- Chain of Title, Hidden Records and Buried Treasure
Investors Welcome! I am excited to have Spence Hinkle talk to us about how we can sometimes increase the value of a piece of land, by hundreds of thousands of dollars, sometimes even millions, just by careful examination of the chain of title. What is a Chain of Title? It Is The Complete List Of All The Transfers Of The Property In Question Going Back To The Original Government Grant Of The Land (usually in the 1800's). How does this raise my property value? Once Certified, Each Additional Lot Is Potentially At Least One Additional Building Site, Usually Worth Many Additional Hundreds Of Thousands Of Dollars Now Legally Separated As Such. Additionally, The Property Now Has Development Potential That Was Previously Unknown Along With Added Flexibility In Financing, Inheritance or Sales. For Example, One 12 Acre Assessor’s Parcel In Los Gatos An Investment Group I Worked With In 2007 bought for $2,500,000 – was Appraised For Over $6,000,000 Six Months Later Just By Acquiring Five Certificates of Compliance Within This Single Assessor’s Parcel. This Parcel Was Zoned 20 Acre Minimums And Could Not Be Subdivided Because Of The Zoning Restrictions. These Legal Lots Of Record, However, Were Exempt From The Minimum Acreage Subdivision & Zoning Standards. Do Zoning & General Plan Minimum Acreage Lot Size Subdivision Restrictions Apply? No, not usually unless your property has been designated a State Resource land of some sort for which it receives a Property Tax Rebate. They do not apply in most cases because I can demonstrate your properties are “Grandfathered In” under existing state subdivision law regardless of minimum lot size or density designations imposed by local zoning ordinances. This is because the Grandfather Clause in The California State Subdivision Map Act of 1974 & 1975 specifically Exempts Existing Legal lots of record from Compliance with The Current Subdivision Standards Enacted Therein as well as Later Amendments thereto and State & Local Regulations such as Minimum Acreage Designations Established by Local Zoning Subsequent to The Original Division of The Lots in Question. How Do You Provide Proof of The Original Legal Subdivision of These Historic Lots? Officially Recorded Transfer Documents, Located at The County Recorder’s Office, contained in the Chain of Title provide Prima Facie Proof of the Transfers of The Lots of Record and The Executed, as well as Officially Recorded Date Thereof, and The Current Grandfather Clause of The 1974 & 1975 Legislation as well as Previous Legislation Effective at The Time of The Original Division, such as The 1893, 1907, 1929, 1937 & 1943 California State Subdivision Map Acts, Establish the Legality of their Division at the time and Current Exemption From Later Passed Subdivision Regulation . Dosen't Development Require Significant Infrastructure Investments? In Many Cases This Process Does Not Because Minimal Development Standards Are Imposed Upon Existing Legal Lots of Record as Opposed To Subdivision Standards for Roads and Infrastructure and Review. In many previous cases, I have been able to take existing lots & make minimal improvements such as septic approval, establish water and maybe a Lot Line Adjustment, Site Improvement Trimming and Opening of Views and Usable Land as well as Minor Road Improvements Resulting in Profits of Millions of Dollars with Minimal Time as well as Up Front, Out of Pocket, Investment and Risk. What is your record of success? - A 100% Success Rate On Over Thirty (30) Certificates of Compliance Issued in Santa Cruz County Over The Last 15 Years. Additionally, Two Appeals were Successful When It Became Necessary. Over the last 30 years, I have Processed Hundreds of Applications for Administrative Certificates of Compliance In Many Counties Throughout The State Without A Single Denial.
- Real Estate Asset Protection Strategies
Investors Welcome! What are the things that can upset even the most carefully crafted retirement plan? This month we are fortunate to have attorney Neil Kripalani advising us on protecting our real estate assets. Coming from a very strong financial background, Neal was actually a Certified Public Accountant before becoming an attorney. He takes a cost conscious approach to advising clients on a practical and appropriate legal strategy. When is it appropriate to "lawyer up?" Can an ounce of prevention prevent a pound of cure? Neil will discuss tools and strategies including: Entities, insurance, trusts, location, well written contracts, avoiding schemes that enrich lawyers, but do little to help. Stay out of court! Come to the meeting! See you there!
- Real Estate Tax Deferral Strategies
Investors Welcome! This month we are fortunate to have Scott Stiller of Xchange Solutions talk to us about tax deferral strategies. He will review the basics of 1031 exchanges and update us on the changes resulting from last years tax overhaul. He will also talk about pros and cons of other tax deferral strategies such as the Delaware Sales Trust, Deferred Sales Trust and possibly others, time and interest permitting Hopefully, it won't still be raining.
- Attracting People Who Pay You Money - for Business & Investing
Investors! We are privileged to have as our speaker this month, Sunil Bhaskaran, mentor, coach, business adviser and marketing guru. His topic is, "Attracting People Who Pay You Money - for Business & Investing." Sunil Bhaskaran should know. He has a community of hundreds of thousands of business owners and professionals across the US and in the UK. Sunil says: Finding people who pay you money is one thing. Attracting people who do that is much easier. How do you attract rather than convince? In this session, you will learn the following: 1. The blind spots most people fall into with their sales and marketing approach. 2. How to avoid these and do much better strategic thinking and actions. 3. One simple model that works well. 4. One simple easy and free step to take to generate momentum for you. Looking forward to seeing you all Tuesday. Please remember to RSVP.
- Group Investing - What Is Your Role?
Investors Welcome! This discussion is especially important to those of you that would like to invest in a local project with a small group of investors. When the best investment projects present themselves, we need to act quickly and decisively. Towards that end, we need a list of potential investors with preferred investment amounts. We also need to define organization and leadership and any expectations of compensation for any role. Lastly, we need a contractor or estimator that can evaluate costs quickly. If that person could be involved as a partner, so much the better. My apologies for the late change in meeting date. It is a crazy holiday month and I am traveling much of the time. Hope you can make it this Thursday. If you can't, please contact me if you are interested in being part of the investment project. Happy Holidays!
- Taxation And Real Estate Investing
Investors Welcome! This month we are privileged to have CPA, tax expert, tax adviser and financial planner Robert (Bob) Mason President and Founder of Coast Financial Services in Santa Cruz. I have been trying to get Bob to talk to our group for years but there always seems to be some tax deadline or the other preventing it. That is why I am really excited he is available this time around. Taxation planning is critical to long term financial success. Listen and learn about tax advantages and tax traps to avoid. If you are an active real estate investor or plan to be one soon, this will be a critical presentation to attend . Remember, it is not how much you make that is most important, it is how much you keep that is really your bottom line. Bob founded Coast financial Services in 2001. Before that he served as Chief Financial Officer of Rainmaker Software for 6 years.
- Borrowing Options for Real Estate Investors
Investors Welcome! This month we have the privilege of having two excellent, seasoned loan consultants present borrowing options that real estate investors need to know. It will be a nuts and bolts evening. Noel McCord of Opes Advisors will join us to present various competitive programs that he can offer, including those with low down payment options. Noel will also cover how to include rental income when qualifying for the loan. Much more! David Savio of US Bank will explain about land loans, construction loans and related topics. What lenders are looking for in a borrower. How loans are structured. Conversion to conventional loan. This is a great opportunity to ask your questions, learn or review lending requirements and open up to new possibilities. As always there will be ample time to network, share wants and needs and meet new contacts.
- Remote Real Estate Investing
Investors Welcome! This week we are privileged to have Dustin Rose of Cash Flow Links as our featured speaker. Dustin has been running several successful real estate businesses around fix and flip, fix and hold and private money lending. He also recently added Real estate investment coaching to his portfolio. I really like Dustin for his down to earth approach. Also very good for people who don't have lots of cash to invest. Some deals you can get in on for as little as $10,000. What better education is there than actually doing a deal? He also offers a variety of types of investments. You can buy very affordable homes that cash flow immediately. You can joint venture with him on new projects or simply loan your money to him at an attractive rate of return. Several members of our group have invested with Dustin over the last few years with good result. Dustin will discuss the nuts and bolts of his operation: How he finds deals. Building a team that operates remotely. How to attract private money. He will also provide some investment oportunities. In Dustin's words My Great Grandparents were into flipping houses. My Grandparents were into buying duplexes and holding them long term. My Dad is a self employed Accountant. Almost every summer I spent days with my Grandparents helping them remodel duplexes. No stranger to hard work, I followed in my families footsteps and became an entrepreneur. At 26 I read the book Rich Dad Poor Dad and It was then that I changed my thought process. I decided that it was time to make a change in my life. I decided to master the concepts of other peoples time and other peoples money. I became a sales rep for a marketing company. I quickly worked my way up the ranks, and by the time I was 29 i was one of the top sales reps in the country. In October of 2006 I semi retired a month before my first son was born from residuals i had built up. At that time I started reading investing books, attending seminars and meeting with every successful Real Estate Investor that i could. In 2007, I bought my first house to flip. It was a foreclosure house that I bid on. It was a 3-bedroom, 1-bath home (1035 sq. ft.) for $62,000. I sold it on a lease option 90 days later. The tenant buyers gave me a down payment of $6,900 and agreed to a purchase price of $129,000. Their mortgage payment was $1,350 a month and included taxes. I bought several properties using this same strategy over the next few months. Things were looking good- and then the CRASH HAPPENED! My tenant buyers didn't want to honor their contracts and the properties turned into rentals. I broke even for about 3 years until things picked up and I was able to sell the homes for profit. I spent those years enjoying the freedom of having enough money coming in every month to cover my expenses. I was able to be there with my boys as they grew up and not miss anything. I became very intrigued about the possibility of a very early retirement and spent time studying and learning the steps for flipping properties, wholesaling properties, raising private funds and finding the markets that were hot and prime for investing at any given time. Over the last 6.5 years I've earned six figures a year investing part time. My companies Cash Flow Links and Sacramento Fix and Flip have performed steadily each year being run mainly by VA's. I continue flipping houses today as well as wholesaling, building a rental portfolio and helping others in their real estate transactions. I also am a Real Estate Investing Coach, run a local Real Estate Meeting and speak on investment radio shows.
- Investor Round Table Discussion
Investor Round Table Discussion Investors Welcome! This month we will not have an outside speaker with a presentation. Some of our best meetings in the past have been when members share their goals, frustrations and real life experiences. Be sure to bring any deals you have to offer, any deals you might be considering and be ready to give and receive feedback. If we have time we may get into a discussion of what type of investor you are and based on that, what types of investments, activities and education might be appropriate. See you there!