Real Estate Investment Training Franchise, Invest Success, Announces Franchise Launch

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The company has officially kicked off its franchise offering, vetting franchisees across the nation for potential partnership.

Denver, COLORADO – Invest Success, a real estate investment training franchise known for its best-in-class training and education courses, has just announced the official launch of its franchise opportunity.

The Colorado-based company is pushing to expand nationally, already seeing momentum thanks to its unique program and model. The franchise includes a proven system of processes, development, and marketing strategies all created to draw in students and train them in the best strategies for creating and growing their real estate portfolios.

“We are changing lives through our program already and are excited to now have the opportunity to change lives through our franchise,” stated Jim Edenfield, co-owner of Invest Success.

“The demand for real estate investment education is extremely strong, leaving ample opportunity for our franchisees to grow their customer base quickly.“

Invest Success concentrates on presenting real estate from all angles, enhancing each students’ understanding of different real estate deals, ultimately producing real life results.

“Our franchisees have the opportunity to benefit from our support and training, our established systems, and our branding,” stated Edenfield.

“They will be part of a training model for real estate investment instructors across the country to provide education for people in their area, following a system that generates revenue year-round without relying on real estate market conditions.“

Invest Success is currently accepting applications for new franchise partners. To learn more about the franchise opportunity, visit www.investsuccessfranchise.com or email [email protected]. 

ABOUT INVEST SUCCESS

Invest Success provides best-in-class training for real estate investment. Students are prepared to take crucial steps towards becoming a successful Real Estate investor, building their portfolio of properties, and even owning their dream home. To learn more about Invest Success, visit www.invest-success.com. To get started with owning your own real estate investment training franchise, visit www.investsuccessfranchise.com.

Relocating to a New State? Here’s What You Need to Know

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By Shirley Martin

Whether it be due to professional reasons or the fact that you need a fresh start, moving to a new state is an experience to look forward to. Realty411 explores the steps you need to take for making a smooth transition to your new state.

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Decide Where You Want to Live

The glitz and glamor offered by big cities often act as a strong pull for newcomers, but it is not the best option for everyone. Even if you are used to city life, the lifestyle and cost of living will vary greatly from state to state. For instance, moving from Pennsylvania to California can prove to be a major change.

Conducting online research should be your first step to learning about the best regions of the state, housing options, and proximity to amenities. To help you choose the region that best suits your expectations, consider working with local real estate agents that can help you learn about the area and housing market and assist in relocation activities.

Determine What to do With Your Old Home

You may need to sell your former home in order to afford the move. But even if you aren’t under financial pressure to sell, there are still many factors to consider to determine whether you should sell or rent your property. You should investigate market conditions before making a decision.

If you do decide to rent it, there are many things you’ll need to do to be a successful landlord. Ensure that you follow all legal requirements for your state and city. Be conservative when estimating your expenses, and prioritize high-quality tenants. With care and caution, you’ll be able to turn your former home into a productive profit center.

Prepare for New Costs of Living

Moving to a high-cost state can prove to be a challenge, especially for the first few months post-move. For instance, if you’re planning to relocate to California, here are some approximate costs to keep in mind:

  • Utilities – $375 (monthly)
  • Groceries – $302 (monthly)
  • Healthcare – $7,638 (yearly)

Additionally, as reported by Sofi, the median sale price in California was $700,000 as of 2021. While this number will fluctuate depending on the region, sound financial planning will be important to ensure your finances remain in control post-move. For newcomers, renting can be a viable option. On average, one can expect to spend between $1,2500-$2,350 each month, depending on the size of the home.

Keep in mind that local conditions can have marked effects on your cost of living. It’s wise to investigate the local market conditions before deciding on your desired community. This will help you avoid overpaying and keep your costs more manageable.

Protect Yourself With a Home Warranty

Another financial consideration is choosing whether to protect yourself against any possible appliance or equipment failures in the new house after move-in day. While a home inspection will likely identify major issues like foundation or roof damage, some items like appliances and systems may be past manufacturer’s warranty periods. In this case, a home warranty is ever more important. The last thing you want is having to foot the repair or replacement bill on the HVAC or the plumbing, or even major appliances left by the previous owner. Researching which home warranty company comes first; online reviews will help you find the best home warranty.

Finding a Doctor After Moving

It can be a time-consuming process to become a new patient with a local doctor after moving. If you have an urgent need to speak with a doctor, having a virtual doctor visit may be worth considering. When you opt for a telehealth platform, you can book a convenient online appointment with a licensed physician and meet from the comfort and privacy of home. Doctors work with most insurers, and should you need medicine, a prescription can be sent to your local pharmacy. This can be an excellent solution to your medical needs after moving.

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Explore New Professional Opportunities

Similar to other factors, the job market differs from state to state as well. If you’re planning to look for a new position post-move, research prominent industries in the state, which presents an abundance of job opportunities. These can be spread across industries such as real estate, fitness, food services, healthcare, and more.

If you currently run a business, you’ll need to take a call on whether to migrate it to your new state. Explore a new business guide to make sure you tick all the boxes. While this is no small task, a new location can provide better opportunities. Additionally, moving to a populous state will provide access to a sizable market and a large local talent pool to choose from.

Here is a business start-up checklist for you to follow:

  • Create a new business plan that includes your mission and vision statements, insights from market research, customer personas, short/long-term goals, and details about your product offering.
  • Depending on your industry, Starttech Ventures notes that becoming a member of local incubators or accelerators will help you connect with industry leaders, secure funding, and find mentors.
  • As a new business, the best structure to consider will be a Limited Liability Company (LLC). If you plan to start an LLC, you’ll be protected from business-related debts and be eligible to use expenses as tax write-offs. If you’re migrating an existing business, consider transferring the LLC to the new state.

Determine if You Need a Vehicle

Moving to a city with great connectivity overcomes the need of having a private vehicle. Using public transport will not only reduce commute times but help you save thousands of dollars a year on fuel, insurance, parking, and vehicle maintenance. However, if you’re moving to a smaller community beyond city limits, a vehicle becomes a necessity that makes life much easier.

Deciding to keep the vehicle will require you to drive it personally to your new home, which will need to be coordinated along with movers transporting all other belongings. The opposite scenario will require taking steps to sell the vehicle and ensure all requirements are complete before moving day.

In the days leading up to the move, remember to cherish the moments in your current home. While moving will be stressful no doubt, the future will be filled with exciting experiences and a whole new place to explore. It all starts with deciding where you want to live, researching the cost of living in your new locale, getting a home warranty, looking into local business guidelines and regulations, and pursuing vocational opportunities.

To learn more about real estate investing and marketing opportunities in the industry, visit REI Wealth Magazine today!

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.

IS IT CRAZY TO SELLER FINANCE YOUR RENTALS—OR CRAZY NOT TO?

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By Eddie Speed

IS IT CRAZY TO SELLER FINANCE YOUR RENTALS—OR CRAZY NOT TO?

We’re now in a note cycle. It’s as obvious to a note guy like me as when an oil guy hits a gusher.

I’ve been a note guy since 1980. As anyone in any phase of real estate knows, the market is constantly changing and evolving. We either change with it or get left behind. I can say from experience that what worked in one decade wouldn’t work in the next. And so on for the next, and the next, and the next.

Which leads us to 2023. We’re seeing a market phenomenon that’s producing a phenomenal opportunity.

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I’ve lived through cycles where owning rental properties made a lot of sense financially. But in today’s market, not as much. You owe it to yourself to test your investment strategy. Run the numbers and compare the profit potential of owning rentals versus selling your rentals with seller financing. Because of today’s high home prices and mortgage rates, I predict you’ll discover it makes more sense to be the bank (with NO expenses like taxes, repairs or insurance) instead of being the landlord (paying ALL those expenses). I bet you’ll also realize how much more income you’ll bring in every month by seller financing instead of renting.

HERE’S WHY NOW IS THE TIME FOR SELLER FINANCING

If you’ve ever dropped a coin into a slot machine, your eyes would pop out if all the dials lined up. Well, when it comes to dropping some money on an investment, all the dials are lining up on seller financing—especially in regions of the country where rents have dropped significantly. Here are some of the factors we’re seeing in today’s market:

• RENTAL HOUSE AFFORDABILITY The cost of buying a potential rental house is the highest since at least 1996. If you get a mortgage around 8%, and pay an inflated price due to the pandemic, you’ll pay 60% more than buying the same house three years ago. This makes it very challenging to scale up your rental business. On the other hand, if you sell your rental houses now with seller financing, you’ll get substantially more than three years ago. And you’ll be getting double or triple the interest now than you would have gotten three years ago.

• INCREASES IN RENT ARE WAY BELOW INCREASES IN PRICE Averaging all US markets together, the cost of buying a house is up 60%, but rents have risen only 22% during the same 3-year period. In many markets (mainly in the western half of the country), rents have declined since last year.

• SOFTER DEMAND FOR RENTAL PROPERTIES A glut of newly built apartments is depressing rent growth. And according to the St. Louis Federal Reserve, an additional one million units currently under construction will hit the market soon. Fannie Mae predicts vacancy rates in multifamily buildings will reach 6.25% in 2024, which exceeds the 15-year average of 5.8%. Apartment stocks are underperforming. To avoid vacancies, apartments lower the rent which depresses rental income for landlords.

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• CREDIT AVAILABILITY Underwriting standards have changed drastically because of the covid pandemic. Traditional lenders arenow hurting from over two million delinquent home loans. Money from banks and mortgage companies has gotten tighter and tighter, putting eager buyers—even ones with steady jobs and solid credit—in the penalty box. The mortgage credit availability index stood at 96.3 in October, 2023; which is about half what it was three years ago. Well-qualified homebuyers are getting turned down by traditional lenders; driving them right into the arms of seller financing.

• HOME APPRECIATION HAS LEVELED OFF Even though home prices shot up during the pandemic, prices aren’t maintaining the same trajectory. They’ve hit a plateau. Goldman Sachs expects home prices and mortgage rates to increase only 1.7% in the next year. That’s not just flat, that’s “stand on a brick and see fifty miles flat.” Now’s the time to sell your rental portfolio at top dollar and cash out before home prices stagnate.

• TAX ADVANTAGES When you sell a rental property that has greatly appreciated, you’ll owe a bundle in capital gains taxes. But if you take the profit over time through seller financing, the Internal Revenue Service allows you to spread out the gains using the “Installment Sales Method.” This technique has allowed countless sellers to pay no capital gains taxes at all. Of course, there’s always the possibility the IRS could close this loophole in the future, so better take advantage of it now.

YOU CAN MAKE MORE THAN DOUBLE THE MONTHLY INCOME FROM SELLER FINANCING THAN LANDLORDING

Today’s home prices and interest rates are both elevated. So when you sell your rental with seller financing, the monthly mortgage payment you receive will be much larger than your monthly rent check.

In the rental world, there’s the “50% Rule” (also what they call “The Magic Number”). It means 50% of rental income goes toward expenses. If the rent checks you get don’t surpass the 50% Rule—after paying taxes, repairs, and insurance—you’ll lose money. But as a note owner in today’s market—who DOESN’T pay taxes, repairs, and insurance—even a mediocre note would easily beat the 50% Rule of profitability. And with today’s high interest rates being paid TO you instead of BY you, the checks you get every month could be lots more than you get from rent.

GET YOUR APPRECIATION NOW INSTEAD OF YEARS FROM NOW

A frequent objection people raise when they compare note investing to landlording is that when you own a rental house, the property appreciates over time. It’s a fair question that deserves a fair answer.

As long as the rental property is kept in good repair, and the neighborhood doesn’t decline, its value should increase over the years until you decide to sell it. But let’s say there are two investors; one buys a rental property, the other buys a note, and both pay the same amount. Over ten years, the note investor makes double the monthly income compared to the landlord who pays taxes, insurance, and repairs for ten years. If the landlord sells the property after ten years, he gets the appreciation—but the rent checks stop (unless he sells with seller financing). As for the note investor, after ten years he still has twenty more years of payments coming!

Even if the landlord’s rental house appreciates roughly 10% a year, fire up your calculator and you’ll see how much more the note investor makes over the life of their investments.

THEN THERE’S THE HEADACHE FACTOR

Lots of landlords think they’re getting an investment, but it turns into a job. You have to deal with showings, repairs, and midnight calls from tenants to fix a leaky hot water heater. But when you own the note, repairs are the homeowner’s headaches. Every investor who has transitioned from landlording to seller financing will agree: You can own a thousand notes for the same amount of work as owning a hundred rentals.

If the note investor’s homeowner stops paying, your investment is completely collateralized by the property. But if the landlord’s tenant stops paying, good luck collecting the back rent.

ARE YOU READY TO TURN THE CORNER ON YOUR CAREER?

It’s been said that “Timing is to investments what location is to real estate.” The time is now and the door is wide open for you to consider selling your rental properties with seller financed notes. Don’t keep doing things the same way as always, and don’t look past this tremendous window of opportunity to boost your net worth like never before.

Learning the tools of seller financing and note creation will open up a whole new world of monthly cashflow and wealth-building—and we make it surprisingly easy at NoteSchool. The first step is to take my free 2-hour Master Class where you’ll be introduced to the lucrative world of notes. Just visit: NoteSchool.com/EddieMasterClass

Eddie Speed: Author, Teacher, Innovator, Visionary

Eddie grew up around horses, but in 1980 he learned there’s more wealth to be built with a pencil than a rope. That’s when his father-in-law, a pioneer of seller financed notes, taught him the ropes of the note business. Eddie has been perfecting his craft ever since, introducing creative innovations that changed the way note investing is done.

As the nation’s most experienced note buyer, he has closed over 50,000 note deals. He launched NoteSchool in 2000, where anyone can learn the art of creative financing for performing and non-performing discounted mortgage notes. He is the owner and president of Colonial Funding Group LLC, which acquires and brokers discounted real estate secured notes, and he’s a principal in a family of Private Equity funds that acquire bulk note portfolios.

Thousands of NoteSchool students have testified to the wealth building, life-changing power of his tried-and-true, data-driven approach to note investing.

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.

How to Overcome Declining Purchasing Power with Real Estate

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By Rick Tobin

Homeowners are 40 times wealthier than tenants. Real estate is an exceptional hedge against inflation because home values tend to rise at least as high as the published inflation rates.

If you’re fortunate to own real estate over years or decades, it’s very likely to be the main reason for the bulk of your family’s overall net worth. Conversely, tenants will be losing money over time as their rents continue to rise right alongside skyrocketing inflation rates.

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Americans in 2023 need to earn more than $11,400 to be able to enjoy the same standard of living as they did in 2021 thanks to the rapidly declining value of our dollar, according to CBS News.

If your earnings rose by 34% from January 2020 to October 2023, the purchasing power of your labor kept pace with higher costs. All of us who aren’t earning 34% more since January 2020 have lost ground. It now takes more hours of work to buy groceries and everything else. To offset declining purchase power, real estate ownership may be your best option.

The purchasing power of $100,000 in income in January 2020 is only $66,000 in purchasing power today (34% reduction). To keep pace with the rapidly falling purchasing power of the dollar, $100,000 in income in January 2020 would need to rise to $134,000 in income today or your investments would need to appreciate at the same rate to offset your dollar losses.

Rising Prices for Goods, Services, and Assets

Between 2008 and the 1st quarter of 2023, let’s review some of the “official” government published data for consumer goods, services, and assets from sources such as the U.S. Bureau of Labor Statistics:

  • Hospital services: +99.8%
  • College tuition: +64.4%
  • Child care: +62.1%
  • Medical care: +57.2%
  • Food and drink: +52.8%
  • Housing: 48.3%

Again, these are the published numbers that are likely underreported and much lower than the true inflated price changes. To me, it seems like all prices are significantly higher here in the 4th quarter of 2023 as compared to the 1st quarter this year. If so, the actual price gains may be significantly higher as we head into 2024.

All-Time Record High California Home Prices

In spite of mortgage rates more than tripling over the past year or so, housing prices statewide in California have never been higher for owners, new buyers, and tenants.

Shocking Los Angeles Home Price Swings

The median home sales price in Los Angeles County hit a record high of $914,640 in September 2023.By comparison, the median Los Angeles County home price was $318,075 (12/08).

Near the peak of the previous housing bubble and near the official start of the Credit Crisis or Great Financial Recession in late 2008, the median home sale price was almost $600,000 lower in Los Angeles County than median-priced homes in the same region. How is this not shocking?

Today, Los Angeles is ranked as the #2 most expensive U.S. city and the #6 most expensive worldwide city for residents to live in, according to KTLA News.

Many California homeowners have never been wealthier due to rapidly increasing home equity gains while many tenants have never been poorer due to their all-time record high rental payments, sadly.

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Expensive Coastal Regions and Inland Moves

Because some of the most expensive real estate prices in the world are located in California coastal counties like San Diego, Orange, Los Angeles, Ventura, Santa Barbara, and San Francisco (both a city and county name), more residents are moving inland to places like Riverside or San Bernardino counties in Southern California or out of state to Arizona, Nevada, or Texas.

Buyer demand still exceeds the available home supply while pushing home prices higher, especially in the Riverside County region, which is much more affordable than the near $840,000 statewide home price average for California.

Riverside County Home Spotlight Region

The median sale price of a single-family home in Riverside County was a new all-time record high of $620,960 in October 2023, up from $600,000 in September, with a rise from $599,990 in October 2022, according to the California Association of Realtors.

  • Lake Elsinore: $575,000 ($175,000 below the Temecula average)
  • Canyon Lake: $662,000
  • Menifee: $547,500
  • Murrieta: $657,500
  • Temecula: $750,000
  • Corona: $759,000

Adding Value to Real Estate

Owners or interested buyers who are thinking about purchasing a new one-to-four unit property to boost their wealth and/or monthly income with rental units have several options these days which may include:

  • First-time owner-occupied homes
  • A move-up from a smaller to a larger home
  • A short-term or long-term rental
  • Adding tiny homes or ADU (Accessory Dwelling Unit) to a residential property site to increase monthly cash flow.
  • Remodeling an existing home with a new kitchen, bathroom, or bedroom.
  • Building a brand new home, duplex, triplex, or fourplex from the ground up.

One-Time Close Construction Loans

I’ve worked on numerous individual home construction loans and large residential development tracts over the past few decades. Yet, I’ve never seen a better, easier, and more affordable home construction loan option for owners who are interested in building a brand new “dream home” for their family.

Generally, a person may need two or three separate loans to build a new home that may include a land purchase loan (40% to 50% LTV ranges are more the norm), construction loan, and a final 30-year takeout or permanent loan to pay off the construction loan.

With a One-Time Close Construction Loan, the borrower applicant qualifies for one loan to buy the land, build the home, and keep the same loan for up to 30 years all within one loan closing option. This way, there’s one credit report pull, one loan underwriting and approval process, one down payment unless it’s a VA loan (up to 100% financing) or a very low down payment requirement for FHA-insured and conventional loans (up to 95% to 96.5% LTV).

Let’s review below some of the loan product highlights offered by one of my main lending partners:

Conventional Loans

* Available on 15-and 30-year fixed conventional, high balance and 7- and 10-year ARM options
* Eligible on primary, second or vacation home, and investment property purchases and rate/term refinances
* Loan amounts up to the conforming loan limits
* 700+ FICO, up to 95% LTV
* 11-month maximum build period with 1-month modification period
* Interest-only monthly payments during the build period

VA Loans

* Available on 30-year fixed loans
* Loans up to $4M
* Eligible on primary home purchases and cash-out refinances
* 580+ FICO, up to 100% LTV
* 11-month maximum build period with 1-month modification period (build period is deducted from the loan term)
* No monthly payments during the build period

Rule of 72 and Power of Leverage

Real estate has proven to be an exceptional hedge against inflation over the past 100 years. In some economic boom years, home values may double in value every 2, 3, 5, 7, or 10 years. With minimal down payments, the true annual cash-on-cash returns are much higher than most people realize.

The Rule of 72 is an investment formula used to estimate how long it may take for an asset to double in value using a projected annual rate of return. If homes in your region have increased 7% per year over the past several years and home appreciation continues at the same pace in the future, then it may take 10+ years for your new home to double in value using the Rule of 72 (72/7 or 7% = 10+ years).

Most first-time home buyers use high mortgage leverage within a 0% to 6% down payment range (6% down is average).
Let’s use 20% down payment for an estimated cash-on-cash return for an owner-occupied or investment property buyer. At a 7% annual appreciation rate average, the cash-on-cash return is actually 5 times 7% (20% down – 1/5th; 80% bank – 4/5th) for a total 35% annual cash-on-cash return.

Time and inflation can be two great allies to eliminate the mortgage debt as your home rises in value thanks to the power of leverage and inflation.

Is the housing market positive, negative, or neutral? It depends on the home region, the regional home listing inventory supply, and the price range is perhaps the safest answer to give.

Why doesn’t it feel like a slow home sales market to first-time buyers? Let’s take a closer look at the national home sales numbers for October 2023 as provided by the National Association of Realtors:

  • 66% of homes for sale were sold in less than a month.
  • 62% of surveyed real estate professionals said that their first-time home buyers had to put in four or more offers before closing on a home.
  • The median home sales price for an existing home was $391,800, up 3.4% compared to a year ago.

Invest in Your Future Today

The average homeowner at retirement age has 83% of their net worth tied up in their primary home. 60%+ of Americans surveyed say that they live paycheck to paycheck, so saving is challenging. Middle-income parents may spend an average of $310,605 by the time a child born in 2015 turns 17 years old in 2032, per Brookings Institute. What about college?

The average Social Security benefit paid out in 2022 was $1,657/mo. ($19,884/yr.). Median savings rate (excluding retirement funds) by age: $3,240 (under 35); $4,710 (35-44); $5,620 (45-54); and $6,400 (55-64), per a Federal Reserve survey. The median retirement savings for all families is $87,000, according to the 2022 Survey of Consumer Finances.

There’s good debt (mortgages) and bad debt (credit cards at 28% to 33% rates, etc.). Mortgages help create long-term wealth, especially after they are paid off in full. To shorten the time to pay off a mortgage, you might pay biweekly and add some principal to reduce 10 to 15+ years in payments while the home asset potentially doubles or triples in value.

Our dollar’s purchasing power is on track to continue falling in value. If so, the prices paid for consumer goods, services, and assets like real estate may keep rising as well. As a result, equity gains for real estate ownership may increase while giving you more options to pay off debt and build a brighter future.

Rick Tobin

Rick Tobin has worked in the real estate, financial, investment, and writing fields for the past 30+ years. He’s held eight (8) different real estate, securities, and mortgage brokerage licenses to date and is a graduate of the University of Southern California. He provides creative residential and commercial mortgage solutions for clients across the nation. He’s also written college textbooks and real estate licensing courses in most states for the two largest real estate publishers in the nation; the oldest real estate school in California; and the first online real estate school in California. Please visit his website at Realloans.com for financing options and his new investment group at So-Cal Real Estate Investors for more details. 

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411.com or our Eventbrite landing page, CLICK HERE.

Realty411’s National Investor Summit — The Latest Investing News & Insight

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Date and time
Saturday, February 24, 2024 · 9am – 6pm PST

Location
THE ATRIUM HOTEL
18700 MacArthur Blvd. Irvine, CA 92612 United States

Refund Policy
Contact the organizer to request a refund.
Eventbrite’s fee is nonrefundable.

About this event
9 hours
Mobile eTicket

Discover the Latest Insight, News and Investment Strategies at Realty411’s National Investor Summit in Southern California.

Investors, we have exciting news, insight and networking at Realty411’s new in-person investor summit in Southern California. Our special one-day conference will host incredible educators from around the country, who are ready to share their valuable insight with our guests.

Since 2007, Realty411 has united thousands of investors from across the nation. Guests will receive our latest publication featuring wonderful resources, insightful news and educational articles.

While the mainstream media is focused on high interest rates, we know this is the best time to locate and purchase properties in California and around the nation. The money is made on the buy — by purchasing the right properties. Do you know what they are? We’ll teach you insight that only real estate investors with years of experience can share.

Be sure to download the latest Realty411 to learn more about real estate investing, CLICK HERE.

Now is the moment to grasp this opportunity — the chance to network with sophisticated investors from California and around the country. Upgrade as a VIP Guest ($49) and join us for a delicious buffet lunch as well.

RSVP TO OUR EVENT, CLICK HERE:

https://www.eventbrite.com/e/realty411s-national-investor-summit-the-latest-investing-news-insight-tickets-767074228667?aff=oddtdtcreator

Be sure to pencil this date now and join us in-person to gain specialized insight and knowledge. The information shared on this day could catapult your portfolio to new levels. Discover our new property portal, our VIP perks, plus connect with new and past industry resources.

This one-day conference has something for everyone regardless of their experience level in real estate. Join this memorable day and receive knowledge for a lifetime.

Learn the Latest Niches in Real Estate + Connect with Influential Investors from across the nation right here in Southern California.

Are you ready to Grow Your Real Estate Business, Portfolio and Network?

We want this VIP EVENT TO EXPAND YOUR MIND and help you succeed.

This is Your Chance to meet TOP Leaders in REI, Local & National Experts:

  • Learn from Leaders & Industry Pros
  • Meet Local PLUS Out-of-Area Investors
  • NON-Stop Tips for Real Estate Success
  • Bring Lots of Business Cards

This event is produced and hosted by Realty411.com. Our company is based in Central California. Since 2007, we have dedicated our time, resources and energy to help expand real estate investing knowledge and education by producing complimentary magazines, virtual conferences, webinars, podcasts, and live events.

We also produce REI Wealth magazine, which is the longest-running magazine for investors specifically developed for online readership. Our digital, interactive issue is designed to be read and viewed online, CLICK HERE.

INVEST YOUR TIME HERE FOR ONE SPECIAL DAY OF NETWORKING & MOTIVATION – TAKE YOUR REAL ESTATE KNOWLEDGE TO A WHOLE NEW LEVEL.

Learn from NEW speakers and new topics — What can expect?

  • Receive the latest REI knowledge from active investors
  • We feature the latest technology to expand your income
  • Meet other investors with common goals and mindsets
  • Develop relationships with leaders in the industry
  • Share your opportunities with potential clients
  • Learn how to save money with our Realty411VIP.com members’ network — must have a special code when ordering
  • Realty411’s publisher has owned national rentals for many decades
  • We will share life-changing information unavailable anywhere else
  • We host in-person events to meet our readers and to spread knowledge

Our mission is simple: To provide realty knowledge and resources so that everyone can learn about the benefits of investing.

OTHER SPECIAL BONUS PERKS INCLUDE:

  • Early-Bird Guests Receive Our Investment Magazines (while they last!)
  • Meet Local Leaders & Industry Giants – From Coast to Coast
  • Influential Real Estate People & Business Owners Are Attending
  • Learn How to Leverage and Meet Private Capital Lenders
  • Find Potential Partners, New Friends, Build Your Circle of Influence
  • Your Net Worth = Your Network — Don’t miss this event
  • Mingle with Leaders & Industry Professionals Here

Please bring LOTS OF BUSINESS CARDS, it’s time to Network! Learn more about our magazines and our company sponsors and resources, visit Realy411.com

RSVP TO OUR EVENT, CLICK HERE:

https://www.eventbrite.com/e/realty411s-national-investor-summit-the-latest-investing-news-insight-tickets-767074228667?aff=oddtdtcreator

WOULD YOU LIKE TO SPEAK IN FRONT OF OUR LOYAL INVESTORS? PLEASE REACH US FOR DETAILS AT: 805.693.1497 OR 310.994.1962 (TEXT).

Discounted parking available. Upgrade to a VIP ticket to enjoy special bonuses.

Realty411’s Central Coast Investor Summit – Connect & Learn with Experts

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Join Us to Meet with Fantastic Companies and Network with Experienced Real Estate Investors — Realty411 has Reached Thousands Since 2007

Date and time
Saturday, February 17, 2024 · 9am – 3pm PST

Location
The Cliffs Hotel & Spa
2757 Shell Beach Rd Pismo Beach, CA 93449 United States

Refund Policy
Contact the organizer to request a refund.
Eventbrite’s fee is nonrefundable.

About this event
6 hours
Mobile eTicket

Discover the Latest Insight, News and Investment Strategies at Realty411’s National Investor Summit in Southern California.

Investors, join us for exciting news, insight and networking at Realty411’s new in-person investor summit in one of the most beautiful areas of California, the Central Coast. Our special one-day conference will host incredible educators from around the country, who are ready to share their valuable insight with our guests.

Since 2007, Realty411 has united thousands of investors from across the nation. Guests will receive our latest publication featuring wonderful resources, insightful news and educational articles.

While the mainstream media is focused on high interest rates, we know this is the best time to locate and purchase properties in California and around the nation. The money is made on the buy — by purchasing the right properties. Do you know what they are? We’ll teach you insight that only real estate investors with years of experience can share.

Be sure to download the latest Realty411 to learn more about real estate investing, CLICK HERE.

Now is the moment to grasp this opportunity — the chance to network with sophisticated investors from California and around the country. Ticket holders can upgrade as a VIP Guest ($27) and join us for a networking breakfast at 8:30 AM. The event begins promptly at 9:30 AM

Be sure to pencil this date now and join us in-person to gain specialized insight and knowledge. The information shared on this day could catapult your portfolio to new levels. Discover our new property portal, our VIP perks, plus connect with new and past industry resources.

This one-day conference has something for everyone regardless of their experience level in real estate. Join this memorable day and receive knowledge for a lifetime.

Learn the Latest Niches in Real Estate + Connect with Influential Investors from across the nation right here in Southern California.

Are you ready to Grow Your Real Estate Business, Portfolio and Network?

We want this VIP EVENT TO EXPAND YOUR MIND and help you succeed.

This is Your Chance to meet TOP Leaders in REI, Local & National Experts:

  • Learn from Leaders & Industry Pros
  • Meet Local PLUS Out-of-Area Investors
  • NON-Stop Tips for Real Estate Success
  • Bring Lots of Business Cards

This event is produced and hosted by Realty411.com. Our company is based in Central California. Since 2007, we have dedicated our time, resources and energy to help expand real estate investing knowledge and education by producing complimentary magazines, virtual conferences, webinars, podcasts, and live events.

We also produce REI Wealth magazine, which is the longest-running magazine for investors specifically developed for online readership. Our digital, interactive issue is designed to be read and viewed online, CLICK HERE.

INVEST YOUR TIME HERE FOR ONE SPECIAL DAY OF NETWORKING & MOTIVATION – TAKE YOUR REAL ESTATE KNOWLEDGE TO A WHOLE NEW LEVEL.

Learn from NEW speakers and new topics — What can expect?

  • Receive the latest REI knowledge from active investors
  • We feature the latest technology to expand your income
  • Meet other investors with common goals and mindsets
  • Develop relationships with leaders in the industry
  • Share your opportunities with potential clients
  • Learn how to save money with our Realty411VIP.com members’ network — must have a special code when ordering
  • Realty411’s publisher has owned national rentals for many decades
  • We will share life-changing information unavailable anywhere else
  • We host in-person events to meet our readers and to spread knowledge

Our mission is simple: To provide realty knowledge and resources so that everyone can learn about the benefits of investing.

OTHER SPECIAL BONUS PERKS INCLUDE:

  • Early-Bird Guests Receive Our Investment Magazines (while they last!)
  • Meet Local Leaders & Industry Giants – From Coast to Coast
  • Influential Real Estate People & Business Owners Are Attending
  • Learn How to Leverage and Meet Private Capital Lenders
  • Find Potential Partners, New Friends, Build Your Circle of Influence
  • Your Net Worth = Your Network — Don’t miss this event
  • Mingle with Leaders & Industry Professionals Here

Please bring LOTS OF BUSINESS CARDS, it’s time to Network! Learn more about our magazines and our company sponsors and resources:

Discounted parking available. Upgrade to a VIP ticket to enjoy special bonuses.

The Rise of Non-Performing Loans and Opportunity for Investors

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By Edward Brown

It is no surprise that mortgage rates have dramatically increased over the past year. In July 2022, 30-year fixed rates for both conforming and high-balance loans had reached 5.375%, according to sources such as Guaranteed Rate. This is up from the low 2% range in early 2021. Obviously, such an increase in rates can have a dramatic effect on house prices as would-be buyers try to buy a house they can afford.

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However, the rise in interest rates goes far beyond just what buyers can afford for a new purchase. First, adjustable-rate mortgages will climb dramatically, which will impact homeowners trying to make sure they keep up with their mortgages by not going into default. Next, the whole reason the Fed increased rates was to stave off even more inflation than the country had been experiencing since the change in presidency. Here is where we might see a rise in non-performing loans [NPLs], as homeowners fight to keep up with inflation as well as rising interest rates that impact mortgages and other borrowings [credit cards, auto loans, etc.].

During The Great Recession, the U.S. saw a huge wave of defaults with mortgages; primarily, this was due to a credit bubble, as lenders were too eager to make loans. Very little oversight was seen regarding these loans, and borrowers who should not have been granted loans still qualified. Fast forward 15 years, real estate prices have increased substantially to overcome the devastation of the previous drop.

Banks, thanks to Dodd-Frank, are now only allowed to make loans to borrowers who can demonstrate an ability to repay. All of this makes for a strong real estate market, and we should not experience the wave of foreclosures we previously saw; however, that does not mean we will not see them.

As noted above, when there is a spike in interest rates [and inflation] as we have recently experienced [and potentially more increases to come], homeowners can get behind in their mortgages, and without the government moratoriums that were in place during Covid, banks will have to start foreclosing, or sell off mortgages to keep within Federal guidelines of Reserve Requirements. The banks may try and work modifications or other remedies to assist homeowners, but there are times when there is not much the bank can do except file notices of default and start the foreclosure proceedings.

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One major difference in today’s real estate world as compared to The Great Recession is that, today, many homeowners have ample equity in their houses. This gives the homeowner the possibility of preserving some equity by selling their house rather than get foreclosed on. However, many homeowners around the country, mostly in the lower end market, will still lose their house in foreclosure. One reason is that the homeowner has not researched the value of their house; they just assume that if they cannot pay, they lose the house. Another is that some homeowners are headstrong about staying in their house and trying to fight a legal battle only to be on the wrong end and, by that time, it is too late to try and save their equity. These situations are unfortunate, as, even when the lender points these things out, many borrowers stick their head in the sand and let the chips fall where they may.

Investors have been clamoring for yield. So much so that even NPLs were commanding unheard of prices [as much as 85% of face value]. As the economy was doing well [pre-Covid], real estate prices were steadily increasing and there was confidence in the marketplace. However, in “normal” times, one might offer 50% +/- of the face of the NPL note, as there is a fair amount of work that goes into managing a NPL regarding foreclosure, forbearance, modifications, bankruptcies, and possible lawsuits by the borrowers. As interest rates rise and the supply of NPLs is sure to increase, one should expect the prices of the NPLs to decrease – – allowing investors to potentially pick up handsome profits.

In the early 1990s, the S&L crisis provided such opportunities to investors swooping up “bad loans”, as the S&Ls were directed to unload these mortgages into the market very quickly. As the dust settled, as it usually does after wide pendulum swings, these investors profited, as they picked up loans [or property if the foreclosure had already been completed, and the bank held the asset as an REO] at discounts that were previously only imaginable. Discounts of more than 60% were not uncommon. At such a discounted price, the investor appeared to not take any undue risk. There was so much room for error, almost any loan to be purchased was worth it.

We may not be in that same situation now due to restrictive banking regulations that have been imposed on banks for years, prohibiting them from making unreasonably risky loans and the fact that real estate has held its own since The Great Recession, but there should be plenty of opportunity for investors to pick up discounted loans with fairly large margins built in; however, the average investor is prohibited from participating in buying these loans due to the relatively large amount of capital needed to enter this space. For example, a large bank or hedge fund willing to unload NPLs may require a buyer to invest a minimum of $1,000,000 or more. If there is a bidding situation [auction], a refundable deposit is usually required, so the bank/hedge fund knows they are dealing with serious, wealthy buyers.

For those investors who have the wherewithal to participate in purchasing NPLs, they should have a sophisticated team to assist them, as there will be a need for analysts to do a deep dive in the values of the property to which the loans are secured, contractors to help facilitate potential rehabbing of the property if/when the property reverts to the investor, legal analysts dealing with the various foreclosure laws in the states where the properties are located, and good real estate sales people to not only give BPOs — but also help facilitate the eventual sale of the property or assist with the possible rental of the same [or find a good management company].

One strategy to consider is to approach the NPL borrower and try to re-write or modify the loan [of course, before doing so, consult with competent legal counsel to make sure that there are no legal issues that would compromise the collateral]. There are a few benefits to this strategy; first, turning a NPL into a performing loan brings immediate cash flow. Because of the discount that is obtained in the purchase, the new note holder has the flexibility of making the note more attractive for the borrower. For instance, if a note [that has a face value of $100,000] has 20 years to go and has a note rate of 6% was purchased for 60 cents on the dollar from the bank, the new note holder could offer to lower the balance to $90,000 and reduce the interest rate to 5% and have a great asset that can either be held for cash flow or sold in the secondary market.

One additional factor that may help in modifying the NPL’s notes is the fact that, according to Bank of America’s internal data, rents continue to rise. July 2022 year over year showed an increase in rents of 7.4%. Most people want to keep their home. If the lender can give them advantages to saving it, most homeowners will jump at the chance, especially when their alternative is to be thrown into a rising rent market. A question the lender has to contemplate is whether the strategy of keeping a homeowner in their home makes economic sense [ignoring the moral issue of eviction]. In some cases, evicting a homeowner and immediately selling the house may make sense.

In some cases, the lender may choose to invest money in rehabbing the property in hopes of additional gain, but there is uncertainty with this strategy; the time it takes to rehab, the expense, and the value of the house after rehab and time to sell [with expenses associated with the sale]. When a homeowner is going to get foreclosed on, there are avenues that can be taken to delay the inevitable, including filing bankruptcy. Due to court budgets, this delay may be prolonged more than the lender originally anticipated, especially in judicial-only states.

The time and expense for entering into foreclosure for the lender may not be worth the anticipated profit; however, the strategy of keeping the homeowner in place and working out a new deal can produce immediate cash flow, as the borrower will start making payments right away. In addition, the costs to modify a note are substantially less than what foreclosure costs would normally be.

The good news from the lender’s point of view is that, due to the purchase of these loans at steep discounts, rates of returns in excess of 15% are not uncommon. After the note is modified, the lender has the option to flip the note to a note buyer as a performing note [which will command a higher price than an NPL], or the lender may choose to keep the note for the cash flow. In the case of choosing to sell the note, the lender may be wise in waiting to experience six months of performance by the borrower, as most note holders desire to see notes that have at least six months’ seasoning; otherwise, they may discount the note for uncertainty reasons [lack of history] more than the lender desires.

MEET EDWARD BROWN

Edward Brown currently hosts two radio shows, The Best of Investing and Sports Econ 101. He is also in the Investor Relations department for Pacific Private Money, a private real estate lending company. Edward has published many articles in various financial magazines as well as been an expert on CNN, in addition to appearing as an expert witness and consultant in cases involving investments and analysis of financial statements and tax returns.

Edward Brown, Host
The Best of Investing on KDOW AM1220 on Saturdays at noon.

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.FacebookTwitterShare

Behold the Cockroach – It has survived and thrived

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By Randy Hughes, Mr. Land Trust

Starting in the late 1970s and up through the 1990s pitchmen were all over television extolling the ease at which you could “become rich in your spare time” if you just followed their real estate investment “program.” After 52 years in the real estate investment business, I know of no one who became rich through real estate quickly (I am sure some investors got rich quickly through luck, but I have never met one).

I do know a lot of people who became rich using real estate as their vehicle. They all earned it by working hard and putting in years of devotion.

This article for Realty 411 is for all of you who have not yet become a millionaire in your “spare time.”

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What does all this have to do with cockroaches?

When it comes to being able to survive and expand its operations, nothing has ever surpassed the lowly cockroach. Despite chemical warfare, I often find them in my houses after tenants vacate. Some tenants seem to cohabitate with cockroaches intentionally (and quite well)!

In New York’s Museum of Natural History, they used to point tourists’ attention to a pickled roach between the toes of their biggest dinosaur to demonstrate that roaches have survived in the same form since the period before dinosaurs stalked the Earth.

This means that cockroaches lived on even after the mass extinction of the dinosaurs. For perspective, man has been on Earth during only 1% of the time that cockroaches have existed on the planet!

How have cockroaches survived?

How have cockroaches survived so successfully for millions of years? 1). It never challenges anything bigger than itself 2). It stays out of sight 3). It can survive for lengthy periods under adverse conditions or in a hostile environment 4). It is fast and elusive 5). It lives in the cracks of society never calling attention to itself 6). It reproduces quickly and with ease 7). It can make a meal out of about anything organic regardless of how unappetizing!

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What can we learn from the cockroach lifestyle?

We small investors must be adaptable, maintain a low profile, and be prepared to move quickly when either an opportunity or danger presents itself. We must be able to recognize opportunities, whether foreclosures, rehabs, discounted paper, single-family house opportunities, or value-added property prospects. We must also avoid hostile environments (and hostile tenants) which are high on risk and low on rewards.

You can skip “make a meal out of about anything organic”. I don’t recommend that.

About those Pitchmen

I knew a real estate guru once that bragged that he bought a property every month. He later confessed that he felt so obligated to follow through with that public statement that he would buy bad deals just to “keep up his image” as a monthly property buyer.

Be patient, be diligent, analyze, and then act. Some investors never succeed because they catch the “paralysis of analysis” fever. They buy books (sometimes they even read those books they buy), attend meetings, talk with other investors, analyze data, buy mentor programs, and never buy any real estate.

I encourage you to learn more by going to my FREE online training at www.landtrustwebinar.com/411 and text the word “reasons” to 206-203-2005 for my free booklet, Reasons to Use a Land Trust. You can also reach me the old-fashioned way by calling me at 217-355-1281. (I actually answer my own phone, unlike most other businesses in America today!)

Apply these lessons from a cockroach lifestyle and you WILL succeed!

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411.com or our Eventbrite landing page, CLICK HERE.

Why the Middle Class Tend to Stay Middle Class

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By Steve Davis

It is a fact that it is hard to break out of the middle class and become wealthy. There are many obstacles that must be overcome. The good news is that most of these obstacles can be easily overcome through education. Not formal education, high school, or college, but from self-education.

I was born and raised middle class. The strategies that the middle-class implement were engrained in my head.

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The strategy was to do well in high school, go to college, get a job, scrimp, and save in an IRA or 401k, work for 45 years, retire, and live off of your savings. This was the map I was given. I bet that map sounds familiar to you, doesn’t it? All middle-class people are given this map. The problem is the map doesn’t work. Ninety-five percent of Americans fail to retire by age 65 using this map. The average savings for a 65-year-old is less than $200,000. No one can retire with that amount of money.

What opened my eyes was after working for the same company 70 hours a week, for 5 years straight, I won a national sales contest. They sent me to Hawaii for a week. When I got back, they cut my pay by $20,000 a year. This woke me up that the map was wrong. I had to do something different. I began self-educating. I bought every book and tape program off late-night TV on real estate investing. Within 2 months I was making more money than at my job. I quit the 70 hours a week immediately. It saved my marriage by the way.

Here are six things that I learned that keep the middle-class, middle-class.

Number 1:

Thinking you can cheap your way through life and save enough to retire.

People cut coupons, conserve water and electricity. They drive across town to save a dollar on tomatoes. They think they can be cheap and save their way to retirement. This is just not true. You may be able to save a few hundred dollars a month being cheap, but think about it, can you live off a couple of hundred dollars a month in retirement?

Let’s do the math. Let’s say you work from age 20 to 65 (45 years). You make an average of $100,000 a year. Less at the beginning, more toward the end of your career. That is $4.5 million over the 45 years.

Let’s say your average expenses were $5000 a month. That is everything from food to mortgage.

How much could you save?

Income:                                   $4.5 million

Taxes: @23%                           $1 million

Expenses: $5000 a month     $2.7 million

Max Savings:                           $800,000

Using the 4% rule that would give you about $32,000 a year in retirement plus your social security which would be around $2000 a month. That would give you less than $5000 a month in retirement. You would have no money for romance, travel, or anything fun. This would be a horrible retirement by any definition.

It is nearly impossible to save your way to retirement. The numbers just don’t work. What you need to understand is that you don’t have an expense problem, you have an income problem. You just don’t make enough money.

Put the coupons down and read a book on how to make more money. That is why I started investing in real estate. I realized the system was flawed. I focused not on saving money but making more money. That is what is effective.

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Number 2:

Thinking a job is there to build wealth.

The middle class think that a job is a way to build wealth. It is not. They think they are going to climb the corporate ladder to success. This success story is so rare, it is not even worth mentioning. Waiting for people to die, get old, retire, or get fired so you can move up is futile and ineffective.

Why do people think they can do this? Because when someone does do it, they publicize it as the norm.

I used to look up to Jack Welch of GE. I wanted to be like him. The press promoted him and bragged about his $100 plus million paychecks. They did not let you know that he had 150,000 employees that were just barely surviving.

This is much like the casinos that when someone wins $1 million, they promote it all over the place not mentioning the other 10,000 people that were losing money at the exact same time in the exact same casino.

Plus, imagine playing Monopoly and just circling the board and collecting your $200 paycheck every time you passed go. Would you ever win the game? No. To win the game, you can’t just depend on a paycheck. You must buy income-producing assets such as rail roads, utilities, and real estate. It is the same in real life.

Number 3:

Thinking high school and college teach you about building wealth.

The sad truth is neither high school nor college teach you anything about building wealth. They teach you how to get a job and nothing more. That is what they were designed to do.

You are responsible for your financial education. Jim Rohn put it this way. “Formal education will make you a living, self-education will make you a fortune.”

Seventy percent of Americans never read a non-fiction book after high school or college. This is a huge mistake. They think they know everything, and they end up broke at 65.

You must read, listen, and attend seminars and workshops if you are going to learn the rules of money and wealth.

Number 4:

They waste massive amounts of money trying to impress others.

The “keeping up with the Joneses’” costs the middle-class billions a year. Constantly upgrading their clothes, watches, cars, and homes to impress people who don’t even care.

Remember this point: “Dance like no one is watching. They aren’t.” This is very true. They just don’t care. They have their own lives and problems to worry about. They don’t care what kind of car you drive or where you live. Stop trying to impress others. It is a waste of time and money.

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Number 5:

Buying toys first and assets second.

The middle-class has it backwards. The say this to themselves. “I will buy all the things I want first, and then I will start saving and investing.” It doesn’t work. By the time they buy the clothes, watches, cars, and houses, they are living paycheck to paycheck. There is no money left over to save and invest.

The people who end up wealthy buy assets first, and with the profit from these assets, they buy the toys.

I have never made a payment on my boat, Ferrari, or beach house. My assets pay for them.

Number 6:

They fall victim to lifestyle creep.

Do you remember in your 20s and 30s when you made very little money and lived paycheck to paycheck? Of course. You didn’t make much money, so it makes sense.

However, it is 20 years later, and you are making 3 times as much but you are still living paycheck to paycheck. Where did that other money go? Lifestyle creep.

When you got your first raise, you decided to buy your first home and took on a mortgage way higher than your apartment rent.

You got your second raise and now you needed a nicer car. Maybe a BMW.

You got your third raise and now your kids are not in the right school district, so you must buy a more expensive home in a nicer subdivision.

Are you starting to see what’s happening? Every time you get more money, you are spending it to improve your lifestyle leaving you continually living paycheck to paycheck.

These 6 things combine to keep the middle-class middle-class. It is a sad situation but can be solved fairly easily by stopping the madness.

Be aware, I did every one of these things at one time or another and I turned my life around very quickly by stopping. You can too.

Steve Davis,

Total Wealth Academy CEO and Lead Consultant

Host of the TWA Real Estate Investor Radio Show

www.totalwealthacademy.com

[email protected]

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.

How to Buy a Mobile Home for Real Estate Investing

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By Joe Arias

Are you looking into how to buy a mobile home for real estate investing? First, you need to understand whether or not buying a mobile home will be a worthwhile investment. If you follow the proper steps for mobile home investing, it can certainly be a profitable business venture. Before getting into the steps you need to take to have a profitable mobile home real estate company, let’s first look at the pros and cons of investing in these types of properties. 

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Pros of Investing in Mobile Homes

Mobile homes are advantageous because they are cheaper than investing in other types of real estate. Because they are mass-produced and not built one-by-one like homes, they cost much less than traditional houses. 

Because they are less expensive, you may be able to invest more money in making them a little more modern. You can add things like granite counter, hardwood floors, and updated appliances with the money you save from buying mobile homes. This increases the value and helps get them rented or sold faster. 

As house prices rise across the country, more and more people are looking for affordable options. As a mobile home real estate investor, this puts you in a uniquely profitable situation. Mobile homes are beginning to be seen as a viable option to replace a more expensive traditional house. Even better, mobile home tenants tend to rent for more extended periods of time than those in apartments or traditional homes. This helps you avoid lost rent between tenants. 

Cons of Investing in Mobile Homes

Unfortunately, many people view mobile homes in a negative light. They do not see them as respectable options for homes. This view is slowly changing, but it is something to keep in mind. You simply won’t have the same demand for mobile homes as you would a traditional property. 

Mobile homes can quickly become costly if you invest in the wrong property. Some mobile homes may require you to buy the land you want to keep it on. This is something you need to keep in mind when determining your expenses and return on investment. You should also note that, unlike houses, mobile homes depreciate in value relatively quickly. This is great if you want to buy an old mobile home and fit it up, but not great for resale value if you ever want to get rid of the property. 

Finally, you may run into trouble trying to finance your mobile home. Traditional lenders often won’t fund you the way they would if you were buying a traditional house. If the mobile home you are buying does not already come with land, it’s likely you will not receive financing. This is something you need to consider before jumping into buying a mobile home. 

Now that we’ve got the benefits and drawbacks out of the way, we can look at improvements you can make to mobile homes. These will help raise property value and allow you to charge more for the mobile home. This can help you develop a good revenue stream and allow you to grow your real estate investment portfolio. 

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Improvements to Increase the Value of Your Mobile Home

Attic

The attic of a mobile home is probably the most overlooked area, but it has some great potential. Even if you don’t have the room to build a full-sized building on top of your home, you can easily create a multi-level living area by installing adequate insulation on the interior walls. One way to boost your home’s value is to build an attic loft and add an elevator or stairway connecting it to the ground floor.

Conversion

A second option for upgrading your home is to convert it to a larger house. In this scenario, you would tear out the interior walls and put in new ones. The following are some other types of conversions that can be beneficial: A sunroom (to create more living space), an addition on the side (to add more bedrooms), a deck area (to create outdoor living space), and a basement expansion (so you have a place to keep all of your possessions that aren’t stored in the attic).

Upgrades

A third option is a simple upgrade of the home’s interior. The first thing to do is keep the original ceiling and replace it with a higher-quality material, such as wood. Some other upgrades that can be made to the structure include vinyl and natural flooring, new bathroom and kitchen fixtures, new doors, appliances, and cabinets.

Landscaping

If you are looking to make your mobile home more appealing, you should focus on the building’s exterior. There are plenty of ways that you can upgrade your property to make it more attractive. You can change out the landscaping, which will provide an area of privacy and allow for greater land value. One way to make landscaping more appealing is to add a deck or patio area to have a designated area for outdoor living space.

Exterior lighting

Another significant exterior improvement is the addition of outdoor lighting. Lighting can also boost your home’s value because many buyers prefer homes with street lights, walkways, and security lights. Your home’s lighting should be made up of high-quality, energy-efficient HID bulbs to ensure that it is both safe and functional.

Front Porch

The front porch is a large area that can be made into a place to entertain or relax. Adding a new roofing material to your home’s exterior above the porch can give it a facelift while also bringing in some more value. There are many types of roofing materials, but the most popular is asphalt shingle. Be sure to get a warranty with the roofing installation, so if something goes wrong with it, you can fix it.

Fencing

The final exterior upgrade is fencing. Fences are a great way to increase the value of your home while also giving it some privacy and protection. A fence can be made from many materials, but most are either wood or vinyl.

These are just a few of the ways that you can go about upgrading your mobile home and making it more valuable. Just remember to keep the safety of your customers in mind.

Advantages of Mobile Home Investing

There are several advantages to investing in a mobile home. As stated before, they are cheaper than investing in another type of real estate. They are easy to find and can be located in more appealing areas. They can be bought for less than they cost new. If you don’t have the money to buy your home new, you can get one that is pretty close to new for a lower price. In addition, you can find mobile homes that are in great condition and ready for someone else to move into. That is a rare opportunity to buy a piece of real estate and have someone else pay you to live in it.

What Determines a Good Property Investment

There are many important factors to consider and evaluate when determining whether or not a home is a good investment:

  1. The property must be located in a strong, healthy real estate market.
  2. The property must offer the potential for both upside and downside growth with a low vacancy rate of tenants. 
  3. The property must be professionally managed to keep vacancy rates low and the property in good shape.
  4. The property should be purchased below market value (what it would cost you to build, if ever).
  5. The cash flow should exceed at least 5% per month, preferably more like 15% or 20% per month.

For most people, the ideal investment would be a home that provides long-term value growth (appreciation) but with modest increases in monthly income (cash flow).

Tips for Buying Used Mobile Homes

There are several tips that you can follow if you want to be successful when it comes to buying used mobile homes. First, make sure you take lots of pictures of the mobile home and its surroundings so that you can genuinely get a good idea of what it looks like. Additionally, don’t go into negotiations thinking that the seller will give you a good deal. Instead, make an offer that you think is fair, and you can live with. Lastly, remember to avoid being taken advantage of by people trying to sell you used mobile homes for a lot more than they are worth. When considering a price that seems fair, look into recent sales on comparable mobile homes in the area. Take into account what you plan to make through renting it or reselling it, and make sure the return on investment is high enough. 

Tips for Selling Used Mobile Homes

The following tips will help you maximize the profit in your mobile home. First, make sure that there is nothing that needs to be repaired before you sell it. Make any necessary repairs or changes to ensure that it sells for a profitable and fair price. Additionally, make sure that you clean out the mobile home of any personal items. If it is presented as clean and not in need of any repairs, it will be easy to get someone to pay you a fair price. Lastly, be entirely transparent about the mobile home and anything they need to know about it. Buyers who view you as untrustworthy will not want to buy from you.  

Process of Buying a Mobile Home

Conducting a simple investigation online can help you learn how to buy a mobile home, which is relatively easy. Once you find a mobile home, you can sign a contract immediately to ensure that the mobile home doesn’t get sold to anyone else.  Once the contract is signed, the seller will need to provide information about the property. This information includes details such as who owns the property and if there are any liens against it. Once all of this information has been collected, the title will be transferred, and the buyer will have control over the mobile home.

Summary

When you are looking for a mobile home, it can be a daunting task. However, if you remember to think about your needs first and then look at the available mobile homes, it will make the experience much more enjoyable. Additionally, remember not to fall victim to scams while looking at mobile homes. Do your research to find good areas to invest in mobile homes. Understand the best investments that work with your capital and what you expect to make from your investments. 

To learn more about real estate investing, check out the education services we offer to help you succeed in your real estate investment career.  

Joe Arias and his partners have flipped hundreds of properties in the Southern California Region. He has developed cutting-edge systems to simplify and scale the entire remodel process that can easily be applied to flipping, rentals, wholesaling, and other passive income strategies. More recently, Joe founded a real estate investing education company called RealSuccess Investments, allowing him to share his tools and systems with hundreds of up-and-coming investors. 

RealSuccess is focused on education on flipping, rentals, passive income, and wholesaling.

Joe is also a best-selling author. He has written 4 books: Finding your RealSuccess, First Steps to Flipping, R stands for Rentals and Retirement, and Wholesaling Real Estate.

“I came from Argentina when I was 20, I am 40 years old now. I didn’t know anyone, I am CERO generation, usually people say, I am first or second generation but I was the one that crossed the border, no language, no friends, no family, no money, nothing, nada… If I can do it, anyone can.”

From a young latino immigrant  to a celebrated real estate investor, Joe is a true testament to hard work and discipline. As an investor, he has made it his mission to help others achieve financial freedom while enjoying living a life of passion, fulfillment, and empowerment.

RealSuccess Website

www.ourrealsuccess.com

Personal Instagram: 

https://www.instagram.com/joeariasinvestor/

Real Estate Investment- Instagram: 

Instagram: https://www.instagram.com/realsuccesseducation/

Video For Finding Money from All Day Training (10 Hour Seminar)

https://vimeo.com/manage/videos/528446162

1 Hour Webinar

https://vimeo.com/manage/videos/530996751

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