August 2024 Newsletter

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Your Gateway to Investment Success

Learn how these local pro ’ s did it, and how you can replicate their process

BLOCKCHAIN TECHNOLOGY

RedSwan is reinventing the commercial space

GENERATIONAL PERSPECTIVES

A look at how to engage with the younger generations CAN YOU BE A MILLIONAIRE?

As summer winds down and we transition into the second half of the year, it's an opportune moment to refocus and reinvigorate your real estate investing journey At Milwaukee REIA, we're dedicated to providing you with the resources, knowledge, and community support to help you achieve your goals, and this month's newsletter is packed with valuable insights and opportunities.

This month, we are thrilled to invite you to our upcoming meeting where we will ask panelists “If you had to start from scratch, with no cash or resources other than what you know, could you be a millionaire again in 2 years?” Plus, this edition is packed with market trends as well as the latest news and insights into the local market

We are excited about what the second half of the year holds and are committed to supporting you every step of the way.

Can You Be A Millionaire In Just 2 Years?

This Month’s Meeting Will Answer That Question!

Can you really build a million-dollar net worth within two years from ground zero?

This month's event, "Millionaire Path Panel," is a must-attend for anyone looking to unlock the secrets to success in real estate investing. The Millionaire Path Panel will feature a lineup of accomplished real estate investors who have successfully navigated the challenges of the industry and achieved remarkable success This is your opportunity to learn directly from those who have walked the path to wealth and prosperity through real estate.

Key Highlights:

1. Success Stories: Hear firsthand accounts of the challenges, triumphs, and pivotal moments that shaped the panelists' paths to success Discover the mindset and strategies that set them apart in the competitive world of real estate.

Expert Insights: Gain valuable insights from a diverse panel of real estate millionaires. Each panelist brings a unique perspective and expertise, offering practical advice and strategies that you can apply to your own investment journey.

2 Q&A Session: Have burning questions about real estate investing? The event will include a Q&A session where you can interact directly with the panelists. Get personalized advice and guidance tailored to your specific goals and challenges

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3. Networking Opportunities: Connect with fellow investors, industry professionals, and potential partners. Networking is a powerful tool in real estate, and this event provides a fantastic opportunity to build relationships that could lead to future collaborations and opportunities.

During this exciting panel, we will be asking one big question to the panelists: “If you had to start from scratch, with no cash or resources other than what you know, could you be a millionaire again in 2 years?”

Whether you're a seasoned investor or just starting, the Millionaire Path Panel offers valuable knowledge and inspiration to propel your real estate endeavors forward Learn from those who have achieved the success you aspire to and gain the confidence to pursue your real estate dreams with renewed determination.

Event Details:

Date: Tuesday, August 13

Time: 6:00 PM - 9:00 PM

Location: Sonesta Milwaukee West

How RedSwan CRE’s Blockchain Technology is

Transforming

the Real Estate Market

Digital transformation is reimagining how people conduct business in every area of life including investing. At times, technology has created entirely new investment options. However, there have also been times when it was possible to apply a new technology to a traditional investment model with impressive results. RedSwan CRE is an innovative investment brand doing just that. The tokenized commercial real estate marketplace is using cutting-edge digitization to expand and improve one of the oldest sectors in the investment world: the real estate sector

How RedSwan CRE Is Tokenizing Real Estate

The commercial real estate market is massive. It’s estimated that the commercial sector in the U.S. alone should surpass a valuation of $25 trillion in 2024 Along with its enormous inherent value, commercial real estate is classically seen as a high-profit investment option, even compared to its residential alternative

Many people perceive commercial and residential real estate investments as having distinct advantages and disadvantages. However, upon closer examination, commercial real estate emerges as the superior choice, albeit with an important caveat

The primary advantage of commercial properties is that they have higher profit potential A categorically easy win. In contrast, the biggest benefit of residential properties is that they are priced at an accessible entry point

It stands to reason that commercial real estate would be the better investment if an investor could access it. That is where RedSwan CRE comes into the picture.

The commercial real estate investment brand has created a commercial real estate marketplace that uses blockchain technology to fractionalize ownership of large commercial properties This, in effect, removes traditional ownership documents from the equation. In their stead, RedSwan CRE creates blockchain-based digital security tokens

Investors can apply the same concept of tokenization to commercial real estate. Rather than come up with massive sums of capital to purchase and pay for a commercial property, investors can now use RedSwan CRE's marketplace to purchase fractional ownership interest. This turns those real estate investments into RWAs, or real-world assets backed by digital ownership

Fractional ownership broadens investor participation and makes it possible for hundreds of owners to participate pro rata on multiple properties. They can collectively pool their resources through RedSwan CRE’s marketplace and engage in commercial real estate transactions that would never be accessible on an individual level.

RedSwan CRE has proven this concept has real-world investing applications across the globe and in more than one scenario This includes a historic agreement to onboard and tokenize a $4-billion real estate portfolio in late 2023 and the development of similar on-chain real estate activity currently in Africa and the United States

These activities are regulated by the U S Securities and Exchange Commission (SEC), ensuring compliance and protection for investors. RedSwan CRE’s subsidiary RedSwan Markets LLC was recently approved by FINRA, the licensing body of the SEC, as a broker-dealer to process these transactions. In addition, RedSwan Markets will engage with institutional and accredited investors, providing a secure and trusted platform for high-value transactions

Real estate is a reality around the world, and anywhere commercial real estate exists, there is potential for RedSwan CRE to fractionalize and tokenize its ownership.

The Benefits of Tokenizing Commercial Real Estate

The ability to tokenize something as tangible as a piece of commercial real estate begs the question: why do so in the first place? Why is it worth converting a single commercial real estate investment into fractional ownership like stocks using the blockchain? There are quite a few reasons real estate tokenization is gaining popularity so quickly at the moment.

1. Boosting Liquidity

A primary benefit of tokenizing commercial real estate is its liquidity Traditional real estate investments are known for being illiquid, meaning it can take a long time to buy or sell a property.

By tokenizing ownership, real estate assets can be divided into smaller, tradable units. This allows investors to buy and sell fractions of properties much more quickly and easily. RedSwan explains this further, “Investment managers will no longer have to classify all real estate as an illiquid asset, modifying the future investment benefit of accretive yield and liquidity options ” This increased liquidity opens up real estate investment to a broader audience and allows investors to better manage their portfolios by quickly responding to market conditions

2. Streamlining Transactions

Real estate is notoriously slow. The act of buying and selling residential property can already take weeks at a time Commercial real estate’s timeline is even slower and can easily take months to conclude a deal.

Tokenizing ownership removes all of that wait time for investors. They can simply purchase a fractionalized share of a property, add it to their portfolio, and wait for it to appreciate in value enough to sell.

3. Enhancing Transparency and Security

Along with simplifying property management through streamlined transactions, moving real estate investing onto the blockchain makes it more transparent and secure. Blockchain is a decentralized technology It can trace the history of activities (including ownership) across a series of actions or “blocks” that are added by network consensus.

In other words, using the blockchain model creates a decentralized, immutable record of ownership. Once a new token holder has been added to the chain, they can retain possession of the token until another transaction takes place, adding a new block. This creates a remarkable sense of transparency and security, which is essential for investing on such a high scale

4. Lowering Barriers to Entry

Tokenizing ownership of the limited partners allows for multiple-party participation of up to 2000 U S investors while still being managed by one qualified general partner to protect and operate the asset. This lowers the barrier to entry, which is a critical resistance point for investing on a scale like that of commercial real estate

While commercial properties often require millions of dollars in down payments and other taxes and fees, RedSwan CRE’s decentralized tokens make it possible for ambitious but small-scale investors to buy commercial real estate with, in some cases, as little as $1,000.

5. Increasing Portfolio Resilience

Another positive of blockchain-based real estate ownership is the fact that investors can easily diversify their holdings. This is difficult when buying commercial real estate outright, as a single asset can require a significant portion of an individual’s capital By tokenizing ownership, RedSwan CRE enables investors to purchase fractional shares of multiple properties. This spreads out risk and increases diversification, even within the commercial real estate part of their portfolio

Unlocking New Opportunities for Investors

RedSwan CRE’s tokenized approach to real estate investment is a shift in the traditional property investment space In the same way that stocks allow for decentralized ownership of a company, real estate security tokens (STOs) open the floodgates for investors of all calibers to purchase fractionalized “shares” in massive commercial real estate deals around the world This is more than a new way to buy and sell real estate. The tokenized commercial real estate marketplace is redefining the kinds of investors involved in the process and the strategies that they employ when buying and selling real estate.

Milwaukee REIA Vendors of the Month

Gain 1031 Exchange Company is a Qualified Intermediary that assists property sellers with deferring capital gains taxes by facilitating 1031 taxed deferred exchanges

Our company strives to create comfort with the exchange process. Since exchange work is all we do, property sellers can rely on our expertise to answer questions and facilitate all types of exchanges from typical forward exchanges to more complex reverse exchanges

Patrick Harrigan 262-402-8072

Tomas Gutierrez 262-352-3610

Floor & Decor is a leading specialty retailer in the hard surface flooring market, offering the broadest in-stock selection of tile, wood, stone, related tools and flooring accessories - at everyday low prices.

Homeowners and professional contractors have access to superstore selection at warehouse prices with showroom quality. Extensive selection of in-stock product allows customers to get what they need when they need it. Floor & Decor sources directly from manufacturers or quarries worldwide, their top quality products are priced below those of their competitors

Market Update

Jason Andrews

Cesar Angeles

Richard Barnes

Gary Becker

Bret Beighley

Amy Berner

Danielle Bittner

Van Blackman

Gavin Butzlaff

Lucsin Colas

Darryl Cotton

Allen Thomas Cousins

Brian DeLorenzo

Jeremiah Dixon

Shawn Dooley

Ben Gohlke

Verdia Hampton

Shane Haness

Ryan Higgins

May Holoubeck

Mitch Junkhan

Mike Kramer

Kathy Lang

Loretta Lojanicich

Lukas McCormick

Dayna Miller

Angie Pitrof

Robert Pyles

William Reaves Jr

Trevor Richardson

Kyle Rieden

Scarlett Schroeder

Brooke Scott

Goutham Tatineni

Austin Wolfgram

Nah Yeh

Tool of the Month

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National Benefit of the Month

GET DISCOUNTED PRICES ON CAR RENTALS!

Avis Budget Group and its subsidiaries operate one of the world’s best-known car rental brands with approximately 5,500 locations in more than 165 countries. Avis has a long history of innovation in the car rental industry and is one of the world’s top brands for customer loyalty! Avis is owned by Avis Budget Group, Inc , which operates and licenses the brand throughout the world

Members of Milwaukee REIA receive special discounted pricing when renting a car at Avis.com and Budget com

At Avis.com, use Avis Worldwide DIscount code (AWD): T866500

At Budget.com, use Budget Customer Discount (BCD) code: Z657900.

Generational Perspectives

As with most parents, we always want our children to do well and be successful I myself only have one child, a 24-year-old daughter As she was growing up and going through school, I always wanted her to get into real estate investing. Why, because it builds wealth and provides income even while you are sleeping. For me, a baby boomer, it has been the greatest life I have ever known Pure joy

I always took my daughter to see my rental properties and told her that I own them but my renters are buying them for me I told her that they pay me rent to live there and explained to her about positive cash flow and how it works. I would also take her to rehab projects and walk her through them and then explain why we do it. I really thought I was rubbing off on her and making a good impression

She made good grades all through school and was eager to go to college. I asked her what she was going to study and she said Psychology When I ask her why, she said, that’s what I’m interested in. She told me that real estate is fine but “I want to do my own thing”. I respected her decision because when I was her age, I felt the same way. I wanted to do what I wanted to do, no matter what my parents wanted

My daughter went on to college and she did well, however, a funny thing happened during her last year at college – she all of a sudden became interested in real estate investing She started to ask me if I knew anything about wholesaling. I said yes, and I asked her where she had heard the term. She said a few of her buddies were telling her that they wanted to get into wholesale real estate You see, when we parents say it, the younger generation doesn’t want to listen but when their peers say it, it becomes a truth for them. I told her I would be glad to help.

She graduated from college with a degree in Psychology and Immediately got a job in Colorado Springs, Colorado and put real estate on the side. She explained that millennials have dreams to travel and see the world. Some had no desire to get a home and start a family or settle in one place They seem to just want instant gratification

Her job ended up being a one-year stepping stone but she loved Colorado and wanted to stay there but, decided to come back to Georgia My daughter discovered that living on your own is great but it takes money to make it. On her own she invested in the stock market and she said she lost money. It turns out she was day-trading. However, she remembered that real estate can produce large amounts of money and is a safer investment

I began taking her with me when I go out to find deals, I explained that it is very competitive and that’s why I go door knocking and driving for dollars. The very first door we knocked on together, the owner talked and talked My daughter jumped right in and the homeowner really enjoyed talking to her He told her everything about how he wanted to sell but didn’t know what he was going to do with all his stuff. He said his house needs a lot of work and that he wanted to move out of state and has a place in mind I said we would make an offer within twenty-four hours My daughter and I went back to the office to write the offer It ended up solving all the problems for the seller.

My daughter has seen the light and is very valuable to the business because millennials and the younger crowd do everything on their phones. She understands the benefit of driving the neighborhoods to beat the competition and while we sit in front of a house, she tells me the owners name, the after-repair value, any liens against it, and the approximate loan balance – all from her phone before we even knock on the door.

In summary, if you want to get your sons or daughters involved in real estate, I recommend you show them copies of checks. Why? Because that is their main motivation. Remember they like instant gratification and want to work smarter, not harder. If they have jobs, show them how to invest their earnings in real estate I would like to get my daughter a rental house or two – even if she must get a property manager. Owning real estate has a proven track record.

I recently wholesaled a property to a 20-year-old who has 16 flips being rehabbed at the same time. He is the project manager and finds the deals. He is kicking it and has a money-backer with very deep pockets. I was so impressed that I have made arrangements for my daughter to meet him and learn from his successes

We all wish we had started at a young age like that.

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