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Listen to LIFE-CHANGING REI Tips with Larry Goins

Don’t Waste Your Commute Time – LEARN WHILE YOU DRIVE

University on Wheels in the way to expedite growth + explode your income.


What is University on Wheels?

It’s simply making your car a university on wheels by listening to personal and professional development podcasts during your commute.

Some implement this technique further by listening to programs while their doing chores around the house, and at the beginning or end of their day.

As real estate entrepreneurs it’s important to use our TIME WISELY.

REMEMBER: Time is the most important asset we have, don’t wait a second of it.

We want to help your mission of Growing, Learning and Transforming your life to a new level of success and abundance.

Listen in to this week’s Invest Wisely podcast with our guest, Larry Goins, and learn transformational tips to take you higher.

Larry is one of the most active investors in the country and he’s ready to help you grow your real estate portfolio too.

JUST CLICK HERE to connect to our Invest Wisely podcast — Happy Investing!

 

10 Rules of Successful Real Estate Investing

By Marco Santerrelli, CEO of Norada Real Estate Investments

I came up with the following rules of successful real estate investing over my many years of successes and failures. These are the same rules I follow today and share with our clients at Norada Real Estate Investment.

1. EDUCATE YOURSELF Knowledge is the new currency. Without it you are doomed to follow other people’s advice without knowing if it’s good or bad. Knowledge will also help take you from being a “good” investor to becoming a great investor, and that knowledge will help provide a passive stream of income for you or your family.

2. SET INVESTMENT GOALS A goal is different from a wish; you may wish to be rich, but that doesn’t mean you’ve ever taken steps to make your wish come true. Setting clear and specific investment goals becomes your road map and action plan to becoming financially independent. You are statistically far more likely to achieve financial independence by writing down specific and detailed goals than not doing anything at all. Your goals can include the number of properties you need to acquire each year, the annual cash-flow they generate, the type of property, and the location of each. You may also want to set parameters on the rates of return required.

3. NEVER SPECULATE Always invest with a long-term perspective in mind. Never speculate on quick short-term gains in appreciation, even in a heated market experiencing double-digit gains. You never know when a market will peak and it’s usually 6 to 9 months after the fact when you find out. Don’t chase after appreciation. Only invest in prudent value plays where the numbers make sense from the beginning.

4. INVEST FOR CASH-FLOW With few rare exceptions, always buy investment property with a positive cash-flow. The higher,  the better. Your cash-on- cash return is directly related to the before-tax cash-flow from your property.

Cash-flow is the “glue” that keeps your investment together. Your equity will grow over time (through appreciation and loan amortization), while the cash-flow covers the operating expenses and debt service on your property.

5. BE MARKET AGNOSTIC The United States is a very large country made up of hundreds of local real estate markets. Each market moves up and down independently of one another due to many local factors. As such, you should recognize that there are times when it makes sense to invest in a particular market, and times when it does not.

Only invest in markets when it makes sense to do so, not because you live there or you bought property there before. There’s an element of timing and you don’t want to buck the trend.

6. TAKE A TOP-DOWN APPROACH Always start by selecting the best markets that align with your investment goals. Most investors start by analyzing properties with little to no regard of its location. This can be a big mistake if you don’t consider the investment in light of the market and neighborhood it’s in. The best approach is to first choose your city or town based on the health of its housing market and local economy (unemployment, job growth, population growth, etc.). From there you would narrow things down to the best neighborhoods (amenities, schools, crime, renter demand, etc.). Finally, you would look for the best deals within those neighborhoods.

7. DIVERSIFY ACROSS MARKETS Focus on one market at a time, accumulating from 3 to 5 income properties per market. Once you’ve added those 3 to 5 properties to your portfolio, you would diversify into another prudent market that is geographically different than the previous one. Typically that means focusing on another state.

One of the underlying reasons for diversification within the same asset class (real estate), is to have your assets spread across different economic centers. Every real estate market is “local” and each housing market moves independently from one another. Diversifying across multiple states helps reduce your “risk” should one market decline for any reason (increased unemployment, increased taxes, etc.).

8. USE PROFESSIONAL PROPERTY MANAGEMENT Never manage your own properties unless you run your own management company. Property management is a thankless job that requires a solid understanding of tenant-landlord laws, good marketing skills, and strong people skills to deal with tenant complaints and excuses. Your time is valuable and should be spent on your family, your career, and looking for more property.

9. MAINTAIN CONTROL Be a direct investor in real estate. Never own real estate through funds, partnerships, or other paper-based investments where you own shares or other securities of an entity you don’t control. You always want to be in control of your real estate investments. Don’t leave it up to corporations or fund managers.

10. LEVERAGE YOUR INVESTMENT CAPITAL  Real estate is the only investment where you can borrow other people’s money (OPM) to purchase and control income-producing property. This allows you to leverage your investment capital into more property than purchasing using “all cash”. Leverage magnifies your overall rate-of-return and accelerates your wealth creation. As long as you have positive cash-flow and your tenants are paying off your mortgage for you, it would be foolish not to borrow as much as possible to buy more income property.

For more information, visit: http://www.noradarealestate.com/

 

Land Trusts vs. Limited Liability Companies

By Randy Hughes aka Mr. Land Trust

Recently I read an article by an attorney telling his readers not to use a Land Trust. He recommended titling your investment property in a Limited Liability Company. His reasoning was that Land Trusts are only a “deterrent” to a lawsuit and they do not provide “true” asset protection. The attorney went on explaining how any lawyer “worth his salt” would find out you are the beneficiary of a Land Trust as the result of a judgment debtor’s exam (which is a hearing in a court room…sometimes called a Citation to Discover Assets). The attorney writing this article concluded that you have “zero” privacy with a Land Trust and if you want privacy you should “save the expense” of a Land Trust and title your investment real estate directly into an LLC (Nevada or Delaware).

After over 40 years in the real estate investment business, I can spot an attorney who understands the law but does not have practical real world experience. I agree that LLC’s have better asset protection than a Land Trust, but Land Trusts have far better privacy elements than LLC’s. I use LLC’s in my business but NOT to hold title to investment property. Let’s review the benefits of using a Land Trust.

LAND TRUSTS:

  • Are NOT registered anywhere on the planet
  • Do not require a registered agent
  • Pay no franchise taxes
  • Cost nothing to form (you can form them yourself)
  • File no tax returns
  • Require no tax ID number
  • Can be formed in a state other than where the property is located (for terrific privacy and asset protection)
  • Can easily hold each property separately from other properties to keep all investments insulated
  • Can have an LLC, Corporation or Personal Property Trust as its beneficiary

Experienced real estate investors understand that putting all of your properties into any one entity (be it an LLC, Corporation or a Land Trust) is a nexus for a lawsuit. Remember grandma’s advice to not put all your eggs in one basket? It makes logical sense to put each property into its own separate Land Trust and then make the beneficiary of the trust your LLC or Corporation.

This yields the best of both worlds from a privacy and asset protection standpoint. Since the Land Trust Agreement is not recorded anywhere no one can find out who the true owner of the trust is without a full blown lawsuit…which is expensive for your adversary. Furthermore, if the property is in one state, the Land Trust is formed in another state, and the LL C beneficiary is registered in a third state you get a dy-no-mite structure that is not only difficult to unravel but legally expensive to pursue. Most contingency fee lawyers would give up and start looking for another sucker to pursue.

Real estate investors are more susceptible to a lawsuit than most other Americans. The general public’s perception of a real estate investor is that they do not have any debt on their property, have lots of cash in the bank and tons of positive cash flow. So, even if the investor is upside down on their property debt and suffers monthly negative cash flow they are still at the mercy of the contingency fee lawyer and his/her dead-beat client. Keeping property isolated in separate Land Trusts makes logical practical sense to those of us in the trenches every day. A huge benefit to holding title to each property in a separate trust is the ability to finance without affecting the other properties.

You can also sell property on an installment contract basis without affecting other properties. If you title multiple properties in one LLC the lender will want to tie up all the assets of the LLC as collateral for the loan on just one property. Take your advice from a streetwise investor with decades of real-life experience. Use a Land Trust to hold title to your investment real estate…you will be glad you did!

To receive a FREE copy of my booklet “50 Reasons to Use a Land Trust” send me an email at: mailto:randy@mrlandtrust.net

 

MULTIFAMILY PROPERTIES: Should It Be in Your Future?

By Tom K. Wilson

One of the most common questions I get is: Which are better investments, multifamily properties (apartments) or single-family homes? My answer is, both, but not multifamily without experienced or qualified and experienced partners.

A multifamily property is defined as 5 units or greater, and single-family homes, duplexes, triplexes, and four-plexes are referred to as “1-4s”. For someone with a goal of building a medium to large real estate portfolio, I generally recommend considering the inclusion of a commercial or multifamily property with one caveat: Don’t start by yourself and don’t put all of your real estate working capital into one large investment.

After purchasing and selling over 2,000 units and 12 multifamily properties over 37 years, my experience is that the best investment property I ever owned was a multifamily property and the worst investment property I ever owned was a multifamily property. These properties have ranged from 10 units for $400K to 176 units for $10M.

Multifamily properties offer higher potential reward along with higher risks. On the surface, an apartment building seems to be nothing more than many units, like single-family detached homes, but in one address, however, their proper management is a specialty. There are many more variables and expenses than in 1-4s including utilities, landscaping, contract maintenance, on-site maintenance, office management, tenant profile, advertising, lender and government inspections, requirements, and more.

So why are the largest investors attracted to them? For one factor, the rent ratios are usually higher and, therefore, the potential Net Operating Income (NOI) and the cash-on-cash return can be higher. In the multifamily world, rent ratios are represented as the GRM (gross rent multiplier): The property price divided by the annual gross income, the lower the better.

There is also generally an efficiency of scale for maintenance and other expenses, and with good management, expenses are easier and more efficient to control. The advantage of scale best manifests itself when the monthly income is great enough to afford full-time, on-site management and maintenance. For non-high end metro areas this is usually about a $2.5M property or higher. With a typical 60-70% loan this is a stiff barrier to entry that may best be solved by partnering with other experienced investors.

And then there is the issue of the loan. In these post crash years, getting a government- backed loan such as from Fannie Mae is virtually impossible in today’s tight money market without current or significant past multifamily ownership experience. Regional banks and private lenders may sometimes provide loans at the cost of higher rates, shorter terms and amortization, and lower LTVs. For investors who are “tapped out” at 10 loans for 1-4 residential properties and can’t get more loans because of Fannie Mae loan quantity restrictions, a multifamily purchase has the advantage of not being forbidden just because you have 10 or more loans on 1-4s.

For an investor who would like to own a multifamily product, but who does not have the experience or local residency that the lender wants, one can work with a syndicator who can connect you with an investor or investors who can qualify for the loan, reduce your risk and exposure, provide the expertise needed to evaluate a deal, and to manage the property for maximum return on investment.

Many investors are drawn to small multifamily “Tweeners” (5-50 units) because it is a lower entry price. However, the problems include:

  • Loans are generally more difficult to obtain
  • Loan terms are not as good
  • Price per unit is higher
  • Banks prefer local borrowers
  • Properties are generally older
  • The economics cannot justify full-time, on site management and maintenance

And, it is usually difficult to manage effectively. Stories of offsite management showing up after a week or two at small multifams only to discover that drug dealers have run off decent tenants are common stories. Also, a single vacancy in a small mulitfam has a greater percentage impact on cash flow than in a larger investment. Again, one valuable way to mitigate these factors is to purchase a larger product with partners through syndication.

Due diligence is much more critical than with single-family rentals but there are also more resources available to get a lot of the general information because there are a lot of marketing firms that support the REIT and institutional investors who mostly purchase large multifamily and commercial properties.

A multifamily seller’s proforma (projections of the potential income and expenses in a perfect world) should for the most part be disregarded. True expenses are seldom less than 50-60% of gross income, otherwise be suspect. And study local demographics carefully. Visit the prospective property unannounced, walk it, and then sit in your vehicle to observe who is living on and visiting the property. Take note of the time of day and night. Yes, evening observations are the most enlightening. Go to the local schools, parks, and retail stores and see whom your prospective tenants and demographics are.

Do you feel at risk parked so near your potential property, or would you feel comfortable joining the tenants for a barbeque? Please do not rely on website data about the neighborhood. There are a lot of variances in a one-mile radius. Lastly, my post data analysis is always punctuated with the satellite view question: Would I be comfortable with my daughter living here?

In addition to syndications an alternate way to have many of the benefits of a multifam with less money down, an achievable loan, and much less risk is with a portfolio of single-family properties. Throughout my investment career, I have always also owned many 1-4s.

 This approach spreads your risks by building a “mutual fund” of properties in various locations. In addition to having a variation of rent, price appreciations, and occupancies that tend to converge on the averages for a region, single-family homes are more liquid, have less expenses, are less complex to manage, and tend to appreciate more because they are based on owner occupant demand rather than on income. In the next decade, most economists project a higher upward trend in occupancies and rent for single-family homes and for multifams.

The most important ingredient is to select that right team of professional resources. How much experience and knowledge do they have in the region and product of interest? Are they invested in the products themselves? If you are considering partnering to own multifamily properties, do they have experience with syndications and access to experienced and qualified investors, lenders and property management?

When you invest in real estate, don’t start with the “deal.” An honest assessment of the amount you have available to invest, your risk tolerance, your experience, and your long-term goals, along with the right professional team, will lead you to the right deal or deals: A multifamily investment or a portfolio of cash-flowing single-family properties? I choose both.

Tom Wilson is a 37-year real estate veteran who has executed over $100M and 2000 units of real estate investments. Wilson is also a weekly host of the Real Estate 360 Radio program on KDOW 1220 am every Wednesday at 2 pm. Listen to his podcasts on iTunes or his website: www.tomwilsonproperties.com

 

Five Steps to Raising Private Capital

By Jillian Ivey Sidoti, Esq.

Many people assume that in order to raise capital all they have to do is go out and find potential investors to whom they may pitch their idea. However, the laws regulating the sale of any security are such that operating in such a matter would be illegal.

Too often, people learn fact and decide that their aspirations are out of their reach… or worse, raise the capital illegally, putting themselves at risk to suffer very serious consequences should the SEC catch on to what they are up to. Truth is, with the appropriate planning and effort, anyone can raise the capital necessary to execute their business plan.

At a very abstract level, there are five steps to raising private capital, and they are as follows:

1. Develop Your Business Plan: One cannot very well start a company without a plan! At the very least, you want to put together bullet points of the “who,” “what,” when,” “where,” “why,” and “how” you will put your company to work and start generating income. From there, you can flesh out the details.

2. Set Up Your Company: Your next step is to decide what type of entity is appropriate for your business plan, and in which state. A corporation, limited liability company, and limited partnership each have their respective positives and negatives. The particulars of your situation will dictate what best fits your company.

3. Decide What To Offer Investors: If people are going to invest money in your company, one of the most important questions they will have is “what do I get out of this?” First and foremost, you have to analyze your business plan to determine your baseline of what you can afford to offer investors in addition to what the market dictates in your particular industry. You must then determine what you are comfortable offering investors and land somewhere between those points. This could be a percentage return on their capital investment, simply just a share of profits the company earns, or a combination thereof.

4. Put Your Offering Documents Together: Not only may you be required by law to present offering documents (called a “Private Placement Memorandum”) to your prospective investors before taking their money in order to ensure you have made all the appropriate disclosures, but such documents will provide all the information they need to decide to make the investment. The private placement memorandum encompasses the three “D’s” – disclaimers, disclosures, and details.

5. Find Investors: For many entrepreneurs, finding investors is the most intimidating step in the process. However, if you organize and execute your capital raising efforts in the correct manner, then you will be well on your way to meeting your capital goals.

Yes, this is a very boiled down step-by-step. Yes, you will need the advice of a professional to help you along the way. However, you need to realize that if you do give all the above steps the appropriate amount of attention, there is no reason that you cannot raise the capital you need.

Jillian Ivey Sidoti is a partner in Trowbridge, Taylor & Sidoti, a boutique securities law firm with locations in California and Florida. Jillian may be reached for consultation at 323-799-1342 or at: jillian@jilliansidoti.com

 

Meet the Future of Private Money

By Tim Houghten

In the words of the great Bob Dylan: the times “they are a-changin,” for Sean Morsi and Ajay Mehra — CEO and CFO of MOR Financial, respectively — the notion of shaking things up has been woven into their company’s genetic code. It may come as a surprise to hear that an asset- based lender, known for utilizing cutting-edge marketing and high-tech analytics, assert for a traditional approach in customer service and building lifelong client partnerships.

With an average yield returning 10.5% for their lenders, Morsi and Mehra have compiled more than $70 million in committed capital from their investors, with roughly $35 million in their active in-house servicing portfolio. Built in a relatively short period of time with a focus in Southern California, where both were raised, the two have also set their sites on penetrating the Florida, Nevada and Arizona markets.

Ajay came on board as a partner in MOR Financial in 2009, with both partners coming from established lending backgrounds before re-shifting focus after the market crash. “Since then, we’ve grown into a premier private lender here in Southern California, specifically around Los Angeles County,” notes Morsi.

As the new kids on the block, the business moguls captured a very large percentage of the market in a very short span of time. A large percentage of their competition has been in the private money lending sector for 20 years or more. Mehra added that the industry had always been something of an “intuitive-based” one, which both men felt kept it from growing like it could. “We wanted to deliver structure,” said Mehra. “We wanted to shift the industry from the whimsicality it had.”

The demographic for private money investors today, according to the executives includes much of the younger mindset than was seen 10 or 15 years ago. The change in development is spawned mainly from disappointed and lack of confidence with the stock market and the desire for more tangible investments.

“Thanks to the stock market crash, several savvy financiers have a sour taste in their mouths, yet are still hungry for yield,” said Mehra. “We are seeing people, who would otherwise have investment portfolios centered around Wall Street now, deviating into real estate.” Today, instead of owning Microsoft as a growth stock, youthful investors would rather invest in assets they can hedge. The emerging generation with access to capital doesn’t have faith in the stock’s paper and would rather place funds into something concrete. At the end of the day, a hard asset like real property is never worth zero. They can hang their hat on that!

Another way the industry looks different today is the high-creditworthiness of the borrowers. For the most part, the “flippers” and other borrowers MOR Financial scopes have great credit. In the past, hard money lending was often seen as the realm of the hard-luck borrower. Mehra suspects, “Maybe 20 years ago, that was the case, but a lot has changed. Banking guidelines being as stringent as they are have really opened things up for private money lending. Where else are people supposed to go to get the access to leverage?”

Morsi adds, “Today’s investors are strong and hungry.” Since MOR comes from the customary lending side, the company strives to maintain and deliver on customer service. And deliver they did. MOR Financial has set themselves apart by taking the insight of due diligence and recalibrating it in a way to center on becoming trusted advocates for their borrowers.

“We always try to play the devil’s advocate for their benefit,” said Mehra. “Not to kill the deal, but to make sure our affiliates aren’t walking into a black hole.

As the company’s directors, Sean and Ajay look at every deal as though it was their own so they can provide bona fide feedback to their clientele.

With repeat borrowers, MOR has rapport in the industry. The company aims to educate everyone from their able borrowers to individuals just breaking in — and they work with a lot of beginners.”

“We’ve always felt that the most durable relationships are built through education,” mentioned Mehra. Since MOR has considerable professional relationships with their borrowers, it brings perhaps an unexpected benefit: fewer defaults.

Mehra and Morsi both feel strongly on not being viewed as a corporation, but as a part of a business network working conjunctively to meet each other’s needs. Out of 360 plus transactions that they’ve written, only two notices of default have occurred.

One of MOR Financial’s core principals centers on the belief of education and the conventional techniques of equity partnership arrangement, mainly structured for borrowers who are just starting out.

“You can literally walk into a deal with no cash out of your pocket,” said Morsi. “We’ll provide the investors willing to bring capital to close and supply the rehab funds. All you need to have is a great asset and an ability to manage a property. The financing side we’ll take care of.”

The program has allowed many of MOR Financial’s clients to evolve. With their eminent skill and market presence, they’ve won over the masses. Clients effortlessly transform from wholesaling a deal to doing their first flip. MOR Financial is giving beginners an opportunity that cannot be captured elsewhere.

For information about MOR Financial visit wwwMORFinancial.com

 

Vacant Properties = Motivated Sellers!

By Linda Pliagas

Every profession has tools of the trade, products which help us get ahead in our industry. Thanks to innovative technologies, investors now also have a fantastic tool to zero in on neglected properties. Find Motivated Sellers is a new product that can help investors locate vacant homes around the country or right in their own backyard. 

Created by entrepreneurial investor Chris Richter, who partnered with veteran industry leader Kent Clothier, the software is helping many sophisticated buyers find their deals. In fact a loyal reader in San Francisco, Jimmy Tu, a master wholesaler and rehabber, was able to land three vacant property deals in less than three months utilizing the Find Motivated Sellers system.

I recently had the pleasure of interviewing Chris and Kent so they could explain this exciting new technology and how it can benefit more of our readers.

Linda: Tell us a bit about the Find Motivated Sellers Now system. How did it come about?

Kent: Find Motivated Sellers Now is the product of necessity and data insight. In 2008, co–founder and creator Chris Richter embarked on a three month research mission to uncover insights in the property data that would act as an early indicator that a property had a high likelihood of being sold at discount. One glaring indicator associated with many of the deeply discounted sales, as well as those that sold quickly, was that they were vacant.

Linda: What are some of the benefits to using Find Motivated Sellers Now?

Chris: The benefits are time and money. The platform is designed to allow any user, regardless of experience, to log in and, quickly and easily, create and distribute marketing to a highly targeted list. It’s quick and easy, with just a few clicks of a button. Due to the list being targeted to an audience with a far higher likelihood of turning into a seller, the ROI is increased dramatically.

Linda: Tell us about the partnership you formed for this new marketing tool.

Chris: I reached out to Kent Clothier in November of last year and demonstrated how I was using this method to find highly motivated sellers, off market. Despite being in a market with one of the tightest inventories in the country, I was able to effortlessly locate phenomenal deals.

Linda: I like that a mailing campaign can be executed directly from the system, which makes marketing easy to do. Can you please discuss that further?

Kent: The system is designed to be dropdead simple to use, even for folks who are not tech savvy. Users can simply log in, click their state, county, or city, then run a search based on their criteria. Investors can zero in on vacant homes, vacant commercial, high-equity properties, etc.

From there, users can export to excel or simply mail directly from within the system to their list. It is the built in simplicity and functionality that really makes it such a powerful tool.

Linda: Why are vacant property owners a great audience to zero in on?

Chris: Vacancy is what we call a leading indicator of distress. What the numbers tell us is that although not all vacant properties have distressed owners, most distressed home sales are vacant. What makes it the most profitable among lists for direct mail is the fact that the property is generally vacant before it is an REO, before it is probate, before it is listed, before you see a lien, etc. The vacancy is typically the first warning sign that someone may need to sell soon. Previously, this list wasn’t publicly available.

Linda: Why do good homes end up being neglected and abandoned?

Kent: Homes become vacant for many reasons, not all of these reasons would make someone want to sell. Some common themes we see in vacant homes where people do want to sell include: pre–probate, family member moved to nursing home, eviction, seller moved out of area, rental vacancy, death with no probate, and even an occasional jail sentence.

Linda: What other insight can you add that investors can learn from?

Kent: Don’t be afraid to mail more and do extra marketing, it will make your phone ring.

Linda: Does your system have sample letters that can be used? Does it also provide phone numbers?

Chris: Yes, the system includes letters for both investors and brokers that have been tested repeatedly and proven to work well. Again, this is a push-button system, we have done all the heavy lifting for you. Once a user has set up their account, they are literally a couple minutes, and a few clicks away, from having proven copy in the mail and out the door. We do not provide phone numbers, we want them to call us.

Linda: How can we learn more?

Chris: Readers can see our demonstration on www.FreeVideoFromKent.com Thanks and let us know how it goes.

 

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NEWSFLASH: The Record Has Been Broken…

In 2017, CIX.com broke records for connecting investors with funding. We’re talking nearly $3 BILLION in loans facilitated monthly!

What does that mean for you? In 2018, we want to help fund twice as many deals! We’ve already added more lenders to service your needs and even more are coming on board in the weeks ahead. That means more lenders compete to fund your investment properties – residential and commercial for your short or longer term capital needs.

In the last two months alone, our lending partners brought hundreds of millions more capital to the table; they’ve loosened guidelines and are eager to become your funding partner in 2018.

Simply put, this means more options and better terms for your next investment property. January’s numbers are going to be epic. Why not get your share?

Get connected in less than two minutes – and the lenders that will immediately contact you are vetted, verified, and 100% secure!

Submit your application and start 2018 with a locked and loaded funding option for your next investment!

Putting the REAL in real estate,
Connected Investors and Realty411

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Zoom to $uccess in 2018 by Learning from Millionaires at REALTY411 Expos – LEVERAGE YOUR TIME WITH OUR RESOURCES & CONNECTIONS

Stacks of One Hundred Dollar Bills with Small House.

Leverage is the Answer.

If you, like most people enjoying a new year, are questioning how you can make more money in 2018 — then you need to learn about leverage.
What is leverage?
“The use of a small initial investment, credit, or borrowed funds to gain a very high return in relation to one’s investment, to control a much larger investment, or to reduce one’s own liability for any loss.” (Dictionary.com)

Whether it be investing in real estate, which is a tangible asset, or investing in paper or digital assets (such as stocks, FOREX, or the latest craze cryptocurrency), the principle is the same. And, leverage can increase your bottom line faster, IF the right investment is chosen.

A person can also leverage their time, money and connections to make a maximum impact and get from point A to point B faster and with less effort. We’ll discuss this after a quick illustration about how leverage can create a windfall… quickly.

Leverage is what catapulted my investment career many years ago, and it was a great learning lesson on appreciation and the leverage of existing capital.

At the time, Southern California was going though an upswing. The markets were appreciating nicely and I knew it was time to get in to leverage my time and resources for maximum profit.

I utilized funds from a recent home refinance to put a down-payment on a four-unit property, which was of fair market value, but a total fixer-upper.

Before I made the offer (beating out several others with a wonderful technique I will disclose in another article), I made sure the property would pay itself off from the rents. Important: I also saved some funds from the cash I had to do the work needed on the property.

Thanks to an appreciating market and our diligence in research in finding a value-add property, we soon saw amazing equity. As easy as this sounds, behind the scenes, months of daily work went into this.

To find this diamond of a deal, I had to be on alert for months, scour the internet for deals, drive around my target markets, plus engage in busy work on other deals that went absolutely nowhere.

Hard work is always rewarded, and within 18 months, we were in escrow again selling the same four-unit complex we purchased for $428,000 for a new price of $676,000. We took a $80,000 boot (cash) upon the sale and did a 1031 Exchange on the remaining balance to four multifamily properties out of state.

By investing outside of California, the equity from one single four-unit property was used to LEVERAGE into 24 apartments – 4 four-unit buildings.

So as you see, here are a few examples of how leverage can be used to Maximize your Time, Resources and Funds.

It was wonderful to receive that $80,000 check for my efforts and to go from owning a small complex to a portfolio of properties in two states!

The rewards of LEVERAGE have been duplicated over and over in my life, and now I’m lucky enough to be in a position to give back this and so much other first-hand knowledge that I have accumulated throughout my 20-plus career as a landlord in California and other states.

One of the ways I do this is by publishing REALTY411 (our alternate cover is Real Estate WEALTH), as well as REI Wealth Monthly. When I started 11 years ago, I was a one-woman machine and handled everything: sales, design, marketing, reporting… you name it, I did it!!
Now, I have an international staff and two offices in Santa Barbara County, plus I travel the country hosting LIVE EXPOS!
Last year, we produced 27 events in nine states, which brings me to how YOU can leverage this.

LEVERAGE YOUR TIME WITH US!

REALTY411 IS THE ORIGINAL REALTY INVESTOR MAGAZINE AND EXPO COMPANY

Now that you know the key to going from one level to the next is by catapulting yourself though leverage, I invite you to join me as we grow together at our events.

Without a doubt, I was able to leverage my time due to the amazing knowledge I’ve accumulated from so many years of hosting events, where I learned from some of the most active and successful investors and entrepreneurs around the country!

Our events are COMPLIMENTARY because we truly want to share the day with you and hope to positively impact your life. Be sure to visit REALTY411expo.com, our event website, for our Spring 2018 schedule (or see information below).

By the way, I recently once again, leveraged my resources and connections. My attorney, who is very well connected in Hollywood, introduced me to some award-winning producers and now I’m the executive producer of a TV pilot!?

Talk about the POWER OF LEVERAGE!!!

Let’s see how the Magic of Leverage will work in your life, visit Realty411expo.com

or sign up to be a free VIP member at: http://realty411network.com

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NEW YEAR, NEW LIFE, NEW PERSPECTIVE.

It’s 2018, and this is our year to LEVERAGE.

Are you ready to take action this year? Do you want to expand your mind, contacts and portfolio?

If so, don’t miss the opportunity to learn with the oldest magazine and expo owned by the same accredited investor since 2007.

We are the ORIGINAL realty investor magazine and expo company. Our sole mission is to expand knowledge and improve the lives of our readers.

And, without a doubt, 2018 is our time (and your time) to LEVERAGE with Minimum Risk & Maximum Reward!

We invite you to join us at one of our five complimentary expos this Spring to learn from investors who have been closing millions of dollars worth of deals, year after year. Talk with national landlords who have investments around the country. Meet like-minded individuals who may end up being future partners.

OUR LEVERAGE EXPOS – SPRING 2018

We Serve Complimentary Breakfast and/or Appetizers Are Available for Early-Bird Guests FOR ALL EXPOS!

START THE YEAR OFF RIGHT WITH SUCCESSFUL, ACTIVE INVESTORS WHO ARE READY TO EXPEDITE YOUR GROWTH!


PHOENIX, AZ – Jan. 20, 2018

Get MOTIVATED and have breakfast with local and out-of-town millionaire investors. Celebrate TWO new publications: Realty411 and REI Wealth Monthly (which is now also available in print too). Guests will receive over 200 PAGES of quality content created just for our publications. Attention wholesalers, investors or brokers: Do you need Operating Capital for your business or portfolio, we have the connections here!

SANTA MONICA, CA – Jan. 27, 2018

This event will have a special focus on the entertainment industry, and we will discuss and film some footage for our TV pilot, Property Pitch. Guests will have a chance to meet our award-winning producers and ask them “insider” questions about the entertainment industry! Guests are flying in from around the nation, multiple breakout sessions.

SANTA CLARA, CA – Feb. 10, 2018

Join us in the HEART of Silicon Valley as we focus on Tech and the Trump Economy in this event. What’s in store for 2018 as far as Real Estate software and technology that can create more profits, with less work?! We will also discuss Notes, Tax Liens, Commercial Real Estate, How to Take action Today!

SAN LUIS OBISPO, CA – Feb. 17, 2018

Discover the unspoiled beauty of the Central Coast of California as we host the ONLY real estate conference in this area. At this one-day conference, you’ll have the chance to meet investors from Paso Robles to Santa Barbara County. Meet the leaders of Central California – one of the most scenic and affluent areas in the state. This event is co-sponsored by Central Coast REIA.

ATLANTA, GA – Feb. 24, 2018

Enjoy Southern Hospitality with local and national investors as they UNITE in Atlanta for REALTY411′s Leverage Expo. Discover the latest strategies for flipping by a local expert, how to raise capital (even if you have little or no experience), plus how to buy properties with tax liens for pennies on the dollar,AND lots of other great 411.
Stacks of One Hundred Dollar Bills with Small House.

Announcing Launch of the Bay Area Commercial & Multifamily Real Estate Investment Club

NEWLY-FOUNDED BACOMM UNITES INVESTORS IN BAY AREA

Wilson Investment Properties is launching BACOMM: Bay Area Commercial & Multifamily, a real estate investment club that caters to investors of all experience levels looking to advance from rental homes and move up to the big leagues of commercial and multifamily real estate investing.

Members will also have the opportunity to invest passively in institutional grade investments for as little as $50,000.

The first meeting will be taking place on January 25, 2018 from 7 – 9:30 PM PST at 4500 Great America Parkway, Santa Clara, CA 95054.

Meetings will be held on the 4th Thursday of every month. Visit Meetup.com/bacomm for details.

If you can’t make it to the live event, join us each month on Facebook LIVE at fb.me/bacommclub. Events are always free to attend.

Announcing speakers Rick Knauf, Colliers International Executive Managing Director of the Bay Area Peninsula and Richard Smith, 4 decade real estate investor and tax professional!

We are pleased to announce our first speakers for the January meeting: Rick Knauf: Colliers International Executive Managing Director of the Bay Area Peninsula, speaking on lessons learned from a seasoned broker and investor.

Richard Smith: CEO of Richard Smith & Associates and 4 decade real estate accountant and investor, speaking on how to make the most with the new 2018 tax bill.

Through decades of involvement in real estate investment groups, we have found that the majority of resources focus on rental houses. There is very little quality education and networking that focuses on commercial and multifamily assets or how to best select and utilize syndications, unless they cater directly toward brokers, lenders, or established investors. BACOMM will cater toward those transitioning into investing in commercial and multifamily assets, and it is the first club of its kind.

Tom K. Wilson founded Wilson Investment Properties as a provider of turnkey rental houses and then progressed to commercial real estate after realizing the benefits of deal size and economies of scale. The company is now a provider of high-quality multifamily and commercial syndications with data-driven metrics for savvy investors. Mr. Wilson has always been a believer in free education, and BACOMM is one of his ways of giving back.

Tom K. Wilson is a 5 decade real estate investing veteran who has bought and sold over 4,000 units and over $450M of real estate in 6 states. Active in many real estate investment associations, Mr. Wilson is a frequent speaker whose candor and competence makes him an audience favorite.

He is the weekly host of the Real Estate Radio POWER Investing on KDOW 1220 AM.

Listen at www.tomwilsonproperties.com/radio-show.