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Money411 P R I VAT E

WINTER 2017

“Successful Networking Can Be Exhilarating And Profitable.” - Leonard Rosen CEO Pitbull Conference

The

Alluring Art of Networking


Industry Leaders are Welcome as Our Guests at Our Financial Events, Join Us!

P R I VAT E

SUMMER ISSUE 2016

411

Celebrate Our Financial Supplement and Learn from the Top Leaders of Finance in California. Our publication will be hosting two important events in 2017.

Whether you are based in Southern or Northern California, you will have the opportunity to network, learn, and mingle with extraordinary finance leaders and speakers.


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Finance Conference

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Complimentary Real Estate Finance Summit

FREE Real Estate Finance Expo with BAWB

Network with the VIPs, Connect & Learn

Join Us in Pleasanton - The Leaders are Here!

Saturday, April 28th & 29th - 9 am IRVINE & LOS ANGELES - JOIN US!

Saturday, July 29nd - 9 am SAN JOSE - SILICON VALLEY

For information, visit REALTY411guide.com/events • 805.693.1497 • Please call us with any questions.

North and South California


Money411 P R I VAT E

Left: Discover how Carrie Cook with Ignite Funding helps investors earn steady cash flow on their capital. Cook, featured on page 18, also graces the cover of REI Wealth, our digital issue (http:// reiwealthmag. com).

CONTENTS 6

Real Estate Investing Elevates Our Communities

8

Bruce E. Dinger Educates on Private Finance

13 Entrepreneurs Find the Capital they Need 17 Up Close & Personal with Rob Barney Our publications feature the financial leaders of the industry.

18 Ignite Your Investment Performance 21 RealCap Delivers High Returns for Investors 24 What is Your Why? Investing and Motivation

Cover Feature for Private Money411: Leonard Rosen, CEO of Pitbull Conference, known as “The Most Interesting Man in Hard Money”.

27 Meet the CEO of Texas Pride Lending 39 Setting A New Pace in Funding Real Estate 48 REALTY411 Heats Real Estate Up in Florida

CONTACT US: 805.693.1497 or info@realty411guide.com Be social, look for our updates on Facebook, Twitter, LinkedIn, Pinterest, Tumblr, Google+ & more!

Mingle with our readers in Southern and Northern California at our complimentary events. Join us to celebrate our new issues and enjoy delicious delights. For more information, please see pages 2 and 3.

Important Disclosures for Our Readers: The information and presentations provided herein do not constitute an offer or solicitation to buy or sell securities or real estate. Please be aware that real estate investing can be risky. Realty411, the publisher of Private Money411, is not responsible for any information provided and/or statistical data presented, and does not reflect the opinions, advice or research by us. Readers are 100% responsible for their due diligence, for all investment information and for all decisions with respect to any potential investment or transaction. Publisher recommends readers seek the advice of a trusted attorney, broker, CPA and/or financial adviser before investing.

Join Us for National Events and Network with Active Investors, see pg. 43 Realty411Guide.com

PAGE 5 • 2017

Private Money411


Linda’s Letter

Real Estate Investing Elevates Our Communities

N

The foundation of each transaction is without a doubt the financing: No money, no deal. For this reason, we created our special supplement Private Money411, which focuses strictly on the economics of real estate. Gracing our cover this issue is a well-known personality in the private money arena. He is regarded in the industry as “The Most Interesting Man in Hard Money”. Leonard Rosen, CEO of the Pitbull Conference, has united the leaders of finance under one roof for nearly 16 years. His niche events are attended by those who want to network with private money players and powerful

othing makes an impact on a community like having a once neglected, run-down property transformed into a sprucedup, renovated home ready for a new family. The former eyesore is now a source of pride and beauty enhancing the neighborhood. Another real estate success story! It may appear like an easy process on the outside; however, a lot of hard labor goes into such a transformation. And behind the scenes, tons of negotiation, budgeting and planning goes into each rehab. No matter how easy it may appear on the outside, it’s not.

Realty411Guide.com

PAGE 6 • 2017

Linda Pliagas, Publisher

deal makers. Also in this issue are other important leaders, such as Carrie Cook with Ignite Funding, fund manager Bruce Dinger, Sarah Montes, CEO of Texas Pride Lending, Rob Barney with DHLC Mortgage, RealCap and more! I hope you enjoy reading Private Money411 and it expands your knowledge of the many opportunities in our industry. Thank you for reading, until next time!

Private Money411


FICO

2017

Realty411/1.17


What i s PRIVATE

LENDING? BY BRUCE E. DINGER

Realty411Guide.com

PAGE 8 • 2017

Private Money411


A

private money loan is a loan that receives a mortgage on the home along with other is given to a real estate investor, important documents. secured by real estate. Private Next stage is the property renovation. Once money investors are given a first the renovations are complete (typically 3-6 or second mortgage that secures months depending on the size of the project), the their legal interest in the properRR will list and sell the property. When it’s time ty and secures their investment. for closing, the lender receives his principal plus As real estate investors when we have isolated 10% interest payment. It’s just that simple! a home that is well under market value, we give The goal is to keep turning that money for the our private lenders an opportunity to fund the lender and keep them making substantial profits purchase and rehab of the home. Through that so they keep coming back – to build a long-term process, the lender can yield extremely high inmutually beneficial relationship. terest rates – four or five times the rates you can get on bank CDs and other traditional investment HOW THE LENDER BENEFITS plans. FROM PRIVATE LENDING Essentially, private money lending is a lender’s opportunity to become the bank, reaping the The private money lender (PML) can benefit profits just like a bank would. It’s a great way greatly from investing their capital. A real esto generate cash flow and produce a predictable tate mortgage/deed of trust provides them with income stream, while at the security instruments they would not get same time, provide excelwith other investments. The PML also lent security and safety for has added layers of protection because of Rehab Flip: 3-6 months your principle investment. how the RR buys, and because the PML You can do what the banks has recourse available in case the RR Wholesale Flip: 3-15 days have been doing for years… were to default on the loan. make a profitable return on Residential redevelopers currently investments backed by real estate. There is no pay four to five times what a typical bank CD other investment vehicle like it. is paying. Rates may fluctuate some, but not much, depending on the purchase price and rehab HOW THE PROCESS WORKS involved. The lower the price the RR pays for a home, The process is simple: The Residential Rethe RR can pay a little higher rate to make sure developer (RR) finds an extremely undervalued the lenders make it worth their time. Private lendproperty to purchase, and once lender gives the ing means the PML can relax while the money is green light, the RR borrows the funds to purchase in a truly safe place, working for them. and renovate the property. At closing, the lender Continued on Next Page

TYPICAL HOLD TIME:

- RISKS VS. REWARDS Sitting in Bank $100,000 x 1% interest 12-Month Term = $1,000 ROI

Real Estate Private Lending* $100,000 x 10% interest 12-Month Term = $10,000 ROI *Backed by Real Estate


Done correctly, equity is built in the purchase of the home, educated investors are buying 3040% below a retail buyer – that creates instant equity at purchase. Also, in a typical transaction, RRs cut out the middleman cost, such as: commissions, mortgage broker fees, loan fees, and attorney costs are also lower because there is less work for them to review. An experienced and educated RR is able to offer buyers a fully renovated home at or below everything else in the neighborhood. The goal is to buy right so you can attract a wide variety of PMLs for your project. Keep in mind: RRs make money when we BUY. HOW PRIVATE MONEY HELPS AS A RESIDENTIAL REDEVELOPER (RR) Private money lenders bring speed and efficiency to the RR’s transactions, and their leverage is far greater when they purchase using private cash funds. Many of the homes purchased are in need of a quick sale, within 10 to 14 days. A traditional bank requires 30 to 45 days to close a loan. Many traditional home sales fall out of contract because of financing issues. Using quick cash as leverage allows the RR to negotiate a much lower purchase price and reduce risk. Being able to offer a fast closing with private

funds motivates sellers to take the RR’s offer over the competition, and entices them to take a much lower price than they would from a conventional buyer. Also, lending guidelines are also continually changing and are requiring applications, approvals, junk fees and strict investor guidelines. They also limit the number of investment properties that can be purchased by one company. On a new home purchase requiring renovations, private lender funds will be allocated to the purchase price, renovations, carrying costs, cost to resell and a small buffer for unexpected expenses. PROTECT YOUR LENDERS Mortgages offer the banks solid, long-term, fixed returns. The PML can put themselves in the position of the bank by directing their investment capital, including retirement funds, to well-secured real estate mortgages. Mortgages have ultimate safety because if default occurs, the bank can recover its investment as the first lien holder on the property. Each property acquired should be put through a rigorous evaluation process in order to assess the profitability before the property is ever purchased. “lntegrity” should be an essential part of the

OVERVIEW OF THE PRIVATE LENDING PROCESS Private Lender Funds the Deal

Repeat the Process

Lender Receives Documents Securing the Loan

Lender Receives Principal + Interest

Home is Renovated

Home Is Purchased

Home Is SOLD!


OVERVIEW OF THE CLOSING PROCESS

The PML will be named as a mortgagee and notified if the insurance was not kept current. In the event of any damage to the property, insurance distributions would be used to rebuild and repair the property or used to repay the PML.

Title Company Or Attorney Finalize Closing Documents

Lender’s Funds go into Escrow with Title Company or Attorney

ABOUT KENNSEI TRADING, INC.

Lender Receives Original Promissory Note, Copy of Mortgage Deed of Trust, Insurance Policy

B

Mortgage or Deed of Trust Filed at Courthouse

RR’s business. Also, for the PML’s protection, the PML should be provided these documents to secure their investment capital: • Promissory Note: This is the PML’s collateral for their investment capital • Deed of Trust/Mortgage: The document that is recorded with the county clerk and recorder to publicly secure their investment against the real property that the RR is providing as collateral • Hazard Insurance Policy: The private lender would be listed as the “Mortgagee” for their protection in case of fire or natural disaster, etc. The RR would pay for a title search as well as a title policy on the home just as would be done in a typical transaction. For a rental investment with a long-term note, the RR always keeps a valid hazard insurance policy on the property to protect against causalities.

ruce E. Dinger is an Investment Advisor for private qualified clients and also a world-class educator in the stock and options market. Be sure to register for his live webinars or upcoming events at http://KTCashFlow.com Dinger has spoken on some of the largest stages around the globe, including The Women’s Financial Conference, Rich Dad’s, On-Line Trading Academy, Success Resources, and many others. A regular media contributor, he is a regular source for CNBC, BusinessWeek, and Success Magazine. He has one of the best reputations in the financial markets for helping students achieve their goals of becoming an independent trader or investor. Kennsei Trading Inc. is a registered investment company specializing in building wealth through the financial markets, including the stock and equity markets and the real estate market. The firm is led by CEO Bruce E. Dinger, who has over 20 years experience as an investor. Kennsei Trading Inc. has an extensive network of private money investors and understands the thought process of a savvy investor and what they look for in any investment prior to the deployment of their capital.

PML ARE MAKING A 10% GREATER RETURN ON THEIR MONEY! Real Estate Private Lending

Stock Market Completely Unsecured

Secured by Deed of Trust of Mortgage Deed

Completely Uninsured

Collateral is Fully Insured

Invest at Market Price

Collateralized Below Market Value

Returns Are Unknown

Returns Are Fixed and Agreed Upon Term

Realty411Guide.com

PAGE 11 • 2017

Private Money411


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his is a great time to be in the house-flipping business. The number of investors who flipped a house in the first nine months of 2016 reached the highest level since 2007. About one-third of the deals were financed with debt, a percentage not seen in eight years. Investors are making an average profit of about $61,000 on each flip, up from about $19,000 at the bottom of the market in 2009, according to housing research firm ATTOM Data Solutions, which is the parent company of real-estate website RealtyTrac. The calculation measures the difference between the housing value when an investor purchases the home and when it is sold. There is a constantly moving “conveyor belt” of opportunities in front of today’s business owners, entrepreneurs, and real estate investors. The catch is that “you need the money to take advantage of those opportunities, and good deals simply won’t wait for you to find the money.” THE BIGGEST PROBLEM YOU FACE TODAY The most pressing issue on the current landscape isn’t a lack of deals; the biggest problem facing business owners today is a lack of access to capital. The data shows that most businesses fail because they just run short of cash. They can no longer pay the bills, push out great marketing, or seize the best opportunities. Some fail because they don’t appreciate their need for funding, or how much they need. Others are stuck with rigid fund-

The data shows that most businesses fail because they just run short of cash. They can no longer pay the bills, push out great marketing, or seize the best opportunities. Realty411Guide.com

ing sources and arrangements that don’t serve them well, or simply haven’t found an attractive source of financing. Ultimately the main source of failure is all about the money. I know the challenges these entrepreneurs face well. As a business owner for more than 30 years, I understand the pitfalls small businesses have in having access to capital, which is critical for their success. Before I started Stonebridge Capital in 2006 I was involved in several industries, including manufacturing, healthcare, restaurants, real estate, oil and gas investments, and entertainment. Over the last decade the Stonebridge team has been working with hundreds of entrepreneurs, investors, and business owners to help them recognize their need for additional capital, position themselves to obtain the best funding, and obtain generous lines of credit. THE UNSECURED LINE OF CREDIT ADVANTAGE Stonebridge Capital specializes in providing business and personal lines of credit from $10k to $150k. The two most often asked questions I receive are: 1. What determines how much funding a borrower will qualify for? We work with a pre-approval calculator, with algorithms based off banking qualifications, for predetermined approval amounts. The pre-approval calculator analyzes customer’s three bureau credit reports, which we “soft pull”. In a matter of minutes after you enter our website and order your credit reports. Next, you will be emailed your pre-approval with amount of funding you qualify for within minutes of ordering your credit reports. 2. How is one’s credit affected by the lines of credit? Obtaining new credit lines does not necessarily affect someone’s credit; it may even >

PAGE 13 • 2017

Continued on pg.54

Private Money411


Feb 28th


UpClose

FINANCE

with Rob

Barney

R

Rob Barney, president of DHLC Investments, Inc. and owner of DHLC Mortgage, LLC, has been involved with real estate and real estate financing since 1998 when he bought his first investment property. Since then Rob has become a REALTOR®, rehabber, landlord, speaker, mentor and a direct hard money lender. Barney is a frequent guest lecturer at Collin County Community College and Champions School of Real Estate. He is also a published author of several real estate investing articles in various print periodicals and online publications. Question: How long have you lived in Dallas, Texas area? Answer: For over 25 years.

A: About $2 to $3 million per month on average. Q: How many homes have been transformed in Texas due to DHLC’s services? A: We estimate that about 750 homes have been rehabbed by real estate investors using loans from DHLC Mortgage.

Q: How many loans have you closed in total? A: Over $100 million since 2001. Q: How many loans do you fund in a typical year or month? Realty411Guide.com

PAGE 17 • 2017

Q: How many homes have you personally flipped? A: About 12 so far. Q: What do you like best about the lending services business? A: It gives me the opportunity to help other people achieve their dreams too. Continued on pg. 54

Private Money411


Ignite Your

INVESTMENT

Performance Still looking for better investment performance? How does $1M in tax-free returns sound?

S

BY TIM HOUGHTEN

ecuring a strong investment yield is top priority for all investors. Of course big promises alone can’t be the single driving force behind investment decisions. Otherwise, we’d all be off to the casinos in Vegas to go all-in on every next roll of the dice, and financial planners would be out of business. Returns are important, but so is diversification, tax planning, and finding sustainable investments. THE SEARCH FOR SOUND INVESTMENTS Finding sound, profitable investments and enough of them can be challenging. Some have diverse stock portfolios, yet really have no idea what to expect from their performance. Many have added owning a home to their assets, and hope to gain from equity growth as they pay down their mortgages. Some take this further with direct investment in rentals. Rental homes can provide similar benefits to homeownership, but can also bring significant time demands and expenses. Then there are REITs, which promise ease of investing, but provide no collateral and present the same high volatility risks they are exposed to in other stocks. Then there is trust deed investing. This may also

be called “note investing” or private lending. This is a sector loved by sophisticated individual investors and institutional investors for its simplicity, strong collateral, and of course, the yields. These are the types of investments, which have made the likes of Warren Buffett, Sam Zell, Blackstone, and Bank of America very wealthy. Carrie Cook, president of Ignite Funding, says it’s entirely “possible to invest $100,000 at 10% in mortgages for 25 years, and reap $1M in tax-free returns.” IGNITE FUNDING DELIVERS PERFORMANCE Nevada-based Ignite Funding specializes in exactly these types of investments. Ignite Funding offers qualified investors the ability to participate in their success by funding high-quality borrowers in the real estate space. Trust deed or mortgage investments provide cash flow, above average yields, and the security of being backed by tangible real estate collateral. The firm has been providing these elite investment opportunities for 21 years. Some big funds and new note brokers have recently made this space popular in heralding the benefits of investing in distressed debt and non-performing existing loans. In contrast, Cook


These are the types of investments, which have made the likes of Warren Buffett, Sam Zell, Blackstone, and Bank of America very wealthy. explains that Ignite focuses on issuing new capital to strong builder developers with great track records. Specifically, the firm’s president explains that they carefully curate “a pool of highly-prized borrowers who have been in business for at least 10 years.” In fact, this lender-broker does not even operate a borrower-facing platform. They seek out those they see are the most qualified. If builders do find them, Cook says they “accept only around 20% of the requests received.” The funds are used for acquisition, development, and construction, and target a 10% to 12% annualized return to investors. THIS IS NOT WELLS FARGO Among the refreshing differences that investors will find at Ignite Funding is a serious dedication to sustainability and transparency. Those are words that are easy for companies to spout out these days to capitalize on trends. But this company proves it by really putting the information out there. Other CEOs, especially in this male-dominated field, might deem some of this transparency clearly unnecessary and going too far. Yet, it is clearly in favor of the investors, as it holds their asset manager to a high standard and ensures they are working hard to deliver the best results today and over the long term. Some of the ways you’ll see this displayed via the firm’s website include a calendar of deals being funded, five years’ worth of detailed performance documentation, and even information on defaults. That’s right; no matter how diligent and careful you are some loans will default. Some big banks have become infamous for how they hide this information for so long. Not here.

Carrie Cook’s team clearly displays any default information, along with the cures. The data is encouraging too, with the company recouping over 100% of investor capital even in some of the worst performance cases displayed. Cook credits this success not only to the investors and borrowers involved, but her team’s attitude of being willing to “run into the fire, not from it,” as well as the consolidated approach of completely in-house operations from origination to servicing and loss mitigation. Ignite Funding has been featured on Modern Living with Kathy Ireland and Bloomberg Television. WHO IS INVESTING IN TRUST DEEDS? In addition to the very visible and notable examples of big funds and billionaires who invest in this asset class, there are a growing number of private individuals who are experiencing great results here. Ignite Funding accepts a minimum investment of $10,000, though Cook says “around 75% of clients are using their IRAs to invest,” which means they can invest a lot more. However, one of the best features here is that while adhering to Nevada’s strict sustainability standards, this type of collateralized investment is open to those earning just $70,000 or more each year, providing they are not investing more than 15% of their net worth. For those interested in learning more about trust deed investing, how Ignite Funding protects its clients with multiple layers of security, and who want to soundly diversify their portfolios find out more online at http://IgniteFunding.com

Disclaimer: Money invested through a mortgage broker is not guaranteed to earn any interest and is not insured. Prior to investing, investors must be provided applicable disclosure documents. Ignite Funding, LLC | 6750 Via Austi Parkway, Suite 230, Las Vegas, NV 89119 | P 702.739.9053 | T 877.739.9094 | F 702.922.6700 | NVMBL #311 | CACFL #603J286 | AZ CMB #0932150 and AZCMBBR #0121055. Realty411Guide.com

PAGE 19 • 2017

Private Money411


Tim Soto

BY TIM HOUGHTEN

Matt Schuberg

Blending trends in real estate crowdfunding and the need for sustainable cash flowing properties, RealCap offers investors a new opportunity for putting their capital to work. >

Realty411Guide.com

PAGE 21 • 2017

Private Money411


FEATURE

RealCap Brings New Real Estate Sector To Crowdfunding R

eal estate crowdfunding has been growing at an incredible pace thanks to increased awareness of the option and ease of investment it offers. This is a trend only likely to surge this year, as the Wells Fargo scandal plays out, and investors seek safer and more profitable places to put their money than the old banks. So far, much of this action has been focused on the residential sector. RealCap brings something new to the table. Real estate may still be the best investment option on the landscape, but it is no secret that some questions about the sustainability of home price growth and affordability have been emerging. Overall sensible investors are still seeking sound investments where their capital will be safe, and which provide attractive yields, with a great outlook for ongoing performance. RealCap’s founders Tim Soto and Matt Schuberg believe they’ve found the ideal fit in self storage. Self storage may not jump out at most investors as the most prestigious asset to brag about to their friends at dinner, but Matt and Tim are bullish on its advantages. No one wants to be caught holding residential at the top of the market. And we’ve already been hearing about excess inventory and slumping sales in some destinations, while other areas are feeling intense competition, which keeps driving housing prices sky high. Matt Schuberg points out that “the self-storage sector

Realty411Guide.com

With RealCap investors can get started with as little as $10,000, and benefit from being invested alongside other savvy investors, and an experienced management team who is invested in their success too. remains under supplied, even with 3,000 potential new developments on the horizon nationwide.” Less competition in this sector also means more value to be found, and “returns that can be as high as 8% to 15% per year.” Self storage is also one of the few recession resistant sectors, which can often perform even better in tougher economic periods. When foreclosures are up and more people are moving they need storage more than ever. In spite of the popularity of reality TV shows showing the auctioning off of the contents of some of these units in default, Tim Soto says that in their experience default rates are very low as people really want to preserve their belongings. And it’s clearly a lot easier for a tenant to find $50 a month to keep their prized possessions and heirlooms versus $2,000 a month for a mortgage payment. Low management burden is another great perk of this asset class. Now with the ability to partner with others via crowdfunding the risks and demands of investing are even lower. With RealCap investors can get started with as little as $10,000, and benefit from being invested alongside other savvy investors, and an experienced management team who is invested in their success too. RealCap invests alongside its clients in every deal to ensure motivations and interests are aligned.

PAGE 22 • 2017

Private Money411


However, where the RealCap team really makes a difference appears to be in its diverse and creative arsenal of value­-add options. In one recent deal in California the team acquired an undervalued facility, and within three months had increased occupancy by around 20%. Then Tim Soto explains they dug in and improved cash flow by challenging the tax assessment and cut the tax bill by 70%. They optimized the insurance premiums, and have been leveraging extra acreage on the parcel by adding solar ports to create more income, and are looking at leasing space for cell towers. Together the executive team brings together an immense amount of experience and disciplines. Tim Soto has been involved in real estate investment since 1995 and credits much of the success to the organizational and team skills developed during his service with the Marines. CEO Matt Schuberg comes from a background as a financial advisor. Though after becoming disappointed in the stock market world of vast diversification, with little real security or solid performance expectations among brokers and clients, he found he could best serve others through offering solid real estate investments. RealCap provides a Regulation D-filed investment opportunity for accredited investors seeking cash flow and attractive sustainable yields. Find out more online at http://RealCapInvest.com or simply call to have a conversation to get the details and see if crowdfunded self-storage is for you.

CONNECT WITH US! JOIN OUR POPULAR GROUP! Retire Early with Real Estate

EXPERIENCE

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DIFFERENCE STABILITY & SUCCESS 23 YEARS - MULTI-PUBLICATIONS

Our history in national magazine publishing dates back 23 years. We have successfully published both local and national magazines in a variety of industries. EXPERIENCED REAL ESTATE ADVISOR Our real estate business has been licensed for over 16 years, and is responsible for referring millions of dollars worth of realty transactions to national brokers. PHENOMENAL VISIBILITY & EXPOSURE Our organic social media following is the largest in our industry - we do not pay for “likes”. Our company is led by the publish-

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er with the largest online popularity in our

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PAGE 23 • 2017

Private Money411


WHAT

IS YOUR

WHY? By Grant Trevithick

Are you interested in becoming a real estate investor? Do you want to be your own boss? Do you desire to keep all of the fruits of your labor for yourself, instead of making some company or someone else rich? Do you want the freedom of owning your company, working whenever you desire? Most of us have watched the TV shows of other people buying and flipping houses. It is amazing to see that someone can search an entire city, find the property they want, do the research to determine what the offer should be, negotiate the deal to purchase the property, secure the financing, close on the purchase, prepare the repair budget, do all the repairs, market the property, find the buyer, negotiate with the buyer, and negotiate all the requirements to finally get to the closing table. It is amazing that each of these in-

?

vestors do all this in only 50 minutes, with three to four commercial breaks, and always seem to make a lot of money out of each house.

After all, I can make as much money as I make in a year doing three to four houses, at least according to the television shows.

Wow, if it were that easy, I would want to jump into the game as well. It surely would beat having to get up each day and head into an office, attend meeting after meeting, make nice with an incompetent boss, do all my work, and then go home and do the same thing every day for the rest of my life. That does not sound like fun‌ so perhaps we can escape this trap by being a real estate investor.

WRONG!

The reality is there are two types of real estate investors: the normal real estate investor and the successful real estate investor.

Realty411Guide.com

Virtually every real estate investor that I have ever met only talks about the glamorous part of the business. They only talk about how much money they make and how much fun they are having. First off, most of the ones that do the talking are the ones that have never bought or sold a house, at least according to my experience. The reality is there are two types of real estate investors: the normal real estate investor and the successful real estate investor. The normal investor attends a lot of classes and reads many books. >> Continued on pg. 26

PAGE 24 • 2017

Private Money411


HOW TO EARN MORE THAN 100% PROFIT ON EACH HOUSE

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What What is is Your Your Why? Why? Investors Investors Contemplate Contemplate Life, Life, pg. pg. 24 34

online. They may even sign up with one of the local or one of the traveling mentors / gurus. They attend allot of the networking groups for investors. They may look at several properties, but have never pulled the trigger to actually buy one. They talk a good game, but are more of the posers than the doers. Then you have the 1%. Yes, only 1%. The statistic that I heard many times is that the top 1% of all real estate investors make 98% of the money. My experience proves this out. We have trained thousands of people, while we have one of the industry highest success rates for those that have attended our training (allot of our students ended up buying houses), yet very few of them have the dedication that is required to truly be successful. To be a successful investor, you must know What Is Your Why? Why do you want to become an investor? Are you doing this to escape a boring and a mundane life? Are you doing this just to become rich? Why do you think that you want to be an investor?

put 30,000+ miles on your car / truck each year? Are you willing to work when it is 105 degrees in the summer? When it is thundering and raining? How about when it is 5 degrees and snowing? Or icing? Are you willing to clean out dirty nasty houses? Dealing with flea and bed bug infested houses? Drug houses? Are you willing to clean dirty kitchens, with food left over for weeks or even months? Scrub toilets that are just plain nasty and disgusting? Are you willing to listen to the most heartbreaking excuses and still ask someone to get out of the house? Are you willing to spend thousands of dollars on lawyers taking houses back when the seller uses the law to avoid paying their mortgage payments and yet do not want to move out? Are you willing to be discouraged, wonder if you will ever buy and or sell another house again, feel like a total failure? And still get out of bed each morning and do what has to be done?

Are you willing to work hard? Are you willing to work 6 days a week, and sometimes 7? Are you willing to work on the holidays? Are you going to be available to do business whenever your clients are ready? (My definition of an entrepreneur is someone that is willing to work 100 hours a week so you do not have to work 40.)

Funny, they do not show that part of the business on television, do they? If you cannot answer, “absolutely, sounds like fun” to each one of these, then real estate investing is not right for you. If you can think of anything else to do that would allow you to reach your goals, then my best advice is forget being a real estate investor and pursue that other avenue. If, on the other hand, you cannot imagine doing anything else, then perhaps you might have what it takes to be successful.

Are you willing to fail more times than you succeed? Are you willing to be discouraged and disappointed? re you willing to spend hours and hours in your car each day? Leaving early in the morning and get home late in the evening? Are you willing to

Real estate investing is a marathon, not a sprint. If you do investing right, it is not a get rich quick scheme. Working our model, you can become a millionaire in a short period of time, if you are willing to work hard enough and run the business in an honest

Realty411Guide.com

PAGE 36 • 2017

manner. But only if you know your Why. And only if your Why is strong enough. For me, I love helping people. In our company, our first and primary goal is to always put our clients first and do whatever we can to help them. We buy houses that people are trapped in, giving them the financial freedom move on without the burden of their mortgage. We then sell those houses to good families that desire to have a part of the American Dream, owning their own home, but cannot get a mortgage from a bank (for whatever reason). We help investors by realizing their dreams of becoming a successful investor. And last but not least, we donate the first ten percent of all our profits to charity to help those less fortunate. That is my why. That is what yanks me out of bed every morning, excites me to make each day as full as I possibly can, with me ready to contribute and help as many people as possible. Of course, along the way we make enough money to become financially comfortable, but our Company never makes money our number one priority. And I think that is what makes us successful. What is Your Why? Grant Trevithick, after a successful career in EDS and AT&T, is now the owner of Owner Finance Homes LLC and Owner Finance Academy LLC. Owner Finance Homes LLC operates throughout the Dallas-Fort Worth area in Texas, buying houses and selling with owner financing. Owner Finance Academy trains people to become real estate investors using owner financing. The Company is accredited by the Better Business Bureau with an “A+” rating.

Private Money411


Meet the CEO Sarah Montes BY TIM HOUGHTEN

Owner financing just got easier, safer, and more profitable for real estate investors.

uct and geographical expansion plans. While Texas Pride provides a variety of financing assistance, it’s main focus is as a seller finance specialist delivering Residential Mortgage Loan Originator services to investors. So why do you need them?

S Sarah Montes, an RMLO with over 10 years experience, specializes in owner finance originations, keeping investors compliant through the process of an owner finance transaction. Sarah Montes is a Dodd-Frank expert and an owner finance specialist. If you are buying or selling with owner financing, it is extremely important to be compliant. In order to do so, you are required to use a licensed RMLO to originate the seller finance mortgage to be compliant with the Dodd Frank Act. Texas Pride Lending is today’s premier RMLO service to investors! Built and run by RMLO’s that have taken the time to read all the regulations, Texas Pride Lending will make your owner financed transaction smooth and compliant.

Realty411Guide.com

eller financing can be both one of the most profitable and risky parts of investing in real estate today. Texas Pride Lending is in business to ensure that investors get to enjoy more safety, efficiency, and profit when they engage in owner financed deals. In an exclusive phone interview with Sarah Montes, the company’s executive director, Private Money411 gained new insights on how the firm can help you offer seller financing with confidence, and stay in compliance.

STAY COMPLAINT Sarah Montes says that many investors simply aren’t aware that new rules require them to use a RMLO to provide private financing. That could be setting many up for legal and financial disasters. An RMLO is a licensed originator who ensures that all required disclosures are provided to the buyer, and that paperwork is in order to keep investors compliant with current laws. These services include requesting and verifying buyer income information and ability to repay, as well as completing a full underwriting package. Investors are able to leverage these services for a modest flat fee, and Montes quotes past clients who have said they have

TEXAS PRIDE LENDING Texas Pride Lending has been assisting investors for 10 plus years. Originally founded by Grant Kemp, and now headed up by Sarah Montes. Kemp remains on staff, and continues to be a great value-add partner and consultant to the company’s clients. Today, Montes is heading up RMLO services and new prod-

PAGE 27 • 2017

Continued on Next Page

Private Money411


found their privately originated mortgage notes worth far more with the documentation provided. Whether investors plan to resell notes or not, it is valuable to have a great package to present to note buyers in case of the desire to sell later on. THE TEXAS PRIDE LENDING DIFFERENCE While there may be very few firms operating in this space, Texas Pride differentiates itself by focusing on fast turn times, and additional value-add services. Montes says it can take as little as 24-48 hours to have a completed file. As well as being founded by experienced investors, the company has strong connections with other seller-financing experts like Scott Horne. Real estate and title attorney Scott Horne has been involved in thousands of Texas transactions. Horne, Kemp, and Montes all present a veteran power team who help consult both new and experienced investors on offering seller financing, and how best to market and navigate the opportunity. Clients also benefit from referrals to reputable loan servicers to enjoy compliant and efficient servicing.

WHAT’S NEXT Texas Pride Lending sees big ongoing opportunity in this space and has plans to go national over the next few years. That begins with expanding into the Carolinas in 2017. On her forecast for what a Trump White House means for the industry Montes predicts higher interest rates coming. With this in mind she advises clients to avoid balloon mortgages and to consider ARMs, which can allow investors the ability to maintain profitability and offset their own rising cost of money. Looking forward the firm also plans to begin introducing clients to a variety of credit sources, private lenders, and lines of credit so that they can empower borrowers to refinance, as well as fueling their own acquisitions. Find out more about Texas Pride Lending and RMLO services online at: http://TexasPrideLending.com.

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EQUAL HOUSING OPPORTUNITY. BROKER PARTICIPATION WELCOME. ORAL REPRESENTATION CANNOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATION OF THE DEVELOPER. FOR CORRECT REPRESENTATION, MAKE REFERENCE TO THE DOCUMENTS REQUIRED BY SECTION 718.503 FLORIDA STATUTES, TO BE FURNISHED BY THE DEVELOPER TO A BUYER OR LESSEE. NOT AN OFFER WHERE PROHIBITED BY STATE STATUTES. ALL ILLUSTRATIONS ARE ARTISTIC CONCEPTUAL RENDERINGS AND ARE SUBJECT TO CHANGE WITHOUT NOTICE. PRICING SUBJECT TO CHANGE. (I) THE SPONSOR AND PRINCIPAL(S) TAKING PART IN THE PUBLIC OFFERING OR SALE ARE NOT INCORPORATED IN, LOCATED IN, OR RESIDENT IN THE STATE OF NEW YORK: (II) THE OFFERING IS NEITHER MADE IN THE STATE OF NEW YORK NOR MADE TO RESIDENTS OF THE STATE OF NEW YORK; (III) THE OFFERING IS NOT DIRECTED TO ANY PERSON OR ENTITY IN THE STATE OF NEW YORK BY, OR ON BEHALF OF, THE OFFEROR OR ANYONE ACTING WITH THE OFFEROR’S KNOWLEDGE; AND (IV) NO OFFERING OR PURCHASE OR SALE OF THE SECURITY SHALL TAKE PLACE AS A RESULT OF THIS OFFERING, UNTIL ALL REGISTRATION AND FILING REQUIREMENTS UNDER THE MARTIN ACT AND THE ATTORNEY GENERAL’S REGULATIONS ARE COMPLIED WITH; A WRITTEN EXEMPTION IS OBTAINED PURSUANT TO AN APPLICATION IS GRANTED PURSUANT TO AND IN ACCORDANCE WITH COOPERATIVE POLICY STATEMENTS #1 OR #7; OR A “NO-ACTION” REQUEST IS GRANTED. TO LEARN MORE ABOUT THE GROVE’S STANDARD RENTAL PROGRAM AND DEVELOPER LEASEBACK PROGRAM, PLEASE CONTACT KATIE TULLY WITH BENCHMARK HOSPITALITY AT KTULLY@GROVERESORTORLANDO.COM


The

Alluring Art of Networking

N

Realty411Guide.com

By Leonard Rosen

etworking at events can be exhilarating and profitable when you know the important elements to creating meaningful relationships. For over 35 years, I have personally witnessed the best of the best and the absolutely worst networking possible. I have learned a tremendous amount of information in regards to the concept and technique of creating powerful connections. PAGE 32 • 2017

Private Money411


You only have so much time... Think about it, if you go to a networking event that lasts four hours, you can only speak to a a limited amount of people. If each interaction lasts 20 minutes, that’s three people per hour. In the scenario I pose, that gives you about 12 people to speak to. Think about it, thats only 12 people in a four-hour event. That’s assuming there is no down time between each interaction. In reality, you probably only have nine to 10 people to connect with. The key to networking is time management. Spending time with someone who cannot further your objective is fruitless. So, begin by speaking to people who can actually help you further your business interests. The issue that I observe is that most people who are at networking events are most concerned with talking about themselves. Why people do this is something I have never been able to understand. Remember, you only have time to speak with nine to 10 people. First, never speak about yourself, but rather ask questions of your connection. Your connection will tell you very quickly what they do, how they do it, and if there is a fit for a relationship to develop. When I meet a new connection, I ask questions. This enables me to determine if this connection is aligned with my business model. Obviously, you would not spend time with a buyer of a BMW, if they are looking for a Toyota. I spend a total of three minutes with a new prospect. I call this my “three-minute rule”. If after three minutes of asking pertinent questions I determine the prospect is a possible fit, I continue to do my fact finding. This allows me to spend my time wisely. Remember, people love to talk about themselves; they will provide you with all the information you

Meet The Most Interesting Man In Hard Money By Tim Houghten

L

eonard Rosen is the CEO of the Pitbull Conference, and one of the most respected men in the money business. When one meets Rosen, one can’t help but wonder if his persona could have been coined to create the hit-series Dos Equis commercials, which claim to feature “The most interesting man in the world.” Yet, there is a lot more to this financial guru than could be crammed into a short TV commercial. Leonard is certainly a sophisticated guy, and there’s a lot more to him than most probably realize. He is actually one of the most popular professionals on LinkedIn; he has almost 24,000 connections. He attended the Shattuck Military Academy until 1974, and and won the Brazilian Jiu Jitsu Championship in 2012. If you haven’t caught him in the news yet, you’ll discover he is both a frequently called upon market analyst and media maker. He has been a talk show host on The Financial News with Leonard Rosen, a contributor to NBC’s Newsvine on the topics of real estate syndication and private equity funding, and a news anchor for the Financial News Network. >

Continued on pg. 34 Realty411Guide.com

PAGE 33 • 2017

Continued on pg. 34

Private Money411


The Alluring Art of Networking, pg. 33

NEW YORK Real Estate Expo 10.14.2017

need very quickly. If after 3 minutes, I determine we aren’t going anywhere, I politely excuse myself, provide my business card and move on. So why do I say that networking is alluring? It’s sexy because when you cultivate a good prospect and develop a business relationship, where there is commerce that is actually engaged, I find this very thrilling. The reason being is because you had a plan, then executed the model and money was exchanged in some form. How exciting is that? Remember, if you want the thrill of excitement and want to do business: Ask questions, manage your time, and stay away from time wasters. The Most Interesting Man in Hard Money, pg. 33

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Realty411Guide.com

When he isn’t in the air traveling or producing on the air, you might find The Most Interesting Man in Hard Money gracing the stage or lounge of one of the world’s most beautiful hotels in South Florida or Las Vegas. What Rosen is most famous for though is the incredibly popular Pitbull Conference. These industry events have attracted thousands of lenders, investors, and innovators to learn from this man and grow their ventures. At these events you’ll learn about hard money lending, private placement offerings, Reg. D filings, private money financing, commercial mortgages, and various securities offerings. Perhaps most notably you’ll learn a whole lot about the emerging trends in real estate finance, get to network with many prospective borrowers and lenders, and it’s the best place to get a chance to meet the man himself. The Pitbull Conference is a serious event where you’ll find great promotions, live radio broadcasts, video recording, top-notch speakers covering an array of relevant topics, and a crowd ready to do real deals. As beneficial as these events are, the Pitbull Conference is only the tip of the iceberg of the value Leonard Rosen brings to the table. Above all, he is not only an educator and market maker, but a connector. He connects investors with the money, and the money with investors to create serious win-wins. Beyond being a speaker, the Pitbull also offers strategic marketing help and private consulting for funds, lenders, and real estate startups. Just make sure you wear a suit when you show up.

PAGE 34 • 2017

Private Money411


STRATEGY

Setting A New Pace In Funding Real Estate Investments

As the real estate market continues to evolve, investors have needs for new programs and features. Sophisticated investors are also more adamant than ever about finding time-tested, long-term finance partners. For many, the answer may be found at Barnett Real Estate Investment Finance. The U.S. property landscape has changed significantly over the last 15 years, and is still morphing every month. Changes in asset prices, inventory levels, competition, interest rates, finance options, and more have altered what investors and the

Realty411Guide.com

ARTICLE BY TIM HOUGHTEN

market needs. There have been new lenders, funds funneling their capital into new conduits, masses of foreign capital, and private lenders entering the market. Yet, not all investors have found the right match or the most desirable processes and terms at their disposal. Others have simply lost faith in large, traditional institutions. Still, the pressure and appetite to take advantage of current and coming real estate opportunities may never be greater. Barnett REI Finance may be the answer to this, for many. THE INSIDE STORY Barnett Real Estate Investment Finance manager Vincent A. Pace gave us the inside scoop on the exciting new programs the company is rolling out, and the features that are making the firm a popular choice among investors. Barnett REI Finance is a Barnett Capital portfolio company, and Barnett Capital is a family-owned real estate and finance firm founded in the ‘80s. The fact that it not only survived the big dip that put some of the world’s most established financial houses out of business, but is thriving and growing says a lot. When other sources of credit and capital dried up investors found Barnett Capital. The firm made good loans, and has continued to expand its offerings. Expanding from its original focus on commercial real estate, the company found overwhelming demand for loans on real estate investment properties that has resulted in the doubling Barnett REI Finance’s business each calendar year since 2013. >

PAGE 39 • 2017

Private Money411

Image: Jansucko, 1234rf.com

Barnett Real Estate Investment Finance is opening up new growth opportunities for property investors.


Barnett REI Finance is primarily an asset based lender focused on short term loans (12 months), and lines of credit. However, in our interview Vince Pace pointed out several unique and magnetic features, which stand out on the lending landscape. • No recent deal requirement for flippers and rehabbers who may be returning to the market after a break • Ability to finance portfolios of lower value units nationwide • New construction loans with up to 85% of total cost in select markets • Lines of credit on existing free and clear properties • Liquidity-based credit lines MORE REASONS TO LOVE BARNETT REI FINANCE Pace tells us that the construction program normally offers a “two-day inspection,” for draws in most markets, which can give builders a substantial time and cash flow advantage. Barnett’s financing is typically interest-only, allowing investors more flexibility, until they exit or obtain permanent financing. That interest is only paid on the active portion of the debt, not the total line or loan. Lines of credit typically give investors access to capital on a roughly 1:3 ratio. So if you have $250,000 to work with, Barnett would typically extend approximately $750,000 in credit. Personal credit is also rarely a factor, “unless related to your planned exit.” For example: you plan to get a personal loan or mortgage on an income property. What’s really cool is that Barnett does not charge points. That means a lower APR, and cheaper cost of money for investors. These commercial-style loans may even get from application to closing in as little as “two days with a very responsive borrower.” Barnett is also open to a wide variety of property types. That may be renovating a historic house, an industrial space, or taking over and completing new construction providing you’ve Realty411Guide.com

Six Loan Products from Barnett Capital 1. Short-term financing for flipping houses, and stabilizing income properties 2. Equity release from existing portfolios of properties 3. Construction loans, including new construction 4. Auction financing 5. Lines of credit for investors 6. Loans for foreign nationals got a “weather-proof box.” Looking ahead Vincent says the company is confident in its loans and profitability for investors. While they may not be planning any more extreme reduction in borrowing criteria, he says they do not see any need for tightening lending in the near future either. THE TEAM Barnett REI Finance has an extensive team. Joel Barnett, as chairman and president of Barnett Capital, sets the overall strategy for Barnett REI Finance and all other Barnett Capital portfolio companies. Ken Fixler serves as chair of Barnett REI Finance’s credit committee and brings his experience in building and renovating hundreds of single-family homes as the head of Barnett Homes. Elan Peretz, general counsel and managing director of Barnett Capital, also serves on Barnett REI Finance’s credit committee. Vincent Pace manages Barnett REI Finance, and is also part of Barnett Capital’s in-house legal team. Vincent found himself at Barnett after practicing securities law for major international law firms in Tokyo, New York, and Beijing. He holds multiple degrees earned both in the U.S. and abroad. As one of the firm’s multilingual staff he speaks Japanese, Chinese, Portuguese, Spanish, and English. Find out more about Barnett REI Finance’s loan programs or submit an application online at: www.barnettcapital.com. PAGE 40 • 2017

Private Money411


Realty411Guide.com

PAGE 32 • 2016

Private Money411


QUEEN OF CAPITAL & REALTY411

SPREAD HOLIDAY CHEER!

On December 13th, Realty411 Magazine, Holly Lynn, (a Bay Area investor known as the Queen of Capital), BAMF (the Bay Area Multiple Family Meetup), New York Life, and motivational speaker Christy Tu hosted a holiday toy fund-raiser at The University Club, which sits on top of the hill of Powell street in San Francisco. The spectacular social attracted hundreds of investors from throughout Northern California. To receive an invitation to our next mixer or expo, simply join our VIP list at: Realty411guide.com/network or call 805.693.1497. Realty411Guide.com

PAGE 43 • 2017

Private Money411


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Realty411 Heats Things Up In Florida

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ith live events in Miami, Fort Lauderdale, and Tampa this year, our real estate leaders have have been heating things up in the Sunshine State. Realty411 Magazine and Real Estate Wealth events brought together top real estate and finance minds, speakers, and hundreds of investors at some of Florida’s most fabulous destinations. We took over Miami Beach. In Fort Lauderdale it was the stunning Westin on the beach, and then on to rapidly growing Tampa, FL. Florida real estate really offers so much value, and it was so exciting to see our panel bring even more value to the table, as well as the hordes of investors who came to learn, invest, and take their wealth game to the next level. Just some of those who helped make this a fantastic year in Florida included this collection of innovative advisory firms, speakers, real estate experts and financiers. Real estate coach and trainer Laura Al Amery of REI Lab graced the stage with her presence, providing great insight into the best ways to flip houses and fund deals in today’s market. Rebecca Rice was on-site with us in Fort Lauderdale. Her firm offers a unique system for finding up to 80 different ways individuals are losing money, and using those funds to leverage America’s most powerful companies to create more cash and wealth.

Realty411Guide.com

Michael Poggi of Millionaires Investment Group

PAGE 48 • 2017

Michael Poggi of Millionaires Investment Group talked to us about he has tapped into a highly profitable new niche which leverages Walmart’s commercial real estate traffic to create strong cash flow yields. Antonio Lopez of BREIA announced its expansion into Miami-Dade, as well as a range of discounts with major suppliers and home improvement stores, and connections to funding for lines of credit for members. Continued on pg. 50

Private Money411


The

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JP Maroney revealed how Harbor City Capital spoke on his company which pioneered a new way to invest into the massive multi-billion dollar online marketing space. Mike Mathe was on hand to provide more detailed information into his fast growing brand Little Pink Houses of America and its franchise opportunities which work on an executive lease purchase model. Fuquan Bilal of National Note Group unveiled his first book Turning Distress into Success, and is currently preparing to launch his second ‘The Tire Kicker’. Sensei Gilliland spoke in Miami, diving into the tactics and strategies for investing in real estate, and has just launched a free ebook for investors on his website for those interested in Remote Rehabs and how to invest out of state, profitably. Other experts in attendance included: Todd Continued on pg. 54

Realty411Guide.com

PAGE 50 • 2017

Private Money411


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TECHNOLOGY

Real Estate Platform BRELION Unites Local Investors with TECHNOLOGY B

Article by TIM HOUGHTEN

relion is plugging in the missing links to real estate investment success Real estate crowdfunding has been a popular buzz topic in the media for a couple years now. Investment through crowdfunding platforms has grown by tens of billions during this time. Yet, much of the capital changing hands has been to the benefit of big funds, giant corporations and brands, and even the banks that have littered the nation with distressed properties.

The original vision for crowdfunding was much different. It was about giving individuals access to better investments, and enabling small and midsized businesses to access capital without being captive to a few old institutions. CEO and Founder of Brelion, Vadim Kleyner, and his team recognized this, and the many gaps which have created a void for those that should be benefiting from the new JOBS Act opportunities. Then they created a new solution… PUTTING THE T.L.P IN REAL ESTATE CROWDFUNDING There are three core components which have proven to be key to real estate success for thousands of years. 1. TECHNOLOGY 2. LOCATION 3. PARTNERSHIPS Today we still marvel at the technological and Realty411Guide.com

logistical genius of the pyramids. It takes new technology and tools to make progress, and achieve greater things. Everyone knows that winning in real estate is all about “location, location, location.” And since the time of the pyramids the crowd and real estate partnerships have consistently created the most magnificent works of architecture and wealth. That’s true of monarchies which still exit today, of the 50 United States of America, and the Statue of Liberty. Yet, today’s crowdfunding platforms appear to lack unity of the crowd, or thoughtfully curated local investment opportunities for busy professionals. Brelion has changed all of this for those living in Northeast Ohio. INNOVATION IN REAL ESTATE INVESTMENT Brelion offers an easy to use investment platform for property investors in the Cleveland, OH area. Return-

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ing to the original design concept for crowdfunding – the platform specializes in connecting local investors with local projects. Vadim explains that “failure to localize investing was a major flaw in other platforms. Now investors can confidently and efficiently invest in real estate in the neighborhoods they know, understand, are comfortable with, and want to be engaged in.” The platform has been expanding from neighborhood to neighborhood in Northeast OH to offer new opportunities and revitalize communities. Recent projects have included fixing and flipping single family rentals, creating turnkey rentals, new development, and small apartment buildings. Investments are short term with an average timeline of around 6 to 12 months. With a minimum investment of just $1,000, and some projects paying monthly yields, this provides a great platform for investors to test drive the results before putting in more capital, and more deeply diversifying portfolios. CEO Vadim says that “this has really helped investors to lower risk, and enables them to invest in 20 different local projects, with the same amount of capital they might have barely been able to enter one investment outside of their comfort zone.” One critical feature that other crowdfunding platforms forgot, or failed to include that you’ll love at Brelion is social functionality. You’re not just a faceless icon in the crowd here. You actually get to engage with others investing in the same projects, and to communicate between organizers and capital investors. Brelion is open to both accredited investors with money to invest in local real estate projects, as well as local investors seeking capital for their projects. According to Vadim, “the platform’s intense local focus enables the team to quickly and accurately evaluate the safety, value, and profitability of deals investors want to raise money for. They are all just a few minutes away. No other platform can say that. To speed up the approval and funding process the firm has created a proprietary algorithm which incorporates 25 plus different metrics for evaluating deals.” The team is so confident in the system that Kleyner says he has personally invested his own funds in every single deal promoted on the site. Backend support for fundraisers also includes inRealty411Guide.com

One critical feature that other crowdfunding platforms forgot, or failed to include that you’ll love at Brelion is social functionality. You’re not just a faceless icon in the crowd here. You actually get to engage with others investing in the same projects, and to communicate between organizers and capital investors. troductions to investors, facilitating project updates, fulfilling accountability to investors, and dealing with taxation and bookkeeping. DELIVERING WHAT BUSY PROFESSIONALS NEED MOST We were fortunate to track Vadim Kleyner down between working on real estate projects and speaking at Notre Dame where he has been helping a new generation of student entrepreneurs understand the science of marketing. In fact, before stepping into the real estate industry full time Vadim had a strong career in IT and big data. As a busy technology professional himself he wanted to invest in real estate. There just weren’t any viable platforms around. He says “you had to get out and do it yourself, and buy properties, and be engaged in the industry every day.” That’s a luxury most busy professionals don’t have today. So Brelion was born to enable them to invest in great projects, close to home, but with the ease of a few taps on a smartphone. Discover the platform’s current investment opportunities at www.Brelion.com

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Stonebridge Offers Entrepreneurs the Capital They Need, pg. 21

improve it. What affects someone credit has more to do with utilization, meaning debt to credit ratio. Keeping your utilization below 50% is helpful in not hurting your credit score; the lower the better. Keep in mind your credit score is not always indicative of having “bad” credit, it may just be the person’s utilization is high. When you pay the debt down, the score goes up. People in the “real estate investing” business are notorious for having fluctuating scores depending on where they are in their flip. This does not necessarily mean they have bad credit, but it does hurt the amount of funding they may receive. We always want to see utilization paid down to below 50% before starting the funding process. Real estate investors notoriously have high utilization rates on their credit cards, depending on what stage of their flip they are in, and cannot qualify for traditional lines of credit from banks. We assist them with paying down their over utilization to below 50% of their credit card limit. This helps the investor’s FICO score improve, which will usually mean they qualify for more funding. This credit is working capital that real estate investors, entrepreneurs, and business owners can use for just about anything they need. That means acquiring new properties, down payments, paying down high-interest debt, rehab work, marketing, filling the gaps when tenants are late on rent, etc. Credit lines offer a huge advantage to real estate investors. It gives you the ability to take advantage of those deals that are passing in front of you on that “conveyor belt” I mentioned earlier. In addition, you only pay on the money you are actively using, Realty411Guide.com

it helps you qualify for the mortgage or hard money loan, covers expenses while you are involved in your rehab, and once you cash out on deals and pay it down, the money is right there to use again without the application and appraisal hassles and expenses. Additionally, using an unsecured line of credit means no liens on your properties, and never diluting your business ownership or giving up control as with equity fundraising. We are fortunate to have a network of business professionals as affiliates of Stonebridge Capital. These affiliates are located from coast-to-coast and refer their network of associates to us knowing we will help them obtain more funding, which gives them the opportunity to be successful. Remember without money to take advantage of opportunities life will pass you by. Features of our system include:

• Funding in just 7 to 14 days • Instant pre-approval • No application fee • 0% interest, up to 24 months • Stated income • New startups OK • 650+ FICO score • Free guidance on maintaining, optimizing, and growing your credit score Don’t Prejudge Your Credit If an extra $150,000 could help your business (and you can bet it can), don’t prejudge your credit. There are no application fees, and you can find out how much of a line you can get within minutes of going online. Review our website and get pre-approved online: http://.sbcapgroup.com or call 480.626.1772.

REALTY411 Heats Things Ups in Florida, pg. 50

Dotson, VIP Financial, Fortune DNA, and the local Chamber of Commerce. It’s going to be exciting to see how our hundreds of investors in Florida use this information and resources to increase their wealth and have a positive impact on their communities over the next year! As well as seeing which great speakers, educators, and innovators will be joining us at our lineup of power-packed Florida events in 2017. Florida is full of promise. In addition to its sun-kissed coastline, swaying palms, and sparkling beaches there are strong homestead protections, no state income tax, and a diverse set of fundamentals driving the economy. And yes, Florida has tech too! Our media company will be visiting in 2017 and hope to see you there too. For updates on our live events in Florida and around the country, be sure to join our VIP network at: http://realty411guide.com/network

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Quick Q-and-A with Rob Barney, pg. 17

A: I've been speaking to real estate investment groups since 2001. I was asked by a good friend of mine who is a teacher at Champions and at Collin County Community College to come in and lecture to her classes about nine years ago. Typically I speak one to three times per quarter. So I'd say I have the opportunity to address classes probably fifteen times a year. Q: What are your future goals? A: To begin a 501(c) non-profit that gives back to the Dallas/Houston market by helping families in times of crisis with housing needs.

“A business that makes nothing but money is a poor business.” ~Henry Ford

We Make the Deal Happen Private Mortgage Fund, LLC provides one to three year bridge and interim financing for non-owner occupied residential and commercial properties in California. Contact us to learn how we can help you make close more transactions. PRIVATE MORTGAGE FUND, LLC 23586 CALABASAS RD. SUITE 100 CALABASAS, CA 91302 • (818) 702-2551 Realty411Guide.com

Contact Elliott Kimmel: ekimmel@pmfundllc.com ext 7 or Gordon Van Dueck: Gordon@pmfundllc.com ext 9 PAGE 56 • 2017

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