Posts

Breaking Into the Commercial Real Estate Industry

/in , /by

By Vista Capital Solutions

Finding the right place to invest your money is often more challenging of an experience than many people realize. There are risks involved in any investment scenario and it can be difficult to figure out which options are going to yield the biggest results. Though far from a sure thing, commercial real estate is definitely one of the more lucrative areas when it comes to investments. If you think this path might be the perfect fit for your journey, take a moment to review the basics and get a better feel for what to expect.

ADVERTISEMENT

Why CRE?

The first question many investors have when presented with commercial property options is why this choice is better than residential real estate. This is especially true in recent years, when the fix-and-flip model has offered first-time investors amazing opportunities. Though advantageous, residential properties are still very limiting in what they can offer an investor. With commercial options, an investor is given an opportunity to see a much bigger return and turn a single piece of property into several recurring points of income.

What Are the CRE Property Types?

The main reason commercial real estate is more appealing than residential options is because it can be used in several different ways. The four main categories of CRE include retail, multi-family housing, office, and industrial. Depending on the location of the property itself, you might want to explore any one of these options. Each choice can produce a number of benefits and challenges, so it is wise to think through the pros and cons before making any final decisions. The main goal is to find a property with several units that can be rented out separately.

ADVERTISEMENT

What Are the Key Benefits of CRE?

Investing in commercial properties is advantageous because it allows the investor a chance to see income that lasts for a long while. Residential properties are only designated to be used by one renter at a time. With a commercial property, you can rent each unit out to a different person or group. This creates a number of points of cash flow that you can rely on each month. Many investors use the funds created by these properties to fund future investments and grow their empires. All it takes to get started is some dedicated research.

Finding the perfect piece of commercial real estate takes time and effort. As long as you understand the basics of CRE investments, you will be able to commit to the search and see the best possible results. Vista Capital Solutions offers an array of CRE funding solutions for all types of commercial property transactions and projects, nationwide. Reach out to our offices today to explore your options.

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.

10 Growing Real Estate Markets to Explore

/in , /by

By Stephanie Mojica

Housing prices have skyrocketed throughout the United States, leaving budget-conscious buyers scratching their heads trying to find an affordable home in an area with plenty of work, educational, and recreational opportunities. The good news is that dream isn’t a lost cause. REALTOR.com recently released a list of 10 up-and-coming real estate markets.

ADVERTISEMENT

1. Johnson City, TN

This Tennessee city of about 200,000 people is near the Appalachian Mountains. The average home price of $379,000 is about 10% less than the national average of $427,250 (as of September 2022).

2. Visalia, CA

For California, this city’s median home price of $400,000 sounds almost too good to be true. Visalia is in the San Joaquin Valley, about 40 miles from Fresno.

3. Elkhart, IN

This city’s average home price of $257,000 is roughly 60% of the national average. Elkhart is 15 miles from South Bend, 110 miles from Chicago, and 150 miles from Indianapolis.

4. North Port, FL

Florida is another traditionally expensive market, but this city of 75,000 isn’t one of them. The median home price of $548,000 is about 30% higher than the national average — but it’s Florida.

5. Fort Wayne, IN

Indiana strikes again with its budget-conscious homes and access to work, education, recreation, and travel. The average house price in this city of 265,000 is $300,000.

6. Lafayette, IN

This Hoosier State city of 225,000 has a median home price of $291,000 — roughly 70% of the national figure. Lafayette is about 60 miles from Indianapolis and 125 miles from Chicago.

7. Columbia, SC

For a capital city, an average home price of $309,000 is pretty darn good. The second-largest city in South Carolina, Columbia has a population of about 135,000.

ADVERTISEMENT

8. Columbia, MO

As a major Midwestern college town, Columbia has a lot to offer its 125,000 residents. The median home price of $347,000 is 20% lower than the national average.

9. Raleigh, NC

Another southeastern state capital made this list, and Raleigh is undeniably one of the best cities in this part of the country. The average cost of a home in this city of 475,000 is $463,000.

10. Yuma, AZ

Another city west of the Mississippi made this list, with a median home price of $315,000. This city of about 75,000 is known for its sunny weather.

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.

How Short-Term Loans Help Companies Do More

/in , /by

By Vista Capital Solutions

Running a small business can be a rewarding opportunity, but it takes a lot of work. New business owners in the first few years of incorporation may find themselves in a tight spot from time to time. When you’re trying to bring in profit and business suddenly slows, it might be frustrating to find a solution. You still have to pay your employees and keep the electricity on even when no customers are coming through your door. Fortunately, there are some funding methods that help businesses get past tough times.

Ask a Bank

When you’re looking for a solution to get you past a dip in sales, asking a financial professional about short-term loans is a good place to start. Instead of aiming for a large loan, think about getting just enough for your needs. Bankers can help people decide what kinds of financial products will work best for their exact problem. Tell your financial professional everything that you’re wanting to accomplish and in what time frame you must do this. You must demonstrate a purpose for the money before a bank will loan it to you.

ADVERTISEMENT

Consider Other Options

Before you sign on the dotted line with a lender, take the time to see what other options are available besides short-term loans. Ask your banker about different types of products and what their terms are. It’s a good idea to educate yourself on what’s out there so you know where you can turn in the future for other funding needs. Compare interest rates, payment terms, and approval requirements for other kinds of loans.

Make an Informed Decision

After you’ve consulted your financial professional and researched other available products, then it’s a good time to make your decision about applying for short-term loans. Some of these products may even be backed by the United States Small Business Administration. The SBA works with banks and other financial institutions to partially guarantee loans for small business owners. Because these products hold a little less risk for the lender, they are sometimes easier to qualify for. the SBA offers both long and short-term products that are designed to fit the needs of smaller enterprises. Choosing one of these kinds of loans may be more favorable.

ADVERTISEMENT

Once you’ve put in your time and research, you will find a good loan for your business. Staying informed about finance will help you make wiser decisions down the road.

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.

Don’t Quit Your Real Estate Investing Dream

/in /by

By Tamera Aragon

Today, I wanted to share one message – Don’t Quit! That’s it. Don’t Give up! Wherever you’re at, whatever you are doing, If you have a dream or a goal and a life that just might seem too hard today… I am writing to tell you – Don’t quit!

Please enjoy the five-minute excerpt from the movie, ‘Facing the Giants’, it’s a piece of inspiration for anyone that is in the real estate investing game.

ADVERTISEMENT

In this video, a football coach teaches a valuable lesson about the limits we place on ourselves. And how important it is for you to NEVER GIVE UP as others watch you, as a leader.

Have you ever felt…. “I’m successful at my day job, but I’m failing at my new venture…” Then you will want to learn this mindset reset tip offered by my friend Doug.

“Sam had always been pretty good at most things she attempted, she was also great at her job, so when she was introduced to a money making opportunity, she figured ‘why not?’”

After investing a lot of time and money, Sam still wasn’t seeing the rewards she felt she’d been promised by the promoter. She said she knew there were other people that were creating success following the same things she’d learned, so she’d concluded that she must not be cut out for it. “I’d better just quit, I’ll never get the hang of this, I’m a failure” she complained.

I invited her to consider shifting her perspective on the matter. “Rather than assuming you’re a failure, would it be more correct to say that you’re a person with many successes under your belt who hasn’t yet mastered this particular skill?” She hesitated, “uh, yeah I guess that’s right.”

I could see the gears turning, so I went on, “and what would happen if rather than assuming you’re failing at this new venture, you decided your results were just feedback telling you what changes you need to make.” “What do you mean?”, she asked.

ADVERTISEMENT

I went on, “have you ever slipped on an icy sidewalk before?” “Yes, I’ve done that” she said sheepishly. I continued, “So did you conclude you’d failed at walking and that because of that you yourself were a failure so you should just probably hang the towel up on everything?” “Of course not, that would be silly,” she laughed.

“When you’re right, you’re right,” I smiled. “Whether you realize it or not, you implemented the feedback you got from the ice. You thought, hey, there’s slippery ice on the sidewalk and adjusted how you walked. Perhaps you stepped more carefully. Maybe you grabbed some sand or salt and spread that over the ice. Maybe you got off the sidewalk and walked around the ice. The point is, you changed what you were doing and successfully got to where you were going.”

Armed with this new perspective, Sam proceeded to pay careful attention to what she was doing and tracked her results. She then considered what things she could adjust that would affect her outcome, and get her the result she wanted. By implementing one change at a time to and tracking her activities, eventually, she figured out what tweaks she needed to make to achieve her outcome.

Remember, there is no failure, there’s only feedback.” ~ Doug O

In closing, here are some powerful words from the man whose life displayed this “don’t quit” attitude wholeheartedly…. Winston Churchill left us with these words of wisdom:

“Never give in. Never give in. Never, never, never, never—in nothing, great or small, large or petty—never give in, except to convictions of honor and good sense. Never yield to force. Never yield to the apparently overwhelming might of the enemy.”

Be Inspired…..

Tamera Aragon

Tamera Aragon is a professional online entrepreneur and has bought and sold over 300 properties, establishing her as an expert in the real estate investing field. Since 2003, she has purchased over 10 million dollars in real estate and currently holds properties all over the world. Tamera’s focus is on the booming Foreclosure market, buying Pre-foreclosures, REOs and Short Sales. Tamera who is a noted Author, Success Trainer, Speaker & Coach, shows her passion for helping others with the 17 websites she has created and several specialized products to support fellow investors throughout the world. When Tamara is not busy running her website, she is very involved with her Fiji joint ventures and investments. Tamera Aragon is one of the few trainers and coaches who is really “doing it” successfully in today’s market. Tamera’s experience has earned her a solid reputation in the industry as well as the respect and friendship of many of the top national real estate investment and internet marketing experts. Tamera Aragon believes her success has garnered her the financial freedom to fully enjoy her marriage and spend quality time with her children.

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.

Own A Vacation Home That Pays You

/in /by

Please review this important message from our sponsor.

Own A Vacation Home That Pays You

With interest rates at historic levels and home prices through the roof, everyone in the real estate industry seems to be having the same issue: where do you find cash flow without taking a huge risk?

Our company, Cloud Castles, has helped some people solve this problem by offering low-risk ways to invest in fractional shares of Airbnbs without having to spend $100k+ to do so.

Not only that, but you don’t have to lift a finger to manage these properties, you can receive huge discounts whenever you want to stay, and we cover all losses — so you have true peace of mind.

If vacation home ownership interests you, we have limited availability in our Vegas, Tampa, and Orlando offerings (and thousands of others are reading this same post). Set up a call today before we sell out!

More than 700 Investors from Around the Nation, and World, United for the 3rd Annual LA GRAND Real Estate Expo

/in , , , , /by

By Lori Peebles

West Los Angeles — More than 700 investors from around the nation, and world, united for one day in Los Angeles at the IMAN Cultural Center to listen to the latest news in real estate investing on Saturday, October 22nd.

The 3rd Annual Los Angeles Grand Real Estate Expo offered a full day of complimentary education on a variety of real estate investing topics taught by some of nation’s top industry leaders. The expo was attended by investors from states across the nation, including Utah, Oklahoma, Illinois, Michigan, South Carolina, Pennsylvania, Connecticut, and more.

The GRAND Expo also once again attracted an international audience with guests flying in from Mexico, England and Poland just to attend the one-day educational event.

The day was buzzing with excitement as hundreds of investors rushed to secure a seat to hear their favorite educators. Three breakout sessions gave expo guests the option of learning about a variety of subjects throughout the day.

One of the top highlights of the expo was when Rick Sharga, Executive Vice President of ATTOM Data Solutions, took the floor and dived deep into inflation’s impact on the current real estate market.

Sharga also shared insight into his predictions of what to expect in the 2023. His presentation was standing room only while dozens of guests patiently stood by the entire hour to hear him speak.

ADVERTISEMENT

Other top educators for this year’s GRAND expo, included: Shawn Tiberio, Christopher Meza, Rusty Tweed, Tony Watson, Cliff Gager, Merrill Chandler, David Tedder, Paul Finck, Abbas Mohammed, Amanda Brown, Aneissa Goss, Joe Arias, and others.

More than 50 companies exhibited their products and services to the community, including Frontier Communications, Zoho, Lending One, New York Life Insurance Company, Klaviss, Zinc Financial, Western International Securitas, Fair Trade Real Estate, WRENN, San Diego Creative Investors Association, Retran, Alt Lender Mortgage, AV Fund Group, Prime Equity Mortgage, Landlord Advocates, Payne Pest, Real Success, Retran, Number One Accountancy, plus many other premiere companies.

The three-series GRAND expo has already reached nearly 3,000 investors in person and has united more California investors under one roof than any other REI event in the state.

The event is sponsored by Los Angeles County Real Estate Investors Association, Sam’s Real Estate Club of Los Angeles, the Ventura County Real Estate Investors Association, plus Realty411 and REI Wealth magazines.

The principals of each organization, Lloyd Segal, Sam Sadat and Linda Pliagas, have been friends for over 20 years and have collaborated on numerous smaller projects prior to the start of the LA GRAND Expo series.

Their goal is to increase the attendance of next year’s expo and expand its international presence as a flagship global real estate investor conference.

To learn about participating in next year’s LA GRAND Expo, visit: https://LAGrandExpo.com or call Realty411’s office at: 805.693.1497.

ADVERTISEMENT

Why 2022 is Still a Good Time to Invest in Real Estate

/in , /by

Despite Inflation, Despite Interest Rates, Despite a Recession

“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.”
—Warren Buffett

By Jeff Roth

Why to Not Worry About Inflation

Let’s take a look at inflation historically.

Yes the Consumer Price Index (CPI) is over 8%, and some say higher because they changed the way CPI is calculated over the years and does not include all items that may show inflation that consumers frequently need to buy.

However, real estate is one of the few assets that is performing well in this inflationary environment.

Values of properties have continued to go up higher than inflation. Buying investment real estate is using the power of inflation to your advantage because prices go higher with inflation because, sadly, the value of the dollar has gone down, and it takes more of those devalued dollars to buy the same house.

Even in 2022, prices are forecasted to go higher.

Rents have also increased greater than the rate of inflation in many places.

So, investing in real estate uses the power of inflation to your advantage.

What about high interest rates?

Why to Not Worry About Interest Rates

Yes, like inflation, interest rates are higher than we have seen in some time, and many would argue the rates were kept artificially low by the Federal Reserve.

So, historically speaking, how bad are interest rates?

Interest rates are elevated, but they still are not as high as they have been at some points in the nation’s history.

Also, if interest rates are lower than the rate of inflation (which they still are in many cases), then the effects of inflation mean you are paying back a long-term debt with dollars that are “worth less” over time because the value of the dollars you are paying the debt back with have been devalued.

Essentially, long-term debt, like mortgages, are an asset themselves in an inflationary environment.

Yet another reason to invest in 2022.

But what about a recession? Won’t that affect the housing market and real estate investments?

Why to Not Worry About a Recession

Home prices have gone up four of the last six recessions.
Part of the reason for this is the lack of housing supply to meet demand.

In fact, a recent study by Freddie Mac states there is a 3.8 million shortage of housing units to meet demand that would need to be built in the coming years in the U.S. https://www.yahoo.com/news/more-housing-coming-national-shortage-035900543.html

This new supply of housing units will need to be built while there is a shortage of skilled trade workers and lingering supply chain issues making material availability and costs unpredictable.

A good exercise, as an investor, is to ask where else can you invest your resources besides real estate and what returns you can expect.

ADVERTISEMENT

What Are The Investment Alternatives?

There are many alternatives to investing in real estate. Let’s see how they are performing.

Wage Growth- Surely, with all the job shortages reported, there has to be strong wage growth. Actually, according to the U.S. Bureau of Labor Statistics from Sept.13, 2022, real average hourly earnings are down 2.8%, seasonally-adjusted, from August 2021 to August 2022. Did you get a 9% pay increase this year to stay ahead of inflation? If so, you are doing better than most. https://www.bls.gov/news.release/realer.nr0.htm

Stock Market Performance- Year-to-date total returns for the S&P Index is down 17.12% according to MarketWatch. https://www.marketwatch.com/investing/index/spx

Bitcoin- Digital gold is down 57.76% year-to-date according to MarketWatch. https://www.marketwatch.com/investing/cryptocurrency/btcusd

Gold- The original safe haven investment is down 6.82% year-to-date according to MarketWatch. https://www.marketwatch.com/investing/future/gold

Small Business Performance- According to an article from April 2022 entitled “41 Small Business Statistics: Everyone Should Know,” only 40% of small businesses are profitable. https://www.smallbizgenius.net/by-the-numbers/small-business-statistics/#gref

So, if there really are no great alternatives to real estate investing in 2022 for the average investor, what is the cost for waiting and giving in to the media’s negative drumbeat about inflation, interest rates and a recession?

ADVERTISEMENT

What Are The Opportunity Costs For Waiting To Invest in Real Estate?

There are always costs for not making a decision or making a different decision with your resources.

Let’s take a look at the lost wealth over the next 5 years in lost equity if you wait or fail to invest in 2022.

According to Keeping Current Matters and the Home Price Expectation Survey, you would lose out on $102,787 from appreciation alone.

Additionally, you have three more opportunity costs for not investing in real estate in 2022:

1. Interest rates may very well continue to increase.

2. The money you have to invest will lose purchasing power from inflation.

3. The tax benefits from owning real estate will not be realized.

So, the question is, why wait?

Why Wait to Buy Real Estate?

Real estate appreciation and rent increases are greater than the rate of inflation.

Interest rates are still below the rate of inflation and below historical highs.

Home prices have gone up during four of the last six recessions.

All other investment alternatives are losing value in 2022 on average.

Waiting to invest will cost you future projected appreciation, interest rates may continue to increase, the money you have to invest will continue to lose purchasing power, and the tax benefits from owning real estate will not be realized.

Why wait to buy real estate?

To your success!

Jeff Roth
Contributor

Jeff is the founder of Arbor Advising. Arbor Advising is a consultancy based in Ann Arbor, Michigan that is passionate about helping people reach their financial goals with real estate and real estate investing in Michigan with an established record of success in various market conditions. Jeff believes in the value of education and is a contributor to many local and national real estate publications and organizations. Reach out for a confidential consultation to review your specific goals and objectives and join the many satisfied clients that work with Arbor Advising.

You can connect with him at:
www.arboradvising.com
[email protected]
https://twitter.com/ArborAdvising
https://www.facebook.com/profile.php?id=100083113851229
https://www.linkedin.com/company/arbor-advising/?viewAsMember=true
https://www.instagram.com/arboradvising/

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.

The Greatest Real Estate Investment

/in , /by

By Jimmy V. Reed

Your Local Real Estate Investment Club could make you RICH!

By Jimmy V. Reed

I want to make money in real estate, but “I just don’t know how.”  Let me tell you, I cannot count how many time in 20 plus years of investing I have heard that.  I would always respond every time the same way: have you been to your local real estate club?  And the answers would vary from; I didn’t know I had one, to yeah but all they ever want to do is sell me more training.

So first up; I didn’t know I had one.  Well let’s go back about 22 years ago as I sat in my first LIVE Real Estate training class.  Let me tell you I was pumped and ready to go make my first million.  But as the class came to an end my mind started to instill some fear tactics.  Now of course I was the one in control of these infiltrations to my mind, but what starts to happen after your weekend of pumped up steroid training is reality starts to set in.  You start to question what if I cannot find a deal, or any cash, or even a buyer?  What will I do?  Well on the last day of my training the company that was teaching us allowed the local Dallas Real Estate Club Aireo to come in and give out a free pass to their next meeting.  I knew then this was the blessing I was looking for.  They actually talked to the students for about ten minutes, telling us we needed to come because there would be all kinds of investors, money lenders, title companies and even CASH Buyers!

So a few weeks went by and I went to this meeting and let me tell you it was the best thing I ever did.  That first meeting though was really scary for me; I was in a world I didn’t feel very comfortable in.  Then about ten minutes after I was there I saw a familiar face from my training class.  I went up and we started talking about our training and this club we were at, and all the folks there.  A little later we saw someone else from our class. Soon we started all forming a little Networking group, and talking about what we had learned and what our concerns were about investing.  Then we talked about the current situation we were in, the club, how we felt like the little fish in a big pond with some really Big Fish.  We really believed the seasoned investors were going to swallow us up.  Soon the meeting started and there were different folks coming up to the front and one I remembered the most was this guy named John Zarrella.  Man, he was loud and funny and was throwing out ideas I never had even heard at my LIVE training.  I thought this guy knows a lot.  What I really liked is he didn’t look like an investor.  In fact, he had long hair and even an earring in his ear.  But then I found out he was one of the guys who created the club.

Over the years I would go hear him speak and he had his own local trainings.  I attended one of the club sponsored Saturday trainings where they taught me how to fill out my local contract.  I was so happy because this was one of those things that really worried me in the beginning.  Anyway, I learned a lot in that one day training.  In fact,  there must have been a hundred people in it that day. Then I realized there were other newbie investors out there just like me.

Well let’s bring in the Second topic folks are concerned about at clubs: Sales!  At the end of the training that day I felt very sure of myself that I could actually fill out a Texas contract with no problems, especially since they gave me four examples of some already filled out.  As my wife and I started to leave we were talking with other investors who had taken the class and to my surprise they were unhappy with the class.  They were upset that the class cost what it did, and that they had already been spending too much money with all these trainings.

I was thinking to myself yeah I have spent some money but, I also knew that I needed this training if I wanted to get paid in real estate.  I saw the value of someone who already made money doing this business showing me how to do it also, and faster than me trying to do it on my own.  In fact I was sure it would have cost me more and taken longer if I would have tried to do it all myself.

A few months went by and I finally did my first deal and got paid.  I was so happy it had actually worked.  I have to tell you it did not even go as I had planned but it did work.  Years later I started doing my own trainings.  I knew if I taught people what I knew I could multiply my efforts and do more deals.

Twenty something years later that club Aireo had always been there for me to go and network with other investors, learn from the guest speakers they had, and even allowed me to put my deals I had for sale on their Deal Table.  It was still allowing me to make money, in fact in 2002 that club founder John Zarrella and I became partners in the Fort Worth real estate club.  Who would have guessed that one day I would be partners with a great investor, friend and Christian Brother, and all because I went to a real estate club?

Now I write you this story on how you can make money at your local real estate club.  Keep in mind some investors are not really investors. What I mean is they got into this business to get Rich Quick.  They really did not have the right attitude from the beginning.  They just did it for the CASH!  In fact many newbies do not support their clubs; they only go when they think there is something in it for them.  That the guest speaker is going to reveal something they have never heard before.  They seem to forget the basics, and that is the ability to network regularly with like-minded individuals who are interested in real estate.  They tell themselves I will save the money this month by not going since I really already know how to do the topic of the night.  In fact a lot of seasoned investor say the same thing.  What they forget is; one you might learn something you did not know in regards to the topic of the meeting that night. Two, who you might meet at that meeting that could change your business forever.  Oh yeah, remember they know so much that they want to skip the meeting to save the money.  First clue would be if the meeting is going to tap your wallet dry, you may not know as much as you thought.  Well I don’t mean to be harsh but think about how the rich in this country do things.  They are always looking for ways to get together to brainstorm ideas with each other.  They Network all the time, they know the value of it, it’s why they’re RICH!

In closing, that club Aireo had to finally close its doors after some 24 years of teaching and helping investors.  A few days after they did I heard from a lot of folks saying wow! how could it be? Why did it happen? Simple; you have to support the things that mean the most to you in life.  You usually won’t know what you had till it’s gone.  I hope everyone reading will go to www.Nationalreic.org , look under Real Estate clubs for your local meeting, then go to it.  Who knows, someone at that meeting may just change your life, teach you something new, and Oh yeah; make you RICH!

 

Jimmy V. Reed         

Jimmy V. Reed of Fort Worth, Texas has been investing in real estate since 1987.  In 1991, he started conducting full-day training sessions on Wholesaling.  He then began teaching and mentoring others throughout the country. He is currently the founder of the Fort Worth R.E. club www.1REclub.com and has his own real estate training company that includes Wholesale, Probate, Mentoring & a Biblically based Debt Free training course and more!

More info available at www.JimmyReed.net

 

IS A REAL ESTATE FUND INVESTMENT RIGHT FOR YOU?

/in , , /by

By Fuquan Bilal

Is investing in a real estate fund the right financial move for you? Who is it for? Who isn’t it for?

Real estate funds have been proving to be both attractive and profitable vehicles for many investors. For many sophisticated investors, family offices and even larger and broader funds and endowments, they are now one of the main staples in their portfolios. More recently they have become one of the most important and vital parts of a well diversified, sound and high performing financial plan.

Some people though, haven’t hit the gas pedal on these investments yet. Real estate funds may be a new concept. Or perhaps they just haven’t taken the time to dig in and really figure out the advantages and why others love them so much.

ALL ABOUT THE YIELD

I’ve met a lot of people over the years. Of those that do make alternative investments, the choice becomes really about the type of yield that gets them excited. The sophisticated, passive and strategic investors intelligently spread their risks. They may have some investments that ‘promise’ the chance of higher returns which are riskier. Others are more conservative and are happy with lower yields – and may choose a solid fund with a 7% to 9% return to help keep them in that target performance circle.

DIVERSIFICATION & STABILIZATION

Funds are frequently a stabilization and diversification play for strategic investors. They may have turnkey rentals, do some private lending and hold some notes. They know they can be very exposed with these investments. Funds give them much deeper and broader diversification, which in turn lower risk and keep cash flow consistent.

Let me explain. By investing in a fund, individuals may have 100, 500 or more assets collateralizing and protecting their investment. That’s versus the one or few assets that flippers, landlords or hard money lenders have. Would you rather put $150k or $500k into a single asset and cross your fingers as insurance that nothing goes wrong, or have a $5M or $25M or even larger pool of assets protecting that investment?

ARBITRAGE

The smartest investors know they aren’t going to be as successful as they could be by themselves. This not only applies to building a strong inhouse team, but looking at all options. Some are great at playing the arbitrage game. They may be great at raising capital at 6% returns. Then they just delegate that capital and invest in a fund for higher yields. The fund does all the hard work of sourcing and managing the assets. The arbitrage investor gets cash flow on a platter to pay out returns to their investors.

Is a fund investment a good fit for your portfolio? If the yields are right, the diversification is a good match, and passive investing is a priority, then this could be the piece of the puzzle you’ve been missing…

INVESTMENT OPPORTUNITIES

Find out more about investing in secured debt and real estate, go to NNG Capital Fund.

An Industry Leader Discusses His Deals

/in /by

By Hannah Ash

Larry Goins doesn’t know it all. “When it comes to real estate, the learning never stops,” he tell me. When one of the country’s leading investors pauses for a moment of self-reflection, it’s worth a listen.

“You can learn something from everybody you meet,” he tells me. It’s one of the secrets to his success in real estate; he’s always on the hunt for a way to do it better. “Just this week, I attended two webinars,” he casually remarks. I must admit: I’m taken aback.

For someone who has been engaged in all aspects of real estate since the 1980’s, Larry Goins isn’t full of the slam-dunk advice one might expect; instead, his advice is to ask questions and keep an open mind. That’s what he does, he says. He wants to know how he can do better and wants to meet people who can teach him how; he is full of stories of things he’s learned this week and this month.

For a man who once served as president of the Metrolina ReIA and is a mortgage lender, real estate broker, agent and licensed general contractor, one would think he might just want to rest. Mr. Goins, however, is one of those rare breeds who love what they do so much, it doesn’t feel like he’s working a job. Goins’s work is stacking up success after success and helping others find their own successes along the way.

Mr. Goins has a motto, “People and principles before profits.” When he’s not working, he’s with his family. I ask if they share his interest for real estate. His 17 year old daughter loves equestrianism, he says, “and she regularly takes to the ring, riding in shows”. Goins also has a son and wife. “My 9 year old son is already a hard money lender,” he laughs. When it comes to his wife, it’s not much different, “Pam is a hard money lender too. She also gives of her time generously by leading her church’s food pantry organization.” Both altruistic and driven to succeed, it should come as no surprise that he’s found a way to marry his two loves together; family and success. Following in suit, Goins has seamlessly merged his love of successful real estate investing and his love of educating into a dream job. He works with a large team of professionals who are all as excited about real estate as he is. Based in his scenic hometown of Lake Wylie, South Carolina, The Goins Group focuses on education while his Investors Rehab is all about actively buying and selling a lot of real estate.

A published author, his first book, Real Estate Day Trading, is available in bookstores everywhere. HUD Homes Half Off, his newest release, is available on Amazon and through his website. In his free time, Goins regularly hosts seminars, webinars and gives interviews as a way to motivate other investors to get serious about their money. Goins’ real estate blog is full of well-crafted tips for new and seasoned investors.

An apprenticeship in real estate investment is the best way to describe what Goins and his team offer students. You can’t get a college degree in real estate investing, but, Goins says, “you can latch onto someone experienced whom you trust to start learning.” He and his team, in many ways, operate like a trade school. There are books to read, active mentors, seminars and real-world investing experience through Investors Rehab.

For investors looking to get started or looking for a new edge, The Goins Group aims to serve. Each week, the business advisors Larry trusts to work alongside him in his office, check in with students to touch base, answer questions and provide some motivation. Goins says he too gets on the phone and talks to his students whenever necessary.

The skills his investors learn, Goins says, can change lives. “Real estate is what you make of it”, Goins explains, and his programs work for everyone; his clients come from all walks of life. One of his students, Alon, a pediatrician currently living in New York City, is working with Larry to diversify his investments and bring in some extra cash flow. Another client is a former prisoner who was able to change the direction of his life forever. “Do your techniques work?”, I ask. The proof is in the pudding: the hundreds and hundreds of letters and video testimonials that Goins and his team proudly receive each year say it all. As an active real estate investor, Goins has a simple approach to buying real estate; his philosophy is one that most investors can rally behind, “I buy houses. I don’t get sold houses.” Goins says people often say to him, “Wow! That’s a great deal. Where’d you find it?” goins explains, “I tell them: it wasn’t a good deal when I found it. We created the deal.” Investors Rehab, the investing arm of his business, attracts all types of investors. Whether it’s an investor looking for a great deal or someone he’s mentored, Investors Rehab has no shortage of buyers.

To create such good deals, Goins and his devoted team are always on the hunt for property to buy. He estimates they make a jaw-dropping 2,000 to 3,000 offers a week; they purchase 10-15 properties a month through their office. Once an offer has been accepted, his dedicated team gets three repair estimates and conducts a comparative market analysis. The properties Goins buys and sells aren’t “turn-key,” he says, they are what he has dubbed, “learn-key.”

Learn key? “That’s right,” Goins tells me, “Learn-key means you learn as you earn.” Investors buy properties for great prices that need a bit of work, and thanks to the research the Goins team does beforehand, they know about how much work will be needed before a property is rental-ready or can be flipped. The legwork goins’ team does takes away some of the risk for new investors and is a great help to seasoned investors. “Learn-key properties come with instant equity while turn-key properties come with instant cash flow”, goins explains. He wants investors to get the most equity they can out of a deal. Simply stated, learn key teaches investors to fish whereas turn key gives investors the fish.

Larry Goins, and his career in real estate, stand apart from the rest. His continuous drive to perfect his craft, learn better ways of doing things and new challenges to win is both inspirational and rare. Though his son and wife have an obvious interest in real estate, perhaps his daughter’s interest in horseback riding indicates that she too hasn’t fallen far from the Goins tree either; in both real estate and riding, there are always different horses to tame, new challenges to tackle and techniques that can be improved upon.

“Keep Learning. Take action.” Goins says. Just as in horseback riding, in real estate you can’t go far unless you saddle up and start riding. Since this is an article about a man driven to help others, it should come as no surprise that he’s decided to offer our readers his book about buying HUD Homes Half Off free of charge to our readers. Think of it as a nudge to take action from Larry himself.

To receive your copy, simply visit Amazon or get your free copy via this website: http://freehudbook.com/