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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
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