3. • Curiosity
• Take action to start investing
• Build financial security
• Confidence in real estate investing
• Knowledge
Skyline Properties, Inc. Liberty Capital
4. • Information database
• Financial backing
• In-house rehab contracting services
• Property management services
Years of investing success & rehab experience
Skyline Properties, Inc. Liberty Capital
6. • UGLY homes are great!
• Think long-term
• Know your market
• Understand the risks
Skyline Properties, Inc. Liberty Capital
7. • Some of the best returns come in
moderate to average neighborhoods
• Don’t be afraid of a little work
• Know the area demographic
Skyline Properties, Inc. Liberty Capital
8. • NOT a “get-rich-quick” business
• Every deal is not a homerun
• Careful and Methodical wins the race
Skyline Properties, Inc. Liberty Capital
9. • Be cognizant of market trends
• Where are the first time Homebuyers
buying at
• Choose to invest in areas where the
median family income can buy
Skyline Properties, Inc. Liberty Capital
10. • The only guarantees in life are DEATH &
TAXES!
• Treat real estate investing like a
business
• Don’t let pride cloud your judgment
Skyline Properties, Inc. Liberty Capital
11. Pros:
• Quick in-and-out investment.
• Return on Investment of 30% or more (in 4 month or less
period).
• Easy to qualify for bridge loan to purchase at auction
15% down.
• Only 2% for hard money (as opposed to industry
standard of 5%).
Cons:
• Need larger margin than rentals and can sometimes be
difficult to win at auction due to competition.
Skyline Properties, Inc. Liberty Capital
12. • The rental market is hot right NOW! Take as much
advantage of it as possible.
• Less risk, with higher long-term returns
• You will cashflow now, gaining monthly income (with up to
10 homes, $3,500 to $6,000+ per month)
• Hands off- Passive income (Property management takes
care of all tenant needs and hassles)
• You will build equity into the homes
• Future sale of homes will bring large payoff - much larger
than flipping now
Skyline Properties, Inc. Liberty Capital
13. • We can structure the deal so you can either:
a. Get your down payment back, or
b. Apply their down payment towards the fix up costs, so no
further money comes out of the buyer's pocket after
purchasing.
• You will win more bids and buy more homes, since we don't need as
large of a margin as flipping
• Tax benefits (Depreciation, interest write offs, etc)
• We've leased out over 100 homes in the last two years, so there is
100% confidence that any home a client buys will be rented out within
45 days after fix up is complete to get you into buying another one
and building a portfolio."
Skyline Properties, Inc. Liberty Capital
15. Pros:
• Great deals, sometimes 70% of retail price or less
• Hard money loans easy to get approved for (based on property
value)
• Immediate ownership after auction
Cons:
• Not always able to see inside of the home before purchasing
• Need 18% cash at time of purchase
• If owner, 21 days until possession. If tenant, 60-90 days until
possession or cash for keys
• No contingencies, once purchased it's yours!
Skyline Properties, Inc. Liberty Capital
16. Postponed
90 30 90
Days Days Days Sold to
Notice of Bank
Notice of Trustee’s
Default
Trustee Auction
Sale Deed
Sold to 3rd
Cancelled
Skyline Properties, Inc. Liberty Capital
17. 90 Days of missed Notice of
payments to your loan
servicer Default
While the homeowner must receive a “Notice of Default”, it is not
commonly recorded in Washington state, and therefore not
tracked in foreclosure radar. RCW 61.24.030
Skyline Properties, Inc. Liberty Capital
18. Trustee sets auction date.
Recorded at least 30 Days Notice of
after the Notice of Default. Trustee Sale
RCW 61.24.030(7)
Skyline Properties, Inc. Liberty Capital
19. Initial auction date. At least
90 days from the Notice of
Trustee Sale.
Auction
RCW 61.24.040(1)(a)
Skyline Properties, Inc. Liberty Capital
20. Sale occurs on Friday. Postponed
RCW 61.24.040(1)(a)
Sold to
Bank
Sale occurs on a Friday. Auction
RCW 61.24.040(5)
Sold to 3rd
Auction may be
postponed for 120 days. Cancelled
RCW 61.24.040(6)
Skyline Properties, Inc. Liberty Capital
21. Transfers property to
the highest bidder.
Possesion granted 20 Trustee’s Deed
days after the sale.
RCW 61.24.060(1)
No deficiency judgment.
RCW 61.24.100
Skyline Properties, Inc. Liberty Capital
23. Kent Duplex
Purchased for $105,000
Fix up $7,000
Monthly Payment (P.I.T.I.) $900
Rented for $1,700
Net Cashflow/ month $800/month, $10,200 per year
Equity $40,000
Skyline Properties, Inc. Liberty Capital
26. Everett Flip
Purchase Price $42,100
Fix Up $15,000
Sale Price $84,950
Net Profit $20,000
Skyline Properties, Inc. Liberty Capital
27. Preferred lending partner
In-house construction for rehab
Skyline Properties, Inc.
In-house professional leasing
and sales team Real Estate & Property Management
Professional property
management services
Skyline Properties, Inc. Liberty Capital
28. Through our preferred lender partner …
Your Real Estate Lending Partner
Skyline Properties, Inc. Liberty Capital
29. Because you need to pay at the time you purchase a
property at the Trustee sale, it is impossible to secure a
conventional loan.
Hard money financing, or “Bridge” loans make it possible
to secure auction properties for a short term.
Skyline Properties, Inc. Liberty Capital
30. Loan Requirements:
• 1st Lien Position
• LTV =<75% of Current Market Value
• Viable Exit Strategy in Place
Standard Loan Fees:
• 2-4% Origination Fee
• 10-12% Interest Rate
• $695.00 Administrative Fee
• Up to 12 months
Skyline Properties, Inc. Liberty Capital
34. Member Agreement signed
Filling out loan application
Approval for hard money if flipping
Approval for hard money AND
conventional loan if holding
Skyline Properties, Inc. Liberty Capital
We know that you are playing with our clients’ hard earned dollars. The best practice for repeat business and referrals … make your clients successful!
As you well know,a widely held belief that the three most important factors involved in real estate success are “Location, Location, Location.” Some real estate investing experts actually saythere’s MORE profit in less desirable locations.But even within a community there may be locations that are good to invest and other locations that are poor choices. Sometimes the difference is literally "on the other side of the RR tracks". So before buying rental properties you must know your local market.When you meet local investors one of the "tips" you might receive about buying real estate is where a hot area to invest in is. Often this is just speculators trying to drive the market because they invested in that area. Do your research and don't fall prey to this type of advice. Just like getting a hot stock tip can be misleading, so can a hot real estate tip.One of the first pieces of knowledge you should find out is about local demographic trends. Are there areas where the population is declining? Are certain areas known for drug traffic? Buying real estate for rental property investment in either of these areas is a bad idea. Some communities might have better schools which would appeal to first time home buyers. There are often racial trends as well. If your area has new immigrants, for example, find out where the first time home buyers are looking for homes. A Realtor or other investors in your local real estate investment club can help with much of this information. Local Realtor Associations can also provide information on which areas have increased real estate values.
Despite abundant advertisements, and late night infomercials claiming that real estate investing is an easy way to wealth, it is in fact a challenging business requiring expertise, planning and focus. In addition, because the business revolves around “people”, investors benefit in the long run by operating with integrity and by showing respect to associates and clients. Though it may be relatively simple to enjoy short-lived profits, developing a viable real estate investing business that can last for the long-term requires additional skill and effort.
Narrow your search to neighborhoods where first time home buyers might look. Don't buy the most expensive house in the neighborhood. Although the price per square foot for this expensive house is comparable to neighboring houses, the higher overall price kept buyers away. Invest in a home that a moderate income family should be able to purchase.Research local rents for single family houses. If your mortgage, taxes and insurance (PITI) is greater than the rental you will get, don't buy that property. Never count on appreciation to make your money when buying rental property. That is speculation - not real estate investment!First time homebuyers are probably going to be making less than $100k per year. Are you aware that banks won't allow buyers to use more than 30% of their income for PITI, so your payments should be less than $2500/month.
Those choosing to invest in the stock or futures markets are inundated with numerous warnings regarding the inherent risks involved in investing. Numerous agencies, such as the Commodity Futures Trading Commission, require disclaimers to warn potential market participants about the possibility of loss of capital. While much of this is legalese, it has made it clear to people that investing in the stock or futures markets is risky--meaning one can lose a lot of money. “Greenhorn” real estate investors, however, are more likely to be saturated with advertisements claiming just the opposite: that it is easy to make money in real estate. Prudent real estate investors understand the risks associated with the business--not only in terms of real estate deals, but also the legal implications --and adjust their businesses to reduce any risks.Real estate investing is complicated and requires a great deal of expertise to engage profitably in the business. Learning the business and the legal procedures is challenging to someone attempting to do things on their own. Effective real estate investors often attribute part of their success to others, whether a mentor, lawyer, accountant or supportive friend. Rather than risk time and money solving a difficult problem on their own, successful real estate investors know it is worth the additional costs (in terms of money and ego) to find help when they need it and embrace other peoples' expertise.
