WELCOME!

TODAY'S CLASS,

INTRODUCTION TO:

BEFORE

A LITTLE ABOUT YOU:

• :30 Second Elevator Pitch
• Have Any Fix-N-Flip or Fix-N-Hold Experience?
• Any Fun/Scary 'Tales From The Front?'
• Any Expectations For Today?

A LITTLE ABOUT ME:

• 29+ Years In 'The Game'
• Former General Contractor
• Former Banker/Mortgage Banker
• Financed Hundreds of Take Out Loans
• Renovated Hundreds of Units

CLASS-AT-A-GLANCE

• :10 Introductions
• :05 The Learning Objectives
• :50 10 Lessons
• :15 Break
• :45 FixNFlip Analyses & Case Studies
• :45 FixNHold Analyses & Case Studies
• :10 Q&A

CLASS-AT-A-GLANCE

• :10 Introductions
• :05 The Learning Objectives
• :50 10 Lessons
• :15 Break
• :45 FixNFlip Analyses & Case Studies
• :45 FixNHold Analyses & Case Studies
• :10 Q&A

1 WIIFM? WTHAIDH?

• 'Raise The Veil' on This Business
• Better Advise Your Clients
• To Learn The Lingo
• Avoid Financial Damage
• Inspire Your Entry Into the Game?
• ID Money Making Opportunities

2 WIIFM? WTHAIDH?

• 'Raise The Veil' on This Business
• Better Advise Your Clients
• Inspire YOUR Entry Into The Game?
• Avoid Financial Ruin
• ID Money Making Opportunities

HERE'S WHAT YOU'LL LEARN:

• What is a Fix-N-Flip?
• What is a Fix-N-Hold?
• The Imperative of Your Exit Strategy?
• Manufacturing 101
• Capital Velocity
• What Are Raw Materials?
• Who Are The Factory Workers?

HERE'S WHAT YOU'LL LEARN:

• How To Make The Sausage
• What is Vertical Integration?
• 5 Ways To Make Money
• How To Analyzie 1-4 Unit Fix-N-Flips
• How To Analyzie 5+ Unit Fix-N-Holds

KEY TERMINOLOGY

• list terms
• detail definitions in word and paste into ppx

LESSON #1

WHAT IS

THE FIX-N-FLIP

• Real Estate Purchased, Renovated and Sold For a Profit
• 1-4 Units Non-Owner Occupied
• 5+ Units

LESSON #2

WHAT IS

THE FIX-N-HOLD

• Real Estate Purchased, Renovated, Stabilized and Held For Cash Flow
• 1-4 Units Non-Owner Occupied
• 5+ Units

LESSON #3

WHAT IS

THE EXIT STRATEGY

• Is Your 'HOLY GRAIL'
• Know Your Exit BEFORE Entering a Deal
• Homeowner For Your Fix-N-Flip
• Investor For Your Stabilized Fix-N-Flip
• Refinance For Your Fix-N-Hold
• NEVER Accept Market Timing Risk

LESSON #4

WAIT, WHAAAAT?

MANUFACTURING 101

• Yes. Really!
• Market/Deal Analysis & Underwriting
• Raw Materials Go In And Finished Goods Come Out
• Sourcing The Raw Material
• Assembling Your Core Team
• Executing The Project

LESSON #5

WHAT IS

CAPITAL VELOCITY

• Time IS Money
• High % Rehab Loan Must Be Re-Paid ASAP Upon Stabilization
• Lender Wants $ Back To Re-Lend
• You Want To Turn-Off The "Interest Clock"

LESSON #6

WHAT ARE

RAW MATERIALS

• It's The Real Estate, Silly!
• The MLS
• REOs
• FSBOs
• Pocket Listings
• Relationships

LESSON #7

WHO ARE

THEY'RE YOUR CORE TEAM

• The Realtor...You!
• The Rehab Lender
• The General Contractor
• The End Buyer
• The End Lender
• The Tenant

WHERE DO YOU FIND THEM

• The Realtor...You!
• The Rehab Lender
• The General Contractor
• The End Buyer
• The End Lender
• The Tenant

WHY DO YOU NEED THEM?

• The Realtor...You!
• The Rehab Lender
• The General Contractor
• The End Buyer
• The End Lender
• The Tenant

WHEN DO YOU NEED THEM?

• The Realtor...You!
• The Rehab Lender
• The General Contractor
• The End Buyer
• The End Lender
• The Tenant

LESSON #8

HOW TO

1) DEAL ANALYSIS

• What's Your Acquisition Price?
• What's Your Budget & Scope of Work?
• What's The After-Repaired Value (ARV)/Fair Market Value (FMV)?
• Exit By Sale at ARV/FMV
• Exit By Refinance at 70-80% ARV/FMV
• What's Your Go-Forward Cap Rate?

2) PROJECT FINANCING

• Acquisition & Construction:
• Cash or Hard Money
• Post-Stabilization:
• Refinance/Permanent Financing
• For Renters:
• Lease Purchase Option Refinance
• For Buyers:
• Purchase Money Mortgage

3) PRODUCTION

• Do NOT Swing The Hammer
• Hire A 'Mercenary' Design/Build Firm
• Manage The GC
• Focus on Delivery of Keys

4) WHO IS THE CONSUMER?

• The Homeowner
• The Investor
• The Renter
• From Your "Stable"
• From An Agency
• From The Market

5) ARE THEY FROM THE MARKET?

• Via The MLS
• Via Craigslist
• Via Social Media

6) ARE THEY FROM THE AGENCIES?

• CHA Section-8 Program
• CHA Choose To Own (CTO)
• Chicago Low-Income Housing Trust Fund
• IHDA Section 811 Program

7) ARE THEY FROM YOUR "STABLE?"

• 1st Time Homeowner Seminars
• Religious Organizations
• Trade Associations
• Union Halls
• Fraternal Organizations

8) DO THEY NEED A "RENT-TO-OWN?"

• Same Sourcing & Staging
• Pre-Qualification
• Refinance Contract-For-Deed
• >12-Months = Ltd Cash-Out Refi

LESSON #9

What Is

VERTICAL INTEGRATION

• Control Supply
• Control Financing
• Control Manufacturing
• Control Demand
• Control Your Destiny

LESSON #10

How Do I

HERE'S HOW

• At The Purchase of The Asset
• Rehab Loan Brokerage Fee
• Leasing Commission
• At The Sale of The Asset
• Perm Loan Brokerage Fee (5+)

LESSON #11

HOW DO

THREE MAIN FORMS

• Exit-By-Sale Worksheet
• Exit-By-Refi Worksheet
• Fix-N-Hold Analysis

THE EXIT-BY-SALE WORKSHEET

THE EXIT-BY-REFI-WORKSHEET

THE FIX-N-HOLD ANALYSIS

BREAK TIME!

CASE STUDIES

LET'S RUN

CASE STUDY #1

CASE STUDY #2

CASE STUDY #3

CASE STUDY #4

CASE STUDY #5

CASE STUDY #6

LET'S REVIEW

HERE'S WHAT YOU LEARNED:

• What a Fix-N-Flip Is
• What a Fix-N-Hold Is
• The Imperative of Your Exit Strategy
• Manufacturing 101
• Capital Velocity
• What Raw Materials Are
• Who The Factory Workers Are

HERE'S WHAT YOU LEARNED:

• How To Make The Sausage
• What Vertical Integration Is
• 5 Ways To Make Money
• How To Analyzie 1-4 Unit Fix-N-Flips
• How To Analyzie 5+ Unit Fix-N-Holds

Q & A

If You Enjoyed Today's Class, Tell Your Friends!

MORE INFO?