Download to read offline
![74
HANG IN THERE!
up until 2018, the rate
differential shrunk to about
3.5%. This yield compression
was primarily due to the
typical economics of supply
and demand. There was too
much of a supply of money
pouring into California by
investors, as these investors
saw that real estate in
California had not only
stabilized [since The Great
Recession], but had
increased substantially,
lowering the perceived risks
of making private loans.
The default risk of making
fairly conservative loans [less
than 70% LTV of purchase]
was minimized even further
by an increasing real estate
market. By the time the loan
was eventually paid off due to
refinance or sale of the
underlying property, the LTV
had gone down to as much as
4050%. This was especially
true in the fix and flip market
for seasoned borrowers with
good track records. Although
real estate prices seem to
have cooled off from the
frenzy of buyers [especially
those who continually paid
he Prime
Rate has
been slowly
increasing
over the past
six months,
but real estate financing in
the alternative sector in
California has actually
decreased. Why?
Competition between private
lending companies in real
estate [also known as hard
money lenders] has
increased over the past five
years. This has led to
brokers shopping around on
behalf of their borrowers to
get the lowest rates and
points. Too many lenders
have had a tremendous
influx of capital from the
private sector [investors]
because of the low rates that
banks pay on deposits as
well as the volatility in the
stock market that has
spooked investors.
Prior to 2013, the difference
in rates charged by private
lenders and the Prime Rate
was about 5%. Although the
Prime Rate stayed stagnant
over asking price], many of
the larger lenders in the fix
and flip market have gone as
far as lending over 80% of
purchase and up to 100% of
the anticipated rehab. The
amazing part is that these
lenders are willing to lend
their money out to these fix
and flippers at rates as low as
7% and 1 point; this is
unprecedented. Not only are
these lenders taking more risk
than in previous markets, but
they are doing so at
extremely favorable rates.
One can only come to the
conclusion that these lenders
have a tremendous supply of
capital that needs a home;
especially those lenders who
have investors who are
promised a preferred return
[usually in a Fund vehicle]. In
these cases, idle money is a
yield drag to the Fund and
jeopardizes the payout to not
only the investors but the
profit to the manager as is
typical in a mortgage pool
Fund.
T
Yield Compression –
Why are rates in California for
alternative real estate financing
declining in a rising
interest rate market?](https://image.slidesharecdn.com/issue50-181216141012/85/REI-WEALTH-MONTHLY-Issue50-74-320.jpg)
![75
Idle money in a Fund is usually held in a low
interest bearing account at a bank awaiting
deployment. These deposits need to be liquid, as
most private lenders market themselves as
speedy – one of the advantages over a typical
bank. In addition, their private placement
memorandums dictate that idle funds be held in
an FDIC insured account; thus, the low yield on
these deposits to the Fund.
When borrowers shop around for California
lenders, they may find two to five lenders willing
to make them the loan they need at favorable
terms. Most of the time, the borrowers enlist a
mortgage broker who does the shopping for
them. Although the mortgage broker may have
favorite lenders he/she works with, the broker
also knows that many sophisticated borrowers
work with more than one broker, so it is the first
one who can get the deal done who usually wins
out. In addition, the broker realizes that some
commission is better than none. Many times, these
brokers quote lower than normal rates and points
in order to secure the deal. What once might have
been quoted as a 9.5% and 3 point deal is now
hovering around 8.75% and 1.5 points. [As pointed
out earlier, certain fix and flip lenders are charging
even less.] The lender usually charges points, so
both the broker and the lender are earning less on
each transaction because of the lowering of the
points that have to be shared between them. Most
of the interest rate is earned by the lender’s Fund,
but there is overhead that needs to be subtracted
as well as the preferred return promised to the
investors of the Fund. A 7% preferred return is not
uncommon, but, the economics appear to dictate
that a preferred return of closer to 6% may be on
the horizon.](https://image.slidesharecdn.com/issue50-181216141012/85/REI-WEALTH-MONTHLY-Issue50-75-320.jpg)
Uploaded byRealty411 Magazine for Real Estate Investors
REI WEALTH MONTHLY - Issue50
The document discusses the challenges and strategies of investing in rural real estate, emphasizing the importance of understanding local markets and leveraging relationships with local realtors and resources. It introduces the Connected Investors mobile app, which aims to enhance the capabilities of real estate investors by providing tools for networking, locating deals, and funding opportunities on the go. Various marketing techniques for motivated sellers in rural areas are also outlined, highlighting the potential profitability of this niche market.
REI WEALTH MONTHLY - Issue50
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- 5. 5 TableofContents Marketing toMotivated Sellers in Rural Communities Dealing With “Balloon” Payments 14 25 Is the Secrecy of a Land Trust Lawful? 20 31 41 46 Should You Foreclose After a Charging Order? Underwriting a Loan Transaction where the Borrower is a Family Trust Yield Compression – Why are rates in California for alternative real estate financing declining in a rising interest rate market? Free Money..… No, Really! It’s True! A Rehab Repair Estimator52 61 Making Money And Understanding Tax Lien Certificates 58 68 73 Texas Cash Cow Arrest Beware of Real Estate Fraud "T" is for "Time" 07 It’s Time To Get Connected! Connected Investors Launches New Mobile App For Real Estate Pros
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- 7. 7 By Ross Hamilton It’sTime To Get Connected! Connected Investors Launches New Mobile App For Real Estate Pros
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- 9. 9 What It Does This mobile app essentially puts everything an investor needs to do business right in their palm, car and at the control of their voice. Ross says, “Real estate investors are people on the go. They are in motion, looking for properties, speaking to others, investigating neighborhoods, travelling and living life. They needed a tool that empowered them to do business at that speed, seamlessly. We created it.” Connected Investorsin Your Pocket The app puts all of the Connected Investors tools and resources in your pocket. With it you’ll have everything you need to find it, figure it, fund it and flip it. Location, Location, Location From the second you download the app you’ll see all the investors and deals around you. Hundreds of thousands of real estate pros are connected by this app. With it you’ll be able to instantly see the flippers, wholesalers, rehabbers, landlords and lenders in your area. You can reach out and start doing deals on the spot. Since 2005, Connected Investors has been location tagging the volumes of content it has been publishing on its platforms. This information is all already populated in the app. So, you can tap into historical data, location based news and trends and be hyper knowledgeable. Wherever you are you can get alerts to new deals being posted based on your criteria too. It Moves with You Being as mobile as we are, the Connected Investors team built in all the features we need to move with us. You can set up alerts for multiple locations so that you can for example watch deals coming on live where you live, and in the emerging markets with better returns where you are most focused on investing. This freedom and the finances investors are enjoying means we like to travel a lot too, right? CI has you covered. Ross explains that as you travel to new locations your app updates so you can see local investors, professionals and deals too. So, if you are spending the weekend in Jacksonville, FL and find yourself wondering what local properties are going for, and what deal opportunities look like, all you need to do is pull out your phone. You’ll have contacts right there, and new deals popping up to choose from. All without missing a beat back home either. It’sTimeToGetConnected!
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- 11. 11 Building Your NetworkFAST > For New & Existing Members This app should prove to be a complete game changer for new investors. The capital is out there, the deals are out there and buyers are still hungry. The one thing that has held new investors back from being able to jump in is connections and a network for doing deals fast. The app gives it to you instantly. Existing members who have found they have slacked on taking advantage of all their potential connections no longer have to worry about the extra step of checking an inbox and accepting friend requests. You still have to be connected to DM someone on the system, but you can now connect with a click on a notification on your phone. Existing members can use the opportunity to catch up on the hundreds of pending connections they have and supersize their network in minutes. Successfully Bringing Real Estate Into A Mobile World If anyone can deliver a game changing mobile app for investors, Ross and his team are certainly the horse to bet on in the race. Connected Investors has a strong history of pioneering real progress in real estate investing. It is a team never willing to rest on what they succeeded with last quarter. They are always thinking about what’s next, and how they can improve things and solve the next problem for real estate investors. Recently that has included the private lender network which is handling around $3B per month in lending requests. There is the robust news and honest blog feed that helps investors spot trends and get inside tips for improving their game. Then there is the Smart Forum, which enables investors and professionals to connect online, ask questions and get real answers from their experienced peers out in the field. Pinpoint Profits, the tools that has transformed the industry with access to off market inventory data and seller contact info, has even completely blown the expectations the firm had for it out of the water. As Ross puts it, “it solves a huge problem.” If you could possible want anything else to fuel your real estate investor journey, Ross leaked the newest addition to the platform a funding portal for everything else you need to finance. It’sTime ToGetConnected!
- 12. 12 Aside from how fast you can download the new Connected Investors mobile app and connect with the other 475,000 plus members there, this new leaves only one question we all want to know how can we invest in Connected Investors and share in its success and almost certain future rise to dominating the REI space as the go to platform for finding, financing and flipping deals? Ask the team and trial the latest tools by finding them at their booth at the IMN Conference 2018. Then get out there, travel, live for real, do more deals and paid crazy well for it at the same time. That includes access to cash for: • Down payments and your ‘skin in the game’ • Rehabbing and materials •Education costs • Marketing • Flip funding • Check it out at connectedinvestors.com/loans It’s Time To Get Connected!
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- 14. 14 Marketing to Motivated Sellers inRural Communities BByy KKaatthhyy KKeennnneebbrrooookk ((TThhee MMaarrkkeettiinngg MMaaggiicc LLaaddyy))
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- 21. 21 Dealing With “Balloon” Payments mortizing ” Versus “Balloon” Notes An “amortizing” note is one where the principal amount is paid off over the term of the loan. A “balloon” note is one where the payments are not sufficient to retire the debt, and an outstanding balance is due at maturity. WhatIs The Problem? The problem arises when the borrower does not have the funds necessary to pay the “balloon” amount when it comes due. Oh, oh! So, here are some ways to deal with that! "A Refinance the Property The first recourse for an owner who wants to keep the property is to refinance either the property itself, or another property in the portfolio. This is a good approach as long as financing conditions are favorable. If conditions are not favorable, other approaches will need to be considered. Sell the Property If the owner does not care to own the property any longer, they can sell it and have the sale pay off the loan. Or, they can sell another property to pay off the loan. If conditions are not favorable for selling, again, other approaches will need to be considered. Renegotiate With the Lender This is not an ideal approach because the borrower is negotiating from an inferior position. The lender “has the upper hand” because they can always foreclose. So, the borrower should offer the lender a monetary “inducement” for an extension, either a fee, an increase in interest, or payment amount, or both. But, it gets the job done! (Unless the lender says, “No”!) Protective Note Terms The best way for a borrower to protect themselves from becoming in an uncomfortable position is to negotiate protective terms in the note in the first place. One might be called a “rollover clause” or an “extension”. Here, for example, the borrower gets a time extension, say two years, for a 2% interest rate increase. This must be written in the note as one of its terms. Another approach is to convert the note into an amortizing one when the balloon payment is due. Again, these terms need to be negotiated when the note is written and included with the other terms. In some cases, lenders do not need a cash payoff and enjoy receiving reliable note payments from a proven borrower.
- 22. 22 Bring In ACash Partner If the above approaches aren’t working, the borrower can bring in a cash partner. This basically involves selling a partial interest in the property for cash to pay off the “balloon”. An escrow is recommended with title insurance, and an attorney should draw up an agreement between the parties, who might not be familiar with eachother. Return the Property to the Lender This is the leastdesirable alternative in most cases. It involves giving up. If it’s going to be done, it needs to be done right, with an escrow, deed with a “DeedinLieuofForeclosure” recitation, title insurance, and transfer of any rents and deposits back to the lender. The lender should cancel the note, and return the original to the borrower. The lender should also record a “ Full Reconveyance” in the escrow to clear the title. File Bankruptcy This is an alternative, but a risky one. The day a bankruptcy is filed, a 30day “Automatic Stay” of all collection actions is established. After 30 days, the lender can file a “Relief from Stay” request to foreclose on the property. There is a hearing, and in the case of homeowners the bankruptcy judge will urge the parties to work something out. In the case of investors, the “sympathy factor” is usually low because investors are considered to have resources and several years to handle the “balloon”. The lender is due the money, the judge is likely to rule. (i.e., no relief!) Dealing With “Balloon” Payments
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- 25. 25 Is the Secrecy ofa Land Trust Lawful? By Randy Hughes, aka, Mr. Land Trust™
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- 31. 31 Underwriting a Loan Transaction where the Borroweris a Family Trust By Dan Harkey
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- 33. 33 A family trustusually requires three parties: •Trustor(s)– The person(s) who creates the family living trust, either revocable, or irrevocable. There may be one or more trustor(s), such as husband and wife. There are many forms of trusts, for example, a children’s remainder trust or a trust representing some group. The intent of a trust is usually to protect accumulating assets such as cash, real estate, stocks, bonds, businesses, and other valuables, from excessive taxation and perseveration of capital. The purpose of a trust may also include an attempt to protect assets from certain liens or creditors during life or upon death of the trustor. Although the trustor(s) conveys title into the trust, the trustor(s) will usually reserve some or all the benefits of owning the property placed in the trust during his/her/their life. The added purpose is to preserve some of the benefits for future beneficiaries. •Trustee(s) The person who is authorized by the trust document to perform certain acts and sign the loan documentation for the trust. There may be one or more trustee(s). For, example husband and wife becoming trustees. This person(s) is/are considered the trust manager(s) with rights and obligations that are stated in the trust document. The trust document contains delegated rights, responsibilities and establishes who possess authority to act. •Beneficiaries Are those whom the trustor designates to receive some future benefits of the trust assets as defined in the trust document. There may be one or more beneficiaries. The benefits are usually based upon the investment performance of the trust assets, and the distributions resulting from the trust, now and sometime in the future. Beneficiaries may be the children, relatives, or some designated organization, such as a religious group, foundation, education entity, or benevolent group, such as The American Cancer Society, or The Make A Wish Foundation.
- 34. 34 A Trust DeedDocument contains 3 Parties: A deed of trust is a security instrument that a borrower will sign and record which will reflect a lien on a subject property. Terminology in deed of trust has similar words, but entirely different meaning or definitions. A totally different conversation as a matter of understanding the process is that there is a trustor, trustee, and beneficiary in the language of a deed of trust. Consider that a property owner who desired to obtain a loan and encumber real property. Consider that they take title as an individual(s), not a family trust. We can use husband and wife, as joint tenant with right of survivorship. •Trustor(s) – Is the person(s) or entity who owns the property. The trustor is sometimes referred to as the grantor. The owner/trustor/grantor decides to borrow money and use the property as collateral for a loan. An encumbrance called a deed of trust will be drawn, signed and recorded against the property at the county recorder’s office. A deed of trust is also referred to as a security instrument. Public records will then reflect notice of that lien. •Trustee (s) – A deed of trust requires a third party entity, generally a title company, to hold what is referred to as a bare equitable title on behalf of the or investors beneficiaries, in the loan transaction. The trustee is given three powers; 1) to foreclose 2) to reconvey and 3) to modify the trust deed per agreement. The trustee cannot benefit from the ownership but is hired only as a place holder in states that use trust deeds as recordable security instrument. The trustee is an intermediary that has a fiduciary responsibility to the stated beneficiaries. His/her job is to protect the beneficiary’s rights, and in the event of default, act in their best interest. Also, when a borrower/trustor pays off the loan, the trustee will reconvey, meaning remove the lien from public records, and return full ownership back to the borrower/trustor. Some states use a security instrument called a mortgage, rather than a deed of trust. A mortgage document only requires 2 parties. One is the borrower/trustor, and the other is the lender/beneficiary. There is no trustee required. •Beneficiaries – Are the investor/lenders/bankers who invest capital and receive a recorded deed of trust or mortgage document and promissory note signed by the borrower/trustor to hold as collateral for the consideration of the loan. Underwriting a Loan Transaction where the Borrower is a Family Trust
- 35. 35 One family trust who owns the property may decide to borrow money using their property as collateral. Another unrelated family trust may decide to become an investor/lender and use their capital to lend out to the property owner. The investor/ lender family trust will become the beneficiary of the deed of trust. If the beneficiary of the trust deed also demanded to become the trustee under the deed of trust, would the person sign as an individual, or would the person sign as trustee on behalf of the family trust? I would personally discourage this because this may alter the servicing relationship between the parties. The trustee of the deed of trust and the trustee of the family trust would have to sign the servicing agreement or an addendum wherein trustee under the deed of trust will take no actions that will alter the terms of the servicing agreement. The complexity here is not worth the bother. In a court of law, either of the above parties will claim that they did not understand the ramifications. The tightrope action should only be undertaken with the advice of their counsel and paid for by them. The only practical solution is to have the title company who issued the policy of title insurance for the closed loan transaction to become the trustee under the deed of trust. I chose to deviate of explaining the differences between the parties, property owners, and the lenders in a different context, but the underwriter must be aware of the separateness and the ramifications of dealing with each. All the following conversation relates to the property owner as a family trust. Loan Origination –Loan Application Process The application package sent to the borrower/trustor/trustee will contain forms related to an individual or an entity depending upon whether the loan is for consumer purpose, or for business purpose. In most cases the individual(s) who create the trust is both the trustor and the trustee of the family trust. Your underwriting is almost like a hybrid of the two.
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- 37. 37 UnderwritingaLoanTransactionwheretheBorrowerisaFamilyTrust Original Trust documentand all related Amendments 1. There are differing views on whether the complete trust should be obtained and read as part of the loan approval decision, or whether the statutorily authorized Certificate of Trust (discussed below) should be the sole source of information. My view is that the entire trust should be read to determine who are the trustors, trustees and beneficiaries. This gives the lender the contact information for all parties. If the trustor/trustee dies, then the lender can contact the beneficiaries, to continue. 2. Does the trust give authority for one or more trustees to borrow, submit information on behalf of and sign the related documents encumbering the subject property? The purpose in reading the trust document, and especially the amendments, is that the trustor, trustee, and/or beneficiary might have changed. The powers may have changed, and successor trustees may have replaced deceased trustees. 3. Title Page, Trustee Identification Page, Signature Page, Powers Page, Any Amendments Thereto. Some Lenders will only request these three pages. This is suggested by some as incomplete. 4. Trust certification (Probate Code section 18100.5) A trust certification may be prepared by the lender, the trustee or an independent source such as a title company and can be recorded. It certifies who are the trustor, trustee, and beneficiaries. It establishes the authority to borrow and encumber, provide information and sign loan documents. As part of Probate Code section 18100.5, the certification provides protection for lenders who rely on the information it contains. However, a lender cannot rely on the trust certification if the lender has actual knowledge that the matters set forth in the certification are incorrect. Therefore, some lenders believe it is best to not even get a copy of the trust itself. However, the statute itself provides that simple possession of the entire trust document itself without more is not enough to prove that the lender has “actual knowledge”.
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- 42. 42 T he charging order is a key to LLC asset protection. If you are sued in a car wreck and the victim wants to get at your assets, the charging order (n many states, including Wyoming and Nevada) is the victim’s only relief. It provides for a lien on distributions, meaning the victim can only get what is distributed to you from the LLC. But in some states (including California and Utah), if not enough money is forthcoming to pay off the claim, the victim can foreclose on your LLC interest. To do so, they go back to court and argue that the charging order is not enough. They aren’t satisfied with distributions. They want the LLC interest itself. IS IT AGOOD IDEA TO FORECLOSE ON AN LLC INTEREST? If a judgment creditor (the car wreck victim) successfully forecloses upon the LLC membership interest of a judgment debtor, then the judgment creditor acquires a permanent (as opposed to a temporary) right to receive all distributions made by the LLC to the judgment debtor, including any liquidating distributions when the LLC is dissolved. In other words, prior to foreclosure, the judgment creditor has only a temporary right to receive distributions until the judgment is satisfied. After a foreclosure, however, the judgment creditor has a permanent right to receive all distributions irrespective of whether the judgment is satisfied. With a single member (one owner) LLC, this may be a suitable outcome. You get it all. But in a multiple owner LLC, you should definitely think twice about foreclosing. Consider that: 1. There are cogent tax reasons why a judgment creditor should not foreclose upon the membership interest of an LLC member. If a judgment creditor only has a charging order against the membership interest of an LLC member, then for tax purposes, the judgment
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- 46. 46 By Reggie Brooks Free Money..… No,Really! It’s True!
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- 50. 50 Requesting Your Grant When you’re ready to request your grant you’ll need to do so using two documents. One is a Grant Proposal, and the other is the Letter of Appeal. The difference between the two documents is that the Letter of Appeal is a summary of the Grant Proposal. If you’re requesting a grant of $2,500 or less, you can usually accomplish that by using the Letter of Appeal only. If you’re looking for more, you’ll have to use the Grant Proposal and the Letter of Appeal. When you find the right funding source for your project, this is when you write your proposal and your appeal letters. Submit your proposal to as many funding sources as you can find. There are not many restrictions on the number of grants that Reggie Brooks Reggie Brooks, is an international speaker, author and educator, dedicated to inspiring others to achieve personal success through real estate investment. He is also the #1 Vacant, Abandoned & Distressed Property Specialist in North America. Having risen above a life of poverty, he has achieved what many people consider to be impossible. He went from making $36,000 per year at the local telephone company, to making over $40,000 per month in his real estate business. Today, Reggie delivers his personal philosophies for success at major business venues and expositions throughout the United States. Reggie attributes his success to faith, dedicationto success, and to the invaluable coaches he has had along the way. you can receive. Why not get five grants instead of one? Why not ten grants instead of five. Get the picture? Remember, You AreEntitled To This Money! As I mentioned before, these are your tax dollars at work. Do not feel guilty! It’s your money in the first place! Uncle Sam is a very generous partner who wants to keep America strong. He does this by making funds available to be used for specific purposes. Some of those “purposes” that Uncle Sam allocates billions of dollars for are in the area of real estate, small businesses, and education. I challenge you to learn about the programs that are available for you and take advantage of them. They are there for you to use, but only if you’re willing to learn how to use them. Have a grand – Grant Adventure!
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- 53. 53 I ntroduction To Real EstateMatters This is an initial article in a new series called, “Gary’s Real Estate Matters” from Gary Massari, CEO of REI Fortunes and Bruce Kellogg, Real Estate Consultant. In this article you will learn the importance of estimating repair and renovation improvements and how you can benefit financially! Use With Contractors When working with contractors, you can save money several ways; first, buy your own materials and only hire the contractor for labor. This will save you 20% on materials that contractors mark up. Secondly, if you are a veteran, Home Depot will give you a 10% discount. If not, then find a friend who is a veteran to make your material purchases for you. We are going to show you a template we use so you can see how it works, especially with contractors and subcontractors for each area of rehab. It is important for the bidding to be uniform so that careful comparisons among bids can be made. If a bidder departs from the estimator, there must be discussion to reconcile any differences. Otherwise, you are comparing apples and oranges, as the saying goes. Building Your Own Estimator There are a lot of cost estimators you can get for free by searching Google, but designing your own to meet your specific needs is far better and more accurate. When designing your estimator using an Excel spreadsheet, there are four summary parts you want to include to the estimator: 1. Exterior 2. Interior 3. Mechanics 4. Other
- 54. 54 Exterior will look something like this... Notice that the UNIT SF works together with the COST (unit price) to calculate the total cost, as in this case for a new roof. You can easily contact a roofing contractor in your area to get a square foot cost to replace a roof. Here are thecategories for the Exterior: 1. Roof 2. Gutters 3. Finish 4. Masonry 5. Painting 6. Windows 7. Garage 8. Landscaping 9. Concrete/Asphalt 10. Decks 11. Fence 12. Pool 13. Septic Here are the categories for the Interior: 1. Painting 2. Hardwood 3. Carpet/Vinyl 4. Kitchen cabinets, flooring, counter tops, electrical & plumbing 5. Appliances 6. Bathroom 7. Framing 8. Insulation 9. Walls 10. Doors & Trim 11. Basement 12. Foundation Mechanical 1. HVAC 2. Plumbing 3. Electrical Other • Demo & Dumpsters • Termites/Mold • Permits AA RReehhaabb RReeppaaiirr EEssttiimmaattoorr
- 55. 55 Concluding Remarks 1) The unit cost in our example is based on the San Francisco Bay area. They will need to be revised for areas that have substantially different cost structures. Input from local contractors submitting bids should make this possible. 2)In many markets around the country, sale prices are now declining. Therefore, it is critically important that rehab costs be estimated accurately, and an extra margin be added for safety. 3) Put a Yes/No column, and that way you can walk through a home in minutes and mark Y or N based on your observations. When you leave you can then calculate the cost. 4) Make sure you add a 10% to 20% contingency to the total project to cover unknowns. Some hard money lenders will only allow 5% overall contingency, so in that case pad your line items to include a sufficient contingency. 5) When doing major renovations, it is wise to get SKU numbers for your kitchens, bathrooms and mechanical items. 6) The best use of a detailed cost estimate is to assure that you have covered your bases to have a profitable project, and to convince your investor as a wholesaler of your accuracy and credibility. 7) Your cost estimator will also come in handy when you negotiate your final offer on a discounted property to assure profitability. Let Gary and Bruce know if this article helped you, and write us to request other topics. You can always reach either of us by calling us or emailing us… Gary Massari, CEO REI Fortunes, https://reifortunes.com 9254511619 gary@reifortunes.com Bruce Kellogg, Real Estate Consultant, brucekellogg10@gmail.com (408) 4890131
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- 61. 61 Texas Cash CowArrest -- Beware of Real Estate Fraud By Kathy Fettke
- 62. 62 T he arrest of a Texas developer, who’s wellknown in the real estate industry, is a big reminder to thoroughly vet the people and deals you are working with. Phillip Carter of Frisco is accused of taking $17.5 million dollars from investors for development projects in North Texas but authorities say he used much of that money for his own personal needs. His wife, Shelley, and alleged accomplice, Richard Tilford, also face charges. The Texas State Securities Board lists almost a hundred victims, many of whom are reportedly elderly and probably trying to boost their retirement portfolio. Now they face financial loss, and are likely wondering where they went wrong. Who is PhillipCarter? Carter is the owner of Texas Cash Cow Investments, Inc., although the website for that company no longer exists. He’s also the owner of North 40 Developments, LLC, which does have a website. It doesn’t mention Carter’s name anywhere, however, but it is located in Frisco. According to Texas authorities, Carter and Tilford told investors their money would be used for the development of commercial and residential properties. The indictment says Carter used at least some of those funds for unrelated purposes, including personal expenses and the payment of an IRS tax lien. It also says that Carter lied about his personal background that he falsely claimed to have a chemical engineering degree from the University of Virginia and had worked as a project manager for Texas Instruments. It also says he made up the story about working and traveling with “Rich Dad, Poor Dad” author Robert Kiyosaki. Trouble Begin in Early 2016 The indictment lists the names of all the people who invested with Carter in early 2016. Some contributed as little as $12,000 while others gave Carter as much as $700,000. It says that Carter held the money as a fiduciary for the purpose of funding investment opportunities that would result in a profit for investors. Instead, Carter is accused of using the money for personal reasons that have now put those funds at “substantial risk.”
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- 68. 68 MMaakkiinngg MMoonneeyy BByy TTeeddTThhoommaass aanndd UUnnddeerrssttaannddiinngg TTaaxx LLiieenn CCeerrttiiffiiccaatteess
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- 73. 73 Yield Compression By EdwardBrown – Why are rates in California for alternative real estate financing declining in a rising interest rate market?
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