INVEST R A Think Real ty Publ icat ion SPONSORED CONTENT
GARY PINKERTON Aligned Strategic Wealth
GARRETT SUTTON Corporate Direct
LEE ROGERS RealProtect
Jason Engelman Opens Turnkey Doors FreakyFast
NATHAN LONG Quest Trust
MARCO SANTARELLI Norada RE Investments
TURNKEY RENTAL INVESTMENTS
INTRODUCING THE FF REAL ESTATE FUND .
Doubl e digi t returns Low - r i sk Monthl y di st r ibut ions Per fect for sel f - di rected IRAs
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LLC
( 706 ) 510 - 0938 CALL TO LEARN MORE
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Investing in Turnkey Rental Companies in 2021
by Jason Engelman, Freaky Fast Home Buyers
If 2020 has shown us anything, it’s this: make sure you like where you live. After being in quarantine for months, you either love or hate your home. We saw it was the year of major home improvement projects coast to coast. Last year also proved to investors that single-family homes are great investments. Blackstone Group reported in September 2020 they were deploying $300 million into SFH. We continue to see strong underlying fundamentals in the rental-housing sector, and believe the company’s high-quality, income-generating assets are poised to generate stable performance under the leadership of its best-in-class management team,” said Frank Cohen, chief executive officer of Blackstone’s investment vehicle, a nontraded real estate investment trust called “BREIT.”
Desire for SFH investing is growing. Predictions indicate 2021 is going to be one of the greatest wealth-creating opportunities than ever before. I’m sure you have heard real estate gurus say something like this many times now. But it’s true. However, it’s my belief that it’s going to be short-lived. The inven- tory that will hit the market from foreclosures will be sucked up by the bigger investment groups. I see it being a buying frenzy. I also expect to see the demand for rental properties go up. People need a place to live. With foreclosures going up, the amount of potential tenants will also increase. This is why finding a turnkey company to work with is so important. Here are four reasons turnkey companies can help you see growth in your portfolio this year:
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NO. 1 WHY COMPETE WHEN YOU CAN JOIN? Turnkey companies already have an inside track in their markets. They have developed relationships with realtors and wholesalers and through their own marketing. Instead of spending money and time in market- ing to find a deal, buy a turnkey prop - erty. Many investors struggle to grow due to the lack of deals. NO. 2 HGTV QUALITY HOMES As a turnkey provider in secondary markets, we realized that many land- lords do the bare minimum rehabs or updates on their rentals. Ever hear the saying lipstick on a pig? That is where the term comes from. Freaky
Turnkey companies are always looking for extra capital to purchase the inventory to supply the demand. You can lend out of an IRA, an LLC, or even your personal name. I have investors who do both. They want to build for the future with rentals but also want to build up their IRAs or liquidity with lending deals. Freaky Fast Home Buyers and Investments was created to help investors build wealth through passive income. As a turnkey operation we strive to provide safe investment opportunities that provide the highest returns as possible. For example, in January 2021 we started the FF Real Estate Fund 1. Many of our inves- tors prefer to lend capital through their IRA. With the help of IRA custodians like Camaplan and Quest, it is now simpler and more convenient for investors to invest in Real Estate. The fund was created to provide investors who are making less than 10% an opportunity to increase their ROI to double digit returns and still provide a safe and secure investment. Now is the time to act. Opportunities come only so often. Turnkey properties are going to build wealth for many investors this year. Make sure you are one of them! If you are looking to buy more property or you want to lend with capital in your IRA, give Freaky Fast a call. Write a check and start collecting checks freaky fast. It really is that simple! •
Fast demands a higher quality of home to provide to ten- ants. One of the best compliments I have received from a tenant is that our properties are like a taste of heaven. Turnkey companies that do multiple rehabs at once are able to buy in bulk lowering the cost of the rehab budget and providing a high-quality property. Freaky Fast offers investors a 12-month home warranty to insure they are
receiving a great rental for their portfolio. NO. 3 PROPERTY MANAGEMENT BUILT IN
If you noticed what Frank Cohen said in his statement above—certain assets are poised to generate stable performance under the leadership of its best-in-class management team. Property management is so import- ant but now even more so. With the rental eviction moratorium in place, it is so important to have the right property managers in place. They will lower your risk of not collecting rent. The best turnkey operations have great built-in property management that will help you be successful. NO. 4 YOU CAN BUY OR YOU CAN LEND Even better you can do both. With turnkey companies, your investment can be tailored to your preference. If you want to own and build up a rental portfolio then the best way is turnkey. If you don’t want to take on the lia- bility of being a landlord, then lending is the way to go.
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WRITE A CHECK AND START RECEIVING CHECKS FREAKY FAST . TURNKEY RENTAL INVESTMENTS
We of fer investors 10 - 15 % ROI on our rental proper t i es in Columbus , GA and Cinc innat i , OH . Learn More at FreakyFast Investments . com or contact us at Info @ FreakyFastHomeBuyers . com
( 706 ) 510 - 0938
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Where to Buy Investment Properties in Houston
by Marco Santarelli, Norada Real Estate Investments
Y ou won’t feel limited when it comes to choosing the best neighborhoods in Houston to buy invest- ment properties. There’s something for every age and stage in life. Best of all, the Houston enjoys some of the lowest housing costs in the nation. When compared to the 20 most populous metros, housing costs in Houston are 36.6 percent below average. Here are five neighbor - hoods in Houston where you can buy a house or invest in a rental property.
NO. 3 Uptown, Houston Uptown puts residents right next to Highway 610. St. Michael Catholic School and Fusion Academy are locat- ed in this neighborhood. There are several other private schools in the area. Public schools in this community are average. One of the reasons why people pay such high rent here is the incredibly short commutes given the fact that you’re living in Houston. The median rental rate per bedroom is more than $1500 per month. It is a great place to buy an investment property in Houston, Texas. EaDo, Houston EaDo or Eastern Downtown sits due north of Gulf Free- way and east of South Freeway. The community costs a little more to live in than downtown but is safer than downtown. Property is appreciating here much faster than downtown, making it a good place in Houston to invest in rental properties. NO. 4 NO. 5 MuseumDistrict, Houston The Museum District is due west of the Medical Cen- ter, putting residents in easy reach of both major medical employers and downtown Houston jobs. You do have to earn two to three times as much to afford to live here. This area is attractive to both young adults and empty nesters who want to live near the 19 museums in the area. Others appreciate the proximity to Rice University, whether they work there or attend the school. This makes the Museum District one of the best neighborhoods in Houston for buy investment properties. Rental rates are falling in most inner loop neighborhoods because of the high supply relative to demand. •
NO. 1 Greater Heights, Houston
Greater Heights is a suburb north of Highway 10 and west of I-45, and it is a short hop to Hardy Toll Road. This community is within commuting distance of jobs in down- town Houston and all of the northern suburbs. Public schools in the area range from 4 to 6 on a 1-10 scale. One of the highlights of this community is being close to the Northline Commons.
NO. 2 River Oaks, Houston
River Oaks is so hot that Trulia reports average rents of $2500-$3000 per bedroom. St. John’s upper and lower schools are located in the heart of this community. The public River Oak’s elementary school received a 10 out of 10 from Greatschools.com. Nearby Lanier Middle School was rated 10/10, as well. Lamar High School was an average 5 out of 10. This community is a short hop from I-69 and Highway 610 without leaving residents to live with the noise.
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Help Your Investors take Back Financial Control Combining Efficient Real Estate Investing with Safety, Control and Generational Wealth. – www.garypinkerton.com
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Aligned StrategicWealth
by Gary Pinkerton
At Aligned StrategicWealth (ASW), we aim to support you in adding value to and bringing success for your investors. Our target client is the modern American Patriot – the rugged individual that willingly takes ownership for their life, family, business, investments and lega- cy. Our country was founded on the unprecedented idea that the citi- zens outrank the government whose power extends only to protecting the individual and their rights – America gives people the confidence that if they do the work and put the money in to create something, whether it’s a product or a service, they get to reap the rewards. 250 years ago, Amer- ica was first to try this experiment and the explosive results are evident across the globe. Human potential is limitless, yet there are millions of people that come to the end of life not having shared their unique genius with the world because their environment doesn’t support it, their time is consumed making ends meet, and they’ve been
beaten into belief that their dream is not possible. Helping people set up a bulletproof personal economy of a Strong Foundation + Cash Flowing Investments so they can focus on their passion and achieve greatness is what drives Team ASW. It comes down to people having the ability to devote time to what they’re unique- ly good at or interested in and then prospering from their effort. THE KEY: FUNDINGASAFE & EFFICIENT PERSONAL ECONOMY, AFOUNDATIONTO WEALTH ASW helps people build a personal economy where they’ve got control over how they use their resources and what they choose to do in life. A personal economy lays a foundation that enables them to invest in them- selves and their business, far more important than investing in their 401K. And to be successful long- term, Patriots need reserves in a place that are protected and private,
offsetting risks that typically cause families and small businesses to fail, like inflation, shutdowns, recessions and high taxes. At ASW, we use insurance-based financial planning and services to solve that foundational level. At the core, my team educates on the use of an insurance policy as a vehi- cle for storing emergency money, reserves for their businesses or properties, and cash for upcoming major expenses and investments, where it’s protected and can grow three or four times as fast as it would in a savings account and with- out the impact of taxes. This financial foundation, the life insurance benefit, privacy, protec - tion, and tax-free wealth available through this strategy is powerful. And it is the best vehicle for enabling financial dreams and growing per - manent wealth. Let’s change the future for your investors and help keep America great!
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Congress and Corporate Transparency: A New Burden for LLC Owners
By Garrett Sutton, Corporate Direct Solutions
T he Federal government wants to know who owns your busi- ness and your real estate holding LLCs. In December, 2020 Congress passed the Corporate Transparency Act (CTA). Before this bill compa- nies did not have an obligation to report their true owners. As long as the company paid their taxes there wasn’t an issue. But within the federal bureau- cracy and law enforcement circles there are people who just need to know more. Arguing that sharehold- er anonymity allowed bad people to engage in financial crimes, includ - ing - sound the alarms! - money laundering and terrorist financing, the CTA passed both houses. Instead of requiring the states, which govern corporate formation, to collect such information, beneficial ownership data on every corporation and LLC must now be reported every year to the U.S. Department of Treasury’s Financial Crimes Enforcement Net- work (FinCEN). Opponents argued that such infor- mation could be easily gained and misused. Proponents countered with hubris, stating that all the sensi- tive data would be stored on private
networks away from public scrutiny. Their assurances of confidentiality occurred the same week as the iden- tification of the massive Solar Winds hack, the Pearl Harbor of cyber-at- tacks, in which the Russians gained God access to thousands of federal websites and networks. But never mind that. Law enforce- ment’s desire to know who owns every corporation, LLC, LP and other state-chartered entity is clearly writ- ten into the legislation. FinCEN must keep the names and addresses confi - dential (servers willing) except when: 1 Federal Agencies involved law enforcement, intelligence and national security want it;
mation can be expected to be used by both governments and dark web hackers. By 2023, every business entity at the time of its formation and on an annual basis thereafter must report its beneficial owners’: 1 Full legal name; 2 Date of birth; 3 Current residential or business street address; and
4 Unique identifying number from a U.S. passport, state
driver’s license or similar state issued ID.
The complete disclosure require- ments, including the meaning of ‘beneficial owner’, will be further fleshed out by future regulations. Corporate Direct will keep you informed of these new rules and will attempt to assist you with filing your FinCEN report. Failing to proper- ly file will carry penalties of up to $10,000.00 and two years in prison. So while not welcoming this new reporting burden, we will work with you to stay on the safe side of it. •
2 State and local agencies involved in criminal or civil
investigations after obtaining a court order want it;
3 Foreign intelligence agencies want it; and
4 Other federal regulatory agen- cies including the IRS want it. As such this confidential infor -
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Insurance for the Real Estate Investor
Why realprotect?
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 design an insurance program that helps you meet your coverage and pricing objectives. realprotect prom- ises to work diligently to find the best coverage 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 insur- ance 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 experi- ence and innovativeness to focus on building business relationships with prospective clients, market- ing 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 Quest for Financial Growth
by Nathan Long, President of Quest Trust
T he real secret to success is not chasing the hottest deal; it is coupling the best tax strategy with your specific investment. I did not become a CPA or study to become a tax attorney to maximize my investment returns, and you don’t have to either. Instead, I spent my time learning about how I could do the same real estate investments I have always done, but grow my profits completely tax-free. In the process, I stumbled across life changing knowledge on how I could pay for my family’s everyday expenses for health and education also completely tax-free. This knowledge is accessible to anyone who wants it, and I’m happy to share some of it with you. I started my career in the automotive industry and spent more than 17 years in that field, working with Automotive Investment Group (AIG). Like many Americans, I spent my time in corporate America investing my hard-earned money in stocks or mutual funds, leaving my financial success in the hands of other folks who may or may not have understood my financial and personal goals. Over time, I became motivated to take my future into my own hands and I began to pursue real estate investing. It’s been 25+ years later and I have never looked back. Houston’s unique and thriving economy, in addition
to its historically strong local communities, present an unparalleled opportunity for collective and personal financial growth. Our city is not only poised for future growth (since 2010, the Texas population has grown by more than 3.5 million. [according to Forbes]), it is presently a hub for business, opportunity, and diversity. 26 Fortune 500 companies call Houston home, in addition to the largest medical center in the United States and major employers like ExxonMobil and HP (according to RWN). While these businesses continue to stimulate economic growth, our most important assets are the people who live here. By combining different tax-advantaged accounts with the real estate investing skills and strategies you already possess, you can create unlimited opportunities not only for yourself, but for your local community and for your city.
As the President of Quest Trust Company, I have the exciting opportunity to share my knowledge and help investors learn how they can make a good deal even better with the right education. Self- Directed IRAs allow Americans to choose their own investments; namely, private assets like real estate, private companies, promissory notes, and many other alternatives to traditional publicly traded investments. Choosing your investments is a strategic way to use your knowledge to your
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advantage, meanwhile growing your profits tax-free. The IRA owns the investments, the same way that your IRA would own stocks, and profits return to the account, without Uncle Sam’s fingers in the cookie jar. Imagine the impact of realizing the full benefit of your investments, by paying no taxes on the profits. In fact, imagine the potential of varied, self-directed investments, and how that could increase your wealth. I’ve seen countless situations where investors have chosen not to do an investment that may have created enormous growth inside of a self-directed account. Let’s say you have the opportunity to purchase a property, subject to the existing financing. Often in these cases, there is little to no equity in the deal and little to no cash flow after the maintenance and repair costs are considered. Many investors would walk away from this type of deal; however, this is an incredible opportunity for a Self-Directed Roth IRA. How so? One possibility is to hold that property for a long period and allow it to go up in value and for the loan to be repaid. In the end, your Roth IRA would own a property, free and clear, meaning that future cash flow and appreciation are accumulating tax-free inside of the account. By the time you enter retirement, you will see the benefit of tax-free distributions from this Roth IRA. However, Self-Directed accounts are not exclusively about long- term goals. In fact, you can start growing tax-free profits inside of accounts specifically designed for health or educational expenses and immediately take distributions. H. Quincy Long, my brother and the Founder of Quest Trust Company, did
an investment with his Self-Directed Roth IRA and his daughter’s Coverdell Education Savings Account, where each account owned a percentage of a property. Quincy bought the property at a great price and it had a decent cash flow. The renter paid their payments each month directly into Quincy’s Roth IRA and my niece’s Coverdell ESA. This investment enabled Quincy to pay for his daughter’s education tax- free by taking distributions to pay for her tuition, books, a laptop and other essentials. Quincy’s daughter graduated college and the same renters are still residing in the property. Now the ESA can pass on to Quincy’s granddaughter and her educational expenses can be paid tax- free – talk about generational wealth! Another potential strategy is to consider a Health Savings Account. With health care costs on the rise, many Americans fear
the possibility of unexpected and unmanageable medical costs. A Health Savings Account allows for tax-free distributions for health expenses. HSAs allow for a diverse range of health expenses to be paid for tax-free, including necessary medications, surgeries, and braces for your kids, Real estate investors can leverage their skills to do investments within these accounts and start building a nest egg for themselves and their families. For this reason, HSAs are one of my favorite accounts. One of my all-time favorite investments involved partnering my HSA with my Traditional IRA. First, funds from my previous employer 401(k) were rolled over into my Self-Directed Traditional IRA. Combining my new Self-Directed Traditional IRA with an existing Self-Directed Health Savings Account, I invested both accounts
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into an equity participation loan. By partnering my small HSA alongside my Traditional IRA, I created additional funds which would later be used for important health expenses. At the outset of this particular investment, I had only around $6,000 in my HSA. However, at the completion of the loan six years later, my HSA was well over $40,000. My profits returned to my Traditional IRA and HSA, and I paid absolutely no taxes on these earnings. I like to think of HSAs as the best of both worlds, because I also received a tax deduction on the contribution that I had made into my account, reducing my personal taxes too. This is the part where the story earns the title of my favorite investment – I was then able to take a tax-free distribution
to buy an airplane engine. You may be thinking that an airplane engine is not a qualified medical expense, and you’re correct. However, you can take a distribution for a qualified medical expense that happened in a prior year, provided the HSA was established prior to the medical expense was incurred. HSAs have so many unique features and allow for a broad range of expenses to be paid for like optical, dental, holistic medicine and much more that you can read about in IRS Publication 502. In conclusion, there are many ways to increase returns you may not have previously considered, but education remains the key. At Quest Trust Company we have highly educated staff and countless educational opportunities; live,
online and in-person. We never charge for the education we provide at Quest, because we believe that an educated client is our best client. Your success is also ours, and it contributes to success of our extended community. The best part? You don’t have to be a client to access the benefits of our free education. I encourage you to visit our website, but more importantly, setup a one-on-one consultation with one of our IRA Specialists to answer your questions. It’s completely free. •
Learn more about Quest Trust Company at questtrustcompany.com.
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