addressing the needs november 2012 of modern...
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Running The Machine: A Look Inside Josh’s Investing Businesses
the november 2012
MillenniumADDRESSING THE NEEDS OF MODERN INVESTORS IN NE OHIO, ENSURING A
SUCCESSFUL, PROFITABLE FUTURE.
Josh Cantwell, founder and CEO of Millennium Capital
Investments & Sharp Concepts Realty.
INSDIE JOSH’S INVESTING BUSINESS…………………………….…….1
REAL WORLD INVESTING………………...……..…......3
INDUSTRY NEWS & UPDATES…….5
HOT INVESTMENT OPPORTUNITIES…….…….…...………6
HAVE AN OLD 401(K)?...............10
PREFERRED PARTNERS…………....11
FOLLOW JOSH………………………….12
A LOOK INSIDE
There are a lot of moving parts and pieces that happen each day in my real estate invesXng business. There’s so much more happening than just buying or selling a home. Did you know I’m personally involved in five different businesses that make up my enXre organizaXon? Each plays a significant role in my day-‐to-‐day success as a real estate investor and entrepreneur. So I thought that this month I’d give you a behind the scenes peek at what it’s like inside my organizaXon. Let’s start with a big-‐picture overview. I am:
• CEO of Yellow Jacket Proper/es – A for-‐profit real estate investment firm.• Managing Partner of Sharp Concepts Realty – A for-‐fee real estate brokerage office.• Managing Member of D.A.G. Proper/es – A for-‐profit property management and maintenance company.
• Founder of Strategic Real Estate Coach – An informaXon publishing and coaching company.
• Founding Partner of Realeflow, LLC – A top industry program for real estate investment client management (a Client RelaXonship Management system).
• Managing Editor of AcceleratedInvestor.com – A paid monthly newsleger and paid real estate invesXng coaching membership program.
My Business Approach:• I have invested and profited from over 600+ properXes over the past 8 years.• I have invested $2+ million into property renovaXon projects (does not include the purchase price of the property).
• I have personally raised over $10 million of capital to fund my deals.• My brokerage has sold 450+ houses for clients over the past 5 years.• I have coached mentorship students on 10,000+ closed deals.• SREC coaches have closed 5,000+ deals and made over $50 million in profits.
In my business, we list, buy, negoXate, renovate, market, and sell real estate for our own profit or for our clients for a fee. We don’t just talk about what we would do if we were real estate investors, like many so-‐called gurus do. We actually teach what we do:
• We are the leading authority on short sale quick-‐turns. • We pioneered using land trusts, opXon contracts and revocable living trusts to short sale quick-‐turns.
• We pioneered the use of a leger of intent for quick flips, including lease opXons, equity wholesaling and owner financed flips.
Cont’d. next page
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• We buy and sell REOs, and list and sell REOs for clients in my brokerage (one client being Fannie Mae).• I have mulXple streams of income focusing on 6 main revenue pillars:
1. REOs & HUD Homes2. Short Sales3. Rehab & Wholesaling4. Lease OpXons5. Raising Capital6. Investor & Agent MarkeXng for Buyers & Sellers
On top of all that, I have an extensive reach and am able to get my message out to thousands of people each day through one of my many markeXng and communicaXon methods. My businesses have:• An internaXonal email subscriber base of over 50,000 members.• A local buyers list of over 5,000 members.• A local direct mail newsleger subscriber base of over 500 high net-‐worth investors, clients and partners; they lend me money to fund my real estate transacXons.
In order to conXnue providing the best, real-‐world, hands-‐on experience for my coaching and mentorship clients, I am hosing a 3-‐day mastermind event in Las Vegas in early November. This invitaXon-‐only event is open only to my best, most successful real estate invesXng students, many of whom already have their own brokerage offices in operaXon already. I will be there, along with my top coaches, to spend Xme war-‐gaming invesXng successful invesXng strategies, sharing best pracXces and business building strategies. I love these small brainstorming events because they always leave me with some great ideas and approaches to implement in my own business. Spending three days in a room with that much brain power is invaluable!
It Takes A Strong Team To Run The MachineIn the world of real estate, things change fast. That’s why it’s vital to my business that I have a strong team behind me who can work towards our common goals and make things happen. I am fortunate to have surrounded myself with a team of experts that are some of the best at what they do. I surround myself with top-‐level “A Players” in the real estate, finance and Internet markeXng niche. Take a look at the talented team I have in place today to sustain this top-‐notch real estate invesXng organizaXon:
• A full-‐Xme loss miXgaXon and short sale negoXaXon expert.• An Agorney (loan modificaXon specialist).• 12 real estate agents with over 80+ years experience and 700+ deals closed.• A managing broker with 31 years of real estate experience.• A full-‐Xme general construcXon manager, full-‐Xme assistant construcXon manager and construcXon crew of 6.• One of the top direct markeXng implementers around.• An inside sales and appointment setng machine.• 3 mortgage bankers with 52 years experience, having wrigen over $350 million in mortgage loans.• A paid traffic manager running 3 different PPC plauorms.• An in-‐house Craigslist markeXng machine who posts 50+ of our properXes daily.• The top systems and operaXons execuXon person in the industry.• A full-‐Xme videographer and filmmaker.• A social media expert.• An expert Java, PHP and CSS programmer.• A top copywriter in the real estate niche, as recognized by his peers.• An SEO expert who gets me over 10,000 free visitors/month.• A paid traffic staff running 5 plauorms (Commissions Inc., Tiger Leads, Instant Customer, Web Agents SoluXon, Buyers on Fire).
• A successful group of coaches who are some of the tops in the real estate industry.
A Look Inside Cont’d.
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Real World Investing:
FOCUS ON SHARP CONCEPTS REALTY – YELLOW JACKET – D.A.G. – MILLENNIUM CAPITAL. A LOOK INSIDE JOSH’S INVESTING BUSINESS: PROOF THIS STUFF WORKS!
Short Sales Still Have HUGE Profit Potential
When you’re ready to learn how you can earn double-‐digit returns on your money with no hidden or buried fees, call me at 216.233.5448. Don’t wait
to get started… each day delay is taking your money away.
This is a case study of a short sale completed by SREC Head Coach, Derek Walkush. It highlights that short sales are alive and well, but you have to have patience and know how to navigate the waters to make them profitable. The Numbers - Wooster Pike:• Investor purchase of short sale = $35,000• Repairs = $40,000• Lease opXon buyer: $7,500 down payment, $800/mo. rent, $140,000 purchase price
• $7,500 down• $800 x 8 months to qualify = $6,400 • $140,000 purchase Minus • $35,000 purchase, $40,000 repairs = $75,000 investment
Profit aUer 8 months: $78,900 Once the investor purchased the property, there was a lot of work that need to be accomplished, with major repairs needed on the roof and for mold remediaXon (see pics, next page).
I immediately was going to try and find a retail buyer or lease-‐to-‐own candidate to maximize profits. My investor partner agreed to go with the larger payoff and find the lease-‐to-‐own buyer. In thirty days, I found a candidate that was pre-‐approved by a leader we oxen work with in lease-‐to-‐own situaXons.
Our buy is esXmated to be able to make the purchase in eight months.
For Before and After pictures of the Wooster Pike house,
see next page.
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Real World Investing: Before & AfterBefore: (Notice the bad mold problem!) After:
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Industry News & UpdatesLooking For a Foreclosure Deal? Try These Ci/esBusiness Insider magazine recently released a list of the top 10 ciXes in the country to find a deal on a foreclosure house:
ColumbusOH Seattle Tucson Charlotte,
NC
Cape Coral – Ft. Myers, FL
San Francisco Tulsa, OK Pittsburgh Boston Kansas
City
Avg. foreclosure discount
31.88% 34.64 34.72% 37.56% 37.77% 38.05% 38.30% 47.95% 48.58% 51.18%
Avg. sales price $98,223 $212,565 $112,660 $118,808 $102,022 $307,803 $86,725 $73,142 $195,672 $73,257
Jan. 2012 Foreclosure sales
323 988 632 303 606 1,995 211 274 512 353
Percent of all sales 21.32% 33.56% 43.20% 15.85% 27.01% 47.48% 22.79% 15.33% 18.22% 28.72
Home Prices Hit 5 Year HighAlthough the inventory of new homes on the market remained at near record lows last month, home prices rose to their highest level in five years. The current inventory would take 4.5 months to clear, mirroring July’s data. The median price of a home rose by over 11% to $256,000, a point not seen since March 2007. Year over year prices showed an increase of 17%. Together all this signals a slight turnaround in the housing market as a whole, although we’re still not out of the woods. It comes on the heels of an announcement by the Federal Reserve to buy $40 million in mortgage-backed securities per month until the employment outlook improves.
Morality an Issue for Defaul/ng BoomersFor the aging baby boomer population, the decision to strategically default on their homes is one that is steeped in morality. As baby boomers face retirement, those who are struggling with their mortgages are pondering a difficult decision – whether to walk away from their homes before their financial reserves are completely depleted. According to a survey conducted by YouWalkAway.com, older defaulters are more likely to run through their savings and reserves before making the decision to strategically default than younger defaulters. Younger people see strategic default more as a strategic business decision, and struggle less with the morality of the choice. As a result, boomers will deplete their savings, investments and other financial resources before pulling the plug.
3 Steps to Involve Private Investors, Squeeze Out Freddie, FannieAgenXon private real estate investors: The FHFA recently released a 3-‐step plan to lessen the role of Freddie Mac and Fannie Mae in the mortgage industry and shix it to private investors. Since 2008, when Freddie and Fannie were placed in conservatorship by the US Treasury, they have received more than $180 billion in taxpayer support. To date, there is no resoluXon in sight, so the terms of the conservatorship need to change. Together, they guarantee 3 of every 4 mortgages.
1. Build a new infrastructure that allows private investors to parXcipate in the secondary market. This would include “naXonal standards for the mortgage securiXzaXon process“ to be used to develop the mortgage market.
2. Transfer mortgage credit risk from Freddie and Fannie to private investors. Several plans are already in place to see that this happens. One includes a “gradual increase in guarantee fee pricing so the price is closer to the level expected if mortgage credit risk was based on private capital.” Another proposes loss-‐sharing plans to have investors bear part of the credit risk.
3. ConXnue efforts to prevent foreclosures and make mortgage credit available.
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Ready to buy or sell your own
house?
Call us TODAY to speak with an Agent.
Sharp Concepts Realty
440.623.0531
Hot Investment Opportunities4703 W. 197th St., Cleveland 44135 -‐ A steal at $74,900This is your chance to get a great house near Kam’s Corners for a steal! This beauXful ranch has 3 beds, 1 ½ bath and is move in ready – lots of updates throughout including windows, electrical panel; wood floors and lots of spacious living area. Full basement, fenced in yard and agached garage. Located on a quiet street on a cul-‐de-‐sac. Best bargain for miles around!
3332 Marmore, Parma, 44134 -‐ Yours for only $64,900This is by far the best bargain on the street – very well maintained, newly remodeled make this Cape Cod move-‐in ready, just unpack and go! It’s a 3 bed, 1 ½ bath with lots of spacious living area. Priced well below the other houses in the area. Spacious rooms, finished basement is perfect for entertaining, lots of privacy in the fenced-‐in back yard.
10783 Gate Post, Strongsville, 44139 -‐ Luxury at a bargain $179,500You won’t believe this 4 bed, 2 ½ bath ranch in Strongsville – you’ll think it’s too good to be true. And a bargain at $179,500. Many updates throughout including a new kitchen with stainless appliances, freshly painted inside and out, new flooring and light fixtures. Professional landscaping. Huge backyard makes this a great house for family, friends and entertaining. Agached 2 ½ car garage provides tons of extra storage. All you have to do is unpack.
12900 Wil lard, Garfield Hts. , 44125 -‐ Unbelievable at only $35,000You’ll fall in love with this charming 3 bed, 1 bath bungalow in Garfield Hts. Spacious rooms, plus a parXally finished basement provides tons of extra storage and lots of potenXal. Well-‐maintained house with a big backyard and a detached 1-‐car garage. Perfect starter home, move-‐in ready. You have to see it for yourself to believe it!
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Disclosure: This is not a public offering. This is not an offer or invitaXon to sell or a solicitaXon of any offer to purchase any securiXes in the United States or any other jurisdicXon. Any securiXes may only be offered or sold, directly or indirectly, in the state or states in which they have been registered or may be offered under an appropriate exempXon.
Hot Investment Opportunities33485 Lyons Gate, Avon, 44011 -‐ Luxury living at a bargain price $339,000For just $339,000, you can live in the height of luxury in the Red Tail community in Avon. This beauXful 3 bedroom, 2 ½ bath is filled with lots of luxurious touches, wood molding, extra large cabinets, chef’s dream kitchen and roomy bedrooms. Lots of extras make this a very special house. Terrific views of the golf course from virtually every room. Fenced in back paXo. Lots of room and serenity. BeauXful golf course setng makes this a perfect place to call home at the end of a busy day.
4682 W. 130th St., Cleveland, 44135 -‐ Mo/vated seller at $79,000This fixer-‐upper for $79,000 is a must-‐see in Cleveland. Owner will entertain all offers. Formerly a denXst’s office but ready for its new owners. Large, brick corner building is almost 4,000 sq. x. with addiXonal 3-‐bedroom apartment on the second floor. Great open space with refinished wood floors. Tons of parking and addiXonal garage storage.
23080 Mildred, North Olmsted, 44070 -‐ Great value at $99,000One floor living. Great ranch, 3 bed, 2 bath open floor plan, hardwood floors throughout. All appliances stay, including washer and dryer. One side of basement is fully finished, with a separate room that would make a great office. A full bathroom is in the basement. Lots of storage. Located in a very quiet neighborhood. Lease opXon possible so call me today and see it for yourself.
2570 Edgewood, Beachwood, 44122 -‐ Convenience for only $189,900You have to see this beauXful 4 bedroom, 2 ½ bath in Beachwood. $189,900. Conveniently located near shopping, restaurants and the highway, this roomy house is ready for you to move in. Large master bedroom on the second floor, with sitng area and large walk-‐in closet. Eat-‐in kitchen, separate dining room, den on main floor. Fenced-‐in yard and large, finished basement make this a perfect family house.
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Hot Investment Opportunities13215 Hathaway, Garfield Hts., 44125 -‐ Priced to sell at $39,900.Tremendous value for a move-‐in ready 3 bed, 1 bath bungalow home in Garfield Hts. Yours for only $39,900! Well-‐maintained bungalow with full basement and fenced in yard. Move in ready. Huge value. Check it out today, this one is not going to be available for long at this price!
24740 Devoe, Euclid, 44123 -‐ A bargain at $59,900.This seller is seriously moXvated to sell you this house today, so make an offer and get ready to call it home. Completely renovated 4 bedroom bungalow is full of updates and is ready for its new family. Passed Euclid POS. Completely renovated with new HVAC, water tank, electrical, plumbing, concrete drive and more! Waterproofed foundaXon and new roof – energy efficiency at its finest!
9064 Colley Circle, N. Ridgeville, 44039 -‐ Nearly new home for only $216,000This house is virtually brand new and can be yours for only $216,000 in North Ridgeville. It’s a 3 bed, 2 ½ bath ranch in the Waterbury neighborhood. Vaulted ceilings, modern, open floor plan. Lots of neighborhood ameniXes such as pool, playground and clubhouse make it ideal for growing families.
3329 Berkeley, Cleveland Hts., 44118 -‐ A bargain for $29,000Huge bargain Colonial home with 3 beds, 2 baths is ready for you! In great condiXon, beauXful woodwork throughout. Full basement is parXally finished and provides extra living space. Fenced in back yard. Lease opXon a possibility – a steal for $29,000.
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Hot Investment Opportunities
Search the entire Northeast Ohio Market MLS for your next home at
www.freeclevelandhomesearch.com www.sharpconceptsrealty.com
Sharp Concepts Realty440.623.0531
18815 Orchard Hill, Walton Hills, 44146 -‐ Custom luxury for $289,900You have to see this split-‐level, 4 bed, 3 ½ bath in Walton Hills – situated in a beauXful, park-‐like setng on a tree-‐lined street. Lots of room for any sized family -‐ family room, great room, den/study, fireplaces. Custom build with lots of unique features. Walkouts on 3 levels gives easy access to the 1 ½ acres of property. Don’t let this one get away!
13560 Old State, Middlefield, 44046 -‐ Country living for only $149,900 -‐ Just Reduced! You have to see this one to believe it – and at $20,000 off list! It’s a 4 bed, 2 bath ranch in Middlefield, situated on 2 acres of beauXful land. Move in ready! Lots of natural light from the large windows throughout. Lots of recent updates takes away a lot of worries. Very inviXng home. Don’t pass this one up – it won’t last long!
1559 Edgefield, Lyndhurst, 44124 -‐ Newly renovated for $149,900Tons of updates in this 3 bedroom, 1 ½ bath Colonial in Lyndhurst make this a steal at $149,900. New paint, carpet, Xle foyer, bathrooms and newer eat-‐in kitchen. Spacious bedrooms and tons of comfortable living space. Lower level features a great recreaXonal area with laundry and lots of storage. Perfect landscaping and extra shed in back yard. Agached 1-‐car garage is heated, features NatureStone.
2906 Tampa, Cleveland, 44109 -‐ A steal for $58,000For just $58,000 you can claim this 3 bed, 1 bath Colonial in Cleveland as your own. Very well maintained, lots of updates throughout. Lots of natural light. Big backyard, inviXng covered front porch. Convenient access to all parts of town. Call today to see it for yourself.
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Have An Old 401(k)? Call Millennium CapitalAll too oxen, if you have a 401(k) or some other sort of savings, you’re not exactly sure what to do with it, especially if it’s one you have hanging around from an old employer. Hopefully you haven’t lex it behind, at least. But how can you opXmize your money, possibly even earning double-‐digit returns? There are several opXons available, but some are beger than others. I’ll tell you what some of your opXons are, then tell you one soluXon that presents the best, strongest and fastest ROI – invesXng in real estate.
According to a recent survey by Fidelity, almost 1/3 of people who transiXoned jobs didn’t know what to do with their old employee savings plan – 401(k). That’s a startling number, especially when you consider that the 401(k) makes up a significant porXon of reXrement savings for most people. There are generally four opXons available, but I’ll include a fixh that I think is the best choice.
1. Keep the 401(k) in the old employer’s plan – Most plans will let you keep your money where it is, and someXmes that can make sense. This is especially true if your balance is over $5,000. However, it will just sit there. Generally you can’t take a loan against the money or make contribuXons to it. There will be fewer investment opXons and withdrawal limitaXons. You may have to pay administraXve fees and your transacXons will be limited.
2. Roll over the assets into an IRA – Making this transiXon allows your money to grow tax deferred and you have access to abundant investment opXons. You can actually develop a reXrement income strategy where you get a regular income. Note that, axer age 70 ½, you’re going to be required to take regular distribuXons from an IRA, even if you’re sXll acXve in the workforce. If you choose this opXon, request a “trustee-‐to-‐trustee rollover” to ensure that you don’t miss any deadlines and accrue any penalXes.
3. Consolidate an old 401(k) into one with your new employer – Before you do this, check to make sure the new employer’s plan accepts rollovers. You’ll be subject to following the rules of the new plan, which may have limited investment opXons. You’ll once again gain all the benefits and security of having a 401(k) reXrement plan.
4. Cash out – Be aware that if you do decide to cash out your 401(k), there are consequences to face in the form of income tax and a 10% early withdrawal penalty.
5. Invest with Millennium Capital -‐ We pay our investors double-‐digit returns on their investments. We buy houses at substanXal discounts, renovate them and resell them for substanXal profits. We borrow money from private lenders to fund our deals and pay double-‐digit interest rates. To protect everyone, we have a formal closing, a mortgage and note recorded in public record and then quickly resell the property. We secure Xtle insurance to protect all parXes involved. Private funds allow us to purchase at a discount without ever having to rely on banks or mortgage companies for funding.
Some of the benefits of this strategy include:• Each loan is secured by a note and a mortgage held in escrow.• Typically need $80,000-‐$300,000 for quick-‐turn loans.• No bundling, pooling or combining of funds or loans. One lender per deal.• Individual ReXrement Accounts qualify, including Roth’s.• Allows you to self-‐direct your investments.• Broker/Dealer sends money to Xtle agent’s escrow account.• Title agent sends all money back to 3rd Party Administrator.
Because of our relaXonship, I want to tell you about what we do at Millennium Capital Investments and Sharp Concepts Realty. In turn, you’ll come to think of me and my companies as your trusted resource. When you’re ready to start realizing bigger returns on your investments, call me directly at 216.233.5448.
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Millennium Capital Preferred Partners
SHARP CONCEPTS REALTYSell Your Home Today… Fast!
www.sharpconceptsrealty.com Phone: 440.623.0531
ALL STAR LAND TITLEComplete Title & Escrow
Serviceswww.allstarlandtitle.com
Phone: 440.895.2400
EMERALD GLEN TITLEComplete Title & Escrow Services
www.egtaltd.com Phone: [email protected]
THE STREETER LAW GROUPForeclosure Defense & Loan Mod.
Specialistwww.thestreeterlawgroup.com
Phone: [email protected]
HARTFORD LENDING GROUP, LLCMark Kubek, Branch Manager
Phone: 330.869.6344Cell: 216.509.7602
Ph: 216.233.5448Fax: 440.888.7851
Millennium Capital Investments6659 Pearl Road, Suite #202Parma Heights, OH 44130
www.millenniumcapitalinvestments.net
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6659 Pearl Rd., Suite 202Parma Hts., Ohio 44130
Strategic Real Estate Coach main blog: www.strategicrealestatecoach.comTop Real Estate Investor blog: www.toprealestateinvestor.com
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Derek Walkush – Twitter: www.twitter.com/derekwalkushDerek Walkush – LinkedIn: www.linkedin.com/in/DerekWalkush
Sharp Concepts Realty: www.freeclevelandhomesearch.com
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