I get a lot of deals sent to me where they present equity cushion based on ARV. Unfortunately, I can't calculate equity off anything other than today's value. If the house is worth 200K today, reno costs 50K, ARV is 300K and the loan request is 225K. We're not at 75% LTV. We're at 112.5% LTV.

I had someone reach out about a lending opportunity in OR. These were the stats she gave me: Purchase Price: 385,000 Rehab: 17,000 -80,000 ARV: 550,000-570,000 Total Spread: 570,000 - 17,000 - 385,000 = 168,000 It looked good, but I had to decline...because there was no buffer, she's taking the high end of ARV and low end on the rehab. Costs to sell were not included, nor were there carrying costs for the life of the rehab. Updated Numbers: PP: 385,000 Rehab: 80,000 Buffer: 16,000 ARV: 550,000 Carrying Costs: 23,500 Cost to sell: 55,000 Total Spread: -9,500 This was a no go.

Solo 401(k) considerations The group covered when a Solo 401(k) makes sense, including self employment income requirements, compliance rules, and administrative responsibilities. A real example showed how plans can be unintentionally disqualified if details are overlooked. Health and recovery realities There was an open discussion around recovery after a serious health event, focusing on medication management, nutrient interactions, and the need for consistent monitoring with complex medical situations. Accounts receivable backed lending The conversation explored short term loans secured by accounts receivable and how they differ from real estate backed lending. Topics included borrower quality, verification of receivables, risk controls, and where this type of lending may or may not fit. Business acquisition paths Different strategies for acquiring service based businesses were discussed, including improving underperforming companies versus building a broader portfolio. The emphasis was on being clear about strategy and not overcomplicating early decisions. Simplifying under pressure A real scenario highlighted the risks of juggling too many deals at once. The group focused on narrowing scope, stabilizing cash flow, and simplifying efforts during high stress periods. Connections and introductions Several points in the discussion led to potential introductions between members, reinforcing that these calls are not just educational but also a place where relevant connections are made. Overall takeaway The recurring theme was focus, risk awareness, and thoughtful decision making, combined with practical peer support and relationship building.

Most people think their 401(k) is locked up until retirement.The truth? You can legally use it to start or buy a business—without paying taxes or penalties. I put together a short guide that breaks down exactly how it works and what to watch out for. Inside you’ll learn: ✅ How the structure actually works ✅ What kind of company setup the IRS requires ✅ The step-by-step funding process ✅ Common mistakes that trigger penalties ✅ A simple checklist so you can move forward confidently If you’ve ever thought about using your retirement funds to build your own dream instead of someone else’s, this will open your eyes to what’s possible. Download the ROBS Starter Guide Not sure if you’re ready to start a business but want more control over your investments? 👉 Check out the SDIRA Starter Toolkit to see how people use their retirement funds to invest in real estate or lending instead of Wall Street.

This early 2026 article (still relevant industry-wide) details wealth managers suing RE entities over a $1M+ Ponzi using fake notes & "quick flips." Funds diverted to fake early returns. Key Lesson: Do not chase the shiny high yields. Safety Basics: - Perfect your liens first. - Demand vetted operators + clean books. - Prioritize consistency over chasing 20% unicorns—8-12% compounds safer. - Trust your gut and do not try to make the numbers work Your take? Biggest red flag in deals? Drop below. Feel free to reach out to learn more how Jon and I structure deals for max security. Article, here