INVEST R A Think Real ty Publ icat ion SPONSORED CONTENT
LINDA HYDE AAPL
DEMETRIOS BARNES SmartRent
GENE RIFE Owner Finance Academy
WILLIAM TESSAR CIVIC
Rob Barneyand DHLC Investments on Consistent Capital
LEE ROGERS RealProtect
MARCO SANTARELLI Norada RE Investments
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Consistent Capital
Content provide by DHLC Investments
R ob Barney, President of DHLC Investments, Inc. and owner of DHLC Mortgage, LLC, has been involved with real estate and real estate financing since 1998 when he bought his first investment property. Since then Barney has become a Realtor, rehabber, landlord, speaker, men - tor and a direct hard money lender. In these stressful times of COVID-19, now more than ever borrowers and capital investors both, need to know that their lending partner has the experience and com - mitment to guide them through uncertainty. DHLC suc- cessfully navigated through the real estate meltdown in 2007 and 2008 and because DHLC is not beholden to Wall Street for its capital, we can continue to provide a consis - tent source of capital to our borrowers and returns to our capital partners. When asked about DHLC’s focus, Barney stated, “Our focus is two-fold. 1.) Helping our 1st Deed of Trust Mort - gage Investors build a low-risk passive income by earning an 8-10% ROI with non-owner occupied fix-n-flip loans; and, 2.) Helping real estate investors (borrowers) fund and profitably rehab their fix-n-flip projects.” Barney does not view the business as transaction based, but rath- er a partnership between DHLC and its borrowers. “We really like to work with our borrowers to make sure they are making the right decisions for the right reasons. I personally guarantee every loan to my investors. So if a loan goes bad, I am the one that has to take it over and
solve the problem,” says Barney. “If the property doesn’t sell at foreclosure, then I may have rehab the property myself and sell it.” Barney has made every effort to instill these values in his team at DHLC. “I have a dedicated and reliable team that helps me look at every proper - ty as if it could be our own,” says Barney, who adds that this business approach has brought DHLC many new and long-time investors and borrowers. “They simply trust that we will do what we promise to do, it’s that simple,” says Barney. Whether flipping homes or lending money, both have the opportunity to change lives. Barney says it’s gratifying to give borrowers access to funds and investors a profit - able opportunity that gives them the ability to reach their financial goals and dreams. Barney spends his personal time working on the 501(c)3 he founded in 2016 to provide no-cost contractor services to individuals and families in times of crisis with housing needs. “Giving back in this business is essential and starting a charity has been a long-term vision of mine,” states Barney. He hopes to DHLCNow.org to areas outside of the Dallas market in the very near future. Barney is also a frequent guest lecturer at Collin Coun- ty Community College and Champions School of Real Estate. DHLC Investments, Inc., please visit: www.dhlc. com or contact us at contactus@dhlc.com. We may also be reached directly at 214-501-5151. •
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4 : : INVESTOR REV I EW https://ownerfinanceacademy.com
Everyone Gets toWin
by Gene Rife, President of Owner Finance Academy
O ur entire leadership team has spent close to $100,000 in real estate education and at the end of it, we learned that their education could never match the hype they used to sell us. In fact, this is true for the entire industry—about one percent of everyone that buys the education buys a house. Over a decade, our collective group of investors have cracked the code and learned how to buy houses with little or no cash, not using our own credit, and then sell those houses with owner financing, earning more than 150-200 percent profit on every house. The part we love the most is that everyone involved in the trans- action gets to “win.” We have built a very significant portfolio and now want to share our experience with anyone else that is ready to take control of their lives and the future for their family. We sat down and asked ourselves, what kind of training would we want
• affordable skip tracing program • monthly deep dives about marketing, client interaction, lead generation and more regular online ongoing support calls, for those in North Texas we will go out with you on your deals and show you how it works at the kitchen table (where we do most of our deals), and we will even pay you while you are being trained on these deals. During this phase of the training the company will provide all the funding for the deals and take all the risk as well. This is the only program of its kind anywhere. Other than the in-person boot camp, and “kitchen table” train - ing the entire program is available online. To make this available to as many people as possible, we have made all the programs extremely affordable. •
if we were starting today. And that is exactly how we designed our train - ing—to give you everything you could possibly need to succeed and if you do not, it is only because you did not follow our program and or did not try. The material is not presented from a high-level academic perspective, instead it describes in detail what you need to know when you are going out in the field and talking with the sellers and buyers. Our program includes • a 5-day in-person boot camp, all hands-on, application-oriented training using real-life deals as examples • almost 400 short videos explaining every aspect of the transaction • all the contracts and disclosures • best-in-class lead generation platform
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To find private money you can trust, start here. Our members are the most-trusted private lenders in the business. They’ve pledged to follow the industry’s only Code of Ethics , enforced by the oldest and largest association for private lenders. Find your next financial partner today at aaplonline.com/directory.
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Where Can You Find Funding You Can Trust?
by Linda Hyde, AAPL
W e at the American Association of Private Lenders field hundreds of emails and phone calls monthly asking for referrals to lenders that real estate investors can trust. We’ve heard the bait-and-switch stories, the haphazard and stressful closings, the exhausting search of shopping a deal around. Real estate investors are looking for experience, partnership, and above all: trust. Every day at AAPL, we work to bring that trust to our industry. We set the standard for professional conduct and are the only organization that enforces a Code of Ethics. We pledge to our members to provide structure and legitimacy to the private lending industry, and in turn, they promise us – and you – that they will uphold the trust you place in them.
• Adhere to all laws with respect to the services in which they engage. • Not discriminate against borrowers based on sex, age, race, sexual orientation, or religion. • Be honest and forthright in all their dealings. • Only change their loan terms with just cause and perform in accordance with the agreed-upon terms. • Not originate loans intending to see the borrower fail in order to obtain title to the property. • Adhere to all advertising laws as defined in the Truth-in-Advertising Act • Respect the intellectual property rights of others and comply with regulation related to copyrights, trademarks, patents, and trade secrets.
LINDA HYDE AAPL
Each year, we host the nation’s largest gathering of private lenders in Las Vegas, NV. This year will be our 12th Annual Conference on November 14-16 at Caesar’s Palace. Register at aaplconference.com to join more than 400 private lenders dedicated to learning the industry’s latest and best practices and find the trustworthy capital you’re looking for. Our members proudly display the AAPL Member emblem below. Look for it in your lender’s email signature and on their websites, and then visit aaplonline.com/directory to verify their membership status. You should be able to trust the people funding your business. Let us help. •
OURMEMBER CODE OF ETHICS To be an AAPL member, members must promise to:
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FUNDING STRATEGIES FOR INVESTORS YOUR GUIDE TO FINANCING TYPES, CONSIDERATIONS AND SOLUTIONS FOR YOUR INVESTING SUCCESS T hriving as a real estate investor today requires meaning they lend based on the value of the “hard” asset, rather than your personal borrowing strength, making the loan process considerably faster and easier than conventional lending. CONVENTIONAL LENDERS – With interest rates at
a sound and stable financing strategy. Having a consistent, reliable capital partner is perhaps the most important element to building a solid business model. It is natural to be apprehensive in these uncertain times. It is often in the most uncomfortable times when the greatest opportunities are born. As an investor, by preparing yourself to be in the best possible liquidity position to exploit these opportunities, you will be poised for optimal business growth. Financial and business strategies evolve over time, and depending on your business goals, there are a myriad of capital or financing options available. Here is a guide for developing your financing strategy. TYPES OF FINANCING PRIVATE LENDERS – This includes two completely different types – 1) Individuals (friends, family, accredited investors, etc.) that self-fund real estate investments, and 2) Professional money lenders, sometimes called hard money lenders. These are institutional private money lenders whose capital partners include banks and Wall Street investment firms. These are asset-based lenders,
historic lows, banks, credit unions and mortgage lenders are common if you meet traditional lending criteria with significant personal borrowing strength. Drawbacks may include lower LTVs, higher down payments and a more difficult and time consuming qualification process for a bank loan on an investment property. MORTGAGE BROKERS – Brokers do not actually lend the money, instead they work to find you the right lender from all the options available. For this expertise, they take a commission in the form of points on the loan, which you pay at closing. REAL ESTATE PARTNERSHIPS, JOINT VENTURES (JVS) OR EQUITY PARTICIPANTS – Individuals or companies may be brought into a deal to invest their money in a property. Be prepared to provide a cash flow analysis and business plan that may include detailed rehab plans and financial forecasts.
“One of the biggest rookie mistakes is to focus on rates. Keep your perspective on the entire financing package. Rates, leverage, reserves, fees, investment goal and exit strategy are all part of that package. CONSIDERATIONS FOR SELECTING A CAPITAL PARTNER
INVESTMENT STRATEGIES Financing solutions are not one-size-fits-all. Each property may have a different strategy, therefore, be clear on your intention with the asset and determine the short or long-term objective. Having a clear exit strategy in advance will help you find the right financing solution for any strategy: FIX AND FLIP – When you find a good deal, you have move quickly to acquire it. Know your market and the housing trends that are selling. In today’s market, you can be optimistic that you can reap returns, whether by way of cosmetic updates or complete transformations. REHAB FINANCING – Preserve your cash by including the cost of construction and rehab into your loan. You will receive draw payments at various milestones to cover these expenses. FIX AND HOLD – Real estate as an asset class continues to generate attractive returns. Demand for rental properties is high, allowing you to benefit from both monthly cash flow as well as property appreciation. BRIDGE-TO-CONVENTIONAL FINANCING – Oftentimes a short-term bridge loan will enable you time to improve the property, or generate monthly-cash flow required to refinance into a low-interest conventional loan. CROSS-COLLATERALIZATION – If you have multiple properties, you can leverage the collateral of all, into one private money loan. This can be especially appealing if you want to use the combined equity in your properties to more easily purchase additional ones. As the real estate market anxiously attempts to figure out what the future holds, now is the ideal time to focus on managing and potentially re-tooling the financial aspects of your business — which includes building relationships with trusted financial partners to help ensure your short and long-term growth.
Circumstances such as the recent pandemic clearly illustrated the imperative of conducting due diligence when choosing to align with a capital partner. It is important not to think merely transactional – getting a good deal on one property – but rather focus objectively on who will be your capital partner as you grow and change, and as market dynamics shift. CAPACITY AND ACCESS TO CAPITAL – At the onset of the pandemic, many lenders were over-leveraged and reliant on capital partners to continue funding loans. However, warehouse lines dried up and institutional investors paused. Only the strongest, well-capitalized lenders prevailed. To protect yourself, identify their lender’s capital source. Are they lending their own money, using bank lines or brokering? Ensure they have an uninterrupted track record of funding loans as well as the strength and capacity to meet financial commitments and adapt to change. EXPERIENCE - There is simply no substitute for experience. Your sales associate, broker or lender needs to possess a broad perspective and know how to deal with challenging scenarios, unique market or property nuances, and fluctuations in the market. The industry has been feast or famine over the past decade and the pros who have weathered the ups and downs can bring that expertise to benefit you and your business. FINANCING OPTIONS – One of the biggest rookie mistakes is to focus on rates. Keep your perspective on the entire financing package, your investment goal and exit strategy. Leverage, points, fees and prepayment penalties are all part of that package. Credible lenders understand each unique scenario and offer loan options to meet individual needs. True capital partners are problem solvers. COMMUNICATION – Clear communication and transparency into the loan process are vital for building a successful capital partner relationship. Don’t get taken in by slick marketing that makes big promises, especially when actions suggest otherwise.
YOUR TRUSTED LENDING PARTNER®
Ready to build a financing strategy with a trusted lending partner to help you grow your business? Visit our website today at www.civicfs.com or call (844) 657-2858. © Civic Financial Services, LLC. All loans are made in compliance with Federal, State, and Local laws. Civic Financial Services, LLC is a California Finance Lender under NMLS 1099109 and the California Department of Financial Protection and Innovation License #603L321. Civic Financial Services, LLC is an equal opportunity lender.
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Dallas Real Estate Market Forecast 2021
by Marco Santarelli, Norada Real Estate Investments
D allas Real Estate is one of the most affordable in the state of Texas. It is also one of the hottest real estate markets for rental homes in the nation. Before the COVID-19 pandemic hit the nation, the Dallas real estate market was expected to outperform the nation in 2020, in terms of annual home value appre - ciation. But what are the predictions for the Dallas real estate market now? Let us look at the price trends recorded by Zillow over the past few years. Since 2015, the median home prices in Dallas have appreciat - ed by a whopping 92 percent (from $122,000 to $238,156). At the start of 2019, the median home price in Dallas was around $201,000 and it was a gain of more than 13 percent from a year earlier. Home prices have risen by only 1.9 percent (Zillow) in the last twelve months. The DFW metro area has experienced smaller price gains as
supply to dwindle to zero. In terms of months of supply, Dallas can become a buyer’s real estate market if the supply increases to more than five months of inventory. And that is not going to happen. In the long term, the Dallas real estate market remains strong and skewed to sellers, due to persistent imbal - ance in supply and demand. For sellers in Dallas, it is a great time to sell. Motivated buyers are looking for houses for sale, and you are not competing with as many property owners. Many sellers have chosen to back out amid this pan - demic. For buyers in Dallas, mortgage rates are at their lowest. For those who qualify for mortgages, low rates help counteract rising home prices and boost purchasing power. So, they should take advantage of scooping up their favorite deals that otherwise are taken away by seasoned inves - tors in bidding wars. •
compared to Dallas. Housing inventory remains low in many major cities across the nation, and Dallas is no exception to that. According to their forecast, the sup - ply and demand dynamics will likely push prices north again over the next 12 months. The Dallas hous - ing market still favors sellers over buyers. Dallas home values have gone up 3.2 percent over the past year and the latest forecast is that they will rise 6.1 percent over the next 12 months. Dallas-Fort Worth-Arlington Metro home values have gone up 4.5 per - cent over the past year and the latest forecast is that they will rise 4.8 per - cent over the next 12 months. Dallas and the entire metro area market is so hot that it cannot shift to a complete buyer’s real estate market, for the long term. In a bal - anced real estate market, it would take about five to six months for the
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Insurance for the Real Estate Investor
Why realprotect?
What We Do:
Property & Liability Insurance Lender Compliant Coverage Online Portfolio Management Instant Proof of Coverage Pro-Rata Coverage - Only pay for coverage for the days you need it! Coverage For: Buy & Hold Fix & Flip 1-4 Family Homes Apartments Tenant Insurance Programs Commercial Properties Business Insurance
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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Multifamily Smart Home Automation Solutions from SmartRent
by Demetrios Barnes, SmartRent
I n 2017, SmartRent set out to cre - ate software targeted specifically to the multifamily industry to allow users to manage an array of smart home devices and other third-par - ty software using just one platform. Today we are proud to offer an enter - prise solution that allows owners, operators and staff enhanced visi - bility, better control and increased efficiency in day-to-day property operations while providing residents the ability to manage multiple smart devices and enjoy the benefits of smart home automation using one app. With 70,000+ smart homes (and growing) installed across the Unit - ed States, SmartRent continues to expand its reach and develop robust product offerings and integrations for our clients. We’ve secured partnerships with industry leading investment funds, such as the Amazon Alexa Fund, which have provided addi - tional development and technology resources, enabling us to continue creating and offering new features. We continue to introduce indus - try-leading innovations, such as self-guided property tours and access control systems to enhance your return on investment and reduce common operational ineffi - ciencies that pain property owners and managers. In addition to our
mobile-friendly web platform, we also offer a native mobile appli - cation that allows property own - ers and staff to audit work orders, manage access, move residents in or out, and more, all from their mobile device. The SmartRent platform allows for efficient management of a suite of IoT devices that can be easily transferred to end users, which reduces the need for go-backs and warranty claims, adds value to your properties and provides an attractive upgrade for residents. SmartRent offers a wide range of solutions, including complete community-wide access control through a seamless keyless experi - ence and management dashboard; asset protection using smart sen - sors, alerts and notifications; prop - erty optimization utilizing automa - tions and scheduling features; the ability to offer self-guided tours for vacant units and more. RESIDENT BENEFITS The smart home automation industry has received an over- whelmingly positive response from consumers who experience effi - ciencies, such as energy and cost savings, through IoT devices. Many consumers already enjoy the ben -
efits of automation in their daily lives through connected devices like speakers, locks, doorbells, cameras, and thermostats, and this is just the beginning. Industry research esti- mates that by the end of 2023 there will be more than 6.4 billion smart home devices in use, accounting for approximately $157 billion in spend - ing. However, there is an inefficien - cy in these platforms: they require users to switch between multiple apps to complete IoT device-related tasks. In addition, renters are pre - cluded from enjoying the benefits of many of these devices because they are not able to install in homes or apartments they do not own. Smar - tRent tackles these issues head on by offering IoT devices and services for rental properties, enabling rent - ers to experience smart home bene - fits they are willing to pay a pre - mium for. In a recent study, 86% of renters indicated that they would be willing to pay more for a unit outfit - ted with automated or remote-con- trolled devices. With SmartRent, residents have access to the auto- mations and connectivity they desire and the ability to control their home through just one app. • Find out how you can turn your property into a connected commu - nity by contacting SmartRent today!
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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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