Get Social With Us
[vc_separator type='transparent' color='' thickness='' up='10' down='10'] [social_icons type="normal_social" icon_pack="font_elegant" fa_icon="fa-adn" fe_icon="social_facebook_circle" size="large" link="https://www.facebook.com/" target="_blank" icon_color="#ffffff"][social_icons type="normal_social" icon_pack="font_elegant" fa_icon="fa-adn" fe_icon="social_twitter_circle" size="large" link="https://twitter.com/" target="_blank" icon_color="#ffffff"][social_icons type="normal_social" icon_pack="font_elegant" fa_icon="fa-adn" fe_icon="social_linkedin_circle" size="large" link="https://www.linkedin.com/" target="_blank" icon_color="#ffffff"][social_icons type="normal_social" icon_pack="font_elegant" fa_icon="fa-adn" fe_icon="social_instagram_circle" size="large" link="http://instagram.com/" target="_blank" icon_color="#ffffff"]
Simply Do It / 2016

7 Characteristics of a Profitable Rental Property

Simply Do It 15.12.2016 Blog, Rental Property, US Real Estate 0

Regardless of whether you’re a seasoned investor or a novice who is just starting your real estate investment journey, when it comes to rental property investments, the long-term goal is to select properties that will continue to hold occupancy and maintain a steady source of income.  Your success or failure in investing depends on your ability to select profitable “cash-flow” properties.  Although this might appear to be a daunting task, there are key features or characteristic that you’ll always find in a profitable rental investment.

Here are the top seven characteristics to look for in any potential rental investment property:

  1. Neighborhood:  The neighborhood you select will be the determining factor on the type of tenants your rental property will attract.  Select a neighborhood that has consistent housing prices and few empty or unsold houses, is serviced by good schools, is not dependent on a university or other seasonal tourists support, and is not next to multi-unit housing.  A neighborhood that fits within these parameters is more likely to attract reliable tenants and support a rental house that wishes to be filled more often than it is vacant.
  2. Property Taxes:  The goal is to make money on your investment, so you want to be aware of the property taxes for any perspective property.  Selecting a home that will eat more than 50 percent of your income via property taxes isn’t a wise long-term investment.
  3. Commutability:  Believe it or not, the commutability of a home is one of the top deciding factors for anyone looking to rent.  If the potential property is too far from their job, perspective tenants won’t even consider looking at your property, no matter how much potential it has.  Do your research to find out what major employers are already in the area or might be coming to the area in the near future.  Big employers require a large pool of employees — which means more perspective tenants for your property.
  4. Local Amenities:  Let’s face it, no one wants to live any place where it will take them 20 minutes to drive to the nearest grocery store or restaurant.  Drive the area and see for yourself what amenities it offers — how many grocery stores or restaurants are close by; are there near by parks or community pools; are there local events or farmers markets; and are there other venues, such as theatres, malls or gyms near by.  Amenities mean convenience and that equates to a more attractive rental opportunity for perspective tenants.
  5. Future Development Plans:  The local municipal planning department will have details on any new developments that are slated for the area.  Getting into a great neighborhood with tons of future growth plans is definitely a key for a successful long-term rental investment property.
  6. Listings and Vacancy Activity: Too many listings or rental vacancies in one area could be a sign of a neighborhood that has “gone bad” or one that is no longer desirable.  It would be hard for your rental property to compete in an area that is already saturated by listings —- especially if those listings have been sitting for a lengthy period of time.  Also, high rental vacancy rates could potentially require you to drop your rent in order to complete, which will impact your return on your investment and income.
  7. Curb Appeal:  When it comes to real estate, looks matter!  When choosing your rental investment, select a home that has curb appeal…one that when a potential tenant drives up to it, it immediately gives them a sense that this is a warm and inviting house.  You’ll want a house with landscaping you can maintain, an updated exterior and one with a modern/maintained fence.  If potential tenants pull up to a property with a delapitated fence, loose siding and a yard full of weeds, the odds of them stopping and coming inside to take a look will decrease exponentially.

Once you understand the characteristics of a profitable rental investment, you’ll find it will become second nature to choose the best fits for your portfolio when evaluating properties.

Looking to further expand your investment portfolio or take your first steps on your real estate investment journey?  Then contact the Simply Do It team and let us assist you in finding the best properties for your portfolio and guide you towards long-term success.

Purchase + Renovation Terms & Requirements – Flipper’s Loan

Dani Beit-Or 14.10.2016 Fix and Flip, General Investing, Investment Properties, Mortgage 0

This a conventional loan that if a good fit for a flipper.

The loan is design to allow both purchase and rehab to be financed as well as 6 months of principal and interest payments.

Here are the terms as provided by the lender.

Please note: Simply Do It has no control or influence about this program.

 

Loan Terms

  • 15% down of entire project
  • 1% origination fess
  • 5.5% rate
  • Can roll in up 6 payments
  • Reserve component 15% (between 10-20% depending on size of project) of the reno budget added to loan.
  • HUD consultant (3rd party neutral) – $1500ish – goes multiple times based on progress (similar to inspector) – approves bank draws.
  • Cannot be done to an entity – only an individual.
  • At Month 7 will start making reg. mortgage payments (after 6 months rolled period is over)
  • No pre-payment fees
  • Loan converts to a 30 yr loan.
  • Banks does an ARV appraisal as well.
  • IMPORTANT: to use such loan you will need some working capital ($10,000 – $40,000, vary by project size) in addition to your down-payment and loan fees.  This working capital will be used to front the expenses to pay for labor and material needed to get the project going. The bank on this loan is reimbursing your expenses based on progress (multiple draws) and not fronting you cash to get started. At the end of the renovation, once the bank reimbursed you for the final stage, that working capital will be returned to you. In simple terms working capital is used to get the project moving.

 

Documentation Required

There is some documentation that will be needed to process your file.

– Copy of  ID and ID of anyone that will be co signing
– 2015 & 2014 W-2’s
– 2015 & 2014 Federal Tax Returns (all pages)
– Current pay stubs (one month’s worth)
– Copy of last 2 months bank statements to show funds for closing (We need all pages of the bank statements)
– Any Large deposits over $250 may need to be sourced.
– Reserves can also be in the form of savings accounts, investments in stocks, bonds, mutual funds , cert. of deposits, Money markets or trust accounts.
– Vested Retirements savings and and Cash value of vested life insurance can also be used to show reserves if you have these statements please send them as well.
– Copies of current mortgage statements on each property you own
– Copies of Tax bills for each property you own
– Copies of ins on each property you own (declaration pages)
– Copies of leases on each the property you are renting out.
– Purchase price and date of purchase for each property you own.

As a real estate investor documentation will be greater than other borrowers.

There may be more documents that will be required, but those were the basics that are needed to start with.

 

6 Things to Avoid When You’re Buying A Home:

Don’t Change Jobs
Changing jobs before or during the loan process can create a problem in qualifying you for a loan, particularly if that job is in a different line of work or at a lower rate of pay than your current job. Many loan programs require borrowers to have a two-year work history.

Don’t Switch Banks
It is best to leave your money where it is until your loan has closed. Moving your money to a new bank or even into a new account can wreak havoc with the verification process. Most new accounts opened or large deposits made in the last six months will have to be explained as to the source of funds. If you are transferring money from investment or retirement accounts, make sure you keep the withdrawal/deposit receipts and make sure you clearly show where you deposited the money.

Don’t Deposit Irregular Funds Into Your Accounts
Before depositing any funds that are out-of-the-norm into your bank accounts, contact your loan originator for advice. The simple rule of thumb is that anything you deposit outside of your regular paychecks will need to be verified through an extensive paper trail. Avoid making cash deposits as these are very difficult to document. Again, contact your loan officer for advice.

Avoid Paying Off Bills
Your loan originator will advise you if it is necessary to pay off bills to help you qualify for a loan. They will also show you the best way to pay off bills to make sure you have the evidence needed to verify the bill has been paid in full.

Avoid Big Purchases
A new large monthly payment can affect the amount of home you qualify for and it can make it difficult to get your loan approved.

Avoid Credit Inquiries AND Credit Disputes
Your credit score will be affected if your credit is run many times in a short time period. Since interest rates and good credit scores are directly linked, it is in your best interest to minimize the number of times your credit is pulled. DO NOT dispute items on credit as disputes will hold up the process until resolved.

When in doubt, always ask before

 

Flip or Rental: What’s Your Best Real Estate Investment Option

Simply Do It 23.09.2016 Blog, Fix and Flip, General Investing, Rental Property 0

Flip or Rental: What’s Your Best Real Estate Investment Option

The Simply Do It real estate investment network offers two types of real estate investment opportunities: flipping or renting.  Both options undergo a stringent due diligence process before being presented to our investors, so you can be sure that they are going to be worthwhile; but as a new investor, how do you know which option is better for you?

Before you can answer that question, you must first determine your investment goals.

  1. Are you looking for a long-term investment or a short-term investment?
  2. How much do you have to invest?
  3. Do you have a target amount you are wanting to obtain for a specific purchase or are you simply wanting grow your financial security?

Once you’ve established the answers to these questions, you will be able to sit down with our investor team and create a custom strategy that will assist you in achieving your financial goals.

Flipping vs. Renting

Now that you’ve established what your investment goals are, it’s time to take a closer look at the available options and decide what will work best in helping you achieve your end goals.

Flips

The first option is to invest in flipping properties; the best option for someone with short-term goals. The draw to flipping is that it will typically produce a quicker return on your investment, as most flips last between 5-6 months.

While there is a certain draw to receiving a quicker return, you do run the potential risk of things going wrong during the flip, such as the house not selling quickly and it sits on the market for additional months.

While the unknown risks might sound scary initially, the Simply Do It local teams are used to dealing with them and have the expert experience and knowledge to quickly mitigate them should they arise.

Rentals

The second option is ideal for anyone seeking a longer-term investment opportunity.  Rental investments will not produce the quick windfalls of their flipping counterparts; however, they can create a passive income from your overall portfolio of properties.

While there are still risks associated with investing in rentals, you’ll find that the Simply Do It team has the knowledge and experience to pick the smartest rental investment properties.  They will also work with you, teaching the skills needed to manage your properties for the long haul.

Rentals AND Flips

The third and final option is to create a real estate portfolio that includes both flips and rentals.  This strategy will provide you with quick returns while also setting you up for a longer-term, continual source of income.

Regardless of the path you choose, the Simply Do It investment team will work with you to help you establish what is best for your investment goals and will be there with you every step of the way to guide you through the entire process.

Ready to start down the path of real estate investment?  Then contact the Simply Do It team and take the first step towards your investing future.

We Apologize But Our Flips Carry No TV Drama

Simply Do It 20.09.2016 Blog, Fix and Flip, General Investing, US Real Estate 0

For Investors Who Are Interested In Short-Term Investing

Stay up-to-date by liking us on Facebook & following us on Twitter!

We have done about 80 flips in different parts of the country such as Boise, Atlanta, Tampa, and Dallas. In almost all, we have partnered with the investor with our own money.

You can join us on our next flip – no experience needed.

Here’s how the process works – we do the heavy lifting:

  1. Our local team on the ground scouts and places offers on flip-able houses on a weekly basis.
  2. Once we get a house under contract, we send our general contractor to do a full inspection, scope of work, and put together the renovation budget.
  3. Using the ARV (after repair value) figure and budget, we re-evaluate the project.
  4. If all looks good – IT’S A GO!
  5. We let you know about the flip.
  6. Typically, we fund the project with 1-3 investors (from our network).
  7. We complete the purchase of the house.
  8. Renovation starts.
  9. We produce bi-monthly updates for you.
  10. Renovation completes – time to list the house.
  11. Show and wait for a buyer.
  12. Negotiate and close-sell the house.
  13. Calculate flip profit and distribute profits.

What Is Your Involvement:

  1. Fund the project as an owner-investor (equity position) or as a lender (like the bank – debt position).
  2. Receive routine updates.
  3. Wait for sale.
  4. Receive proceeds.

Why Do We Offer Flips to You (and not take all the flips for ourselves):

  1. We want to offer investors a short term investing vehicle to generate short-term cash.
  2. We benefit from the flip’s success – profit sharing.
  3. In most projects, we invest our funds alongside yours.
  4. Unfortunately, we cannot do all the projects by ourselves, as much as we would like to.
  5. On average as an equity position, you will make 9.5% ROI in 6 months – NO GUARANTEES!

What’s Next

  1. Take a look at the project below.
  2. Let us know if you have more questions.
  3. Let us know if you would like to be involved in this project.
  4. Email or call us for more details.

Our Info
Simply Do It
meet@simplydoit.net
650-440-5544

More Rental & Flip properties in Houston, Tampa, Oklahoma City, Nashville, & Dallas-Fort Worth ReiStart.com

Sample Flip: 3755 Prado Dr, Sarasota FL  

  • No flipping experience needed.
  • We have the time, knowledge, teams, and expertise.
  • We can even partner on this deal.

Quick Summary (estimated figures)
Purchase Price: $180,000
Closing Costs: $1700
Rehab: $35,000
Overhead/Holding: $8,000
TOTAL ALL-IN FOR THIS PROJECT: $225,000
Projected Investor’s Net Profit: $22,500
Projected Annual ROI: 20%
Projected Duration: 4-6 months (closing to closing)

About This Project

  1. For more info, photos, video and COMPs: https://shar.es/1dcho7 (Need Membership to Access)
  2. We have it under contract.
  3. The property is purchased inside a Land Trust.

About The Land Trust
It’s a way to hold real estate with much more simplicity than an entity or LLC.

Financing/Purchasing Options/Scenario
1. You buy it solo (by yourself) cash or private financing.
2. Conventional financing is NOT an option as a purchase method.
3. We partner up.
4. We partner up w/ a 3rd investor.
5. We partner and use a private lender.
6. You participate in the deal as a private lender.

Funding update: $75,000 funds are committed to-date!

Your Next Step
1. Let us know ASAP – dani@simplydoit.net or 650-440-5544
2. Tell us which financing option (above) is most relevant for you and how much funds you have available to invest.
3. We have this property under contract.
4. Closing is planned for 5/25/16 – a quick decision is needed.

Financial Analysis

Purchase Date   6/10/2016
Listed for   $187,900
Purchase Price   $180,000
Closing Costs   $1,687
Estimated Renovation & Holding   $35,000
Property Taxes, Ins, Staging, Utilities   $8,000
Estimated All-in   $224,687
     
Projected Selling Date   11/16/2016
Target Selling Price 126 $274,806
Sales Comm 4.5% $12,366
Sales Expenses   $3,916
Projected Profit   $33,836
Project ROI   15%
     
Profit Sharing    
Investor 67% $22,670
Local Team 0% $0
Simply Do It (Facilitator) 33% $11,166
     
Investor’s Return On Investment (ROI)   10.09%
Duration (months)   6
Annualized ROI   20.18%

*The performance information shown are projections. These are not actual results. These projections are based upon various assumptions and representative properties. No representation is being made that a performance record similar to the projected returns will or is likely to be achieved.

Investing in Your Future

Simply Do It 09.09.2016 Blog, General Investing 0

Investing in Your Future

With the economy once again stable and on the rise, many of us are looking for ways to rebuild our retirement savings after the economic fallout of 2009.  While the stock market is a tried and true investment resource, its ebbs and flows are out of our control and can be too risky for some.

On the other hand, real estate has withstood the test of time and remains a solid investment opportunity.  For those who are searching for a way to grow their returns within a short period of time, purchasing, updating and selling houses is an excellent opportunity.  Looking for a longer term investment?  Then, real estate rental properties might be better suited for you.  But if you’ve never flipped a house or purchased an investment property before, where do you start?

Simply Do It has created a guided investing program for those who are seeking investment opportunities but who have little to no experience in the art of flipping homes for profit or in purchasing and managing rental properties.  The guided investing program provides both the business resources and hands-on educational training you need to become successful.

Benefits of Guided Investment

Real estate investing can appear to be an overwhelming undertaking for those who have never done it before.  This is why the Simply Do It guided investment program was created.  Through our program, you’ll participate as a private lender and receive personal coaching and support throughout the process, giving you a worry-free hands-on training opportunity.  By the time you’ve completed the program, you’ll be a pro!

There are many benefits to private lender real estate investing via the Simply Do It program:

  • Real estate investing is something virtually anyone can do.  It’s a short-term engine that helps fuel your long-term investing goals.
  • Real estate investing is something that can be done remotely.  You can invest in properties in the hottest markets in the country without having to live there to locate, secure, or manage the properties.
  • No experience is necessary when working with Simply Do It.  Our team will find and manage the projects, using our local resources, and provide updates to you throughout the projects life-cycle.
  • Through our guided investing program, you won’t carry all the financial burden — we will be investing right alongside you.  
  • Conventional financing for investment properties can be tricky to obtain; however, we’ve got it down to a science and will be managing all aspects of financing for the project.

While no investment is completely guaranteed, our guided investing program is virtually worry-free and has been proven successful time and time again.  We will be there with you every step of the way to ensure you the best possible return on your investment.

Ready to start down the path of real estate investment?  Then, contact the Simply Do It team and take the first step towards your investing future.

One on One with An Investor: Nathan Parrott

Simply Do It 01.09.2016 Audio, Blog, FAQ, General Investing, Investment Properties, Podcast, Recording, Uncategorized, US Real Estate 0

Learn from an actual investor about investing remotely and what you need to know to succeed as a remote investor when your local area doesn’t have the great opportunities compared to remote real estate markets.

Guest: Nathan Parrott, Experienced Remote Investor.

Hosted by Dani Beit-Or, Simply Do It Real Estate Investing.

For more info: http://simplydoit.net/guided-investing/
To see properties: http://reistart.com/

 

Recording via Podbean

Streamline Your Search

Simply Do It 23.08.2016 Blog, FAQ, General Investing 0

Streamline your search by spending 5 minutes up front.

You don’t go the grocery store without a list, so why would you shop for a house without a list of what you’re looking for?

It only takes about 5 minutes to set up the criteria most important to you.

Maybe you’re looking for highly rated schools or a certain amount of square footage. As an investor, you’re probably even more interested in the rent/price ratio and the average return on your investment after owning the property for five years.

It’s simple to determine whether properties meet your standards. Just set up a chart (like the one shown) listing the minimal criteria for what’s important to you in one column.

Then, when a new property becomes available, simply flow in the numbers. You will know immediately if the property passes or fails, and whether you want to buy it as an investment.

This one simple chart can save you invaluable time. Otherwise, you will be inundated with property listings that don’t meet your criteria.

Don’t have the time to create your own criteria chart? Use ours. We’ve taken the time to create a criteria chart that fits our investing goals so you and our investors can benefit!

http://simplydoit.net/excel