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.

 

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

 

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Funding Your Real Estate Deals

Funding Your Real Estate Deals

 

Our workshop series covers the 5 F’s of Residential Redevelopment: Finding, Feasibility, Funding, Fixing, and Flipping. In our upcoming workshop we will be focusing on FUNDING.

Some highlights include:

  • The 3 most important things an Equity Partner looks for.
  • Hard Money Loans: How to get them and how to make them work for you.
  • Private Lenders and Trust Deeds
  • Leverage: When it helps & when it hurts.
  • How to determine what souce of funding is right for you.

 

We are hosting this event at our Ciera Project, located in the prestigious Heritage Community in Poway. We we will use the Ciera Project as a case study for applying the various funding methods in relation to high-end ‘flipping’. For more information on the Ciera Project visit our WEBSITE.

 

Visit EVENTBRITE to register!
Thanks to our sponsor

 

I like to get our name out there.


Thanks




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

ps. click here to like us on facebook

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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

 

Please click here to like us on Facebook

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Stayed at a Holiday in Express and now I am teaching Real Estate Investing

Below is an outline of the event I will be putting on tomorrow at the Double Tree in San Diego at hotel circle. Through cliff notes, youtube, wikipedia and staying the night at a holiday inn express really helped me out

For those of you who can’t make it or are unsure what it is about I am pasting the outline here. The lines are fill ins we will discuss and I plan on it being pretty interactive. May even throw in a cold call to a property owner to see if they will sale. Hope they don’t yell at me!

Click here for information on the event

gabhart investments, Inc

A GUIDE TO SUCCESSFUL REAL ESTATE INVESTING

Investing & Generating Wealth with Apartments



APARTMENTS

  1. I. Introduction

  1. II. Apartments, Office, Industrial, Single Family Houses Ohh my!!!

  • Why buy
  • Why Sale
  • Why Wait?
  • ______________________________________________________
  • _____________________________________________________
  • ____________________________________________________
  1. III. Figuring it all out and where to go from here…

v  Pick a niche & create a plan

  • Basic business plan

ü  Questions to ask yourself

  • Experience
  • Type of property
  • Where are you going to buy
  • Size
  • __________________________________________________________________
  • Coinage$$$ and where are you going to get it?
  • ___________________________________________________________
  • ____________________________________________________________
    • Investors
    • Know the rules
    • I am not an attorney nor even that smart so get an attorney but here is what I do know
    • ________________________________________________________
    • ___________________________________________________
    • _______________________________________________________
    • ___________________________________________________
    • How much of a deposit do you have?
    • Lenders
      • Who should I go to a bank or broker?
      • ____________________________________________________________
      • Risk tolerance
      • Team
        • Attorney
        • Accountant
        • _________________________________________________________
        • ________________________________________________________
        • ________________________________________________________
        • ________________________________________________________
  1. IV. Developing Expertise

v  Geographic knowledge

  • Drive all the areas you are buying in
  • Barriers to entry?

ü  __________________________________________________________________

ü  __________________________________________________________________

ü  ________________________________________________________

ü  ___________________________________________________________________

ü  ______________________________________________________

ü  ____________________________________________________________

ü  ___________________________________________________________

v  Past sales transactions

  • Where to get information
    • Agents & their companies
    • Public records
    • ___________________________________________________________
    • ___________________________________________________________
    • ___________________________________________________________
    • ___________________________________________________________
    • ___________________________________________________________
    • ___________________________________________________________
    • ___________________________________________________________
    • ___________________________________________________________
    • Oh yeah watch out for…

ü  Data is based on pro-forma (projections)

ü  ________________________________________________________________

  • Price trends

ü  Are prices moving up or down

  • Are actives selling for more or less than the solds?
  • _______________________________________________________________
  • _______________________________________________________________
  • Call agents to get insight

ü  Months/Years of inventory

  • Here’s how
  • Rental market

ü  Know your rents!

  • Survey

You will find other deals this way

  • ___________________________________________________________
  • ___________________________________________________________
  • Property management companies
  • Local apartment owners associations
  • ____________________________________________________________
    • Craigslist
    • _______________________________________________________
    • Know the expenses of type, age and location of buildings

ü  Same as above

ü  __________________________________________________________________

  1. V. Now you’re an expert what’s next? FINDING THE DEALS

v  What is a deal?

v  _______________________________________________________________________

v  _______________________________________________________________________

v  _______________________________________________________________________

v  Finding off market or pocket deals

  • Go straight to the source – owners

ü  Tracking them down

ü  __________________________________________________________________

ü  __________________________________________________________________

ü  Costar

ü  _________________________________________________________________

ü  _________________________________________________________________

ü  _________________________________________________________________

ü  _________________________________________________________________

v  Shortlist & rank properties

  1. VI. Ok so you’ve found a deal what’s next?

v  Analyze

v  Let’s take some deals

  1. I. Getting the Cash

v  Whether a lender or investor they want to know _______

v  Creating a proposal

  • Introduction & cover page
  • Executive summary
  • _____________________________________________________________________
  • _____________________________________________________________________
  • Property specific

ü  Investment details

  • Address etc.
  • Purchase information
    • Price
    • Units
    • ______________________________________________________________
    • Financial information
      • Down payment
      • __________________________________________________________

ü  Executive summary

  • Acquisition costs
    • Purchase price & costs
    • Investment – cash
    • ______________________________________________________________
    • Investment information
      • Purchase price
      • Price per unit
      • __________________________________________________________
      • Income, expense & cash flow
        • Gross scheduled income
        • Vacancy and credits
        • _____________________________________________________
        • _____________________________________________________
        • Debt service
        • Cash flow before taxes
        • Debt service
        • Financial indicators
          • Cash on cash return
          • IRR
          • _________________________________________________
            • ____________________________________________
            • Operating expense ratio

Executive Summary

v  Property description

v  Property details

  • Construction
  • Age
  • Style
  • ______________________________________________________________________
  • ______________________________________________________________________
  • Income & expense statement
  • Property metrics

ü    CAP Rate

ü   _____________________________________________________________

ü   _____________________________________________________________

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

ps. click here to like us on facebook

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Funds expand with new Investment Manager

My name is Nick Walsh and I’ve joined Curtis’ team as an Investment Manager to build momentum in this exciting and lucrative residential real estate market. Curtis and I met this past October at a University of San Diego real estate conference. After talking for a while, it was apparent that we both shared an interest in the single family and multifamily business. We met for coffee recently and realized that there was synergy among our talents and personalities that could help seize opportunities and expand his business.

As Investment Manager, I am responsible for the overall management of fund activities. Curtis has done a great job building a profitable system for flipping houses, and I’m here to help him repeat that same success on a larger scale. I will be instrumental in forming and maintaining investor and lender partnerships as Curtis incorporates independent funds into the capital structure. I will be managing investor capital accounts, including contribution and distribution timing and amounts. As the business increases in volume and complexity, this is vital to ensure that returns are maximized and accurate. I will be preparing investor presentations and disclosures so that the status of every project is transparent and easily accessible for all stakeholders. In addition to my investor relations role, I will also be participating in individual property acquisitions through property selection and management of the escrow process. Once the property is acquired into the fund, I will assist with strategic planning and budgeting for expenses and cash flow. During each project, I will be interfacing with accounting to track actual performance to budget. In each role, I am focused on contributing the best information and ideas so the team can make decisions to maximize profits.  

My professional resume is posted here on our website at www.gabhartinvestments.com/about/key-people/. If you are looking for a more personal touch, here I am in a nut shell. I grew up in Boise, Idaho in a family consumed by the inevitable cycles of the real estate industry. I’ve seen the best and the worst of times (dinner table had either filet mignon or spam sandwiches). I left Idaho for the Central California Coast lifestyle and was educated at Cal Poly in Finance and Accounting along with the amazing social curriculum there. I figured out that I was a “numbers guy” and jumped on the KPMG bandwagon in San Francisco after college. However, I requested to be placed on several real estate clients in an effort to combine my two passions, maximize my talent, and keep my sanity. It didn’t take long for the real estate boom in 2005 to coerce me back to Boise to develop residential subdivisions for the family business. I was bringing big city, big company experience back to dominate the hometown scene. We had a great run, but the market collapsed and my journey back to California began. The Masters in Real Estate program at USD caught my attention and I remembered that San Diego was the place to be if you are into beautiful weather, sandy beaches, and a vibrant nightlife. Now I begin the next chapter, and I look forward to the challenge.

If you have any interest in meeting me, drop me a line and we’ll set something up for coffee, lunch, or happy hour. Take care until then.

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

ps. click here to like us on facebook

 & Here to follow us on twitter