PURCHASING A PROPERTY WITH 20% DOWN PROCESS Buy & Hold Investment Example

GET PRE-APPROVED WITH ONE OF OUR PREFERRED LENDERS

This step is much less complex than most people think. Why use our preferred lenders? The lenders we use have a proven track record with us and we have gone through 35+ lenders to find the right team members we can trust and that perform for us. One of the key elements to becoming a successful real estate investor is having the right team in place.

In order to get pre-approved with one of our preferred lenders there are a couple of documents that you will need to put together so the transaction runs smoothly.

    (1) 1003 Loan Application (download here)
    (2) Last 2 years tax returns
    (3) Last 2 years W-2's
    (4) 2 most recent pay stubs covering an entire month
    (5) Information on any real estate you currently own
    (6) Copy of your driver's license
    (7) Last 3 months bank statements
    (8) Last 3 months other assets statements (401k, IRA's, Stock, etc)

Once you submit these items to our preferred lender you are on your way to becoming pre-approved to make passive cash flow and retirement!

PURCHASING A PROPERTY WITH 20% DOWN PROCESS Buy & Hold Investment Example

PICK A POSITIVE CASH FLOW PROPERTY WITH EQUITY

At OCG we help our investors pick the best asset for them and provide multiple investment options to choose from. Check out our current available properties (Properties Link).

PURCHASING A PROPERTY WITH 20% DOWN PROCESS Buy & Hold Investment Example

REVIEW ALL DUE DILIGENCE DOCUMENTS

Each investment property that we acquire goes through our rigorous due diligence checklist to make sure the investment is a good investment that will produce the best returns possible for our investors.

Neighborhood Analysis As part of our due diligence checklist we do a neighborhood analysis on every property to make sure the properties are in good areas which will increase the quality of the tenant and our investors returns. We cannot stress enough the importance of purchasing in the correct areas and how it affects our investors' returns.

Market Value Analysis Aside from obtaining an appraisal before we ever even buy a property from a certified appraiser we pull our own comparable sales on each property when doing our up front analysis. In order for us to use comparables in our analysis they need to be within 1 mile of the property and sold within the last 6 months. Those are the lenders requirements so that is what we use to make sure we do not have any appraisal issues upon close of escrow with our buyers.

Rental & Cash Flow Analysis On every investment it is very important to analyze the expected rental value due to its effects on your net cash flow from the investment. Aside from getting rental values from various websites we also check rents around the property and have in-house property management that has experience renting in the areas we purchase properties. Typically in Memphis there is a 1% ratio of rents to the value of the property, meaning a $100,000 market value property should rent for around $1,000 per month! Memphis has one of the highest rent to price ratios in the nation.

Renovation Analysis When determining the renovation costs on each investment property we purchase we do a detailed analysis, room by room, item by item for every part of the property. We also make sure that the major items such as HVAC, roof, plumbing, and electrical are all in perfect working condition and replaced. On top of this we have a RENOVATION guarantee. If there are any problems with the renovation in the first 6 months we cover the costs.

Inspections An inspection is performed on each property we purchase and we compare the inspection report to the renovation bid to make sure all items are covered. We also have inspectors in place with a proven track record and that give us the reports with the right level of detail and pictures inside the report. We also make sure that the inspection report does not have any uninspected items present.

Pictures and Video On every property we obtain before and after pictures and video on each property to show our investors the true transformation of the property into a well oiled positive cash flow investment machine! We always have the proper documentation and backup for all of our investment.

Closing Documents Review We make sure that before the close of escrow we review all of the closing documents. This helps our investors insure that there are no excess fees or charges and that the HUD closing statement is done correctly and presented correctly for future financing.

For more on Due Diligence please see our due diligence video (link)

PURCHASING A PROPERTY WITH 20% DOWN PROCESS Buy & Hold Investment Example

PUT DOWN A DEPOSIT AND SIGN AN PURCHASE & SALES AGREEMENT

Once you have picked out an investment and reviewed the due diligence documentation on the investment its time to put a deposit down and sign a purchase and sales agreement to lock down the property while it is still available. You may want to do this step quickly as our properties tend to sell quickly and you do not want the one you want pass you buy.

Make all checks payable to Owens Consulting Group, Inc. for $2,000 and mail to:

Owens Consulting Group, Inc.
1500 Rosecrans Avenue, Suite 500-406
Manhattan Beach, CA 90266

To fill out a purchase and sales agreement please contact us and we will email you the form to fill out.

PURCHASING A PROPERTY WITH 20% DOWN PROCESS Buy & Hold Investment Example

BANK APPRAISAL, INSPECTION AND CLOSE OF ESCROW

During the closing process the lender will get an appraisal done directly from an outside appraisal management company so that our investors are assured the true market value of the property. We also do a final walk through of the property before it closes escrow to make sure all items are completed and there are no outstanding items on the renovation. If you are purchasing with cash you have the option of ordering your own appraisal or we always obtain an appraisal as well that you can use.

PURCHASING A PROPERTY WITH 20% DOWN PROCESS Buy & Hold Investment Example

SIGN PROPERTY MANAGEMENT AGREEMENT

One of the biggest advantages of using our system to expedite your passive income streams and retirement is that we have IN-HOUSE property management. In addition, we do not have mark-ups on repairs and management fees when the property is not rented like many of the property management companies we have fired in the past. We also have proper communication with our investors on a weekly basis to give them feedback on exactly what is going on with their investment. Once the property management agreement is signed you are on your way to getting some of the best quality management service around.

PURCHASING A PROPERTY WITH 20% DOWN PROCESS Buy & Hold Investment Example

COLLECT PASSIVE INCOME AND BUILD WEALTH

NOW you are ready to start getting PASSIVE cash flow and a great return on investment. We know with certainty that once you have invested with us you will keep coming back for more investment properties that produce cash flow and have the right due diligence done on every investment. We make sure that our investors are taken care of and have a great investing experience.

TRUST DEED INVESTING PROCESS Trust Deed Investment Example

PICK A PROPERTY OR INVESTMENT AND FILL OUT CLIENT INTAKE SHEET

Typically our trust deed investments secure our investors capital against the property at no more than 65% of the appraised market value , provide an 8% interest rate with a consistent worry free monthly, quarterly, bi-annual or annual payment, depending upon the investors preference. See our various investment properties that show what types of investments each trust deed is secured against. (Properties Link)

TRUST DEED INVESTING PROCESS Trust Deed Investment Example

REVIEW ALL DUE DILIGENCE DOCUMENTS

Each investment property that we acquire goes through our rigorous due diligence checklist to make sure the investment is a good investment that will produce the best returns possible for our investors.

Neighborhood Analysis As part of our due diligence checklist we do a neighborhood analysis on every property to make sure the properties are in good areas which will increase the quality of the tenant and our investors returns. We cannot stress enough the importance of purchasing in the correct areas and how it affects our investors' returns.

Market Value Analysis Aside from obtaining an appraisal before we ever even buy a property from a certified appraiser we pull our own comparable sales on each property when doing our up front analysis. In order for us to use comparables in our analysis they need to be within 1 mile of the property and sold within the last 6 months. Those are the lenders requirements so that is what we use to make sure we do not have any appraisal issues upon close of escrow with our buyers.

Rental & Cash Flow Analysis On every investment it is very important to analyze the expected rental value due to its effects on your net cash flow from the investment. Aside from getting rental values from various websites we also check rents around the property and have in-house property management that has experience renting in the areas we purchase properties. Typically in Memphis there is a 1% ratio of rents to the value of the property, meaning a $100,000 market value property should rent for around $1,000 per month! Memphis has one of the highest rent to price ratios in the nation.

Renovation Analysis When determining the renovation costs on each investment property we purchase we do a detailed analysis, room by room, item by item for every part of the property. We also make sure that the major items such as HVAC, roof, plumbing, and electrical are all in perfect working condition and replaced. On top of this we have a RENOVATION guarantee. If there are any problems with the renovation in the first 6 months we cover the costs.

Inspections An inspection is performed on each property we purchase and we compare the inspection report to the renovation bid to make sure all items are covered. We also have inspectors in place with a proven track record and that give us the reports with the right level of detail and pictures inside the report. We also make sure that the inspection report does not have any uninspected items present.

Pictures and Video On every property we obtain before and after pictures and video on each property to show our investors the true transformation of the property into a well oiled positive cash flow investment machine! We always have the proper documentation and backup for all of our investment.

Closing Documents Review We make sure that before the close of escrow we review all of the closing documents. This helps our investors insure that there are no excess fees or charges and that the HUD closing statement is done correctly and presented correctly for future financing.

For more on Due Diligence please see our due diligence video (link)

TRUST DEED INVESTING PROCESS Trust Deed Investment Example

PUT DOWN A DEPOSIT

Once you have reviewed the investment options and due diligence documentation on the investments it's time to put a deposit down and sign a purchase and sales agreement to lock down the investment while it is still available.

Make all checks payable to Owens Consulting Group, Inc. for $2,000 and mail to:

Owens Consulting Group, Inc.
1500 Rosecrans Avenue, Suite 500-406
Manhattan Beach, CA 90266

To fill out a purchase and sales agreement please contact us and we will email you the form to fill out.

Contact us here (link)

TRUST DEED INVESTING PROCESS Trust Deed Investment Example

SIGN A PROMISSORY NOTE

A promissory note is the instrument that the Deed of Trust references governing the terms of the agreement. It outlines the interest rate, terms and much more and is important to read through carefully. Typical terms on our investments are 8% interest with a 1 - 5 year term.

TRUST DEED INVESTING PROCESS Trust Deed Investment Example

FUNDS DEPLOYMENT AND SECURITY WITH A DEED OF TRUST

All funds are wired directly to our attorney's office and secured by a Deed of Trust and reference a promissory note. This assures that our investors' capital is always secure as the property cannot be sold until the investors' capital is paid back 100% plus interest. We never touch the money from any of our investors and help them to invest safely with a great return.

TRUST DEED INVESTING PROCESS Trust Deed Investment Example

COLLECT PASSIVE INCOME AND BUILD WEALTH

NOW you are ready to start getting PASSIVE cash flow and a great return on investment. We know with certainty that once you have invested with us you will keep coming back for more investments that produce cash flow and have the right due diligence done on every investment. We make sure that our investors are taken care of and have a great investing experience.

JOINT VENTURE INVESTMENT PROCESS Joint Venture Investment Example

FILL OUT SOPHISTICATED INVESTOR QUESTIONAIRE AND CLIENT INTAKE SHEET

In order to enter into a Joint Venture partnership with OCG Properties we make sure our investors are sophisticated investors that have the right knowledge base. In doing this we also educate our investors along the way and make sure they fully understand the entire investment. We also have our investors fill out a Questionnaire outlining their understanding and experience. Each investor also fills out a client intake sheet so we have all of the required information before we get started.

JOINT VENTURE INVESTMENT PROCESS Joint Venture Investment Example

GO OVER INVESTMENT OPTIONS AND EQUITY INVESTOR GOALS

Each one of our investors sits down with us to go over their individual goals and financial situation and gets a full explanation of each of our investment options.

JOINT VENTURE INVESTMENT PROCESS Joint Venture Investment Example

REVIEW DUE DILIGENCE AND JOINT VENTURE DOC

Each investment property that we acquire goes through our rigorous due diligence checklist to make sure the investment is a good investment that will produce the best returns possible for our investors.

Neighborhood Analysis As part of our due diligence checklist we do a neighborhood analysis on every property to make sure the properties are in good areas which will increase the quality of the tenant and our investors returns. We cannot stress enough the importance of purchasing in the correct areas and how it affects our investors' returns.

Market Value Analysis Aside from obtaining an appraisal before we ever even buy a property from a certified appraiser we pull our own comparable sales on each property when doing our up front analysis. In order for us to use comparables in our analysis they need to be within 1 mile of the property and sold within the last 6 months. Those are the lenders requirements so that is what we use to make sure we do not have any appraisal issues upon close of escrow with our buyers.

Rental & Cash Flow Analysis On every investment it is very important to analyze the expected rental value due to its effects on your net cash flow from the investment. Aside from getting rental values from various websites we also check rents around the property and have in-house property management that has experience renting in the areas we purchase properties. Typically in Memphis there is a 1% ratio of rents to the value of the property, meaning a $100,000 market value property should rent for around $1,000 per month! Memphis has one of the highest rent to price ratios in the nation.

Renovation Analysis When determining the renovation costs on each investment property we purchase we do a detailed analysis, room by room, item by item for every part of the property. We also make sure that the major items such as HVAC, roof, plumbing, and electrical are all in perfect working condition and replaced. On top of this we have a RENOVATION guarantee. If there are any problems with the renovation in the first 6 months we cover the costs.

Inspections An inspection is performed on each property we purchase and we compare the inspection report to the renovation bid to make sure all items are covered. We also have inspectors in place with a proven track record and that give us the reports with the right level of detail and pictures inside the report. We also make sure that the inspection report does not have any uninspected items present.

Pictures and Video On every property we obtain before and after pictures and video on each property to show our investors the true transformation of the property into a well oiled positive cash flow investment machine! We always have the proper documentation and backup for all of our investment.

Closing Documents Review We make sure that before the close of escrow we review all of the closing documents. This helps our investors insure that there are no excess fees or charges and that the HUD closing statement is done correctly and presented correctly for future financing.

For more on Due Diligence please see our due diligence video (link)

JOINT VENTURE INVESTMENT PROCESS Joint Venture Investment Example

OCG IMPLEMENTS INVESTMENT STRATEGY & INVESTOR SIGNS PAPERWORK

At OCG Properties we take a conservative an ethical approach to investing. If we would not put our money into the investment ourselves, we would not ask our investors to invest in it either. Typically in our joint venture deals an investor gets a percentage of the profits and the investments are structured correctly for proper performance incentives, risk mitigation and security. At this point in the process we get all of the documents reviewed and signed and give our investors ample time to review and have their attorney review each document in detail.

JOINT VENTURE INVESTMENT PROCESS Joint Venture Investment Example

OCG MANAGES INVESTMENTS

On our joint venture investment, typically OCG manages the investment for the investors so it can truly be a passive investment. We do quarterly reports to outline exactly what is happening and what the progress is on each investment.

JOINT VENTURE INVESTMENT PROCESS Joint Venture Investment Example

COLLECT PASSIVE INCOME AND BUILD WEALTH

NOW you are ready to start getting PASSIVE cash flow and a great return on investment. We know with certainty that once you have invested with us you will keep coming back for more investment properties that produce cash flow and have the right due diligence done on every investment. We make sure that our investors are taken care of and have a great investing experience.