Tue, 29 December 2015
AIPIS 106 – Alvin E. Roth, Who Gets What – and Why: The New Economics of Matchmaking and Market Design
Today’s guest, Alvin E. Roth, has written a book about markets. If you are wondering what type of market - as Mr. Roth tells us himself - it’s not important what type of market. It’s the market itself. He guides us through the interview discussing chapters of his book, Who Gets What – and Why, with real life examples of the organ donation market and the online matchmaking market. He even shares his thoughts on how realtors have survived in our internet-based, do-it-yourself economy.
[2:15] The rules of a marketplace constitute its design
[5:34] Alvin Roth analyzes the surprising U.S. real estate market
[9:48] Give realtors the 6% they deserve?
[13:33] Matching markets allow you to choose and be chosen
[15:59] The market of donating organs
[18:10] What rules should apply to repugnant transactions
[21:55] The government both interferes and supports all types of contracts
[25:35] Who Gets What – and Why can be used as a field guide to markets
[26:44] How to understand signals of interest
[27:58] The matchmaking market signal experiment
[30:52] Contact information for Alvin Roth
Thu, 24 December 2015
Central Florida is home to one of the biggest family vacation spots in the US. Renting single family homes, with private swimming pools, within one hour of Disney resorts is a lucrative business for foreign real estate investors. The area boasts 62 million visitors last year alone. This episode inspects ways to distinguish the good from the bad deals, and breaks down the ownership costs of a $210 nightly rental.
[1:44] Great values inspired me to invest in Central Florida
[2:13] A common misconception is that everyone makes a fortune in real estate
[3:45] A medium-term hold is 5-7 years and a long-term is 10-15 years
[5:04] 62 million people visited Central Florida last year
[8:57] You make money on the day you buy the property and not on the day you sell it
[10:49] How to distinguish a good deal from a bad deal
[12:45] Local expert knowledge – using restaurants as an indicator
[14:30] The term, “the bank’s money”, means no skin in the game
[18:45] Paying an 8% interest rate without putting any money down
[21:09] Which banks are financing international investors?
[22:11] What’s so good about Florida?
[24:45] A vacation property that generates income while I’m not using it
[27:05] A 1600 sq. foot home for $260,000 rents for $210 a night
[28:33] Traditional management fees + rental fee + cleaning costs
[35:52] Jason’s team looks for deals with a 35% annual overall return on investment
Direct download: AIPIS2010520arrett_Kenny_Buying_and_Owning_Property_in_Central_Florida.mp3
Category:general -- posted at: 12:00pm EDT
Tue, 22 December 2015
Managing insurance policies for your entire real estate portfolio can be an administrative nightmare if the coverage is provided by multiple companies. Finding a reliable and informative insurance broker who is able to offer nationwide coverage from A level underwriters would eliminate the hassle. Today, Jason gets answers for all of your insurance questions from the brokerage firm of Ross Diversified.
[1:44] The simplicity of one insurance provider for properties nationwide
[2:27] We have had nationwide insurance available for 30 years
[3:24] Nuances to the nationwide real estate market make it a difficult product to offer
[4:42] The underwriting companies which serve our brokerage firm
[5:52] Nationwide programs are generally done on a blanket basis
[8:57] Deductible options from one insurance company
[11:01] Getting the quote to the investor
[13:30] Our company is approved by major financiers
[15:00] Calculating insurance rates based on zip codes
[16:55] Cash value is the number one issue insurance companies have
[20:13] How are land contracts insured?
[22:51] Hard money lenders can place property coverage, but it costs a bit more
[23:38] Loss of Rent insurance
Thu, 17 December 2015
The financial industry has their blinders on with regards to the most historically proven asset class in the world, income property. There is no governing organization that watches over real estate transactions, which is why investing in income property is still a lucrative and simple income producer. Savings vehicles such as One Participant 401Ks and IRA’s can be used as diversification platforms for entrepreneurs already investing in tangible assets such as real estate. These alternative savings avenues offer more flexibility and control compared to investing and trusting your money with large financial service organizations.
[2:30] A plethora of investment options including IRA’s and 401Ks
[4:06] 2 Tax codes: business owner tax code and employee tax code
[6:09] Growing your money, tax deferred
[7:41] Limits of contribution for the Solo-k
[10:23] Diversify via real, tangible assets
[12:39] The IRS is not a big, dumb government organization
[15:05] Average Joe’s do not know how to handle investments
[17:02] Thou shalt maintain control
[19:55] Strategies for long-term investments
[22:37] Hoping and praying should not be part of your investment strategy
[23:20] Jeff was disillusioned by the financial industry and wanted more
[27:16] A CPA is your best bet for financial planning
[28:42] There is no governing body for real estate
[32:54] Follow the money trail
[33:31] 30% of corporate profits in the U.S. come from the financial services industry
[34:42] Contact information and how to get Jeff’s book
Direct download: AIPIS2010320Jeff_Barnes_Self_Directed_Investing_26_Retirement_Planning.mp3
Category:general -- posted at: 10:50am EDT
Tue, 15 December 2015
The last thing you want when building your business is to be personally liable for acquired debt in the event of a down market. Many investors may not be aware of the significant differences of building business credit using personal information such as a Social Security Number versus building business credit without using personal information. Our guest, Ty Crandall is the CEO of Credit Suite, a business which builds business credit for others. He has over 16 years of experience in the finance industry and is a renowned speaker on building business credit and credit scoring.
[2:04] What is business credit used to purchase income properties?
[3:17] Consumer credit is not designed to build a business
[5:42] If you supply your social security to a credit agency you are personally liable
[7:51] The 3 types of credit - Personal, business and bank
[9:43] Using credit to get big by using business credit
[11:23] There are a few basic steps to getting business credit
[12:54] Rent a virtual physical business address
[14:03] Build credibility via websites, phone and address
[15:40] Secure business credit cards with this method
[17:04] Vendor accounts will give you tradelines, credit profile and credit scores
[18:15] Find trade vendors who report to business credit agencies
[19:12] It is still necessary to build credit with a vendor account
[20:45] Every major retailer will give you business credit once you have tradelines established
[23:25] Ty owned a mortgage company during its heyday & the crisis
[25:54] The key to business credit is anonymity between personal and business accounts
[26:39] Business credit reporting agencies most people don’t know about
[28:37] If you follow each step you are able to build business credit
[30:18] Get a step by step guide to building business credit from Ty’s company
[30:56] Business Finance Suite, VIP Partner Package is $3500 but for AIPIS listeners, it’s $2500
Thu, 10 December 2015
Purchasing real estate investment properties can be a long and tedious process. Finding properties, researching the potential investment and calculating the profitability are all initial steps that currently require investors to use multiple databases and take time. Realty Pilot looks to systemize the real estate investment market and connect buyers with sellers with real-time offer information. The platform was built to integrate other systems and databases and give users access to multiple reports from a single interface. The system currently has 10,000 users per month and is set to grow in the near future, as additional data is added.
[1:52] Breaking down Realty Pilot’s structure
[3:05] Back office management tools, which use centralized data
[4:22] The real estate market is changing towards a decrease in cash offers
[6:21] Real-time real estate trends
[9:50] Value versus volume
[11:19] Specific growth markets
[13:27] 10,000 offers per month
[15:36] API connects into multiple systems
[17:01] Additional systems can log in-house data
[18:18] Real estate professionals and homeowners are both notified when an offer is made
[21:10] The value disposition service, available in 2016
[22:48] Two different types of offers: soft and hard
[24:32] Regulations make buying a home, a 3-week process
Tue, 8 December 2015
National bestselling author, W. Bruce Cameron writes from his heart based on his true life experiences. His lighthearted and uplifting books touch our hearts with profound characters, both human and non-human. Jason and Bruce discuss how dogs transform their people with unadulterated, true love, why it’s a great idea to save a dog from a shelter and why we shouldn’t judge people who don’t love dogs.
[1:54] Bruce’s favorite dog joke
[3:02] A Dog’s Purpose
[5:50] What does the dog’s master learn along the journey in this book?
[7:43] The Dogs of Christmas
[10:15] Bruce’s uplifting puppy rescue story
[12:14] People should relish in the love their dog gives them
[13:08] Consider rescuing a dog from a shelter
[14:52] Don’t judge people who don’t like dogs
[16:00] Contact information for Bruce
[16:23] People find the subject matter of the book charming
[17:22] Bruce’s new thriller - A Midnight Plan of the Repo-Man
[19:11] Sample rules from 8 Simple Rules
Direct download: AIPIS2010020Bruce20Cameron20-20A20Dog27s20Purpose.mp3
Category:general -- posted at: 9:48pm EDT
Thu, 3 December 2015
The examples of international real estate investing in this episode will make you run out to invest in U.S. properties. All aspects of the U.S. market seem too good to be true, compared to Australia and France. Financially speaking, 30-year fixed rate mortgages, low-interest rates and loan-to-value ratios are more attractive in the U.S.
Our guest, Matt Jones became a property investor in Australia after reading a single book cover to cover. He used his day job as a mailman to investigate properties for sale, seeing as many as a thousand homes a day. Today, he invests in joint ventures that provide passive income, allowing him to live the life he wants. Through his Property Resource Shop website, he offers DIY kits to get you started on your path to financial freedom.
[2:04] Matt’s job as a “Postie” gave him access to thousands of properties a day
[3:10] Starting with renovations is a good way to get your feet wet in real estate
[5:51] Building relationships and having a network helped early on
[6:52] Using agents is the best way to get deals flowing
[8:11] Joint ventures allow for passive income
[10:21] Remote investing in France is difficult because no one moves
[12:00] A single family home in Brisbane Australia costs about $500,000 dollars
[13:04] Investing in real estate in France must include a capital gains tax
[15:52] The 2-minute deal assessment formula
[19:10] Extracting land if the lot of the original property is above average in size
[20:36] Principal + Interest loans in Australia with adjustable rates
[22:55] Contact Matt at Property Resource Shop
[23:17] Understanding why you would want to start investing in income property
Direct download: AIPIS2009920Matt20Jones20-20From20Mailman20to20Real20Estate20Investor.mp3
Category:general -- posted at: 2:38pm EDT
Tue, 1 December 2015
Owners of unimproved land are often looking to sell their properties, but may not put their parcels on the market. Jill Dewit and Steve Butala of the Land Academy have made the process of connecting buyers and sellers spreadsheet simple. They start with set parameters which are proven profit generators. They then data mine the available properties and share the opportunities through their platforms of e-books, blogs and podcasts. They even have an education program and an online community potential investors can join to get in on the action. If you are interested in investing in tenant free, vacant land visit their website for more information.
[2:29] What is the market for rural, vacant land?
[3:41] A niche choice to flip land
[5:04] The typical land transaction west of the Mississippi
[8:06] Zoning and property and tax assessments on vacant land
[11:58] Physical and legal access laws vary state by state
[13:15] Researching easements and access
[13:46] The 4 A’s of purchasing vacant land
[15:30] The contents of the 2-page letter which entices the seller to consider an offer
[17:45] Using the assessed value to target sellers
[20:31] The parameters of the offer are set in advance
[22:10] We don’t offer to buy vacant land unless we can triple our money overnight
[22:48] Selling the properties to “A” list property buyers
[24:06] How do newbies get started building their lists?
[25:10] Making money on the resale while solving problems
[26:59] Contacting Land Academy
Direct download: AIPIS_098_Jill20Dewitt_26_Steve_Butala_Land_Flipping_with_The_Land_Academy.mp3
Category:general -- posted at: 2:30pm EDT
Thu, 26 November 2015
AIPIS 97 - Creating Assets to Generate Cash Flow through Assisted Living Investments with Gene Guarino
If you are looking for a way to make a profit while positively affecting people’s lives, residential assisted living homes might be right for you. Statistics show that the American population is aging in record numbers. This aging class controls 70% of the assets in America today. The private pay assisted living investment opportunity alleviates the burden of medical care, dealing with government payouts, and provides a service needed in most states. Listen in to find out more.
[2:18] What’s so great about assisted living?
[3:47] Gene’s assisted living program is in a single family home and licensed by the state
[6:45] Liabilities should be covered by an annual umbrella policy
[8:41] None of the medical services are provided under this design
[9:41] The resident's family members know the elder is taken care of
[10:36] Independent living, institutional living and continuous care retirement community
[11:35] Seniors control 70% of the assets in America today
[12:12] Make a higher profit by running a private pay assisted living home
[13:32] Which states have opportunities for residential assisted homes?
[18:54] Understanding the profit behind the evaluations
[20:40] Factor in the time spent for renovations and licensing
[23:13] What do you want out of your real estate investment?
[24:52] The baby boomer demographics and statistics are astounding
[25:41] Get a free report at RALacademy.com and mention Jason’s show
[26:15] Do good and do well
[27:50] The tsunami of adult care is still about 15 years out
Direct download: AIPIS_097_Gene_Guarino20_Assisted_Living_Investments.mp3
Category:general -- posted at: 1:41pm EDT