By M. Jane Garvey

How many times have you thought to yourself, that guy is so lucky. He doesn’t seem to know anything, but things keep falling in place for him. At the same time there may be people in your life who have everything going for them, but don’t seem very successful. Why is this?

Occasionally we attribute success to the amount of focused action people take. Goals, a plan to achieve them and action directed at the process. This is certainly one way to improve your odds of success. It is rare that people succeed with out trying. It is also hard to define success if you don’t decide in advance what that means for you. But focused action doesn’t seem to explain the luck.

More likely it can be explained by the concept “It is not what you know, but who you know.” If you are “connected” you may have the guidance needed to avoid the false starts, the wrong turns, and the dumb mistakes that others make. This hardly seems fair. The playing field isn’t level. Massive action by a connected person can be much more fruitful than massive action by someone going it alone.

The good news is – you too can be connected.  It is not just for those who inherit great wealth, are married to a tradesman, have a brother who is the building inspector, grew up in a family of landlords, etc. The best connections you can have are people with knowledge or experience, people who have been down the road you are traveling. You can develop the connections you need. Keep in mind that your need for connection may change during different phases of your investing journey.

Real estate investors associations (commonly known as REIAs) provide fertile ground for planting seeds and harvesting connections. Within an association you will find others that are doing what you want to do. It is likely that they have identified the tools and resources you will need.  Some of them have other connections you will need. You may have connections they need.

Make friends. Speak up about how things are going on your journey. Let people know what you are missing and what connections you need. Be open and genuine in your approach. We all like to help people when and where we can, but we can’t help if we don’t know you have a problem. It is very important to try to help others when you can as well. Connections are at least a 2-way street.

Interestingly enough, people who are handed connections as a birthright may have a hard time developing the skills needed to make new connections. They may seem privileged, and life may initially seem easy, but some of these people really struggle as their needs change.

You are in charge of your own journey. It will be different. You will define your success or failure. The knowledge and resources you need will be different as well. Even with this in mind, learning from others’ successes and mistakes can accelerate your progress. Take advantage of the resources, education, and networking that your real estate investors association provides. You are only one connection away, and chances are high that connection is right in front of you.

Jane Garvey is President of the Chicago Creative Investors Association.

by Jason K. Powers

To understand the unique approach of the Infinite Banking Concept (IBC), it’s essential to first delve into the foundational practices of the modern U.S. banking system – particularly, fractional reserve banking. This system, where banks are required to keep only a fraction of their total deposits in reserve and are free to lend out the remainder, is a cornerstone of contemporary finance. While the theory is that it fosters economic growth through increased lending (and most certainly enables banks to generate significant profits), it also introduces significant risks such as bank runs, asset bubbles and destabilization of the financial system at large, as we’ve seen time and time again.

Fractional reserve banking effectively creates money out of thin air. For every dollar deposited, only a fraction is kept on hand, and the rest can be used for loans. Before 1992, banks were required to keep 12% of deposited amounts on reserve. This meant they could loan out the remaining 88%. In 1992, that reserve was lowered to 10%.  This now meant that 90% could be loaned out. In March of 2020, following the shockwave of COVID-19, the Federal Reserve lowered that requirement to an unprecedented 0% (Zero Percent), where it has remained to date. We all know what this means.

This can lead to a multiplicative effect in money supply creation, potentially leading to inflation if not carefully managed. Through the lens of Austrian Economic theory, we would argue that it leads to unsustainable credit expansion that can cause economic bubbles and crashes. Austrian economists advocate for a banking system based on sound money principles – where money supply expansion is tightly controlled and closely tied to real assets like gold, thereby promoting economic stability and reducing inflation risks.

Transitioning to Infinite Banking Concept

Against the backdrop of these potential instabilities inherent in fractional reserve banking, R. Nelson Nash introduced the Infinite Banking Concept. Nash proposed that individuals could become their own bankers, thus sidestepping some of the systemic risks posed by traditional banking practices. By utilizing dividend-paying whole life insurance policies as financial tools, individuals can build a personal banking system. This system allows policyholders to borrow against the cash values of their policies rather than depending on commercial banks for loans.

Here’s how it works: a policyholder pays into a properly structured whole life insurance policy designed specifically for the purposes of Infinite Banking, which over time accumulates a cash value. This cash value grows at a guaranteed rate and also earns dividends. Policyholders can then borrow against this cash value for personal (or business) financing needs – whether for buying a car, investing in real estate, or funding a child’s education – without having to go through a traditional bank. Now you, the policy holder, is in control of the banking function in your life.  Imagine a life without the bank.

The beauty of this system lies in its simplicity and control. Loans taken against a life insurance policy come with no mandatory repayment schedule, and the interest rates are typically lower than those of bank loans. Moreover, since the policyholder is borrowing against their own savings, they are essentially paying themselves back, thus keeping the money within their personal economy.

Infinite Banking as a Sound Money Solution

From an Austrian Economic perspective, the Infinite Banking Concept resonates strongly with the theory’s core principles. Austrian Economics favors systems that minimize the risk of inflation and promote fiscal conservatism. By encouraging individuals to save and build their wealth within a life insurance policy – a historically stable and non-volatile asset – IBC promotes financial self-reliance and stability.

Moreover, by reducing reliance on traditional banks and their loan products, individuals using the Infinite Banking Concept mitigate the risk of being adversely affected by broader economic downturns or banking crises. They create a buffer against economic uncertainty by leveraging their life insurance policies to fund their borrowing needs.

In conclusion, while fractional reserve banking has facilitated economic expansion and prosperity on a massive scale, it is not without significant risks – risks that are amplified by the very nature of the banking practice as critiqued by Austrian Economics. The Infinite Banking Concept offers a compelling alternative that not only aligns with Austrian principles of sound money but also empowers individuals by making them their own financial managers. By building wealth in a controlled, self-sustained banking system, individuals can achieve greater financial security and independence, making the Infinite Banking Concept a prudent choice in an uncertain economic landscape.

Jason K Powers is a Multi-Business Owner, Real Estate Investor and an Authorized IBC Practitioner. In an exclusive partnership with the National Real Estate Investor Association, Jason is the go-to expert for all aspects of Infinite Banking and Life Insurance. Connect with Jason today to explore how life insurance can empower you to reach your financial goals. Visit www.1024wealth.com/NREIA for more information.

by Tony Youngs

As with most parents, we always want our children to do well and be successful. I myself only have one child, a 24-year-old daughter. As she was growing up and going through school, I always wanted her to get into real estate investing. Why, because it builds wealth and provides income even while you are sleeping. For me, a baby boomer, it has been the greatest life I have ever known. Pure joy.

I always took my daughter to see my rental properties and told her that I own them but my renters are buying them for me. I told her that they pay me rent to live there and explained to her about positive cash flow and how it works. I would also take her to rehab projects and walk her through them and then explain why we do it. I really thought I was rubbing off on her and making a good impression.

She made good grades all through school and was eager to go to college. I asked her what she was going to study and she said Psychology. When I ask her why, she said, that’s what I’m interested in. She told me that real estate is fine but “I want to do my own thing”. I respected her decision because when I was her age, I felt the same way.  I wanted to do what I wanted to do, no matter what my parents wanted.

My daughter went on to college and she did well, however, a funny thing happened during her last year at college –  she all of a sudden became interested in real estate investing. She started to ask me if I knew anything about wholesaling. I said yes, and I asked her where she had heard the term. She said a few of her buddies were telling her that they wanted to get into wholesale real estate. You see, when we parents say it, the younger generation doesn’t want to listen but when their peers say it, it becomes a truth for them. I told her I would be glad to help.

She graduated from college with a degree in Psychology and Immediately got a job in Colorado Springs, Colorado and put real estate on the side. She explained that millennials have dreams to travel and see the world. Some had no desire to get a home and start a family or settle in one place.  They seem to just want instant gratification.

Her job ended up being a one-year stepping stone but she loved Colorado and wanted to stay there but, decided to come back to Georgia.  My daughter discovered that living on your own is great but it takes money to make it. On her own she invested in the stock market and she said she lost money. It turns out she was day-trading. However, she remembered that real estate can produce large amounts of money and is a safer investment.

I began taking her with me when I go out to find deals, I explained that it is very competitive and that’s why I go door knocking and driving for dollars. The very first door we knocked on together, the owner talked and talked.  My daughter jumped right in and the homeowner really enjoyed talking to her.  He told her everything about how he wanted to sell but didn’t know what he was going to do with all his stuff.  He said his house needs a lot of work and that he wanted to move out of state and has a place in mind.  I said we would make an offer within twenty-four hours. My daughter and I went back to the office to write the offer.  It ended up solving all the problems for the seller.

My daughter has seen the light and is very valuable to the business because millennials and the younger crowd do everything on their phones. She understands the benefit of driving the neighborhoods to beat the competition and while we sit in front of a house, she tells me the owners name, the after-repair value, any liens against it, and the approximate loan balance – all from her phone before we even knock on the door.

In summary, if you want to get your sons or daughters involved in real estate, I recommend you show them copies of checks.  Why?  Because that is their main motivation. Remember they like instant gratification and want to work smarter, not harder. If they have jobs, show them how to invest their earnings in real estate. I would like to get my daughter a rental house or two – even if she must get a property manager.  Owning real estate has a proven track record.

I recently wholesaled a property to a 20-year-old who has 16 flips being rehabbed at the same time. He is the project manager and finds the deals. He is kicking it and has a money-backer with very deep pockets. I was so impressed that I have made arrangements for my daughter to meet him and learn from his successes.

We all wish we had started at a young age like that.

Tony Youngs is an active real estate investor and Hands On trainer,  a national speaker and the author of The “Hidden Market” system of acquiring off market properties. He can be reached at his website at www.tonyyoungs.com

By Carl Fischer

Reaching retirement is an important milestone, and part of the journey often involves managing your retirement savings. If you’ve recently changed jobs or retired, you may be faced with the decision of what to do with your old 401(k) plan. It can be daunting or exhilarating. It can be similar to the past years or an opportunity to unlock your funds, take control, and invest in a different way. This article will explore various options available to individuals with old 401(k) plans and provide insights to help you make an informed decision.

1. Evaluate Your Current 401(k) Plan

Before making any decisions, it’s crucial to assess your existing 401(k) plan. Consider the plan’s investment options, fees, and overall performance. If you’re satisfied with the plan and it meets your retirement goals, leaving your funds in the current 401(k) may be a viable option. This decision allows you to maintain the tax advantages and convenience of managing your retirement savings in one place.

2. Roll Over to Your New Employer’s 401(k) Plan

If you’ve started a new job that offers a 401(k) plan, you may have the opportunity to roll over your old 401(k) funds into the new plan. Assess the new plan’s investment options, fees, employer contributions, and other features to determine if it aligns with your retirement objectives. Rolling over funds into a new 401(k) plan can simplify your retirement savings strategy and keep your investments consolidated.

3. Consider an Individual Retirement Account (IRA)

Rolling over your old 401(k) into an Individual Retirement Account (IRA) is a popular choice that offers greater flexibility and control over your investments. IRAs provide a wider range of investment options compared to most employer-sponsored plans. A self-directed IRA provides true diversity and control, and the most asset options available, including alternatives such as real estate, notes, private placements, and precious metals to name a few. Self-directing your investments is more work but you are using your expertise and knowledge and investing in what you know and understand.  You can choose between a traditional IRA or a Roth IRA based on your tax preferences. While a traditional IRA offers tax-deferred growth, a Roth IRA allows for tax-free withdrawals during retirement.

4. Weigh the Benefits of a Roth Conversion

If you’re considering rolling over your old 401(k) into a traditional IRA, it’s worth exploring the benefits of a Roth conversion. By converting your funds to a Roth IRA, you’ll pay taxes on the converted amount upfront, but future qualified withdrawals will be tax-free. This strategy can be advantageous if you anticipate being in a higher tax bracket during retirement or if you desire tax-free income in the future.

5. Evaluate Tax Implications and Penalties

When deciding what to do with your old 401(k) plan, it’s crucial to consider potential tax implications and penalties. If you withdraw funds from the 401(k) before reaching the age of 59½, you may incur early withdrawal penalties and be subject to income taxes. However, rolling over your funds into another qualified retirement account can help you avoid these penalties and maintain the tax-advantaged status of your savings.

6. Conclusion

Navigating the complexities of retirement planning and managing your old 401(k) plan can be challenging.  You should consider personalized guidance based on your specific circumstances and analyze the pros and cons of each option, considering factors such as your age, retirement goals, risk tolerance, and tax situation.

Deciding what to do with your old 401(k) plan is an important step in securing your financial future. Evaluating your options, including leaving your funds in the existing plan, rolling over to a new employer’s plan, or transferring to an IRA, requires careful consideration. Take into account your investment preferences, fees, tax implications, and long-term retirement goals when making your decision.

Members of National REIA can save up to $784, including a free consultation with the founder, one year of VIP customer service, and the opportunity to set up a new account for only $1. Plus, there are no annual fees until your first investment. You’ll also receive one free expedited transaction processing and two complimentary outgoing wires for your real estate deals.  Please visit www.iraasset.app/nationalreia for more info.

Carl Fischer is a founder and principal of CAMA Self-Directed IRA, LLC (dba CamaPlan).  CamaPlan is a national, self-directed tax advantaged plan administrator company headquartered in Ambler, PA.

By David Pickron

Maybe nowhere does the saying “time is money” apply greater than it does in our industry. For each of us, we are well aware of the expense of having a property sit empty for a month or more, painfully knowing the impact it has on our bottom line. Experience has taught me that in order to protect my investment, I have had to establish hard and fast timelines to ensure that my returns always stay on the positive side of the ledger. This starts right with my first interaction with a potential tenant, all the way through the move-out process.

Here is my counsel on laying out timelines for the first three critical pieces of the rental process:

Completing the Application-

I recommend setting a strict timeline for completing the application. My standard practice is to give the applicant 24 hours from showing the property to complete the application. This ensures that I still have the ability to show the property to other potential tenants without having to wait days or weeks for them to decide if they want the property.

Depositing Funds-

Once the application is approved and we have completed the on-boarding process, I require a non-refundable deposit within 24 hours to hold the property. Some landlords like to get the deposit before the application process, but I personally found that refunding that deposit if they are not approved is a hassle and if I can onboard quickly, I have the deposit soon enough with someone I know is qualified. Again, this is up to you to determine, but apply this to all your tenants.

Rental Payments and Moving into the Property-

Although you may see these as the same things, they are very different. This is especially true when it comes to source of funds. With the rise of government involvement in housing, specifically Section 8, they are trying to control the timelines surrounding your property. If you decide to rent to someone receiving government assistance, the process takes two months to complete. In this case, are you willing to give up two months’ rent as you wait and hope that the applicant and your property are approved? For me, I require you pay the first month’s rent and take possession within two weeks after the lease is signed.

This process may seem obvious to many seasoned landlords. But I have one question, should you put these timelines in your detailed criteria before someone applies? The answer is a resounding YES! With all the tenant complaints and fair housing that is coming against us landlords, sharing your required timelines in a criteria shows that you have a strict, written policy and that treating everyone the same is something you take seriously. Now as a landlord, I know things change, markets change, and if you need to change your timelines in a criteria, then simply document the change and date your criteria sheet. If today you require move-in in 2 weeks, nothing says you cannot change your criteria tomorrow to say 4 weeks if needed; just always, always, always document it.  If you need a sample detailed written criteria, please email us at info@rentperfect.com and we would be happy to get a copy to you.

David Pickron is President of Rent Perfect, a private investigator, and fellow landlord who manages all types of rentals. Subscribe to his weekly Rent Perfect Podcast (available on YouTube, Spotify, and Apple Podcasts) to stay up to date on the latest industry news and for expert tips on how to manage your properties.

Members of National REIA can take advantage of special pricing from RentPerfect; the solution for rental property owners and managers for screening & managing tenants.  Learn more by visiting www.rentperfect.com or calling 1-877-922-2547.

By Pete Youngs (aka Mr. Rehab)

Whether we like it or not, ever since Covid came along the business environment has extremely changed for how real estate investors (as well as other businesses) have had to operate and adapt. In my particular case, not only was I investing in property, but I have been a national speaker for my whole career and do anywhere from 100 to 200 cities a year in live training sessions. Then, suddenly, it seemed as if the world closed down. People were not able to gather in groups of any kind, venues were closed, meeting spaces were unavailable and, in all honesty, my business was completely shut down.

After all, the essence of my business was face to face networking.  At a main event, we could have anywhere between 75 to 300 people as well as field trainings with bus trips handling roughly 50 people.  These weekend bus trips visited properties where I taught inspections, estimating, rehab costs and how to hire out contractors for about 50% off the regular general contractor rates. I was also stopped from doing my favorite and most popular things, such as my Mold Certification training and my Signature Home Depot Nationwide Store Tours that I originated over 20 years ago at corporate.

Now with live and in-person events put on hold during the pandemic (although I am happy they have since resumed), which no one could really predict how long they were going to last, changes had to be made.  I consider myself to be old-school and the people whom I had been speaking alongside of all these decades also needed to adjust how they were to stay afloat.

Originally, I was brought into the business by my brother, Tony Youngs, who is an expert in finding distressed and hidden market properties and I was the fix-up & rehab guy. Tony has set up with coaching calls once a week and one-on-one trainings for years – a smart move to have made. However, the pandemic opened up a whole new breed of people who took advantage of the limited face to face seminars and REIA meetings to those who were internet and tech savvy.

They opened up the world to online meetings – Zoom, etc.  Sure, most people were already there but not very many of us “career investors” were using these tools. So, when everyone found out that they could sit at home in a pair of pajamas and watch seminars without making the trip to an in-person event, a lot of them loved that concept. Even some of the REIA groups fell for the idea that their overhead costs would go down if they went that direction – room rental, food & beverage, speakers’ travel costs, etc.  However, many of the REIA groups who were not tech savvy lost their businesses, failed or even sold.

Now, I will explain my reason for sharing all this background. Recently, I adjusted to the market by changing my business plan.  My wife Barb and I used our IRA accounts with Camaplan, and started using our tax free and tax deferred plans (CamaPlan is a National REIA preferred vendor) to replace our incomes.  We bought two REIA groups that I run personally, North Metro REIA in Atlanta, GA and Metrolina Reia in Charlotte, NC.  We did this because live and in-person trainings are getting back up to speed. While most REIA’s are not back to full rooms, I can’t stress enough the huge advantage face-to-face and the in-person networking that goes on in REIA’s all across the country.

Attending meetings and swapping business cards with buyers, sellers, private money lenders as well as the education that is brought to you each month is really unmatchable – anywhere.

In addition, know that if your REIA is a member of National REIA, the benefits also include 20% off almost every paint in Home Depot and a 2% biannual rebate, cabinet and appliance discounts, as well as many other money-saving benefits from other providers.  You can see all of the member benefits on National REIA’s website.

But most of all please remember this;  There is no better investment than membership in your local REIA group (especially one affiliated with National REIA).  Where else for the cost of a nice dinner out can you improve your future? There are opportunities out there every day. There are those who sit at home and hope that some clearinghouse or lottery is going to deliver a life changing event to their mailbox and then there are people who realize that if you do not move, you never go anywhere.

That being said, my last thought to leave you with is this; Don’t let someone who gave up their dreams convince you to give up on yours… Think about that for a moment and thank me later.

Pete Youngs also known as “Mr. Rehab,” is a national speaker on rehabbing homes for up to 50% off.  He does seminars and bus trips promoting his training system called SWAT (Simple Ways And Techniques).  He has been a contractor/investor for over 30 years.  Learn more about him at PeteYoungs.com.

By Jeffrey S. Watson

Recently, I spoke to a group of real estate investors about buying properties using a creative financing method. Some of the questions asked reminded me how crucial it is that real estate investors have cash reserves to deal with the unexpected. I consider cash reserves to be “Murphy’s Law repellant” (anything that can go wrong will go wrong). Those who have cash reserves won’t be nearly as stressed as those who have no cash reserves.

I will admit that I have found myself, at times, in both situations. I had a devastating casualty event occur at a commercial property. Thankfully, at that time, I was sitting on $50,000 in cash which made it a whole lot easier to handle. I’ve also found myself, however, as the broke rehabber trying to squeeze out another $1,000 line of credit from Home Depot to finish a rehab that was already losing money. Let me tell you, having cash reserves is far better.

Some of you may say, “But Jeff, inflation is going to eat away at the purchasing power of that money.” I realize that, but I’m not talking about having large amounts of cash. I’m talking about having cash reserves of maybe 10-15% of your active investment portfolio. This is especially important if you are engaged in the business of private lending. You need to have cash reserves of maybe 10% to back up the outstanding loans in case one of them goes bad.

Does the money have to be sitting in a savings account making little to no interest? No, but you should be able to put the money into a demand account, such as a money market account, and make close to 5% on it. You might want to put that reserve money into something else that can quickly be made liquid. My reserves are not all in cash, but they can be turned into cash in three business days or less. Having those reserves has allowed me to sleep much better at night and be prepared to take advantage of a good opportunity when it shows up.

Let me tell you a story about a man who had cash reserves at the right time that enabled him to seize a good opportunity. In the Old Testament book of Ruth, we read about a mighty man of wealth named Boaz. In the final chapter, we see that Boaz, who had recently sold his harvested barley and wheat, had the cash necessary to buy back a piece of valuable, income-producing real estate. In so doing, he secured a bride for himself, and his future heirs would inherit the land he had bought back for an extended family member. Boaz was able to take advantage of an important opportunity at a critical time because he had the necessary cash on hand.

Cash reserves are a good safety net for handling things when they go wrong, and they will. It’s also a wonderful tool to use when good opportunities must be acted upon quickly.

Jeffery S. Watson is an attorney who has had an active trial and hearing practice for more than 25 years. As a contingent fee trial lawyer, he has a unique perspective on investing and wealth protection. He has tried over 20 civil jury trials and has handled thousands of contested hearings. Jeff has changed the law in Ohio four times via litigation.  His articles are also regularly featured the RE Journal.  Read more of his viewpoints at WatsonInvested.com.

By Rebecca McLean, Executive Director, National REIA

For real estate investors, achieving financial independence is often the ultimate goal. However, the path to this form of wealth is not solely about accumulating properties or even a bigger bank account. It is about attaining a level of independence that allows you to make decisions based on your desires and goals rather than financial pressures. Valuing independence, leveraging the freedom it offers, and aiming for a fantastic life are key to real estate investors and local real estate investor associations (a REIA) can play a significant role in supporting investors toward these goals.

1. Valuing Independence as a Real Estate Investor

For real estate investors, valuing independence means prioritizing autonomy over mere financial gain. It’s about building a portfolio that not only grows in value but also provides the freedom to pursue the life you envision. Independence in real estate investing is achieved through strategic acquisitions, diversification, and the smart management of assets to ensure a steady flow of passive income. This income stream enables investors to step back from the day-to-day grind and make choices that align with their personal and professional aspirations. Joining a local real estate investor association can be a pivotal step in this journey, offering access to resources, education, and a community of like-minded individuals who prioritize financial freedom.

2. The Liberty to Live on Your Own Terms through Real Estate

The most incredible freedom that real estate investment offers is the ability to live life on your own terms. Financial independence through real estate means not just the accumulation of assets but the liberation they provide. This includes the freedom to choose your projects, the flexibility to set your schedule, and the opportunity to work with individuals who share your vision and values. Local real estate investor associations play a crucial role in this aspect by providing networking opportunities, partnerships, and mentorship programs that open doors to new ventures and collaborations, making the goal of living on your own terms more attainable.

3.  Achieving a Fantastic Life through Independent Investing

For independent real estate investors, living a fantastic life is intrinsically linked to achieving financial independence. This entails creating a lifestyle where your investment portfolio supports your personal dreams, be it traveling, pursuing hobbies, or contributing to your community. A fantastic life is built on the foundation of independence, where your financial security is not tied to a single job or income source. Engaging with a local real estate investor association can significantly enhance this aspect by offering insights into market trends, investment strategies, and personal development opportunities that contribute to a well-rounded and fulfilling life as an investor.

4.  Leveraging Local Associations for Independence

Embarking on the path to financial independence as a real estate investor involves more than savvy investments; it requires a supportive ecosystem that fosters growth, learning, and collaboration. Local real estate investor associations provide this ecosystem, offering a platform for education, networking, and advocacy that is invaluable for both novice and experienced investors. Through workshops, seminars, and events, investors can gain the knowledge and connections needed to navigate the complexities of the real estate market successfully. Moreover, associations advocate for the interests of investors, ensuring a favorable investment climate.

Financial independence for real estate investors transcends the traditional metrics of success. It’s about achieving a level of independence that allows for a life lived on one’s own terms, supported by a business that provides both financial security and freedom.

Local real estate investor associations are instrumental in this journey, offering the resources, community, and support needed to realize this vision of independence. By valuing autonomy, embracing the freedom of investment, and striving for a fulfilling life, real estate investors can truly achieve the ultimate wealth: independence.  To find a National REIA-affiliated real estate investor association near you, click here.

Rebecca McLean is the Executive Director of National Real Estate Investors Association

by George Skidis

If you have ever had a high water bill you know how frustrating tracking down the issue can be. We have and tracking down leaks in a mobile home park is excruciating.

According to Illinois American Water a typical household leaks almost 10,000 gallons of water every year. That is enough water to wash 300 loads of laundry.

Here are some tips to help you figure things out.

1. Locate and red tag the main shut off in the house. Teach ever family member or tenant where it is to shut things down in an emergency
2. Have the water company come out to read your meter. Turn off the main shutoff in the house and ask them if the meter is still moving. If it is still moving you either have a bad shut off value or there is a leak in the yard outside your building between the meter and the foundation. Replacing or repacking a shut off is an inexpensive option. To see if it is the shut off open the kitchen and bathroom sinks. If the water in the pipes drains out the leak is in the yard. If the water never stops running you have a bad shut off.
3. Check all of your faucets for drips. A leaky faucet can waste over 3000 gallons a year.
4. The outside faucet for the garden hose is a likely culprit. The outside faucet is known by several names; garden faucet, freezecock, sillcock, spigot, hydrant, bell valve and anti-siphon spigot to name a few. If somebody left the hose attached over the winter that faucet could not drain when the temperature dropped below freezing. The pipe behind it may have frozen inside your foundation. Once it thaws there can be a pinhole leak or a geyser. Make sure to disconnect the garden hose before the first freeze. Go into your basement or crawlspace to check for this leak.
5. A worn-out ballcock can slip and slip all night and pump water down the overflow tube. There are several types available today from the original float valve type to the modern universal fill valve in all their variations. Before you go the expense of replacing the ballcock, try replacing the $3 rubber flapper first and see if that is causing the leak.
6. Washing machine supply and drain line. If you find water under or around your washing machine, be it clothes or dish type, you need to check the supply lines and the drain lines for leaks and loose connections. Although your insurance policy covers water damage they do not cover continuous and repeated seepage, and they will not pay for the repairs to the washing machine unless it Is damaged by Fire, Lightning or some other named peril.
7. Another way to check for leaks is to turn off all equipment, machines, televisions, radios and whatever else you have that makes noise and just listen. That may also include sending your spouse and children to grandma’s house for the day but get things quiet and listen. If you hear water running, there just might be a problem.
8. Leaky tub spouts and shower heads. This one almost sounds ridiculous. Water is supposed to come out of the shower head and tub spout. What you are looking for is water coming out at the wrong time. If you pull up the diverter on the tub spout you should only have water coming out of the shower head. If it comes out of both the buildup of corrosion in the tub spout may be preventing the diverter from sealing properly. This wastes a couple of gallons of water each shower. As long as it is not too far gone, you can remove the tub spout and soak it in full strength vinegar for 24 hours or so. If you can’t remove it try a plastic bag and a rubber band to tie it over the spout securely. After 24 hours the vinegar should have loosened or removed the corrosion and hard water deposits. Following up and scrubbing with a retired toothbrush should finish the job.
9. The last tip is to challenge the water bill if you have checked everything and can’t find a leak. We were successful in this one time and saved over $1,000 in the process. Water meters and readers do make mistakes, occasionally.

Good Luck and Good Investing!

George Skidis is President and Founder of Illinois REIA

By Jason K. Powers

In the tapestry of life’s responsibilities, there’s one thread that’s often overlooked until it’s keenly needed: life insurance. It’s not just a policy tucked away in a drawer or a line item on our list of grown-up concerns—it’s a profound expression of love and foresight. Imagine it as a silent guardian of your family’s future, a promise that whispers, “I’ve got you,” even when you’re no longer there to say it yourself.

Think of life insurance as the ultimate act of planning—a way to outsmart the unpredictability of life itself. It’s about ensuring that your loved ones can maintain their lifestyle, chase their dreams, and maybe, just maybe, not feel the financial gravity of their loss as heavily. It’s a unique blend of hope and pragmatism, woven into a safety net that catches your family when fate takes an unexpected leap.

Why do we strap on seatbelts every time we get into a car? It’s not because we plan to crash; it’s because we acknowledge the possibility, however slim, and choose to mitigate it. Life insurance echoes this sentiment. It’s not a morbid fixation on the end but a strategic move to ensure that the story goes on, even if we’re no longer around to see it unfold.

For families, the absence of a loved one often brings a dual burden: the weight of grief and the potential collapse of financial stability. Here, life insurance steps in, quietly taking care of college funds, mortgages, or even just the daily expenses that pile up, unnoticed until they’re not. It’s the unseen hand that keeps the ship steady, ensuring that dreams, those of your children or spouse, don’t drift away with the tides of change.

And let’s not forget about debts. They’re loyal companions to many of us, sticking around far longer than we’d like. Life insurance ensures that these unwelcome guests don’t overstay their welcome, becoming burdens for those we love. From mortgages to personal loans and student loans, it clears the slate, offering a breath of fresh air to those figuring out their next steps without you.

But life insurance isn’t just a financial parachute; it’s a versatile tool. For some, it’s a stepping stone to future dreams—a fund for education, a down payment on a home, or a seed for a business venture, and even a supplement to retirement. For others, it’s a way to leave a legacy, supporting causes close to their heart or ensuring their family’s prosperity for generations. And amid the complexities of tax laws, it often emerges as a beacon of efficiency, navigating through to provide benefits without the usual fiscal headache.

In essence, life insurance isn’t merely about mitigating loss; it’s about amplifying love, foresight, and responsibility. It’s a testament to the fact that while we can’t predict every twist and turn of life, we can certainly prepare for it. So, as we weave the narrative of our lives, let’s not forget this crucial thread. It might just be the one that holds everything together, ensuring that the story—our family’s story—goes on.

Jason K Powers is a Multi-Business Owner, Real Estate Investor and an Authorized IBC Practitioner. In an exclusive partnership with the National Real Estate Investor Association, Jason is the go-to expert for all aspects of Infinite Banking and Life Insurance. Connect with Jason today to explore how life insurance can empower you to reach your financial goals. Visit www.1024wealth.com/NREIA for more information.