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Realt y 411Print • Online • Network

www.realty411guide.com Vol. 5 • No. 3 • 2015 | A Resource Guide for Investors

Investor & AuthorLORI GREYMONTEnjoys Country Living in Tech Silicon Valley

DO MORE DEALS NOW!Find the Funds Insidewith PRIVATE MONEY411

Rise to the Top ofTHE REI WORLDMeet Industry Leaders

WEALTH Tips & Techniques + 411 News & UPDATES

cont

ents

pg. 31

pg. 55

pg. 14

pg. 20

Realty411Guide.com PAGE 3 • 2015 reWEALTHmag.com

The Team from Growth Equity

Group: Preston Despenas (top) and

Brett Immel (left)

Photo right: Pat James with United StatesTax Relief

Randy Reiff, CEO of FirstKey

Lending, LLC, is our cover feature for

Private Money411

13 Publisher’s Note: Meet Us in Your City

14 Tax-Saving Strategies with Patrick James

18 Kathy Fettke Discusses Flipping

20 Growth Equity Group Offers Cash Flow

22 12 Rounds with Black Belt Investors

24 Notes: Turn Distress into Success

25 Win with Probate Real Estate

26 Lori Greymont Designs Her Perfect Life

31 Private Money411 with Randy Reiff

36 An Interview with Tim Herriage of B2R

38 Networking for Real Estate Investors

40 FirstKey Lending Continues to Innovate

44 Is Owning the Best Income Source?

46 Applied Business Software Expands

51 A Lesson in Real Estate Syndications

53 Is Having a Cat More Work than an IRA?

55 Luxury Rides for Realty Professionals

58 Special: What’s Wealth Without Health?

61 Investor Resources & Special Offers

64 Advantages of Solar Energy

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BLACK BELT INVESTORSEducation • Coaching • Property Management • Nationwide Investments

Real Estate Education for Investors• KickStart 101 – How to Create Cash and Wealth Through Real Estate • Wholesaling – Flipping Houses for Quick Cash• Master’s Program In the Field Wholesale Training • Rehabbing – Making Huge Profits • Purchase Options – The Best Creative Financing Strategies• Joint Venture – Developing Strategic Alliances• Business Training – Quick Start Entrepreneurs • Real Estate Investor Club – Monthly Meetings to Stay Engaged

NATIONWIDE TURN-KEY REAL ESTATE INVESTMENTS Cash Flow + Appreciation + Tax Benefits = Wealth Builder

• Cleveland, OH Starting in the Low $40’s Cap Rate 15% Strategy: Heavy Cash Flow & Appreciation • Indianapolis, IN Starting in the Mid $60’s Cap Rate 8% - 9% Strategy: Cash Flow & Appreciation

• Kansas City, MO Starting in the Mid $60’s Cap Rate 8% - 9% Strategy: Cash Flow & Appreciation

• Phoenix, AZ Starting in the Upper $70’s Cap Rate 3% - 5% Strategy: Appreciation

• Southern CA Starting in the Mid $100’s Cap Rate 3% - 5% Strategy: Appreciation

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Realty411 / reWealth magazine is proudly published from Santa Barbara County, Calif. ©Copyright 2015. All Rights Reserved. Reproduction without permission is strictly pro-hibited. The opinions expressed by writers/columnists are not endorsed by the publishers. IMPORTANT DISCLOSURE: Publishers and staff are not responsible for performing due dil-igence on the opportunities offered by magazine advertisers and expo sponsors. Before investing in real estate seek the advise of your trusted financial advisor, attorney or tax consultant. BEWARE: Real estate investing is risky and may result in loss of capital.

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Thanks for joining me once again on another adventure towards success

in real estate, business and life. It is said that the only thing that remains constant is change. But change can create unwanted stress. It certainly can be a nail-biting time trying to maneuver around obstacles in our path. One thing that remains steadfast in this chaotic world is our commitment to serving our community with key information about real estate investing. I feel it’s important to pair our print issues with networking events because I know real estate is a relationship-based business. Building in-person connec-tions can quickly uplift us to new heights. Many of our expo guests, magazine subscribers, and social media fans have met individuals at our events that have catapulted them to new levels of success. On a personal level, I know the knowledge I’ve absorbed at many events, not just the ones we host, has greatly enhanced my life. The fact is: I can’t help but improve my life when I’m surrounded by such great real estate investors and industry leaders! Sharing the day with individuals who strive for success in all aspects of life is electrifying. The smiles that greet me are so special and fuels my energy to meet even more of our readers in person.

As a matter of fact, last year we reached more people than any other com-pany in our niche. We have hosted events in spectacular cities, such as: Indianapolis, San Diego, Los Angeles, San Jose, Santa Barbara, Pismo Beach, San Francis-co, Seattle, Phoenix, Las Vegas, McAllen, Texas; plus Manhattan and Long Island, N.Y.

It’s truly an honor for me to meet our readers across the country and to experi-ence all the cultural nuances of our diverse nation. From the East Coast dialects I overhear as I stroll down Midtown Manhattan, to the Mandarin alphabet characters I admire in San Francisco’s Chinatown.

My work in the industry continues to fascinate and lead me to new places and levels in life.

Thank you for being a part of my journey. Enjoy our new edition and please let me know if we can assist you in any way.

Linda Pliagas, PublisherPhoto: John DeCindis

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If the IRS audits a real estate investor, one of the first things they look for is whether the investor is a dealer or a real estate professional. Most dealers are subject to passive activity loss rules that limit the

amount of losses from negative – cashflow real estate. If however, the IRS designates you as a real estate pro-fessional, you get to write off unlimited losses against income!

RENTAL LOSSES FOR DEALERSHere’s the basic rule about rental losses you need to know: Rental losses are always classified as “passive losses” for tax purposes. This greatly limits your ability to deduct them because passive losses can only be used to offset passive income. They can’t be deducted from income you earn from a job or investments such as stock or savings accounts. Passive income is the income you earn from rental real estate or other passive activities. An activity other than real estate is considered passive if you don’t “mate-rially participate” in it – that is, work at it for a minimum number of hours each year – usually 750 hours. Passive income does not include income from a job, a business you actively manage, or investment income. Thus, for example, you’d have passive income if you earn a profit from one or more rentals. Without passive income, your rental losses become suspended losses you can’t deduct until you have suffi-cient passive income in a future year or sell the property to an unrelated party. You may not be able to deduct

Dealer VS Real Estate Professional Deductions

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s

such losses for many years. In short, your rental losses will be useless without offsetting passive income.

EXCEPTIONS TO PASSIVE LOSS RULESThere are only two exceptions to the passive loss (“PAL”) rules:• You or your spouse qualify as a real estate professional, or• Your income is small enough that you can use the $25,000 annual rental loss allowance.• Property owners with modified adjusted gross incomes of $100,000 or less may deduct up to $25,000 in rental real estate losses per year if they “actively participate” in the rental activ-ity. You actively participate if you are involved in meaningful management decisions regarding the rental property and have more than a 10% ownership interest in the property. This allowance is phased out for taxpayers whose MAGI exceeds $100,000 and eliminated entirely when it exceeds $150,000. Thus, it is useless for high-income landlords. So what does the IRS look for to determine if you are a real estate dealer or real estate professional? It all depends on how you spend your time.

TO BE A REAL ESTATE PROFESSIONALTo be a real estate professional, you need spend at least 750 hours each year actively working in your real estate business – AND you must pass what the IRS calls the “half-personal services test.” This means you must spend MORE than 50% of your working time in your real estate business. Per the IRS, “If the taxpayer has a full-time job working 2,080 hours a year in a non-real property business, he must work 2,081 on his real property businesses to meet half-per-sonal services test.” The 750 hour test must be met by one spouse alone so don’t say, “My wife and I both work the real estate business, and between the two of us, we put over a thousand hours into the real estate business.” – you will loose. The IRS is very

Continued on pg. 16

By Patrick James,United States Tax Relief

Steve Bighaus has over 24 years experience in the mortgage industry. He maintains a focus on servicing the real-estate investor by offering aggressive financing options and resources for buyers interested in purchasing or refinancing their investment property. By concentrating on investment properties and the financing that comes with them, Steve is recognized nationally as an industry expert. The knowledge that he has enables him to find financing for people even when they have had difficulty elsewhere.

This is not a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant. Security National Mortgage Co. is an Equal Opportunity Lender.

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Tax Deductions, pg. 14

specific: You combine your income on a joint tax return. But you cannot combine your hours to claim status as a real estate professional on your individual/couple income tax return.

NOTE: The IRS trains its agents to ask about who actually manages the prop-erty. They are also trained to reality-check what you tell them against your Schedule E. If you are claiming you are actively involved in every aspect of your property – but simultaneously claim a lot of management fees on your tax return via Schedule E, and deduct them from rental income, that gives the IRS ammunition to shoot down your deduc-tions.

RED FLAGSHere are some Red Flags IRS auditors look for:• Do you have an operating agreement for your LLC? In an audit, the auditor WILL ask to see them.• Did you document a shareholders’ meeting this year for your corporation? Are there minutes prepared?• Did you group all your real estate investments together

as a single activity? Be prepared to produce other years’ returns showing the same election. The IRS expects con-sistency. The election is binding on future years.• If you are a limited partner in a partnership, you can’t claim the $25,000 special allowance. The same applies if you have less than 10 percent interest in

ownership.• If you try to deduct real estate

losses over $25,000 and you’re not a real estate profession-al, expect the IRS to scrutinize you.• Did you deduct rental losses while showing an AGI of greater than $150,000?

BECOME AUDIT PROOFHere is one final suggestion: Never go into an IRS audit by yourself. IRS agents are trained to ask trick questions and to trap you into saying things.

For a FREE BOOK on how to capture all the tax deduc-tions you are entitled to and stay audit proof, go to http://UnitedStatesTaxRelief.com for a FREE download.

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to the 2nd Annual Texas Real Estate Investors Expo, Saturday, May 30, 2015 at the Omini Hotel (Colonnade) in San Antonio, TexasOUR PROMINENT SPEAKERS INCLUDE:

Brad Sumrock, Multifamily ApartmentsLarry Goins, HUD HomesMerrill Chandler, Credit SenseRob Barney, DHLC MortgageAG Gupt, Real Acquisitions SystemsJohn Jackson, Lease OptionsScott Meyers, Self Storage CentersReggie Brooks, ForeclosuresGene Guarino, Assisted Living CentersSteve Downs, The Falls Event CentersPhill and Shenoah GroveJason Schubert, Rich in FiveBrett Immel, Growth Equity GroupPlus, A Surprise Keynote!

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San Francisco and San Jose led the nation in house flipping, according to Trulia. Will that trend continue? And if not, what will be the best strategy this year for making money in real estate?

Extraordinary returns can be made by flipping houses (finding run-down properties, fixing them up, and then selling for a profit), but substantial losses can also occur. The key is understand market cycles.

In markets where home prices are increasing every single month, it’s a lot easier to make a profit flipping property. You can make mistakes, do less renovation, and sometimes do absolutely NOTHING to improve the property and STILL make money.

However, as we now know all too well, the opposite is true when home prices are flat or declining. In a down market, the chances of being able to buy at a low enough price to turn a profit get slimmer, leaving you with a very risky investment.

While home prices have been steadily rising for several years, will that continue? What are the signs we should be noticing?

Certainly we need to be paying attention to affordability. We also need to be aware of what could happen to a market if interest rates were to increase. Supply and demand is always important – is inventory increasing or decreasing?

Many markets have seen home prices surpass 2006 peak levels, and we already KNOW that was a bubble. Is it possible or even sustainable for prices to continue to increase in those markets?

THE REALITY OF FLIPPING HOUSES

The truth on the ground is far more complex than most real estate gurus would have you believe.

Inexpensive houses are getting harder to find, and yet more and more speculators are hunting for them – driving prices up. Even foreclosures are selling for close to their true market value, before any renovations have been done!

Those who are lucky enough to find deals often have to deal with mold, foundation, or pest problems – and yet prices don’t reflect the amount of work required. Fixing the prob-lems could wind up eating up far more money and time than initially planned. This can make flipping houses a full-time and difficult job – especially for those who are new at it or already have full-time jobs.

Please proceed with caution before jumping into a flip. Partner with someone who has done it successfully many times before.

mar

ket u

pdat

e Can Investors Still MAKE MONEY Flipping Property?

AN EASIER WAY TO MAKE MONEY IN REAL ESTATE

Most people are too busy to put in the hours of time it takes to find, renovate and resell property. The good news is, you don’t have to! It’s possible to see high returns in real estate with little of your own time and effort by simply pur-suing passive real estate investing options instead. And these opportunities abound. In fact, this is EXACTLY the right market cycle for passive real estate investing!

According to the Joint Center for Housing Studies at Harvard, renters made up 31% of households in 2004. By 2012, that number climbed to 35%. The rentership rate for people between 30 and 64 is the highest it has been in over 30 years! And professional management allows you to enjoy the returns on your investment without having to deal with the day-to-day stress of being a landlord.

When we buy a quality property in a safe neighborhood near jobs and good schools in a solid market, and then rent that property to a qualified tenant for more than the expenses, we create a life-long passive income steam for ourselves.

And every single year we do this, we get a raise because rents are increasing along with inflation.

There are obviously some tricks to doing it right so that the rental property is truly passive. But those tricks are easy to learn. Make sure the home is fully renovated to like-new condition so that you don’t have to deal with on-going repairs. Buy near employments centers in low crime areas with good schools. And look for property where rents are 1% of purchase price in order to get enough cash flow to cover expenses.

If you live in California or other high-priced markets, finding a property that meets this description is nearly im-possible. California property is not known for cash flow. In


By Kathy Fettke, Real Wealth Network

fact, most Californians don’t even know the term! They only know appreciation (or devastation when the market turns). They do not know the concept of investing for monthly passive income because it simply doesn’t exist in high-priced markets.

CREATING A MUCH BIGGER BACKYARD

While many “real estate gurus” say that people should look for investments in their own back yard, unfortunately that doesn’t work for people who live in high-priced markets.

But thankfully, we live in a world that has become much smaller thanks to technologies like Google Earth, cheap non-stop flights and the ability to send photos instantly via your phone. The need to drive by your property every day has become obsolete.

At Real Wealth Network, we believe in having a much big-ger backyard! We search the entire country for areas that are ripe for investment. We look for areas with job and popula-tion growth, affordability and landlord friendly laws. Mostly, we want to invest in these areas where rents are much higher than the expenses so that investors can pocket the difference as monthly passive “cash flow.”

It’s a Seller’s Market in California – Time to SELL and EXCHANGE for Something Better

The way to get rich is to buy low and sell high.If you already own real estate in a high-priced market, this

is a good time to SELL since you can ask for top dollar and get multiple offers. Then, with your profits, you can turn around and BUY LOW in areas that are still up and coming.

We are currently helping many of our Real Wealth Network members to take advantage of the IRS 1031 exchange that allows them to sell their low-performing investment proper-ties and exchange them TAX DEFERRED for much higher cash-flowing property. They are thrilled to discover they can triple and even quadruple their monthly income, and in many cases, are able to retire NOW, years and even decades earlier than they expected!

Passive investment in real estate can be one of the most powerful options available to the average person. Want to learn more? Visit RealWealthNetwork.com for free education, mentoring and a strong, trustworthy network to help you learn more about your options and maximize your returns. We can help you find the best markets for investing, and introduce you to experienced property managers, turnkey income property providers, syndicators and highly reputable real estate agents nationwide.

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PRICELESSVol. 2, No. 2, 2014

INSIDE: Strategies to Increase Your Wealth • PLUS: Highlights from Our National Expos

You Asked, They Listened: FirstKey Offering More Ways to Finance Your Investments.

FirstKey Lending Offers Investors Unique Options

FirstKey Lending Bridge Loan Features:

Loan Amounts: $10M+ Rate Type: Floating Loan Term: Up to 18 Months Property Type: 1- to 4- family residentialLoan-to-Cost: Up to 65%*Amortization: Interest onlyInterest rate: Competitive pricing*Higher on a case-by-case basis

FirstKey Lending Express Fixed Loan Features:

Loan Amounts: $500,000 to $5M Rate Type: Fixed Loan Term: 5 and 10 year Property Type: 1- to 4- family residentialLoan-to-Value: Up to 75%Amortization: 20 to 30 yearInterest rate: Competitive pricing For more information, please contact Bill Ruiz or Scott SanFillippo at: 1-855-299-1944

FirstKey Lending closed dozens of Express and Conventional

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Randy Reiff, CEO of FirstKey Lending

A year ago, New York-based FirstKey Lending was the first to step into a new financing space – making capital accessible to small- and medium-sized investors in one- to four-family resi-dential rental properties nationwide.

The financial firm’s Chief Execu-tive Officer, Randy Reiff, says the firm purposefully positioned itself to “invigorate the small and middle markets” and to “empower smart, entrepreneurial investors to build and optimize their portfolios and busi-nesses.”

The financial backing of Cerberus Capital Management, L.P., one of the country’s largest private investment firms, gave FirstKey the opportunity to hit the ground running while focusing its attention on developing the prod-ucts its customers needed.

Following the successful introduc-tion of its Conventional fixed- and floating-rate loan products for larger investors needing $5M to over $100M in funding, FirstKey launched its Express loan product for investors seeking loans of $5M or less in late 2013. That product has delivered in a big way. “We’ve been thrilled at the response of real estate investors to our Express product, which we were able to introduce in an affordable way by streamlining the documentation and closing processes,” Reiff said.

These Express loans offer inves-tors reduced borrowing costs and a much more efficient process than was previously available to these owners so that they can buy additional one- to four-family properties, refinance their existing debt or cash out.

Reiff said that FirstKey has seen strong demand for its products and only expects that demand to increase.

“Our business is accelerating as more and more customers – most of whom have historically had only limited ac-cess to this type of financing – become aware of the variety of products First-Key offers,” Reiff noted. “Histori-cally, less than 25% of the borrowers we are targeting have availed them-selves of financing of any type. We’re very excited to see that number grow as the rental finance market continues to expand.”

Reiff also pointed out that FirstKey offers products to accommodate a number of different types of inves-tors. “There’s been a lot of focus recently on the very large investors in the one- to four-family residential rental properties, but it’s important to remember that the largest segment of this market is represented by the more entrepreneurial owners who may own as few as 10 properties or less,” Reiff said. “These owners typically have strong ties to their communities and are looking to grow their portfolios in a disciplined fashion over time. We’re here to make sure that these local investors have the opportunity to grow and develop their investments.”

FirstKey couldn’t have had better timing in coming to market with a lineup of new mortgage loan products aimed at the small and middle market.

Looking to fill the void in afford-able investment housing financing, FirstKey has provided the fuel for real estate investors to make it happen.

In addition to the successful launch of the Express loan product, FirstKey continues to be the market leader in Conventional loan products geared towards larger investors as well.

What’s more, CEO Randy Reiff shared an exciting new loan pro-gram being rolled out for small- and medium-size investors in an exclusive interview with Realty411 magazine.

Continued on pg. 21

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Brett T. Immel and Preston M. Despenas of Growth Equity Group have been giving investors more of what they want and need as they guide individuals to higher yields, in safer investment properties.

Growth Equity Group Guides Investors to SAFETY & SUPERIOR CASH FLOW

“The big question is – where can investors find an efficient solution for investing in income producing real estate safely...”

A frothy stock market, roller coast-er oil prices, and higher taxes are just the tip of the iceberg of issues bat-tering investors today. Still, Growth Equity Group’s Senior Partner Brett T. Immel says none of these risks compare to the threat of rising rates, and is adamant that “interest rates will go up.”

THE REAL RATE THREATUnfortunately, the vast majority

of individuals continue to seriously underestimate the impact of higher interest rates on their investment portfolios, and lives. Whether it is in six months or 18 months, Preston warns that rising rates will impact all businesses from “mom and pop shops to large institutions, and Fortune 500 companies.” In turn this will obvious-ly hit the wallets of everyone. How-

ever, perhaps most significantly of all, it will be a blow to the yields and cash flow of investors that drag their feet in restructuring portfolios and locking in the most attractive spreads on income producing real estate.

For example, on $250,000 of lever-age, if rates rise to 8% investors would lose almost $500 per month in cash flow, and would pay almost $200,000 more in interest alone over a 30 year loan compared to a 5% rate today.

Multiply this by five properties, and factor in rising asset prices, and this is a million-dollar mistake that investors will be kicking themselves for.

IN SEARCH OF BETTER INVESTMENTS

The need to switch portfolio hold-ings is clear, but many investors have allowed themselves to be held back by uncertainty and wanting to ensure they make the perfect investment, all while trying to find the time.

Banks haven’t been kind either. According to many of the clients which have reached out to Growth Equity Group, it no longer matters if you have been banking with the same institution for decades, or have been depositing millions each year; individuals are still suffering from poor customer service,

Exclusive Interview by Tim Houghten


The Growth Equity Group team: Brett T. Immel (left) and Preston M. Despenas (right).

VIRGINIA QUICK FACTS• Virginia’s population has risen at every census since 1790.• Virginia is home to the U.S. county with the highest median income.• Virginia has the most counties in the Top 100 Wealthiest in the U.S.• Seventh largest number of millionaires per capita. • Ranked best for business by Forbes.

their skin in the game and back investors with

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Non-recourse financing is also the perfect partner for those investing with self-directed

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of their portfolio in income producing real estate is really

effectively hedging 100% of their nest egg value against inflation, while adding double digits to their net gains each year.

While GEG is a national investment firm Brett T. Immel says the firm is extremely bullish on Virginia right now. This is the #1 state for business, offers low property taxes, and has added 200,000 new jobs since 2010. Investors can find out more about the strengths of VA and the funda-mentals which are powering up the local economy, and have enabled

GEG investors to enjoy 100% occupancy rates via the Growth Equity Group blog.

The firm also recently unleashed a brand new website re-design at: http://growthequitygroup.com

NON-RECOURSE LOANSNon-recourse loans are secured by real estate, but for which the borrower is not personally liable. This preserves personal credit and is an indicator of properties lenders are extremely confident in loaning on.

“Non-recourse financing is also the perfect partner for those investing with self-directed IRAs.”

Growth E q u i t y G r o u p

Top Photo: Preston M. Despenas;

Left: Brett T. Immel

and being forced to jump through more hoops than a cir-cus animal.

The big ques-tion is – where can investors find an effi-cient solution for investing in income producing real estate safely, and get access to attractive long term leverage that enables them to fully capitalize on the current market, and lock in the best spreads?

THE GEG SOLUTIONBrett and Preston’s solution has been gaining quite a bit of media attention. Providing assistance with self-directed IRAs, and 24/7 access to everything investors could want to know about their investments via the GEGMan-ager.com portal, investors have been enjoying higher net spreads and sleeping better than they have in over a decade.

However, what really has Preston

M. Despenas pumped up right now is the pre-approved “5% non-recourse financing” that is being provided to Growth Equity Group investors. This means someone else with sizable amounts of capital is willing to put

Perhaps the most important ques-tion that all real estate investors and coaches should be asking to-day is not where oil prices might

be in 12 months, or the best city to invest in, but how to prepare and invest wisely to thrive, and continue to survive any low blows the next 12 rounds the real estate market can bring. Sensei advises to keep these six important tips in mind:

1. IT’S NOT JUST ABOUT CASH FLOWThis is that time in the market cycle when everyone starts claiming it is different, and that common sense gets kicked to the curb providing there is cash flow coming in. Passive income is awesome. Cash flow – “Please sir, can I have some more?” But there is more than just income to think about. Ask some of Sensei’s investors, and they’ll clue you into how the value here is different.2. DON’T FORGET BENJAMIN GRAHAMWarren Buffett will never let us forget his favorite Graham quote: “Investment is most intelligent when it is most business like.” This is something Sensei Gilliland takes seriously too. He believes in structuring well right from the start and frequently hosts entrepreneurial workshops for small business owners and real estate CEOs.

3. YOU CAN DO ITBelieve you can accomplish those goals. If there is one thing which may be the most destruc-tive that emerges from the copycat epidemic, it is close mindedness. Copycats have limited programming. They’re like Siri in Beta testing. Unfortunately, this often spills out online in

popular forums with new ‘gurus’ squashing the dreams of others. If you have really thought through your goals and plans, have invested in edu-cation, and have laid out a roadmap to scale realistically; don’t let some newbie guru tell you that you can’t grow to holding six or more proper-ties very quickly. Look for those that will build you up, not try and tear you down due to a lack of their own knowledge and experience.

4. NINJA’S KNOW BESTReal ninja’s are tactical. They were about as opposite from the Vikings in fighting style as you could get. They used a variety of tools to win, didn’t rush into the fray wildly, yet they knew when to take action. Perhaps most importantly they appreciated training. Martial artists don’t train to just achieve a pretty colored belt and then rush off to try and win a trophy and title, and leave their training behind. They are dedi-cated to lifelong learning, and improvement, and are never too proud to step into a dojo and learn something new from a respected leader. The same goes for real estate. When you stop learning, you have already surrendered your trophies and titles, even if you don’t know it yet.

5. ASK QUESTIONSBefore you sign up for a real estate seminar, training course, or invest with someone, ask questions. Never be shy about asking questions. What drives them? Is it just money, or is there more? How long have they been in the industry? How many times have they changed com-pany names? Interest rates are great now and you want me to take advantage before they go up. But why lock me into a 10 year balloon mortgage that will dump me into the market for a refinance when rates may be at their peak in double digits?

6. IT’S WHO YOU LEARN FROMTommy Nelson puts it as, “If smart means you learn quickly, wisdom means you forget slowly... All kinds of smart people have wrecked their lives...Wisdom is not that you can learn, but what you learn.”

There is a reason the entire nation’s education system is changing. You may not think that they have it all right yet, but what the world has realized is that we need both more practical hands-on training, and ver-satile problem-solving skills that can be applied to future scenarios as they happen, and when no text books are laying around. This is where Black Belt Investors’ training truly stands out. When you attend one of these Black Belt Investors training sessions, expect to take action.

You’ve got to learn the right investment strategies and tactics that will get you profitably through tomorrow, not just today. A big part of that is who you learn from. As in martial arts – lineage is so critical. You’d never jump into the octagon for a minute with a giant unless you were pretty confident in your coach’s proven ability to prepare you to win, right? So why on earth would anyone put the rest of their financial fu-tures, relationships, and lives in the hands of a coach that hasn’t proven they can last a single round yet? v

How to Survive 12 ROUNDS in Real Estate

Sensei Gilliland just kicked the real estate bandwagon in half. If you want to lead, get to the gold, and keep it – read this… Real estate master Sensei Gilliland has never claimed to be a real estate investing ‘guru’. He has just put in the work, stayed

focused, and refused to be knocked out. This warrior spirit didn’t just lead him to become one of the young-

est martial artists to be ranked in the nation’s top three, for five straight years. It has earned him the title ‘Sensei’ from his students, and makes him one of the few REAL Black Belt Investors.

For nearly 20 years Sensei Gilliland has been investing in real estate and he may be one of only a handful of notable trainers that still makes money from investing in real estate today.

So what makes this guy different?

GOOGLE LOVES THIS REAL ESTATE INVESTORSensei is the founder of 12 Rounds - ‘The West’s Top Ranked Inves-

tor’s Club for Successful Cash & Wealth Building’. We asked Sensei why people keep flocking to his meetup group, and why people should do business with Black Belt Investors. He said: “In 2007 there were over 100 real estate clubs in Southern California alone. When 2008 hit that number was slashed to around a dozen; and two of those left standing were mine. Now there are even more clubs. But who will be standing when the markets flex next time?”

Of his ability to withstand the second most severe recession in our country’s history, and how that is contrasted with the other 90% who folded, Sensei says: “They were very linear in their business models and thinking, and were too busy selling retail. Everyone was just jump-ing on the bandwagon of these copycats.”

If you really want to try to put Sensei Gilliland to the test in today’s ring he suggests you pull out your phone and see what Google says. We couldn’t resist the challenge! Try it…Talk about ‘mission impossible’. There are pages, upon pages of Google results for Sensei Gilliland, and everything is positive. And this is a guy who says he has never worried

Investing Insights from a REAL BLACK BELT

much about SEO. Seriously, even your teen-ager’s toughened video gaming thumbs would probably fall off before you run out of positive reviews of this guy.

Why does Google love Gilliland? He’s got depth. He is established. He has a rock solid reputation. And he has been in the ring since before most people even thought about ever using the internet to search for a home or a home loan.

WHERE IS THIS REAL ESTATE NINJA INVESTING NOW?

Most might have heard of Sensei Gilliland for his power packed, hands on, real estate training. Yet, he is still an active investor and is in the market doing deals every day. Sen-sei says that while you still might catch him helping distressed homeowners and serving up sweet wholesale deals close to home in sunny Southern California, he is also working with serious investors in re-emerging markets such as Cleveland, Kansas City, Indianapolis, and Phoenix, Arizona. Investors can check out more details and find in-depth research on these markets at: http://RemoteRehabs.com

BECOME A REAL ESTATE CHAMPFor new investors, intelligent experienced investors, and even new gurus who don’t want to get KO’d and go belly up, Sensei extends the invitation to step up, and check out the 12 Rounds Investment Club. For information visit: http://www.meetup.com/bbinvestors/This meetup is for those who want to enjoy long-lasting personal and financial success from their real estate investments.


Article by Tim Houghten

Sensei Gilliland, Black Belt Investors

The Paper Business

Turning DISTRESSInto SUCCESS In

Distress has a unique way of polishing success.

note

s

Article by Tim Houghten

Staff Writer

Much like the abrasive grain of sand that results in the development of magnificent, beautiful pearls, the trials and tribulations of the mortgage indus-

try are now revealing their silver lining. While the pain of foreclosures, an economy in rehab, and building a business in turbulent times shouldn’t be minimized, the tests we’ve been through are being turned into something positive by those that really care, and are willing to put in the effort. Fuquan Bilal, founder of National Note Group, knows this better than most. While some media outlets have posed that distressed property is declining in America, as of February 2015 there were almost 5,000 banks holding over $150 billion in non-performing mortgage notes, $600 million of this pool are newly defaulting real estate loans. National Note Group has been working to not only help heal the economy, and offer investment opportunities to help individuals get ahead, but has been going to extreme lengths to turn distress into sustainable success for home-owners. Recently, in an exclusive interview Fuquan Bilal pro-vided some of the most transparent, and detailed insight behind the scenes of the mortgage note industry.

“THERE’S A HEARTBEAT IN EVERY HOME”

While some funds, firms and individual real estate inves-tors have purely seen the financial struggles of American homeowners behind on their mortgage payments, or in foreclosure as an opportunity to seize more property and make a quick buck; National Note Group’s founder says his firm takes a very different approach.

Bilal says it is crucial not to forget that “there’s a heart-beat in every home,” and how “devastating” foreclosure is. NNG goes to great lengths not to foreclose, and to find winning, and sustainable solutions for both homeowners and investors. In fact, Bilal says out of hundreds of loans purchased in 3rd and 4th quarter of 2014, the firm had just six REOs on the books in first quarter of 2015.

Going beyond simply offering loan modifications to borrowers, National Note Group’s team has gone to great lengths to aid them in improving their finances so that they can hold onto their homes, and enjoy a brighter future. This has reportedly included “helping individuals leverage smarter spending and personal finance, without becoming miserable by switching to more affordable >

Continued on pg. 30Realty411Guide.com PAGE 24 • 2015 reWEALTHmag.com

Fuquan Bilal, founder of National Note Group

Whether you are new to the probate business or consider yourself an

experienced professional, there are times when you need to take a step back and make sure that your busi-ness model isn’t missing a potentially profitable option. Probates, with their deeply discounted prices and motivated sellers, can provide op-portunities that you simply can’t find elsewhere. These properties exist in a wide variety of formats, from small residential properties, to dream homes to office buildings, and even strip centers and warehouses. There are many ways to find residential and commercial options in probate real estate.

WHY CHOOSE PROBATES? In thinking about probate real estate, it is important to understand why so many investors are now special-izing in this industry. While there are many options in real estate if you choose to become an investor – everything from foreclosures to working with traditional buyers and sellers – there are few areas that offer the deeply discounted prices and flexible terms that can be found in probate work.

The selling of probate real estate and other property is handled by a court appointed representative, called an Executor. This individual can be a family member, trusted friend or pro-fessional, such as an attorney or an accountant. As part of their respon-sibilities, they have to find buyers for the property that was left behind by a

Finding Residential andCommercial OPTIONS inPROBATE REAL ESTATE

family’s loved one. The proceeds from these sales go to not only the family members, but to pay taxes, court costs, medical bills, funeral expenses, and other items such as past due credit card charges. This property needs to be dealt with in order to pay for these financial obligations.

The process to buy or sell a probate home is much the same as many other types of properties. Brendan DeSimone said, “In a probate sale, the property is marketed just like any other property. The probate attorney or the estate rep-resentative will hire a local real estate agent, sign a listing agreement, and show the property, just as they would a traditional listing. Generally, the list price is based upon the listing agent’s suggestions as well as an independent appraisal ordered and issued by the

court.” During a private sale, there would be no court oversight, but in a probate sale, there is a need by the Executor to quickly find buyers and get the property sold. This is one reason that the pricing can be so flexible in probates. Additionally, if the Executor lives out of state and tires of coming back to deal with estate issues, they may be willing to take a lower price on a property if the terms are favorable and allow them to wrap up the probate more quickly.

WHY LOOK AT BOTH RESIDENTIAL &

COMMERCIAL REAL ESTATE? What many investors don’t appreci-ate is that there are far more options in probate real estate than just single

comm

ercial


Continued on pg. 48

Article by Leon McKenzie, U.S. Probate Leads

took action, and went for it. We moved in, started work, ripping out carpet, tearing out walls, hanging sheetrock, all the while living in the “broken” house. She later traded this house for another house and we started all over. This may not seem like that big of a deal, but this was over 25 years ago in a small Midwest town where stereotypes were the norm and change-makers were not often welcomed. It didn’t deter her the least bit.

It’s 2015, welcome to to Lori’s world. With a busy family of homeschoolers, a thriving real estate advisory, and a farm to mange in prime Silicon Valley,

Lori Greymont is a 21st century pioneer woman. Besides juggling a busy family and business life as the CEO of Summit Assets Group, Greymont also manges a productive and busy farm with a menagerie of animals. It’s a life planned deliberately and made possible by the benefits of real estate investing. Greymont, who has been investing since her early 20s, purchases,

manages and sells assets throughout the United States for herself as well as hundreds of clients. While Greymont and the majority of her clients live in one of the most expensive areas of the nation, when it comes to investing in rentals, they prefer to venture out of state. In particular, Greymont seems to gravitate to Southern markets: Atlanta and Birmingham have been favorite spots. Recently, Linda Pliagas, the founder and editor, interviewed

Greymont in the hope of helping others to choose their lifestyle on purpose as well.

Linda Pliagas: How did you get started in real estate investing? Lori Greymont: I grew up in an environment of real estate, but in an unorthodox way. It all started when my mom negotiated with a seller to buy and fix his house, if he would be the lender. She didn’t attend any fancy seminar or the like; she just knew what she wanted,

Choose YOUR Lifestyle on

PURPOSE

“I live on an acre and a half in Morgan Hill. In the Midwest where I grew up, this would be a postage stamp! Here in Silicon Valley, it’s a good amount of land. We have horses, chickens, dogs, cats and up until a year ago, two milk cows.”


Lori Greymont enjoys a simple country life in high-tech Silicon Valley.

By Linda Pliagas

Linda: Sounds like your mom was special? Lori: As you may know, my mom recently passed from her battle with cancer. I had 18 months of time with her because I had set up my business as a business. What I mean by that is my business was systems and people based, not me based. I was able to step out for days or weeks at a time and things would still be happening. Essentially, it allowed me to spend this time with her, which was not only a gift for me, it was my give back to her for what she has given me. She is my hero. My mom was a serial entrepreneur. As a kid, I never really paid attention to all that she was doing but now I reflect on it in awe and gratitude for the lessons I learned first-

hand through lifestyle. They were lessons not taught by words but by her life. Here’s an example of how she thought outside the box. Shortly after my parents divorced, she wanted to make sure we had

a Christmas with gifts under the tree. So, she talked to the owner of a grocery store and secured the ability to sell Christmas trees at the store that year. In September, we went out to the farm and marked the trees we wanted. Then, the day after

Thanksgiving, we set up shop. The trees were cut the day before Thanksgiving, we built stands to hold the trees, had a small travel trailer placed there to sit in during the cold, hand painted signs – the whole

nine yards. After school each day my brother, sister and I would go to our tree lot and setup our homework on the table, cook hot chocolate on the stove, and sell trees when someone knocked. There were no video games or TV’s to entertain us. We worked. She told us we could have Christmas on Christmas like everyone else or if we wanted to wait until a couple days after Christmas, she could get us a lot more because of the clearance sales.So, we sold trees until

Christmas Eve and had our Christmas a few days later. In this simple example, she was teaching us to live for what is right for us, not to conform to the normal status quo. She also taught us the value of working.

Linda: When did you buy your very first house? Lori: I bought my first personal investment at age 20 when I was still in college. It was a 3 bedroom house on a HUD program with $500 down and 18% interest rate. I didn’t have a job, but I was able to qualify for the loan on my own by getting leases signed for the income. I rented out 2 bedrooms and finished out the basement as an apartment. It was my first experience receiving cash flow and I was hooked. I upgraded to a better cash flow house a couple years later and haven’t looked back since.

Linda: How did you learn to get over your fears? Lori: As mentioned above, I was raised in the shadow of a powerful business woman, my mom. She taught me that I can achieve or have whatever I set my mind to. With that kind of knowledge, I didn’t feel constrained by fears. I felt like whatever problems came up, I would be able to solve it somehow.

“I couldn’t let fear be the master that enslaved me.”


>

Top photo: Lori is surrounded by family: Her daughter, mother and sister. Below:

Her recent Atlanta tour was a huge success.

We have all heard the mantra is: “Go to school, get a degree, get a good job.” I actually started down that path. Then, I saw death and the fragility of life in a very real way. My mom’s sister, brothers, mother and father all died in less than three years. Her siblings were young and in the prime of their lives. One thing I remember hearing growing up was “When I retire, I’m going to…” and none of them made it to retirement. I decided that death was going to come some day, and so I needed to choose to live every day to its fullest. I couldn’t let fear be the master that enslaved me. Think about it, how many people live a passionless life because of the fear of something they aren’t doing? Why not

do it and see if that “fear” thing actually materializes? Most likely it won’t and you will know for sure.

Linda: How did that life event change you?Lori: I decided I was going to create the lifestyle I wanted. I would live life each day rather than plan for it when I retire. I refused to work 40 hours a week for 40 years at a job I hated so I could have enough money to go do the things

I wanted to do for the remaining years of my life. With that decision, I knew that owning my own business was the key to my plan. So, I finished my degree as a backup plan and started on my path of being a business owner. I was determined to live a “no regrets” life.

Linda: You often mention that you live a contrarian life, what does that mean and why?Lori: My use of the phrase “contrarian” life is to explain that I don’t conform to the normal for the sake of fitting in. It ap-plies to my life as a whole in most of the major decisions. I do the things that I want to do, regardless of how it might appear to others.

I live on an acre and a half in Morgan Hill. In the Midwest where I grew up, this would be a postage stamp! Here in Silicon Valley, it’s a good amount of land. We have horses, chickens, dogs, cats and up until a year ago, two milk cows. I would milk my cows once a day and local families would help consume the copious amounts of excess milk I had. We drank it “raw”! You might be thinking “eww” or “is that safe?” but, with education, you would find that raw milk is much healthier

for you when you know the source is clean and safe. And nothing beats all the yogurt, cheese and kefir you can make with the whole fat milk straight from the cow! We also raise and butcher our own meat. Now, there is no way I have room on my little amount of land, but I partner with others who have the land so I know what’s going on my table from start to finish - beef, pork, turkey, lamb, etc. Until my mom needed my attention, I homeschooled my four children with the help of local co-ops. When I told my family 15 years ago my plans for school my brother asked “Are you going to brainwash your kids?” and I thought for a moment and replied, “Yes.” My internal thought was, “Yes, as a matter of fact I am! I am going to create God-fearing, people-loving, creative, problem-solving, entrepreneurial adults.” I now have two heading off to college next year. They are all that and more, not because of any one person, but because of their lack of fear to get what they want and their love of learning. Look, I have the same concerns and cares in this life as everyone else does. I just choose to seek out an answer that fits what my goal is, not just settle for the obvious or common answer. I choose to create the lifestyle that supports the aspira-tions, goals and dreams of my family and then I put the construct around that to support it.

Linda: Isn’t it expensive to live your lifestyle?Lori: You might think to yourself, that’s

great, you have all the money you want to do that! The truth is I didn’t start with money as a factor in the picture at all. I made decisions on what I wanted and then I found a way to make it happen. Whatev-er resources I was lacking, I partnered. I became a deal maker in my personal life and my professional life. I am a “Both/AND person not an Either/Or.” I want both. I want my cake and I want to eat it!! This is what I mean by “I live a contrarian life.” Rather than just floating down the

“We have transacted over 1,600 properties since 2010 and in each case we feel we have added value to the people in

the transaction, the homes and the communities.”


sea of circumstances life gives me, I make deliberate choices to create the life I want now and in the future.

Linda: If there is one trait an investor needs what is that trait?Lori: Decision making. It’s not just a skill needed as an investor, it’s a skill needed in life. Decision making is a process, but no one is teaching it. Instead people are left to feel their way through or to develop a process that works for them, until they make a bad decision and then they are stuck. I never realized how hard it was for people to make decisions until I started teaching real estate investing. People get stuck at the decision stage and never move forward, which in and of itself is a decision. I have created a decision-mak-ing matrix I use with my students, but it really comes down to one simple question: Which decision are you going to regret more at the end of your life? The time you waste waiting to make the perfect decision is time that is lost because “Time is the only thing in life that we never get back.” If you make a decision and you lose mon-ey, you can earn that money back. So what if you make a mistake? Try again. If you let time slip by and you never try, you are left with regret. I want to live my life to the fullest — that sometimes means fail-ing, but you can never find out if success is there if you don’t try.

Linda: Is real estate investing for every-one? Lori: I personally think it is, if you are looking to build wealth. When you look at where most of the wealth is built, you will find it is in real estate — for several reasons: It’s real, it’s insurable, it’s in demand, it appreciates in value faster than inflation as an average, and it can be lev-eraged. You can’t do that with traditional investments like stocks, so it’s safe if you invest with the fundamentals in mind.

Linda: Have you encountered any chal-lenges that you think are unique to being a woman in real estate? Lori: In my current business, I often work with contractors that are rehabbing my homes. I have been rehabbing since I was a teen, meaning physically doing the work. So now that I am the owner hiring the work to get done, it’s not uncommon for a contractor to offer a solution that costs more than necessary.

I will listen. Then I tell them how I would like it done and pretty much don’t leave any ambiguity that I am correct. I usually get the response of “Oh, I didn’t think of that,” or “Yes, that will work.” Unfortunately, there are some people who have an issue with a woman directing the job. I’ve learned to part ways amicably and move on. There is no value spending valuable energy trying to change their opinion.

Linda: What do you love most about investing in real estate? Lori: Making a difference. Our mission is to add value to people, homes and com-munities. Real estate is the one business that encapsulates all of that. I especially enjoy helping people over their fear of whatever is holding them back from cre-

ating the life they want. This starts with one decision on their part to make real estate part of their portfolio, and then we go from there. I also enjoy the hunt of the deal. I love cash flow each month off the properties. It comes down to improving or adding value to make a positive impact.

Linda: What is your biggest accomplish-ment so far? Lori: Besides raising my children in the business along side of me, my biggest accomplishment has been making a differ-ence that can be measured. We have trans-acted over 1,600 properties since 2010 and in each case we feel we have added value to the people in the transaction, the homes, and the communities. When people were


Continued on pg. 62

The riding trails near her home offerLori the tranquility she needs to balance her busy life as a local real estate leader.

The distressed mortgage market is massive, and even when you are capable of raising millions rapidly like Berkshire Hathaway and National Note Group, you’ve got to be able to deploy capital fast, and efficiently in order to maximize investor returns, and the potential of your organization.

Bilal says that he tackled this chal-lenge early to ensure scalability, speed, and efficiency by getting serious about Process Mapping. He explains that by “documenting processes the first time around, leveraging Microsoft Excel, and better managing data – the firm is able to hire and scale effectively, eliminate human error, and operate leaner and more profitably, with better margins than others.”

It is from this vantage point that Bilal says the firm is able to provide better service, financial strength and security, more investment and portfolio tracking tools, and advanced training through the NNG Academy.

For more information, please visit the firm’s new website, tools and trading desk at www.NationalNoteGroup.com.

FirstKey Lending Offers Innovation

services like Netflix and Metro for phone and TV, assisting in job search-es and arranging interviews for the unemployed, and even helping those with homes that are now too large to strategize renting rooms to students for extra income.”

Harnessing an Elite Level of Focus

So how does Bilal manage it? Clearly, consistently maintaining a clear level of focus, effectiveness, and creative strategic thinking that can deliver on the above without becoming burned out, and operating a multi-million dollar business that juggles hundreds and thousands of second mortgage loans, and provides double-digit returns to investor clients requires a lot more of a CEO. Among his secrets to enhanced performance and success Bilal tells us his daily routine includes: “Starting each day with 24 minutes of medi-tation; one minute for every hour in the day,” as well as “daily exercise, and practicing time blocking.” The

founder says turning these practices into regular habits just like brushing your teeth every morning makes all the dif-ference in staying on track. It helps keep you refreshed and charged, though Bilal says it also helps when you are really passionate about what you are doing. In this expert’s case he says he doesn’t feel like he is really working at all, and often hops out of bed in the middle of the night with new ideas and strategies for helping homeowners.

However, the National Note Group executive says that he absolutely relies on having an amazing team for execut-ing on all of the company’s objectives. Bilal describes his approach to lever-aging top industry talent not only by offering good compensation, but by em-bracing “working with people smarter than me, treating them as partners, not employees, and giving them the authori-ty, and creative liberty to be their best.”

When You’ve Got Warren Buffett Size Problems

When you are tackling a national challenge that dwarfs Warren Buffett’s wealth it requires a great system.


Turning Distress into Success, pg. 24

celebrate with your workers and team, and when it closes, celebrate again! Then take some of your profits and buy some long-term hold properties for inflation hedging assets, for passive income, and for future early retirement. v

Tom Wilson is a 37-year

real estate veteran who has executed over $100M and 2,000 units of real estate investments. Wilson is also a weekly host of the Real Estate 360 Radio program on KDOW 1220 am every Wednesday at 2 pm. Listen to his podcasts on iTunes or his website: http://tomwilsonproperties.com


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where you want to focus. Don’t be in too big a hurry or you will overpay. Know what your maximum price is before you offer and negotiate. Don’t fall in love with it; be prepared to walk away if it doesn’t pencil out. After you win, do your homework, set subs in place, prep for per-mits and be ready to demo on day one after COE. Set artificial deadlines and/or give contractors incentive and penalty clauses. Set high expecta-tions and drive for closure. Use planning tools to make sure no material or subsequence delays the project. Motivate your crew with compliments, buying lunches, bonuses; let them know that you feel that they are important, they are. Get rid of non-performers. Re-evaluate your market carefully and set your specific strategy when you list. And when the project is complete,

FLIPPING LEVELS• Wholesale with

assignment contract

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• Cosmetic added valueStructural added value

• Added value with new addition

• Scraper with new build (Speculation home)


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P R I VAT E 411

FirstKey Lending Offers Innovation

Makes 30 Year Loans Available to Portfolio Borrowers

Featuring Randy Reiff, CEO of FirstKey Lending, LLC Exclusive interview with

Tim Herriage, Managing Director of B2R Finance

Mark Hanf writes on Attracting Private Money

Plus, Insight fromGCA Equity Partners

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CONTENTS

P R I VAT EMoney411

The Source for Real Estate Finance

36 Tim Herriage with B2R Finance

38 Networking Tips for Business

40 New Options for Investors

from FirstKey Lending, LLC

44 Strategies for Private Lending

45 Celebrate Private Money411

46 Applied Business Software

CONTACT US: 805.693.1497 [email protected] social and receive updates on: Facebook, Twitter, LinkedIn, Pinterest, Google+ and more

Important Disclosures for Our Readers:The information provided therein do not constitute an offer or solicitation to buy or sell securities or real estate. Please be aware that real estate investing can be risky. Realty411, the publisher of Private Money411, is not responsible for any information provided and/or statistical data presented, and does not reflect the opinions, advice or research by us. Readers are 100% responsible for their due diligence, for all investment information and for all decisions with respect to any potential investment or transaction. 411 recommends readers seek the advice of a trusted attorney, broker, CPA and/or financial adviser before investing in real estate.

PRIVATE MONEY 411 Cover: Randy Reiff, CEO of FirstKey Lending, LLC,introduces 30 year mortgage loans for portfolio borrowers.

Mingle with hundreds of active investors in Las Vegas, Nevada. Private Money411 will be hosting industry gatherings with a focus on technology and finance. For more information, see our ad on page 45.

Photo right:Tim Herriage,

Managing Director for B2R

Finance,pg. 36

Photo left:Wyatt Gilbert joins

Applied Business Software, pg. 46

Photo above: Mark Hanf with Pacific Private Money, pg. 38


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When B2R Finance launched its

first products in late 2013, it was a game changer for rental prop-erty investors. The company was among the first to offer a financing option designed specifically for small to mid-sized buy-and-hold real estate investors.

Fast forward a year, and the company is growing rapidly, indicating a bright future for B2R and the single-family rental market. This year, according to Managing Director Tim Herriage, B2R has ramped up to meet the pent-up demand as one of just a handful of companies offering this type of product, and has added approximately 50 employees spread across three offices in Charlotte, New York and Dallas. The company is also looking to the future, shoring up its leadership team by adding highly strategic and experienced leaders in new roles of CFO, COO and CEO.

Realty411 asked Herriage, also a long-time investor in the single family rental market, what’s next for the sector.

Herriage: We remain bullish in our outlook for a number of reasons.

First and foremost, demand remains high. As your readers are well aware, 98 percent of the nation’s estimated 14 million single family rental homes are owned by smaller investors, but access to credit for these investors had previ-ously been incredibly restrictive – of the millions of homes owned by small investors, 10 million are not financed. In

short, these homes were

unleveraged because of a

gap in the mar-ket. B2R and our

competitors fill the gap. As these smaller in-

vestors become more liquid, we could see them pursue additional invest-ment properties or reinvest in their current properties, adding activity to the market.

Second, homes continue to recover val-ue lost during the Great Recession. While there is some speculation that declining foreclosure activity might weaken the overall opportunity, most of the investors we encounter have always acquired sound, cash-flowing rental homes from traditional sources. Fewer homes underwater actually mean an increase in the overall value of our investors’ portfolios.

Changing demographics also serve to bolster the SFR market. According to a report from the Harvard Joint Center for Housing Studies, 35 percent of households rent, up from 31 percent in 2004, and of them, 20 percent report no intentions to buy, either because of macroeconomic conditions, personal financial concerns or for reasons of preference or lifestyle.

A growing renter base leads to lower vacancy rates, which has led to favorable rents for our investors. The average na-tional effective rent rose 12 percent in the

last four years. Overall, the market is strong, with

returns averaging 9 percent, according to Daren Blomquist, vice president at Real-tyTrac, and annual gross returns reached as high as 41.57 percent in Edgecombe County, N.C., the highest of all the 586 counties recently analyzed.

A recent Yahoo Finance story probably sums it up best. In the Oct. 31 article, an investment banker who focuses on putting together deals that package loans to investors noted, “The real market is this market. It’s where everything is actually going to get to.”

About B2R Finance: B2R Finance, America’s Buy to Rent Lender, is the leading provider of residen-tial buy-to-rent mortgages for property investors, with offices in New York, Char-lotte and Dallas. The Company offers effective and innovative lending solutions dedicated to residential rental property investors. B2R operates in partnership with the nation’s leading commercial and residential real estate experts to ensure that its loan products and customer service are in the forefront of the growing residential rental investment market. B2R can assist any size investor with a variety of lending products to enhance customer investment. Further information is avail-able at www.b2rfinance.com or on Twitter @B2RFinance.

B2R Predicts Strong Year Ahead for Rental Home Market

About Tim Herriage, Managing Director and Head of Marketing and Business Development A 12-year real estate investment veteran, Tim has purchased more than

1,000 single-family houses, many of which he holds as rental property today. He is the founder of the larg-est individual investor-focused trade show in the U.S., the REI Expo, building on his passion for real estate investing and the opportunity it represents for those who want to take control of their retirements. Tim Herriage also proudly served as a sergeant in the United States Marine Corps.


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People are always asking me how I was able to build my private lend-ing business so quickly. How did I attract several

hundred investors in just a few short years? Well, the simple truth is that I discovered how to network effec-tively. Networking, as I define it, is

the act of building your business one relation-ship at a time. Effective networking is based on the premise that “how we show up” in the world is key to attracting success.

My view of Effective Networking is based on three premises: • Our lives succeed or fail gradually, one conversation at a time. • People don’t like being talked to. They want to be talked with. • The simple truth is, people do busi-ness with people they like.

A key point to keep in mind is that, while no single conversation is guar-anteed to change your life, any single conversation CAN. The conversa-tion IS the relationship.

As I network, I’m ever mindful of a quote from real estate expert Robert Helms, who said we are all just one relationship away from an explosion in our business!

I know this to be true, because

few questions to find out who they are and what they’re doing, and whatever they say, I find a way to be agreeable and compli-mentary about it.

So, for example, I’ll find out where in the area they’re from, and I

might say “oh, yeah, that’s a really nice area”; or if they tell me they’re doing fix & flips I might say “yeah, I have several friends who are doing really well with that. How’s it going for you?” As I probe about them, whatever I find out, I’m agreeable and complimentary about it.

So the initial interaction with some-one is not so much “how are you” but “who are you”. People love to talk about themselves, so I always make the initial interaction revolve around them first. And the most important component I bring to each conversation is authen-ticity. People need to perceive you as authentic. They need to perceive your compliments and agreements as genuine and not forced.

how I went from zero borrowers and zero investors to writing nearly 1,000 loans and attracting over 400 investors during the past five years was a result of daily conversations and a series of mini-explosions in growth, all from forming new relationships. Now when it comes to networking and talking with people, here’s an important

concept: When you meet people, try to speak and listen as if this is the most im-portant conversation you will ever have with this person. Because, quite frankly, it is. First impressions are always the most important – we all know this. So make sure that your first impression is an attractive one.

One of the methods I employ is a strategy best described by expert networker Scott Ginsburg, who wrote The Power of Approachability, and here’s how he puts it: “Make people fall in love with you by helping them fall in love with themselves first. You do that by giving them a front row seat to their own brilliance”. The way I try and do that whenever I meet someone is to immediately engage them with a

When I attend an event, my goal is not a certain number of connections but at least

ONE KEY connection.


By Mark Hanf, Pacific Private Money

EFFECTIVE NETWORKING for Your Business Success

You see, authenticity is the new cur-rency in business today!

Why? Consumers today are more aware and hypersensitive to sales tactics because they are bombarded all day with propaganda from radio, news-paper, TV and, now more than ever, the Internet. The number of marketing messages we receive each day is astounding. Our phones ding and ping all day with incoming emails and text messages. People are not having effective communications like we used to, and whether they know it or not, they yearn for it.

So, I repeat: Authentic-ity is the new currency in business today!

Your authentic self is who you are when you have no fear of judgment. It’s the person you are before the world starts pushing you around and telling you who you are supposed to be. And the truth is that the real you is the best you, and it’s the most powerful tool for forming real connections that will grow your business. One of the keys to authenticity is being relaxed, genuine and friendly. Another key is to be informal. I tend to be very informal with people I’ve only just met. I’ll start talking to them as though I have already had a warm introduction. I have found that to be very effective and in fact it tends to disarm people very quickly. Rarely have I found resistance to this tactic of using informality and literally just striking up a friendly conversation.

So for me, when I’m networking, I’m not trying to be impressive, but rather

I learned to become good at being authentic and comfortable with being transparent.

Many don’t realize just how attrac-tive it is to others when you wear your heart on your sleeve and you are ap-proachable and disarming. Now I will admit that transparency is not always easy and for many it takes courage. Wearing your heart on your sleeve takes guts.

In networking, the goal is making a connection, which then leads to a relationship.

Communicating effectively is all about how you show up in their world, in their universe. Effective networking is not about you. It’s about how you make others feel about themselves.

Now a lot of networking experts will tell you how to work a room as though the goal is about transactions. In other words, getting in front of as many peo-ple as possible, making it a numbers game. There have been books written about this. But I disagree. Building re-lationships, in my opinion, is not about transactions, it’s about connections; and not just any connection but effec-tive connections. It’s about creating opportunities for genuine and authentic interactions that lead to advantageous opportunities for both parties.

When I attend an event, my goal is not a certain number of connections but at least ONE KEY connection. So in Effective Networking, the conversation IS the relationship, and the result of a continual flow of new relationships is explosive growth in your business.

Excerpted from the program “The Insider’s Guide to Attracting Private Money” by Mark Hanf, available at www.AttractingPrivateMoney.com. Mark is broker and president of Pacific Private Money, one of Northern Cali-fornia’s most respected private lenders.

to leave an impression. In addition to being authentic and genuine is that I practice what I refer to as transparen-cy. Some call it wearing your heart on your sleeve. So, for example, when I’m talking to someone about my

business, especially my business success, I make sure I slip in some humility, which for me is oftentimes the story of how I ended up in this ca-reer, which includes how I ex-perienced failure when the

real estate market

turned in 2007. Since many of the

people I network with are in the real estate market in

some form or fashion, by revealing some humility, I give them permission to share their own particular experience without shame or judgment. And thus, we have a bonding experience! Sharing what is real about you is the key to building real relationships with oth-ers. When you show your authentic self, people will respond in kind. Moreover, being ourselves is our defining feature! It’s what sets us apart from our compe-tition!

I will tell you right now that if you asked me what was the one thing that helped me be most successful I would tell you that it came from the fact that


Contact our SFR Specialists today to get started!1-844-474-5076 | www.firstkeyrentalfinance.com

We finance one

property or many

properties

•

No limit on how

many houses you

can finance

•

Loans of

$75,000 and up

• Lower your Rate

• Manage your Cash Flow

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• Take Cash Out

30 year fixed rates Fully amortizing No prepayment penalty

You’re looking to build your rental portfolio. We’ve got the

tools to help you do it.

FirstKey Lending, LLC only makes loans for a commercial or business purpose and does not make residential mortgage loans. Loan products may not be available in all states and are subject to credit application and approval. This is not an offer or commitment to lend. FirstKey Lending operates out of several locations, but not all locations conduct business in all jurisdictions. FirstKey Lending, LLC an equal housing lender. 4 Inter-national Drive, Rye Brook, NY 10573. Tel: (888) 707-5040. NMLS Unique ID No.1063414 (www.nmlsconsumeraccess.org). FirstKey Lending products and services offered in California are made or arranged by FirstKey Lending CA, LLC pursuant to its California Finance Lender Law License. Arizona Mortgage Banker License No.0925342. Loan products may not be available in all states and are subject to credit application and approval. Other restrictions may apply. Rates, terms and products subject to change without notice. This is not an offer or commitment to lend. 11/2014

We can help you refinance or buy more investment

properties


FIRSTKEY LENDING Continues to Innovate

FirstKey Lending revolutionized the real estate market for entrepreneurs investing in residential rental properties when it began offering its one of a kind single-property

loan product earlier this year. A fully amortizing 30-year fixed rate loan with competitive rates and no prepayment penalty. FirstKey’s Express sin-gle-property loan product offered entrepreneurial landlords the ability to manage their cash flow by avoiding interest rate risk and large balloon pay-ments at the end of the loan term.

“We saw immediate demand for our Express property loans,” says Randy Reiff, CEO of FirstKey Lending.

But, as a market leader, FirstKey is committed to making it even easier to invest in one- to four- family rentals and is constantly innovating to provide addi-tional financing options to current and prospective customers.

Responding to the success of its Express proper-ty loan product, FirstKey recently made significant enhancements to the Express program to bring the benefits of this unique product to entrepreneurial cus-tomers who own portfolios of more than 10 properties.

FirstKey is now also offering 30-year fixed rate solutions for portfolio loans of up to $5 million dol-lars with no restrictions on the number of properties financed. Like the single property loan, these portfolio

Makes 30 Year Loans Available to Portfolio Borrowers

Continued on pg. 43

Randy Reiff, CEO ofFirstKey Lending, LLC

Contact our SFR Specialists today to get started!1-844-474-5076 | www.firstkeyrentalfinance.com

We finance one

property or many

properties

•

No limit on how

many houses you

can finance

•

Loans of

$75,000 and up

• Lower your Rate

• Manage your Cash Flow

• Grow Your Portfolio

• Take Cash Out

30 year fixed rates Fully amortizing No prepayment penalty

You’re looking to build your rental portfolio. We’ve got the

tools to help you do it.

FirstKey Lending, LLC only makes loans for a commercial or business purpose and does not make residential mortgage loans. Loan products may not be available in all states and are subject to credit application and approval. This is not an offer or commitment to lend. FirstKey Lending operates out of several locations, but not all locations conduct business in all jurisdictions. FirstKey Lending, LLC an equal housing lender. 4 Inter-national Drive, Rye Brook, NY 10573. Tel: (888) 707-5040. NMLS Unique ID No.1063414 (www.nmlsconsumeraccess.org). FirstKey Lending products and services offered in California are made or arranged by FirstKey Lending CA, LLC pursuant to its California Finance Lender Law License. Arizona Mortgage Banker License No.0925342. Loan products may not be available in all states and are subject to credit application and approval. Other restrictions may apply. Rates, terms and products subject to change without notice. This is not an offer or commitment to lend. 11/2014

We can help you refinance or buy more investment

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loans have no prepayment penalties, making them even more attractive for entrepreneurial investors who want to lock in long-term financing but maintain flexibility to sell assets or manage their investments.

“The needs of entrepreneurial investors are not necessarily the same as institutional investors. With the introduction of this product, we are giving customers who are a bit less rate-sensitive the ability to choose a long term, fixed rate solution with complete prepayment flexibility,” said Reiff. “Recognizing that the needs and aspirations of entrepreneurial borrowers might change over time is what inspired the original 30-year property product, and we are now thrilled to make it available for customers who want to borrow up to $5 million against their multi-property portfolios.”

FirstKey was the first national lender to target entrepreneurial borrowers in the rental finance space and has prided itself on innovating a wide variety of programs meant to make it easier to invest in the SFR market.

For FirstKey, it’s not just about the borrower’s credit score, but the strength of the borrower’s investment. FirstKey looks primarily at the property’s value and the cash flows to determine the investment’s ability to service and ultimately repay the debt. This evaluation model can make FirstKey’s financing products accessi-ble to a wide range of customers.

For entrepreneurial investors more interested in optimizing rate than term, FirstKey continues to offer Express portfolio loans under $5 million for 5, 7 or 10 years at some of the lowest fixed rates available in the SFR space.

FirstKey’s wide range of products also includes options for many other types of investors. Premier provides non-recourse loans from $5 million to $500 million to mid-size and institutional rental investors. For entrepreneurs more focused on fixing properties and selling them, FirstKey also offers loans for rehab projects between $100,000 and $1,000,000 through its Fix & Flip program.

“We are proud to continue innovating and improving our market-leading products to serve the unique needs of our entrepreneurial and institutional investors,” said

Reiff. “Whether one property or 10,000, our suite of SFR finance products provides a variety of solutions to the entire spectrum of investors.”

FirstKey continues to simplify the logistics of all its programs, streamlining the documentation process and in-creasing the ease of closing. These efforts make it easier to manage expenses and navigate the process for customers who may be financing their investments for the first time.

FirstKey is backed by Cerberus Capital Management L.P., one of the country’s largest private investment funds, giving it the resources it needs to continue advancing in the market. FirstKey management said the recent moves were an effort to continue offering exciting new options and the value that its customers have come to expect.

More information, please visit: http://firstkeylending.com

FirstKey Lending Offers Innovative Opportunities, pg. 40

“With the introduction of this product, we are giving customers who are a bit less rate-sensitive the ability

to choose a long term, fixed rate solution with complete prepayment flexibility,” said Reiff.


I Want to Share a Secret with You…

I used to believe that the only way to generate income through real estate investing was by owning property and renting it out. I bought (and later sold) single family rental houses, fixed them up whenever necessary, and found tenants for each of them.

What I quickly learned was that being a landlord wasn’t as easy as I expected. I had to deal with tenant issues and maintenance problems, and pay for “extras” I hadn’t really considered like insurance and property tax-es. (I quickly found out why landlords like to complain about the “three Ts” – tenants, toilets, and taxes!)

I didn’t realize that there was another way to create income through real estate investing – a way that more sophisticated investors had figured out which earned them solid returns without the hassles of owning proper-ty directly. It’s called “private lending”.

WHY I LIKE PRIVATE LENDINGPrivate lending simply means providing loans that are secured by real property. The investor/lender earns money by collecting interest for their loans and in some cases can also profit from apprecia-tion in the property that they are lending against. Private lending isn’t for every investor, but the following are some of the reasons why I like it as part of my real estate investment strategy.1) The returns can be as good, or better than those you get from renting property.2) Your loan is secured by the equity in the property you are lending against.3) Since you don’t own the property, you don’t have to manage tenant or maintenance issues.4) You can invest in loans made against a wide range of property types.5) Many different lending models are avail-able from one investor / one loan to pooled funds.

DIFFERENT PRIVATE LENDING MODELSThe most basic private lending model is to provide first mortgages to individuals or entities that need them to buy or refinance a property. In this case, the loans may be structured in two ways. First, as fully amortized, meaning principal and interest are repaid together on a regular, periodic basis. Alternatively, as interest only, meaning only regular, periodic interest is paid during the life of the loan, with the principal repaid in a single balloon payment at the end of the loan.

Another model is to provide second mortgages to bor-rowers, typically for a higher rate of interest and structured as fully amortized or interest-only loans. These second mortgages can be higher risk since, in the event of a de-fault, foreclosure, and/or property sale – the first mortgag-es are paid off first and any remaining money is used to pay the second or further subordinated mortgages.

A third model is known as shared equity. In this model, the lender provides the borrower with a loan in return for interest and a share of the appreciation in the property when it is resold. Shared equity models typically only apply

Is Owning Investment Property the Best Way to Generate Income

from Real Estate?


Insights by GCA Equity Partners, LLC

>

to properties that have strong appreciation poten-tial, such as so-called “fix-and-flip” deals or new con-struction. However, when this model applies, it can increase the return potential by adding an equity-based component to the standard interest-only model.

PRIVATE LENDING FUNDS

While much of the private lending activity is single or multiple investors support-ing a single borrower, there is another model based on an investment fund. In this approach, a fund manager organizes a collection of investments from multiple investors, and then uses the pool of money in the fund to make loans to borrowers. Currently, there are a variety of real estate mortgage funds available, with a range of investment strategies including the same ones described previ-ously for individual inves-tors. Investing in funds, or mortgage pools, has both advantages and disadvan-tages relative to individual private lending. One advan-tage is that capital efficiency is typically higher, since it’s easier for a fund manager to match their larger pool of capital to particular

deals and thus keep the funds more fully invested. Another is diversification, since funds from each investor are distributed across multiple loans. Some investors may find a disadvantage, in that they like to review their own loans and make their own decisions about whether or not to lend on a particular deal. With fund investing, those decisions are made by the fund manager rather than the individual. Of course, for other investors, having a professional man-ager evaluate the deal is actually seen as an advan-tage. Private lending can be a great way to invest in real estate without the hassle of owning property, dealing with maintenance issues, or managing tenants. It focus-es on the financial aspects of real estate investing by allowing individual investors (by themselves or as part of a fund) to essentially become the bank and to finance real estate transac-tions using the security of the real estate as collateral. To learn more about private lending, contact GCA Equity Partners, LLC at 408-369-1571, x101 or email: [email protected]

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Applied Business Software ExpandingApplied Business

Software, makers of The Mortgage™

Office, recently an-nounced the hiring of Wyatt Gilbert, Nation-al Sales, to further develop their growing presence with The Loan Office™ software launched this past April 22, 2014. The Loan Office™ soft-ware has been classified as affordable, easy-to-use software, specifi-cally designed for the small lender. Some of its features include: Quick-Books integration, built-in document scanning, loan charges and advances tracking, recurring and event driven reminders, unearned discounts, email statements and notices, incremental funding, conversation log, insurance and senior liens tracking, unlimited user-defined fields, Mic-rosoft Office integration, and much more. The Loan Office™ software has been quickly gaining momentum since its launch mid last year with a record ending year in sales and customer satisfaction, typical of Ap-plied Business Software products. Now, under the head-

ship of Wyatt Gilbert, TLO is expected to beat a sales re-cord in 2015. Wyatt comes with a wealth of experience in the IT world where he began his career, before moving into the auto com-mercial equipment industry. He has a keen sense of knowledge of The Loan Office™ software and feels, in his words “fortunate to have joined a group of tal-ented developers and loan servicing connoisseurs. I’m excited about the future of The Loan Office™ software. Having an unparalleled product with exceptional Tech Support to back it up, undoubtedly separates ABS from the competition; and with the introduction of The Loan Office™, we can now offer our solutions to what is considered a smaller lender and subsequently, a larger audience.”


- TECHNOLOGY -

Applied Business Software Expanding

We all want it, we all need it, and we all look for it in every

aspect of our lives…securi-ty. We seek security in our relationships, in our person-al lives and in our financial lives. But why? What is it about feeling “secure” that makes this emotion the base of all human needs?

Have you ever been out late at night on the streets and found yourself in fear for your life? Or, maybe you have experienced the fear of foreclosure, lawsuits, judgments, liens or financial doom? Sure, we have all felt fear in one form or another, but facing your fears and taking action to reduce or avoid fear is what a mature person does. As a parent, I know it is my job to protect my family from all threats (personal or financial).

Security is the opposite of fear. Our primal instincts teach us to fear the unknown and protect what we have. Because the loss of what we have (or will have) makes us feel insecure. Nobody likes to feel insecure.

As real estate investors we think

differently than the average citizen. We take on more risk to ourselves and our family for the possibility of a brighter future. Risk and security are opposites. Yet, as investors, we try to balance these two concepts to yield maximum results with minimum loss.

Finding security in your financial life will help you find security in your personal life (how many divorces result from bankruptcy or money problems?). Personal security and financial security are intertwined.

So, what does “finding security” have to do with using a Land Trust to hold title to your investment property? A lot. When you hold title to investment real estate in a Land Trust you do not own the real estate…you own the Trust.

Not holding title to your real estate in your personal name keeps you out of the public records (your Trustee’s name is in the public records instead). Ninety percent of the information gathered about you (and often used against you) is mined through the public records in your town. Always ask yourself before signing any document, “Is this going to be recorded?” And, if it is, try to find another way to proceed.

Should you use an LLC to hold title to your investment property? Absolutely NOT! Yes, I use LLC’s and they are good asset protection devices (as long as they are formed in the right state…which is not necessarily the state YOU live in or your property is located in), but LLC’s are registered with the State and are easily tracked. Putting more

than one property into any entity (LLC, Corporation or Land Trust) will create a nexus for a lawsuit. Most (smart) real estate investors will title each of their properties in the name of a separate Land Trust and then make the beneficiary of the Land Trusts their LLC.

Imagine how secure you would feel if you went to bed tonight knowing that you did not “own” any real es-tate. There are NO benefits to owning real estate in your own personal name…only risks. If you use a Land Trust you will still receive all the same tax benefits, etc. So, if you are feeling insecure and doubtful about owning investment real estate please consider a Land Trust. To reduce the

risk of owning real estate and increase your feelings of security, use a Land Trust. You (and your family) will be glad you did.

It is difficult to convey all of the benefits of using a Land Trust in a short article like this. I have been using (and writing about) Land Trusts for the last 37 years.

If you would like to learn more about how to create your own Land Trusts, for FREE training go to: www.landtrustwebinar.com/411 or email me at: [email protected] for my FREE booklet, “50 Reasons to Use a Land Trust” or contact me the old fashioned way by calling 866-696-7347 (I actually answer my own phone!) Randy Hughes, aka, Mr. Land Trust™

(And how a Land Trust can help us find it)

land trust

Why do We Seek Security?

“As real estate investors we THINK differently than the average citizen.”


By Randy Hughes, “Mr. Land Trust”

family homes. While there are many investors that specialize in residential real estate, there are also ways to profit in commercial land and buildings.

Residential real estate has some obvious advantages. There is more demand for residential homes; and therefore, it is easier to find properties that may fit your investing profile. Investing in a single home is also more affordable as the price point for a residential property is generally less than the investment in a commercial property. Luba Muzichenko writes, “Probate sales are ‘as is’ sales, and... the estate does not have to disclose anything about the property. Does that mean you have to make an offer on the place blindly? Not a chance! You have every right to fully inspect the property. Bring a contractor, bring a friend, bring an architect, bring your mother! It doesn’t make a difference who you bring, just be sure to bring them BEFORE you write your offer. Also, one thing to keep in mind... with your offer, you will have to submit a cashier’s check for 10% of your offer price, payable to the estate.”

There are cases where you can have the property professionally inspected. Everything depends on the laws of the state that you are working in, the terms of the probate and the desires of the court. As you are learning the probate business, take the time to find a mentor who can help you to understand the process of a probate sale. Part of that process is the submission of earnest money. This deposit is traditional in any real estate transaction and applies to both residential and commercial real estate. The amounts in commer-cial real estate would obviously be higher due to the increased purchase price.

While some investors focus on residential real estate, there are options in commercial properties as well. In fact, one of the most profitable areas in probate is working with commercial real estate. The researchers at Inc., said, “Buying commercial real estate is a complex undertaking that is difficult

even for experts to time right to maxi-mize their investment value, let alone entrepreneurs or business executives whose areas of expertise are in different industries. It’s also a venture rife with risk, as buyers, sellers, agents, and rent-ers alike can suffer the consequences of a dip or spike in demand. At the same time, for a business, on the upside the potential rewards can be substantial.” If you are interested in a “substantial” reward, as the authors indicate, then commercial might be for you.

What kind of commercial properties might you find in a probate? If an indi-vidual owned a business or was a real estate investor and held them personally, then the properties may end up as part of the estate that is being handled by the court. These properties may include everything from apartment buildings to undeveloped land, strip centers, office buildings, stores, restaurants, ware-houses, industrial properties, doctor’s offices and medical facilities to malls and hotels. There is a wide variety of buildings that are considered commer-cial property with an equally wide range of pricing. Each of these properties has advantages to the investor depending on what your long term goal might be.

One of the best advantages in busi-ness property is the increased income potential that is present in commercial real estate. Matt Larson said, “The best reason to invest in commercial over res-idential rentals is the earning potential. Commercial properties generally have an annual return off the purchase price between 6% and 12%, depending on the area, which is a much higher range than typically exists for single family home properties (1% to 4% at best).”

Knowing that there are both residen-tial and commercial options in pro-bate real estate investing is one thing. Finding them is something completely different.

HOW TO FIND OPTIONS Probate real estate investors have dis-

covered that there are key ways to find out about residential and commercial options. Here are a few of the ways: • USE A LEAD SERVICE. There are

professional services that are available that can give you the information you need in order to pursue properties in probate. While you could go to the courthouse yourself and look through documents to try to identify which leads are worth pursuing, you can save yourself a lot of time and frustration by having a lead service deliver that information right to your email. These services are both economical and help-ful in that they provide information you might not otherwise find on your own. • REAL ESTATE AGENTS. You can work with a real estate agent in order to find a residential or commer-cial property. Said Muzichenko, “Most probate sales end up listed in the Mul-tiple Listing Service (MLS), but those that don’t are listed on the BlueSheet, which can be found at the California Superior Court in San Francisco. Of course, if you are a buyer working with a REALTOR® that knows you are interested in probate property, your REALTOR® will do the searching for you.” • CONTACT PROFESSIONALS IN THE FIELD. As your business develops, you may want to work with local estate attorneys or accountants. They would have firsthand knowledge about properties that may become available due to a change in family sta-tus. Building a relationship with them and offering them a finder’s fee can be a great way to add to your portfolio.

THE BEST WAYS TOFOLLOW UP

Once you do find a property that you are interested in pursuing, the next step is to follow up. Generally, probate investors have found that a professional letter directed to the Executor is a good way to start the conversation.

There are several critical compo-nents to your communications with an Executor. A short introduction of who you are and why you are contacting them is a good way to start. Adding information about what you do and how you can help them may spark some interest. Inserting a comment about how you found their information,


Commercial Probate Options, pg. 25

such as, “Your property was listed as part of a search I was doing through public court documents,” will help them to understand that you are simply contacting them to see if they are interested in selling their home or commercial property. Make sure to add in all of your contact informa-tion, including your email, website address and cell phone number so that they can reply to your letter.

Understand that an Executor may not contact you after one mailing. Plan to follow up every thirty to forty five days for a period of about six months. These repeated mailings to residential and commercial Ex-ecutors will help establish you as a serious investor and will be respect-ful of the many steps that these ad-ministrators have to take to close an estate. When someone does reply to a mailing, call them back right away. Once they have made contact, they are clearly ready to have a conversa-tion, so promptness is key.

Finding the best options in resi-dential and commercial probate real estate is a blend of knowing what you are looking for and reaching out into the community. While residen-tial real estate may have a lower sale price, it may also not yield the same rents and income that a commercial property might. Take this into con-sideration when deciding about your next property. v

For more personalized advice, call the team at US Probate Leads. We offer a professional lead service that can get you the most up-to-date, viable leads for the counties that you work in and provide additional support. We offer a wide range of tools that includes communications software, ebooks, webinars, seminars and even an individualized mentor-ing program. When you are ready to take your business to the next level, call (877) 470-9751. We can give you more information on how we can help you build your probate real estate business. Realty411Guide.com PAGE 49 • 2015 reWEALTHmag.com

A Lesson In REAL ESTATE Syndicationsby Tom K Wilson

WHAT IS A REAL ESTATE SYNDICATION?

eal estate syndicat-ing is crowdfunding before crowdfunding for real estate ever was a term. Basically, both syndicating and crowdfunding are the pooling of capital with other individuals for a common purpose or a common goal. In

real estate, that common purpose is the purchase of a real property of any kind, including multifamily residential, or commercial such as retail, office, medical, industrial, warehousing and more.

In it’s simplest traditional example, a chef wants to have a restaurant and has the experience and willingness to put in the sweat equity but hasn’t sufficient money. He then finds a partner who has no experience or desire to run the business but has the money and desire to reap the benifits of ownership. A formal professional syndication reflects the same intent on a larger scale with more players. It indeed is generally a synergistic win/win relationship.

WHY DO PEOPLE INVESTIN REAL ESTATE SYNDICATIONS?Most investors do not have the time, knowledge, or experience to search hundreds of properties to find a gem to acquire and under-write. But there are real estate companies who do this for a living. By getting involved through a good real estate syndication, investors have access to larger and higher quality investments than they could on their own and gain the ability to invest in real estate without the

burden of acquisition, operations, and disposition. One gets the expertise, management and borrowing power of a team of proven experts.

WHO IS INVOLVED WITH A REAL ESTATE SYNDICATION?The first ingredient for a real estate syndication is a “syndi-cator” (also called “sponsor” or “promoter”). This individual or company is in charge of finding, acquiring and managing the real estate. They have a history of real estate experience and the ability to underwrite and perform the due diligence on the real estate. The other party is the investors. These are the individuals who invest with the syndicator and own a percent-age of the real estate as a result. They get all the benefits of property ownership, but they are not involved with acquiring the property, arranging financing (if there is a loan on the prop-erty), doing the day-to-day management or disposition at the end of the hold period. Professional management is crucial to successful commercial or multifamily ownership and is usually

provided by the syndication.

WHAT IS THE PROCESS OF A SYNDICATION?There are many moving parts to a commer-cial or multifamily acquisition, opera-tion, and disposition. In a multifamily or commercial syndication the due diligence and loan process steps are enough to choke a horse. Hundreds of hours are generally invested by the syndicator and his team to secure the product including the research and projections for the regional market economics, the specific product business, the demographics, many inspections, and bids for any improvements. Then there is the legal process and finding the best loan source and terms along with the extensive application and qualification. It makes

Realty411Guide.com PAGE 29 • 2012 reWEALTHmag.com Realty411Guide.com PAGE 28 • 2012 reWEALTHmag.com

I don’t recommend being a real estate investor…un-less you have a well-de-fined strategy, quantitative

goals and are dedicated to go by the numbers and not by unsup-ported advice or emotions.

My engineering training and 30 years of experience manag-ing high tech profit centers in Silicon Valley taught me how to analyze for the best return on investment in any mar-ket.

Today, the principles of analysis remain the same. Anyone can do it, however, one needs to be very disciplined and educated about the submarkets and products, or ride the coattails of someone who is.

The primary parameters for selecting the best investment markets are:•Rent to purchase price ratio•Population growth and inward migration•Employment growth and business climate•Housing affordability•Location•Cost of living•Rental market•Current and projected market conditions

Now that speculative investing for fast profit has gone the way of the last super-model, the wise investor is focused on cash flowing assets and safe harbors.

Are there markets that have weathered the down-turn well, are superior in many of the parameters above, and have had rela-tively calmer waters dur-ing these past few tumulus years? Indeed, my experience in more than 1800 unit transactions over 35 years

has revealed that Dallas / Fort Worth is one of the best real estate investment markets in the United States; that is why I chose it for most of my personal portfolio long term holdings.The strengths of Dallas / Ft. Worth are:•Business and financial capital of the South. •The highest rent per invested dollar for a major economic center in the United States, and therefore, the highest cash flow•One of the lowest risk and safest harbors in the United States for real estate•Lowest decline housing price from peak; the only US single digit depreciation met-ro•Fourth largest and one of the fastest grow-ing MSAs (Metropolitan Statistical Area) in the United States. Projected to double population to 12 million by 2030•Broad-based economy that has had double the employment rate growth of the United States during the past decade

•No. 1 ranked business cli-mate in the United States•No state in-come tax• L e a d i n g MSA for cor-porate head-quarter relo-cations and expansions•Second lead-ing MSA in US for For-tune 500 cor-

porate revenue•Most affordable housing of top 20 cities ($116,000 median Q3 2011)•Central location in the United States at-tracts companies desiring time zone and distribution competitive advantages•DFW airport is the third busiest in the world•One of lowest cost of living major MSA’s, yet above average household income•Highest millionaire growth rate in the United States•Strong rental market (95% occupancy Q4 2011 for single family homes)•Very landlord friendly

Yes, the national economy crisis has affected even DFW, but not significantly compared to other MSAs. Texas is the sec-ond most populous state, so there are in-deed many home foreclosures, especially since there is such low housing costs and consequently a high percentage of govern-ment backed loans, but in spite of this, the Texas delinquency and foreclosure rate is relatively low compared to other states. I believe that these factors are another strong indicator of whether a metro has hit bottom yet, and that many cities and states have farther to go, so selecting the lowest risk metro is as important as seeking high current cash flow.

During the last two decades the appreci-ation average was about 5% per year. With a 5 to 1 leverage with 80% loans investors got a 25% return on their down payments in addition to the high cash flow. Histori-cally, the last economies to slow down, are the first to go back up.

I don’t know when DFW will start ap-preciating significantly again, but I believe it will be before many other areas, and our window of opportunity to invest optimally in any leading area may be shorter than we think.

In this economy I prefer to invest in homes over commercial and multifamily products because homes have more liquid-ity, are generally lower risk, appreciate faster, and one can build a “mutual fund” by buying in various neighborhoods rather

than putting a lot of eggs in one address. Even in a good region, one must be very careful though in selecting the right product, neighborhood and professional service and management team. Make sure you rely on resourc-es that have a lot of investment experience in that region.

If I’ve learned anything in investing, it is that variations

Why Dallas / Ft. Worth is One of the Best Metros in the US

in performance from the me-dian can vary tremendously in any general geographical area, and only experienced profes-sionals can help you minimize that risk. I believe that the wise will not wait and see, but act to grasp the best opportunities of our lifetime before they are gone.

by Tom Wilson

Tom Wilson

Dallas / Ft. Worth Education Field Trip, May 4-6, 2012

Multiple Speakers including Dallas Chamber, Property Managers, Product Suppliers, Lenders & 3rd Party Investment Experts

site in one concise action and value packed weekend is a different experience indeed.This event is sponsored by The Real Estate Guys. It will sell out.

For more information and a special discount offer visit www.tomwilsonproperties.com or call 408.867.1867

Parachuting surely is a dif-ferent experience than

reading about it! Dallas Ft.Worth is a much

sought after real estate in-vestment city that you can read about, however, seeing it, having multiple experts teaching you, touring you, and being available to an-swer all of your questions on




PROFILE OF YOUR FUTURE PORTFOLIO





Price $139,000Rent $1,395

Year Built 20014 Bed 2.5 Baths

Mention Realty411 or reWEALTH and receive a discount on the May 4-6 DFW Field Trip. Don’t Miss It!

Las Vegas Worst Dallas Best









THREE SYNDICATION COMPONENTS

1) ORIGINATION: planning, due diligence, acquiring prop-erty, satisfying registration and disclosure rules, and raising the capital for the investment.

2) OPERATION: the sponsor usually has the expertise to op-timally manage the property.

3) LIQUIDATION OR DISPOSI-TION: resale of the property at the end of the hold period.


>

a home loan look like a visa charge at the convenience store.

And that is just the starting point. Once the property is purchased, optimum professional property management, both the strategic and the day-to day-operations, is critical to maximum the returns for the investors. This can make or break the projections.

When it is time to sell, the syndicator has excellent knowledge of the market in that region for that type of product and can maximize the sell price and terms. Having a syndicator who can synergize all of these parts increases the return/risk ratio.

REAL ESTATE SYNDICATION ORGANIZATIONAL FORMSSelecting the form of organization involves practical as well as legal and tax considerations. Each of the avail-able entities has advantages and disadvantages. The LLC and LP are the most commonly utilized entities used for syndications today.

Dictionary.com: Syndicate: “[n. sin-di-kit; v. sin-di-keyt] A group of individuals or organizations combined or making a joint effort to undertake some specific duty or carry out specific transactions or negotia-tions”.

Recently to my surprise one of my ra-dio listeners asked me if syndications were legal. I said that the way I do it and most syndicators as well, it in-deed is. In fact, a high percentage of large real estate investment ventures are syndications.

The term syndication has no legal significance. The responsibility, obliga-tion and relationship of the syndicator

to the investment group and the investors to each other are determined by the form of organization. Anyone or any entity can syndicate a deal, and yes, so can gangsters, which is apparently the basis of my listener’s concern. Yes, you do need to be careful with whom you team and invest with.

SYNDICATION BY THE NUMBERS• Real Estate syndication statistics in US 50,000 syndication investors per year• $2,300,000 average syndication value• 5-9% typical preferred returns• 3-10% property management operating fees• 1-10 years range of ownership

ADVANTAGES OF SYNDICATIONS* Enables an investor to participate in larger and higher quality investments.* Utilizes the syndicator’s ability to find the best products at the best value.* Utilizes the syndicator’s ability to get the best loans including non-recourse.* Reduces the investor’s risk.* Distributes the investment risk.* Utilizes the syndicate’s ability and experience to manage the acquisition and product throughout the investment hold period.* Liability limited to the investors contribution.* Easier for an investor to get into a non-local market.

Tom Wilson is a 37-year real estate veteran who has executed over $100M and 2,000 units of real estate investments. Wilson is also a weekly host of the Real Estate 360 Radio program on KDOW 1220 am every Wednesday at 2 pm. Listen to his podcasts on iTunes or his website: http://tomwilsonproperties.com

Realty411Guide.com PAGE 29 • 2012 reWEALTHmag.com Realty411Guide.com PAGE 28 • 2012 reWEALTHmag.com

I don’t recommend being a real estate investor…un-less you have a well-de-fined strategy, quantitative

goals and are dedicated to go by the numbers and not by unsup-ported advice or emotions.

My engineering training and 30 years of experience manag-ing high tech profit centers in Silicon Valley taught me how to analyze for the best return on investment in any mar-ket.

Today, the principles of analysis remain the same. Anyone can do it, however, one needs to be very disciplined and educated about the submarkets and products, or ride the coattails of someone who is.

The primary parameters for selecting the best investment markets are:•Rent to purchase price ratio•Population growth and inward migration•Employment growth and business climate•Housing affordability•Location•Cost of living•Rental market•Current and projected market conditions

Now that speculative investing for fast profit has gone the way of the last super-model, the wise investor is focused on cash flowing assets and safe harbors.

Are there markets that have weathered the down-turn well, are superior in many of the parameters above, and have had rela-tively calmer waters dur-ing these past few tumulus years? Indeed, my experience in more than 1800 unit transactions over 35 years

has revealed that Dallas / Fort Worth is one of the best real estate investment markets in the United States; that is why I chose it for most of my personal portfolio long term holdings.The strengths of Dallas / Ft. Worth are:•Business and financial capital of the South. •The highest rent per invested dollar for a major economic center in the United States, and therefore, the highest cash flow•One of the lowest risk and safest harbors in the United States for real estate•Lowest decline housing price from peak; the only US single digit depreciation met-ro•Fourth largest and one of the fastest grow-ing MSAs (Metropolitan Statistical Area) in the United States. Projected to double population to 12 million by 2030•Broad-based economy that has had double the employment rate growth of the United States during the past decade

•No. 1 ranked business cli-mate in the United States•No state in-come tax• L e a d i n g MSA for cor-porate head-quarter relo-cations and expansions•Second lead-ing MSA in US for For-tune 500 cor-

porate revenue•Most affordable housing of top 20 cities ($116,000 median Q3 2011)•Central location in the United States at-tracts companies desiring time zone and distribution competitive advantages•DFW airport is the third busiest in the world•One of lowest cost of living major MSA’s, yet above average household income•Highest millionaire growth rate in the United States•Strong rental market (95% occupancy Q4 2011 for single family homes)•Very landlord friendly

Yes, the national economy crisis has affected even DFW, but not significantly compared to other MSAs. Texas is the sec-ond most populous state, so there are in-deed many home foreclosures, especially since there is such low housing costs and consequently a high percentage of govern-ment backed loans, but in spite of this, the Texas delinquency and foreclosure rate is relatively low compared to other states. I believe that these factors are another strong indicator of whether a metro has hit bottom yet, and that many cities and states have farther to go, so selecting the lowest risk metro is as important as seeking high current cash flow.

During the last two decades the appreci-ation average was about 5% per year. With a 5 to 1 leverage with 80% loans investors got a 25% return on their down payments in addition to the high cash flow. Histori-cally, the last economies to slow down, are the first to go back up.

I don’t know when DFW will start ap-preciating significantly again, but I believe it will be before many other areas, and our window of opportunity to invest optimally in any leading area may be shorter than we think.

In this economy I prefer to invest in homes over commercial and multifamily products because homes have more liquid-ity, are generally lower risk, appreciate faster, and one can build a “mutual fund” by buying in various neighborhoods rather

than putting a lot of eggs in one address. Even in a good region, one must be very careful though in selecting the right product, neighborhood and professional service and management team. Make sure you rely on resourc-es that have a lot of investment experience in that region.

If I’ve learned anything in investing, it is that variations

Why Dallas / Ft. Worth is One of the Best Metros in the US

in performance from the me-dian can vary tremendously in any general geographical area, and only experienced profes-sionals can help you minimize that risk. I believe that the wise will not wait and see, but act to grasp the best opportunities of our lifetime before they are gone.

by Tom Wilson

Tom Wilson

Dallas / Ft. Worth Education Field Trip, May 4-6, 2012

Multiple Speakers including Dallas Chamber, Property Managers, Product Suppliers, Lenders & 3rd Party Investment Experts

site in one concise action and value packed weekend is a different experience indeed.This event is sponsored by The Real Estate Guys. It will sell out.

For more information and a special discount offer visit www.tomwilsonproperties.com or call 408.867.1867

Parachuting surely is a dif-ferent experience than

reading about it! Dallas Ft.Worth is a much

sought after real estate in-vestment city that you can read about, however, seeing it, having multiple experts teaching you, touring you, and being available to an-swer all of your questions on









Price $139,000Rent $1,395

Year Built 20014 Bed 2.5 Baths

Mention Realty411 or reWEALTH and receive a discount on the May 4-6 DFW Field Trip. Don’t Miss It!

Las Vegas Worst Dallas Best










Why Having a CAT is More Work than a Self-Directed IRA

nose against my face to ask for breakfast. The whisker tickles seal the deal.

All fed, he hops up to the bathroom sink to ask me to turn on the tap. He’s thirsty. Then he gives me that look when he’s quenched: “I want my head rubbed NOW, please.”

For some relief from all this, I let Spotty out in the backyard. He triumphantly trots back in 10 min-utes later to bring me a dead bird he found outside. Then I get the job of cleaning up after him.

And that’s just one morning. Spotty’s capers continue ‘round the clock. Day after day. Week after week. Month after month. Year after year. ARE YOU UP FOR IT? NOT EVERYONE IS. The good news is managing a self-directed IRA (SDIRA) is less work than caring for a cat. And less expensive, if you do it right. In fact, most of the time

the investment is up-front, in the first month. That’s when we ask you a lot of questions about where your money currently is (to help you transfer it) and the deal(s) you want to invest in (to feel out whether they’ll pass

compliance). Yes, the process can get a

little frustrating for that short while. It ends up being only a few hours in total though,

with us guiding you through every step.

SO ASK YOURSELF: How worthwhile is investing a few hours now to tax-shelter your real estate and non-Wall Street investments for years to come?

At uDirect, we don’t charge you a per-centage of your assets like some of the other guys. It’s one low, flat fee per year.

Of course, you also need to always follow the IRS’ rules to steer clear of “prohibited transactions” once you’re investing. You could owe penalties on your whole IRA if you break those rules.

To help prevent that, we can refer you to some great tax lawyers, CPAs, and even funding sources who understand SDIRAs – and who specialize in real estate. I’ve personally known these people for years and worked with many of them on my own real estate deals. None of them pay us a penny for the referrals either.

So if a few rounds of info gathering and monitoring your own investments don’t scare you, then you may have the right stuff to be-come a uDirect IRA Services account holder.

To apply for an account today, just call us at (866) 447-6598 or email us at [email protected] to schedule your free 20-minute consultation. Your cat will appreciate your wise planning.

Do you know a proud parent of a kitty? It takes a special breed

of person (like me). So even if you’re not a cat person, here’s the “fun” you’re miss-ing out on...

Like it or not, my day starts at 5:00 am on the nose. Literally. That’s when my 12-year-old short-gray-haired tabby, Spotty, jumps in my bed to press his cold


By Kaaren Hall, uDirect IRA Services, LLC

#LIVETHELIFEWhen you’re a top-producing real estate pro, luxury has no limits. This doesn’t just apply to magnificent estates, and skyscraping multisto-ry penthouses; it means having an equally rich ride too… Forget Uber and Lyft, who needs an Apple, Google or Audi driverless car when you can afford your own driver. Or have an exhilarating, adrenaline on-demand Mercedes Benz that you want to be seen in. Experience hyper-productivity in your Maybach mobile office. Bring-ing a whole new meaning to ‘mobile closings’, and ‘driving for dollars’, this is the hyper-connected mobile office that allows the legends of the indus-try to spot and close deals on the go.

styleBY TIM HOUGHTEN


#LIVETHELIFE

According to the National Association of REALTORS® (NAR), the average agent spent more on their vehicle than online marketing and their website last year. And, why not? The Maybach is a mobile marketing, mon-ey-making machine on wheels, one that will ensure you are never mistaken for being average again.

SLEEP, EAT & CELEBRATE WITH CASH FLOW ON THE GO

Recently our media team met up with Lexani Motorcars at the recent luxury car show in Naples, FL. While the interiors of these supreme vehicles offer cabins rivaling billion dollar yachts, or resemble mobile command centers, the exterior of the Sen-tinel VIP designed in coordination with the International Armored Group ensures you’ll never come up short, or have a worry when

#LIVETHELIFE

#LIF

ETH

ELIF

E

collecting rent. In addition to the custom business stations, video conferencing, May-bach ceilings, and 25k gold custom accents, the exterior of the Sentinel VIP presents a formidable armored vehicle complete with firing hatches and a turret. No zombie is going to stop you from getting that cash flow in this.

WHEELS TO WATCH Aside from the new self-piloting Audi A7, and Apple iCar, the new Mercedes Benz G-Code sports utility coupe is sure to warp drive real estate entrepreneurs into the future. When available, the G-Code, which generates both solar and wind energy, is sure to rival Tesla’s latest designs for the conscientious real estate power broker or investment master. What are you driving? v


#LIVETHELIFE

One Size Does Not Fit All Are you sick and tired of being sick and tired? Feeling lost and confused in this chaotic self-help wellness explosion with countless fad diets, magic potions, lotions and pills?Does your doctor tell you that your discomforts and extra fat buildup are all just because you’re getting older? Did you know that standard medical exams miss 95% of what’s really going on in your body and that they are only designed to detect extreme metabolic disturbances – not the little chemical upsets which left unchecked could develop into big medical crises later? Did you know that the number one cause of premature death is “from the side-effect com-plications of correctly prescribed medications interacting and compounding over time?”

And, that 66% of those on supplements are taking the wrong ones and making incorrect food choices?

It is a fact that over 98% of Americans miserably flunk nutrition and toxin tests, which is worse than any other country. Sadly, the U.S. is now ranked by the World Health Organization as 39th in the world for life expectancy as compared to ranking 5th in 1969! The U.S. also has the most nutrition-related disorders with foods that are devoid of valuable nutrients, polluted, genetically and synthetical-ly denatured. We have too many confused “self-helpers” becoming vegetarians when they are genetically designed to thrive on more animal products and vice versa.

Which exact foods are the right ones for our individual bodies? Darwin’s principle of Survival of the Fittest states that we are severely weakened when we eat food that is incompatible with our unique genetic/metabolic design. For instance, Eskimos who are genetically carnivores cannot eat like East Indian Hindus who are vegetarians, and vice versa. Food by food, nutrient by nutrient, the secret is to find out exactly what is right for your genes for the healthiest, lon-gest life possible.

After all, scientific authorities agree that all disease is diet and/or lifestyle related. “The solution to all illness can be found in nutrition” (USDA’s report #2, Benefits from Nutri-tion Research) by using specific foods and supplements pre-cisely matched to your unique biochemistry -- the complete

opposite of our one-size-fits-all world. Using this individualiza-tion process by making environ-mental choices that are true to your genes can increase life ex-pectancy to 166 years (UCLA’s Biosphere’s studies). Would you like to know what diseases are un-symptomatically “brewing” inside you and how to stop them before they really become a problem? Well stop guessing about what your body needs. Let’s scientifically DETECT and CORRECT the root cause of all degenera-tive disease, fatness, fatigue, premature aging symptoms, etc., and fix it once and for all! Uncover hidden disease tendencies before they turn into crises while detecting and eliminating deadly toxins like Mercury and Uranium, which are commonly found in people. Know your best and worst foods along with a laboratory designed supplement program designed for YOUR body only.

Find out what type of Slow, Fast or Stressed Metabolism you have and how to make it dramatically more efficient by improving digestion, absorption, cellular utilization and waste elimination. Reduce the need for drug dependence and side-effect complications. Experience improvement in the quality and quantity of life while energy soars and fatness diminishes. Remember, all disease is diet-related and the U.S. is suffering from an epidemic of degenerative disease because not enough people are using this nutrient management technology to balance their body chemistry.

The Personalized Nutrition Consultants (PNC) utilizes medically-proven technologies to design a precise nutri-tional program for your unique body chemistry. “Nutri-tion only works when you put it into the context of your one-of-a-kind body.” There is NO MORE GUESSWORK or ONE-SIZE-FITS-ALL nutrition confusion with PNC’s bio-corrective program.

Save time and money with this low cost, highly conve-nient, affordable program, which is DONE IN THE COM-FORT OF OUR OWN HOME. No office visits required. A 15 to 30+ page report, depending on what our laboratory

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Realty411Guide.com PAGE 58 • 2015 reWEALTHmag.com>

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Lori Greymont, pg. 29


fearful of the econo-my, we were invest-ing in homes, re-pairing them, hiring people, buying sup-plies, selling them to investors and improving neigh-borhoods, impacting communities in a positive way.

Linda: Have you made any poor in-vestment decisions? If so, how would you have done things differently? Lori: Of course! I always say a sign of an expert is someone who has made a mistake and stayed in the game. The saying is, “If you fall off the horse get back on.” There is good value in that because you learned something in that process. Why not apply what you learned? The biggest mistake I made was buying a 40-acre parcel of land with the expecta-tion of appreciation. The reason it was a mistake is because land doesn’t generate income. We had a seller carry the mort-gage, so we had expenses, no income and decreasing value. Needless to say, we forfeited it back to the owners, causing myself and others to lose our down pay-ment money. The lesson to learn in this is real estate doesn’t always go up and you should buy on the fundamentals of cash flow. Any-thing else is gambling.

Linda: Why is your company different?Lori: What really makes us different at Summit is our ability to work hand-in-hand with real estate investors to identify a concrete strategy and plan to reach their investment objectives with dependable passive income. We find that most want to retire, put their kids through college, get freedom from their day job, or maximize their performing assets, but they don’t have a road map on how to do it. It’s like they want to go from the East Coast to

the West Coast and they know they need to drive west but they don’t know what highways to use and they have no idea how long it’s going to take. We coach the clients that want to partic-ipate actively in their wealth creation, but the truth is that we find that most people want to sim-ply add the creation in a passive man-ner building for the future. You will notice I didn’t say anything about goals.

What we do is much more strategic, much more profound. There is a beginning, a middle, and an end. We come up with an acquisition plan, a holding period, and most importantly, an exit strategy. For each investor we create a customized strat-egy unique to their objectives. This plan works for investors who want to replace their income now actively participating in real estate or those who want to build a future plan for themselves or their legacy. We create the right strategy, find the right properties in the right markets in the right neighborhoods to execute their per-sonalized strategy. We even find property managers and in most cases put tenants in place. This allows our clients to execute their plan with little impact on other as-pects of their busy lives. While we believe in having a local team support your investments, we also believe that the holding period is where your success is created. For this reason we use our clout to intervene if any issues come up after a property is owned and rented. Bottom line, our clients trust us be-cause of our experience and our excellent track record of delivering high returns

and being there for them from start to finish. We help them identify a strategy and execute it whether it is to participate actively in their investing or a “done for you” turn-key solution.

Linda: What are your plans for 2015?Lori: My passion this year is to help investors achieve the success they de-serve. While I was caring for my mom, I took the time to write a book, Live Like A King, Think Like A Farmer – 10 Simple Steps to Make Millions in Real Estate. The purpose of this book is to help get the message out to everyone that making money in real estate is sim-ple and achievable. You can create the lifestyle you want by following the sow and harvest principles of a farmer. This is an instructional hands-on book that will walk someone through the steps of creating wealth in real estate. It is easily digestible for the new investor while containing plenty of sage wisdom for the experienced investor. Make sure to visit www.livelikeakingbook.com to register for more information about obtaining your copy of this book. Along with this book, we will con-tinue to educate with our radio show, Real Estate Radio Live on AM 1220, the Wall Street Business Network. Our team member, Charlie Castro will host the show. He takes his time to finding rele-vant market experts and topics to discuss. Definitely worth your time! This plays live on Thursdays from 3 to 4 pm PST or it can be heard in replay on our website. We are actively monitoring and open-ing new markets that meet our criteria for solid cash flow investments for our in-vestors. Additionally, as the single family housing market recovery matures we are seeing more opportunities in commer-cial, syndication and development that benefit our investors. For us, it’s about supporting investors who want to get solid passive cash flow from real estate investments. Lastly, as a passion project I have created an all-women’s mastermind group called The Impact Circle, for investors and business owners that are ready to positively impact their futures. This group brings women business own-ers together to catapult each other to success with power, passion and purpose.For more information about this group visit online: www.theimpactcircle.com

5 TIPS FROM LORI GREYMONT It used to be location, location, location, but I have found that

there are really 5 keys to successful investing. They are:

1. Market Timing — you need to un-derstand where in the real estate cy-cle your market is.2. Your Plan — invest in what meets your goals, don’t follow what every-one else is doing.3. Location — this is important in re-gards to picking a marketplace that has a strong economy and a neighbor-hood that meets your investor goals.4. Team — this is probably the most important component with long-term holds, 90% of your success is based on how well you select and manage your tenant.5. Numbers — it’s critical to know what the real numbers are and to make sure they meet your goals.

REI WEALTH MONTHLYFor nearly two years, REI Wealth Monthly has been delivering vital industry news. REI Wealth Monthly, which is co-owned by Realty411, is the ONLY monthly publication catering to investors!

www.REIWEALTHmag.com

Lately, I am sure you have heard the word solar mentioned often. With the rising costs of electricity (raised at least once per year), it isn’t a surprise that more and more interests in the solar industry

are trending on Twitter and Google search feeds. This past summer homeowners with non-solar homes reported their outrage and concern due to their electricity bills pouring into the $200-$600 range. And it’s only going up. Energy efficient and alternative energy homes are now being manufactured by developers looking to get ahead of the curve on the ever-booming industry. “Why buy the house that doesn’t have solar on it when I can buy one that comes with it, installed and ready to use when I move into my new home?” When presented with the option of solar or no solar — this was the most common surveyed response for home buyers in 2014. And it’s true. If a home-buyer does not buy a home with solar on it, the odds of them getting it installed after the fact, are especially high in inland areas and areas where there are larger cooling and heating consumptions. This essentially presents a great opportunity for REAL-TORS® and investors. Investors are quickly realizing the

capital gain from their solar investments. With a very small percentage of homes (under 5% nationwide) having solar, there are still government incentives in place to incentivize property owners to help alleviate the dependency on fossil fuel by incorporating renewable energy.

SOLAR - How REALTORS® andInvestors Use it to Their Advantage

Continued on pg. 66


Wanna be a big boy?

Now is the time to put your big boy (or big girl) shoes on and grow your business model up.

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Now is the time to put your big boy (or big girl) shoes on and grow your business model up. Do you, like many brokers, spend most of your time looking for a lending source? Are you chasing bad deals because you don’t know they‘re bad? Don't settle for being good at what you do, be the best by attending Pitbull’s next National Hard Money Conference, June 12th in Fort Lauderdale. Presentations by seasoned lenders, brokers and service pro-viders will give you the invaluable insight needed to cut your learning curve in half. And if you already know a thing or two about hard money, there are still plenty of reasons to attend. Participate in our “Bring Your Deal” segment, where attendees are allowed to present a deal to the entire house. Deals happen. Network with investors, lenders, and vendors. Discover the advantages of becoming the bank, which allows you to dictate points and spreads yourself. Sound daunting? It’s not. Sound liberating? It is. So, be a big boy or girl and grow your business model up. See you in Florida!

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PROPERTY TYPESSingle-Family Residences2-4 Family Units • CondosTownhomes • Apartments

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Residential real estate investors aren’t used to having easy options for financing, re-financing and unlocking equity from their rental properties. Until now.

At B2R Finance, residential rental mortgages are all we do. That means we’re committed to finding faster, easier and smarter options for you. For example, we provide blanket loans allowing you to eliminate multiple mortgages and “package” several properties into a single loan. We also make asset-based loans that consider the cash flow of your rental property rather than your personal debt-to-income ratio.

In short, we provide innovative solutions that are tailor- made for real estate investors.

B2R Finance L.P., NMLS ID # 1133465, 1901 Roxborough Road, Suite 110, Charlotte, NC 28211. B2R Finance L.P. is not a residential mortgage lender. B2R Finance L.P. only makes loans with a commercial purpose and is not currently authorized to make such loans in all jurisdictions. Your specific facts and circumstances will determine whether B2R Finance L.P. has the authority to approve loans in your specific jurisdiction. B2R Finance L.P. operates out of several locations, but not all locations conduct business in all jurisdictions. Arizona Mortgage Banker License BK#0926974. Minnesota: This is not an offer to enter into an agreement. Any such offer may only be made in accordance with the requirements of Minn. Stat. §47.206(3), (4). Oregon Mortgage Lender #ML-5283.

855.710.0227 B2Rfinance.com

We’vebeen looking

for a wayto refinance

our rental properties.

B2R was the answer.

Brian EvansInvestorPlano, TX

“B2R walked us through the processand made sure we were

comfortable every step of the way.”- Brian Evans

These incentives are offered on the state and federal level, with many states maxed out already on the state rebates. This has helped to increase solar installations by 40% in the last couple years and with the 30% federal credit dissolving in 2016, it’s no won-der there is a sense of urgency.

INVESTORS HAVE MULTIPLE OPTIONS:

1. BUY AND HOLD #1: Buy the property, purchase (not lease) their solar system for the home. Collect 30% federal credit and move in and enjoy the benefits of their solar system saving them money right away.

2. BUY AND HOLD #2: Buy the property, purchase (not lease) their so-lar system for the home. Collect 30% federal credit and rent out the property. They are the utility provider now, essentially, and can charge their tenant the amount they choose, for the use of the electricity or raise the asking price for the rent to include electricity.

3. BUY AND FLIP: Buy the prop-

erty, flip, and include a solar pv system (purchased not leased) in the renovations. Collect 30% tax credit as the original purchaser of the solar system. List the property for sale and raise the asking price of the home based on the value of the solar system.

INCREASED PROFITS. REALTORS® are starting to realize that the use of solar in their marketing efforts is becoming a useful tool in garnering the attention of potential buyers. It’s possi-ble that most of their homes they have listed do not include solar. But there are REALTORS® staying ahead of the game and instead marketing the option of solar based on how optimal each individual listing is and using this information for their open houses.

WHAT DO THEY STAND TO GAIN?

First off, they have an added tool they use for their sellers and their buyers. Their buyer is likely to get solar at some point for their new home. Now they can find out if the roof space is sufficient, if there is high sun exposure and orientation of the house will determine whether the solar

Solar Advantage, pg. 64

would need to be displayed on the front, side or back of the house. And now due to lenders wanting to make sure they have their foot in the door — specific lenders will allow the homeowner to include solar in the original purchase of their new home.

ONE PAYMENT FOR EVERYTHING.

Secondly, if their seller does not want to pay to have solar installed, they can market the solar option for that particular home, increasing their buying pool. The right solar installer can get you a quick install before the new homeowner even unpacks their boxes. Third, many REALTORS® have stated that by advising their past clients that they now have a connection in the solar indus-try, they have found it to be a great excuse to reconnect again and have even received several referrals from past clients. The REALTOR®is now connected in more than one industry, proving to be a greater asset for buyers and sellers alike. In 2015 if you are a REALTOR® or investor, solar could be your new best friend. v

Nationwide Financing

Up to 75% LTV

Recourse & Non-Recourse

Aquisition Line Available

Up to 30-Year Amoritization

. . . . . . . . . . . . . . . . . . . . . . . .

PROPERTY TYPESSingle-Family Residences2-4 Family Units • CondosTownhomes • Apartments

Mixed-Use

Residential real estate investors aren’t used to having easy options for financing, re-financing and unlocking equity from their rental properties. Until now.

At B2R Finance, residential rental mortgages are all we do. That means we’re committed to finding faster, easier and smarter options for you. For example, we provide blanket loans allowing you to eliminate multiple mortgages and “package” several properties into a single loan. We also make asset-based loans that consider the cash flow of your rental property rather than your personal debt-to-income ratio.

In short, we provide innovative solutions that are tailor- made for real estate investors.

B2R Finance L.P., NMLS ID # 1133465, 1901 Roxborough Road, Suite 110, Charlotte, NC 28211. B2R Finance L.P. is not a residential mortgage lender. B2R Finance L.P. only makes loans with a commercial purpose and is not currently authorized to make such loans in all jurisdictions. Your specific facts and circumstances will determine whether B2R Finance L.P. has the authority to approve loans in your specific jurisdiction. B2R Finance L.P. operates out of several locations, but not all locations conduct business in all jurisdictions. Arizona Mortgage Banker License BK#0926974. Minnesota: This is not an offer to enter into an agreement. Any such offer may only be made in accordance with the requirements of Minn. Stat. §47.206(3), (4). Oregon Mortgage Lender #ML-5283.

855.710.0227 B2Rfinance.com

We’vebeen looking

for a wayto refinance

our rental properties.

B2R was the answer.

Brian EvansInvestorPlano, TX

“B2R walked us through the processand made sure we were

comfortable every step of the way.”- Brian Evans

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