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Most of us know about the value of private lending and are always in search of more. Now more than ever, we need to utilize these types of funds as the traditional mortgage industry has been turned upside down. Banks and lenders are asking for ridiculous criteria and holding on to their funds rather than lending. While this can not continue forever, it makes it very difficult to do deals right now with the lack of liquidity, assuming you utilize leverage.

So the questions become, how do we find more private funds, how do we market to them, how do we negotiate the terms and conditions, and how do we make sure we protect ourselves and the private investor from risk, loss, or legal issues. The answers are not easy, but can be done properly with the proper professional assistance, marketing plan, and having a prepared and professionally put together presentation.

We at Nationwide Property Investments, LLC are aggressively looking for additional private funds so that we may take advantage of the best buying opportunity in our lifetime. If you have or know someone who has liquid funds to invest and are looking to earn high yield and safe returns, please contact us right away. The stock market is dropping dramatically, reducing most portfolios by over 35% this year alone. Get out now while you still have a portfolio and hedge against further losses.

If you are currently wanting to use private funds and need assistance on accomplishing this, please contact us as well. We can answer your questions, get you started, and keep you within the legal aspects of this venture.

Nationwide Property Investments, LLC is a Real Estate Investment Company, investing in nearly every aspect of real estate. They educate others and bringing sound investment opportunities to their investors. Join the investor list at www.nationwidepropertyinvestments.com as well as their "members only" opportunity.

We now have our real estate investment system in Las Vegas, NV ready for our investors. This is a new and innovative program Nationwide Property Investments, LLC has developed for their investors. You can pick an area, pick the size, pick your price points, and pick all your criteria, then we go get it for you at extreme discounts and in many cases, for less than you could buy at REO listings. You NEVER pay more than your max price point and the property must meet all the criteria before we buy it.

This system has proven to be a valuable asset to a select number of original participants and is now available to ALL of our investors. Join our investor list on our website and email us the criteria and specifications you are interested in. This system is in place in other areas as well, so contact us with your questions or criteria.

We have the entire team in place including, but not limited to, lenders, property management, appraisers, title companies, handyman services, contractors, other service providers, and home inspectors.

www.nationwidepropertyinvestments.com or call 800-469-2260

WHAT IS THE CORPORATE VEIL AND HOW CAN IT BE PROTECTED?

Written by KKO Lawyers

One of the primary advantages of forming an entity for your business is that the business owners are not held personally liable for the debts or liabilities of the company. In other word, creditors can only pursue the entity's assets and cannot reach the assets of the business owner. That line of protection, which separates the company's liabilities from the business owner's personal assets, is commonly known as the "Corporate Veil". Under some circumstances, if the owner does not follow the proper procedures, a creditor can pierce the "Corporate Veil" and reach the personal assets of the business owner.

While the law may differ slightly from state to state, there are a few common ways in which a business owner can lose the protection of the Corporate Veil.

1. ALTER EGO The most common way that the Corporate Veil is pierced is when the business owner is considered the "alter ego" of the company. This typically occurs where the company ignores the corporate formalities such that it is not recognized and treated as a separate entity by its owner. A short list of the formalities that should be followed are listed on page two of this Newsletter along with a list of recommended procedures.

2. FRAUD The second most common way in which the Corporate Veil is pierced occurs when a business owner commits fraud. This could be as simple as forming an entity, and then insuring liability in the name of the Company with no intention of repaying those liabilities. The business owner cannot rely on the protection of the Corporate Veil as a way to avoid payment for the liability.

The main principle here is that you cannot use the Corporate Veil to shield liabilities which you never intended on repaying. If ever litigated, the court may simply see the judgment creditor as being defrauded by the company.

3. GROSS NEGLIGENCE Another common way in which the Corporate Veil can be pierced occurs when the business commits acts which are grossly negligent or reckless. Gross negligence occurs when the business intentionally fails to perform duties or commits reckless acts. Ordinary negligence can arise from simple inadvertence. However, ordinary negligence is not enough to pierce the Corporate Veil. In sum, if a plaintiff can show that the business committed reckless or crossly negligent acts then a court may allow a plaintiff or creditor to pierce the corporate veil.

STEPS TO PROTECT THE CORPORATE VEIL

There are a number of recommended procedures that should be followed to ensure that your Corporate Veil is protected. By following these recommended procedures, you do not face personal liability for the operations and liabilities within your business.

1. Maintain an active status for your business entity with the states you are authorized to do business in. This usually requires a simple filing and payment of an annual fee to the State. Failing to stay current with the State will cause your entity to become in-active or delinquent and the state will assess you additional penalty fees for not meeting your annual deadlines. Moreover, if the entity is dissolved by the state, your protection ends on that date.

2. Own your business assets (e.g. real estate) in the name of the entity and execute all contracts and legal documents in the name of the entity. This may require new deeds or updates to contracts.

3. Hold annual meetings and complete annual minutes. This is required a requirement for Corporations and while it is not required of Limited Liability Companies ("LLC") or Limited Partnerships ("LP"), most practitioners still recommend that you follow through on these formalities.

4. Create letterhead and business cards for each business operation and use them. You want it to be clear that you are acting on behalf of your company and not in an individual capacity.

5. Maintain a separate checking account for each company and don't co-mingle business assets with personal assets. Using your personal account for business activities shows complete disregard for the Corporate Veil since you are not treating the company as a separate entity from the business owner.

6. Receive business income in the name of the business and pay for business expenses out of the business bank account(s).

We are looking for official sponsors for our live radio show "Creating Wealth Through Real Estate". The show educates and informs the public on a variety of topics which relate to real estate and real estate investing. It includes retirement planning, tax planning, buying and selling techniques, and much more. We have regular guest speakers who are some of the sharpest minds in real estate.

The sponsorship would include internet advertising on both our website as well as the radio station website (the largest internet traffic commercial website in the area), commercials each week on the show, guest speakers each month, and much more.

Please contact us for details and additional information on this limited opportunity. Only one sponsor for each area of business (one realtor, one accountant, etc.) Call us at 800-469-2260 or email us at info@nationwidepropertyinvestments.com

Supreme Court Rules That Creditors May Not Seize IRA Assets in Bankruptcy Proceedings

In a huge victory for managed and self-directed IRA owners everywhere, the U.S. Supreme Court ruled last week that IRAs receive Federal Creditor Protection. This means that creditors cannot seize assets in an Individual Retirement Account.

The Supreme Court ruled unanimously that IRAs should join pensions, 401(k)s, Social Security and other benefits tied to age, illness or disability, that are afforded protection under federal bankruptcy law and thus shielded from creditors in bankruptcy proceedings.

Until recently, IRA protection was covered by state laws, which varied to a great extent on coverage provided. This ambiguity led to a great deal of confusion and uncertainty for IRA owners wondering how their assets were protected from creditors.

The case before the Supreme Court was heard because of a lower court ruling against IRA protection based on the faulty notion that since investors can make IRA withdrawals at any time, IRAs are similar to savings accounts, which are unprotected from creditors under bankruptcy law.

Justice Clarence Thomas, writing for the Court, said a bankrupt Arkansas couple was entitled to keep more than $55,000 in retirement savings from creditors. He reasoned that IRAs are benefits tied to a person's age under the federal statute because a tax penalty is imposed if a person makes withdrawals before age 60.

Interestingly enough, the court did not choose to address the topic of whether very large IRA accounts would be protected under the federal bankruptcy code. The code has a provision stating that certain assets (such as retirement plans) that are deemed to be "reasonably necessary" to support a debtor and his/her family are protected from creditors.

The uncertainty of what is "reasonably necessary" means some assets in extremely large IRAs might not be protected. Having said that, this issue will surely be brought to the court's attention in the future. However, for the time being, the vast majority of Americans will not have to worry about creditor attachment of their IRAs.

The ruling comes at a time when IRA assets are set to reach the $3 TRILLION mark and, for many Americans, the IRA has become their most significant retirement asset. Having the same protection in bankruptcy that workers receive for their 401(k) plans and company pensions shields a nest egg relied upon by millions of Americans and provides another layer of financial protection.

October 17, 2008

"“How The Economy Is Affecting Real Estate Investors”
By: J. Scott Scheel

Lately, we have been hearing about the need for the financial industry bailout, that the US is in a recession, and that times are tough.

The reality is that what is happening in the financial industry today is really not any different from what was happening in the 1980’s. Commercial interest rates ranged between 8-9%, banks were merging everyday, and everyone was worried about how they would get their next loan funded.

The real problem facing America is the devaluation of the dollar and the increased costs of energy. What most people do not realize is that these factors can affect us as real estate investors in many ways.

Increased Operating Costs
First and probably the most obvious way we are affected is through increased costs. Real estate investors have felt the pain of increased costs to operate their properties over the last several years.

Heating costs have tripled over the last five years and crude oil has gone from $25.00 a barrel in 2003 to $146 a barrel in June of 2008, and has now settled to around $110 a barrel in September of 2008.

Oil is used in so many aspects of our lives from transportation, to manufacturing, to heating, so it is easy to see why living expenses have increased so substantially.

This, in conjunction with the devaluation of the dollar, has also increased the cost of operations.

We have seen these increased costs affect utility costs. It has affected our costs for repairs and maintenance since construction material costs have increased along with the cost to transport the goods. Finally, our overall supplies and office expenses have increased.

These increased costs have affected the bottom line, decreased our cash flow from operations, and decreased the value of our properties.

Since the value of the dollar has dropped, Americans can now buy less overseas than they used to be able to. In 2005, the Euro was worth $1.22 according to the Federal Reserve.

This summer the Euro was worth $1.58. This means there was a 28% increase in all merchandise manufactured in Europe and sold in the United States. In other words, if you went to Europe, it would cost you 28% more money than it did in 2005. However, it would be a 28% savings for Europeans buying US-made goods and products.

Fewer Traditional Funds Available to Borrow
With the decreased value of the US dollar, investors who used to invest their cash in the United States have switched their investment preference. Scarcity of funds means that just getting a loan will be more difficult and rates will be higher. The banks will be lending to only the best of the best prospects.

More foreign investors will invest in US assets. They will be able to get more for their money here since the Euro and the Yen will have more buying power. The scarcity of funds will also force some lenders to leave the real estate market all together.

Changes to Bank Loan Terms
Another potential issue is that lenders may shy away from any sort of fixed-rate loan in an effort to hedge against any changes in interest rates.

The banks do not want to find themselves in a situation where they are paying investors 9% for their funds, but have long-term loans funding real estate deals locked in at 6-6.5%. We will see lenders offering variable rate loans and starting at a little higher interest so the banks can protect themselves from market rate fluctuations.

Lenders will also decrease the terms at which they allow real estate investors to finance the loan. They will do this as another step to hedge against changes in the rate market.

Instead of long term loans, loans will mature in three years or shorter, forcing borrowers to be sure they stay on track with their cash flow and giving the banks the flexibility to change their investment strategy if necessary.

Last, lenders will decrease the loan-to-value in what they lend. This will protect the banks from declining values on properties due to lower NOI levels and the decreased value of the dollar.

For example: Today, if they lent at an 80% LTV on a $500,000 property, they would have a $400,000 loan. If the value of the property decreased by 10 %, the new value of the property would be $450,000. Now, the bank’s LTV based on the new value would be 90% and far more risky.

Not all Doom and Gloom
Even given the above-mentioned factors, all is not doom and gloom for real estate investors. If you follow the principals that have been successful, you know there are still a lot of deals out there that are yours for the taking.

You can buy properties in this market at prices lower than you may ever seen before. Also, rates are still low, averaging in the 6.5-7.5% range through traditional banks. This means that if you are a qualified buyer, you can finance your property for low interest rates and have a lower debt payment to service.

Many lenders have adjusted rate indexes to go off of the international indexes such as LIBOR (the London Interbank Offered Rate) to make their mortgage-backed securities easier to sell on the international market.

By using the Opportunity Evaluator Software, you will have the confidence of knowing you are buying your properties correctly, not over-leveraging or overpaying for them, which will allow you to withstand the changes in the current market place.

The above article was written by Scott Scheel who is a trusted advisor on Nationwide Property Investments' team of professionals. He specializes in commercial real estate investments and some of the strategies and techniques we use today were taught to us by Mr. Scheel.

Today on our radio show, one of the subjects we spoke about was motivation and how important it is not only in the real estate world, but also in life. I have included some sayings which Michael and I like very much, not only as just phrases or metaphors, but to actually apply then to life and to your real estate investing goals. So here they are:

The rich act in spite of fear while others allow fear to stop them.

Rich people do what others think about doing.

Comfortable does not equal growth.

The greatest mistake in life you can make is to continuously be afraid you will make one.

These phrases point out the necessity to get over the "fear hump", jump off the fence, and take action. Many people say that they are afraid to make a decision to move forward investing in real estate (or anything else for that matter). What they do not realize is that they HAVE made a decision - that decision was to do nothing. Now, they may not lose anything per se, but they most certainly will not gain or grow either. Therefore, having the motivation to get paste fear and all the negative comments from others is the only path to success. Successful investors are just that because they take action, not because they "know secrets" everyone else does not. That is just guru propaganda. While education is very important, getting experience is where you will grow rapidly.

How does one get experience you may ask? Start with some education and then align yourself with a mentor or team members who can guide you to the path of success, which is taking action! I am more than willing to "be that mentor" or "be that team member" and help you take action. It will start with talking about your specific goals and then deriving a plan or path, if you will, to get you to that destination. This will be accomplished by helping you make the right investment choice for you, holding your hand through the process, continue that assistance for as long as you own the investment, and help prevent you from making the "big" mistakes which can cost others their investment. The only thing you need to do is to pick up that phone or type out an email to TAKE ACTION!

William Barnard - Managing Partner, Nationwide Property Investments, LLC                     Thursday, September 04, 2008

Here is an article I thought was of vital importance to our investments in the Metroplex. It is one of many professional articles providing documentation on the large growth of population, the strong economy, and the rapid job growth experienced in Fort Worth. These are the main reasons why we at Nationwide focused on this area for our investments and believe you should to!

Editorial of the New York Sun, July 25, 2008

As the Congress considers whether to follow President Bush's lead in repealing the decades-old moratorium on drilling for oil on the Outer Continental Shelf and in the Arctic National Wildlife Refuge, it might want to take a look at what's happening in the Barnett Shale region in TEXAS. The recent history of the Shale, where innovative energy companies have turned a once impenetrable rock formation into the most important natural gas source in America, provides a testament to the professional competence of the engineers and geologists who find and obtain the energy resources that make America's economy possible. It also illustrates just how irrational the Congress's persistent opposition to drilling has become.

In addition to being the largest onshore natural gas field in America, the Barnett Shale sits directly on top of the Dallas-Fort Worth metropolitan area, which is home to 6 million people. Companies are drilling for natural gas underneath schools, underneath the Dallas-Fort Worth International Airport, and underneath residential communities, and the process so far has been a resounding success. The Shale is producing at rates that have exceeded all expectations, and it's being done in a major American city without disturbing the residents who live there. Surely the reindeer in the Arctic National Wildlife Refuge, on whose behalf much of the resistance to drilling in that area is based, are as amenable to the process of drilling for resources as the citizens of Fort Worth.

Meanwhile, the Shale's economic impact on central Texas is a reminder that oil and natural gas are not just fueling energy addiction and pollution; these resources also create wealth. While the national economy is suffering, central Texas is experiencing a veritable boom. The annual economic impact of the Shale is $22 billion, according to a study by the Perryman Group. The Shale has also generated nearly three-quarters of a billion dollars in local and state tax revenues, and has created nearly 100,000 jobs with more on the way. It's made a few billionaires, more than a few millionaires, and lifted thousands of fortunate men and women into sudden affluence. Would not a rational Congress rather these rewards accrue to Americans rather than our enemies in the Middle East?

Only a few years ago, drilling for the gas in the Barnett Shale was considered virtually impossible. "It is far more complicated to extract natural gas from shale than from other sources of natural gas, like sandstone," a spokesmen for Devon Energy, Chip Minty, said. Devon Energy has been active in the Shale since 2002, but until recently other companies have shied away from the area. Exxon Mobil, for instance, was late in buying an interest in the Barnett Shale even though its global headquarters is only a few miles away. Geologists and energy companies have known about the vast natural gas deposits in the Shale for decades, but the tight, almost impermeable nature of shale, a black rock formed from organic deposits 300 million years ago, made drilling there economically infeasible. A few decades of trial and error and a couple of visionary technological innovations later, and the Shale has become the most important natural gas field in America. The history of the Shale, Mr. Minty said, "shows the potential for energy resources across America."