Author: Tim Herriage

by Tim Herriage Tim Herriage No Comments

Featured Speaker: Nick Fortune

We’re pleased to announce that our friend, Nick Fortune, and his company Fortune DNA have agreed to present at the Annual Summit and are now the host sponsor.

Nick Fortune

Nick has been highly praised by many of our customers as being a wealth of knowledge and providing the exact services they’ve been looking for.

There are more tickets available for this first of many Annual Summits.

More about Nick and Fortune DNA:

Nick Fortune is an inventor and intellectual creator for many asset protection and wealth strategy patents. He is a frequent guest on a variety of talk and news shows. For the last 22 years, Mr. Fortune has spoken for some of the largest real estate gurus and wealth building organizations in the world and continues to be an advisor to the same. Nick is the CEO of The Fortune Law , a 31-year national conglomerate encompassed of legal, tax, financial, and business consulting professionals.

“How to Legally Buy and Sell Real Estate 100% Tax Free With the Blessing of the IRS” (Not a Self-Directed Roth IRA and not a 1035 exchange)

This is the ONE event that you just cannot afford to miss this year! (Doing so will cost you $1000’s)

Asset Protection Strategies of the Ultra-Wealthy Revealed:

  • What the Top 1% Do, That YOU Can too and what you MUST do THIS year you didnt do last year!
  • Learn What Your CPA is not Telling You and Why!

Investors… if you are doing the same things this year as you did last year; be prepared to get out your wallet in April! The game has changed; the way you invest, how you invest, and what you invest in has changed based on the Tax Code! Things that were once deductible are no longer depending on how you are structured and take money!

  • Legally Reduce your Tax liability By 30-50%Learn how to protect your assets from creditors and predators alike.
  • Learn how to buy and sell real estate 100% tax free!
  • Learn how to deal with the new Trump tax rules and 138 deductions that have disappeared for investors.
  • Create a tax free perpetual wealth legacy for you and family for generations! Learn how to legally virtually eliminate state income tax.
  • Learn how to keep more of your hard earned money…period!

Come see if the way you do business would hold up to an IRS Audit or a Civil Lawsuit (and how to defend yourself from either)

Bonus Material- legally avoid taking Required Minimum Distributions
Financial advisors tell you that you MUST take Required Minimum Distribution and we would agree with them; except than we would BOTH be wrong. New laws in the Trump Tax Plan along with existing strategies allow you to almost completely eliminate having to PAY required RMD’s. This is NOT a roll out plan to a Roth OR a conversion requiring tax. NO taxable event is involved in this program.

Come listen how our Firm will allow you to take advantage of this program and save your retirement from thousands of dollars of un-necessary tax.

THE FORTUNE LAW FIRM / FORTUNE DNA
(702) 637-4040
(702) 534-3882 FAX
nick@fortunednagroup.com
880 Seven Hills Drive Ste #210
Henderson, NV. 89052

“The Most Advanced Affordable Asset Protection & Tax Strategy Company in the Country”

by Tim Herriage Tim Herriage No Comments

Timing your investment property refinance

Leverage is one of those things that can make or break your real estate investment portfolio.  The proper use of leverage can minimize your tax burden, fuel portfolio growth and accelerate returns.  The improper use of leverage can wipe away gains and bankrupt a company.  We believe the US economy has cooled, home prices are peaking, and interest rates will continue to rise.  These factors coupled together have formed our conclusion that now could be the best time in the market cycle to leverage your assets utilizing fixed debt.

Many real estate investors have enjoyed growth in the last five years fueled by loose purse strings at local banks and regional lenders.  Even the GSEs have dipped their toes in the water.  Large national firms like Blackstone’s B2R Finance (Now Finance of America Commercial) and Colony American Finance (Now CoreVest) offered five and ten year balloon notes on portfolios beginning in late 2013.  Now, we find ourselves five years later, and what does the next five years look like?

Below are our forecasts and recommendations with regards to leverage and your real estate investment portfolio:

  • Identify dates:  Many of the “community bank” loans have renewal and adjustment provisions.  Most real estate investors we talk to have no idea that most of these loans can be called due in full at the same time as they are supposed to “reset”.  If you have any loans that are due to reset, adjust, mature, or renew in the next five years, now is the time to address those loans.
  • Lock in rates:  Many real estate investor simply cannot remember when a 9% interest rate on rental property from a bank was a good deal.  Rates are still very low throughout the industry.  We believe the best choice for most real estate investors right now is to lock in as much 10 year or longer sub 7% money they can get.  The next five to seven years should see interest rates rise and fall several times.  We are still in a very low comparative rate environment, so it is best to make sure any debt that might need to be addressed within the next decade be done so now.
  • Cash Out:  Many investors aspire to pay off their rental portfolio.  While this is a noble idea, most real estate billionaires believe in the opposite.  The ability to responsibly borrow tax free money (that your tenants will pay back) which you can use as reserve funds or even growth capital is something that powers real estate investing at all levels.  We have clients that live virtually tax free by refinancing their rental portfolios routinely.  With the introduction of cash flow based cash, out refinances; investors now have an avenue to systematically re leverage their portfolios.

In short, we think:

  • Property Values are high (which helps LTV limits on loans)
  • Rates are still low (historically)
  • There are market shifts coming (which is why you don’t want exposure to adjustments, renewals, and loan maturity)

These factors make use believe now may be the perfect time to stabilize the debt on your rental portfolio.  Reach out to our team of real estate investment loan specialists today to have a conversation about your needs.

Want to call us?  Call 972-737-1850

Want to email?  Click Here

Have questions or comments?  Let have a conversation below.  Find this article helpful or thought provoking?  Share it please.

by Tim Herriage Tim Herriage No Comments

Liability – The unpredictable killer of assets

By Andrew G. Costlow

Many people wonder about insurance. We think we know what it is for, but why does it cost so much? How can we reduce expenditures on the “insurance tab” on our spreadsheets?

Of course we can shop property rates etc… but the one thing you want to really make sure you are “squared away” on is Liability. Why is this and why is liability the unpredictable killer of assets? How can I protect myself from liability? General Liability Insurance as stated by a Google search page:

General liability insurance (GL), often referred to as business liability insurance, is coverage that can protect you from a variety of claims including bodily injury, property damage, personal injury and others that can arise from your business operations.

Google knows everything right? Well, in this case they do a decent job. But look at the definition and you come to the conclusion that General Liability (GL) is a very broad term. What does it cover? “and others”? What is that? Indeed, it is “General” Liability.

The majority of claims that come out of GL are of the Bodily Injury and Property Damage type. If you hurt someone or damage their stuff, that is what we are talking about here. But why is it the unpredictable killer of assets? To understand that as investors, we have to think about the other side of the insurance coin and that is property insurance. Property insurance is predictable in most cases. Let’s say there is a $100,000 house and it is insured to value. It burns to the ground in a total loss. The insurance carrier knows it has to pay $100K. The investor knows they are going to be paid $100K. Everybody knows within a predictable certainty what that claim is about and how much is going to be paid. Now, let’s think about GL. Here is the scenario… an investor is flipping a house and it is vacant. A couple of teenage kids are playing around in the vacant dwelling (we hope there isn’t a vacancy clause exclusion…) and one kid falls and breaks their arm. This claim can go so many ways. Will the parents just take him to the ER and put it in a cast and be done with it using their own medical insurance or will they take him to the ER, not having medical insurance and then start getting bills from the hospital? If it is the latter, how are they going to pay? Do they have the money? Will they sue the Landlord? For what expenses will they sue? Was there negligence involved? If so, how much negligence was there and how does that translate into dollars? This is why Liability can be the unpredictable killer of assets and why General Liability Insurance is so important. There are just so many variables.

In most cases, liability claims are pretty straightforward. But, some can be very complex and very expensive. That is the crux of the matter. They are unpredictable. Thankfully though, they are pretty rare for the residential investor. Thus, General Liability is a pretty good bargain in the SFR investor industry and is something the SFR investor should be “squared away” on to protect their portfolio.

Andrew G. Costlow
REI Choice Insurance
Executive Vice President
2020 REI Group | REI Choice Insurance
Direct/Cell: 214.280.9575 | Office: 214-247-7727
8330 LBJ Freeway
Suite B855
Dallas, TX 75243
andy@2020rei.com

by Tim Herriage Tim Herriage No Comments

Financing Webinar

Real Estate Investment Financing

There are many options available for real estate investor financing these days that just simply haven’t been there in the past.  This week, we’ll be hosting a one hour webinar to update everyone on today’s products, and introduce our team of loan officers to you.  The webinar is at noon Central on Thursday, September 27th.  It will be recorded and shared with those that register.  Click here to learn more and register for this free webinar on real estate investment financing. We’ll be discussing current market trends, current interest rates, and some of the strategies our most successful clients are using.

by Tim Herriage Tim Herriage No Comments

Stated income, no doc, rental and fix and flip loans

Our finance team has been hard at work over the past few months! We’ve secured several new loan options that can meet almost any investors needs. We work offer over 50 different loan products, so let’s connect today, to see which one is right for you.

WE ARE REBATING ALL APPRAISAL FEES AT CLOSING FOR ALL APPLICATIONS RECEIVED BEFORE OCT 1

RENTAL LOANS

  • 30 year fixed or a combination of ARM options (IO too!)
  • Property Cash flow financing (not personal DTI)
  • Rates as low as 5.5%
  • FICO as low as 600
  • CASH OUT with 30 days seasoning
  • STATED income and asset loans

FIX AND FLIP

  • No appraisal options
  • Quick close (48 hours) options
  • Origination between 1.5% and 2.5%
  • Rates as low as 8%
  • Some no credit check options

We specialize in finding the right loan for your project and the right timing for your needs. Depending on your timeline, liquidity, and mid-fico score; some products may not be available at certain times. Instead of telling you NO, we find you the best option available.

Use this link to fill out a contact form

OR

Call 972-737-1850

OR

Email loans@2020rei.com

No brokers, please.

by Tim Herriage Tim Herriage No Comments

Two events, two deals and two loans

It’s a rainy but busy week at 2020 REI.  This week, I’ll be speaking at the Realty411 Lone Star Expo on Saturday, and the 5 Star Conference’s Single Family Rental Roundtable on Sunday.  There is more information below about these events or you can just click on the events tab to browse.  Our acquisitions business is going strong in DFW and we have two new wholesale properties in Plano and Irving that will hit the market soon.  The Irving Property is available now, but we are waiting for bids to come in on the Plano home since it is such a major rehab.  You can call our sales line at (214) 922-1970 now to talk to Jaymon.  We also have some new loan programs to talk to you about.  We have a 30 year fixed product with rates starting at 5.5% and some fix an flip loans with really good terms. This is a really good time to look at these ASSET based opportunities while rates are still ridiculously low.  Click here to talk to someone in our finance department.

Here is some more information about the upcoming speaking events:

Saturday: Realty411 Lone Star Expo:  I will be speaking about building a rental portfolio from 9:30 AM – 10:20 AM and will be at the 2020 REI booth afterwards.  Come say hello!  The event is free, and lasts from 9:00 AM till 6:00 PM.

  • DATE: SATURDAY, Sept. 15th, 2018
  • VENUE: Sheraton Arlington Hotel, 1500 Convention Center Drive, Arlington, TX, 76011
  • TIME: 9:00 AM — 6:00 PM
  • REGISTRATION BEGINS AT 8:30 AM
  • Learn more here

Sunday: 5 Star Conference’s THE SINGLE-FAMILY RENTAL ROUNDTABLE: I am on a panel about the latest financing strategies for investors from 11:00 AM – 11:50 AM.

by Tim Herriage Tim Herriage No Comments

Quick Close Loan in AZ, CO, TX, TN, and NC

Real Estate Investment Financing Program Overview

This quick close loan product is only available in Arizona, Colorado, North Carolina, Tennessee, and Texas.  We generally limit it to non-rural areas with a population of at least 20,000 people within the county where the property is located.  The interest rate on these loans is 12%.  The origination is as follows:

  • Arizona: $1,500
  • Colorado: 2%
  • North Carolina: 2%
  • Tennessee: 3%
  • Texas: 2%

Loan Type:  Fix & Flip, Buy & Hold, Rehab, Cash Out, Refinance, Construction, Transactional Funding, and Bridge Financing

Property Type:  Single Family Residential and Multi-Family (non-owner occupied); limited commercial

Loan Size:  $50,000 to $2,500,000

Loan-to-Value (LTV):  Up to 70% of after-repair value (ARV)

Loan-to-Cost (LTC):  Up to 90% of purchase price (rehab financing up to 100% available subject to borrower qualification)

Loan Term:  6 months with option to extend

Lien Position:  First position

Borrower Qualification:  No income requirements. No credit check. No minimum FICO scores.

Borrower Type:  Business / Entity

Prepayment:  No prepayment penalty

Closing Speed:  24 – 48 hours. Minimal paperwork*

Other:

  • Appraisal not required*
  • Credit score not required*
  • No “junk” fees*

REAL ESTATE FINANCING IS STRICTLY FOR BUSINESS AND/OR INVESTMENT PURPOSES ONLY (I.E. NON-CONSUMER)

*majority of loans

Jennifer, Lisa, and Patricia are our amazing representatives for our loan products.  You can fill out the form below, email loans@2020rei.com,  or call 972-737-1850 today to speak to them.

FILL OUT THIS FORM TO GET STARTED

by Tim Herriage Tim Herriage No Comments

The Power of 1031 Exchanges

This month, Lu Ann Blough will present “The Power of 1031 Exchanges – Multiply your dollars” as the June Continuing Education (CE) for Texas real estate agents.  Agents receive complimentary CE, but everyone can attend this session.  The course will cover: Identify those real estate transactions which are eligible for IRC 1031 consideration. List and understand the six (6) basic components. Identify the statutory requirements for a Qualified investment(QI). List and describe the specific functions and role of a QI. Recognize that 1031 Tax Deferred exchanges need to be a part of a client’s tax planning strategies. Taught by Lu Ann Blough with ERG. 1hr MCE. Course number: 30958

CLICK HERE TO REGISTER FOR THE FREE MONTHLY DFW INVESTORS MEETING ON JUNE 7TH NOW

In this class you will learn how to:
1. Identify those real estate transactions which are eligible for IRC 1031 Exchanges.
2. List and understand the six basic requirements for a 1031 Exchange
3. Identify and understand what to look for when choosing a qualified Intermediary
4. Recognize that a 1031 Exchange should be part of an investor’s retirement planning strategy.

MORE ABOUT LU ANN:  Lu Ann Blough brings 20+ years experience in the title industry, reinsurance and real estate industries to the Exchange Resource Group team and acts as Regional Development Manager. She is the proud mother of three sons, Matt, Daniel and David. Matt currently works in the insurance industry, Daniel works for a commercial real estate company and David is currently attending Purdue University and plays quarterback for the Boilermakers. Lu Ann grew up in Deerfield, IL attending Deerfield High School. She spent her undergraduate years at Vanderbilt University in Nashville, TN where she received a Bachelor of Science in Psychology. She began her career working in London for a Lloyds of London Insurance Broker.

Lu Ann Blough || direct 972-863-1031 || LuAnn@erg1031.com
Regional Development Director || Exchange Resource Group || www.erg1031.com

MORE ABOUT ERG:  ERG is a nationwide qualified intermediary (QI) specializing exclusively in all types of 1031 tax deferred exchanges, including complex reverse, construction, and improvement Exchanges. The principals of the company have a combined 50+ years facilitating 1031 Exchanges.

1031 Exchange Services – Texas – Exchange Resource Group, LLC is a qualified intermediary (QI) handling all types of 1031 exchanges in Texas, including reverse, construction, and real property exchanges. We provide 24/7 support so you can ask us questions anytime.

We provide educational and transaction support to investors, buyers, sellers, CPAs, attorneys, brokers, real estate agents, banking and title professionals to ensure that clients are comfortable (and even excited!) using a 1031 exchange to defer paying taxes on even the most complex deals.

ERG Provides:

Education
Document Preparation
Secure Holding of Funds
Timeline Tracking
Transaction Support
With 40 years of experience and 12,500+ transactions behind us, you’ll get expertise that saves closings and keeps deals from falling apart.

Our team prepares and reviews the documents necessary to complete your exchange and properly comply with current Section 1031 tax law offering you the protection and assurance you need to complete an exchange.

by Tim Herriage Tim Herriage No Comments

Alternative Leads From Public Sources

George Roddy will be presenting the tool belt training at the May 7th free DFW Investors meeting.  This session is included with our complimentary CE, Featured Presentation, and open networking and bar.

The days of having “secret leads” in your arsenal is over due to technology in this industry so what should you do? Give up? No, the answer is to get more creative. There are hundreds of motivated and distressed owners that are looking to sell their properties. You just need to find away to locate them and inform them on WHO you are and WHAT you do. At the May DFW Investor meeting, George Roddy, Jr will show you different ways of sourcing motivated owners through public data.

• Owners who have lived in the property for more than 20 years
• Owners who are behind on property taxes and not in a deferral tax program
• Owners who have just evicted a tenant.
• Owners who have a vacant property
• Owners who have code violation from the city.

The DFW market has a lot of real estate investor competition but most investors won’t dig deep to find leads. If you spend a little more time, you will reduce your competition.

More About George:  George Roddy, Jr. is founder and CEO of Roddy Real Estate Investing Academy (RREIA) and Roddy Rentals (turn-key residential investment opportunities).  Prior to starting RREIA, George served as Vice President of Foreclosure Listing Service’s operations for 15 years.  He also has held his real estate license since 1998.  George has taught over 10,000 investors and real estate agents throughout his tenure and authored 8 different real estate investing courses that were certified for “mandatory continuing education” for real estate licensees/brokers.

More About the Roddy Real Estate Investing Academy:  The Roddy Academy offers education based on 25 years of Texas real estate investing experience. The Roddy staff has purchase over 9,000 properties and instructed over 20,000 investors and Realtors on Texas investment strategies, lead generation, market analysis, negotiations, rehabs, and liquidating single family properties in Texas.  Our mission is simple… to make YOU a more profitable real estate investor!

George Roddy – CEO

Roddy Real Estate Investing Academy

W:  https://roddy.com/

P:  214-593-0074

E:  george@roddy.com

A:  1415 Legacy Dr, Suite 350, Frisco, TX 75034

by Tim Herriage Tim Herriage No Comments

New Texas Real Estate Commission Contract Changes

Richard Weeks, Associate Broker and Office Manager for Investable Realty, and SVP for 2020 REI will present this month’s continuing education at the free DFW Investors Meeting on May 7th.  The course will be “Avoiding Common Contract Complications TREC Course 32236”.  This course is open to all investors, of all skill levels.  If you’d like the CE credit as a Texas REALTOR®, you must stay for the entire hour.  The course is free of charge, and is sponsored b DFWREIA, LLC.

Effective May 15th, there are changes to Paragraph 2, 5, 6, 20 and more.  Come learn how to take advantage of the changes for your clients, and protect yourself with knowledge.

Richard Weeks, Senior VP Administration, Investable Realty Office Manager.
Richard Weeks, REALTOR®, Broker Associate, GRI, ePro, EAgent.

Richard Weeks is a native Texan. After graduating from Lamar University with a Bachelors of Business Administration he joined the Army and is a Vietnam veteran serving from 1969 to 1971. He was awarded the National Defense Service Medal, Vietnam Service Medal, Vietnam Campaign Medal, and the Army Commendation Medal.

After being honorably discharged he worked in the Information Technology field for many years before deciding to become involved in real estate.

Real estate is definitely a passion for Richard. He holds a broker’s license and also is a Graduate Of The Realtors® Institute which is the mark of a real estate professional who has made the commitment to provide a high level of professional services by securing a strong educational foundation. REALTORS® with the GRI designation are highly trained in many areas of real estate to better serve and protect their clients.

  • He is also a certified instructor by the Texas Real Estate Commission. He has taught real estate courses at both the college and proprietary real estate school level.
  • He is a member of the MetroTex Association of REALTORS®, The Texas Association of REALTORS®, and The National Association of REALTORS®.
  • He is a highly skilled negotiator and is very detailed oriented. With intricate knowledge of contract and transactions he is committed to explore all resources necessary to market your property or find the perfect home. Will aggressively negotiate and address any concerns during the selling or buying process. Always available to answer any questions and believes communication is the key to a successful relationship.

Richard is currently the office manager for Investable Realty and he is dedicated to the individual success of each Investable Realty agent.

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