Creating Wealth Through Real Estate

Most recent REO Rehab Flip

Here is a video of my most recent REO flip, now in negotiations with buyer who has presented written offer.

William Barnard is a full-time real estate investor with a focus in REO acquisitions, fixing them, and retail flipping for maximum profits. He does millions of dollars in real estate transactions each year. He also offers rehab deal opportunities to other investors through his wholesale deals. To join his So CAL buyers list, go to www.BarnardEnterprises.com

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Sub2 home run in CA

I usually buy REO properties for my rehab flip strategy here in CA, however, I was recently presented a deal in which a private seller needed out of a situation (problem) and I was able to solve this seller's problem. In doing so, I was able to contract a deal which included the ability to purchase this investment home using the sub2 (subject-to) strategy. This strategy basically allows a buyer to purchase a property, transferring title into the new buyer’s name, while keeping the seller's existing mortgage in place. NOTE: A key to success in this business is your ability to solve problems for others. Becoming a good problem solver can deliver nice paychecks!

Typically, I would use my cash reserves along with private lender financing to acquire a property with "All-Cash". This allows me to get the very best price for my acquisitions. In this "sub2" scenario, I get the best of both worlds in that I have arranged a great purchase price for a great property and also received easy and cheap financing for it (in the form of the existing mortgage).Here are the numbers: Purchase price is $205,000, current loan is just under $160,000 principle balance at 6% interest, rehab costs are $40,000, and exit value (also known as ARV which stands for after repair value) is $369,000 (the price in which I intend to list it for sale after rehab completion). With $205k in acquisition cost and $40k in rehab costs, I have effectively purchased this home for an "all-in" cost of $245,000 which is only 66% of the ARV. Anything at 70% or below is considered in this market a homerun of a deal.

Since the purchase price is $205k, but I am getting financing in the form of the existing mortgage for $160,000, I only have to bring $45,000 cash to the table to close this deal and that my friends is what makes a deal like this even better. Of course my total cash outlay is higher due to closing costs, rehab costs, and holding costs, but all told, should not be more than $95k. Typically, I would borrow from a private lender and pay 10%-12% in interest, but in this case, my interest cost is half that at the 6% mark.

To understand the format and how a sub2 deal is drawn up, I highly recommend that readers do a search here on BP Nation as it has been discussed in the forums many times. I hope this example sheds some light on the possibilities that do exist today in the real estate investing market. A deal like this may be few and far between, but hard work and persistence pays off (along with good relationships) and deals like this can and are being done today, right here in Sunny Southern California! Don't be too jealous NY as you freeze your butts off right now.

Naked Real Estate Investors Club

Last night was Rosie Nieto's Naked Real Estate Investors Club Meeting in Los Angeles where the attendees learned about finding private money and how to get it. It was a great evening and lots of great questions and information was shared.

Before we got into the main topic, I was front and center to discuss next month's meeting, of which, I will be the main speaker to discuss starting out in real estate investing - the real truth and I will discuss wholesaling, rehab flipping and buy and hold strategies. There is a huge misconception that newbie RE investors can make easy profits in wholesaling using no money and no credit. While you can invest without those two items, I will discuss the fallacies of such and what it really takes to get started and how to do it right.

I will be following the February Meeting up with another a few months later creating a "boot camp" of education (for lack of a better term) right at the meetings. It will be lots of fun and a great deal of real education and information will be shared with all who attend with absolutely NO up sells or things to buy, so leave your wallets at home (except for your admission cost to the meeting and your beer money!

One exciting thing for me last night was the fact that I asked for a show of hands of all BP members and almost half the room raised their hands! Quite an accomplishment as I refer everyone here to BP and vice versa, everyone to our club meetings both of which are valuable assets to all who get involved.I look forward to seeing you all next month at Rosie's February Meeting.

As a thank you to BP Nation (and with Josh's permission) I will be offering a FREE 6 month Pro Account on BP to the lucky raffle winner, of which I will donate the fees for. That is a value of approx $90. I will also offer another raffle gift in which two attendees with the winning raffle tickets get to spend a day with me on the rehab job sites learning through my business model right along side of me. Happy Investing to all.

Will Barnard is a full-time real estate investor with a focus in REO acquisitions, fixing them, and retail flipping for maximum profits. He does millions of dollars in real estate transactions each year. He also offers rehab deal opportunities to other investors through his wholesale deals. To join his So CAL buyers list, go to www.BarnardEnterprises.com

A MUST for ALL Real Estate Investors

Biggerpockets, or BP Nation as I like to refer to it, is a must for all current or would-be real estate investors. BP Nation is one of the very few, if not the only, website where you can find tons of FREE information about any RE topic you desire and get multiple points of views from a wide range of personalities. The membership of BP Nation is what makes this site so great, add in the features and the site itself, and you have the perfect environment to learn, network, do business, get advice/opinions, and even make money.

In today's world, information is key, and BP Nation has it. One thing I tell all newcomers is to stay active and participate on the site. Those that do, are those who become successful, those that don't, don't. From blogs to articles, to specific topics in the forums, you can read and learn about everything Real Estate and best of all, you can ask questions and get almost immediate responses because we have such a large base of active and experienced members who take the time to contribute their time and knowledge to assist others. If BP Nation is not part of your RE life, it should be! You can find Biggerpockets by going to the following website link: Sign Up Today

Will Barnard - Nationwide Property Investments, LLC and Barnard Enterprises, Inc.

Caught in the Act!

One of my recent REO purchases was direct from the asset manager and the property was never listed on the MLS (not even an hour). It came with the current homeowner in place and as such, I made several efforts to contact them to arrange for them to move out.

Long story short, I finally made contact with them and was able to get inside the property to view the condition of the interior and speak with the occupants directly. In doing so, I explained how so many people are trashing REO homes and stealing all the items from the home. I further explained that I would allow them to stay in the home rent free until their requested move out date which was a few weeks after I expected to close. The offer was that they were to leave the home in good clean condition and not take all the items from the home such as the appliances, light fixtures, etc.

This was agreed to and off I went to complete the acquisition. As it turns out, the bank was not able to close on the contracted close date so an extension was given to me which I agreed to (of course, that actually helped me as I had less holding costs and shortened the time in which I had to sit and wait for the move out date from the occupants)

On to the move out day, I made phone contact and arranged to stop by and get the keys. The occupants wanted an 8 PM key pick up at the subject property, which I initially wanted to be much early, but agreed to. I informed my agent who often lists the properties for me along with many other services, and he took it upon himself to do a drive by at the subject property around 4PM that same day.

Upon my agent's arrival, the moving truck was there, the front door wide open and so he entered. The occupants were in the backyard packing some items and my agent noticed the many light fixtures, ceiling fans and kitchen appliances sitting on the floor in the living room packed and ready to load onto the truck. He immediately called me and informed me of the situation.

As you can imagine, my blood was now reaching the boiling point and only self control prevented me from going postal. I contacted the Sherriff's department and spoke with the dispatch officer informing her of the situation. She asked when I would be there and I told her I was in route, with an ETA of less than 10 minutes. She informed me she would send officers over right away. I was now apparent to me as to why they wanted such a late key pick-up (they would not be there nor would any of the items from MY home).

I arrived to find one of the occupants in the moving truck ready to drive off. There was also two other individuals assisting her in taking everything from the home. I yelled to her, "What are you doing!?" I was angry and could not believe that my level of kindness towards this family was being repaid with theft, property destruction, and aiding and abbetting.

As I demanded she get out of the truck and turn off the engine, she started to pull forward very slowly as to run me over. I stood my ground, although very cautiously, and prevented her from driving away, knowing the police would be there shortly. She did stop and get out, & then I went off on her. One of her helpers told me to calm down and stated he was a police officer. I told him to mind his own business and show me his ID. He proceeds to a vehicle and pulls out an AZ prizon guard ID which I laughed at and stated he has no jurisdiction here in CA. I also asked how he would feel about losing his job for committing a crime here in CA (no answer and he quickly shut up).

Two Sherriffs vehicles pulled up just a few minutes after I did and just in time. I informed them of the situation and told them I had all my documents proving I was the homeowner and they were committing numerous crimes. The officers immediately instructed them to leave the items they had tried to steal and we got some of the stuff back from the truck that they had already loaded.

They had caused quite a bit of damage in the fact that I had to re-install all the items they pulled down, including the mirrors from the bathroom walls (yes, the cheap, flat pieces of mirror glass, nothing fancy). They even got away with stealing the gate leading into the backyard! I was able to retain the expensive kitchen appliances which saved me a ton in replacement costs and I just had to re-install them along with some of the light fixtures that were salvagable. The rest I had to buy new and install.

Mark this situation down as one WIN for the good guys! (yes investors are the good guys) I certainly hope that this situation and information enlightens you all as to take as many precautions as possible to prevent such an occurance when taking down property with occupants in place. This situation could have been much worse if I did not have the very best team members.

Will Barnard is a full-time real estate investor with a focus in REO and trustee sale acquisitions, fixing them, and retail flipping for maximum profits. He does millions of dollars in real estate transactions each year. Join him for his next "Make me an Investor Program" and learn all you need to know to buy, fix, and flip REO properties as he does by sending an email to will@nationwidepropertyinvestments.com