. They can help you walk through any issues that
might come up, saving you time, money, and energy.

PHOTOS COURTESY OF AUBREY, WREIN STUDENT

BEFORE AFTER

FLIPPING A HOUSE CHECKLIST

Find a motivated seller. FInd a private money lender,


and get a loan.
Reach out to that person and say you’re
Close on the house.
interested in their property.
Hire contractors to flip the
Meet with the seller to tour the house.
house.
Use the Golden Formula, and get the Sell the house, and pay back
house under contract. your loan at closing!
FROM PURCHASE TO PROFIT:
A HOME FLIPPER'S JOURNEY

FOUND A HOME! COMPARE PROPERTIES


You have found a house You compared your property
that you can potentially flip! to surrounding homes and
you know what to improve.

OFFER TIME! FIXER UPPER


You used the golden
Hire contractors to fix up the
formula, put an offer in and
house and only do what’s
you purchased the house
necessary.
using a private money loan!

LIST THAT PROPERTY FINAL STAGE


You finish repairs and list Your house sells! You pay off
the house for sale! your loan and make a profit!

THE AVERAGE MONEY MADE


ON A FLIP IS $65,000
BrrrrMETHOD

BUY REHAB RENT REFINANCE REPEAT

3 SIMPLE RULES BEFORE YOU BRRRR

1. 1%: The property must rent for 1% of the price you pay.
Ex: $100,000 home must rent for $1,000 or more.

2. Appreciation: Use DATA, not speculation.


Ex: Look at a heat map of your area and see how much
the value of the homes has gone up.

3. Time: Rentals Are A Long Term Investment:


Always allow yourself the luxury of time.
SHORT TERM RENTALS
Furnished home, apartment, cabin, cottage, RV or any residential property
that is rented for a short period of time as an alternative to hotels.

$300 to $350 = Minimum Nightly Rate


50% Minimum Occupancy Rate = 15 Nights a Month
SHORT ____________________________________
$300 a night x 15 nights = $4,500 a month MINIMUM
TERM $350 a night x 15 nights = $5,250 a month MINIMUM
RENTAL ____________________________________
RECORD MONTH $7,700 and $8,100 MONTH
PROFITS *Minus expenses*
Traditional rental rates are $1550 and $1750 respectfully
*Rental Arbitrage

TRADITIONAL- NOTHING SPECIAL


PRIVATE ROOM ONLY $50-$100
ENTIRE HOUSE $125-$300
TYPICAL
BOUTIQUE
PRICE $200-$500
PER NIGHT LUXURY
$500- $5,000

REMEMBER REVIEWS ARE EVERYTHING.


UPKEEP AND CLEANLINESS IS PERTINENT!

IMPORTANT NOTES:
ALWAYS CHECK THAT YOUR CITY HASN’T BANNED STR.
Location is key! Your STR should be within 20 minutes of anything of interest.
Ex: professional stadiums, bodies of water, etc.

SHORT TERM RENTAL CHECKLIST

Find a motivated seller OR buy a Find cleaners and a handyman.


wholesale contract.
Your property manager will list
Rehab the property. the property for you.

Furnish the property. Refinance the property.

Set up a property management Repeat!


system like Evolv.
STEP-BY-STEP SUCCESS:
THE PROCESS OF SHORT-TERM
RENTAL MANAGEMENT

FINDING THE RENTAL FIXER UPPER


Find a well-located property Hire contractors to fix up the
in a city that allows short- house and only do what’s
term rentals. necessary.

WHAT COLOR SHOULD WE


HANDS OFF!
PAINT THIS WALL...
Decorate and furnish the Hire a reputable property
property to look unique and management company like
inviting. Evolv.

TEAM WORK MAKES


AND NOW WE WAIT...
THE DREAM WORK
Sit back while you are
Recruit your dream team of
bringing in active and
reliable cleaners and
passive income each
handymen.
month.
5 STREAMS
OF PASSIVE INCOME
1. MONTHLY CASH FLOW

The income you have after you collect rent and


pay out all expenses.

2. LOAN PAYDOWN

The process of reducing the amount owed on a


loan over time by making payments toward debt.

3. TAX BENEFITS
Ability to deduct expenses like property tax,
insurance, mortgage interest, management fees,
and repairs.

4. EQUITY GRAB
The difference between the current value of the
property and the money you owe on the
property.

5. APPRECIATION

The increase of a property’s value over time.


YOUR ACTIONABLE
RETIREMENT PLAN WITH

R e a l E s t at e !
DID YOU KNOW...
The average woman thinks she only needs $500k to retire.

WHOLESALING
5 Year Retirement Plan
Wholesale average profit = $10,000
6 Wholesales Per Year x 5 Yrs = $300,000
12 Wholesales Per Year x 5 Yrs = $600,000

FLIPPING HOUSES

5 Year Retirement Plan


Flipping Houses average profit = $50,000
2 Flips Per Year x 5 Yrs = $500,000
6 Flips Per Year x 5 Yrs = $1,500,000

WHOLESALING + FLIPPING

5 Year Retirement Plan


Wholesaling + Flipping
6 Wholesales + 2 Flips Per Year x 5 Yrs = $800,000
12 Wholesales + 3 Flips Per Year x 5 Yrs = $1,350,000

THIS IS LIFE CHANGING!!


YOUR ACTIVE
INVESTING Check List

Learn the golden formula


and how to run comps.
Market to motivated or distressed
sellers

Decide which houses you want


to flip and which to wholesale.

Network with Passive Investors to


find end buyers to wholesale to
and private money lenders to
fund the houses you’ll flip.
Determine your goals of what
“SUCCESS” means to you
Create an action plan to
achieve your goals in the time
frame you desire
Fund your lifestyle so that you
can begin Passive Investing
to achieve financial freedom!
YOUR PASSIVE
INVESTING Check List

Learn the golden formula and


how to run comps.

Network with Active Investors

Analyze deals from Active


Investors

Decide your criteria for lending


money if you are a private
money lender.
If you plan to BRRRR, create your
ideal criteria of which houses you
want to BRRRR
Partner with an Active Investor to
lend money to or buy properties
from
Sit back and let your money
work for you while you achieve
true financial freedom!
Thank You!
Over 220k Women
Have attended our
MasterClass.
If they could do it...
SO CAN YOU!
Please Follow us:
@womensrein

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