We are looking to JV!

We offer 50% of the *purchase price.* $100K – $5M (property value should be at least 200k and within 5million. Over $5M is case by case). Buy & Holds only. Closing, legal, appraisal, etc. fees not covered. We’re looking to passively invest. All 50 states.

We prefer commercial or MFH of +5U. Bulk/tape (including SF portfolios) of +5U. No war zones, land or development projects, RV Parks, nor notes. Can do mobile home parks; Townhouses/condos are case by case.

For more info, check out the work with us section.

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Leverage your house to invest, no monthly payments nor interest!

When one wants to tap into the equity of their home, as the image above demonstrates, one usually has 3, main, options, that just about anyone can use:

Option 1: HEL (Home Equity Loan),

Option 2: HELOC (Home Equity Line Of Credit),

Option 3: Cash Out ReFi (Refinance).

Each of these have pros and cons. HELOCs are generally considered the “easiest,” whreas the Cash Out Refi is considered the “hardest,” where the HELs fall in between. What you need to keep in mind, for all of these is that in most, if not all, circumstances, while you will have “cash” for your investment options, you will now have two debts: your original mortgage (or new mortgage, for the ReFi), and your new loan.

Investors will loan you an amount of money—ranging from 10 – 20%–and charge you no interest or monthly payments.

To learn more, visit our No Money Investment Page.

 

Up and coming information!

Summer is here, and we have some up and coming information for you!

We have redone our navigation at 100K Investing, LLC, and have recreated our financial information section.

We have included information about Self-Directed IRAs (SDIRAs), as well as SoloKs. These options that have some similarities, in regards to your investing options, but also, distinct differences. The most distinct difference being the SoloK is primarily available if you own your own business, and the only full-time employees are yourself and spouse; SDIRAs are open to anyone.

We will be looking at having a series of monthly workshops throughout Spokane County, to help educate the community about these options. In addition, we will be looking at holding a series of webinars, to provide information to people outside of our local community, to help open up the opportunity for them to learn about investment options.

Please note: at no time, during these workshops, will deals of any sort–businesses or real estate–be offered. These workshops will only provide information, to help you with performing your due diligence.

Getting Started In Investing? Passive Investing?

Real estate investing is NOT easy. If it was, there wouldn’t be all these gurus and infomercials selling you “education.” They would be doing real estate. So do both, but many sell you stuff, and sell, and sell…I’ve “been there, done that…and lost the film rights!” Ok, maybe not that last, but it seems so!

There are a ton of areas in REI: bird dogging, wholesaling, fix & flip, land, rentals, single vs multifamily, commercial, notes, short term rentals (Air BnB), and on. All of these, except for bird dogging, and maybe, if you do the deal great wholesaling (or lease option/wholesaling), you need green, and I’m not talking about paint, for the flippers, either!

You can go the way of hard money, and if you have the money for your “skin in the game,” a lot of successful flippers do so. I know of one HML which offers 100% funding. I have NOT used them, so cannot say anything about it, but wanted to point out the resource.

Also, if you’re looking to wholesale properties, and don’t want either party knowing what you’re making (suggested if you’re going to make between $5 – $10k, or more), then you may want to try Transactional Funders. Same rule as above, in that I haven’t used all of them.

But maybe, you’re wanting to go more. Maybe you’re tired of getting deals under contract, but having to let the deal expire, because you can’t get a buyer: they don’t have funds this month; it’s in the wrong zip code; it has a pool, and they don’t want the hazard, or many other options. For that, you need Private Money, which I loosely define as money not from any sort of institutional lender, “bank alternative,” or someone soliciting you on a real estate social media platform. If the terms and figures seem like Hard Money, then it’s Hard Money, by another name.

The best option for REI, IMO, is networking with others, presenting a large, unified front, to find private money. One of the best sources, is Self-Directing IRAS. If you’re unfamiliar with them, then watch this short video.

We’re looking to network with other real estate professionals, no matter your experience level. If you’re interested in working together for mutual benefits, please contact us.

Updates and Corrections

Corrections

I appreciate those that have reached out to me, to let me know that some of the email forms weren’t working, on both the cash buyers and JV-wholesale forms. I’ve removed the pages, and opted for a simple contact page, with appropriate phone numbers and emails. There were a few other faulty links and pages, which have now been fixed.

Updates

The opportunities section (eg, co-wholesaling), and the identity theft are now under the About Tab. There’s the About section (click About to go to that part), Opportunities, and ID Theft.

We will probably be removing the Factoring Section, shortly, as it’s not in line with our main focus of real estate investing.

We’re now relaunching our Lease-options opportunities, with a focus on JVs with other investors looking at the L-O arena (four sections; click on the Lease Option tab for more info, regarding LOs).

A List Of Transactional Funders For Real Estate Wholesalers.

A List Of Transactional Funders For Real Estate Wholesalers.

I have uploaded this list of Transactional Funders via Google Drive. You should be able to read it right from the drive. Let us know if you have a problem downloading it, if you wish. If you don’t have Excel, and want to view it offline, without Google Drive/Dox, I suggest looking for a freeware version of the software, such as Libre Office, which is what I made this in. Other Free/Open Sources include Open Office, or some other choices for you.

Based on their data, which I’ve placed in this sheet, Lima One Capital is probably your best option. They have no extra fees (processing or wire) and have a 1.75% interest.

Straight Line has a lower interest rate, but don’t work in all states.

ICF doesn’t work NY or GA, so if you’ve deals there, you won’t be able to use them.

There are 3 that are nationwide. However, they charge processing or wire fees. You may find that one of these others are better suited to you, and you may develop a good rapport. Some companies, when you do a certain number of deals with them, or in bulk, offer better terms; it never hurts to ask!

These are not the only Transactional Funders; just the ones I’ve come across at the time of this writing. Most, and possibly all of these funders will cover the closing costs, so when you present your cash offer on your deals, which you’re doing as someone with a transactional funder, you can also tell them you’ll cover closing costs. However, issues like back taxes, liens, etc. may not be covered by transactional funding. It will be something that you’ll need your end buyer to be aware of.

Terms For Investing And What They Mean

Terms For Investing And What They Mean

In the last post, we looked at some of the ways to invest in real estate. This included auctions, REOs, subject to, and Lease Options. Here, we’ll go over some more terms, what they mean, and as applicable, elaborate on them.

The ARV, Comps, and 70% Rule.

When you get involved in REI for any length of time, especially with SFH, you’ll come across “The 70% Rule.” What this means is that you find the ARV (After Repair Value or Approximate Retail Value), sometimes called the Fair Market Value of the subject house. Boiled down, the ARV is what the average cost of similar sold houses in the area, and are a guide for what your subject house may sell for. Remember, REI is an art, not a science. “A house is only worth what someone will pay for it.”

How do you find similar homes? These are your comps. Generally, you want 3 – 6 homes for your comps. Two, generally, aren’t enough. Anything more than 6 is generally going over board. These are only houses that have sold; houses that are still for sale are not accurate, as their final sold price may be vastly different. The guidelines are as follows:

  • The houses should have the same number of bedrooms and bathrooms. Often, you may not have houses that match the same number of beds and that. In these cases, the first number you adjust is the bathrooms, going no more than 1 more, or 1 less. After you’ve gone through your comps, and if you still lack enough comps, you adjust the number of bedrooms, 1 up, or 1 down. Again, this is a guide.
  • It is preferred to find the comps that are those that have been sold within the last 6 months. In bigger cities, like NYC or LA, this shouldn’t be a problem. However, in say, Plummer, ID, this may not work. Then, you may go back 9 months. While you may go back 12 months, the comps aren’t considered as accurate, because “the market changes.” But, if you’re in a smaller market, it may still hold.
  • The next guide is that of a property that is no more than 1 mile from your subject. Property values can change within a few miles, and sometimes, even in the same block. While some prefer 0.5 miles, you may find yourself having to go out 1 mile. In other cases, you may find yourself having to go out 1.5, or even 2. Similar to the 6 months time frame, the further out you must go, the “less accurate” your comps can be.

Another option is a CMA, or Comparative Market Analysis. This is done by a real estate agent. It can provide more accurate details than the ARV, and can include a BPO, or broker price opinion.

All of this helps you determine your MOA, or Maximum Offer Amount. Once you have the ARV, this isn’t what you offer the seller, or else you won’t be able to turn a profit. The 70% rule is that the most you’ll offer someone is 70% of the ARV. For simple math:

  • You have a subject property, and are using 3 comps.
  • Each of the 3 comps sold for $100,000.
  • Your ARV is $1000,000 (3 homes X the sold price of $100,000 = $300,000. Divide that by your number of comps, and you have $100,000).
  • 70% of your ARV is $70,000. That is the most you offer, but that’s mainly if you’re flipping. You also need to take away your estimated repair costs. Then, if you’re wholesaling, you need to subtract your wholesale fee: anywhere from $2K – $10K. You can do more than $10K, but at that point, you don’t want to assign the contract (some say not above $5K). Instead Transactional Funding is what you’ll most likely want to use.
  • Often, it’s suggested that you offer be 65% of the ARV, or even 60% of the ARV. The deeper the discount, the better your options.

How To Find Your Comps.

There are a number of sites that you can use to find your comps. Some are easier to use then others. There’s Zillow, Trulia, Realtor, Redfin, and others. When you enter your subject property into one of these site’s search box, in many of them, you may see the site’s estimate, such as Zestimate. However, these aren’t considered accurate, and if you present the Zestimate to an investor, they’ll reject the deal, then and there, and probably won’t look at any future deals. Use these sites to find comps, as outlined above.

One option others may tout are sites and banks “Value Calculators.” Some include RE/MAX,Bank Of America, or Chase Manhattan, which show prices of homes in the neighborhoods, their BR/BA (bed/bath), etc. But just like the Zestimate, these can also be off the mark. Thus, the art of running comps, to try to get a more accurate value of the home.

A few sites include Real Estate ABC, Find Comps Now, or REI Kit. And as you read above, even the ARV is an art, not a science. For one thing, not all of the sold comps can be listed, in which case you need access to the MLS, which isn’t free. If you’re not a real estate agent, broker, assistant, or like, you may not have access to it. Some sites do provide access to the local MLS, but not all do. So, while a CMA, with full access to the MLS, and all properties sold, will tend to be more accurate, until or unless you develop that sort of close relationship with someone who can provide access to the MLS, your options are the creative art of the ARV from the above sites, and to remember to estimate on the side of caution. Estimate higher repairs, for example.

In the next post of this series, we’ll outline some transactional funders.