Think-Realty-Magazine-October-2017

Think-Realty-Magazine-October-2017

WAYS TO SHINE IN NEW MARKETS

SIMPLE STEPS TO GETTING THE BEST CONTRACTORS 2

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REAL ESTATE, TECHNOLOGY, AND MORE INVESTING CAPITAL ACROSS THE COUNTRY Leveling the Playing Field

YOUR PERSONAL MARKETING TEAM • EMAIL TACTICS • PODCASTING • TRADITIONAL LEAD GENERATION DESIGN POINT STAGING INVESTMENT PROPERTIES TO MAXIMIZE ROI

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NUTS & BOLTS DEVASTATING MISTAKES YOU’RE MAKING WITH YOUR REAL ESTATE IRA

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TABLE OF CONTENTS

INSIDE THIS ISSUE

THINKING REALTY 8 Where We’re Thinking Realty in 2017 Exclusive coverage of Think Realty events around the country. 26 Coaches Corner

62 Showing Up at the Table Flipper and wholesaler Shannon White never writes off the impossible. with Shannon White REAL ESTATE & RETIREMENT 60 The Real Estate Leverage Mistake That Can Implode Your IRA Lenders don’t want you to know their nasty habit of making prohibited loans to your IRA. by Bryan Ellis MARKETING 44 3 Keys for Making a Splash in a New Market Don’t let the learning curve in a new market slow 48 5 Keys to Effective Social Media Marketing Domination Truly understanding social media is the first step. by Abhi Golhar NUTS & BOLTS 91 5 Insurance Takeaways from Oakland’s Ghost Ship Inferno What you should learn from Oakland’s tragic warehouse fire. by BreAnn Stephenson 101 2 Extremely Effective Ways to Find and Vet Contractors Build a contracting “bench” you can rely on to work fast and maximize results. by Craig Fuhr you down. by John Tesh

The latest insights from and introductions to Think Realty’s expert coaching team.

THE BIG PICTURE 83 Entrepreneurialism: A Smart Pathway to Success Think Realty’s NASCAR driver reflects on dreaming big. by Jennifer Jo Cobb 86 Net Zero in Costa Rica The RISE development raises the bar on sustainable living and environmentally responsible investing. by Donna Behrens 88 Trendspotting vs. Falling for the Hype Know the signs for a neighborhood truly on the rise vs. the pitfall of a false alarm. by Blake Johnson 90 Commercial Investors vs Zombie Malls Real estate investors win in uncomfortable scenarios. by Linda Liberatore UP CLOSE & PERSONAL 50 The Combat Guide to Real Estate Air Force pilot reveals his flight plan for real estate investing success. with Seth Wilson 52 Case Study: Why Flippers Make the Move to Self-Storage Think Realty’s one-on-one interview with Scott Meyers about expanding into self storage. with Self Storage Expert Scott Meyers

ON THE COVER

PASSIONATE ABOUT THE MISSION: PeerStreet co- founders Brett Crosby and Brew Johnson credit their team with the company’s success in leveling the playing field for real estate investors and private lenders.

LEVELINGTHE PLAYING FIELD: TECHNOLOGY, REAL ESTATE, AND MORE CAPITAL ACROSS THE COUNTRY

by Carole VanSickle Ellis :: photos by Jon Endow & Brian Channell

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REGIONAL SPOTLIGHT

FINAL THOUGHTS

MARKET UPDATE

DESIGN POINT

INVESTOR REVIEW

MEMPHIS, TENNESSEE The Blues City gives local investors all the love.

WHAT’S IN A NAME? Zig Ziglar’s daughter shares her philosophy on reputation

ATLANTA, GEORGIA The “Empire State of the South” is still building strong.

BEAUTIFULLY ENGAGED Public art and private property.

67 So Much More Than Meets the Eye Single-family residential providers reveal best practices and insider secrets.

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FROM THE EDI TOR- IN-CHI EF

PUBLISHER R. Michael Wrenn

The Biggest Deal

PRESIDENT, AFFINITY WORLDWIDE Eddie Wilson | [email protected]

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

VICE PRESIDENT OF MEDIA SALES Rodney Halford [email protected] 816-398-4111 x86122

questions she’d written on a napkin. The few minutes he took to help her create an action plan even though she had no money to buy his course changed first her life, then the lives of countless others now in her real estate coaching program. Another sat down at a table with his wife and

eal estate investors, much like fishermen, dedicate a lot of head space (not to mention conversation time)

CONTENT DIRECTOR CariAnn Steward [email protected]

to “The Big One.” Those big deals, the homeruns, so to speak, can dominate not just your networking discussions but, if you are not careful, your investing strategy and your entire business as well. It is crucial to your success in our industry to realize and accept that not every big deal will look big from the outset, and not every trans- action must be a homerun for it to be a big deal for you. In this issue, we talk a lot about big deals. We’ve brought in educators from the Think Realty coaching team who do the biggest of those big deals, multi- million-dollar commercial transactions, on a regular basis. They’re ready to teach you how to transition into that space if you’re so inclined. We’ve inter- viewed investors across the spectrum with hundreds and even thousands of deals, both big and small, un- der their belts. They’re sharing their best strategies, insider knowledge, and all the things that contribute to their big bottom lines. Read closely, however, and you will find that these big guns’ successes were built on things that did not necessarily seem big at first. One investor sat down at a table to be “sold” by an expert at a Saturday seminar, armed with a list of

ASSISTANT EDITOR Heather Elwing

DESIGN CONSULTANTS Rivet | www.WeAreRivet.com

decided a single, relatively small profit margin on their first deal was enough to take the leap and establish what is now an extremely lucrative real estate investing business. That business not only supports the investor’s family, but also betters the lives of employees, distressed homeowners, and multiple southeastern communities. Read closely. Every single investor, educator, expert, and novice featured in this issue has, at some point, taken a mere five or 10 extra minutes to review and adjust their investment strategies in a way that not only improves profits, but benefits their local communities and the broader real es- tate community as well. Sometimes, that five or 10 extra minutes has meant something small, like making an un- usual staging decision that led to fewer days on market. Other times, that extra consideration has reverberated throughout the industry, such as setting the standard for compassionate, community-oriented investing. That, my friends, is a big deal. It may be your big deal. And it’s truly a “real estate of mind.” •

GRAPHIC DESIGNER Emily Bowers

CONTRIBUTING WRITERS Donna Behrens, Jan Britt, Jennifer Jo Cobb, Craig Fuhr, Abhi Golhar, Bryan Ellis, John Hyre, Carmen Inman, Blake Johnson, Linda Liberatore, Bobby Montagne, Julie Ziglar Norman, Jim Paul, BreAnn Stephenson, John Tesh, Abby Tillman, Mike Ventry, Ingo Winzer and Shawn Woedl

INTRODUCING COMMERCIAL REI COURSES

INVESTOR REVIEW: Good Success, Net Worth Realty,

Norada Real Estate Investments, The PIP Group, Real Property Management, Renters Warehouse, Strategy Properties and Streamline Funding

COVER PHOTOGRAPHY Jon Endow

WHAT'S NEW AT THINKREALTY.COM

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:

Meet Think Realty Coach, Pamela J. Goodwin

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Think Realty 7509 Tiffany Springs Parkway, Suite 200 Kansas City, Missouri 64153 816-398-4130 ThinkRealty.com Copyright ©2017 Think Realty

CAROLE J. VANSICKLE ELLIS, EDITOR-IN-CHIEF

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NEWS BRIEFS

EVENT COVERAGE

estate of mind.” Also, don’t miss the net- working opportunity of a lifetime when you meet the 2017 Think Realty Honors awards finalists at a special awards luncheon. An elite panel of judges and industry influencers will present this year’s winners. Think Realty’s elite coaching team will also have several representatives at the conference. Sonia Booker, “The Wealth Builder,” Abhi Golhar, “The Connector,” and Eddie Wilson, “The Deal Maker” and also president of

THINK REALTY NATIONAL CONFERENCE & EXPO ATLANTA, GEORGIA | OCTOBER 14-15, 2017 THINK REALTY COMBINES THE LATEST TRAINING AND STRATEGIES IN REAL ESTATE WITH NETWORKING TO CREATE “PATHWAYS TO SMART INVESTING.” ing the appropriate investing strategies for their unique situation. Identifying “Pathways to Smart Investing” is one of Think Realty’s strengths. In one venue, meet Think Realty coaches trained to help investors at all levels pinpoint the best tactics to “level up” their businesses and dozens of experienced investors, speakers, and service providers all focused on helping you reach a “real E very investor can achieve real es- tate investing success by leverag- View Think Realty Magazine’s behind- the-scenes pre-conference coverage and interviews at thinkrealty.com. Learn more at thinkrealty.com/ events/treia-raleigh/. Sweet of Carolina Hard Money will also will also present at the event. “Our attendees are learning from what I like to call ‘normal people’ in real estate,” said Jurgens. “Some had credit problems, full-time jobs and families to support, a hard time making ends meet, and even family and friends that hoped they would fail. These speakers will show that you can be successful in real estate no matter your age, gender, race, color, religion, education level, savings in the bank, or location. This event will prove it to you.”

Think Realty parent com- pany Affinity Worldwide will be in attendance. All three coaches recently released new

courses available to Think Realty members at the investor level and will be ready to help attendees build wealth, manage time, and live a life of greater purpose through real estate investing. The event will also fea- ture a panel of local industry experts, a keynote detailing the five most common mistakes real estate investors make, and multiple training sessions with prac- tical, action-oriented information on topics relevant to landlords, flippers, wholesalers, passive investors, and in- dividuals using real estate to build their retirement portfolio. Don’t miss this chance to define and refine your pathway to smart invest- ing with the help of some of the most influential investors from all sectors of our industry.

Eddie Wilson networks and strategizes with attendees at a Think Realty event.

WhereWe’re Thinking Realty in 2017

speaker’s roster includes nationally-rec- ognized real estate expert and trainer Ron LeGrand (this issue’s Investor Spotlight on p. 62 features an Atlanta-ar- ea investor with a very interesting story about LeGrand’s role in her real estate investing), Brian and Lynette Wolff, also known as “The Wolff Couple” and “Men- tors to the Mentors,” Jay Connor, who is known for his creative methods for buying and selling properties at very low risk levels, and nationally-recognized seller-financing expert Larry Harbolt. Educators Sam Kaddah of Liquid Logics, Steve Down of Financially Fit, Merrill Chandler of CreditSense, and Wendy

TREIA CONFERENCE & EXPO, POWERED BY THINK REALTY RALEIGH, NORTH CAROLINA | AUGUST 27-28, 2017 INVESTORS THROUGHOUT NORTH CAROLINA’S TRIANGLE REGION JOIN FORCES THIS AUGUST.

he Triangle Real Estate Investors Association (TREIA) is hosting an exciting two-day event powered by Think T

Realty for new and experienced inves- tors. “We’ve brought together some of the top real estate experts in the world to

show attendees how to start and expand a profitable real estate business,” said Chuck Jurgens, TREIA president. The

Learn more and reserve your spot at thinkrealty.com/events/atlanta.

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DESIGN POINT

STAGING

Good staging decisions can save you time on market and improve your deal’s ROI.

COLOR PALETTE: A color palette is the color scheme that you use in the home. It can change from room to room or flow throughout the house. Most designers recommend color palettes that vary, but do not clash. STAGING: The act of improving a property’s appeal to buyers using art, accessories, lighting, greenery, carpet, furniture, and other home- décor items to create an attractive first impression of the home.

3 Strategies for Staging Investment Properties STAGING CAN MEAN THE DIFFERENCE BETWEEN A BIDDING WAR AND SLOW DEATH ON THE MARKET.

by Jan Britt

any real estate investors believe that staging is unnecessary for their properties. They could not be more wrong! Whether you are hoping to sell for top dollar or rent out a buy-and- hold property, a few economical staging investments will give your property that “special something” that attracts buyers or renters eager to pay top dollar for the privilege of living in your investment. Here are three things you will soon find you can’t afford not to do before showing a property: M NO. 1 BE SMART ABOUT YOURRUGS Area rugs show off hardwoods and help pull the color palette into the room while preventing echoing. Invest in a carpet remnant that has a high knap, not quite a shag, but close. Cut it to the need- ed size and hot-glue the edges to prevent unraveling. Inexpensive to make (about

$30), but a key addition to any room with hardwood floors. PRO TIP: If you have carpet, don’t put a rug down! It doesn’t matter how pretty and expensive that rug is, it looks like you are covering something up. Fur- thermore, doubling up makes the room look smaller. NO. 2 STAGE THE MASTER BEDROOM Even if you do not stage any other room, minimally stage the master bedroom with a nice bed and bedspread (solids, no florals, so you get a larger, cleaner-looking room and bed) and some nice-but-generic art on the walls. I hang all my art with monkey hooks, which do not mess up the wall and will hold up to 100 pounds. PRO TIP: If the master bedroom is not

on the same level with the rest of the bed- rooms, stage the house so it is clear that upstairs bedrooms are still easily acces- sible to parents. Parents may shy away if they think they won’t be near their babies. NO. 3 HANG SOME CURTAINS A lot of times when you walk into a house and there is minimal staging, you encounter a terrible echo. Absorb that echo with staging curtains made from

> Continued on :: PG 112

Jan Britt is an award-winning interior designer, redesign specialist, and staging specialist based in Atlanta, Georgia. She may be reached at

[email protected] or www.janbrittinteriors.com.

STEVE DOWN.COM

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DESIGN POINT

PUBLIC ART

GETTING STARTED WITH PUBLIC ART

raising property values in the process. “This property had a really bad reputa- tion before we bought it. We wanted to not just bring the building up to standard; we wanted to completely reposition it so that it would have an updated look that would appeal to Millennials,” Halm said. She and her husband, Peter Halm, have more than a decade of real estate investing experience in single- and multifamily properties and mobile home parks under their belts and specialize in using community-oriented processes to raise the value of their invest- ment properties. Once the Halms and their co-investors decided upon a mural as the outward-facing indicator of the building’s new interior, Halm got to work. “There is a huge wall on the side of the property that has great visibility. You can see it from the freeway and several major streets,” she said. “We really wanted to have locals involved in the project so that we did not just have a mural, but a com- munity event that would create interest and engagement.” Halm partnered with We Are This City, a local Albuquerque arts organization that specializes in com- munity art projects, and selected a local Native American muralist named Cloud Face to design the mural, which features a young girl holding a flower and a large hummingbird on a colorful background. The entire community came together to kick the project off, with Halm and her group providing fire extinguishers full of paint and paint-filled water balloons that the crowds used to create the colorful background for the mural. “We invited the local schools, the residents, everyone in the community engaged,” she said. “The wall is 60-by-40 feet, but we did not even have to use ladders to get the background done. Fire extinguishers have quite the range and we were able to keep all of our artists other than Cloud Face on the ground!” After the initial event, Cloud Face immediately got to work painting the finer features of the mural over its bright new background. Halm and her investors expect to see long-term payoffs from the project in

Think that your investment properties could benefit from a public art project? Here are a few things to consider before you start creating:

WHO WILL SEE THE PROJECT? Your project should be positioned in such a way as to attract as many eyes in your target market as possible. WHO WILL PARTICIPATE? Community art requires community participation! You will get the best results if you incorporate local arts organizations or other groups that will not only assist you in the artistic process, but will also publicize the event and help you select an appropriate design for your goals and the local area.

DO YOU HAVE THE RIGHT PERMISSIONS? You will likely need to work with the city govern- ment to get permission to paint, and in some cases you may need to check in with a homeowners’ association or chamber of commerce as well. You may need to submit de- signs in multiple locations for approval or follow a predetermined set of guide- lines for your design.

Locals painted the mural’s colorful background, then Native American muralist Cloud Face filled in the details.

Beautifully Engaged: Public Art and Private Property WHEN PUBLIC ART MEETS REAL ESTATE, COMMUNITY AND EQUITY GROW.

by Carole VanSickle Ellis | photos by Chris Rush and Max Baptiste

Community art requires community participation. Halm brought in a local organization to generate local buzz and involvement the day of the project.

hat do you do when you purchase an investment property with a nasty reputation in a great location? If you’re Monick Halm, managing partner of Vineyard Investment Partners, you give it a literal makeover and, just as in any other makeover, the “face” plays a huge role in the process. Last spring, Halm, an attorney and real estate developer in addition to being a self-described “real estate investor goddess” (she recently authored a book by the same name), took an Albuquerque multifamily investment property and gave it some permanent makeup in the form of a mural that brought the entire local com- munity together to beautify the building while showcasing interior upgrades and W

BENEFITS OF PUBLIC ART

area, the Apple Store, the movie theater, all sorts of shops, boutiques and restaurants. It was just that no one had touched the inside [of the property] since probably 1977 and the outside wasn’t much better. Now, we’ve made beautiful upgrades and the art event really highlighted that we have a new prod- uct and a new community.” •

the form of increased rental rates and pop- ularity of the living spaces, but they also en- joyed some immediate benefits. “We held an open house the day of the event and leased three apartments that day,” she said, adding that the event showcased how desirable the area around the building has become and that in the two months following, occupan- cy rose from 60 percent to 90 percent. The new tenants are, as Halm predicted, in the coveted Millennial demographic that values the advantages her building offers. “It is walking distance to the Uptown shopping

in • tan • gi • ble aesthetic beauty, community pride, education, inspiration considered “soft” benefits because they cannot be measured. tan • gi • ble Occupancy (Monique raised occupancy nearly 30 percent), publicity (news coverage is nearly always positive, free advertising), can be used to attract additional publicity and licensing opportunities, gratitude from “fans” of public art which leads to publicity etc. Note: this is all highly subject to your specific community and target market .

Carole VanSickle Ellis is the editor of Think Realty Magazine. She can be reached at [email protected].

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DESIGN POINT

RENOVATION ROCK STARS

offer fantastic ROI and are likely to attract more serious buyers (USA Today found that more than half of home buyers stated that they were willing to pay more for hardwood flooring on sight), but they are substantially more expensive than laminate flooring. “My main consideration for flooring in the kitchen is the price point of the home. If you’re dealing with a high- er-end home, you have to go with tile or hardwood for sure,” Tesh observed. How- ever, she added, “Mid- to lower-end homes can do well with a really great vinyl that looks just like tile at about one-third the price.” Similarly, kitchen countertop choice is of vital importance when it comes to rehabbing since investors must balance high-end looks like marble and granite with their bottom line. Tesh has a hard rule about when to replace countertops: “If I change out the cabinets, I always replace the countertop with granite and a tile backsplash. If the budget allows, I select a higher-grade granite for a ‘wow-factor’ when you imme- diately enter the kitchen [see images for examples].” Speaking of cabinets, Tesh looks to comparable sales in the area to make a final decision between replacing and refinishing, and she has some tips for updating old 1: Not every renovation requires wall removal, but many investors opt to do so thanks to the popular- ity of open floor plans. 2 & 3: Granite counters and tile backsplashes create a “Wow!” factor in any kitchen makeover.

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Renovation Rock Stars: Kitchen Edition THINK REALTY LAUNCHES AN EXCITING NEW OPPORTUNITY FOR READERS.

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by Think Realty :: photos by John Tesh

ver watched one of those “reality” real estate shows and thought to yourself, “I could do so much better, for so much less! And why are they hanging that hideous wallpaper in a rental prop- erty anyway?” If so, you’re not alone. In fact, at every Think Realty event, we meet hundreds of real estate investors doing incredible renovations and rehabs fully worthy of a television feature. While Think Realty Magazine does not have its own reality show just yet, we have managed to do something reality-television worthy: E

We’ve settled the great “kitchen vs. bathroom debate” once and for all…or at least until next quarter’s >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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