I didn't even thing about this until right now but I just realized something: I ripped down every single one of my 2018 calendars all though out my office and my house. And I did this before Christmas. That's how done I was with 2018!
Even worse (or better), I - yet again - survived 2 very long lonely days: Christmas Eve and Christmas Day. Having no family makes this particular time of the year excruciatingly painful from an emotional perspective. So...glad that's over! (And I thank the TV gods for the Lifetime Movie Network for surviving another holiday! Thanks to the cheese log and wine too!)
But then January hit and I hit the ground running, already busier than ever! And now with a few new projects that I didn't anticipate working on until months from now.
One is a brand new property that Andrew Shaw and I will be doing in the LA area. Yes, another one. This will be the 3rd one. And this one is a big property. I'm kind of intimidated by it. So, I'm not sure how I'm going to be able to squeeze this into my already tight schedule.
Then I'm finishing up the first draft of my book which, if all is finished on time (including cover, editing, etc.), will have an official release date of October 21st. Isn't that exciting? I'll keep you in the loop.
At any rate, one thing that I am getting a lot of emails lately about is the 100% LTV Bond Funding Program. Since this is one of the ways I'm now acquiring property, I wanted to explain a little more about the program.
The basic criteria of the bond program which included, at the time, a minimum property price of $5,000,000 but has since been lowered to $1,000,000. So, the total purchase price of the property to get the 100% LTV Bond Funding must be, at minimum, $1,000,000.
The reason I'm telling you this is because I'm sick of getting emails from students who either attended a prior seminar event or watched the videos who apparently don't believe me when I keep telling you guys and gals over and over again via email that the minimum property price has dropped from $5,000,000 to $1,000,000. I don't know how to be more clear and this is the last time I'll be mentioning this change to you. Again.
Next, you'll have to have a property that can support a 100% LTV mortgage at about an `0% fixed interest rate (30-year amortized). In areas of the country that have low CAP rates like Seattle or Los Angeles or New York...you're not going to be able to make a 100% LTV property cash flow unless you're knocking 50% off the asking price. And no seller will accept that offer from you. Instead, you'll have to focus in on areas of the country that can support 100% LTV deals after, of course, you shave off 10% to 15% off the asking price of any property you're looking at (which you should always do when buying a property anyway).
Where are these areas of the country?
Smaller "big" cities like Cleveland, Detroit, Indianapolis, Jacksonville, Atlanta, and Memphis to name a few make excellent areas to work with. Any area that doesn't have low CAP rates (as an average) that consistently fall below 8% across the board.
Remember, your 100% LTV has to be supported by the cash flow of the property. Deciding to invest in low CAP rate cities will guarantee that you'll end up with a negative cash flow property and your bond funders won't fund a negative cash flow deal.
Next, I have students asking me why the funders want to see that you have 1% to 2% of the purchase price of the property when it's a 100% LTV bond funded loan. The funders need to see that you are somewhat financially sound to the point where, when walking into the property after closing, you can pay for any upgrades, repairs, or get any units (needing new paint and carpet) rent-ready for new tenants. There's nothing worse than funding a property to find out that the lender has funded someone who doesn't have 2 nickels to rub together and can't do basic things for a property if needed.
Also, my students want to know about credit criteria. These funders will allow for people to have some credit issues/problems. I do recommend that if you don't have good personal credit and you don't have built business credit, start getting it together, bub. This upcoming year isn't one to be messing around and dragging ass otherwise you'll lose out on every last opportunity out there!
I should mention that to help my students hit the ground running, I have a few mentorship groups I'll be doing in 2019, starting with the Investor Direct Mentorship (starting January 23rd). This group will give you ALL options and access to investors, private money and all resources you need for not just real estate deals but also business ventures and start-ups as well. This is a 9-week group that's 100% online. All of my groups are 100% online and have a live webinar training once a week.
To register for this group (which I'm LIMITING to only a handful of students for the purposes of working DIRECTLY with my investors), CLICK HERE!
If you have any questions, you can call my office on Monday after 9am PST at (661) 295-5050.
See you at the top!
P.S. We're selling out of seats for the March LA Underground Secret Event. CLICK HERE to grab your spot now while you still can!