Safety FIRST When Showing REAL ESTATE

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Safety at real estate showings and open houses has become a top priority in 2016. So just how critical has it become, and what are some of the most effective tactics for smart self-defense on the real estate field?

Real Estate is DANGEROUS BUSINESS

The threat to the personal safety of real estate agents, brokers and investors has become of paramount concern in the industry. Data released by the Bureau of Labor Statistics in September revealed that the vast majority of on-the-job fatalities can be tied to real estate-related work or activities real estate professionals engage in every day. This includes auto accidents, construction incidents, animal attacks and homicides while showing properties or on property management rounds.

It’s not just the number of attacks and real estate workplace deaths and injuries, but the statements of malicious attackers out to do “rich brokers” harm. In 2014 NAR reported that over 25% of REALTORS ® said they had encountered a threatening or harassing situation at work.

So with such high odds of REALTORS ® , investors, and property managers encountering physical attacks when showing houses and sitting at open houses what strategies and tactics can be put into play to stay safe?

10 Tips to Ensure Personal Safety

1. INSTALL SMARTER SYSTEMS

Dan Zito, of the Zito Realty Group – Keller Williams of Central PA, says, “I think it is important to, as often as possible, set an appointment to meet clients at the office prior to going through any homes with them. Not only does it allow me to meet them in a safe, ‘public’ environment, but it also allows for better customer service to the client. By meeting them at the office first, we are able to sit down and discuss their wants, needs, review homes that are currently on the market and answer financing questions, prior to visiting any homes.”

2. VERIFY THE ID OF PROSPECTIVE BUYERS

It’s far less likely that an agent or investor is going to be attacked if the prospect knows that their identification is on file. Requesting a copy of driver’s licenses and keeping records of them is a great first step. The Birmingham Association of REALTORS ® , who released its own ‘10 Commandments of Agent Safety’ all the way back in 1988, reportedly takes this even further by documenting the vehicle information of prospects, requesting references, and verifying them before showing property. Today, simply Googling prospects or hitting the most popular social media networks can reveal a lot about prospects too.

3. USE FORMS TO STAY ORGANIZED

It’s too easy for industry professionals to become complacent about this issue or to fail because systems are fragmented. BirminghamRealtors.com offers downloadable PDF Agent ID, Prospect ID, and Agent Safety Itinerary forms to beat these challenges.

4. LIMIT ACCESS AND INTERACTION

Those lacking the bandwidth to ensure their personal safety when showing property or sitting open houses can opt for reducing risk by limiting time alone with prospects. This could mean installing keyless locks and allowing prospective renters and buyers to show themselves around. Or perhaps limiting viewings to a one-time event, invite-only events or broker-only opens. Or, there is now always the possibility of virtual open houses via Skype or Google Hangouts.

5. SAFER SHOWING STRATEGY

Veterans United Home Loans advises not to ride with strangers in your car. Let them meet you there. Don’t show the way and have possible assailants behind you; let them go first instead. Keep showings during day light hours. Make sure you pull into the drive last so you aren’t blocked in.

6. USE THE BUDDY SYSTEM

Let someone know where you’ll be. Let a partner know who you are showing to, and where, and have them call you to check in with you. Certainly there has to be someone that would appreciate you doing the same for them. You may even want to tag team showings together.

7. CONDUCT SOME RECONNAISSANCE

Getting to know a listing in advance of showing can be a big help. Recognize if windows or exterior lighting has been tampered with. Know your exit routes. Ensure there is reliable mobile service so that you can reach out in an emergency. Don’t have the SWAT team raiding your open house just because your signal was weak and your buddy couldn’t get in touch.

8. DON’T LOOK LIKE A VICTIM

Conducting yourself with confidence can help prevent becoming the victim of an opportunist crime, just because you looked like an easy target. Personal security and identity theft expert Robert Siciliano suggests via his blog that wearing expensive jewelry can just make it too tempting for criminal not to attack, even when it is risky for them. This also certainly carries over to personal social media use and conduct when off the clock. Being a little too open and flamboyant may make you a mark. Pulling up to showings in an armored vehicle might go a long way to scare off any would-be muggers or assassins too.

9. FLEX YOUR TECH

Today’s smartphones and tablets can also double as great security tools. The Field Guide to REALTOR ® Safety recommends using distress codes to communicate with other team members. Just don’t make it too obvious. Apps like Guardly can reportedly launch GPS tracking, and connect to law enforcement or colleagues with a tap of a screen. Then there are apps like Salient Eye, which can turn your Android or iPhone into a security camera and even set off motion-triggered alarms. Via Facebook Ray Perry, a REALTOR ® at CPS Country Air in Santa Rosa has suggested, “Why not the real thing? An app called Glock works well, of course with a concealed carry permit.”

10. UPGRADE YOUR PERSONAL SELF-DEFENSE CAPABILITIES

While packing a firearm or being known for carrying a new Galil or ‘Mutant AK47’ in your trunk might be a deterrent, it isn’t always the answer. It could also make you a target or just ensure that attackers show up even better armed than they would otherwise. Plus, there is always the issue of actually having to use it, and the fact that no permit is going to automatically get you off the hook for taking a life.

Non-lethal options, such as pepper spray or stun guns, might be effective enough in most scenarios and give real estate pros time to flee to safety and get help, says Sensei Gilliland, Southern California real estate expert and founder of Black Belt Investors. Sensei doesn’t just train in martial arts as a method of self-defense, he operates a chain of 360 Martial Art Academy locations. Self defense methods including Brazilian Jiu-Jitsu, Judo, Haganah and KravMaga provide some of the most effective types of self-defense and hand-to-hand combat training, even against armed assailants.

We encourage you to think of what other things you can do to stay safe and keep your team secure on the front lines of the real estate landscape.

Memphis Invest and Three Other Clothier Companies Honored On INC.’s 5000 List

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By Tim Houghten

Steady, Sizzling, Superior Real Estate Strategy

What’s the secret to winning in the real estate race? The tale of the tortoise and the hare used to be a staple in everyone’s education. That appears to be a part of the lesson plan that’s been torn from the pages for many today. Do you remember who won the race? What we all need to remember is the horde of hares that rushed themselves right out of the running just a few years ago. So how can real estate investors achieve steady cash flow, sizzling returns, and superior long term results, without risk of burning out?

WINNING REQUIRES WISDOM

Soccer games don’t have all the breaks of American football. In order to win it not only takes great team work, but superior stamina. It also requires that players know when to sprint into action and push, and when to act tactically. True wisdom is the meeting point of knowledge and knowing the right time to act. In real estate it takes stamina to maintain gains for the long run. It requires intelligent execution of action, knowing when to hold, and what to focus on.

Yet, in the current environment where anything but rushing in like a bull seems strange, who on earth would have the courage to moderate their growth and pace on purpose?

An exclusive interview with Partner and VP of Sales & Marketing at Memphis Invest, Chris Clothier reveals a firm that has been willing to do just that. The net effect of the approach certainly seems to be wowing a sufficient number of savvy investors. And given the number one turnkey real estate company’s status as one of the best known, and most respected brands, a blossoming WOW Club, and being crowned with Inc. 500 recognition, it seems to be working.

The 3 S’s of Memphis, Tennessee’s Most Successful Turnkey Real Estate Company

1. SOCCER

Chris Clothier says “The high-level training and licensing I received as a professional soccer coach have paid off tremendously in business by helping me to stay focused on long-term development both of myself, our clients and our team.”

2. SHARING

While others are increasingly concerned about sharing their secrets and playbooks, Chris has become very active on the online real estate forum BiggerPockets. Asked about this participation in the new sharing economy he says: “When I was 18 years old I was lucky enough to attend a Zig Ziglar event. He said something on stage that really had a profound effect on many of us attending that night. He stated that you could have anything you wanted in life, if you help enough other people get what they want in life.” That’s a philosophy the Clothiers continue to practice on a daily basis.

3. SUSTAINABILITY

On ensuring sustainable growth when others find it impossible to throttle their ambition Chris said, “Going into 2016, as leaders of our company, we began planning for moderating our growth rate, and spending the next 15 months improving upon our processes, hiring additional team members, and implementing a new, interactive training program to create even greater congruency. It is easy to grow too quickly and in a haphazard way. We feel that this is a perfect time to re-calibrate everything we do, and how we deliver our services to our clients and tenants as we prepare to begin growing more rapidly again in 2017.”

THE SCOREBOARD

What are the results of this approach to building a real estate machine? As of today, Memphis Invest’s founder says, “We now have over 1,125 clients, offices in Memphis, Dallas and Houston, with a team that is 63 members strong, and are on-pace to close 600+ transactions for our clients this year alone.” There’s nothing sluggish about those digits.

UP YOUR GAME…

Whether just starting out in real estate, or seeking to expand an already formidable real estate empire there is no question that it’s worth checking out what’s going on in Memphis. Investors can scoop their Free Passive Income Jumpstart Package, and detailed analysis of three solid rental property markets, Houston, Memphis, and Dallas, at MemphisInvest.com.

All in a Day’s Work (shop)!

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Crush It! – 2019 Learn The Secrets of Real Estate Success

In the first months of the year, the Bay Area Wealth Builders Association (BAWB) presents an all-day workshop called “Crush It! – 2019 Learn The Secrets of Real Estate Success”. This author attended last year’s Crush It class held in February, 2018, and another one is coming up on Saturday, March 23, 2019. Here is what to expect.

The Theme

At meetups, the author typically meets three categories of people:

  • “Newbies” who are aspiring to invest in real estate,
  • Investors who are doing one or two projects, typically “fix & flips” and,
  • Seasoned investors who are fairly well “set” with a portfolio to their liking, who are out for the evening socially as much as anything else.

“Crush It! -2019” is designed to give “newbies” a “jump start” as well as a sound foundation all in one day, and to also provide season active investors some serious tools, skill sets and insights that might otherwise take them months or years to accumulate. Therefore, the concepts and content discussed and taught at this workshop are highly-concentrated, and the instruction is fast-paced. This equates to a tremendous high value versus the cost of the event in terms of time and money.

Instructor and Guest Presenter

Michael Morrongiello is an author, education, and long-time active real estate and real estate “paper” investor who specializes in “fix & flips” property rehabilitation projects primarily in the North Bay region, north of San Francisco, as well as investing in and trading real estate secured “paper” (i.e., notes, mortgages, trust deeds). Over his 35+ years in business, he has completed thousands of transactions, and he is an active investor who is “in the trenches” on a daily basis. Thus, the teaching and instruction given are extremely practical, real world, and immediately useful, unlike many so-called “guru” teachers who recite what that have copied in the past from others.

Michael teaches his CRUSH IT! Full day workshop only one time each year so it’s wise to catch it if you can. Many attendees come back year after year as he keeps the material relevant to the various market cycles we may find ourselves in. Also, unlike many seminar promoters, he has no hard “upsell” offerings to additional boot camps, coaching, mentoring, joint-venturing, education courses, and the like. The class is pure high-quality content! This is his contribution to the investing public, along with being the founder and organizer of the fantastic monthly meetup called the Bay Area Wealth Builders Association (BAWB) www.BAWB.info which is now in its 19th year of holding education meetings, and always has a large turnout at its meetings and workshop events.

At this year’s CRUST IT! -2019 event, there will be a guest presenter, who is with one of the largest national data providers and an expert in the area of “Data Mining”. The use of data to uncover probable and profitable property opportunities is of paramount importance to the savvy investor and their marketing. There are many companies offering various types of data or leads to real estate investors, but they often are resellers, essentially reselling data they acquire from his, one of the three largest data providers. They mark it up, and resell it. At CRUST IT! -2019 you will be able to listen and learn from the real source.

Evaluating Prospective Deals

One of the most important skills for a beginner or an experienced pro is learning how to distinguish a good deal from a marginal deal, from a bad deal. Market prices fluctuate and are declining to varying degrees around the country, so it is vital to know and understand local market conditions, as well as how to analyze the deal itself.
An essential part of evaluating a deal to wholesale or to rehab is estimating the necessary rehab costs. Part of the day will teach you how to prepare an inspection repair estimate in 20 minutes, or less.

Buying Right!

Once an investor buys a property THEY OWN IT, for better or for worse! It is important to construct “profit guaranteed” offers. You need to “buy right” all the time as this will keep you out of trouble. Michael’s teaching includes many tips and traps when negotiating with property sellers, and overcoming their concerns and objections.

Business Entities

Having the proper business entity for your operation is important from both privacy and taxation standpoints. It turns out that entities used often are different for buying and “flipping” properties rather than for “buy and hold” property purposes. This is an important topic to learn as the consequences can be very costly.

Residential Redevelopment

Fixing up a residential property for sale can be complicated. Not the least is hiring a contractor, or several trades, with the necessary bonding, insurance, license, bids, contracts, and so on.
Zoning and building codes often enter into the mix. And financing the project is another major consideration. So, it’s important to get your “residential redevelopment” projects up and running timely as costs can add up!

Getting Leads

The only way to stay in business is to generate consistent leads and “deal flow”. There are many sources of leads to discounted properties and distressed sellers. Some are more productive than others. It’s important to know which ones are most useful in terms of your cost and time expended. This is outlines during the day of teaching.

Additional Topics

There is a lot of ground covered during the day, but some additional topics covered are:

  1. Dealing with MLS-listed or bank-owned properties vs. private sellers
  2. How to attract and safely use private money
  3. “Tax-free” investing
  4. The 3m’s of marketing
  5. Creating y our own marketing campaigns geared to your budget and skill sets
  6. Doing the right paperwork (VERY important!)
  7. Marketing messages and semantics
  8. Boosting your response rates significantly in your marketing

Conclusion

This Crush It!-2019 Full-day workshop, and its modest cost is one of the best values around in the author’s opinion. Michael says that with the right education and knowledge real estate investing can be easy fun and profitable. I couldn’t agree more. More details, additional information or to register can be found at:

Learn More

Bruce Kellogg’s Biography

Bruce Kellogg has been a Realtor® and investor for 36 years. He has transacted about 800 properties in 12 California counties. These include 1-4 units, 5+ apartments, offices, mixed-use buildings, land, lots, mobile homes, cabins, and churches.

Mr. Kellogg is a contributor and copy editor for two national real estate wealth-building magazines: Realty411, and REI Wealth Monthly.

He is available for listing, selling, consulting, mentoring, and partnering. Reach him at [email protected], or (408) 489-0131.

The KEYS to Unlocking ELITE Success in Real Estate

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Exclusive Interview by Tim Houghten

The Founder of Rodeo Realty, the largest single-owner firm in the nation with 12 branch offices, 1,200 REALTORS ® , and annual sales and listings exceeding $5 billion, shares how he went from operating out of his garage to listing homes for $150 million.

What does it take to achieve elite success, at the top of the ultra-luxury real estate market, in the most exclusive community in the world?

Rodeo Realty is a name not just associated with celebrity real estate, but with dominating the ultra-elite markets of Los Angeles and Beverly Hills, California. The Rodeo Realty brand has been ranked the largest single-owner firm in California, with 12 branch offices, 1,300 REALTORS ® , and annual closed sales exceeding $5 billion. What does it take to obtain, and own this level of success?

Syd Leibovitch is the president and leader of the Rodeo Realty empire, and has been championing the crème of the crop of top-end international real estate, year after year, for 30 years. No matter what you aspire to achieve in real estate, it’s clear that Syd just might have a tip or two on how to get it.

In an exclusive interview, Syd Leibovitch gives us a peak behind the glass to see what it takes to get to the top of the real estate world, and stay there. Want elite success? Where do you start?

BLAZE YOUR OWN TRAIL

Rodeo Realty’s founder has been breaking through barriers since he got into real estate sales during college. Starting at 23 years old Syd says, “I sold three houses in my first month. I only went into real estate as a job for winter break. I fully intended to go to law school. But when my first sale closed, and the buyer hugged me and told me how excited she was to own a home, I was hooked!”

Syd says his family, who thought becoming a doctor or lawyer was a far better career choice, were disappointed when he began pursuing real estate. Yet, by the time he was 25 years old, he was a top-selling agent in Los Angeles. In just three years he opened his own firm. Today the world’s leading doctors, lawyers, and hottest celebrities come to Leibovitch’s firm for help in selling and securing the globe’s finest estates.

HARD WORK

During his time studying economics and banking at California State University and UCLA, Syd ran for the relay team, track and cross country; he set new school records. His take away from the experience, and how it has influenced the success of Rodeo Realty – “Learning the value of hard work.”

“People can’t ask for more than your best. Shame on you if you don’t give it to them.” – Syd Leibovitch

CONSISTENCY

Last year Rodeo Realty sold at least one unit for $70M, and listed another at $150M. Yet, the surprisingly modest founder says that the majority of the firm’s transactions are in the $1M to $6M range, and that consistency is key. If you’ve ever run cross country you know you have to be able to keep up the pace, for the long haul, and often over unknown and challenging terrain. This could just as well describe navigating the real estate world. Yet, Syd says: “I did at least one deal a week for my first 15 to 17 years in the business.”

How do you create that type of consistency in results? He says, “I found something I like doing, and I do it a lot,” explaining that “if you do your best to take care of everyone you meet, the results will take care of themselves.”

DO YOUR BEST

Although he is a very hands-on business owner and accessible to his staff, today Syd has certainly handed on the baton to Rodeo Realty’s army of luxury real estate agents, and expert management team. Syd is very clear that he does not compete with his REALTORS ® for sales and credits them for the incredible sales figures posted. Asked how he manages to stay organized, and maintains efficient operations at such scale, Syd simply credits his “good people,” whom he says have become “friends,” more than employees.

Rodeo Realty surprisingly invites even new agents to come and train with the organization. So why work with Rodeo Realty, besides the prestige of joining one of the world’s most respected and envied real estate companies?

Syd’s Theory – “You’ve got to be the best, you’ve got to give the best.”

At Rodeo Realty this isn’t just evidenced by selling the best real estate on the planet, it is “being the best in ALL areas.”

THAT MEANS:

• Best Luxury Real Estate Website – ranked by Who’s Who in Luxury Real Estate

• Best Marketing – with an in-house print shop with 30 team members

• Best Internet Marketing – with an in-house team of 17 graphic artists

• Best International Marketing – reaching 200M+ buyers, in 190 countries, monthly

• Best Technology – with Cirrus Super Search for deep data, on the go

• Best Personal Service – local expertise, global presence

Syd says quite frankly and firmly that “real estate agents that want to serve their clients the best find that ability at Rodeo Realty,” and that “if you’re not on the Rodeo Realty team that’s because you’ve got other priorities, and are putting something else first, rather than serving your clients in the best possible way.”

It’s hard to argue with that.

OPEN THE DOORS TO YOUR SUCCESS IN REAL ESTATE…

To reach your full potential in real estate; blaze your own trail, work hard, be consistent, give your best, leverage good people and the best tools.

Want to see what a great real estate website looks like and view some of the most exclusive real estate eye candy in the world? Check out Syd’s site at RodeoRE.com, and download the free Rodeo mobile app.

Will “Power” Duquette – Finding Your Path & Achieving Significance

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by Tim Houghten

Choose where you want to go and figure out how to get there. Sounds easy, right?

International trainer, consultant, real estate investor and speaker Will Duquette empowers people to make as much as six figures an hour. So how did he land this prestigious gig? How does he help you unlock your income potential?

BREAKING THROUGH WITH WILL POWER

Sometimes it can be hard to differentiate the hype from the real deal out there today. There’s a lot of noise and fluff. But you won’t find that when you attend one of Will “Power” Duquette’s high-powered events or one-on-one consulting sessions. The proof is in the results.

Duquette has…

• Helped Shark Tank investor, co-founder and CEO of HSN Direct International, and author of

“Act Now: How I Turn Ideas Into Million-Dollar Products”, Kevin Harrington, to catapult his on-stage sales – with five PowerPoint slides.

• “Never lost a penny in 17 years of investing in real estate.”

• Just “bought” a property with $110,000 in instant equity last week, with no money down.

• Had real estate investing students make $70,000 in less than 30 days after training events.

• Helped the Jax REIA President crush it with a 25% closing ratio.

• Had 12 year real estate veterans raving about the value of his experience.

• Has shared the speaking stage with Donald Trump and Richard Branson.

• Is launching a YouTube challenge to 2016 Presidential candidate Donald Trump.

FROM PAUPER TO MILLIONAIRE MINDSET

Will is dogmatic in his belief and service in helping others to not only achieve their financial goals, but personal dreams and more. In fact, he says, “Anyone can receive great wealth and significance, without needing anyone else’s permission. If they’ll invest in learning, and take action.”

Duquette insists it is this combination of effective training and action that has not only unlocked the massive success potential of his clients, but his own as well. He says there are irrefutable laws like gravity, and our subconscious that run us, and differentiate our results. Through recognizing them and harnessing their power, Duquette empowers leaders to “experience life transformations that stay with you and serve you.”

THE SHIFT

Will Duquette says Donald Trump offers the classic example of how wealthy people think differently. When Trump was $900 million in debt, he didn’t hide like most would. So what did he do? Operating from that millionaire mindset, he attended a cocktail party with those creditors that he owed $900 million to. Gutsy, right. Yet, in a side room at that event, Trump surrounded himself with this mastermind group, and not only seriously discounted this sum, but leveraged their wisdom to craft a massive success plan. Trump is now worth almost $9 BILLION, and is running for U.S. president.

So if you want different results, you’ve got to take different actions.

But beyond just curating the success habits of others; Duquette has lived it himself. When he was young, he was always told that his family couldn’t afford things.

When he found out that he was going to have his own child – that’s when it changed everything, and created a new sense of urgency. He didn’t want that to be the story he had to tell his daughter. Still, he admits that it took several shifts and years for him to make his own ultimate leap. Because most of what he teaches today just wasn’t shared or known back then.

HOW WILL GOT THE POWER IN 7 QUICK STEPS:

1. Got fired from the rat race after calling in sick for having pneumonia

2. Opened his own business

3. Began investing in real estate to make bigger chunks of money

4. Discovered the power of blind faith belief

5. Accepted his ‘license to make mistakes’

6. Learned how to manage and change his own perspective on happiness

7. Decided his apex was in significance through helping others, not just making money

THE 4 KEYS TO WILL’S PERSONAL SUCCESS

When Duquette started on his adventure the close-knit group that was banking huge in speaking and sales weren’t sharing their secrets. They kept those closely guarded. Yet, he found a way. And he credits his own success to four main factors.

• Vowing to never give up

• Modeling success wherever he could find it

• Investing big in education

• Just taking action

Duquette says the really significant quantum leaps came when he forced himself to step out of his comfort zone and chose to “pay more than comfortable with” for better training. In one case that meant putting $10K on a credit card to really learn how to take his game to the next level. And today, Will might not notice if ten thousand dollars dropped out of his billfold on the way to the podium.

UNIQUE PERSPECTIVES ON REAL ESTATE

Duquette trains real estate speakers and investors, and still invests in real estate himself. While you may find him gracing the stage at events in London, Prague, and Germany, Duquette’s home base is in Jacksonville, FL. While often overlooked by others; ‘Jax’ is the largest city in the contiguous United States, and the most populous city in Florida. It has also been praised by RealtyTrac as offering the biggest profit margins for house flippers. But you don’t have to tell Duquette that. He once bought a half a million dollar home with just $10 out of pocket, and has mastered a transaction engineering skill set that allows him to invest in many properties with nothing down. Duquette says it is all about “looking for problems and finding solutions.”

While he says that world travel and international training has revealed that all people essentially have the same fears, challenges, and belief issues, he himself certainly has a unique perspective, and style, that is proving itself with dollars and changed lives. He claims to be perhaps one of the only people to not have lost a penny in 17 years of real estate investing. His high energy, experiential real estate events that include live deal making have produced profits for attendees before they are done with their homework.

And the ‘Profits in Pretty Houses’ course is reportedly one of the first and only to include a flow chart so that investors are never stuck, or wondering what comes next.

Looking forward Duquette says the market is just like it was seventeen years ago, only better. “Because all the fundamentals are right, but others are scared to take advantage of the opportunities on sale.” As well as noting that rather than hurting his business, “massive buying sprees by hedge funds have actually helped” his business, as “they have depleted inventory levels”, and make his properties more in demand.

CHOOSE WHAT YOU WANT & DUQUETTE WILL UNLOCK YOUR POWER TO ACHIEVE IT…

Will “Power” Duquette offers sales, confidence, and personal development training, real estate speaker training, speaker services, real estate investment courses, and one-on-one consulting. Find out how to get more of what you want at www.willpowerduquette.com.

 

From TOP Model to Top of the Real Estate World

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Kaya Wittenburg, has gone from small Midwest town, to becoming a top fashion model working directly with Gianni and Donatella Versace, to leading U.S. and global developers in selling the most breathtaking condos in the world.

Through beautification in real estate design, Kaya Wittenburg has risen to being involved in over $4B worth of real estate sales in some of the most exclusive locations on the planet.

This has included promoting exciting world-class projects in Las Vegas, Miami, Panama and the Bahamas. As a public speaker and high-profile industry personality, he has been featured on CNN, BBC World, GQ, and The Wall Street Journal, just to name a few.

I managed to track Kaya down between photo shoots to tap into some highly credentialed insights on branding new construction, and profiting from the highest end real estate investments. So, what tips can be gleaned from Wittenburg’s successes for maximizing personal performance, scooping better deals on luxury real estate, and renovating or building new projects that push new limits in ROI?

Just what can the glamorous modeling world teach aspiring real estate moguls?

How do you go from growing up in a small suburb to selling over $4B of the Most Envied Destination Real Estate on the planet?

Kaya Wittenburg says from his first big casting in Milan with Gianni Versace, the modeling world provided countless experiences in learning about people, trends and the details of effective styling. From new countries to diverse cultures and new friends, Kaya says he found “Fashion, art, architecture and interior design,” all appreciated by those he mingled with.

Of his first Versace dinner Kaya says he remembers being “Totally overwhelmed. The attention to design was simply amazing. Every plate, tray, piece of silverware at the table was a work of art.”

While some might find this level of attention to detail and priority on luxury excessive in the real estate world, it has proven to be a consistent component in the success of leading luxury brands, while delivering real lifts to profit margins.

When asked what was behind his success, Paul McRae, broker of the Galleria Collection of Fine Homes in Fort Lauderdale once pointed to his $300 per foot office wallpaper. One of the top ten Manhattan brokerage firms MNS recently achieved a $200 per foot premium on unit sales at the Edge through its efforts in marketing. Wittenburg says he is currently working with a hot brand in Miami that plans to catapult oceanfront property prices by 35% with a new luxury development.

For real estate investors seeking the most attractive returns with maximum security, the Sky Five Properties founder says, “Investors have a greater margin of safety in branded residences because resale values have been proven to be somewhat more stable than non-branded residences.”

He also comments that when it comes to renovating or designing new multifamily, conversions and condo developments one of the worst mistakes is, “A lack of creativity and sex appeal for lobbies and pool decks, which can destroy pre-construction sales efforts.”

Being one of the most transparent authorities in the world of real estate sales, Kaya has often ruffled the feathers of his competitors by openly giving condo buyers and investors the upper edge. He says, “Everything is negotiable, even in pre-construction developments,” and often offers insights on common real estate sales tactics via the Sky Five Properties Blog.

ON DEVELOPING AND MAINTAINING AN ELITE LEVEL OF PASSION AND CREATIVITY…

In addition to world travel, Kaya Wittenburg was blessed growing up in a real estate household with his mother actively sharing her deal-making and entertaining client-friends for dinner. It was at this young age Wittenburg caught the excitement of real estate investing.

Of course, as any investor, REALTOR ® or CEO knows, it takes regular maintenance and intentness to keep up an elite level of passion and innovation to operate at the very top of the game. To this end, Kaya has nurtured a lifelong yearning for learning and constant self-improvement. The Miami real estate innovator says “meditation and yoga practice has helped me elevate the quality of my thoughts – thinking thoughts that induce a sense of excitement, confidence, and gratitude, every day.”

While others striving to compete in this fast-based business normally wind up letting what they have learned fall to the wayside, Kaya says religiously sticking to “daily journaling makes a huge impact in long-term success,” a practice he picked up from former Florida Governor, Bob Graham.

Want to find out what’s the next big pivot for Miami real estate, and which top global label will be the next to unveil a luxury branded building in the Magic City? Kaya says we’ll have to look out for his next update.

Find out more about Kaya Wittenburg’s story and track Miami real estate trends online www.SkyFiveProperties.com and via Twitter @Sky5Properties.

Single-Family Home Rentals are Dead? Discover the #1 Investment Opportunity FOR THE NEXT 20 YEARS

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By Gene Guarino, CFP

Are single-family home (SFH) rentals dead? Well, that depends on who you are renting them to of course. How does $200-$300 a month in positive cash flow sound? When I was 20 years old, that was exciting. Today, that doesn’t get me very excited at all.

Lets face it, one turn over with even one month of vacancy eats up an entire year’s worth of profits in most cases. Let me show you how to get TWICE the fair market rent with a long-term, low-impact tenant or if you’d rather, how you can make $10,000 or more NET per month with Residential Assisted Living.

The Baby Boomers are here and they are driving the demographics in housing for the next 20 years. Nearly eighty million of us were born between 1946-1964. We are the Baby Boomers, and we are turning 65 at the rate of over 10,000 a day. Life expectancy is increasing and many of us will live well into our 80s and 90s. There are 4,000 a day turning 85 and 70% of those people will need help for an average of 3.5 years. The 85+ year old group is the fastest-growing demographic of all in the U.S.

It is projected to triple over the next 20 years. Senior housing is a great place to be now and will only be getting better and better for the next 20-30 years.

The reality is that most seniors will not need a nursing home but they can’t live safely on their own either. They do need assistance and that is what is provided with Residential Assisted Living or RAL.

Many of you have already faced this situation with your own parents. If not, well, your time is coming. This mega-trend will last for several decades to come and you can profit from this unstoppable wave and help a lot of people by “Doing Good and Doing Well”.

Senior Assisted Living is the Best Real Estate Investment Opportunity for the Next 20 Years.

This mega trend is a “Silver Tsunami”and it has created a massive opportunity for smart investors who are poised to profit. Let me explain why “typical” SFH rentals are dead. If you rent a home to a typical tenant, you will get a typical profit of a few hundred dollars a month, maybe. With a typical turnover and a month of vacancy in between you may end up with little or no profit at all at the end of the year. Now, if you were to get TWICE the fair market rent, your profit increases exponentially. Instead of a few hundred dollars in profit you would be netting a few THOUSAND dollars in profit each month.

With your typical tenant you have a one-year lease. They may stay for a second or even a third year but they are looking to buy their own home and move out in most cases. That’s not bad but, on the other hand, what if they move out after a few months in the middle of the night and leave you with thousands of dollars of repairs from the damage they left behind? Been there, done that.

Let me ask a silly question: Would you rather have a long-term, low-impact tenant? A tenant that wants a five-year lease and wants to have two or three, five-year renewals on top of that? That is what an operator of a RAL wants. That is why senior housing is the best real estate investment opportunity for the next twenty years. Long-term, low-impact tenants who are willing to pay twice the fair market rent.

Why would someone pay TWICE the fair market rent and how do I find them!

The answer is your tenant, the operator of the RAL, will still be able to make a lot of money even after paying you twice the FMR. Let me fully explain that by crunching the numbers.

The national average for a private room in a residential assisted living care home is $3,500 per person, per month. Keep in mind that there are people paying two and three times that and there are people paying half that amount. You get what you pay for of course. Remember that 70% or more of the wealth in the U.S. is controlled by seniors. You may not be able to afford or provide for your own long-term care needs, but they can. Keep reading and I will share with you how you can live for free when you need your own long term care.

How much can I really make?

With a home that is licensed for 10 residents, at an average rate of $3,500 per resident, that is $35,000 per month in potential gross income. The expenses, including debt service or rent and even vacancy is about $25,000. That leaves a net profit of $10,000 per month for an average home. That is for an average home and an average clientele. I have homes that gross $40,000 and $50,000 per month and more. The reality is the expenses are virtually the same for an average home as they are for an above average home. The difference is the cost of the real estate.

As a landlord you could be very happy to have a couple thousand dollars per month in positive cash flow. As the operator of the RAL you can earn $10,000 to $20,000 net per month. That is a true win-win situation.

If you are considering renting your home to an RAL operator…

You will be well served to learn all you can about this opportunity. You will want to know what your tenant, the RAL operator, is supposed to be doing to be successful. That way you can better choose the right tenant and be set up for success from the start. At RAL Academy, I show people how they can profit whether they are a landlord or a tenant.

When we age we become more dependent upon the help of others in order to do basic activities of daily living. These self-care activities include ADLs such as cleaning, clothing, bathing, medication management and food prep.

You can profit either way.

This is not just another real estate “fad” that comes and goes.

This is a massive shift in housing demographics. You will either be riding on top of this unstoppable wave or you will hesitate, procrastinate and potentially miss it completely. That choice is yours but you will be a participant one way or the other. I have comparatively little competition. How many people do you know that are in the business of RAL?

With RAL it doesn’t matter whether the real estate market is at the peak or coming down from it, cashflow is cashflow. After 30 years as a real estate investor, doing everything from fix and flips, short sales, REOs, lease options and more, my goal is now just one thing: Significant long-term residual cash flow. Residential Assisted living gives you the opportunity to do one deal and you are done. For life.

What is the key to success in Residential Assisted Living?

The key to success in RAL is in the details. You need to know which type of home works best, what location is best, how to find the home that no one else wants that will work perfectly for a RAL home and how to do it quickly without all the guess work. You need to know how to find the right team to make your life easy and to fill the home with high-paying residents. I’m sure there are more questions coming to mind for you like: What about the liability? What about a two- or three-story home? What about… There is a lot to know, but the good news is you are not on your own.

If you want help in learning how to do this, it is available. Learn more at www.RALAcademy.com The phrase, “paying for speed” is not just an expression, it’s a reality. That’s why the Residential Assisted Living Academy was founded. To show others what to do and what not to do in an easy-to-follow, step-by-step process. I’ve done it, and I show you how you can do it too.

The “Silver Tsunami” is here and the opportunity to “Do Good and Do Well” is clear.

If you would like to learn more, at my training programs we go into depth so you will be totally prepared to succeed in this endeavor. Imagine having one RAL home providing your family a $10,000 per month POSITIVE CASH FLOW… Now, imagine scaling a bit and having two or three… now you’regetting the idea. It’s a new world out there. The days of making a few hundred dollars a month in cashflow per house are history. If you’d like to learn how to do one deal and make $10,000 per month or more, let me show you how you can make that happen. Gene Guarino, CFP is the founder of the Residential Assisted Living Academy. Learn more by visiting www.RALAcademy.com. Gene can be reached at: [email protected]

Welcome To Your MONEY PATCH

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By Tim Houghten

Money might not grow on trees, but funding portal Patch of Land may have invented the closest thing to it…

Whether looking to grow your real estate investments with access to attractive capital, or boost your yields with passive income investments, this is one patch of the web worth checking out. Named one of Entrepreneur magazine’s ‘100 brilliant companies of 2015’, Patch of Land brings a unique twist to real estate lending and crowdfunding, and the proof is in the performance.

PIONEERING WIN-WINS

While peer-to-peer lending, and crowdfunding has been catching plenty of media attention, it hasn’t always been a walk in the park for fundraisers and funders. Until now the two main challenges have been the amount of work required for project promoters, without any guarantee of funding. And then a lack of track record, and organization base investment decisions on for those looking to put their capital to work. Recently, Patch of Land co-founder and CEO Jason Fritton provided a new perspective on how Patch has created a new model of peer to real estate lending. There are two things which really separate this platform from everything else on the landscape:

1. Patch offers ‘Pre-funding’, gives you your loan, and then raises funds from the crowd

2. Patch works together with institutional lenders instead of trying to replace them

This creates a true hybrid where “real estate, finance, and technology, converge.”

The startup that Fritton describes as a “tech and efficiency company” shares some threads with other peer-to-peer, online mortgage lending, and crowdfunding sites. These are that real estate fundraisers bring their projects, which are ultimately financed by the crowd. It is the execution that stands out.

Fritton highlights that his company is the “first in market to directly secure fractional investors in real estate loans.” That means Patch of Land underwrites, and gives real estate investors and professionals the funding under the supervision of SVP of Underwriting & Acquisitions Douglas Cochrane. Then Patch of Land opens up the opportunity to a range of individual accredited investors and institutional lenders.

Now operating in 25 states, and with over $600M per month in funding requests the company is able to offer retail investors, hedge funds, regional and “community banks the yields they really want, along with efficiency in origination.” In fact, Jason explains that this enables these capital sources the freedom to participate in deals they could not do directly, while permitting more common sense underwriting of deals. Operating under SEC Rule 506(c) of Regulation D, this connector empowers those with projects to raise money cost-effectively without all the marketing and substantial filing expenses of going it alone. All while delivering the due diligence investors need and crave. As of September 25 th , 2015 Patch of Land had a solid track record of performance, with no principal or interest losses.

THE SECRET SAUCE

Fritton explains that a great deal of the success has come from “the privilege to hire experts in all areas,” to grow the California based Patch of Land team. The founding and executive team now spans a wealth of technology expertise, lending professionals with billions in transactions under their belt, along with an entrepreneurial marketing team with experience in organizations like Disney. Silicon Valley appears very bullish on investing in ‘The Patch’ too, with a successful, oversubscribed Series A round of funding topping $23M, achieved in early 2015.

So far Patch of Land has perhaps been most well-known for funding single family deals, but Jason tells us they have recently funded a Ramada flagged hotel, office, and retail buildings, and are testing moving into new construction financing.

Whether you’ve got deals that need funding, or capital that deserves higher yields, Fritton says “give us a try, and come grow with us!

More details, statistics on past performance, and online tools can be found at PatchofLand.com.

The TOP FIVE Reasons to Consider COMMERCIAL REAL ESTATE for Your Portfolio

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By Tom K. Wilson

While many investors see single-family homes as their “bread-and-butter” investment, investing in commercial properties is an option that can also help you achieve your financial goals.

“Commercial” in its broadest lay vernacular includes multifamily apartments, however, the true industry definition separates multifamily properties (over five residential units) from true commercial, such as retail, office space, industrial, self-storage or medical centers.

I’m often asked what kinds of properties I recommend. There is, of course, no one size that fits all investors or markets. While in a normal market multifamily properties are a natural progression from single family homes, this is anything but a normal market and currently there are too many multifamily buyers chasing too few deals, so it currently has lower CAP* rates or returns than pure commercial.

Here are five reasons to consider commercial properties for your portfolio.

#1 HIGHER ROI

Commercial properties often have higher and more predictable return-oninvestment than single-family homes, in part due to the economies of scale from investing in a larger property not usually available to the small investor.

For example, a current commercial retail center that we are acquiring has an 8.2 CAP rate and a four-year internal rate of return* of 12.0%. When you can borrow money at 4.25% and invest it in something yielding 12.0%, that’s worth considering!

#2 FEWER HEADACHES

It’s generally easier to manage one large property through a professional property management firm than to manage scattered single-family homes. Also the business tenants you get in retail or office space are usually of higher quality than most residential tenants. Business tenants have higher credit/risk scores, have pride of ownership in their businesses and want to protect their livelihoods. As a result, they have an interest in taking care of the property.

Many commercial properties are NNN* (triple net), so the tenant pays most of the expenses including taxes, insurance, and maintenance making the owner’s expenses very predictable and consistent.

#3 STABLE CASH FLOW

Commercial leases are typically 5-10 years in length vs. annually for single-family homes. Additionally, commercial leases include annual bumps in rent and options to-renew. As a result of all these factors, cash flows are more predictable.

#4 NO 10-MORTGAGE FANNIE MAE LIMIT

Any loans taken by the owner or syndicate do not count against your 10-mortgage limit because they are in the name of the owning entity and not on your personal credit. This enables you to put more of your capital to work.

#5 APPRECIATION MULTIPLIERS

Unlike single-family homes, which are strictly valued based on market demand, or ‘sales comps’, commercial properties are valued as a multiple of their Net Operating Income (NOI),* which can be driven up by a good property manager’s addition of value. At a Cap Rate* of 8.0,everyone-dollar increase in annual NOI can result in $12.50 of appreciation!

Steps you can take to actively improve NOI include:

  • Upgrading the existing buildings
  • Increasing TI (tenant improvement)
  • Adding leasable square footage
  • Raising rents
  • Reducing operating expenses
  • Adding amenities
  • Adding additional revenue generating resources (ATM kiosk), and many more

Rather than wait for market forces to raise real estate prices organically, you can create appreciation using levers like the ones listed above.

ADDITIONAL BENEFITS

Of course, the five advantages of commercial real estate listed above are in addition to the usual benefits of any real estate investment:

  • Tax Benefits
  • Hedge against inflation
  • A hard asset with intrinsic value

Caveats of Commercial Investing

No discussion of commercial investing would be complete without noting a few issues that investors should be aware of.

Financing can be more challenging

Typically, the investor(s) must put down 25-30% of the sales price and finance the loan amount over a 5-10 year term with a balloon payment at the end of the term. Selling or refinancing options at that time will vary depending on market conditions. And there can be stiff prepayment penalties.

Not as Liquid

If you own 10% of a Commercial building and want to sell your interest, you can sell to your fellow investors (who usually get first right of refusal) but if none are interested, it may be difficult to get out of the investment. That is why long-term funds, like IRA money, are ideal for commercial properties.

Sale of a Commercial Property can take longer

While just about everyone wants a home, only a small percentage of the population is capable of purchasing a retail center or office building. The smaller market of potential buyers coupled with a detailed due diligence process means that the sale of the property can take longer than for a single-family home.

Syndications

Many of the challenges outlined above can be mitigated by investing with an experienced syndicator. Their knowledge, track record, and ability to qualify for the loan and manage the property, allows the small investor to participate in a high quality commercial property or to invest in multiple projects to distribute their risks.

SUMMARY

The benefits, economies of scale, opportunities for forced appreciation and higher returns make commercial properties an attractive addition to most investors’ portfolio, and one worthy of serious consideration.

For your free copy of Wilson Investment Properties article “Are Real Estate Syndications for You?” and a guide to “Commercial Real Estate Terms” please go to our website, www.TomWilsonProperties.com .

Tom K. Wilson has utilized his experience and skills acquired in 30 years of managing some of Silicon Valley’s pioneering high tech companies to buy and sell more than 2,500 units and over $130 million of real estate, including three condo conversion projects, eight syndications, and seven multifamily properties. He founded and owns Wilson Investment Properties, Inc., a company that has provided over 500 high cash flow, high-quality, rehabbed and leased residential properties to investors. Active in real estate associations, Mr. Wilson is a frequent speaker on real estate investing where his expertise and experience makes him an audience favorite. He is the weekly host of the Wed 2pm edition of KDOW’s RE Radio Live in San Francisco, the Wall Street Business Network (1220am).

*A GLOSSARY OF COMMERCIAL TERMS

CAP RATE (Capitalization Rate)

A measure of return calculated by dividing the property’s net operating income by its purchase price.

CONC (Cash on Cash Return)

A measure of return calculated by dividing pre-tax cash flow from a property by the total cash invested (e.g., down payment plus closing costs).

GRM (Gross Rent Multiplier)

The Gross Rent Multiplier is a measure of how expensive a commercial property is relative to the gross rents it brings in, calculated as: GRM = Purchase price of the property / Gross monthly rents.

NOI (Net Operating Income)

The total income from a property minus vacancy, credit losses, and operating expenses.

NNN (Triple Net)

A commercial lease in which the tenant pays three operating expenses (in addition to rent): Property taxes, insurance, and maintenance.

ROI (Return on Investment)

ROI measures the amount of return on an investment relative to the investment’s cost and is calculated as: ROI % = (Gain from the investment – Cost of the investment) / Cost of the investment.

Retire Wealthy with IRA Investing

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By Stephanie B. Mojica

Self-directed individual retirement accounts or IRAs are rapidly growing in popularity, but experts warn that it is important to only get into such an investment with proper education and professional guidance.

Kaaren Hall, owner of uDirect IRA Services in Orange County, Calif., says even after more than two decades in the financial industry and four years of running her company she too must continually stay on top of her investment education particularly regarding Internal Revenue Service guidelines for retirement accounts.

Self-directed IRAs allow people to invest their retirement funds into a variety of options outside of the traditional stock market, including real estate, land, and private notes.

“Financial literacy is not taught in schools, but our future depends on understanding it,” Hall says. “Only about 4 percent of u.S. investors have a self-directed IRA. Why? Because most investors and many advisors simply aren’t aware of it.”

But even those who are aware of the potential financial power of self directed IRAs often do not fully comprehend is the IRS guidelines of “prohibited transactions,” according to Hall.

“You’re not allowed to have any personal benefit from your IRA prior to retirement,” Hall says.

A common misconception among investors is that they can use the self-directed IRA funds to purchase real estate or other property from themselves or close relatives such as a spouse, a child, a grandchild, a parent, a grandparent and any spouses of such relatives. These transactions are not permitted under self-directed IRAs, according to Hall. However, an investor could purchase property from a more distant relative such as a sibling, a cousin, a niece, or an uncle.

“Make sure you know what you’re doing,” Hall says. “We’re here to help people so they understand the twists and turns as much as possible.”

The term self-directed in itself misleads some people because it is the IRA doing the investing, Hall adds.

“So that’s confusing because they get into trouble by maybe signing a purchase contract (in their own name),” she says. “Your IRA can’t buy an asset that you own.”

Consequently, people should wait until they actually open an account with a qualified custodian before funding it and making transactions, Hall says. Generally, a custodian rather than the actual investor should sign purchase contracts relevant to self-directed IRAs.

While representatives of companies such as uDirect IRA do not give actual investment advice due to potential legal liability, they can help people follow ever-changing IRS guidelines.

Hall, a former mortgage broker whose work history includes Bank of America and Indymac Bank, has educated tens of thousands of investors into deciding whether self-directed IRAs are right for them. She and her associates have directly worked with thousands of clients.

To learn more about self-directed IRAs, call 866-447-6598 or visit www.udirectira.com