Working with Humans: As you modify your strate- gy and the evaluative param- eters on your programs, the value of your results grows daily. Real estate investors may take a “deep dive” into their transactions and due diligence without spending months or years reading through the fine print. As is always the case with AI and other technology, hu- man advances and technolog- ical evolution augment every investors resource base. • Upgrades a Smart Investment Move? water shut-off valves, and smart home water monitors can detect and prevent leaks, saving you time and money - and preventing water dam- age - in the event of a leaky pipe or connector. Per- haps the biggest about smart bath- rooms, according to Rice, is that the fixtures will look too commercial, like those you’d find in a public restroom. On the contrary, “They’re integrated into a variety of styles with a tiny sensor so it’s not going to look like a commercial sink.” There are smart home options at a variety of price points. For example, that miscon- ception > Continued from :: PG 61 Are Smart- Bathroom

Many potential real-estate investors buy on emotion and won’t ask questions about their operator's ex- perience(s). You must ask questions like these: • Did the operators ever do anything tangible with real estate? • Were they an entrepreneur beforehand? • Do they have personal experience with the type of project they are man- aging? • What kind of financial backing does the project have? • Where is the asset located? In my experience, the right thing to do, profession- ally (for the manager) is to get into an asset that is within an hour's drive from home. Why it matters: Inexperi- enced operators tend to make more mistakes with your investment capital, and man- agers who cannot visit their assets are less likely to notice problems developing. QUESTION #7 ARE THEY OVERPAYING FOR THE ASSET? Of course, your operator may not answer this one directly. It will be up to you to do the detective work on this one. One red flag will be

if the operator is not using any of their own money in the project. If they are not using their own capital, what do they care if they overpay for the asset? Why it matters: If your op- erator has no stake in the deal, they will not really care about the safety of the capital in the deal. That is one of the biggest dangers in the industry. QUESTION #8 HOWMUCH LEVERAGE ARE THEY USING? Leverage has always been referred to as “the juice” on the street. Leverage is good ably trying to use that juice to make a marginal deal look like a home run. This leads to higher prices being paid for properties that may otherwise have cost less than that. Why it matters: It will likely be difficult to sell such an asset in the future, and you may not be able to ever recover your initial investment. QUESTION #9 WHAT OTHER ASSETS DOES YOUR OPERATOR CURRENTLY HAVE? Ask to know the intention of your operator’s crowd- funding exercise: Are they raising money from you to pay off legacy assets that are some- times, but if your operators are using too much of it, they're prob-

not that good, not as desir- able, and not performing that well? Are they paying off their previous bad invest- ments with the new money they have raised from you and others? Why it matters: The an- swers will indicate your po- tential fund manager’s level of expertise and motivations for the project. QUESTION #10 DO THEY HAVE PARTNERS? If yes, do you have a partnership agreement or a document that clearly defines your working relationship? Don’t hesitate to probe your potential operators until you get a satisfactory answer con- cerning this question. What you want to hear: The best-case scenario is a couple of experienced opera- tors working together after a long time off. The last thing you want is a bunch of folks who haven’t worked together before, and husband-and- wife teams are red flags too. • Simplified At Last performance across assets. 3. REDUCE RISK WITH OPTIMAL RETURNS AI programs evaluate performance metrics, data points, and real-time case studies to streamline legal workflow and reduce risk across your investments considering your strategy for generating returns. > Continued from :: PG 30 The Online Paperwork Evolution,

smart showerhead that costs $200 on the low end can cost as much as $6,000 on the high end. Of course, a high-end smart shower comes with full integration of temperature and pres- sure settings, audio and video capabilities, high- tech gadgetry, and other bells and whistles. • > Continued from :: PG 63 5 Strategic Videos that Will Revolutionize Your Real Estate STRATEGIC VIDEO #5: LIST-BUILDING VIDEOS Create a series of videos specifically to build trust and rapport with your audience of potential clients and res- idents. Videos made with a personal touch increase con- versions. People buy from the people they trust, and that trust is built when you relate on an emotion- al level. When looking for a new unit, the poten- tial tenant needs to see something that stands apart from all the noise. Real estate photos are everywhere; set yourself apart with videos of your units their advantages. How to do it: Record reg- ular videos explaining how you handled a problem or created a positive, win-win solution for clients in your real estate business. For ex-

ample, in our business, I doc- ument the “success stories” where we handle difficult situations between tenants and landlords in ways that leave everyone feeling good about the resolution. We also document funny moments in our business, good times with clients and employees, and the “behind-the-scenes” moments when we attend in- dustry events or make public “appearances” on industry

stages, podcasts, or radio.

> Continued from :: PG 28 10 Hard Questions

to Ask Before Investing in a Commercial

DON’T DELAY These five strategic video categories only scratch the surface of what your YouTube channel can do for you. Even if you can only record a video a week it will add up quickly. At this time next year, you will already be at 52 videos. Get started today! •

Partnership Deal by pulling the wool over their investors’ eyes about what vol- ume of investment capital they need. This is not the same as a manager who says forthrightly, “We would prefer $50,000, but we’ve taken eight investors on at $10,000” or “We set our minimum at $10,000.” Why it matters: If the man- agers thought they could get enough investors at $50,000 and have been unable to do so, that may indicate trouble some- where. Ask yourself if (and why) “bigger money” might have walked away from the deal. QUESTION #5 WHERE DOES THE MONEY GO? You’ve heard people say, “Follow the money.” Investors should ask their fund man- agers questions about where their capital is going. Ask your prospective fund manager: • How do I see where my dollar is going? • Where in the capital structure will my invest- ment dollars go? Why it matters: If your prospective fund manager appears clueless about the future location of your in- vestment capital, think twice before you proceed with that investment plan.


84 Lumber


Affinity Loss Prevention Services

85 83

American Association of Private Lenders

Angel Oak Prime Bridge Bronchick Law Firm

Investor Review: 10-11

93 29


DHLC Investments Finance of America

24, 68, Investor Review: 2-3

Investor Review: 12-13

Home Invest Ignite Funding JCap Funding



Investor Review: 4-5

Marketorder Financial

99 23 51 31 87

Memphis Investment Properties

My 1031 Exchange

National Real Estate Insurance Group Norada Real Estate Investments

Patch of Land

Investor Review: 8-9; 89

Private Money Lending Guide Radius Renovation Group Real Property Management

27 17


Recovco Direct

Investor Review: 6-7

Renters Warehouse

53 55 65 59


Secure Pay One Sunset Equity

Think Realty

6, Investor Review: 16 Investor Review: 14-15

Triumph Capital US Probate Leads





96 | think realty magazine :: july 2018

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