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Why now is the time to start a policy

By Gabby Darroch

It really burns my biscuits when I hear people say, “I don’t want to start a policy yet because of the Coronavirus. I am not sure where the economy is going to go.”

corona-5081311_1280And the reason why this gets me so heated is no secret. Let’s be honest. Many people are making decisions out of fear right now. And fear-based decision-making is just about the worst thing you can do in an already difficult situation.

But this difficult situation is more reason than ever to start a policy because you’re right, you don’t know where the economy is going to go. On the contrary, did you know where the economy was going to go before? No, and you will never be able to predict this.

Things happen. We have windfalls and downfalls. Raises and demotions. We buy things and we also sell things. There are pandemics; We are healthy. Terrorists attack; Our country is safe and secure. We have Republican Presidents; We have Democratic Presidents.

My point is, you never EVER know what is going to happen. You can’t predict the future. So why do you want someone else controlling your own financial life?

Now more than ever, this is why you want to start a policy.

This is why you want to take control of your financial wealth. Because you don’t know what’s going to happen.

mailbox-2607174_1280Do you really want to be sitting by your mailbox waiting for:

  • your stimulus check to arrive;
  • the government to take care of you;
  • your pension to kick in;
  • social security to supply you with income; or
  • your 401(k)/IRA/qualified plan/mutual fund to save you?

Is that working for you?

How many people do you know that are out there at retirement age that are working when they should be enjoying their life? Are they working because they really want to be working? Because they just want something to do? Or are they doing it because they have to do it for survival because their qualified plan, their 401k, their IRA, their pension won’t save them? And the government didn’t take care of them like they thought they were going to.

It’s time to wake up.

businessman-4279253_1280It is time to take control of your own financial life. Quit making excuses. You are the one that can take control. And what better way to do it than to put your money in an environment where you have guaranteed tax free growth, where you pay the tax ONE time on your money at the lowest possible rate and now you have it into a vehicle, into a machine, into an environment, where you have guaranteed growth, and the government is completely out of your hair.

And not only is it going to create wealth for you while you’re living, but it’s also going to create multi-generational wealth for your spouse, your children, your grandchildren, and future generations to come.

Come on ladies and gentlemen. Get on board. Now is the best time to start your banking policy!

Why do you think we’re so busy here at The Money Multiplier? It’s because people are sick and tired of all that’s going on with their money. They are tired of the bloodbath in the stock market. And they don’t know what’s going to happen with Real Estate.

Next time you think, “Oh no! Are we at the peak or are we in another recession or depression? What’s going to happen?” stop yourself and remember, you have a policy, so your money, your financial future, is safe. That is, if you take action now. Eliminate all those worries in your life by taking control of your own financial wealth.

If not you, then who?

businessman-4914044_1280If you’re not going to take care of yourself then who will? YOU need to make the decision right now.

The wealth train is moving down the track. And it’s going to stop at your station. Are you going to let it pass you by? Are you going to watch it head on down the track? Or are you going to hop on board and take the wealth train to the promised land where YOU own and control your financial life and future.

To learn more or get started, please visit www.TheMoneyMultiplier.com . Scroll to the very bottom and click on “Member Area.” Then, 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.

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Why Become a Residential Assisted Living Expert?

By Gene Guarino

What will you be an expert at?

You’re going to become an expert at something. The question is what? There’s the saying that it takes 10,000 hours to become an expert. Now when you think about that, at 40 hours a week and 50 weeks in a year, that’s 2000 hours in a year, so if you devote five years of full-time effort to anything, you’ll be an expert. That job that you have that you could be an expert at, whether it be Infusionsoft, marketing online, selling a product, starting a store, or being a chef, the question is what and why. Why do you do what you do? What is it really all about for you?

It’s your choice.

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So, what is it that you’re becoming an expert at? 2000 hours a year is 10,000 hours in five years of your life. You should decide what you’re going to devote yourself to. You could be more efficient and cut that time in half and make it 5,000 hours and get it done in one year by going to somebody else who knows what they’re doing and is willing to show you how so that you can become an expert very quickly. Because it’s not knowing something. It’s doing something with what you know.

Learn from the example set by experts.

Richard Branson has 300 plus companies, but not one office. You see what he focuses on is finding people that have invested their time and have the expertise. He hires them and becomes partners with them. He puts them in a position, gives them the tools and the ability to thrive in that environment. He brings people on and teams with them. He hires them to be the expert so that they tell him what to do.

Always be an expert in communication.

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Communication is one of the things that you need to become an expert in. Maybe you are a really good team player and don’t need to be the front man. As long as the leader is heading in the right direction and you believe where you are going, then stay on that bus.

What are you willing to do today?

Think about how many books or articles on the subject have you read. How many webinars you have watched. Who is it that you’re hanging out with that may be able to help you? Where are you getting your input from? What is it you’re doing today will allow you to be an expert in your field, in your desire or your passion? And then we’re back to the why. What does that mean? What is the reason? What’s the passion? I guarantee you’re going to become an expert at something. The question is, is it productive, Is it profitable, Is it something you have a passion for? Is it with the right people? Why do you do what you do? Just decide what it is you’re going to become an expert in before you move forward.

Be sure to subscribe to our iTunes podcast to listen on the go! [CLICK HERE]


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Gene Guarino
Founder/CEO
Residential Assisted Living Academy™

Gene is the President, CEO & Founder of RALAcademy.com. Gene has over 30 years experience in real estate investing and business. Today, Gene is focused on just one thing… investing in the mega-trend of senior assisted housing. He has trained thousands of investors/entrepreneurs throughout the United States how to invest in and operate residential assisted living homes. For over 25 years he has been educating people on the strategies of successful investing, business and self-employment. He now specializes in helping others take advantage of this mega-trend opportunity.

 

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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.


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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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!

virus-5115044small

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.

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Control Freaks Welcome

By Gabby Darroch

When you think about traditional banking systems, I am willing to bet you don’t think about having control over your money. Typically, the banks have all the control.

Think about that for a second. It’s YOUR money and the banks CONTROL it. They control what you do with it. They control what OTHER PEOPLE do with it. And they control the “wealth” you gain from it. I say “wealth” in quotations because for you it’s not really wealth at all. You earn pennies on your invested money while the banks gains upwards of 400% on that same money you invested.

I’m sure when I put it like that you see there’s something obviously wrong with the traditional banking system. It’s just another way the rich get richer, but what about you?

Well, imagine being in control of that banking system. With cash compounding you can be, and you’re going to notice some HUGE differences when compared to everything you’re used to in the traditional banking world. Here are 3 of them:

#1: You don’t have to lock up your cash.

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If you are currently contributing to some kind of retirement account, such as a 401k, you probably forget about that money regularly. Why? Because you can’t use it until retirement age without being severely penalized. Out of sight, out of mind. Right? Well with cash compounding you aren’t “locking away” your money for retirement that may not be here for another 10, 20, 30 or more years like you are with retirement accounts. And you get full use of your dollar when you need it… NOW! With those traditional retirement accounts, your dollar typically becomes weaker over time, leaving you with fewer dollars than you invested.

#2: You don’t have to turn over control to someone else.

It’s risky to give someone your money and not know if they are doing a poor job with it until it’s too late. Well, that’s what you’re doing when you invest your dollars into a traditional retirement account. If you had the right information, you could easily be the one that’s in charge of your money and know where your finances stand on a daily basis instead of relying on a stranger to do the leg work, only to find out they could’ve done better.

#3: There are guarantees from day 1.

The ONLY guarantee you’ll ever see with any qualified retirement account is that they won’t go below zero. So much for overdelivering on their promises. With cash compounding, you are guaranteed a minimum of 4% growth, no matter what happens in the economy. Your money isn’t tied to the market so if it crashes, you will still be sitting pretty.

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The Money Multiplier Method utilizes this cash compounding concept. And through these techniques, we help you to create your own generational wealth that is completely, 100% controlled by you.

Your money, in your control, working for you every single day… Who knew?

To learn more about this method and what it can do for you, please visit www.TheMoneyMultiplier.com, scroll to the very bottom and click on “Member Area.” Enter the password “bankwithbrent” 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.

info@themoneymultiplier.com

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Webinar: COVID-19 Expert Housing Forecast – RSVP Now.

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LIVE ONLINE SUMMIT BY TIM HERRIAGE

Hello Savvy Investors;

I’m beginning to get really excited about the live webinar we’ll be having with some of the smartest people I know in the real estate industry.

Be sure to set aside time on Wednesday night at 5:00 as you’ll want to be dialed in to hear this very special event live!

First, I’ll answer a couple questions I have already received:

  • Will the event be recorded?

Yes. Those that purchase the live event will have twelve-month
access to the recording.

  • Are there limited tickets?

Yes! The webinar platform I use (Zoom) only accommodates
500 attendees at a time.

  • Can I ask questions? YES!

The live attendees will have ample time to ask questions of all
our speakers and guests.

  • What is the Agenda?

That’s a great question. Be sure to read our agenda below:

5:00 PM – 5:30 PM: Introduction of speakers
5:30 PM – 6:15 PM: Keynote Presentation: “The Economic Outlook for the Residential Real Estate Market” Mark Dotzour
6:15 PM – 6:30 PM: Q&A with Mark Dotzour
6:30 PM – 7:30 PM: Structured Panel discussing the presentation with all of the speakers
7:30 PM – 8:00 PM: Open Q&A — Mark is an economist from the Texas A&M Real Estate Center and is one of the most accurate figures in this industry in my opinion.

I’ve heard him speak at several events, and decided to get him to help us navigate the increasingly confusing economy. I’ve already reviewed his presentation, and let me tell you, it’s going to be great!

Don’t miss this important industry webinar, learn insight not available anywhere else.

RSVP NOW – CLICK HERE

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Visit REALTY411 at: http://realty411mag.com/?xg_source=msg_mes_network

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Feeding Residents in Residential Assisted Living

By Gene Guarino

Food, It’s important for all of us. In assisted living, it’s actually the number two activity, if not number one inside an assisted living home. If we feed the residents properly, they’ll be healthier. They’ll live longer, they’ll be better behaved, they’ll be more comfortable, they’ll be a joy to be around. However, if somebody is uncomfortable, with either the food choice, the amount of food, the quality of food…that is so easy to fix.

How much does it cost to feed residents?

The cost of food is not very much at all. The national average per day per person in assisted living is $5 to $7 a day per person. If we’re to take a 12-ounce piece of Filet Mignon, and bring it to the seniors, that would easily feed four of them. Buying that filet at the store might cost $15 a pound. So if you bought $15 a pound and you bring that into the home, that’s about $4 per person for that filet. If you had filet once a week, you’re head and shoulders above every other assisted living home out there.

What do the residents want to eat?

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I always ask the residents when they come in, what’s your favorite? What do you love to have? What haven’t you had in a while? What’s your favorite cake and pie and the rest of it? If they say, I love seafood, shrimp, fish and so on. You can get jumbo shrimp the size of your finger that costs you very, very little and if they ate one, two or three of them, that’s all they need. For them, the high-quality foods served on a special occasion is a real special treat.

Can you hire a chef? What are my options?

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Now, if you really want to go for it and be special, if you really want to have a home that people will wait in line to get into, have a chef, a dedicated person who is culinary trained. Maybe even having a menu on the table. Do cook to order breakfast. How much extra did it cost you? Not much at all. The reality is most of those seniors are going to eat the same exact meal every single day and there’s probably not going to be that wide of a variety, but if there were five things they can choose from. How special would that be? Lunch could be a set lunch, or maybe two choices. You have one simple that’s a staple. It’s soup and sandwiches, and another one to choose from. Maybe it’s chicken salad or it’s some other meal that’s available that you have, and that’s the one meal that’s made. In between breakfast and lunch, they’re making a wonderful meal for dinner. With wonderful smells throughout the house, the seniors are looking forward to it all day long and then that food will be served by the caregivers when it’s dinner time. You could charge a thousand dollars a month more because you have a chef. The chef is a feather in your cap, it’s what will bring people in and they’ll stay with you for it.

Be sure to subscribe to our iTunes podcast to listen on the go! [CLICK HERE]


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Gene Guarino
Founder/CEO
Residential Assisted Living Academy™

Gene is the President, CEO & Founder of RALAcademy.com. Gene has over 30 years experience in real estate investing and business. Today, Gene is focused on just one thing… investing in the mega-trend of senior assisted housing. He has trained thousands of investors/entrepreneurs throughout the United States how to invest in and operate residential assisted living homes. For over 25 years he has been educating people on the strategies of successful investing, business and self-employment. He now specializes in helping others take advantage of this mega-trend opportunity.