learn all about land trustfiles.meetup.com/1768790/september 2016 newsletter.pdf · crowne plaza...
TRANSCRIPT
December 2014 >>>
Main Monthly Meeting
The five documents for flipping land
Home Depot Paint and Appliance
Program
Nightly Rentals, The Hottest Investment
Right Now?
Larry Goins & Randolph Cunningham
A Monthly Insight into Metrolina Real Estate Investor’s Association SEPTEMBER 2016
Learn All About Land Trust with Mary Hart
September 15, 2016
Crowne Plaza Charlotte Executive Park 5700 Westpark Drive , Charlotte , NC 28217
Join us the 3rd Thursday of every month for lots of networking and top-notch real estate investing educations. Here our talented and experienced speakers as they enlighten our members on Hot real estate topics. Wealth through knowledge.
My flagship program the Land Profit Generator teaches you how to find and purchase pieces of land for WAY below market value (usually 5 – 20%, depending on the size and value of the parcel). Many, many people have had great success with my program, but I have seen that one of the more intimidating parts of flipping land can be identifying which legal document to use and when. In the Land Profit Generator program, I go over each step of the process in detail and provide you sample documents that you can edit and adapt to your own circumstances (if you haven’t yet picked up the LPG program, you can get it by clicking here), but I thought that it might be a good idea to go over the basic d o c u m e n t s h e r e o n m y b l o g . So without further ado, here are the 5 most important documents that you use when flipping land. 1. Letter to land owners. This is the letter that you send
out to a list of property owners. It shouldn’t be very complicated, but it should convey a couple of pieces of information: Identify those who view property ownership as "a burden"
2. Make it clear that you are willing to purchase their property from them for a SMALL CONSIDERATION Including this information will weed out owners who expect a full market value purchase and thus save you from spending time on pointless conversations.
3. Purchase/Sale Agreement. Once you have spoken to the person and negotiated a price, you will need to prepare a document that sets out the terms of the purchase (making sure to leave yourself the option to back out at any time and for any reason). Both you and the seller will need to sign the agreement. I have found that the term "Sale Agreement" is easier to understand than "Purchase Agreement", because some sellers think they are being forced to buy something they already own. In most cases, there is no need to include anything about an escrow deposit.
4. Deed. This is the document that will actually transfer the title of ownership from the seller to you. Each state has a slightly different version of this document, and if
you do not prepare it correctly it will be rejected by the Recorder/Clerk, causing you a headache. To find out what kind of deed is used locally, you can either: a) use a title company for your first deal and then use the same type of document for future deals, or b) go to the office of the County Recorder/Clerk and look at recently recorded deeds (from the past few days). Then jot down the name of the document and the basic information it includes, and then make your own with a similar layout.
5. Purchase/Sale Agreement (this time as the seller). Once you own the property, you will need to market it to find a buyer. Once you have done that, prepare another Purchase/Sale Agreement, only with your name listed as the seller. Then send it to the buyer, making sure the document clearly states the payment terms (making sure that everyone knows what is expected of them.
6. Loan Servicing form. This final form is used when you sell with owner financing (which I think is a great way to generate some Temporary Cash). This is the form that you prepare and send to a third-party company who will take care of collecting payments and sending the money to you.
Once upon a time I used PayPal, but these days they frown upon handling payments for land. Just Google the term "Loan Servicing Company" and the name of the area you are investing in to find a local company. Finally, there is a secret sixth document that can protect you legally: something I call the "as-is" form. This is a form where the person acknowledges that they are purchasing the land "as-is" and that they have personally seen the property. This prevents the person from coming back later and suing you for supposedly "hiding" and defects about the real estate. In fact, I am happy to say that after over real estate 3,000 transactions I have never been the subject of a lawsuit. Use these documents to flip land, and please visit www.landprofitgenerator.com to purchase the complete program which covers these steps in much more detail.
http://www.jackbosch.com/the-five-documents-for-flipping-land/
THE FIVE DOCUMENTS FOR FLIPPING LAND
Visit out website at MetrolinaREIA.org
Succeeding in business is about smart relationships. That’s why we created the Office Depot OfficeMax National REIA Program, a program which, as a member, you are entitled to! Participating in the program provides you with great savings, award winning customer service, and the ability to shop the way you like (online, by phone, or in-store). The Office Depot OfficeMax National REIA program is a smart way of taking care of your business. A portion of the savings you receive when you purchase your business supplies from Office Depot OfficeMax is given back to the association to help fund the activities that support and benefit you as a member.
Benefits of the Program:
Save up to 65% on 1500+ items that businesses purchase most often, including extensive discounts on national brand ink & toner. Save up to 15% off just about everything Office Depot stocks in stores and the Business Solutions Division annual catalog. Ability to Customize your Core Supply List for the products and services you use most Free Next Day Delivery on orders over $50.00* Product offerings for supplies outside of everyday office supplies such as Cleaning, Breakroom, Fur-niture, Technology, and Copy and Print. Dedicated Account Manager ([email protected]) 855-337-6811 Ext. 12716
Here’s how it works:
Go to National REIA’s website and print out your Store Purchasing Card to use in any Office Depot or Office Max retail store. Our Copy & Print desk will laminate this for you FREE. This card is the only thing you need to receive the discounts in-store. Go to National REIA’s member benefits page and click on the Office Depot OfficeMax Customized Online Portal and shop online for delivery of your supplies.
Special Pricing on Copy & Print
2.5¢ Black & White copies 22¢ Color copies 40% off Finishing Services - including laminating, binding, paper upgrades etc.
National REIA members receive Free next business-day delivery for orders over $50. Orders under $50, you pay $5.95 shipping, for orders under $25 you pay $7.95 for next business-day delivery. Phone in your supply order by 5 pm or fax it by 3 pm and receive next business-day delivery, FREE! (Most furniture, some technology, oversized items and special order items are excluded.)
Nightly Rentals, The Hottest Investment Right Now?
I am sure by now you have heard of the many nightly rental websites that allow property owners to advertise their homes, apartments, and even extra rooms for rent on a nightly basis. There have of course been some controversies over this new industry as it takes revenue away from the hotel industry and thus decreases the amount of taxes that local cities receive from the transient tax. One way or another, you have likely heard of this industry by now. Have you taken the time to analyze this as a viable investment opportunity, though? When you start running the numbers and seeing what others are doing, then it starts looking very attractive.
If you take your typical rental that rents for $1200-1500 per month and convert it to a nightly rental, you should see about double the gross income. You will have some additional costs of course, and if you have the right property in the right location, that can easily increase to 4 times the long term rental income. This all sounds nice, but of course you are naturally wondering about the additional costs associated with nightly rentals and the added time it takes to manage these properties.
The largest cost is the initial design and furnishing of the unit. You will need to fully furnish these units to make sure they are attractive. Furnishing doesn’t end with just the beds and living room furniture. You should ultimately have a fully stocked home, so a complete set of dishes, tableware, pots, pans, etc. will be needed. You will also want to pay close attention to the details – . keep in mind that you are competing with hotels that have onsite staff. So, go the extra mile and provide some travel toothpaste, toothbrushes, Q-tips, shampoo, and ultimately anything else that someone could forget to pack. You also want to make sure that all of the walls are decorated. Obviously this starts with a good paint scheme, but extends to the artwork on the walls and knickknacks on the shelves.
Many of the successful nightly rental homes incorporate some sort of theme in their design. It can be a design that highlights the local area and attractions or something much more unique. When picking out furniture it is good to remember that you want your guests to feel very comfortable and at home. So you shouldn’t go with furniture that feels “cheap”;, with that said you also don’t have to get expensive name brand furniture either. For many nightly rental investors, the step of picking out furniture or keeping an eye out for unique furniture items that they can incorporate is the most exciting part of the process.
The other cost is that you will have to have the unit cleaned and turned over after every visitor. If you go with a management company like IRC Real Estate, then you can typically take advantage of the volume discount they get from their vendors. This expense should be in the $50-$150 range depending on size and what turn over services you require. With the dramatic increase in income you are still much more profitable compared to a long term rental.
When it comes to maximizing your profits though, nothing matters more than location, location, location. With nightly rentals this isn’t just a business cliché, it truly matters. When choosing a property to use as a nightly rental you should always start by searching within close proximity to areas that travelers might go. The obvious locations are attractions like ski resorts, near airports or children’s hospitals, wine country, coastal towns, and city downtowns like Portland, Bend, & Salem for events and legislative sessions, to name a few. If you have a property in a good location with a good interior design, then you can end up with a fully booked home almost year round. Depending on the location, design quality, vacancies, and size you can expect $100-$1000+ per room per night in revenue.
Keep in mind that this type of investment property is truly a full time job. For a popular property you will have a check in, check out, and turn over to coordinate nearly every week. In addition to this most of these sites are heavily reliant on reviews by your guests and your rating on things like response time to inquiries. So you have to always have your smart phone on you 7 days a week to make sure that you are able to respond within hours.
As you can tell this kind of investment isn’t for everybody given the work it requires. This is why the investors that truly view being an investor as their profession hire property management firms like IRC Real Estate. This allows you to focus on finding and buying the properties in the right locations and possibly handling the remodel and interior design, but then turn it over to the management company. Some companies like IRC Real Estate even offer in house interior design services that will take care of that work for you.
If you are seriously considering getting into the nightly rental industry I am happy to answer any questions you may have and offer some free advice. With my involvement at the board level with organizations like the Portland Area Rental Owners Association, NW Real Estate Investors Association, and the Salem Rental Housing Association I am happy to help educate or guide property investors when they run into problems or are simply new to the industry.
Christian Bryant is President of the Portland Area Rental Owners Association and President of IRC Enterprise / Real Estate
Support Our Business Partners!
ACCOUNTING Capstone Financial Services, Inc. Doug DeShields P.O. Box 77225 Charlotte, NC 28271 Phone: 704-765-2201 [email protected] Smith and Shin, Certified Public Accountants, LLC Ki Shin 530 Howell Road Suite 203 Greenville, SC 29615 Phone: 864 322 8995 [email protected] www.smithandshin.com ADJUSTERS AmeriClaims, Inc. Robert Freitag 305 Post Office Dr. Suite #4 Indian Trail , NC 28079 Phone: 704-821-0108 Toll Free: 866-310-0195 [email protected] www.americlaims.com ATTORNEY
Elam Law Firm, PLLC Brian Elam 630 Williamson Rd. Charlotte, NC Phone:: 704-230-4945 [email protected] ELECTRICAL G B Electrical Services Greg Bartholomy 6602 Goldenwillow Drive Charlotte ,NC 28215 [email protected]
HARD MONEY LENDERS Carolina Hard Money Wendy Sweet 4607 Charlotte Highway Suite 3 Lake Wylie, SC 29710 Phone: 803-831-2856 [email protected] www.carolinahardmoney.com
CCC Holdings, LLC Claude Stone 2301 B Rama Rd Charlotte, NC 28212 Phone: 704 531 2888 [email protected] www.hardmoneymetrolina.com
HOME INSPECTIONS Walter Wilson Inspections Walter Wilson 4925 Old Fox Trail Charlotte, NC 28269 Phone: 704-400-5891 [email protected] CONSULTING Homevestors 139 Chapel Point Rd Lake Lure , NC 28746 Phone: 1-828-989-3785 www.robcaldwell.homevestorsfranchise.com/
INSURANCE Nationwide Insurance Brett Ziskind 2710 Trappers Creek Ct. Charlotte, NC Phone: 704-527-5766 [email protected] INVESTMENT SALES The Goins Group, LLC
Wendy Sweet P O Box 5261 Lake Wylie, SC 29710 Phone: 803-831-2856 Home Vestors Kip Roth 2624 West Blvd, Charlotte , NC 28208 Phone: 704-497-0771 [email protected] Neighborhood Housing Group Larry Goins 4707 Charlotte Swy Lake Wylie, SC 29710 Phone:803-831-0056 MISCELLANEOUS
CRS Data Chuck Phillips 341 Troy Circle Knoxville, TN 37915 Phone: 1-865-584-8017 [email protected] Auction.com Lee Stevens 1 Mauchly Irvince, CA 92618 Phone: 949-672-3642 ext 63642 [email protected] Americas Best Choice Windows & More Jared Dullum 15720 Brixham Hill Avenue #300 Charlotte, NC 28277 Phone: 704-464-8424 [email protected] The Goins Group, LLC Wendy Sweet P O Box 5261 Lake Wylie, SC 29710 Phone: 803-831-2856
MORTGAGE LENDERS
First Equity Funding Claude Stone 4801 East Independence Boulevard # 303 Charlotte, NC 28212 [email protected] Movement Mortgage Bryan Maddex 2901 Coltsgate Road Suite 100 Charlotte, NC 28211 Phone: 7042463833 Bran.maddex@ movementmortgage.com PRINTING COMPANY Soft Wash Wizard Steve Babcock 4830 Hudderfield Drive Harrisburg ,NC 28075 [email protected] PRINTING COMPANY Charlotte Print Shaun Caldwell 9101 Munsing Drive Charlotte, Nc 28269 Phone: 704-222-6944 [email protected] PROPERTY MANAGEMENT Costner Realty Marshall Costner P O Box 78058 Charlotte, NC Phone: 704 953 7270
REAL ESTATE BROKERS
Charlotte Investors.com Scott Patterson P.O. Box 790274 Charlotte, NC 28206 Phone: 704-500-0011 [email protected] RPS Properties of the Carolinas Pamela Striano P O Box 669331 Charlotte, NC 28266 Phone: 704-529-7368 [email protected]
Support Our Business Partners!
The Estates LLC 173 Yatkin Falls New London , North Carolina 28127 Phone: 702-327-4556
REAL ESTATE INVESTMENT
Matchmaker Real Estate Solutions, Inc. Wayne Clanton PHP 3223 E. Hwy. 218 Monroe ,NC 28110 [email protected]
Pinnacle Investment & Development Laurie Knisely 5806 Highland Shoppes Drive Charlotte ,NC 28269 [email protected] Real Estate Franchise Coaches, LLC Jim Williams 5709 Gate City blvd Greensboro ,NC 27407 [email protected] SELF-DIRECTED IRA’S American IRA, LLC Sean McKay 137 Broad Street Asheville, NC 28801 Phone: 866 750 0472 [email protected] www.americanira.com STAGING Betti Staging Carlos Betti 6419 Creola Rd Charlotte, NC 28226 Phone: 704-526-8685 TRASH REMOVAL Junk King Terendius David 8425 Old Statesville Rd Unit 4 Charlotte, NC 28269 Phone: 7047013527
Subgroups
