Ricardo Fornesa, Jr. REALTOR®/MBA - A GUIDE TO SELLING YOUR HOME AFTER DIVORCE

A GUIDE TO SELLING Y O SELLING YOUR HOME AFTER DIVORCE

Ricardo Fornesa, Jr ornesa, Jr. REALTOR®/MBA

Table Of Contents

Moving On

Be Prepared

Marital Settlement Agreement

Staging With Purpose

The Three D's

Avoid Costly Mistakes

Be A Power Negotiator

The Dos And Don'ts Of Negotiating

Serious Considerations

November 15, 2022 Business Article: THREE TO FIVE MEMBER O FIVE MEMBERS FOR EACH SUB-SERIES LLC MUST HAVE CASH, CONNECTIONS, TIME, OR SPECIFIC EXPERTISE The Master LLC or Parent LLC’s mission when searching for profitable real estate investments is similar to playing a numbers game. It has been suggested to look for 50 properties in the MLS and other sources to eventually buy one and streamline the process by using the phone to pre-qualify sellers. For example, by pre-qualifying approximately 20 sellers from the Multiple Listing Service (MLS) and other sources, the Master LLC will typically find approximately five properties worth looking at. Looking at five properties versus 50 properties will save the Master LLC a lot of time. On the average, three of those five inspected properties will likely be worth making offers on. Finally, it has a great probability the Master LLC can close on at least one of those three properties. Pre-qualifying is a weekly activity—it is the key to keeping the pipeline full of good prospects. It will be a good practice to be contacting and pre-qualify a new group of property sellers. The goal is to enable the sub-series LLC to make the best decisions because each property will be owned by a particular sub-series in a Texas Series LLC. Each sub-series will have three to five members to own a single property and must conduct healthy debate, open-mindedness, commitment, similar values, and accountability. One of the members in every Sub-Series LLC must be one of the members of the Master LLC or Parent LLC.

Three to five members in every Sub-Series LLC have more resources when it comes to cash, connections, time, or specific expertise. A Sub-Series LLC in a Texas Series LLC must not be created simply because a prospective member is a friend or relative. Each member should contribute something important to the partnership. Money contribution is not enough to become a member in a Sub-Series LLC because teamwork with different strategies to implement in the real estate investing business are very important. Members should have a healthy debate before a decision to buy a particular property is made. Members have to spend valuable time continually convincing other members with open-mindedness to the goals and point of view concerning the specific property before buying it. Every member must be

committed to each other and to the goals of a particular Sub- Series LLC and must share the same values. Each member should push each other to achieve objectives to have mutual accountability. A member can contribute time and relevant research with expertise to a specific deal as well as manage the specific property to make it a cash flowing asset. His time and expertise can be as critical as money in achieving investment success because a business in real estate is a team sport.

Investors are always looking for new opportunities, and they are open to suggestions that involve detailed plan that specifically shows how they can receive a good Return on Investment (ROI).

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The Parent LLC in the Texas Series LLC will use facts, detailed research, and good business sense to demonstrate how a member could benefit by setting up and presenting a deal on paper that will benefit each potential member according to what each member brings to the table. The Parent LLC will only recruit potential members in a Sub-Series LLC after the necessary homework on an actual property is done by showing a prospective member an actual money-making transaction of the particular property that is being offered for sale. It is much more difficult for these potential members to walk away from the opportunity when a written plan that shows how the Sub-Series LLC will operate. The financial plan includes: How and when the transaction is scheduled to close; What the potential partner’s contributions will be; How partnership cash flow, profits, and benefits will be allocated; and How and when the opportunity and partnership will be completed. Preparation creates credibility.

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When the housing bubble is expected to pop up in 2023, a lot of distressed property owners will generally face foreclosure proceedings or other personal difficulties. The Parent LLC must learn how to deal with the unique issues of the distressed property marketplace and uncover distressed property opportunities. When distressed property owners are facing difficult situations, this is the right time for the Parent LLC to build rapport and trust with the potential seller. That rapport is needed to pre-qualify the property owners, and tactfully, yet clearly, present the benefits of any offer that is made. There’s a need also to negotiate with lenders and lien holders and ask and answer questions, inspect the property, and examine loan documents as the Parent LLC evaluate opportunities and create win-win offers. Repairing a physically distressed, “run down”

property can provide a great opportunity for a high return on the investment. Once the property is carefully identified and sufficiently evaluated with rehabilitation opportunities, the Parent LLC will need to make a purchase decision by choosing and acting on the opportunities that are found on the subject distressed properties.

Distressed properties are pieces of real estate whose owners have not been able to make timely payments and may be facing foreclosure. Often this is due to personal difficulties. Most distressed property owners feel helpless about stopping or forestalling what seems to be inevitable. The prospect of losing a home, and severely damaging a credit rating, is very frightening and the consequences are far-reaching. Most lenders will not extend a mortgage loan to property owners who have

experienced a foreclosure for several years thereafter. If there is not enough money from the sale of a distressed property to settle the encumbrances—what is owed and tied to the property—creditors can seek personal judgments against the property owner for debt settlements unless that distressed property owner filed for bankruptcy. Timing is everything in the distressed property market because property owners are in need of help right away. Their urgency can make them very open to a win-win deal that can help them avoid a black mark on their credit and could allow Sub-Series LLC to step into a rental property far enough below market value that it can expect good monthly cash flow. Only bankers and real estate agents make money on foreclosures because they have the inside scoop. Bankers make their money on loans, not on holding property. Real estate agents primarily make money on real estate transactions, not buying and holding property for cash flow. There are plenty of opportunities if the Parent LLC knows where to look. It only takes one great foreclosure to create a powerful stream of positive cash flow. If the Parent LLC learns some key details about the foreclosure process and learn to collect leads from a variety of sources, it can find a number of good properties that could be cash flowing assets. Purchasing a distressed property will pose special challenges. Parent LLC will be responsible to resolve any unpaid mortgage and punitive fees. It will have to settle any liens against the property. It will be required to do its homework to have a clear and complete knowledge of any encumbrances attached to the property. The Parent LLC should be willing to face and solve these kinds of problems, then foreclosed properties can help to generate significant cash flow. If the Sub-Series LLC buys a foreclosure and use it as a rental unit and receive cash flow, then the Sub-Series LLC is an investor.

November 1, 2022 r 1, 2022 Business Article:

PREPARATION AND IMP N AND IMPLEMENTATION ARE THE M N ARE THE MOST IMPORTANT KEYS IN BUILDING A SUCCESSFUL REAL FUL REAL ESTATE TEAM Assembling a dream team as a real estate investor can render exceptional benefits, especially in the starting stages. The ability to create a thriving business from the ground up is no easy task but building a successful real estate team has the ability to give investors expanded networking and investment opportunities. Preparation is the first step to do, and that’s why the first Master LLC or Parent LLC, “Fornesa Enterprises, LLC” applied an application and was given a Certificate of Formation with File Number 804742660 on September 23, 2022, by Secretary of State of Texas and has been found to conform to the applicable provisions of law. Texas Series LLC is an LLC that provides in its governing documents for the establishment of a series of members, managers, membership interests, or assets that have separate rights, obligations and liabilities and business purposes from the general LLC. Each individual series has the ability to sue and be sued, enter into contracts, hold title to assets, and grant liens or security interests in its assets. Texas is one of several states where you can form a Series LLC. A Series LLC is a unique type of limited liability company that can establish divisions, called “series,” with purposes, rights, and obligations separate from the Parent LLC or Master LLC, and each other. The basic idea behind forming a Texas Series LLC is that it allows an organization to segregate and protect assets without being forced to start numerous independent limited liability companies. Building a successful real estate team is second to none because it is an innovative solution to a common problem, as starting a real estate team can virtually double production while helping to take the business to the next level. When building a successful real estate team, investors should gravitate to personnel that have real-world experience. In order to receive any of the benefits of a S eries LLC, specific information must be included in the certificate of formation and company agreement, and must

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maintain separate records for the assets of each series, as required in sections 101.601-101.621 of the Texas Business Organizations Code (BOC, n.d.).

Once preparation has been established, Fornesa Enterprises LLC as a Texas Series LLC will focus on the implementation stage. Each Sub-Series will be comprised from three (3) to five (5) members as investors and will start evaluating prospective properties. They will evaluate and gather information about the neighborhoods they want to concentrate. They will review a checklist that will help them analyze the target neighborhoods. The objective is to look for a property that can become a cash flowing asset. Every property is owned by a particular sub-series

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and must file an assumed name certificate if it does business under a name that differs from the parent LLC. Understanding how to properly leverage specific current asset while developing new ones is an ongoing challenge in the investment process. Good credit, though not essential, can increase the ability to fully utilize available assets and build new ones as a real estate investor. Regardless of the past credit history, this is an excellent opportunity to right past wrongs and develop a pool of financial reserve resources. In order to get started building a successful real estate team for every Sub-Series, investors will need to first identify their strengths and weaknesses. A self-evaluation will assist in pinpointing characteristics and skill sets that they excel at, while also revealing areas for improvement. This is vital when building any business, as an owner will need to not only understand where their value lies, but where it’s lacking. When building a successful real estate team for a particular sub-series, this self-examination will ultimately provide a checklist for their most important needs (Esajian, n.d.).

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The two most important things to keep in mind about properties are cash flow and appreciation. No matter what level of experience, these should always be the two primary criteria. When buying investment properties, look for cash flow potential and areas that are up-and-coming. Especially when starting out in real estate, there is no substitute for going out and looking at properties. It’s the best way to get a realistic feel for the market for each sub-series when entering to spot trends that the LLC might be able to take advantage of. Start with neighborhood or one close by, so LLC members can go there again and again when looking for a potential property. If everything aligns, it may be time for investors to split off and move to their next business investment under the name of another sub-series, with their real estate teams churning out success unaccompanied. The xv

last part of building a successful real estate team is continuous improvements. Rome wasn’t built in a day, and neither will the sub-series LLC business. Investors should be continuously looking to develop and improve their business practices. Even if the investors decide to shift gears and hand the business off to someone else, it’s important to keep a clear line of communication with the business to ensure the team is following the systems in place. Done correctly, sub-series LLC investors will be able to focus solely on the overall picture of their real estate business. It may take time to figure out exactly what the business needs, but it’s the investors’ job to ensure it happens (Esajian, n.d.).

Home equity lines are better option than second mortgages for xvi

three reasons: first, there is no interest or payment until the funds are used. Second, the principal and interest payment are based on the remaining balance of the loan, thus it is usually smaller than the fixed principal and interest payment the sub- series LLC will pay on a second mortgage. Third, the line of credit is reusable as it is paid down and available when the sub- series needs it. A seasoned Real Estate Licensee is an excellent source of information in this area. Because the entrepreneurial journey transforms the life of every sub-series LLC member, it forces them to develop new skills, acquire new knowledge and introduce them to many outstanding, success-minded investors. If the sub-series LLCs able to survive the journey and succeed, what awaits them is better life for them and for their loved ones. Success means no more financial worries. Success means they can send their children and their grandchildren to the finest schools, giving them a leg up in life. Success means they can help their adult children buy their first home. Success means they can pay for their child’s wedding. Success means they can spend more time with their family at their vacation home. Success means they can help family and friends who are struggling financially to survive. Success means they can use their money to help local charities to do better. Success gives their lives more meaning because of all the good they can do for family, friends, and their community. The journey for entrepreneurs is difficult, but during that journey, they acquire superpowers that never go away. And those superpowers have significant monetary value that pay dividends for the rest of their lives (Corley, 2022).

References:

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uncertainty-is-a-way-of-life-for-entrepreneurs/

Esajian, P. (n.d.). Your guide to building a successful real estate team. Retrieved from https://www.fortunebuilders.com/ building-a-successful-real-estate-team/

October 15, 2022 Business Article:

SELF-MADE MILLI E MILLIONAIRES PRIORITIZE THEIR HEAL RITIZE THEIR HEALTH WITH BIG DREAMS AND GREA REAMS AND GREAT TEAMS WH T TEAMS WHO MAKE THEIR OWN LUCK The first Master LLC or Parent LLC, “Fornesa Enterprises, LLC” was given a Certificate of Formation with File Number 804742660 on September 23, 2022, by Secretary of State of Texas and has been found to conform to the applicable provisions of law. Texas Series LLC is an LLC that provides in its governing documents for the establishment of a series of members, managers, membership interests, or assets that have separate rights, obligations and liabilities and business purposes from the general LLC. Each individual series has the ability to sue and be sued, enter into contracts, hold title to assets, and grant liens or security interests in its assets. Texas is one of several states where you can form a Series LLC. A Series LLC is a unique type of limited liability company that can establish divisions, called “series,” with purposes, rights, and obligations separate from the Parent LLC or Master LLC, and each other. The basic idea behind forming a Texas Series LLC is that it allows an organization to segregate and protect assets without being forced to start numerous independent limited liability companies. A series of a Texas Series LLC is not actually a business entity separate from the parent organization, but it behaves a lot like a separate business entity. A series of a Texas Series LLC can enter into its own contracts, for instance, have its own assets, and sue and be sued. If properly established and maintained, a series of a Texas Series LLC is typically not liable for the obligations and debts

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of other series or its Parent LLC. In order to receive any of the benefits of a series LLC, specific information must be included in the certificate of formation and company agreement, and must maintain separate records for the assets of each series, as required in sections 101.601-101.621 of the Texas Business Organizations Code (BOC, n.d.).

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The regulations are expected to provide that each series will be treated, for tax purposes, as a separate entity regardless of whether the series is considered a legally distinct entity under local law. This clarity has been welcomed by the legal and tax community. A separate bank account should be maintained for xx

each series. All contracts, deeds, notes, etc. should be signed in the name of the specific series. Any loans between series should be properly documented. Any transactions between series should be conducted in an arms'-length manner at fair market prices using appraisals. Have each series file a fictitious business name statement in each county where it owns property. Each series should have its own name and the filing should emphasize the ownership of that series, for example, "Fornesa Enterprises, LLC, Series A only". This is to put creditors on notice. Keep the assets and operations of each series separate from the other series. Each asset should be owned solely by one series. In other words, two or more series should not be co-owners of the same property. Make sure each series is adequately capitalized.

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The world is filled with people who have good intentions and great ideas. Many have a strong desire to change the world, to make the world a better place to live. They may have great ideas, but in many cases, no one listens to them. No one follows because to become an extra-ordinary achiever takes hard work, xxii

fearlessness, and a growth mindset. They may be smart, but they have no power. No power to lead or inspire.Many of the self- made millionaires used a strategy called “Dream-Setting.” They sat down and wrote out what their ideal, perfect life looked like 10 years into the future. Self-made millionaires worked an average of 50 hours or more a week. But they didn’t work alone. Many succeeded because they focused on their strengths and figured out a way to outsource their weaknesses. If they did not possess a particular skill, they delegated to someone who was great at it, so they could focus on the bigger picture and have more time and mental energy to execute it. Surrounding themselves with people who shared their vision made it possible to go the distance with their goals. Ultimately, persistence creates opportunities, and luck eventually comes to those who refuse to quit on their dreams and goals. Self-made millionaires create their own luck. Building wealth in real estate is not easy because it requires the pursuit of a dream with passion and a willing mind. Good health translates into longevity, which means more time to create more wealth. Those who want to take this path must be willing to work long hours and able to handle financial stress (Corley, 2022).

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The Saver-Investors are people who are typically employees with middle-class income, but who lived very frugally and that’s why they were able to save some money. Not only is it the easiest way to build wealth, but if they start early, it almost always guarantees a lot of money. They had a low cost of living and preferred to save, rather than spend lavishly. They saved 20% or more of their income. They started investing their savings early in life and continued to do so prudently for many years. No matter what xxiv

their day job was, this group made saving and investing is a part of their routine; they were constantly thinking about smart ways to grow their wealth. It is not for everyone because it requires enormous financial discipline and long-term commitment. When this kind of investors teamed up with dream-setters described above and execute a real estate investing business with five (5) members by organizing a Sub-Series B only, governed by the Master LLC that can bring its considerable management skill to newly-formed Sub-Series B LLC, it will then find to purchase a real estate property with cash flowing asset in the name of that particular Sub-Series B LLC only. Once the property is substantially increased in value from the business plan, say over the course of three years, the Sub-Series B LLC will refinance the property, pay back all the investors their original capital plus a generous return on that capital, and yet the five (5) members- investors still maintain ownership in the said property that cash flows each month. At this point, Sub-Series B LLC members- investors are enjoying income regularly with no money in the deal which becomes an infinite return.

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The beauty for the Sub-Series B LLC members is when they create this wealth and recovered their initial investments, they can organize again Sub-Series C LLC to buy another property using that money they recovered from the previous LLC. Every property should be owned solely by one Sub-Series. Two or more Sub-Series should not be co-owners of the same property. Assets and operations of each sub-series are always separate from the xxvi

assets and operations of another sub-series. Each sub-series must maintain its own bank account for each series. With stock prices falling and inflation continuing to surge, a recession is looking more and more likely. In fact, there's a 50% chance that a recession within the next 18 months, according to research from CNN. Nobody can predict exactly when and how the economy will perform in the near term. But if a recession is looming, it's wise to start preparing for it now. If an investor can afford to invest right now, it's a fantastic opportunity to generate long- term wealth. But regardless of what the investor chooses to do, he should stay focused on the long term. Recessions aren't easy, but they are temporary. With the right strategy, Texas Series LLC can keep the investors’ money safe regardless of what happens. Over the long run, the economy has recovered from every single recession, and the stock market has rebounded from every single downturn. During and after the recession is the best time to make money in real estate investing business provided that the team the investor will choose can do it right (Brockman, 2022).

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References:

Brockman, K. (2022, July 14). A recession could be looming. what should you do with your money? Retrieved from https://www.nasdaq.com/articles/a-recession-could-be- looming.-what-should-you-do-with-your-money

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Business Organization Code, (n.d., Series LLC). Subchapter m. series liability company. Retrieved from https://statutes.capitol.texas.gov/Docs/BO/htm/BO.101.htm Corley, T. (2022, October 9). I spent 5 years interviewing 233 millionaires—here are are the 6 habits that made them ultra wealthy. Retrieved from https://www.cnbc.com/2022/10/09/i- spent-5-years-interviewing-233-millionaires-here-are-the- habits-that-made-them-rich-and-successful.html STARTING SMALL IS HOW TO GET THINGS DONE AND THEN MOVE FORWARD TO A MUCH B O A MUCH BIGGER GOAL AFTER A SERIES OF SMALL SUCCESSES Most people overestimate what they can do in one year but underestimate what they can do in ten years. Real estate investing is not a one-size-fits-all solution. There are many investment options when it comes to this asset class: single-family, duplex, triplex, apartment buildings, office buildings, retail strip malls and shopping centers, and industrial properties such as warehouses, hotels, and mobile-home parks. It’s best to start small in the beginning, but the sky's the limit — maybe someday the Master LLC together with its Sub-Series LLCs can own a skyscraper as well as create a modern Metro Manila in the Philippines in 30 years provided potential investors of two (2) Texas Series LLC will do things right. Small successes tell the brain, “it is not done yet, but we are getting closer.” BIG wins come from small successes. The Master LLC must have a future goal bigger than the obstacles this organization faces. However, the Master LLC needs milestones along the way to know that the organization is still on the right path. This is the secret to success. Small wins add up to the BIG win. The Master LLC cannot accomplish anything without action, and the first step is to register a Texas Series LLC in the state of Texas. By clearly October 1, 2022 Business Article:

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defining success and making a plan to have a good start, the BIG win can be accomplished by taking the first step in the right direction. Breaking down the BIG win into a series of small successes along the way and watching the motivation grows as the Master LLC perseveres and accomplishes BIG win is a must.

There are two main reasons to invest in real estate: cash flow from

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rental properties and capital gains when you buy and sell (flip) properties. Some investors primarily invest in rental real estate because cash flow fits their formula for financial independence. Investors decide which model works best for their goals and for their situations. When a Master LLC of a Texas Series LLC starts in real estate investing business, this organization will start small because it is easier to take a small action than it is to take a big one. The reason is when it starts big, it takes a lot of energy and time since the resistance is high, and the chances of giving up on it will be high too. The key is to make the action easy to carry out so that the resistance will be lowered. When something is easy to do, like brushing your teeth, you will never question yourself if you should do it. You just do it because starting small prevents overwhelming and paralysis. When the resistance is small, it is easier to carry out the task. And this will actually prevent the Master LLC from feeling overwhelmed and paralyzed. That’s why a lot of people fail to reach their goals because they set a goal that is so big that they set themselves up to fail. Everybody loves the idea of earning an income from the comfort of their home. And so, they try to start an internet business with the hope that they can make a million dollars in a year. Many people fail to consider their own capabilities. They want to be a millionaire and they want it now. They fail to realize that it is a big task that requires a lot of planning and consistent hard work. And once they started their journey, only then they discover that it is not easy to become a millionaire. They feel overwhelmed and eventually, give up on the goal. When you don’t believe that your goal is achievable and within your reach, you will never put in your maximum potential to reach it (Lim, 2018). Some investors want the big achievements, and they want it fast. And they ended up overestimating their abilities. But when it comes to the long-term, they underestimate the power of starting small and how much they can achieve. Investors who normally succeed have momentum because the more they succeed, the more they want to succeed, and the more they find a way to

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succeed. When an investor creates small victories, he feels good. And when he feels good, he will want to do more and take more action. When he takes more action, he gets even more results. Success is a cycle and that’s why starting small is important because it creates victories that will drive the investor to move forward to create even more victories. Minimum Viable Investment (MVI) is what the first Master LLC in a Texas Series LLC will do. Ricardo Fornesa Jr. as the Series Manager of the first Master LLC filed it on September 23, 2022, being reviewed now for statutory compliance by the Office of the Secretary of State. He will be notified by email if it is approved or rejected when the order has been processed within 10-12 business days. Once the Master LLC receives the Certificate of Formation from Secretary of State, Ricardo Fornesa Jr. who is a licensed Realtor in Texas for many years will begin looking for MVI. During a recession, buying a foreclosed property to rent out to tenants is a better bet for success. Another thing to look at when buying a property is its resale value. Highly desirable assets are those that can be easily bought and sold regardless of the market. They are always in demand because they are necessities like bread and water.

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While experts debate whether a recession will happen or when, most people are already convinced we’re headed for a downturn, a recent survey finds. High inflation is one of the biggest risk factors that make people think an economic decline is coming, along with high housing and rent prices and rising interest rates. Fed officials have now hiked the benchmark rate by three- quarters of a percentage point for three consecutive meetings. The 2022 Fed rate hikes are 0.25 basis points on March 17, 0.50 basis points on May 5, 0.75 basis points on June 16, 0.75 basis points on July 27, and 0.75 basis points on September 21. After the three consecutive interest rate hikes of 0.75 basis points, the National Average of Lenders’ Best Rates for a 30-Year Fixed Rate

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is 6.66 % for Purchase and 6.92% for Refinance. The three- quarter-point hikes are the first of their kind since 1994 — an indication of the Fed’s urgent desire to bring prices lower. Speaking a post-meeting press conference, Fed Chair Jerome Powell said the FOMC would hike its benchmark rate to a “restrictive level” and “keep it there for some time.” Current Fed projections call for a 4.25%-4.50% rate by the end of the year. Powell acknowledged that the rate hikes had contributed to “declining activity of all different kinds” in the US housing market and were likely to cause “relatively modest” increases in unemployment (Barrabi, 2022).

Starting small is the first step. Starting small is how to get things done and then move forward to a much bigger goal. The journey of a thousand miles begins with one step. Investors should think big, but when it comes to execution and starting, smart investors should always START SMALL. The principle of starting small is more applicable to tasks and projects that require sustainability, where investors need to take long-term action. The Master LLC is positioning itself on the upcoming recession and it is geared to start small. As inflation continues to increase, so does the probability of a recession, according to several recent economic forecasts. That means more layoffs, fewer jobs and higher interest

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rates may soon be on the horizon. Recessions are officially declared by the National Bureau of Economic Research, which defines them as “a significant decline in economic activity that is spread across the economy and that lasts more than a few months.” A big reason a recession looks imminent is because of inflation, which is showing few signs of slowing down. Banks, including Citigroup, Deloitte and PNC Financial Services, previously predicted a slowdown in 2023, but recent forecasts say a recession could occur in 2022 or earlier in 2023 than formerly expected. Last week, Bank of America followed an earlier forecast by Japanese investment bank Nomura, predicting a “mild” recession in the remaining months of 2022. The outlook is a revision of earlier forecasts that only predicted slowing economic growth. Similarly, Wells Fargo has changed its outlook from an economic “soft landing” to a “mild recession” in the first quarter of 2023 (Winters, 2022).

References:

Barrabi, T. (2022, September 21, 2022). Fed hikes interest rates by a sharp 0.75 points despite recession fears. Retrieved from https://nypost.com/2022/09/21/fed-sharply-hikes-interest-rates- by-0-75-despite-recession-fears/ Lim, S. (2018, November 13). Why start small? The 5 important benefits of starting small. Retrieved from https://stunningmotivation.com/why-start-small/ Winters, M. (2022, July 20). Ugly inflation numbers make a recession more likely in 2022, economist says. Retrieved from https://www.cnbc.com/2022/07/20/economists-chance-of- a-2022-recession-is-rising-with-inflation.html Having the RIGHT models and systems are the keys to success. This in-depth research coming from credible sources plans on giving you nothing but the facts of the situation, and where the

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analysis shows that they lead. I am working with a team of book writers for real estate and later will be working with a team of book writers for global economy by the time that we are ready to stand on the shoulders of Wall Street billionaires particularly the Global Hedge Funds and Holding Companies to entice them to support our big vision for the Philippines to create a modern Metro Manila. Here are copies of the books that I co-authored. https://ricardo-fornesajr.book.live/read-inherited-book https://ricardo-fornesajr.book.live/read-divorce-book https://ricardo-fornesajr.book.live/read-biz-card-book https://ricardo-fornesajr.book.live/read-fsbo-book https://ricardo-fornesajr.book.live/read-buyer-book https://ricardo-fornesajr.book.live/read-senior-book https://ricardo-fornesajr.book.live/read-foreclosures-book https://ricardo-fornesajr.book.live/read-investors-book Cityland Realty will always provide updated information, education-based presentation, and service that will exceed client’s expectations. Jun Fornesa obtained in 1995 the designations of a Registered Representative and a Registered Principal in Securities with National Association of Securities Dealers, Inc. (NASD). He owned and operated 18 retail stores from Los Angeles, CA to Albuquerque, NM, and finally to Houston, TX in his first 18 years in the U.S. He graduated Summa Cum Laude at American Intercontinental University (AIU) in pursuit of his Bachelor’s Degree in the study of International Business Administration. His Master’s Degree was completed at AIU with the specialization of International Business Administration garnering a perfect 4.0 GPA (Grade Point Average) and a recipient of medallion award. All information and materials presented in this article are for educational purposes only and does not provide tax, legal or investment advice. Email: ricardo.fornesajr@aol.com. Website: www.juntherealtor.com to read business articles.

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For more information please call (832) 704-2872 o (832) 704-2872 or (281) r (281) 710-7865.

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September 15, 2022 Business Article:

THE COMMON GOAL OF MEMBER AL OF MEMBERS OF THE UPCOMING TEXA OMING TEXAS SERIES S SERIES LLC MUST BE TO BUILD A O BUILD A BUSINESS TOGETHER IN A UNITED OGETHER IN A UNITED DESIRE In order for me to achieve the things I am capable of, I need to constantly be creating goals for myself and create a massive desire deep down to achieve these goals. There is nothing more important than having a desire deep down to achieve goals. n Every single day, I should have both long and short-term goals that are fueled by desire. The larger my goals are, the greater my desire needs to be. Every single person wishes that he had all of the money he wanted to fulfill all of his dreams. However, only a small fraction of people ever have all the money they want. The people who do have all the money they want have a massive desire to get these results. This desire enables them to work more than others and to see opportunities where others see none. I will not have the career I am entitled to claim for myself if I’m only wishing for it. Wishes can’t give me what I’m seeking. When I have a wish that is backed by a desire, I will start to achieve what I’m looking for because I will create opportunities for myself, and my desire will drive me to excel. I want to be around people who like me. I want my business career and my life to change. I want to get obsessed and focused on a goal. This is the only conceivable way my business career is going to go to the highest level possible. I need to find my passion and my goal that will charge me up, then go all out in achieving this passion and goal. Desire must be created. Nothing happens without strong desire.

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If I am meandering in my life, everything will change if I get a strong desire (Barnes, 2022).

I need to persist until I succeed. The prizes of life are at the end of each journey, not near the beginning; and it is not given to me to know how many steps are necessary in order to reach my goal. Failure I may still encounter at the thousandth step, yet success hides behind the next bend in the road. Never will I know how xl

close it lies unless I turn the corner. Always will I take another step. If that is of no avail, I will take another, and yet another. In truth, one step at a time is not too difficult. I will never consider defeat and I will remove from my vocabulary such words and phrases as quit, cannot, unable, impossible, out of the question, improbable, failure, unworkable, hopeless, and retreat; for they are the words of fools. I will avoid despair but if this disease of the mind should infect me, then I will work on in despair. I will toil and I will endure. I will ignore the obstacles at my feet and keep mine eyes on the goals above my head, for I know that where dry desert ends, green grass grows. Henceforth, I will learn and apply another secret of those who excel in my work. When each day is ended, not regarding whether it has been a success or a failure, I will attempt to achieve one more goal. When my thoughts beckon my tired body homeward, I will resist the temptation to depart. I will try again. I will make one more attempt to close with victory, and if that fails, I will make another. Never will I allow any day to end with a failure. Thus, will I plant the seed of tomorrow’s success and gain an insurmountable advantage over those who cease their labor at a prescribed time. When others cease their struggle, then mine will begin, and my harvest will be full (Barnes, 2022).

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If fear keeps me back from pursuing my dreams because of losing $1 million and additional debts of $1.5 million when I aggressively expanded to open many retail stores in Texas before the 2008 recession and the crash of the stock market, my fear and doubt would probably make me feel defeated. Despite of what happened, I was able to recover fully after so many years by working hard and smart. Afterwards, I decided to go back to school to develop my mental intelligence, and by doing so, I graduated Summa Cum Laude in completing 183 credits (units) in only two (2) years instead of four and a half years (9 semesters) if 20 credits per semester are computed for my Bachelor’s Degree

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in International Business Administration. Those people who are rich now are more mature when it comes to overcoming their fear. They are not reckless in doing so, but rather they put their emotional intelligence to work to see more clearly the path forward even in the face of fear and doubt. If I want to be rich, I also need to learn how to grow my emotional intelligence and overcome my fear. Mastering my emotional intelligence is where I will find true success. But most of all, I want to develop my spiritual intelligence by reading the bible every day. I am petitioning GOD to give me wisdom and guidance as well as the right investors to work with me in pursuing my big vision to make it realized in the coming years. Spiritual intelligence can be found where there is sacrifice between the right investors and my team in the upcoming Texas Series LLC’s real estate investing business that needs to be registered this month. The real virtue of a man is not measured during the time of abundance. It is rather measured during the time of adversity of how high he bounces back after he reaches the bottom. If I knew then what I know now, I might be better off with a long- term strategy designed for all types of conditions—including recessions. If I only used that approach during the peak of the peak of my importing, retailing, and wholesaling operations for many years, I would have invested my profits in real estate investing business and not in aggressively expanding of opening many retail stores in Texas. I don’t need to take action in anticipation of recessions because my plan already accounts for the fact that recessions (and other events) inevitably happen periodically. With a solid emergency fund and an all-weather investment portfolio in place, I might not need to make changes if a recession materializes. That’s the beauty of having my finances in order that I wished I have done before I experienced hard time during that 2008 recession. I could have focused on more important things in life and support my loved ones. Economic slowdowns can happen for various reasons. Some of the most common causes include bubbles that eventually burst like what

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happened in the bursting of housing bubble in 2008. Unsustainable inflation is happening right now globally and that’s why interest rate hikes are evident that signal another recession is coming soon that will shock and disrupt normal economic conditions.

The ability to delay gratification in pursuit of a goal is necessary to achieve almost anything. Very little of what we do on a moment-to-moment basis is gratifying – most of us have the obligations we have to meet, big-picture goals we’re working towards, or personal improvements we’re looking to make. All of these require us to delay immediate gratification in favor of xliv

doing something that will be beneficial down the line. Emotions are strong impulses that urge us to take immediate action. There’s nothing wrong with feeling emotions – the problems arise when the emotions are out of tune with the situation and when we don’t express our emotions productively or safely. We essentially have two minds: a thinking one and a feeling one. Our feeling mind is associative, and it reacts to information before our thinking mind even gets all the information and has an opportunity to weigh out the best action. Our feeling mind is more fully-formed at birth, while we can learn, change, develop, and adjust throughout our lives. This means our emotional reactions to things are formed before we have high-level thoughts to make sense of them. We can’t change our emotional reactions to things, but we can learn how to respond to our emotions diff s differently. This gives us the ability to choose how we respond to our emotions, reflect on our actions, and feel empathy for other people (Goleman, n.d.).

References:

Barnes, H. (2022, March 19). You need to have a desire to achieve your goal. Retrieved from https://www.harrisonbarnes.com/you-need-to-have-desire-to- achieve-your-goals/ Barnes, H. (2022, July 5). Persist until you succeed. Retrieved from https://www.harrisonbarnes.com/persist-until-you- succeed/

Goleman, D. (n.d). Emotional intelligence. Retrieved from https://www.shortform.com/summary/emotional-intelligence- summary-daniel- goleman?utm_source=bing&utm_medium=cpc&utm_campaign=Book%20-%

September 1, 2022 r 1, 2022 Business Article: IT IS IMPORTANT FOR A BIG VISION TO HAVE BOTH

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SPIRITUAL AND B AL AND BUSINESS MISS INESS MISSION WITH COMPASSION TO BECOME SUCCESSFUL The most important aspect for the success of any business is its mission. If a mission is clear and strong, a business will weather the trials that every business goes through during the first few years. When a business gets big and forgets its mission, or if that mission is no longer needed, the business will begin to die and that’s why every entrepreneur needs to keep the big vision and the business mission alive all the time. Almost all notable entrepreneurs faced trials and tribulations that would destroy mere mortals. Success has many parents, but failure is an orphan. Without an entrepreneur’s sense of mission and strong emotional intelligence, Apple, Microsoft, Google, and Facebook might not be here today. There are several reasons why you need a big vision with a business mission. First of all, a big vision is more motivating most especially if it can have a positive impact to a lot of people on the environment and society as a whole. If you think that you will need to agonize through years of toiling away at your business just to get to the point of making $50,000.00 a year, you are going to spend a lot of time wondering if it’s worth it. If, on the other hand, you shoot for, let’s just say 10 times that amount, you no longer need to justify the work you are putting in. The work is going to pay off in a big way. Another reason is that thinking big helps you think outside the box. There are all the obstacles inherent in running a business: where are you going to get funding, what is your business model going to look like, and many other concerns. If all you can see are obstacles, you will never seize on an opportunity even if it is staring you right in the face. You need to be able to look for opportunities and have the courage to tackle them despite their obstacles (Matthew, 2021).

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If there’s one thing the rich do differently than the poor, it’s that they put their money to work instead of working for their money. Their money isn’t just sitting around in a savings account, accruing little-to-no interest. Their money is being invested and delivering a return. Different investments produce different results. Frugality is spending less while income generation is earning more, and the difference must be invested in a cash- flowing asset. Cash flow is realized when you purchase an investment and hold on to it, and every month, quarter, or year that investment returns money to you. Cash-flow investors,

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unlike capital-gains investors, typically do not want to sell their investments because they want to keep collecting the regular income of cash flow. Frugality is important because controlling your spending reminds you there is more to life than consumerism. It forces you to be realistic and respect the boundaries and constraints of your current situation. It also protects you from risk since a cheaper lifestyle is easier to fund. One of the most important reasons to build your frugality muscles is to keep the goalposts from shifting. When the spending always rises to match the income level, you will never get ahead financially, but you will also never get ahead psychologically (Matthew, 2021) .

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To cash flow in real estate, you could purchase a single-family house and, instead of fixing it up and selling it, you rent it out. Every month you collect the rent and pay the expenses, including the mortgage. If you bought it at a good price and manage the property well, you will receive a profit or positive cash flow. The cash-flow investor is not as concerned as the capital-gains investor whether the markets are up one day or down the next. The cash-flow investor is looking at long-term trends and is not affected by short-term market ups and downs. Financial literacy allows you to not fear money matters, and to see the real value of money. True wealth goes way beyond and is measured by more than cash. Success in life is more than financial success. Cash flows from investing activities provide an account of cash used in the purchase of non-current assets–or long-term assets– that will deliver value in the future. Before analyzing the different types of positive and negative cash flows from investing activities, it's important to review where a company's investment activity falls within its financial statements. There are three main financial statements: the balance sheet, income statement, and cash flow statement. The balance sheet provides an overview of a company's assets, liabilities, and owner's equity as of a specific date. The income statement provides an overview of company revenues and expenses during a period. The cash flow statement bridges the gap between the income statement and the balance sheet by showing how much cash is generated or spent on operating, investing, and financing activities for a specific period (Kenton, 2022). Successful entrepreneurs see opportunities where others don’t. Throughout history, the rich often made their money by building successful businesses and then holding and accelerating that wealth through real estate investments. While everyone else is panicking and worried about a market crash, you’ll see entrepreneurs and real estate investors excited and ready to find some deals. This is a great time to be looking for real estate

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