Rental Property Deals That Will Support You For Life - Real Estate Investing



http://www.joecrump.com/youtube Real estate investment expert, Joe Crump, teaches zero down investing techniques. Learn foreclosures, short sales, subject to, land contracts, multi-mortgage and other creative real estate financing structures. Free newsletter teaches you how: http://www.JoeCrump.com Six Month Mentor Program http://www.ZeroDownInvesting.com Read Joe Crump's Blog: http://JoeCrumpBlog.com/ Read Transcript: These are the types of investment properties I'm personally selling that I think will make sense for you. Let me show you an example of one to help you understand what you can get and why it makes so much sense. Joe: If you have cash to investment, here's an investment that might make sense for you. And, you can buy one or buy three or you can buy a dozen of them from me. I can do any of those things for you. Joe: The goal here is not to sell this specific property (because it's probably going to be sold by the time you see this video) but to understand what you can get and why it makes sense, so let me show you some pictures and some of the numbers. Let's go to the screen capture video. Joe: This is a picture of a property that I bought through an estate sale. It was in pretty good shape when I bought it. I didn't have to spend a whole lot of money on it. But I had about $29,900 into it with all of my carrying costs, the purchase price, the closing costs and everything else that I had into it, then I added $10,000 onto it, and then I sold it to an investor. Now, this is the same kind of property that I would sell to you as well, if you were interested. Certainly, it made a lot more sense for me, because I found it, put it together and got a tenant in there. I had the resources and the manager to find this. Joe: The process of finding this takes some skill and knowledge. Everybody can learn it, but I happen to have it already. The guy that wanted to buy it from me didn't want to put the time in and still wanted to get a good return on his money. I would have had a higher return than him if I would have kept the property. I would have kept the property if I didn't find a buyer and been happy with the return because this was a property that was bought with money out of my Roth IRA, which means I'm going to be able to keep these properties long term or take a profit on them and then turn around and buy more properties, and then do it again. Joe: We sold to the investor for $39,900. It had comps on it in the area for $65,000 to $75,000, so it was a good deal for him. It was certainly an even better deal for me when I bought it. When he bought it, we had a tenant in place and that person was paying $800 a month which comes out to $9,600 gross annual income per year. The taxes on it were currently $584 annually. The insurance was about $594 annually and the property management was 10% of the income which was $9,600$ per month, so the annual profit on this was $7,462. Now if you divide $7,462 by the purchase price of $39,900, you get 18.7% return annually on your property. Joe: There are very few places that you can go to get this kind or return. Now, keep in mind that doesn't include future repairs; maybe a furnace goes out and you have to replace that, maybe you have to put a new roof on it, although you can see form this picture that the roof is in great condition on this. It has aluminum siding so it's going to be in good shape for quite a few years. It had good windows on the property. It's just a good property. I'll show you more picture of it in a second. This type of deal makes a lot of sense. Joe: This investor had to come up with cash to do it. He came up with money that he pulled out of his home equity line. His home equity line was costing him about 5% a year, so he's going to be making about 13% on this. Keep in mind as well, since you're going to have repairs and vacancies in the future, I would figure 1% to 4% of this cash on cash return to go towards that. In fact, he's going to have anywhere from probably around 14% to 18.7% as his real return on investment on this property. That doesn't include if he sells the property, although this isn't a property that you turn around and sell right now -- you're not going to turn around and sell this for $65,000 or $75,000 in all likelihood. Joe: These comps were before the market took a hit. The market took a hit, or at least the comps took a hit because of all of the foreclosures in the neighborhood -- all of these neighborhoods took this hit. ... To read the rest of the transcript, click here: http://joecrumpblog.com/rental-property-deals-that-will-support-you-for-life/

Comments

  1. Great video. Thank you for posting. How can i come across such property listings?


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Visibility: 3017

Duration: 7m 53s

Rating: 18