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Leaving nothing to chance with your property

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Image from Pixabay

Experts share tips for drafting effective real estate succession plan

By Brad Nelson, Senior Real Estate Asset Manager, BOK Financial & Dan Bartell, president of Bartell and Company Real Estate Wealth Management

Ensuring those who inherit your real estate property don’t inherit a headache means having a plan in place.  A real estate succession plan is one piece of a bigger estate planning strategy, as it helps protect assets, maintains or increases cash-flow for future generations, and yields more effective and flexible tax strategies. A real estate succession plan plays an important part in helping you achieve your goals and investment objectives.

If someone passes away without a succession blueprint in place, things like what to do with inherited real estate are left to chance.

Image from Pixabay

Many times, family members who inherit real estate want to sell it before they even know what they have.  They typically don’t have the expertise to take on the role of a real estate professional who can help them evaluate the assets. Without the real estate expertise, the beneficiaries default into selling the assets without knowing the potential value of what they have inherited.  In many cases real estate property may be re-developed into something bigger or more valuable than the original zoning, all of which would/could make it a more favorable investment.  Having a plan in place can also help eliminate unnecessary and unexpected family conflict that arises from an under-qualified individual being left to manage the asset.

When it comes to the creation of a real estate succession plan, we suggest keeping a few things in mind.

Analyze family conditions

This analysis involves taking a thorough look at family dynamics and the individual relationships. It also takes into account stages of life of stakeholders, which can have an impact on the members’ needs and how the plan moves forward.  This step involves determining to whom, and how, the asset will be transferred, and who will be managing the real estate assets, and establishing goals and objectives.

Image from Pixabay

In each case it’s important to consider if those being named as inheritors or managers are qualified to manage this type of asset.  Do they have the appropriate licenses, maturity and experiences?  Could this cause additional contention or division amongst other family members? These are important questions to ask at this phase.

The ages of everyone involved also matters. Their season of life will affect the lens they use to view things like assets and income, so these are important considerations to keep in mind.  As an analogy, an aging parent who has a long history of successful real estate experience may want to keep their feet in the investment world without too much personal involvement, and without subjecting his/her children to undue risk.  However, the children who view growing market conditions in their area might want to push the envelope and do more within an established strategy.

The parent and the children are seeing the situation from different walks of life, with different goals and experiences. There are ways to help the two generations find common ground and share in appropriate risk and potential reward, rather than investing and developing simply because they can.

Have frank discussions

Having frank discussions is where people tend to struggle the most.  Sometimes people are reluctant, but it is important to have honest and open conversations with your estate attorney and wealth management advisor regarding the future of the family.  It’s best to be open about goals and obstacles that could arise down the road.

Image from Pixabay

Knee-jerk responses to dramatic life events can yield irrational investment behavior.  Making assumptions about an individual’s intrinsic motivation and perception of the situation can yield drastically negative results.  Asking the parties not only what they need out of the real estate, but also why having the real estate itself is meaningful, is sometimes difficult—but often cathartic. Asking this type of question smooths the course, maintains positive relationships, and often has a positive impact on the health of the investment.

Evaluate the asset’s performance

People don’t always take the time to look closely at a real estate asset and evaluate if it’s performing as well as it can and how it reacts to different circumstances. Partnerwith a real estate professional to have an analytics report completed on the asset to understand past, present and future forecasting performance.

The performance analysis should include the following:

  • Investment objectives
  • Historical performance as compared to the market/submarket
  • Debt service coverage analysis
  • Asset basis
  • Cash on cash returns
  • Current condition of property
  • Internal rate of return
  • Cash flow
  • Cash reserve analysis

The analysis should focus on the strategies that can be implemented to maximize cash flow while adding value, as well determining if the asset is underutilized or underperforming.

Image from Pixabay

Understand the risk

It’s important to get a full understanding of the different elements that make up your real estate and how they might perform in the context of today’s world, while considering future uncertainties and risks.

In working to understand the risk, there are some additional key questions to consider:

  • Are there any environmental issues?
  • How is the asset currently titled?
  • Has an insurance valuation been performed to ensure adequate coverage?
  • Are the returns acceptable as it relates to the overall risk?

When it comes to a real estate succession plan, or an estate plan, it isn’t one and done.  Family dynamics, situations and values change, and will need to be re-visited along with those ongoing conversations.

Register for Our NEW VIRTUAL Expo on the Weekend of November 13th and 14th

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Attention investors, it’s time for another educational and exciting Realty411’s VIRTUAL Investor & Industry Expo. This NEW 411 VIRTUAL event will be hosted on the latest virtual event technology direct from Silicon Valley.

Starting at 9 AM PT on the weekend of November 13th and November 14th, guests can join Realty411’s complimentary expo and enter Realty411’s virtual expo world featuring a lobby, vendor hall, auditorium and lounge.

Guests can network directly with each speaker, plus corporate exhibitors who will be joining us as well — all virtually! Realty411 is hosting this Virtual Investor and Industry Expo to share important knowledge, as well as to unite investors with top companies joining in from around the nation.

Enter our virtual world for Realty411’s VIRTUAL Investor & Industry Expo.

For this exclusive VIRTUAL and Tech-savvy Interactive Expo, guests will learn directly from some of the industry’s top leaders, as well as newcomers who are already leaving their mark of success. After hearing our live presentations, stop by the auditorium to view videos produced specifically for this expo.

Realty411 has a jam-packed VIRTUAL weekend event filled with life-changing incredible knowledge to transform portfolios and change lives. This event is for new investors as well as accredited realty moguls alike.

To learn about the incredible educators joining us, CLICK HERE. Investors of every level can find and will discover the latest techniques, strategies, and tips that will be of great benefit.

Learn more about Realty411’s VIRTUAL Investor & Industry Expo by watching this video, CLICK HERE. After, be sure to register for the event so you can start exploring our NEW VIRTUAL Expo platform.

RSVP for our VIRTUAL Interactive & Industry Expo at:

https://ezxpo.biz/realty411expo/attendee_register

Brandon Cobb Leads Investors To High Performing Recession Resistant Assets

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By Tim Houghten

Founder of The House Buyin’ Guys and HBG Capital, Brandon Cobb is leading investors to new forms of high performing and recession resistant assets this year.

We recently caught up with him to find out what he is investing in now, why, his take on the markets, and how to make great investment choices among uncertainty.

Expanding & Diversifying

We last caught up with Brandon in the midst of the pandemic in 2020. His company was thriving through COVID, with double digit growth, great spreads on deals and lots of volume in the single family space. It was their best year up until that point.

Image from Pixabay

Their building, rehabbing, flipping and wholesaling ventures in the Middle TN market were exploding, especially as many investors had chosen to sit on the sidelines afraid of the market. Single family inventory was plentiful, deeper discounts were widely available, competition was low, and on the flip side deals ended up selling for incredible profits as house prices boomed.

Of course, as others watched this success and wanted a piece of it, everyone wanted to jump back into the market at the same time and mimic it. Inventory disappeared and green investors have bid up home prices to wild highs in many parts of the country.

Brandon and his Middle Tennessee business are still doing very well there. Yet, he has also evolved his strategies and opened up new opportunities for investors.

Although deeply tragic on a personal level, the pandemic has been very good to many financially as well. Brandon has found many investors with plentiful capital looking to deploy it in the right assets, and especially in the real estate space.

The truth is that no one knows what the medium term holds for the economy, country and real estate. There are many wildcard factors that could be played. For now, it seems like the outlook remains incredibly strong through the end of the year. In the long run we all know that real estate has proven to be invaluable.

While it looks like the worst may be over, many analysts still see the potential for a recession in the near future as the impacts of recent policies add up and become evident.

After a long and insane run, analysts, including the Chief Investment Strategist of Bank Of America are predicting the global economy and public stock market are headed for at least a ‘flash recession’ in the second half of 2021. In fact, with the exception of a few categories like real estate, healthcare, and utilities which have covered up losses elsewhere, behind the scenes many commodities have fallen by over 20%. Even Peter Theil’s big tech company has reportedly been making big moves into tangible assets. Jeff Bezos has hit the news headlines for a few times for selling off his Amazon stock and bolstering his personal real estate portfolio instead.

All this together prompted Brandon to start giving investors access to more high quality and bigger deals in new places.

Image from Pixabay

He’s been flying around the country, and even the world to source and vet the best opportunities. Including a 384 unit, $42M apartment building with 97% occupancy that they helped close on in Daytona Beach, FL.

There Are Great Performing, Solid Deals Out There

Despite some misinformation and over exaggeration in the media, and the real competition and compressed returns in the single family market there are high performing assets to buy into. There are acquisition opportunities which have not only proven to thrive through COVID (and hence should through any other crises), but are ideally situated to survive and even see improved performance in a potential recession.

Brandon sees opportunities lying in the multifamily and commercial real estate space.

You have to look a little further for them, dig a little deeper, have better connections and a stronger network and do more investigation, but they are out there.

What Brandon Is Investing In Now

With the launch of HBG Capital, Brandon has created a new platform enabling other investors to participate in the deals he is engaging in, and to learn how he is doing it.

While he makes no guarantees of performance, and past performance isn’t always an indicator of future performance, he has produced stable double digit returns for investors throughout the years and at least up until now.

Today he is helping those with capital to invest, those who want to smooth out their returns and avoid the extreme volatility of the public stock market, and desire hard asset backed investments. As well as busy high income earners who simply know that they need to diversify their asset allocation into real estate, but don’t have the time to do it all themselves.

In the multifamily space HBG Capital is mainly focused on 100 unit plus acquisitions to benefit from all of the economies of scale that they offer.

On the commercial real estate front he says they are again looking at recession resistant properties like self-storage and assisted living complexes.

It’s All About The Due Diligence: Integrity & Equity

Success in real estate investing, and especially in times like these all comes down to the due diligence. Doing your homework and screening opportunities.

Image from Pixabay

In fact he says his firm only pursues 2% to 3% of deals they are presented with, after they’ve gone through their rigorous vetting process.

He says the two most important factors in this are:

1. The integrity of the person you are dealing with, and their capabilities
2. The amount of equity in the deal and current existing performance

Most deals fail to pass these factors.

Brandon has also just published a new book on the subject, which you can download for free on their website www.HBGcapital.net

‘Due Diligence: 100 Questions Passive Investors Should be Asking Before Investing’ is the book that outlines everything you should ask and know before making an investment, and how he and his firm are qualifying opportunities.

More Ways To Outperform

Image from Pixabay

Other ways Brandon and his teams have continued to outperform the market no matter what comes along include the following:

  • Keeping the construction in-house to combat asset management, inflation, and other external threats
  • Keeping the map open to invest where the best deals are
  • Adjusting your buying criteria with the market changes and outlook
  • Regularly review your past deals to see what’s working best and where you are leaving money on the table
  • Partner with world class operators with proven track records

Conclusion

Even despite pandemic lockdowns and restrictions real estate investors like Brandon Cobb have proven to survive and thrive. As the market continues to grow, those leading the way are continuously expanding and diversifying into new assets.

To make the best investments in this sector now, be sure you are doing your due diligence, and are aligning with great partners.

Equip yourself for this with Brandon’s new book for free, and check out HBG Capital’s process at HBGCapital.net.

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411.com or our Eventbrite landing page, CLICK HERE.

Is Austin The Wrong Place to Invest In 2021?

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Image from Pixabay

By Adiel Gorel

I get many calls from people interested in buying in various cities and want my opinion.

One of the popular markets right now is the Austin metro area (people get excited about the overall thriving of the local high-tech scene, Elon Musk publicly decamping to Austin, and others moving there from California). It is tempting to think of Austin as a good destination to buy in 2021. However, in my opinion, it is not! Austin, in fact, is a good city to be a SELLER in 2021. Austin prices have climbed rapidly in the past six years, while rents went up much more slowly. As a result, the rents are too low to cover all expenses.

One expense in Austin (and in the state of Texas overall) is the very high property taxes. The property taxes in the Austin metro can get to almost 3% of the home value per year (depending on county and town). That is over 2.5 TIMES the property tax rate in Oklahoma (or California). Together, the high prices, relatively low rents (relative to the prices, that is), and the high property taxes, as well as high insurance costs, create an untenable cash flow.

Image from Pexels

Here is a partial headline of a Business Insider article “Elon Musk and other tech powerhouses are flocking to Texas, pushing an already bonkers real-estate market to new heights”. Just logically, do you want to be a buyer in a market that is “already bonkers” and now is being pushed up even more? They have a name for such a market in the real estate world: “A strong Seller’s’ Market”.

Do you want to be the BUYER in that strong Sellers’ market? You will be the one paying “bonkers” price to the savvy sellers, fending off multiple offers higher than list price.

It is very tempting for a California resident to say, “What? I can buy a new home in Austin for “only” $320,000? That is so cheap! Yes, it is. “Cheap” relative to San Francisco prices. However, it is not cheap to buy as a sound rental home, and has bad cash flow.

Austin is a place where many of our savvy investors are now SELLING, as the selling market is strong. It is not uncommon to see an investor selling one Austin home and buying 3 brand new homes in a 1031 tax-deferred exchange in Oklahoma City, or Tulsa, or Baton Rouge, or Central Florida. This move creates much more quality real estate owned, more 30-year fixed loans at todays’ super low rates, and brand-new properties with brand new roofs, ACs and all other parts of the homes.

Similar logic applies to the Dallas Ft Worth metro area (DFW), Houston, Phoenix, Las Vegas, Nashville, Denver, Salt Lake City, Boise, and others. I even get some investor talking about Seattle and Portland, which make no sense at all. Some misguided reporters (who in many cases have no actual experience in real estate investing themselves) confuse high prices and growth with an attractive place to invest in. The two are not necessarily linked.

An example of another very popular destination for Silicon Valley people leaving to other states, is Miami. Miami is popular, large (much larger than Austin, for example), has an international airport, great weather, beautiful beaches, and proximity to great vacation spots. Miami also has a thriving tech sector. Sounds perfect, right? We should invest in Miami, right? No! Miami prices are way too high to make sense at this time. While the property tax is “only” about 160% of that in Oklahoma or California, the price/rent ratio makes it an unattractive place to invest. Miami has been a magnet for the wealthier set of tech and finance people as of late. The prices reflect it.

There is an interesting article in Business Insider written by a tech person who had moved from San Diego to Austin and regrets it. It’s titled: “I moved my family from California to Austin, Texas, and regretted it. Here are 10 key points every person should consider before relocating.” The author mentions the harsh Texas heat, coupled with humidity, which, in the summer keeps you indoors and runs your AC 24/7, while also bringing scorpions and the like, and being hard on the houses. Of course, he mentions the super-high property taxes and high insurance costs. He talks about the very high cost of power and water, much higher than he had in California. Overall, he was surprised by the cost of living being much higher than he had anticipated. He mentions the travel difficulty, as Austin doesn’t have a large airport, requiring an extra “hop”. He laments the relative lack of public parks and spaces, to which he was used in California. While this is only the account of one high tech family who moved to Austin, and may not reflect everyone’s experience, some of the points are absolute.

Image from Pixabay

We have investors who actually LIVE in Austin. They are absolutely not interested in investing in Austin. They live there. They know how little sense it makes to buy in Austin in 2021. They seek investments in saner markets where the prices, rents, and property taxes, are in much better balance. We also have investor who live in Miami, Phoenix, AND Las Vegas, as well as Portland and Seattle, among many other places. All these investors wouldn’t dream of buying rental homes in the market they live in at this time. They know the insane sellers’ market that exists there, and the way-too-high prices.

This phenomenon is not new. Investors declare they want to “Buy Low, Sell High”. However, in reality, many investors end up “Buying High and Selling Low”. Right now, Austin is the darling market touted for its growth and Elon Musk. The people who are buying super-high in a “bonkers” market, pumped by the media hype, will be the first ones to sell frantically when a recession hits, or even lose those homes to foreclosure. We have seen these scenarios throughout history, time and time again. You see the same phenomena in the stock market. People secretly love to “Buy High”.

The reason is usually “But this market will appreciate a lot!” Really? You mean you know the future? No one else does. Just because a market behaves a certain way, and even booms, it is not necessarily a guarantee of everlasting constant appreciation. We have seen it in many areas of the country.

One other factor that is important to discuss is, again, the heart and soul of single-family home investing in the United States. The reason single family rental homes change futures so effectively and powerfully: The 30-year fixed-rate loan. I talk a lot about the wonder of this loan. A very quick recap for new readers: The monthly PI payment never changes, while everything else in the US economy constantly changes with the cost of living. Same is true for the mortgage balance, which goes down due to amortization, but also never keeps up with the cost of living. This creates incredible futures for people, as inflation constantly erodes the real value of the loan balance and monthly PI payment. No need to wait for 30 years.

Typically, after 12, 14, 16 years, the loan balances are very small relative to the home price. The monthly payment is very small relative to the rent. It is not uncommon for a person to find, after 14 years, that the loan balance (even though the loan still has 16 years to go), is merely 20%-25% or so of the home price. Many sell a couple of homes at this point, and use the after-tax proceeds to pay off several other small loans, and leaving several free and clear homes, enabling them to retire.

People also see how this can send kids to college (even costly colleges), and achieve many other long-term financial life goals.

The reason I hark back to this point in this article, is to remind you that the most important point is to buy a good new single family rental home, put a down payment, and then get the constant power of inflation and the payments by the tenant, to pay off and erode the loan balance, building equity for your future wealth. With today’s astoundingly low rates, strong results may be seen even sooner, perhaps 10, 11 years.

The single-family home is the VEHICLE to let inflation work its magic on the 30-year fixed-rate loan. The location of where you buy the home (as long as it’s large metro areas in the Sun Belt states, where the numbers make sense), is of secondary importance. It would behoove the smart investor to buy in a market where the prices are not “bonkers” and where the rents measure up to the price well, preferably in an environment where property tax and insurance costs are low. This enables the owner to enjoy cash flow (especially with today’s low rates), which building their wealth for the future with the help of inflation.

ICG (International Capital Group) Real Estate Investments was established in the 1980’s. Adiel Gorel, founder and CEO, has been helping people achieve financial security for over three decades, and in that time worked with investors to purchase over 10,000 homes. Gorel is a real estate broker in several states in the U.S., an international keynote speaker, and notable author of three books: Remote Controlled Retirement Riches – The Busy Person’s Guild to Real Estate Investing, Invest Then Rest – How to Buy Single­Family Rental Properties and Remote Control Retirement Riches – How to Change Your Future with Rental Homes. He has been featured on major television and radio networks across the country and in Fortune Magazine. He has also been featured on Public Television with his show, “Remote Control Retirement Riches with Adiel Gorel.” To invite Adiel Gorel to speak for your group, email [email protected] and visit AdielSpeaks.com. For more information on ICG Real Estate Investments visit icgre.com.

The Great Exodus Of Our Time

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By Sensei Gilliland

Investors Are Leaving The Golden State & Big Apple In A Stampede. Here’s What’s Driving Them And Where They Are Going…

We’re seeing a macro shift in migration, capital flows and investor relocation at incredible new levels. Keep reading to learn how wise investors are adapting to this incredible event.

The One Thing You Can Count On Is Change

Image from Pixabay

As much as you might like it to sometimes, nothing ever stays the same forever. Change is the one thing we can bank on.

There are mini cycles and economic rotations which go around every 7 to 15 years. Then there are macro shifts. There are evolving eras, which we’ve seen go from hunter gatherer to agricultural societies, to the industrial era, and now the internet. We are currently experiencing one of those mega shifts which only comes around every 100 years or longer.

The dinosaurs couldn’t adapt to it. All that is left of the great Egyption civilization is crumbling pyramids. Ancient civilizations that once thrived in Machu Picchu and Tulum have left only ruins. Detroit has literally become an urban waste land since the end of the industrial era too. If you haven’t been lately, there are real ruins, weeds and vines taking over once vibrant neighborhoods, and a few urban farmers trying to stick it out among the remnants of a once economic powerhouse.

According to a new report from the Pacific Research Institute and many others, not only is San Francisco, but also Los Angeles, California is checking off all of the boxes on the way to becoming the next Detroit.

This includes increasing taxes, regulation, harassment of businesses, rising crime and riots, and distrust of leaders are some of these signals that lead up to these massive shifts, and the downfall of once great cities. Perhaps some of these things sound familiar to you?

This Exodus Is Far More Significant Than You Think

This isn’t just a few low wage workers who are teachers or restaurant workers leaving high cost states for somewhere they can afford to live.

Image from Pixabay

Almost 700,000 people moved out of California in 2019, before COVID hit. A Berkley study reports that half of registered voters in California have been considering moving out of state. 44% of New Yorkers making $100k a year or more (not even a living wage there) say they plan to move out of their state.

We are talking about millions and tens of millions of people leaving these states. If you thought it was bad before they left, wait until the remaining few realize they have to pick up the tax bills to cover the void by the other half who left. If many are leaving for safety, then crime rates will also be expected to dramatically rise, with the per capita risk of you being a victim of a crime at least doubling.

It’s not just the amount of people leaving either. It is who is leaving that is also making a huge difference. We are talking about the wealthiest and smartest individuals and their companies that employ millions of people. It is a massive wealth and brain drain.

We’re talking about people like Elon Musk and Peter Thiel. Even the New York Stock Exchange has said it will leave NY if newly proposed taxes are implemented.

Those who are left are at least sending their money out of state for safety and better returns.

What’s Driving Them?

There are now many factors driving people and their cash out of coastal states and other major cities, and pulling them to other destinations. These are just some of them.

Affordability

Image from Pixabay

Sheer lack of affordability is one of the top factors driving out residents and capital. Even in Florida, which seemed cheap in comparison to NY and LA at the beginning of 2020, the massive surge in migration has driven up property prices by at least 1,000% in some areas. In Miami some builders are finding excuses to kick out pre-construction investors to be able to resell those same units at top of the market prices. Even in the most rural and cheap areas it has become so expensive that investors are buying distressed homes, and are renting them out at top of the market rents, while leaving tenants to make the homes livable.

It’s not just housing prices either, it is overall cost and quality of living.

When it comes to investing, affordability is the number one factor that analysts look at to gauge where a market is in the cycle, real value, and future potential growth or decline.

Profits & Returns

In addition to these coastal cities, even international investors are looking for smarter places to invest with more value and better returns. Even in Denver investors have been resorting to negative cash flow properties due to such high prices.

Image from Pixabay

It is true rents and house prices may float down in California and New York as millions leave. Yet, they have long been too high to make sense for investors. You should never invest for negative cash flow. If you are just going to gamble, it is probably a lot more fun to go to Vegas and play the games, than go through all of the work to invest, and in something which may have less odds of going up in the short term.

Real estate has taken off in a big way over the last year, not only due to the huge amount of moving activity, but also as people see the stock market and things like Bitcoin just go crazy with no real fundamentals to support them. They are running on vapors and speculation. They offer no downside protection, and rarely reliable passive income.

Anti-Investor & Anti-Business Climate Change

An extremely litigious climate, lack of physical protections for businesses, and a regulatory pattern of trying to crush businesses, entrepreneurship and investors is forcing capital flight and the movement of talent.

Image from Pixabay

These are beautiful places, dear to our hearts, but just make no sense to live and invest in anymore. At best they just want to bleed us and our children dry financially.

Why not go somewhere you are wanted, and that wants you and your family to prosper?

You can always go back home on vacation if you can stomach it.

Safety

Personal safety, property protection, and wealth preservation are all compounding this trend.

Freedom

While many have been working from home and running fully remote businesses, even in real estate for at least 16 years, many are just walking up to the fact that they can live in the Midwest, and get a three bedroom house with a yard for a quarter of the cost in California, while still making NYC and San Fran level wages. They also no longer have to put up with lockdowns and restrictions if they choose not to.

Where Are They Going?

Image from Pixabay

Cleveland, Ohio stands out as one of the top places for people to move and invest in 2021.

Here are just some of the reasons it stands out and it drawing savvy investors:

  • Ranked one of the top 2 most affordable cities in America for 2021
  • Ranked one of top 10 markets to watch this year by Forbes
  • $1B in stimulus being invested in infrastructure and attracting new residents
  • Low volatility
  • Rental property investors can still achieve the 1% rule

It just makes sense. There is positive cash flow to be had, with plenty of room for assets to appreciate over the long term, and low downside risk.

How To Do It

One of the best ways to invest in Cleveland, OH today is in turnkey rental properties. Handsfree investments, producing passive income, with professional management and boots on the ground to support your assets.

Image from Pixabay

In addition to market rate, cash tenants, there are also strong local Section 8 and other housing programs through which the government pays your rent and profits. No worrying about another pandemic.

With prices so cheap, many real estate investors will find they can sell a single unit in California, and buy 7 houses with yards in Cleveland’s suburbs for the same price. Only with a whole lot more cash flow and much better returns and growth prospects. Within an IRA or through a 1031 exchange this can even be done without any tax hit on your capital gains.

It’s the chance to exit mature investments, and diversify for consistent returns. Or more importantly, the ability to sleep well at night, knowing you are set financially.

You can buy a second home to Airbnb while not there, and start spending some vacation time exploring the city, and acquiring more deals. Or go turnkey and handsfree and spend your time in Mexico, traveling the country in your RV, on your own private ranch, while your rentals put money in the bank.

Black Belt Investors is a real estate firm offering education, coaching and turnkey rentals. Get started now by visiting www.BlackBeltInvestors.com or call us at (951) 280-1900.

Eviction Moratorium

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Image from Pexels

By Stephanie Mojica

Property owners can now take steps to evict delinquent renters, according to a U.S. Supreme Court decision that blocked President Joe Biden’s recent moratorium on evictions.

Over objections from three sitting Justices, the Supreme Court ruled on August 26th that the Centers for Diseases Control (CDC) did not have the authorization to enact a moratorium on evictions, according to USA Today.

The court’s majority wrote the following in an eight-page, unsigned opinion:

“It would be one thing if Congress had specifically authorized the action that the CDC has taken. But that has not happened. Instead, the CDC has imposed a nationwide moratorium on evictions in reliance on a decades-old statute that authorizes it to implement measures like fumigation and pest extermination. It strains credulity to believe that this statute grants the CDC the sweeping authority that it asserts.”

The majority further added:

“Congress was on notice that a further extension would almost surely require new legislation, yet it failed to act in the several weeks leading up to the moratorium’s expiration.”

The CDC’s original moratorium had lasted from September 2020 to the end of July 2021 and was designed to quell the spread of COVID-19, according to CNN Business.

On August 3rd, 2021, the CDC issued a new moratorium on evictions that protected about 90% of the country’s renters and drew the ire of many landlords and real estate companies. The new moratorium applied to areas of the country where COVID-19 infection rates are once again spiking due to the Delta variant.

Critics of the eviction moratoriums state that these allow unscrupulous renters to spend money on other things while shafting their rent obligations and causing undue financial distress to landlords. Supporters of the moratoriums claim that dissenting landlords are acting on greed and do not care that innocent people will be left homeless.

Image from Pexels

According to a recent U.S. Census Bureau survey, more than 3 million renters will become homeless in the next two months if alternative solutions are not offered.

Fortunately, there is $46 billion of federal rental relief aid funding available, according to CNN Business. Only about $5 billion had been distributed through the Treasury Department as of July.

Another blow to renters with financial struggles is that three unemployment programs — Pandemic Unemployment Assistance (PUA), Federal Pandemic Unemployment Compensation (FPUC), and Pandemic Emergency Unemployment Compensation (PEUC) — end on September 4th, according to 13 WREX.

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