| With the right due diligence and effort, opportunities | | | | really desperate sellers are banks stuck with REOs |
| exist right now to buy projects at huge discounts. | | | | and partnerships on their way to foreclosure. |
| These projects can cash flow on as little as 45% | | | | Point 2: The second factor is that if the bank is holding |
| occupancy. Just one of these projects could deliver | | | | an asset they cannot operate and have to foreclose |
| financial freedom for you in as little as 30 to 90 days | | | | they may be under intense regulatory pressure to get |
| after closing. | | | | the property off of their books. Essentially, they could |
| In Baltimore, an investor contact of mine actually | | | | well be in a position where they have to take the cash |
| closed on a 19 unit project for only $390,000 plus | | | | they are offered. |
| $160,000 in rehab capital. This project produces $1,300 | | | | Point 3: The third factor is to find these projects the |
| per unit in section 8 revenue and will cover debt | | | | best places to look are tax lien records, the banks |
| service on 4 occupied units alone. Assuming $76,000 in | | | | themselves, and by getting in contact with as many |
| annual costs for operating expenses and capital | | | | owners as possible. The banks cannot put you in |
| reserves another 5 occupied units are required. Plan | | | | contact with the owner for regulatory reasons. They |
| on 10% vacancy or 2 units. The remaining 8 occupied | | | | may be able to suggest to the seller that they should |
| units will generate $10,000 per month in free cash flow | | | | speak to investors. This is about as much as you can |
| -- a pretty nice living for a one property portfolio. Even | | | | hope to get. |
| better you have significant cash flow to apply to | | | | If you have capital or have a group that can assemble |
| maintenance and management. What could be better | | | | the capital you could be within a few short months of |
| great cash flow and plenty of management support. | | | | real financial freedom for yourself and your partners. |
| Capturing one of these deals requires several key | | | | As the friend who purchased the project describes |
| points. | | | | earlier says, "Remember the power of one." One |
| Point 1: The first issue is to realize that you can offer | | | | degree is the difference between hot water and boiling |
| as little as you like. Right now, properties under $4 | | | | water, cold water and ice, one contract and financial |
| million dollars have major issues drawing capital. In | | | | freedom. Find your financial freedom now. |
| some cases, the sellers are desperate for buyers. The | | | | |