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01REKI WORKBOOK FOR REAL ESTATE INVESTING
workbook for real estateinvesting
By Real Estate Knowledge Institute
realestateki.com
02 REKI WORKBOOK FOR REAL ESTATE INVESTING
03REKI WORKBOOK FOR REAL ESTATE INVESTING
for signing up for a Real Estate Knowledge Institute (REKI) investing class. Now is the perfect time for real estate investing. Why? Interest rates remain at historic lows, good deals are everywhere, and it is easy to get started, especially with a REKI course.
Of course, in order to take advantage of the timing, you are going to need to understand the ins and outs of real estate investing. You are going to have to look at the numbers and do your homework. You are going to have to find the deals that make sense. If you do these things, then the timing is just right.
You’ve chosen one or more of the following REKI courses so that you can find the right deals, complete your due diligence, and crunch the numbers:
1. House Flipping
2. Foreclosure
3. Commercial Real Estate
4. Wholesaling
5. Tax Lien and Deed Investing
Once you’ve completed your course(s), you will be well on your way to the financial freedom you’ve been dreaming of.
Each class provides hands-on activities to help you gain real-world experience. The methods discussed in class are used every day by successful REKI professionals. Whether you want to invest in foreclosures, flip houses, or build a team, we can show you where to start. Throughout the course, REKI professionals will:
I’ve attached your course outline and look forward to working with you throughout our educational sessions together. Please let me know if you have any questions or concerns.
Thank you,
JOHN TRAUTMANCo-Founder, Real Estate Knowledge Institute
Thank you
y Provide you with professional support
y Teach you investment strategies for various markets
y Help you understand a wide range of real estate investing categories
y Give you the knowledge needed to find opportunities in any market
y Sharpen your skills
y Increase your real estate investing tools
y Provide hands-on learning opportunities
y Give you access to real estate investing resources
y Show you how to analyze markets
y Explain many financing methods available
y Show you how to calculate ROI
04 REKI WORKBOOK FOR REAL ESTATE INVESTING
07House Flipping Course Outline
11Foreclosure Real Estate Course Outline
12Commercial Real Estate Investing Course Outline
14Wholesaling Course Outline
16Tax Lien and Deed Investing Outline
C ntents
05REKI WORKBOOK FOR REAL ESTATE INVESTING
the best investment on earth is earthLOUIS GLICKMAN
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06 REKI WORKBOOK FOR REAL ESTATE INVESTING
landlords grow richer in their sleepJOHN STUART MIILL
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07REKI WORKBOOK FOR REAL ESTATE INVESTING
SESSION 1 y Administration Information y Building a Relationship y Investing Process Overview
• Steps• Fundamentals of Flipping
y Resources and Tools - Basic Walkthrough y Three Types of Opportunities y Creating a Property Profile y Understanding the Market and Finding Your Farm y Finding – Start with Realtors Overview
SESSION 2 y Evaluation and Comps – Walk-through Evaluating Numerous Properties
SESSION 3 y Funding
• Everything needed to find viable funding sources.• Proof of funds and sources
y Networking - Spreading the Word y Investor Clubs – Walk-through Finding Local Clubs
SESSION 4 y Running the Numbers – Walk-through Running the Numbers on Actual Deals y Offers y Guide on Basics of an Offer-Help to Utilize Realtor to Put Offers Out
SESSION 5 y Due Diligence
• Full Inspection• Verifying All Numbers
y Title Searching y Scope of Work – Detailed Estimate of Labor and Materials from Contractor y Closing the Deal – Work with Realtor and Title/Escrow y Investor Packet – Creating an Effective Packet for Lenders/Investors
House Flipping Course Outline
realestateki.com
08 REKI WORKBOOK FOR REAL ESTATE INVESTING
SESSION 6 y Working with Contractors
• Qualifications• Draws – Contractor Payments • Lien Release Documents• Contract - Detailed Scope of Work • Change Orders
y Rehab Process y The Investor’s Role in the Rehab Process
SESSION 7 y Marketing and Selling
• Utilizing the Realtor/MLS• Marketing the Overall Business• Business Website• Additional Tools/Ideas for Marketing
SESSION 8 y Finding - Off Market
• FSBO-Signs, Classifieds, Websites• Finding Websites• Networking• Bird Dogs/Agencies• Marketing-Ads, Other Lead Sources
SESSION 9 y Finding - Off Market Continued
• Pre-Foreclosure• Prop Stream/County Records• Skip Tracing• Focusing on Financial and Situational Distress• Leads and Mailers• Communication with Owners
SESSION 10 y Duplication - Utilizing a System y Consistent Lead Flor y Business Plan/Schedule y Wholesaling
House Flipping Course Outline
09REKI WORKBOOK FOR REAL ESTATE INVESTING
purpose drives vision. vision drives performanceJIM MADRID
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010 REKI WORKBOOK FOR REAL ESTATE INVESTING
believe you can and you’re halfway thereTHEODORE ROOSEVELT
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011REKI WORKBOOK FOR REAL ESTATE INVESTING
SESSION 1 y Defining and explaining pre-
foreclosure and foreclosure properties y Financially Distressed/Physically
Distressed y 4 D’s (Reasons for pre-foreclosure
and foreclosures)
SESSION 2 y Understanding the Market – Finding
your “Farm” y Determining Market Area y Choose area close to home y Identify real estate agents who are
familiar with your farm y Obtain demographic information y Research property values y Learn average “Days on Market” y Create your property profile
SESSION 3 y Finding pre-foreclosure and
foreclosure properties y Internet sources y Paid for services y Work with real estate professionals
SESSION 4 y Evaluate the Deal y (IF) working with Realtor/MLS y (IF) working with Owners y Run The Numbers
SESSION 5 y Make an offer y Real Estate Agents and/or Attorneys y Proof of Funds y Owner(s)
SESSION 6 y Funding Sources y Private Money Lenders y Hard Money Lenders y Soft Money Lenders y Financial Institutions y Personal Funds
SESSION 7 y Due Diligence (Validate & Verify) y Professional Inspections y Verify level of rehab/remodel y Contractor Bids y Title
SESSION 8 y Closing The Deal/Re-negotiate y Win-Win scenario y It’s business not emotions y Re-negotiate (If numbers don’t work)
SESSION 9 y Marketing/Selling y Realtor y For Sale By Owner (FSBO) y Bandit Signs y Self-Advertising
Foreclosure Real Estate Course Outline
realestateki.com
012 REKI WORKBOOK FOR REAL ESTATE INVESTING
SESSION 1 y Introduction y What is Commercial Real Estate y The Benefits of Commercial Real
Estate Investing y Options y Types y Be a Finder y Wholesale y Find Distressed Bank Loans y Picking the Right Type of Commercial
Investment For You
SESSION 2 y Setting Up Your Business y Business Plan y Collateral y Credibility
y Required Resources y Session 3 y How to Become a Successful Investor y Do’s vs. Don’ts y Terms to Learn y Where to Invest
SESSION 4 y Building Your Team y Professionals y Commercial Agents y Bankers/Financiers y Referral Partners
SESSION 5 y Learning Your Investment Class y Deal Sourcing
Commercial Real Estate Investing Course Outline
013REKI WORKBOOK FOR REAL ESTATE INVESTING
y Evaluating Properties y Running the Numbers y Become an Expert in Your
Class
SESSION 6 y Finding and Evaluating Deals y What to Look For y What to Avoid y Placing Offers y Session 7 y Financing y Resources y Finding the Money y Banks y Hard/Private Money y Create Your Own Fund y Lease Options
y Seller Financing
SESSION 8 y How to Raise Your Own Capital y Creating Your Own Investment
Fund y Finding Partners
SESSION 9 y Placing Offers y Through Agents y Preferred Working With Seller
Directly y Session 10 y Due Diligence y Property Inspection y Financial Analysis y Counter Offers
y Working Out the Bugs y When to Call It Quits on a Deal
SESSION 11 y Submitting Your Offers y Three Offers y Contracts y Closing the Deal y Escrow y Title arrangements y Getting Paid
SESSION 12 y Replicating Your Business y Building Your Empire y Diversifying
realestateki.com
014 REKI WORKBOOK FOR REAL ESTATE INVESTING
SESSION 1 y Admin Info y Building a Relationship y Resources and Tools-Basic Walk-
through y Wholesaling Overview
• This is the process of selling your
right to buy the property.• The wholesaler does not take
ownership of the property.• Line up a buyer to come in and
take over the deal.• Charge a reasonable fee for
service.• There are several ways to whole-
sale a deal.• Critical Functions of a Wholesaler• Benefits of Wholesaling
y 3 Types of Opportunities y Creating a Property Profile y Understanding the Market and Finding
Your Farm y Finding
Wholesaling Course Outline
015REKI WORKBOOK FOR REAL ESTATE INVESTING
SESSION 2 y Further Finding Methods
• Utilize every possible method to find deals
• Start with a couple of methods and branch out from there.
y Walkthrough of Working with Owners
• Communicating with a dis-tressed owner
• Discovering physical and finan-cial condition of the property
• Finding distressed/motivated sellers
• Simple contracts and contin-gencies for wholesaling
• Closing the deal when working with owners
SESSION 3 y Evaluating The Deal y Look at numerous deals together
and start to evaluate them. y Determine Seller’s Level of
Motivation y Does it fit your property profile? y Request Comps from Agent y Evaluate the Comps
SESSION 4 y Cost Involved in the Deal
• Rehab Cost• Holding Costs• Closing Costs• Wholesale Fee
y Formula vs. Running the Numbers• Formulas• Running the Numbers
y Making Offers• MLS Listings• Working with Owners
SESSION 5 y Due Diligence y Completed after accepted offer. y Be mindful of due diligence
contingency timeframe. y Inspection/estimate from
contractor(s) y Verifying all numbers y Title report y Scope of Work
y Investor Packet y The goal is to give investors a solid
tool to easily evaluate the deal. y It is critical to give a quick summary
and then provide proof of all details. y Summary y Property Report y Property Specifications y Purchase Price y Rehab Bid y ARV (After Repair Value) y DOM (Days on Market) y Proposed Exit Strategy (Flip or
Hold?) y Location y Property Listing y Purchase Contract y Comps y Photos y Preliminary Title Report
SESSION 6 y Building a Buyers List y It is very important to keep an
ongoing list of potential buyers. y Contact numerous buyers each
week to find out about their criteria. y Resources to Find Buyers
SESSION 7 y Mechanics of Wholesaling y Adding New Buyer y Assignment of Contract
SESSIONS 8-10 y Further Finding Methods (Review of
all methods, help branching out to find further deals.)
y Utilize every possible method previously discussed.
y Finding and working deals together to ensure student is taking action
realestateki.com
016 REKI WORKBOOK FOR REAL ESTATE INVESTING
Tax Lien and Deed Investing Outline
SESSION 1 y Get To Know the Student y Introduction to TLC
• TLC vs. Other Investments• Your Role as a Tax Lien
Investor y Understanding Your Reasons y Introduction to the E-library
SESSION 2 y Auctions y Post Auctions y County Conversion Rules y Free & Clear y Attorneys y Finding List y Screening List
SESSION 3 y Property Profile
• Pictures of Property• Subdivision Maps• Comparables
y Relocation Packet
SESSION 4 y Types of Auctions y Post Auction y County Purchase
Requirements
SESSION 5 y Investment Practices y Investment Capital y Entrepreneur Business
SESSION 6 y Introduction to Tax Deeds y Auctions y Post Auctions y Finding List y Screening List
SESSION 7 y Property Profile
• Pictures• Mapping• Comps• Area
SESSION 8 y County Statues on Jr. Liens y Free & Clear y
SESSION 9 y Types of Auctions y Post Auction y County Purchase
Requirements
SESSION 10 y Selling Is Part of Life
• The Philosophy of the Sale• Fundamental Principles of
Selling y Exit Strategies
SESSION 11 y Methods to Sell Quickly
SESSION 12 y How Properties Sell y What Information Is Needed y The Internet for Information
SESSION 13 y Ad Designs y Software Training
SESSION 14 y eBay y Bid4assets y Craigslist y
SESSION 15 y Title Transfer y Types of Deeds y Finding Deeds y Recording Process
017REKI WORKBOOK FOR REAL ESTATE INVESTING
risk comes from not knowing what you’re doingWARREN BUFFETT
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018 REKI WORKBOOK FOR REAL ESTATE INVESTING
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021REKI WORKBOOK FOR REAL ESTATE INVESTING
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Encompass REIThe definitive tool for real estate investors.Learn more at http://EncompassREI.com