Thoughts from the desk of Bob Repass…

The 2015 NoteSchool Summer Summit for mentoring students only will be held May 14-17 at the Alexis Park All Suite Resort in Las Vegas, NV. Think of it as mentoring on steroids! Plus, each day will conclude with a networking reception where you can connect or re-connect with other NoteSchool mentor students from across the country!

This year’s Summer Summit is FREE for all NoteSchool Mentor Students, but you MUST register.

We kick things off Thursday, May 14 with a special private Titanium VIP-only welcome reception. Enjoy drinks and hors d’oeuvres while you mix and mingle with our Senior Management Team, Industry guests, and other Titanium students.

Here’s what’s on tap at the Summer Summit on Friday and Saturday. This year we will have a slightly different format. These will be highly interactive sessions with all of our executive team. Eddie Speed, Charles Mangan, Susan DeLaGarza, Martha Speed, Ryan Parson, and I will be on hand to address various topics such as Completing Due Diligence, Overcoming Title Issues, Closing the Loan Purchase, Boarding & Managing Assets, Creating and Using Your Self-Directed IRA, Buying & Selling Partials, Finding & Sourcing Capital, Setting Up Meet-up Groups, and Crowdfunding.

Not already a NoteSchool Mentor? Want to find out more about note investing? Then sign up today for our Rich Rewards 3-day training class (also at the Alexis Park All Suite Resort). It runs from May 15-17 (Friday-Sunday). Register now.

Our whole team is working tirelessly to make this the best weekend possible. Please come join us!

Bob Repass
Managing Director

The Trading Corner

Second Chance

By Martha Speed

Don’t forget! Contributions to an IRA before April 15, 2015, apply to the 2014 tax year. This can help in three ways: First, contributions to a traditional IRA can reduce your taxes owed for last year, possibly resulting in the form of a larger refund shortly after filing; Second, it starts the clock in 2014 giving you one full year toward the 5-year rule for distributions when credited to the 2014 fiscal year; Finally, and most importantly, it allows you the second chance to top off the legal maximum contribution of $5,500 ($6,500 for people 50 years of age or older).

2015 Changes for SDRAs

1. Higher Contribution Limits

Taxpayers can contribute up to $18,000.00 into their 401k plus the catch-up contribution is increased to $6,000.00 for those ages 50 and over.
IRA contributions remain the same at $5,500.00 (plus the catch-up contribution of $1,000.00 for those 50 and over).

2. Higher Income Limits

Income limits for contributing to a Roth IRA has been Increased to $116,000.00 but less than $131,000.00 for individuals and $183,000.00 to $193,000.00 for married couples.

3. Limited IRA Rollovers for those taking distributions

This applies to what is called an “Indirect Rollover.” A new court ruling issued in 2014 set new limitations for those taking distributions and then moving them into another existing IRA account or a new IRA account to ONE tax-free per year (12-month period).

Previously under the distribution rule, you did not have to include in your gross income any amount distributed to you from an IRA if you deposit the amount into another eligible plan within 60 days.

Example: Molly has several traditional IRA’s and takes a distribution form IRA-1 which she rolled into IRA-2; therefore, she cannot roll over a distribution from IRA-1 or IRA-2 within the next year or 12-month period.

There is no limit on direct rollovers or transfers between custodians and IRA conversions from Traditional IRA accounts to Roth accounts.

4. Change in Health Spending Accounts

The contribution for Flexible Spending Accounts (FSAs) has increased $50.00 over last year to $2,550.00.

As of 2013, you were allowed to carry over $500.00 into the next year. However, 2015 changes may restrict and effect eligibility for this benefit. Be sure to check with your employer in regard to changes each year in your FSA.

Health Savings Accounts will see a small increase to $3,350.00 for individuals and $6,650.00 for families (plus the catch-up contribution of $1,000.00).

One IRS change for HSAs is a limit in regard to medical expenses for adult children over 24 still on your high-deductible insurance plan. Unless disabled, they are not eligible to use HSA funds to pay for their medical bills.

Disclaimer: The content is not intended to provide tax, legal, or accounting advice; seek professionals to provide advice on your specific circumstances.

Questions: We’d like to help you get the answer! Send questions or information you’d like us to cover in The Buyline to [email protected] for upcoming articles.

MarketPulse

Land Trust Creation and Implementation

The 2015 NoteSchool Summer Summit in Las Vegas gets rolling on Thursday, May 14th with a special one-day bonus class led by industry experts Jeff Watson and Walter Wofford. Learn how to protect your personal assets from lawsuits, plus the benefits of both land and personal property trusts. You’ll also learn how a trust adds protection to LLC’s and the intricacies of purchasing notes within a trust. This special pre-summit one-day bonus class is $499 – register today!

What will be covered:

Why trusts?
Trust Are a Different Kind of Operating System that creates firewalls.

Mechanics of a (Land) Trust & Personal Property Trust
What they are, How they work, and Who the players are

Top 10 Reasons to Use a Trust

1. Privacy
2. Discourages Litigation
3. Prevents You From Doing Something Stupid!
4. Protection from Some Liens
5. Assemble Investing Teammates
6. Creative Acquisition Techniques
7. Flexible Selling Strategies
8. Selling Partials of Performing Paper
9. Control more than you own
10. Using Trusts with LLCs

Choosing your Trustee
Dumb as a post or Smart as a Fox? An attorney or a wise fellow investor? Another firewall to prevent stupidity

Trust Documentation

• Trust Agreements
• Schedule of Assets and Beneficial Interest
• Transfer or Assignment of Beneficial Interest
• Certificate or Declaration of Trusts
• Direction of Trustee
• Deed into Trust
• Promissory Note & Deed of Trust
• Management Agreement plus much more…

Get your attitude right

• Who deserves to know what you own?
• How About Your Family?
• How about your Banker?
• Would you rather have statutory protection or anonymity?
• Spilling the beans in exchange for Privacy.
• Less can be more…
• When is a trust a great, good, or a bad idea?

Practical Issues when Operating Your Trusts

• How Judgments may attach to your Trustee or You as Beneficiary…
• How do you amend your trust?
• How do you transfer ownership?
• Should your Tenant Buyers to take title?
• How Do Land Trusts End Up On Your Credit Report?
• Should Land Trusts Open A Checking Account? If so, whose SS# or EIN should be on the account?
• Getting Utilities turned on when you can’t prove or don’t want to prove ownership.

Inner Game Trust Strategies

• Recognizing the difference between getting the forms right and intentional strategies to confuse
• Preempting Non-Authorized Actions by Your Chosen Trustee
• Insurance Issues when dealing with YOUR Trust
• Creating solvable title gaps and why you may want to
• Would it make sense to intentionally file a judgment against your trust?
• Your Honor I can truthfully say “I don’t own that property.”
• How to Incorporate Financing Devices into Your Trusts…
• Avoiding Local Governmental Heat: a story of pain avoidance
• Who are you representing?
• How to avoid the public “Shock of Extreme Profit” as a fellow realtor
• “Stacking The Deck” to avoid lawsuits

IRAs and Trusts
How Your IRA properly owns, loans to, or interacts with trusts

Don’t Miss the Special Trust Bonus Class – Seats are Limited – Register Today!

Employee Spotlight

The Top Ten With…

There are many people behind the scenes that drive the engine to make our companies successful. In our continuous Top Ten series, this month we turn the spotlight on one of those people so you can get to know them better. This month the spotlight is on one of our key members of our team, our Student Liaison, Czarina Harris.

How long have you been with Colonial Funding Group/NoteSchool?
I started as a mentoring student in August 2010, volunteered for 7 months, and then was officially hired as a freelancer in June 2011.

What is your role at Colonial Funding Group/NoteSchool?
I’ve worn a total of 8 “hats” here at NoteSchool. Currently, I am the creator and admin of the membership site and student liaison.

Favorite Color?
I can’t choose between green or purple. Do I get bonus points if I say green since I work for NoteSchool?

Favorite Food?
Ackee and dumplings (Jamaican).

Favorite TV Shows?
I don’t watch television.

Favorite Movie of all-time?
Who has just one?! Top three: Notting Hill, Brown Sugar, and Ocean’s 12.

Last Book You Read?
Hormegeddon: How Too Much Of A Good Thing Leads To Disaster by Bill Bonner

Favorite Sports Team?
I don’t watch sports. I get too competitive, and, although not diagnosed, I’m sure it raises my blood pressure. Besides, sports are on TV, which I don’t watch anyways.

The 3 people you would like to have dinner with (dead or alive)?
You mean two people, right? Because my mom is still alive and would kill me if I didn’t say her first. The other two would be Paul the Apostle, to ask him details about his ministry and to know more about the man who wrote so much of the New Testament; the last is Oskar Schindler because he used his wealth in one of the most benevolent acts of the 20th century.

What do you like best about working at Colonial Funding Group/NoteSchool?
I had to think about this one for a minute, because my initial response is the fact that I’ve been afforded my freedom and independence which I hold dear, for sure. But any freelancer could say that. If I really thought about it, I’d have to say it’s the intrinsic value of NoteSchool itself. A company that constantly strives to be inclusive rather than exclusive and a leader that isn’t afraid to make changes and improvements, even if they are uncomfortable, is a lesson that reaches far beyond the business world.

Capital Markets Update

Fairway America Announces…

Fairway America Announces $1 Million Capital Commitment to Colonial Impact Fund-II, A Newly Created $100 Million Offering Being Listed on the SBREfunds.com Crowdfunding Marketplace

Fairway America LLC engaged by Colonial Capital Management to structure and help create new fund, handle fund administration services, and invest $1M from Fairway’s proprietary funds

Fairway America, the nation’s leading authority on small balance real estate (SBRE) pooled investment funds, today announced Fairway America $1 Million commitment from one or both of its two funds, Fairway America Fund VI, LLC and Fairway America Fund VII, LP, to Colonial Capital Management’s new $100 Million Colonial Impact Fund-II (“Colonial”). In addition, Colonial will be listed on the SBREfunds.com crowdfunding marketplace, which focuses exclusively on pooled fund offerings and information in the pooled real estate investment space. SBREfunds.com is building the world’s leading community of fund managers, and Colonial’s listing will generate immediate exposure to high-net-worth accredited investors seeking opportunities in real estate asset-based pooled investment funds.

The recently launched platform provides accredited investors with a secure environment to network with one another through a private forum, consume educational content that helps them understand how to evaluate investment opportunities, and allows them to anonymously review and select fund investment opportunities listed inside the marketplace.

“The SBREfunds.com marketplace is the only web portal focusing exclusively on blind pool real estate asset based funds,” said Matt Burk, CEO of Fairway America. “Beyond experience and strategies, we provide SBRE entrepreneurs and fund managers all over the United States with the tools they’ve been searching for: a crowdfunding marketplace, education, information, peer feedback and options, all for SBRE funds only. We have a lot of respect for the Colonial Capital team and worked with them closely to help them architect a fund structure that we believe positions them to raise capital effectively. Also, our role as their fund’s third-party administrator enables us to help them track and report their performance accurately as well as perform other important back office functions.”

In addition to Fairway’s $1 Million initial commitment, Colonial’s newly launched $100 Million investment fund will be listed on SBREfunds.com’s funds-only marketplace. Colonial focuses on acquiring performing, non-performing, and sub-performing real estate loans, originating new real estate loans, and acquiring property directly, including distressed properties and performing rental properties. The Fund intends to focus on single-family residential properties, but will also consider manufactured homes, land, multifamily and commercial property types.

The principals of Colonial Capital Management are Eddie Speed, Bob Repass, Ryan Parson, and Charles Mangan. Each principal has years of real estate investment and asset management experience in the discounted and distressed note space.

“Our strategy for the Fund is to capitalize on distressed real estate asset based opportunities that produce attractive risk adjusted returns. By investing in a variety of U.S. real estate related asset classes, the fund is able to diversify its portfolio holdings amongst several strategic geographic markets,” said Parson. “Fairway America has been instrumental in the Fund’s structure and creation, ensuring that all progress and activity are tracked properly. Through Fairway America’s expert administration services and our listing on SBREfunds.com, we believe we are now in the best strategic position to raise capital effectively.”

“We conduct what we think is the most rigorous investor screening we know of anywhere, meaning we do not approve just anyone claiming to be an investor,” says Burk. “They represent their accreditation, and, although we do not verify it, we try to make sure they are not an SBRE entrepreneur posing as an investor just to get access to the materials for their use which sets us apart from the rest of the world’s crowdfunding platforms,” says Burk. “With SBREfunds.com, we have made it our mission to be the very best in real estate asset-based pooled investment funds and to create the world’s leading community of fund managers and high-net-worth investors active in pooled investment funds, allowing them to create strong connections with one another.”

Colonial Capital Management has accepted an invitation to present at Fairway’s Small Balance Real Estate Investment Summit at the Hyatt Regency Spa and Resort at Gainey Ranch in Scottsdale Arizona, on April 9th and 10th. This invitation-only event is open to accredited investors interested in the Small Balance Real Estate space.

Quote of the Month

“If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” – John Quincy Adams

Survey Says…!

Connect With Us

Are you on Twitter? If so, be sure to follow us on Twitter @NoteSchool and @ColCapMgmt, if not, why not?