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How to 10x your cash buyers Holiday Webinar with an Explosive Offer!!

Learn how REIBLADE’s innovative real estate investor marketing tools can turn your data and doors into greater profit!

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Thursday July 2, 11am Pacific / 2pm Eastern

RSVP NOW: https://reiblade.mykajabi.com/rei-blade-webinar-page-070220?cid=ea307316-77fd-4e30-b25e-d85036ab5d76

Why REIBLADE.com?

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REIBLADE solves many headaches real estate investors face and provides a number of unique tools that can dramatically accelerate business growth.

Emily from Arizona is looking forward to doing more deals with the time she will save using REIBLADE.com

Attend the webinar and find out how you can save 70% on a lifetime license of REIBLADE.com

What we will talk about:

Sponsor Dashboard

Analyze and present your assets to investors in ways never available to real estate investors including instant performance snapshots, asset groupings, powerful

Investor Portal

Provide transparency and clear communication with your investors including document storage, push button quarterly reports, instant information

Raise Capital

CRM, tasks, instant prospectus, public and private marketplaces and pipeline marketing are just the beginning for attracting equity, new investors with the ability to sell your assets

Meet the team!

Seti Gershberg

Seti Gershberg
Real Estate Investor
Co President
Scottsdale REI, LLC
Inventor of REIBLADE

David Hirschfeld

David Hirschfeld
President – Tekyz
Developer

Jay Tenenbaum

Jay Tenenbaum
Real Estate Investor
Co President
Scottsdale REI, LLC
National Speaker

RSVP NOW: https://reiblade.mykajabi.com/rei-blade-webinar-page-070220?cid=ea307316-77fd-4e30-b25e-d85036ab5d76

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Realty411 Announces 3rd Virtual Investor Weekend Expo on July 25th and 26th

Santa Barbara, Calif., — Realty411, publisher of the nation’s most popular real estate investor magazines, recently wrapped up their second virtual expo and set a date for their third online REI event.

Realty411′s 3rd Virtual Investor Weekend Expo will take place in the comfort of your own home, on Saturday, July 25th and Sunday, July 26th, beginning at 9 am PST.

The complimentary online non-stop event will feature renowned real estate educators, including Ross Hamilton, CEO of Connected Investors; Rusty Tweed, Founder of TFS Properties and Mold Zero; Kaaren Hall, CEO of uDirect IRA Services; plus Hugh Zaretsky, founder of eFramily.com; additional power-house speakers will be announced shortly.

Learn from Ross Hamilton, CEO of Connected Investors!

Learn from Ross Hamilton, CEO of Connected Investors!

Learn from Ross Hamilton, CEO of Connected Investors!

Once again, Realty411′s 3rd Virtual Investor Weekend Expo will be hosted by Dave Grimm, CEO of End 2 End Results, and Linda Pliagas, founder of Realty411. Also joining the emcee line-up for the first time will be The Millionaire Maverick, Paul Finck, an international motivational speaker.

Over 1,000 investors from around the nation and seven countries registered for Realty411′s first two virtual expos, which took place in late March and this past weekend.

The two online weekend expos hosted 24 top-notch real estate insiders, all who happily spilled their time-tested secrets of success.

Where is the real estate marketing heading? Find out here!

Where is the real estate marketing heading? Find out here!

Where is the real estate marketing heading? Find out here!

The popular June 13th and 14th event featured nationally-recognized industry leaders, such as: Kathy Fettke, Co-CEO of Real Wealth Network; Anne Marie Rogers, Director of Marketing, Quest Trust Company; Marco Santerelli, Founder of Norada Real Estate; and Sunil Tulsiani, Founder of the popular Canadian-networking group, PrivateInvestorClub.com.

Investors who are interested in attending Realty411′s next Virtual Investor Weekend Expo on July 25th and 26th are encouraged to sign up on Realty411′s VIP List to receive registration information and updates.

To join Realty411′s VIP List and receive up-to-the-minute information, event invitations and news, CLICK HERE or sign up with the link below:

https://realty411expo.us11.list-manage.com/subscribe/post?u=ef8f4928b5ca88b928d3c59e8&id=36e1cad889

Investors from around the nation and world are invited to join the Realty411 Team as they unite the industry experts for a memorable weekend filled with non-stop education, motivation and excitement.

Realty411.com is based in beautiful Santa Barbara County, California. The area, known as “The American Riviera”, is also home to many celebrities and prominent business leaders.

Realty411.com is based in beautiful Santa Barbara County, California. The area, known as “The American Riviera”, is also home to many celebrities and prominent business leaders.

Realty411.com is based in beautiful Santa Barbara County, California. The area, known as “The American Riviera”, is also home to many celebrities and prominent business leaders.

 

 

 

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Could the Corona Virus provide the next Boon for Private Mortgage Lending?

By Edward Brown

The Corona Virus had all but shut down conventional lending in late March 2020 and most of April 2020. Although it now appears that many banks have loosened up, they are far behind in applications due to the shelter in place restrictions and lack of certainty in the market.

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This situation may provide a boon to the private lending industry as it has done at times over the past 30 years; however, a cautionary tale might ensue should the perceived lockdown last for a few more months. The main reason is that a prolonged economic decline can produce long lasting effects that may take years to recover, especially in certain markets such as restaurants, retail, and any place where people gather. Different economic interruptions have occurred over the past 30 years that, for the private lender, with foresight, fared better than just before the downturn in the market.

In the mid 1980s to the mid 1990s, the Savings and Loan crisis shuttered many real estate lending institutions. Almost one out of three Savings and Loans failed from 1986 to 1995. It was the most significant collapse since the Great Depression. According to author, Kimberly Amadeo, “In the 1970s, stagflation combined low economic growth with high inflation. The Federal Reserve raised interest rates to end double-digit inflation. That caused a recession in 1980.

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Stagflation and slow growth devastated S&Ls. Their enabling legislation set caps on the interest rates for deposits and loans. Depositors found higher returns in other banks. At the same time, slow growth and the recession reduced the number of families applying for mortgages. The S&Ls were stuck with a dwindling portfolio of low-interest mortgages as their only income source.

The situation worsened in the 1980s. Money market accounts became popular. They offered higher interest rates on savings without the insurance. When depositors switched, it depleted the banks’ source of funds. S&L banks asked Congress to remove the low-interest rate restrictions. The Carter administration allowed S&Ls to raise interest rates on savings deposits. It also increased the insurance level from $40,000 to $100,000 per depositor.

By 1982, S&Ls were losing $4 billion a year. It was a significant reversal of the industry’s profit of $781 million in 1980.

Between 1982 and 1985, S&L assets increased by 56%. Legislators in California, Texas, and Florida passed laws allowing their S&Ls to invest in speculative real estate.

Amongst scandalous activity such as putting pressure on the Federal Home Loan Banking Board to overlook suspicious activity, the crisis pushed states like Texas into a recession. When bad land investments were auctioned off, real estate prices collapsed.”

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In addition to the simple laws of supply and demand where the supply of money available for real estate purchases decreased due to the number of S&Ls closing, other conventional lending institutions became skittish and backed off; even for the more conservative loans.

Enter the private real estate lender. For those who could think outside the box and use some creative thinking, loans were made that, in one person’s opinion “was like shooting fish in a barrel.”

An example of this was a loan I was privy to that, to this day, I cannot believe a conventional lender did not make; the property was in the financial district of San Francisco and was considered a prime office building. The building was 80% occupied and had tremendous positive cash flow from long term, stable tenants. The buyer was getting a severe discount because the son who was given authority by his father accidentally accepted an almost insulting low-ball offer. Although the father tried to correct the mistake, the buyer refused to change the contract and threatened to sue for specific performance.

By all accounts, the buyer needed a loan of 20% LTV. Unfortunately [or fortunately, depending on which side of the table you are], the banks were acting like a deer in headlights and would not commit to a loan; thus, the buyer had to turn to hard money [as it was called in those days]. The terms were 14% and 10 points for a three year loan with a one year minimum guarantee of interest. Although the buyer was not happy with the terms, he knew he was going to make a fortune on the building and be able to refinance once the economy got back to somewhat normal.

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Then, in the late 1990s, we experienced the Dot Com bubble and burst. During the 1990s, more people were getting use to the World Wide Web. At the same time, a decline in interest rates increased the availability of capital. Add to that the Taxpayer Relief Act of 1997, which lowered capital gains tax. These combinations made more people willing to make more speculative investments. Many investors wanted to ride the gravy train to invest at any valuation. Venture capital was easy to raise and fueled many companies that never had made a profit and probably never would.

In early 2000, the Fed raised interest rates, leading to stock market volatility. At the same time, Japan entered a recession. In April 2000, a judge ruled that Microsoft was guilty of monopolization and violation of the Sherman Antitrust Act. This led to a 15% decline in the shares of Microsoft. On the same day of the judge’s ruling, Bloomberg News published a widely read article that stated, “It’s time, at last, to pay attention to the numbers.” Within two weeks of that article, the NASDAQ had dropped 25%. Many investors sold stocks just before April 15th in order to pay for gains they had realized from sales in 1999.

This compounded the decline of the NASDAQ. In addition, investor confidence was further eroded by several accounting scandals and the resulting bankruptcies that ensued. This spiral downward turned Dot Dom to Dot Bomb as it was known.

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Although the Dot Bomb era was not real estate related, confidence in the economy was shaken. Soon thereafter, the September 11th attacks occurred and many borrowers were once again faced with conventional lenders who pulled back on their lending, not matter the asset or the strength of the borrower.

Again, enter the private real estate lender. During this period, real estate had not severely declined; maybe because the decline was more specific to the Internet rather than a global real estate credit crunch. People still had jobs and made their mortgage payments for the most part. The supply of housing had not kept up with demand, so prices stayed relatively stable. However, whenever there is perceived uncertainty, banks typically pull back and usually to an extreme wherein even the most conservative of loans is not made. The private real estate lender was given the ability to lend very conservatively at the same time as commanding a higher rate of interest than was normally attained in a more stable economy.

The next time the banks curtailed lending occurred during the Great Recession in 2008. This time, real estate was specifically cited as a major contributor due to the credit bubble and subsequent mortgage meltdown. Real estate prices fell precipitously, and although real estate declined in value, there were ample opportunities for private real estate lenders.

Many private lenders were curtailing their guidelines regarding LTVs, but they were making loans based on the then new, lower values and making a good living. For example, Mark Hanf, president of Pacific Private Money, started his business in 2008. Normally, one would have thought starting a lending business in 2008 was the wrong time, but Pacific Private Money flourished, as they made loans to borrowers in need at conservative, newer, LTVs, and no client lost money during the continued decline through 2012 due to conservative underwriting.

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Up next, the Corona Virus; although the pandemic has substantially hurt the economy regarding sales/profits, the underlying economic picture was strong prior to the virus, and there is compelling reason to think that it can be strong again after restrictions are lifted, as the various restrictions were created by governments rather than economic forces and can be undone when governments decide to disseminate them; especially if a lockdown is only for a few months rather than years. So far, real estate has not shown signs of collapsing. Sellers are unwilling to unload their properties at depressed prices.

Buyers still exist. Transactions are still being completed even if they are hampered by social distancing and more people working remotely. However, the banks are doing what they always seem to do during unsettling times; they pull back. They have less manpower via closed offices and less employees able to accomplish what is takes to make loans. This, again, gives the private lender the ability to provide the oft needed financing for borrowers. Interest rates have gone up for these borrowers even when the Fed has reduced interest rates. Less capital in the markets to lend means the demand for capital will raise the price for that capital. As long as the conventional lenders have basically stepped aside from real estate lending, the private lender should have the same opportunities that existed during the S&L Crises, the Dot Bomb Crisis, and the Great Recession.

Of course, nobody knows how long the virus will be around and how long governments will intervene rather than let the virus run its course on its own. A long, protracted shutdown would severely affect every economic situation, but it always seems that the best time to invest/lend on real estate is during the darkest hour. The old adage of buy low, sell high seems to work better than buy high and hope it goes higher.

Even if we do not know how long an economic decline lasts, conservative underwriting can help weather tumultuous times.

As many investors claim, the time you make money is when you buy, not when you sell.


Edward Brown

Edward Brown currently hosts two radio shows, The Best of Investing and Sports Econ 101. He is also in the Investor Relations department for Pacific Private Money, a private real estate lending company. Edward has published many articles in various financial magazines as well as been an expert on CNN, in addition to appearing as an expert witness and consultant in cases involving investments and analysis of financial statements and tax returns.

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Webinar: COVID-19 Expert Housing Forecast – RSVP Now.

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LIVE ONLINE SUMMIT BY TIM HERRIAGE

Hello Savvy Investors;

I’m beginning to get really excited about the live webinar we’ll be having with some of the smartest people I know in the real estate industry.

Be sure to set aside time on Wednesday night at 5:00 as you’ll want to be dialed in to hear this very special event live!

First, I’ll answer a couple questions I have already received:

  • Will the event be recorded?

Yes. Those that purchase the live event will have twelve-month
access to the recording.

  • Are there limited tickets?

Yes! The webinar platform I use (Zoom) only accommodates
500 attendees at a time.

  • Can I ask questions? YES!

The live attendees will have ample time to ask questions of all
our speakers and guests.

  • What is the Agenda?

That’s a great question. Be sure to read our agenda below:

5:00 PM – 5:30 PM: Introduction of speakers
5:30 PM – 6:15 PM: Keynote Presentation: “The Economic Outlook for the Residential Real Estate Market” Mark Dotzour
6:15 PM – 6:30 PM: Q&A with Mark Dotzour
6:30 PM – 7:30 PM: Structured Panel discussing the presentation with all of the speakers
7:30 PM – 8:00 PM: Open Q&A — Mark is an economist from the Texas A&M Real Estate Center and is one of the most accurate figures in this industry in my opinion.

I’ve heard him speak at several events, and decided to get him to help us navigate the increasingly confusing economy. I’ve already reviewed his presentation, and let me tell you, it’s going to be great!

Don’t miss this important industry webinar, learn insight not available anywhere else.

RSVP NOW – CLICK HERE

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Visit REALTY411 at: http://realty411mag.com/?xg_source=msg_mes_network

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Rentals 2 Retirement: Bulletproofing your retirement with real estate

SPECIAL SPONSORED POST


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Webinar on Wednesday, 4/29 at 6pm PST
Rentals 2 Retirement
Bulletproofing Your Retirement with Real Estate

Join us for this informative webinar where we will show you how to build a safe, secure and predictable stream of income/retirement through conservative real estate investing.

As the CoronaVirus works its way through our communities there are two things you can be sure of: first, we will survive this Pandemic and come back stronger than ever (that’s what we Americans do) and secondly, as we return to the “new normal”, preparing for retirement and the future will be more important than ever.

Whether you are looking to replace your current income and build equity, diversify your stock portfolio by investing in real estate or create a stream of income to supplement your retirement, this webinar will show you how to get there!

Since 2009 Invest 1 Properties has been one of the nation’s leading turn-key investment property providers. Focusing on the dynamic Kansas City market with over 900 properties sold, we have the systems in place to assure your success.

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Our process is simple:
-We find the property for you
-We fully renovate the property
-We partner with local property management to place a qualified tenant and manage the property
-You just COLLECT THE CHECK

This is truly “hands-off” turn-key investing. We even include a rent guarantee and renovation warranty on every property we sell!

So join us to learn more about this incredible real estate investing opportunity and why we consider the Kansas City market a true hidden gem that has produced outstanding results for our clients over the last 11+ years.

Here are just a few of the reasons why:
-6.9% appreciation in 2019
-3.1% unemployment (Jan 2020), well below the national average
-Low cost of living and population growth is increasing year over year
-10%+ average cap rates
-In house financing available with no tax returns or W2’s, no bank qualifying

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U.S. Department of Justice Files Sexual Harassment Lawsuit Against Landlord

By Stephanie Mojica

The U.S. Department of Justice recently filed a lawsuit against an Iowa landlord alleging that he sexually harassed and committed acts of retaliation against a female tenant.

The defendants in the lawsuit are Juan Goitia and 908 Bridge Cooperative in Davenport, Iowa, according to a press release from the Department of Justice. The reported incidents occurred between March and August 2018 and are blatant violations of the Fair Housing Act, according to the Department of Justice.

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Goitia, an owner and manager of residential properties, allegedly touched a female tenant’s body on multiple occasions without her consent and made repeated and unwanted sexual remarks, according to the Department of Justice. When the woman filed a fair housing complaint with the Davenport Commission on Civil Rights (DCRC) and the U.S. Department of Housing and Urban Development (HUD), he engaged in acts of retaliation against her, according to the Department of Justice. The press release did not elaborate upon what those alleged acts of retaliation were.

“No woman should have to endure sexual harassment to keep her home,” Assistant Attorney General Eric Dreiband of the Civil Rights Division said in the press release. “The Fair Housing Act protects tenants from sexual harassment and retaliation by their landlords, and the Justice Department will vigorously pursue those who engage in such reprehensible and illegal conduct.”

After the DCRC and HUD investigated the woman’s fair housing complaint, they forwarded it to the Department of Justice for further action. The lawsuit filed on June 29th calls for the woman to be compensated financially. Also, the Department of Justice asked for a court order to be issued to prevent further discrimination against the woman.

“Women have a hard enough time finding a decent affordable place to live without having to be subjected to unwanted sexual advances,” Assistant Secretary Anna Maria Farias of HUD’s Fair Housing and Equal Opportunity Office said in the press release. “HUD applauds the action the Justice Department is taking in this matter and remains committed to working together to protect the housing rights of women when those rights are violated.”

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Vacation Rental Investment Opportunities

By Rick Tobin

In 2019, the travel and tourism sector represented 10.4% of the global GDP (Gross Domestic Product), including vacation rental properties. Over the past 12 years back when the best known vacation rental company named Airbnb was formed in San Francisco, each consecutive year for vacation rentals had record growth. However, the current 2020 year has experienced some significant economic challenges related to the global pandemic designation that slowed down travel tremendously.

airbnb-3399753_1280Airbnb is the best known vacation rental company in the world because it’s the largest. However, there are many other popular vacation space rental brands under the names of HomeAway, VRBO, Booking Holdings, Trivago, Booking.com, Homestay, and TripAdvisor.

Vacation rental ownership can become either a part-time or full-time career for property owners if they are consistent with their marketing efforts, treat their guests fairly, and have affordable monthly mortgage payments and maintenance expenses. With today’s record low mortgage rates, many property owners may be able to refinance and reduce their mortgage rate by 2% or 3% while increasing their net cash flow by $500 or $600 per month, depending upon their loan amount.

Let’s take a look below at some of the latest vacation rental data trends:

Vacation Rental Properties, Income, & User Numbers

  • Worldwide, an estimated $57.669 billion (USD) was generated in 2019.
  • The projected number of vacation rental users was over 297 million.
  • According to the National Association of Realtors (NAR), 30% of vacation rental or second-home property homeowners also leased them as short-term rentals in 2018.
  • The NAR reported that 32% of investment homeowners were likely to lease them as short-term rentals.
  • Of the nine million second homes in the US, approximately 44% were professionally managed and upwards of 25% to 35% were rented out, per Hostfully.
  • There are more than 23,000 vacation rental companies across the nation.
  • As per VRM Intel, 45% of investment property buyers purchased their property with the intent to generate some rental income instead of just “fixing and flipping” or holding long-term for price appreciation.
  • It’s projected by Statista that the number of vacation rental users may surpass 57 million by 2023.
  • The average revenue per user (ARPU) reached $438.49, according to Statista.
  • Vacation rental income comprises about 24% of the average owner’s total overall annual income, per VRMA.
  • VRBO estimates that 29% of vacation properties are owned by more than one person.
  • Approximately 63% of investors and 52% of vacation property buyers purchased a detached single-family home with a median size of 1,500 square feet, according to VRM Intel.

Airbnb Statistics

  • businessman-2682712_1280In the US, there are more than 660,000 host properties.
  • Since the formation of Airbnb in 2008, there have been over 500 million Airbnb stays.
  • There are more than seven million listings in over 220 countries and regions.
  • There are 150 million users worldwide.
  • There were over 100,000 host cities worldwide as of January 2020.
  • Each night, there are over 2 million people staying at Airbnb rentals worldwide.
  • On average, six guests check into an Airbnb every single second.

Top 10 Profitable Airbnb Regions

Surprisingly, many of the most profitable Airbnb areas were located outside of a major tourist hub, crowded metropolitan region like in New York City, or in scenic coastal regions, according to an analysis by the investment property exchange company IPX 1031. This is partly because the host’s property maintenance and mortgage costs are generally more reasonable than in pricier metropolitan regions.

In 2019, the Top 10 cities for highest profit margins for property hosts included:

#1 – Moreno Valley, California: $33,720 annual profit
#2 – Virginia Beach, Virginia: $32,208 annual profit
#3 – Pasadena, Texas: $29,988 annual profit
#4 – Garden Grove, California: $29,772 annual profit
#5 – Fremont, California: $26,700 annual profit
#6 – Grand Prairie, Texas: $24,432 annual profit
#7 – Columbus, Georgia: $23,820 annual profit
#8 – Oxnard, California: $23,256 annual profit
#9 – Orlando, Florida: $22,020 annual profit
#10 – Shreveport, Louisiana: $19,992 annual profit

Top Airbnb Destinations for Summer

beach-1838501_1280In the summer of 2019, the top Airbnb destinations in the entire nation for the peak travel season were ranked as follows:

#1 – Los Angeles
#2 – San Diego
#3 – Phoenix
#4 – San Francisco
#5 – New York City

In San Diego, Airbnb reported that there were 345,000 guests that generated upwards of $79 million in revenue for the property hosts. For the smaller neighborhood regions in San Diego County, the most popular areas for Airbnb travelers included:

#1 – Pacific Beach
#2 – Mission Beach
#3 – East Village
#4 – North Park
#5 – Ocean Beach

The Global Pandemic’s Effect on Tourism and Investments

In February and March 2020, the Dow Jones stock index experienced eight of the 10 worst all-time trading days in history due to investor fears about the coronavirus pandemic. Between February 12th when the Dow peaked at 29,551.42 on February 12th and March 23rd when the Dow plummeted to a low of 18,213.65, the Dow lost 38% of its overall percentage value in just over five weeks. However, stock prices have been moving much higher through the end of June as the Dow Jones had the best quarter since 1987 and the S&P 500 index had the most positive quarter in 22 years.

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Unfortunately, the travel and tourism industry has been hit hard during the first half of 2020 due to so many hotel, motel, theme park, and transportation restrictions or complete shutdowns. For many vacation rental owners, they have seen their income fall to lower levels than in previous years. If so, the loss of rental income has inspired some vacation property owners to think about either selling or refinancing their property to generate much needed cash or to hopefully improve their monthly net cash flow.

Surprisingly, real estate continued to have much more positive news than perhaps any other investment sector during the 1st half of 2020. Specifically, the fact that 30-year mortgage rates reached all-time record lows in the month of June was probably the primary reason why as some rates hovered somewhere in the mid-2% rate range. By comparison, the 30-year fixed mortgage rate hit a whopping 18.63% in October 1981.

profits-1953616_1280Other positive first half of 2020 trends for real estate and mortgages included:

  • Mortgage application numbers reached 11 year highs.
  • Home purchase applications also rose to 11 year highs while home inventory remains low.
  • Suburban home market regions are expected to hit record boom sales highs because so many people want out of crowded metropolitan regions while realizing that they can work from home.
  • US home prices rose for the 9th consecutive month in April, per Case-Shiller.
  • Prices of the most affordable third of US homes increased 5.5% during the 2nd quarter, per Redfin.

In the second half of 2020 and beyond, more people will likely be very eager to start traveling again after being restricted from travel for much of 2020. As a result, the revenue streams for vacation rental hosts may continue back towards historic highs if the annual positive data trends continue like they have over the past 12 years.


 

Rick-Tobin-Professional-Pic-sharperRick Tobin

Rick Tobin has a diversified background in both the real estate and securities fields for the past 30+ years. He has held seven (7) different real estate and securities brokerage licenses to date, and is a graduate of the University of Southern California. Rick has an extensive background in the financing of residential and commercial properties around the U.S with debt, equity, and mezzanine money. His funding sources have included banks, life insurance companies, REITs (Real Estate Investment Trusts), equity funds, and foreign money sources. You can visit Rick Tobin at RealLoans.com for more details.

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We Snagged The Nation’s TOP Lease Option Educator

Dear Serious Real Estate Investor;

As the market changes from a SELLERS’ market to a BUYERS’ market, there are a few strategies that are going to CRUSH it.

The easiest and fastest one to implement?

LEASE OPTIONS.

This is where John Jackson comes in.

In case you are not familiar with who John Jackson is, John is considered the nation’s TOP educator when it comes to the subject of Lease Options.

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So why am I introducing you to John?

Because the market is CHANGING and it is quickly becoming a BUYER’S market, and what is the BEST and most SIMPLE strategy in a buyer’s market?

LEASE OPTIONS.

You see, the post pandemic market is about to make a dramatic shift over the next several months and possibly years.

Will it be as bad as 2008?

I don’t know for certain. Nobody does.

But as things unfold there will be a LOT of uncertainty and sellers needing help. Because of this I wanted to introduce you to John who is a good friend of mine and is THE go-to guy in uncertain or down markets.

You’ve probably heard me mention John before as we’ve known each other a number of years.

John is often called the “King of Lease Options” and with good reason. He has specialized in lease options since 2003, and has even taught a number of the nation’s top educators.

Let’s just say this. He is THE guy that even the top educators call when they have a question or often times send their students to.

I guess you could almost call him the “Yoda of Lease Options”!

You see, the real estate world is just STARTING to see challenges and in the coming months it will be progressively harder and harder for sellers to sell, and lease options are the BEST strategy in a market like this.

Lease options THRIVE in a down market and the market we are going to see could be similar to 2008, and there is no greater educator on lease options than John.

Sellers will be more and more desperate for a Plan B and lease options are the PERFECT Plan B, BUT, you have to know how to structure them properly for a Win-Win-Win transaction.

Now, because John Jackson is extremely sought after right now given the market, and this is such TIME SENSITIVE training, you will NOT want to miss this virtual event.

Let me be VERY clear on a few things so that you understand EXACTLY how important this training is:

  • John has offered to do a LIVE virtual training.
    This is LIVE, not pre-recorded.
  • Because of this, John will only be doing ONE training,
    this Thursday July 2nd at 3 PM CENTRAL
  • He will be taking questions on the call.
  • He is THE Texas lease options expert as well,
    so if you are from Texas, he is your guy.
  • The platform only holds 100 REGISTRANTS! PERIOD!
  • Using the lease option strategies he will be teaching, you can
    easily make $10,000 on houses with no equity WHILE helping sellers.
  • Nobody else offers this training but John Jackson
  • The platform only holds 100 REGISTRANTS. Period.

I will be e-mailing you a number of e-mails with the opportunity to register over the next few days, but let’s be honest here.

John is one of the most sought after educators in real estate right now, and what he will be sharing on this training is VITAL to help sellers and buyers in the coming post-pandemic market.

So, if you wait to register, you risk NOT getting a spot at the table. And in case you are wondering, this e-mail just went out to over 72,000 people. Yes, that’s right, 72,000 people, but only 100 will even have a chance.

Are you going to be one of them?

When: Thursday July 2nd, 3:00 PM CENTRAL.

REGISTER NOW

To your success,
Linda Pliagas
Realty411 & REI Wealth Magazines

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Sales Process – Best Practices

By Dan Harkey

Do you ever think that for some reason you are not getting the results you want in your sales career? Do you have feelings that you try, but it is just not working? Maybe you need a minor tune-up, or perhaps a major overhaul.

Let us review the sales process:

Some people think that sales are concluded by what is verbalized in some learned word sequence, and how those words are used to convince a prospect to purchase products, goods, or services. Some may even think the correct method is for the salesperson to use slick language, ask questions that require a certain type of answer, handle objections, and a sequential closing interaction with the potential buyer. Granted, knowing your product, a good prospecting system, and training about the sales sequence is important. No doubt!

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I subscribe to a bit of a different philosophy. “You locate a buyer, rather than create a buyer.” If you have a large enough group of prospects and keep yourself in front of their conscientious thoughts, they will most likely think of you if they need your services. Also, you should constantly work on developing and nurturing a like-and-trust relationship.

The first requirement is to develop a thorough understanding of your products, goods, or services with which you are involved. Thorough explanation of the technical aspects and benefits is a must. Handling questions about the function, usability, quality, durability, and pricing is important. What are the benefits of owning the product or purchasing the service, or investment?

Success in the sales profession is a learned proposition. What I mean by that is I do not believe that there are natural born, predestined successful salespeople. Some may start earlier than others, even in childhood, by gaining the personal confidence and developing characteristics that are required to be a successful salesperson.

80/20 Rule:

eighty-706881_1280The 80/20 concept applies to almost all sales endeavors. 20% of the salespeople account for 80% of the total sales volume in industries. Correspondingly, 20% of the salespeople make 80% of the available income. The remaining 80% of the salespeople receive a meager portion of the remaining 20% of available income. The 80/20 rule also applies to the quality of your “active” prospects. You will create 80% of your new business transactions out of 20% of your “active” leads. The salesperson’s job is to focus on the 20% and to convert member(s) of the remaining 80% into the upper 20% referred to as “active.”

Marketing Strategies:

There are various marketing strategies used in solicitation including face-to-face networking in groups, interactive relationships in industry-related groups, direct mail, email, and direct calling. Direct calling may either be cold calling, repeat calling to maintain contact, or to follow active leads. All are within the scope of solicitation and are for starting and nurturing an ongoing relationships. What do you have to offer that might have significant benefits to the prospective purchaser? All methods consist of a strategy to convert prospects into an active relationship with you, including establishing business relationships and friendships. “Active” consists of a group that has communicated with you and expressed an interest in your product, goods, or services. Of course, “actives” can become friends and friends do business with friends! Business success, as well as life in general, functions much better with many friendships. This includes happiness, mental health, self-actualization, and monetary gain.

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Developing a large network of leads and personal relationships takes a lot of focused time and effort. Merely locating and purchasing a list does little. A list should be created and maintained constantly for a large subset group that may be interested in what you have to offer. The list will need to be appended, which means it is sent out to an email marketing vendor who can verify whether the address and email address are still correct. The list will need to be imported into a customer relations software system to begin efficient daily management of the data. The list needs to be worked daily to convert people from “cold” or “warm”, into “active.” What I mean by daily is not to call the same people but to work your list by calling each person periodically such as every 60 or 90 days. Excessively frequent calls could be considered pestering.

Information contained in the list will need to be constantly updated and expanded because people move jobs, companies go out of business, show disinterest or disrespect, habitually fail to return phone calls or email requests, retire, change names, change email addresses, change business locations, a change in life circumstances, etc. The “active” prospects in your network are the only ones that you may reliably count on in determining the size of your network or lead base. Also, even with a sizeable “active” lead base, you will lose 20% to 30% of them per year for all the reasons stated.

After much time of consistent follow up without real response or success, such as 24 months, you may elect to drop the prospects from your “active” list and cease active follow up. Dropped leads will be replaced with “warm” leads that become “active”, and new relationships. The other option is to only call or email them occasionally, such as twice a year. The fundamental aspect of the process is that it is a sequential daily action system.

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Here is a suggested action that you should take for someone who routinely or habitually does not respond to your request to communicate; send an email that states “Fred, I have tried to contact you a few times, without success. Would you prefer that I do not bother you?” If Fred wants to continue the relationship, he will respond. Fred may respond politely and say “no,” or just not respond at all. If Fred does not respond, then you may demote him back to “cold” and keep him in your database email marketing system for future interest and referrals. “Cold” leads do not get active personal follow up. If Fred is disrespectful or belligerent, just delete his record entirely. A poor strategy is to follow up with the same group of prospects, even when they show non-responsiveness or disinterest.

As the process becomes well lubricated through practice and experience, you can expect increasing momentum until you have so much business that you are forced to slow down marketing and personal contact follow-up in order to assimilate the additional new business, and/or new transactions.

Action Habits:

What size is your “universe of active possibilities.” Are there 10’s, 100’s, 1,000’s, or 10,000’s of prospects that you may be able to directly or indirectly follow up or market to? You have a current network size or number of “actives” and “prospects.”. Each person that you have in your follow-up system has a separate size of their own network. If you add the size of your network to the size of all the networks of each party that you market, you can establish a total, or “universe” of contacts. The question becomes, do you and each person that you follow up have a large enough network and a consistent daily action habit to develop a successful and sustainable career?

smartphone-1445489_1280Here are three different examples of persons that you may solicit in your “active” lead base. The distinction is whether both you and the person that you are following up with have their own separate and consistent daily action habit?

1) You have 10 “active” leads in your universe. Another person that you follow up with consistently has a total of 10 “active” leads in their network. If you communicated with your 10 each month or each quarter, and they in turn communicated with their 10 leads then the total universe of “active” possibilities would be 100.

2) You have medium-size networks such as 200 to 400 but fail to engage in a consistent daily action habit. Failure to engage may become your barrier. It will be necessary for you to change your action pattern. Calling, emailing and/or communicating consistently with at least 20 active prospects daily is a good start. 20 is not a magic number, but if you call and they enjoy talking to you, that may be all you can handle. Otherwise, you may be calling 20 to 30 “actives” per day including completed and non-answered calls and follow up with a polite “thank you” email.

3) You have 400 or more “active” leads in your network that you follow up each month or each quarter with a good action habit. The person you follow up also has 400 or more potential leads that they follow up consistently with a good action habit. 400 X 400= a total of 160,000 universes of possibilities.

The purpose of these examples is to serve as a reminder that if you want to be successful, then associate and follow up with other correspondingly successful people who also have large networks. Imagine having 1,000 different people who are receptive to taking a call from you, showing respect and enjoying the conversation, who also have a large network of their own. This, of course, is an example.

There will be a natural point that you will not be able to keep up with the pace, because you will have way too much business. You may need to hire an assistant to leverage your time and effectiveness. This assistant may be an employee or an independent contractor. The minute that you have spare time from handling all your new business, you will restart the process all over. The real magic will begin to occur when business acquaintances become friends. I have said this repeatedly, “friends do business with friends.”

Calling and emailing are not the only mediums of communication, but they are highly effective.

digitization-4813408_1280Remember that a prospect list can disintegrate over-night. In 2006 my company was primarily using direct mail, and we sent out about 1,000,000 letter form solicitations each month. Then by September 2007, the market crashed, and the lead base quality crashed with it. Hundreds of thousands of real estate agents, loan agents, investors, and builders/developers left the industry.

Over time when the dust and smoke cleared it was necessary to reconstruct a new list and start all over. Prepare for this event! If a crash in the quality of your lead base occurs consolidate down to your “actives” after verifying that they are still there. The entire process is a system that I refer to as a best practices action system.

Remember the concept “you locate a buyer; you do not create a buyer.”


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Dan Harkey
Business and Private Money Finance Consultant
Cell 949 533 8315
dan@danharkey.com

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Premiums: How Much and For How Long

By Gabby Darroch

Let’s talk about premiums, because, let’s face it, no one likes to pay them. But what if you began to look at them like deposits instead of payments? With The Money Multiplier Method, that’s really what they are.

How much does my premium (or deposit) have to be?

question-3838906_1280You are incomplete control of what you want your deposit to be. Now, in order for your policy to do what we want it to, which is to make you the bank and generate wealth over time, we do have suggestions on what it should be. That looks something like this:

(Your Age) x 10 = (Minimum Monthly Deposit Amount)

For example, Sally is 35 years old. So her minimum monthly deposit would be $350 (35 x 10). Again, we have it structured this way so you benefit the most from your policy.

Of course, you aren’t limited to monthly deposits. How often you want to pay is up to you as well. In fact, you can change your deposit frequency at any time. Most people opt for the monthly deposits, which is why we use that in this example. And who has ever really made “too many” deposits?

How long do I have to make deposits for?

In a typical policy, we will settle on what your premium deposit should be for the first five years. This premium deposit will include a paid up additions rider that accelerates the growth of the policy. In year six, you will then pay roughly forty percent less in premiums as the rider will have dropped off and no longer be necessary. For example, if you are paying a premium of $10,000 for five years, this includes a $6,000 paid up additions rider so in year six, you’ll only make a deposit of $4,000 for the remaining life of your policy.

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Of course, that paid up additions rider can still be of value. That $6,000 (or whatever your paid up additions amount is) can then be used, along with any other funds you have, to start another policy. Consider it similar to a “branch office” because you are the bank now. And don’t banks have multiple locations? Why shouldn’t you?

As we always say, there are specific situations with all of our clients and our Money Multiplier Mentors are trained to help you make the best decisions in growing your family’s wealth. When you meet with one of them, ask them about your options and what will work best for your lifestyle.

Can I make a lower or higher deposit if I want to?

Absolutely. What you pay towards your premium is entirely up to you. We have never and will never tell you how much money to put towards your premium. We do like to note that the higher the premium, the better the return in your cash account.

money-3219298_1280And if you have the means to deposit an additional lump sum of money (called “overfunding”) with your premium deposit this would accelerate the growth of your policy even more.

Keep in mind, if you take out a policy, you can always reduce your premium on that policy. You cannot increase your premium amount on the particular policy, but you can take out a new policy in addition to your initial policy. In fact, many of our members end up taking out multiple policies once they see the benefits of their initial policy.

Deciding on your premium deposit amount and frequency doesn’t have to be scary. On the contrary, we are with you every step of the way to make sure your policy fits your lifestyle in every way. As your life changes, so does your policy, as it should.

Your policy, your premiums, your way. This is what it feels like to be in control of your money.

To learn more about this method and what it can do for you, please visit www.TheMoneyMultiplier.com , scroll to the very bottom and click on “Member Area.” Enter the password “bankwithbrent” and watch the presentation that appears on the next page.

When you’re ready to get started on creating your financial legacy or if you have more questions, please email us at info@themoneymultiplier.com, or give us a call at 386-456-9335, and one of our mentors will be in touch with you.

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The (Bad) Spend Trend

By Gabby Darroch

Einstein once said, “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” And when someone with a brain that powerful and with knowledge that brilliant tells me to pay attention, guess what I’m going to do–pay attention!

What he’s really saying is this: There is more to spending and earning money than meets the eye. We are taught (wrong) to think about money one way: Money is necessary to live. You must work to earn it, only to spend it on things you need. But once that money is spent, it’s gone forever, right?

It doesn’t have to be. Not with The Money Multiplier Method at work.

earn-3172501_1280Robert Kiyosaki, mentor to the millionaires and author of Rich Dad Poor Dad, has explained one crucial difference between the rich and the poor. He says, “The poor and the middle class work for money. The rich have money work for them.” Kiyosaki points out that the poor spend their hard earned money on expenses and liabilities, things that take money out of their pockets. The rich and the wealthy, rather, spend money on assets and things that bring them more money.

That’s what The Money Multiplier is. It’s a machine, or a process, that keeps your money in your pocket. The first rule of the wealthy that most people aren’t taught is that to be wealthy, you must buy assets first.

Here is what you’re doing: You have $1 in your pocket. Traditional financial knowledge tells you to spend that $1 on something you need and work for another dollar to spend on something else you need.

Here is what you should be doing instead: You have $1 in your pocket. You use that $1 on a contract that guarantees you 4% growth each year. And that 4% growth ensures that you can watch your money grow while still using it on what you need and leaving it to your family all at the same time. This is how true wealth is acquired. And this is exactly how The Money Multiplier operates.

money-2696234_1280It gives you a real place to put your money, guaranteeing at least 4% growth, while still having access to that money and creating generational wealth.

The Money Multiplier is an asset.When used as recommended, it can bring you lasting wealth without changing your cash flow, requiring you to work any harder, taking on any additional risk, or losing control of your finances.

It’s what the wealthy use and have been using for over 200 years. Maybe it’s time you saw what it can do for you, too.

To learn more about this method and what it can do for you, please visit www.TheMoneyMultiplier.com , scroll to the very bottom and click on “Member Area.” Enter the password “bankwithbrent” and watch the presentation that appears on the next page.

When you’re ready to get started on creating your financial legacy or if you have more questions, please email us at info@themoneymultiplier.com, or give us a call at 386-456-9335, and one of our mentors will be in touch with you.

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Mortgage Defaults

By Stephanie Mojica

With an unprecedented national and global economic crisis, real estate industry experts have varying opinions on how the situation will affect mortgage defaults.

group-2822423_1280“The pandemic-induced closure of non-essential businesses caused the April unemployment rate to spike to its highest level in 80 years and will lead to a rise in delinquency and foreclosure,” Frank Nothaft, chief economist at CoreLogic in Orange County, Calif., said in a press release.

“By the second half of 2021, we estimate a fourfold increase in the serious delinquency rate, barring additional policy efforts to assist borrowers in financial distress.”

Paul Cooper is manager of the Kansas-based Totes of Notes. The company buys and sells distressed real estate debt throughout the United States. In a recent email interview with Realty411, Cooper said mortgage defaults have significantly increased.

“In fact, April 2020 had the highest rate of mortgage defaults for any given month on record,” Cooper said. “It took the last recession a long time to hit its peak, which was lower than this April.”

chart-5061484_1280Cooper added that many of his real estate notes have not been paying regularly for the last few months.

“It’s going to get much, much worse before it gets better,” Cooper said.

However, Jay Tenenbaum, founder and president of the Arizona-based Capital Development of Scottsdale Rei, LLC said in a recent email interview that mortgage defaults are not on the rise. His company is a private equity real estate investment firm that specializes in acquiring assets nationwide.

“Based upon information and articles I have read, mortgage defaults are not on the rise — at least not yet,” Tenenbaum said. “The multitude of mortgage forbearance relief, has, at least for now, prevented the dramatic increase in defaults that we saw in 2008.”

While Tenenbaum emphasized that he does not wish to downplay the economic and social impacts COVID-19 has had on the country, he said there are people taking advantage of government programs to the detriment of real estate investors.

“The local, state and federal programs are/were necessary,” Tenenbaum added. “Having said that, these programs, etc. allowed many others to take advantage. We have all heard stories of furloughed employees who’d rather collect unemployment than go back to work.

“With regard to the issue of mortgage defaults, the federal/state forbearance programs were intended to minimize the risk of foreclosure, i.e. avoid a repeat of 2008, etc.

“Yet, a recent article stated that only 5% of those receiving mortgage forbearance relief did not have sufficient income to make their mortgage payments. Conversely, 95% of homeowners who were approved for forbearance relief can make their mortgage payments.”

percent-226314_1280Fuquan Bilal, CEO and founder of NNG Capital Fund of New Jersey, echoed similar sentiments.

“A lot of people, even if they didn’t suffer from COVID, still took advantage of not paying the mortgage or going into some type of deferral program,” Bilal said. “And then there were people who were genuinely affected by it. So, you have a mixture of that.

“Plus, people who are not working — even though they’re collecting unemployment, some people are still going to try to opt to see what programs the banks have and/or push the banks to see what they can get out of them.

“We saw the same thing happen with loan mods. When the market crashed, a lot of people strategically defaulted. So, you have a lot of strategic defaults that are happening.”

What does all this economic chaos, whether intentional or unintentional on the part of borrowers, mean for real estate investors?

“If you’re looking to buy distressed real estate notes, then all this is music to your ears,” Cooper said. “Because this means there will be plenty of inventory for non-performing note investors.

“You could also look at offering loans to people that are out of work. This would be riskier, but you could charge higher interest rates.”

According to Cooper, opportunities will also increase in the coming months and years for tax lien/deed/certificate investors as well as those interested in short sales and foreclosure deals.

banner-1165975_1280However, Cooper emphasized caution — especially during a global economic crisis.

“If you’re looking to invest, then I’d sit on cash until really good deals come around.

“If you don’t know what you’re doing, then I’d spend a lot of time trying to find somebody you can trust that you can invest with and learn from. More fortunes are made during bear markets than bull markets. You need to know how to protect yourself and take advantage of the situation.

“Be careful shelling out big dollars for an investing or real estate education. There are all kinds of con men coming out of the woodwork who have only done a handful of deals and only know how to sell you a course.

“Most successful investors are happy to teach you the game if you get in a deal or partner with them. It’s a good way to earn and learn. This way if you don’t understand the investment or like it, then you have a professional to handle it for you.”

Tenenbaum noted that when mortgages default, it creates a buyer’s market because of the increased supply of available inventory.

“Investors are nimbler and more equipped to obtain access to distressed homeowners and seek to acquire such properties. Also, in a distressed market, acquisition price is at a greater discount, thereby allowing investors to achieve greater profits.

“Last, banks and hedge funds are motivated to sell their assets as maintaining non-performing assets on their books puts their balance sheet and lending capabilities at increased risk.”

bad-19907_1280According to Bilal, unemployment is the number one indicator of an abundance of opportunity for note investors. However, he believes opportunities are scarcer now than they will be in the coming months.

“I believe that the banks really don’t want to take a position of foreclosing on people,” Bilal explained. “So, they are going to try to work it out; they are going to try to come up with modification programs.

“We’re seeing some of the defaults now, but I believe we’ll start to see some of the foreclosure activity maybe nine months to a year from now. They (the lenders) will probably run them (the borrowers) through a process to try to work it out, and if they’re not able to work it out they’ll start the foreclosure process.”

Cooper echoed similar sentiments about long-term plans paying off better for investors.

“The next 6 to 12 months could be rough as far as seeing good returns,” Cooper said. “However, there are good deals that are currently available that will pay off within a year or so. So, make sure to get a good price when you buy and patiently work through the investment.

“If you need money within the next 90 days, then you need a job not an investment.”

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Differences Between a Policy Loan and Withdrawal

By Gabby Darroch

I know many people have had the concern when it comes to taking a loan from their policy. Typically, loans have a bad connotation. But that is because taking a loan from your neighborhood bank ends up losing you money. Taking a loan from your policy, however, ends up doing the exact opposite. So around here, we encourage you to take loans because we love making you money!

atm-1524870_1280You may be wondering how that is even possible, or why, since it’s your money, you can’t just withdraw the money you need from your policy. The answer will require you to train your brain to think differently about money than you ever have before. But that’s okay. This is where the shift happens and this is where your journey to financial freedom can begin.

How Traditional Financial Institutions Work

You work, get paid, and deposit some of your income into your bank account. And for convenience sake and for some perks like online access, you’ve got yourself a system that you’re happy with.

Now, when you’ve got something you need to purchase or finance, you take some of that money out in the form of a withdrawal.

Look at this example to see why that system doesn’t make sense when you have your policy as an alternative:

Let’s say you have $1000 in your bank account and you withdraw $500 to pay some bills. Now you’ve lost all the perks and benefits (such as interest earning potential) of having that $500 still in the bank. You’ve interrupted the compounding interest. And essentially lost money by utilizing the typical withdrawal method.

The Better Alternative: Your Policy Contract

When you pay your premium deposits, your money is safe in your policy’s cash account. Then, when you decide you want to take money out of your policy to pay for something, the insurance company sees that you have the collateral of your policy to back up your need. Because of this, they loan you some of their money.

umbrella-2891883_1280That’s right. You’re not withdrawing any of your money, so you’re not interrupting the compounding interest. Your money in your policy is still earning interest, even while you take out a loan. And the minimum guaranteed growth rate is 4%. So not only is your money earning more in interest than it would in a traditional banking system, you also never lose the money within your policy, even if you take a loan.

You haven’t stopped your dollars from growing!

Rest Assured

Like I said before, this concept will take some getting used to. It’s not often that something that is “too good to be true” is actually TRUE. But this, my friend, is one of those times.

Your money in your policy is still your money. You can use it whenever you like, just as you would use money that’s been deposited into your bank account. But with The Money Multiplier Method, you can borrow that money, while never taking away it’s ability to earn 4% interest within your policy.

interests-4786422_1280And the market trends? They no longer matter. Your policy keeps growing steady at a 4% minimum. So go ahead, take a loan from your policy. And watch the money keep flowing.

To learn more or get started, please visit www.TheMoneyMultiplier.com . Scroll to the very bottom and click on “Member Area.” Enter the password “bankwithbrent” and watch the presentation that appears on the next page.

When you’re ready to get started on creating your financial legacy or if you have more questions, please email us at info@themoneymultiplier.com, or give us a call at 386-456-9335, and one of our mentors will be in touch with you.