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Attracting Investor Clients 8 2 12
- 1. Attracting Investor Clients Presented by the Arizona Academy of Real Estate – 8/2/12 Instructor: Marty Boardman Twitter: @martyboardman LinkedIn: linkedin.com/in/MartyBoardman
- 2. Marty Boardman • Full-timereal estate investor since 2002 • Managed a $16 million portfolio of investment properties • Fix and Flip – Seller Financing Exit Strategies – 70 properties sold since July 2009 • Realtor since November 07’
- 5. BREAKING NEWS! Inventory Levelsat Record Lows Active Listing Count 13,440 Pending/AWC Listing Count 18,349 Active Listing Count (SF Detached) 10,613 Closed Sales (Last 30 Days) 6,336 Supply 2.1 months Arizona Regional Multiple Listing Service July 25th, 2012
- 6. BREAKING NEWS! Market Update: From Cromford Report: • Median sales price up 35.5% year over year • Average price per square foot down 3% in last 30 days • Normal sales 56% market share • REOs 14.2% market share • Short sales 29.7% market share *Michael Orr, Cromford Report – July 15th, 2012
- 7. Why Do InvestorsCare? “A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors.” - Warren Buffett
- 8. Attracting Investor Clients Wheredo I go to meet real estate investor clients?
- 9. Attracting Investor Clients •Who they are. • What they want. • What they need. • How they think. • Where they are.
- 10. Who is theInvestor? 1. Wholesalers 2. Fix and Flippers 3. Buy and Holders 4. Seller Financing
- 11. Wholesalers • Buy low, sell low • And/or assignees • Bird Dogs
- 12. Fix and Flippers 1.Buy low 2. Rehab 3. Market 4. Sell high
- 13. Buy and Holders • Cash Flow • Wealth accumulation • Inflation hedge
- 14. America is Becominga Nation of Renters “The steady rise in demand for rentals has tightened the supply of housing, helping push rents higher ... while the pace of new household formations has lagged historical averages, those new households are becoming renters.” - MSNBC.com, January 31st, 2012
- 15. Seller Financing 1. Lease/Options 2.“Subject To” Deals 3. Wraps 4. Carrybacks
- 16. Lease/Options 1. Non-refundable option deposit 2. Cash Flow 3. Sell high
- 17.
- 18. Managing Expectations 1. Whatkind of ROI are you looking for? 2. How much do you plan to invest? 3. How long can you keep your money invested?
- 19. Why Must YouKnow This?
- 20. Can you solvetheir problems? 1. Repairs and project management 2. Funding 3. Market analysis 4. Finding a deal
- 24. Repairs and ProjectManagement 1. Know what things cost and where to go to buy them. 2. Know how long it takes to get things done. 3. Get things done fast. 4. Get things done inexpensively.
- 26. Funding Hard SD IRA Money Partners
- 27. Hard Money • Property serves as collateral • 25-30% Down • 12-18% interest • 1-4 points • Personally guaranteed
- 28. Partners • LLC with operating agreement • Prom Note • Deed of Trust • Private Equity
- 29. Self Directed IRAs • $3.7 Trillion in IRAs • Anything allowed by law • Membership interest in an LLC • Prom Note • Grows tax free
- 30. Market Analysis -MLS • Pending sales • Traditional sales vs. REO/Short Sale • Days inventory • Price per sq/ft
- 31. Price Per SquareFoot • Normal $115.31 • Short Sale $73.87 • REO $72.36 *May 2012- The Cromford Report
- 32. Finding a GoodDeal • Be a bird dog 1. Direct Mail 2. Door Knocking 3. Radio Ads 4. Website/lead capture • Your Sales Proposition 1. No lock box or signs 2. No showings 3. Buyer ready
- 33. The Best ClientYou’ll Ever Have • 3 Bedroom, 2 bathroom, 2 car garage minimum • Tile roof/wood frame construction • $150,000 - $400,000 acquisition price • Valley wide
- 34. Marty’s Fast FlipFormula $150,000.00 retail price - 12,000.00 closing costs commissions - 15,000.00 profit - 12,000.00 repairs - 5,000.00 holding costs $106,000.00 offer
- 35. Will you listthis for me?
- 36. Just kidding…will youlist this for me?
- 37. Attracting Investor Clients 1.Leverage the success of your client. 2. Raise your own capital. 3. Build your own real estate investment business. 4. Attract other investor clients and/or partner with your client
- 38. “Are you gonna’pull those pistols or whistle Dixie?” - The Outlaw Josey Wales
- 40. 15622 W. CaribbeanLane Surprise, AZ (Greenway Parc) Purchased 4/11/12 – Sold 7/12/12
- 41. 15622 W. CaribbeanLane Surprise, AZ (Greenway Parc) Retail Sales Price $139,900.00 Acquisition Price 98,000.00 Commissions/Closing 11,000.00 Holding Costs 3,000.00 Repairs 12,000.00 Net Profit $15,900.00
- 42. Where do yougo to meet real estate investor clients? 1. Networking events 2. Real Estate investment classes 3. School/Church 4. Social Networking 5. Title Companies
- 45. Warren Buffett LunchAuction Raises $3.46 Million “An anonymous donor on June 8th paid $3.46 million to Glide, an antipoverty group in San Francisco, for the privilege of having lunch with Warren Buffett.” - Wall Street Journal, June 15th, 2012
- 46. Marty Boardman marty@risingsuncapitalgroup.com 602-319-5391 twitter.com/martyboardman linkedin.com/in/martyboardman