Secure Your Future: Investing in Real Estate Through Self-Directed IRAs

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By Kaaren Hall

Do you have a 401(k) with a previous employer or an IRA?

Are these accounts invested in stock market assets? Most retirement accounts are invested in stocks, bonds and mutual funds however the Self-Directed IRA lets you invest outside the stock market.

For over 40 years you have been able to invest your retirement dollars into assets like real estate and most people don’t know about it. In fact there is about $24 Trillion in US retirement accounts. Only 3-4% of that amount is invested in what’s called “alternative assets”.

When you think about building a retirement for yourself consider the Self-Directed IRA.

When it comes to investing in Real Estate, the Self-Directed IRA allows many ways to do this:

  • Residential real estate, including: apartments, single family homes, and duplexes

  • Commercial real estate

  • Undeveloped or raw land

  • REITs (Real Estate Investment Trusts)

  • Real estate notes (mortgages and deeds of trusts)

  • Promissory notes

  • Private limited partnerships, limited liability companies, and C corporations

  • Tax lien certificates

Take Joe for example. Joe retired from his employer at the age of 50. It was a forced retirement because the company was restructuring. He spent 20 years at his previous employer putting aside 15% of his annual earnings. Now that he was “retired” Joe decided to become a real estate agent.

He noticed his own IRA was losing money and putting this money into a self-directed IRA was something that made sense to him. Joe says, “It gave a monthly boost to my IRA account through the rent money. Plus it gave me equity growth. As a self-employed person, it has given me a small glimpse of security into my retirement age. Whenever that will be.”

Right now and for the next decade ten-thousand baby boomers will reach age 65 every day! The average account value for Americans 55 to 64 years old is $103,000. You have to ask yourself is that is going to be enough to sustain you through your retirement years?

Many people, like Joe, are enjoying the tax-deferred or tax-free benefits of using their IRAs and 401(k)s to secure a better financial future.

So how do they do it? Self-Directing your retirement is a 3-step process to 1) Open an account 2) Fund that account and then 3) invest.

We have helped thousands and we can help you accomplish your self-directed retirement goals at uDirect IRA Services.

Kaaren Hall

Kaaren has helped hundreds of people self­direct their retirement savings. A native of California, she has a 17­year background in Real Estate, Property Management and Mortgage Lending. She has worked at such companies as Bank of America, Centex Homes, Pulte Homes and Indymac Bank. She’s held a real estate license in Washington, Texas and California and a Life & Health license in California.

Her company, uDirect IRA Services, LLC, offers self­directed education and services to investors, providing excellent customer service. Kaaren is a public speaker and master networker. A mother of two, she lives in Orange County.

If you have a question about how to use your IRA to self­directed you can contact us here at [email protected] or at 866.447.6598. Our website address is www.uDirectIRA.com .

Savvy Investors Earn 16%, 18%, Up To 24% On Government Tax Lien Certificates

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The Question Is; What Is A Tax Lien?…It’s Not What You’re Thinking

By Ted Thomas

Across America, investors like you are discovering a safe, secure, predictable way to invest directly with the local government and then get checks back from the local government… here’s how..

The most common question I hear is “What is a tax lien certificate?” It is truly amazing how many people are not aware of this centuries-old investment vehicle.

The United States is a country where the majority of citizens own real estate, either residential or commercial, for many the most valuable asset they own is real estate.

Even though the housing bubble in recent years forced many people out of their homes, real estate ownership is still the goal to which most Americans aspire.

One of the costs of real estate ownership which cannot be avoided is the payment of property taxes. Local governments demand property taxes so that they may pay for civil servants and for roads, library, schools, police and fire departments to name a few. These property taxes are usually levied annually. In the U.S. there are 3,000 counties and over 1,400 municipalities that are classified as tax entities, sometimes called districts.

Tax Default

What happens if the property tax bill is not paid? The county government authorities do have remedies. They could repossess the property, but unlike vehicles or other goods, real estate can’t be moved. Instead, the government places a lien on the property.

A lien is similar to a mortgage, meaning that until the amount due is paid, the property is not owned free and clear. A delinquent tax lien is considered a senior lien – the local government must be paid before any other debtors if and when the real estate is transferred or sold. The lien is not beneficial to the municipality because it doesn’t fill their treasury with the money needed to pay for city and county services. In order to get their money right away, the municipality will offer tax lien certificates for sale to the public. This simply means, the defaulted taxes are sold at auction to willing investors. Investor’s purchase tax lien certificates because the county gives the investor a high interest rate and a secure position on the real estate.

The local government challenge is…

To collect property taxes. This is usually accomplished with an annual, or more frequent tax lien certificate auction or a tax defaulted property auction, today we’re talking about tax lien certificates. When the tax lien certificate is sold, the government collects their revenue from the investor and the property owner receives a notice of lien against their property, giving the property owner time to pay the delinquent bill. The purchaser of the certificate gets the lien certificate, which is secured by the actual real estate.

In order to remove the lien, the property owner must pay the amount of the unpaid taxes plus any applicable interest and penalties. When this revenue is received, the government authority sends a check to the tax lien certificate holder for the face amount plus the amount of interest accrued.

What If The Tax Isn’t Paid?

Sometimes the property owner just doesn’t pay the tax lien certificate which represents the taxes due, for one reason or another, it may be that the real estate became part of an estate and the heirs don’t want the property – or can’t afford it. How much time elapses between the taxes going unpaid and the municipality deciding to give up on ever receiving the revenue varies by tax district.

According to county treasurers across the United States, 95 to 97 percent of all property owners pay the delinquent tax in 24 months or less. It’s rare that a property owner fails to redeem (pay) the Tax Lien Certificate, but it does happen, nationwide, every year there are thousands of buyers who end up with property for only the cost of back taxes which they purchased at a tax defaulted auction. In a subsequent article, I’ll have more about tax defaulted property auctions, meanwhile, if the property owner fails to pay taxes, the tax lien certificate holder is awarded the property in exchange for paying the taxes, the county or municipality sends the tax lien certificate purchaser a deed, giving them the fee simple right to keep or sell the real estate.

Where To Find Tax Lien Certificates

Where can you find tax lien certificates that are up for auction? Local governments compile a list of delinquent property owners on a regular basis. This list can be found in one of three places: published by the newspaper, published online, or a printed list available directly from the government office. When you obtain the list, you can also get instructions and the date of the next auction of tax lien certificates.

To review, only two things may occur if you purchase a tax lien certificate. Number 1, the property owner gets their act together and redeems the certificate, that is they pay the certificate and when they pay you’ll receive all the money you invested plus a high interest rate which could be 16, 18, up to 36%. Number 2, the property owner continues the default and does not pay and the time limit runs out and you end up with the property free and clear. The mortgage is wiped out by an act of law, that is, the mortgage is extinguished by law in every state and every county in America.

Advantages of Tax Lien Certificate investing

Tax lien certificates pay interest rates up to 16%, 18%, 24% even 36% depending on the county where you purchase, each county has its own rules and amounts they pay. Conservative investors really like tax lien certificates because they are passive investments with very low risk. In short, they are predictable, certain and secure. Watch for more details in the future…

apr12

Ted Thomas is famous for showing newcomers and investors how to earn 6 figure incomes within 1 year of completing his training program. Conservative investors love tax lien certificates because they are predictable, certain and secure and sold by local government. Tax defaulted properties are sold at oral big auctions and online. Starting bid, only the back taxes…. More information at TedThomas.com

Three Misconceptions about Japan’s Properties

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Japan’s attractive property market draws real estate investors worldwide for its high yield, affordability, rental income cash flow and safe haven economic environment. While the real estate investment arena is undoubtedly attractive, and the second largest real estate investment market in the world, Japan is also one of the countries most affected by natural disasters. Therefore, before jumping in to buy up properties, foreign investors, new to the market, often test the waters by asking about the quality of Japan’s structures and their ability to weather the storm. Investors ask, “What is the risk associated with the age of Japan’s real estate?” To answer this question, we explore the common misconceptions of Japanese properties.

Misconception #1 – Properties are Made of Wooden Structures

Some investors have concerns about the materials used to build real estate in Japan and whether or not they can withstand the force of earthquakes and tsunamis. This misconception stems from traditional wooden houses which used to line the streets of Japan in the former imperial capital. Most investors focus on buildings for the cash-flow play, rather than houses. Therefore, the concern is an out-dated concept and no longer a consideration. Furthermore, wooden houses are being steadily replaced by earthquake-resistant, reinforced concrete apartment blocks.

Misconception #2 – Properties Built after 1981 Pose Less Risk

In 1981, the Building Standards Law was revised to protect residential and commercial structures against earthquakes. In 2006, building certificates and inspections became even more regulated subjecting builders to inspections during the construction process for buildings above three stories. Because of the revisions to the Building Standards Law in 1981, some investors consider 1981 the turning point for sounder structure. Herein lies another misconception.

A building’s condition is affected by more than just its age. A properly managed accumulated funds pool can also affect its condition. With adequate funds, buildings built prior to 1981 can be retrofitted to bring them up to code by regularly renovating, repairing and re-strengthening exterior walls and taking care of unforeseen renovations. Alternatively, a newer building could be poorly managed with insufficient funds for renovations and maintenance. As you can see, investing in an older building under these circumstances could be the wiser choice to minimize risk.

As facilitators to foreign investors, we try not to source anything older than 1973. But, those that we did source were well-maintained buildings housing 50 to 200 units, showing no signs of deterioration, beyond normally acceptable and repairable wear and tear. Generally, since the cost for renovations and repairs are taken out of the building repair fund, if funds are insufficient, then apartment owners bear the extra costs. To ensure the risk to investors is minimal, when conducting due diligence on a potential purchase, we look into the status of the accumulated funds pool, renovation/repairs/maintenance history and the building management company’s handling of the collected renovation/repair funds and provide a report to the investor for an educated investment.

Misconception #3 – Properties have Just a 20 Year Life-Span

Life-span of a house is sometimes referred to as approximately 20 years, while that of a building approximately forty years. From a value perspective, this is a misconception. This life-span refers to tax depreciation not the quality of the property.

There are other benefits to an apartment investment over a house. Houses require more maintenance and can present unexpected costs, whereas, in a building, structural expenses are known in advance and covered by pre-set building fees. And, the building management company’s monthly fees normally cover all or most maintenance expenses, so there are far less surprises.

Overall, risk is greater with speculative play for capital gain such as units in Tokyo or Osaka. Investing in Japan for its monthly cash flow environment in cities such as Sapporo, Fukuoka, Nagoya and other cities with stable or growing population can result in stable returns. For highest yielding properties, investors should focus their criteria on condo units under 200 sq. ft., one to two room units, for inexpensive interior maintenance. Alternatively, some of our clients aim for smaller and older buildings on large plots of land in key locations. The strategy in this case is to sell to a developer when the building becomes too expensive to maintain, in exchange for either compensation at a profit, or a new unit in a new residential project built on that land. The downside is that these units only have a small fraction of land attached to them, so appreciation potential is lower.

Priti Donnelly, Sales and Marketing Manager, Nippon Tradings International, [email protected]

Priti Donnelly

Priti Donnelly is the sales and marketing manager at Nippon Tradings International, a proxy and buyers’ agency representing foreign investors with purchasing, selling and managing real estate in Japan. She understands the importance of transparency in today’s international market. Through her insight, she focuses on breaking barriers and helping investors feel confident about their overseas property investments.

Phone: +1 226 336 4097 / +81 3 4520 9262
Email: [email protected]
Website: http://www.nippontradings.com

Don’t Stop Marketing when Times are Tough (and the Going Gets Rough)

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By Sharon Vornholt

If there is one piece of advice I could give every struggling investor who is trying to stay afloat in today’s challenging market, it would be “don’t stop marketing”.

I know that’s what most people do. But it’s during these times you need to actually step up your marketing. You can’t stay in the game, if you don’t play.

Let’s put it another way.

When you can’t seem to get a deal no matter what, most investors stop marketing to conserve cash. But I can tell you that your business will die a quick and painful death if you do this. You may have to change the way you’re marketing, but whatever you do, don’t stop marketing when times are tough.

So What Can You do If Your Business is starved for Cash?

There are a lot of things you can do but here are some suggestions:

  • Networking is free (or almost free). Get out every day and talk to people. Be sure you have business cards. You can get affordable business cards at Vista Print.
  • What can you cut out to have money for marketing over the next couple of months for direct mail and other things that have a cost associated with them? Do as much marketing as you possibly can.
  • Can you partner with someone? Offer to go look at houses and make offers for someone that has cash for marketing, but maybe has small children and little time.
  • What about spending the day in eviction court? You’re sure to find some tired landlords there.
  • Get a list and call prospects. You’re already paying for your phone, so why not put it to good use?
  • Go driving for dollars. Do some door-knocking to find out who lives in that vacant house.

There are a lot of marketing strategies that cost nothing more than your time.

I can tell you this for sure; it’s these times when “average” investors close up shop. Just keep plugging away. Don’t stop marketing and you will come out way ahead of your competitors over time.

Spend Your Cash Wisely when Money is Tight

This is a time when you need to be smart with your money and your resources.

Here are some more tips for you:

  • Make sure your lists are laser focused. Don’t get too broad. You want to make each mail piece count since they are costing you money.
  • Don’t forget about follow up. Go back through all your leads in the past 12 months. Look at all those who said no. Maybe they are ready to say yes now at the end of the year.
  • Get to work on that stack of direct mail. Do you know someone that has TLO or another similar service that might split the cost for one month to check all of those returned mail pieces?
  • Are there additional real estate niches where you look for opportunities? Think tired landlords, pre-foreclosures, houses with code citations, etc.
  • Remember time and circumstances change all things. This is certainly true of motivated sellers. Just because a seller told you no before, they might just have meant “not now”.

Don’t Stop Marketing During the Holidays

This is probably the biggest mistake investors make. They stop marketing during the holidays. You can take advantage of that, but doing the opposite of what everyone else is doing. This is a good time to look for opportunities where other investors dropped the ball.

Final Thoughts

It’s great to do a marketing brain dump every now and then. Maybe there is something you used to do that you stopped doing. Do whatever it takes to stay in the game.

Get creative and see what you can come up with.

Sharon Vornholt

Sharon Vornholt is the owner of Innovative Property Solutions, LLC in Louisville, KY.

Sharon owned and operated a successful home inspection company for 17 years. She began investing in real estate in 1998 and became a full time real estate investor in January of 2008.

Sharon specializes in wholesaling, and is also an experienced landlord and rehabber.

In addition, Sharon is an internet marketer and also writes articles for several national real estate sites. Sharon is the author of a popular real estate blog called the “Louisville Gals Real Estate Blog”. For your FREE REPORT “Probates and Absentee Owners: Your Fast Track to Real Estate Riches”, stop by her blog at: http://LouisvilleGalsRealEstateBlog.com.

The Millionaires Investment Group

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Michael Poggi, President of The Millionaires Investment Group, llc. Professional investor, National Speaker, Educator, Consultant and Motivator shares his vast knowledge of how YOU can benefit personally and professionally by learning about the hottest opportunities in investment Real Estate AND turn key business franchise opportunities inside WALMART, all tax free!!!

WHO IS THE MILLIONAIRES GROUP ?

20 year old investment network started by Michael Poggi – Focused primarily on finding investment strategies in many sectors including Real estate, turnkey franchises, private lending and much more. The group is composed of accredited investors, Private institutional funds, IRA investors. There are over 1800 Active Investors Nationwide and 10,000 Members. They teach secrets about investing tax free using IRA’S and 401k plans. Investors like you partner with the group and with other members if needed in new construction, the hottest turn-key proven franchises, and vacant lots in resort communities using cash, IRA’S and 401 K plans.

Things to know:

There’s a secret that the richest Americans use to create and keep their wealth. They use tax-deferred or tax-free dealings in real estate and other exceptional investments. If you own an IRA, or if you are thinking of opening an IRA, you have the same opportunity to unlock that secret and build wealth for yourself.

Smart investors are earning 15 to 20%, or more, inside their Self-Directed IRAs. The money in their IRAs compound tax-deferred or even tax-free for as long as the IRA is in existence.

Most people realize that they need to save for retirement, but have a tendency to place this on the bottom of their “to do” list. It’s hard to think about the future when the daily issues of life are enough to fill our time. The sooner you start planning, the better off you will be. What do you have to look forward to?

The senior population is dramatically increasing, especially as the baby-boomers enter retirement age. These seniors are living a healthier lifestyle with better medical care, leading to a longer life. A longer life span means more money is needed to provide a comfortable lifestyle in those later years. Where will this money come from?

Social Security benefits will barely account for enough to provide for even basic necessities. If you have other income, up to 85% of those benefits can be taxed by the federal government. If you begin taking the benefits before age 66, your benefits will be lowered permanently. With the increasing number of retirees pulling money out of the Social Security system, there are concerns that the system will run out of money for future generations. Can you depend on Social Security for all of your expenses?

What is a Self-Directed IRA?

A Self-Directed Individual Retirement Account is an IRA that requires the account owner to make investment decisions and investments on behalf of the retirement plan. IRS regulations require that either a qualified trustee or custodian hold the IRA assets on behalf of the IRA owner. Generally the trustee/custodian will maintain the assets and all transaction and other records pertaining to them, file required IRS reports, issue client statements, assist in helping clients understand the rules and regulations pertaining to certain prohibited transactions, and perform other administrative duties on behalf of the Self-directed IRA owner for the life of the IRA account. Self-directed IRA accounts are typically not limited to a select group of asset types (e.g., stocks, bonds, and mutual funds), and most truly self-directed IRA custodians will permit their clients to engage in investments in most, if not all, of the IRS permitted investment types. Some of the additional investment options permitted under the regulations include, but are not limited to, real estate, franchises, partnerships, private equity, etc. Self-directed IRAs, by allowing a wide range of investment choices, improve the account owner’s opportunities to diversify their IRA portfolio(s).

Why should I have a Self-Directed IRA?

The government is running out of money and encourages people to provide for their own retirement by offering HUGE tax advantages to anyone investing through an IRA. With a self-directed IRA, you can invest in real estate, something most people can’t do with a traditional IRA.

A self-directed IRA allows you to invest your funds yourself into investments like solid long term real estate, which means you can earn a lot more for your retirement than you would with a traditional IRA.

Four Basic Facts about Self-Directed IRA Real Estate Investments.

  1. Limited custodial participation and reduced custodial fees. Means you have more control and can earn more money.

  1. The difference between traditional IRAs and self-directed IRAs is the breadth of options for investing. Traditional IRAs only permit investment options in approved stocks, mutual funds, bonds, and CDs which are usually not the best choices.

  1. A self-directed IRA allows you to have complete control over your funds, with most people opting to be custodians of their accounts.

  1. Self-directed IRA real estate investments can be very profitable if handled and managed correctly, which is why many people decide to pursue these alternatives to constrained, traditional IRA investing. Before setting up a self-directed IRA, you should contact us for help with the right type of IRA and the right investment strategies.

Self Directed IRA real estate investments make good sense. Not everyone has them, because not everyone is aware it is possible to have them. If your financial advisors only advise you to put your IRA money into stocks and bonds, you may not know anything about Self Directed IRA for real estate and businesses.

You may be someone who doesn’t have the time to spend educating yourself on other areas that the IRS allows you to invest your tax-free or tax-deferred retirement funds. In this article, you can learn a few things about investing your IRA money in real estate and businesses.

There are eight things you need to know when considering investing in real estate with a self directed IRA. They are listed below:

1. Your IRA cannot purchase property that is already owned by you or a disqualified person. A disqualified person is your spouse, parents, grandparents or great grandparents, children and their spouses, grand children and great grand children and their spouses. There are a few others, which you can find in IRS Code Section 4975.

2. You (or any disqualified person from the list above) cannot receive indirect benefits from property owned by your IRA, such as taking a vacation in resort property or renting office space in commercial property that your self-directed IRA owns.

3. Your IRA needs to be titled in the name of the IRA, NOT in your personal name.

4. The real estate in an IRA doesn’t have to be 100% funded from your IRA. You can partner with a friend or family member. For example, let’s say you found some property for your self-directed IRA real estate account, and you need $100,000 in order to purchase it. However, your IRA account only has $25,000. In this case, your friend could provide the other $75,000. Your friend would own 75% of the property and your IRA would own 25%.

5. If your self-directed IRA uses financing to purchase real estate, the loan must be a non-recourse loan, and your IRA must pay unrelated business income tax or UBIT.

6. All expenses, such as maintenance, improvements, property taxes, and any other expenditure to own and/or maintain the property must be paid from the self-directed IRA. No personal funds may be used for any expenses.

7. All income from the IRA must also go back into the IRA account. You may not deposit any money, such as rental income into your personal account.

8. You will need someone like us to help you fill out all the paperwork required by the IRS. We are very familiar with each of the points above. We can help you through the entire process, even the most important part of finding the right investment strategies to bring you great returns. You can find your own properties, franchises or strategies, but unless you have lots of experience and you are an expert, your best bet is to leave that part to the professionals like us. We have several investment strategies available for you to participate in either with us as a partner or on your own.

CALL OUR OFFICE FOR MORE INFO TO HELP YOU GET STARTED

THE MILLIONAIRES GROUP

954-306-3586

WWW.THEMILLIONAIRESGROUP.COM

Investigate 6 New Lead Sources for Your Real Estate Business

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By Leon McKenzie, CEO, US Probate Leads

According to Forisk Research, US Housing starts are projected to continue at 1.5 million a year all the way to the year 2024. This tremendous growth is great for the overall economy of the country. However, it will likely increase the competition for the stakeholders within the real estate industry. If you are a realtor or real estate investor, this is something that you need to be prepared for. Everyone wants a share of the profitable real estate pie.

But you shouldn’t fear. Increased competition does not mean that you have to lose money. You just have to find new ways to get better real estate leads for your business. The higher the quality of these leads, the more revenues you are likely to generate when they pan out.

So, where do you even begin? How should you go about investigating new lead sources for your real estate business?

As it turns out, there are plenty of options if you look in the right place.

Possible New Leads Sources for Your Real Estate Business

  1. Your Local Attorneys

Whenever any major legal life changes occur, people tend to consult attorneys for help. We are talking about major issues such as bankruptcy, divorce, death and the like. And while these life changes may not be good for the clients of the attorneys, they can be very good news for your business.

Think about it: when someone declares bankruptcy for example, that person will need to get rid of some properties in order to comply with the legal conditions that arise from being in such a difficult situation. Some of those conditions may require one to sell a home in order for the creditors to be paid.

As a realtor or real estate investor, attorneys who handle major life issues for their clients can provide a steady source of leads for your business. Your business presents attorneys with the opportunity to further help their clients to sort out their financial problems in the easiest way possible.

It’s therefore in your best interest to take the time to establish a connection with the attorneys in your locale. Let them know what you do for a living, and then make it clear that you are available to do business with them and their clients. If you establish a good rapport with your local attorneys, you will become the go-to person when they need to help their clients get rid of their properties.

  1. Home Cleaning Companies

Some people hire home cleaning companies simply because they are not in the mood to clean their homes. But do you know who else likes to hire professional cleaners?

Sellers, that’s who!

When people are set to put up their homes on the market, they are more likely to hire professional home cleaning companies. Professionals are in a better position to clean the homes properly.

Once a home is put up for sale, then the chance for you to sell that home on behalf of a client as the lead realtor, is gone. If you are a real estate investor, then you need to be prepared for the competition from other potential buyers who may also be interested in the property.

Home cleaning companies are a good source of real estate leads because they will help you discover which homes may possibly be up for sale before the sign or listing goes up. This gives you the time to contact the homeowners and offer to either represent them or to buy the property off them quickly.

So, the next time you come across a professional home cleaning company in your area, pay them a visit, and start talking to the relevant parties. Leave your business card too. The casual chats you initiate may end up leading to a sale or two for you.

  1. Property Managers

Some homeowners are absentee landlords/ landladies. They want all the benefits of leasing out their properties without the headaches. For that reason, they hire property managers to manage their additional homes.

If you are a realtor or real estate investor, then property managers are good professionals to have in your corner – especially if you live in an area with lots of investment proprties. At some point, some of the homeowners will get tired of owning the additional properties and may end up selling them to recover their monies.

If you did your due diligence and established a good relationship with the property managers in your locale, when their clients need to sell their homes, you will be the first person to know. This will ensure that you get your pick of prime properties that will enable you to get the best value for your money.

  1. Consumer Loan Companies

When people are denied loans by banks, they tend to go for loans from consumer loan companies. In such cases, it is safe to assume that the clients of these companies have a high debt load, poor credit, and are possibly in financial distress. This assumption isn’t far-fetched at all. After all, according to the 2015 NerdWallet survey, the average American household has a debt of $130,922!

So, when someone in financial distress cannot qualify for a regular loan, it is safe to say that the person in question may be looking to make lifestyle changes. In the event that such a person has a home, he or she may be very eager to downsize in order to reduce the overall debt.

When you run a real estate business, consumer loan companies can be a good source of information on potential sellers or clients of homes, depending on whether you are a realtor or investor.

Take time to talk to the company administrators and inquire on the list of their clients. The worst that could happen is that you get a “no” because the company does not divulge information on their clients. Alternatively, someone working there may mention that they have clients desperate to sell their properties and want some help. Either way, it never hurts to ask.

  1. Nursing Homes and Retirement Communities

As of 2014, there were at least 15,600 nursing homes in the U.S. All these homes had a total of about 1.7 million licensed beds.

It’s important for you to consider senior citizens when you are investigating new lead sources for your real estate business. Many of the retirees living in nursing homes and retirement communities may have some property that they acquired during their working life.

When you consider that the average 55-64 year old only has $45,447 saved up for retirement, you can see why it would make sense for senior citizens to sell their homes to boost their savings. And this is where you come in.

As a realtor or real estate investor, you could take the time to talk to the members of the retirement communities within your area and create awareness of your services. Let them know how you can be of service to help them improve their financial situation. Leave a business card to anyone who’s interested and then adopt a wait-and-see attitude.

Do not be surprised to see multiple people contacting you to help them get rid of their properties. Many of them could have been waiting for someone helpful to come along and help them sell a home they had invested their time, money, and emotions in.

The Trouble with Investigating New Lead Sources…

Your local attorneys, home cleaning and consumer loan companies, property managers, and retirement homes and communities are all great sources of new leads for your real estate business. Most industry players who just happen to be your competition would probably not think of them. That said they do have their fair share of challenges:

  • Not every lead source will be willing or have the time to share the information that you seek. Some will cite client confidentiality issues while others just can’t be bothered. In such situations, all your attempts to find the best leads will be fruitless.

  • It takes a certain amount of social skills to network and form mutually-beneficial relationships with other professionals who can provide leads for your business. If you have social anxiety, prolonged contact to keep the relationships going can be a hassle. There is also the fact that it takes a lot of effort to establish the business relationships in the first place. If you have neither the time nor the energy, these lead sources won’t work out.

Probate Leads Mining Offer the New Real Estate Lead Source to Beat!

Have you ever taken the time to consider how many people actually die and leave their properties behind?

A lot as it turns out!

There are at least 2.6 million deaths annually in the USA.

And by 2018, there will be $15 trillion worth of real estate settlements that will run through the Superior courts. And 70% of them will be in form of real estate.

It’s also worth noting that 50% of executors live out of the county where the probate process takes place.

Think of the possibilities!

Probate lead mining companies offer you the chance to explore a new lead source that not many real estate industry stake holders consider. But unlike the other lead sources, you don’t have to deal with the hassle that goes into getting the information that you want. All you have to do is buy the already-qualified leads and you will find highly motivated executors at the other end of the line.

So, when looking for new lead sources, definitely consider probate leads. Probate lead mining companies like US Probate Leads offer the best solution if you are looking for new lead sources for your real estate business.

US Probate Leads

Leon McKenzie

Chief Executive Officer

Leon cofounded US Probate Leads more than 12 years ago and has witnessed its growth during that period from a one city lead provider in the probate space to the only national provider of probate leads for virtually every county in the country.

Leon likes to point out that US Probate Leads is the only company providing Probate-related Real Estate-related leads to Investors and Realtors based on data collected directly from individual probate courts in virtually every state. This has been achieved by building a National Network of Researchers that visit each county one time each month. Leon’s team processes this incoming data and makes it available to individual subscribers for their use in reaching out to highly motivated property sellers.

Email: [email protected]

Web Site: www.usprobateleads.com

Contact Details: Leon McKenzie
8108 Penobscot Ln

McKinney, TX 75071

(877) 470-9751

Why Coworking is the Future of Office Space

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Coworking spaces seemed like a niche market just ten years ago. Now they are popping up everywhere, with coworking spaces in Cincinnati, New York, London, and cities across the globe. More professionals and small businesses are starting to see the value of working in a shared office space. There were more than 1.2 million coworking members in 2017, and this number is expected to grow considerably in the coming years.

The growing popularity of coworking is due to several factors, but at its core, it is a response to the fact that traditional office environments were not meeting the needs of many of today’s workers. The following are a few of the reasons why coworking is going to continue to grow and become more popular.

An Answer to Unemployment or Underemployment

In many industries, traditional jobs are no longer available or necessary to a business. This has led many to strike out on their own and find their own work.

In the wake of the 2008 financial crisis, a number of companies went under and people lost their jobs. As a result, the number of people working in co-working spaces increased. At a time of unemployment or underemployment, coworking is often a viable solution for professionals looking to take control of their career.

A Resource for Freelancers

The nature of work is changing, and there is no clearer sign of this than the increase in the number of people who work as freelancers. This trend is expected to continue, and as it does, coworking spaces are going to be a vital resource for independently employed workers.

For freelancers, a coworking space is more than just a place to complete projects. Coworking spaces are more affordable for contract employees who need an office space away from the home. Beyond that, shared offices provide them with resources and networking opportunities that would not be available if they worked in a space on their own.

A Way to Fill Floor Space

Developing coworking spaces has also become a popular option for property owners and landlords. As traditional businesses have struggled and gone out of business, the idea of converting buildings to coworking spaces is an effective way to fill empty floor space.

As the market for coworking grows, you are going to see more property owners looking to convert traditional offices and other structures into coworking spaces. In 2016, there were just over 11,000 coworking spaces. This was up from a mere 436 in 2010, and the number is projected to grow to beyond 26,000 by the year 2020.

Providing Personal Connections

One of the downsides for freelancers and independent workers is that they miss the connections they develop with other people in the workplace. For many coworking members, sharing the space with other people is one of the most significant benefits.

A coworking member may work on his or her own, but they still have people with whom they can interact. Furthermore, coworkers often find the relationships to be beneficial to their work. Collaboration between different members is a common part of the coworking experience.

While ten years ago, coworking may have seemed strange, it is now the new norm for freelancers, startups, and large businesses. These shared offices offer many benefits, and are only expected to grow in popularity. If you’re looking to change your every day routine, joining a coworking space is a great way to open yourself (and your business!) up to new opportunities.

7 Tips for Nailing the Negotiation Process

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By Sharon Vornholt

If they were to be honest, most investors would tell you they don’t really like negotiating. They would also tell you they aren’t terribly confident when it comes to the whole negotiation process (especially in the beginning). However, this is one of the most important skills needed to be successful as an investor.

Why Is It So Uncomfortable?

When the subject of negotiation comes up, there are inevitably some people that will tell you negotiation comes easily for them and I’m sure that is true. However for most people, that just simply isn’t the case. We aren’t born to be good negotiators; it’s a skill we develop. Whether it is easy or not, the negotiation process is something that everyone can learn with a little practice.

My First Time

My first time might be called a “failure to launch”. When I bought my first property I wasn’t even able to negotiate the deal. I was terrified. The person selling the house was a member of my REIA group; a man known to be a very intimidating “in your face” investor. I was at least smart enough to know I didn’t stand a chance against him. So I did what a lot of newbies would do, I had someone else do my dirty work. A realtor friend from that same investor’s group negotiated the deal for me.

When the seller (who was also an investor) wanted to talk to me personally because he didn’t like the way the negotiations were going with the Realtor, I was so scared I refused to talk to him. I was pretty sure it wouldn’t end well for me. After a little “back and forth” on the price, my realtor friend AKA the negotiator refused to back down, and I got my first deal at the price I wanted to pay. Watching her in action was when I learned how to stand my ground with this type of investor. I never had to have someone else do the negotiating for me after that first time.

There is No Substitute for Practice

Things are different now. I don’t have any problem negotiating deals today, but it was a learning process that a lot of new investors will need to work through. Do I like negotiating? Not really.

An investor friend told me something a long time ago that I have always remembered. We were talking about negotiation and he said, “If you are not embarrassed or at least uncomfortable by your (low) offer, then you have just offered too much for the property”. That was a lesson I have never forgotten.

So What Exactly is Negotiation?

Simply put, negotiation is when two or more people try to reach an agreement about something. When you are a real estate investor this will almost always involve the sale of a property. Negotiation is not only about money. It might be about “terms” or something else the seller needs. Regardless, at the end of every negotiation, both parties should feel like they won. When everyone leaves the table feeling good you have just completed a successful negotiation.

Sometimes You Just Can’t Agree

There are times however when you just can’t make a deal come together. I have learned over the years that when this happens it’s usually for the best. When you are dealing with someone that has a large list of objections, can’t make a decision, or you just can’t seem to reach an agreement with them, this is almost always a red flag. This is the same person that will either have buyers’ remorse after signing the contract or you will hear from a hundred times after the closing.

Here Are 7 Tips for Nailing the Negotiation Process

No matter how you feel about negotiation, I have some tips that will make the whole process a little bit easier.

  1. Always do your homework. Whether you are buying or selling a property, know what the comps are for the area.
  2. Know your numbers. How much will the repairs cost? (no guessing here) What is a realistic ARV (after repaired value) for the property? Having all of this information will be invaluable as you try to negotiate the deal.
  3. Know your desired outcome. Knowing what you must have from the negotiations is essential. What’s more important to you; the price or terms (or a combination of both)?
  4. What is your exit strategy? You need to know what this is the day you buy the property. Your exit strategy will affect how much you can pay for the property.
  5. Find out what the seller really needs or their true motivation. Be prepared to really listen to the other person. In addition to the cash, is there something else that they really need? Closing Costs? Moving Expenses? Maybe they just can’t face cleaning out “mom’s” house. There are many times the seller will take less money for the property if you can solve another problem for them.
  6. Don’t beat up the other person to get your way. There is a give and take in any negotiation. At the end of the day, both parties need to feel like they won in any negotiation. Remember that getting top dollar may not be what they really need to feel like they “won”.
  7. Realize that there will be times that you will just need to walk away. In fact, sometimes that is the only solution.

Remember that most great deals are created, not found. The money is in the follow up. Sometimes negotiation takes a while, so follow up with all those sellers that say no. In many cases no just means, “not now”.

Know When to Fold’em

This brings me to my next point. Know when to walk away!

As Kenny Rogers says in his song The Gambler: “You have to know when to hold’em. Know when to fold’em.” I’d say that is pretty good advice when it comes to real estate.

Author: Sharon Vornholt

Sharon Vornholt is the owner of Innovative Property Solutions in Louisville, KY. She has been investing in real estate for over 15 years. Sharon is the creator of the Louisville Gals Real Estate Blog, and the popular podcast “Let’s Talk Real Estate Investing” which you can find on iTunes. She is also a mentor and coach who loves teaching others how to succeed in this business.

If you’d like to find out more about Sharon’s real estate coaching and mentoring programs, you can reach her at [email protected] 

For your FREE REPORT “Probates and Absentee Owners: Your Fast Track to Real Estate Riches”, stop by her blog at: http://LouisvilleGalsRealEstateBlog.com.

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From Rehabbing Single Family Homes to Renovating a Hotel

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Featuring Stacee Nelson

 Interview by Linda Pliagas

Throughout the years, I have met many people at our live events throughout the country. After a while, you begin to know some on a personal level and begin to follow their progress as an investor. When I met Stacee Nelson years ago, she was busy rehabbing a single family residence in Santa Barbara. The project was a major rehab and the property was stripped down to the bare bones. Nelson is not one to shy away from complicated deals. She takes on projects with certainty and confidence. It’s been interesting to follow Nelson through her progression from rehabbing single-family homes to her risk-taking efforts in purchasing water-front properties and an REO tape, and now even a hotel. We recently caught up with Nelson to discuss her entry into the hospitality market with her recent hotel acquisition in Texas.

How long have you been investing in real estate, in general?

I purchased my first condo when I was 22 and then didn’t invest in anything for a long time. When I was living in Germany I started going to real estate auctions at the courthouse. My friend was buying properties to renovate and hold. I tagged along. In 2011, living in Santa Barbara, I began my formal education in real estate investing and purchased my first flip house in May of 2012.

I know you started flipping properties and I even saw one of your projects in Santa Barbara a couple of years ago. What attracted you to the hotel niche?

The idea of renovating an empty building into a small boutique hotel was initially the idea of my business partner. At the time we were looking for alternative passive income opportunities as well as ways to create a positive impact on communities. An opportunity presented itself in the form of an empty 15,000 square foot building directly on the town square in Gonzales, Texas. The town was keen to redevelop their downtown which made for a win-win opportunity.

Was it easier to take on the challenge and expense of a hotel rehab after doing many single-family home deals?

Initially we thought it would be a comparable project, just larger in scope. What we learned was that renovating an empty building into a hotel with individual plumbing, HVAC, cable, etc. was far more complicated and costly than anticipated. Certainly having a background in single-family home renovations was crucial in the planning and budgeting, but we were surprised by the sheer volume of issues that arose during the construction phase. The next one will go much more smoothly as a result of the number of…lessons we learned!

Tell us about the hotel. Where and how did you find it?

My business partner has a long-time family friend living and investing in the town. He made the initial introductions to the town’s economic development council who were very interested in supporting business growth in the area. Their support was a critical factor in the decision to purchase in Gonzales, Texas. We toured numerous vacant buildings in the area until we found one large enough and with a perfect location directly on the town square.

How long did the rehab take? Did the entire property have to be worked on or only a section?

The rehab took over a year to complete. There was a number of delays in the project when our initial contractor was removed from the project. Critical in the process, and one of our important lessons from this project, was to have a project manager on site during the construction phase. The volume of issues was simply magnified by 100 versus a single family renovation. Our hands-on project manager made the difference in our ultimate success and project completion.

To provide an idea of the complexity of a project like this: the smoke and fire alarm systems had to be coordinated with the installation of electricity and plumbing (water sprinklers), the HVAC system required coordination in timing with the electrician, drywall installer (ceiling vents) and the roofer (where the systems are housed), the water coming into the building had to be separated between the hotel and the restaurant located on the ground floor, and the elevator turned into a complicated project all by itself.

What was the biggest lesson you’ve learned from this transaction?

Rather than give one, I’m going to provide a few lessons we learned from this project:

  • For large projects, invest in a project manager who is on-site and regularly reporting on progress
  • Have the contractor regularly send pictures and review before progress payments are made
  • Necessity of a detailed project plan and budget agreed, in writing, by the contractor. We thought we had sufficient detail in our initial project summary based on our housing rehab experience. What we learned is you can’t be too detailed oriented in the budget and planning phase. The more detailed the budget and contractor commitments are, the better. Include a split between labor and materials so it is very clear for both sides, especially when you choose materials. Have the contractor sign the agreements
  • Budget sufficiently for contingencies. The larger and more complex the project is, the greater the likelihood for additional unplanned expenses
  • Have an agreed process for change orders that includes approving changes and costs before the work is completed

How is the hotel performing now? What are your goals with the property?

The hotel looks fantastic. The reviews of the guests who have stayed there are overwhelmingly positive. While we positioned the boutique hotel to provide executive style accommodations for the local oil industry, the majority of our guests thus far are visiting Gonzales, Texas for the regional rodeo events, the hot here the first shot of the Texas Revolution was fired.

In addition to hotels and single-family homes, your company also invests in Marina and resort properties around the world. That sounds very exciting!

Yes! We looked at a variety of different passive income and commercial real estate opportunities and decided that marina and resort properties were an ideal opportunity: It is a relatively untapped market segment with a few big players and the rest mostly individual marina owners which means opportunity to add value to struggling owners; it combines real estate with business; it provides regular passive income; and marinas and resorts tend to be a happy place for people, thus our motto: Invest in something fun!

Stacee, I’ve personally seen your growth as an investor the past five years that we’ve known each other, and let me just say how proud I am of you! I know you left the corporate world years ago to become a full-time real estate investor. You made it happen! Can you share some inside tips for others who want to leave their corporate job and be their own boss through real estate?

The process of becoming an entrepreneur has been wonderful as well as challenging, and even scary at times. There are a number of factors which have been critical in getting me this far:

  • Have a clear vision of what you want to do and achieve and then give it your all. Be tenacious in your pursuit, have faith in yourself and your vision, and do not give up! It will be difficult at times, and it will all be worth it in the end.

  • Have a source of income and / or savings to get you through at least a year of living before you leave your job. In my experience, everything takes longer than expected in real estate. Plan for that.

  • Surround yourself with the people you want to be like. For me that was successful entrepreneurs, business leaders and real estate investors from whom I could learn and to whom I could add value.

  • Partner with other investors who have a similar outlook on how you want to do business. I rarely do a deal alone. Sharing the project profits is well worth it to have partners with whom to share ideas, issues, opportunities and to raise capital.

  • Get educated before jumping in. I went to countless seminars and trainings to understand not only various real estate investing strategies but also marketing, asset protection, running a business and personal development.

  • Have a mindset of helping others achieve their goals, and understand that helping others first invariably leads to you getting what it is you desire.

  • Consider that 50% of something is better than 100% of nothing. I work with a lot of private investors. Sometimes the cost of capital is very high for a particular project. If it’s the difference between doing a deal and not, I take the higher cost of capital with graciousness and gratitude and get the deal done. The next one will be easier.

  • Work with honor, fairness and gratitude. BE the person people want to do business with.

  • And perhaps my biggest lesson so far is to simply ask each day ‘what do I desire to have or be or contribute today?’ or ‘What do I want to create today?’, and then be ready and open to receiving it. Once I understood the critical part in the process was asking without answering the question and being open to receiving what I asked for, my business expanded in incredible ways.

  • Have fun!

What’s next for Stacee Nelson and her numerous realty companies?

Going forward I’m focused on three areas in real estate: acquiring marina and resort properties, purchasing REOs in bulk nationwide to fix and flip, and contributing to the development and expansion of the Cashflow Divas, an organization dedicated to helping women achieve their financial freedom goals through passive (and active) income investing and financial literacy.

Stacee Nelson

Stacee Nelson is a Fund Manager for Purple Rooster Holdings, LLC, a private equity fund that purchases distressed residential properties and notes. As a real estate investor, she has purchased and turned around multiple single family residences, residential and commercial notes, and hotels. She owns investment properties in several states and has successfully raised millions of dollars in private capital over the last few years.

​In her current activities in real estate, Stacee advises and collaborates with other entrepreneurs and investors in optimizing cash flow, deal structuring, raising capital, and having multiple streams of income to support financial independence.

VERDICT: GUILTY!

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By Kathy Kennebrook (The Marketing Magic Lady)

“If you were arrested for being a real estate investor would there be enough evidence to convict you?” I was once asked! I wholeheartedly responded with a resounding, “YES!” You must be able to do that which makes you stand out from your competition. As you begin your campaigns as part of your overall marketing strategy and goal, continue to diligently test and track results as you go. You MUST be able to determine what marketing tools work best for you in your market place in order to draw the highest number of motivated sellers to your real estate investing business.

People often ask me, “What is the best way to find motivated sellers and buyers?” My response is to do that which your competition will not and do a lot of it. Dare to be different in your approach to locating motivated sellers. Analyze, discover and continue to rediscover the best combination of marketing methods that will generate the highest number of motivated sellers for your business. Develop three to five marketing techniques that give the very best lead-generating leverage possible and devote your resources to those marketing techniques which net the very best results. As simple as it may sound—don’t spend time on something that is not productive.

Constantly test and track new marketing techniques since your market and your business will continue to change over time. In most cases, change IS good, especially if YOU plan that change. Spend time listening or reading about those who have come before you and developed marketing strategies that draw high numbers of motivated sellers to you. Spend your time and energy constantly seeking new knowledge about new combinations of marketing methods to create even more leads. Pursue innovative marketing methods in your business to bring you the highest number of motivated sellers. Be innovative. You’ll get “status quo” results if you stick to the status quo!

Don’t be afraid to use unusual types of marketing products such as florescent orange or pink business cards, post cards or signage to attract sellers. Use t-shirts in your business and wear them all the time. We even had a t-shirt made for our German Shepard dog. When we would take him for a walk people knew what we do for a living. “Wrap” your vehicle in signage and be sure to include a web site address. Implement several different ways to attract sellers since you will need to reach your market in a variety of ways.

Direct mail is another essential tool to use to attract lots of motivated sellers. This is a method most of your competition is not using in their business. Implement mailings on a residual basis so you are in constant contact with these sellers. When their circumstances dictate that they do so, they will want to sell to you first, even if they have been contacted by someone else in the meantime, since you have taken the time to build credibility with these sellers. Use lumpy mail pieces in your envelopes to entice your reader to open the envelope and read your message. Design your direct mail piece so different that it demands people’s attention, so it gets opened and read.

Don’t be worried about people who make negative comments about you or your marketing methods. You will be the one who will get “the last laugh” all the way to the bank with the profits from your real estate deals. Throw your business cards out into the bleachers when your children’s team scores a point. Give business cards to everyone you deal with on a daily basis. Write an article on real estate and submit it to your local newspaper. Offer to do a free talk on real estate for your local radio station or your local library.

Become a local expert in the real estate field and sellers will seek you out first when they need to sell.

A marketing genius once said, “Perception is more important than reality.” People are more comfortable dealing with someone they perceive to be an expert in their field.

Most importantly, absolutely KNOW what your competition is doing. Literally track their every technique. Research and find out all that your competition is doing. Knowing about your competition gives you the ultimate edge over them. The more you know about your competition, the better idea you will have about your market. One of the best ways to find out what your competition is doing is to join local associations or clubs where you are likely interact with them.

There are lots of great ways for you to stand out in your business. Don’t be afraid to be different. Although you will still use some tried and proven marketing techniques, those who are willing to take a little risk are the ones who are the most successful.

Believe me when I tell you, some of these lessons come from difficulties, pain, and even a couple of failures along the way. But once you make a mistake, never make that same mistake again! Different gets attention and that’s what you want, to get the attention of sellers who need your services.

Very simply, if you don’t let people know that you buy and sell houses, you won’t! Dare to be different in your approach to finding motivated sellers and buyers.

So when someone asks you, “If you were arrested for being a real estate investor, would there be enough evidence to convict you?”

Your VERDICT must be: GUILTY!

Kathy Kennebrook

Contact Info:

Kathy Kennebrook
Dagger LLC
P.O. Box 14343
Bradenton Fl 34280

941-792-5390
941-795-6887 (fax)
[email protected]

Kathy Kennebrook is the ultimate success story. She spent several years in the banking industry before discovering the world of real estate. After attending some real estate seminars this 4 foot 11 mother of two got really excited and before you know it she’d bought and sold hundreds of properties using none of her own money or credit.

Kathy holds a degree in accounting and has co-authored the books- The Venus Approach to Real Estate Investing, Walking With the Wise Real Estate Investor, and Walking With the Wise Entrepreneur which also includes real estate experts Donald Trump, Suze Orman, Robert Kiyosaki, and Dr. Wayne Dyer. She is the nation’s leading expert at finding highly qualified, motivated sellers, buyers and lenders using many types of direct mail marketing. She is known throughout the United States and Canada as the Marketing Magic Lady. She has put together a simple step-by-step system that anyone can follow to duplicate her success.

Kathy has been speaking throughout the country and across Canada for over 14 years and has shared the stage with Ron LeGrand, Donald Trump, Dr. Phil., Dan Kennedy, Mark Victor Hansen, Ted Thomas and Suze Orman to name a few.

Kathy is going to share with you how she generates a seven figure income by mailing a handful of letters throughout the year to highly selected targets by knowing exactly what to send them, who to send them to and exactly how to deliver her message. She will teach you the secrets of pre-screening and automating your marketing and follow up systems to put your entire Real Estate business on auto-pilot.