Don’t miss the opportunity to connect in Philadelphia, Pennsylvania once again for an educational boot camp. At this event, guests will have the opportunity to learn directly with top business and real estate leaders. Experienced educators will share their knowledge and strategies for guests to have a better understanding of the current real estate market. Join us and gain the insight to implement a game plan for success. This boot camp will include top-level industry information and fantastic networking.
Date: October 7th, 2023 Time: 10am-3pm Location: Philadelphia School of Massage & Bodywork, 263 N Lawrence St, Philadelphia, PA 19106 Mindset: ‘Education, Networking & Creating Opportunities a Workshop Setting’ Registration Cost: $99.00 Person – Includes Breakfast, Snacks & Lunch
Mike Lautensack
Owner at Del Val Property Management LLC
TOPIC: The 10 Reasons Why Real Estate Investors Should BRRRR with Professional Property Management for Maximum Wealth
Stephen Chatto & Roland Jefferson
TOPIC: Wholesaling Real Estate as the foundation to success in all areas of real estate investing.
Overview: A dive into the nuts and bolts of what real estate wholesaling is and is not. This presentation will be real, diving into what is involved, good and bad, in running a successful wholesale business from two full-time real estate investors with hundreds of transactions closed. Not only will you understand and learn the real ins and outs of real estate wholesaling, but you will also learn how the lessons learned operating a wholesaling business translate into effectively running real estate businesses across many niches.
Bob Chessick
Chesspin Corporation
TOPIC:Business Strategy Without The B.S.
Incorporating for Real Estate 101 with Bob Chessick
👉 The Corporate Transparency Act is coming, and it impacts your LLC – Is your LLC ready for 2022?
🔷 Topics will include:
✔ Types of companies
✔ Tax implications
✔ Use of multi-company structures
✔ The new Corporate Transparency Act
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Eric Mauz
Owner, MB Capital Solutions
TOPIC: Expand Your Real Estate Business with Unsecured Business Lines of Credit
3 types of Unsecured Business Lines of Credit
Credit Guidelines to Qualify
R.E. Investor Client Case Study – How clients have used their credit lines for BRRRR Method and Fix & Flip Project
Joseph V. Scorese
National Sales Director, BRRRR Loans
TOPIC: Leveraging Direct Private Lending
Leveraging Direct Private Lending can be a great way to create passive income from real estate and understand Lending Options owning rental properties. But there is a lot to learn before diving in! This Presentation has everything you need to know to provide better knowledge to Real Estate Professionals, Agents & Services in the Investment Space on Direct Private Lending!
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We will cover:
• Rentals Loans
• Fix & Flip Loans
• Portfolio Rental Loans
• Multi-Family Bridge Loans
• New Construction Loans
• Fix to Rent Loans
• Blanket Loan Programs
• 5+ Multi Family & Mixed-Use
• DSCR & Bank Statement Loans
• Non-Recourse & Recourse Options
• Unsecured Business Lines of Credit
• Foreign National Loans
YOUR HOST: This educational boot camp is hosted by Joseph V. Scorese. Mr. Scorese is a mortgage industry professional who is committed to helping his clients. He has more than 20+ years of successful experience in loan origination. Joseph continues to work in the mortgage lending industry and has built a career as a talented and reliable Mortgage Banker.
Real estate lending encompasses both real estate and securities laws.
A) Deeds of trust and mortgage instruments are securities:
Promissory notes secured by deeds of trust or mortgages are security instruments. These contracts represent evidence of indebtedness. Ownership is a security under the Federal Securities Act of 1933.
The definition of security under federal law is as follows:
a) Property given or pledged to guarantee the performance of an obligation. b) An instrument that functions as proof of a security interest in a public or private body.
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Parties in a loan transaction:
Borrowers and private-party lenders are the principals in a transaction. A borrower will sign a promise to pay called a promissory note and the security instrument called a deed of trust. The deed of trust is an instrument recorded at the county recorder’s office, which becomes a matter of public notice of the charging lien against the property.
The note and deed of trust are contracts between the borrower and private-party lenders. After the loan closing, the investors/lenders, or the servicing agents of the investors, will retain the executed and recorded documents as evidence of the investment.
Promissory notes and deeds of trust (or mortgages) are considered personal rather than real property.
B) Deeds of trust and mortgage investments are securities requiring federal or state registrations unless there are applicable exemptions from registration.
Each state in the U.S. has its own securities laws and regulations. State statutes, known as Blue Sky laws, are designed to establish safeguards against fraud for investors. Each state passed separate securities laws to protect the public from fraudulent schemes as far back as 1911 in Kansas. The term “blue sky law” originated in the early 1900s, gaining widespread use when a Kansas Supreme Court justice declared his desire to protect investors from speculative ventures that had “no more basis than so many feet of ‘blue sky.’”
What does securities registration mean?
Registration occurs when a company files the required documents with the Securities and Exchange Commission (SEC). The extensive process involves approving disclosures and other information related to the offering. There will usually be quarterly and annual reporting requirements.
Unregistered securities have fewer protections than registered securities. Companies can only sell unregistered shares to a limited number of qualified or high-income and high-net-worth investors.
Securities overview:
Federal and state securities exemptions from registration are common and available.
Federal Exemptions:
Federal exemptions for privately funded loan transactions and loan pooled investors are referenced in Regulation D, Rule 506 section 4(a)(2), and 506(b), Regulation A, and Rules 147 and 147A. Information about these regulations can be found at:
Definitions and exemptions are on the www.sec.gov website.
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State securities exemptions:
Each state has its own securities laws and exemptions.
I am using California as an example because that is my state of origin. However, those involved with loans and investors in other states should identify their dominion’s relevant state securities statutes.
California Corporate Codes relating to securities are 25000-31516
California Corporate Securities Law of 1968 regulates all offerings and sales of securities in California. All securities offered or sold must be qualified by the Department of Financial Protection and Innovation Commissioner or exempted from qualification and registration by a specific law or corporate rule. Securities references include 10CCR, Chapter 3, Sections 260.115 and 260.204.1, California Corporate Securities rules 25206, 25100 (p), 25102, (e) (f) (n), and 25102.5 which refers to the multi-lender rules.
a) 25100 (p), is referred to as a whole note exemption, one note purchased by one party
(p) This is a promissory note secured by a lien on real property which is neither a series of notes of equal priority secured by interests in the same real property nor a note in which beneficial interests are sold to more than one person or entity.
b) 25102 for state offerings exemption
c) 25102 (e)
Under Section 25102 (e, f,), an exemption from the qualification requirement for issuer transactions is available for any offer of sale of evidence of indebtedness, a partnership, a joint venture, and certain participating interest in railroad rolling stock, or other equipment, if the transaction does not involve a public offering.
California state exemptions for fractional trust deeds are 25102(e), 25102(f), and 25102.5, which cover multiple investors who invest in real estate loan transactions. 25102(e) and 25102.5 allow a maximum of 10 investors. Both exemptions, 25102 (e) and 25102.5 contemplate lending on California properties with California-based investors. Family members are considered as one in the same household.
d) 25102.5is referred to as the fractional note exemption.
California rules are promulgated in the Business & Professions Code 10237-10238, 10232.3, 10232.4, 10232.5, Civil Code 2941.9, and many others.
Under the 25102 (e) and 25102.5 exemptions, ten private investors can co-invest into a single trust deed as tenants-in-common. The difference between 25102 (e) and 25102.5 is that “e” requires disclosure documents in the form of an offering circular, subscription agreements, and a suitability questionnaire. 25102.5 provides a framework for suitability and investor disclosures within 10237-10238 of the Business & Professions code. Interested parties should consult a real estate or securities lawyer specialist
e) 25102(f) private offering exemption.
The Corporations code sets forth an exemption from the qualification requirement for transactions where (1) the sale is to 35 or fewer persons, (2) each purchaser has a preexisting relationship with the securities issuer, (3) each purchaser represents the purchase is for the person’s own account, (4) the offer or sale is not accomplished through advertising, and (5) the issuer files a notice with the Department of Corporations, within 15 dates from of the issuance. Corporate commissioner’s rule 260.102.14 provides instructions for filing the notice and paying a fee. Failure to file the notice on time negates the exemption.
25102 (f) allows up to 35 investors, with conditions. 25102 (f) does not require California investors or California properties for a particular loan request. Discuss with counsel.
There are three instances when a 25102 (f) exemption may be helpful. (1) when a trust deed requires more than ten investors, (2) when an occasional (accredited investor) out of state party invests in a trust deed on a California property, (3) when a California real estate lender makes a loan on an out of state property.
(f) 25113 provides a path to eligibility for qualification by a permit process. An issuer may apply for a permit to operate under this section and provide the accompanying documentation as required by the commissioner. These permits are usually renewable annually. Caution: Applying appropriate securities exemptions and actions to remain in regulatory compliance is most likely accomplished by consultation with a qualified securities attorney. The above is a general but not all-inclusive overview of securities compliance.
2) California Corporate Commissioners rule 25206.
A broker licensed by the Real Estate Commissioner is exempt from the provisionsof Section 25210(broker-dealers) when engaged in transactions in any interest in any general or limited partnership, joint venture, unincorporated association, or similar organization (but not a corporation) owned beneficially by no more than 100 persons and formed for the sole purpose of, and engaged solely in, investment in or gain from an interest in real property, including, but not limited to a sale, exchange, trade, or development. An interest held by a husband and wife shall be owned by one person for this section.
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3) California Code of Regulations, Section 260.204.1
An exemption from the provisions of Section 25210 of the Code is hereby granted, as is necessary and appropriate in the public interest and for the protection of investors, to any person who is a real estate broker as defined in Section 10131of the Business and Professions Code, duly licensed to engage in the business of a real estate broker in this state, and whose business as a broker-dealer, in addition to any transactions within Section 25206 of the Code, is limited to any or all of the following:
(d) Transactions in a series of notes secured by interests
in the same real property, or undivided interests in a note secured by
real property, according to qualification under Section 25110,
Section 25120, or Section 25130
of the Code or according to the exemption contained in Section25102(e),
Section 25102(if) or Section 25102.5, other than an offering which is
made under a registration under the Securities Act of 1933 or a
Regulation
“A” exemption under that Act ( 17 CFR 230.231 et seq.).
California is highly regulated, with other laws passed and pending future legislative bills that diminish property ownership rights and lessen processionary benefits. Real property ownership rights and benefits continue to be eroded.
There are hundreds of code sections about licensing, fiduciary obligations, operation of real estate and mortgage companies, and disclosure requirements for both borrowers and trust deed investors. I omitted the abundantly extensive list of all the code sections because the number is significant. Therein lies the continuous employment of lending consultants, expert witnesses, real estate lawyers, and securities lawyers.
C) Disclosure requirements for trust deed Investors.
A California mortgage broker soliciting an investor to purchase all, or a fractional share of a trust deed must provide a lender/purchaser disclosure statement before taking funds.
A lender/purchaser, disclosure statement 851-C, revised 7/2018
Investor disclosures are in 10232.3 &10232.5 of the California Business and Professions Code.
Business and Professions Codes 10232.3 and 10232.5 outline the disclosure requirements the funding lender must adhere to for a real estate licensee. I am highly familiar with these requirements since I co-sponsored Senate Bill SB 1554 in 1998 and wrote a portion of the language that resulted in adopting the code.
The purpose is to provide the investors with written disclosures to make them aware of the material facts and risks and to enable them to make an informed investment decision.
Address or other means of identification of the real property that is to be the security for the borrower’s obligation.
Estimated fair market value
of the securing property as determined by an independent appraisal, a
copy provided to the lender. However, a lender may waive the
requirement of an independent assessment in writing on a case-by-case
basis, in which case, the real estate broker shall provide the broker’s
reported estimated fair market value of the securing property, which
shall include the objective data upon which the broker’s estimate is
based. A broker has the option of issuing
broker’s opinion of value.”
Age, size, type of construction, and a description of improvements to the property if contained in the appraisal or as represented to the broker by the prospective borrower.
Borrower(s) Identity, occupation, employment, income, and credit data as represented to the broker.
Terms of the loan transaction.
Liens and encumbrances:
pertinent information concerning all liens and encumbrances against the
securing property and, to the extent of actual knowledge of the broker,
relevant information about other loans that the borrower expects
or anticipates will result in a lien recorded against the collateral
property securing the promissory note, created in favor of the
prospective lender. As used in this paragraph, actual knowledge
concerning any anticipated loans means knowledge gained by
the broker through arranging the subject loan or other loans on behalf
of the borrower.
Title insurance: The broker
shall provide the prospective lender with the option to purchase a title
insurance policy or an endorsement of an existing title insurance
policy covering the securing property.
Written loan application (signed) loan application.
Credit report.
Loan servicing provisions: including disposition of the late charge and prepayment penalty fees paid by the borrower.
Industry standards and best practices may expand investor disclosures. Here are recommended guidelines on data accumulation.
Individuals/entities: The borrower may be one or
more individuals or an entity such as a family trust, limited liability
company, or corporation. The procuring loan broker should be able to
articulate who the borrower is and provide
a brief background.
Collateral property:
Describe the property and its uses, along with the address. Describe the
tenancy, income stream, and vacancy if the property is
income-producing. Describe the condition of the property and its
strengths and
weaknesses. Will the property be improved because of this loan?
Purpose of loan:
What is the intended use of the loan proceeds? What other debts are to
be paid as part of the loan? How much net proceeds will the borrower
receive? What will the net proceeds be used for? Will the majority of
the loan proceeds be used for consumer or business purposes?
Some lenders operate under a pooled limited liability format with a California Finance Lenders license. Others operate under a Bureau of Real Estate broker’s license. Some real estate brokers also create pools using one of the various federal and state securities exemptions. Three questions arise: (1) does the entity or the security issuer have a fiduciary obligation to the investors? (2) is the entity required to follow real estate law? (3) can the entity or issuer wave or disregard reasonable and prudent underwriting processes without violating fiduciary or breaking the law?
D) Private-party investors:
Private-party investors may invest by purchasing 100% of a loan, co-invest fractionally, with a small group as tenants-in-common, or in a pooled entity format with other investors. Private-party investors include individuals, family trusts, corporations, IRAs, and pension plans.
Most investors invest with multiple ownership methods (holding titles), such as a family trust for a portion and an IRA custodian for a portion. I have noticed various titles for couples who establish a family trust for themselves and their descendants and invest in each. Multiple family members living in the same home are considered one investor for ten investors or less.
The entire trust deed investment percentage represents the investor’s beneficial interest portion of ownership. For example, if the trust deed investment is for $1,000,000 and the investor purchased $200,000, they would own a 20% undivided interest as tenants-in-common. A $100,000 investor would hold a 10% undivided interest as tenants-in-common with other investors.
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Private-party Investors who desire to invest in trust deeds with their available capital understand that they are securing their investment by accepting a signed promissory note from a borrower, a signed and notarized recorded deed of trust on the security property. Investors’ names are affixed on a recorded trust deed as beneficiaries. Investors will also assume there is a title insurance policy with their names connected as beneficiaries.
Trust deed investments usually provide for receiving monthly interest payments from the borrower and are distributed to the investors. The annualized yields are comparatively reasonable. Investor distributions are generally a tiny fraction less due to being charged a servicing fee.
Interested parties should seek loan broker professionals who understand required regulatory compliance, best practices process & underwriting, and correct documentation. Lastly, interested parties should seek someone with an experienced track record as their agent and source of trust deed investments.
Thank You,
Dan Harkey.
Dan Harkey
Dan Harkey is a contributing author to Weekly Real Estate News and is a Business & Financial Consultant. He can be contacted at 949-533-8315 or [email protected].
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Online auction scheduled for September 11 to September 13 with 19.24 acres and numerous structures with opening bid of $755,006
Bid4Assets, a leading online marketplace for distressed real estate auctions, has been selected by the Johnston County, Oklahoma sheriff’s office to conduct a special forfeiture sale for a marijuana farm seized two years ago as part of an investigation into black market drug trafficking.
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“We’re looking to find buyers who will take ownership of this property and use it responsibly, which was certainly not happening under the previous owners,” said Johnston County Sheriff Gary Dodd. “Let it be known throughout the county that if you use your farm to grow illegally, we will seize it and we will sell it.”
The sale will take place from September 11 to September 13 starting at $755,006. Potential bidders must register a free Bid4Assets account and fund a $25,000 refundable bid deposit in order to participate. Deposits are due by September 6.
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Bid4Assets collaborated with sheriffs and foreclosure attorneys to pass Senate Bill 976, which was signed into law by Governor Kevin Stitt on May 25, 2022. The bill gave Oklahoma sheriffs the option, but not the mandate, to conduct foreclosure auctions online. Several other sheriffs’ offices are preparing to move their foreclosure sales online following the bill’s passage.
“With online public sales now legal throughout the state of Oklahoma, it is great to see Sheriff Dodd and his team taking advantage and enlisting our services for this auction,” said Bid4Assets President Jesse Loomis. “Virtual sales are more efficient, will scale with rising foreclosures and come at no cost to counties. We have several other pending contracts in Oklahoma and expect virtual sales to quickly become the new normal.”
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Senior Real Estate Specialist® designation class-something for everybody
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For agents getting the designation
The new SRES® designation class gives you insight in working with the aging population that is not covered anywhere else in real estate classes. Valuable knowledge to help your clients and their families navigate the lack of information or sometimes overabundance of it in the senior market and at the same time allowing you to tap into the largest real estate market there is…Seniors.
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For SRES® agents
If it has been a while since you earned your SRES® or if you need an update or refresher on what is happening and new resources, take the class again for the discounted price of $99. Just covering the effects of COVID with the senior market is reason to take it again.
For offices, managers, team leaders, etc.
A 20% discount will apply to 20 or more enrollees. Take advantage of this great offer.
WHEN: September 5 & 6, 2023 Tues. & Wed. 9:00 to 4:00
WHERE: Online
PRICE: California Association of REALTORS® members $235, nonmembers $470, SRES® agents $99, groups of 20 or more 20% discount
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If you are a vendor with a product or service for real estate investors (and related real estate professionals), we want you! Our “4th Annual Los Angeles Real Estate Grand Expo” is scheduled for Saturday, October 21, 2023, 9:00 am to 6:00 pm. Besides workshops (with 14 national speakers) and food trucks, we’ll have an exhibition hall featuring products and services for investors. We already have 60 vendors but there’s always room for more! Last year we had over 800 attendees. This year we are planning for over 1,000 attendees! Do you think your future clients just might be there? Get a vendor table and let’s find out. If you would like to have a vendor table at our Grand Expo, please let us know as soon as possible because the price increases the longer you wait to register.
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Vendor Exhibition Hall. Yes, you need to be here! Attendees are real estate investors and real estate professionals. The best and the brightest, consisting of all levels of experience, all in one location, all in one glorious day, and all looking to meet vendors just like you. They need your services. They need your products. They are your future clients. This is why we say our Grand Expo is where you’re going to “meet your future clients.”
Cost. Glad you asked. The cost depends on when you register. The sooner, the better:
Friday Night Lights. One very special feature of our Grand Expo is the reception, vendor set-up and complimentary dinner on the Friday night before Saturday’s Grand Expo. This special event will be closed to only our speakers and vendors. Great opportunity for you to “meet and greet” with everyone in our industry and network to your heart’s content.
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Registration. So, come on! Become a vendor and watch your business grow! Let’s get started. Please fill out the attached Vendor Reservation Formand you’re on your way. If you have any questions, please feel free to call Lloyd (310-409-8310), Sam (310-909-9188), or Linda (310-994-1962).
We will see YOU at the 4th Annual Los Angeles GRAND Real Estate Expo.
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.
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Life, with all its twists and turns, grants us moments of joy and success, yet it also challenges us with uncertainties. As we journey through the tapestry of time, it’s vital to be equipped with the tools that safeguard our hard-earned assets and ensure our wishes are honored. Welcome to the realm of estate planning – a treasure trove of wisdom that empowers you to craft a secure future for yourself and your loved ones.
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1. The Best Estate Planning Tip: Seize the Present Moment
In the symphony of life, procrastination is your foe. The greatest estate planning advice is to initiate the process now, while clarity and competence are your companions. Forge your plan for asset management and care in the face of adversity. Be the architect of your destiny, steering clear of court interference.
2. Beyond the Will: Embrace the Living Trust
A will, though essential, can lead to probate – a journey through courts that consumes time and money. Step into the embrace of a Living Trust, a sanctuary that shields your estate from probate’s grasp. For those with real estate and substantial assets, this is your golden ticket.
3. Fund Your Trust: Empower Your Legacy
Empower your Living Trust by aligning all your assets with its name. A simple signature card at the bank, overseen by your Powers of Attorney, is your key to unifying your financial fortress.
4. Safeguarding the Wisdom: Storing Important Papers
Preserve your precious documents within the embrace of fireproof protection. Ensure your Powers of Attorney hold a key to your safe box, ensuring that your plans remain secure.
5. A Guardian of Your Health: Health Care Proxy
Life’s journey can present incapacitation. Who will speak for you then? A health care proxy designates a trusted representative to make critical medical decisions on your behalf. Protect your healthcare wishes and share them with your physician through a healthcare Power of Attorney.
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6. Alternates for Assurance: Naming Agents Wisely
Fortify your estate plan by naming alternate agents to represent your interests. Be the architect of your fate, ensuring your choices are honored even if your first option is unavailable.
7. An Evolving Masterpiece: Update Your Estate Plan
As seasons change, so does life. Keep your plan aligned with your reality, adapting to personal shifts, economic tides, and tax laws. Stay current and let your legacy shine.
8. Armor Against Creditors: Trusts for Protection
Shield your assets from the clutches of creditors. Trusts, designed with protective provisions, offer an impenetrable sanctuary for your wealth, safeguarding your legacy for generations to come.
9. Homestead Haven: Protecting Your Home
The fortress of your home can be fortified further. Secure your residence with the powerful shield of the homestead, offering protection against creditors up to a significant amount.
10. Gifts of Abundance: Reducing Taxes
Bestow gifts to your loved ones with a generous heart, for gifts between spouses are a tax-free expression of love. Harness the art of gifting to reduce the size of your estate, potentially easing the burden of estate taxes.
Dodge probate, but remember, it’s not the same as evading estate taxes. Consult an estate planning expert to unravel the intricate web of taxation, ensuring your legacy remains untarnished.
12. Destiny in Designation: Beneficiary Forms Matter
Wills and Trusts are the symphonies, but beneficiary designation forms are the conductors. Ensure your orchestra performs harmoniously by keeping these forms accurate and up-to-date, guiding your assets to their rightful heirs.
Embrace the secrets of estate planning, unlocking the doors to financial security and serenity. Paint your legacy with colors of abundance, knowing that your journey through life will be woven into an enduring masterpiece. Let your story inspire others to sculpt their futures, fortified by the wisdom of estate planning.
Schedule a Free Financial Fitness Strategy Session with Kris Miller, LDA
30+ years of experience assisting others in growing & protecting their wealth. Helped more than 6,000 families avoid financial disaster by strategically planning for their futures. Not one person has lost a single dime on her watch. Her clients learn how to change their families’ financial realities and create incomes they will never outlive
Healthy Money Happy Life Make an Appointment with Kris
CA Insurance License OC25427 I am not an attorney. I can only provide self-help services at your specific direction. Should you need legal advice, you will need to consult an attorney. We do Estate Planning, Wills, Living Trusts, Power of Attorney, Health Care Directives and Deeds. Legal Document Assistant in Riverside County, California LDA #000041 Riverside County, expiring 10/15/2021
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Buying rental property is a great way to invest for the future. Just watch out for these common tricks that sellers use to inflate the appraised value.
Be careful when buying rental property. We stayed at a motel for a week one winter. The bill showed twice what it should have, but since I already paid the correct amount in cash, I thought nothing of it. When we noticed that the lobby and swimming pool were unheated, we thought it was frugality. Only a year later, when I read a news story about a new owner struggling to make the motel work, did I realize what was going on.
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The owner had been planning to sell. To prepare, she was using the two most basic ways to inflate the appraised value: decrease expenses and increase reported income. By stopping repairs and quietly adding $100 in income every day, she may have shown $45,000 more net income for the year. At a .08 capitalization rate, that means the appraisal would come in $562,000 higher than it should have. Oops! The poor guy who overpaid!
Do you want to avoid a mistake like that when buying a rental property? You need to watch for tricks like these. You also have to understand the basics of appraising income property.
It starts with the capitalization rate, or “cap rate.” If investors in an area expect a return of 8% on assets, the cap rate is .08. Net income before debt service is divided by this to arrive at the value of a property. I explain this further in another article, but the primary point here is to remember that every dollar of extra income shown will increase the appraised value by $12.50 with a cap rate of .08, or by $10, if the cap rate is .10.
Sellers Dirty Tricks
If sellers of rental properties increase the net by honest means, then the property should sell for more. Unfortunately, there are many dishonest ways, both legal and fraudulent, that are sometimes used. Unlike sellers of houses, who may cover foundation cracks with plaster, the tricks used by sellers of income properties aren’t about appearance. They are about income and expenses.
Income can be inflated by showing you the “pro forma,” or projected income, instead of the actual rents collected. Ask for the actual figures, and check to see that none of the apartments listed as occupied are actually vacant. Also, be sure that none of the income is from one time events, like the sale of something.
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Income from vending machines is a gray area. Smart investors subtract this from the net income before applying the cap rate, then add back the value of the machines themselves. If laundry machines make $6,000, for example, that would add $75,000 to the appraised value (.08 cap rate), if included. Since they are easily replaceable, adding the $10,000 replacement cost instead makes more sense.
Hiding expenses is the most common of seller’s tricks. Paying for repairs off the books, or just avoiding necessary repairs for a year, can dramatically increase the net income. Demand an accounting of all expenditures. If a number in an expense category is suspicious, replace it with your own best guess.
Analyze each of the following, verifying the figures as much as possible, and substituting your own guesses if they are too suspect: vacancy rates, advertising, cleaning, maintenance, repairs, management fees, supplies, taxes, insurance, utilities, commissions, legal fees, and any other expenses. This is how you make buying rental property safe.
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.
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West Virginia is the least expensive state to own a home, with a typical house price of $146,578 as of March 2023.
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Mississippi, Arkansas, Louisiana, and Oklahoma round out the top five.
The study analyzed the typical cost of homes in America, as well as percentage and price increases from 2021 to 2023.
New data has revealed the cheapest states to own a home in America.
The research, conducted by real estate experts Agent Advice, analyzed the typical price of homes throughout the country from March 2021-March 2023. The data also considered price and percentage increases to supply a comprehensive account of real estate in America.
West Virginia takes the crown as the least expensive state to own a home. The research found that typical house prices were $146,578 as of March 2023, 57% less than the national average ($338,649). The typical price increased by 10% and $13,666 from March 2021, the second-lowest monetary increase in the United States, with a 1% and $1,396 rise between March 2022-March 2023.
Mississippi receives a silver medal as the second cheapest state to own a home. In the Magnolia State, a typical house price was $162,292 as of March 2023, 52% below the national average. The Southeastern state also has the third lowest monetary increase in house prices, with a $17,966 and 12% rise between March 2021-March 2023. However, typical house prices depreciated by 2% and $2,523 from March 2022-March 2023, showing a slight decrease in the last two years.
Arkansas ranks in third place. In the Natural State, typical house prices were $178,744 as of March 2023, 47% below the national average. The typical cost rose by 11% and $18,000 between March 2021-March 2023, standing for the fourth lowest monetary increase. The research also reveals typical prices decreased by 4% from March 2022-March 2023, saving house hunters an extra $6,646.
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Louisiana is the fourth cheapest state to own a home in America, with typical house prices being $182,959 as of March 2023, 46% less than the national average. The Pelican State stands for the highest reduction, rather than an increase in prices throughout America, with house prices falling by 2% and $3,363 between March 2021-March 2023, with an 8% and $15,648 reduction between March 2022-2023.
Oklahoma comes in fifth place. The research shows that typical home prices were $188,453 as of March 2023, 44% below the national average. This is 21% more than the typical house price reported as of March 2021, with a 5% and $8,428 monetary rise within the last two years.
Kentucky ranks in sixth place. The data has benchmarked typical house prices at $190,037 as of March 2023, 44% below the national average. Overall, property values increased by 3% and $5,413 from March 2022, and 15% and $24,627 from March 2021, the seventh-lowest monetary rise in the country.
Iowa is the seventh cheapest state to own a home, with typical house prices reported as $200,038 in March 2023, 41% below the national average. The Hawkeye State has experienced a 17% and $29,356 increase in property values between March 2021-March 2023, with 5% and $10,005 accounting for March 2022-March 2023.
Ohio, with a typical home value of $205,800 as of March 2023, is the eighth cheapest state to own a home. Alabama follows in ninth place with a typical price of $206,044, while Kansas rounds out the top ten at $210,742.
Chris Heller, Co-founder of Agent Advice, has commented on the findings: “The U.S. housing market is estimated to be worth $43.4 trillion in 2023. To take advantage of this, consumers and agents alike must understand the ever-changing nature of the real estate market.”
“Overall, there has been an increase in cost in the last three years throughout the nation. However, this research shows that there has also been a depreciation in multiple states over the last two years, showing a rise in more affordable housing.
“In Louisiana, for example, typical house prices have reduced by 8% and $15,648 within the last two years. So, it will be interesting to see if this trend in the cost of housing will eventually decrease throughout the country.”
The top ten cheapest states to own a home in America
Agent Advice is a team of real estate experts providing hand-selected recommendations to help real estate businesses grow.
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https://www.realestateinvestormagazines.com/wp-content/uploads/2023/08/house-on-US-map.png4001000dulcehttp://www.realestateinvestormagazines.com/wp-content/uploads/2013/04/logo.pngdulce2023-08-11 03:28:522023-08-11 03:28:56New Data Reveals the Top Ten Cheapest States to Own a Home in America
Our guest will be Adiel Gorel with ICG Real Estate Investments.
ABOUT MR. ADIEL GOREL – CEO of International Capital Group – Keynote Speaker
Adiel Gorel is the CEO of ICG, a prominent real estate investment firm located in the San Francisco Bay Area. Since 1983 he has successfully been assisting thousands of investors with purchasing U.S. properties.
Through ICG he has personally invested in hundreds of properties for his own portfolio and was involved in the purchase of over 10,000 properties for ICG’s investors in Phoenix, Las Vegas, Orlando, Tampa, Jacksonville, Dallas, Houston, Austin, San Antonio, Atlanta, Nashville, Huntsville, Boise, Oklahoma City, Tulsa, Salt Lake City, to name just a few.
Mr. Gorel holds a master’s degree from Stanford University. His professional experience includes Management and Director Positions in firms including Hewlett- Packard, Excel Telecommunications, and biotechnology firms.
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https://www.realestateinvestormagazines.com/wp-content/uploads/2023/08/Adiel.jpg3661000dulcehttp://www.realestateinvestormagazines.com/wp-content/uploads/2013/04/logo.pngdulce2023-08-10 07:18:482023-08-10 07:18:53Attention: It’s time for another educational and exciting Realty411 Virtual Investing class!
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