5. In Loving Memory of National REIA’s Founder, Thomas Irving Hennigan
6. Communication is Key
8. Mamdani’s Rent Freeze Could Sink New York Landlords
9. Fundamentals of SDIRA Private Lending
11. Million-Dollar Properties, Missing Millions:
Anthony Maggio is a seasoned entrepreneur and active wholesaler in the Greater Boston area. He launched his first business at the age of 23 and has built and sold multiple businesses during his 15 years in the food service industry and 15 years in the sales and distribution of commercial offset printing supplies. He is an active member of the Boston Real Estate Investors Association.
Please tell us a little about who you are and what you did before getting into real estate investing:
I grew up in a triple-decker house in East Boston. My dad died when I was four and as a result, my mother raised her two youngest children by herself. I now live in Southern New Hampshire with Clare, my wife of 39 years. Together, we raised two adult children who are on their way to building their own lives.
on Page 12
How Embezzlement Hides in Plain Sight in Real Estate — And What to Do About it
15. Pets in Rental Housing: A Growing Opportunity for Property Operators
17. Tips for Cleanring, Selling a Smoker’s House
19. Intelligent Financing for Today’s Investor: How HELOCs and IBC Give You an Edge in 2025
19. Doing Your Own Title Search
Is Understanding ‘ROT’ the Key to Being a Better Investor?
By Scot Aubrey
hen you hear the word “rot” in relation to real estate, all sorts of bad visions and horror stories immediately come to mind. In fact, that word often translates in our minds to money, as in, “How much is it going to cost me to repair whatever is rotting?” Allow me to introduce a new way of looking at this word in a much better way, one that when done right, can actually add to your bank account rather than being a drain on it.
While every investor is intimately familiar with ROI — return on investment — which carries a great weight when evaluating a property, many may disregard an equally crucial factor, and that is ROT, or return on time. For purposes of this article, we will examine return on time to help you become an even more successful and satisfied investor.
Gut Reaction
If you will, please take the next 30 seconds and stop reading. I want you
to think about your portfolio by specific address if you can and think of or say aloud the address of one of your investments.
How do you feel when you hear that address? Many of you probably have that “perfect” property that houses great ten-
Supersizing Real Estate Investing with Catch-Up Contributions
By Carl Fischer
Most real estate investors already know the power of using retirement dollars to build wealth. What few realize is that once you reach age 50, the IRS hands you a new tool, the ability to make “catchup contributions.” These extra dollars, when directed into a Self-Directed IRA (SDIRA), can create meaningful buying power for property deals, private lending, and other real estate strategies. At first glance, the numbers may not seem dramatic. For 2025, the standard IRA contribution limit is $7,000. But investors age 50 or older can add another $1,000 on top of that. And thanks to provisions in the SECURE 2.0 Act, individuals between the ages of 60 and 63 will
Anthony Maggio
Your Net Worth is in Your Network: National REIA Membership Amplifies
By Rebecca McLean
Executive Director, National REIA
The adage “your net worth is your network” rings especially true in the dynamic world of real estate investing. As the Executive Director of the National Real Estate Investors Association (National REIA), I’ve witnessed firsthand how a strong network can transform an investor’s financial trajectory.
Since our founding in 1985, National REIA has been a cornerstone for more than 40,000 members across 120 groups, fostering connections that drive wealth-building and professional success. Our mission to promote, protect, and educate real estate investors underscores the power of community in amplifying both net worth and network.
Here’s how affiliation with a National REIA-affiliated association makes this possible.
The Power of Networking in Real Estate
Real estate investing is not a solitary pursuit. Success hinges on relationships — with fellow investors, industry experts, vendors, and policymakers. The saying “your net worth is your network” encapsulates the idea that the quality and breadth of your connections directly influence your financial outcomes. A robust network provides access to deals, capital, knowledge, and opportunities that are otherwise out of reach. National REIA’s framework, built on collaboration and resource-sharing, embodies this principle by creating a platform where investors can forge meaningful relationships that translate into tangible financial gains.
Why National REIA Affiliation Matters
As a federation of more than 120 local chapters and associations, National REIA offers unparalleled access to a nationwide network of real estate professionals. Joining a local REIA that is affiliated with National REIA automatically grants membership to our national organization, unlocking a wealth of benefits designed to enhance both your network and your net worth. From my perspective as Executive Director, here are the key ways our affiliation delivers value:
1. Unmatched Networking Opportunities
National REIA-affiliated chapters host regular meetings, workshops, and events that bring together like-minded investors, from novices to seasoned professionals. These gatherings are more than social events — they are where “deals and capital meet.” Members share strategies, discuss market trends, and form partnerships that lead to joint ventures, funding opportu-
nities, and property deals. For example, our annual events, such as the highly rated National REIA cruise, provide unique settings for investors to connect with peers nationwide, fostering relationships that often result in lucrative collaborations. As one member noted, “I do 75% of all my deals through people associated with REIN [a National REIA-affiliated chapter].”
2. Access to Exclusive Resources and Discounts
Affiliation with National REIA provides members with tools and discounts that directly impact their bottom line. Our benefits package includes partnerships with industry leaders like The Home Depot, which offers a 2% biannual rebate, 20% off paints and primers, and other special programs for members. Other partners provide discounted products and services tailored to real estate investors. These savings reduce operational costs, allowing members to reinvest in their businesses and increase their net worth. As I often say, “We are always thinking in terms of the needs of the industry and the individual investor.”
3. Education to Build Expertise
Knowledge is a critical component of wealth-building, and National REIA is committed to empowering investors through education. Our affiliated chapters offer monthly presentations, guest speakers, and access to National REIAU, our online training platform with courses that may be free or as little as at $9.99. Members can earn designations like the Professional Housing Provider, enhancing their credibility and skills. By learning from experienced investors and industry experts, members gain the insights needed to navigate complex markets, avoid costly mistakes, and seize profitable opportunities. This education directly contributes to smarter investments and higher returns.
4. Advocacy for Industry Protection
Legislative changes can significantly impact real estate investors, and National REIA’s advocacy efforts ensure our members’ interests are represented. From Capitol Hill to local city halls, we engage with policymakers to shape legislation that supports investors. Tools like BillTrack50 and VoterVoice keep members informed about relevant bills and enable them to communicate directly with legislators. For instance, our responses to proposed legislation during COVID highlighted potential pitfalls, protecting members from unforeseen financial burdens. A strong network, backed by advocacy, safeguards your investments and enhances your financial stability.
5. Community and Mentorship
The real estate journey can be daunting, especially for new investors. National REIA-affiliated groups provide a supportive community where members can find mentors, share experiences, and learn from both successes and challenges. Stories from our local members illustrate how connections made through REIA events can spark a lifelong passion for real estate. Similarly, members can leverage their local REIA to grow their business. These relationships foster confidence, provide guidance, and open doors to new opportunities, all of which contribute to financial success.
As Executive Director, my role is to craft a vision that serves both the industry and the individual investor. Since joining National REIA in 2001, I’ve seen how our network transforms lives by providing the tools, connections, and knowledge needed to thrive. Our focus on professionalism, ethics, and collaboration ensures that our members are part of a trusted community that upholds high standards. By joining a National REIA-affiliated association, you’re not just gaining access to discounts or events — you’re becoming part of a movement that empowers you to build wealth through real estate.
Join the National REIA Network
The phrase “your net worth is your network” is more than a catchy slogan — it’s a proven strategy for success in real estate. By joining a National REIA-affiliated association, you gain access to a powerful network of investors, resources, and opportunities that can elevate your financial future. Whether you’re a new investor seeking guidance or a seasoned professional looking to scale, National REIA provides the community, tools, and advocacy to help you succeed.
Take the first step today: Visit NationalREIA.org to find a local chapter and unlock the benefits of membership. As I often remind our members, “Real estate investors are vital to the American dream.” Let National REIA help you turn your network into your greatest asset —and your net worth into a lasting legacy.
Rebecca McLean is the Executive Director of National Real Estate Investors Association.
NREIA Legislative Update
One Big Beautiful Bill for Investors
The reconciliation package, also known as the One Big Beautiful Bill Act (OBBBA) was signed into law July 4th, and it made several changes to tax policy affecting real estate investors and housing.
The tax package needed to be passed with the impending expiration of the 2017 tax cuts at the end of this year. Without action, Americans would have shouldered at least a $4 trillion tax hike.
Congress took the opportunity not only to extend or make permanent much needed tax cuts, legislators enacted further tax relief. The new law will help boost long-term affordability, increase supply and protect the nation’s rental housing infrastructure.
Some key provisions of OBBBA:
• Makes the 199A deduction for pass-through entities permanent and keep the deduction rate at 20 percent. This is huge for S corporations and partnerships.
• Increases the estate tax exemption and makes it permanent. This means that in 2026, an individual may transfer up to $15 million (increased from $13.99 million in 2025) free of any federal estate, gift or GST taxes, either during their lifetime or at death. For married couples, that transfer amount is a combined $30 million, which is an increase from $27.98 million in 2025. This is all now subject to an annual cost-of-living adjustment.
• Permanently reinstates the 100% bonus depreciation for qualified property. In general, “qualified property” is tangible personal property with a recovery period of 20 years or less, and also certain qualified improvement property for real estate purposes. If your business is planning equipment purchases, software upgrades, or other major investments, this update could have a meaningful impact on your tax strategy.
Congress is Back in Town
Congress has returned from its summer recess. A handful of spending bills and a possible continuing resolution to avert a government shutdown are on the immediate agenda.
Soon, National REIA members can expect to see the Affordable Homeowner Access Act reintroduced in the House. This bill is another access point to homebuying by providing relief to individuals and small businesses so that they can sell their homes directly to a buyer without the fees associated with being a mortgage
originator. Seller finance is a useful tool for investors, whether they are buying or selling properties. Seller financing is also a powerful tool to transition renters to into homeowners.
The lead sponsor of the bill, Rep. Andy Barr (R-KY), expects to introduce the bill before the end of the year. This bill has been introduced in previous sessions of Congress but has not passed. Mortgage banks and community banks have opposed the bill. According to Barr’s office, he is listening to the concerns of the banking industry and seeking a path to gain its support or neutrality.
The Seller Finance Coalition, of which National REIA is a member, has been actively lobbying for this bill on Capitol Hill for several years.
Learn more by visiting their website: www.sellerfinancecoalition.org
Redistricting News
Each decade after the census, the amount of people apportioned to each United States House of Representatives district is determined. States must then redraw districts to meet the requirements. In most states, nothing keeps them from redrawing Congressional districts more frequently.
A handful of states are moving to redraw Congressional district maps right now. In Ohio, the state is constitutionally required to redraw its 15 U.S. House districts this year. Republicans will likely gain two or three seats there.
Texas passed a new map last month, potentially increasing the number of Republican seats in the U.S. House by five. Missouri’s governor has ordered a special session of its legislature to redraw maps, potentially adding one Republican seat in the House.
Californians will vote this fall whether to bypass that state’s redistricting commission and adopt maps drawn by the Democrat-controlled state legislature. This proposed map could add five additional Democrats to the House.
Other states considering redistricting this year include Indiana and Florida.
What does this mean for investors and National REIA? For our federal lobbyists, it means welcoming some new faces to the next Congress when it convenes in January 2027. For REIA leaders, it provides an opportunity to build new relationships with policymakers as they begin their time in Congress. Whether it’s becoming involved in their campaigns before the election, or getting to know them after, it is important for investors to become known resources of good informa-
tion on the housing market and investor-related issues.
Will the mid-term redistricting produce a Congress that is friendlier to investors? The short answer is probably — a bit. Nationwide, Republicans stand to gain more from redistricting than Democrats. On the other hand, 2026 will be a mid-term election.
Historically, the President’s party does not perform well in Congressional midterm elections. Redistricting could buck that historical trend. But the margin of majority in both the House and the Senate are expected to remain close.
Two Democrats in Texas who have been friendly to real estate investor issues such as seller financing are Reps. Vicente Gonzalez and Henry Cuellar. Both South Texas House members have had their districts redrawn by the state legislature to lean Republican, though both districts are still considered competitive.
The redistricting issue will play out through the fall, and in some states, maps may be decided by the courts. Stay tuned as this issue develops.
The Fight for Public Records
Across the nation, efforts have been underway by housing activists to shield eviction records from public view. Access to eviction records is vital in screening potential tenants. In May, a Massachusetts law took effect that allows renters to have their past eviction record sealed. This includes fault evictions, which can be sealed after just four years. Delaware passed a similar bill in July, though it limits the records being sealed to eviction cases that were dismissed, settled, or decided in favor of the tenant. In total, 18 states and Washington, D.C., have passed a measure to seal at least some eviction records.
It’s not all bad news. After a Clerk of Courts in Cincinnati removed eviction data from searchable public court records, the judges of their Municipal Court issued a challenge. After a lengthy battle, the Ohio Supreme Court ruled this summer that the Clerk must reinstate eviction searchable evictions records and make them public going forward.
It is likely that state and local laws to shield eviction records from the public will be challenged in the courts and ultimately be ruled on by the United States Supreme Court, with property rights at the heart of arguments.
If your group needs assistance advocating against anti-housing legislation in your state, connect with National REIA today.
Published quarterly for chapters, associated real estate investor associations, their members and guests.
Editor Brad Beckett brad@nationalreia.org
For inquiries regarding Membership, Legislative, REIA organization information or to become a industry partner, call National REIA toll free at
888-762-7342
Fax: 859-422-4916
Hours of operation: 9:00a.m. to 6:00p.m. Eastern time zone
Find us online at: info@nationalreia.org www.NationalREIA.org
RE Journal is published by Rental Housing Journal, LLC, publishers of Rental Housing Journal www.rentalhousingjournal.com
Publisher John Triplett
john@rentalhousingjournal.com
Editor Linda Wienandt linda@rentalhousingjournal.com
Associate Editor Diane Porter
Advertising Manager Terry Hokenson terry@rentalhousingjournal.com
In Loving Memory of National REIA’s Founder, Thomas Irving Hennigan
It is with deep sadness that we share the passing of our beloved founder, Thomas “Tom” Irving Hennigan, on Aug. 21, 2025. A visionary leader, devoted mentor, and true friend to so many, Tom’s life and work transformed the landscape of real estate investing in America.
Tom’s entrepreneurial spirit was matched only by his passion for people. In the mid-1980s, while serving as president of the New Orleans REIA, he recognized a powerful need: A national network that could unite and equip real estate investors across the country.
That vision took shape in 1985, when Tom gathered fellow leaders in New Orleans to share ideas and solve challenges together. The synergy of that meeting planted the seeds for the first National Leadership Conference in January 1986 — an event that drew 65 leaders from across the nation and became an annual tradition. From those roots, Tom formally founded National REIA, creating a framework that has since grown to serve more than 40,000 members nationwide. His belief was simple yet pow-
erful: When investors learn, share, and advocate together, everyone’s opportunities grow.
Beyond the association, Tom was an investor, lender, landlord, rehabber, and a generous teacher to countless people starting their real estate journey. He was known for his encyclopedic knowledge, dry wit, and gift for making complex strategies understandable and exciting. Whether he was negotiating on behalf of members, helping a new investor avoid a costly mistake, or simply sharing a story over a meal or drink, Tom led with authenticity and generosity.
He also had a zest for life — from cruising the Caribbean with friends and colleagues, to savoring the flavors and charm of his beloved New Orleans. He brought warmth and joy to every gathering, leaving a lasting impression on all who knew him.
Tom is survived by his wife, Lucha Esquivel Hennigan; his son, Stephen Hennigan, and daughter-in-law, Tracy; his granddaughters, Megan and Callie; his sister, Judy Klopp, and extended family whom he loved deeply. He was preceded
in death by his wife and partner in life and business, Peggy Koesterman Hennigan, with whom he built much of his enduring legacy.
A memorial service was held in late August. We invite the National REIA community to join us in honoring a man whose vision and generosity shaped not only our organization, but also the lives and careers of thousands.
As we reflect on Tom’s remarkable contributions, we recommit ourselves to carrying forward his mission: To educate, empower, and connect real estate investors so that we may continue to change lives, just as he did.
Rest well, Tom. Your vision lives on in all of us.
Communication Is Key
By M. Jane Garvey
The relationships we build in life are what makes all the difference between success and failure. Communication is key to relationship building. In our increasingly digital world, good communication is often a victim of ease and convenience.
Think of the frustration you experience when trying to get something fixed via the customer service department of most companies. It takes far too long, and the results are rarely acceptable. Even when you reach a human being, they rarely can help you. I experience the on-hold and transfer run-around far too often.
Provide a better customer experience
We can do better, and we must do better. One of the key advantages we have as small businesspeople is that we can chose the “customer experience,” and we can make it refreshingly easy.
• Be reachable.
• Be responsive.
• Make people reach out to you without hesitation when they need your help.
• Break down the barriers so that you can listen to the ideas and concerns of the people you work with and the people you serve.
If you are tough to reach, you will miss out on deals. It is a rare circumstance that you are the only one with a solution. If you have spent the time and money to market to people, then answer the phone, read the email, and respond! If you don’t, someone else will.
In today’s digital age, with AI, VAs, and many other means of “simplifying” our lives, it is tempting to set up autoresponders and other things that deflect the incoming call. We may even be deflecting incoming communication in the hope that the person will find the answer that they are seeking without taking our time.
It is true that sometimes people don’t want to talk to us, or they need answers when we aren’t available. While that may solve the immediate problem, it does nothing to build or maintain a relationship.
If you own rentals, you need a responsive manage-
ment and maintenance team. Some residents have gotten used to online portals where they can register their problem and someone will get back to them. While this may work well for routine maintenance requests, it doesn’t work well for emergencies, unusual problems, or relationship building.
Don’t deprive residents of the personal touch
Too much of the leasing process is run by automated systems these days, starting with the no-personal-touch showing experience, the online leasing, the get-yourkey-from-the-key-box to move in. Our residents are increasingly being deprived of the relationships that will help them feel valued.
As property owners and investors, there is a tradeoff that needs to be made. As our businesses grow, we do need to find more efficient ways of doing things. We also need to find an acceptable work/life balance.
My contention is that the pendulum has swung too far for many. The resident who doesn’t have any relationship with you is more likely to let the little problems fester until they become big problems. They are more likely to get upset and call you when they are angry that you didn’t fix a problem you knew nothing about, or worse yet, call code enforcement or an attorney about the problem rather than calling you. They may think you don’t care because you don’t communicate.
Great communication is not an all-or-nothing thing. Set up the automated systems if you want. Use them for the times that you need to have a break. I would recommend that you always have a way for people to get their problem handled if they have an emergency.
Ironically, advances in technology have offered us an abundance of ways to communicate, yet direct and effective communication has become a rarity.
Look at things from the tenant’s perspective
I would encourage you to put yourself in the other person’s shoes.
• Are you easy to reach?
• Do you welcome their call, email, text, or message?
• Are you responsive?
• Have they successfully met the goal of their communication?
• Will they look forward to communicating with you again?
• If not, what can you do to improve?
The relationships you build in life and business are key to success. Set yourself apart from the crowd in your wiliness to communicate and you will be amazed at the change it makes.
Jane Garvey is President of the Chicago Creative Investors Association.
"CamaPlan has helped me increase my ROI and opened my eyes to different diversification strategies so much that I recommend them to both of my National REIA Chapters at every meeting! National REIA education withCamaPlan provides a way to have more cash in the local individual REIA to do deals and provide tax-free income for life."
- Pete Youngs
Mamdani’s Rent Freeze Could Sink New York Landlords
By Howard Husock
It began as a New Year’s Day campaign stunt. A New York mayoral candidate wearing a suit and tie jumped into icy water off Brooklyn’s Coney Island. His goal was to call attention to his proposal to freeze the city’s rents. But now that Zohran Mamdani is the Democratic nominee and a national political celebrity, his plan has Sharon Cohen terrified.
Zohran Mamdani
“It would make me lose my building. It would destroy me,” says Ms. Cohen, 64. She owns a 99-year-old, 35-unit, fivefloor walk-up brick apartment building in the Highbridge section of the western part of the Bronx. The building is on a block with a storefront Pentecostal church at one end and two bodegas on the other. It is Ms. Cohen’s sole financial asset. She is an African-American widow (her late husband’s father had Jewish ancestry) who, before retirement, supervised a sheltered workshop for the developmentally disabled. The city puts the building’s market value at $1.1 million. Burdened with a $417,000 mortgage used to buy out a sibling’s share of the property, Ms. Cohen is afraid of losing it “back to the bank.” A freeze, she says, “would mean that still you have to make repairs — but you can’t raise the rent.” Repairs—done by her elder brother Gerald, the building supervisor — are constant. Tenants need new refrigerators. Damaged emergency exit doors must be replaced. The building’s residents “all have my cellphone number, and they call,” she says.
Even without a freeze on her rents — which average $1,300 for a mix of one- and two-bedroom apartments — the city is already making it so difficult for Ms. Cohen to keep her building that she is effectively under water.
“She essentially gets no income. She’s just trying to hold on to the building,” says Valentina Gojcak of Onesource Property Management, which has helped Ms. Cohen and other Bronx property owners in similar situations.
Under New York’s rent-stabilization regime, a board appointed by the mayor sets rent levels — and must approve any increase — for 960,000 rent-stabilized apartments, nearly a third of all the city’s housing units. In 2017 and 2018, under Mayor Bill de Blasio, the board
granted no increase for one-year leases — in other words, a rent freeze. This year, under Eric Adams, the board granted a 3% increase for a one-year lease, and 4.5% for two years. That came after New York University’s Mark Willis testified that owners of rent-stabilized properties in the Bronx are, on average, losing $120 a month on every apartment.
“Any rent increases,” Ms. Gojcak says, “have just been reducing the losses.” Banks, she says, are “terrified” they will have to take over distressed properties. Mamdani would have limited power to implement many of his tax proposals — but he could stack the Rent Guidelines Board with appointees willing to implement his freeze.
Even as Ms. Cohen’s rents have been “stabilized”— and in some years frozen — her property taxes haven’t. Over the past 10 years, her tax bill has risen from $35,202 to $59,106. During the rent freeze of 2017-18 alone, her tax bill rose by $8,000.
Ms. Cohen could conceivably scrape by if tenants all paid in full and on time on the first of the month. But few do. In the first half of July, she received $14,000 of an expected $46,000. She sees this as a holdover from the pandemic, when an eviction ban took effect and most of her tenants stopped paying. Post-COVID, city tenant-protection laws limit any concern of eviction. In the past 18 months, five tenants owing total back rent of $130,000 simply left. “She’ll never get that money,” Ms. Gojcak says. Nonpayment is “the rule, not the exception”: Current tenants owe uncollected rent of $158,000.
Ms. Gojcak says it takes two years to evict a tenant of a rent-stabilized apartment in the Bronx for nonpayment of rent. For an eviction to be approved, landlords must first correct any housing violation — even if they aren’t getting the rental income they need to pay for such repairs. What’s more, nonpaying tenants can apply to the city for “one-shot deals” — an emergency rent-assistance payment to cover large amounts owed. Payments may not cover the full amount, says Ann Korchak of the Small Property Owners Organization of New York, and they come with a one-year no-eviction clause. Even without such bailouts, almost all Ms.
Legislative Update ... continued from Page 3
ICYMI - Big Victory in Federal Eviction Moratorium and Chance to Recover Lost Rent
You may recall that during the COVID pandemic, the Centers for Disease Control (CDC) issued the Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19 Order (Order). The CDC’s Order prevented housing providers from evicting delinquent tenants from residential properties. The Order was initially set to expire on December 31, 2020, but Congress extended it through January 31, 2021, through passage of the Consolidated Appropriations
Act. The CDC ultimately extended the Order several times from there; the last time through July 31, 2021.
A lawsuit challenging the federal eviction ban was filed shortly after it came into effect. In May 2022, a federal judge ruled that the CDC lacked the authority to issue the moratorium, but dismissed the case without allowing for plaintiffs to seek relief from lost rent. The Federal Court of Appeals overturned this decision, agreeing that the CDC lacked authority but ruling that plaintiffs did, indeed, have claim to relief for lost rent. Citing the CDC order as a prohibition on evictions for non-payment of rent, the Court of Appeals ruled that the order amounted to a physical or regulatory taking.
Cohen’s tenants receive government assistance of some kind — either a federal housing voucher or city-provided public assistance. She values her handful of “working tenants,” who “pay on time.”
Mamdani isn’t wrong that rents are high in much of New York. By one estimate, the median city rent is $4,700. But regulation, not greed, is to blame. A great deal of the city’s housing stock is price-controlled, including the rent-stabilized stock and an additional 177,000 public housing units. Still more is income-restricted — including 50 city and federally subsidized developments with “affordable units” set aside for those with 60%, 80%, or even 120% of median income. All this creates incentives for tenants to stay put in their apartments — even if they no longer need as large a place as they once did.
According to the U.S. Department of Housing and Urban Development, 30% of New York City Housing Authority tenants are “over-housed,” meaning they have empty bedrooms. Low turnover in regulated units drives up prices on market-rate units. New York’s renter turnover rate since 2021 is 19% lower than the national average. That’s one reason rents for available units keep rising even as the city has been losing population. Caught in the crossfire is Sharon Cohen, just one property owner in the Bronx, trying to hang on. “I see people in the neighborhood handing out flyers to freeze rents for senior citizens. I ask them what will you do to help me, I’m a landlord — and they keep on walking.”
Howard Husock is a senior fellow in Domestic Policy Studies at the American Enterprise Institute (AEI), where he focuses on municipal government, urban housing policy, civil society, and philanthropy. This article was reprinted with permission. Learn more at www.aei. org.
In early June, the U.S. Court of Appeals denied the government’s petition to have this case reheard. This is a huge win for the housing-provider industry and means that plaintiffs in the case should be compensated for lost rent with the CDC eviction moratorium was in place.
Owners of rental properties can still join the case through August 2026 and can learn more at: www.cdcevictionlawsuit.com
Fundamentals of SDIRA Private Lending
By Jeffery S. Watson
If you’ve followed me for any length of time, you know that I’m a huge proponent of self-directed IRAs and using them for private lending. Let’s begin at the beginning…
“Private lending” is when an accountholder makes a loan from their self-directed retirement account (Roth IRA, solo 401k, HSA, etc.) in exchange for a well-documented, secured interest in a piece of appreciating real estate. When doing private lending, it’s important to have the right foundation for the process, and that starts with having a policy for lending and knowing what your lending criteria are.
The next step is to have a good process in place for doing the appropriate due diligence on the people, property and paperwork involved in the lending transactions.
The Key to Success
Thorough due diligence done correctly is foundational to a successful private lending transaction.
If you fail to do things the correct way, you will find yourself lending money based on emotion or other human attributes to people who don’t have solid business plans, good collateral, good paperwork, or maybe all three. Having a specific, mapped-out process for doing due diligence on the people, property and paperwork is imperative.
Just looking at the collateral isn’t enough. I can tell you firsthand that a bad person can ruin a deal irrespective of how good the property is or how fantastic the paperwork for the deal is. A good person with acceptable paperwork can still have a bad result if the property is bad. All three factors — people, property, paperwork — must be right to result in a successful private lending transaction.
When it comes to private lending paperwork, the most important piece is the note because the note becomes the asset held by the IRA. The dollars in the account are being exchanged for the written IOU (promissory note) which is the asset. A properly written note must lay out several key things, including, but not limited to:
• Who is the borrower?
• Who is the lender?
• How much is being lent and on what terms (interest rate, length of loan, etc.)?
• How will it be repaid?
• What collateral is being given to secure the note?
• What happens if a payment is late or missed?
• Is an extension permissible and what are the terms?
I have seen promissory notes less than a page long and others that are five pages long. I had a conversation with another attorney about a note that appeared to have been written by ChatGPT that was fundamentally flawed in two areas. If you are going to invest time and money into one area of your private lending business,
please spend it on your paperwork, especially when it comes to the promissory note!
The note also needs to reflect any additional terms that might be involved in the deal, such as the percentage of the note owned by each lender in a co-lending situation, whether the note is in a first or second position, and whether the note is being wrapped by another note or if it is the note doing the wrapping. These things need to be clearly spelled out in language that an eighth-grader can read and understand.
Using the term “security instrument” causes me to feel like I’m confusing people. When I use the term “security,” instead of thinking of it in terms of something that is an investment being bought, sold or traded, think of it as a written document that “secures” or ties the repayment of the note to a tangible, economic asset that is lost as a consequence of failing to pay. The “security instrument” could be a mortgage, a deed of trust, an assignment of rents, a UCC-1 filing, or a collateral pledge.
Security Instruments Vary By State
When it comes to which paperwork to use as a security instrument for a note, remember that not all states are the same. Some states use mortgages, and some use deeds of trust. I’m not going to get into the nuances of each, but there are material and substantial differences between a mortgage and a deed of trust. A comparison will show that a deed of trust gives the lender a lot more power, authority and control over the collateral than does a mortgage.
The most important thing to remember— no matter which of the above-listed security instruments you are using — is that it be drafted by design to fit the particular deal being negotiated. Yes, 90% of the document will be what we refer to as “boilerplate” language, but that other 10% needs to be carefully thought through and drafted deliberately to cover the specifics of the deal.
Now we come to the high point of the private lending process. We are ready to close the transaction. This is the time when things can get chaotic. If you are involved in private lending as a lender, you must be in control and be the clear, calm voice who provides clearly written closing instructions to help the closing attorney or title company know exactly what steps need to be followed.
When I’m working with a private lender, we now do two sets of closing instructions. We have begun using a preliminary closing instruction letter outlining the things that need to happen at the outset of the deal, such as the title search being done and the commitment being prepared, and property and casualty insurance being obtained. These things take time, so we discuss them weeks before the closing.
Then, a few days before the closing, we deliver the dated documents along with specific instructions for how they are to be handled and signed. Those instructions also include what is to happen with the money.
The closing instruction letter clearly states that those funds are not to be distributed until I have seen copies of the fully-executed documents and have reviewed the final closing statement. This means the lender in the transaction is the one driving the bus, and everyone else is following along.
Loan Has Matured; Now What?
The private loan has now matured, so one of two things should happen. There will either be a payoff, or the parties may agree to an extension.
The loan can be extended by doing a modification agreement whereby the parties agree to extend the maturity date and either change some of the terms (such as the interest rate or the loan amount) or agree to keep them the same as they have been. Payment of an extension fee or additional points is usually involved.
Typically, the maturity date is reached, and the loan is paid off. Payoffs are good things because the money invested by your self-directed account is coming back to it. It’s important to remember that all payments made during the term of the loan and the payoff need to go back to the same source or SDIRA account from which the loan originated.
Payoffs must be done according to written instructions which indicate how much is due and on what dates, and how much the interest is for every additional day. The same goes for loan extensions. Any extension needs to be documented in writing. That’s fundamental!
Jeffery S. Watson is an attorney who has had an active trial and hearing practice for more than 25 years. As a contingent fee trial lawyer, he has a unique perspective on investing and wealth protection. He has tried over 20 civil jury trials and has handled thousands of contested hearings. Jeff has changed the law in Ohio four times via litigation. Read more of his viewpoints at WatsonInvested.com.
ants who pay on time and even manage some of the most common maintenance items out of their own pocket.
This property brings a smile to your face and good feelings, knowing that it is an asset that provides a great return on both your time and your investment.
Others of you had a physical — maybe even violent — reaction when you thought of a property that is less than your ideal. such as tenants who:
• Pay late consistently
• Call you for even the simplest repairs
• Cause friction with their neighbors
You know the one because it takes up an inordinate amount of your time and more than once you have considered offloading it, and its attendant problems, out of your portfolio and your life.
The Analysis
While ROT is an often-overlooked metric, it needs to play a critical role in your decision-making, particularly when time is limited. After all, time is money and every second you spend managing a property with a low ROT can feel like a total waste because you are sacrificing time that could be spent with family, on a hobby, vacationing or finding your next great property.
While there is no universal formula for ROT, you can begin by evaluating the benefits, satisfaction, or personal wealth derived from the time spent on a specific property. Time is finite, and therefore, optimizing how time is spent is just as important as financial investments.
ROT focuses on the time and the intangible returns that come from using time effectively. ROT is based on the
principle that time, like money, is a limited resource. Time cannot be bought back once spent; therefore, ROT considers the opportunity cost of how time is spent. Is the time spent working on a project worth the long-term value or the personal satisfaction gained from it? That is the key question in any analysis you perform with ROT in mind.
A Balanced Approach
Decision-making focused solely on ROT could result in the neglect of profitable opportunities if that is the only metric considered. Every investment you approach has to include a thorough look at the financial AND time aspects required to create a positive return.
For example, let’s say you found an underpriced property in a great neighborhood, but the home needs an exten-
sive remodel to make it appealing to the majority of the market. You also found a home in the same neighborhood that is turn-key ready but costs 75% more than the fixer upper. ROI and ROT would be evaluated when deciding between these two projects — one that offers a higher ROI but requires more time, and another that is less lucrative but can be completed more quickly. Only you can determine how much each factor weighs into your decision-making process, but both must be a major component of your final determination.
Conclusion
While both ROI and ROT are critical for evaluating decision-making in both personal and professional contexts, they serve different purposes. A lot of other factors will influence your investment path as well.
• Is this a hobby or profession?
• What is your age and how many years left do you have to grow your portfolio?
• What kind of financial backing do you have if things go sideways? These questions — and so many others — can help you determine how and when to use ROT as a measurement in your present and future investing. And if you are still feeling heartburn from the earlier exercise in which you thought about your portfolio, be bold enough to cut out the rot and move on to an investment that brings you both joy and financial freedom.
Scot Aubrey is vice-president of Rent Perfect, a private investigator, and fellow landlord who manages short-term rentals. Subscribe to the weekly Rent Perfect Podcast (available on YouTube, Spotify, and Apple Podcasts) to stay up-to-date on the latest industry news and for expert tips on how to manage your properties.
Members of National REIA can take advantage of special pricing from RentPerfect; the solution for rental property owners and managers for screening & managing tenants.
Million-Dollar Properties, Missing Millions
How Embezzlement Hides in Plain Sight in Real Estate — and What to Do About It
By Gita Faust
Accounting isn’t just about what you make. It’s also how you make sure you keep it.
Let’s get one thing straight: Most real estate embezzlement doesn’t look like a Hollywood heist. It looks like a friendly assistant. A trusted bookkeeper.
That “money guy” your partner swears by. It looks like loyalty—until the numbers stop making sense.
Did you hear about the former New York City real estate developer charged with defrauding investors? To learn more, search the net or ChatGPT. In the meantime, let me share what I have learned in my 50+ years of accounting. I’ve cleaned up more messes than I care to count. I’ve seen embezzlement in all shapes and sizes. STR portfolios. Flipping operations. Syndications. Commercial rentals. You name it.
Let me tell you about a few of them — and the quiet red flags you might be missing.
The STR Manager Who Played House — and Hide the Money
One of my clients owned a dozen short-term rentals, generating over $80,000 per month. Their VA-turned-property manager handled cleanings, supplies, and QuickBooks entries.
Everything seemed fine — until she went on vacation.
That’s when we noticed cleaning costs doubled in Q4 … with the same vendors … for the same units. Turns out, she was submitting fake invoices under a near-identical business name she’d quietly registered. “Sparkle & Shine Cleaning” vs. “Sparkle N Shine Cleaners LLC.”
Mistake: One person was in charge of bookings, expenses, AND bookkeeping.
Fix : Separate duties. Always. No one should control the entire flow of money.
The Flipper’s Partner Who Always Paid ‘In Cash’
He was the boots-on-the-ground guy. The GC. The one who “knew everyone.”
And he did. Too well.
Every time a deal wrapped, the books showed vendor payments to the same crew — only those vendors didn’t exist. They were aliases. The partner was cashing the checks and marking them as “paid labor.”
We found out because one investor called me and said, “I’ve seen that name on two flips, but no one’s ever met the guy.”
Mistake: No backup for check payments, no audit trail.
Fix: Implement a vendor approval system with EIN verification—and spot-audit 1099s quarterly.
The Syndicator’s CFO Who Was Too Good to Be True
Big deals. Bigger promises.
And a very slick CFO who “took care of everything.” Including forging bank statements to show false investor returns.
How was it caught?
A new investor requested a profit and loss statement
(P&L) broken down by asset. When I recreated it from source documents, the numbers didn’t match the distributions.
The kicker? The individual had previously worked for a publicly traded real estate investment trust (REIT). Charming. Smart. Dangerous.
Mistake: Over-reliance on internal reports without third-party verification.
Fix : Annual forensic reviews. Mainly when the same person builds, sends, and signs the reports.
The
Commercial
Rental Portfolio That Paid Twice
This one’s subtle.
Every month, property management fees were deducted from the operating account — and paid again from the reserve account. The PM company ran both sets of books, and no one noticed.
I caught it during a simple monthly reconciliation. $2,500 here. $2,500 there. Multiply that by 10 buildings, and you’ve got a six-figure oops.
Mistake: Lack of oversight over third-party managers.
Fix: Always reconcile your books against theirs. Don’t trust summary reports — request transaction-level exports.
So Why Don’t Investors Catch This Sooner?
Because you’re busy raising capital.
Because your team “handles it.”
Because it’s just one line item on a 30-page report. Embezzlement isn’t just a money problem. It’s a clarity problem.
If your QuickBooks is a mystery, your reporting takes three people and a prayer, or you haven’t reconciled bank accounts yourself in months — you’re at risk. Full stop.
The
Subtle Fix: Trust with Verification
You don’t need to become a suspicious micromanager.
But you do need:
• Segregation of duties – No single person controls bank, books, and billing.
• Password protocols – Two-factor authentication on financial tools
• Monthly reconciliations – Reviewed by someone not in day-to-day transactions
• Periodic reviews by an outsider – Like… me Look, I’ve been called in when the FBI shows up. I’d rather be called before that happens.
Final Word: Numbers Don’t Lie. But People Can.
That’s why good accounting isn’t just about math — it’s about detective work.
You might think, “Nah, not my team.”
That’s what every embezzlement victim says — until they realize they were funding someone else’s lifestyle with their investment returns.
Trust your team. But trust your books more.
And if you don’t? Let’s talk. I’ll help you see what your numbers are hiding — before someone else takes what you’ve built.
It’s Not Just a Real Estate Problem —
It’s
a Business Problem
Don’t get comfortable just because you’re not in real estate. Embezzlement plays no favorites. I’ve seen it happen in medical offices, coaching practices, e-commerce, franchises — even nonprofits. Anywhere money moves, and trust is placed, theft can slip in.
One client — a luxury salon owner — had a bookkeeper who “helped herself” to $1,200 a week in cash deposits. Over three years, that’s almost $200,000 that never hit the bank. The owner was too busy scaling locations to check deposits against actual register totals. She found out only when the IRS asked why her income didn’t match her 1099-Ks.
Another client in coaching? Her virtual assistant used her card to “test ad spend” and billed her for made-up hours every month. She trusted the reports and never checked the ad platform.
This isn’t paranoia. This is protection.
Whether you run an auto body shop or a yoga studio, fraud happens when three things align: Opportunity, pressure, and lack of oversight. You can’t control someone’s ethics, but you can make it harder for them to lie.
Clear books are like cameras in the back office — no one messes around when they know they’re being watched.
Accounting isn’t just about what you make. It’s also how you make sure you keep it.
Gita Faust is the founder & CEO of HammerZen, which helps businesses save time & money by keeping track of The Home Depot purchases and efficiently importing receipts and statements into QuickBooks. National REIA members receive discounts on QuickBooks services and software. Learn more by visiting www. hammerzen.com/nreia.
Member Spotlight — Anthony Maggio ...
When I entered college, I wanted to be a meteorologist, but when I left college prematurely, I ended up at a tech school and became an electronics technician. I seemed to be in a good spot working as an engineer’s aide at ECA in Cambridge, Women’s Technical Institute as a lab instructor and lastly at Wang Laboratories in the calibration lab.
After a few years, I realized being stuck in a 9-to-5 job was not going to work for me. It was then, at age 23, that I started my first business; Canteen trucks. I then spent 15 years in the food-service industry followed by 15 years in the sale and distribution of commercial offset printing supplies. After selling that company, I took a couple of W-2 jobs until Blue Legacy was born in 2017.
Where is your current market and what is your focus or area of expertise?
I’m actively seeking off-market properties throughout Greater Boston, Southern New Hampshire, and from Bedford to Peabody. I specialize in identifying homes in desirable locations that allow my investors to upsize the property and maximize their returns. My probate and estate support services naturally connect me with situations where properties become available due to a death in the family. In many of these cases, a sale is inevitable. I’ve also had success working with owners of vacant properties — often, the burden of carrying a vacant home becomes too much, and that’s where I can offer a helpful and timely solution.
How did you get started?
In 2017, after experiencing the loss of both my mother and father-in-law just eight days apart, I was thrust into managing both estates simultaneously. While my mother’s estate was relatively simple, my father-in-law’s — who was both a veteran and a Massachusetts state employee — proved to be far more complex. This experience opened my eyes to the many challenges families face during the probate process, and it ultimately led to the founding of what is now Blue Legacy Estate Services.
Through Blue Legacy, we offer hands-on, transactional support to families navigating estate settlement. Our “boots on the ground” approach includes property cleanouts, cleanups, and the respectful disposition of household contents. We also partner with attorneys by triaging documents — often diving into long-forgotten boxes — helping families prepare for legal meetings,
notarizing key paperwork, and managing properties as needed. During this process there are many tasks that can be accomplished without the attorney level of expertise. That’s the role filled by Blue Legacy Estate Services.
This unique line of work has naturally connected us with real estate opportunities. On the investment side, we are focused on wholesaling, with a goal of establishing a niche where we can work directly with homeowners from the outset, building trust and delivering value at every stage of the process.
Describe a typical work week for you as a real estate investor:
Working these my two businesses side-by-side certainly keeps me busy. I make it a point each week to get out into the field. This means visiting attorneys, Realtors, senior centers and elder services as well as knocking residential doors looking for prospective sellers or aging adults. I also visit the probate court weekly and attend one networking event each week.
How long have you been investing in real estate?
I bought my first investment property in 2006.
Tell us about your first deal.
I’ve always been drawn to new construction — the sounds, the smells, and the en-
ergy that comes with it. In 2006, I had the chance to purchase a newly built home in a Florida development. After we completed construction, I worked with a local property management company to secure a tenant but when the economy collapsed in 2008, that investment quickly turned into a struggle. I held on for a couple more years before finally letting go of the property. It was a tough but valuable learning experience. As I mentioned earlier, in 2017 I began helping families navigate the aftermath of losing a loved one. During that time, I saw many homes being sold but I wasn’t yet in a position to purchase them myself. Over time, the synergy between probate support and real estate investing became clear. That connection is what led me to where I am today: Focused on becoming the most efficient and trusted wholesaler in my area.
How do you fund your investments?
Currently, I’m using my own capital to secure properties under contract. Once under agreement, I assign these contracts to one of my investor partners, who then brings the necessary funds to close.
Do you have a real estate license?
I’m not a licensed real estate agent. While I’ve carefully considered the pros and cons of getting licensed, my current focus is on staying singularly committed to refining my techniques and processes so I can become the most effective wholesaler possible.
What projects are you currently working on?
I currently have two properties under contract: A teardown in Bedford, MA ,and a crazy, “finish someone else’s mess” rehab in Brookline, NH.
How much time do you put into your real estate education?
I dedicate several hours each week to learning. This includes listening to podcasts, webinars, and consuming other relevant media. I also attend one networking
Continued on Page 13
Maggio family photo from his son Michael’s wedding in Tuscany, Italy
Anthony relates: “Our low voltage contractor bailed out so my son and I worked around the clock to meet our deadline. We ran over 5000 feet of cable, installed 30 speakers,six TVs with surround sound and eight cameras.”
Member Spotlight — Anthony Maggio ...
event weekly to learn from those who have already walked this path. Additionally, I make it a point to visit the probate court once a week to stay familiar with the process and flow of real probate cases.
Has coaching or mentoring played a part in your success?
I enrolled in an educational program that paired me with a coach. While that experience was valuable, the greatest lessons have come from being in the field — talking to people, building relationships, and showing up at events. As we all know, consistently showing up is often the key to success.
What are your current and future goals?
My current goals are twofold:
1. To develop a strong network of professionals who know they can turn to me for support with any and all probate-related matters.
2. To refine my systems for sourcing off-market properties to wholesale, with the goal of building my cash position.
Long term, I plan to acquire and hold at a least two multifamily properties that generate positive cash flow each month.
What has been your top struggle in this business?
I must admit, my greatest challenge has been striking the balance between paying to grow my business versus working to grow it myself. Like any business, if I had more capital, I could invest in more marketing to scale. But here’s the catch — you can’t get more money for marketing until you get more business. You could hire help to share the workload and accelerate growth, but that also comes at a cost. It’s the classic chicken-or-egg dilemma, and while it may sound obvious, it’s been a very real and ongoing struggle for me.
What do you like most about what you do?
Call me crazy, but I genuinely love the fact that I can work my business from anywhere at any time. As long as I have my phone and an internet connection, I’m in business. At this stage in my life, that kind of flexibility is the most valuable asset I could ask for.
Do you have a tip or advice that you would pass along to other investors?
The best advice that I can provide, especially to somebody new in the business, is to be patient and consistent. Having that entrepreneurial spirit from such a young age has always driven me to be looking ahead to
from Page 12
the next challenge — bigger, better. What I’ve realized in this business, perhaps like many others, is that moving forward while learning from your mistakes, making corrections and being consistent is the best path forward.
How important is joining a local REIA to a new investor?
Joining a local REIA is critical on multiple fronts. It gives you the opportunity to learn from those who have succeeded — and from those who have struggled. It’s also a great place to build relationships with people you’ll likely work with in the future.
What is your favorite self-help or business book?
A great self-help book I recommend is the classic The 7 Habits of Highly Effective People by Stephen Covey. I also follow podcaster Ed Mylett. His content strikes a strong balance of motivation, inspiration, and — perhaps most importantly — actionable advice.
Do you have any interesting hobbies or something unique that you like to do?
I’ve been blessed with the best wife in the world and two amazing adult children, who we love spending time with. Whether it’s a laid-back gathering at home or spending a summer day at the lake, we really enjoy our time together. Last year, we had the incredible experience of attending my son’s wedding in Italy and we’ve decided that traveling abroad as a family will become a new tradition.
Does your business have a website? www.bluelegacyestateservices.com
Social media accounts?
I’m currently working on building my social media presence. In the meantime, you can find me on Facebook under Blue Legacy REI and by visiting my website.
Before and after renovation photos from a recent project.
Working 19 hours straight to complete sanding and staining boards before the carpenter arrived.
Supersizing Real Estate Investing
see an even larger bump up to the greater of $10,000 or 150% of the standard catch-up limit, indexed for inflation.
For real estate investors, these extra contributions are more than just incremental savings. They’re additional fuel for long-term deal-making.
Why Catch-Up Contributions Matter Now
Many NREIA members are already in the 50+ age group, and more are approaching it each year. At the same time, real estate markets continue to demand more capital. Down payments are larger, financing is tighter, and competition is stronger. Having even a modest stream of additional retirement contributions can make the difference between missing out on a deal and stepping in as a participant.
The SECURE 2.0 updates underscore this opportunity. For the first time, investors in their early 60s will have the chance to supercharge contributions during peak earning years, precisely when many are looking to shift portfolios toward stable, income-producing assets like real estate.
From Small Numbers to Big Impact
Let’s put the math into perspective.
• A 52-year-old investor contributes the standard $7,000 plus the $1,000 catch-up each year for the next decade. That’s $80,000 in contributions instead of $70,000.
• If those dollars are invested through an SDIRA into rental properties or private lending at an average 8% annual return, the difference over 10 years is significant. The investor who maxed out catch-ups could see nearly $116,000 compared to $101,000, a gap of $15,000 simply from using the extra contribution window.
Scale that forward: Combine a decade of catch-ups with the higher contribution limits available at ages 6063, and suddenly you’ve got enough to participate in larger joint ventures, co-invest alongside other retirement accounts, or take on bigger lending opportunities.*
Why an SDIRA Makes It Count
A traditional or Roth IRA invested in mutual funds will also benefit from catch-up contributions, but an SDIRA opens the door to assets that real estate investors already understand and trust. With CamaPlan, in-
vestors can use catch-up contributions to:
• Buy into rental properties. Those additional dollars can help cover closing costs, renovations, or operating reserves.
• Provide private loans. Even a few thousand dollars of extra capital can be pooled with other accounts to fund a secured loan to another investor.
• Join partnerships. Many real estate funds and syndications accept SDIRA dollars, and catchups can help investors meet minimum thresholds.
• Diversify into related assets. Beyond property, SDIRAs can hold tax liens, notes, or private placements, all areas where small amounts of capital can have an outsized impact.
The key is that every catch-up dollar contributed today is a dollar that grows tax-deferred (traditional IRA) or tax-free (Roth IRA), compounding alongside the rest of the account.
Comparing Two Paths
Consider two investors, both 55 years old, each with $200,000 in an SDIRA. Both contribute $7,000 annually. One stops there; the other adds the $1,000 catch-up contribution each year.
• After 10 years at an 8% annual return, the first investor’s account grows to about $420,000.
• The second, who used catch-ups, ends with nearly $436,000.
That’s a $16,000 difference from simply using the rule Congress created for them. And when you apply those dollars to leveraged real estate deals, the practical buying power is even greater.*
Practical Steps for Investors
For those new to catch-up contributions or SDIRAs, here’s a quick roadmap:
1. Confirm eligibility. Catch-ups apply starting in the calendar year you turn 50. Higher limits at ages 60-63 begin in 2025.
2. Choose your account type. Traditional and Roth IRAs both allow catch-ups. With a Roth, the after-tax dollars may deliver more flexibility in retirement.
3. Open or fund an SDIRA. At CamaPlan, opening an account is straightforward. Funds can come from contributions, rollovers, or transfers.
4. Identify your investment. Real estate, private lending, partnerships, and more are all options.
5. Work with your custodian. Ensure contributions and transactions are processed in compliance with IRS rules.
The Bigger Picture
Catch-up contributions may look like small line items on an IRS chart. Still, for real estate investors, they represent something larger: Control, opportunity, and a chance to put more of your own money to work in assets you understand.
As the rules expand under SECURE 2.0, the window is widening for investors in their 50s and 60s to use tax-advantaged retirement dollars to build wealth through real estate. For NREIA members, the question isn’t whether the extra $1,000 or $10,000 matters. It’s whether you’re willing to let that capital sit unused or put it to work in your next deal.
CamaPlan can support you in turning today’s contributions into tomorrow’s real estate opportunities. With clarity, confidence, and control, you can put your retirement dollars to work in assets you know best.
Carl Fischer is one of the founders and principals of CAMA Self-Directed IRA, LLC (dba CamaPlan). CamaPlan is a national, self-directed tax advantaged plan administrator company headquartered in Ambler, PA.
Members of National REIA can save up to $784, including a free consultation with the founder, one year of VIP customer service, and the opportunity to set up a new account for only $1. Plus, there are no annual fees until your first investment. You’ll also receive one free expedited transaction processing and two complimentary outgoing wires for your real estate deals. Please visit web.iraasset.app/nationalreia for more info.
* Calculations didn’t factor in the tax savings the client would get from traditional contributions. There are even more tax benefits, depending on your tax situation. Talk to your CPA or give us a call. If you have any questions, don’t hesitate to reach out to your CamaPlan account executive.
Pets in Rental Housing: A Growing Opportunity for Property Operators
By Victoria Cowart CPM, NAAEI Faculty
Today, well over half of U.S. households — between 66% and 75% — own a pet.
Let’s break that down in the context of rental housing. With approximately 44.5 million renter-occupied housing units in the country, and assuming 70% of these households have pets, that translates to more than 31 million pet-owning renter households. Among those, the average pet ownership per household is 1.6 dogs or 1.8 cats. Using the more conservative estimate of 1.6 pets per household, we’re looking at nearly 50 million pets living in U.S. rental housing.
The Disconnect Between Demand and Reality
Despite these staggering numbers, many renters and advocates—like the Humane Society—report ongoing challenges in finding truly pet-friendly housing.This disconnect can result in heartbreaking outcomes: pets being surrendered to shelters and renters struggling to find stable, fulfilling housing.
The question becomes: Why, with such a large market of pet-owning renters, does this disconnect persist?
While the housing industry frequently labels itself as “pet-friendly,” renters often encounter only limited tolerance. As one Apartments.com spokesperson shared, “Nearly all pet owners surveyed said pet policies play a major role in their decision of where to live.”
Turning Pet Policy into a Strategic Advantage
This is where pet policy management and property marketing intersect. Communities that proactively
promote their pet-friendly policies are not only seen as more attractive by renters — they also experience higher conversion rates and longer retention.
The same Apartments.com spokesperson noted, “Pets are a deal-breaker for many, and apartment buildings with more flexible pet policies will be the ones to attract this growing group of pet-owning renters—and possibly keep them for a longer period of time.”
Building Better Pet Policies: What to Consider
To craft or refine your pet policies, it’s important to go beyond a generic “pet-friendly” label. Consider including the following components:
• Pet Restrictions: Will there be breed or weight restrictions? If so, how will they be defined and justified?
• Pet Allowances: How many pets are allowed per unit? What types (dogs, cats, birds, etc.) will be welcomed?
• Rental Readiness: Move beyond blanket restrictions. Tools like PetScreening’s FIDO Score, which evaluates over 35 data points, offer a more holistic view of a pet’s rental readiness.
• Vaccination Requirements: How will vaccination records be submitted and managed?
• Pet Fees and Charges: Will you charge pet deposits, monthly pet rent, or one-time fees? How will these charges be structured?
• Renter Responsibilities: What expectations will you set regarding pet waste cleanup, noise control, or supervision?
• Pet Agreement: How will you document expectations and ensure ongoing compliance?
• Pet Insurance: While renter’s insurance is common, consider requiring pet liability coverage,
particularly for dog bites, which cost U.S. insurers $882 million in 2021 alone.
Balance Risk with Opportunity
As you build your policies, weigh both risk exposure and the opportunity to strengthen resident satisfaction. Arbitrary breed and weight restrictions often fail to account for the actual behavior or history of a pet. When used, they should be combined with readiness assessments and pet-owner accountability to form a fair and effective approach.
Recognize the broader value of pets in your communities:
• 97% of pet owners consider their pets family.
• Pets foster connection, helping reduce loneliness and build a sense of belonging.
• The physical and mental health benefits of pet ownership are well-documented—and valuable in today’s multifamily communities.
The Bottom Line: Know & Serve Your Renters — Furry Family Included
For years, the rental housing industry has sought to better understand renter demographics. Today, the message is clear: More than 66% of renters have pets, and nearly all of them consider those pets family. By embracing this reality and implementing thoughtful, relevant pet policies, communities can attract more loyal residents, boost retention, and enhance the overall living experience. Ultimately, it’s not just about allowing pets — it’s about welcoming the entire household. Let’s meet today’s renters where they are. Let’s create communities that foster both individual fulfillment and long-lasting resident relationships — with tails wagging every step of the way.
Victoria Cowart, CPM, NAAEI Faculty, is the Senior Director of Education for PetScreening. Previously, she was a direct multifamily industry member with extensive experience providing management and oversight for multifamily housing communities, mobile home communities, and HOAs. She is a property management instructor and a proud graduate of the NAAEI Advanced Facilitator Training. Victoria obtained her degree in the management of human resources and then her industry CPM designation. She has served the industry as president of both the local and state affiliates in SC as well as having served as a Regional VP for Region IV for NAA. Victoria has chaired four Committees for NAA, most recently serving as the 2021 Legislative Chair. She is passionate about legislation, education, and creating ease and understanding for industry members. Victoria is a wife, mother, and proud PetScreening pack member.
Tips for Cleaning, Selling a Smoker’s House
By Kim Tucker
Ok, it’s time to sell your home — either your own or maybe you have inherited a home or you are helping a loved one downsize. The only problem, someone smoked in the house and now the walls are covered with yellow nicotine stains, and let’s face it, it just plain STINKS! So how do you remove that smoke residue?
According to Realtor.com, smoking in a home can reduce the resale value by 29% because all that smoke is not just unsightly and stinky, but many of the harmful carcinogens are still in the house and you can still breathe them in. So you will want to deploy some or all of these tips before you put it on the market.
While many smokers just don’t notice the smell because they are used to it, most buyers will pick it up quickly and turn around and walk out. They are not only afraid of the smell, but many understand that often breathing in that smell and all carcinogens is harmful to their health. According to Joshua Miller with Rainbow International, a home restoration company, the harmful carcinogens from the smoke will linger in the dust, on the walls and other surfaces and they can be dangerous for pets and small children who touch everything and then put their hands in their mouth. And all the pollutants could remain months after the home is cleaned and vacant.
How to Remove Smoke Residue
Simple washing of the walls is not going to do the trick. There is much more to it than that. Often, particles are absorbed and have to be completely removed or sealed in. Here are a few of the steps we take when we’ve purchased a smoker’s home (but be forewarned: they don’t always get the job done).
Many articles we have read several articles say you can wash soft surfaces. For things like clothing and curtains, this might work. But no matter how much we clean carpets or soft furniture, we can never seem to get the smell out. The absolute best way to get the smell out of the carpet is to remove the carpet and pad and for upholstered furniture, that has got to go as well.
Wash the Walls & Ceilings
This one is a bit tough and it does not always do the trick. But start with a good cleaning solution such as vinegar and water or something mixed with trisodium phosphate (TSP) and scrub the walls and ceilings. Now
if the ceiling is covered with that popcorn stuff, and it is from before 1990, you might want to have it tested first for asbestos, as much of the older materials sprayed on ceilings contain this even worse carcinogen.
Use KILZ to Seal-in Smoke Residue
After a good scrubbing, the walls and ceiling may look better, but you will probably still have a lingering smell of smoke residue. Our next step is to seal it in. The best process is to paint over everything with a good primer coat of a product called KILZ. Just make sure you have very good ventilation, because this stuff has a smell that can do you in much faster than the smoke residue – at least until it dries. Then you can paint over the KILZ to make it all look pretty again.
And in some instances, we may remove the popcorn from the ceiling ,as it is no longer in style anyway. Sometimes, we will remove drywall and start over. If you have wallpaper, well you are going to want to spend some time removing that before KILZ and painting.
Cleaning Floors & Other Hard Surfaces
There are a lot of other hard surfaces in the home, and quite often we just take them out and replace them with new ones. That’s because they are so dated anyway and the cost to get them clean is much better directed at newer styles for our resale. But for those that are not quite ready to replace items, it’s time to grab that vinegar and water solution or TSP product and start scrubbing.
For floors like hardwood, vinyl, and ceramic tile, you might want to steam-clean these hard surfaces. You can also have your steamer contractor clean tile backsplashes, and shower and tub surround as well.
HVAC Systems Have Smoke Residue ,Too
HVAC (heating, ventilation, and air conditioning) systems need to be cleaned as well. If the house is rather old with limited upkeep, we find the HVAC components need to be replaced, but that still leaves all those feet of metal ducts inside the walls that are covered with smoke residue that must be cleaned.
When you hire a company to clean the ductwork, they will bring in a device that looks something like a bubble and run a big brush through everything as well as use powerful fans and suction to get the residue off the insides of your ductwork. The neighbors might be a little scared.
And after you get the HVAC system cleaned and or replaced, make sure to replace the furnace filters with a high-quality HEPA version regularly to continue to clean smoke residue out of the air.
Ozone Generator to Clean the Air
This was recommended to us by a friend – Ozone. Just be super careful. Get out of the house while the process is running. And vent the house before you come back in. The ozone generators had their recommendations. Our friend, however, had several steps.
1. Place several around the house – one by the HVAC system (Make sure the furnace is not running), one on each floor of the house.
2. Have all the windows and doors shut while you run the fan only on your HVAC system to circulate the ozone throughout the house and the ductwork.
3. He said to run overnight – at least 24 hours, the instructions from the generators say to run for an hour or two. We settled for somewhere in the middle at about 12 hours.
4. Vent the house as you go in; we started opening every window and door as we walked through the house to get to the generators and shut them off. They do have timers, but most are only for a few hours, not overnight, so we had to manually shut them off.
5. We let the fan on the HVAC system run for another hour with all the windows and doors open, to get all the ozone out of the house while we found things to do outside the home until the air was safe to breathe again.
This ozone process worked, but we had also taken all the previous cleaning and replacement steps to have the cleanest possible surfaces.
So, if you are selling a smoker’s house and you are faced with getting rid of the smoke residue you can do all the work, you can hire someone to do all the work, or you can skip it and sell it to us “as-is” for a fair price. We have not found a stinky house yet that we didn’t like.
Kim Tucker is the Executive Director of the Mid-America Association of Real Estate Investors in Kansas City, Missouri and have members from all over the metro area and from across the country.
Intelligent Financing for Today’s Investor
How HELOCs and IBC Give You an Edge in 2025
By Jason K. Powers
Homeowners and investors alike are looking for more control in 2025. Traditional mortgage options remain costly, with interest rates on new loans still hovering near multi-decade highs. At the same time, homeowners in the U.S. now hold a record amount of tappable equity, on average more than $212,000, according to ICE Mortgage Technology. Yet only a small percentage of that equity is being used. In the first quarter of 2025, Americans tapped just 0.41 percent of their available equity, even as overall HELOC withdrawals rose to $25 billion. These are levels not seen since before the Great Recession.
So, what’s holding investors back? For many, it comes down to structure. Most investors either don’t know how to access their equity without triggering a refinance, or they assume doing so means locking themselves into more debt with little flexibility. But there’s a lesser-known approach gaining traction that flips that assumption on its head: the First Lien HELOC. Unlike a traditional mortgage, a First Lien HELOC (FLH) replaces your mortgage entirely and gives you a revolving line of credit secured by your property. The key difference is how your money flows. Instead of sending payments once a month to chip away at interest-heavy amortization, every deposit (whether from rent, commissions, business income, or your day job) automatically reduces the principal balance. Interest is calculated daily on that reduced balance. So, the more income you route through the Fist Lien HELOC, the faster your balance falls and the less interest you pay. Some disciplined investors pay off their homes in five to 10 years, all while keeping access to the equity they’ve paid down. No more waiting 30 years to own your
Doing Your Own Title Search
By Tony Youngs
When I first got into real estate, I started with foreclosures. I would contact the owners to see if they wanted to sell.If they did, I would ask them how much they owed and they would usually show me the latest letter from the bank showing the balance and arrears.
Then I would ask them if they had any other liens on the property.They would usually say, “Not that I know of.” Next, I would make an offer and set a closing date with an attorney or title company. However, after a few days or weeks, the closing attorney would inform me of additional liens that needed to be dealt with. It would sometimes kill the deal or cause some sort of delay or problem.
On future deals I would hire a freelancer to do a search for me prior to making an offer. There were times that they would contact me and say, “This property has three mortgages, a federal tax lien, and three judgements,” and, of course, I would not buy the house. But I still had to pay for the title search.
The thought came to mind that I needed to learn how to do a title search myself. I went to my local real investors’ association to see if they knew where I could learn how to do this. At that time, they did not know of anyone.
I met a paralegal who once told me that there was a class at the local community college that takes you to the courthouse records room and teaches you how to do court records. I took the course and it was one of the best things I did for my business growth.
property. No more asking permission to use what you already earned.
For investors, this structure creates something incredibly rare in today’s financial system: Liquidity you can access and control without giving up momentum. You can use your FLH to fund renovations, cover vacancies, or close quickly on deals, then pay it back with incoming rent or profits, only to reuse it again when the next opportunity arises. It becomes a financial engine, not a fixed obligation.
But cash flow efficiency is just part of the equation. What you do with the freed-up money matters just as much. That’s where another layer comes in, one that solves a different but equally important problem: How to grow long-term wealth while keeping your capital within reach. Enter the Infinite Banking Concept (IBC).
At its core, Infinite Banking is about creating a private, tax-advantaged reservoir of capital through a specially designed whole-life insurance policy. When structured correctly, this policy builds cash value that you can borrow against for any reason. No credit check, no loan approval, no rigid repayment terms. You stay in control, and your money continues to grow even when you’re using it elsewhere. Imagine building an emergency fund, opportunity fund, and retirement plan all in one place, all while still being able to fund your real estate deals when the timing is right.
The dream isn’t about having one pot of money or one secret tactic. It’s about building a system. When you combine the First Lien HELOC and Infinite Banking, you create a two-part strategy that gives you both speed and stability. The FLH gives you flexible access to equity and a smarter way to handle income. The IBC system gives you a secure place to grow wealth, protect
it, and use it, all while bypassing the usual gatekeepers. It’s no secret that lending standards are tightening in 2025. Banks are more cautious, private lenders are more expensive, and investors are getting squeezed by rising costs on all sides. If you want to keep growing without giving up control, the question isn’t “What’s the rate today?”, it’s “How can I position myself to say yes when others are still waiting for approvals?”
This strategy isn’t just about paying off your house. It’s about freeing up your cash, gaining long-term stability, and becoming the kind of investor who moves quickly, makes bold offers, and creates funding options on your terms.
If you’re looking to understand how to put these tools into action, there’s a free on-demand course available called The Maximized Cash Flow Strategy. It walks real estate investors through the full model in plain language — how to use a First Lien HELOC to unlock equity and pair it with Infinite Banking to build longterm control. You can access the course and explore more at 1024Wealth.com/NREIA.
The investors who thrive in this market won’t be the ones chasing rates, they’ll be the ones who’ve built a system that works, no matter where the economy turns next.
Jason K Powers is a multi-business owner, real estate investor, and financial strategist partnering with the National Real Estate Investor Association. Trusted by investors nationwide, he helps real estate professionals unlock the power of the Infinite Banking Concept to fund deals, boost liquidity, and create lasting wealth—on their terms. Ready to take control of your capital? Visit 1024Wealth.com/NREIA.
Not only did it save me a lot of money, but it catapulted my success. For any homeowner who wanted to sell, I could quickly find everything recorded against the property: Federal tax liens, judgments, mechanic’s liens, and hospital liens. I would also find power-of-attorney and affidavits that contained information to help me negotiate win-win deals with the seller.
The benefit of finding liens before you make the offer gives you a chance to contact the lien holders and offer to settle the liens at huge discounts, thus creating a better profit potential and a better purchase price. Most other investors would run from these deals because of the liens; however, I could turn a bad deal into a good deal.
When I tell folks about doing their own title search, they say, “No, thank you; I want a professional to do it so I know for sure the title is good.” Let me explain: I do my own to see what’s owed to help me negotiate a deal with the owner. Then I get it under contract and the contract has a paragraph stating if there are any liens discovered after the contract is signed, the seller must settle those liens or the contract is null and void. Then the title company does a professional search and lets you know before closing if there are liens. Then they offer you title insurance. So, ultimately, you are protected with all these layers.
Today, in most states, you can do a title search online from the comfort of your home. There are only a handful that charge a fee, but if you go to the actual courthouse, you can always do it for free. If I am in a
state that charges for online title searches, I will go to the courthouse.
The way to find out if your courthouse is online, is to simply go to google, and put your county name first, then the state, then the words Register of Deeds. For example, “Fulton County GA register of deeds.” It is usually the first thing that comes up.
The further down the list you go, you will be tapping into third-party companies that charge money. Only click the first thing that pops up, then you will look for a button that says “Search Records.” Sometimes you have to accept a disclaimer before accessing the records.
Once in, you can search by parcel number or owner’s name. I like to search by owner’s name. Some liens are recorded against a person’s name and do not show up if you search by parcel number.
Each week when I go out and find off-market properties in the hidden market, I get so excited and can’t wait to get home and do a title search. It always keeps me a step ahead of the competition.
Tony Youngs is a national speaker, author, rehabber, trainer, and active real estate investor who takes you by the hand in your own back yard to teach you how to be good at finding good deals. He can be reached through his website at www.tonyyoungs.com.
