The training turned out to be on a Friday, Saturday, and Sunday in April 2014, so I was not able to go on Friday due to work, nor on Saturday due to a last minute softball tournament, so my husband and daughter went to the first two days without me and gave me all the information in the evening.
Day1
The trainer, Matt Davis, was very upbeat and energetic in his teachings, mostly because he wanted you to succeed in the real estate investing business just like he has. The main ideas for the first day were about changing your mindset, determining how much time you can give each week to the business, and what do you want to gain from the business.
We learned about finding the right real estate agent to help you with your deals, how to determine the maximum offer for each property, and different ways to negotiate with a potential seller.
To get the After Repair Value for a house you take the Sq. Ft. of the house times the average price per Sq. Ft. of comp houses that have sold recently.
From the ARV you deduct the following:
· Repair costs
· Purchase costs (1%)
· Holding costs (3%)
· Sales costs (3%)
· Minimum profit acceptable (15%-25%)
· Fudge factor (3%-5% of sale price)
· Assignment fee of doing a wholesale deal
The last topic for the day was about how to market the property, (i.e. craigslist, bandit signs, and free newspapers). Matt also explained that with the people how call and show interest in the property to make a database with their information and what kinds of properties they interested in, what areas they are looking to purchase in and the price range they are looking to purchase within. He explains that by having this buyers list you will always have a list of cash buyers for any property you come across. He then goes on to explain how to do a wholesale deal with the cash buyer and the seller of the property where you will make a finding fee but your skin is not in the game if the deal falls through.
As a homework assignment for that night, everyone was supposed to go to Credit Karma to find out what their credit score was, my husband and I have excellent credit so by looking we knew we would probably finance the first few deals we make. The other assignment was to call all your credit card companies and ask them to increase your balance limit and also decrease your interest rate, I did not do this because I am adverse to having too many credit cards with large balances and not being able to afford to payments.
Day 2
The first topic of the day was about contract negotiations. A good thing to keep in mind is “whoever controls the contract, controls the transaction; whoever controls the transaction, controls the money and the outcome!”
Most contracts will have the following elements,
· An offer (key elements of the deal: price, timing)
· An acceptance
· Consideration
· Competent parties
· Legal purpose
· Written documentation
· Legal description
· Signatures of all parties
· Addendum – these provide negotiations, protections, clarifications and limited liability
We were given different sample contracts for different situations so that one will only need a good real estate agent who will not charge you for every contract that they write, and/or a real estate lawyer who understands how to read and write real estate contracts.
Next, we learned about the several different types of properties: for sale by owner, foreclosures, short sales, auctions, and the advantages/disadvantages of each type. We also discussed fix and flips, wholesale, straight selling, buy and hold, and lease options and different ways to make money from the properties.
At the end of the day, they talked about different levels of advanced training: Gold, Platinum, and Diamond Deluxe. Of course, my husband once again bought the additional training at the highest level. What came with the Diamond Deluxe package:
· 4 on-demand 3-day trainings
· Group boots-on-the-ground training
· Home study course
· Mentor support hot-line
· Access to transactional funding
· A private one-on-one training session
· PropTrend software
· Free trip to Las Vegas for their Buying Summit
Day 3
The morning topic was about the 4 threats real estate owners face, lawsuits, income taxes, capital gain taxes, and death/probate tax. All 4 of these items can be lessened if real estate owners learn how to protect themselves. This moved the topic to different types of tax strategies as well as tax deductions for both owners and businesses. This is where we were informed one needs to make sure to get professional tax and legal counsel, and they stressed this point a lot, since they could only provide suggestions and not real advice.
Next, we talked about the need to protect the owner by discussing different legal structures real estate investing people can use. It was suggested that we use VeilCorp because they are trained in legal structures for all 50 states and they understand real estate investing. If we wanted to do the legal structures on our own, then they highly advised that we get legal help from legal counsel that is knowledgeable in real estate investing and legal structures.
Overall, the training had great information and the trainers made you feel like you could succeed in real estate if you followed the guidance they gave you. The thing I took away from the training was that I should find a mentor that would motivate me and help me stay focused in the business when the people around or hardships stand in your way.
Day1
The trainer, Matt Davis, was very upbeat and energetic in his teachings, mostly because he wanted you to succeed in the real estate investing business just like he has. The main ideas for the first day were about changing your mindset, determining how much time you can give each week to the business, and what do you want to gain from the business.
We learned about finding the right real estate agent to help you with your deals, how to determine the maximum offer for each property, and different ways to negotiate with a potential seller.
To get the After Repair Value for a house you take the Sq. Ft. of the house times the average price per Sq. Ft. of comp houses that have sold recently.
From the ARV you deduct the following:
· Repair costs
· Purchase costs (1%)
· Holding costs (3%)
· Sales costs (3%)
· Minimum profit acceptable (15%-25%)
· Fudge factor (3%-5% of sale price)
· Assignment fee of doing a wholesale deal
The last topic for the day was about how to market the property, (i.e. craigslist, bandit signs, and free newspapers). Matt also explained that with the people how call and show interest in the property to make a database with their information and what kinds of properties they interested in, what areas they are looking to purchase in and the price range they are looking to purchase within. He explains that by having this buyers list you will always have a list of cash buyers for any property you come across. He then goes on to explain how to do a wholesale deal with the cash buyer and the seller of the property where you will make a finding fee but your skin is not in the game if the deal falls through.
As a homework assignment for that night, everyone was supposed to go to Credit Karma to find out what their credit score was, my husband and I have excellent credit so by looking we knew we would probably finance the first few deals we make. The other assignment was to call all your credit card companies and ask them to increase your balance limit and also decrease your interest rate, I did not do this because I am adverse to having too many credit cards with large balances and not being able to afford to payments.
Day 2
The first topic of the day was about contract negotiations. A good thing to keep in mind is “whoever controls the contract, controls the transaction; whoever controls the transaction, controls the money and the outcome!”
Most contracts will have the following elements,
· An offer (key elements of the deal: price, timing)
· An acceptance
· Consideration
· Competent parties
· Legal purpose
· Written documentation
· Legal description
· Signatures of all parties
· Addendum – these provide negotiations, protections, clarifications and limited liability
We were given different sample contracts for different situations so that one will only need a good real estate agent who will not charge you for every contract that they write, and/or a real estate lawyer who understands how to read and write real estate contracts.
Next, we learned about the several different types of properties: for sale by owner, foreclosures, short sales, auctions, and the advantages/disadvantages of each type. We also discussed fix and flips, wholesale, straight selling, buy and hold, and lease options and different ways to make money from the properties.
At the end of the day, they talked about different levels of advanced training: Gold, Platinum, and Diamond Deluxe. Of course, my husband once again bought the additional training at the highest level. What came with the Diamond Deluxe package:
· 4 on-demand 3-day trainings
· Group boots-on-the-ground training
· Home study course
· Mentor support hot-line
· Access to transactional funding
· A private one-on-one training session
· PropTrend software
· Free trip to Las Vegas for their Buying Summit
Day 3
The morning topic was about the 4 threats real estate owners face, lawsuits, income taxes, capital gain taxes, and death/probate tax. All 4 of these items can be lessened if real estate owners learn how to protect themselves. This moved the topic to different types of tax strategies as well as tax deductions for both owners and businesses. This is where we were informed one needs to make sure to get professional tax and legal counsel, and they stressed this point a lot, since they could only provide suggestions and not real advice.
Next, we talked about the need to protect the owner by discussing different legal structures real estate investing people can use. It was suggested that we use VeilCorp because they are trained in legal structures for all 50 states and they understand real estate investing. If we wanted to do the legal structures on our own, then they highly advised that we get legal help from legal counsel that is knowledgeable in real estate investing and legal structures.
Overall, the training had great information and the trainers made you feel like you could succeed in real estate if you followed the guidance they gave you. The thing I took away from the training was that I should find a mentor that would motivate me and help me stay focused in the business when the people around or hardships stand in your way.