Embrace the Mobility of Your Investor Lifestyle

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By Linda Liberatore

As you build your real estate investment portfolio, you dream of ending your 9 to 5 corporate job and the day your freedom begins. No need to go into the office. Now you can spend your days finding properties and evaluating progress on rehabs while managing your current assets.

To operate as an investor having an office space is not necessary and it’s a great way to save capital. Let’s be sure that while you have saved on the cost of office space, you are able to keep great records in your new mobile workspace. There is a multitude of ways to stay organized while on the road. You might want to consider adding these mobile apps as you embrace your new virtual office. First things first, you’ll want to be sure your notes are logged from your mobile device. Some of our clients enjoy the speech-to-text features and exclusively use the Google suite of apps to manage their documents. This works perfect for sharing documents with a future virtual assistant.

The Zillow Rental Manager app allows you to post an ad on several sites. With Zillow Rental Manager, you can have your ad on Zillow, Trulia, HotPads and other top rental sites. And unlike some real estate apps, Zillow Rental Manager is free. Simply enter details and insert a few photos. Applicants from Zillow and Trulia include pet information, credit score and income. Remember, finding the most qualified candidate quickly is the goal.

Homestyler is a wonderful app that helps you envision your next rehab. Take a picture of the current floor plan and let Homestyler show you how it will look with tile or hardwood. Take the dream-work out for contractors and leads. Let them know how furniture placement can work. Check out lighting changes and more. Homestyler removes the guess-work, and the multiple trips and returns to the store.

It’s great anytime you need to share your vision with others. With more than 200,000 vendors checking in nationwide try Thumbtack for the next unexpected maintenance request. It’s more likely than not that you may get an emergency call during unexpected conditions.

If you can’t get there it’s worth giving Thumbtack a try. You can search for contractors by listing the job and they will send you the bid. You don’t have to accept anyone you don’t want to and you have the ability to read reviews and check credentials.

Private messaging allows you the ability to ask questions before selecting a vendor. If your regular crews are behind on projects this app is a great back up plan. Think big picture. You can get started with a small job with these people and if you like their work then you can add them to your team down the road.

As you grow your portfolio you are constantly on the lookout for the next best deal. Auction.com allows you to find your next potential deal anywhere. This free online auction app has over 30,000 properties to select from. It’s powerful features include using an interactive map in both local and national markets with the ability to access details and property photos.

You can use the search and bid features while you are on the move. You no longer need to feel limited by attending auctions. You can start due diligence research with free title information or HomeDisclosure.com reports. Whether it is foreclosure or bank owned homes this is a leading source for the real estate marketplace.

No mobile app list is complete without the power of the app that allows you to finalize the deal, cue Docusign. Docusign saves you from the time and resources associated with completing business critical transactions. This app keeps everyone more productive and accountable from purchases to rentals.

Once you have reviewed the details of the agreements or contracts it’s both simple and secure to e-sign. Forget about the wasted time associatedwith sending out lease renewals to be signed andnot knowing if they are getting to your tenant securely.

This application has been a huge timesaver for us and our clients. It is a must for anyone looking to increase output and efficiency.

As an investor you are constantly on the road looking for properties or checking out existing properties. Make sure to dot your I’s and cross your T’s with the amazing technology available to you today.

From the array of Google products to the apps listed above this only skims the water on the countless ways you can improve your business productivity. Take advantage of these today and you will see a difference!

Choosing the Right Neighborhood

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By Marco Santarelli

Classifying a neighborhood by “type”, or what many investors refer to as a “grade”, is typically nothing more than a subjective description. Although most people will have a general idea of what is being referred to, in my experience it is usually nothing more than a qualitative rather than quantitative description.  Because of that ambiguity, we’ve developed a proprietary, simple grading system that we use with all our investment-grade properties. To help you understand this, a basic overview and description follows:

NEIGHBORHOOD TYPES

Low Income (“C” and “D” grade neighborhoods)

Low income neighborhoods generally have a large portion of their residents on government assistance (for example Section 8 housing assistance). The ratio of renters to owner-occupied homes is greater than 50% and often as high as 80%. These neighborhoods are almost always the most affordable (lowest-priced) areas within a market and usually have some of the highest rent-to-value ratios.

This provides some of the highest cap rates and cash-oncash returns compared to other neighborhood types. You will find substantial area anchors including schools, churches and shopping in these neighborhoods. The anchors are there to meet the needs of the people that live there. Low income neighborhoods are best suited for the wholesale (flip) strategy.

Moderate Income (“B” grade neighborhoods)

Moderate income neighborhoods are similar to Low Income neighborhoods with one critical difference – higher home ownership. While low income areas have a large portion of their residents on government assistance, moderate income areas have a large portion of residents working in the blue-collar sector. This stabilizes the neighborhood and makes for a more attractive investment area.

The ratio of renters to owner-occupied homes is more balanced and closer to 50% for each. Area anchors are similar to low income neighborhoods but with home owners being anchors as well. Moderate income neighborhoods are best suited for the wholesale (flip) and buy-and-hold strategies.

Middle Income (“A” grade neighborhoods)

Completely different in almost every way to low income and moderate income neighborhoods. The biggest differences are homeownership and types of employment. Most of the residents own their homes in these neighborhoods and are employed in high-level blue-collar jobs or in the white-collar sector. Middle income areas are excellent for long-term holds because of the stable nature of the area and tenants.

The ratio of renters to owner-occupied homes is closer to 80% owners and 20% renters. Middle income areas will have a greater number of anchors that meet the wants of the people that live there. These include the three “Ms”: malls, movies and meals. Middle income neighborhoods are best suited for retail fix-andflips and buy-and-hold strategies.

HOME VALUES

Home values vary from market to market, and between neighborhoods within each market. So one should not choose a neighborhood based on the market values alone. It is usually best to target those neighborhoods where property values represent the affordable housing stock in the middle market.

These properties are often within desirable neighborhoods making them easy to lease, buy and sell. Properties in the upper-end of a market’s price spectrum often don’t provide desirable rates of return, while properties in the lower-end of a market’s price spectrum often provide some of the highest expected returns but with the risk of attracting some of the lowest-quality tenants.

SCHOOLS

When it comes to residential real estate investing, it is not as important to have top-rated schools as it is to have multiple schools located in the area. Too many investors put more weight and emphasis on the school’s rating than all the other factors which can be a mistake and cost you in lost opportunities.

While many of our investors choose properties in neighborhoods with some of the best school districts, when it comes to investment properties, often times these properties come at a premium price relative to the income it generates. Many renters are just not willing to pay premium rents for premium schools.

CRIME

Generally speaking, better neighborhoods (“A” and “B”) will have below average crime rates (both violent and property crimes). Although lower relative crime rates are certainly a desirable characteristic to have, it is not the most important factor in your neighborhood selection criteria.

Finally, if you’re working with a reputable company to help you find or provide you with investment-grade properties then they should be able to advise you on the various markets and neighborhoods as well as provide you with detailed information such as neighborhood characteristics and demographics.

Personal Service in a Busy Financial World

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By Anita Woods

Investing in property can be frustrating, especially when you’re always searching for good financing options that suit your time-frame as an investor.

Having someone in your corner toprovide quality information and advice can help you reach your goals more quickly than going at it alone.

Steve Bighaus’s clients know they can count on him when they need to finance a new opportunity, even when that opportunity is their own place of residence.

Bighaus has a vested interest in the success of property investors…it’s why he does what he does. His number one goal is to become the all-in-one resource for property investors.

But as a forward-thinking kind of guy, Bighaus is always on the lookout for ways he can improve his processes to get better results for his clients.

One such process is technology, using it efficiently and effectively.

That’s why, after speaking with thirty to forty companies, Bighaus settled on working with Sierra Pacific Mortgage Company. They understand his goals as a specialist in lending to investors, and they share his vision of using technology to deliver exceptional products for his customers.

One exciting development is the creation of a new loan origination system that will allow a borrower’s information to be obtained straight from the source.

This will simplify the process for both investors and homeowners and expedite the loan origination process.

One particular issue that many fix-and-flip investors are facing is the challenge of finding eligible buyers for their properties.

Steve’s research has found that these investors are experiencing a dismal fall-out rate of 40 to 50 percent.

As part of his goal to be a full-service company for investors, Steve and The Bighaus Team at Sierra Pacific Mortgage Company aspire to preclude any potential problems as early in the process as possible.

Using all of the tools at their disposal, they can provide quality pre-approval letters towards the goal of improving results for investors. Other tools that Bighaus can use include an automated system for appraisals that will let the lender know whether or not an appraisal is needed, and a great customer relationship system.

And as any of his customers will tell you, Team Bighaus is known for their stellar customer service. Whether you leave a voice message, drop an email or send a fax, you will receive a response the same day.

Need a pre-qual letter and it’s the weekend? Just call Steve Bighaus! He’ll take care of it.

Think of him as your personal banker – someone you can count on to be in your corner.

Bottom line, while pricing is important, there’s something Bighaus and his team can offer that few can: Responsive customer service paired with innovative technology to create exceptional products to help investors grow their wealth.

Q-an-A with Dani Lynn Robison with Freedom Real Estate Group

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A Question and Article Interview with Dani Lynn Robison, Co-Founder of Freedom Real Estate Group

 

 

Dani Lynn Robison is no stranger to real estate.

In fact, she is a member of the esteemed Forbes Real Estate Council and is Co-Founder of her own turnkey investment business – Freedom Real Estate Group in Dayton, Ohio. With her rapid success in real estate over the past 10 plus years, we sat down with her to find out a bit more about her success, what she’s doing now, and the advice she has for real estate investors.

INVEST IN READING THIS ARTICLE, REALTY411 GOLDEN NUGGETS , INCLUDE:

  • Discover how a life transition can result into a lucrative passion with real estate.

  • Find out what it takes to be a turnkey provider in this competitive environment.

  • Get an advantage on how a professional buys and sells real estate investments.

  • What does the future have in store for rentals in the Midwest?

  • How does real estate compare to the stock market, get a perspective.

Q: How did you get started in real estate?

A: Flip (her husband) and I spent about 10 years of our life after college traveling on cruise ships as musicians and art auctioneers. Once we were back on land, we both wanted something that required less travel and put us in one place. I decided to pursue and learn three different interests of mine and choose one. First, I tried finance. Didn’t like it. I moved on to mortgages and lending. Didn’t like it either. Finally, I landed on real estate sales. I became a REALTOR® and guess what? Didn’t like it either. Flip and I both became REALTORS® in 2008 at the height of the recession.

It was tough. So we decided to attend an educational seminar put on by Phil Grove. Soon we became part of his expert panel as we were his most successful students. After a few years investing in real estate in Texas, Florida, Arizona and other states, we were turned on to the concept of turnkey investments.

I loved the idea because it is all about helping others create cash flow and financial freedom for themselves, which was exactly what we were passionate about doing for ourselves. Now we could help others do the same and they could benefit from our experience and knowledge. We started doing it and haven’t looked back.

Q: Tell us a bit more about your current business and what you’re doing.

A: My main focus is turnkey investing. Basically, we buy properties, rehab them to our standards, rent them to a tenant, put property management in place, and in turn sell it to a real estate investor who wants monthly cash flow without the hassle. It’s an all in one, done for you real estate investing system.Most of our clients are busy professionals who understand the power of building wealth with real estate and they want to get involved, but don’t have the time, resources, knowledge or even interest to learn more about it.

An added bonus of investing this way is your investment doesn’t have to be local to you. With turnkey, you’re able to select markets with high returns that may be across the country. As long as you’re partnered with a trustworthy turnkey company, your asset should be well taken care of.

Q: Your business is located in Dayton, Ohio. Why Dayton?

A: Dayton is great for generating cash-flowing assets. A few things play into that. One, you can buy property much cheaper here than in a lot of other metro areas like Los Angeles, Miami, and Chicago. Here, a single-family property that has 3 bedrooms, 2 bathrooms will cost you as little as $75,000. Try getting that in one of those cities I just mentioned. With that $75,000 investment, you’re cash flowing about $730 per month after taxes, insurance, and management fees. That’s a 12% return on your investment. Once you get into properties with two units and higher, the returns can get even better.

We offer some properties with 15% returns. Two, the greater Dayton area has a history of a greater owner to renter ratio. Right now, it’s about 60% home owners and 40% renters. That means there is a solid number of renters in the area needing housing. Three, it’s a stable economy. There is definitely growth happening in the greater Dayton and Cincinnati area. The urban core of both cities is booming. Dayton has some staple businesses that have long been here and will continue to be. For example, Wright Patterson Air Force Base, one of the largest research bases in the military and the largest single-site employer in all of Ohio is based in Dayton.

Q: So why not just do real estate investing and rentals myself?

A: I’ve been a real estate coach since 2010. Over 90% of students fail. Either they don’t have the time, passion, or money. It’s always one of those. Seasoned investors have all experienced failure. It’s part of learning. Failures that have cost us hundreds of thousands of dollars.

We’ve done it. If you want to do it, more power to you. Real estate has a huge learning curve. Plus it’s full-time. If you do it right, if you do it well, it’s more than full-time. With no experience in real estate, you’ll likely find yourself with a money pit of a property, get frustrated, and give up.

Q: How does turnkey investing compare to investing in the stock market?

A: I love the cash flow and asset protection aspect of turnkey investing. Renters will always exist. There will always be demand. Plus, if you decide to sell off your properties, you will always have a tangible asset that has worth. Also, real estate isn’t as volatile as the stock market.

Even if the real estate market crashes, there will always be a recovery. Plus, if it crashes, you fall back on cash flow. It’s rare that rents go down – even in a recession. They may not increase but you will still be getting consistent cash flow every month. It’s just not the same with the stock market.

Q: Speaking of a market crash, how do these assets weather that?

A: When you’re buying turnkey properties, you should be buying for cash flow. Yes there are a few markets that boast appreciation as a selling point. I never advise that. Appreciation is speculative and never guaranteed. If you have a 10-year plan, what happens when the market crashes at 9 years and 9 months into your plan? Not good, right? Buy turnkey properties for cash flow. Appreciation is an added bonus when you decide to exit.

Your goal shouldn’t be to have $1 million dollars in your bank account. It should be to have $10,000 in cash flow coming to your mailbox every month. That’s how you achieve true financial freedom.

Q: What does the future look like for Freedom Real Estate Group and you?

A: I plan on continuing to work on and expand our turnkey business. We’ve been able to meet some great people across the globe. I love it. Especially the wonderful success stories. We plan to expand into some other markets. By the end of 2018, we will be expanding into Cincinnati. We’re hoping within the next 12 months to have a presence in two other markets as well but that is still in the works.

Q: Finally, what advice do you have for someone new to real estate investing who wants to begin?

A: If your passion is real estate, find someone local and learn from them. Always have the mindset of there is something new to learn. I’m still learning. If your passion is different from real estate, as in you’re a doctor, teacher, or dentist, align yourself with a real estate investment professional to define and set your goals. That’s how I approach all client conversations. I want to know your goals so I can put you on the right path to get there. Real estate is a great asset for passive income.

If you’re a busy professional who doesn’t want to quit their job and get into real estate full-time, turnkey investing may be a good option. Eventually, once you’ve built a healthy portfolio, you’re working because you want to – not because you have to. That’s true financial freedom.

For more information on turnkey real estate investments, or to schedule a call with a Freedom Real Estate Group investment counselor, please go to their dedicated turnkey website at: www.TurnkeyOhio.com.

LEARN MORE ABOUT THE LEADERS OF FREEDOM REAL ESTATE GROUP

Dani Lynn Robison, Co-Founder, Managing Partner

Dani has been a Licensed REALTOR®, Distressed Property Specialist and Note Consultant since 2009. She has participated in countless real estate transactions and evaluated thousands of houses. Dani’s joy comes from creating win-win situations that help sellers, buyers, and the community.

Dani grew up in Phoenix, AZ and earned an Music Performance degree from Southeastern University. She’s lived in Florida, Texas and Ohio and traveled on cruise ships for 10+ years where she met her husband, Flip. She and her husband are the proud furry parents to one golden retriever, Tucker and two feisty bulldogs named Spartacus and Rosie.

Eric Jones, Director of Sales & Marketing

Eric is a licensed Realtor and has been an integral part of a marketing team for a large, multifamily property management company for over 10 years. While he was there, he marketed and advertised their properties to achieve maximum occupancy and improve their customer experience to be one of the top-rated communities. He was also responsible for doing company-wide presentations to improve sales numbers and motivate the team.

He holds a Bachelor’s degree in Public Relations and Marketing from Northern Kentucky University. With in-depth experience in the real estate and rental market, he constantly strives to improve the customer experience with every transaction and any organization he is involved with. Eric lives by the quote – “Go the extra mile. It’s never crowded.”

Eric grew up in a small town in southern Kentucky before relocating to the Cincinnati and Dayton, Ohio, area for college. Eric currently hangs his hat in Springboro, Ohio, with his partner Matt and his darling step-daughter Lilly. In his free time, you can find Eric working with youth performing arts organizations across the country or jet setting to a warm location with a beach.

 

Key Do’s and Don’ts of Probate Leads: How to Find Motivated Sellers

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By Kristine Gentry, VP of Innovation, US Probate Leads

As the real estate market continues to tighten, successful investors are diversifying their lead streams and trying new sources. One of the most underutilized sources of leads are probate leads. Why are they underutilized?

Primarily because people do not understand the opportunities that are available or how to quickly and easily obtain probate leads. In addition, some investors do not know what to do with probate leads once they have them. If you are considering using probate leads to increase your opportunities, or if you already have probate leads, below are some tips for helping you make the most of your leads.

What Are Probate Leads?

Probates leads include information on property that is part of a legal filing after the death of a loved one. These cases include many types of property owned by someone who has passed away including homes, vacation homes, cars, RVs, businesses, commercial property, rental property, artwork, and other personal property. These cases are listed in each county after the death of a loved one where a probate needs to be filed and are controlled by the local court.

Oftentimes, this property has to be sold in order to pay for medical, tax, legal, and funeral expenses. The court will assign an Executor to handle the sale of the property so that these obligations can be met and the heirs can receive any remaining funds.

As part of an overall investment strategy, probate leads are valuable because they come with very motivated sellers. Executors need to deal with the property that is in the probate filing in order to meet the court requirements. Many times, they need cash in order to pay bills that have been left after the passing of their loved one.

Often, they do not live near the inherited property and simply want to sell it as quickly and easily as possible. If they know the property needs updates, they may not want to have to deal with that hassle and would rather sell the property at a discount. In addition, since they inherited the property, anything they make on the property is extra for them so they are less worried about getting maximum value for the property.

Probate properties may be available for thirty to fifty percent off of the market price and are generally available for a quick closing. So, probate leads are a great way to diversity and increase your lead source. But once you have probate leads, what do you do?

Probate leads are not like all other leads and should be treated differently. Do offer to help the executor/heir. Remember they have recently suffered a loss and are grieving. Since probate leads are generated when probates are filed in a local courthouse after a death, it is necessary to be especially warm and considerate when speaking with executors and heirs. They have recently gone through a very tough time and are probably overwhelmed with the loss of their loved one as well as all the legal and financial issues they are faced with as the executor of the estate.

For some executors/heirs, the last thing they have the time or energy to deal with is a recently inherited piece of property. They may not live near the property and may not have the time to take care of basic issues with the house. For instance, suddenly having another yard to maintain can seem daunting.

You can help by offering to mow the lawn, trim shrubs, or water plants. Sometimes the heir or executor simply need someone to talk to. You can be that friendly person they can speak with. Offer condolences and let the executor or heir take the lead in how much they want to talk about their loved one. Simply asking what they need help with can go a long way. Do continue to reach out to the executor/heir. One mailing or phone call will not be enough.

Unlike other leads sources, it is hard to know when will be the right time to reach out to an executor or heir. In some cases, heirs want to sell property as fast as possible. They may be ready to sell quickly so they can move on. In other cases, heirs are reluctant to sell their loved one’s property.

They may hold onto it for months before feeling pressured to do something with the property. We have learned that it is important to regularly reach out to executors and heirs and recommend doing so for at least a year. Sending a mailer or making a phone call every other month is a good timeline. The important thing is for the executor or heir to have your contact information available when they decide they are ready to sell.

Do be honest about how you can help and why it is beneficial to you both. Executors and heirs have a lot going on. They will know that you are interested in making money and not just a stranger who showed up to help out of the blue. It is best to be honest and explain that you make money by purchasing properties below market value, fixing them up, and reselling them. And that it might be helpful for them to sell you their property below market value so that they do not have to deal with the hassle of fixing up a house to sell and then listing it.

Remind them that you can help them get cash quick, but there are no guarantees of how long it would take for the house to sell at full value.

This is a win/win situation for you and the executor or heir, and you should be up front about that. Don’t forget about historical leads. Heirs often don’t sell right away. New users of probate leads often think that the leads have a short time on the market. However, that is not the case. Generally it takes some time for Executors to get all of the paperwork filed and to go through their loved one’s things before they are ready to sell.

There is also the process of grieving, which can cause Executors to hold onto a property for a time before they are willing to sell it. With these parameters in mind, real estate investors who are looking at probate leads will find that Executors who are selling property may not be ready to sell for twelve months after the filing. In many cases, the leads are still viable eighteen months after the passing of a loved one. This allows for plenty of time for real estate investors to make contact with the Executor. Therefore, a successful probate investing practice should include the usage of historical leads. Don’t try to get leads on your own. Purchase them from a reputable source.

Many investors have attempted to gather leads themselves from courthouse records and quickly grew tired of the painstaking and time consuming process of doing so. Now, there is no need to gather these records on your own. Several companies provide probate leads for you. Most specialize in only a handful of counties – often counties where probates are available online. However, some companies have researchers trained to go to courthouses where these records are not available online, which is the case for the vast majority of counties.

U.S. Probate Leads is a family-owned company that has been in the probate business for over 15 years. We have more experience and offer high-quality ads that include skip tracing for executors and addresses.

Don’t waste your time gathering probate leads. Instead, contact us to learn about why our leads are the best on the market. Get Access to Probate Leads Today. Using probate leads is a great way to find more leads in your area as a real estate investor. With long-term viability and Executors that are motivated to sell, you will see that probates are a way to quickly find discounted properties.

If you are looking for diversity in your lead package, then you can get access to probate leads easily and quickly by vising US Probate Leads. We offer county by county listings of the probate leads listed in your area delivered directly to your inbox. Each county in the United States is covered by our trained team of lead specialists. Our team makes sure that you have the leads that you need in order to make your business grow.

Want more information?

You can visit us at www.usprobateleads.com today and get more information on our lead services or sign up. In addition to our lead service, we also offer seminars, webinars, eBooks, software and individualized mentoring for dedicated investors. Contact us today for more information and learn how we can help you to meet your real estate goals.

Probate Leads Available Now – In Your Area US Probate Leads has access to virtually any county in the United States, meaning regardless of where you live, you can start receiving leads monthly.

Go to the US Probate leads site: www.usprobateleads.com, click on your state and get started. To get a 10% discount, place an order before September 30th. Use discount code “Realty411.” Or you can contact them directly at: (877) 470-9751.

Now is the time to make your mark in this little-known niche – never before have more properties become available than will in the coming years. Becoming a US Probate Leads subscriber could really be the start of a whole new future, a more lucrative career, and an exciting investment opportunity.

– Article By Kristine Gentry, VP of Innovation, US Probate Leads

DOWNLOAD THIS ARTICLE AS A PDF NOW

Listen to LIFE-CHANGING REI Tips with Larry Goins

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Don’t Waste Your Commute Time – LEARN WHILE YOU DRIVE

University on Wheels in the way to expedite growth + explode your income.

What is University on Wheels?

It’s simply making your car a university on wheels by listening to personal and professional development podcasts during your commute.

Some implement this technique further by listening to programs while their doing chores around the house, and at the beginning or end of their day.

As real estate entrepreneurs it’s important to use our TIME WISELY.

REMEMBER: Time is the most important asset we have, don’t wait a second of it.

We want to help your mission of Growing, Learning and Transforming your life to a new level of success and abundance.

Listen in to this week’s Invest Wisely podcast with our guest, Larry Goins, and learn transformational tips to take you higher.

Larry is one of the most active investors in the country and he’s ready to help you grow your real estate portfolio too.

JUST CLICK HERE to connect to our Invest Wisely podcast — Happy Investing!

 

10 Rules of Successful Real Estate Investing

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By Marco Santerrelli, CEO of Norada Real Estate Investments

I came up with the following rules of successful real estate investing over my many years of successes and failures. These are the same rules I follow today and share with our clients at Norada Real Estate Investment.

1. EDUCATE YOURSELF Knowledge is the new currency. Without it you are doomed to follow other people’s advice without knowing if it’s good or bad. Knowledge will also help take you from being a “good” investor to becoming a great investor, and that knowledge will help provide a passive stream of income for you or your family.

2. SET INVESTMENT GOALS A goal is different from a wish; you may wish to be rich, but that doesn’t mean you’ve ever taken steps to make your wish come true. Setting clear and specific investment goals becomes your road map and action plan to becoming financially independent. You are statistically far more likely to achieve financial independence by writing down specific and detailed goals than not doing anything at all. Your goals can include the number of properties you need to acquire each year, the annual cash-flow they generate, the type of property, and the location of each. You may also want to set parameters on the rates of return required.

3. NEVER SPECULATE Always invest with a long-term perspective in mind. Never speculate on quick short-term gains in appreciation, even in a heated market experiencing double-digit gains. You never know when a market will peak and it’s usually 6 to 9 months after the fact when you find out. Don’t chase after appreciation. Only invest in prudent value plays where the numbers make sense from the beginning.

4. INVEST FOR CASH-FLOW With few rare exceptions, always buy investment property with a positive cash-flow. The higher,  the better. Your cash-on- cash return is directly related to the before-tax cash-flow from your property.

Cash-flow is the “glue” that keeps your investment together. Your equity will grow over time (through appreciation and loan amortization), while the cash-flow covers the operating expenses and debt service on your property.

5. BE MARKET AGNOSTIC The United States is a very large country made up of hundreds of local real estate markets. Each market moves up and down independently of one another due to many local factors. As such, you should recognize that there are times when it makes sense to invest in a particular market, and times when it does not.

Only invest in markets when it makes sense to do so, not because you live there or you bought property there before. There’s an element of timing and you don’t want to buck the trend.

6. TAKE A TOP-DOWN APPROACH Always start by selecting the best markets that align with your investment goals. Most investors start by analyzing properties with little to no regard of its location. This can be a big mistake if you don’t consider the investment in light of the market and neighborhood it’s in. The best approach is to first choose your city or town based on the health of its housing market and local economy (unemployment, job growth, population growth, etc.). From there you would narrow things down to the best neighborhoods (amenities, schools, crime, renter demand, etc.). Finally, you would look for the best deals within those neighborhoods.

7. DIVERSIFY ACROSS MARKETS Focus on one market at a time, accumulating from 3 to 5 income properties per market. Once you’ve added those 3 to 5 properties to your portfolio, you would diversify into another prudent market that is geographically different than the previous one. Typically that means focusing on another state.

One of the underlying reasons for diversification within the same asset class (real estate), is to have your assets spread across different economic centers. Every real estate market is “local” and each housing market moves independently from one another. Diversifying across multiple states helps reduce your “risk” should one market decline for any reason (increased unemployment, increased taxes, etc.).

8. USE PROFESSIONAL PROPERTY MANAGEMENT Never manage your own properties unless you run your own management company. Property management is a thankless job that requires a solid understanding of tenant-landlord laws, good marketing skills, and strong people skills to deal with tenant complaints and excuses. Your time is valuable and should be spent on your family, your career, and looking for more property.

9. MAINTAIN CONTROL Be a direct investor in real estate. Never own real estate through funds, partnerships, or other paper-based investments where you own shares or other securities of an entity you don’t control. You always want to be in control of your real estate investments. Don’t leave it up to corporations or fund managers.

10. LEVERAGE YOUR INVESTMENT CAPITAL  Real estate is the only investment where you can borrow other people’s money (OPM) to purchase and control income-producing property. This allows you to leverage your investment capital into more property than purchasing using “all cash”. Leverage magnifies your overall rate-of-return and accelerates your wealth creation. As long as you have positive cash-flow and your tenants are paying off your mortgage for you, it would be foolish not to borrow as much as possible to buy more income property.

For more information, visit: http://www.noradarealestate.com/

 

Land Trusts vs. Limited Liability Companies

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By Randy Hughes aka Mr. Land Trust

Recently I read an article by an attorney telling his readers not to use a Land Trust. He recommended titling your investment property in a Limited Liability Company. His reasoning was that Land Trusts are only a “deterrent” to a lawsuit and they do not provide “true” asset protection. The attorney went on explaining how any lawyer “worth his salt” would find out you are the beneficiary of a Land Trust as the result of a judgment debtor’s exam (which is a hearing in a court room…sometimes called a Citation to Discover Assets). The attorney writing this article concluded that you have “zero” privacy with a Land Trust and if you want privacy you should “save the expense” of a Land Trust and title your investment real estate directly into an LLC (Nevada or Delaware).

After over 40 years in the real estate investment business, I can spot an attorney who understands the law but does not have practical real world experience. I agree that LLC’s have better asset protection than a Land Trust, but Land Trusts have far better privacy elements than LLC’s. I use LLC’s in my business but NOT to hold title to investment property. Let’s review the benefits of using a Land Trust.

LAND TRUSTS:

  • Are NOT registered anywhere on the planet
  • Do not require a registered agent
  • Pay no franchise taxes
  • Cost nothing to form (you can form them yourself)
  • File no tax returns
  • Require no tax ID number
  • Can be formed in a state other than where the property is located (for terrific privacy and asset protection)
  • Can easily hold each property separately from other properties to keep all investments insulated
  • Can have an LLC, Corporation or Personal Property Trust as its beneficiary

Experienced real estate investors understand that putting all of your properties into any one entity (be it an LLC, Corporation or a Land Trust) is a nexus for a lawsuit. Remember grandma’s advice to not put all your eggs in one basket? It makes logical sense to put each property into its own separate Land Trust and then make the beneficiary of the trust your LLC or Corporation.

This yields the best of both worlds from a privacy and asset protection standpoint. Since the Land Trust Agreement is not recorded anywhere no one can find out who the true owner of the trust is without a full blown lawsuit…which is expensive for your adversary. Furthermore, if the property is in one state, the Land Trust is formed in another state, and the LL C beneficiary is registered in a third state you get a dy-no-mite structure that is not only difficult to unravel but legally expensive to pursue. Most contingency fee lawyers would give up and start looking for another sucker to pursue.

Real estate investors are more susceptible to a lawsuit than most other Americans. The general public’s perception of a real estate investor is that they do not have any debt on their property, have lots of cash in the bank and tons of positive cash flow. So, even if the investor is upside down on their property debt and suffers monthly negative cash flow they are still at the mercy of the contingency fee lawyer and his/her dead-beat client. Keeping property isolated in separate Land Trusts makes logical practical sense to those of us in the trenches every day. A huge benefit to holding title to each property in a separate trust is the ability to finance without affecting the other properties.

You can also sell property on an installment contract basis without affecting other properties. If you title multiple properties in one LLC the lender will want to tie up all the assets of the LLC as collateral for the loan on just one property. Take your advice from a streetwise investor with decades of real-life experience. Use a Land Trust to hold title to your investment real estate…you will be glad you did!

To receive a FREE copy of my booklet “50 Reasons to Use a Land Trust” send me an email at: mailto:[email protected]

 

NEWSFLASH: The Record Has Been Broken…

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In 2017, CIX.com broke records for connecting investors with funding. We’re talking nearly $3 BILLION in loans facilitated monthly!

What does that mean for you? In 2018, we want to help fund twice as many deals! We’ve already added more lenders to service your needs and even more are coming on board in the weeks ahead. That means more lenders compete to fund your investment properties – residential and commercial for your short or longer term capital needs.

In the last two months alone, our lending partners brought hundreds of millions more capital to the table; they’ve loosened guidelines and are eager to become your funding partner in 2018.

Simply put, this means more options and better terms for your next investment property. January’s numbers are going to be epic. Why not get your share?

Get connected in less than two minutes – and the lenders that will immediately contact you are vetted, verified, and 100% secure!

Submit your application and start 2018 with a locked and loaded funding option for your next investment!

Putting the REAL in real estate,
Connected Investors and Realty411

Zoom to $uccess in 2018 by Learning from Millionaires at REALTY411 Expos – LEVERAGE YOUR TIME WITH OUR RESOURCES & CONNECTIONS

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Stacks of One Hundred Dollar Bills with Small House.

Leverage is the Answer.

If you, like most people enjoying a new year, are questioning how you can make more money in 2018 — then you need to learn about leverage.
What is leverage?
“The use of a small initial investment, credit, or borrowed funds to gain a very high return in relation to one’s investment, to control a much larger investment, or to reduce one’s own liability for any loss.” (Dictionary.com)

Whether it be investing in real estate, which is a tangible asset, or investing in paper or digital assets (such as stocks, FOREX, or the latest craze cryptocurrency), the principle is the same. And, leverage can increase your bottom line faster, IF the right investment is chosen.

A person can also leverage their time, money and connections to make a maximum impact and get from point A to point B faster and with less effort. We’ll discuss this after a quick illustration about how leverage can create a windfall… quickly.

Leverage is what catapulted my investment career many years ago, and it was a great learning lesson on appreciation and the leverage of existing capital.

At the time, Southern California was going though an upswing. The markets were appreciating nicely and I knew it was time to get in to leverage my time and resources for maximum profit.

I utilized funds from a recent home refinance to put a down-payment on a four-unit property, which was of fair market value, but a total fixer-upper.

Before I made the offer (beating out several others with a wonderful technique I will disclose in another article), I made sure the property would pay itself off from the rents. Important: I also saved some funds from the cash I had to do the work needed on the property.

Thanks to an appreciating market and our diligence in research in finding a value-add property, we soon saw amazing equity. As easy as this sounds, behind the scenes, months of daily work went into this.

To find this diamond of a deal, I had to be on alert for months, scour the internet for deals, drive around my target markets, plus engage in busy work on other deals that went absolutely nowhere.

Hard work is always rewarded, and within 18 months, we were in escrow again selling the same four-unit complex we purchased for $428,000 for a new price of $676,000. We took a $80,000 boot (cash) upon the sale and did a 1031 Exchange on the remaining balance to four multifamily properties out of state.

By investing outside of California, the equity from one single four-unit property was used to LEVERAGE into 24 apartments – 4 four-unit buildings.

So as you see, here are a few examples of how leverage can be used to Maximize your Time, Resources and Funds.

It was wonderful to receive that $80,000 check for my efforts and to go from owning a small complex to a portfolio of properties in two states!

The rewards of LEVERAGE have been duplicated over and over in my life, and now I’m lucky enough to be in a position to give back this and so much other first-hand knowledge that I have accumulated throughout my 20-plus career as a landlord in California and other states.

One of the ways I do this is by publishing REALTY411 (our alternate cover is Real Estate WEALTH), as well as REI Wealth Monthly. When I started 11 years ago, I was a one-woman machine and handled everything: sales, design, marketing, reporting… you name it, I did it!!
Now, I have an international staff and two offices in Santa Barbara County, plus I travel the country hosting LIVE EXPOS!
Last year, we produced 27 events in nine states, which brings me to how YOU can leverage this.

LEVERAGE YOUR TIME WITH US!

REALTY411 IS THE ORIGINAL REALTY INVESTOR MAGAZINE AND EXPO COMPANY

Now that you know the key to going from one level to the next is by catapulting yourself though leverage, I invite you to join me as we grow together at our events.

Without a doubt, I was able to leverage my time due to the amazing knowledge I’ve accumulated from so many years of hosting events, where I learned from some of the most active and successful investors and entrepreneurs around the country!

Our events are COMPLIMENTARY because we truly want to share the day with you and hope to positively impact your life. Be sure to visit REALTY411expo.com, our event website, for our Spring 2018 schedule (or see information below).

By the way, I recently once again, leveraged my resources and connections. My attorney, who is very well connected in Hollywood, introduced me to some award-winning producers and now I’m the executive producer of a TV pilot!?

Talk about the POWER OF LEVERAGE!!!

Let’s see how the Magic of Leverage will work in your life, visit Realty411expo.com

or sign up to be a free VIP member at: http://realty411network.com

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NEW YEAR, NEW LIFE, NEW PERSPECTIVE.

It’s 2018, and this is our year to LEVERAGE.

Are you ready to take action this year? Do you want to expand your mind, contacts and portfolio?

If so, don’t miss the opportunity to learn with the oldest magazine and expo owned by the same accredited investor since 2007.

We are the ORIGINAL realty investor magazine and expo company. Our sole mission is to expand knowledge and improve the lives of our readers.

And, without a doubt, 2018 is our time (and your time) to LEVERAGE with Minimum Risk & Maximum Reward!

We invite you to join us at one of our five complimentary expos this Spring to learn from investors who have been closing millions of dollars worth of deals, year after year. Talk with national landlords who have investments around the country. Meet like-minded individuals who may end up being future partners.

OUR LEVERAGE EXPOS – SPRING 2018

We Serve Complimentary Breakfast and/or Appetizers Are Available for Early-Bird Guests FOR ALL EXPOS!

START THE YEAR OFF RIGHT WITH SUCCESSFUL, ACTIVE INVESTORS WHO ARE READY TO EXPEDITE YOUR GROWTH!

PHOENIX, AZ – Jan. 20, 2018

Get MOTIVATED and have breakfast with local and out-of-town millionaire investors. Celebrate TWO new publications: Realty411 and REI Wealth Monthly (which is now also available in print too). Guests will receive over 200 PAGES of quality content created just for our publications. Attention wholesalers, investors or brokers: Do you need Operating Capital for your business or portfolio, we have the connections here!

SANTA MONICA, CA – Jan. 27, 2018

This event will have a special focus on the entertainment industry, and we will discuss and film some footage for our TV pilot, Property Pitch. Guests will have a chance to meet our award-winning producers and ask them “insider” questions about the entertainment industry! Guests are flying in from around the nation, multiple breakout sessions.
RSVP HERE NOW

SANTA CLARA, CA – Feb. 10, 2018

Join us in the HEART of Silicon Valley as we focus on Tech and the Trump Economy in this event. What’s in store for 2018 as far as Real Estate software and technology that can create more profits, with less work?! We will also discuss Notes, Tax Liens, Commercial Real Estate, How to Take action Today!
RSVP HERE NOW

SAN LUIS OBISPO, CA – Feb. 17, 2018

Discover the unspoiled beauty of the Central Coast of California as we host the ONLY real estate conference in this area. At this one-day conference, you’ll have the chance to meet investors from Paso Robles to Santa Barbara County. Meet the leaders of Central California – one of the most scenic and affluent areas in the state. This event is co-sponsored by Central Coast REIA.
RSVP HERE NOW

ATLANTA, GA – Feb. 24, 2018

Enjoy Southern Hospitality with local and national investors as they UNITE in Atlanta for REALTY411’s Leverage Expo. Discover the latest strategies for flipping by a local expert, how to raise capital (even if you have little or no experience), plus how to buy properties with tax liens for pennies on the dollar,AND lots of other great 411.
RSVP HERE NOW