EMAC Presents

Formulas and Financing

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

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.

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

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.

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.

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.

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

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

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!

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

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

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

EMAC &

Joe Corno

Thank you

Think TankQ & A