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| Before you look at the testimonials, download this doc here. It is printed below. The following doc below is a ROAD MAP to get started with www.brian-gibbons.com If you want to plan yourself or use another mentor, be my guest! We only care about planning for success, either with us or someone else! My Plan
Personal Goals, your health: Mental education: Spiritually: Family, you and your family: Vacation, travel plans: Fun, hobbies: Monetary, Career: Charitable goals, helping others: CURRENT JOB Monthly income: Annual income: Current savings: Current expenses: Job satisfaction: 1-10: CURRENT CREDIT: Excellent Good Fair Bad INVESTMENT SAVINGS Car IRA:$_____________ Employee programs:$_____________ Cash: $_____________ Stocks/bonds:$_____________ Avg. yield: _______ % Real Estate: $_____________ Other: $_____________ YOUR PERSONALITY TYPE Analytical Love to deal with people Love to work with numbers, programs Love to work with hands Love to be alone Great with big picture Great with details AVAILABLE AMOUNT OF MONEY TO INVEST IN REAL ESTATE (Remember to keep a cushion) Cash: Do you have financial statements (net worth, etc.) drawn up now and are they current? Banking relationship: Can you walk into your bank manager's office and talk about your current needs? Income goals: Cash flow for real estate wealth accumulation - WORKSHEET Annual Income Annual Income Actual Annual NEEDS GOALS INCOME
Current 1 year 2 years 3 years 4 years 5 years 10 years 15 years 20 years Free hours, or hours available to spend on real estate weekly: 1-5 6-10 11-20 21-30 31-40 41-50 51-60 61-70 71-80 MY PLAN Little or no capital/credit requirements 1. Flipping Look at 20 houses; Lock-up 3; Flip 1; Average flip: $3,000-7,000 2. Lease Optioning Call on 20 houses; Negotiate with 4; Lease Option 1; Average monthly cash flow: $200-400; Option profit: $500-3,000; Beware of repair and vacancy 3. Sandwich leasing Call on 20 homes; Negotiate with 4; Sandwich lease with 2; Monthly cash flow $100-400 4. Mortgage Brokering Search, advertise for mortgages; Find 2 decent ones; Close on 1; Average brokerage commission: $1,500-5,000; May need license
Research local rules; Find investor, bid at auction for investors; Can be complicated; Liability can be high; May need license, though you could make substantial commissions and find great deals to flip. 6. Private Money Brokering (may need license) Find lenders; find good loans; 1-5% spread a month; 1 -1O points up front Example:Broker $40,000 loan (11-1 3%, 15 year loan) 7. Flipping with taking back a note or cash and a note Flip property; take back a second mortgage as your “commission”; Cash and monthly income. 8. Real Estate Agent - Commissions Average commissions on a sale are 5-70%; You may have to split commission, plus pay your brokerage 20%-70% of your commission; Sell a $100,000 house with a 6% commission and you earn $6,000; May have to split with other agents and your broker. (Need license) 9. Consulting Consult with investors, retirees, non-profits, governmental agencies, real estate firms, estates, attorneys, CPA’s, financial planners, give seminars; Promotion costs may be high; Your fees $35-200 per hour or commissions, flip potentials. 10. Property Management Need legal entity; Bank accounts, computer (preferably); Liability insurance $800-2,000 annually; Receive 8%-11% of rents collected monthly; May keep late fees, charge tenants $50-150 application fee; Charge $50-150 lease renewal fee; Charge for, and own your own maintenance company; May need to be a realtor; Profits come with volume. 11. Maintenance Company Make ready empty units; Apartment “get ready”; Fix-up/clean apartments and houses; You can do it or a sub-contractor; $8-1 0 hour or by the job; Painting, carpet cleaning, rehabilitation, landscaping; 12. Contract for Deed/Lease Options May be able to negotiate for little or no money down; You can control property, lease/option or contract for deed for more money per month; Get option/deposit money up front. Example: You can lease/option or contract for deed a house for $40,000, with $500 down, $4OO a month for 20 years. CASH, CAPITAL AND/OR CREDIT MAY BE REQUIRED 1. Buy, rehabilitate, and sell Need purchase money; May get owner's terms; Need money for repair costs and holding costs; Average rehab should net you at least $12,000 or about 30% of retail sales price; Alternative to cash: use investor's money, partner the deal, equity sharing, or use credit lines. 2. Buy and hold real estate May need cash for down payment and repairs; great wealth accumulator; Great cash flow each month; Rule of thumb: a single family house should have a cash flow of at least $100-150 per month before vacancy and repairs with a 65%-75% loan on it. Duplexes should cash flow about $200-400 month before vacancy and repairs. 3. Buy and create paper by creative selling You need cash or credit to buy and fix-up. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
