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Showing posts with label cash. Show all posts
Showing posts with label cash. Show all posts

Monday, June 10, 2013

Cleaning & Securing an Investment Property Adds Value


As soon as we close on an Investment Property, we want to implement our Exit Strategy. The faster you get this distressed investment property back on-line the less money you are losing due to holding costs and the quicker the asset will cash flow. Every step we implement adds value to the property.

The first part of bringing the property back on-line is to Clean and Secure the property. This adds the most value to the property with minimum overhead. Below is an outline that describes the basic process of cleaning and securing a real estate investment property. By the way, most of these steps you can do it yourself.

Clean and Secure Process

  • Removal of debris from Interior & Exterior of House - If the investment property has been abandoned or on the market for a while, chances are there has been a buildup of debris and the property was broken into and trashed. The property becomes an eyesore and the city is just waiting to pounce on the new owner.
    • Dumpster container picture from Ocala property.
      Dumpster for Debris
    • Order a Dumpster - Depending on the amount of debris, you may have to order a dumpster. Delivery and removal are handled by the Dumpster Company. You just pile in the debris.
      • Can be very expensive.
      • Neighbors will help themselves by using your dumpster to pile in their debris.
      • Permit Fee is built into the price. The City keeps track.
        • Suddenly, city inspectors will begin to show up to see what you are up to and do you have the proper permits.
      • Neighbors can see the dumpster on the premises. They will report you to the City.
    • Finish cleaning and get rid of the dumpster as soon as possible. Less attention.
  • Recycle Materials - Every house contains items that you can recycle and receive money for these items. We are serious! You can start pulling cash out of the property right away.
    • eBay - You can place in eBay's Classifieds an ad selling items you found inside the property. It Works!
    • Metals - based on cost per pound.
      • Non-Ferrous - You know the metal that doesn't let a magnet stick to it.
        • Copper, Brass, Aluminum, Lead, Tin, Nickel, Gold, Silver
        • A/C Coils, Radiators, Batteries, Pots, Stainless Steel, Motors, Transmissions, Bathroom Fixtures, Electrical Wire.
      • Scrap - Less money. Pull wiring and motors off of appliances and recycle them separately.
        • Iron, Steel, Sheet Metal, Rebar
        • Old Appliances, Water Heaters, Non-Copper Pipes
        • Dryer & Stove Electrical Wiring
          • Three prong cords - Found on ranges and dryers.
  • Make sure all access points are secure
    • Doors with locks
      • Locksmith - You made need one if you are not handy with installation
    • Windows are covered with wood, rejas (metal bars) or original window.
      • If glass is cracked or missing must board whole window.
      • Board on window must be painted & uniform with other boarded windows.
      • If there are iron bars on the bedroom windows, they must have breakaways. Minimum size 20 x 41 inches.
      • If all windows are boarded, air holes must be drilled into plywood to provide ventilation.
      • Independent Securing Service - If you don't want to board up your property by yourself.
    • Secure your Outside Water Access - People will steal your water, especially if your neighbors have well water and you are connected to the City Water System.
  • Landscaping

By cleaning and securing the property you are adding value to your property right away, preventing break-ins, getting the city off your back and who knows, sell it as is to another investor for a nice profit!

Written by

Related Links, Blog Postings, Presentations or Articles:

Written by +Bob Burns.
 
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Bob Burns at MREIAs speaker podium.Clean and Secure!
Bob Burns Print Signature Photo
+Real Estate Investor
about.me/RobertKBurns
Telephone #: 305-586-5280
email: sec8@planocho.com

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Monday, January 23, 2012

Do You need FUNDING to be a Real Estate Investor?

Eventually a Real Estate Investor will hear about a deal that is too good to pass up but their CASH is all tied up in another deal. There are no funds to purchase or repair! Time to borrow money!

But before the phone call is made, Investors need to:

 

 

  • Act Quickly before the deal is sold to another investor.
  • Ask questions about:
    • Will the owner accept "No Money Down?" If not, what is the minimum down payment?
    • Can the down payment be something other than cash?
    • Will the owner hold paper? If so, up to what percentage?
    • What are the monthly carrying charges? (Insurance, utilities...)
  • Determine the properties Maximum Allowable Offer MAO so you can make an offer that is going to make you money quickly.
  • Make sure you have multiple exit strategies.
Once you feel comfortable about the terms of the deal, time to dial your Lender's number! Good Real Estate Investors always have funds available 24/7 to take advantage of transactions that magically appear.

Lenders are adverse to risk so here are some questions you should ask the funding entity:

  • What states are they licensed to lend money?
  • Will they fund the deal based on the After Repair Value ARV (good) or the contracted price on the Purchase Agreement (bad)?
  • Will they fund the repair costs?
  • Is there a Prepayment Penalty?
  • How long can the investor borrow the money for?
  • Up to what percentage will they fund? If your contracted price is $150K and they will only fund 70% what is the total amount that they will lend? Answer:$105K. That means you have to come up with $45K. OUCH!
  • If needed, can the investor get more time?
  • What are the repayment terms? Are these terms negotiable?
  • Are there any Closing Costs, Points, Etc.?
  • What are the Minimum and Maximum amounts I can borrow?
  • Are there funds available 24/7 to take advantage of NEW investment opportunities?
Every real estate transaction is unique so there are different type of loans you can use for each deal depending on the parameters. Here are a few names you have probably heard of:
  • Conventional
  • Hard Money (Quick but expensive)
  • Private Money Lender (Best Option)
  • Transactional Funding (Good for Short Sales)
These all serve a purpose and have advantages and disadvantages for real estate investors.

Here is a list of lenders that you can work with. Web Links are below:

Bridge Loan for Multifamily Properties

Bedford Lending Introduces 7% Interest Rate Bridge Loan
For Distressed Apartment Investors

Hard Money Lenders

Brookview Financial

Capital Funding

Financial Help Services

Hard Money Today

Hard Money Lenders Directory

Onward Financial

PeachStone Capital

Rehab Funding

Wooden Nickel Funding

Florida Hard Money Lender

Private Money Lenders

Alan Cowgill Private Money Webinar 1st slide image

View Alan Cowgill's Private Money Webinar - Raise all the PRIVATE money you need for your Real Estate Transactions.

Mr Private Money

Trajan Financial CORP.

Transactional Funding (Good for Short Sales)

iV Transactional Funding

One Day Funding

Related Links, Blog Postings, Presentations or Articles:

Written by +Bob Burns.
 
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The caricature of Bob BurnsI Love Fort Myers Beach!
Bob Burns Print Signature Photo
Real Estate Investor
about.me/RobertKBurns
Telephone #: 305-586-5280
email: sec8@planocho.com
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