Date post: | 20-Feb-2017 |
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Real Estate |
Upload: | colin-murphy |
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Day to day reality less glamorous than the TV shows
Valuable step by step guide for anybody interested in this business
Insights into what my colleagues and I do every day
Includes sourcing, analysing, property visits, making offers & renovaDng
Drilling down into nuts and bolts of owning and renDng property
Aim of this presenta/on
However building a rental porFolio can change your life
Important you focus on very specific property types, prices and locaDons
From Feb 1-‐5, I studied 50 potenDal properDes carefully
Involved puMng 70 rows of data on each one into our in house spreadsheet
Sourced from MLS, Zillow, Craigslist, Private aucDon sites and YellowleTers
Included basics such as beds, baths, sq V, year built and market rent
Easy to get overwhelmed by volume of homes for sale
But also permits, liens, tax records, rehab esDmates holding costs & running costs
Step 1: Finding and analysing poten/al houses
All 19 were visited and inspected for 40-‐45 minutes each
Google maps very useful for planning and comparing previous purchases
Feedback on local area (both good and bad)
DraV renovaDon budgets quickly calculated and uploaded
Once numbers were updated, 9 potenDal investments idenDfied
IniDal list of 50 properDes whiTled down to 19
Step 2: Visi/ng the proper/es
Prefer to send signed agreement with a proof of funds
Shows we are serious and ready to move quickly
Banks oVen have their own (badly designed) submission systems
Offers generally sent same day we view the properDes
AucDon website systems are also all very different from each other
I´m not a big fan of verbal offers
Step 3: Making an offer
This is higher than the average (which is 1 in 10 for us)
Once agreements returned, we immediately ordered inspecDons
An inspecDon can idenDfy important (and expensive) issues to correct
Look at dwelling, hvac, electrics, plumbing and roof
Range from 1,000s to 10,000s of dollars
Of the nine offers made, two were accepted
Step 4: GeAng your offer accepted
Aluminium wiring which will require expensive fuses to bring up to code
Damaged pipes which may or may not be expensive to fix
Either way, both houses are visited again and renovaDon scope of works finalised
Need to return with general contractor and electrician to get esDmate
Do as much homework as possible during inspecDon period
Red flags were found on one of the properDes inspected last week
Step 4: GeAng your offer accepted (con/nued)
Unpaid uDlity or tax bills can cause delays
Liens from banks, credit card companies, HOAs, local county can appear
Biggest mistakes made by those buying at aucDon with no recourse
Never take your eye off the ball during this period
Now purchasing the property with clean Dtle becomes key
Step 5: Purchasing the house
We do whatever is necessary to make property high than average standard
Quality of kitchen, floors, roof and paint all high quality
Upshot of this policy is that lots of inquiries received
Note: Not necessarily be0er than your house, just average for this area
Not going to go into too much detail about renovaDons here
Step 6: GeAng the property rent ready and tenanted
.. is to provide great turnkey rental properDes to our clients
We make sure you have great property manager and are properly insured
We make ourselves available before, during and aVer you buy
Whole point of this enDre process .. sourcing, analysing, buying, renovaDng etc.
Step 7: Selling turnkey to our clients
If you buy a $100,000 property from us, we want you to earn $8,000 -‐ $9,000 pa
We do all the work (and it is a lot) so you don´t have to
Our buyers are busy people with diverse careers, but they all recognize the important of puMng their money to work FOR THEM
Rental properDes are the best way I know of growing wealth without subjecDng yourself to stock market volaDlity and low bank deposit returns
Please email me at [email protected] and if you´d like to learn more.
Next Steps
Telephone: +1 321 806 1195 / +44 207 193 4024 / +353 1 4434 466 / torcana-‐colin (skype)
Almost all are sold to people who reach out to us directly in advance of public launches
Further InformaDon: info.torcana.com (blog) & www.torcana.com (main website)
This document contains general informaDon relaDng to the purchase of property and its contents should not be construed as legal or other professional advice. This is not an investment offering. While all reasonable care has been taken in the compilaDon and publicaDon of this informaDon, Torcana & it´s subsidiaries make no representaDons or warranDes, whether expressed or implied, as to its accuracy or completeness and the content is provided for informaDon purposes only. Torcana does not oblige any buyer to use exisDng property management services and recognizes their right to rent his or her property independently. Furthermore, Torcana and its subsidiaries shall not be liable, directly or indirectly, to the user or any other third party for any damage resulDng from the use of the informaDon contained or implied in this document. Buyers should always seek appropriate legal, tax & financial advice from suitably qualified professionals before taking, or refraining from taking, any acDon.
Currently have three properDes under renovaDon and another four under contract