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Monday, March 26, 2012

Real Estate Investors need to use an Action Plan.

There is a saying among Real Estate Investor's - "You Make Your Money when You Purchase the Property not When you Sell It."

There are so many things that can go wrong so it is important to make sure you buy the property right.

Smart Real Estate Investors need to develop an Action Plan before they are going to purchase an investment property. This plan should include the following:

  • Identify a possible property for investment.
    • Make sure your SELLER is MOTIVATED to do the deal.
  • Perform a market analysis.
    • What are going to be your carrying costs for the next 90 Days. Principal, Interest, Insurance, Taxes, Utilities, HOA fees....
    • After Repair Value ARV - What is the property worth after repairs. Look at the COMPS! Yes, the comparables.
    • Calculate your repair costs.
    • Calculate your Fair Market Rent FMR. See if the property is going to cash flow.
  • Secure Your funding for:
    • Purchasing the Asset.
    • Carrying Costs.
    • Repairs.
  • Note: Don't forget to pay yourself for all this work you are doing!
  • Make an OFFER based on the Maximum Allowable Offer MAO Rule, using ARV, Carrying and Repair Costs.
  • What are you going to do with the asset? Develop an EXIT Strategy:
    • Flip the property for a profit or
    • Hold the property for Cash Flow.

This is the basic action plan which needs to be very fluid. Things change and you need to adapt.

Turnkey Property!

One of the more successful Action Plans we have used is to bundle a Section 8 or Plan Ocho tenant within the property FOR SALE. The tenant is part of the BUYER's Turnkey Package.

TURNKEY means the BUYER simply needs to turn the key to the front door and start making MONEY.

All the hard work has been done for the BUYER:

  • Buying a Property that will Cash Flow.
  • Rehabbing the property and brought up to Code.
  • All utilities are functioning.
  • Finding a reliable tenant.
  • Asset Protection strategy is already in place.
  • Selling the Investment Property with minimal Closing Costs.
  • Optional: Have it already furnished.

Investors should provide a turnkey solution for all their properties they plan to sell in the near future.

BUYERS like the idea of purchasing a property that comes bundled with a tenant.

Action Plans allow for Immediate Cash Flow and no Headaches!

Written by Bob Burns.
 
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The caricature of Bob BurnsMoney in The Bank Baby!
Bob Burns Print Signature Photo
Real Estate Investor
about.me/RobertKBurns
Telephone #: 305-586-5280
email: sec8@planocho.com
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Sunday, March 11, 2012

Deerfield Beach Housing Authority (DBHA) Opens Their
Section 8 or Plan 8 Waiting List.

The Deerfield Beach Housing Authority (DBHA) will accept 500 preliminary Section 8 applications for the Program's Waiting List on Wednesday, March 21, 2012.

The Section 8 Wait List will only be available online at www.dbhaonline.org starting at 9:00 a.m. until 500 are submitted.

Any Section 8 submission that is not fully and accurately completed shall be void. Only one per household will be considered throughout the entire process. Anyone that submits more than ONE will be void.

NO TELEPHONE CALLS, FAXES, MAIL-INS, WALK-INS, E-MAILS, OR DROP OFF WILL BE ACCEPTED.

DBHA will only accept 500

Again, the preliminary waiting list will close once 500 applications are submitted online.

To qualify as an eligible family, the total household annual gross income must not exceed the very-low income limits, as shown below, for the household size.

Family Size: 1 Person 2 Persons 3 Persons 4 Persons
Very-Low Income $25,100 $28,650 $32,250 $35,800

Family Size: 5 Persons 6 Persons 7 Persons 8 Persons
Very-Low Income $38,700 $41,550 $44,400 $47,300

If you do not have computer access at home, you may go to a public library or any other place where computers are available to access this website to complete the application.

If you need reasonable accommodation for a special needs person, please contact the Center for Independent Living at 1-888-722-6400 or Deerfield Beach Housing Authority at 954-425-8449, five business days prior to the opening of the preliminary waiting list.

For the hearing impaired, please call TDD#1-800-955-8771.

Related Links, Blog Postings, Presentations or Articles:

Written by +Bob Burns.
 
####
 
The caricature of Bob BurnsNo Boundaries, Baby!
Bob Burns Print Signature Photo
Real Estate Investor
about.me/RobertKBurns
Telephone #: 305-586-5280
email: sec8@planocho.com
Our Internet Footprint:Section Eight Icon Face Book Icon LinkedIn Icon Twitter Icon Youtube Icon RSS Logo  Top Blogs

Sunday, March 4, 2012

Florida's Hurricane Season and FEMA's Hurricane Preparedness Widget

Florida's Hurricane Season


One of the biggest pains being a real estate investor in Florida is getting prepared for Hurricane Season. Due to the amount of work, we wait to the last minute before placing the hurricane shutters onto our rental property's windows.

As a result of waiting, problems are going to arise like:

 

  • Going to Home Depot.
  • Gathering Supplies, if available like:
    • Make sure you buy gloves PLEASE. I can't count the times we have been hurt just because we don't have gloves on.
    • Sun Block, Hats, Sunglasses, etc. Florida SUN is brutal. I find that the weather is beautiful just before the storm arrives. Sort of like "The calm before the storm."
    • Buy Wasp spray! As you are installing shutters on the second floor of your investment property you will find out why you need the spray! The EASY way or the HARD way.
    • A SPEED tool that allows you to secure the screws or wing nuts onto the shutter. You will thank me later!
    • Ladders of various sizes. Buy at least one that adjusts to 40 feet made out of fiberglass, NOT ALUMINUM. Why? Hint: High tension electrical cables.
    • Chain Saw and gas for cutting tree branches away from the property and for use after the storm.
  • Waiting in long checkout lines.
  • Loading tools and supplies onto your vehicle. Like getting your ladders onto the truck.
  • Driving to the property! OK for local properties but what if the asset is in another county? At one point I had several properties in Sarasota, Broward, Miami Beach and Miami-Dade.
  • Traffic – People getting out of the storm's path.
  • Finding HELP! Try installing these shutters alone! Now try it on 15 other properties. See what I mean.

You are going to work harder than you ever did before. You' ll be so tired that you want the storm to blow away your portfolio of rental properties so you won't have to ever do this again.

At last the second, the storm veer's and never arrives.

You see how crazy it can get?

Oh, by the way, if for some reason you didn't get the shutters up on time and there is damage as a result of the storm, the insurance company will not pay. Just thought I would mention that!

FEMA Hurricane Preparedness Widget

One of the reason I was inspired to write this post, I found a little widget from FEMA that provides you information about getting prepared for the hurricane season or any other disaster. I have installed this widget on all my sites to help my readers make informed decisions. See the widget sample below.

Related Links, Blog Postings, Presentations or Articles:
  • See our new Section 8 or Plan 8 Miami Florida Blog. A Section 8 or Plan 8 blog for real estate investors and tenants in Miami Florida. This blog is designed to provide content for real estate investors, landlords and potential tenants who wish to participate in the HUD program.

Written by +Bob Burns.
 
####
 
The caricature of Bob BurnsPost Up!
Bob Burns Print Signature Photo
Real Estate Investor
about.me/RobertKBurns
Telephone #: 305-586-5280
email: sec8@planocho.com
Our Internet Footprint:Section Eight Icon Face Book Icon LinkedIn Icon Twitter Icon Youtube Icon RSS Logo  Top Blogs