My Billionaire Mentor Died. But His Life and Business Lessons LIVE With Me Forever

Image by Johana Peña from Pixabay

By Hector Padilla,

Broker, GRI, Accredited Investor

It’s no secret that a HUGE key to my success has been having time-proven and vetted mentors.

In 2007, I received an invitation to fly to Scottsdale, Arizona, to have breakfast with a billionaire. If you had this opportunity, would you hop on a jet to go meet a billionaire? Do you think that I capitalized on this “opportunity of a lifetime”? Yes or YES?
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Image by Gerd Altmann from Pixabay

If you answered YES, then you are 100% correct. Unfortunately, Bill the Billionaire* passed away in 2016 at the young age of 68. Very sad. In 1997, Bill was listed in Forbes Magazine as one of the 400 richest people in America. Inc. magazine estimated Bill’s net worth to be in the range of $2.4 to $3.5 billion. Let me share with you some of the lessons Bill the Billionaire taught me that I implemented into my real estate business. These solid strategies helped me purchase over $100,000,000 worth of real estate.

#1. A Daily To Do List = Millionaire Lesson.

A STOP doing list = Billionaire Lesson. Focus on Money Making Action.
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Image by Peggy und Marco Lachmann-Anke from Pixabay

STOP = The drama, TV, News Papers, Happy Hour, Social Media Addiction = Don’t be full of energy wasting activity.

2,500-year-old, time-proven wisdom = six days of skilled labor, and one day of rest.

#2. Finish your day on paper before you start.

Needs VS. Wants. What NEEDS to be done today? What do you WANT to do today, but can be pushed till tomorrow/next week? Who can you delegate your tasks too?

#3. You must do what is important, BUT not urgent:

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Image by Free-Photos from Pixabay

The fundamentals of success are important = Reading, Audio, GYM, Meditate/Prayer, Prospect, Lead Follow up. It takes discipline & focus to do what is Important, but NOT urgent. The masses run around like a chicken little, doing what is urgent, but NOT important.

#4. You can NOT earn $1,000,000 a year doing a $12-hour task!

If you do NOT have an assistant, then you are an assistant. How can you delegate and empower?
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Image by Gerd Altmann from Pixabay

#5. Remain in control, BUT not in charge of Daily Minutia.

YES, control your business. But NOT the day-to-day operations. Focus on wealth creation. Focus on prospecting and networking with people of substance.

#6. The broke & Billionaires have 24 hours in a day.

How do Billionaires get more accomplished? They buy time by being a blessing. HOW? By recruiting a skilled team. Then, they delegate and outsource. YOU become a blessing by creating jobs and opportunities.

#7. Don’t be the FLY on the window.

Don’t bang your head on the widow, till your death, with WRONG repetitive activity. Land, re-anchor yourself to find a new proven path to wealth and time freedom
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Image by Ronald Carreño from Pixabay

#8. Leverage of Time and Expertise.

Recruit a skilled TEAM and a proven vetted Mentor/Coach/Chairman. A mentor/coach/chairman can show you how to create exponential growth, so you can earn more in the next 12 months than you have in the last 12 years.

#9. Goals VS. Values:

Goals change like the weather. Values are consistent like the climate. Paycheck Goals VS. Family Values

#10. Pocket Promises.

Goals VS. Promises. What is the difference? When you promise your mother, wife, daughter, family, friends, staff that you will accomplish “a promise you made them” you have a 90% chance of accomplishing it, as long as you have a written Plan of Action. If you fail to plan, you are planning to fail.
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Image by Gerd Altmann from Pixabay

Plan your work and WORK your plan. Remember, as human beings we tend to do more for others than for ourselves. Write down your TOP 5 Promises on an index card with a simple Plan of Action on HOW you will accomplish your Pocket Promises. Be sure to read your Pocket Promises three times per day. I once asked Bill: “Knowing what you know now, what business would you get into?” He replied, “Find a NEED that the masses have and provide a solution”. For me Real Estate is that NEED. People NEED a place to live, work and play = Real Estate. Plus, in what other Time-Proven Business can you buy an asset with NO money and terms? Creative real estate investing opens the doors to that Billionaire Lifestyle, that so many of us desire.
 

Learn about Hector Padilla, Broker/GRI

*For privacy reasons, Bill’s last name has been purposely omitted. Mr. Padilla owns and operates HP Capital Investments, Inc, a real estate acquisition and investment firm in Los Angeles. Be sure to follow Mr. Padilla on Instagram #MyChairmanHP

Leading in Leads

Image by Gerd Altmann from Pixabay

By Bruce Kellogg

Got Leads?

Back in 1981, real estate agents in Silicon Valley agents gathered buyer and seller leads by open houses, door-knocking, “floor time” in the office as a receptionist, and some direct mail. None of this was sophisticated.
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Image by Paul Brennan from Pixabay

Things got sophisticated around 2005, before the Great Recession, when computers started being used for “data mining” or “data scraping”. Sellers of leads were able to access local governmental data bases for such leads as: 1) pre-foreclosures, 2) evictions, 3) building code violations, 4) probate estates, 5) tax liens, and more They then sold the leads to agents/brokers and investors. Or else they licensed the software on a monthly subscription basis. This still goes on, but it’s less effective now because the software is sometimes “dueling” with other companies’ software. This is a mature market now. With the arrival of social media, another source of leads has emerged. This article presents Atman Real Estate, “The Premier Real Estate Marketing Lead Generation Service”, and Victoria Kennedy, its Chief-Executive Officer (CEO). They are leading in leads.

Victoria Kennedy

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Victoria Kennedy
Victoria Kennedy is the CEO of Atman Real Estate, a lead-generation agency that is committed to providing more leads and closings for real estate professionals. She is a highly in-demand speaker on all things digital marketing, and has helped many clients boost their visibility and revenue. Because of her expertise in real estate, she has been a trusted speaker and contributor to such organizations as the National Association of Real Estate Brokers and Inman Connect.
In addition to running a successful marketing agency, she also has given talks, workshops, and has worked as a trusted consultant for Realtors®, title companies, investors, and top-producing agents.
She has a degree summa cum laude from the University of Southern California (USC) and is located in Las Vegas, Nevada.

Atman Real Estate

With a staff of five, Atman finds and cultivates buyer and seller leads for brokers and agents using the client’s social media, primarily Facebook and Instagram. They pre-qualify each lead to determine their needs and motivation. They then actually set the initial appointment for their client and the already-qualified lead. This saves their client a tremendous amount of time and rejection. Plus, some Realtors® do not prospect as much as they should to realize their aspirations. Atman advertises “an additional 2-4 closings per month” for its clients.
After the Atman client meets with a new lead, there might not be an immediate agency buy or sell transaction. Then Atman uses its Contact Relationship Manager (CRM) to text and email the lead up to 12 months on behalf of their client. This reminds the lead of the client’s continuing interest and support. This helps keep the lead from wandering off! (How many agents follow up as thoroughly as this? Just saying!)
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Image by Gerd Altmann from Pixabay

The messages that Atman sends to a client’s leads are customized for the client. These are not generalized and copies as some lead services do. Atman nurtures the leads for its clients. Additionally, Atman’s leads are exclusive. They accept one client per city based on a 25 mile radius, and they NEVER sell leads multiple times.

Atman’s “Unique Selling Proposition” (USP)

To be successful, an enterprise needs to adopt a Unique Selling Proposition that distinguishes and distances it from its competition. There is a lot of competition in the “lead purveyor industry!” Atman leads the pack by cultivating leads for its clients to the actual appointment, then following up for 12 months, if necessary. Find out more about Atman and their ROI guarantee here: atmanrealestate.com.
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Bruce Kellogg

Bruce Kellogg has been a Realtor® and investor for 38 years. He has transacted about 800 properties in 12 California counties. These include 1-4 units, 5+ apartments, offices, mixed-use buildings, land, lots, mobile homes, cabins, and churches. Mr. Kellogg is a contributor and copy editor for two national real estate wealth-building magazines: Realty411, and REI Wealth Monthly. He is a recipient of an Albert Nelson Marquis Lifetime Achievement Award, listed in Who’s Who in America – 2019. He is available for consulting with syndication, turnkey, joint-venture, and other property purchasers and note investors nationally, and other consulting assignments. Reach him at [email protected], or (408) 489-0131.

Realty411 VIP Membership Portal Has Launched

In an effort to save Realty411 and REI Wealth magazine readers, subscribers, and VIP monthly members money to invest more, Realty411.com has launched a special portal dedicated for this purpose. Introducing Realty411VIP.com*, a dynamic and cost-savings’ website with national and locally-featured companies. One of the unique features of this platform is that real-time savings are shown immediately, plus a toll-free concierge number is also available for assistance. Paid VIP Magazine Monthly Members can participate and search for savings with top merchant brand-names, as well as lesser-known, local retailers.
In addition, to help our real estate industry and the investor community recover after a year-long global pandemic, all readers, whether they are subscribers or not, can now save money on their travel excursions.
With Realty411VIP.com travelers can compare hotel accommodations instantly and know exactly how much money will be saved beforehand.
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Additionally, as a special incentive to investors in search of their next investment market, a special “Drop Destination” will be spotlighted each month. Realty411 and REI Wealth readers can now save as much as 50% on travel during a specific time period with each “Drop Destination” promotion. Now, there is absolutely no excuse for readers not to see their properties before investing in these important assets.
Are you looking for properties in new markets? Need to travel for a real estate conference or meeting? Ready to take the family to explore a new location?
Before booking, be sure to visit Realty411VIP.com.
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Currently, the “Drop Destination” featured is Nashville, Tennessee. If travel is booked between April 2 to April 16, 2021, members could potentially receive savings of up to 50% or more. Travel dates to Tennessee can be extended up to December 2021, be sure to log on Realty411Vip.com to compare just how much money can be saved. Another bonus of Realty411VIP.com is the special discounted admission to world-famous resorts across the nation, which undoubtedly will be one of the first leisure destinations for our readership and their families. For additional details and explore our money-saving new website, please visit Realty411VIP.com or CLICK HERE.
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Disclosure: Realty411VIP.com is a membership rewards’ site specifically for Realty411 and REI Wealth magazine. Commissions from this website will be used to continue our mission of providing complimentary real estate education to the masses. Since 2007, Realty411 has provided life-changing information and access to solid companies and educators to assist investors in making wise decisions. We have served tens of thousands of investors across the nation, and around the world, make sound real estate decisions.

Enter Realty411’s “Virtual Expo World” for Direct Access to Top Companies

The numbers are in: nearly 400 investors and real estate leaders from around the nation attended Realty411‘s first “Interactive Investor and Industry Expo”, which was held live this past weekend, Saturday, March 20th and Sunday, March 21st.

What made this weekend’s past online expo so unique is the new platform implemented, which was a first in the real estate investment community. With a joint partnership Realty411 and Silicon Valley-based eZ-Xpo completed their first joint conference utilizing this latest dynamic technology. Numerous additional online events are being planned now, investors, real estate professionals, and service providers are encouraged to register today to explore this latest event technology. Attendee Registration — Realty411’s Industry & Investor INTERACTIVE Expo (ezxpo.biz)
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Highlights of the two-day conference included 14 renowned educators sharing their expertise and secrets of success, as well as networking time with top companies in the investment industry.
The dynamic aspect of Realty411.com’s “Virtual Expo World” is the direct access registered guests have at all times to top companies ready to assist them in their real estate investment journey. Inside this new online platform, “Virtual Vendors” have already spotlighted special videos, offers, and downloads for all guests to enjoy at their leisure. Explore the “Exhibit Hall” page with amazing companies ready to assist and help meet your real estate investment goals for 2021, and beyond. Real estate investors and industry leaders are encouraged to REGISTER NOW to explore the latest technology available in online conferencing.

>>> Please view this quick intro video below before registering:

Navigating this online dynamic world is easy. Once guests enter the lobby section, they can explore different pages on the upper left-hand side, where they can navigate and explore Realty411‘s “Virtual Expo World”. Realty411 is introducing this new technology for the entire real estate community to enjoy and explore. It is complimentary, engaging, educational, and it can be explored at any time. Realty411‘s “Virtual Expo World” is continually updated with videos, offers, updates, downloads, webinars, virtual-only messages, and more. Be sure to explore our new virtual world today, and log back in on a regular basis to get the most out of Realty411‘s unique and interactive education. This new platform makes real estate investing information easy to access and review. Having direct access to top companies, ultimately saves real estate investors time and money.
Investors can rest assured when accessing this secure portal in knowing that Realty411 has worked with these sponsoring companies for many years. Since 2007, Realty411 has been assisting both new and sophisticated investors to make educated investment decisions.
Prepare for additional live meetings, events, and conferences on this new platform by registering and exploring it today. Please follow the link below.

DIRECT REGISTRATION LINK:

Attendee Registration — Realty411’s Industry & Investor INTERACTIVE Expo (ezxpo.biz)

Watch this video to see how this new platform works.

3 Ways Mortgage Loan Officers Can Grow Leads Without Spending Money on Ads

By Luke Shankula

The coronavirus pandemic has affected virtually every aspect of our daily lives, from schooling to socializing to business. Since lockdowns commenced nearly a year ago, I’ve had mortgage loan officers, long accustomed to building relationships and generating leads through in-person networking, asking me how they can generate new business.

Sure, spending money on advertising is one strategy. But in a brave new world where people are spending huge amounts of time online, my advice to loan officers is this: go social like you mean it. These are my top three ways that loan officers can grow leads organically—that is, without spending a dime.
  • Be strategic with social media engagement.
  • Create quality content that people want to consume.
  • Present yourself in a genuine manner—i.e., be the “real you.”

Choose your platforms strategically

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Image by nominalize from Pixabay

Unless you’ve got a monstrous amount of time to devote to social media or the budget to pay someone else to do it for you, it’s difficult to have a huge presence across several different platforms. Instead, I tell my clients to choose one, two, maybe three social media platforms, and get really good at using those. This comes down to researching which audiences you’ll reach on different platforms and honing in on those that can be the most fruitful. Here are just two examples of how I tell clients to use the many platforms out there:
  • LinkedIn: While LinkedIn isn’t exclusively a B2B platform, it is the place where you’re more likely to network with referral partners, such as real estate agents and other loan officers. It’s a great place for work-related content, but posting links to shared content will actually reduce your engagement here, since LinkedIn (and Facebook) wants to keep people in the site. Instead, create short, original posts that talk about your business. This doesn’t have to be “hard sell” stuff. Try posting video or screenshot testimonials from happy clients, or you celebrating closing a loan in record time. This is called “social proof”—it’s what establishes you as a leader in your field and attracts potential colleagues and referral partners. Also, be sure to congratulate colleagues who post about promotions or job change. But go beyond a simple “Well done!” with substantive, sincere praise. “Congratulations Jan! I’ve been following your career since we worked together at ___, and it’s no surprise you’ve been so successful.”
  • Facebook: If LinkedIn is your office, Facebook is your living room. Use your personal Facebook page—yep, that’s right; your personal page, as it’s amazingly difficult to generate organic traffic on a business page—to share your original content on mortgage news, career wins and challenges. Intersperse these with normal Facebook stuff, whether it’s family photos or funny animal videos. When you sprinkle in the work-related posts, always think about engagement: “The Fed is threatening to raise interest rates again: do you think it’s too soon for another rate hike?” Make your non-personal posts public so that they can be shared with anyone. Accept friend requests that don’t seem sketchy or stalkerish. And engage, engage, engage.

Create quality content

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Image by Gerd Altmann from Pixabay

I say it all the time and I’ll never stop saying it. When it comes to growing organic leads, it’s about quality, not quantity. Posting 60 pieces of shared content a day, regardless of the platform, is going to turn people off and make them reach for the dreaded “mute” button—and it might also get you flagged as a spammer. Instead, post original, quality, shareable content that people can use. Here are just a few ideas:
  • A short video (60-120 seconds is ideal) of you explaining how the mortgage pre-approval process works, or telling folks how they can improve their credit score
  • An attractive infographic showing the steps from loan application to closing
Remember, most first-time buyers—and a lot of second- or third-time buyers—have no clue how this stuff works. By creating content that explains the process, you establish yourself as an expert. Just don’t forget to add links to your email address and business website!

Just do you

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Image by mohamed Hassan from Pixabay

They say that all business is personal, and that’s truer now than ever before. There might have been a time when prospective loan applicants could choose from just a handful of loan officers. Now, there are more than 300,000 loan officers in the US, most of them reachable with the click of a mouse. So how do you stand out in a crowded field? Just by being you—and social media is the place to do it.
  • Be genuine. Share your kid’s stellar report card and your spouse’s new promotion just as readily as you do mortgage industry news. You’re a lot more than just your job, and your clients want to know that.
  • Engage actively, but naturally. Make a concerted effort to share and comment more on social, but don’t fake it. If you’re interested in a topic, try to generate lively discussion around it. If you’re happy for a friend or colleague’s positive news—express it!
  • I tell my colleagues to be themselves online and in-person, with one caveat: stay as apolitical as possible. Mortgage loans aren’t red or blue!
Building a social media presence that generates organic leads won’t happen overnight. It takes months, if not years, to create and curate quality content, build your followings and raise your profile. But when it all starts to click, it’s some of the most rewarding business you can land—and not just because it’s free. For loan officers, marketing and lead generation through social media enables you to really create a trusted brand. And the satisfaction of knowing you did it yourself, using your own initiative, creativity, and industry knowledge? That’s priceless.

How This Powerhouse Woman Created an 8-figure Real Estate Business and How You Can, Too

By Victoria Kennedy

I am no stranger to the determination it takes to grow a real estate business. As a teacher turned Realtor®, I knew from the very beginning that I had to forge my own path.

When I first obtained my license in 2001, I was brand new to the industry with no one to show me the ropes. It was a time of unpredictable growth in northern California’s market, but with a little hard work and a lot of passion, I learned the ins and outs of the industry. I have faced numerous challenges throughout my years as an agent, including recessions that affected not just me, but the entire nation. As many agents were exasperated with endless foreclosures and short sales, I decided to do something about it and obtained my Certified Distressed Property Expert in order to better serve my client’s needs as I continued to grow my business to the empire it is today, selling an average of 100 plus homes a year with a career total of more than 2,200.
It all goes to show that in this industry, you have to be willing to adapt, have an exceptional work ethic, a knack for marketing and a devotion to your clients. The educator still in me from the years I spent as a third-grade teacher drives my desire to teach others, and I have decided to combine my two passions to educate other realtors how they, too, can grow their real estate business to 8-figures.

Keep learning.

Even if you have been in the business for years, there is always something learn from other real estate agents, articles or even seminars. None of us should ever be too proud to continue broadening our minds as a way to better help the people who are entrusting us with one of the biggest decisions of their life: selling or buying their home.
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Image by Gerd Altmann from Pixabay

I realize my background in education makes me a bit more passionate about learning than the typical Realtor®, but it is a tool that has served me well. I have been able to hone my marketing skills, learn more about the tools available to me, discovered the ins and outs of the real estate market and how to best connect with others.

Understand marketing.

Marketing is the key to success for any industry, but it is such an important component to real estate. It is the way we generate solid leads that turn to business. Of course, social media and online marketing has become the driving force behind much of today’s marketing. Did you know 99 percent of millennials begin their home search online? Think of the multitude of customers you are missing by not taking advantage of social media platforms.
Any Realtor® needs to have a concrete marketing plan in place. A Google My Business listing is a must. This is the sidebar that appears on the page when you Google a business or service. How are the thousands searching for agents in your area going to know you exist if they can’t see you on the biggest search engine available?
From Facebook to Instagram to LinkedIn, there are a number of platforms out there ready to help you expand your business. You just have to do your research to determine which fits your company the best, or if it is a combination of several. Facebook continues to be the most used by agents as its demographics tend to represent the target audience for many agents across the country.
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Image by Pixelkult from Pixabay

Instagram is on the rise as one of the best ways to reach potential clients as stunning home photos can capture a wide audience. LinkedIn might not be the best use of your time for finding potential home buyers or sellers, but it is a great way to connect with other agents.
Make sure to use local hashtags with your industry to help reach people in your area looking to purchase their next home.
Another part of marketing is to never underestimate the little things, such as staging and a professional photographer – particularly on platforms like Instagram where a visual representation is everything. Videographers and done photographers also make for great additions to your real estate team. Don’t forget to combine your social media marketing with a mixture of local resources, such as your community newspaper or area billboard companies.

Engage the audience.

While picturesque photos and informational posts are great tools, I have discovered videos are crucial to engaging the audience. Video posts are 12 times more likely to be shared than those without. When you share a video, people are connecting with you. They are getting to know your voice, your face, and what you stand for. You can establish yourself as a professional as you interact with the audience on a wide variety of real estate topics, from tips on purchasing a home to the latest trends in countertops to the hottest neighborhoods in the area.
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Image by StockSnap from Pixabay

The more videos you publish, the bigger your audience will become. When one of those viewers is ready to buy their home, they are going to want the professional they have come to know and trust to walk them through the process.

Build relationships.

Many agents are so focused on new clients, they underestimate the power of keeping existing ones. It costs a Realtor® a whopping seven times more to land a new client than it does to keep one who previously bought or sold a home with them. Do you know how you keep those customers and increase your profits from a possible 25 to 100 percent? By building relationships.
It does not matter if your customer is buying a $200,000 home or a $1 million dollar home. That couple searching for their starter home might have built an incredible life that affords them a luxury home in a few years. You just never know. By treating everyone with kindness and respect, you will be treated the same in return. Another way to develop relationships is through making connections in your community. This is another way social media comes in handy. Search for businesses, nonprofits and groups in the area. Make sure to follow them and engage in their posts by liking and commenting.
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Image by Werner Moser from Pixabay

Agents often overlook the importance of helping out the community. Doing so is a great way to portray the integrity you want to run your business with while creating trust. For example, education remains dear to my heart, so I enjoy being involved with programs and scholarships at the local schools. Find what your passion is and help out your community. Continuing to always expand upon your skills while creating a network in the community around you will always be a step in the right direction. However, if you find yourself ready to grow your digital footprint and become an authority in your industry, we host monthly Accelerator programs for FREE to help you take your business to new heights.
Krista Mashore has an exclusive coaching program that teaches professionals how to become the go-to authority in their communities. She has spoken on the Inman stage and has been featured in Yahoo Finance, Wall Street Journal, Authority Magazine among other publications and has been a guest at numerous podcasts including Conscious Millionaire. Click here (https://kristamashore.com/2DaysLive) to join the 2-day Live Coaching Event with Krista and transform your Real Estate Business. Learn more from Krista at her next event, HOW TO CLOSE 100+ HOMES A YEAR (kristamashore.com), March 23-24.

Discover Real Estate Investing with a NEW Technology and INTERACTIVE Platform

Learn about Realty411’s INTERACTIVE Investor & Industry Expo – March 20th and 21st, beginning at 8:30 AM PT.

This UNIQUE and INTERACTIVE online event will provide real estate investors, brokers / agents / lenders, entrepreneurs and service professionals a new, tech-driven way of connecting within Realty411.com’s “Virtual World”.

WATCH THIS VIDEO:
https://www.youtube.com/watch?v=t4Whl82NHk4

THEN RSVP TODAY AT:
https://ezxpo.biz/realty411expo/attendee_register

PLAN YOUR WEEKEND, VIEW OUR AGENDA:
https://ezxpo.biz/realty411expo/events

Realty411’s Virtual Expo Network will include the following game-changing features:

(1) Virtual Lobby Session Tracks
(2) Forum for ongoing discussion before, during and after
(3) Chat (Group, Private, Video and AI-Chatbot)
(4) Multiple Webinars to Enjoy, Plus LIVE Streaming by Session Tracks
(5) Social Live – Facebook Live, YouTube Live, Periscope Live, etc.
(6) Marketing Analytics for the Best Qualified Leads
(7) Private Expo Network Exchange to Connect Multiple Virtual Expos for Maximum Networking

Be sure to explore this amazing new platform and technology.

After registration, guests can explore the platform and get ready to CONNECT LIVE and in real time with amazing experts on March 20th and 21st beginning at 8:30 am:

https://ezxpo.biz/realty411expo/attendee_register

Not a fan of virtual networking? Prepare to visit Southern California on August 28th, 2021, for our Los Angeles GRAND Real Estate Expo being held at UCLA (University of California, Los Angeles).

This event is produced with LAREIC and Sam’s Real Estate Club of Los Angeles. Our last LA Grand Expo in 2019 attracted over 800 guests. Additional details will be shared soon, please mark your calendar.


Since 2007, Realty411.com has assisted top companies expand their visibility and grow their business, contact us for a complimentary marketing session. Investors, do you have questions about real estate or need capital for your deals? CALL US @ 805.693.1497.

How the Opening Back up of the Economy should affect Private Lending

Image by Gerd Altmann from Pixabay

By Edward Brown

When the COVID-19 pandemic first hit the United States in March 2020, it was anybody’s guess as to how the private lending market would be affected. At first glance, one would presume that loan demand would have been negatively affected due to the expectation that borrowers were going to “hunker down” and not ask for, nor spend money, as we, as a nation, even the world, had not experienced a shutdown of this magnitude since the pandemic during WWI.

In the early stages of this effectual shutdown of most of the economy, this was the case. Borrowers were reluctant to take on debt, as the future was uncertain as to how they expected to pay back loans. However, as time went on, even though most businesses saw a large decrease in revenue, the lockdown/shelter in place, had another affect; many people were frustrated, feeling cramped where they lived, as a large part of the workforce had to work at home, and many households were not prepared to be at home 24/7. This put an undue hardship, emotionally, on people, as they tried to balance work with home life; especially if they had younger children who were not able to go to school.
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Image by Alexandra_Koch from Pixabay

Since many businesses were closed, people were able to save money, as they had no place to spend it, so to speak. This lent itself to the thinking that this was the new norm – working from home. This thinking made people start to ponder the future regarding the work/home life balance, and many chose to increase their living space. This, culminating with the fact of no commute for most workers, produced increased prices of homes in the suburbs where one could buy a larger house than in metropolitan cities. The frenzy that ensued for house purchases was a boon for private lending, as, not only were banks a bit gun shy due to the pandemic, but buyers were facing competition from other buyers and needed a competitive edge – quick closing offers. These two factors [banks slowing down on lending and the ability to provide capital very quickly], saw many private lenders having their best deal flow, by volume, in decades.
The question, for private lenders, is what happens after the economy eventually loosens up restrictions for most businesses, so they can get back to a somewhat normal cycle? There are those who believe that working from home will be the new norm for many workers.
The thought process is that companies that have been use to having workers work from home have proven that they can be productive over this past year. These same companies looking to cut costs will point to believing that they can shave off a lot of fat off of their income statement by lowering a large part of their expenses – rent. Since workers do not need to come into the office, and, with the technology of Zoom, rent expense can be significantly eliminated.
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Image by Joshua Miranda from Pixabay

Case in point; SF Gate reported that Sales Force cut back 325,000 square feet of space it was planning on occupying in San Francisco after adopting a permanent remote work policy. Many companies have followed such as Drobox, Twitter, and Facebook. Rents in the surrounding areas have decreased as much as 20%; however, prices for homes have not seen such a decrease, and, homes that have more square footage command a premium.
However, there is the possibility that, once a vaccine is widespread and we have moved on from the pandemic, many companies will start to require workers report back to the office. Some companies are already requiring employees go back to working in the office, as they believe productivity will increase compared to at home workers. This may start to force a shift of people moving back to the city from the suburbs.
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Image by hakan german from Pixabay

Interest rates are still relatively low, but they are starting to creep up. Many home buyers believe they should find something soon before the rates for mortgages go higher. The demand for capital is still strong and it does not appear that it will taper off anytime soon. Banks still have strict criteria regarding lending standards, and recent changes in the Dodd Frank rules did not dimmish these standards. In addition, borrowers who requested deferments from their lender may not have had their credit scores lowered due to these requests, but a memo recorded in the credit report has effectively prohibited conventional financing for them; at least, for a while. Other reasons many believe demand for housing will continue is due to a housing shortage. Too many restrictions by city or county officials hamper housing starts, and costs of both material and labor have dramatically increased. This put an undue burden on builders, as their profit margin gets squeezed; thus, the law of supply and demand as well as low interest rates [that appear to be relatively stable] should keep housing prices strong. During the Great Recession, many homeowners lost their houses to foreclosure. Many Millennials remember how their parents lost their home, and this lent itself to many people choosing to rent instead of purchase. Over time, however, these [now grownups] are starting their own families and have healed from the wounds of the Great Recession to where they are deciding it is better to buy rather than rent. This, too, is expected to fuel higher housing prices.

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Many housing sectors are still seeing multiple offers or houses that are being sold in less than a week. This phenomenon puts the would-be buyers in a predicament as to how to put in an offer that will be accepted to a seller. This is where private capital is a huge asset to potential buyers, as they can use private capital to make their offer much more attractive to the seller in that they can close the transaction very quickly without contingencies. Mark Hanf, president of Pacific Private Money has seen these buyers come to him in droves for capital and reports that his company had its best quarter in the last quarter of 2020.
One of the main advantages to private capital markets is that they do not have to rely on asking for new appraisals in every situation. Each case is different, and, many times, a recent appraisal that the borrower provides to the lender or a broker price opinion might suffice. Banks need to follow FIREA guidelines where the appraisal process is much longer, and this lends itself to a lengthy process to which the borrower may not have the luxury of waiting.
How long will the demand for private capital last? As long as banks continue to drag out the lending process, demand for housing stays consistent, and borrowers desire to purchase before interest rates and housing prices increase beyond where the borrowers feel comfortable, there should be a steady flow of requests for the foreseeable future.

ABOUT EDWARD BROWN

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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. Additionally, 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. Edward Brown, Host The Best of Investing on KTRB 860AM The Answer on Saturdays at 8pm and Sports Econ 101 on Saturdays at 1pm on SiriusXM channel 217 21 Pepper Way San Rafael, CA 94901 [email protected]

COVID1Stop Solution

By Leon McKenzie

A new solution is now available for those of you that want to have your Covid information at your fingertips.

Unlike the Airline Passport apps that are now appearing, this solution saves your Test/Vaccination information in your own ultra secure digital vault. Based on bank level security standards this solution prevents anyone other than you from accessing your information.
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This approach solves the oft quoted concern of who has access to my data – YOU DO! Saving your information is as easy as taking a picture and retrieving it can be done with a single swipe. Want to show your Covid status – now it is so easy. This app has been designed to be used by everyone – the App is FREE and there is but a nominal cost to add Test/Vaccination information. Want to manage your family’s information – simply use the Family option provided. Take charge of your Covid information – always have it available.
About All Life Transitions, LLC is a nationally branded company providing services and solutions to individuals involved in a Life Transition. Our COVID1Stop solution allows you to record your Covid journey. Since the start of the pandemic, AllLT has been working to provide solutions that will help those impacted by the most significant Life Transition any of us will experience.

COVID3Step Program

By Leon McKenzie

We all know that the Covid-19 Vaccination process is confusing. Getting on a Waitlist seems to be the answer. But there really is more to it. Is the center nearest you the best place to go? Are they in the queue to get new doses? Which waitlists are supported by this center? What do you do once you are on a waitlist?

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So many of us need help – fortunately there are folks that can provide that help. The COVID3Step solution identifies those folks and provides you answers. You simply state your zip code and the COVID3Step team rolls into action to identify the closest centers as well as dosages last received and risk categories & waitlists serviced. If you need additional help just ask. This is a FREE service staffed by volunteers that want to make a difference. ANYONE THAT WANTS A VACCINATION SHOULD BE ABLE TO GET ONE LET THE COVID3Step TEAM HELP! If you want to Volunteer – there is always a place for you.
All Life Transitions, LLC is a nationally branded company providing services and solutions to individuals involved in a Life Transition. Their COVID3Step solution brings help to anyone trying to understand the Covid-19 Vaccination process. Since the start of the pandemic, AllLT has been working to provide solutions that will help those impacted by the most significant Life Transition any of us will experience.