$1 Million

Investment
BY SAAD MUHAMMAD SAEED
Intro:

Avg Cost of But Financial

1 Million is
Living freedom is
not enough.
$39000 per. achievable.
My Strategy

• Need Income generating properties.

• Fix and Flip
Income
Generating
Properties
• SFP Low risk

• Industrial

• Office & Retail

• MFP
High Risk
• Hospitality
Why Multi-family Property?

• MFP Properties are designed for cash flow

• Easier Financing

• Less Competition

• House Hacking (FHA Loan for small property)

Where to find a • MLS/AGENT - Priority

• Driving for Deals

Good deal? • Craigslist/FB Marketplace

Financing the Deal

GET PRE-APPROVAL CONVENTIONAL LOAN OR FHA OR

PARTNERSHIPS OR SELLER
FINANCING
Analyzing
a Real
Deal
• 5 Unit Low rise Apt Complex

• Newly Renovated

• $1.75 mil sales price

• $1.15 Mil appraisal value

• Fully Furnished

• Urban Housing
 Data for Income-Approach for Valuation

per room.
Cash Projections
Things to consider

• Location, Location, Location

• Condition

• Type of Ownership

• Fixtures

• Declarations, By-laws, Pending Legal Action

• Not REDLINED area by lender/banks.

• Buyer’s Due Diligence

What would be a good Mortgage
deal on this?
• 20-25 years amortizing

• 7-10 years Adjustable rate

• 3-5 % Interest

• Balloon Payment in 10-15 years.

Fix & Flip.
Type of
Property?
- S I N G L E FA M I LY
HOMES
Buy 1-2 Single Family Houses on
cash.
• Why Cash?

• No hassle of mortgage process.

• Always beneficial in the short and long

term.(https://www.investopedia.com/articles/investing/111116/getting-mortgage-vs-paying-cash-investment-
properties.asp)
• I can mortgage the house to buyer.

• I can take out a loan against it in the future.

• Easier for flipping – Average Time to sell house is less than 30 days.
(https://www.zillow.com/sellers-guide/average-time-to-sell-a-house/)
How to value Single Family
Homes?
• Comparable Sales Approach: Look at recent sales of Properties around the same/similar location.

• Always talk to an expert Realtor. ITS FREE.

• Average Value of House in the area – Construction, Capital, Soft, and Profit Costs =Maximum Allowable
Offer to buy property to FIX & FLIP in the area.

• Average time to Fix and Flip Property is 7-8 months so this is time consuming and would be my main
source of income.