Projections are that IRA’s will account for $5.6 Trillion in 2011 and 75% of Baby Boomers will rollover their 401k’s to an IRA’s. Much of this will be rolled over to Self Directed IRAs. Why? Attend Entrust seminar and learn the benefits and higher yields earned in a SD IRA.

For those that already own or will own residential real estate and need a really great lease, go to my site

For a Free Copy of my Residential Lease Agreement clicking here .

For more about Self Directed IRA’s , click here.

This link in blue is from About.com and is also a good explanation and is good source for more information on Self Directed IRAs.

Also, please complete the form on the right to receive your Free Self Directed IRA eBook.

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When making a decision about a private money loan, it is necessary to gather as much information as possible. The lender and borrow must be creative; not a robot or a decision machine like a traditional bank lending committee. There is no lender matrix in private lending and borrowing.

The human creative and analytical process is powerful in private lending; the direct opposite of the black and white world of the traditional banking world.

The niche private lending is providing is that creative process and, for you as the lender, make a yield, tax free in a Self Direct IRA.

The point is that you need to think about private money in a different way especially the  profit potential of being a lender using your Self Direct IRA. Be a good listener and understand your worse case exit strategy

For example: I was recently approached by a homeowner needing a second mortgage on their home – owner occupied. Most investors would not take a first look at the deal because it was second mortgage. Well, as you can guess, I did do the deal, along with a small group of investors. The CLTV (combined loan to value) was so low, the underlining loan’s terms were excellent and the home would have been easy to see if we did foreclose, I (and the other investors) felt very comfortable. Actually, without sounding harsh, I would have loved to foreclosed on the home and sell it on a ‘wrap mortgage’. We would have made a ton.

So, again, when making a private loan, look at the entire deal and plan for a conservative exit.

For a Free Copy of my Net Net Net Lease Agreement and more Forms and Agreements for Real Estate Investors, clicking here .

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Forms, Contracts & Agreements for
Residential & Commercial RE Investors.
Also includes Cash Flow & Value Analysis Spreadsheets

For more great real estate blogs,

please go to About.com and ActiveRain.com

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This is a re-print (with permission of course) of an article written by Gene Trowbridge, Esq., CCIM.

I’ve attended several seminars on raising private funds including Gene’s Real Estate Syndication/Raising Capital course; in March 2007. Gene’s in the only one I can recommend.

Gene’s course in not for beginners. It is very high level and detailed.

As you can see, Gene is an attorney and a CCIM. He teaches others the legal aspect of raising capital, raises capital for his own transactions and acts as legal counsel for others.

I recommend you visit Gene’s sites:   TrowbridgeCurriculum.com and  GroupSponsor.com . He is the only one (that I know of) that is educating RE Syndicators to do it the right way!

You should also join Gene’s LinkedIN Group: Gene Trowbridge: Commercial Real Estate Syndication Expert

FYI – I’ve received absolutely no compensation for endorsing Gene.

Regards.

W. Lewis Burger, CCIM

Gene’s Article:

Proposed Legislation and Real Estate Syndication

The pending legislation being voted on in the House and the Senate this week has three areas that will affect the real estate syndication business.

First, you have all heard about the “Carried Interest” issue where income that has been classified as capital gains may now be treated as ordinary income. Actually, I am not so concerned about that for my clients, as most of the transactions we work with are structured so that the income reported by the syndicator is already going to be classified as ordinary income, in that our syndicators never pay anything for what they receive, and as such it is ordinary income. Most of my clients do invest in their syndications, but they buy units just like everyone else. It is the fees or cash distributions we set up for the sponsor that is targeted by this bill. There certainly are other types of funds that will be impacted by this change and the commentators are suggesting the increase in taxes may cause sponsors to increase their fees, which could slow down money raising.

The second issue is that, going forward, the equity in an investor’s personal residence may not be used in determining whether the investor is accredited, by virtue of having more than $1MM in net worth.  This will cause us some problems as it should reduce the number of people who will be determined to be accredited under the net worth standard. The income standard for accredited investors ($200,000/$300,000) remains the same. What I expect we will see is more syndicators using the standard of a “Sophisticated” investor in their Rule 506 offerings or doing Rule 505 offerings where non-accredited investors are allowed.

The third issue is that at the last minute there was an amendment added to the bill that will require a PPM be developed for every syndication and given to every investor. You may remember that in a Rule 506 offering where everyone is accredited, there was no statutory requirement for a PPM. Most, if not all of our clients already develop and deliver PPMs to their clients. There was some discussion that the standard for disclosures in the PPM might be strengthened, but I will be looking to read the final language if the bill actually passes both the House and the Senate.

We’ll probably be talking about these issues at the Ultimate Workshop we are having in San Diego July 13 through 15 and we should know the final outcome of the legislative process by then. If you have already registered I will see you there. If you are not registered and are interested in joining us for that workshop, let me know.

Gene Trowbridge, Esq., CCIM

Gene@GeneTrowbridge.com
Trowbridge & Taylor LLP

25422 Trabuco Rd., #105-244

Lake Forest, CA 92630

949-855-8399 Voice

949-855-4013 Fax

CA DRE   756977

CA BAR  170570

Bankable Knowledge

Visit  Gene Trowbridge Curriculum Blog for license renewal courses and for real estate syndication information.

IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding any penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction(s) or tax-related matter(s) addressed herein.  This communication may not be forwarded (other than within the recipient to which it has been sent) without our express written consent.

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What most landlord don’t know is that there is liability piece in the tenant’s policy and the landlord can be named as an additional insured.  This is very important because the tenant’s policy will supersede the landlord’s policy if there is a liability claim; the tenant’s insurer get sued before the landlord’s insurer – HOW COOL IS THAT!

Here is the complete paragraph in my Lease Agreement:  Before occupying the Property, the Lessee/Tenant must obtain a tenant insurance policy with liability coverage of at least $500,000.00. The Landlord/Lessor is to be named as an addition interest with notices mailed to the Landlord/Lessor at the address herein provided.

I’d like to offer you a Free Copy of my Residential Lease Agreement by clicking here.

For more about Tenant’s Insurance, please visit this article.

This link in blue is from About.com and is also a good explanation.

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A strong lease contract or rental agreement is essential for a residential land lord to protect himself from tenants.

After mentoring new landlords for many years, the biggest mistakes I have seen are

1 – The landlord is too anxious to rent the home to anyone who can make the deposit and first month rent. The new landlord is cash strapped and needs someone to make the rent

2 – The landlord does not do a background or credit check on the new tenant. Many have terrible credit and have a criminal record.

3 – The landlords have a very weak lease contract or rental agreement. Usually the ‘newbie’ landlord buys a very simple and generic agreement from an office supply store. Terrible mistake!

I’d like to offer you a Free Copy of my Residential Lease Agreement by clicking here.

Also, a new landlord also needs to know what are his bundle of rights and what he may or may not do as a landlord. The above link in blue is from About.com and is a good and simple explanation.

Please remember the tenants have rights too. Just because the landlord owns the home, he/she must follow the law. The tenant has possession of the house and this give them rights too. The owner/landlord and the tenant must follow the laws where the house is located.

Thanks,

W. Lewis Burger, CCIM

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I discount my rental payment $200 if the payment is received on or before the due date, but the ‘on time’ payment is the rate I advertise in the newspapers, web site, etc. For example, the ‘rent’ stated in my Lease is $1200 but, after the $200 discount, the rent the tenant pays is $1000; the advertised rent was $1000.

This is a win/win situation for the landlord. If I receive the rent on time, I win. It the rent is late, I just earned another $200. HOW COOL IS THAT? The exact paragraph and verbiage is in my Lease.

For a Free Copy of my Residential Lease Agreement clicking here.

For more about determining what rent to charge for your house, you must consider supply and demand.  For more on this topic, click here .

This link in blue is from About.com and is also a good explanation.

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I’ve been a real estate investor for over thirty years and I love selling houses on a lease purchase.

Severability:

This clause is very important and is also a simple concept: it states if one paragraph or sentence of the lease or purchase is agreement is not enforceable by law, the entire agreement is not invalid. Only the part unenforceable is invalid. This issue arose years ago in a court case and where a judge ruled the  entire agreement unenforceable because only one sentence was deemed unenforceable.  This clause is now included in almost all legal documents

Bottom Line:
If one paragraph or sentence of an agreement is not enforceable, the entire agreement is not invalid.

See my clause entire below.

For a Free Copy of my Net Net Net Lease Agreement and more
Forms and Agreements for Real Estate Investors,
clicking here .

For more great real estate blogs,
please go to About.com and ActiveRain.com

From My Lease:
SEVERABILITY: In the event that any part of this Agreement is construed as unenforceable, the remaining parts of this Agreement shall remain in full force and effect as though the unenforceable part or parts were not written into this Agreement.

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