Investing in Small Businesses

There are many different outlets that people can invest money into.  The first that comes to mind for most is real estate.  However, people can be approached to be investors in companies as well.  When someone invests money into a small business, for example, there are usually goals or responsibilities that the investor establishes for the business to follow.  There are different types of investments that can be made, as the article below explains.  Learn about them and then schedule a consultation with me to discuss your and/or your business’ financial goals.

Two Types of Investments You Can Make In a Small Business

Equity and Debt Are The Choices on the Small Business Investment Menu

By Joshua Kennon
Updated May 29, 2017

Investing in a small business has, is, and most likely will always be one of the most popular ways individuals and families begin their journey to financial independence; a way to create, nurture, and grow an asset that, when intelligently run under the right conditions, throws off surplus cash to provide not only a good standard of living, but to fund other investments. Still, it isn’t uncommon, at least in nations with an entrepreneurial history such as the United States, for a small business owner to have never owned a publicly traded share of stock or a mutual fund, opting, instead, to put everything into their own restaurant, dry cleaning business, lawn care business, or sporting goods store.

Frequently, this small business grows to represent the most important financial resource the family owns, other than their primary residence.

Today, small business investments are often structured as either a limited liability company or a limited partnership, with the former being the most popular structure due to the fact it combines many of the best attributes of corporations and partnerships. In years past, sole proprietorships or general partnerships were more popular, even though they provide no protection for the owners’ personal assets outside of the company.

Whether you are considering investing in a small business by founding one from scratch or buying into an existing company, there are typically only two types of positions you can take: Equity or Debt. Though there may be countless variations, all investments come back to those two foundations.

Equity Investments in Small Businesses

When you make an equity investment in a small business, you are buying an ownership stake – a “piece of the pie”.

Equity investors provide capital, almost always in the form of cash, in exchange for a percentage of the profits and losses. The business can use this cash for a variety of things, including funding capital expenditures to expand, running daily operations, reducing debt, buying out other owners, building liquidity, or hiring new employees.

In some cases, the percentage of the business the investor receives is proportional to the total capital he or she provides. For example, if you kick in $100,000 in cash and other investors kick in $900,000, totaling $1,000,000, you might expect 10% of any profits or losses because you provided 1/10th of the total money. In other cases, especially when dealing with an established business or one put together by a key manager, this would not be the case. Consider the investment partnerships Warren Buffett ran in his 20’s and 30’s. He had limited partners contribute nearly all of the capital, but profits were split 75% to limited partners, in proportion to their overall share of the capital, and 25% to him as the general partner, despite having put up very little of his own money. The limited partners were fine with this arrangement because Buffett was providing expertise.

An equity investment in a small business can result in the biggest gains, but it comes hand-in-hand with the most risk. If expenses run higher than sales, the losses get assigned to you. A bad quarter, or year, and you might see the company fail or even go bankrupt. However, if things go well, your returns can be enormous.

Virtually all of the research on millionaires in the United States shows that the single biggest classification of millionaires are self-made business owners. Statistically, if you want to rank among the top 1% of wealth, owning a profitable business in a niche market that churns out dividends each year is your best chance.

Debt Investments in Small Businesses

When you make a debt investment in a small business, you loan it money in exchange for the promise of interest income and eventual repayment of the principal. Debt capital is most often provided either in the form of direct loans with regular amortization or the purchase of bonds issued by the business, which provide semi-annual interest payments mailed to the bondholder.

The biggest advantage of debt is that it has a privileged place in the capitalization structure.

That means if the company goes bust, the debt has priority over the stockholders (the equity investors). Generally speaking, the highest level of debt is a first mortgage secured bond that has a lien on a specific piece of valuable property or an asset, such as a brand name. For example, if you loan money to an ice cream shop and are given a lien on the real estate and building, you can foreclose upon it in the event the company implodes. It may take time, effort, and money, but you should be able to recover whatever net proceeds you can get from the sale of the underlying property that you confiscate. The lowest level of debt is known as a debenture, which is a debt not secured by any specific asset but, rather, but the company’s good name and credit.

Which Is Better: An Equity Investment or a Debt Investment?

As with many things in life and business, there is no simple answer to this question. If you had been an early investor in McDonald’s and bought equity, you’d be rich. If you had bought bonds, making a debt investment, you would have earned a decent, but by no means spectacular, return on your money. On the other hand, if you buy into a business that fails, your best chance to escape unscathed is to own the debt, not the equity.

All of this is further complicated by an observation that famed value investor Benjamin Graham made in his seminal work, Security Analysis. Namely, that equity in a business that is debt-free cannot pose any greater risk than a debt investment in the same firm because, in both cases, the person would be first in line in the capitalization structure.

The Preferred Equity Debt Hybrid

Sometimes, small business investments straddle the ground between equity investments and debt investments, modeling preferred stock. Far from offering the best of both worlds, preferred stock seems to combine the worst features of both equity and debt; namely, the limited upside potential of debt, with the lower capitalization rank of equity. There are always exceptions to the rule. To learn more about preferred stock, read The Many Flavors of Preferred Stock.

 

Source: https://www.thebalance.com/types-of-investments-in-small-business-357246

Being a Profitable Flipper

If you have been wanting to take advantage of my real estate investor financing opportunities by fixing and flipping Orange County homes then you likely have a lot of ideas crossing your mind.  One concern you might have is how to be profitable from fixing and flipping.  How do the flippers on tv make it look so easy?  Well, the article below tells you 9 ways they do it.  It starts with knowing your market and being conservative with your money.  Learn more by continuing on below.

9 Secrets of Successful House Flippers

Hint: You need money, and you also need to know what you’re doing.

By Teresa Mears, Contributor | June 29, 2017

We’ve all seen the home improvement shows on TV: A personable couple (or few brothers or even cousins) buys a forlorn house, turns it into something beautiful and sells it for a profit, all within a few months.

Reality check: It’s not as easy as it looks. People make money flipping houses every day, but the secrets to success start with really knowing what you’re doing. And finding a good house to flip is much harder now because the market is so strong for bargain-priced homes.

“It is difficult to find a house to flip that makes economic sense,” says Mindy Jensen, community manager at BiggerPockets.com, an information hub and networking platform for real estate investors. “You’re competing with retail buyers. They’re buying the ugly houses because there’s nothing else.”

Brian Peavey’s company, ProfitShare, uses direct mail, door hangers, social media, real estate agents and personal connections to find homes to flip in Boise, Idaho. To make its offer more attractive to sellers, ProfitShare promises an additional payment once the flip has sold.

When his company’s offer is rejected in favor of a higher offer, Peavey puts in a backup offer in case the first deal falls through. “We’ve had multiple houses that we’ve ended up on second position on,” he says, eventually closing the deal.

Don’t believe those late-night infomercials that say you can get into house flipping with no money.

“Nobody is going to hand you a house for free, and you can’t go to Home Depot and they’ll give you your supplies for free,” Jensen says. “If you are using credit cards and have no money, you can get into trouble quickly.”

To get a conventional investor mortgage, you often need at least 25 percent down, though a good mortgage broker might find other options, including a lower down payment or a loan that provides some money for repairs. Hard-money lenders will lend to nearly anybody, but interest rates are high. Borrowing from friends and relatives is another option. “If you get with a very good mortgage broker… they may introduce you to lenders who have some unique programs,” says Steve Udelson, president of online real estate at Altisource, which offers services to consumers, investors and the real estate industry.

Another major key to success as a flipper is accurately estimating both cost and timeline. That doesn’t mean there won’t be surprises, but you want to calculate the true cost of getting the property ready for sale. That includes purchase price, repair costs, marketing expenses and carrying costs, such as mortgage, insurance and utility payments.

When you buy a home, you don’t always know what’s behind the walls: mold, asbestos, water damage, antiquated electrical lines, foundation issues or crumbling plumbing pipes. But, if you understand construction and issues faced by older houses, you can make a more accurate estimate. “When you get into these problems and don’t know what you’re doing, these problems can swallow your profit and put you under in a heartbeat,” Peavey says.

When you prepare to sell, you can’t list at a higher price just because the job cost you more than you had anticipated. “The house is only going to be worth what the market will bear – what someone will pay for it at the end of the flip,” Jensen says.

Here are nine secrets of successful flippers.

They buy at the right price. If you buy a house at full retail price then spend $25,000 on improvements, clearly you won’t make a profit. You want a house to which you can add value and sell for more than you spend. Especially in today’s market, you may need to search hard for a house that will make a profitable flip. “You make your money when you buy,” Jensen says.

They have access to cash. A traditional lender will want at least 25 percent down and also have the best rate. A hard-money lender, who gives a short-term mortgage based upon the value of the asset, may not care about your credit and will lend enough to buy and rehab, but he or she will charge 10 to 15 percent interest or more. You may get lucky and find a private lender who trusts you enough to give you a loan for acquisition and repair costs at a reasonable rate, but that often takes a track record unless you have relatives with money.

They make accurate cost estimates. Before you decide whether a house will make a good flip, you need to know how much it will cost to repair it, market it and hold onto it during the process, which means you also need an accurate timetable. When you estimate tile costs, don’t just look at the $2-per-square-foot price tag on the tile, but also include the cost of labor, mortar, grout and tools. Don’t forget taxes, insurance, mortgage payments, real estate commissions and marketing costs. “All of a sudden your $10,000 budget is $25,000 in reality,” Jensen says. “It costs a lot of money to flip a house.”

They hire good contractors. Finding a good, reliable contractor to work with you on flipping a house isn’t any easier than finding a contractor to renovate your kitchen. Start looking before you find the house. Ask for references, call those references and look at completed projects. “This is going to be the hardest part of the whole thing,” Jensen says. “I have found three in my whole flipping career who were amazing. I have hired a lot more contractors.”

They buy in the right neighborhoods. When you don’t have a lot of money, the tendency is to assume that an inexpensive house anywhere is a good option. It isn’t. You want a neighborhood that is safe, where values are rising and where people want to live. “Not every house makes a good flip,” Jensen says. “Just because the house is priced low doesn’t mean it’s a good value. You’re not going to be able to force those neighborhoods to be good.”

They do work themselves – when they can do it well. One way to avoid dealing with contractors is to do the repair work yourself. That can be a decent option if you’re good at home repairs. Calculate how quickly you can do the work yourself vs. how much you would have to pay someone else. Your time has value, too. But bad renovations turn off prospective buyers.

They don’t overimprove. If you buy a house in a neighborhood where all the other homes have laminate countertops and linoleum floors, you may not get your money back if you add custom wood cabinets, expensive wood floors and marble countertops. “You don’t want to be the nicest house in the neighborhood,” Jensen says. “You’re not going to sell a $300,000 house in a $175,000 neighborhood.”

They add special touches that don’t cost much. Spend a little more on kitchen faucets, a new doorbell, lighting or plumbing fixtures, Peavey said. Wainscoting, chair rail and crown molding all look nice but don’t cost much. “You sell the sizzle of the steak rather than the nutrients of the steak,” he says.

They sell their homes quickly. Every day the house sits unsold, you lose money. You need a strong marketing plan, whether you use a real estate agent or list it yourself. And you’ve got to price the property to sell based on market values, not what you’ve invested in it for improvements. “If you list too high, the house won’t sell,” Udelson says. “If you list too low, you leave money on the table.

Source: https://money.usnews.com/money/personal-finance/articles/2017-06-29/9-secrets-of-successful-house-flippers

Getting The Most Out of Real Estate Investing

I have been actively involved in real estate investment financing for many years through my company CLL Firm, LLC.  I have seen the market at all time highs where people were extremely successful in making money off of real estate, and I have seen the market at its lowest when the recession hit.  As years continue to pass since the recession in 2008, we have seen the market fluctuate but, nonetheless, move in a positive direction to recover.  People are finally getting interested (and actually making large profits) in real estate investing, and I love being a part of that.  The article below discusses several ideas to consider if you are serious about real estate investing.  Give it a read, and then let’s chat.  Explore the rest of my website to learn how to get in touch with me.

How To (Really) Become A Millionaire Through Real Estate

Brandon Turner, Contributor | Oct 18, 2016

Source: Binyamin Mellish via Pexels.com

Real estate can make you a millionaire.

Sure, this might sound like the promise of a late-night television salesperson trying to get you to attend the latest “free seminar,” but the reality exists: real estate is a powerful wealth building tool that has made millions of individuals millionaires.

Could you be next?

Maybe – but here’s the catch: not everyone who buys a piece of property becomes rich. In fact-  many people buy real estate only to find stress and empty bank accounts. They struggle for years and years but never build the kind of wealth they’ve dreamed of (or the riches promised by the late night TV guru.)

So – how does someone use real estate to truly become a millionaire?

As I discussed recently in the longest article I’ve ever written, How to Become a Millionaire, there are four primary “wealth generators” at play when you invest in real estate, depending on the strategy you get into:

  • Cash Flow. This is the extra income you’ll get to keep each month (or year) that you own the property. Cash flow can be deceptive because it fluctuates when certain repairs are higher or lower in different months, so it’s important to factor in non-monthly costs like vacancy (the amount of time the property sits vacant), repairs, capital expenditures (expensive projects that need to be replaced on a home every so often, like appliances, roofs, windows, plumbing, etc.), along with the regular expenses (utilities, management, etc.).
  • Appreciation. When the value of a property increases, we call this “appreciation.” While appreciation is not always guaranteed (just ask people who bought in 2006 and sold in 2010!), over time, historically, real estate has always increased in America, averaging 3% per year over the past century. Another type of appreciation that can come into play is known as “forced appreciation,” the concept of increasing the value by physically improving the property.
  • Loan Pay-down. When you buy a property with a mortgage, each month your loan balance decreases. This means, over time, your tenant is essentially paying the loan down for you, helping you build wealth automatically. To make this concept clearer, pretend for a moment you owned a property that you bought for $1,000,000 with a mortgage for $800,000, and it made $0 in cash flow (it “broke even”) and never climbed in value. However, after that thirty-year mortgage is paid off, you’ll now have a property worth $1,000,000 that you didn’t actual save for. Your tenant paid it off due to the “loan pay-down.”
  • Tax Benefits. The final wealth generator from real estate are the tax benefits associated with owning property in the United States. The U.S. government likes real estate investors and uses the tax system to encourage our purchase and leasing of properties. From extra tax write-offs to the lack of “self-employment tax” to the 1031-exchange and more, real estate investors can pay significantly less tax than other business owners, using the extra cash to buy more properties or pay of the loan faster — helping to build greater wealth.

Of course, just buying some real estate will not give you all of the above benefits. Different strategies in real estate will give you different benefits. For example, when you “fix and flip houses,” you are most likely not paying off a loan, thus you will not get the benefit of the “loan pay-down” nor are you getting cash flow or many tax benefits. Instead, flipping relies mostly on the “forced appreciation” you get by fixing it up.

One of the reasons I love buying rental properties so much is because they may capitalize on all four of the wealth generators — if you buy it right. Let’s use a quick example:

Jenny wants to build wealth through rental properties. So Jenny finds a duplex for $250,000 in her neighborhood. After running a careful analysis, she determines that it is a good deal. Jenny uses a $50,000 down payment and obtains a 30-year loan for $200,000. Combined, both units bring in $3,000 per month, but Jenny’s expenses average just $2,500 per month, leaving her with $500 per month in cash flow, which increases each year as rents climb with inflation. Although that income is taxed, she doesn’t have to pay any because of the depreciation deduction she gets on the property, thus part of the tax benefits of owning it. Over the next 30 years, the value of the home increases to $600,000 (a 3% per year increase due to appreciation). Finally, each year during those 30 years the loan has been paid down, and Jenny owns the duplex free-and-clear. She now has an asset worth $600,000, plus she’s making thousands per month in cash flow.

This example above is not “pie in the sky” numbers — these are real life options when you buy the right deal and utilize all four of the four wealth generators. Imagine what Jenny’s net worth would be after 30 years if she had purchased two duplexes — or four, or twenty of them early on.

Now, of course, no one wants to wait 30 years to become a millionaire. So how do you speed up this process?

Brandon Turner is an active real estate investor, author of The Book on Rental Property Investing, and the co-host of the BiggerPockets Real Estate Podcast.

Well, there are a few ways you could speed this up:

  • Get a better deal. In the example with Jenny above, what if she was able to negotiate stronger and get that same duplex for $200,000 instead of $250,000? This would supercharge her growth.
  • Buy more deals. Jenny could have also purchased more properties. Perhaps she would buy one each year.
  • Buy in appreciating areas. While I used a 3% average for appreciation, Jenny could have researched job growth and other growth indicators to find an area where appreciation would be higher, perhaps 5-8% instead of 3%.
  • Force appreciation. Jenny also could have purchased a fixer-upper property that she could improve, increasing the immediate appreciation on the property. For example, maybe she could buy it for $150,000, put $30,000 of work into it, and it might be worth $275,000 at that point. This could also increase the speed at which her wealth would build.
  • Trade up. If you are familiar with the board game Monopoly, you’ll know the value in trading from four houses to a hotel. The same is true in real estate. Jenny could upgrade to bigger/better deals every few years to maximize her return. This is perhaps one of the fastest ways to achieve wealth through real estate — and if you want to know more, be sure to read How to Make a Million Dollars from Real Estate: A Step By Step Path.

I’ve only just barely scraped the surface on what real estate investing can do for you in your quest to become a millionaire. In fact, there are so many different paths and strategies you could take to become a millionaire through real estate that I could write a thousand books on the topic and never cover it all. You could spend your whole life learning about real estate and never learn it all. And that often becomes a problem! People get stuck in “education mode” and never escape it.

I’d encourage you to not get overwhelmed, not try to learn everything. Pick one niche (like single family houses, commercial properties, etc.) and one strategy (like rental, flip, etc.), and focus on that. Read one or two books on the subject, and then start moving! Find someone local who is doing the same thing as you want to do, and take them out to lunch. Ask for help, but don’t stop moving!

The road might be foggy — but if you just keep moving forward, more of the road ahead will be revealed.

 

Source: https://www.forbes.com/sites/brandonturner/2016/10/18/4-things-you-need-to-become-a-millionaire-through-real-estate-investing/#1a8315d3247a

Real Estate Investor Financing Fund

Kenneth Ketner and Orange County based CLL Firm, LLC. Announce Real Estate Investor Financing Fund

Newport Beach, California., July 2017 – Kenneth Ketner and Orange County based CLL Firm, LLC, announces CLL Fund 1 to provide real estate investing that gives borrower’s access to a flexible short-term equity financing source.

As regulatory changes continue to improve there is an opportunity to increase investor returns as it related to the housing sector.  CLL Firm LLC has created, CLL Fund 1, as a source for short-term financing and equity for real estate borrowers in Southern California and others markets.

“Thanks to our unique real estate partnerships that we enjoy and our firm’s knowledge of the different markets we have arranged to provide private capital investors to fill the gap in the ever changing financial world, for people who want to take advantage of the increase in values and stagnate properties in the Real Estate Market”, said Kenneth Ketner Business Development Director of CLL Firm, LLC., who will serve as the COO of the fund.

The Southern California Real Estate Markets have seen record growth according to several sources. Southern California home sales dropped close to five percent compared to a year ago but housing prices have hit a record high in two counties in the Southern California Markets which the firm believes creates opportunities. CoreLogic reported that prices have hit an all-time high in Orange and San Diego Counties, Los Angeles County is not far behind.

In a recent LA Times article there is a quote from Selma Hepp who is the chief economist with a Los Angeles Brokerage Firm. The quote was “Prices are rising faster than incomes and a lot of people are going to be pushed out.”

Ken Ketner stated on behalf of the Firm “That we believe this is an opportunity to purchase properties for an investor and for that investor to have the necessary profit margins to improve the property to current standards and market the renovated property to a new prospective buyer. Our Firm is arranging a turn-key solution for our clients. One of our clients recently targeted a property that had been on the market in Newport Beach, California for over one year. Based on the financial solutions our firm offered them they acquired the property at a savings of $450,000.00 from the original listing price in April of 2016.”

Andrew Miner who is a principle in the Newport Beach transaction gave the following comment: “I have been a general contractor and investor in Orange County for over 30 years. I have built or developed several projects in that time period. As we all know the world changed in 2008 and financing became difficult. When I contacted CLL Firm about acquiring the property they directed me through the process with less stress that I had anticipated. It was fast, seamless and efficient.”

Ken Ketner continued: “We think we have found a sweet spot in an ever changing environment. The current Real Estate Market provides opportunities for the right investor with the right house for sale to prosper. CLL Firm looks forward to assisting in this process.”

About CLL Fund 1

CLL Fund 1, is a private entity controlled by CLL Firm LLC., which is based in Newport Beach California that provides equity and transactional advice for its client with an accelerated response and completion time frame.  CLL Firm uses third parties to facilitate regulatory transaction if necessary. Visit our website at cllfirmllc.com for more information.

Congratulations to Children’s Hospital of Orange County!

In a recent survey from U.S. News & World Report, one of the hospitals I am passionate about helping, Children’s Hospital of Orange County (CHOC), was rated one of the best of its kind!  This hospital deserves as much recognition as possible for all it does for children and their families.  It is more than just a hospital.  Bravo, CHOC!  Read the full press release below and then head on over to CHOC’s website to learn more about them.

CHOC INCLUDED AMONG NATION’S BEST CHILDREN’S HOSPITALS IN U.S. NEWS SURVEY

CHOC Children’s has been named one of the nation’s best children’s hospitals by U.S. News & World Report in its 2017-18 Best Children’s Hospitals rankings.

CHOC ranked in seven specialties: cancer, diabetes/endocrinology, neonatology, neurology/neurosurgery, orthopedics, pulmonology and urology, which earned a top 20 spot on the coveted list.

According to U.S. News, the Best Children’s Hospitals rankings were introduced in 2007 to help families of children with rare or life-threatening illnesses find the best medical care available.

The 11th annual rankings recognize the top 50 pediatric facilities across the United States in 10 pediatric specialties.

The U.S. News Best Children’s Hospitals rankings rely on clinical data and on an annual survey of pediatric specialists. The rankings methodology considers clinical outcomes, such as mortality and infection rates, efficiency and coordination of care delivery and compliance with “best practices.”

“At CHOC Children’s, we are steadfastly committed to delivering high-quality, safe and reliable health care to our patients,” said Dr. James Cappon, CHOC’s chief quality officer. “Recognition from U.S. News of our excellence in these seven subspecialties validates our efforts, but also provides our patients and families with even more assurance of our commitment to excelling in all areas of care.”

“The pediatric centers we rank in Best Children’s Hospitals deliver exceptionally high-quality care and deserve to be recognized for their commitment,” U.S. News Health Rankings Editor Avery Comarow said. “Children with life-threatening illnesses or rare conditions need the state-of-the-art services and expertise these hospitals provide every day.”

Learn more about survival rates, adequacy of nurse staffing, procedure and patient volume, availability of programs for particular illnesses and conditions and more. 

Source: https://blog.chocchildrens.org/choc-included-among-nations-best-childrens-hospitals-u-s-news-survey/

 

Patrick Kelley Youth Foundation

The Patrick Kelley Youth Foundation (PKYF) is a charity I am very enthusiastic about.  Every year they create new goals, host Bike Day and create a scholarship all for underprivileged kids in the Las Vegas area.  You can learn about their goals this year along with Bike Day and the scholarship below.  I strongly encourage you all to get involved in one way or another — especially if you live in the Las Vegas area.  You can also visit their website at https://www.pkyf.org/.

 

2017 Goals

Our support at PKYF is targeted toward Las Vegas K – 12 students in a number of ways. In partnership with Las Vegas After-School All-Stars, PKYF aims to provide over 300 new bicycles and helmets to elementary school children in our annual PK Bike Day event each Spring. Our goal this year is to touch at least 450 new students in 2017.

In addition to rewarding the elementary students, PKYF currently offers college scholarships to seven college students and is seeking to raise an additional $80,000 for the funding of at least two more college scholarships for local high school seniors who plan to enroll in college in fall of 2017.

Along with educational support, we feel sports provide a great outlet that also helps teach youth a number of life skills including time management, teamwork, and self-confidence. PKYF helps fund local 501 (c) (3) traveling sports teams to help youth gain more exposure from college scouts for higher educational opportunities. We hope to give (5) $1,000 donations to different Las Vegas area teams in 2017.

We continually strive to improve the lives of students in several ways and in the near future, we plan to also become involved in children’s art and/or literacy programs and are currently seeking funding support to help get things started.

Thanks to those who have donated, we are growing and providing worthy causes to our local youth!

PK Bike Day

PK Bike Day is the Patrick Kelley Youth Foundation’s annual event to honor Patrick Kelley and his goals for children in the Las Vegas Valley. The first event was held in 2004 where 30 bicycles were donated. In 2016, 200 bicycles and helmets were donated to deserving students and the foundation raised $80,000 toward college scholarships.

The underprivileged students selected for PK Bike Day are participants of the Greater Las Vegas After-School All-Stars Program and are chosen from a set criteria of educational goals each child aims to meet. During PK Bike Day, these students are rewarded with a new bicycle and helmet of their choice during a celebratory barbecue with their friends as well as Patrick’s family and friends of the Foundation. It is a very special and truly memorable day for these deserving students and for those who knew and loved Pat.

Patrick Kelley Scholarship

The Patrick Kelley Scholarship was created for underprivileged Clark County high school seniors with higher education aspirations. The scholarship recipients participated in at least a lettered school activity or sport and maintained at least a 3.0 GPA while in school. Our recipients are first generation college students who meet financial aid requirements. Once the recipient is awarded the scholarship he/ she is expected to maintain at least a 3.0 GPA and be enrolled as a full time student. Each recipient helps with local PK events and volunteers their time in the community as well. The foundation keeps in contact with each recipient and provides mentoring support to further help their college advancement.

The money for the scholarship is from donations to the Patrick Kelley Youth Foundation with the main fundraising support stemming from PK Bike Day each year.

Why “Let’s Be Frank About Cancer” is So Important to Me

City of Hope and Children’s Hospital of Los Angeles are very near and dear to my heart and my family members’ hearts.  Recently, I attended a charity event held by “Let’s Be Frank About Cancer” called “Fly Me To A Cure” and it was extremely successful.  You can learn more about the gala and why I am so passionate about events and charities like this in the article below.

NEWPORT BEACH BUSINESSMAN KEN KETNER TALKS ABOUT HIS SUPPORT OF CANCER RESEARCH THROUGH HIS FRIEND FRANK DI BELLA

      

Defining moments in one’s life can come at any time. For Ken Ketner, a long-time Newport Beach resident and businessman, his defining moment began years ago when he was a young child.

“I suffered a debilitating bone disease and my parents had limited resources, so they turned to Children’s Hospital in Los Angeles for help. The care I got was beyond what words could describe,” Ketner says.

Ketner was named Easter Seal Child of the Year and became a spokesman for the organization at a very young age. He recalls that was his first effort trying to give something back for the kindness that was shown to him in a time of need.

It was in the late 1990s when Ketner met Frank Di Bella, an accomplished CPA. Di Bella had lost his kidney to cancer in 1994.

“I was impressed with Frank’s personal passion for helping others and especially his commitment to the Muscular Dystrophy Association,” Ketner says. “He organized a special event every year that helped raise money for the nonprofit for more than 20 years.”

In 2011, Di Bella faced a life-threatening battle. His cancer had returned with a vengeance. Given a diagnosis of only a few months to live by local doctors, Frank turned to the City of Hope because of their experience in developing powerful cancer treatments that saves lives. That decision saved his life, and Di Bella’s passion for helping others was refocused. That resulted in the founding of the “Let’s be Frank about Cancer” fundraiser, and, with the help of friends like Ketner, has raised more than $4 million for the City of Hope.

When Frank asked for my help, it was an easy yes,” says Ketner, whose wife Cheri, a successful realtor in Newport Beach, also became a willing “Let’s Be Frank About Cancer” committee member.

“When Frank asked for my help, it was an easy yes,” says Ken Ketner, whose wife Cheri, a successful realtor in Newport Beach, also became a willing “Let’s Be Frank About Cancer” committee member.

The money is sorely needed, and the statistics are staggering. According to the American Cancer Institute, the number of people living beyond a cancer diagnosis reached nearly 14.5 million in 2014 and is expected to rise to almost 19 million by 2024. Also, in 2014, an estimated 15,780 children and adolescents, ages 0 to 19, were diagnosed with cancer and 1,960 died of the disease.

Inspired by Sinatra’s famous song “Fly Me To The Moon,” this year’s gala, “Fly Me To A Cure,” was successfully attended by more than 400 guests. The evening was a celebration of life, of giving back, and of new discoveries. During the evening, His Excellency Milan Panic, former Prime Minister of Yugoslavia, was honored for his $1 million gift to the City of Hope. Likewise, Dr. Sumanta “Monty” Pal, Assistant Clinical Professor, Department of Medical Oncology & Therapeutics Research and Co-Director, Kidney Cancer Program, was recognized for his role in saving DiBella’s life and for his contributions at the Milan Panic Laboratory for Molecular Medicine at the City of Hope.

The committee members joyfully gathered at the end of the evening behind a huge check for $691,931, made payable to Dr. Pal for cancer research at the City of Hope. The final fundraising efforts raised more than $713,000 that night.

Major sponsors for the gala included His Excellency Milan Panic, S. Paul and Marybelle Musco, Bret Hardin of Ancon Marine, Michael and JoAnn Sweig, Ken and Cheri Ketner, Argyros Family Foundation, Mobilitie, and the Hausman Family Foundation. Jann Carl, former Entertainment Tonight correspondent and co-host of the breakout reality hit, “Small Town Big Deal,” was mistress of ceremonies for the evening.

Ketner perfectly summed up the spirit of the evening and its mission by saying:

“Our community is very committed and generous to nonprofits, and we know all of these organizations could use more help.” He went on to say, “I wish the entire community had been present to witness the success and passion that this year’s event created. I believe that if people in our community witnessed the energy in that room, next year’s event would be overwhelming.”

If this cause resonates with you, visit CityofHope.org or follow City of Hope on Facebook.com/CityofHope, 
Twitter.com/CityofHope or YouTube.com/CityofHopeonline.

Ken Kenter Attends Fly Me To A Cure: The 3rd Annual Orange County City of Hope Gala.

Defining moments in one’s life can come at any time.  For Kenneth Ketner, a long-time Newport Beach resident and businessman, his defining moment began years ago when he was a young child.  “I suffered a debilitating bone disease and my parents had limited resources, so they turned to Children’s Hospital in Los Angeles for help. The care I got was beyond what words could describe.”  Ketner was named Easter Seal Child of the Year and became a spokesman for the organization at a very young age. He recalls that was his first effort trying to give something back for the kindness that was shown to him in a time of need.

It was in the late 90’s when Ken met Frank DiBella, an accomplished CPA.  DiBella had lost his kidney to cancer in 1994.  Ketner recalls, “I was impressed with Frank’s personal passion for helping others and especially his commitment to the Muscular Dystrophy Association. He organized a special event every year that helped raise money for over 20 years.”

Ken Ketner, Kenneth Ketner

Ken Ketner and wife Cheri Ketner at Fly Me To A Cure: The 3rd Annual Orange County City of Hope Gala.

In 2011, DiBella faced a life-threatening battle.  His cancer had returned with a vengeance. Given a diagnosis of only a few months to live by local doctors, Frank turned to the City of Hope because of their experience in developing powerful cancer treatments that save lives. That decision saved his life, and DiBella’s passion for helping others was re-focused.  That resulted in the founding of “Let’s be Frank about Cancer” and with the help of friends like Ketner, has raised over $4 Million for the City of Hope.  “When Frank asked for my help it was an easy yes,” said Ketner, whose wife Cheri, a successful realtor in Newport Beach, also became a willing “Let’s Be Frank About Cancer” committee member.

The money is sorely needed, and the statistics are staggering.  According to the American Cancer Institute, the number of people living beyond a cancer diagnosis reached nearly 14.5 million in 2014 and is expected to rise to almost 19 million by 2024.  Also in 2014, an estimated 15,780 children and adolescents ages 0 to 19 were diagnosed with cancer and 1,960 died of the disease.

Inspired by Sinatra’s famous song “Fly Me To The Moon”, this year’s gala “Fly Me To A Cure” was successfully attended by over 400 guests.  The evening was a celebration of life, of giving back, and of new discoveries.  During the evening, His Excellency Milan Panic, former Prime Minister of Yugoslavia, was honored for his $1 Million gift to the City of Hope.  Likewise, Dr. Sumanta “Monty” Pal, Assistant Clinical Professor, Department of Medical Oncology & Therapeutics Research and Co-Director, Kidney Cancer Program, was recognized for his role in saving DiBella’s life and for his contributions at the Milan Panic Laboratory for Molecular Medicine at the City of Hope.

The committee members joyfully gathered at the end of the evening behind a huge check for $691,931 made payable to Dr. Pal for cancer research at the City of Hope.  The final fundraising efforts raised over $713,000 that night.

Major sponsors for the gala included His Excellency Milan Panic, S. Paul and Marybelle Musco, Mr. Bret Hardin of Ancon Marine, Michael and JoAnn Sweig, Ken and Cheri Ketner, The Argyros Family Foundation, Mobilitie, and the Hausman Family Foundation.  Jann Carl, former Entertainment Tonight correspondent and co-host of the breakout reality hit “Small Town Big Deal,” was Mistress of Ceremonies for the evening.

Ketner perfectly summed up the spirit of the evening and their mission by saying, “Our community is very committed and generous to Non-Profits, and we know all of these organizations could use more help.”  He went on to say, “I wish the entire community had been present to witness the success and passion that this year’s event created. I believe that if people in our community witnessed the energy in that room, next year’s event would be overwhelming.”

 

Kenneth Ketner Helps to Restructure Southern ITS Inc’s Corporate Debt held by CLL Firm LLC.

LAS VEGAS, NV–(Marketwise – March __, 2017) – Southern ITS International, Inc. (PINKSHEETS SITS), announced today that it has completed restructuring a portion of its Corporate debt held by CLL Firm, LLC, a Newport Beach, CA., investment and consulting firm. The Firm’s Business Development Manager, Kenneth (Ken) Ketner issued a statement: “our firm is looking forward to assisting the Company as it moves forward with its expansion plans and it is our belief that restructuring the debt will assist in that effort.” The management of the company believes this restructuring will help to achieve maximum value for its shareholders.

About Southern ITS International, Inc.

Southern ITS International, Inc. has been successful in providing Electronic Security and services to support government regulated high compliance industries. Government sectors (correctional facilities and programs) and private sectors, including gaming, have had challenges, but have been brought into the mainstream and are now subject to stringent compliance to tough government regulations.  Southern ITS International, Inc. has historically developed and delivered to the gaming and corrections sectors high compliance support systems facilitating the integration and implementation of complementary technologies. SITS continues to deliver such electronic security and networking infrastructure to those clients.

Precautionary and Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may,” “future,” “plan” or “planned,” “will” or “should,” “expected,” “anticipates,” “draft,” “eventually” or “projected.” You are cautioned that such statements are subject to a multitude or risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in the Company’s disclosures or filings with OTC Markets, Inc. You are further cautioned that stocks of smaller companies like Southern ITS International, Inc. are inherently volatile and risky and that no investor should buy this stock unless they can afford the loss of their entire investment.