The RAMP 360 Workbook

The RAMP 360 Workbook Real Estate Mentoring and Property Partnership ProgramModule 1

Welcome to the Ramp 360 ProgramI want to take this opportunity to thank you for making the decision to join the RAMP 360 program. It will truly be a life changing event for you. Please take advantage of all of the information and tools that will be provided for you. Complete all of the assignments and any pre work for the course. You can submit your assignments to tbailey@corporatecapitalllc.comIf you have any questions or concerns contact me at 214 793 4831. Tunita BaileyThe Money Lady

Module 1 Real Estate FundamentalsHow it all started: My first investment What is Real Estate Investing? The RAMP 360 Cash Flow System Determine your Business Plan for Investing Establishing a new Business Entity Building on a Solid Personal Foundation- Reviewing your credit and restoring to A+ Six Sources of Money for Investing Module 1 Action Steps

How it all startedMy first investment property

I Made a Decision.

The Decision that Changed My Life

I went from a Struggling Mortgage BankerHustling Mortgage BrokerThriving Investor

3 bedroom 2 Bath 2 Car Garage Home in Da000Sold for $75,000Profit: $ 40,0003 bedroom 2 Bath 2 Car Garage Home in Dallas, TexasPurchased for $20,000 Rehabbed $10,000Sold for $70,000Profit: $ 40,000We went from Rags ..to Riches Instantly!My First Investment Property

The one decision that literally changed my life!4$40,000 Pay Day..to Riches Instantly!

What is Real Estate Investing? Real estate investing involves the purchase of real estate for profit. Profits are accumulated slowly by renting out properties in a cash flow method, or are generally improved and resold for a capital gain. Real estate investors may wholesale properties as a means to make profits.

The Ramp 360 Cash Flow System

The RAMP 360 Cash Flow SystemClean, Cash Out Refinance and Rent OutRehab and SellAssign ContractLease Option$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$PROFIT$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$Duplicate the Above

Real Estate FundamentalsHow to Determine your Business Plan for Investing

Determine Your Business Plan for Investing

To become a successful investor in the residential or commercial property arena, you must determine your goals and objectives for investing.

Most real estate investors neglect this step and at the end of the investment venture it often becomes a nightmare.

A carefully organized business plan would allow you the opportunity to do the following:1. Leave your job within 12 months2. Break the cycle of debt; commit to being free from debt within 12 months3. Create a minimum of 2 Million in assets within two years4. Develop multiple streams of income

Example of Investing GoalsI want to own 10 properties by the end of the year I would like to rent the properties to individuals that are on the government housing programs. I will purchase property that have a minimum of 3 bedrooms, 2 baths, and 2 car garagesI will finance the property with traditional financing and obtain the best possible rates for at least 5 years. I will hire a professional management firm to manage and lease the propertiesI will invest the residual income from the properties into an interest bearing account. I will hire a mentor or coach to assure a higher degree of accuracy in completing my goals and objectives

Lets Discuss Some of Your Plans

List at least 1 of your plans for the next 30 days!

Establishing a New Business EntityEstablish a business name that will encompass all of your real estate businessDetermine the type of business setup: Sole Proprietor, Corporation, L.L. C or PartnershipObtain an LLC operating agreement for your new companyObtain a commercial checking accountOrder business cards for your new company

Why LLC?I recommend starting your business as an LLC. It offers the most protection against personal loss. It can be established quickly depending on your overall strategy and objectives for your business. It should include an Operating AgreementYou should consult the advice of an attorney and CPA to determine the best option for you.

Establishing Your Business NameThe name is the most important aspect of any new business. I will usually assist many of my clients in determining the best name for their investing business. It should be a name that tells the world what you do yet tells the banks you are a viable company and will adhere to all of the guidelines of becoming a new business owner. Many of the banks will not lend to companies that are listed as ABC Real Estate Investors. Companies that have real estate in the title are somehow perceived as risky companies. They will lend to ABC Construction & Property Partners. This name indicates more stability and less risk

Whats Your Business Name?

List and discuss your business names

Building on a Solid Personal FoundationReviewing your credit and restoring to A+

Would you a Build a House on Rock or Sand?The RockGood CreditStable IncomeAssets SandNo Income or Unstable Bad Credit/No CreditNo Assets

Steps to Disputing Your CreditStep 1: Collect copies of your credit report from the major credit bureausStep 2: Review your credit report watching closely for errors (items that do not belong to you). Dispute any errors on your reports immediately with the credit bureaus. Any errors or inaccurate information will be deleted.Step 3: Once you dispute the negative information, you will receive a copy of your report from the credit bureau, showing the items that were removed and the items that were verified as accurate. The dispute method of removing negative information from your credit file can improve your credit rating

Go to creditchecktotal.com to obtain a copy of your report

How to Improve Your CreditStep 1: Pay all of your bills on time. Late payments (payments that are 30 days late or more) have a negative effect on your credit rating. Step 2: Reduce the number of credit cards you carry. Write to your creditors to request that they close your accounts and report this status change to all three credit-reporting agencies. Step 3: Avoid bankruptcies, tax liens (a lien for not paying state or federal income taxes or property taxes) and collections. A bankruptcy stays on your credit report for up to 10 years. Collection accounts and paid tax liens stay on for seven years, and unpaid tax liens will haunt you forever.

Step 4: Request in writing that your creditors reduce the credit limits on your accounts to lower your amount of available credit. The total amount of available credit is considered by lenders even if you owe nothing. Step 5: Ask a family member or friend to co-sign on a small loan or credit card to help you re-establish credit. Make your payments on time. Step 6: Get a secured credit card to help reestablish your credit. You will have to keep a designated amount of money in an account that will be sufficient to cover your charges. Make payments on time. Step 7: Get a yearly copy of your credit report to catch any errors

Six Sources of Money for InvestingPersonal Savings or 401kEquity in Your Home or Investment PropertyCredit CardsFriends and RelativesBanksHard Money Loans

Joint Venture AgreementWe Fund You Find

Module 1RAMP 360 Partner Action StepsAction #1 Develop and Submit Your Real Estate Business Plan for the next 12 months. Action #2 Identify a bank friendly name for your new business and setup the LLC along with the operating agreement for your company. Action #3 Obtain a copy of your credit report with scores for all three bureaus. If scores are 700+ Good Job. If below see instructions to begin the process of correcting the credit and building a solid personal foundation.

Action #4 Identify one of the six sources of capital and submit proof of funds i.e. bank statement. Action #5 Create a joint venture agreement with the RAMP 360 Partnership Program for the WE FUND You Find and submit your signed agreement.