Money411

P R I VAT E

FALL ISSUE 2015

Here Comes the New Guard

B2R Finance Leads Lending Innovation

The Source for Real Estate Finance from Realty411guide.com

Photograph from left to right: GREGOR WATSON, Chief Revenue Officer; DARREN THOMPSON, Chief Financial Officer;
PAUL BEHM, Chief Information Officer; JASON HOGG, Chief Executive Officer; MATT MALANGA, Chief Marketing
Officer; KATHARINE BRIGGS, Chief Operating Officer; JOHN BEACHAM, Chief Investment Officer

Money411
P R I VAT E

CONTENTS

Celebrate Private Money411 Live

Fuquan Bilal on Raising Capital

Here Comes the New Guard:

B2R Finance Leads Lending Innovation

11 The New Rules of the Fundraising Game

12 Meet Your Creative Finance Experts
14 Disclosing Risk in Funding
17 Meet the Money Minds
28 Benefits of Private Funding
28 Colony American Finance
Wants to Jumpstart Portfolios

PRIVATE MONEY411

Cover: Photograph from Left to Right:

Gregor Watson, Chief Revenue Officer;
Darren Thompson, Chief Financial Officer;
Paul Behm, Chief Information Officer;
Jason Hogg, Chief Executive Officer; Matt
Malanga, Chief Marketing Officer;
Katharine Briggs, Chief Operating Officer;
John Beacham, Chief Investment Officer

CONTACT US:
805.693.1497 or
info@realty411guide.com

Below: Mingle with hundreds of active investors in Los Angeles on September 19, 2015.
Join us to celebrate our new issue. Private
Money411 will be hosting industry gatherings
with a focus on technology and finance. For
more information, see pages 4 and 5.

Be social, look for Realty411

updates on Facebook, Twitter,
LinkedIn, Pinterest, Google+

Photo left: Rebecca Rice with

Rebecca Rice & Associates, pg. 12

Important Disclosures for Our Readers:

The information and presentations provided
herein do not constitute an offer or solicitation to buy or sell securities or real estate.
Please be aware that real estate investing
can be risky. Realty411, the publisher of
Private Money411, is not responsible for any
information provided and/or statistical data
presented, and does not reflect the opinions,
advice or research by us. Readers are 100%
responsible for their due diligence, for all
investment information and for all decisions
with respect to any potential investment or
transaction. 411 recommends readers seek
the advice of a trusted attorney, broker, CPA
and/or financial adviser before investing.

Join Us for a Finance Expo

in Los Angeles, see pg. 8

Celebrate Our Financial

Supplement and Learn
from the Top Leaders of
Finance in CA & NY.
Private Money411 will be hosting
two important events in 2015.
Whether you are based in the West
or East Coast, you will have the
opportunity to network, learn, and
mingle with extraordinary finance
leaders and speakers.
Industry Leaders are Welcomed
as Our Complimentary Guests.
Reserve Your Participation @
805.693.1497 or RSVP by email:
info@realty411guide.com

Private Money411
Finance Conference

WEST - LOS ANGELES - CA

EAST - MANHATTAN - NEW YORK

Real Estate Finance & Technology Expo

Real Estate Finance Expo with REIA NYC

Network with the VIPs of Finance

Join Us in Manhattan - Visit New York City

Saturday, Sept. 19th - 9 am

Saturday, November 7th - 9 am

For information, visit REALTY411guide.com/events 805.693.1497 info@realty411guide.com

California and New York

RAISING CAPITAL

Generate High Yield

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Build Long-Term Wealth

and Private Money

Different Ways
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eople often
think that
raising money
is the most
challenging aspect
of the note business
when in actuality, once
the fundamentals are
established, finding
money is the easiest
part. Raising capital
whether you know or not is heavily influenced by credibility, reputation, and strong marketing. If you want to
keep generating cash flow, never stop raising money,
and never stop marketing.
Getting involved and networking are little things
that make a big difference. There are many ways to
raise capital, from investors to partnerships, and to
make note purchases.
When working with investors, strive to go out of
your way because the way you treat them directly
affects your capital. Your reputation will precede you.
If you pay on time, keep your word, and display responsibility you are showing strong qualities that will
make positive impressions on people and especially
investors. Investors want to invest with the people they
feel they can depend on, trust, and are comfortable
with. Therefore, building strong relationships is critical
and fundamental in the note business. How you market
yourself to other target audiences is also critically important. Sell more than just interest rates and show that
your company, or even you, is exclusive and different.
Asset building isnt just accomplished through single purchases. One can also build collateral by creating
partnerships and forming an LLC. In forming an LLC
with partners, each person can put x amount of dollars
in and then go out and buy notes with the money.
Since note buying is a capital intensive business,
most note buyers start off on a smaller scale before
Continued on pg. 38

Realty411Guide.com

PAGE 6 2015

Private Money411

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THE LEADERS OF FINANCE

With offices nationwide, B2R
Finance is a financial technology company founded to
address the unique needs and
financial goals of single-family
rental property investors. The
company offers a full suite of
lending solutions designed for
investors at all stages of portfolio growth. Current products
include fix and flip financing,
bridge to term loans, portfolio
rental loans for refinancing,
the Entrepreneurial Lending
Program and the Institutional
Lending Program.

COVER

BY TIM HOUGHTEN

the New Guard

B2R Finance Leads Lending Innovation

What The B2R Finance Lending
Lab Is Developing Now

hat is the worlds most innovative real

estate financing laboratory cooking up
next?
B2R Finance CEO Jason Hogg has
been shaking things up at one of the most exciting
lenders weve seen emerge in the new real estate
landscape. This is the innovative mortgage lender
that brought us new residential buy to rent financing, the industrys first multiborrower securitization
and was established by funds managed by Blackstone Tactical Opportunities. Jason shares what
new loan products and tools are being rolled out,
and how investors can stay ahead of the curve.
THE WAYNE GRETZKY OF
MORTGAGE LENDING
A good hockey player plays where the puck is. A
great hockey player plays where the puck is going
to be. Wayne Gretzky
Gretzky developed a formidable reputation on the
ice, by staying ahead of the game. B2R Finance
appears to not only wield the physique of a legendary hockey player, but is driving the game with its
speed skates on, and hitting the puck into the future.
The firm has already been disrupting the mechanics of the industry, and paving the way with
entrepreneurial lending products. But most dont realize how much new technology and creative prob-

Realty411Guide.com

lem solving is set to reshape real estate investment.

We got a peek inside the brain of the finance giant,
and the 411 on whats next in an exclusive interview
with CEO Jason Hogg
DWELL FINANCE: THE NEW DEAL
FOR INVESTORS
B2R Finance just acquired Dwell Finance. The
big move helps B2R dig deeper with an expanding
local market presence and adds new investment
loan products. Jason Hogg says the Dwell Finance
acquisition is significant on three fronts:
1. New Loan Products for Investors
Jason says it augments the suite of products for
customers with fix and flip, and bridge to term lending programs. This includes a single credit line that
facilitates rehabbing and reselling houses, acquiring
multiple vacant properties for conversion to rentals,
and portfolio refinance loans for buy and hold investors.
2. Integrating the Industry
Not only does the Dwell move help connect the
industry, but few realize that it adds to an expanding national footprint with physical regional offices
to optimize service for borrowers. This facilitates
business relationships, including face-to-face time,
which Hogg says is paramount to the organization
and developing new products.
3. New Technology Platform
Dwell provides a simplified front end portal online.
This delivers on what the CEO describes as faster, low friction lending. Its not just about beauty in
web design either. Behind the curtain is a unified

PAGE 9 2015

Private Money411

Here Comes the New Guard, pg. 9

platform which enhances the lender

investor relationship. It even acts as
a mobile dashboard for investors to
interact and upload documents on the
go, as well as monitoring their portfolio performance from anywhere in the
world. This helps further build the relationship by tapping big and small data
to provide users better solutions. This
isnt your creepy Facebook stalkingstyle relationship. It is about getting
to know where you want to go, where
your portfolio is in relation to that, the
DNA of your local market, and how to
connect the dots with great financing.
THE BIG IDEA
While some newer real estate investors were griping about access to
inventory as we turned the corner into
2015, B2R Finances Dwell acquisition
and investments in product development suggest bullishness on the US
markets future. Weve already seen
a significant spike in foreclosure activity and distressed properties being
leaked onto the market in early 2015.

upgraded B2R-Dwell tool chest automates management to make investing

radically easier.
THE LENDING LAB
So where does B2R come up with
these innovative products, and whats
next?
A peek inside the mortgage lenders offices reveals that this company

says he loves listening in to the origination team in action in the Charlotte

office, as well as sitting next to the due
diligence staff clearing loans for funding. It is this connection to the daily mechanical challenges and client that will
certainly help B2R retain an edge.
The Idea Incubator is where team
members get to pose their own suggestions for improving operations and
delivering better solutions. The Lend-

A peek inside the mortgage lenders offices reveals that this company
is nothing like the stuffy, dark bankers corner offices of the past.
This is more like Airbnb and Uber meets mortgage lending.
Jason Hogg told Realty411 that the
firm sees a huge growth opportunity,
worth billions of dollars. In fact, Hogg
says the firm has seen demand for investment property loans nearly double
as of May 2015.
B2R Finances CEO describes the
opportunity as being ideal for professionals like doctors, lawyers, dentists,
and professors looking to achieve
higher yields. He points out the combination of yield and income from
an appreciating asset as a far better
option for these intelligent individual
investors, in addition to professional
investors and investment firms. He
goes on to highlight how the newly

Realty411Guide.com

is nothing like the stuffy, dark bankers

corner offices of the past. This is more
like Airbnb and Uber meets mortgage
lending. In addition to the Dwell Finance acquisition, Jason has headed
up a three-pronged approach to driving
entrepreneurship in mortgage lending
in-house.
This includes:
1. Active listening
2. The Idea Incubator
3. The Lending Lab
There are few, if any other firms where
youll catch executives, including the
CEO, active in the trenches alongside
their frontline team members. Hogg
PAGE 10 2015

ing Lab is where Hogg has assembled a team of experts from a variety
of other industries to pioneer new loan
programs for investors. It is here that
dynamic agile development happens
and new pilot programs are launched
for live testing with clients.
The CEO says that one of the new
game changing product tools coming
out of this lab is harnessing the power
of predicative analytics, and algorithmic approvals. By summer 2015, this
is expected to be revealed in the form
of Instant Pre-Qualification using just
seven fields of information.
The result is to be an even more effiContinued on pg. 38

Private Money411

CAPITAL

The NEW RULES of

the Fundraising Game

By Tim Houghten

he real estate business is buzzing with

talk about fundraising and the SECs
new Regulation A+. But
what is it really? Is it right
for you? Can you test drive
it before taking an accidental detour, and how do you
stay out of jail?

An exclusive interview with

Gene Trowbridge Esq., CCIM
on the New Real Estate
Crowdfunding Landscape

If anyone knows the answers to

these important questions it is Gene
Trowbridge, Esq., CCIM.
Trowbridges California law firm
Trowbridge, Taylor & Sidoti was
responsible for almost 50% of Regulation A real estate offerings filed
between 2008 and 2013. In fact,
Gene Trowbridge has been helping
launch real estate syndications for
21 years.
The media and real estate circles
have be swirling with news of the
SECs recent ruling on Regulation
A+. Reg. A+ is a part of the JOBS
Act. However, Gene warns investors and sponsors not to overlook
the ongoing benefits of 506c and
Regulation A fundraising. Its really
all about finding the right fit for you,
and your investors. Unfortunately,

Realty411Guide.com

the recent storm of press

has often made it sound as
if everyone has the green
light to just go out and raise
money from the crowd for
whatever they like from
burritos to mortgage notes
and apartment buildings.
But this California attorney
suggests you get some
counsel, and do some real
planning and budgeting, at
least if you want to stay
out of jail.
BEFORE YOU RAISE
A DOLLAR
It should go without saying, but talk
to an expert. As in the real estate
industry, many legal firms are rapidly
trying to position themselves as pros
in this arena. If youve ever done a
real estate or note deal, or launched
a business, you already know there is
a giant gap to bridge between theory
and effective execution. When researching and interviewing law firms
Gene recommends looking for flat
fee pricing, and checking references.
An attorney that is upfront in telling
you even the advice and facts you
dont want to hear, rather than just
trying to win you as another client can
be a good sign too.
If you sit down for a consultation
on creating a syndication or fundraising with Gene he says hell walk you
through which is the best legal entity
to use (i.e. an LLC), which regulatory
PAGE 11 2015

laws are easiest for you to navigate

(Reg. D, A, or A+), and can assist
in strategizing the deal structure on
both the front and back end.
STAYING SAFE WHEN RAISING
FUNDS FROM THE STAGE
Many, many fundraisers have gotten
themselves in trouble when publicizing their offerings and investment
opportunities. More often than not
this can be because they simply
dont know better, and didnt seek
comprehensive legal counsel in
advance. Of course, that isnt an
excuse that is going to fly with any
judge. Nor is the fact that everyone
else is doing it.
Trowbridge reminds us that
breaking securities laws is a
serious criminal offense. Many
just dont realize that when they
Continued on pg. 38

Private Money411

Meet Your Creative

Financing Experts:

Rebecca Rice & Jim Beam

By Sandy Fox

ur 5th Annual Los Angeles Real Estate Investors Expo will feature some remarkable
experts. On that day, we will spotlight Rebecca Rice and Jim Beam, industry leaders in a
little-known financial area.
Theyve perfected a way to turn a unique and specific
kind of life insurance policy into a reservoir of money you
can use to simplify your real estate investing. More than
that, the strategy actually compounds and increases the
ROI on your investments.
A Financial Vehicle That
Compounds Your Investments

When you hear from Rice and Beam youll find a financial vehicle beyond what most investors use. Typically
investors turn to cash, mortgages, private lending or a
combination of the above. Each has its own costs and
limitations.
Beam, who started as a real estate investor in Florida
said, We worked awfully hard to make our money. And it
seemed like someone was always standing there at the
end of the day with their hand out to take our money. Closing costs, fees, taxes, interest rates. He felt there had to
be a better way.
His search led him to Rice and her specially constructed
policies. He learned a way that he could:

Learn more with Rebecca Rices book, Multiply Your Wealth: Essential Secrets for Financial
Freedom. Contact her directly at (501) 868-3434
or www.rebeccarice.net - You can connect with
Jim Beam at (239) 591-3781 or email:
jbeam@lifewayadvisors.com

Keep his money safe and private

Borrow money at low cost or net-zero cost
Avoid credit checks and bank approval for loans
Gain tax-free retirement income
Loan his business money and save on taxes
Pay off debt faster
Create an emergency fund that earned interest
four times higher than most banks pay
He now helps other real estate investors learn how to
take advantage of this system. This type of insurance poliContinued on pg. 22

Realty411Guide.com

PAGE 12 2015

Private Money411

REALTY411

EVENTS

SEATTLE, WA - Network in the Northwest

With Real Estate Association of Puget Sound
August 15th - 9 am in Bellevue, Washington

LOS ANGELES - CA$HFLOW Expo West Coast

Network with investors from around the nation!
September 19th - 9 am, Complimentary Book

NAPA VALLEY, CA - CRUSH It Expo 2015

Hosted by BAWB, Bay Area Wealth Builders
October 3rd - 8 am, Its Harvest Time

LAS VEGAS, NV - 2nd Viva Las Vegas Expo

Event hosted with Real Estate Insiders Club
October 24th - 9 am, Play & Learn in Vegas

NEW YORK CITY, NY - CA$HFLOW Expo East

Hosted with REIA NYC - Meet Us in Manhattan
November 7th - 9 am, Focus on Finance

DALLAS, TX - Giving Thanks / Giving Back

Lone Star State Expo with Dennis Henson, AREA
November 21st - 9 am to 5 pm, Charity Expo!

Our expos recently received exposure here:

Were the Northern California leader for loans

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Attracting Private Money

DISCLOSING RISK
An excerpt from The Insiders Guide to Attracting Private
Money: Five Secrets to Fast, Unlimited Capital So You Can
Save Money, Buy More Real Estate, & Build Wealth, by
Mark Hanf, President of Pacific Private Money.

hen you seek to attract capital from private

investors, you need to disclose the risk involved in your proposed project. The reasons
you need to do so are several, but one of
them is that you are asking people to lend you a portion of
their life savings, and they are entitled to know what happens to that money in the event that you exit the picture.
The fifth question we answer in The Five Steps to Money Method, What happens if you disappear? is asking
much more than just What happens if you get hit by a
bus? Disclosing risk is a very important yet often overlooked or ignored piece of the private lending equation.
That is, risk disclosure is often overlooked or ignored
by borrowers. Your prospective private lender, on the other
hand, is absolutely thinking about the risks of investing
with you whether you bring them up or not. And what that
prospective lender wants to hear from you is, What are the
risks, and what are your plans if things go wrong?
You can answer this question by showing your lender
how you are structuring your company and what measures
you are taking to protect that individuals investment. For
example, who on your team is positioned to take over in the
event that something happens to you? If you can address
this question and others like it, you will show your potential
lender that you have thought this through, and that you take
the protection of his or her capital investment very seriously.
The level of detail that you go into when disclosing
risk is up to you (with sound advice from your real estate
attorney). But the most basic risk disclosure essentially boils
down to this message:
YOUR INVESTOR COULD LOSE SOME OR
ALL OF HIS OR HER MONEY.

That is why disclosing risk is such an important factor

when you create your investment opportunity presentation.
Addressing and disclosing risks in your presentation will
make you look professional and thorough, just as the other
important components that we have discussed so far in this
book have done.
Many real estate investors dont want to include
Realty411Guide.com

risk-factor disclosures in their presentations because they are

afraid that they will scare away their prospective private lenders. They worry that if their potential lender understood the
risks, then that person would decide not to invest with them.
However, just sitting back and hoping that everything
goes perfectly is not a strong strategy for success. The truth is
that many real estate entrepreneurs have ended up in lawsuits
because they failed to provide even the most basic disclosure
of potential risks.
You should strongly consider engaging a real estate
attorney to advise you if you plan to raise capital from private
individuals. I am not an attorney, and this does not constitute
legal advice. That being said, I have attended numerous real
estate conferences and seminars on the topic of private capital,
and I have seen many examples of risk disclosures ranging
from simple ones to explanations that were long and complicated. As an example, for my mortgage pool fund, I provide
prospective investors with a memorandum that includes over
twenty pages of risk-factor disclosures.
The fact is that there are basic risks that you should be disclosing to your investors. Those disclosures should be included in any write-up you create for the purpose of raising capital
from private individuals.
You dont disclose these risks to your potential investor to
scare them away. You disclose them so that the investor can
make an informed decision. Risk factors you might discuss

PAGE 15 2015

Continued on pg. 26

Private Money411

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Two of the Best Tactical

Minds in Investment Property
Financing Team Up
By Tim Houghten

The new Bighaus-Chapman

mortgage alliance offers a
new capital partner for real
estate investors navigating
financial purgatory.

STEVE BIGHAUS (IN WHITE)

AND AARON CHAPMAN
(IN BLACK) EXPLAIN THEIR
VIEWS ON FINANCE.

The new merger brings together

two of the best tactical and strategic minds in the mortgage business, with the backing of one of
the largest and fastest-growing
mortgage lenders in the U.S. And
intelligent investors are finding an
interesting match in leveraging the
business partnership that packs a
ton of value.
YOUR GUIDES THROUGH
FINANCIAL PURGATORY
Steve Bighaus, Security National
Mortgage Company Branch Manager, says that the new underwriting inquisition is here to stay. And
it could get worse!
Whether it is new appraisal systems that have been created to
generate additional revenues for
other providers, or demanding a
written, verified, and quality controlled confession of your lifes
deeds, there is a new status quo in
underwriting. While in some ways
it has become easier to qualify for
a loan on the surface, getting from
loan application to closing may
take an army of 300 Spartans guid-

Realty411Guide.com

ing you home with sharp spears and

oversized shields. So while CoreLogic
reports there are still some almost 15
million underwater and under-equitied homes in America, in addition to
a fresh batch of foreclosures in 2015,

PAGE 17 2015

real estate investors still need a

fearless and wise guide to unlock the potential out there, and
optimize financial leverage.
Continued on pg. 19

Private Money411

Its about time we show you

A REAL HERO

Close your loan in as little as 30 days!

Steve Bighaus has over 24 years experience in the mortgage industry. He maintains a
focus on servicing the real-estate investor by offering aggressive financing options and
resources for buyers interested in purchasing or refinancing their investment property.
By concentrating on investment properties and the financing that comes with them,
Steve is recognized nationally as an industry expert. The knowledge that he has enables
him to find financing for people even when they have had difficulty elsewhere.

Contact Steve Bighaus

Senior Loan Officer
206.930.1801

Attention Investors:
Pre-Qualify Today!

steve.bighaus@snmc.com
NMLS#: 112825
This is not a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation,
sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting
guidelines, interest rates, and program guidelines and are subject to change without notice based on applicants eligibility and
market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in
payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant. Security
National Mortgage Co. is an Equal Opportunity Lender.

NMLS# 3116

Two of the Best Tactical Minds, pg. 17

THIS IS WHERE STEVE BIGHAUS AND

AARON CHAPMAN COME IN...
Merging two SNMC branches together these mortgage masters offer a stark contrast, that stand out
on the investment property financing landscape.
They are instantly recognizable, have a very unique
style, and yet perhaps most notable is the fact that
they have been in the mortgage business for longer
than anyone else youll probably ever meet. They
have both been in the financial industry since well
before 2000, which gives them a veritably unrivalled
edge in experience in an industry where it is hard to
meet anyone that started before 2008. But it is often
their mental agility, and refreshing commitment as
long-term business partners to their investor clients
that make them highly-prized assets.
THE MINDS BEHIND THE MONEY
To not just survive this long in the mortgage industry, but thrive and grow, and have investor clients
coming back for dozens of transactions as they grow
their income property portfolios, requires a mind
that plays on a whole other level than the thousands
that have fallen into the abyss.
In fact; there is no question that more real estate
investors would have survived and thrived in the last
couple of decades if they had paid more attention
to how those they chose to do business with kept
themselves sharp. Steve Bighaus, who runs operations in Washington state, says he is religious about
hitting the gym, as well expanding his love of music from the drums to learning the vibraphone, and
experimenting with jazz improvisation. Aaron Chapman who heads up the Mesa, Ariz., office survived a
crushing motorcycle accident in 2008, yet continues
to volunteer with the local Sherriffs Office Volunteer
rescue unit. His specialties include technical-high
angle, off-road rescue & extrication, as well as being a member of their elite six-man helicopter rappel
team.
These are battle-hardened warrior financiers and
tacticians that know how to help investors strategize
to stay ahead of the game, assess and successfully
navigate calculated risks, and win the long race.

Realty411Guide.com

THE VALUE OF THESE CAPITAL PARTNERS

The Bighaus-Chapman mortgage team offers intelligent property investors a specialized team to aid in
optimizing and growing their portfolios, to hit their
individual goals, no matter whether that is having unlimited money to make it rain, or fulfilling philanthropic
aspirations.
Aaron explains: The business is evolving to need specialists. If one hits their head and has complications as
a result, they dont have the family general practitioner
perform brain surgery in his office. Their situation requires a specialist. Not just any specialist, but they want
the best. Investment lending is no different. Why go
to a general lender who offers any kind of program
available when there are specialists in what they need?
Steve Bighaus describes the mortgage company coalition as a holistic service that aids investors in getting
from where they are, to where they want to go, and
incorporating all of their real estate financing from
residences to second homes, to rental properties, and
even commercial properties.
Specifically this financial duo act almost as business
partners or your CFO, only without having to take on
the burden of a giant salary or having to give up a share
of your investment portfolio. They provide assistance
in financial tactics, the heavy lifting and manpower to
get it done, and the capital. Investors just pay the interest and borrowing costs.

Discover more about this dynamic team and the investment property loans offered, visit online at http://
BighausChapman.com.

PAGE 19 2015

Private Money411

CRUSH IT!

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Meet Your Creative Financing Experts, pg. 12

cy is not new. Its has been around for centuries and

is tried and tested. Currently banks, businesses, and
high net worth individuals use it to preserve and grow
their money. But Rice and Beam offer a unique structure that makes it a powerful tool for even the small
real estate investor.
SHE BROKE THE GLASS CEILING
Rice discovered Nelson Nashs book, Becoming
Your Own Banker, over 25 years ago. She recognized
the revolutionary technique and became a protg of
Nash, building on his philosophy with concrete action
plans.
It became her passion to help as many people as
possible. I help people see how money really works in
the economy. Its often not the way you think it does,
Rice says. I love to show my clients how to reduce
their debt in an extremely short period of time faster
than they ever thought possible.
Through the years shes structured Living Benefit policies for people from 21 to 93 years old. Each
is unique, Rice says. Ive helped people profit who
could only start with $100 a month. And Ive worked
with people who wanted to contribute a million dollars
a year. Whatever your income or investment goals,
you can use this to take control of your money and
grow it faster and safer.
Rices passion and dedication to her clients made
her extremely successful. She became the first woman
to be the top-performing agent at Mutual Trust. Then
she went on to break the glass ceiling at Massachusetts Mutual as the first woman in its 170-year history
to become the top life producer. She is also one of
only three policy agents endorsed by the Palm Beach

Letter, a financial newsletter.

Because she has written thousands of policies
and uses many of them herself she knows every
nuance of how to structure it to benefit you.
YOU NEED AN EXPERT
On the owners side, a policy looks deceptively simple and is easy to use. But the creative side
takes an act of genius to give you all the benefits and
advantages necessary to use it effectively in your
business and investing.
Rice always learns what her clients goals are.
Then she tailors a Living Benefits policy specifically
to meet those goals. Some want a pool of money to
run their business. Others need free access to money
for real estate investing or hard money lending. And
some have their top goal to safeguard their wealth
and transfer it to the next generation.
Its possible to accomplish all those goals without invading lifestyle money, Rice says. Lifestyle
money is what you live on after paying your bills and
Uncle Sam. Rices brilliance is that she frees up money for you to invest from other sources. Often its from
the debt payments you are already making.
PUTTING YOUR
POLICY TO WORK
FOR YOU
The simplest way to use your Living Benefits policy is with hard money lending, Beam says. There
are hundreds and hundreds of folks out there who are
in need of hard money lending. Beam works through
organizations that send out leads for people who
want to borrow the amount of money you have to invest whether thats $10,000 or $150,000 or more.
And the Living Benefits policy creates a vehicle
to amplify the investment. You borrow against your
policy at 5% and you put it out on the street to go to
work at 10% or 12% plus points, Beam says. But
youre still earning 5% on those same dollars within in
your policy! Wow, what a platform to work from!
Beams strength is that he can guide real estate
investors in the best ways to take advantage of this
platform for their specific goals.
There are a number of ways to take advantage
of the policy. One of their clients buys HUD houses to
rehab and rent.
Although her Living Benefits policy is only a few
years old, shes been able to use money from her
policy to cut costs and increase returns.
Used for a down payment for a conventional loan
Continued on pg. 36

Realty411Guide.com

PAGE 22 2015

Private Money411

Wanna be a big boy?

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Attracting Private Money, Disclosing Risk, pg. 15

could include things such as:

changes in the real estate market
cash flow problems
conflicts of interest
an unproven real estate investing
company (if youve never done a deal
before)
CHANGES IN THE REAL
ESTATE MARKET
Your opportunity presentation is
based on a set of assumptions. Those
assumptions include things like market demand, potential market appreciation, and an estimate of the increase
in value as a result of your planned
improvements.

guarantee that the results you predict

will be realized.
CASH FLOW PROBLEMS
You have proposed a budget and a
spreadsheet to your lender that shows
your sources and uses of funds. But
what if you come across significant
and unexpected cost increases? Do
you have the ability to cover them?
Typically, your money partner will not
be under any obligation to fund additional costs beyond the agreed-upon
budget unless you bring this up in
your written agreement beforehand. If
the project stops as a result of running
out of cash, you could be faced with
mounting costs and declining profits
as time goes on.

However, the real estate market is

subject to cycles that can affect the
CONFLICTS OF INTEREST
marketability, pricing, and days-onmarket estimate of your project. Real
Are you planning to dedicate 100 perestate can and does decline in value as
cent of your time to this one project
a result of certain market forces. Riswith your prospective money partner?
ing interest rates, job growth, joblessOr do you leader
have other for
projects
or work
ness,Were
new inventory,
and
other
factors
the Northern California
loans
obligations that might be construed as
can contribute to a drop in demand
real
estate
conflicts of interest? You can make
and to
prices
for real
estate ininvestors.
a given
a statement in your presentation that
market. Your prediction of how well
reliable,
and
never
change
gives
yourwe
lender
notice that,
while
yourWere
proposed fast,
project were
will do should
you are dedicated to the success of
pricing
on you
mid-stream.
be based
on a careful
review
of local
this endeavor, you are nonetheless
market conditions, but you cannot
free to pursue other business ventures
or obligations, as well.
UNPROVEN REAL ESTATE
INVESTING COMPANY
If you are new to real estate investing
or if you have formed a new company to pursue real estate investments,
you may not have a track record of
success. In that case, your business
model is unproven.
Changes in the market, cash flow
problems, conflicts of interest, and an
unproven
realtoestate
Learn
how
ndcompany are just
a
few
examples
of the risks that you
your own private
may want to disclose to your lender.
lenders! Get your
There are many others that you can

copy of our new

book by going to
PAGE 26 2015


AttractingPrivateMoneyBook.com

identify and include in your proposal to give your investor a complete

picture of what the project will entail.
A qualified real estate attorney is an
integral component to your team and
should be consulted to assist you in
drafting an appropriate disclosure
statement.
I have been telling you to always
put the best interests of your private
lender first, but the fact of the matter
is that a primary purpose of your disclosure statement is to protect you in
case your lender chooses to sue you.
If you can demonstrate that you disclosed material risks to your private
lender before that individual invested
with you, should things not work out
as planned, you will be much better
protected in a court of law.
Excerpted from the book The Insiders Guide to Attracting Private
Money by Mark Hanf, available at
www.AttractingPrivateMoneyBook.
com. Mark is president of Pacific Private Money Inc., a California-based
hard money lender who has raised
over $200 million in private capital
since 2009.
Private Money411

Realty411
EXCLUSIVE
MEDIA
SPONSOR

The Benefits of Using

a Private Lender

etting started as a new

Real Estate Investor or
to bring your existing
business to the next
level of success will
generally require investment capital.
More and more investors are taking
advantage of using private lenders
to achieve their business goals. The
advantages of using a Private Lender
over conventional lenders or Hard
Money lenders can be summarized as
follows:
You may be able to agree to terms
more suitable to you
You may be able to finance 100%
of the project plus expenses (many tra-

I do get some push-back

from people when I suggest
that they approach family and
friends for investment capital because some feel uneasy
asking them for money and the
possible implications if things
dont work out exactly to plan. Just keep
this in mind, you are asking them to
participate in a business opportunity, not
a hand out. Furthermore, many of these
people are already taking some form of
investment risk; so why not in you?

ditional banks and lenders will require

you to have some skin in the game)
Less underwriting scrutiny of you
and the particular project
Quicker response
Avoid the oversight that many
lenders are now putting in place
during the life cycle of the project
Private lenders may not require
you to have any documented experi-

Realty411Guide.com

ence
Finding Your
Private Lenders
Once you have
decided that using
a private lender
is the right and
perhaps the only
possible direction
for you to take, it
is now time to explore your opportunities of locating
people who may
be interested in
funding your projects. Generally, a great
place to start looking is among your
personal and business circle of
influence. This may include the
following:
Family
Friends
Co-workers
Acquaintances
Local real estate groups

Keep it Legal and Get it

Down on Paper
Just because using a private lender
may be a simpler and less formal pro

PAGE 28 2015

By Carl Schiovone
cess than what you would
typically experience with
either a Hard Money
lender or conventional
lender, this does not
mean you will forgo all
of the required documents and due diligence
that will protect both you
and your private lenders.
Make sure to discuss the
terms and conditions of
the private loan with your
attorney and have them
prepare all of the necessary documents.
It is always advisable to encourage your
lender to also have their attorney review
the documents.
Positioning Yourself as a
Solid Borrower
Even if you personally know the
people who will be providing the capital
to fund your project, this does not take
you off the hook from properly preparing yourself as a reputable borrower.
There are some characteristics that your
lenders will be expecting from you and
include the following:
Knowledge of the Business
Even as a new investor, it will be
critical for you to have the basic skill set
in order to effectively analyze opportunities that may come your way. In the
excitement of the hunt for your project,
you will need to know when it is time to
move forward or pass on an opportunity.
In fact, as part of your discussions
with your lender, you should illustrate why the project is a solid deal by
sharing the assumptions and results you

Private Money411

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I cant tell you how many times I have seen this play out with
my students. Properly documenting your past performance in your
Credibility Report will go a long way in securing new lenders.

have made. In addition, you should

pro-actively identify the barriers and
risks you may face and how you plan
on mitigating them.
Remember, by identifying this
upfront you will go a long way. Keep
in mind that most lenders (or their attorney) will inquire about risks anyway,
and it looks much better coming from
you without being asked. As part of
your Business Plan, you should
have identified all skill set
shortfalls you may have
and include a specific
action plan on overcoming the deficiency. If you are a new
investor with no or
limited experience,
it is advisable to have
someone who can
shadow your decisions
and path and guide you
along the way.
As a Performance Coach, all
too often I see new investors jumping
into their first project without the proper
skill foundation and many experience
some challenges that could have been
prevented.
Transparency
If there is one thing that can ruin any
business relationship is holding back information that is critical to your lender.
With real estate investing, things may
not always go to plan.
However, what is important here is
how and when you communicate when
there are challenges. Always share
information that affects your lenders
as soon as possible and during that
discussion, communicate possible ways
to get back on track and avoid a future
re-occurrence.
Credibility
In order for your business to grow and
Realty411Guide.com

continue to have your lenders coming

back for more opportunities, it will be
critical to leverage off of the success of
prior projects. Once they see what you
can do and have performed as planned,
you will find that the people around you
will be literally throwing more money
your way. In addition, they will be ask

ing if they can bring their family and

friends along as well. Talk about free
marketing, it doesnt get any better than
that!
I cant tell you how many times
I have seen this play out with my
Students. Properly documenting your
past performance in your Credibility
Report will go a long way in securing
new lenders. As a great way to demonstrate your performance is to invite
your lenders and potential new lenders
to your projects both before you get
started with the project and after it is
completed.
During this time you can share with
them both the initial expectations and
how the final results compared. Just
think how powerful this can be. During
this exchange, if the specific performance you were planning was not comPAGE 30 2015

pletely achieved, you should elaborate

on the root cause. Evaluating lessons
learned can be a great way to mitigating
future errors on the next project.
Have an Exit
Strategy
As part of your overall project or
business plan, you may need to consider your exit strategy from the private
lender in advance of moving forward
with them. There are generally a
few options to consider when
exiting private money that
include:
Selling the property
upon completion of a renovation, the lender will
be paid from the proceeds
(this is common with a
Rehab and Flip project)
Refinance the property
with a cash out conventional
mortgage (this is very common on
a Hold to Rent property)
Repaying the loan from the sale of
other assets or investment sources
In conclusion, building a solid base
of reliable private lenders will help set
the stage for you to respond very quickly to the opportunities presented, This
can clearly be the path for you to scale
the business as large as you want! Once
the people in your network actually see
that you have the bandwidth to move
forward they will bring you even more
opportunities.
Carl Schiovone is a Performance Coach
with over 33 years of experience and is
President of Carl Schiovone & Associates Real Estate Coaching Inc. In addition Carl is the President of East Coast
Real Estate Investors Association. For
information, visit http://EastCoastREIA.
net or http://CarlSchiovone.com

Private Money411

FINANCE

Colony American Finance Wants

to Jumpstart Your SFR Portfolio
D

o you think that you might have missed the boat to

invest in single-family rental homes? The answer is
a resounding NO!
We all remember 2005-2007 when it seemed that
investors couldnt make a mistake in the residential fix
and flip market. Investors with little experience were
able to outbid the competition, slap some minor paint
and carpet improvements and then sell their properties
for incredible returns. But then the bubble burst and
many investors were left with homes that couldnt be
sold or in some cases, even given away. They had two
choices: Give up the properties through foreclosure or
become a landlord.
RENTAL DEMAND
OUTPACES EXPECTATIONS
Statistics show that nearly 35% of Americans now
rent instead of own. Drill further into the statistics and
youll find that 35% of renters choose single-family
homes and 19% choose duplexes, triplexes or fourplexes. With these two categories encompassing 54% of
all rental choices, it makes perfect sense that investors
are looking to 1-4 unit properties instead of owning
larger multi-family apartment-style buildings; 1-4 unit
properties have a lower price point, the ownership risk
is spread out among multiple structures and the overall
expense ratio is lower. Renters in single family housing
tend to pay their own utilities, maintain the landscaping
themselves and have access to municipal water/sewer/garbage at a much lower rate than through private
service.
Rental demand is projected to change significantly
over the next ten years, primarily driven by the changing
nature of the household. Baby boomers are moving in
with their children or into senior housing and millennials
are favoring renting over owning because of its flexibility and lower commitment level. Being well versed in
the changing market is the key to having a profitable
portfolio.
Also noteworthy is that there are an estimated 14
million rental homes owned by non-institutional investors in the United States most of which are owned free
and clear. Quick math: Using 14 million rental homes
at an average value of $100,000 each, thats potentially $1.4 trillion in new loans that can be originated and
re-invested into the market.
Colony American Finance has multiple financing opRealty411Guide.com

By Jennifer Goralski, Senior Vice President Originations

tions available so you can access your portfolios equity

and quickly put it to work to buy additional properties,
invest in your childrens education, or simply replenish
your cash position.
KNOWLEDGE IS POWER
The savviest investor will do three things: research,
research and more research. Mortgage brokers and
real estate brokers have invaluable information such
as market trends and vacancy rates as well as access
to properties that might not be listed for sale. But its
significantly more critical for investors to have access to
capital: Both liquid cash and innovative financing.
No longer is the SFR rental market monopolized by
private money loans with steep interest rates and fees
or the more traditional Fannie/Freddie product that caps
out at 5-10 properties. Colony American Finance provides non-recourse term loans for stabilized portfolios
and fix and flip lines of credit for acquisition funding.
FIX/FLIP LINES OF CREDIT
If you want to grow your portfolio or perhaps dont yet
own a rental portfolio, a line of credit is definitely the
right choice. Colony American Finance offers two different line of credit options depending on investor experience and short-term/long-term goals.
Our Entrepreneurial Line of Credit is a non-revolving,
declining line designed for the investor who does less

PAGE 31 2015

Continued on pg. 34

Private Money411

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Jumpstart Your SFR Portfolio, pg. 31

The NEW RULES of the Fundraising Game, pg. 11

than 20 fix/flip projects per year and only within the 1-4
unit residential arena. Line amounts start at $500,000
and go upwards of $5,000,000. Borrowers have 12
months to utilize the proceeds and 12 months to pay
back each draw. This loan has no prepayment penalties.
For the more active investor, our Institutional Line
of Credit offers additional flexibility as it allows for both
residential 1-4 unit properties and commercial properties up to 20 units. The Institutional Line of Credit
is also a revolving line, meaning you can access the
funds multiple times. Line amounts start at $3,000,000
and can go as high as $50,000,000. Borrowers have
12 months to access the proceeds and typically 9
months to repay each draw. This is a non-recourse
loan and has no prepayment penalties.
Also important to note is that you can utilize either
the Entrepreneurial or Institutional Line of Credit to
build your own personal rental portfolio. Once you
have completed the renovations on your fix/flip properties, you can look to refinance your holdings into one of
Colony American Finances term loans.
NON-RECOURSE TERM LOAN OPTIONS
If your SFR rental portfolio has five or more properties, Colony American Finance is your option for
attractive financing options. Our loans are underwritten
like a commercial loan, which means no more debt-toincome ratios hurting you when qualifying. Rather, your
portfolio is underwritten on the assets and the cash
flow generated from those assets. Plus, because we
lend across the U.S., a single term loan can be made
on portfolios with holdings in multiple states.
Our rates are competitive with traditional FNMA
loans, are amortized over 30 years and can be fixed for
five or ten years. Our loan amounts start at $500,000
and can go up to $100 million and almost all term
loans are available on a non-recourse basis. Important
too, is that borrowers can have multiple tranches of
loans to facilitate estate planning or property management issues.
REGIONAL STRATEGIES
Auction.com recently released data that showed
investors are favoring buy-and-hold strategies over fix/
flip on a nationwide basis, but that investor intent varies
between online/offline investors, regions, and property
prices. Midwesterners and Southerners are more likely
to buy and hold whereas those in the Northeast are
more likely to fix/flip. Investors in the western states
are evenly split between fix/flip and buy/hold strategies.

GENES QUICK TIPS

FOR INVESTORS
TO STAY SAFE

hese presentations
can be extremely
attractive for end investors. So far the majority
of crowdfunding projects
that have been funded
seem to be working
out. But not all will. So how can you stay safe when
investing in these opportunities?
Be thorough in due diligence upfront.
Understand what pools of properties or notes include.
Look at the track record of promoters.
Check them out online, and watch out for SEC
Cease and Desist orders.
Pick up the phone and talk to sponsors if you
get nervous.

are dealing in mortgage notes, and pools of properties

in different jurisdictions, that they can unknowingly be
trading securities. If you think its a joke go ask Bernie
Madoff who is serving a 150 year prison sentence. And
the truth is that this life sentence is nothing compared to
the other consequences he is dealing with.
If you are working under a Reg. A filing you need a
permit. Under a Reg. D Rule 506c filing you need to
stick to raising money from accredited investors. And
even under Reg. A+ you need to get approval before
taking in money from investors. And Gene says that
youd be surprised at how many SEC investigators are
patrolling investor groups, workshops, the internet, and
magazines to look for those violating advertising and
fundraising laws.
HERES THE HACK
While it is important to stay on the right side of the
law, invest in legal counsel, allow sufficient budgeting for
marketing and promoting, and to be very careful about
staying within the guidelines, there is no question that
Regulation A+ does appear to be a huge win for investors, fund operators, and the public. In fact; Trowbridge
sees the broker-dealer community embracing Reg. A+
in a big way due to the ability to raise up to $50M a
year in mini-IPOs, and favorable auditing rules. The
impact is likely to include more cash in the economy,
more competitive offerings for investors, and attractive
returns.
For those that are concerned about the paperwork,
Continued on pg. 38

Continued on pg. 36
Realty411Guide.com

PAGE 34 2015

Private Money411

LONE STAR
Real Estate Expo
Arlington - Nov. 21
Give Thanks, Give Back

Successful Investors from Around the

Country Unite for ONE DAY in Texas!
NETWORK, LEARN, GROW
Thank you for your interest in the
Lone Star Real Estate Investors
Expo. Since 2006, the Realty411
publishers have owned multifamily
rentals in Texas, their mission with
this Complimentary Real Estate
Investors Expo is to provide those
who are interested in learning about
real estate the opportunity to increase their knowledge
and contacts in person. Our VIP tickets featuring reserved
seating are available for only $49. Plus, in the spirit of
Thanksgiving, net ticket proceeds will be donated to the
local Salvation Army. Top industry speakers joining us
from throughout the country include: Dennis Henson, John
Jackson, Dolf de Roos Brad Sumrok, Arnie Abramson,
Tom Wilson, Tim Herriage, Merrill Chandler, Randy
Hughes, Anthony Patrick, Reggie Brooks, Pat James,
Geoge Antone, plus many more soon to be announced.

FREE TICKETS: 805.693.1497

Why Dallas / Ft. Worth

of the Best Metros in t
Dolf de Roos

Your Host:
Dennis Henson

by Tom Wilson

Are Abramson
there markets that
Arnie
dont recommend being a
have weathered the downreal estate investorunturn well, are superior in
less you have a well-demany of the parameters
fined strategy, quantitative
above, and have had relagoals and are dedicated to go by
tively calmer waters durthe numbers and not by unsuping these past few tumulus
Tom
ported advice or emotions.
years?
My engineering training and
Indeed, my experience
Wilson
30 years of experience managin more than 1800 unit
Tom Wilson
ing high tech profit centers in
transactions over 35 years
Silicon Valley taught me how to analyze for has revealed that Dallas / Fort Worth is one
the bestJohn
returnJackson
on investment in any mar- of the best real estate investment markets
ket.
in the United States; that is why I chose
Today, the principles of analysis remain it for most of my personal portfolio long
the same. Anyone can do it, however, one term holdings.
needs to be very disciplined and educated The strengths of Dallas / Ft. Worth are:
about the submarkets and products, or ride Business and financial capital of the
the coattails of someone who is.
South.
Tim
The primary parameters for selecting
theHerriage
The highest rent per invested dollar for a
best investment markets are:
major economic center in the United States,
Hosted
& Produced
Rent to purchase price ratio
and therefore,
the highestby
cashAREA,
flow
Population
growth
and
inward
migration
One
of
the
lowest
risk
and
safest
harbors
Brad Sumrok
Arlington Real Estate Association
Employment growth and business climate
in the United States for real estate
Housing affordability
Lowest decline housing price from peak;
Location
the only US single digit depreciation metCost of living
ro
Rental market
Fourth largest and one of the fastest growCurrent and projected market conditions
ing MSAs (Metropolitan Statistical Area)
Now that speculative investing for fast in the United States. Projected to double
profit has gone the way of the last super- population to 12 million by 2030
model, the wise investor is focused on cash Broad-based economy that has had double

The Lone Star Real Estate Expo Raises Awareness and Donations for the Salvation Army.

To Register or Learn More Visit http://Realty411guide.com/events

Tim Rood to Deliver

Keynote at Private
Lending Conference

he American Association of Private Lenders

(AAPL) announced that Tim Rood will deliver the keynote address at the 2015 American Association of Private Lenders Annual
Conference. The Conference will
be held November 8-10, in Las
Vegas, Nevada and features over
25 presentations, panels and workshops addressing a broad spectrum
of personal real estate finance
topics.
Rood is Chairman of The Collingwood Group, which
he co-founded in 2009. Rood was co-founder and
managing director of the firms predecessor company, Capital Financial Solutions. Earlier he was Vice
President of First American, where he successfully led
the companys professional services group tasked with
creating business solutions for the top ten lenders in the
country. Rood served as Director and Principal of Fannie Maes eBusiness Division. He has more than two
decades of mortgage industry experience which has
made him a highly sought after speaker and contributor
to a variety of national
media outlets, including;
CNBC, Bloomberg Television, FOX Business
News, Washington Post,
New York Times, Wall
Street Journal, and the
American Banker.
AAPLs Annual Conference is expected to attract a
large contingent of real estate professionals including;
private lenders, residential and commercial investors,
investment firms, note buyer and brokers, CPAs, IRA
Servicing Companies, as well as other service advisors.
Registration for the Conference is open. Visit online at:
http://aaplonline.com to register today.

Realty411Guide.com

Jumpstart Your SFR Portfolio, pg. 34

Whatever your investment style, we have the capital

for either strategy. Its an exciting time to be an investor; trends indicate that the rental market will continue to
improve over the next decade. Colony American Finance is ready to provide meaningful and cost effective
financing options for your portfolio.
Colony American Finance (www.colonyamericanfinance.
com) is the leading provider of low cost, non-recourse
revolving bridge & permanent mortgage financing for
owners of single family rental portfolios. Our affiliate,
Colony American Homes, owns more than 22,000
homes across the United States, so we approach lending from the perspective of the landlord-investor. Both
companies are owned and controlled by Colony Capital LLC, a real estate investment firm with $54 billion
invested, including a publicly-traded mortgage REIT.
When you work with Colony American Finance, you are
talking to a professional, experienced lender who offers
competitive rates, knows how to underwrite and get your
deals funded.
Please call 1844.CAF-CAF1 and visit us at
http://www.colonyamericanfinance.com to refinance
your rental portfolio or leverage your buying power with
a credit line. We have the capital for either strategy.
Meet Your Creative Financing Experts, pg. 22

and saved the cost of mortgage insurance

Used for repair costs on the house and avoided the
expense and effort of a construction loan
Kept an emergency fund that earns 5% or so on
that money instead of a banks pitiful near zero rate
Used a regional bank for a 5 year balloon loan with
much lower loan origination costs and interest rates.
She can do that because this system pays off the
bank loan in just a few yearswell before the balloon
kicks in and interest rates rise
The client says, The best part is that I end up with
a house AND all the money that would have gone to
mortgage payments!
Can This Work For You?
You can learn more about investing in real estate using a Living Benefits policy when you attend
national Realty411 events where Rice and Beam will
be featured speakers. Plus, look for future issues
with articles explaining in more depth how to increase
your real estate returns using a Living Benefit policy.

PAGE 36 2015

Private Money411

REAL ESTATE - FINANCE - TAXES - INSURANCE -BUSINESS - CREDIT

Join Us for Our CashFlow Expo

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Here Comes the New Guard: B2R Finance Leads Lending Innovation, pg. 10

cient lending platform which provides

low rates and speed in funding, requiring the least amount of data, while
retaining sound credit decisions. Beyond the sunnier math of using single
credit lines to flip or rehab and manage multiple properties, this creates
a more turnkey financing solution so
that investors can redirect their time
to growing their portfolios versus managing them.

the best net returns and most time to

enjoy their gains from the rest.
Whomever investors have been
using for leverage until now, it is
worth keeping an eye on whats
coming out of the B2R Finance
Lending Lab. For more insight into
the minds and intelligence being injected into this mortgage mavericks
DNA, check out B2RFinance.com
and DwellFinance.com.

SCALING YOUR PORTFOLIO

WITH LESS FRICTION
Both passive investors and real estate
entrepreneurs will find loan solutions
like these provide the framework needed to scale their portfolios while the
market is ripest. Looking forward, it is
finance relationships and the operational edge which will divide those with

The NEW Rules of Fundraising, pg. 34

time, and financial burden of filing

to raise funds like this Trowbridge
gives us a smart legal hack. That
is, using the ability to test the
waters. With the help of a good attorney you can run tests, and solicit
letters of interest, and encourage
investors to provide their information
to receive an invitation. And you can
do it online or live on stage at real
estate industry events.
GET THE 411+
Find out more about safe and
effective capital raising at SyndicationLawyers.com, and check out
the great articles on So You Want
to Be a Hard Money Lender for the
25 questions you should be able to
answer first, and Powerful Tools to
Raise Big Money for the technical
details of Reg. D, Rule 506c, Reg.
A, and crowdfunding.

Raising Capital and Private Money pg. 6

For two years, REI Wealth

Monthly has been delivering
vital industry news, tips and
insider secrets to success.

going into pools. The benefits to

loan level buying include the ability
to cherry pick and purchase equity
deals. Loans with equity are usually
priced at a premium but are considered to be safer. In due time and
with experience youll find more
loans and more discounts and will be
able to buy pools, of which you can
choose high or low equity for example. Time and experience are barriers to entry on large trades mainly
because banks want to unload pools
to reputable servicers that can show
their history in the business.

REIWealthmag.com

NEW ISSUE!

Co-owned by Realty411
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PAGE 38 2015

Private Money411

TRIPLE YOUR

EARNINGS
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Weve
been looking
for a way
to refinance
our rental
properties.
B2R was the
answer.

Brian Evans
Investor
Plano, TX

Residential real estate investors arent used to having

easy options for financing, re-financing and unlocking
equity from their rental properties. Until now.

B2R walked us through the process

and made sure we were
comfortable every step of the way.
- Brian Evans

At B2R Finance, residential rental mortgages are all

we do. That means were committed to finding faster,
easier and smarter options for you. For example,
we provide blanket loans allowing you to eliminate
multiple mortgages and package several properties
into a single loan. We also make asset-based loans that
consider the cash flow of your rental property rather
than your personal debt-to-income ratio.
In short, we provide innovative solutions that are tailormade for real estate investors.

855.710.0227

Nationwide Financing
Up to 75% LTV
Recourse & Non-Recourse
Aquisition Line Available
Up to 30-Year Amoritization
........................
PROPERTY TYPES
Single-Family Residences
2-4 Family Units Condos
Townhomes Apartments
Mixed-Use

B2Rfinance.com

B2R Finance L.P., NMLS ID # 1133465, 1901 Roxborough Road, Suite 110, Charlotte, NC 28211. B2R Finance L.P. is not a residential mortgage lender. B2R Finance L.P. only
makes loans with a commercial purpose and is not currently authorized to make such loans in all jurisdictions. Your specific facts and circumstances will determine whether
B2R Finance L.P. has the authority to approve loans in your specific jurisdiction. B2R Finance L.P. operates out of several locations, but not all locations conduct business in all
jurisdictions. Arizona Mortgage Banker License BK#0926974. Minnesota: This is not an offer to enter into an agreement. Any such offer may only be made in accordance with the
requirements of Minn. Stat. 47.206(3), (4). Oregon Mortgage Lender #ML-5283.