REI Wealth Monthly - Issue #48 - Meet Sunil Tulsiani and Robert Allen

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PUBLISHER

Linda Pliagas LEGAL COUNSEL Boesch Law Group CONSULTANTS Steven Kendis, GRI Bruce Kellogg ADVERTISING Jason Burke Kasey Barrett Patricia Rodriguez EDITORIAL STAFF Tim Houghten Stephanie Mojica

COPY EDITOR Bruce Kellogg Stephanie Mojica PHOTOGRAPHER John DeCindis PUBLISHED BY Pliagas Enterprises VICE PRESIDENT Nikolaos K. Pliagas CONTRIBUTORS Jay Butler Dan Harkey Geraldine Barry Jeffery Watson Kathy Kennebrook

Laura Alamery Sharon Vornholt Lex Levinrad Matt Malouf Reggie Brooks Kristine Gentry Sunil Tulsiani WEB MASTER Maria Landicho MARKETING Holly Lynn Rosa Houghten EVENTS & EXPOS Shanelle Koellish Michael Ringwald

805.693.1497 | Visit www.REIWEALTHMAG.com

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Monthly

REIWealth

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Table of Contents

11

Meet Sunil Tulsiani...

18

3 Strategies

25 31

Hang in There!

37

Liens and Encumbrances

45

Probate Leads:

51

Should New Real Estate Investors

57 63

Sand In Your Gears

70

Segregating Assets and Liabilities

79

Benefits of Diversified Portfolio Benefits

85

The Housing Choice Voucher Program

Former Police Officer Turned Millionaire Property Investor To Push Your Business to the Next Level

Feel Like Your Branding Sucks?

5 Ways to Cure That Now! Affecting Real Property

Massively Discounted Properties in Your Market that You're Not Getting...

But Your Competition Is

Attend Local REIA Meetings?

Real Estate Investing With No Money or Credit

In International Real Estate

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Learn About Sunil's Upcoming Event with Legendary Investor Robert Allen

Meet Sunil Tulsiani...

Former Police Officer Turned Millionaire Property Investor

By Anita Cooper 11

F

"For a rich person, it’s a rich world. For a poor person, it’s a poor world. But, it’s the same world."

­ Sunil Tulsiani

kitchen, that would be our

“The problem was I was 5'

bedroom, that would be

2". I was skinny. I was

everything.

short...I was not going to amount to anything and I

“And I remember our

was not a good student.”

parents fighting with the landlords all the time and we

Like many successful

What you believe about

would be moving to different

investors and

yourself...and what you tell

locations most of the time.

entrepreneurs...Sunil

yourself...is more important

overcame what many

and more powerful than

“So then we moved to

viewed as being roadblocks

what others say about you.

Canada I was told I was too

to success.

dark, too skinny...that I Why?

would never amount to

He never gave up.

anything.

Because it has a direct

“Anyways, I became a

impact on what you can

“I was a bad student all my

police officer; a uniformed

achieve.

life. My parents told me that

officer. I went from

if you don't study hard, you'll

becoming a uniformed

not amount to anything.

officer to a detective, to a

“I was born in India,” says Sunil, “and I came to Canada in 1981.”

police negotiator...and at the My dad used to motivate me

end, before I left the police

by saying if you don't study

force, I became the platoon

“Growing up we were

hard you will beg on

commander.

extremely poor. I would say

streets...and so that was the

we used to live in other

environment I grew up in.

people’s homes as paying guests, all 5 of us. My

“Then, one day my uncle

parents lived with us. If

comes to me and says you

somebody had a 2 bedroom

should be a police officer.

condo, or apartment, we

Here I was, 15 years old in

would rent the one bedroom,

Toronto, and so I looked up

and that would be our

to the police officers.

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Meet Sunil Tulsiani...

Former Police Officer Turned Millionaire Property Investor

“And yea, so it was an

Investment Club, the

thought I was going to open

interesting life, and the

catalyst to his transformation

up a coffee shop or

whole point here is that it’s

from platoon commander to

something like that!

truly...I know people have

successful property investor

heard this before...but if I

began with the words that

“Anyways, they thought I

can do it, then anybody can

nobody wants to hear…

was crazy; I went all the way down. My detachment

“And if someone had asked

but then one day my wife

commander calls me in and

me to get up on the stage

comes to me and says,

said okay, it's been

for 30 seconds and say

“We’re having a

approved, but he said

some words, I would melt.

divorce...you don’t spend

something which I really

time with us. You don’t

didn't like at that time, but I

“Today...I speak around the

spend time with our

love the fact now, was "we

world to big audiences.

children.”

know you'll be back".

“In fact, we just signed a

“When I looked at all my

deal where I just came back

friends I saw that they were

from Lithuania, and I’m

all divorced...unhappy...poor.

going to be sharing the stage with Brian Tracy in

“So I thought, okay...well I

front of over 1200 people.

keep saying that my family is the most important, but am I

“So not only from an

acting in a way that

investor’s point of view, but

suggests that? And I

from a confidence point of

realized I was not.

view, from a success point of view, from a public

“So I decided to go to my

speaking point of view, you

commander and said I would

know it’s a living testimony

like to have a one year leave

that anyone can do what

of absence and they thought

I’ve done.

I was crazy.

While Sunil is now known

“I had no experience in any

as the Celebrity Real Estate

business, entrepreneurship

Wealth Coach and founder

or real estate...I did not

of the prestigious Private

know I was going to be a real estate success at all...I 13

Meet Sunil Tulsiani...

“I was enjoying my career,

Former Police Officer Turned Millionaire Property Investor

up the ladder and came back

do it.

“And to me that was almost like him telling me that I’ll fail.”

That same tenacity that helped Sunil rise in the ranks of the police force served him well as he discovered his skill in growing wealth through real estate and coaching others to success.

“Well one day I opened up a newspaper in Toronto, and there's this guy named Robert Allen who says you can buy properties, nothing down.

“So I picked up the news, I threw it away, and a few minutes later I picked it back up. It was right in my face again, and so I went to that event, it was a two hour event and I bought a $5,000 dollar course of Robert Allen’s; it was a 3 day event.

“And that course changed my life completely.

“I bought and sold 77 properties the first year. I became almost an instant millionaire, and then I opened up a real estate club and now I have the largest elite real estate club in North America, including America.

The Private Investment Club stands above many other real estate investment clubs because it’s a “doing” club. When members meet and network with each other they’re focused on getting things done, not just talking about it.

Meet Sunil Tulsiani...

Former Police Officer Turned Millionaire Property Investor 14

Like the elite investors who join his club ­

Anita Cooper is the founder of

when Sunil wants to do

Northwoods Writer, a marketing

something he goes out

resource for real estate

and does it.

professionals. Error­free, persuasive writing that meets

“My goal has always been to go and hunt down all my heroes

or exceeds expectations is her

that have changed my life; namely Tony Robbins, Jack Canfield,

obsession...that and

Brian Tracy, Robert Allen, Doctor Deepak Chopra, Oprah...and

coffee...black.

to not only shake hands with them, take photos with them, but She lives with her family in the

also do business with them.

beautiful Northwoods of “Well many years later after taking his course and achieving

Wisconsin when they’re not

great success in real estate I was able to connect with Robert

cruising the highways and

Allen. I was able to tell him look, Robert Allen, your course

byways on the lookout for

changed my life!

something new and interesting or at least calm and relaxing.

“And he was very excited and we ended up doing business

“This event is similar to the event that I took and we're offering the general ticket, for which I paid $5,000 for to a small, select group of people for absolutely zero!

“So if you want to have access to these 2 day event tickets...the same kind of event that launched my multi­million dollar career as a real estate investor and celebrity real estate coach...come to our event on September 22nd and 23rd.

If you’re ready to learn how to build a real estate portfolio that can help you retire comfortably within five to ten years, click here to book your complimentary tickets now...before we reach capacity.

“I look forward to seeing you there!”

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Former Police Officer Turned Millionaire Property Investor

“Nothing Down” event.

Meet Sunil Tulsiani...

together...and now, we're bringing Robert Allen to Dallas, for the

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JUNE 12, 2018 GERALDINE BARRY

BUSINESS BUSINESS, REAL ESTATE, SILICON VALLEY, SUCCESS

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s an entrepreneur, real estate investor, and writer – someone who has lived and breathed

Three Simple Strategies to Create Efficiencies & Results:

1.

business in Silicon Valley for over 20 years, I’ve experienced the roller coaster that is typical

Invest in high caliber people:

in the life of the entrepreneur.

Depending on the size of your

Running a busy business,

business – a couple of high

publishing a magazine, raising

producing, results oriented

two children – it was stimulating, and even invigorating at times, but also grueling.

team members who buy into the vision can transform the business by invigorating and injecting a new lease of life into

I graduated from university with a degree in

the team. One great addition is better than 10

entrepreneurship in 1994. (Before that was a

mediocre ones.

popular major.) I’ve always enjoyed business, and love living in the entrepreneur capital of the world, Silicon Valley, where a chance meeting at Starbucks can turn into a stimulating conversation with a start­up genius.

My personal journey includes building a business from the ground up over a 13­year period and selling it when I no longer enjoyed

For example, I was struggling with a heavy

what I was doing. As an immigrant who came

workload, and when I analyzed where I was

here from Ireland with $500 in my pocket and a

spending the majority of my time, the results were

dream, I never had a problem working hard. As

enlightening. I discovered that a large portion of

a woman however, I was risk averse, and a little

my week was spent putting out fires, and dealing

rigid in how I did things.

with operational tasks. While important, these are not game­changers in any business, and could be

Overseeing a business can be grueling even for

easily delegated.

the most efficient entrepreneur. However, there are strategies to deploy to increase

3 Strategies to Push Your Business to the Next Level

effectiveness. Here are three.

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Armed with this new knowledge, I

considered previously. Keeping in mind

decided to hire someone to oversee

that all outsourcing companies are not

operations and wrote an extensive job

created equal, get a good referral. Don’t

description for that position. With a little

trail blaze…

effort and a lot of clarity, I found the perfect person who brought her own gifts

Accounting, marketing, social media

to the table. She surprised and delighted

strategy and implementation, and

me very quickly with her competence,

numerous other tasks, can be outsourced

energy, and operational strengths. That

(locally or nationally) or off­shored (out of

position filled with a more appropriate

country). In either case, the recipe for

person freed me up to focus on growing

success includes having a clear vision

the business.

and itemized list of what needs to be

2.

accomplished/handed off. Selecting a

Outsource the tasks that are difficult and not your core competency:

reputable company to ensure that you get good quality service is key. One point of contact at each end creates continuity and simplifies the process.

This step can create spectacular results as well as allowing business leaders the time and mind space to explore opportunities to grow and develop the business.

As an example, every year tax season rolls around with increasing speed – from

The result for me is peace of mind.

my perspective, my least favorite season.

Outsourcing is available 52 weeks per

I was anxious about the book­keeping,

year with more qualified staff that you can

accounts and figures that needed to be

easily scale to accommodate your

put together for tax preparation purposes.

business cycle. Further, it creates

Other entrepreneurs were of the same

diversification in terms of staff. If you have

mind I discovered. I elected to address

one staff member primarily responsible

this by outsourcing my accounting and

for the accounting – if that person leaves

bookkeeping needs, something I had not

suddenly you have a problem.

20 3 Strategies to Push Your Business to the Next Level

3.

Marketing & Branding are keys to your success: One of my clients has a strong business model but neglected to project and invest in an online presence.

Gone are the days when

Appearances still matter. Intentionality is a key piece here, what

websites cost thousands of

we focus on grows bigger. Once we addressed these

dollars. Hire someone and

weaknesses, business increased the following year by 36%.

task them with improving your image, website and

I’ve enjoyed some success, but in hindsight, had I been focused

online presence, keep it

less on the day­to­day operations, I could have attained the

simple and elegant. Revise

same results in a much shorter period. When one is too focused

your logo, update your

on running the business and managing the details, growth

professional photo, take

suffers, and opportunities for additional revenue streams can be

electronic payments with

missed. Additionally, as human beings we thrive on

Square, have a professional

companionship, and when we build teams that create synergy,

email signature, update your

results are the inevitable outcome, and we thrive.

LinkedIn profile. Reputation management and

Remember, have fun along the way – life is short and the bottom

addressing poor online

line with business is that it is all about the relationships. They

reviews is important also.

make the world and business turn…

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Push o t s e ategi t Level r t S 3 e Nex to th

Yo

ess n i s u ur B

Geraldine Barry

3 Strategies to Push Your Business

Geraldine Barry emigrated to California from Ireland with only $500 in her pocket. Through her

to the Next Level

determination, planning, organizational skills, and sense of humor, she has created a life where she can do what makes her heart sing every day.

Her philosophy of investing strategically in real estate has put two children through private school, gives her the freedom to live a life dedicated to making a positive change in the world, and has assured her secure retirement – and all this as a single parent.

Widely regarded as an “Icon in the Silicon Valley real estate investing world,” Geraldine provides investment counseling and personalized financial plans and investing opportunities to real estate investors, high net worth individuals, and real estate newbies alike.

Geraldine founded and previously served as president of the SJREI Association, Silicon Valley’s hub for investment inspiration, forging connections, and building a reputation for calling the markets and leading by example with her own portfolio of investments. She was publisher/founder of REI Voice magazine and in that position interviewed every major player on the real estate landscape from economists to industry thought leaders.

Geraldine attributes her success to a willingness to learn along with others, a steady supply of green tea, and the habit she learned from her father of being productive and beginning each day in the early hours of the morning.

Geraldine lives in Silicon Valley, the entrepreneurial capital of the world and loves it, with her two children Colin and Claire 22

Our processes help clients achieve a rapid, low risk and sustainable improvement in business KEY BENEFITS OF OUR OFFERINGS INCLUDE: ♦ Cost Savings of 40%+ ♦ Strong Finance and Accounting domain expertise ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦

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IntellisysTechnology, LLC Geraldine Barry Silicon Valley Branch Tel:408.396.7177 www.Intellisystechnology.com

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H AN G I N TH ER E!

By Kathy Kennebrook (The Marketing Magic Lady) 25

I

recently read that the definition of an Entrepreneur is someone who jumps off a cliff and builds the plane on the way down. I would have to totally agree with this sentiment. Jumping off into “Never­never land” is almost “par for the course.”

When we first started our real estate investing business my husband used to say I would go out and make the mess (find the deal) and he would clean it up (get the inspections done and get the rehab going). But, my Friend, HANG IN THERE! The second deal we ever did in our real estate

I have always been one of those people who has to jump in first and do it and then fix it later. You need to be able to tame the fear monster and jump in and get some deals done. You will want to get some education in order to do the real estate investing business, or work with someone who already has the education until you figure things out. Working with a partner or a mentor is one good way to get started. I have a mentoring program available and I have many students who have done a ton of profitable deals.

However, your own education is going to be an ongoing process and you need to do it. If you try to do deals without having any idea what you are doing, you’re going to get burned out quickly. You will not get offers accepted, you won’t know what to do if you do get an offer accepted and you may not make nearly as good a deal as you could with a little education under your belt.

business was a subject to deal. The seller just wanted us to take over the mortgage payments on his house so he could walk away. There was $145,000 of equity in the deal that I didn’t want to lose out on even though I had no idea what I was doing. Heck…I had no idea what taking a property subject to even was at that point. So we just wrote down on yellow legal pad paper what we had agreed to with the seller. I then went back to my local real estate club and found someone to help us do the deal. He charged us $10,000 for his help in creating the paperwork to legally do the subject to deal. Ultimately our paycheck was $51,000. So yes we built the plane on the way down and it was very profitable for us to do so.

Getting started as a Real Estate Investor requires you to at least jot down your “TO DO”

HANG IN THERE!

list and begin making a plan as you go!

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HANG IN THERE!

Remember: Your real estate EDUCATION is a process!

There are several things you need to do in order to become a Real Estate Investor.

Sitting in front of the television watching re­ runs or playing video games isn’t one of them.

You will be able to find lots of reasons to put off getting started in the real estate business. My personal favorites were “my job is keeping my too busy” or “the kids need me” and “What if I mess up?” Once I started making a specific plan and put it in writing, things started to happen. I started keeping a detailed planner outlaying what I have to do the next day, the next week, the next month, etc. This helped to keep me very focused and moving ahead in a specific direction. This will make your business grow faster than you know. You will be able to track tasks, deals, and you can keep your appointment schedule organized as well.

Always remain FOCUSED! Even after all the years I have been investing in real estate, I still go to seminars and read books to learn even more ways to do great deals. Continued education is the KEY. In the beginning, I learned enough in a very short time to do a lot of profitable deals and you can too. But I wasn’t afraid to just jump in and get a deal under contract. Once you get active in the business you will run into a lot of different kinds of scenarios concerning sellers and situations.

This is one of the reasons I offer a mentoring program to my students. If they get stuck on a deal or an offer, they know where they can get their questions answered. So, they know they are “building their plane” on the way down.

Please understand that continued education is a key to YOUR success.

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A “Hang in there” mentality must always be maintained. You will initially make mistakes. We are human. But eventually, YOU will be very successful. So, HANG IN THERE! For all the information you need on adding mentoring to your business so you can “build your plane” check out my website at www.marketingmagiclady.com or call my office directly at 941­792­5390. I offer an amazing six month mentoring program for my students. Many of my students have done many deals and made huge profits in their real estate business by working with me as their mentor. I look forward to working with you too!

Kathy Kennebrook Kathy Kennebrook is the ultimate success story. She spent over 20 years in the banking industry before discovering the world of real estate. After attending some real estate seminars this 4 foot 11 mother of two got really excited and before you know it she’d bought and sold hundreds of properties using none of her own money or credit.

Kathy holds a degree in finance and has co­authored the books­ The Venus Approach to Real Estate Investing, Walking With the Wise Real Estate Investor, and Walking With the Wise Entrepreneur which also includes real estate experts Donald Trump, Suze Orman, Robert Kiyosaki, and Dr. Wayne Dyer.

She is the nation’s leading expert at finding highly qualified, motivated sellers, buyers and lenders using many types of direct mail marketing. She is known throughout the United States and Canada as the Marketing Magic Lady. She has put together a simple step­by­step system that anyone can follow to duplicate her success.

Kathy has been speaking throughout the country and across Canada for over 14 years and has shared the stage with Ron LeGrand, Donald Trump, Dr. Phil, Dan Kennedy, Mark Victor Hansen, Ted Thomas and Suze Orman to name a few.

Kathy is going to share with you how she generates a seven figure income by mailing a handful of letters throughout the year to highly selected targets by knowing exactly what to send them, who to send them to and exactly how to deliver her message.

She will teach you the secrets of pre­screening and automating your marketing and follow up systems to put your entire Real Estate business on auto­pilot.

Dagger LLC P.O. Box 14343 Bradenton Fl 34280 941­792­5390

HANG IN THERE!

941­795­6887 (fax) kpaddler@att.net

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Feel Like Your Branding Sucks?

5 Ways to Cure That Now!

By Sharon Vornholt 31

F e e l L i ke Y o ur Br a nd i ng Su c k s ?

5 W a ys t o C ur e T ha t N ow !

H Have you ever felt invisible in your

change, but you have no idea where to start when it comes

marketplace? If you can honestly

to branding

answer yes to that question, I’m 100% sure it’s because your

When someone has a strong brand it’s because they were in

branding sucks.

charge of building their brand.

Does this sound like you?

What Are the Major Components For Up­leveling Your Brand?

• You feel like the best kept secret in town

• Maybe you have a good reputation, but you’re not well

There are a lot of components to a brand, but when you think about up­leveling your brand, there are 5 things to focus on first.

known (we’re not counting your friends and family.

Remember that your brand is how people feel about you.

• You’ve been at it a while and the customers you have are happy, but you just don’t have enough of them

• You’re doing okay, but you know

Here are My Top 5

#1.Your Compelling Story

that’s just not good enough

• You’re losing out to competitors

People might not remember much about you, but at the end

because their marketing is better

of the day, they will always remember a great story. Crafting

or they’re well known

your compelling story is critical. You want to put together

• You know something needs to

your story in a way that compels people to want to work with

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you rather than your competitor.

Before you even say it….everyone has a story.

#3. A Great “About Me” Video on Your Website

a root canal than have a professional photoshoot, however this is essential. If you check around you can find someone to do this for you pretty reasonably when

Maybe you didn’t live on the

You probably know that you

you consider the huge impact

streets or have a near fatal

need a great about me page

it will have on your brand.

illness, but YOU have a

on your website. This page

story.

should also have your

#2.Your Customer Avatar

compelling story on it. But did you know, that having a

#5.Your Authority Book

professionally produced “about me” video on your

So, you think you don’t have

page can dramatically

enough expertise to write an

What exactly is this?

increase your credibility?

authority book?

Your customer avatar

Now I’m not talking about a

I want to tell you that just

represents the person that is

quick iPhone video. I’m

simply isn’t true. If you have

your ideal customer or your

talking about a quality

been in business for any

dream customer. When you

professional video. (These

length of time, you have a

get clear on exactly who

can be quite pricey at times,

book in you. Writing an

your ideal customer is, you

but in this series you’ll find out

authority book is the ultimate

stop trying to attract

how to get one.)

credibility piece.

#4. Professional Photos

Take a look at your

“everyone”. Everyone is NOT your ideal customer.

When you are just marketing to the masses, what

competitors for just a minute.

Who in your immediate area

happens is you end up

Don’t we all

has written an authority book?

attracting the wrong

hate this one?

I’m pretty sure that answer

customers. You know – the ones you hate working with.

“almost no one” no matter Most of us would rather have

where you’re located.

Feel Like Your Branding Sucks?

5 Ways to Cure That Now! 33

Sharon Vornholt Sharon Vornholt is the owner of Innovative Property Solutions, LLC in Louisville, KY. Sharon owned and operated a successful home inspection company for 17 years. She began investing in real estate in 1998 and became a full time real estate investor in January of 2008.

Sharon specializes in wholesaling, and is also an experienced landlord and rehabber.

In addition, Sharon is an internet marketer and also writes articles for several national real estate sites. Sharon is the author of a popular real estate blog called the “Louisville Gals Real Estate Blog”.

For your FREE REPORT “Probates and Absentee Owners: Your Fast Track to Real Estate Riches”, stop by her blog at: http://LouisvilleGalsRealEstateBlog.com.

FREE BRAND ASSESSMENT AT https://louisvillegalsrealestateblog.com/brand­assessment

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Liens and Encumbrances Affecting Real Property.

By Dan J. Harkey

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W

hat is a Lien?

A lien is a legal right, usually referred to as a security interest, in real or personal property given to a creditor to hold and possess as consideration for a loan. The creditor /lender has a charging interest against the collateral and may seek possession in the event of default by the borrower. A borrower willfully grants the security interest in a real property by agreeing to sign instruments called a deed of trust or mortgage which are recorded in public records as an encumbrance to the real property in consideration for the loan. A lien refers to a monetary claim which may be attached to one or more properties.

What is an Encumbrance?

substandard condition, lis pendens, property settlements,

L i e n s a n d E n c u mb r a n c e s Affecting Real Property.

divorce decrees, subordination, An encumbrance refers to a

non­disturbance and attornment

claim and/or agreement to

agreement (commonly

enforce the rights and

abbreviated as an “SNDA

obligations relating to a

agreement”) parking

property. There are literally

easements, reciprocal usage

dozens of items that may be

and parking agreements,

recorded in public records that

signage easements, property

create either a lien or an

tax, federal or state tax liens.

encumbrance on the property.

etc.

The first will be the original tract map. Then comes utility

The lending industry sometimes

easements, other easements,

uses the terms lien and

government mandated

encumbrance interchangeably.

requirements such as historical

However, a lien is a monetary

registries, association by­laws,

charge against the property. All

ownership and partnership

liens are encumbrances, but

agreements leases; various

not all encumbrances are liens.

public notices such as notice of

They both create a claim against

weed abatement, notices of

the property that impacts the

38

transferability and restricts the

Each document that is

recording of a divorce decree

free use until the claim is lifted

recorded on the property may

or a quit claim relinquishing

or is conveyed.

also contains an agreement,

one’s interest in the property.

How does an attachment to a property occur?

considerations, prohibitions, and risk that must be dealt

This body of knowledge and

with. A recorded trust deed

law and the process of

may have 20­40 pages of

recording and maintaining the

legalese that need to be

documents becomes very

In the United States we have

reviewed. The document

important when establishing

a government system referred

may contain clauses such as

the priority of a lien or

to as the municipal recorder’s

“due­on­sale”, “due­on­further

encumbrance. California law

office. The recorder’s office

encumbrance,” etc. This

regards lien priority as “first­in­

has the task of maintaining

subject relating to clauses in

time, first­in­ right”.

public records, documents;

loan documents should be

and in this case, relating to

addressed in another article,

real estate ownership.

because of its tremendous

Additionally, their task

complexity.

What is a first, second and third lien priority?

maintaining records, making

Sometimes a property owner

Lien priority is related to the

those records available and

may record changes in

point of time that the

identifiable to the public.

amends ownership status.

document is recorded in the

Those public records can

An example would be

public records office. When a

relate to both voluntary and

changing or conveying the

document is recorded it is

involuntary rights and claims.

title of a property from

date stamped and given a

“husband and wife as joint

sequential recording reference

Each of the above creates a

tenants” to a “revocable

number. If a borrower or

cloud on title that must be

family trust”. Another

his/her title company recorded

dealt with, either accepting to

example may be the

3 liens at the same time on

includes recording and

property with the conditions or clouds, removing from title,

Liens and Encumbrances Affecting Real Property.

releasing, modifying, or rejecting the property because the risk of accepting all the conditions is go great or not practical.

(AMC’s) 39

one property, that would create a first, second,

position. A reconveyance is a written form

and third lien, regardless of the dollar amount

instructing the recorder to remove and release

of each lien. The first lien is considered a

the lien from public records.

senior lien, the second and third liens are junior liens. with the second lien being senior

There are written agreements that can be

to the third. After the documents are recorded

created by principal parties that modify the

and scanned into the public records

priority of a lien, or multiple liens. One is called a

computers the borrower will receive the

subordination agreement that can be recorded

original documents back for safe keeping.

that may make a lien junior to another lien even though it was recorded earlier with an earlier

What insures the order of the recording. How do

date stamp.

you know that the recorder did not make a mistake and record the documents out of

California law regards lien priority as “first­in­

order? You may order and pay for an insurance

time, first­in­ right”. California law also provides

policy referred to as title insurance from a title

for exceptions for some types of liens whereby

insurance carrier. The policy guarantee’s your

some liens are given “skipping power” to the

lien priority position or may be required to pay

front of the line. Government mandate permits

insured claim. If you were to go to the

certain liens to be advanced so that they

recorder’s office yourself, stand in line, and have

become senior in priority to other liens.

the documents recorded you could check the

Mechanic’s liens, meant to ensure that

sequence of recording yourself. But, generally

tradesmen and contractors are paid, is an

your recording of documents is done by a title

example of a priority lien with “skipping power”.

company in relation to a sale or loan transaction

That right is protected by the California

in which you are a principal party.

Constitution, and further enumerated in the California Civil Code (Section 3110 et seq.)

Let’s assume that there was a first lien of $100,000, a second lien of $50,000, and a third lien of $25,000. on a property that you own. If you paid off the first lien, the second would become a first lien, and the third would become a second lien. If you were to refinance and consolidate all three liens, then all three liens would be reconveyed and removed off public records. A new recording, with a fresh date stamp and recording number would be placed on public records reflecting a new first lien

40

s e c ran rty. b m ope u c n l Pr E n d R ea a s t in g n e L i f f ec A

who have written agreements

the “skipping power” of

with dates prior to the

mechanic’s liens. These

recording of a new trust deed

relate to technical

will have a right of occupancy

requirements such as when

and enforcement that is

the construction began and

senior to the new lien. The

the process that the claimant

tenant’s rights will run with

must follow to enforce that

the property until the rights

lien. Even in situations where

expire or are modified in

the mechanic’s lien appears

writing.

to have been “wiped out” by a senior lien holder at a

A real estate lender may

foreclosure sale, the lien is

require some modification of

not automatically expunged.

the statutory priority by using

For more specific

a written agreement between

requirements for mechanic’s

the borrower, the tenant, and

liens the lender should work

of course, the lender. There

with counsel knowledgeable

are times where it may be in

about construction law and

the lender’s best interest not

mechanics lien law.

to preserve the tenancy in which case a straight

Other exceptions relating to

subordination may be used.

“skipping power” may include

Any change in the chain of

issues relating to property

title, whether it is a sale, a

taxes, special tax

new loan or a foreclosure,

assessment districts, and in

can cause the priority of

some cases homeowner’s or

tenancy to be lost.

mutual property associations.

In some cases, the lender As a rule, a written tenancy

may wish to preserve the

agreement has “first­in­time,

tenancy of credit tenants in

first­in right” priority. Tenants

order to preserve the value of

41

Liens and Encumbrances Affecting Real Property.

There are limits, however, on

the property. A subordination, non­disturbance and attornment agreement (“SNDA agreement”) may be the appropriate document to have recorded. SDNAs are agreements between a tenant and a landlord that lays our certain rights of the tenant, the landlord, and other third parties, such as the landlord’s lender or a purchaser of the property.

If I can answer questions or I refer you to good service providers, I am only a phone call away. Please visit my web site www.danharkey.com to read more of my articles related business, real estate finance, and humor & prospective.priority.

Liens and Encumbrances Affecting Real Property.

Dan Harkey Dan Harkey is a business and private money financial consultant. I have been active in the real estate and financial services industry since 1972. I have taught courses on private money lending and underwriting of commercial/industrial properties at over 350 educational seminars. This and many other articles I have written are available to read on my website Danharkey.com You may also reach me at my office (949) 521­7115 or by e­mail at dan@danharkey.com you can also find me at

Dan J. Harkey Business and Private Money Finance Consultant Mobile: 949.533.8315 Office: 949.512.7115 dan@danharkey.com The article is for educational purposes only and is not intended as a solicitation

42

43

44

Probate Leads: Massively Discounted Properties in Your Market that You’re Not Getting…But Your Competition Is.

.

D . h P , y r t n e G e n , i n t s o i i t r a nov

By K f In L e a d s o

P V te a b o r U S P

45

"M

y market is crowded with

Increasing Numbers of Properties Available at a Huge Discount

rise and fall of the 2007 bubble. They are often strapped with debt. When they inherit property from their

investors Baby boomers believed in

parents, they suddenly find

everyone is chasing the

collecting assets like real

themselves responsible for

same deals.” That is usually

estate. Many are cash poor

paying all of the estate

what we hear when we first

but asset rich. They often

expenses with little cash to do

speak to a potential

own property outright with no

so. Also, inherited property is

customer. They are often

mortgage or at least have a

often split between multiple

looking for a source of leads

lot of equity in their property.

family members, so offering

where there isn’t “so much

Often their homes are in

$20,000 less on a property

competition," and they are

great condition with only

may only be a $5­10,000 loss

thrilled when they begin to

basic updates needed. We

per person. Since the heirs

realize we have a solution

are entering a phase where

didn’t put money into the

for them – marketing to

baby boomers are passing

property, unlike a foreclosure

probate properties.

their assets on to their heirs.

or divorce, they are more

and

interested in selling the

Probate Leads: Massively Discounted Properties in Your Market that You’re Not Getting… But Your Competition Is.

Generation Xers and

property quickly than they are

Millennials, who are

in trying to get as much money

inheriting the assets of their

out of the property as possible.

parents, lived through the

They want cash – quick.

46

g forgotten or remain in state of familial limbo but still possess value.

Probates may also include business interests. More and more, heirs don’t want to be bothered with assuming control of the family business. And yet there is opportunity there as well.

Studies have shown that over the next 30­ 40 years, more than $30 trillion is projected to transfer from baby boomers to their heirs.

This means that there will be a lot of properties passing through probate.

Moreover, when property is inherited, most often the heirs will sell or transfer the title of the property within 18 months. Probate leads are a great and growing source for smart real estate investors.

Many Types of Properties Available in Probate Real estate tops the list of probate assets that can frustrate heirs and impede the probate process. Anything from residential homes, to rental units, vacant land, office buildings, and even commercial property may be among the inherited property the Executor is left to negotiate.

Personal assets also generally fall into the probate property category. These include items such as valuable cars, heirloom pieces, pianos, jewelry, antiques, and other

A knowledgeable probate investor can work with the Executor, ease the burden of their job, and creatively get the family the cash needed to clean things up while creating their own income opportunity.

How to Get Probate Leads The good news about probate is that it is public record and available at all county courthouses across the country. The bad news is that each county handles probate leads in a different manner. In some cases, it is a painstaking process of daily visits to the courthouse to manually collect probate data. In other cases, an individual can sort through public, county records that are available online. Either way, researching and collecting probate leads on your own is very time consuming and ineffective, which is why this source of leads is often overlooked. However, one company, US Probate Leads, developed around the need to make probate leads simple and easy to use. US Probate Leads has been walking people through this process now for over a decade.

such pieces that may have been lon

Probate Leads: Massively Discounted Properties in Your Market that You’re Not Getting… But Your Competition Is.

47

A Probate Investing Program US Probate Leads has literally taken the lead on providing timely and local probate filings to investors looking for a growing source of access to motivated sellers. We have a large team of researchers dedicated to doing the legwork of gathering and organizing probate leads so that you only have to buy and work those leads.

Investors can purchase leads at whatever level (25/50/100/250) they deem appropriate. Or, you can invest in a plan which provides you all of the leads available within a given county. A very affordable pricing structure and a guaranteed “in” as far as knowing what is available in probate filings, make this a wonderful opportunity for savvy investors. US Probate Leads’ flexibility is perhaps what makes their program most attractive. Getting in at whatever price point you’re comfortable with, and however many leads you can manage is certainly feasible.

Probate Leads Available Now – In Your Area US Probate Leads has access to virtually any county in the United States, meaning regardless of where you live, you can start receiving leads monthly. Go to the US Probate leads site: www.usprobateleads.com click on your state and get started. To get a 10% discount, place an order before September 30th.

Go to realty411.usprobateleads.com. Use discount code “Realty411.” Or you can contact them directly at: (877) 470­9751. Now is the time to make your mark in this little­known niche – never before have more properties become available than will in the coming years. Becoming a US Probate Leads subscriber could really be the start of a whole new future, a more lucrative career, and an exciting investment opportunity.

Probate Leads: Massively Discounted Properties in Your Market that You’re Not Getting… But Your Competition Is.

10% OFF Place an order before September 30, 2018 to get 10% off your first order!

Go to realty411.usprobateleads.com.

Use discount code “Realty411”.

48

49

50

Should New Real Estate Investors Attend Local REIA Meetings?

By Lex Levinrad

51

F

ind the local Real Estate Investment Club in your area and go to the meetings. Attend each meeting religiously. Get involved, become a member and make new friends with other investors who want to learn about real estate as much as you do. Network with rehabbers, wholesalers, investors, mortgage brokers, title companies and realtors at these meetings. If you have very little money to get started investing then know that there are partners, private lenders and hard money lenders at these meetings that will

help you. Don’t bring a friend who is not interested in real estate. They will want to leave or they will bring their own opinions which will influence yours. Do bring a friend who is as passionate as you are about learning about investing in real estate. If you are a realtor keep in mind that there are many new concepts that you will learn about that you may have not been aware of previously. Be open to that and also be open to new ideas.

Network effectively. Make sure

stock and pay someone to

you have a business card with a

design your business card (you

photo. Your card should describe

can do this on www.upwork.com).

exactly what you do and who

Do not act like a know it all at

you are. Your website on your

meetings or make like you know

card should match what you do

more than you do. You are there

and who you are. If it doesn’t you

to learn, and you learn best by

will not be taken seriously. If you

listening to others. Find out the

are a wholesaler then have a

smart people who are having

card that says that. Make sure

meaningful conversations and

that you get a good quality

introduce yourself and listen. If

business card and don’t go for

you don’t understand something

the cheapest option. Get a

ask. Most investors are more

professional logo and picture

than willing to help new

taken and use a thicker card

investors.

Should New Rea l Est Investors Attend ate Local REIA Meeti ngs?

52

Do not rush to shove your

going (especially if is

these meetings and they will

business card into

raining or the weather is

often end their presentation

everyone’s face at every

bad).

with a sales pitch. Look past

opportunity. Instead make

that. Learn from the one­

the conversation about the

Other meetings will be

other person (amazing

amazing and you will learn

concept). Ask them

new things and make new

Remember you don’t have to

questions about what they

connections with other

sign up for every item that is

do and be interested. Have

investors.

hour presentation.

presented to you

one or two meaningful

(beginners pay

conversations at

attention). Avoid

every meeting

the shiny new

with someone

object syndrome

new. After a few

where every

meetings you will

week or month

begin to recognize

you are on to a

the familiar faces.

new strategy

You will also notice

or technique

the newbies that

that you

show up at every

heard about.

meeting. Those are

There are

your potential bird

no

dogs. Don’t skip

shortcuts.

meetings. That is what newbies do. They show

Learn and focus on one Remember, you

thing. Become good at that.

up once or twice and then

need to know people and

Then move on to the next

they don’t come back. If you

they need to know you. The

thing. Be wary of charlatans.

want to wholesale or fix and

way you do that is by

Every REIA has them. If you

flip houses you will need to

showing up every month at

are the beginner in the room

put in a lot of effort. Start by

the meeting regardless of

then as Warren Buffett says,

attending meetings

how small it is or how many

“if you don’t know who the

religiously and look at it as a

people attend. Attend more

sucker is then it’s you”. So

work obligation like an

than one REIA meeting if

be cautious of the scam

important appointment you

you can and there are

artists out there (especially

can’t miss. Some meetings

multiple meetings in an

the guys promising you low

will not be great and you will

area. Yes, there will be

interest hard money loans

question why you bothered

speakers presenting at

with upfront fees).

53

Should New Real Estate Investors Attend Local REIA Meetings?

As a beginner your job is to listen and to learn and network and to educate yourself. Only work with people that have referrals and that other members say good things about. The good people will be easy to spot. They will always show up, will have lots of people who have done business with them, and will have many people who say good things about them.

Use your bullshit detector radar. Scam artists are quite easy to spot. Go with your gut feeling about a person. 9 out of 10 times you will be spot on.

Sh

e al E R w e N ou l d

s t at e

s At t e I n v e s t or

n d Lo

e e t in M A I E R c al

gs ?

Lex Levinrad Lex Levinrad is a South Florida real estate investor that has been wholesaling, buying, fixing and flipping homes for the past 10 years. He has written 7 books about investing in real estate, and is a nationally renowned real estate speaker and coach.

Lex’s Website: http://www.lexlevinrad.com.

54

55

56

Sand in Your Gears

By Jeffery S. Watson,

National REIA Director 57

Sand in Your Gears

W

hile walking near a sandy beach, I passed a stand where bicycles were rented on a self­serve basis using a credit or debit card. There was always a breeze blowing in from the ocean. It didn’t take long to realize that even though these were single­speed bicycles, it was highly likely that sand was getting into the gears. You don’t need a degree in engineering to realize that this is a cause of friction, and friction can cause things to break down.

This made me think about some

Contractor and handyman

of the “friction­causing sand” I

drama is another form of

allow to blow into my investing

unnecessary friction that I don’t

deals. One of the things that

want to have blowing into my

comes to mind is unnecessary

life. Working with these

tenant drama. Tenants are

tradesmen is important, and

important customers in my

sometimes they need a friendly,

business; however, I don’t need

sympathetic ear; but I also have

the friction that results from

to make sure they understand

unnecessary tenant drama

that our relationship is a

spilling into my life. I have to set

professional one, and I am

filters and barriers to make sure

ultimately concerned about

the phone calls and text

getting the job done the right

messages don’t overwhelm me.

way, on time and on budget.

58

I could list other illustrations of “sand” blowing into my investment gears, but the bottom line is that the biggest cause of unnecessary friction in my investing business is ME. There are things that I arbitrarily, accidentally or without wise discretion allow to come into and affect my business.

Maybe you, like me, need to engage in a little preventive maintenance. Get the “bikes away from the sandy shore and clean them up” before you put them back out into service.

As always, I value your feedback. If you found this article helpful, please share it with a friend.

Until next time,

Jeffery S.Watson

Sand in Your Gears 59

Jeffery S. Watson Attorney As a frequent and popular guest speaker Jeff Watson has become a recognized thought leader and innovator in the field of real estate investing, asset protection, wealth building and self directed retirement account transactions.

Jeff has been a full­time attorney with an active trial/hearing practice for more than 22 years. During his career he has tried over 20 civil jury trials and thousands of contested hearings.

As a contingent fee attorney Jeff has a unique perspective in the field of asset protection, investing and entity structuring.

Jeff has been a real estate investor since 1993.

In 2011 Noteworthy Publications honored Jeff with the Jon Richards educator of the year award.

From 2010 to present Jeff has led the Distressed Property Coalition; a Washington DC lobbying effort in bringing

about several changes in government regulation of distressed property purchases and re­sales.

The new Standard National Short Sale Policy instituted by FHFA, effective Nov. 1st 2012 is due in part to the DPC and Jeff’s efforts. This means that Jeff and the DPC just changed the rules; for the better, on how investors and others buy and sell real estate.

He is co­founder of the internationally known real estate investing software powerhouse Realeflow LLC featured in 2011 INC 500 with an astonishing growth rate of 823% in one (1) year. Among his other clients are two (2) real estate investment related 2012 INC 500 companies.

He is the Author or Co­Author of 5 popular books on real estate investing.

Jeff, his wife Lorri and their five children

Sand in Your Gears

reside in Conneaut.

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61

62

Real Estate Investing With No Money Or Credit

By Laura Alamery 63

So, you want to be your own

direction that is chosen,

price and make a sizeable

boss and do not want to put

building solid connections

profit.

a lot of start­up capital into

with others in your

your venture. You have

community will grow your

Wholesaling requires

been researching which

business faster than any

dedication and the people

business options might be

other sales or marketing

skills to build a comprehensive

best for you and keep

campaigns that exist.

database of both sellers and

reading about real estate wholesaling and other strategies that allow you to

What is Wholesaling?

buyers. And is a common niche for new (and veteran) real estate investors. The wholesaler finds the contract

make a profit in real estate investing without putting any

Let’s start with the most

and either assigns the

money down or having

important players involved

contract to a buyer at a

credit checks performed.

in a real estate transaction.

higher price or has a double

The seller, the buyer, and

closing, meaning the

It is not too good to be true!

the person who facilitates

wholesaler technically buys

There are a number of

the sale. Most commonly,

the property but then

different directions that real

the facilitator is a real estate

immediately resells it the

estate can take, and the no

agent. They list the property

same day.

money, no credit path has

for the seller, or scout

many options.

available properties for the buyer, and they most

● Wholesaling

definitely need to be

● Co­wholesaling

licensed by the state the

● Subject To Sales

transaction is taking place.

● Seller Financing ● Transactional

Real estate wholesalers act similarly, to an extent. Like

Excelling in each of these

agents, wholesalers are

areas requires the proper

always on the lookout for

knowledge, as well as the

sellers. Unlike agents, most

people skills necessary to

wholesalers are looking for

grow your real estate

properties that are selling at

investing business. Regard­

a very serious discount, in

less of the real estate

order to resell it at a higher

64

Real Estate Investing With No Money Or Credit

Co­Wholesaling

as this are often large

Real Estate Investing With No Money Or Credit

commercial buildings that Connecting with other

significantly impact the

wholesalers can expand

community.

both your customer list and your bank account. If you

before the transaction is a

Subject To Sales

good idea to know where you stand going in.

have a buyer looking for a specific property, a fellow

Subject to real estate

wholesaler may have the

transactions are the best

Rarely does happen, as the

perfect place. Generally, the

option for those with no or

lenders are simply happy

wholesale fee is split

bad credit. This agreement

that the loan is getting paid.

between the two and both

is between the seller and

This is a great example of

can profit from the sale.

the wholesaler or investor.

why wholesalers are always

No down payments are

looking for distressed

Another advantage to co­

made or credit checks

properties. Homeowners

wholesaling is that it opens

performed, as the buyer

have many reasons for

your customer base to

ends up simply assuming

needing to relinquish

include more opportunities.

the mortgage.

responsibility of their property. Wholesalers make

Often times, wholesaling is where investors meet and

There are a few things to be

the transition easy, as they

connect to collaboratively

aware of before entering

already come with a list of

purchase a property through

into these types of deals. In

buyers, the seller does not

a real estate investment

the mortgage contract, the

have to go through the

trust (REIT). Working

lender has the right to call

hassle of listing and

together can work wonders!

the note due at any time, in

showing, and the sale

Investment properties such

full. Speaking with the bank

usually happens quickly.

65

Real Estate Investing With No Money Or Credit

Seller Financing Another great option that does not require money down or credit checks is when the seller will provide the financing. How this works is usually that the seller keeps the property in their name and the buyer simply pays the seller instead of the bank.

There is also usually an option for the buyer to make the purchase once they are in the position to make the down payment or get a mortgage of their own. Sellers like these kinds of sales because they have a steady stream of monthly income from the payments.

Transactional Funding Here is where those relationships that you have been building are going to come into play.

Bank loan officers are a necessity to wholesalers and their relationship should be as important as the buyers and sellers.

A great example of when transactional funding will come in handy are bank owned and short sale properties. These properties often sell at bargain prices and a substantial profit can be made. Unfortunately, these sellers do not allow assignment of the contract or double closings, and do require cash at the end of the deal.

66

Finding Your Place in the Real Estate Investing World Real estate can be overwhelming and finding the niche that works best for you is important to maintaining a successful and lucrative business. Once the journey begins, so many doors will open with possibilities of avenues to pursue.

for new real estate investors. Once a few sales have taken place very big part of real estate investing is relying on your intuition and listening to where you feel most comfortable will only help build your business, portfolio, and bottom line.

Enlisting the help of experienced investors, and finding a mentor who wants to help, can catapult your business into the next level.

There are so many things to learn when it comes to real estate, and while much of it is simply learning by experience, there are options to make it easier. The knowledge of those veteran investors and agents is invaluable and learning from their mistakes can save you many.

Start building your real estate investment portfolio with little to money down, with no credit checks, by following these noted strategies. And watch your business take off!

Real Estate Investing

it will be easier to determine which speciality is right for you. A

With No Money Or Credit

The options outlined here are some of the most common areas

Laura Alamery Laura Alamery is a local real estate investor of 30 years & consultant with extensive experience in several aspects of the real estate business ­ she has pioneered several strategies from personal experience that she now teaches nationwide, even to other mentors!

67

68

69

Segregating Assets and Liabilities

By Jay Butler 70

Islands and Belize) and

(which is advantageous,

'Protected Cell Companies'

albeit more expensive). All

(Republic of Seychelles) for

other jurisdictions leave the

insurance companies and

responsibility of maintaining

other industries servicing

proper books and records

large quantities of related

with the company

clientele.

ownership.

The method of shielding

Nevada added Series LLC

large institutions from mass

legislation in 2005 and, along

claims arising from

with a growing number of

catastrophic events was

states, allows a Series LLC

then brought to average

to enter into contracts, hold

Is a ‘Series’ Limited Liability

individuals engaged in

title to assets, grant security

Company akin to putting all

common business activities

interests and to sue or be

your eggs in one basket or

with varying degrees of risk

sued just like other types of

can a Series LLC truly

such as real estate

entities. Although no court

provide asset protection

investing, construction and

cases have reached any

through the segregation of

fund raising. However, many

State Supreme Court to

subsidiary assets and

questions have since arisen

establish a precedence for

liabilities?

on ‘how to use’ a Series LLC

the efficacy of a Series LLC,

with regards to banking,

there is more than a decade

documentation and taxation.

of use to their credit.

I Originally designed to assist

Nevada is currently working

investment companies in the mutual fund industry avoid a

A Series LLC consists of a

to pass legislation preventing

multitude of SEC filings,

‘master’ company and a

any (future) out­of­state

Delaware introduced special

series of ‘subsidiary’

court rulings to be used into

interest legislation in 1996 to

companies, which may

a Nevada court of law.

enable one company to act

conduct unrelated business

as an ‘umbrella’ for the

activities with differing

activities of all their

ownership interests. Of the

individual client funds. Such

thirteen states which

a strategy has also been

currently have legislation

successfully implemented

enacted for a Series LLC,

internationally with

only Illinois requires their

‘Segregated Portfolio

subsidiaries to be registered

Companies’ (British Virgin

with the Secretary of State

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Segregating Assets and Liabilities

While many states have not

tax election. In 2008, the

the subsidiary is considered

yet enacted any Series LLC

IRS issued Private Letter

an entity under local law.

legislation in their state

Ruling 200803004 which

laws, or do not yet

ruled that the Federal tax

In structuring Nevada

recognize the use of a

classification for a Series

"Series" LLC's for our clients,

Series LLC within their

LLC (whether a disregarded

we have found it beneficial to

state, it is possible to avoid

entity, partnership or taxable

have the 'Master' LLC filing

‘foreign filing’ (ie. registering

association) shall be

as a partnership (for tax

your entity in another state)

determined for each

purposes) utilizing a flow­

by combining a Series LLC

subsidiary independently.

through 1065 tax return and

with other structures like

And, proposed Treasury

a Nevada "C" Corporation to

Land Trusts, or on­the­

Regulation §301.7701­

act as the manager of the

ground ‘data processing

1(a)(1) states subsidiaries

said 'Series' LLC, with or

centers’, or third­party

shall likely be treated (for tax

without any ownership

management companies

purposes) as a separate

interest. However you

contracted to perform

entity regardless of whether

choose to structure your

certain state­specific

'Series' LLC, it is important to

activities. Meaning,

note multiple options exist to

"Nevada stays in Nevada"

take advantage of many

and your 'Series' LLC

retirement and tax­related

should not be foreign­filed

benefits.

in another jurisdiction.

The tax treatment of a Series LLC is also becoming clearer as their use continues to spread. A

Segregating Assets and Liabilities

A 'Series' LLC is a specialized type of Limited Liability Company, which requires attention to detail. If you are not organized, then

Series LLC can be formed

you should be sure to seek

with a single­member (not

the assistance of

recommended) or with

bookkeeper and tax advisor

multiple members and, if

capable of keeping your

not acting as a disregarded

books and records in order.

entity for tax purposes, may

There are two primary

choose to file either a 1065

benefits to a Series LLC and

(partnership), 1120 ("C"

one responsibility which

Corp) or 1120­S ("S" Corp)

remains unchanged:

72

Segregating Assets and Liabilities The first of two benefits is the ability to form and

for each subsidiary, including operating

renew only one company, as opposed to

agreements, minutes, meetings and resolutions.

multiple entities. This saves a tremendous

While some do not wish to hear this news, try and

amount of money in both formation costs and

think of it this way, "If you had 20 separate Limited

annual renewal filing fees.

Liability Companies, would you not have to maintain separate books and records for each

The second benefit is that a Series LLC only

company?" The answer is 'yes' you would.

requires one tax return to be filed by the master LLC. It is far less expensive to file one tax

If it looks like a duck, walks like a duck and

return, inclusive of financial statements for each

quacks like a duck, it’s not a goat. If the

subsidiary, than it is to file a multitude of (stand­

Subsidiary companies of your Series LLC are to

alone) tax returns for the each and every

be respected as such, then your business

subsidiary LLC.

formalities must be in order. Take these action steps into consideration when investigating the

The ‘responsibility which remains unchanged’ is

use of a Series LLC:

that you must keep separate books and records

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– Each subsidiary is a separate and distinct company from the master and keeps their own respective books and records.

– Separate EIN (Employer Identification Numbers) are obtained and maintained to segregate bank accounts of each subsidiary.

– All agreements, contracts, deeds and notes, etc are signed in the name of the respective subsidiary LLC.

– Each subsidiary name should include the name of the master in its title,

–

thus providing notice or disclosure to the subsidiary’s existence. i.e. “XYZ Subsidiary, a Series of (Name of Master) LLC” Each subsidiary is to be properly capitalized with no one subsidiary co­mingling funds or ownership interest in another.

We have a very simple philosophy in our company which states, "Documentation Beats Conversation".

If each subsidiary is to be treated and respected as a separate company with its own legal personality, then it must behave accordingly. The more you are able to document the distinct business activities of each subsidiary, one­from­the­other, the greater your opportunity will be for a court of law to uphold segregating the assets and liabilities of each subsidiary company within your 'Series' LLC. For more information on how to properly form and use a Series LLC, please contact our offices for your free private asset protection consultation.

Sincerely,

Jay Butler

Managing Director

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Segregating Assets and Liabilities

Jay Butler Jay Butler is the Managing Director of Asset Protection Services of America, the former Managing Director of Asset Protection Services International, Ltd and the former Vice­President of Sales and Marketing for Corporate Support Services of Nevada Inc. Mr. Butler holds a Bachelor's Degree of Fine Arts (BFA) from Boston University.

Jay has provided customized business entity structuring for clients in all 50 states along with some of the most respected names in the industry including the Jay Mitton organization "the father of asset protection" and Real Estate Investor Association seminars.

While working with Wealth Protection Concepts, LLC under the tutelage of the former Las Vegas and North Las Vegas city attorney Carl E. Lovell Jr. (now deceased from Leukemia), Mr. Butler was bestowed the title of "Asset Protection Planner" for his competency and experience. He also co­ authored the first edition of his book "Cover Your Assets: Legal Authorities on Asset Protection, Tax Strategies and Estate Planning" © 2006 with Dr. Lovell.

While residing in Switzerland, Mr. Butler was the Associate Director of “CO­Handelszentrum GmbH” providing Swiss company formation and administration services and executed a full­range of fiduciary responsibilities including sales, client support and international corporate compliance services (KYC, FATCA, AML, FATF and Swiss Code of Obligations).

Jay builds his relationships through consistent attention to detail and reliable support. He has traveled extensively throughout the United States (having visited 49 of the 50 states), explored 36 nations worldwide, and has lived in a total of 7 countries throughout North America, Central America, the Middle East, North Africa and Europe.

Asset Protection Services of America 701 South Carson Street Suite #200 Carson City , NV 897015239 Office (775) 4615255 Mobile (239) 3098214 Skype Jay_Butler Email info@AssetProtectionServices.com Website www.AssetProtectionServices.com 75

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Benefits of Diversified Portfolio Benefits in International Real Estate

By Matt Malouf 79

W

hen it comes to

capital flows. We understand the importance of global investment

investing in real

strategy and it’s time that you too understand what this option can

estate, people

offer to you.

tend to be vigilant

about their investments

Most people hesitate to invest in international real estate because

options. What they seem to

of geography. Real estate is generally a long­hold investment

ignore is how the profit and

strategy and it’s the long distance that generally makes people

growth ratio investing in real

uncomfortable while investing in international real estate. But

estate abroad can provide

there are certain benefits for global diversification on a real estate

them with great success.

portfolio. Let’s look at a few.

The world is a global village

Investment Diversity

now and so it makes sense that people have started

Being a secure and hard asset, real estate has always been a

investing in international real

preferred investment choice for people all over the world. With

estate. There’s a certain

many fast­growing international real estate markets, this

charm to this move but more

investment opportunity is too good to miss. Investors can enjoy

than charm, this smart move

low interest rates and avail a variety of lending options. And with a

can help strengthen your

professional team to back you up, these investment opportunities can be the perfect addition to your diversified portfolio.

With this new financial step, you can have another stream of income. That’s the best part about this investment. It can generate income and even appreciate in value over time. The exchange rate can help you make a hefty promise every time. If you are investing in

Benefits of Diversified Portfolio Benefits in International Real Estate

countries with a higher currency rate than the USA, your investment portfolio is surely going to enjoy the benefits. The change in interest rate also has a significant impact on making international real estate investments a lucrative financial move.

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Since each property has

By investing in international real estate, you can easily diversify

an intrinsic value, your

your portfolio and give it a global edge. Since the international

investment would never

housing market tends to operate differently, a decline in one

go to waste. This is just

market can cause a significant increase in the other one. With this

one of the properties that

contrasting nature of the international real estate market, you are

set international real

bound to gain great benefits.

estate apart from other investment options such

Ancestral Roots

as stocks.

Risk Management

When you are looking for some international real estate investment opportunities, why not try and connect to your roots?

For many of our clients, the first option for investment is mostly

So what makes investing

their ancestral country. Their way of paying tribute to their heritage

in international real estate

is by investing in their ancestral country. This way, they can always

such a glorious option?

have a place to go back to when they want to experience the life

The best part of this move

that their ancestors lived.

is the diversification of risk. When you put all your

For many people, this is a lucrative option because it gives their

eggs in one basket,

children a chance to know their heritage. People whose ancestors

there’s a higher risk of

immigrated to the USA often go for international real estate

losing it all at once. By

investments in their home country. This is a great reason for

spreading your investment

choosing the right international real estate. As long as the real

over several international

estate market in your home country isn’t in a steady decline and is

real estate properties, you

showing great potential, including it in your investment portfolio

can significantly reduce

would be a good call.

the risk. The real estate market is dynamic and always in transition. Even the slightest economic change can have a drastic effect on your investment choices. These effects can either be extremely beneficial for you or leave you at the brink of bankruptcy.

Benefits of Diversified Portfolio Benefits in International Real Estate 81

Recreational Value Investing in international real estate doesn’t just create new income streams but also provides you with the perfect vacation home. So when you are looking for opportunities to diversify your portfolio, make sure you go for an option that can serve well as a vacation spot. Even though the main reason behind this investment is purely financial, buying the right property can also add a recreational value to your investment.

If you love the great scenery of ice­capped mountains of a vacation spot, you can turn this passion into a great investment opportunity. There are some countries that allow foreigners to own property and you must be prepared to take full advantage of this prospect. Contact MyLifeWorldWide.com and let our professionals help you get a diversified portfolio for international real estate.

Cultural Diversity This is a great opportunity to experience other cultures. Become a local at the place and you’d be able to explore the region to your heart’s content. Your overseas property can provide you with new experiences, enabling you to explore some other parts of the world. If you have the desire to experience cultural diversity, your international real estate portfolio can help you with that.

Residency Eligibility Owning a property in a country can often make you eligible for residency and/or assist you in a naturalization application. With this change of status, many doors in the country also open up for you. You can get access to the country’s banking and financial services industry. You can use this opportunity to divide up your fortune and taking advantage of the profitable banking prospects.

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Investment Security Unfortunately, retirement funds in the USA are subject to some strict laws and many people have already bore the cost of these policies. Your retirement fund can come under the threat of lawsuits and creditors, hence leaving you vulnerable at the later stage of life. For availing the ultimate retirement fun with security, it’s imperative that you invest abroad.

Your diversified portfolio of international real estate can’t be subjected to the laws of USA and even the IRA can’t attack them in any way.

Your properties in the USA might be at risk of lawsuits but your international real estate is insulated from this risk.

This is one of the best reasons for you to consider investing in international real estate.

Your international real estate investment would never go to waste if you work with a professional. With their expertise in the industry and years of experience, MyLifeWorldWide.com can help you make some sound financial moves. With a diversified international real estate portfolio, you can yield great profits, without the usual risk that other investment options pose.

So make the best of this opportunity and make some sound investments overseas. Contact us at MyLifeWorldWide.com for more information and custom solutions tailored to your unique situation.

Matt Malouf, International Real Estate Consultant MyLifeWorldWide.com Clarity.fm/mattmalouf

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84

The Housing Choice Voucher Program

By Reggie Brooks 85

moderately priced home in the local market,

Program, aka “Section 8” is a

recipients can choose to rent a home above or

Housing and Urban

below that cost. They must make up the

Development Program that

difference between the subsidy and the home's

helps to insure that low income

rent. The subsidy does not cover the entire

families, the disables and the elderly have

rent; recipients must pay 30 percent of their

access to safe and sanitary housing. These

income toward their own rent.

private market rentals would ordinarily be out of their financial reach but with assistance, these families can have access to housing where

What Does Section 8 Mean to You as a Landlord?

they can live with dignity.

As a landlord, you may question whether or not

Here’s How It Works…

you should accept a tenant with a Section 8 voucher. The program requires that the landlord must provide safe and sanitary

applicant must apply to the program at a local

housing for the tenant and adhere to the terms

public housing agency (PHA) that is an

of the lease that both parties agree on. As a

extension of the federal Housing and Urban

landlord, these should be criteria you are

Development (HUD) agency. The PHA will

already meeting. Additionally, Section 8

determine eligibility based on the applicant's

requires that rentals pass a housing inspection

annual gross income and family size. Once the

to be eligible for the program. The landlord is

PHA has verified the applicant's information

expected to maintain the property throughout

with other families and approved the applicant

the duration of participation in the program.

for a voucher, the applicant becomes eligible

.

for a voucher. In most cases, the need for assistance is greater than the resources provided to HUD and the family is placed on a waiting list until funds become available.

The voucher operates as a rent subsidy.

Individuals and families who are approved for a Section 8 voucher may select a rental from the private market including an apartment, a townhome, or a single­family home. While the PHA uses the amount necessary to rent a

SECTION

In order to qualify for a Section 8 voucher, an

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The Housing Choice Voucher Program

T

he Housing Choice Voucher

The Housing Choice Voucher Program Participation in Section 8 has numerous benefits to a landlord:

providing free marketing to your target audience.

• Guaranteed income. Getting rent paid on time is one of the biggest hassles that a landlord faces, but in the Section 8

• Pre­screened tenants with verified

program, the rent subsidy is paid directly

income. The PHA verifies your tenant's income and employment to ensure they can

to you. Additionally, most voucher

pay their portion of the rent. Some PHAs will

recipients will pay their portion on time as

turn away applicants with criminal histories.

non­payment can risk their continuation in

Combined with your own tenant screening

the program.

process, you should be able to find excellent tenants for your rental.

• High demand for properties. Due to a

While there are some drawbacks for landlords, such as continuing with routine

shortage of properties and an overwhelming

inspections to ensure the property is being

number of applicants, demand for Section 8

maintained and some restrictions on how

housing is high. Your property will also be

much rent can be charged, the benefits for a

listed on the Section 8 website for your area,

landlord are significant.

Reggie Brooks Reggie Brooks, is an international speaker, author and educator, dedicated to inspiring others to achieve personal success through real estate investment. He is also the #1 Vacant, Abandoned & Distressed Property Specialist in North America.

Having risen above a life of poverty, he has achieved what many people consider to be impossible. He went from making $36,000 per year at the local telephone company, to making over $40,000 per month in his real estate business. Today, Reggie delivers his personal philosophies for success at major business venues and expositions throughout the United States.

Reggie attributes his success to faith, dedication to success, and to the invaluable coaches he has had along the way.

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