Think-Realty-Magazine-May-2018

Think-Realty-Magazine-May-2018

3 THINGS THINGS TO KNOW BEFORE YOU BUILD-TO-RENT

3 TIPS FOR WINNING IN HOT MARKETS

RENOVATION ROCKSTARS

7 INDUSTRY LEADERS EXPLAIN STRATEGY ONE-ON-ONE SPECIAL SUPPLEMENT HISTORIC HOME YIELDS HIDDEN TREASURE A FIRST DEAL FENDS OFF BURGLARY, FLOODING & MORE

INVESTABILITY SOLUTIONS' DENNIS CISTERNA IS REDEFINING THE SINGLE-FAMILY RENTAL SECTOR PAGE 20 Perfect Balance

5 LANDSCAPING DECISIONS TO ADD VALUE NUTS & BOLTS

NOMINATIONS OPEN

$5.95U.S. ::$6.95CAN MAY2018

Partner Up with a Leader Kinloch Partners, LLC Leading the Way to Better Homes

NASHVILLE ATLANTA GREENVILLE/SPARTANBURG

RALEIGH

“Built-to-rent new homes on the rise.” “New homes still command a premium with renters.”

- Realtor.org

- New York Times

Bruce McNeilage and Kinloch Partners have been featured in the Wall Street Journal, New York Times, Bloomberg, Atlanta Journal-Constitution, Atlanta Business Journal , and other publications for work within the single family housing industry, quickly becoming the leader in brand new rental houses in the Southeast.

Kinloch Partners, LLC is a leader within both the Fix & Flip, and Build-to-Rent single family housing markets, averaging a 97.5% occupancy rate for homes in Atlanta and Nashville. We are engaged with private equity funds, hedge funds, & real estate investment trusts (REITs) with an interest in buying brand new homes. Discover the opportunities of partnering with Kinloch Partners and Kinloch Homes. Contact us today! Visit KinlochPartners.net.

Leading for a reason. Kinloch homes come with:

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Granite Countertops

Stainless Steel Appliances

Wood or LVT Flooring

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Fireplaces

2 Car Garages

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Follow the Leader

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TABLE OF CONTENTS

INSIDE THIS ISSUE

THINK REALTY 8  News & Events 10  Credit Bureaus Decide to Remove Tax Liens from Credit Reporting

SPECIAL FEATURE 62  Building Community in Real Estate

Real estate, community, and tangible and intangible returns. by Carole VanSickle Ellis

The move could make a risky borrower or tenant look like a better bet. Reporting & commentary courtesy of ApplyConnect DESIGN POINT 12  Renovation Rockstar: New Orleans Edition

INDUSTRYVOICES 88  How to Effectively Leverage Diversity in Your Real Estate Business

Make the most of your innovators, trailblazers, and industry disrupters. by Rosalind Booker

A top-to-bottom makeover in The Big Easy. Featured investors: Braden Smith and Chris Leniek

16 Renovation Rockstar: First-Time Townhouse Success  Two new investors find big returns in a burglarized, flooded townhome. Featured investor: SouthHill Homes LLC 2018 TRENDS 42  The Future is Now for Artificial Intelligence in Real Estate Controlling the evolution of A.I. in your investing business. by Linda Liberatore 44  Why We Will Live with Labor Shortages in 2018 & Beyond Housing’s inventory problem is three- pronged and likely permanent. by Bruce McNeilage

90  Discovery of a Parasite in Life and Business Unidentified drains on your resources could be stealing your success. by Gary Harper COACHES CORNER 102  Introducing Kevin Ortner Mission: real estate-based financial security for all 105  Investor Insight from Eddie Wilson Why we strive to influence the real estate conversation. by Eddie Wilson

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COVER FEATURE

Investability Solutions' DENNIS CISTERNA is redefining the single-family rental sector.

PERFECT BALANCE

106  Panel in Print: The Rewards of Wealth Building

46  An Effective, Often-Overlooked Strategy for “Recession-Proof” Investing Even when markets are up, protect your portfolio with resilient investments. by Andrew Lanoie 50  4 Noteworthy Changes in Mortgage Finance Recent trends in the private note sector represent opportunity for investors. by Bill Griesmer

by Carole VanSickle Ellis :: photos by Christina Kiffney

Think Realty coaches discuss the many facets of wealth creation in real estate.

108  Investor Insight from Abhi Golhar Think Realty coach and radio host talks practice, perfection, and performance. by Abhi Golhar

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58

84

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MARKETING

NUTS & BOLTS

BIG PICTURE

MARKET BREAKDOWN

56  Doctors Could be the Key to Your Next Commercial Investment Medical spas’ growing popularity is a trend worth watching. by Pamela J. Goodwin

INVESTOR REVIEW 67  Experts Edition Top industry leaders expose insights, strategies & opportunity.

CREATING YOUR CONTENT MARKETING PLAN A multi-platform plan creates leverage for your business.

LANDSCAPINGTRENDSTO INCREASERESALEVALUE Leafy, green decisions canmake the difference when selling for top dollar.

INVESTING STRATEGIES IN A WIDENING MARKET 3 steps for making the right choices for your capital.

REGIONAL SPOTLIGHT: NEW ORLEANS There’s magic in The Big Easy, if you know where to look.

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FROM THE EDI TOR- IN-CHI EF

PUBLISHER R. Michael Wrenn

PRESIDENT, AFFINITY WORLDWIDE Eddie Wilson | [email protected]

Trend Tracking: Eyes on Evolution in Real Estate

EDITOR-IN-CHIEF Carole VanSickle Ellis [email protected]

VICE PRESIDENT OF MEDIA SALES Rodney Halford [email protected] 816-398-4111 x86122 NATIONAL SALES MANAGER Teresa Stanton [email protected] 816-398-4111 x86224

our industry, the responsibility for self-education lies more heavily on the investor than ever. To meet this need, in our May 2018 Developing Trends issue, we’ve brought you: •  Diverse viewpoints from across the in- dustry on the best sectors and markets in which to invest •  Insight customized for individual investors from one of the traditionally “closed” sectors in the industry, institutional investing •  Late-breaking analysis of 2018 trends as they have emerged, both with and against expectations and professional predictions, over the first four months of the year At Think Realty, we consider it our responsi- bility as real estate investors to create and sustain an investing community that is self-regulating, self-educating, and constantly evolving to better serve its own needs and those of the broader housing community. To that end, we bring you the latest in practice, strategy, and purpose in real estate. Our commitment to you, in this and every issue, is to continue to “think realty” with your real estate investing success in mind at all times. •

R

eal estate investors today exist at a critical junction of

extreme automation, profoundly powerful and diverse economic forces, mass communication at near-instantaneous speeds, and completely unprecedented societal and cultural norms and changes.

CONTENT STRATEGY CariAnn Steward

DESIGN CONSULTANTS Rivet | www.WeAreRivet.com

DESIGNER Emily Bowers

Here we sit, more complicated as a society and as an industry than ever before in history, placing our confidence in a foundation com- prised of one of the most solid, unchanging, scarce resources in the world: physical real estate. Thanks to this unique set of circumstances, the real estate investing space is in a state of evolution, even revolution, never previously seen in history. •  Never before have there been as many ef- fective, profitable strategies available to real estate investors. •  Never before has the financial barrier to entry into this sector been as low across the board. •  Never before have we, as investors, had such comprehensive access to information, edu- cation, and strategic development. With such evolution playing out daily in

CONTRIBUTING WRITERS Rosalind Booker, Becky Bower,

Christy Murdock Edgar, Abhi Golhar, Pamela J. Goodwin, William Griesmer, Gary Harper, Jenna Heneghan, Andrew Lanoie,

Linda Liberatore, Bruce McNeilage, Julie Ziglar Norman, Aaron Norris,

Kristina Phelan, CariAnn StewardJames Wachob, Kristin Weekley, Eddie Wilson, and Ingo Winzer.

WHAT'S NEW AT THINKREALTY.COM

COVER PHOTOGRAPHY Christina Kiffney

FOR ARTICLE REPRINTS :: Contact Jeremy Ellis at Reprint Pros, 949-702-5390. www.reprintpros.com. SUBSCRIPTIONS :: The annual subscription for Think Realty Magazine is $28.95 in the U.S. Order online at www.ThinkRealty.com or call 816-398-4085. Provide your full name, address and telephone number. DISCLAIMER :: Think Realty Magazine , its owners, contractors, distributors and their respective representatives do not provide tax, accounting, investment or legal advice and make no guarantee as to the effectiveness or success of any investment or tax strategies discussed herein. Please consult your own independent adviser as to any questions you have or decision you are contemplating. ABOUT THIS MAGAZINE :: ThinkRealtyMagazine isapublicationof AffinityRealEstateMediaLLC.Reproductionoruseofanyeditorial orgraphic,withoutpermission, isprohibited.Wearenotresponsible for thecontentofanypaidadvertisements.Forreprintrights; toob- tainadetailedstatementofourprivacypolicy;and forallsingle-copy requests,addresschangesandothersubscription inquiries:

Free E-Books Just a Click Away!

Increasing personal wealth involves a dedication to continuing education. Simply put, it’s a vital part of reaching a lasting level of prosperity in the REI business. Think Realty is on a mission to deliver investors—like you—a vast wealth of knowledge, always at their fingertips. That’s why we’ve made numerous educational E-books available to you absolutely free when you invest in a Think Realty Membership at ThinkRealty.com!

Never stop learning, never stop earning. Sign up at ThinkRealty.com and discover our library of E-books in the Downloadables section.

Think Realty 7509 Tiffany Springs Parkway, Suite 200 Kansas City, Missouri 64153 816-398-4130 ThinkRealty.com Copyright ©2018 Think Realty

CAROLE J. VANSICKLE ELLIS, EDITOR-IN-CHIEF

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THINK REALTY

NEWS & EVENTS

NOMINATIONS NOW OPEN!

The 2018 Think Realty Honors nominations are open, and the submissions are pouring in. Don’t miss the opportunity to recognize the best in the industry, no matter how big or small the real estate business. Our honors recipients are nominated by their peers (that's you!) and evaluated by an independent panel of former winners and industry leaders. Finalists and winners receive recognition in Think Realty Magazine , on the Think Realty website, and at the Think Realty Honors banquet in Atlanta, Georgia, in the fall of this year.

2017 winner, Tammy Phelps with Affinity Worldwide CEO Eddie Wilson

Take 30 seconds to nominate deserving real estate investors and industry professionals at ThinkRealtyHonors.com.

Crowds "Think Wealth" at April Conference & Expo AFTER SUCCESSFUL BALTIMORE EVENT, THINK REALTY MEMBERS "THINK RESOURCES" IN JULY.

Don't miss future events in your area. Learn more at ThinkRealty.com/TR-Events

T

hink Realty members spent an incredible weekend in Baltimore, Maryland, working closely with indus- try leaders to really focus on the theme of the event, Think Wealth . Attendees at the Think Realty Conference & Expo Baltimore on April 14 and 15, 2018, learned about every as- pect of wealth creation, from doing that first deal to building a lasting legacy for their family and heirs. Think Realty’s next conference and expo will take place in Irvine, California, on July 14 and 15, 2018. The theme of the event, Think Resources , is ideal for the physical location, which offers exciting access to industry leaders developing the best tools and technology for real estate investors. Kathy Fettke, co-founder of Real Wealth Network, will emcee the event. Bruce Norris, president of The Norris Group and famed author of “The California Comeback” in 1997 and “The California Crash” in 2006, will take main stage during lunch on Saturday. Norris is renowned for his ability to fore- cast long-term real estate market trends and timing, so his presence at this event is an unusual and significant oppor- tunity for attendees to hear directly from one of the most far-sighted analysts and investors in the industry. Become a Think Realty member and qualify for exclusive trainings, supplier discounts, and other exciting opportunities by visiting ThinkRealty.com/Join.

IRVINE

July 14-15, 2018 | The Marriott Irvine Spectrum THINK RESOURCES : Tech & Innovation

ATLANTA

September 22-23, 2018 | The Westin Buckhead Atlanta THINK PURPOSE : Investing with Impact

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THINKREALTY MEMBER BENEFITS

APPLY CONNECT

Alert: Credit Bureaus Decide to Remove Tax Liens from Credit Reporting THE MOVE COULD MAKE A RISKY BORROWER OR TENANT LOOK LIKE A BETTER BET.

Reporting & commentary courtesy of Think Realty supplier ApplyConnect

hen Transunion, Equifax, and Experian PLC sent out information on credit scores in April, some risky credit applicants may have appeared more creditworthy than they really are. Thanks to a decision to remove tax liens from credit reports, potentially risky borrowers will have a better chance at getting approved for loans and other credit-based requests, including tenant applications. The move is intended to prevent a single negative event (failure to pay certain taxes) from preventing borrowers from accessing much-needed credit, and stems from ongoing legal struggles and class-action lawsuits between consumers and the three credit scoring firms. While real estate investors (other than private and hard-mon- ey lenders, of course) may not be particularly concerned about whether individuals delinquent on their taxes can borrow W

Sabrina Bower, president of consumer-initiated tenant screening provider and court >Page 1 Page 2-3 Page 4-5 Page 6-7 Page 8-9 Page 10-11 Page 12-13 Page 14-15 Page 16-17 Page 18-19 Page 20-21 Page 22-23 Page 24-25 Page 26-27 Page 28-29 Page 30-31 Page 32-33 Page 34-35 Page 36-37 Page 38-39 Page 40-41 Page 42-43 Page 44-45 Page 46-47 Page 48-49 Page 50-51 Page 52-53 Page 54-55 Page 56-57 Page 58-59 Page 60-61 Page 62-63 Page 64-65 Page 66-67 Page 68-69 Page 70-71 Page 72-73 Page 74-75 Page 76-77 Page 78-79 Page 80-81 Page 82-83 Page 84-85 Page 86-87 Page 88-89 Page 90-91 Page 92-93 Page 94-95 Page 96-97 Page 98-99 Page 100-101 Page 102-103 Page 104-105 Page 106-107 Page 108-109 Page 110-111 Page 112-113 Page 114-115 Page 116

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