Creative R E A L E S TAT E A Stucco Complication Adam Hardy's Success Story PAGE
Deal of the Month PAGE Success Story PAGE Two Major BeneďŹ ts of Having Private Lenders PAGE Why Private Money? PAGE May Meeting Recap PAGE
Saturday Workshop: Best, Easiest and Safest Way to Amass Private Money with Alan Cowgill PAGE How to Handle One-on-One Meetings PAGE
Minnesota Real Estate Investors Association | www.MnREIA.com
MnREIA Trivia PAGE Add Value with Quick, Easy Deck Upgrades PAGE New Members PAGE Message from Mike PAGE June Meeting PAGE
June 2019 | 1
DEAL of the
MONTH Submit you’re before and a er pictures and a description of the project. All valid entries will receive $50 REIA Bucks and one lucky winner every month will win a $50 Home Depot Gi Card. Entries can be of current deals or past projects. Submit your entries to amckinnon@ therealestatehouse.net.
A Stucco Complication Adam Hardy, MnREIA Member I purchased this house in Blaine for $150k. I thought it needed a quick stucco repair on the rear of the house and a good cleaning and I would sell it on contract for $188k. Then I got the $10k bid for just the repair. Since the prior owner put the stucco on top of the wood siding, it needed to be all removed to be done correctly. I decided to remove it myself and do vinyl siding. And since that was going to be new, I decided to do new windows as well. Turns out the ‘good’ cleaning we wanted to do needed a bit more help as well since the prior owner had a cat that must have liked to miss the litter box. And the electrical panel needed to be updated as well. So after new paint, carpet, doors, trim, siding, electrical, windows, and garage door, I spent $35k. I sold it on contract for $225k and am making $40k profit plus 7.25% each year in interest.
2 | June 2019
Minnesota Real Estate Investors Association | www.MnREIA.com
Two Major Benefits of Having Private Lenders By Alan Cowgill
I started my business by using banks, savings, credit cards, lines of credit, creative techniques with sellers (like land contracts or lease/options), and partners. But, once I was self-employed, I was concerned that it was going to be harder to get loans to purchase properties. I had always been unhappy about how long the banks take to get the job done. I had it take 4-1/2 months on a house without a furnace. The bank didn’t know if they wanted to make a loan on that kind of house, but that is what my rehab business is all about. Buy ‘em ugly, cheap and fix ‘em. Just think, if I would have used a private lender on the above deal, I could have bought, fixed & sold the house and pocketed $20,000 by the time I got to the closing table with the bank. With private lenders, I have the funds available all the time. When a good
deal comes my way, I can grab it because I know the money is waiting for me. While my competitors are scrambling around applying at the bank, I’ve made an offer and closed the deal. My rehab crew is all over the property like ants before the competition knows what happened. I love having private lenders for my business. So, a major benefit is SPEED to purchase a property. Let’s look at another major benefit of having private lenders. My first private lender was my Mother. My Dad had passed away in 1989 and Mom had insurance money. She proudly invested it on bank certificates of deposit (CDs). When I became a real estate investor, I learned about finding private lenders and so I talked to Mom about it. She loaned me money and received 10% interest
in return. I paid her monthly just like her bank did with her CDs. She was delighted and so was I. As my use of private lenders increased, I learned that some of them didn’t need monthly payments and so I started to structure my loans so there was no payment until the property is sold. This is a huge benefit... Think about what this has done to improve my monthly cash flow. Now my Mom will always get monthly payments from me because she is retired and depends on that income BUT anyone who can wait on their money, I’ll let the money accrue. So the second major benefit is improved CASH FLOW because you don’t have to make monthly mortgage payments but just let the interest accrue. Alan Cowgill is a speaker, author and real estate entrepreneur. His step-by-step system “Private Lending Made Easy” teaches others to find private lenders.
WHY PRIVATE MONEY? By Alan Cowgill This topic is near and dear to my heart. When I started my RE career, I heard about the necessity of finding private lenders. In fact I even found two. But then I stopped. For four years I PROCRASTINATED. I didn’t get it!!! For four years I continued to go to banks and jump through their hoops. I also had used hard money lenders, but found them VERY expensive. It wasn’t until I quit my J.O.B. and found that banks wouldn’t loan me money that I realized that I needed to bring private lenders into my life quickly. When I took that step, everything changed for the better.
What are some of the advantages of using private money for your real estate investments? Well, if you haven’t decided whether or not to use private money, I decided to lay it on the line here for everyone to see. • Fast & you can buy at a discount • No credit check & doesn’t show up on your credit report • Unlimited funds • Control, you set the rules • Help friends, family & meet a great group of people • Get some of your profit when you buy • Cash flow • Flexible • Can make offers with confidence
Minnesota Real Estate Investors Association | www.MnREIA.com
• Can structure quick and more profitable exit strategies • Saves you money • Cheaper than a partner • Fund the purchase of defaulted paper •It is the foundation for a very profitable brokerage business In this business when a deal comes along you have to move fast. Many investors have watched a deal slip through their hands while they waited for the bank to approve their loan. Once you have private money available, that won’t happen to you! You can make an offer knowing you can go ahead and set a closing date. Meanwhile, your competition is wondering how you did it so quickly!
June 2019 | 3
The first step to SUCCESS is TAKING action!
MAY MEETING RECAP Thank you to everyone who came to our last Main Monthly Meeting with National Educator Vena Jones-Cox, teaching everyone on how wholesaling works in 2019. We were very lucky to have Vena come speak at MnREIA! If you didn’t make the meeting, remember that a perk to being a member is that you get to listen to the audio! Hope to see you at our next main meeting on June 4th!
Vendor, Jeff Winship with Geneva Financial being the “Loan Ranger”
There were a lot of Haves & Wants at our May main meeting!
Here’s another Haves & Wants page for you to check out!
Vendor, Doug Dybing with Surface Renew!
Volunteer EarleVena & Executive NationalJulia Educator JonesDirector of MnREIA – Anna McKinnon Cox spilling her Wholesaling holding down the fort attoregistration! knowledge everyone!
Full room at the Banquets of Minnesota with people eager to learn how wholesaling works in 2019!
4 | June 2019
Minnesota Real Estate Investors Association | www.MnREIA.com
SATURDAY WORKSHOP
BEST, EASIEST AND SAFEST WAY TO AMASS PRIVATE MONEY with Alan Cowgill 9 a.m. to 3 p.m. Saturday, July 6, 2019 Holiday Inn Arbor Lakes • 11801 Fountains Way, Maple Grove, MN 55369
COULD YOU USE AN UNLIMITED SUPPLY OF MONEY TO DO ALL THE RESIDENTIAL AND COMMERCIAL DEALS YOU CAN FIND?
ABOUT THE SPEAKER Alan Cowgill Private Lender Expert Alan is currently an author, a national speaker, and a private lending consultant. He’s been featured in three newspaper articles about purchasing real estate through private lenders. He’s appeared in three National Infomercials and he’s been published in two books titled “Walking with the Wise” where Donald Trump and other well known figures also contributed to these books.
Alan will show you how you can get the money you need to buy single-family houses, commercial buildings, apartment complexes, or luxury homes, regardless of your credit or financial situation. Alan will show you several things in the morning session like: • How to get profit when you buy your property • How to have people ready to write you a check to buy property by picking up the phone • Find out how not to be at the mercy of banks • How to get private money from people you don’t know legally • Find out magic words to prescreen potential lenders • Listen to Alan’s elevator speech to find private loans • His awesome luncheon presentation he uses to attract private funds • IRA’s- the greatest source of private funds • Learn the best, easiest, and cheapest way to
fund your real estate deals • Learn Alan’s step-by-step technique on how to buy 5 to 7 houses per month • Learn 14 benefits of using private lenders If you think his morning session sounds great, wait until you see what he has in store for you after lunch. Don’t miss: • Steps on getting IRA Lenders money to the closing table • How to keep in compliance with the SEC regulations • Do’s and Don’ts with private lenders • How to build credibility with lenders • Alan’s special Q&A session where he goes over critical elements with private lenders • Powerful yet inexpensive lead generating techniques • And Alan will show you how to do deals with no monthly payments. You make all the rules in this system, so don’t miss Alan show you how to find private lenders, so you can kiss your competitors goodbye.
EARLY BIRD SPECIAL PRICING Up To 7/2/2019 Members: $39, Non-Members: $59 7/3/2018 to 7/4/2019 Members: $49, Non-Members: $69 7/5/2018 to 7/6/2019 Members: $59, Non-Members: $79 Regular Price Members: $79, Non-Members: $99
VISIT WWW.MnREIA.COM TO REGISTER. Minnesota Real Estate Investors Association | www.MnREIA.com
June 2019 | 5
How to Handle One-on-One Meetings Now you have a date set for a one-on-one meeting so you have to get ready. Go through the same steps you would if you were making a presentation to a large audience. a) Prepare presentation items. b) Go through your checklist. c) Arrive on time. d) Look professional. e) Be professional. f ) Make your presentation. g) Close. Here’s a little more information about each of these points.
Prepare presentation items
This time you won’t be concerned with a projector but you may want to use a laptop. That makes a nice professional presentation. Another option is to print out the presentation and put it in a binder or notebook so you can make the same presentation with paper copies. You might want to put each page in a plastic cover to ensure the pages stay in perfect condition. Know your material backwards and forwards and be prepared to answer questions.
meeting. Sure, you don’t have a lot of items to count out but you certainly have items to remember and the checklist is a tremendous help.
Arrive on time
Be courteous and arrive on time. If they are late don’t mention it or if they mention it, be gracious. If you arrive 20 or 30 minutes late, forget it. You’ve blown your credibility. They see that you don’t do what you say and the game is over.
Look professional
This doesn’t mean that you have to wear a suit to meet at the neighborhood coffee shop. This might come on a little too strong. Just be sure you are well groomed and look nice. We have sports shirts with our company name embroidered on the front that look great. Their first impression of you is just as important at a oneSee MEETINGS, Page 10
Go through your checklist
MEME OF THE MONTH
Use the checklist even if you are going to a one-on-one
All Aspects of Home Remodeling and Repairs Call your local Experienced Handyman Jim McKinnon (612) 590-0830 Jim.McKinnon@hotmail.com
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6 | June 2019
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Minnesota Real Estate Investors Association | www.MnREIA.com
May
Trivia
Answers on page 11 1. What is the benefit of putting an option on a property? A) The seller can sell to whomever they choose B) If the seller gets another offer, they must give you the first right to purchase C) You must purchase the property by the end of the option time period D) All of the Above
3. What is a Mechanic’s Lien? A) A lien on property in favor of someone who provided labor or materials to improve it B) The angle the mechanic stands at from constantly bending over while working C) A lien the mechanic puts on your car at the shop D) None of the Above
2. What is a Sandwich Lease? A) A lease on a Jimmy Johns franchise B) Paying Tuesday for a sandwich today C) A lease hold interest lying between the owner’s interest and the interest of the tenant D) None of the Above
4. What is a Bridge Loan? A) A long term loan to build a bridge B) A long term loan to cover numerous projects C) A short term loan used until a permanent loan can be arranged D) All of the Above
5. What does NOI stand for? A) Next Operating Income B) Net Operating Income C) New Operating Income D) All of the Above 6. When is a purchase agreement assignable? A) If there is a clause stating that the document is assignable B) Any time, as long as there isn’t a non-assignability clause C) Both A and B D) None of the Above
Congrats to this month's WINNER Tony Berg
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Minnesota Real Estate Investors Association | www.MnREIA.com
June 2019 | 7
Add Value with Quick, Easy Deck Upgrades mildew-resistant finish that is made to last without cracking or peeling.
By Geoff Case
Merchant, Pressure-Treated Lumber and Decking The Home Depot
There are many renovations or additions you can make to a home to increase its value. There is a growing love for outdoor spaces like decks and patios, according to the American Institute of Architects. These spaces are an excellent investment, as they establish or increase outdoor living area at a minimal cost per square foot. The national average for construction costs of a wood deck is less than $35 per square foot, according to the National Association of Home Builders. On average, adding a wooden deck equals an 81 percent return on investment when selling a home, according to USNews.com. If and when a home or property already has deck, look for smart and efficient ways to enhance or upgrade. Decking projects range from simple upgrades like lighting or resurfacing to more advanced jobs like installing new railing systems or swapping out deck boards.
Lighting
© ADOBE STOCK
warranty including protection against color fade and stain.
Natural Wood
The beautiful appearance on this wood makes it a top choice for decks, although natural woods can cost the same as composite and come with more work. Natural wood needs to be regularly weatherproofed and stained to keep their appearance. Types of popular natural wood include redwood, ipe, which is a Brazilian hardwood, tigerwood, which has a rich color with stripes, and cedar, which is rot resistant.
Pressure-Treated Wood
Whether you are looking to install a deck from scratch, repair an old deck or update for a change in appearance, decking material options are the most important decision to make.
If wanting to stick to a tighter budget, pressure-treated lumber is a great product to consider. This wood is affordable and durable. Another option growing in popularity is color-infused wood, which comes in a variety of different color options that don’t fade like or stains or finishes.
Composite
Decking enhancements
Decking materials
This material is becoming more popular in the decking arena because it requires little maintenance and looks like real wood. Composite decking is made from a mixture of wood and plastic, which makes it both durable and easy to maintain. The material doesn’t splinter or rot, and it doesn’t need to sealed or stained. One example is Veranda’s ArmorGuard decking, which is backed by a 20-year 8 | June 2019
If a deck or patio doesn’t need to be completely renovated, small changes in appearance or creative add-ons can create an outdoor space worth spending time and entertaining in.
Resurfacing
Revive the deck by first giving it a good cleaning, then apply BEHR DeckOver. This resurfacing product is durable,
Add to the ambiance of the outdoors by incorporating lighting in the patio or deck. Low-voltage LED lights continue to grow in popularity, especially since they use 80 percent less energy. These are a great option for decks as they can light a path from a patio to the home when installed in walkways, steps and post caps, adding to the atmosphere and safety of the outdoor area. Solar-powered landscape lights are also a nice option to add energy efficiency to the home’s deck while avoiding the hassle of wires.
Railing systems
Create an open feel to the deck by installing cable-railing systems. The benefits of this new trend include better sight lines with thin cables, durability that can withstand most weather conditions and minimal maintenance. For a more traditional deck-railing look, consider installing pre-built railing systems or sections. This will save you both time and money. Making major or minor updates to a property’s deck is a great way to make the property more desirable to potential buyers or renters. Although prices of renovating a deck vary on factors like locations, size and materials, what you add it is still a costeffective alternative to adding on a room in terms of return on investment. Geoff Case has been with The Home Depot for more than 18 years and in the lumber and building materials industry for nearly 30 years. He has worked as a merchant and a supplier — experiencing the different building practices and regional nuances of lumber and building materials in five different states.
Minnesota Real Estate Investors Association | www.MnREIA.com
Contact: Ryan Quade, Director of Commercial Lending = rquade@ccm-finance.com B < ; : 9 H G F E D C 612-263-8664 www.ccm-finance.com NMLS # of 1757643
REAL ESTATE EXPERTISE. LOCAL KNOWLEDGE. WHEN YOU NEED A HARD MONEY LOAN. RELY ON US FOR FAST FUNDING OF YOUR NEXT PROJECT.
BORROWER CENTRIC SERVICE. Responsive & straightforward communication, quick approvals and fast funding. We can close in as fast as 7-8 business days from receipt of signed Purchase Agreement. COMPETITIVE RATES.
We understand that you are doing your project to make a profit and every dollar counts. We offer competitive rates and terms so that you can maximize your profits. • Points from 2-5% • Rates from 8-12% interest only • Potential for 100% financing on purchase and rehab • It is acceptable for borrowers to take 2nd liens with CCM in first lien position LOCAL REAL ESTATE EXPERTS.
We know a good deal from a bad one and we are willing to lend on the good ones even when they may be too complex or risky for traditional lenders. We have a strong network of partners and relationships in the Twin Cities and may be able to assist in identification of profitable opportunities. Minnesota Real Estate Investors Association | www.MnREIA.com
June 2019 | 9
ANOTHER PERK FOR OUR MNREIA MEMBERS
CONGRATULATIONS the
to
NEWEST MnREIA MEMBERS! De Juan Washington Mimi Gebremichael
CONTRACT OF THE MONTH Free for MEMBERS ONLY at our main
monthly meetings
Tad Gebeyehu
Tristan Springer Matthew Thill Andrea Marty
LloEmprise Whitson Amanda Galindo Phillip Gapp
MEETINGS, Continued from Page 6 on-one meeting as it is at a luncheon presentation.
Be professional
Yes, this is a more casual setting but you can still conduct yourself in a professional manner. Always be aware that they are judging the way you present yourself as well as the program. You want them to trust you with a great deal of money so you have to convey to them that you are a serious businessman or businesswoman.
Make your presentation
Get to your presentation quickly; this is not a social call, but a business meeting. Don’t waste their time. They may want to chat or there may be other distractions like the family dog running around or phone interruptions. Stay focused and cover the material. If they have questions you can’t answer, assure them that you will find out the answer and get back with them. Remember that questions are not negative, it means they are interested!
Close
Just like at a luncheon presentation,
10 | June 2019
you have to have a close or “call to action.” Use the form in the system to ask if they are going to pass or play. No hard sell! Whether their answer is yes or no, thank them for their time and conclude the meeting. Do this over and over again until you have all the money you want! Alan Cowgill is a speaker, author and real estate entrepreneur. His step-bystep system “Private Lending Made Easy” teaches others to find private lenders.
Juliane Fosse
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Bob Maclean
Lyudmila Pavlova Stephen Omae Dale Maxfield Zachary Bell
Anna Prosen
Ericka McKenzie
Michael Alexander Sr.
Minnesota Real Estate Investors Association | www.MnREIA.com
MESSAGE from
MIKE JACKA Fear #1) No Money Many people ask me how they can start investing in real estate without money. My answer is usually something like this; if you can’t learn to make money without money, you will never be able to make money without money. I am not saying that you don’t need any money, that would be foolish to think you can. But you don’t need a lot of money. What you need is time to do marketing and research. Once you find a good deal, there are plenty of investors that would pay you a wholesaling fee for the deal, lend you the money or partner with you on the deal.
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TRIVIA ANSWERS
1﹒ B 2﹒ C
3﹒ A 4﹒ C
5﹒ B 6﹒ C
Minnesota Real Estate Investors Association | www.MnREIA.com
(651) 800-1501 KimBurke@Leader1.com mymortgagewithKim.com
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June 2019 | 11
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