REI WEALTH MAGAZINE

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LLC

Contrarian RE Fund 1, LLC Introduced as Investment Opportunity in Distressed Real Estate Assets

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Real estate veteran and turnaround specialist James King has introduced a real estate investment fund, providing people with the opportunity to invest in distressed real estate assets. The Contrarian RE Fund 1, LLC, researches, identifies and acquires multifamily and manufactured home communities that are being sold at steep discounts.

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“These opportunities are beginning to present themselves as more distressed assets are coming online and property owners are struggling with increased debt,” said King, who along with his team of professionals has successfully owned and operated more than 2,000 units across the United States. “We are actively identifying distressed real estate assets and reviewing if they are viable options for our “Value-Add” business model. If they are, we are making purchase decisions regarding the properties and investigating the level of enhancements and improvements that need to be made for each property.”

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The Contrarian RE Fund 1’s “Value-Add” business model has realized significant profits since King first started implementing it in 2009. By purchasing properties with low rental rates and making substantial physical and operational enhancements that improve both the property and resident experience, King has been able to consistently achieve higher rental rates and refinance initial capital investment.

More information regarding the Contrarian RE Fund is available by contacting James King at KingCommunities.com ([email protected]).

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LLC for Real Estate Investing

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Image from Pixabay

By Stephanie Mojica

A critical step for new and existing real estate investors is to form an LLC or Limited Liability Company. In the simplest of terms, an LLC protects an investor’s personal assets — whether those are cash, bank accounts, or personal property.

Whether the investor is into flipping houses or being a landlord, an LLC ensures that the person himself or herself does not actually owe any debt. The company is responsible for any contracts, debts, lawsuits, leases, and liabilities.

If business goes bad, the people and companies that believe they are owed money can only pursue the LLC — not the individual(s) behind the company unless fraud or another crime was involved, according to Yahoo! Finance.

However, there are some critical steps to take even after a real estate investor forms an LLC. Any properties must be purchased in the company’s name, not an individual’s name. This ensures the ultimate protection.

If someone buys a home to flip or rent out and ends up owing more on the mortgage than the property is worth, the bank cannot come after the individual if the home is officially owned by the LLC.

Image from Pixabay

A caveat is that many banks do not want to issue mortgage notes to a new LLC, because it’s risky for them. That’s why a business plan is so important. (See our past article “House Flippers Need a Business Plan” for a more in-depth discussion on this topic.)

Other potential drawbacks to an LLC come at tax time and when an individual transfers assets to it, so an attorney is probably a necessary resource, according to LegalZoom.com. Also, each state has different laws regarding an LLC.

However, done properly, an LLC seems to have more benefits than downsides. Other good news is that the costs are usually minimal. As always, before making any major decisions in such areas speak to a qualified real estate attorney.

Sources for this article:

https://finance.yahoo.com/news/form-llc-real-estate-investing-194323289.html

https://www.legalzoom.com/articles/forming-an-llc-for-real-estate-investments-pros-cons

http://reiwealthmag.com/house-flippers-need-a-business-plan/

Deeds & LLCs: Finding Success In Real Estate Investing In 30 Days

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By Tim Houghten, Staff Writer

Whether you’ve spent substantial amounts on real estate education and are still struggling to get results, or you are ready to make a big splash and claim your piece of the pie and invest, how can you start really gaining traction in the next four weeks?

Real estate investor and entrepreneur Jason O. Myles has become a magnet for people in both of these camps. He specializes in helping those that want to get real, and meaningful results from investing in real estate, quickly.

That’s true whether you’ve been hustling and grinding hard, but just haven’t gotten in your zone yet. As well as those with capital to invest, but who need to do it efficiently and effectively, while staying on track to their real objectives.

Deeds & LLCs – An Investor’s Toolbox

No matter where you are on your money and investment journey, Jason O. Myles has been there already. He has run into the frustrations and roadblocks, and has found how to consistently navigate them for optimal success.

Twenty years ago, Myles discovered the life changing advantages of making the leap into real estate. Before there was Facebook or Siri, he spent his spare moments going to the local library to read and learn everything he could about investing in real estate. He tried reaching out to educators and the experienced by writing them letters.

He admits that he didn’t make much money in those first few years. He saw others making money in real estate and knew it was real. He just wasn’t putting those dollars in his own pocket. He had tried to piece together some strategies and tactics from gurus, but when he took them into the field most people thought he was crazy or deluded.

He got frustrated, but wasn’t going to give up. Myles started calling everyone he could find to get answers. Finally, with a few tweaks, he put his first $6,000 check in the bank in just three weeks. Then, the next week he put an $18,000 check in the bank. He was hooked. It was real.

He got noticed by Robert G. Allen for the deals he was doing, and ended up crafting the manual they would acquire to train others to invest in real estate.

Robert G. Allen has of course become a mentor to many, and has been praised by successful leaders like Brian Tracy, Jack Canfield, Robert Kiyosaki and Stephen Covey.

It turned out that Jason Myles had quite a skill at creating systems and processes. That has since led him to be involved in tens of millions of dollars of real estate deals from Florida to Georgia, to the Carolinas, Ohio, Indiana and Texas.

Going beyond just starting in single-family homes, he has engaged in multifamily, land, and commercial and industrial deals.

Today, many come to him that have invested heavily in other real estate programs, and have come out without all of the tools and organization they really need to start knocking out those deals. As well as many with over $1M in liquid capital they want to put to work in real estate. Like the dentist from TX who started investing passively with Jason, and pretty quickly was able to move on from tinkering in people’s mouths all day to operating his own real estate investment firm.

How To Be Successful In 30 Days

It is important to point out that Jason O. Myles is adamant that he is not selling get rich quick and fast money programs. There are plenty of other people out there on the web that do that, if you are just looking for the next scheme to make a quick buck.

Instead, Myles has differentiated himself and his tools, by aligning his interests with his investors, and by structuring the processes that will help them start seeing actual progress inside 30 days.

Through several programs he has structured guides and systems that mean he isn’t making money unless his clients and students are. A refreshing change from what we’ve seen in the industry over the past few years.

Additional Resources For Active Investors

Via his website, www.RealEstatePro360.com, Myles¬ provides access to a variety of paths to take you to the next level financially through real estate investing.

For those limited on capital, who are ready to hustle to achieve things and make them happen, there is Ultimate Real Estate Hacks. A process designed to help investors put everything they need in place and at a minimum get their first deal under contract inside the first 30 days.

This includes using strategies like virtual wholesaling and flipping. Along with the documents, spreadsheets and calculators you need to quickly and accurately value properties, assess renovation costs by region and types of materials, and to connect with your success team. There are weekly calls and an online support group to get answers fast.

There are funding programs and partnership programs, which provide investors the resources and support they need to do real deals and make real profits.

For Passive Investors

For those with capital to invest, Jason provides guidance and processes to put that money to work simply, efficiently and passively. Methods that generate strong returns, in solid investments, without having to deal with contractors and property managers. It is about making your money work hard for you for cash flow and returns, while you actually get to enjoy your life. Get your piece of the pie and have a life worth living too.

What’s Next For The Real Estate Market: Blood In The Streets

It’s going to be okay Chicken Little.

During Realty 411’s exclusive interview with Jason O. Miles, he told us that he is “always bullish on real estate.”

He has certainly been in the business long enough to know what the cycles look like. As well as that there is always money to be made, and how to do it.

His newest book Blood In The Streets tackles some of the fear and pessimism out there, and busts some frequent myths about the market and investing. He doesn’t believe there is impending doom. In fact, he sees ongoing growth.

When there is a cooling in markets, he says it is all about positioning yourself in advance to take advantage of the great deals.

One of the ways that he is preparing investors to do this too is through the CARV Method. A way to evaluate potential real estate deals and to structure them for multiple exit strategies and to avoid leaving money on the table in these times as most do.

Get Your 4-Week Action Plan

If you are among those craving better results from real estate investing in the next 30 days, and to be able to invest with confidence, you can download your complimentary 4-Week Action Plan at www.RealEstatePro360.com.

There you will also find more of his story, books, courses, and how to get in touch with him directly. Or connect with him on social @jasonomyles. Then be sure to stop by and meet him in person at one of our upcoming live real estate events.

No matter where you are on your financial journey in real estate Jason has probably been there already, and can show you how he found the breakthrough and process to make it through to the other side.

Maximum Asset Protection – Tips and Information

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By Kathy Kennebrook (The Marketing Magic Lady)

A Discussion on the Importance of Protecting Your Assets

Throughout your life, no matter who you are or how you earn your living, you need to be concerned about protecting your assets. Your assets may include your home, vehicles, jewelry, boats, artwork, properties and whatever other assets you accumulate along the way.

After all, you work hard for what you have and there are always going to be people out there who want something for nothing. The more money you have the greater a target you become, and you’ll want to protect yourself from frivolous lawsuits.

In the real estate investing business this is especially true. The real estate business is one of those where you will be piling up assets quickly. If you are holding properties and you have tenants or tenant/buyers in your properties, this can make you an even bigger target for possible lawsuits.

For this reason alone you want to be holding your assets in another entity, such as a land trust in order to keep your name off of public record. The main advantage to purchasing properties in land trusts or other entities is anonymity.

If everything you own is in your own name, it makes it easy for someone who wants to sue you to find out what you have. If a plaintiff’s attorney looks on public record and it appears that you have nothing, you are much less likely to be sued.

If you are holding properties in land trusts, corporations or LLCs this prevents your name from showing up on public records; making it appear that you don’t personally own anything; and that is the whole idea. You want to hide your assets from creditors and predators. There are a lot of people out there who want what you have, but they don’t want to work to get it.

As you begin to grow your real estate business, you need to begin thinking about protecting yourself and your assets along the way. Make sure you begin working with a reliable real estate attorney who can help you grow and protect your business.

Make sure they understand the importance of purchasing properties in land trusts or in entities that do not represent you personally. If they don’t want to do things your way, find someone who will.

In addition, you want to be thinking about placing other items of value that you own, such as bank accounts, jewelry, vehicles, boats or artwork in property trusts. This will protect these assets from showing up should you be sued for any reason.

You also need to be working with reliable a financial planner and a CPA in your business in order to protect you assets by investing them well with a diverse portfolio. Your CPA will also help you hold on to your assets by finding ways for you to legally pay fewer taxes on the income from your business.

The real estate business is one of those businesses where there are a lot of great tax deductions for you if you structure your business correctly. You also want to think about diversifying your assets so that you don’t have all your “eggs” in one basket. As the markets continue to fluctuate this becomes even more important for protecting your assets.

Your CPA and your financial planner can also help you structure your assets so that if something happens to you, your assets will be distributed to children, grandchildren, charities or whomever you choose in a way that is fluid with the least amount of taxes and stress.

This way there is no question as to how the distribution of your assets will be handled if something were to happen to you and this can save your family a lot of hassles later on.

Protecting your assets while you are still around to enjoy them is going to be very important to securing a future for you and your family.

For more information on asset protection and all other aspects of real estate investing, visit my website at www.marketingmagiclady.com.

LEARN DIRECTLY FROM KATHY KENNEBROOK AT REALTY411’S VIRTUAL WEEKEND INVESTOR EXPO, CLICK HERE!

Empire Industries, LLC…Your Partner in Investing Success

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By Kevin Davidson

After his job was threatened by the aftermath of 9/11, Steve Rozenberg, co-founder of Empire Industries, LLC realized that obtaining financial freedom through investing in property is a much surer way of building wealth than working for someone else.

“I’m an airline pilot by trade,” said Steve. “I fly for a commercial airline, and so after 9/11 hit, I was on the verge of being out of a job. That’s when I realized that I needed to do something else to earn money because that secure job didn’t look quite as secure as I’d thought.”

“So what I did is, I started learning everything I could about real estate. I started trying to understand it. I read a book a week on real estate and I devoured as much information as I could so I could figure out this new society…this new language that I was engulfed in.”

“Then I started buying some houses. I sold a few houses then ended up buying an apartment complex.  I sold the apartment complex and started buying a bunch of low income property, which is probably my biggest mistake.”

Steve met Pete in 2005 and the two began flipping houses together before switching to a buy and hold strategy. Then, after buying twenty low income houses within a year and a half, the two realized they’d made a mistake.

“We realized why we shouldn’t have done that. All of a sudden we had a huge waterfall of problems attacking us from all angles so we did what any normal male would do, we turned around and bought another 15 properties to try to fix the problem, which really just ended up being like gasoline on the fire for us. It just ended up making our problems ten times worse!”

The solution they created for their problem became Empire Industries, LLC.

“So to solve the problem we’d gotten ourselves into, we had to create a management company of our own, just to manage our own properties.”

“This is how the management company got started. We started it out of necessity, from the result of making our own mistakes of buying the wrong properties, but also figuring solutions out for that.”

Investor solution

Today, Empire Industries, LLC is the fastest growing single family management company in Texas. They manage about 750 properties in Houston and Dallas, and have a client base that spans the globe. Investors from California to Japan use Empire Industries for their property management needs.

“We’re the number one referred management company by realtors,” said Steve. “We give referral fees to our agents and we make them look good. At the end of the day, what an investor wants is a property that is going to make them money and not give them a headache.”

“Empire Industries is a full service property management company. Our services run the gamut, from helping people find properties to managing their investments, we do it all from an investor’s perspective. Because we’re active investors ourselves, we’re looking at the market from that mindset. We are in the business of helping investors find properties that match their goals.”

“Often, beginning investors fail to see results because they don’t have policies, procedures and structures in place…they run it off of emotions, not a business model.”

“What I always tell people is that when it comes to owning a rental property you own a business. Whether you have one or fifty properties, you run a business. Fair housing, discrimination…all of these laws that dictate what you do as a landlord say that you’re a business and the only one that does not realize they’re a business is the owner.”

Investors choose Empire Industries, LLC because they’re more than a property management company. As active investors, the founders are in “the heat of battle of owning properties.”

“We look at it from an investor’s perspective,” said Steve, “as a partner, not as just a customer/client relationship. This means our goal is to help them be successful and to reach their financial goals, whatever those goals may be.”

Investor education

From hundreds of free videos to free ebooks, investors have access to a huge resource of information…for free…from the team at Empire Industries, LLC.

Ask any savvy investor and they’ll tell you…learning as much as possible about investing in property is key to achieving success.

“Most importantly, have a plan,” said Steve. “If you don’t have a plan and you don’t have goals you need to talk to someone like myself and figure out what your goals are so that when you’re trying to find a deal you can know what that deal is, based on your goals.”

 

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