Don’t Leave Thousands on the Table at Closing

By Kathy Kennebrook (The Marketing Magic Lady)

One of the things that never ceases to amaze me in the real estate business is how many investors leave hundreds or thousands of dollars on the table at closing due to errors in the closing documents. This is an area where many investors need to be educated. Many times investors get excited about the bottom line and forget to check the figures on the documents.

It is a mistake to assume that the HUD or closing statement is correct or that the closing documents are correct. The person preparing the closing statement can make mistakes. In addition, the person preparing the closing statement and documents is using figures that they have acquired from other people who could also make mistakes, such as the insurance company, the Realtors, the lender, home inspection service, or the surveyor.

You need to take the time to read all the documents carefully before closing on any deal. I have personally seen errors on the HUD at almost every closing I have ever been part of. Many investors only look at the bottom line and think “yes that’s enough money” but they fail to look at the whole closing statement, and in doing so possibly leave thousands at the table. I just had a closing take place recently where there was a mistake of a thousand dollars on the HUD. They put one of the buyer’s expenses on my side of the closing statement. I don’t know about you, but I think a thousand dollars is a lot of money to leave behind when you are entitled to it.

If you are looking at a closing statement and you aren’t sure why a figure is there, ASK the closing agent or attorney what it is and why it’s on the closing statement. It’s their job to make sure things are done correctly and all the figures are on the right side of the statements at a closing. Until I thoroughly learned the real estate business, I questioned every closing statement I looked at to make sure there were no mistakes.

There are some areas in particular that should be checked thoroughly. If there is a Realtor fee, make sure the percentages are correct and the payment amount to each Realtor is correct if more than one Realtor was involved in the deal.

Make sure you check the per diem interest to make sure this figure is calculated correctly. There are programs online that can help you with these calculations. I recently had a deal where I was the lender and my borrower was paying me off with the sale of the property to a buyer. When I received my check for the payoff on my note, I had been overpaid by $750.00. The per diem interest and pre-payment penalty had been calculated incorrectly. Had I not caught the error and written a check to my borrower, he would never have known there was an error. His mind was on nothing but the bottom line and he left at least $750.00 at the closing table. Compared to big checks, these may seem like small amounts, but multiply these amounts by how many closings you will do over a period of just a year and it adds up quickly! If it’s your money, you are entitled to it.

Make sure that the figures on the HUD from the insurance company, termite inspection, home inspection, survey, realtors or any other fee that should be carried to the HUD are correct. There have been many times when these figures were either incorrect or there were fees on the HUD that I had already paid out of pocket before the closing. If there are home owner association fees, make sure the pro-rated amounts on these are correct. If there is a home warranty to be paid for the buyer, make sure it shows up on the closing statement. These are all errors I have personally experienced on closing statements.

Check to make sure that the pro-rated property tax figures are correct on the HUD and appear on the correct side of the HUD. If you are due pro-rated taxes from your seller, make sure they show up as a credit on your side of the HUD. If you owe pro-rated taxes to a buyer, make sure these show up as a credit on the buyer’s side of the HUD. If there is a new loan amount or a payoff figure from a lender make sure these figures are correct. Make sure that any pre-payment penalties have been properly credited or charged. If you are paying off a mortgage, also make sure you are not charged a pre-payment penalty when none is due. This is another error I recently encountered on a closing statement.

There are other areas where I have frequently found errors so make sure you check your documents carefully before the closing. It’s much easier to deal with problems at the closing table than have them show up later and have to be corrected. If you are assisting a buyer with closing costs, make sure they don’t charge you more money in closing costs than they are entitled to. If you are assisting a buyer with closing costs and you see a big pay day on their side of the HUD, you need to open your mouth and protest it. Most lenders will not allow a buyer to take any more than 500.00 away from the closing table, especially when it is your money. If there is money left over from seller assisted closing costs, it should be credited to the seller who assisted with closing costs. It shouldn’t result in a big payday for the buyer.

Make sure you also check loan documents carefully. Check the interest rate, the balloon date and amount, and the amount of the note. I had a note and mortgage just recently where I was funding the deal for the buyer and the payee of the note and mortgage was the seller instead of me. They also had the balloon date wrong on the note. It showed a ten year balloon instead of a one year balloon because someone accidentally added a zero.

If there is an interest only payment to be made each month, make sure this is clearly stated in the note and mortgage. Also make sure that terms for late fees are clearly stated if you are the person holding a note for your buyer. Make sure names and addresses are correct and spelled correctly. Make sure you get an amortization schedule whether you are the mortgagor or the mortgagee. This is the best way to track a loan.

All of these are important points to check before any closing occurs. Don’t assume the title agent or attorney will catch the errors. They do many closings each day and they usually are unable to catch every mistake. In addition, very often the title agent or attorney is transferring figures they got from other people such as the Realtor, the lender or the insurance agent so they my not be aware that these figures are incorrect. It’s your deal and your closing, make sure the documents are correct so you don’t leave thousands at the closing table or create title problems later that could have been solved at the time of the closing of the deal.

Make sure all the documents that are to be signed and notarized are done properly. Make sure social security numbers or Tax ID numbers are correct on the 1099 so you are taxed correctly. I just recently had a closing where they put my social security number on the 1099 instead of the corporation that was supposed to absorb the income from the sale of the property. These are all real errors that occur all the time. Make sure you protect your interests when closing on properties whether you are buying or selling or simply holding a note so you don’t leave thousands on the table at the closing.

For more information on all the tools you need to find deals and automate your real estate investing business, visit my website at www.marketingmagiclady.com. While you are there be sure and sign up for my free monthly newsletter.



Yield Hungry Investors Discover New Real Estate Opportunities Online

High yield seeking investors are finding exciting new investment opportunities in a $200B online landscape

JP Maroney and his investors have found a new form of real estate online. So, far this new frontier has been delivering strong double-digit returns, with no signs of slowing any time soon.

While the massed has been desperately searching for yield, a few has discovered high returns in the new digital economy. Bonds and CDs may be paying negative net yields, and the stock market as a whole may be so over bloated that price to earnings ratios are a joke. Yet, there are opportunities out there. At least for those willing to adapt to the fast-changing world we live in now.

From Aging Technology to Albert Einstein-Like Epiphanies

JP Maroney started his first company at 19 years old. In the 90s, he was running successful magazine companies, which he successfully exited in 1999. He and his wife went on to launch a video training company for franchises and trade associations. In 2004, Maroney upgraded to the arena of online coaching, and began generating leads online. Out for a walk one evening, JP was thinking over a recent news show on MSNBC or CNBC, in which a top fund manager was talking about the importance of embracing alternative investments, providing they could put a dollar in, and get a reasonable yield out.

This was JP Maroney’s “Eureka!” moment. He gained a new perspective, which has paid off handsomely. He realized he was already investing in online real estate, with great success. He was investing in online lead generation to the tune of around $2.50 per lead, and was easily able to sell those leads at $3-$5, and flip his money for outsized returns and a big IRR every 30 days.

The $200B Online Investment Landscape

The importance of the internet, and the ability to effectively and efficiently get in front of, and connect with consumers, with measurable results verifiable for every dollar spent in marketing is obvious. At least 19 of the biggest and best-established retailers in America are either going bankrupt, or are at least slashing stores and staff, and are cashing out their brick and mortar real estate. They just started marketing online too late. Then we have Amazon, who is leveraging its online prowess to dive into brick and mortar assets, becoming the largest landowner in Seattle, and taking over Whole Foods with a $14B bid.

Digital marketing is already a $200B business and growing. It’s already bigger than TV advertising, including the Super Bowl. Most entrepreneurs and VCs look for at least $1B to $2B markets as a measure of a good industry to be in. This is already 100x that.

43% of respondents in the State of Digital Advertising 2017 survey and report said they increased paid search advertising between 2015 and 2016 alone. eMarketer estimates growth in US digital ad spending to accelerate at 9.9% to 28.4% per year between 2015 and 2020.

Getting Responzive

From realizing he was doubling his money every 30 to 90 days in digital advertising, and realizing he could do it for investors too, JP has delivered double digit returns for others for 4 years straight. His biggest problem has been having to under-promise, as the returns on digital marketing make current bond, stock, and fund yields look like a joke.

Maroney’s B2B facing portal, Responzive, eliminates the need for ‘hope and pray advertising’, and enables businesses from real estate to insurance companies to obtain ready to buy consumer leads, on-demand. JP says that the service is for serious businesses and those serious about scaling quickly, and have an appetite for 5k+ leads per month.

The New Frontier

JP Maroney’s investment firm Harbor City Capital has appeared in Inc. Magazine, and many other major news sites. Harbor City Capital is the investment engine which fuels Responzive, and other digital marketing arbitrage ventures, as well as branching into acquiring and monetizing big data and data centers.

Via an exclusivee phone interview with Realty 411, JP broke the news that the firm is currently acquiring a high profile $100M retail domain, complete with its trademarks, and data on 15M active users. As of July 2017, the firm already had in excess of 1.2B data records in-house, and is generating 4/5M leads per day in different niches and verticals.

Opportunities for Accredited Investors

Harbor City Capital continues to grow quickly, and has just announced a unique opportunity for accredited investors to participate in its success. This is via a 506c filing and seeding funding round. Investors receive preferred shares via a convertible note, with a 5 year redemption period, offering a minimum of 17% returns. However, an IPO could be quite likely within the next 12 to 18 months.

Accredited investors are able to diversify their portfolios into this industry with a minimum of a $50k investment. Though the opportunity closes once the funding round hits $25M.


Investors are still hungry for yield, and there aren’t many places to find it these days. Digital marketing is one of the biggest and most vital industries today. Those that do it well stand to gain sizable market share, while others fade out. Digital marketing arbitrage and big data offer an exciting apex where these trends meet. One which could dwarf the returns and performance of many other business and investment models.

For more information about online leads for your business visit Responzive.com. Visit HarborCity.com and fill out the contact form for more details on the investment opportunity.


Steve Bighaus: Leveraging Technology to Improve Investor Lending

By Anita Cooper

Investing in property can be frustrating, especially when you’re always searching for good financing options that suit where you’re at as an investor.

Having someone in your corner to provide quality information and advice can help you reach your goals more quickly than going it alone.

As founder of Team Bighaus, Steve’s clients know they can count on him when they need to finance a new opportunity…even when that opportunity is their own place of residence!

Steve has a vested interest in property investors’ success…it’s why he does what he does. His number one goal is to become the all-in-one resource for property investors.

But as a forward thinking kind of guy, Steve is always on the lookout for ways he can improve his processes to get better results for his clients.

One such process is technology…using it efficiently and effectively.


That’s why, after speaking with thirty to forty companies, Steve settled on working with Sierra Pacific Mortgage Company. They understand his goals as a specialist in lending to investors, and they share his vision of using technology to deliver exceptional products for his customers.

One exciting development is the creation of a new loan origination system that will allow a borrower’s information to be obtained straight from the source.

This will simplify the process for both investors and homeowners and expedite the loan origination process.

One particular issue that many fix and flip investors are facing is the challenge of finding eligible buyers for their properties.

Steve’s research has found that these investors are experiencing a dismal fall-out rate of 40 to 50 percent!

As part of his goal to be a full service company for investors, Steve and his team aspire to preclude any potential problems as early in the process as possible. Using all of the tools at their disposal, they provide quality pre-approval letters towards the goal of improving results for investors.


Other tools at Steve’s disposal include an automated system for appraisals that will let the lender know whether or not an appraisal is needed, and a great customer relationship system.

And as any of Steve’s customers will tell you, Team Bighaus is known for their stellar customer service. Whether you leave a voice message, drop an email or send a fax, you will receive a response the same day.

Need a prequal letter and it’s the weekend? Just call Steve…he’ll take care of it. If you were to sit down with Steve he’d tell you to think of him as your banker – someone you can count on to be in your corner.

Bottom line, while pricing is important, there’s something Steve and his team can offer that few can…responsive customer service paired with innovative technology to create exceptional products to help investors grow their wealth.



The Number 1 Risk for Real Estate Investors Now

By Fuquan Bilal

What’s the top risk that investors in real estate are facing today?

There is still a lot of opportunity out there. There are great deals to be made. Yet, it is also true that it is taking more attention to detail and effort to find the really profitable deals. Market well, in addition to buying, structuring, and managing right, and you’ll be okay if you have good deal sources. However, there’s real risk.

The number one risk in the real estate market today is that 90% of investors have no plan for sustainability. None. Some may not even know what that means if you ask them.

The vast majority of real estate agents and investors in the market now are very green. They’ve only experienced the business during the great bull run we’ve had since 2008 and 2011. Honestly, while I’d like to say I’m pretty smart or talented, the truth is that you couldn’t really not make money in real estate for the past 10 years. It’s been so ridiculously easy. Anyone could do it, and they have.

That’s great for them. I love to see people succeed. There are a lot of guys and gals who have gotten into real estate in the last few years and haven’t only flipped houses themselves, but have been building spec homes, doing Airbnb, amassing a few hundred rental units, and then either offering turnkey properties or teaching others as newly minted gurus.

Some of these people really do know their stuff, but most have just been riding on luck. Worse, they either don’t believe a correction is coming, keep saying we’ve got another 12 to 18 months (which they’ve been saying for more than 18 months), or are seriously minimizing how impactful the next correction will be.

Here’s the real problem. They have no plan to hold things together when the market corrects, and if you’ve been watching the data, some markets are clearly correcting already, and have been for over a year. So, many are paying too much for properties, are basing their values and business models on rents and a resale market that isn’t there, and don’t have the reserves to survive a temporary crunch. They owe too much, and are only a month or a few away from going bankrupt if cash flow tightens up.

Now, it’s no secret that you can both make money at the top of the market, and that our most famous billionaire investors are those who made their wealth when everyone else thought the market was at its ugliest. The difference is in being prepared and pricing things right.

What can investors do to beat this risk?

  1. Before investing with anyone, ask what plan they have for sustainability
  2. Know your real estate and economic cycles (history repeats itself)
  3. Stay in tune with the market data, and what’s really happening out there
  4. Know the value before you invest
  5. Look for value, don’t speculate

Investment Opportunities

Find out more about investing in secured debt and real estate, go to NNG Capital Fund


The 3 Things Investors Need Most in 2019

By Fuquan Bilal

Do you have the three things you need most out of your investing for this year and beyond?

Many are finding it hard to make sense of the market right now. The media headlines proclaim the economy is awesome and supercharged with growth and low unemployment. Yet, the hard data and other signals suggest there are some corrections in the works. The bottom line though, is that you need these three things to get you through.

1. Passive Income

Time is the most precious and scarce resource we have. The only way to really get more time is with passive income. We can only become so productive. Then it is up to passive investments to make money so we can spend more time on other things. That’s true whether you are already making millions a year, or are in a high paying career, but are still trading your time for a wage. This is going to be even more critical over the next couple of years. And it doesn’t matter whether or not you own rentals right now, or you think your company is well insulated from a recession. If you’re not getting truly passive income, then it may be time to consider a fund or other vehicle.

2. Downside Protection

Who knows, we may really be in the best economy ever, and real estate prices, stock values and incomes might just keep going up. Of course, the odds are that there is some type of temporary correction in the works. That means it’s just smart to have some tangible, underlying hard assets and to be overcollateralized in order to protect wealth and capital during the months and years ahead.

3. Stable Performance

No single asset is going to perfectly and consistently perform the same forever. And it’s those fluctuations that are really tricky and usually come at the worst times. By diversifying and harnessing great management, we can keep our total portfolio performance steady, and yet without being so over-conservative that we end up with negative yields.

We believe we’ve achieved all this, and the ability to future proof your portfolio through our hybrid fund. Check out how we’re doing it today…

Investment Opportunities

Find out more about investing in secured debt and real estate, go to NNG Capital Fund