Deeds & LLCs: Finding Success In Real Estate Investing In 30 Days

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By Tim Houghten, Staff Writer

Whether you’ve spent substantial amounts on real estate education and are still struggling to get results, or you are ready to make a big splash and claim your piece of the pie and invest, how can you start really gaining traction in the next four weeks?

Real estate investor and entrepreneur Jason O. Myles has become a magnet for people in both of these camps. He specializes in helping those that want to get real, and meaningful results from investing in real estate, quickly.

That’s true whether you’ve been hustling and grinding hard, but just haven’t gotten in your zone yet. As well as those with capital to invest, but who need to do it efficiently and effectively, while staying on track to their real objectives.

Deeds & LLCs – An Investor’s Toolbox

No matter where you are on your money and investment journey, Jason O. Myles has been there already. He has run into the frustrations and roadblocks, and has found how to consistently navigate them for optimal success.

Twenty years ago, Myles discovered the life changing advantages of making the leap into real estate. Before there was Facebook or Siri, he spent his spare moments going to the local library to read and learn everything he could about investing in real estate. He tried reaching out to educators and the experienced by writing them letters.

He admits that he didn’t make much money in those first few years. He saw others making money in real estate and knew it was real. He just wasn’t putting those dollars in his own pocket. He had tried to piece together some strategies and tactics from gurus, but when he took them into the field most people thought he was crazy or deluded.

He got frustrated, but wasn’t going to give up. Myles started calling everyone he could find to get answers. Finally, with a few tweaks, he put his first $6,000 check in the bank in just three weeks. Then, the next week he put an $18,000 check in the bank. He was hooked. It was real.

He got noticed by Robert G. Allen for the deals he was doing, and ended up crafting the manual they would acquire to train others to invest in real estate.

Robert G. Allen has of course become a mentor to many, and has been praised by successful leaders like Brian Tracy, Jack Canfield, Robert Kiyosaki and Stephen Covey.

It turned out that Jason Myles had quite a skill at creating systems and processes. That has since led him to be involved in tens of millions of dollars of real estate deals from Florida to Georgia, to the Carolinas, Ohio, Indiana and Texas.

Going beyond just starting in single-family homes, he has engaged in multifamily, land, and commercial and industrial deals.

Today, many come to him that have invested heavily in other real estate programs, and have come out without all of the tools and organization they really need to start knocking out those deals. As well as many with over $1M in liquid capital they want to put to work in real estate. Like the dentist from TX who started investing passively with Jason, and pretty quickly was able to move on from tinkering in people’s mouths all day to operating his own real estate investment firm.

How To Be Successful In 30 Days

It is important to point out that Jason O. Myles is adamant that he is not selling get rich quick and fast money programs. There are plenty of other people out there on the web that do that, if you are just looking for the next scheme to make a quick buck.

Instead, Myles has differentiated himself and his tools, by aligning his interests with his investors, and by structuring the processes that will help them start seeing actual progress inside 30 days.

Through several programs he has structured guides and systems that mean he isn’t making money unless his clients and students are. A refreshing change from what we’ve seen in the industry over the past few years.

Additional Resources For Active Investors

Via his website, www.RealEstatePro360.com, Myles¬ provides access to a variety of paths to take you to the next level financially through real estate investing.

For those limited on capital, who are ready to hustle to achieve things and make them happen, there is Ultimate Real Estate Hacks. A process designed to help investors put everything they need in place and at a minimum get their first deal under contract inside the first 30 days.

This includes using strategies like virtual wholesaling and flipping. Along with the documents, spreadsheets and calculators you need to quickly and accurately value properties, assess renovation costs by region and types of materials, and to connect with your success team. There are weekly calls and an online support group to get answers fast.

There are funding programs and partnership programs, which provide investors the resources and support they need to do real deals and make real profits.

For Passive Investors

For those with capital to invest, Jason provides guidance and processes to put that money to work simply, efficiently and passively. Methods that generate strong returns, in solid investments, without having to deal with contractors and property managers. It is about making your money work hard for you for cash flow and returns, while you actually get to enjoy your life. Get your piece of the pie and have a life worth living too.

What’s Next For The Real Estate Market: Blood In The Streets

It’s going to be okay Chicken Little.

During Realty 411’s exclusive interview with Jason O. Miles, he told us that he is “always bullish on real estate.”

He has certainly been in the business long enough to know what the cycles look like. As well as that there is always money to be made, and how to do it.

His newest book Blood In The Streets tackles some of the fear and pessimism out there, and busts some frequent myths about the market and investing. He doesn’t believe there is impending doom. In fact, he sees ongoing growth.

When there is a cooling in markets, he says it is all about positioning yourself in advance to take advantage of the great deals.

One of the ways that he is preparing investors to do this too is through the CARV Method. A way to evaluate potential real estate deals and to structure them for multiple exit strategies and to avoid leaving money on the table in these times as most do.

Get Your 4-Week Action Plan

If you are among those craving better results from real estate investing in the next 30 days, and to be able to invest with confidence, you can download your complimentary 4-Week Action Plan at www.RealEstatePro360.com.

There you will also find more of his story, books, courses, and how to get in touch with him directly. Or connect with him on social @jasonomyles. Then be sure to stop by and meet him in person at one of our upcoming live real estate events.

No matter where you are on your financial journey in real estate Jason has probably been there already, and can show you how he found the breakthrough and process to make it through to the other side.

Forbearance Bailouts and Refinances

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Image from Pexels

By Rick Tobin

The 2020 and 2021 years have been two of the most unusual time periods in world history, especially for the real estate sector. For example, millions or tens of millions of homeowners and tenants have been severely delinquent with their mortgage and rent payments while unemployment numbers rose incredibly high. However, home values have absolutely skyrocketed to all-time record high annual percentages and prices.

How is it possible for us to see record delinquencies with or without approved forbearance (“no mortgage payments paid and the lender agrees not to foreclose”) or loan modification agreements in place and record price growth at the exact same time? Don’t these two opposing situations contradict one another in a cognitive dissonance sort of way? In past years, record mortgage delinquency numbers would typically cause declining property values nearby because these home delinquencies or foreclosures would become the latest lower sales comparable for the neighboring homes.

The true irony of record delinquency numbers is that most homeowners created much more equity in their properties by just sitting there and not making any mortgage payments. As reported by CoreLogic’s Homeowner Equity Report, the total US homeowners’ annual equity grew $2.9 trillion between the second quarters of 2020 and 2021 with an average individual mortgage borrower’s gain of $51,500 in just one year. A deferral of 12 months’ worth of $2,000 per month payments that totaled $24,000 would still be less than half of the new equity gains.

Image from Pexels

In this article, you will learn about how you can refinance out of a forbearance or loan modification plan instead of losing all of your equity in a future foreclosure sale. For most American families, the bulk of their net worth originates from the equity in their owner-occupied residential property (single-family home, condominium, townhouse, duplex, triplex, or fourplex), so this topic point is quite relevant to millions of people today.

Let’s review next some of the most mind-blowing delinquency data that’s been published here in 2021:

$833 Billion in Unpaid Mortgage Balances

  • An estimated 15 million people lived in households that owed more than $20 billion in unpaid rent as of July 2021.
  • 7.43 million rental property units were not current.
  • 5.95 million owner-occupied housing units weren’t current.
  • 8.71 million lived in owner-occupied homes where the homeowners have little or no confidence in their ability to pay their mortgage.
  • 12.71 million lived in rental properties where the heads of household had little or no confidence in their ability to pay their rent.
  • Serious mortgage delinquencies were up 20% in July from June and were the highest recorded since 2010.
  • By mid-August 2021, 3.9 million homeowners were in active forbearance, which represented 7.4% of all mortgages nationwide and $833 billion in total unpaid principal.
  • An estimated 11.6% of all FHA and VA loans were in active forbearance.

Sources: U.S. Census Bureau and Black Knight Mortgage Monitor

How Hyperinflation Creates Wealth

Most people should know by now that historically low mortgage rates for borrowers is one of the main reasons why real estate values have boomed since 2013, depending upon the region. The vast majority of homeowners need third-party loans to buy their properties. Over the past decade, a very high percentage of homebuyers purchased their homes with 0% to 3.5% down payments with or without their own personal funds for loan programs like FHA, VA, or conforming that allowed gifted funds from family or seller credits.

Image from Pixabay

Historically, 7-year to 10-year boom cycles for real estate have been the norm. Yet, we haven’t seen significant price drops in a major metropolitan region, state, or across the nation. Do we still have at least another few years of potential double-digit home appreciation growth in our future or not?

Few investments have been a better hedge against inflation than real estate. On an annualized basis, home values generally increase in value on average at least as high as the published annual rates of inflation. The Federal Reserve must continue to keep rates artificially low or they may risk causing the housing bubble to pop.

The Federal Reserve’s ongoing policy of Quantitative Easing (create more money to boost asset values related to housing and stocks, especially) and their lesser-known Operation Twist policy (the simultaneous buying and selling of long-term and short-term bonds to artificially drive down mortgage rates) that they seem to turn on and off as needed with or without notifying the general public. With record high government debt levels today, the Fed has really no choice but to keep pushing inflation higher because one of their biggest fears is massive asset deflation like seen in Japan in the early 1990s after their own Quantitative Easing program failed miserably.

Rising inflation trends for various consumer goods and services like food, clothing, cars, and gasoline are not usually viewed favorably. However, rising home values tied to meteoric inflation trends are welcomed by homeowners who see their home values rise $50,000 to $100,000+ in a year.

Year-over-year inflation trends for August 2021:

  • Used vehicle prices: +31.9%
  • Energy costs: +25%
  • Southern California home prices: +22.1%*
  • National home prices: +19.7% (a new annual US record)*
  • Export prices: +16.8%
  • Apparel / clothing: +15.52%
  • Import prices: +9.0%

*July year-over-year housing price trends

Sources: U.S. Bureau of Labor Statistics, CoreLogic, and California Association of Realtors

Forbearance and Loan Modification Refinance Solutions

A homeowner who hasn’t made a mortgage payment in several months, a year, or almost two years probably has a few options to exit out of this dire financial situation. First, they can sell the home and lease another property if their credit scores aren’t too negatively impacted.

In September 2021, multifamily apartment units reached an all-time record high of $1,558 which was an all-time record annual 11.4% increase, according to Yardi Matrix. For single-family home rentals, the monthly rents are normally much higher in the $2,000 to $5,000+ per month range, depending upon how close they are to an ocean or prime metropolitan region.

Image from Pixabay

Or, the homeowner can attempt to save their home and end their existing approved or unapproved forbearance (“no payment, no foreclosure”) or loan modification situation, and refinance with a new loan that may allow cash out, a lower rate, and better monthly payments. The mortgage companies or lenders that will consider refinancing a mortgage which is severely delinquent are likely to request that the homeowner exit out their forbearance agreement, make a few payments, and then complete the new refinance closing.

Oftentimes, a homeowner who has been in forbearance cannot provide tax returns or more formal income verification. As a result, more lenders today may consider qualifying the borrower applicant with anywhere between zero and 24 months’ worth of bank deposits while closely analyzing the averaged bank deposits. In some cases, a government-backed mortgage product may allow an almost “No Doc” loan program with a financial hardship letter that may reduce the monthly principal and interest amounts by 25%, as recently announced by the Federal Housing Finance Agency (FHFA) and the Federal Housing Administration (FHA).

For more details in regards to these new financial solutions to exit out of forbearance and loan modification programs, refinance, and save your home, please visit my website at www.realloans.com.

Rick Tobin

Rick Tobin has a diversified background in both the real estate and securities fields for the past 30+ years. He has held seven (7) different real estate and securities brokerage licenses to date, and is a graduate of the University of Southern California. Rick has an extensive background in the financing of residential and commercial properties around the U.S with debt, equity, and mezzanine money. His funding sources have included banks, life insurance companies, REITs (Real Estate Investment Trusts), equity funds, and foreign money sources. You can visit Rick Tobin at RealLoans.com 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.

Caveat Investor (Part 2)

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Image from Pixabay

By Bruce Kellogg

#6 – Lending

Here are four things to know about lending:

A) On a purchase situation, the appraiser will bring it in at the contract price if they can. (That’s why they ask for the sale price in advance!) They try not to come in below the contract price, but they scrupulously won’t go above it.

B) On a refinance, appraisers tend to come in lower to protect the lender. Don’t expect a high appraisal because you’ll be disappointed.

C) Do not think “No Points” is a bargain. It’s a “come-on”! Lenders seek a certain yield, so any concession on points they make up with the interest rate. There’s no free lunch.

D) My adult son started a refinance with an online lender. Part way through, he found a better deal, canceled the application, and pulled the loan package. The former loan agent howled. What do you think? Is loyalty required when you are getting a loan online?

#7 – Property Managers

Image from Pixabay

Most property managers are honest and hardworking. They deal with tenants. WHEW! No fun! But here are some caveats for you.

A) Most property managers do not make the effort to inspect unit interiors regularly, so some tenants run down the unit.

Insist on quarterly inspections. Pay extra if necessary. It’s cheaper than accumulating unit damage. If your manager won’t/doesn’t do it, it’s time for “NEXT!”

B) Some managers make work for their contractors and handypersons, some of whom are often relatives and friends. They authorize unneeded repairs. Be alert to this. (I got conned out of an $8,700 septic tank installation once. The manger was in cahoots with the county sanitarian.)

C) Some managers have “kickback” arrangements with the people they hire.

D) Some managers apply a percentage “markup” to the parts they buy. They say this compensates for the purchasing effort. This is a load of fertilizer! Simply buy the parts yourself after getting a detailed list from the manager or the contractor.

#8 – Education and Training

One buzzphrase in real estate lately is “move to the next level” or “scale up”. This is accomplished only by education, training, and experience. Yet as the real estate boom has grown, teachers, trainers, and mentors have proliferated.

Image from Pixabay

Consequently, it is essential that you pick quality contributors to your growth. Sometimes, it is hard to tell amidst all the hype.

You can be pretty confident of quality if you are involved with Realty411. Linda Pliagas, the founder and publisher, has had a career in real estate of several decades as a Realtor®, multiple investor, and journalist/publisher. Her mission is to help investors grow and succeed. Realty411 Magazine and REI Wealth Magazine have high standards for their articles, and their expos nationally have high standards for their exhibiters and presenters. Charlatans are not tolerated!

Another resource is the myself. With 40 years as a Realtor® with over 800 transactions of all kinds, including owning over 300 investment properties myself, I offer readers the benefit of my experience. See the accompanying biography for contact information.

#9 – “The Rise of the Fake Gurus”

Please go to YouTube and watch “The Rise of the Fake Gurus”, which is a 21 minute detailed expose how fake “gurus” lure their victims from free “workshops” all the way up to $40,000-60,000 “bootcamps”. Definitely watch it at least once!

Wrapup

As the market continues to heat up, new investors are entering real estate all the time. This article is meant to highlight some of the larger risks, pitfalls, and cons they will want to avoid as they grow. Best wishes with that!

Bruce Kellogg

Bruce Kellogg has been a Realtor® and investor for 40 years. He has transacted about 800 properties in 12 California counties. These include 1-4 units, 5+ apartments, offices, mixed-use buildings, land, lots, mobile homes, cabins, and churches.

He writes and edits copy for Realty411 and REI Wealth Monthly magazines.

Mr. Kellogg is a recipient of an Albert Nelson Marquis Lifetime Achievement Award, listed in Who’s Who in America – 2019.

Mr. Kellogg is available for consulting about syndication, “turnkey” investments, joint-ventures, and other property purchases nationally, and other consulting assignments. Reach him at [email protected], or (408) 489-0131.

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′ South Florida Real Estate Summit

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When:
April 2, 2022 @ 9:00 am – 5:00 pm
Where:
Embassy Suites by Hilton Boca Raton
661 Northwest 53rd Street
Boca Raton, FL
33487
Cost:
Free
Contact:
Realty411.com
805.693.1497

Realty411 Celebrates 15 Years of Publishing Life-Changing Magazines that Have Helped Thousands of Readers Learn about Real Estate Investing

We are going ALL OUT for our South Florida Real Estate Conference and Networking Summit on SATURDAY, April 2nd in Boca Raton, Florida.

This is an educational and fun networking expo, featuring both local and national educators and real estate investing professionals.

Join us early at 9 am for a complimentary network breakfast with fellow investors from throughout Florida and around the nation.

Realty411 will virtually unite the most successful, knowledgeable and savvy investors in the REI (Real Estate Investing) industry to help our readers make educated and informed decisions.

Joining us on this special conference to help guide our readers will be top industry experts ready to spill their secrets of success. Get educated, motivated and prepare for an amazing 2022 and beyond.

Normally, in-person networking events of this caliber are hundreds of dollars to attend, but Realty411 is making this special weekend conference COMPLIMENTARY for investors of all levels who have a sincere desire to begin and/or expand their real estate holdings.

Since 2007, Realty411 has produced real estate-investing events and expos throughout the nation — now in 12 states across the United States. Now, it’s time to connect with our readers in person.

Realty411.com is the longest-running real-estate investor media company publishing online and print magazines, e-newsletters, webinars and podcasts. Our mission to educate and empower everyone to invest in real estate.

Please register and further details of this event will be sent, click here:

https://www.eventbrite.com/e/realty411-south-florida-real-estate-summit-tickets-230614573397

Do you have questions about participating in one of our virtual or in-person events? Please contact us directly for additional information or for information about exhibiting at this event: 805.693.1497 | email: [email protected]

Realty411’s Silicon Valley Investor Wealth Summit

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When:
February 26, 2022 @ 9:00 am – 5:00 pm
Where:
DoubleTree by Hilton Hotel San Jose
2050 Gateway Place San Jose
CA 95110
Cost:
Free
Contact:
Realty411.com
805.693.1497

Learn the latest new niches and insight in real estate, plus connect with influential investors from across the nation!

Join Us at Realty411’s Silicon Valley Investor Wealth Summit

Guest will discover the benefits of real estate investing, plus learn to expand an existing portfolio.

Learn the latest new, niches and insight in real estate, plus connect with influential investors from across the nation in San Jose, California.

Realty411’s Silicon Valley Investor Wealth Summit will be held Saturday, FEBRUARY 26TH, beginning at 9 am to 5 pm.

This complimentary one-day event hosted in the heart of San Jose, the tech center of the nation, is designed to foster a premiere networking environment for real estate investors, brokers/agents, entrepreneurs, private lenders, mortgage originators, business owners, real estate educators, and interested individuals ready to learn to invest.

Other events charge hundreds of dollars, but this day is truly PRICELESS.

Our mission is simply to provide real estate resources so that others can also learn about the benefits of long-term real estate investing, in and outside of California.

Since 2007, Realty411.com, the home page of Realty411 magazine, has been the leader in REI resources for real estate investors around the nation, as well as our readers internationally. Join us and network with industry leaders right in the heart of America’s technology industry: Silicon Valley.

OUR COMPLIMENTARY CONFERENCE HAS BEEN THE #1 REI SOURCE IN SILICON VALLEY FOR 15 YEARS!

THIS IS YOUR CHANCE TO LEARN IN PERSON AGAIN.

  • Meet Local + Out-of-Area Investors
  • Learn from Leaders & Industry Pros
  • NON-Stop Tips for Real Estate Success
  • Meet TOP Leaders in Real Estate Investing
  • Bring Numerous Business Cards & Connect
  • Both Local & National Experts in Attendance
  • Meet Others with Common Goals and Mindsets
  • Learn with long-term leaders in the REI Industry
  • Receive the latest REI Knowledge from Real Investors
  • Save money with Realty411VIP.com‘s Merchant Discounts
  • Network with Other Professionals in the Real Estate Industry
  • We Have Been Sharing Life-Changing Information for 15 Years

The agenda for this event, as well as details about our special speakers, will be released soon. Please register to receive all event updates.

Realty411 magazine is based in the Central Coast of California, Santa Barbara County. Since 2007, we have dedicated our time, resources and energy to help expand real estate knowledge and education by providing complimentary magazines and expos to the general public.

Learn more about Realty411 at:

http://realty411.com or http://realty411guide.com or http://realty411expo.com

Our second publication, REI Wealth, was specifically developed and designed for online readership.

Learn more about our digital-friendly publication, which is now also available in print: http://REIwealthmag.com

Guests can enjoy complimentary copies of both publications at this special one-day Silicon Valley Investor Summit.

Realty411 Has Helped Investors Grow Their Portfolios Since 2007

Realty411 magazine was first published in 2007 and is now the longest-running publication owned by the same owner. Based in Santa Barbara county, Realty411 has reached thousands of readers and online followers in person with their national events. Realty411 has hosted events in 12 states reaching thousands of readers.

In 2020, when the pandemic began, Realty411‘s virtual events began with much success. Since then, Realty411 has reached close to 10,000 investor/readers across the nation. Realty411‘s publisher and founder, Linda Pliagas, has over 17 years experience as an active real estate agent in the State of California (CA DRE #01355569), plus a bachelor’s degree in journalism from California State University, Long Beach.

Linda has implemented creative real estate investing strategies since “Day One” — She purchased her first property in Los Angeles with zero down by uniting private capital and a traditional mortgage wrapped with a seller-financed second trust deed. Currently, Linda and her family own and manage a multi million-dollar portfolio of rentals, in and out of state. Linda has been a landlord consecutively for over 20 years and has owned rentals in five states (California, Arizona, Texas, New Mexico, and Louisiana).

Please check back here or Realty411.com for regular updates on how we are coping with the new norm of “social distancing”, thank you. We are abiding with all CDC guidelines and State of California mask mandates for this event. Realty411 will continue with more events throughout California and around the nation in 2022.

For information about speaking or sponsoring an exhibitor booth, please contact us at: 805.693.1497 or 310.994.1962.

Caveat Investor (Part 1)

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Image from Pexels

By Bruce Kellogg

Why Caveat Investor?

There have been many changes in real estate since the boom began in 2010 after the Great Recession. To name a few: 1) Real estate licensees have increased about 40%. 2) Syndicators are gobbling up apartments, self-storage, mobile home parks, and industrial warehouses. 3) Brokerage companies are paying cash and “flipping” houses using venture capitalists’ money. 4) Brokerages are hiring agents like employees with salaries, vacations, health insurance, retirement plans, and stock options. 5) Developers are building whole communities of houses for rent. There’s a lot more, of course, but no time to exhaust the subject.

See the accompanying chart. Markets appear to be in the late stage of their up-cycle. As always, change is coming.

This article is my survey of many aspects of real estate where readers and investors need to be cautious and diligent in this expansive and innovative real estate environment. Every effort was made to address the major places where investors could get cheated or financially hurt in other ways. So, here goes.

#1 – Homebuying

Many homebuyers are making offers without inspection contingencies in an attempt to win in competitive bidding. The same is true of “as is” purchasing. Buyers are also not scrutinizing property condition disclosures from sellers. All of this is risky and imprudent. Deal with this as best you can. You can always walk.

#2 – Brokers and Agents

Reportedly, 40% of the new agents in California were licensed only in the past two years. (Other places are probably similar.) The average agent does 3-4 deals per year, so they might have 8 transactions under their belt. These are beginners, or novices, even though their business card might have “senior” in their title. “Junior or apprentice” would be more like it. Pick an agent with 10 years or more of full-time experience, and over 6o closed transactions, primarily with the type of property you are working with. Hire a pro.

Image from Pixabay

The other thing you need to watch out for is agent/brokers exaggerating their accomplishments and/or qualifications. I saw a flyer recently where a pair of new agents boasted of selling 250+ listings worth $250+ million. What they had done is taken the whole company’s production and taken credit for it. Brokers and sales managers are supposed to review and approve all agent advertising, but they don’t. So protect yourself. Be skeptical of “puff” in the advertising you receive. Or ask for proof, if there is any.

 #3 – Syndications

There are a lot of trainers and ”gurus” traversing the countryside teaching how to do syndications. The attraction is that you can quit your job and become wealthy. They present testimonials, picture luxury homes, and stand next to exotic automobiles. So, a lot of sincere but inexperienced people sign up. Lately, there is a huge demand for apartments by syndications that might overpay, buy wrong properties, or mismanage the 5-7-10 year project. It’s easy to make faulty or fraudulent projections on a 10-year EXCEL spreadsheet.

The other thing is that new syndicators are taught to pay experienced syndicators with good credentials to lend their qualifications to the project for a portion of the ownership. This makes the new syndicator look better. But are they really better, or still inexperienced beginners? Would you bet your money?

#4 – Turnkey Investing

Image from Pixabay

Distance investing in “turnkey” properties can be viable if it is done right. Needed are a rehab with quality materials, all necessary inspections, and all permits signed off. Many turnkey operators skimp on these to increase their profits. A prudent investor would visit the area, inspect the property, review the  inspections and permits, and interview the potential property manager. “Armchair investing” is not enough because once you buy, it’s yours. The others could split, and you’re on your own.

I had a client who wasn’t given promised repairs. The city inspected and threatened to prosecute him in Cleveland while he lives in Palo Alto, California. He fired the do-nothing property manager, hired a new one, got the repairs done, and salvaged his situation. It’s a quality, brick home in a good area with a quality tenant and good cash flow, but a “passive investment” it was not.

#5 – Fix & Flips

Image from Pixabay

Much of the talk on TV, in the media, and online is about “fix & flips” of houses, and even larger properties. Every now and then the news reports the average profit is $60,000+ per flip. You can do one every six months, part-time! Really? Well, the $60K “profit” is not calculated to include materials, labor, permits, advertising, and holding costs. Big difference! Perhaps this is why 80% of “fix & flip” entrepreneurs reportedly quit after their first project.

Now, if you want to try it, do it right. 1) Estimate the costs accurately. 2) Estimate the “After-Repaired Value” (ARV) accurately. 3) Hire a competent, reliable contractor. 4) Select the right type of house. No two bedrooms. Too small. No Victorians. Antique money pits! (Disclosure: I live in one, built in 1898.) Ideal are 3-5 bedroom, modern-construction “tract” homes on standard city lots, bought right. Do not compromise and “reach for a deal”. Pass, and keep looking. As they say, “You make your  profit when you buy.”

Bruce Kellogg

Bruce Kellogg has been a Realtor® and investor for 40 years. He has transacted about 800 properties in 12 California counties. These include 1-4 units, 5+ apartments, offices, mixed-use buildings, land, lots, mobile homes, cabins, and churches.

He writes and edits copy for Realty411 and REI Wealth Monthly magazines.

Mr. Kellogg is a recipient of an Albert Nelson Marquis Lifetime Achievement Award, listed in Who’s Who in America – 2019.

Mr. Kellogg is available for consulting about syndication, “turnkey” investments, joint-ventures, and other property purchases nationally, and other consulting assignments. Reach him at [email protected], or (408) 489-0131.

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.

Avoiding Package Delivery Holiday Horrors

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By Mo Cheema, Position Imaging

Adobe Digital Economy Index predicts online shopping spending during the 2021 holiday season is poised to break all previous records. According to Adobe’s Holiday Shopping Report 2021, “Record demand for ecommerce expected to drive holiday spending online to $207B.” In addition, the same report cites that “Cyber Weekend is projected to draw in $36B, 17% of the whole season,” and that “Cyber Monday will draw in $11.3B, Black Friday $9.5B, and Thanksgiving $5.4B.”

To say that all this cyber shopping creates an enormous amount of items to be delivered is an extreme understatement. Postal Analytics places the amount of packages the U.S. Postal Service (USPS) expects to deliver at 200 million starting the week of December 10th through Christmas, and CNBC states that UPS expects to ship 750 million packages this holiday season.

To prepare for this massive volume, FedEx said it was hiring 70,000 seasonal employees, and UPS said it would hire 100,000. This type of preparation is within the budget if you have billions of dollars in revenue, but what about those on the receiving end of all these packages? How do large apartment complexes deal with this onslaught of items? How can they protect all these packages from theft? For them, hiring seasonal help to process and secure every package is not in the budget.

Lobby Grinches

Unfortunately, the increase in package delivery heightens the opportunity for theft, and apartment complexes are no exception. According to the researchers at Rensselaer Polytechnic Institute, thefts equate to 1.7 million packages stolen or lost every day in the U.S. All these thefts have left people on edge, especially in densely populated cities where residents are now pointing their finger in the landlord’s direction for a solution.

A New York Times article titled, My Packages Keep Getting Stolen. What Can I Do? says, “The landlord could argue that they were taken when a tenant buzzed in the wrong visitor; that a tenant mistakenly took the wrong package; or that the delivery was lost in transit and never arrived.” These statements claim the landlord has no responsibility for residents’ packages. This sounds a bit absurd since e-commerce is now such a critical part of our lives.

It seems the landlords whose opinions helped shape this NY Times article, were not aware of recent developments in apartment package delivery systems that combine Artificial Intelligence (AI) and computer vision to provide a complete self-service experience for residents receiving packages. These automated systems don’t require a fork-lift upgrade construction process—but rather offer an elegant shelving system that typically installs in a day.

Apartment Residents On The “Nice” List

Staff members at large apartment complexes are not trained to logistically process and protect hundreds of packages that arrive in the lobby during the holiday season—they need a secure and automated system to govern these items to their final destination.

The Dime is one large apartment complex that has embraced this new package delivery system to help address these concerns. Located in Brooklyn, NY, The Dime boasts breathtaking views of the Manhattan skyline and Williamsburg Bridge and offers 177 rental residences in studio, one, two, and three-bedroom layouts. Assuming each of the 177 rentals has at least two individuals, and they are on the Nice List, a conservative estimate is that each individual will receive at least three holiday gifts via mail. That means that there is a potential of 1,062 additional packages being sent to the lobby for processing over the holiday season.

As part of The Dime’s residential amenities program, their package delivery system, called Smart Package Room, eliminates inefficient basic package rooms that require human interaction to retrieve items. Couriers simply scan package labels at the system to automatically assign items and notify residents of arrival. Computer vision technology watches each package until residents scan their QR Codes at the smart kiosk showing package location within the package room. Using laser guidance, the system provides visual and audio prompts to ensure the correct item is picked up.

If landlords want to reduce holiday stress on both the staff and residents, they need to start automating the package delivery and resident reception process. The volume of e-commerce deliveries will not be diminishing anytime soon.

With 68% of the world’s population expected to live in urban areas, according to the United Nations, package delivery management solutions need to be considered seriously at apartment complexes. Why not avoid the holiday horrors and make it more convenient to process e-commerce deliveries—all year long—for everyone involved— including the carriers?

Mo Cheema

Mo Cheema is the Director of Solutions Design and Implementation at Position Imaging. He is designing omnichannel retail fulfillment solutions using the iPickup platform. He also had a highly influential career at UPS, where he spearheaded several new product and business concepts, developed a strategically aligned product road-map to streamline the global last-mile delivery for drivers, and routinely engaged with the senior-level executives to influence investment decisions.

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.

Compliance in Real Estate: Why It’s Important for New Agent Success

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By Rudy Kusuma

No matter the industry, one of the key components to success is how we manage our ethics, relations with others and adhere to the regulations we are expected to follow. Conflicts and compromises are a part of work life, but in real estate, we are expected to negotiate with a variety of clients and other professionals on a daily basis. It is a challenging industry to navigate, but by learning the art of compliance early on in your real estate career, you can set yourself up for success.

Compliance in real estate can become complicated very quickly and impact all aspects of the job, from how we bring in clients to managing contracts to maximizing profits. While many understand this, few realize its importance.

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I know how scary it can be as a new agent. When I started out in 2007, it was a time of uncertainty – the real estate market was about to crash and my second baby had just been born. I had a family to feed and had no other choice than to succeed.

I realized the way things had always been done wasn’t necessarily the right way, and that there had to be a way for me to make enough money to care for my family without spending all my time chasing leads. I want to help other agents just beginning their journey to skip over those difficult hurdles and be well on their way to reeling in the benefits this great career can provide sooner, rather than later.

Compliance and Career Management

Compliance is the biggest single advantage you will have when it comes to managing contracts. This is the part of the process that can have a big impact on your client’s satisfaction with their purchase, your profit margin and so much more.

When you do your job right by marketing properties correctly, finding the right properties for your client, coordinating the home inspection, negotiating the best price for your clients and handling all the contracts, you are then at an advantage to set your own fees and commission. Real estate fees are not regulated by law, so when negotiating finances and pricing, don’t forget to include your own hard work in the math.

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I remember being a new agent and wanting to micromanage all aspects of my clients’ home buying process, and I am sure you are eager to be hands-on every step of the way, too. However, there comes a point in our career when you cannot market, negotiate, manage contracts and also have that personal relationship with your customers without experiencing agent burnout or something falling through the cracks.

When this point comes – and it will, I guarantee it – consider delegating the contracts. A delegated supervisor can assist in complying with the Real Estate License Act and Commission rules and help take some off our plate while we focus on what is really important, our customers. You will then be able to remain not only compliant with the regulations of your profession but maximize your customer’s satisfaction.

Beyond Technology

Many professions have been disrupted by technology and real estate is no exception. Buyers turn to sites like Zillow and Trulia instantly when starting their home search, and apps like DocuSign are making contract signing between parties an electronic process. The industry will continue changing, forcing real estate agents to adapt.

I know that can seem scary, especially as a new agent, but there is plenty of information to be found and used that isn’t on the Internet and needed during the home buying and selling process. For starters, there are criteria home buyers have in mind that aren’t included in online listings – everything from local amenities to the best neighborhoods for each family’s unique need.

You know the local market, what the best schools are, and the best neighborhoods in the area are for your clients. You probably even have knowledge of pending commercial developments and other neighborhood insights. Your client’s perfect home goes far beyond a white picket fence and granite countertops, and no online database can ever replace your intrinsic knowledge of the market.

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Perhaps the biggest advantage in our clients turning to us, the agent, is finding those hidden gems not posted on MLS. We know there are plenty of reasons a homeowner might not want their home on for-sale sites, and many real estate agents have pocket listings, or listings only they are allowed to sell. By building up your connections with other agents and builders, you can create an internal database of these types of listings to share with our clients, weeding out the need for technology to remain the sole way for buyers to find their dream home.

The first year as a real estate agent can be a tricky one, but understanding the regulations of the profession and standing behind a core set of values can lead to crushing it early on in your career. Stay compliant, use your knowledge to your advantage, and watch your income soar.

About Rudy Kusuma

Rudy Kusuma, founder and CEO of Your Home Sold Guaranteed, is the “Real Estate Agent Millionaire-Maker” who helps real estate agents develop their own $4 million GCI teams. He has been featured in Inc. Magazine and has co-authored two best-selling books. To develop your own million-dollar team, visit https://yourhomesoldguaranteed.com/our-story.

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.

Pros and Cons: Short Term Loans vs. Long Term Loans

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Image from Pixabay

By: Michael Mikhail, CEO Stratton Equities

Real estate investment loans can be tricky and it can be unclear at times which ones are the best. While there are many versions of loans, let’s go to the basics. There’s a time frame that you need to pay for your loan. It can be on the shorter side ranging from months to a couple of years and long-term loans can take more than a decade to pay off. Now, there are pros and cons to each of these and one of them may be a better fit depending on your loan scenario.

Types of Short Term Real Estate Investment Loans:

● Bridge Loans
● Hard Money Loans
● Fix and Flip Loans
● Foreclosure Bailout Loans

Types of Long Term Real Estate Investment Loans:

● Soft Money Loans
● Rental Loans
● NO-DOC Loans
● Stated Income Loans
● No Income Verification Loans

The Differences between Short Term Loans & Long Term Loans

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1) The Approval Process

Generally, short-term loans have a quicker application and approval process. Since they are a shorter commitment, lenders may be more willing to approve a short-term loan than one they would be stuck in for close to a decade. For both types of loans, the lender wants to make sure that the borrower can pay them back but it is less risky when the loan is only for several months. Due to the quick approval process, short-term loans tend to be better if you need money sooner rather than later. Also, thanks to the shorter time commitment, short-term loans tend to require less documentation to prove you will pay the loan back.

While long-term loans require more documentation to prove to the lender they want to be in a long-term agreement with you. Having to look through more documentation and having to do more research into whether you are a responsible borrower will make the approval process take a lot longer.

Finally, short-term real estate investment loans tend to have much higher approval ratings. Since it’s a shorter commitment, people are much more likely to approve a borrower who has a bad credit history or not too much of one. They may instead ask for collateral but regardless the approval process is easier. Conversely, a long-term loan is a longer and harder approval process. The lender tends to really look at all the details and thus has a much lower approval rate.

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2) Interest Rates

For a short-term loan, borrowers will be more likely offered high-interest loans. Due to the short application process and the fact that it tends to be more lenient and flexible, private lenders tend to offer short-term loans with significantly higher interest rates. This is why for short-term loans you want to shorten the repayment period as much as possible. You don’t want to spend 2 years repaying a loan with high-interest rates. Think more about paying it off in months rather than years.

With long-term loans, you are more likely to receive a lower interest rate. The lender has done a lot more research on you, they think they know you will pay off the debt so they are more likely to offer you a lower interest rate. However, make sure to calculate the math, you may end up spending a lot more money over many years with a small interest rate than a much higher interest rate over a few months. For long-term loans, the lower interest rate with a much longer repayment timeline can cost you in interest rates as much as your initial loan was. So with interest rates you want to be careful and to do the math.

3) Loan Payment Schedule

Due to the nature of short-term loans, which are over a much shorter time period, payments may be needed much more frequently. If the loan is only for a few months, then the repayment may be biweekly or more frequently. On the other hand, if it’s a long-term loan, you may not be paying monthly but every few months or every quarter. Thus, if you don’t have a steady income at your company, it may not be a good idea to do a short-term loan because you can’t make all the frequent payments.

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4) Amount of Money

With a short-term loan, you are more likely to be only able to borrow a smaller amount of money for your loan scenario. Since the real estate investor needs to repay the amount of money in a short period of time, it is unlikely that a lender would be willing to lend a large amount of money. Since a larger amount of money carries a larger risk, a private mortgage lender will be hesitant to offer you more than a smaller amount. While with long-term loans, lenders know more information about you and so would be more likely to increase the risk and lend you more money.

What’s better for your investment property? Long Term Loans or Short Term Loans?

There is so much to know when it comes to loans so it’s important to educate yourself on all the pros and cons before making any decisions. Make sure to be cautious before you agree to anything.

Each loan scenario is different based upon the borrower’s credit score, investment experience, liquid assets, and reserves. The loan will always be structured or calculated based upon those results.

The best way to discover which is better for your investment property is to contact a direct private money lender to assist you with the purchase of your investment property.

Michael Mikhail, CEO Stratton Equities

Michael Mikhail is the Founder and CEO of Stratton Equities, the nation’s leading hard money-lender to national real estate investors, with the largest variety of mortgage loans and programs nationwide.

Having launched Stratton Equities in early 2017, Michael has always been an entrepreneur and innovator in the real estate market, purchasing his first home at 19.

A serial entrepreneur with a foresight for business opportunities, Michael had a slew of small businesses prior to launching Stratton Equities. One of his most prolific ventures was a car wash connected to a gym he was affiliated with in Florida during 2001-2002 while attending college.

It wasn’t until he graduated from Florida State University with a degree in Business, that he officially joined the mortgage industry in 2003 and decided to travel to explore his options globally.

After travelling to 19 countries in 5 years, Michael knew two things; he wanted to start his own business and launch it in the United States. He knew that moving back to the states was the best place he could start something small and grow it into something infinite.

In 2017, Michael noticed how the mortgage industry had transformed after the regulations presented from 2008-2012, and knew it was time to set out something on his own, thus creating Stratton Equities.

Under Michael’s leadership, Stratton Equities has grown into one of the biggest leaders in the Mortgage and Real Estate industry across genres and platforms.

How To Create Passive Income As A Private Money Investor, Potentially Making Double Digit Returns!

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Image from Pixabay

By Gary Massari

About Gary: Gary and his partners build luxury homes in the San Francisco Bay Area, and sell them for $1,800,000 to $4,500,000, making substantial profits for the benefit of their investment partners. What makes Gary’s homes sell for top dollar in any market and produce such high returns will be covered in this article and at Realty 411’s expos events.

About Creating passive income: When your money starts working for you, then you can stop working for money! Creating wealth is great, and allows you to contribute your earned income to acquire income-generating assets. Passive income, when structured properly, is the fastest way to financial freedom.

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On my radio show, called “The Bridge”, I had the opportunity to interview Robert Kiyosaki, who taught me an amazing lesson about building wealth. He said, “Financial independence is making enough passive income to cover your monthly obligations.” I f you make $10,000 passively per month and your obligations are $10,000 a month, you are financially free. That simple statement changed my life and simplified my goals by making them believable and attainable.

I thought to myself: if I could make $100,000 on each home I flipped, and put $50,000 down on rental property, I could create a $500 net monthly cash flow. I would only need 20 rentals to meet my goal of $10,000 a month. Then, as I started making $150,000 to $500,000 on my flips, I could buy nicer homes in nicer neighborhoods and net $1000 a month of cash flow.

My thinking changed when I started making over $500,000 on my flips. I wanted to invest more money to create more passive income so I could improve my lifestyle and travel more – but the most important reason is that I want to leave my wife in a financial position where she can live any life she wants without worrying about money. I wanted to increase our business, so I set a goal to double itin the next 3 years, which meant building 7 to 10 luxury homes and thus increasing our revenues to $25,000,000 and our profits to over $3,500,000 annually.

We are able to grow our business so quickly thanks for our financial partners. We offer our investment partners 10% interest on their capital investment and up to 10% of the profit. This return is so attractive that I started investing in our own homes so we could get the same returns as our private money investors!

My favorite quote is: “success is just one step outside your comfort zone,” and for many of us, that step is pretty big! It is scary to step out, for fear of losing what little we gained. I always lived with the fear of being homeless, but I want to share this one little story that set me free of negative thinking.

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At the time, I was a managing partner in a mortgage company with 58 branches and 1200 loan officers, working with my first real estate mentor, Glenn. He came into my office and said, “Gary, what is your dream?” To which I said, “to retire with a $50,000 a month cash flow.” He responded, “Why are you capping yourself? You are capable of retiring with a $2,000,000 to $3,000,000 a year cash flow.”

So often, we lack belief in ourselves and think that it will never happen for us. Yet I stand before you as a witness – and wealth was never my goal, not even an afterthought! Did I ever believe I would build $4,500,000 luxury homes, making close to $1,000,000 profit on one home? Of course not! But now my thinking has changed, and I am building 7 to 10 of those homes a year – and now I am thinking about building 50 to 75 homes in a retirement community.

The mind is a crazy thing – it can keep us broke, or create a path of success to achieve our greatest goals. It all starts with a dream. And the funny part is, it takes just as much energy to dream big as it does to live small…

Here is a picture and a link to the newest home we are building: https://reifortunes.com/showcase-of-1637-greenwood-ave/ It is being offered at $4,500,000 off-market right now, and the best part is that we are 2 months from completion and already have buyers looking and offers coming in!

Our Realtor(R) brings us off-market homes to renovate and will be speaking with me at my next expo.

If you are interested in learning more about our company as we scale up our company, just set an appointment here: https://reifortunes.com/appt/gary-massari/

In our meeting, I will break down how I find homes, grow partners, create a team, and build luxury homes. You can learn more about me and my company here: https://reifortunes.com. Here is a short summary of how we do things. Our financial partners have been able to build capital in a very short period of time, making higher-than-market returns. Once they’ve built up enough capital, we encourage them to invest in rentals — residential or commercial —and we have the resources to help them. One of my favorite companies that helps people find rental properties in high growth areas is www.RealWealthNetwork.com. The CEO, Kathy Fettke, is the author of the book, Retire Rich with Rentals on Amazon – it’s a great read!

Here is the short summary of how we get such high returns:

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Step #1: We work with top producing Realtors(R) who work with high end builders or flippers. They find the off-market deals and bring them to us in exchange for the listing rights. Most of our homes, when completed, sell off-market. Please do not share this strategy with others, as you will create competition in your area. Our Realtors(R) make commissions of $2,000,000 to $3,000,000 a year and sell most of their homes off-market.

Step #2: We have a vision for the end product. When Greenwood was brought to us, the builder (owner) got in trouble for being over-extended and sold it to us to pay off his loan and make a little money. Unfortunately for him, he did not have the vision of a $4,500,000 home, and we did! We saw that this home could be extended to 3100 sf. from 2500 sf., taking the value of this home from $3,700,000 to $4,000,000. The additional value is my trade secret, and will only be shared in a personal meeting. You can book one here: https://reifortunes.com/appt/gary-massari/ or give me a call at 925-451-1619. Because of the many calls I get, I have a call filter so make sure to leave a message, and I will return your call.

Step #3: We find an architect who is current in designs and trends. In the current market, the “Modern Farmhouse” is a hot commodity. We have signature designs for both the exterior and interior, which we will share in a personal meeting.

Step #4: We split the contractor crews to have construction going on for the exterior and interior at the same time. This alone saves time and money.

Step #5: We complete the exterior first, including landscaping. This leaves two months to completion, which is our off-market time.

By sharing these steps with our financial partners, we give them the confidence that we have a well-oiled machine, with a contractor who is an owner in our company and on the job every day. Our crew is amazing, fast, and skilled at building homes in half the time other builders do.

Unfortunately, we can only partner with people with whom we have a prior relationship. So let’s get to know each other! If you are interested in learning more about our company,  book an appointment with me here: https://reifortunes.com/appt/gary-massari/ 

Happy Investing!

Gary

Gary Massari

Leading REI Coach & Trainer

Gary Massari is best described as a man with a long and successful past!  He is a top real estate investor and trainer who ran a successful peak-performance school and trained over 3000 realtors, investors and loan officers to become top income earners. He was also the managing partner of the largest mortgage brokerage company in northern California. Then there were his years as a co-host on the very popular radio show in the San Francisco Bay area where he taught financial literacy to over 25,000 weekly listeners.

Gary helps to build his students, followers, and team members their own unique master plan to achieve their REI Wealth.

He’s also a best-selling Amazon Author in four different categories, with more than 300 published works and the founder of Make Money Now Real Estate Investors. If there’s anybody in the know, it’s Gary. In fact, through Gary’s mentoring programs, he has had students become millionaires and build their own fortune 5000 companies.

But what makes Gary tick?  Gary believes that a person’s success requires a few things:  Hands on mentorship, community, education & local support.  He has built an entire REI club and network around those concepts. 

For Gary it’s about giving the full experience to the student so they can actually get out there and succeed.  One of his single-most sought after programs is the “Ultimate Master Plan for Real Estate Investors”, which contains many parts that help one become a master of their own life and their own investments.  His goal for you is to retire debt free, mortgage free and wealthy.

Gary breaks your master plan down into these critical areas:

  • A Personal Budget
  • Debt Retirement Including Mortgage Debt
  • 5-Year Income Plan
  • A Real Estate Purchasing Schedule for properties and notes
  • A Net Worth Balance Sheet to measure their wealth as they grow it.

One key service that Gary offers is his national REI Club where he provides to his membership all the key components of success that are so important to him: Hands on mentorship, community, education & local support.  And his education is always exciting, thorough and top notch!  Just look at some of these workshops:

  • How to find hidden deals and beat your competition to the Bank,

How to build their net worth and a create a debt free mortgage free retirement.

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.