JOBS Act…Plan for it

For those of you who haven’t been following the JOBS Act, it is a bill that will make it easier for startups and small businesses to raise funds, especially through online crowdfunding, is the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.

 

The JOBS act was designed to help small businesses by:

 

1. Removing general solicitation and advertising restrictions for certain private offerings

 

  • Rule 506 – If all purchasers are accredited investors
  • Rule 144A – If issuer reasonably believed all purchasers are qualified institutional buyers

2. Creating a new $1M crowdfunding exemption, allowing non-accredited investors to participate in the funding rounds

  • Up to $1M of securities in a 12-month period
  • Investor’s net worth <$100k they can purchase greater of $2k or 5% of annual income or net worth
  • Investor’s net worth $100k+ they can purchase 10% of annual income or net worth up to $100k

Complete article

The SEC will have a 270 days to implement additional regulations from signing of the bill.

If you are a real estate investor who may be looking to raise private capital through this vehicle you may want to start planning in the meantime.

Planning is the foundation to your success, Execution is the material that creates the business. Execution without planning is like wanting to drive to Fargo without a map. You may end up getting there but a little planning could have saved you a lot of time.

  • Check out my previous blog post where I lay out business planning and goal setting:

http://gabhartinvestments.com/article/in-the-office-today-working-on-my-2010-real-estate-business-plan/

  • Get all the documents in place. Including your business plan, incorporation documents , financial analysis & forecasts and a full executive team bio.
  • Do market research. Get all the facts in place in order to have a strong argument as to why people should fund your project.
  • Start putting together a list of contacts and potential investors.
  • The concept of crowd funding involves work from the user seeking funds as they need to leverage their networks and ask their networks to lend a hand. We found that the initial 30-40% of activity actually comes from the users’ network.
  • Make a video
  • Start to craft your pitch in the best possible way. If someone asks what you do can you explain it in 30 seconds or less? Do you know what your most common questions are and the answers to those questions?
  • Start building your social network presence. Remember crowd sourcing is based on smaller amounts of money from multiple people. Start building your network and credibility

Time will tell exactly how much impact the JOBS Act will have on the job market and raising money for Real Estate

Some reasons it may not make sense:

IF the SEC:

  • Makes it to costly to set up
  • Makes it to complicated to create
  • Has to be sold through securities brokers

OR

  • It may be to cumbersome to have a lot of little investors on deals.
  • More red tape and reporting requirements

I am not sure yet whether this is a good thing or not. It really depends on the SEC final terms which I will report on when the grace period is over.

 

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planning for the FUTURE of your business

planning for the FUTURE of your business

Our workshop series covers the 5 F’s of Residential Redevelopment: Finding, Feasibility, Funding, Fixing, and Flipping. None of which would be possible without the “6th F” (we had to use an “F”): planning for the FUTURE of your business. Having a successful real estate business starts with knowing what you want to accomplish and then creating a plan you can execute.

With the new year upon us, it’s a great time to step back and evaluate your Real Estate business and set some measurable goals for 2012. In this workshop we’ll share with you our plans and goals for 2012 as well as the process we’ve used to develop our plan.

 

Some highlights include:

  • Developing a business plan for yourself and to give to investors and lenders.
  • Setting, tracking, and measuring goals.

Space is limited, so visit EVENTBRITE to sign up & reserve your spot!

 

Thank you Trilion Capital for sponsoring this event.

 

 

For the most updated information & news on real estate & Gabhart Investments go to our Facebook & twitter pages

 

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Esparta Fix and Flip workshop

Esparta Fix and Flip workshop

We invite you to join us for a free workshop at our newest completed project!

Saturday October 29th from 9am-11am at 9759 Esparta Ct.  Santee, CA 92071

Our workshop series covers the 5 F’s of Residential Redevelopment: Finding, Feasibility, Funding, Fixing, and Flipping.

In this workshop we will primarily focus on what many consider to be the most challenging: Fixing!

 

 

 

 

 

 

Some highlights include:

  • Our scope of work & budget and how it changed during the project.
  • Challenges we encountered during construction.
  • Permitting a garage and bedroom/bath additions with the city.

 Space is limited, so SIGN UP HERE to reserve your spot!

All those in attendence will recieve a copy of our initial walkthrough packet which can be used to estimate construction costs on your projects.

Light refreshments will be served.

 

For the most updated information & news on real estate & Gabhart Investments go to our facebook & twitter pages

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Marketing our properties to sell quick style!

One of the largest profit eaters when it comes to investment properties is a drawn-out marketing period. Over many projects, we have streamlined the process of selling a property in order to single out the reason for an untimely sale down to price alone. We aim to have an offer in the first week and almost always close the sale within 45 days of listing. This is accomplished through a team effort and a marketing strategy with detailed responsibilities and deadlines.

We buy all of our deals as principals through agents (not auctions) so we show our appreciation for bringing us the deal we relist the renovated property with them and provide them with our marketing plan. Here’s a snapshot of what we do before and during the listing:

14 days out both we and the agent create a cma independent of one another and tour properties noting positive and negative characteristics to arrive at a listing price or range. We send the agent the marketing plan along with a commission scale that rewards them based on their work and on the profitability of the project.

7 days out agent visits the property and takes pictures and notes punch list items that need fixed before property is show-worthy. After the final construction clean we schedule staging (if appropriate) and professional photos/virtual tour the following day.

3 days out our agent prepares a marketing flyer using the new photos and calls/emails agents who work that area to inform them of the property and present an opportunity for a pre-mls showing with their buyers. We collaborate on the best pictures and wording for the flyer and mls listing.

1 day out Agent puts up a sign and sentrilock on the front door. We keep a separate combination lockbox for our contractors and maintenance personnel. Agent posts an ad on several media sites (craigslist, facebook, etc.) and we post to our company blog.

Listing day list the property on the mls the day prior to the area broker pitch/caravan. We attend the pitch session with flyers and promote the property and our company. The agent sets up the open house and caters breakfast or lunch. We offer a gift card to the agent who guesses closest to final sales price.

Agent keeps the sign stocked with flyers at all times and sets up www.homefeedback.com to collect agent feedback efficiently. Agents need to be very responsive and answer their phone at all times. We schedule periodic cleaning and lawn maintenance.

 

For the most updated information & news on real estate & Gabhart Investments go to our Facebook & twitter pages

 

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San Diego market & strategy

The London Group are reputable economic advisors to the San Diego real estate community. Here are some hot points from their latest reports and interviews…along with what we’re doing about it.

Invest in assets with promise, or those that are stable. Employ a conservative approach and don’t go for the home run just yet. (we are specializing in many small residential projects with a quick turnaround while keeping our eye on the multifamily market for bigger opportunities)

Purchase in good metropolitan markets – those with diversified economies with limited potential for new supply, growing populations and good quality of life. (sounds like San Diego so we’re staying here!)

Forclosures have not surged yet in San Diego due to more short sales occurring before property becomes bank owned. They estimate San Diego foreclosures in 2010 to be 10,000, down from peak of 20,000 in 2008. (we are starting to see and pursue more short sale opportunities versus REO)

27% of all San Diego listings are distressed sales (this is still a large percentage but the key is building relationships with agents and banks to get the best deals before the competition)

San Diego has added 10,500 jobs so far in 2011, representing a 2% growth rate. (home values are still bouncing around at the bottom because we are not creating enough jobs to give buyers the confidence to come off the sidelines – as a result we are focusing on quality and pricing aggressively for a quick sale)

For more: http://londongroup.com/2011/06/08/dont-let-doom-gloom-cast-shadow-on-housing-market/

For the most updated information & news on real estate & Gabhart Investments go to our facebook & twitter pages

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Wireless apps and web tools from Agent Reboot event

Well, I might have been the only non-agent at the Agent Reboot event at Town and Country Resort here in San Diego last month. What I am though…is a guy trying to get and stay up to speed with the latest and greatest wireless apps and web based tools. I jotted down a few of the best ones from the event to help streamline our business:

Hopefully this helps you manage the mountain of media that seems to be growing faster than we can all climb.

For the most updated information & news on real estate & Gabhart Investments go to our Facebook & twitter pages

 

Please click here to like us on Facebook

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