So this is the point no one wants to tell you when it comes to Real Estate Investing because in most cases they NEVER flipped a single property!
The have advisors and experts or so they call themselves who have people spend money on seminars and webinars without ever really teaching how to create a profitable business.
In Residential Real Estate most say it's about Location, Location, Location. It is actually more about School System, School System, School System! This is a dangerous time to be navigating in Real Estate market without guidance as prices have fallen and will continue to drop. Our plan is to change what seems to be the largest financial and emotional problem this country has ever seen.
My associate Al Thomason has attended over 70 auctions in the last 2 months alone. Al has been to hundreds of auctions. It takes a significant amount of due diligence to answer the following questions: what would be the highest price to pay, what is the condition of the property, how much construction money will is take to rehab the property? How long will it take for the construction to be completed? By example a flip is considered by the market in buying and selling terms, a property would take a 6-8 week timeframe. If we close on a property using Nov. 1st as a start date for work, the construction usually takes 3-5 weeks. We always have 2 open houses 2 weeks prior to the completion of construction. The home sells in an open house say on Nov. 25th, and closing could be scheduled to close Dec. 15-21. This is a 6 week close which is our plan for success.
The program we developed is how to have 1 million dollars in savings in 3 years. The original plan is that you flipping 4 houses per year for 3 years at $100,000 profit for each property. You would pay $200.00 in taxes, gross income $1,200,000 less taxes $200,000 equals 1 million profit in 3 years. Long term cash flow is the key. Business creates other businesses such as if an investor buys stocks or actual real estate, multi family investment, student housing, or 55 and over. The country needs approximately 25 million in affordable Housing . Every media outlet as well as politicians are all talking about the need for Affordable Housing.
How can you have affordable housing when we have high constructions costs for instance as well as high land cost? This is not a myth, it is reality. As private investors we needs cities, states and governments to help us create 10's of thousands of affordable housing units at a reasonable price without these 2 major issues preventing developers to create cities and subdivisions whereas kids have a backyard to paly in.
There are approximately $500,00 homes needed. These people pay high rents and are the choices are limited for those people who make $25,000 to $45,000 per year but cannot afford a decent roof over their heads .We also need affordable rentals.
We can create affordable housing for veterans such as trailer homes in developments that have many amenities such as pools, baseball fields, soccer fields, etc.
Our goal is to help veterans , the 55 and over community also those people only making $25,000-$45,000 per year. The plan works whereas the borrower gets approved. They have the option to go to a lender of their choice or Drew Mortgage. They get a firm written commitment letter stating that they are approved which will specify exactly how much of a loan they qualify for, making them a cash buyer , putting them at the top of the competition in bidding for houses.
Thanks for reading and for continuing the journey with us it winning in the Real Estate Game.
DMR