Ways to Find a Real Estate Mentor

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By Joe Arias

If you want to quickly grow within real estate, finding a good mentor is the best thing you can do for yourself. Whether they be in real estate, politics, or business, almost any successful person had a mentor who helped them get to where they are now. Books, podcasts, and videos will only get you so far when it comes to learning about real estate investing. After that, it’s all about real-world experience and gaining valuable connections.

To learn as much as possible in a relatively short amount of time, you should look into ways to find a real estate mentor. Someone who is trustworthy and knowledgeable will help you quickly grow within the industry and get you closer to your goals. By sharing their mistakes, they can help you avoid making your own. By aligning yourself with someone who has already reached your set goals, you are more likely to achieve your own. There is more to finding a real estate mentor than just picking someone you admire. This article will go over everything you need to know about how to find a real estate mentor.

What is a Real Estate Mentor?

A real estate mentor is someone who will help you quickly grow within your real estate career by offering advice and coaching based on their own experience. Typically, you will choose someone who already has many years of experience and is now knowledgeable enough to share their own experiences with you. They should be willing to help guide you through your career journey based on things they learned in theirs. This mentorship should be a beneficial relationship for both parties. You should also bring something valuable for your mentor, like new skills, networking connections, or potential deals.

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Best Ways to Find a Real Estate Mentor

The perfect real estate mentor should be someone who is successful in the same things that you aspire to do in your own career. Before looking for a mentor, you should complete the following steps:

  1. Identify what you want to accomplish in your real estate career
  2. Establish whether or not your potential mentor has the credentials and experience to help you reach your own goals
  3. Look for someone in the same type of real estate investment you see yourself in (flipping homes, wholesale, property management, etc.)
  4. Make sure the goals of your mentor align with yours
  5. Ensure there is a mutual level of respect

Once you better understand what you want in a real estate mentor, you can begin looking for someone who could be the right fit. This list includes some of the best ways to find a real estate mentor.

  1. Join local real estate groups
  2. Attend networking events
  3. Try out all aspects of real estate to meet the most people
  4. Share your work online and on social media
  5. Create a robust LinkedIn profile and connect with other real estate professionals
  6. Engage with their content and attend their sessions

Types of Real Estate Mentorships

Before you jump right into finding your real estate mentor, you should decide which type of mentorship works best for you. Consider things like your learning style, availability, and what you feel you need to learn from your mentor to succeed. Once you understand yourself and your needs better, you’ll be able to choose the best mentor for you. Below are a few different types of real estate mentorships you may want to consider when looking for your own.

Personalized Coaching

With a personalized coaching style of mentorship, you will get one-on-one coaching from your mentor. This is an excellent option for anyone just starting off in real estate who could benefit from a lot of personalized advice that pertains to their specific needs and goals. This mentor will be someone experienced in the type of real estate investing you plan to get into who can help walk you through any potential projects or deals.

Mastermind Groups

Unlike the personal coaching style of mentorship, being in a mastermind group is like having many mentors around you who you can reach out to. Check your area to see if there are any real estate investing groups that you can join. This is an easy way to connect with peers in real estate and start making connections with people who can help you. If there are no groups in your area, look into some virtual groups instead. You may even end up meeting someone who you want as your mentor in one of these groups.

Apprenticeships

Some of the best knowledge you can gain is through experience. The quickest and easiest way to get lots of experience is through an apprenticeship. With this type of mentorship, you will assist your mentor as they show you the ropes through their own business. This is a valuable way to get hands-on experience, plus you can see how someone who is successful in the same goals you set for yourself conducts their own business. Pay close attention to what your mentor does throughout your apprenticeship so you can follow their example.

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How to Pick the Right Mentor for You

It’s important to note that just because someone has good knowledge of the industry doesn’t mean they’re a good fit for you. Don’t feel obligated to accept someone’s offer to be a mentor just because they are open to it. This is a symbiotic relationship, and both people need to get something out of it. Do your research and make sure whoever you pick as your mentor has similar goals as your own. The best real estate mentor will be able to help you fast-track your goals and grow quickly within your area of real estate. Start by looking for someone who is already accomplishing what you aspire to in your future.

Once you find people who are successful in ways that you hope to be, make sure they would make a good mentor. Just because someone is successful doesn’t mean they are good at being a real estate mentor. If someone doesn’t feel like the right fit, don’t be afraid to talk to others. Find someone who has a good communication style that matches your own. Committing to a mentorship is a big decision, and there is no need to rush it.

Does Real Estate Mentorship Cost Money?

Everyone is different when it comes to requiring payment for mentorship. This is something you should discuss with your potential mentor before committing to anything. That said, having a good mentor can put you ahead of your competition and speed up your success within real estate. Despite costing money, getting a real estate mentor is something you should highly consider for yourself if you want to achieve your goals.

To learn more about how to get started in your real estate investment career, reach out to us to join our three day real estate investment course!

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

Amazon Book#1:

Amazon Book#2

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Nation’s Fastest Growing Solar Company SOAR Energy Partners with Better Earth to Disrupt Real Estate Sustainability Sector

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The company, co-founded by HGTV stars Tarek and Heather Rae El-Moussa, will help facilitate Better Earth’s $400 million in annual sales.

SOAR Energy, the #1 fastest growing solar company co-founded by HGTV stars Tarek and Heather Rae El-Moussa along with Shelby Elias and led by mortgage veteran Brian Decker, today announced its partnership with Better Earth, the leading vertically integrated residential solar energy installation company.

The move marks a pivotal step into the real estate sustainability sectors of California, Arizona, Texas and Florida on the heels of the recently passed Inflation Reduction Act, which allocated nearly $400 billion in federal funding toward clean energy. The companies will collaborate to strengthen their shared mission of educating consumers about solar energy options.

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“We started SOAR with the goal of confronting the climate crisis head-on and emphasizing the importance of clean energy in the real estate sector,” said Tarek and Heather Rae El-Moussa. “More solar energy systems are being installed now than they were even a few years ago, and the capacity for solar energy in the U.S. is growing rapidly. Combining efforts with an innovative, fast-growing company like Better Earth was a no-brainer. Together, we are committed to making solar energy affordable and easy for residents across all states where our business is active.”

The Solar Energy Industries Association set its nationwide goal for solar energy to reach 30 percent of U.S. electricity generation by 2030, highlighting the fast-tracked growth the sector is set to see over the next several years. Further, the U.S. Department of Energy recognizes solar energy as the most abundant energy source on earth. However, the residential real estate sector has grappled with pain points as solar panels remain a hard-to-navigate topic for brokers across the U.S. Together, Better Earth and SOAR Energy are determined to change this. Since joining forces, the companies have worked together to install nearly 1,000 solar energy systems in homes across the states it operates in, and in six months have created over $20 million in energy savings for homeowners over the next decade.

“Better Earth and SOAR Energy have set out to disrupt and redefine the real estate sector’s approach to solar energy,” said Zain Jan, Chief Executive Officer at Better Earth. “There is a misunderstanding about how affordable solar energy options are for homeowners, and we are committed to making a significant impact on both consumer education and the environment we all share. By joining forces through this partnership, we are eager to solve the issues facing the sector and grow in our efforts across the states we serve.”

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SOAR Energy’s solar systems are fully transferrable upon the sale of a home and offer financing options with no line on the property, vastly differentiating the company within the sector. The systems, which typically take no more than 90 days to be fully installed and begin saving homeowners money, hold Pearl Certifications, highlighting their unmatched quality and energy efficiency. Additionally, for every installation made, SOAR Energy and Better Earth donate a portion of the proceeds to GivePower, a nonprofit organization that focuses on providing clean water globally.

As the federal government continues to roll out additional clean energy initiatives, SOAR Energy and Better Earth will remain at the forefront of the sector, educating its consumers on how these can apply to them. For more information on this partnership, visit www.soarenergy.com.

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Big Sky Medical Welcomes New Team Member to Strengthen Real Estate Investing Relationships

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DALLAS, June 09, 2023 — Big Sky Medical, a leading real estate investment firm, is pleased to announce the addition of a highly experienced professional to its team. Introducing Mark Sullivan – Managing Director and Head of Distribution. With an impressive track record in the real estate industry, Mark brings a wealth of expertise in fundraising and cultivating partnerships for various investment vehicles. For over 25 years, he has led best-in-class investor relations teams focused on capital raising, consultant relations, and client service. Having raised and structured more than $10B in assets, Mark possesses a deep understanding of the industry’s dynamics. His proven interpersonal skills and keen business acumen make him an ideal fit for enhancing collaboration and driving growth within Big Sky.

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With a strong commitment to providing exceptional investment opportunities and superior investor relations, Big Sky recognizes the importance of building and maintaining strong commitments with partners, investors, and stakeholders. The addition of Mark reinforces the company’s dedication to cultivating long-term connections and driving mutual success.

“We are delighted to welcome Mark to our team,” said Jason Signor, Big Sky’s CEO and Managing Partner. “His extensive experience and expertise in relationship development and investor relations will play a pivotal role in fostering strong partnerships within the real estate investing industry. By strengthening our connections and consistently delivering exceptional value to our clients, we are confident that Big Sky will continue to be a leader in the market.”

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With the addition of Mark to our current team of talented individuals, Big Sky is further positioned to provide innovative real estate investment solutions while continuing to prioritize its core values of integrity, transparency, and client success.

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Realty411’s Investor’s Summit – Build Your Wealth with Real Estate

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Saturday, August 12, 2023 at 9:00 AM
18700 MacArthur Blvd. – Irvine, CA 92612

Here are other upcoming events from this organizer

Sat, Sep 16 at 8:30 AM

Realty411’s Lone Star Investor Summit – Build Wealth with Real Estate

Arlington, TX

Advisors Mortgage Group On a Hiring Spree

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As the mortgage industry struggles, Advisors Mortgage Group expands

OCEAN TOWNSHIP, N.J., June 13, 2023 — Advisors Mortgage Group, based in Ocean Township, New Jersey, today announces an influx of new loan officers joining the Company. While the mortgage industry has seen many companies closing and banks, such as Wells Fargo, dissolving their mortgage lending divisions, Advisors Mortgage Group is still growing.

“One of the many things setting Advisors Mortgage apart from our competition is the support we offer loan officers. We have a marketing department that curates custom campaigns weekly for prospecting and we have implemented milestone marketing to our borrowers. CRM assistance, custom websites, social media set-up and posting are also tools provided consistently. We train our loan officers to be consultants and trusted advisors and provide them with weekly live streaming shows on the current state of the markets,” says Jonathon Iacono, national recruiting manager.

Dave Wicki, Ocean, New Jersey, branch manager, returned to Advisors after a year’s absence and had this to say: “I came back home to Advisors because of its family-oriented culture. The support they provide to all their loan officers is unrivaled. They listen to my needs and go out of their way to set me up for success.”

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Steve Yap recently joined the company, claiming, “Advisors is the best in the business, and I know I will be successful with all of the support they provide to their loan officers.”

Newly hired loan officer Colleen Reed notes: “I came on board to Advisors after meeting with my branch manager and talking with many title companies and agents about their past experiences with this company. I heard nothing but great things, looked into all the marketing platforms, talked to other loan officers at Advisors and made a great decision to join the company. The transition with the entire staff from onboarding to training has been amazing.”

Jordy Castillo, market manager, from the Wantagh, New York, branch states: “Before I decided to join Advisors Mortgage Group I was being recruited by Citibank and East West Bank. I also had an offer from CrossCountry Mortgage. I decided to join Advisors simply because I knew that it was the right fit. I’d referred Carlos Quezada to a few deals that I couldn’t do, and he was able to get them closed quickly and efficiently so I felt comfortable making the move.”

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Castillo continued: “In the current mortgage market, I truly believe that it is more important than ever before to have the right partner. I declined senior management roles at both Citibank and East West Bank because I knew I would be limiting myself and my loan officers. Big banks come in and out of the mortgage market, with that said I wanted to make sure that I joined a company where mortgage originations are their only priority. In addition to this, at Advisors, we have access to every single product you could ever need. Our transparent process, family atmosphere and loan officer-first mentality firmly sets us apart from the competition. With the support of senior leadership, Carlos and I will build a top-producing sales team here at Advisors Mortgage Group. The future looks bright at Advisors Mortgage Group, and I feel fortunate to be able to be a part of it.”

According to metrics provided by Marketrac®, a premier online portal providing intelligent, on-demand data and analysis on real estate transactions, Advisors is the top purchase lender on the Jersey Shore. The Company has also made the Inc. 5000 Fastest Growing Private Companies list numerous times since 2009, was named Best Mortgage Lender five years in a row by the Asbury Park Press in their Community Choice Best of the Best awards and also made the NJBIZ Best Places to Work list for the past decade.

To learn more about Advisors Mortgage Group, please visit their website at: https://advisorsmortgage.com/ or call them at 855-LOANS-USA.

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7 Best Ways for Real Estate Investors to Work with a Real Estate Agent

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By Hugh Zaretsky

Real estate agents and brokers can play a crucial role in the success of your real estate investment business. Their knowledge, experience, and network can provide valuable insights and opportunities. As a seasoned real estate investor with over 17 years of experience, I have collaborated with numerous top real estate professionals to find good tenants and buyers for my properties using both traditional and creative financing strategies. As a former real estate continuing education instructor in California, Florida, New York, and Texas, I understand that some agents and brokers love working with investors, and some do NOT understand the investor mindset. That is why it is important to find the RIGHT real estate professionals to work with.

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My combination of practical experience and educational background allows me to appreciate the importance of a strong partnership between real estate investors and agents. The key is establishing an effective partnership requires clear communication and mutual understanding. In this article, I will share seven essential strategies for real estate investors to effectively collaborate with agents, backed by my personal and professional experience and insights.

  1. Define Your Investment Goals: Before engaging with a real estate agent, it’s important to define your investment goals. Are you looking for rental properties, fix-and-flip opportunities, or long-term investments? Communicate your objectives clearly to the agent, so they can align their efforts with your specific needs.
  2. Choose an Agent Specializing in Investment Properties: Real estate agents have diverse areas of expertise. When working with an agent as a real estate investor, seek someone who specializes in investment properties. These agents are more likely to have extensive knowledge of the local market, rental rates, property management, and can help identify potential investment opportunities.
  3. Build a Strong Relationship: Developing a strong relationship with your real estate agent is vital. Take the time to meet in person, have regular phone conversations, or use video conferencing to discuss your investment plans and objectives. By fostering a solid relationship, you will establish trust and ensure that your agent understands your preferences and criteria.
  4. Leverage their Local Market Knowledge: One of the primary advantages of working with a real estate agent is their in-depth knowledge of the local market. Capitalize on this expertise by relying on your agent’s insights into neighborhood trends, property values, and investment potential. Their market knowledge can help you make informed decisions and identify lucrative opportunities.
  5. Tap into their Network: Experienced real estate agents possess a wide network of professionals, including lenders, contractors, property inspectors, and property managers. Leverage their connections to gain access to reliable resources. These referrals can save you time and effort, providing you with a team of experts who can help streamline your investment process.
  6. Collaborate on Property Analysis: Working closely with your real estate agent, analyze potential investment properties together. Share your investment criteria, such as desired cash flow, return on investment, and risk tolerance. Utilize their expertise to evaluate the property’s value, marketability, and potential challenges. A collaborative approach ensures you make well-informed investment decisions.
  7. Stay Informed and Communicate Regularly: Maintain open lines of communication with your real estate agent. Regularly update them on any changes to your investment strategy, budget, or preferred property types. Similarly, stay informed about the local market conditions, property listings, and relevant regulations. This constant flow of information between you and your agent will help ensure you both stay on top of market opportunities.

BONUS – Expand Your Network: After 17 years of being an investor, I recently became an agent and joined one of the fastest growing real estate brokerages in the country. I have built a nationwide team of real estate agents and brokers that understand how to work with real estate investors, because, most of us are both agents or brokers and investors.

Are you a real estate professional and want to learn how to build a stronger working relationship with investors or become an investor yourself? If so, then reach out and I can show you how. (www.hughzaretsky.com or [email protected])

Are you a real estate agent and want to find good agents and brokers that understand real estate investors? If so, then reach out and I will connect you with one of my local team members. (www.hughzaretsky.com or [email protected])

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Based on my experience working with the RIGHT real estate agent or broker can be immensely beneficial for your real estate investing business. By clearly defining your investment goals, choosing the right agent, fostering a strong relationship, leveraging their local market knowledge, tapping into their network, collaborating on property analysis, and maintaining open communication, you can establish a successful partnership. Remember, a well-aligned collaboration between real estate investors and agents can unlock exciting investment opportunities and enhance your overall investment strategy.

By Hugh Zaretsky
Real Estate Investor, Agent, Speaker, Training and Amazon Best Selling Author in 4 Categories

www.hughzaretsky.com

www.thelaunchbutton.net

www.eframily.com

[email protected]

PH: 941-216-0225

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The Unaffordable Housing Crisis

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By Rick Tobin

Can it be true that finding homes to live in using creative seller-financed transactions may soon become easier and more affordable than qualifying to lease or purchase a home with traditional financing options?

The typical home today is about $80,000 higher than it was just two years ago. The average monthly rent payment today is more than $1,000 higher than it was in 2020. Middle-income first-time buyers are unable to afford 70% of homes.

To qualify as a tenant, many landlords require that the tenant applicant’s income be three times the proposed monthly rent. In California where some average rents are $3,000 to $5,000 per month, the qualifying household income would need to be somewhere between $9,000 and $15,000 per month. Additionally, a significant deposit and the paying of at least one month’s rent upfront can be challenging for many tenant applicants.

Most Expensive Home Regions

San Diego is ranked as the #1 most expensive housing market in the nation, as per this U.S. News report. In more recent times in late 2022 and early 2023, San Diego’s home price-to-household income ratio almost reached an average of 15x (15 times), which is three times higher than the national average of 4x or 5x.

“In April 2023, the median listing home price in San Diego, CA was $999K, trending up 6.3% year-over-year. The median listing home price per square foot was $698. The median home sold price was $877K.” – Realtor.com

The main criteria for this Top 10 ranking of the most expensive cities in the nation included the median home price and average salary. In spite of using 2021 household price data, this analysis was recently published in May 2023 and is used as a forecast for the 2023 to 2024 years.

1. San Diego, CA

Average median home price 2021: $889,225
Average salary: $67,200

2. Los Angeles, CA

Average median home price 2021: $807,498
Average salary: $63,056

3. Honolulu, HI

Average median home price 2021: $581,658
Average salary: $61,860

4. Miami, FL

Average median home price 2021: $490,162
Average salary: $54,790

5. Santa Barbara, CA

Average median home price 2021: $464,954
Average salary: $62,020

6. San Francisco, CA

Average median home price 2021: $1,082,875
Average salary: $86,590

7. Salinas, CA

Average median home price 2021: $986,702
Average salary: $56,350

8. Santa Rosa, CA

Average median home price 2021: $828,156
Average salary: $64,080

9. San Juan, Puerto Rico

Average median home price 2021: Not Available (N/A)
Average salary: $31,650

10. Vallejo & Fairfield, CA

Average median home price 2021: $562,567
Average salary: $64,270

The ranking of Santa Barbara, California as #5 is a bit confusing because of the incredibly low median home price that is listed for this region. This data count estimate must take into consideration inland properties that are very far away from the ocean. Homes near the beach in this beautiful region are closer to $2 to $20 million.

Rising Household Income Requirements

Data provided by the California Association of Realtors (20% down payment and 30% front-end DTI or debt-to-income ratio estimates) for the following Southern California counties shows us how ridiculously high the household income requirements now are to purchase a median (or middle) price home based upon the rising mortgage rate trends:

Ventura County: A$205,200 household income is required to purchase an $828,750 home.

Los Angeles County: A $185,200 household income is needed for a $746,750 home.

Orange County: A $296,400 household income is required for a $1.2 million dollar home.

Riverside County: A $148,000 household income is needed for a $597,000 median home price.

San Bernardino County: A $115,200 household income would be needed to purchase a $464,500 home.

Please note that these “median” home prices are right in the middle of the county home averages. For properties close to the Pacific Ocean, the home prices may be 2, 3, 5, 10, 15, or 20+ times higher.

The average owner-occupant in recent years has used just 6% as a down payment instead of the 20% down payment number used for this California Association of Realtors (CAR) estimate. As a result, it’s more likely that the average loan amount for each borrower would be higher and also require mortgage insurance for loans above 80% loan-to-value (LTV). If so, the qualifying household income would probably be much higher than what’s listed on this county forecast estimate provided.

Disappearing Homeowners Insurance

In California, both State Farm and Allstate announced that they will no longer offer new homeowners insurance policies. In recent times, Geico closed down all of their California offices and Progressive stopped advertising in the state. The California FAIR Plan with limited coverage and higher costs than other plans, which is considered the last resort option for homeowners who can’t seem to qualify for other insurance plans, just announced another nearly 50% hike for their annual premiums.

Florida (#1 most expensive homeowners insurance state), Louisiana, Texas, and many other states are tightening up their insurance policy requirements as well or pulling out of these states, so it’s not just happening here in California. Some homeowners insurance policies in Florida are three or four times higher than the national average near $1,800 due to the extreme flood and weather risks there.

Right now, many insurance companies are focused more on not writing new homeowners insurance policies. What happens when some of them later change these restrictions to not allow the renewal ofactive policies?

More than 70% of all homes in California have a mortgage (lenders require active insurance in place to protect their interests also), which is higher than the national average. With fewer insurance plan options available, an increasing number of homeowners will be inspired to sell here in California, Florida, and elsewhere while pushing the listing inventory supply higher.

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Declining Purchasing Power for the Dollar

It’s not Americans “spending too much” that’s causing record inflation. Rather, it’s the combination of the record printing of dollars and the skyrocketing government debt spending that’s crushing the purchasing power of our dollar while making housing increasingly unaffordable to lease or purchase.

Generally, the loosening or tightening of the money supply is the root cause of periods of extreme inflation or deflation. For example, the M1 (cash, checking, etc.) money supply went from $4 trillion in January 2020 to $20 trillion in October 2021 in just 22 months. As the supply of new money reached the economy, the purchasing power of the dollar rapidly declined and fewer goods, services, and assets could be purchased with the same dollars as I’ve shared before.

Paying Loans Back

At some point, debts have to be paid back if the borrower doesn’t plan on filing for bankruptcy. This is true whether it’s an individual or a billion-dollar corporation with two billion in massive debt.

After more than three years of deferred student loan payments due to the pandemic declaration, millions of consumers will be faced with the reinstatement of monthly payment obligations for student loans starting in late August 2023.

Unpaid student loan debt reached more than $1.75 trillion and automobile loans surpassed $1.55 trillion by April 2023. It’s a $393 per month average payment for student loans. There’s another $1 trillion for all unpaid credit card debt at a 24% rate average.

Consumer spending usually represents about 70% of the US GDP (Gross Domestic Product). Student loans equal 7% of GDP. Approximately 64% of the $1.7 trillion in student loan debt has been in forbearance for the past three years, which equates to $1.1 trillion.

Millions of other homeowners haven’t made a monthly mortgage payment as well as far back as 2020. At some point in the future, mortgage lenders or loan service companies will also require the collection of monthly payments with or without a forbearance or loan modification plan in place.

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New FHA Bailout Loan Proposal

It appears that FHA is proposing a 0% interest 2nd loan bailout for the millions of their distressed mortgage borrowers who may be months or years behind in their payments. It’s called the Payment Supplement Partial Claim.

The previously proposed FHA bailout solution offered was a loan modification option which would have doubled or tripled the homeowner’s current rate while not dropping their payments at all. Again, there are millions of distressed FHA loans nationwide that are months or years behind.

Preparing for New Opportunities

As I shared in my previous article entitled A 33-to-1 Vacant & Distressed Home-to-Listed Home Ratio, there are potentially upwards of 18 to 20 million vacant (abandoned, 2nd, and rental homes) or distressed homes in the nation. If just a relatively small percentage of these homes are listed for sale or go into foreclosure, it may more than double or triple the national home listing supply while driving home prices downward.

If and when mortgage rates and other forms of consumer debt rates continue to rise right alongside the national home listing supply, an increasing number of sellers will welcome the creative seller-financed transactions that I share with my So-Cal Real Estate Investors Club members and with my real estate course students across the nation.

For example, how would you like to purchase a home with a minimal down payment, no formal loan qualification, and take over a 2.75% fixed mortgage rate payment that’s lower than a nearby rental?

Now is the best time to learn about creative real estate investment strategies that very few people truly understand well before the housing market begins to change direction yet again. Denial is no longer an option. If you’re the first person to go in a different direction than your competition, you’re more likely to be the first person to succeed due to your preparation.

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. 

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Are You Ready to Invest in a Volatile Real Estate Market?

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By Jimmy King, Founder, Contrarian RE Fund 1, LLC

The recent announcement by Blackstone the final close of its latest global real estate fund, Blackstone Real Estate Partners X (“BREP X”) with $30.4 billion of total capital commitments (the largest real estate or private equity drawdown fund ever raised), reflects confidence for investing in real estate during periods characterized by market volatility. In a news release announcing the fund, a Blackstone executive stated that the company has made some of their best investments in periods characterized by market volatility and dislocation.

The market is certainly volatile at this time, and plentiful opportunities exist to invest in distressed real estate.

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Being successful at these types of investments requires the ability to identify and acquire real estate properties that are being sold at steep discounts. Many of these opportunities exist in multifamily and manufactured home communities that are suddenly being made available for well under the original asking price as owners struggle with increased debt and/or escalating fees. Some are even selling for as little as 60 percent of their original value (2019 highs vs today) . And while opportunities exist, being a successful investor requires a great deal of insight, information and investigation before a purchase is made.

The Contrarian RE Fund 1, LLC, actively researches and identifies distressed real estate assets and reviewing if they are viable options for the fund’s “Value-Add” business model. If they are, the team of experts make purchase decisions regarding the properties by investigating the level of enhancements and improvements that need to be made for each property.

The “Value-Add” business model has realized significant profits since it was first implemented in 2009. By purchasing properties with low rental rates and making substantial physical and operational enhancements that improve both the property and resident experience, the model has been proven to be able to consistently achieve higher rental rates and refinance initial capital investment.

Some of the key factors to consider when making the decision to join a fund that invests in distressed real estate includes:

Size of the Fund

Are you interested in investing in a massive fund, like the $30.4 billion fund structured by Blackstone, or a fund that is less than $50 million? The key differences between massive and smaller investment funds are (JIMMY, WHY WOULD A PERSON CHOOSE A SMALLER FUND? FOR EXAMPLE, DOES A SMALLER FUND PROVIDE A FASTER RETURN ON AN INVESTMENT? ARE THERE FEWER PENALTIES/RISKS? ETC)

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Personal Interaction

A smaller fund will provide you with the opportunity to interact on a personal level with the management team, whereas a larger fund won’t go beyond the standard paperwork to update you on your investment. You’ll also have the opportunity to meet members of the team (the craftspeople and contractors who are working on a real estate renovation that you’ve invested in, for example). It’s highly unlikely that the management team at Blackstone is sharing their cell phone numbers with investors in that fund.

Decision Making Process

As an outcome of the personal interaction with the management team of a small fund, you’ll have the opportunity to contribute to the decision making process. While the team for a smaller fund brings strong real estate market knowledge on a local level, they will also likely be willing to accept input and ideas from knowledgeable investors. Opportunities will present themselves that the management team may not be aware of, but that investors can bring to the table, for the good of everyone.

Intangibles

While the opportunity to invest in distressed real estate is intended to show a profitable return, there are some intangible outcomes as well. For example, renovating properties will help to improve neighborhoods and communities by eliminating blighted real estate. This type of contribution goes far beyond the initial investment, especially when investors are personally familiar with the property and can visit it and feel pride in what they’ve accomplished.

As more and more opportunities to invest in distressed properties present themselves, the time to act is now. If this seems like an appealing investment option to you, be sure to take the time to research what’s available and which type of fund is the best fit for you.

James King is the Founder of the Contrarian RE Fund 1, LLC, and along with his team of professionals has successfully owned and operated more than 2,000 units across the United States. He can be reached at KingCommunities.com ([email protected]) or 562-208-7649.

Poplar Homes Expands to Arizona with Acquisition of Venture REI’s SFR Property Management Business

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Acquisition adds more than 150 homes to Poplar’s growing management portfolio, marks company’s entry into Arizona

CUPERTINO, Calif., — Poplar Homes, the tech-enabled property management company changing the way independent single-family rental investors and multifamily owners manage their rental properties, today announced it has acquired Venture REI’s single-family for rent property management portfolio. The acquisition marks Poplar’s entry into Arizona and adds 152 homes in Scottsdale to the company’s property management portfolio as part of its national expansion.

Venture REI’s short-term rental and investment client property management portfolios were not part of the transaction, and these properties will continue to be managed by Venture REI. Terms of the transaction were not disclosed.

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Over the past two years, Poplar has significantly expanded its doors under management through 16 strategic acquisitions. “We’re thrilled to be entering the Phoenix market, which is home to some of the largest single-family for rent operators in the country. The combination of Poplar’s model, which leverages technology with experienced on-the-ground property management teams, and Venture’s local expertise levels the playing field for the mom-and-pop investors competing with large institutional investors,” Poplar Co-Founder and CEO Greg Toschi said. “The slowing rental market is a great opportunity to demonstrate the power of Poplar’s model. In addition to having the data and operating leverage needed to properly price and market properties, our clients have the assurance of Poplar’s rent guarantee and eviction protection as well as the benefit of unique renter offerings that allow them to differentiate their properties in a competitive market.”

The acquisition is the latest in a series for Poplar, which serves individual property owners who control two-thirds of the $85 billion single-family rental market, owners of small multifamily properties and individuals looking for a better way to rent while pursuing their dream of homeownership.

Over the past two years, the company has significantly expanded both its doors under management and geographic presence through 16 strategic acquisitions. Poplar currently has 15,000 rental properties under management in 25 markets across 17 states and plans to expand to 20 new markets and reach 30,000 doors in 2023.

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“We grew our single-family rental portfolio organically and it was important that we provide our clients with a provider that offered a best-in-class experience,” said Venture REI Founder Dan Noma Jr. “Poplar shares our commitment to offering unmatched service. This, combined with its tech-forward industry-leading platform, offered the best fit for our team and our clients.”

Lindsay Shoenfeld joins from Venture REI to serve as Poplar’s property manager in Arizona. Poplar combines its proprietary tech-enabled property management platform with the expertise of local property management teams to provide individual property investors with access to the tools and services typically only available to large institutional investors. In addition to being able to track the performance of their investment properties in real time, Poplar clients have the benefit of their properties being managed by local property management professionals as well as guaranteed rent and eviction protection.

For renters, Poplar provides the ability to tour, get approved and rent properties online. They also have access to Poplar’s troubleshooting platform, which resolves two-thirds of maintenance issues remotely as well as local property management teams. In keeping with the company’s mission to partner with customers through every step of their real estate journey, Poplar’s StreetCred program is designed to help renters achieve their homeownership goals.

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Madison Ventures+ Launches Investment Platform to Invest In Affordable Manufactured Housing Communities

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M2 Communities will focus on improving existing manufactured housing communities in high-net migration locations across the Southern United States.

WEST PALM BEACH, Fla., May 30, 2023 — Madison Ventures+ (“MV+”), a private/venture equity boutique that combines capital investment with hands-on collaboration, announced today the launch of M2 Communities (“M2C”), a new MV+ investment platform designed to help combat the affordable housing crisis in key high-growth markets, while capitalizing on the investment potential of Manufactured Housing Communities (“MHC”), the most stable real estate asset class. M2C will focus its acquisition efforts in high-net migration markets in the Southeastern quadrant of the United States.

“Despite the country’s need for more affordable housing, and MHC’s status as the most affordable form of non-government subsidized housing, manufactured housing has been somewhat ignored by many sophisticated real estate investors,” said Bryan Gordon, Chairman and CEO of MV+ and M2C. “In fact, there have only been about 10 new manufactured housing communities built in the past two decades, and far more than that have gone dark due to redevelopment. The reality is, there is great opportunity in manufactured housing communities, and this is precisely the type of housing investment needed today.”

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Manufactured housing is a home unit constructed entirely off-site at factories prior to being moved to a piece of property. The cost of construction per square foot is considerably less for manufactured housing than for traditional homes constructed onsite. Over the years, the housing option has often been derided, but advancements in technology and building materials mean today’s manufactured housing bears little resemblance to the “mobile homes” of the past.

“As an investment, MHCs have always been and remain one of the most stable, recession-resistant real estate asset classes. Basically, this real estate class has not lost any money even in past recessions,” Gordon said. “We believe that now is the absolute perfect time to reinvigorate manufactured housing communities due to a combination of factors.”

Economic challenges, a worsening housing crisis and improved building quality are combining to create the best market in decades for manufactured housing communities. Private MHCs are projected to be the top-performing real estate asset class over the next five years, according to Green Street Advisors. With a U.S. housing shortfall of more than 5.8 million homes and rental costs skyrocketing, MHCs are becoming an increasingly popular option. M2C will focus its investments in states experiencing a high number of “transplants,” with initial emphasis on Florida, Georgia, Tennessee, Alabama, North Carolina, South Carolina, Virginia, Texas and Oklahoma.

“Many people think that the affordable housing crisis only affects large urban areas, but it is truly a need everywhere,” Gordon said. “There are rapidly growing populations in these states and each is grappling with how to accommodate the influx of new residents.”

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San Diego-based Muskoka Capital Partners is partnering with MV+ on the new investment platform and its founder, T.K. Frantz, will serve as President and Chief Investment Officer for M2C. Focused exclusively on recession-resistant property types, Muskoka Capital Partners is embedded in the analysis of long-term demographic trends. Its leadership team has a combined 66 years of real estate and capital markets experience focused primarily on multifamily, self storage, industrial and manufactured housing community property types – the top four performing commercial real estate property types over the past 25 years.

“I cannot think of a better time than now to help renew the promise of manufactured housing communities,” Frantz said. “The affordability these communities offer, combined with the advancements in building technology and materials make them incredibly attractive. By concentrating M2C’s efforts on those areas with a high migration rate, we will be able to impact communities where it is most needed.”

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.