All Forum Posts by: John Jack R.

@Colleen F.  The purpose of insurance is to avoid financial financial catastrophe. So whatever happens to your property including a complete burn down would represent financial financial catastrophe to you? Yes or no.

@Zachary Beach triple net lease purchase to own combination. What is commonly referred to as rent to own. Collect a big down payment 10 to 15% of the agreed-upon price. A rent to own contract which is similar to triple net lease were after X number of payments they on the property. So it’s really a rental contract and if they default do you still have the rights to a victim etc. if they fulfill their obligation there on the property you sign the title over once they make the last payment.  I would use a third-party independent servicing to collect the monthly payment and remit directly to you this way you have an independent third-party collecting the money and remitting and tracking. I’m sure there will be a number of Independent mortgage servicing companies that would take this type of work on.

Oh my gosh I need to do a much better job of proofreading! :) Ha ha ha

C-U-P-S

When dealing with homeowners I am sure that you find that many of them reference Zillow as their source for their home valuation. I have developed a selling system; C-U-P-S which allows me to present my offer to the homeowner and explain to them how I arrive at my offer.

"C" stands for comparable. Now of course, I have access to the MLS which allows me to comp out properties pretty accurately. In many instances those values are not echoed by Zillow.

Therefore the challenge is how do we knock Zillow, Redfin and their ilk out of the box?

I would like to build a list letting homeowners know why these so-called real estate listing companies are full of horse manure.

Give me a reason why and I will email you a copy of my C-U-P-S selling system. I design a system really for other people who I have working out for me in the field.

So why Zillow full of horse manure?

Thanks

I've been flipping, investing in real estate both residential and commercial for about the past four decades. Well actually 3 1/2 decades but who's counting?

One question that constantly pops up is; "I have about $180,000 do I have enough money to invest in real estate?"

Or like in a recent forum Fellow BP member posed the question of is it better to pay cash for Real Estate investment?

As an investor you're always looking for a cash on cash return. I have $100,000 out there, what is my cash on cash return?

I have one personal philosophy "rent money especially when the rent is cheap"

I found this meme on some social media platform and hijacked it several months ago but it's very true.

This may be an oversimplification but it's very true so let me apply this concept to a real live flip. In the screenshot below I take a property In Las Vegas and I'm still working on to get under contract. Well my friend and I had it under contract at one number and then after reviewing the condition of the property decided to go back in for a second grind. There is a listing real estate agent involved so when you take her out of the picture. But that's another story.

So we have this property under contract for $235,000, the renovation is $45,000 and the ARV is easily $348,000 we have supporting comps more than one.

Now in an all cash scenario your cash out of pocket at closing plus closing costs assuming the front end the renovation money is $280,000 which does not include holding costs. I typically program out a five month hold for all of my deals, although reality is 3 1/2 months.

As you can see from my application worksheet on a cash basis my cash out-of-pocket is an excess of $280,000 plus holding costs $3067 my cash net profit on the steel would be in excess of $47,000 with a 17% cash on cash return.

This is where leveraging your cash comes into play if I finance to steal my cash at closing is slightly over $32,000 my holding cost over five months are slightly over $15,000 (Paying rent for the money and loan costs). My financing net profit is $26,404 represents  a 76% cash on cash return. My loan costs are cheap 2 1/2% LO and a 12% annual rate. But it really doesn't matter because I'm not gonna have the money for that long.

So what would you rather do shell out over $280,000 and make $47,000 and a 17% return, or shell out slightly over $32,000 plus only costs make a net profit of $26,404 with a 76.48% return. I personally think the answer is obvious but it's always good to know what your choices are.

Purchase the properties in your own name and transfer them into an LLC or trust or whatever as long as you keep making loan payments no one cares. You can take your vice a CPA/lawyer but always remember all they are doing is giving you advice at the end of the day it's a business decision that you make.

@Kishun Barker money in itself has no value money’s value lies in what you turn it into. for example you can rent money and rent that money out.

For example you could take out a HELOC pay maybe 3.2% then lend that money to the third party and collect 9%. You make money on the spread.

You’re talking about buying duplexes. Don’t forget on anything you make money on the buy. Why pay cash for the duplex when you can borrow maybe up to 90% of what you need. Pay a lower interest rate and rent those duplexes out and make money on the spread. But instead of using your cash to buy one duplex you buy ten. It’s all about maximizing your cash on cash return. How much cash do I have out there? And more importantly what is my return on that cash? If you need clarification don’t hesitate to reach out to me.

Hey Kyle I've tried all kinds of things let me give this ago and see what happens. When I start to write the post and then asked me which form I want to post it to I've put in marketplace and it does not seem to give me that option but let me try the link that you just have in your reply thank you

Hey guys I used to be a pro member for many years dating back to 2015 or so, it got boring so I let my pro membership lapse to basic membership. Recently I decided to post some properties on marketplace, wanted to update my membership to pro, took me automatically to premium which is significantly more money a month. $99 versus $29, okay why not. So I am told with my premium membership I can generate lots of leads I can also list in marketplace, and list real estate for sale. Now maybe I'm not smart enough but how do I list a post in marketplace and how do I list real estate in real estate listings. I have asked support this question and have searched using the search tool to no avail. If anyone can point me in the right direction with links or whatever I would be very grateful thank you.