Presented by. Socorro Curiel Master Coach

Transcription

1 JumpStartREI.com presents Higher Profits - Lower Risks in Real Estate Investing Presented by Socorro Curiel Master Coach

2 Why are so many people INTRIGUED by Real Estate Investing? r

3 The Profits Performing Assets will Make you a lot of Money! Significant Tax Advantages can offset income taxes Financial Freedom can be achieved from passive income r

4 Why are so many people AFRAID of Real Estate Investing? r

5 The Risks Non-Performing Assets will always Lose Money Loss of Revenue and Increased Expenses will increase STRESS in your life Foreclosures & Bankruptcies will Ruin your Credit for many years r

6 Common Mistakes Having no plan to follow and following someone else s plan Not noticing or regarding the market conditions and/or indicators Making emotional decisions about locations or properties Buying with the Frenzy Not running the numbers before purchasing a

7 Most investors focus only on PROFITS and forget to manage their RISK c

8 Steps to Minimize Risks Step 1 Define your Financial Goal Step 2 Find your purpose for investing Step 3 Select your Investing Strategy Step 4 Establish your Investing Rules Step 5 Find a Market to Invest in Step 6 Select your Investing Team Step 7 Find your Investment Properties a

9 Step 1: Define your Financial Goal Monthly Cash Flow? or Capital Gains? WHAT do you WANT? c

10 Step 2: Find your purpose for investing WHY do you WANT this financial goal? r

11 What will keep you moving forward? The Carrot and The Stick r

12 Step 3: Select your Investing Strategy Residential Rentals Commercial Rentals Flipping Properties Wholesaling Lease-Options Rehabs/Fixer Uppers Foreclosures REOs Short Sales Are these truly investing strategies? xa

13 The 3 Components of a COMPLETE Investing Strategy Acquisition How will you acquire the property? Exit Strategy How will you make money? Team Who will support you and your strategy? c

14 Flipping Properties: Double Closing 2 Closings on the same day Seller $185,000 Value Closing #1 You contract for $150,000 and take title. (funding required) Profits: $30,000 Subject to Short-Term Capital Gains Tax Flippee You the Flipper c

15 Step 4: Establish your Investing Rules Passive or Active? Resources to be used? Solo or Partnerships? Price Range? Financing Options? Cash Limits? Location Limits? Property Management? Exit Strategies? c

16 The risk of losing money is increased when real estate purchases are made without regard to the investor s own fundamental rules for Real Estate Investing. - Socorro Curiel a

17 Step 5: Find a Market to Invest in BUY BACK AMERICA!!! r

18 Appreciation Seller s Market Demand > S Depreciation Flat Market Supply = D Real Estate Cycles How Property Prices Move Flat Market S = Demand Appreciation Buyer s Market Supply > D Depreciation c

19 The Foreclosure Process 1. Pre-Foreclosure begins with a Notice of Default (NOD) that is filed against the property a few months after non-payment begins. The Borrower s options are to pay the shortage and bring the loan current, refinance the loan, modify the loan, sell the property, short sell the property, or do nothing and allow the foreclosure process to continue. 2. A Notice of Trustee Sale is filed and widely advertised in the newspaper that the property is scheduled to be auctioned to the highest bidder. Bidding starts at the amount owed and title is transferred to the winning bidder. In a judicial foreclosure, the court grants the lender a Decree of Sale after a complaint is filed against the borrower. The property is sold to the highest bidder. If there is no bidder, the property becomes Real Estate Owned (REO) by the lender. Lender will either sell the property in bulk to investment groups or put it back on the open market with a realtor. 3. The Foreclosure process is completed with the property auction ar

20 Step 6: Select your Investing Team Property Team Business Team x

21 Step 7: Find your Investment Properties c

22 How much Due Diligence is enough? 1. Number Analysis 2. Verify Structure 3. Verify Performance ar

23 Do Your Due Diligence! Number Analysis Is there a high probability that by investing in this asset, you will meet your financial goal? Example: Cash Flow = Income PITI-MUMV Location Review Is there a high probability that this investment will perform as anticipated given its location? Recourse: Interview property managers in addition to realtors. Ask: Would you allow your mother to live there? Structure Inspection Is this structure in the same condition as presented to you? What repairs are needed to allow this investment to perform? Recourse: Dated photography The Goal: Maximize Profits and Minimize Risks x

24 Real Estate Investing success MUSTS: Basic REI Education Established REI Rules A Solid REI Plan Plenty of Discipline A Healthy Wealth Attitude r

25 What s Next for You? How to Invest in Real Estate A Step by Step Guide 100 Page Workbook.... $ 49 Online Course + MP3 Files.....$ 97 Two Group Coaching Sessions....$ 132 $278 Value c

26 Please visit us at: Presented by: Socorro Curiel