Share
It’s very hard not to like Sonia Hodgin, the founder of Formulaic Inc in Scottsdale, Arizona. When you spend a few minutes talking to her, you quickly realize that she’s the type of person who looks at the status quo and instinctively wants to challenge it. She’s not someone who enjoys thinking in specific ways. Instead, she’s the definition of thinking outside the box. She also believes deeply in helping other people build their wealth. That’s why it was not surprising that she founded her company, which teaches people how to cut out the agent in real estate transactions and to instead trade their properties on their own.
“Think of the money people can save,” she says, “when they don’t have to pay that commission, which can be up to 10% in commercial and up to 14% in real estate in a two-way transaction (selling and buying) to the agent. That’s a lot of money to save. When I show people that they really can be their own agents, it’s a whole new world for them. Suddenly, it’s like they’re able to go to Mars and see a completely different side of life, one where they’ve got the power to build their own wealth at a faster rate.”
To help clients get started on their real estate journeys, Sonia Hodgin’s company has four services. The first is mentorship. “When they first consider bypassing an agent, that can feel intimidating to them. I sit down with them and go through their portfolio and show them how to change their formulas. It’s really practical advice that they can turn to for excellent results. I like to tell them that there is no such thing as bad real estate, just a bad investor. They are excited to see that becoming a good investor is actually easier than they originally thought. There are over 300 formulas to use that can help them up their basis.”
For people who need a broader understanding of real estate investments, Sonia Hodgin offers Formulaic 300, 3-day seminars through Formulaic Inc. in Scottsdale, Arizona. “I show them how to invest, do their first transactions with these added formulas, and trade in a forum. I also show attendees how to take a bad debt and change it into a passive asset to cash flow. People finish the seminar confident that they have the knowledge and ability to enter the real estate market. They also understand that they don’t need money to buy real estate – they just need to know the right formulas to use.”
A highly successful service has been Formulaic Circle, the company’s Wine and Dine Trading Circle and an invitation-only event in Scottsdale, Arizona. “Personally, I love going to these because it’s exciting to be around such like-minded people,” Sonia Hodgin says. “Once a month, twelve accredited investors from around the world meet to learn how to truly do a 1031 exchange. No real estate agents are allowed; you must be an accredited investor. The investor/attendee may have a $1 million property; by selling the property on their own with the 1031 exchange formula, they can defer an average of 38% taxation. On top of that, they save on the commission. That $170,000 would remain with the investor.” On any given night, Sonia Hodgin states that there are, on average, $38,000,000 in transactions. There is no fee for the attendees, as they are there as investors. “I do not mentor anyone at these events. My attendees show up knowing what to do. They have to be savvy.”
Sonia Hodgin also started a trading forum, www.formulaicinc300.com. The forum was created in San Francisco by a well-known software guru, Ed Wong. It is for paid members only, and they must pay $10,000/year. She explains that they get to trade as many investments as they want with like-minded, accredited investors. “Once again, there are no real estate agents, brokers, third party involvement, or transaction fees. With one transaction, members have a return investment instantly and beyond.” She pauses, then smiles. “I was recently offered $50,000,000 for the forum, but I turned them down.”
Most people would have a difficult time walking away from a payout like that, so why was Sonia Hodgin able to? “I know what it’s important in life,” she says, “and it’s not money. It’s people. My husband, a Navy man, fought in the first Desert Storm. We had a wonderful 7.5-year marriage, but in November 1999, I lost him to a drunk driver, who was never found. Our son was five years old at the time, and I had to raise him on my own. I worked hard to provide him with an excellent private education at a college preparatory school in Tucson, Arizona. He is a life Scout, and today he is a mentor for celebrities and entrepreneurs. I have an amazing family, including a wonderful daughter-in-law, a 1.5-year-old granddaughter, and another one on the way. I am a business owner, so yes, I care about success, but at the end of the day, being with all of my family as well as seeing the success other people attain are what really matter to me.”
Sonia Hodgin feels the same way about Forumulaic Inc.’s impact on people. “I find it tremendously gratifying to watch people who had nothing then grow to be financially stable,” she says. “When you realize that you can manage your own portfolio and better control your financial future, it really is very empowering.”
