Think-Realty-Magazine-August-2020

Think-Realty-Magazine-August-2020

TM

Scale Safely with Private Capital FUNDAMENTALS

On Trend ROOFSTOCK CEO GARY BEASLEY BRINGS E-COMMERCE TO THE REAL ESTATE INDUSTRY

Industry Influencers Are Coming from the Future REALTYMATTERS Worth the Wait In Kansas City, Slow and Steady Wins the REI Race MARKETS & TRENDS

$5.95 U.S. :: $6.95 CAN AUGUST 2020

MAKE MONEY LIKE A BANK. EQU I TY&HELP ALLOWS YOU TO MAKE MONEY L I KE A BANK WHI LE HELP ING AMER I CAN FAMI L I ES IN THE PROCESS . WI LL YOUR CURRENT REAL ESTATE INVESTMENT F I RM GET YOU THE HI GHEST RETURN? By going the pass i ve investment route wi th Equi t y&He lp, you ' l l earn a hi gher return on your rea l estate investment . . . and wi thout a l l of the respons ibi l i t y that comes wi th be ing a l andlord. What sets us apar t f rom other rea l estate investment f i rms i s your return i s at an 8% to 12% Cap Rate based on your purchase of proper t y at 40% to 60% under ARV. Thi s a l lows you to be the bank (and make money l i ke one) whi l e pl ac ing a hard-work ing Amer i can fami l y in a home . Our reputat ion as a f i rm that g i ves back i sn ' t the onl y factor that sets us apar t f rom the others : Af ter a l l , E&H was l i sted as #128 in the Inc . 500 in 2019. Choose a company that g i ves back to the i r communi t y whi l e get t ing you the hi ghest return.

Choose Equi t y&He lp.

2 | think realty magazine :: august 2020

interested in your real estate investment getting you the highest return?

SCHEDULE A DISCOVERY CALL TODAY.

(844) 552-8828 equityandhelp.com [email protected]

thinkrealty . com | 3

CONTENTS

INSIDE THIS ISSUE

THINK REALTY 9  News & Events 11  Think Realty Supplier

Anderson Business Advisors

INVESTOR STORIES 15  Investor Voices ENGAGEMENT 24  Realty Matters: Influencers in Real Estate Emerging industry trends are coming from the future by Brian Wojcik Be savvy to scammers and find credible private lenders for your deals by Kat Hungerford 31 Talking Loudly: Listen to the Lenders Stay conservative but jump on opportunities by Nathan Trunfio 35 Sponsored Content: Investor Review 54 Tips on ADA Compliance for Your Website How property managers can avoid complaints and possible lawsuits by Lisa G. Noon, CAE RCE FUNDAMENTALS 28 Scale Safely with Private Money STRATEGY 56  What Is the Right Real Estate Investment for You? Part I in a new article series on how to find the right niche by W. J. Mencarow

16

COVER FEATURE

ON TREND

23

12

61  Institutional Funds

Can investors compete with multi-billion-dollar funds? by Ellis Hammond

INVESTOR STORIES

ENGAGEMENT

PRESIDENT’S CIRCLE

EASY ANSWERS

64  Funding Your First Investment Using your IRA to finance a real estate purchase by Michael Jordan

Featured Member: Robert Knight

Tips to protect yourself — and your investments

4 | think realty magazine :: august 2020

DESIGN POINT 66  Design Like a Pro

Pairing cabinets and counters is the secret to a stunning kitchen by Samantha Johnson

68  Design Guide: Mid-Century Modern Bath Featured Designer: Michele Van der Veen

MARKET & TRENDS 72  A Full Recovery? Ten mighty markets that are candidates to come out in the best shape by Ingo Winzer 74  Worth the Wait In Kansas City, slow and steady wins the race by Fred Heigold III 78  Midwest Market Garners Global Attention Kansas City is gaining wide-spread attention as a great place to invest by Nathan Brooks

81  Housing Still Outpaces Income How builders and investors can respond to this trend by Bruce McNeilage

85  Flipping Rentals

When transition becomes a timeless investing strategy by Michael Zuber

Roofstock CEO Gary Beasley brings e-commerce to the real estate industry by Joe Dyton

88  The Sandwich Effect

Major changes are predicted before 2021, regardless of “second wave” by Tom Olson

58

96

MINDSET 92  7 Steps to Financial Freedom

STRATEGY

MINDSET

Step Two: Dream, Visualize, and Commit by Gene Powers



THE FUTURE OF CO-LIVING

TWO TRENDS TO WATCH

94  Identifying a Great Rental Property Investment A back-to-basics approach for finding your next rental by Abhi Golhar

Will this effective solution to affordable housing survive long term?

When there is turbulence, there is opportunity for wins—and losses

thinkrealty . com | 5

PUBLISHER & CEO Eddie Wilson

EDITOR-IN-CHIEF Kelli White

SALES MANAGER Rodney Halford [email protected]

FULFILLMENT COORDINATOR Blair Pierce

DESIGNER David Allen Rodriguez

CONTRIBUTERS Nathan Brooks Clint Coons Joe Dyton Abhi Golhar

Ellis Hammond Fred Heigold III Samantha Johnson Michael Jordan Bruce McNeilage WJ Mencarow Tom Olson Gene Powers Peter Stuart Nathan Trunfio Michele Van der Veen

HEY! LET’S BE FRIENDS! GET SOCIAL. STAY CONNECTED.

Eddie Wilson Ingo Winzer Brian Wojcik Michael Zuber

Like, Follow & Share for the Latest Real Estate News, Trends and Insights from Think Realty

COVER PHOTOGRAPHY Sarah Beasley

Are you following Think Realty on social media? Things move pretty fast in real estate. Don’t miss out on the latest trends, tips, insights and news from your trusted resource for all things real estate investing! Follow. Like. Love. Share. Comment. You can do it all with Think Realty’s social media channels. Join the conversations in Think Realty social communities and connect with like-minded members who range from first-time to seasoned investors. Check out all of our social media channels and connect with us - and other investors - today!

Think Realty 12200 N. Ambassador Dr. Suite 301 (Office A) Kansas City, Missouri 64163 816-398-4130 ThinkRealty.com Copyright ©2020 Think Realty ABOUT THIS MAGAZINE :: Think Realty Magazine is a publication of Affinity Real Estate Media LLC. Reproduction or use of any editorial or graphic, without permission, is prohibited. We are not responsible for the content of any paid advertisements. For reprint rights; to ob - tain a detailed statement of our privacy policy; and for all single-copy requests, address changes and other subscription inquiries: SUBSCRIPTIONS :: The annual subscription for Think Realty Magazine is $36.00 in the U.S. Order online at www.ThinkRealty.com or call 816-398-4130. 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.

@WeThinkRealty

@WeThinkRealty

Think Realty

/ThinkRealty

6 | think realty magazine :: august 2020

FROM THE EDI TOR- IN-CHI EF

Timeless Trends

sellers together, has brought transparency and technology to

elcome to the August issue of Think Realty

W

Magazine! We always aim to bring you real estate investing news, education, ideas, and

real estate investing. Beasley isn’t following

trends; he’s setting them. Read his story on page 16. And, Think Realty CEO Eddie Wilson shares

insights that are anything but archaic. And this issue is not any different. We’ve devoted these pages to industry

his thoughts on two trends he’s seeing a lot of. But are these good trends to follow? Find out which opportunities might lead to investment wins (or losses) in his Mindset column on page 96. Speaking of trends, the Think Realty team is setting industry trends with our first hybrid event next month in Atlanta! We hope to see many of you there, and if you’d rather take in all the real estate education from the comfort of your home, you can do that too! Stay tuned for more details about what we’re doing to bring the best REI education to you! •

trends — to the timely and timeless real estate investing strategies and business practices that you might want to try, if you haven’t already. After all, “trendy” is not a four-letter word; when it comes to real estate investing, being trendy is about knowledge and awareness. And knowledge is power for your portfolio. Our cover person, Gary Beasley, knows a thing or two about trends in real estate and raising the roof. The co-founder and CEO of Roofstock, an online company that brings buyers and

Keep Going!

KELLI WHITE, EDITOR-IN-CHIEF

thinkrealty . com | 7

Calling all REI stars into the spotlight. Now through August 21, vote for the leaders and change- makers who represent the best the industry has to offer. We’ll announce the honorees on September 19 at the Think Realty Conference & Expo in Atlanta. They’ll also be featured in Think Realty Magazine and interviewed on our podcast. 2020 Think Realty Honors Categories: Single-Family Investing • Multifamily Investing • Real Estate Investing Services • Linda’s Legacy: Industry Impact Award

Vote today at thinkrealty.com/honors.

8 | think realty magazine :: august 2020

THINK REALTY

NEWS & EVENTS

SPEAKERS

or once in the real estate world, it’s not about location! Held twice per year — this year in Baltimore and At- lanta — Think Realty events are conference- and expo-style learning experiences designed for real estate investors of all levels. Knowledgeable speakers at the top of their fields and more than 40 vendors share their expertise and help investors with the education, services, and products neces - sary to help build their real estate businesses. This year, we are holding on-site events as usual PLUS offering a virtual option to accommodate COVID-19 restrictions and for those not wishing to travel. Whether you stay where you are and learn virtually or experience the event in-person, you will gain knowledge to help you kick off your REI journey or to scale your already-growing business. There’s something for every real estate investor at Think Realty events! • F

Doug Duncan Fannie Mae

Brent Kesler The Money Multiplier

To learn more about upcoming Think Realty events and to buy tickets, visit ThinkRealty.com/TR-Events.

thinkrealty . com | 9

COMPREHENSIVE BUSINESS PLANNING • TAX STRATEGIES • ASSET PROTECTION • BUSINESS PLANNING

OUR STRATEGIES ARE AS UNIQUE AS YOUR INVESTING

We offer investors a one-stop-shop for tax planning, asset protection, and business planning, but never take a one-size-fits-all approach. We aren’t going to fit you into a box. Your investing situation and goals are unique, so your business plan should be, too. We look at each client’s situation individually and formulate the best plan to fit their needs. Implementing the correct structure for your specific situation is essential to protecting your assets and minimizing your tax burden. Whether you invest on the side or as your full-time job, you must treat your investing as a business to increase your financing options and take full advantage of the tax and asset protection strategies available to you.

BUY-&-HOLD

INVESTING WITH A QRP

FIX-&-FLIP

WHOLESALE

10 | think realty magazine :: august 2020

THINKREALTY SUPPLIERS

MEMBER PERKS!

More Savings for Think RealtyMembers

FEATURED SUPPLIER: ANDERSON BUSINESS ADVISORS

T he Think Realty Supplier Program is bringing benefits and discounts to its

“I AM CONSTANTLY LEARNING ABOUT NEWAND CREATIVE STRATEGIES FROMMY CLIENTS SURROUNDING HOWTHEY FIND SUCCESSWITH THEIR INVESTING. PEOPLE ARE SUPER CREATIVE, AND I GET TO BE PART OF THE PROCESS IN PLANNING HOWTO MINIMIZE THEIR TAXES AND PROTECT THEIR ASSETS.”

members through partnerships with companies like Anderson Business Advisors. Maybe you’ve seen this company’s managing partner, Clint Coons, speak at Think Realty events, or maybe you saw him on our April cover, or maybe you’ve read his monthly Q&A (on page 23). Coons is a Think Realty Resident Expert for a reason! He knows his niche and loves sharing his expertise with you—real estate investors— helping you to protect what you are working for.

CLINT COONS ANDERSON BUSINESS ADVISORS

Think Realty members receive a free strategy session from Anderson Business Advisors (a $750 value)! Look for more suppliers featured throughout this issue of Think Realty Magazine and in every month to come! If you haven’t yet reaped the full benefits of being a Think Realty member, visit thinkrealty.com/supplier-discounts today and see how much money you can save!

thinkrealty . com | 11

INVESTOR STORIES

PRESIDENTS' CIRCLE

Presidents’ Circle

Featured Member: Robert Knight

residents’ Circle member, missionary, real estate investor, and business owner Robert Knight has

One of the unique things about Cape Coral is that it has 119 square miles and 50 percent of the city is still unbuilt with an almost endless supply of affordable lots. In 2016, with this idea in mind, we started White Stone Develop- ments to begin building single-family homes and duplex- es for investors and first- time home buyers. Our long-term vision is to help investors take advantage of this amazing location and hold rental properties that have strong cashflow and potential for capital apprecia- tion. Our preferred niche is new construction rentals and build to rent. We believe there is huge potential to create differentiation for investors. Below are a few reasons why: • Location. Location. Location. Great locations perform better! • Land prices are still historically low. • Rental revenue is higher because it is quality new construction. • Scalability/deal flow is endless for the foreseeable future. • There are fewer expense surprises than in rehab deals. I am excited by the multitude of opportunities all around me in this paradise called Cape Coral. Not many places can you get gorgeous waterfront canals for as low as $10,000! Investors can own rentals in an amazing area with solid cashflow, builder warranties, historically low interest rates and strong potential for capital apprecia- tion. What concerns me is helping as many investors as possible get started before interest rates get higher. What really fires me up is helping people move toward financial freedom with new construction rentals. Each new property goes to work for investors to give their fami - ly more freedom and options that make life amazing.”

P

been purchasing and rehabbing buy-and-hold single-fam- ily rentals since 2009. In 2016 he pivoted to new construc- tion in the sunshine state. He shared his real estate story and a few other fun facts with Think Realty, including business tips for beginners. Read on for Rob’s story: “In 2015 my wife and I returned from 20 years overseas as missionaries and purchased a HomeVestors franchise. We rehabbed or wholesaled 17 properties our first year but noticed our marketing spend and the competition for distressed properties in our area was increasing. I chose to move our family to Cape Coral, Fla., because I was so impressed with the vision of the city as a pre-plotted, master-planned community with over 400 miles of gulf access and freshwater canals.

Aerial View of Cape Coral, Fl

12 | think realty magazine :: august 2020

TR What advice do you have for beginners in the real estate industry? RK 1. Read books: Find the authors that have been successful in real estate and model the author’s philosophy and way of thinking. Change your thinking and you will change your life. 2. Masterminds and real estate investment groups: Start building friendships with people already succeeding in real estate. 3. Deal analysis: Start by learning how to analyze deals. The best way to get good at recognizing

3 FAVORITE BOOKS

great deals is to look at a ton of deals including the really bad ones. I use www.rehabvaluator.com both for rehab deals and for new construction deals.

Cashflow Quadrant Robert Kiyosaki

TR Do you have a guilty pleasure?

RK That would have to be a glass of chardonnay white wine, sashimi salmon, accompanied with some Pine Island clams and Gulf oysters. TR How have you evolved as an investor? RK I started off just chasing high cap rates and even held a few Section 8 rentals, but I have realized over the years that there are many other key factors that are not always apparent on the surface of the numbers. I prefer owning assets that are A and B class assets and in nice locations and don’t mind a slightly lower cap rate on the surface if I am able to own in great locations with strong tenants that take care of my property. TR In response to the COVID-19 pandemic, how have you adapted in your business practices and in your investing choices? RK Initially buyers were all hitting the pause button on new construction but as the economy opened back up buyers/investors have snapped right back with enthusi- asm pointing to a V-shaped curve recovery. I am still waiting to see a flood of distressed property hitting the market. The distressed deals I am current-

Zig Ziglar’s Leadership and Success Series Zig Ziglar

Awaken the Giant Within Tony Robbins

ly seeing are mostly in C-class neighborhoods with cap rates below 10 percent. We are keeping our eyes open for deals but optimistic about our Cape Coral location and the affordability of new construction homes that investors can build for rent. For example, we can build new construction duplexes in nice, working-class neighborhoods at an eight percent cap rate. TR What makes you laugh, no matter what mood you’re in?

RK Kevin Hart or Eddie Murphy •

thinkrealty . com | 13

YOU’RE INVITED Join us for the 11th year at the largest national private lender event from the industry’s oldest and largest association. 2020 will bring you 2 days of packed sessions, 60+ exhibitors and 500+ attendees with whom to network and learn. 2020 CONFERENCE ACTIVITIES AAPL Certification Courses • VIP Nightclub Reception Catered Networking Breakfasts • 15+ Sessions & Panels Crowded Vendor Hall • Speed Networking Networking Reception • AAPL Official After Party NOVEMBER 15 - 17, 2020 LAS VEGAS EARLY-BIRD REGISTRATION NOW OPEN AAPLCONFERENCE.COM

14 | think realty magazine :: august 2020

INVESTOR STORIES

VOICES

Investor Voices T his year, Think Realty expos will look a bit different. Right along with you, we have been adapting and navigating new ways of getting things done. But one thing that has not changed is our commitment to bring quality real estate education to YOU! Participants of Think Realty events, whether virtual or in-person, will still walk away with a wealth of information that will help them operate their business and expand their real estate investment portfolios and scale their businesses. We asked a couple experienced real estate entrepreneurs:

QUESTION

WHY IS IT BENEFICIAL FOR REAL ESTATE INVESTORS OFANY LEVEL TOATTENDATHINK REALTY EVENT?

“Think Realty is a ‘one-stop shop’ for all your real estate investing needs. You get introduced to different niches of real estate, acquisition methods, business coaching, and even private lending.“ ANSWER

“I would say because of networking opportunities with the quality and caliber of the people who attend Think Reality events. The best real estate investors from all over the country attend, and I truly believe your network will eventually become your net worth!” ANSWER

Gary Harper CO-FOUNDER OF SHARPER BUSINESS SOLUTIONS

Glenn Stromberg STROMBERG INVESTMENT GROUP

thinkrealty . com | 15

COVER STORY

GARY BEASLEY

Roofstock CEO Gary Beasley brings e-commerce to the real estate industry ONTREND

BYJOE DYTON

16 | think realty magazine :: august 2020

THE BEAUTY OF REAL ESTATE IS THERE’S GENERALLY ABUYER FOR EVERYTYPE OF PROPERTY.”

GARYBEASLEY CEO ROOFSTOCK

thinkrealty . com | 17

Gregor Watson and Gary Beasley, co-founders of Roofstock

T he real estate industry has been somewhat slow to embrace technology when it comes to trans - actions, but for the past five years, Roofstock has been there for those who have been ahead of the game. Oakland, CA-based Roofstock specializes in bringing real estate buyers and sellers together. Inves- tors can use the company’s online platform and purchase occupied properties without doing any of the standard legwork. Roofstock handles the inspections, does the valuation reports and reviews the titles. Inves- tors can use Roofstock to purchase homes in more than 70 markets around the United States. Plus, the recently introduced Roofstock One offers the ability to buy fractions of homes in certain markets if they are looking for diversification with a smaller investment. “I tell people [Roofstock] is a lot like Amazon for houses,” company co-founder and CEO Gary Beasley said. “You can go on our website and

Phoenix without leaving your couch.” Beasley and Gregor Watson co-founded Roofstock because they noticed it was not efficient to sell a home with a tenant in it. Beasley said Watson tried to sell leased homes in Dallas but could not find a broker to take the listings. “One [broker] didn’t have 500 signs and the other said, ‘You need to kick the people out first so I can sell it’,” Beasley said. “So it was originally Gregor’s insight that said, ‘Hey, if there was a marketplace that could sell homes that had tenants in them already—wouldn’t that be better for the seller and the buyer?’” Rich Ford, who was the leading investment banker in the emerging single-family rental sector, joined Watson and Beasley as a Roofstock co-founder. They shared a com- mon vision — that with Roofstock’s platform, the seller wouldn’t lose several months of income (due to the home being vacant) or have to hire an agent and pay a large commis- sion. Instead, they could pay Roof-

instead of seeing books or shoes, you see houses that you can buy on our site in an e-commerce environment.” Roofstock’s approach to real estate transactions is what sets the company apart. Typically, an in- vestor will see a home on the MLS and perhaps make an offer. When the property is under contract and goes through inspection, however, negotiation may ensue based on what is found. Roofstock tackles the diligence ahead of time. This allows investors to go from bid to contract to closing without much trouble. “It’s a much more transparent way to buy because you know exactly what you’re bidding on,” Beasley said. “It’s also very convenient for renters because they’re only dis- turbed once. Because you come in, do the inspections and say, ‘thank you very much.’ You don’t have people coming by touring the home, which is one of the challenges with rentals. Since we do all of that once, you could be in New Jersey buy- ing homes in Memphis, Atlanta, or

18 | think realty magazine :: august 2020

it for free. “If we have to sell it for less, we’ll make up the difference,” Beasley said. “It’s this idea of getting a mar- ketplace going—you have to stand behind your product and we’ve done that since our very early days.” Beasley pointed to three critical areas that will help Roofstock continue to grow: • Deliver outstanding customer service to buyers and sellers; • Continue to improve underwriting

so investors who visit the company site can see well-

presented listings with >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96 Page 97 Page 98 Page 99 Page 100

Made with FlippingBook Online newsletter