Hunter helps accredited investors invest in real estate primarily through mobile home parks and self-storage facilities. He aims to be diversified as much as possible. He saw opportunities in multiple markets, but they realized there was overlooked opportunities. He recalled watching bond markets back in 2010 and saw that global events were influencing his entire investment portfolio. This is what lead him to real estate investing.
He focuses on specific markets, that have cash-flow, and have good supply-demand equilibrium. His company invests in secondary markets that are often overlooked.
He uses a syndicated model which allows them to pool funds from multiple investors and work with a property manager as well as a sponsor/operator that works directly with the investors. As a passive investor with this arrangement your not dealing with the tenants in any way. This is similar to a privately owned REIT.
They use an operational agreement that outlines how things are managed, as...
Today I interviewed Tom Wheelwright, he is the Founder and CEO of WealthAbility. Tom’s early career was focused on developing training courses teaching CPA’s Tax Law and began his career at Ernst & Whinney, known today as Ernst & Young. Thus, we are both alum, but at different times and different capacities.
Tom, then started his own firm and acquired an accounting firm. His company has grown significantly over the years. Last year Tom and his partner decided they wanted to help more people around the globe, therefore, they decided to build a network of accounting firms to focus on Entrepreneurs and Investors in which Provision is one of the firms in the network.
Tax laws are often not that different from country to country as they are a set of incentives for citizens to do what the government wants, such as provide jobs and/or housing. Wealthability is trying to change the accounting profession; they want to look at taxes as being a good thing and find...
Michael has a background in property management, banking, taxation and real estate. He worked at Wells Fargo overseeing lending for multi-family apartments deals before he realized that there was more money to be made as an owner. Going out on his own had a certain degree of uncertainty after coming from the corporate world. He started out with a couple of small single-family homes in 2010 which he renovated and became a landlord. Then he reconsidered what he was doing and realized he couldn’t scale so he transitioned to apartment deals.
He helped start SPI Advisory, a firm which invests in apartment complexes. They look for value-added multifamily real estate opportunities in Texas. They then work with passive investors to raise the capital via a syndication using a private placement. This way you can own a small percentage of a large apartment complex. The firm has done nearly $500m and has over 300 investors. They only work with accredited investors and have a minimum of...
Bill discusses his experience with warrants as he has been in the brokerage and security business for 35 years. He’s been involved with hundreds of warrants both in obtaining, issuing, exercising and seeing warrants expire worthlessly.
A warrant is a security that typically comes via a private placement. They are usually priced below the market price and have various conditions attached. He outlines the different factors that can affect warrants and how there are often sweeteners to entice investors. A warrant is an option to buy x amount of shares for a certain price within a certain time frame. A warrant typically gives you the right to buy an extra share or a half of a share.
Typically the holder of the warrant must know when the warrant expires. The date is clearly stated on the warrant and most are for two years. The best way of managing warrants is to deposit them with your full-service brokerage. If you have a lot of warrants you will want to keep track of them. He...
Keith talks about how we are the architect of our own lives and why you should figure out what life you want. His first ever purchase was a four-plex where he lived in one unit and rented out the others. He discusses how a mortgage for this is quite easy to obtain.
Being wealthy is a choice which he discovered from the Rich Dad Poor Dad series of books. You need to think differently. Poor people work for their money, and they have nothing left to invest. Middle-class people just look for ways to get their money to work for them, but that doesn’t build wealth. To truly get rich you need to get other people’s money to work for you.
When you provide sound housing to others, you are operating in a way that is ethical. You’re using the bank’s money for the loan, the tenant’s money for an income stream and you get various tax incentives from the government. You end up using other peoples money in three different ways. You can also get a 1031 exchange which...
Gena interviews her friend and mentor Carl Johnston along with Edward Goldkuhl who is an estate attorney. Edward has been an estate planning attorney for twenty years. He talks about how there are opportunities for people to save on taxes and direct their affairs after they pass away. He details how probate works in California.
Recent tax reform in California has brought about a substantial increase of up to twenty million dollars that can be given away tax-free. This is an excellent time to take advantage of trusts and all of the benefits that come with them. It’s likely that this opportunity will not last very long due to government regulation and these changes seem to be unpopular.
Probate is expensive in California, and this is due to specific attorney fees are required by law. This is one reason why trusts are useful because trusts do not die, trusts agreements always specify who inherits the trust.
It’s difficult to find good lawyers; he suggests asking around...
Patrick is the President and CEO of Paradigm Life which he started in 2007. He has a background in economics, financial advising, and marketing. His company has grown and now has an excellent team of financial advisors. He has found running the company to be very rewarding because he has been able to empower people and help them in their financial lives. They work with people of all net worth to improve their financial cash flow. Their goal is financial freedom for their clients, so they prefer not to focus on the idea of retirement.
Society has this belief that debt is bad, however, if you understand economics, then you know that the entire worlds financial system is based on debt. Banks lend out the majority of what they have on deposit. Central banks should not have as much power as they do there are a lot of unintended consequences from that system.
They have a financial product which is a type of insurance policy. You own a part of the insurance company and receive a...
David writes the Morgan Report a newsletter that discusses the resource sector. They specialize in mining equities, and they look at ETF’s and futures. He has a particular focus on silver and gold. They analyze companies to assess their sensitivity to price changes in the underlying commodities.
He talks about how he got into the cellular market in the 1980’s, and while it was a high risk, it also came with high rewards. Likewise, with the newsletter, they try to assess the risks involved in different investment opportunities to suit everyone’s requirements. In this sector, some companies steadily become better and better while many don’t.
He expects to see steady improvement in the precious metals space, and there are several reasons for this, but the biggest one is the debt problem that central banks have created. You can’t get out of debt by creating more debt, and this is a proven recipe for disaster. If the bankers don’t do some sort of...
As an investor, you want to pay close attention to the Bond Market. So I was able to spend time with Marilyn Cohen who manages Envision Capital Management a firm that oversees $400 million in both municipal and corporate bonds.
She has been in the bond market since 1979 and has seen a lot of interest rate cycles. Bonds are still a mystery to most people, while most understand stocks, very few understand bonds. She points out that the bond markets are bigger and more global than the equity markets. In my opinion, the Bond Market allows one to see the future. If one understands Bonds, they Understand Money, if they Understand Money, they understand Taxes. This is the basis of Financial Literacy and why I spend time on this in the Financial Freedom Formula course.
States and counties issue municipal bonds which are how they fund schools and roads. Bondholders are the investors, but taxpayers are ultimately on the hook for what actions government takes. Marilyn also shared the...
Garrett Sutton, who is my Asset Protection Attorney, heads up Corporate Direct. They help protect investors wealth by using different asset protection strategies such as LLC’s, etc.
He says, “Many corporate structures fail to protect because people don’t maintain them by paying the fees and staying on top of filing requirements. You have to maintain these structures, or you become vulnerable.”
They discuss different corporate strategies and how they vary from state to state. Some U.S. states have lower fees and better safeguards. Wyoming is excellent for Real Estate and Nevada is good for “C” corporations.
Insurance is always your first line of defense followed by a suitable corporate structure. Umbrella insurance policies will often provide additional protection from lawsuits. As the predator will get that first before going after the assets.
There are benefits with “C” corps. One example is the Tax Code now is lower and under...
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