Getting Prepared for After COVID-19

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By David Mashian

Thankfully, we now see a light at the end of this tunnel. We all have been self-quarantining, and are eager to get back to “normal” life. It will be a new normal, and things will not be where you left them before the quarantine. Even now the people in China are cautiously and slowly peeking their heads out of their homes to see if all is OK, so there will be an adjustment period for us as well.

If you are in the sales business, like I am, we need to get tooled up to get back into action and start SELLING! You are going to Create or Find New Opportunity. This situation is an opportunity. Things change, they always change, and it is best to accept and adapt. Interestingly, in Chinese, the word for “Problem” and “Opportunity” are the same word. So, this is a new opportunity, and a possibility for a better life and a better you.

WHAT TO DO?

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1) Make a TO DO list for today, and at the end of the day, make a list for the next day.

2) What should be on this list? Sales Activity is #1 – We are going to make and / or find opportunities.

WHO TO MARKET TO?

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1) People you already know and have a relationship with. DON’T PRE-JUDGE – JUST CALL!

2) Call people in your cell phone contacts. Get personal with your calls to create the opportunity. People have time on their hands and are receptive.

a. Call people you have done transactions within the past, no matter how long ago.

b. Call colleagues in the business, and past colleagues in your life. You do not know where your business is going to come from, especially given the current circumstances.

c. Friends and Family.

Implement Marketing Program

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1) Make or clean up your email list.

2) Create or update your marketing, social media, website, meet-up group, bio, brochures, flyers.

3) Start marketing by doing email blasts, post articles on social media, hosting webinars.

4) Offer something of value. Create content of value – not a sales pitch. Become viewed as a leader in your industry. Offer newsletter, helpful website links and useful webinars.

WHAT TO DO PERSONALLY:

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• Eat healthy, cook at home.

• Meditate, pray, bring calm into your life.

• Exercise, go for walks, move your body.

• Sleep well and rest when it is time to rest.

• Play Music, Paint, Enjoy your hobby.

• Talk to positive people.

 

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David Mashian

David Mashian is the founder and CEO for MoneyMac Loans. David started MoneyMac because he personally experienced and realized that small businesses and entrepreneurs could not qualify for loans under the traditional bank lending standards. MoneyMac is a nationwide lender dedicated to providing investment real estate loans for residential 1-4, multi-family, mixed-use and commercial properties. David provides asset-based investment property loans give financing for tough to qualify borrowers, including W-2 employees, self-employed entrepreneurs and small business owners. MoneyMac focuses on the property’s value and the borrower’s credit, without using bank statements or tax returns.

David is a proven real estate industry leader, who has helped many companies transform their business goals to reality. He has a high degree of real estate experience and expertise spanning from real estate finance, brokerage, sales, leasing, brokerage management, and franchising of real estate brokerage companies. Using his wide base of connections to brokers, investors and industry leaders, David has put together many deals for joint ventures, debt & equity raises, acquisitions, and real estate sales. David graduated from the University of California, Los Angeles, and teaches Real Estate Principles at the University of California, Irvine.

Interview With Bruce Norris of The Norris Group, Riverside, California

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By Christina Suter, FIBI Pasadena

I recently spoke with my industry colleague and good friend Bruce Norris about what it took for him to break through from who he was as a young man to the guru he is today. Bruce is an active investor, hard money lender, and real estate educator with over 30 years of experience. He is the founder of The Norris Group and has been involved in more than 2,000 real estate transactions as a buyer, seller, builder, and money partner. Bruce has dedicated himself to understanding the economic field in Southern California, and it shows in his work.

Photograph of Bruce Norris, courtesy of Christina Suter.

Photograph of Bruce Norris, courtesy of Christina Suter.

Bruce was married at 17, fired five times in a row, and eventually got the hang of getting a job. After reading How To Win Friends and Influence People, Bruce said he learned about avoiding the acute angle, which is finding a way to find an argument in everything. The book taught him to diffuse it and to enjoy the skill of learning to diffuse it.

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Bruce then got a job in sales, where he sold electrical supplies for six years. One day he was invited to join a man to watch his attempt to buy a house wholesale. After the house was purchased, Bruce realized his life experiences could translate into the real estate buying business. In his electrical business, Bruce sold supplies to people who already had suppliers. In real estate, he convinced people to sell their house to him because he had cash and people could close in a few days.

One of the skills Bruce has mastered is the power to close a deal. When he negotiates with a seller, he lets them know that based on his experience, things work or they don’t, so his offer leaves with him. Bruce tells sellers if they call him back the next day, he will let them know that he’s no longer interested because he wants the power to close and know he’s telling them the truth.

Bruce has earned a reputation in the industry based on his integrity. He will often spend the first 15 minutes speaking with an owner just suggesting things for them that have nothing to do with him making a profit. Bruce will ask about their situation and make recommendations that don’t always lead to him, as a cash buyer, closing the deal.

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Someone once referred a couple to go talk to him. He visited the couple for two hours. During that meeting, the husband made it clear to Bruce that he desperately wanted to move to another state, Tennessee, where he had a job waiting for him and his wife. The husband wanted such a full price without commission that he basically got in his own way, Bruce remembered.

There was an underlying desperateness to the man’s situation, so Bruce told him he could sell his house to him that night if he was willing to take less for his house. Bruce closed on their house.

Ten years later, that couple’s 21-year-old son visited his office and informed Bruce that he had been causing trouble in their house, due to his gang involvement. He told Bruce that had if he not bought their house, they wouldn’t have been able to move — and that kid would have ended up dead. He asked Bruce to teach him what he knew and how he was able to purchase his childhood home. That kid went on to open an office on Magnolia and Riverside and bought houses.

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The first foreclosure Bruce ever door-knocked was an elderly woman who had $13,000 of debt on a $64,000 house. Because he didn’t want to make the woman homeless, Bruce was able to get the lender to arrange a loan for her — largely thanks to the equity she had in the house. Therefore, she was able to keep her house.

Bruce said he wants both sides of that when he’s a buyer. He wants to be able to look across the table and if he can help the seller make the decision he’d make if he were in their situation, he also wants to be kind enough to let them know when they’re making a mistake.

I asked Bruce how he switched from real estate as a job to having freedom and creating financial stability.

“It really wasn’t a priority to me, so I kept very little inventory for rentals for the first 15 year plus years; I just flipped,” he said.

Bruce added that Jack Fullerton was influential in saying, “That’s great, but what happens if you get hurt or sick? How are you going to have income coming in?”

Bruce said he took that question to heart. While on vacation in Maui, he listened to Robert Kiyosaki’s Rich Dad, Poor Dad. Thus, he learned Kiyosaki’s four ways to make income quadrant.

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Bruce said he was always working for someone else or self-employed (the left side of the quadrant) — but on the right side of the quadrant, he was attracted to the two that involved running a business that didn’t need him and collecting checks from investments.

From that vacation on, Bruce changed the way he made income. He said he’s not self-employed because when he goes on vacation, his business can run without him. Thus, he runs a company. Bruce’s loan business, education business, and rentals all started to run without him, and he said he’s probably the least needed person at The Norris Group.

According to Bruce, it took him until late 2005 for his rental income to allow him to feel financially free. He had to think long term and at age 33, a $30,000 profit from a flip was more appealing to him than a cash flow of $200. Bruce said it took him a while to want to be methodical with the rental income and to actually fulfill that vision.

Bruce and The Norris Group can be reached at www.thenorrisgroup.com

 

Christina Suter

Christina Suter

As the founder and lead consultant of Ground Level Consulting, Christina L. Suter brings two decades of real-world experience as a serial small business owner and real estate investor. She developed her extensive financial and operational skills firsthand as she faced and overcame each difficulty that appeared along the way. As a result, she started up, managed and sold several businesses successfully, while developing an extensive real estate portfolio.

In 2002, Christina made the decision to leverage her experience into helping other small business owners and property owners through a consulting practice that works the way an entrepreneur works, dealing with the pressing problems of a business on the ground level and in real time. Since then, she has supported numerous companies throughout southern California and the western United States move beyond surviving to thriving.

Christina’s solid background and education–including a Bachelors in Business, an Associates in Teaching and a Masters in Psychology–strongly influence her work with your company as a Ground Level client. Not only does she have a keen insight into what will make or break the success of your business, but she can teach you the skills you need going forward. And she does this in a warm, supportive, non-judgmental way that is always highly respectful of your personal values.

How Can You Make Money in Residential Assisted Living?

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By Gene Guarino

 

How to make money in assisted living.

That’s what everybody wants to know. I’m going to share with you the three best ways to get started right now, making money in Residential Assisted Living. 1 – Own the real estate, lease it to an operator and make higher than market rent with a long term, low impact tenant. 2 – Lease the real estate and own and operate the business. The real estate is a good cash flow but the business is much higher. The business is taking care of the residents and charging $4,000, $5,000 or $6,000 a month or more. The net profit before taxes from that is going to be about 30 percent. You’re going to pay rent to somebody for the real estate. But the business itself can be incredibly profitable. 3 – Own the real estate AND operate the business. What I do is I own the real estate in one entity, and I own the business in a separate entity. The entity that operates the business leases the real estate from the entity that owns the real estate. You own and control both entities so it’s the best of both worlds. We own the real estate, get the tax benefits, depreciation, appreciation. The entity that owns the business, the operating entity, pays rent to the property owning entity. We have a long term tenant and we get great financing options on the real estate.

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Staffing is 24/7

You can operate your RAL home in a number of ways. You can have live in caregivers where the caregivers are there 24/7. They’re living in the home, they’re asleep at night, and they’re being paid a monthly salary. They may be responsible for five days a week. There are replacement caregivers hired for the other 2 days each week to allow them to have some time off. They also have a place to live, which is part of their compensation package.

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Use an agency.

Another way to staff your RAL home is to hire the caregivers from an agency that will provide caregivers to you. If you do this, you’re going to have to pay more than if you hired them yourself. The profit that the staffing company is making is potential profit that comes out of your pocket. It does make it easier if you hire somebody else through an agency but it is more expensive and you have less control over the caregivers. An agency would be the ones that hire those people, train those people and so on.

Contract for care.

There is also way number three, and that would be you bring those residents in the home and they’re paying you to live there, then they contract out for the care to a 3rd party that provides the staffing and care directly. So they may be paying you $2,000 a month to live in that space, but they’re paying $3,000 a month to a caregiver. There are lots of ways to make money with assisted living. The key is to get started.

Be sure to subscribe to our iTunes podcast to listen on the go! [CLICK HERE]

gene

Gene Guarino
Founder/CEO
Residential Assisted Living Academy™

Gene is the President, CEO & Founder of RALAcademy.com. Gene has over 30 years experience in real estate investing and business. Today, Gene is focused on just one thing… investing in the mega-trend of senior assisted housing. He has trained thousands of investors/entrepreneurs throughout the United States how to invest in and operate residential assisted living homes. For over 25 years he has been educating people on the strategies of successful investing, business and self-employment. He now specializes in helping others take advantage of this mega-trend opportunity.

 

Think Differently to Uncover Huge Hidden Profits

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By Karen A. Walker

Nobel Prize-winner Albert von Szent-Gyorgy once said that “discovery consists of seeing what everybody has seen and thinking what nobody has thought.” It’s a description that captures what sets LuxHomePro, its processes and its co-founders apart from others. In a nutshell, they think differently about luxury vacation rental property.

Founding partners Jerry Conti and Dave Bynum were introduced by a mutual friend. At the time, Jerry was looking for a fresh, innovative and lucrative opportunity to market.

Dave had just completed an eight-year, remarkably innovative and profitable lead generation program he had developed and managed for a number of major banks from 2001-2008. With that project finished, Dave was also looking for something new that he could really embrace and enjoy as much as he had enjoyed the lead-gen project.

Keep an open mind: Unexpected connections

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In truth, nothing innovative happens in a vacuum, and rarely at a convenient time.

As it turns out, Dave was in the midst of planned chaos on the day Jerry called to follow up. That chaos included a camera crew and live taping session with Dean Graziosi. Just days earlier, someone else previously unknown to Dave had tracked him down in an effort to become a silent financial partner on any project Dave had in mind. At the time, Dave didn’t have anything in mind.

Dave kept an open mind to see where it all would lead.

Something clicked in the conversations with Jerry. Their synergy, diverse areas of expertise, shared ethics of openness and trust, serving others, and creating win-win-win opportunities that also allowed for big, ethical profits resulted in the launch of LuxHomePro at the end of 2017.

Culling from his years of experience fixing and flipping homes and short-term rentals, Dave applied his knowledge to what he saw as a new emerging trend: an increasing demand by travelers to rent luxury homes, rather than stay in hotels. AirBNB, VRBO and similar platforms were beginning to pay attention to the trend as well, which opened up even more opportunities for the untapped win-win-win Dave recognized.

“I see opportunities that people don’t see,” said Dave. “I can align the dots enough to get it going and then work through any failures to fix things and make it work.”

And that’s what happened.

Further fine-tuning was needed and the business was in full operation by April 2018, now offering about six seminars a year, with turn-key systems and a variety of optional, more intense training levels to participants.

“I have always led my life by being the quiet guy,” confesses Dave. “When I’m at a meeting or in a crowd, I tend to read the room, figure it out, plant a seed and then listen. I spend more time listening than talking. I find you learn more from others that way.”

In contrast, Jerry is a front and center, get onboard and let’s have fun on the journey kind of person. The two co-founders complement each other wonderfully, and they forged a bond of mutual respect and trust, which makes for engaging, in-depth and hands-on, achievement-oriented learning for their students.

Keep it Real, Keep it Simple

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“For us, it always has to be a win-win-win,” underscores Dave. “It’s a whole lot better if everyone is upfront and transparent. When you have a problem, get it out in the open so we can solve it together and move forward. Otherwise it can fester, people sneak around behind others’ backs and it’s just a waste of time and energy. Keep it real! In every negotiation, every relationship, keep it open and upfront.”

“One of the most exciting things for me,” Dave adds, “is when I finally put together all the pieces of a problem or project and it works! It’s exciting for me when people say yes, believe in us, take action on what they learn, and then achieve the same or better results. It’s exciting because it helps change other people’s lives for the better. That matters a lot to Jerry and to me.”

Core Concept

For those who’ve not yet experienced the LuxHomePro opportunity, the core concept is brilliant.

There are basically three components:
▪ Luxury vacation renters. Offer dream housing options to those seeking luxury vacation home accommodations.

▪ Luxury home owners. Offer owners of qualified luxury homes an option to sell at a good price and also to earn significant revenue prior to selling, without any work on their part and without having to wait many months and even years to sell their high-end luxury home.

▪ LuxHomePro Student “Connectors.” Earn high profits, on a consistent basis, following a proven-successful strategy and easy-to-follow templates and systems, without the need to own anything or have good credit.

It’s essential, of course, that the person connecting all parties (“the connector”) follow the system correctly. Everything is laid out for seminar attendees, including how to properly market a property, how to develop attractive pricing, how to upgrade for vacation renters and how to manage the operation efficiently and profitably.

Leave out—or even worse, cut corners—on any one of these components and the promised, sure-fire success is in jeopardy.

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For example, rent a luxury vacation rental home from Dave and you’re sure to find such amenities as a hot tub, in-home games, pool or foosball table, baby-sitting and personal chef upgrade options and super-discounted access to local golf club or other luxury amenities. You can count on your experience in one of his homes to be truly luxurious and of more value than that for which you paid. Not cheap, but over-the-top value. That’s what LuxHomePro trains its students to provide.

So, if the LuxHomePro plan is followed as laid out, and if it’s managed correctly, it’s a beautiful thing all around—amazing profits for you within 4-6 months or so, amazing experience for the renter, and amazing profits for the home-owner. A win-win-win.

Not to mention, a no questions asked, money-back guarantee.

What others say

A broker in Michigan who had done fix and flips for years and recently got into short term rentals said he found himself struggling with the short term rentals. “I tried do it the traditional way like you see on YouTube,” he explained “and really struggled with it. I met Dave and he helped me with it, looked at the resources I had to work with and took it from there. He’s thorough. He’s patient and he starts working with you at wherever you are starting out. He can take it to where you want to go.”

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Shelly Clayton from Scottsdale echoes the Michigan broker. Shelly raves about how Dave’s system took her from 4% booking rate, which translated into two bookings a year (one of them even cancelled) to a 96% booking rate.

That’s a small segment of real-world, first-hand feedback from those who implemented the LuxHomePro training and systems. And all of it is music to the co-founders’ ears!

For Jerry and Dave, it’s all about helping to change other people’s lives for the better.

Looking forward

Jerry and Dave recently introduced a super simplified option in which they’ll act as a partner for select students who have financial limitations, but a strong desire to participate in the vacation rental industry.

To learn more about all of LuxHomePro’s offerings, go to www.LuxHomePro.com

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Top Five Take-Aways from LuxHomePro Seminars:

1. Keen eye. Walk away knowing exactly how to identify profitable luxury rental properties.

2. Love what you do. Find your own niche or niches in the industry from which you’ll be able to master and profit year after year.

3. Only win-win-win. Learn the secrets to setting up deals and negotiations on the basis of a win-win-win where no one gets a bad deal.

4. Positive negotiation. Learn how to successfully negotiate with homeowners so they will jump onto your side and will want to work directly with you.

5. Systems and Automation. Learn which systems to put into place to automate your business for maximum profits and efficiency.

Stratton Equities: Hard Money Loans Versus Fix & Flip Loans

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New Jersey based mortgage lender, Stratton Equities, reviews Hard Money and Fix & Flip Loans Programs

Regardless of the type of investor you are, Stratton Equities (www.strattonequities.com) has an array of loan programs that are designed to meet all your mortgage needs. Our background in real estate, mortgage lending, and finance, puts our expertise and experience far above our competitors. We bring something dynamic to the table, and we help you close your loans quickly, efficiently, and professionally.

Hard Money and Fix & Flip Loans are among the most popular programs that investors utilize for their real estate investments. Although, they are two different programs, many in and outside the industry believe them to be the same loan…but this is the furthest thing from the truth.

Hard Money Loans

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A true Hard Money Loan (www.strattonequities.com/hardmoneyloanprograms) is an asset-based loan, which means the financing is based on the Loan to Value (LTV) of the Asset. Unlike the Fix and Flip loan, it doesn’t go through full underwriting and there’s no minimum FICO requirement for the borrower, as it doesn’t have many guidelines and criteria.

This type of loan doesn’t have as many restrictions as one might think considering that it’s just money, so no more having to worry about bankruptcies, foreclosures, collections, etc.

Due to the lack of guidelines and underwriting, a true Hard Money Loan is generally capped at 65% LTV or less. For example, let’s say you have a home worth $1M, if you want $500K against it (50% LTV), you’re able to receive the money within 1-2 weeks (from day of application), commonly as a first lean position – because it’s just money. It’s normally in the form of a Bridge Loan, which is short term financing in a period of 12-24 months.

One of the reasons why Hard Money Loans are for investment properties ONLY, is due to the high cost regulations and predatory lending – you can’t put such high interest rates and cost on an owner occupied property.

In certain states, there are non-judicial foreclosure laws, which allow a Hard Money lender to get their money back quickly if the borrow defaults on the mortgage.

These foreclosure laws make the lender more comfortable doing high-risk loans, usually the money is not sold on the secondary market – the lender holds the note, they don’t sell the paper.

Fix & Flip Loans

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Fix & Flip Loans (www.strattonequities.com/fixandflip)are also asset-based loans, however they utilize more underwriting guidelines and criteria. While Hard Money Loans focus solely on the asset, Fix & Flip loans look at both the asset and the borrower.

The reason why people confuse Hard Money Loans with Fix & Flip Loans, are because both the loan and the laws are very similar – they are both private money to an investment property.

Virtually all fix & flip and hard money loans are funded by hedge funds, the money comes from the same place, but the underwriting is different.

Contrary to Hard Money Loans, Fix & Flip Loans are usually sold on the secondary market and goes through a full underwriting with tighter guidelines. For instance, depending on the lender, Fix & Flip loans have a minimum FICO requirement. Additionally, the borrower can’t have late payments, foreclosure, judgments, or bankruptcy on their credit for 24-36 months.

Furthermore, a Fix & Flip loan is a rehab loan, a loan that you utilize to acquire a property and then receive the funds to rehab that property in short term financing (12-18 months).

Stratton Equities

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As the leading Nationwide Direct Hard Money & NON-QM Lender, our reliable and professional team aims to help all real estate investors succeed. Our programs support projects like hard money, fix & flip, stated income commercial loans, blanket loans, and more! In 4 simple steps, you can apply for your mortgage and hopefully get approved quickly!

For more information on our services, please contact us today at (800) 962-6613 or visit our website at www.strattonequities.com

 

Meet Michael Mikhail

Michael Mikhail is the Founder and CEO of Stratton Equities, the nation’s leading hard moneylender to national real estate investors, with the largest variety of mortgage loans and programs nationwide.

Having launched Stratton Equities in early 2017, Michael has always been an entrepreneur and innovator in the real estate market, purchasing his first home at 19.

A serial entrepreneur with a foresight for business opportunities, Michael had a slew of small businesses prior to launching Stratton Equities. One of his most prolific ventures was a car wash connected to a gym he was affiliated with in Florida during 2001­2002 while attending college.

It wasn’t until he graduated from Florida State University with a degree in Business, that he officially joined the mortgage industry in 2003 and decided to travel to explore his options globally.

After travelling to 19 countries in 5 years, Michael knew two things; he wanted to start his own business and launch it in the United States. He knew that moving back to the states was the best place he could start something small and grow it into something infinite.

In 2017, Michael noticed how the mortgage industry had transformed after the regulations presented from 2008­2012, and knew it was time to set out something on his own, thus creating Stratton Equities.

Under Michael’s leadership, Stratton Equities has grown into one of the biggest leaders in the Mortgage and Real Estate industry across genres and platforms.

What NOT to do When Building Your Residential Assisted Living Team

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By Gene Guarino

 

Should you do everything yourself?

You as an entrepreneur can do anything that you want to do. You’re capable. You absolutely can do anything you want. However just because you can do something yourself doesn’t mean you should. There is no ceiling, there is no lack of opportunity. On the other hand, if I was to do it all by myself, I wouldn’t have made it nearly as far as I have. So when you look at your own life and you look at your own opportunities and capabilities, you really have to decide, is this something that you can do and should do, or something you can do, but you choose not to. So let’s talk about the team.

The importance of having a team to be successful

So let’s talk about surrounding ourselves with the right people, a team. What I think a lot of people are afraid of, especially when it comes to something like assisted living. You’ve never done it before. It’s new to you. So the best thing you can possibly do is surround yourself with a team of people that have done it before, who are not only experienced, but they know what to do, and more importantly what not to do. And they’re willing to teach you. Surround yourself with a team of people that have something that you don’t have, that are willing to contribute something that you don’t contribute. A team of others that have skills that you don’t have, that have maybe the time that you don’t have. Because as soon as you say to yourself, well I’m the best, or I’m the only, or I am the one that must, you’re kind of defeating the whole purpose. I’d rather work with somebody instead of thinking of them as competition.

We all need help sometimes

If you want to know something, ask somebody else. If you don’t ask, you don’t get. As a matter of fact, that’s Biblical, ask and you shall receive. So the concept of asking for help, reaching out beyond yourself, it’s not a matter of pride. It’s not a matter of profit. It’s a matter of let’s just get real and be reasonable. You need a team of people around you. I’m just offering you help. If you want, I’m willing to teach you and show you how. Not just say, I want everything you’ve got, but I’m not going to ask you any questions. Not going to learn from you. Not going to get a team of people around me. I’m just gonna. Figure it out on my own.

We want you to succeed

If you want to do something, surround yourself with a team of people that have done what you want to do, that is where you want to go, that are willing to help you get there. Not pulling you down, But the people who want you to be successful. Who is willing to help, willing to share, willing to be a part of that success? Because frankly, when it’s all said and done, doesn’t matter how many houses you have or how much money you have in the bank, it’s the people and the relationships. Those things are magical and they last forever.

Be sure to subscribe to our iTunes podcast to listen on the go! [CLICK HERE]

gene

Gene Guarino
Founder/CEO
Residential Assisted Living Academy™

Gene is the President, CEO & Founder of RALAcademy.com. Gene has over 30 years experience in real estate investing and business. Today, Gene is focused on just one thing… investing in the mega-trend of senior assisted housing. He has trained thousands of investors/entrepreneurs throughout the United States how to invest in and operate residential assisted living homes. For over 25 years he has been educating people on the strategies of successful investing, business and self-employment. He now specializes in helping others take advantage of this mega-trend opportunity.

 

How These Co-Investors Continue Delivering High Returns Through Yet Another Recession

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By Tim Houghten, Staff Writer

While some are hiding out and putting their heads in the sand amidst current events, Adam Levine and Daniel Edrei are among the few who are not only thriving, but growing as the market cycles and creates new opportunities.

Real Estate In 2020

The US real estate market kicked off big at the beginning of 2020. New record deals were made and many wealthy individuals and corporations went on a buying spree.

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Interest rates were low, capital was the most plentiful it had been since 2006, and the bulls were running wild.

While experienced investors had forecast a new recession coming for years and were already prepared, the majority had their blinders on. Most were not ready for how fast the coronavirus pandemic hit the US economy.

Among the immediate impacts were disruption in the building material supply chain, bans on renting vacation properties, and talks of moratoriums on foreclosures. Quarantine and stay at home orders brought conditions not seen since in 80 years, since World War II. Perhaps even since the Spanish Flu 100 years ago.

Fortunately, we, and the real estate world have never been better equipped to weather something like this. Consider some in the past had to hide out in closets and between the walls for years just to survive with their lives. Now quarantine looks like luxury homes, flat screen TVs, 5G internet, Netflix, Amazon Prime on demand, and more than enough time to make endless memes.

These Moments That Distinguish New Leaders & Create Massive Wealth

Daniel and Adam

Via Zoom we caught up with Adam Levine, Managing Partner of Levine Capital Management, and Daniel Edrei, Managing Partner of TCS Anika Homes.

It didn’t matter that one of them was in Philadelphia, another in New Jersey and our reporter in Florida. Those who are excited about this moment are finding ways to leap on the opportunities and keep on doing business.

Zoom just happens to be one of the tools they are using to keep communicating with investors, acquire deals, and to keep operating and signing new leases. Even during a complete lockdown.

It may prove to be one of the shortest recessions in recent history, but however long it lasts, it is just another turn in the cycle for experienced real estate investors.

It is in these moments that legends like John D. Rockefeller, Warren Buffett and Sam Zell are made. It is when there can be great gains in family wealth that lasts for generations.

Tragedy, Transition, Triage & Creating An Upward Trajectory For Your Finances

There is no question that the coronavirus and its personal and economic impact come with a lot of tragedy.

It is also time to look forward. Those who don’t will be reeling from this moment for a decade or more, while others are enjoying their best lives ever.

Daniel & Adam looking at computer

Hopefully, like Adam and Daniel you were already transitioning your investment strategies, asset allocation and portfolios long before COVID-19 reared its ugly head. If not, it is high time to triage your money. What do you need to sell before it is too late to save? What can you save with some extra care and attention? What will thrive and have immunity? Where do you put your energy and resources?

Since 2012 Adam Levine has been involved in well over 1,000 transactions, and has focused his funds on capital preservation and high returns in recession resilient, risk adjusted investments.

Daniel Edrei has been investing in real estate for over 25 years. He’s been through the dot com bust, 2008 and now the coronavirus pandemic. He is no stranger to recessions and how to invest through them. After 2008 he took stock of his debt investments loans he made. He realized that his higher LTV loans actually out-performed others where they had invested in teams with the strongest sponsors and operators. So, he began engaging in ‘dequity’ deals where they would share in the equity. Then moved into equity investing.

Seeing the coming recession Daniel said he had already been transitioning his funds and assets from luxury to workforce housing, well before it hit. They already have around 3,000 units under management, and are now well positioned to become the next Blackstone. The large multi-billion dollar hedge fund famous for creating Invitation Homes and B2RFinance, and buying tens of thousands of single family rentals in 2008.

Investing For Success

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As of our Zoom interview, Adam and Daniel said they are actively investing, deploying capital, securing new leases with tenants and making acquisitions.

They continue to look for portfolios of 1- to 100 plus units to buy, and encourage those holding them to request a competitive bid from their latest fund. Today, they are mostly focused on row homes and workforce housing in Philadelphia. Though they may expand to cover Washington DC, Camden, NJ, Baltimore, MD and other surrounding areas.

While other investment providers have continuously been reducing the value of their offerings and yields over the past few years, Daniel says they are actually expecting to be able to deliver even better returns ahead. They already promote targeted returns of 15% to 24% (IRR). Access to better deals and better prices in 2020 may boost that even further.

What Is Co-Investing?

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Now on the third fund for TCS Anika Homes, Daniel’s firm is sponsoring access to high performing income property portfolios. His direct LPs are typically sophisticated investors committing at least $200,000.

Desiring to make these investment opportunities more accessible without compromising on service, Adam and Levine Capital have partnered to co-invest in this fund. By investing through Levine Capital, accredited individual investors can still participate, but with minimum investments of just $10,000 to $20,000. This enables them to test the waters before committing even more capital, after experiencing the results for themselves.

This is an exciting opportunity. Especially for all those who thought they missed out on 2008, and the chance to create great wealth. Few expected it to come so soon. Just don’t sleep on the chance to invest while the market is ripe.

The Keys To Navigating The Market In Times Like This

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1. Be Prepared, Move Quickly

Ideally investors were prepared in advance. Most weren’t. There is still a chance to shift asset allocation and reposition for success. Just don’t waste any more time.

2. Proven Relationships

While there are many seemingly great opportunities out there, the truth is that new entrants to real estate investing can be at a severe disadvantage if they are going the DIY route. It is going to be super hard to test out new contractors and property managers and build a trusted brand in these times. Fortunately, TCS Anika Homes was well ahead of this with a vertically integrated and owned ecosystem incorporating all facets of the business from brokerage to management and construction.

3. Partner With Veterans Who Have Been Through It Before

Even Adam says that despite graduating with a business degree, and a Masters in property management, theory and book knowledge only goes so far. He made his own greatest leaps and was able to learn the most and invest safely by partnering with others who have been through the trenches of previous cycles. This is in a large part driving what he is offering others today. Instead of packaging and selling his knowledge in a guru-like course or training program, he walks investors through his deals and co-invests side by side with them.

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Find out more about these funds, recession resilient investments, and their founders at LevineCapital.com and www.TCSAnikaHomes.com.

U.S. Single-Family Rental Home Market Poised for Near-Term Real Estate Growth Opportunities, According to SVN | SFRhub Advisors

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By Ruth Seigel

Abrupt global economic downturn caused by COVID-19 leads investors to seek refuge and diversification
in opportunistic CRE asset classes growth, risk-stabilization and yield.

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Phoenix, AZ – (April 16, 2020) – As the world grapples to tame the coronavirus pandemic and overturn the economic effects of this unprecedented event, commercial real estate (CRE) investors are monitoring all asset class financial positions to lessen short-term portfolio risk while augmenting investments for long-term growth. SVN | SFRhub Advisors, along with industry experts, predict ongoing consumer demand for housing will position single-family residential (SFR) rentals as an investment portfolio standout. A CRE brokerage firm, SVN | SFRhub Advisors, dedicated solely to SFR/BFR (Build-for-Rent) portfolios recorded a 650% uptick in investment activity since mid-March 2020 for SFR/BFR portfolios on their technology platform, SFRhub.com, averaging 10,000+ listed homes.

Recent data from John Burns Real Estate Consulting (JBREC) outlines CRE sectors most likely to be affected following the pandemic, especially in the short-term, are hospitality, retail and office/co-working. Conversely, JBREC states SFR (while not unscathed in the short-term) should be positioned for faster market recovery and a better long-term play. Housing rental defaults will prove painful in the short-term, but the low supply of newly built rental homes in most markets, and capital seeking safety, yield and inflation hedge, should help SFR recover earlier than other residential real estate asset classes.

Jeff Cline

Jeff Cline

“Investors have reaped financial advantages of a 10-year bullish marketplace, notably the past few years with SFR portfolios, and the newer BFR market,” said Jeff Cline, executive director and principal of SVN | SFRhub Advisors. “For the first time in U.S. history, rental household growth outpaced U.S. home ownership.” He added, “Looking ahead, consumer economic, lifestyle, and work-at-home popularity indicate global investors’ near and long-term outlook for capital growth and income opportunities in single-family detached homes for rent is better than it’s been for several years.”

BFR communities encompass single-family homes built from the ground up specifically for renters and not home owners. These homes help to fulfill the vast housing need and rental shortage occurring across the U.S. According to JBREC, recently surveyed BFR projects had a very strong 97% stabilized occupancy rate prior to the COVID-19 pandemic.

U.S. homebuilders may turn to REITS, private equity and individual investors to purchase completed or near completed single-family communities for rental investment should the new home buyer market continues to retract. “For the first time, we now have several private capital group clients with tens of billions of dollars to specifically invest in the BFR space,” said Michael Finch, executive vice president of SVN | SFRhub Advisors.

Michael Finch

Michael Finch

Demand from millennials and older adults/retirees has destigmatized renting and touted SFRs’ benefits like increased space, yards and amenities representative of living in a single-family detached home. Skyrocketing unemployment, job uncertainty, and hefty student debt loans imply the SFR/BFR market should remain strong among millennials as home ownership moves farther out in time and remote working becomes more popular.

Cline notes, “SFR/BFR investors’ main concerns are rent revenue and occupancy. In the short-term, unemployment may impact rent rather than occupancy issues. As the economy recovers, demand for SFR/BFR will be a favorite among alternative investors with capital on the sidelines seeking refuge and stock market diversification for growth and income.”

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About SVN | SFRhub Advisors

SVN | SFRhub Advisors, based in Phoenix, is an independently owned and operated SVN® office. SVN comprises over 200 offices with 1,600 advisors. SVN | SFRhub Advisors is the only national single-family residential (SFR) & Build-for-Rent (BFR) dedicated brokerage that introduced the first-to-market digital commercial real estate fully transactional platform, SFRhub.com. SFRhub.com is the only SFR/BFR industry data provider with clean and verified data. SVN | SFRhub Advisors currently features a pipeline of over $2 billion SFR/BFR investment portfolios consisting of five or more homes and is also a member of the Forbes® Real Estate Council.

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Ruth Seigel
President – RS Marketing & Assoc.
[email protected]
602 320 4182

Rentals 2 Retirement: Bulletproofing your retirement with real estate

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SPECIAL SPONSORED POST

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Webinar on Wednesday, 4/29 at 6pm PST
Rentals 2 Retirement
Bulletproofing Your Retirement with Real Estate

Join us for this informative webinar where we will show you how to build a safe, secure and predictable stream of income/retirement through conservative real estate investing.

As the CoronaVirus works its way through our communities there are two things you can be sure of: first, we will survive this Pandemic and come back stronger than ever (that’s what we Americans do) and secondly, as we return to the “new normal”, preparing for retirement and the future will be more important than ever.

Whether you are looking to replace your current income and build equity, diversify your stock portfolio by investing in real estate or create a stream of income to supplement your retirement, this webinar will show you how to get there!

Since 2009 Invest 1 Properties has been one of the nation’s leading turn-key investment property providers. Focusing on the dynamic Kansas City market with over 900 properties sold, we have the systems in place to assure your success.

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Our process is simple:
-We find the property for you
-We fully renovate the property
-We partner with local property management to place a qualified tenant and manage the property
-You just COLLECT THE CHECK

This is truly “hands-off” turn-key investing. We even include a rent guarantee and renovation warranty on every property we sell!

So join us to learn more about this incredible real estate investing opportunity and why we consider the Kansas City market a true hidden gem that has produced outstanding results for our clients over the last 11+ years.

Here are just a few of the reasons why:
-6.9% appreciation in 2019
-3.1% unemployment (Jan 2020), well below the national average
-Low cost of living and population growth is increasing year over year
-10%+ average cap rates
-In house financing available with no tax returns or W2’s, no bank qualifying

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The Myths in Residential Assisted Living – Part 3

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By Gene Guarino

Can I do this hands-off?

You can absolutely operate a Residential Assisted Living home and business in a hands-off manner. Hands-on means you’re in the home every day. You’re watching the residents and the caregivers on a regular daily basis. You’re overseeing, maybe even micromanaging the manager or maybe even being so hands on that you are the manager. I don’t do it that way. I own the business. I don’t want it to own me, so my job is to hire a manager. The manager’s job is to hire the caregivers and then to find residents for the home and manage that relationship with the family. So if we do it properly, if we want to be hands-off, our job is to manage the manager. Can you do it hands off? Absolutely, there is no right or wrong way in those two options.

Do I have to do it in the area where I live?

Another myth that I want to reveal is, I have to do it in my own backyard. I want to encourage you to live where you want to live, but work and have your business where the numbers make sense. The reality is, if I have 10 people in my RAL home and they’re paying $5,000 a month, we can make a lot of money. But if I’m in a home where I can’t fit 10 people and those people can only pay half that amount, that will negatively affect my profitability. Half the number of people paying 1/2 the amount is not a good business model. So can you do it long distance? Yes. But the key to success is the right location and the right demographics. Next is having the right team in place.

Who do I hire to run the business if I am hands-off?

The manager is critical to your team and your success. Finding staff to work in your home or work for you or for your manager, that’s easy to do. Finding the right people is the key. It’s not just finding somebody who can fill the space. You are looking for those high-quality people who love what they do. The type of person we’re talking about is typically not a mercenary, they’re not just there to make a dollar. They’re there because they want to be there. They love to work with seniors and this is a part of who they are, “their calling” if you will. What should your role be? Really your job, your function, should be to find other people who can do it as good and better than you can and then to manage those people. You can definitely be hands off. Let them do what they do best, while you do what you do best. There’s no reason to do this just to create a job for yourself.

Be sure to subscribe to our iTunes podcast to listen on the go! [CLICK HERE]

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Gene Guarino
Founder/CEO
Residential Assisted Living Academy™

Gene is the President, CEO & Founder of RALAcademy.com. Gene has over 30 years experience in real estate investing and business. Today, Gene is focused on just one thing… investing in the mega-trend of senior assisted housing. He has trained thousands of investors/entrepreneurs throughout the United States how to invest in and operate residential assisted living homes. For over 25 years he has been educating people on the strategies of successful investing, business and self-employment. He now specializes in helping others take advantage of this mega-trend opportunity.