TM I N FORM . I NS P I R E . E DUCAT E . EMPOWE R .
On the Radar: California Investor Exodus? MARKETS & TRENDS
The Case for Cause Capitalism FUNDAMENTALS DIY Deals: How to Use Self-Directed Funds STRATEGY
Invest with Purpose
IVAN ANZ BRINGS PHILANTHROPY AND REAL ESTATE INVESTING TOGETHER
JANUARY 2021 $5.95 U.S. :: $6.95 CAN
PUBLISHER & CEO Eddie Wilson
EDITOR-IN-CHIEF Kelli White
SALES MANAGER Rodney Halford RHalford@ThinkRealty.com
FULFILLMENT COORDINATOR Blair Pierce
DESIGNER David Allen Rodriguez
CONTRIBUTERS Lorraine Beato Joe Dyton Jason Engleman Ellis Hammond Bruce McNeilage
Aaron Norris Gene Powers Marin Scott
Jonathan Spears Steve Streetman Shawn Tiberio
HEY! LET’S BE FRIENDS! GET SOCIAL. STAY CONNECTED.
Don Wenner Eddie Wilson Ingo Winzer
COVER PHOTOGRAPHY Philanthroinvestors ® Board of Advisors
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2 | think realty magazine :: january 2021
FROM THE EDI TOR- IN-CHI EF
A People Business
elcome to the first edition of Think Realty Magazine in 2021! It goes without saying how exciting a new year can be, but given all that happened last year, 2021 could very well bring more anticipation than ever. W
Our cover person couldn’t be more attuned to philanthropic
efforts—he even coined the term
“philanthroinvestor!” Ivan Anz with Equity & Help shares his story about how shifting his mindset to one
of giving brought him self-satisfaction and a more-than-sustainable business model. Everything changed for Anz when he morphed from an all-about-the-money mindset to a philanthropic focus. Read his inspiring story on page 14. And Think Realty’s CEO Eddie Wilson explains his phrase “Cause Capitalism” in our new Resident Expert feature. Each month, a Think Realty Resident Expert will write on an invaluable REI topic— just one of the additions to Think Realty Magazine in 2021! The Think Realty team is excited to kick off a new year with each of you and see what we can do when we are informed, inspired, educated, and empowered to help others.
Resolutions might look a bit different considering the uncertainty we have faced, but when it comes to the power of real estate, investors like YOU can be resolute in helping others while building your real estate investing businesses. And that is something to be excited about! The theme of this issue is Philanthropic Investing, and as monthly contributor Steve Streetman writes, shouldn’t all investments be philanthropic? We think so. This issue is packed with inspiring ways to give back while building your real estate investment business, which is, at the core, a people business. In fact, many entrepreneurs have found their business grows the more they give, bringing truth to the adage, “you get what you give.”
Keep Going!
KELLI WHITE, EDITOR-IN-CHIEF
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CONTENTS
INSIDE THIS ISSUE
14
COVER FEATURE
Ivan Anz brings philanthropy and real estate investing together by Joe Dyton
INVESTWITH PURPOSE
4 | think realty magazine :: january 2021
STRATEGY 56 Developing New Strategies
THINK REALTY 6 News & Events 8 Contributor Corner: Meet Ingo Winzer
Housing prices and student debt push builders to innovate by Bruce McNeilage
58 Impact Investing
Shouldn’t Every Investment Be Philanthropic? by Steve Streetman
INVESTOR STORIES 10 Success Story: Arianne Lemire
12 Presidents’ Circle
60 Tips to Investing in Vacation Properties Ensure your investment is all sunshine—for your guests and for your ROI by Jonathan Spears
Featured Members: Gabe Clements & Eitan Fishbein
FUNDAMENTALS 22 Make Millions with Private Lending
64 Self-Directed Fix and Flips
How self-directed deals can build funds by Lorraine Beato
How this source of capital can change your business and your life by Jason Engleman
66 How Tragedy Turned a Real Estate Meetup into Family
26 The Case for Cause Capitalism
It’s smart to invest in property, essential to invest in community by Ellis Hammond
A profitable, yet giving, business model is a win-win by Eddie Wilson
28 Cause Marketing
MARKETS & TRENDS 70 Market Spotlight: Dallas Price Bubbles and the “K” shaped recovery by Fred Heigold III
Devise a business model to benefit others and your bottom line by Shawn Tiberio
30 3 Steps for Renewing a Lease While Raising Rent Weighing the costs of rent increases can help retain tenants by Marin Scott 32 Profit First for Property Managers The best formulas for success can be surprising by Derek Seal
74 Markets & Trends On the Radar:
California Investor Exodus? by Aaron Norris
78 Recovery Prospects
Markets with a favorable renter outlook by Ingo Winzer
35 Sponsored Content: Investor Review
MINDSET 80 The 7 Steps to Financial Freedom
52 Giving Back Through REI
STEP 6: BUILD, GROW, and EXPAND your passive income by Gene Powers
Why philanthropy should be a core part of every REI business by Don Wenner
thinkrealty . com | 5
THINK REALTY
NEWS & EVENTS
Day on the Hill
T
hink Realty and and The Amer- ican Association of Private
estate investors as business owners who support communities and strive to alleviate the affordable housing issue that plagues this nation. They need to be informed of what the real estate investment and private lending industries can do for our country. This initiative started in 2019 when the two organizations each launched a meaningful dialogue with legis- lators, informing them on the real
estate investment industry and how investors can help solve issues in affordable housing and more. Top issues to be discussed are taxation, mortgage licensing, and opportunity zones. Conversations like these can lead to reform, which could benefit not only real estate investors and private lenders, but also communities nation - wide. •
Lenders (AAPL) are advocates for YOU! Members of Think Realty and AAPL plan to return to Washington, D.C. this year to meet with legislators on key issues affecting the real estate investing industry. Throughout this advocacy effort, the biggest hurdle is that legislators do not view private lenders and real
6 | think realty magazine :: january 2021
HOUSTON TEXAS
THINK REALTY CONFERENCE & EXPO
MARCH 26-27 2021
D
o you have real estate property or land that you’d like to extract from your investment portfolio? If you want to unload some of your real estate investment properties and want to help others in the process, did you know you can donate real estate to a nonprofit? Organizations like Kars4Kids will take real estate off your hands, handing the profit over to help kids in need while you reap the write-off. It’s a win-win strategy that is simple to execute. Offering a suite of year-round educational, youth development and mentoring programs, Kars4Kids brings together home, school and community to make a lasting impact on children. The organization has helped thousands of kids in its 20 years of operation. Visit https:// www.kars4kids.org/real-estate/ for more details and check out Think Realty CEO Eddie Wilson’s article for more on real estate donation as a strategy on page 26.
Did You Know?
Think Realty Honors Nominations Open Now!
E ach year, Think Realty honors leaders in the industry who exemplify the best in real estate investing. Not only have the winners achieved great success in their own right, but they also demonstrate Think Realty’s mission of being trusted resources within the real estate investing industry. Know someone who fits this description? Nominate them today! Nominations are open for the 2021 Think Realty Honors through June. Pictured: Think Realty CEO Eddie Wilson (left) with 2020 winner Bruce McNeilage
Go to thinkrealty.com/honors now and enter your picks! Winners will be featured in Think Realty magazine, on social media, and celebrated at a special awards ceremony – stay tuned for more details!
thinkrealty . com | 7
THINK REALTY
NEWS & EVENTS
The Contributor Corner
Meet IngoWinzer
Ingo Winzer has been submitting market analyses to Think Realty for years. We are grateful for his straightforward approach in which he highlights a trend and offers a list of markets that fit it. You can see his market monitor write-up every month in Think Realty Magazine, and it is always a trusted takeaway. (See this month’s column on page 78.) We asked what drove him to the field of real estate market analytics and why he keeps doing it.
Real estate analysis is at the intersection of statistics, social changes, and psychology. And after 30 years I still haven’t figured it out! It doesn’t work with strict formulas—it’s not reallymathematics, there are data limitations. There is a lot of room for creative thinking and a new challenge all the time.”
—Ingo Winzer
8 | think realty magazine :: january 2021
THINK REALTY SUPPLIER
MEMBER PERKS!
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Here are just some property types you can search on this invaluable tool:
W hen it comes to real estate investment properties, do you think finding hidden gems is daunt - ing or time consuming or virtually impossible? The answer is not at all! Think Realty Supplier Foreclosure. com offers an easy-to-use platform with different listing types that you can pursue in different ways. It couldn’t be simpler to find your next deal. Your property search can be per - formed at the state, county, and city levels—even the exact address and/ or zip code—so that your house hunt hits the ground running. Each listing is complete with asking price, exact location, number of beds/baths, prop - erty type (single-family foreclosure, etc.), available photos, tax roll infor - mation, helpful neighborhood, and school district details and so much more. Foreclsoure.com provides as
much information as possible so that you can make the most informed deci - sion possible. Foreclosure.com updates its nation - wide database of foreclosure listings at least twice EACH DAY! Prospective homebuyers and investors can find the freshest, hottest deals on the Internet. In fact, most information on Foreclo - sure.com comes direct from hundreds of corporate sellers and multiple government agencies so that you can score the deal of a lifetime! With customer service available five days a week, videos explaining listing types, free email alerts, and search - able maps, Foreclosure.commakes the path to your next investment prop - erty easy to navigate. Start searching today! Think Realty members receive a 7-day free trial. Sign up at www. thinkrealty.com/supplier-discounts. •
• Pre-foreclosures • Short Sales • Sheriff Sales • Foreclosures • Bankruptcies
• City Owned • Rent to Own • As-Is Deals • Fixer Uppers
Find Your Next Deal with Foreclosure.com
thinkrealty . com | 9
INVESTOR STORIES
SUCCESS STORY
Success Story: Arianne Lemire
A DREAM OF MAKING MINIMUM WAGE TRANSFORMED TO PHILANTHROPICAL WEALTH
oming from a background where homeownership and
unable to do what they really wanted to — be there for their loved ones especially when they needed them the most. They started looking for ways to have the time and financial freedom to see family and found real estate investing. They saw that with real estate investing, it was possible to have passive income to pay for their needs, wants, and more. They made a plan
C
wealth seemed out of reach, Arianne Lemire did not know that real estate investing would be a future for her. Fast forward to today, Arianne and her husband Chris are not only able to help support their families with their real estate portfolio and business- es, but are able to do something that seemed impossible to them just years ago. They’ve given over $100,000 to charities and causes that make a dif - ference in the US and internationally. Arianne was born in the Philip - pines and used to dream of being able to make minimum wage to help support her family. In college, her family moved to New Zealand, where she got a bachelor’s degree in Psy - chology and Education. Her younger sister has autism, which led to her completing a Master’s degree in Speech Language Pathology. After graduating college, she met her husband Chris and moved to the U.S. where they started their careers as a speech language pathologist and software developer, respectively. Then they realized that the life they had did not allow them to spend time with both sides of their families. Ari- anne’s family lived in New Zealand and the Philippines, while Chris’s family lived in Florida. They felt trapped in the nice “American Dream” they careful - ly built. It is what they thought they wanted. They had great jobs yet were
to achieve time and financial freedom in
five years. They focused heavily on paying their student loan debt off first and building a “war chest” so they could start investing in real estate.
In just two years, they paid off their debt and built a war chest. After six months of consistent - ly submitting offers, they bought their first real estate investment, a small townhouse for $55,000. They ran the numbers like it would be a rental and ended up “house hacking” it. They became their first tenants! They paid themselves as if they were their own renters for two years, to instill discipline and treat real estate like a business. In two years, they sold that rental for a
$40,000 profit. Plus, it was tax-free since it was technically their primary residence! That profit went straight into continuing to build their busi - ness and real estate portfolio. Today, Arianne and Chris have several arms of their real estate investment businesses. They have GH Houses, a residential real estate investment company that flips and wholesales 100+ houses a year. They also have Lighthalzen Cap - ital, a multifamily investment firm
10 | think realty magazine :: january 2021
that helps everyday people have access to investment opportunities that used to only be available to pri - vate equity firms and larger institu - tions. They have ownership in 1,600 multifamily units in the southeast that provide passive income. In 2020, they founded Wealth Gym, an education company that empow - ers others to master their finances, build wealth, and achieve true time and financial freedom. Arianne and Chris are very pas - sionate about using their resources to support amazing charities and causes that make a positive impact in local and international commu - nities. One of the causes they passion - ately support is a local charity called Children in Crisis that cares for children who unfortunately don’t have anyone who can care for them. Usually, children who have to go to foster homes not only have to go through the traumatic experience of being removed from their home, but then shortly after, they have to part ways with their siblings who go to different foster parents. Children in Crisis provides group homes, foster parents, and resources for siblings, so they aren’t separated while they wait for their home. Emerald Coast Children’s advo - cacy center is another local chari - ty Arianne and Chris support. This organization provides therapy and support for children who suffer from abuse and neglect. It is a safe place for children to voice their concerns, thoughts and emotions, and a place for them to be heard, get support, and hopefully heal. Another cause dear to their hearts is Emerald Coast Autism Center, a local nonprofit that serves children with special needs and helps them achieve the level of independence they are capable of. One of Arianne’s big
giving goals is to be able to help cre - ate a sustainable community where adults with special needs can have a safe working and living environment. Being able to not only provide for their families, but support caus - es that make a positive impact is the main reason Arianne and Chris started their financial education company Wealth Gym. “Once we saw what time and financial freedom allowed us to do— to pursue our passions and help oth- ers with our gifts—we realized that if we can help MORE people do that, the ripple effect of those people can do more good for the world than we could do on our own, and that’s when Wealth Gym was born. We want more people to have the time and financial freedom to pursue their passion and purpose,” Lemire said. “My definition of wealth is having the freedom to do what you want with your time, without having to worry where the money’s going to come from. Through the years we saw that so many people just didn’t know how to manage their finances
to grow wealth — after all most peo- ple are never taught that growing up, including us. We stumbled through it ourselves and we want others to have a more direct path with less trial and error. We want Wealth Gym to be that safe community where people can learn, talk freely about money, which can be a taboo topic, and exercise their financial muscles to build passive income and achieve true wealth. Building financial habits is what we heavily focus on. Will - power will only carry us through so much. If we build great financial habits, then it becomes easier and at some point, almost automatic to build passive income and wealth.” Through Wealth Gym, and creating free content for her YouTube channel Ask Arianne, where she shares what she’s learned about money and real estate investing, she aims to empow - er one million people achieve time and financial freedom so they can live an abundant life with their fami - lies, and have the time and resourc - es to share their unique passion and purpose with the world. •
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INVESTOR STORIES
PRESIDENTS’ CIRCLE
FeaturedMembers: Gabe Clements & Eitan Fishbein
B usiness partners and Think Realty Presidents’ Circle members Gabe Clements and Eitan Fishbein’s real estate investing story began in 2016 when they met at a local REI event. They hit it off immediately thanks to a shared passion other than real estate— aviation. “We hit it off when I heard Gabe was a pilot and he was looking to do more flips,” Fishbein said. “I love aviation and was looking to expand my business. Gabe had been flipping houses before, but not full time and when we learned more about each other we realized our skill sets were very com - plementary. We spent about six months strategizing and gearing up for business before we did our first deal together. Things quick - ly snowballed and it feels like an eternity that we have been working together.” In just a few short years and $5,000 each in start-up money, they have now flipped more than 100 properties and have grossed several million dollars. But more than assets have evolved on their entrepreneurial journey. Clements and Fishbein said they have evolved as individuals and together as a company.
G abe C lements with his wife B rooke
12 | think realty magazine :: january 2021
“In the beginning, we were anx - ious about passing on an opportu- nity to make money. As a result, we weren’t as focused and disciplined as we needed to be to scale our business. We now have a minimum deal threshold and are focused on our bottom line not just in dol- lars, but in time. Separately, we have developed as salespeople and as a process-oriented business. Every time we come up with a new marketing, sales, construction, or hiring plan, we first evaluate how we can systematize it so that it can be repeated by our team. No idea is truly great unless it can be system - atized or efficiently delegated to our team members,” Fishbein said. With five employees at their com - pany, Fishbein and Clements could often benefit from a larger team but have learned a lot about human resources and the challenges asso - ciated with finding the right people for the right job. “We have hired a couple doz - en employees and currently our company employs five people, including both of us. That means that we have let go more people than we have kept onboard. We have learned that just because the right person for the job hasn’t come around yet, doesn’t mean they won’t if we don’t keep looking. That is just one example of trying something repeatedly and continu - ing to try until it works. Don’t give up! As our business continues to expand, we are setting our sights on making an even bigger impact by hiring the right people to fill the right seats so we can reach further throughout our community.” Clements and Fishbein said they joined the Presidents’ Circle because of Think Realty’s owner and CEO Eddie Wilson, and they have realized that the REI industry
E itan F ishbein with his wife E lanna and daughter L eora
is truly a people business. “There is a huge network of businesspeople who we don’t even know we want to meet. To be part of the Circle, members must add some value to the group, and sometimes we don’t even know what that value is until we meet. Some of the best ideas we have come across in business have been by accident!” they said. But other great ideas are very much intentional—like giving back and helping others. “Philanthropy has been the cor - nerstone of our business,” Fishbein said. “Gabe and I have always set our mission to help others. Some-
times our sellers are the ones who we help the most—whether it’s helping them with what feels like an insurmountable challenge or helping someone find a place to live. However, our true philan - thropy has been manifested by our commitment to two special organi - zations—The Caring House Project and the Final Frontiers Charity. We have been honored to build sev - eral houses in Haiti for the home- less as well as sponsoring dozens of children in Central America. It is only when we are able to help others that we become wealthy ourselves.” •
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COVER STORY
IVAN ANZ
Ivan Anz brings philanthropy and real estate investing together INVEST WITHPURPOSE
BY JOE DYTON PHOTOS COURTESY OF PHILANTHROINVESTORS ® | BOARD OF ADVISORS
14 | think realty magazine :: january 2021
“IWANTTO HELP PEOPLE ACCOMPLISH WHATTHEY OTHERWISE WOULD NEVER BEABLE TO.”
IVANANZ FOUNDER OF PHILANTHROINVESTORS ® AND EQUITY & HELP
thinkrealty . com | 15
A T SOME POINT IN HIS CAREER, Philanthroin - vestors ® founder Ivan Anz realized he was just “investing money for money.” It wasn’t always like that, however. Anz had an entrepreneurial spirit long before he created Philanthroinvestors, which combines traditional venture capital financing with philanthropic principles to achieve social impact. He started his first venture at seven years old, when he leased his go-kart to the children in his neighborhood. Anz fol - lowed that by buying candy and selling them at a profit. “It was nice to get experience being an executive, even at seven years old,” Anz said. “I created my first business and the first thing I did was give a job to someone else. That’s the job of an executive and an entrepreneur.” That mentality started to slip away in 2009 when Anz entered the specu -
lative investment world. He’d created four businesses and started to use the profits to make investments. It didn’t take long for Anz to feel like he wasn’t an entrepreneur anymore. Suddenly, his focus was on taking money, turn - ing it into more money so he could buy high-priced items like sports cars and mansions. “The reality was I went from being involved with my team, clients and real life to being a guy meeting once a month with my (companies’) CEOs,” Anz said. “I was the guy behind a computer, buying and selling things. As the numbers went up and down, I felt depressed.” Even turning $30,000 into $238,000 in a six-month span couldn’t help lift Anz’s spirits. He still felt unfulfilled and that his work lacked purpose. It’s perhaps no surprise that the $238,000 Anz created became $7,000 in three weeks.
“Lacking purpose gives you a lack of engagement,” Anz said. “When you have less engagement, you have less control and you put the responsibility in other people’s hands without taking any. Then you have the possibility to lose it all, and that’s exactly what happened.” The dramatic financial loss led to a personality change in Anz. He became angrier and realized he wasn’t him- self anymore; he was merely a guy who was too focused on money. “When that happened, I realized I needed to create something good,” Anz said. “Something that would take the entrepreneur and the investor out of the sensation of money for money.” APHILANTHROINVESTOR ® IS BORN Anz’s initial step away from the “money for money” investment model took him toward real estate. He tried to buy lots in Argentina for $20,000, develop them and sell them for $50,000. He wasn’t having much luck selling lots and saw his funds shrink- ing again, which started to bring his mood back down; he also felt the “money for money” mindset creeping up again. Just as Anz realized he had to do something different, he met a family and things changed for him. The family lived in the neighbor - hood where one of Anz’s lots was, and children expressed to their father that they wanted to live there. When the father told Anz he couldn’t afford the place, he suddenly found his calling. “I said, ‘you know what? This is it, this is what I want to do with my life,’” Anz said. “I want to help peo - ple accomplish what they otherwise would never be able to.” For the first time, Anz had an opportunity to make an investment with a goal of more than just making money. Sure, he would get a return,
16 | think realty magazine :: january 2021
I created my first business and the first thing I didwas give a job to someone else. That’s the job of an executive and an entrepreneur.” –Ivan Anz but it was more important to him that he’d be helping this family. So Anz told the family that they could give him what they could for a down pay - ment, and he’d finance the lot for 10 years while the family paid him $500 a month as they built their home. “Seeing the entire family light up and the grin on their faces hit my heart,” Anz said. “They gave me my first moment as a Philanthroinves - tor ® . That was one of the most beau- tiful moments I had as an entrepre- neur.” After seeing how much joy Anz’s investment brought that family, he decided to bring the Philanthroinvest - ing ® model to the United States. He made his first business trip to the U.S. and met with friends in the real estate industry to figure out how he could do what he did with his private neighbor - hood in Argentina. From that meeting, Anz’s real estate Philanthroinvest - ing ® company was born using two key components—equity and help. These two qualities also became the name of his company, Equity & Help. “Individuals in 13 countries can grow capital while they’re helping families in the U.S. own their Hap- pyHome™,” Anz said. “I created the EasyHomes™ and HappyHomes™ programs because a major problem in the U.S. is that 51 percent of Ameri - cans don’t have access to a traditional mortgage.” Anz noted that more than half of
Americans not having access to a tra - ditional mortgage could lead to family instability. Children have a tough time maintaining friendships because their families often have to move because their landlord sold the property to someone who doesn’t want to lease it anymore. This leads to a lot of families constantly moving from one neighborhood to the next. “Another problem I found was that there are between 50,000 and 100,000
foreclosures a month in the U.S. It’s something I needed to learn more about to help improve the situation.” One tactic Anz learned was the Laws of Betterment—if he improved someone’s life, his would improve, too. Philanthroinvestor ® was essen- tially born from this philosophy—peo- ple investing money and time so they can engage emotionally to promote human welfare, all while earning a financial return.
thinkrealty . com | 17
“The definition of financial freedom is to have a purpose--to be engaged, knowledgeable, and in control of what’s going onwith your money.” –Ivan Anz
“[Philanthroinvestor ® ] are people willing to sell all of their Ferraris, airplanes, yachts and all of that, have just what’s really necessary in life and invest the difference to improve someone else’s life, while making a financial return,” Anz said. Anz views the HappyHomes™ pro - gram as a team effort. The company, Philanthroinvestor ® and families work together to improve neighborhoods one “happy home” at a time. So while Philanthroinvestors assists families by becoming their private lender, the family is working to improve the prop - erty with their own funds and family cooperation, so when everything’s done, it truly feels like their own. Equity & Help ® is currently working with Philanthroinvestors ® who own more than 400 residential real estate assets and has helped families across 32 states secure a home. “Families have this feel of owner - ship—they created their own Hap - pyHome™,” Anz said. “The concept is simply saving neighborhoods as a team.” INVESTING ISALLABOUT ENGAGEMENT For Anz, investing is more than just writing a check and collecting the returns. There’s a certain level of engagement that needs to be involved if an investor wants to get any satis - faction out of the transaction. Part of the reason many people take the “set it and forget it” approach to invest - ments is because they are promised “financial freedom.” Anz however sees financial freedom a lot differently from others. “If I tell someone, ‘here’s my mon- ey, do what you want with it’, I don’t get the knowledge or have any control to make decisions,” he said. “I don’t get to be engaged; I just gave you the
money and that’s it. “You’re telling me you’ll give me financial freedom, but there’s a contradiction to that. Free - dom is related to knowledge, purpose, and engagement. It’s about the ability to make decisions and have control while living a purpose you enjoy. “Freedom is not being passive and doing nothing—that’s not freedom or happiness—it’s boredom. If someone tries to sell you financial freedom by saying you’ll be doing nothing, an alarm should sound.” Anz’s argument is with the tra- ditional financial freedom mindset comes a lack of engagement and pur - pose and a step into that “money for money” trap again. Plus, investments always come with risk, but truly pas - sive investors don’t have much control over their gains and losses because they handed their financial car keys to another party. There’s not much free - dom in having your financial wellbeing tied someone else’s ability to get you a return on investment, according to Anz. “The first definition of the word wealth was wellbeing, and lacking purpose, knowledge and engagement is not wellbeing at all,” Anz said. “Most people don’t like to talk about the things they have lost. So now, you will blame the guy you gave the [financial responsibility] to, but you’re the one in the bad position. How is that financial freedom?” Instead, Anz defines financial free - dom as having a purpose, as well as
being engaged, knowledgeable and in control of what’s going on with your money. Part of the reason a lot of peo - ple don’t discuss their investments is because they are not knowledgeable when it comes to what’s going on with their finances. “The Philanthroinvestor ® is some- one who actually understands what they’re doing and has control” Anz said. “He’s the CEO and he’s guiding the Equity & Help ® team through his Real Estate Philanthroinvestor ® Con- sultant™ with the decisions he’s making to improve his real estate portfolio. The families he supports have achieved their dream of home ownership; he is investing with a purpose. Not only that, he has CLEAR INVESTMENTS™, which include spe - cific reporting every month.” Under Philanthroinvestors’ mod - el, investors can clearly see each property, who lives there, when they were paid and the return. There are no hard-to-read graphs or unneces - sary data thrown at investors that they have to decipher—that’s what Anz and his team call CLEAR RESULTS™ “As a result of that, you can have a CLEAR LEGACY™, you can tell your child, ‘you know what, I’m a Real Estate Philanthroinvestor ® , and I have helped five families. They will own their home when they finish paying our family 10 years from now, but by helping them, we’re becoming a Philanthroinvestor ® lender for them.’” The other upside of families work-
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ing a turnkey business here. As the trustee, Equity & Help ® will assist with sales for a minimal fee, and the Philanthroinvestor ® becomes officially the private lender. The company will sell the real estate at the investor’s authorized price, including the mini - mum down payment of $1,000 and a 12 percent interest rate for 20 years. “If an offer comes to us that’s dif - ferent than these terms, we’ll call (the Philanthroinvestor ® ) and they’ll have to make a key decision,” Anz said. “You’re the CEO of your real estate portfolio; once the family moves in then we add an extra $40 a month to manage the relationship with the fam- ily and tell them what you want us to. It’s a unique turnkey business.” From a business standpoint, some - one can purchase a home for $40,000 that has an ARV (After Repair Value) of $70,000. The Philanthroinves - tor ® using assistance can sell it for $50,000 and the family can earn the
Equity & Help ® makes this possible because it seeks out close to 5,000 foreclosed properties a week. The company’s internally designed soft - ware can narrow down those 5,000 properties to the best 200 that are worth pursuing. Equity & Help ® purchases the prop - erties and places them in individu - als’ Land Trusts. Basic repairs and cleanup is done, but the company makes sure to note that this work is a “prehab” effort rather than a rehab. Real estate Philanthroinvestors ® then come to Equity & Help ® and purchase a minimum of three land trusts with the underlying real estate in it and become the beneficiary. Meanwhile, Equity & Help ® becomes the trustee of the property for $15 per month. The company markets the underlying real estate and the Philanthroinvestor ® becomes the CEO of their real estate portfolio. Philanthroinvestors ® are purchas -
ing with Philanthroinvestors through Equity & Help ® is that they can be patient with borrowers if something traumatic happens—major illness, job loss, natural disaster, etc. Fami - lies do not have to be worried about getting evicted if they need a couple of months to catch up on their pay - ments. If they have good intentions, the Philanthroinvestor ® will be there to support them. HOWTHE REAL ESTATE PHILANTHROINVESTORS ® MODELWORKS When someone opts to work with Equity & Help ® , they can become the CEO of their real estate portfolio starting by selecting and purchas - ing a package of three homes for $135,000 to $140,000 total ($45,000 each). Philanthroinvestors ® could see their real estate portfolio increase to $170,000 when their properties sell.
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vestor ® ,” Anz said. There are billions of families
remaining $20,000 through “sweat equity.” “They are their own contractors, they’re handymen and ‘do-it-your- selfers,’” Anz said. “They can improve the assets themselves and have the pride that comes with ownership. You’re investing with the purpose of helping families own their HappyHome™ for less than rent. Their monthly payment for these families, including principal interest, taxes and insurance is in the range of $650 a month. Plus, (the Philan - throinvestor) gets to be the CEO of this turnkey business and has us assisting them because they want to
be engaged and have true financial freedom.” Another perk of working with Equity & Help is the minimal time investment. According to Anz, Philan - throinvestors ® can have control, gain knowledge, and feel fulfilled in what they are doing and generate not only capital growth but also cashflow by committing just 30 to 60 minutes a month to make the key decisions using their intellectual efforts and energy. “You can potentially double your net worth in six to seven years while you remain in the driver’s seat and make the key decisions as a Philanthroin -
worldwide who do not own a place they can call home; they are tenants or even worse—homeless. Anz is launching a book and a course for any entrepreneur anywhere in the world who wants to become a Real Estate Philanthroinvestor ® to help families in their areas own their HappyHome™ and improve neighborhoods one home at a time.
PHILANTHROPIC INVESTING BEYOND REAL ESTATE Philanthroinvestors ® has expand -
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or more, using OriginClear ® tech - nology. This is how we will get many people helping to change the state of water in the world and that is what matters most to our Water Philan - throinvestors!” “There are one billion illiterate individuals in the world,” Anz added. “All of these problems are the bottom of the iceberg that we are not seeing and not touching with enough energy and is directing us towards the most expensive and problematic industry in the world—the health industry, which has more than 95 percent of the world’s population with health problems. I realized the problem here is we are trying to send someone to Mars, instead of looking at how to properly manage and administer a planet. What if instead we use our minds and resources to conquer this planet and life?” Questions like those made Anz realize that Philanthroinvestors ® was ready to “go to another level.” He thought it was great that the brand was helping families live in their own HappyHome™, but he realized it was born to also help the planet in a much broader way. He brought on Arte Maren, who has more than 50 years of experience, as CEO of Philanthroin - vestors, Inc. “We decided to expand and said, ‘OK, we’re going to go more into dif-
ferent areas and help the planet,’” Anz said. Anz and his team see the Philan - throinvestor ® identity as the solution to a lot of the planet’s problems that need to be addressed. He believes people who can invest money and time while engaging emotionally to promote human welfare while still earning returns can make a big dif - ference. “Planet Earth can be re-imagined and reorganized toward a far greater ideal; wherein every family will live in their own HappyHome™, where individuals eat organic and pure food, where animals and humans drink pure water and breathe clean air,” Anz said. “The world is able to acquire the energy it needs without wires or electrical structures and where every functional space is cre - ating and renewing its own energy. It is a world without illiteracy. It is a world of wellness, not disease. A world where artistic talent is rec - ognized and developed. A world in which individuals respect their mon - ey as a tool to create an ideal planet and do not throw it away in specu - lation or gambling, a world where true financial freedom is brought about with knowledge, engagement, fulfillment and high purpose. That’s something we need to conquer before going to Mars.” •
ed the arenas in which it encourag - es philanthroinvestments™. These additional industries include water, air, animal protection, the arts, food, energy, literacy, wellness and build - ing stronger structures to prevent earthquakes disasters. Like with real estate, through Equity & Help ® peo- ple can work with Philanthroinves - tors, Inc. and invest in these efforts to help others through improving the planet while they grow their capital and get recurring cashflow. In 2019, Philanthroinvestors ® dis- covered some hard facts: 6,000 kids die every year from water-related diseases and 80 percent of water is released untreated worldwide. The company realized immediately that saving planetary water was going to be the next endeavor for them to explore and support. “We started looking for a company to support our Water Philanthroin - vesting™ initiative, and officially in 2020 we partnered with and licensed our brand to The Water Company For The New Economy™, OriginClear ® which is helping Water Philanthro - investors ® finance a new breed of Waterpreneurs™, all while potential - ly growing their capital and get - ting recurring cashflow,” Anz said. “Meanwhile, these Waterpreneurs are creating a six-figure business that can purify a million liters per month
GROWINGWITHANEWCEO Ivan brings on Arte Maren, who has more than 50 years of experience as an executive coach for professional organizations, franchises, and private companies and corporations, as CEO of Philanthroinvestors, Inc.
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FUNDAMENTALS
CAPITAL
Make Millions with Private Lending
HOW THIS SOURCE OF CAPITAL CAN CHANGE YOUR BUSINESS AND YOUR LIFE
by Jason Engleman
through private lending. During that time, I have observed two facts: Fact #1 Millions of dollars are made every year through Private Lending. Both the lender and the borrower have the opportunity to build wealth. Fact #2 Millions of dollars are lost due to investors not taking advantage of this investment strategy. Whether you are not familiar with this option or you have chosen not to go the private lending route, you are stunting
In 2017, I started my wholesaling business with a whop- ping $20. Seriously, 20 bucks. In 2019, I had the opportuni - ty of a lifetime to purchase my first deal—16 single-family homes. The purchase was a little under 1.5 million dollars. The problem was I didn’t have any money that I could put towards this acquisition. This is when I was introduced to Private Lending. Two investors came to the table with the full $1.5 million. My life was changed forever! Since that first transaction, I have purchased over 100 homes and have built a multimillion-dollar company all
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amount of interaction that it may normally take to complete a real estate investment. SAFE AND SECURE Every investor has a level of risk they are willing to take. For some it is very low while others are open to shooting for the moon every chance they can. There are certain ele - ments of risk in lending like any other investment, but with lending you can negate a sizable amount of that risk. There NO. 2 are several ways to structure your loans, but most are SECURED LOANS meaning the capital you lend is secured by the property that is being purchased. A promissory note is the agreement between you and the borrower. The mort- gage or deed is what secures your loan. Those documents are registered with the county and if the borrower does not pay the loan, you can repossess the property. Most loans are anywhere from 50-70 percent of the actual value of the property, which protects you and your capital. GREAT ROI Loans can be short term or long term, they can have high interest rates or low interest rates, and they can be made in NO. 3
your growth and your financial future.
THE LENDERPERSPECTIVE Most of the private lenders I have worked with are not in the real estate business. They are doctors, engineers, lawyers, tech professionals, or other business owners. They are looking for ways to deploy capital that will work to build wealth for them. They are passive investors not looking to be involved in the day-to-day operations. If you have capital and you are considering investing in real estate, lending is a good possibility for these reasons: NO. 1 LESS WORK, FEWER HEADACHES If you lend money to a real estate investor instead of purchasing a home for yourself, you lower the responsibil - ity and risk that you take on. If you don’t own the property, you don’t have to deal with the contractors, the realtors, the property managers, the tenants and best of all you’re not trying to solve every little problem that the owner may face. I’m not saying lending is perfect. You will have issues at times like anything in life, but by lending you lower the
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your personal name or an LLC you have created, or through your IRA. Lending gives you the ability to get mailbox money every month with limited experience. It is similar to stocks and bonds. You don’t have to be a millionaire to invest. You don’t have to worry about having a great credit score and being approved to buy the house. You can be young with a minimal amount of capital and begin lending to build wealth for the future. Maybe you are older and have an IRA with capital sitting there going to waste, you could invest and start receiving returns on that capital. Lending can give you the opportunity to make anywhere from 6% to 20% on your investment. EDUCATION Many investors have come before you and have made millions in lending. Because of that there are educational courses created to teach you how to be your own bank. The “do’s and dont’s” are available for you to learn and help you set yourself up for success. NO. 4 THE BORROWERPERSPECTIVE If you are like I was and have limited capital, not a perfect credit score, or little track record, working with a private lender is about the only option you have. You are not getting a loan with a bank that will require capital with a great credit score, and you are most likely not going to get a loan through hard money lenders that require capital and expe - rience. It can be deflating watching others reap the success of real estate and not having all the tools to help you get started. Private lending can come to your rescue and start you on the path to success and financial freedom. Here are a few ways private lending changed my life and can change yours too. NO. 1 RELATIONSHIPS There are many investors looking for great opportunities to deploy their funds. They are out there looking for people like you. Sure, it may be more difficult at first to raise the capital you are needing to do your first deal but over time it does become a lot easier. The key is getting your first deal and following through with your commitment. If you do what you say you’re going to do and if you show your lender a positive experience, they will do it again. In fact, they might even deploy more capital with you and even refer you to their friends.
Building relationships are key. Let’s face it, you will make mistakes, but if you work hard to always take responsibility and do the right thing, your lenders will appreciate that. NO. 2 SPEED AND PROCESS Sometimes the key to being successful in real estate negotiating is how quickly you can purchase a deal. Work - ing with banks and other lenders can often take a while to close. The normal time frame is 30-45 days. I have seen sellers get multiple offers on their property and go with the investor that can close the quickest. Having a private lender available can give you the flexibility to move quicker on the deal than your competition. After you do a deal or two with a private lender and you have built that relationship, you can skip through a lot of the red tape that you will face going through a traditional lending company. NO. 3 STRUCTURE There are more ways to skin that cat. I’m sure you have heard this saying before. This too applies in dealing with private lenders. You can structure each deal differently or that best suits you and your lender. At first you may have to do a 50/50 split with your lender or maybe pay a higher interest rate. Don’t be afraid to pay a little bit more for the capital. Don’t lose a deal because of greed. A bird in the hand is worth more than two in the bush. I’m full of wise sayings under this point. Remember you are being given an opportunity to make money with little to no skin in the game. If the lender requires more from you at first that is ok. You are paying for your education. As you grow you can restructure your loan to better suit you. Get the deal done. Many people have played a major role in my success including the private lenders who believed in me and took a chance on me. I will be forever grateful to everyone who lent me funds because without them giving me the opportu - nity, I would not be where I am today. •
Jason Engelman is CEO, Founder & Managing Partner of Freaky Fast Home Buyers and Investments LLC. In under two years, his company has purchased 130 homes in two states and currently employs 15 team members. Jason travels the country speaking in high schools, colleges and national real estate conferences. For the past five years, his focus has been managing investment portfolios within the real estate and energy industries. Jason is married to Country Music Artist Tori Martin and together they live in Nashville.
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