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.

Image from Pixabay

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.

Image from Pixabay

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:

Image from Pixabay

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.

You’re Invited to A Houston Property Tour

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Dear Real Estate Investors,

It has been a while since we have taken a group of investors out to Houston to take a look at our Manufactured Homes, but it’s that time again and we are excited to finally be able to invite you out with us!

Investment Tour Information
Houston Manufactured Homes Tour
January 19th – 21st, 2021
(8-12%+ Cap Rate) Opportunities

Come with us to Houston as we take our investors on a tour of these manufactured homes. We will show you how we are able to generate an 8-12%+ cap rate from these properties and show you first-hand how the pandemic has affected this city.

Investors will also get a chance to speak with our property management team to get a thorough understanding of how these homes are maintained and what our teams do to keep them occupied.

Investment Tour Information
Houston Manufactured Homes Tour
January 19th – 21st, 2021
(8-12%+ Cap Rate) Opportunities

So join us, and let us show you why we are so passionate about these homes and the city of Houston. To sign up, click on the link below, or for more information feel free to email us at [email protected], or call us at 626.551.4326. We look forward to seeing you on our tour!

Sincerely,
TFS Properties Team

Realty411’s Silicon Valley Investor Wealth Summit – Network In-Person Again

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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 their 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 on Saturday, FEBRUARY 26TH, from 9 am until 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.


Learn to Start or Grow a Rental Portfolio — We Own Millions in Real Estate and So Can YOU.

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 REAL ESTATE INVESTING SOURCE IN SILICON VALLEY FOR 15 YEARS

This is your chance to learn in-person again in a safe, sanitized, and socially-distanced venue. What can you expect?

  • 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 educators, will be released soon – register to receive updates.*

Realty411 magazine is based in the beautiful 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.

3 Events, 2 Magazines, Plus a Festival of Deals

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You’re invited to our industry events and to explore our Realty411VIP savings’ website.

Event #1 – Virtual Webinar

Use it or Lose it: The Countdown for Year-End Tax Planning Begins…

Where did the year go?

With 2021 coming to an end, are you prepared from a tax strategy standpoint?

It’s no secret that saving taxes accelerates wealth and compresses your time frame towards financial independence. But what are the best strategies to accomplish this? And when should it be implemented?

Tax consultant and Real Estate industry specialist, Tony Watson of Robert Hall & Associates will share the best tax-saving strategies that investors should know.

Some of the topics he’ll discuss are:

  • Why is it important to know my tax situation by the end of the year?
  • What is a W4 review?
  • Top 5 tax write-offs
  • Deductibility of mortgage interest: how much does it really save?
  • Do I have to make estimated tax payments?
  • 401K/IRA vs. self-directed IRA/Solo 401k
  • Understanding President Biden’s wish-list of tax changes

Event #2 – Virtual Weekend Summit

VIRTUAL HOLIDAY REI SUMMIT:
Celebrate and LEARN LIVE with Us

Investors: Let’s Recap Real Estate in 2021 & Get Ready for 2022

Prepare for a Wonderful Weekend of Investor Education, Deal Funding & Joyous Cheer!

Investors, a solid two days of education, deal funding, and extreme motivation awaits on Saturday, December 11th and Sunday, December 12th. Reserve the weekend now, and prepare for a special complementary virtual summit.

Realty411 will again unite the most successful, knowledgeable and savvy investors in the REI (Real Estate Investing) industry to help our readers make educated and informed decisions. We’ll also recap the biggest economic stories of 2021, plus prepare for 2022.

Realty411’s Holiday VIRTUAL Investor Weekend Summit will begin at 9 am PT until 2:30 pm PT. Our virtual event is only half day in consideration of the busy holiday season. Our online event is complimentary to attend. Sorry no replays, this is a LIVE CONFERENCE for dedicated investors of all levels.

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.

Restore or Elevate Your Credit Score + Find Funding Here!

* Additional educators to be announced shortly, thank you.

Thank you in advance for supporting our sponsors.

Event #3 – In-Person Expo in Silicon Valley

Get Your Investing & Tech Game On
Learn REI in San Jose with Experts

Join Us at Realty411’s Silicon Valley Investor Wealth Summit

Guests will discover the benefits of real estate investing, plus learn to expand their existing portfolio. A special focus on technology in REI.

Learn the latest 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 invest or grow their portfolio.

Thank you in advance for supporting our sponsors.

FREE Downloads: Read our latest two magazines filled with fantastic resources

Thank you in advance for supporting our sponsors.

Use it or Lose it: The Countdown for Year-End Tax Planning Begins…

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Welcome! You are invited to join a webinar: Use it or Lose it: The Countdown for Year-End Tax Planning Begins…. After registering, you will receive a confirmation email about joining the webinar.

Where did the year go? With 2021 coming to an end, are you prepared from a tax strategy standpoint? It’s no secret that saving taxes accelerates wealth and compresses your time frame towards financial independence. But what are the best strategies to accomplish this? And when should it be implemented? Tax consultant and Real Estate industry specialist, Tony Watson of Robert Hall & Associates will share the best tax-saving strategies that investors should know. Some of the topics he’ll discuss are:

  • Why is it important to know my tax situation by the end of the year?
  • What is a W4 review?
  • Top 5 tax write-offs
  • Deductibility of mortgage interest: how much does it really save?
  • Do I have to make estimated tax payments?
  • 401K/IRA vs. self-directed IRA/Solo 401k
  • Understanding President Biden’s wish-list of tax changes

Register now!

To learn more about Robert Hall & Associates, visit: www.roberthalltaxes.com

Dec 2, 2021 01:00 PM in Pacific Time (US and Canada)

A Home for Your Money

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Image from Pixabay

By Brent Kesler

Think about this: your wealth has to live somewhere. It must have a home.

Let’s take a trip back to your childhood. Think about your family. Your street. Your yard. Your room. But, mostly, picture your home. Undoubtedly, we all went to school somewhere, had friends around the neighborhood, and maybe spent time at the library or playground. To have a full-life experience, you had to leave your place of residence almost every single day. But, when the sun set, you hopefully had a familiar place to call home.

Now, think about your money. Since money is just a means of exchange for stuff that you need to enjoy your life, you keep it somewhere safe to trade for products and services you enjoy, right? Where does your money live? Let’s compare the three places that most of the money around the world calls “home.”

Image from Pixabay

Pocket – Many people use their pocket, their wallet, or a jar for their money. I dare say that most of humanity keeps their cash or coins somewhere close to them physically, where they can keep an eye on it, and quickly exchange it for life’s goods. Even in America, in the 21st century, this is a common practice. In this case, their money flows to others so quickly, that there is no chance to save or invest any of the wealth. Would you ever picture the wealthy hiding their money under their bed or in a safe in the closet?

Image from Pixabay

House – Millions of people in the Western world keep much of their wealth in the actual possessions they buy. You’ve probably heard time and again about middle America “investing” in their home and the equity they try to accumulate. The average family’s most expensive purchases are the houses that they live in, or the cars that they drive, etc. We are all into creature comforts, and so we do need to physically reside somewhere. For generations, Americans have been taught to invest in their home because of the “evils” of renting, and the near “guaranteed” growth in value of their house over time.

Image from Pixabay

Conventional Bank – Most American families keep all their liquid cash assets in a conventional bank. At The Money Multiplier, we educate average people about how profitable the banking business is, and how much the Wells, TD’s, and “B of A” big boys are profiting from the money that we all leave there every day. Banking is a massively profitable operation and banks are making anywhere from 400%-1300% on any cash they have deposited into their coffers according to bauerfinancial.com.

Now, where do you WANT your money to live?

After teaching families about the wealth that is being created every single day, month, quarter, and year at conventional banks, The Money Multiplier Mentors will open eyes of our members to the advantages of taking control of the banking function in their own lives. What if YOU owned, controlled, and even profited from the banking function in your life? Well, you can, and we are helping folks accomplish that every day, around the clock. When your money has its home in the The Money Multiplier Method system, no matter where you send or spend your money (debt, monthly expenses, or even investments) your money always have a safe place to return “home,” have guaranteed growth, create tax minimization, be recaptured when you spend it, and leave a legacy when you’re gone! Around here, we are having our cake, and eating it over and over again!

Remember, The Three Rules:

1.) Pay Yourself First

2.) Pay Yourself with Interest

3.) Recycle and Recapture your Money

www.themoneymultiplier.com

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

Realty411’s Holiday VIRTUAL Investor Weekend Summit – RSVP Now

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Prepare for a Wonderful Weekend of Investor Education, Motivation & Good Cheer!

Readers are invited to a virtual weekend of solid education and extreme motivation on Saturday, December 11th and Sunday, December 12th. During this special online event, investors will also have access to capital for their real estate transactions and have all their questions answered.

Reserve the weekend now, CLICK HERE, and prepare for a special complimentary virtual summit.

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

This special Holiday VIRTUAL Investor Weekend Summit will begin at 9 am PT until 2:30 pm PT. Our virtual event is only half day this time in consideration of the busy holiday season.

Joining us on this special conference to help guide our readers will be top industry experts ready to spill their trade secrets of investing success.

Get educated, motivated and prepare for an amazing 2022 and beyond.

Please note: Recordings will NOT be made available later, this is a LIVE CONFERENCE for dedicated investors of all levels.

Normally, virtual events of this caliber are hundreds of dollars to attend (REALLY), 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.

TO RSVP – CLICK HERE

With nearly 15 years experience in hosting in-person and virtual real estate industry events, in 12 states so far, our guests can rest assured that only the best companies and professionals in the industry are invited.

WHAT TO EXPECT: Learn Strategies for Rehabbing – Discover Hot Markets for Buy-and-Hold Investors – Hear About Our Biggest Mistakes & How to Avoid Them – No Fairy Tales – Honest, Real & Raw – Join Us

Learn more and RSVP for Realty411’s Holiday VIRTUAL Investor Weekend Summit here:

https://us02web.zoom.us/webinar/register/WN_JBfXNeQATKOCXGqKhDCc6A

TO RSVP – CLICK HERE

*This post will be updated with additional details. Please check back for more information.

Supercharge Your Real Estate Investments with Self-Directed IRAs

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Image from Pixabay

By Alex Sylvia

When most people hear the term Individual Retirement Account, or IRA, thoughts of mutual funds, bonds, and ticker symbols typically flood the imagination. Contrary to popular belief, those types of investments are not the only assets that can experience the tax benefits of an IRA.

Whether you have a Traditional IRA (investments grow tax-deferred) or a Roth IRA (investments grow entirely tax-free), both can be invested into a nearly unlimited variety of assets, including real estate.

Conventional IRA providers, such as Fidelity or Charles Schwab, certainly have their place in the Individual Retirement Account market. No one here is arguing that stocks, bonds, and mutual funds don’t have their place in a retirement portfolio. To the inexperienced investor, having a portfolio managed by an advisor may be the risk-averse avenue they should take.

Frankly, we’re not inexperienced investors. We are, oftentimes, experts in our field and [up until this point] we just didn’t realize that our retirement funds could be invested in assets that we already know and with strategies we’ve already mastered.

To invest in real estate using an IRA, a Self-Directed IRA is needed. A NuView SDIRA is no different than an IRA offered by the Fidelitys and Charles Schwabs of the world (in terms of the rules governing them), but where the difference lies is in the custodian of the account. Those previously mentioned custodians have their own investments that they are trying to sell the investor to make commissions, but an SDIRA custodian lets their investors choose their own investments.

Whether it’s fix-and-flips, rental properties, real estate options, or passively investing through secured promissory notes, each of these types of real estate investments can be supercharged with a NuView Self-Directed IRA. Imagine NOT having to pay capital gains tax on your investment returns. Imagine being able to RE-DEPLOY that capital towards your next investment opportunity. Imagine the power of compounding your gains WITHOUT having to pay Uncle Sam each year.

The year-over-year returns can very likely eclipse what you could expect with the same deal outside of a tax-advantaged IRA.

You might be thinking that a 1031 Exchange can get rid of capital gains tax as well, but frankly, that is incorrect.

Yes, a 1031 Exchange can defer capital gains tax and may put you in a position to only pay long-term capital gains tax rather than short-term, but what if I told you that there is a way to completely ELIMINATE capital gains tax altogether?

No 45-day rule, no 180-day rule, no “like-kind” provisions, and most importantly, no day of reckoning where you’ll still have to cut a check to Uncle Sam, paying capital gains tax and ultimately suffocating your growth potential.

Image from Pixabay

Keep in mind that the investor is now the IRA entity, not the person themselves. All deposits, closing costs, and expenses are paid from the Self-Directed IRA. Similarly, all revenue and appreciation flow into the Self-Directed IRA.

Since money must flow to and from the NuView SDIRA, it is critical that the account be established prior to finding the investment property. To refrain from making any “prohibited transactions” – such as personally putting money down for a 100% IRA-owned property – it is required that any deposits put down on an investment property come from the SDIRA. Making a prohibited transaction typically causes a taxable event, penalty, and possible distribution of your entire IRA (see IRS Code 4975 for more details).

To avoid this mistake, establish your NuView SDIRA before you find your investment property, and at least have it funded with enough money for a deposit. Once the property is under contract, you can begin the transfer or rollover process to move the rest of the needed funds into your account.

While this strategy of buying investment properties in a retirement account does restrict you from taking personal payment from your investment growth, you could still consider making short-term investments personally, and putting your long-term investments in a tax-advantaged vehicle like a Self-Directed IRA.

Keep in mind, however, that if you make your real estate investments in a NuView Self-Directed Roth IRA, your investment earnings and any interest gained needs to remain in the account until the age of 59.5, but you can always personally withdraw your after-tax contributions at any time, tax and penalty free. Some circles liken the Roth IRA to a “savings account on steroids” because of this feature.

But what can be accomplished with a $6,000 contribution limit per year ($7,000 if you’re over the age of 50)? The answer is – quite a lot. If you’re a seasoned real estate investor with experience using leverage, real estate options, or buying debt-leveraged property, you may be able to accomplish a lot with those low contribution limits.

However, if you happen to be self-employed (which many real estate investors are), you qualify for a handful of employer plans that have much higher contribution limits but are only available if you have self-employed earned income.

Some examples of employer plans would be a SEP IRA or Solo 401k (soloQRP), each with a maximum contribution limit of $58,000, or a SIMPLE IRA with a maximum contribution of $13,000.

If you are not self-employed and wouldn’t qualify for these plans, you also have tools at your disposal to get involved with SDIRA real estate investments.

Image from Pixabay

One option would be partnering. This could be partnering with other retirement accounts you have or with a family member’s or friend’s IRA. Another option would be getting an IRA loan, also called a “non-recourse” loan. Either one of these options could provide you with the buying power you need to leave the stock market behind and invest in tangible cash-flowing assets.

Now, to the real estate investor or syndicator who’s just in the market for other people’s money to fund their personal real estate deals, IRAs are one of the largest buckets of money available to source capital from. Since it is well within the bounds of IRS rules and regulations, IRA funds can be loaned to other individuals (such as real estate investors) or entities (such as syndications).

On that note, if you are an investor who wants to get involved in real estate without doing the heavy lifting, lending your IRA funds to a real estate investor or syndication may be the route for you.

At the end of the day, if you or someone you know is unhappy with their stocks, bonds, or mutual funds, be aware that the capital can be redeployed towards a TANGIBLE cash-flowing asset.

Investing outside of the stock market can help you or others reach the pinnacle of true diversification, and what better way to do so than taking a skill set you already have and applying it in a tax-sheltered environment like a NuView SDIRA?

Fund That Flip Raises $20M Series B to Expand Offering for Local Real Estate Entrepreneurs

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Images from Pixabay

Special News Submission

Rapidly-growing fintech company’s award-winning end-to-end investment platform empowers real estate entrepreneurs to create wealth and value in their communities

Fund That Flip, the New York City- and Cleveland, OH-based real estate-focused fintech platform, recently announced the first close of its $20 million Series B funding round. The financing was led by GPO Fund of New York, with participation from MassMutual Ventures and Tribeca Early Stage Partners. More than 50 Fund That Flip clients also participated in the capital raise via an AngelList syndicate led by proptech investor, Jonathan Wasserstrum.

Earlier investors included Edison Partners and SoundBoard Venture Fund. The investment will help further the expansion of the firm’s proprietary technology platform that provides investors access to scalable capital and passive investment opportunities. The raise will also accelerate the company’s national expansion, development of technological innovations for an underserved industry, and exploration of global opportunities.

“Real estate investors play an integral part of the economy in building homes, creating jobs, and growing businesses and communities,” said Matt Rodak, founder and CEO of Fund That Flip.

Matt Rodak, Fund That Flip

“Since our inception, we have been dedicated to solving the problem so many entrepreneurs face: access to capital and technology to grow their businesses. This round of funding accelerates our mission to deliver technology-first solutions that create even more value for the local entrepreneurs who are themselves creating value in their own communities.”

With an aging housing stock and 72 million millennials seeking to transition from apartment living to single-family homes, Fund That Flip is uniquely positioned to expand its technology and track record of enabling local real estate entrepreneurs to scale their businesses with reliable access to financial services and technology. The company plans to continue to broaden its platform into an end-to-end real estate investment operating system designed to support the information and capital needs of the local real estate entrepreneur.

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“With this raise, we plan to create even more innovative solutions for real estate entrepreneurs, bring them additional value through optimizing the real estate investing ecosystem with data and technology, and continue to provide unparalleled customer service to help real estate professionals drive their businesses forward. We’re thrilled to partner with GPO Fund because they have a proven model of helping companies disrupt analog markets through the creation of data-driven solutions and platforms,” Rodak said.

As part of the round, Jeff Stewart, partner and managing director at GPO Fund, will join the Fund That Flip board of directors. “I’m really excited by the way Fund That Flip is leveraging data and technology to empower a huge and underserved market. While they have grown tremendously fast over the past twelve months, we believe the opportunity in front of them is enormous,” said Stewart. “Fintech companies are transforming entire industries through vertically integrated technology solutions, and the team at Fund That Flip has an impressive track record of leading that innovation within the real estate space.”

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Fund That Flip is one of the fastest-growing private companies in the U.S., on pace to grow its revenue by 300% year-over-year and doubling its customer base since 2020. Their technology platform has facilitated over $1 billion in real estate investments, with 99.1% return of principal, and has achieved profitability since the close of their Series A in August 2019.

Raleigh Real Estate Developer Sentenced to Decade in Prison for Real Estate Ponzi Scheme and Firearm Possession Charges

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By Realty411 Editorial Staff

This week, a real estate investor in Raleigh, North Carolina, was sentenced to ten years in prison on charges of wire fraud, in violation of Title 18, United States Code, Section 1343, and Possession of a Firearm by a Felon, in violation of Title 18, United States Code, Section 922(g). 

According to a breaking-news press release from the Department of Justice, Joshua Matthew Houchins, 36, (the defendant) was also ordered to serve three years of supervised release and to pay restitution to victims in the total amount of $1,771,382.25.

Court documents and arguments made in court revealed that Houchins, the owner of various Raleigh real-estate development companies, carried out a Ponzi scheme upon numerous other local investors.  Additional charges were added for Houchins, who also possessed a rifle and several rounds of ammunition, after having been already convicted of a felony.

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Between 2014 and 2018, Houchins owned and operated Rossshire Development LLC, Greenstone Ventures LLC, and Modern South Development LLC, and used these entities to carry out a fraud upon his real estate development investors, according to the superseding indictment.

The court found that Houchins solicited investment monies by telling victims that their money would be “put to work” on a specific property, and further represented that the investments would be secured by deeds of trust filed with the county register of deeds.

Instead, not all of the investor funds were used on the property for which the investor was solicited. According to court documents, Houchins instead regularly used investor funds on other properties, or on personal expenses. 

Without the investors knowing so, the promissory notes were not secured by a deed of trust as they were promised.  To make matters even more convoluted, in some cases, Houchins did not even own the property that was part of the investment, and, as such, could not truthfully grant a deed of trust to the investor. 

The indictment alleges that after Houchins diverted investor money away from the property on which the funds were supposed to be spent, plus he failed to develop and sell the properties, as he represented he would.  Instead, he defaulted on the notes by failing to pay investors their promised returns. 

The investors had no recourse, as they were unable to foreclose upon the investment properties because Houchins failed to secure the promissory notes with a filed deed of trust, which resulting in losses to investors. 

Houchins specifically pled guilty to Count Nine, which alleged one instance of the above-described fraud.  As a part of the plea, Houchins agreed to make restitution to all victims for losses arising from the scheme and related schemes.

G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the sentencing announcement this week. The Federal Bureau of Investigation and the North Carolina Secretary of State investigated the case.  The Wake County Sheriff’s Office, Apex Police Department, and Sanford Police Department also provided assistance.  Assistant U.S. Attorney William M. Gilmore served as the prosecutor.

Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-245-1D(2).

THE SAFETY LESSONS IN THIS STORY:

Always perform extensive background checks on all individuals who solicit funds from you for real estate investments. A simple background search would have raised flags immediately due to the defendant’s previous criminal record. Secondly, always confirm with county records that your investments are indeed secured by a deed of trust (aka “trust deed”) to enable recourse in case of a default or fraud.