250 k in 2016

Post on 22-Jan-2017

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Transcript of 250 k in 2016

$250K in 2016Scott Carson’s

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Making $250K in 2016• Let’s Break It Down to the Basics!• Assume You Need $5,000 per month• Single Assets with FMV = $50,000• Purchase at 50% FMV = $25,000 • Assets that are Owner Occupied• Rent Rates Higher Then Existing Payment• Existing Payment in the $500 Range• Collect 4 Months of Back Payments To Do Loan Modifications• Use OPM to Purchase Note

$250K in 2016• $25K Borrowed at 12% is $3,000 per year/$250 per

month• To Get $10K Cashflow ($5K for You/$5K JV) = 20 Deals• $5,000/$250 = 20 Deals• $5,000 x 12 = $60,000 In Cash Flow• 4 Payments of $500 = $2,000 Skin From Borrower

(HIP Bank)• $2,000 x 20 Deals = $40,000 Income• $60,000 + $40,000 = $100,000 Income

$250K in 2016• $50,000 Assets x 20 = $1,000,000 in FMV• $25,000 PP x 20 = $500,000 Funded• $5K Per Month X 12 = $60,000 Cash Flow To JV = 12%

ROI

•So How Do I Return My Investors Principle?

$250K in 2016• 12 Months of Performance = Re-Performing Notes!• Sell Your Re-Performing Note at 80% of FMV• $1,000,000 FMV x 80% = $800,000 Note Sale

Proceeds• IF You JV’d at 50/50 Split, Investor Get’s $500K

Investment Back First.• You Would Split $300,000 Profits 50/50 = $150,000

Each!• $150,000 Note Sale Proceeds + $60,000 Cash Flow +

$40,000 Skin =$250,000 Income

$250K in 2016• What Does The JV Partner Get?• $60,000 in Cash Flow (50/50 of Loan Mods)• 50% of Note Sale Profits ($300,000/2 = $150,000)• $60,000 + $150,000 = $210,000 Income• $210,000 Profits on $500,000 Investment =

42% ROI

$250K in 2016• IF You Borrowed at 12% Return, Re-Performing Note

Sale at 80% = $800,000• $500,000 Principle Returned First• Borrower Has Received $60K In Cash Flow = 12% ROI• You Keep $300,000 Profit From Loan Sales!• $300,000 + $60,000 Cash Flow + $40,000 Skin =

$400,000 Income• Investor is Happy at 12%• Rinse and Repeat!

$250K in 2016• Let’s Recap• $500 Month Payments x 12 Months x 20 Deals =

$120,000 CF• Split CF 50/50 = $60,000 CF For You And JV Partner• Collect AT LEAST $2K of Payments From Borrower

(Skin) x 20• Split Loan Sale Proceeds 50/50 if JV or Just Pay 12%

ROI.

Should We Run Through A Pool

Investors Implementing Game Plan

What’s Made Them Successful?• Coachable• Get The Word Out/Not Afraid To Talk To Investors• OPM – Other People’s Money• Network• Not Afraid To Get Hands Dirty• They Have Their Plans and They Work It!

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