INVEST R A Think Real ty Publ icat ion SPONSORED CONTENT
JASON ENGELMAN Freaky Fast Home Buyers
GARY PINKERTON Aligned Strategic Wealth
JOSH SHEIN Trius Lending Partners
MARCO SANTARELLI Norada RE Investments
Matt Rodak and Fund That Flip Supercharge Real Estate Businesses
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We write loans so you can write your success story. Relationship-based financing for experienced real estate investors.
Up to 70% LTV and 85% LTC Up to $25M across multiple projects Over 93% customer return rate Close in as little as 5-7 days
“Once we met Fund That Flip, they took our business to the next level and helped us grow.”
Timario Gayton Owner of T&T Express, LLC
Fund That Flip • email@example.com • 646-895-6090
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Supercharge Your Real Estate Business with a Diverse Capital Stack
by Matt Rodak, Fund That Flip
A s a real estate investor, you’re constantly looking for ways that you can grow your real estate business. Some investors may be perfectly content to maintain their current deal flow, but if you’re look - ing to reach the next level of scale, it’s valuable to know how you can use different types of funding source for different types of projects and strategies. Having a diverse capi- tal stack can be a game-changing strategy for increasing your veloci- ty. To best understand how you can create the optimal capital stack for your business, it’s important to be well-informed of the various sources of funding you can utilize, the pros and cons of each, and how they can fit to your unique investing plan. To decide how to use this strat- egy, it’s important to start with the basics: what exactly is a capital stack? “Capital stack” is a term used
money is often more flexible than a bank loan or a hard money lender, so this could be a great choice for an investor who may not meet the exact criteria that other lenders require. Terms and rates can be more agree- able because the lender is often an individual and is not tied to institu- tional lending boxes or standards. If you operate at a relatively low velocity and have time to manage relationships, private money might be a favorable addition to your capi- tal stack. The flexibility that comes with private money could be a huge selling point for some borrowers, but it is still important to consider some of the drawbacks that come with it. As private money is often relationship-based, it can require a hefty amount of networking that may demand a lot of time on the part of the borrower. Furthermore, private money is often much more
to describe the various sources of financing a real estate investor has access to deploy into their real estate investment projects; these most often include private money, hard money, conventional bank loans, or personal funds. Though there isn’t a perfect recipe for building a capital stack, each source of funding has its benefits, and understanding the dif - ferences can have a huge impact on the speed of execution and ultimate- ly the profitability of your projects. Oftentimes, the best capital stack is one that aligns with your exit strat- egy--or strategies!--and offers the most flexibility for your business. PRIVATE MONEY Private money refers to funding that typically is based on a relation- ship between two parties, such as a friend or family member (think of the proverbial “rich uncle”). Private
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finite than other sources of fund - ing, meaning that you as a borrower can run into limitations or having to manage multiple private lenders at once. If scaling your business is the goal, private money is likely not a sustainable option as a stand-alone source of funding. Private money also carries additional risk com- pared to other options; because private lenders may not be bound by legal obligations, the lender’s personal preferences and opinions may start to have an impact on your investments. Despite these limita- tions, private money can be a great way to get started or to maintain your current velocity. BANK LOANS The bank is often one of the tra- ditional places people look when in need of a sizable loan, and while it is certainly an option used by many real estate investors, it’s important to know when it is most appropriate
to use a bank loan for your business. One of the biggest upsides to using a conventional bank loan is that it often has much lower interest rates than private or hard money. More- over, it’s often structured over a longer period of time than a short- term loan, meaning you have more time to pay it off. A bank loan is often used by investors who use the BRR- RR (Buy, Rehab, Rent, Refinance, Repeat) or buy-and-hold strategy. Once the project is rehabbed in a BRRRR or buy-and-hold, often with short-term funding, an investor will pay off their bridge note with a lower-rate conventional bank loan. When it comes time to do a cash-out refinance using the BRRRR strate - gy, investors can take out a mort- gage from the bank in order to turn their equity into cash and purchase a new property. The steady stream of income from these rental proper- ties can go towards these long-term mortgage payments at a much lower
interest rate. Similarly, investors who buy-and-hold might use a bank loan to pay off the bridge loan used to secure the property; this typical- ly can enable them to pay a lower rate than the bridge loan, and they then have added a source of passive income from their buy-and-hold. While a bank loan can be an attractive option in some circum- stances, there are quite a few cave - ats to consider before choosing a conventional bank loan to finance your next project. Banks are noto- rious for taking their time when underwriting a deal. In fact, many investors can complete most of their rehab in the time it would have taken them to get funding from the bank. A bank will also have stricter require - ments compared to other methods of financing, such as a credit score threshold, an extensive record of his- torical performance, property con- dition requirements, and extensive administrative paperwork. Moreover,
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If you’re looking to grow your real estate business, it’s important to consider howa diverse capital stack could benefit your current investing strategy. “
cess much less stressful and oner- ous. As a business partner, they’ll work to understand the details of your project as well as you do, giving you a personalized underwriting and closing experience. While hard money loans are an attractive option for investors look- ing for fast, flexible capital, they do come with some potential cons you’ll want to consider. The main con of using a hard money lender is typically a higher interest rate; due to the convenient, short-term nature of these loans, the interest rates do tend to be more than those of a bank or private money. As a result, it’s important to make sure you’re confident your project can be com - pleted and become profitable in that short time frame. In this way, a good lender will be transparent about whether your project is profitable and beneficial for both of you, even if it means they pass on that partic- ular deal. The reliability and speed of access to large amounts of capital and stress-free underwriting makes it a perfect choice for many investors who specialize in residential rehab at high volume. If you’re looking to grow your real estate business, it’s important to consider how a diverse capital stack could benefit your current investing strategy. Private money, traditional bank loans, and hard money all have unique pros and cons and depend - ing on your business, any of these options--or a combination of the three--can be useful for you as you grow your business. By understand- ing the main sources of capital and when to deploy each one, you can create the optimal capital stack for your business and take it to the next level of growth. •
MATT RODAK, FUND THAT FLIP
they can also lack the flexibility that a high-velocity real estate inves- tor needs when executing multiple projects and strategies at once. They can be useful when financing longer-term and lower-risk projects, but naturally, banks may not share your urgency when financing your investment project. HARD MONEY The last major source of funding are what are referred to as “hard money loans,” sometimes used synonymously with “short-term bridge loans.” This method of fund- ing provides a short-term lending solution that real estate investors use to finance their rehab and new construction projects. These loans are provided by lenders who typically specialize in real estate rather than a traditional financial institution or independent investor. This financing method is most often leveraged by seasoned real estate investors who
value speed, reliability of funds, and are looking to increase the velocity of their real estate investment busi- ness. Many successful real estate investors find themselves most prof - itable when they can move quickly on projects, keep capital in circula- tion, and use leverage. In this way, one of the most notable advantages of using hard money is the ability to grow your real estate portfolio without running into a funding short- age; while private money is often limited, hard money lenders tend to have an expansive pool of capital that can help you fund more projects and scale your business. More- over, banks often miss the mark for high-volume real estate investors due to their rigid underwriting stan- dards. A good hard money lender will focus on the asset, the scope of the project, and the borrower’s investing experience rather than their finan - cial position or liquidity, making the underwriting and administrative pro-
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FINANCIAL FREEDOM STARTS IN YOUR MIND NOT YOUR WALLET Rich vs. Poor Mindset: Which Do You Have?
by Marco Santarelli, Norada Real Estate Investments
So many people do not obtain financial freedombecause they do not have one thing: the right mindset. The rich and the poor not only differ in howmuch they have in their pocket, but also in how they think.
Rich Mindsets Always Focus on Positive Attitude. Poor people lack a positive attitude. Focus only on the positive; a negative attitude can hinder good things to happen to you. Rich Mindsets Do Not Flaunt Their Wealth. Poor people show off and live beyond their means. Be content with what you have while you build businesses and portfolios. Rich Mindsets Understand the Value of Education. Poor mindsets are oblivious to the importance of constant learning. You must always learn and update your skills throughout your life. Rich Mindsets Are Better at Risk Management. Poor mindsets often live in fear of taking risks. Be careful to manage risk. Protect yourself from over- spending money on wants. Rich People Build Multiple Streams of Income. Poor people put all their eggs in one basket by being depen- dent on one stream of income. Devote your time to planning your financial future. Rich Mindsets Believe in Saving, Investing, and Multiplying. Poor mindsets splurge on materialistic things and end up saving nothing to invest. You should save about 10 to 20 percent of your net income every year to invest. Do not put off saving for the future.
The Rich Believe “I Create My Life.” The Poor believe “Life happens to me.” If you want to create wealth, it is imperative that you believe that you are at the steering wheel of your life; that you create every moment of your life. The Rich Play the Money Game to Win. The Poor play the money game not to lose. Your goal is to have massive wealth and abundance. Be intentional.
Rich Mindsets Are Committed to Being Rich. Poor mindsets are uncommitted to being rich.
Be totally clear and committed to creating wealth. Do “whatever it takes” to have wealth as long as it is moral, legal, and ethical. Rich People Think Big! Poor people think small. It is time to stop hiding out and start stepping out. It is time to stop needing and start leading.
Rich Mindsets Are Bigger Than Their Problems. Poor people are smaller than their problems.
The secret to success is not to try to avoid or shrink your problems; it is to grow yourself so you’re bigger than any problem.
Rich People Focus on Opportunities. Poor people focus on problems.
Take responsibility for creating your life and have the mindset, “It will work because I’ll make it work.”
If youwant to get rich, then you need to change yourmindset and begin to see things from the perspective of thewealthy.
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7 Tips to Grow a Flourishing Portfolio in Your Own Backyard
CONTRIBUTING TO THE RENEWAL OF VIBRANT COMMUNITIES
by Josh Shein, partner, Trius Lending Partners
F or more than 18 years, Partners has funded loans for residential investment properties, fix-and-flip and rehab projects, and commercial properties, contributing to the renewal and growth of vibrant communities throughout the Mid- Atlantic. From our vantage point, and especially our role in enabling Baltimore’s tremendous growth, we have learned more than a few lessons and want to share some of our top tips with you. TIP 1 Work Local & Think Local Know Baltimore. Each city is Baltimore-based Trius Lending unique and ours is no different – things can change from block to block. To be successful, you need to know the nuances of each neigh- borhood where you are considering investing. Online research is easi- er than ever but talking with other people will give you the edge. To find hidden pockets of opportunity, research closed sales histories to understand prices and returns as well as the risks and pitfalls of pick- ing the wrong areas. Always remem- ber, bad renters and bad buyers will hurt you. TIP 2 DevelopYour Network Relationships are everything so keep building your network of con-
tractors, realtors, wholesalers, title companies and other investors. Your competition is not your enemy but a fountain of knowledge. TIP 3 It’s All About Leverage! Learn how to optimize other people’s money and your own. Is it better to invest all your cash to buy property or does borrowing some of the money free cash for other investments? If you have $100K, will buying one property yield a higher return than purchasing four proper- ties with a lending partner? Under- standing the power of leverage and the different funding options to maxi- mize your investment and profit. TIP 4 KeepAmbition Realistic No one makes $50,000 on every flip – especially at the beginning. ROI is key. Run proformas and cal- culate projected ROIs. Key metrics include purchase price, seller’s contribution and rehab budget. Your network comes into play with the right, or wrong, rehab budget and buying right is essential. It is up to you to do your due diligence and compare estimates to see what was missed or incorrect. TIP 5 For Flipping You don’t have to wait until the rehab is finished to sell the home.
Pre-sell the home with “Coming Soon!” signage and invest in stag- ing to enhance the right buyers and shorten the sales cycle. The quicker the sale, the better the return. TIP 6 For Buy & Hold Add management companies and Section 8 administrators to your net- work. Always qualify your tenants. Budget for background and credit checks, as well as tenant screening services recommended by your net- work. You can also find them online. TIP 7 Have a Plan &Work It! Find your focus: single or multi- unit; flip or rent; residential or commercial; land or development. It is easier to grow as you focus your expertise, contacts and connections around similar type projects. Our tried and true formula to grow your portfolio and wealth is to continually buy, while holding one and flipping the other two. Each flip provides more capital to invest. Keep working the formula and diversify to keep the cash flowing to you.
Our teamwould love to be in your network and help you grow and learn. Call me at 410.580.0870, email firstname.lastname@example.org or visit www.TriusLendingPartners.com.
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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
( 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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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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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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OUR AUDIENCE IS WAITING FOR YOU.
Each week, 1,300+ real estate investment aficionados download our podcast across 16 of the medium’s top platforms. Think Realty Podcast is their source for the latest industry trends, hard-hitting insights and news. Contact us at email@example.com to reach our ever-growing audience now.Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16
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