Maximilian Wolf: Real Estate Coaching

Entrepreneur, real estate coach and self-taught – Maximilian Wolf has fulfilled his dream of financial freedom through real estate through hard work and self-employment. In 2007 he enters the real estate business, resulting in the digital consultancy founded in 2020.

In addition to digital management consulting, he is nowadays a successful managing director of two other companies. The company OPM has the goal to find and project real estate objects. Bricks & Mortar GmbH is a subsidiary of OPM. The brokerage company acquires and sells the developed projects of OPM.

With an extensive team and over 16 years of experience, he shares his knowledge with real estate agents and brokers through coaching.

That’s what makes Maximilian Wolf stand out:

• Managing director of several companies
• Over 16 years experience
• Self-taught – brings personal experience

Tip. Real estate app including coaching

Online Coaching (App) – Passive income with real estate as an investment, but how to start? What is really important? In the Real Estate Guru App the #1 Real Estate Coaching in an App in the world is waiting for you! Learn how real estate investment works step by step in 10 lessons that build on each other and over 50 individual trainings. In the training you will learn how to buy, how to find cheap real estate (acquisition and off market), as well as financing and much more.

• Real Estate Coaching (App)
• Real estate app

Offers, Coachings & Lectures

Whether you are a beginner or already a successful real estate investor, Maximilian Wolf’s coaching programs bring everyone to their goal with an individually tailored strategy.

Anyone who wants to trade in real estate and later build up their own portfolio is in the right place at the Real Estate Trading Masterclass. There is also a separate coaching program for real estate agents, which includes top strategies for property acquisition and sales.

In addition, Maximilian Wolf will be appearing at a number of events and will be available to his clients at the “Immokongress”.

This is what Maximilian Wolf offers:

• Coaching for real estate agents and brokers
• Individually tailored “timetables
• Speeches at real estate events

Real Estate Coaching

The topic of real estate coaching has piqued your interest? More selection, information and tips can be found in our real estate coaching overview!

Continue reading here:

• Real Estate Coaching

The pro rata sale of house & apartment explains

A partial sale of a property is a great way to release a portion of your real estate equity and continue to retain sole right of occupancy and use. In a partial sale, up to half of your property is sold to a partial sale provider. You receive the purchase price immediately. The usufructuary right is secured in the land register and in return you pay a monthly usage fee to the partial buyer.

This brings with it a host of advantages. Let’s take a closer look at them.

Advantages of the partial sale

Whether selling part of your home privately or through a professional part sale provider, you retain your financial independence, stay in your familiar surroundings and can also benefit from additional cash flow.

The advantages of the partial sale at a glance:

• Improved liquidity
• No need to move out of the property
• Sole usufructuary right to the property
• Possibility to continue using the property or rent it out
• Repurchase by seller or heirs possible

More financial freedom through instant payout

One of the biggest advantages of a partial real estate sale is that you have immediate cash without having to sell the property outright. Thus, you can quickly and easily get money to meet financial obligations, make investments or fulfill a lifelong desire.

Sole usufructuary right to the property

As a partial seller, you get the right to live in your home and use it as you wish. You can use the property for your own use and have family members or caregivers move in. In addition, the usufruct right allows you to rent out your property.

Wealth accumulation through renting & appreciation

A partial real estate sale can also be a way to contribute to wealth accumulation by renting out the property. By renting out the property, regular rental income can be generated, which can serve as additional income.

In the event of an increase in the value of the property, you will also benefit, for example if you decide to sell your property completely after 10 years.

Sellers & heirs benefit

Not only you as the seller benefit from a partial sale, but also your heirs. Since your liquidity is increased, the family is relieved financially. After your death, the heirs are also granted a priority right of repurchase of the sold share. If your heirs decide to sell the entire property, the partial buyer takes over the settlement and your heirs do not have to worry about anything.

There are also a few things to consider when partial selling. So what are the partial sale disadvantages?

Disadvantages of the partial sale

Compared to other models, such as the life annuity, you remain the owner of the property in the partial sale. Due to the registered usufructuary right, you can generate additional cash flow through the property, but at the same time this also comes with some costs.

User fee: Monthly payments to partial purchasers

As already mentioned, as usufructuary you have to pay a monthly usage fee to the buyer. The amount of the user fee depends on various factors, such as the current economic situation and the purchase price paid out. Since the amount of the user fee differs depending on the partial sale provider, it is advisable to compare the different partial sale companies in order to find the best possible offer for you.

Costs: Surveyor, notary & Co.

In addition to the monthly usage fee, a real estate partial sale may also come with some additional costs and fees. One of the most important cost factors is the preparation of the partial sale contract, which must be certified by a notary. There are also costs for an appraiser who determines the current value of the property. Which fees you have to pay yourself, and which costs are borne by the partial buyer, also varies from provider to provider.

You may incur these costs as a partial seller:

• User fee
• Expert’s fee
• Land register & notary fees
• Maintenance costs
• Administrative expenses
• Implementation costs
• Speculation tax, if applicable

Therefore, it is advisable to find out in advance about the expected costs to facilitate long-term financial planning.

Requirements: For whom is a partial sale worthwhile?

So, after looking at the advantages and disadvantages, the question becomes:

For whom is a partial sale of real estate worthwhile?

When a pro rata sale makes sense and when it does not depends on your property as well as on your personal circumstances. In most cases, the purchase price of the sold portion should not be less than 100,000 euros. Since a maximum of 50% of the property is purchased in a partial sale, only properties with a minimum market value of 200,000 euros are usually considered. Since the partial sale of real estate is a real estate annuity model, the offer is usually also aimed more at seniors.

You should have these prerequisites:

• Value of the property: at least 200,000 euros
• Payout: at least 100,000 euros
• Minimum age of the seller
• Ideally: completely / largely paid off property

The partial sale is most interesting for owners who need liquidity but do not want to give up their real estate assets completely and would like the property to remain in the family until the heirs later decide what to do with the property – an option that a life annuity and a reverse mortgage do not offer.

Conclusion: A comparison of providers is worthwhile

Overall, the partial sale of real estate offers an attractive opportunity for property owners to quickly and easily obtain liquidity without having to sell the entire property. Especially for older people, the partial sale can be a good option to achieve financial freedom. In addition, renting out the remaining part of the property or increasing its value can help build wealth. Since the conditions differ, you should take enough time in advance to compare the different partial sale providers with each other to find the best offer for you.

What is Fix and Flip? Success & Risk

Fix & Flip describes a strategy of real estate trading in which a property is bought cheaply, then upgraded cost-efficiently through refurbishment or renovation measures, and subsequently sold for a higher sales price. The profit is the difference between the selling price and the purchase price including the revaluation costs.

Fix & flip is a risky variant of real estate trading, since the goal is a timely sale and not a long-term return.

Fix & Flip enables a short-term increase in equity.

Fix & Flip in a nutshell:

• Real estate trading strategy
• Buy, Upgrade & Sell
• Gain profit through sale

What are the advantages and disadvantages of the strategy?

Advantages of Fix & Flip

The Fix & Flip strategy offers several advantages, especially for beginners. It allows you to make quick profits, especially when real estate markets are rising and to enter the real estate market with a small initial investment. You also gain experience-based knowledge about the real estate market and renovation processes.

The advantages summarized:

• Quick, short-term profits
• Low initial investment
• Experience in real estate trading and appreciation

Disadvantages of Fix & Flip

However, the strategy also brings disadvantages. For example, you always have a high risk, especially in case of unforeseen costs or delays during the renovation. Fix & Flip is also a time-consuming process, especially when it comes to finding suitable properties, monitoring the upgrade and marketing the property.

You need expertise and experience in real estate trading and renovation to effectively make a profit. And competition in the market is increasingly complicating the chances to sell properties.

The disadvantages at a glance:

• High risk due to costs and delays
• Time-consuming process of search and marketing
• Efficient upgrading as a prerequisite
• Increasing competition makes trading more difficult

Let’s look again in detail at the three main steps of the Fix & Flip strategy.

Fix & Flip property purchase: Market analysis and financing

The first step for your Fix and Flip plan is to find a suitable property. You must pay attention to the condition and location of the property. The condition of the property will determine the costs incurred and the duration of the upgrade.

The location plays a more extensive role.

If the property is in a busy location, the purchase price is higher, but you have a higher demand. If the property is in a less favorable location, the purchase price will be lower, but the sale may be delayed because the demand for these properties is lower.

It is therefore important to conduct a detailed market analysis and check properties on site. This way, several properties can be compared specifically according to your criteria and the right property for your fix and flip plan can be found.

The criteria for a Fix & Flip property at a glance:

• Real estate market analysis & comparison
• Checking the condition of the property
• Find object in an optimal location

Once a suitable property has been found, it must be financed.

Fix & Flip Financing: Banks & Risk Appetite

How you finance your Fix & Flip strategy is up to you. In most cases, you will have to rely on the support of external lenders. Banks are a good choice. Which bank will finance your Fix & Flip plan depends on their risk appetite. Since Fix & Flip is associated with high risks, some banks decide against financing Fix & Flip.

You can find out everything about Fix & Flip financing from our partners:

• Fix & Flip Financing

After the successful acquisition of the property follows the upgrading.

Fix and flip property upgrade: refurbish & modernize

The efficient upgrading of the property plays the crucial role in shaping the profit margin. Many Fix & Flip properties require renovation or refurbishment. These improve the quality of life for the residents and also increase the sales price. You should have already determined which measures are explicitly required during the substance check.

The important thing in upgrading is planning.

Proper planning of costs and time will allow you to select the necessary measures and include additional delay.

You can read about how exactly to upgrade your property for your fix and flip plan in this post:

• Fix and flip property upgrade

After the upgrade, the property must eventually be sold.

Fix and flip property sale: Preparation & Valuation

For a successful fix & flip strategy, the sale plays just as crucial a role as the purchase and appreciation of the property. The sale is decisive in the end about the real profit you get from the whole effort. In order to sell the property it must be offered. For this, valuations and price estimates are necessary.

Architects or craftsmen can already evaluate the property during the upgrading measures. This provides you with a clear assessment for the sale. In addition, the early assessment enables you to produce the advertisements and announcements promptly. Thus, interested parties and demand can be found at an early stage.

The sale of the property again at a glance:

• Sales as a decisive factor of profit
• For the sale the property must be offered
• Evaluation by architects & craftsmen
• Early placement of advertisements and announcements

In addition to the simple principles of selling, the Fix & Flip strategy also includes other factors. You can find out what these are in the following detailed guide:

• Fix & Flip property for sale

Conclusion. Fix & Flip to increase capital

The Fix & Flip allows you to either enter the real estate business or continue to grow your capital as an experienced real estate investor. Keep in mind the high risk that the method entails of losing time and profits. Also, the fix & flip is a short-term process. You are using real estate as a sales property, not as a long term income property. This in turn allows after a successful “flip” of a property to directly start the next project.

For a more extensive overview and depth on the entire Fix & Flip, visit our partner. Here you will learn more about the tax burdens, the control of the building fabric, as well as the exact cost accounting for the entire plan.

• Fix & Flip Real Estate

CryptoPunks – Example

Currently the biggest hype when it comes to NFT, the CryptoPunks.

• CryptoPunks
• CryptoPunks @ OpenSea

Screenshot: OpenSea / CryptoPunks

Bored Ape Yacht Club – Example

The first collection, now there are other offshoots, the Bored Ape Yacht Club.

• Bored Ape Yacht Club
• Bored Ape Yacht Club @ OpenSea

Screenshot: OpenSea / Bored Apes Yacht Club

Real estate – example

Here is our small demo example “Lukinski”:

• Lukinski
• Lukinski @ OpenSea

Screenshot: OpenSea / Lukinski

What is an NFT?

The abbreviation NFT stands for “Non-fungible Token” and translates as “non-replaceable token”.

Quickly explained: Until now, digital works could be copied at will. NFTs document the history of a digital work. This makes the history from creation through all transactions visible to everyone. Similar to physical works of art, the authenticity can be confirmed. The success of NFT art is demonstrated by examples such as the “5,000 Days” project, which was auctioned at Christies for $69 million.

For documentation, an NFT uses a blockchain, often Ethereum. The blockchain then documents all transactions, as described from publication, across all transactions.

Learn everything about NFT here:

• NFT: Digital Art

Rental yield: definition & calculation

Should you decide on a yield property for your real estate investment, the question quickly arises:

Is this property worthwhile as an investment?

After all, buying real estate does not only entail immense costs at the beginning. There are also ongoing operating costs to be paid later on during the rental period. So to make sure that this expense is worthwhile, there is the rental yield. In other words, the rental yield puts your investment in relation to the potential rental income.

Formula for gross rental yield: percentage

To calculate the rental yield, the cold rent (without operating costs) and the purchase price of the property must be put into relation. The complete formula is:

Annual net income / investment * 100 = rental yield

The result is then in percent. The higher the percentage, the better the return. And the better the return, the more you earn from the property. As a real estate investor, you should ideally build up wealth again directly so that you can then invest it in further real estate as a capital investment.

Yield & location: A, B & C location

The decisive factor for the rental yield is the location of your property. Is the property in an A, B or C location? What about the macro and micro location? And is it a yield or investment property? Depending on the location, the respective property types have different rental yields.

A-location: Frankfurt & Munich

Typical for A-locations are low yields and a steady increase in value. Over the long term, therefore, rental yields rise here just as the value of the property itself does. The best examples of this are top A locations such as Munich and Frankfurt:

• Munich Ø Yield ~ 3
• Frankfurt Ø Yield ~ 4

B-location: Dresden & Nuremberg

In principle, B locations also have good returns. In addition, there has also been a significant increase in value here. The ideal rental yield in B locations is between 5 and 6 percent:

• Dresden Ø Yield ~ 5
• Nuremberg Ø Yield ~ 6

C-location: Wuppertal, Chemnitz, Krefeld

Gross rental yields are highest in C locations. On the other hand, there is no increase in value and the risk of vacancy is higher. Here are some examples:

• Wuppertal Ø Yield ~ 7
• Chemnitz Ø Yield ~ 8
• Krefeld Ø Yield ~10

Conclusion: What is the minimum rental yield?

The amount of the rental yield is therefore calculated according to a fixed formula and varies depending on the location and type of property. In principle, the higher the yield, the more profit is made. And the better the location, the lower the yield. Thus, yield properties are worthwhile above all in B and C locations, while you should choose properties in A locations above all for investment properties.

Learn more about rental yield here:

• Rental yield: Return on real estate (external)

If you want to learn even more on the subject of buying a property, whether owner-occupied or capital investment, numerous articles, guides on the subject of rented vs unrented, as well as checklists, all free and 24 hours online available, with us!

Apartment, house, apartment building, everything for real estate beginners!

Now new on Immobilien-Erfahrung.de:

• Buy property: learn – external