Business Plans For Opening An Assisted Living Home

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By Gene Guarino

Why do I need a Business Plan?

The number one reason to have a business plan is for you, so that you have clarity of vision of who you are, what you’re doing and where you’re going.

why-1780726_1280The second reason, is to help raise capital. No private investor or a lender is going to give you the money you need without a business plan. You need to be able to show to other people that you know what you’re doing and where you’re going. You need to know where it starts, where we break even, where we’re profitable, what’s my reserve and all of the details. You want to give them a clear vision so they can buy into or lend to you.

What are the 5 Ps?

People. Me, you, whoever is inside and operating within this business. The first thing a lender is going to look at is, who are the people involved? What experience do they have that is related to what they’re giving the money for? What do you do now that relates to what you’re raising the capital for? And if you don’t, who else can you put inside your Business Plan as an advisor? A team of people is better than one person.

meeting-2284501_1280Product. In your business plan you have to lay it out. What is it that you’re doing? Is it a product, a service, Is it whatever? You need to explain that clearly. With senior housing we’ve got it down to a T. We know exactly what it is.

Position. Are you the most expensive and that’s what makes you better than everybody else? Or are you the least expensive, which makes you available to everybody and everybody, however you don’t want to be the cheapest because then you’re always battling on price, and to be at the top? There’s very few clients or customers at the top. The best position is to be a high quality, somewhere above the middle. That’s what we call the sweet spot.

Projections. If you’re buying an existing business, there’s a past, a present, and there’s the projections into the future. The projections are, this is where we’re at and this is where we’re going. I’m going to encourage you to be conservative. Whatever you think it is, reduce it a little bit more. Don’t go overboard, make it more conservative to give you some breathing room so that you can under promise and over deliver when it’s all done.

door-1590024_1280Plan. An exit plan is one of the key elements that most people miss. That lender doesn’t want to know how much money they’re gonna make. They need to know their money is safe. They need to know there is a purpose. A two to five year exit plan means their money is committed for two to five years and our plan is to either sell or refinance once that business is stabilized. And that investor wants to know that they’re going to eventually get out of that deal. So two to five years on an exit plan is that key.

You can also subscribe to our iTunes for on the go listening:
https://itunes.apple.com/us/podcast/assisted-living-networks-podcast/id1360517721?mt=2

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.

Millennials and Short-Term Rentals

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By Holly Lynn

Millennials or Generation Y are a demographic that range in birth dates between 1980 and 1996. They are becoming an increasing group that is opting for short-term rentals instead of purchasing homes. Especially the younger members of the millennial group.

There are many reasons why this is a growing trend among young people. One reason is that millennials are staving off parenthood until later in life if at all. This brings about change in the family dynamic. There are more single people now than ever. With the decision to go solo, a millennial might choose to go on more vacations or work outside of their community. Short-term rentals are being favored by millennials for business as well.

living-room-3539587_1280Short-term renting provides patrons with access to full kitchens, larger living spaces, and a home away from home feeling. More often than not, these rentals are easier on the pocketbook than traditional hotel stays. Hotels may offer more services for additional upcharges, but more millennials prefer accommodations that offer much more than a set of towels and bathroom coffee.

According to a report published in 2016 by Airbnb, millennials when asked the question “How likely are you to consider staying in a home as opposed to a hotel, hostel, etc on future trips?” They answered 67%. This makes sense when you factor in that millennials are spending their money on traveling and vacation in lieu of purchasing homes.

girl-4530426_1280Some of the decisions to travel may be due to the “Instagram lifestyle.” Everywhere you turn there is a post showing somebody living their best life on a beach somewhere. Or videos panning far and away places in New Zealand or the south of France. This would inspire anyone to want to vacation or work abroad. In addition, these travelers often partner with friends. Which makes staying in a short-term rental a wiser, financial decision.

Many companies are now offering their employees short-term rentals as housing. There are sites that provide a platform for traveling nurses, medical and business professionals. This tends to be a more cost-efficient way for companies to provide housing in lieu of hotels.

There are some millennials who choose to purchase homes just for short-term renting. The idea of roommates it’s still a viable option. Many people take on roommates to offset mortgage payments. Now they have the option to rent their spare rooms to travelers instead of permanent renters. This is a great way to make more money by charging by the night, rather than by the month.

airbnb-3399753_1280The very idea of Airbnb was founded by young men trying to make an extra buck by renting out an air mattress in the living room. These entrepreneurs are in fact Generation Y. So the fact that the leading platform for short-term rentals was founded by millennials is a good indication that the market is here to stay.

For more information on how I can assist you with your short-term rental, private lending, or hard money loans, contact me at: www.hollylynn.com or [email protected]

holly-lynn-square

Holly Lynn

Experienced Owner with a demonstrated history of working in the real estate industry. Skilled in Team Building, Television, Leadership, Marketing, and Digital Marketing. Strong business development professional who graduated from San Francisco State University, College of Business.

The Queen of Capital, Holly Lynn specializes in helping people with their real estate needs. She is a creative and results-driven resource who can help investors at every level.

Her authentic, personal relationships with both lenders and investors coupled with her vision, work ethic and endless desire to make the deal work position her as a sought-after, leader in the industry.

Holly Lynn can help you with hard money, private financing and other funding for your investments and projects.

She is a self-taught deal maker who has always had a keen business sense. She works with investors and syndication across the board who are looking for real estate investments that produce passive income streams.

She built B.A.M.F into the single most recognized name that is designed to build strong relationships and invest in multifamily projects to create massive cash flow and wealth. B.A.M.F monthly meetups in San Francisco, San Mateo, Fremont, San Jose and those conducted through webinars are open for everyone. As the multifamily properties continue to be an investment megatrend, She gives everyone an opportunity to learn about multifamily property investments and opportunities that would only be otherwise available for top dealers and those who met the qualifications by SEC. But through B.A.M.F, you can meet with experts and deal organizers who can provide you with great investment options.

Holly’s reputation has been earned one transaction at a time with no substitute for hard work and honesty. Take advantage of her deep proven experience in the real estate and investment market by joining her events and mixers. Mixers that are organized by B.A.M.F is sought after by reputable individuals in the investment and finance field. It is your chance to learn and grow.

“I have always believed that your money is waiting for you, but you have to keep yourself open to receiving it.”

– Holly Lynn –

This Is What Will Really Cause The Next Housing Crash…

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By Fuquan Bilal

Whether you believe we are already in a correction or not, here’s the one thing that may really be responsible for tipping the housing market over the edge.

It’s sellers asking too much.

Who’s to Blame for the Housing Crash?

There were lots of people, groups and organizations blamed for the housing bubble and crash in 2006-2008.

crisis-2061342_1280At first they tried to blame investors and house flippers. At least until the government needed them to take on all the distressed properties, and actually loosened lending regulations to sell and finance more houses to investors.

Appraisers, too, were blamed for overinflating values, often in collusion with banks. Banks were committing all types of fraud. And then forced insurance and foreclosure fraud really put the icing on the cake.

To top it off, interest rates through 2006 were on the rise, which really stalled the market. Especially in tandem with cutting back on lending and ending easy to get loans. Something which the government has just done again with the FHA, after years of subprime type lending.

All of the things are happening again now. However, probably most significantly of all, is that property owners ran into problems when they owed too much, cash flow started slowing, and people stopped buying because prices just didn’t make sense anymore. The only people they made sense for were speculative flippers, and eventually they hit a ceiling too.

Uninformed & Unrealistic Sellers

All you have to do is hop on to Zillow or Realtor.com for a few minutes, and you’ll see plenty of examples of owners and agents listing for as much as double as the value estimates right alongside their asking prices. Often this is right next to a graph clearly showing a recent steep dive in that property’s value. One property in Florida shows it was recently bought for $21,000, is valued around $70,000, but the seller is asking $124,000 for it. There are plenty of other public listings out there that you can see have been vacant and listed for a year. The sellers have barely budged in lowering their asking prices.

chart-1585601_1280For easy math, take a house that may be worth $100,000, but the seller and realtor have been demanding $120,000. After a year, they finally fold and reduce the price to $100,000. Only now it may only be worth $70,000. So it sits on the market for another year. Finally, out of desperation they lower the price to $70,000, but now no one wants to pay more than $35,000 for it, because of the market and economy. They are completely stuck. They may have put in more than the property is now worth just to hold it all that time. They may owe more than anyone is willing to pay right now. They are financially tapped out and frustrated. It gets foreclosed on, and they lose everything.

There are probably several hundred thousand sellers in this situation right now, at least. Millions if you count all phases of the journey we just outlined.

shopping-1724299_1280It could easily be avoided by pricing right. Of course, in a few years this same property will probably be worth $150,000 or more, and could be generating $1,000 a month in rents in the meantime. Most just won’t be able to manage through it though.

So, we’re ending up with a lot of new deal flow coming through. Again, we’ll see local governments and banks flush with distressed mortgage notes and REOs for qualified funds to acquire at discounts. We’re also seeing investors selling off portfolios of hundreds of units to cash out.

It’s a shame that some sellers will have to go through this journey. Yet, there is great opportunity for investors who have the connections to acquire right priced assets and know how to manage them.

Investment Opportunities

Find out more about investing in secured debt and real estate, go to NNG Capital Fund

Fuquan

Fuquan Bilal

Fuquan Bilal founded NNG in 2012 with the principal mission of capitalizing on the growing supply of mortgage notes in the interbank marketplace. Mr .Bilal utilizes his 17 years of residential and commercial real estate success to identify real estate opportunities and capitalize on them. To date, he has successfully managed three private mortgage note funds that primarily invest in singlefamily performing and non­performing mortgage notes. His financial acumen and proprietary set of investment criteria enable him to purchase underperforming real estate assets at a deep discount of face and market values, thereby increasing the value of the assets. This, coupled with his ability to maximize the use of leverage, enables him to build strong, secured portfolios with solid passive income flows.

REAL ESTATE: USING INFLATION TO YOUR ADVANTAGE

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By Glenn Mananeng

Inflation is an increase in prices for goods and services. In other words, as time goes by, your buying power becomes less compared to the previous years with the same amount of money. Picture yourself in the 90s and you have around $1 million dollars. Seems like a hefty amount of money especially if you’re thinking of settling in for retirement. Fast forward to the year 2019 and that same amount of money wouldn’t be as lucrative to save you up for the next few years to come. Inflation is something that has proven to be detrimental for most people. If we’re talking about investments though, a good investor can turn the negative face of inflation into something positive – and use it to their advantage. Strategy Properties is here to guide new and seasoned investors on how to deal with inflation and that they should actually welcome it.

Understanding Inflation

statistics-227173_1280A deep dive into inflation shows that it’s more than just an increase in prices. Reduction of interest rates, changes in demographics, and an increase in the rate at which income is generated are several factors that come into play. Like what we’ve mentioned, the oversimplified result of it is an increase in the price of goods and services such as food, rent, real estate prices, and stocks. What doesn’t rise with inflation though is your money. To put it simply, your cash is worth less as time goes by, which is why holding it for long periods of time isn’t a good strategy when it comes to investing and inflation kicks in.

Real estate has been a popular choice for investors because the rising prices increase the value of a property over time. As the price escalates, the rental payment of tenants can also increase which would benefit property owners and landlords. Inflation is inevitable. It can either be at a high rate, a steady rate, or something in between. The best way to win against inflation is by using it to your advantage.

Why real estate is the best investment

key-2114455_1280Properties are more immune when it comes to recession. To put this into detail, let’s take stock market investing as an example. The stock market can offer big returns in a predominantly strong economy but becomes very risky when it dips down to a recession. Your investments, no matter how strong they are, can easily shift on a volatile market. In real estate, you become less prone to a loss when recession hits since properties are generally almost always in demand for housing or other purposes.

Real estate investment trusts (REIT) are companies that own and operate income-producing properties. Publicly traded REITs can give you the upper hand in the long-run. It also helps you broaden your investment choices with less capital involved. Some may argue that they can suffer losses due to inflation but the liquidity of these investments can even things out over time in terms of profits.

If done right, your investments will give you steady cash flow. The rental income from your tenants can go straight to paying down the loan principal, which accounts for most of the value in conventional loans compared to other investments that can’t offer a high enough return during inflation. Aside from that, the appreciation of your property increases in value especially when improvements have been made to it.

money-1428587_1280Choosing the right location for your investment property shouldn’t be underestimated too. Settling on an area that is in a strong and economically resilient market is more likely to achieve inflation offsetting returns rather than one with a non-diverse market with weak demand.

Choosing the right location for your investment property shouldn’t be underestimated too. Settling on an area that is in a strong and economically resilient market is more likely to achieve inflation offsetting returns rather than one with a non-diverse market with weak demand.

Strategy Properties is a team comprised of professionals with extensive experience and knowledge when it comes to real estate investment and all the ways to hedge against inflation. Make the smart choice by partnering with us and contact us through (734)224-5454 or sending an email at [email protected]. Let us take care of everything while you sit back and enjoy the fruits of your hard-earned investment.

Hindsight Is 2020: What To Learn From The Last Decade In Real Estate

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By Fuquan Bilal

Hindsight is always 20/20. Now looking back over the past decade, everything that has happened in real estate is pretty obvious. What can we take from it as we move into 2020 and the next decade?

Market Recap: 2009-2019

graph-3033203_1280Even though some cities were already being hit hard by the Great Recession and housing crisis by 2005, some didn’t feel it, and it wasn’t publicly admitted until 2008. Some places still didn’t really see all of the foreclosures coming through the pipe until 2011 due to long processing times and banks trying to hide this shadow inventory and their losses. Later years of back data, including three years worth from the National Association of Realtors, would show just how bad things were.

Yet, by 2011, some markets were already turning around again. That also took some time to roll out around the country.

Few people were spared during 2008. It not only rocked people financially but mentally as well. Today, maybe 10% or fewer of those in real estate were in the business prior to 2008.

The Last Real Estate Boom

money-2724245_1280So, from 2011 until 2018 we saw a fresh boom in the US real estate market. This follows the historical pattern of phases of the market running an average of 7 to 15 years.

The big funds definitely helped fuel the fire by buying up huge pools of single family rental properties. Mortgage lenders shifted to making money easier to get for real estate investors than for regular home buyers. The regulations that created this environment really haven’t changed much. Although we have seen the FHA and government agencies begin to back away from their own subprime style loans in the last couple of years, meaning those with virtually no down payments, easy income underwriting and low credit scores.

The experienced and creative investors found ways to acquire assets at great discounts, and have done it at great scale.

However, over the past few years we’ve also seen a whole new wave of brand new Realtors, TV personalities and investors jump into the game. They’ve kept bidding up asset prices, and inventory has become increasingly more challenging to get. At least at numbers which really make sense. We’ve seen the markets that burst the worst in 2008 once again double or triple in prices.

We’ve had rumors of a new recession and warnings the stock market has been at least 60% over priced for years. Most investors seem to have become totally numb to these warnings though.

The Current Landscape

app-2941689_1280As a whole the economy has been very strong. Yet, we’ve also seen some massive IPOs that have failed terribly, and more concerns about tech companies that are losing billions of dollars. Upwork, WeWork, and Uber are just some of them. The recent exit of Google’s cofounders has also raised some eyebrows.

The retail home market appears to have already hit a new plateau in some markets. Rents and retail house prices are just unaffordable, except for speculative flippers in many markets. Even the biggest luxury brands have been ditching Manhattan’s famous retail rows. There are double digit negative trends out there in some niches and submarkets.

On the upside there are still some affordable cities and channels for obtaining discounts, but investors have to look for them.

There is still a huge appetite for US mortgage debt from around the world, to the tune of tens and hundreds of billions of dollars.

The Next Decade

binoculars-1015267_1280It’s logical to expect the next decade to be much like the last one. At some point there will need to be some type of correction. Then there will be a surge in acquiring distressed assets again.

There are opportunities to cash out, buy right, hold and make great returns in real estate. Providing investors invest by the numbers, and don’t fool themselves by buying into the hype.

Some people will always make money. You just may have to be more disciplined and creative over the next five years than during the past five years.

Investment Opportunities

Find out more about investing in secured debt and real estate, go to NNG Capital Fund

Fuquan

Fuquan Bilal

Fuquan Bilal founded NNG in 2012 with the principal mission of capitalizing on the growing supply of mortgage notes in the interbank marketplace. Mr .Bilal utilizes his 17 years of residential and commercial real estate success to identify real estate opportunities and capitalize on them. To date, he has successfully managed three private mortgage note funds that primarily invest in singlefamily performing and non­performing mortgage notes. His financial acumen and proprietary set of investment criteria enable him to purchase underperforming real estate assets at a deep discount of face and market values, thereby increasing the value of the assets. This, coupled with his ability to maximize the use of leverage, enables him to build strong, secured portfolios with solid passive income flows.

Senior Housing – Big Box vs A Real “Home”

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By Gene Guarino

What would you rather live in… a “home” or a warehouse? When it comes to senior housing facilities, there are generally two types: Big Box facilities and Residential Assisted Living Homes.

In general they offer the same type of service, but how they deliver the housing or a “home” experience is very different. The first difference you’ll probably notice is the feel of the facilities. A Big box facility feels like a hotel or an apartment complex. They try really hard to make it “feel” like a home, but it is difficult to get that homey feel in a facility designed for hundreds of people to live there.

house-961401_1280

Residential assisted living is done in an actual single family home. It is achieved by converting single-family homes into a cozy place for a a group of seniors to live and receive care.

Another obvious difference is size. Big box facilities are big while residential assisted living homes are small. This difference in size plays a big part in the caregiver to resident ratio. That is the number of direct care staff compared to residents. In a RAL home, an average ratio is 10 residents to 2 caregivers. This is very reasonable, as caregivers can give ample time and attention to the residents. In a big box facility, the ration easily reach 20 or more residents to 1 caregiver. Ratios like this make it difficult for caregivers in bigger facilities to give each resident the full time that they need.

elders-401296_1280

Big box facilities aren’t all bad. One of their advantages is that there are more residents to interact with. These facilities also tend to be able to offer a wider array of activities for the residents. With a facility of 200 seniors, it is easy to find a group of people that want to knit together, watch a movie together, or maybe play bridge together. Big box homes don’t offer all the advantages though. Smaller homes offer more freedom to residents and their families. It is easier to arrange for a day out with your loved one at a small home. It is also much easier to stop by, with no need to sign in or show I.D. before you see mom or dad like in a big box facility.

A major difference is the cost of staying at these facilities. Smaller facilities generally charge a flat rate for residents care and housing. That cost will be determined up front based on the resident’s level of care and the actual room they stay in. Big box facilities charge a monthly rate and bill additional services a la carte style. The room rates will vary, depending on size and privacy and then they charge more based on what the resident’s level of care is.

location-3324959_1280The location of these facilities are quite different as well. Small homes are generally in residential neighborhoods. In fact, there might be one in your neighborhood and you didn’t even realize it! Big box facilities are large commercial buildings surrounded by a parking lot. These can be located near a neighborhood, but they are generally located in the busier areas or even the business districts of cities. The differences are clear when it comes to big box facilities and residential assisted living homes. One feels institutional, one is a home.

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.

WANNA KNOW WHAT MAKES A HOUSE UNSELLABLE?

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By Glenn Mananeng

So, you’ve finally decided to sell your house. You prep up the property, do all of the paperwork, get it listed and think that you’re good to go, only to find nobody’s buying your house. Bummer right? Well, you have to back up a bit and think why; is there something wrong with your home? If you’re still clueless as to why your home is not selling, worry not. SellUsHomes has got you covered, and we’re here to help you identify some common reasons why houses just don’t seem to sell.

Undesirable location

navigation-2049643_1280You’ve probably heard that location is everything when it comes to real estate. This can be the biggest obstacle in selling your property. The problem is, you cannot just conveniently move your house. If you are close to an airport, busy road, or highway, this might make it harder to sell your home. Even if your potential buyers are attracted to the house itself, they might not want to deal with these issues.

A bad location is basically up to preference. It depends on your target audience whether they’re families with kids or maybe the elderly. So the question is, can this be corrected? Absolutely!

Remember, you’re selling your property, not the neighborhood surrounding it. Focus on things that you have control over. Focus on the positive, and unique features. Intensify your curb appeal and make it stand out from others. Try to be more open to your buyers and offer concessions such as paying a part of the closing costs or credit towards repairs and improvements. Most investors find that reducing the sales price of the house even by just a bit increases the chances of closing the deal.

Outdated and too personal decor

tiffany-531993_1280This doesn’t just apply to the decor, this covers the fixtures as well. Think of the most likely buyer. If you’re planning to target a much younger audience, you won’t have any luck with your Tiffany lamps and your avocado green shag carpets. You’re offering a home, not a trip back to the 80’s.

We won’t question you with your interior design choices, but consider what your buyers want. If you do some research on how properties that sell fast look like, you’d find that the majority of them have interiors that are catered towards the current trend. A little touch-up can bump the value of your property much higher than you’d expect. Updating your light fixtures, installing a nice clean kitchen top, or even doing a brand new paint job can benefit you a lot. Keeping the decor neutral, reducing clutter and reducing personal items are very helpful.

Maintenance issues

plumber-228010_1280Obvious neglected maintenance and repairs will ward off potential buyers. Buyers want a stress-free purchase. Not a lot of people will be willing to deal with the hassle of repairing a leaky ceiling or addressing plumbing issues. Address needed repairs before you list your home for sale.

Any health hazards that your house might bring to your buyers is not good as well. Dampness and humidity of the interiors can invite molds to form on your furniture and create condensation on your windows. Buyers who have very minimal immunity to these can cause allergies and even serious health problems. Keep a balanced humidity level by providing good ventilation and check the electrical and plumbing systems.

Checking your utilities, and having them serviced, can add assurance that they are working well, and add confidence to a buyer.

Lack of natural light

Most architectural designs promote the use of natural light. This is a major turn-on for a lot of buyers. Nobody wants to live in a house that resembles a cave. Lighting up the interior can give the illusion that the living space looks larger than it normally does. Plus, people feel better when there is more light and brightness.

indoors-3096629_1280If you have the extra cash to install skylights then go for it. However, there are ways to achieve this without little to no expense at all. If you move any furniture that blocks any source of natural light, that would greatly help. You can change the curtains (or remove them) into something with a lighter or transparent material. The introduction or use of glass panels allow light to pass through. Also, opt for a much lighter color scheme for the interiors to compliment any natural light.

Weak broadband service (or lack thereof)

In today’s world, most buyers expect to have a good, stable and strong internet connection. People dedicate most of their time online. Without this amenity in your house, you might be in for longer waiting time.

internet-3471739_1280You don’t necessarily need to have it installed before you place your property for sale. Most telecommunication companies can inform you all about the signal strength and speed of the broadband service. Once your buyers know that it’s possible for the property to have internet connection, you just increased your chances of closing the deal.

Sprucing up your house and making a little effort can be more than enough to increase your chances of a successful sale. However, most sellers find a really hard time in prepping their property before placing it on the market. Don’t be discouraged, because that’s what our team at SellUsHomes is here for.

We realize the difficulties of selling a house can discourage a lot of first-time sellers. That’s why we strive to make the sale as seamless as possible. To learn more, contact us at (734) 224-5947 or email us at [email protected]

Who Is Real Estate Fund Investing For?

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By Fuquan Bilal

Who is investing in real estate funds best for?

There are many ways to invest in real estate. You can try to fix and flip houses DIY style, do the Airbnb thing, rent multifamily apartments to students, and buy mortgage notes. Then there is simply investing in the real estate funds that do these things. Who is fund invest ideal for compared to these other strategies?

‘Slackers’

Being a hands on landlord, remodeling homes with your own hands and doing workouts with delinquent mortgage borrowers is real work. It may be more profitable than any other job you can do, but it is hard work. If you are drawn to invest in real estate for passive income and are not a big fan of taking big risks, then investing through a fund is probably for you.

Let someone else who has already gone through all the trial and error and years of trial by fire, and who has built teams to handle all the different parts of the business do it for you. You invest, relax and just enjoy the rewards. It’s not being lazy, just smart.

Busy Executives & High Income Earners

There are many workers out there right now who are making great money at jobs that keep them really busy. You might be a doctor, tech worker at Google, or a pilot. You get paid well, but work a lot. You know you can’t bet everything on your one employer, but don’t have time to take on another job or master direct real estate investing for yourself on nights and weekends.

A solid real estate fund can give you the diversification you need in your income and investments, without taking up more of your precious time and brain space. It may even ultimately be your best ticket to finally enjoying more time, without sacrificing the income and lifestyle you’ve been acquiring.

Entrepreneurs & Business Owners

Whether you’ve gone all in building a fantastic tech startup or small business, or are now exiting that company for millions of dollars, a real estate fund could be vital to your financial security.

Startups and small businesses have an extremely high rate of failure. There can be massive upside potential too. Yet, it is smart to have something to fall back on. A fund with tangible real estate collateral and passive income can be the ideal balance for a high risk venture which can be vaporized at anytime by macro economic factors or billion dollar competitors. If that happens, your fund investments can still ensure you’ll have an income and some assets to fall back on.

Similarly, if you’ve just sold your business for millions, you’ve got to manage that very wisely. Sure, throw some money into a new venture, take some time to travel and think about your next startup, and give a lot away. Just make sure you’ve stashed some in a solid investment that can provide some financial stability for you over the long term as well!

Other Real Estate Investors

Maybe you are already a very active real estate investor or owner of a successful real estate business. Maybe you are making plenty of money in wholesaling, flipping notes, or even build to rent. What those who survived (and didn’t) learned from 2008 was that having all your eggs in one basket can be catastrophic. There are big benefits of focused diversification. Meaning, real estate is great, but having multiple strategies in play can provide far better financial security and consistency. By all means focus on and master flipping houses in your area. Just balance that by leveraging others’ expertise in notes and income properties through a fund. Slice off a portion of each of your paydays into investments like these to protect your income and net worth over the long run.
Investment Opportunities

Find out more about investing in secured debt and real estate, go to NNG Capital Fund

Fuquan Bilal

Fuquan Bilal founded NNG in 2012 with the principal mission of capitalizing on the growing supply of mortgage notes in the interbank marketplace. Mr .Bilal utilizes his 17 years of residential and commercial real estate success to identify real estate opportunities and capitalize on them. To date, he has successfully managed three private mortgage note funds that primarily invest in singlefamily performing and non­performing mortgage notes. His financial acumen and proprietary set of investment criteria enable him to purchase underperforming real estate assets at a deep discount of face and market values, thereby increasing the value of the assets. This, coupled with his ability to maximize the use of leverage, enables him to build strong, secured portfolios with solid passive income flows.

AM I TOO YOUNG TO START INVESTING IN REAL ESTATE?

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By Glenn Mananeng

Real estate investing is a journey. The earlier you muster up the guts to take that first step, the sooner you’ll reach your financial goals. Beginners in real estate usually start their careers around their 30s or 40s. It may be due to fear, inadequate knowledge about the field, or the lack of capital to start investing. In real estate, there are no age limit nor requirements. Anyone with the right mindset can invest with as little as a few thousand dollars in their pocket. Unique Wealth Education wants to pave the way for young real estate investors who want to start in the business and leave their mark on the real estate world.

How old do you have to be in order to start investing?

If you skip the cartoons and drop your phone down to skip posting your social media drama and think about investing instead, then good for you! That’s one way of being responsible and your first step to being financially independent. Take note that from a legal standpoint, you need to be at least 18 to sign legal documents. There is still hope for ones younger than 18 though cause a guardian who’s over 18 can legally sign for you. However, you won’t technically own the properties you’ve bought until you turn 18.

Perhaps the best time to start investing in real estate would be during your ripe years in the 20s. If you’re serious enough, at this age you must have mustered up enough courage and researched about the basics of real estate. Start early to earn early.

Common excuses of young investors

“I won’t be taken seriously”

This is a pretty legitimate fear but one that can definitely be worked on. Many businesses are constantly on the lookout for youthful individuals since they are generally considered strong assets. There’s a term in the business commonly known as “analysis paralysis”. Feelings of self-doubt can start creeping in right before you even make the leap of faith and causes you to get paralyzed in fear.

One way to combat this is to put in the right time and effort to gain experience and confidence so you can plow through any negative emotions you might have lingering at the back of your head. Don’t stop midway, push forward and it will bring you much-wanted results! Believe it or not, your hard work will serve as your resumé.

“I don’t have the cash”

Another common excuse especially for those currently working or fresh out of college. The reasoning behind this is that most of them are still carrying student debt or loans with no well-established credit history yet. It is true that credit score can be a factor in some real estate investments. However, you don’t even need that good of a score to start investing. Remember, the reason why you thought about investing in the first place is to make yourself financially stable, the better credit score will just be a by-product. Use this as a means to pay off your student loans. Don’t let this excuse rob you of your great potential!

“I’m too young for this”

It can be difficult when you’re young since investing isn’t something that we’ve been taught very deeply at school. You think that most of these young investors were already wealthy to begin with. However, the most recognized investors started from the bottom and they clawed their way up until they finally gained success and became financially stable throughout the years. Just to remind you again, the sooner you do it, the more opportunities you have to make money.

Benefits of starting young in real estate investing

You have more free time

Real estate branches out to a lot of aspects that may be overwhelming for some. It requires a lot of knowledge and experience to know where to invest and learn about different market trends. By starting early, you increase the time frame of you learning more about the important factors in the industry which can benefit you with making the right choices on your hard-earned money.

You get to have tax benefits

A common misconception about earning well in real estate is that the bigger part of your income goes into taxes. This is wrong though as real estate is actually a very wise choice that can help you save taxes. At a young age, you can claim tax deductions in case you have applied for loans. Tax incentives are even offered on repayment for some particular transactions.

You have the marketing advantage

This is where spending most of your younger years on social media pays off. Tech-savvy youngsters have the advantage as they can use a wide variety of online platforms to market their real estate business. No matter what age they are, people are more keen to use online sources in their daily lives – especially when they’re looking to rent, buy, or sell a house.

You can retire early

Investing at a young age allows you to reap its benefits as soon as possible. This gives you the option to tick the boxes off from your bucket list. It normally takes at least a decade (or even less) to achieve what you want when you retire. Imagine starting in your 30s only to retire around the age of 40. You have more time to let yourself grow in the real estate business, and that my friend is a ticket to the comfortable retirement everyone is dreaming of.

Paving the way for young investors

It’s admirable to see you strapped-in and ready to take in your first real estate investment! We might want to back up a bit and think about how we’re going to do this – and we need to do this right. Let’s look at a few pointers before you take off.

Research, research, and more research

Be aggressive with your education. Aside from investing in real estate properties, spend your time and effort in books on real estate investing. For those that aren’t too keen on reading any sort of literature; podcasts, webinars, blogs, and even audiobooks are readily available for a fair price (some are even offered for free!). Make due diligence in your research because if you do, this will take you a long way.

Start small and build yourself up. Although there are a lot of real estate strategies out there, read on what would be the best fit for you. Investing in rental properties can be a good start for young investors. Learn to weigh out the pros and cons of each investment strategy which now brings us to our next point.

Risk management

A good investor knows that with every strategy that they plan to take on, risks come with it. It’s a matter of how you approach the risk and how you manage it. Every individual has their own take in cases of risks or conflict. Luckily for young investors, you will be able to handle it in a different manner compared to your older age bracket. Young ones have a fresh and appealing approach to the business. The enthusiasm and motivation levels are quite high which helps mitigate and manage any risks that come your way.

Remember, no matter how seasoned and experienced an investor is, they definitely encountered risks along the way. Managing these risks are what made these pros hardened and successful in the real estate industry. Understanding what is the worst case scenario in each investment, potential turbulence, and how to handle it if it occurs is key to mitigating risk and achieving success.

Have a mentor

You might be thinking that you don’t know anyone who might have the same interest in the real estate business as you do. People you know are probably out there partying, slaving their time playing video games, or acting out there bachelor/bachelorette fantasies which means you don’t have the helpful and motivating support from your peers.

Use your tools to your advantage. Join local real estate investing groups on Facebook or join similar conversations in twitter and actively participate in them. Your network should include a wide range of real estate investors, contractors, realtors, wholesalers, and property managers. Pick up the phone and don’t be afraid to ask for referrals.

A mentor who deals with “A-Z real deal training” is your best bet. Unique Wealth Education offers such a training program and many more which are facilitated by real estate professionals who work with you from start to finish on locating deals to selling them. Your net worth is directly proportional to your network. Start it right by having the right mentor.

If you feel like throwing in the towel, hold up a bit and let us help you. Try to do a little bit of trial and error and don’t be afraid as we’re here to guide you so you don’t commit irreparable mistakes in the first place. This allows yourself to keep things at your own pace and eventually succeed. If you want to get started but you still have doubts, Unique Wealth Education is here to help you out. Feel free to join our monthly meetup every first Thursday of each month where investors young and old share experiences and make business ventures with one another. Contact us at (734) 224-5454 to learn more.

Illinois Land Trusts

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By Randy Hughes

There is no federal land trust law. Each state either has a Land Trust Statute or trust laws that govern the validity of using a Land Trust to hold title to real estate. In past articles I have covered; Florida, Virginia and California. This issue of my Land Trust University newsletter will detail the Illinois Land Trust (Chapter 760 ILCS of the Code of the State of Illinois) and its benefits/challenges.

Illinois is the granddaddy of Land Trust Law. This is the reason why most Land Trusts throughout the USA are referred to as “Illinois-type Land Trusts.” Chicago Title formed the first Land Trust made in the United States to help a builder develop and sell lots for a suburb of the City of Chicago, Illinois. While Illinois does not have a specific Land Trust Statute, it does have over 100 years of case law that most other states default to when deciding Land Trust cases. As a point of interest, Barak Obama, holds title to his house in the suburbs of Chicago in a Land Trust (his attorney is the Trustee). While I cannot prove it, some say that 90% of the commercial property in Cook County, Illinois (Chicago), is held in Land Trusts. Needless to say, Land Trusts are very popular in Illinois. This fact produces good news and bad news when using Land Trusts in Illinois.

justice-2071539 smallThe good news is that because Illinois Land Trusts have been around so long and used to such a large degree within the State, it is easy to find legal help with Land Trust issues AND title companies are very familiar with insuring Land Trusts. Furthermore, most property insurance companies are also accustomed to correctly insuring a Land Trust (making the Named Insured the Trustee and the Trust).

The bad news is, Illinois law has plugged the benefit’s hole to some degree. For example, Illinois has a law that any transfers of the beneficial interest in a Land Trust are NOT VALID unless reported to the local taxing bodies. However, there is a good lesson in this tale because if you read the law carefully you discover that the law ONLY applies to counties of 3 million or more in population. There is only one county in Illinois that holds that many soles…Cook County! The rest of the State of Illinois is exempt from this law (it always pays to read the fine print).

Illinois law also requires that the Trustee perform certain “duties” to validate the Trust Agreement. I do not want my trustee to have ANY duties other than to hold and convey title (at the minimum). As discussed in previous newsletters, other states (e.g. Virginia) do not require any duties of a trustee other than to hold title.

services-4070150_1280Despite these obstacles, many historical benefits to the use of Illinois Land Trusts remain. The principal attraction of a Land Trust is its ability to confuse and hide ownership of property and ease of transferability. Other benefits are:

1. Insulation from liens and judgments (can be seized or transferred by court order)
2. Ease of transfer of interest (button, button…)
3. Avoidance of probate (allows for one to control the management and distribution of an estate for generations)
4. Ease of management by multiple owners
5. Keeping sales price confidential
6. Fracturing interests for multiple owners (don’t become a general partner… form two trusts)
7. Ease of linkage to other asset protecting entities
8. Confusion/expense to adversaries
9. Flow through tax consequences
10. Limited liability
11. Non-judicial repossessions of real estate sold on an installment contract (buyer can’t encumber the fee simple title)
12. Form 1099 not required for transfers (personal property is not subject to real estate regulations)
13. Ease of operating across state lines

write-593333_1280Other issues to consider when forming an Illinois Land Trust are:

Note #1: In Illinois when a beneficial interest is assigned as collateral for a loan, it must be recorded under the Land Trust and Recordation and Transfer Tax Act. Taxes need not be paid on collateral transfers, only on all other transfers. They also want the trust document or a facsimile to be recorded along with the collateral assignment.

Note #2: Illinois land trust statute (75 ILCS 435) requires that holders of the Power of Direction owe fiduciary duties to holders of the Beneficial Interests. This is not the case in most other states that have Land Trust statutes.

Note #3: Effective January 1st, 2011 House Bill 5282 is now PA 96-1145. The Act adds language to section 1c of the Joint tenancy Act (765 ILCS 1005/1c):

Note #4: In Illinois trusts are generally spendthrift trusts by default.

(735 ILCS 5/2-1403) (from Ch. 110, par. 2-1403) Sec. 2-1403

No court, except as otherwise provided in this Section, shall order the satisfaction of a judgment out of any property held in trust for the judgment debtor if such trust has, in good faith, been created by, or the fund so held in trust has proceeded from, a person other than the judgment debtor.

Where the homestead is held in the name or names of a Trustee or Trustees of a revocable inter vivos trust made by the settlors of such trust or trusts who are husband and wife, and the husband and wife are the primary beneficiaries of one or both of the trusts so created, and the deed or deeds conveying to the homestead to the trustee or trustees of the trust or trusts specifically state that the interests of the husband and wife to the homestead property are to be held by Tenants By The Entirety, the estate created shall be deemed to be Tenants By The Entirety.

hammer-719066_1280The new law also amends section 12-112 of the Code of Civil Procedure (735 ILCS 5/12-112). As amended the second sentence of that section now reads as follows:

Any real property, or any beneficial interest in a Land Trust, or any interest in real property held in a revocable inter vivos trust or revocable inter vivos trusts crated for estate planning purposes, held in Tenancy By The Entirety shall not be liable to be sold upon judgment entered on or after October 1st, 1990 against only one of the tenants, except if the property was transferred into tenancy with the sole intent to avoid the payment of debts existing at the time of the transfer beyond the transferor’s ability to pay those debts as they become due.

Remember from my previous articles, it is possible to form a Land Trust in one state to hold title to property in another state. This is a very foreign concept to most attorneys and is confusing to most everyone. Consequently, holding title in an out-of-state Land Trust is a good asset protection technique.

I encourage you to learn more by going to my FREE online training at: www.landtrustwebinar.com/411 and text “reasons” to 206-203-2005 for my free booklet, “Reasons to Use a Land Trust.” You can also reach me the old fashion way by calling me at 866-696-7347 (I actually answer my own phone unlike most other businesses in America today).

Randy-Hughes

Randy Hughes, Mr. Land Trust

If you want to learn more about the wonderful world of trusts, please go to: www.landtrustsmadesimple.com for more information. Or, if you would like to attend one of my FREE Land Trust Webinars, go to: www.landtrustwebinar.com/411 Also, feel free to call me with any questions. I actually answer my phone! 1-866-696-7347