• The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success
  1. Join 50,000+ entrepreneurs
    who are kicking butt and
    winning their dream life.

    Unscripted™ Entrepreneurship:
    A Business That Pays More Than Money, It Pays Time.

    "Fastlane" is an entrepreneur discussion forum based on The Unscripted Entrepreneurial Framework (TUNEF) outlined in the two best-selling books by MJ DeMarco (The Millionaire Fastlane and UNSCRIPTED™). From multimillionaires to digital nomads, the forum features real entrepreneurs creating real businesses.

    Download (Unscripted) Download (Millionaire Fastlane)  Register
    Registering for the forum removes this block!

Real Estate Real Estate Formulas

Discussion in 'Real Estate Investing' started by AroundTheWorld, Mar 5, 2008.

  1. AroundTheWorld
    Offline

    AroundTheWorld Be in the Moment Speedway Pass

    Messages:
    2,909
    Likes Received:
    1,844
    Joined:
    Jul 24, 2007
    Gender:
    Female
    Location:
    .
    Rep Bank:
    $4,770
    Solve Your Real Estate Problems Here

    This link is mentioned in a different thread, but MJ suggested a thread dedicated to the topic.

    Here is a link to Real Estate Forumula's.

    In short, a formula is a way to solve a real estate problem or accomplish a real estate goal. There is a WEALTH of info and ideas here. So...

    • Anyone see a formula you want to hear about on a more in depth level?
    • Anyone use a formula with success and want to discuss it here?
    • Anyone have a real estate problem - and want some ideas on which forumula could work for you?
     
    Last edited by a moderator: May 7, 2008
    M&T, kurtyordy, rzach41 and 1 other person like this.
  2. rzach41
    Offline

    rzach41 Contributor

    Messages:
    200
    Likes Received:
    39
    Joined:
    Oct 23, 2007
    Rep Bank:
    $85
    very informative website. great find! rep++

    ryan
     
  3. AroundTheWorld
    Offline

    AroundTheWorld Be in the Moment Speedway Pass

    Messages:
    2,909
    Likes Received:
    1,844
    Joined:
    Jul 24, 2007
    Gender:
    Female
    Location:
    .
    Rep Bank:
    $4,770
    This is a formula I am looking at: (I may have described this elsewhere - if so, sorry for the duplicate)

    Let's say I am a beginning Real Estate Investor and I have collected some SFR's. I'm interested in now moving up to multi family. Exchangor's start with 3 key numbers: Value, Loans, and Equity. Here it is for the handful of SFR's:

    TOTAL VALUE: 1,500,000
    LOANS: 900,000
    EQUITY: 600,000

    Now. I want to get rid of these SFR's and into a multi family or other commercial. What can I do? I can find an exchangor with a commercial property worth 2,000,000.

    I can pay off my houses and deliver them to the exchangor as a down payment. Now, I've delivered 1,500,000. I still need to pay the exchangor the difference of: 500,000 - and I need to pay off my houses (so that I can deliver them free and clear)

    My total loan requirement to pull off this exchange is: $1,400,000 (900,000 house payoff plus 500,000 additional loan) This is approx an 70% LTV.

    Why would the owner of the multi or commercial go for this deal?

    A number of reason's. Perhaps they have moved and that property is no longer geographically comfortable. Perhaps there is a split in the partnership - and these separate houses will help the partnership dissolve. Perhaps they are ready to retire, and could use a vacation home or two.

    Also - by delivering these houses free and clear, we are delivering what is called a 'crank-able' asset. The new owner can 'crank' money out of the property. They can either keep it free and clear and rent it out for cashflow - or they can finance each of them. Rents can cover the debt - and they have the additional cash.
     
    SteveO likes this.
  4. AroundTheWorld
    Offline

    AroundTheWorld Be in the Moment Speedway Pass

    Messages:
    2,909
    Likes Received:
    1,844
    Joined:
    Jul 24, 2007
    Gender:
    Female
    Location:
    .
    Rep Bank:
    $4,770
    This is another of my favorite forumulas....

    Problem:
    HAVE EQUITY - - - NEED CASH

    Do you have a property with equity - - - are unable or unwilling to move that property right now - - - but you need cash?

    Create a Note using the equity in your property as collateral. Make payments on your note for a bit to season it. Then, sell the note for a discount.

    Walla. Cash in Hand.
     
  5. AroundTheWorld
    Offline

    AroundTheWorld Be in the Moment Speedway Pass

    Messages:
    2,909
    Likes Received:
    1,844
    Joined:
    Jul 24, 2007
    Gender:
    Female
    Location:
    .
    Rep Bank:
    $4,770
    Help Someone Generate Cash - -
    Get Rid of Your Property - - -
    And Get Some Cashflow Too!​



    Right now, there are investors out there looking for BIG CASH so they can buy REO's in bulk for pennies on the dollar. They have assets that are not crankable. (like notes backed by real estate)

    You have a house with equity.

    What can you do?

    You exchange your house for the note.

    Now, they have a house. They can go to the bank and get financing. Walla. The cash they want.

    You now have the note (backed by real estate) and income without the landlord headaches.
     
    JScott likes this.
  6. M&T
    Offline

    M&T New Contributor

    Messages:
    169
    Likes Received:
    19
    Joined:
    Oct 2, 2007
    Location:
    Hershey, Pa.
    Rep Bank:
    $53
    great info. I gave rep speed for that one!!!
     
  7. JScott
    Offline

    JScott Legendary Contributor FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

    Messages:
    3,856
    Likes Received:
    6,420
    Joined:
    Aug 24, 2007
    Rep Bank:
    $46,427
    Some great ideas...Rep++
     
  8. AroundTheWorld
    Offline

    AroundTheWorld Be in the Moment Speedway Pass

    Messages:
    2,909
    Likes Received:
    1,844
    Joined:
    Jul 24, 2007
    Gender:
    Female
    Location:
    .
    Rep Bank:
    $4,770
    As the real estate market continues to go through these strange time - - the use of creative real estate practices, exchanging, and formulas becomes more attractive.

    Anyone putting some of these formulas to work these days?
    Anyone see a formula here that could work for you?
     
  9. EasyMoney_in_NC
    Offline

    EasyMoney_in_NC Contributor

    Messages:
    399
    Likes Received:
    31
    Joined:
    Sep 9, 2007
    Location:
    Wilmington NC
    Rep Bank:
    $61
    Some far out formulas for those of us in "the box". I have a handful of f/c lots that I can't sell and would love to, or pull money from......have to do more studying on some of those tactics.
     
  10. PEERless
    Offline

    PEERless Bronze Contributor

    Messages:
    1,469
    Likes Received:
    105
    Joined:
    Jan 23, 2008
    Rep Bank:
    $92
    "Walla" = voilà? I love it.
     
  11. Runum
    Offline

    Runum Platinum Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass Summit Attendee

    Messages:
    5,968
    Likes Received:
    4,268
    Joined:
    Aug 8, 2007
    Location:
    DFW
    Rep Bank:
    $12,814
    I dont' recall seeing this thread earlier. It is going to take some time to digest those formulas. Thank you for bumping it.

    I got a call to day from someone wanting to sell their house to move away. I don't think they have a lot of equity in it and may even be top heavy. I have been trying to figure out a way to help them and me too. Maybe I can get something from those formulas. I kinda thought about RCardins subject to move. I don't know yet.

    Thanks again +++speed

    Well, sorry ATW, can't speed you now, gotta spread it around.
     
  12. PEERless
    Offline

    PEERless Bronze Contributor

    Messages:
    1,469
    Likes Received:
    105
    Joined:
    Jan 23, 2008
    Rep Bank:
    $92
    ^I am also "digesting." Some of these exchanges are amazingly complex!!!
     
  13. AroundTheWorld
    Offline

    AroundTheWorld Be in the Moment Speedway Pass

    Messages:
    2,909
    Likes Received:
    1,844
    Joined:
    Jul 24, 2007
    Gender:
    Female
    Location:
    .
    Rep Bank:
    $4,770
    Ya, that is how I was at first too. It really helped me to talk through it with someone else. If there are any here you want to "talk through" - - post them here, and we can all work through them.
     
    EasyMoney_in_NC likes this.
  14. EasyMoney_in_NC
    Offline

    EasyMoney_in_NC Contributor

    Messages:
    399
    Likes Received:
    31
    Joined:
    Sep 9, 2007
    Location:
    Wilmington NC
    Rep Bank:
    $61
    I'm not seeing the big picture on the formula that puts a note on my f/c properties. I pay myself for my property to establish it? Then I sell that note and have to pay someone else? So would I need to inflate my note value knowing that someone will want to buy it at a discount? Do I keep the terms cheap so that my end result is a purchase of (something) and have a cheap payment?

    I've never been a big fan (although I watched the infomercial a million times) of the Carleton Sheets type deal makings. I know the theories probably work, but I'm not good at conjuring up those type of deals/formulas/terms.
     

Join 1000s of entrepreneurs who are rewriting life's script and winning financial freedom.

---- ----

You must be a member to join the conversation.

Create Account

Join the community fast and easy!

REGISTER

Log In

Already have an account? Login here.

LOG IN

Share This Page