Enjoy the peace of mind that comes when you know you have done everything you can to make sure this next investment is going to deliver the results you have designed into the project. Learn how to spot potential perils in investment properties and how to avoid them before closing. Real estate investor extraordinaire, Chris Albin, with more than 400 properties purchased in his career, takes you through the ins and outs of the due diligence process. Learn what to search for during inspections, how to get more property information from sellers and agents and how to address problems when they arise. Due Diligence is the key for investor success in every transaction. Master the skill of turning due diligence findings into negotiation strategies and dollars at the closing table, all the while protecting hard-earned investment dollars that are held in escrow. Learn the truth about money, mortgages, and closings, as well as the necessity of mentorship in your investing career. Mentor with the best as Chris Albin guides you through an assessment, and identify red flags that you should look for and be aware of in every real estate transaction.
Real Estate Red Flags Class Segments
This Pre-Assessment is to raise awareness of your current knowledge level and give you a glimpse of the information covered in this course.
Chris Albin, a qualified and experienced investor, teaches you how to reduce risk and to increase the probability of your success, as he teaches about the traps to watch for.
03 BUYER BEWARE & REAL ESTATE ROAD BUMPS
We should all be aware of the risks of real estate.
04 A REALITY CHECK-UNDERSTANDING STUPID THINGS CAN HAPPEN IN REAL ESTATE
With every deal there is risk, but if we have the correct information and structure we can minimize the risk. Chris shows you the first steps to take.
05 SELECTING YOUR REAL ESTATE TEAM
Who do you want to have on your team? Chris shows you how you can set up a team of people, such as an attorney, a realtor, a title company and many others.
06 LEAD GENERATION & SELLER MOTIVATION DOESN’T EQUAL A GOOD DEAL
Chris shares some hard earned investor insight: “confirm everything.”
07 DOING RESEARCH & DETERMINING YOUR PATH OF PROGRESS
How can you find out what a local market is really doing? Chris shares a few tips to help you understand the market you are considering.
08 DEAL ANALYSIS: VALUE, APPRAISAL, MARKET VALUE
What is a reasonable listing for your market? The MLS, comps. and other details will help you to understand the local area.
09 DIFFERENT MATH CALCULATIONS FOR BUY & SELL ANALYSIS
While there is only one formula for buy & sell analysis, there are several ways to look at that formula. Chris walks you through those calculations.
10 DETERMINING THE RETAIL VALUE OR ARV (AFTER REPAIR VALUE)
Chris walks you through how to calculate your after repair value (ARV) with the help of local comps.
11 BUY & SELL ANALYSIS – BUYER & SELLER COSTS
Typical buyer costs (such as recording fees and appraisals) and typical seller costs (such as marketing fees) are covered in this segment, as Chris continues with the analysis.
12 REPAIR COSTS & THE 3 VALUATION SYSTEMS FOR APPRAISALS
What are the three valuation systems and which is most helpful for you, as an investor?
13 PROFIT ANALYSIS & THE OFFER
Can you determine how much profit is enough to make the deal work for you?
14 INCOME VS. GROWTH, BUY & HOLD REAL ESTATE CASH FLOW
Are you looking for regular/immediate income or long-term growth? Chris helps you identify what may work best for you.
15 CASE STUDY #1: “IS THIS A GOOD DEAL?”
Determine if this deal is a good one or or not, by going through this exercise with Chris and the studio audience.
16 FOUR ELEMENTS RELATED TO RETURN ON INVESTMENT (ROI)
Why does it make sense to both buy & hold and flip properties at the same time?
17 APPRECIATION IN REAL ESTATE & PRINCIPAL PAY DOWN
The two elements of ROI, appreciation and principal paydown, are explained in detail here.
18 DEPRECIATION & YOUR REAL ESTATE INVESTMENT
Another element of ROI (depreciation, the gift that keeps on giving) is explained in detail.
19 CALCULATING CASH FLOW INCOME VS. EXPENSES
What elements go into the calculation of cash flow? Chris goes over the details here.
20 CASH FLOW MANAGEMENT- COMPANIES, ACCOUNTING, LEGAL FEES & EXPECTATIONS
Chris covers some of the elements of cash flow management, including expenses such as utilities, legal fees, HOA fees, and others.
21 CASE STUDY #2: “HOW MUCH IS THE MOST YOU COULD PAY FOR THIS HOME?”
When analyzing a property, you need to ask, “What is the most I can pay for this and still come out ahead?” Here is your chance to see how to find that answer.
22 DIFFERENT WAYS TO CALCULATE ROI
Can ROI be figured another way? Yes, but they may not all be best for you.
23 DEAL ANALYSIS-BUY & HOLD MATH VS. BUY & SELL MATH
Is it best to buy and hold, or to buy and sell? See how Chris decides the answer.
24 CAUTIONS IN THE OFFER & CONTRACT
“Fill in every blank” is just one of the basic rules of the game for the new investor. Chris covers a few others here.
25 CONTINGENCIES IN THE CONTRACT
Always be sure to include honest contingencies as a protection in every deal.
26 “AS IS…WHERE IS” OFFERS & THE CONTRACT
If an ad says “as is” or “where is,” what does that mean for you? Chris discusses this language here.
27 DUE DILIGENCE- TITLE ISSUES
Chris explains why you need title insurance.
28 DUE DILIGENCE- ENVIRONMENTAL ISSUES & LEAD BASED PAINT
Always be sure to test for environmental issues such as lead before signing an offer.
29 DUE DILIGENCE- ASBESTOS & RADON
Details on asbestos and radon testing.
30 DUE DILIGENCE- MOLD
Learn about the process and results of mold testing.
31 DUE DILIGENCE- METH
Know the ins and outs of meth testing, and how it affects your decisions.
32 DUE DILIGENCE- BED BUGS, CHEMICALS & OTHER ITEMS
There are often other items you may need to test for, such as chemicals.
33 DUE DILIGENCE- HOME INSPECTIONS
Why do you need a home inspection and what should be covered in that process?
34 DUE DILIGENCE- TENANT ISSUES
Be sure to get copies of any leases or other documentation related to the house you are considering.
35 TRICKS OF THE TRADE, “THE PAINTED PIG”
Chris talks “tricks of the trade” and explains the term “the painted pig.”
36 TRICKS OF THE TRADE, “CREATIVE ACCOUNTING”
Beware of creative accounting. CAP rates leave out debt services. Be sure to “crunch” the numbers.
37 TRICKS OF THE TRADE, “THE PRIVATE PLACEMENT MEMORANDUM (PPM)”
PPM can be, but is not always a good idea. Read carefully.
38 TRICKS OF THE TRADE, “BUYING FROM A BULK BUYER OR INEXPERIENCED INVESTOR SELLER”
Bulk buyers and inexperienced investor sellers can be dangerous. Buyer beware.
39 HOW YOU CAN VERIFY INFORMATION ABOUT YOUR POTENTIAL PURCHASE
Property information can be verified through a number of means, such as the Tax Assessor.
40 CASE STUDY #3: “WHERE ARE THE TRAPS?” WALTER’S HOUSE
The instructor takes you through a case study to see if you can find the traps.
41 FINANCING YOUR DEALS- SELLER, TRADITIONAL, GOVERNMENT, PRIVATE & HARD MONEY
Chris goes over some of the most common sources of financing your deal.
42 INSURANCE & YOUR POTENTIAL REAL PROPERTY INVESTMENT
Be aware of what is and is not covered in your policy.
43 INVESTOR’S “TO-DO LIST” AT THE TIME OF CLOSING
Chris shares a to-do list for closing time.
44 AVOIDING THE BIG “DEAL KILLER” FEAR
Fear is your biggest enemy as an investor. Be sure to keep it at bay by doing your homework.
This Post-Assessment is to measure your increased knowledge and see how much information you have retained from the course.