The Real Estate Rehab Investing Bible

A Proven-Profit System for Finding, Funding, Fixing, and Flipping Houses...Without Lifting a Paintbrush

Paul Esajian

• Publisher: Wiley
• Year: 2014
• Print ISBN:
  9781118835388
• Edition: 1
• eBook ISBN:
  9781118891674
• Topic: Business
• Subtopic: Real Estate
• Index: Business

THE HOUSE-FLIPPING HOW-TO THAT TURNS EVERYDAY PEOPLE INTO ENTREPRENEURS

Everyone likes the idea of turning the ugliest house on the block to the best house on the block and making a profit. Until now a system has not been shared on how to successfully complete this task on time and budget without getting your hands dirty. This book not only cracks the code but shares the proven path and system to have a systems based rehab business that makes consistent profits for ordinary everyday people.

The Real Estate Rehab Investing Bible reveals the lucrative seven-stage system that allows author Paul Esajian, and his students all across North America, to manage multiple rehab projects at once, while staying on time and under budget to build and grow their wealth. No experience? No problem. You'll learn strategies to find the right properties, negotiate the right offer, identify the right licensed and insured contractor for the job, and get the property sold to a happy homeowner for a profit.

No capital? No problem. You'll learn how you can use other people's money to fund your deals and the IRS guidelines that help you keep more of the money you make. By learning and leveraging the principals of rehabbing and real estate, you'll start thinking like a business owner rather than a consumer.

Breaking into residential real estate provides an amazing opportunity for those with little, or no experience, and using other people's money. This book gives you the information, education, and systems every investor needs to start flipping and rehabbing houses without doing the work yourself, and withoutlosing your shirt to contractors and bad investing decisions.

Find Deals:where and how to find deals, analyzing deals, and estimating repairs in minutes to acquire a rehab

Fund Deals:where and how to borrow money, creative financing, and the finance request template to present to asset based lenders and private lenders to fund your deal

Fix Deals:how to run a rehab with a proven system without lifting a hammer, identify A+ licensed and insured contractors at wholesale pricing, and what to focus on to maximize your profit

Flip Deals:how to properly price, stage, and add the sizzle features to get properties sold within weeks of listing the property by properly analyzing comparables and staging the rehab properly

The proven techniques Paul shares work in any location, in any market. If you're ready to get in the game, The Real Estate Rehab Investing Bible teaches you how to play.

Part I
Getting the Rehab

Before we can implement our Seven Stage Rehab System, we need to market and find properties that need renovation. Once we find a rehab property, we have to do a proper deal evaluation to determine whether it's a good deal. After we determine it's a good deal, then we have to finance or pay for the rehab property. Throughout all these steps we will need to have the knowledge and confidence to estimate repairs and write a proper purchase and sale contract to control and close on the deal. Part I and the following nine chapters prepare us for all these steps, provide a system to implement, and most importantly will give you the confidence you need to move forward with writing an offer on your first or next rehab deal.

Chapter 1
How to Make a Profit On Your First Deal

You may think that you need to have a lot of money to break into the real estate industry—but that couldn't be further from the truth. Neither prior knowledge nor a bank account full of cash is a requirement. Yes, you can take advantage of more opportunities if you have both experience and money. However, we all have to start somewhere. In the words of one of my coaches, “Every master was once a disaster.” No one knows what they're doing right at the beginning. But we all start somewhere.

Master Rehabbing Now

One student of mine, a professional football coach named Scott Squires, was overworked and traveling nonstop. Although he enjoyed his job, it did not provide him with the personal or financial freedom that he desired. He wanted to spend more time with his three kids. Scott took the first step to having that kind of life by participating in our real estate coaching program. He had absolutely no real estate experience, but he started following the principles laid out in this book. His first deal in Southern California was a HUD home that he purchased for $350,000. He ended up spending $13,000+ in rehab costs and sold the property for $415,000. He bought, rehabbed, and sold the property within 84 days and made a profit of $49,000—which allowed him to spend more time with his family and leave his day job. If you want to hear Scott walk you through his first deal, you can listen to his story here: www.fortunebuilders.com/video-case-studies/scott-squires.

A mere two years later, Scott sent me a text message telling me about his latest deal at the time: using my rehab system, Scott made a profit of $216,000 on one deal! By following the same rehab system I share in this book, Scott no longer travels for work—and he is able to spend as much time with his family as he wants.

You're likely wondering at this point if my system can truly apply to your situation—perhaps even convincing yourself that this just won't work. You may be thinking that Scott is an isolated scenario—real estate success can occur anywhere and to anyone. Imagine instead the success you will enjoy once you commit to your own goals. If you apply the principals, knowledge, and enroll coaches and mentors to successfully move forward, you will experience the results you desire.

How does a full-time radio DJ and a high school science teacher with no real estate experience make money on their first rehab in Richmond, Virginia? Jeff and Joanna Anderson got their first deal from a marketing campaign I will share in this book. They financed the purchase price of $80,000 with a hard-moneylender (which you'll learn about in Chapter 7, “Financing Rehabs”). After spending $61,000 on the rehab, they sold the property above their asking price for $215,000. That is a $45,400 profit—on their very first project. Check out Jeff & Joanna Andersons first rehab profit here http://www.fortunebuilders.com/deals/jeff-anderson/.

If you enjoy learning, self-improvement, and making large amounts of money, then you have come to the right place. Again—I am not offering a get-rich-quick scheme. It takes hard work, commitment, and a positive attitude. More importantly, it requires you to take action now. So let's get you started on making your first real estate rehab profit!

Our Biggest Obstacle

To make progress, you must take advantage of the knowledge I share throughout the next 22 chapters. It is entirely up to you to start achieving your personal and financial goals.

The biggest obstacle you will likely face is fear. People are afraid to fail, to be unprepared, that it'll be too difficult, that they won't have enough money. Some people even fear success. These are all legitimate concerns; but the way you handle this fear will dictate your future as a residential redeveloper.

Work finally begins when the fear of doing nothing exceeds the fear of doing it badly.

Alain de Bottom

Most people see fear as a stop sign—but really, it's a pay attention sign. That twinge of worry in the pit of your stomach is a signal to pay attention to what you don't know, what you need to know, and what you are already familiar with. Think about an opportunity that you knew you wanted to take, but didn't. What held you back? How will that be different this time around?

Once you change your perception of fear, you will notice countless opportunities. More importantly, you'll spend your time and energy more productively. Instead of avoiding fear, you should welcome fear with open arms. When you identify fear, then you have just identified what you need to learn and gather more information to move forward with confidence.

You don't have to know all the answers; you just need to have access and be willing to approach those who do. Henry Ford was not the best mechanic, nor did he know every detail about building a car. However, he had no equal when it came to recruiting the smartest and most talented individuals. The people you surround yourself with are integral to your success as an investor.

My Story

Whenever I sit down for a lecture, read a book, or take advice from someone, I always ask myself: Why should I be listening to this individual and what credentials do they have that make them an expert? Since you're likely wondering the same about me, let me share some statistics regarding my experience in the real estate industry.

Over the last decade, I have managed over 1,000 residential real estate transactions. I have spent over $35 million—from renovation materials to contractor fees for single-family homes—in states from Connecticut to California and everywhere in between. I currently manage and operate an eight-figure investment portfolio for my partners and me through real estate.

I know what it takes to begin at ground zero. I started with no money and zero real estate or construction knowledge, yet was able to create successful real estate transactions and a thriving real estate business.

When I graduated college, I had a degree in Agricultural Economics—earning what many may consider a degree in farming. Then I went through an entire year without a job. I initially took a job as a bar back and after a ton of hard work, finally became a bartender. The only things I ever flipped before houses were cocktails and dreams!

There were a few things that allowed me to bridge the chasm between bartending and rehabbing:

1. Step One: Embrace every learning experience that presents itself and read material relevant to your goal.
2. Step Two: Enlist the ...

Table of contents

• Cover
• Title Page
• Copyright
• Introduction: The Decision
• Part I: Getting the Rehab
• Part II: Managing the Rehab
• Part III: Selling the Rehab
• Part IV: Owning and Growing a Business of Rehabs
• Conclusion: The Secret to Sustainable Success: Living and Giving with Passionate Purpose
• Index
• End User License Agreement