How Deferment of Mortgage Payments May Affect Borrowers in the Long Run

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By Edward Brown

When Congress passed Section 4021 of the CARES Act in response to the effects of COVID-19, their intent was to help borrowers who were having problems making their mortgage payments. Little did Congress realize that they were potentially setting up borrowers for trouble in the future when it comes to credit worthiness as assessed by the lending community.

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According to Mark Hanf, president of Pacific Private Money, “Section 4021 of the CARES Act contained a regulation that loan servicers “shall report the credit obligation or account for those participating in forbearance as current”. In other words, those participating in a forbearance program should not see their credit scores drop. However, there is a loophole that allows lenders to discover whether or not a borrower is actually making payments. It is the “comments” section of a credit report. The CARES Act does not mention the comments section of credit reports, and that’s where forbearance notations are going.” What borrowers are not being told is that any reference in a credit report to forbearance can be a Scarlet Letter for an applicant seeking a new mortgage, according to Kathleen Howley in an article she wrote in early May 2020.

According to Hanf, within a week of Howley’s article, his company received a loan request from a home buyer who was denied credit from a major bank for just this very situation. Although the bank sees the existing mortgage as “current” the forbearance has let the world know via the comment section that this borrower has requested a deferment. The major bank involved would most likely not deny the loan on its face due to the deferment, as this would violate the law; however, banks are notorious for coming up with a myriad of reasons for denying a loan and still stay within the guidelines set out for them.

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Conventional lenders desire to have plain vanilla borrowers who pay back loans in a timely manner. When a borrower changes terms of the loan by requesting principal forgiveness or other aspects of the loan, the lenders generally do not usually extend credit again to these borrowers and can negatively affect the borrower’s ability to borrow again from unrelated lenders. Such is the case back during the Great Recession wherein some borrowers took advantage of the economic climate by asking their lender to reduce the principal of their loan [total forgiveness rather than just a deferment]. The borrowers may have gotten a reprieve, but the long-term effects may have been more drastic. Similarly, to when a borrower files bankruptcy. The borrower may get out of paying creditors, but their ability to borrow in the future is usually severely hampered.

In one case, back in 2009, during the heart of the Great Recession, one banker tells a story of how a wealthy borrower first asked for a principal loan reduction of $500,000 because his collateralized real estate had decreased and his request was granted. But, when this borrower was faced with the prospects of having this reduction reported on his credit report or the fact that he would have to inform any new lender that he requested a principal reduction [as this question is usually on bank applications], he voluntarily requested that the $500,000 abatement be reinstated. He decided his ability to borrow in the future was worth more than the $500,000 principal reduction.

Borrowers will have to decide if requesting deferments is worth the risk of potential future lending restrictions based upon the lender desire to lend to borrowers who choose to defer mortgage payments when the opportunity arises. Whoever said, “there’s no free lunch” must have been talking about these very situations.

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Edward Brown

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

Women Who Behave Never Get Rich!!

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By Kathy Kennebrook (The Marketing Magic Lady)

I am often asked by women at events I speak at whether or not I think a woman can make a go of the real estate investing business on their own. My personal answer to this question is always a resounding-YES!

Actually, women have a distinct advantage over men in the real estate investing business. Sorry guys, it’s the truth! You see women are generally much more comfortable working with other women. That’s a given. So this makes the whole process go a lot more smoothly. And Men really like working with Women because it kind of levels the playing field. Women are seen as easier to work with. So Women end up doing really well in the real estate investing business even if they are working on their own.

man-and-woman-smiling-inside-building-1367269 smallMen are more comfortable working with a female investor for a lot of reasons. The first and most important is that there is no ego or testosterone coming into play in the negotiation process so generally a man and a woman working together are going to come up with a win-win solution much more quickly and easily than a man working with a man. It’s not like one of the guys “has to win”

Women can definitely be very successful in the real estate investing business working on their own. I am living proof of this fact. Even though my husband and I work together in the business, I am usually the one creating the deals, especially when working with senior homeowners. Once again; they just seem to be more comfortable working with a woman. I don’t mean to sound chauvinistic here; it just seems to work out that way. There seems to be a greater trust when working with a woman investor.

It also seems to go over better when I am the one asking for the deed to a property I want to buy subject to the existing mortgage. The whole scenario just goes better when I am the one doing the asking whether working with male sellers, female sellers or couples. I just think women are seen as more nurturing, empathetic and easier to work with. So yes, ladies; you can definitely have a successful real estate investing business all by yourself!

positive-businesswoman-doing-paperwork-in-office-3756678 smallI could share several examples of deals I have done myself, even very recently to drive this point home. I recently did a deal with a lady who had just turned 40 and decided to sell her home so she could use the proceeds to travel the country before she was too old to do so. She had been contacted by Real Estate Investors who were men and she wouldn’t sell her home to them. Then she saw our ad in a shopper guide and called me. We met and she agreed to sell me her house. She was just much more comfortable working with another woman, and being a single woman living alone, she was nervous about letting a man into her home that she didn’t know.

Let me share another deal I did where a couple was being transferred out of state for business and needed to sell their home quickly. They had had another investor come out to see them before I showed up. He showed up in a suit and tie and they felt he was just too “slick” for them to be comfortable working with, so when I showed up in nice slacks and a blouse, empathized with their situation and showed them how I could help them solve their problem, they sold their home to me. I made a hefty profit on this deal! I also brought references with me so they could make sure I was really who I said I was and that I could really purchase their home.

I do have some advice for women working on their own based on my own experience. Here is some of the best advice I can give you. Ladies, if you are going to a property and you haven’t been there before and you don’t know the sellers, carry a cell phone with you and make sure someone knows where you are going to be. This is just common sense information to protect you. In my case, most of the time, the negotiations have been done on the phone before I ever go see any property.

woman-in-white-blazer-holding-tablet-computer-789822 smallIf you are going to a seller’s home and there is a couple involved in the deal, make sure they are both going to be home. You need both of their signatures on paperwork anyway.

If you are going to a vacant ugly house I suggest taking someone else with you or making sure someone knows where you are, just in case. Just remember to use a little bit of common sense and caution in your dealings and you will be very successful in this business.

For more information on Kathy Kennebrook check out my website at www.marketingmagiclady.com While you are there be sure and sign up for my free monthly newsletter!

The Problem With an IBC Policy

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By Gabby Darroch

“What’s the problem with IBC?”

If you’re like many people who’ve heard about The Money Multiplier Method and IBC (especially for the first time) then you’ve probably had this thought cross your mind a time or two.

We get it. You want to know all the bad things that accompany all the stellar benefits of having and using your banking policy.

upset-2681502_1280Since the “perfect system” does not exist, this concept presents some challenges of it’s own. And we are prepared to discuss them with you, right here, right now. Why? Because, if you know anything about The Money Multiplier, you know we LOVE transparency. Just not when it comes to walls… or clothes.

So here it goes.

  1. Policyowners must commit to a long-term plan.
  2. Applying the recommended guidelines can be challenging… on your own.
  3. Most people don’t know the first thing about designing a plan that fits their specific financial needs.
  4. Your own mind may be your worst enemy.

Now, the good news is that we have solutions to each of these “obstacles.” So stop reading here if you hate having solutions to your problems.

The problem: Policyowners must commit to a long-term plan.
The solution: If you have commitment issues when it comes to your money, we get it! But just remember, your money isn’t locked up for years, unable to be even touched without some kind of harsh fees or penalties. This policy is nothing like your 401k, 403(b), annuity, or even a CD. And while in the first few years you don’t get access to 100% of the premium deposits you put into your banking policy, you’ll never have less than 60% of those funds available immediately within 30 days of making your premium deposit. And that’s just for the first year! Every year after, that percentage increases so you’re able to borrow more and more of your premium deposits. (And yes, it won’t be long before you’re able to borrow every single penny you put into your policy and more!)

The problem: Applying the recommended guidelines can be challenging… on your own.
The solution: Did you hear that last part? There is only a challenge if you’re going in alone. But if you’re with The Money Multiplier, we’ve got your back. We check in with you at least twice a year to update your goals. And we also give you a plan of how best to utilize your policy to reach those goals using your banking policy. So when you get a policy, we don’t expect you to know everything. We have a team that does all the hard stuff for you so you can enjoy your life, which is why you started this policy in the first place, right?

hand-1917895_1280The problem: Most people don’t know the first thing about designing a plan that fits their specific financial needs.
The solution: We don’t expect you to know a thing about these policies (although we always provide resources for you to learn from. Knowledge is power!). That’s what we are here for. You don’t need to know anything about policy provisions, riders, or other policy options that you might need. We take care of that part, always keeping your best interests at heart. So rest assured, your policy is completely customized to fit your specific financial needs.

The problem: Your own mind may be your worst enemy.
The solution: These concepts, even though they’ve been around for over 200+ years, are difficult for many to believe in. Not because they don’t work. In fact, there is no other tool out there that works quite as well in reaching your financial goals as the Infinite Banking Concept does. However, so many are taught their whole lives to think the way banks want them to think about their money. But your bank telling you they should control your money is like your (shady) mechanic telling you your car needs repairs it doesn’t actually need. Both are trying to make a profit off of keeping you in the dark about what’s really going on. (Side note: not all mechanics are shady. Some are pretty awesome!) The point? Trust the process that puts you in control of your money, not the one that’s kept you on the financial hamster wheel your whole.

steering-wheel-2209953_1280Our only goal is putting you back in the driver seat. And we’re here to help you overcome whatever obstacles are standing in your way to do so. Because here’s the thing: There’s never going to be a better time than now. We grow older. The bills keep coming. Our health declines (even if slowly). Problems come out of left field and hit you square between the eyes. But you can do this for yourself and your family and work towards the life you want, the life you want for them, and the future you all deserve. Because where there’s a will (and an awesome team of experts who’ve got your back), there’s a way.

As Nelson Nash, the founder of the Infinite Banking Concept, once said, “Someone’s gonna be the banker. And the tragedy is that it should be you, but people don’t realize that.” But now, I hope I’ve helped you to realize that you should be in control. You should be the bank. And we’re here to help.

To learn more about The Money Multiplier or to get started with your own policy, please visit www.TheMoneyMultiplier.com/member-area and watch the presentation that appears on the next page.

When you’re ready to get started on creating your financial legacy or if you have more questions, please email us at [email protected], or give us a call at 386-456-9335, and one of our mentors will be in touch with you.

Rise Up And Take Care Of The Greatest Generation

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By Gene Guarino

Should I help take care of the elderly?

I know some of you have been inspired to take care of the elderly or you enjoy doing exactly that, and I want to encourage you to continue to do that. There is a real need for caregivers of all types and that is a looming crisis out there that you can help with right now. There is the opportunity to help, to engage, to be a part of something big and something important. We’re all aging and people are lasting and living longer than ever. The question is, are you going to be a part of the solution that is going to help society or part of those who complain about it and sit back?

seniors-1505938_1280What if I already have a job?

Some of you right now are thinking that you really do like taking care of people but may be busy at another job. If taking care of the elderly is your passion, that’s what you should do. You see, right now there’s a lot of caregivers that are needed to take care of the elderly population, and that crisis is only getting worse because more people need help for longer, but there are fewer caregivers and family members that are willing to do it or are trained properly to do it. So if you are inspired, and you feel the calling, then I encourage you to do exactly that.

Could I just volunteer at an assisted living home?

senior-4549666_1280You can start by volunteering at a home and see if it’s right for you. Read a book, do a puzzle, play cards, sit and talk, play some music, sing along, whatever it is that you can do to be there and interact. Those care homes can use the extra hand and you don’t need to be the caregiver. If you can just be there providing some company, companionship, or a conversation. That alone would be incredibly helpful to those caregivers, and those seniors need it.

Why is this generation called the silent generation?

One of the saddest things In our society today is that more than half of the people polled feel lonely. I think a lot of that is technology. We look at our phones and all of those things that take us away from talking to each other face to face. There’s a lot of seniors who would just love to have somebody stop by and say hello. It really doesn’t take much. It may not even take a conversation as much as just sitting with them. If you’re sitting in your home watching golf over the weekend, why not go sit with them and watch golf providing companionship and then ask them a question, did you ever play golf? What kind of clubs did you use? Before you know it, you’re going to find out about wooden clubs and how they used to play with just three clubs, and that was it, and they played the whole round with three clubs and 1 ball.

You can do this!

Have those conversations. Take that time. The greatest generation, the silent generation, needs your help and you will truly be a part of the solution by simply being “present”. Volunteering your time is one way. Starting a residential assisted living business with an excellent home with excellent care is another. It’s totally up to you, but you can do both.

You can also subscribe to our iTunes for on the go listening:
https://itunes.apple.com/us/podcast/assisted-living-networks-podcast/id1360517721?mt=2

Gene Guarino
Founder/CEO
Residential Assisted Living Academy™

Gene is the President, CEO & Founder of RALAcademy.com. Gene has over 30 years experience in real estate investing and business. Today, Gene is focused on just one thing… investing in the mega-trend of senior assisted housing. He has trained thousands of investors/entrepreneurs throughout the United States how to invest in and operate residential assisted living homes. For over 25 years he has been educating people on the strategies of successful investing, business and self-employment. He now specializes in helping others take advantage of this mega-trend opportunity.

The Federal Reserve Rolled into the US Treasury and Economic Forecast

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By David Mashian

In March of 2020, the single biggest news event of the decade hardly got any news coverage, and that is the Federal Reserve just got rolled into the US Treasury Department. This happened in the midst of the COVID-19 pandemic, so such massive news got drowned out by Corona Virus news and concerns. Most people don’t know what the Federal Reserve is or was. To put it simply, The Fed was a privately-owned banking cartel owned by foreign and domestic wealthy banking families who controlled the economic system of the United States by controlling its money supply. With this single act, the US government now owns “The Fed” and has the ability to govern its own financial destiny without acquiescing to a third-party entity whose interests are not aligned with WE THE PEOPLE. We, through our elected officials, now control our own money supply. THAT IS HUGE!

usa-1026228_1280This bodes well for our economic recovery as a result of the COVID-19 pandemic that paralyzed the US. President Trump, through the US Treasury, now has full control over spending money to stimulate economy. As a result, it looks that the US is at the start of a golden age.

With this new power, President Trump can stimulate the economy in the following ways:

  • Historically Low Interest Rates – Interest rates will be maintained at zero until 2022 to be able to stimulate the economy through liquidity and cheap money. We will see continued purchases of homes and a boom in the refinancing of single-family residences – keeping more money in people’s pockets instead of interest payments.
  • Easy Lending Standards and Lots of Stimulus Money – The Federal Government has already provided PPP loans, SBA COVID-19 Disaster Loan Assistance, unemployment benefits, and much more to keep people afloat while we work through the aftermath of this pandemic. There will be more to come, and since President Trump controls the Federal Reserve by way of the US Treasury, there are no obstacles.

Economic Forecast: We Had a Pause – Not a Crash

keyboard-393838_1280I believe we will bounce back soon, be it V-shaped or U-shaped recovery. We have a pro-business President who understands that small businesses are the backbone of the country. There will be lots of investment money available to businesses going forward. In fact, the new version of the Federal Reserve is establishing the Main Street Lending Program to support lending to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic.

There are many factors that still hold true despite the Corona Virus lock down, including a strong jobs market and strong stock market.

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  • Strong Jobs Market – People (employers and employees) are eager to start work after being cooped up self-isolating for so long. Similarly, the employers looking to fill positions before the lock down are still looking to fill positions. Also, many of the people who could not work during the pandemic are basically on hold, and will be back at their jobs once the COVID-19 situation clears up. We saw a pretty fast bounce back with the first reopening, and it will things will bounce back again once the coast is clear of COVID-19 in this second wave.
  • Stock Market Strong – The stock market is still strong, and did not suffer a meltdown as a result of the pandemic. Most importantly, people’s retirement funds are secure and confidence in the economy to go back to work is stable. This may largely be a product of unprecedented government and central-bank support, and a lack of compelling alternatives to equities.

Going Forward

MORE JOBS AND ECONOMIC STIMULUS COMING!

  • setting-2473875_1280USMCA Trade Deals Just Took Effect July 1 – The new United States-Mexico-Canada Agreement (USMCA) is a mutually beneficial win for North American workers, farmers, ranchers, and businesses. This will create more balanced, reciprocal trade that supports high-paying jobs for Americans and grows the North American economy.
  • Huge Infrastructure Investments – The Trump administration is preparing an up to $1 trillion infrastructure package focused on transportation projects such as roads and bridges and 5G wireless infrastructure and rural broadband. All infrastructure improvements have the added benefit of creating secondary and tertiary jobs that support the initial infrastructure jobs.
  • Elimination of Payroll Taxes Likely – President Trump is pushing to eliminate payroll taxes. This should boost the economy by putting more money into the pockets of Americans resulting in higher spending for goods and services, speedier repayment of debts, and a faster return to normalcy. This amounts to slightly higher real wages for workers at no higher cost to the employer.

We are in the midst of a recovery, and in the worst-case scenario if we don’t see a recovery, the Federal Reserve can still lower interest rates to negative. Yes, that’s right, negative interest rates. This sounds odd, but many countries around the world, such as Japan, Denmark and Switzerland, currently have negative interest rates. Similarly, right now, the Eurozone, Norway, Sweden, and Bulgaria are at 0% interest rate, with Israel, the United Kingdom, Canada and Australia being near 0%. It is a real possibility.

One thing is clear, we are in the midst of a paradigm shift, with a change of perception of money and how money is used and transferred. The power structures that controlled the economic and political systems have changed and more is to come. The once unimaginable is becoming real, and I see great progress for humanity and the planet as a result.

I hope you have found this newsletter helpful. Please feel free to contact me anytime.

Nationwide Real Estate Lending
Contact me now for more information:
David Mashian
310.903.6907
[email protected]
Visit us at: https://moneymacloans.com/

Back in Black/Airbnb is on the Upswing

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By Michelle Corsetti

At the beginning of the Covid-19 Pandemic, Airbnb occupancy rates dipped significantly as people opted to cancel their travel plans. Also, many counties put into place restrictions stopping Airbnb rentals from operating. Some counties restricted all but first responders and essential workers from renting Airbnb locations.

business-2904770_1280However, as of May 28th, there has been a 17.1% increase in occupancy rates. Overall, Airbnb is still down for the year but is hopeful as some restrictions are lifted. The good news is that places with smaller populations are gradually picking up the pace. People are venturing out to get rid of the lockdown blues.

According to Pittsburgh Action News, most rentals have been within 50 miles of home. Since traveling abroad has been halted to a standstill, people are having mini-vacations close to home.

While some people are optimistic about the increase in bookings and sales, others are opting for a more drastic change. CNN reported that some Airbnb hosts are giving up on their short-term rental properties and are proceeding to sell.

new-home-1530833_1280These hosts report that because of loss of sales and income, they are planning on selling not just their properties, but their furnishings as well.

Other hosts are changing from short-term term rentals to long-term rentals to compensate for the loss.

Only time will tell what the real impact of COVID-19 has on Airbnb and other short term rental platforms. As of now, while slow, things are looking on the upswing.

Holly Lynn is still very busy in business as a short-term rental expert and host. If you need your property rented– short-term or long-term, she can do for you what she does best–make you money!

For more information or booking, contact Holly at [email protected] or 415-317-6071.

U.S. Department of Justice Files Sexual Harassment Lawsuit Against Landlord

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By Stephanie Mojica

The U.S. Department of Justice recently filed a lawsuit against an Iowa landlord alleging that he sexually harassed and committed acts of retaliation against a female tenant.

The defendants in the lawsuit are Juan Goitia and 908 Bridge Cooperative in Davenport, Iowa, according to a press release from the Department of Justice. The reported incidents occurred between March and August 2018 and are blatant violations of the Fair Housing Act, according to the Department of Justice.

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Goitia, an owner and manager of residential properties, allegedly touched a female tenant’s body on multiple occasions without her consent and made repeated and unwanted sexual remarks, according to the Department of Justice. When the woman filed a fair housing complaint with the Davenport Commission on Civil Rights (DCRC) and the U.S. Department of Housing and Urban Development (HUD), he engaged in acts of retaliation against her, according to the Department of Justice. The press release did not elaborate upon what those alleged acts of retaliation were.

“No woman should have to endure sexual harassment to keep her home,” Assistant Attorney General Eric Dreiband of the Civil Rights Division said in the press release. “The Fair Housing Act protects tenants from sexual harassment and retaliation by their landlords, and the Justice Department will vigorously pursue those who engage in such reprehensible and illegal conduct.”

After the DCRC and HUD investigated the woman’s fair housing complaint, they forwarded it to the Department of Justice for further action. The lawsuit filed on June 29th calls for the woman to be compensated financially. Also, the Department of Justice asked for a court order to be issued to prevent further discrimination against the woman.

“Women have a hard enough time finding a decent affordable place to live without having to be subjected to unwanted sexual advances,” Assistant Secretary Anna Maria Farias of HUD’s Fair Housing and Equal Opportunity Office said in the press release. “HUD applauds the action the Justice Department is taking in this matter and remains committed to working together to protect the housing rights of women when those rights are violated.”

Vacation Rental Investment Opportunities

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By Rick Tobin

In 2019, the travel and tourism sector represented 10.4% of the global GDP (Gross Domestic Product), including vacation rental properties. Over the past 12 years back when the best known vacation rental company named Airbnb was formed in San Francisco, each consecutive year for vacation rentals had record growth. However, the current 2020 year has experienced some significant economic challenges related to the global pandemic designation that slowed down travel tremendously.

airbnb-3399753_1280Airbnb is the best known vacation rental company in the world because it’s the largest. However, there are many other popular vacation space rental brands under the names of HomeAway, VRBO, Booking Holdings, Trivago, Booking.com, Homestay, and TripAdvisor.

Vacation rental ownership can become either a part-time or full-time career for property owners if they are consistent with their marketing efforts, treat their guests fairly, and have affordable monthly mortgage payments and maintenance expenses. With today’s record low mortgage rates, many property owners may be able to refinance and reduce their mortgage rate by 2% or 3% while increasing their net cash flow by $500 or $600 per month, depending upon their loan amount.

Let’s take a look below at some of the latest vacation rental data trends:

Vacation Rental Properties, Income, & User Numbers

  • Worldwide, an estimated $57.669 billion (USD) was generated in 2019.
  • The projected number of vacation rental users was over 297 million.
  • According to the National Association of Realtors (NAR), 30% of vacation rental or second-home property homeowners also leased them as short-term rentals in 2018.
  • The NAR reported that 32% of investment homeowners were likely to lease them as short-term rentals.
  • Of the nine million second homes in the US, approximately 44% were professionally managed and upwards of 25% to 35% were rented out, per Hostfully.
  • There are more than 23,000 vacation rental companies across the nation.
  • As per VRM Intel, 45% of investment property buyers purchased their property with the intent to generate some rental income instead of just “fixing and flipping” or holding long-term for price appreciation.
  • It’s projected by Statista that the number of vacation rental users may surpass 57 million by 2023.
  • The average revenue per user (ARPU) reached $438.49, according to Statista.
  • Vacation rental income comprises about 24% of the average owner’s total overall annual income, per VRMA.
  • VRBO estimates that 29% of vacation properties are owned by more than one person.
  • Approximately 63% of investors and 52% of vacation property buyers purchased a detached single-family home with a median size of 1,500 square feet, according to VRM Intel.

Airbnb Statistics

  • businessman-2682712_1280In the US, there are more than 660,000 host properties.
  • Since the formation of Airbnb in 2008, there have been over 500 million Airbnb stays.
  • There are more than seven million listings in over 220 countries and regions.
  • There are 150 million users worldwide.
  • There were over 100,000 host cities worldwide as of January 2020.
  • Each night, there are over 2 million people staying at Airbnb rentals worldwide.
  • On average, six guests check into an Airbnb every single second.

Top 10 Profitable Airbnb Regions

Surprisingly, many of the most profitable Airbnb areas were located outside of a major tourist hub, crowded metropolitan region like in New York City, or in scenic coastal regions, according to an analysis by the investment property exchange company IPX 1031. This is partly because the host’s property maintenance and mortgage costs are generally more reasonable than in pricier metropolitan regions.

In 2019, the Top 10 cities for highest profit margins for property hosts included:

#1 – Moreno Valley, California: $33,720 annual profit
#2 – Virginia Beach, Virginia: $32,208 annual profit
#3 – Pasadena, Texas: $29,988 annual profit
#4 – Garden Grove, California: $29,772 annual profit
#5 – Fremont, California: $26,700 annual profit
#6 – Grand Prairie, Texas: $24,432 annual profit
#7 – Columbus, Georgia: $23,820 annual profit
#8 – Oxnard, California: $23,256 annual profit
#9 – Orlando, Florida: $22,020 annual profit
#10 – Shreveport, Louisiana: $19,992 annual profit

Top Airbnb Destinations for Summer

beach-1838501_1280In the summer of 2019, the top Airbnb destinations in the entire nation for the peak travel season were ranked as follows:

#1 – Los Angeles
#2 – San Diego
#3 – Phoenix
#4 – San Francisco
#5 – New York City

In San Diego, Airbnb reported that there were 345,000 guests that generated upwards of $79 million in revenue for the property hosts. For the smaller neighborhood regions in San Diego County, the most popular areas for Airbnb travelers included:

#1 – Pacific Beach
#2 – Mission Beach
#3 – East Village
#4 – North Park
#5 – Ocean Beach

The Global Pandemic’s Effect on Tourism and Investments

In February and March 2020, the Dow Jones stock index experienced eight of the 10 worst all-time trading days in history due to investor fears about the coronavirus pandemic. Between February 12th when the Dow peaked at 29,551.42 on February 12th and March 23rd when the Dow plummeted to a low of 18,213.65, the Dow lost 38% of its overall percentage value in just over five weeks. However, stock prices have been moving much higher through the end of June as the Dow Jones had the best quarter since 1987 and the S&P 500 index had the most positive quarter in 22 years.

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Unfortunately, the travel and tourism industry has been hit hard during the first half of 2020 due to so many hotel, motel, theme park, and transportation restrictions or complete shutdowns. For many vacation rental owners, they have seen their income fall to lower levels than in previous years. If so, the loss of rental income has inspired some vacation property owners to think about either selling or refinancing their property to generate much needed cash or to hopefully improve their monthly net cash flow.

Surprisingly, real estate continued to have much more positive news than perhaps any other investment sector during the 1st half of 2020. Specifically, the fact that 30-year mortgage rates reached all-time record lows in the month of June was probably the primary reason why as some rates hovered somewhere in the mid-2% rate range. By comparison, the 30-year fixed mortgage rate hit a whopping 18.63% in October 1981.

profits-1953616_1280Other positive first half of 2020 trends for real estate and mortgages included:

  • Mortgage application numbers reached 11 year highs.
  • Home purchase applications also rose to 11 year highs while home inventory remains low.
  • Suburban home market regions are expected to hit record boom sales highs because so many people want out of crowded metropolitan regions while realizing that they can work from home.
  • US home prices rose for the 9th consecutive month in April, per Case-Shiller.
  • Prices of the most affordable third of US homes increased 5.5% during the 2nd quarter, per Redfin.

In the second half of 2020 and beyond, more people will likely be very eager to start traveling again after being restricted from travel for much of 2020. As a result, the revenue streams for vacation rental hosts may continue back towards historic highs if the annual positive data trends continue like they have over the past 12 years.

 

Rick-Tobin-Professional-Pic-sharperRick 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.

We Snagged The Nation’s TOP Lease Option Educator

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Dear Serious Real Estate Investor;

As the market changes from a SELLERS’ market to a BUYERS’ market, there are a few strategies that are going to CRUSH it.

The easiest and fastest one to implement?

LEASE OPTIONS.

This is where John Jackson comes in.

In case you are not familiar with who John Jackson is, John is considered the nation’s TOP educator when it comes to the subject of Lease Options.

John Jackson 2

So why am I introducing you to John?

Because the market is CHANGING and it is quickly becoming a BUYER’S market, and what is the BEST and most SIMPLE strategy in a buyer’s market?

LEASE OPTIONS.

You see, the post pandemic market is about to make a dramatic shift over the next several months and possibly years.

Will it be as bad as 2008?

I don’t know for certain. Nobody does.

But as things unfold there will be a LOT of uncertainty and sellers needing help. Because of this I wanted to introduce you to John who is a good friend of mine and is THE go-to guy in uncertain or down markets.

You’ve probably heard me mention John before as we’ve known each other a number of years.

John is often called the “King of Lease Options” and with good reason. He has specialized in lease options since 2003, and has even taught a number of the nation’s top educators.

Let’s just say this. He is THE guy that even the top educators call when they have a question or often times send their students to.

I guess you could almost call him the “Yoda of Lease Options”!

You see, the real estate world is just STARTING to see challenges and in the coming months it will be progressively harder and harder for sellers to sell, and lease options are the BEST strategy in a market like this.

Lease options THRIVE in a down market and the market we are going to see could be similar to 2008, and there is no greater educator on lease options than John.

Sellers will be more and more desperate for a Plan B and lease options are the PERFECT Plan B, BUT, you have to know how to structure them properly for a Win-Win-Win transaction.

Now, because John Jackson is extremely sought after right now given the market, and this is such TIME SENSITIVE training, you will NOT want to miss this virtual event.

Let me be VERY clear on a few things so that you understand EXACTLY how important this training is:

  • John has offered to do a LIVE virtual training.
    This is LIVE, not pre-recorded.
  • Because of this, John will only be doing ONE training,
    this Thursday July 2nd at 3 PM CENTRAL
  • He will be taking questions on the call.
  • He is THE Texas lease options expert as well,
    so if you are from Texas, he is your guy.
  • The platform only holds 100 REGISTRANTS! PERIOD!
  • Using the lease option strategies he will be teaching, you can
    easily make $10,000 on houses with no equity WHILE helping sellers.
  • Nobody else offers this training but John Jackson
  • The platform only holds 100 REGISTRANTS. Period.

I will be e-mailing you a number of e-mails with the opportunity to register over the next few days, but let’s be honest here.

John is one of the most sought after educators in real estate right now, and what he will be sharing on this training is VITAL to help sellers and buyers in the coming post-pandemic market.

So, if you wait to register, you risk NOT getting a spot at the table. And in case you are wondering, this e-mail just went out to over 72,000 people. Yes, that’s right, 72,000 people, but only 100 will even have a chance.

Are you going to be one of them?

When: Thursday July 2nd, 3:00 PM CENTRAL.

REGISTER NOW

To your success,
Linda Pliagas
Realty411 & REI Wealth Magazines

How to 10x your cash buyers Holiday Webinar with an Explosive Offer!!

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Learn how REIBLADE’s innovative real estate investor marketing tools can turn your data and doors into greater profit!

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Thursday July 2, 11am Pacific / 2pm Eastern

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Why REIBLADE.com?

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REIBLADE solves many headaches real estate investors face and provides a number of unique tools that can dramatically accelerate business growth.

Emily from Arizona is looking forward to doing more deals with the time she will save using REIBLADE.com

Attend the webinar and find out how you can save 70% on a lifetime license of REIBLADE.com

What we will talk about:

Sponsor Dashboard

Analyze and present your assets to investors in ways never available to real estate investors including instant performance snapshots, asset groupings, powerful

Investor Portal

Provide transparency and clear communication with your investors including document storage, push button quarterly reports, instant information

Raise Capital

CRM, tasks, instant prospectus, public and private marketplaces and pipeline marketing are just the beginning for attracting equity, new investors with the ability to sell your assets

Meet the team!

Seti Gershberg

Seti Gershberg
Real Estate Investor
Co President
Scottsdale REI, LLC
Inventor of REIBLADE

David Hirschfeld

David Hirschfeld
President – Tekyz
Developer

Jay Tenenbaum

Jay Tenenbaum
Real Estate Investor
Co President
Scottsdale REI, LLC
National Speaker

RSVP NOW: https://reiblade.mykajabi.com/rei-blade-webinar-page-070220?cid=ea307316-77fd-4e30-b25e-d85036ab5d76