Propstream Academy intro notes PDF

Preview

Summary

information on wholesaling...

Description

Propstream Academy notes Common Real Estate Investment Strategies 3 Major Types ● Wholesaling ● Fix and Flip ● Buy and Hold Real Estate Wholesaling Assigning Contracts ❖ No purchase of property ❖ No transfer of the title ❖ No capital needed Buying and Reselling Properties ❖ Short term loans Fix and Flip ❖ Foreclosures ❖ Auctions ❖ Bank short sales Buy and Hold ❖ Rent will ➢ Cover costs of ownership ➢ Create extra monthly income ❖ Regain investment ❖ High equity Wholesaling ● Assigning contracts ● Reselling properties Typically don’t repair property ➢ Distressed properties can be acquired at below market prices due to the property’s status and the owner’s motivation to sell Assign Contract

Resell Properties

Find distressed properties that are off market

Find distressed properties that are off market

Get property under contract at low price

Purchase property at a low price

Quickly market the property to a buyer’s list

Quickly market the property to a buyers list

Assign contract to the buyer at a higher price

Resale property to the buyer at a higher price

Profit through a contract fee or difference in contract amounts

Profit from the difference in buy and sell amounts

Fix and Flip

● Buy distressed properties and fix them before reselling at a higher price ● Property repairs can range from cosmetic repairs to more intensive and costly repairs ● Distressed properties can be acquired at below market value due to the propert’s status and the owner’s motivation to sell ○ Find ○ Repair ○ Resell ○ Profit Buy and Hold ● Purchase investment properties for rental income ● Distressed properties can be acquired at below market value due to the property’s status and the owners motivation to sell Passive Income

Price Appreciation

Find properties with rental potential

Find properties with rental potential

Purchase property at a low price

Purchase property at a low price

Complete “lipstick” repairs of $5k or less

Complete “lipstick” repairs of $5k or less

Market the property to renters

Market the property to renters

Become a landlord

Become a landlord

Create passive monthly income through rent

Create passive monthly income through rent Sell the property for a profit many years later

Chapter 1 What is Propstream? ➔ Gives the tools to find the right property, at the right price ◆ Create targeted lead lists, market to property owners, find potential buyers, and seal deals The Wholesaling Mindset Know Your Abilities: decide on an investment strategy that make sense for you, your time, and your money Successful Contact Takes Time: property owners should be contacted multiple times and through different methods Surround Yourself With Other Investors: network!!!

Chapter 2 Viewing Properties in Propstream ➔ Address Searches

➔ Full property Information ◆ Details page ● Public record data, MLS date (multiple listing source)

Chapter 3 Searching for Properties in Propstream ➔ Address and APN (assessor’s parcel number) ➔ Street search ➔ County search ➔ City search ➔ Zip code search ➔ Search on the map Target Search ➔ MLS Status: on market v.s. off market ➔ Equity: high, low, or negative ➔ Property and Ownership Preferences ➔ Homeowner’s Situation What Are Quick Searches and Lists? Quickly Target Properties ● Apply to a specific group of property owners in certain situations of find properties that meet specific criteria ○ Will create a list of property owners that might have a high motivation to sell their property (quick lists are pre-created by the Propstream data team)

On market

Bank owned

divorce

vacant

cash buyers

Tax delinquencies

liens

High equity

flipper

Pre foreclosures

Free and clear

Failed listings

auctions

bankruptcy

Senior owners

Vacant land

Tired landlords

Zombie properties

Pre probate How to Use Quick Searches 1. Search for a target area 2. View updates amounts 3. Apply a quick search 4. Add to marketing list Save a Custom Search in a Target Market

1. Find a search market (address) 2. Apply filters 3. Save the search (top right) 4. Name and add details 5. Include and replace 6. Email notifications 7. Save search Save a Custom Search to Use in Any Market 1. Apply filters (don’t search for specific area) 2. Save the search 3. Name and add details 4. Include and replace 5. Email notifications 6. Save search

Chapter 4 Marketing Lists in Propstream Types of Marketing Lists: Property Characteristics

Owner Situations

Distressed properties that need repairs

Previous MLS listing dates and amounts

Number of beds/baths and amount of sqft.

Financial situations like liens, foreclosures, and bankruptcy

Properties that are vacant or non owner occupied

Yars owned, owner location, and tax exemption status

Year built and number of stories

Valuation and equity percentages or amounts

Considerations to Make Before Searching Properties ➔ Choose search market ➔ MLS status ➔ Equity ➔ Property and ownership characteristics ➔ Motivation to sell ◆ Non owner occupied ◆ Failed MLS listings ➔ List stacking ◆ Out of state owners list ◆ Properties with liens list ◆ Failed MLS listings list ◆ Vacant properties list Manageable List

Repeated contract

List size

Marketing budget

Target area How to Create a List 1. Add search criteria 2. Choose properties 3. Add to a list 4. Choose a list 5. View list

Chapter 5 Direct Marketing with Propstream What is Direct Marketing? Market directly to property owners to build rapport and make an offer Strategies ● Cold calling ● Postcards; direct mailers ● In person visits ● Email marketing What is SkipTracing? ● Process of location a property owner’s contact info ● Find an owner’s phone number and email address so you can market directly to them The Contacts Tab After you skiptrace an owner’s contact info, you’ll be able to view their phone number and email in the SkipTracing section. The Campaign Tab You can create custom marketing groups and market them via postcards, emails, and wit free website landing pages Marketing Follow-Ups ➔ Targeted strategies ◆ The owner’s urgency to sell, timeline, and personal situation influence your approach and will differ for each list ◆ Constant contact ● Multi touch campaigns are all about timing follow ups (keep notes on progress and conversations in the “contacts tab”) ◆ Response rates vary ● Owner’s urgency rates depend on many factors ○ Owners urgency and timeline to sell ○ Personal situation an owner is in ○ Owner’s receiving large amounts of marketing from other real estate investors have a lower likelihood to respond ● Manageable list size

○ Ensure your lists are a manageable size for your time, budget, and experience ● Remove old leads ○ Keep list updated and remove property owners that aren’t interested Tips for Cold Calling/Texting Be informed

Don’t overshare

Property details

Rapport first

Be compassionate

Your pitch

Cold calling can be easy, affordable, and a simple first step to take when reaching out to property owners. (to locate an owner’s phone number, you’ll need to skiptrace their information first.)

Chapter 6 Steps to Close a Deal 1. Review the property details 2. Run comps. To get a reasonable offer amount 3. Make an offer with a contract or purchase the property yourself 4. Resell the contract or property to buyers and make a profit Comparables: ➔ Also known as comps, are similar, nearbuy properties, that have recently sold ➔ Based on 4 Data Points ◆ Properties sold within 1 year ◆ Properties within 0.5miles ◆ Properties with similar square footage ◆ Same property type ➔ Add info to be more accurate ➔ Adjust the area in the map ➔ Comp. amounts ➔ Create an offer amount! Assigning Contracts v.s. Buying and Reselling Properties Assigning Contracts

Resale Properties

Find distressed properties that are off market

Find distressed properties that are off market

Get property under contract at a low price

Purchase property as a low price

Quickly market the property to a buyer’s list

Quickly market the property to a buyer’s list

Assign contract to the buyer at a higher price

Resale property to the buyer at a higher price

Profit through a contract fee or difference in contract amounts

Profit from the difference in buy and sell amounts

Assigning Contracts Present the offer to the seller via a contract ● Include a clause that gives the you ability to resell the contract to an end buyer. The end buyer is the person who will acquire and pay for the property. The seller can accept, counteroffer, reject, or let the offer expire. ● The lower the offer amount, the larger the potential profit is when resigning the contract ● If the seller agrees, the property is now under contract Buying and Reselling Properties Acquire Financing Make an informed offer and purchase the property ● Profit is made from the new selling price minus the original purchase price Finding a Buyer and Closing the Deal Cash buyers

High equity

flippers

Free and clear

After Finding a Buyer ➔ Reassign the contract to a buyer ➔ Reselling the property to a buyer

Linked properties...