Program Details
- The following Contacts and ideas are not the only way to invest in real estate, nor are the requirements to work with us...they are, simply put, the best tools that I and my investors have.
- There is inherent risk associated with Real Estate Investing, but the great thing is that Time is the greatest corrector of any mistake made in this business.
- Purchase: Contact Joshua Blank to select the project that suits your investment desire.
- Funding: If you have Cash, you will be able to pick a project immediately.
- Funding: If you (like most investors) require a loan for your project, contact Bob O'brien from First Choice Bank to get approved. ** He has an incredible 10% down program for Foreclosures...All others require 20%.
- Inspections: The properties are in bad condition and need work...you are welcome to have a home inspection, but I can guarantee you the inspector will tell you there are a vast array of problems with each and every house we sell, they will likely recommend not to buy the house...the inspectors job is to point out all of the flaws the unit has...it's our job as investors to buy something that needs repair and repair the unit to a level that will satisfy a first time home buyer or a tenant. If you are looking for undervalued real estate, IT WILL BE UGLY and need repair. It's not your home, it's an asset you own.
- Insurance: Provide Insurance for the unit. A policy for Country Companies is $250-$450 typically and they are not ridiculous with rental properties...many companies want the units to be immaculate...Country Companies understands that rental units are simply that...rental units. Some companies will want you to put ridiculous updates into the homes that simply do not justify the expense...
- Closing: Contact Karrsten Goettel to verify the scheduling of the closing. He is well versed with Series LLC transactions and specializes in foreclosures.
- Titlework: If you close on the property in a Series LLC, you may need to deed the property over to yourself after close in order to expedite the refinance process. After refinancing the unit, you can deed the property back to the LLC or any other entity you would like.
- Rehab: Here is the key to the whole process, and where investors make or lose money. Having an honest contractor is the key. I struggled with this for years...contractors lying about prices, handymen stiffing me or not showing up at all...It was VERY difficult. I finally formed my own crew which is now run by my father Ron Blank. You are, of course, welcome to use any handyman or contractor you would like, it's my experience that our crews are the best and will provide you will the best return on your money...our average rehab time for a unit is 2-3 weeks...a typical contractor will likely not show up in that time frame, let alone finish the project. From bowed foundations to sagging roofs, we have fixed every issue I can think of...
- Appraisal: Call us to set up with the proper Appraiser...The appraisers need to be experienced with foreclosures...Often times you will get the best deal when using a mortgage lender in these situations...Banks can be limited with the appraisal companies they can use...I provide sold comps with every unit so there should be no problem with our future value numbers. You can expect some slight variation, but if there is a large disparity please contact us to verify you are using the proper appraiser.
- Cash Out Refinance: I recommend refinancing with one of the lenders from my approved lenders page. Each lender will have different strengths and weaknesses, but they have experience with investment real estate...
- Rental: You are welcome to enlist our leasing agents to help you lease the property. Call Beth Blank at 630-849-6242. She specializes in rentals and will be a great asset for the management of your investment. She is not a property manager, but will likely provide you with a vast array of assistance and knowledge that will help you through the process.
- Day to Day Issues: I recommend getting a PO Box or having rental checks sent to your office.
- Maintenance: Maintenance will arise...the game is real estate INvestment, and many times people forget that INvesting often requires some money INto the project. Expect it...it happens.
- Expectations: Real estate investing is like the game of Golf. Many people expect to be instantly great at the game without any experience or knowledge, but the simple fact is the more you play and practice the better you get. You wouldn't go out an expect to beat Tiger Woods your first time out, would you? With that in mind, remember this business is tough to predict and involves risk. I play a course near my house pretty often. Last summer I eagled a short par 5. It was the first eagle of my life and a great moment for me...the next time I played, I double bogied the same hole. I've sold some properties in 12 hours on the market for nice returns and other times I've taken my lumps...evicted tenants...sat on the market...re-rehabbed the unit... In the end I'm successful as an investor because I stick to it...and I've been through the ringer....for every good story I have, there's a headache or tough story I could tell you as well. But at the end of the day, I will retire much younger and much better off, as a result of the units I own today...
- Get Rich Quick = Fad Diets = Every other scam: If you think you can buy some machine and work out 20 minutes a day, 3 days a week and look like Arnold Swarzenegar ...You're nuts. The guy on the info-mercial likely spends 3 hours a day in the gym and eats protein shakes for breakfast, lunch and dinner. The same is true of investing...Flip this house is a great show, but the real world is a bit different. Investing often times requires the same type of dedication that losing weight requires. Time, Effort, Energy and Hard Work. All too often success is disguised as hard work. My goal is to help make investing simple for you with solid contractors, competitive banks, competent leasing agents and a back office staff that is there to answer questions and navigate the issues.
**Foreclosures largely require Cash Offers and will only allow for Commercial Finance...Mortgage Brokers will promise the world and often under-deliver. They can not fund the initial purchases of the foreclosures...(Underwriters will often kill these deals days before close due to the property conditions) they can however refinance a property once the unit is rehabbed.