INVEST R A Think Real ty Publ icat ion SPONSORED CONTENT
JEFF PEPPERNEY Real Property Management
MATT RODAK Fund That Flip
MARCO SANTARELLI Norada RE Investments
Queen Chantelle Owens with GATax Lien Shares Secrets to a Billion- Dollar Industry
LEE ROGERS RealProtect
JIM HITT American IRA
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The Secret Billion-Dollar Industry
by Chantelle Owens, Georgia Tax Lien
B y far, tax liens are the lowest point of entry into real estate. Between my students, team, and me, we have seen well over 100 properties purchased below $10,000 — all worth at least $40,000-$120, 000 as-is. Tax liens make real estate affordable and real estate investing possible for everyday people. In 2009, I fulfilled my vow and began investing in tax liens. My first tax lien purchase was for a 4-bedroom, 3-bathroom home on a full basement. I paid $2,400 for that property, which was worth $60,000 at the time. It is now worth $180,000 and earns $30,000 per year as a short-term rental. Tax liens helped me create financial freedom and generational wealth in one of the worst financial markets in history. Now, my team and I help others do the same. Tax liens are an investing anomaly—low risk with high yield. So how can you take advantage of the Secret Billion Dollar Industry? Tax liens are basically a debt owed to a local taxing authority, such as a county, for unpaid property taxes. In Georgia, the county is automatically awarded a default judgment for any property taxes owed and not paid in the previous year. The county can then take that judgment and file it with the Clerk of Court where it becomes a FiFa, a legal instrument
through garnishment or levy. The FiFa is then filed in the County Deed Records where it officially becomes a tax lien. And since the county needs money to function, it can now sell the recorded tax lien at public auction to the highest bidder who receives either a tax lien certificate, a tax deed, or a redeemable tax deed depending on the state in which they purchased. While tax lien investing is very lucrative for many investors, it can be an extremely tricky path to follow if you don’t educate yourself properly. We have seen many people on the courthouse steps waste hundreds of thousands of dollars on parcels they thought contained a dwelling, only to find they had purchased a small unusable strip of land next to the property they actually meant to purchase. However, many seasoned investors make the mistake of believing they can transfer their current real estate knowledge and skill set to tax lien investing. This is just not the case. Be sure to properly educate yourself before investing in tax liens. Invest in a mentor or educational platform, like GA Tax Lien Bootcamp. We guide our students step-by step with our proprietary D.D.O.E Method. Not only do we teach new investors, seasoned investors, and real estate agents how to confidently invest in tax liens, we teach them how to compete against the big boys
and win. Although we are located in Georgia, we have many students from across the US that attend our boot camps and use the information gained to invest in other states. We pride ourselves on giving more value than expected which is why our free* and low-cost Introductory GA Tax Lien Bootcamps give a robust amount of information. We cover the why and what of tax liens and even host a mock auction so students can gain insight to the bidding process. Our advanced boot camps cover HOW to safely and confidently invest in tax liens, which includes how to conduct due diligence, how to calculate maximum bid amounts, redemption calculations, property conditions, rehab estimation, neighborhood classification, bidding techniques, and much more. Ultimately, our mission is to help one thousand families be able to take advantage of the Secret Billion Dollar Industry of tax lien investing to create financial freedom and generational wealth. In one of the worst financial markets in history, tax liens helped to create financial freedom for many investors. With the impending downturn, we believe now is the time to put yourself in a position to take advantage of this very lucrative industry. • GATax Lien Bootcamp is here to guide youwhen you’re ready. *Subject to change without notification .
allowing for the collection or enforcement of the judgment
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Insurance for the Real Estate Investor
What We Do:
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As the nation's premier real estate insurance broker, realprotect is the expert in insuring real estate investors. We understand the real estate business and what investors like you look for and need in a comprehensive insurance program. You've built a business out of owning and investing in real estate. Let us help you protect it. We start with an understanding of your properties and design an insurance program that helps you meet your coverage and pricing objectives. We promise that we will work diligently to find the best coverage at the best price for you. Give our process a try and find out why many leading SFR lenders and firms trust realprotect with their insurance and risk management needs.
Ask about customized solutions for: Lenders, Property Managers, Market Places, Investor Groups, and Turnkey Providers!
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800.579.0652 ⋅ www.realprotect.com
California License #0J05796 Norton Agency Insurance, LLC D/B/A Norton Network Insurance Agency LLC in the State of California; Agency License # 0J13180
Real Protection for Your Properties
by Lee Rogers, realprotect
A s the real estate insurance program of Norton Insurance, realprotect is not only comprised of insurance professionals, but is also a real estate firm that has over 200 licensed agents and property managers. realprotect is the expert in insuring real estate investors and understanding the real estate business and what you look for and need in a comprehensive insurance program. You have built a business out of owning and investing in real estate, and realprotect wants to help you protect it. realprotect starts this process by gaining an understanding of your properties, business structure, and operations. Then, realprotect will de- sign an insurance program that helps you meet your coverage and pricing objectives. realprotect promises to work diligently to find the best cover - age at the best price for you – based on your actual needs. realprotect takes risk manage- ment and loss control seriously for every single client. realprotect has
risk management resources to offer you the tools you need to under- stand the risks that you face and has partnered with industry-leading companies to provide you risk con- trol products at discounted rates. At the helm of realprotect is Lee Rogers, President. As an insurance professional that has worked and consulted with different Sin- gle-Family Aggregators, Rogers brings unique value and perspec- tive for investors, fund managers and operations professionals. He and the Aggregation Risk Man- agement Team at realprotect have helped design and implement insurance and risk management strategy that is above and beyond what is being set as an industry standard for insurance structure in Aggregation Portfolios, while keeping costs contained and risk properly manage and transferred. Based in Atlanta, Rogers has unique insight and knowledge of many insurance markets, with direct access to many of the world’s lead-
ing insurance carriers. Rogers has helped develop analytical tools and insurance philosophies that are in line with the true risk exposures that Single-Family Aggregators are fac- ing. He understands that the Aggre- gation Market is unique, and that the insurance industry must be able to adapt to this emerging asset class. Rogers uses his vast experience and innovativeness to focus on building business relationships with prospective clients, marketing products and advising investors on coverage options for their real estate assets – while making sure that his entire team at realprotect provides the same quality experi- ence for each client. Lee Rogers and his team at realprotect work with industry leaders such as lenders, market- places, and property managers and wholesalers to provide them with the protection and service that their hard work deserves. To learn more about realprotect, please visit www.realprotect.com. •
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The real difference in using Real Property Management—optimizing your ROI.
Using the right professional property management firm can help you earn more, not less. As the largest single-family residence management franchise in North America REAL Property Management has more than 30 years of experience doing just that for clients. There are many ways REAL Property Management can help maximize your investment and even help you with ways to monitor financial goals for your real estate. That’s the Real Difference.
Visit www.realpropertymgt.com to learn how Real Property Management can put our experience to work for you, giving you real commitment, real ROI and real peace of mind.
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Each office is independently owned and operated. © 2020 Property Management Business Solutions, LLC.
Real Property Management is the trusted leader in reliable, cost-effective management of residential properties. With local expertise, highly-trained and responsive teams, independently owned and operated Real Property Management franchisees collectively manage tens of thousands of properties for individuals, investors, and institutions throughout North America.
Comprehensive Marketing and Advertising For each day a property is vacant, that’s
Online Reporting Owners maintain control of their property and keep tabs from afar using their own online account, with easy access to updates on property activity, including vacancies, leasing, maintenance, property evaluations and financial reports. Cost-Effective, Reliable Maintenance Relationships with preferred vendors result in discounted equipment and services. Maintenance staff is available 24/7 to handle emergencies and to make sure maintenance is timely, cost-effective and done in a professional manner. Timely Rent Collection Nothing affects cash flow more than late or missing rent payments. In addition to offering incentives for paying rent on time, our collection processes are professional but tough, and we are extremely diligent in collecting rent through a systematic, timely process. Strict and Compliant Evictions Even with careful placement there is occasionally a tenant who needs to be evicted. Our offices are knowledgeable in state and local landlord and tenant laws. If rents are not paid on time, we strive to minimize costs by following the legal steps quickly and efficiently to get the property leased again.
money lost. Professional management costs are easily offset by shorter vacancy. Our advanced planning and heavy advertising gets vacancies filled fast.
Thorough Tenant Screening and Selection
Placing the wrong tenant can quickly cost you more than professional management fees. We make every effort to find tenants who will pay rent on time and take care of the property with the use of criminal, credit, and employment checks. Full-Service Leasing In addition to advertising properties and screening tenants, our full-service leasing process also includes rent-ready guidance, market rent analysis, professional showings, move-in property assessments, and professional tenant education at lease signing. Routine Property Evaluations Regular assessments of both the inside and outside of your rental property ensure tenant compliance with the lease and identifies maintenance needs to preserve your property.
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Engage with Your Property Management Company to Maximize Profit
by Jeff Pepperney, Real Property Management
A s a single-family rental prop- erty investor, you need a team of experts you can trust. That team should include a great property management company. You may start out doing most of your prop- erty management yourself, thinking that you can save money that way. But that kind of thinking may not ultimately help you achieve your investing goals. The fact is that few rental property owners can grow a successful investment portfolio without working closely with a great property management company. By hiring the right professionals for the job, you can break out of that do-it- yourself mentality and work toward truly maximizing each real property investment you make. To make the most of your rental properties, it is important to form a strong relationship with your property management company. Truly engaging with your property management company means more than reading reports and respond- ing to questions. Rather, you should take advantage of all that a great property management company can offer you as an investor. For exam- ple, you will need to conduct regular
property evaluations for each rental property that you own. As a prop- erty owner and investor, you need this information to understand your local rental market and ensure that your property remains competitively priced. Although they are important, property evaluations can take up a lot of your valuable time. It likely makes sense to entrust that crucial task to a property management expert who knows the local market inside and out. They have the expe- rience and information you need to assess your property without all the time and hassle of doing it yourself. The same thing is true about planning for capital improvements. Owning single-family rental proper - ties requires long-term thinking. A rental house will need to be updated and improved as elements wear out or become unsightly. But trying to pay for major improvements or repairs could be a budget-killer unless you’ve planned ahead. This is something that a great property management company should be able to help you with. Your property manager should have experience budgeting for necessary improve- ments and help you establish a
timeline for when each update will need to be done. This proactive approach to improving your rental property can be far better for your cash flows and your overall profit - ability than the alternative: waiting for something to break (or flood, or fall apart) and then rushing to make emergency repairs. Finally, a great property man- agement company can be your single greatest asset when it comes time to purchase additional rental properties. While real estate agents are helpful, they can only sell you currently listed properties. A prop- erty management company, on the other hand, has knowledge about rental properties and rental proper- ty owners in your area. They can put you in touch with owners willing to sell a rental property before it ever goes on the market, a property that is sometimes already rented out. If you are looking for a way to make the most of your investment properties, give your nearest inde- pendently owned and operated Real Property Management franchise office a call. We have the resources and information you need to help you achieve your investing goals. •
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Stay up to date while on the go with our twice-weekly podcast. Available in both audio and visual formats, the Think Realty Podcast is your source for the latest industry trends, hard-hitting insights and news. Vist thinkrealty.com/podcast to get your listen on now, or find it on your favorite podcast platform.
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Attractive Atlanta: Why the Young and Educated Love This Hot Market
by Marco Santarelli, Norada Real Estate Investments
A tlanta real estate is some of the most expensive in Georgia, although Atlanta house values don’t compare to the most expensive real estate in the U.S. Unlike some cities, Atlanta isn’t mainly white- or blue-collar. Instead, the most prevalent occupations for people in Atlanta are a mix of both white- and blue-collar jobs. Overall, Atlanta is a city of professionals, sales and office workers and man - agers. There are especially a lot of people living in Atlanta who work in sales jobs (12.60%), office and administrative support (11.78%) and management occupations (11.45%). Also of interest is that Atlanta has more people living here who work in computers and math than 95% of the places in the US. Atlanta is one of the most attrac- tive larger cities for people who are young, single, educated, and upwardly mobile career starters. This makes it a good place to live for young singles in their 20s and
30s and who have undergraduate or graduate degrees and are starting their professional careers. Although Atlanta is a large city, this demo- graphic is significant enough that young professionals will find many others like themselves here, with good opportunities for friendships, recreation, and more. One of the benefits of being in a big city like Atlanta is having a public transportation system. You will find many people using the bus for their daily commute, even though other transportation options exist. If you ask these commuters, many will tell you that not having to drive in the snarl of big city traffic is one of main reasons for leaving the car at home, or even not owning a car at all. With so many people taking the bus At- lanta benefits from a reduction in air pollution and traffic.
ucated cities in the nation. 44.95% of adults in Atlanta have at least a bachelor’s degree. Compare that to the average community in America, which has just 21.84% with a bache- lor’s degree or higher. The per capita income in Atlanta in 2010 was $35,453, which is wealthy relative to Georgia and the nation. This equates to an annual income of $141,812 for a family of four. However, Atlanta contains both very wealthy and poor people as well. Atlanta is an extremely ethnically diverse city. The people who call Atlanta home describe themselves as belonging to a variety of racial and ethnic groups. The greatest number of Atlanta residents report their race to be Black or African-American, followed by White. •
Information by Department of Numbers, Bureau of Labor Statistics, U.S. Census Bureau and Location Incorporated are deemed reliable but not guaranteed. •
ATLANTADEMOGRAPHICS Atlanta is one of the most well-ed-
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Why American IRA’s Fee Structure Makes More Sense—and Dollars
by Jim Hitt, American IRA
I nvestors are rightly concerned about strategy, long-term returns, and the past performance of underlying assets. But you know what falls too often by the wayside? Fees . This is especially true with Self-Directed IRA administration firms, in which investors can lose a sense of just how big a chunk fees can take out of their returns. At American IRA, we think fees that grow with your success are counterproductive. Why would you want to be charged a “success fee,” in so many words? That is why we have put together this quick comparison to show the difference between how we structure our fees: HOW AMERICAN IRA’S FEES DIFFER It is all based on a simple premise: your Self-Directed IRA company should not make more money just because you do. After all, the goal here is independence . Why should you be beholden to someone else’s fees when you start to see success?
Let us take a look at a comparison: • If you have 1 note and 2 properties in your IRA, our typical competitors will charge you $900/year or more. At American IRA you would only pay $285/year. • With an account value of $200,000, you will still pay American IRA only $285/ year. But our typical com- petitors may raise the rates on you, so now you are pay- ing $660/year or more. What does that mean? It means that American IRA’s Advantage Account Value Fees are going to remain static, even as your account grows. That, in turn, means that the percentage of the fees you pay go down the more you succeed. You are incentivized to invest and succeed, because the more you do, the less the fees are relative to the account. Another area to pay attention to whether fees increase with the number of assets in the account. For example, a typical competitor of ours may charge $300/year for a simple account with one asset in it.
But what if you have one note and two properties? Those fees may accelerate. Not so with American IRA’s Advantage Account Value Fees. Unlimited assets and unlimited account values come with a low, set annual fee. The result: you continue to pay the same fees as your account grows. The fees for the account are low and get lower relative to the account size if your account continues to move up over time. This is a key advantage over many of our competitors, who want to enjoy a piece of your success by charging you more as you improve. But we do not think that your accounts growing should be something that you deserve to be charged for. After all, that is the whole goal of retirement investing, isn’t it? •
For more information, give us a call at American IRA by dialing 866-7500-IRA or download our free “Essential Guide to Self-Directed IRAs” at AmericanIRA.com/essential-guide.
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Your business doesn’t fit in a lending box.
So we got rid of it. Customized funding solutions designed to scale with you.
Single Family + Multi-Family | New Construction | Fix-and-Rent | Fix-and-Flip | Cash-out Refinance
For experienced developers, Fund That Flip offers: • Underwriting customized to your business • No pre-established lending limits • Maximum LTV and LTV ratios • Rates starting at 8.4 9%
14 : : INVESTOR REV I EW fundthatflip.com/thinkrealty email@example.com 646-895 -6090
Rental Financing & Seasoning – What It Means
by Matt Rodak, Fund That Flip
S easoning is the amount of time a property has been owned or has had an active mortgage. While this “waiting period” varies per lender, most investor-friendly institutions have an average seasoning period of 3-6 months. Meanwhile, more conservative institutions working with owner-occupied loans tend to be closer to a 12-month seasoning period. In many cases, banks and lenders will not allow investors to refinance their property if it has not been seasoned for the appropriate timeline. This restriction is in place to help prevent “scammer flippers” that are looking to dust off a home and sell it in a matter of days for a profit. Seasoning is also designed to prevent the constant flow of homeowners looking to refinance every few months when the economy is booming to pull out their equity. Without seasoning, people that purchased their home for a 20% discount would feasibly be able to go back to their lender the day after closing looking for cash. To some banks, this is a scary thought, given the risk associated with cashing someone out of their property so shortly after purchasing. To other lenders, removing this requirement is a catalyst for growth that allows experienced and efficient investors to kick it up a notch. While it does come at a slightly higher risk, some institutions see the value they bring to their clients by removing seasoning requirements. These investors don’t
have to wait 6+ months to pull their equity out of a deal to start working on their next project. Instead, they are able to leverage their speed and efficiency. Seasoning is most critical to investors that engage in the well-known BRRRR strategy - Buy, Rehab, Rent, Refinance, & Repeat. An investor will buy a rundown property well below market value in cash and renovate the property to create a sizable increase in value. The investor then locates a lender that will allow them to pull their cash out by obtaining a mortgage on the property. With cash back in the hands of the investor, the last stage of BRRRR can be satisfied by finding a new property and completing the process again. The speed at which the “Repeat” can occur largely depends on a lender’s seasoning period. With most competitive lenders having a seasoning period of 3-6 months, this means BRRRR investors are often limited to recycling their cash twice a year. Compare this with lenders that have 0-3-month seasoning, where the same stack of cash can be recycled 4+ times a year. Although no seasoning lenders may have slightly higher interest rates, this cost is significantly offset by the speed and volume investors can achieve. Next time you are shopping lenders, understand that no single term is as impactful as time. Lenders like Fund That Flip with no seasoning allow you to leverage this by allowing you to scale your business as fast as you can move. •
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