All Forum Posts by: Jackie Lange

Let's run some real numbers for a wholesale deal vs a realtor commission on one deal.  

house is worth $150,000 but in terrible condition.  You can get it for $80,000.  You sell it to a rehabber for $85,000.  You make $5,000 in about a week.  

Same house that is sold through a listing for $85,000.  There is a 6% commission or $5,100 HOWEVER the listing agent gets half of that or $2,550.  So you, the selling agent, profit would be $2,550  But wait, your broker wants half of that so you'd only make $1,275

Let's see, $1,275 or $5,000.  Which one is more?  The wholesaler makes more

Do this 2 times a month, 24 deals a year, that's a $120,000 a year business. (before taxes)

Get in to higher end properties selling with a Highest Bidder Sale, you can make $100,000 PER DEAL or more without giving up half of your income to someone else.   99% of the Highest Bidder Sales I have done were people who had their house listed with a real estate agent for more than a year with no offers.  The real estate agent failed to perform.  But I solved the sellers problem and got paid very well for doing so. 

a friend sent this to me

Address: 2245 W. Thomas Rd, Phoenix, 85015

(unique property with ‘grandfathered’ multiple units on single unit property)

2 separately metered homes on a 5/10’s acre lot, with flood irrigation. 3rd unit can be finished out for about $7000 and rented. Current rents are $1500 & $800/month for the 2 homes. Lot can be subdivided.

WHOLESALE price: $250,000

Value: $330k-360k+ (opportunity to increase value through subdividing or zoning variance)

Recent Comp: 2722 N. 21st Ave 85009 $367,000

Questions? Call Debbie at 602-695-6321 or email [email protected]

Learn cutting edge creative real estate investing strategies at the annual Extreme Success Retreat in Panama January 20-22nd   The event will be at an all-inclusive TROPICAL resort next to the Pacific Ocean. Free booze and Free food. Topics will include

Internet Marketing - Reduce marketing expenses and Increase leads
Bigger profits using Options and Highest Bidder Sales
Master Leasing for Cash Flow without buying houses
Make 10 times more Cash Flow with Assisted Living Homes
Monetizing All Leads

I doubt that I can post a link to the event page her so contact me if you want more info.

This is what previous attendees had to say:

LEARN FROM SEASONED PROS

"Having been a new member and experiencing my first Cash Flow Depot conference, I was
completely taken back by the commradarie of the members. Some of the members knew
each other for more than 20yrs. To me, that's telling. In a sea of "wannabe" real estate guru's
it's refreshing to meet people whose genuine concern is for the preservation and teachings
of real estate fundamentals not many people know about or put into practice. These time
tested principals are, to some, considered an art form, to be honored and passed on to
the next generation. Not to be sold for mass consumption by some marketeer. So, if you
want to learn "how to" construct creative deals, that can help people better achieve their
financial goals. If you want to learn from seasoned pros (code for people who actually do
deals) then Cash Flow Depot is the place for you!"
Lee John Schneider

JACKIE IS ON THE CUTTING EDGE OF THE NEXT TRENDS IN REAL ESTATE

Jackie's Conference just ended in Panama and once again she is on the cutting edge of the
next trends in real estate. I have 40 years as a full time real estate investor with the best of
creative real estate education and this event was TOP DRAWER! Just one technique I
learned will increase the profit on a deal this month alone by at least $75,000!

Thanks again Jackie!
Brian Mann
New Jersey

TOP 5 CONVENTION EVENTS I HAVE EVER ATTENDED

Over the past 35 years as an entrepreneur, I have attended hundreds of conventions
and training programs, as well as thousands of networking events. I rank the 2015
Cash Flow Depot Convention amongst the Top 5 convention events I have ever attended.

Amongst our intimate group of 45 real estate investors, I had over 20 deep and thought-
provoking conversations. My new friends and colleagues were sincerely concerned about
my success in real estate. Even though I have eight years of experience in commercial
real estate investing, I am completely new to the residential area. I lost count of the
number of suggestions I received to avoid the pitfalls many new (and even experienced)
real estate investors make. And these suggestions came from everyone at the convention.

I found the in-depth presentations were presented by highly experienced investors –
colleagues who are sharing their hard earned wisdom from their profitable and
unprofitable investments. The significant Question & Answer periods throughout the
conference allowed me to benefit significantly from the concerns and opinions of the
other experienced (and a few inexperienced) investors in the room.

The add-on bonuses make a long list: discovering Panama – Wow! Clean, friendly,
beautiful , warm, sunny. Our hotel was a great value, and the food was excellent.
Jackie put together an awesome local seaside tour and a jungle field trip so we’d
get both a tangible taste of the local real estate market and the real Panama.

If you are serious about staying current and innovative in your real estate investing,
I can’t imagine why you would miss this retreat. I hope I see you at the next event.

Bill Coon, Austin, TX

REALIZE HOW PRODUCTIVE THE RETREAT WAS FOR ME
I’ve now been back from the CFD convention for a week and can collect my thoughts about the convention and the trip to Panama.
My best memory of the convention was on my last day in Boquete, sitting at a coffee shop, basking in the warm sun, jotting down my thoughts about the specific convention topics and how I would implement them when I returned home.

It was the first time in a very long time that I can remember just sitting and pondering how I will grow my business and utilize the new ideas I had learned. Before I had finished my excellent cafe con leche, I had several pages of notes, timelines, and specific plans for growth and implementation. My ride to the airport arrived, my visit to Panama was coming to an end, and I realized just how productive this retreat had been for me.
I’m hoping Jackie will consider continuing the long running tradition of holding a CFD retreat. The value of that time away from the office, the phones, the tenants and toilets, and even the family, cannot be measured in any simple terms. I thought this retreat was an excellent use of my time and resources, and I’ll look forward to continuing to cultivate the relationships and ideas that developed in Panama.

Many thanks to Jackie for sharing her time, resources, expertise and so much more. I know Jack Miller is smiling with delight at what Jackie has created for all the members of CashFlowDepot.com.

Best regards,
Deb K

HI Nathan

A good way to get started is wholesale flips.  You find old, rundown houses, get them under contract then sell your contract to a rehabber or do a simultaneous close with your buyer.  The great thing about wholesale flips is you don't need much money to get started.  You don't need to buy the house.  You don't need to get loans or fix up the house so you are not putting your family finances at risk.  Yet, you can make substantial profits really fast. This is the CHUNKS OF CASH side of the business

Once you get comfortable with that,it is a good idea to start acquiring rental properties. But you don't want to do it the traditional way which is saving up a big down payment then getting bank financing. That is totally unnecessary.  Instead, you should buy houses subject-to the existing mortgage or with seller financing. Believe me there are plenty of sellers out there who will do this. Even small multi-family properties can be bought with seller financing or subject-to the mortgage.

This is the CASH FLOW side of the business

You can also control rental properties with a master lease. You find owners who will lease their house to you with the right to sublease.  You make the difference between what you pay the owner and what you collect from your tenant. This can be structured in many ways - the risk free way is to only pay the owner a percentage of what you collect when you collect it.  I know a lot of people who have gone from $0 cash flow to $10,000 a month in cash flow with master leasing.

Put these all together to replace the income from your job fast!

Wholesaling is absolutely the best way to get started.  You'll make a lot more money than you could as a licensed real estate agent.

There are many ways to get leads for wholesale flip deals which do not require much marketing expense.    

All of Jack Miller's books, training videos and recordings are available at one website.  I can't mention the name of the site here or the post would be flagged.  But if you do a google search you should be able to find it.  Jack Miller's training is legendary and evergreen.   Jack was the most creative investor I have ever known. 

HI Eric

You might check out my comments in International investing too.

https://www.biggerpockets.com/forums/76/topics/252...

Sorry, I don't know of any books on the topic. Maybe that needs to be my next project.  I moved to Panama 6 years ago then just dove in.

I would be very cautious about investing in any area which you have not spent some time.  There's a sales person around every corner in Latin America and their sugar-coated pitches are not always trustworthy.

If you're thinking about Chile, spend a month there.  I've been all over Chile.  Talk to a lot of people.  Meet with a real estate attorney who YOU find, not one recommended by someone trying to sell you something.  Find out what your tax implications would be to Chile and what their rules are for foreigners owning real estate there. What are capital gains taxes?  Do they have estate taxes?  What's their tax on rental income?  See a lot of real estate in various areas.  Which areas seem hot? Which areas do not?  Find out what rents are for long term.  Is there a demand for vacation rentals?  Is financing available and if so  what are the terms?  

If you live in the United States, do you realize how long the flight is to Chile?  Is that going to be a factor?  Do you speak Spanish?

When you visit a country and talk to a lot of people, you will usually be able to get a general idea about what's needed and where.  

Best of Success.. and Freedom

Jackie

I live and invest in Panama.  There is a constant influx of retirees and people who are moving to Panama to start a business.  Anytime you are considering investing in an area you need to take a close look at the government and economic stability.  Panama is super strong in both counts with the highest GDP in the western hemisphere.    Direct foreign investment is growing every year.  Between last year and 2016, there is a 26% increase.  Smart money goes where the economy is strong, the government has very little debt ( currently 33%), and where foreigners have the same property rights as citizens.

Panama makes so much money from the Canal, the second largest Free Trade Zone in the world, the largest copper mine in the world, fruit exports, largest ship registry in the world, etc etc etc... that they do not need to tax their citizens on every little thing like they do in the USSA.  You can make a ton of money in rental and other business endeavors and not pay a penny in taxes.  Basically, you get to KEEP the money you make.  

If you live in Panama full time, like I do, then you can also take advantage of the Foreign Earned Income Exclusion where you can make about $105,000 in income and not pay a penny in taxes in the United States either.   

Yep, you can work less but make a lot more because you are not giving 1/2 your income to the government of any country.  A tax free life!

Another big plus about investing in Panama real estate are NO PROPERTY TAXES for many properties.  If the property was built before 2012, you have no property taxes for 20 years. If the property was built after 2012, the property tax structure changed to no taxes for the first 5-15 years depending on the price point.  But even when there are taxes, they are dirt cheap.

Property Insurance is another thing that is really affordable.  You'll pay about $90 per $100,000 per year!  

I recently purchased several acres and plan to build more rental houses.  It will cost me $35,000 to build a 1250sf two bedroom house turn key.   They will rent for $750 to $800 for long term tenants.   There is a big need for more rentals - both long term and vacation rentals.

In addition to the rental properties I own, and a small coffee farm, I do master leasing long term then sub-lease as a vacation rental.

Some other big pluses about Panama.  It has never had a hurricane and never will.. it's too far south.  No tornadoes.  No tsunamis.  Panama is 9 degrees north of the equator so it has perfect weather year round.  Near the beach areas it is 85-90.  In the mountains, where I live, it is spring like weather year round 70-80.  

Panama City is growing leaps and bounds with a constant need for more housing.  

There is SO much opportunity in Panama.

I also own a tour company in Panama catering to people who are planning to relocate to Panama.  My tour guests come from all over the world!  Some are retirees.  Many are looking for new business opportunities with less rules, regulations and taxes - Panama has exactly what they are looking for. 

It is easy to get a residency Visa in Panama and after 5 years you can apply for citizenship and get a Panamanian passport.   You don't have to get a residency Visa to invest in Panama.  

If you have any other questions about Panama, let me know. 

Jackie Lange

You can usually cut your costs in HALF if you close at an attorney office instead of a title/escrow company.  

UPDATE - that lead for Amarillo Texas was purchased today.  The seller was asking $45,000 for a $90,000 house.  It has a $10,000 mortgage.  Seller had already moved and was extremely motivated.  It was purchased $0 out of pocket and subject to the $10,000 mortgage.  If you don't ask, you don't get these kind of deals!

I just posted more leads on my facebook page for cashflowdepot