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Realty411 Magazine featuring NORADA Real Estate Investments - FREE REAL ESTATE INVESTMENT MAGAZINE!
 

Realty411 Magazine featuring NORADA Real Estate Investments - FREE REAL ESTATE INVESTMENT MAGAZINE!

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Are you ready to learn about investing in real estate? Learn directly from TOP investors around the country for FREE with our investment print and online magazine. Our publication is the first and ...

Are you ready to learn about investing in real estate? Learn directly from TOP investors around the country for FREE with our investment print and online magazine. Our publication is the first and only viral real estate investment publication, enjoy!

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    Realty411 Magazine featuring NORADA Real Estate Investments - FREE REAL ESTATE INVESTMENT MAGAZINE! Realty411 Magazine featuring NORADA Real Estate Investments - FREE REAL ESTATE INVESTMENT MAGAZINE! Document Transcript

    • FREEISSUE!FREEISSUE!Grow YourWEALTHIt’s On UsMarco SantarelliLeads NORADAReal EstateInvestmentsto New HeightsStrategies toSKYROCKETYour PortfolioPlus, Where Arethe TOP MarketsFOR GROWTH?Insider Secrets:Investors Share Tips,Trials and Triumphs411411www.realty411guide.com | Vol. 4 • No. 4 • 2013 A Resource Guide for InvestorsPrint • Online • Network
    • EarnÊconsistent,ÊpassiveÊincomeÊinÊyourÊportfolioÊutilizingÊPRIVATELOANSÊandÊTAX LIENS.ÊOurÊfreeÊgiftÊtoÊyou:ÊTheÊMMGÊCapitalÊGuideÊtoÊTrustÊDeedÊInvestingÊLogÊontoÊMMGInvestors.comÊforÊmoreÊinformation.BEÊTHEÊBANK.SAFETY.ÊSECURITY.ÊDOUBLEÊDIGITÊRETURNS.www.JasonHartman.comPodcastThe Complete Solution for Real Estate InvestorsTMFeatured PropertiesPlatinum Properties Investor Network, Inc. helpspeople achieve The American Dream of financialfreedom by purchasing income property in prudentmarkets nationwide. Jason’s Complete Solution forReal Estate Investors™ is a comprehensive systemproviding real estate investors with education,research, resources and technology to deal with allareas of their income property investment needs.JasonHartman.comEarn 10-18% in Your IRA!Earn 18-35% with Income Property!ATLANTAProjected ROI33%Cash Flow$2,456DALLASProjected ROI35%Cash Flow$5,294MEMPHISProjected ROI29%Cash Flow$3,101See terms of service at:www.JasonHartman.com/termsYes, it is possible to:Realty411 / reWealth magazine is published quarterly from Santa Barbara County, Calif.© Copyright 2013. All Rights Reserved. Reproduction without permission is strictly pro-hibited. The opinions expressed by writers/columnists are not endorsed by the publishers.IMPORTANT DISCLOSURE: Publishers and advertising staff are not responsible for per-forming due diligence on the opportunities offered by magazine advertisers and/or spon-sors. Before investing in real estate seek the advisement of a trusted financial adviser, at-torney or tax consultant. Real estate investing can be risky and may result in loss of capital.PRINTED IN THE USA. GOD BLESS AMERICAConnect to our virtual network ~ online 24/7/365FOUNDERLinda PliagasPRESIDENTNikolaos K. PliagasEDITORIAL STAFFBonnie LasloRobb MagleyIsaac Newark IIIStephanie MojicaCOPY EDITORIsaac Newark IIIStephanie MojicaPHOTOGRAPHERJohn DeCindisCOLUMNISTSTom WilsonKathy FettkeChris ClothierLori GreymontRandy HughesJason HartmanRealty411 WealthReal EstateQuestions? 805.693.1497 or 310.499.9545BROKER/ADVISORSteve KendisPRODUCTIONAugusto MenesesWEB MASTERDiggs-design.comADVERTISINGKelly Global MarketingEVENTS & EXPOSLawrence RuanoRoberta EastmanDISTRIBUTIONProfessional Distribution SolutionsKJ Banks: 805.377.6328SUBSCRIPTIONS/ADVERTISING:310.499.9545Realty411guide.com/subscriptionsRealty411Guide.com | reWEALTHmag.comJoin Our VIP Social Network:http://realty411guide.ning.comRealty411Guide.com PAGE 3 • 2013 reWEALTHmag.com
    • Each franchise office is independently owned and operated.Our franchisees have purchased over 50,000 houses since 1996.PROVEN SYSTEM TO PROFITABLY BUY & SELL HOUSESHomeVestors®provides you with a system to follow & continuous mentoring & franchise support.RENTAL FINANCING NOW AVAILABLE FOR FRANCHISEESHome prices won’t be this low forever. Now is the time to buy & hold for long term wealth.FINANCING FOR ACQUISITIONS & REPAIRSWe make it quick and easy to obtain financing for your houses.M.A.P.S.–MANAGEMENT & PROFIT SYSTEMThis sophisticated software system takes the guesswork out of estimating repairs and keepsyou out of the “minefields” of making costly mistakes.NOW IS THE PERFECT TIME TO INVEST.You are in the right location at the right time to be aHomeVestors®franchisee, what are you waiting for?CALL 972-755-1880 FOR MORE INFORMATIONwww.TimHerriage.comJOIN THE EXPERTS INREAL ESTATE INVESTING!
    • 07 Publisher’s note08 Insurance myths11 Meet Tim Herriage13 It’s a seller’s market14 What are tax liens?16 Photo tips for investors18 Invest in mobile home parks19 Snail mail success20 Sound advice on leverage22 Flipping Boston on A&E24 Notes with Scott Carson25 Tips on rental management27 Questioning conventionwith Marco Santarelli31 Profile of Equity Trust35 Tony Martinez and notes36 Sensei’s entrepreneurial life40 The 401(K) sinking hole42 Coast to Coast REIA44 A secure investment?46 Nick Vertucci always wins48 Market selection advice50 Q&A with IPX/AZ52 The power of direction54 Benefits for investors56 Find your partnerscontents Here’s The KeyTo Your Real Estate Insurance Needs ...“ ”The Right Coverage At The Right TimeFor a Coverage Proposal, Visit or Call:www.nreinsurance.com888-741-8454• Occupied, vacant, and renovation properties can beincluded on the same schedule• Seamless monthly billing and reporting• Realistic insurance-to-value parameters• Theft coverage available on vacant locations• Coverages underwritten by AM Best “A” or betterrated insurers, such as Lloyd’s of London, Scottsdale,Allianz/Fireman’s Fund• Insure multiple owner/controlling entities underone inventory schedule• Basic or Special form coverage options• Premises liability of $1 million per occurrence• Liability coverage only is available• Available in all 50 states• Insure properties held in IRAs, Trusts, LLCs,Corporations, etc.• Embedded program(s) available for property managers,private lenders, and turnkey operators• Coverage available for non-US citizensIRCA-LA Changed It’s Name!We are the ONLY Club in Westside Club inLos Angeles offering FREE ADMISSIONMeetings are on the First Tuesday of Every MonthLEARN MORE AT:www.prosperitythroughrealestate.comRealty411Guide.com PAGE 5 • 2013 reWEALTHmag.com
    • “I changed one thing one timeand left the ‘rat race’ forever.I can show you how I did it,Matt TheriaultReal Estate InvestorFounder of EpicProAcademy.com and CashflowSavvy.comHost of the Epic Real Estate Investing Podcast on iTunes
    • Why I click, notdrive, for dollarssellers. Personally, I think the publicMultiple Listing Service is the mostunder utilized and under valued inves-tor tool that exists today… and it’sfree! Most investors simply don’t useor don’t even know how to gain accessto their local MLS. Think of the MLSas the industry’s library of knowledgethat holds valuable treasures, muchlike the real thing. (Our own publiclibraries are also greatly under uti-lized… coincidence?) The MLS in LosAngeles, www.themls.com, not onlyprovides guests with a listing of cur-rent properties, but it also has access towhat is pending, on backup, and whatjust sold. It’s an invaluable resource!Some investors mistakenly think thatby Linda Pliagas, publisher, investor, agentContinued on pg. 62Over the years, I have purchasedand sold many properties aroundthe country, from single familyhomes to multifamily complexes, the loca-tion and type of property may vary, butone thing that they all have in common isthat they were found on the MLS (Mul-tiple Listing Service). Most investors are taken aback when Itell them that I find my deals on the MLS.What about writing yellowletters? Don’t you use banditsigns or do any cold calls? Myreply is always: “Who has timefor that?!”Why should I spend money and pre-cious time on techniques like that whenall I have to do is a quick MLS searchto see today’s hot pickings. Driving fordollars? Have you seen the price of gaslately? No thanks, I’d rather comfortablykick back at home and click for my deals.Do you think distressed propertiesand motivated sellers do not exist on theMLS? Wrong! I found my three recentrehab deals on the MLS. That’s threesingle-family properties in distress withnearly $100,000 in equity in each one.I’ve also found my properties out ofstate on the MLS boards of their respec-tive cities. I’ve purchased rentals infive states, all found on the MLSat no cost to me. The MLS hasall sorts of distressed deals:REOs, short sales, pro-bates, trustee sales,corporate-ownedproperties, aswell as motivatedlinda’snoteRealty411Guide.com PAGE 7 • 2013 reWEALTHmag.com
    • Realty411Guide.com PAGE 8 • 2013 reWEALTHmag.comDEBUNKEDby Stephanie B. MojicaPeople tend to focus more onmaking fast cash with real estateinvestments and as a result oftendo not properly insure their assets.Beginning investors are especiallyprone to treating insurance as an optionrather than an essential part of theirbusiness plan, says Tim Norris, ownerand operator of the National Real EstateInsurance Group headquartered in Kan-sas City, Missouri.“Most of us consider insurance as a‘purchasing endeavor.’ That is, we eitherbuy it, or it is sold to us. Therein, inmy opinion, is the foundational faultof the process. The misconception is stillprevalent…insurance is mysterious, dif-ficult to understand, and, at best we hopewe can trust the person that is selling it tous,” Norris says.Norris, also a board member of theCincinnati, Ohio chapter of the non-profitNational Real Estate Investors Associa-tion, has garnered plenty of respect for hisauthorship of the PowerPoint presentation“13 Myths for the Real Estate Investor.”To create the document, Norris utilizedmore than 20 years of experience workingclosely with real estate investors to prop-erly insure their assets. Even if people donot ultimately purchase a policy throughhis company, Norris hopes his advice willstill help them protect their investments.Norris’ 13 myths are as follows:1. Insurance is exclusive of estate, tax,and financial planning.2. Being named as an “additionalinsured” on the existing homeownerpolicy will sufficiently protect my inter-ests in a subject-to and/or lease-optiondeal…3. Buying a property in your personalname and using your homeowner’spolicy liability is fine…4. The “personal” dwelling fire policyis sufficient to cover my non-owner oc-cupied rental…5. I have a personal umbrella policy(PUL), so I don’t need “commercialinsurance”…13 Insurance Myths for RE InvestorsContinued on pg. 55Image by by Djtaylor
    • www.WeCloseNotes.comTURN TOXIC LOANS TO REAL PROFITSFour Day WorkshopsOrlando, Chicago, San DiegoGet the Home Study Course and ClassNoteBuyingforDummiesWorkshopLearn HoW to:3Buy Notes for Pennies on the Dollar!3Direct from Banks and Hedge Funds!3Residential and Commercial Notes!3Buy and Sell Notes Nationwide!3Raise All the Private Money You Need!3Work Actual Deals in Class!Scott Carson’sTurningProblemPropertiesintoProfitableSolutions
    • Tap Into Nearly UnlimitedReal Estate Investment Capitalwww.TrustETC.com/Realty411888-382-4727SAVE THE DATE2013 Equity University Networking ConferenceSept. 19-23 | Omni Championsgate | Orlando, FLEarly Bird PricingONLY $597*www.equity-university.com/NetCon*Limited time pricing.© 2013 Equity Trust®. All Rights Reserved. ET0051-10Get Your FREE Real EstateCash Explosion Kit Today!($497 Value)This kit includesdownloads for:• Flipping Real Estate• Real Estate Acquisitions• IRA Real EstateInvestment Strategies• Case Studies ofSuccessful IRA Investors
    • by Stephanie B. MojicaReal estate entrepreneur TimHerriage has become sowell-versed in the ins andouts of the business that hecan buy a house from an owner justas easily as he can buy milk from agrocery store.Herriage, a native of the Dallas-FortWorth metroplex, spent the first fiveyears of his professional career asan intelligence analyst in the UnitedStates Marine Corps.In 2001, he decided to return to hisTexas roots and become a real estateinvestor. Herriage has purchased morethan 1,000 single-family houses inDallas, Fort Worth, Houston and SanAntonio and is involved in numerousaspects of the real estate investmentfield.Herriage founded the REI Expoin 2011. The 2012 expo, held in theDallas-Fort Worth area, offered at-tendees the chance to learn from Texasexperts in 66 classes over a two-dayperiod. Herriage requires speakers atREI Expo to offer good content andnot turn their talks into those morecharacteristic of a “pitch fest.”“People attend events like thisbecause they want to learn how to getinto that industry or get better at whatthey do,” Herriage said.“The last thing they want to do is sitthrough a weekend of sales pitches.”“Flip This House” A&E star DavidMontelongo was just one of the speakersat the 2012 REI Expo. When asked abouthis impressions of the expo Montelongosaid, “This group was more on the experi-enced side. They had good flow, com-municationand energy.I did somegood busi-ness andwill beback.”ModelMy Home President Jana Uselton spokeon staging homes to attract buyers. Sheand her team wrote up thousands of dol-lars in orders at the expo itself and saidmany more investors committed to workwith her.“We didn’t have to do any selling. Oncethey saw the hard numbers of the resultssellers are getting by staging homes it be-came a no-brainer for them,” Uselton said. “Out of all the seminars, trade shows andexpos we have attended, sponsored orexhibited, this was the absolute best eventwe have ever done.”At press time, the date for the 2013 REIExpo in Chicago was imminent. Herriagehopes to duplicate the educational valueat not only the 2013 event, but also futureREI conferences.Herriage, often lauded as one of themost successful investors and wholesal-ers in the real estate market, is presidentof Herriage Homes as well as a NationalDevelopment Agent for HomeVestors.HomeVestors, also known as “We BuyUgly Houses,” has purchased morethan 50,000 American houses since thecompany’s birth in 1989. Herriage, whois married and has two sons, regularlygives public talks about his experienceas a successful real estate entrepreneurwho also has a happy family life.“I enjoy meeting new people and trav-eling,” Herriage said. “I got my quickstart in this business by meeting peoplewho were willing to help me, and I try todo the same.”Whether Herriage is speaking to aroomful of people or an individual, hehopes the one message they take awayfrom their time together is that Herriagehas a mission to tell only the truth.“I love buying houses, but hate theDallas Wholesaler& Industry LeaderTim HerriageFrom local wholesaling to cross country travels forHomeVestors and the REI Expo, this former Marinerepresents a few, a proud select group of investors.Continued on pg. 30“I got my quick start in this business bymeeting people that were willing to helpme, and I try to do the same.”Realty411Guide.com PAGE 11 • 2013 reWEALTHmag.com
    • Your Default Property Acquisition SpecialistVisit PIP-West this July at the REI Expo in Chicago or in California this October.Please call PIP-West for more information: 877-335-25293Exclusive Savings when you register withPIP-West3More than 25 classes included with yourattendance3Engage with multiple resources/leaders inthe real estate investment network, who arethere to teach you how to succeed!More Than 400 Satisfied Clients and GrowingIn Chicago & Los AngelesCONTACT US, OR VISIT US ONLINE FOR ALL THE DETAILS• An Educational Opportunity for seasoned and newinvestors• No sales, no pitch, no hype - One of the best Educationaland Networking events of the year• Unique opportunity to meet our clients and learn fromtheir ongoing experiences• Learn to invest tax free with your self-directed IRA andwith the most trusted and respected Tax Lien/DeedAgents around• Clients/Current Investors will have an opportunity for one-on-one meetings with our staff to get “account check-ups”877-335-2529 | PIPWest.com877-335-2529 | PIPWest.com
    • by Kathy FettkeFrom 2007 - 2012, theUnited States expe-rienced one of thegreatest housing reces-sions in history. Pricesdropped over 50% in many areas,building came to a near completestop, and foreclosures made dailyheadline news. There was a glut of availablehomes to buy, but few people hadthe guts to pick them up at rockbottom prices. It was a perfect buyer’s market. The irony is, most people are afraid to buy in a buyer’s mar-ket, even though it’s the BEST time to buy! You can name yourprice, negotiate terms, and pick out the best value for bargainprices. But it takes contrarian thinking, and requires a sophisti-cated understanding of market cycles.Market cycles can change ona dime. Here we are in the 2ndquarter of 2013, and today’snews is all about the terribleLACK of housing inventory,multiple offers over asking price,and people waiting in lines whena property is released to thepublic. We are back in a seller’smarket. A seller’s market is good forsellers because there’s a lot ofbuyers competing for limitedinventory. High demand and low supply allows the seller to ne-gotiate, so prices tend to go up. We are seeing price increasesas much as 1-3% per month in markets like Sacramento andPhoenix. What is happening? Where did all those foreclosuresand short sales go? From Buyer’s to Seller’s MarketFrom Buyer’s to Seller’s MarketmarketupdateContinued on pg. 61Realty411Guide.com PAGE 13 • 2013 reWEALTHmag.com
    • Charles Sells doesnt like talkingabout acquiring real estate for"pennies on the dollar," because itsounds too much like a carnival-barker, late-night-TV, shady-char-acter pitch.But Sells, Director ofAcquisitions for Plati-num Investment Prop-erties West, often findshimself in the position ofoffering clients just that-- although hed prefer amore sober accounting ofthings."We try to take all thehype out of the water,"said Sells. "We offera conservative, high-yield opportunity that isbacked by governmentregulations."Its an opportunitythat just happens to give clients thechance to, well, you know. Sells andpartner Don Fullman have carved outa respectable corner of this niche mar-ket, and help investors navigate theseemingly endless rolls of red tapeCharles Sellsthat surround property taxes -- andwhat happens when property ownersdont pay them. In their effort, theyvediscovered a surprisingly safe invest-ment within a shaky market: acquiringtax liens and, often, deeds.Heres how it works, focusing onSells favorite markets at the moment,Illinois and Georgia: in both states, theprocess begins when at a tax lien auc-tion."In Illinois, what we buy is a tax liento the property," said Sells. "In 2013, wewould be buying 2012 delinquent taxes."Illinois has a redemption period, twoand a half years, during which the prop-erty owner can "redeem" their tax lienby paying off theback taxes plus in-terest; the bid ratestarts at 18%, and itcan be bid down toas low as zero. But,according to Sells,whatever your bidrate is, in Illinois itdoubles every sixmonths."So if you boughtit at 15%, youre ac-tually gaining a netannualized return ona paid-off certificateof 30%," said Sells.After the redemption period ends, if thelien is not paid off, the holder of the lien-- you, the investor -- can initiate foreclo-sure on the property.That process can take as much as aTaking the“The reason we continueto have our success isbecause our clientsare successful.”HypeoutofTaxLienSalesCharles Sells doesnt liketalking about acquiringreal estate for "pennieson the dollar," because itsounds too much like acarnival-barker, late-night-TV, shady-characterpitch.But Sells, director ofacquisitions for PlatinumInvestment PropertiesWest, often finds him-self in the position ofoffering clients just that— although hed prefer amore sober accounting ofthings."We try to take all the hype out of thewater," said Sells. "We offer a conserva-tive, high-yield opportunity that is backedby government regulations."Sells and partner Don Fullman havecarved out a respectable corner of thisniche market, and they help investorsnavigate the seemingly endless rolls of redtape that surround property taxes -- andwhat happens when property owners dontpay them. In their effort, theyve discov-ered a surprisingly safe investment withina shaky market: acquiring tax liens and,often, deeds.Heres how it works, focusing on Sellsfavorite markets at the moment, Illinoisand Georgia: in both states, the processbegins when at a tax lien auction."In Illinois, what we buy is a tax liento the property," said Sells. "In 2013, wewould be buying 2012 delinquent taxes."Illinois has a redemption period,two and a half years, during which theproperty owner can "redeem" their taxlien by paying off theback taxes plus inter-est; the bid rate starts at18%, and it can be biddown to as low as zero.But, according to Sells,whatever your bid rateis, in Illinois it doublesevery six months."So if you bought itat 15%, youre actuallygaining a net annualizedreturn on a paid-off certificate of 30%,"said Sells. After the redemption periodends, if the lien is not paid off, the holderof the lien -- you, the investor -- can initi-ate foreclosure on the property.That process can take as much as a year,according to Sells, and of course thereCharles Sells doesnt like talkingabout acquiring real estate for"pennies on the dollar," because itsounds too much like a carnival-barker, late-night-TV, shady-char-acter pitch.But Sells, Director ofAcquisitions for Plati-num Investment Prop-erties West, often findshimself in the position ofoffering clients just that-- although hed prefer amore sober accounting ofthings."We try to take all thehype out of the water,"said Sells. "We offera conservative, high-yield opportunity that isbacked by governmentregulations."Its an opportunitythat just happens to give clients thechance to, well, you know. Sells andpartner Don Fullman have carved outa respectable corner of this niche mar-ket, and help investors navigate theseemingly endless rolls of red tapeCharles Sellsthat surround property taxes -- andwhat happens when property ownersdont pay them. In their effort, theyvediscovered a surprisingly safe invest-ment within a shaky market: acquiringtax liens and, often, deeds.Heres how it works, focusing onSells favorite markets at the moment,Illinois and Georgia: in both states, theprocess begins when at a tax lien auc-tion."In Illinois, what we buy is a tax liento the property," said Sells. "In 2013, wewould be buying 2012 delinquent taxes."Illinois has a redemption period, twoand a half years, during which the prop-erty owner can "redeem" their tax lienby paying off theback taxes plus in-terest; the bid ratestarts at 18%, and itcan be bid down toas low as zero. But,according to Sells,whatever your bidrate is, in Illinois itdoubles every sixmonths."So if you boughtit at 15%, youre ac-tually gaining a netannualized return ona paid-off certificateof 30%," said Sells.After the redemption period ends, if thelien is not paid off, the holder of the lien-- you, the investor -- can initiate foreclo-sure on the property.That process can take as much as aTaking the“The reason we continueto have our success isbecause our clientsare successful.”HypeoutofTaxLienSalesRealty411Guide.com PAGE 14 • 2013 reWEALTHmag.com
    • are going to be attorney and court fees,plus any additional back taxes will needto be paid -- but at the end of the process,youve acquired clean, clear, quiet title tothat property."Now, the way Georgia works, itswhat we call a premium bid state, wherethe penalty is set at 20%," said Sells. "Sosay we go to a tax sale in Georgia, andsay theres a lien being offered for salefor $5,000. We could spend as much as$50,000 on that tax lien, and the underly-ing property could be worth as much as$200,000. The homeowner then has to payus back 20% on top of the $50,000."That pencils out to a $10,000 penalty ontop of their $5,000 tax bill that they haveto come up with."The net payback to our investor wouldbe $60,000 on the redemption," said Sells."So youre getting a high return, either onthe redemption of the lienitself, or in acquiring titleto the property."Holding the tax lienis an enviable position;youre in line even beforethe mortgage company;in fact, according to Sells,more often than not hisclients find themselvesbeing redeemed bythe banks themselves,because taxes are escrowed as part ofmost mortgages. When owners fall behindon the mortgage, the taxes might not getcovered."The banks have to redeem us out justlike the homeowner would," said Sells."We have rights to foreclose on the mort-gage companies just as we do the home-owner; its a pretty safe spot to be in."Clearly its a strategy Platinum Invest-ment Properties West has seen suc-cess with; according to Sells, despitea lot of talk of declining inventoriesof delinquent properties, theyrebusier than ever."Our company has doubled insize every year for the last sixyears," said Sells. "This year weperformed higher than we everhave in past years. Theres stillplenty of inventory out there forus, because I think theres a lotthat still hasnt come to marketyet. There are more investmentopportunities than there is cashto put into them."Sells said his clients are look-ing for longer-term investmentswith high yields -- he estimates40% of their investors are self-directed IRA clients -- and they know thatthese are not particularly liquid invest-ments to get into."Now, with an agent like us, do we havemore opportunity to make it liquid thansomeone who just shows up and buysthese tax liens?" asked Sells. "Sure, ofcourse. But we still push on all our clientsthat this is a long-term hold; youll getredemption checksimmediately uponinvestment, but dontexpect that youre go-ing to flip all this stuffout in a years timeand do it again."Sells admits its achallenging market,and that theres a lotof road between theinitial investmentand the return. "And there certainly was alearning curve when I got started in 96,"he laughed. "But I think were the best inthe business that offers this type of oppor-tunity now. And the reason we continue tohave our success is because our clients aresuccessful."Contact PIP-West at: 877-335-2529 orvisit online @ www.PIPWest.comDonald Fullmanyear, according to Sells, and of coursethere are going to be attorney and courtfees, plus any additional back taxes willneed to be paid -- but at the end of theprocess, youve acquired clean, clear,quiet title to that property."Now, the way Georgia works, itswhat we call a premium bid state, wherethe penalty is set at 20%," said Sells. "Sosay we go to a tax sale in Georgia, andsay theres a lien being offered for salefor $5,000. We could spend as much as$50,000 on that tax lien, and the under-lying property could be worth as muchas $200,000. The homeowner then has topay us back 20% on top of the $50,000."That pencils out to a $10,000 penaltyon top of their $5,000 tax bill that theyhave to come up with."The net payback to our investorwould be $60,000 on the redemption,"said Sells. "So youregetting a high return,either on the redemp-tion of the lien itself, orin acquiring title to theproperty."Holding the tax lienis an enviable posi-tion; youre in line evenbefore the mortgagecompany; in fact, ac-cording to Sells, moreoften than not his cli-ents find themselvesbeing redeemed by thebanks themselves, be-cause taxes are escrowed as part of mostmortgages. When owners fall behind onthe mortgage, the taxes might not getcovered."The banks have to redeem us out justlike the homeowner would," said Sells."We have rights to foreclose on the mort-gage companies just as we do the home-owner; its a pretty safe spot to be in."Clearly its a strategy Platinum In-vestment Properties West hasseen success with; accordingto Sells, despite a lot of talk ofdeclining inventories of delin-quent properties, theyre busierthan ever."Our company has doubledin size every year for the lastsix years," said Sells. "Thisyear we performed higherthan we ever have in pastyears. Theres still plenty ofinventory out there for us,because I think theres alot that still hasnt come tomarket yet. There are moreinvestment opportunitiesthan there is cash to putinto them."Sells said his clientsare looking for longer-terminvestments with high yields -- he esti-mates 40% of their investors are self-di-rected IRA clients -- and they know thatthese are not particularly liquid invest-ments to get into."Now, with an agent like us, do wehave more opportunity to make it liquidthan someone who just shows up andbuys these tax liens?" asked Sells. "Sure,of course. But we still push on all ourclients that this is along-term hold; youllget redemption checksimmediately upon in-vestment, but dont ex-pect that youre goingto flip all this stuff outin a years time and doit again."Sells admits its achallenging market,and that theres a lotof road between theinitial investment andthe return."Andtherecertainlywasalearningcurvewhen I got started in 96," he laughed. "ButI think were the best in the business that of-fers this type of opportunity now. And thereason we continue to have our success isbecause our clients are successful."For more information, visit Sells andPlatinum Investment Properties West onthe web at http://www.pipwest.com“There are more investmentopportunities than there iscash to put into them.”Donald Fullmanyear, according to Sells, and of coursethere are going to be attorney and courtfees, plus any additional back taxes willneed to be paid -- but at the end of theprocess, youve acquired clean, clear,quiet title to that property."Now, the way Georgia works, itswhat we call a premium bid state, wherethe penalty is set at 20%," said Sells. "Sosay we go to a tax sale in Georgia, andsay theres a lien being offered for salefor $5,000. We could spend as much as$50,000 on that tax lien, and the under-lying property could be worth as muchas $200,000. The homeowner then has topay us back 20% on top of the $50,000."That pencils out to a $10,000 penaltyon top of their $5,000 tax bill that theyhave to come up with."The net payback to our investorwould be $60,000 on the redemption,"said Sells. "So youregetting a high return,either on the redemp-tion of the lien itself, orin acquiring title to theproperty."Holding the tax lienis an enviable posi-tion; youre in line evenbefore the mortgagecompany; in fact, ac-cording to Sells, moreoften than not his cli-ents find themselvesbeing redeemed by thebanks themselves, be-cause taxes are escrowed as part of mostmortgages. When owners fall behind onthe mortgage, the taxes might not getcovered."The banks have to redeem us out justlike the homeowner would," said Sells."We have rights to foreclose on the mort-gage companies just as we do the home-owner; its a pretty safe spot to be in."Clearly its a strategy Platinum In-vestment Properties West hasseen success with; accordingto Sells, despite a lot of talk ofdeclining inventories of delin-quent properties, theyre busierthan ever."Our company has doubledin size every year for the lastsix years," said Sells. "Thisyear we performed higherthan we ever have in pastyears. Theres still plenty ofinventory out there for us,because I think theres alot that still hasnt come tomarket yet. There are moreinvestment opportunitiesthan there is cash to putinto them."Sells said his clientsare looking for longer-terminvestments with high yields -- he esti-mates 40% of their investors are self-di-rected IRA clients -- and they know thatthese are not particularly liquid invest-ments to get into."Now, with an agent like us, do wehave more opportunity to make it liquidthan someone who just shows up andbuys these tax liens?" asked Sells. "Sure,of course. But we still push on all ourclients that this is along-term hold; youllget redemption checksimmediately upon in-vestment, but dont ex-pect that youre goingto flip all this stuff outin a years time and doit again."Sells admits its achallenging market,and that theres a lotof road between theinitial investment andthe return."Andtherecertainlywasalearningcurvewhen I got started in 96," he laughed. "ButI think were the best in the business that of-fers this type of opportunity now. And thereason we continue to have our success isbecause our clients are successful."For more information, visit Sells andPlatinum Investment Properties West onthe web at http://www.pipwest.com“There are more investmentopportunities than there iscash to put into them.”Realty411Guide.com PAGE 15 • 2013 reWEALTHmag.com
    • investortoolsby Tom WilsonInever cease to be amazed at the poor quality of manyreal estate photographs. Are you aware that the picturefor many properties for sale is literally taken from thedriver’s seat of a car!? For only an extra 30 min. of yourtime, or $100 paid to a professional photographer, one of themost expensive products you will ever market can go from an“also available” to “schedule a showing today!” As a seriousamateur photographer for 50 years, I’ve learned a few thingsthat make a big difference. Let’s take a look at some commonmistakes that are made and how to easily rectify them.EquipmentFor starters I recommend a DSLR (digital single reflex cam-era), such as an entry-level Canon Rebel ($300 used to $900new). A point and shoot can take very fine every day shots,but this is not an every day sale. A DSLRallows for better lenses, filter attachments,an external flash, and what you see iswhat you get because you view the scenethrough the same lens and filter that shootsthe picture. You can still set the camerato a point and shoot automatic mood anddon’t have to know anything complicated.A Wide Angle Zoom Lens. (can be pur-chased with the camera or alone for about$200). The lens should be at least 18mmminimum (or 28mm equivalent to the old35mm film cameras). Wider is even betterbut 18mm is acceptable. It should zoomto at least 50mm. Most starter DSLRs come withthis lens as the defacto standard, so they are readilyavailable.Ninety five percent of point and shoots simply donot have a sufficiently wide a lens to show all of aroom. Period. Wide angle is the only substitute forwhen it is impossible or not practical to get fartherback. I am flabbergasted at the number of ad photosthat only show the toilet and a corner of the tub, orthe nice family room with fireplace but don’t let you see thatit is attached to the kitchen for a wonderful “Great Room.” Awide angle lens solves this problem.Polarizer ($20-$50 at any camera store; the cheap one isjust fine). A polarizing filter attaches to the front of the lensand is used to cut glare and reflections. I rarely take a picturethat includes sky, water or through a window without a polar-izer. The front element rotates until you see that the picturehas the least glare, and best contrast and saturation of color. Itworks best when you are perpendicular to the angle of the sun orrays. The improvement in the picture is dramatic.External Flash ($50-$200). The built in flash is minimallyacceptable, however, an external flash (attaches to the metal pieceon top of the DSLR called a hot shoe) helps to fill in the shadowsat the side of the scene taken with a wide angle, can fill a deepergreat room with light more fully and evenly, and can be aimed upso that you don’t get harsh reflections from the bathroom mirrorand other reflective surfaces.CompositionViews. First of all, pretend you are the buyer. What would youwant to see in addition to the typical pictures? The neighbors’homes, the street, the back yard, the local park, the developmententrance, etc? Then include them in your portfolio of pictures!Consider framing someshots with a tree or door-way, use a step ladder foran elevated view, shoot theliving room from the stairs,and include artistic detailfeatures such as a nice car-riage light, flowers, gardenarch, or fireplace.No Dirty Laundry.Put away or shoot aroundthe trash cans, close thetoilet seat, cut the grass,request or pay the residentto straighten up before youarrive, angle your shot toexclude the power pole, thedead bush, etc.Lighting. Time your exte-rior pictures with the sunand weather. Don’t shootan East facing home in theafternoon; go in the morning on a nice day when the front viewis lit up. On the interior, go in the daytime, open the windows,turn on all of the lights, use your external flash and angle it to getmore diffusion. You want the scene to look warm and lived in.Staging. If the house is occupied get a stager to recommendwhat to change and remove. If the house it empty, get it staged atleast with accessories if not furniture. As a minimum, take alonga bag of small accessories to stage the kitchen and baths just forthe shots. I stage almost all of my homes for owner occupantStamp Out Drive By Shootings!The importance of having a skilled photographer on your teamEquipment ListDSLR $300-900Wide Angle Zoom Lens $200Polarizer $20-50External Flash $50-200Total Investment: ~$700-1,000Amortized over 50 houses: $20/houseRealty411Guide.com PAGE 16 • 2013 reWEALTHmag.com
    • sales. Some agents tell me not to do it be-cause most others in that market do not.Perfect. I always want my product to lookand be better that my competition.Using these techniques, you can takebetter marketing pictures than your com-petition that will make a big differencein your advertising to entice a prospectto take the next step. If you elect to farmit out to a professional you now knowwhat to look for and what questions toask. May your next pictures look like you could sell a thousandhomes.Tom Wilson is a thirty-seven year real estate veteran who hasexecuted over $100M and 1,800 units of real estate investments.After thirty years of managing some of the Silicon Valley’spioneering technology companies, Mr. Wilson put his businessand management experience toward full time investing. One ofhis companies,Wilson Invest-ment Properties,offers high-quality, high-cash flow, fully rehabbed, and leasedproperties to other investors. Mr. Wilson is also a weekly hostof the Real Estate 360 Radio program on KDOW 1220 amevery Wednesday at 3 pm. Catch the podcasts on iTunes or onhis website, www.tomwilsonproperties.comSome people believe Photoshop isthe solution to poor photography.This notion was tested with the poorexterior shot. However, it is impos-sible to digitally reframe a poorlycomposed photograph, and there isno way to recapture the saturatednatural looking sky and lawn with-out having used a polarized filter inthe first place. Conclusion: start witha good photograph and use digitaltools for very minor touch ups only.INTERIOR Poorinterior betterExterior Poor Exterior betterINVESTWITHCONFIDENCEI M M E D I A T E C A S H F L O WDiscover the lowest-risk, highest-quality residential investment properties in thecountry. Using sophisticated methodology, the best investment properties arecarefully selected by an experienced investor and rehabbed beautifully to secure thebest tenants. With competent property management, and instant cash flow, yourinvestment pays worry-free dividends from day one.PROFILE OF YOUR FUTURE PORTFOLIO• Highest Cash Flow• Lowest Risk Properties & Cities• Immediate Equity• Quality Newer Brick Homes and Stable Neighborhoods• Turnkey – Clear Title, Rehabbed, Leased, Managed• Home Warranty“Contact me for afree cash flow analysis.”Mention REI Voice Magazine and receive one-year of freeproperty management with your first purchase.TOM WILSON, President408-867-1867TomKWilson@earthlink.netTomWilsonProperties.comPrice: $110,000, fully renovated, built 2005Currently Rented for $1,195Typical PropertyPrice $139,000Rent $1,395Year Built 2001Mention Realty411 or reWEALTH and receive 1 yearpremium home warranty with your first purchase.INVESTWITHCONFIDENCEI M M E D I A T E C A S H F L O WDiscover the lowest-risk, highest-quality residential investment properties in thecountry. Using sophisticated methodology, the best investment properties arecarefully selected by an experienced investor and rehabbed beautifully to secure thebest tenants. With competent property management, and instant cash flow, yourinvestment pays worry-free dividends from day one.PROFILE OF YOUR FUTURE PORTFOLIO• Highest Cash Flow• Lowest Risk Properties & Cities• Immediate Equity• Quality Newer Brick Homes and Stable Neighborhoods• Turnkey – Clear Title, Rehabbed, Leased, Managed• Home Warranty“Contact me for afree cash flow analysis.”Mention REI Voice Magazine and receive one-year of freeproperty management with your first purchase.TOM WILSON, President408-867-1867TomKWilson@earthlink.netTomWilsonProperties.comPrice: $110,000, fully renovated, built 2005Currently Rented for $1,195
    • Making$100KPerYearwith Mobile Home CommunitiesMany real estate investors I meettell me they have one goal — howto make $100,000 per year in pas-sive income. The $100K will pro-vide them financial freedom, i.e.the ability to do what they wantwhen they want. As I explain inmy new book “UnconventionalWealth,” the lack of loyalty fromthe vast majority of corporationsto their employees, especiallythose over the age of 50, makesit imperative that you start on a path tofinancial freedom as soon as possible be-cause you are going to be forced out onyour own sooner or later. I’ve owned andexplored numerous businesses through theyears and I strongly believe cash flow realestate is the best path to achieving the goalof $100K in passive income.I have chosen the real estate niche ofinvesting in mobile home communities(MHC’s) because the cash flow is so muchgreater than other areas of real estate. AsI have discussed in previous articles, evenby Mike Conlonin this low interestrate environment thathas pushed cap ratesback down to historiclows for many realestate investments,I have bought sevendistressed MHC’s(1,000+ spaces) in thelast six months all at10+ cap rates. I amconfident I will havethem at 15 - 20 caps within 18 months byadding some homes to vacant sites andincreasing rents. I know of three primaryways to get to $100K in annual income in-vesting in mobile home parks:1) If you have $750,000 to invest and don’twant to do any work and take minimal risk,you can get a 12-14% annual distribution(plus a 3% to 5% additional annual returnthrough debt pay down and appreciation)investing with a larger operator like my-self who works with investors.2) If you have $375,000 to invest andhave access to $700,000 — $1,000,000in bank or seller financing, you can buy adistressed 100-space park that is 50-65%occupied, make the necessary repairs,add 10-20 repo homes to fill empty sites,raise rents to market levels, and manageit yourself. Owning one 100-space parkand operating it yourself is all you need tomake $100k/year!3) If you don’t have any funds yourself,you can start on what I call the “3-StepPlan.” Step One is to raise $100K frompeople you know and buy a distressed(50-65% occupancy) 25-space park for$250,000 or less with 20% down andseller financing. Try to get interest onlyfor the first 12 months. Use the remainingfunds after the down payment to spruceup the park (mostly cosmetic repairs) and... how do you evaluate the myriad opportunitiesavailable to you and get to the top of the class?... how do you evaluate the myriad opportunitiesavailable to you and get to the top of the class?Continued on pg. 36Realty411Guide.com PAGE 18 • 2013 reWEALTHmag.com
    • Savvy investors utilizemany creative ways intheir search for suit-able properties. One ofour preferred methodsat White Rock Capitalincludes direct mail campaigns tolandlords who own single family units,including condominiums and detachedsingle family homes.The mail campaign includes apersonalized letter directed to the non-occupant owners. Our strategy includessimple letters stating our interest inbuying homes in the neighborhood forcash. Sellers are often looking for aquick close and fast cash, or they aretired of being landlords, or they maybe moving into retirement out of state.Our game plan includes sending lettersabout every three or four months toour target areas. Many potential sellersbecome familiar with our letters andsave them for later reference.For example, in a recent transaction,the owner seeking an offer called usfrom a recent letter. This owneris now a potential seller, be-ginning the acquisitionphase. Acquisitionincludes a field re-view of the propertyand pulling comps,including othertransactions wehave com-pleted inthe area.Bytracking oursales and thesales of others, we have arealistic basis for estimat-ing property values. Basedupon neighborhood valuesWealthReal EstateVol. 2 • No. 1 • 2012RICHARD EDROSOLANWhiteRock Capital, Inc.Discover why this veteranCalifornia investor likes tobuy properties in Arizonaan offer is made to the seller, negotiationscompleted to a mutually agreed to price.A contract is executed placing the salein escrow and binding the seller to theagreed to terms.With the property under contract, thenext step is to market to our wholesaleand retail buyers’ list. Many of our cur-rent investors have placed “orders” for aparticular type of property. Matching theproperty to an investor’s need reducesthe time required to “flip” the propertyout of inventory. Managing the propertyis straight forward as the entire processfrom identifying the property, through theacquisition to a wholesale flip averagesthirty-three days. Many transactions arecompleted in about fourteen to twenty-one calendar days. Select properties arechosen for rehab at the time of acquisi-tion. A major rehab that includes a newkitchen, updated bathrooms, paint insideand out, tile floors and neighborhoodappropriate landscapingtypically takes less thanfour weeks. Rehabbedproperties are pricedfor a quick sale, usu-ally 5% to 15% be-low the value of otherhomes in the area.Exit strategies arechosen at acquisitionbased upon the propertyvalue, to “fill” an order, or thepotential for a larger safe return.In this case, a wholesale flip tomeet an investor’s order wasdetermined to be the bestcourse.In order to provide ourinvestors solid returnson their investment, ahigh velocity of moneythrough each deal is re-SnailMailSuccessLetters Lure Motivated Sellersquired. Based upon pipeline volume ofproperties and an approximate 60 to 90days per turn, the investor can expectthree to five turns per year on their capi-tal. Right now, the markets most ripefor this strategy are Phoenix, Las Vegasand several California markets.Because our strategy is so suc-cessful we, unlike other wholesalers,have more inventory than we, and ournetwork of investors, can handle. Also,unlike most “wholesalers”, we are truewholesalers who offer properties to ourinvestors at prices which are well belowretail, leaving some meat on the tableso that our investors take ownershipwith some equity already in place. Andwe’re doing this in rapidly appreciatingmarkets.To reach Richard Edrosolan, CEO andfounder of White Rock Capital, call:805-766-1130 or email: richard@whiterockrei.comby Richard EndrosolanRealty411Guide.com PAGE 19 • 2013 reWEALTHmag.com
    • ‘Smart real estate investorsare learning to use leveragewisely and efficiently to putmore money in their pockets.’Continued on pg. 58Real estate investors are being bombarded withadvice today from every direction and it issometimes hard to find two pieces of advice thatare the same. There are so many options and somany opportunities that becoming confused isa common feeling among investors. Well get ready, becausehere comes one more piece of advice that may run contraryto what many are advising investors to do today. I happen tohave learned my lesson when it comes to leverage and I have aspecial place for it in my portfolio. Smart real estate investorsare learning to use leverage wisely and efficiently to put moremoney in their pockets.Surprising Investors With Sound AdviceIn the 4th Quarter of 2012, I made a presentation to a groupof investors in Northern California and I surprised many inthe room when I made a statement that I did not believe youshould buy realestate and leverageit for cash flow. Given that I ama partner in twocompanies thatspecialize in help-ing investors findproperties that pro-vide a positive cashflow after lever-age, this statementcaught much of theaudience by surprise.  But I followed that sentence with a bit ofa clarification.  I told the group that there are many ways inves-tors can be fooled or even fool themselves today into thinkingthat they are making a positive cash flow on their property. Itold the group that often, the biggest mistakes investors make,is sacrificing long-term stability for short-term gains.The Bank Wins Every TimeWhen I purchased my first home, I was given one option bythe three different finance companies I visited… a 30-yearSurprising InvestorsWith Sound Adviceon Leverageby Chris Clothier, co-ownerof MemphisInvest.commortgage.  The 30-year mortgage has become the staple ofreal estate investing and even Warren Buffet’s recent statementabout the 30-year mortgage shook the real estate world. What many people fail to recall about Warren Buffet’s as-sessment of investing in real estate is that he used the phrase“…if he could…” which, is very different than stating “this iswhat I am doing.”  This is worthy of an article all by itself asdifferentinves-tors andinvestmentcompanieshave takenhis shortinterviewand turnedinto thegreatestmarketingpiece they have ever had. His five minute interview has beenused thousands of times already to convince investors thatthey need to mortgage to the hilt all because Warren Buffetmentioned it in his interview. But they all forget two impor-tant points.1. He is one of the wealthiest men on the earth and can af-ford as much leverage as he is comfortable taking on.2. He never says that he is buying single-family homes. HeRealty411Guide.com PAGE 20 • 2013 reWEALTHmag.com
    • http://meminv.es/HTPOA http://meminv.es/HTPOA http://meminv.es/http://meminv.es/HTPOA http://meminv.es/HTPOA http://meminv.es/
    • by Stephanie B. MojicaDave Seymour and PeterSouhleris of the Boston arealoved “flipping” commercialand residential properties longbefore they were offered theA&E television show “FlippingBoston,” which both entertainsand educates audiences aboutthe hard work and greatfinancial rewards of real estateinvesting.Seymour and Souhleris, owners ofCityLight Homes in Peabody, Mass. inthe North Shore area of Boston, haveflipped houses and taught others how toflip properties for more than 18 years.Unlike some real estate entrepreneurs,the duo places a special focus onrefurbishing the properties in which theychoose to invest.“From conventional real estate brokerage servicesthrough to our innovative, creative and effective out of thebox home buying and selling solutions, we’re dedicated toone thing — making the sale,” Souhleris said.In Souhleris’ and Seymour’s book “The Flipping Formula,”their innovative approach to monetizing residentialand commercial properties is spelled out in terms evennewcomers can grasp.“Every day especially in Boston people drive by whatcould become tens or even hundreds of thousands of dollarsin their pockets,” Seymour said.Ignorance of the basics of selecting, purchasing,refurbishing, and reselling a home or quality commercialproperty is all too common among even otherwise well-educated people, the pair noted.“One of the biggest myths is that you need money tomake money in real estate,” Seymour said. “But you reallyFLIPPING BOSTONContinued on pg. 60achatwithDave&PeterfromA&E’sTOPShowRealty411Guide.com PAGE 22 • 2013 reWEALTHmag.com
    • It’s about more than money.The American Association of Private Lendersis about the self-reliance and ruggedindividualism that built America. Our purposeis to advance the interests of the entire peerto peer community. We lend our experience,enterprise and energy to elevate the standardsof our industry and give you a voice in yourfuture. Build your future with us.Join AAPL today.Private Lending –9 1 3 - 8 8 8 - 1 2 5 0 l A A P L o n l i n e . c o m
    • Realty411Guide.com PAGE 24 • 2011 reWEALTHmag.com Scott Carsonhas a mes-sage foranyonewho’s on the fenceabout investingin bank notes: “Ifyou’re not in notes,you’re going towish you were 6to 12 months fromnow.”Buying and sell-ing those mortgag-es, either indi-vidually or in pools, is the bread andbutter of Carson’s Inverse Investments— a company Carson founded in themiddle of the first round of post-boombank failures.“When a lot of banks started goingunder, I saw an opportunity there,”said Carson. “I launched my own firmsix years ago, when the banks wereclosing like crazy.”The early days were a fever-pitched“one-man show,” according to Carson,calling 40-50 banks every day, search-ing the nooks and crannies of themortgage industry for sub-performing(or non-performing) loans the holderswould be willing to sell for less thanthe market value of the property.But it paid off; Inverse Investmentsis one of the best-positioned boutiquefirms in the secondary note market,with a reputation and record that’s hardto match.“Those days helped us build up ourdatabase from then going forward,”said Carson. “We had success buyingone-offs and small pools, doing whatothers were talking about doing but nottoo many were actually doing at thatpoint. And over time, webuilt a name for ourselves asthe people who were closingdeals.”That reputation has grownexponentially since InverseInvestments first dipped itstoes in the water; Carsonand his team have garneredmention in print giants likeInvestors Business Daily andthe Wall Street Journal, andCarson himself was askedto speak at the NationalAssociation of Realtors con-ference in 2010. After that, things reallytook off; Carson said it’s in no small partbecause the entire business is predicatedon finding an upside in a down market —one that’s appealing to every partyinvolved.“The banks are look-ing at their loans;”said Carson. “That’swhere they maketheir money. Soimagine they’vemade a half-million-dollar loan, andthe property’s onlyworth $200,000now. They’re onthe hook for that$300,000.”Obviously, thebanks have the optionto foreclose; but in markets like Florida,New York, or New Jersey, where fore-closure times are measured in years, notmonths, many are realizing they’d ratherclear out their books and get a guaranteedpayout instead — even if it’s smaller.“If they know they might not get paidfor years, they’re realizing they’d rathertake a fraction of what’s owed right now,and get that, versus waiting for yearsand then having to sell it as an REO aswell,” said Carson. “So they’d let thisproperty go for $100,000 to an investor.That’s a phenomenal deal.”So the bank wins, the investor gets agreat deal, and the mortgagee suddenlyhas a note holder who can work morecreatively than any bank ever could.“The investor can do either a loan modi-fication,” said Carson, “or get a deed-in-lieu from the homeowner and let thehomeowner walk.”All this, Carson points out, potentiallywithout a deficiency judgment, bank-ruptcy, foreclosure or even any late pay-ments on the homeowner’s credit. It’s anattractive solution to a lot of players.“You have HUD and FHA announc-ing they expect to sell more notesover the next year than REOsbecause there’s such a glutof inventory,” said Car-son. “And they’ve cre-ated an investor matchprogram, because theyknow investors havemuch more oppor-tunity for creativesolutions for bor-rowers than theycan offer.”Carson calls itthe “perfect storm”for investors in the notebusiness. “The banks that were saying‘no’ just a few years ago are now say-ing ‘yes’ today,” said Carson. “I hearit every day, ‘Can you give us a bid?’or ‘Can you give us an idea what youmight buy this for?’ They’ve definitelyContinued on pg. 49Realty411Guide.com PAGE 24 • 2013 reWEALTHmag.comby Robb MagleyHitting the High Noteswith Scott Carson
    • Take control of your propertieswith these 10 tips written byMatt Theriault. This veteranCalifornia investor is an authorand host of the most popularreal estate investing podcast,Epic Real Estate Investing, oniTunes. He also shows peoplehow to invest in real estate atEpicProAcademy.com, or histeam does it for them at:CashflowSavvy.com.1Seek multiple referrals from other successful real estateinvestors. Success leaves clues, and a referral froma trusted and prosperous source is more than a clue, it’sevidence.2Adopt the mindset of “Slow-To-Hire-Quick-To-Fire.”Regardless of how many positive answers you get froma property manager during the interview process,sometimes the only way to find a good one is to givethem a trial run. If you notice a pattern of actionsthat conflict with their promises during the inter-view, cut ‘em loose. This is your livelihood, youare not obligated to someone who doesn’t fit yourneeds.3Interview more than one. No matter howmuch you like the first property manageryou meet, keep interviewing. Not only domultiple interviews increase the likelihood offinding a great property manager, you will learna ton about the projected performance of yourproperties and the market.4Test their customer service. Intentionally endyour interviews with a few unanswered questions.Call back after hours and leave a message. Note how andwhen your call is returned. When they (if they) return yourcall, use the unanswered interview questions as a basis foryour conversation. Ideally, you want your call returned within24 hours in a professional and courteous way. Placing a callduring business hours can also give you an indication of thecompany’s professionalism and accessibility.5Hire investors. This tip applies to your entire team as wellas your property manager. Although it’s is not essentialthat your property manager be an investor, I have found thecommunication and understanding of each other is MUCHbetter when they are an investor too.6Read the Management Agreement. It seems obviousenough, but it is so important that I must make mention ofit. As you read the agreement, remember that EVERYTHINGis negotiable. Ask for more concessions than you need inorder to get what you really want. Having said that, do notover-negotiate and remove the property manager’s ability tosupport his business and earn a living. Resentment is the lastthing you want in this relationship.7Drive by. Ask for a list of properties, as many as possible,that the property manager currently manages. Unkemptproperties and loitering tell a lot about how much attentiontheir properties are receiving and what type of activities aregoing on in the neighborhood. Dirt, debris, and rough char-acters are red flags as they make finding quality tenants muchmore difficult.8Trust your gut. You know so much more than you thinkyou do. If something doesn’t feel right, investigate. You’llfind that your hunches are not only correct most of thetime, but that they’re often rather conservative. Aslucrative as rental real estate can be, it has its darkside as well. Frequently refer to tip #2.9Be direct in your communication and docu-ment everything. Set an example and maintain astandard of clear and honest communication withyour property managers. Leave nothing open tointerpretation or debate.10Divide up your portfolio. Once you’veacquired more than two or three proper-ties in a specific region, and you intend tocontinue purchasing there, it’s a good idea tolook for a second property manager for futureacquisitions. You want to eliminate any singlepoints of failure in your business, and by maintain-ing a balance of your portfolio between at least twoproperty managers you help cover your assets. Also, keepno secrets about working with a second or third propertymanager. When your property managers are aware they havecompetition, you will find that your expenses have a tendencyto drop and performance improves.Watching investors place limitations on their investing dueto a few bad long-distance experiences saddens me becauseit is unnecessary. So, from this point forward, know that thesecret to “cash flow” real estate investing is not shorteningthe distance you live from your investments. The secret liesin selecting great property management, and now you havesome “real world” tips to help you do it successfully.management10 Tips for SelectingGREAT Property Managers>> Straight From The School of Hard KnocksRealty411Guide.com PAGE 25 • 2013 reWEALTHmag.com
    • NORADAReal Estate InvestmentsMarco Santarelli, CEO ofMarco Santarelli, CEO of
    • Anyone who’s ever evenconsidered investing in rentalproperties knows one thing isnever guaranteed: having a paying ten-ant. One real estate entrepreneur askedhimself, WHY?It’s a question Norada Real EstateInvestment’s Marco Santarelli loves toask, and it’s served him well.“It’s the most important question forso many things,” said Santarelli. “Whyis this property a good investment?Why does this market have potential?”Or, in this case, why not offer inves-tors a rent guarantee? So he did.“As far as I know, we’re the onlymulti-market turnkey provider thatoffers a rent guarantee on everythingwe sell,” said Santarelli. “If a tenantfor whatever reason never moves in, orfor some reason has to move out, theinvestor is covered.”Santarelli said Norada has offered a90-day rent guarantee for some time.“We’ve never had to use it,” he laughs.“But still, we said ‘How can you take agood thing and make it better?’”The answer came from additionaltalks with insurance underwriters:Norada Real Estate is rolling out ajaw-dropping one-year rent guaranteethis year. Santarelli said he’s workingwith the insurers market-by-market,and currently about two-thirds of theirofferings are already under the newone-year policy. “Hopefully we’ll beoffering one-year rent guarantees onevery property we sell by the middleof the year,” he said. “No one else isdoing that.”Continued on next page >QuestioningConvention{ Transforming the Way We Invest in Real Estate }Santarelli has made something of aname for himself questioning conventionalthinking in the real estate market. For ex-ample, most agents tend to sell propertieswithin their local area, or focus on becom-ing “experts” in a single market.It’s yet another “here’s how thingsusually work” scenario Santarelli asked“why?” about. While Norada is basedin California, the company isn’t tied tothis region — quite the opposite, in fact.Santarelli says he is “market agnostic” andhas always viewed real estate in terms of,“live where you want, and invest whereit makes sense.” The result, he said, is anagile and adaptive company.“We’re not locked into a specific area,”said Santarelli. “We don’t care which citya property is in, as long as it makes sensefrom an investment perspective.” Accord-ing to Santarelli, companies that are fixedto a specific market might have a lot ofproduct, but it’s all in one basket. “If thatmarket ever turns, there’s nothing they canoffer.”Santarelli’s “high level” approach tofinding investment properties lets himfocus on the fundamentals, not the fads.“I start with the metro area,” he said.“I look at the local economy: unemploy-ment, job growth, diversity of employ-ment, population growth. Do we havea lot of foreclosures? Are there a lot ofdistressed properties? Is there a high levelof inventory? Are prices declining, level,or increasing?”If it looks like a city has growth andjobs, and that the housing market is stabi-lized or on the upswing, then before evenlooking at a specific property, Santarellisaid you’ve minimized a lot of the invest-ing risk.“But I like to look at the forest, not justthe trees,” he added. “Something can looklike a buyer’s market, but it could be thatthere are underlying problems. If peopledon’t have jobs, the demand disappears; ifthe demand disappears, prices come down,and you have increased vacancies.”Santarelli uses Detroit as an example ofscratching a “buyer’s market” to uncovertrouble.“A lot of investors look at just the prop-erty, they say ‘Wow, this is a great prop-erty! It’s in good condition, it’s got greatcash flow.’And I’ll say, ‘Oh, by the way,it’s in the middle of a war zone in Detroit.’You have to consider the market, and theneighborhood, not just the property.”When it comes to properties, Noradais quite specific in what they present toinvestors: no commercial property, noindustrial, no apartment buildings or largecomplexes. The only segment they offer is1- to 4-unit residential rental property thatis genuinely “turnkey.” And they reallymean turnkey.“Turnkey means, in its simplest form,there’s nothing you need to do but close,”said Santarellli. “You can just walk inand start collecting a rent check the nextmonth.”The properties Norada offers are all ei-ther new construction or newly rehabbed;they’re all leased, or are in the process ofbeing leased (in the case of a property inthe rehab process, where a tenant simplyhasn’t moved in yet). And, significantly,they’re all cash flow positive. SantarelliRealty411Guide.com PAGE 27 • 2013 reWEALTHmag.combyRobbMagley
    • thinks most agents are missing the boatwhen they don’t emphasize the impor-tance of positive cash flow as being partof qualifying a property as “turnkey.”“We don’t want to touch a propertyunless it produces a measurable rate ofreturn for the investor,” said Santarelli.“We surveyed our investors, and over52% of them placed cash flow as theirhighest priority in what they’re lookingfor in an investment property.”In that same poll, according to San-tarelli, appreciation ranked 5th downthe list. “Investors want to make surethey’re buying a property that’s payingfor itself.”It’s all part of what he calls the “why”of Norada Real Estate: To make wealthcreation as easy as possible. The goalwas to create a place where investorscould shop, invest, and start collectingcash flow, all under one roof — or, inNorada’s case, practically at one website.Bucking the trend of in-house privatedata, Santarelli’s company makes itspowerful analytics tools available freeonline, to anyone who’s interested.The Norada website presents its prop-erties by market — with exhaustive dataand detail about those markets. “We putit all on the website so investors can domuch of their due diligence right there,”said Santarelli. The website softwarealso does price forecasting based on anumber of economic models, updatedquarterly.“Then, there’s a green button thatsays ‘analyze’,” said Santarelli. “If youclick on that, it provides a very detailed,customizable cash flow analyzer. It’s aproprietary program I had developed justfor our website.”Santarelli acknowledged that detailedanalysis can seem overly complex, andinvestors’ eyes can glaze over when pre-sented too much of it. His goal is presentit all in a simple way, so investors canget the message of why a particular mar-ket is a good one — and move on withthe decision process.The exemplification of that is Santar-elli’s proprietary “DealGrader” algorithm.Every property on Norada’s website hasits own DealGrader score.“It’s a score from 0 to 100, measuringthe investment quality of a real estate in-vestment,” said Santarelli. “It’s a snapshotof profitability and investment risk — thehigher the score, the better the investmentquality. It’s unique, it’s our algorithm, andagain, no one else has it. It’s just one moretool in the bigger picture to help inves-tors.”Other tools Santarelli makes free andavailable include weekly newsletters,free membership to Norada’s Real EstateInvestment Group, and Norada’s Hous-ing Market Forecast, recently updated for2013. “That’s essentially an appreciationforecast for the industry,” said Santarelli.“It lays out the top 100 markets, with afocus on the top 15.”If that wasn’t enough, Norada offersa free report called “Building Wealth inReal Estate,” in it, he talks about a wealthaccumulation plan that focuses on real es-tate, with enough of the basics to be usefulto a novice — and enough detail to appealto an advanced investor. “It’s actually asystem to accumulate property over timeThe simple answer is that it is the most pow-erful way to accumulate wealth, and morepeople have become millionaires through realestate than any other means. And despite the obviousneed to save for retirement, a recent Wall Street Jour-nal article indicated that a startling 95% of Ameri-cans will face financial difficulties by retirement! Ofcourse, you have several options for building wealth,but most of these options pale in comparison to realestate. Consider options like savings accounts, CDs,bonds, and money market accounts. These are safeoptions, but you certainly won’t reach a goal of building significant wealth throughthese means.For the most part, these options barely keep pace with inflation. Think about it:How many millionaires do you know who became wealthy by investing in savingsaccounts? The stock market can bring you some interesting returns, but it can alsolead to some big losses. You have very little control over the companies you investin, and there are no significant tax advantages to owning stock. In addition to thewealth you’d create, you would also benefit from the growing annual cash flowbeing produced by your income properties. The income earned can help supplementyour existing income, provide additional capital towards the purchase of additionalincome property, and eventually give you the freedom to quit your job and retirewith passive income!The book details a very simple plan that will create long-term wealth and cashflow for you and your family. The plan is very scalable, which means you can domore or less in order to achieve your wealth and income goals at your own pace.Remember: “Don’t wait to invest in real estate, invest in real estate and wait.”Pre-order “Building Wealth with Real Estate” today on Amazon.com. Downloadthe first chapter FREE at www.NoradaRealEstate.comWhy Build Wealth Through Real Estate?Continued on pg. 30Realty411Guide.com PAGE 28 • 2013 reWEALTHmag.com—SPECIAL REPORT—
    • WWW.NORADAREALESTATE.COMCALL US AT (800) 611-3060Download a free copy of ourvaluable 15-page special report,“Building Wealth in Real Estate”and receive a free membership toour nationwide investor network!FREE REPORTNorada Real Estate Investments helps take the guessworkout of real estate investing. By researching top real estategrowth markets and structuring complete turnkey real estateinvestments, we help you succeed by minimizing risk andmaximizing profitability.Successful Real Estate Investing Beginswith the Right Investment Property!WEALTH CREATION MADE EASY
    • fluff some put behind it,” he said. “It is hard work, but itpays off.”Herriage and his team members can help a distressedowner get out of virtually any housing situation. HerriageHomes works with some of the most challenging casesin the industry, including unwanted rentals, properties inneed of major repairs, quick sales, short sales, divorcesales, pending foreclosures, bankruptcy liquidations.“It takes me about 15 to 20 minutes to walk throughyour house and make you a cash offer,” Herriage said.“My offer is on an as-is basis. This means you do nothave to make any repairs, or even clean out the housein some cases. I call it, ‘Take what you want, and leavewhat you don’t.’” In an average month, Herriage buysfive to seven houses. He wholesales more than half ofthose properties, “flips” others, and retains some in arental portfolio. The dramatic spike in people using theInternet for all types of matters has not changed Herri-age’s basic process of buying, fixing, and selling houses.“It is still a people business.  The best way to makemoney in this business is to be behind a steering wheel,”he said.“There are those that teach to sell product, and thosethat teach to buy and sell more houses.  I teach about realworld actionable information I obtain weekly by beingactive in what I teach about.  There are few that can claimthat.”To learn more about Herriage Homes, call 972-755-1880or visit www.timherriage.comDallas Wholesaler, Industry Leader, pg. 11The Complete Solution for Real Estate InvestorsTMListen to The Creating Wealth Show,Jasons Highly Acclaimed Investor Podcast:JasonHartman.comSo you love real estate...but you hate management?Passive Income 12.25%First Trust DeedsPodcastSee terms of service at:www.JasonHartman.com/termsWe have access to very unique "insider"private lending opportunities. You’ve neverseen hard money lending like this before. Ifyou have $100,000 or more to invest and youwant conservative, diversified, quick-turn,non-pooled investments that repay in aboutfour to six months contact us for details. Ourprivate lending program is simple and proven.The simplicity of our private lending programis unmatched. Visit www.JasonHartman.comor call 480-788-7823 today.CW 274 -Fiscal Hangover & GlobalChange with Keith Fitz-GeraldCW 273 -The Decline of the EuroZonewith Alasdair MacLeodCW 269 -SWOT Analysis of Income Property,Facebook IPO & Case Studythat can be adopted by anybody,” said Santarellli, “andtweaked whether you’re buying one property a year, two ayear, or one every two years. You can adjust the pace, butif you stick to the plan you can create a lot of wealth andcash flow.”It talks about all the advantages of real estate investing— appreciation, leverage, financing, tax advantages, and ofcourse the significance of inflation, which Santarelli thinksfew investors consider.“A lot of people don’t think about inflation, and howyour monthly mortgage payment is fixed in current dol-lars,” said Santarelli, “but with inflation you’re makingthose payments with cheaper and cheaper dollars everyyear.”All of which paints Norada as a forward-thinking, agileanalytics-based real estate investment company, unbur-dened by specific markets, that puts every free tool imagin-able in the hands of its investors.To learn more call 800-611-3060 or visit online at:www.NoradaRealEstate.comQuestioning Convention, Marco Santarelli, pg. 28Realty411Guide.com PAGE 30 • 2013 reWEALTHmag.com
    • Investor Education a TopPriority for Equity TrustInvestor Education a TopPriority for Equity TrustLearn about the history of Equity Trust on the next page >>Continued on pg. 59by Stephanie B. MojicaThe executives of Equity Trust, aself-directed IRA firm in Ohio,truly believe in investor educa-tion. For this reason they host aconference every year to increase aware-ness of basic investment fundamentals toinvestors.“Unfortunately, too many people thesedays are investing without understand-ing the basics,” said Jeff Desich, ChiefExecutive Officer.Desich and his staff members workcontinuously to ensure that each cli-ent understands not only his ultimateinvestment goals, but in which real estateproperties he has invested. Desich holdsmultiple licenses with the FinancialIndustry Regulatory Authority (FINRA)and is a registered financial principal. Whennot working closely with clients or givingworkshops across the country about theflexibility and profit potential of self-direct-ed IRAs, Desich is a guest professor at OhioState University’s prestigious Max FisherCollege of Business.“Assisting clients in achieving theirfinancial goals is the greatest value weprovide,” Desich said.Equity Trust is one of the leading firmsin the rapidly growing self-directed IRAmarket. Despite the economic downturn thatbegan in 2008, IRAs around the world areworth about $5.7 trillion. Equity Trust is thecustodian of about $12 billion of retirementRealty411Guide.com PAGE 31 • 2013 reWEALTHmag.comJeff Desich, CEO of Equity Trustphoto by David Gaylor
    • if it’s on the MLS, it’s way to late to secure a deal, but thatis simply not true! Granted, more competition will exist atthat point, but landing a diamond in the rough is still possiblefor savvy, all-cash buyers. Folks, I just found, rehabbed andclosed three diamonds in the past 18 months alone.Plus, every time I look on the MLS, I find a deal. I knowI’m not alone on this one, in fact, a broker affiliate of oursin Alabama just sent us a “Smoking Deal” in Birmingham.It was an REO listed on their local MLS. Having been alicensed real estate agent for the past 10 years, it gives me asense of pride to know that our industry is on the forefrontof technology. So next time you’re searching for that next“Smoking Deal”, be sure to log on to your local MLS insteadof driving for dollars. You’ll save gas money by simply click-ing for deals online. — by Linda Pliagas, pliagas@msn.comTHE MLS 411 - Access it!Did you know that most MLS (Multiple Listing Service)Boards across the country have a free guest search, whichcan be tapped into by anyone? All you have to do is a basicGoogle search to find the link to the MLS in the city youwant. For example, type in: “Kansas City MLS” or “LosAngeles MLS”. It’s that easy. Google will search the weband display either the MLS website itself or it may list anumber of websites from REALTORS® and/or Brokers whocan provide searches through their websites. If you do usean agent’s website to gain MLS access, you may also wantto tell them you’re looking for a discounted property andwould like to see more deals. Most savvy agents have apulse on the market and they may know about some “pocketlistings”, which may be worth knowing about.Clicking for Dollars, pg. 7 Flipping Boston with Dave & Peter, pg. 22“One of the biggest myths is that you need money to make moneyin real estate,” Seymour said. “But you really don’t.” really don’t.”He and Souhleris occasionally hear people cite a “downeconomy” as an excuse to not move from dreaming of investmentinto becoming an actual investor.“Whether it’s the mundane or the insane, we’re always lookingfor new ways to approach the way we do business,” Seymour said.“Some people call that ‘seeing around the corner.’ We prefer,‘Knowing what’s coming.’ It’s been that dedication to creativitythat’s led to our business being the focus of ‘Flipping Boston.’”When the show premiered in early 2012, it set a record asA&E’s highest-rated Lifestyle series launch in history. With twosuccessful seasons in their portfolios, Seymour and Souhleris arelooking forward to doing even more episodes.“It really is not that edited,” Souhleris said. “What you see ispretty much how we really act.”Seymour, who professionally markets himself as a “big picturethinker,” has a tenacity adopted from his days as a paramedic andfirefighter.“A life-changing commitment to real estate investing is nota game, nor is it for the faint of heart. In this industry, successmanifests itself in those who think big, believe big, and have thecourage to act on both,” he said.But despite his deep commitment to the real estate market, hismain priority is his family.Ready to learn how to flip like the pros from “Flipping Boston?”Then visit www.citylighthomes.com for your free copy of “TheFlipping Formula.” Alternatively, you can call 800-927-1883 tofind out about consulting with Dave Seymour, Peter Souhleris, orone of their trained professional associates.Realty411Guide.com PAGE 62 • 2013 reWEALTHmag.com
    • Wholesaling for Quick Cash3 No Money - No Credit Needed3 No License Required3 Quickest Way to Get PaidFinding Motivated Buyers3 Learn to Build a HUGE List3 Cost Effective Marketing Tactics3 Flip Ugly Houses to Cash BuyersYour Real Estate Business3 Building Your Power Team3 Daily Business OperationsFinding the Deals3 Know Your Target Zone3 Leverage for BIG Discounts3 Find Deals Others Can’t(951) 280-19003Realty-BasedTrainingatit’sBEST!Here’s what to expect:Wholesale Training CampWholesale Training CampIn this money-making 3 day Real Estate Whole-sale Training Camp, Real Estate Master SenseiGilliland teaches you how to earn thousands ofdollars without investing a single penny of your own money. He’llshow you step-by-step to set up your business so you can start flip-ping properties and earning the money you desire. Once youknow Sensei’s top secrets and put them into action, you’llbe flipping real estate deals without cash, credit, or risk!Keeping Your Funnel Full3 Guerilla Marketing Strategies3 Track Absentee Owners3 Getting Sellers to CallDeal Analysis & Negotiations3 Collecting Seller Intel3 Research Quickly & AccuratelyPre-Foreclosure Strategies3 Profiting with Distressed Owners3 Get the Deal Before the Agent3 Understand State Flipping LawsFlipping without the Risks3 Easy to Understand Contracts3 Assignments and Double Closings3 No Rehabbing RequiredLearn the Art of Creating Cash and Much, Much More!Attend thistrAining to stArtYour reAl estAteCAsh MAChineCall Us TODAYto Secure Your Seat!Sensei GillilandReal Estate MasterTel 951.280.1900 Fax 951.280.1904 Web www.BlackBeltInvestors.comwww.BlackBeltInvestors.comwww.BlackBeltInvestors.comBlackBeltInvestors