What I like most about him, is that he is not all talk. How many vidoes can you find where someone is breaking it down like this for the younger crowd. In additon to that , I love the mentoring, projects and free stuff he gives.
This ABSOLUTELY helps Jay. Thanks for explaining it, you are very much appreciated bro. Also, thanks for the fresh videos man, I see you just got these up Nov 5, 2013 and it's Fri Nov 8 2013.......so relevant.
i bought 5 composition notebooks and a real nice pen haha! online notes never really felt the same as writing it down on paper. re- running all these videos and filling these books up! appreciate you Jay!
thanks for doing this vid just subscribed to your channel, feel like you just spoon fed me real valuable info, watched your video on credit too, great job thankyou so much!!!!!!
Question, Jay: How do you lock up that deal? Meaning, if I crunched the numbers and presented them to a partner, how do I ensure that partner won't steal the deal from under me? Do I need to get a contracted signed with the seller and maybe even put down some earnest for it? Can you explain that processes? Thanks!
Bob Hope As an attorney, and based on my prior experiences as an investor, I find that prior to any information or numbers are presented you have a confidentiality agreement or non-compete clause signed by both the investor and yourself. Thats the safest bet. Hope that helps.
*sigh* go look up a one page sales contract. you write up a one page sales contract, have the county recorder record it, it clouds the title, so that no one else can make a claim to the title without you being involved, then you can wholesale the property, flip it, or buy and hold.
Yes. You get a contract on the property, with an inspection period. During that inspection period, you approach your investors. If they don't agree to back you, you can back out of the deal during the inspection period without breaching the contract. The contract should be written with that stipulation. If you do put down earnest money, the contract states that the earnest money would be returned to you, if you cancel the deal before the inspection period ends.
My question is how is this a fix in flip if you spending 50k for a property in let's say after appraisal you say it comes out to be 190k are you speaking in terms of somebody financing the property because no one out the gate is gonna drop a 190k on a house cash like that you be holding on to property longer then 6 months can someone answer this ? 🤔🤔
Mr. Jay! I can help you. I see you boi and I believe in your 100% pure vision. I've been waiting for people like you... Because just like you I wonder why are "they" not stepping up, and just like you I could never sit by and watch... Not built like that. Please can we correspond via email? I am in New York City and I'm available everyday.
You're doing a great job son, wish I had know of you before I spent Thousands with Carleton Sheets & Ron Legrand, but it's never too late, we'll hook up some day, & it will be on like a pot of neck bones!
The video is about After Repair Value (ARV), not as-is value. Usually a hard money lender will lend at 65% of the ARV. So you need to buy the property that the purchase price, and the rehab costs and the "soft costs", i.e: attorney, title company, and other costs mentioned above, all combined are no more than 65 cents on the dollar all-in. This is very hard except from a bank-owned REO. Typically you would look at a 2 unit or 3 unit, so that you can cash flow the property once it's performing, and you can pay carrying costs out of rents, since it's very hard to buy the acquisition and rehab cost at 65 cents on the dollar of the ARV
i want to enter the real estate busines....do you have to be certified or licensed in real estate in order to follow this process... i want to be able to purchase a home and flip it...just want to know is there any certification to be able to do this?
One Problem with the numbers. The 6% commission is based on the sale price of the property after rehab. So the commission would be $11,400 (6% of $190k), not $3K (6% of $50K). Otherwise, everything else is great. BTW, I'm a Realtor.
Na Luvs No, that's incorrect. There is an understanding in this business that the RE agent is hired for most immediate transaction, in this case it is the purchase of this property. There can be arrangements made as far as how often the owner wants to retain the agent's service, which would be specified in a contract but in general the RE agent had his/her commission based on the purchase price for this particular example of transaction. What happens after that is up to the owner entirely and is under no obligation to use the same agent for the resale unless they already agreed through contract in the beginning. But of course if there is no contract or verbal agreement, it is in the RE agent's best interest, if they have any hustle at all, to want to have another piece of the pie. I personally test them and like to see if they take the necessary steps to be in position for me to chose them for next deal, purchase or resale. It just shows me they have the hustle. Otherwise what is the guarantee that the complacent agent will resale my property within the set amount of time that I want? Let alone at above market price.
One, I'm not a woman. Naluvs means, Na (me) Luvs the creator, people, world & life. No Error. He is stating using a Realtor to list the property. Commissions are already included, not added. Thanks Paul Glover for the heads up. And for the record, Jay Morrison is still the real deal!!!!
Na Luvs. You are not in error. The 3k he mentions in this example, would be paid by the original seller of the property, not the investor (Sellers Pay The Commission). Therefore what you said is correct. If I Realtor is used to acquire the property by the Investor, that service is free to the investor. Once the Investor completes the repairs and lists the property for sale at 190k, he is now the Seller and would be responsible for paying the commissions (If he chooses to use a Realtor).
Wait I don't get it... If I buy a house for 50k I will still have to pay mortgage? I thought once you buy a house you just have to pay like utilities and stuff.
wait... I'm lost. looks like he only made 6k in 6 months with this example. Not really that lucrative IMO, unless I missed something. Is this in relation to flipping other properties as well?
Yes. If the property sells for $190K and all the cost after 6 months (rehab, fees, etc.) equal $92K, the you subtract $190K (sale price) - $92K (your acquisition, fees, etc) = $98K left.
What I like most about him, is that he is not all talk. How many vidoes can you find where someone is breaking it down like this for the younger crowd. In additon to that , I love the mentoring, projects and free stuff he gives.
Thank you for your service 🙏
This is what our communities need more great job
Taking all the guess work out of it. Excellent video.
Thank you I have been waiting for someone to explain it in a straight forward and easy to understand way.We got to get up and talk
The goat. Straight to it.
the quality of this information is very valuable. Thank you for providing this opportunity.
man you are on point! thanks for posting this video.
Great advice man...thank you for posting.
Thank you for explaining! I look forward to meeting you someday. I just signed up for your course!!!!
This ABSOLUTELY helps Jay. Thanks for explaining it, you are very much appreciated bro.
Also, thanks for the fresh videos man, I see you just got these up Nov 5, 2013 and it's Fri Nov 8 2013.......so relevant.
I got this part, thanks to you Jay, moving a little slow but I am still in this race brother.
i bought 5 composition notebooks and a real nice pen haha! online notes never really felt the same as writing it down on paper. re- running all these videos and filling these books up! appreciate you Jay!
Jay, this was wonderful!!!!
Very good video Jay! Insurance and carry costs are so important.
thanks!
thanks for doing this vid just subscribed to your channel, feel like you just spoon fed me real valuable info, watched your video on credit too, great job thankyou so much!!!!!!
Jay you really inspired me and make selling real estate do able bro. thanku..
I really appreciate these Jay
That feds watchin instrumental tho 😂 ... the hood professor
This video helped a lot Great Job!
Give them ppl they money back Jay!
great presentation...thanks Jay...
Thanks for this info... Keep them coming.
LOVE YOU KING,,,,GOT IT!
Do you evaluate deals with this method only with Flips or Rental and Wholesale
I always start with the ARV....
Thanks Jay!
Good sound advice!!
Great video
great demo!
Question, Jay: How do you lock up that deal? Meaning, if I crunched the numbers and presented them to a partner, how do I ensure that partner won't steal the deal from under me? Do I need to get a contracted signed with the seller and maybe even put down some earnest for it? Can you explain that processes? Thanks!
That's a tough one Bob... You make a great point. I hope Jay responds!
Bob Hope As an attorney, and based on my prior experiences as an investor, I find that prior to any information or numbers are presented you have a confidentiality agreement or non-compete clause signed by both the investor and yourself. Thats the safest bet. Hope that helps.
*sigh* go look up a one page sales contract. you write up a one page sales contract, have the county recorder record it, it clouds the title, so that no one else can make a claim to the title without you being involved, then you can wholesale the property, flip it, or buy and hold.
Simon Haileab
Yes. You get a contract on the property, with an inspection period. During that inspection period, you approach your investors. If they don't agree to back you, you can back out of the deal during the inspection period without breaching the contract. The contract should be written with that stipulation. If you do put down earnest money, the contract states that the earnest money would be returned to you, if you cancel the deal before the inspection period ends.
How do you convince a seller to allow you to get an appraisal on their home; before going into a contract to first purchase the property?
My question is how is this a fix in flip if you spending 50k for a property in let's say after appraisal you say it comes out to be 190k are you speaking in terms of somebody financing the property because no one out the gate is gonna drop a 190k on a house cash like that you be holding on to property longer then 6 months can someone answer this ? 🤔🤔
Good breakdown.
Mr. Jay! I can help you. I see you boi and I believe in your 100% pure vision. I've been waiting for people like you... Because just like you I wonder why are "they" not stepping up, and just like you I could never sit by and watch... Not built like that. Please can we correspond via email? I am in New York City and I'm available everyday.
thanks jay
You're doing a great job son, wish I had know of you before I spent Thousands with Carleton Sheets & Ron Legrand, but it's never too late, we'll hook up some day, & it will be on like a pot of neck bones!
Jay good video!
But 50k PP on a house valued at 190k? Does this happen often? What would motivate somebody to sell at that deep of a discount?
The video is about After Repair Value (ARV), not as-is value. Usually a hard money lender will lend at 65% of the ARV. So you need to buy the property that the purchase price, and the rehab costs and the "soft costs", i.e: attorney, title company, and other costs mentioned above, all combined are no more than 65 cents on the dollar all-in. This is very hard except from a bank-owned REO. Typically you would look at a 2 unit or 3 unit, so that you can cash flow the property once it's performing, and you can pay carrying costs out of rents, since it's very hard to buy the acquisition and rehab cost at 65 cents on the dollar of the ARV
Can you break this down a little bit further? An example w/ real numbers would be great. Thank you.
i want to enter the real estate busines....do you have to be certified or licensed in real estate in order to follow this process... i want to be able to purchase a home and flip it...just want to know is there any certification to be able to do this?
Good math session
it's just rolling off his tongue.... one day it will be me
thank u
So the profit we take home is 100k !?
One Problem with the numbers. The 6% commission is based on the sale price of the property after rehab. So the commission would be $11,400 (6% of $190k), not $3K (6% of $50K). Otherwise, everything else is great. BTW, I'm a Realtor.
Na Luvs No, that's incorrect. There is an understanding in this business that the RE agent is hired for most immediate transaction, in this case it is the purchase of this property. There can be arrangements made as far as how often the owner wants to retain the agent's service, which would be specified in a contract but in general the RE agent had his/her commission based on the purchase price for this particular example of transaction. What happens after that is up to the owner entirely and is under no obligation to use the same agent for the resale unless they already agreed through contract in the beginning. But of course if there is no contract or verbal agreement, it is in the RE agent's best interest, if they have any hustle at all, to want to have another piece of the pie. I personally test them and like to see if they take the necessary steps to be in position for me to chose them for next deal, purchase or resale. It just shows me they have the hustle. Otherwise what is the guarantee that the complacent agent will resale my property within the set amount of time that I want? Let alone at above market price.
e K lol she didn't even bother responding
One, I'm not a woman. Naluvs means, Na (me) Luvs the creator, people, world & life. No Error. He is stating using a Realtor to list the property. Commissions are already included, not added. Thanks Paul Glover for the heads up. And for the record, Jay Morrison is still the real deal!!!!
Na Luvs. You are not in error. The 3k he mentions in this example, would be paid by the original seller of the property, not the investor (Sellers Pay The Commission). Therefore what you said is correct. If I Realtor is used to acquire the property by the Investor, that service is free to the investor. Once the Investor completes the repairs and lists the property for sale at 190k, he is now the Seller and would be responsible for paying the commissions (If he chooses to use a Realtor).
Now I Actually re-listened to it the video, I was RIGHT. He said LIST the property. So the commission is paid ARV...After Resale Value. Thanks Paul
Wait I don't get it... If I buy a house for 50k I will still have to pay mortgage? I thought once you buy a house you just have to pay like utilities and stuff.
Is the house cash or on a loan? You have to listen.
Who else is more interested in the instrumental?
6% of 190,000 is $11,400 which would be the final sale price.
I have so many questions! fuuuuuuck!!
Not bad Jay but you left a lot of things out I guess to simplify the explanation.
an appraisal is irrelevant when considering what qualified knowledgable buyers are paying for homes in the area.. null and void
wait... I'm lost. looks like he only made 6k in 6 months with this example. Not really that lucrative IMO, unless I missed something. Is this in relation to flipping other properties as well?
Yes. If the property sells for $190K and all the cost after 6 months (rehab, fees, etc.) equal $92K, the you subtract $190K (sale price) - $92K (your acquisition, fees, etc) = $98K left.
i want to become a seller
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