Compliance in Real Estate: Why It’s Important for New Agent Success

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By Rudy Kusuma

No matter the industry, one of the key components to success is how we manage our ethics, relations with others and adhere to the regulations we are expected to follow. Conflicts and compromises are a part of work life, but in real estate, we are expected to negotiate with a variety of clients and other professionals on a daily basis. It is a challenging industry to navigate, but by learning the art of compliance early on in your real estate career, you can set yourself up for success.

Compliance in real estate can become complicated very quickly and impact all aspects of the job, from how we bring in clients to managing contracts to maximizing profits. While many understand this, few realize its importance.

Image from Pixabay

I know how scary it can be as a new agent. When I started out in 2007, it was a time of uncertainty – the real estate market was about to crash and my second baby had just been born. I had a family to feed and had no other choice than to succeed.

I realized the way things had always been done wasn’t necessarily the right way, and that there had to be a way for me to make enough money to care for my family without spending all my time chasing leads. I want to help other agents just beginning their journey to skip over those difficult hurdles and be well on their way to reeling in the benefits this great career can provide sooner, rather than later.

Compliance and Career Management

Compliance is the biggest single advantage you will have when it comes to managing contracts. This is the part of the process that can have a big impact on your client’s satisfaction with their purchase, your profit margin and so much more.

When you do your job right by marketing properties correctly, finding the right properties for your client, coordinating the home inspection, negotiating the best price for your clients and handling all the contracts, you are then at an advantage to set your own fees and commission. Real estate fees are not regulated by law, so when negotiating finances and pricing, don’t forget to include your own hard work in the math.

Image from Pixabay

I remember being a new agent and wanting to micromanage all aspects of my clients’ home buying process, and I am sure you are eager to be hands-on every step of the way, too. However, there comes a point in our career when you cannot market, negotiate, manage contracts and also have that personal relationship with your customers without experiencing agent burnout or something falling through the cracks.

When this point comes – and it will, I guarantee it – consider delegating the contracts. A delegated supervisor can assist in complying with the Real Estate License Act and Commission rules and help take some off our plate while we focus on what is really important, our customers. You will then be able to remain not only compliant with the regulations of your profession but maximize your customer’s satisfaction.

Beyond Technology

Many professions have been disrupted by technology and real estate is no exception. Buyers turn to sites like Zillow and Trulia instantly when starting their home search, and apps like DocuSign are making contract signing between parties an electronic process. The industry will continue changing, forcing real estate agents to adapt.

I know that can seem scary, especially as a new agent, but there is plenty of information to be found and used that isn’t on the Internet and needed during the home buying and selling process. For starters, there are criteria home buyers have in mind that aren’t included in online listings – everything from local amenities to the best neighborhoods for each family’s unique need.

You know the local market, what the best schools are, and the best neighborhoods in the area are for your clients. You probably even have knowledge of pending commercial developments and other neighborhood insights. Your client’s perfect home goes far beyond a white picket fence and granite countertops, and no online database can ever replace your intrinsic knowledge of the market.

Image from Pixabay

Perhaps the biggest advantage in our clients turning to us, the agent, is finding those hidden gems not posted on MLS. We know there are plenty of reasons a homeowner might not want their home on for-sale sites, and many real estate agents have pocket listings, or listings only they are allowed to sell. By building up your connections with other agents and builders, you can create an internal database of these types of listings to share with our clients, weeding out the need for technology to remain the sole way for buyers to find their dream home.

The first year as a real estate agent can be a tricky one, but understanding the regulations of the profession and standing behind a core set of values can lead to crushing it early on in your career. Stay compliant, use your knowledge to your advantage, and watch your income soar.

About Rudy Kusuma

Rudy Kusuma, founder and CEO of Your Home Sold Guaranteed, is the “Real Estate Agent Millionaire-Maker” who helps real estate agents develop their own $4 million GCI teams. He has been featured in Inc. Magazine and has co-authored two best-selling books. To develop your own million-dollar team, visit https://yourhomesoldguaranteed.com/our-story.

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411.com or our Eventbrite landing page, CLICK HERE.

Pros and Cons: Short Term Loans vs. Long Term Loans

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Image from Pixabay

By: Michael Mikhail, CEO Stratton Equities

Real estate investment loans can be tricky and it can be unclear at times which ones are the best. While there are many versions of loans, let’s go to the basics. There’s a time frame that you need to pay for your loan. It can be on the shorter side ranging from months to a couple of years and long-term loans can take more than a decade to pay off. Now, there are pros and cons to each of these and one of them may be a better fit depending on your loan scenario.

Types of Short Term Real Estate Investment Loans:

● Bridge Loans
● Hard Money Loans
● Fix and Flip Loans
● Foreclosure Bailout Loans

Types of Long Term Real Estate Investment Loans:

● Soft Money Loans
● Rental Loans
● NO-DOC Loans
● Stated Income Loans
● No Income Verification Loans

The Differences between Short Term Loans & Long Term Loans

Image from Pixabay

1) The Approval Process

Generally, short-term loans have a quicker application and approval process. Since they are a shorter commitment, lenders may be more willing to approve a short-term loan than one they would be stuck in for close to a decade. For both types of loans, the lender wants to make sure that the borrower can pay them back but it is less risky when the loan is only for several months. Due to the quick approval process, short-term loans tend to be better if you need money sooner rather than later. Also, thanks to the shorter time commitment, short-term loans tend to require less documentation to prove you will pay the loan back.

While long-term loans require more documentation to prove to the lender they want to be in a long-term agreement with you. Having to look through more documentation and having to do more research into whether you are a responsible borrower will make the approval process take a lot longer.

Finally, short-term real estate investment loans tend to have much higher approval ratings. Since it’s a shorter commitment, people are much more likely to approve a borrower who has a bad credit history or not too much of one. They may instead ask for collateral but regardless the approval process is easier. Conversely, a long-term loan is a longer and harder approval process. The lender tends to really look at all the details and thus has a much lower approval rate.

Image from Pixabay

2) Interest Rates

For a short-term loan, borrowers will be more likely offered high-interest loans. Due to the short application process and the fact that it tends to be more lenient and flexible, private lenders tend to offer short-term loans with significantly higher interest rates. This is why for short-term loans you want to shorten the repayment period as much as possible. You don’t want to spend 2 years repaying a loan with high-interest rates. Think more about paying it off in months rather than years.

With long-term loans, you are more likely to receive a lower interest rate. The lender has done a lot more research on you, they think they know you will pay off the debt so they are more likely to offer you a lower interest rate. However, make sure to calculate the math, you may end up spending a lot more money over many years with a small interest rate than a much higher interest rate over a few months. For long-term loans, the lower interest rate with a much longer repayment timeline can cost you in interest rates as much as your initial loan was. So with interest rates you want to be careful and to do the math.

3) Loan Payment Schedule

Due to the nature of short-term loans, which are over a much shorter time period, payments may be needed much more frequently. If the loan is only for a few months, then the repayment may be biweekly or more frequently. On the other hand, if it’s a long-term loan, you may not be paying monthly but every few months or every quarter. Thus, if you don’t have a steady income at your company, it may not be a good idea to do a short-term loan because you can’t make all the frequent payments.

Image from Pixabay

4) Amount of Money

With a short-term loan, you are more likely to be only able to borrow a smaller amount of money for your loan scenario. Since the real estate investor needs to repay the amount of money in a short period of time, it is unlikely that a lender would be willing to lend a large amount of money. Since a larger amount of money carries a larger risk, a private mortgage lender will be hesitant to offer you more than a smaller amount. While with long-term loans, lenders know more information about you and so would be more likely to increase the risk and lend you more money.

What’s better for your investment property? Long Term Loans or Short Term Loans?

There is so much to know when it comes to loans so it’s important to educate yourself on all the pros and cons before making any decisions. Make sure to be cautious before you agree to anything.

Each loan scenario is different based upon the borrower’s credit score, investment experience, liquid assets, and reserves. The loan will always be structured or calculated based upon those results.

The best way to discover which is better for your investment property is to contact a direct private money lender to assist you with the purchase of your investment property.

Michael Mikhail, CEO Stratton Equities

Michael Mikhail is the Founder and CEO of Stratton Equities, the nation’s leading hard money-lender to national real estate investors, with the largest variety of mortgage loans and programs nationwide.

Having launched Stratton Equities in early 2017, Michael has always been an entrepreneur and innovator in the real estate market, purchasing his first home at 19.

A serial entrepreneur with a foresight for business opportunities, Michael had a slew of small businesses prior to launching Stratton Equities. One of his most prolific ventures was a car wash connected to a gym he was affiliated with in Florida during 2001-2002 while attending college.

It wasn’t until he graduated from Florida State University with a degree in Business, that he officially joined the mortgage industry in 2003 and decided to travel to explore his options globally.

After travelling to 19 countries in 5 years, Michael knew two things; he wanted to start his own business and launch it in the United States. He knew that moving back to the states was the best place he could start something small and grow it into something infinite.

In 2017, Michael noticed how the mortgage industry had transformed after the regulations presented from 2008-2012, and knew it was time to set out something on his own, thus creating Stratton Equities.

Under Michael’s leadership, Stratton Equities has grown into one of the biggest leaders in the Mortgage and Real Estate industry across genres and platforms.

How To Create Passive Income As A Private Money Investor, Potentially Making Double Digit Returns!

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Image from Pixabay

By Gary Massari

About Gary: Gary and his partners build luxury homes in the San Francisco Bay Area, and sell them for $1,800,000 to $4,500,000, making substantial profits for the benefit of their investment partners. What makes Gary’s homes sell for top dollar in any market and produce such high returns will be covered in this article and at Realty 411’s expos events.

About Creating passive income: When your money starts working for you, then you can stop working for money! Creating wealth is great, and allows you to contribute your earned income to acquire income-generating assets. Passive income, when structured properly, is the fastest way to financial freedom.

Image from Pixabay

On my radio show, called “The Bridge”, I had the opportunity to interview Robert Kiyosaki, who taught me an amazing lesson about building wealth. He said, “Financial independence is making enough passive income to cover your monthly obligations.” I f you make $10,000 passively per month and your obligations are $10,000 a month, you are financially free. That simple statement changed my life and simplified my goals by making them believable and attainable.

I thought to myself: if I could make $100,000 on each home I flipped, and put $50,000 down on rental property, I could create a $500 net monthly cash flow. I would only need 20 rentals to meet my goal of $10,000 a month. Then, as I started making $150,000 to $500,000 on my flips, I could buy nicer homes in nicer neighborhoods and net $1000 a month of cash flow.

My thinking changed when I started making over $500,000 on my flips. I wanted to invest more money to create more passive income so I could improve my lifestyle and travel more – but the most important reason is that I want to leave my wife in a financial position where she can live any life she wants without worrying about money. I wanted to increase our business, so I set a goal to double itin the next 3 years, which meant building 7 to 10 luxury homes and thus increasing our revenues to $25,000,000 and our profits to over $3,500,000 annually.

We are able to grow our business so quickly thanks for our financial partners. We offer our investment partners 10% interest on their capital investment and up to 10% of the profit. This return is so attractive that I started investing in our own homes so we could get the same returns as our private money investors!

My favorite quote is: “success is just one step outside your comfort zone,” and for many of us, that step is pretty big! It is scary to step out, for fear of losing what little we gained. I always lived with the fear of being homeless, but I want to share this one little story that set me free of negative thinking.

Image from Pixabay

At the time, I was a managing partner in a mortgage company with 58 branches and 1200 loan officers, working with my first real estate mentor, Glenn. He came into my office and said, “Gary, what is your dream?” To which I said, “to retire with a $50,000 a month cash flow.” He responded, “Why are you capping yourself? You are capable of retiring with a $2,000,000 to $3,000,000 a year cash flow.”

So often, we lack belief in ourselves and think that it will never happen for us. Yet I stand before you as a witness – and wealth was never my goal, not even an afterthought! Did I ever believe I would build $4,500,000 luxury homes, making close to $1,000,000 profit on one home? Of course not! But now my thinking has changed, and I am building 7 to 10 of those homes a year – and now I am thinking about building 50 to 75 homes in a retirement community.

The mind is a crazy thing – it can keep us broke, or create a path of success to achieve our greatest goals. It all starts with a dream. And the funny part is, it takes just as much energy to dream big as it does to live small…

Here is a picture and a link to the newest home we are building: https://reifortunes.com/showcase-of-1637-greenwood-ave/ It is being offered at $4,500,000 off-market right now, and the best part is that we are 2 months from completion and already have buyers looking and offers coming in!

Our Realtor(R) brings us off-market homes to renovate and will be speaking with me at my next expo.

If you are interested in learning more about our company as we scale up our company, just set an appointment here: https://reifortunes.com/appt/gary-massari/

In our meeting, I will break down how I find homes, grow partners, create a team, and build luxury homes. You can learn more about me and my company here: https://reifortunes.com. Here is a short summary of how we do things. Our financial partners have been able to build capital in a very short period of time, making higher-than-market returns. Once they’ve built up enough capital, we encourage them to invest in rentals — residential or commercial —and we have the resources to help them. One of my favorite companies that helps people find rental properties in high growth areas is www.RealWealthNetwork.com. The CEO, Kathy Fettke, is the author of the book, Retire Rich with Rentals on Amazon – it’s a great read!

Here is the short summary of how we get such high returns:

Image from Pixabay

Step #1: We work with top producing Realtors(R) who work with high end builders or flippers. They find the off-market deals and bring them to us in exchange for the listing rights. Most of our homes, when completed, sell off-market. Please do not share this strategy with others, as you will create competition in your area. Our Realtors(R) make commissions of $2,000,000 to $3,000,000 a year and sell most of their homes off-market.

Step #2: We have a vision for the end product. When Greenwood was brought to us, the builder (owner) got in trouble for being over-extended and sold it to us to pay off his loan and make a little money. Unfortunately for him, he did not have the vision of a $4,500,000 home, and we did! We saw that this home could be extended to 3100 sf. from 2500 sf., taking the value of this home from $3,700,000 to $4,000,000. The additional value is my trade secret, and will only be shared in a personal meeting. You can book one here: https://reifortunes.com/appt/gary-massari/ or give me a call at 925-451-1619. Because of the many calls I get, I have a call filter so make sure to leave a message, and I will return your call.

Step #3: We find an architect who is current in designs and trends. In the current market, the “Modern Farmhouse” is a hot commodity. We have signature designs for both the exterior and interior, which we will share in a personal meeting.

Step #4: We split the contractor crews to have construction going on for the exterior and interior at the same time. This alone saves time and money.

Step #5: We complete the exterior first, including landscaping. This leaves two months to completion, which is our off-market time.

By sharing these steps with our financial partners, we give them the confidence that we have a well-oiled machine, with a contractor who is an owner in our company and on the job every day. Our crew is amazing, fast, and skilled at building homes in half the time other builders do.

Unfortunately, we can only partner with people with whom we have a prior relationship. So let’s get to know each other! If you are interested in learning more about our company,  book an appointment with me here: https://reifortunes.com/appt/gary-massari/ 

Happy Investing!

Gary

Gary Massari

Leading REI Coach & Trainer

Gary Massari is best described as a man with a long and successful past!  He is a top real estate investor and trainer who ran a successful peak-performance school and trained over 3000 realtors, investors and loan officers to become top income earners. He was also the managing partner of the largest mortgage brokerage company in northern California. Then there were his years as a co-host on the very popular radio show in the San Francisco Bay area where he taught financial literacy to over 25,000 weekly listeners.

Gary helps to build his students, followers, and team members their own unique master plan to achieve their REI Wealth.

He’s also a best-selling Amazon Author in four different categories, with more than 300 published works and the founder of Make Money Now Real Estate Investors. If there’s anybody in the know, it’s Gary. In fact, through Gary’s mentoring programs, he has had students become millionaires and build their own fortune 5000 companies.

But what makes Gary tick?  Gary believes that a person’s success requires a few things:  Hands on mentorship, community, education & local support.  He has built an entire REI club and network around those concepts. 

For Gary it’s about giving the full experience to the student so they can actually get out there and succeed.  One of his single-most sought after programs is the “Ultimate Master Plan for Real Estate Investors”, which contains many parts that help one become a master of their own life and their own investments.  His goal for you is to retire debt free, mortgage free and wealthy.

Gary breaks your master plan down into these critical areas:

  • A Personal Budget
  • Debt Retirement Including Mortgage Debt
  • 5-Year Income Plan
  • A Real Estate Purchasing Schedule for properties and notes
  • A Net Worth Balance Sheet to measure their wealth as they grow it.

One key service that Gary offers is his national REI Club where he provides to his membership all the key components of success that are so important to him: Hands on mentorship, community, education & local support.  And his education is always exciting, thorough and top notch!  Just look at some of these workshops:

  • How to find hidden deals and beat your competition to the Bank,

How to build their net worth and a create a debt free mortgage free retirement.

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411.com or our Eventbrite landing page, CLICK HERE.

You’re Invited to A Houston Property Tour

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Dear Real Estate Investors,

It has been a while since we have taken a group of investors out to Houston to take a look at our Manufactured Homes, but it’s that time again and we are excited to finally be able to invite you out with us!

Investment Tour Information
Houston Manufactured Homes Tour
January 19th – 21st, 2021
(8-12%+ Cap Rate) Opportunities

Come with us to Houston as we take our investors on a tour of these manufactured homes. We will show you how we are able to generate an 8-12%+ cap rate from these properties and show you first-hand how the pandemic has affected this city.

Investors will also get a chance to speak with our property management team to get a thorough understanding of how these homes are maintained and what our teams do to keep them occupied.

Investment Tour Information
Houston Manufactured Homes Tour
January 19th – 21st, 2021
(8-12%+ Cap Rate) Opportunities

So join us, and let us show you why we are so passionate about these homes and the city of Houston. To sign up, click on the link below, or for more information feel free to email us at [email protected], or call us at 626.551.4326. We look forward to seeing you on our tour!

Sincerely,
TFS Properties Team

Realty411’s Silicon Valley Investor Wealth Summit – Network In-Person Again

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Learn the latest new niches and insight in real estate, plus connect with influential investors from across the nation!

Join Us at Realty411’s Silicon Valley Investor Wealth Summit


Guest will discover the benefits of real estate investing, plus learn to expand their existing portfolio.

Learn the latest new, niches and insight in real estate, plus connect with influential investors from across the nation in San Jose, California. Realty411‘s Silicon Valley Investor Wealth Summit will be held on Saturday, FEBRUARY 26TH, from 9 am until 5 pm.

This complimentary one-day event hosted in the heart of San Jose, the tech center of the nation, is designed to foster a premiere networking environment for real estate investors, brokers/agents, entrepreneurs, private lenders, mortgage originators, business owners, real estate educators, and interested individuals ready to learn to invest.

Other events charge hundreds of dollars, but this day is truly PRICELESS.


Learn to Start or Grow a Rental Portfolio — We Own Millions in Real Estate and So Can YOU.

Our mission is simply to provide real estate resources so that others can also learn about the benefits of long-term real estate investing, in and outside of California.

Since 2007, Realty411.com, the home page of Realty411 magazine, has been the leader in REI resources for real estate investors around the nation, as well as our readers internationally. Join us and network with industry leaders right in the heart of America’s technology industry: Silicon Valley.

OUR COMPLIMENTARY CONFERENCE HAS BEEN THE #1 REAL ESTATE INVESTING SOURCE IN SILICON VALLEY FOR 15 YEARS

This is your chance to learn in-person again in a safe, sanitized, and socially-distanced venue. What can you expect?

  • Meet Local + Out-of-Area Investors
  • Learn from Leaders & Industry Pros
  • NON-Stop Tips for Real Estate Success
  • Meet TOP Leaders in Real Estate Investing
  • Bring Numerous Business Cards & Connect
  • Both Local & National Experts in Attendance
  • Meet Others with Common Goals and Mindsets
  • Learn with long-term leaders in the REI Industry
  • Receive the latest REI Knowledge from Real Investors
  • Save money with Realty411VIP.com‘s Merchant Discounts
  • Network with Other Professionals in the Real Estate Industry
  • We Have Been Sharing Life-Changing Information for 15 Years

*The agenda for this event, as well as details about our educators, will be released soon – register to receive updates.*

Realty411 magazine is based in the beautiful Central Coast of California: Santa Barbara County. Since 2007, we have dedicated our time, resources and energy to help expand real estate knowledge and education by providing complimentary magazines and expos to the general public.

Learn more about Realty411 at:

http://realty411.com or http://realty411guide.com or http://realty411expo.com

Our second publication, REI Wealth, was specifically developed and designed for online readership.

Learn more about our digital-friendly publication, which is now also available in print: http://REIwealthmag.com

Guests can enjoy complimentary copies of both publications at this special one-day Silicon Valley Investor Summit.

Realty411 Has Helped Investors Grow Their Portfolios Since 2007

Realty411 magazine was first published in 2007 and is now the longest-running publication owned by the same owner. Based in Santa Barbara county, Realty411 has reached thousands of readers and online followers in person with their national events. Realty411 has hosted events in 12 states reaching thousands of readers.

In 2020, when the pandemic began, Realty411‘s virtual events began with much success.  Since then, Realty411 has reached close to 10,000 investor/readers across the nation. Realty411‘s publisher and founder, Linda Pliagas, has over 17 years experience as an active real estate agent in the State of California (CA DRE #01355569), plus a bachelor’s degree in journalism from California State University, Long Beach.

Linda has implemented creative real estate investing strategies since “Day One” — She purchased her first property in Los Angeles with zero down by uniting private capital and a traditional mortgage wrapped with a seller-financed second trust deed. Currently, Linda and her family own and manage a multi million-dollar portfolio of rentals, in and out of state. Linda has been a landlord consecutively for over 20 years and has owned rentals in five states (California, Arizona, Texas, New Mexico, and Louisiana).

Please check back here or Realty411.com for regular updates on how we are coping with the new norm of “social distancing”, thank you. We are abiding with all CDC guidelines and State of California mask mandates for this event. Realty411 will continue with more events throughout California and around the nation in 2022.

For information about speaking or sponsoring an exhibitor booth, please contact us at: 805.693.1497.

3 Events, 2 Magazines, Plus a Festival of Deals

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You’re invited to our industry events and to explore our Realty411VIP savings’ website.

Event #1 – Virtual Webinar

Use it or Lose it: The Countdown for Year-End Tax Planning Begins…

Where did the year go?

With 2021 coming to an end, are you prepared from a tax strategy standpoint?

It’s no secret that saving taxes accelerates wealth and compresses your time frame towards financial independence. But what are the best strategies to accomplish this? And when should it be implemented?

Tax consultant and Real Estate industry specialist, Tony Watson of Robert Hall & Associates will share the best tax-saving strategies that investors should know.

Some of the topics he’ll discuss are:

  • Why is it important to know my tax situation by the end of the year?
  • What is a W4 review?
  • Top 5 tax write-offs
  • Deductibility of mortgage interest: how much does it really save?
  • Do I have to make estimated tax payments?
  • 401K/IRA vs. self-directed IRA/Solo 401k
  • Understanding President Biden’s wish-list of tax changes

Event #2 – Virtual Weekend Summit

VIRTUAL HOLIDAY REI SUMMIT:
Celebrate and LEARN LIVE with Us

Investors: Let’s Recap Real Estate in 2021 & Get Ready for 2022

Prepare for a Wonderful Weekend of Investor Education, Deal Funding & Joyous Cheer!

Investors, a solid two days of education, deal funding, and extreme motivation awaits on Saturday, December 11th and Sunday, December 12th. Reserve the weekend now, and prepare for a special complementary virtual summit.

Realty411 will again unite the most successful, knowledgeable and savvy investors in the REI (Real Estate Investing) industry to help our readers make educated and informed decisions. We’ll also recap the biggest economic stories of 2021, plus prepare for 2022.

Realty411’s Holiday VIRTUAL Investor Weekend Summit will begin at 9 am PT until 2:30 pm PT. Our virtual event is only half day in consideration of the busy holiday season. Our online event is complimentary to attend. Sorry no replays, this is a LIVE CONFERENCE for dedicated investors of all levels.

Joining us on this special conference to help guide our readers will be top industry experts ready to spill their secrets of success. Get educated, motivated and prepare for an amazing 2022 and beyond.

Restore or Elevate Your Credit Score + Find Funding Here!

* Additional educators to be announced shortly, thank you.

Thank you in advance for supporting our sponsors.

Event #3 – In-Person Expo in Silicon Valley

Get Your Investing & Tech Game On
Learn REI in San Jose with Experts

Join Us at Realty411’s Silicon Valley Investor Wealth Summit

Guests will discover the benefits of real estate investing, plus learn to expand their existing portfolio. A special focus on technology in REI.

Learn the latest niches and insight in real estate, plus connect with influential investors from across the nation in San Jose, California. Realty411’s Silicon Valley Investor Wealth Summit will be held Saturday, FEBRUARY 26TH, beginning at 9 am to 5 pm.

This complimentary one-day event hosted in the heart of San Jose, the tech center of the nation, is designed to foster a premiere networking environment for real estate investors, brokers/agents, entrepreneurs, private lenders, mortgage originators, business owners, real estate educators, and interested individuals ready to invest or grow their portfolio.

Thank you in advance for supporting our sponsors.

FREE Downloads: Read our latest two magazines filled with fantastic resources

Thank you in advance for supporting our sponsors.

Use it or Lose it: The Countdown for Year-End Tax Planning Begins…

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Welcome! You are invited to join a webinar: Use it or Lose it: The Countdown for Year-End Tax Planning Begins…. After registering, you will receive a confirmation email about joining the webinar.

Where did the year go? With 2021 coming to an end, are you prepared from a tax strategy standpoint? It’s no secret that saving taxes accelerates wealth and compresses your time frame towards financial independence. But what are the best strategies to accomplish this? And when should it be implemented? Tax consultant and Real Estate industry specialist, Tony Watson of Robert Hall & Associates will share the best tax-saving strategies that investors should know. Some of the topics he’ll discuss are:

  • Why is it important to know my tax situation by the end of the year?
  • What is a W4 review?
  • Top 5 tax write-offs
  • Deductibility of mortgage interest: how much does it really save?
  • Do I have to make estimated tax payments?
  • 401K/IRA vs. self-directed IRA/Solo 401k
  • Understanding President Biden’s wish-list of tax changes

Register now!

To learn more about Robert Hall & Associates, visit: www.roberthalltaxes.com

Dec 2, 2021 01:00 PM in Pacific Time (US and Canada)

A Home for Your Money

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Image from Pixabay

By Brent Kesler

Think about this: your wealth has to live somewhere. It must have a home.

Let’s take a trip back to your childhood. Think about your family. Your street. Your yard. Your room. But, mostly, picture your home. Undoubtedly, we all went to school somewhere, had friends around the neighborhood, and maybe spent time at the library or playground. To have a full-life experience, you had to leave your place of residence almost every single day. But, when the sun set, you hopefully had a familiar place to call home.

Now, think about your money. Since money is just a means of exchange for stuff that you need to enjoy your life, you keep it somewhere safe to trade for products and services you enjoy, right? Where does your money live? Let’s compare the three places that most of the money around the world calls “home.”

Image from Pixabay

Pocket – Many people use their pocket, their wallet, or a jar for their money. I dare say that most of humanity keeps their cash or coins somewhere close to them physically, where they can keep an eye on it, and quickly exchange it for life’s goods. Even in America, in the 21st century, this is a common practice. In this case, their money flows to others so quickly, that there is no chance to save or invest any of the wealth. Would you ever picture the wealthy hiding their money under their bed or in a safe in the closet?

Image from Pixabay

House – Millions of people in the Western world keep much of their wealth in the actual possessions they buy. You’ve probably heard time and again about middle America “investing” in their home and the equity they try to accumulate. The average family’s most expensive purchases are the houses that they live in, or the cars that they drive, etc. We are all into creature comforts, and so we do need to physically reside somewhere. For generations, Americans have been taught to invest in their home because of the “evils” of renting, and the near “guaranteed” growth in value of their house over time.

Image from Pixabay

Conventional Bank – Most American families keep all their liquid cash assets in a conventional bank. At The Money Multiplier, we educate average people about how profitable the banking business is, and how much the Wells, TD’s, and “B of A” big boys are profiting from the money that we all leave there every day. Banking is a massively profitable operation and banks are making anywhere from 400%-1300% on any cash they have deposited into their coffers according to bauerfinancial.com.

Now, where do you WANT your money to live?

After teaching families about the wealth that is being created every single day, month, quarter, and year at conventional banks, The Money Multiplier Mentors will open eyes of our members to the advantages of taking control of the banking function in their own lives. What if YOU owned, controlled, and even profited from the banking function in your life? Well, you can, and we are helping folks accomplish that every day, around the clock. When your money has its home in the The Money Multiplier Method system, no matter where you send or spend your money (debt, monthly expenses, or even investments) your money always have a safe place to return “home,” have guaranteed growth, create tax minimization, be recaptured when you spend it, and leave a legacy when you’re gone! Around here, we are having our cake, and eating it over and over again!

Remember, The Three Rules:

1.) Pay Yourself First

2.) Pay Yourself with Interest

3.) Recycle and Recapture your Money

www.themoneymultiplier.com

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411.com or our Eventbrite landing page, CLICK HERE.

Realty411’s Holiday VIRTUAL Investor Weekend Summit – RSVP Now

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Prepare for a Wonderful Weekend of Investor Education, Motivation & Good Cheer!

Readers are invited to a virtual weekend of solid education and extreme motivation on Saturday, December 11th and Sunday, December 12th. During this special online event, investors will also have access to capital for their real estate transactions and have all their questions answered.

Reserve the weekend now, CLICK HERE, and prepare for a special complimentary virtual summit.

Realty411 will unite some of the most successful, knowledgeable, and savvy investors in the REI (Real Estate Investing) industry to help our readers make educated and informed decisions.

This special Holiday VIRTUAL Investor Weekend Summit will begin at 9 am PT until 2:30 pm PT. Our virtual event is only half day this time in consideration of the busy holiday season.

Joining us on this special conference to help guide our readers will be top industry experts ready to spill their trade secrets of investing success.

Get educated, motivated and prepare for an amazing 2022 and beyond.

Please note: Recordings will NOT be made available later, this is a LIVE CONFERENCE for dedicated investors of all levels.

Normally, virtual events of this caliber are hundreds of dollars to attend (REALLY), but Realty411 is making this special weekend conference complimentary for investors of all levels who have a sincere desire to begin and/or expand their real estate holdings.

TO RSVP – CLICK HERE

With nearly 15 years experience in hosting in-person and virtual real estate industry events, in 12 states so far, our guests can rest assured that only the best companies and professionals in the industry are invited.

WHAT TO EXPECT: Learn Strategies for Rehabbing – Discover Hot Markets for Buy-and-Hold Investors – Hear About Our Biggest Mistakes & How to Avoid Them – No Fairy Tales – Honest, Real & Raw – Join Us

Learn more and RSVP for Realty411’s Holiday VIRTUAL Investor Weekend Summit here:

https://us02web.zoom.us/webinar/register/WN_JBfXNeQATKOCXGqKhDCc6A

TO RSVP – CLICK HERE

*This post will be updated with additional details. Please check back for more information.

Supercharge Your Real Estate Investments with Self-Directed IRAs

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Image from Pixabay

By Alex Sylvia

When most people hear the term Individual Retirement Account, or IRA, thoughts of mutual funds, bonds, and ticker symbols typically flood the imagination. Contrary to popular belief, those types of investments are not the only assets that can experience the tax benefits of an IRA.

Whether you have a Traditional IRA (investments grow tax-deferred) or a Roth IRA (investments grow entirely tax-free), both can be invested into a nearly unlimited variety of assets, including real estate.

Conventional IRA providers, such as Fidelity or Charles Schwab, certainly have their place in the Individual Retirement Account market. No one here is arguing that stocks, bonds, and mutual funds don’t have their place in a retirement portfolio. To the inexperienced investor, having a portfolio managed by an advisor may be the risk-averse avenue they should take.

Frankly, we’re not inexperienced investors. We are, oftentimes, experts in our field and [up until this point] we just didn’t realize that our retirement funds could be invested in assets that we already know and with strategies we’ve already mastered.

To invest in real estate using an IRA, a Self-Directed IRA is needed. A NuView SDIRA is no different than an IRA offered by the Fidelitys and Charles Schwabs of the world (in terms of the rules governing them), but where the difference lies is in the custodian of the account. Those previously mentioned custodians have their own investments that they are trying to sell the investor to make commissions, but an SDIRA custodian lets their investors choose their own investments.

Whether it’s fix-and-flips, rental properties, real estate options, or passively investing through secured promissory notes, each of these types of real estate investments can be supercharged with a NuView Self-Directed IRA. Imagine NOT having to pay capital gains tax on your investment returns. Imagine being able to RE-DEPLOY that capital towards your next investment opportunity. Imagine the power of compounding your gains WITHOUT having to pay Uncle Sam each year.

The year-over-year returns can very likely eclipse what you could expect with the same deal outside of a tax-advantaged IRA.

You might be thinking that a 1031 Exchange can get rid of capital gains tax as well, but frankly, that is incorrect.

Yes, a 1031 Exchange can defer capital gains tax and may put you in a position to only pay long-term capital gains tax rather than short-term, but what if I told you that there is a way to completely ELIMINATE capital gains tax altogether?

No 45-day rule, no 180-day rule, no “like-kind” provisions, and most importantly, no day of reckoning where you’ll still have to cut a check to Uncle Sam, paying capital gains tax and ultimately suffocating your growth potential.

Image from Pixabay

Keep in mind that the investor is now the IRA entity, not the person themselves. All deposits, closing costs, and expenses are paid from the Self-Directed IRA. Similarly, all revenue and appreciation flow into the Self-Directed IRA.

Since money must flow to and from the NuView SDIRA, it is critical that the account be established prior to finding the investment property. To refrain from making any “prohibited transactions” – such as personally putting money down for a 100% IRA-owned property – it is required that any deposits put down on an investment property come from the SDIRA. Making a prohibited transaction typically causes a taxable event, penalty, and possible distribution of your entire IRA (see IRS Code 4975 for more details).

To avoid this mistake, establish your NuView SDIRA before you find your investment property, and at least have it funded with enough money for a deposit. Once the property is under contract, you can begin the transfer or rollover process to move the rest of the needed funds into your account.

While this strategy of buying investment properties in a retirement account does restrict you from taking personal payment from your investment growth, you could still consider making short-term investments personally, and putting your long-term investments in a tax-advantaged vehicle like a Self-Directed IRA.

Keep in mind, however, that if you make your real estate investments in a NuView Self-Directed Roth IRA, your investment earnings and any interest gained needs to remain in the account until the age of 59.5, but you can always personally withdraw your after-tax contributions at any time, tax and penalty free. Some circles liken the Roth IRA to a “savings account on steroids” because of this feature.

But what can be accomplished with a $6,000 contribution limit per year ($7,000 if you’re over the age of 50)? The answer is – quite a lot. If you’re a seasoned real estate investor with experience using leverage, real estate options, or buying debt-leveraged property, you may be able to accomplish a lot with those low contribution limits.

However, if you happen to be self-employed (which many real estate investors are), you qualify for a handful of employer plans that have much higher contribution limits but are only available if you have self-employed earned income.

Some examples of employer plans would be a SEP IRA or Solo 401k (soloQRP), each with a maximum contribution limit of $58,000, or a SIMPLE IRA with a maximum contribution of $13,000.

If you are not self-employed and wouldn’t qualify for these plans, you also have tools at your disposal to get involved with SDIRA real estate investments.

Image from Pixabay

One option would be partnering. This could be partnering with other retirement accounts you have or with a family member’s or friend’s IRA. Another option would be getting an IRA loan, also called a “non-recourse” loan. Either one of these options could provide you with the buying power you need to leave the stock market behind and invest in tangible cash-flowing assets.

Now, to the real estate investor or syndicator who’s just in the market for other people’s money to fund their personal real estate deals, IRAs are one of the largest buckets of money available to source capital from. Since it is well within the bounds of IRS rules and regulations, IRA funds can be loaned to other individuals (such as real estate investors) or entities (such as syndications).

On that note, if you are an investor who wants to get involved in real estate without doing the heavy lifting, lending your IRA funds to a real estate investor or syndication may be the route for you.

At the end of the day, if you or someone you know is unhappy with their stocks, bonds, or mutual funds, be aware that the capital can be redeployed towards a TANGIBLE cash-flowing asset.

Investing outside of the stock market can help you or others reach the pinnacle of true diversification, and what better way to do so than taking a skill set you already have and applying it in a tax-sheltered environment like a NuView SDIRA?