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About moellerryan

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  1. Thanks for the comment JHanson. I've been getting all positive feedback on all my articles and have been dying for someone to step up and be my nemisis. Maybe you? Based on your response, I initially assumed you live in CA and I was correct. Maybe even you would be surprised to find some great LTV and great cash flow deals outside of CA. I don't get the whole speculate in CA thing or areas overhyped by the media. I avoid those areas, media stories are garbage and most of the time useless in making good informed business decisions. Some will kill it in CA if they have good exit strategies, others will have a miserable experience. Usually they are beginners who follow, buy close to retail and speculate for appreciation on properties that barely or do not cash flow. I'd be interested to hear about what you do. You can find illustrations and numbers of current and past deals on my website. Look forward to your next response.
  2. First and Foremost when investing in real estate, you must find great deals. Not good deals, great deals with plenty of equity, cashflow and multiple exit strategies. These types of deals can withstand worst case scenarios such as the bust recently where home values dropped approximately 40% in some areas and financing became extremely tight. Industry Standards Max 70% - Total cost of purchase, fees and any repairs must be a maximum of 70% of the value of the property Rents are 1% of purchase - A property that rents for $1000/mth should be purchased for no more then $100,000 or rents are 1% of purchase Multiple exit strategies - With equity, cashflow and flexible financing you can sell at retail, sell to an investor, wholesale, seller finance a sale, lease option, rent and hold, refinance, possibly sell the note, sell the entity holding title to the property, quick claim deed the property to transfer title, etc, etc. Real Return Real Estate™ Criteria Approx 50% LTV - we buy properties fully remodeled at half the value Rents are 1.5-3% of purchase - We usually pay around $50,000 for homes that rent for $1000, sometimes rents are 3% of purchase and twice Payment+Tax+Insurance. How do you like that positive cashflow!? Multiple exit strategies - with 50% equity, tremendous cashflow and flexible financing we have unlimited options to make our deals successful and can withstand worst case scenarios. We only do deals we are certain are ‘SLAM DUNK’ or ‘HOME RUN’ deals.
  3. Let’s face it, money does not disappear, it changes hands. So where is it? There is so much money sitting on the sidelines or in investments making little or negative returns. Many of these individuals would love to have a double digit return backed by real estate. Here are some keys to get more Private Money then you could ever need. If you find this information helpful, you can download a Free Guide on How to Raise Private Money at www.realreturnrealestate.com. Pitch your opportunity to everyone – You are not asking for money, you are inviting people to make a great return on their money. The purpose of this step is to get them excited and begging for more information. Usually just an elevator speech and a success story if needed. Do not answer questions, set up a face to face meeting and present your program. Opportunity awaits the savvy investor. Face to Face Presentation – Set up a face to face meeting with all decision makers. At this meeting you can build the most important thing when it comes to generating private money, build TRUST. You can also present using a net meeting if face to face is not possible. Find a great deal, illustrate a win-win, the deal and the risk - Educate interested parties on what is in it for them, the numbers on the deal and how the deal can withstand the worst case scenarios. Play the numbers, all you need is one YES - Do not give up after 3 people, you may need to present it to 300 people before you get the desired results. It is never a bad thing to have people fighting to give you their money. Handle objections, ask for referrals - Learn how to handle objections, anticipate the most common ones. And always ask for referrals. If you are leaving a presentation without a YES you should have 3 referrals. Treat them like your grandmother - Be great to them, not good, great. Also be completely honest and set expectations so you can shatter them.
  4. There are a lot of mistakes that can be made in Real Estate. In fact, many savvy investors still make mistakes or have overcome huge mistakes in their investing careers. The keys are to recognize, avoid, learn and move forward from these potential pitfalls. Here are 6 beginner mistakes when investing in real estate. 1. Speculate – Most new investors follow the herd, listen to the media and buy with the hope the property will appreciate. This is as much of a gamble as hand picking stocks or going to the Casino. Buy below market properties that cash flow. 2. Buy at Market Value – Beginners almost always buy property straight off the MLS for market value. You can find deals in any market and there are always distressed properties. Cherry pick from distressed properties at 70% or less of market value. 3. Fall in love with a deal – Many beginners are guilty of this one. Their first few deals they spend minimal time finding a deal. As soon as a prospect is located, they fall in love and do anything to get that property. Emotions drive the decision, instead of making an informed business decision. Key is to get as many prospects that fit the criteria into the pipeline, filter out the duds and cherry pick only the best deals. 4. Put too much down – Real estate is an OPM or Other People’s Money industry. You should minimize how much of your own money is in a deal. And always make sure you have plenty of reserves to handle any not so pleasant surprises. 5. Only 1 exit strategy – To minimize risk, it is imperative to have multiple exit strategies. If you cannot flip a property you can quickly end up upside down, behind in payments and lose the property and your credit. Instead, buy below market properties that cash flow. That way you can sell retail, wholesale, lease option, seller finance, refinance, even rent and hold. 6. Buy in Warzones – It is wish to buy property at a deep discount. In today’s market you can find huge discounts in many areas with the glut of foreclosures. Do your due diligence. Buying a property for 20K worth 80K sounds like a slam dunk, but not if the property is vandalized multiple times during repairs, surrounded by 20 other foreclosed properties and there is next to zero interest from renters or buyers due to the location in or near a warzone. Make sure there is strong demand from renters and/or ownership in the area. Many gurus make real estate investing sound so easy. News flash, it is not. Many beginners make one, even all of the above mistakes and have a miserable first time investing experience. Whether you are a beginner or an expert, it is always a great idea to get as many expert opinions as you can. They will make you aware of many potential mistakes and red flags. Play the numbers game and cherry pick from as many prospects that meet your criteria as possible. Also always do extremely thorough due diligence. And finally, happy and profitable investing!!
  5. Financing seems to be the challenge for most investors in the current market. Many have found these guides on How to Raise Private Money very helpful. You can download them for free here. I hope they help!!
  6. When it comes to finding great real estate deals, I am a firm believer that you can find deals in any market and any time. But what is the probability that you can cherry pick from many home run deals have little competition and multiple exit strategies? The best markets allow you to consistently find successful deals, create efficient systems and duplicate over and over. The media has a much different approach in that they look at hot markets speculatively as ones that will appreciate, our approach is much different. To identify markets to invest in it is recommended to have not 1 or 2 of the following, but all 4: Little chance of depreciation, lots of available deals, low competition, multiple exit strategies. Here is a detailed look at Where to Invest many have found very helpful. The formatting of tables and data make it hard to paste the hole article, here is the link to read the entire article.
  7. I am an experienced investor with a proven track record. I have done really high end rehabs, new construction, out of state rehabs, rentals, commercial, you name it. I am finding more deals then I can fund right now but do not know many private investors. Everyone seems to be sitting on the sidelines. I am finding deals 50 cents on the dollar with tremendous cashflow. That type of equity and cashflow result in multiple exit strategies, very low risk and ability to make it well worth an investors time. I am seeking 1-3mil to do cashflow REOs and commercial deals. How would you find these investors? By educating investors on what I do, the deals I have done and what I am offering, I know I can build the trust necessary for investors to step to the plate. I basically want to provide them the information they need to make the best informed business decision. I just need to find investors and give them info on my business plan and what I do. How do you recommend finding private investors? Do I mail to my target? Find Self Directed IRA groups? Are their websites that work such as www.findthatmoney.com or www.gobignetwork.com? I know I can find, do and exit deals. My only challenge right now and with most investors is funding deals. I greatly appreciate any help. -Ryan
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