Embed Size (px)
DESCRIPTION
AlamoReia.com monthly newsletter for members
Citation preview
October 2013 Newsletter
Association meetings - knowledge, contacts and results
Please feel free to distribute copies of articles contained herein.
Meeting venue is the Josephine Theatre.
Time 7 p.m. on December 12th
First off, the politically incorrect statement.
Merry Christmas and may you and yours have a happy and festive season.
Contents: - December event – Steve Hennigan – National
Foreclosure Update
Collation for Seller Finance
Education – Google Drive
Musings from the office
From the Neighborhood
It could happen
Yahoo Groups for our Members
Education -
Wealth Creation – Phantom Income
It’s a job or wealth creation?
Centers of excellence
Social media – is it working for you?
Meeting event for December.
National Foreclosure Update and Christmas Party
Steve Hennigan
Steve Hennigan currently holds the position of President and Chief Executive Officer for San Antonio Federal Credit Union (SACU) where he is responsible for providing leadership and vision for a cooperatively-owned financial intermediary serving more than 200,000 households in the San Antonio and Houston region.
Prior to becoming President and CEO, Steve held the
role of President and COO for SACU’s entrepreneurial venture created to address the nation’s housing affordability challenges, CU Factory Built Lending, L.P., with a mission to build a national credit union collaboration to promote affordable housing that will provide more financing options for credit union members choosing manufactured housing as an alternative to traditional site-built homes. This initiative is represents SACU’s fastest growing business line with annual revenue growth reaching annual loan production of over $200 million and annual revenue of $50 million after its 5
th year
in operation. Prior to assuming these duties in January 2003, he
served as SACU’s Senior Vice President and Chief Financial
Officer where he was responsible for the leadership of the Finance Division Team. Mr. Hennigan started his employment with SACU in September 1993 as the Director of Treasury Management. Prior to his employment with SACU, Mr. Hennigan has had financial risk management experience in a number of organizations in the financial services industry to include global currency risk management at the Chicago Board of Trade; portfolio management of $2.0 billion structured finance subsidiary of a federally-insured savings and loan designed to purchase whole mortgage loan pass-through certificates for constructing new-issue mortgage-backed securities; and interest rate risk management of a national mortgage bank with a servicing portfolio in excess of $5.0 billion.
Mr. Hennigan’s academic background includes BBA in
Finance and Accounting from St. Mary’s University in San
Antonio; is a licensed Certified Public Accountant (CPA);
has completed Level II examinations of the Chartered
Financial Analyst (CFA) program; and has had post
graduate education at Massachusetts Institute of
Technology in systems dynamics and at Southern
Methodist University’s School of Engineering and Applied
Science in data warehousing and related technologies.
As an individual committed to life-long learning from
the lessons that experiences offer, he is deeply passionate
about creating corporate cultures that emphasize
continuous learning; individual accountability,
This Newsletter is produced by the Alamo Real Estate Investors Association The Association does not purport to offer legal advice and you are encouraged to consult with an attorney about legal matters related to
property transactions.
responsibility and empowerment; and the use of requisite
organizational design to ensure that the organization’s
success is aligned with that of individual team members’
capabilities and potential.
Steve also served from 2001 to 2011 as one of five
Trustees of the City Public Service Board, the 2nd
largest
municipally-owned electric power company in the country
serving nearly one million residential and commercial
customers, where he has served in various capacities as
the Chairman of the Board, and Chairman of the Personnel
Committee and Audit Committees.
Steve is a native of New Orleans, Louisiana and is
married to Tracy Hennigan. He and Tracy have two
daughters: Megan and Callie.
January Speaker
Victor Maas
History: - Creighton School of Law, University of Texas at San Antonio, U.S. Air Force
Qualifications: - Licensed Attorney in the State of Texas, San Antonio Bar Association, Texas Real Estate Broker, San Antonio Board of Realtors, and Texas Association of Realtors.
For over 8 years Victor has invested in real estate.
Since January of 2012, he has been reaching out to other ambitious investors to share with them his years of experience in the real estate investing world. He offers LLC and corporation formations, owner finance closings and docs, partnership agreements, clearing liens and judgments off title, etc. In addition, he is always looking to partner up with or buy wholesale deals from wholesalers.
Having a law degree has opened so many doors for him in the real estate world and he would like to share his experiences with you and make you a real estate success. Contact his office if you need any help with your deals or don't know how to get started.
Every real estate property can make you money. You just need to know how. For example, he once paid $10,000 (rather than $200,000) to the government to remove a federal tax lien on a property so he could clear $25,000
after all expenses. Few investors would have touched this but he likes negotiating these wonderful deals.
His biggest advice is to learn what you can, but get involved with a real estate mentor who can help you overcome obstacles in this wonderful game of monopoly. By the way, he has never lost at monopoly to anyone. The key to making money in real estate is taking action, find motivated sellers, and know your exit strategy. There are roughly 12 ways to profit from real estate and too many ways to find motivated sellers. Without action you will not succeed at real estate or any goals in life.
He is look forward to helping you with your real estate deals and invites you to his seminars. He usually host them about 1-2 times per month. Of use to all is, you cannot expect someone to do this for you or for free. Take action and just do it. Worst feeling in the world is not failure but regret for wasting life.
Good luck in life.
Next Year - March
Carl Fischer is a founder of CamaPlan, a national self-
directed IRA company. He is a national and state certified
educator of professionals and provider of continuing
education for attorneys, financial planners, CPAs and
realtors. Carl is the one professionals turn to when they
need answers. He speaks nationally about the advantages
of using qualified plans to build wealth. His wisdom,
understanding and years of experience working in real
estate, tax rules and regulations, traditional and non-
traditional asset classes and legal documentation make
him a well respected resource in the industry. Carl was a
former owner of Global Financial Resources, a mortgage
broker company, and he is a third generation real estate
investor and president of Presidential Properties. Carl is
and has been active in national and state real estate
associations. From 1977 to 1995, he launched rockets at
Kennedy Space Center and Cape Canaveral Air Force
Station.
Membership
We have a new membership plan (Individual Member
PLUS) that includes one FREE family member or guest at the general meetings. Only $199 per year.
We have also revised the general meeting guest policy and fees. Vendor members may now bring one FREE guest. and any member can bring guests for $10 each.
Basic and Advanced techniques to find hidden real estate deals – where to tool, how to look and what to do. Followed by a bus workshop: - Spend an day with Victor finding and making
deals.
This Newsletter is produced by the Alamo Real Estate Investors Association The Association does not purport to offer legal advice and you are encouraged to consult with an attorney about legal matters related to
property transactions.
Guests that are not accompanied by a member still must pay $20
Coalition
The Coalition for Seller Financing was just started in
late October. No meat yet, it has just started building the Coalition. Here is the link http://realestateinvestingtoday.com/, it was added to National REIA's page with the Distressed Property Coalition and Industry News.
Owner finance is an important part of what we do. The Dodd Frank law and its implementation is becoming an issue for us. Here is a link to a new site founded to fight it. I suggest that all members review it. The link again is: http://realestateinvestingtoday.com/.
Education - Google Drive – Much Needed Tool
Just because it is free does not mean it is valueless. The question is why this is so very important to us
and why has no one spoken about it? Here goes from a non tech person.
The utility allows filing of all documents in one place.
Let’s take single properties. Imagine a hanging file with various paper folders. Each hanging file has a property identifier and the paper folders could be marked 1. Tenant’s, 2. Expenses, 3. Insurance, 4. Mortgages/Loans, 5. Contract/Deed/Closing and 6. Pictures and Photographs.
All of these are useful when out in the field and can
be accessed from practically any device. The important part is being able to access the photographs at any time. It is these selfsame photographs that are going to be used for A. Advertising, B. Move-in condition confirmation and C. Move out confirmation of condition.
What this means is an easy and painless move to a
paperless and more importantly mobile office. From the Google selling bit on the net. Google Drive stores and allows access files anywhere
-- on the web, on your hard drive, or on the go. Here’s how it works:
1. Go to Google Drive on the web at drive.google.com.
2. Install Google Drive on your computer or mobile device.
3. Throw your files in Google Drive. It’s right there on your device.
Now your files go everywhere you do. Change a file
on the web, on your computer, or on your mobile device and it updates on every device where you’ve installed Google Drive. Share, collaborate, or work alone: your files, your choice.
Store the first 15 GB of your stuff for free across Google Drive, Gmail, and Google+ Photos.
Access everything in your Google Drive from all your devices.
Your files are always waiting for you at drive.google.com, but you can also get them straight from your computer, smartphone, and tablet. Install Google Drive on multiple devices and Google Drive makes sure they’re all the same. You can even get to your files after you go offline.
Keep files synced. Just connect to the web – it's pretty much automatic.
Any time your device has Internet access, it checks in with Google Drive. That ensures your files and folders are always up to date. Change something on one device and it changes everywhere.
Stop emailing attachments. Start sharing. Google Drive lets you choose exactly who – friends,
family, colleagues – gets your files. You don’t need email attachments anymore. Just share your file, folder, or Google Doc from any device. This works for us as we can send application forms and pix.
Musings from the office.
People who smile and laugh are more successful
than those who grumble and scowl. What do you do?
The neighborhood
TIP OF THE WEEK
Nov. 18, 2013
WAYS TO DETER VACANCY BREAK-INS PT. 1
• Install Motion lights, fake security signs, and a hundred dollar camera system from Amazon. • One of the handyman who does work for me (been with me for 10+ years) is willing to stay in my empty units during rehab. I just provide him with a bed, a TV, and a few other things. Perhaps you can find a similar person. • Talk to several of the neighbors, adults who have lived there awhile, know the area and have a good idea of what's going on. • Keep it well locked, and rotate the lighting. • Put an (extra) car in the driveway. Acknowledgement and thanks– Mrlandlord.com
This Newsletter is produced by the Alamo Real Estate Investors Association The Association does not purport to offer legal advice and you are encouraged to consult with an attorney about legal matters related to
property transactions.
It could happen.
The bipartisan legislated Sensible Accounting to Value Energy (SAVE) act has a lofty goal- force Fannie Mae, Freddie Mac, the FHA, and other Fed mortgage organizations to recognize and reward family units or individual homeowners who save energy and stay “green”.
This is actually very common outside the U.S. But inside the U.S., it’s still in the lobbying phase. The act, if passed, would work something like this: Say you get a $300,000 mortgage with 5% down payment; the insurance premium comes out to just over $8,000 on your non-green home. Now let’s say you go for a nationally approved, energy efficient property: you qualify for a $825 refund and have your monthly savings on heating factored into your debt-service ratios. In fact, your mortgage lender may approve you for a larger mortgage amount if needed.
The statistics support this- a national study tracking payments on more than 70,000 home loans found that energy-efficient properties default on their mortgages 32% less than non-energy-efficient ones. Though this means less actual capital flowing through the system, it means that more buyers with certain habits or green cares have home owning opportunities. The market rebound truly knows no bounds.
Source: http://www.washingtonpost.com/realestate/energy-conserving-homes-may-soon-get-rewards-from-a-major-mortgage-insurer/2013/11/21/5ea0d17a-508e-11e3-a7f0-b790929232e1_story.html
Alamo Real Estate Investors Association (REIA) San Antonio
WE HAVE A YAHOO GROUP FOR OUR MEMBERS!
Looking for a place to post deals, find deals, ask about contractor referrals, ask real estate investing advice, etc.? You now have a place to communicate with your fellow members online! Join the group now, it’s FREE and part of being a member!
http://groups.yahoo.com/group/AlamoREIA
Wealth Creation – “Phantom Income”
Good luck – Editor - Peter Michael
Visit us at: - http://alamoreia.org/
Is it a job or is it wealth creation?
It may be time to consider employing someone to
help with your business. The basic rule is every employee should generate about $15,000 or more annual income for the owner. Would someone doing the books and marketing mailings create more time to find transaction? Time to think on these things over the Christmas season.
Topic – Why Own Property
Why own property as against some other asset?
Generally, property is easy to manage and it can be done remotely without having to spend enormous amounts of time managing it.
Cash flow is the Holy Grail in and investment career and I will talk a little bit about buying repairing and flipping houses in a later Newsletter. At this time of the year, when we are reviewing what we're going to do, cash flow is where we should be looking. Flipping of houses, after they have been repaired, is hugely profitable and analyzing what is needed in terms of annual income is a relatively simple mathematically. The same can be said for wholesale. Here's the issue, after a property has been bought repaired and sold a new one has to be found and this is an ongoing marketing activity.
Annuity incomes generally require only one sale to generate income over a period of time. The marketing is therefore, quite different and is the subject of another article.
1. In most markets property values tend to increase in time. Factors to be considered are household incomes, the economy growth and the desirability of location when initially purchasing a property. These factors will certainly influence where the value is going in the next few years. Which brings us to the next point.
2. Cash flow is created and what to do with the money? The first and obvious is money to live on. The next may be a certain amount to upgrade an existing property or invest in a new one. And of course the most important, money should be set aside for emergencies.
3. Added value always happens as one pays down the loan, building equity. This is analogous to a savings account. In force savings account, wherein the prevailing interest rate on the loan is effectively the growth of the equity. Often this is greater than one would expect from any other traditional investment and another advantage is that the investment is backed by a tangible asset.
4. Leading on from the point above, as one develops more equity it is possible to use some as security to acquire other loans to buy yet more assets. Do not believe for a moment that this equity buildup is a form of “locked” equity. The buzzword, “a virtuous cycle”
This Newsletter is produced by the Alamo Real Estate Investors Association The Association does not purport to offer legal advice and you are encouraged to consult with an attorney about legal matters related to
property transactions.
5. When eventually sold, the property will generate a profit. This is a tax event. So before selling it is imperative to sit with tax experts and see whether a 1031 exchange is possible. A 1031 exchange will delay the onset of tax on profits.
6. And this brings in the concept of a Roth IRA. Here is an example. Your Roth IRA purchases option to purchase the property for a hundred dollars. The option is then sold at a profit of $2000. This money is then transferred back into the Roth IRA and no taxes paid. When one hits a certain age this money can be drawn out tax-free.
Talk to any one of the seasoned investors at the next meeting and ask them how they go about increasing their wealth. Love property, start investing right away.
Social Media
We all are bombarded with the need to ‘get on social media’. The questions posed, “Is it working for you, which sites and how?” Please let the editor know at email address [email protected]
Day’s rates 12/05/2013 from Randolph Brooks
Federal Credit Union.
Note the Advertised Rental Rate
Rates have increased over the last few months.
APR as low as
Mortgage (30 year fixed) 4.614%
Mortgage (15 year fixed) 3.337%
Rental (15 year only) 4.068%
Home Equity (4 year) 2.700%
We are led to believe that Federal Credit Unions
will grant up to $300,000 credit against rental properties.
There are rules and it is well worth doing some
investigation.
Wells Fargo will do 30 year notes on Rental
Property, but it is unknown what interest rate would be
applied and what the lending conditions are. Check with
them. Caveat, find a broker who knows rentals to avoid a
run around.
Quicken Loans may be good. Just to talk to them,
they want our Social Security number and need to check
our FICO score denting our credit for the enquiry. Be
wary. Do not allow a credit inquiry unless absolutely sure
you want to make use of the Offeror’s credit line. Dented
FICO scores have harmed many investors over the years.
Points to Note: - 1. If you need money quickly for a
rehab or any other short-term property investment, look
at the Home Equity interest rate.
2. The interest rates look very much as if they are
on the way up and this may affect the number of
properties coming to market as more and more people are
priced out to impart their personal debt to equity ratio.
Centers of Excellence
It is the intention of the executive to once more activate
the Centers of Excellence. The Centers are an informal
group of like-minded individuals who will meet every now
and again. It may occur that the group may schedule a
time to listen to a webinar and then discuss their take on
the subject matter.
These centers will tend to have specific areas of interest
such as, Landlording, rehabbing, apartment acquisition
and subject to investing.
Meetings are generally quite informal and held either at a
restaurant or at somebody’s home.
If you need more information, please contact Harold
Johnson at the next meeting.
Four ways Alamo Real Estate Investors Association pays for itself
1. Home Depot 2% rebate. Shop at the Home Depot? Get a minimum of $50 a year for your Home Depot purchases
with your Alamo membership. You don't have to apply for a credit card either! Just register for the card you already
use and Home Depot will send you a check twice a year.
This Newsletter is produced by the Alamo Real Estate Investors Association The Association does not purport to offer legal advice and you are encouraged to consult with an attorney about legal matters related to
property transactions.
2. Free shopping savings. Save as much as 30% off paint and paint sundries at Sherman Williams, 20% off your
Rentals.com listings, 20% off your Constant Contact membership and up to $100 off a year with Roto Rooter. There's
always a discount available to you at OfficeMax.
3. The National REIA business builder provides.... All the tools you need to run and market your real estate business
including website, hosting, property management automation, lead generation, foreclosure tracking, squeeze pages,
all deeply discounted for membership... All of which is needed and a requirement to start your real estate business.
This is a package that is now included as part of your membership.
Joining Alamo REIA is a no-brainer
Support our vendor members.
ISB Capital, LLC. – Private Money
Lydia Herrera
141 Danube Suite 102
San Antonio , TX 78213
210-447-9129
www.isbcapital.com
R.E. Capital, LLC – Hard Money Loans Mitch Stephen 11207 Perrin Beital, Suite 303 San Antonio, TX 78217 210 669 4020 [email protected] [email protected] www.Loans2Go.net.
Longhorn III Investments – Hard Money Loans
13750 San Pedro Ave, Suite 810
San Antonio, TX 78232
T: 877.420.7346 - : - M: 713.409.6386
Contact: Scott Fleming & Chris Jameson
www.longhorninvestments.com
SWBC Mortgage
Call: Shannon Collier
NMLS # 232124 Call: -210 725 8470
Mortgage & Private Money
Texas Mortgage Capital
13620 NW Military Hwy Ste 200
San Antonio, TX 78231-1875
Tel: 210-493-
5300:www.txmortgage.com
Safe Mortgage Services 37535 IH 10 West Boerne, TX 78006 [email protected] www.safemortgagesservices.com Call: - Tony Palumbo 210 274 1763
Your ad here next month
Trinity Foundation Repair Call: - Alex Dela Torre – 14131 Bella Dr Cypress, TX 77429 210 251 5018
All Foundation LLC Call :- Raul Ortiz -141 Danube Ste 101 San Antonio, TX 78213 210 377 2244 [email protected]
ONEprop Property Management
Bob Melcher – Branch Manager
Ph (210) 201-5182:FAX (866) 682-2038
www.ONEpropSA.com
Tenant Screening Services 201 Marple Ave, Clifton Heights, PA 19018 Ph: 855-244-2400 Fax: 855-244-2401 [email protected] www.tenantreports.com
NetWorth Realty – Prop. Wholesaler 6965 Blanco Rd, San Antonio TX 78216 www.networthrealtyusa.com [email protected] Call: - Jeremy Coburn 210 593 7040
Pleasant Renovation Robert Gonzales 11092 Ranger Oak San Antonio, TX 78233 [email protected] 210 885 8531
Cool Heat – Heating and Cooling Call: - Charles Henderson 210 722 9484
HomeVestors -We buy Ugly Houses.
Tim Herriage 1795 Northwest Highway Garland, TX 75041 Off: 972 755 1880 – Fax 975 775 1902 www.timherriage.com
This Newsletter is produced by the Alamo Real Estate Investors Association The Association does not purport to offer legal advice and you are encouraged to consult with an attorney about legal matters related to
property transactions.
Cygnet Resources – Investor mentoring and rehab coaching. 141 Danube Ste 207, San Antonio, TX 78213 [email protected] Call: - James McCullough 210 385 5671
Victor Maas – Real Estate Lawyer and Investor Call: 210 468 1831
Angela Marrero, Escrow Officer Providence Title, 700 E. Sonterra Blvd., Suite 1215 San Antonio, TX 78258 Off: 210-495-0396, Fax: 210-495-8018 [email protected] www.protitletx.com
United Credit Education Services
Credit Repair • 100 % Money Back
Guarantee • Call or Email: Charles
Common • (210) 897-7247
www.myfes.net/CCommon
www.united-credit.org
BRC Remodeling – Vernon Bryant 210 218 4780 4216 Centergate San Antonio, TX 78217 [email protected] www.brc-remodeling.com
Need to advertise our business?
Members are entitled to a free two line
classified ad in our future issues of our
Newsletter – cutoff date for all
submissions – 15th of each month –
publishing date 20th of the month.
As a member we are entitled to
discounts and/or cash rewards at Home
Depot, Office Max and Sherwin Williams.
Do not forget to register. This is our association working for us.
Recommended Reading
A classic - The Millionaire Next Door by Thomas J Stanley PH.D. and William D Danko PH.D. Talks about some very surmising
facts and why often wealth is not flashed about. Motto from this book, “Never be seen to be wealthy”
Own a property or better still properties, even if you have them under management here, is a book for you. Landlording on
Autopilot by Mike Butler– A simple and easy system for higher profits and few headaches,
One or two line classified ad section.
Pablo Uresti, Civil, Real Estate and Criminal Law, 2302 N. Zarzamora,
SATX 78201. Phone 210/736-6800.
Peter is looking to buy financially up-side down houses; he will pay a finder’s fee.
Call 210 523 9990 right now
This Newsletter is produced by the Alamo Real Estate Investors Association The Association does not purport to offer legal advice and you are encouraged to consult with an attorney about legal matters related to
property transactions.
The Magic of Christmas never ends
and its greatest of gifts
are family and friends.
Merry Christmas and Happy New Year!
The Editor - Alamo REIA,
P O Box 437
Stamp
Helotes, TX 78023
To:
