Real Estate Wealth Magazine


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Reaching Accredited Investors and High Net Worth individuals. The magazine is published by investors with numerous years experience in local as well as long-distance investing. To reach us, call: 310-499-9545 or visit for more issues and to join our network.

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Real Estate Wealth Magazine

  1. 1. WealthReal Estate Vol. 1 • No. 4 • 2011 INSIDE: Get Out of the Sam Sadat Rat Race with The Master of Passive Income Motivation Speaks Discover Why Now is the Time to Buy! Learn from the RE DivasWelcome to Sam’s RE Clubat the Beverly Hills Country Club
  2. 2. Realty411 Wealth Real Estate FOUNDER ADVERTISING Linda Pliagas Kelly Global Marketing 310.439.1145 EDITORIAL STAFF EVENTS & EXPOS Lori Peebles Lawrence Ruano Anita Cooper CALIFORNIA DISTRIBUTION Andre Sanchez Professional Distribution Solutions Brianna Bertrand 1.877.418.6500 COPY EDITOR NATIONAL DISTRIBUTION Anita Cooper KJ Banks: 805.377.6328 Andre Sanchez PUBLISHED BY PHOTOGRAPHERS Manifest Media Partners Sam Green John DeCindis SUBSCRIPTIONS/INFO: COLUMNISTS 310.499.9545 Sam Sadat Dave Lindahl Charles Salisbury PRODUCTION Emma Krull Join Our VIP Social Network: Augusto Meneses To Educate, Motivate & Inspire Real Estate InvestorsRealty411/Real Estate Wealth is published in Santa Barbara County by Manifest Media Partners(550 Pine St., Solvang, CA 93463). ©Copyright 2007-2011. All Rights Reserved. Reproductionwithout permission is strictly prohibited. The opinions expressed by writers and columnists are notendorsed by the publishers and/or editorial staff. Before investing in real estate, seek the advisementof a trusted financial adviser, attorney or tax consultant. Real estate investing is risky & may result inloss of capital. Please invest responsibly. PRINTED IN THE USA. GOD BLESS AMERICA Connect to our virtual network ~ online 24/7/ PAGE 3 • 2011
  3. 3. Chris & Ruth Property Flipping ExpertsShare their Secrets on how to rehab and flip properties for Big Profits in this great Foreclosure Market in the Southern California Area. BEFORE AFTER Upcoming Property Tour Event Check our website for Calendar of Events in Southern California Only. Free! Receive Chris & Ruth’s “Property Analyzer” and guide to “How To Start Your Flipping Business”562-304-7787 or log on to:
  4. 4. contents8 and 22 Top secrets from master investor and educatorDave Lindahl.10 An interview with Sam Sadat, thedirector of Sam’s Real Estate Club.15 Invest with the best, invest 19 Entrepreneur and investor Kent Clothier takes the road less traveled and succeeds. 20 Black Belt Investors teaches us how to master the art of the flip. 24 True Wholesale Houses delivers steady returns for investors in a volatile industry. 27 Market spotlight: Kevin and Alex are at the forefront of multiple top South Eastern markets. 28 Americans Flip to Australians in AZ. 29 Tyrone Jackson wants to diversify your real estate portfolio with stocks. 30 Christian and Ruth teach SouthernCalifornians their property rehab secrets. ���������������������� ����������������������33 Richard Barrett asks: What is ������������������ ���� ������� ������� ������ ��� ����� ��������your real estate time? ������������������������������ ������������� ����������� ���� �� ������������������������������������������������ ���������� ����� ����� ������� ������������������������������ ����� ��� ����� �������� ����� ������ ���� ���� ���34 In memory: Fred Tingley’s ������� ������ ������ ������� ���������������������������������� ���������������������������������������������last real estate column for fans. ������� �������� ����� ������� �������������������������������� ������ ������ �������� ����� ����������������������������� ����������������������������������������������������� �������������������������������������������������35 Market spotlight: Phoenix, Ariz. ��������������������������������� ��������������������������������� ������������������������������� ��� ����� ��� ���� ���� ��� ���������� ����� ���� �������� ���� ���� �������� ��� ���������������������������������������������������36 Top 20 excuses for failure. ���� ������� ������������ ������������������������������ N ATIONAL R E EAL STATE ���������������������������������������������������� ���������������� ��������������38 Gary and George’s monopoly����������������� secret. ������������� I NSURANCE G ROUP , LLC �������������������������������������������������� ������������������� ���������������� ����������������������������������������������������39 to 53 Meet the hip real �������� ��� ���� ��� �� ���� ��� ���� ���������������������������������������������������� ����������� ����� ����� ���� ������estate divas of today: ������������������� �������������������� ������������������Ladies in the industry give ������ ���������� ������� ���������� ��� ���� ��� �� ����������their advice and tips. ��������� �������� ���������������� ���������������������� ����� �������� ��� ��������������54 Maximize your legal protection. ������������������ ��������������� �������� ��� ���� �������������������� ���������������� ���������������������57 Inside the cashflow board games. ����� ��������� ������ ������ ���� ���� ��� ���� ������� ������������������58 Tom Wilson gives his insight �������������������������������� ����������� on the market recovery. ��������������������������������� ������������������������������61 Guild Mortgage clarifies misconceptions about financing. ���� ����� ����� ��� ��������������������������������� ������������������������������� ��� �������� ���������� ����� ������� ��� ������������ ���������������������������� ��������������������� ����� ������� � Questions? Need a Referral? ������������������������������ ������������������������������� ����� ������ � �������������������� ������������������������������ 805.693.1497 or 310.499.9545 �������������������������������� ����� ��������� �������� �� ���� ���������������������������������� �������������������������������� ������������� ������ ���� ���� ������� ��� ����� ���� ��� ����������� ��������� ���������������������������������� ������������������������������������� Photo credits top right and clockwise: Sam Sadat, Kent Clothier, ��������������������� ���� ������� ����� ��� ������ ������������������������������ Kathy Fettke, Terica Kindred, Tyrone Jackson and Jay Hinrichs �������������������� ������ ������ ���� ����� ���� ��������� ������ ���� ����� PAGE 5 • 2011 �������������������������������� �������������������������������� ������������������ ����������������������������� �������������������������� ������ ���� ��� ���� ������� ��� ������ ���� ���� ������� ����������������������������� �������������������
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  7. 7. If Single Family Homes Are Such Great Investments, Why Do Most ‘Investors’ Still Go To Work Every Morning?W by Dave Lindahl ouldn’t you love to discover how to make $9,700 plus in passive income month after off, or can’t work for awhile,month… and how to reap huge positive you have no income. That’s notcash flows from real estate — with less financial freedom.risk, less money down, and no tenantheadaches? 4) The government takes I’ll tell you what, if you want to collect 33%-50% of your profits!an automatic monthly income of $9,700 When you hold houses for lessor more — without having to get up ev- than a year, your profits areery morning and “go to work” — then taxed at the painfully high rateyou need to know that most real estate of “ordinary income”. Com-experts are giving you the wrong ad- pared to my approach, you havevice! far less cash to roll into the next See, they rave about buying and selling property. The result: It couldsingle family homes, but they don’t tell take you twice as long to attainWhen you’re flipping houses, you’ve got tokeep working to earn your next “paycheck”.you about the risks and downsides. They 1) You’re at the mercy of contrac- financial independence.don’t admit that single family homes are tors. Most bargain homes are in disre- If you’ve read the best-selling bookpoor investments for passive income... pair. You’ve got to renovate them, but Rich Dad Poor Dad, you understand thatfor attaining real financial freedom. most contractors are unreliable. You’ve income-producing assets are the key to Now don’t get me wrong, if you can got to oversee everything they do, or risk financial freedom. You also know thatwait a few years for your upside, single paying for their mistakes. And the good Robert Kiyosaki (the book’s author) builtfamily homes have a history of appreci- ones are always booked up for months in his personal fortune through buying andating nicely. And if you’re happy making advance. holding real profits, flipping houses can be Unfortunately, Kiyosaki doesn’t goan exciting business. Over the past eight 2) You lose money for four to six into detail about how he selected, man-years, I myself have bought, rehabbed, months. That’s how long it takes to fix aged, or sold his properties. That’s whyand/or sold 422 houses. If you can pull up a house and resell it. When your con- I’m writing, “The Real Secret…Apart-it off (despite the risks), you can make tractors drag their feet, you’re left help- ment Buildings And How To Managea big profit in four to six months. It can less and stressed out. Every day your 642 Units With One Phone Call Eachbe a good business model. But it’s not house sits vacant, your bank account is Month!”financial freedom. further depleted by loan payments, taxes, Today, I own 33 multi-family apart- When you’re flipping houses, you’ve insurance, and utilities. ment complexes, with 7,322 units in to keep working to earn your next Yet, I never deal with a single tenant,“paycheck”. You’ve got to keep market- 3) Your job never ends. When you their complaints, any repairs, or vacan-ing, buying, renovating, and selling. finally sell, you’ve got to start all over cies. again, marketing, negotiating, and over- My carefully chosen property manag-This is the life of a “house flipper”; seeing your contractors. If you take time ers handle 100% of the tenant PAGE 8 • 2011
  8. 8. ment. I have one phone call per month from bonds, CDs, or mutual funds, infla- Fortunately for you, I have createdwith each of them; that’s it. tion devalues your principal. But when a very successful but limited mentor- Last year, I sold four of my proper- your buildings appreciate and your ten- ship program. Its aim is to take you byties. After paying off my loan balances, ants pay off your loans, you create huge the hand and share with you the provenI received four separate checks for over equities, and eventually own them free tools you need to be successful in invest-$200,000 apiece. And I used a legal and clear. ing. But with everything in life there istax loophole to pay zero taxes on three of course a catch. And the catch is thatof them. I can show you how to do the 4) Hands off management. Because I can’t work with everyone. There isn’tsame. Why haven’t you heard more apartment houses offer so much income, enough time in the day. But my strate-about apartmentbuildings? Because apart-ment inves-tors don’t want thegeneral public toknow about theirsuccesses. Apart-ment inves-tors are alreadywealthy. Just lookat the late RedAuerbach of theBoston Celtics. Hemade his real mon-ey buying apart-ment buildings,then branching offinto hotels. Like-wise, ArnoldSchwarzeneggermade his first for-tune buying apart-ment houses inColorado.Here Are The Big-gest Advantages That I See In Apart- property managers charge an average of gists and I can work with a select groupment Investing: just 4% of the gross rents (versus 10% of people. for single family homes). There is no better time than right now 1) Apartment buildings are “cash to find out if you qualify for the mentor-cows”, especially when compared to sin- 5) Cut your taxes in half. Instead of ing family homes. For example there is a paying 33% - 50% in taxes, you’ll pay To take my brief questionnaire to de-six unit building I own in Brockton, MA, the low capital gains rate (now 15%). termine if apartment investing is right forthat nets me $1,877 per month (after all you, and to see if you qualify to becomeexpenses)! Think about it, more units in Seventeen years ago, I was fortunate one of the lucky few people I will men-each property brings you more income. to have a mentor that showed me the tor, visit, do truth about apartment investing and he it now. 2) You start profiting instantly. Rather was there to take my hand and get me My mentor made me promise thatthan being drained for 4 to 6 months, started! when I became successful, I would passcarrying the costs of a vacant house, you Now whether you have ever invest- on my knowledge. I hope you are one ofenjoy positive cash flows from day one. ed in real estate before or if this is just the few people I take under my wing toAnd you can live off that income, so you something that you have always thought share these powerful techniques.don’t have to go to a job everyday! about doing, I would love to take your hand and share with you the exact strate- See How One Mom Makes $7,487/Month 3) Build huge equity and live off the gies and processes that have made me a Part-Time at:cash flow. If you live off the income multi-millionaire. PAGE 9 • 2011
  9. 9. Mr. Motivator The founder of Sam’s Real Estate Club in Beverly Hills discusses his start in real estate and explains why his message of abundance is so urgently needed into today’s volatile market. article by Linda Pliagas photography by John DeCindis the nation and eventually made his home base in Santa Monica, Calif. Sam’s passion, other than putting togeth- er real estate transactions, is the study of metaphysics and spirituality. It is this reap- and-ye-shall-sow philosophy, which also permeates at his club, that has attracted many loyal monthly followers to converge at the Beverly Hills Country Club. “I try to shift people’s mindset from scar- city and lack to that of abundance,” reveals the daily meditator. “Most people think that motivation comes from the outside, but that is an illusion. The fact is, motivation comes from within.” Sadat began his quest for real estate knowledge shortly upon graduating fromT The University of Texas at Austin, with a degree in mechanical engineering. He re- calls: “At the time, I was working for cor- he Westside of Los which encourages individuals to take action porate America. I took a hard look at my Angeles is hustling for a life of fulfillment. bosses, who had already been working with investor activity. With over 2,000 members throughout there for 20 to 30 years, and I knew there Within a five-mile ra- Southern California, Sadat attracts visitors had to be a better way.” dius there are no less from up to two hours away. His club also In his quest for real estate, he first became than seven real estate hosts some of the nation’s most sought-after attracted to real estate finance because he clubs, serving thou- speakers, such as Than Merrill, Scott Mey- realized that “knowing the numbers,” was sands of investors. But ers, Richard Roop and Reggie Brooks. vital. Part of Sadat’s real estate educationone organization goes way beyond simply Sam’s Real Estate Club founder is Sam led him to start attending real estate clubs.being a club that talks about real estate. It Sadat, a spirited U.S. immigrant of Persian He fondly recalls attending investmentis more of a self-help investor organization, descent who has lived in numerous parts of gatherings in different parts of the country, PAGE 10 • 2011
  10. 10. including Colorado. By the time Sadat be- “Fear.” He adds: “That is really the funda- creative transaction, later he found out thegan to live in Los Angeles, he was already mental reason why people don’t act, it’s be- seller was attempting to sell the same prop-experiencing phenomenal success in real cause of fear. The fear of the unknown and erties again!estate finance, including traditional mort- fear of failure are really two of the most “It was a learning experience for me andgage and hard money lending. He was also incredible fears that we have.” for others of what not to do, not havingbuying, rehabbing and flipping properties While Sadat is thankful for the success gone though a traditional escrow causedas a sole investor and also with partners. he has found in real estate, it hasn’t al- me a lot of aggravation and money because It is then that he says he felt a longing ways been smooth sailing. “I lost millions I ended up having to take legal action.”to create his own space. “I wanted to have because of the Northridge earthquake in During emotionally and finan-a forum for me. I wanted to make sure I 1994,” he confides. (Most Californians do cially devastating times, Sadat turns in-could inspire people.” ward for strength and reliesHe carved out a space in on words of wisdom fromVan Nuys and began tohost monthly meetings in The Scoop on Sam’s Real Estate Club the individuals he admires most: Carl Yung, WayneMay 2003. The number Join Sam Sadat the 4th Wednesday of every Dyer, Ralph Waldo Em-of guests soon swelled month at the beautiful Beverly Hills Country erson and Rumi, a Persianinto hundreds of people. poet. Sadat prides himself in Club. Meetings start at 7:30 p.m. and usually Successful attributes inhaving a club where edu- last about 2 1/2 hours. Reserve your seat online life, like in real estate, needcation, not promotion, is for $10 per person, which includes valet parking. to be developed. “I’ve heardthe focus. my shares of ‘no’. I’ve had His goal is to transform Please register for the club meeting online at: to work on myself. It’s a lifeeach one of his members mission.”from being a potential in- For Sadat that callingvestor into an active one. is not merely a personal, “My main focus has become teaching not carry earthquake coverage due to its internal goal, as much as it is an evolvingand mentoring my students because often lack of affordability.) Another tough lesson and fully dimensional manifestation. It isyou have to hold their hand and literally he learned was that no matter what type of an avocation that he says he hopes will el-push them to act upon their knowledge.” transaction a real estate investor does, they evate all those he reaches. When asked why so many people sit on need to hire an independent escrow com-the sidelines when it comes to taking ad- pany to make sure the contract is followed Be sure to visit Sam’s Real Estate Club on-vantage of the greatest buyer’s market of accordingly. Sadat learned the importance line for a schedule of speakers:all-time, he replies with one simple word: of this when he purchased three homes in a “Most people think that motivation comes from the outside, but that is an illusion. The fact is, motivation comes from within.” PAGE 11 • 2011
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  13. 13. Invest with the Best The Market Leader is Photograph from left to right: Chris Clothier, Brett Clothier, Kent Clothier Jr. and Kent Clothier Sr. “If you commit to getting better every day, your customers will demand you get bigger.”T — S. Truett Cathy, founder of Chick-Fil-A. his sage advice, as well you plan to invest out of state, you need an out of state investor. as nuggets of gold from to find the right company to partner with Chris continues, “You are looking for other customer focused gu- — someone that has experience, that has someone with all the business acumen to rus, has been adopted into knowledge not only of the industry but of put together all the steps that make sense.”’s own the market, and someone that is a true turn- The Clothier family established Mem- company goals and aspira- key provider.” and her sister companies,tions; namely to be the absolute best turn- While there are many companies who Memphis Invest Renovation Services andkey investment company possible. call themselves “turn-key” (so much so that Premier Property Management on the firm Many investors try their hand at out-of- he feels it has become an overused phrase), belief that out of state investors need ac-state investing only to become frustrated Chris believes that investors searching for cess to proven, qualified professionals whowith the less than stellar returns they expe- a turn-key company to partner with should understand their needs. MemphisInvest.rience when dealing with companies who look for organizations who “own and op- com partners with investors by handling allclaim to be “turn-key” investment compa- erate every step of the equation.” This of the details — from purchasing invest-nies that simply provide contacts, leaving way, investors are not getting a company ment properties to ongoing maintenancecustomer service out of the equation. that says: “buy from me and I will give and property management, helping to al- Chris Clothier of you contacts for renovation, or contacts leviate the stress that often accompaniesoffers his advice for individuals who are for property management or contacts for buying properties far from home.interested in finding a true turn-key com- insurance.” Chris says this is a recipe for makes investingpany for their out of state investments. “If disaster and it is a lot of hands-on work for Continued on pg. PAGE 15 • 2011
  14. 14. simple for out-of-state investors. “Youmake one phone call,” states Chris, “andyou’ve got every department, any answer— access to every single person in thiscompany, so [the process is] very stream-lined.” Chris believes that successful investorspossess some common traits — “they haveto be inquisitive, they have to have curios-ity. They shouldn’t ever take everything atface value. They should be inquisitive as towho they’re dealing with, and what mar-kets that they’re looking to buy in. Theyshould be willing and able to do somehomework, look around, and ask the rightquestions. They should also have a long-term mentality. This is not get rich quickby any means. The other thing that inves-tors need to be successful in long-term buyand hold is they need access to capital. No Top: An out of state real estate investor celebrates purchasing two investment down is not an avenue to success.You have to have access to some capitaland be able to build a long-term portfoliowhether you use straight cash or some kindof leverage.”, possessing a strongcustomer service focus and attitude, makessure that an investor knows, from the start,if this opportunity is right for them. “Idon’t want to waste an investor’s time orraise their hopes,” says Chris. “We are veryup front and very frank when we have ourdiscussions. We need to know the financialstrength and ability of an investor so wecan help make sure they’re successful.” Investors who partner with their compa-ny will realize that “they have found a greatopportunity in Memphis, they’ve identifiedone of the premier turn-key investment Top photo: Customer Service Team at Carol Henderson, Cyndycompanies in Memphis, and they’ve com- McCrary, Ashley Claunch; Bottom photo: Brett Clothier gets ready to speak to a room full of real estate investors at a buyer tour in Memphis, Tenn.municated real clearly exactly what theywant — from there they just let us do it,and then they buy the opportunities that webring to them,” says Chris. He continues: “This is about buying cashflow investment property, if an investor tellsus that they need to earn a certain amountof cash flow to pay their bills each month,we are very adamant that they need to lookat other financial opportunities, other finan-cial advice before buying real estate.” For the Clothiers, “There is no saleworth making that’s gonna hurt somebody,just for us to make a little bit of money,”states Chris. Why would an investor choose to partner Continued on next page Continued on pg. PAGE 17 • 2011
  15. 15. with “As a company, we hold in very highregard the customer service that we pro-vide,” says Chris, “we have three dedicatedemployees that provide customer service,including calling every one of our clientsevery month on behalf of our propertymanagement company and on behalf of theClothiers, as the owners — and they askthe simple question: “What can we do foryou?” Chris shares the reason for’s amazing growth. “About a yearago we started to take time every singleweek to stop everything, and come togeth-er and study how to get better at customerservice, and at business as a whole.” The investment incustomer service haspaid off — in spades. Top photo: Premier Property Management of Memphis is the In the first half of key to their investors’ success! Left photo: Mark Anderson, a2011, MemphisInvest. portfolio advisor at meets with a couplecom became the larg- from California who purchased three rental properties.est private home sellerin west Tennessee. Theonly companies whosell more homes than MemphisInvest.comMemphis Invest areFannie Mae and the De- Rental Opportunitypartment of Housing and Urban Development. “To date,” said Chris, “we closed 163 transactions so far in 2011.Last year at this time, we had closed 79 transactions.” The integrity and distinction that brings tothe turn-key investment industry is seen clearly by their doesn’t recommend properties that theywouldn’t buy themselves. In fact, their investors buy and own inthe same neighborhoods that the Clothier family buys and ownsin. Traveling to many areas, such as New York, Chicago, Boston,and all major California cities, takes time tovisit their clients face to face. Why? “We’re willing to do whateverit takes to provide the best service possible and to show our clientsthat we’re there for them,” Chris replies. Here is one sample property, this home is already — Interview by Anita Cooper sold, but other great rentals are still available. Be sure to add one to your portfolio. 3 Bed/2 Bath with 2 car garage invites readers to join Built in 2000 - Sq. Footage - 1,601 them at their events in the following cities: Purchased for $69,000 OR $37.41 PER SQUARE FOOT •September 8th-11th - New Orleans $10,000 in full renovation work completed •October 1st - Boston Tax assessed value in 2010 of $104,000 •October 18th - Phoenix Gross yearly rents between: •October 29th - NY $9,900 and $10,740 •November 12th - Vancouver Assuming 30% of rents for yearly expenses and •December 1st - San Jose the property has a cash-on-cash ROI •December 3rd - San Diego of approximately PAGE 18 • 2011
  16. 16. Kent Clothier Chooses to Follow the Road Less Traveled by Anita Cooper well as always doing what’sO necessary, even the “dirty ne conversation with Kent work” that nobody else Clothier will open your eyes to wants to do, has been the a fatal flaw found in many real key to Kent’s success. estate programs: Most of the “If you’re willing to dogurus who pitch the products don’t actu- what others are not, then youally utilize them. Well, here is some inside will find that success willscoop: Kent Clothier (and his entire fam- usually follow,” said Kent.ily and team) actually use the systems Kent Kent believes that his suc-promotes. As owner of 1-800-SELLNow, cess, and that of his family, “If you’re willing to do what others are not, then you will find that success will usually follow...”the systems Find Cash Buyers Now and the Clothiers, “...lies in theFind Private Lenders Now, and as co-owner fact that we’re willing to doof, Kent Clothier uses something that others aren’t.the same knowledge that he shares with his We are always willing toclients, many have already seen great suc- send someone down to thecess in their own right. county clerk’s office to sift Kent Clothier “The industry is filled with people through property records to find cash buy-who want to tell you how to do it,” notes ers, people that are in our back yard, that we and access to fantastic products, investorsKent, “but they’re not doing it themselves. get to know, and by doing that we’ve built a learn how to “run their business like a busi-There’s a lot of people who want you to buy very successful business, not a hobby.” ness.”this program, or buy that program, [but] When Kent and his family shared the “In our real estate education classes, wethe actuality is, very few of them are doing methods they utilized in growing their only spend 20 percent of our time teachingdeals. Not only do we educate people, but business with others in the real estate in- people on real estate, and we spend prob-we’re also buying and selling three to four vestment industry, they were surprised at ably 80 percent of our time educating themhundred houses per year.” the reactions they encountered. Individuals on how to be an entrepreneur, or how to Kent got his start in real estate after a were amazed that the Clothiers could find actually get in the game the right way,”successful career in the wholesaling busi- cash buyers, and build a brand for their in- said Kent.ness with a multi-billion dollar company in vestment business. Rather than wait for the elusive (read:the grocery industry. After leaving the gro- Kent’s businesses were “born out of our “non existent”) “perfect” time to invest,cery business, he was, like many individu- own investing interest. We realized that Kent advises his clients to realize thatals, “sucked into” the real estate industry what we were doing was so unique, that we “there will never be a better time, [your]by those infamous late nite infomercials, needed to share it with other people.” inaction is costing [you] the opportunity ofhowever unlike so many who try their hand Investors who purchase their systems are a lifetime!”at real estate investing and fail, he put ev- provided with access to a wealth of infor- “There’s never going to be another op-erything into his businesses and has grown mation on real estate investing, including portunity like this,” said Kent, “and yes, it’sthree successful ventures in addition to webinars, access to online cash buyers, supposed to be scary, it’s supposed to be aworking with his family’s business, Mem- continuous customer support and access to little unnerving, but it’s also what, a truly wholesale invest- private lenders; virtually everything a seri- it exhilarating, it also makes it very excit-ment company. ous individual needs to grow their invest- ing, it also makes it so rewarding when you A focus on creating a relationship with ment business. finally get there, when you finally achievetheir clients and meeting their needs, as More than just great customer service the level of success you desire. ” PAGE 19 • 2011
  17. 17. Disciplined InvestingMastering the Art of the Flip by Anita CooperMastering the art of wealth creation takes a transaction — you’re flipping real estatetime, it takes dedication, and most impor- without the risk. get past that obstacle, whether you have totantly, it takes direction - guidance from Black Belt Investors is unlike many oth- go around it, over it, through it or undera wise investor who has himself mastered er real estate consulting, educa- it. If you can learn that from your coach,his own destiny through smart investment tion and investment firms. you will find yourself in a profitable posi-strategies. “I truly believe that if you tion. I know with a few of my realty-based Sensei Gilliland, founder and presi- want to become a real es- techniques, you will be able to pass anydent of Black Belt Investors, has trained tate entrepreneur and cre- obstacle and get paid.”hundreds of investors to grow their ate your real estate cash “One thing about Black Belt Investors,”wealth through his “action oriented and machine,” shared Sensei, shared Sensei, “is that one of our primaryresults focused” training programs. Uti- “you need proper training goals is keeping our investors engaged alllizing discipline gained through years of by an experienced instruc- the time. We’re not a fly by night companymartial arts training, Sensei has created tor that practices what that trains students for 3 days and leavesa program designed for all levels he teaches. You them to do the work on their own. We’re aof investors who need guid- also need company that reaches out to help the stu-ance and direction and the instruc- dent to get to the next level. We accom-who desire to create a tor to take plish this through my coaching programreal estate business you from which is directly with me and not throughthat is cash flowing classroom a call-in center that answers questionstens of thousands instruc- from a script. We also keep investors en-of dollars every tion to gaged through multiple free webinars,month. applying workshops, on-site mentoring and my Every experi- the tech- free monthly real estate club meetings inenced, or “black niques in the Southern California, which keeps me ac-belt” investor, was trenches to help countable as I must show my face thereonce a “white belt” you develop every single month. If I was over promis-(beginner). He did not your newly ing and under delivering, then I would beattain to his advanced posi- acquired skills exposed at that club meeting. Our inves-tion overnight; his knowl- and put you on tors keep coming back because they’re en-edge increased as he put the fast track gaged, and when they’re engaged they be- Deals are not going to fall in your lap, deals are created.his training into practice. He also did not to getting paid. There’s a lot of real estate come more successful. The only way nottrain on his own, rather he had a teacher trainers and gurus out there that just pro- to be successful after one of my trainingsthat led the way. mote fluff and stuff. They glamorize real is if you were to unplug yourself.” It’s vital that you find a successful men- estate to be extremely easy and profitable You will learn by doing. “If I were totor, someone who is interested in helping all the time, and yes, real estate can be ex- train you to wholesale properties, weyou achieve your business goals. If you’re tremely profitable, but the reality is, you’re would develop a battle plan, grab yourlooking for immediate cash, wholesaling going to have to do some work. Deals are hand to lead you onto the field, and startis the best place to begin. Black Belt In- not going to fall in your lap, deals are cre- doing the business. There is nothing bet-vestors will train and coach you on how ated. Just know that you will have some ter than hands-on training,” shared Sen-to control properties and create immediate deals that are extremely easy that will put sei. “Think about it, if you were to learncash without the use of cash, without the cash in your pocket quickly and with oth- how to kickbox, and I had a kickboxer thatuse of credit, and without the use of loans. ers you’re going to run into obstacles - it’sBasically, you become the middle man of up to you as an investor to learn how to Continued on pg. PAGE 20 • 2011
  18. 18. A Way to Effortlessly Flip or Rent Cash Generating Properties in the Hottest Markets Across the Nation We call it Remote Rehabs! Almost everything has been done for you, we have: • Strategically Targeted Markets to Buy cheap, Fix Easily and Sell Quickly • Generated a Revolving Inventory of Deeply Discounted Properties starting at $20K • Taken Away the Headaches of Deal Searching, Pencil Pushing, Rehabbing and Sales • A Success Manager to Keep you Abreast and Coach You Throughout Your Deal • Basically Put Time Back on Your Side to Rehab Houses without Lifting a Hammer • “Gain Complete Control Over Your Life and Spend Less Time on Doing Things You Hate Doing By Using Remote Rehabs, a 100% Hands-Off Fix and Flip System.” “Exceeded Expectations” “Wow! Just wow! I don’t even know where to start with all the things that Remote Rehabs has done for me. Know that list of benefits that Black Belt Investors offers? Well they are all completely, one hundred and fifty percent true! All I know is that Remote Rehabs is the simplest and most profitable program I have ever experienced.” - Pek Lee Choo - Chicago, IL “Simply Amazing” “Here is what I did: I enrolled in Sensei’s program Remote Rehabs, he found me a deal and his team did all the work A-Z. Soon after the rehab and listing the property, I was amazed to receive offers on my investment! At first I put it off to blind luck, but within 45 days I receive a check for over $17,000 in net profits and I’ve been smiling since.” - Lynn McCloskey - Concord, CA 27 Days! ash Flow 51 Days! Sold in E quity & C Sold in Indianapolis, IN Phoenix, AZ Indianapolis, IN Purchase Price: $43,000 Purchase Price: $45,300 Purchase Price: $36,500 Repairs & Misc.: $32,000 Repairs & Misc.: $4,200 Repairs & Misc.: $22,700 List Price: $110,000 Fair Market Value: $71,000 List Price: $99,900 Sold Price: $110,000 Equity Position: $21,500 Sold Price: $95,000 Net Profit: $25,100 Cash Flow: $725 mo / 8,700 yr. Net Profit: $27,250 Cash-on-Cash Return: 33% Capitalization Rate: 18% Cash-on-Cash Return: 38%Black Belt Investors’ Remote Rehabs program is a truly unique and phenomenal wayto build cash quickly. Believe that Remote Rehabs is without rival in any shape and form.Black Belt Investors stake their reputation on the fact. By getting involved today, you willbe receiving a profitable and automated hands-off rehab business with its time tested meth-ods, as well as Black Belt Investors’ 15 years of experience. Trust me... This is one chanceyou cannot afford to pass up; Take Action Now!Office: 951-280-1900
  19. 19. Dave’s RE Tips Wealth Real Estate Fro m th eP ub lish ers of Re alt y4 11 Vol. 1 • No. 3 • 2011 How could a real estate “investor” flip houses for eight years, only to wind up with no assets, no cash flow, and no income? by Dave Lindahl Serving the Needs of Accredited Investors - INSIDE: Information to Grow and Maintain Your Wealth 8 TurnaaProfitable Business 10 Be a Private Lender, 18 Zero DownSecret Recipe into Real Estate Hobby Learn to make BANK! Learn Our InvestmentsI started working in real estate with ture appreciation. After all, he always got expenses. The result: at the age of 65, his my friend, Walter. We both started $5,000 plus upfront in “option consider- net worth is only about $33,000. And that’s out rehabbing houses, but there were ation” and he always sold his houses and not the worst part... if he stops buying and two big differences between us. First, made a profit. Over a three year period, he selling, he’ll have no income to live on!I was a lot younger; I was 32, Walter was grossed an average of $109,000 per year. That’s because he has no income-produc-58. Second, I grew my net worth and cre- Sounds pretty good, doesn’t it? ing assets. No positive cash flow. No an-ated a hands-free passive income. Walter, Unfortunately, the IRS calls him a “deal- nuity. And no equity. Now he looks backby contrast, got hooked on buying and er”. That’s because he rarely holds a house at all of those years and realizes he madeselling. Why? for more than a year. So his profits are a big mistake. He was afraid of tenants, so he rarely taxed at the painfully high rate of “ordinary Most of the homes he bought in the mid-rented houses. When he did, it was always income”. For example, if he sold a house 90’s have doubled in value, but he soldon a “rent to own” basis. (He offered the for a $29,000 profit, that’ll cost him about them all before they had a chance to appre-tenant a lease option). After all, single $10,000 in taxes. ciate. He gave away hundreds of thousandsfamily homes don’t generate much posi- After overhead costs and taxes, Walter’s of dollars in appreciation. (And the IRStive cash flow. “take home pay” is only about $60,000 per took a third of his profits). He never bought Walter didn’t mind giving up his fu- year. And every dime pays for his living Continued on pg. PAGE 22 • 2011
  20. 20. TrueWholesaleHouses, LLC “Equity Day 1, True Cash Flow, Peace of Mind”We are proud to offer a proven cash flow investment with substantial instant equity. The investor receivesthe best of both worlds a true turnkey investment backed and managed by a team of life long real estateprofessionals.The Genesis of True Wholesale Houses, LLC is taken from a deep understanding of cash flow real estateinvesting properties and what it takes for the passive investor to succeed. The investor that chooses toinvest with True Wholesale Houses, LLC will enjoy a predictable monthly cash flow and instant equity.True Wholesale Houses, LLC takes the work and worry out True Wholesale Houses, LLC bringsof owning a rental property, while maintaining a proven cash investors Wholesale to Wholesale dealsflow to the investor. as opposed to Wholesale to RetailNo more worrying about:1. Collecting Rents. HERE ARE SOME OF OUR NEW ADDITIONS TO2. Maintenance Emergencies. OUR SELECTIVE INVENTORY3. Finding a Tenant.4. No more worrying about managing property and managing your managers.5. Property Taxes.6. Finding the right home in the right neighborhood.7. Insurance.True Wholesale Houses, LLC is your Equity Partner for thelife-time of the transaction. Our partners on the groundhave a stake in the home, the tenants, and preventing main- Atlanta, GA - $19,500 Equity DAY 1 Net Investor Cash Flow $340/Mo • Note Price $51,000tenance problems by doing a quality re-habilitation on theproperty before we place a tenant.True Wholesale Houses, LLC pays monthly cash on cash 9%return for the term of the note. If the home has a vacancy,we still pay you every month.As your partner, True Wholesale Houses, LLC will managethe property and sell it when the market recovers. If youwish to keep the cash flow and the 9%, you as the investorcan dictate an extension on the note, holding the home in Jackson, MS - $17,500 Equity DAY 1the caring hands of True Wholesale Houses, LLC. Net Investor Cash Flow $262/Mo • Note Price $35,000True Wholesale Houses, LLC is here to work with you to giveyou the best value for your money. We are your true whole-sale partners so we can all prosper together.For information, contact:888 285 1900 Atlanta, GA - $20,000 Equity DAY 1 Net Investor Cash Flow $309/Mo • Note Price $53,000 Join True Wholesale Houses, LLC ! Now Website:
  21. 21. True Wholesale Houses Offers Investors Security & ReturnsT by Anita Cooper ruly unique, truly their profit up front. Our profit is amazing, truly one Rock-Bottom Prices, Secure deferred until the property sells. of a kind. True Returns & Built-In Exit Strategy And like the triple net lease, we of- Wholesale Houses fer the same thing — investors get is different from ev- their payment monthly, regardless ery other investment of whether it’s rented or you’ve come across. With this program, investors Jay Hinrichs, managing owner of Step 1 never have a cash call and theyTrue Wholesale Houses is uniquely True Wholesale Houses, don’t have to worry about any of acquires a foreclosed orqualified to provide investors with the maintenance. True Wholesale REO propertytop-notch investment opportuni- Houses deals with all the manage-ties that promise consistent returns. ment headaches associated withHinrichs is both a licensed mortgage Step 2 owning and managing an asset.banker in the state of Oregon, and a Partner Company, Unlike other investment com-licensed real estate broker in Cali- Portland Funding LLC, panies, Hinrichs says that at True makes a loan at Truefornia, Oregon and Mississippi. Wholesale Houses, both the prop- Wholesale Cost Hinrichs shared his reasoning be- Creating Instant Equity erty manager and the rehabber arehind True Wholesale Houses’ cre- owners of the property. “Our guysation; “As a lender, back in 2008 on the ground are vested in the Step 3and 2009, like every other lender at True Wholesale Houses properties. They have an ownershipthe time, we had foreclosure prob- does a complete Reha- interest, and they too are workinglems, I looked at the model and bilitation of the property, for the equity bonus when we sellsaid, ‘There’s gotta be a better way creating a problem and these properties. Our ownershipto protect the investors than just let- maintenance free interest in the properties, assures propertyting them go off on their own.’” Step 4 investors that the assets are being Concerned about this trend, Hin- True Wholesale managed to their highest potentialrichs devised the current model that Houses tenants the for profit,” Hinrichs maintains. property creatingTrue Wholesale Houses follows: His forecast of the market is ex- instant cash flowThey provide professional invest- plained: “We believe we’re in thement and property management middle of a ten year cycle, and that Step 5experience that guarantees both in three to five years we’re going The investor buys the notethe company and the investor yield from Portland Funding, to be coming out of that cycle andsubstantial profits from their col- gaining First Deed of Trust once we see a chance to sell ourlaboration. on the property, and a properties at a substantially higher “We’ve combined my years of 50% equity position. amount than what the note valueslending knowledge and my years of are, that’s when we’ll start to rollbuying and owning rental proper- Step 6 out of the properties, because thatties, and combined that knowledge Monthly interest is where our big profit is lying.”into a hybrid model that gives the checks are sent There is a steep learning curveconservative investor, who’s look- to the investor for individuals who are exploringing for the utmost in protection Step 7 investing in real estate. Accordingand equity preservation, another 3 - 5 years later, TWH to Hinrichs, what True Wholesaleavenue.” sells the property and Houses does is “mitigate the learn- Hinrichs shares one key differ- investor gets 50% of the ing curve, give a real return basedence between his company and equity built, on top of the on years of experience owning and monthly returns from themost other investment companies: renting rental properties, giving the cash flow generated by“At the end of the day, none of the tenants utmost consideration to principalthese investment companies have preservation. We’re not going toan ownership interest in the prop- lose money. You’re investing witherty going forward, they’ve taken people who do this for a living. PAGE 24 • 2011
  22. 22. stay in these transactions for the throughout the life of the trans- up. “If the investor comes in he shares advantages that hislong haul and for the life of the action.” with us, they already have equi- company has over its competi-transaction. I have put this mod- According to Hinrichs, when ty because we’re putting them tors. His partner, Mike Hanks,el together so that everyone is a one invests with their model, into the asset for literally up to is a successful home builder instake holder and has skin in the they can expect a nine percent 40% less than anybody else is Oregon. He has built over 500game. As long as we buy in the cash on cash return with no going to sell it to them for,” he homes. Hanks also has an ITarea we want to be in, rehab to downside, for the life of the in- says. background and has set up prop-our standards, not just to rental vestment. Then, when it is sold, In addition to Hinrichs’ ex- erty administration systems forstandards, treat our tenants like (they believe that time frame to tensive experience in mort- Guardian Management, whichthe gold that they are, the rest be within three to five years), gage banking and real estate, had 11,000 units, so they havefalls into place. Our cash flow there’ll be another 30 to 50 the tools to manage hundredsis great, and our investors get percent equity payday for the and hundreds of houses.taken care of.” investor. “Our partners on the ground The reward is a real estate in- Compared to houses offered are people that we’ve knownvestment with a steady, unwav- by other investment com- for years. They are highly ex-ering return, which may sound panies, Hinrichs says these perienced and very excited tolike an oxymoron. When asked properties are truly “whole- be part of the team and have anhow this is possible, Hinrichs sale.” For example, in Jackson ownership interest in the house,replies: “We assure investors of Mississippi, they were able to other than just managing thea consistent monthly cash flow, offer a home to an investor at house for somebody else andregardless of whether the prop- approximately $30,000 less not owning any of it.”erty is rented or not. We achieve than a similar home offered by Please note:this by using a conservative another investment company. Investors will be provided, uponvacancy and maintenance re- In other business models, request, with banking referencesserve allocation that assure that the retailer takes the equity up to validate True Wholesalethe property is maintained in front, and the investor is bank- Houses’ financials.a peak performance standard ing on property values going
  23. 23. We Help You Get The Most Out Of Your Investment!Carolina Liquidators helpsinvestors like yourself find the bestdeals on properties in your area.Along with providing a resource tohelp you find investment propertywe also pride ourselves in havingthe ability to educate you on makingsound investments and helping yourmake the most out of your business. 1825 Remount Rd. Charlotte. 3 bed 2 bath homeCarolina Liquidator and it’s affiliates are primarily Real Estate Wholesalers. for $55,500.00 • Tax Value $101,900.00With over 40 years combined experience in the Real Estate and Mortgage in- $593.00 Net cash Flowdustry we are able to help you achive your Real Estate Goals that may have nototherwise have been possible. Pricing Property Location Features $55,500.00 1825 remount Rd Bedrooms: 3We have a full staff of people hunting, researching, marketing, inspecting and Charlotte, NC 28208 Bathrooms: 2negotiating these deals. Companies like us can supply you with deal after deal;why not let us do the work for you? We have the time and resources to find these This home is located near downtown Charlotte NC. It is a newerdeals that most likely will not be available to you. 3 bed 2 bath home and will rent for $850.00 a month. With the sales price being half of the current tax value it’s a steal atWe can provide everything an investor would need to make $55,500.00 and netting $593.00 a month cash flow. It is near schools, employment and shopping and less than 5 minutes toa sound decision. We have you covered every step of the down town Charlotte. Don’t let this one slip away.way from planning, based on your financial goals, toproperty acquisition and property rehabilitation. Breakdown: Rent: $850.00 Total Expenses: $257.00We have been doing Real Estate Investing for the last 18 years and mortgage Approximate taxes: $122.00 Net Cash Flow: $593.00for the last 15 years. We have the experience and know how to get deals done. Insurance: $50.00 Cash on Cash Return: 14%Whether your looking for a home to make a quick return on, or homes that Property Management: $85.00produce a constant cash flow. We will find you what you are looking for! “ ” Carolina Liquidator made the buying process so easy. I would definitely recommend their services to anyone who is looking at investing in a home...www.CarolinaLiquidator.com803-325-1925