Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Realty411 Featuring Tom Wilson from Wilson Investment Properties - DRAFT ISSUE


Published on

Guess what? Our LARGEST issue to date is right here! Realty411, the nation's longest-running investor magazine owned by the entrepreneur/investor/agent, is coming at you with all new resources, strategies, and tips to take your portfolio to a whole new level of success.

Published in: Real Estate
  • Be the first to comment

  • Be the first to like this

Realty411 Featuring Tom Wilson from Wilson Investment Properties - DRAFT ISSUE

  1. 1. INSIDE: STRATEGIES FROM TOP LEADERS + FINANCE RESOURCES INVEST WISELY Learn to Protect Yourself from Harm How to Diversify to Avoid Risk & More Vol. 6 • No. 2 • 2016 TOM WILSON GOES TRIPLE NET Discover How a Silicon Valley Engineer Amassed an Eight-Figure Texas-based Real Estate Portfolio
  2. 2. • Kansas City, MO Starting in the Mid $60’s Cap Rate 9% Strategy: Cash Flow & Appreciation Cash Builder Fix-and-Flip Opportunities Cap Rates 14% Starting in the Mid $40’s Cash Flow & Appreciation Starting in the Mid $60’s BLACK BE Education • Mentoring NATIONWIDE TURN-KEY REA Cash Flow + Appreciation + Tax • Cleveland, OH Starting in the Mid $40’s Cap Rate 14% Strategy: Heavy Cash Flow & Appreciation • Indianapolis, IN Starting in the Mid $60’s Cap Rate 9% Strategy: Cash Flow & Appreciation (951) 28 BlackBeltInv Mentoring • One-on-one Coaching in Building, Setting and Achieving Your Goals Fix-n-Flip Opportunities Offered in Phoenix, Arizona Call Us for More Information
  3. 3. LT INVESTORS • Nationwide Investments AL ESTATE INVESTMENTS Benefits = Wealth Builder • Phoenix, AZ Starting in the Upper $70’s Cap Rate 3% - 5% Strategy: Appreciation • Toledo, OH Starting in the Low $40’s Cap Rate 12% Strategy: Cash Flow  0-1900 Real Estate Education for Investors • KickStart 101 – How to Create Cash and Wealth Through Real Estate • Wholesaling – Flipping Houses for Quick Cash • Master’s Program In the Field Wholesale Training • Rehabbing – Making Huge Profits • Purchase Options – The Best Creative Financing Strategies • Joint Venture – Developing Strategic Alliances • Business Training – Quick Start Entrepreneurs • Real Estate Investor Club – Monthly Meetings to Stay Engaged •We locate properties that are not available on the MLS to find our clients the absolute best deals!
  4. 4. PAGE 5 • 2016 PUBLISHER Linda Pliagas BRE #01355569 LEGAL COUNSEL Boesch Law Group CONSULTANTS Steven Kendis, GRI Hector Padilla, GRI ADVERTISING Ryan Gay Jason Burke EDITORIAL STAFF Lori Peebles Robb Magley Tim Houghten Stephanie Mojica COPY EDITOR Stephanie Mojica PHOTOGRAPHER John DeCindis Realty411 Wealth Real Estate Questions? 805.693.1497 or 310.499.9545 Realty411 / reWealth magazine is proudly published from Santa Barbara County, Calif. ©Copyright 2015. All Rights Reserved. Reproduction without permission is strictly prohib- ited. The opinions expressed by writers/columnists are not endorsed by the publishers. IMPORTANT DISCLOSURE: Publishers and staff are not responsible for performing due diligence on the opportunities offered by magazine advertisers and expo sponsors. Be- fore investing in real estate seek the advice of your trusted financial advisor, attorney or tax consultant. BEWARE: Real estate investing is risky and may result in loss of capital. PRINTED IN THE USA — GOD BLESS AMERICA Connect to our virtual network online: Join Our Network: • $25k - $250k in business or personal lines of credit • 24 Hour Pre-Approval • 0% interest for up to 24 months • Get Your Lines of Credit in 14 to 21 Days! MONEY FOR SMALL BUSINESSES AND PERSONAL LINES OF CREDIT The biggest challenge start up businesses and individuals have is obtaining funding. Our program helps businesses and individuals get up to $250k in unsecured cash credit lines all the time. If your FICO credit score is 680 or higher, we can probably get you funding. Fill out the short questionnaire on to get started. FAST PROCESS (480) 626-1772 PUBLISHED BY Pliagas Enterprises PRESIDENT Nikolaos K. Pliagas COLUMNISTS Kathy Fettke Randy Hughes Sensei Gilliland Leon McKenzie PRODUCTION Lisa Walker WEB MASTER Victoria Landis MARKETING Kasey Barrett EVENTS & EXPOS Monica Werle Anthony Patrick Lawrence Ruano Michael Ringwald DISTRIBUTION To receive complimentary copies for your club, real estate office or business, please call 310.499.9545 ADVERTISING 805.693.1497 | RustyTweed CertifiedEstateAdvisor Lookingforways toincreaseyour investmentincome? Wehaveexperiencedadvisors toansweryourfinancialand investmentquestions... l 1031 Exchange properties available Tweed Financial Services, Inc. Financial & Estate Planning for Real Estate Investors (626) 588-1520 2060 Huntington Drive, Suite #1 San Marino, CA 91108 Call800-526-1599ext.106orenrollonline: Meal included, provided by our sponsors. Seating limited to experienced investors. Reservations required. Aswithanyrealestateinvestmenttherearevariousrisks,includingbutnotlimitedto:illiquidity,limitedtransferability,and variationinoccupancywhichmaynegativelyimpactcashflow,andevencausealossofprincipal.RealEstatevaluesmay fluctuate based on economic and environmental factors and are generally illiquid. This does not constitute as an offer to buyorsellanyrealestate,securitiesorinsurance.Suchoffersareonlymadebyprospectuswhichshouldbereadthoroughly and understood before investing. Prospectuses will be available at the workshop. CA Insurance License #OB13052. We do notprovidetaxorlegaladvice. SecuritiesofferedthroughCabotLodgeSecurities,LLC(CLS).MemberFINRA/SIPC.Advisory Services offered through CL Wealth Management, LLC (CLWM), an SEC Registered Investment Advisor. Tweed Financial Services,Inc.isnotcontrolledbyorasubsidiaryofCabotLodgeSecurities,LLCorCLWealthManagement,LLC. Register for our next Investment Strategies Workshop hosted by Tweed Financial Services, Inc.
  5. 5. When the clock is ticking, the last thing you need is to get tripped-up in red tape and paperwork. Relax. At Civic, you’ll get in-house appraisals in just 24-48 hours and funding in as little as 4-10 days. As a direct lender with access to our own capital, Civic provides up to 75% LTV of as-is value with no minimum FICO requirement. Got a project in mind? Call us at the number below. We’ll show you how to beat the clock. Corporate Headquarters 2015 Manhattan Beach Blvd, Suite 106 Redondo Beach, CA 90278 310.504.3618 / • Funding in 4-10 days • Up to 75% LTV • No minimum FICO • 24-48 hour in-house appraisals • Competitive fixed rates • Loan amount $100K-5 Million • Foreign National program HOW FAST ARE OUR APPROVAL TIMES? LET’S JUST SAY WE THINK A 3-MINUTE EGG TAKES ABOUT 21/2 MINUTES TOO LONG. FAST APPROVALS, QUICK CLOSINGS, COMPETITIVE RATES — WHEN YOU NEED TO MOVE FAST, YOU NEED TO CALL CIVIC. ©2016 All rights reserved. This is not a commitment to lend. Restrictions may apply. LTV limit is based on current, accurate appraised value. Civic Financial Services, Inc. reserves the right to amend rates and guidelines. All loans are made in compliance with Federal, State, and Local laws. Civic Financial Services, Inc. is a California Finance Lender under NMLS 1099109 and the California Department of Business Oversight license #603L321, AZ Mortgage Broker license #092863, ID Mortgage Broker/Lender License #MBL-8288, OR Mortgage Broker License #ML-5282, and WA Consumer Loan Company License #CL-1099109. Civic Financial Services, Inc. is an equal opportunity lender.
  6. 6. pg.52 pg.13pg. 20 Todd Pigott with Zinc Financial is a leader in the private money space. Zinc uses all of their own funds to lend out, which separates them from the rest of the lending pack. pg. 25 10 Publisher’s Note: Calculated Growth Spurts 13 Is it Time for Your Next 1031 Exchange? 17 Optimal Real Estate Investment Strategies 20 Accelerate Your Financial Independence 22 Following the Money with NNN Properties 27 Sensei Gilliland Crunches the Numbers 30 Wall Street Hedge Funds Buying SFRs Again? 33 Unlimited Probate Leads for Rehabbers 37 Special Report: Fraud Alert and Protection 40 Randy Hughes Explains Land Trusts 42 The New Avenue for Financing Real Estate Assets 44 Get Organized and Grow with Propelio. 46 Changing the Game with 3D Media Tours 49 Private Money411 Features Patty Arvielo 51 Zinc Financial’s Bullish Advance in the Market 54 Building Your Pool of Private Lenders 58, a New Finance Resource 63 Patty Arvielo Leads New American Funding 66 Charlie Fitzgerald Discusses Private Money 71 Trust Deeds a Not So New Approach to Investing 74 Fuquan Bilal Reveals How to Hack the Money 83 Valuations & Worthless Assets in Your IRA 85 Special Segment: Learn from the Texas’ Experts 88 An Exclusive Interview with Shenoah Grove 91 Questions to Get Started by Dennis Henson 92 Tim Herriage on Tactical Investment & Strategy 100 Little Pink Houses with BIG Green Paydays. 102 A Q-&-A with Merrill Chandler with CreditSense 106 Drive Up Your Decking with these Ideas P R I VAT E Money411SUMMER ISSUE 2016 Over the past fifteen years, national consultant, speaker and educator, Mr. Matthew Pillmore has presented fi- nancial educa- tion nationally for and in front of countless real estate organizations. He speaks nationally on the topics of credit scoring, debt elimination, fiscal respon- sibility and strategic cash flow maximiza- tion. Mr. Pillmore has studied under the founders of the FICO credit scoring sys- tem. We have countless testimonials and references from previous REIA owners, managers and attendees that can attest to the value of the education provided by VIP Financial Education. Our Expert Speaker Photo left to right: Matthew Pillmore with VIP Financial Education shares his investment strategies and tips to expedite your financial independence. Plus, Adiel Gorel with ICG Group reveals the optimal investment strategy for our readers. PAGE 7 • 2015
  7. 7. PAGE 16 • 2016 How to Own Real Estate In this class you will learn to dominate the banks, own multiple properties,eliminate your mortgages in ten years and start with very little cash flow. Without Mortgages Learn to DOMINATE the Bank, OWN Multiple Properties, and ELIMINATE Your Mortgages in 10 Years and Start with Very Little Cashflow.
  8. 8. PAGE 15 • 2016 nks, s in ten VIP Financial Education classes teach real estate investors how to accomplish the following: • Maximize monthly cash flow and increase access to capital • Accelerate the acquisition of assets, including investment real estate • Accelerate the elimination of liabilities • Increase credit scores organically • Build emergency reserves All educational content is provided free of charge. There is no “selling from the stage” or solicitation by the speaker. The class will last approximately 50 minutes plus time for questions. VIP is not a financial advisor, nor do they sell any financial products. VIP has been providing free financial education for over 15 years and has an A+ rating with the Better Business Bureau. Over the past fifteen years, national consultant, speaker and educator, Mr. Matthew Pillmore has presented fi- nancial educa- tion nationally for and in front of countless real estate organizations. He speaks nationally on the topics of credit scoring, debt elimination, fiscal respon- sibility and strategic cash flow maximiza- tion. Mr. Pillmore has studied under the founders of the FICO credit scoring sys- tem. We have countless testimonials and references from previous REIA owners, managers and attendees that can attest to the value of the education provided by VIP Financial Education. ges Program Summary Our Expert Speaker “If you’re serious about your business this is a must see class!” Looking for Quality Education for Your Next REIA Meeting? VIP Financial Education classes teach real estate investors how to accom- plish the following: • Maximize monthly cash flow and increase access to capital • Accelerate the acquisi- tion of assets, including investment real estate • Accelerate the elimina- tion of liabilities • Increase credit scores organically • Build emergency reserves OUR EXPERT SPEAKER Over the past 15 years, national consultant, speaker and educator, Matthew Pillmore has presented financial education nationally for and in front of count- less real estate orga- nizations. He speaks nationally on the topics of credit scoring, debt elimination, fiscal responsibility and strategic cash flow maximization. Mr. Pillmore has studied under the founders of the FICO credit scoring system. We have countless testimonials and references from previous REIA owners, managers and attendees that can attest to the value of the education pro- vided by VIP Financial Education. All educational content is provided free of charge. There is no “selling from the stage” or solicitation by the speaker. The class will last approximately 50 minutes plus time for questions. VIP is not a financial advisor, nor do they sell any financial products. VIP has been providing free financial education for over 15 years and has an A+ rating with the Better Business Bureau. “If you’re serious about your business this is a must see class!”
  9. 9. Join Me On This Journey Towards Wealth with Real Estate! W hat an incredible year it’s been so far. We’ve seen our media team grow, produced expos in new cities, and welcomed news compa- nies as clients. Yet with all the activity of running a publishing business and a busy household, I still found time to make real estate offers. How about you? Are you making offers? That is the first step towards success as an investor. How are you going to enjoy financial freedom from real estate tomorrow, if you don’t make any offers today? MAKE OFFERS! It’s also crucial to make solid, loyal and long-term rela- tionships in this business. Real estate success is not based on the knowledge or efforts of solely one individual. Suc- cess as an investor is a team effort. Choose your associates wisely, and be loyal to them. I’ve seen so many people drop their broker or business colleagues or try to go around them, just to save a few thou- sand dollars. Don’t do that! If someone gives you their abso- lute best effort and invests their energy to help you become successful, you should reward them by treating them well and respecting their time. Networking is the first step to building relationships in this industry. I’ve developed many long-term friendships and partnerships from attending industry functions. So get out there and mingle and connect with other like-minded indi- viduals. The next person you meet at your local mixer can be the one who brings you the next house to rehab or helps you identify a fantastic rental. Remember: Success in a journey, not a destination. Along the way, we will meet people who can really impact our life and help us get to where we want to go. It’s so reassuring that we don’t have to go at this alone! Until next time: Make offers, go find the deals by letting people know what you do, and let us know if we can help you. We are here for you on this journey... Linda’s Letter Linda Pliagas Linda Pliagas, Publisher
  10. 10. Syndication Now Available Email: Western Crossing Class A Retail Center Invest $50K get $110k. 8% Preferred Commercial Syndication CALL NOW! ONLY $50K PER SHARE! • Fourplexes • 4548 sq. ft. • $5000 Rent • $499K • 20 mts from Downtown Ft. Worth New Construction Special! COMMERCIAL PROPERTIES • GAIN ECONOMIES OF SCALECOMMERCIAL PROPERTIES • GAIN ECONOMIES OF SCALE Return. 14% Average Annual Return Subscribe to our newsletter for KDOW 1220 AM Wed. @ 2pm. (408) 867-1867 Saratoga, CA 95070 FOURPLEXES & HOMES • ACHIEVE IMMEDIATE CASH FLOWFOURPLEXES & HOMES • ACHIEVE IMMEDIATE CASH FLOW Listen to Tom Wilson weekly: economic news & new properties
  11. 11. by Rusty Tweed, CEO of Tweed Financial Services S     avvy real estate investors have long used periodic 1031 exchanges to main- tain leverage, increase in- come and equity, and even- tually divest themselves of "tenants, toilets, and termites" by exchanging into shares in larger, professionally managed properties. WHAT IS 1031? 1031 refers to Section 1031 of the U.S. Internal Revenue Code, which allows real estate owners to exchange certain types of property, deferring the recognition of capital gains or losses due upon sale, and hence deferring any capital gains taxes that might be due. Owners of residential real estate often use this strategy to upgrade from owner-managed properties to profes- sionally managed properties, reducing their personal involvement while maintaining rental income streams and the tax benefits of real estate owner- ship. Long-term, this can be a good strategy. In the short term, however, real estate is subject to market cycles similar to stocks and bonds. In 2006, the real estate bubble burst, lead- ing to a decline in property values, transactions, and 1031 exchanges that reached bottom in 2009. Since then, some recovery has occurred, and our clients have begun asking us, “When will the market be ready for our next 1031 exchange?” GOOD NEWS FOR PROPERTY OWNERS Income property values are driven in large part by supply and demand – the number of rental units available vs. the number of qualified tenants > Is It Time for Your Next 1031 Exchange? STRATEGY PAGE 13 • 2016
  12. 12. WE NOW HOST MEETINGS/MIXERS currently available from the traditional sources (Freddie Mac). Lenders tight- ened credit requirements tremendous- ly in response to the mortgage crisis of 2006-2007, which in turn collapsed new construction to its lowest level since World War II. The situation is now easing a bit, but will continue to limit construction of new apartments for at least several more years (Witten Advisors). Due to these factors, it's becom- ing more and more of a landlord's market. National apartment vacancy rates peaked at 8% in 2009, but in 2014 are down to 4.1% (REIS). First quarter 2014 vacancy rates in Los Angeles were only 3%, a historic low (Beacon Economics). Meanwhile, in first quarter 2014, rents on new leases increased 2.7% in Los Angeles over the same quarter in 2013 (Beacon Economics). This has contributed to a recovery in multifamily property values (Grubb & Ellis). 1031 EXCHANGE ADVICE Reflecting this recovery on the 1031 exchange front, Exeter 1031 Exchange Services reports, "Our 1031 exchange transaction volume for 2013 was back to pre-recession levels, and our year- to-date transaction volume for 2014 continues to exceed that of 2013." So, the game is definitely back on. Of course, when doing a 1031 exchange, it's important to get a good price on the replacement property. Cap rate, the annual expected return on a property divided by the current value, is a common means of compar- ing the desirability of different prop- erties. Due to recent appreciation, cap rates in Los Angeles are lower than the country as a whole. This makes other metro areas where cap rates are more attractive (Jones Lang LaSalle) well worth consideration. There is also a great window of opportunity right now to acquire properties at a discount from owners in distress and PAGE 14 • 2016 Continued on pg. 21 Join Us in Marina del ReyJoin Us in Marina del Rey Meet Real Estate Investors, Private Lenders, TOP Producers & more 805.693.1497 Network with Industry Leaders in an Ocean-Front Setting! Visit Our Website for Info. MEET USIN MDRMDR CONNECT IN MDR REGULAR MEETINGS NETWORK WITH US! competing for them. In the resi- dential market, renter population is growing at 4% per year (U.S. Census Bureau), while construction of new apartments is adding only 0.5% per year to existing inventory, with no substantial speed-up projected for the next five years (REIS). This is good news for owners of residential rental properties. The strong increase in renter pop- ulation is being driven by three fac- tors. The first is immigration. About a million legal immigrants come to this country each year, and 85% of them rent, as opposed to only 32% of existing U.S. residents (National Multi Family Housing Council). BABY BOOMERS & ECHO BOOMERS Then there are Baby Boomers down- sizing in retirement. While most are homeowners and will remain so, an increasing percentage are opting, either by necessity or choice, for the flexibility, mobility, and main- tenance-free living of being renters (National Multi Family Housing Council). The greatest increase in demand for rentals is coming from the Echo Boomers, the grandchildren of the Baby Boomers, born in the 1980s and 1990s. This group is 75 million strong, and of the age when most singles and young families have traditionally rented while saving to buy their first home. Now, due to the economy and changing lifestyles, many of them are postponing or even rejecting home ownership in favor of the lower debt and greater flexibility afforded by renting (National Multi Family Housing Council). TRENDS FAVOR LANDLORDS To keep pace with renter popula- tion growth, 10 million additional apartment units will be needed in the next 10 years. That will require $1 trillion in invested capital, but it's not
  13. 13. The #1 Turnkey Real Estate Company In The Country. Memphis • Dallas • Houston The goal of our turnkey process is to provide a reliable, consistent, repeatable experience for each of our clients. Each month we work with new clients to provide them with a successful path to owning single-family rental homes, and we work with existing clients continuing to build their portfolio. The Memphis Invest team handles the details here on the ground to ensure you have success as a real estate investor. Call us today! 877-371-2625 Your financial future is already built. All you have to do is claim it.
  14. 14. A s a busy professional, it is likely that your income is sufficient to qualify for loans on investment properties – especially Single Family Homes – in most of the U.S. markets. A high percentage of busy pro- fessionals also have credit scores which bode well for getting good financing. I maintain that the ideal prop- erty for real estate investment for the busy professional is the Single Family Home (SFH). SFHs are almost a perfect property for the individual investor who also has a regular job or business. OPTIMALREALESTATE INVESTMENT A Methodology for the Busy Professional by Adiel Gorel SFHs are still the “American Dream” for most people. They are also a relatively attainable “dream” in many large metropolitan areas in the US where prices are quite affordable, even in 2016. SFHs are essentially the most “liq- uid” real estate since when it’s time to sell, your potential buyer pool is the largest – effectively all home buyers in the marketplace. SFHs are the real estate investment on which you can get the most pow- erful loan in the real estate universe – the magical fixed-rate, 30-year loan. Technically this loan is available on 1 to 4 residential units so duplexes, triplexes and four-plexes also qualify. However SFHs are usually superior to the 2-4 unit properties. In good areas you will usually find only SFHs, while you may have to travel to another part of town to see the “plexes” and they will usually be surrounded by many other “plexes”. The “plexes” are more likely to present management challeng- es, have more short-term tenants (statistically) and to top it off, may not necessarily provide as good an appreciation over the long term. One exception is new duplexes in white-collar areas, but overall the SFHs are superior. I have been buying homes for well over 30 years, and helped > PAGE 16 • 2016
  15. 15. people buy nearly ten thousand homes in dozens of markets. During these decades, I have witnessed many “plexes” and their perfor- mance as well as many thousands of SFHs. My experience, and the ex- periences of thousands of investors, leads me to favor the SFHs over the “plexes”. ~~~~ Buying larger residential proper- ties – apartment complexes – can be a good investment, but there are many areas in which the investor needs to be an expert. The optimal apartment complex size, based on the experience of most apartment complex investors, is between 100 and 300 (many say 150-300) units, so economies of scale can be utilized to improve cash flow. For example you may need one full-time on-site manager and one full-time maintenance person for a 110-unit complex, but if you have a 60-unit complex you may STILL need to use one full-time, on-site manager and one full-time, on-site maintenance person – but with 50 less rents coming in! That is NOT using economies of scale very well. There is a lot to discuss on the subject of large apart- ment complexes, but for the scope of this article, suffice it to say that they require deep expertise to run properly, they may take up much more time that a busy professional has available, they do NOT get financed with the magical 30-year fixed rate loans, and they usually call for a large invest- ment upfront. For the busy profes- sional, Single Family Homes present a simple, effective, and very powerful investment, with outstanding financ- ing that cannot be found anywhere else and a time commitment, which is relatively low. ~~~~ The 30-year fixed rate loan does not usually get its due as an amazing financial tool that should be utilized by any savvy investor who can get it. For many foreigners, it‘s incompre- hensible that in the U.S. we can get a loan that will never keep up with the cost of living for 30 years. During that period, essentially everything else DOES keep up with the cost of living, including rents. Only the mortgage payment and balance (which also gets chipped down by amortization) do not keep up with inflation. You can talk to many borrowers who have taken 30- year fixed rate loans and after, say, 16 years, realized that although there are 14 years remaining to pay off the loan, the loan balance AND the payment seem very low relative to marketplace rents and prices. The remaining 14 years is almost meaningless, since in many cases (statistically and histori- cally) the loan balance will be a small fraction of the home price and not very ‘meaningful”. Just to get some perspective, most other countries on earth have loans that constantly adjust based on inflation. Both the payment and the balance track inflation all the time – usually with no yearly and lifetime caps as adjustable loans have in the United States. PAGE 18 • 2016
  16. 16. The power and positive effect on one’s financial future get magnified when you consider that in 2016 we are still in a period in which interest rates are very low. While investors cannot get the same favorable loans as homeowners, it is nevertheless quite common nowadays to see investors getting a rate of between 4.25% and 4.75% on SFHs invest- ment properties. From a historical perspective, these are extremely low rates. Most experts think that in the future, mortgage rates will rise. From a historical perspective even 7% is considered a low rate. Thus these days, you can “turbo boost” the great power of the never-chang- ing 30-year-fixed rate loan by also locking these amazing rates, which will never change. If in the following years interest rates indeed go up, you will feel quite good about having locked under 5% rates forever. Once you have gotten your fixed rate loans, two inexorable forces start operating incessantly: Inflation erodes your loan (both the payment and the remaining balance), and the tenant occupying your SFH pays rent, which goes in part towards paying down the loan principal every month. These two forces create a powerful financial future for you. ~~~~ Many investors think that if a 30- year fixed rate loan is good, then a 15-year loan must be better. I actual- ly beg to differ. You can always pay a 30-year loan in 15 years (or 14 or 20 or 10 or 8) if you wish – just add some extra to the principal payment. However you cannot pay a 15-year loan off in 30 years. Thus the 15-year loan FORCES you to make the high- er payment while the 30-year loan gives you the important flexibility of keeping your payments low OR making them high based on your financial situation and other considerations. Some would say that the 15-year loan is also better since it has a better rate. True, the 15-year rate may be 0.25% or even 0.5% better than the 30-year rate. However, in my opinion this is not enough to justify the enormous loss in flexibility. In addition, having the loan for a lon- ger time allows inflation to “erode” the loan even further. This last consideration greatly minimizes the argument some investors make that “with a 30-year loan they pay hun- dreds of thousands of dollars more over the life of the loan.” One factor missing here is that they neglect the TIME VALUE OF MONEY! These extra dollars paid in year 20, 22, 28, etc., are in fact extremely “cheap” dollars in the sense that their buying power is greatly lowered over time. If the value of these future dollars were to be calculated based on the PRESENT buying power of the dollar, some of the later payments may be worth mere pennies on the dollar. In summary, I recommend getting a 30-year loan and then choose how long to take to pay it (anywhere between zero and thirty years – you choose!). ~~~~ While interest rates are low, it would behoove the smart investor to buy SFHs and get 30-year fixed rate loans on them while this “win- Adiel Gorel is the Founder and CEO of ICG (Internation- al Capital Group) Real Estate Invest- ments, a Marin County, California based real estate investment company started in 1987 that assists investors in purchasing properties, and also provides guidance on lending and property management solutions. The firm was started in 1987 and for over 30 years Mr. Gorel has dedicated his life to being “in the trenches” across the country to know first-hand what homes are available in different mar- kets and looking at homes (in person) to ensure that the fit is right for those investors he serves. He also has face- to-face visits across the country with other brokers and affiliates he works with, in negotiating investments for his clients. To date, he has purchased over 8,000 homes for investors and has purchased nearly 600 homes with his partners/affiliates worldwide for his own portfolio. Mr. Gorel is also the author of “Remote-Con- trolled Riches—The Busy Person’s Guide to Real Estate Investing.” He has been profiled on ABC-TV and CBS-TV network affiliates across the country, featured in the San Francis- co Examiner, Fortune Magazine and interviewed on various radio shows. He holds a Bachelor of Science in Electrical Engineering from McGill University in Montreal, Quebec, Canada, and a Master of Science from Stanford University in Palo Alto, California. ‘While interest rates are low, it would behoove the smart investor to buy SFHs and get 30-year fixed rate loans on them while this “window” is open.’ PAGE 19 • 2016 Continued on pg. 114
  17. 17. D ial into new tactics and gain the cash flow you need to fuel the financial security and lifestyle you crave…What if you could hack the math, leverage VIP financial strategies, save thou- sands and get to your lifestyle goals faster, all while enjoying your venti frappuccino too? There’s one thing which virtually everyone agrees on. That is the banks have been building their own rules, to their own benefit for years. When the rules don’t serve them best, they have shown a track record of lobbying and blatantly breaking them until they get their way. That means the average individual and family is always at a disadvantage. One which costs them hundreds of thousands of dollars over their lifetimes, if not millions. Fortunately we don’t have to remain victims to lack luster returns on bank deposits, predatory interest rates, and terms which definitely aren’t in our best interests forever. According to Matt Pill- more, founder of VIP Financial Education the key is to tap into “alternative banking strategies.” VIP FINANCIAL EDUCATION The costs of using the various financial vehicles we all need on a daily basis, and to get ahead levy a hefty toll on most. The biggest trap for most is that they haven’t been taught how to drive them well, or where to look for better deals, and how to secure them. With such an obvious gaping void in practical education at school, some might even wonder whether the banks have their fingers in the curriculum too. VIP Financial Education focuses on enlightening individuals on these cash flow secrets they should have been taught in school. VIP was originally founded in 2000, when Matt Pillmore assembled a team of top financiers, including the nation’s leading credit attorney, and one of the orig- inal creators of the FICO score. The team committed to learning, leveraging the best minds, tools and talent, and to focusing on “making a difference, versus a fortune” In the process Matt “discovered a revolutionary cash flow formula, which allows real estate investors to own real estate free and clear far more quickly and safely by turn- ing the banks’ rules against themselves.” And in 2009 the company decided to streamline, refine, and update with a life-changing new system to “rapidly accelerate economic independence based on this formula.” VIP Strategies to Accelerate Your ECONOMIC INDEPENDENCE PAGE 15 • 2016 All educational content is provided free of charge. There is no “selling from the stage” or solicitation by the speaker. The class will last approximately 50 minutes plus time for questions. VIP is not a financial advisor, nor do they sell any financial products. VIP has been providing free financial education for over 15 years and has an A+ rating with the Better Business Bureau. Over the past fifteen years, national consultant, speaker and educator, Mr. Matthew Pillmore has presented fi- nancial educa- tion nationally for and in front of countless real estate organizations. He speaks nationally on the topics of credit scoring, debt elimination, fiscal respon- sibility and strategic cash flow maximiza- tion. Mr. Pillmore has studied under the founders of the FICO credit scoring sys- tem. We have countless testimonials and references from previous REIA owners, managers and attendees that can attest to the value of the education provided by VIP Financial Education. Our Expert Speaker — ARTICLE BY TIM HOUGHTEN PAGE 20 • 2016
  18. 18. PAGE 21 • 2016 Continued on pg. 98 bank foreclosures, and to convert B and C properties to A's as the demand for upscale rentals drives gentrifi- cation (the process of wealthier residents moving to an area, and the changes that occur due to the influx of wealth) in certain areas (RK Properties). 1031 exchanges are not without their issues, however. When the time comes for you to upgrade your real estate investments, it is important to work with 1031 specialists with the experience and relationships to help you find the right 1031 solution and replacement property for your individual circumstances. For a personal, private consultation, give me a call at (626) 588-1520. Robert “Rusty” Tweed is president of Tweed Financial Services, Inc. an independent, financial planning and investment management firm. Mr. Tweed has educated thousands of investors on real estate investment and estate and trust issues through his popular seminar series since 1997. He is a past board member of the Real Estate Investment Securities Association (REISA) and in 1999, Rusty was selected Estate Planner of the Year by the National Association of Financial Planners and subsequently served on the professional associations Board of Advisors. Securities offered through Cabot Lodge Securities, LLC (CLS), Member FINRA/SIPC. Ad- visory Services offered through CL Wealth Management, LLC (CLWM), an SEC Registered Investment Advisor. Tweed Financial Services, Inc. is not controlled by or a subsidiary of Cabot Lodge Securities, LLC or CL Wealth Management, LLC. CL#1232015 RustyTweed CertifiedEstateAdvisor Lookingforways toincreaseyour investmentincome? Wehaveexperiencedadvisors toansweryourfinancialand investmentquestions... l 1031 Exchange properties available Tweed Financial Services, Inc. Financial & Estate Planning for Real Estate Investors (626) 588-1520 2060 Huntington Drive, Suite #1 San Marino, CA 91108 Call800-526-1599ext.106orenrollonline: Meal included, provided by our sponsors. Seating limited to experienced investors. Reservations required. Aswithanyrealestateinvestmenttherearevariousrisks,includingbutnotlimitedto:illiquidity,limitedtransferability,and variationinoccupancywhichmaynegativelyimpactcashflow,andevencausealossofprincipal.RealEstatevaluesmay fluctuate based on economic and environmental factors and are generally illiquid. This does not constitute as an offer to buyorsellanyrealestate,securitiesorinsurance.Suchoffersareonlymadebyprospectuswhichshouldbereadthoroughly and understood before investing. Prospectuses will be available at the workshop. CA Insurance License #OB13052. We do notprovidetaxorlegaladvice. SecuritiesofferedthroughCabotLodgeSecurities,LLC(CLS).MemberFINRA/SIPC.Advisory Services offered through CL Wealth Management, LLC (CLWM), an SEC Registered Investment Advisor. Tweed Financial Services,Inc.isnotcontrolledbyorasubsidiaryofCabotLodgeSecurities,LLCorCLWealthManagement,LLC. Register for our next Investment Strategies Workshop hosted by Tweed Financial Services, Inc. Is it Time for Your Next 1031 Exchange, pg. 14 “NO BLISTERS” There are three reasons that 99% of Americans fail at improving their finances: 1. They don’t know about the alternatives 2. They find the math too confusing 3. They don’t see the value in the long game What VIP Financial Education has created is a vehicle, which prevents 80% of future interest costs. The outcome if used consistently is a free-and-clear lifestyle in 25% of the time, and a lot more spendable cash flowing in. Best of all Matt Pillmore says these strategies are “easy to implement,” if you have a guide. He insists “no blisters” will be incurred in mapping your way to your ideal lifestyle. In most cases he says there are no budgeting restrictions, or need to try and beef up earned income. That means you can continue to treat yourself to your favorite delicacies, continue to do what you love, and get on the fast track to financial freedom at the same time. THE FIGHTER JET OF FINANCES In his own words, Pillmore says, “VIP Financial Education’s system is a fighter jet versus the financial horse and buggy the majority of individuals are trying to use these days.” The techniques taught are aimed to rapidly accelerate: • Reduction of liabilities • Increasing assets • Increasing cash flow • Freedom of choice This is achieved via new Debt Weapons, which optimize credit, and optimize cash flow. CREDIT SMARTS FOR REAL ESTATE INVESTORS Out of the thousands that have been through the VIP program Matt reports “92% expressed a desire to share this information and tactics with their friends.” With this level of proven value and praise there may be many real estate investors that could see immense benefits of a program like this. The same applies to real estate coaches and vendors who see the value in giving their contacts the power to ramp up their
  19. 19. TX vs. CA W hile some big real estate funds are trying to find their place in California regions like Silicon Valley, some of its savviest and earliest engineers have been sourcing superior invest- ments elsewhere. Tom K. Wilson arrived in Northern California in the late ‘60s. He focused on management roles with the high-tech industry in engineering, manufacturing, sales, marketing, and profit centers. While many funds and entrepreneurs are still buying real estate in high-end California, veterans like Tom saw better opportunities decades earlier. Though not an easy task today, Realty411 caught up with radio show host and current CEO of Wilson Invest- ment Properties, Tom K. Wilson, to get the scoop. “I Made More Money in Real Estate Sleeping, Than Working 60 Hours a Week in Tech.” Being successful in Silicon Valley’s hot tech and finance world, Wilson began to discover that other successful individuals were investing their own cash in real estate. Recently we’ve witnessed entrepreneurs and celebrities making big real estate investments too. Hedge Funds and Wall Street traders have even been ‘jumping ship’ for real estate as exotic as mobile homes. Tom began buying rental homes back in the ‘70s. His big “Eureka” moment came when reviewing his finances, he realized he was making more money from his real estate investments while he was sleeping than while he was working in his corporate and startup businesses. While everyone else was partying and buying luxury items (before the big dot com bubble crash), Tom was strategi- cally and financially set to leave the high tech industry, becoming a full-time real estate investor. Hacking the Code to Real Estate Investment Success Like most new investors, Tom began with single family homes, realizing later he had “confused taking a job as a landlord with being an investor.” Second, he recognized that “most people underutilize their own generalist skills to analyze and manage alternate business ventures.” This combination can lead to poor results, if not worse. He found that this best way to learn was to find others who were successful and ask them questions. He met with everyone he could who was exceedingly successful in real estate investing and picked their brains. He found two primary principles: PRIMARY PRINCIPLES: 1. Delegate and leverage other’s expertise, (like property management and professionals who are real estate invest- ment experts in each of their fields); 2. Consider investing outside of high end states like California. To Wilson’s surprise, other major metros were getting three times more rent for the same real estate investment dollar than the coastal regions like Silicon Valley. That is still true today. This paradigm shift was Following the Money – The Path and Case for NNN & Syndications PAGE 22 • 2016
  20. 20. “investing locally no longer pro- duced the best returns.” Tom Spent a Year Researching America’s “go to” real estate metros turned out to be in Texas and they came out on top with the highest rent to invested dollar ratio for major economic centers. Today a median price house of $900K in Silicon Valley rents for $3,000. It is the lowest rent per in- vested dollar in the US other than Manhattan. That same $900K property could be exchanged (with no capital gains cost) into seven better qual- ity Texas properties renting for a total of $9,000. You don’t need a CPA to figure out why that is better cash flow. (For more, visit http:// Why? Texas is the financial and business capital of the South, is business friendly, has no state in- come tax, it has affordable housing for its employees, it has a very broad-based economy, it has the fastest-growing employment in the U.S., it is centrally located in the time zones of the Americas (great for communications and distribu- tion), it is in the Sun Belt, and it has the largest capacity airport in the world. Just to name a few. Wilson says,“The most important factor by far in the regional selection process for optimum cash flow is to find the best rent-to-purchase price ratios, 1% being the minimum goal ($125K home should get $1,250/mo rent. For multifamily and commercial products the CAP rate is the equiva- lent metric.” The CAP rate is the percent return in one year if you paid cash for the property. CAP rates and returns are running typically double in Texas cit- ies as compared to California cities. Secondly, factor in interest rates. At today’s rates, Tom advises to get all of this cheap fixed rate debt you can. Third, look for a business friendly location with the least problems: collections, turnover, repairs, mainte- nance, etc. For example, Detroit and Dallas have close to the same rent ratio, however, most would guess that Dallas is a safer bet. Fortunately, you don’t have to guess; the data is available and definitive. Finally, the best cash flow now is essential, but we also want future higher income (rent increases) and in- creased property values. Tom distilled it down to one word: “JOBS”. Busi- ness drives inward migration, which drives demand for housing, products, and service sales. There are indeed other factors such as absorption and new construction rates, however the overwhelming factor is jobs. Texas has created more jobs (1.2M) since WESTERN CROSSING RETAIL CENTER $20.2M, $50,000/share, 17 Tenants, built 2009 14% Annual return, 8.25 CAP, 8% Preferred return COM vs. MULTIthe recession than all other states combined. Amazing. Putting the New Strategy into Tactical Action In 1999, using his skill set from managing high tech companies, convincing data, and the selection of a team in DFW, Tom started sell- ing off his California properties and purchasing Texas properties using 1031 tax deferred exchanges (pay- ing no capital gains). Over 17 years he bought and sold over 3,000 units and $200M of real estate, includ- ing 8 multifamily properties, over 500+ single-family homes and multi-plexes, three condo conver- sions, 10 syndications, and eight commercial properties. He never looked back. Not only did strategy and data serve them well, but they also protected him during the recession. PAGE 23 • 2016 Continued on Next Page.
  21. 21. TX vs. CA Dallas and Texas property values dropped the least of any major economic region in the country. Wil- son says, “We all learned that not losing what you have is as important as good returns.” Shops, Offices, and Syndications - NNN After the crash, people who had not considered real estate as an investment vehicle before now wanted to jump in. Even hedge funds and Wall Street now identified residential real estate investing as a hot ‘new’ asset class. As a consequence the new high demand vs supply has increased the prices of homes and multi-family units more than the income. To the new real estate investor the natural progression was to invest in multifamily proper- ties because it felt familiar (even though they are more complex than many realize). Thus we developed a supply/ demand imbalance. So today commercial products are giving typically 2% higher returns than residential ones in most major high return markets in the country because of their relative positions in their market cycles. Multifamily properties and their returns have peaked out whereas commercial properties are still in the expansion part of the cycle. Tom says he finally found “the apex of returns in this new marketplace, commercial real estate.” Commercial properties are advantageous because of the economies of scale, more predictability, higher cash flow, higher quality tenants, longer-term leases, automatic rent increases, NNN, and they are simpler to manage profes- sionally (as long as the manger has the higher level skill set). NNN leases pass the expenses of the taxes, insur- ance, and repairs to the tenants, giving the investment more certainty of projected returns. Leveraging Experts Using Syndications Wilson acknowledges that all of this may feel out of reach for the individual investor, however syndications allow one to move up to the ‘big leagues’ that are nor- mally restricted to institutional and wealthy investors. Syndications are growing in popularity. There were over 50,000 real estate syndications last year in the U.S. The small investor can leverage the expertise of the syndi- cator’s skills and experience. With the right syndicator, metro, and product, one can turn $50K into quarterly cash flow and exiting with a total of $110K over seven years. PAGE 24 • 2016 Confidential offering MeMoranduM PLANO PARKWAY BUSINESS CENTER $10.2M, 6 Tenants, 116K sq ft., $50K/Share Syndication. Located in Plano, Texas COMMERCIALADVANTAGES • More predictable & higher cash flow • Higher quality tenants • Long-term leases • Renewal options • Automatic annual rent increases • NNN: Reimbursement for expenses • Can create value by driving up income (and NOI) • Simple to manage professionally
  22. 22. A good syndicator has high integrity, a successful track record, filters through hundreds or thousands of opportu- nities to select the best, narrows the selections, performs extensive due diligence, loan negotiations, invests along- side the client, and provides professional management of the share holders’ investment. They will provide exten- sive information about each investment, the economy of the region and be available to answer all of your questions to your satisfaction. The shareholder enjoys the passive benefits without the liability and management head- aches. Typically a commercial syndicator will provide detailed information online and in print, and host events and webinars. Information you can expect in- cludes summaries of the invest- ment, market analysis, location economics, demographics, property description and condi- tion, comparisons of properties, independent statistics, current financial performance and pro- jected, tax issues, background of the principals, detailed fund disbursement schedule, property performance forecasts, and an exit plan. Great Syndicators are Easy to Contact by Phone, Text or Email. Expect answers to your questions within 24 to 48 hours with an attitude of openness and willingness to respond to everything a potential investor asks. While there cer- tainly may be time limitations to invest, you should never commit your hard-earned money prior to establishing the ability of the syn- dicator to manage the investment with integrity. The Wilson Investment Properties Difference Today, Wilson Investment Prop- erties, Inc. offers highly selected turnkey syndicated commercial real estate opportunities as well as homes and multiplexes in Texas markets with strong economic fundamentals that have proven resilient through all phases of the real estate market. Continued on Next Page. SYNDICATIONADVANTAGES Enables Individual Investor to “Move Up to the Big Leagues” • Ownership in high quality multi- million-dollar products for low cost of shares ($50K) • Take advantage of syndicator skills * Access to deals * Negotiations * Due diligence * Management • Greater asset class diversification • No liability beyond share ownership PAGE 25 • 2016
  23. 23. The firm’s CEO has been an industry leader and investor for five decades. Wilson Investment Proper- ties sources the highest quality products, provides total transparency, has a long successful track record, and the team that has the experience and skills to find, secure, and manage the products. They are a direct provider, not just a referral service like 75% of online sources. They invest in all of the product types and regions in which they sell. Wilson Investment Properties’ corporate headquarters is in Silicon Valley, with a solid team on the ground in Texas and is in full control of their directly-provided properties. Today the Wilson family still lives in Silicon Valley, but along with their peers, most of their capital is going to Texas real estate deals with attractive higher CAP rates and returns in partnership with fellow investors who prize ROI. Discover more at or call 408-867-1867. Listen to Tom’s weekly radio show at 2 pm Wednesdays on KDOW 1220am, San Francisco’s leading business radio station. Podcasts are available on the website, iTunes and YouTube. PAGE 26 • 2016 1-800-836-8190 Get Your Book Published With The most trusted all-in-one book publisher • Titles published in print & digital formats • Exciting cover & interior illustrations • Books sold at major retailers Call today for your Free Author Submission Kit! The FTC suggests that over 10 million consumers have errors on their credit reports. You might be at risk! 800-384-2709 CALL FOR A FREE CONSULTATION TODAY FROM BAD CREDIT FREE YOURSELF Remove negative items from your report* More than 92% of our clients see positive results within the first 90 days!* Get the credit score you deserve! *Client results vary. There is no guarantee that your results will match those above. We count a single removal from all three bureaus as 3 removals.
  24. 24. Winning in real estate is all about the numbers. Far too many real estate investors are sabotaging their results by focusing on the wrong metrics. Some of the most obvious blunders today may be blindly focusing on: • Number of hours worked • Number of Facebook followers • Re-Tweet counts • Deal volume • Number of employees So as long as investors focus on gross revenue and great-looking properties, which an agent promises will go up in value the most they’ll be fine, right? No. Remember the number one rule of investing in real estate – it’s all about “location, location, location.” WANTED: GOOD PROPERTIES, AT FAIR PRICES, IN GREAT LOCATIONS There can be properties on which the numbers ap- pear to work all over the United States. Journalists > INTERVIEW BY TIM HOUGHTEN ANALYZE PAGE 27 • 2016 The metrics that really make a champion real estate investment portfolio
  25. 25. ABOUT SENSEI GILLILAND Founder of Black Belt Inves- tors, Sensei Gilliland has been featured on the cover of Real Estate Wealth magazine, hosts ‘The West’s Top Ranked Real Estate Investors’ Club’ – 12 ROUNDS, and has engineered several highly popular trade- marked real estate investment systems. Sensei is the go-to source for serious investors and entrepreneurs seeking extreme- ly effective, no-holds barred training, investment properties, and funding. CONTACT INFORMATION: Black Belt Investors 951.280.1900 or regularly publish various ‘top 10’ lists claiming to predict which markets may be the trendiest or see the most price appreciation over the coming months. Unfortunately, while many investors are diligently working the numbers on po- tential deals, are completing due diligence and inspections, and are obtaining insurances – they are missing the most important factors that can really dictate their success. Just as the stock and re- tirement savings market is horrifically skewed based on tracking the wrong figures, or what the price to get in is to- day, many real estate promot- ers are advertising the wrong figures too. In fairness, this market appears to be 90% or more made up of individuals who have only gotten in since 2008. They may not know any better. Others are only focusing on filing their pock- ets today, with no concern for tomorrow. They are encour- aging the public to follow that plan too. Some are clearly heading off a cliff within the next 10 years, or less. SENSEI’S PHILOSOPHY I have a little different view. Making money today is great. Real estate can deliver on that. What’s most important to me is building a sustainable business, which will provide my family a sure stream of passive income, and assets which can stand the test of time to ensure they’ll always be taken care of in my life- time, and well beyond. That means focusing on a slightly different data set than most. Specifically it means focus- ing on the numbers in the local market, not just crystal ball pre- dictions on a particular property. SOME SCARY DATA EXPANDING OUT THERE INCLUDES: • Orlando, FL topping 177% on the affordability index, mean- ing it costs almost double the average wage to secure housing there • Yesterday’s hot cities, like Miami, now full with over 24 months of home inventory • The number of investors tak- ing out 10-year balloon loans on portfolios of rentals What I want to know is: • How strong is the local econ- omy? • What direction is the local economy headed in? • How long will it last? • Can properties in this location continue to produce positive cash flow? • Will I be able to sell this prop- erty for a profit in the future? • What are my viable exit strat- egies? While it is always important to pay attention to what you are buying, and to make sure the in- dividual investment makes sense, and is profitable, the location can be far more important. There are plenty of fabulous looking properties, which have fallen into ruins because the area burned out. There are luxury estates and condos in ‘hotspots’, which have lost millions in equity. Then there PAGE 28 • 2016
  26. 26. • Department of Labor • Black Belt Investors • CoreLogic KNOW & GO… To invest for success in both the short and long term, real estate in- vestors must know their numbers. More important they must know and focus on the right numbers. That includes intimately knowing the local market and its fundamen- tal trends. For myself and Black Belt Investors in 2016 that points to cities like Cleveland, Ohio for remote rehab investing. What does the data say to you? Where will you invest? Sensei Gilliland, CEO of Black Belt Investors, is a regular con- tributor to Realty411. Learn about Sensei’s events, bus tours and more are average, bread-and-butter properties, which have delivered incredible cash flow over the long run, and have pretty consistent- ly tip toed up in value. This last group is the one I love the most. FACT CHECKING THE FUNDAMENTALS Numbers to use in evaluating a destination should include: • Job growth • Employment figures • Population growth • Taxes • Affordability It’s also worth evaluating the innovative DNA of a given des- tination. Is this a city that has proven to be able to reinvent itself and fuel growth in spite of other macro-economic changes? Let’s take the example of the state of Ohio. For those that have been listening to the debates, Re- publican John Kasich states that Ohio’s economy was ranking nearly dead last, and has now been built up with over 400,000 jobs. That ranks Ohio number eight in the nation for job creation, and number one in the Midwest, according to Kaisch and It’s also worth noting that Cleveland in particular is home to almost 30 colleges and universi- ties, and more than 60 hospitals. So where can real estate inves- tors find the data they need to make smarter investments? Data sources may include: • FRED – St. Louis Fed • FMA Data • Property Shark • Rent Café • • US Census Bureau Learn How to Turn One Single Family House into a Monthly $5,000 - $15,000... Learn How to Turn One Single Family House into a Monthly $5,000 - $15,000... Cash Flow Tsunami!Cash Flow Tsunami! “Senior Housing is America’s Best Financial Opportunity for the Next 20 Years!” “Senior Housing is America’s Best Financial Opportunity for the Next 20 Years!” -Gene Guarino, President and founder-Gene Guarino, President and founder 480-704-3065480-704-3065 PAGE 29 • 2016
  27. 27. T he real estate indus- try’s largest hedge funds met to discuss the state of the rent- al housing industry at IMN’s 4th Annual Single Fam- ily Investment Forum in Miami, Florida in May. I had the honor of attending this event as a panelist for the second time, and found it so information-packed, I wanted to share the highlights with you. The opening keynote was giv- en by John Bartling, the CEO of Invitation Homes. He explained that in prior decades, large institutional funds invested in apartments but today, rental demand is stronger in single family homes. Invitation Homes, also known as Blackstone, is privately owned, and boasts the second largest portfolio of rental homes at 47,572. The largest single family home rental fund is American Homes 4 Rent, which is publicly traded and currently owns 47,655 homes after merging with with American Residential Properties last Fall. The third largest company is Colony Starwood Homes with 31,116 homes, also publicly traded. Progressive has 18,569 homes and is private. The top 18 institutional funds own 198,748 homes collectively, but the four largest funds own 144,913 or over 73%. Most of the remaining “big players” own less than 5,000 homes each. While there’s been a lot of concern that these big Wall Street firms are buying up Main Street, the truth is that they only take up 1.13% of the 17.6 million single family home rentals that exist today. Here are some highlights from the event that are important for mom and Wall Street Hedge Funds Back to Buying Single Family Home Rentals? Millennials, ages 18-34, are the larg housing demand for years. The ave INSIGHT By Kathy Fettke, Co-CEO of Real Wealth Network PAGE 30 • 2016
  28. 28. pop investors to understand: Employment is at 5%, but does not include underemployment (part time and those who gave up). The labor participation is at a 40-year low, so some say real unemployment is closer to 11%. Historically, housing booms have occurred when unemployment decreases from 6% down to 5%, but it hasn’t happened this time. Why? They blame it on real wages, which are lower than they were eight years ago for the middle class. Income is not keeping up with home prices, making it difficult for the average American to qualify for a home loan. But people need to live somewhere, so they will rent instead of buy - but the majority prefer to rent a home rather than an apartment. That’s why hedge funds are choosing single family homes over apartments. Millennials, ages 18-34, are the largest generation in the U.S., and will likely drive housing demand for years. The average age for buying one’s first home is 31. The peak Millennial age is 24, so there’s a good 7+ years of runway as landlords. But there’s a good chance their peak buying age will be older than past generations because these kids saw what happened to their parents during the housing crisis. They won’t be so quick to jump into homeownership, as they are the first genera- tion in decades to see a massive housing decline. They came of age during the Great Recession, so they had trouble finding employment. Instead, they stayed longer in college, driving up more student loan debt. When they finally graduated, most could only find low-paying jobs. Low income combined with high debt will make it tough to qualify for a home loan - so expect this generation to rent for at least a decade. What will they rent? Millennials are known to love their pets, so they prefer to rent single family homes over apartments, where they can have a yard. Rental demand won’t just be coming from the young and single crowd. The second largest generation - the Baby Boomers - currently represent the highest percent- age of rental growth! est generation in the U.S., and will likely drive rage age for buying one’s first home is 31. Plus, keep in mind that more than 10% of housing stock went to rentals even before the housing crisis, and our population is growing. These are just some of the reasons why we’re seeing rents climb nationwide. Additionally, housing inventory is low in most markets because builders basically stopped building for about six years. Today, new home sales are flat – at around 500,000 to 600,000 – which is 1 million less than what’s needed based on demand and household formation. Builders simply are not taking big bets. They got wiped out in the housing crash. Today, they are focusing on smaller, higher-end subdivisions. Foreclosure activity is way down. A normal market would see about 1% of property go into foreclosure. Today, it’s half that because recent loans have been solid. Lack of distressed inventory contributes to increases in home prices. However, there are still foreclosures in the judicial states: Illinois, Florida, Massachusetts, and New Jer- sey. Banks are trying to move these quickly and are not attempting to fix them up. They just sell at auctions for cheap. These are primarily HUD homes and tend to be in very rough shape. Buying these homes is not for the faint of heart. Cap rates on SFR normally are well below apartment PAGE 31 • 2016 Continued on Next Page.
  29. 29. cap rates, but that isn’t the case today. For example, returns on SFR’s in Atlanta are 8%, much higher than 6% in apartments. But in Phoenix, it’s at par because home prices have increased. In 2005 there were 12 million single family home rentals, but never before owned by large institutional investors. They flocked in after the mortgage melt- down once they saw the kinds of returns they could get. Now that the markets are recovering, will the hedge funds leave? They took advantage of an opportunity, but will they move on and back into apartments? The consensus was “no” and that this is just the be- ginning of an industry. During the last 5 years, devel- opments were made in the single family rental space that did not exist before with data sourcing, service providers, and improved software. The institutional funds paved the trail and now a lot of people under- stand the business - and continue to improve upon it. Wall Street funds like the asset protection, cash flow, potential capital growth, leverage, tax benefits, and easy exit upon sale. They have discovered what mom and pop investors have known for years. As a result, the rental business is a very different industry than it was in 2006. Fortunately, it benefits everyone when property managers and rental services improve. Where are the funds buying today? They say Hous- ton, Indianapolis, Chicago, Jacksonville and Birming- ham are great markets and still not overbought. They plan to buy about 1,000 homes this year. Incidentally, those are the same markets where Real Wealth Network has REAL turnkey property provid- ers. Should mom and pop investors be worried that hedge funds are once again our competition? No. Don’t worry. As I said earlier, institutional funds represent less than 2% of the industry and they are very targeted in what they buy. Individual inves- tors can actually do much better and get much higher yields because of our flexibility. If you’d like a list of R.E.A.L turnkey, done-4-you rental property providers in the strongest markets, join Real Wealth Network, just like our other 24,000 mem- bers. It’s absolutely free, plus you’ll have access to our data and network of professionals. More importantly, we’ll tell you which areas and companies to avoid. Want to learn more? Visit for free education, mentoring and a strong, trustworthy network to help you learn more about your options and maximize your returns. We can help you find the best markets for investing, and introduce you to experienced property managers, turnkey income property providers, syndicators and highly reputable real estate agents nationwide. • Obtain wholesale houses with equity • Obtain no money, no credit financing • Don’t buy houses retail - that’s ridiculous! • Receive local market intelligence & training • Meet local buyers, sellers & investing partners Please don’t waste your time and money going to a “Get Rich Quick” seminar from a traveling pitch-man. Network with LOCAL TEXAS Real Estate Investors who are getting started or taking it to the next level. Join the largest Real Estate Investor Network in TX! Do you know what a REIA is? It’s a Real Estate Investor Association, and it’s where smart people go to: PAGE 28 • 2016
  30. 30. PROBATE M any real estate investors are looking for properties that can be renovated for a profit. Finding the right property at the right price, in a condition that it can be easily updated, can be a real challenge. Add to that the tightening of the real estate lead market and your invest- ment business may see issues in the upcoming phase of the market. If you can find the right property, money can be made in renovating properties and reselling them. However, this profit is dependent on the price of the original prop- erty and many other factors. As you can imagine, finding the right property can be even more of a challenge if you have a limited amount of leads coming in. There are ways to find the best real estate leads for rehabbing homes if you know where to look. Best Real Estate Leads for Rehabbing Homes MONEY CAN BE MADE IN REHABBING There is no doubt that money can be made by rehabbing properties. According to an article published by Tere- sa Mears, the profit can be relatively high. She writes, “Investors flipped 156,862 single-family homes in 2013, according to RealtyTrac, which defined a flipped home as one bought and sold twice within six months. The number of flips was up 16 percent from 2012 and 114 percent from 2011. The average gross profit for a completed flip – or more accurately, the difference between the first sales price and the second sales price – was $58,081.” In fact, investors are even taking advantage of higher- priced homes in metropolitan areas that yield a high profit and that are not a result of a foreclosure. Mears said, “Only 21 percent of those flips were foreclosure proper- ties,” according to RealtyTrac, down from 32 percent in 2011. And it has proved much more popular in some > By Leon McKenzie U.S. Probate Leads PAGE 33 • 2016
  31. 31. cities than others. Home flipping was up 141 percent in Virginia Beach, Va., 92 percent in Jackson- ville, Fla., 88 percent in Baltimore and 79 percent in Atlanta. But it fell 43 percent in Philadelphia, 32 percent in Phoenix, 17 percent in Tampa, Fla., and Houston, and 15 percent in Denver. In 2013, there was a bigger increase in the flipping of properties that sold for $400,000 or more than in lower-priced prop- erties.” FINDING THE RIGHT PROPERTY TO REHAB CAN BE A CHALLENGE Many investors who are just getting started in property renova- tion believe that they will have plenty of options and a large number of homes of which to choose. That is simply not the case. Real estate investors are seeing that leads in many areas are simply drying up. Mears writes, “‘Investors have not lost interest in pur- chasing and flipping homes. In fact, now that we are seeing home price appreciation, they are more interested than ever,” Sheldon Detrick, CEO of Prudential Det- rick/Alliance Realty, which covers Oklahoma City and Tulsa, Okla., said in a RealtyTrac news release. “The challenge for many would-be flippers in our markets is a shortage of available inventory to flip.” WHY ARE LEADS HARD TO FIND? There have been fundamental changes in the market that have de- creased the amount of leads that are available for investors. One of the biggest changes is that is can be dif- ficult to get a mortgage to purchase a property. After the market drop of 2008, banks changed their lending procedures and limited new mortgages to only those with the highest credit ratings. The ripple effect in the market has been that people who own their homes, or who have a current mort- gage, are staying put. They don’t want to take a chance of not being able to get a mortgage for a new property. This has resulted in fewer homes for sale on the market in the majority of the United States. Instead of moving, many homeowners are simply renovating their own homes and adding needed space with extra great rooms and bedrooms. Another reason that homes for ren- ovation can be difficult to find is that the foreclosure crisis has taken a sur- prising turn. Instead of banks putting these homes on the market and selling them quickly at a discount, they are leaving their REO (real estate owned) properties on their books and ex- pecting to receive the current market value for these homes despite the fact that many have suffered damage and vandalism. Kimberly Palmer writes that even if you do find a promising pricing structure, you may still have issues with these homes, “The cheap prices do come with potential down- sides: Some homes have liens against them or mortgages associated with them, which can be inherited by their new owners.” It can also be hard or impossible to inspect such homes in advance of their sale, which means there’s no time to check if the basement is flooded or if the air conditioning still works. These types of unknowns are just what can take a renovation project from profit to cost in just moments. Being able to fully evaluate a prop- erty is one of the best practices of purchasing a home for renovation. With the difficulty in getting a mortgage and the shortage of leads, moving your business forward to complete renovations can be a real project. The shortage of leads has been going on for quite a while and shows no signs of slowing down. Trey Garrison of Housing Wire said of the 2015 market, “As of March 31, near- ly 71% of homes on the market were stale, meaning they had languished unsold for more than a month,” according to the latest report by real estate brokerage Redfin. New listings shot up 9.2% last month, but the spring housing bounce is so far nowhere near big enough to satisfy demand. Nation- wide, the total number of unsold homes rose 5.3% in March to 2 million, but at the current pace of sales, that supply would be exhaust- ed in only 4.6 months, according to the National Association of REAL- TORS®. Normally, the supply of homes on the market in most metropolitan areas would be much longer than just over four months. While it does sound like there is elasticity in the market, only having approximately a four-month supply of homes just isn’t enough. The result of not hav- PAGE 34 • 2016 ‘The shortage of leads has been going on for quite a while and shows no signs of slowing down.’
  32. 32. ing enough homes on the market can not only make it hard to find a home, but has resulted in increased prices on the homes that are available. This, too, is not good news for those investors who want to pur- chase homes as increased prices can lead to decreased profits. FINDING A HOME THAT MEETS REHAB CRITERIA As investors look for alternate ways to create options in the real es- tate market, there are specific criteria that can help investors to succeed. Mears indicates that these are the most important factors: • “Finding a good house at a low enough price to make the deal work • Finding reliable contractors to do quality work at a reasonable price • Finding money to finance the deal • Selling the home at a price that will cover expenses and provide enough profit to compensate for the time invested These criteria are the ones that have the most impact on the success of your project. Taking the time to find a house that has a low price gives you extra room for repairs and additional space for profits. Having reliable, professional contractors is the key to ensuring that your renovation project is completed on time and within the budget needed. A good contractor can also help you to pass needed city inspections and permitting. Having a way to finance the purchase and all of the costs as- sociated with it is also a critical as- pect of renovation. Finally, finding a selling price that not only covers the cost of the property and the repairs, but also offers you a healthy profit is important. These are criteria that can help you to profit. The most crucial aspect of this is finding a good home as a project in this market with few leads. IS THERE AN ANSWER? For those investors who want to purchase homes to rehabilitate, there are options that can save money and create opportunity. Knowing where to look for these leads is critical to investors who are serious about building their businesses. There are virtually untapped areas of the mar- ket that can help you to find prop- erties for your investment business. Probate, bankruptcy and divorce cases can provide you with amazing opportunities to purchase homes for a discounted price. Probate properties are usually put on the market as a requirement by the court to ensure that bills asso- ciated with a loved one’s death are rectified. Guided by a court-appoint- ed Executor, this individual, usually a family member, friend, attorney or accountant, has the power to sell property. Generally, the Executor is willing to sell property for thirty to fifty percent less than the current market value. This is due to the fact that medical bills, legal fees, funeral costs and taxes need to be paid in order for the probate to be closed and heirs to receive their share of the estate. Executors may also be exceptionally willing to sell property if they live out of state or far away from the property they are managing. This can create issues with property maintenance and upkeep. Bankruptcy leads can be found as the result of court proceedings in which an individual is facing financial challenges. These sales can include everything from residential homes to businesses and commercial property. If you find a bankrupt- cy deal that will work for your business, make sure to have your attorney review the documents the first time you complete this type of transaction. The verbiage required by the courts can be a little bit dif- ferent than traditional sales. Divorce leads are another area where you can get great deals on homes to rehab. In fact, many times the court will order a home to be sold in order to complete the divorce, making both parties more than eager to sell the home at a competitive price. Be forewarned, though, that relationship issues may cause one party to refuse to sign to complete the deal. Have your attorney review the sale documents and ensure that you can remove yourself from the contract if there is a delay due to a disagreement between the divorcing parties. WHERE CAN YOU GET PROBATE, DIVORCE AND BANKRUPTCY LEADS? Knowing that these leads are available is one thing. Knowing where to find them is another. Luckily, there are professional ser- vices, such as industry leader U.S. Probate Leads, which can provide these leads to you. Specific to each county, these leads can be deliv- ered right to your inbox. Using a professional lead service can save you time and frustration in having to go to the courthouse, sift through leads and try to find the ones that will work for your business. Contact us to learn about our flex- ible pricing and our quick delivery services. Call now or visit our web- site at PAGE 35 • 2016
  33. 33. July 18-20, 2016 Hyatt Regency Newport, Newport, RI Family Office & Private Wealth Management Forum “The Race for Returns” For more information visit
  34. 34. Real estate and mortgage fraud could reach a new peak in 2016. What are you doing to protect yourself? PROTECT YOURSELF FROMFRAUDNOW A Special Report By Tim Houghten PAGE 37 • 2016 FRAUD
  35. 35. D ata compiler CoreLogic predicts “2016 could reach highest fraud risk since the crisis,” with some of the largest increases coming to some of the least expected metro areas. Mortgage and real estate fraud has been growing again for the last six years, and everyone needs to be on alert. BACK, BIGGER AND BADDER THAN EVER • In Q3 of 2015 Mark Zuckerberg was scheduled to face trial for real estate fraud. • A NYC crime wave involving stealing title to homes with fake deeds has resulted in 525 Depart- ment of Finance investigations as of February 2016. • A Portland real estate agent is accused of conning an 82- year- old woman into signing over her home. • Dozens of court cases were covered by the Mortgage Fraud Blog during the first six weeks of 2016 alone. • We discovered investors blatantly boasting of getting away with mortgage fraud on Real estate fraud is a big issue, and it’s growing. Indi- viduals must not only com- plete their due diligence when purchasing property, but must remain diligent all of the time. Do not underestimate the risk. Unsuspecting property own- ers can lose their homes, and can still be on the hook for the entire mortgage. Yet, that pales in comparison to some of the other consequences of being caught up in fraud. All real estate industry partic- ipants need to protect the business in order to preserve their future income and wealth. Perhaps scariest of all is when inves- tors become victims by being caught up in fraudulent activities. This permeates through all levels of the industry from borrowers, to REALTORS®, to mortgage brokers, bank loan officers, lawyers, title com- panies, appraisers, and even politi- cians and celebrities. These cases are now investigated by a vast number of agencies and special task forces who are pro-actively on the hunt for cases to investigate. These agencies include the FBI, Securities and Exchange Commission, and U.S. Secret Service. No shortcut is worth the penalties. Once charges are piled up including wire fraud, mail fraud, and bank fraud, some of which can individually carry 30 years sentences for each offense, individuals can easily be looking at a life sentence in real prison. We dug in, and interviewed frontline professionals who have to combat fraud, and keep their clients safe. Here’s what they said… Combating Title Fraud in NYC Dave Ratner of Sotheby’s International Realty in NYC says, “In New York, the buyer’s attor- ney orders the title. But the title companies should be vetted by the borrowers, as they are paying and receiving the insurance policy.” STEPS FOR SAFETY 1. Not allowing for power of attorney on sellers’ side of the transaction. 2. Verifying signatures and valid forms of government issued identification. 3. Pulling the most recent deeds prior to the transac- tion through a continuation search on the property. Discerning Legitimate Help from Scams Just as damaging can be property owners tuning out to phone calls and the mail, out of fear of fraud, and over- whelming amounts of noise. So how can owners spot the real deal when their loans are sold or transferred? Fuquan Bilal of National Note Group says “We usually send our borrower a shock package that includes a copy of original mortgage and note. Any assignments or allonges to prove the chain of title is complete and in 10 COMMON TYPES OF MORTGAGE & REAL ESTATE FRAUD IN 2016 1. Identity theft 2. Craigslist rental fraud 3. Wire fraud 4. Occupancy fraud 5. Title theft 6. Bait and switch 7. Money laundering 8. Falsified loan applications 9. Forced placed insurance 10. Extortion
  36. 36. order. The last assignment in the chain will be to our company and that’s our proof. It’s always good practice to record all of your Assignments and give constructive notice.” Mortgage Fraud Trends Tom Rydberg of 1st Advantage Mortgage which is licensed in FL, CA, AZ, IL, MI, and WI, says “Lender bait and switch can be tough to identify because there are many legitimate reasons for terms to change during the loan process. Online lenders who advertise dramatically lower rates than the rest of the industry should be a red flag. A history of consumer com- plaints is certainly an indicator to watch for too.” Additionally Rydberg notes that “Occupancy fraud continues to be a problem. But it’s not just borrowers claiming they plan to occupy a property when they really intend to rent them out. Now buyers who plan to occupy a property are stating they will be investments so they can use future rental income for qualifying.” In the New Realm of Real Estate Crowdfunding Gene Trowbridge, Esq. CCIM, CDEI, of Syndication Lawyers warns that “One of the largest areas of fraud I see is the sponsors of the syndication use the money of the investors before they break impounds and have the permission to use it. Not that they always use it for improper purposes, but they use it before they have permission to.” Staying Safe When Investing in Real Estate Philip W. Boesch, Jr. of the Boesch Law Group says, “Fraud comes in many ugly disguises and each one has its own story. One all-too-common theme is when misrepresentations, and omissions of material facts, induce an investment in the first place. Insistence on a real Private Place- ment Memo, or on projections prepared by a successful CPA, are routine protections. But even built-in protections like that don’t guarantee that trustees or managing members won’t put their interests above those of investors. When a fiduciary engages in self-dealing, it may be fraud but it’s not always obvious or easy to catch. When you suspect things are going wrong, you can demand to inspect the records of the business under the ap- plicable sections of the Corporations Code. Better still to catch it before it happens -- we suggest that investor carefully review the Lexis-Nexis legal records and social media for anyone with whom you plan to do business.” SEVEN QUICK TIPS FOR STAYING SAFE 1. Always stay protected with insur- ance, and title insurance 2. Watch for classic fraud indica- tors and typical clues i.e. requests to money directly 3. Use a credit tracker and ID theft protection service to stay alert to changes 4. When it comes to documents – if it is not true don’t sign it 5. Always investigate who you are doing business with first via online reviews, public records matches, licensing board com- plaints, copies of ID, and verifi- able references 6. Always have a great real estate attorney on retainer, just in case 7. Stay away from businesses with inadequate or non-existent security protocols for your sensi- tive information What if I Suspect Fraud? Fraud is extremely serious. Just being connected to a business or merchant who has been engaged in fraud can bring a lot of stress. If you suspect fraud run. However, before filing a complaint do make sure that your assumptions are accurate. An accusation of fraud can lead to businesses being shut down, many individuals landing in jail until they can prove they are innocent, and many children seeing parents dragged away in handcuffs at gun point. This alone will bankrupt many families and end their careers, even if they are later proven innocent. Ask questions and make sure you are clear about what happened first. Talk about it with a legal profes- sional. Then if you are certain there was fraudulent intent, do protect others, yourself, and the indus- try by filing complaints with the appropriate agencies and depart- ments. “Lenderbaitandswitchcanbetoughtoidentifybecausetherearemanylegitimate reasonsfortermstochangeduringtheloanprocess.Onlinelenderswhoadvertise dramaticallylowerratesthantherestof theindustryshouldbearedflag.”
  37. 37. Randy Hughes explains how real estate investors benefit from the use of land trusts. Holding Title in a Land Trust or Limited Liability Company STRATEGY I have written a lot about the virtues of holding ti- tle to your investment real estate in a Land Trust, but confusion persists. Most attorneys advise their clients to title their property in a Limit- ed Liability Company (LLC). The reasoning is that LLC’s give better asset protection than Land Trusts. While it is true that LLC’s provide better asset protec- tion than Land Trusts it makes no sense to put more than one property in ANY one entity. Think about it, didn’t our grandparents tell us “not to put all your eggs in one basket?” What exactly does this mean? When our country was primarily occupied by farmers (and many of them were chicken farmers), it quickly became common knowledge that when you were col- lecting eggs in the chicken coop you did not use just one basket. The reason why you used more than one basket was if something happened to that one basket (i.e you dropped it, stepped on it, something fell on it, the cows sat on it, etc.) you could lose ALL your eggs. With multiple baskets you could at least end up with something to eat. This logic holds true with real estate too. If you hold the title to your property in any one entity (i.e. Land Trust, LLC, Corporation, etc.) and a claim occurs against one property it can infect/affect the other properties. This is just common sense, but since only 5% of the lawyers in the U.S.A. are asset protection specialists poor advice abounds. Think about this logically. If you own five properties and they are all titled in an LLC and a lawsuit occurs against just one property... all the properties will be af- fected. Oftentimes in a lawsuit a judge will order that no assets be transferred by the “owner” (read: your LLC) even before the jury has rendered its verdict! This means that you can’t sell or refinance ANY of the properties in your LLC until the lawsuit is over. Most lawsuits take years to resolve. Are you getting to see the picture here? I hope so. Furthermore, if you lose the lawsuit and a lien/judgment is recorded against the “owner” (your LLC) you have ALL your equity tied up (in all properties held inside the LLC) until a resolution can be negotiated with the Plaintiff. This puts you in a terrible negotiating position and you will likely be the big loser. You would also likely be restricted on your ability to transfer memberships in your LLC. One of the benefits of getting older (and hopefully wiser) is experience. Not only your own personal ex- perience, but that of your peers. Over the last 44 years PAGE 40 • 2016 Continued on pg. 112
  38. 38. C apitalizing on the opportunities out there, and securing deals to ensure a solid financial future is still reliant on the ability to obtain real estate financing. AssetAvenue doesn’t just have the money, but prides itself on constantly opening up new in-de- mand loan products that enable investors to make power moves with loans that actually serve them well. So who is AssetAvenue and what do they of- fer? How are their solutions different from what the real estate investor has encountered before? TheNewAvenue ForFinancing RealEstateAssetsAssetAvenue’s VP of Marketing, Jacqueline Thomas gave us the 411… THE BACKGROUND ABOUT ASSETAVENUE AssetAvenue is an online nationwide direct lend- er, offering real estate investor loans on rehab and rental properties in 44 states. They use technology to improve the way entrepreneurs borrow money for real estate investment properties. In addition, they partner with institutional capital providers that allows them to offer competitive rates and friendly loan terms. Their innovative online EXCLUSIVE INTERVIEW By Tim Houghten PAGE 42 • 2016
  39. 39. platform and propriety data models enables them to deliver new bench- marks for speed, transparency and flexibility to borrowers and brokers; traditional banks and hard money lenders simply can’t compete. Their differentiator is providing borrowers with financing solutions that are completely transparent, top-notch customer service, and instant online quotes. They pride themselves in providing real estate investors with simple, quick and reliable online lending. THE REHAB LOAN AssetAvenue’s flagship loan product is their rehab loan. Some unique features of the fix-and-flip loan product is lower rates than hard money lenders, no junk fees, free quotes without doing a credit check, and 10-day funding. Customers like Scott Moore with BBS Development have high praise for AssetAvenue’s rehab loan, “I wouldn’t have been able to close and be awarded the property without AssetAvenue.” THE 30-YEAR RESIDENTIAL FIXED RATE RENTAL LOAN Many income property investors haven’t been finding the love they expected when shopping for deals and investment property loans. Some lenders and turnkey property promoters have tried, but just haven’t been able to create a product that fits well. AssetAvenue is a mortgage lender specifically created to fund investors. Jacqueline Thomas tells us that the 30-year fixed has been in high demand. “It just makes sense,” she says, adding: “Our real estate inves- tors asked for a product that would expand their investment portfolio and we delivered. The new loan product is to finance the purchase of rental properties, including single-family homes, two to four multi- tenant units, condos, and townhouses.” Thomas further explains that rental loan approval is primarily driven by the property’s rental income, with minimal requirements regarding personal earnings. AssetAvenues’ unique features open up alternative capital and credit for entrepreneurs who are often rejected by traditional lenders. IS THIS THE PATH FOR YOU? Indicative transactions and references from others on the site reveal both real estate brokers and investors have found this channel extremely valuable, if not invaluable in saving deals that have run into challenges. In an industry with numerous financial resources running on impersonal automation, it’s evident that AssetAvenue truly listens and understands what it takes to set investors up for success. What’s going to be really exciting is seeing what loan program features this tech- savvy lender will roll out next. For more information or to get a quote online, please visit: The rental loan approval is primar- ily driven by the property’s rental income, with min- imal requirements regarding person- al earnings. This unique feature opens up alter- native capital and credit for entre- preneurs who are often rejected by traditional lenders. PAGE 43 • 2016
  40. 40. ‘DRIVERSSEAT’MediaFor RealEstate&Hospitality 3D Virtual Reality is going to change the way you shop for just about everything, and two independent TV producers are on the cutting edge of making this happen. They’re using new media technology that captures spaces in 3D, effectively al- lowing consumers to feel like they are walking through a house, or viewing art in a gallery, or checking out a fitness club or hotel suite, all from the convenience of their computer or mobile device. “This technology really excites me,” reveals Bary “Cutty” Cutler, co-owner of Marina del Rey-based “Initially seeing it in use inspired us to expand upon our current independent media ser- vices of film and TV production. With the advent of social media, internet and new progressive TV outlets, people are more accustomed to viewing their media in an engaging “driver seat” mode, (rather than traditional passive viewing). “I knew the minute we implemented this technology it would be a game changer,” says Gregg McAllister, his partner. So far so good, as the production team recently pro- duced multiple 3DMediaTours for Maui-based Royal Lahaina Resort, owned by Hawaiian Hotels and Resorts (HH&R). HH&R President Tom Bell says, “I love it. It is a great sales tool for our website or when we are on the road talking to our accounts. We’re happy to be among the first resorts in Hawaii to use this game changing technol- ogy with the expertise of 3DMediaTours.” The 3DMediaTours technology allows viewers to see a property from many different angles and elevations. The interior view allows the user to not only look up, down and sideways, but literally walk through the entire space either on their own with keyboard controls, or with the help of an automated walk-through tour featuring high- lights of the property. So now visitors can not only see the room from one perspective, but from every perspective, including the view from their lanai or from inside the shower if the viewer prefers. There’s also a unique “dollhouse” view, which allows (roofless) overhead and angular views of an entire single or multi-level property from various eleva- tions. Two Childhood Buddies Turned TV Producers Make Visual Magic BY LORI PEEBLES TOOLS PAGE 46 • 2016
  41. 41. “For REALTORS®, our product means ‘open house’ 24/7 for local agents, and especially for out-of-town clients in other time zones,” Cutler explains. We believe this makes a powerful tool as anyone whom has walked through the model, and later visits in real life, is clearly a well-qualified buyer. The 3D model can also be embed- ded into the REALTORS®, website or MLS sites. In addition, techs at 3DMediaTours are constantly adding more features to the quickly evolving platform. A recently added feature allows them to “tag” items in any space. When viewers run their mouse over the tag or tap it, a pop-up screen appears giving more details about the tagged item. Let visitors know the countertops are gran- ite, details on appliances or what type of wood the floors are made of...etc. The fun doesn’t stop there, brand-new features include visitor analytics, allowing owners to track impressions, visits, and unique visitors over time, as well as the abili- ty to generate professional, schematic floor plans. The user experience is completely unique. It’s not a photo nor a video. It’s totally immersive, putting you in the space with free will to move around it. Visitors can stay as long as they like and come back as often as they wish. “When businesses provide such rich content for their customers, they will tend to stay longer on the website. That has the potential of generating more sales. The great thing is the virtual experience stays the same whether viewed on an iPhone, iPad or other device,” says Cutler. Virtual reality eye wear will further enhance the effect of virtually being in a space, (but is not necessary). Cutler and McAllister say they originally ventured into this side of the production business because they PAGE 47 • 2016 wanted to use their film and TV skills to provide yet an- other way in which to view real estate and other interior spaces, adding more clarity and detail to teach experi- ence. This filming duo has vast experience to crafting in all multi-media formats including video, photo... and also utilize the cutting-edge looks available from aerial footage drones. While a 3DMediaTour is something much more sophisticated and engaging than a photo or video, hi-resolution photos and HD video tours can be created from the product, all in one visit. This eliminates the need to hire multiple service vendors. “We run a ‘boutique’ style operation, catering in great detail to our clients’ needs.,” says McAllister. “We will travel to your location, map out a production plan, then execute with precision.” The two production partners have enjoyed making films together since elementary school when they would frequently borrow Cutty’s dad super 8 movie camera and make short films. The fun has continued for the past 40-plus years, manifesting itself in various music, film and TV projects. Recently one of their short films about the historic B&B ‘Venice Beach House’, was an official selection at the NewFilmakersLA film festival. Current- ly, they are working on a pro social reality show, editing episodes of their long-running syndicated educational TV show, as well as raising money for a documentary about the growing epidemic of cyber bullying entitled “WORDS HURT”. In fact, the two believe strongly in giving back to the community and look for projects that allow them to do that. Some proceeds from their 3D shoots will benefit the WORDS HURT Foundation, an organization in which Cutler serves as national ambassador. McAllister serves as Executive Director for the Mahalo Maui Project, which is committed to growing, harvesting and distributing organic produce to those in our commu- nities who need it most. To engage these entre- preneurs about capturing your spaces or learning more about their charity projects please contact or go to or call 808-960-5721