Finding and Managing “Profitable” Real Estate Opportunities In Your Own Backyard

2746 Marshall Way, Curtis Park

th St, East Sacramento

Laurel Sagen Minerva Properties, Inc

“The Residences” at Granite Bay Golf Club

Custom Home in Serrano Featured Property in “Sacramento Magazine”

Custom Home in Serrano

$5.3m Napa Valley Farmhouse – New Construction project

17 Ways to Find Deals That Work  Agent pocket listings  Multiple Listing Service (MLS)  Expired listings from MLS  For Sale By Owner (FISBOs)  Craigslist and other internet services  Websites – pay-per-click and other lead sources  Bandit signs  Door to door knocking

17 Ways to Find Deals That Work  Flyer services  Direct mail  Auctions – Property Radar – courthouse steps  Bankruptcy – courthouse record searching  Probate – looking for “letters” – courthouse  Divorce – courthouse records  City and County Dangerous Housing  Tax lien sales  Sherriff and Marshall service

What are YOU good at? What is going to work for YOU?

What RESOURCES do YOU have? Time Money Expertise Relationships

WHO is your CUSTOMER? End User – Homeowner – Landlord – Renter Flipper – Wholesaler Other…..

What is the MARKET doing? What is YOUR Market doing? How do you know?

This is a RELATIONSHIP business How are you Building Relationships?

What is the KEY To Making Money In this BUSINESS?

Project Evaluation – UPFRONT Due Diligence Project Financing – can make or break your deal Project Management – Mitigating the risks UPFRONT

Project Evaluation Due Diligence – inspections, surveys, planning, permitting Highest and Best Use “Subject To” BPO or Appraisal Market Conditions and Timing Scope of work Budget Estimate Target ROI – Risk Tolerance

Project Financing Source of Funds – Hard, Private, Conventional, Cash Cost of Money – interest rates, points, fees Term – how long do you NEED the money? Loan extensions - can be costly + points, fees Loan to Value Ratio – how much cash is in the deal? Hidden costs - prepayment penalties, minimum interest, 3 rd Party Inspection fees, etc

Project Management Managing – TIME – project timeline MONEY – Fixed budget SCOPE OF WORK – Stick to the plan CONTRACTOR – experienced, communicator

What did you Forget? Property Taxes Insurance – Hazard, General Liability, Builder’s Risk Closing Costs Staging?

Evaluating Profitability Top down approach

AFTER REPAIR VALUE Less Rehab costs Less Financing costs Less Carrying and Closing Costs Less Net Profit (What you get to take to the BANK) = PURCHASE PRICE (What you can AFFORD to pay)

What’s the #1 question I get asked all the time?

“How do I keep my project in budget?”

It’s all about the ….. The “Vision” – Architect, Designer, Contractor Comprehensive Scope of Work Line Item Cost Breakdown - CONTINGENCY Project Timeline - Milestones Qualified Contractor – who understands concept of TIME = MONEY

It’s all about the.... Construction Contract Fixed Price or Cost Plus (%)? Fixed Bids from subs or Time & Materials? Late Penalty and Early Incentive clauses Don’t deviate from the PLAN Unexpected issues? Increased scope of work and costs? THAT’S WHAT THE CONTINGENCY IS FOR!

Laurel Sagen Minerva Properties, Inc

Mandy Snell Architectural Design, Project Management (916) “Wealth is a Team Sport “