The field trip

[-Tony- 0]

(As the theme song to the sting plays)

Tony rolls up and meets his new realtor friend and others from the investing group. Tony brought his beautiful bride to go on a field trip for investors. Well, while they were waiting for the group leaders to get organized they met several people. The one that stuck out the most (because Tonys wife couldn't figure what to wear earlier [no to nice, no not nice enough, no to wrinkled, no to kiddish ect]) was this mid 40's lady (old shirt no bra worn jeans). Come to find out she just quit her job and and makes 3k (and growing) investing full time. Hmmm...I told her most of the people wouldn't care what she wore.

 

Let me tell you what they do on these field trips:

they look for distressed properties that need a little work. They sign contract 90-120 days out fix the house before the appraisal. After appraised the should have 25-30k equity (when you buy at 50k put 3-5k in hebab in it thats a lot of equity) they than finance through a heloc at or below if they want 80% of the appraisal. You ask what I mean at or below well if the have room they can actually pull some cash out ex:

 

contract for 50k 5k rehab=55k

appraised at 80k 80% of 80k=64k

now they have the choice to pull out 9k or not

what you can do is pull the 9k for your next deal.

 

Now hear is where it gets tricky they try to buy in the same area so not only do they have that instant equity (with the work the do and quality people they get in the houses), they also increase the value of all the properties in the area up.

 

We went buy and saw one of the members houses. Purchased for 55k 2/11/2 with a detached garage put 8k into it to get a 3/2 worth fmv of 92-95k.

 

But with this you have to buy right and have a little cash to start (or access to cash).

 

I got talking to the Robert my realtor friend (Cause most of the investors are buy and hold), and explained the profit potential if they were to use the l/p method to sell/rent. If you do this the number are phenomenal.