Debunking Common Myths About Land Trusts

7
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Randy Hughes
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Victoria Kennedy
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12
41
3 Ways Automation Tools
Are Helping RealEstate
Investors (REI)
Become Successful
Victoria Kennedy
49
10 Growing Real Estate
Markets to Explore
Stephanie Mojica
55
The Benefits
of Buying
Brand New Homes
Adiel Gorel
63
Strength in Numbers:
Victor Cuevas Gives Us Advice
About Crowdfunding as a Tool
for Investments
Victoria Kennedy
TABLE OF CONTENTS
Serving Investors Since 2007
Realty411
16
Join REALTY411 for a
VIRTUAL or IN-PERSON
Investor Event
Linda Pliagas
24
Myths About Land Trusts
Randy Hughes
32
Why You Need to Create
a Customer Plan
for Your REI Business
Sharon Vornholt

13
71
12 Steps to the Closing Table
and the Big Check
Kathy Kennebrook
79
An Investor’s Guide to Investing
Retirement Funds in Real Estate
Mark Robbins, J.D.
87
Giving the Land
A Voice
Bruce Kellogg
93
Yes, You Can Sell A Property
Without Completing Renovations
Los Angeles County Real Estate Investors Association
98
7 Bookkeeping Mistakes
That Real Estate Business Owners Make
Leon McKenzie
101
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24
I
write and teach a lot about the many benefits to using a
land trust to hold title to real estate investments. There is a
lot of misinformation in the marketplace about Land
Trusts and a lot of bad advice given regarding these
Grantor Revocable Title Holding Trusts. After using these trusts
for over 40 years I have found that the myths outnumber the facts.
In this article, I will dispel some of the myths that I hear over and
over.
MYTH: My lender will not let me close my deal using a Land
Trust (LT).
TRUTH: This depends on if you are using borrowed funds from
a lender that must qualify you in the secondary market. If you
must meet secondary market guidelines it is true that you must
close the deal in your name, but you can put the property into a
land trust the day after closing. Once you have four secondary
market loans (the maximum allowed) you must use a portfolio
lender and they WILL let you close by taking title directly from
the seller to your trust. (So, you are never in the chain of title.)
Note: Bank of America WILL let you close four secondary market
loans using a land trust to take initial title. However, you must
use an Illinois Land Trust and the property must be in Illinois.
MYTH: Do I have to get a tax ID number for my LT?
TRUTH: The answer is no. Nor do you have to register your
trust agreement with anyone on planet earth! (There are two
states that I am aware of that require disclosure of the beneficiary
upon creation of the trust, via the deed to trustee, but this problem
is easily solved.)
Myths About Land Trusts
By Randy Hughes, Mr. Land Trust
Image by Tumisu from Pixabay

25
MYTH: You cannot do a Short Sale using a LT.
TRUTH: False. You can and I have and there are many
advantages to using a LT for this type of transaction.
MYTH: Is it true that I must record my trust agreement to
make it valid?
TRUTH: No, and 99% of the time you would not want to record
your trust agreement. However, there is that 1% reason that you
might want to record. Contact me if you want to know why.
MYTH: My attorney says land trusts are illegal in my state.
TRUTH: This is probably not true. Almost all states recognize
the validity of a LT or a similar type entity (Title Holding Trust,
Common Law Trust, etc.). My experience is that a vast majority
of lawyers do not understand land trusts and therefore do not
recommend them. Too bad for their clients...they are missing out
on over 50 reasons to use a land trust (I have written a booklet
called, “Reasons to Use a Land Trust” and will deliver it to you
for free, if you text the word reasons to 2062032005.
MYTH: If I use my LLC as the beneficiary of a land trust, I
must register the LLC in the state where the property (held
inside the land trust) is located.
TRUTH: Wrong! Many accountants will tell you this, but they
are incorrect. The beneficiary of the land trust is not "doing
business" in the state where the property is located...the land trust
is...and the land trust is not required to register.
Note: California has a law that says if you transfer more than
49% of ANY entity that owns property in CA or is the
beneficiary of a trust that owns property in CA, they have the
right to tax you.
MYTH: Land trusts are expensive to set up and maintain.
TRUTH: Not true. If you follow my advice to put each of your
properties into a separate land trust and you hire an attorney to do
this for you, it WILL get expensive. But you do not need to do this.
You can learn how to set up and administer your own land
trustssimilartype entity (as many as you need/want).
Image by FreePhotos from Pixabay

26
lMYTH: Land trusts must have incorporation papers and the
State notified
TRUTH: Wrong again! Land trusts are not registered like
corporations and LLCs on a statebystate basis. In fact, they are
not registered at all...anywhere! This is one of the many reasons
to start your estate planning with a land trust for each property
you buy.
MYTH: I was told that my land trust must open an account at a
local bank
TRUTH: Not true. Since land trusts are "passthrough" entities
in the eyes of the IRS, you do not need a separate bank account
for each land trust you form. You can set up an account, but it is
not required. If you set up an account for your land trust, you
will not have a tax ID number to use so you will have to use your
own Social Security number. Or, if your LLC is the beneficiary,
you might use the tax ID # for your LLC).
MYTH: It is illegal to hide the ownership of property
TRUTH: I love this one. WRONG! It is not illegal to hold
title to your real estate in a land trust to conceal the ownership
(I call this being private about your business). The past
president of the United States, Barack Obama, owns his home
in Chicago, IL in a land trust with his attorney serving as the
trustee. If it is good enough for a president, it should be good
enough for you!
MYTH: Can I buy the beneficial interest in a LT without buying
title insurance
TRUTH: Yes, you can, but I would not suggest doing this. I
would always get a title policy and have the proper "search" done
prior to transferring any funds. You want to make sure that the
trustee has clear title and there are no unknown liens or
judgments against the property. You should also obtain a copy
of the trust agreement and make sure the trustee acknowledges
EVERYTHING!
This is certainly not a complete list of misconceptions about
land trusts, but is enough to digest for now. I will write more on
this subject in future articles. Feel free to contact me if you have
any specific questions. My number is: 2173551281. Or, email
me at randy@mrlandtrust.net
ABOUT RANDY HUGHES
Mr. Land Trust
I encourage you to learn more by going
to my FREE online training at
www.landtrustwebinar.com/411 and text
“reasons” to 2062032005 for my free
booklet, "Reasons to Use a Land Trust.
You can also reach me the oldfashioned
way by calling me at 2173551281. (I
actually answer my own phone unlike
most other businesses in America today!)
Image by Gerd Altmann from Pixabay

32
T
oday I want to talk
about why you need to
create a customer plan
for your real estate
investing business (in
addition to a marketing plan) and
exactly what a customer plan is. This is
a new concept for real estate investors,
but it’s something savvy businesses
have been doing for a while.
What’s the Difference Between
a Marketing Plan and a
Customer Plan?
Simply put, a marketing plan is used
to get leads. It’s used to attract
motivated sellers.
Your customer plan details your
process or what you do to cultivate
those leads. The goal should be to have
a repeatable process for nurturing the
people who come into your business as
leads.
Let’s Look At Your Marketing
Plan
One of the first things you probably
learned when you started your investing
business was that your #1 job is
marketing. You won’t be in business
very long if you don’t have a steady
stream of leads coming in the door.
There are a lot of things you can put off
but marketing isn’t one of them.
In order to effectively market your
real estate business so that you always
have leads, you must have a marketing
plan.
Once you have implemented your
marketing plan, it’s time to move on to
your customer plan.
Exactly What Is a Customer
Plan and Why Do You Need
One?
A customer plan is a document that
you create for your specific business.
The customer plan for a real estate
business would look much different than
one a doctor created for their medical
practice.
If you look at most businesses, they
spend a lot of time writing business
plans and marketing plans that attract
customers. However, almost no one has
a plan for keeping those customers
(AKA motivated sellers) once you have
gotten them to call you. Real estate is no
different from any other business; it’s all
about the customer. In our business they
just happen to be folks who want or need
to sell a property.
Your customer plan should be a
detailed document that outlines everything
needed to create a remarkable customer
experience. This is the time for
innovation; the time to think outside the
box. If you really want to be the standout
company in your marketplace, you need
to find a way to reinvent the way you do
business and deliver that exceptional
customer experience.
Once you have created your customer
plan, it also serves as a roadmap for
making your company the absolute best
company in your market.
Why You Need to Create
a Customer Plan
for Your REI Business
By Sharon Vornholt
Photo by Startup Stock Photos from Pexels

33
Companies that Got it Right
When you talk about companies that
disrupted their markets, the first two
companies that immediately come to
mind are Uber and Airbnb. These
companies “reimagined” the taxi
business and the hotel business.
Uber changed the model of taxi
business forever. People everywhere
like riding in a regular automobile much
more than a stinky taxi. Airbnb is
another company that completely
changed the customer experience. They
reinvented the way customers choose
accommodations when they travel. They
are definitely giving hotels a run for their
money.
What about cameras and voice
recorders? Smart phones have pretty
much replaced the need for both of these
devices. They forever changed the way
we take pictures on the go.
When I think back to the company
that changed the way real estate
commissions were traditionally paid,
RE/MAX was responsible for that major
change. Agents no longer had to share
their commissions with the broker/office.
If you are a RE/MAX agent, you pay a
fee for everything; office space, copies
etc. but you don’t share your commission.
They reimagined the way REALTORS®
get paid.
So the next question is …. how can
you create a customer experience that is
so different than what people are used to
that you become “the one” they all want
to work with?
It All Starts with the Customer
The first step is to know your potential
customers. Don’t worry about your
competition; worry about your customers.
Once you know who your ideal customer
is, then it’s time to create the best
customer experience possible. Focus on
creating the experience and the rest will
take care of itself.
Of course ultimately this is about
getting the deal. But more than that, it’s
about creating raving fans that result in
referrals, testimonials and repeat business.
Nurturing Your Leads
It’s easier (and cheaper) to nurture a
lead than get another one. That’s a fact.
Now don’t mistake this for trying to make
a deal work that really isn’t a deal. That’s
not what I’m talking about. This is about
creating an experience for the seller at
every touch point that is remarkable.
So the next
question is … how
can you create a
customer
experience that is
so different than
what people are
used to that you
become “the one”
they all want to
work with?
Image by mohamed Hassan from Pixabay

34
This is a very basic overview of the way a real estate deal goes
from start to finish.
1. You spend a lot of time and money generating leads
2. Your marketing results in the seller contacting you
about the property
3. At some point you will have a phone conversation with
the seller
4. The next step is to look at the property if the initial
screening call went well
5. You inspect the property and decide whether or not to
make an offer on the property
6. After negotiations that offer is accepted or rejected
7. If the offer is accepted you will proceed to the
closing/settlement (and get a testimonial)
If you look at the process it’s all pretty mundane. Ask
yourself this; looking at these steps, is there anything there that
would create a remarkable customer experience? I don’t think so.
So let me ask you this:
• If nothing were off limits, what could you do?
• What would you change?
• Is there a way to “reinvent” the way this process evolves?
• Where can you innovate?
Let’s Do a Little
Brainstorming Here
Let’s start with #1, which
is lead generation, and look
at how you might reinvent
the direct mail process.
If everyone is sending the
same direct mail pieces,
letters and postcards, what
can you do differently? How
about sending out a
newsletter with helpful
homeowner tips as your first
mail piece? Instead of
starting with a letter or
postcard that says “I want to
buy your house”, you begin
your relationship with “Hi
I’m Sharon, and I have some helpful tips for you today”. The
point is to make a different first impression than everyone else.
Think of it this way: Send the sellers something they will
enjoy reading, and in the process, they will be introduced to you
as a person rather than a business that wants something from
them (their house). By doing this, over time you become the
trusted resource in your market. At the bottom of your newsletter
let them know that you buy houses and share your contact
information.
Taking this thought one step further, why not replace one
letter or postcard every quarter with something that would be
useful to the sellers like a quarterly newsletter or market update?
Information to create these information pieces is readily available
on the internet, so it’s really pretty easy.
Doesn’t that make a whole different impression than a “we
buy houses” letter or a postcard that’s all about you and your
company? You bet it does.
Final Tips
I would like to challenge you to look at each one of those
steps in the average real estate deal and think of a way you can
“reimagine” the way you do business. Find ways that you can be
remarkable in this crowded marketplace of real estate investing.
Sharon Vornholt
Louisville Gals Real Estate Blog
Photo by fauxels from Pexels

35
MEET SHARON VORNHOLT
Sharon Vornholt is the owner of Innovative Property Solutions, LLC in Louisville, KY.
Sharon owned and operated a successful home inspection company for 17 years. She began
investing in real estate in 1998 and became a full time real estate investor in January of 2008.
Sharon specializes in wholesaling, and is also an experienced landlord and rehabber.
In addition, Sharon is an internet marketer and also writes articles for several national real
estate sites. Sharon is the author of a popular real estate blog called the “Louisville Gals Real
Estate Blog”. For your FREE REPORT “Probates and Absentee Owners: Your Fast Track to Real
Estate Riches”, stop by her blog at: http://LouisvilleGalsRealEstateBlog.com.
FREE BRAND ASSESSMENT AT https://louisvillegalsrealestateblog.com/brandassessment

41
Image by Joshua Woroniecki from Pixabay
R
eal estate investment
is a good business for
multiple reasons. As a
smart investor, not
only can you leverage
on real estate to build your wealth, you
can also enjoy amazing tax advantages
and live the American Dream. But it
takes a lot of serious dedication and hard
work to make money from it.
While most real estate investors feel
the lingering need to handle every part of
their business, it isn't advisable as this is
an easy way of getting worn out especially
when you are trying to juggle multiple
deals at the same time.
Thanks to technology, there are
automation tools primarily designed to
make work much easier for real estate
investors and wholesalers. In fact,
automation tools have become the very
key to attaining success in the real estate
business today from making enormous
profits to sealing deals. Hence, there is a
need to utilize automation tools.
What is Real Estate Automation
Tools?
These automation tools are software
basically designed for accomplishing real
estate tasks and solving laborious
problems investors encounter
consistently and repetitively. As a
successdriven real estate investor, here
are basic reasons why you need to
implement real estate automation tools;
• They provide quick results
• They save time
• They reduce errors
• They promote business operations
There are several automation tools in
existence but the following are a few out
of many that can help you in
boosting work productivity in the long
term and take your real estate business to
higher levels. In other words, handling
all steps from finding properties to
selling them off at reasonable prices.
3 Ways Automation Tools
Are Helping Real Estate Investors(REI)
Become Successful
By Victoria Kennedy
Such automation tools are:
1.Deal Machine: Used For
ResearchingProperties toBuy
High competitive bidding of a rental
property among investors typically
shoots the price higher compared to a
property with low bidding. Imagine
buying a property where your
competitor has little or no idea about it.
This is where implementing Deal
Machine becomes highly advantageous.
It’s one of the best tools to use if you’re
looking for properties that are off the
market and could still be a great deal to
buy.
Accuracy is a crucial factor to
consider in this business and Deal
Machine is one of the best tools that can
provide you with accurate data. For
instance, when you use the app to take a
picture of a rental property, it will
automatically know who to contact
almost immediately.

42
have. REI Reply is an automated tool
that enables both experienced and
newbie real estate investors to effectively
communicate, monitor leads, and close
deals faster and easier. Top lead
generation experts, like Esteban
Andrade, the CEO of Hesel Media, have
tested and recommended REI Reply to
be a reliable tool. “I have all my
investors using REI Reply because it’s
the only tool that has everything an
investor really needs,” he says.
Its easy and accessible system
employs sequential automation to
provide you with a fulltime team that
ensures that your business keeps
running. Its sequential automation
replaces use of Lead Sherpa, Podio, Call
Rail, Pipe Drive, MailChimp, and Sly
broadcast; all of which are responsible
for qualifying leads, tracking and
analyzing phone calls, ensuring that real
estate investors have a premium text
messaging service, and a ringless
voicemail marketing tool for their
business. They also have a deal going on
for only $49/mo, which makes this tool
affordable and reliable.
In summary, automation is a great
way for real estate investors to grow their
business; and with the right application,
success is always around the corner.
ABOUT VICTORIA KENNEDY
Nominated as a 2020 Brand
Ambassador for Inman, Victoria Kennedy
is a wellrespected authority in real
estate marketing. She is the CEO of
Atman Real Estate, a lead generation
agency that is committed to providing
more leads and closings for real estate
professionals.
She is a highly indemand speaker on
all things digital marketing and has
helped many clients boost their visibility
and revenue. Because of her expertise in
real estate, she has been a trusted speaker
and contributor to such organizations as
the National Association of Real Estate
Brokers, Inman News, and Yahoo
Finance.
In addition to running a successful
marketing agency, she also has given
talks, workshops, and has worked as a
trusted consultant for brokers, title
Companies, investors, and topproducing
agents. She has been featured in over 175
publications and podcasts, both
nationally and internationally.
In addition to her marketing expertise,
Victoria is a #1 selling classicalcrossover
singer and has sung with the likes of
Andrea Bocelli, as well as toured all over
Europe with her music.
She is excited to share with you the
power of her Closing Maximization
Method and how it can exponentially
grow your business.
Find out more here: atmanrealestate.com
Additionally, DealMachine searches
public records plus thirdparty data to
give you the property owner’s name,
mailing address, mortgage information,
and more.
2. PropStream: Lead generation
This data provider assists real estate
investors and wholesalers by pulling up
market statistics based on the demographics
that is being entered in the software. It
is dynamically updated with an easy
filtering process. For distressed property
search, users can narrow down their
specific targets such as foreclosure, pre
foreclosure, bankruptcy, divorces, and
so on.
Real estate investors are always on
the lookout for what is happening in the
market and this tool can be an option.
Essentially, it allows the user to see what
is thriving well on their lists. And, with
the data they provide, investors can
easily compose their marketing pitch for
their targets.
3.REI Reply: Used For Automated
Sequential Marketing
This is another crucial tool every
successdriven real estate investor must
Image by talha khalil from Pixabay

49
By Stephanie Mojica, Staff Reporter
H
ousing prices have skyrocketed throughout
the United States, leaving budgetconscious
buyers scratching their heads trying to find
an affordable home in an area with plenty
of work, educational, and recreational
opportunities. The good news is that
dream isn’t a lost cause. REALTOR.com recently released a list
of 10 upandcoming real estate markets.
1. Johnson City, TN
This Tennessee city of about 200,000 people is near the
Appalachian Mountains. The average home price of $379,000 is
about 10% less than the national average of $427,250 (as of
September 2022).
2. Visalia, CA
For California, this city’s median home price of $400,000
sounds almost too good to be true. Visalia is in the San Joaquin
Valley, about 40 miles from Fresno.
3. Elkhart, IN
This city’s average home price of $257,000 is roughly 60% of
the national average. Elkhart is 15 miles from South Bend, 110
miles from Chicago, and 150 miles from Indianapolis.
4. North Port, FL
Florida is another traditionally expensive market, but this city
of 75,000 isn’t one of them. The median home price of $548,000
is about 30% higher than the national average — but it’s Florida.
5. Fort Wayne, IN
Indiana strikes again with its budgetconscious homes and
access to work, education, recreation, and travel. The average
house price in this city of 265,000 is $300,000.
6. Lafayette, IN
This Hoosier State city of 225,000 has a median home price of
$291,000 — roughly 70% of the national figure. Lafayette is
about 60 miles from Indianapolis and 125 miles from Chicago.
7. Columbia, SC
For a capital city, an average home price of $309,000 is pretty
darn good. The secondlargest city in South Carolina, Columbia
has a population of about 135,000.
8. Columbia, MO
As a major Midwestern college town, Columbia has a lot to
offer its 125,000 residents. The median home price of $347,000 is
20% lower than the national average.
9. Raleigh, NC
Another southeastern state capital made this list, and Raleigh is
undeniably one of the best cities in this part of the country. The
average cost of a home in this city of 475,000 is $463,000.
10. Yuma, AZ
Another city west of the Mississippi made this list, with a
median home price of $315,000. This city of about 75,000 is
known for its sunny weather.
10 Growing Real Estate
Markets to Explore

55
B
uying a brandnew home offers many advantages
for investors. Of course, the house is new, and
everything is (or should be) in perfect condition.
If there are any flaws, they’ll be repaired under
the homebuilder’s warranty. You won’t have to worry about
repairs and refurbishments for at least the first few years. There’s
no need to paint, put in new wallpaper or new carpet. For busy
investors, new homes are a godsend.
Some items within the home are also under the manufacturer’s
warranty, items such as the HVAC system, the water heater,
appliances, etc.
Also, because you’re buying the house knowing it will be a
rental property, you can
select the floor coverings,
finishes, and appliances
that will work best in a
rental home. You’ll want
to choose neutral colors
and durable (but not
pricey) floor coverings,
and appliances that can
withstand the wear and
tear of tenant turnover.
Keeping an eye toward
utility, not cosmetic
beauty, will keep your
initial costs down and
minimize future
replacement costs. Of
course, I always
recommend to let the
local teams, REALTORS® and property managers, do the
choosing. They are attuned to the needs of their local market and
what tenants there will like.
Another bonus of buying new homes is that it’s possible to
negotiate with builders for added amenities. We (ICG) usually
give builders a significant volume of sales when our investors
and I buy through our local brokers, making everyone a “large
client” (even if they just bought one home). This, in some cases,
allows our local brokers to eke out extra benefits for our
investors. Often the price of new homes is fixed, but builders are
willing to offer upgrades such as a tile entry, an appliance
package, or other extras at no extra cost. Also, builders are often
more willing than private owners to structure a deal that benefits
you.
When you buy brand new homes, there is another intriguing
benefit. You can possibly earn equity before you’ve closed
escrow. How? Purchasing a new home occurs in two stages. First,
you sign a contract with the builder and make an earnest money
deposit of a few thousand dollars. You don’t have to come up
with the down payment until the house is completed, usually
months later (although sometimes brandnew homes can be ready
now, as I explain below). Currently, in the Sun Belt regions we
are investing in, often the property value rises between signing
and closing. Many investors have purchased homes that have
appreciated a couple of percentage points in less than six months.
If someone wonders what happens if prices fall during the
building period, you can easily back away from the deal, if you
choose, at a minimal cost.
The
Benefits
By Adiel Gorel
Photo by Max Vakhtbovych from Pexels
of Buying
Brand New
Homes

56
Very importantly, new homes define the concept of a good
neighborhood. Where new homes are built, new schools and
shopping centers may be built or close by. In some large new
home developments, homes could be a part of a masterplanned
community with amenities such as parks, swimming pools,
softball and soccer fields, and walking trails, just the kind of place
where most families want to live.
It is not a strict law that buying new homes is best. During the
last recession (between 2008 and 2011) the best strategy was to
buy foreclosed properties from the banks, at low values,
regardless of what their age might have been. However, during
regular (nonrecession) times, brandnew singlefamily homes
are, in my opinion, the best investment.
When you have a 1031 taxdeferred exchange, the time limits
will likely not allow you to wait for new homes to be built from
scratch. In that case, however, there are new homes that are ready
to close now or in a couple of months at any given time. They
would satisfy the exchange time requirements.
Buying new homes comes in three “flavors”:
1) Ready to buy, alreadybuilt homes. These are
relatively rare. In many cases, it’s a new home that
was ready to close, but the buyer’s financing fell out.
2) The home is in the midst of being built, to be ready in
a couple of months. These are not as rare as readyto
close homes, but not very common.
3) The buyer and broker choose a lot, and the builders
begin construction of the home once there is a buyer
with a contract. This is the most common form.
Under ideal conditions, new homes can take anywhere from as
little as four months to about eight months to build. However,
delays can happen for a variety of reasons.
One such reason is weather delays, such as heavy rains, and
other weatherrelated phenomena.
Another possible delay can happen due to local authorities
being slower than expected on permits. Usually, in the Sun Belt
metros we buy in, bureaucracy is relatively minimal. Nevertheless,
bureaucratic delays can happen from time to time. Other reasons
could be delays in builder’s financing, and other reasons. Over
my long history, I have seen builder delays in various markets,
from Phoenix to Dallas, and others.
As a buyer, I am very tolerant of builders’ delays. If the
market is trending up in price, a delay is actually a possible
financial gain for me. I have a contract at a specific price. I only
put a couple of thousand dollars (usually) as an earnest money
deposit. Now if there is a delay and the value of the home is
higher than my contract, I made this extra gain while only having
a couple of thousand dollars tied up, and being able to use the rest
of the down payment money during the delayed period.
Another thing I look at is where the interest rates are heading.
If interest rates are stable, delays don’t interfere with locking a
rate. If rates are trending down, there could even be a gain for me
due to a delay by getting a lower rate when the house is ready.
Photo by David McBee from Pexels
Another thing I look at
is where the interest rates are
heading. If interest rates are stable,
delays don’t interfere
with locking a rate.

57
Another subtle point is that we buy new homes so all the
components are brand new. If there are delays, the components of
the homes could be “newer than new” in the sense that many
components, such as the roof, get put on at a later time.
It took me years to fully understand just how beneficial new
homes are. I also started out as a “cowboy” buying old homes and
renovating them. As the years went by, the brandnew homes
showed consistently better results, while also providing the
smoothest and most hasslefree experience as an investor.
Investors sometimes think that buying an old home and
renovating it will come out cheaper or better. I have seen many
hundreds of these renovations, and somehow they always seem to
fall short in one aspect or another. One example is when a 45
yearold home was bought and rehabbed. The rehabbers forgot
about the 45year old pipes deep in the ground, and indeed those
pipes burst and created a lot of damage.
There is no need to make our lives as investors harder. Brand
new homes present an ideal and optimal investment for both the
new and experienced investor.
I will be discussing this at our upcoming online Expo, while
also hosting expert guest speakers, and the market teams from the
most relevant markets in the U.S. Everyone reading this is invited
to attend for free. Please find the date and register at
icgre.com/events.
ABOUT ADIEL GOREL:
ICG (International Capital Group)
Real Estate Investments was established
in the 1980s. Adiel Gorel, founder and
CEO, has been helping people achieve
financial security for over three decades.
In that time, he worked with investors to purchase over 10,000
homes. Gorel is a real estate broker in several states in the U.S.,
an international keynote speaker, and notable author of three
books: "Remote Controlled Retirement Riches – The Busy
Person’s Guild to Real Estate Investing", "Invest Then Rest –
How to Buy SingleFamily
Rental Properties", and
"Remote Control Retirement
Riches – How to Change Your
Future with Rental Homes."
He has been featured on
major television and radio
networks across the country
and in Fortune magazine. He
has also been featured on
Public Television with his
show, “Remote Control
Retirement Riches with Adiel
Gorel.” To invite Adiel Gorel
to speak for your group, email
info@icgre.com and visit
AdielSpeaks.com. For more
information on ICG Real
Estate Investments, visit
https://icgre.com.
There is no need to make our lives as investors harder. Brand
new homes present an ideal and optimal investment for both the
new and experienced investor.
Image by Michal Jarmoluk from Pixabay

63
A
n important caveat to
real estate investment,
quite simply, it’s
expensive. It requires
more capital upfront
to get going, and for a lot of potential
investors, it just isn’t feasible. But Victor
Cuevas, founder of Griffin Crowd and
Capital, just might have the answer, and
it’s a surprising, but innovative one. He
suggests using crowdfunding!
When we typically think of
investments, the stock market comes to
mind. However, real estate is emerging
as a competitive alternative to stocks,
one that is safer and can often yield
higher returns. But like so much else in
business, real estate investments lead to
portfolio diversity.
Whatever side of the fence you are
currently on, as either a borrower or
investor, see below for a few tips from
Cuevas to get you started.
Learn about Splitting the Bill
As it turns out, investing in real estate
may not be as costly as it seems. With the
rising popularity of crowdfunding —
online platforms for sourcing capital for a
given project — a creative new approach
has emerged for breaking into the
prohibitively expensive, but wildly
lucrative field of real estate investment.
With a little help from crowdfunding,
you could soon be on your way to
making big bucks, while at the same
time, shaking things up along the way.
Cuevas recommends crowdfunding as a
way to expand your possibilities and
adapt to the rising cost of homes. In the
past year alone, Griffin Crowd and
Capital has crowdfunded over 100
residential apartment complexes totaling
tens of millions in profit as a result.
Find Strength in Numbers
David and Goliath was a close one, but
ultimately, the “little guy” triumphed by
sheer ingenuity. Now imagine if it had
been 10 Davids, all equally resourceful,
taking on that single Goliath — it would
almost be unfair. And that’s the idea here.
Cuevas recommends using crowdfunding
as a way of teaming up and pooling
resources to collectively achieve what is
too often reserved for the already wealthy.
It is a great way to challenge the
longstanding dynamic of the “fat cat”
being the one at the top.
Strength in Numbers:
Victor Cuevas Gives Us Advice About
Crowdfunding as a Tool for Investments
By Victoria Kennedy
'Borrowers using a crowdfunding portal have an
advantage because they can get funds from a
wider pool of investors,' said Cuevas. 'While they
typically have to accept a higher interest rate in
order to get additional funds, the access to those
additional investors is typically worth it.'
Victor Cuevas

64
A Man’s Game? Don’t be So Sure
Any number of factors can explain
the demographic disparity of real estate
investment, and investment in general.
From systemic and interpersonal sexism
and racism, to toxic notions surrounding
women and investment in general,
there’s no question: it’s an uphill battle
for women and minority investors.
But one thing is for sure, regardless
of this inadequate representation, there’s
zero truth to any notion that nonmale,
individuals are in any way, shape, or
form “less fit” for the field. The truth is,
there’s just more to work against. While
this may seem so obvious, nevertheless,
the myths floating around can still be
damaging. The key is to try not to be
dissuaded by all these ‘tall tales’—you
know what you’re capable of. As Cuevas
said, “it’s a fastgrowing market” and
now is the best time to get involved!
Learn Where to Invest Sensibly
Real estate is a huge field encapsulating
all sorts of different subcategories
within it. If you’re seeking to maximize
your returns all while keeping your
overhead to a minimum, Cuevas
recommends looking at multifamily
residentials. These have emerged as
popular living arrangements, and they’re
generally cheaper and easier to invest in
than larger properties. Between
collecting rent and easier mortgage
terms, there are numerous advantages
that should put the multifamily
residential towards the very top of your
list when it comes to prospective real
estate investments.
Pick a Winner: Choose the
Right Bank
When investing in real estate, it’s
essential to choose a bank that’s a good
fit for your investments. Cuevas suggests
paying close attention to the experience
and track record of the institutions you
consider. It’s important to be certain that
the bank you go with has enough
experience in the area you’re investing in
to best assist your specific needs. For
example, at Griffin Crowd and Capital,
Cuevas puts his 30plus years of specific
experience in the field at the disposal of
his clients — all the knowledge, know
how, and vital industry connections go
into helping clients ensure the maximum
possible return on their investments.
It can be a daunting prospect, but with
the right approach, investing could
become your next successful venture.
With crowdfunding, it doesn’t have to
cost an arm and a leg, and by focusing on
real estate, particularly multifamily
residentials, you can start generating
wealth easily and with little risk. While
there may indeed be some obstacles
standing in your way, with the help of
creative solutions, careful planning, and a
little teamwork, it might not be such a
distant dream.
MEET VICTOR CUEVAS
Victor Cuevas is
an industry
professional with
over 30 years of
mortgage finance
experience,
including extensive
knowledge in both residential and
commercial properties. He is a successful
serial entrepreneur with a multitude of
accomplished companies and ventures.
Among them, Victor built a mortgage
empire, spanning 36 offices in several
western and central states. He currently
serves as the founder of Griffin Crowd &
Capital, the next chapter in an already
illustrious career. For more information,
visit griffincrowdcapital.com

65
RealEstateInvestorGoddesses.com

71
Your property is under contract, you’ve prequalified your
prospect; they are working with the lender. Everything is
moving right along, right? Not necessarily.
There are several steps to a successful closing, and we are going to
cover those one by one. Now remember, once you have your dream
team in place, you will have the people available who will handle all of
the details for you. In the meantime, you still need to know what all the
steps are so you know everything gets handled properly.
1. Make sure you get a big enough deposit from your buyer so
they have some real dollars invested in the deal. Even if they
are going for one hundred percent financing, I still get as much
as I can in order to secure the deal better. If your buyer puts
down a larger deposit, they are usually more committed to
going through with the closing, so this is a requirement for me.
I won’t even consider a deposit less than $1,000.00, but I
always try for as much as possible. The higher dollar the
property is, the more deposit I require.
2. Make sure that the lender or the mortgage broker orders a
credit report and an appraisal on the property immediately.
Usually, I will not consider a buyer who has not already been
prequalified. Many lenders will try to wait until they get the
contracts and other paperwork in before ordering the
appraisal. This is a nono. If you wait on the appraisal, it can
hold up your closing by two to three weeks. Plus, if this buyer
doesn’t end up buying the property, the appraisal can be used
for the next buyer. Most appraisals are good for six months
and now you have an appraisal that has already been paid for.
3. Follow up with the loan processor to make sure the
appraisal has been ordered and that the other parts of the
closing are moving along. Many times your title agent or
your REALTOR® or your sales person will do this for you.
After all they want to get paid, too. Make sure they have
everything they need from the buyer regarding loan
documentation.
to the Closing Table
and the Big Check
By Kathy Kennebrook
(The Marketing Magic Lady)
Photo by Khwanchai Phanthong from Pexels
12
STEPS

72
4. Follow up and make sure that title
work has also been started. You
want to make sure that everything
is done in a timely manner so that
there are no holdups when you go
to close. Every once in awhile
you may discover some small
glitch in the title work that needs
to be addressed, such as a deed
that wasn’t done correctly. There
would need to be an additional
quit claim deed done to correct
the mistake. Make sure the title
agent understands the contract
paperwork and what entity the
funds are to be paid to. You also
want to make sure they do the
1099 correctly so the right entity
gets taxed. You will also want to
provide the title company with a
copy of the existing title policy.
This means that they will be able
to come forward from the date of
your policy, which takes less time
and this may make the title search
cheaper. Make sure the title agent
understands who is going to pay
for what regarding closing costs.
5. Call the loan processor to make
sure the property appraised for at
least the amount of the contract.
Make sure your buyer has ordered
a termite inspection, a survey, a
random inspection or whatever else
is required by the lender in order
to close. Is there anything you can
do to move things along? If you
have a copy of a fairly recent
survey, you can provide a copy.
This will also save time and move
you closer to the closing. Has
your buyer’s deposit been credited?
Have they gotten the paperwork
they need to the lender including
employment verification and
rental history? These are all
things you need to stay on top of.
6. If your buyers are using city or
county funds to supplement their
loan, there will need to be another
inspection done by the city or
county. This is a stipulation of
their program. Make sure this gets
done quickly in order to address
any issues that could come up
with the inspection. If your buyers
are having a home inspection
done, make sure it is done right
away. Not getting it done in a
timely manner can hold up your
closing.
7. Does the lender have your
information in order to be able to
order a payoff on any underlying
loans on the property? Have they
received the payoff yet and have
you reviewed it to make sure it is
correct? Don’t just assume that
because they have been given
figures that those figures are
correct. Make sure they fax you a
copy of the payoff for you to
review. Double check the per
diem amounts and make sure you
aren’t being charged a prepayment
penalty, if there isn’t one due.
Make sure the most recent
payment has been credited against
the amount due. These are problems
I have had to deal with. If the loan
is with a private lender, sometimes
it takes even longer to get a payoff
from them. Some of them don’t
know how to prepare one, so they
need the help of the title company
or their real estate attorney for this.
This is also the time you might be
able to negotiate a discount with
them. This works especially well if
it was a sellerheld mortgage. We
have gotten private lenders and
sellers to negotiate discounts on
loans on several occasions, which
just made our paycheck bigger.
Image by Markus Winkler from Pixabay

73
8. Has the buyer’s loan been approved? If not, find out what the
problem is and how to fix — it if it can be fixed. If the loan
has been approved, find out what the proposed closing date is
going to be. Has your buyer ordered insurance yet? You need
to check this out, and it needs to be done as soon as possible.
This is another area where you could have a glitch. Sometimes
the age of the property or the location of the property becomes
an issue. For example, here in Florida where I live, if there is a
hurricane brewing, we end up in a “box”, which is a period of
time where you can’t buy insurance until a hurricane passes.
This can hold up a closing for several days, unless the insurance
is already in place. A buyer must purchase a homeowner's
policy for one year and it must prepaid at closing.
9. If you are selling a condo or a home with a homeowner's
association (HOA), make sure the lender and the buyers
have a copy of the HOA rules and documents. Ensure that
the buyers have set up their appointment for their meeting with
the condo association or homeowner's association. If they are
not approved by the condo association or homeowner's
association, the rest of the closing is a moot point. You need to
make sure your buyer’s get through this process successfully.
10. So now we have a set closing date. Make sure you contact
the closing agent to make sure you get a copy of the HUD or
closing statement before the closing takes place and before
you arrive at a closing. Recently, we had a closing that didn’t
take place because once we received the HUD, all the figures
including the asking price and sellerassisted closing costs,
had been changed. The closing price listed on the HUD was
several thousand lower than the contract had called for. I
have never seen anything like it and the deal never closed.
Check the numbers! If there is a REALTOR® fee involved,
make sure the percentages are correct. Check the prorated
amounts you are being charged for (property taxes or
association fees). When you close on a property during the
year, say in June, and property taxes are due in October, you
have to reimburse the buyer for the property taxes until the
closing date in June. The same would go for any association
fees there might be. You will have to reimburse the buyer for
the period during the month that they did not own the property.
Double check to make sure these figures are correct. In my
contract, if we are assisting the buyer in any way with
closing costs, the buyer can’t walk away from closing with
more than $500 dollars. So, this is another figure we check.
Any amount over $500 dollars is credited back to our side on
the closing statement.
11. Call your buyer and make sure they have received a
cashier's check for any monies they have to bring to
closing. Verify they know where it is and what time the
closing is. Make sure they bring a photo ID with them. The
lender will require this. Believe me when I tell you that these
are all lessons learned from experience.
12. Now, show up at the closing and don’t forget to bring the
keys and garage door openers. Take several deep breaths and
try to relax. Once you get through the closing, take another
deep breath. Then call your spouse and go out to dinner to
celebrate!
Image by ClkerFreeVectorImages from Pixabay
Photo by Karolina Grabowska from Pexels

74
Here is another point for you to consider. In my business, it
is rare that I go to closings anymore since the whole closing
process is outsourced. The funds from the closing are directly
wired to an account for us, so we get paid right away. If I do
go to a closing, I don’t go at the same time as the buyers. I
usually go right after they are done with all their paperwork.
The paperwork on a closing for a buyer is fairly time
consuming and needs to be explained to the buyer by the title
agent. I don’t like sitting at closings for an hour or more until I
need to sign my documents. If you have done your due
diligence and followed all the steps in the closing process,
there isn’t really anything that can go wrong at the last minute,
so breathe easy.
Then when you get through the closing, cash your check or
make sure your wire has arrived and celebrate!
For more information on real estate investing tools and
marketing to find motivated sellers, buyers and lenders visit
Kathy Kennebrook’s website at www.marketingmagiclady.com.
While you are there, sign up for the free monthly newsletter and
receive $149 in real estate investing tools absolutely FREE!
KATHY KENNEBROOK
Kathy Kennebrook is the
ultimate success story. She spent
over 20 years in the banking
industry before discovering the
world of real estate. After
attending some real estate
seminars this 4 foot 11 mother of
two got really excited and before
you know it she’d bought and sold hundreds of properties using
none of her own money or credit.
Kathy holds a degree in finance and has coauthored the
books The Venus Approach to Real Estate Investing, Walking
With the Wise Real Estate Investor, and Walking With the Wise
Entrepreneur which also includes real estate experts Suze Orman,
Robert Kiyosaki, and Dr. Wayne Dyer.
She is the nation’s leading expert at finding highly qualified,
motivated sellers, buyers and lenders using many types of direct
mail marketing. She is known throughout the United States and
Canada as the Marketing Magic Lady. She has put together a
simple stepbystep system that anyone can follow to duplicate
her success.
Kathy has been speaking throughout the country and across
Canada for over 14 years and has shared the stage with Ron
LeGrand, Dr. Phil, Dan Kennedy, Mark Victor Hansen, Ted
Thomas and Suze Orman to name a few.
Kathy is going to share with you how she generates a seven
figure income by mailing a handful of letters throughout the year
to highly selected targets by knowing exactly what to send them,
who to send them to and exactly how to deliver her message. She
will teach you the secrets of prescreening and automating your
marketing and follow up systems to put your entire Real Estate
business on autopilot.
'Check the numbers! If there is a REALTOR® fee involved make sure the
percentages are correct. Check the prorated amounts you are being charged
for property taxes or association fees. When you close on a property during
the year, say in June and property taxes are due in October, you have to
reimburse the buyer for the property taxes until the closing date. The same
would go for any association fees there might be. You will have to reimburse
the buyer for the period during the month that they did not own the property.
Double check to make sure these figure are correct.' Kathy Kennebrook

79
T
he ability to
purchase real
estate with your
IRA or other
retirement funds
has been in
existence for many years. However,
until 2004, banks in the United
States would not lend money to the
investors without requiring the
investors to guaranty the loan. If an
investor wanted to buy real estate
with retirement funds, they had to
pay in cash. In 2004, a littleknown
bank in the Mid West became the
first residential lender to create what
today is known as a nonrecourse
residential loan. This program was
originated to allow for the purchase
of real estate with various retirement
funds such as: selfdirected
retirement accounts (SDIRA), Roth
IRA, Solo 401K, an IRA/LLC
account, or other trust accounts with
retirement funds.
With this type of loan, the non
recourse loan, the investor can obtain
leverage with a mortgage to buy one
to fourunit properties. Today, it is
now a highlyacceptable and useful
way to invest one’s retirement funds.
Many of the betterknown
retirement fund custodian companies
such as Equity Trust (Ohio), uDirect
IRA (Irvine, CA), New Direction
Trust Company (Colorado), Lending
Resources Group (owned by me,
Mark Robbins), and other retirement
management firms have passed the
word on to their investors that they
can use a nonrecourse loan to invest
their retirement funds in real estate.
In addition, a few banks have cropped
up since the first pioneering bank in
2004 to provide nonrecourse
financing for all different types of
residential properties.
Lending Resources Group (LRG)
has become a wellknown expert in
nonrecourse lending. The author has
been counseling investors since 2004
about the “ins and outs” of investing
retirement funds in real estate. He
has established longterm relationships
with many of the custodial companies
as well as the lenders in this unique
lending arena. His experience and
knowledge with the nonrecourse
loan will offer the borrower the best
recommended procedures in
determining the appropriate lenders
and their respective lending for the
investor’s property to be financed.
An Investor’s Guide to Investing
Retirement Funds in Real Estate
By Mark Robbins, J.D., CEO
With this type of loan, the nonrecourse loan, the investor can obtain
leverage with a mortgage to buy one to fourunit properties.

80
The NonRecourse Loan
As mentioned in the beginning of
this article, prior to 2004 no banks
issued nonrecourse loans for the
purchase of real estate, let alone the
purchase of real estate by an IRA, as
opposed to an individual. The fact of
the matter is this: The IRS does not
permit the IRA investor to
personally guarantee a loan when the
investor is using their retirement
money, along with a mortgage, to
purchase real estate with their
retirement funds. Why is this the
case? Answer: Because these
retirement funds haven’t been taxed
by the IRS. These funds are tax
deferred, and the IRS doesn’t want
the investor commingling his
personal assets and/or personal
obligations with the property subject
to the purchase with the IRA or other
retirement funds.
Under a normal, conventional,
personallyguaranteed loan, if the
mortgagor (property owner) cannot,
or does not, meet their payment
requirements of the mortgage, the
bank can use whatever legal means
at its disposal to obtain payment
from the mortgagor. The bank can
sue the property owner and obtain
that individual’s personal assets to
satisfy the mortgage debt, if
necessary.
As a result, most banks will not
lend money to purchase real estate
through a retirementfunded account
because they cannot obtain that
personal guarantee from the
borrower. With a nonrecourse loan
the only recourse the bank has is the
property and the rental revenue that
the property generates. The bank
cannot even go after the retirement
account’s other funds or assets.
Hence, this is a protective measure
for the investor. The result of this
stringent requirement is some fairly
strict guidelines by the banks to issue
these nonrecourse loans.
NonRecourse Loan
Requirements
That brings us to the “how to” of
making an investment in property
with your IRA. The first step in this
process is to establish your IRA
account with a custodian/trust type
company that specializes in handling
retirement accounts for investments
in real estate with IRA’s, such as the
SDIRA (SelfDirected Individual
Retirement Account), or a Roth IRA,
or an IRA in an LLC, or a Solo
401K, or individual trust. This is
necessary for several reasons. Again,
the IRS does not permit the owner to
handle any financial transactions in
respect to the ownership of the property.
The custodial company must pay all
bills and receive all rents associated
with ownership of this real estate with
exceptions of a Checkbook LLC or a
Solo 401K. Nevertheless, one still
needs a custodian to make sure the
investment rules are being followed.
Once you have established an
account, the time is right to find a
property worthy of your investment.
In order to identify the right property
to invest in, there are a few important
things for you to know. First, you will
need to have enough money in your
retirement account to make a minimum
downpayment of 40% of the purchase
price. Depending upon the type of
property and the lender, you might
need to make a greater downpayment.
This is usually dictated by the lender
for the transaction.

81
Second, you need to find a property
that is either already rented or will
be easily rentable once you own it.
The property being purchased by
your retirement account must be an
investment property. It cannot be a
primary or secondary home.
The third thing you need to keep
in mind is the rent the property will
generate should be 120% of the
property’s total expenses, which
includes the mortgage payment,
taxes, insurance, any HOA dues, a
vacancy factor of 7%, and a
management fee if the investor is
going to have a property manager.
Some investors opt to manage the
property themselves, which is
usually permitted. If you find your
property is not generating enough
rent to exceed these collective
expenses by a minimum of at least
20%, then the loan will almost
always be rejected. The one thing
that can offset an imbalance in the
incomeexpense relationship is if the
borrower has plenty of reserves in
their respective retirement account.
A lender that otherwise likes the
property and the investor’s overall
financial strength will make an
exception when the debt ratio falls
below that 20% margin. So, make
sure your retirement account has
sufficient assets to cover any deficit
for a long period of time.
At the time the lender analyzes the
respective property for a loan, the
lender needs to see that the borrower
will have 15% of the loan amount in
their retirement account as reserves.
Some lenders require only six months
of mortgage payments, taxes, and
insurance. It depends on the lender
and the property’s cost. In either
case, the investor must maintain
some level of reserves. The lender
will audit the investor’s account at
year end to make sure they comply
with this requirement.
What Property Types Do
NonRecourse Lenders
Consider?
Most
nonrecourse
lenders are
very
particular
about the
types of
properties to
which
they’re
willing to
grant a
mortgage.
Generally
speaking, these lenders will consider
singlefamily homes, condominiums,
duplexes, triplexes, and fourplexes.
Most of the betterknown, non
recourse lenders do not lend on
commercial properties, although
there are a couple that will consider
multifamily properties up to 15
apartment units, and some that will
consider business properties such as
offices or industrial warehouse types.
There are only a couple of lenders
that can be depended upon for these
types of properties in general. Once
the investor seeks a commercial
property, there are other dynamics to
the loan process and the mortgage
arena that can be discussed with the
author.
When it comes to 14 unit properties,
most lenders do not want to lend on
properties that cost less than
$200,000 because they don’t want to
lend amounts less than $120,000.
Knowing that the downpayment
required for these loans is 40%
oftentimes precludes many properties
from being attractive to these lenders
to issue a mortgage. The majority of
lenders also do not like to work with
properties that were built more than
70 years ago. There are properties
known as row houses, which are
common in certain cities. Lenders
generally steer clear from lending on
these properties. Vacation rentals can
also be troublesome because they
don’t necessarily produce a steady
stream of income to ensure the
monthly debt will be covered. The
borrower needs to present a
compelling story to the lender as to
why this particular property will
maintain or exceed the debt ratio
requirements discussed above.
Lenders also require the property to
have a minimum square footage of
700 square feet or greater to issue a
nonrecourse loan.
Follow Up:
To learn more about using non
recourse loans for retirement funds’
purchases of real estate, Mark
Robbins, J.D. by phone at
(415) 3091803, or by email at:
mark@lendingresourcesgroup.

87
Gathering Seller Leads For Your Business
A
lot has changed in real estate since 1981, the
year I started my career as an agent in Silicon
Valley. Back then, agents gathered buyer and
seller leads by open houses, doorknocking,
“floor time” in the office as a receptionist, and
some direct mail. None of this was sophisticated, and all of it was
tedious. Then, Landvoice came along!
Origin of Landvoice
Landvoice began in the early 1990’s as a way to help real estate
agents quickly access For Sale by Owner (FSBO) inventory in their
area. The first FSBO lists were created by manually assembling
lists from newspaper ads and faxing them to the agents. More
cities across the country were added, and the system became more
automated, and moved to email delivery. In 2010, Landvoice was
acquired by Jake Fackrell. At that time, Landvoice was a CD
ROM, available only for a Windows computer. Mr. Fackrell
quickly moved to a cloudbased system that could run on any
Web browser. Over time, Landvoice expanded by adding
Expireds, PreForeclosures, Neighborhood Search, Call Capture,
and Old Expireds. Mr. Fackrell is still President of the company,
while Bert Compton is the CEO, managing all the daytoday
activities of the business.
Aggregating Data
Landvoice aggregates data from thousands of public sources.
Then they sort the data based on a variety of parameters, such as
geographic location, data type (FSBO, Expired, etc.), and date. The
data then goes through a system of reviews that includes both
computer systems and humans. This is why their data is superior
on the market. In many cases they also supplement additional data
such as phone numbers or email addresses, to make it more useful
to their customers. It is then delivered daily to customers through
the Landvoice app based on the customers’ subscriptions..
Giving the Land
A VOICE
By Bruce Kellogg
Image by Gordon Johnson & mcmurryjulie from Pixabay

88
Features and Benefits
Landvoice helps connect real estate agents, brokers, (and
investors!) with motivated home sellers by providing high
quality seller leads with the most contact information in the
industry. They save their customers the time and effort of
searching local listings, listing websites, county records, and
phone records to find potential clients. They do all the tedious,
laborintensive work every day so agents can wake up to new
potential clients every morning. Landvoice provides a
consistent, predictable source of sellers throughout the U.S.
and Canada. Within minutes of logging into Landvoice, a
customer can see where they should focus their efforts that
day. They know whom to contact and have multiple contact
methods at their fingertips to begin making connections.
Landvoice customers generate more than $25 million in
commissions every month. The average Landvoice customer
sees two to four new listings a month, while others add more
than 20 new listings a month. Landvoice also offers team and
broker accounts. Some teams list more than 140 properties in
a single month using Landvoice.
MEET BRUCE KELLOGG
Bruce Kellogg has been a REALTOR®
and investor in California for 44 years.
He has purchased hundreds of investment
properties for himself, mostly with high
leverage and taxdeferred exchanges. In
the process, he made three fortunes and
has experienced three realestate
downturns since 1980. He has transacted
about 550 properties for clients, creating fortunes for several. His
book, "Real Estate Investing Wisdom", is being published. He can
be reached at Brucekellogg10@gmail.com or (408) 4890131.
Getting Involved
Visit the website www.landvoice.com to learn more. Or call
8886780905 to speak directly with a Landvoice success coach.
They will look up a specific area, and let agents know where to
focus their time, and can customize a subscription to best meet the
needs and goals of each agent, team, investor, or brokerage. The
success coaches have access to special, unpublished discounts to
help agents list more properties.
Image by Gerd Altmann from Pixabay

93
By LLoyd Segal, President of the
Los Angeles County Real Estate Investors Association
A
ctually there are
several exit strategies
available to you that
would avoid
completing
renovations. For example, you could flip
the property “as is” without performing
any repairs or renovations whatsoever.
Or, you could complete only the repairs
that are absolutely necessary and then sell
the property. Or, finally, you could
completely rehab the house and then flip
it. Let’s explore each of these strategies
separately.
1. Wholesaling
If you enjoy the hunt for properties
and are good at negotiating deals, you
can make money without doing any
repairs or renovations at all. Using this
exit strategy, you simply track down a
property, put it under contract, and then
turn around and sell the contract
(“assign”) to another investor for a
profit. Once you establish yourself as a
having contracts to flip, you'll have a
ready source of flippers eager in taking
wholesale properties off your hands.
And, you’ll spend very little, if any, of
your own cash!
The process of finding properties and
quickly reselling them to other flippers is
called “wholesaling.” The advantages of
wholesaling are simple: 1) You don't have
to spend time and money performing
rehabbing the property; 2) you’ll make
money finding great deals for other
flippers. The only disadvantages are that:
1) you won't make as much money on each
deal; and 2) you could find yourself
owning a house that you can't find a flipper
to buy.
If you enjoy the hunt for properties and are good at negotiating
deals, you can make money without doing any repairs or
renovations at all.
Yes, You Can Sell A Property
Without Completing
Renovations
Image by Darkmoon_Art from Pixabay

94
2. Repairs Only
In the alternative, you could make
only the repairs that are absolutely
necessary. But then, before you begin
renovating the house, you could flip it to
another investor. For example, you find
a property in desperate need of cosmetic
repairs: paint, carpet, and landscaping. It
could also benefit from major
renovations, but you don’t have the
funds. It's the smallest house in the
neighborhood, and if you built an
addition (i.e. another bedroom and
bathroom) you could bring its value in
line with the other houses and make a
handsome profit when you flip it. The
problem is that you only have $15,000 to
spend, and you need to flip the house
quickly before the holding costs
overwhelm you.
In this situation, your best exit
strategy might be to invest $10,000 in
carpet, paint, and basic landscaping,
saving $5,000 for holding costs (or
contingencies). Then, when you show
the house to an investor, he will see the
potential in the property and pay you a
premium as a result. In this way, you
may be able to double or even triple your
$10,000 repair investment.
These investors don't have time to
find properties, evaluate opportunities,
negotiate deals, or rehab properties but
you do, so take advantage of it!
3. Partial Rehab
When doing a quick “downanddirty”
rehab on a property, you’re not transforming
it into a showcase home to sell to
consumers. Instead, your goal should be
to transform the home into a clean
investment property that would appeal
to other investors. This means only
replacing old or damaged carpet,
painting the interior with neutral colors,
thoroughly cleaning the entire house,
sprucingup the landscaping, and
replacing light fixtures.
Flipping before all of the renovations
are completed may reduce your profits,
but it will also save you time and keep
your investment costs low. In fact, if you
have little cash to invest, this might be
your only strategy to profit on the deal.
Later, when you've builtup your
investment funds, you will have more
exit strategies to choose from.
At this point, you may be asking
yourself, where do I find these investors?
You can find investors by placing
classified ads in your local newspaper.
You can also find them by attending local
real estate investment clubs. There is no
shortage of investors looking to buy
investment properties. Often these people
don't know how to find deals or aren't
willing to do the work necessary to find
them. Some are parttime investors who
hold fulltime jobs. Others are brand
new. They have cash to invest and
resources to rehab a property. Some want
to flip the property, while others are
looking for longterm rental properties.
Regardless, these investors don't have
time to find properties, evaluate
opportunities, negotiate deals, or rehab
properties. But you do, so take advantage
of it!
The good news for you is that there are
always investors looking to buy
properties before, during, and after
renovations.
These investors don't have time to find
properties, evaluate opportunities,
negotiate deals, or rehab properties but
you do, so take advantage of it!
Image by Maite Blümer from Pixabay
Image by Sabine Dirksen from Pixabay

98
H
ow would you feel if
you had to watch as
your hardearned
wealth goes up in
flames because you
failed to make sure that your finances
were in order?
The word "horrible" comes to mind.
Statistics show that about 49% of
small businesses will not be able to
survive for five years or more. So, if this
is a fate that you want to avoid as a real
estate investor, your bookkeeping must
be in order.
And while you have the option of
hiring a bookkeeper to sort out your
business finances, you still need to take
an active role in managing them. You
could start by identifying the common
mistakes small businesses make and do
everything you can to avoid or rectify
them.
So, what are these mistakes? And
how should you go about addressing
them?
1. Using a Personal Account
for Business Transactions
A personal bank account is for
personal financial transactions. This is
the account that allows you to pay your
personal expenses and keep your savings.
But many small business owners, which
include those in the real estate, tend to
use personal bank accounts for business
transactions.
This is a big nono.
At no point in time should you do
such a thing. How are you going to trace
what is coming in from your business?
And how will you be able to separate
your personal and business transactions?
Mixing things up in this manner is a
recipe for trouble. Sooner or later, the
IRS may require you to account for all
monies coming into your real estate
business, and you will be unable to meet
their requirements – at least not without
some expensive accounting help.
If you are currently running your
business and personal life from one bank
account, you need to do something to
change that. Opening a business account
takes a short time but will save you a lot
of grief in the long term.
2. PayingFor Business Transactions
Using Personal Debit and
Credit Cards
Are you one of those real estate investors
that use your personal debt and credit
cards to pay for business transactions?
You need to stop.
Doing this is just as bad as using a
personal bank account to run your
business operations. It’s going to be very
difficult for you to keep track of your
personal and business expenditures. You
will need to spend more time and effort to
find out what belongs where, which you
may not be able to do.
So, what should you do?
Are you one of those
real estate investors
that use your
personal debt and
credit cards to pay for
business
transactions?
7 Bookkeeping Mistakes
That Real Estate Business Owners Make
and How to Avoid Them
By Leon McKenzie
Image by Michal Jarmoluk from Pixabay

99
It’s really simple: get separate debit
and credit cards for your businesses. And
if you are not in a position to do so, then
dedicate one debit or credit card to
business transactions for easy
accounting. Doing so helps you build
creditworthiness not just on a personal
level, but on a business level as well.
3. Poor Record Keeping
Are you one of those people who
assume that when the time comes to do
your taxes you will remember it all?
How is that working out for you?
Poor record keeping is a serious issue
for some real estate investors. You may
fail to keep receipts of the building or
renovation materials that you use. You
may also fail to keep a record of your
debts or payments to freelance
professionals that you hire. Categorizing
employees or expenses wrongly may
also be an issue. Regardless of what the
problem is, poor record keeping will
come back to haunt you in the very near
future – when the taxes come calling.
The first thing to do is write down
everything you spend in the way of
business transactions. Use a business
credit or debit card to pay off your
expenses because it makes everything
much easier to track. Be sure to ask for a
receipt always. Then make sure that you
have categorized your business
transactions and employeerelated expenses
correctly. In addition, keep a very close
eye on what is coming in and going out
of your business accounts. Be sure to
keep a record of your business activities
going back a few years, just in case.
It may seem like a nuisance to keep
good records, but when you need to
account for your money to IRS or
potential business buyers, you will thank
yourself for doing so. Not only will you
be able to stay out of trouble, but you
will also be able to stay on top of
reimbursable expenses that will help
keep more money in your pocket.
4. Not Reconciling Your Bank
And Credit Accounts
If you have a good record of your
business transactions but do not reconcile
your bank and credit accounts, then there
is no difference between you and hoarders
who buys things that they do not use.
What’s the point?
Those receipts and statements you
keep should be used to reconcile your
credit and bank accounts. It is the only
way for you to get a clear picture of your
real estate business in terms of what you
owe and how much you really own as
equity and cash.
So take time every week or month to
balance the books. Don’t procrastinate
until it is too late to save your business.
5. Setting Little Money Aside
For Taxes And Other Bills
Are you setting very little money for taxes?
That’s probably the reason you get
penalized often.
How about a steady cash flow: Are
you always short of cash to run your
business?
If you run a real estate business, then
you are selfemployed. That means that
you are responsible for setting aside
enough money aside to pay your taxes
and any other financial emergencies that
crop up. We are talking about Social
Security, Medicare, and retirement
savings for the future.
Your poor cash flow, on the other
hand, could be attributed to poor
accounting or the fact that you are
overextending yourself financially. If you
are spending most of your business
revenues on expanding your business
without keeping a financial emergency
fund for the business, then between your
regular business expenses and debts, you
will have little money for emergencies
— hence the poor cash flow.
So take stock of your finances, and
leverage debt to help you expand that
real estate business without
compromising your ability to pay taxes
or keep the business in operation.
Cash is still king!
Photo by Andrea Piacquadio from Pexels

100
6. Not Backing Up Data
After all the effort you have gone into
to digitize your business and learn how
everything works, you are currently
sitting tight and have no care in the
world.
This is a dangerous mindset to have.
Digitization of business data makes
taking care of your real estate
investments much easier. But what
happens when your systems are hacked
or your servers fail?
You will need to resort to your
backups, of course.
So, the question is: do you back up
data? How often do you do it?
What are you waiting for?
You need to back up your data digitally
and manually. You can back up your real
estate business data in the cloud or a
second business server. You should also
keep your paper records as a backup just
in case your entire digital system fails
completely.
You can set up your digital system to
back up data automatically after a set
period. That, in addition to keeping a
paper record of your business
transactions, will be helpful should your
business ever need an audit or should
your systems fail.
7. Trying
To Do It
All
Nobody
understands your
real estate
business better
than you do. You
have put blood,
sweat, and tears
into running it
and making it a
success. For that
reason, you are having a hard time ceding
the control of your business to someone
else. So you try to do it all. And you are
failing — miserably.
“Pride comes before a fall.” How
often have you heard that statement?
Is it more important for you to be in
control or to be successful? ]
Well then, it is time for you to try to
keep up with every aspect of your
business. While it is wise for you to keep
up with your business finances, it does not
hurt to hire a bookkeeper to help you out.
Not everyone has a head for numbers, and
it is okay to hire those that do.
And when you do hire a bookkeeper
to help you with your business finances,
supervise but do not micromanage. Take
the time to discuss what you want that
professional to do, and then provide him
or her with the chance to do the assigned
job properly.
Business bookkeeping is part and
parcel of running a real estate business. In
order for you to make money, what comes
in must be more than what goes out. And
in order to make good profits, you have to
understand what goes on in your business,
right? So, it all comes a full circle. What
this implies is that you must know what
goes on in your business on the financial
front. Be sure to hire a professional
bookkeeper to help you out if you cannot
manage your business finances. But even
as you do, make work easier on yourself
by avoiding the common bookkeeping
mistakes that business owners tend to
make. It will make your business
operations much more efficient and
profitable.
Image by Photo Mix from Pixabay
MEET LEON MCKENZIE
CoFounder of US Probate Leads
Leon McKenzie cofounded US Probate
Leads more than 15 years ago. Leon’s
team processes probate data from
counties across the country and makes it
available to individual subscribers. For
more information, visit:
www.usprobateleads.com

110
Follow Jeremy Rubin on Social Media @TheFriendlyFlipper

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