Intro to Real Estate Investing and Acquisition Strategies

Welcome to your first step in mastering acquisitions at Platinum Investment Co.! This training module will give you an overview of real estate investing principles and the acquisition strategies you’ll use in your role. Let’s dive in!

What is Real Estate Investing?

Real estate investing involves purchasing, managing, and profiting from properties. At Platinum Investment Co., we focus on creating value through creative acquisition strategies like wholesaling, subject-to financing, seller financing, and cash deals.

As an Acquisitions Manager, your job is to connect sellers with solutions while ensuring deals align with the company’s profit goals.

Key Acquisition Strategies

Here’s a quick overview of the primary strategies you’ll use:

1. Wholesale Deals

  • What It Is: Acquiring properties at below-market value and assigning the contract to an investor for a profit.

  • Your Role: Negotiate favorable terms with the seller, submit the contract for assignment, and let the dispositions team handle the buyer side.

2. Subject-To Financing

  • What It Is: Taking over a seller’s existing mortgage payments without formally assuming the loan.

  • Why It Works: Helps sellers avoid foreclosure and allows us to acquire properties with minimal upfront costs.

  • Your Role: Build trust with the seller, explain how the process works, and structure a deal that meets their needs while ensuring company profitability.

3. Seller Financing

  • What It Is: The seller acts as the lender, allowing us to make payments directly to them over time.

  • Why It Works: Creates win-win solutions for sellers who want ongoing income and buyers who need flexible terms.

  • Your Role: Negotiate favorable payment terms and structure deals to minimize upfront costs.

4. Cash Offers

  • What It Is: Offering a seller a quick, no-hassle cash payment for their property.

  • Why It Works: Ideal for distressed sellers who prioritize speed and convenience over getting full market value.

  • Your Role: Analyze comps, determine a competitive offer, and present it to the seller as their best option for a fast sale.

How to Evaluate Properties

Before making an offer, you’ll evaluate properties to determine their value and potential profit. Here’s a quick breakdown:

1. Run Comps

  • Use tools like Zillow, Redfin, or PropStream to find comparable properties (similar size, age, location, and condition).

  • Look at recent sales (last 6 months) to determine the After-Repair Value (ARV).

2. Calculate Repairs

  • Assess repair costs using our repair estimate checklist.

  • Get detailed estimates for major items like roofs, HVAC systems, and foundation repairs.

3. Determine the Offer Price

Use the 70% Rule for cash deals:
ARV×70ARV × 70% - Repairs = Maximum Allowable Offer (MAO)ARV×70

For creative financing, focus on monthly cash flow and upfront terms rather than MAO.

Best Practices for Success

  • Build Rapport: Sellers are more likely to trust and work with someone they like. Be empathetic, professional, and approachable.

  • Focus on Solutions: Always frame your offer as a solution to the seller’s problem.

  • Know Your Numbers: Confidence in your numbers builds credibility and increases deal success.

  • Leverage Team Support: Use the Discord channel and company resources for guidance on tough deals.

📄 Next Steps

  1. Review Training Videos: Watch the overview video on real estate investing and acquisition strategies.

    • [Training Video Link]

  2. Download Key Resources:

    • [Property Evaluation Checklist]

    • [Acquisition Strategy Cheat Sheet]

  3. Practice Scripts: Use the provided scripts to role-play common seller scenarios.

    • [Download the Script Here]

Congratulations on completing your first module! Stay tuned for the next section: "CRM and Dialer Training."