Riches Building Workshop

Presentation Transcript

Riches Building Workshop Using Real Estate To Develop Your Investment Portfolio

ACT NOW AND GROW RICH!, CALL NOW FOR SCHEDULE OR PERSONAL CONSULTATION Kelley Bredell 866-953-5599 kelley@homesbykelley.com

To accomplish "Riches", homeownership is at the heart of individual and monetary security, and it is foundational to building riches . BE on a mission and hear the expressions of numerous top of the line creator and monetary mentors to join the a large number of different Americans to purchase their first home, a moment home or venture property throughout the following couple of years.

"Homeownership can be the centerpiece of your riches building methodology, the way to accomplishing budgetary freedom." — David Bach The Automatic Millionaire Homeowner TM Wealth Building We need to start cooperating to accomplish your own and money related objectives through Homeownership.

"… in the event that you purchase a modest bunch of homes through the span of your lifetime and lease them to other individuals, you won't simply be monetarily secure, you'll be rich — possibly truly rich!" — David Bach The Automatic Millionaire Homeowner TM Not A Tycoon? Not A Problem! Americans are purchasing extra homes in record numbers. Of 2.8 million buys in 2004 alone: Nearly 64% were venture properties About 36% were second homes The right specialists can help you purchase yours! Source: National Association of Realtors 2005 Profile of Second-Home Buyers

Real Estate Is An Accompaniment — Not An Alternative — To Other Investing: Most venture specialists prompt broadening. There are no gem balls to foresee showcase heading. There are no property gratefulness ensures, yet … The National 20-year normal home thankfulness has been 3-6% every year It " s up to you to settle on a good choice.

"It's not about planning the market. It's chance in the market that is essential." — David Bach The Automatic Millionaire Homeowner TM It " s About time … Literally! Loan fees are still generally good. A milder market MAY be more arrangement well disposed. Think long haul — land increases in value after some time The " correct time " to purchase is when you are capable.

"Everybody needs to profit quick. Be that as it may, if that is your objective, you've gone to the wrong place. What we're discussing here isn't transient theory yet long haul responsibility." — David Bach The Automatic Millionaire Homeowner TM Are You Willing — And Able — To Make A Long-term Commitment? Purchasing to " flip " can be hazardous in the event that it gets to be important to clutch the property. Having the capacity to climate a stagnant market or a transitory downturn is critical. Overseeing through a rental crevice is basic. Specialists foresee a solid rental market in light of rising home buy costs.* Source: National Association of Realtors 2005 Housing Profile

What Kinds Of Properties Will This Workshop Focus On? A property to lease full time to: – Families – Working singles – College students – Year-round vacationers A property to utilize: – mostly as a country estate – halfway as an investment property A multi-family home where you lease all units or live in one and lease the others A property to revamp, lease and offer when the time is correct

What Kinds Of Properties Won " t This Workshop Focus On? Loft structures with MORE than four units Second homes for elite use by proprietor – Still a savvy speculation – Can be an extraordinary retirement methodology – Similar to purchasing a main living place – Senior purchasers can utilize a graduated house buyback

Think Double Profit Potential Making a land venture and taking care of progressing costs utilizing other individuals " s cash, sets the phase to: Build value as you pay off your home loan as well as property estimation acknowledges — PROFIT POTENTIAL #1 Re-offer later on at a benefit — PROFIT POTENTIAL #2

Does An Investment Property Fit Into Your Financial Plan? What is your objective for this property? – Supplement pay now – Cover costs for the present – A retirement home – A money return at deal Does land contributing supplement your different ventures or propel your monetary objectives? Can you make a month to month commitment to this venture?

Are You Ready To Be A Landlord? It " s not only your venture — it " s your way of life! It is safe to say that you are a hands-on or hands-off proprietor? Learn before you jump. Incline toward your group.

What Is The " Typical " Rental Property? For whatever length of time that it " s rentable or sellable (contingent upon your methodology), you can profit on a home: Seaside cabin to elevated structure Single-family to numerous unit abiding Co-operations and condominiums … and you're going to figure out how!

Where Should You Buy? Area, Location, Location! Consider your rental pool. Littler is simpler than bigger. Conform your principles. Pick the right district. What about a fixer-upper?

Where Should You Buy? Area, Location, Location! Consider your rental pool. Littler is less demanding than bigger. Modify your norms. Pick the right area. What about a fixer-upper?

Where Should You Buy? Area, Location, Location! Consider your rental pool. Littler is less demanding than bigger. Modify your gauges. Pick the right region. What about a fixer-upper?

Where Should You Buy? Area, Location, Location! Consider your rental pool. Littler is less demanding than bigger. Alter your benchmarks. Pick the right region. What about a fixer-upper?

Where Should You Buy? Area, Location, Location ! Consider your rental pool. Littler is less demanding than bigger. Modify your principles. Pick the right district. What about a fixer-upper ?

When Is A Fixer Upper Worth Fixing Up? cost of repairs rental pay lost amid remodel asking value add up to = your "genuine" cost Add: $ 20,000 +$ 6,000 +$140,000 $166,000 If the " genuine " cost isn " t no less than 20% not exactly the home " s advertise esteem, it " s not for you!

Make A Vacation Home More Affordable Stay (to some degree) out of the way. Shop off-season. Look out extraordinary open doors.

"The greatest oversights I've made in land haven't been what I've purchased — however what I didn't purchase when I had the possibility. It's the offers you don't make that end up costing you the most cash." — David Bach The Automatic Millionaire Homeowner TM Is There An Ideal Time To Buy? Assemble the truths from your group of specialists. Crunch the numbers. Make the dedication. Dive in.

"Realizing that great home loan arrangements are out there isn't sufficient. You need to make sure that one of them has your name on it — truly. This implies getting a loan specialist to give you a propel duty for a specific home loan at a specific rate before you even begin searching for a house." — David Bach The Automatic Millionaire Homeowner TM Priority 1: Know precisely what you can bear. Wear " t squander time on properties out of your value run. Be what might as well be called a " money purchaser. " Expedite the advance endorsement handle.

How Much Rent Should You Ask For? Before you set your value: Talk to your Realtor ® . Perused the nearby daily paper. Do some " mystery shopping. " Think Ahead.

Calculating Your Monthly Cash Flow Estimated contract installment Property duties and protection Utility expenses not paid by the tenant Repairs and support Advertising/showcasing costs Potential Realtor and administration organization charges Backup finance (at least 5%) for opening and crises When you figure the 80% wage administer, is it inside your customary range of familiarity?

Example: Optimal Cash Flow Calculation Purchase situation: Condo Purchase Price Down Payment (value from essential home) Monthly Rent Potential $125,000 $25,000 $1,000 Monthly PITI (Mortgage- - $600; charges, protection - $129) 1 Monthly Home Equity Loan installment 2 Monthly Maintenance cost Total Monthly costs Estimated costs: $ 766.67 +$ 192.23 +$ 66.67 $1025.57 1 The illustration accept a 20% up front installment on a credit measure of $100,000 with a 30-year term. The month to month main and intrigue installment for this illustration would be $59.56. The outcomes above accept an expected $1,700 in extra shutting costs and prepaid back charges. In the event that the initial installment is under 20%, contract protection might be required and could expand the regularly scheduled installment and APR. 2 Assumes a 8.50% APR on a 30-year home value altered rate advance.

When Does The Investment Begin To Pay for Itself?

Caveat Emptor! Recognize What You're Buying: Get an examination. See the dealer's Schedule E. Look at comps. Get mortgage holders affiliation reports and records.

"The boundless exhibit of accessible home loans is a genuine aid to first-time homebuyers and experienced land speculators alike." — David Bach The Automatic Millionaire Homeowner TM The Right Financing Makes All The Difference Use other individuals " s cash when you can. Consider utilizing your present home " s value. Coordinate your financing to your venture objectives. Think regarding execution, not simply cost.

The Right Financing Makes All The Difference An informed speculator ought to think about venture property: Interest rates Down installments Loan sums Products

The Right Financing Makes All The Difference And have you caught wind of: Mortgage Express? Extended Financing Solutions? Intrigue Only ARMs?

A Word About The Folks Who Pay The Rent The Federal Fair Housing Act bans segregation in view of race, shading, religion, sex, national root, incapacity, or familial status. Neighborhood and state laws may incorporate extra arrangements. What to search for in imminent occupants: Adequate salary Employment strength Credit history and references Time in last home Head number

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