Pic from Dan Wick’s current project
Meeting Date: Sat. November 2, 2013
Welcome to THE ‘AL’ REPORT. My name is AL. Here’s my report.
Topic: Using the FortuneBuilders Deal Analyzer to Maximize Profits
Presenter: Julie Clark
The seventh Seattle area FortuneBuilders Mastery Seattle Investing Club
meeting convened at the Shoreline Conference Center. Once again Coach
Joe Bauer and Mastery student Julie Clark organized it. Thank you
again!
I counted 19 present. The power was out in the neighborhood so instead
of ‘networking’ the first hour, we got right to it before the sun went
down. Electric lanterns were available which we needed as the room
darkened. It was great!
The main idea was to demonstrate not only how to use the Deal Analyzer
but to show that it can be changed, tailored by each user, to fit your
thinking and specific deals. Julie went through each line of her
analyzer pointing out what she enters, how she thinks through the
process of analyzing her deals, and showed some additional lines she
added to the spreadsheet.
(NOTE: The FortuneBuilders Deal Analyzer and the NEW Deal Analyzers are
found exclusively on the FortuneBuilders Mastery webpage, are
proprietary documents and are not to be given away to non
FortuneBuilders members, per Mastery training. We can show them to
others, just not give them away, or sell, to others. For non
FortuneBuilders members, contact Joe Bauer regarding access to the Deal
Analyzers.)
The cool thing about these is, if you’re somewhat skilled at Excel, (I
was not, but I learned a few things) you can add or change algorithms
imbedded in the analyzer. Julie has added some lines of her own both in
the green input area and the white analysis areas. For example, the
second line of the white “Purchase Analysis” section she added “Annual
Insurance Premium – Investor Policy”. She added notes to herself like
“use 12%” for the Second Mortgage line. The main idea for making these
changes is to make the Deal Analyzer work for you. There is a
protection password on it. See Joe or Molly.
On the Mastery site are posted some updated Deal Analyzers, for flips,
rentals, wholesaling and the NEW DEAL ANALYZER, with enhanced cells that
you can hide or unhide. Take a look on the first page of the Mastery
site or ask me or Julie or Joe where to find these, if you need help.
There is training for these versions as well where each line is
explained. Julie’s altered version is available upon request.
Other comments throughout the meeting: Dirt Cheap Signs, ask Joe or use
Facebook. Our Seattle Investing Club has it’s own exclusive Facebook
page, courtesy of Joe Bauer. Sewer scopes for about $185 to $220 saved
one member 10K on a short sale deal. Banks can use sewer scopes as a
negative tool. A strategy is to do one on the last day or so before
purchase…just in case you need to back out or get a lower price.
Staging: match the furniture to the house. Plan on 2 months. Be sure
to have the house cleaned before staging, all the construction dust is
still in the air. Run the furnace before cleaning.
There is a funding co-op for builders called Blueprint Capital.
Example: for 100K in, you get up to a 500K loan. They pay lenders 6%,
and charge borrowers 2 points and 10%.
There was discussion about wholesaling bare land, ideas about getting it
under contract, look at zoning, see a banker. There’s a water front
property for 180K with ARV of 700K, new construction. Can be
subdivided.
One member cautioned to watch out for builders who use a low bid, $65 /
sq ft, as a teaser, when the real rehab cost is higher.
Brian Fouts shared and answered questions about his company, Merrill
Investments Group, LLC, which specializes in highly creative ‘subject
to’ scenarios. Non owner occupied, 90% to 120% LTV, etc. are common.
He presented ways to monetize a lead we may find with multiple exit
strategies in NOD or other distressed situations. He related that 80%
of the population cannot get traditional loans so they seek owner
financing. This means there are more ‘buyers’ available in this
situation than those who are not. It is a vast opportunity. They have
the expertise, legal skills and track record to find solutions on both
sides. Brian is partners with Timothy and Esteban, Mastery students in
Seattle. Contact them for more info. (Brian Fouts approved this write
up!)
Please let Julie or Joe know what future topics you want to cover. This
is YOUR meeting, so to speak, and we all benefit from YOUR involvement.
Thank you for participating to keep our group growing and moving
forward. Our meetings are now MONTHLY, the first Saturday of the month,
4 to 6pm. Same time, same place. Watch for Joe’s emails….and view news
on the exclusive Seattle Investors Club facebook page. If you need an
invitation to join it, ask Joe via email.
Looking forward to seeing you!
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Disclaimer: Every effort is made to report accurately; any errors are
likely due to the writer’s lack of brain nutrition. Feel free to let me
know if you see any goofs. Thank you. AF [email protected]
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