2. HARD MONEY
• Is not part of this training
• Can be utilized, but this training offers
alternatives to Hard Money Lending
• Thus, this will be the only reference to Hard
Money as it is an established and accepted
source
3. TRAINING
• Draws potential clients to your business like
EMAC is achieving with this training.
• You can develop trainings for those who Flip
and/or Rehab properties, which will result in
securing these industry customers to utilize your
services.
4. Formulas
• Rehabbing and Flip people use formulas to
achieve success.
• 70% Rule or 50/20 Rule are guides so that those
wishing to get into the rehabbing / flip business
can be successful with the first property
5. 70% Rule
• In determining value, take the sq ' value,
(using a multiple of close related properties
for sale dividing the total square feet by the
total asking prices), which gives you an
average sq ' value for a specific area.
• Multiply this figure by the square feet of your
selected property, then; multiply this sum by
70% which equal your value.
6. 70% Rule Example
• 5 Properties, totaling 12,500 square feet
accumulative, all totaling One million dollars,
would result in a $125. square foot average
value.
• Then; multiplying 125. by 75% would realize
$93.00 of your actual value per square foot of
your selected property.
7. 50 / 20 Rule
• Compensates for Repairs and bringing the property
to the point to flip or move into
• %0% being your base Value, leaving 20% for rehab,
repairs, refurbishing.
8. Rule xceptions
• If you have the property Pre-sold
• If you are going to Occupy
• If there are Unseen Amenities
• If you have Personal Interests
• Lot Value versus Improvements
• Zoning, IE: Mixed Use
• It will cash flow renting it
9. Finding Properties
• Property Tax Auctions
• Bank's 30-60-90 Day Late Lists
• Foreclosure Notices
• Trustee Notices
• Drive Around the Neighborhood
• Referrals
• Lien Remedying before Tax Auction
• Wholesalers
10. 70 Rent Rule
• Take a sampling of multiple properties
offered as Rentals. Take the total
accumulated rent amounts and divide by the
sample quantity.
• Then; multiply this amount by 70% and this
is your assured Rent / Lease figure that will
bring a rental to the selected property
quickly.
• If it Cash Flows, it works!
11. Resources
• www.hudstore.com
• www.foreclosure (name of City).com
• County and Town websites
• News Papers, Twitter, Facebook, Linkedin
• Your presentations that you are putting on
12. Financing
• Rehabbing and Flip clients, if they could free
up their own money, can generate added
business
• There are ways you can provide them
financing that are not traditional and regularly
known
13. Business Lines of Credit
• You can Broker the client to a source for a
Business Line of Credit:
• You can fund on your Business Line of
Credit being sure to remedy the short-
term loan to the rehabbing or flip
property to repay the Business Line of
Credit
• You can Outsource the Loan
