Real Estate Investment Opportunities – The Golden Opportunity
 
It is the RIGHT time!
The Best Rate Cap from 25% to 55%!
 
 
Method of Investing
 
     Real Estate is the biggest industry in USA. When we talk about real estate investment, there are hundreds of waysto do! 
       In this proposal, we are just talking about buying REO properties, remodeling them, then resale them within the time frame of from 3-5 monthsè>> the fastest & most profit way for current real estate market!
 
 
Locations
 
      REO properties are from everywhere. However, the most promiseable markets would be in La Puente, Baldwin Park, and Pomona for the next couple of years. 
 
      El Monte was just the past! (Remember: El Monte is still very good for Income Properties: buy then rent them for cash flow!)
 
 
Capitals
 
       How much do you need to start?
It depends on how much you have! To maximize the profit, you are better offer all cash. 
            Reasons:
* You probably save $10,000-$25,000 for each property you buy. Example: your offer of $200,000 all cash should probably defeat the offer of $215,000 with 20% down è you already make $15,000.
* It takes you a lot less time to buy and sell è cash flow would be faster & more efficiency!
 
       Suggested Capitals Needed: (One property at a time)
 
* La Puente & Baldwin Park (included money needed for remodeling): $240K for all cash offer OR just $80K for 20%-down offer.
 
* Pomona (included money needed for remodeling): $160K for all-cash offer OR just $60K for 20%-down offer.
 
 
How to calculate the Rate Cap?
 
       Rate Cap is the short word of Capitalization Rate or Return Rate
 
       Rate Cap is calculated by divide the NET annually income by the total investment. For the income property, the Rate Cap is about 6%-10%.
 
Example 1: the 4-unit building cost you $500K and the net annually income of $40K (after deducted all expensive), you will have a rate cap of 8% ($40K: $500K = 8%)
 
Example 2: buy a REO property for $200K, remodeling cost: $30K, sale for $285K, broker fee and other fees are $25K , it takes 6 months from buying to selling è your net income would be: $30K. Remember: this is just for 6-month turnaround; so, your net annually income should be $60K. Then, your Rate Cap is: 30% ($60K : $200K = 30%). That’s huge Rate of Return! And this is what we will do!
 
 
How it works!
 
       First step: locate the property
        It should be REO.
        It should be at least 1 month on the market.
        No unpermitted add-on, modification.
        Good floor plan 3beds/2 baths & with at least 6000 sqft lot.
       Second Step: prepare the Estimated Allocation Sheet
        Determine the Offer Price.
        Get the remodeling-cost quotation.
        Determine the Sale Price.
        All other fees.
== >> come up with Projected Profit
       Third Step: Start negotiating!
 
1.      What do you do? 
            You should do nothing. I, as your agent, will do all the steps.
2. Do I cost you? 
            No, you keep all profit. 
3. How do I make for living?
I get commission when buying (seller pays) and when selling (you pay). It’s about 1.25-1.5% of selling price.
 
Facts – Current Market
 
Fact #1: Both houses have the almost same information:   
            - 3 beds & 2 baths
            - 1300 sqft with 8000 sqft lot.
            - built in 1950-1960
 
* The house on top is currently listing for only $130,000 and on the market for 2 months.
            (1794 Wright St , Pomona )
 
* The house at the bottom was just sold recently (10 days) for     $236,000
            (2447 Mountain AV , Pomona )
 
       Calculation:
 
$236K - $130K - $30K for remodeling - $20K for all fees - $6K for unexpected fees = $50K profit
 
            $50K : ($130K+ $30K) = 31% Cap Rate for estimated 4-6 months turnaround
 
If we could do 2 transactions yearly, the Cap Rate would be 62% : you will not believe it!
 
            No other investment would have a rate of return more than this method!
 
 
 
 
            Fact #2:  Both houses have the almost same information:
            - 3 beds & 2 baths
            - 1500 sqft with 6000 sqft lot.
            - built in 1950-1960
 
         The house on top is currently listing for only $259,000 and on the market for 2 months.
            It would be sold for $225K with all cash offer.
            (329 Big Dalton AV , La Puente)
 
         The house at the bottom was just sold recently (10 days) for $315,000
(642 Rama DR , La Puente )
 
       Calculation:
 
$315K - $225K - $30K for remodeling - $20K for all fees - $6K for unexpected fees = $35K profit
 
$35K : ($225K+ $30K) = 14% Cap Rate for estimated 4-6 months turnaround
(in this sample, I don’t see that we need $30K for remodeling, the house is not that bad. So the Cap Rate should be more)
 
If we could do 2 transactions yearly, the Cap Rate would be 28% : you will not believe it!
 
            No other investment would have a rate of return more than this method!
 
 
 
Your Real Estate Investment Representative
 
       Don’t wait to let the opportunities passing by!
       Do your math: do you have more profit in other investments?
       There are golden opportunities all around, but only those who have quick reactions would be success!
 
Call Me – Email Me – Fax Me
James Bui – Broker
Century 21 Excellence Dynasty
BatDongSan888.com
24/7 Phone: 626-274-9428
Fax: 626-607-0381