What to do During a Perfect Storm?

This short video above captures how our group has been investing and how the market is poised to provide the greatest opportunities of our lifetime.

For most of my long-time investors this video is a recap.  For others not familiar with my real estate investment strategies, my hope is this will help you navigate in this quickly changing economy.  The story of how banks navigate through recessions is best told below.

The Bank Freighter

Imagine for a moment, that our big financial institutions (Banks) are big slow-moving freighters sitting out in the ocean.  During periods of calm seas, it is easy for the large ships to load more and more cargo containers full of loans.

When unexpected economic storms create massive ocean swells, it threatens the whole fleet.  They are forced to find a safe harbor or risk their top-heavy ships sinking.  Once ashore, they now have to unload some of their overweight cargo.

After the storm of 2008, the freighters dumped their cargo by the thousands all over the shore for real estate brokers and auctions sites to sell.  It took until 2012, before most of the mess was cleaned up by savvy investors.

The biggest fire sale in real estate history was followed by the biggest backlash and change in the way the banks and financial system operates.

The biggest fire sale in real estate history was followed by the biggest backlash and change in the way the banks and financial system operates.

When the banks came to shore, they were met with angry natives with lots of questions like: Why is my home being foreclosed and you are the one receiving the bail out?”

The banks then decided that during the next storm they just wouldn’t come to shore.  That solved the problem of having to explain themselves. However, what to do with cargo when they are overloaded, and another storm threatens?

They now sell their cargo containers, called mortgage pools, to investors way offshore from the view of the prying public.

Hedge funds and private investor groups dock their speed boats full of money along side the freighters and pick off the cargo at a significant discount.   These investors then bring the loans back to shore and now have their hands on the best investments in the world.

During the last recession, I was in line like every other investor on the shore.  My only advantage was speed.  I was quick to build a network of Realtors that worked the foreclosure market.  Once the freighters dropped off their stinking cargo, I was one of the first to see it and bid on it.  I still lost out on a ton of unbelievable deals.

It never occurred to me to go right to the freighters themselves and avoid all the public competition and red tape. It was really a hidden world controlled in-house by banks, lawyers, hedge funds.

But this time around in 2020, we have a more level playing field.  The last recession opened this hidden world to the average investor.  When the banks were overwhelmed with foreclosures, they had to look to outside service companies.  We now use the same service companies the big banks use and have the software to manage loans.

During the last three years, I have been fine tuning my own financial speedboat and have equipped it with the best equipment for handling rough financial seas.  I’ve done a few trial runs to the freighters and picked up light cargo that we took to the shore to sell.

A perfect storm has been brewing over the last 10 years.  Banks have again overloaded their cargo and the waves are growing much bigger than last time.  The greatest wealth transfer in history is about to take place.

We need a bigger speed boat to be able to take off as much cargo as we can.  We need capital partners to do that.  Our investors will own a piece of the boat, the operation, and the cargo.

While the rest of the real estate investors are sitting on the shore waiting to take their order of half off multifamily, we will be meeting the freighters out at sea. There the best opportunities will take place.

Once we are safely back on shore and done unpacking & sorting the cargo, we will be left with the best loans and investments on the planet.  Investments secured by equity that you can count on to build a legacy or pay for your daughter’s future college education.

You can't control Wall Street but you can control Main Street. It's time to get back to simple investments secured by brick and mortar real estate. 

It's better to be the bank....Click here for the "Top 10 Reasons to Invest"

Interested in hearing more? Set up a time to talk click here.

Kind regards,
Kyle Zimpleman, Managing Member

Real Estate Bio

We identify opportunities to acquire pre-foreclosure, bank owned, and performing loans at pennies on the dollar from our network of banks and hedge funds.  This fund provides a vehicle for investors to participate in off-market real estate long before its available to the public.  This translates into above average returns to our investors and provides peace of mind that their investments are secured by equity in real estate.

 

The straightest path to wealth: “The holy grail of investing”

Money doesn’t grow on trees, but it does create a stream. Finding the right income stream is what we are all after.  A simple straight stream that doesn’t have winding bends, boulders, and rapids to navigate.

Right now, investing in the stock market feels like a Class 5 rapid, instead of a slow and steady stream. It’s exciting if you’re 20 yrs old and your only possession is your backpack.  However, its terrifying at 65 yrs old and everything you have worked for your whole life is in the raft.

Whether you’re investing in McDonald’s or an apartment complex, you’re picking an income stream that at the end of the stream there is hopefully a profit. There are millions of ways to create an income stream.

However, there are very few that don’t have multiple variables that create excessive risk.  Especially in the volatile boom & bust economic market we are facing in 2020.

The key is to find investments that have less variables, that in turn, create a more reliable and predictable income stream.  

The picture above is a controlled manmade stream (aqueduct).  They built the aqueduct so they could have a predictable stream.   A controlled and predictable income stream is the "Holy Grail of Investing".  It's the one with the least amount of variables with the shortest path to success. 

Investing as the lender (AKA Being the bank) is the straightest income stream with the least number of variables.  The heart of the investment has only three variables:

1.) The promise to pay (borrower)

2.) The collateral (property or something of value in case they don't pay)

3.) The lender (The money exchanged)

The risks are mitigated at the start of the investment through due diligence and you only have to manage the downside if there is ever one.

To put it another way, it could be years of a reliable income stream before you have to make any other decision.  Meanwhile, your investment is slowly becoming less and less risky. 

Why? Because the borrower is paying down the principal owed every month, which increases the amount of equity (difference between collateral value and the loan amount).

You can't control Wall Street but you can control Main Street. It's time to get back to simple investments secured by brick and motar real estate. 

It's better to be the bank....Click here for the "Top 10 Reasons to Invest"

Interested in hearing more? Set up a time to talk click here.

Kind regards,
Kyle Zimpleman, Managing Member

Real Estate Bio

The Suppression Recession

What are the unintended consequences of suppression?  This seems to be the question on everyone's mind.  No government wants to force their economy into a recession.  However, that is exactly what they had to do.  We don't need to go into everything that has led up to this point in history. What we need to do now, is start to prepare. 

But how do you prepare for something that has never occurred before in our lifetime?

My only answer is try to simplify things and quiet the noise. The simplest way for me to illustrate this is through graphs and charts. Not through headlines or the news.

What did we know before going into this pandemic? 

We knew the American economy was on the longest expansion in history.  We knew unemployment was at an all time low. 

We knew nothing can last forever...

I have used this graph above in separate articles. However, it's by far the best graph to illustrate markets and economics as simply as possible. The Market Cycle Graph below illustrates both the economic and human emotional impact we place on investing.

Based strictly on this graph below, we are in the Fear Stage.  We still have a way to go before we can safely decide on the best investment approach to take.   

In fact, real estate at the moment hasn’t declined.  It may be better categorized in the Anxiety or Denial Stage

Back in 2008, I wasn't aware that markets had cycles. 

To be honest, I wasn't aware of a lot of things that I am aware of now.  The last recession taught me valuable lessons after making very expensive mistakes that I will not repeat again.

The biggest lesson was how fear can paralyze and distort reality.  For me, fear was not only what I was facing but the fear of what may come.  During the 2008 recession, I was overleveraged and completely unprepared.  I had never experienced headlines of Detroit going bankrupt and a Mortgage Meltdown.

What I also learned first hand was Fear is one of the strongest human emotion.  Its drives us to flight or fight.

Last time I chose flight, this time I choose fight.  In 2010, I panicked and sold all real estate investments that had equity.  As history will tell you, that was a mistake. However, at the time, things were not appearing to get better.  My first child was on the way, and I felt stuck.  I wasn't in any financial shape to fight. 

(courtesy of the PBC)

I was an out of shape boxer forced into a ring with no experience.  To my credit, I did make it a few rounds.  It wasn't until middle of 2010, after staring into the abyss for two years, that I began to sell off assets.   

Instead of reading books about market cycles, I was reading books by Harry Dent titled The Great Depression Ahead”.  This book was not good bedtime reading or if you had $3M in real estate valued at half, like I did.  I still wish I had never picked up that damn book.  

I’ve been preparing for a market correction, mostly in real estate since 2017.  I had a property 1340 Emerald, Grand Rapids MI that I purchased sometime turning the crash for $25K.  In 2015, the tenants had moved out and trashed the place.  Therefore, it was time to try to sell it for $55K.  I received one offer for $40K cash.  I didn’t take it.  Two years later, and after another tenant clean out, I put it on the market and had 7 offers and sold it for $92K cash.

TIME TO SELL!

I convinced my real estate investor partners to start selling and by the end of 2018, we had sold all our whole portfolio.  

You could say we started training for the financial fight ahead.  We became lean and mean.  This time we are ready!

(courtesy of the PBC)

Over the last 3 years, I have been creating a network of downline companies and servicers that will streamline our investment operations efficiently as possible.   We have cash investors waiting to deploy funds.  My investment group use no financing leverage.  We do not owe any bank money.  We are the bank. 

The plan from the start was to expect a downturn.  Now that it's officially here, it's time to get ready for the fight.  Or in better words, get ready for the biggest wealth transfer in history!

It's my opinion that the last quarter of 2020, we are going to see opportunities in real estate we have never seen before. 

Ready to learn more?  Let's talk and set up a phone call. calendly.com

Kind regards,
Kyle Zimpleman, Managing Member

Real Estate Bio

How do you protect and grow your wealth during a recession?

Although the flag is in the picture above is Canadian, it’s a global recession (depression) that we have entered.  The unintended consequences of social distancing is far reaching and the future outcome is still unknown.  

It’s a daily struggle to try to sift through the fear mongering to find the true underlying facts.  The fear from the news is in the forefront of my mind.  However, whispering in the back of my mind is the quote above from Warren Buffet.  

They say history repeats itself.  The Great Recession, which is still fresh in my mind, seems like a great place to start looking for answers. 

Below is a great graph illustrating the correlation between the stock market and the real estate market over the last 14 years.  

We know now that the stock market bottomed in 2009 and real estate bottomed around 2012.  As you can see there is a lag time between the two.  The reason is liquidity. It can take up 1 year or longer to complete a foreclosure.  However, it takes seconds to sell and buy stocks. 

In my opinion, the real estate market feels more like late 2007, before things really got ugly for real estate. Back then, I was still blindly purchasing real estate.  I remember bidding on a property and being surprised that my offer was accepted.

It turned out, I was the only offer.  

I’ve learned from my mistakes, this time around.  Our investment group has primarily been a seller of real estate since 2017.  Whether or not our government has learned from its previous mistakes is yet to be determined. 

Our government and central banks around the world have proven to be much quicker this time around on printing money.  It’s almost beyond comprehension the scale and size of that much money flooding the financial system.    

The picture from above illustrates only 1 Trillion in $100 dollar bills.  Our government has already rolled out the 2 Trillion CARES stimulus package.  Many experts believe that the total amount may surpass 5 Trillion in stimulus by the time we are done.

All while our National debt grows over 23 Trillion and counting everyday!  

I don’t think anyone knows what this will do short or long term (Hyperinflation, Deflation, Stagflation).  I also don’t think any central bank or government can stop a natural market cycle of ups and downs.

However, they be able to temporarily alter or slow the natural process.  In the long run, it’s like saying that we can somehow avoid winter and always have summer.  It goes against nature and against economics.

We have had a long hot 10-year economic summer. Now as things cool off, it’s time to work smarter.  We need something harder and stronger that has weathered the face of time. 

The buildings above were built long before I was born and will be here long after I am gone.  They have endured war, famine, plagues and still they stand.  They have been the ultimate protectors of wealth for those that understand its value.  

I love brick and mortar real estate because with the right knowledge it can be controlled. I can physically see it and touch it.  It offers a timeless way to grow rich slowly.  I also like investing in mortgages which is directly secured by brick and mortar real estate, for the same reason. 

During the last recessions recovery, our group’s assets accidentally benefited by the governments quantitative easing policies and lowering of interest rates that created artificial inflation.

When we purchased these college rentals, I had based my long-term projections on a 3-5% appreciation model.  The intent was to pay down low balance mortgages and slowly over time increasing cash flow to become independently wealthy.  What I didn’t expect what the rapid increase in value to the point in 2017-2018 we basically had no choice but to cash out.

No one knows exactly what will have in the future.  However, nothing has been a better store hold of wealth than real estate.  Our group will continue through this down cycle to identify opportunities for investment.   

Economic and investment fundamentals will always prevail in the long run.  Below is a link of our investment groups history and strategies for 2020. 

Expand Capital Group 2020 Strategic Overview

Interested in learning more? Let’s set up a time to talk.. Click Here

*If you found this article useful, please feel free to share.

Kind regards,
Kyle Zimpleman, Managing Member

Real Estate Bio

Take back control of your finances…Be the bank.

When I think of “safe and secure” I still envision a bank vault with armed guards... 

However, banks don’t operate this way anymore.  Most banks don’t even have a vault.  Why?  Because their money is everywhere, not somewhere.  Almost everything you see from a house, building, automobile, or farm is funded and essentially secured by a bank loan.

Therefore, if you want financial freedom you need to think and act like a bank.  But, not like a bank wants you to think…  Banks want you to give up your hard-earned money for a return of 2% so their invisible guards can keep it safe for you.  Meanwhile the bank lends your money to your neighbor to refinance their home at a much higher interest rate.

The problem with keeping your money in the bank is you end up using it to purchase the next shiny object instead of investing it.  Or your money ends up losing value from inflation over time.  Both situations aren't good if your goal is financial freedom.

If you want to be rich then keep working or become a doctor.  As long as you are working you will remain rich.  However, if you want to be wealthy you need to have your money working for you.  Wealthy people have investments that create cash flow.  They use this cash flow to support their lifestyle or they reinvest it.  

It's rare to see a wealthy person with a lot of money sitting in the bank.  Why?  Because just like banks, their money is everywhere, not somewhere.  They either lend or own real estate and businesses.  They think in terms of risk vs reward.  Not what is the path of least resistance like a bank savings account. 

If your considering lending your money, like a bank or wealthy person, how do you reduce your risk? By securing the loan to something valuable.  That if they don't come back with your money you receive the valuable asset in exchange.

This is the simplified concept of real estate lending.

The valuable asset is the property and it should be worth more then the amount you are lending.   The difference between what you are lending and what its worth is called the equity.  The equity is either created over time by appreciation or by the borrower placing a down payment when they purchase the property. 

The more equity in the property the less risk there is when lending.  Our investment group is constantly looking for investments that have equity.   It's the number one deciding factor if we are to invest.  We are finding equity in properties that were purchased by borrowers during the low point of the last market cycle.   See the below graph.

It's rare to see a wealthy person with a lot of money sitting in the bank.  Why?  Because just like banks, their money is everywhere, not somewhere.  They either lend or own real estate and businesses.  They think in terms of risk vs reward.  Not what is the path of least resistance like a bank savings account. 

If your considering lending your money, like a bank or wealthy person, how do you reduce your risk? By securing the loan to something valuable.  That if they don't come back with your money you receive the valuable asset in exchange.

This is the simplified concept of real estate lending.

The valuable asset is the property and it should be worth more then the amount you are lending.   The difference between what you are lending and what its worth is called the equity.  The equity is either created over time by appreciation or by the borrower placing a down payment when they purchase the property. 

The more equity in the property the less risk there is when lending.  Our investment group is constantly looking for investments that have equity.   It's the number one deciding factor if we are to invest.  We are finding equity in properties that were purchased by borrowers during the low point of the last market cycle.   See the below graph.

Our strategy is to acquire loans from hedge funds and private sellers that lent to borrowers to purchase homes from 2010-2014.  This time period offers the best opportunity for the loan to have a strong equity position since the values have increased dramatically.   We are looking for pride of ownership, good pay history and in good

locations.   Most importantly we are looking for the highest return on our investment with the lowest amount of risk. 

These type of investments have two distinct advantages to typical lending.  One, the seller/bank is willing to take less then what they are owed from the borrower.  Two, they are high interest loans usually in the 9-10% range.

The bank/seller is willing to take less then what is owed since, in most cases, they paid pennies on the dollar for the asset during the last downturn.  They then offered a type of seller financing called a land contract at a much higher value.  The interest rates are higher because the borrowers at the time didn't qualify for a traditional mortgage.  

Being able to purchase the loan for a discount with a high interest rate produces returns of 14-18% per year.  In many cases, these loans are only 50-60% of the value of the property, which reduces our risk in case of default as well. 

These loans serve as the foundation for our investing platform and allow us to peruse foreclosure investments that produce even higher returns. 

*Check out this video below of a recent mortgage investment we purchased in Lake Orion for only $19K

Are you curious of how this works with real life examples? I can email you a copy of our plan.  We will show you what happened behind the scenes during the last housing bubble and how you can be prepared for what is to come. 

Email me today to discuss what we are doing to protect our investors wealth.  Kyle@expandcap.com or 248-955-8222

Local to Michigan? Check out our Facebook Page "Michigan Note Investors"

Kind regards,
Kyle Zimpleman, Managing Member

Real Estate Bio

2019 Recap: I know what you did last summer!!

Actually, I don't know what you did last summer.  

But I can guess it wasn't buying a bunch of performing land contracts from a hedge fund that snagged up over 10,000 properties for pennies during the last crash.

In this cheap debt fueled market, the quest for a safe reliable income stream isn't always a straight path.  You have to find value where others can't.  This has led us into alternative real estate investments like land contracts and non-performing mortgages.  

Alternative investments don't mean high risk unproven concepts.  In fact, it's the opposite.  When you buy a mortgage from a bank or lend money,  you basically become a bank.  You start thinking like a bank, instead of an over leveraged borrower. 

You actually become better than the bank since you aren't forced to provide loans.  Instead, you can pick and choose your investment strategy. 

Our investment group focuses on being the lever instead of the leveraged.  It forces you to make sound investment decisions that aren't based on appreciation and speculation. 

When you act as a bank you it's imperative to invest in properties that already have equity and cash flow.  However, many investors are taking a very different and risky approach by attempting to create equity by raising rents or improving the property.   

If you're a contrarian investor, like those in our group, then you believe that markets have cycles and using leverage at the wrong time can create a financial wipeout. 

2020 is expected to be a very interesting year to say the least.  Because our group doesn't use leverage or buys for speculation we are positioned to make an above average return in both good and bad markets. 

If your ready to explore a better way to invest,  owning real estate free & clear and being the bank may be right for you. 

Ready to learn more?  Let's talk and set up a phone call. calendly.com

Kind regards,
Kyle Zimpleman, Managing Member

Real Estate Bio

We identify opportunities to acquire pre-foreclosure, bank owned, and performing loans at pennies on the dollar from our network of banks and hedge funds.  This fund provides a vehicle for investors to participate in off-market real estate long before its available to the public.  This translates into above average returns to our investors and provides peace of mind that their investments are secured by equity in real estate.

Front Row Seat to a $4,000,000 Real Estate Scam!

I got swindled by a con man even when I knew better.  This is a true story that happened during the early stages of my real estate investment career.  I’m writing this to first tell you how it happened and then how you can avoid falling into the same trap.

It wasn’t millions of dollars, but $12,500 would have paid for one hell of a great Vegas vacation!  Especially back in 2005 when I was single 26-year-old. Or I could have used it to pay bills- whatever.  Anything but to have trusted a guy with my money that would never return my calls and emails again. 

I even bought the scumbags lunch before handing him over my money…

I can still feel the tense anger and stupidity even today.  There were red flags. Even my father said, “You will never see that money again”.  But my thoughts were blinded by the idea of making 10X on my money.  When something is too good to be true… Yah I know.

It wasn’t so much the greed, I really wanted to learn how to invest with the big boys

A fellow real estate investor told me about an opportunity that he and others were investing in with a big shot developer.  We all piled in the conference room in a swanky lawyer’s office. The secretary, a young and attractive woman, asked if I would like a coffee or water.  I didn’t drink coffee at the time, but I said coffee please.

As I slowly sipped the hot coffee, I felt important and part of something bigger.  The main guy strolled in about 10 minutes late.  His demeanor was smug.  Almost as if he was making an exception to allow us to give him OUR MONEY.  First mistake, the deal was in North Carolina. I knew nothing about North Carolina other than it was warmer than Michigan.

*Photo is of a similar development

The second mistake, overlooking the fuzzy details on the project.  He showed us an aerial photo and a grainy video of him in a helicopter overlooking a 100-acre parcel of land.  The deal involved him purchasing the undeveloped agricultural land and then dividing the 100 acres into 10 or 20 separate parcels after it was rezoned to commercial use.

He named off multiple sales and lease agreements he already had with Home Depot, gas stations, etc. But the big reason for all the excitement was a new highway that was being developed and the exit was right at the corner of this property!!

I thought, “Wow this guy is a genius and I’m lucky he is going to show me how to be rich and famous.” I was sold with a grainy video, an article on the new highway, and a fancy office that wasn’t even his own.  No hard facts like purchase agreements or how he was Really going to get the project actually done.  I didn’t even think to Google his name or do any vetting of my own.  

Long story short. The property was never purchased, and the guy skipped town. A total of 26 people were victims of this scam for a total of over $4M dollars.  Some lost everything they had.  I was lucky, since I didn’t have much back then anyway.  I probably would have given him more if I did.

What could I have, and others done differently? 

Here is a brief checklist and this is in no way everything you should do. 

1.       What due diligence is available to vet the key persons?

2.       What are some red flags to look out for?

3.       What questions should you be asking?

Now some of you reading have already invested with me on various real estate projects.  I just Googled my name as well.  

Which is the first step… You can learn a lot through a Google and Facebook search about a person’s character.  You also can avoid having to sit through someone’s long winded pitch when you can clearly see from Google, they have no experience.

Other than Google, you can also pay for service to do a background check.  Now, just because there are court cases doesn’t mean they are at fault.  In the real estate and debt world, ending up in court is routine.  Make sure to read the documents carefully and know who the Plaintiff and Defendant in the case is.

What’s their track record of success? 

The key person is the glue that is going to keep things together and see that your money safely lands back in your pocket.  But how can you know if this person can do what he says?

Investing in real estate isn’t easy and it's very time consuming to do it right.  Just because you’ve read a book and watched HGTV “Flip that House” doesn’t make you qualified.  Until you have been in the real estate trenches, you really don’t know what you’re talking about, even if you have found the best deal on the planet.  There are plenty of ways to screw it up and make yourself and your investors liable for more money or lawsuits.

Ask for details on previous real estate projects.

If they are hesitant or give you a run around, then it’s a good chance they either don’t have the experience or their experience has turned out poorly.  You need hard evidence including addresses of deals done.  It’s easy to look on County records for the names of previous owners of properties to see they actually owned the property. 

The best people to work with come from referrals from people have worked with the key person in the past. 

I was referred from a trusted friend, but he and I never worked with this person. Ideally, you want to be introduced to someone that has a history of taking deals full cycle.  Meaning that the person referring you to the investment has invested their money and that money was returned with a profit. 

Red flags- The project itself.

Time is the killer of deals.  The shorter the time frame the less issues can come up.  The longer the time frame the more likely emotions are going to get the best of people.  This is especially true when it comes to large rehab projects.  Here are some common issues that come up as time drags on.

  • The key person underestimates the time and effort involved. 
  • They run out of money and resources. 
  • Contractors walk off on project mid-way through
  • The city has their hands out looking for large fines

All this begins to weigh down on the key person. The initial excitement wears off and they are left with a huge time-wasting nightmare.  This is why you want someone that is a grizzled real estate veteran that has the staying power to see a project through.

Here are few questions to ask to avoid getting in the middle of a potential nightmare.

  1. What’s the time frame?
  2. What happens if your projections or exit strategy doesn’t work as intended
    1. ​Rents don’t increase
    2. You can’t refi in a year and cash everyone out
    3. The market decreases in value
    4. There isn’t an end buyer for the project
  3. How much of the key persons money is in the deal?
  4. How easily can a key person skip down?
    1. Do they have a family that is in the area?
    2. How long have they lived here? Did they move here recently?
  5. How does the contract read for the dreaded “Capital Call”
    1. Are you possibly on the hook for more money?
    2. Are you personally liable for anything?

Personally, I avoid any new development projects or investments that are dependent on appreciation. 

For example, if you are reviewing a multi-family investment and they say that they are going to raise all the rents and then refinance.  I would be very cautious.  If it was that easy, then why didn’t the previous owner do it?

In conclusion, real estate is one of the best ways to grow your wealth.  It’s a time tested and the right strategy can work in boom and bust economies.  You don’t need to be afraid to invest but you do need to be smart with how you invest. 

I’ve learned this a few times the hard way.   However, with the right amount of due diligence, you can have your cake and eat it too!

Kind regards,
Kyle Zimpleman, Managing Member

Real Estate Bio

How to Recession Proof Your Retirement by Being the Bank

The U.S economy has been on the longest expansion ever in history.  Which begs the question- How much longer can this continue?

Many investors are sensing it's time to lock in their gains and put some of their money where Wall Street can't touch.  But, where can you put your money where it is safe and it can grow? 

You could put your money in the bank and earn 2%. However, wouldn’t it be better to earn 8-17% by BEING THE BANK?   

Expand Capital Group helps you simplify and take back control of your retirement by investing directly in very low balance home loans.  We sidestep the traditional

banking model and deal directly with borrowers!

*You don’t need to worry about China, Fed's interest rates, or greedy Wall Street when you invest locally in Main Street.  

Our group purchases or creates simple low loan-to-value 1st position mortgages and land contracts secured by brick & mortar real estate.  If the economy enters a recession, we're not worried. 

We're actually expecting it, and we have positioned ourselves to be on the receiving end for off market properties and loans. In addition, the properties and loans we have already acquired have multiple exit strategies that can make you more money than originally intended. 

For example, we can always rent, sell, or create new loans with these properties if needed.

We believe this is what investing is all about.  Controlling your own destiny

. If your stock goes down, what options do you have? Sell, hold, or buy more... Not exactly a position you want to be in when a market is in a recession.

We own everyone of our investments for fraction of what others are paying for similar property.  Since we only use cash when purchasing properties and loans, we can afford to wait out any economic storm that may come. 

There is a growing movement to invest locally; where your money not only grows but grows the community as a whole.   The loans in our portfolio are a great example: 

  • The average monthly payment to the borrower is less than $550 including taxes and insurance.  Whereas, the equivalent rent is $850 to $1000.
  • Borrowers average loan balance is less than 60% of value.  This loan balance allows them to finally get out of the poverty cycle and toward lasting wealth. 

This type of investment may be for you if:

  • You're looking for a simplified investment that only uses cash. No leverage.
  • You're concerned about your IRA/401K or other retirement savings lasting another recession.
  • You want to take back control of your money and protect it from Wall Street's next bail out.

Email me today at kyle@expandcap.com or call me at 248-955-8222 to learn more about these opportunities.  

*Build a strong retirement that is immune to Wall Street.  If you're rich, you put your money in the bank.  If you're wealthy, you are the bank!

Kind regards,
Kyle Zimpleman, Managing Member

Real Estate Bio

Would you have bought this house in 2012?

 945 Virginia Ave, Grand Rapids MI

If I had told you in 2011 that we could have purchased this property for $46,000 would you have invested with me?

The answer is NO... I pleaded with people that the time was right and the returns made sense.  Everything made sense other than investors emotions at the time. 

What about six months later when I had it rehabbed and rented for $1600 per month? Would you have paid $85,000?

This was one of my first partnerships.  My good friend's father took a chance when most people believed it was a terrible time to invest in real estate.  We continued to rent the above property for five more years at a 3.5% mortgage. We created an unbelievable cash flow of close to $9,000 per year.

In 2017, our college renters of five years finally moved on and we decided to sell the property.

Would you have paid $182,000?  Well, that's what happened in 2017.  

The reason I bring this up is to not brag but to illustrate the point of taking action and taking a chance with someone. 

My grandfather used to say "Nothing really good in life happens when you say NO."  As I reflect on this quote, I find myself thinking about all the good things that happened in my own life. They all started with a YES.  Yes to getting married.  Yes to having children. Etc... 

If you're considering investing in real estate or mortgage notes, please don't hesitate to call.  I have lucrative investments that need investors. Call or email me today!  

Below is a quick interview with the investor that said yes on the above example and many other investments with me.  

Investor Interview

Kind regards,
Kyle Zimpleman, Managing Member

Real Estate Bio

What’s Your Problem?

I can't solve the world's problems.  I can't make soybeans in China go up in value, however, I can help a family in middle America stay in their home.  This is what I like about this business.  I find problems that are in my control to solve. 

Our firm is in a position to solve three unique problems:

1.       We solve the bank's problem

2.       We solve the borrower’s problem

3.       We solve the investor’s problem

Bank's Problem:

Financial institutions that specialize in mortgages need to create loans.  Some of those loans default and become non-performing.  When that happens, the bank has a problem.  They need to remove these loans from their portfolio.  They can afford to write off the non-performing loans.  What they can’t afford is spending the time to work out a permanent solution with the borrowers.  Any time spent on non-performing loans distracts them from their core business of creating new loans. 

Our firm purchases these loans at a significant discount. 

Borrower/homeowner Problem:

Homeowners that default on their loan need to live somewhere.  We seek to solve the homeowner’s problem by creating solutions that are mutually beneficial.

Investor’s Problem:

The real estate and stock market have reached all time highs and many investors have sold their positions and locked in their gains.  The problem is these markets have become very volatile and a correction or recession is likely.   Therefore, many investors are not willing to reinvest their capital into the very stock or real estate they just sold. 

As interest rates rise and inflation increases, their purchase power is decreased.  Banking institutions are only offering 1-2% interest to hold their money in savings. 

Our solution:

Our firm has created a new fund that provides a platform to help solve these problems.   First we put investors capital back to work for them by purchasing pools of mortgages from financial institutions at a significant discount.  Next, we work with homeowners to find an affordable solution.

We are able to achieve our goals of providing a secure investment protected by real estate and help families living in these homes where banking institutions are unable or unwilling.

Call or email me today to learn more about how we can help.  

Local to Michigan? Check out our Facebook Page "Michigan Note Investors"

Kind regards,
Kyle Zimpleman, Managing Member

Real Estate Bio