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Prepare for the Coming Greed Pandemic

Protecting Your Assets Is MORE Relevant Post-COVID-19

By Randy Hughes

If you wondered about your need for privacy and asset protection before the Pandemic, it will be critical for you and real estate investors like you post-Pandemic.

gdpr-4095257_1280The effects of the epidemic will be felt for years, not only financially but legally. If you have put off creating an asset protection plan, now would be a great time to start.

We have long known, as real estate investors, we are more inclined to be sued than most other occupations. Why? Because the average American assumes that ALL real estate investors are RICH! Therefore, we are good targets for frivolous lawsuits.

People with cash in the bank and no hard assets are not good targets for lawsuits because, unlike real estate, cash can disappear quickly . . . and buildings cannot. Furthermore, unlike deeds and liens, bank account balances are not available through public records.

Until you have been pursued by a contingency fee lawyer (and his or her deadbeat client), you might not feel the need to protect your assets. But, if you are going to stay in this game long-term, it is just a matter of time before the wolves will be at your door.

moon-4908100_1280The paradox of our careers is the more successful we become, the more of a “target” we are for the nefarious characters in our society. These characters do not want to work hard (like us) to become wealthy. They prefer the “easy route” via our dubious legal system.

I spoke 33 times last year to real estate investment groups around the nation. I stressed the need to get titles to real estate out of personal names and into Land Trusts for privacy, asset protection, and estate planning purposes.

In almost every gathering, someone asked the question, “Why do I need to protect my assets, won’t insurance take care of any claims?” My standard response was, “I believe in insurance and think you should buy all you can stand, but DO NOT RELY ON IT EXCLUSIVELY!

Insurance should be only one-leg of your asset protection stool. Why? Let me give you a recent example!

When the pandemic first arrived in America and almost every business was shut down, I called my neighborly insurance agent. Here is how our conversation went: “Hi Bob, I am calling because after 40+ years of paying you a premium for “business interruption” insurance, I need to make a claim.” Bob responded, “Sorry, but pandemics are excluded!” My response was, “Really? Forty years of premiums and now I AM NOT COVERED?

It is folly to rely solely on insurance to protect you when you need it the most.

As an aside, please read your policies. You will find LOTS of exclusions and often you are not even covered for “defense costs.” In other words, you can go broke just defending yourself (read: legal fees) from a legal challenge in which you are totally innocent.

lawyer-3268430_1280What is a real estate investor’s first line of defense? DO NOT OWN PROPERTY IN YOUR NAME! I have been preaching this to my fellow real estate investors for more than 40 years. I have been a full-time real estate investor for 50 years, and early in my career I discovered the benefits of using a Trust to hold title to my investments. I have written about the benefits extensively in this publication and many others.

Some people “get it” and many do not. They live in a dream world assuming that THEY will somehow be spared the sorrow and expense of a frivolous lawsuit (or worse yet, an attack by an irate tenant on them or their family at their personal residence). Consequently, they risk years of hard work and their family’s safety and financial security because they are too lazy to fill out a few papers.

I can lead a horse to water, but . . .

What is YOUR net worth, worth? Is it worthy of protection? How much of a price have you paid for it in sweat and tears? Are your family’s safety and security important to you? Perhaps you spend hours each week watching sports? Would it make sense to spend a little bit of your valuable time learning how to create a trust to hold title to your investments? The answer is obvious, you just need to do it and DO IT NOW!

output-5045168_1280What does this rant have to do with the pandemic? Plenty. Contingency lawyers and their deadbeat clients will be developing new and creative ways to find someone to sue because of the virus and its effects on tenants, businesses, and anyone with assets they covet.

If you can believe there are elements of our society that will walk in front of a car to eventually receive a “paycheck,” then you can also believe that it is time for YOU to get OFF the title of all of your real estate investments (and NEVER buy property in your name again!). Use a trust, you will be glad you did!

Several times a year I hear from people who have heard me speak or students who did not act on what they learned from me. They tell me they failed to take my recommendation, and now they regret it.

Don’t be one of those people.


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Randy Hughes, Mr. Land Trust

I encourage you to learn more by going to my FREE online training at www.landtrustwebinar.com/411 and text “reasons” to 206-203-2005 for my free booklet, Reasons to Use a Land Trust. You can also reach me the old-fashioned way by calling me at 217-355-1281. (I actually answer my own phone unlike most other businesses in America today!)

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How to THRIVE in Real Estate in the Time of the CORONAVIRUS (Part 2)

By Victoria Kennedy, CEO of Atlas Real Estate

Coronavirus Action Steps:

1) OVER COMMUNICATE WITH CLIENTS

contact-us-4193523_1280(Do not wait and put this off… if they reach out to you, it is too late.)

  • If you have less than 20 clients, call them individually and check in with how they are doing and how their family is. If you have more than 20 clients, send out an email blast with a video encouraging them and coming from a place of support as well as authority. Your clients are relying on you to be the calm in the storm.
  • Let them know which SOLUTIONS you are coming up with to serve them during this time.
  • EDUCATE them on how interest rates have never been lower and now is the BEST time to buy a home.

2) CREATE RESOURCES FOR YOUR CLIENTS

  • E-mail them personalized videos on the current state of the market in your community.
  • Instead of meeting clients for coffee, meet them over a video Zoom call and them mail them a $10 Starbucks gift card!
  • Conduct open houses via live stream and make it an event! You can have buyers join in, comment, like, and ask you questions about the home.
  • Send a bottle of hand sanitizer as a little ‘thank-you’ gift to your clients; it will give them a chuckle and will make you instantly memorable.

3) TIME TO GO ON THE OFFENSE

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  • If you haven’t started running paid ads to get appointments with potential clients, NOW is the time (Ads are going to be on sale… take advantage!)
  • If you aren’t shifting your marketing message around everything going on and are running the same cold email campaigns/ads/DM messages, shift them to align with the conversation going on.
  • Build a brand new offer that helps local businesses around everything happening and push it hard! We at Atlas Real Estate have already created brand new campaigns addressing this situation and we are offering engagement campaigns for our agents to establish YOU as the authority and expert in your community.
  • Most importantly, NOW IS THE TIME to step up as a Realtor and INNOVATE your product/service so that it is a SOLUTION to all of the problems your clients are facing.

I know that’s a TON of info and there’s so much more…

So if you want help executing on all of the above, we have the resources available for you to:

  • Establish yourself as the expert and authority in your community
  • Be the voice of calm and assurance to the buyers that need to hear your message the most
  • Get your current clients to stay and recommend you to their family and friends by staying top of mind and relevant
  • How to reach out and ease your current and past clients on why now is the best time to buy
  • Stay ahead of the curve by doing live streamed open houses and online meetups

adult-blur-boss-business-288477And don’t forget…

Chaos = Opportunity (for those who provide solutions + clarity).

Some Realtors will NOT have solutions.

Some Realtors will NOT have clarity.

And they will fall.

But for the select few, who act now.

Who seek clarity.

Who create solutions.

You will end up growing massively.

Buyers need assurance and a leader in their community more than ever.

They are just as nervous about this situation as you, and they need your help.

It is your time to step up as a Realtor.

It is time for you to step up as a leader.

It is your time to dominate.

You’ve got this.

Reach out to us if you are ready to dominate and THRIVE in your real estate business this 2020.


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Victoria Kennedy

CEO of Atlas Real Estate

victoria@goatlasdigital.com 

(561) 529-9077

www.goatlasrealestate.com

Nominated as a 2020 Brand Ambassador for Inman, Victoria Kennedy is a well-respected authority in Real Estate marketing. She is the CEO of Atlas 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, Inman News, and Yahoo Finance.

In addition to running a successful marketing agency, she also has given talks, workshops, and has worked as a trusted consultant for Realties, Title Companies, Investors, and top producing agents. She has been featured in over 175 publications and podcasts both nationally and internationally.

In addition to her marketing expertise, Victoria is a #1 selling classical-crossover singer and has sung with the likes of Andrea Bocelli, as well as toured all over Europe with her music.

She is excited to share with you the power of her Closing Maximization Method and how it can exponentially grow your business.

Find out more here: goatlasrealestate.com


Atlas Real Estate

Here at Atlas Real Estate, we are all about connecting motivated buyers and sellers to top producing agents nationwide.

We guarantee you will get a set amount of exclusive leads a month coming out of your personal Facebook page to brand you as the agent or your money back.

We will call, text, and email every lead for you and connect you with serious buyers and sellers. We will continue to nurture each lead for up to 12 months so whenever they are ready to buy or sell, you are the agent they call.

We will qualify all your leads and set appointments for you so all you have to do is show up to meetings with serious buyers and sellers. We will provide you with proven scripts and sales techniques so you can close more leads and exponentially grow your business.

Give us a call today to get the EXACT marketing strategy that is bringing our Realtors an additional 2-4 closings a month!

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How to THRIVE in Real Estate in the Time of the CORONAVIRUS (Part 1)

By Victoria Kennedy, CEO of Atlas Real Estate

In times of uncertainty, the person who brings the most clarity adds the most value. I know you’re getting the questions about the coronavirus and what I wanted to do today is share with you some talking points that you can share with your clients that’ll help you be the calm in the storm.

We are going to give you a list of the top 5 things you need to know in order to not only make it through this pandemic, but to thrive.

During this time of global panic and fear, we are faced with a very important choice.

covid-19-5065427 smalla) We can all choose to give in to the fear, panic, and stress. To pull away and give up. To act irrationally and out of emotion.

Or on the other hand…

b) we can all choose to come together. To build community. To create. To innovate and come up with amazing solutions. To educate ourselves and become informed. To use this as an opportunity for us all to grow not only in business but also as human beings and as a greater collective.


We hope this guide will help you to be seen as the expert in your community and to bring goodwill and calm amongst your friends and family.

Now is the very best time to buy a home, and we are actively working to make sure that our agents are best positioned in their market to speak to the buyers who need to hear it the most.

We are so proud to establish Atlas Real Estate as the brand that agents can trust and rely on in times of uncertainty. We are here to provide the very best service for our agents as we come from a place of service, love, and dedication to our clients and our community.

Thank you to all our past, present, and future agents for being a part of that vision. ̟

Let’s get this!!!

The Top 5 Things to Do in Order to Thrive in Real Estate in the Time of the Coronavirus

colorful-4043715_12801. GO ALL IN

Many agents ask us about the pandemic and advertising. Should they hold o until the economy stabilizes? Sadly, most agents are just sitting around hoarding their money like it’s toilet paper. Do you know what the agents who will not only survive but THRIVE in this time do? You guessed it. They GO ALL IN.

Why do this?

The biggest reason is everyone else is turning o ads or scaling back. That means, you have the means to corner the market, with higher visibility and drastically lower cost per acquisition.

Also, more people will be home, bored, and surfing social media for hours on end. Whose ads are they going to see? Not your scared competitors who are “waiting for the storm to pass.” No. They are seeing YOUR ads. You are the agent they call.

This is the best time to EVER be running ads. People are home from work and glued to their phones. Easily closed deals are happening all day long.

2. Be the Authority

tie-690084_1280If we look back to the time in 2000 when we had the dot com boom and bust, that was really the catalyst of the rotation of money coming out of the stock market and into real estate. That’s what led to the boom that we saw. This is the time where the agent who adds the most value really has a unique opportunity. You see, when we have chaos and when you bring clarity, you have the opportunity to set the table for gaining market share, for gaining the trust of your clients, and moving from a place where people know and like you to them actually trusting you.

3. See the Economy as Working FOR Your Buyers

When we look at volatility in the stock market, typically what happens is, we see an Exodus of money coming out of the stock market. People just get tired of riding the rollercoaster. When that happens, then we’ll see that money rotate somewhere. Money doesn’t typically sit on the sidelines long. It wants to look for yield. It wants to look for opportunity. Historically, that money has moved into hard assets.

One of the biggest hard asset classes is real estate. So it would make sense that when we’re looking at this, as the money rotates out of the stock market, that money will be looking for yield in real estate. Bringing real estate in more demand. We’ve already got a market that has strong demand. It could be now we get gas on the re that we already have.

4. Leverage these Historically Low Interest Rates

We have historically low interest rates. I have no doubt in my mind that there will be some point in the next ve years where people will look back and say, “I cannot believe that I could’ve gotten a 30 year xed rate mortgage at this time in the 2%+ range!” It’s unbelievable to think how cheap money is right now. Now, if we were in a situation where everything was normal and we had these rates, it would be a boom for real estate. If you add in the fact that we’ve got these interest rates where they are, and we also have money rotating out of the stock market, that means that right now this is a recipe for a boom and for us to see some growth in our real estate market.

5. The Stimulus Package

dollar-1443244_1280The federal government just approved 2.5 billion dollars’ worth of a stimulus package. Now the stimulus package money typically takes time for it to really leak out into the economy, typically in the six month time period. So what does this mean? This means by summer the money will begin to stimulate the economy in full effect, just in time for the summer boom for real estate. Right now is an opportunity for us to add value to our clients by being that person that brings facts to the table, not just hearsay, that person that looks on the long term benefits for their clients, not just the short term. You see, when you add value to your clients, those relationships grow deeper and your business begins to build. This is a unique opportunity.

Are we concerned about these things? We’re concerned and we’re being diligent, but we’re not fearful. You see, when we look at what’s to come into the near future in the real estate market, and especially looking at how all of this will play out over the next three to five years, we can really set the table for a really good time in the market. Once we walk through what we’re walking through right now, I hope this gives you the opportunity to share some things with your clients that helps you grow your business.

If you’re at a place where you’re looking for the opportunity to grow your business, please don’t hesitate to reach out. We’d love to help take care of you and your business.


Atlas -Victoria_Kennedy small

Victoria Kennedy

CEO of Atlas Real Estate

victoria@goatlasdigital.com

(561) 529-9077

www.goatlasrealestate.com

Nominated as a 2020 Brand Ambassador for Inman, Victoria Kennedy is a well-respected authority in Real Estate marketing. She is the CEO of Atlas 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, Inman News, and Yahoo Finance.

In addition to running a successful marketing agency, she also has given talks, workshops, and has worked as a trusted consultant for Realties, Title Companies, Investors, and top producing agents. She has been featured in over 175 publications and podcasts both nationally and internationally.

In addition to her marketing expertise, Victoria is a #1 selling classical-crossover singer and has sung with the likes of Andrea Bocelli, as well as toured all over Europe with her music.

She is excited to share with you the power of her Closing Maximization Method and how it can exponentially grow your business.

Find out more here: goatlasrealestate.com


Atlas Real Estate

Here at Atlas Real Estate, we are all about connecting motivated buyers and sellers to top producing agents nationwide.

We guarantee you will get a set amount of exclusive leads a month coming out of your personal Facebook page to brand you as the agent or your money back.

We will call, text, and email every lead for you and connect you with serious buyers and sellers. We will continue to nurture each lead for up to 12 months so whenever they are ready to buy or sell, you are the agent they call.

We will qualify all your leads and set appointments for you so all you have to do is show up to meetings with serious buyers and sellers. We will provide you with proven scripts and sales techniques so you can close more leads and exponentially grow your business.

Give us a call today to get the EXACT marketing strategy that is bringing our Realtors an additional 2-4 closings a month!

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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.

Remote Working

Remote Working Trend to Grow Further After COVID-19

By David Mashian

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As we deal with the COVID-19 pandemic remote working is one of the new trends that has been ignited, and it looks like it will be here to stay after this crisis passes. Working remote is the new normal, as far as this quarantine period goes, and it will be a new work option offered employees going forward. In fact, Indeed, the online job board, has created a remote working category for employers and job seekers alike. Companies seeking to tightly manage costs are realizing the cost benefits of a remote workforce, and the trend looks likely that past on-site employees will be shifted to permanent remote positions.

An unexpected consequence is that some of this remote work will be shifted out of state or offshore, where labor is cheaper. A business owner I know was resisting putting his employees to remote work positions, but soon realized that he can also shift a lot of his expensive domestic labor abroad and save costs. Unfortunately, this will have a negative impact for local or domestic jobs.

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On a positive note, people having to live in expensive parts of the country will be able to move elsewhere, save costs, improve their quality of life and keep their job. The Location Premium that employees pay, such as people who work in Silicon Valley tech jobs to be in Silicon Valley, will be mitigated by employees who work remote. In fact, this bodes well for an improvement in quality of life for many people who choose to work remote or go out of state to cheaper areas of the country. Similarly, this will help lessen crowding and traffic in big cities.

Doing meetings virtually has gone up dramatically, and companies like ZOOM, GoToMeeting and others are taking off. Even Google added virtual meetings to its suite of services. I am hearing that busy executives like these online meetings because it saves them time travelling by plane or car, and that they get more done as a result of the time savings. My executive friends say that once their lease on their office ends, they will not be renewing their lease having tasted the benefits of working remote. They like the savings of rent, parking, gas and time.

IMPACT ON REAL ESTATE

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Given the increase of remote working, it is easy to conceive that many companies will start to reduce their office space after COVID-19, so office properties will be directly impacted. I personally have seen tenants moving out of their offices during this pandemic. The flip side to this is that many remote workers will likely want to have flexibility for a workspace of their own, other than their home, so executive office companies should benefit. Companies as We Work, Regus and others will likely be able to take advantage of this shift in the marketplace by getting better locations, and lower pricing. Other contenders include incubator spaces for business and technology startups. Similarly, office property owners will need to rethink what amenities they offer to attract and keep tenants, such as dining, coffee shop, gym, shared space, outdoor meeting space, or even convert buildings to mixed use.

Bottom line, in this crisis, opportunity also looms, and the old players and roles will shift. Accepting the situation and adapting to it by implementing creative vision will bring wealth and success to those who take the risk.


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David Mashian

David Mashian is the founder and CEO for MoneyMac Loans. David started MoneyMac because he personally experienced and realized that small businesses and entrepreneurs could not qualify for loans under the traditional bank lending standards. MoneyMac is a nationwide lender dedicated to providing investment real estate loans for residential 1-4, multi-family, mixed-use and commercial properties. David provides asset-based investment property loans give financing for tough to qualify borrowers, including W-2 employees, self-employed entrepreneurs and small business owners. MoneyMac focuses on the property’s value and the borrower’s credit, without using bank statements or tax returns.

David is a proven real estate industry leader, who has helped many companies transform their business goals to reality. He has a high degree of real estate experience and expertise spanning from real estate finance, brokerage, sales, leasing, brokerage management, and franchising of real estate brokerage companies. Using his wide base of connections to brokers, investors and industry leaders, David has put together many deals for joint ventures, debt & equity raises, acquisitions, and real estate sales. David graduated from the University of California, Los Angeles, and teaches Real Estate Principles at the University of California, Irvine.

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Getting Prepared for After COVID-19

By David Mashian

Thankfully, we now see a light at the end of this tunnel. We all have been self-quarantining, and are eager to get back to “normal” life. It will be a new normal, and things will not be where you left them before the quarantine. Even now the people in China are cautiously and slowly peeking their heads out of their homes to see if all is OK, so there will be an adjustment period for us as well.

If you are in the sales business, like I am, we need to get tooled up to get back into action and start SELLING! You are going to Create or Find New Opportunity. This situation is an opportunity. Things change, they always change, and it is best to accept and adapt. Interestingly, in Chinese, the word for “Problem” and “Opportunity” are the same word. So, this is a new opportunity, and a possibility for a better life and a better you.

WHAT TO DO?

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1) Make a TO DO list for today, and at the end of the day, make a list for the next day.

2) What should be on this list? Sales Activity is #1 – We are going to make and / or find opportunities.

WHO TO MARKET TO?

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1) People you already know and have a relationship with. DON’T PRE-JUDGE – JUST CALL!

2) Call people in your cell phone contacts. Get personal with your calls to create the opportunity. People have time on their hands and are receptive.

a. Call people you have done transactions within the past, no matter how long ago.

b. Call colleagues in the business, and past colleagues in your life. You do not know where your business is going to come from, especially given the current circumstances.

c. Friends and Family.

Implement Marketing Program

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1) Make or clean up your email list.

2) Create or update your marketing, social media, website, meet-up group, bio, brochures, flyers.

3) Start marketing by doing email blasts, post articles on social media, hosting webinars.

4) Offer something of value. Create content of value – not a sales pitch. Become viewed as a leader in your industry. Offer newsletter, helpful website links and useful webinars.

WHAT TO DO PERSONALLY:

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• Eat healthy, cook at home.

• Meditate, pray, bring calm into your life.

• Exercise, go for walks, move your body.

• Sleep well and rest when it is time to rest.

• Play Music, Paint, Enjoy your hobby.

• Talk to positive people.

 


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David Mashian

David Mashian is the founder and CEO for MoneyMac Loans. David started MoneyMac because he personally experienced and realized that small businesses and entrepreneurs could not qualify for loans under the traditional bank lending standards. MoneyMac is a nationwide lender dedicated to providing investment real estate loans for residential 1-4, multi-family, mixed-use and commercial properties. David provides asset-based investment property loans give financing for tough to qualify borrowers, including W-2 employees, self-employed entrepreneurs and small business owners. MoneyMac focuses on the property’s value and the borrower’s credit, without using bank statements or tax returns.

David is a proven real estate industry leader, who has helped many companies transform their business goals to reality. He has a high degree of real estate experience and expertise spanning from real estate finance, brokerage, sales, leasing, brokerage management, and franchising of real estate brokerage companies. Using his wide base of connections to brokers, investors and industry leaders, David has put together many deals for joint ventures, debt & equity raises, acquisitions, and real estate sales. David graduated from the University of California, Los Angeles, and teaches Real Estate Principles at the University of California, Irvine.

Daniel and Adam

How These Co-Investors Continue Delivering High Returns Through Yet Another Recession

By Tim Houghten, Staff Writer

While some are hiding out and putting their heads in the sand amidst current events, Adam Levine and Daniel Edrei are among the few who are not only thriving, but growing as the market cycles and creates new opportunities.

Real Estate In 2020

The US real estate market kicked off big at the beginning of 2020. New record deals were made and many wealthy individuals and corporations went on a buying spree.

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Interest rates were low, capital was the most plentiful it had been since 2006, and the bulls were running wild.

While experienced investors had forecast a new recession coming for years and were already prepared, the majority had their blinders on. Most were not ready for how fast the coronavirus pandemic hit the US economy.

Among the immediate impacts were disruption in the building material supply chain, bans on renting vacation properties, and talks of moratoriums on foreclosures. Quarantine and stay at home orders brought conditions not seen since in 80 years, since World War II. Perhaps even since the Spanish Flu 100 years ago.

Fortunately, we, and the real estate world have never been better equipped to weather something like this. Consider some in the past had to hide out in closets and between the walls for years just to survive with their lives. Now quarantine looks like luxury homes, flat screen TVs, 5G internet, Netflix, Amazon Prime on demand, and more than enough time to make endless memes.

These Moments That Distinguish New Leaders & Create Massive Wealth

Daniel and Adam

Via Zoom we caught up with Adam Levine, Managing Partner of Levine Capital Management, and Daniel Edrei, Managing Partner of TCS Anika Homes.

It didn’t matter that one of them was in Philadelphia, another in New Jersey and our reporter in Florida. Those who are excited about this moment are finding ways to leap on the opportunities and keep on doing business.

Zoom just happens to be one of the tools they are using to keep communicating with investors, acquire deals, and to keep operating and signing new leases. Even during a complete lockdown.

It may prove to be one of the shortest recessions in recent history, but however long it lasts, it is just another turn in the cycle for experienced real estate investors.

It is in these moments that legends like John D. Rockefeller, Warren Buffett and Sam Zell are made. It is when there can be great gains in family wealth that lasts for generations.

Tragedy, Transition, Triage & Creating An Upward Trajectory For Your Finances

There is no question that the coronavirus and its personal and economic impact come with a lot of tragedy.

It is also time to look forward. Those who don’t will be reeling from this moment for a decade or more, while others are enjoying their best lives ever.

Daniel & Adam looking at computer

Hopefully, like Adam and Daniel you were already transitioning your investment strategies, asset allocation and portfolios long before COVID-19 reared its ugly head. If not, it is high time to triage your money. What do you need to sell before it is too late to save? What can you save with some extra care and attention? What will thrive and have immunity? Where do you put your energy and resources?

Since 2012 Adam Levine has been involved in well over 1,000 transactions, and has focused his funds on capital preservation and high returns in recession resilient, risk adjusted investments.

Daniel Edrei has been investing in real estate for over 25 years. He’s been through the dot com bust, 2008 and now the coronavirus pandemic. He is no stranger to recessions and how to invest through them. After 2008 he took stock of his debt investments loans he made. He realized that his higher LTV loans actually out-performed others where they had invested in teams with the strongest sponsors and operators. So, he began engaging in ‘dequity’ deals where they would share in the equity. Then moved into equity investing.

Seeing the coming recession Daniel said he had already been transitioning his funds and assets from luxury to workforce housing, well before it hit. They already have around 3,000 units under management, and are now well positioned to become the next Blackstone. The large multi-billion dollar hedge fund famous for creating Invitation Homes and B2RFinance, and buying tens of thousands of single family rentals in 2008.

Investing For Success

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As of our Zoom interview, Adam and Daniel said they are actively investing, deploying capital, securing new leases with tenants and making acquisitions.

They continue to look for portfolios of 1- to 100 plus units to buy, and encourage those holding them to request a competitive bid from their latest fund. Today, they are mostly focused on row homes and workforce housing in Philadelphia. Though they may expand to cover Washington DC, Camden, NJ, Baltimore, MD and other surrounding areas.

While other investment providers have continuously been reducing the value of their offerings and yields over the past few years, Daniel says they are actually expecting to be able to deliver even better returns ahead. They already promote targeted returns of 15% to 24% (IRR). Access to better deals and better prices in 2020 may boost that even further.

What Is Co-Investing?

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Now on the third fund for TCS Anika Homes, Daniel’s firm is sponsoring access to high performing income property portfolios. His direct LPs are typically sophisticated investors committing at least $200,000.

Desiring to make these investment opportunities more accessible without compromising on service, Adam and Levine Capital have partnered to co-invest in this fund. By investing through Levine Capital, accredited individual investors can still participate, but with minimum investments of just $10,000 to $20,000. This enables them to test the waters before committing even more capital, after experiencing the results for themselves.

This is an exciting opportunity. Especially for all those who thought they missed out on 2008, and the chance to create great wealth. Few expected it to come so soon. Just don’t sleep on the chance to invest while the market is ripe.

The Keys To Navigating The Market In Times Like This

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1. Be Prepared, Move Quickly

Ideally investors were prepared in advance. Most weren’t. There is still a chance to shift asset allocation and reposition for success. Just don’t waste any more time.

2. Proven Relationships

While there are many seemingly great opportunities out there, the truth is that new entrants to real estate investing can be at a severe disadvantage if they are going the DIY route. It is going to be super hard to test out new contractors and property managers and build a trusted brand in these times. Fortunately, TCS Anika Homes was well ahead of this with a vertically integrated and owned ecosystem incorporating all facets of the business from brokerage to management and construction.

3. Partner With Veterans Who Have Been Through It Before

Even Adam says that despite graduating with a business degree, and a Masters in property management, theory and book knowledge only goes so far. He made his own greatest leaps and was able to learn the most and invest safely by partnering with others who have been through the trenches of previous cycles. This is in a large part driving what he is offering others today. Instead of packaging and selling his knowledge in a guru-like course or training program, he walks investors through his deals and co-invests side by side with them.

Adam LCM

Find out more about these funds, recession resilient investments, and their founders at LevineCapital.com and www.TCSAnikaHomes.com.

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Breaking: Demystifing CARES Act and Other COVID-19 Resources for Investors

By Stephanie Mojica

The $2.2 trillion CARES Act is the largest economic relief program in the history of the United States and has two primary programs to offer — the Paycheck Protection Plan (PPP) and the Economic Injury Disaster Loan (EIDL).

These programs, offered through the Small Business Administration (SBA), provide unprecedented economic relief for entrepreneurs, according to Rony Marootian. He is the Marketing Operations Manager for the Los Angeles-based tax preparation and financial consulting firm Robert Hall & Associates.

PPP loans are based on the average monthly payroll expenses of a business, multiplied by 2.5 and capped at $10 million, according to Marootian. They are intended to cover expenses for a business during any eight-week period between February 15, 2020 and June 30, 2020. PPP funds can be used for payroll costs, rents, mortgage interest, and utilities. If a business owner maintains a certain level of payroll expenses and employee numbers during that eight-week period, the loan is 100% forgiven; as employee numbers fall below those levels, the forgivable amount is phased out.

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While business owners can get both the PPP and the EIDL, both loans cannot be used for the same purpose, Marootian said in a recent email interview with Realty411.

According to the U.S. Chamber of Commerce, “if you are able to secure a PPP loan, the $10,000 grant will be subtracted from the forgiveness amount.”

EIDLs (also known as emergency advance grants) are to be distributed within three days of a business’ application; however, the PPP program does not have deadlines for lenders to disburse loans, Marootian said.

“However, the purpose of these new programs is to get funds to small businesses struggling to stay open and keep employees paid due to COVID-19, so the CARES Act has provisions to reduce burdens in the processes and increase efficiency,” he added.

SBA PPP loans are disbursed by SBA-approved lenders. Due to the circumstances of the COVID-19 crisis, the SBA has given the U.S. Department of the Treasury and the SBA the ability to grant temporary SBA-lender status to lenders that do not currently participate in the program; this will allow more loans to be approved and disbursed as quickly as possible. The SBA does not issue PPP loans, but instead guarantees them to the lender. However, the SBA directly administers EIDLs.

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“Based on our experience, we’ve not seen the government provide such a rapid response to help small businesses,” Marootian said.

“The purpose of these new programs is to keep small businesses afloat and get funds to small businesses who are struggling to continue to pay employees, so it was imperative that they responded quickly.”

According to the CARES Act, a small business is any business that operates with 500 or fewer employees. In some industries, the size may be expanded by the SBA. Self-employed professionals, independent contractors, and sole proprietors also qualify, according to Marootian.

“The SBA does not currently have an industry size standard for employee numbers for real estate brokerages, property managers, appraisers, or other activities related to real estate,” Marootian said.

Sole proprietors and “gig economy” workers will have to provide documentation to prove eligibility, including payroll tax filings to the IRS, Forms 1099-MISC, and income and expenses from the sole proprietorship, according to Marootian.

Marootian emphasized the importance of not pursuing any financial programs or making any business-related expenditures without some level of professional guidance.

“With so much uncertainty, be sure to speak to your accountant and financial advisor to review your options before you spend any money during this time,” Marootian added.

To find more information about the PPP loan program, please visit: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp

To find more information about the EIDL, please visit: https://covid19relief.sba.gov

Robert Hall & Associates is currently offering complimentary consultations about taxes and other financial concerns. For more information, call 818-242-488 or email rony@roberthalltaxes.com.

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Breaking News: This Week’s Historic Stock Surge Calms Investors

By Stephanie Mojica

After weeks of bad news, there is plenty of good news for real estate investors and realtors alike. On Wednesday, March 25, U.S. President Donald J. Trump as well as Senate and Congressional leaders reached an agreement on a $2 trillion stimulus package to hopefully stave off any recession due to the myriad problems caused by COVID-19.

economy-3972328_1280The day before, Dow had its best day since 1933, according to The Los Angeles Times. Dow’s index increased by 11.4%.

Standard & Poor leaped 9.4%, which was the third-best day for gains since the 1940s. Because Standard & Poor is particularly important for 401(k)s, which impact an estimated 50% of American workers, according to CNBC.

Nasdaq jumped 8.1% as well.

According to Forbes, the unprecedented stimulus package will do the following:

• send $1,200 checks to most Americans;
• increase unemployment insurance benefits;
• set up a $500 billion loan program for small businesses in trouble;
• provide $130 billion for hospitals;
• inject $150 billion into state and local stimulus funds;
• loan $50 billion to affected airlines; and
• create a $500 billion fund for industries, cities, and states.

wall-street-4847634_1280Yesterday’s latest statement from President Trump indicates he set Easter as an optimistic date for businesses to resume to full operation. These positive signs from Wall Street and the executive branch are increasing investor confidence in both the stock and real estate markets.

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OH WOW! From Hoard To Restored

By Holly Lynn

Go From Hoard To Restored With These Easy Tips

With spring upon us; along with tulips, allergies, and warmer weather, is the dreaded spring cleaning. It’s time to scrub, disinfect, and purge.

It’s an opportunity to prepare for the year ahead and lighten up the heaviness that too many Christmas gifts and accumulation of junk from the previous year.

With these simple tips, you can go from gatherer to minimalist in no time.

Make a plan of action.

idea-1855598_1280As with any project, a good plan of action is a good idea. If you want to get organized you have to organize your thinking.

Go from room to room and write down what needs to be done overall. Then make subcategories for each room. For example the kitchen. Write down everything that has to be done. Then in the subcategories write down the freezer, pantry, cupboards, etc. Next to each item write if you are keeping, donating, trashing, or recycling/upcycling, or selling.

You can find many helpful lists on Pinterest or just Google it.

Donate to charitable thrift shops.

Donating to charity feels good! It’s a way to give your stuff away to a good cause. Only donate items that are in good condition, unsoiled, and mark-free. There are many places that will take your belongings. Some will even pick up your donations, depending on location.

donate-654328_1280The Salvation Army has been around for almost 155 years. Donations fund a myriad of programs aimed at assisting people. The non-profit organization sponsors rehabilitation, financial aid, disaster relief, elderly services, youth camps, etc. Check the website for pick up availability in your area.

Goodwill is a for-profit charitable organization that uses funds to assist with job placement and employment services. Pickup service is available in some areas.

Hospice provides quality, palliative care for terminally- ill persons who have less than six months to live. They focus on comfort care rather than life-saving measures. They also provide other services such as family support services, financial assistance, etc.

AMVETS thrift stores’ goal is to provide veterans with extending services such as V.A health, scholarships for education, youth services, entertainment abroad, etc.

There are many more thrift stores that are willing to accept your donations.

Make money

Another way to rid yourself of excess stuff is to bulk up your piggy bank by selling your items. There are the old-fashioned methods of yard sales and garage sales, but in this day and age, the internet has many websites or apps that can make selling easier.

ecommerce-2140604_1280Craigslist is a website devoted to forums, rentals, rants, and raves, etc. One of the most frequented sections is the For Sale category. You can post any item for sale and arrange for a meetup between yourself and the purchaser. Always be cautious when procuring this kind of acquisition.

Poshmark is an app where selling your clothing, shoes, accessories to buyers is easy. Poshmark focuses on preloved fashion that is usually name- brand. They provide a shipping label and you pop it in the mail. No meetings are necessary.

Etsy This app focuses on the unique, handmade, and vintage.

Mercari, also known as the selling app, is a hub for many categories. From fashion to footballs, and Louis Vuitton to Nike, Mercari is a great place to off your hoard and get moola.

Recycle and repurpose

In a throw-away society, recycling and repurposing are beneficial to the planet. You can toss your paper goods; such as calendars, old dusty books, and magazines, in the recycle dumpster.

recycle-555645_1280Repurposing furniture to sell or redecorate is a creative way to save money or make money. The cost of new paint or varnish pales in comparison to having to purchase new furniture.

Always try to reuse and repurpose. However, if you spend too much of your time, or if it gets in the way of making progress in your cleaning expedition, then maybe you should let it go.

One way to get help is to get your friends on board. In exchange for helping offer and bribe them with your goodies. You can kill two birds with one stone. You know the old saying, “One man’s junk is another man’s treasure.”

Throw it away

When you cannot see a way to donate, sell, give away, or recycle/repurpose; then just toss it! Please don’t ponder on this too long. This is what got you in this mess in the first place. Marie Kondo, organizing expert asks, “Does this spark joy?” If the answer is no, then release it. Just throw it in the trash bin!

Organize it

In the event that you just can’t part with Johnny’s school artwork or the sweatshirt you had since college, then at least organize it. Put it in boxes, plastic storage containers, anything to tidy up the clutter.

boxes-3992896_1280You can find superb, organizational, containers on Amazon or Walmart. Just make sure you do not make another hoard with storage boxes.

Here are some final tidbits to help you:

  • Use over-the-door racks for everything
  • Store shoes in a bin under the bed
  • Roll up towels, undies, and t-shirts for easier storage
  • Color coordinate everything
  • Keep kitchen appliances in the cupboards for clutter-free countertops
  • Hang your pots and pans
  • Use tension rods to add space in your cabinets
  • For chemical-free cleaning use baking soda, vinegar, and water.
  • Make use of vertical spaces
  • Bring older food to the front in your cabinets and refrigerator

“Clutter is nothing more than postponed decisions.”
– Barbara Hemphill

“For every minute spent organizing is an hour earned.”
—Benjamin Franklin

We tend to hold onto belongings because they evoke memories, make us feel secure, or because of laziness. Whatever the reason that you find yourself surrounded by material possessions, free your soul by minimizing, organizing, and mitigating your load. When you do, you will move freely about your space. Not only physically but mentally. Clutter will bog you down. It makes you tired, interrupts your sleep, and gives you, what I like to refer to as scrambled brain syndrome.

When you finally come to the end of your clean-up, reward yourself with a hot bubble bath, candles, music, and champagne. Then toast to yourself and give yourself a Good Job and Well Done!


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Holly Lynn is an Airbnb Manager and financial hard money lender. You can reach her at www.hollylynn.com or hollylynnproductions@yahoo.com for services.