July 27, Tucson Real Estate Investor Networking Club. Make Money in Short, Medium and Long Term... AN AZREIA SUB-GROUP BY CRAIG BARTON

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1 July 27, 2016 Tucson Real Estate Investor Networking Club AN AZREIA SUB-GROUP Make Money in Short, Medium and Long Term... BY CRAIG BARTON

2 CRAIG BARTON Real Estate Investor * Manufactured Homes (land home packages) * 2007 First Wholesale deal and my first Flip * 2008 Educated on subject to, lease options, owner carry * flipped REO s took properties with owner carry * 2011 to present work all marketing strategies.

3 DEAL OR NO DEAL

4 What numbers do we need? Analyzing ARV- After Repair Value Repairs- How much work does the home need What is the price to rent ratio? What is the Days on Market? Offer Price- Will this home be short, medium or long term

5 Seller s Motivation 1. Cash (seller needs money now) Evaluating 2. Owner Carry (seller wants too much cash, willing to carry note) 3. Subject to A- Seller need debt relief (save credit) B- Seller willing to wait for equity/ get paid more then cash deal 4. Lease Option A- Seller not willing to release title B- Seller will wait for equity

6 ARV = $399,900 Repairs= $75, E Calle Portrero Tucson, AZ Price to rent ratio = $399k to $1800 Month Days on Market = 45 Offer Price =???????

7 Maximum Allowable Offer * Wholesale? * Pre-Hab? * Flip?

8 $80k rehab E Calle Portrero Tucson, AZ DEAL FULL REHAB (Why?) $399, Sale Price -$247,000 Cost -$1500 Closing Cost (buying) -$80, Rehab -$ % commissions Holding Cost 7 months 12% -$ closing cost (selling) -$00.00 Seller Concessions (we should not take concessions but may need to) -$ Flat rate listing -$ months utilities -$ Insurance -$ Taxes -$ BINSR -$ Termites Net Profit $30,043.00

9 ARV = $399,900 Repairs = $75,000 Cost to sell = $122,857 Break even = $277,043 Days on Market = 45 Wholesale Offer? Deal or No Deal? What s the Wholesale Offer?

10 ARV $159,900 Repairs $55,000 Price to rent Ratio $159,900 to $1050 DOM 20 days Offer Price =?????? 7371 N Patriot Dr Tucson, AZ Before

11 7371 N Patriot Dr Tucson, AZ Seller s Motivation Lives in Florida CASH

12 7371 N Patriot Dr Tucson, AZ $159, Sale Price Wholesale? -55, Rehab -$1100 Closing Cost Pre-Hab? (buying) -$ % commissions Holding Cost 5 months 15% Flip? -$ closing cost (selling) -$00.00 Seller Concessions (we should not take concessions but may need to) -$ Flat rate listing -$ months MAO - Maximum utilities -$ Allowable Offer Insurance -$ Taxes -$ DEAL or NO DEAL BINSR -$ Termites FULL REHAB (Why?) PRE HAB (Why?) -$72,407 = $87,493 Net Cost What s our offer?

13 7371 N Patriot Dr Tucson, AZ DECISION = PREHAB PURCHASE PRICE $72,000 REHAB $ SOLD (2 MONTHS) $108,000 (AUCTION.COM) 5% BUYERS PREMIUM

14 2736 S Calle Yucatan, Tucson, AZ ARV = $85,000 Repairs= $12,000 Price to rent ratio = $85,000 to $875 Month Days on Market = 50 Offer Price??????

15 2736 S Calle Yucatan, Tucson, AZ Seller s Motivation Debt Relief Owes $65,000 Payments $ Offer??????

16 2736 S Calle Yucatan, Tucson, AZ DEAL or NO DEAL (Why?) Wholesale? Pre-Hab? MAO Maximum Allowable Offer Flip? Subject to? Lease Option?

17 Subject To: * Seller s age * Seller s Plans (living arrangements) * What term can we set up (money for seller on the back end) * Social Security Number * Authorization of release (Mortgage Company) WHAT ELSE SHOULD WE KNOW?

18 $1500 to Realtor (pocket/expired) $1500 to Wholesaler $1000 to Seller $1000 to Seller in 144 months $65,000 took over loan $12,000 Repairs Total $ S Calle Yucatan, Tucson, AZ OFFER:

19 ARV = $325,000 Repairs= $0 Price to rent ratio = $325,000 to $1975 Month Days on Market = 200 Offer =??????? E Jarod James Pl, Tucson, AZ 85747

20 10329 E Jarod James Pl, Tucson, AZ CASH Seller s Motivation Lives in Virginia On the market for 300days Tired and willing to listen

21 What Offer? Lease Option: What else should we know? * Can we cash flow? * Seller s Plans? How long can he hold? * What can we do? Coinciding Lease Option

22 Offer: Deal or No Deal? E Jarod James Pl, Tucson, AZ Lease Option IN = 0 to Seller Lease Option OUT = $9000 down from buyer Sale price $319,000 = $310,000 to seller Monthly from Buyer $1975 Monthly to Mortgage $ ($ cash flow) Assign contract back to seller Profit $9000

23 * Wholesale * Pre-hab * Full rehab Flip * Rental * Lease Option * Subject To What is Your Strategy?

24 THANK YOU Motivation is what gets you started. Habit is what keeps you going. -- Jim Ryun

25 CRAIG BARTON BidOnHomeNow.com ASecureInvestor.com FlipWithCraig.com 1EZBuyer.com 1EZSeller.com Thank you

26 Copyright 2016 A Secure Investor. All Rights Reserved. BidOnHomeNow.com ASecureInvestor.com FlipWithCraig.com 1EZBuyer.com 1EZSeller.com Designed by: EstradasRM.com

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