in september estate planning for real estate investorsfiles.meetup.com/18413414/creia0916e.pdf ·...
TRANSCRIPT
Hilton Biltmore Park 43 Town Square Blvd., Asheville, NC, 28803
5:30 p.m. - Networking, Hotel Lounge6:30 p.m. - Meeting Begins
o CREIA Monthly Meeting – Sept. 12, 5:30 p.m. networking, 6:30 p.m. meeting, Hilton Biltmore Park, 43 Town Square Blvd., Asheville, 28803.
o Advanced Investors Group – Sept. 14, 8 a.m. Contact Tex for details, (828) 273-8565, [email protected].
o New Member Orientation – Sept. 14, 6 p.m., Standard Pizza Company, 755 Biltmore Ave., Asheville, 28803. Contact Bob for details, (910) 262-8863, [email protected].
Private Money Lending Group – Sept. 15, 5 p.m., Keller Williams, 86 Asheland, Ave., Asheville, 28801. Contact George for details, (828) 231-4246, [email protected].
Intermediate Investors Group – Sept. 21, 6 p.m., Enka-Candler Library, 1404 Sand Hill Rd., Candler, 28715. Contact Gary for details, (206) 779-5870, [email protected].
o Beginners Investors Group – Sept. 22, 6 p.m., Denny’s, 1 Regent Park Boulevard, Asheville, 28806. Contact Greg for details, (828) 774-4887, [email protected].
o Estate Planning Seminar – Sept. 24, 9 a.m.-4 p.m., Hilton Biltmore Park, Asheville,28803.
o Hendersonville Focus Group – Sept. 27, 7 p.m. (dinner at 6), Bay Breeze Restaurant, 1830 Asheville Hwy., Hendersonville, 28791. Contact Tom for details, (828) 697-6716, [email protected].
Overlooked home problem areas – Page 3
Longtime member Walt Plaue dies – Page 4
Public Policy Committee Update – Page 5
New Intermedia Investors Group – Page 6
Flipping houses in your IRA – Page 7
– Continued Page 2
– Continued Page 2
Next Meeting – September 12
Estate Planning for Real Estate Investors
September 2016
The benefits of pushing yourself to the limits
It’s up to you to take charge now to ensure you keep the value you’re creating with your real estate investments
• Estate planning – establish now what’s needed to live today and for the future
• Self-directed IRAs – make sure to maximize and protect your real estate investments
• 1031 exchanges – even if you don’t need it today, you must know this for future deals
September 12 CREIA Main MeetingMonday, September 12, Hilton Biltmore ParkMary will give an overview with a few strong takeaways with much more info coming
for those attending the Saturday workshop two weeks later.
Saturday, September 24, 9 a.m. - 4 p.m., Hilton Biltmore ParkFee: $79 members/$99 non-members. $10 discount for
early registration (by September 12 Meeting). Register at: More info, registration here.
About Mary: Mary Hart is an attorney and owner of The Hart Law Group, P.C. in Asheville. Mary has been
practicing law for 25 years and has spent years teaching real
By Rodrigo AfanadorCREIA President
And we were off. With my friend Scott setting the pace, our challenging bike journey began, my first century ride, 100 miles in one day. Our deci-sion to ride came just a week before our departure, so my preparation was minimal. Little did I know that my mental and physi-cal limits were going to be pushed in a way they had never been pushed before and that many lessons would be learned.
The ride started just north of Boone.
After five or six hours, we pulled into the Linville Falls Visitor Center on the Blue Ridge Parkway. We were out of water and wanted to take a breather before tackling the climb over Mt. Mitchell. Optimism was high as we had just completed a small downhill. For the next six hours, all we did was climb – no downhill, no flat parts, just steady never-ending uphill.
In September
September 2016 ©2016 Carolinas Real Estate Investors Association, Inc. All rights reserved.
Page 2 Online at www.creianc.org
Participating Whole Life Insurance helps allow you to:4 Protect your Family and Investments through Life InsuranceDeathBenefits*4 Shield your Cash and Savings from the Volatility of the Stock Market4 Have complete Control over the Use & Liquidity of your OWN Money for Real Estate needs4 Create a Personal Pool of SAFE Resources to Access for Real Estate Needs
4 Develop a Tax Advantaged and Tax Deferred Retirement Program
Call Scott McDonald to learn more!!
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A Participating Whole Life Insurance Policy allows individuals and businesses to take advantage of Living Benefits in ways that most could never have imagined
The only way I could keep moving forward was by listening to music and matching my cadence to the music’s beat.
By the time we reached the top, it was just after 11:30 p.m., 14 hours after we had pushed off. We sat on the edge of the road and ate our last bits of food. Thankfully, the last stretch to the house was all downhill. About an hour later, we finally pulled into our driveway. Although an amazing feat had just occurred, the only thing I wanted to do was to find the floor in my room and lie down, which I did.
This endeavor was one of the most mentally and physically challenging I had ever undertaken. I was grossly unprepared for what was required. However, knowing that my friend Bolte was
five, 10, or 30 minutes ahead of me helped keep me pushing forward.
I find striking similarities between real estate and outdoor adventure. Preparation, guidance, support, vision and grit are important in both worlds. Having contact with others who face similar challenges and are a little ahead of me keeps me hopeful and focused. Being properly trained makes a huge difference in how I handle the difficult situations inherent in outdoor adventure and in real estate. The mental fortitude that comes from pushing my body to its physical, mental, and emotional limits in different pursuits has been key for me in real estate. Knowing what I am ca-pable in one area of life has helped me build confidence in others. The ripple effect cannot be understated.
Pushing myself to the limit physically and mentally is impor-tant. Putting myself in challenging situations helps strengthen my mental resolve and reminds me that we are all capable of more than we imagine. We need to continue to push the limit of what we believe is possible for ourselves – not only mentally and physically, but in all areas of our life. Keeping this perspective is important as it promotes aggressive growth and allows life to be full of adventure and growth.
What challenges are you inviting into your life that will help you grow?
(Rodrigo Afandor is CREIA President. He is the passionate founder and business owner of Asheville Cash Buyers and a com-mitted community volunteer. Rodrigo has purchased and resold more than 25 properties in the Asheville, NC area and enjoys the challenge that comes with resolving complex financial situations for his clients.)
estate investors and others how to accelerate and preserve wealth through estate planning, asset protection planning, investing
with self-directed IRAs, private money lending, selling real estate through a section 1031 tax-deferred exchange and more. Mary established The Hart Law Group, P.C., in 2006 in Asheville. She has been voted the #1 attorney in Asheville by Mountain Xpress (a local independent publication) readers for the last two years. She is also the owner of Carolina 1031 Exchange, LLC, which serves as a qualified intermediary and exchange accommodation titleholder for section 1031 like-kind tax-deferred exchanges.
Mary particularly enjoys empowering others with the knowl-edge to live a financially successful life and the means to pass that wealth onto loved ones – which she considers to be the ultimate love letter! Although Mary enjoys the practice of law, she knows she can empower more people through education. Mary believes that financial literacy is missing in the lives of most Americans as financial education is not generally taught in the school system. She hopes to help raise awareness of the impor-tance of financial knowledge to the quality of life of all Americans.
Mary is also a North Carolina licensed Realtor and an active real estate investor, owning several properties in North Carolina and Kentucky.
Next Meeting, Wednesday September 14, 8 a.m.
• Discuss challenges, solutions and network with other seasoned investors
• 8-10 a.m., second Wednesday of each month• Breakfast meeting/mastermind group format• Open to members who have completed at least 20 deals• Limited each month to the first 20 responding
Call or email Tex for details, (828) 273-8565 [email protected]
Advanced Investors Group
September 2016 ©2016 Carolinas Real Estate Investors Association, Inc. All rights reserved.
Online at www.creianc.org Page 3
Our team started personally investing in the Asheville real estate market in 2004.
We will help you:3 Run the numbers3 Create exit strategies3 Provide recommendations for cost effective improvements3 Make financially sound offers3 List your property
We Understand Real EstateInvesting
Contact us today.
Mary LoveLove The Green Team Leader
www.lovethegreen.org
Our team started personally investing in the Asheville real estate market in 2004.
We will help you:3 Run the numbers3 Create exit strategies3 Provide recommendations for cost effective improvements3 Make financially sound offers3 List your property
We Understand Real EstateInvesting
Contact us today.
Mary LoveLove The Green Team Leader
www.lovethegreen.org
By Mary PalermoRainbow International of Asheville
If you have fire, smoke, or water damage, you probably know it right away. Rainbow provides expert services for these cleanups 24/7 in emergencies.
But three other areas can lead to problems you may not know you have – or maybe think aren’t that important.
Carpet, other flooring, and upholstery: When was the last time you had your carpet, area rugs or upholstery cleaned? Years? Never? Do you have pets, children, or visitors? Food and drink spills may not have been cleaned up adequately. And there may be unknowns. Carpets and upholstery can hold a lot of allergens. Skin cells and dust mites can be issues. They can be a source of microbial growth.
Do you have tile flooring in your bathrooms, kitchen, or other rooms? If so, you have tile grout. Grout is notorious for growing mold. Not all mold is black and noticeable.
Indoor air: Every home has indoor air – that really goes without saying. But how is the quality of that air? You are breathing what-ever is in it besides the usual gases. Do you smell anything differ-ent or strange when you come into your home after being gone for a while? Do you ever think to check for odors in your home when you enter? Most of us are so busy we’re preoccupied with just get-ting in and getting something done. If you have ventilation, when did you last check your air ducts? Even though you have air filters
on your return vents, some antigens may still form in your ducts.Crawl space: When was the last time you looked in the crawl
space under your home? These spaces can present many prob-lems. Do you have adequate insulation to reduce your heating and cooling costs? Undesirable animals may take up residence, maybe using some of the insulation you have to make their own bedding. These animals may die there. Trash can accumulate over time and become a hazard. It can be damp there, possibly leading to odors and mold.
(To learn more about how Rainbow International Restoration of Asheville can help with fire and water damage, mold, clearning and deodorizing and a host of other problems, visit rainbowintl.com/asheville.)
Next Meeting, Thursday September 22, 6 p.m.
• Meets last Thursday of tbe month from 6-8 p.m. at Denny’s, 1 Regent Park Blvd, Asheville, 28806
• Integrates CASHFLOW 101 game in learning financial basics and features presentations from experienced investors in helping its members get their first (or second) deal done.
Call or email Greg for details, (828) [email protected]
Beginners Focus Group
Three home problem areas often overlooked
Do you have property that seems complicated? Are you looking at a property you know has value and you can’t quite define or detail it? Would you like some creative advice to move forward in your business plan?
We have +15 years experience in creating the next steps in real estate investing.
If you are “stalled out” in your planning department because of perceived “complexities,” call us.
One free half-hour consultation may be the answer. And we can manage your next steps if you choose.
We gather the facts to assess the Real Estate Solution and execute the selected course of action chosen by our Client.
Turn your liabilities into assets
Page 4 Online at www.creianc.org
September 2016 ©2016 Carolinas Real Estate Investors Association, Inc. All rights reserved.
Next Meeting, Tuesday, September 27, 6 p.m.
Lessons Learned in Renovating and Restoring Distressed Properties will be presented by Judi and Steve Levinson. Their real etate investment careers began in South Florida and grew to 400 rental apartments along with commercial buildings and two hotels. Moving to Hendersonville in 2008 with plans to retire, they couldn’t resist returning to investing in single-fam-ily home foreclosures, subdivision and building lot develop-ment, and commercial property. They will share their lessons learned including: how to evaluate and deal with different investing conditions/markets/geographic areas, legal issues, self-management versus contracted property management and single-family rehabbing. Come learn from two creative investors/entrepreneurs.
Meets the last Tuesday of the monthBay Breeze Restaurant
1830 Asheville Highway, Hendersonville, NC 28791Dinner & Networking - 6 p.m. Meeting - 7 p.m.
Questions: Tom Boyd - 828-697-6716 [email protected]
Our longtime member Walt Plaue has passed away.
Walt was born and went to high school in New York. He went on to attend West Point and was commissioned an officer in the U.S. Army, where he had a long and productive career. Returning to civilian life in 1978, he became a certified financial planner.
Walt and his wife Patsy moved to Asheville in 1990 and he worked hard in a number of service projects with quite a number of different charities in the local area. He also became a real estate investor and hooked up with CREIA.
In Walt’s time with CREIA, he served on a number of commit-tees. His participation in the Public Policy Committee and work-ing with city and county governments helped keep members aware of rules and regulations and how they affected CREIA’s membership.
Walt was an active investor - always looking for an invest-ment that would be productive for him and his family. He attended meetings faithfully and was always involved in the discussions. He will be missed.
Longtime CREIA member Walt Plaue dies
Online at www.creianc.org Page 5
September 2016 ©2016 Carolinas Real Estate Investors Association, Inc. All rights reserved.
Public Policy Committee:Update on meetings, volunteer opportunitiesBy Art MeyersPubic Policy Committee Chair
The next meeting of the Asheville City Council begins at 5 p.m., September 6, in council chambers on the second floor of City Hall.
Meetings of the council on the second and fourth Thursdays of each month are televised live on the Asheville City Channel and also on Charter channel 193 and U-Verse channel 99.
There are YouTube archives of city council meetings and other meetings and workshops, such as the Small Scale Residential Infill Workshop available at youtube.com/user/cityofAsheville.
The YouTube archives are an awesome source of public policy information the April 7, 2016, public meeting on the draft form-based code for the River Arts District. There are also links to short instructional videos (what form-based code means for instance).
Information on other meeting dates and times is available from the meetings and community events link of the city website at ashevillenc.gov. The search feature on the city’s site is also an invaluable resource. A search for Asheville city plans, for instance, yields results that include the Asheville 2025 Plan, Affordable Housing Plan, Downtown Master Plan, Ten Year Plan to End Home-
lessness and many others.For those of you who would like a voice in the city’s growth and
future, there are presently openings on three city committees: the Affordable Housing Advisory Committee, Tourism Development Authority and Recreation Board. For further information on these openings and future openings, visit the city’s website and select Boards and Committees under the government tab. Deadline to apply for these openings is 7 p.m. September 7. To apply, contact the city clerk’s office at 259-5601.
Volunteer opportunities with the city of Asheville are also avail-able. Volunteering helps individuals make connections and better keep in touch with what’s going on in the city. Opportunities are available to fit most any schedule and range from a one-time ser-vice projects lasting a half day to longer range commitments that might require several hours each week. There’s also a process to work with citizens to identify new and innovative volunteer proj-ects, so if you have an interest or special talent to share, contact, Marsha Stickford, volunteer coordinator, at 259-5506.
Be sure to wear your CREIA nametag at these events to let everyone know who you are and spur interest and conversations about our organization. Please participate and remember that the world is run by those who show up.
If you don’t build your dream, someone else will hire you to help them build theirs.
– Dhirubhai Ambani
Page 6 Online at www.creianc.org
September 2016 ©2016 Carolinas Real Estate Investors Association, Inc. All rights reserved.
Call Rent-A-Home Asheville to market OR manage your most important assets.We offer two levels of service:
1. marketing property for lease, showing property, screening applicants, handling lease signing
2. the above PLUS professional, personalized property management
You hire a money manager to handle your money, why should your rental property be any different?
We have 25 years experience and manage over 800 properties in the Greensboro market. Let us show you what you can do!
CREIA members can try our marketing package at a one-time 25% off discount.
Call or email today(828) 676-6764
By Gary StamperWe had a great first meeting!The second meeting of the newly-formed CREIA Intermedi-
ate Investors Group will be held at the Enka-Candler Library, just down the street from A-B Tech’s Enka Campus, on Wednesday September 21, from 6 p.m. to 8 p.m.
Created by attendees of the CREIA Mastermind Group, the Intermediate Investors Group was formed to fill the void between existing Beginner’s and Advanced Groups. Those wishing to attend should have a few deals under their belt and a desire to help others and themselves to greater success.
Space is limited, so the meetings will likely be held to the first 20 people who reserve spots. Come and ensure your place in the CREIA Investor’s Hall of Fame or just learn how to be a better investor.
For more information, call or email me at 206-779-5870, [email protected].
The library is located at 1404 Sand Hill Rd., Candler, NC 28715
CREIA Intermediate Investors GroupNow Meeting Monthly! Connect To Opportunities
CRIEA’s success depends on volunteers. Connect-ing to opportunities will open doors for you and fast track building your real estate business.
Contact a leadership team member to learn more.
• Member retention • Welcome new members • General meeting • Meetup.com responder to new visitors • Member benefits program expansionAnd many more opportunities!
Education Committee: • Seminars & Workshops • General meeting programing topics • Event speakersMarketing Committee: • Social Media • Website • Newsletter • Corporate & Affiliate SponsorsMembership Committee:
National REIA Supplement 3rd Quarter 2016
BenefitsUpdate
Renters Insurance Through realprotect Protects Your Tenants and Gives You Piece of Mind
You already know the great value of the insurance products realprotect offers you as a benefit of Na-tional REIA membership. Their exclusive policies are designed to meet the specific needs of the real estate investor by reducing your insurance costs and managing risk. Now they are talking it one step further by offering another layer of protection through preferred renters insurance – designed for your tenants, with you in mind.
By requiring your tenant to carry renters insurance through realprotect you will ensure that your prop-erty has the extra layer of protection that you already require. For as little as $5 per month, your tenant can purchase basic renters insurance and, for an additional premium, they can add coverage for their belongings - including valuable articles.
And the good news? You’re listed as an additional interest on their policy so that you know their policy is valid!
Why should you require your tenant to carry a renters insurance policy? Because, renters insurance though realprotect:
• Protects your tenant’s belongings.• Provides personal liability to your tenant.• In the event you have a property insurance loss that is tenant caused, the renters insurance policy may become primary, thus avoiding a claim on your policy.• Avoids you potentially becoming primarily liable for the actions of your tenants, their guests and their pets.• Provides you with a peace of mind!Insurance programs offered by realprotect have been designed specifically for the 1-4 family dwelling real estate investor. Whether you own 1 home or thousands, realprotect can help you reduce your insurance costs and properly manage your risk. They are the experts in insuring real estate investors and understand the real estate business. They understand what investors like you look for and need in a comprehensive insurance program.
www.realprotect.comph: 800-579-0652 (option 3)
Get a Quote!
National REIAph 888-762-7342
www.NationalReia.org@nationalreia
National REIA Supplement 3rd Quarter 2016
Investigative Screening & Consulting’s ISC Connect is the solu-tion rental property owners & managers have been crying out for. They’ve combined the hands-on human element of investi-gative techniques with the speed, convenience, and cost-cutting power of the digital age to provide you with an all-in-one, mobile web-enabled screening process. The ISC Connect Online Lease Agreement allows you to send your tenant(s) a customized lease agreement, electronically and securely!
No more having to create or search for a lease; just generate it, and they’ll securely hold on to it for you! They have included all the legal greatness of a normal lease, and made it easy to customize to your specific property by adding terms such as: Lease Start and End Dates, Monthly Rent, Additional Lessees and Authorized Occupants, and of course Security Deposits and Concessions. Your tenant (and you) will then electronically sign the lease, which is then conveniently stored and available in your account, viewable at anytime! National REIA members receive a discounted $0.95 set up fee for this program.
In addition to their Online Lease, ISC now features a way to make renters insurance required for your rental property addresses. Tenants are notified via the ISC portal and, through a partnership with realprotect, given access to special discounts on a new policy – starting as low as $5 per month.
Sign up today and see why ISC Connect has become the one tools hundreds of property owners and managers cannot live without. ISC allows you to rent perfect!
ISC Connect Takes the Hassle out of Leases;Allows You to Rent Perfect!
Legislative Update
National REIA Supplement 3rd Quarter 2016
Seller Finance Reform is on the Way!The Seller Finance Enhancement Act (HR 5301) was recently introduced in Congress by Rep. Roger Williams (R-TX) and Rep. Henry Cuellar (D-TX). The bill will increase the number of allowable seller-financed properties from three to twenty-four per year. The two per month average was considered a reasonable request to the excessive restriction put in place by Dodd-Frank legislation during the recession.
Additionally, HR 5301 would require the Treasury Department to study the housing finance market over the next three years and report back to Congress with suggestions for steps to improve the sales and financing of these homes, especially those with valuations below $150,000 or 60% of the regional median housing value.
HR 5301 keeps in place key consumer safeguards set in place by Dodd-Frank such as limits on interest and balloon payments. The Seller Finance Coalition, of which National REIA is a leading member has been working diligently to see this bill come forward and will continue to grow the number of sponsors as passage is ultimately sought.
Current sponsors include: Rep. Roger Williams (TX-25) and Rep. Henry Cuellar (TX-28), as well as original co-sponsors Rep. Jim Bridenstine (OK -1), Rep. Alan Grayson (FL-9) Rep. Mick Mulvaney (SC -5), Rep. Randy Neugebauer (TX- 19), and Rep. Bobby Rush (IL-1).
The Seller Finance Coalition was formed in February of 2014 to advance the inter-est of the seller finance industry. Founding members of the SFC include Glenn Lee of Texas Funding, Bob Repass and Eddie Speed of Colonial Funding Group, Scot Campbell of S.R. Campbell Properties, and Doug Smith of My House Deals. Na-tional REIA has been a member since 2015.
Your help is needed now! We need you to contact your member of Congress and urge passage of HR 5301.
Visit www.NationalREIA.org/legislativefor more information and to download a letter you can
use to personally contact your Congressman!
Call to Action for HR 5301:
September 2016 ©2016 Carolinas Real Estate Investors Association, Inc. All rights reserved.
Online at www.creianc.org Page 7
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The shortest path from where you are to where you want to be?
As a part of nationally renowned Larry Goin’s Inner Circle Program, you’ll train with Larry and his team
at the offices of The Goins Group in Lake Wylie, SC, learning from active investors buying
10-20 properties a month.
By Jim HittCEO American IRA
The fix-and-flip real estate strategy popular among investors. But many people aren’t sure how to get started because most of their available investment capital happens to be in retirement accounts. But this shouldn’t dissuade you. If you happen to have a strong interest in fixing and flipping houses, and you have the capital available in retirement accounts, you can easily get started flipping homes using a self-directed IRA, also called a real estate IRA.
The concept is simple: The law doesn’t restrict IRA investments to Wall Street investment products like stocks, bonds and mutual funds. Your IRA money doesn’t belong to Wall Street. It belongs to you. And you are free to invest your IRA funds and other tax-advan-taged retirement account funds as you see fit, with just a few small exceptions.
Advantages of Real Estate Investing Within A Self-Directed IRA• All gains are tax-deferred until retirement (or tax-free, if you
use Roth accounts and hold the assets within a Roth account for at least five years.
• All positive cash flow (income and non-income) is tax deferred or tax-free.
• There is no requirement to hold property for 1 year to qualify for better tax rates.
• Assets in retirement accounts enjoy substantial creditor and bankruptcy protection.
• Expense ratio/AUM fees can be minimized, compared to the fees charged by most Wall Street firms. Because real estate trans-actions are relatively large but relatively infrequent, you can pay a fee-per transaction for much less than a company charging you 1 or 2 percent per year in AUM fees would cost.
How to get started1.) First, open an IRA with American IRA, LLC. This is no more
difficult than establishing an account with any other investment company.
2.) Transfer money from another IRA, old 401(k), SEP or other qualified source of funds to the IRA, or contribute up to your an-nually allowable maximum contribution. Most of our clients use a trustee-to-trustee transfer, meaning they authorize a direct rollover
of funds from an existing IRA or 401(k) to the new self-directed ac-count at American IRA.
3.) Then, with your IRA funded, find a deal. That’s your job. That’s the beauty of the self-directed IRA or real estate IRA. You are fully in control. No one else is picking out deals for you. Your success is totally up to your own hard work and savvy in selecting the most promising available real estate deals for your self-directed IRA. You aren’t limited to investments in your state or even the United States. You can go anywhere in the world. You can also invest your real es-tate IRA account in anything from raw land to apartment buildings, duplexes, condominiums, mobile homes and trailer parks, com-mercial property, private notes, hard money lending, construction lending, new construction, and anything else you like.
4.) Tell us where to send the check or wire the money and how much. You should also tell us exactly what we’re buying on your behalf.
5.) Collect your statement. As your real estate IRA administer, we will collect contributions
from you, collect rent and other payments from tenants and cus-tomers and reinvest them in your self-directed IRA in accordance with your instructions. When you want to make a distribution, just let us know and we’ll disburse your funds. American IRA, LLC, will handle all the record keeping and IRS reporting on your IRA’s behalf.
(If you are a house flipper or you are interested in becoming one and want to leverage the tax advantages of your IRA to invest in real estate, contact Ameican IRA at AmericanIRA.com or 866-7500-472(IRA).)
Get started flipping houses in real estate IRA
Page 8 Online at www.creianc.org
September 2016 ©2016 Carolinas Real Estate Investors Association, Inc. All rights reserved.
Next Meeting, September 14, 6 p.m.
New Members OrientationNew to CREIA? Learn how to use your CREIA connection to define and achieve real estate goals?New members and guests are invited to our monthly meet-up. You’ll learn more about:
• CREIA’s purpose and how it functions• Monthly program formats• National and local speakers• Special interest meetups• Local vendor relationships• Networking and education opportunities• Tips to get started and accelerate the learning curve• Time to ask questions in casual get-together!
Meetups: Wednesday following CREIA’s general meetingStandard Pizza Co. , 755 Biltmore Ave., Asheville 28803
Questions? call or text Bob (910) 262 8863
By William Bronchick, J.D.Wholesaling is a simple concept, yet many investors don’t
succeed because they fail to educate themselves enough to pull one off. Wholesaling is simply tying up a deal, then reselling it to another investor for a fee or profit. But, as they say, “The devil is in the details.” Here are five super-practical tips for pulling off a wholesale deal…
Build Your Back-End List First: Too many wholesalers find a deal, then try to “shop” it on Craigslist or show up with flyers at a local REIA meeting. You’re bound to fail if you don’t FIRST build your back-end list of potential buyers, find out what they’re looking for, then go out and find deals they need.
Know How to Estimate Repairs: Most wholesalers are com-pletely inept at estimating rehab repairs, so their numbers are off. There’s nothing worse for your reputation than telling another investor a wholesale house deal you have needs $20k of repairs, when in fact it needs $40k.
Learn what things cost – labor and materials – and make a detailed list that you can show your back-end buyers. Be conser-vative with your estimates. It’s better to be wrong on the high side than the low side. If possible, get a contractor bid or two to back up your assertions.
Proof, Proof, Proof: Don’t just tell your back-end buyers the house is worth $X fixed up. Since most wholesalers are either fibbing or just plain wrong about their resale values, most of your would-be buyers are VERY skeptical. Show them PROOF. Zillow is not proof and neither is a real estate broker’s guesstimate. Provide
multiple comparable sales with pictures, addresses, and details. Put Your Bottom Line Up Front: Many wholesalers mark up their
profit margin too high when peddling their wholesale deal because they are either greedy, dumb, or assume that their back-end buyers will negotiate.
A wholesale offering is one of the FEW instances where it makes sense to offer your bottom line up front. You have a limited deadline to move your wholesale deal, so don’t ask too much be-cause you assume people will negotiate your price.
Most people will pass on it because they are afraid to negoti-ate or they assume that you are not negotiable (and greedy). The key to wholesale deal success is SPEED, so offer your bottom line wholesale price up front, and say it’s not negotiable.
Make It Easy for People to Say “YES!”: You probably get dozens of so-called wholesale deals in your email box. Most are just sum-mary numbers that requires you to do all the homework. In our experience, most of theses deals aren’t real deals, so we rarely take the time to do the homework and we pass on the deal.
This being the case, make it EASY for someone to make a deci-sion. Provide a flyer or link to a Dropbox folder or website with all necessary information: comps, detailed repairs, copy of your pur-chase contract, title search, recommended contractors, hard mon-ey lenders, photos, videos, map to the property, etc. Don’t leave anything out, good news or bad. The more “bait” (information) you provide, the easier it will be for people to bite on your hook.
(William Bronchick, J.D. is a nationally-known attorney, author, speaker and real estate investor. For more information, visit: legal-wiz.com.)
Five practical tips for wholesaling success
September 2016 ©2016 Carolinas Real Estate Investors Association, Inc. All rights reserved.
Online at www.creianc.org Page 9
Stephen C. Wilkie
General ContractorLicensed General Contractor
specializing in Foreclosures
Note PurchasesRemodeling and Rehabbing
Wholesale Cabinets
(828) 273-9191
Next Meeting, Wednesday, Sept. 21, 6 p.m.
The Intermediate Investors Group fills the void between CREIA’s existing Beginner’s and Advanced Groups. Those attending should have a few deals under their belt and a desire to help others and themselves to greater success. Space limited to first 20 people who reserve spots.
Meets the third Wednesday of each month, 6-8 p.m. Enka-Candler Library, 1404 Sand Hill Rd., Candler, NC 28715
Info: Gary Stamper at 206-779-5870 [email protected]
Intermediate Investors
by Bob DiamondWhen I started out in real estate I had no experience, no money,
and no credit. I was not yet an attorney – in fact law school had not even occurred to me. I was working in corporate America and had a dream of real estate millions, but fear was holding me back.
I had friends who felt the same way, so we decided to partner up. Since then, my friends and I have made millions of dollars together. We helped each other get over fear, we raised money from friends and family, split up the work and shared our expertise to work real estate deals together. I doubt I would have ever gotten started without my various partners.
I bet a partnership would help you also. Help you do bigger deals, get over your fears, bring resources you do not have and
split up the work. Partnerships can be great, but they do not last forever (eventu-
ally someone decides they no longer want to work together or a partner dies). When partnerships end, they can end badly in dis-putes and even litigation. That is why smart investors use written partnership agreements to bring the issues out in the open and reach an agreement on key points before the partners have money, work and emotion tied up in a deal.
One of the main holdbacks for investors is understanding what they need to discuss with their prospective partner and having a form to work with.
There are issues you must discuss with your prospective part-ner before doing business as a partnership. Here are ten items you must discuss before entering into an agreement with a prospec-tive partner: Ten discussion items for real estate partners
1. How much money will each partner put up.2. Who will be responsible and pay into the business if extra
Real estate partnerships work
– Continued Page 10
CREIA values our Corporate Sponsors and the ex-pertise they provide. With 250+ members and growing, we know sponsorship can be a win-win for both CREIA and your business.
Benefits include:• One annual CREIA membership• Promote your business with a table at main
meetings and all seminars• Address CREIA membership at a meeting once
a year• Advertise with a quarter-page ad in our monthly
newsletter – also placed on the CREIA website• Post your ad to CREIA’s Yahoo discussion group• Network with current and future members and
enjoy referrals from those members• Increase your contact list.
September 2016 ©2016 Carolinas Real Estate Investors Association, Inc. All rights reserved.
For information on becoming a CREIA Corporate Sponsor, contact Mark Reed, 828-665-7882, [email protected]
Page 10 Online at www.creianc.org
Be sure and support these great sponsors who support your association
• American IRA• Seller Solutions• Rent A Home• Carolina Hard Money• ARC• Stephen Wilkie• The Goins Group• Rainbow Restoration• Love the Green
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Target your market – Become a CREIA Corporate Sponsor
Here’s why you needto join CREIA today!
money is needed due to cost-overruns, slow selling, or for any other reason?
3. Whether either party can sell to a new partner without the existing partners’ permission. If the non-selling partner does not want to give permission how can the partner who wants to sell get out?
4. The exact nature of the business proposed to be done by the partnership. For example: Will you be renting properties, flip-ping them, doing both?
5. What authority each of you will have to sign contracts, hire people, take loans and otherwise bind the partnership to obliga-tions to outside parties. Do you have to agree on every item? Is there a certain amount you can spend before needing permis-sion?
6. How long you plan to work in partnership before splitting up the properties and/or profits?
7. Can each of you do deals outside the partnership or will you do all deals together?
8. Will the partnership be one deal or multiple deals?9. What if the partners cannot agree? How is a deadlock
resolved?10. What happens if a partner dies? Does his share go to
his heirs or will the business pay his estate cash to buy out the shares? (Note: This is usually done with life or key man insur-ance)
Putting a real estate investment partnership togetherUsually you will need a written partnership agreement and you
will also need an operating entity such as an LLC to limit your personal liability. It’s advised you use the help of an attorney in putting together a detailed operating agreement the first few times. It’s a small price for real estate investors to pay for a piece of mind and protection of each member’s interest.
Lastly, in my experience, it is important to distinguish real estate investment partnerships from pooled money from several investors when going into a real estate deal.
(Bob Diamond is a practicing real estate attorney with experi-ence in loan modifications, short sales and real estate litigation, real estate developer, and published author of three books on foreclosure investing.)
• Innovative Financial Planning• The Appliance Doctor• Innovative Financial Planning• Kahl Properties LLC• WNC Real Estate Problem Solvers
All CREIA members receive:4 Monthly Meetings – Learn from informative programs and
real estate professionals, network, buy and sell, keep updated on current laws and regulations.
4 Monthly Newsletter – Keep current with upcoming events, learn from articles on a wide variety of investment topics.
4 National Speaker Seminars – Discounted admission to seminars featuring nationally known experts.
4 Local Speakers Seminars – Discounted admission to seminars featuring local real estate experts.
4 Monthly Focus Group Meetings – Free admission to monthly meetings for new members, beginning investors and advanced investors.
4 Sponsorship Opportunities – Discounted sponsorship rates to promote your business in our newsletter and meetings.
4 Annual Investor Cruise – Enjoy a low-cost cruise sponsored by National REIA that features nationally-known speakers.
4 Home Depot – Twice a year rebate of 2% of purchases along with a 20% discount on paint and primer.
4 Realeflow – Free 30-day trial and monthly discount on Realeflow software that helps find and analyze deals, find buyers, make offers and more.
4 Rentals.com – 30% off standard listings at Rentals.com and bulk discounts for multiple listings.
4 The Real Estate Investment and Funding Association (REIFA) – Access to online platform that connects funders
and investors.4 Local Market Monitor – 25% off all
purchases of Personal Investor Market Reports.
4 Office Depot – Save 15-25% off annual office supply purchases plus 15-55% off more than 1,500 commonly purchased items and discounts on shipping, copying and more.
4 PartnerShip – Discounted shipping with FedEx, UPS Freight, YRC Freight and others for small
packages to large truck loads.
Membership is only $150 for the first year! ($100 annual renewal). For the complete list and more info on all member benefits, visit CREIANC.org.
Online at www.creianc.org Page 11
September 2016 ©2016 Carolinas Real Estate Investors Association, Inc. All rights reserved.
Here’s why you needto join CREIA today!
PresidentRodrigo Afanador(828) [email protected]
Vice PresidentReed Bilbray(972) [email protected]
SecretaryAdvanced Investors Group LeaderTex Teixeira(828) [email protected]
TreasurerNancy Duggan(828) 298-3933 [email protected]
Director of EducationBeginning Investors Group LeaderGreg Anderson (828) 774-4887 [email protected]
Director of Member ServicesBob Swanson(910) 262-8863 [email protected]
Director of Marketing Mark Reed(828) [email protected]
Director of Special ProjectsBill Goacher(828) [email protected]
Chair – Public Policy Commitee Art Meyers(828) [email protected]
L E A D E R S H I PChair - NewsletterDavid Cornwell(828) [email protected]
Hendersonville FG LeaderTom Boyd(828) [email protected]
Office AdministratorEmily Smith(828) [email protected]
The Carolinas Real Estate Investors Association, Inc. (CREIA) is a 501(c)(3) non-profit educational organization dedicated to:1. Providing education and training to help real estate investors learn and
perfect their real estate investment and management skills;2. Encouraging members to netwsork and share experiences; and3. Supporting public policy that encourages thrift and private property
ownership and rights of use.The Association does not itself invest or provide investment, legal or tax advice to individuals.
PO Box 615Asheville, NC 28802
Where Asheville Area Real Estate Investors Learn & Network