| Real estate colleagues,
We're excited to announce a new panelist for our investor session Katy Klesitz!
Katy will share how to start a single-family rental investment division to your traditional real estate business so you build long-term wealth and passive income in real estate.
Get your early bird $299 discount ticket right now.
With a 5-year old and a 3-year old at home, Katy wanted to get back to work last summer after five years away from the workforce.
Katy decided to start buying below market, off-market single-family homes out-of-state.
Katy did the following… - Lined up hard money lenders at 1-2 points and 9% annual interest to buy homes all cash
- Lined up private money relationships with real estate syndicators for short-term funds, too
- Built deep relationships with local banks who will refinance at 80% of the appraised value
- Got a list of distressed properties and homes below the median price in the affordable midwest
- Sent them letters, hired telemarketers, and ran a catchy Facebook ad to generate seller leads
- Hired $4/hr talent overseas to answer the phone and set appointments with those warm leads
- Hired hourly W-2 acquisitions specialists to go on the appointment to help her make an offer
- Built a buyer's list to wholesale any properties that didn't fit her model for a quick cash infusion
- Found a reliable general contractor to handle all the property improvements
- Hired a property manager to rent the homes for 1% a month of what the home cost ($100,000 home rents for $1,000 a month)
In only the past 7 months since she started all this, she grew her portfolio from 15 single-family rentals to 93 single-family rental homes! You read that right. A big jump was with a package of 61 homes she bought all at once with the help of a real estate syndicate for the down payment.
Katy did all this without any money out of her own pocket. She did, however, use savings she built up to buy the marketing necessary to get the phone to ring. Her marketing budget was paid back quickly, however, from the cash-out refinance when the property is all fixed up and rented.
Katy buys homes for a 50-70% discount to market value using the BRRRR method (Buy, Repair, Rent, Refinance, and Repeat). These are homes that need work and the seller must sell right now, nor do they want to put their home on the traditional market.
Katy now collects nearly $1 million a year in rent. When her loans are paid off in 15-20 years, it's very likely she will be able to pull out $600,000 in profits after repairs, vacancy, taxes, management, and insurance expenses (costs are about 40% of revenue). This assumes zero appreciation or rent increases. How amazing is this? I'm in!
She has also started buying in Tulsa, Jacksonville, Salt Lake, Lincoln, Greenville, Myrtle Beach, Nashville, and Waco. She has taken her lead generation, conversion, and acquisition systems into new markets with equity business partners, the modern-day "expansion" for investment.
Fred and I partnered with her to buy a few rental properties of our own in Tulsa. We're closing on two right now, in fact.
I share all this with you because this is pretty incredible. Katy is not a licensed real estate agent. She lives in San Diego, CA and is buying home site unseen in the midwest. She got this all going in just a few months. There's an incredible story here and we're excited to share it with you. We all need to think about how to adjust our businesses for a coming real estate correction because the price can't keep going up like this forever, and how to get off the transaction treadmill of real estate commissions to building real estate wealth.
Katy will be at the event and will have time to answer any of your questions. She will also do a break-out if there's demand for those of you who want to go deeper on her strategy.
Please buy your ticket now to come to Next Level Agents Live 2020.
It's only $299 until (2/29/20) when prices go up. The event is April 23rd-25th in Scottsdale, Arizona. We have a killer line up of speakers here for you, including Mark Willis the former CEO of Keller Williams.
Don't delay. This is going to be one of, if not THE, best real estate conference of the year.
See you here!
Kevin
P.S. A big topic at our event is reconnecting and working your database to get listings. If you haven't had a chance yet, please check out the video marketing plan on the homepage of Vyral Marketing's website. We're customers, and if you don't have a consistent touch plan in place for your database (ideally with video so people can see and connect with you), you're missing out on business. Frank the CEO is speaking on this topic and he will share what's working for us so you can model and copy it. Please make sure to see what they are up to….
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