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HOW TO ACHIEVE GENERATIONAL WEALTH IN REAL ESTATE

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By Joe Arias

In the last two centuries, real estate was how 90% of millionaires made their fortunes. To achieve generational wealth, there is no doubt that real estate should be the main asset class to invest in. For over two centuries, and arguably longer, real estate has continued to offer unique benefits for generating generational wealth in real estate. You are asking yourself whether it’s too late for you to start the journey to achieve this goal. The answer is no! It is never too late to begin. If you plan to pass down wealth to your kids or your grandkids, then real estate is the perfect asset class for this. To best understand how to achieve generational wealth through real estate, it is equally important to know why it works.

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Appreciation

If you are unfamiliar with what appreciation is in real estate, essentially it is defined as an increase in value over time. Real estate generally increases in value over the long run. Compare what a house costs in one of the most expensive real estate markets during the 1970s compared to the value of a home now in the 2020s. In 1970, you could buy a home in San Francisco for an average price of $25,000. An average home price in San Francisco now will set you back $1,700,000. That’s right, your grandparents’ home can be worth over 7 figures. What if they pass that home down to you? That would be considered generational wealth in real estate as you are now taking ownership of a million-dollar asset. Over time, appreciation works in favor of real estate as the asset class stays ahead of inflation.

Depreciation

One of the main benefits of investing in real estate is tax benefits. Depreciation is one of them. This does not mean that your home is losing value. Simply put, depreciation describes the ability to write off some of the value of your asset every year. What this does is significantly reduce the tax burden that an owner is responsible for. Essentially, you are protecting your wealth as your net worth grows. One of the main destroyers of wealth is tax liabilities. Therefore, it is important to understand the proper legal accounting practices that help reduce your overall burdens. Another benefit of depreciation is that often, the write off exceeds the amount of cash flow you may have brought in from a rental. The amount written off oftentimes is more than the entirety of the cash flow will actually help reduce your tax obligations. Of course, you do need to speak with a CPA to get all the details and to support you when filing for taxes. Most CPAs understand how to utilize depreciation properly.

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Loan Pay Down

Most investors of real estate use leverage to purchase properties. This involves taking out a loan to buy real estate and using a fraction of your available cash within the deal. In some cases, there are opportunities to buy without any of your own money. For the sake of keeping the concept simple, if you are just starting in real estate, you can take out a 30-year fixed mortgage with a low-interest rate. Over time as you rent your unit and earn an income from the cash flow, a part of the rent also covers the monthly expenses including the mortgage. Your loan’s principal payment is paid down over time. Each payment adds equity to your position gradually adding to your net worth. By the end of your 30-year term, you will have a fully paid off property that you can pass on to your children.

Leverage

One important wealth generator in real estate is the ability to buy properties using leverage. If you were presented with two options which would you choose? Buy one property free and clear for $100,000 or use the $100,000 towards down payments on 5 properties with each requiring $20,000 down payments. If you opted for the second option, then you understand the power of leverage. You are essentially making your money work harder for you. Tied with loan pay down, rental cash flow, and appreciation, your investments are magnified when you leverage your cash across multiple properties instead of sticking to only one deal.

Forced Equity

When you invest in real estate, investors have the opportunity to make a significant amount of money directly from the purchase of the property. Forced equity is defined as the wealth that is created when you buy a property at a discounted price and improve the property to be valued more. For example, let’s say you bought a property for $50,000 and added $25,000 in improvements, then based on the comparable homes in the neighborhood, your property could be worth closer to $100,000. By improving the property, an investor can force the creation of equity in their deals which overall is a driver of wealth.

Passing Your Property To Your Heirs

Now that you understand all the ways to generate wealth, it is also important to understand the different ways you can pass your properties down to your heirs. There are four main ways to accomplish this. First, you can sell your home to your kids. A second approach is simply giving the property to your kids. Bequeathing your property would be a third option. Last, a deed transfer can be done.

Each of the options presented has different ramifications from a tax and legal perspective so it is best to consult with your lawyer and accountant to gain the best insight for transferring over your real estate assets.

Overall, real estate can create generational wealth in a variety of different ways. It is no coincidence that 90% of millionaires were created through real estate. Consider starting your journey towards financial freedom and generational wealth.

Joe Arias

Joe Arias and his partners have flipped hundreds of properties in the Southern California Region. He has developed cutting-edge systems to simplify and scale the entire remodel process that can easily be applied to flipping, rentals, wholesaling, and other passive income strategies. More recently, Joe founded a real estate investing education company called RealSuccess Investments, allowing him to share his tools and systems with hundreds of up-and-coming investors. 

RealSuccess is focused on education on flipping, rentals, passive income, and wholesaling.

Joe is also a best-selling author. He has written 4 books: Finding your RealSuccess, First Steps to Flipping, R stands for Rentals and Retirement, and Wholesaling Real Estate.

“I came from Argentina when I was 20, I am 40 years old now. I didn’t know anyone, I am CERO generation, usually people say, I am first or second generation but I was the one that crossed the border, no language, no friends, no family, no money, nothing, nada… If I can do it, anyone can.”

From a young latino immigrant  to a celebrated real estate investor, Joe is a true testament to hard work and discipline. As an investor, he has made it his mission to help others achieve financial freedom while enjoying living a life of passion, fulfillment, and empowerment.

RealSuccess Website

www.ourrealsuccess.com

Personal Instagram: 

https://www.instagram.com/joeariasinvestor/

Real Estate Investment- Instagram: 

Instagram: https://www.instagram.com/realsuccesseducation/

Video For Finding Money from All Day Training (10 Hour Seminar)

https://vimeo.com/manage/videos/528446162

1 Hour Webinar

https://vimeo.com/manage/videos/530996751

Amazon Book#1:

Amazon Book#2

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.

Increase Real Estate Property Value Through A “Change of Land Use”

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By Joe Arias

Real estate is one of the very few investment vehicles where you can force appreciation of your asset. Additionally, there are a variety of ways to force appreciation in real estate which makes this investment class the most flexible to leverage for investors. One way to increase real estate property value is through a change in land use.

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Land use refers to the assigned zoning of a piece of land for a particular type of real estate. There are several types of land use that are typically used to classify a piece of land. The most commonly familiar type of land use is residential and commercial. Additional land use types include recreational, transport, and agricultural. Land use is subject to change with proper approval by the municipality that the land falls under. The most common laws associated with changing land-use types are zoning laws. Zoning laws involve the regulation of the use and development of the real estate.

The purpose of zoning is to divide a municipality into residential, commercial, and industrial. Zoning regulations may include the specific requirements as to the type of buildings allowed, location of utility lines, restrictions on accessory buildings, building setbacks from the streets along with other boundaries, size and height of buildings, and several rooms. Now that you are familiar with the basics of land use type and zoning, it is time to understand how to increase real estate property value through a change of land use.

Plottage

Plottage refers to the increase in value realized by combining adjacent parcels of land into one larger parcel. The process of combining the parcels is known as assemblage. What occurs often is the value of the whole parcel will be greater than the sum of the individual parcels. This is a great strategy when you have the opportunity to purchase the surrounding parcels of land.

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Conversion

This strategy refers to taking an existing building or land and converting the asset for another use. An example of this is taking an old commercial warehouse and converting it into a 100 unit residential apartment complex. Oftentimes, the best approach is finding underperforming commercial assets in growing markets and renovating it for better use that will provide long term cash flow and appreciation.

Zoning

Great for expanding population markets. This method requires taking zoned land such as agriculture and having it changed to residential or commercial. Think about the land that is in the path of progress. Do you live near a town or city that is expanding outwards towards agricultural land? You can spot the progress years in advance and buy up the land and change the land use for that land which ultimately will help boost its value as land becomes more scarce with the growth of expansion by the city.

Real estate has many angles that you can play. Changing the land use of land that you purchase is a fantastic strategy for those interested in taking advantage of appreciation. There are endless opportunities in several growing markets.

Joe Arias

Joe Arias and his partners have flipped hundreds of properties in the Southern California Region. He has developed cutting-edge systems to simplify and scale the entire remodel process that can easily be applied to flipping, rentals, wholesaling, and other passive income strategies. More recently, Joe founded a real estate investing education company called RealSuccess Investments, allowing him to share his tools and systems with hundreds of up-and-coming investors. 

RealSuccess is focused on education on flipping, rentals, passive income, and wholesaling.

Joe is also a best-selling author. He has written 4 books: Finding your RealSuccess, First Steps to Flipping, R stands for Rentals and Retirement, and Wholesaling Real Estate.

“I came from Argentina when I was 20, I am 40 years old now. I didn’t know anyone, I am CERO generation, usually people say, I am first or second generation but I was the one that crossed the border, no language, no friends, no family, no money, nothing, nada… If I can do it, anyone can.”

From a young latino immigrant  to a celebrated real estate investor, Joe is a true testament to hard work and discipline. As an investor, he has made it his mission to help others achieve financial freedom while enjoying living a life of passion, fulfillment, and empowerment.

RealSuccess Website

www.ourrealsuccess.com

Personal Instagram: 

https://www.instagram.com/joeariasinvestor/

Real Estate Investment- Instagram: 

Instagram: https://www.instagram.com/realsuccesseducation/

Video For Finding Money from All Day Training (10 Hour Seminar)

https://vimeo.com/manage/videos/528446162

1 Hour Webinar

https://vimeo.com/manage/videos/530996751

Amazon Book#1:

Amazon Book#2

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.

What to Look for in Income Property?

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By Joe Arias

Investing in rental properties is a great opportunity to establish an alternative source of income outside your main career. If done well, you can even retire early and live off your rental income. The key to investing in income properties is establishing strong criteria and understanding what to look for that would qualify a property as the right investment for you. By understanding exactly what to look for in the beginning, you can establish a strong filter when researching properties and only allow the ones that align with your investing strategy.

It’s important to establish the type of criteria you have for yourself. How much cash flow are you looking for a per deal? Some people live in markets where $200 per door is a healthy cash flow and is desirable. Other more expensive markets produce an average of $500 to $800 a door. Depending on how much cash flow you are interested in earning from a deal, further narrows the type of properties you will be buying.

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What price range can you afford? If you live in a state like California, an investment property may cost you upwards of $700,000 compared to states like Kentucky where a property may only cost $50,000. Budget what is possible for you. Some investors may house hack and leverage 5% down while others are forced to put 25% down. If you live in a market and know the prices, understand what type of financing you have accessibility to and what you can afford.

Are there certain specifications about the home that you prefer? Some investors do not want to purchase a home that may be 50 or 100 years old while other investors only look for those types of homes. Maybe you look for a certain bedroom count or amount of bathrooms. Some investors look for spaces that additional bathrooms or bathrooms can be added so a basement would be very beneficial.

Research different neighborhoods. Especially if you live in a large metropolitan area or city. Sometimes investing in one street and not the other can make a huge difference in the purchase price and potential rental comps. Schools may play a role as well. It is better to invest in a part of town with a good school district. People are willing to pay more for their kids to go to a good school.

The job market is critical when looking at the rental market. Are there enough employers in the area? There are markets across the country where the main employer in town is one factory and if they go out of business, so does the whole town. You want to make sure there are a large number of employers and companies in the area that can sustain a healthy job market.

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Overall, many different factors go into looking for income property. Each investor should develop their own criteria based on their situation and needs. By taking the time to assess what is important to you, you can make better decisions when refining your filter for different income properties that you search for.

Joe Arias

Joe Arias and his partners have flipped hundreds of properties in the Southern California Region. He has developed cutting-edge systems to simplify and scale the entire remodel process that can easily be applied to flipping, rentals, wholesaling, and other passive income strategies. More recently, Joe founded a real estate investing education company called RealSuccess Investments, allowing him to share his tools and systems with hundreds of up-and-coming investors. 

RealSuccess is focused on education on flipping, rentals, passive income, and wholesaling.

Joe is also a best-selling author. He has written 4 books: Finding your RealSuccess, First Steps to Flipping, R stands for Rentals and Retirement, and Wholesaling Real Estate.

“I came from Argentina when I was 20, I am 40 years old now. I didn’t know anyone, I am CERO generation, usually people say, I am first or second generation but I was the one that crossed the border, no language, no friends, no family, no money, nothing, nada… If I can do it, anyone can.”

From a young latino immigrant  to a celebrated real estate investor, Joe is a true testament to hard work and discipline. As an investor, he has made it his mission to help others achieve financial freedom while enjoying living a life of passion, fulfillment, and empowerment.

RealSuccess Website

www.ourrealsuccess.com

Personal Instagram: 

https://www.instagram.com/joeariasinvestor/

Real Estate Investment- Instagram: 

Instagram: https://www.instagram.com/realsuccesseducation/

Video For Finding Money from All Day Training (10 Hour Seminar)

https://vimeo.com/manage/videos/528446162

1 Hour Webinar

https://vimeo.com/manage/videos/530996751

Amazon Book#1:

Amazon Book#2

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.

Using Skip Tracing as a Real Estate Investor

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By Joe Arias

As a real estate investor, especially a wholesale real estate investor, distress or abandoned properties are often the best homes to find under market value. Many of these homes, though, have owners who skipped town and are now just about impossible to find. Luckily, there’s a method for finding these homeowners called skip tracing. You can easily track down someone who has skipped town with no forwarding information through skip tracing as a real estate investor. Skip tracing will allow you to find the homeowner and move forward with a deal to purchase the property you’re after.

Quite a lot goes into skip tracing that you wouldn’t normally expect from real estate investors. You may have to do a little bit of digging to find the homeowner of the property you are looking to buy. Luckily there are tons of tools you can use to find someone who left absolutely zero breadcrumbs. Not only can you utilize search engines, but tons of websites have databases you can look through to find your person.

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What is Skip Tracing?

Essentially, skip tracing is the process of finding someone who has skipped town with little to no warning. They did not tell anyone where they were going and left no information on how to reach them. Despite this person leaving no trail, skip tracing is the process of searching for them or their contact information. To do this, one might hire a professional skip tracer or use their own savvy to try and locate them. There are quite a few tricks you can do on your own to find out where a person has gone even though they have not left any information. Many people utilize Google, social media, the post office, and other assets to find someone. This is considered skip tracing.

What are Skip Tracers?

There are professionals who are often private investigators, and they specialize in helping you find the owners of the properties who are incredibly hard to find. Many real estate investors hire the help of skip tracers to find the owners of properties they are interested in buying. These skip tracers typically start looking for a person by looking through public resources like utility bills, job applications, credit reports, DMV records, public property records, loan applications, background checks, and court records. They also carry out in-depth searches through multiple online databases that contain information not available to the public.

Although skip tracing costs money, it can be a huge benefit to any new or experienced real estate investor. Not many other real estate investors take the time or spend the money to hire skip tracers to find abandoned property owners. So, if there is a property owner who is extremely hard to find, you’re likely going to get to them first and have a better shot at buying the property. With competition for standard properties being high, using the method of skip tracing to beat competitors to vacant properties can be a massive advantage as you look to increase your portfolio and really start growing your wealth.

Why Do Investors Use Skip Tracing for Real Estate

As previously mentioned, abandoned homes can be really great for investors. The two investors who likely have the most interest in these homes are real estate wholesalers and real estate flippers. A wholesaler will offer the homebuyer an agreed-upon amount for the home, then they will find an interested buyer, likely another real estate investor, and connect the two. They will then make a profit based on a percentage of the final sale. While wholesalers are always on the lookout for houses that are under market value, it can be hard to get them against so much competition. When someone disappears and is hard to find, they significantly cut down the competition. Now, all the wholesaler has to do is find the homeowner and convince them to sell, and they have a profitable venture. Similarly, flippers are looking to buy homes like these because they have great potential to be repaired and sold for a large profit margin. Since all of the real estate flippers are after the same homes, finding properties like these can actually be a big break for some investors.

Is Skip Tracing Legal?

If you go through a professional skip tracer, the process is legal. Most states require skip tracers to be employed as independent private investigators who have a license with skip tracing certification options. States also have laws that dictate how you can use the information you got from skip tracing, which your skip tracer should expand upon based on your state. Make sure to only ever use a skip tracer who operates under all rules and regulations.

How to Use Skip Tracing for Real Estate

Skip tracing can actually be a very easy yet effective strategy to find property owners who have properties that are under market value. Essentially, you want to be able to find an alternate address for vacant property owners who are hard to find. From there, you’ll be able to contact them and see if they are willing to make a deal with you. Most people who have abandoned their properties are willing to accept fairly reasonable offers.

The hard part is that these property owners rarely leave details behind of their new address and contact information, so it’s almost impossible to find them once they’ve left. That’s why so many real estate investors either try their own hand in skip tracing or hire a professional.

One trick that many real estate investors try is using the United States Postal Service to get the property owner’s new address. What you do not want to do is walk into the post office and ask for their information. The post office is not obligated to provide you with their forwarding address. They are only allowed to give that information to law enforcement, licensed private investigators, or any other entity under court orders. So how do you get around this? All you have to do is send a letter addressed to the property owner at the address you wish to buy. Mail them a letter and on it, write “Do Not Forward – Return Service Requested.” Now that you wrote this, the post office will not be able to forward your letter to their new address and will have to return it to you. If they set up mail forwarding, you’re in luck! The letter will come back with a sticker on it detailing their new address. If it comes back with no address, that’s when you will have to look into skip tracing to find them.

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What to Try Before Hiring a Skip Tracer

If the post office trick didn’t work, your next step should be to use all of your resources before hiring and paying for a skip tracing service. Depending on what you need from the person, you may be able to do your own version of skip tracing and get what you need. For just an address or phone number, the internet may be your best tool.

Often information about someone can be found through a Google search, social media, or through the county assessor’s database. Many people even have their phone numbers linked to their Facebook profile without even knowing it. If they are the owner of a page or group, go into the info section and see if it has a contact email or phone number. Using social media, you may be able to look through their photos or connections’ photos and find out their new location. From there, do a Google search for their name and location and see if you can get an address or phone number. You may even be able to find them through a people search or a phone directory.

The following are a list of sites you can try to track down the property owner:

  • FindPeopleSearch.com
  • Pipl.com
  • TruePeopleSearch.com
  • PeopleSmart.com
  • PeekYou.com
  • YellowPages.com
  • AnyWho.com
  • TLO
  • Spokeo
  • Accurint

If you call a number and it’s not them, see if they have any connection to the person you’re looking for. You never know; sometimes, a dead end is just a redirection.

Hiring Skip Tracing for Real Estate Investments

Once you have exhausted your search to find the new address or phone number of the property owner on your own, you will have to look into skip tracing services.

Luckily there are plenty of skip tracing services to choose from. Speak with some of your real estate connections and see if anyone has had a good experience with a specific skip tracer. If you are unable to find a referral, do your own research. Read the reviews and make sure they look legitimate. Do not, no matter the price, hire a skip tracer who does not act ethically. It doesn’t matter how great the potential property investment is. It’s not worth breaking the law or involving yourself in sketchy practices.

Generally, skip tracing is not a very expensive service. Using a licensed investigator with skip tracing certification will only cost you around $25 per hour for their services. You could hire an unlicensed skip tracer for around $18 per hour, but it’s not worth the risk over such a small price difference.

What to Do If You Don’t Find the Owner

If you’ve exhausted all of your resources and you cannot find the owner of the property that you want to buy, just put this effort on pause. Move on to other projects and start looking for other properties that you find to be good investments. Add this property and any evidence you found into a spreadsheet where you can keep all skip tracing leads. After a few months, revisit your sheet and do a quick search on a few of the tools provided in this article. While there may not have been any information on the homeowner a few months ago, they may have down something to now appear in a search. Continue to do this every few months until either the property is sold, too run down, or you’ve moved on to different business ventures.

Summary

Skip tracing real estate is not for everyone. If you are a real estate investor looking to get into property management, you likely do not need to waste your time tracking down owners of abandoned homes. On the other hand, if you are someone who is just starting out in real estate, this might be a good thing to try. It could get you a step ahead of your competition, and you may be able to strike a really good deal with the homeowner, as they will likely be motivated to buy. If you are in the business of wholesaling or flipping homes, skip tracing is also something you may want to consider for your business. While it’s a lot more effort than other methods, it has a potentially great payoff if you succeed.

Joe Arias and his partners have flipped hundreds of properties in the Southern California Region. He has developed cutting-edge systems to simplify and scale the entire remodel process that can easily be applied to flipping, rentals, wholesaling, and other passive income strategies. More recently, Joe founded a real estate investing education company called RealSuccess Investments, allowing him to share his tools and systems with hundreds of up-and-coming investors. 

RealSuccess is focused on education on flipping, rentals, passive income, and wholesaling.

Joe is also a best-selling author. He has written 4 books: Finding your RealSuccess, First Steps to Flipping, R stands for Rentals and Retirement, and Wholesaling Real Estate.

“I came from Argentina when I was 20, I am 40 years old now. I didn’t know anyone, I am CERO generation, usually people say, I am first or second generation but I was the one that crossed the border, no language, no friends, no family, no money, nothing, nada… If I can do it, anyone can.”

From a young latino immigrant  to a celebrated real estate investor, Joe is a true testament to hard work and discipline. As an investor, he has made it his mission to help others achieve financial freedom while enjoying living a life of passion, fulfillment, and empowerment.

RealSuccess Website

www.ourrealsuccess.com

Personal Instagram: 

https://www.instagram.com/joeariasinvestor/

Real Estate Investment- Instagram: 

Instagram: https://www.instagram.com/realsuccesseducation/

Video For Finding Money from All Day Training (10 Hour Seminar)

https://vimeo.com/manage/videos/528446162

1 Hour Webinar

https://vimeo.com/manage/videos/530996751

Amazon Book#1:

Amazon Book#2

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.

5th Annual Los Angeles Real Estate GRAND Expo

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We are very excited to announce our 5th Annual Los Angeles Real Estate GRAND Expo. The GRAND Expo returns on Saturday, October 26, 2024, 9:00 am to 6:00 pm. We’re taking over the entire Iman Cultural Center for the day.

Last year, the GRAND Expo was the largest real estate event in Southern California! We had over 800 investors, 64 vendors, and 12 national speakers. This year will be even LARGER! An entire day celebrating real estate investing and you can be involved. Best of all, the GRAND Expo will be FREE to attend. This Expo is going to be grand, really GRAND!

SPEAKERS. There will be national guest speakers (in three breakout rooms). Here is a partial list of speakers:

1. Jonah Dew – “The Money Multiplier”
2. Eddie Speed – “Buying Discounted notes”
3. Steve Matley – “Syndication”
4. Joe Arias – “How to Get Started Investing”
5. Christopher Meza – “Developing Raw Land”
6. Tony Watson – “Tax Advantages for R.E. Investors”
7. Lauren Wells – “Passive Income Strategies”
8. Marco Kozlowski – “How to Buy Lots and Lots of Houses”
9. Amanda Brown – “Invest in Commercial Real Estate”
10. Ken Letourneau – “Tax Sales Master”
11. Arturo Olivas – “Create More Deals”
12. Steve Matley – “Do More Deals Bringing Partners together”
13. Tim Edenfield – “Top 5 Secrets to Out Of State Investing”
13. Rick Sharga (Keynote) – Real Estate Economist

INVESTMENT EDUCATION. Just think of it! An all-day in-depth educational extravaganza celebrating real estate investing. Most importantly, this will NOT be a sales pitch. Each of the speakers have contractually agreed to educate and teach us successful real estate investing strategies. So regardless of whether you are a new investor, already own properties, or are very experienced, our Grand Expo is for you.

COMPLIMENTARY PRIVATE CONSULTATIONS. As a special unique feature of our Grand Expo, you can sign-up for private half-hour consultations with your favorite guest speakers. Registration will occur Saturday morning, starting promptly at 8:00 am. First come – first serve. So come early and schedule your private consultations. A once in a lifetime opportunity to get free advice from national real estate experts!

VENDOR EXPO: Don’t miss our “Vendor Expo,” which will occur throughout the day in the North Hall. We’ll have 70+ vendors where you can “meet and greet” real estate professionals with services and products that you’ll want to utilize in your real estate investing. (If you have a product or service that would be valuable to real estate investors and would like to be a vendor, please contact us directly.)

FOOD TRUCKS. What would a Grand Expo be without food trucks? A day full of workshops, vendors, networking, and real estate investments demands sustenance, and we’ve got you covered. We’ll have 3-4 international food trucks in our central courtyard, plus a coffee wagon (for caffeine injections throughout the day).

DATE: Saturday, October 26, 2024, 9:00 am to 6:00 pm.

LOCATION: Iman Cultural Center, 3376 Motor Avenue (between Palms and National), Los Angeles, 90034.

FREE PARKING: Street parking (free and metered). There are also two FREE parking structures just two blocks away. The first structure is at the northeast corner of Motor and Palms. The second structure is at the northeast corner of Motor and National. From either parking lot it’s short two block walk to the Iman. Valet parking ($15) will also be available.

FREE ADMISSION: Admission to our Grand Expo will be COMPLIMENTARY (free!), but reservations are recommended.

PRODUCERS. The Grand Expo is joint presentation of the Los Angeles County Real Estate Investors Association, Sam’s Real Estate Club, Realty411.com, Women’s Real Estate Network (“WREN”), REI Wealth, and Greater LA-REIA.

How Much Should I Charge For Rent On My Income Property?

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By Joe Arias

Becoming a real estate investor gives a person the fantastic opportunity to generate passive income, but if you want to be successful, you need to have a strategy. According to HUD, there are between 10 million and 11 million individual investor landlords managing an average of two units each in the United States. While it may be somewhat easy to become a landlord, it is challenging to be a successful landlord who brings in a profit each month.

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Being a landlord should be treated like being a business owner and should include a business plan. Your income property business plan should include things like financing options, marketing strategies, budgeting for maintenance and repairs, and your long-term goals. It should also include identifying your ideal tenant but be wary of fair housing laws. When determining who you would like to rent to helps you narrow down the type of amenities your property should have. Prospective tenants may demand specific amenities like a pet-friendly rental with a yard or that the unit is within close proximity to public transportation and schools. These amenities may call for higher rental rates but could also come with their own headaches and affect your return on investment.

Residential Properties

Single-family home or townhome, condo, or manufactured, pricing strategies are pretty much the same. Many landlords use the 1% rule. This rule suggests charging 1% of the home’s value for rent. In reality, it is not that simple and there are other factors to consider.

Where Should I Start?

Whether you are getting ready to purchase an investment property or preparing to put it on the rental market due to tenant turnover, when deciding how much to charge for monthly rent you need to figure out a rental price that is high enough to cover your mortgage and operating expenses while ultimately giving you extra cash each month. But, you can’t just set a rental rate based on how much profit you’d like to make on your rental property. Unfortunately, it doesn’t work that way. Many factors go into determining how much to charge for rent. Let’s discuss them.

First, let’s talk about market rent. Market rent refers to the average rent price for a rental property and is determined by the real estate market value. When you get ready to list your property for rent, it is essential to see what your competition, other landlords, are charging for their rates. Some factors which affect the amount you can charge in rent are:

  • Square footage
  • Number of bedrooms
  • Number of bathrooms
  • Garage or covered parking spaces
  • Pet policies
  • Property type (single-family home, condo, etc.)

It is a good idea to research property values in the area where your property is located. This part of the process should be pretty simple. You can either look at one of the many online home search websites to do your research or ask your real estate agent to give you access to an online portal through your local MLS. Either way, you will be able to see what is available in your area filtered out by the homes that have similar features.

Depending on the type of property you have purchased, there may not be an identical comp to base your price on. One way around that is to look at the price per square foot in your neighborhood in properties as similar as you can find. Even if your property is 1200 square feet and the house down the street that just got rented out is 1600 square feet, you can still look at that number to help you determine your rate. So if the 1600 square foot house rented for $2,000 per month, that would make the price per square foot $1.25. You could then base your price on that number by multiplying $1.25 by 1200.

Rental Property Expenses

As we discussed, you cannot just set a rental price based on how much money you need to make in order to cover expenses and generate a profit. At the same time, you need to be aware of your costs so that you can set the price high enough to make a profit. When determining how much you will need to charge for rent each month, there are some additional, not so fun considerations to take into account.

These include:

  • Mortgage payments
  • Property taxes
  • Insurance
  • HOA fees
  • Property management fees
  • Maintenance fees
  • Rental income taxes
  • Utilities

Each of these items are additional expenses that you will have to cover and can vary by city or even neighborhood you purchase in. These fees are typically the same year-round, so it is somewhat easy to put them into your plan when working to determine the monthly rental rate.

Commercial Properties

The process of arriving at a rental rate on your commercial property is similar to that of a residential home.

You will need to look at similar properties to what they are renting for, just like you would with a residential property. In general, you would look at the property’s size, location, and number and type of tenants that the property currently has. In addition to these somewhat basic factors, you also need to consider the following:

Charging by usable square footage: This is the amount of space that the tenant uses alone, not including common areas that any tenant can use. So in an office building, it would be the actual office space versus the building’s lobby.

Leases are much more complicated: There are multiple ways to enter into a commercial agreement lease, here are three primary lease structures:

  • Triple Net – Tenants pay their base rent plus taxes and insurance on the building. These are the most common types of leases.
  • Full-Service Gross – Tenants pay the landlord on fee, and the landlord is then responsible for all other expenses like taxes, insurance, maintenance, and utilities. These types of leases are common in office properties.
  • Modified Gross – Landlords pass on some but not all of the cost of utilities, maintenance, janitorial, etc.

As the landlord, you will have to figure out much to charge for base rent and calculate how much the additional expenses will be. You still want your lease price to be attractive to potential tenants and competitive against other property managers.

Something else to consider is that commercial leases tend to last for more extended periods of time. Typically the lease period can be three to five years, so it is imperative to choose an amount that will hold up to that longevity.

Unless you are a seasoned investor, it may be wise to work with a property manager to help you with the day to day dealings. They can even help you determine how much to charge in rent.

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There is So Much to Consider, and I’m Overwhelmed

Looking at all of these factors is overwhelming. Rental rates can change by the week, and doing all of this research only to find that prices have increased or decreased before you can get the property listed can be discouraging. It is essential to understand why prices change so quickly. Like any other product on the market, supply and demand is always a factor in how much something costs.

Some landlords may choose supply and demand as the only factor in determining a rental rate. Others may place their rates somewhere in between the neighborhood market rate and HUD’s fair housing rate. Whatever strategy you choose, make sure your property stacks up to other properties in the area and you should be okay.

Final Thoughts

Pricing your investment property, be it residential or commercial, is one of the most important factors in being a successful investor. If you do not charge enough to cover all of your expenses, you will lose money making your investment a bust. Very simply, look at the current market rates based upon the size and condition of your property in order to determine how much to charge for rent.

Joe Arias

Joe Arias and his partners have flipped hundreds of properties in the Southern California Region. He has developed cutting-edge systems to simplify and scale the entire remodel process that can easily be applied to flipping, rentals, wholesaling, and other passive income strategies. More recently, Joe founded a real estate investing education company called RealSuccess Investments, allowing him to share his tools and systems with hundreds of up-and-coming investors. 

RealSuccess is focused on education on flipping, rentals, passive income, and wholesaling.

Joe is also a best-selling author. He has written 4 books: Finding your RealSuccess, First Steps to Flipping, R stands for Rentals and Retirement, and Wholesaling Real Estate.

“I came from Argentina when I was 20, I am 40 years old now. I didn’t know anyone, I am CERO generation, usually people say, I am first or second generation but I was the one that crossed the border, no language, no friends, no family, no money, nothing, nada… If I can do it, anyone can.”

From a young latino immigrant  to a celebrated real estate investor, Joe is a true testament to hard work and discipline. As an investor, he has made it his mission to help others achieve financial freedom while enjoying living a life of passion, fulfillment, and empowerment.

RealSuccess Website

www.ourrealsuccess.com

Personal Instagram: 

https://www.instagram.com/joeariasinvestor/

Real Estate Investment- Instagram: 

Instagram: https://www.instagram.com/realsuccesseducation/

Video For Finding Money from All Day Training (10 Hour Seminar)

https://vimeo.com/manage/videos/528446162

1 Hour Webinar

https://vimeo.com/manage/videos/530996751

Amazon Book#1:

Amazon Book#2

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.

Best Selling Home Plan

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By Joe Arias

At this very moment, home is not just a place to live or a shelter from harsh weather. Home also reflects the personality of the people living there. Nevertheless, home has now become an investment that a person can have. Lots of people invest their money in the form of their own home. And they invest a huge amount of money in it.

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Before we come to how to sell your home plan, let us talk about the home plan itself. A home plan is what people need to build their homes. Home plans can seem like a complicated thing because you have to consider a lot of factors and try to sort them one-by-one and listing which things need to be put into your home plan. You have a lot of things that you want them to be as a part of your home plan. However, you have to be very careful in selecting the right composition of your home plan to be a very lovely home.

You can also try to list the pluses or minuses of your old home and you can also ask some friends suggestions to make a perfect and beautiful home plan. Make a home plan that is attractive to the homebuyers. Put something different that you think has never been made into your home plan such as an energy-wise design. You also have to consider the size of the house, if it’s going to be a one-story or two-story home, how many rooms there are, how many bathrooms, etc. After that, you can start to calculate the estimated price of your home, but this can be done later.

Besides that, you also have to consider the home’s location that you plan to build your home. Create a home that “fits in” with its surrounding environment. Never make a home plan that is not suitable for the surroundings; it would make the homebuyers hesitate to buy your home plan.

Nowadays, it can be easier to make a home plan because there are lots of tools that make a home plan an easy task. On the Internet, we can also find lots of interesting home plans and get some ideas from there and know which kind of house that most people want to have as their home plan. You can also put your home plans there. This is the easiest and fastest way to sell your home plan.

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As we see now, some people invest their money in their home. Other people will give away a lot of money just to have the right home plan that suits his or her desires. Now it is your turn to be a home planner and make the very best purchase from your home plans.

Joe Arias and his partners have flipped hundreds of properties in the Southern California Region. He has developed cutting-edge systems to simplify and scale the entire remodel process that can easily be applied to flipping, rentals, wholesaling, and other passive income strategies. More recently, Joe founded a real estate investing education company called RealSuccess Investments, allowing him to share his tools and systems with hundreds of up-and-coming investors. 

RealSuccess is focused on education on flipping, rentals, passive income, and wholesaling.

Joe is also a best-selling author. He has written 4 books: Finding your RealSuccess, First Steps to Flipping, R stands for Rentals and Retirement, and Wholesaling Real Estate.

“I came from Argentina when I was 20, I am 40 years old now. I didn’t know anyone, I am CERO generation, usually people say, I am first or second generation but I was the one that crossed the border, no language, no friends, no family, no money, nothing, nada… If I can do it, anyone can.”

From a young latino immigrant  to a celebrated real estate investor, Joe is a true testament to hard work and discipline. As an investor, he has made it his mission to help others achieve financial freedom while enjoying living a life of passion, fulfillment, and empowerment.

RealSuccess Website

www.ourrealsuccess.com

Personal Instagram: 

https://www.instagram.com/joeariasinvestor/

Real Estate Investment- Instagram: 

Instagram: https://www.instagram.com/realsuccesseducation/

Video For Finding Money from All Day Training (10 Hour Seminar)

https://vimeo.com/manage/videos/528446162

1 Hour Webinar

https://vimeo.com/manage/videos/530996751

Amazon Book#1:

Amazon Book#2

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.

Oregon Investors: Join Our FREE 2-Hour In Person Event Near You!

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Please review this post from our sponsor, thank you.

Hello Realty411 Investor,

Are you ready to take control of your financial future? Whether you want to create an additional source of income or build something that will help you leave a legacy of wealth… this no-charge event will show you how Real Estate Investing can help you get there.

My friend, Joe Arias, with RealSuccess is sending his team to train you and a guest LIVE and in-person right near Portland, Oregon — and all you have to do is claim your seat to take advantage of it.

During this 2-hour class, you’ll discover…

  • How you can start thinking like a successful investor right from the start – so you can start networking and building your team right away…
  • Diverse investment strategies that can help you get started wherever you want and build your portfolio no matter what the world throws at you…
  • The insider secrets to finding profitable deals anywhere… from your own back yard to clear across the country…
  • The art (and science!) of profitable numbers… and how you can calculate them the RIGHT way to make sure every deal has good potential…
  • Innovative funding strategies that will help you STOP feeling trapped by cash flow and start using resources to help you scale faster…
  • And much, much more!

All with real-world examples and Q&A so you feel confident and ready to grow your real estate investing business!

PLUS when you attend, you’ll receive three bonus gifts:

Bonus Gift #1. Off Market Deals: This top secret manual shows you how you can beat everyone else to the most profitable off market deals.

Bonus Gift #2: Deal Analyzer Tool: This is the tool Joe and his team use to analyze every deal and check profit potential… imagine how confident you’ll feel having this on your side!

Bonus Gift #3: Deal Funding Rolodex: Because funding shouldn’t hold you back, Joe will give you his personal list of lenders and investors that you can use to fund your next deal.

I know Joe and his team have dedicated their time and energy to developing tools and systems that are proven to guide you on a successful path to real estate investing… and all you have to do to access it is click the button below and register for your 2 free tickets.

Don’t miss this opportunity to get potentially life-changing insights from one of the top real estate investors I know.

Linda @ Realty411 Team

P.S. Whether you’re brand-new to the real estate game or you’ve already invested before… this class is for you. The strategies you’ll discover can help you level up faster and drive more success than you might be able to achieve on your own.

Don’t miss your chance – save your free seat!

Since 2007, Realty411.com has assisted top companies expand their visibility and grow their business. Contact us for a complimentary marketing session. Investors, do you have questions about real estate investing? Are you looking for a turnkey rental? Need a solid REI referral?
Book a meeting with a Realty411 team member: CLICK HERE.

Licensed Agent in California
DRE #01355569
The REAL Brokerage
DRE #02022092

Unlock Your Path to Real Estate Success – Join Our FREE 2-Hour In Person Event!

/in , , , , , , , /by

Please review this post from our sponsor, thank you.

Hi Realty411 Investor,

Are you ready to take control of your financial future? Whether you want to create an additional source of income or build something that will help you leave a legacy of wealth… this no-charge event will show you how Real Estate Investing can help you get there.

My friend Joe Arias with RealSuccess is sending his team to train you and a guest LIVE and in-person right near Detroit, Michigan — and all you have to do is claim your seat to take advantage of it.

During this 2-hour class, you’ll discover…

  • How you can start thinking like a successful investor right from the start – so you can start networking and building your team right away…
  • Diverse investment strategies that can help you get started wherever you want and build your portfolio no matter what the world throws at you…
  • The insider secrets to finding profitable deals anywhere…from your own back yard to clear across the country…
  • The art (and science!) of profitable numbers…and how you can calculate them the RIGHT way to make sure every deal has good potential…
  • Innovative funding strategies that will help you STOP feeling trapped by cash flow and start using resources to help you scale faster…
  • And much, much more!

All with real-world examples and Q&A so you feel confident and ready to grow your real estate investing business!

PLUS when you attend, you’ll receive three bonus gifts:

Bonus Gift #1. Off Market Deals:

This top secret manual shows you how you can beat everyone else to the most profitable off market deals.

Bonus Gift #2: Deal Analyzer Tool:

This is the tool Joe and his team use to analyze every deal and check profit potential… imagine how confident you’ll feel having this on your side!

Bonus Gift #3: Deal Funding Rolodex:

Because funding shouldn’t hold you back, Joe will give you his personal list of lenders and investors that you can use to fund your next deal.

I know Joe and his team have dedicated their time and energy to developing tools and systems that are proven to guide you on a successful path to real estate investing… and all you have to do to access it is click the button below and register for your 2 free tickets.

Don’t miss this opportunity to get potentially life-changing insights from one of the top real estate investors I know.

Linda @ Realty411 Team

P.S. Whether you’re brand-new to the real estate game or you’ve already invested before… this class is for you. The strategies you’ll discover can help you level up faster and drive more success than you might be able to achieve on your own.

Don’t miss your chance – save your free seat!

Since 2007, Realty411.com has assisted top companies expand their visibility and grow their business. Contact us for a complimentary marketing session. Investors, do you have questions about real estate investing? Are you looking for a turnkey rental? Need a solid REI referral?
Book a meeting with a Realty411 team member: CLICK HERE.

Licensed Agent in California
DRE #01355569
The REAL Brokerage
DRE #02022092

CREDIBILITY: ONE OF THE MOST OVERLOOKED ITEMS IN REAL ESTATE

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By 

Building credibility takes years of work but can easily be lost all in a single moment. In real estate, professionals and investors often find success through their networks. Having connections with the right people and having an equally good reputation encourages others to want to do business with you. Whether you are an agent, mortgage broker, investor, or even just a regular buyer, credibility is a critical backbone of your potential success and is oftentimes overlooked.

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In all aspects of life, nobody wants to associate or do business with someone that is not credible. That is why it is most important to maintain a positive reputation and image especially in real estate. The better credibility you have, the more people will want to work with you. There are certain ways you can show credibility with your network or clients in real estate.

Certifications or Credentials

If you are a real estate professional, a certification/credential will demonstrate that you went through the proper channels to earn an education in the field that you are involved in. It demonstrates that you have the know-how and knowledge to properly guide your clients in the right direction. In addition, it can provide additional peace of mind for buyers as they know they are dealing with a highly educated and certified professional.

Maintain A Positive Track Record

For both real estate professionals and investors, showing a consistent and positive track record demonstrates that you have a track record for success and have proven credibility that you know what you are doing. This is important whether a real estate professional is working with clients and can provide referrals/history of past transactions or even for investors who need to raise money and demonstrate that they have a history of securing good deals that benefit all involved.

Stay Honest and Trustworthy

Nothing can destroy credibility more than dishonesty and breaking trust. It can take years to build credibility, but it can come crashing down with one poor judgment call. This is not a difficult competency to follow. Stay true to yourself, your clients, and your partners and you are guaranteed to maintain a strong credibility. You want to be the person that everyone can count on. It’s a simple best practice that pays dividends towards your network and your overall business.

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Leverage Social Media

Your social media pages can be your biggest asset or your worst enemy. These days, anything on the internet can be found. If you are operating in real estate, you’ll want to update your social media to look professional and presentable across all platforms. Anyone you are looking to do business with can simply google your name and all your social media pages come up. Depending how you utilize this asset, it can either help boost your credibility or hurt you in the long run.

Overall, credibility is important in real estate and without it, you’ll find yourself having a harder time closing deals and generating success. By following these simple best practices on establishing credibility, you too can improve your real estate network and success.

Joe Arias and his partners have flipped hundreds of properties in the Southern California Region. He has developed cutting-edge systems to simplify and scale the entire remodel process that can easily be applied to flipping, rentals, wholesaling, and other passive income strategies. More recently, Joe founded a real estate investing education company called RealSuccess Investments, allowing him to share his tools and systems with hundreds of up-and-coming investors. 

RealSuccess is focused on education on flipping, rentals, passive income, and wholesaling.

Joe is also a best-selling author. He has written 4 books: Finding your RealSuccess, First Steps to Flipping, R stands for Rentals and Retirement, and Wholesaling Real Estate.

“I came from Argentina when I was 20, I am 40 years old now. I didn’t know anyone, I am CERO generation, usually people say, I am first or second generation but I was the one that crossed the border, no language, no friends, no family, no money, nothing, nada… If I can do it, anyone can.”

From a young latino immigrant  to a celebrated real estate investor, Joe is a true testament to hard work and discipline. As an investor, he has made it his mission to help others achieve financial freedom while enjoying living a life of passion, fulfillment, and empowerment.

RealSuccess Website

www.ourrealsuccess.com

Personal Instagram: 

https://www.instagram.com/joeariasinvestor/

Real Estate Investment- Instagram: 

Instagram: https://www.instagram.com/realsuccesseducation/

Video For Finding Money from All Day Training (10 Hour Seminar)

https://vimeo.com/manage/videos/528446162

1 Hour Webinar

https://vimeo.com/manage/videos/530996751

Amazon Book#1:

Amazon Book#2

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.