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Skyline Properties, Inc. Liberty Capital
Broker, Investment Specialist Broker, Investment Specialist
Skyline Properties, Inc. Liberty Capital
• Curiosity
• Take action to start investing
• Build financial security
• Confidence in real estate investing
• Knowledge
Skyline Properties, Inc. Liberty Capital
• Information database
• Financial backing
• In-house rehab contracting services
• Property management services
Years of investing success & rehab experience
Skyline Properties, Inc. Liberty Capital
• UGLY homes are great!
• Think long-term
• Know your market
• Understand the risks
Skyline Properties, Inc. Liberty Capital
• Some of the best returns come in
moderate to average neighborhoods
• Don’t be afraid of a little work
• Know the area demographic
Skyline Properties, Inc. Liberty Capital
• NOT a “get-rich-quick” business
• Every deal is not a homerun
• Careful and Methodical wins the race
Skyline Properties, Inc. Liberty Capital
• Be cognizant of market trends
• Where are the first time Homebuyers
buying at
• Choose to invest in areas where the
median family income can buy
Skyline Properties, Inc. Liberty Capital
• The only guarantees in life are DEATH &
TAXES!
• Treat real estate investing like a
business
• Don’t let pride cloud your judgment
Skyline Properties, Inc. Liberty Capital
Pros:
• Quick in-and-out investment.
• Return on Investment of 30% or more (in 4 month or less
period).
• Easy to qualify for bridge loan to purchase at auction
15% down.
• Only 2% for hard money (as opposed to industry
standard of 5%).
Cons:
• Need larger margin than rentals and can sometimes be
difficult to win at auction due to competition.
Skyline Properties, Inc. Liberty Capital
• The rental market is hot right NOW! Take as much
advantage of it as possible.
• Less risk, with higher long-term returns
• You will cashflow now, gaining monthly income (with up to
10 homes, $3,500 to $6,000+ per month)
• Hands off- Passive income (Property management takes
care of all tenant needs and hassles)
• You will build equity into the homes
• Future sale of homes will bring large payoff - much larger
than flipping now
Skyline Properties, Inc. Liberty Capital
• We can structure the deal so you can either:
a. Get your down payment back, or
b. Apply their down payment towards the fix up costs, so no
further money comes out of the buyer's pocket after
purchasing.
• You will win more bids and buy more homes, since we don't need as
large of a margin as flipping
• Tax benefits (Depreciation, interest write offs, etc)
• We've leased out over 100 homes in the last two years, so there is
100% confidence that any home a client buys will be rented out within
45 days after fix up is complete to get you into buying another one
and building a portfolio."
Skyline Properties, Inc. Liberty Capital
Pros:
• Great deals, sometimes 70% of retail price or less
• Hard money loans easy to get approved for (based on property
value)
• Immediate ownership after auction
Cons:
• Not always able to see inside of the home before purchasing
• Need 18% cash at time of purchase
• If owner, 21 days until possession. If tenant, 60-90 days until
possession or cash for keys
• No contingencies, once purchased it's yours!
Skyline Properties, Inc. Liberty Capital
Notice of Default
Auction
Postponed
Sold to Bank
Sold to 3rd
Cancelled
Trustee’s Deed
90
Days
Notice of Trustee
Sale
30
Days90
Days
Skyline Properties, Inc. Liberty Capital
Notice of Default
90 Days of missed
payments to your loan
servicer
While the homeowner must receive a “Notice of Default”, it is not
commonly recorded in Washington state, and therefore not
tracked in foreclosure radar. RCW 61.24.030
Skyline Properties, Inc. Liberty Capital
Notice of Trustee Sale
Trustee sets auction date.
Recorded at least 30 Days
after the Notice of Default.
RCW 61.24.030(7)
Skyline Properties, Inc. Liberty Capital
AuctionInitial auction date. At least
90 days from the Notice of
Trustee Sale.
RCW 61.24.040(1)(a)
Skyline Properties, Inc. Liberty Capital
Auction
Postponed
Sold to Bank
Sold to 3rd
Cancelled
Sale occurs on Friday.RCW 61.24.040(1)(a)
Sale occurs on a Friday.RCW 61.24.040(5)
Auction may be
postponed for 120 days.RCW 61.24.040(6)
Skyline Properties, Inc. Liberty Capital
Transfers property to
the highest bidder.
Possesion granted 20
days after the sale.RCW 61.24.060(1)
No deficiency judgment.RCW 61.24.100
Trustee’s Deed
Skyline Properties, Inc. Liberty Capital
Kent Duplex
Purchased for $105,000
Fix up $7,000
Monthly Payment (P.I.T.I.) $900
Rented for $1,700
Net Cashflow/ month $800/month, $10,200 per year
Equity $40,000
Skyline Properties, Inc. Liberty Capital
Everett Flip
Purchase Price $42,100
Fix Up $15,000
Sale Price $84,950
Net Profit $20,000
Skyline Properties, Inc. Liberty Capital
Preferred lending partner
In-house professional leasing
and sales team
In-house construction for rehab
Skyline Properties, Inc.
Professional property
management services
Real Estate & Property Management
Skyline Properties, Inc. Liberty Capital
Through our preferred lender partner …
Your Real Estate Lending Partner
Skyline Properties, Inc. Liberty Capital
Because you need to pay at the time you purchase a property at the Trustee sale, it is impossible to secure a conventional loan.
Hard money financing, or “Bridge” loans make it possible to secure auction properties for a short term.
Skyline Properties, Inc. Liberty Capital
Loan Requirements:
• 1st Lien Position
• LTV =<75% of Current Market Value
• Viable Exit Strategy in Place
Standard Loan Fees:
• 2-4% Origination Fee
• 10-12% Interest Rate
• $695.00 Administrative Fee
• Up to 12 months
Skyline Properties, Inc. Liberty Capital
Member Agreement signed
Filling out loan application
Approval for hard money if flipping
Approval for hard money AND conventional loan if holding