Richmond Real Estate Investors Association

The Richmond REIA and Investor Group invites you to join us at our monthly MeetUp and DEAL MAKER Session.

Our Monthly MeetUp’s and DEAL MAKER Sessions have been successful and productive every month so far.

If you are a beginner, experienced and or avid Real Estate Investor this is the best local Richmond Virginia Group to join.

Your Guest Speaker is  Bob Zachmeier:

Bob Zachmeier was raised in Mandan, North Dakota and bought his first rental property in 1982 at the age of 22.  He worked in 17 states before settling in Texas and being transferred to Tucson, AZ in1999.  Bob left a 22-year career in Defense Electronics to open a real estate brokerage in 2004 and within 5 years was the top agent in Arizona, selling 3,300 homes in the past 11 years.

After decades of owning rental properties, Bob discovered notes and realized that “mailbox money” was far superior to the “tenant and toilet” hassles of rental property.  He transformed his real estate business to specialize in private financing for the self-employed business owners banks turn down.  Bob created NoteCarry.com to structure notes, wraps, rental comparisons, etc. with separate reports for buyers, sellers, and investors. His creative solutions have helped hundreds of buyers across the country purchase homes without banks.

The Perfect Storm for Real Estate Investors – by Bob Zachmeier

When someone tells me they’re an investor, I ask what type of investing they do, “buy and hold” or “fix and flip?”  If they say, “fix and flip”, I respond by saying, “Oh, so you’re NOT really an investor, you have a job!”  Flipping homes is no different than selling homes, if you don’t get a sale, you don’t get paid!

When people ask what type of investing I do, I usually tell them, “I’m a cash flow investor because, call me crazy, but I like to be paid every month whether the market’s up or down and whether I feel like working or not.

Many “fix & flip” investors who made a fortune buying, renovating, and reselling REO properties during the Great Recession are now sidelined because they can’t find properties to buy at 70 cents on the dollar.  Their model just doesn’t work in a market with low supply and high demand.

I recently sat on an expert panel at our investor club consisting of five seasoned “flippers” who’d each renovated over 100 homes.  I asked the panel members whether they had ever offered financing to even one buyer who purchased their homes.  Not a single “flipper” had created a note for their buyer.

I said, “Buyers will pay a premium of at least a $10,000 for financing, so on the 100 homes you sold, you lost $1 Million Dollars of potential profit!  That money would be earning 8% interest, which would be paying out $88,000 per year for the next 30 years!”  You could have heard a pin drop…

As “fix & flippers” struggle to earn even a little profit with their he-man power tools, cash flow investors are raking in record profits with a pencil!

Ten years after the market meltdown, many homeowners still don’t have the equity required to sell. They’re tired of waiting to break even, tired of being trapped, and ready to move on with their life!

These homes can often be acquired for the value of the underlying loan, allowing investors to buy dozens of homes for the same down payment banks would require to purchase just one investment property.  Years from now, investors who adapt to the current market will fondly remember 2016 as “the good old days” when free houses were everywhere, like sea shells on the beach!

According to Ellie Mae, only 72% of those who applied for a mortgage last month were approved and 28% were turned down!  Buyers the banks turn down will pay a premium for homes with financing.

Many of those turned away are self-employed, and arguably the hardest working people in America!  Their employees with W-2 income can usually qualify for a home loan but the person who signs their paycheck can’t qualify!  Who comes up with this stuff?

Let’s review:

1) Flipping homes and selling homes are jobs that require constant work

2) There’s a shortage of housing inventory (especially at low price points)

3) Sellers with no equity will give you their home (inventory) if you make pmts.

4) Banks are turning away 28% of loan applicants who apply for a mortgage

5) Buyers who can’t get a loan will pay a premium price and large down pmt.

6) Being the “money collector” is legal and you’re not doing anything about it!

Every Tuesday our NoteCarry Network webinars outline real deals from the initial call to the closing statement showing how we structured the deal. Send an e-mail to bob@notecarry.com with Richmond REIA in subject line to gain access to TWO weeks of my webinars at no cost.  See you Tuesday.  Bob Zachmeier  520-404-3744.

Let’s finish the year strong so please join us and bring a friend or guest.

Wednesday, June 14th, 2017

6:30 PM to 9:00 PM

CPA Center

4309 Cox Rd

Glen Allen, VA 23060

 

Coming Soon:

June 22nd, 2017:

Richmond REIA Cook Out / Networking Event 

6:30 PM to 9:00 PM

Fresh Start Renovations Pavilion

15474 Pouncey Tract Rd

Rockville, VA 23146

 

Members:

 

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