Larry Goins Explains How To Become An Ultimate Property Analyzer
LarryGoinsFreeOffer.com explains how to become an ultimate property analyzer.
(EMAILWIRE.COM, September 22, 2008 ) Lake Wylie, SC - The Ultimate Property Analyzer is a great program that designed to help you in your business. The property analysis programs that have been found were complicated and took too long to understand. LarryGoinsFreeOffer.com wanted a simple program that they could use to quickly calculate how much we can pay for a property. They were so amazed at how fast you can make an offer when using this program! They made their first offer before they got off the phone with 100% confidence.
Simply enter the after repaired value (ARV) because you’ve already preset the other costs. Then enter the amount of repairs and it calculates your offer automatically! You can even list how much you want to make!
Let’s take a look at a deal.
If they tell them the ARV is $100k. They’re calculating $100k times .7 and that’s $70k.
Then they deduct hard money closing cost, which averages four points or $2,800. That reduces it to $67,200 and based on past experience the taxes, insurance and attorney fees for this will be $2,250. Now it’s $64,950. They’re told it needs $15k in work, so they reduce it by $15k. That leaves $49,950. Now they subtract they’re desired profit. If they want to make $5k, they cannot pay anymore than $44,950, so they offer $38,780. Always use an odd number because it lets the Seller know that you’ve done your homework. If they just say $38k, the Seller thinks they Buyer is just throwing a number out.
They buy 10-15 monthly and never look at them. It’s not recommend doing this starting out; but once you do it for a while you can too. Once you get the system setup and implemented, you can go into any market, in any city, anywhere in the country and buy and sell property. That’s exactly what they do. They set up new markets every month in areas they’ve never been before. In fact they just completed a transaction in Cleveland, OH. They had it sold before we closed. They bought and sold it the same day and made $8k.
When buying in the market, you need to be in it at no more than 70% including purchase, rehab and closing costs. That’s if you’re rehabbing it. However, if you’re buying a property that’s an “Instant Landlord” property, meaning that someone else has already bought it, fixed it up and is re-selling it or if it’s a property that’s already in good shape; you can pay up to 80% depending on the cash flow. It isn’t recommended to pay more than 80%-85% on a property. It’s also not recommended financing more than 80%-85%. You want to leave a little room in the event you need to sell quickly. That way you’ll always be able to sell that property. Remember your area may be different. You’ll have to ask other investors in your area and do some research to find out what the market will bear. If the property needs no repairs, you won’t need a rehab loan. You can probably get a traditional loan up to 100% depending on what you can qualify for and that way you’ll be in the house for no money down. However, if your goal is to buy, fix up, re-finance and rent out, in most markets you will need to buy them at no more than 70%. Fix it up, re-finance it at 75%-85% loan to value, and pull out the cash, which is TAX FREE cash, as you don’t pay tax on borrowed money. Then you can rent the property out at a positive cash flow and have Tax Free cash in your pocket.
For more articles and a 10 part e-course on how to create your own Ultimate Buying and Selling Machine! plus over 50 training audios, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this plus 51 exclusive, editable Forms and Documents, two real estate investing eBooks, a personal coaching profile, nationwide wholesale property listings, weekly training teleconferences, a subscription to my weekly investing newsletter, Admission for two to Investor Palooza and Much More!
Simply enter the after repaired value (ARV) because you’ve already preset the other costs. Then enter the amount of repairs and it calculates your offer automatically! You can even list how much you want to make!
Let’s take a look at a deal.
If they tell them the ARV is $100k. They’re calculating $100k times .7 and that’s $70k.
Then they deduct hard money closing cost, which averages four points or $2,800. That reduces it to $67,200 and based on past experience the taxes, insurance and attorney fees for this will be $2,250. Now it’s $64,950. They’re told it needs $15k in work, so they reduce it by $15k. That leaves $49,950. Now they subtract they’re desired profit. If they want to make $5k, they cannot pay anymore than $44,950, so they offer $38,780. Always use an odd number because it lets the Seller know that you’ve done your homework. If they just say $38k, the Seller thinks they Buyer is just throwing a number out.
They buy 10-15 monthly and never look at them. It’s not recommend doing this starting out; but once you do it for a while you can too. Once you get the system setup and implemented, you can go into any market, in any city, anywhere in the country and buy and sell property. That’s exactly what they do. They set up new markets every month in areas they’ve never been before. In fact they just completed a transaction in Cleveland, OH. They had it sold before we closed. They bought and sold it the same day and made $8k.
When buying in the market, you need to be in it at no more than 70% including purchase, rehab and closing costs. That’s if you’re rehabbing it. However, if you’re buying a property that’s an “Instant Landlord” property, meaning that someone else has already bought it, fixed it up and is re-selling it or if it’s a property that’s already in good shape; you can pay up to 80% depending on the cash flow. It isn’t recommended to pay more than 80%-85% on a property. It’s also not recommended financing more than 80%-85%. You want to leave a little room in the event you need to sell quickly. That way you’ll always be able to sell that property. Remember your area may be different. You’ll have to ask other investors in your area and do some research to find out what the market will bear. If the property needs no repairs, you won’t need a rehab loan. You can probably get a traditional loan up to 100% depending on what you can qualify for and that way you’ll be in the house for no money down. However, if your goal is to buy, fix up, re-finance and rent out, in most markets you will need to buy them at no more than 70%. Fix it up, re-finance it at 75%-85% loan to value, and pull out the cash, which is TAX FREE cash, as you don’t pay tax on borrowed money. Then you can rent the property out at a positive cash flow and have Tax Free cash in your pocket.
For more articles and a 10 part e-course on how to create your own Ultimate Buying and Selling Machine! plus over 50 training audios, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this plus 51 exclusive, editable Forms and Documents, two real estate investing eBooks, a personal coaching profile, nationwide wholesale property listings, weekly training teleconferences, a subscription to my weekly investing newsletter, Admission for two to Investor Palooza and Much More!
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How to real estate, Real estate training courses, Real estate forms, Foreclosure investing, Invest in real estate
How to real estate, Real estate training courses, Real estate forms, Foreclosure investing, Invest in real estate
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