STEP 1: Purchase Price? Bed Bath Count? Address? ARV? PITI: $740. VS. Rent Rate: $1,100 ($100-$200 with Wrap or Lease Option) $360 GROSS PROFIT Does it cashflow or not? YES. - Go to step 2. NO. - Renegotiate/Loan Mod or you assign to a non caring party. (Homeowner that will live in the property) Group home buyer. AirBnb buyer. Ask yourself… is the entry fee a deal killer? STEP 2: ENTRY FEE: 7 parts to an entry fee 1. Cash to the seller. $1,000 2. Arrears/late payments/liens: $23,000 3. Cost of acquisition: $4,000 4. Closing costs: $2,000 5. Renovation costs: $1,000 6. Maintaining the property: $2,000 7. Marketing Costs: $500 Total ENTRY FEE: $33,500 (possible to renegotiate?) No…. Cannot renegotiate. OR Raise private capital (10 exits) YOU ARE THE OWNER 10% $33,500 X .10 = $3,350 $3,350/12 payments = $280 STEP 3: Exit Strategy: 1. Wholesale it. Buy and hold investor or Homestead buyer. 2. Novate it. List on MLS 3. Wrap (0-5%) 4. Lease option (10% Vacancy Repairs) 5. SRRR (Subto, Rehab, Rent, Repeat) 6. BRRR (Buy, Rehab, Rent, Repeat) 7. Subtail 8. Vacation Rental 9. Group Homes/Assisted Living. 10. Corporate Rental