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Recap of Our September 2018 ICG Real Estate Investment 1-Day Expo

Crowd shot at ICG Real Estate 1-Day Expo

Starting the day off with hundreds in attendance!

September 8th we had our quarterly ICG 1-Day Expo. It was spectacular.

Market Teams and Lenders

The market teams from relevant U.S. metro areas were present. The property managers were there too as always. Our main brokers and some of the builders (who construct the homes) came to the event as well. What a treat!

We had lenders specializing in both the conventional 30-year fixed rate loans, for investors in all 50 states. Lenders were in attendance who can make loans to people who are over the limit to get the regular (standard loans), as well as issue loans to foreign investors for U.S. rental homes.

I conducted lengthy Q&A sessions and gave the opening keynote speech and a  couple of seminars. At the end of the day, there was a recap of the expo. During the breaks and lunch, I talked with investors, answered questions and enjoyed their company.

Expert Speakers and Hundreds in Attendance

We had a CPA talks about the new tax law and how taxes are optimized for rental home investors. There was an expert who discussed getting college grants for our kids (or grandkids), as many of us still need help (and think we earn too much to qualify). Our last expert spoke on the new structure of reverse mortgages, which has become highly regulated and different than we have previously known. It is useful to understand how all of this works as many are ready to make use of the reverse mortgage, and those of us not quite there learned a lot too.

Hundreds of people were in attendance – one of our best expos to date because it was a wonderful mix of seasoned and brand new investors. We also had many new people who had just been exposed via the PBS Special “Remote Control Retirement Riches with Adiel Gorel.” Also in attendance were veteran ICG investors. The mix was very useful, as the mere questions asked were a great source of learning for everyone. Our veteran investors love talking to people and helping them learn more about the process and to share their experience. It is like a family reunion every quarter! Many investors come to share stories that have been investing for decades – they like to reconnect. The best part is learning how their lives have evolved and to see their dreams coming true for their future.

People All Came Together for the Quarterly ICG 1-Day Expo

The market teams were available in an airy, spacious and enjoyable space all day, to answer any questions and interact with investors new and old. They brought property offering for us to examine.

The day was highly enjoyable! People were from all over the San Francisco Bay Area, and many flew in from other states to attend the event, which was near the San Francisco Airport.

Many of the attendees have already registered to attend the next Quarterly ICG 1-Day Expo on Saturday, December 1,  2018.  We will have a brilliant attorney to discuss Asset Protection, LLCs and other structures, and the correct way to implement it while avoiding common mistakes.  We will also have an expert on credit optimization, so that we can qualify for the best rates possible, using special procedures that will be outlined.  We are still evaluating several exciting experts to choose the third speaker.

In addition to the most relevant market teams, updates and so on, there will be a NEW MARKET introduced on December 1st.

Everyone reading this blog can register for free, just contact us at info@icgre.com and in the subject line write: “Read your blog, please sign me up for free on December 1st!” You can register up to three guests (also for free).

Looking forward to seeing you!

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A Real Life Real Estate Investor Story

As you know we always preach the gospel of buying single-family homes, renting them, financing them with 30-year fixed-rate loans and then just holding them long term. We have discussed the benefits of having a 30-year loan which never keeps up with the cost of living (while everything else does!) Thus your loan gets constantly eroded by inflation (and don’t let anyone tell you the United States will have no or negative inflation in the face of the massive fixed debt it is on the hook for), while the tenant makes the payments for you (of course the RENT does change with inflation which makes it all the sweeter).

In the past month, I got a call from a financial planner handling the affairs of one of my investors. He had purchased nine single-family homes in Phoenix in the mid-’90s. It turns out he did not even live in the United States anymore, hence the financial planner handling his affairs in the U.S. They decided it was time to sell the homes in light of the 2012-2015 run-up in values that Phoenix has experienced in the aftermath of the recession.

Needless to say, his mortgages, while still not completely paid off (they are 30-year loans after all), are essentially as good as paid off after over 20 years. They never kept up with the cost of living and the principal payments whittled them down pretty low – very funny numbers considering the 20+ year inflation which the loan never kept up with.

A few quick CMAs (Comparative Market Analysis) by one of our Phoenix brokers revealed that after selling the nine homes, the investor would NET (after-sales expenses and closing), about $1.7M. Considering he bought the homes for an average of $80K each and using 10% down payments (those were the financing terms back in the mid ’90s), his overall return on investment is not only staggering, but the $1.7M is a real, tangible, powerful enhancement for the rest of his life (he is now in his mid 60’s).

As much as this is a satisfying long term result, I know the investor could have easily bought way more than nine homes. Loans were plentiful back then (no up-to-10 limits) and he had the capacity to easily buy three times as many homes. Nevertheless, even with this investment, he has created a powerful effect on his financial future. Alternatively, he could have just kept the homes and have the net rent from all nine homes contribute to his retirement income.

During our next 1-Day Expo (tomorrow near SFO – see www.icgre.com for details and if you mention this blog entry, you are invited at no cost – just email us at info@icgre.com with the attendees’ names), we will discuss new loans available to investors who own over 10 homes as well. Loans are now also available to foreigners again, and of course, if you own less than 10 homes there are conventional investor loans available to you from most banks.
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What The Volatile Market Means to Real Estate Single Family Home Investors

 

The Dow closed down 588 points last Wednesday as worries of a China Slowdown permeate the business community. Even though there was some recovery in the market on Wednesday the market is still volatile. In looking at this from the prism of a single family home investor; there are pros and cons to consider.

 

On the pro side, it’s already assumed that any interest rate hike by the fed will now be postponed until things feel stable. Since it takes time for a rate hike to translate to mortgage rates, we get more time with our delightfully low mortgages. Of course, since most mortgages have yearly caps, it will take even longer (in some cases much longer) for rates to climb in a significant way.

 

Also on the pro side, people are confused as to where money should operate. The knee-jerk

What The Volatile Market Means to Real Estate Single Family Home Investors
Great advice.

reaction is to have money sit as cash (with close to zero yields). However, when people are scared of stock markets, real estate and (especially) single family homes usually become more interesting as a safe hard asset that produces income, which we tell our clients at ICG as well.

 

People may also feel this is not a bad time to pull money out of stocks and finally buy a home for themselves since they might have been planning to do it anyway – this would not be a bad time to deploy that cash, right into locking in a low rate 30-year fixed loan. This, of course, would boost real estate markets in the single family home sector.

 

On the con side, obviously what is happening is not engendering a lot of overall economic confidence and more doom-and-gloom messages are circulating. This can create an environment where people “hunker down” which will not help the housing market.

 

During our upcoming 1-Day Expo, we have invited Dr.Lawrence A. Souzato to discuss this and other important economic waves now manifesting. Don’t miss it!

 

We will also have Ralph Bunje Jr. talking about reverse and regular 1031 exchanges and how to do them right, and Charles Byrd about using Evernote for business, and total life organization and efficiency. We will have market teams from the best United States markets and lots of Q & A, networking and learning. Anyone mentioning this blog can attend for free with two guests. Just email us at info@icgre.com or call at 415-927-7504. Looking forward to seeing you!

 

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