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Where Do I Find the Best Direct Mail Lists?

By Kathy Kennebrook (The Marketing Magic Lady)

This is the big question that I get a lot! The true secret to success for a Real Estate Investor is finding sellers who really need to sell. I use several different targeted direct mail campaigns to locate different types of highly motivated sellers. Some examples of these types of mailings are out of state owners, estate and probate properties, quit-claim deeds, expired listings, burned out landlords, vacant properties, military transfers, inherited properties, for sale by owner, and pre-foreclosures, just to name a few.

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The key to success using direct mail is customizing your direct mail piece and your list to reach exactly the kinds of motivated sellers you want to deal with in order to create the kinds of deals you want for your Real Estate Investing business. The very best way to do this is to locate mailing lists from reputable companies, refining them to meet your individual criteria, then mailing to these potential sellers again and again.

Real Estate Investors often neglect to market to sellers in this way because they think the list is too difficult to get, or they only send the mailings once and quit. These are some of the easiest lists for you to obtain and it will be very profitable for you to do so. After having mailed thousands of letters and done hundreds of deals I can personally attest to the power of direct mail for finding all the motivated sellers you could want that none of your competitors know anything about.

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You can contact a list broker or your local property assessor’s office and ask them for these specific lists, or you can create some excellent lists to mail to yourself. It’s fairly easy to do. Here are just a few ideas for you. You can go to the courthouse and research divorce cases, death notices, liens and judgments, tax liens, marriage licenses, bankruptcies, eviction filings or Lis Pendens, which is the first step toward foreclosure in order to create mailing lists. Let me share a few pointers here.

  1. Do your homework when picking a list broker. How current is the list? Does it have all the information you need to create your direct mail campaign? Does it reach the audience you are targeting?
  2. Do a test mailing of 100 pieces to test any new list. How many responses did you get? How many letters came back with a bad address? How many deals did you create?
  3. Don’t waste your marketing dollars marketing to a bad list that won’t get you the result you want.
  4. Create continuity with your direct mail campaigns. You can mail a lot of letters or a few letters but you need to have a flow of mail going out at all times in order to create a continuous funnel of incoming leads.
  5. Never mail more pieces than you are comfortable getting responses to. If you do a huge mailing and you get tons of responses you can’t get to, you are wasting marketing dollars. Put systems in place to help you respond to the mailings and grow your business gradually.

Make sure that you do repetitive mailings. The more you repeat your mailings, the more deals you will create since you are taking the time to build a relationship with these sellers. When they are ready to sell, they will contact you first, even if they have been contacted by someone else in the meantime.

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Another way to find motivated sellers is to cultivate relationships with individuals who can help you find deals. One of the techniques we implemented was to create a specific direct mail campaign targeting specific types of attorneys who were much more likely to bring us deals and we let them know we are in the business of buying houses.

Once you develop relationships with these attorneys, they will call you first when they have a client who needs to sell a property quickly no matter what condition it’s in. This is just another way to build ongoing lead sources using direct mail. You only have to create this direct mail campaign once to create an ongoing source of leads for your Real Estate Investing business.

If you own any kind of business and you need certain types of leads, think about unique resources that can provide you with the leads you need and create a direct mail campaign targeting these resources. This can be really profitable. For example; if you own an alarm company or a lawn maintenance service it would behoove you to create a direct mail campaign targeting owners of properties in your area who live out of state. These are potential customers who need your services.

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The main reason that direct mail works so well is that you are reaching highly targeted leads. You become the potential seller’s first option when they need to sell. Even if you are on a limited budget, direct mail is an excellent source of leads for you since you can buy more houses from fewer leads, thus maximizing your marketing dollars. As your business grows, you can increase the number of mailings you do. You can also target specific neighborhoods or dominate certain parts of town. In doing so, you become a “property value expert” in those areas, which makes the offer-making process that much easier for you.

You end up creating an ongoing relationship with your target market, which makes it easy for you to follow up with formerly inflexible or unmotivated sellers. Since these mailings are so targeted and so residual, there is virtually no competition for these properties. It puts your lead generating system on “auto-pilot,” leaving you more time to make offers, do more deals, and make more money.

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Most importantly, be consistent in all your efforts. The successful Real Estate Investor has a network of people and strategies at their fingertips at all times. If you don’t develop continuity to your marketing campaigns, you’ll see your results begin to drop off immediately. This is true no matter what business you are using direct mail to target to.

When you implement multiple techniques and several different direct mail campaigns, you will have more opportunities than you’ll be able to handle and the possibilities become almost endless. Using direct mail to develop a “cookie cutter” system to accomplish this is one of the most affordable, reliable, and effective ways I know to build your lead base quickly and have all the business you will ever need.

Direct mail continues to provide our business with about seventy percent of the total deals we do. That’s a big number and an excellent result from simply taking the time to build a residual system to bring in new leads to our business every single day.


Be sure and check out my website at www.marketingmagiclady.com for all the marketing resources you need to grow your real estate investing business. While you are there be sure and sign up for our free monthly newsletter.


LEARN DIRECTLY FROM KATHY KENNEBROOK AT REALTY411′S VIRTUAL WEEKEND INVESTOR EXPO, CLICK HERE!

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How to Choose Self-directed Retirement Plans for Your Future?

By Dmitriy Fomichenko

Financing planning is an important aspect of real estate investing, and most of the realtors pay special attention to it. However, when it comes to retirement planning, we often prioritize other financial responsibilities instead. It’s critical to understand that you’ll need at least 80% of your current income to maintain your current standard of life during retirement. The good thing is that there are retirement options that allow you to accumulate retirement savings at a heightened rate. Self-directed retirement plans offer the freedom to invest in alternative assets, including real estate, mortgage notes, tax liens/deeds, precious metals, private equity, personal lending, and even the traditional stock/bond investments.

In order to help you choose the best self-directed retirement plan, our team has put together a small Infographic, comparing an SD IRA, IRA LLC, and a Solo 401k plan.

Infographic: Choosing self-directed retirement plans

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Maximum Asset Protection – Tips and Information

By Kathy Kennebrook (The Marketing Magic Lady)

A Discussion on the Importance of Protecting Your Assets

Throughout your life, no matter who you are or how you earn your living, you need to be concerned about protecting your assets. Your assets may include your home, vehicles, jewelry, boats, artwork, properties and whatever other assets you accumulate along the way.

After all, you work hard for what you have and there are always going to be people out there who want something for nothing. The more money you have the greater a target you become, and you’ll want to protect yourself from frivolous lawsuits.

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In the real estate investing business this is especially true. The real estate business is one of those where you will be piling up assets quickly. If you are holding properties and you have tenants or tenant/buyers in your properties, this can make you an even bigger target for possible lawsuits.

For this reason alone you want to be holding your assets in another entity, such as a land trust in order to keep your name off of public record. The main advantage to purchasing properties in land trusts or other entities is anonymity.

If everything you own is in your own name, it makes it easy for someone who wants to sue you to find out what you have. If a plaintiff’s attorney looks on public record and it appears that you have nothing, you are much less likely to be sued.

If you are holding properties in land trusts, corporations or LLCs this prevents your name from showing up on public records; making it appear that you don’t personally own anything; and that is the whole idea. You want to hide your assets from creditors and predators. There are a lot of people out there who want what you have, but they don’t want to work to get it.

As you begin to grow your real estate business, you need to begin thinking about protecting yourself and your assets along the way. Make sure you begin working with a reliable real estate attorney who can help you grow and protect your business.

Make sure they understand the importance of purchasing properties in land trusts or in entities that do not represent you personally. If they don’t want to do things your way, find someone who will.

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In addition, you want to be thinking about placing other items of value that you own, such as bank accounts, jewelry, vehicles, boats or artwork in property trusts. This will protect these assets from showing up should you be sued for any reason.

You also need to be working with reliable a financial planner and a CPA in your business in order to protect you assets by investing them well with a diverse portfolio. Your CPA will also help you hold on to your assets by finding ways for you to legally pay fewer taxes on the income from your business.

The real estate business is one of those businesses where there are a lot of great tax deductions for you if you structure your business correctly. You also want to think about diversifying your assets so that you don’t have all your “eggs” in one basket. As the markets continue to fluctuate this becomes even more important for protecting your assets.

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Your CPA and your financial planner can also help you structure your assets so that if something happens to you, your assets will be distributed to children, grandchildren, charities or whomever you choose in a way that is fluid with the least amount of taxes and stress.

This way there is no question as to how the distribution of your assets will be handled if something were to happen to you and this can save your family a lot of hassles later on.

Protecting your assets while you are still around to enjoy them is going to be very important to securing a future for you and your family.


For more information on asset protection and all other aspects of real estate investing, visit my website at www.marketingmagiclady.com.


LEARN DIRECTLY FROM KATHY KENNEBROOK AT REALTY411′S VIRTUAL WEEKEND INVESTOR EXPO, CLICK HERE!

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Top Industry Leaders, Plus Up-and-Coming Experts GO LIVE, Sept 12th and 13th

For Immediate Release

Realty411 Hosts Fourth Live Virtual Weekend Investor Expo for Hundreds of Guests

  • Nearly 2,000 investors have registered for a Realty411 Virtual Expo, since the pandemic halted their four planned in-person conferences.
  • Investors have RSVP’ed to Realty411‘s Virtual Expos from around the nation, representing 40 states so far; Plus, guests from eight countries have also attended.
  • Hundreds of guests are united online, in real-time, learning from some of the nation’s leading real-estate investment experts.
  • Realty411, a leader in mass media for the REI industry since 2007, once again leads the way in online information, as an early adapter.
  • Post-expo: Hundreds of additional investors are impacted by Realty411 Virtual Expos with free recorded video access.

Time-Tested Experts Reveal The Secrets of Their Personal Success in Real-Time — Live Chat is Available for Guests to Ask Tough Questions!

Realty411, the longest-running real estate investor magazine reaching new and seasoned investors nationally and globally, is hosting their Fall Virtual Weekend Investor Expo on Saturday, September 12th and Sunday, September 13th.

The complementary weekend online event features non-stop learning with some of the country’s most renowned real estate investors and industry leaders.

Beginning at 9 am PST (Pacific Standard Time), Realty411 will host a non-stop online interactive expo, and once again, top industry speakers, both veteran as well as burgeoning super-stars, will spill their secrets (and shortcuts) for the ultimate success in life as a real estate investor.

“The success of our last three events has been amazing, even greater than I had imagined they would be,” Linda Pliagas, the publisher says, adding, “I’m particularly excited about this upcoming expo because many of the presenting educators are people I have been personally known for over a decade — some even longer than that.”

Realty411 is proud of the long-lasting professional relationships they’ve developed, with some of the most renowned names in the REI industry, all for the benefit of their investor network. 

In fact, some of the confirmed educators scheduled for this amazing online event are leading experts in their respective fields, including: 

  • Kent Kinzer, marketing director of Equity Trust, A family-owned, Ohio-based company, Equity Trust is an industry-leading custodian of alternative assets in tax-advantaged accounts. Their 45-year track record of excellence is unmatched in the industry;
  • Merrill Chandler, founder of Credit Sense, is a legend in the credit restoration industry who has led the transformation of the personal and business borrowing space. Learn how to get so fundable!
  • Dutch Mendenhall, founder of Tax Auction Investors, is a former professional athlete who now runs a company that mentors thousands of students across the country. Dutch’s specialty is tax sales. He runs three investment funds that have amassed over $7 million in properties, and $3 million in profit over the last 12 months;
  • Hector Padilla, known as “The Chairman”, this legendary rags-to-riches So Cal investor has personally closed over $90M in real estate. Hector has also invested well over $300,000 on his REI education over many years. He has been trained by some of the most respected “Masters of Real Estate” in the industry;
  • Bill Walsh®, this powerhouse is considered one of America’s top mentors. Mr. Walsh is the CEO/Founder of Business Coaching/Venture Capital firm Powerteam International. He hosts and speaks at events all over the world. His passion is to empower entrepreneurs and business owners to create massive success;
  • Hannah Kesler, operations manager with The Money Multiplier, a family-owned business that teaches investors how they can start leveraging their purchases to build wealth faster. Hannah is passionate about sharing her family’s knowledge to empower Millennials to take control of their financial future early on;
  • Jay Butler, is managing director of Asset Protection Services of America. He holds a Bachelor’s Degree of Fine Arts (BFA) from Boston University. Jay builds his relationships through consistent attention to detail and reliable support. He has traveled extensively throughout the United States (having visited 49 of the 50 states), explored 36 nations worldwide, and has lived in a total of seven countries throughout North America, Central America, the Middle East, North Africa and Europe;
  • Dave Grimm, founder of End 2 End Results and other companies, he has helped raise tens of millions of dollars from national and accredited investor for many real estate syndication deals. Currently, he is focused on the science behind social media for company growth.
  • Seti Gersbherg, MBA, founder of REI Blade, will once again assist as an emcee at this expo. REI Blade is a revolutionary new software that helps private lenders focus on what they do best: Raise money.
  • Cliff Gager, veteran real estate expert, Cliff has been in the real estate business since 1992, starting in the residential mortgage lending world as a loan officer for a national mortgage company. Cliff teaches real world strategies that really work. Write down your toughest questions for Cliff — bring it on!
  • Kathy Kennenbrook, known as the “Marketing Magic Lady”, she has developed a direct-mail system that drives in motivated sellers by the herds! Kathy holds a degree in accounting and co-authored the book, “Walking With the Wise Real Estate Investor”, which also includes real experts Donald Trump, Suze Orman and Ron LeGrand.
  • Dr. Teresa Martin, Esq., director of the only official National REIA chapter in Manhattan, New York. Dr. Martin has helped thousands of personal investors, particularly women and people of color, gain the confidence and know-how to take charge of their finances.
  • Linda Pliagas, publisher of the longest and most-recognized real-estate media brands in the industry, Realty411 and REI Wealth, Linda is also an accredited investor and journalist. She has been on a mission to help investors since 2007 with the release of her first Realty411 issue.
  • The early-bird and most motivated of students will also receive “Achieve”, a complimentary e-book by Sunil Tulsiani, founder of Canada’s largest REI group, Private Investment Club.
  • PLUS, MORE AMAZING EDUCATORS TO BE ANNOUNCED!

RSVP NOW!

Undoubtedly, this is one special virtual event that seasoned, as well as burgeoning investors, must make time for.

Hundreds of investors from around the nation have already attended Realty411 Virtual Expos in the past, and hundreds once again are expected — all live and in a real-time, so investors can engage like never before.

For further information and to reserve your complimentary ticket, please CLICK HERE.

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One of the reasons why this event is so speculator is due to the time-tested knowledge that investors will gather simply by spending their time at this weekend bonanza.

“We know how to make millions in this business,” the publisher says proudly, and she explains: “As a landlord for the past 25 years, in and out of California, I’ve personally gone through the triumphs and tragedies of long-term real estate holding. Luckily, the pivotal learning lessons I’ve dealt with can now help me spread knowledge and support.”

Many of the the dozens of speakers who have already been featured on Realty411‘s Virtual Weekend Expos are known internationally, as some have spoken at numerous worldwide events before the COVID-19 pandemic obliterated in-person business networking gatherings.

So far, Realty411′s Virtual Expos have each attracted between 500 to 550 RSVPs for each event; plus hundreds of investors have joined in live and have interacted in real-time.

Nearly 50% of the guests who registered for the last virtual expo showed up, which is the highest ratio so far in Realty411′s 13-year history of hosting complimentary events for their readers.

Online guests who have checked in so far include investors from nearly 40 states across the United States, as well as over eight countries that have been documented, including: Netherlands, Germany, Canada, Australia, Mexico, Costa Rica, Hong Kong, and India.

In total, close to 2,000 people have now registered for a Realty411 Virtual Investor Expo so far since the COVID-19 pandemic hit.

Investors are urged to attend the complimentary live Fall Virtual Expo as video of this event will only be made available to paid Realty411 members.

 

RSVP NOW!

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Economic Update

By Lloyd Segal

It’s 2020; a crazy C-R-A-Z-Y year. We are in the land of the unknown. Things are happening for the first time that none of us have ever seen before. You must take it for what it is and adapt as best you can. But ask yourself, when this pandemic is over (and it will be inevitably) will you be able to look back and be proud of what you accomplished during this incredibly difficult period? With that in mind, let’s wash our hands, put on our facemasks, and get under the hood…

Pending home sales.

stamp-5371606_1280Pending home sales continued to rebound across the country in June as Americans rushed to buy homes despite the pandemic. The index of pending home sales rose 16.6% in June as compared with May, the eternally-optimistic National Association of Realtors reports. The increase comes after pending home sales experienced the largest monthly rise on record last month. Compared with a year ago, contract signings are up 6.3%, a sign of how sharply the market has rebounded from its coronavirus-related low. Consumers are taking advantage of record-low mortgage rates resulting from the Federal Reserve’s maximum liquidity monetary policy. The index measures real-estate transactions where a contract was signed for a previously-owned homes but the sale has not yet closed. The continued rebound in pending home sales suggests that the real-estate market is thriving in spite of the continued rise in COVID-19 cases across the country. Two main factors are driving the surge in home-buying activity. First, many buyers appear to be entering the market looking to make up for lost time. As such, the rise in sales is a reflection of the delays caused by the coronavirus outbreak. Second, historically low mortgage rates have created a sense of urgency among Americans looking to purchase a home and lock-in those low rates. Nevertheless, there’s still a shortage of homes available for sale as some sellers continue to stay on the sidelines rather than list their properties for fear of exposing their homes (and themselves) to infection. This supply limitation will inherently limit how many deals close in the months ahead.

Gross Domestic Product.

chart-5222697_1280In case you haven’t heard, the U.S. economy just suffered its worst quarter (April–June) in our nation’s history, with GDP falling a historic 32.9! The Commerce Department report highlights how deep and dark the hole is that our economy cratered into this summer. Sharp contractions in personal consumption, exports, inventories, investment, and spending by state and local governments, converged to bring down GDP, which is the combined tally of all goods and services produced by our economy during the quarter. Personal consumption, which historically accounts for about two-thirds of all activity in the U.S., subtracted 25% from the Q2 total, with services accounting for nearly all that drop. Spending also slid in health care and goods (such as clothing and footwear). Inventory investment drops were led by motor vehicle dealers, while equipment spending and new family housing took hits when it came to investment. Prices for domestic purchases, a key inflation indicator, fell 1.5% for the period, compared with a 1.4% increase in the first quarter. Bottom line: the numbers are alarming but all self-inflicted, with about half the quarter reflecting the sudden shutdown and the other half the slow re-opening. That said, GDP reflects the hole out of which we must now climb out of as we rebound in the remaining months of this bizarre year. Neither the Great Depression, nor the Great Recession, nor any of the more than three dozen economic slumps over the past two centuries, have ever caused such a sharp decline over such a shockingly short period of time. Ironically, this particular tumble, unlike previous declines, owes to a very different source than any of its predecessors: a government-induced shutdown aimed at combating a pandemic

Case-Shiller Index.

Home-price appreciation maintained a steady pace in May amid the pandemic, according to the Case-Shiller 20-city Price Index. The index posted a 3.7% year-over-year gain in May, down from 3.9% the previous month. Phoenix continues to lead the country with a 9% annual price gain in May, followed once again by Seattle with a 6.8% increase. Tampa, Fla., came in third, with a 6% uptick. But a look at the individual cities in the 20-city index shows that home-price growth could be slowing. Overall, the pace of price growth only increased in three of the cities Case-Shiller analyzed. Home prices have remained mostly insulated from the pressures of the coronavirus pandemic thus far. Falling mortgage rates have boosted the demand for homes among buyers, as the record-low interest rate environment has made purchasing properties more affordable for many people. At the same time, though, the supply of homes for sale nationwide remains severely constrained. Many home sellers have stayed on the sidelines and held off from listing their properties because of infection fears related to the coronavirus. But even before the pandemic, the country’s housing inventory was falling well short of demand. For years, the formation of new households exceeded the pace of home-building, creating a shortage. That gap between the demand for homes and the country’s inventory has pushed prices higher. And that gap explains why home prices continue to rise even if the job market takes another hit from the pandemic. There are some signs though that prices could end up falling. The house price index released last week by the Federal Housing Finance Agency indicated that home-prices nationally fell 0.3% on a monthly basis between April and May, despite a 4.9% annual gain. Finally, the godfather of the Case-Shiller index, Robert Shiller, predicts that home prices may decline in urban cities across the country as the pandemic accelerates buyers shift toward suburban and rural areas.

Mortgage Rates.

mortgage-4235937_1280According to Bankrate’s latest survey of the nation’s 20 largest mortgage lenders, the benchmark 30-year fixed mortgage rate is 3.090% with an APR of 3.380%. The average 15-year fixed mortgage rate is 2.740% with an APR of 3.060%. The 5/1 adjustable-rate mortgage (ARM) rate is 3.300% with an APR of 4.040%. APRs and rates are based on no existing relationship or automatic payments. For these averages, the customer profile includes a 740 FICO score and financing a single-family residence (with 20% down).

Office Rents.

California office spaces are expected to keep getting emptier (and their rent prices will likely keep declining) as the fallout of the pandemic persists, according to a new survey of commercial real estate developers and financiers by the Allen Matkins/UCLA Anderson School. With efforts to slow the spread of the coronavirus forcing offices to shut down, companies have adapted to a decentralized model in which employees increasingly work from home. Even when they’re eventually allowed to reopen, offices still won’t resume business as usual. They will be required to follow safety protocols that can be expensive, putting additional strain on budgets stretched thin by the pandemic-ravaged economy. Besides, many workers won’t even want to return, for fear of catching the virus. As a result, demand for office space has tumbled. Last quarter, office leasing in Los Angeles County was at its lowest point since the Great Recession! One-third of builders surveyed said they’re cutting back plans for new office developments by more than 15%, and three-quarters said they were experiencing stress related to current tenant leases. Retail space is taking an even more severe hit. For retail properties, the survey suggests no light at the end of the proverbial tunnel. The current view is that retail properties will be generating significantly lower rents indefinitely. Why? Because the pandemic has accelerated a trend toward online shopping and away from in-person shopping. So, retail spaces (i.e. brick and mortar stores) are really going to suffer. Industrial real estate, on the other hand, seems to be in a much better position due to the rise of e-commerce. People staying home during the pandemic are a boon for warehousing development (in order to handle the increased distribution to consumers). The industrial space market will continue to build to handle the increased volume. In Southern California, 60% of the surveyed developers said they are planning at least one industrial development in the next year, and 39% are planning multiple projects.

Consumer Confidence.

covid-19-5077645_1280Consumer confidence swooned in July amid a rash of new coronavirus cases in many states. The index of consumer confidence fell to 92.6 this month from a revised 98.3 in June, the Conference Board reports. The level of confidence is still above its pandemic low of 85.7, but it’s likely to be a long time before it returns to its pre-crisis peak. For example, the index stood near a 20-year high at 132.6 in February before the pandemic struck. This index signals a rocky economic recovery in the months ahead. It suggests that the recovery has shifted into a slower gear, as consumers become more cautious about the outlook as virus cases continue to escalate. Consumers have grown less optimistic about the short-term outlook for our economy and remain subdued about their financial prospects. Such uncertainty about the short-term future does not bode well for our recovery, nor for consumer spending. Thankfully, massive federal aid and other measures to prop-up our economy have helped stave off worse financial straits for millions of Americans already struggling to survive. More than 30 million people are receiving unemployment benefits. And hopes for a quick economic recovery from the coronavirus have been dashed by an explosion in new cases in Texas, California, Florida and other hotspots. Our economy will likely continue suffering regular ups and downs until the virus is brought under control or a vaccine is discovered.

Durable Goods.

shake-hand-3677534_1280Durable goods orders continued to recover in June, rising 7.3% on the heels of May’s 15.1% jump. The increase in orders in June was led by consumers buying automobiles and companies buying fabricated metal products. Orders for new cars and trucks leapt 86% last month as auto makers made up more lost ground after getting slammed early in the pandemic. On the other hand, aircraft manufacturers posted a whopping 462% decline in bookings. Boeing has seen demand for its planes dry up after a plunge in global travel during the coronavirus outbreak (see Boeing story below). That said, durable goods still have a long way to go to make up the massive declines in March and April, with overall orders remaining 16.0% below February. Fabricated metal products registered the largest improvement, up 4.5%, followed by primary metals (+3.6%), machinery (+2.7%), electrical equipment (+1.2%), and computers & electronic products (+0.1%). While computers and electronic products showed the smallest improvement in June, the category has been remarkably stable throughout the coronavirus contraction. Orders are up since February (pre-pandemic), probably reflecting extra computer equipment needed to help people work from home. But remember, while the second quarter was bad – terrible in fact – activity turned a corner in June and continues to recover. The third quarter (July, August & September), which we are roughly 1/3rd of the way through, is on track to see continued growth.

Federal Reserve.

covid-19-5152311_1280The Federal Open Market Committee left interest rates unchanged last week and noted that economic activity and jobs “have picked up somewhat in recent months” while pledging again to use its full range of tools to support further improvement. “Following sharp declines, economic activity and employment have picked up somewhat in recent months but remain well below their levels at the beginning of the year,” the Fed said in a statement after two days of talks. But economists are worried because the latest unofficial data suggests the U.S. economy is sagging again. In a unanimous decision, the Fed voted to keep its federal funds rates close to zero. The central bank again said it would keep rates near zero until employment recovers and inflation picks up. The central bank also kept the pace of asset purchase steady at $120 billion per month. The Fed is buying $80 billion of Treasurys and $40 billion of asset-backed mortgage securities to support the economy. Further, the Fed is expected to tie any future interest rate increase to higher inflation. Jerome Powell says the central bank will not consider raising short-term interest rates until inflation is seen rising above its 2% target. But many economists think the Fed has already informally adopted this approach.

Weekly Jobless Claims.

The number of Americans who filed new claims for unemployment benefits last week totaled 1.434 million, the Labor Department reports as the pandemic continues to ravage our economy. It was the 19th straight week in which initial claims totaled at least 1 million. But more disappointing is the fact that it is the second consecutive week in which initial claims rose after declining for 15 straight weeks. “Continuing Claims” — which are composed of those receiving unemployment benefits for at least two straight weeks — rose by 867,000 to 17.018 million for the week ending July 18. (Data on continuing claims is delayed by one week.) Thus, the level of weekly claims remains shockingly elevated and the rise in continuing claims definitely reflects the re-closings over the past few weeks that we’ve seen in some states where the virus has flared-up. For example, initial claims filed in our own California totaled 249,007. California is among the states that have seen a resurgence in coronavirus cases as state officials eased quarantine and social distancing measures. The stark reality is our economic recovery will be bumpy and uneven until we have a vaccine where most of the world’s population can be mass inoculated.

Boeing.

boeing-159589_1280If you think you’ve had a difficult time this pandemic, consider Boeing. The airplane manufacturer lost $2.4 billion during the last quarter and has laid off 35,000 workers this year. Ouch, that would give anyone air sickness. But the news only gets worse from here, so fasten your seat belt because this is going to be very bumpy! Boeing’s revenues fell 25% to $11.81 billion from $15.75 billion a year earlier, and their shares fell to $166.01, down more than 50% over the past year. The commercial aircraft unit suffered the most with a 65% drop in revenue from a year earlier to $1.6 billion as deliveries of new planes crashed. Add all of that to their beleaguered 737 Max program. If you remember, Boeing was in crisis before the coronavirus because of the fallout from two fatal crashes of its 737 Max that claimed 346 lives. The resulting lengthy grounding of the 737 Max, along with the financial pain of airlines, has driven up cancellations and scared off new orders for new Boeing jetliners this year. The company only booked a single order in June and suffered nearly 200 cancellations! Worse, Boeing has more than 470 planes sitting on the tarmac that haven’t been delivered to customers, most of them 737 Max jets (that may never be delivered). And if all of that weren’t bad enough, Boeing is also ending production of its legendary 747, a plane that has been its primary money-maker for more than five decades and is credited with spurring the boom in travel worldwide. International demand has been particularly soft, hurting the outlook for Boeing’s widebody commercial planes, like the 787 Dreamliner. Boeing expects turbulence ahead as demand for new aircraft won’t return until the second half of next year, depending on the timing of a coronavirus vaccine. The International Air Transport Association, a trade group that represents most of the world’s airlines, says it does not expect global passenger air travel to take-off again until 2024. (Question: Did I incorporate enough aeronautical terms in this story?)

Monday Morning Quarterback.

Congress is currently debating a second stimulus package to help American families through the pandemic. The issue now is whether the $600 weekly unemployment benefits should be continued, slashed, or worse, discontinued. Some argue that paying laid-off workers $600 exceeds what they received in salary thereby discouraging them from returning to work. But that argument is specious for several reasons.

pexels-karolina-grabowska-4386448First, do you know anybody that is actually refusing to return to work because they are receiving $600 a week staying home? Didn’t think so. As any attorney will tell you, there is always anecdotal evidence to support any argument, but even this is far-fetched (particularly in California). I’m sure there is somebody somewhere relaxing right now on a chaise lounge sipping a pina colada because they’re receiving $600 a week? But really, for the millions and millions of unemployed American workers that weekly $600 is crucial to their survival (plus it injects money into our economy).

Second, whenever their opposition to the $600 weekly benefits is questioned, Senators proudly point to a May article in Barron’s entitled “$600 Unemployment Benefits are Keeping People from Returning to Work.” But that title is terribly misleading and a gross distortion of the facts. The source for the article is the Federal Reserve’s May Beige Book. But the Beige Book says nothing like that. The Beige Book actually cited three distinct reservations raised by reluctant workers, not just unemployment benefits. The Beige Book explained that workers were more fearful of returning to work for health concerns during a pandemic (getting infected at work) and the lack of child-care (while schools are closed) than losing the $600 weekly checks. The Federal Reserve of Philadelphia reported similar findings among its contacts, including the fear of infection (if they returned to work) and lack of child-care as the primary reasons for not returning to work, not the $600 unemployment benefits. The Federal Bank of Chicago’s survey went even further and found that unemployed workers (receiving $600 weekly benefits) searched for work more aggressively than those whose benefits expired or who have not received them at all. The study also found that once individuals exhausted their benefits their search efforts dropped precipitously. That would indicate that unemployment benefits enhance the desire to return to work rather than discourage it.

pexels-karolina-grabowska-4386324Third, the above findings make sense when you consider the hard numbers. $600 a week for 52 weeks is $31,200 per year. Over 98% of American workers earn more than $31,200 per year. So why would any worker in their right mind refuse to return to work (and get paid more) rather than staying home and receiving $600 each week ($31,200 for one year)? Even if you add additional state benefits, people can still earn more if they return to work. For example, the median income is California is $71,000 and 98% of workers earn more than $31,200 per year. Does anyone truly believe that workers are content staying home (with $600 per week) and not want to return to work and earn more? Does a worker really want to reject a stable job opportunity rather than receiving $600 a week that they know is only temporary? That simply defies logic.

Bottom Line: Over 30 million unemployed American workers are dependent on that weekly $600 check to feed their families, pay their rent and utilities, purchase medical supplies, and buy the necessities of life during the pandemic. And all of that consumer spending is the very lifeblood of our economy. Continuing these weekly unemployment benefits is a much more efficient way to pump money into our economy. So the imperative is for Congress to pass the second stimulus bill as quickly as possible and help American families survive and preserve our entire economy, rather than punishing them by cutting unemployment relief.

LAREIC Monthly Meetings.

cancellation-4944723_1280As you know, we canceled our April through August meetings due to the pandemic, and now we must cancel all meetings until the end of the year (or the coast is clear). Our home at the Olympic Collection also remains closed. And, no, we’re not doing Zoom (for now). When California (and/or Los Angeles) terminate all restrictions, we will resume our monthly general meetings, Gold meetings, and real estate seminars. In the interim, thank you in advance for your understanding and for being a valued member and friend of LAREIC. We will keep you updated as the situation evolves and look forward to resuming activities as soon as we safely can. Please register on our website, www.LAREIC.com, for further updates.

Annual Los Angeles Real Estate Grand Expo.

Our annual Grand Expo is the largest and most exciting real estate event in Southern California. Last year we had 14 national speakers, 64 vendors, and over 800 investors and real estate professionals attending! (The Grand Expo is a joint production of the Los Angeles Real Estate Investors Club, Realty 411, and Sam’s Club). We originally scheduled this year’s Grand Expo for September 26, moving from the Olympic Collection to UCLA (to accommodate the huge crowds). But because of the pandemic, we were forced to postpone until November 14. We received word from UCLA that their entire campus is closing down until the end of the year. So we have officially moved our Grand Expo to Saturday, January 30, 2021. To get the latest updates, please register at www.LAGrandExpo.com.

This Week.

Looking ahead, investors will continue watching for news about medical advances, vaccine development, government stimulus programs, Fed monetary policy changes, and plans for reopening (or re-closing) our economy. Beyond that, the ISM national manufacturing index will be released today and the ISM national services index on Wednesday (8/05). But clearly the highlight of this week will be the monthly Employment report to be released this Friday (8/07). This data on the number of jobs, the unemployment rate, and wage inflation will be the most highly anticipated economic data of the month.

this-week-table-1080x210For further information, comments, and questions:

Lloyd Segal
President
Los Angeles Real Estate Investors Club
www.LAREIC.com
Lloyd@LAREIC.com
310-409-8310

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Myths About Land Trusts

By Randy Hughes, Mr. Land Trust

I write and teach a lot about the many benefits to using a Land Trust to hold title to real estate investments. There is a lot of misinformation in the marketplace about Land Trusts and a lot of bad advice given regarding these Grantor Revocable Title Holding Trusts. After using these trusts for over 40 years I have found that the myths outnumber the facts. In this article I will dispel some of the myths that I hear over and over.

MYTH: My lender will not let me close my deal using a Land Trust (LT)

TRUTH: This depends on if you are using borrowed funds from a lender that must qualify you in the secondary market. If you must meet secondary market guidelines it is true that you must close the deal in your name, but you can put the property into a land trust the day after closing. Once you have 4 secondary market loans (the maximum allowed) you must use a portfolio lender and they WILL let you close by taking title directly from the seller to your trust (So, you are never in the chain of title).

Note: Bank of America WILL let you close four secondary market loans using a land trust to take initial title. However, you must use an Illinois Land Trust and the property must be in Illinois.

no-68481_1280MYTH: Do I have to get a tax ID number for my LT?

TRUTH: The answer is no. Nor do you have to register your Trust Agreement with anyone on planet earth! (There are two States that I am aware of that require disclosure of the Beneficiary upon creation of the Trust…via the Deed to Trustee…but this problem is easily solved).

MYTH: You cannot do a Short Sale using a LT

TRUTH: False. You can and I have and there are many advantages to using a LT for this type of transaction.

MYTH: Is it true that I must record my Trust Agreement to make it valid?

TRUTH: No, and 99% of the time you would not want to record your trust agreement. However, there is that 1% reason that you might want to record. Contact me if you want to why.

MYTH: My attorney says Land Trusts are illegal in my state

TRUTH: This is probably not true. Almost all states recognize the validity of a LT or a similar type entity (Title Holding Trust, Common Law Trust, etc.). My experience is that a vast majority of lawyers do not understand Land Trusts and therefore do not recommend them. Too bad for their clients…they are missing out on over 50 Reasons to Use a Land Trust (I have written a booklet called, “Reasons to Use a Land Trust” and will deliver it to you for free if you text the word Reasons to 206-203-2005).

MYTH: If I use my LLC as the beneficiary of a Land Trust, I must register the LLC in the state where the property (held inside the Land Trust) is located.

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TRUTH: Wrong! Many accountants will tell you this, but they are incorrect. The beneficiary of the Land Trust is not “doing business” in the state where the property is located…the Land Trust is…and the Land Trust is not required to register.

Note: California has a law that says if you transfer more than 49% of ANY entity that owns property in CA or is the beneficiary of a Trust that owns property in CA, they have the right to tax you.

MYTH: Land Trusts are expensive to set up and maintain

TRUTH: Not true. If you follow my advice to put each of your properties into a separate Land Trust and you hire an attorney to do this for you, it WILL get expensive. But you do not need to do this. You can learn how to set up and administer your own Land Trusts (as many as you need/want).

MYTH: Land Trusts must have incorporation papers and the State notified

TRUTH: Wrong again! Land Trusts are not registered like corporations and LLC’s on a state-by-state basis (in fact, they are not registered at all…anywhere!). This is one of the many reasons to start your estate planning with a Land Trust for each property you buy.

MYTH: I was told that my Land Trust must open an account at a local bank

TRUTH: Not true. Since Land Trusts are “pass-through” entities in the eyes of the IRS you do not need a separate bank account for each Land Trust you form. You can set up an account, but it is not required. If you set up an account for your Land Trust, you will not have a tax ID number to use so you will have to use your own social security number (or, if your LLC is the beneficiary you might use the tax ID # for your LLC).

MYTH: It is illegal to hide the ownership of property

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TRUTH: I love this one. WRONG! It is not illegal to hold title to your real estate in a Land Trust to conceal the ownership (I call this being private about your business). The past president of the United States, Barack Obama, owns his home in Chicago, IL in a Land Trust with his attorney serving as the trustee. If it is good enough for a president, it should be good enough for you!

MYTH: Can I buy the Beneficial Interest in a LT without buying Title Insurance

TRUTH: Yes, you can, but I would not suggest doing this. I would always get a title policy and have the proper “search” done prior to transferring any funds. You want to make sure that the Trustee has clear title and there are no unknown liens or judgments against the property. You should also obtain a copy of the trust agreement and make sure the Trustee acknowledges EVERYTHING!

This is certainly not a complete list of misconceptions about Land Trusts, but is enough to digest for now. I will write more on this subject in future articles. Feel free to contact me if you have any specific questions. My number is: 217-355-1281. Or, randy@mrlandtrust.net

Randy_chair_500pxI 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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The Secrets of Being a Successful Landlord

By Kathy Kennebrook (The Marketing Magic Lady)

You’ve all heard the tenant horror stories from people who have had tenants in properties, but being a landlord doesn’t have to be difficult as long as you learn some strategies for handling your tenants. My husband used to say that handling tenants was like having a group of children that you have to train and discipline. But it doesn’t have to be that difficult.

You do have to make some specific rules for your tenants and stick to them. Every time you change the rules you give your tenants the upper hand. You must also have an iron clad lease that specifically addresses the issues that you may have with tenants including getting your rent paid on time.

rule-1752625_1280This is one area in which I am steadfast with the rules. I don’t care what the tenant’s situation is, their responsibility is to pay me on time and in full or they are stealing services from you without paying for them. My tenants are responsible for having the rent in our post office box or direct deposited through zelle or paypal on or before the date it is due or they are served with a three-day notice the next morning as required by law where I live in order to begin the eviction process. There are no exceptions. We even have tenants who send their checks to me priority mail to make sure they get to me on time. Most of our tenants have been with us a long time and many pay early.

You must also take the time to pre-qualify your tenants’ right from the beginning so you can avoid some problems right from the start. Don’t just accept a tenant into your rental property because they have the money to move in. Don’t let greed be your guide. Have your tenants fill out a specific rental application. Then you run must a tenant check with a reputable company. Don’t try to do this yourself just by looking at public record. You will miss credit issues and anything that may have occurred out of state. You need to find out the information you need to know about your tenants’ right from the start before renting them your unit.

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For example, if the tenant check shows the applicant was just evicted from another premises, this certainly isn’t going to be a tenant you want in your property. Or if your tenant has had recent felony convictions, this isn’t a tenant you want in your rental unit. If your applicant has multiple animals, this is also not someone you want in your rental unit. I will mention however, that I will allow a tenant with a small dog or cat to rent my units. I find that usually a tenant who has a pet that they have had for some time will make a good tenant who will stay longer in your unit.

I also have a separate pet lease which addresses specific rules regarding pets in my units. The pet lease requires that the dog or cat is an indoor pet and I have an additional non-refundable amount of security deposit for the pet lease and additional pet rent of 25.00 per month. I find that this works out very well. If the tenant gets a pet that is not on the lease, this is grounds for immediate eviction, and we do have someone who checks our units about every 60 days for us to make sure all is well with our rental units.

puppy-1903313_1280I also check out where they were living before by going by the address and checking it out and I talk to their previous landlord. I want to see how they have been treating the place where they were living before. If it looks like a pig pen or if they have multiple animals, this is not someone I want in my unit. If they don’t give me this information on the rental application, I won’t even consider them to rent my unit.

I know some of this is just common sense but it bears discussion. If a tenant makes it through my rigorous screening process, I also have them pay first month’s rent, last month’s rent and the security deposit either by cash, cashiers check or by money order. I do not accept personal checks for the move-in amounts.

During the following months I do not accept personal checks from them for the rent, we only accept money orders or direct deposit. The first time a check bounces for insufficient funds or any other reason, they must make it good immediately or I will immediately begin the eviction process. This is all covered in the lease they have signed. I also make sure that the person I have putting tenants in units for me thoroughly covers all the items in the lease with them before they sign it.

If a tenant does get their rent to us late, they are responsible for additional rental fees of one percent per day. These fees are in our lease as additional rental fees as opposed to late fees since some courts won’t allow you to get a judgment for late fees. Within the body of our lease we also require our tenants to have renters insurance and I want to see proof of the policy before they move in. This way I can’t be held liable for any injuries or the loss of their possessions due to an accident, fire, hurricane or any other natural disaster.

sale-3701777_1280Additionally, once my tenants sign a lease with me, I will not give them keys until I see proof of utilities in their name for the unit. In certain counties like ours, the landlord can’t turn off utilities in their own name. The only way the name changes on the utilities is with a new lease and then utilities get put in the tenant’s name. This rule may be different where you live, but a lot of the time if the tenant doesn’t pay their utilities it falls back to the landlord. This is just one way for you to protect yourself.

These are just a few of the basic techniques that will make you a happy and successful landlord. Monthly cash flow is a wonderful thing if your properties are managed correctly.


For more information on becoming a successful landlord and finding all the deals you need for your real estate investing business, check out my website at www.marketingmagiclady.com. While you are there be sure and sign up for my Free Monthly Newsletter!!

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How Deferment of Mortgage Payments May Affect Borrowers in the Long Run

By Edward Brown

When Congress passed Section 4021 of the CARES Act in response to the effects of COVID-19, their intent was to help borrowers who were having problems making their mortgage payments. Little did Congress realize that they were potentially setting up borrowers for trouble in the future when it comes to credit worthiness as assessed by the lending community.

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According to Mark Hanf, president of Pacific Private Money, “Section 4021 of the CARES Act contained a regulation that loan servicers “shall report the credit obligation or account for those participating in forbearance as current”. In other words, those participating in a forbearance program should not see their credit scores drop. However, there is a loophole that allows lenders to discover whether or not a borrower is actually making payments. It is the “comments” section of a credit report. The CARES Act does not mention the comments section of credit reports, and that’s where forbearance notations are going.” What borrowers are not being told is that any reference in a credit report to forbearance can be a Scarlet Letter for an applicant seeking a new mortgage, according to Kathleen Howley in an article she wrote in early May 2020.

According to Hanf, within a week of Howley’s article, his company received a loan request from a home buyer who was denied credit from a major bank for just this very situation. Although the bank sees the existing mortgage as “current” the forbearance has let the world know via the comment section that this borrower has requested a deferment. The major bank involved would most likely not deny the loan on its face due to the deferment, as this would violate the law; however, banks are notorious for coming up with a myriad of reasons for denying a loan and still stay within the guidelines set out for them.

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Conventional lenders desire to have plain vanilla borrowers who pay back loans in a timely manner. When a borrower changes terms of the loan by requesting principal forgiveness or other aspects of the loan, the lenders generally do not usually extend credit again to these borrowers and can negatively affect the borrower’s ability to borrow again from unrelated lenders. Such is the case back during the Great Recession wherein some borrowers took advantage of the economic climate by asking their lender to reduce the principal of their loan [total forgiveness rather than just a deferment]. The borrowers may have gotten a reprieve, but the long-term effects may have been more drastic. Similarly, to when a borrower files bankruptcy. The borrower may get out of paying creditors, but their ability to borrow in the future is usually severely hampered.

In one case, back in 2009, during the heart of the Great Recession, one banker tells a story of how a wealthy borrower first asked for a principal loan reduction of $500,000 because his collateralized real estate had decreased and his request was granted. But, when this borrower was faced with the prospects of having this reduction reported on his credit report or the fact that he would have to inform any new lender that he requested a principal reduction [as this question is usually on bank applications], he voluntarily requested that the $500,000 abatement be reinstated. He decided his ability to borrow in the future was worth more than the $500,000 principal reduction.

Borrowers will have to decide if requesting deferments is worth the risk of potential future lending restrictions based upon the lender desire to lend to borrowers who choose to defer mortgage payments when the opportunity arises. Whoever said, “there’s no free lunch” must have been talking about these very situations.


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Edward Brown

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

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Women Who Behave Never Get Rich!!

By Kathy Kennebrook (The Marketing Magic Lady)

I am often asked by women at events I speak at whether or not I think a woman can make a go of the real estate investing business on their own. My personal answer to this question is always a resounding-YES!

Actually, women have a distinct advantage over men in the real estate investing business. Sorry guys, it’s the truth! You see women are generally much more comfortable working with other women. That’s a given. So this makes the whole process go a lot more smoothly. And Men really like working with Women because it kind of levels the playing field. Women are seen as easier to work with. So Women end up doing really well in the real estate investing business even if they are working on their own.

man-and-woman-smiling-inside-building-1367269 smallMen are more comfortable working with a female investor for a lot of reasons. The first and most important is that there is no ego or testosterone coming into play in the negotiation process so generally a man and a woman working together are going to come up with a win-win solution much more quickly and easily than a man working with a man. It’s not like one of the guys “has to win”

Women can definitely be very successful in the real estate investing business working on their own. I am living proof of this fact. Even though my husband and I work together in the business, I am usually the one creating the deals, especially when working with senior homeowners. Once again; they just seem to be more comfortable working with a woman. I don’t mean to sound chauvinistic here; it just seems to work out that way. There seems to be a greater trust when working with a woman investor.

It also seems to go over better when I am the one asking for the deed to a property I want to buy subject to the existing mortgage. The whole scenario just goes better when I am the one doing the asking whether working with male sellers, female sellers or couples. I just think women are seen as more nurturing, empathetic and easier to work with. So yes, ladies; you can definitely have a successful real estate investing business all by yourself!

positive-businesswoman-doing-paperwork-in-office-3756678 smallI could share several examples of deals I have done myself, even very recently to drive this point home. I recently did a deal with a lady who had just turned 40 and decided to sell her home so she could use the proceeds to travel the country before she was too old to do so. She had been contacted by Real Estate Investors who were men and she wouldn’t sell her home to them. Then she saw our ad in a shopper guide and called me. We met and she agreed to sell me her house. She was just much more comfortable working with another woman, and being a single woman living alone, she was nervous about letting a man into her home that she didn’t know.

Let me share another deal I did where a couple was being transferred out of state for business and needed to sell their home quickly. They had had another investor come out to see them before I showed up. He showed up in a suit and tie and they felt he was just too “slick” for them to be comfortable working with, so when I showed up in nice slacks and a blouse, empathized with their situation and showed them how I could help them solve their problem, they sold their home to me. I made a hefty profit on this deal! I also brought references with me so they could make sure I was really who I said I was and that I could really purchase their home.

I do have some advice for women working on their own based on my own experience. Here is some of the best advice I can give you. Ladies, if you are going to a property and you haven’t been there before and you don’t know the sellers, carry a cell phone with you and make sure someone knows where you are going to be. This is just common sense information to protect you. In my case, most of the time, the negotiations have been done on the phone before I ever go see any property.

woman-in-white-blazer-holding-tablet-computer-789822 smallIf you are going to a seller’s home and there is a couple involved in the deal, make sure they are both going to be home. You need both of their signatures on paperwork anyway.

If you are going to a vacant ugly house I suggest taking someone else with you or making sure someone knows where you are, just in case. Just remember to use a little bit of common sense and caution in your dealings and you will be very successful in this business.


For more information on Kathy Kennebrook check out my website at www.marketingmagiclady.com While you are there be sure and sign up for my free monthly newsletter!

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The Problem With an IBC Policy

By Gabby Darroch

“What’s the problem with IBC?”

If you’re like many people who’ve heard about The Money Multiplier Method and IBC (especially for the first time) then you’ve probably had this thought cross your mind a time or two.

We get it. You want to know all the bad things that accompany all the stellar benefits of having and using your banking policy.

upset-2681502_1280Since the “perfect system” does not exist, this concept presents some challenges of it’s own. And we are prepared to discuss them with you, right here, right now. Why? Because, if you know anything about The Money Multiplier, you know we LOVE transparency. Just not when it comes to walls… or clothes.

So here it goes.

  1. Policyowners must commit to a long-term plan.
  2. Applying the recommended guidelines can be challenging… on your own.
  3. Most people don’t know the first thing about designing a plan that fits their specific financial needs.
  4. Your own mind may be your worst enemy.

Now, the good news is that we have solutions to each of these “obstacles.” So stop reading here if you hate having solutions to your problems.

The problem: Policyowners must commit to a long-term plan.
The solution: If you have commitment issues when it comes to your money, we get it! But just remember, your money isn’t locked up for years, unable to be even touched without some kind of harsh fees or penalties. This policy is nothing like your 401k, 403(b), annuity, or even a CD. And while in the first few years you don’t get access to 100% of the premium deposits you put into your banking policy, you’ll never have less than 60% of those funds available immediately within 30 days of making your premium deposit. And that’s just for the first year! Every year after, that percentage increases so you’re able to borrow more and more of your premium deposits. (And yes, it won’t be long before you’re able to borrow every single penny you put into your policy and more!)

The problem: Applying the recommended guidelines can be challenging… on your own.
The solution: Did you hear that last part? There is only a challenge if you’re going in alone. But if you’re with The Money Multiplier, we’ve got your back. We check in with you at least twice a year to update your goals. And we also give you a plan of how best to utilize your policy to reach those goals using your banking policy. So when you get a policy, we don’t expect you to know everything. We have a team that does all the hard stuff for you so you can enjoy your life, which is why you started this policy in the first place, right?

hand-1917895_1280The problem: Most people don’t know the first thing about designing a plan that fits their specific financial needs.
The solution: We don’t expect you to know a thing about these policies (although we always provide resources for you to learn from. Knowledge is power!). That’s what we are here for. You don’t need to know anything about policy provisions, riders, or other policy options that you might need. We take care of that part, always keeping your best interests at heart. So rest assured, your policy is completely customized to fit your specific financial needs.

The problem: Your own mind may be your worst enemy.
The solution: These concepts, even though they’ve been around for over 200+ years, are difficult for many to believe in. Not because they don’t work. In fact, there is no other tool out there that works quite as well in reaching your financial goals as the Infinite Banking Concept does. However, so many are taught their whole lives to think the way banks want them to think about their money. But your bank telling you they should control your money is like your (shady) mechanic telling you your car needs repairs it doesn’t actually need. Both are trying to make a profit off of keeping you in the dark about what’s really going on. (Side note: not all mechanics are shady. Some are pretty awesome!) The point? Trust the process that puts you in control of your money, not the one that’s kept you on the financial hamster wheel your whole.

steering-wheel-2209953_1280Our only goal is putting you back in the driver seat. And we’re here to help you overcome whatever obstacles are standing in your way to do so. Because here’s the thing: There’s never going to be a better time than now. We grow older. The bills keep coming. Our health declines (even if slowly). Problems come out of left field and hit you square between the eyes. But you can do this for yourself and your family and work towards the life you want, the life you want for them, and the future you all deserve. Because where there’s a will (and an awesome team of experts who’ve got your back), there’s a way.

As Nelson Nash, the founder of the Infinite Banking Concept, once said, “Someone’s gonna be the banker. And the tragedy is that it should be you, but people don’t realize that.” But now, I hope I’ve helped you to realize that you should be in control. You should be the bank. And we’re here to help.

To learn more about The Money Multiplier or to get started with your own policy, please visit www.TheMoneyMultiplier.com/member-area and watch the presentation that appears on the next page.

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