How you can your own residence flippingbusiness what’s going on associates it can be Sam Kwak your actual property investorcoach and mentor and in this video I need to share with you guys find out how to startyour own house flipping business now you perhaps company new you are simply gettingstarted you’re interested I imply you’re excited and you would have watched HGTVand you’re feeling particularly encouraged about commencing your own condo flippingbusiness as well so i’ll inform you that this trade is very very lucrative andvery beneficial however while you gotta realize that there’s a lot ofrisk to it financially and in addition legalize you realize there are things that you cando that may really get you in hindrance in phrases of law so i need you guys to beprepared educated and you guys understand the special things in thereal property investing world so that you just guys don’t go available in the market and just hogwhile and get in difficulty and lose ton of cash in view that that might relatively reallyhappen and i’ve obvious many many folks who’ve long past into real property would not tryto do their first flip and ended up a bit shedding ton of money andnever went again to conclude their initiatives and never relatively went back to theindustry in the first position so i would like you guys to get informed to get preparedbecause a lot of what i’m going to say is is actual I wish a lot ofthings that that it occurred to a variety of people’s on you or simply you knowpractice but guys make the effort and studying correct make the effort and gettingyourself expert considering making that one mistake goes to cost you morethan the time and the cost that you just pay to get educated k so that is reallyreally most important and i cannot I are not able to stress that enough considering the fact that there may be a lotof people who in my existence have suffered a loss from no longer getting ready in thisreal estate investing world so in actual investable there are differentstrategies you already know repair and flip is without doubt considered one of them buy and preserve youknow being a landlord notes that you would be able to get into wholesaling which is a process tofix and flipping so I want to talk about that slightly bit however these are the mainstrategies that you need to use and also you probably all for and who knowsdoing your first flip you could not even love it you possibly more inclined todoing landlording you perhaps more inclined to doing notes and and i hopethat my youtube channel is going to support you determine rather and get to knowyourself somewhat extra who you are as an investor you know whattype of investing does attraction to me what what works for you correct you understand someof the things that in in the real property investing world does not work for meright I definitely do not like short earnings you recognize they may be no longer brief I don’tknow who named it but you realize brief sales are most likely up for me however fixand flips purchase and preserve and tax liens are surely anything that i will do allday lengthy and make ton of money at so i am gonna go and speak to you guys aboutbasic overviews of commencing your own fixing foot business in these days and i am notgoing to get an excessive amount of into small print which by the way i will spiral this video intowhole an extra series where i’ll go and talk about every of the thingsthat I pointed out today correct now so things like ARV calculate marketprice what’s fair market worth on a property do coms how to raisemoney correct that is a gigantic big topic and a few of you guys probably intaking that coaching due to the fact that no cash could equal to no deals but routinely Icould prove that wrong i will be able to genuinely exhibit you methods to in finding actual property dealsget into and get out with none money being involved so i’ll show you ways todo actual property deals with out your possess credit score or money however on the same timeI’ll show you how to elevate money so that it can be Bor there’s an handy of comfy ofaccess coming into deals and rather than looking to determine it out to your ina creative approach but actually I believe I suppose like inventive actual estate investing isfar more superior in view that you realize that you can go in without any cash and come outwith ton of our eyes and ton of profit which you could generate definitelypossible however i’ma exhibit you guys how so i’ll go and spiral into a whole nothervideo series do do and canopy the details of a few of these relocating materials to theinvestment method correct so in my one factor right here in these days i will show youguys a hypothetical real estate deal that I may in finding and correctly i’m going to gocreate a entire nother video the place i’ll go and walk in through an specific realestate deal that i’m engaged on so an genuine repair and flip deal that I willshow you and exhibit you guys what is going on into it what recommendations what types of repairwhat to seem for and how so much you will have to do how much of restore must you bedoing in comparison to your regional market which incidentally earlier than earlier than i am going onmake sure your understand your market quantity via what Imean with the aid of that’s I work off of Chicago numbers proper shakaal numbers is goingto be different from Florida numbers it’s going to be specific from Michigannumbers it will be special from California numbers so do your duediligence as far as what’s traditional for your market and that is anything thatmost of the experts don’t seem to be going to speak about it you know quite a lot of theinfomercials out there they’re no longer going to claim do your due diligence in yourlocal market some will but some won’t right so i’m gonna be the i’m gonna beone of the first few individuals to let you know do your due diligence as far as whereyou are to your market and in the event you are living in Chicago exceptional you could work if I offermy possess numbers however but again still it will depend on where you’re in Chicagoright if you are in 6061 Englewood side yeah the numbers going to seem reallyreally specific proper versus 606 25 and into in the direction of the Chicago so be bemindful of the place you’re and have an understanding of that one-of-a-kind markets play withdifferent numbers k so let’s go forward and put together a hypotheticalsituation right here so i will use blue to get began now calculating ARV I’llgo ahead and put together yet another video on that however in a RV stands for afterrepair worth so R after restore worth is clearly the number the fee that wewere going to be capable to promote it for after we finish doing the repair andRehab so make sure you have an understanding of our quantity that’s going to be your key termso let’s say our ARV for this given property is set $200,000okay so now we have $200,000 property ARV so after we painted we make itlook relatively exceptional we bought new cabinet in there and you rest room you backed up withall that being finished we know we will be nearly two hundred two hundredthousand bucks now if you are in a range if you are calculating this withinrange consistently normally always take the lowernumbers so if your let’s consider you are working with a real estate agentcompetent real estate agent that claims yeah the ARV is going to be anywherebetween one hundred eighty to 240 proper don’t go with the core go along with the lowest numberbecause you know even even on the downside purple even on the very low sideif you already know that you could make cash you already know that you would be able to make cash on a $220,000 that’san for forty grand revenue that you would be able to takeaway however when you decide to take the 220 and likewise BAM you sell your house for 200then you lost two hundred twenty thousand dollars of calculated profit soalways take the shrink cash consistently be fiscally conservative when it reduce whenyou’re calculating the deals don’t do not you already know try to funds the numbers andmake your air for those who all look quality and prettyno no be real name it adore it is do not fudge with the ARV due to the fact that if the dealdoesn’t work don’t drive it right don’t drive the deal to make it work so we gotwe acquired to 2 thousand bucks ARV that’s that is what we know we will sellfor that’s the bottom number we can take that is being conservative correct be superconservative about your numbers now let’s say our repair estimate came to beabout thirty thousand dollars so repairs k and with repairs it is all going todepend on if we the contractor is going to be when your relationship to thatcontract is going to be as well and likewise understanding what varieties of repair doyou want on your given market on the grounds that if you’re in a low income part low incomehousing you do not want to necessarily put put in the nicest granite countertopyou do not want to put in brushed nickel everything right you wish to have to you need togo light with the rehab in the case of the in relation to that variety ofhousing right in the event you talk about you recognize a bit of bit more prosperous areas youknow we acquired higher revenue median sales be in the city regional then yeahyou wish to you understand upgrade to granite counter tops you wish to have to go withtravertine tiles you wish to have to move all how practically all out to the pointwhere the buyers in that regional are going to be inquisitive about yourproperty and they’re going to purchase it so hold in minddon’t overdo your house don’t put the shiniest thing on the property at all times gowith what’s acceptable to your regional market so we put in $30,000 repairs inand one of the vital things that I see that various the Guru’s in the market do not talkabout is maintaining costs preserving price is your utilities correct you acquired to turn thelights while you are doing the rehab proper particularly there in the innercorner time correct water correct you acquired to make sureyour contractors are getting water in there you need to make sure you obtained yourtaxes correct that is a different factor that you should be watching at I failed to make avideo known as five things that you should consistently knowbefore doing any actual estate deal do examine it outand that that’s a colossal saying on easy methods to find the taxes correct to your givenCounty and your and your given property so we obtained to place it we got a element inholding costs let’s shall we embrace we’re retaining this about six months because Ialways go to six months number on account that you never understand the market my shift and Iall of a unexpected i am keeping this property for 4 extra months when Ionly expected two so I put in six months worth of a keeping price simply bejust be extra risk-free so shall we say that we’re putting about twelve thousanddollars of holding cost proper and maintaining so that’s your that is your taxesutility that might be I mean little little matters like hello you need to purchase anew air filter correct little matters like that is all going to only preserve into thatnow let’s let’s let’s now calculate the cost of purchase or or the purpose whatour purpose goes to be for a purchase right so we believe if we need to make aleast thirty forty thousand thirty thousand buck revenue into that rightso let’s consider you are gonna put in twenty let’s have a look at yeah let’s let’s be let’s bemore lucrative here so thirty thousand bucks valued at of profit we wish to beable to create that quantity proper so that’s our revenue now also on high ofprofit i like to place in what’s referred to as a an oops rate right so this is this issomething that I put in there just in case shall we say we tore up a drywall andawesome Wham there’s a whole patch of molding we have to be in a position to fix it orlet’s say we tear up the roof and likewise we’re missing sheathing or some thing allright i’ll put in five grand in therejust as our our oops rate ok that’s in order that if there is some thing that Idiscover that is going to be little more high priced that I feel’santicipated i will perpetually take take the cash out of the cost budget and bam wegot our we obtained our task taking care of so if we wish this if we would like $30,000profit on this on this deal then we gotta work that we gotta work thenumbers backwards so 35 we received 35 yr 47 proper forty seven and seventy seven so we obtained 77 thousandworth of charges or 77,000 expenses minded 30,000 Papa so we received $forty seven,000with costs out of out of the entire calculations that we did right here sowith the $200,000 AR be subtracting the seventy seven thousand greenbacks we getabout 120 three thousand greenbacks proper so that is our target purchase fee soif you wish to have $30,000 revenue out of this deal we gotta have it inside no morethan hundred twenty three thousand dollars proper so is it feasible to golower than 123 thousand bucks with just right negotiation knowledge yeah certain so ifwe go curb than hundred shall we say we were able to purchase this property for ahundred and ten thousand greenbacks very well so we truely made thirteen thousanddollars further on our revenue right if all these numbers been constant so if weknow that repairs are going to be stay are simply going to remain at thirtythousand greenbacks and that is the conservative facet that means if even ifit’s going to cost heaven and earth it’ll price you thirty thousanddollars to repair and yeah that’s that is a just right number to stay with so so withthe buy rate how you negotiate goes to topic if you have a goodnegotiation potential one factor bear in mind is that you make cash while you purchasethe real property deal not when you promote it whilst you stroll into the deal youshould have already have this quantity all laid out proper there on the spot rightso at present I never go right into a single real property deal certainly a fix and flipwithout having these numbers in my head someplace uh and thenactually running in from there so I ought to understand what the top goes to looklike right never walk into a real property deal with out understanding your answerstrategy and what is your final result going to be so no no that quantity in your headright no that end result and for those who so if you don’t know these numbers you’regoing to be led by means of the numbers correct the real estate deal goes to be owningyou now not you proudly owning the real estate deal does that make experience so you want to havea number on your head calculate it go by way of this analysis and appreciate ifthis is a good deal or now not a great deal and don’t forget that is whatever that Isee a number of freshmen and new actual property buyers run into is they try tofudge with the ARV to make the true estate deal work proper do not do thatbecause you are losing money if you are trying to if you’re seeking to fantasizethe ARV into whatever that is now not ok if the ARV doesn’t work with the givencalculations and if that if you know for a fact that the purchase priceis not going to come out to be that means then yeah do not do not do the actual estatedeal proper don’t do it due to the fact that you could lose cash and if the market and thenumbers are telling you one factor however your coronary heart is telling an additional let’slisten to the numbers first and then hearken to the guts ok so I justshowed you guys the elemental foremost evaluation on a repair and flip deal correct sofor those people who are company new you could no longer realise each of the numbers andthe small print of it all so like I mentioned i’ll go ahead and begin a entire nothervideo sequence to exhibit you guys tips on how to talk the ARVs the best way to estimate therepairs the way to estimate the holding fee and how to elevate money proper learn how to alsobuild business credit that is that is a entire nother matter that we can get intothat’s going to support you a lot entering actual estate deals correct so I’llcover these movies within the coming weeks and you’ll see it so those are the videoseries i will go and create and you can see them if you’re subscribed tomy channel for individuals who should not subscribed to my channel do yousubscribe to them because i’m going to go and share ton of knowledge how to raisemoney correct that is the largest task that i’m seeing with new buyers howto negotiate the best way to run these numbers so all these videos are going to be comingout very soon so do you subscribe to my channel and i’m going to show you guys thedetails of calculating all these numbers and doing other matters like raisingmoney and you go that is going to help you start yourfixing foot industry now i’m additionally watching for qualified trainees to workwith me on a aspect-by using-part degree so if you’re considering getting qualifiedto work with me as a trainee and a associate go to investor coaching thatinfo i’m looking for certified candidates to go into the method andwork with me and i can in my view mentor and coach you alongside the way in which so go toinvestor coaching that data i’m going to throw the video down in the link on the videoright here you can be capable to peer it and constantly you probably have any questions goahead and drop them down beneath and i’ll answer them for you guys as quickly aspossible alright thanks for gazing guys