5:34am curb at SJC
5:45am arrived to my boarding gate!
Jamba Juice
605 line up
8:10am on the move to hotel shuttle with luggage!
8:40 early check in, scoped out market, nicely stocked!
I had a late lunch at the EATS restaurant.
DAY 1 - Meet the Masters
Jason's 10 Commandments
"Garbage Fees" - lender and title and escrow costs
First speaker presentation - Hulet Gregory and Clifton Stone
Hulet is very experienced, running the rat race with financing careers
In 90 days, replaced a salary of $130K ...
Memphis is mid major market.
Many renters in 20s (Gen Y)....
Memphis is a world distribution center - busiest cargo airport in the world
FedEb global world hub is here! 31k employees
3rd biggest railroad center in US
More trucking companies in Memphis
Director of Ops
Direcotr of acquistions - finds the deals
Coordinator - renovations
Dir of Ops
Admin
What is a opportunity cost?
Investor A
Fundamentals of RE still exist in Memphis
Investors were in Memphis.......then out of state and out of country investors
Program Value slide:
Analyze a deal in 2 minutes
1. 100,000 x 0.01 = $1000
Use this formulas for the basis of your monthly rent, you get 1% of your investment/month for rent
Memphis rent avg are 1% + per month
"A" neighborhood - pride of ownership
Rehab - $20k , nice kitchen and bath - ceramic tile that imitates hardwood; wholesale price $96K rent $1200-2k
"B" property - covered parking - $70-90K - rents $1000-1200
"C" $65k wholesale price
One client, bought 10 properties in one year and a half
6 in inventory for this event...
*********************************************
Darlene Root
droot21@comcast.net
Tax Free real estate investing
DISCLAIMER
seek competent help
Financial friends
Phat stacks - large amt of money at one time
Self Directed ACCT types:
Roth IRA
SEP
SOLO 401K
others..
Use ROTH for real estate....
I need more education on this...
How to find a trustee you trust...
**************************************
Dave and RJ - Ohio market
Best of Meet the Masters - raffle item
**************************************
Indianapolis market
Todd and Brian
Simplified the process
"One stop show"
They go extra mile in renovating - tenants will pick these property over other
Vynal plank flooring is preferred
Indianapolis - has culture, Pacers
Positioned for growth.
"The Crossroads of America"
Strong cost of living and below national average
Median home is $149,000, 45% below national avg
Indiechamber.com - resource on Indie
Inman ranked it #1 for real estate
Wall Street ranked it #3
Bullish ...?
Financing has stabilized
Rents will be stable next few years
Why don't renters buy?
Financial immaturity
Need mobility, not permanent
**************************
Markets of interest to me:
Memphis
Why:
**************************
Real Estate income is the most favored tax write off
750 hours a year to the profession of RE
15 hours has to be active participation
Price or terms - can't have both
**************************
Land Contract Deals - (Grand Rapids)
*************************
Fernando was a worker bee at Apple then acquired 70 doors (50units)
Wanted to leave day job/corporate world
He had a plan to be financial independent
Started in 2012 - rapid acquisition space
Achieved the goal in May 2014 - Brazil for 3 months. - Independence Day Target
Struggle with portfolio
-eviction in Atlanta was first deal - learned about prop manager and eviction process
-identify property ready to go and ready to go in escrow
2-3 hours per door to manage monthly; 30 hours/wk
Really scrubs the property management and reports - attention to details
$10k actual net income a month with 70 units - $7M portfolio - 80% financed - took 24 months
Arie - 6 years - Fix and FLips 2007 - 1-2 properties this year for himself
Help investors figure out which market is good for them.
Third party to analyze a deal
Walk thru the steps, acquisition, finance, due diligence, ongoing service after closing
Figure out if can get financed
Fly out to the market - LMS (local market specialist)
Start with the ONE property...get over the first one
Jason Hartman team is area AGNOSTIC, affiliate paid
B Market with an A Team....
Company culture of Plat.Prop - do what is best for the client, not the affiliate/
Stephen - partner - apartment is a different ball game - having an apartment requires a lot of attention
Own your own business or income property
Carrie - researching providers and market specialist - talent search
Jackson, Mississippi is on map
Chicago
Sara - 2007 joined - started with no money - houses in Texas, Georgia and CA.
Gives the extra eyes and ears
Different entry levels of investor
190 transactions in 2014
Need job and income is important to qualify for loans - have a W2 job
It is a marathon, not a sprint
***********************************
Alex and Jeremy
I had a late lunch at the EATS restaurant.
DAY 1 - Meet the Masters
Jason's 10 Commandments
"Garbage Fees" - lender and title and escrow costs
Memphis Cashflow, GP " Build Wealth Thru Real Estate"
First speaker presentation - Hulet Gregory and Clifton Stone
Hulet is very experienced, running the rat race with financing careers
In 90 days, replaced a salary of $130K ...
Memphis is mid major market.
Many renters in 20s (Gen Y)....
Memphis is a world distribution center - busiest cargo airport in the world
FedEb global world hub is here! 31k employees
3rd biggest railroad center in US
More trucking companies in Memphis
Director of Ops
Direcotr of acquistions - finds the deals
Coordinator - renovations
Dir of Ops
Admin
What is a opportunity cost?
Investor A
Fundamentals of RE still exist in Memphis
Investors were in Memphis.......then out of state and out of country investors
Program Value slide:
Analyze a deal in 2 minutes
1. 100,000 x 0.01 = $1000
Use this formulas for the basis of your monthly rent, you get 1% of your investment/month for rent
Memphis rent avg are 1% + per month
"A" neighborhood - pride of ownership
Rehab - $20k , nice kitchen and bath - ceramic tile that imitates hardwood; wholesale price $96K rent $1200-2k
"B" property - covered parking - $70-90K - rents $1000-1200
"C" $65k wholesale price
One client, bought 10 properties in one year and a half
6 in inventory for this event...
*********************************************
Darlene Root
droot21@comcast.net
Tax Free real estate investing
DISCLAIMER
seek competent help
Financial friends
Phat stacks - large amt of money at one time
Self Directed ACCT types:
Roth IRA
SEP
SOLO 401K
others..
Use ROTH for real estate....
I need more education on this...
How to find a trustee you trust...
**************************************
Dave and RJ - Ohio market
Best of Meet the Masters - raffle item
**************************************
Indianapolis market
Todd and Brian
Simplified the process
"One stop show"
They go extra mile in renovating - tenants will pick these property over other
Vynal plank flooring is preferred
Indianapolis - has culture, Pacers
Positioned for growth.
"The Crossroads of America"
Strong cost of living and below national average
Median home is $149,000, 45% below national avg
Indiechamber.com - resource on Indie
Inman ranked it #1 for real estate
Wall Street ranked it #3
Bullish ...?
Financing has stabilized
Rents will be stable next few years
Why don't renters buy?
Financial immaturity
Need mobility, not permanent
**************************
Markets of interest to me:
Memphis
Why:
**************************
Real Estate income is the most favored tax write off
750 hours a year to the profession of RE
15 hours has to be active participation
Price or terms - can't have both
**************************
Land Contract Deals - (Grand Rapids)
*************************
Investment Counselor Panel
Fernando was a worker bee at Apple then acquired 70 doors (50units)
Wanted to leave day job/corporate world
He had a plan to be financial independent
Started in 2012 - rapid acquisition space
Achieved the goal in May 2014 - Brazil for 3 months. - Independence Day Target
Struggle with portfolio
-eviction in Atlanta was first deal - learned about prop manager and eviction process
-identify property ready to go and ready to go in escrow
2-3 hours per door to manage monthly; 30 hours/wk
Really scrubs the property management and reports - attention to details
$10k actual net income a month with 70 units - $7M portfolio - 80% financed - took 24 months
Arie - 6 years - Fix and FLips 2007 - 1-2 properties this year for himself
Help investors figure out which market is good for them.
Third party to analyze a deal
Walk thru the steps, acquisition, finance, due diligence, ongoing service after closing
Figure out if can get financed
Fly out to the market - LMS (local market specialist)
Start with the ONE property...get over the first one
Jason Hartman team is area AGNOSTIC, affiliate paid
B Market with an A Team....
Company culture of Plat.Prop - do what is best for the client, not the affiliate/
Stephen - partner - apartment is a different ball game - having an apartment requires a lot of attention
Own your own business or income property
Carrie - researching providers and market specialist - talent search
Jackson, Mississippi is on map
Chicago
Sara - 2007 joined - started with no money - houses in Texas, Georgia and CA.
Gives the extra eyes and ears
Different entry levels of investor
190 transactions in 2014
Need job and income is important to qualify for loans - have a W2 job
It is a marathon, not a sprint
***********************************
Alex and Jeremy
Little Rock and Memphis
Jeremy was a techy and corporate world - got disgruntled
Met Alex Craig...
Turnkey system for investing passively in a single family real estate.
Memphis
Little Rock - central located
Better properties = less maintenance
-front end cost, back end you save
Have initial monies, be the only money in the game. No out of pocket during owning.
Alex - own in house property management
350 properties under management
tip: Develop good relationship with tenant
Better picture = better leads
Wide Angle Lens
Uses social media to keep to date of activity. (twitter and fb)
*****************************************
Lenders - specialty for investors
*****************************************
Diane Kennedy, CPA
Protect yourself from paying taxes
If you have RE that is producing income, you should NOT be paying taxes
If you are a RE professional, you should not pay any taxes at all - need property
RE and Taxes - book
Direct expense - repairs, taxes, maagement
Indirect expenses - travel to learn
Phantom expense - depreciation
cost segregation study - find basis of property and assign value to
RE loopholes - get the property in service...
RE Professional test:
Hours test - 750 hours of RE activity, than any other trade business
Participation test - more than 500 hours in that property; more hours than everyone else on that property; 100 hours and more than any one person
Individual - each property has to qualify by itself - aggregate
*****************************************
Local market specialist
Chicago
*******************************************
What is my goal for real estate?
For my business (traditional) - raise capital, lifestyle, fun stuff
Investment - Buy and hold for cash flow - buy 3-5 in 2015
Investment - cash flow to replace pay check - $10k/month - live in a free and clear home.
WHERE will we live? - San Diego? Half Moon Bay? Houston? RV
***********************************
Woke up today at 7am.
I thought the session started at 8:30 but it turns out 9am so I saved my seat and got my oatmeal.
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