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Helping Realtors Find Clients and Listings in 2024

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By Rick Tobin

For many licensed real estate professionals and investors, this year will likely be the most important year for their career and investment strategies. I could write the same thing for the start of any previous year because it’s true for almost every single new year that brings us new opportunities.

I’ve held various real estate broker licenses in multiple states over the past few decades, so I fully understand the pressure that real estate licensees are under to find new clients and listings. I’ve also written college textbooks and courses (economics, finance, and real estate) in most states for the top 2 largest U.S. real estate educational firms and for the oldest and best-known real estate school in California.

Whether you just passed your very first real estate exam or have been an “old pro” for the past few decades like me, please reach out to me and we will work together to create a marketing plan for your target region. I’m also available online for brokerage office meetings and can be found as a new OnZoom instructor on their national public platform that’s linked here: OnZoom – Rick Tobin.

REALTOR® Statistics

  • In 2023, the U.S. had 1,566,354 Realtors, members of the National Association of Realtors, out of approximately 2 million real estate agents.
  • There have been between 200,000 and 300,000 active real estate licensees in California in recent years, depending on the boom and bust cycles.
  • Sixty-four percent of REALTORS® were licensed sales agents, 20 percent held broker licenses, and 18 percent held broker associate licenses.
  • The typical REALTOR® is a 60-year-old white female who attended college and is a homeowner.
  • 62% of all REALTORS® are female, and the median age of all REALTORS® is 60.
  • Real-estate experience of all REALTORS® (median): 11 years
  • Median tenure at present firm (all REALTORS®): 6 years
  • Most REALTORS® worked 30 hours per week in 2022.
  • The median gross income of REALTORS®—income earned from real estate activities—was $56,400 in 2022, an increase from $54,300 in 2021.
  • REALTORS® most often prefer to communicate with their clients through text messaging, at 94%. Ninety-two percent preferred to communicate via telephone, and 90% through email.
    Source: National Association of Realtors

Marketing Strategies for Realtors and Others

Attention spans: You have just 7 or 8+ seconds to quickly capture your readers’ or viewers’ attention span with a print or digital media ad. Focus on their needs and wants, not yours, for a higher rate of response (1% or higher).

Cash-on-cash advertising returns: The investment return for every $1 invested in your advertising campaign. For example, you invest $100 and collect $10,000 from a future closed commission at a 100-to-1 return on your investment.

Print media: Forms of marketing that can be held in your hand like mailed letters, postcards, flyers, newspapers, and magazines. Please avoid blind ad risks when you don’t clearly identify yourself as a real estate licensee.

Digital media: Online ads can be found on your blog, website, social media, and in native ads or sponsored ads (examples: Facebook, Google, Nextdoor, Alignable, Taboola, Outbrain, etc.). Email, text, and telephone marketing also work if the prospects aren’t on any do-not-call lists that exceed 300 million phone numbers.

Repetition is the key to programming and advertising. The more often that consumers see your ads online and/or in print media, the more likely they will remember you before contacting you for your services.

Merge print and digital media: The addition of a QR code on a print media design, which readers can scan with their phones prior to them seeing your online home listing or personal website, is an exceptional combination of both print and digital media at the exact same time at a fraction of the cost. There are free or affordable QR sites that will take your websites and convert them into a new QR code (Adobe, Canva, etc.).

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Social Media Marketing Numbers

Numerous published studies note that younger Americans are spending somewhere between 4.8 and 6+ hours on social media and a grand total of closer to 9 to 11+ hours on all types of media (gaming, television, movies, videos, etc.) every single day. If you want to reach your target audience for young first-time home buyers and older prospects, they’re found online.

With first-class stamps reaching 68 cents in January 2024 (3rd increase in a year; it’s rumored to rise to 70 cents in July ‘24), digital media ads may be more affordable and effective than print media.

Top 10 Social Media Apps (October ‘23)

1. Facebook: 3 billion (monthly active users)
2. YouTube: 2.5 billion
3. Instagram: 2 billion
4. TikTok: 1.2 billion
5. Snapchat: 750 million
6. X (Twitter): 541 million
7. Pinterest: 465 million
8. Reddit: 430 million
9. LinkedIn: 350 million
10. Threads: 100 million

The flip side of this print vs. digital media debate is that you will probably have much less competition this year when mailing letters and postcards because of the high postage costs. Will this translate to a much higher rate of response from your target audience? Please share with me later this year about which marketing strategies are working and which ones aren’t as effective so that we can learn together.

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Distressed Properties & Home Listing Opportunities

Listed below are strategies to either save distressed properties from being foreclosed and/or ways to generate new home listings:

  • Forbearance agreements: The lender agrees to postpone or delay their foreclosure actions with the delinquent borrower. These foreclosure postponements can last months or years.
  • Forbearance moratorium expirations: The Covid-19 FHA forbearance moratoriums ended on November 30, 2023, which may affect millions of distressed FHA borrowers who haven’t made a payment for upwards of 3+ years ($100,000+ in unpaid mortgage debt?). The VA moratoriums were extended until May 31, 2024, partly since the federal government probably didn’t want too many distressed home listings hitting the market at the same time. Please consider sending mailings out to both FHA and VA borrowers.
  • Loan modification: The lender or mortgage service company agrees to reduce the existing interest rate and/or monthly payment so that the loan is more affordable as a way to avoid foreclosure.
  • Deferment: The lender agrees with the borrower’s request to delay their delinquent payments until a future date. The late payments and penalties are added years later when the loan becomes due.
  • Reinstatement: After the borrower and lender agree to modify the monthly payments to avoid foreclosure, the loan is reinstated in good standing.
  • Short sale: If and when the mortgage debt is greater than the current market value for the home (aka “upside-down” or “underwater”), the owner should contact me so that I can negotiate a discounted mortgage payoff and help you obtain the listing and find a buyer. My past client worked on 6,000 short sales (#1 in the US) many years ago and I was their main mortgage broker.

Target the Subconscious Mind

Your subconscious mind is a type of automatic thinking center where your desires to purchase or sell a product or service truly originate. Most people are “impulse buyers” who quickly purchase a product, service, or asset like a home without really thinking it through and closely analyzing the potential pros and cons associated with moving forward with the purchase.

Repetition is the key to programming or deeply influencing others as I intentionally wrote earlier for better memory recall. Advertisers know this as well, so they continually flood your digital screens over and over to inspire you to purchase their products or services offered.

A simple way to find out what your target audience (one person standing next to you or in a hotel ballroom filled with 1,000 people) is to ask them a question like “What do you really want in life?” For many people, they will likely respond with love and money. It’s your turn then to show them how your product or service will help them later find love and money as you build the sales presentation around their needs and interests, not yours.

Interesting Subconscious Mind Facts:

  • It records everything.
  • It’s automatic and fully alert.
  • It takes almost everything literally.
  • It’s built on habituation and repetition.
  • It controls 95% to 99% of our thoughts and beliefs.
  • It’s one million times more powerful than our conscious mind.
  • It’s deeply affected more by voice tones, body language, numbers, and symbols than spoken or written words.

Influential Sales Strategies: Dale Carnegie

Warren Buffett, one of the most famous wealth builders in the history of the world, publicly gives full credit to Dale Carnegie for helping him overcome his overwhelming fear of public speaking and later becoming one of the best-known sellers and investors of all time.

I also took this brilliant Dale Carnegie course shortly after graduating from USC. To this day, I continue to use many of the same marketing and selling techniques that I learned while also sharing them in real estate and finance courses that I create for others.

A key component of a Dale Carnegie sales and speech course includes the A.I.C.D.C.: Attention, Interest, Conviction, Desire, and Close strategy. Let’s look next at how this sales concept can help you:

A (Attention): You’ve got about eight seconds to grab attention either online or in print like with a postcard. Either way, colorful and vivid images can attract your viewers’ eyes to your ad. In person, you grab their attention by learning their name (usually our favorite word), repeating it every so often, and talking primarily about them and their needs and interests to build rapport and trust.

I (Interest): Please think of the initial attention as akin to a “spark” that you must kindle by boosting the “flames” of interest by continuing to focus on your clients’ needs and interests. Keep asking them questions to find out their root needs and interests. You then speak to them by sharing how your product or service can give them exactly what they’re seeking.

C (Conviction): During this stage, you as the salesperson are certain that the client is interested in what you’re offering. Now, you offer valuable eye-opening statistics to support your claims.

D (Desire): You repeatedly show the prospect how the features or benefits of your product or service will get them what they desire (“Fact, Bridge, Benefit” technique). When successful, the customer’s desire to purchase your product or service will rise from low to high rather quickly.

C (Close): The absolute most important sales step is to close ‘em by asking them to buy your product. Your client may be 100% interested in your product, but may not know what to do next. It’s here where you show them how easy and simple it is to buy your product or for them to sell their off-market home with seller-financing that you mutually agree to and close the deal within a few days. Ask for the close and it’s more likely to happen.

Building a Trusted Network

● Circle or Sphere of Influence: Your friends, family, classmates, current and former co-workers, and connections from clubs, church, and networking groups and their connections as well that may number in the hundreds or thousands of people.

● These friends, family, and business professionals may be found at the local Chamber of Commerce, American Legion, Rotary Club, and Elks Lodge as well as with our Trusted Business Partners (TBP) networking group.

● Building a support network helps alleviate the burden of financial distress and increases opportunities like with our So-Cal Real Estate Investors group that meets at Canyon Lake Golf Club, Shoreline Yacht Club in Long Beach, and online.

● You’re more likely to take on the traits of the five main people in your circle of friends, family, and/or advisors, so choose wisely!!!

Helping Realtors & Investors Close More Deals

I’ve created hundreds of articles about fix-and-flips, short sales, seller-financing (subject-to, wraparounds, & paper flips), foreclosure bailouts, and was featured on the cover of Creative Real Estate Magazine (I was their #1 most published author for 10 years).

  • I’ve taught real estate licensees and investors across the nation how to find clients, distressed properties, and boost their sphere of influence to find more clients and homes to sell or buy.
  • If you or your clients have credit issues, I’ve written courses about credit for the two largest real estate publishers in the nation and may help quickly increase your clients’ FICO credit scores.
  • I can get you fast pre-approvals and help structure the offer with maximum credits to minimize cash to close.
  • My Realloans team and I will simplify your complex deals so that you and your clients are relieved, calm, happy, and close on time.
  • I’m affiliated with hundreds of real estate investment clubs and 1031 tax-deferred exchange groups, which have tens of thousands of qualified or all-cash buyers who can close quickly.
  • I will help your listings by sharing mortgage flyers with you and on my networking platforms to optimize viewer traffic.

2024 can either be your best year ever as a real estate licensee, or investor or it could be quite challenging if you’re not willing to make necessary changes. The choice is yours and yours alone as to your willingness to attempt new creative marketing strategies to boost your sales and purchase numbers.

I’m here to help you reach and surpass your goal targets. The best time to start is today, not next year. Best wishes for success in 2024 and beyond!

Rick Tobin

Rick Tobin has worked in the real estate, financial, investment, and writing fields for the past 30+ years. He’s held eight (8) different real estate, securities, and mortgage brokerage licenses to date and is a graduate of the University of Southern California. He provides creative residential and commercial mortgage solutions for clients across the nation. He’s also written college textbooks and real estate licensing courses in most states for the two largest real estate publishers in the nation; the oldest real estate school in California; and the first online real estate school in California. Please visit his website at Realloans.com for financing options and his new investment group at So-Cal Real Estate Investors for more details. 

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

Why Choose a CPA?

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By John Dutson, CPA

A regular accountant can perform many of the same functions as a CPA (Certified Public Accountant), including tax preparation and bookkeeping. So how do you know if hiring a CPA is the right fit for your business?

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What is the difference between an accountant and a CPA?

An accountant is someone who has earned their bachelor’s degree in accounting or finance.

A CPA has a bachelor’s degree, but has earned additional designations upon graduation.

To become certified, an accountant must have work experience, pass the Uniform CPA Exam, and meet all state licensing requirements. The exam covers their knowledge of business, accounting, taxes, and auditing.

Additionally, CPAs are required to take continuing education courses throughout their careers to stay up to date on laws and regulations.

Because of this certification, a CPA has a fiduciary responsibility to their clients, while an accountant does not. This means CPAs are legally required to act in the best interests of their clients, whereas a standard accountant does not have a license to lose.

Not just tax returns

Almost anybody can call themselves a tax preparer. It does not require extensive education to obtain a Preparer Tax Identification Number (PTIN), which the IRS requires for someone to receive compensation for completing a tax return.

But due to the demanding education and testing requirements that a CPA must fulfill, their expertise goes beyond just preparing and filing an accurate tax return on your behalf.

CPAs work with clients all year long, not just during tax season. Your CPA can typically help you with a wide range of issues, including future tax planning, college or retirement savings plans, or business strategies — whatever your goals entail, a CPA can help you achieve them.

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You’re not accountable.

Clients usually seek a CPA to ensure that they are dealing with true professionals who can be held accountable for their actions if ever the CPA code of ethics is not respected or for any other dispute between the client and the CPA.

CPAs have rules of professional conduct and a code of ethics. If they deviate or fail to respect that code, they would face sanctions by the professional body of CPAs. That could include monetary penalties or permanent expulsion from the order of CPAs in severe cases. The accountability rests on your CPA, not on you.

So when should I hire a CPA?

1. When You Are Starting a Business:

A CPA can recommend the best business structure for your company. How you structure your business will have an effect on your taxes – – whether that’s a partnership, an LLC, a sole proprietorship, or a corporation. A CPA will work with you to optimize your business’ goals and recommend legal structures.

2. During Tax Season:

CPAs can prepare tax documents, file tax returns, and strategize ways to minimize your tax liability for the following year. Also, CPAs can represent you if the IRS has questions about your return or if you or your business is audited.

3. In Special Circumstances:

If you’re thinking about taking out a loan for your business, a CPA can help you can recommend the best type of loan for your business, figure out the size of the loan and how payments will affect your cash flow, and prepare financial statements for your loan applications.

Or, when you’re facing significant structural or operational changes to your organization – – such as purchasing a business, merging with another company, planning to sell or close your business, or deciding whether to take on a new partner or dissolve a partnership – – you should consult a CPA about the tax implications for your business and for yourself.

MEET JOHN DUTSON

John is a CPA and the owner of Tax Guardian CPA, a tax preparation firm in Santa Barbara that focuses on detailed, personalized tax prep and consultations for small businesses and real estate investors.

Phone: (805) 364-4460
Email: [email protected]

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.

Learn Online and In Person

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Dear Realty411 Investors,

We hope you are enjoying this special season with your loved ones. As we prepare for a new year, this is the perfect time to reflect on some of the important lessons we have learned in 2023.

To help our readers refresh on the most important real-estate insight and strategies we shared this year, be sure to watch a replay of our most recent Virtual Investor Summit.

This replay will explain many strategies for real-estate investing success. Most of our online educators also join us at our in-person events, so be sure to review our live event dates to join us — see our event schedule below as well.

In the meantime, enjoy our latest tips, news, and information with this replay of our most recent online Virtual Investor Summit. Our replay has fantastic information that you simply don’t want to miss — take note of our educator, their topic, and start time below.

Steve Davis
Total Wealth Academy
Gain Insight on Your Investing Goals — Investors, Know Where to Start From Speaking Start Time: 01:32

Joseph Kimbrough
APEX Holdings
Let Money Work for You with Real Estate
Speaking Start Time: 57:05

Rusty Tweed
TFS Properties
Maximizing Cash Flow with 1031 Exchanges and Out of State Properties
Speaking Start Time: 1:50:00

Jeremy Rubin
The Friendly Flipper
From Corporate Career to Full-Time Property Rehabber
Speaking Start Time: 3:06:23

Jim Edenfield
Invest Success
Learn About Invest Success and
The Great Mile High Real Estate Investors Summit
Speaking Start Time: 4:09:42

Joseph V. Scorese
BRRRR Loans
How to Leverage Direct Lending to Increase Deal Flow and Profits
Speaking Start Time: 4:36:08

Hugh Zaretsky
REAL Brokerage
Learn How to Get Paid 9 Different Ways with the
Fastest-Growing Brokerage in the Nation!
Speaking Start Time: 4:58:00

Join us in beautiful Pismo Beach, California. The Central Coast of California is truly one of the most scenic and pristine areas of the state. Be sure to visit and learn real estate investing on the beach with our sophisticated colleagues from throughout the area and beyond. Our guests will enjoy a wonderful breakfast mixer. To learn more, CLICK HERE.

Network and learn in Southern California. Connect and learn from top real-estate investment educators. Subjects to be discussed include, multifamily investing, land banking, industrial real estate, infinite banking, asset protection, real estate development, single-family investing, finance and private lending, lead generation for agents/brokers, out of state investing, and more! Be sure to join us for our catered networking lunch, CLICK HERE.

We are back in the East Coast to connect with our readers. Realty411 will host an Investor Summit in the City of Brotherly Love to network, learn, and enjoy a day connecting. Our last event united investors from across the nation and many Eastern states for a wonderful day of education and collaboration. To learn more, CLICK HERE.

New In-Person Investor Summit in So Cal – Take Action

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Discover the Latest Insight, News and Investment Strategies at Realty411’s National Investor Summit in Southern California


Investors, we have exciting news, insight and networking at Realty411’s new in-person investor summit in Southern California. Our special one-day conference will host incredible educators from around the country, who are ready to share their valuable insight with our guests.

Since 2007, Realty411 has united thousands of investors from across the nation. Guests will receive our latest publication featuring wonderful resources, insightful news and educational articles.

Now is the time to take ACTION — join us to network with sophisticated investors from California and around the country. Upgrade as a VIP Guest ($49) and join us for a delicious buffet lunch as well.

RSVP TO OUR EVENT, CLICK HERE:

https://www.eventbrite.com/e/realty411s-national-investor-summit-the-latest-investing-news-insight-tickets-767074228667?aff=oddtdtcreator

Be sure to pencil this date now and join us in-person to gain specialized insight and knowledge. The information shared on this day could catapult your portfolio to new levels. Discover our new property portal, our VIP perks, plus connect with new and past industry resources.

Learn the Latest Niches in Real Estate + Connect with Influential Investors from across the nation right here in Southern California.

Are you ready to Grow Your Real Estate Business, Portfolio and Network?

Network and learn in Southern California. Connect and learn from top real-estate investment educators. Subjects to be discussed include:
multifamily investing, land banking, industrial real estate, infinite banking, asset protection, real estate development, single-family investing, finance and private lending, lead generation for agents/brokers, out of state investing, and so much more!

This is Your Chance to meet TOP Leaders in REI, Local & National Experts:

  • Learn from Leaders & Industry Pros
  • Meet Local PLUS Out-of-Area Investors
  • NON-Stop Tips for Real Estate Success
  • Bring Lots of Business Cards

RSVP TO OUR EVENT, CLICK HERE:

https://www.eventbrite.com/e/realty411s-national-investor-summit-the-latest-investing-news-insight-tickets-767074228667?aff=oddtdtcreator

DOWNLOAD AND LEARN TODAY!

READ IT NOW
LEARN MORE

Survey: Americans Prefer Portugal, Costa Rica & Mexico for Overseas Real Estate Investment

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Survey of International Living Readers Also Shows Preference for Beach, City Properties, Good Healthcare, Safety

By Ronan McMahon

Cabo San Lucas, Mexico – Ronan McMahon’s Real Estate Trend Alert, a leading source of real-time information for investors on off-market, insider real estate deals in up-and-coming locales, today released the results of a survey that ran in late October with 434 readers of International Living responding. Both people who are professionally active and retirees were surveyed. Portugal is the preferred destination, in second and third place are Costa Rica and Mexico respectively. When deciding to invest in a property, quality of healthcare and safety and crime rates are among the most important criteria investors consider.

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Investing in property abroad is no longer an option that is only available to affluent investors, but has gradually become more and more popular with middle class families in the last decade. Through the survey that was conducted with the readers of International Living, Real Estate Trend Alert set out to understand the preferences of American investors in terms of where they want to invest, how much they want to invest, and what they are looking to achieve with their investments.

Investments

The first question pertained to the amount people are planning to invest.

What is the total amount of investment(s) you are planning to make?

A large majority (79.54%) of respondents plan to invest less than $500,000. 38.14% even plan to invest less than 250,000. The numbers look very similar across retired and employed respondents. While at first sight, one might consider the investment amounts modest, it is important to take into account that in many foreign countries the price of real estate is considerably lower than it is in the United States. In Mexico, for example, it is possible to acquire a luxury condo in a five star beach and golf resort for $250,000.

Objectives

Respondents were also asked about the objectives they seek to realize with their investment(s).

What are your primary objectives with your planned purchase(s)? (Ranked)

The number one reason Americans invest in property abroad is that they want to relocate. In second place comes the search for temporary residence and in third place follows the search for a property that can be rented out. With only a few exceptions, the way respondents ranked their objectives are the same for people who are retired versus people who are employed.

Countries

Respondents were also asked where they plan to purchase real estate.

In what countries are you considering purchasing properties? [Top 5]

Portugal came out as the clear winner here, followed by Costa Rica. Mexico, Panama and Spain complete the top five (but the order in which they do so is different for retired Americans versus Americans who are employed).

Types of areas

Investors were also asked in what type of areas they would like to invest.

In what type of area(s) are you considering purchasing properties?

Beach property is the number one category of property purchased by Americans abroad. The city and suburbs follow in second and third place respectively.

Criteria for choosing a country

Finally, respondents were asked what criteria matter most to them when selecting a place to invest. For every country of the top five most popular countries, the three most important criteria were listed for the people who selected that specific country.

View on what people consider important when buying property abroad who selected one of the top five countries.

Safety and crime rates and quality of healthcare are predominantly present in the top three criteria for people who considered any of the top five countries to invest in. Both Costa Rica and Mexico have market conditions (perceived potential for appreciation) in their top three. For people who selected Panama, quality of governance was (on third place) an important factor to consider and Americans who want to invest in Spain attach (on third place) great importance to cultural affinity with the place.

“Americans want to feel safe.”

“The picture we got from the survey is very clear. Americans want to live close to the beach in a country where there is plenty of sun. They also want to feel safe and have high-quality healthcare,” said Ronan McMahon, founder and editor of Real Estate Trend Alert, who’s been a part of more than $2 billion in international real estate transactions over the past two decades.

“When Americans look to invest in property abroad, they do so for many different reasons with relocation being the most important one. People want to move to Portugal, Costa Rica and Mexico first and foremost. Panama takes the third place with retired Americans. When we look at the budgets that people have available to spend on property abroad, with a large majority not planning to spend more than $500,000, it is no surprise that we see Central American countries so prominently represented in the top three most favored countries.”

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MEET RONAN MCMAHON
AND REAL ESTATE TREND ALERT

Ronan McMahon’s Real Estate Trend Alert (RETA) is a real estate investment newsletter founded in 2008 by international real estate investor and author Ronan McMahon. It’s sourced and written by Ronan and his team of real estate experts who search the globe with boots on the ground for six-months out of the year looking for the best real estate deals. Since its inception, RETA has helped thousands of individual investors access off-market, insider deals in up-and-coming locales the world over. More info at www.ronanmcmahon.com.

Media Contact
Ray Young
Razor Sharp PR
512.694.6097
[email protected]

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.

Real Estate Investment Training Franchise, Invest Success, Announces Franchise Launch

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The company has officially kicked off its franchise offering, vetting franchisees across the nation for potential partnership.

Denver, COLORADO – Invest Success, a real estate investment training franchise known for its best-in-class training and education courses, has just announced the official launch of its franchise opportunity.

The Colorado-based company is pushing to expand nationally, already seeing momentum thanks to its unique program and model. The franchise includes a proven system of processes, development, and marketing strategies all created to draw in students and train them in the best strategies for creating and growing their real estate portfolios.

“We are changing lives through our program already and are excited to now have the opportunity to change lives through our franchise,” stated Jim Edenfield, co-owner of Invest Success.

“The demand for real estate investment education is extremely strong, leaving ample opportunity for our franchisees to grow their customer base quickly.“

Invest Success concentrates on presenting real estate from all angles, enhancing each students’ understanding of different real estate deals, ultimately producing real life results.

“Our franchisees have the opportunity to benefit from our support and training, our established systems, and our branding,” stated Edenfield.

“They will be part of a training model for real estate investment instructors across the country to provide education for people in their area, following a system that generates revenue year-round without relying on real estate market conditions.“

Invest Success is currently accepting applications for new franchise partners. To learn more about the franchise opportunity, visit www.investsuccessfranchise.com or email [email protected]. 

ABOUT INVEST SUCCESS

Invest Success provides best-in-class training for real estate investment. Students are prepared to take crucial steps towards becoming a successful Real Estate investor, building their portfolio of properties, and even owning their dream home. To learn more about Invest Success, visit www.invest-success.com. To get started with owning your own real estate investment training franchise, visit www.investsuccessfranchise.com.

Learn About The Great Mile High Real Estate Investors Summit

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The Great Mile High Real Estate Investors Summit has partnered with Realty411, BRRRR Loans, Invest Success and Realty Investors Group to present the premiere Colorado-based Great Mile High REI Summit in Denver to be held on March 8 – 10, 2024. The Great Mile High Real Estate Investors Summit is not your ordinary real estate event. This multi-day REI extravaganza will host 30 speakers at the unique Curtis Hotel in downtown Denver. Enjoy educational and networking opportunities, happy hours, lunches, dinners, entertainment, and a property bus tour around Denver. Stay to hit the slopes and enjoy all that beautiful Colorado has to offer.

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To find out more information about The Great Mile High Real Estate Investors Summit, visit: GreatMileHighREInvestorsSummit.com Be sure to also join the Summit Facebook Group for all the latest updates.

For companies or individuals who would like to inquire about speaking opportunities, please contact, [email protected]. See you in Denver this March for this life-changing summit with some of the nation’s top educators in real estate.

Investors, save $50 on your expo tickets — Discount is available through January 15th, 2024. 

The special discount code is “50offsummit”

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.

Relocating to a New State? Here’s What You Need to Know

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By Shirley Martin

Whether it be due to professional reasons or the fact that you need a fresh start, moving to a new state is an experience to look forward to. Realty411 explores the steps you need to take for making a smooth transition to your new state.

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Decide Where You Want to Live

The glitz and glamor offered by big cities often act as a strong pull for newcomers, but it is not the best option for everyone. Even if you are used to city life, the lifestyle and cost of living will vary greatly from state to state. For instance, moving from Pennsylvania to California can prove to be a major change.

Conducting online research should be your first step to learning about the best regions of the state, housing options, and proximity to amenities. To help you choose the region that best suits your expectations, consider working with local real estate agents that can help you learn about the area and housing market and assist in relocation activities.

Determine What to do With Your Old Home

You may need to sell your former home in order to afford the move. But even if you aren’t under financial pressure to sell, there are still many factors to consider to determine whether you should sell or rent your property. You should investigate market conditions before making a decision.

If you do decide to rent it, there are many things you’ll need to do to be a successful landlord. Ensure that you follow all legal requirements for your state and city. Be conservative when estimating your expenses, and prioritize high-quality tenants. With care and caution, you’ll be able to turn your former home into a productive profit center.

Prepare for New Costs of Living

Moving to a high-cost state can prove to be a challenge, especially for the first few months post-move. For instance, if you’re planning to relocate to California, here are some approximate costs to keep in mind:

  • Utilities – $375 (monthly)
  • Groceries – $302 (monthly)
  • Healthcare – $7,638 (yearly)

Additionally, as reported by Sofi, the median sale price in California was $700,000 as of 2021. While this number will fluctuate depending on the region, sound financial planning will be important to ensure your finances remain in control post-move. For newcomers, renting can be a viable option. On average, one can expect to spend between $1,2500-$2,350 each month, depending on the size of the home.

Keep in mind that local conditions can have marked effects on your cost of living. It’s wise to investigate the local market conditions before deciding on your desired community. This will help you avoid overpaying and keep your costs more manageable.

Protect Yourself With a Home Warranty

Another financial consideration is choosing whether to protect yourself against any possible appliance or equipment failures in the new house after move-in day. While a home inspection will likely identify major issues like foundation or roof damage, some items like appliances and systems may be past manufacturer’s warranty periods. In this case, a home warranty is ever more important. The last thing you want is having to foot the repair or replacement bill on the HVAC or the plumbing, or even major appliances left by the previous owner. Researching which home warranty company comes first; online reviews will help you find the best home warranty.

Finding a Doctor After Moving

It can be a time-consuming process to become a new patient with a local doctor after moving. If you have an urgent need to speak with a doctor, having a virtual doctor visit may be worth considering. When you opt for a telehealth platform, you can book a convenient online appointment with a licensed physician and meet from the comfort and privacy of home. Doctors work with most insurers, and should you need medicine, a prescription can be sent to your local pharmacy. This can be an excellent solution to your medical needs after moving.

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Explore New Professional Opportunities

Similar to other factors, the job market differs from state to state as well. If you’re planning to look for a new position post-move, research prominent industries in the state, which presents an abundance of job opportunities. These can be spread across industries such as real estate, fitness, food services, healthcare, and more.

If you currently run a business, you’ll need to take a call on whether to migrate it to your new state. Explore a new business guide to make sure you tick all the boxes. While this is no small task, a new location can provide better opportunities. Additionally, moving to a populous state will provide access to a sizable market and a large local talent pool to choose from.

Here is a business start-up checklist for you to follow:

  • Create a new business plan that includes your mission and vision statements, insights from market research, customer personas, short/long-term goals, and details about your product offering.
  • Depending on your industry, Starttech Ventures notes that becoming a member of local incubators or accelerators will help you connect with industry leaders, secure funding, and find mentors.
  • As a new business, the best structure to consider will be a Limited Liability Company (LLC). If you plan to start an LLC, you’ll be protected from business-related debts and be eligible to use expenses as tax write-offs. If you’re migrating an existing business, consider transferring the LLC to the new state.

Determine if You Need a Vehicle

Moving to a city with great connectivity overcomes the need of having a private vehicle. Using public transport will not only reduce commute times but help you save thousands of dollars a year on fuel, insurance, parking, and vehicle maintenance. However, if you’re moving to a smaller community beyond city limits, a vehicle becomes a necessity that makes life much easier.

Deciding to keep the vehicle will require you to drive it personally to your new home, which will need to be coordinated along with movers transporting all other belongings. The opposite scenario will require taking steps to sell the vehicle and ensure all requirements are complete before moving day.

In the days leading up to the move, remember to cherish the moments in your current home. While moving will be stressful no doubt, the future will be filled with exciting experiences and a whole new place to explore. It all starts with deciding where you want to live, researching the cost of living in your new locale, getting a home warranty, looking into local business guidelines and regulations, and pursuing vocational opportunities.

To learn more about real estate investing and marketing opportunities in the industry, visit REI Wealth Magazine today!

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.

IS IT CRAZY TO SELLER FINANCE YOUR RENTALS—OR CRAZY NOT TO?

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By Eddie Speed

IS IT CRAZY TO SELLER FINANCE YOUR RENTALS—OR CRAZY NOT TO?

We’re now in a note cycle. It’s as obvious to a note guy like me as when an oil guy hits a gusher.

I’ve been a note guy since 1980. As anyone in any phase of real estate knows, the market is constantly changing and evolving. We either change with it or get left behind. I can say from experience that what worked in one decade wouldn’t work in the next. And so on for the next, and the next, and the next.

Which leads us to 2023. We’re seeing a market phenomenon that’s producing a phenomenal opportunity.

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I’ve lived through cycles where owning rental properties made a lot of sense financially. But in today’s market, not as much. You owe it to yourself to test your investment strategy. Run the numbers and compare the profit potential of owning rentals versus selling your rentals with seller financing. Because of today’s high home prices and mortgage rates, I predict you’ll discover it makes more sense to be the bank (with NO expenses like taxes, repairs or insurance) instead of being the landlord (paying ALL those expenses). I bet you’ll also realize how much more income you’ll bring in every month by seller financing instead of renting.

HERE’S WHY NOW IS THE TIME FOR SELLER FINANCING

If you’ve ever dropped a coin into a slot machine, your eyes would pop out if all the dials lined up. Well, when it comes to dropping some money on an investment, all the dials are lining up on seller financing—especially in regions of the country where rents have dropped significantly. Here are some of the factors we’re seeing in today’s market:

• RENTAL HOUSE AFFORDABILITY The cost of buying a potential rental house is the highest since at least 1996. If you get a mortgage around 8%, and pay an inflated price due to the pandemic, you’ll pay 60% more than buying the same house three years ago. This makes it very challenging to scale up your rental business. On the other hand, if you sell your rental houses now with seller financing, you’ll get substantially more than three years ago. And you’ll be getting double or triple the interest now than you would have gotten three years ago.

• INCREASES IN RENT ARE WAY BELOW INCREASES IN PRICE Averaging all US markets together, the cost of buying a house is up 60%, but rents have risen only 22% during the same 3-year period. In many markets (mainly in the western half of the country), rents have declined since last year.

• SOFTER DEMAND FOR RENTAL PROPERTIES A glut of newly built apartments is depressing rent growth. And according to the St. Louis Federal Reserve, an additional one million units currently under construction will hit the market soon. Fannie Mae predicts vacancy rates in multifamily buildings will reach 6.25% in 2024, which exceeds the 15-year average of 5.8%. Apartment stocks are underperforming. To avoid vacancies, apartments lower the rent which depresses rental income for landlords.

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• CREDIT AVAILABILITY Underwriting standards have changed drastically because of the covid pandemic. Traditional lenders arenow hurting from over two million delinquent home loans. Money from banks and mortgage companies has gotten tighter and tighter, putting eager buyers—even ones with steady jobs and solid credit—in the penalty box. The mortgage credit availability index stood at 96.3 in October, 2023; which is about half what it was three years ago. Well-qualified homebuyers are getting turned down by traditional lenders; driving them right into the arms of seller financing.

• HOME APPRECIATION HAS LEVELED OFF Even though home prices shot up during the pandemic, prices aren’t maintaining the same trajectory. They’ve hit a plateau. Goldman Sachs expects home prices and mortgage rates to increase only 1.7% in the next year. That’s not just flat, that’s “stand on a brick and see fifty miles flat.” Now’s the time to sell your rental portfolio at top dollar and cash out before home prices stagnate.

• TAX ADVANTAGES When you sell a rental property that has greatly appreciated, you’ll owe a bundle in capital gains taxes. But if you take the profit over time through seller financing, the Internal Revenue Service allows you to spread out the gains using the “Installment Sales Method.” This technique has allowed countless sellers to pay no capital gains taxes at all. Of course, there’s always the possibility the IRS could close this loophole in the future, so better take advantage of it now.

YOU CAN MAKE MORE THAN DOUBLE THE MONTHLY INCOME FROM SELLER FINANCING THAN LANDLORDING

Today’s home prices and interest rates are both elevated. So when you sell your rental with seller financing, the monthly mortgage payment you receive will be much larger than your monthly rent check.

In the rental world, there’s the “50% Rule” (also what they call “The Magic Number”). It means 50% of rental income goes toward expenses. If the rent checks you get don’t surpass the 50% Rule—after paying taxes, repairs, and insurance—you’ll lose money. But as a note owner in today’s market—who DOESN’T pay taxes, repairs, and insurance—even a mediocre note would easily beat the 50% Rule of profitability. And with today’s high interest rates being paid TO you instead of BY you, the checks you get every month could be lots more than you get from rent.

GET YOUR APPRECIATION NOW INSTEAD OF YEARS FROM NOW

A frequent objection people raise when they compare note investing to landlording is that when you own a rental house, the property appreciates over time. It’s a fair question that deserves a fair answer.

As long as the rental property is kept in good repair, and the neighborhood doesn’t decline, its value should increase over the years until you decide to sell it. But let’s say there are two investors; one buys a rental property, the other buys a note, and both pay the same amount. Over ten years, the note investor makes double the monthly income compared to the landlord who pays taxes, insurance, and repairs for ten years. If the landlord sells the property after ten years, he gets the appreciation—but the rent checks stop (unless he sells with seller financing). As for the note investor, after ten years he still has twenty more years of payments coming!

Even if the landlord’s rental house appreciates roughly 10% a year, fire up your calculator and you’ll see how much more the note investor makes over the life of their investments.

THEN THERE’S THE HEADACHE FACTOR

Lots of landlords think they’re getting an investment, but it turns into a job. You have to deal with showings, repairs, and midnight calls from tenants to fix a leaky hot water heater. But when you own the note, repairs are the homeowner’s headaches. Every investor who has transitioned from landlording to seller financing will agree: You can own a thousand notes for the same amount of work as owning a hundred rentals.

If the note investor’s homeowner stops paying, your investment is completely collateralized by the property. But if the landlord’s tenant stops paying, good luck collecting the back rent.

ARE YOU READY TO TURN THE CORNER ON YOUR CAREER?

It’s been said that “Timing is to investments what location is to real estate.” The time is now and the door is wide open for you to consider selling your rental properties with seller financed notes. Don’t keep doing things the same way as always, and don’t look past this tremendous window of opportunity to boost your net worth like never before.

Learning the tools of seller financing and note creation will open up a whole new world of monthly cashflow and wealth-building—and we make it surprisingly easy at NoteSchool. The first step is to take my free 2-hour Master Class where you’ll be introduced to the lucrative world of notes. Just visit: NoteSchool.com/EddieMasterClass

Eddie Speed: Author, Teacher, Innovator, Visionary

Eddie grew up around horses, but in 1980 he learned there’s more wealth to be built with a pencil than a rope. That’s when his father-in-law, a pioneer of seller financed notes, taught him the ropes of the note business. Eddie has been perfecting his craft ever since, introducing creative innovations that changed the way note investing is done.

As the nation’s most experienced note buyer, he has closed over 50,000 note deals. He launched NoteSchool in 2000, where anyone can learn the art of creative financing for performing and non-performing discounted mortgage notes. He is the owner and president of Colonial Funding Group LLC, which acquires and brokers discounted real estate secured notes, and he’s a principal in a family of Private Equity funds that acquire bulk note portfolios.

Thousands of NoteSchool students have testified to the wealth building, life-changing power of his tried-and-true, data-driven approach to note investing.

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 to Overcome Declining Purchasing Power with Real Estate

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By Rick Tobin

Homeowners are 40 times wealthier than tenants. Real estate is an exceptional hedge against inflation because home values tend to rise at least as high as the published inflation rates.

If you’re fortunate to own real estate over years or decades, it’s very likely to be the main reason for the bulk of your family’s overall net worth. Conversely, tenants will be losing money over time as their rents continue to rise right alongside skyrocketing inflation rates.

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Americans in 2023 need to earn more than $11,400 to be able to enjoy the same standard of living as they did in 2021 thanks to the rapidly declining value of our dollar, according to CBS News.

If your earnings rose by 34% from January 2020 to October 2023, the purchasing power of your labor kept pace with higher costs. All of us who aren’t earning 34% more since January 2020 have lost ground. It now takes more hours of work to buy groceries and everything else. To offset declining purchase power, real estate ownership may be your best option.

The purchasing power of $100,000 in income in January 2020 is only $66,000 in purchasing power today (34% reduction). To keep pace with the rapidly falling purchasing power of the dollar, $100,000 in income in January 2020 would need to rise to $134,000 in income today or your investments would need to appreciate at the same rate to offset your dollar losses.

Rising Prices for Goods, Services, and Assets

Between 2008 and the 1st quarter of 2023, let’s review some of the “official” government published data for consumer goods, services, and assets from sources such as the U.S. Bureau of Labor Statistics:

  • Hospital services: +99.8%
  • College tuition: +64.4%
  • Child care: +62.1%
  • Medical care: +57.2%
  • Food and drink: +52.8%
  • Housing: 48.3%

Again, these are the published numbers that are likely underreported and much lower than the true inflated price changes. To me, it seems like all prices are significantly higher here in the 4th quarter of 2023 as compared to the 1st quarter this year. If so, the actual price gains may be significantly higher as we head into 2024.

All-Time Record High California Home Prices

In spite of mortgage rates more than tripling over the past year or so, housing prices statewide in California have never been higher for owners, new buyers, and tenants.

Shocking Los Angeles Home Price Swings

The median home sales price in Los Angeles County hit a record high of $914,640 in September 2023.By comparison, the median Los Angeles County home price was $318,075 (12/08).

Near the peak of the previous housing bubble and near the official start of the Credit Crisis or Great Financial Recession in late 2008, the median home sale price was almost $600,000 lower in Los Angeles County than median-priced homes in the same region. How is this not shocking?

Today, Los Angeles is ranked as the #2 most expensive U.S. city and the #6 most expensive worldwide city for residents to live in, according to KTLA News.

Many California homeowners have never been wealthier due to rapidly increasing home equity gains while many tenants have never been poorer due to their all-time record high rental payments, sadly.

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Expensive Coastal Regions and Inland Moves

Because some of the most expensive real estate prices in the world are located in California coastal counties like San Diego, Orange, Los Angeles, Ventura, Santa Barbara, and San Francisco (both a city and county name), more residents are moving inland to places like Riverside or San Bernardino counties in Southern California or out of state to Arizona, Nevada, or Texas.

Buyer demand still exceeds the available home supply while pushing home prices higher, especially in the Riverside County region, which is much more affordable than the near $840,000 statewide home price average for California.

Riverside County Home Spotlight Region

The median sale price of a single-family home in Riverside County was a new all-time record high of $620,960 in October 2023, up from $600,000 in September, with a rise from $599,990 in October 2022, according to the California Association of Realtors.

  • Lake Elsinore: $575,000 ($175,000 below the Temecula average)
  • Canyon Lake: $662,000
  • Menifee: $547,500
  • Murrieta: $657,500
  • Temecula: $750,000
  • Corona: $759,000

Adding Value to Real Estate

Owners or interested buyers who are thinking about purchasing a new one-to-four unit property to boost their wealth and/or monthly income with rental units have several options these days which may include:

  • First-time owner-occupied homes
  • A move-up from a smaller to a larger home
  • A short-term or long-term rental
  • Adding tiny homes or ADU (Accessory Dwelling Unit) to a residential property site to increase monthly cash flow.
  • Remodeling an existing home with a new kitchen, bathroom, or bedroom.
  • Building a brand new home, duplex, triplex, or fourplex from the ground up.

One-Time Close Construction Loans

I’ve worked on numerous individual home construction loans and large residential development tracts over the past few decades. Yet, I’ve never seen a better, easier, and more affordable home construction loan option for owners who are interested in building a brand new “dream home” for their family.

Generally, a person may need two or three separate loans to build a new home that may include a land purchase loan (40% to 50% LTV ranges are more the norm), construction loan, and a final 30-year takeout or permanent loan to pay off the construction loan.

With a One-Time Close Construction Loan, the borrower applicant qualifies for one loan to buy the land, build the home, and keep the same loan for up to 30 years all within one loan closing option. This way, there’s one credit report pull, one loan underwriting and approval process, one down payment unless it’s a VA loan (up to 100% financing) or a very low down payment requirement for FHA-insured and conventional loans (up to 95% to 96.5% LTV).

Let’s review below some of the loan product highlights offered by one of my main lending partners:

Conventional Loans

* Available on 15-and 30-year fixed conventional, high balance and 7- and 10-year ARM options
* Eligible on primary, second or vacation home, and investment property purchases and rate/term refinances
* Loan amounts up to the conforming loan limits
* 700+ FICO, up to 95% LTV
* 11-month maximum build period with 1-month modification period
* Interest-only monthly payments during the build period

VA Loans

* Available on 30-year fixed loans
* Loans up to $4M
* Eligible on primary home purchases and cash-out refinances
* 580+ FICO, up to 100% LTV
* 11-month maximum build period with 1-month modification period (build period is deducted from the loan term)
* No monthly payments during the build period

Rule of 72 and Power of Leverage

Real estate has proven to be an exceptional hedge against inflation over the past 100 years. In some economic boom years, home values may double in value every 2, 3, 5, 7, or 10 years. With minimal down payments, the true annual cash-on-cash returns are much higher than most people realize.

The Rule of 72 is an investment formula used to estimate how long it may take for an asset to double in value using a projected annual rate of return. If homes in your region have increased 7% per year over the past several years and home appreciation continues at the same pace in the future, then it may take 10+ years for your new home to double in value using the Rule of 72 (72/7 or 7% = 10+ years).

Most first-time home buyers use high mortgage leverage within a 0% to 6% down payment range (6% down is average).
Let’s use 20% down payment for an estimated cash-on-cash return for an owner-occupied or investment property buyer. At a 7% annual appreciation rate average, the cash-on-cash return is actually 5 times 7% (20% down – 1/5th; 80% bank – 4/5th) for a total 35% annual cash-on-cash return.

Time and inflation can be two great allies to eliminate the mortgage debt as your home rises in value thanks to the power of leverage and inflation.

Is the housing market positive, negative, or neutral? It depends on the home region, the regional home listing inventory supply, and the price range is perhaps the safest answer to give.

Why doesn’t it feel like a slow home sales market to first-time buyers? Let’s take a closer look at the national home sales numbers for October 2023 as provided by the National Association of Realtors:

  • 66% of homes for sale were sold in less than a month.
  • 62% of surveyed real estate professionals said that their first-time home buyers had to put in four or more offers before closing on a home.
  • The median home sales price for an existing home was $391,800, up 3.4% compared to a year ago.

Invest in Your Future Today

The average homeowner at retirement age has 83% of their net worth tied up in their primary home. 60%+ of Americans surveyed say that they live paycheck to paycheck, so saving is challenging. Middle-income parents may spend an average of $310,605 by the time a child born in 2015 turns 17 years old in 2032, per Brookings Institute. What about college?

The average Social Security benefit paid out in 2022 was $1,657/mo. ($19,884/yr.). Median savings rate (excluding retirement funds) by age: $3,240 (under 35); $4,710 (35-44); $5,620 (45-54); and $6,400 (55-64), per a Federal Reserve survey. The median retirement savings for all families is $87,000, according to the 2022 Survey of Consumer Finances.

There’s good debt (mortgages) and bad debt (credit cards at 28% to 33% rates, etc.). Mortgages help create long-term wealth, especially after they are paid off in full. To shorten the time to pay off a mortgage, you might pay biweekly and add some principal to reduce 10 to 15+ years in payments while the home asset potentially doubles or triples in value.

Our dollar’s purchasing power is on track to continue falling in value. If so, the prices paid for consumer goods, services, and assets like real estate may keep rising as well. As a result, equity gains for real estate ownership may increase while giving you more options to pay off debt and build a brighter future.

Rick Tobin

Rick Tobin has worked in the real estate, financial, investment, and writing fields for the past 30+ years. He’s held eight (8) different real estate, securities, and mortgage brokerage licenses to date and is a graduate of the University of Southern California. He provides creative residential and commercial mortgage solutions for clients across the nation. He’s also written college textbooks and real estate licensing courses in most states for the two largest real estate publishers in the nation; the oldest real estate school in California; and the first online real estate school in California. Please visit his website at Realloans.com for financing options and his new investment group at So-Cal Real Estate Investors for more details. 

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