Realty411 Magazine - Vol. 3, No. 4


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Realty411 Magazine - Vol. 3, No. 4

  1. 1. This is Your Chance to Learn to Be the Bank! Private lending can generate mas- sive cash flow with all these benefits, along with the security to allow you to enjoy the life you’ve always dreamt of. h MEET OURed What is private lending? TEAM A private lender is somebody (who is not necessarily licensed) that under-- GARY BOMERSHINE stands the secrets of private lending, Gary’s strong domain ex- and how to use OPM (Other People’s pertise in creative real estate Money) to make a ‘spread.’de transactions, sales & mar- Gary Boomershine Private lenders borrow money at ade Gary’s strong him a unique in keting, give domain expertise lower rate and lend it out at a higher ability to work with entre- creative real estate to grow preneurs looking transactions, rate, making a nice profit or spread,ide sales & marketing, give him a unique their business. just like the bank! ability to work with entrepreneurs looking to grow their Success in life comes with having GEORGE ANTONE Over the past five years, Mr. the knowledge to make the right George Antone his Antone has established decisions. WealthClasses offers reputation as an expert in Over the past five years, George has fields of private money as an the established his reputation you that knowledge. Let us help lending and trust deed expert in the fields ofbecomemoney investing, and has private a lending and trust deed investing and you build the wealth and the life national speaker and teacher hasthe subjects. on become a national sepaker and you’ve always wanted! teacher on the Banks borrow money at a lower rate and lend it out at a higher rate. CONTACT US TO LEARN MORE: Wealth Classes, LLC. ‘spread’ game. Banks make money, and so as private They’re playing ther- 1255 Treat Blvdys lenders we learn to be the BANK, for the same amazing benefits! Suite 230 Walnut Creek, CA 94597
  2. 2. Experienced investors know you need CASHFLOW first This Special SECRET Report Reveals: Investors, Just Imagine This... * Massive Cashflow Without Tenants! * Massive Cashflow Without Using Your Money! * Massive Cashflow Without Owning Properties! * Massive Cashflow Without Having Good Credit! * Massive Cashflow Without Qualifying For Mortgages!Imagine – appreciation without tenants, without qualifyingfor mortgages, without having good credit or using your ownmoney – or even without owning any properties!It’s Your Turn to Beat the Bank!WealthClasses will help you build wealth and the lifeyou always dreamed of; by helping you find the paththat works for you to get you there. You’ll discover howto get started, make money, save money increase cashflows and most importantly Build Wealth! Get Your FREE Report by Visiting: or Calling 1-888-888-3612 ext. 1
  3. 3. IK E ND !! the K L O D ney in N 4 o LA 01 m you T -4 kes R 4 a EA -80 m H 17 3High Net Yield Investments Single Family *12% to 15% Multi-Family *18% to 20% Turn-Key Properties! Quality Rehabs! Occupied w/ Great Tenants! Amazing Cash Flow! Hassle Free!Call Klondike at 317.804.4014 and Start Making Money Today!Indiana - Ohio - Michigan *Estimated projections. We advise all investors to perform their own due diligence and consult with their legal and financial advisors.
  4. 4. Realty411 Wealth Real Estate FOUNDER ADVERTISING Linda Pliagas Kelly Global Marketing 310.499.9545 EDITORIAL STAFF EVENTS & EXPOS Lori Peebles Lawrence Ruano Anita Cooper CALIFORNIA DISTRIBUTION Andre Sanchez Professional Distribution Solutions Brianna Bertrand 1.877.418.6500 COPY EDITOR NATIONAL DISTRIBUTION Anita Cooper KJ Banks: 805.377.6328 Andre Sanchez PUBLISHED BY PHOTOGRAPHERS Manifest Media Partners Sam Green John DeCindis SUBSCRIPTIONS/INFO: COLUMNISTS 310.499.9545 Sam Sadat Dave Lindahl Charles Salisbury PRODUCTION Emma Krull Join Our VIP Social Network: Augusto Meneses To Educate, Motivate & Inspire Real Estate Investors Realty411 - Real Estate Wealth is published in Los Angeles by Manifest Media Partners (temporary mailing address: HRS, Inc., c/o Realty411, 490 First St., Ste. C, Solvang, CA 93463). ©Copyright 2007-2011. All Rights Reserved. Reproduction without permission is strictly prohibited. The opin- ions expressed by writers and columnists are not endorsed by the publishers and/or editorial staff. Before investing in real estate, seek the advisement of a trusted financial adviser, attorney or tax consultant. Real estate investing is risky & may result in loss of capital. Please invest responsibly. PRINTED IN THE USA. GOD BLESS AMERICA Connect to our virtual network ~ online 24/7/365 YOU CHOOSE THE HOUSE... WE DO YOUR BIDDING                 N ATIONAL R EAL E STATE       I NSURANCE G ROUP , LLC                                  Visit us on the web: BIDFORECLOSURESAZ.COM hablamos espanol PAGE 7 • 2011
  5. 5. The Business of Investing Turn the Hobby into Full-Time Profit Ready to Exit Out of Your Day Job? Chris Clothier Shares Some Tips to Do Just ThatM any investors begin their real make sure you have the best rates to drive low and banks are very open to helping estate career part time with the up cash flow.” investors with good credit acquire loans at hope of one day turning their Investors also need to be proactive when good rates. Get them while you can.”hobby into a full-fledged business. Their dealing with vacancies. In this respect, If you dream of leaving your job for suc-goal is to be financially independent so Chris has learned tough lessons about keep- cess in the real estate industry, then Christhat they no longer have to work at their ing rentals fully occupied. “The first loss is recommends you surround yourself withcorporate job. To help out our readers the best loss,” he says and explains: “Inves- the most successful real estate investorswho are yearning for a way out of the rat you can. “Listen to their advice,” he rec-race, we asked Chris Clothier, co-owner of ommends, “it’s one of the wisest, to share his secrets you can make.”on how he was able to turn his pastime into Chris does exactly that both in his per-serious profit. sonal and professional life as a coach with The Clothiers (Chris and his brothers, Fortune Builders, one of the fastest-grow-Kent and Brett, led by father Kent Sr.), ing educational companies (not to mentionhave been real estate investors collectively #37 on the Inc. 500 list). He thinks hiringfor 25 years, but about 10 years ago, their a mentor makes a lot sense from a point ofreal estate investments went from hobby Left to right: Brett Clothier, Chris Clothier, reducing the learning curve and holding Kent Clothier, Than Merrill and Kent Clothier, Sr.into a full-fledged business. yourself accountable to your goals. In a short amount of time, their portfo- tors have to understand that the first offer, For the Clothier family, they rely on eachlio has grown to include over 300 rental from a qualified tenant, might be the best other and valuable friends (some of theirproperties. (Additionally, they sold nearly offer if they are in a tough rental market.” business mentors who have helped their200 properties last year alone to investors He adds that many investors make the real estate investing company go back to theworldwide.) mistake of holding out for higher rent even late 1960s). They also spend a lot of time So how were they able to expedite their after a qualified tenant may request a rent participating in mastermind sessions withsuccess in a short amount of time? Thefollowing tips will help part-time hobbyinvestors to finally be able to toss that tie Maximizing monthly cash flow can be an investor’s ticketaway for good. out of a corporate job, so keep a close eye on all costs. The first step may sound simple enough,but it’s importance cannot be stressedenough. From their experience as investors reduction. Before saying, “No way,” Chris other entrepreneurs and business ownersand property managers, the Clothiers have advises investors to think carefully. who are able to provide feedback on ideasrealized that organization is crucial for “One vacant month can be the difference and give solutions to possible roadblocks.success. Chris explains: “Only after track- between a good year and a bad year,” he One thing to note is that the road to suc-ing and keeping clear records can investors warns. “So if they are quality tenants, work cess may not always be so easy, but if youevaluate their business and take it from the with them and get them in your property.” stay diligent in your efforts the path willstatus of hobby into a real wealth-building For the security of your properties, it’s eventually lead you in the right direction.machine.” important to reduce risk as much as possi- “Without going into great detail, I’ve Next, it’s important to keep tabs on ble, just keep in mind that a certain amount made mistakes,” admits Chris. He adds thatproperty expenses. Maximizing monthly of risk is good and needed for growth. In he is thankful because his past errors nowcash flow can be an investor’s ticket out business, as in real estate, a fine line exits help in serving his present clients. “I’veof a corporate job, so keep close tabs on between expansion and risk. Chris always bought the wrong property, I’ve made allall costs. “Keep an eye on such items as advises investors to “use leverage to help the mistakes that investors make, so when Itax appraisals, which effect tax rates, and build your portfolio.” work with clients, I know what not to do.”insurance quotes,” Chris advises. “Each of Now more than ever, leverage is im-these factors come right off the top each portant given today’s lending climate andmonth, keep track of them and periodically rates. “Rates will not always remain this - Interview by Andre PAGE 8 • 2011
  6. 6. A safe, lucrative and scalable blueprint for financial security The Banker’s Code by Courtney Jones A to deal with taxes, tenants, repairs...all the own money or even getting your credit ccording to the Bureau of headaches. And they get paid last. Always. checked. Statistics and the Department Compare what you do now to what the For example, using arbitrage alone, sup- of Social Security, if you fol- banker does. The banker has to learn secret pose you borrowed $100,000.00 at 8 per- lowed 100 people throughout strategies of banking; how to shift risk to cent and loaned it all out at 15 percent. The their lives and observed their financial sta- real estate investors. All they have to do is spread would net you $7,000.00 at years’ tus at retirement, you would discover that tell the world that they have money to lend end after paying back your funding source. only five percent were financially set and and the leads flow in. They don’t have to Not too impressive, perhaps, but when youon and Success of WealthClasses offers both ready to retire. Another five percent would deal with tenants, look for deals, or any- add leveraging into the mix, that’s when MEET OUR thing else but simply create mon- you really get to see private lending magic have to continue working to make introductory & advancedClasses ends meet, 36 percent would be deceased and ey out of thin air. Best of all, they in action. classes: get paid first! But you couldn’t TEAM Let’s say you leveraged the original an be summarized with one the remaining 54 percent be Self Paced Classes available online na- $100,000.00, which you borrowed at 8 per- • a banker, banks lend money GARY BOMERSHINE would be dead broke.: Financial Freedom for Everyone outtionwide 24 hours a day they re- cent, 4 to 1 at the same rate, which increased of the deposits that Gary’s strong domain ex- pertise in creative real estate Sobering statistics aside, ceive...or do available online nationwide financing to $500,000.00 total. Lending • WebClasses they? the transactions, sales & mar- there is a way to increase Gary and George teach their out the half million at keting, give him a unique 15 percent interest • students lending online nationwidewould pay out $35,000.00 at work with entre- TeleClasses available strategies ability to years’ end,d Success of your wealth without being chained to your desk all of WealthClasses offers both online nationwide after paying back your source(s).to grow • they Courses available Live call The Banker’s Code. evenMEET OUR preneurs looking introductory & advanced compelling Through their their business. Throughout their time spent teachings your life: passive income. Passive income, otherwise classes: • Videos and Audios available online program, individ- through WealthClasses TV 24 hours a day TEAM more than 250 uals learn how to students how tomarized with “mailbox money” known as one • Self Paced Classes available online na- Classes, Work- GARY BOMERSHINE ANTONEGEORGE use the hours a day secretsMastery • Nationwide to gen- banker’s Gary’s strong domainbecome five years, Mr. private Freedom a stressEveryone offers for free way of life tionwide 24 shops, and Seminars offered live on ex- Over the past that many seek but few find. Once you’ve erate passive income safely, and weekends pertise in creative reallenders, established his Antone has Gary and estate • WebClasses available online nationwide transactions, sales & mar- tapped into the power of passive income, without working as hard as they reputation as an expert in keting, give him a unique George have de- the fields of private money • Testimonials you won’t look at money or investing the TeleClasses investors. Their students did as available online nationwide ability to work with lending and blueprint entre- a trust deed vised ing the same wayaddition to gaining knowledge you•can have achieved ancompletely blown away with In ever again. incredible rate “I wasonline nationwide Live Courses available grow success that for preneurs looking to investing, and has become a their business. national speaker and teacherdecision. Boomershine start making Antone, of success; they have amount you learn, the Garyalso learn how to and George passive the quality, the learned they are sharing on the income through our affiliate program. real estate investors and lenders, • Videos and Audios available information...” Jay Biggs how to become theof online amount bank. with others. They ho embrace through WealthClasses TV 24 hours a day Private lendingwere mentored to be MEGA Mil- magic happens are offering an work with average individuals who are “... we l literacy get Gary Boomershine and George Antone exclusive oppor- GEORGE ANTONE seeking ways to improve their passive in- Nationwide Mastery Classes, Work- of breakthrough Promote Wealth Classes and • when you use a combination lionaires through George’s CONTACT US TO LEARN MORE:at work. Over the past five years, Mr. to a limited Start earning Money Today! weekends (other people’s money) OPM come stream. Teaching their students how shops, and Seminars offered live on Lim tunity system...” Dakota Antone has established his you can increase your numberWealth Classes, LLC. a free one to set up and replicate the most effective and leveraging; a fantastic seminar on really under- of individuals throughFreedom, “... it’s reputation as an expert in 1255 Treat Blvd way to create a passive income, students wealth by doing exactly what uncoventional wayson onethe fields of private money this session learn, step by step, a process of wealth cre- Testimonialslookingcreativehavethe banksAyyar Gary andstrategy trust deed In you the most standing and As a private lender, at cashflow...three differ- at you ”Anand do. lending230 session. Suite and will teach George investing, and has become auild wealthation that many onlyyou can of. n addition to gaining knowledge dream “I was ent lendingblown away with can be combined completely options which Walnut Creek, CA 94597 efficient method of providing passive in- national speaker and teacheralso learn how to start making passive d of; by help-As an investor, you work hard to create the quality, the amount you learn, the with other strategies to increase your pas- come available; private lending. amount of information...” Jay Biggs on the subjects. Support: ncome through our affiliate program.ks for you to a passive income for your family. When sive income exponentially: If you’re a “take charge” type of indi- (888) 888-3612 1 how to get “... we were mentored to be - This simply means thatney, increase you first started, you had to attend semi- Debt financing MEGA Mil- vidual who is willing to strike when you Promote Wealth Classes and everything you lionaires through George’s breakthrough CONTACT US TO LEARN MORE: nars, take classes, and learn you lend money out at a percentage and find theFax: opportunity, now is the best system...” Dakota Lim right Start earning Money Today! a successful real collect repayment of principal plus interest Classes, LLC. 287-1653 of this fabulous could about how to be for education and Wealth time to(925) advantage take e introduc- Share your passion “... it’s a fantastic seminar on really under- estate investor. You had to learn theWe y your path to knowledge for creating wealth! tech- on a monthly basis. offer, as the current market is a highly 1255 Treat Blvd 2 per- profitable one OUR WEBSITE@ Private standing creative and uncoventional ways VISIT for private lenders. y to Success,niques that work with different markets. at looking at cashflow... ”Anand - You charge aSuite 230 provide you with all of the tools you Equity financing Ayyar iness! Life as an as an Affiliate. means search- need investor now centage of the investor’s profits. Walnut Creek, CA 94597 lending has existed for decades because ing high and low for suitable properties, spending time and money marketing, talk- 3 Combination of both - You collect both it’s safe, it’s lucrative and it’s scalable. If a percentage on a monthly basis Support:you’ve been looking for the missing key to ing with a lot of people to discuss the deals, percentage of the profits as well. and a (888) 888-3612 generating passive income without all of submitting a lot of offers, and dealing with When you combine these lending strat- the headaches, you’ve found it! Fax: a lot of headaches. egies with arbitrage (spread) and lever- 287-1653out and (925) Check Share your passion for education and And then finally, locating a funding aging, your profits are greatly increased; start enjoying the freedom today that a knowledge for creating wealth! We your passive income stream offers. fast as possible. Investors get all without signing a loan, spendingVISIT OUR WEBSITE@ provide you with all of the tools you need as an Affiliate. PAGE 10 • 2011
  7. 7. Affordable Legal Protection for InvestorsI by Lori Ellen Fouts not a financial issue but a simple step as concerning questions. When was the last a prudent business-person to get the ad- time your health insurance company called f you are a real estate investor, agent, vice and help that you need to make the you to ask you to please use your policy? broker, home-owner or renter, you best decisions? Just think of the things you In fact, you may utilize your plan for most have often been presented with a could speak to an attorney about: Asset things the same day that you sign up and contract to sign. How many times protection, loan modifications, short sales, some pre-existing issues are also covered. have you had that contract reviewed landlord-tenant issues in multiple states For last ten years, my family and I haveby your attorney before signing?,Needless and identity theft, just to name a few top- been using the Pre-Paid Legal Life Eventsto say, that contract was written by some- ics. What if you could access a top-rated Legal Plan. This has helped us with the one else’s at- attorney in any area of law, whenever you day to day issues that come up for every- torney, an at- wanted, AND attorneys in ALL fifty states? one: The speeding ticket, getting a rental torney with This is where Pre-Paid Legal (PPL) comes deposit returned for our college-aged son, their interests in. PPL is built on the insurance model resolution to the credit card company ‘dis- in mind, not where you pay a monthly fee and then have crepancy.’ yours. a menu of available services that are cov- As for helping me as a real estate inves- Most of us ered under your plan. But unlike a very tor, I could not even begin to say how many do not call an attorney to costly health and auto insurance, Pre-Paid times that I have used the service, or could review our documents, Legal has built a successful and affordable even begin to calculate how much money I much less to simply ask a service. And unlike other types of insur- have saved by doing so. Actually, it would question or to find out our ance members are encouraged to use their be difficult to calculate the savings because rights because of the high memberships, and use them often! I can’t say I would have used an attorney hourly costs. Often we To encourage the Pre-Paid Legal mem- at $200-$500 per hour every time I needed don’t know whom ber to use their plans right away, they offer advice on a landlord-tenant issue or have to call. What if call- a comprehensive will at no charge, and en- ing an attorney was courage you to call an attorney to ask any Continued on pg. 54
  8. 8. Market Spotlight: JACKSON LOCATION: Jackson, MS COMPANIES: and other investors in our community are HomeStar, LLC having great success. Jackson, Miss., was Premier Equity not a bubble town, we were never inflated Group, LLC like other high-appreciation, over valued CONTACT: areas. We are still retailing houses, there- Julie Harrison fore we still have great comps and a good (601) 291-0689 mix of home ownership in the areas where Justin Harrison we are providing investment properties. (205) 616-3761 The banks are the one’s taking the bath. We continue to pick up their discounted inven-Q: What kind of opportunities are tory, get the property rehabbed and get ityou seeing in your market? performing again. We’re not sure how longJulie Harrison: Simply put, great its going to last, but we are going to takecash flow. Our investment team cent down financing. Our bread and butter full advantage of this slump.has established relationships in our com- cash houses can be acquired for $48,500, Q: What is the best part of being an in-munity that allow our company with an average rent of $750. It’s really vestor in your city?to acquire quality single family hard to beat! Mississippi Julie: The demand for Jackson and ourhouses in stable neighborhoods, property taxes are among houses has been awesome, we stay soldcomplete with renovations, the nation’s lowest, also out. Investors from across the country areleased and set up with property contributing to the great coming in weekly. We have met investorsmanagement.Our price points are cash flow equation. from California to Australia, investors fromhard to believe sometimes. For Q: How is your market almost every state have contacted our com-example, our investors are able to handling the economic pany at some point. I have built highendpick up a 4 bedroom, 2 bath full slump? new construction houses for 30 years, mil-brick newly renovated house for Justin Harrison: It really lion dollar homes. Now I’m buying middle$67,000, with an average rent of depends on who you’re income houses and have become a more$875, which are great for 20 per- talking to. Our company buy-and-hold investor. I wish I would have Julie Harrison
  9. 9. Join Us for started 20 years programs avail- ago, in the last able that inves- three years I’ve tors should know compiled 25 free Special VIP about? and clear rent- Justin: It’s becoming als. I’ve never more of a cash game had so much fun Property Tours everyday. With that with real estate. being said, we still Q: Why should in- Nice rental home in Jackson, Miss. have 20% down financ- vestors buy rentals in your area? ing available that most investors are aware Julie: You have to have two key compo- of. Conventional financing, we keep our Educational Investing Tours nents, the MARKET and the transactions clean, no TEAM. We’ve discussed the creative financing, it just in TOP Emerging Markets market and will continue to doesn’t work long term. Wealth Wealth Real Estate th A th A e Pu Sp blish e Pu Sp blish ec ec ia ia l Ed s of l Ed s of er er iti Real iti Real on ty on ty add content. The TEAM is fro 41 fro 41 A 20% down purchase m 1 m 1 Vol. 1 • No. 1 • 2010 Vol. 1 • No. 1 • 2010 invaluable. I would say we runs about $17,000 out of are bit seasoned, we’ve seen Shares His Secrets! pockets, includes closing Shares His Secrets! it all at this point. We’ve costs. Most investors can drilled down to the best ar- get up to four mortgages. eas, that yield the best re- We do have financing turns. We really believe in available for properties Serving the Needs of Accredited Investors - INSIDE: Information to Grow and Maintain Your Wealth Serving the Needs of Accredited Investors - INSIDE: Information to Grow and Maintain Your Wealth 16 19 35 buying a rental property in a Words of Wisdom from Maverick Investor Group Bruce Norris Prepares for Annual over four but you have Masters of Real Estate Reveals the Next BIG Thing “I Survived Real Estate” Charity home ownership area versus Janelle Harrison, baby Willow to have strong cash re- We’ve Been Investing buying a rental property in a & Justin Harrison in Jackson, Miss. serves. rental area. We like to have Q: What tips or ad- Out of State for YEARS, neighborhood pride. vice do you have for our readers? Come Learn & Profit! It all starts with picking a good house Julie: As always, due diligence is key in and ending with strong property manage- any venture and the understanding that we Meet Our Affiliates, ment. Our turn key approach tends to work are in a long term investment period. Buy Property Managers & On-the-Ground Teams A 20% down purchase runs about $17,000 in Cash Flowing Cities, out of pocket and includes closing costs. such as: Being • Houston, TX Lansy rda is dlo Ea with the best. We handle the transaction from and hold what you can within your means. start to finish. You have a performing in- With our company, we love for our inves- • Phoenix, AZ the RIGHT team! vestment from day one. tors to come visit us and ride and see all Q: What makes your company unique? the upside to Jackson. We want to meet you • Cleveland, OH Julie: Experience, thirty years of building has helped establish our in-town relation- and see you face to face. We want you • Indianapolis, IN ships from bankers to contractors. Over- to see what you’re • Birmingham, AL coming obstacles and backing up our work investing in. Re- separates our company from our competi- member this is a • Kansas City, MO tors. To back that up, we offer a one year long term relation- warranty on repairs. We are that confident ship. We want you • Butler County, OH in our houses. Going back to the TEAM concept, when you buy from us you join to be comfortable with our team and • and Memphis, TN our team. You become an investor with us, it’s a long term relationship we want to be Premier Equity Group Team: comfortable with Chris Donaldon and Justin PRIVATE & GROUP TOURS Q: Are there any special financing or the investor. Harrison at the Masters AVAILABLE Contact Us for Details and Tour Schedule — Log On to Our Private Network Featuring Both Long-Term FREE to Join * LIVE Chat Available Hold & Flip Opportunities! We design & deploy eMails or eFaxes to any demographic, industry or city Find Events, Deals, Friends & MORE Instant & Trackable - Special 10% Discount! 310.499.9545 | Call 310.499.9545 or Questions? PAGE 13 • 2011
  10. 10. Dorfman Delivers Success Outstanding property management is essential for success and with over 35 years experience, Dorfman Property Management is the industry leader in Indianapolis. The family-run company has owned investment properties since 1960. Jeff Ader, a Dorfman executive, tells us why the company is so special.Q: Tell us a bit about Dorfman Property common mistakes are purchasing in a high Ader: First of all, it’s always important toManagement, how did the company come crime or undesirable neighborhood and diversify your investment portfolio. Hav-about? not doing a thorough rehab. ing different asset classifications, such asJeff Ader: Dorfman Property Manage- real estate, stocks, bonds and precious met-ment was founded 35 years ago by Martin Q: Do you have many clients from out of als helps reduce risk in your overall invest-Dorfman and his daughter Miriam Ader state and other countries? ment manage family A d e r : Ye s , w e Secondly, people can build wealth andowned properties service many cli- accumulate a high net worth by buyingas well as provide ents from Cali- and holding rental properties over a periodfee based property fornia as well as of time. Here is a simple example of whymanagement ser- Arizona, Florida, rental properties can be such a powerfulvices for Indianap- Hawaii, Illinois, wealth generating investment:olis investors. New York, Ohio, Georgia and Exhibit A: $20,000 lump sum @ 5% inter-Q: From an inves- many more. In est at the end of ten years equals $32,578tor and managers addition, we havepoint of view, what clients in Italy, Exhibit B: $20,000 cash outlay on aare some common Australia, France $100,000 rental property which leavesmistakes that in- and Japan. $80,000 financed with 5% appreciation pervestors make? year at the end of ten years equals $82,889Ader: Overpaying for a property and not Q: Why do you think people should havedoing research about rent amounts. Other rental properties in their portfolio? Continued on pg. 16 Rent your property FAST HIRE Dorfman Property Management Our Available Services:
  11. 11. Northern California Based Real Estate Investment Club Expands South to Meet a Surge in Business by Linda Pliagas Kathy Fettke relocates to educate people locally and internationally about the op- to Malibu to set up a portunities that exist for real Los Angeles branch estate investors today.” Fettke, along with her hus- Malibu, Calif. - Real Wealth Network, the band Rich, director of busi-internationally-known real estate invest- ness development, and theirment club headquartered in Walnut Creek, 11-year-old daughter, Krista,Calif., has expanded its offices to South- moved to Malibu in Decem-ern California. For the past six years Real ber and have been busy settingWealth Network has assisted its members up a new home and businessin increasing their wealth through quality, resources and finding turn-key, Director of operations, Ronhigh cash flowing investment properties Manabat, remains at the Wal-nationwide. nut Creek office to oversee the Northern month in our pocket.” “We need to have a presence in North- California home base. The Real Wealth Fettke is a prime example of how savvyern and Southern California to be able to Network team plans to host monthly live investors can reside in their dream city andaccommodate our investors,” says Kathy events in both Northern and Southern Cali- fund a lavish California lifestyle with out-Fettke, CEO of Real Wealth Network. fornia. of-state rentals. Savvy investors can reside in their dream city and fund a lavish California lifestyle with out-of-state rentals. Kathy Fettke talks U.S. real estate in Australia.“Eventually we will include New York and The Real Wealth Show, a Top 10 weeklyChicago as well, but this is a good start.” podcast on iTunes where Fettke shares her The expansion came shortly after Fettke veteran real estate investing advice, is con-returned from Sydney, Australia where she tinuing to build an international audiencemet with over 300 interested investors who in over 25 countries.have since purchased hundreds of units in As an investor, Fettke is practicing whatthe United States through her network. she preaches. Malibu is a high-priced mar- While in Sydney, Fettke appeared on ket so she chose to rent a residence and buyCNBC’s Squawk Box and was interviewed additional rental properties instead.about the U.S. housing market. “The show Explaining her logic, “The mortgagehosts were amazed that properties could on our $1.2 million Malibu beach homebe purchased for would be twice what we pay inless than $50,000 rent. Instead, we are using thatand be rented for $1.2 million to buy investment To sign up for a free membership, visit$750,” Fettke re- properties outside of Califor- nia, which bring us three times You can also download your free report, “They’re not what we pay here in rent! It’s 7 Steps for New Real Estate Investors atused to those all about cash-flow. Renting Here youprices in Sydney our primary residence and buy- will find the CNBC interview: http://www.or Singapore. We ing rentals in more affordable to continue markets puts $8,000 more per 72&play=1 The Fettke Family in Maliub, Calif. PAGE 15 • 2011 PAGE 13 • 2011
  12. 12. Dorfman Delivers, pg. 14 As you can see you are utilizing as well as supervising leas- the power of leverage and ap- ing agents and office staff. She preciation of real estate which coordinates rehabbing vacan- can turn $20,000 into $83,000 at cies and maintenance of occu- the end of 10 years as opposed pied properties. In addition she to a savings account, which will communicates with owners to leave you $33,000. This doesn’t provide guidance about their in- even take into account a positive cash flow of $200 per month, which would add an additional $24,000 of income over the 10-year period. This clearly shows how powerful rental prop- erty can be as a long-term investment. Q: Tell us about InvestIn- The Dorfman team: Jeff Ader and, when did you decide Rhonda Steele attend a real estate event. to branch out and start the property sales division of the vestments and with tenants to company? solve problems on a daily basis. Ader: After managing hundreds Q: What makes your property of properties over the years management unique and why Having different asset classifications, such as real estate, stocks, bonds and precious metals helps reduce risk in your overall investment portfolio. for many individual inves- do you think your company has tors through Dorfman Property grown so much? Management, it became appar- Our company has extensive ent that investors needed guid- knowledge of Indianapolis in- ance in selecting, rehabbing and vestment properties both urban managing their rental properties and suburban resulting in the for maximum returns. The con- ability to advise investors as to cept of a turnkey real estate in- the best areas to maximize rental vestment company that locates, income and reduce expenses.. rehabs and positions the prop- We also have the capability erty for positive cash flow in the of managing a large volume of Indianapolis area InvestIndy. investment properties yet are com was born. able to provide personalized was formed to help clients lo- services to individual owners. cate quality properties, at great Our leasing/operations manager locations with the best cash flow personally reviews every tenant returns on their properties with application along with over- ABSOLUTELY NO EFFORT seeing the details of the rental on their part. process. Rhonda’s attention to Q: How long have you been in- detail and expert knowledge of vesting in real estate? the marketplace has resulted in Ader: I personally began invest- realtor referrals from all over ing in 1976. the country. Our philosophy Q: Tell me about Rhonda and is that by being responsive to her role in the company? prospective tenants seven days Ader: Rhonda Steele is the head a week, and being readily avail- of company operations and leas- able to set leasing appointments, ing. She is responsible for all maximizes the ability to quickly aspects of the leasing process lease PAGE 16 • 2011
  13. 13. The SJREI Association provides the educationand networking necessary to enable individuals tomake wise, profitable investments. Whether you have yet to purchase your firstinvestment property, or are working on your hun-dredth deal, you’ve found the bay area’s mostdynamic investors association. At our monthly meetings we host guest speakerswho are experts in their fields, providing insightfuland current information for the Real Estate Inves-tors. In addition, the SJREI Association meetingsare an essential tool to assist with building a com-prehensive real estate team for the individual inves-tor. With three chapters spanning the bay, SJREI Association offers its excellent programs and net-working opportunities at a location close to you. Our Mid-Peninsula Chapter meets in Foster City,the South Bay Chapter meets in San Jose, and theEast Bay Chapter meets in Pleasanton. The SJREI strives to provide its member withthe latest, up-to-date information on real estateinvesting. We are a one-stop-shop of resourcefulinformation for the novice to the experienced RealEstate Investor.Subscribe Today!Receive REI Voice™ Magazine for You found REI Voice™: the Voice of the Profitable Real Estate$19.95--that’s 35% off the news- Investor and the most recent endeavor of SJREI Association™ For questions or for contact information, visit:.stand price! For information, please or SJREI Association | (408) 264-3198 Website:
  14. 14. Dave Lindahl’sSyndication Secrets Learn How to Grow Your Portfolio FASTERK nown as the “Apartment King” est thee unit rental in a depressed area people’s annual salary! and the leading authority on of Boston. But he quickly made a goal How did Lindahl acquire so many commercial real estate invest- to acquire 1,000 units as quickly as pos- properties and accrue so much cashflow ing, Dave Lindahl currently sible, so he transformed himself from “a in such little time? Using a sophisticated owns more than 7,500 multi- dead broke landscaper” into a savvy syn- technique that investors call “OPM” (Oth-family units in some of the nation’s best dicator. er People’s Money).emerging markets. His private acquisition Within a short time frame, he was By offering accredited investors anfirm, the Bostonian Investment Group managing millions of dollars worth of as- opportunity to join him on deals, Lindahlalso owns interests in retail centers, self sets on a national scale. In fact, it only was able to reach his destination to realstorage facilities and office buildings took him 3 1/2 years from the time he estate riches much faster. He estimates Like most investors, Lindahl started started investing to be able to retire en- he’s raised more than $30 million in capi-out small. His first purchase was a mod- joying a monthly income larger than most tal from investors around the PAGE 21 • 2011
  15. 15. His success came so quickly and pro- real estate deal than they would have had package it all together?foundly that soon others began to request they not participated in the syndication. Lindahl: They basically take you step byhis knowledge, which led Lindahl into be- step throughout the whole process. Firstcoming a top educator in the industry. He Q: Dave, we know you come from a of all, I show you where the money is sohas shared the stage with such luminar- very close-knit family. Were your sib- you know where to find it. A lot of peopleies as Tony Robbins, Robert Kiyosaki and lings and extended family some of don’t know anybody with money becauseDonald Trump. In fact, Trump asked Lin- your early investors? they are hanging around in the wrongdahl to write a book on commercial real Lindahl: When I started investing, I be- places. So I show my students where toestate, “Trump University CommercialReal Estate 101: How Small InvestorsCan Get Started and Make It Big”. Lindahl has also authored numerousother books and courses including suchbest sellers as Emerging Real EstateMarkets, Apartment House Riches, andThe Real Estate Marketers’ Tool Kit. What’s most surprising is that Lindahlwas at first reluctant to accept responsi-bility for other people’s money, but he re-alized it was the only way he could reachhis goal of amassing 10,000 units. So, heset out to formulate a program to stream-line the process and ensure maximumsuccess. We recently caught up with Dave in be-tween his travels to discuss syndicationsand their importance in growing a well-balanced real estate portfolio. “The Real Estate Business is Really a MARKETING Business” came partners with my brother and sis- locate people with money.Question: When did you discover the ter, but they weren’t my investors. When Secondly, I prepare my students onpower of real estate syndication? I started out my siblings were all broke, what to say when they attend events orDave Lindahl: I started syndicating more so they did not have any money to put locations where there are people withthan seven years ago, when I realized into my deals. That’s why I had to go after money. I teach them the initial introduc-that it was easier to buy bigger properties investors. My father, who told me to stay tion and how to offer an opportunity. Wethan smaller properties. away from real estate when I first started never ask for money, we always offer op- I was self-funding my own deals before out, actually became a very large inves- portunities.that and I realized I was going to need a tor in many of my deals and still is. Next, we teach how to close for thelot more money to reach my goal. By then second presentation, which is usually amy objective had changed from [owning] Q: Is it a good idea to start with friends lunch or dinner presentation where you1,000 units to 10,000 units. I realized the and families when raising capital for lay out exactly who you are and what youmore I could get other people to partner syndications? do. Of course, students also learn how toup with me, the more deals I could buy. Answer: Doing business with family mem- structure the deals properly. bers can be a great way to start, but when One important thing to note is that ifQ: From an investor’s point of view, family and friends are involved there can you’re going to be pulling in money inwhat are some positive aspects to ac- be more emotional involvement in the a deal, you have to consider the Secu-quiring properties through a syndica- deal. I do see a lot of my students start rity and Exchange Commission (SEC). Ation? with family and friends then graduate to good part of the training is how to stayLindahl: Joining a syndication is great for larger investors. within the boundaries of SEC regulations.busy investors because they don’t have People always ask me: How do I avoidto deal with management, they can have Q: Organizing syndications takes a lot the Security Exchange Commission rules.passive income and participate in the ap- of skill, expertise and marketing flair. I always say, “You don’t, you just followpreciation of a deal. Tell us how your bootcamps and self- their rules, which are easy rules to follow Investors can also control much larger study courses help investors learn to but you have to know what they are.” PAGE 22 • 2011
  16. 16. The most important part of my tioning ?syndication training is how to man- Upcoming Events It depends on the market and the typeage the deal and how to manage by Dave Lindahl of property. We typically like to hold andthe investors. Now, I’m not speak- maximize the appreciation since the dealsing about how to be a landlord, I’m PRIVATE MONEY SYNDICATION we acquire have strong cashflow.talking about how to be an asset San Diego, CA ... May 20-22manage. Because as a syndicator, Q: Donald Trump asked you to writeyou have to manage your investors, the book on commercial real estate forwhich can be more difficult than FORECLOSURE BOOT CAMP his educational series, how was it tomanaging properties. Chicago, IL ... June 3-5 work with him? Lindahl: Donald is a true delegator. IfQ: Really, that’s interesting, why MANAGING THE MANAGER you’ve ever seen “The Apprentice”, he isis that, Dave? Boston, MA ... June 10-12 just like the way he is in on the show. He’sLindahl: Because of the emotions, tough, but fair and down deep he’s actu-because of the personalities. And COMMERCIAL TRAINING ACADEMY ally a very caring’s always the person who puts in Boston, MA ... July 15-17the least amount of money is always Q: Besides Trump who are some otherthe biggest pain in the butt! real estate leaders that you admire? APARTMENT HOUSE RICHES Boston, MA ... September 13-16 Lindahl: My first mentor was a guy by theQ: It must be such an awesome name of Mark Shavell from Cape Cod,feeling to know that people place Mass. He really introduced me to con-such trust and high regard in you Question: Your private acquisition servative investing and commercial realand your deals for them to invest with company the Bostonian Investment Group is known for acquiring large I also look up to Sam Zell out of Chi-Lindahl: It is. But when I first started, I multifamily complexes and I know you cago. He is known as “the grave dancer”,didn’t really want to be responsible for also invest in self-storage facilities, because he made his billions buying inother people’s money. It took me a while what other type of properties do you markets just like these, markets that areto start offering opportunities so that oth- like to acquire? down.ers could come into my deals. But a lot Lindahl: We also buy triple net leaseof people wanted to be Q: Besides commercialinvolved and I realized it real estate, your exper-would give us the ability to tise is also in locatingdo more deals. However, emerging markets, cana lot of responsibility goes you give readers a tip onalong with having other how to locate a boomingpeople’s money, and it area?takes time and special- Lindahl: It is all about jobized knowledge to be able growth and an increase into do that properly. population. We follow and read the business periodi-Q: What comes first: The cals on a regular basis anddeal or the investor? also research demograph-Lindahl: Both. The real ic business is really amarketing business. You Q: Do you have any otherneed to be marketing all tips or suggestions forthe time. You should be our readers?marketing for deals and Lindahl: Putting togetheryou should be marketing a syndication allows anfor money. investor to use leverage, If you don’t have [mon- to acquire larger deals us-etary] commitments for ing other people’s moneyany deals that may come (NNN) properties, office buildings, retail as equity. It also gives an investor con-up, when you go to negotiate for one, centers. Actually, retail centers are our fidence to get into larger deals knowingsubconsciously you will negotiate from favorite type of property acquisition at the they always have the resources behindweakness because you know you don’t moment. them.have the money. A lot of people actuallyself-sabotage themselves by doing this. Q: What is your current investing Receive Dave Lindahl’s book “Insider Se-I’ve heard that if it’s a good deal, the mon- style, are you buying and holding or crets to Creating Wealth” for FREE, sim-ey will come, but it’s always a good idea are doing short-term deals by reposi- ply call 1-800-559-8590 or visit:to be marketing for both at all times. PAGE 23 • 2011
  17. 17. Where Do You Buy Now? The Search for a 10% growth Market by Charles Salisbury, MBAA land), deduct the interest ll successful investments begin what it will be and create on your mortgage loan with a plan and action steps those growth markets that and the property taxes designed to support your ob- I seek. paid every year. Ad- jective. The more time you put You can find these mar- ditional expenses suchin to finding the right investment the more kets through various ways, as repairs and the 10%experience you’ll get and, like all other including reading national property managementthings in life, you will get better at finding publications like Forbes fee is also a tax benefit.the right investment opportunities. Mak- and Fortune that identify I’ve had people attending mistakes is part of the process because growth trends and publish my $39 seminar and tellthere is no perfect process or perfect in- lists of the 10 hottest urban me that they were of-vestment. People are different, investments growth markets or the best places to retire, fered real estate courses for $5,000 that willare different and results vary over time be- etc. Many other publications will identify teach them how to make a “fortune rehab-cause markets shift and what worked yes- growth areas. I occasionally receive tips bing foreclosures.” There are TV programsterday might not work the same next time. from residents of a local area that tell me glamorizing the role of “simple folk” whoSo, being adaptive and flexible is important about all the activity going on in their com- can “flip” properties and get rich. It’s goodwhen searching for the right place to invest munity. When you live in a growth area, entertainment, but it’s only for the profes-your money. you can’t help but know it. You can see and sionals. Looking for a growth area in real estate experience the growth. If you’re not in the real estate businessis no different. I will share with you the If you don’t live in a growth area but full time and able to do most of the workway I look for undervalued markets so that want to locate them, you can find out where yourself then it’s not for you. The risk isyou can mimic me or use my experience as Wal Mart and Kmart are building their new too great and the profits are too small. Youa resource to add value to whatever you’re Super Centers or find out where those new don’t need to spend money to learn howdoing. building supply houses are locating new to loose money under the false impression My initial goals are to locate areas of the stores. Lowe’s doesn’t build large stores to that you will “make a fortune”.U.S. where growth is almost predictable sell building supplies unless there is a need. Real estate is the number one investmentbecause certain infrastructure investments Using common sense and knowing what to in America and you can ensure your futurehave already been made. Growth areas are look for will be important in your search by building a secure investment real estateidentified by new roads or widening exist- for growth markets. business. You can also lose money by mak-ing ones to handle increased traffic. Usu- The final test for me is an actual visit to ing bad decisions and in real estate you ownally the growth areas are suburban as an the area. Go there, rent a car and travel the the mistake when you own the property.established and aging community finds its area. Talk to local residents and businesses The investment program that I outlinecitizens looking for better schools, better and ask about plans for the future. The lo- in this book is conservative and very dis-shopping and newer recreation facilities. cal residents know what is being planned ciplined and is designed to avoid commonCorporate America also searches for urban by reading their local newspaper. It costs mistakes and protect your investment.flight and growth to determine where they money to do research, but the reward will Faith in yourself begins with having faithare going to expand and build those new be a pay back for many years to come. in something or someone that has stood thesuper stores. County governments usually Because the demographics change over test of time. The advice in my book waslead the way by identifying urban areas that time it is always advisable to return to the inspired by every mistake I made in real es-are primed to grow and fund newly created website to locate the tate for the past 30 years. I wrote it to saveRedevelopment areas that will include new new areas of interest and see a selection of you the headaches and heartaches I’ve en-roads, freeways, industrial parks, schools homes in the 10% growth areas. Also, the dured in the quest for real estate success.and master planning to attract major retail- tax benefits may change over time. Despiteers and businesses. the fact that you are only putting 20% down Register online at www.TenPercentDown. In looking for growth that will support payment and using 80% of other people’s com for complimentary reports on any ar-my 10% property appreciation objective, money (OPM), you enjoy 100% of the tax eas the company is buying in and/or areI am a follower not a leader. Corporate benefits. researching. For more information aboutAmerica and local governments determine For example, you can depreciate your in- Charles Salisbury, please contact him vestment property over 27.5 years (not the at: PAGE 24 • 2011