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Real Estate Investing for Realtors
This document discusses real estate investing for realtors. It provides an overview of Thinkademy, a company that provides real estate investing education. It then shares the story of Saad Malik, who transitioned from being a realtor to a successful real estate investor. It describes some of Saad's early investment deals where he earned much higher profits than he did from his realtor commissions. The document advocates that realtors can earn more by working with investors on repeat business deals and recommends ways to attract investors as clients.
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Real Estate Investing for Realtors
- 1. Real Estate Investing for Realtors Saad Malik, Co-Founder & President Farhan Malik, Co-Founder & CEO Thinkademy
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- 3. What is Thinkademy? We’re a technology-driven education company that’s helping people build wealth through real estate investing. Simply put, we’re building an educational platform for investors.
- 4. Financial Vulnerability ofAmericans Almost 40% of individuals in the United States either could not or probably could not come up with even $2000 if an unexpected need arose.
- 5. Financial Vulnerability ofAmericans Almost 60% of individuals in the United States did not have three months of emergency funds that they could access to cover an emergency.
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- 8. Amit Doshi GreaterNJ Title Agency 4 Bridge St. Metuchen, NJ 08840 [email protected] 732-744-0200 (Office) 732-593-9135
- 9. Jack Yao RealmartRealty 1110 Hamilton Blvd Suite 2A South Plainfield, NJ http://www.realmartrealty.com
- 10. Started in 2006 Net profit of over $3.5 million Involved in 150+ deals
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- 12. Additional income Workfrom home More vacations Hate your job Enjoy what you do Savings for children
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- 14. My “why” isto be able to spend more time with my family
- 15. THIS IS FOR2 TYPES OF REALTORS Realtors looking to supplement their income investing in profitable real estate deals Realtors looking to earn more commissions by understanding and working with investors
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- 18. Why would anyone do this?
- 19. WHAT IS REALESTATE INVESTING (REI)?
- 20. FOCUS ON TWOTHINGS 1 2 Vehicle Strategy
- 21. CHOOSING A NICHE Investment Vehicles Single-family homes Duplex/Triplex/Quads Apartments Commercial Tax Liens Notes Raw Land Strategies Flip Rehab Buy & Hold Wholesale
- 22. MY START ASA REALTOR Got my license at 18, but didn’t start until after college Started straight out of college and didn’t know a thing Quickly realized that maybe this wasn’t my calling
- 23. SWITCHING GEARS Iwas lacking the passion to work with buyers or sellers I felt I was working too hard with too many clients but not making enough money Heard a lot about folks investing in real estate
- 24. Buy land becauseGod ain't making any more of it. Will Rogers
- 25. Bought land inFL and lost $25k
- 27. MY TRANSITION FROM REALTOR TO INVESTOR Bought 3 condos and flipped them for $100k net profit First one was $30k (equivalent to 6 closings in my market) I was hooked and I was in control
- 28. WILLING TO TAKETHE RISK TO MAKE THE MONEY I was young and had nothing to lose. Didn’t give my realtor career a fair chance. You’re in a better position right now than I was then. (Being a realtor and having the opportunity to learn about investing.)
- 29. THE MATH &THE MONEY First house I flipped, resulted in a net profit of $30k and only required 10 hours of my time. I made $3,000.00 per hour! As a Realtor, each deal I would make about $5k in commissions (My split was 70% of a 2.5% Commission from a $300k home sale). It took me about 32 hours to close a deal with a buyer after showing 10+ properties.
- 30. THE MATH &THE MONEY I would have to show 60+ houses to close 6 houses in order to make the same money. Which meant I was working 192 Hours to make $30k = $156.25 per hour Decided to make $3,000.00 per hour instead of $156.25 per hour
- 31. Started Executive RealtySolutions
- 32. DEAL 1: PURCHASEAND REHAB Somerset, NJ 08873 Closing Date: April 2007 Purchase: $240,000. Rehab Cost: $30,000 Re-Sale: $340,000 PROFIT: $70,000. (40 Hours) Buyer’s Realtor Commission: $8,500.00 (32 Hours)
- 33. DEAL 2: BUY& SELL AS-IS Edison, NJ 08817 Closing Date: April 2007 Purchase: $200,000. Cost of Rehab: $0 Re-Sale: $253,000 PROFIT: $53,000 (15 Hours) Buyer’s Realtor Commission: $6,325.00 (32 Hours)
- 34. DEAL 3: SHORTSALE New Brunswick, NJ 08901 Closing Date: September 2008 Short Sale Purchase: $175,000 Re-Sale: $330,000 PROFIT: $155,000 (20 Hours) Buyer’s Realtor Commission: $8,250.00 (32 Hours)
- 35. DEAL 4: SHORTSALE FOR MOM
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- 40. RICH VS. WEALTH MONEY VS. TIME As an investor I would become rich As an investor I would obtain money As a business owner I would create wealth As a business owner I would get my time & freedom TIME is EVERYTHING
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- 42. THE ENTREPRENEUR’S LAW: SELF-FULFILLING PROPHECY You must seek Knowledge. Knowledge will then attract Tools. Tools will then create Systems. Systems will always control Marketing. Marketing will always drive Profits. Profits will then support a Business. Your Business will then set you Free
- 43. THE BIG PICTURE INVESTING EVOLUTION Start out as a wholesaler to gain experience and make ends meet. Start rehabbing to make large sums of money Reinvest profits in Rental profits to to make residual income and gain ownership of your time and freedom.
- 44. EARN MORE COMMISSIONSBY WORKING WITH INVESTORS
- 45. Working with investorsmeans repeat business
- 46. Homeowners buy ahome once every 7 years, an investor can buy 20 or more homes in a single year.
- 47. Double end moredeals and get the listing back when homes are renovated.
- 48. Spend less timehand holding.
- 49. Get more buyerand seller leads.
- 50. LAW OF THEVITAL FEW (80-20 RULE) 1. Cut out people from your business that are indecisive and waste your time 2. Investors can be 20% of your network that make up 80% of your business. 3. Double end more deals and get the listing back when homes are renovated 4. Spend less time hand holding. 5. Get more buyer and seller leads.
- 51. WAY TO ANINVESTORS HEART IS THROUGH HIS WALLET 1. MACO = 70% ARV - REPAIRS 2. No Anomalies 3. 30% Cash on Cash for Rehabs 4. 17% Cap Rate for Rentals 5. Areas of Expertise
- 52. LUXURY SHORT SALEDEAL Somerset, NJ 08873 $50,000.00 Commission Earned
- 53. Thanks for joining! Thinkademy Blog blog.thinkademy.net Real Estate Investing Immersive Course thinkademy.net/rei-immersive/ Email [email protected]