40k Flips

Quick Start Notes: Course Overview

Private Money Flow

  • *Retirement Funds* / Credit Union/ Savings Accts
  • Private Lenders rolls/ transfers their money from current 401k or IRA to iPlan Group (SD IRA)
  • Old plan wires funds into the new plan at iPlan Group
  • Create, Sign and Notarize Note and Mortgage
  • Fill out Direction Of investment form
  • Send to iPlan Group
  • Send Executed Note and Mortgage to iPlan Group
  • Money is wired out of iPlan Group to Title Co on date of closing
  • Overage of Extra funds are wired to your bank acct
  • You take $2,000- $5,000 of the overage and put into your savings acct as a draw against future profits
  • Outsource Improvements
  • Launch house
  • Sell House
  • Close House
  • Closing
  • Each lender signs off on the payoff and emailed to title co
  • Payoff are put onto the HUD 1
  • You get the remainder
  • Private Money Flow Image 9.27.13.png
  • 1171 Gardner Rd
  • Purchase Price
  • $56905
  • $5,000 Earnest Money
  • *Promissory Note Turned to Earnest Money upon acceptance*
  • purchase HUD 1 56905 2.18.13.pdf
  • Cash To Close
  • $51,011.92
  • $5000
  • $56011.92
  • Acquisition Strategy
  • REO
  • Cash for repairs, utilities, ins, marketing, etc.
  • $26,000
  • Private Money
  • $83k from Self Directed IRA
  • Wired to Title Co
  • FINAL note and mortgage for Mary tucciarone 3.1.13.pdf
  • Former banker who was let go from job and had $130k in her old 401k
  • $8k from Self Directed IRA
  • $91k Total
  • Cash Back at Closing
  • $39,988.08
  • included $5000 earnest money
  • Cash in Pocket up Front
  • $4,000
  • Deed is recorded by the title company
  • Mortgage recorded after closing
  • 1st mortgage
  • 2nd mortgage
  • Outsourced Improvements
  • windows, drywall repairs, carpet, paint, kitchen, baths, painted basement (didn't finish it), sealed driveway
  • Property Launch
  • June 30th 2013
  • Sold Price
  • $136,000
  • August 16th 2013
  • DOM
  • 45 days
  • Gardner accepted offer 9.8.13.pdf
  • Profit
  • $136,000
  • $123,000 NET after CC
  • Into it for $83,000
  • $40,000 Profit
  • 15% = $6,000
  • 12% interest = $6,000
  • $34,000 NET TO JOSH

1st Quick Start Class

  • Agenda
  • Learn the $40k flips system and a daily plan to execute
  • foundation for success
  • Josh
  • Mark
  • set the ground rules
  • LIVE coaching
  • all email into the Google group
  • so everyone has the benefit of the question and the answer
  • only constructive feedback allowed
  • no bitching just to bitch

SUPPORT QUESTIONS

  • access to the members site
  • user name
  • password
  • register for the coaching calls
  • link
  • problem Credit cards / billing
  • show them the members site
  • submit your deals
  • coaching application
  • coaching calls
  • register for all calls
  • cover the schedule of calls
  • every Tuesday and Thursday
  • %5 to pan can
  • thanks for donation and support

$40k flips coaching

  • GOAL
  • 1 private investor
  • fund 1 transaction
  • 1 reliable contractor
  • 1 40k flip property
  • $40,000

The BIG QUESTION?

  • why do real estate investors focus on sellers and buyers WITHOUT focusing on funding?
  • serving private lenders first is the foundation for a winning business model and mindset
  • give starts receiving process
  • marketing is sales in print
  • Joe Polish
  • typical real estate investor
  • goes and finds deals
  • tries to buy stuff
  • ends up wholesaling everything due to lack of funding
  • find the funding and have your competition will bring you the deals
  • 2713 Massillon Rd
  • Purchase Price
  • $51250
  • $1,000 Earnest Money
  • 2713 Massillonrd.purchase HUD 51250 9.24.13.pdf
  • Cash To Close
  • $49,339.81
  • $1,000 earnest money back
  • cash for repairs , Utilities, insurance, marketing etc.
  • $31,000
  • Close Date
  • 9.24.13
  • Acquisition Strategy
  • searching website nightly for houses
  • Private Money
  • $67k from Self Directed IRA
  • real estate agent who has had her money in a SD IRA for 5 years BUT never made an investment
  • was sitting on cash the last 5 years doing nothing
  • $17k from Self Directed IRA
  • former school text book sales man
  • quit job to move to Nashville to pursue a country music career
  • Google Sean Gorius Nashville
  • $84k Total
  • Cash Back at Closing
  • $33,660.19
  • cash for repairs , Utilities, insurance, marketing etc.
  • $31,000
  • Cash in Pocket up Front
  • $2,660
  • Repair Timeline
  • 10 weeks
  • Repairs Done by 12/3/13
  • Property Launch
  • PL Marketing Begins 12/10/13
  • December 15th 2013
  • List Price $142,900
  • Green School System
  • one of the best in OHIO
  • Sold Price
  • $135,000
  • approx.
  • Net
  • $122,000
  • Projected Profit
  • $38,000
  • 12% interest or 15% of profit on 1st mortgage
  • $5,700
  • 12% on 2nd mortgage
  • $1,000
  • Projected NET to JOSH
  • $31,300

Dream Lining

  • Lifestyle that you are trying to build a business around
  • Step 1
  • brainstorm and write down the exact income that you need to support the items that you want
  • Ferrari
  • $2500
  • House
  • $7500
  • Daily Living expenses
  • $3500
  • Vacations/ trips
  • $30,000 yr.
  • $2500 a month
  • paying off my debt
  • Step 2
  • Create the income to support that lifestyle
  • Step 3
  • Scale the business to support the income without you
  • Step 4
  • Create additional income to fill in the foundation and pad your accts
  • Work The System By Sam Carpenter
  • businessowns MUST work outside and slightly above their business in order to succeed long term.
  • melody lane case study
  • notes
  • Simple Note SAMPLE 12 percent 11.29.2012.docx
  • Equity Participation Note SAMPLE 1st mortgage 66k with notary FINAL.docx
  • mortgages
  • SAMPLE 1st and 2nd mortgage.docx
  • 12% interest on what we borrow / lend OR 15% of the profits based off of what we actually use?
  • purchase
  • Meldoy1 HUD FINAL 12.6.2012.pdf
  • Wire instructions.PDF
  • FNMA FORECLOSURE
  • MLS LISTING
  • NOTHING SPECIAL
  • great neighborhood
  • ranch
  • listing price doesn't matter
  • outdated
  • started low
  • FINAL expense budget melody 5.5.13.xlsx
  • profit
  • 8575 melody lane profit breakdown example 5.5.13.xlsx
  • Payoff Instruction Email 5.3.13 8575 2nd mortgage payoff 20k Payoff SAMPLE.docx
  • Payoff Instruction Email 5.5.13 8575 1st mortgage payoff SAMPLE 66k Payoff.docx
  • how did I find these private lenders
  • Pete
  • newsletter
  • chemical engineer
  • supplier to a big 3 car manufactures in Detroit
  • neighbor
  • put onto newsletter list
  • sent newsletters over 6 months
  • talked over regular interactions
  • asked me to talk more specifically about what I do
  • I put him off 3-4 times
  • attended graduation parties
  • finally sat down and talked formally over lunch
  • took him a nice restaurant
  • Tobias
  • newsletter
  • Millennium Feb 2013.pdf
  • customer service rep
  • friend
  • put onto newsletter
  • talked over regular interactions
  • they asked me to talk to them so they could make more money
  • they each got the newsletter
  • PROJECT 100
  • write down 100 friends, family, network
  • gather up their emails, phones and physical address
  • "Explain what you do?"
  • sell
  • buy
  • invest / lend
  • cheerleader
  • GARY KELLER
  • KELLER WILLIAMS
  • the millionaire real estate agent?
  • Northwestern mutual
  • FORTUNE 100 company
  • DiscoverYourSphere.pdf
  • payoffs and profit
  • 8575 melody lane profit breakdown example 5.5.13.xlsx