Toronto SmallCap

Sonia Hodgin and Formulaic Inc.: Innovating How Properties Are Traded

Sonia Hodgin, the founder of Formulaic Inc. in Scottsdale, Arizona, believes there is no such thing as a bad property; only a bad investor. “The good news, however, is that it’s easier than you think to become a good investor. All you need is the right formulas to do it, and my company will empower you with them. You can then get started on building a portfolio that will stabilize your life financially and show you a new way to live.”

The key to what Sonia Hodgin does lies in cutting out the real estate agent and showing clients how to handle trading on their own. “That’s a very intriguing idea for many people,” she says. “It’s such an accepted idea in our society that a real estate agent must be involved in every transaction, but what if that isn’t true? It isn’t, and by handling transactions yourself, you will have more profit and will save on that commission.”

Sonia Hodgin structured Formulaic Inc. around four services to help her clients build real estate wealth. The first is a mentorship program. “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 bases.”

For people who need a broader understanding of real estate investments, Sonia Hodgin offers Formulaic 300, a yearly 3-day seminar through Formulaic Inc. in Scottsdale, Arizona. “I show them how to invest, do their first transactions, 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. 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, which can be up to 10% in commercial and up to 14% in real estate in a two-way transaction (selling and buying). That is about $170,000 that remains 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.”

She also started a trading forum, 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. Sonia Hodgin 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.”

The ability to turn down a payout like this did not come easily. In 1999, Sonia Hodgin lost her husband to a drunk driver, who was never found. “My life, obviously, changed radically that day,” she remembers. “I was a widow who had to learn how to survive, and I had to raise a young boy on my own. I was forced to learn and to survive. When I learned how to be successful as a struggling single mom, I knew others needed to learn these special investment tricks.”

Ultimately Sonia Hodgin built Formulaic Inc. so that she could show people how to use these formulas and have their own financial stability. “No one should be alone, afraid of how they will retire or fearful about growing old,” she says. “That’s my passion to share, and because of it, my clients have the information and formulas to build completely new lives that are full of potential.”