How Do I Become A Successful

Real Estate Investor?

10 Questions You Need the Answers To!!!!

 

 

1)      How do I find the right information I will need?

2)      Where do we find the best house to start with? (Short sales; keep the bank’s losses)

3)      The numbers all work, but I am not a contractor. How do I make sure that the rehab cost will stay in line with my plans?

4)      How do I rehab the house without giving all of my profit to a General Contractor and still go to my day job?

5)      How do I get great prices without giving up quality?

6)      How does a partner help me make more money?

7)      How do I make my money go further?

8)      How do I use my retirement accounts to fund my Real Estate portfolio?

9)      How do I make a cash profit off of my own retirement transactions?

10)  How do I get started with little or no money into my project?

 

Question: How do I find the right information I will need?

Answer: Legacy On-Site Supply brings over 30 years of experience in;

Construction; Hundreds of new homes and rehabs under our belt.

Financing; 14 years of mortgage experience, including 203k (rehab with the buyers mortgage money), USDA Rural Housing (no money down, no PMI, 20% lower payments), Private Hard Money (developed and arranged funding of Legacy’s own construction lending source for stated incomes and customers with credit issues).

Real Estate Offers; We have estimated more than 300 rehabs in the last 15 years, plus our office crew is made up of former realtors and mortgage professionals.

We Have 20 years of Short Sales and Foreclosures Experience To GUIDE YOU THRU!!!

 

Question: Where do we find the best house to start with?

Answer: It all starts with picking a property that you can buy right. Our team; working with local realtors, wholesalers, national banks and private sellers will give you the very best selection of well priced properties to choose from. These properties will be in the right locations for a quick sell or a long term hold. They will have a reasonable rehab cost that makes the project a smart purchase that will generate maximum profit for a reasonable effort.

            Our team also approaches consumers that need to short sell their home to get out from under their mortgage and offers them cash for keys. That is where you would come in. It costs the bank an average of $34,000 to foreclose on a home between taxes, interest, lawyers, county fees, title, insurance, on-site services to protect the building and much more. All that just to get back a house that is mildly to severely damaged (which increases their losses) while still having a bad loan on the books for years. Or they can sell it to you before taking on all of those losses.

 

Example:         $150,000 house

                        -$30,000 for rehab

                        -$45,000 price reduction for damage and quick sell (remember usually cash only

buys rehab houses)

 = $75,000 gross to the bank

                           -$34,000 average cost to foreclose on house

                        = $41,000 net to the bank and two years that the bad loan is on the books.

 

            Or you could offer the bank $56,000 and the seller $4,000. You spend $30,000 on your rehab plus some Real Estate fees and closing costs leaving you approximately $60,000 in equity. You are left with a strong equity position, the bank saves $14,000 in losses and the years of having a bad loan on the books and THE CONSUMER GETS ON THE ROAD TO RECOVERY FASTER  and walks away with money in their pocket. Everyone wins.

 

Question: The numbers all work, but I am not a contractor. How do I make sure that the rehab cost will stay in line with my plans?

Answer: Anyone thinking about getting involved with a Real Estate project should have a thorough estimate of costs prepared by a contractor who is familiar with all types of construction including materials, sub contractors and project management. Then you should add 10% for cost overruns.

            Be very careful picking your contractor. Go to supply houses and ask the guy at the counter. Check your contractor’s references and go see their work! Your contractor can be your best asset or your biggest liability. Make sure they are licensed and insured to do business in their trade or has a long history with companies that are licensed and insured.

IF YOU NEED A CONTRATOR YOU CAN TRUST

Give Legacy On-Site Supply A Call For At 877-889-2112

A Free Analysis of the Rehab Cost for Your Purchase.

 

Question: How do I rehab the house without giving all of my profit to a General Contractor and still go to my day job?

Answer: Going it without a General Contractor takes a knowledge that is years in the making. You should not try rehabbing on your own.

            Either pick an equity partner that gets paid on the results and skills they bring to the table or pick a very strong lead carpenter and let him guide you through your project. You cannot do without experience to save money without taking losses on your project. Experience in construction is knowledge paid for with someone else’s money. We all learn from our mistakes but in this business mistakes cost a lot of money.

Legacy On-Site Supply can provide the crews and materials you need to get through the mechanics of the job at huge savings to help you keep more of the profit in your pocket. Or we may be willing to join you as a partner in your rehab project, lending you all our expertise at wholesale prices or labor and materials that reduce your rehabbing cost by a third and prevent bad crews from doing damage that costs you thousands of dollars in addition to lost time doing the work again.

We know what you need to know!

 

Question: How do I get great prices without giving up quality?

Answer: Know the specifications for your materials and/or services needed then shop around or use our volume and extensive supply lines to get top quality at low prices. Buy wholesale!

            We have wholesale suppliers in windows, kitchens, installed carpet, hardwoods, countertops, gutters and garage doors. Plus we get volume contractor pricing on everything else you need to rehab your home. Check out our website at www.179installed.com or we can come out and give you a free quote. Here are just some of the savings you will get through Legacy On-Site Supply.

 

 

Legacy On-Site Supply and Services

877-889-2112

. On-Site with better products and bigger savings!


~A better vinyl replacement window at $50.00 less than the big guys & ready in half the time

~Our all-wood kitchen cabinets are half the price & to you within 3-5 days

~Formica and granite counter tops 40% less

~Most Major brands of appliances at TREMENDOUS savings.

~We can save you thousands on hardwood, laminates & tile for flooring and bath


 

~ Installed carpets at 25% below the Big Guy’s prices

 

www.179installed.com

 

 

Question: How does a partner help me make more money?

Answer: Equity partners are a great way to find deals without a bank while gaining knowledge from partners who have a stake in your profit margin.

            Rather than pay a lending fee to a hard money lender, keep more of the profit by working with other Real Estate investors. It gives you more buying power and a higher percentage of profit. Bringing in your contractor as an equity partner is a great way to ensure the crews on site are being kept in line and sub-contractors cannot talk their way around your lack of experience. Being partners with your construction company allows you to enjoy greater write-offs and the ability to draw cash profits from your IRA funded transactions. (Generally you cannot take profit from your IRA projects.)

            Legacy On-Site Supply does enter into equity partnerships. This service will allow you to have all the expertise of Legacy On-Site Supply at a price lower than what most of your customers would pay trying to go it alone. We earn our paycheck and run everything for you.

            Example: A house worth $150,000 needing $30,000 in rehab will cost $60,000 in a short sale. Add $5,000 in Real Estate and closing fees and your net is $55,000 in equity if all goes well. We will reduce your rehab cost to $20,000 making the total equity position $65,000. Using a sale price of 85% of the value ($127,500) minus the costs to purchase and rehab ($85,000) leaves $42,500 in profit to our partnership which is split 50/50.

            For our part we cover our cost by reducing labor down to wages and by getting you large builder discounts.

 

We also save you thousands by keeping your job running RIGHTand PROFITABLE

 

We pay for ourselves through the assets and skills we bring to the table.

 

How Valueable Is A Experienced Guide?

 

Question: How do I make my money go further?

Answer: We are going to start with our least favorite of the funding choices out there, hard money lending.

 

Hard Money Lenders; We consider this to be a very expensive way to get the funds that you need to get started on building your real estate portfolio. Hard money lenders will generally lend 60% of the purchase and rehabbing cost and have rates between 8% and 14% with points up to 6% of your total loan amount.

Funding Partners; By joining forces with like minded investors, you can keep the hard money lenders profit in your transaction, which will reduce the cost of your project substantially while opening the doors to many more real estate opportunities that are not within your lenders guidelines. Our office keeps a running list of people looking to partner in real estate transactions; you are welcome to join that list.

IRAs and solo 401Ks; This is the process by which you are able to take your IRA and 401K that can be rolled over and put them into a managed LLC that can borrow based on assets while earning your retirement fund tax free profits.

Long term non-owner-occupied loans; If you are not using retirement funds or are not planning on selling your property in under a year, you may want to consider a traditional local bank loan on a n/o/o rental property which would allow you to purchase properties from your 401k for long term holds that you want to draw ongoing revenue from.

 

Question: How do I use my retirement accounts to fund my real estate portfolio and increase my buying power by 150%?

Answer: Although this is a broad question, painting in broad strokes we will set you up with a service that will consolidate your IRA and 401k into an LLC to function as a self-managed entity. That LLC can now buy and sell real estate or lend to you for a real estate purchase and all profits that are earned by this entity are tax deferred incomes placed directly into your retirement account. We can also get you a 150% loan against your retirement fund to take your 80k retirement account and leverage it to 200K in real estate buying power.   

By using this method and starting a solo 401k you also increase the level of contribution you are allowed to make into your retirement funds. Your solo 401k automatically allows you to invest $17,000 of your profit into your retirement. Plus you are able to add 20% of all profits that you generate from your self-employed efforts in real estate. If used properly, someone making $50,000 per year would invest $17,000 annually into their retirement fund, write off approximately $13,000 as business expenses and then add 20% of the remaining profit into the retirement fund, leaving you with a taxable income of $16,000 and a tax rate below 5% of your total income.

 

Question: How do I make cash profit off of my own retirement transactions?

Answer: By all guidelines concerning IRA and solo 401K you are not allowed to take any of the entities profits, so the only way for you to make profit off of the rehabbing projects that you take on is to partner with a construction company that allows you to share in their construction profits. This company would have to have exceptional pricing for you to be able to legitimately profit from the rehabbing of this home. A normal transaction for a $150,000 foreclosure property can generate 12-15% of the total cost of the project into your half of the construction company. Please keep in mind you are not allowed to own more than 50% of the real estate entity or you are disqualified from working on your own projects.

 Example; $150,000 house would have a cost to obtain and rehab of approximately $60,000 for the purchase and $67,500 for the rehab. The sale price would be $127,500 with a hard (actual cost) of $85,000 leaving a profit of $42,500 allowing you to take your half as cash from the transaction. The remainder of the equity and any appreciation in value over time would go to you, your 401k or the new buyer that you sell to for the purposes of cashing out.

 

Question: How do I get started with little to no money in to my project?

Answer: Everybody talks about and hopes for a way to make money in real estate with no money down. Although there are a few different ways you could attempt to achieve this, somewhere down the line there is always a need for down payments and operating capital. So I will give you these two choices to get started.

     Choice 1; If you are working with a small amount and you wish to be an investor, we invite you to join our project pool where small investors join us and other investors in purchasing, rehabbing and reselling investment properties. The percentage of the profit you receive will be directly proportional to the percentage of funds you contribute.

For those of you that have absolutely no money to bring to the table we offer you the following option.

 

     Choice 2; Legacy On-Site Supply will allow you to bring our investors houses that are up for short sale. Each house pays you $750 upon a successful transaction. We will also offer you 20% of Legacy’s profit as a finder’s fee on all material and construction service purchases made through our supply house. As you bring more of these projects you are welcome to make use of all of the various programs we offer and earn your way into being a real estate investor and funding your retirement.You are also encouraged to charge a finder’s fee to the people that you bring deals to. This also helps you make a profit on your real estate referral.

 

 

It is the goal of our company to run the most profitable project that can be run. Our primary focus is on the bottom line and finishing the job in an expedient manner. Whether you would like to use us simply for our variety of services or you want us to run the project as an equity partner, you will find customer service to be our greatest focus and knowledge of the process to be our greatest tool. Please feel free to contact us with any projects you would like us to review.

 

 

All Products and Services Are Sold Separately Please Feel Free To Use What You Need!!!!

 

Legacy On-Site Supply

877-889-2112