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Preview Our Letter to VIP Members – Be the FIRST to Know!

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The Following Note Was Sent to Our VIP Members Hours Ago.

Would You Like to be The FIRST To Get Our Information? Sign Up Now!

BREAKING: LONE STAR EXPO IN HOUSTON

– VIEW OUR NEW LANDING PAGE & REGISTER NOW! –

 

Dear Realty411 VIP Member:

We cherish your connection with us!

Perhaps you met us in person at an event? Or maybe you initially connected with us on social media?

Whatever the case may be, you are one of our VIP MEMBERS, which entitles you to “INSIDER INFORMATION”.

As a special treat, we are giving you FIRST VIEW at our NEW EVENT landing page promoting our Lone Star Real Estate Investor’s Expo in Houston, Texas.

CLICK HERE TO SEE IT NOW!

We have an AMAZING day scheduled with TOP NOTCH guests ready to share their knowledge and expertise of real estate investing. Most of our speakers have been ACTIVE in real estate between 20 to 40 YEARS!

We also have several attorneys on hand speaking, who are ready to answer YOUR complicated questions too, so…

BRING IT ON! WE HAVE THE EXPERTS HERE…

So far, we have events lined up in South Florida, Northern California, Southern California and Texas lined up for 2019.

And, because you’re a VIP MEMBER, you will be the FIRST TO RECEIVE THE 411 on the rest of our scheduled events, articles, podcasts, video updates, webinars, and more.

For now, be sure to visit our BRAND-NEW Lone Star Expo page for the latest information about our event in Texas. We urge you to INVEST TIME AND JOIN US IN HOUSTON.

Many of our readers fly thousands of miles or drive numerous hours to attend our events around the country. They know how VALUABLE it is to CONNECT IN PERSON. They essentially build their REI network through us, and we encourage it.

If you want to see your business, connections, influence, portfolio and BANK ACCOUNT skyrocket in 2019, then you need to GET OFF THE COMPUTER! Instead of spending hours on social media, join us to meet local and national leaders who WANT TO HELP YOU succeed in 2019, and beyond.

CLICK HERE TO VIEW NOW!

Thank you once again for your valuable time and support, which mean so much!

Do us a favor and help our COMPLIMENTARY magazine grow by sharing Realty411 with a friend, family member, or colleague interested in growing their knowledge of real estate investing.

Thank You Again, and Happy Holidays!

Linda Pliagas

Publisher, REALTY411

PS: Have a question, comment or complaint? Call us anytime @ 805.693.1497

A Rehab Repair Estimator

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An Exclusive Article Gary Massari and Bruce Kellogg

Introduction To Real Estate Matters

This is an initial article in a new series called, “Gary’s Real Estate Matters” from Gary Massari, CEO of REI Fortunes and Bruce Kellogg, Real Estate Consultant.  In this article you will learn the importance of estimating repair and renovation improvements and how you can benefit financially!

Use With Contractors

When working with contractors, you can save money several ways; first, buy your own materials and only hire the contractor for labor. This will save you 20% on materials that contractors mark up.  Secondly, if you are a veteran, Home Depot will give you a 10% discount. If not, then find a friend who is a veteran to make your material purchases for you.

We are going to show you a template we use so you can see how it works, especially with contractors and sub-contractors for each area of rehab. It is important for the bidding to be uniform so that careful comparisons among bids can be made. If a bidder departs from the estimator, there must be discussion to reconcile any differences. Otherwise, you are comparing apples and oranges, as the saying goes.

Building Your Own Estimator

There are a lot of cost estimators you can get for free by searching Google, but designing your own to meet your specific needs is far better and more accurate.

When designing your estimator using an Excel spreadsheet, there are four summary parts you want to include to the estimator:

  1. Exterior
  2. Interior
  3. Mechanics
  4. Other

Exterior will look something like this…

Notice that the UNIT SF works together with the COST (unit price) to calculate the total cost, as in this case for a new roof.  You can easily contact a roofing contractor in your area to get a square foot cost to replace a roof.

Here are the categories for the Exterior:

  1. Roof
  2. Gutters
  3. Finish
  4. Masonry
  5. Painting
  6. Windows
  7. Garage
  8. Landscaping
  9. Concrete/Asphalt
  10. Decks
  11. Fence
  12. Pool
  13. Septic

Here are the categories for the Interior:

  1. Painting
  2. Hardwood
  3. Carpet/Vinyl
  4. Kitchen cabinets, flooring, counter tops, electrical & plumbing
  5. Appliances
  6. Bathroom
  7. Framing
  8. Insulation
  9. Walls
  10. Doors & Trim
  11. Basement
  12. Foundation

Mechanical

  1. HVAC
  2. Plumbing
  3. Electrical

Other

  • Demo & Dumpsters
  • Termites/Mold
  • Permits

Concluding Remarks

  • The unit cost in our example is based on the San Francisco Bay area. They will need to be revised for areas that have substantially different cost structures. Input from local contractors submitting bids should make this possible.
  • In many markets around the country, sale prices are now declining. Therefore, it is critically important that rehab costs be estimated accurately, and an extra margin be added for safety.
  • Put a Yes/No column, and that way you can walk through a home in minutes and mark Y or N based on your observations. When you leave you can then calculate the cost.
  • Make sure you add a 10% to 20% contingency to the total project to cover unknowns. Some hard money lenders will only allow 5% overall contingency, so in that case pad your line items to include a sufficient contingency.
  • When doing major renovations, it is wise to get SKU numbers for your kitchens, bathrooms and mechanical items.
  • The best use of a detailed cost estimate is to assure that you have covered your bases to have a profitable project, and to convince your investor as a wholesaler of your accuracy and credibility.
  • Your cost estimator will also come in handy when you negotiate your final offer on a discounted property to assure profitability.

Let Gary and Bruce know if this article helped you, and write us to request other topics.  You can always reach either of us by calling us or emailing us… Gary Massari, CEO REI Fortunes, https://reifortunes.com

925-451-1619 [email protected]

Bruce Kellogg, Real Estate Consultant, [email protected] (408) 489-0131

 

Skrrt, Skrrt… Cars and Real Estate…

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Exclusive Article by Fuquan Bilal, NNG Capital Fund

Before I discovered real estate I had a passion for cars. I even owned a body shop as one of my first businesses. I now keep my businesses and investments diversified within the real estate industry. Yet, I still love cars, and there are a lot of great lessons that correlate between the two.

When I was younger (and often lived above my means) I had Range Rovers and new BMWs. I would lease and trade in every year to get the latest model. I liked to live flashy, like many new real estate investors do.

I’ve learned and matured a lot since then.

I now drive this 1982 seven series BMW. I’ve had it since 2010. I restored it, and still love working on it.

It’s one of those great pet projects that is good for distraction and decompression from the business. It recharges me.

 

When I visit places like Miami, I’m still excited by new supercars and exotics. I can appreciate the appeal. But, I’m honestly much happier now with my classic.

It’s durable. It’s a vehicle that lasts. I purchased it as a long term investment. I’ll still have to keep up with maintenance and will make modifications. It’s worth it though. It’s rewarding to make a better product.

Classic cars like these go up in value over time, instead of down. This is another reason it really made sense to me.

I invest in real estate for the same reasons. It’s durable, can go up in value, lasts long term, and can be fun and rewarding to see the transformation when remodeling rental properties.

The cash flow from my apartment investments allowed me to recently purchase a car for my mom too, as she always wanted to drive mine!

I’m so grateful that my smart investments allowed me to go pay cash for a car for her. It was not a brand new car, but it was a strategic investment.

It won’t be long before my kids are ready to drive too. When it’s time, I’ll work with them to buy a mortgage note. Then they can use the income from that investment to buy a car or make payments on one if they really want to go that way.

What are you driving and why?

Investment Opportunities:

Find out more about investing in secured debt and real estate, go to NNG Capital Fund

New IRS RULES for LLC’s & LP’s Taxed As Partnerships

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What has changed? What Stays the Same?

Find Out Valuable Tax Information Here.

by Garrett Sutton, Esq.

The new rules change how the IRS can audit an LLC or LP. In the past, an IRS audit of an LLC or LP taxed as a partnership involved auditing, settling and collecting tax shortfalls from each individual partner. In a master limited partnership (think oil and gas or real estate) with thousands of partners, this was very difficult.

The IRS decided (and Congress approved) that it was best to conduct audits at the entity (LLC or LP) level. They now can just audit the entity and not the individual partners. In many situations, the entity – and not the partners – will pay any tax shortfall. The new program is called the Centralized Partnership Audit Regime.

What if my LLC is taxed as an S Corporation or C Corporation?

The new rules only apply to LLCs taxed as partnerships. However, in the event of a change of taxation, it will be important to amend your LLC Operating Agreement.

How does the IRS benefit from the change?

The new rules allow the IRS to deal with only one point of contact – the Partnership Representative. This individual, who does not haveto be a member or partner, has the power to obligate the entire group.

The IRS will benefit from LLCs and LPs not being able to give them the run around on who has authority for the entity (which did occur under the old rules.)

They will also benefit from being able to asses any tax shortfalls against the entity itself and not the individual partners.

Why is the Partnership Representative so important?

The Partnership Representative has broad powers to obligate the LLC or LP. Any resolution they arrive at with the IRS binds all of the partners. You want to have the right person in place for this.

If you don’t appoint such a person, the IRS can appoint someone for you. You don’t want the IRS to have such a power over your entity. This is a key reason why LLC Operating Agreements and LP Limited Partnership Agreements must be amended to pre-appoint a Partnership Representative.

Who can be the Partnership Representative?

The Partnership Representative must be an individual with a substantial presence in the United States. Initially, we typically appoint a General Partner of an LP or a Manager/Member of an LLC to fill this role.

If the IRS later conducts an audit, a CPA or tax lawyer, who does not have to be a Partner or Member, can be appointed if desired. A professional firm can serve in this role but an individual with a substantial U.S. presence must also be identified.

Again, if you don’t appoint one, the IRS can do it for you, which is not in your best interest.

Can I opt out of these new rules?

Yes – but we don’t suggest it. Partnerships with no more than 100 eligible partners (and not one ineligible partner) can opt out and be governed by the old rules. However, ineligible partners include single member LLCs and living trusts.

Virtually all of our clients currently or in the future will use a single member Wyoming LLC and/or a revocable living trust for their asset protection and estate planning goals. These strategies involve ineligible partners.

If you opt out and a single member LLC or a living trust becomes a partner then you are back into the new rules. But because you didn’t amend your documents and appoint a Partnership Representative, the IRS now gets to pick one for you. You don’t want to give them such power.

Will there be greater IRS scrutiny of those who opt out?

Yes, as the IRS has posted on their website:

“To ensure that the election out rules are not used solely to frustrate IRS compliance efforts, the IRS intends to carefully review a partnership’s decision to elect out of the Centralized Partnership Audit Regime. This review will include analyzing whether the partnership has correctly identified all of its partners for federal income tax purposes notwithstanding who the partnership reports as its partners. For instance, the IRS will be reviewing the partnership’s partners to confirm that the partners are not nominees or agents for the beneficial owner.”

To stay compliant on the opt out, every year your CPA must provide the IRS with the name and tax ID of each partner. If they forget to do so you are under the new rules (without an appointed Partnership Representative). The IRS scrutiny and consequences of a simple error are not worth the supposed benefits of opting out.

What if a Partner owes money for year 2020 but is no longer a partner after an audit in year 2022?

A very good question. In many cases, the LLC or LP will pay the tax and assess the partners. What if a year 2020 partner is long gone? We have included language in the amended documents which allows a general partner/manager to go after former partners.

We have also included language to identify who will be responsible for prior year tax obligations upon a transfer of interest. But under the new rules there is a risk that current owners could be responsible for the taxes of former owners.

When do the new rules take effect?

The new rules apply for tax years beginning January 1, 2018. LLC Operating Agreements and LP Limited Partnership Agreements should be amended before that date.

What should I do now?

You should work with your attorney to amend your documents. You should discuss with your CPA that you are accepting the new audit rules. Once your documents are amended all Members/Partners should sign them in order for the transaction to be valid.

What does Corporate Direct charge to do this work?

Garrett Sutton, Esq.

As a service to our clients, we are charging just $295 for an amended and restated document. We will also include meeting minutes in which all partners approve of the new rules. It is your responsibility to make sure everyone signs the new agreement.

This is a minimum price and may be higher due to complexity and number of owners. For your friends and family members who are not our clients, the minimum amendment price is $670, which included one year of registered agent service in the domestic state.

Corporate Direct has also created a new service to better protect Wyoming LLCs. An explanation of our Armor8™ service is found on our website. Because the Armor8™ service also requires an amendment to your Wyoming LLC Operating Agreement, we will include such amendments to our existing clients at no extra charge through March 1st, 2018.

 

Please take the time to call your Incorporating Specialist at 1-800-600-1760 to arrange for the amendment of your documents before the end of the year.

Realty411’s 3-Day VIP Bootcamp – Free Event, Must Register

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Linda Pliagas, in conjunction with… REALTY411

With the legendary Dr. Albert Lowry, presents*

Your Perpetual Money Machine!

Dear Future Millionaire,

We are inviting you to attend our Brand New 3-Day Live Intensive Training ABSOLUTELY FREE!!! These training sessions only happen a few times a year, so don’t miss this rare opportunity.

You Will Not Be Left Out, Like So Many Others Were…

Over 21,000 people attended the Real Estate Wealth Expos featuring Donald Trump, Robert Kiyosaki, Suze Orman, Reggie Brooks, Tony Robbins, and the Legendary Dr. Albert Lowry. The response for Dr. Lowry’s Auctions and Foreclosure seminar was so enormous that many attendees complained they couldn’t get in to see him. We Are Lucky to Have the Guru of Gurus to Teach Us for 3 Days. Mark Your Calendar and Register Now… Every seat will be filled, space will be limited.

Go to: REALTY411.com/register Or Call: (805) 693-1497

Make $50,000 Cash or more in the next 60 days!

You Will Learn:

  • How to write an “ALL CASH” offer and get a great deal without using your own money
  • How to buy foreclosures from banks and trust companies at wholesale
  • How to use Options to make big money without buying
  • How to make money by assigning contracts and laugh all the way to the bank!
  • How to buy a home with no job and bad credit
  • How to dramatically reduce your taxes up to 70% legally
  • How to use FREE GOVERNMENT MONEY to help fund your deals!

… And Much, Much More!

Learn how people just like you are making fortunes using the

little-known Shadow Inventory Real Estate markets!

You Will Learn How to Make Big Money Fast,

Using the Bank’s Shadow Inventory…

This is the foreclosure inventory that has not been released to the general public. Amherst Securities, a leading research firm, places the number of homes included in this Shadow Inventory at approximately 7 million. This means great opportunity for those of you who learn and act now!

Many of these properties have been purchased with 100% financing, 110% financing, and a few where only 10% cash down payment was required. Just imagine how this one process can propel you to success and change your life.

Look What Others Are Saying:

“In the three weeks since Shanna and I attended Dr. Lowry’s seminar, we closed on our first rental property and are in the process of closing on a duplex and another house. Our positive cash flow from these three deals alone should exceed $1750 per month while the relatively minor repairs we made will have increased the value of the properties by a total of $90,000.”

~ W. S. Mueller

“I’ve made millions using the investment principles that Dr. Lowry teaches. I made over $100,000 extra profit on one house alone. Also, my wife, son, and daughter took his training and we’re all financially independent. We’ll never have to work for anyone else again.”

~ Reggie Brooks

“Dr. Lowry started me on a whole new path of discovery. As a result of Dr. Lowry’s teachings, I have purchased a total of over 1000 properties across Canada. Thanks, Al!”

~ Raymond Aaron

“After hearing your outstanding material, we tied up a 4plex property under contract the next day after the event. Using friends and family contacts, we were surprised how easy it was to assign the property for fee of $5000 the day AFTER that! We actually achieved infinite returns since we hadn’t even given the deposit check. The ‘to be’ buyer fronted all the deposit costs!!”

~ Shamim Rajan

“You can’t afford not to go! Everyone can benefit from his training. There is so much information that you probably will not learn anywhere else that can help you learn legally not to not pay taxes on income, thus maximizing your income. You can’t go wrong! Taught by an incredibly knowledgeable man who’s been there, done that, an excellent teacher. I would definitely go again, it was well worth it.”

~ Mary Sides

You Can Become a Real Estate “Super Investor”

√ Put A Deal Together Starting from Scratch – Learn Step-by-Step how you too can start living your life with FINANCIAL FREEDOM. We start with the basics of property finding. This is a major eye opener!! Most could never imagine so many great methods of finding the best deals. Then we take you into the advanced techniques of property finding that only seasoned professionals know about. You will be using these methods right from the start to buy and hold or sell SUPER BARGAINS. Next, you will learn exactly how much to offer for a property so you know you have a bargain. This makes you a professional. A true bargain hunter!!

√ Find Real Estate Deals Loaded With Profits – This special training is designed to HELP YOU PROFIT in good times or bad! We focus on giving you the knowledge and the ability to buy property the right way, do quick repairs and then sell them for BIG profits! You will learn this through detailed instructions.

√ Spend The Least Amount of Money And Get The Biggest Profits! – You will learn how to sell a deal using proven methods to get the highest price for your house. This is where knowing how to get the most for the home and how to save on closing costs will add up to thousands of extra dollars to buy cars, vacations, homes and education for you and your family. Remember, once you know how to sell properties correctly, the way the pros do, you have a way of making big money that will give you Financial Freedom!

You’ll Finally Learn How to Have Complete Control of Your Time, Your Income, Your Dreams, and Your Future!

Become a real estate “Super Achiever”, establishing an incredible Home-Based Business. Benefit from the numerous government loans and grants that are available that are just waiting for you to tap into. Learn how to acquire real estate and personal property for just pennies on the dollar, with none of your own money. You can retire to a worry–free lifestyle…

3 Amazing Bonuses — Just for YOU!

We’ve put together some very special BONUSES for you that you will get when you attend the entire event, and we are giving away thousands of dollars in prizes:

Bonus 1: From The “Educational Success Series”, a 15 part automatic subscription to special reports that will give you tips and tricks to maximize profits in any market.

Bonus 2: Prize Drawing of “Cabo San Lucas Vacations” for 2. We are giving away several of these vacation prizes throughout the entire weekend. There is an excellent chance you may be one of the winners!

Bonus 3: A Grand Prize Draw Worth $THOUSAND$! Travel the world with over 3000 destinations to choose from!! Maybe you’ll be the lucky winner!! So please come and let us teach you how to become a true Real Estate Entrepreneur. This special event happens only once a year in this area, and it is always sold out.

Remember, you must pre-register to reserve your seat in the class. Our regular tuition is $2,900.00.

However, because of your affiliation with REALTY411, and/or Linda Pliagas, at this special event YOU AND YOUR SPOUSE OR PARTNER CAN COME FOR FREE! WOW!

Take advantage of this “Once in a Lifetime” opportunity to be taught by the legendary Dr. Albert Lowry for a pittance. You might never have this opportunity again.

Ideally located amidst the picturesque setting of the Marina Del Rey Harbor and Marina Beach, the Hilton Garden Inn Los Angeles Marina Del Rey hotel is only 6.5 miles north of LAX and is within easy reach of a vibrant range of local attractions including Venice Beach Boardwalk and Downtown Los Angeles. This stylish Los Angeles hotel also offers easy access to several universities and businesses, making it perfect for both business and leisure travelers

January 18th, 19th and 20th, 2019

Friday, Saturday & Sunday | 9 am to 5 pm

Hilton Garden Inn

4200 Admiralty Way

Marina Del Rey, Ca.

Go to: REALTY411.com/register

Or Call: (805) 693-1497

Copyright 2018 – All Rights Reserved – City Housing Services, LLC

* This is a sponsored post and event; the information presented has not been reviewed by Realty411 magazine nor its staff.

Who’s Creepin’ After You? Read This REAL-LIFE Story Now…

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– Please review this important post from our sponsor –

Dear Realty411 Reader;

Remember I wrote you about Randy Hughes? He’s that real estate investor who has taken it upon himself to learn all he can about privacy and asset protection. He’s learned so much,and applied what he learned in his own investment business, that people contact him from all over the country with their questions.

Randy shared a shocking story with me.

A while back this lady, an investor, calls him from Florida, needing his help like right away! Randy could tell this was an urgent situation for his caller, so he asked her, “What’s going on?” The lady proceeds to tell him that she is being stalked, by one of her tenants mind you, and her stalker went to the courthouse to find the addresses of all her properties. She has heard from her residents that the stalker is going from property to property, until he finds the one at which she lives.

Can you imagine?

Well, you’d better imagine. You’ll be safer if you do. As scary as that situation was for the lady (and Randy was able to provide her some help, by the way) your future may hold something even more upsetting.

That’s why I’ve invited Randy to share some of his knowledge about the unique opportunities for financial privacy we have as real estate investors during a workshop especially for us.

Register for it here.

Randy has found we do have control over what people find out about us in the public record. And he’s going to share some of what he’s learned with us.

Best of all, I’ve asked Randy to tell us how we can use this control in our own investment businesses free of charge. That’s right: FREE. Some people pay $1500 to $2000 per property to put this control in place.

Keep the creepers away.

Registering for this free workshop is an essential first step.

THERE ARE LIMITED SPACES SO REGISTER NOW AT THIS LINK.

To our continued success,

Linda Pliagas
Publisher, Realty411

P.S. Stop making it easy for stalkers and other misguided people to find you.

P.P.S. I will see you on the training event!

Sponsor Realty411’s next informative post and reach investors in 48 states and over 60 countries, for details, please DOWNLOAD our new readership report. Call Realty411 for your real estate marketing needs @ 805.693.1497.

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