Cash Flow Investor

I just read an article about new home buyers. According to a study released on Saturday from the National Association of Realtors. According to the survey, first-time buyers sales rose to 41 percent from 39 percent of all transactions in 2007.

“First-time buyers are more flexible because they aren’t concerned about selling an existing home,” National Association of Realtors Chief Economist Lawrence Yun said in a statement.

According to the study, the median age of first-time buyers was 30, down from 31 in 2007.

The median income for a first-time buyer was $60,600 and typical first-time buyers bought homes costing $165,000. 

This is perfect for Philadelphia because home prices in many neighborhoods are lower than $165,000. You just need to use creative marketing to find the right buyer.

I havn’t written on this blog in a while, time got away from me somehow. I wanted to update everyone on what I’ve been up to but before I do let me explain why I havn’t posted. Over the last few months my family ha been buffetted with what seemed like never ending bad news.

Along with an uncle passing, in July my only child (a girl, women) passed after a year long bout with cancer. Her cancer was persistent but she fought as hard as possible. Naturally, the loss devasted me to my core.

Some of you knew and I want to express my gratitude for your generous condolences, so many people provided so much support and I am grateful.

There has been one great and important life lesson. Live Your Life period. Don’t wait, don’t delay, Live your life today,

So, thats what I’ve decided to do. Live my Life.

Thanks to everyone for their support and love. Live Your Life

Dwight

BTW.

Many investors that buy 3/1 homes eventually want to move up to larger investment properties. Buying larger properties isn’t tremendously difficult but does require more due diligence and that you learn some additional terms.

One of the most overused terms is cap rate . So, lets define cap rate and how it is used to determine if a property is a good investment.

The cap rate is simple, divide Net Operating Income (NOI) into the sale price. Thats the cap rate.

For example;

If a property has NOI of $100,000 and the sale price is $700,000 the cap rate is, NOI divided sale price so the cap rate for this property is 14%.

But what does the cap rate mean and how do you use it to determine if a property is a good investment.

But first what is cap rate, my research says that the cap rate is the return you would get in one year if you purchased the property with cash. So while cap rate is a good starting place for determining rate of return when financing a purchase, most people don’t buy large properties with cash so you need more info.

Our first tour was a phenomenal experience. Everyone learned so much about multi family housing including how to determine price, how to finance the purchase and how to find and manage great tenants. The tour was fun and educational and we are looking forward to the next one.

Not only did everyone learn a lot but they also made tons of money. Out of 4 people on the tour, 2 have already bought themselves $70k in equity.

One of our investors decided she wanted to buy a deal and we negotiated a deal with her where she immediately go $38k in equity. Unlike other real estate deals where you have to wait for repairs,we negotiated with the seller to make ALL REPAIRS before settlement and the seller has allowed her to advertise for tenants before the sale. This very smart investor on the day she settles will have two paying tenants and $32k in equity. What a deal. She will own 30% of the deal at the start and boy is she excited.

This is the type of excitement and opportunity we wanted to create. It’s also why we haven’t done all the numbers because once we have a buyer we are able to negotiate with the seller for the best deal.

So, if you want to learn more about multi family investments (triplex, quads, sixplex and up) we are offering a F.R.EE tour on Friday, May 23rd at 10am. We are only able to have 4 people on this tour and we will duplicate our previous tour, (triplexes, six-plex etc). You can meet my team, ask questions and learn valuable investment tips. Email TODAY to reserve your space for this special FR.EE opportunity.

Here is a list of current deals and many, many more to come.

Everybody remembers Mickey, Rocky Balboa’s original trainer, the guy that busted Rocky’s butt and helped him win a championship against Apollo Creed. Apollo Creed’s original opponent got hurt and Apollo decided to fight Rocky because he liked his name the “Italian Stallion”. Rocky decided to have Mickey train him. Mickey was a former bantamweight fighter and frankly a old cranky man.

But he was a good trainer. He busted Rocky’s butt, made him do things he needed to do to win and they became champions.

Thats our role. We are fight trainers, we work with our investors while they are in the game. Round by round we help our investors understand the investing game, doing our best to help them reach their goal, positive cash flow.

Thats what we do, round by round, help you get to your goal, POSITIVE CASH FLOW. So in many ways we are like Mickey.

Join us on Friday, email and register for our FR.EE tour and learn how we can help you reach your goal. Round by Round

Some of the investors we worked with expressed frustration with finding cash deals in Philly. You know, they’ve walked thru all kinds of single family homes and one of our investors asked about multi’s. Around the same time, we found a treasure trove of multi’s mostly in West Philly but all around Philadelphia.

The investor that asked about multi’s had never been to a multi family investment property. he had never seen how the systems work (in a triplex for example), he didn’t understand how the utilities worked, how you needed a built in fire alarm (six plex) or how to rehab the properties so they are profitable.

So we took him to some of ours and when we explained our strategy he was amazed. All the fear of investing in multi’s was removed because he understood the economics. Also he know that we would work with him to help him achieve his goals.

He knows that our team would be able to properly rehab the property, he knows that our team was competent in finding great deals, doing good rehabs and finding great tenants. He knew all of this because we’ve worked together and my team was willing to take the time to explain how our system works.

Now many of you know me as the “systems guy” and investing is a system. You need to assemble a good Realtor, a good contractor (that does what he says when he says, for the price he quotes), they need to find  someone who understands Philly tenants and how to find, screen and get them moved into your property.

Our investor understands that there are two ways to find this team, build it yourself or partner with an existing team and he has chosen to take the short cut to his goal and partner with an existing team.

Long story short, thats how we started the tour and on Sunday, we took a few investor out as a trial (after we took our original investment partner). We spent three hours together explaining multi family investments and bottomline, they got it.

These investors have chosen to work with us and we promised to help them meet their goals. They know we are available, working everyday in the investing business to help our partners.

So, if you want to learn more about multi family investments (triplex, quads, sixplex and up) we are offering a F.R.EE tour on Friday, May 9th at 10am. We are only able to have 4 people on this tour and we will duplicate our previous tour, (triplexes, sixplex etc). You can meet my team, ask questions and learn valuable investment tips. Email me TODAY to reserve your space for this special FR.EE opportunity.

But have not considered some of the advantages of  multi family investments. Here are a few great reasons to consider including multi family investments in your investment mix.

Also, at the end of this post, there is a very valuable opportunity to learn the multi family investment game, so read the entire post. Here are some reasons to invest in multi’s

1. Cash Flow – there can be more cash flow owning multi’s and the cashflow is generally less risky because you have more rents under one roof. If you lose a tenant in a single family house, you lose all of your cash flow but in a triplex or quad you still have  rents (which should be enough to cover you cost). So you risk is reduced because there are more rents under one roof.
2. Less Competition – this is a no brainer. If your buying single family homes you know how difficult it is to find great deals and there are fewer people teaching investors how to invest in multi family homes. We recently took some of our investors on a tour of our available multi deals and when they left they said they learned more with us that day than they had in a year of investing in single family homes. They learned the secret of to not having an issue with PGW. Specifically, how to avoid even the possibility of having a PGW lien place on any of their investment properties and much, much more. The reason they learned so much such was because they were out with fulltime investors with many years of experience and they shared their wisdom. (The power of having a GREAT TEAM)
3. Lower Maintenance Costs – in a multi, there is one roof (generally) one basement, one lawn to mow, one sidewalk to shovel and in todays world with gas prices hitting $3.70, you visit one property not spend money riding around the city to see your investment properties.

Thats just some of the reasons for investing in multi family deals but here is the deal. We have decided to help a very limited number of people understand multi family investments. We are going to offer a Friday morning mult-family tour to only 4 qualified investors on Friday, May 9th. This tour is first come, first served and it is F.R.E.E. Or only request is that you have the ability to but a deal from us if it fits your investing goals.  Those are the minimum requirements.

If you are qualified, email me as soon as possible. This tour will be scheduled on a Friday morning May 9th, from 10am to 1pm. It will include a tour of a 2 triplexes and a 6 plex. We will have a team ready including a my very experienced and reliable contractor, my personal tenant placement specialist and me (maybe ). During the tour we will reveal some important secrets like

• How to reduce costs and increase cashflow
• How to do cashflow rehab in a multi and
• lastly How to find Great tenants that are ready to move in when your property is ready and that pay on time without destroying your property.

During this time, you will have access to my team and will be able to ask any questions of these very experienced investors. If this tour appeals to you and you want to reserve your spot, RESPOND immediately so I can reserve your spot. Remember only 4 (four) investors can come and meet the team and lastly if you buy a deal from us you get access to our team of investors experts that are out working every day.

Email IMMEDIATELY TO RESERVE YOUR SPOT. THERE ARE ONLY 4 SPOTS AVAILABLE

P.S. Perhaps you aren’t ready. If you know someone that is pass this email on and if they buy one of our deals we’ll have a special gift for you.

I recently recorded an interview with an investor and got a chance to talk about our business process and how we find, manage and profit from properties. Our company specializes in getting investors to the money, within their budget. We have discovered some secrets to investing specifically in Philadelphia (like how to avoid tenant liens) that we reveal to investors that work with us. Listen to this interview and discover the power of our business and the expert team we’ve created to help you create cashflow

Dwights-interview

P.S. My next post will be a very special offer to a select group of investors to meet our team and get a real education about investing in multi-family properties.

I have been away awhile, havn’t posted in a long time but “Baby I’m Back”. My life has been a series on song lyrics, “Been such a long time” is the opening lyrics to a song by the Ohio Players and “I’m Back” are the lyrics to a James Brown song. As I look at my life, I could use lyrics to describe every aspect of my life. Soooo, I’m back to see if there are folks out there.
Been busy though and now have a satchel of investment properties. including a  large group of multi’s for sale in all areas of  Philly.

It ’s been a massive job getting these deals together and will be offering 12 million dollars worth of rental units  including duplexes, triplexes quad’s and bigger multi’s. I are offering two deals in West Philly now and many more to follow (obviously).

The first deal is on St Bernard St, is a duplex, less than two miles from University of Pennsylvania. This huge University City property is an instant cashflow deal.This duplex has three floors. The first floor has a two bedroom apartment currently renting under market for $550 and a huge bi-level 1 bedroom with a jacuzzi currently renting for 500. There is $4K in the rehab to make some improvements and the investor will receive all the certifications with the sale. They include roof, electrical, and HVAC certifications.  The property is worth 185K, the total investment is $139K that price includes a wholesale fee of $7500 and a 4k rehab. Because we have so much inventory, this deal is discounted $46k and even with under market rents still has positive cashflow.

The second deal is a triplex on 55th St near Girard. This is a traditional deal, ARV is $190k, Repairs are 80k, the purchase price is $40k. We have everyone in place including a competent contractor (experienced contractor, used to doing big projects). This property will cashflow $510 per month and has a cash-out of $12,500 (25 months of cashflow).

We are in the process of putting together the package but since you responded to our post, you are getting first crack at these two BEFORE they go out to the larger list.

These deals will not last long, are discounted to sell fast and are first come first serve. If you have an interest in any of these two deals reply to this email to get more info. Act quickly!!!

If you have an interest in these or other deals (including larger deals), email me at Dwight@blcsi.com for information and to schedule an opportunity to actually see the deals.

Hope everybody is well and looking forward to hearing from you

Dwight

Are you having a hard time selling you house? Has you house been on the market for months without a buyer that can qualify for a mortgage. Today banks have basically closed the door on many mortgages, it’s harder for a buyer to get a mortgage which leaves the investor stuck with a property, they can’t sell and paying the monthly holding cost.

I’ve talked to a number of investors recently that are in this predicament, hoping and wishing that their realtor for find a buyer. Well in todays market you have to make every option available and an often overlooked strategy is seller financing. Basically you hold the note, either for cash flow (which can be better than rent and removes you from having to maintain the property) or to immediately sell the note and get your cash.

Seller financing is not new, in fact before the securitization of mortgages (basically before mortgages where bundled and sold in buckets to investors worldwide) many homes wher sold with the seller holding a note. The note as usual is completely secured by the property so the risk is about the same risk the bank assumes (assuming you did your due diligence).

Anyway, when you do the math on the seller financing, it isn’t bad (I have a Youtube Vide that shows the math) or you can sell the note at a discount to a note buyer (we can help there).

Here is what you (the investor needs) to sell the note

• Pricing Request Express Worksheet
• Appraisal – preferably within past 60 days (if available)
• A zip file or web link containing least 15-20 interior and exterior digital photos of the property
• Description of property (Realtor listing preferable)
• Description of major improvements in past 18 months, if any (Spreadsheet preferable)
• Accompanying receipt/contractor bill breakdown for each major improvement
• A copy of the original purchase contract
• Copy of title with legal description

Here is what you need from the buyer

• Copy of Buyer’s Driver’s License
• Typed 1003 in PDF format
• Credit report within past 60 days (if available)
• Bank or Securities Statement showing 5% funds available for down payment
• Signed Purchase Contract
• If buyer is an investor, pre-leases signed by tenants for any non-owner occupied units

You basically have the realtor list the property and in the notes include that the you are willing to accept seller financing and then you advertise the property as “Seller Financing, Avoid banks, Credit Checks etc), (If it where me, I’d handle the online advertising) (we can help)

The worst that can happen is the same thing thats happening now, the second worst thing that could happen is you get a list of potential buyers and one may qualify for normal financing and the best that could happen is the damned hose is sold and you get your money. In any case at least something happened.

What’s the definition on insanity (Doing the same thing over and over and expecting a differnt result) do something different

Dedicated to your success and let me know if I can help