The 5 Levels of Real Estate Investing
To completely appreciate this report you should be comfortable with my ACoPuLiPro equation.
A = Asset Attraction
Co = Asset Conversion = Negotiation and Deal Structuring
Pu = Asset Purchase = Finance
Li = Asset Liquidation = How you discard the resource
Expert = Asset Protection
Level 1 The Technician.
In this level you figure out how the business functions and how you can do the majority of the work yourself. The catchphrase here is “Yourself”.
In this stage you burn through large chunk of change picking up, going to classes, purchasing books, and DVDs. You will particularly purchase books and DVD that let you know how to accomplish the work. You might purchase recordings: “On the most proficient method to do power, carpentry, tiles, plumbing, and so forth” and recordings “On the best way to hang sheetrock…” This is the How To part of the business. The Doing of the Thing as Michael Gerber calls it.
A: Marketing
You rely upon the distributer to observe gives you can purchase.
You don’t do a great deal of promoting in light of the fact that you don’t have the opportunity and the information to set up a framework.
In the event that you are immediate advertising you Wyoming LLC might compose the envelope yourself.
You might get gets back to yourself and call individuals.
There is no screening cycle.
You don’t have a genuine advertising framework.
You will quite often accept all calls.
Your wireless rings constantly.
Co: Conversion
You comprehend the “3 Offers System”.
Offer 1: All cash
Offer 2: Some money now, some later
Offer 3: Owner financing
You comprehend the MAO equation.
MAO = After Repair Value (ARV) X 65% less Repair.
You know how to explore the worth of a property by calling realtors
You know how to appraise fixes inside 10 to 20% blunder edge.
You have no solid workers for hire. You don’t actually have the foggiest idea how to manage workers for hire.
So you have 2 issues:
1-You will quite often accomplish the work yourself by investing a lot of energy at Home Depot or Lowe’s. In any case, you are learning. You might have a truck so you can convey your own hardware and material.
2-You get modest project workers or you enlist them and they make a horrible showing. In any case, you set aside cash and that was the objective.
Pu: Finance
You intensely rely upon hard cash moneylenders, Mastercards, and accomplices.
You burn through large chunk of change on monetary charges yet you must choose between limited options since you never structure your business to have a decent money level. Your credit is OK however not actually extraordinary, your score is around 680 or under. You might even be around 700 financial assessment and you don’t have the information to utilize the credit productively.