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Similaire à Robyn Thompson's Junkers to Millions Boot Camp Financial Leverage Document
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Robyn Thompson's Junkers to Millions Boot Camp Financial Leverage Document
- 1. Robyn Thompson’s Junkers to Millions Boot Camp
- 2. 2 Financial leverage Straight forward terms Customer Service Fully Capitalized Benefits of Working with Lima One Capital
- 3. 3 Traditional Hard Money vs. Lima One
- 5. 5 1. Receive application 2. Borrower underwriting 3. Receive PSA and Rehab Budget 4. Request appraisal 5. Request initial inspection 6. Order closing How It Works
- 6. Who is Lima One Capital?
- 7. Who is Lima One Capital? Before Client Down Payment: $23,780 Loan Amount: $98,924.80
- 8. 1Who is Lima One Capital? Sales Price: $191,000 Client Profit: $53,508.44 After
- 9. 1918 Main Street Atlanta, GA 30337 Sales Price: $180,000 Purchase Price: $77,000.00 Rehab Budget: $45,000.00 Down Payment: $24,600.00 Monthly Payment: $1,108.64 Lender Fee: $3936.00 Loan to ARV: 57% 9 Before After Example
- 10. Purchase Price: $77,000 Rehab Budget: $45,000 + Closing Costs: $1,000 Total Costs: $123,000 Total Costs: $123,000 x Down Required: 20% Down Payment: $24,600 10 Calculating Down Payment
- 11. Total Costs: $123,000 - Down Payment: $24,600 Gross Loan Amount: $98,400 Gross Loan Amnt: $98,400 x Origination Fee: 4% Lender Fee: $3,936 11 Gross Loan Amount: $98,400 + Lender Fee: $3,936 Total Loan : $102,336 Calculating Lender Fee and Total Loan Amount
- 12. Loan Amount: $102,336.00 x Interest Rate: 13% Total Annual Interest: $13,303.68 Total Annual Interest: $13,303.68 12 Months Monthly Payment: $1,108.64 12 Calculating Monthly Payment
- 13. Loan Amount: $102,336 ARV: $180,000 Loan to ARV: 57% 13 Calculating Loan to ARV
- 14. 1918 Main Street Contract Sales Price - $180,000.00 Minus Down Payment – $24,600.00 Realtor Fee - $10,800 Loan Amount - $102,366 Interest Payments (5 Months) - $5,543.20 Profit - $36,690.80
- 15. 1918 Main Street What Lima One made: Origination: $3,936.00 Monthly Interest: $5,543.20 Total: 9,479.20 What our client made: Profit - $36,690.80 Return on Investment: 121%
- 17. RENTAL30 Benefits Long Term Rentals = Long Term Financial Security Build your portfolio Future wealth and security Cash flow & Passive income
- 18. Program Highlights 30 year fixed/6.5-8% Low Minimum Loan Amount of $45,000 No down payment up to 75% LTV Close Quickly Credit score as low as 630
- 21. https://www.limaonecapital.com/robyn-thompson/ How do I get Started
- 22. Questions?
Notes de l'éditeur
- Financial leverage- Our clients are able to leverage their capital to complete more than one project at a time by only bringing 20% down at closing as opposed to being responsible for 100% of the project at a given time. Many hard money lenders funnel deals to other lenders or other investors. By doing so, they get paid on top of the other lender fees which drive the costs up for the borrower. We have no other fees and fund the deals ourselves as opposed to broker them to another lender. Straight forward terms- Our terms do not fluctuate between deals, based on credit, or on the size of the loan. Many competitors offer terms that are variable to the project or the borrower. Longer terms- 13 months with no prepayment penalty allows for our borrowers to take the time to complete their project without worrying about a shorter loan pay-off. If they do pay-off early, there is no early pay-off penalty for the borrower to occur. Fully Capitalized-We are able to provide financing to any deal at any time, there is no delay with trying to raise capital for each loan that we do. If qualified, borrower is able to do multiple deals at a given time. Customer Service- We pride ourselves on customer service and offer fast turnaround times, quick inspection times, and have teamed with professionals that work quick and efficiently. Clients have access to online accounts to manage their projects through the process. Security in Work Completion- Since the rehab budget goes into an escrow account where draws are made based on completed work, our clients are able to verify progress made on their project through the inspections. These inspections not only protect our clients from misused funds, but also protects Lima One in the occurrence of a project not being complete. No junk fees-These include application fees, credit fees, pre-approval letters, etc. Often, our competitors will charge for each of each of these services. This ties into our excellent customer service that we pride ourselves on and that our clients notice.
- No junk fees-These include application fees, credit fees, pre-approval letters, etc. Often, our competitors will charge for each of each of these services. This ties into our excellent customer service that we pride ourselves on and that our clients notice.
- Loan Amount ÷ ARV = Loan to ARV Percentage ARV comes from the appraisal that is completed We lend up to 65% of the ARV. If the loan amount goes over slightly we can adjust the down payment amount to lower loan amount and LARV Total Loan amount divided by ARV
- I – Income Most investments offer either a consistent return (i.e. annuities) or the potential for equity appreciation (i.e. stocks). Real estate offers both. Good buy and hold investments offer positive cash flow from rents that not only offset the expenses and debt service, but also provide a monthly income. The average annuity only pays out 3.27% per year. A halfway decent buy and hold investor can beat that any day. D – Depreciation The IRS allows you to write off the value of any property over 27.5 years. This depreciation counts as negative income, but it’s only negative on paper since the costs of keeping a property in good condition can be paid for out of the rental income. Thus, the depreciation “losses” wipe out the positive cash flow from the property and remove any tax obligation. Unfortunately, due to the Tax Reform Act of 1986, only active investors can take advantage of this. E – Equity Build Up Real estate is the easiest investment to leverage (more on that later). With a mortgage, unfortunately, comes the obligation to pay it back. Fortunately, the cash flow mentioned above allows an investor to pay back that mortgage without spending any of their own money. Instead, the tenant pays for it. Furthermore, each month — assuming you don’t have an interest-only loan — part of the principle is paid off, too. Right off that bat, with a 30-year amortization, about 15 to 25 percent (depending on the interest rate) of each loan payment pays off the principle of the loan and adds to the equity you have in the property. A – Appreciation Real estate, like any other asset, can go up or down in value. Many have been scared off by the crash in 2007. However, a look at the long term history of real estate prices is encouraging. The trend is consistently up. In fact, over the past 40 years, real estate has gone up an average of 4.62% per year. The combination of accelerating equity pay down (with each payment, you pay more principle and less interest), and appreciation means that the investor’s equity in any given property will grow exponentially the longer they hold it. . Which leads us to the next point: L – Leverage If you invest $20,000 into the stock market, and it goes up 10 percent, you’ve made $2000. If you invest that same money into real estate, you can buy a $100,000 property with an $80,000 loan. Let’s say it only goes up 5 percent. Well, you’ve made $5000. Or in other words, you’ve made a 25 percent return!
- Average turn around time is 7-10 business days. This depends on the schedule of our appraiser Construction draws can be made based on completed work. The borrower will need to start the rehab project and make draws once line items have been completed. They can also do a partial draw. For example: Our borrower has budgeted $2000 for plumbing. The borrower starts and finishes the rough plumbing and makes a draw for $1000. We will order an inspection with our inspector who will go to the property and verify that the rough plumbing has been completed. We will wire $850 to the borrower ($1000 Draw request - $150 inspection fee) for the completed rough plumbing. Once the borrower has finished the plumbing, they can request the remaining funds to be sent. Again, the inspector will go to the property and there is a $150 inspection fee that is directly paid to the inspector via the escrow account