Realty411 www.REALTY411magazine.com
Vol. 6 • No. 3 • 2017
MEET THE PRESIDENT
& CO-FOUNDER NEW AMERICAN
FUNDING
Discover How Patty Arvielo Built a $1 BILLION Dollar a Month Financial Empire
THE PEOPLE WHO CONTROL YOUR DEAL:
Meet the Leaders of the Finance World
Realty411
Wealth
Real Estate
PUBLISHED BY Pliagas Enterprises VICE PRESIDENT Nikolaos K. Pliagas COLUMNISTS Tom Wilson Kathy Fettke Randy Hughes Sensei Gilliland Leon McKenzie WEB MASTER Maria V. Landicho MARKETING Holly Lynn Rosa Houghten EVENTS & EXPOS Monica Werle Lawrence Ruano Michael Ringwald
PUBLISHER Linda Pliagas LEGAL COUNSEL Boesch Law Group CONSULTANTS Steven Kendis, GRI Hector Padilla, GRI ADVERTISING Ryan Gay Jason Burke Kasey Barrett EDITORIAL STAFF Tim Houghten Stephanie Mojica COPY EDITOR Lori Peebles Stephanie Mojica PHOTOGRAPHER John DeCindis
To receive complimentary copies for your club, real estate office or business, please call 805.693.1497
ADVERTISING 310.994.1962 Realty411.com | reWEALTHmag.com
Our Mission is Educate & Inspire Others to Invest. Realty411 / reWealth magazine is proudly published from Santa Barbara County, Calif. ©Copyright 2017. All Rights Reserved. Reproduction without permission is strictly prohibited. The opinions expressed by writers/columnists are not endorsed by the publishers. IMPORTANT DISCLOSURE: Publishers and staff are not responsible for performing due diligence on the opportunities offered by magazine advertisers and expo sponsors. Before investing in real estate seek the advice of your trusted financial advisor, attorney or tax consultant. BEWARE: Real estate investing is risky and may result in loss of capital.
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Learn How to Turn One Single Family House into a Monthly $5,000 - $15,000...
Cash Flow Tsunami! “Senior Housing is America’s Best Financial Opportunity for the Next 20 Years!” -Gene Guarino, President and founder
RALAcademy.com 480-704-3065 Realty411Guide.com
PAGE 3 • 2017
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Learn abo ut opportunit ies in the Tam pa, Florida ma rket with Asa m Properties
10 Linda’s Letter: Are You Ready for 2017? 12 The Art of Networking with Leonard Rosen 16 A Fund Manager Explains Private Lending 21 Unsecured Lines of Credit for Entrepreneurs
pg. 63
22 Sensei is Preparing for the NEW Economy 27 Up Close and Personal with Rob Barney 28 Meet Carrie Cook, CEO of Ignite Funding 31 Why RealCap is Bullish on Self Storage 34 What is Your Why for Being an Investor? 37 Sarah Montes Leads Texas Pride Lending 40 The Most Powerful Woman in Finance 42 New Lead Sources with U.S. Probate Leads 46 Your Best Year Yet - Tips from Tom Wilson 49 Discover Chicago-Based Barnett Capital
pg. 22
52 Kathy Fettke Discloses Florida’s Best Markets 54 Brelion Unites Investors with Technology 56 Investors Heat Things Up in Florida 63 Asam Properties Offers Tampa Deals
pg. 77
65 Young Investor Desires to Upgrade Miami 69 RentVest Launches National Management 74 An Investor Horror Story by Randy Hughes 75 Invest in a Vacation Home Destination 77 Learn about Land Banking in Southern California with Nor Cal’s Ace Capital Group
pg. 27 Inside this issue are fantastic tips to help you get to the next level of your real estate business. Above, clockwise: Sensei Gilliland with Black Belt Investors shares his secrets. Chen and Victoria Wang, founders of Ace Capital Group. Sarah Montes, CEO of Texas Pride Lending, John Aaron, founder of Miami-based Aaron Organization, and Rob Barney, owner of DHLC Mortgage. Realty411Guide.com
pg. 37 pg. 65
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Cleveland Cash Flow Starting in the upper $40K’s 13% ROI
Arizona Rentals Starting in the $80K’s #1 for job growth - Forbes
We Find It, We Fix It, We Rent It... YOU PROFIT! Sensei Gilliland
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How to Own Real Estate
Without Mortgages
Learn to DOMINATE the Bank, OWN Multiple Properties, and ELIMINATE Your Mortgages in 10 Years and Start with Very Little Cashflow.
In this class you will learn to dominate the banks, own multiple properties, eliminate your mortgages in ten years and start with very little cash flow. Realty411Guide.com
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Looking for Quality Education for Your Next REIA Meeting? VIP Financial Education classes teach real estate investors how to accomplish the following: • Maximize monthly cash flow and increase access to capital • Accelerate the acquisition of assets, including investment real estate • Accelerate the elimination of liabilities • Increase credit scores organically • Build emergency reserves
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“If you’re serious about your business this is a must see class!” All educational content is provided free of charge. There is no “selling from the stage” or solicitation by the speaker. The class will last approximately 50 minutes plus time for questions. VIP is not a financial advisor, nor do they sell any financial products. VIP has been providing free financial education for over 15 years and has an A+ rating with the Better Business Bureau.
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Linda’s Letter
Photo by John DeCindis
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 focus so much on the economics of real estate in each edition, and in each publication we produce. Inside our new issue for 2017, we feature some of the most influential people in the world of finance, such as Patty Arvielo, President of New American Funding. Arvielo’s company, which funds about $1 billion per month in transactions, spawns 122 branches across the nation. Other important finance leaders featured, include: Carrie Cook, CEO of Ignite Funding, fund manager Bruce E. Dinger, Sarah
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
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Linda Pliagas, Publisher
Montes, CEO of Texas Pride Lending, Rob Barney, owner of DHLC Mortgage, Leonard Rosen, founder of Pitbull Conference, plus Tim Soto and Matt Schuberg with RealCap! We also highlight Florida as we hosted several expos in the Sunshine State last year. I hope you enjoy reading our publication, and that it expands your knowledge. Thank you and be sure to say hello to me, if you see me at one of our upcoming events. Until next time!
reWEALTHmag.com
FICO
2017
Realty411/1.17
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 12 • 2017
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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: That’s 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 concept allows me to spend my time wisely. Remember, people love to talk about themselves; they will provide you with all the information you need very quickly. If after three min-
Meet The Most Interesting Man In Hard Money TIM HOUGHTEN
L
eonard Rosen is the CEO of the Pitbull Conference, and one of the most respected men in the money business. Meet the legend… Rosen’s persona may have easily been coined to emulate the hit series of Dos Equis commercials claiming 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 a popular professional 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. When he isn’t in the air traveling or producing on the air, you might find The Most Interesting Continued on pg. 33
Continued on pg. 33 Realty411Guide.com
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Benefits of Self-Storage Ownership 1. Control your own future and security: You can have residual income and build equity, so that you can have retirement income and leave a legacy for your family.
2. Hassle-Free Ownership: 3. Growth opportunity and limited risks: Self-storage There are minimal employee has the highest long-term reresponsibilities as some turn rates of all the major real self-storage properties can be estate asset classes, including managed online and through a shopping centers, apartment kiosk, allowing for 24-hour access, while elimination many buildings, office, and industrial costs and risks. and costs less to build.
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What i s PRIVATE
LENDING?
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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 property to purchase, and once lender gives the lending means the PML can relax while the green light, the RR borrows the funds to purchase money is in a truly safe place, working for them. and renovate the property. At closing, the lender Done correctly, equity is built in the purchase >
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
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 projects. 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 RR 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 RR’s business. Also, for the PML’s protection,
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
Lender Receives Original Promissory Note, Copy of Mortgage Deed of Trust, Insurance Policy
ABOUT KENNSEI TRADING, INC.
B
Mortgage or Deed of Trust Filed at Courthouse
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
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ULOC: Unsecured Lines of Credit for Entrepreneurs
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BY DANA BERSCH
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 the 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 $10,000 to $150,000. 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 the website and order your credit reports, you will be emailed your pre-approval with the amount of funding you qualify for — all within minutes of ordering the 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
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SENSEI’S TIPS
Engaging In Real Estate In The NEW Economy How should we be engaging in real estate in the new global and digital era? ABOUT SENSEI GILLILAND Founder of Black Belt Investors, Sensei Gilliland has been featured on the cover of Real Estate Wealth magazine, hosts ‘The West’s Top Ranked Real Estate Investors’ Club’ – 12 ROUNDS, and has engineered several highly popular trademarked real estate investment systems. Sensei is the go-to source for serious investors and entrepreneurs seeking extremely effective, no-holds barred training, investment properties, and funding. Realty411Guide.com
BY SENSEI GILLILAND
W
hat is the best way to invest in real estate in the new era we are in now? How might new political and economic factors impact our incomes, wealth, lifestyles, and ability to invest? How can we navigate the new landscape successfully regardless of age, current finances, and where we are on the map? THE TRUMP CARD, THE DATA & THE DIGITAL LIFE The U.S. presidential election is finally behind us. Love the result, or not, at least it has eliminated much of the uncertainty which has PAGE 22 • 2017
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kept investors and consumers on the sidelines for the last year. While it’s pretty clear that not everyone is excited about the new choice of president, most have to agree that at least Trump is expected to be good for real estate. Exactly how the new White House administration will impact the American and international economy will depend a lot on if people are able to put their differences down, and get on with embracing the opportunities, as well as how much of what Trump campaigned on is actually realized. So, while we can reasonably expect four good years of real estate growth and perhaps lower taxes as well, there is still some uncertainty. Millions of individuals are also facing a lot of uncertainty in their personal finances and incomes too. The horizon might be a little brighter today for those getting into real estate, but many jobs aren’t going to be around in the next 10 or 20 years. One Oxford study predicts 80% of current jobs will become redundant thanks to robots and digital roles in the years ahead. A White House report covered by the Huffington Post says there is an even higher likelihood that your career or job role will be extinct in the next few years if you make $20 an hour or less. There is an over 40% chance your job will be replaced by technology if you earn $40 an hour. The big concern is that at some point the current middle and lower class just won’t be able to catch up. Via Inc., Grant Cardone argues that being a millionaire is the new middle class. That leaves a lot of catching up to do for millions of Americans. Education and training is recognized as key to helping individuals change this dynamic and stay ahead of the curve. Yet, what you learn makes all the difference. I guess the only things we do know for sure right now is that both millennials and older generations facing retirement are struggling. 95% of Gen X and Boomers are not financially prepared or on track for retirement. Even millennials coming out of college are getting started with a serious handicap. Harvard data shows over 40% of college students having student loan debt. 57% say it is a “major problem for them.” According to a Forbes survey, over 30% of college grads say they wouldn’t have gone to college if they knew how much it was really going to cost. As of 2016, 43% of student loan borrowers weren’t paying their loans. What we have is an intense and urgent need for Realty411Guide.com
individuals of all ages to learn new skills that will help them financially, and real estate is clearly one of the only sectors in which most can really be confident in delivering on that.
A OR B? While there are some individuals and couples with high paying jobs, and some form of reasonable nest egg, the Federal Reserve reveals that the average working age couple in America only has $5,000 saved for retirement. Market Watch suggests at even 10 times that most won’t financially survive their first big medical bill. And at an average of just over $12,000 a year, don’t expect Social Security to go very far either. So what do you do? How do you get started investing in real estate without a large amount of capital? There are a number of options out there. But to make it really simple, there are two main paths available to everyone from millennials to boomers. A. REAL ESTATE WHOLESALING Real estate wholesaling is all about getting in, getting out, and getting paid. It can help you generate cash quickly, and in lump sums. It is more of an active form of investment, yet it completely scalable as a business model. Some have even mastered doing it virtually using new digital tools. If you have some time, but are light on capital and credit, this can be a great choice. It’s even great if you are bearish on the future of the economy and real estate market. Once you’ve made some money in wholesaling you can just grow what you’ve built, or start adding in other strategies too. B. PARTNER UP Wholesaling might not be for everyone. It is simple, but some people just prefer more passive investments. Maybe you’ve got a great job, are still in college, are already retired, or are working on a nonprofit cause you are really passionate about, and just don’t have time to be out there searching for deals, fixing them up, and flipping them. Or perhaps you just want complete time and location freedom while money works for you. If that sounds like your deal then partnering up is probably for you. You can partner up with others who >
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en Att n tio !
AGENTS!! INVESTORS!! DEVELOPERS!!
$85 Million Private Funds!! • REHAB PROPERTIES for • NEW CONSTRUCTION
No Financials or Verification
REHAB PROPERTIES • HARD MONEY LOANSAlmost
NEW CONSTRUCTION Any type of RESIDENTIALNo
Qualifying HARD MONEY LOANS or COMMERCIAL Property!
WE MAY LEND YOU 100% OF PURCHASE PRICE PLUS 100% REPAIRS SUBJECT APPRAISAL
$85 Million Private Funds!!!
No Financials or Verification - Rush Funding! No Red Tape - Almost Spec HomesNo Qualifying
REHAB PROPERTIES
Verification
HARD MONEY LOANS
!
No
n tio
California Bureau of Real Estate License Number 01963387 Financials California Bureau of Real Estate License umber 01963387 NEW CONSTRUCTION or
en
AGENTS!! INVESTORS!! DEVELOPERS!!
Att
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Engaging In Real Estate in the New Economy, pg. 23
Millions of individuals are also facing a lot of uncertainty in their personal finances and incomes too. The horizon might be a little brighter today for those getting into real estate, but many jobs aren’t going to be around in the next 10 or 20 years.
on the Future of Real Estate
will do all the work of finding properties, making offers, rehabbing, placing tenants, and property management, and just get a healthy return on your money. You can do this by teaming up with your friends and family, finding a mentor, going in on a joint venture with other investors just like you, or putting your money to work in private lending. There are lots of opportunities here, and some in which you can get started with just $10,000 or less.
ATTENTION LICENSED AGENTS & BROKERS • Build Wealth
7 STEPS TO SUCCESS I know it sounds easy when laid out in a magazine like this. Then it can be easy to get distracted, and if you want them there are endless excuses not to take the action to get started. So we’ve just done something new at Black Belt Investors to pave the way to success for you. Aside from just unveiling our newly redesigned website at BlackBeltInvestors.com, we’ve launched a power-packed online training center, and the “7 Steps to Success” program. The Dojo is our online training center, which offers access to constantly updated training materials for wholesaling, building a business, and creative deal structuring. Seven Steps is our newly designed path which streamlines the way for investors to get started, and to grow from wherever they are now, to where they want to go. It’s highly focused and customizable so that you can hit your goals and break through them fast. As a special bonus to you reading this you can also hop on the website and download a free copy of my latest book Remote Rehabs. About Sensei Gilliland Sensei Gilliland is celebrating 21 years as the founder of real estate education, consulting, and investment firm Black Belt Investors. A martial arts champion and instructor, entrepreneur behind multiple national ventures, in demand speaker, coach, and recognized as a generous community leader, Sensei brings a lot to the table for both new and veteran real estate investors and business owners. Realty411Guide.com
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The Agent-Owned Cloud Brokerage® “The statements and opinions contained in this advertisement are solely those of the individual author and do not necessarily reflect the positions or opinions of EXP REALTY INTERNATIONAL, INC. or its subsidiaries or affiliates (the “Company”). The Company does not assume any responsibility for, nor does it warrant the accuracy, completeness or quality of the information provided.”
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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. Q: How many loans have you closed in total? A: Over $100 million since 2001. Q: How many in a typical year or month?
Realty411Guide.com
A: About $2 to $3 million per month on average.
Q: How many homes have you personally flipped? A: About 12 so far.
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: What do you like best about lending services business? A: It gives me the opportunity to help other people achieve their dreams too.
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Continued on pg.62
reWEALTHmag.com
Ignite Your
INVESTMENT
Performance Still looking for better investment performance? How does $1M in tax-free returns sound? BY TIM HOUGHTEN
Securing strong investment yields is still one of the top priorities of all investors out there today. 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. Realty411Guide.com
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 type of investments. The firm has been providing these elite investment opportunities for 21 years. 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.
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These are the types of investments, which have made the likes of Warren Buffett, Sam Zell, Blackstone, and Bank of America very wealthy. 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 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. Carrie 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. 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 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
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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
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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, in 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
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. sector 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
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are aligned. 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 that 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.
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The Alluring Art of Networking, pg. 13
utes, 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 thrilling. The reason it’s sexy 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. 13
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. At these industry events thousands of lenders, investors, and innovators descend to learn from the man and grow their ventures. At these conferences, 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. Pitbull Conferences are where investors can 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 amazing as the events are however, the Pitbull Conference is really 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 and mentor the Pitbull also offers strategic marketing help and private consulting for funds, lenders, and real estate and financial startups. Just make sure you wear a suit when you show up. To learn more about the next Pitbull Conference, visit http://pitbullconferencer.com
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WHAT
IS YOUR
WHY? By Grant Trevithick
Are you interested in becoming a real estate investor? Do you want to be your own boss? Wouldn’t you rather keep all the fruits of your labor for yourself, instead of making some company 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 investors do all this in only 50 minutes,
?
with three to four commercial breaks, and always seem to make allot of money out of each house.
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. After all, I can make as much money
WRONG! 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 reality is there are two types of real estate investors: the normal real estate investor and the successful real estate investor.
Realty411Guide.com
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The normal investor attends a lot of classes and reads a lot of books. Continued on pg. 36
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HOW TO EARN MORE THAN 100% PROFIT ON EACH HOUSE
WHY CHOOSE US:
WHAT WE OFFER: Hands-on training on actual deals, working side-by-side with experienced investors, with one of the most successful RE investing companies in the DFW area.
Flexible pricing allows you to start today for as little as $1,495.
Full or Part-Time
Personal Coaching
Low Start-Up Costs
Work with Experienced Investors
Risk-Free Investing
WE FOCUS ON HELPING PEOPLE:
Start out part-time and work your way into a full-time job once you start making money, or just jump in on a full-time basis. Your first 10 deals are all risk-free; the company takes all the risk.
Company Provided Leads
We focus on helping families by buying their houses they need to sell but cannot otherwise do so. We help people by providing affordable homes to good families that cannot otherwise get a mortgage loan. We help the community by contributing the first 10% of all our profits to community service, empowering those less fortunate.
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What is Your Why? Investors Contemplate Life, pg. 34
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
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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
Texas Pride Lending makes owner financing easier, safer, and more profitable for real estate investors.
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, our media company gained new insights on how their firm can help investors 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 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
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 product and geographical expansion plans. PAGE 37 • 2017
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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 to 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.
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 the company and RMLO services online at http://TexasPrideLending.com.
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 she definitely sees higher interest rates coming. With this in mind
Make money passively with target returns of 10-15%
Contact Matt Schuberg at 818-924-3677 matt@realcapinvest.com or visit our Website at RealCapInvest.com
FREE Passive Real Estate Investing Report Receive a free report on the 3 ways to invest passively or semi-passively in today’s real estate market without losing your shirt or having to find great deals yourself.
Feb 28th
Written by Eva Melgarejo Photo Credit: Jack Ratana
a woman I wanted to work for! Since then, I’ve seen Patty on stage dozens of times, I’ve seen lines of people form after every speech she gives. Women and men waiting to shake her hand, take a picture and share their story with her. So what makes Patty so unique? You are about to indulge in one of the most amazing stories of achieving the American Dream.
Q & A with Patty Arvielo With 144 branches in the U.S. and over 2,300 employees, Patty Arvielo is the President and Co-Founder of the largest Latina-owned mortgage company in the nation.
Realty411Guide.com
Q: At what moment did you realized New American Funding was no longer a small business? A: It was not until 5 years ago that I realized the potential of New American Funding. Rick and I founded the company 13 years ago and three years later, in 2006 we had grown 300%. It really has been the growth of the company what has given us the confidence to set the next goal. It was at this point that I saw the need to service our consumers in their respective communities and the opportunity to build strong partnerships with REALTORS®, and our goal to establish a retail-based lending division was born. In 2011 we opened our first branch in Aliso Viejo, California, we now have 144 branches across the nation and counting. Back in 2003 I had no idea the capacity of New American Funding, all I knew is that we were on
I
t was an afternoon in late August 2015 when I got to meet Patty Arvielo for the first time. Right off the bat her bubbly personality, transparency and candidness captured my attention. I was in front of a woman who spoke her mind, knew the meaning of hardships and used it as fuel to build an empire. With 144 branches in the US and over 2,300 employees, Patty Arvielo is the President and Co-Founder of the largest Latina owned mortgage company in the nation. This was definitely PAGE 40 • 2017
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the right path. It was in the process that our growth gave me the confidence to keep building and through this process I discovered the strength of the business. Q: Some say that getting to the top is hard and staying at the top is harder, how do you stay at the top? A: Yes, getting to the top is hard, but everything of real value is hard. When you achieve milestones drawing attention will be inevitable, both negative criticism and new challenges flourish. I’ve learned to view criticism and challenges as an opportunity to grow. Every complaint I receive I listen to carefully and figure out a way to solve the current situation and prevent it from happening again. I always look for the lesson to be learned and make sure to generate action and stay true to my beliefs. As long as my actions are reflecting what I believe in, I know I am on the right path. Genuinely listening to clients and team members gives me a direct pulse on the status of my business and helps me stay at the top. Being easily accessible, a genuine listener and action driven has been my key to stay at the top. Q: How do you continue to grow your business? A: Growing your business goes Realty411Guide.com
‘Impossible has never been in my vocabulary. I wasn’t born an entrepreneur, I was made one.’
hand in hand with your personal growth. At a personal level having mentors to look up to is vital. I believe we must always have someone that inspires us, someone that is bigger than us, almost unattainable. Someone that we want to be like and figure out why are they so successful, and think how can I get there? On the business side, I continue to grow my business by identifying the needs in the industry, collaborating with key partners and staying committed to my principles. One of my key partners has been the National Association of Hispanic Real Estate Professionals, NAHREP. Collaborating with NAHREP has been the single best decision I have made. Their mission and commitment paired with their impressive network and reach allowed me to take my Hispanic outreach efforts to a higher level. As a result, I created Latino Focus in 2013. The in-house group’s mission is to develop services to enhance the quality of the lending experience among Hispanic consumers and aims to enrich the Hispanic community through home ownership. After three years, this initiative has evolved to encompass workshops tailored to the industry on how to better serve this segment of homebuyers and active participation in community events. We have also made a commitment PAGE 41 • 2017
within our company to reflect the communities we serve across all departments in New American Funding. I strongly believe this is not only good for business but it is the right thing to do. Q: What is your biggest fear? A: Being an entrepreneur has been one of the biggest fears that I’ve had to overcome. By nature I knew to be as secure as possible with my income and the idea of investing in a business was simply too risky. It was really my husband, Rick Arvielo, who taught me that in order to gain one has to risk, and little by little I’ve overcome my fear of entrepreneurship. As an entrepreneur, the challenges are constant and the beauty of it is our ability to adjust and continue to move forward. Impossible has never been in my vocabulary. I wasn’t born an entrepreneur, I was made one.
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PROBATE
Investigate 6 NEW Lead Sources for Your Real Estate Business! A ccording to Forisk Research, US Housing starts are projected to continue at 1.5 million a year all the way to the year 2024. This tremendous growth is great for the overall economy of the country. However, it will likely increase the competition for the stakeholders within the real estate industry. If you are a realtor or real estate investor, this is something that you need to be prepared for. Everyone wants a share of the profitable real estate pie.
By Leon McKenzie U.S. Probate Leads Realty411Guide.com
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But you shouldn’t fear. Increased competition does not mean that you have to lose money. You just have to find new ways to get better real estate leads for your business. The higher the quality of these leads, the more revenues you are likely to generate when they pan out. So, where do you even begin? How should you go about investigating new lead sources for your real estate business? As it turns out, there are plenty of options if you look in the right place.
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POSSIBLE NEW LEADS SOURCES FOR YOUR REAL ESTATE BUSINESS 1. YOUR LOCAL ATTORNEYS Whenever any major legal life changes occur, people tend to consult attorneys for help. We are talking about major issues such as bankruptcy, divorce, death and the like. And while these life changes may not be good for the clients of the attorneys, they can be very good news for your business. Think about it: when someone declares bankruptcy for example, that person will need to get rid of some properties in order to comply with the legal conditions that arise from being in such a difficult situation. Some of those conditions may require one to sell a home in order for the creditors to be paid. As a realtor or real estate investor, attorneys who handle major life issues for their clients can provide a steady source of leads for your business. Your business presents attorneys with the opportunity to further help their clients to sort out their financial problems in the easiest way possible. It’s therefore in your best interest to take the time to establish a connection with the attorneys in your locale. Let them know what you do for a living, and then make it clear that you are available to do business with them and their clients. If you establish a good rapport with your local attorneys, you will become the go-to person when they need to help their clients get rid of their properties. 2. HOME CLEANING COMPANIES Some people hire home cleaning companies simply because they are not in the mood to clean their homes. But do you know who else likes to hire professional cleaners? Sellers, that’s who! When people are set to put up their homes on the market, they are more likely to hire professional home cleaning companies. Professionals are in a better position to clean the homes properly. Once a home is put up for sale, then the chance for you to sell that home on behalf of a client as the lead Realty411Guide.com
REALTOR®, is gone. If you are a real estate investor, then you need to be prepared for the competition from other potential buyers who may also be interested in the property. Home cleaning companies are a good source of real estate leads because they will help you discover which homes may possibly be up for sale before the sign or listing goes up. This gives you the time to contact the homeowners and offer to either represent them or to buy the property off them quickly. So, the next time you come across a professional home cleaning company in your area, pay them a visit, and start talking to the relevant parties. Leave your business card too. The casual chats you initiate may end up leading to a sale or two for you. 3. PROPERTY MANAGERS Some homeowners are absentee landlords/ landladies. They want all the benefits of leasing out their properties without the headaches. For that reason, they hire property managers to manage their additional homes. If you are a realtor or real estate investor, then property managers are good professionals to have in your corner – especially if you live in an area with lots of investment proprties. At some point, some of the homeowners will get tired of owning the additional properties and may end up selling them to recover their monies. If you did your due diligence and established a good relationship with the property managers in your locale, when their clients need to sell their homes, you will be the first person to know. This will ensure that you get your pick of prime properties that will enable you to get the best value for your money. 4. CONSUMER LOAN COMPANIES When people are denied loans by banks, they tend to go for loans from consumer loan companies. In such cases, it is safe to assume that the clients of these companies have a high debt load, poor credit, and are possibly in financial distress. This assumption isn’t farfetched at all. After all, according to the 2015 NerdWallet survey, the average American household has a debt of $130,922! So, when someone in financial distress cannot qualify for a regular loan, it is safe to say that the person in >
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question may be looking to make lifestyle changes. In the event that such a person has a home, he or she may be very eager to downsize in order to reduce the overall debt. When you run a real estate business, consumer loan companies can be a good source of information on potential sellers or clients of homes, depending on whether you are a REALTOR® or investor. Take time to talk to the company administrators and inquire on the list of their clients. The worst that could happen is that you get a “no” because the company does not divulge information on their clients. Alternatively, someone working there may mention that they have clients desperate to sell their properties and want some help. Either way, it never hurts to ask. 5. NURSING HOMES AND RETIREMENT COMMUNITIES As of 2014, there were at least 15,600 nursing homes in the U.S. All these homes had a total of about 1.7 million licensed beds. It’s important for you to consider senior citizens when you are investigating new lead sources for your real estate business. Many of the retirees living in nursing homes and retirement communities may have some property that they acquired during their working life. When you consider that the average 55-64 year old only has $45,447 saved up for retirement, you can see why it would make sense for senior citizens to sell their homes to boost their savings. And this is where you come in. As a realtor or real estate investor, you could take the time to talk to the members of the retirement communities within your area and create awareness of your services. Let them know how you can be of service to help them improve their financial situation. Leave a business card to anyone who’s interested and then adopt a wait-and-see attitude. Do not be surprised to see multiple people contacting you to help them get rid of their properties. Many of them could have been waiting for someone helpful to come along and help them sell a home they had invested their time, money, and emotions in. THE TROUBLE WITH INVESTIGATING NEW LEAD SOURCES… Your local attorneys, home cleaning and consumer loan companies, property managers, and retirement homes and communities are all great sources of new leads for your real estate business. Most industry players who just happen to be your competition would probably not think of them. That said they do have their fair share of challenges: • Not every lead source will be willing or have the time to share the information that you seek. Some will cite client Realty411Guide.com
confidentiality issues while others just can’t be bothered. In such situations, all your attempts to find the best leads will be fruitless. • It takes a certain amount of social skills to network and form mutually-beneficial relationships with other professionals who can provide leads for your business. If you have social anxiety, prolonged contact to keep the relationships going can be a hassle. There is also the fact that it takes a lot of effort to establish the business relationships in the first place. If you have neither the time nor the energy, these lead sources won’t work out. PROBATE LEADMINING OFFERSTHE BEST REAL ESTATE LEADS AVAILABLE TODAY! Have you ever taken the time to consider how many people actually die and leave their properties behind? A lot as it turns out! There are at least 2.6 million deaths annually in the USA. And by 2018, there will be $15 trillion worth of real estate settlements that will run through the Superior courts. And 70% of them will be in form of real estate. It’s also worth noting that 50% of executors live out of the county where the probate process takes place. Think of the possibilities! Probate lead mining companies offer you the chance to explore a new lead source that not many real estate industry stake holders consider. But unlike the other lead sources, you don’t have to deal with the hassle that goes into getting the information that you want. All you have to do is buy the already-qualified leads and you will find highly motivated executors at the other end of the line. So, when looking for new lead sources, definitely consider probate leads. Probate lead mining companies like US Probate Leads offer the best solution if you are looking for new lead sources for your real estate business. US Probate Leads more than 12 years ago and has witnessed its growth during that period from a one city lead provider in the probate space to the only national provider of probate leads for virtually every county in the country. US Probate Leads is the only company providing Probate-related Real Estate-related leads to Investors and REALTORS® based on data collected directly from individual probate courts in virtually every state. This has been achieved by building a National Network of Researchers that visit each county one time each month. Leon’s team processes this incoming data and makes it available to individual subscribers for their use in reaching out to highly motivated property sellers. Contact us to learn about our flexible pricing and our quick delivery services, visit our website at: http://usprobateleads.com.
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PLANNING YOUR BUSINESS FOR YOUR BEST NEW YEAR! by Tom Wilson CEO and Founder of Wilson Investment Properties
D
o you plan your business, or does your business plan you? Day to day tasks can push you further and further away from achieving your goals without a solid business plan to keep you focused in the right direction. A business plan’s value is primarily in the process of creating it — in the thought processes it takes to really understand your business and where it needs to go — not in the end plan. A written plan doesn’t have to be long to have value. Let’s step through the elements that will result in a thorough plan to get your business off to the right start or move your current business to greater success.
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THE BIG PICTURE: MISSION AND VISION STATEMENTS. State your product or service, market, size, location and business approach. What will your company look like in three years? This is your elevator pitch to state what and who you are. PRODUCTS AND SERVICES. Define your product or service in detail. What are the features and benefits that will make it unique from your competition? What are your price targets? How much volume and growth are you planning? MARKET ANALYSIS. What are the characteristics of your market sector? What is your specific target market and demographics? Who are your competitors and what are the pros and cons of their products and business?
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objectives over time. Define your financing and capital requirements and what your metrics will be, that is, your accounting methods and tools, and your measurements of performance. And lastly, create financial scenarios for the best case and worst case, as well as target plan. Now is the time to prepare for variations from the goal, not when you are emotionally in the hot seat.
MARKETING. Describe how you will brand and advertise your business. What will be your marketing and sales channels? What incentives will you give to your customers and partners? Clearly define your business model monetization. STRATEGY. State what the strengths and weaknesses are of your products and/or services and of your company. Describe the business opportunity that you will capitalize on and your market positioning. Define your biggest threats and how you will defend against them. What and when will be your business exit options?
“All of our Dreams come true if we have the courage to pursue them.” ~ WALT DISNEY
5
Manage cash flow and capital very carefully. More businesses fail for negative cash flow than for lack of profit.
TOM’S TOP 6
Plan for the potential. Most financial goals take twice as long and twice as much capital as forecasted.
10 T IPS 1
7 8
Write your business plan for a lay person, not a specialist in your industry. Keep it simple. Never outsource your business plan.
OPERATIONS. Give the details for your organization structure: legal entity, key personnel, partners, equipment and facilities. Tell how you will manage the production and processing of the business. Write down a timeline with the human and material resources needed to execute your start up and growth.
Passion, persistence and hard work = over half of success.
Be Persistent: Many successful companies took a long time to get financing and partners to believe in them.
2
Create a Board of Directors. It doesn’t have to be formal. Utilize mentors, peers, and friends.
9
Talk to Your Competition! You’d be amazed at what ego will prompt your competitors to tell you. Start off with a compliment and share something about your business. Sharing information is usually a win-win situation.
3
Secure employees, partners, and resources with direct experience in your area of business, even if they have had failures.
4
Use focus groups to test ideas (get some friends together for a focus party).
FINANCIALS. State your precise sales, profit and cash flow
10
Keep honing your business. You don’t have to do it all-network, use mastermind groups, and delegate. Discover more information at: http://tomwilsonproperties.com or call 408-867-1867. Listen to Tom’s weekly radio show at 2 pm Wednesdays on KDOW 1220am, San Francisco’s leading business radio station. Podcasts are available on the website, iTunes and YouTube.
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STRATEGY
Setting A New Pace In Funding Real Estate Investments BY TIM HOUGHTEN
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
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altered what investors and the 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 big, traditional financial 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, which has resulted in the doubling Barnett REI Finance’s business each calendar year since 2013. >
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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
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 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
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 got a “weather-proof box.” Looking ahead Vincent says the company is confident in its loans and Realty411Guide.com
Six Loan Products from Barnett Capital
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.
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INSIGHT
The BEST PLACES to Buy RENTAL Property in Florida Kathy Fettke, co-founder of Real Wealth Network, may live in California, but she manages a national portfolio. Find out why she has her eye on the Sunshine State.
T
he best places to buy rental property often have three things in common: job growth, population growth and affordability. When you find a market that has all three of these factors, you’ll probably be able to find good investment opportunities. There are several cities across the United States where these factors exist today — places where you can buy high cash-flow rental property while prices are still low (around $100,000 in many cases), and watch your equity grow. In this article you’ll learn about some of these “bestbuy” markets in Florida, one of the states we are currently focusing on. Find out what makes them great places to invest in and why. #1: ORLANDO, FLORIDA The demand for single-family homes has been on the rise in the Sunshine State for quite some time. Still, it’s Realty411Guide.com
possible to acquire fully renovated properties in good Florida neighborhoods for under $120,000. Plus, you can rent them for upwards of 1% of the purchase price. What’s even more interesting is that, despite these incredibly low housing prices statewide, many home seekers are choosing to rent instead of buy. As you can imagine, this is causing rental rates to skyrocket (approximately 8% just this year)! And on top of great cash flow, values are on an upswing in these areas with no sign of slowing down. They are nowhere near their 2006 highs and inventory levels are still way down because builders just can’t make a profit at these price points. Property taxes and insurance are low, plus there’s no state income tax. Add warm weather and exceptional health care, and you can see why many of the 10,000 baby boomers retiring every day are moving to Florida. Orlando is one of the best places to buy rental property in the state of Florida in 2017. Located in Florida’s “sun belt” region, the area is known for its warm climate, beautiful beaches, world famous amusement parks, entertainment, and attractions. With a combined population of 3.3 million residents, the Orlando real estate market is fueled by job seekers, baby boomer retirees, and students who want to live in a “cheap and cheerful” area that offers a high quality of living at a reasonable cost.
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ORLANDO MARKET STATISTICS • Median Sales Price: $115,000 • Median Rent Per Month: $1050 • Median Household Income: $42,418 • Population: 255,483 • 1-Year Job Growth Rate: 4.6% • 1-Year Appreciation Rate: 12.6% • 3-Year Appreciation Rate: 38.4% • Unemployment Rate: 4.5% ORLANDO MARKET QUICK FACTS Metro Orlando is the 4th largest metro area in the country, and it’s also the 16th fastest-growing metro in the nation. Forbes reports that 60 million people visited the Orlando area in 2015, making it the most visited tourism destination in the country. The population in Orlando has grown 41% since the year 2000. To date Metro Orlando houses over 2.3 million residents. Rents grew by 3.4% in the last 12 months, which is higher than the national and state levels. Employment is likely to grow 4.2% a year through 2017, according to Moody’s. Foreclosure laws have helped keep home prices significantly below their last peak, but rates are rising. Orlando’s employment growth is among the best in the U.S. with 173,900 jobs created since the recession and a growth rate of 4% per year. Orlando Medical City boasts a $7.6 billion economic impact and will create 30,000 jobs. CONCLUSION: TOP THREE REASONS TO INVEST IN ORLANDO IN 2017 As mentioned, most of the best real estate markets have three factors in common: job growth, population growth and affordability. Orlando is no exception… Job Growth: Orlando’s employment growth is among the best in the U.S. with 173,900 jobs created since the recession and a growth rate of 4% per year. Moody’s also predicts employment to grow at rate of 4.2% a year through 2017. Population Growth: Orlando’s population has grown 41% since the year 2000, and is expected to grow an additional 1.5% in 2017. (This means the demand for housing is likely to increase.) Affordability: In Orlando it is still possible to purchase fully renovated properties in good Florida neighborhoods for less than $120,000. Realty411Guide.com
#2: TAMPA, FLORIDA Located on the west coast of Florida, Tampa Bay is a densely populated metropolitan area (second only to Miami), with a population of more than 4 million people. Major cities in this area include St. Petersburg, Largo, Clearwater, New Port Richey, Holiday and Tampa. The local economy is worth of $130 billion and the metro area has been ranked as one of the top 20 fastest growing in the country. Tampa also has a strong local economy with a strong focus on job growth in areas such as financial services and healthcare. The Greater Tampa Bay area is consistently ranked among the top 20 fastest-growing metro areas in the country and with billions of dollars of residential, commercial and infrastructure investment underway, it is one of the engines of the Florida economy. In 2015 alone, the Metro Tampa area added 44,300 private, new jobs to the community, giving it the fastest growth in the state and one of the fastest in the country. More than 19 firms with annual revenues of more $1 billion are headquartered here and it is home to four Fortune 500 companies. Tampa has a very diversified economy with financial services, healthcare, research, education, tourism/retirement and military bases all making significant contributions to jobs and growth. TAMPA MARKET QUICK FACTS Tampa has a population of 4 million, a local economy worth over $130 billion, and the it’s ranked in the top 20 fastest-growing metros in the United States. An area with mostly high-priced homes, Tampa still has pockets where investors can find homes at affordable prices, even as low as $90,000 and turn around to rent them for $950 a month to $1250 a month. According to the U.S. Bureau of Labor Statistics Tampa-St. Petersburg gained 12.76 private-sector jobs per day from a total of 1,084,400 in September 2006 to 1,131,000 in September 2016. The area has numerous strong Fortune 500 companies including Publix Super Markets Inc., Jabil Circuit Inc., and WellCare Health Plans, Inc. Tampa remains a fantastic tourism market. It’s a popular option for retirees as well, providing for many shortterm rental opportunities. CONCLUSION: TOP 3 REASONS TO INVEST IN TAMPA IN 2017 As you’ve learned, when a real estate market has job growth, population growth and affordability, you’ll likely be able to find good investment opportunities. We believe
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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 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 Realty411Guide.com
Today, we still marvel at the technological and 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. 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 Ohio 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 Mr. Kleyner says he has personally invested his own funds in every single deal promoted on the site.
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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. Back-end support for fundraisers also includes introductions 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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Realty411 Heats Things Up In Florida
W
ith live events in Miami, Fort Lauderdale and Tampa last year, our real estate leaders have have been heating things up in the Sunshine State. Our industry events in 2016 brought together top real estate and finance minds, speakers, and hundreds of investors at some of Florida’s most fabulous destinations. In Spring, we took over Miami Beach. Last summer, we networked in Fort Lauderdale, at the stunning Westin, and then on to rapidly-growing Tampa. Florida real estate offers so much value, and it was 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. Some of those who helped make this a fantastic year in Florida, included our collection of innovative advisory firms, speakers, real estate experts and financiers. Real estate coach and national trainer Laura Alamery, CEO 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.
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Michael Poggi of Millionaires Investment Group and national educator Laura Alamery, were co-hosts of our Florida expos.
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Michael Poggi, founder of Millionaires Investment Group, talked to us about why 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 the 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. JP Maroney revealed how Harbor City Capital Continued on pg. 58
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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 Jim Beam 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 on his website for those interested in Remote Rehabs and how to invest out of state, profitably. Other experts in attendance included: Todd Dot-
Photos - Top: Jim Beam with Rebecca Rice & Associates. Below: Rebecca Rice, in ivory dress, speaks with an expo guest.
son, VIP Financial, Fortune DNA, and the local Broward County Chamber of Commerce was also in attendance. 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. Photos - Top: Todd Dotson, national educator To see the speakand speaker. Below: Rosa Houghten is representing our company at our Florida events. ers, educators, and innovators who will be joining us at our power-packed national events in 2017, be sure to visit our event website http:// Realty411expo.com on a regular basis. 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. Our media company will be visiting in 2017, and we hope to see you there too. Be sure to join our VIP network to receive regular email updates about our activities by visiting and signing up on: http://realty411guide. com/network — Written by Tim Houghten
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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.
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Quick Q-and-A with Rob Barney, pg. 27
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 15 times annually.
REAL ESTATE
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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 62 • 2017
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PROVIDER PROFILE over 25 years’ experience in Residential and commercial real estate. We have successful businesses in China in Manufacturing, Real Estate development and Tourism. Our core infrastructure will make Asam grow into a large property development company.
C
urrently Tampa is one of the most enticing cities; it lures investors from around the nation and the world. ASAM Properties is serving this Florida hot spot. The company offers complete turn-key service, minimizing management headaches for investors and making the real estate investment process simple and profitable. ASAM Properties even has construction crews ready to complete any renovation work necessary. Once a property is made ready for tenants, Asam finds quality tenants to place in the home, reducing losses from vacancies and ensuring a steady income stream. Whether an investor is just getting started, or is looking to expand their existing portfolio, the investment experts at ASAM Properties are ready to help them take the next step. We recently interviewed the owners of Asam, Yinan (Angela) Zhao and Yan Chen, who are both originally from China and now live in the U.S., to learn about the opportunities in the Tampa market. Q: How long has Asam been in business? A: We started Asam about a year ago, as we saw the market in the Tampa area rapidly growing and bouncing back from the recession. Although our firm is only about one year old the principals of the firm have
Q: How many partners consist of Asam? A: There are two partners in Asam Properties, myself, Yinan (Angela) Zhao and my partner, Yan Chen. We are both originally from China and now live in U.S. We both bring years of real estate and business experience to Asam. We have already operated numerous successful companies. We know what it’s like to manage employees and run day-to-day operations to make a company successful. Q: When was the last time you made an investment? A: Just last month Asam purchased an 18-unit apartment complex that will undergo a complete and total gut renovation and gear the building towards student housing. For 2017, we are planning on keeping approximately 20% of all our purchases as investment properties for our own portfolio. Q: Why should I invest in Asam Properties? A: We have experience in the local market we sell properties in and we have a team in place that handles everything for our clients, including acquisition, different financing options, sale, construction and management. Asam Properties has the right team in place to make your property acquisition successful. Q: Do you co-invest with others? A: We do invest with others, most of our investments have been with family members and close friends, but as more and more opportunities present themselves we are open to joint ventures with clients that we get to know and have the same goals in mind. Q: What’s the market like in Florida? A: The Florida market is very hot right now and is in high demand. The rental and sales market is strong. A year ago, we were buying properties listed on the MLS, now that is far and few because of higher prices and supply and demand. We must go back to
>
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possibilities for those looking to move to the area. Q: Where do you see Asam properties in five years? A: We have ambitious plans for the company and hope that we turn Asam Properties into a major landlord in both residential and commercial properties throughout the Florida region. As foreclosures dry up and markets start to change, we will be looking at opportunities in new construction and development. We think our investors who have purchased, and will be purchasing with us, will continue to invest as we present additional projects.
more conventional ways of getting inventory which we have the infrastructure to do so we can get monthly inventory. Q: Why should investors buy in Florida? A: Florida is a great market to invest in for both cash flow and future appreciation. As everyone knows with the downturn of 2007, Florida, like other western states, previously had seen high appreciation, but then the market fell out. We feel because of this dynamic,
Yinan (Angela) Zhao Yan Chen
‘As foreclosures DRY UP and markets start to change we will be looking at new opportunities in NEW Construction and Development.’ Q: What entrepreneurs do you admire and why? We are going to pick two because as a company we admire both entrepreneurs. Firstly, Sam Zell with Equity Residential. Being in the real estate business, who would not admire Mr. Zell, who is chairman of the largest apartment real estate investment trust. He came from humble beginnings and worked very hard to become successful. He started in college managing a 15-unit apartment building for free room and board and gained knowledge to start a real estate company. By the time he graduated from college, Mr. Zell and his partner were managing over 4,000 apartments and owned hundreds of units outright, very impressive. The second one is Jack Ma, who is founder and chairman of
there is a lot of opportunity in the market to still get quality properties, at lower prices than other markets, and with a lot of potential. Florida has a lot of wonderful factors that make it a great place to park your money: We are seeing job growth, population growth, great weather, beaches, and so much more. The best part is that Florida is still affordable, especially compared to pricey California. In fact, many California investors we know buy in Florida for diversification, and because of the similarities the states have. In Tampa, which is our primary market, there are developments like the Vinick-Cascade project being built in downtown Tampa. Plus, with the University of South Florida and University of Tampa in the area, education jobs are a prominent part of the employment Realty411Guide.com
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Alibaba Group. He is from mainland China and is one of the most successful business owners. He never gave up and kept at it, until he was super successful. He kept trying regardless of so many disappointments. He is the first entrepreneur from mainland China to be on the cover of Forbes Magazine and had the largest initial public offering in U.S. history. I would say we admire both of these entrepreneurs for their determination to be successful and never give up on their dreams beContinued on pg. 80
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MIAMI
NICE
Florida Entrepreneur
JOHN AARON
Invests with the Intent to Give Back
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>
Young South Florida Entrepreneur Leads the Way in Enhancing the Community >> By Tim Houghten
Featuring John Aaron
Investor, Developer and Entrepreneur John Aaron reveals his thoughts on the direction of the Florida market, and where he sees the most attractive opportunities ahead…
G
oing from small town to leading a popular brand in the Magic City of Miami, John Aaron demonstrates where his company is going and what’s possible with serious focus, commitment, and a leap of faith. If you’ve ever heard of Sebring, Florida you know it is a little town without much going on. That’s were John Aaron grew up. There aren’t many options when you grow up in that type of environment. If you do really well you might eventually get a job at the local hospital, or perhaps get a football scholarship and a pass to a faraway college. Sebring doesn’t even have any interstate highways going through it. That didn’t stop this hungry entrepreneur from pursuing his passion and dream. During a recent interview with Katrina Campins (“The Apprentice”) he is described as one of the few next generation young entrepreneurs who have both hustle and work ethic. Early on he knew he wanted to do something with real estate, and he believed Miami was the place where you could really make the magic happen.
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PHOTO: John Aaron was also featured on the cover of our digital monthly publication, REI Wealth, for information visit: http://reiwealthmag.com
Initially starting as an agent John Aaron quickly threw in the towel and started investing. John formed the Aaron Organization in late 2012 and began hunting for his own property deals. While he insists that real estate investing is not a get-rich-quick gig, his first deal, which landed him a check for $19,000, got him hooked and only emboldened his mission. In the last four years the Aaron Organization team has flipped over 200 single family homes in the tri-county area of South Florida. However, John tells us that more Continued on Next Page PAGE 66 • 2017
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than just being about the money, his focus and persistence has really paid off in proving the ability for one to achieve what they believe in — in whatever field they are willing to take a leap of faith towards. The Aaron Organization has a great brand and blossoming company culture, but in John’s words the team is also winning in “creating something positive” by enhancing the community and giving job opportunities. As John experienced there will always be the pessimists, the bears, and those who have given up on their dreams, willing to offer their negativity or two cents. Aaron Organization’s founder insists: “It’s always a great market, if you have the right strategy.” Aaron Organization is definitely on the rise in South Florida, and boasts a growing team including acquisition manager Darlenys Castillo, who is young, hungry, and has been with Aaron organization for two years. Castillo has helped acquire over eighty homes and counting. Paola Vizcaino has been with the Organization for over a year and is closing transactions every week. Aaron Organization’s thoughts on the market now is that there may be more Florida buyers and investors using loans for leverage today than a few years ago. Those who have ever visited Miami already know the international attention it commands, and its role as a major global banking playground for the wealthy. South Florida is an investment haven for wealthy domestic and
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John formed the Aaron Organization in late 2012 and began hunting for his own property deals. While he insists that real estate investing is not a get-rich-quick gig, his first deal, which landed him a check for $19,000, got him hooked and only emboldened his mission. foreign investors. Miami’s realty growth trends are only likely to continue and grow with the recent finishing of the Panama Canal widening, which is pegged to dramatically bolster the Florida economy. This year, John reveals that Aaron Organization has gone beyond its stronghold of renovating single family homes to enhancing the way of life in the region through developing commercial properties. Miami, Fort Lauderdale and West Palm Beach have well-built up areas, but despite that fact, they still have pockets that are ripe for development and revitalization. John says this is where the biggest opportunities are, in having the greatest returns for investors seeking better value and spreads than can be found in Miami’s more congested neighborhoods and districts. This is also the best place to make the most positive impact on the community. Learn more about Aaron Organization by calling 305.747.7299. Watch a video about John Aaron at: https://www.youtube.com/watch?v=2N2QNB2neQI
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Better Tenants, Better Price, Better Life!
Interview By Tim Houghten
R
entVest is out to upset the traditional property management mindset. The results show. They are doing very well at accomplishing that mission. In an exclusive phone interview with RentVest, co-founder Spencer Caldwell filled us in on the property management firm’s great growth and unique approach to serving rental property investors. As of Q4 2016, RentVest had expanded from Phoenix to Tuscan, Las Vegas, and Texas. The company soon expects to be nationwide. We’ve all got big goals, but this firm seems to be achieving great traction with new pricing structures, personalized service, and by integrating new technology.
Realty411Guide.com
> $80 a Month Flat Fee Property Management < The biggest and most obvious draw to using RentVest for rental property investors is the firm’s pricing. Caldwell says there are many advantages to this industry disrupting flat fee structure. Not only is $80 a month are very attractive rate by most standards, it covers all properties in all price ranges. Caldwell asks: “Why pay more for your more expensive properties? It doesn’t cost a manager any more to handle a $5,500 per month rental than a $500 rental.” Of course, most services do charge thousands more. And yes, this is full service property management, including placing tenants, rent collection, making sure units are rent-ready, accounting, etc.
> What’s Different < In our interview, the company spokesman explained that they are able to offer this deal, without sacrificing service thanks to a variety of efforts which streamline the management process and make it more efficient. This is investor-centric management, operated by executives who have been real estate investors themselves. Caldwell and his firm Continued on Next Page PAGE 69 • 2017
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RentVest, Better Tenants, pg. 69
Gentry Real Estate are well known for buying and assisting other investors with acquiring foreclosure properties at trustee auctions. This perspective enables them to take the pain out of owning and managing rentals by understanding investor concerns, in tandem with the intuition needed for successful management that only comes with years of experience. One of the firm’s mottos is “Better tenants, better price, better life.” Caldwell explains that this begins with thorough renter screening. He says “there are plenty of tenants out there. It just makes sense to select the best quality tenants to ensure great performance.” That means background checks to screen out those with past felonies, past evictions, low credit scores. RentVest has also optimized communications and relationships on both sides by increasing connection and responsiveness with dedicated management reps. Dedicated managers are assigned to a certain number of properties and have a direct connection with both the tenant and owner. You get to know them by name, and can reach your direct contact by email and phone. > GEEKING OUT THE PROPERTY MANAGEMENT INDUSTRY < Obviously, managing such a vast portfolio and providing great service at these low rates couldn’t be done without some great technology. Spencer explains this is empowered at a high level at RentVest thanks to having an in-house tech team and full time programmer to custom code solutions. This includes providing owners and renters a live online dashboard, which is updated in real time. Owners are able to watch as the rent comes in, maintenance requests are received, and how fast they are dealt with. Tenants can pay their rent, see that their concerns are being addressed, and know when maintenance contractors are scheduled to come out. Additionally, the firm creates videos of properties on movein and out, which both serves landlords and squashes any disagreements over tenant deposit refunds. > WHEN TO CALL < One of the biggest challenges for rental property investors today is that they reach out for property management help too late in the game. Caldwell says they will receive calls from rental property owners with vacant properties, and perhaps are just finding out that their salesperson overestimated the potential rent by $400 a month, or may have forgotten to highlight the $500 a month in HOA dues which completely erodes cash flow. RentVest Property Management welcomes investors Realty411Guide.com
to call or email with their scenarios even before they purchase new properties. They’ll help evaluate your deal, and can provide a third party set of eyes to advise on how quickly a property can expect to be rented, what realistic rents are, and what features may be pluses or minuses when it comes to marketing for renters. Find out more online today at www.RentVest.co The Best Places to Invest in Florida, pg. 53
TAMPA MARKET STATISTICS • Median Sales Price: $102,500 • Median Rent Per Month: $1,075 • Median Household Income: $43,514 • Population: 352,957 • 1-Year Job Growth Rate: 3.6% • 1-Year Appreciation Rate: 14.2% • 3-Year Appreciation Rate: 29.8% • Unemployment Rate: 4.6% Tampa is one of the best places to invest in real estate in 2017 because it has all three: Job Growth: In 2015, the Metro Tampa area added 44,300 private, new jobs to the community, giving it the fastest growth in the state and one of the fastest in the country. Population Growth: Tampa has a population of 4 million, a local economy worth over $130 billion, and the it’s ranked in the top 20 fastest-growing metros in the United States. Affordability: An area with mostly high-priced homes, Tampa still has pockets where investors can find homes at affordable prices, even as low as $90,000 and turn around to rent them for $950 a month to $1250 a month. Want to learn more? Visit RealWealthNetwork.com for free education, mentoring and a strong, trustworthy network to help you learn more about your options and maximize your returns. We can help you find the best markets for investing, and introduce you to experienced property managers, turn-key income property providers, syndicators and highly reputable real estate agents nationwide.
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She Was Mad as Hell, and Came Looking for the Owner Randy Hughes explains how real estate investors benefit from the use of land trusts.
A
s landlords we sometimes have to do hard things. Evicting a tenant for non-payment of rent is perhaps the worst. But, if a tenant refuses to pay their rent, or violates their lease terms they will face eviction. There can be other reasons to get rid of a tenant. Case-in-point. I control a group of condos located on a corner in my town. Of course, each condo is titled in a separate land trust for privacy of ownership and asset protection. Last summer we had a large number of police calls to the condominium complex. Upon further investigation, we determined that one female resident was always involved in the “trouble making.” So, when this trouble-making tenant’s lease came up for renewal we told her we would not renew her lease. The trouble-making tenant asked why we would not renew and we told her, “because the owner told us not to renew.” She got mad, but realized that we were merely the property management company and we were just taking orders from the owner. She went on to ask who the owner was and we said we could not tell her that per our contract with the owner. Three days later I received a phone call from my attorney’s secretary. She said there was a woman in their reception area demanding to speak to my attorney about her lease. The irate tenant had looked up the “owner” of her condo online and found my attorney’s name. Then, she looked up my attorney’s office address in the phone book and marched down to his office to confront him.
Realty411Guide.com
Hopefully by now you are beginning to understand the benefit of NOT owning real estate in your name personally. Let me back up here and explain something I do to add another layer of asset protection. Sometimes when I initially purchase a property I make my attorney the trustee, for one day. This technique puts the title of record in my attorney’s name, but I immediately fire my attorney as Trustee and hire an out-of-state Trustee. This way the public record shows my attorney as the “owner” even though he is not. I told my attorney’s secretary to tell the tenant to leave the premises and if she did not do so voluntarily, call the police! This real life story exemplifies the hazards of owning rental real estate. There can be life and death safety issues relating to associated with the landlord-tenant relationship. Some tenants can get violent when it comes to their housing, and you need to protect yourself and your family from the dangers. Just imagine if you are evicting a tenant and they can find your address in the phone book or online and they show up at your house with your ten-year-old daughter answering the door. >>
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Continued on page 80
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STRONGER THAN EXPECTED SALES SPECIAL REPORT
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at The Grove Resort & Spa Less than 4 miles from walt disney WORLD®
he residences at the Grove condominium with all of the benefits quite seclusion of Old Florida.” NEAR More ownership, than 15 theme parks & world shopping of fee-simple but operated Resort & Spa in Orlando Addingclass adventure to the mix, The ON-SITE WATER PARK SPA & FITNESS RESTAURANTS MARKETPLACE are enjoying stronger than as a hotel. When not in use as a vacaGrove Resort & Spa wraps itself tion home, residences are managed as expected sales in phase around two separate pool areas. The a luxury hotel, leveraging the marketone. Selling at twice the pace exSprings Pools and the Surfari Water & Bedroom ing and management of internationally RESIDENCEs pected in 2106, the initial 184 two Park both offer full food and beverage renowned Benchmark Global Hosand three-bedroom residential-style their own Bar & Grille, but two from the from s pitality, offsetting costs for owners. guest suites will open in early completely different poolside expeBenchmark manages over 5,000 units March of this year. Creating a new riences. The Springs Pools lavishes type of hotel experience for Central in 40 hotels worldwide and brings a you with three large pools, a hot tub, wealth of professional elegance to The poolside massage and private cabanFlorida visitors, The Grove is the Grove Resort & Spa experience for largest development of its kind as providing a more relaxed resort owners and guests alike. underway in Orlando with a total setting. While the Surfari Water Park Nicholaus Rohrbach is a sales asof 878 resort homes at completion. boasts extreme Florida resort action sociate with The Grove Resort & Spa. According to Director of Sales with two Flow Rider ® surf machines, Rohrbach will be speaking on Central Bill Traback, residences at the two 2-story water slides, a kids' area, Florida’s booming real estate industry grove are selling fast because of and a winding lazy river. The Grove’s at several Realty411 events. He says the property’s unique blending duel Flow Rider ® create a year-round in his years of experience, very few of amenities, convenience and surfing experience adjustable to all vacation home properties offer the affordability. “The Grove offers skill levels. The Grove’s professional level of value found at The Grove. real estate buyers the opportunity staff of Flow Rider ® experts will “Especially when you consider how to own a piece of the most visittrain riders experiencing the thrill of • Grove the blends the serenity of Flori407.618.1672 www.GroveResIDENCES.com ed destination in the U.S.,” said an endless wave with the option to da’s natural places with the proximity Traback. “Ideally located, The body-board or stand-up ride as well. EQUAL HOUSING OPPORTUNITY. BROKER PARTICIPATION WELCOME. ORAL REPRESENTATION CANNOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATION OF THE DEVELOPER. FOR CORRECT toBYDisney and all STATUTES, of the TOother Orlando REPRESENTATION, MAKE REFERENCE TODisney THE DOCUMENTS REQUIRED SECTION 718.503 FLORIDA BE FURNISHED BY THE DEVELOPER TO A BUYER OR LESSEE. AN OFFER WHERE PROHIBITED Grove is minutes from and For buyers, the NOT attraction is clear. 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 Central SALE ARE NOTFlorida’s INCORPORATED IN, LOCATED IN, OR RESIDENT INsaid THE STATE OF NEW YORK: (II)“Buyers THE OFFERING IS NEITHER MADE IN THE STATE OF NEW YORKconvenience NOR MADE TO RESIDENTS OF attractions,” Rohrbach. centered among Affordable vacation marTHE 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 experience Florida 4-Star resort living unique experiences, first-class dinried to the feature-rich collection of 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. in the two to three-hundred-thouning and natural beauty. With our amenities delivering the luxuries of a 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 award-winning residences, surf and sand-dollar price range, minutes from Florida resort. Three swimming pools, the parks, nestled on Lake Austin and water park as well as a world-class a lazy river and the first surf simulator part of Central Florida’s conservation spa, The Grove will far exceed at any Orlando vacation home comgrounds.” client expectations.” munity or hotel is the focal point of The Grove creates a lifestyle The Grove Resort & Spa is a The Grove experience; the world-class experience seamlessly blending easy condo hotel. A new form of vaContinued on page 80 access to major attractions with the cation home ownership; legally a
2 3
$260
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We Invite You to Discover our Premium California LAND INVESTMENT Opportunities!
For over 30 years, ACE Capital Group has been providing valuable opportunities for individuals and families to rollover their underperforming investments, savings, and retirement funds (IRA / 401(k), etc.) into safe, secure, and extremely profitable California pre-developed land strategically located in the direct path of massive population growth!
Protect, strengthen, and enlarge your financaal uuture wath Calauornaa LAND! Our ACE Capital Group land investment customers enjoy hassle-free ownership of premium California land providing historically high double-digit returns without all of the countless management headaches, tenant complaints, rental collections, maintenance and repair costs, insurance expense and related fees, as well as the constant problems associated with supposed “income properties” that often turn your assets into liabilities.
Contact us today for more information on how you can transform your lackluster investments into abundant wealth with premium California land ownership!
Visit us online at www.AceCapitalGroup.com/events for information on our FREE educational seminar presentations for California Land Investments! ACE Capital Group International Headquarters 1650 Borel Place, Suite 105 • San Mateo, CA 94402 USA Telephone: 1 (650) 364-3330 • Fax: 1 (650) 574-3330
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Capital Group is a premier American real estate investment company that specializes in the research, acquisition, and distribution of premium California predeveloped land as a proven, time-tested, safe, and secure investment vehicle. The ACE Capital Group land investment strategy is commonly referred to as “Land Banking” and involves carefully researched and evaluated land parcels strategically positioned in the growth path of a major population center. ACE Capital Group land parcels are located in the direct growth path of the Los Angeles megalopolis and surround two of the fastest-growing cities in California, namely Palmdale and Lancaster. In researching, evaluating, and selecting its land investment parcels (ACE Capital Group is not a land broker, as the company owns everything it sells), ACE Capital Group applies a very rigorous, comprehensive, and stringent screening formula designed to produce ideal land investment properties with the highest capacity
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ACE Capital Group was established by Chen and Victoria Wang who have been in the business of premium California land acquisition and sales for over 40 years.
for substantial returns on each land investment parcel. Every parcel of ACE Capital Group premium predeveloped California land meets or exceeds ten critically important key criterion, which when combined will provide historically high returns on each land parcel investment. As a general long-term investment strategy, ACE Capital Group land parcels are held by their customers until their land’s value fully matures and then the land parcels are sold for a profit. ACE Capital Group was established by Chen and Victoria Wang who have been in the business of premium California land acquisition and sales for over 40 years. Now, with international headquarters based in San Mateo, California and satellite offices in both Northern California (Pleasanton) and Southern California (San Gabriel) as well Brooklyn, New York and Shanghai, China, ACE Capital Group has established itself as an international leader in the land investment industry. ACE Capital Group has held a coveted “A+” rating with the Better Business Bureau for 20+ years with thousands of successful “Land Banking” customers participating in their powerful wealth-building strategy available via
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premium California land ownership within the amazing and rapidly growing Antelope Valley. As mentioned, ACE Capital Group land investment parcels are located approximately 60 miles northeast of Los Angeles, California surrounding the rapidly-growing cities of Lancaster and Palmdale in what is commonly-known as the Antelope Valley. As the population of the Los Angeles megalopolis continues to grow (projected to increase by well over 3 million people in the next 10 years according to the U.S. Census Bureau and the Southern California Association of Governments), the Antelope Valley is located in the targeted growth path of this massive population explosion. In addition to being one of the fastest growing areas in California, this region currently boasts dozens of new design, development, and Continued on Next Page
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The Antelope Valley is also home to many large and growing aerospace and technology industries including: Northrop Grumman; Lockheed Martin; NASA; Virgin Atlantic; Sempra Energy; Delta Scientific; Boeing Aircraft; BYD (Build Your Dreams) Electric Vehicles; Kinkisharyo International; as well as home to the huge Edwards Air Force Base and China Lake Naval Weapons research facilities. The Pentagon recently announced that a new fleet of Long Range Strike aircraft (dubbed the “B-21 Raider”)
manufacturing industries, which are literally changing the face of the entire Los Angeles basin. One of these growing industries in the Antelope Valley is renewable, sustainable, alternative energy (solar thermal, solar voltaic, and wind) which makes this region the “Alternative Energy Capital” of both California and the entire USA. As a result of a recent legislative mandate signed by Governor Jerry Brown, at least half of all the electricity generated in California must come from alternative, renewable, and sustainable sources by the year 2030. This
literally thousands of new jobs, this massive defense contract will continue to provide the Antelope Valley with a global focus toward cutting-edge aerospace technologies that will pave the way for new high-tech research, development, and manufacturing facilities for many decades to come. The Antelope Valley has long been a central hub for aerospace design and innovation, and with renewed attention on its caBillionaire Warren Buffett and his BHE Renewables (a wholly pacity, resources, and highly-skilled owned subsidiary of Berkshire Hathaway) has invested over personnel for $2.5 billion in 3,230+ acres of Antelope Valley land near the state-of-the-art research and cities of Rosamond and Lancaster where he has built his development, the future of massive 579 megawatt Solar Star Project, which constitutes high-tech in the Antelope Valley the world’s largest solar voltaic plant to date. looks very bright indeed. Needless to say, the cities of Palmdale and Lancaster (as well will be designed, engineered, and mandate brings the Antelope Valley as the entire Antelope Valley) are manufactured by Northrop Grumman into clear focus as the primary certain to benefit significantly from source for alternative electric power in Palmdale, which translates into a the infusion of $80+ billion dollars long-term $80 plus billion defense in California and beyond! over the next decade, adding not only Billionaire Warren Buffett and his contract for the Antelope Valley. The thousands of new jobs, but substantial U.S. Air Force has stated that producBHE Renewables (a wholly-owned value to land and housing throughout tion of at least 100 of the new LRS-B subsidiary of Berkshire Hathaway) stealth aircraft will begin immediately, the region as well. has invested over $2.5 billion in In addition to the huge defense conwith each of the planes carrying an 3,230+ acres of Antelope Valley tract awarded to Northrop Grumman approximate $564 million price tag. land near the cities of Rosamond in Palmdale, Kinkisharyo InternaThe “B-21 Raider” project constiand Lancaster where he has built tional (a Japanese transit rail vehicle tutes the design, development, and his massive 579 megawatt Solar design and manufacturing company production of an entirely new genStar Project, which constitutes the with production facilities in Palmdale eration of highly-advanced stealth world’s largest solar voltaic plant since 2013), was recently awarded a aircraft, creating at least 6,500 new to date. Warren Buffett’s Solar Star $910 million contract with the Los Project currently provides clean, re- aerospace and technology jobs within Angeles County Metropolitan Transthe Antelope Valley and attracting a newable energy to over one million portation Authority. This contract will California residents in over 250,000 highly-skilled workforce with equaladd hundreds of new workers includly high compensation. In addition to homes. Realty411Guide.com
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ing well over 100 new subcontractors from the Antelope Valley to build new high-quality light rail cars for the Los Angeles Metro transit system. Los Angeles County Supervisor and Metro Board member Michael Antonovich cited Kinkisharyo’s recent expansion milestone in Palmdale as a key component in bringing increased domestic and foreign investment to the Antelope Valley, making it the “location of choice” for global transit vehicle design and manufacturing. Next door in the city of Lancaster, Chinese electric vehicle manufacturer BYD (Build Your Dreams) is quadrupling its workforce and expanding its thriving Lancaster / Antelope Valley electric bus manufacturing facility… again! After just five years in Lancaster, as the premier leader in electric bus technology, BYD is continually expanding its operations as it works to fulfill not only a record-setting contract for over 800 heavy-duty electric transit buses from the Washington State Department of Transportation, but also additional orders from all over the USA and the world! BYD electric buses can be seen in operating within the Antelope Valley Transit Authority as well as on the Stanford University campus and numerous locations throughout California and beyond. Last year demonstrated not only consistent double-digit gains in home prices month after month in and around Palmdale and Lancaster, but the Antelope Valley real estate market is experiencing a boom in new home construction as well. Major home builders like KB Homes, Richmond American Homes, Meritage, and many others are all in the midst of
substantial new home construction in the valley, with the Greater Antelope Valley Association of REALTORS® (GAVAR) reporting that 2016 median home prices in Palmdale and Lancaster have increased as much as 15% over the previous year. With numerous new housing developments throughout the region and simultaneous increase in retail, commercial, and light industrial expansion across the entire Antelope Valley, prices of pre-developed land are also steadily increasing, reinforcing the value and efficacy of the ACE Capital Group strategic land investments in the region. Ongoing new construction and robust economic growth projected for 2017 will continue to push the gains higher and higher as the Antelope Valley remains a prime real estate target for Los Angeles basin home buyers, developers, new businesses, and industry alike. In addition to rapidly expanding industrial, retail, commercial, and residential developments, the Antelope Valley will soon be home to a California High-Speed Rail station in the very heart of Palmdale, which will transform the daily commute to and from downtown Los Angeles to under 25 minutes! In addition, a new project with XpressWest (formerly Desert Express) is developing luxury highspeed rail service between Palmdale and Las Vegas. With over one quarter of all the annual visitors to Las Vegas coming from Southern California, the focus upon the Antelope Valley as a key transportation hub for the entire Los Angeles basin is obvious. This information further reinforces the growing value of carefully selected land investments within this burgeoning region, especially as attention upon the Antelope Valley grows exponentially every year. The uniquely powerful ACE Capital Group Land
The Antelope Valley is also home to many large and growing aerospace and technology industries... Banking product described in this article provides indisputably one of the very best solutions available anywhere for achieving your financial goals! Every ACE Capital Group California land parcel undergoes rigorous screening and evaluation by an expert acquisitions team, providing every customer with a fee simple premium land parcel, free and clear of all encumbrances with a fully recorded Grant Deed in the customer’s name with title insurance. ACE Capital Group also specializes in the rollover and transfer of IRA, 401(k), 403(b), HSA (Health Savings Accounts), Defined Benefit Plans, and other under-performing retirement / investment funds from the dangerously volatile stock market into proven safe, secure, and profitable California land ownership. ACE Capital Group welcomes everyone to explore their genuinely powerful, time-tested wealthbuilding strategy utilizing premium California pre-developed land. As the amazingly powerful Antelope Valley continues to grow and prosper exactly as predicted and projected over the years, ACE Capital Group also continues to offer a superb inventory of premium land parcels throughout the Antelope Valley at the best pricing available in the industry. Contact ACE Capital Group (see our full page advertisement in this magazine) for more information on creating or expanding your premium California land investment portfolio in order to cash-in on the ever-increasing demand for select pre-developed land by developers, home-builders, industry, as well as corporate and individual investors alike.
Learn from THE National Expert on how to use Land Trusts for Privacy, Profits & Asset Protection
She Was Mad as Hell, pg. 74
Asset protection begins with being more private in all aspects of your life (personal and business). The cheapest form of privacy for us as real estate investors is to NOT OWN PROPERTY IN OUR NAMES. This is why it is so important that you title each piece of real estate in its own Land Trust (so each parcel is insulated from the others) with the Trustee as owner... not you! There are many other benefits to using Land Trusts other than what I have discussed in this article. Please attend one of my FREE Land Trust webinars, at www.landtrustwebinar. com/411for more information. Or, if you would like, go to: www.landtrustsmadesimple.com. Also, feel free to call me with any questions. I actually answer my phone! 1-866-696-7347
FREE Land Trust Webinar at:
www.LandTrustWebinar.com/411 For more information, call Randy Hughes at:
866-696-7347
Randy Hughes
Or Visit Online:
Mr. Land Trust 40 Years Experience
LandTrustsMadeSimple.com Whether this is your first step in real estate investing or your continuing education and training, we are very excited to have the opportunity to assist you in reaching your real estate investing goals.
Asam Properties, Tampa Market, pg. 64
cause anything is possible if you put your mind to it and work hard and smart. Q: Can you share a story Organizer: Joe Boston | Administrator: Cindy Pullen about how you have helped PLEASE VISIT DALLASREIG.COM FOR DETAILS one of your clients? A: We recently trained a The Grove Resort and Spa, pg. 75 college student who was looking to get into real spa, lakeside pier; and access to nearby golf, shopping, and nightlife provides endless estate. He was looking to opportunity for both entertainment and escape. On-site amenities include multiple spend his money on an restaurants and bars, a grab-and-go market, as well as full kitchens and laundries in expensive sports car and every unit. get nothing in return. After For brokers, The Grove Resort & Spa provides a high-value sales experience. The showing him how he can Grove’s sales team offers a market-plus commission structure, state-of-the-art sales cenbuy properties and create ter as well as favorable pricing and incentives for your clients. “Whether domestic or cash flow, which will buy international, our team at The Grove works to maintain a culture in which transactions his car, he purchased occur seamlessly with the luxury resort experience,” said Traback. “Our 4-Star resort three properties... plus experience, location, amenities and pricing furnishes everything the broker and client his expensive sports car, which is now being paid need to make a smart and easy real estate decision.” for by the properties. He With all The Grove Resort & Spa offers, buyers and brokers alike will continue to is currently going to purkeep residences selling at a brisk pace. These prime offerings can’t last for much longer. chase more this year and For more information on pricing and opportunities call to 407.618.1672 or email info@ he set a goal to have 50 groveresort.com. The Grove Resort and Spa can be found at http://groveresidences.com. properties in five years. Realty411Guide.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
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