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Realty411 Print • Online • Networkwww.realty411guide.com | Vol. 3 • No. 3 • 2011 A Resource Guide for Investors Declare Special $uccess 3 YEAR Anniversary in 2011 Issue! Make All of Your Goals Materialize! DAN REEDY Welcomes You to America’s Heartland The Owner of MOREKC.com Helps Investors Grow their Portfolio in Kansas City, MO

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on’t understand. much wealth has the past decade. e to go it alone, -The Million Dollar- Sweet SPOT experts. Network bringsrienced investorshare information each other. articles, videos,s and downloads Kathy Fettke I bye our members tovesting decisions no secret t’s first offered $8 mil- nce-in-a-lifetime banks that lion but were denied. w o u l d Six months later we rather buy offered $3 million andon, visit: Treasuries it was accepted. WealthNetwork.com today than lend syndicated this proj- to homeowners ect into 60 shares of or investors. Why $50,000 each and were not? They can bor- able to purchase the row interest-free property at auction — from the govern- which eliminated liens ment and then and liability. Profits are turn around and “lend” back expected to be quite astound- to the government for a profit. ing since the town homes only It sounds like another illegal need finishing work and con- scam that will ultimately hit the tracts are already in place for American taxpayer — a pretty end-buyers. common story these days. While we’re still finding in- We can get mad or we can get credible deals in single-family even. Either way, if we want to homes around the country, protect ourselves and our chil- we’re seeing the steepest dis- dren, we have to learn to play counts in the larger units that their game. Since financing most individual investors can’t availability is tighter than ever, afford. Apartment buildings in that leaves us a huge opportu- Texas are another sweet spot nity to get great deals. that we are aggressively target- The sweet spot right now is ing now. with properties that are out of If you’re tired of making mul- the average investor’s reach tiple offers and competing with but too small for hedge fund hundreds of other investors, investors. There is just not a consider joining our network market for $1 million to $10 (it’s free) and team up with us million deals. Distressed prop- on the big stuff that has higher N ATIONAL R EAL E STATE erties in this range are heavily discounts and less competition. I NSURANCE G ROUP , LLC discounted, giving huge returns You can also download your for those who can manage to free report on “7 Steps for New acquire them. Real Estate Investors” on our At Real Wealth Network, we main page: have over 6,000 members so www.RealWealthNetwork.com deals come across our desk all Kathy Fettke is the host of the day long. This gives us the abil- Real Wealth Show, Saturday ity to cherry-pick the best ones. mornings at 10 to 11 on 1220 For example, we were told AM KDOW. For information, about 27 almost-finished wa- contact: 925-280-2830 or 888- terfront townhouse in Portland RWNETWORK (796-3896) or in the highly desirable Pearl Kathy@RealWealthNetwork. District. The construction bank com DRE License # 01509755 failed so the developer couldn’t Real Wealth Network has ex- finish the work. The FDIC took panded with offices now in over the $12.8 million note. We Malibu & Walnut Creek, CA. Realty411Guide.com PAGE 5 • 2011 reWEALTHmag.com

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Everyone Can Become Realty411 & AN ENTREPRENEUR Wealth Real Estate Dave Lindahl in front of one of his numerous multifamily complexes. FOUNDER Linda Pliagas info@realty411guide.com EDITORIAL STAFF Lori Peebles Matt Malouf Anita Woods Brianna Bertrand COPY EDITORS Lorie L. West Lydia Pliagas PHOTOGRAPHERS Sam Green John DeCindis COLUMNISTS Dave Lindahl Charles Salisbury ADVERTISING Kelly Global Marketing info@realty411guide.com EVENTS & EXPOS Lawrence Ruano ruanoinvestments@gmail PRODUCTION Lori and Mike Hampton by Dave Lindahl T Emma Krull - The Dab Hand CALIFORNIA DISTRIBUTION Professional Distribution Solutions here is a common belief that only the person dreams about. 1.877.418.6500 few people that have the desired For instance this thinking can be NATIONAL DISTRIBUTION attributes can be entrepreneurs, about what is the purpose of coming to KJ Banks: 805.377.6328 but this is not true. Entrepreneur- this world? What can I give to this world PUBLISHED BY Manifest Media Partners ship is for everyone and there are numerous and what best can I do for people? And Nikolaos K. Pliagas - Chairman reasons for supporting this statement. questions like these can help you drive SUBSCRIPTIONS/INFO: 310.499.9545 The first and the foremost reason in this your vision or dream which you want to Realty411Guide.com | reWEALTHmag.com fulfill. regard is that everyone has a dream which info@realty411guide.com Join Our Social Network Today: http://realty411guide.ning.com Having a positive approach for the Published for Investors by Investors Realty411 and Real Estate Wealth magazines are published in future and thinking optimistically is the Los Angeles by Manifest Media Partners (mailing address: 4221 Neosho Ave., Los Angeles, CA 90066). Publishers are not re- right way for achieving your dreams... sponsible for unsolicited manuscripts, photographs and/or other materials. ©Copyright 2010. All Rights Reserved. Reproduction without permission is strictly prohibited. The opinions expressed they want to fulfill or at least have a desire One could learn about its strength and by writers are not endorsed by the publishers and/or editorial staff. Before investing in real estate, seek the advisement of a trusted fi- to improve their quality of living. This per- weaknesses by searching his personal nancial adviser, attorney or tax consultant. Real estate investing is ception of human beings leads to encour- history in the past in which he has a risky and may result in loss of capital. Please invest responsibly. PRINTED IN THE USA. GOD BLESS AMERICA agement for working hard and getting what number of experiences that caused him Connect to our virtual network today! they want, this perception is commonly difficulties and obstacles in his way of known as intuition. It is a kind of poten- success. From these past experiences the tial in human beings that leads to creative person could learn not to repeat his mis- imagination. takes in the future and to use his weak- Human beings are the best creation of nesses as his strength. God that is given the power of creative This is the common thinking of ev- thinking and through this thinking they are ery person that looks into his past and able to do a lot of creative tasks. This cre- gets out his mistakes, but one thing that ative thinking can be from the past, present differentiates an entrepreneur is that he and future and can relate to anything which Continued on pg. 46Realty411Guide.com PAGE 7 • 2011 reWEALTHmag.com

NOTICE Take Advantage of NOTICE Your time to qualify for one of the Your time to qualify for one of the largest real estate tax incentives in Your timereal estate tax incentives in largest to qualify for one of the largest Massive Tax Deductions Invest in the Go Zone, Before It’s to Late... U.S. history is almost up. If you would A fter six years of Go number of reasons: (i) Timing; real estate tax incentives in If you would U.S. history is almost up. U.S. history is Zone initiatives sanc- Go Zone tax incentives end like to turn federal income taxes that like to turn federal income taxes that almost up. If you would like to turn federal tioned by the federal December 31, 2011, so there government, the oppor- is a short window to income taxes that paid over the last 5 you’ve already you’veover the last 5 you’ve already paid already paid over tunity to turn taxes into take advantage of this the lastinto equity equity in the nation’s years into equity in the nations top years 5 years into in the nations top cash-flowing equities tax opportunity, (ii) will soon come to an The general economy emerging market, contact us imme- top emerging market,contact us immedi- emerging market, contact us imme- end. of the greater Biloxi Individuals seek- (Go Zone) area is ately. The The deadline for incentives diately. deadline for incentives is quick- diately. The deadline for incentives ing tax relief and growing quickly ly approaching. Inventory is is limited. is 12/31/2010. Inventory limited. is 12/31/2010. Inventory is limited. an opportunity to because of the increase their real Go Zone incen- estate portfolios will tives and the real es- need to hurry as one tate market are strong because of the greatest tax-saving pro- of the area’s growth. grams of all time will be expir- ing this year. Q: They say, “Time is of the To make sure we provide essence,” but the Go Zone readers with the latest news on Opportunity really is time the Go Zone, we recently inter- sensitive, please explain. viewed Brett T. Immel, a part- Immel: The Go Zone ends ner with Hanover Companies December 31, 2011, therefore LLC, the leader in Go Zone op- property that is Go Zone eligi- portunities. ble, new construction/first use, Since 1969, the principals has to be placed in service and of Hanover have been assist- closed by the investor before ing clients in creating wealth the end of the year. Most clients through real estate as investors, are utilizing bank financing and fund advisors, property manag- turn times with lenders are on Positive cash flow Positive cash flow Positive Cash Flow ers and developers. Read on to learn how to take advantage of average 45 plus days. Because of the time limitation, it’s im- Rated #1 Emerging market Rated #1 Emerging market the Go Zone, before it’s to late. portant to make a quick deci- Rated #1 Emerging Market sion and not delay the process. CALL NOW Question: Why is Hanover concentrating all their efforts Q: Besides the tax benefits in the Go Zone right now? available, this area in Missis- CALL NOW Immel: The Go Zone is actually sippi is experiencing consid- the Gulf Opportunity Zone and erable growth. What factors 877-373-2805 was created by legislation, to have contributed to its surge provide certain tax advantages in population? 877-373-2805 to companies and individuals Immel: Biloxi, Mississippi, has willing to invest in the rebuild- seen considerable growth and ing of the qualified tri-state area many sectors of the market haveINVESTMENT GOALS AND TAX LIABILITIES DIFFER FOR EVERYONE. GO ZONE IN-INVESTMENT GOALS AND TAX LIABILITIES DIFFER FOR EVERYONE. GO ZONE IN- INVESTMENT GOALS AND TAX LIABILITIES DIFFER FOR EVERYONE. GO ZONE IN-CENTIVES AND DEDUCTIONS MAY DIFFER IN TERMS OF GO ZONE QUALIFICA-CENTIVES AND DEDUCTIONS MAY DIFFER IN TERMS OF GO ZONE QUALIFICA- most affected by Hurricane Ka- contributed. Jobs, jobs, jobs is CENTIVES AND DEDUCTIONS MAY DIFFER IN TERMS OF GO ZONE QUALIFICA-TIONS. WE MAKE NO REPRESENTATION AS TO AN INDIVIDUAL OR PROPERTIES ELI-TIONS. WE MAKE NO REPRESENTATION AS TO AN INDIVIDUAL OR PROPERTIES ELI- TIONS. WE MAKE NO REPRESENTATION AS TO AN INDIVIDUAL OR PROPERTIES ELI- trina. all that we see and it has a di-GIBILITY TO RECEIVE GO ZONE BONUS DEPRECIATION AND/OR INCENTIVES. YOUGIBILITY TO RECEIVE GO ZONE BONUS DEPRECIATION AND/OR INCENTIVES. YOU GIBILITY TO RECEIVE GO ZONE BONUS DEPRECIATION AND/OR INCENTIVES. YOUMUST CONSULT A TAX PROFESSIONAL TO ENSURE YOUR ELIGIBILITY FOR GOMUST CONSULT A TAX PROFESSIONAL TO ENSURE YOUR ELIGIBILITY FOR GO MUST CONSULT A TAX PROFESSIONAL TO ENSURE YOUR ELIGIBILITY FOR GO Mississippi is the last state in rect affect on real estate. WhenZONE BONUS TAX DEDUCTIONS OR OTHER INCENTIVES.ZONE BONUS TAX DEDUCTIONS OR OTHER INCENTIVES. ZONE BONUS TAX DEDUCTIONS OR OTHER INCENTIVES.INVESTMENT GOALS AND TAX LIABILITIES DIFFER FOR EVERYONE. GO ZONE INCENTIVES AND which this special tax incentive Hurricane Katrina hit in 2005,DEDUCTIONS MAY DIFFER. IN TERMS OF GO ZONE QUALIFICATIONS, WE MAKE NO REPRESENTA- is available. The incentive itself it wiped out about 20 percent ofTION AS TO AN INDIVIDUAL’S OR PROPERTIES’ ELIGIBILITY TO RECEIVE GO ZONE BONUS DEPRE- (including Mississippi) will end the housing sector when otherCIATION AND/OR INCENTIVES. YOU MUST CONSULT A TAX PROFESSIONAL TO ENSURE YOURELIGIBILITY FOR GO ZONE BONUS TAX DEDUCTIONS OR OTHER INCENTIVES. soon. Hanover has been con- markets saw overbuilding and centrating in the Go Zone for a excessive supply. Markets like Realty411Guide.com PAGE 8 • 2011 reWEALTHmag.com

Miami and New York City currently haveso much existing supply that absorptionlevels are five years plus, meaning it willtake over five years for this inventory to besold. This is not the case in Biloxi. Thirty-five percent of the market is madeup of government-related jobs, mainly be-cause of Keesler Air Force Base. Keeslerhad a $1.1 billion economic impact onBiloxi’s population of 250,000. Buying real estate close to a military baseis never a bad idea because as log as thebase is active, there will always be consis-tent government funding and jobs beingcreated. Tourism provides another thirty National Real Estate Insurance Group & Affinity Group Management Combine Forces N ational Real Estate Insurance buy-and-hold investors and fix-and-flip in- Group/Affinity Group Manage- vestors. ment has had a unique approach NREIG/AGM is perhaps so uniquely de-percent of the market, mainly because of to meeting their clients’ insurance needs signed and suited to meet their customers’the casinos. since 1999, and it’s paying off for them. needs because Wrenn and another of the Biloxi is the second largest casino market Their program allows people to pay company’s owners, Tim Norris, are prop-with over fifteen land-based casinos (in- month-to-month for the coverage they erty investors themselves.cluding the Hard Rock and Beau Rivage) need, giving them the ability to change “We know the market countrywide be-and more planned for the future. Casino their plan to meet unique insurance needs cause we have professionals we insure whorevenue is up for 2010 and the occupancy as they come up. “We have the right cov- make their living off of their local invest-of the casinos has been very high. erage at the right time with a one-minute ments. We can access information about In addition to these two driving forces, email to us to change, as needed,” says various areas of most urban cities todaythere are many corporations in the area that owner Mike Wrenn. through local knowledge,” Wrenn says.contribute to job growth, including North- NREIG/AGM currently represents over He adds: “As an example, there are uniquethrop Grumman, Seaman Composites, 1,500 people and is adding approximately features to the Kansas City and MemphisRolls Royce and many others. 80 more a month; by 2012 they will have markets that only locals know as it pertains Lastly, in July 2009 Biloxi-Gulfport re- over 2,500 clients. The company consid- to crime and safety of the property in moreceived approval for expansion of the box ers their rates competitive and claims the inner-city locations. When we need helpand container port to essentially make it the stability of their program over the last ten understanding local conditions from streetlargest box and container port in the U.S. years to be one of their greatest strengths. to street in certain cities, we know whereThis is because of Biloxi-Gulfport’s cen- Investors can choose different deduct- to get it.”tral location in the U.S. and the expansion ibles and plans utilizing actual cash value Besides relying on their local contacts,of the Panama Canal (set to be complete or replacement cost, depending on their NREIG/AGM is actively involved within 2014). Bloomberg recently released a needs. many real estate groups around the country.report that Mississippi would see housing “The method we use to manage the in- “We attend over twenty Real Estate Invest-prices increase 16% by 2014 and Biloxi- ventories for our insureds, their payment ment Association (REIA) chapter meet-Gulfport would be the market with the terms and the right coverages account for ings,” Wrenn says.highest increase in prices. our success today,” Wrenn explains. To that end, NREIG/AGM is planning The bottom line is that the market is NREIG/AGM insures in all 50 states and to incorporate video correspondence withstrong and stable. Low unemployment and can easily follow their customers if they their clients late next year. Soon customersa consistent need for housing will contin- move. The company has IT systems that will also be able to manage accounts onlineue to grow this market for many years to track each location and can account for es- so that they will not be dependent on com-come. crowed payments by mortgage companies municating with representatives during — by Brianna Bertrand during the year. Clients can pay through business hours. — by Brianna BertrandFor more information about the Go Zone, credit cards and are not charged for cover-please contact Hanover Companies, LLC: age the month a property may be deleted; For additional information, please visit:877-373-2805. NREIG/AGM is therefore ideal for larger www.nreinsurance.comRealty411Guide.com PAGE 9 • 2011 reWEALTHmag.com

Our Real Estate Crystal Ball by Richard Barrett So, it appears that job growth encourages Sixty years later,W population growth. the job market hat would you pay to know has collapsed with where property values will People Drive Real Estate Values the demise of the grow in the next decade? How The purpose of residential property is auto industry, overmuch would a real estate “crystal ball” be to provide places for people to live. More 50% of the people haveworth to you? What if you had the “secret people need more places to live. Growth moved away, out migration continues at aformula” to find areas of growth? in Houston property values has been 19%, rate of 3,000 per month. Entire city blocks Well, you are in luck today, I am giv- 48%, and 106% for the past five, ten, and of houses stand empty and the city plansing away this secret formula for free! The twenty years respectively. The decline to bulldoze square miles of houses. Thesecret formula for growth in real estate val- from the all-time high—the bubble drop— long-term, growth prospects for real estateues is…(drum roll, please…) has been only 0.73% in Houston. Compare in Detroit are weak until the city can restart this to drops of 20-50% for properties in job growth and reduce its housing stock to jobs > people > property Phoenix, Los Angeles, Las Vegas, Miami, something nearer actual demand. and other metro areas that suffered from That’s right, the secret formula is sur- the boom/bust of the recent bubble. The RBS Investor Indexprisingly simple. Jobs attract people, and Demand for residential property depends To identify good metro areas for its in-people need places to live. A growing job upon not only the number of people in the vestors, RBS Homes has developed themarket brings more people, and people area, but also upon the housing supply. RBS Investor Index.drive rental prices and real estate values. Vacancy rates measures the demand for This index combines over thirty eco-It’s so simple that many experts will deny housing—the relative balance between nomic and demographic metrics to identifythis formula, arguing for special circum- people and housing. Inflation rates drive metro areas which will generate strong,stances of their particular investing loca- the housing price, as does the cost of lo- long-term growth over the next decade.tion. But, for the vast middle market of cal government. Also, the property type— For each of the top 500 major metropoli-real estate, this simple relationship drives single family, 1 to 4 multiple unit, or large tan areas (MSA’s), the RBS Investor Indexlong-term growth in rental prices and real apartment—significantly affects the prop- tracks changes in job formation, unemploy-estate values. Let’s explore this relation- erty value curve. So be careful in using ment, population, average income, housingship in detail. these metrics. prices and housing stock. I’d be delighted to discuss housing price Jobs Attract People Losing Population & Real Estate Value trends with you and to explore the trends Jobs attract people. As a simple state- Detroit is perhaps the poster child of how for your own favorite metro area. You canment, that seems pretty obvious. But, let’s the jobs > people > property formula reach me at:test that statement, using the major metro works in reverse. Sixty years ago, 925-858-9017 or RBS orarea of Houston, Texas, as one example. Detroit was known as Motor City, vest x In de Richard@RBSHomes.com InThe unemployment rate of the Houston king of the auto world and even Cr ys tal Ball es alu The Estate Vmetro area is 7.4%, almost 25% below the king of the MoTown sound. The for R eal Happy Investing,national average. Detroit metro area had a population Richard Barrett ett Barr ichard by R S Homes RB In the past ten years, Houston has seen of 1.8 million in 1950, a strong job RBS Homes �� growth of 270,000 new jobs. By compari- market, and a strong housing market. http://www.rbshomes.comson, each of Los Angeles, San Francisco,and Chicago have lost 100,000 jobs in the ��past ten years. In Houston unemployment Join Us for Our VIP Property Tours ��is down and job growth is up. Over the past �� five years (June 2005-June 2010) Hous- �� ton has ranked #1 in job growth, adding Join Us for Property Tours in 2 Cities �� 129,000 jobs. In contrast, over the same Houston, TX & Phoenix, AZ �� period, Los Angeles lost 376,000 jobs, �� Meet Our Affiliates, Property Managers & On-the-Ground �� Detroit lost 329,000 jobs and Chicago lost �� Teams in Both Cities! Featuring Both Long-Term Hold & ��253,000 jobs. �� Houston Tour �� Houston is the sixth largest city in the is March 12 & 13 Long-Distance Flip Opportunities. Realty411 Print • Online • Networkcountry, with a population in the metro A Full Day of Education * Small Group www.realty411guide.com | Vol. 3 • No. 3 • 2011 A Resource Guide for Investors Phoenix Expo & Special 3 YEAR Anniversary Reserve Now - Small Tour Fee May Apply Issue!area of 5.8 million people. Over the past Tour Dates are rten years its population has grown by 24%, Look fo al e March 19 & 20 *This entire trip may be tax deductible, check with your CPA More R ripsthe third fastest growth in the top ten cities, DAN REEDY Welcomes You to T Estate 11 America’s Heartland Call 310.499.9545 or info@Realty411Guide.com The Owner of MOREKC.com in 20 Helps Investors from Aroundbehind only Dallas-Ft. Worth and Atlanta. the World Grow their Portfolio in Kansas City, Missouri !Realty411Guide.com PAGE 11 • 2011 reWEALTHmag.com

On Location in Memphis, TNT the Cash Flow Pros by Linda Pliagas hey came from Kansas City, Baton Rouge, Los Angeles and Indianapolis to Mem- phis, TN. Investors from a share their Secrets at their REI EDGE Event distance mingled with local wholesalers, agents andbrokers. All were there to spend three dayslearning from one of the most success-ful families in the real estate industry, theClothiers. “We’re going to pull back the curtains andreveal all of our secrets,” Kent Clothier Sr.said — that was enough to prompt me toreturn to Memphis only one month after myinitial visit. The Cash Flow Pros’ “REI Edge” three-day event, hosted by Kent Sr. and his sonsChris, Brett and Kent, covered every gamutof the real estate industry imaginable. Fromproperty management, customer service,private money and marketing, no stone wasleft unturned. Kent Sr. revealed that they were in theprocess of developing educational productsand the event offered a perfect opportunityfor them to fine tune their programs. The room of about 50 real estate investorsand industry professional was initially ledby Kent Sr. who has purchased, renovatedand sold thousands of properties around thecountry. It was his idea to round his sons to-gether in Memphis to take advantage of the The Clothiers, from left to right: Brett, Kent, Chris and Kent Sr.phenomenal buyer’s market in Tennessee.Together the Clothiers have been involved was one of their own local competitors who Chris says that in order to remain suc-in diverse real estate markets, including also caters to long-distance landlords. cessful, they focus 80% of their time onTexas, Colorado and Florida. One of the most helpful tips given to us building a buyer’s list. Some of their other What drove them to the Memphis market by Chris Clothier for dealing with today’s secrets for their incredible sales volumesis exactly what drives Californians to buy tough lending industry was the compilation are creating “call-to-action” marketing2,000 miles away from home: Cash flow. of “The Bank Book.” pieces, which ignite prospects to reach This Clothier secret weapon provides an out. “You are always marketing yourself, it REI Edge: The Cash Flow Pros organized and effective way of presenting never stops,” Chris admits. Reveal Their Secrets their company’s information to a banker Once an investor becomes a client, the when trying to procure a loan. Clothiers say they will be repeat custom- At the Cash Flow Pros event, which was “The Bank Book puts me in front of the ers and refer others as well because of theirvideotaped to be the blueprint for their pack,” Chris said, adding: “I have used this philosophy of “over performing and givingnew educational company REI Edge, each as a great ice breaker.” clients more than what they expect.”Clothier spoke about the unique talents they Chris said his book contains a mission Eric Hobbs and his wife listened intentlybring to the company. statement, an executive summary and an while the Clothiers spoke. Normally they Kent Sr. taught the group his secrets in introduction to his professional team, even are employed by the Clothiers as leasingproperty management, customer service before the financials are presented. The agents, but today they consider themselvesand rehabbing. Chris revealed tons of mar- key is to present your organization as the their students.keting secrets and tips for acquiring private best company in town, one that they should “The information they are giving islending. Kent, who lives in Florida, moti- want to be doing business with. great,” he enthusiastically said. Whenvated the audience and sprung them into Another key issue touched upon during questioned about why he took three daysaction. this informative weekend was sales, some- away from his tenant placement business, The event was opened up to anyone who thing the Clothiers know a lot about. In the novice wholesaler replied with a smile,was interested. Friendly competitors from fact, they consistently sell over 200 proper- “I want to learn from the best in the busi-other markets eagerly attended. In the room ties annually. ness and that’s why I am here.” >Realty411Guide.com PAGE 13 • 2011 reWEALTHmag.com

Property Management & Customer Take Action NowService: The Foundation for Success After hearing three days of fantastic Although MemhisInvest.com now tips and information from one of theconsistently sell 20 homes on a monthly nation’s top brokerages that servicesbasis, mostly through referrals, it took out-of-state investors, the participantsyears of learning tough lessons for them were ready to return home and imple-to attain that level of volume. ment their newfound knowledge. “We were not successful at property To make sure that our mindset wasmanagement at first,” admits Kent Sr. right, the Clothiers asked audienceHe adds: “We lost a lot of money on this members to volunteer and address theside of the business, but we’ve come a room. They wanted to know how welong way in six years.” would implement the information into When the Clothiers started assisting MemphisInvest.com’s new goals and ideas.out-of-state investors years back they One gentleman from Louisiana ad-only sold the rental homes, they did not Spring Schedule 2011 dressed the room. He admitted that hehave contact with the investors after- Join the Clothier family at their property wasn’t doing enough networking in hiswards. Kent Sr. is the first to admit that buying events around the country. Come farm area of Baton Rouge.it didn’t go so well. Customers were not learn how to cash flow in one of the hottest Another investor also took homehappy, repairs were costly, the manage- markets in the country, Memphis, TN. a tip or two. “The biggest lesson Iment was in chaos. learned at this event is the amount of One of the ways that the Clothiers cre- Jan 13, 2011 - St. Louis, MO offers I need to make every month,”ated an improved system of management Marriott St. Louis West said Andy Ono, an investor and whole-is by bringing that aspect of the business 660 Maryville Centre Drive saler from Kansas City. Ono was alsoin-house so they have control over the 5:30 pm to 9 pm very pleased with all the informationproperties that their investors purchase. Jan 29, 2011 - he learned on property management. The mindset of MemphisInvest.com San Jose, CA While it’s easy for investors to makefrom simply selling rentals was trans- Doubletree a list of goals while at an event, the dif-formed into one where “the house is just 2050 Gateway Pl. ficult part is transferring that positivemerely a bi-product.” 8 am to 5 pm energy into action. Kent Sr. explains: “It’s all about the Feb 17, 2011 - Kent Clothier knows this all toinvestors. It’s all about the client. Our Santa Ana, CA well. The developer of the 1-800-character, our integrity and our honesty Doubletree SELL NOW vanity number and theare on the line.” 201 E. McArthur FindCashBuyersNow.com marketing Since they zeroed in on property man- Blvd. system, didn’t pretend to have a magicagement and on “exceptional customer 8 am to 5 pm formula for success. No pill or spellservice” their sales have skyrocketed. Feb 19, 2011 - can take the place of good ol’ fashionIn fact, most of their existing business is Los Angeles, CA hard work.generated by repeat customers (the aver- Embassy Suites “If you want big things to happen,age investor buys four rentals) and refer- 9801 Airport Blvd. you have to do big things. This ain’trals from current investors. 8 am to 5 pm practice, this is the game,” he said in Kent Sr. realized a tough lesson early March 12, 2011 - a matter-of-fact tone. “While you areon: “Without the investors being happy, Orlando, FL sitting around thinking, someone elsethere are no jobs in our company.” Now Orlando Peabody is already doing it. Either you act on itMemphisInvest.com takes a proactive April 29 & 30, 2011 - Memphis, TN or get out the way.”approach. “Our goal is that the investor Memphis Hilton The audience was quiet, the pressurewill never have to call our office.” 939 Ridge Lake Blvd., Memphis, TN 38120 was on as Kent continued his closing. To make sure the investors are kept “Ninety percent of the people will notup-to-date, their management staff call For more information, please call: act, I challenge you to not be one ofabout sixty investors per week with a re- (901) 751-7191 or visit MemphisInvest.com them.” It was time for students of theport on their property. Clothier real estate academy to create Again Kent Sr. reiterated that they their own success stories.turned a chaotic situation into a positive Sensing that the students were feel-one by merely shifting their focus from ing a little overwhelmed and skittish,properties to people. Kent Clothier lessened the intensity by “If you don’t have outstanding cus- smiling and giving us one last piece oftomer service, then you won’t have a friendly advice to chew on: “Don’t setbusiness for long.” out to build that wall all at once, just lay one brick at a time.”

MONOPOLY on Baltic Avenueby Lori GreymontR emember playing Mo- erties ready to be turned into nopoly and anxiously cash-flowing, wealth-building waiting to get that third engines.property of the same color so The first premise of thisyou could double your rent? strategy is that there still is aWhat if you had the oppor- market for homeownership thattunity in real life to purchase is underserved: working classthree, six, twelve properties at people who make enough toa time and start collecting on cover rent, but can’t get a bankall of them? The phenomenon loan.of massive numbers of bank- Working class people areowned properties hitting the willing to buy houses and aremarket means you can make willing to make repairs — atBy investing in bulk REOs, an individual canquickly acquire a portfolio of properties that will produce cash flow for years to come.just this kind of bulk purchase the right price. That price is(bulk REOs in real estate par- equivalent to rent. It makeslance). Bulk REO packages sense. Let’s say the averageprovide 10 to 15 homes (nation- rent in an area is $450. Offerwide) sold together for bargain a working person a privatelybasement prices. By investing financed home for $450 or lessin bulk REOs, an individual per month and they’ll take thecan quickly acquire a portfolio deal. And they’ll make the pay-of properties that will produce ments because they alreadycash flow for years to come. have a history of making rentalThese homes are not in the high payments. These loans are de-rent Park Places of the world, signed to succeed, not doomedbut in the working class Baltic to fail.Avenue-type neighborhoods— The second premise of thisone reason there is a low cost strategy for investors is that aof entry. right-sized, cash-flowing loan How low? You can get in the at 9.5% over 15 years is a goodgame for as little as $100,000 investment. Purchasing a cash-for a small portfolio of cash- flowing loan at a discount is anflowing properties or as little even better deal.as $200,000 for 20 plus prop- Bulk REO purchases put these premises into action. An active investor will purchase 10 plus houses and then resell them to owner-occupants with Continued on pg. 35Realty411Guide.com PAGE 15 • 2011 reWEALTHmag.com

How is Life Going? nance, events will shift to fit your attitude, your perspective. by Sam Sadat, founder of Los Angeles Real Estate Investors Club In the immortal wordsW of John Milton, “The e are always asking each other, This is the essential shift that mind can make a heaven “How’s life?” The same person makes the difference between out of hell or a hell out might reply that life is great on manifesting success rather than of heaven.”one day and then complain that life is terri- failure and abundance rather Is this starting toble on the next. Is this variation really a re- than scarcity. Never be a victim! sound a little too “outflection of the changing nature of existence, To help you in your quest to shift your there” for you? Perhaps this is a good timeor is it a function of human interpretation? I paradigm and make a quantum leap, I have to mention an unusual discovery that wasbelieve it’s the latter and here’s why. developed a quick technique called, “pause made in the field of quantum mechanics Life simply does what it’s supposed to. It and ponder.” By practicing this easy tech- when the science was in its infancy. It wasflows with no judgment, vendetta or favor- nique, you can become a more potent ob- discovered during the observation of atom-itism. It’s neither good nor bad: it is imper- server. ic particles that the act of observation wassonal. Life simply serves up the events you When something “unpleasant” happens itself changing the outcome of the experi-manifest. So don’t blame “life” for the bad in your life, just pause. Pausing is surpris- ment. If they changed the method of theirthings that happen to you. Existence doesn’t ingly powerful. Usually we try to protect observation they observed something dif-create the events in your life, YOU DO. If ourselves from uncomfortable circum- ferent. Change the perspective, change theyou don’t like what you’re getting, change stances in a reactive, unthinking way. We perceived. To put it mildly, this was quiteyour thoughts, words and deeds. Take re- immediately shut down, lash out or hide the mystery. Scientists have carefully con-sponsibility. Existence will respond. away. We don’t think about what we will firmed and described this phenomenon, but Many people make the mistake of ap- do; we just do it. Or rather, it “just hap- they still can’t explain it.proaching life as if it is the enemy. They pens.” Unfortunately, this reactive behav- Each of us is a powerful, manifestingdrive themselves crazy resisting what life ior is out of control. It tends to make the being, but it is important to remember thatbrings and learning nothing. You can curse situation worse than it really is, which in we cannot explain everything. This helpslife all you want, but life is innocent of all turn causes more reactive behavior. This us to remain humble and joyous in the facecharges. Life doesn’t even register your results in a negative downward spiral, and of the great mystery. William Blake said itcomplaints! Life is, after all, profoundly the self-fulfilling prophesy of victimhood. best in his famous poem, “Auguries of In-neutral and just, which is good. You want You become the victim you think you are. nocence”:a better life? Begin by changing your per- So remember to pause. Just stop. To see a World in a Grain of Sandspective. Try to see things differently. What Sometimes no action is required. Some- And a Heaven in a Wild Flower,are you ignoring or assuming that is lim- times it’s best to sit back and let things Hold Infinity in the palm of your handiting your vision? Take a moment to think play out a little — give a little space for the And Eternity in an hour.about that. Are you belligerently skeptical natural course of events. By being still and We must not try to control the world,and hopeless? Or are you open and clear, acting only when necessary, many of life’s only our perspective in it. This way ourready to assess situations without prejudice? problems magically solve themselves. manifesting becomes like a dance withOften we don’t really see what’s unfolding Learning to be still is the beginning of real existence. So now let me ask you: How isbefore us, instead we see it all through the wisdom. your life going?lenses of our previous conditioning. And But don’t just pause, that’s not the wholethen our responses are programmed. We technique. You have to pause and ponder. Best Regards,become like robots. Ask yourself: How shall I choose to see Sam Sadat When you choose to change your point of and process what’s just happened? What PS: I encourage you to associate with posi-view, a problematic situation is revealed in light will I see this in? This will prevent you tive, creative people and stay away froma new light. Suddenly new solutions pres- once and for all from blindly reacting to the those who lower your energy or hinder yourent themselves. They seem so obvious! You situation. But most importantly this will morale. For this reason we encourage youwonder how you could have missed them. give you a chance to gain some perspective to come to our monthly real estate meet-With this clear vision, and with these new and make a smart, positive choice. It will ings. When you come to the LAREIC’ssolutions, you become a more powerful and give you the power to change things. monthly meetings, you will not only learncapable manifestor. It is a mysterious, mystical truth that the nuts and bolts of the real estate from the All the great sages in human history have seeing things differently actually changes best in business but also get a chance forbasically said the same thing in different them. No one really understands how this personal development and self improve-words: Learn to look at events in a way works, but it does. I’m not saying that if ment, all in one incredible evening.that makes you stronger. Avoid subscribing you see your Volkswagen as a BMW it will For more information about us, callto interpretations that draw you down into magically become a BMW, you don’t get (800) 998-9930 or visit our websites:weak energy patterns. Seek interpretations to choose the exact nature of the change, www.samREclub.comthat strengthen you, that give you a choice. but rather that through the power of reso- www.investorfundingresources.com.Realty411Guide.com PAGE 16 • 2011 reWEALTHmag.com

All Aboard for The Elite Extraordinaire Cruise A Celebration of WealthT he Elite Extraordinaire Cruise is celebrating luxuryliving and self improvement in international law at Purdue University. Dr. Beres will lecture on topics concerning NEED TO CLOSE FAST?the high sees. The cruise departs present day world affairs. There We Have Millions of Dollars in PRIVATE FUNDSon March 17 from Miami, Fla., will also be an innovative seriesand docks March 31 in Los of complimentary interactiveAngeles, Calif. Guests will classes created to enhancebe sailing to the knowledge in thePanama Canal on the areas of arts and Available for investors who are ready to take advantage ofnewly refurbished entertainment, the current real estate downturn. Competitive rates & terms.Six Star Symphony business andof Crystal Cruises. t e c h n o l o g y, For more info call: The cruises’ l i f e s t y l e ,overall theme is wellness, wine 800.998.9930“A Celebration and food. Certificates of 1112 Montana Ave Suite 390of Wealth: Where business completion will be distributed Santa Monica, CA 90406meets luxury.” An atmosphere at the end of the curriculum.will be created where business Live entertainment andnetworking can take place in a multiple off-shore excursions Exclusively Serving theluxurious setting. Guests will will also be offered to guests Southern California Markethave the opportunity to listen of The Elite Extraordinaireto and meet renowned author Cruise. -by Brianna Bertrand License #00832641and columnist Louis Rene For more information, visit:Beres, Ph.D., a professor of www.eliteextraordinaire.com www.InvestorFundingResources.com

LEVERAGE is a Double-Edged Sword by Crystal Han from 360 Investments™ L everage is de- es”, which, like a double-edged requirements, Loan to Value ratios (LTV), fined as “the sword, can help you or hurt pre-payment penalties, and qualifications), use of an ini- you. Therefore, although high- approximate closing costs (loan fees, trans- tial investment, credit, est returns on investments can action fees, title, escrow, attorney, transfer or borrowed funds to be most desirable, an investor tax, document fee), rehab/renovation costs, gain a very high return must weigh the risk and rewards holding costs (taxes, insurance, payments), in relation to one’s in- carefully. Your goal should be income, expenses (property taxes, insur- vestment, to control to maximize leveraging power ance, management fees, and maintenance/ a much larger invest- while minimizing risk. repairs) and vacancy factors. “Leverage magnifies both gains and losses,” which, like a double-edged sword, can help you or hurt you. ment, or to reduce one’s own li- When evaluating and analyzing a prop- Net Operating Income (NOI) is calculated ability for any loss.” Leverage is erty, it is important to plug in all figures, in- by total income minus total expenses. Cash a powerful tool investors use in cluding current appraised value (as-is), af- flow is calculated by NOI minus debt ser- real estate transactions. Investo- ter repair value (fixed up), average days on vice (mortgage payment). Please note that pedia.com states, “Leverage market, purchase price, financing options debt service, also known as the mortgage magnifies both gains and loss- and terms (interest rate, down payment Continued on pg. 22Realty411Guide.com PAGE 18 • 2011 reWEALTHmag.com

Cash Flow with Dan in AMERICA’S HEARTLAND Missouri Real Estate Exchange Helps Investors from Around the World Invest in Kansas City by Brianna Bertrand F ive years ago in September, Dan and Nancy Reedy opened Missouri Real Estate Exchange (MOREKC.com) for business in a 10 x 20 foot office space with only two phones. Today their office in Grandview, MO, spans 4,000 square feet; they employ 10 people and another 30 to 50 subcontractors at any given time. Together, Dan and Nancy own a handful of properties and rentals that they’ve acquired over time since 2006. They have a long history in the real estate investing business. Nancy, for example, grew up with a father who bought distressed farms and land and would rehabilitate and resell them for a living. She bought her first investment property at 19, and went on to acquire one of her dad’s farms and subdivide it into estate lots to create her own high-end subdivision in Foristel, MO. She is both a Mis- souri and Kansas real estate broker and owner of MORE Homes LLC and MORE Property Management LLC.Realty411Guide.com PAGE 19 • 2011 reWEALTHmag.com

My dad always said, “Don’t are benefiting from the returns they’re seeingwait to buy real estate. Buy real in the U.S., as opposed to the lower amountsestate and wait.” they’d see in their own countries. People in Owning real estate has always New Zealand and Asia have also expressed in-been the foundation of Nancy’s terest in doing business with MOREKC.com.endeavors. She explains: “Real “The big draw to Kansas City is not justestate gave me the opportunity lower prices, [it is] due largely in part to theto quietly build wealth while stability of the market and a higher quality ofalso receiving income, depreci- tenant. The biggest reason investors from allation and tax benefits. I realized over the globe come to Kansas City now is dueat an early age I had a passion to the 100% turn-key product that we providefor design and started doing and the depth and scope of our power team,”specialty painting for myselfand friends.” Soon, Nancy says the word “No matter where you invest, property management is thestarted to spread. “I eventually key to the kingdom to insure that the investment performsstarted my own interior designcompany called Distinctly and gives you the profitability necessary to stay in the game.”Yours. It was a great match asI was already involved in realestate and now could put my Dan explains. “Right now 70% to 80% of theirtouch on people’s homes.” business are repeats and referrals. “We have Nancy says that people always kept the long-term vision in regards todon’t realize just how much a our investors’ properties,” Dan says and ex-little design work and specialty plains: “We tend to rehab our rental propertiespainting can improve the desir- to a retail status with new windows, HVAC,ability of a property. Within ceramic tile, and most recently, we have beena few years, Nancy ended up putting granite counter tops in a large numbertaking on the consulting and of our rental homes.”design work for a high-end Dan and Nancy have made some fantasticbuilder in Kansas City. “They deals with suppliers and it doesn’t cost themwere building new lake front much more to go high-end as it does to gohomes from $1 million and up Nancy and Dan Reedy cheap. They say the biggest benefit to theand we were doing the exposed timbers, higher-end rehab is that properties rent muchdistressing the hardwoods with hammers vesting for the Regular Guy.” faster, stay occupied longer and draw a betterand chains and creating really bold color The Reedys’ main focus with clientele. This makes for a much more profit-designs. It was a blast.” MOREKC.com, however, is keeping able investment for the investor enabling them The last big project she was involved in enough properties available for inves- to purchase more properties with confidence.before the couple’s start of Missouri Real tors. Their primary clients are investors MOREKC.com’s average rehabbed cashEstate Exchange was a $1 million-dollar from all over the country interested in flow properties are $30,000 to $40,000, whichrehab on a huge estate at a country club. Kansas City because of low property bring in rents of $600 to $900 per month. TheThe property featured suspended company does offer conventional financingstaircases, a wine cellar and it even with down payments of 20% to 30%, althoughhad a secret door in the library lead- it’s tough to attain in today’s climate.ing to a master bedroom and exercise Recently, MOREKC.com has announcedroom. that they are now able to finance some of their “Now I concentrate on the proper- cash- flow properties. The company’s privateties that we sell to investors, making lender has agreed to do shorter term full amor-sure they stand out and appeal to ten- tization loans on properties with a larger-than-ants or our retail buyers,” she says. usual down payment.One of the ways this is done is by The up-front cash flow will be less than aincorporating popular colors with a conventional loan, but the properties will belight staging to give the homes a little fully paid off in five to 15 years and there aremore warmth and desirability. no limits on the number of properties pur- Dan is a life-long resident of Kansas chased. With these shorter term and largerCity and knows the local market inside and prices and the higher-than-usual cash down payment requirements, the underwritingout. In less than five years, Dan has been flow the market offers. requirements are substantially less rigorous.involved with over 1,000 real estate trans- The Reedys started working with “The mortgage industry has all but said, ‘Noactions and 400 rehab projects. Dan also people from Canada and Australia ear- thanks,’ when it comes to investor financing,”hosts his own radio show, “Real Estate In- lier this year as well. Foreign investors Dan explains. “I have never been a big fan ofRealty411Guide.com PAGE 20 • 2011 reWEALTHmag.com

A Reedy Rehab hard money loans as they are so expensive. I finally was able to strike a deal with my private From Ugly to Elegant lenders where they will loan up to 70% of acquisition for up to 15 years non-recourse at com- S avvy inves- petitive interest rates.” tors always MOREKC.com’s new pro- Dan Reedy plays Santa want to buy gram has very few restrictions the ugliest house in and it’s taken off like wildfire. investor and tenant base. We the best neighbor- They currently have over 50 just recently hired a fantastic hood possible and properties that qualify for this accountant dedicated solely the Reedys are no financing program. to property management,” he different. The Reedys are also firm be- explains and adds: “Our staff They scour lievers that property manage- consists of five full-time leas- their market ment is key to the success of ing agents who are respon- for the best their company. sible for fielding rental calls, deals in the “We have had inves- best of areas tors find better deals on for their paper, but when their investors property management around the company could not per- world. After form their duties, the hundreds of properties sat vacant and rehabs under there was no cash flow, their belt, the Reedys are experts at turning run down, ugly those better deals turned houses into elegant homes worthy of exceptional tenants. into financial night- Would you like to turn a blighted home into a beautiful mares,” Dan says. “No matter where you invest, showing properties and getting masterpiece that can consistently cash flow? property management is the leases signed, a sales manager Please visit MOREKC.com to see the latest opportunities who is in charge of marketing key to the kingdom to insure available. Seller financing is now being offered! the properties, keeping track that the investment performs and gives you the profitability of appointments and section necessary to stay in the game.” 8 inspections. Plus, our maintenance department has three full-time maintenance men that keep our 400 plus units func- tioning 24/7.” The Reedys have also started a mentoring and training program for people wanting to Nancy Reedy learn how to profit in real estate inspects a new without spending thousands Dan & Nancy’s partner Jeffrey Lund acquisition on seminars, tapes and books. that needs a MOREKC.com continues to Their goal is to educate as lot of work. grow and expand all the time, many people as possible about This project is and the Reedys are constantly the current phenomenal buyer’s not for looking for ways to improve market. the novice. their company. “We have always stressed “The only way we can ac- to our local and national buy- complish this is with good ers that this is a small window people and processes and the of time that’s not going to last sense to know that we need to forever. If you are not actively Experienced investors constantly grow, improve and pursuing real estate investing as like the Reedys know stay current with the market,” a way to build long-term wealth that when a house is Dan says. then SHAME ON YOU!” Dan renovated just right, it “We are always tweaking exclaims. won’t sit vacant long. our processes and looking for For more information, please ways to improve service to our visit: www.morekc.comRealty411Guide.com PAGE 21 • 2011 reWEALTHmag.com

Leverage is a Double-Edged Sword, pg. 18 Leverage can be an investor’s best friendpayment is NOT considered an expense or worst foe so please be careful!and is not included in the NOI calculation.Cash on Cash return (COC) is calculated leverage. For example, getting financing and return on investment. It also gives youby cash flow multiplied by 12 (always an- at 80% LTV is being more leveraged than the option to select whether closing costsnually) divided by total investment (down at 50%. Therefore, when leveraging, make are financed or not financed, which willpayment, out of pocket expenses, and clos- sure you have a comfortable cushion of change the cash flow, total invested amounting costs, if not financed). POSITIVE cash flow to allow for vacancy, and return on investment. Return on Investment (ROI) is COC but repairs, maintenance and turn over costs. Quickly analyze your next investmentalso includes the tax benefits of deprecia- Also, make sure you have enough equity opportunity by visiting our website at:tion (paper loss) and principle mortgage re- in case you ever need to liquidate your as- www.360investments.net.duction. set. 360 Investments™ has created a FREE Online there are other software programs The higher the ROI could well mean the useful calculation tool, the “Deal Analyz- available that provide more extensive anal-higher leveraged you are. A high Loan to er,” which quickly calculates net operating ysis, like return on equity based on futureValue ratio (LTV) could also mean high income, cash flow, total invested amount, projected appreciation rates. Investors should monitor their invest- f o r C r e at ment figures monthly and keep tabs on R e a ive market appreciation/depreciation, rental l E s S olu t at e t i o n vacancies, rental rates, population growth, I nv s mortgage interest rates, job growth, unem- esto rs ployment rates, number of foreclosures, and other key economic factors. Leverage can be lowered by increased no credit score required property values, principle mortgage reduc- no-money-down investor programs transactional financing tions and additional principle payments. guidance & support Leverage can be an investor’s best friend for investors or worst foe so please be careful! For more information, please visit online: www.360investments.net Rent your property FAST HIRE Dorfman Property Management Our Available Services:Realty411Guide.com PAGE 22 • 2011 reWEALTHmag.com

Are You Profiting from the Credit Crunch? SPECIAL REPORT INSIDE! ANK in Today’s OU can Be the B ironment.”“Y HT Len ding Env TIG SPECIAL REPORT INSIDE BY: Ron Black, Investor, Texas Real Estate Broker and President of Texas Investor Homes Texas is the #1 Growth Market Investors are Needed to Fund Housing Projects

SPECIAL FREE REPORTProvide Short-Term Financing to Buildersfor High Potential Returns and Cash Flow By Ron BlackI f you’ve been looking for an easier cation!” Well I have a new one that is just when it came time to refinance, the lender way to invest in real estate then you as important in today’s real estate invest- guidelines had already tightened and the may find the answer in this report. ing market:“Change, Change, Change!” price appreciation had reversed and they Many years of experience in real es- Are you still trying to get 5% down or no were stuck “upside down” or “unqualified”tate has taken me from the traditional “buy money down for your investment property to refinance any longer. I can see many ofa fixer upper and rent it” to foreclosure and purchases? What about getting an 80/10/10 you reading this shaking your head becauseREO buying and rehabbing. I have dabbled loan as an investor? Are you endlessly this actually happened to you or someonein short sales and then finally in new con- bidding on foreclosures with no success? you know. The Glory Days of double-digit,struction opportunities before I discovered What about short sales? How many have year over year appreciation are gone withthe severe need for alternative builder con- you bought? The challenge for most real a few rare market exceptions. Low singlestruction financing. Although I had great estate entrepreneurs is to recognize digit appreciation is most probable for thesuccess with most forms of investing in when it is time for change. That time is next 10-year cycle. In other words, if you are going to make any money in this NEW market investing in real estate you better make it on cash flow because significant appreciation is unlikely in the foreseeable future. A Better Option to “Buying” Real Estate. So what are the options for potential high yielding returns on our real estate investment dollar if price appreciation is very limited and we are tired of the landlord game? What many frustrated investors are doing because of these lending changes is looking almost strictly for “Cash Flow” opportunities versus the long shot of price appreciation. One way many investors are achieving high cash flow is simply by “loaning” rather than “owning”. The opportunities are endless because builders are having an extremely difficult time finding traditional bank financing. Why are Builders Willing to Pay High In-yesterday’s market, I found that creative terest Now?and unique new construction real estate NOW. Right now the new construction real The real estate market is screaming rightinvestments were the most trouble-free estate market is SCREAMING that it needs now for alternative financing, especially inand profitable in today’s NEW real es- alternative builder financing. Are you lis- higher demand areas like Texas. Builderstate investment market. Yes, the market tening? in particular are hurting right now becausehas changed dramatically since 2008 and many banks absolutely will not loan towhat builders need from investors has What Happened to the Real Estate Party? builders regardless of the demand. Why?changed as well. Are you positioning your- The devaluation of many real estate mar- “Real estate” is a dirty word to banksself for this change? Net cash flow is the kets across the country coupled with in- right now. Banks that do loan to buildersname of this new game NOT appreciation. credibly tight lender financing guidelines do so at much lower levels than before even has depreciated many markets back to if their builder/client has been performingChange: More Important than Location? where they were eight to 10 years ago. That well on their loans for years. Listen to theSavvy investors always have their ear to the rapid price depreciation in itself hastened news every night and you will hear a storyground and their nose to the wind seeking the downfall of many seasoned real estate about banks “not lending”. Builders andnew opportunities. Savvy investors are also investors, not to mention banks and lending many other small businesses are beggingnot scared to change. We’ve all heard the institutions, etc. Since many investors were banks for loans. The sad part is that somereal estate axiom: “Location, Location, Lo- already using very short-term financing, of the very banks we as taxpayers “bailed

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