Re: WREIA MEMBER ONLY – Saturday Event – Aug. 5th 9-11AM

Over the last few months, our monthly WREIA meetings have focused on Mortgage Notes and Self Directed IRA’s.

Here is your chance to see both of these investor tactics in action.

WREIA MEMBERS are invited to join us this Saturday in Upper Marlboro for our live event. (Address will be sent to MEMBERS only prior to the event.)

Come on out and learn about the real conversations you will have when it comes time to fund a property using Self Directed IRA funds.

Conversations with Investors, Closing Attorney, Sellers or Sellers Agents, and most importantly your directions for your account custodian.

Don’t worry if this sounds intimidating. There are a few basic guidelines I like to follow that makes sure everything takes place without any last minute issues.

All WREIA members will receive an email with more details and a local address.

BUT IT’S NOT TOO LATE TO JOIN US!

If you need to enroll as a WREIA member it’s easy enough. Just follow this link to our next WREIA monthly meeting event in Sept. When you sign up as a WREIA member we will include you with all the details for Saturday.

These WREIA member events are a GREAT opportunity to network with serious investors who are using real estate to raise their income and net worth and live the life of a real estate entrepreneur.

Securing those profits is a mystery to many people. Uncover some of those mysteries as you grab a front row seat and learn “from a street level” instead of a classroom.

We will be talking about funding and mortgages but you will also get to see what the renovation BUDGETS are like inside houses in 2017 here in the DC area.

Join me and other WREIA Members this Saturday.

You can grab a WREIA membership at this link.

And remember –

We have WREIA monthly meetings 10 times every year.

We take August and December off to spend time with family, friends or just catch up on life.

This special event will be the only opportunity to network with other WREIA members until our Sept. monthly meeting in Bethesda.

Let me know how I can help you,

John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, Founder

P.S. Interested in a lender or construction partner for your project? We lend to and partner with people all over the DC area. Call the office and lets set up a time to talk through or walk through your project.

Curbed DC

DC ranks first with most home flips in the nation Curbed DC Out of every state and city in the nation, Washington, D.C., had the highest number of home flips in Q1 2017, according to real estate provider ATTOM Data Solutions. The Washington Post reported that Maryland ranked as having the fifth highest number …

“Out of every state and city in the nation, Washington, D.C., had the highest number of home flips in Q1 2017, according to real estate provider ATTOM Data Solutions. The Washington Post reported that Maryland ranked as having the fifth highest number of home flips in that time span with the majority of these flips in Prince George’s County.

In the District, home flips increased 10.7 percent quarter-over-quarter and 32 percent year-over-year. The only state to have a higher yearly increase than D.C. was Hawaii, which had a 36 percent jump. Maryland’s home flips grew 8.5 percent quarter-over-quarter.”

Re: Want to work or “Need” to work?

A recent conversation with a friend…..

“I’m just going to keep working. I enjoy traveling on vacations too much and if I retire now, those trips will have to stop. I just won’t be able to afford it.”

Let’s not get into the debate of how much you need to comfortably retire.

Everyone has their own personal situations, desires, and opinions when it comes to the “NUMBER.”

What’s your number? The number that lets you walk away and live life on your own terms? The number that lets you travel when you want, help other people when you see an opportunity, or just relax for a few months with friends at the location of your choice.

What I can tell you is this – at some point, you may want to stop “working” and either slow down or just change how you spend your days. Going to a “job” every day is only going to be satisfying for so long. At some point, we all develop a desire for more.

At some point, my friend is going to have to make a decision to either quit “working” and enjoy a different pace of life, or life will make the decision for them.

We all know of the outliers in society who come into work every day until they are in their 90’s.

In fact, the article posted on Bloomberg yesterday points out the number of people who intend on working LONG PAST 70!

Good for them.

It’s not for me though.

I made a decision a long time ago that real estate was going to be my career. But at some point, even my plan is to shut down the day to day operations and do more traveling with my family. More quality time.

Most people who know my story know that I don’t really trust the stock market. It just never made much sense to me. Give my hard earned money to someone else that runs a mutual fund, and hope that they pick a good company? Nah. Not for me either.

When we go into a property that needs to be repaired today, it’s pretty obvious at this point for everyone on my team. Buy a property, fix it up and sell it at a higher price. The difference in the purchase price and sale price (minus expenses) is our profit.

What I’m hoping to share with everyone at WREIA this month is your ability to use real estate to fund your retirement years. Do work today that pays off 5, 10 or even 20 years from now.

I’m not talking about rental property – although rentals are a great vehicle for income when done correctly.

I’m talking about using something called a Self Directed IRA to “do” real estate.

Our speaker at WREIA this month, Jack Kiley, is one of the countries top experts when it comes to using Self Directed IRA’s to fund real estate deals.

At the base of it, combining SDIRA’s and real estate is very simple. Use the tax benefits of a retirement account to shelter your flipping or rental profits from taxes until you retire.

Most people think it’s complicated by it’s really very simple.

Two people start with the same amount of capital. They both have 100k to invest.

Investor #1 decides to do real estate in the traditional sense and has come up with a 5-year plan.

Year 1 – he uses his 100k to do two deals. In both deals, he makes a total profit of 60k.

30% (maybe more) of that profit will go to pay federal and state and possibly local taxes. So in reality Investor #1 just made 18k less than he thought. He still has 42k in profit, and that’s great.

Let’s repeat the exact scenario for the next 4 years.

Year 2 – 60k profit. 18k taxes. 42k net profit.
Year 3 – 60k profit. 18k taxes. 42k net profit.
Year 4 – 60k profit. 18k taxes. 42k net profit.
Year 5 – 60k profit. 18k taxes. 42k net profit.

Over 5 years Investor #1 has accumulated 210k in net profit after paying almost 100k in various taxes. Total capital at year 5 is now just over 300k.

Let’s bring in Investor #2.

She decides to open a Self Directed IRA with retirement money from a previous career. She also has 100k. While she is still working today, she wants to fund her long term retirement plans with some extra income from flipping properties.

Five years from now she wants to retire and travel on her own terms. Instead of two or three weeks a year, she wants to spend a month or two on a Caribbean island and escape the DC winters – without thinking about work back home.

Here is her plan:

Investor #2 starts with the same 100k. She makes 60k a year flipping properties with a friend.

The difference is – she doesn’t have any money taken out for taxes. (As long as she sets up her accounts correctly and uses the right company to be a “custodian” of her funds.)

Year 1 – 60k profit.
Year 2 – 60k profit.
Year 3 – 60k profit.
Year 4 – 60k profit.
Year 5 – 60k profit.

At the end of 5 years. 300k extra is now sitting in her Self Directed IRA account to do with as she desires in her retirement. She is sitting on a total nest egg of 400k.

That is a 100k difference in just 5 years.

And let’s be honest with ourselves. If the money isn’t tucked away in a retirement account, are we just a little more likely to use it for day to day expenses? I know I am guilty of dipping into savings accounts from time to time. But I cannot “dip” into my Self Directed IRA accounts. (You can use SDIRA funds for certain emergencies, but let’s not get too technical in this very simplified example.)

Where this get’s really exciting is when you can switch from the active roles in the day to day renovation business and become more of a passive stakeholder. Let’s say you start to lend money at 8, 10 or even 12% on projects and now you don’t have to be there for the day to day hassles of flipping homes.

My role in the DC real estate investing community has brought me many fond memories.

But in my opinion, some of my best accomplishments are knowing that I’ve introduced and helped some families take the leap into the world of Self Directed IRA’s. They are going to have much more financial freedom in their retirement years because they put in a few years of hard work getting ready for that phase of their life.

So this month – LET’S GET TO WORK – it’s time to start planning for the future. It creeps up fast and the only way to get started – IS TO GET STARTED.

Jack will give you some pointers on what is best for all of us in certain situations. Someone in their 20’s or 30’s has a very different outlook than someone staring down their 50’s or 60’s or beyond.

I’m extending the invitation. Join Jack Kiley and dozens of other investors at our WREIA meeting this Monday, July 17th.

*********

Interested in a single night seat or a WREIA Membership?

Save a few dollars and reserve your seat early.

Tremendous Savings and Additional
“Members Only” Perks for WREIA Members

*********

FOCUS and make 2017 a great year for your business!

Let me know how I can help you,
John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, Founder

P.S. Interested in a lender or construction partner for your project? We lend to and partner with people all over the DC area. Call the office and lets set up a time to talk through or walk through your project.

Re: Ten Best Cities For Global Real Estate Investors

DC didn’t make the top 10, but it did sneak inside the top 20 (#19) when it comes to global real estate investors.

Forbes recently ran an article on the top cities worldwide when it comes to real estate investing.

Our sleepy little city, once packed with government bureaucrats, has woken up and been found by investors around the world. Once the global travelers arrived here, they found a vibrant city full of culture, world-class entertainment, and food.
Residents in DC really love their restaurants. A variety of nearby restaurants is a telltale sign of a good neighborhood.

This is a city run on networks of people, many of whom are at the top of their game. In a word – POWER – is embedded in the DC professional business community.

One of the biggest money power grabs in history occurred in 1974 when the US Congress created the Employee Retirement Income Security Act. This Act created the original IRA.

The problem was, it was only available to people who did not have another employee sponsored retirement account. On top of that, it was limited to $1,500 dollars per year of contributions.

What a snooze.

Until 1981 rolls around. We were going through another recession when the government decided to allow ANYONE under 70 1/2 to contribute to an IRA.

We have had a few other changes since then, but none as important as the clarifications on the Self-Directed IRA issued by the IRS in 2001.

Today 40-50 MILLION people have some sort of an Individual Retirement Account.

The trick for many people is that they need to make it grow – fast. For most people when they start thinking about retirement, we are already pretty far down the path of life, and “retirement” is sneaking up on us faster than we like.

That said – tucked inside our back yard is my friend and nationally known expert on Self Directed IRA’s.

Jack Kiley is the Managing Partner of MidAtlantic IRA and is known for his technical knowledge and nuances of the Self Directed IRA and other retirement vehicles available to the small business owner.

There is no other financial vehicle today other than the Self Directed IRA (and IRA derivatives like SEP accounts) that will provide you with the ability to “do real estate” inside of a retirement account.

If you are active in the DC area or beyond, or just have a few questions about IRA’s this next WREIA meeting is an amazing opportunity to come out and get the REAL STORY on the benefits of using a Self Directed IRA.

Jack’s reputation for “speaking in plain English” regarding complex concepts gets him invited regularly to speak on these topics to groups across the country – and especially on the topic of self-direction.

When we were working on the calendar for WREIA topics in 2017 Jack Kiley was at the top of my list. He is a secret “weapon of knowledge” for me and his company should have a seat at your power table when it comes to your list of resources in this industry.

With everything going on in the world today, protecting some of your hard earned profits should be at the top of your list.

Tucking away “something for retirement” is something we all know we need to do.
It’s not sexy to talk about retirement, we all know that.

You probably won’t see a TV show about the management of Self Directed IRA’s. Highly unlikely.

So this month – LET’S GET TO WORK – it’s time to put some time into planning for the future. It creeps up fast and the only way to get started – IS TO GET STARTED.

Jack will give you some pointers on what is best for all of us in certain situations. Someone in their 20’s or 30’s has a very different outlook than someone staring down their 50’s or 60’s or beyond.

I’m extending the invitation. Join Jack Kiley and dozens of other investors at our WREIA meeting on Monday, July 17th.

*********

Interested in a single night seat or a WREIA Membership?

Save a few dollars and reserve your seat early.

Tremendous Savings and Additional
“Members Only” Perks for WREIA Members

*********

FOCUS and make 2017 a great year for your business!

Let me know how I can help you,

John Peterson
301-881-5541
Washington REIA Network, President
Profitable Property, Founder

P.S. Interested in a lender or construction partner for your project? We lend to and partner with people all over the DC area. Call the office and lets set up a time to talk through or walk through your project.

WTOP

Real estate firm: 10 best-value neighborhoods in DC area for first-time buyers WTOP WASHINGTON — With home prices in the D.C. metro area hitting an all-time high in May, more buyers may be resigned to look in less-desirable areas but real estate firm Trulia has identified 10 of what it calls Washington’s Best Value Neighborhoods for … and more »

No. 1 on its list of Best Value Neighborhoods in Washington is University Park, Maryland.

The community gets high marks for schools, a low crime rate, a good commute and a median home selling price that’s well below the metro area average.

In D.C., Kingman Park in Northeast D.C., just North of the D.C. Armory and within blocks of the bustling H Street Corridor, is No. 2 on the list. It scores well for restaurants and schools.

Farlington-Shirlington in Arlington, Virginia, comes in third. It ranks high mostly for value, or what you get for your money.

Trulia’s top 10 best value neighborhoods in the region:

University Park, Maryland
Kingman Park, D.C.
Fairlington-Shirlington, Virginia
Fort Belvoir, Virginia
North Springfield, Virginia
Groveton, Alexandria, Virginia
Pimmit Hills, near Tysons Corner, Virginia,
Broadlands, Loudoun County, Virginia
Fort Hunt (near Mt. Vernon), Virginia
Lincolnia, near Annandale, Virginia