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THE IMPORTANCE OF CASH FLOW INVESTING:

Filed under: Buy-and-Hold,California,Economy,Memphis,Out-of-State,Real Estate,Real Estate Development,Real Estate Investment,Retirement,Self Direct IRA,Self directed IRA admin February 12, 2016@ 6:05 pm

by Mathew Owens

Running across multiple business owners and real estate flippers there is one common challenge that continues to come up, CASHFLOW.  Cash flow is the lifeblood of businesses and having enough of it can create a nearly impenetrable wall for stable long-term growth in a company or individuals life.  Likewise, not having enough cash flow can create instability and susceptibility to economic fluctuations that you have no control over.  Of course there are things out of all of our control but working towards building your moat to cover all of your personal and business expenses can put you in a very safe position.  The key to doing this is working toward purchasing assets that make you money month after month passively.  Many people feel helpless or unsure how to get started developing a cash flow stream.  There are a number of reasons for this, which stems mostly from a lack of knowledge about what resources are available and how to operate these types of investments.  Education is key to being able to create these income streams.  Here are a few key things you can do to expedite your cash flow stream.

LEVERAGE – Learn how to use leverage in your life.  You can buy assets with leverage. Using other peoples money to buy or flip properties, invest in promissory notes, hold properties for rental income, buy businesses or other assets that create monthly income can be a great way to increase your cash flow.    In order to use other people’s money it’s extremely important to learn how to protect their money first.  Learn how to secure their money with collateral and teach them how they are protected.   Get advice from your attorney and learn how to structure your investors funds in a way to protect them and you will have investors coming to you once you can teach them.  You can also pay others to help you make money, which is another form of leverage.  As long as it’s a win-win for both parties, having others help you will get you to your cash flow goals much faster.

EDUCATION – Most people who have achieved financial freedom through cash flow are constantly learning.  There are millions of ways to develop cash flow streams.  You just have to be a little creative, have some drive, develop a plan and take action.  Reading and taking classes on different strategies for investing can expedite your cash flow.  I took a weekend class on seller financing and completely changed the way I was able to sell properties and learned how to invest in notes by doing so as well.  Yes I got extra help, but it gave me enough knowledge to create another income stream out of it.  You do not need to buy the $15k bootcamp or book and tape set in order to get this education.  Going to real estate investment clubs, meetups, taking weekend classes and reading books and online can streamline this process.

DEVELOPING A PLAN – How much money do you need to cover all of your monthly expenses and create financial freedom?  What ways can you increase your income and decrease your expenses to achieve this?  When do you want to hit your cash flow goals? What assets are you going to focus on to develop these cash flow streams?  How do you plan on learning about these assets, how to operate them and how do you maintain them?  What is your 30 day, 90 day, 1 year, 5 year plan and goals?  These are all part of your plan and if outlined and put in place you will get to your cash flow goals much faster than you ever thought possible.

There are a number of asset types you can invest in or income streams to develop that can push you to financial freedom.  Here is a quick list of ideas to get started on:

  • Investing in rental real estate – single family and multifamily
  • Flipping real estate
  • Investing in performing and non-performing notes
  • Investing in syndicated investments
  • Selling on amazon, E-bay and other online sites
  • Private lending & transactional funding
  • Starting a business
  • Investing in other types of real estate

For more info, attend the free online webinar on February 24, 2016. RSVP here: https://goo.gl/6ZSdsk

 

OCG Properties, LLC
W: 424-757-4680
Appts: http://meetme.so/mathewowens
mpo@ocgproperties.com
www.ocgproperties.com
Facebook: http://www.facebook.com/mathew.owens2
LinkedIn: http://www.linkedin.com/in/mathewowens

 

About Matthew Owens
Mathew is the founder of OCG Properties, a company that specializes in equity and cash flowing real estate investments. He graduated from UC Santa Barbara with a bachelors degree in economics with an emphasis in accounting, earning his CPA license while performing audit and taxation engagements at various CPA firms, and worked primarily on large real estate clients. He currently specializes in value add cash flowing residential and multifamily real estate investments having purchased and renovated over 450+ properties. Mathew works with investors in multiple ways to acquire real estate in high cash flow markets around the country. He also helps investors develop various cash flow streams through syndications run by professional operators, promissory notes and other real estate related assets. Many of his clients benefit from his knowledge of real estate taxation and due diligence, legal and investment structuring, and long term investment planning and analysis.
• BA in Economics w/ Emphasis in Accounting from UC Santa Barbara
• Certified Public Accountant, 2002
• Bought, renovated and sold or held over 450+ properties Currently buying 5+ single family rental properties per month
• Purchasing an apartment building per quarter
• Raised over $25 million in private investors capital
• Currently own over 150 units in Memphis, TN & Atlanta GA Property management 7+ years experience
• Investments • Syndicated investments • Performing and non-performing Notes • Single family, multifamily properties flipping & holding • Private lending
• 10+ years experience taxation and auditing
• 8+ years full time real estate experience
• FIBI Long Beach Real Estate Investment Club Founder, 2009, 1638 members
• FIBI South Bay Real Estate Investment Club Founder, 2012, 1518 members

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TOP 5 QUESTIONS FOR REAL ESTATE INVESTORS TO ASK BEFORE SETTING UP A SEPARATE LEGAL ENTITY:

Filed under: Asset Protection,Buy-and-Hold,California,Due Diligence,Economy,Flipping,Memphis,News,Out-of-State,Real Estate,Real Estate Development,Real Estate Investment,Retirement,Self Direct IRA,Self directed IRA,Taxes admin January 27, 2016@ 4:29 pm

by Mathew Owens

One of the main questions investors ask me when starting off investing is what entity should they setup when investing. Many investors have already setup an entity because some attorney said they needed it or they heard about it in a class as a good asset protection method. However, there are a ton of factors to consider whenever you are deciding on which legal and tax structure you should put in place. Here is my top 10 list of factors to consider when putting your structure together that not all attorneys or CPA’s will tell you.

  • WHAT ARE YOU TRYING TO PROTECT?
    Many investors go setup an entity before they even have a property or investment in place. This can be a huge waste of time and money given that I have seen many investors setup entities they intend on using for investments but do not actual invest for years and have to do tax returns and pay LLC fees that could have been saved. My advice, wait until you have a property to even begin looking at your legal structure and even then a secondary legal entity may not be the answer.
  • WHAT ARE THE RISK DIFFERENCES IN YOUR SITUATION BETWEEN INSURANCE AS A FORM OF LIABILITY PROTECTION VERSUS SETTING UP A SEPARATE ENTITY FOR LIABILITY PROTECTION?
    There is a constant trade-off when looking at using insurance to protect your assets versus an entity like an LLC or S-Corporation coupled with insurance. Typically just having insurance in place can save you an extra $1,000 – $1,500+ per year instead of having an entity, but then you also have some additional risks like if the insurance company doesn’t pay or you have exclusions in your policy that are not covered. If you do go the insurance route, understanding those exclusions and how good your insurance company is at paying out claims is really important. With the entity structure, as long as you are not breaking the corporate veil and doing everything by the book, it can give you liability protection above and beyond insurance that keeps the liability inside the entity and makes it much more difficult for lawsuits to get at your personal assets.
  • HOW MUCH IS YOUR NET WORTH?
    When determining if you should setup an entity in the first place you should know and understand what assets are you trying to protect that a renter could go after. Do you own a home, have stocks, cash in bank accounts, cars, etc? If so you may want to consider putting your rental property in an entity for liability protection. The more you own, the bigger the risk that someone could come after you and make you a target. On the other hand if you do not have a lot of assets and your only asset is your rental property you may benefit from the savings by not forming an entity more than the liability protection. Also, if you’re net worth is greater than the liability insurance limits you may want to get an umbrella policy in place as well as a cover all. Again take a look at your exclusions in the insurance policy as well.
  • ARE YOU MAKING RENTAL INCOME OR CAPITAL GAINS INCOME?
    The type of income you make is very important for tax purposes. Flipping and holding can have different tax consequences and should be looked at very differently when determining the right entity to invest in. When holding real estate many attorneys recommend using an LLC (or a Land Trust with an LLC) for liability protection, which is great for tax purposes as well because they are considered flow through entities which flow right onto your personal tax return without any federal or state tax consequences other than state LLC fees. When flipping, depending upon your volume, you may choose an LLC or S-Corporation structure. It really depends if you are classified as a dealer or not. Typically investors that flip a lot can get classified as a dealer, meaning the income then turns into active ordinary income instead of long term or short term capital gains income. Ordinary income comes with payroll taxes at 15% of your salary. Most of the time it makes sense to setup an S-Corporation to save on payroll taxes IF you are making enough money to warrant the entity setup and annual expenses due to the minimum salary requirements in S-Corporations. Bottom line, unless you are making over $40,000 a year net, after all of your expenses, your payroll tax savings is minor and may not make sense to setup an S-Corporation at all. This point should be discussed with your CPA and your attorney so that your team is on the same page.
  • WHAT STATE ARE YOU GOING TO FORM YOUR ENTITY IN?
    Many investors start off forming an entity in the state they live in which may not always be the best choice. You want to understand the laws in the state your property is in along with the laws in the state you live in. Many investors choose to do business in completely different states like Delaware that has good privacy laws that hide owner’s information much better than other states. States like Tennessee have no state income taxes but have franchise and excise taxes which you can get around completely by forming an LLC in that state that qualifies for an exemption from those taxes when its 95% family owned. If you live in California, their stance is that you owe them their $800 Franchise Tax Fee because you are managing the entity from California, even if the property is in another state. Keep in mind if you have property in an LLC located in different states you should be registered in that state so you are valid entity in that state.

I hope this gives a little insight as to some of the key factors to consider when forming entities for real estate investments. Please consult your individual attorney for advice on this topic as every situation is different and the information above is a much higher level discussion.

If you are interested in learning more we are having a Bruch and Learn class on Tax and Legal Strategies for real estate investors on Saturday, January 30th in Tustin from 9am – 11:30am. Here is the link if you are interested in attending. http://www.meetup.com/Learn-How-To-Be-a-Real-Estate-Investor-Group/events/227465788/

OCG Properties, LLC
W: 424-757-4680
Appts: http://meetme.so/mathewowens
mpo@ocgproperties.com
www.ocgproperties.com
Facebook: http://www.facebook.com/mathew.owens2
LinkedIn: http://www.linkedin.com/in/mathewowens

About Matthew Owens
Mathew is the founder of OCG Properties, a company that specializes in equity and cash flowing real estate investments. He graduated from UC Santa Barbara with a bachelors degree in economics with an emphasis in accounting, earning his CPA license while performing audit and taxation engagements at various CPA firms, and worked primarily on large real estate clients. He currently specializes in value add cash flowing residential and multifamily real estate investments having purchased and renovated over 450+ properties. Mathew works with investors in multiple ways to acquire real estate in high cash flow markets around the country. He also helps investors develop various cash flow streams through syndications run by professional operators, promissory notes and other real estate related assets. Many of his clients benefit from his knowledge of real estate taxation and due diligence, legal and investment structuring, and long term investment planning and analysis.
• BA in Economics w/ Emphasis in Accounting from UC Santa Barbara
• Certified Public Accountant, 2002
• Bought, renovated and sold or held over 450+ properties Currently buying 5+ single family rental properties per month
• Purchasing an apartment building per quarter
• Raised over $25 million in private investors capital
• Currently own over 150 units in Memphis, TN & Atlanta GA Property management 7+ years experience
• Investments • Syndicated investments • Performing and non-performing Notes • Single family, multifamily properties flipping & holding • Private lending
• 10+ years experience taxation and auditing
• 8+ years full time real estate experience
• FIBI Long Beach Real Estate Investment Club Founder, 2009, 1638 members
• FIBI South Bay Real Estate Investment Club Founder, 2012, 1518 members

Comments (1)

The Top Six (Mostly) Legal Issues to Consider Before Purchasing Investment Real Estate:

Filed under: Asset Protection,California,Due Diligence,Economy,Flipping,Memphis,News,Out-of-State,Real Estate,Real Estate Investment,Taxes,Trust admin January 25, 2016@ 12:04 pm

by Peter Fischer

As a transactional real estate attorney (and an investor myself), I’m often surprised at the confusion, misunderstanding and lack of comprehension there is among real estate investors (even those who are seasoned, experienced, and even successful) regarding certain basic legal considerations which are a must for consideration prior to any real estate investment (for our purposes here, meaning prior to purchasing an investment property, but really also prior to making an investment in a syndication, purchasing a note, and virtually any real estate investment).

As such, below I’ve set forth the basics and bare minimums to consider before your next investment:

1. Not exactly a legal consideration, but will inform so many of your other decisions – what are your investment objectives? What type of property (or other asset) are you purchasing? Is this an investment for a short-term hold? Is this going to affect your retirement? Are you trying to build up a lump sum gain (or loss for that matter) for a specific purpose? How much risk can you tolerate and how much can you afford to lose? How does this investment fit in with the rest of your portfolio and otherwise with your financial position? How active (or passive) will you be in this investment?

2. Once you consider the questions set forth in part 1 above, you are really ready to start thinking about how to legally structure your investment. Your first consideration will be how do you want to hold your investment? Are you investing on your own or with partners? What does your insurance package look like? What other steps have you taken (or will you take) regarding controlling liability and dealing with taxes (more on this later, but could direct your whole strategy)? Your decisions to form an LLC, a corporation, hold title in your own name, or the name of trust (and so many other choices) will all stem from the answers to these questions.

3. Once you decide on which entity to use, you’ll need to consider which state to form that entity in, as well as how the entity will operate, how it will be controlled and who will own it. This could be simple (especially if you are on your own), or it could become very complex if you have multiple partners, some investing money and some investing time and services, if you want profits and losses distributed in a certain (and non pro rata way) and the like.

4. As a follow up to part 3 above, if you have partners and/or investors involved in your investment, there are a whole host of additional considerations. For starters, you must understand the difference (and there is a BIG difference) between a “partner” and an “investor”. Are you doing a joint-venture (where two or more people will make decisions and have control), or are you simply raising money from passive investors? The difference between having a partner or co-venturer and dealing with investors is not just semantics, and could one of the most important points you’ll learn from the upcoming seminar, but for now, just remember that if you are raising money from third parties (with no control over decisions ), your investment involves not just real estate law, but also securities law.

5. As such, be very (very) careful and thorough when selecting counsel, and hire earlier, much earlier than you think you need to. Find an attorney you like and trust early and make sure that attorney is experienced in both real estate law and securities laws (if that’s part of your investment). Ask prospective any attorney about his or her specific experience with the specific deal-types that you are investing in. Looking at a multifamily TIC syndication structure? Find an attorney who isn’t just well versed in residential purchases. Additionally, make sure (if the attorney is going to be representing more than one person in your deal) to flesh out any conflicts of interest at the outset, and understand who is being represented, who has the authority to direct the attorney, and the like.

6. Finally, I always advise my clients (if they haven’t already) to make the right connections to fill out the rest of their team. It is imperative to get quality tax advice from the outset. Find a great and knowledgeable CPA (perhaps even before you talk to me, although I work with several fantastic ones and often make introductions). Furthermore, it’s a great idea to have a relationship with a trust and estates attorney who can give you estate planning advice from day one. Like they say, the only certainties in life are death and taxes, and (in addition to a great attorney), if you find the right professionals their advice will be like gold (and help you make and save your gold).

RSVP for Tax and Legal Strategies for Real Estate Investing here: http://goo.gl/zaGRtb

About PETER FISCHER:

Attorney, Enenstein Ribakoff Lavina & Pham
http://enensteinlaw.com/
Phone: (310) 899-2070
Fax: (310) 496-1930
E-mail: pfischer@enensteinlaw.com
Peter Fischer is a partner, and a member of the Firm’s corporate and real estate groups, as well as the head of the Firm’s entertainment practice. Peter’s practice includes a wide range of general business, corporate, real estate and, other commercial law matters.

Corporate/Entertainment

Peter regularly acts as general and strategic counsel to privately held middle-market and emerging growth companies. Peter is integral in assisting with corporate formation and structuring needs, negotiating stock and asset acquisitions, structuring and documenting a wide range of financial transactions (including private placements, senior and subordinated loan agreements, leveraged buyouts and restructurings). He also routinely represents clients in connection with a diverse range of entertainment, media and intellectual property matters, including complex production, distribution and financing transactions, capital raising transactions for production and other entertainment companies.

Real Estate

Peter also represents clients in transactional real estate matters, including acquisition, syndication, fund formation, development, leasing, construction, and other financings. He has represented developers, investors, borrowers, and lenders in all product types, including multi-family, senior care, retail, industrial, medical office and residential.

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8 Warning Signs You May be Giving Too Much Money to Uncle Sam:

Filed under: Buy-and-Hold,California,Flipping,Memphis,Out-of-State,Real Estate,Real Estate Development,Real Estate Investment,Retirement,Self Direct IRA,Self directed IRA,Taxes admin January 6, 2016@ 6:09 pm

by AMANDA Y. HAN, CPA, Keystone CPA

 

As CPAs and  real estate investors, we often speak at local REIAs and other venues to educate investors on tax saving strategies. After we do our teaching sessions, we often get to meet people and learn about their investing experience and their tax related questions. What we noticed over the years is that a lot of people wonder whether or not they are overpaying in their taxes or if there is something they should be doing differently to save more taxes.

To be honest, it is very hard, if not impossible, for us to give an in-depth diagnosis and develop tax strategies for someone we just met a few minutes ago. Tax planning is a process that includes reviewing old returns and more importantly understanding the financial profile of an investor, their business, family dynamics, and investment goals.

Although we generally cannot tell someone we just met whether or no they are paying too much taxes, we have identified a few warning signs that may indicate where opportunities may exist.  Here are a few of the ones we thought we would share with you here:

 

  1. Recordkeeping:

Bad Sign: No stable record keeping system in place. Words to live by are “What gets measured gets managed”. It is super important to know how your real estate business is operating each month. If you track your expenses, you can easily see where legitimate tax deductions can be taken advantage of. Accurate and timely financial records keep your cash flow in the green which is essential to your wealth building. It is also the very foundation of effective tax planning. If you don’t have good bookkeeping in place, you may be losing out on some legitimate tax write-offs.

 

  1. Communication:

Bad Sign: Plan on paying higher taxes if you are not meeting or communicating with your tax advisor throughout the year. Any of us who plan on reducing our taxes need to consider proactive planning year-round. If you are waiting until April 15th to think about reducing your taxes, you may be in for a big surprise. Frequent communication with your tax advisor provides you with tax planning opportunities. Maximizing your tax deductions is done throughout the year with effective  tax planning.  Be sure to make this a part of your business and real estate operational system.

 

  1. Knowledge

Bad Sign: Each year you explain your real estate transactions to your tax preparer because they don’t recall or understand what exactly it is that you do.  Real estate is a specialized area and there are specific strategies that can significantly benefit you as an investor. Real estate related tax strategies may be very different from tax strategies for restaurant owners. Make sure your tax advisor is well versed in the tax saving opportunities in your industry.

 

  1. Compensation

Bad Sign: Not planning on how to extract money from your business tax efficiently. There are many ways to extract profits out of your business so let’s look at the good and the bad. For C Corporations, you can save thousands of dollars a year in taxes by simply paying yourself a higher salary. For S Corporations you can save thousands by doing the opposite and paying yourself the least amount possible. There are other great ways to extract profits from your business “Tax Free”. If you haven’t planned on “how” to extract those profits, you can easily be overpaying in taxes.

 

  1. Retirement Planning

Bad Sign: You are not currently taking advantage of tax deferred and/or tax free opportunities of retirement planning. Ask yourself: Am I significantly reducing my taxes using retirement vehicles? You will be surprised at the many different types of retirement accounts available to business owners and real estate investors. Not only do retirement accounts help you plan for when you retire but they also help you to reduce your current tax liability at the same time. If you pay taxes to the IRS and are not using retirement accounts you are more than likely to be overpaying in taxes.

 

  1. Fringe Benefits:

Bad Sign: Ever heard of the term “fringe benefits”? Tons of tax-free fringe benefits are available where your business takes a tax deduction for perks they provide to you as the business owner (and it’s not taxable to you). There are dozens of these amazing techniques including company cars, gifts, and Medical Savings Account to name a few. If you do not take advantage of tax free fringe benefits as part of your business planning, you may be overpaying your taxes.

 

  1. Personal and Business Deductions:

Bad Sign: Not knowing what items you can shift legally from your personal expense bucket into legitimate business deductions. Nowadays, it has become almost impossible for us to distinguish between personal vs. business items. Many of us use our personal cellphone, cars, iPads and laptops for business. All of these personal items that you use day in and day out for your business may be legitimate tax deductions if tracked correctly. If you don’t know how to shift personal items into business deductions, you may be overpaying your taxes.

 

  1. Tax Savings Plan:

Bad Sign: No tax savings plan in place to make sure you are protected from the IRS. While incorporating all of these strategies above, you should be asking yourself is “What is my tax savings plan?” If you don’t know the answer, then it may be safe to say you probably don’t have one. No overall plan on “how” you will save taxes is one of the most common mistakes costing Americans to overpay taxes year after year.

 

About AMANDA Y. HAN, CPA, Keystone CPA

Director of Business Development of Keystone CPA

http://www.keystonecpa.com/index.php

Office: (877) 975-0975

E-mail:  info@keystonecpa.com

Amanda has over 18 years of experience as a CPA  with special emphasis in real estate, self-directed investing, and individual tax planning. Amanda has extensive “Big Four” public accounting experience in the Lead Tax Group servicing clients in the  real estate industry. She provided tax consulting and tax compliance for companies engaged in land development, residential development, medical facilities, and conglomerate shopping malls. Subsequent to her work at Deloitte, Amanda served in the Corporate Tax Department for an international Fortune 500 Company in the high tech industry and was responsible for quarterly provisions and various aspects of SEC reporting. Amanda has numerous years of experience in working with international companies in terms of federal and multi-state tax planning as well as audit representation and resolution.

Amanda is a frequent contributor and educator to some of the nation’s top investment companies and is a leading expert on retirement investing.  Amanda’s cutting-edge tax strategies have been featured in prominent publications including TIME Magazine Online, Bigger Pockets.com, Realtor Magazine, and AllBusiness.com, a Dunn & Bradstreet Company. She is certified by the CA State Board of Accountancy and is a member of the prestigious American Institute of Certified Public Accountants (AICPA) practicing in all 50 U.S. States.

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Your Prosperity Mindset: Are You Leaving Money on the Table?:

Filed under: California,Economy,Memphis,Mindset,Personal Development,Real Estate,Real Estate Investment admin December 21, 2015@ 6:27 pm

by Lisa Reid

How often have you heard people say they want to make more money? Probably a lot!  It is a common topic of conversation – especially when we are out networking and talking to business professionals.

How often have you heard people say they want to investigate the thinking that got them the results they currently have?  Probably …. never (or at least very rarely)! It is often easier to blame external circumstances (e.g., the economy, lack of good leads, not enough time, no support) for our current situation rather than look at where we played a part in our own reality.

It is critical that we investigate our own THOUGHTS and FEELINGS when it comes to our business and prosperity.  How can we have a prosperity mindset if we don’t even know what we are thinking and feeling?  In our culture it is popular to look at our ACTIONS and start making a list of “to-do” items when we set our goals.  Yes, action is critical, BUT so are our thoughts and feelings.

Let’s put it into play….

What type of prosperity would you like to see in your life by the end of this year?  Go ahead and jot it down or make a mental note of your answer.

Now, what actions would you need to take to make that goal a reality?  Feel free to jot those actions down too or make more mental notes.

Ok…so what feelings would you need to have to take those actions?Excited?  Confident? Enthusiastic? Do you know what feelings you have about it currently? Time to get honest with yourself and contemplate this question.  Understanding this step and diving deep will get you closer and closer to your ideal prosperity.

And what thoughts would you need to generate those feelings?  Most people have a hard time with this one – we are so “in our own stuff” that we can’t imagine another way to think about our goal.  So I’m going to give you some examples to get the juices flowing.  “I am so excited about launching my new product!” “My confidence is through the roof when I think about what I’m going to achieve!” “I can already see the balance in my bank account rising.”

When you are stuck, you can go back to this formula and start investigating why you are not getting the results you want.  The more you understand your thoughts and feelings regarding prosperity, the less money you will leave on the table.

When we continue to do the same thing over and expect different results….well, you know the rest of the story.  So today you can use the above questions and shake it up.  Each time you go through this process, you are increasing your awareness muscle.  The more awareness you have of YOU, the more opportunities will be revealed and the more you will SEE the money on the table right in front of your eyes.

When you are ready for a 6-pack (think “awareness abs of steel”) – go to www.ProductiveLearning.com where we specialize uncovering the limited beliefs that are standing in the way of the results you desire.

 

About Lisa Reid

Leisa Reid is a presenter with Productive Learning, a boutique personal growth company founded in 1992. She trains over 100 groups a year as a guest speaker throughout Southern California. After 20+ years of Management, sales and Executive Leadership, Leisa dedicated her life to assisting others invest in their personal development. Why? because she personally experienced the powerful results as a client of Productive Learning. She loved the company so much she joined them in the pursuit of living an extraordinary life.

Leisa gives back to the community through her love of collaborating with others and speaking. For example, in 2013 she founded the OC Speakers Network, an organiation that supports others who wish to share their expertise through the speaking platform.

In today’s presentation, “Creating a Winning Mindset – When Positive Thinking Isn’t Enough,” Leisa will be giving you an experience of what of a Productive Learning workshop is like – an interactive experience where you learn something about yourself, your thinking and a glimpse into what could be holding you back from the very thing you deeply desire.

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Entitlements, Environment and Economics?:

Filed under: California,Due Diligence,Economy,Memphis,Multifamily,News,Out-of-State,Politics,Real Estate,Real Estate Development,Real Estate Investment admin @ 11:31 am

by Larry J. Kosmont

 

The path  to development success is  strewn with obstacles beyond the typical challenges of financing, construction and leasing. Especially when it come to transactions that require public agency approvals, where a project can live or die based on zoning decisions and California Environmental Quality (“CEQA”) documentation, not to overlook the unpredictable and often combative landscape of community/neighborhood interaction  and local political leaders, some of whom have been  known to wilt at the sight of testy audience on a Tuesday night. Larry Kosmont will discuss political and policy trends that affect development and property investment, and will focus on a number of key south bay projects that he has had a hand in guiding and financing.

California real estate development has always been a risky proposition, and now more than ever.  Today the average project must have a strategy for zoning approvals and CEQA analysis. Larger projects in particular must conduct  a review that is mandated by the California Environmental Quality Act (CEQA), which means independent analysis by experts on the impacts of a project. Potential impacts  ranging from  height, density and visual impact are evaluated, as well as air and water quality impacts and of course traffic and circulation. For some projects this process can take 18 to 24 months and cost in excess of 1 million dollars!

However the point of CEQA review and other public hearings related to development project applications is to provide neighborhoods, community representatives and local leaders a basis from which to make decisions on important development projects. And in many cases these projects not only  yield environmental implications, but also represent economic development opportunities for a community, which means the capacity to enable private investment that can create local jobs and taxes. Given the broad considerations of real estate projects on communities, its not surprising that major properties in the south bay, such as the Manhattan Village mall, South Bay Galleria, AES property, and the Waterfront  all capture a good amount of local media coverage as they  wind their way through the public approval process. It’s a good time to pay attention since change is in the air for many of our local communities, and quality of life can be significantly impacted by these projects.

 

By Larry J. Kosmont

Mr. Larry J. Kosmont, CRE®, is the President and CEO of Kosmont Companies, which he founded in 1986. Kosmont Companies is an industry leader in public/private real estate transactions, economic development and public finance. In 1990, he founded Kosmont Realty Corporation, a company which sources private financing for public projects, P3 initiatives, infrastructure funding and economic development. Mr. Kosmont is also Managing Partner of Renaissance Community Fund, which has invested in and develops mixed use, residential and commercial projects throughout California, and a Principal of California Golden Fund, an approved EB-5 Regional Center.

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Effective Strategies to Tackle Development Opposition:

Filed under: California,Due Diligence,Economy,Memphis,Multifamily,Out-of-State,Real Estate,Real Estate Development,Real Estate Investment admin @ 11:28 am

by Fred Bruning

 

The zoning laws in the State of California give many advantages to those who might be inclined to oppose new development projects, as they provide numerous avenues to delay projects through environmental litigation, public referendums and other delaying tactics. Often, the leaders of these opposition groups rely on false information and scare tactics to rally support for their point of view, or use the mantra of “all development is evil” to attempt to sway the voters.

 

I believe the most effective way to counter this activity is to out-communicate the opposition. If you believe in your project, don’t be afraid to provide the community with all the details, for if you do not do so, the opposition will paint a picture of your project that has very little resemblance to the truth.

 

For example, we have implemented an aggressive community outreach program underway in Redondo Beach to help get the facts out about our project. It is a multi-faceted approach that includes:

 

*    informal coffee meetings in residents’  homes with between 5 and 25 neighbors and friends

*    more formal presentations to local community groups, businesses and non-profits

*    attendance at community events with an information table

*    and an ambassador program to provide classes to neighbors who have an interest in learning the facts about the project.

 

To date we have successfully talked to more than 2000 residents face-to-face and reached several thousands through our partnerships with educational, arts and health related groups in the community.

 

Additional steps to successfully bringing a project to fruition also include having complete knowledge of your development rights, an excellent technical team to make sure all the necessary steps in the zoning process are accomplished in attack-proof form, a strong communication program to ensure that an honest message is heard by the community and the willingness to hold accountable individuals who deliberately misrepresent your project.

 

RSVP Here: http://www.meetup.com/fibisouthbay/events/226978172/

About Fred Bruning

In 1988, Mr. Bruning formed his own development company, CenterOak Properties, LLC., and in 2005 formed CenterCal Properties, LLC. , which combined have developed retail and mixed-use projects throughout the western United States with a combined value of over two billion dollars.  In his career thus far, he has been actively involved in over 150 major retail developments in the western United States.  Over the past decade, CenterCal Properties has been one of the most active retail and mixed-use, transit-oriented developers in the United States, and has set a very high standard for quality retail development, focusing on place-making and reimagining the retail shopping experience.

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The Life Cycle of a Self-Directed IRA:

Filed under: California,Memphis,News,Real Estate,Real Estate Investment,Retirement,Self Direct IRA,Self directed IRA,Taxes admin @ 10:59 am

by Kaaren Hall

 

The one thing about self-directed IRAs that really make them valuable and exciting is the fact they give you so much power to make investment decisions on your own. When you have a regular IRA chances are you are trusting some anonymous fund manager to make investment decisions with your retirement dollars.

 

With this great freedom comes some responsibility. Self-directed IRAs do require more research and due diligence on your end. As a provider of these types of accounts the one thing we’ll never do is tell you what to invest in or if your deal is a good or bad idea for you financially.

 

We find people have the best luck investing in asset classes they are familiar with. Maybe real estate is your thing. If that’s the case you have the freedom to invest your retirement into this asset class and reap the rewards in your retirement years. Our account-holders also invest in private stock, precious metals, raw land and a lot more. Nothing replaces good due diligence so make sure you do your homework before you invest.

 

It’s important to understand the rules before you launch into a self-directed IRA investment and that’s what uDirect IRA Services is here for. We provide all kinds of investor education and will walk you through the process.

 

Self-directing an IRA is basically a 3-step process to 1) Open an account 2) Fund that account and 3) Invest. It goes further than that, of course. Once you have invested all proceeds flow back into your IRA. Similarly all expenses of the IRA are paid for by the IRA.

 

What happens if you invest and your investment doesn’t pay off or worse, you are the victim of fraud? In cases where the asset value goes to zero a formal “valuation” needs to be requested at that time. A custodian cannot accept an e-mail or letter from the IRA owner saying the investments didn’t pan out. The ultimate goal of a self-directed IRA is to invest tax-free (Roth) or tax-deferred to save for retirement. There is a $6 Trillion deficit between what Americans have and what is needed to retire so start saving now. Like the old saying goes, the best time to plant a tree was 20 years ago. The second-best time is now. Start now and if self-direction is your choice we are here to help.

 

About Kaaren Hall

https://www.udirectira.com/

President of uDirect IRA Services
2522 Chambers Road, Ste 100
Tustin, CA 92780

Office: (714) 460-5505

Fax: (866) 446-7454

Toll-Free: (866) 447-6598

E-mail: KHall@uDirectIRA.com

uDirect IRA Services:

uDirect IRA Services has helped thousands of Americans invest their IRA outside of the stock market into real estate, land, private notes & more to improve their financial future.  Educating individual investors and professionals is the cornerstone of uDirect IRA. We have events right here in Southern California geared toward self-directed investing.  We also offer webinars so no matter where you are you can “Learn to Earn”. uDirect IRA provides complete and accurate information on self-directed IRAs so you can make the most of your retirement funds. We do not promote any investments. Rather, we provide the knowledge, tools and information you need to make self-direction easy. At uDirect, we help you get started quickly and easily, and stay with you every step of the way.

Karren Hall:

After 20+ years of experience at Bank of America, Indymac Bank and her own mortgage brokerage experience, Kaaren Hall saw the recession take hold and the mortgage market collapse. Rather than folding up her tent, Hall took her real estate and finance knowledge in a promising new direction – self-directed IRAs. Hall has helped thousands of Americans invest their IRA into real estate, notes and other assets outside of the stock market to improve their financial future.

Now, Hall is a passionate educator and facilitator for better retirement through highly diversified and individually controlled IRAs. She shares her expertise with investors and advisors through speaking engagements, online videos and a weekly newsletter.

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4 Questions You Need to Ask When it Comes to Choosing a Lender:

Filed under: Buy-and-Hold,California,Due Diligence,Economy,Flipping,Lending,Memphis,Out-of-State,Real Estate,Real Estate Investment admin December 16, 2015@ 10:58 am

by Steve Bighaus

 

In order to ensure long-term success when purchasing a rental property, it’s important to develop a strong, reliable team that can help you through the buying process, and your lender is a BIG part of that equation.

That’s why, when it comes to real estate investing, you need a lender who fully understands the investing landscape. Otherwise you may spend a considerable amount of time trying to explain your strategy and objectives and still end up with bad advice and the possibility of lost deals. The best way to avoid this is by choosing a direct lender with Fannie Mae or Freddie Mac instead of a mortgage broker.

 

The difference between a lender and a broker.

There’s nothing wrong with a mortgage broker when you’re in the market for your primary residence, but if you’re trying to build a portfolio of rental properties, a direct lender is almost always your best bet.

The main difference between a broker and a lender is that a broker shops your financial profile around to his or her selected list of lenders, whereas a direct lender is the institution itself lending you the loan.

A direct lender will tend to have more experience navigating the investing landscape, and can usually provide you with more appropriate deals than a regular broker. That doesn’t mean a lender is always the best solution — many direct lenders can place restrictive underwriting overlays which may hinder your strategy — but they should be the first place you begin looking. Picking the best lender for you.

The journey doesn’t end when you decide to go with a lender — you still need to choose which one is right for you. There are a few questions you should ask a lender to ensure that you’re getting into business with the most suitable one.

  1. Do you currently work with any active investors?
  2. How many loans can you offer to any one investor?
  3. Do you personally own any rental property?
  4. Does your company apply any additional underwriting overlays which may affect my ability to purchase an investment property? (Restrictions could include: Landlord history experience before being able to utilize rental income to qualify, limits on financed properties from ten to four, geographic restrictions for buyers who don’t live within one hundred miles of the subject property.)

Contrary to popular belief, now is a great time to buy rental property. Many markets that were over-priced during the housing bubble have over-corrected and property can now be purchased far below the cost to rebuild – which can mean substantial cash flow (even with the costs of property management).

But just because it may be easier to buy, it’s still vital that you perform your due diligence when it comes to lenders. By asking potential lenders these simple questions, you can be more certain that you’re choosing a lender that will be able guide you through the lending process and tailor it to your particular investment needs.

Steve Bighaus
Senior Loan Officer NMLS 112825
425.903.5647
Cellular: 206.930.1801
Fax: 888.409.0489
Steve.Bighaus@snmc.com

SecurityNational Mortgage, Inc. NMLS 3116
1604 Hewitt Ave, Suite 703
Everett, WA 98201

 

About Steve

Steve Bighaus has over 24 years experience in the mortgage industry. He maintains a focus on servicing the real-estate investor by offering aggressive financing options and resources for buyers interested in purchasing or refinancing their investment property. By concentrating on investment properties and the financing that comes with them, Steve is recognized nationally as an industry expert. The knowledge that he has enables him to find financing for people even when they have had difficulty elsewhere.

Steve has a strong focus on his family. He and his wife Maria have raised four children, and have one grandchild. In his personal time, Steve enjoys listening to and making music. An accomplished drummer, he has expanded his music vision and is currently taking jazz improvisation Vibraphone lessons.

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5 Tips to Investing in Any Out-of-State Market:

Filed under: Buy-and-Hold,California,Due Diligence,Economy,Flipping,Memphis,Multifamily,Out-of-State,Real Estate,Real Estate Investment,Retirement admin November 9, 2015@ 5:58 pm


by Matthew Owens

People ask me constantly how you should chose a market to invest in and what factors do you consider before investing. Real estate is very much market specific and it is very important to analyze the market you are interested investing in for a variety of factors. Investing strategically in specific markets across the country is a great strategy to create a cash flow stream to cover all of your expenses during retirement.

Here are 5 tips to investing in any out of state market:

(1) Start with analyzing the market. When researching any out of state market understanding the growth expectations, affordability of the market, and economic volatility or stability can be very important. Where are you in the cycle? What does the housing price index in the market tell you? What areas of the market do you want to focus on for the highest cash flow and asset quality? What about expected job growth? Review these items and gain a good understanding of the market before investing.

(2) Build your team. When investing in an out of state market your team is extremely important. The primary team members are property managers, contractors, attorney’s, CPA’s, Real Estate Agents, Inspectors, Insurance agents and affiliate relationships. Each team member should be vetted in detail with multiple interview questions setup. Always have backup team members in place as well.

(3) Do a complete neighborhood analysis. Be sure you really know your neighborhoods. Many investors make the mistake of investing in the wrong areas with the wrong tenant base. You can make some properties in lower end neighborhoods work if you have the right management company but for me it’s typically not worth the headache. Usually you get lower financially educated individuals renting from you that are judgment proof and there is a significantly increased risk of not paying or missing rent payments, tenant turnover, tenant repairs, vandalism and theft that occur on these types of properties. Understanding what the crime rates are in the areas as well as making sure you do not invest in a rural area which makes your property harder to rent are important factors also.

(4) Review the state laws. In every state the laws are different and it’s imperative to have a good general practice attorney, eviction attorney, real estate attorney and CPA in each market that you invest. The tenant landlord laws are extremely important when owning rental properties in any prospective market. Are the tenant landlord laws more favorable for tenants or landlords in your prospective state? How long does it take to evict a tenant if needed and how easy is it to go after them for repairs?

(5) Do a full renovation and property analysis. Before investing in any investment do a full preventative maintenance check and renovation bid on the property. Review all of the major systems in a property from the roof, HVAC, Furnace, plumbing, electrical, appliances, water heater, foundation and sub-floor, pool and equipment, and more. Get a full inspection report on the property from an outside licensed inspector. One of the biggest hindrances to cash flow is maintenance when things break down unexpectedly. Knowing your total all in cost on a project along with how much the investment produces after all expenses (property management costs, property taxes, insurance, repairs, vacancies, etc.) is key in determining your return on investment and future cash flow.

These are just some of the factors we considered before investing in any market. No matter what market you are investing in, do your due diligence on the market before investing. It could be the difference between having a long term positive cash flowing investment or an investment that cannot weather the storm.

OCG Properties, LLC
W: 424-757-4680
Appts: http://meetme.so/mathewowens
mpo@ocgproperties.com
www.ocgproperties.com
Facebook: http://www.facebook.com/mathew.owens2
LinkedIn: http://www.linkedin.com/in/mathewowens

About Matthew Owens
Mathew is the founder of OCG Properties, a company that specializes in equity and cash flowing real estate investments. He graduated from UC Santa Barbara with a bachelors degree in economics with an emphasis in accounting, earning his CPA license while performing audit and taxation engagements at various CPA firms, and worked primarily on large real estate clients. He currently specializes in value add cash flowing residential and multifamily real estate investments having purchased and renovated over 450+ properties. Mathew works with investors in multiple ways to acquire real estate in high cash flow markets around the country. He also helps investors develop various cash flow streams through syndications run by professional operators, promissory notes and other real estate related assets. Many of his clients benefit from his knowledge of real estate taxation and due diligence, legal and investment structuring, and long term investment planning and analysis.
• BA in Economics w/ Emphasis in Accounting from UC Santa Barbara
• Certified Public Accountant, 2002
• Bought, renovated and sold or held over 450+ properties Currently buying 5+ single family rental properties per month
• Purchasing an apartment building per quarter
• Raised over $25 million in private investors capital
• Currently own over 150 units in Memphis, TN & Atlanta GA Property management 7+ years experience
• Investments • Syndicated investments • Performing and non-performing Notes • Single family, multifamily properties flipping & holding • Private lending
• 10+ years experience taxation and auditing
• 8+ years full time real estate experience
• FIBI Long Beach Real Estate Investment Club Founder, 2009, 1638 members
• FIBI South Bay Real Estate Investment Club Founder, 2012, 1518 members

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