Real Estate Investment Seminar

1. Building Wealth Through Real
Estate Investment
Yasmin Ansari

2. About Me
• Realtor & Investor (Own 54 Units)
• Two Masters in Science
• SFR (Short Sale & Foreclosure Resource)
• SRES (Senior Real Estate Specialist)
• Member of
– Local Investors Clubs
– National Association of Realtors
– Missouri & St Louis Association of Realtors
• VP & Board member at Campbell Montessori School

3. Why Real Estate
• Diversification
• Preferred tax treatment
• Leverage
• Cash flow
95,000,000
Renters in US
St Louis
Occupancy rate
95.3%

4. Different Kinds of Real Estate
Residential
• Quick to buy/sell
• Lower cashflow
Commercial
• Strong cash flow
• Higher capital needs

5. Financial Analysis
Property A (single-family)
Property B (12 units)
Purchase Price
$100,000
$500,000
Down payment (20%)
$20,000
$100,000
Loan Amount (80%)
$80,000
$400,000
Gross Operating Income
$10,000
$72 ,000 ($500 per unit)
Vacancy (10%)
($1,000)
($7,200)
Tax & Insurance
($2,250)
($11,250)
Expenses
($1,000)
($16,500)
Net Operating Income (NOI)
$5,750
$36,990
P&I
$4,581
$26,003
Cash On Cash
$1,169 (6%)
$10,987 (11%)

6. Total # of Units
Average Rent Per Unit
Target Purchase Price
Proposed Down payment
Total Closing cost
Total money needed at closing
Loan amount
GROSS OPERATING INCOME
VACANCY
EFFECTIVE GROSS INCOME
ANNUAL OPERATING EXPENSES
Property Taxes (estimated)
Insurance (estimated)
Electricity/Water/Trash
Repairs/Maintenance
Management fees
Other expense (Grounds, Cleaning, reserve etc)
Replacement reserve
ANNUAL OPERATING EXPENSES
NET OPERATING INCOME (NOI)
Yrly. P & I
CASH ON CASH
1.25%
1.00%
6%
8%
6%
2%
1%
Potential
12
$550
$500,000
($100,000)
($5,000)
($105,000)
$400,000
$72,000
10% vacancy
($7,200)
$64,800
20%
Actuals
12
$500
$500,000
($100,000)
($5,000)
($105,000)
$400,000
$79,200
5% vacancy
($3,960)
$75,240
($6,250)
($5,000)
($4,320)
($5,760)
($4,320)
($1,440)
($720)
($27,810)
$36,990
($26,003)
$10,987
11%
($6,250)
($5,000)
($4,752)
($6,336)
($4,752)
($1,584)
($792)
($29,466)
$45,774
($26,003)
$19,771
19%

7. Screening Tenants
• Tenant Screening Services
– Credit Check, Background Check, Employment Verification and Landlord
History
• Casenet Website: https://www.courts.mo.gov/casenet/base/welcome.do
• Always charge deposit
• Don’t get involved with tenants
• Don’t give your address or personal information
• Good LEASE

8. Flipping
• High Risk – High Reward
- Foreclosure & Short-sale
- Tax Sale
- Auctions
• Buy Cheap
- 60-70% of ARV (After Repair Value) – Repair
Determine purchase Price
ARV
Repairs
ARV - Repairs
Purchase Price (70%)
$100,000
$10,000
$90,000
$63,000
Potential Profit
Purchase Price
Repairs
Total Investment
Sale Price
Potential Profit
$63,000
$10,000
$73,000
$100,000
$27,000

9. Flipping
• Estimate Repair
• Finance the deal
• Cash
• Conventional loan
• Hard money Lenders
•DON’T Get Greedy

10. LLC - Limited Liability Company
• A LLC is a business structure that is similar to a corporation,
but less formal.
• Business owners form LLCs to protect themselves from being
personally liable for business debts and claims.
• “Article of Organization” with the Secretary of State Office
• Members Managed Vs. Manager Managed
• EIN (Employer Identification Number)
• Operating Agreement

11. Tips
• Join the local Investors Group
- Wealth Improvement Network
- St Louis Real Estate Investors
- Street
- St Louis Rehabbers Club
- Lifeonaire REIA Stl
- St Charles Real Estate Investors Association
• Free Magazine: MFE (Multifamily Executive)
• RICH DAD POOR DAD - By Robert Kiyosaki

12. Opportunities
4-Family Units in U-city
1bd/1bath
Asking price: $179,500
Gross Rent: $2040
Single Family in Creve Coeur
2bd/2bath
Asking Price: $165,000
Gross Rent: $950
8 Units in Maryland Heights
2bd/1bath
Asking Price: $450,000
Gross Rent: $4800

13. What are your goals?
• What is your ultimate goal?
 Looking for cash flow OR appreciation?
 Quit work and live on rental overage within 48 months?
 Build equity for children’s college in 10 years?
• How much time do you have to Invest in the project?
• What type of investment is right for you and best fits your
lifestyle?
• Do you have the disposable income, TIME and desire to spend
renovating or managing a project?

14. Questions??