Stock market and mutual funds are roller coasters! Up and DOWN!!!
401Ks require you to invest in these types of funds.
In this video I share with you how you can transfer your dormant 401K into a Self-Directed IRA so that you can invest your own money into real estate with tax deferred profits.
If you'd like to learn how you can invest in Secret Off-Market properties, CLICK HERE
Get all the benefits from it, get all the increased value, and to be able to make money along the way so you earn while you learn?
In this video I'm going to use one of the examples that I have in my course of a mobile home park, because mobile home parks many times have extra hidden assets and opportunities for you to make even more money. I'm going to show you exactly how the numbers could work.
It is literally possible for you to buy a property with nothing upfront out of your pocket. And, in the meantime, control the property and have cash flow coming to you every month. And I’ll show you how you could build to the point where you could have $100,000 a year in your pocket.
The majority of Mobile Home Parks in America are owned free and clear. There is no banker. How would you like to buy a property and not have to go to the bank to get a loan? How would you like to cut a deal where you do not have to have a down payment? Those are two wins I think for you.
As a newbie, you'd like to get the cash flow. If you had 50 units and you increase the rent $50 a month, you have $30,000 more income coming in each year. Would that be nice? Sure, would! It is a win-win deal and I like that. You benefit because you get the income, you get the upside, you get the capital appreciation, you get the opportunity to increase the value and you get all that because you set a fixed price in advance.
At the end of the master lease, or any time before the end of the master lease, if you want to exercise your option, you could. It is a wonderful way for you to get into a property with literally nothing down. I think it is great for you. I’m going to tell you point blank,...
Can you make money from REOs and from doing buy, fix, and flips? I would be dishonest If I said you can't. My students, my family, and I have all made money on REOS. They've recently bought REOs. But, they didn't buy them from the big banks. They bought them from smaller institutions or credit unions, as all-cash deals, where they had the liquid assets to buy it at a big discount. The property was bought for 50%-60%-70% off the list price, by providing the bank statements and by closing quickly with no financing contingency. They got a good deal. If you can find a good deal and do that, that's fine. But you're still coming up with the cash, one way or another.
This is not the 2008 REO market
Buying buy-fix-flip residential real estate is good; it can create income, but not wealth. Frankly, getting REOs and doing buy, fix, flips or buy, fix, holds, in this time frame just creates a second job for you. You're chasing down the deals, competing with everybody else, coming with cash,...
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Anyone that tells you, you don't need money to do buy, fix, and flip is lying. Now I didn't say it had to be your money, OK? But you do need money to do a deal. So, unless you are sitting on a ton of cash, you are probably going to be look at borrowing the money for your buy, fix, and flip, deal from a hard money lender, not the bank.
Let me describe how it really works, because I have been a real estate lender for over 30 years. I started lending with the Bank of America when I was only 22 years old. I have worked for the Bank of America and the Chemical Bank of New York, and have been a residential and commercial lender and commercial mortgage broker for the last 20+ years.
Let’s say you were going to go to a bank to try to get this deal done and buy residential property as an investment. First off, the banks are not going to be wild about making that loan in the first place, and you must go through all their hoops and rules and you must have a 20%...
There is the golden rule of business. This is not the golden rule you learned in Sunday school. The golden rule of today’s business is that he or she who has the gold makes the rules. They make the rules and then they enforce them. Banks require that when you to agree to their deal you must live or die on their restrictive and limiting rules.
I also want to address purchasing a foreclosure at a tax auction or sheriff sale. You’ll have to comply with their rules. When you’re buying a property in that venue, where you have an auction, you’re buying the property without ever seeing the inside of it. It’s boarded up, it’s papered up, you can’t get in, you’re not going to see it. You can’t bring your appraiser in. You can’t bring your inspector in. You can’t get in to do it. This is what I call Real Estate Gambling. If you buy it, pig in a poke, you have no idea what you’re getting into. Plus, you have to pay for the...
The residential REO market has changed. There’s less inventory than there was in 2008 to 2012. There are several points I want to make here about what’s going on with the current REO (Bank Real Estate Owned) market when it comes to investors who are purchasing REOs for buy, fix and flip and buy, fix, hold.
Between 2007 to 2011, banks were giving away their foreclosure resales at approximately half price because the REOs were destroying the banks’ balance sheets. They were terrified that the United States government (Controller of Currency) would come in and shut them down. If you remember, we were watching on the news and on the internet in 2008, 9, 10, 11 and 12, when, four, five, six hundred banks were seized and closed a year. And that was because their portfolio of residential bad loans. The banks’ sub-prime loans, \were taken care of by the federal government’s $7 hundred billion bailout.
A lot of real estate agents, brokers, and...