My Notes from 2020 Real Estate Investing Events

RENATUS, LLC

Not just teaching real estate investing, 

Creating real estate investors

*Results are not typical 

Bob Snyder - Founder

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Real Estate Fundamentals (GA)

Wholesale

Fix and flip

Buy and hold

Money lending

Equity

Cash flow (don’t cash out)

E.  Education - Knowledge 

P.  Properties - Time

I.   Income - Money 

C. Community - relationships 

Tax Deeds (Right of Redemption)

Estate

Property Taxes (Government) & 

Mortgages (Bank)

Foreclosures

Auctions @ Courthouse 1st Tuesday of the Month (10 AM - 4 PM) 

159 counties (13 metro counties) in Georgia

Negotiations 

Option to Rent/Lease to Buy/Own for Tenants

Financing w/ down payment - loan -interest - exponential return on investment

Buyer handles taxes, insurance, debt, etc.

Tax write-offs for employee vs. business owner 

Wealthy people create and manage tax code. 

Velocity banking

Wells Fargo (and other giants banks) are evil

Credit Score Health and Importance

Independent Contracted Marketer

$2,000, $6,000, $8,000, $18,000, & $20,000 educational packages

4 Benefits of Rental Property: appreciation, mortgage reduction, cash flow, tax benefits

Rent to cover principle, interest, tax, insurance

Better to own assets than to purchase products/services

Bill Oehme

Most people earn income to pay expenses and liabilities. Investors earn income to buy assets.

Active, passive, and interest income

Deed = Title, Lien = Debt

Wholesale, fix and flip,

 buy and hold, money lending

Find a property at a discount.

Fund the transaction.

Fix the property.

Acquire a tenant.

Manage the property.

Exit the deal.

Daniel J. Park - Independently Contracted Marketing Affiliate & Real Estate Strategist

Credit for mortgage payments to bank 

Rent payments with lease agreement

Agreements between finders and lenders

Equity increases with market value

Helios website

Renatus IOS

Zillow & Airbnb

Homeowner’s Association Fees

Certified Public Accountant (CPA), Tax Attorney, & Real Estate Attorney 

Weekly study groups and monthly workshops for essentials and advanced

Daily webinars and property tours

Facebook, Zoom, GroupMe

After repair value (ARV)

GOGFO.COM

CREDITNERDS.COM

Be resourceful. 

Financing available with interest

(7 day return policy)

Pros & Cons, Strengths & Weaknesses, Opportunities & Threats

$197 annually for ICM (90 day return policy)

Separate login information for RENATUS

10% fee for RENATUS package funding, 

can’t exceed $5,000

Personal credit vs. business credit

Nationwide offices

Myrenatus.com

Previous investments: Modeling/acting, stock market, drop shipping, personal training, social media, e-commerce, gaming/streaming, SEO, advertising & marketing ***

No guarantees, risk of financial losses

Not licensed professionals

Good representation

Keith Brown - 600+ properties in Atlanta and 

200+ properties in Chicago 

Before March 14th - 2020 Renatus National Conference

Wholesaling & finder’s fee

Real estate license?

Multiple credit companies, scores, and lines

Retirement, life insurance, and private funding

GetFundedOnline.com

640 Credit Score Threshold

Look for Institutions with Good Lending Potential

Email marketing, flyers, roadside signs, etc.

Maximum Withdrawal from 401K = $50K

Relationships in real estate are collaborative, not competitive. 

Velocity Banking Strategies

Average American household earns $58K an y’all and has less than $1K in their savings account for unexpected expenses like medical bills and car repairs. 

Inflation and taxes can actually reduce the value of the money in your savings account. 

Fractional banking - banks can loan up to 10x the amount of money kept in their accounts, and do so at higher interest rates 

Banks, corporations, and the federal government collude against us to manage an empire that runs the world.

Average mortgage cost for an American household is $200,00 paid over 30 years with 6% interest.

Average American has $16.000 in credit card debt.

Banks issue credit cards and will be disabled for lack of utilization.

Long-term savings include retirement accounts and short-term savings include personal choices.

$5K worth of income and $5K worth of expenses = $0 in cash flow

Instead of saving income in a bank account (checking/saving), deposit savings in a consolidated line of credit with a high limit and low interest rate.

21% interest on a credit line is way more affordable than 6% interest on a loan.

Frontend loaded interest means banks don’t care about the foreclosures on the homes of their clients and instead profit early and often on interest (and by contrast, lack of principal). Less than 1% of Americans pay off their mortgages without restructuring/refinancing. 

Salesman and financial institutions emphasize and advertise low monthly payments to divert attention away from the difference in principal and interest payments.

Amortized Loans Never Die

Amortized interest conversion formula: multiply interest rate by two and add a zero

Loans are based on amortized interest, one-way tickets, fixed monthly payments and balances, and have a time estimate (in years). Lines are based on simple interest (calculated on a daily rate), revolving credit, variable minimum payments and balances.

30 days is a bank month &

360 days is a bank year

APR (Annual Percentage Rate) = Interest

Making credit card payments in full and on time will increase one’s limit, score, and offers. It will also decrease one’s interest rate. 

Credit reporting agencies sell the data collected from clients attached to credit card companies. 

Banks capitalize on emergency situations and lack of emergency funds.

All our lives we have been taught, and misled to believe, that credit is dangerous.

Real estate transactions can be funded with credit cards offering 0% interest rates. 

Personal credit lines/scores and business credit lines/scores are based on different histories of credit.

Principal-only payments avoid interest and shorten time spent in debt.

The difference between one’s limit and balance on a credit card serves as a built-in fund for emergency expenses.

Employees in the banking industry aren’t trained to provide lines of credit to pay off debt. They are only trained to offer loans. 

Home Appreciation

Stocks, precious metals, etc. are bought and sold. They are not assets usually owned for long periods of time.

Once one’s monthly cash flow from real estate properties exceeds one’s monthly income, it is beneficial for one to quit their job and rest on passive income. 

Building generational wealth based on outside-the-box thinking

It is difficult to be granted a line of credit for home equity (HELOC) on personally unoccupied residences.

Tax deductions from side businesses can counter hefty income taxes. 

Network: Diana Brito, Ulises, Ivan, Daniel J. Park, Bill Oehme, Jim & Debbie, Keith, Sandra, Devin

Chicago has the largest network of people involved in RENATUS.

“Business” trips are tax deductible. 

It is possible to create a “cash advance” and use a credit card line as an overdraft account by linking it to your open checking account (with a balance of zero).

Monitoring your own credit does not open an inquiry and decrease your credit score. 

Creative Acquisition 

It’s ideal to look for homeowners desperate to make a deal due to pre-foreclosure. 

Making deals “subject to” the the remaining financing on the home is the best way to create wealth by owning as many properties as possible with as little personal investment as necessary. 

Call property owners and offer services as a real estate investor to people who are having trouble financing with the bank and paying their mortgage.

Skip trace and Renatus iOS 

“Subject to” deals involve paying the debt of the existing mortgage (lien), saving property owners from foreclosure, and helping maintain their credit. Investors can then choose to keep the property and rent it or increase the equity and sell it. 

Subprime lending 

85% of homeowners fail to qualify for a lease option. 

Joint venture agreement helps the person who located the deal and the lender for the deal

Loan to Value (LTV) = current equity of property

A half bath includes a sink and toilet, but no bathtub or shower. 

Value of the property - total loan = equity 

Georgia REIA 

Total loan / last sale price = equity 

Keller Williams brokerage firm 

ARV = AVM

Always have a variety of exit strategies prepared.

Wholesaling involves passing along paperwork to another investor. We must be cautious accepting wholesale deals, ensuring access to bank loans 

Bring a deal to a wealthy local investor with a history of success and capital to avoid a hefty personal upfront investment and to incentivize one with a keen eye for profit. 

It is better to acquire a property in pre-foreclosure before it reaches the auction. 

TruePeopleSearch

Leveraging your credit

Kalu Eni & Delesha Hamilton

When someone has to foreclose on their home, they have a 7-year foreclosure status added to their credit report and have trouble acquiring loans for housing and other expenses.

Essence McCray & Alexia Watkins 

If you acquire a property through a short sale, you may not sell it for more than double the cost of the purchase price.

An FHA loan is a mortgage issued by an FHA-approved lender and insured by the Federal Housing Administration (FHA).

Property leads under leadpipes premium to look for pre-foreclosures on Renatus iOS

The lower the LTV (Loan to Value percentage), the higher the equity. 

The 2nd Friday of every month is when the pre-foreclosure list becomes full of properties going to auction the first Tuesday of the next month.

Buying properties at auctions without seeing them can be a very dangerous guessing game. 

There are certain aspects of properties that are “almost always” repaired after purchase. 

%LTV is the amount the property owner still owes on their mortgage loan (100%-LTV%=equity)

When a property has an LTV% above 100%, it is “underwater” and the applicable strategy is short sale. 

An LTV% less than 65% has equity and an LTV% greater than 65% is considered “flat.” A property with an LTV% over 100% is “underwater.” However, all of these properties fall under the umbrella of pre-foreclosures. 

Exit strategies for properties with equity include: wholesale, fix & flip, buy & hold, air bnb, lease option, owner financing

Exit strategies for “flat” properties include: buy & hold, lease option, short term rental, and possibly wholesale

Exit strategies for “underwater” properties include: short sales

Pre-foreclosures are acquired “subject to” the existing mortgage. 

Use TruePeopleSearch.com for skiptracing (finding the contact information of property owners)

We don’t know how accurate all of the details found through Renatus iOS are until we contact the property owner to verify the information.

Google Maps allows one to view the surroundings of a property and the condition of the neighborhood

Zillow, Redfin, Remax, etc.

Only leave voicemails if the auction is approximately a week away.

When making calls, use positive words and try to avoid disrupting their emotions. Also, place the blame on the bank. First impressions are key over the phone. 

Ask property owners about the actions they have taken to attempt to prevent a foreclosure. 

Banks typically provide clients two options: refinancing or loan modification 

In case the bank screws you over, feel free to give me a call or send me an email (hand them your business card). 

After making an offer on a property, it usually takes 30-45 days to close. However, real estate investors are often able to close immediately. 

85% of renters choose not to buy the property for which they have been given a lease option. In that case, the investor takes complete ownership of the property. Also, their down payment is non-refundable. 

Filing bankruptcy is a last resort option to prevent home owners from entering foreclosure.

Rentometer.com

On average, home owners are $7,000-$25,000 behind on their mortgage payments. 

ARV = After Repair Value

Attractive features of a property include: kitchen, bathrooms (master and guest bedroom), plumbing, HVAC, flooring/carpeting, fixtures, roofing, landscaping

A brand new kitchen (including appliances) usually costs $10K. The estimated cost of a brand new master bath is $5K and new guest bath is $3.5K. 

Square footage x $1.75 = cost of exterior paint

Square footage x $1.25 = cost of interior paint

On average, investors handle properties valued between $100K and $250K (properties above this value are tier 3). 

A brand new water heater typically costs $1K.

Average cost for brand new HVAC is $6.5K.

Laminate and hardwood flooring have varying costs. 

Fixtures typically costs $4,000-$5,000.

New roofing roughly costs $10,000.

Landscaping costs around $1.5K.

On average, a 1,500-2,500 sq. ft. property requires $60k-$80k in repairs/renovations. 

Maverick

Heritageproperty.com

Documents regarding civil court proceedings taking place in various counties are available to the public online. These documents include information about tenants attempting to be evicted by landlords. These cases provide unique opportunities to locate distressed landlords who may be interested in selling their property. This method keeps one a step ahead of the game by finding potential properties before they end up listed on a market like Zillow.

Marketing: Facebook, Craigslist, Eventbrite, Meetup, Email, Roadside Signs 

Nationals, Regionals, Leader’s Retreats 

Facebook QR code

Entry and exit strategies are essential. 

Depositing one’s income into a line of credit (rather than a checking account) saves an individual the cost of the minimum monthly payment on a credit card, simply reducing one’s total expenses. This, in combination with transferring one’s overages (difference in income and expenses), quickly reduces debt (by way of velocity banking). 

Plastiq.com

A line of credit is directly attached to a checking account and includes a routing number, overdraft protection, and a debit card. The same cannot be said for a credit card. 

HELOC = Home Equity Line of Credit

Depending on the bank and its rules, one can have direct deposit payments (sources of income) from their checking account automatically transferred to a line of credit. 

Banks can lend 10x the amount a client deposits on their savings account.

Credit isn’t debt unless you add a liability. 

Velocity banking budget and calculator

Subleasing

Short-term rentals and Airbnb 

Probates

SSN# (personal credit) vs. EIN# (business credit)

An MLS (Multiple Listing Service) is created and utilized by real estate brokers that cooperate to share one another’s listings of properties for sale. RenatusIOS combines the listings of 49 MLS’s. 

GoDaddy.com 

Moby automation with RenatusIOS

ROI = Return on Investment 

Deal Summary and Analyzer Report

Direct Sales vs. Multi-Level Marketing

Residual Income of 5 Star Certified Mentors

Mortgage + Property Taxes + Homeowner’s Insurance + HOA Fee

Banks will lend 70%-90% of the appraised value of a property to homeowners seeking a HELOC.

It is so much more difficult to save $3.4 million than it is to invest money in real estate and create positive cash flow month to month. 

Mark J. Kohler is both an accountant and an attorney and he teaches the tax and legal courses. 

5 pillars of wealth

Tax liens/deeds, pre-foreclosures, short-term rentals

The essentials included both real estate education and wealth management information.

Regular employees have about 15 tax deductible options. Business owners have 200+ options and real estate investors have about 430.

Subleasing short-term rentals

Business credit, life insurance, retirement fund, HELOC, GOGFO.com

Estate sales (in-house yard sales) occur when a property owner chooses to downsize, must move to a retirement community, or dies. 

If one can’t afford a property, they can acquire a lead after calculating the ARV (After Repair Value) and assign it to a cash buyer. 

Homesnap.com

Direct mail marketing (use colored envelopes): print in lines to give the appearance of newly handwritten letters for each prospect 

Buying costs, holding costs, selling costs, closing costs, etc.

Appraisal fee

Renter’s insurance

Most people don’t take advantage of lease options.

A balloon payment ensures the finalization of mortgage payments.

Escrow

Wealth generated/accumulated through proper distribution of money

Homelight 

Apartments.com

ApartmentList.com

Rentcafe.com

Realtor.com

StreetEasy

* Line of credit for all transactions *

Eventually, the hard work and education involving real estate will generate more income (and thereby eliminate the need for W-2 employment), freeing up time to pursue other economic ventures, relax, and travel.

Rich Dad: The Business of the 21st Century

Cashflow quadrant: 

EB (security, wealth-building)

SI (independence, financial freedom)

Employee (popular opinion)

Self-employed/small business owner (slave)

Business owner (works for you)

Investor (ideal)

Changing jobs and changing quadrants differ drastically. The former involves substituting some paperwork. Meanwhile the latter involves adopting an entirely new attitude regarding finances. 

Employees value security. Self-employed individuals value self-reliance. Business owners value teams containing individuals offering a variety of skillsets and range of contributions. Investors value the idea of leveraging their money to work for them. 

10 takeaways:

We are given two options when it comes to finances. We control them or we let them control us. Building a successful business starts with adjusting your mindset. 

Jobs are not as secure as we think. Just look at the economic crisis of 2008-2009. The rules have changed. We don’t live in the 20th century anymore. 

The words and actions of the majority shouldn’t manipulate you. An era and its characteristics do not define you or your choices. 

When the going gets tough, the tough get going. And entrepreneurs and aspiring entrepreneurs sure are tough.  

Americans don’t want to work for someone else. They value entrepreneurship, independence, and control over the direction and quality of their lives. 

Raise capital with the help of customers, employees, and investors. 

We ought to learn from someone along the same career path we are trying to follow. 

90% of all new small business fail within the first five years. 

Job security and financial freedom are two VERY different things. 

Instead of working harder to earn income by way of a linear process. Work smarter by building wealth.

Network marketing is an excellent tool that can be utilized to create a stream of passive/residual income. 

It’s easy to find a sense of fulfillment in helping others reach their goals too.

Network marketing and direct sales involve personal word-of-mouth interactions. 

Trading your time for money to earn more income that eventually dissipates will never make one financially free. Recycling income by owning assets that create wealth is the true path to acquiring financial freedom. 

Liabilities have value. Assets generate cash flow.

Capital gains and cash flow are not the same. Rather than profit from a sale, why not earn regular and reliable cash flow?

Network marketing involves building a team of motivated individuals to create wealth. It isn’t so much about selling a product or service.

Scholastic and professional education differs greatly from a real-world financial education. 

If it was easy, everyone would do it.

There are many more tax dedications available for business owners and investors than there are for employees. 

Networking marketing business don’t just provide an opportunity to earn income. They educate people in developing life skills applicable beyond the realm of networking marketing. 

Financial failures are humbling and highlight the need to make serious changes.

Everyone has a winner inside of them. But many of us let that version of ourself lie idle.

Invest your time in people who wish to help you achieve financial freedom and share your same attitudes, beliefs, and values. 

No one lives in isolation, especially in the world of network marketing. 

Don’t waste your time joining the network of someone else. Manufacture your own!

The benefits of networking marketing are exponential, not linear. 

It is difficult for some people to see the value in networking marketing. Instead of opening their eyes, they must open their mind.

Network marketing isn’t about becoming a top salesperson. It is about duplicating and scaling your success tenfold. 

I’m networking marketing the tools of the business present the message. You just point one in the right direction. 

Leaders deliver powerful messages and speak to the souls of people. 

Managers and leaders are not the same. Leaders tell the most extraordinary stories. 

The best of leaders teach others. 

Self-development and the development of others includes mental, emotional, physical, and spiritual aspects. 

Knowledge in regards to earning money isn’t the same as understanding the concept of wealth. 

Wealth is measured by the richness of your life experience today plus the number of days in the future that you have the capacity to continue living at that level of experience. It is not measured in dollars, but rather in time.

A plan to become financially free includes building a business, reinvesting in said business, invest in real estate, and use your income to purchase assets and likewise buy luxuries. 

Instead of thinking with a mindset revolves around “I can’t’ afford.” Think to yourself: “how can I manage to afford it?”

Don’t just dream. Work to achieve your dreams. 

Being broke and being poor are very different.

Network marketing isn’t about making sales. But rather it’s about making connections and building a community of individuals. 

It is important to feel passionate about your work.

Networking marketing business are worth more for quality real-world financial education and personal development, not so much for their amazing products or hefty compensation plan. 

You can’t judge a book by its cover. Likewise, you shouldn’t judge a network marketing company by its website. 

Networking marketing doesn’t follow the same competitive rules of the corporate world. Success for all is founded on cooperation, not competition. 

Clear vision starts with clear expectations 

Create a five-year plan with a blueprint because it requires about 10,000 hours of dedicated work to truly master a skill. Don’t live under the common and popular delusion of get-rich-quick schemes. 

Mistakes are just opportunities to learn invaluable lessons. 

Money doesn’t make one rich. Knowledge/Information (and financial intelligence) does!

Learn to earn more money, protect your money, invest your money, and leverage it.

Network marketing is a zero-sum game and a fantastic example of equal opportunity and non-discriminatory employment. It’s foundation is built on democracy and the sharing of wealth. 

There are both ethical and unethical means by which one can become financially “rich.”

Network marketing seeks to bridge the gap of wealth inequality worldwide. 

Climbing the corporate ladder takes a lot of time and is very tough because individuals compete against one another for raises and promotions. 

Employees do the majority of the work but business owners make most of the money.

Employees almost never inherit business because owners already have successors in place, most of whom are usually family members planning to spread wealth across generations.

Airbnb and Uber/Lyft take few risks and own few liabilities, especially tangible ones.

Earning an income and paying expenses doesn’t result in any net profit. It negates cash flow.