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Sonia Hodgin and Formulaic Inc.: A New Way to Build Wealth through Real Estate Investments


The world of real estate confuses a lot of people with its regulations, fees, and transactions. “That is one reason so many people stay away from it,” says Sonia Hodgin, the founder of Formulaic Inc. in Scottsdale, Arizona. “It’s a shame because there’s a lot of money to be made in trading properties, especially if you cut out the sales agent and use the formulas that create a passive cash flow. I founded my company because I wanted to give people the tools to trade wisely as well as avoid the middleman. The formulas I give my customers work, and they are building financially stable lives, some of them for the first time.”

Sonia Hodgin explains that many people don’t realize that they don’t have to use a real estate agent to oversee the sale or trade of their own properties. “That throws some of them,” she says, “and then they are intrigued. They want to know exactly how that is done. I have four services at Formulaic Inc. that help them understand so that they can get started on building their own portfolios.”

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.”

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, 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. There are over 300 formulas to use that can help them up their basis.”

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 – they 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 real estate commission sales fee, which can be up to 10% in commercial and up to 14% in real estate in a two-way transaction (selling and buying). That $170,000 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 attendee, as she is there as an investor. “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, 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. 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.”

Sonia Hodgin clearly loves what she does at Formulaic Inc., and she has sixteen other companies as well as investments throughout the United States. “I love my business life, of course, but I also enjoy volunteering,” she says. “One of my favorite experiences was with TREE (Tucson Real Estate Exchangers) in Tucson, Arizona. The members were all either licensed brokers or licensed real estate agents, and we met once a week. Some people had been members for 55 years, and one was as old as 92. I joined it as the youngest member and the only woman. I remember that when I walked in, heads definitely turned. They accepted me quickly, though, and we had a lot of fun at our meetings, even if I did stick out a little.”

Being different does not bother Sonia Hodgin. “Formulaic Inc. wouldn’t be the success that it is today if I had been afraid of thinking outside of the box,” she says. “Because I was willing to challenge the idea of using a real estate agent, people are learning more about what they can do with properties and how they can use them to build their wealth.”

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