Anatomy of the Grand Slam
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canada goose Perhaps you started out thinking that you have to hit canada goose black friday sale a home run on every deal. You don’t. Baseball canada goose outlet sale hall of famer Babe Ruth only hit a home run 8.5% of the time and he struck out 15.8% of the time! Here was the key to his success: on more than a third of his tries, he connected with the ball and got on base. Imagine how history would canada goose outlet store uk have to be re written if he had quit after his first strike out! canada goose
canadian goose jacket Real estate investing works canada goose outlet shop the same way. If you can hit a lot of base hits, you will have a very successful career. Every one of those hits is a building block to your success. I know, because I’ve had the good fortune of several hundred real estate “at bats”, resulting in my share of base hits, home canada goose outlet jackets runs and strike outs. But those deals, good or bad, built the foundation of my canada goose outlet nyc business, and without that knowledge and experience, I wouldn’t have been able to hit the elusive Grand Slam. canadian goose jacket
buy canada goose jacket cheap I hope that sharing with you what a Grand Slam looks like (to me your opinion of what a Grand Slam is may differ) will help you recognize one when you see one, and keep you motivated to grow your business and expand canada goose factory outlet your comfort zone. https://www.gooseyou.com A canada goose outlet store deal like this won’t be your first deal, but if you don’t keep your head in the game, it ain’t gonna happen! buy canada goose jacket cheap
How to Analyze a Real Estate Deal
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buy canada goose jacket After underwriting the financials, I concluded that the deal would only pencil at $800,000. I made the offer and it was quickly rejected. I tried to reason with the seller and explain that it was going to cost me $700,000 to fix up this property and my offer price was really all that the property canada goose outlet uk was worth in its current condition. They wouldn’t budge, so I stood my ground and let this one go. buy canada goose jacket
About a month later, I heard that the bank was becoming even more anxious. I called the broker and reminded him that I was still interested. The seller asked if I could increase my offer. “Sorry, I don’t bid against myself” I replied. A couple weeks later, the phone rings. We have a deal! I must admit, I wasn’t expecting that!
The property was just over 50% occupied when I took over. The empty apartments were in pretty bad shape, the exterior needed all new siding, wood trim, roofs, landscaping, repair of failed retaining walls, you name it, it needed it.
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Canada Goose sale I financed the property with a $1,100,000 hard money loan and raised another $540,000 with a Reg. D private offering. The lender held back about $600,000 of the loan proceeds in a construction reserve account, to be distributed as the construction progressed. That left me $500K from the loan proceeds and $540K from canada goose outlet online the equity offering to close the deal and get started. canada goose outlet black friday Even though I had none of my own money in this deal, I cannot overemphasize that this financing structure is only possible with experience, relationships, and a track record (remember all of those base hits you are using as building blocks?). canada goose outlet in usa This is not the “no money down” strategy from Guru Ville. Canada Goose sale
canada goose clearance Within 12 months, the property’s brand name was changed, almost every apartment unit had been renovated inside, the exterior was completely renovated, picnic tables and BBQs installed, the landscaping was lush and official canada goose outlet green, and occupancy had risen from 55% to 97%. canada goose clearance
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cheap Canada Goose Rents increased from an average of canada goose outlet $620 to goose outlet canada $734, an 18% increase. After 3 months of stabilized income on the books, I listed the property for sale and within a month accepted an offer for $2,650,000. The property closed in December 2012. Start to finish, this flip took 22 months. cheap Canada Goose
uk canada goose Here is what the numbers looked like: uk canada goose
canada goose coats I wish I could say that the profit was all mine! Remember that I financed this deal without using any of my own money? The investors got a little over half of the profits. They received 185% of their initial investment back, making them a healthy 43% IRR. Sharing the profits is one of the sacrifices that we all must make when we want to get into bigger deals or grow our businesses beyond our canada goose outlet own resources. I’m happy to share because part of something is better than all of nothing. canada goose coats
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Not every deal has to be a home run to be successful. Many successful careers are dominated by base canada goose outlet toronto factory hits, and that builds the foundation you need to hit the elusive Grand Slam. Keep your head in the game, don’t ever give up, and you will hit one eventually.
Canada Goose online Some of the best deals come out of nowhere. Make sure that everyone you know, and everyone you canada goose outlet new york city work with, is aware of what you do. And use good property managers that have your best interests in mind! Canada Goose online
Unless you are an heir/heiress or imported money into your real estate business from another successful venture, private investors are critical to any growth strategy. Treat your investors well. Under promise and over deliver. Be honest and transparent, and communicate with them whether the news is good or bad. They will be there for you again when you need them.
Many investors hit some home runs, and once and a while, a Grand Slam. What is your favorite success story?
cheap canada goose uk NOTE From the Editor: We interviewed Brian for the BiggerPockets Podcast and talked in more detail about the Home Run deal discussed in this post. Check it out here: BiggerPockets Radio Podcast 003: Getting Started in Real Estate and Raising Money canada goose outlet canada with Brian Burke cheap canada goose uk.