All Forum Posts by: Dan Zitofsky

great topic of conversation @Martin Saenz  most peolke know me and especially when I speak at an event. Its all exit strategy. What are your true goals? Are you in this for a job or to create true wealth. First strategy is obvioulsy a work out but with that being said I never buy a note on an asset I dont want to own in my portdolio. 

My niche as most know is seller financing turn key rentals in emerging markets where financials make sense for seller financing to investors and I can get all or most of my money back in 12-24 months so I have velocity working for me. I built my business for many years this way. Now I keep pretty much all my performing notes and enjoy the freedom it allows but I used to sell mosf off as partials. I can go on forever but I guess at the end im saying understand when buying a low end asset you have only 2 exit strategies and neither is fun at the end. Buy the right asset in the right market and youll be on your way to true passive wealth. Best wishes and luck to all. 

performers are great for new note investors to get their feet wet and start to learn about servicing, collateral, loan boarding, insurance, taxes, etc. Ive been at this business as an investor 29 years and note investor now about 17 years. I have worked on well over 700 notes from Non performing 1sts, 2nds, performers and CFDs. There is a right and wrong for everyone but its most important when doing notes to start backwards and figure out your exit strategy. For example: I want to own the asset if I cant get the borrower reporforming, then turning in into a Turnkey rental property and selling it to an investor. By doing this, I usually get all or most of my money back in 12-18 months and then collect passive monthly payments with no headaches from a non owner occupied borrower, with equity and skin in the game for 15years. If I truly need my money or some of it, I can sell this note at par or even sell off payments to another passive investor as a partial. 

We just sold off a decent amount of CFD's (Contract for Deeds) in a great market for them to very passive investors as they are all performing with equity and skin in the game. You wont make huge returns but Im saying this as it was their exit strategy and they want performing assets and happy with returns which may be less than Non performers but they can expect to see their monthly payments without too many issues. Since I switched my model from holding a note on my turnkey rentals my life has changed completely. Wish you all the best and hope this helped shed some light.

Alex. Sorry Im late to the response on this. As an investor who sells off many turn key rentals I just want to give you some helpful advice. Most important aspect when searching T/K rentals are the team and the target market. You really need to make sure you're in an emerging market and you have the right team in place. We have helped so many investors and honestly if your looking to keep it at 40K your probably going to be in a class D neighborhood which in turn makes the team even more important. We have helped and spoke at so many events and opened the eyes of what you should be looking for on these. Wish you the best in your endeavors. Hope this helped. 

I am looking forward to speaking at 2:00 PM EST today (Friday October 14th) to show you what I do a bit different than most to create true wealth and passive income. There are so many great speakers and Im honored to be asked to share my model with those seeking the same goals as I have been able to reach. If you have any questions after I speak, please don't hesitate to reach out or meet me at one of my future speaking events nationwide. 

Dan Zitofsky, Managing Director

Zitofsky Capital Management

First piece of advice is to understand your goals on the market. What return cash on cash, are you looking for? Are you a seeking cash flow, Appreciation, tax benefits, etc? I meet with approximately 10 plus investors per month and some have this down and understand the game. There are some areas with huge cash flow but the properties won't appreciate and others with minimal to no cash flow but will appreciate tremendously. You have to understand each and what makes sense for your goals. You would want to have a goal and work backwards. For example, if you need to make a certain amount per month, you'd want to figure out from your cash how many properties you could acquire and how to get them. You'd want a plan of possibly refinancing to cash out and turn the equity into multiple properties. Make sure the group or person you work with is experienced and the team has been vetted and can handle your needs. I have been at this over 25 years and invest in multiple emerging markets for my investors and have managed the realtors, property managers, contractors, title company and attorneys. A good turn key company can truly assist you in creating wealth using your cash or retirement accounts. Wish you all the best and if I can answer any questions, please feel free to ask. 

Partner with someone for the minimum down so a hard money lender is willing to fund this. If you find a good deal you could also JV with a money partner and take less to learn and get your feet wet. Best of luck

If you put 20% down on purchase and rehab go with private money to close quick. Make sure cost of money is evaluated in your ROI. Best of luck always.

my best advice is to drive the market and talk to people. I started off years ago in areas like west philly, port richmond and moved all the way into center city. You have to move quick n Philly and now I am creating my own rental market by developing rental properties from old warehouses, etc in areas that have a demand. As Garrett and Joe mentioned I wouldn't base it off an article or just a certain area. Best of luck in your endeavors and glad to help always. 

Dan

Sorry. i didn't mean to quote you but wanted to answer. I warn you up front that its very important to put everything in writing. i can't tell you how many deals Ive lent on that I hear a investor and contractor or friend will partner and it ends up going south. Could be many reasons, such as the contractor finds out he could be made more being a contractor and not the owner, etc. You really need to spell out what each person is responsible for and what you will do should there be an impass. Who will be the mediator, etc. 

Hope this helps

Dan