Real estatewealth

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

Realty411 Wealth Real Estate FOUNDER ADVERTISING Linda Pliagas Kelly Global Marketing info@realty411guide.com 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 Realty411Guide.com Dave Lindahl reWEALTHmag.com Charles Salisbury info@realty411guide.com PRODUCTION realty411guide@msn.com Emma Krull Join Our VIP Social Network: Augusto Meneses http://realty411guide.ning.com 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 24/7/365Realty411Guide.com PAGE 3 • 2011 reWEALTHmag.com

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. www.CaliforniaHomesRepos.com/blog Free! Receive Chris & Ruth’s “Property Analyzer” and guide to “How To Start Your Flipping Business”562-304-7787 or log on to: CaliforniaHomesRepos.com/blog/realty411 www.CaliforniaHomesRepos.com

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 withMemphisInvest.com. 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 �� Realty411Guide.com PAGE 5 • 2011 �� reWEALTHmag.com ��

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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 estate.one-shot 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 all.got 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 manage-Realty411Guide.com PAGE 8 • 2011 reWEALTHmag.com

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 program.gle 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 Rementor.com/Realty411, 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. www.Rementor.com/Realty411Realty411Guide.com PAGE 9 • 2011 reWEALTHmag.com

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 together 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 recalls: “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,Realty411Guide.com PAGE 10 • 2011 reWEALTHmag.com

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 www.SamsREClub.com 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 www.SamsREClub.com “Most people think that motivation comes from the outside, but that is an illusion. The fact is, motivation comes from within.”Realty411Guide.com PAGE 11 • 2011 reWEALTHmag.com

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Invest with the Best The Market Leader is MemphisInvest.com 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.” MemphisInvest.com’s own the market, and someone that is a true turn- The Clothier family established Mem- company goals and aspira- key provider.” phisInvest.com 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 MemphisInvest.com 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 MemphisInvest.com makes investingpany for their out of state investments. “If disaster and it is a lot of hands-on work for Continued on pg. 17Realty411Guide.com PAGE 15 • 2011 reWEALTHmag.com

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 properties.money 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.” MemphisInvest.com, 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 MemphisInvest.com 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. 31Realty411Guide.com PAGE 17 • 2011 reWEALTHmag.com

with MemphisInvest.com? “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 MemphisIn-vest.com’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 MemphisInvest.com 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 MemphisInvest.com brings tothe turn-key investment industry is seen clearly by their actions:MemphisInvest.com 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, MemphisInvest.com 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 MemphisInvest.com 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 10%Realty411Guide.com PAGE 18 • 2011 reWEALTHmag.com

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 MemphisInvest.com, 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 makesphisInvest.com, 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 investing, 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. ”Realty411Guide.com PAGE 19 • 2011 reWEALTHmag.com

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. 56Realty411Guide.com PAGE 20 • 2011 reWEALTHmag.com

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 www.BlackBeltInvestors.com

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. 62Realty411Guide.com PAGE 22 • 2011 reWEALTHmag.com

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: http://www.TrueWholesalehouses.com

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 not.company 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. WeRealty411Guide.com PAGE 24 • 2011 reWEALTHmag.com

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 comfor 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

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

Market Spotlight: South East Region LOCATIONS: Rock Hill, S.C. Charlotte, N.C. Atlanta, Ga. ting money into your retirement. They are Florida market. What we do is figure out Kansas City, Mo. as much a part of the team as anyone else what you are looking for and what your Jackson, Miss. involved. It is kind of shocking to some goals are and we put scenarios together that COMPANY: of the investors when they come out to will help you achieve those goals. We have Carolina Liquidator visit our office because we have so much a great team that works daily on achiev- CONTACT: community support, we have churches and ing the goals of our investors. Our team Kevin & Alex community leaders that work with us to includes our research specialist, Emily ph: (803) 325-1925 help keep the areas clean and safe. Harris; property manager/office manager, CarolinaLiquidator.com Cherry Stegall; and general contractor, Q: Why should investors buy rentals in Bennett James. These three work to keepQuestion: What kind of opportunities your area? the daily operations of our office movingare you seeing in your market? A: Investors should buy rentals in our area so that we can continue to find deals for ourAnswer: We currently have a 67 house because we have good, hard working peo- investors.package that we are working on. It is notonly a great opportunity for us but for in-vestors who are interested in this package.About half of the homes are currently rent-ed and we should be able to place tenantsin the other homes very easily. This is a once in a life time deal for ourcompany, to buy so many of these homes,rehab them, and get tenants in them. It is abig challenge for our company, but we havea great team, and we are up for the chal-lenge. This is just one of the projects thatwe have currently going, we have manysmaller deals also, many in the $30,000dollar range.Q: How is your market handling the eco-nomic slump?A: Being based in the Charlotte, NC area,we haven’t felt the effects quiet as heav-ily as other cities, but we have noticed anincrease in the number of tenants interestedin our rent to own program. More people in Alex Franks and Kevin Burrellthe area are looking to rent but still have adesire to own their own home. With a rent- ple living in our homes. People who rent Q: How long have you personally beento-own program, we are able to place good our homes are mostly blue collar workers investing in real estate?tenants in these homes who will pay each who make a living by working anywhere A: Alex Franks started real estate invest-month because they want to own the home. from retail stores to our local industrial ing in 1999 as a way to generate passiveThis is real simple, the property values are plants. income and long-term wealth. Wholesalingdown and the rents are staying the same or For a very small investment, you can deals is something he continues to activelyeven going higher than previous years on turn a very good income. Literally for what pursue today. By 2006, he made the leapsome occasions. Just to give you an idea, you could buy a car for, you can buy real from wholesaler to a full- time real estatewe have several homes available in the mid estate in our markets with a net cash flow investor.$30,000s that are net cash flowing over of more than $400 a month. Just about ev- Kevin Burrell has 18 years experience in$400 a month with cash purchases. ery home we have is under $50,000, with Real estate and 15 years in the mortgage the majority being in the $30,000 range. lending business, after he bought his firstQ: What is the best part of being an in- house in 1994, Kevin was hooked on realvestor in your city? Q: What makes your company unique? estate investing.A: We handle everything for the investor; A: We don’t just sell real estate to people, In 2008, Alex and Kevin joined forces toit is a total turnkey process for the passive we create portfolios, we are currently in create Carolina Liquidator, LLC. They bothinvestor. We take care of our tenants just these areas: Charlotte, NC; Rock Hill, SC; specialize in being able to quickly analyzeas well as we take care of our investors. Atlanta, GA; Kansas City, Mo; and Jack-After all, these are the people who are put- son, Miss. We are also expanding into the Continued on pg. 31Realty411Guide.com PAGE 27 • 2011 reWEALTHmag.com

Americans Flip to Australians AZ Property Tour Explains HowP roperty tours offer out of area vestors can combine full-time demanding panded into other markets. investors the perfect opportu- careers with the flexibility and high profits “During the last two years we have nity to learn about markets and that part-time real estate investing offers. done extensive studies on the hardest hit the cash flow deals they offer. REO Bailout has been acquiring, rehab- markets in the U.S. We have actually put Investors who are interested in bing and selling properties to wholesalers, people on the ground in these markets toinvesting in Phoenix get a first-hand look at the growth and de-won’t want to miss velopment these areas offered.out on REO Bailout’s Currently, Phoenix is the destination offirst three-day proper- choice.ty tour, scheduled for “Arizona, and the greater Phoenix area,October 8th, 9th and have shown greater growth potential and10th (see below for the commitment to improve infrastructure.more information). Many Fortune 500 companies have made The tour is being Phoenix their home, capitalizing on theproduced by REO low cost of housing and low tax base. ItBailout, a premiere is because of this commitment and theirreal estate investing actions to improve this city that we feelcompany based in Phoenix is the best fit for us at this time.”California. Investors can have a variety of cash-flow Owned by Mike deals to choose from, Barker explains,Barker, a 20-year law enforcement profes- flippers and buy-and-hold investors for “from condos, single family residences,sional who currently serves as a SWAT of- many years. Their expertise began in theirficer, Barker is a prime example of how in- own backyard of California and soon ex- Continued on pg. 57

Creating Wealth in the Stock MarketD id you know creat- When Hollywood actors and Silicon then pay you something called a premium. ing monthly residual Valley executives want to increase their In this example the premium is $.90 per income in the stock share. The price that you’ve agreed to sell market is just a click wealth, they turn to Tyrone Jackson the stock at is called the strike price. In thisaway? Now is a great time to be case it’s $10.a stock market investor and trader. they acquired. So in the above example you sold a callIn the last fifty-two weeks, shares of com- Mr. Gates and Mr. Buffet both follow a option and earned a $.90 per share pre-panies like Netflix (ticker NFLX) have risen simple formula. Make your money on Wall mium. Simultaneously, you agreed to sellfrom $95 per share to over $300 per share. Street and invest the profits in real estate. the stock at the $10 Strike Price. No mat-Similarly, shares of athletic yoga apparel Why stocks? Stocks are easy to buy and ter what happens in this transaction, if themaker LULU Lemon (ticker LULU) have sell. As a stock market investor, you have buyer decides to buy the stock from you orgone from a fifty-two week low of $15 to the advantage of being able to trade from let the option expire, you get to keep the$64. That’s a 400% percent increase. anywhere in the world as long as you have $.90 premium. This year has seen explosive growth in internet access. Next, when you buy and The buyer of the option could choose tostock prices and there’s more to come. Is it sell stocks there are no credit checks, clos- exercise that option at any time before thea big surprise to the experienced trader and ing costs, title searches or PMI (Protective expiration date and pay you the full $10.investor? The answer is no. Here’s why: we Mortgage Insurance). It’s possible for you If the buyer decides to exercise the option,are in the middle of a technological revo- to purchase shares of a company at $50 and you would be obligated to sell the stock tolution. The use of hand held devices and sell them a week later for $55. That’s a ten him or her at the $10 strike price but youthe mobile applications that accompany percent profit. would keep the $.90 premium.them are exploding worldwide. As a stock Trading stocks can be a fast or slow Let’s look at the total profit:market investor, you can cash in on almost transaction. Either way, it’s a simple buy Stock bought at $9.75 and sold at $10every trend you see around you. All of this low and sell high scenario. In a case like = .25 per share profit or 2.5% returninnovation is financed, in part, by investors APPLE (ticker AAPL) it’s buy high and Plus .90 premium. =like you and me. sell even higher. Apple has a record four- .90 per share profit or 10% Here’s how the game works. We pur- teen straight quarters of top line revenue Total profit on trade = 12.5% per monthchase shares of companies that are publicly growth. If you purchase shares now, the Great News About Future Wealthtraded. The capital raised from “going pub- potential for future growth is still present. There’s still time for you to earn big buckslic” finances R&D, marketing and advertis- A $10,000 investment in Apple stock five as a stock market investor. With Facebooking. In essence, we help finance the boom. years ago would be worth $70,000 today. and Twitter set with IPO’s (initial public of-Our reward is evident when we purchase ferings) planned for early 2012, you can getshares of let’s say XYZ stock at $50 and Monthly Income in on the ground floor…. sort of. With Wallone year later those same shares trade for Some stocks allow you to produce monthly Street’s fascination with “all things social$120. That’s over a 100% increase in our residual income by selling covered call op- media” at an all-time high, financial institu-initial investment. tions. What are tions and hedge funds are sure to bid the How do you choose winning stocks? covered call op- shares of these companies higher andHere’s the big secret: on Wall Street, it’s tions you ask? It higher as their profits increase. So whatall about revenue. When a publicly traded works like this: are you waiting for? You have a lot to becompany’s quarterly and annual revenues Let’s say you excited about. Your next move is to startrise, ninety percent of the time so does the purchased 100 to educate yourself about stock tradingstock price. Your job is to learn how to read shares of XYZ and investing. From there, you’ll be onan income statement and choose winning stock at $9.75. the fast track with two different winningstocks. To do that you’ll need a financial Instead of selling asset classes, stock and real estate.education. XZY stock at a higher price after Tyrone Jackson is the founder and cre- The Winning Combination you purchased ator of the Wealthy Investor program.The most successful investors know the the shares, you Each month, Mr. Jackson teaches be-road to millions is paved when you have a sell the rights to ginners and seasoned stock marketbalanced portfolio of stocks and real estate. your stock first to create guaranteed in- investors how to produce monthly income If we look at the two richest people in come. Selling a call option means that you ranging from $5,000 to $30,000. Visit www.America, Bill Gates and Warren Buffet, would be selling the right, not the obliga- TheWealthyInvestor.net for details. A fre-they made their billions from owning shares tion, to someone in the market place to buy quent radio and TV guest, Mr. Jackson wel-in publicly traded companies. Some com- that stock away from you at the $10 price at comes your feedback, send to: feedback@panies they started themselves and others a later date. The buyer of the option would thewealthyinvestor.netRealty411Guide.com PAGE 29 • 2011 reWEALTHmag.com

Property Rehab Tours Hit Southern CaliforniaC hristian and Ruth are real es- were already investors, most of them were and carry the property until it’s sold to a tate investors who are also looking for the type of surge in cash that retail buyer. They rely on good business known as the “Property Flip only real estate can provide in today’s great relationships with REO brokers and real Pros.” They regularly take a foreclosure market. estate agents who bring them deals often. bus load of investors They also utilize well trained virtual assis-around Southern California to show tants to scout different multiple listing ser-them their own projects and to teach vices for deals and also to help them submitthem how to rehab properties. They low ball offers.personally are taking full advantage Many offers need to be made before oneof the current foreclosure market. sticks. One of the best ways to learn is “Sometimes we’ll land a deal that wethrough experiencing things first forgot we made an offer on,” chuckleshand, the same holds true for rehab- Ruth. In addition to scouring the MLS,bing properties. The best way for po- Christian and Ruth buy properties at auc-tential flippers to learn how to rehab tion and pick up discounted REOs andproperties is to learn from the pros in shortsales, they also on occasion work withperson. This is exactly why Christian distressed owners and negotiate short sales.Yepez and Ruth Ortiz decided to start Being bilingual (English/Spanish) givesproviding investors with property tours. New investors find this property flip tour the team a competitive edge in bargainingThe experienced rehab duos have been flip- very educational, there is a lot to learn, this directly with contractors for the best rehabping for 15 years. “Many investors want to is the Real World of the property flipping estimates.do what we do, but they don’t know how,” business. “Cost is a big factor in the success of aRuth says and adds: “We take them through Ruth and Christian provide one of the rehab, we try and hire the most affordablethe process and we tell them what we do to few property bus tours in Southern Cali- crew we can even if it means having to su-add value and make the property sell faster fornia. When asked what areas they like pervise them more,” admits Ruth.and for more money.” to focus on, Christian replies: “We will go The last entire home rehab they com- The tour I attended was frequented by anywhere the numbers are good.” pleted cost only $25,000. Regular pricea group of about 30 investors. All were Like most experienced rehabbers, Chris- for the same project elsewhere runs aroundeager to learn some real estate secrets and tian and Ruth rely on a combination of pri- $40,000. That price includes a new kitchen,shortcuts. Many of the people on the tour vate and hard money to acquire, renovate new two bathroom remodels, new floors,Realty411Guide.com PAGE 30 • 2011 reWEALTHmag.com

new interior and exterior paint, new land- Market Spotlight, pg. 27scape, and other smaller upgrades, such as that seem impossible, and approaching the works, which we should be launchingnew appliances. deals from every angle. They are willing to soon, but we’re keeping that a secret! What struck me most about Ruth and share their knowledge with other investorsChristian’s tour is the fact that they so gen- and help them with their real estate goals. Q: What is your real estate or manage-erously reveal all their secrets. They also They are active spokesmen to several real ment philosophy?encourage you to use their team for their estate seminars and radio shows. Caro- Our team philosophy is simple, Don’t sellown projects, including hiring their assis- lina Liquidator has easily been involved something that I would not buy myself.tants, handymen and gardeners. in more than 100 real estate deals in the Make sure to treat tenants like family but “We don’t mind giving our secrets always keepaway,” Christian says, adding: “Because strict rules andthe truth is most investors can’t do what abide by them.we do because real estate is not that easy. At the end of theYou have to take action, you have to work day real estate isto find deals, you have to be creative and still an invest-make fast decisions.” ment so make Rehabbing a property is not for the weak sure to haveat heart, it takes a lot of time, energy and goals and struc-knowledge. Once investors realize how ture each deal totime intensive it is, many opt to instead align with theselend their available funds to other rehab- goals.bers, like Christian and Ruth. In this way,the investor can still be part of a rehab but Q: What tips or advice do you have for our readers? A: The best advice we can give someone is to York County, South Carolina area, the in- do your homework. Educate yourself on vestments range in prices from $10,000 to real estate investments, and according to $2.5 million. your financial situation, find the type of They continue to invest in real estate, deal that works best for you, whether that grow and develop a stronger property be commercial, cash flow rentals, or retail. management company, while spending Prepare yourself so that you understand allnot be directly involved. “We have inves- more and more time consulting real estate the positives and negatives of buying realtors who like to do rehabs with us and it investors on the happenings in today’s estate. Once you feel prepared, find a teamworks great. We find the deal, handle the market. that fits you.work and sell the property. They get a great, Our advice to people new to investing issteady return, and they can be involved in Q: Are there any special financing to only buy one or two properties, that waya rehab without doing the work. It’s a win/ or programs available that investors you can analyze your experience and fixwin for everyone,” she says with a smile. should know about? any flaws before you make any other deci- Christian and Ruth will continue do- The best deals will always be cash deals, sions on any other deals. Make sure you areing rehab tours with their own properties, but we still offer 20% down deals, we dealing with a solid team with reputableif you are inter- Claim Your also have some new finance options in references.ested in learninghow to be a part Free Gift Belowof this incredibleexperience, visittheir website or Join Our VIP Social Networkcall them. In addi- FREE Global Membership * LIVE Chattion, once you goto their website, http://realty411guide.ning.comthey have a FREEGIFT for you, Find Events, Deals, Friends & MOREsomething that you can use for your real Questions? Comments? Referrals?estate business today.www.CaliforniaHomesRepos.com/blog/ email: info@realty411guide.comrealty411 or call: 562-304-7787Realty411Guide.com PAGE 31 • 2011 reWEALTHmag.com

T his is an amazing time time sets a trap at both ends of the transac- long-term investor, so the purchase price is to invest in real estate. tion. If you buy too high, you cannot wait not as critical, although buying low is al- You can invest almost for value appreciation and the cash flow to ways an advantage. Time sets a homework anywhere, in almost any bail you out. So, with a short-time horizon trap with an infinity of choices. You can kind of property, and you must focus on a single variable — look at any type of property, from single- profit handsomely. Yet your purchase price. If your purchase price family to multi-unit to commercial or even many people will jump is low enough, you will profit in the short industrial and raw land. You can look atinto the market, lose considerable cash, and term. If you pay too much, it’s difficult to property everywhere, from North Dakotadrop out of the market, only to miss out on profit in a short term. to New York City, from El Salvador tothe greatest opportunity of their lifetime. Time sets an emotional trap when you Thailand. How do you narrow the choices?Others, with significantly fewer resources, get ready to flip your property. As a rehab- Get lost in the analysis and you never buywill amass considerable wealth. What’s the ber your business is flipping. If the project any property at all. Don’t do the homeworkWhat is Your Real Estate Time?difference? Persistence, patience and thor- went wrong somehow, you cannot cure it and you end up with a condo in Detroit orough homework are critical deciding fac- by setting a high sale price and waiting for Miami that you cannot rent and you cannottors. Successful investors develop a plan, an unsuspecting buyer to bail you out. Your afford the HOA fees. You need a strategy toresearch diligently, and persist. In addition, business is fixing and flipping, not holding. identify locations and properties that willsuccessful investors understand the impact The cash you tied up in the project is not an hold value and grow for at least a decade.of a single variable — TIME. Do you un- investment; it is truly working capital that What’s your plan? Probably you cannotderstand how time impacts your real estate you use to run your business. If you bor- afford negative cash flow for ten years, oractivities? Understanding this single vari- rowed “hard money” to do the project, you even longer, while the beach-front propertyable can increase your focus, extend your probably have a time-bomb ticking. When in Paraguay increases in value. Oh, wait.patience, and give you the confidence to you have fixed the property, you must flip Does Paraguay even have a beach-front?persist. Let’s explore how time is the criti- it, at the market price, or even at a discount Long-term property investment requirescal linkage between fix/flip, buy/hold, cash to make sure it moves quickly. positive cash flow.flow/appreciation and success in real estate A little plug here for RBS Homes: weinvesting. Time traps awaiting short-term have analyzed over 500 major metro ar- investors (fix and flippers): eas to identify the very few cities that willHow do you make money in real estate? Homework time trap: Time cannot cure show long-term growth in property value Appreciation or cash flow? a high purchase price. To succeed, you and rental income for the next ten years.Both response are true, so what’s the dif- must buy low or walk away. Call me (925-858-9017) to find out how.ference? One word — TIME. For example. Emotional Time Trap: Time cannot cure asuppose you buy a property at 95% of mar- busted project. If the project went wrong, The Final Time Trap: Is now theket value, that produces a cash flow of 25% take the loss and flip it anyway. If you right time to buy?cash-on-cash. The cash-on-cash return is don’t, you are out of business. A few points may be helpful if you are sit-also called the internal rate of return (IRR). Time rewards the fix/flipper who moves ting on the fence just waiting to jump intoNote this is not the total return on invest- swiftly. If you make many offers swiftly, real estate “when the time is right.”ment (ROI). The ROI depends upon how eventually some seller will take your low-long you hold the investment — time. ball offer. The faster you make many of- •Mortgage rates are at all time lows. Are you satisfied with a property that fers, the faster you get one accepted. Go •Property values have dropped 20% - 35%cost you 95% of market value and produces fast on the buying end of the project. The nationwide, and more in some areas.25% IRR? That depends upon your TIME same goes for the fixing. The faster you fix •New construction has dropped to the low-horizon. If you work at the business of fix/ the property, the faster you can sell it. The est rate since World War II.flip and expect to sell the property in 3-6 same goes for selling. Cut the price and •Real estate investments are producingmonths, then you may not be satisfied with offer some sweeteners to the buyer who cash returns of 12% -35%, depending upona 5% bump in price and a total cash flow can move quickly. Make your profit on the the region you choose.of 6% on your investment. It gets worse. purchase, take your profit on the sale, and •Have you checked your stock portfolioPerhaps you needed three months to get move on to the next one. lately? How’s that working for you?the property rehabbed and rented, you may Speed is one secret for fix/flippers. In closing, I’ll answer the question of thehave lost money on the cash flow because Time rewards the fast fix/flipper with more final time trap with another question:the property was vacant and you have some projects, lower holding costs, and more to- If not now, when?interest cost on your invested funds. tal profit. With my very best wishes for your successTime offers different rewards and sets dif- Time for Buy/Hold Real Estate Investors in real estate investing,ferent traps for each type of real estate For a long-term buy/hold real estate inves-investor. tor, time works differently, setting two dif- Richard Barrett, Partner Time for Fix/Flippers ferent traps, both at the front end. Both ap- RBS Homes, www.RBSHomes.comFor the short-time horizon of a fix/flipper, preciation and cash flow can work for the ph: 925-858-9017Realty411Guide.com PAGE 33 • 2011 reWEALTHmag.com

The Coach’s Corner Dr. Tingley mentors students & helps them achieve success up. When I go out with a REALTOR® toIn Memory: We regret to inform readers look at a property, I ask them to provide the home. Presenting this offer works bestthat Dr. Fred Tingley passed away in early two or three comparables for each of the when you are making it on a bank-ownedAugust. properties I am considering. The compa- property. You have to take the rehab costH rables should be just normal properties, not and the cost of the loan into consideration i everyone! I have been involved REO or short sales. Once I look at the com- so that there is a profit margin for you. in real estate for the last 30 years parables, I will generally do a formulation For example, let’s say the after repair and I have been coaching for the like this: value (ARV) is $200,000. The REAL-last 16 years. I have coached for Carl- TOR® has shown a few comparables toson Sheets, AD Kessler, Robert Allen, Al Once we get the 70% price, confirm that the home we are looking at isLowry, and most recently for Armando worth $200,000.Montelongo. Each program was unique you subtract out the cost of re- $ Here is an example:depending upon how the “guru” wanted pairs and the cost of getting a 200,000 X .70 = $140,000 minushis material presented. hard money lender. $20,000 for rehab cost (The typi- I have really enjoyed my time with each cal cost of minor rehab).of these individuals and over the years I will take 70% of the comparables. I do Take this $120,000 subtract $14,000 forhave picked up many great ideas. know that most lenders wish to loan 65% hard money costs = $106,000. Today, I want to talk about how to buy, but your chance of getting a property at This is what you would typically pay forfix and flip a house. I would like to focus on 65% are slim to nil. Once we get the 70% the house.the formula to choose a home you wish to price, you subtract out the cost of repairs To purchase Dr. Tingley’s book or learnbuy, fix and flip. The first thing is to know and the cost of getting a hard money lender. more about his legacy, please visit:what the home will sell for, once it’s fixed What is left is what you can safely pay for www.RealEstateInvestorsStore.com

Market Spotlight: Phoenix, AZ LOCATION: Phoenix, Ariz. COMPANY: Whiterock Capital, Inc. CONTACT: Richard Edrosolin or Clarence Eleccion pand their port-P (888) 289-0221 folio by adding in some Arizo- eople in California are used to na rentals. For commuting long hours for work, clients who are but one investor is adding more not interested in miles than usual on his odometer. landlording but Richard Edrosolan, CEO and are looking forfounder of Whiterock Capital, leaves his golf passive income,course estate near the Pacific Ocean (in Ventu- He has a privatera County) to go to a red hot market: Phoenix, lending pro-AZ. “I’m doing four rehabs there right now,” says the 30-year real gram where investors receive 10% interest on their funds, securedestate veteran. Richard works short sales, REOs and trust deeds. by a first position title on the property. He says “We can customize He has experience in buying at both the California and Arizona an investing plan for anyone!” Arizona is providing Richard andauctions. “I just finished three rehabs in California and I’m doing his investors with such great cash-flow that he plans on “bounc- two more as well..” He has rehabbed ing back and forth” for a long time. He adds: “I have great people properties throughout Southern Cali- around me. I have a great team and we work hand in hand. fornia, including Los Angeles, Ventura Richard’s quest for rock-bottom deals and passive income for and San Bernardino counties. himself and his clients has taken him to many places around the The reason the California rehabber country, yet Arizona’s close proximity and high returns will make went out of state is purely financial. him a part-time Phoenix resident for years to come. “The price points are so different here,” he says during a telephone interview. “A house that in California would be about $700,000 will cost around $175,000 here,” he says. “You can make 18% to20% return without batting an eye.” Edrosolan was also lured to Arizona by cheap labor and supplycosts. “I can get a whole house done for under $8,000,” he ex-plains. The master rehabber has worked multiple markets aroundthe nation, including: Georgia, Utah, Texas, Washington, Nevada,South Carolina and Hawaii. His quest for cash flow and diversification led him outside ofhis home state early on. “I realized early on that it was foolish toonly work the California market because it was foolish to tie up somuch money just in one deal. Phoenix is great because Californiainvestors can go back and forth easily.” One of his niches is to find absolutely discounted deals for him-self as well as the investors that entrust him with the privilege ofexpanding their portfolios. Another of Richard’s niches is to find absolutely discounteddeals, which are purchased for cash. The properties are then resoldto locals at market value, with seller financing in place. The newbuyers happily pay him a large cash down payment and they arewilling to pay higher interest rates in exchange for the opportunityto own a home. Richard can find investors solid rentals in the $20,000 to $70,000range, generating anywhere from $650 to $800 month in rents.Typically, he likes to buy in working class areas and his bilin-gual skills serve him in dealing with his mostly Spanish-speakingArizonian retail home buyers. Currently, he is picking up as many rentals as he can for himselfand his clients. He recommends that other investors start or ex-Realty411Guide.com PAGE 35 • 2011 reWEALTHmag.com

Top 20 Excuses forby Bill J. Gatten, NARSCor, LLCE xamine a few selections from the Top-Ten List of the Best Excuses for Failing, and see if any apply toyou (…and remember: “He who hesitatesalmost always wishes he hadn’t,” and “ex- a matter of knowing how to do that and breaking some mental molds. THE LIST FAILURE courses and don’t do what they teach, andcuses and reasons are virtually indistin- 1.“I do everything my mentor and the gurus have no contact with reality”guishable, and good reasons for failure.) tell me to, but appreciation’s so good in my 15. “When I see how many foreclosuresIn my business of teaching Creative Real area that sellers don’t want to make deals” are happening and how many investors areEstate buying, selling, investing and man- 2“I do everything the gurus tell me to, but losing money, I can’t bring myself to jumpaging I am always astonished at the num- prospective buyers are broke and equity is into what is obviously a losing business”ber of people who subscribe to my training non-existent” 16. “Every guru I get involved with whoand mentoring programs and consider it the 3.“I keep on trying, but the financial con- has made a ton of money on creative fi-finest financial choice they ever made… dition of the country, and especially in MY nancing made it a long time ago and is nowthen never do a single transaction. area, is just too tough to be able to make either broke or almost broke” I’m told that the industry average is any money” 17. “I just don’t have enough hours in asomething like 5%. In other words, of the 4.“I keep plugging away, but there’s a rental day, working my own job plus trying to bepeople who buy books and courses and at- shortage here and sellers are unwilling to a real estate investor”tend the seminars, 95% never do anything make deals because they can rent a house 18. “I joined a real estate investment clubwith the education they paid for and re- out in a minute for more than normal rent” and find that 75% of the people there haveceived. When I discovered this I was ap- 5.“I want to buy and hold, but rentals never bought a stick of property and thepalled, but in checking our own records I abound here, and the competition and the 25% who have are people with money andfound that we were slightly ahead of most, economy, eliminates any chance for break- good credit”but not by much…about 7% versus 5%. even rents” 19. “I want to be wealthy, but can’t bring A dear friend, now deceased, A.D. Kes- 6. “I do everything I can, but rentals in my myself to change my job or my lifestylesler, upon discovering this ratio of success area are scarce and rents are high, so nobody and take those kinds of chances”versus failure decided to do something wants to let their properties go” 20. “I bought three properties two yearsabout it by putting a $100 cashier’s check 7. “I tried, but found too much competition and followed all the rules, but as soon as Iin each of his materials packages and out there” got them the bottom fell out of the marketcounting the number of checks that actu- 8. “The course says don’t deal with REAL- and I lost them along with my life’s savingsally came back cashed. He came up with TORS® and to go after the fixer-flips; but and all my good credit and am now close tothe same percent, 5%. In order to better FSBO fixer-upper prospects with any equity being sued by the lenders for my deficien-this mark he began offering ongoing train- at all are just nowhere to be found” cies and back payments”ing, personal coaching, and newsletters, 9. “I’ve called a few prospects, but REAL-annual re-treat meetings and so on. His re- TORS® in my area don’t want to work with Free Houses. Now let’s go back and countsult? He increased his success rate to about Creative Finance types like me” the number of these excuses that apply to8% - 9%. By following his lead, we are 10. “I’ve bought a bunch of No-Money you (if any) and how many of those areable to get about the same results (7% - 8% Down courses, and the techniques taught all actually based upon insurmountable ob-at last count). sound good at first, but just don’t work for stacles, and how many are no more than Folks, this is terrible and wholly unac- me” excuses for not doing what needs to beceptable! After reading this article I’d 11. “I try to talk to potential sellers by the done..like to have ANYONE tell me why any- dozens, but they figure me out right away Then let’s see how many of those excus-one with half a brain doing no more than and are not interested in “creative finances become foundationless when one adoptsreading this article couldn’t make a ton of ing” the use of the © Title Holding Land Trustmoney in a short time. I’m prepared to 12.“One has to have money and decent Transfer via the NARSCor PACTrust™ orsee our numbers remain stable if I have to, credit in order to make money and I don’t NEHTrust™.but I will still scream to the heavens that have either” This is to say the property is placed intoI don’t know why this has to be the case. 13. “Every time I find what I think might be a specialized inter vivos trust by the sellerWhat’s so difficult here? ‘Find an unwant- a deal, I find out that the property is over-en- with payments being taken over by youed property…find an unwanted buyer who cumbered and fraught with back payments as the seller’s co-beneficiary, whereuponwants the property, take it off the owner’s and unpaid taxes” you appoint a third-party as a resident co-hands…then squeeze them together until 14. “People who sell books and courses beneficiary who lives in the property, cov-the money squirts out. That’s it! It’s merely make their money from selling books and ering all mortgage payments, property taxRealty411Guide.com PAGE 36 • 2011 reWEALTHmag.com

and insurance, thereby leaving $250,000 when I sell the prop-you with a bit of a positive cash erty following our expunge-flow and a large share in future ment of the loan. Our successequity build-up from principal thus far = 100 plus transactionsreduction and appreciation… closed; 150 in various stages ofand all without credit qualify- progress and 15 new closuresing or a down payment. in final negotiations. To initiate Remember that this type of handling for a homeowner (in“seller” is not worried about foreclosure or not…even aftermoney upfront (as there is no the bank’s sale of the proper-equity to sell) or allowing you ty), we need $7,995 upfront forand your resident co-beneficia- a refundable Trust Contingen-ry take over his Pain and get cy Fund in order to handle thehim away from his cash-drain transaction, and that money isand the threat of foreclosure always fully refunded (100%)and deficiency judgment. Your in full whether we would beresident beneficiary is not con- successful or not.cerned about the over encum- More free houses? Bring usbrance, as he only cares about a short sale that we can closean affordable payment and a and you’ll end-up with 10, 25much nicer home than he could or 50 percent of the profit uponever afford otherwise. Also… re-sale.if the monthly payment is way More? Find a large, fur-out of line for that type of prop- nished home that would beerty, the seller (relinquishing desirable as a prime vacationparty) won’t mind paying a part home, that is (may be) over-of it (perhaps just the property encumbered (and where thetax and/or insurance), which payments are too high for thewill be a lot better for him than owner); then agree to takethe amount he’s been paying: over the payments and man-i.e., the full mortgage payments agement responsibilities. YouPLUS property tax, insurance then put the property into theand homeowner’s association NEHTrust™ and bring in asdues. many co-beneficiaries as you In the above scenario, ask want who will use the propertyyourself whose credit is at risk for a specified number of dayshere; who is making the pay- or weeks per-year. Divide thements for you; who is getting a current monthly obligationfree house (or part of one); and by 10 or 12 to establish whatwho has a virtually risk-free each of your co-beneficiariesreal estate investment despite will pay per-month for theirhaving had no cash or credit to share, and you then charge,start off with. say $10,000 to $15,000 from Want more free houses? each party for their respectiveNARSCor offers a mortgage “time share” rights. It’s easyamelioration program where- to calculate what your up frontby we effect mortgage loan moneys are going to be and CONTACT USelimination, and then sell the BILL GATTEN CENTER how much monthly positiveproperty, sharing our proceeds for Wealth & Education cash flow you will have with, 6520 Platt Ave., St. 548with our finders and network say, twenty co-beneficiaries. West Hills, CA 91307members at the rate of 10 to 50 A couple of these might setpercent of our profit potential. you up nicely for life. 1 800 409 3444 Bill Gatten(For example, on a $1 million FAX 1 800 967 0333 Renowned Authoreliminated or compromised Be sure to read the second part home@landtrust.net National Lecturermortgage, depending upon of this article, with the answers www.landtrust.net & Investoryour status with us (Finder or to The List in the next issue!paid Network Member), you For information on Bill Gat-either get $50,000, $125,000 or ten, email bg@landtrust.netRealty411Guide.com PAGE 37 • 2011 reWEALTHmag.com

hClasses offers both online nationwide • Live Courses available MEET OURlooking to grow preneurs uctory & advanced their business. I : • Videos and Audios available online through WealthClasses TV 24 hours a day TEAM n the game ed Classes available online na- Classes, Work- GARY BOMERSHINE ANTONE work, but do very, very little deal with REALTORS®. You don’t deal • Nationwide Mastery GEORGE shops, of Monop- e 24 hours a day and Seminars offered live on Gary’s strong domainyou receive all the profits. We ex- Over the past five years, Mr. with buyers or tenants. You don’t have to oly there pertise in creative realcall that established his Antone has passive income estate write any offers. weekends sses available online nationwide transactions, sales & mar- reputation as an expert in . You see, instead of dealing with lenders, is a secret keting, give him a unique the fields of private money Testimonials sses available online nationwide that will ability to work with lending and trust deed BANKERS INVESTORS VS. entre- you are the bank and you get to deal with preneurs looking to investing, want you to realize that grow We and has become a those hungry borrowers and investors out urses available online you blown away with “I was completely very make nationwide their business. national speaker and teacher on the is coming from a place this subjects. there who are finding incredible deals. The therich. Whatamount you learn, the quality, the is the and Audios available information...” Jay Biggs one of online amount secret in Mo- where we have been on both best part is that now they are coming to you WealthClasses TV 24 hours a day “... nopoly that allows be MEGA Mil- we were mentored to sides. We’ve been investors and to get their deals funded. Gary Boomershine and George Antone GEORGE ANTONE been bankers or lenders. wide Mastery Classes, Work- the breakthrough you to win lionaires through George’s we’ve CONTACTfive years,LEARN MORE: US TO Mr. Lastly, you don’t have to deal with ten- nd Seminars offered live on Lim system...” Dakota single Over the past game every We want you to see both sides Antone has established his ants, you don’t have to do any of the fix ds Wealth Classes, LLC. experience. reputation aswe expert in and an speak from ups, you don’t have to deal with any of “... time? Now, some people might say buy four it’s a fantastic seminar on really under- 1255 Treat Blvd standing homes and then a hotel. Well, the fields of private moneymonialslookingcreative and uncoventional ways that is 230trust deedtake a banker versus investor at green at cashflow... ”Anand Ayyar Suite lending and So let’s and let’s look at the the problems, and you are the first to make the money. Because who always gets paid investing, and has become a pletely blown away with Walnut Creek, CA 94597 comparison. First THE MONOPOLY SECRET! , the amount you learn, the information...” Jay Biggs national speaker and teacher on the subjects. Support: (888) 888-3612 off, as an investor, particularly a real first? The Banker. One thing that is not obvious here is that as a banker you never have to get a mort- mentored to be MEGA Mil- hrough George’s breakthrough there is no guarantee TO LEARN MORE: a good guess but that estate investor, you gage. As an investor, you still have to get a CONTACT US Fax: have to go out and learn the techniques. For mortgage. As a banker, you don’t have to Dakota Lim you will win. We’re talking about the secret that allows 287-1653 that means either learning how (925) Wealth Classes, LLC. most people have good credit. In fact, you don’t have to tastic seminar on really under- eative and uncoventional the every single time. to wholesale or do short sale deals, or buy you to win ways game 1255 Treat Blvd VISIT OUR WEBSITE@ have any cash. The investor needs to have buy Boardwalk and apartments, buy bank owned REOs, vacant at cashflow... ”Anand Ayyar might say Suite 230 Some people www.wealthclassesaffiliates.com both of them. Park Place. That is another good guess, but94597 etc. Many of you have spent literally Walnut Creek, CA land, Let’s just say the bank is lending money there is no guarantee that anyone is going tens of thousands and in some cases even a to three different people. One is a whole- Support: to land on these sections, so there is no way lot more learning all of these techniques. saler, one is an expert in short sales, and (888) 888-3612 You then have to figure out how to mar- has been doing it for ten years and the other to guarantee that you are going to win the game every single time.Fax: ket in a competing market for all of these person is an expert in rehabbing properties We’re talking about a secret that allows deals. Most people have to send out post- (925) 287-1653 and has been doing it for eight years and you to win the game every single time you cards or letters or buy Web sites and spend has a whole crew. What is happening here VISIT OUR WEBSITE@ play. What is that one secret? It turns out it a huge amount of money on marketing. is that the lender is leveraging all of these www.wealthclassesaffiliates.com is being the bank. If you think about it, in Then they have to deal with sellers and people’s experience without having to go the game you’ve got up to six investors run- talk to sellers, in some cases they have to out and go to a seminar and learn how to ning around trying to buy all the land, try- deal with REALTORS®, they have to find do all of this stuff. ing to build on the land, etc. And ultimately buyers, sometimes wholesale buyers, they What they are doing is leveraging all one person out of the six will win the game. have to deal with tenants and toilets, they three borrowers’ experience and they are The banker always wins the game. Think have to work with contractors and rehab- the first ones to make the money. So you about that for a second. bers and all the headaches. They write of- have someone else learning how to do all Now, in reality and in life, if you think fers and in some cases dozens and dozens of this on their dime and the bank is ben- about it there are many, many investors of offers before they get any accepted. efiting from all of that and leveraging all out there and only a few make it. But the Once they have those offers, then they these people’s time. bankers always win. We want you to think have to go talk with lenders or bankers to One of the questions that has come up is about the game of Monopoly as really two get the money and get access to the money. around the marketing. How does a banker games; there is the banker’s game and then They have to deal with tenants if they are get around marketing? When a real estate there is the investor’s game. In real life it’s holding properties or holding apartments. investor goes out and does all the work the same thing; you have the banker’s game They have to go out and deal with all the and finds the deals, what do they need to and you’ve got the investor’s game. tenants and all the problems with tenants. do? They need to get them funded. There In Monopoly, you can actually own all They have to make the repairs and fix ups are tens of thousands, if not hundreds of the real estate and still run out of money. and deal with problems that can go wrong. thousands of incredible real estate deals You can have apartments, but if you run And they are typically the last to make any that real estate investors are looking to get out of money you start having to turn those money. funded. So it is one of the easiest things to Monopoly cards over and leverage just like Now let’s look at the comparison of the find great deals. in real life. When you run out of money and banker. First off, you don’t actually have to In fact, at the Banker’s Code Seminar you have no more cash flow as a real estate go and learn all the techniques of buying (http://thebankerscode.com/wow/), we investor, you go broke. We have seen liter- and selling and wholesaling. You learn one spent a lot of time practicing and a lot time ally thousands of people have that happen. thing and that is how to become the banker walking through exactly how to find all Some of you may be thinking that being and what we call The Banker’s Code. You these great deals. the banker isn’t a whole lot of fun because don’t have to do any marketing. All the Be sure to get the continuation of this re- you just sit back. Well, similarly for being hard work is done by the real estate inves- p o r t a t : w w w. We a l t h C l a s s e s . c o m / the bank, you can collect the big profits and tors, you don’t deal with sellers, you don’t Realty411 Realty411Guide.com PAGE 38• 2011 reWEALTHmag.com

D ivas �� Estate �� Meet the Real �� Photos, above from left: Kathy Fettke, Lori Greymont, Terica Kindred and Missy McCall Hammonds ��Kaaren Hall, Erica Reynolds and �� Photos, below from left: Crystal Han �� A Feminine Force Begins to Mold �� the Investment Industry �� Welcome�� to the Real Estate Divas section, �� featuring �� a select group of influential women �� from today’s real estate investment industry.�� Their expertise ranges from bulk REOs, syndi- �� cations, fix and flips, IRA investing to buy and �� holds. While�� strategies for wealth creation �� their �� vary, they all share a common goal: To create Linda Pliagas �� founder & publisher a lifestyle that both they and their clients de- �� sire through cash flow and appreciation. �� Realty411Guide.com PAGE 39 • 2011 reWEALTHmag.com

�� I �� s �� nvestor estate, you can quit �� all fondly �� your day job.” In �� remember �� fact, her system can �� the �� heyday �� emancipate 9-to-5ers �� of real es- forever ��replacing �� by �� tate a few �� their income with �� years ago. A magi- �� monthly rental cash �� no cal time when flow. �� was needed money �� for silly things�� like “My properties are �� deeply discounted � �� down payments and �� and they �� are re- acquisition costs. If �� habbed, rented and �� Terica K. Brings �� ZERO DOWN BACK �� one had the motivation to be an ready to go.” At the time of the � �� investor, real estate was attain- interview, she was rehabbing � ��reserves or �� able regardless of properties in Atlanta (her home �� and had just finished other occupation. Well, now Terica city) �� Kindred is bringing those days projects in Memphis and Ari- �� divides her back with her unique system. zona. Although she �� (ZeroMoneyInvestment.com). time between Atlanta and Los �� want to �� investors buy �� “I �� help �� Angeles, her “farm” is nation- �� property without them having �� has done deals in al. Kindred �� to liquidate their IRAs or sav- Indianapolis, Kansas City, St. �� ings,” she says. Louis, Jackson, Birmingham �� says that in order to �� She also does Kindred �� and Memphis. �� make Zero Down Deals, cre- rehabs in her home state �� of Cal- ativity is key. She credits her ifornia �� scouting �� and she is also �� loyal team of private and hard Chicago for future ventures. �� who put up the �� money lenders, She works multiple mar- funds and take on�� the risk so kets, not because she likes to �� she can offer exceptional deals be spread out, but it is due to �� to investors around the world. necessity. “These properties are �� One thing about Kindred is not easy to find, we may have �� that she’s all about systems. only two deals in one city per �� After all, she began to work in month,” she admits. Kindred’s �� Corporate America after she criteria for finding deals is very � �� graduated with a computer sci- specific, in order for Zero Down �� ence degree from University Deals to happen, the properties �� of California, Irvine. Kindred have to fit stringent guidelines. �� expertise burned both ends of the career Kindred uses her � candle by juggling a flexible in technology in her business �� career as a technology consul- with clients: “Ninety seven tant with real estate. However, percent of our investors are after working for Deloitte for out of state,” she says, adding many years, she decided to “We take pictures, video, we What do you get when you’re a member of Pre-Paid Legal? concentrate solely on real es- use Photobucket and YouTube. Confidence in your daily decisions. Peace of mind with your personal affairs. Security for your family. Protection of your tate. “When I was able to re- We also get the property exam- legal rights. Advice from courteous and concerned attorneys. place my yearly salary in one ined by a third-party inspector Answers to your questions. Call today for more information on month, I knew it was time to to make sure everything is up how to access the legal system! leave,” she admits. to code before our investors Lori Fouts - Independent Associate Now, Kindred’s goal is to close.” 510.520.2753 | ppl.fouts@gmail.com help others also get out of the Besides the gratification of www. prepaidlegal.com/hub/lorifouts rat race. “By leveraging real Continued on pg. 55Realty411Guide.com PAGE 40 • 2011 reWEALTHmag.com

How to Flip Vacant article by Kathy Fettke Land to Developers CEO of the Real Wealth NetworkW hile building has Does this mean you should are needed there for the lots to that would cost $16 million to come to a com- run out and buy some land so become valuable? Based on the purchase, but only $2.4 million plete stop in the you can sell it to a public build- amount of inventory for sale to- to option. We took the option! exburbs (areas er? Not exactly. Slick salespeo- day, it could take decades. In the meantime, we will getbeyond the suburbs), infill proj- ple have been hawking “land If you invested that $100,000 the property entitled within 18ects near major metropolitan banking” for years, trying to to buy a home instead of land, months, and then sell the 110areas are hot. get investors to hold land until you could earn $10,000 net in- finished lots to builders for a In fact, finished lots in good it becomes valuable. Unfortu- come each year. After 10 years, total of $28 million. The $10locations are becoming a rare nately, that could be a really you would have doubled your million dollar profit will becommodity as more consum- long wait if the land is out in money. Would the lot out in the split amongst the owners anders become less willing to make the exburbs where there’s al- boonies double in value over investors. In order to acquirelong commutes. ready an oversupply of homes that amount of time? No one this deal, we were able to find John Burns Real Estate Con- from overbuilding in the early knows for sure, but we do know 48 investors to put up $50,000sulting group expects land de- 2000s. that one strategy is predictable each. ROI is expected to exceedvelopment in good locations to Holding land in the outskirts and the other is speculative. 67%.increase substantially this year can be costly if you add the At Real Wealth Network, we To find out more about thisnow that conservative bank fi- missed opportunity of creat- have found that infill projects and other projects, go to http://nancing has returned. Public ing income from that asset. are a safer bet for land flipping, www.realwealthnetwork.com/builders are buying finished Let’s say, for example, that you but they can be quite expen- alameda-terminal or sign uplots near large cities at a faster used your IRA to buy $100,000 sive. That’s why optioning the for a free membership at www.rate than private builders, and worth of land that is located land can be a home-run. RealWealthNetwork.com fortheir market share is growing over an hour from the city. How We recently optioned wa- cutting edge investor educationrapidly. long will it take before builders terfront property in Alameda and turn-key properties.Realty411Guide.com PAGE 41 • 2011 reWEALTHmag.com

S o…you’ve started on the road a best case scenario would be if they have with the company. Meet with the staff, of- to real estate investing: You’ve their own maintenance team. It is impor- fice and maintenance. Are all familiar and purchased a property(ties) to tant to understand how you will be billed well-versed with current property and Fair add to your portfolio. You can for these services. Most property manag- Housing laws? Inquire as to the handling relax, sit back and wait for ers have an “up charge” for managing the of rent collection, monthly statements,those rent checks to roll in…right? NO! A contractors. The norm for this service is eviction procedures, knowledge of Sectioncritical piece of the investment puzzle is between 10%-20%. I have seen companies 8. Vacancies need to be filled as quickly asprotecting your assets and that translates to as high as 40%. If you don’t ask the ques- possible. What’s their vacancy rate? Aver-two words: Property Management. tion, you don’t know what you are going to age time from a tenant vacating to the new A property management company en- be charged. tenant’s lease signing? Effective advertis- Property Management: The Key To Protecting by Missy McCall Hammonds Your Investmentssures that your investments are maintained You should ask how you are billed and ing is crucial to having a large pool of qual-and rented or rent-ready after a vacancy. if there is evidence the repairs have been ified prospective tenants to choose.In my opinion, whether you’re a fledgling made. I can’t tell you the number of clients We strongly encourage potential tenantsor seasoned investor, a qualified property that have told me about buying appliances to get pre-approved when we receive no-management company is a necessity. The for their rental that was never delivered. tice that a property will be vacated: Often,everyday details and tasks of maintaining One picture tells the story!!! we have a deposit and tenant ready to goand renting properties can be daunting. We Finally, you need to know their policy and our vacant-to-rented timeall know that time is money and your time on how a tenant requests a repair and their is 0 days!!can be better spent on finding more proper- policy on when and how quickly repairs Missy McCall Hammondsties and building your portfolio and leave are done. The number one cause for ten- has perfected the art of prop-managing your rentals to the professionals. ants moving is a property not being main- erty management. Missy has tained. A vacant property doesn’t make you bought and sold many properties and her Why is a property manager critical? money! company currently owns and manages inA qualified management company will Last, but most important, is how your excess of 350 rental units. When asked herprove to be invaluable. They are the key money is collected. What is the procedure secret to successful property managing, theto your financial success after you have se- for the collection of rents, monthly state- reply is to have a professional, competentlected a perfect property. They will handle ments, filing evictions? If they just expect maintenance and rehab team in place. Asthe entire rental process from marketing, the tenant to send them money on the first with all aspects of Missy’s success in realshowing, qualifying prospective tenants, and don’t have a billing process, you might estate, she stresses the importance of sys-and the lease signings. want to keep looking! How much are late tems for managing properties. Missy’s Starting with a thorough screening, fees? Who gets them when they are col- team of qualified professionals are skilledwhich includes a background check, rental lected, and how do your receive general in rehabbing and maintaining single andand employment verification, and contact- accounting information? multi-families. They are responsible foring previous landlords. You should ask the What should I look for in a property preparing rentals for the market, dailyproperty management company for a copy management company? work orders and maintenance in additionof their leasing criteria. They should have It’s imperative that you do your due to total rehabs of newly-purchased proper-a rental procedure. In writing about how a diligence in your search for a property ties. Systems are implemented to facilitatepotential tenant is evaluated and accepted. management company to entrust your the process of ensuring that the properties Once a tenant is occupying the prop- real estate assets. Thoroughly research the are maintained and vacant-to-rental time iserty, the management company will be company’s history: length of time in busi- kept to a minimum. The maintenance teamresponsible for scheduling and completing ness, how many properties do they man- is available 24/7 for emergencies. Missy’smaintenance issues, tenant disputes or con- age, do they handle both single and multi- record of long-term tenants and reputationcerns. Your property manager should have families. Talk with past and present clients, of quality rentals speaks volumes for herexisting relationships with contractors and ask for a testimonial as to their experiences property management.Realty411Guide.com PAGE 42 • 2011 reWEALTHmag.com

5 Years of Worry-Free Reliable Rentals!• No Vacancies Call Today for a FREE Report on Selecting• No Maintenance Costs Reliable Rentals!• No Management Fees 513-275-1512• Already Rehabbed• Already Rented “Our Turn-Key homes are really that simple. We have a time-tested system to assure that you have worry-free rentals. Our repeat buyers are our proof! ” – Missy McCall Hammonds, CEO Do you have questions? Contact Missy directly: JustAskMissy@aol.comRetir eW ithRealEsta te.Biz

A Powerhouse Lineup of Top Industry Experts Presents the Insider’s Edge on The State of Real Estate 2011 The Norris Group’s award-winning event returns October 14, 2011 to the Nixon Library in Yorba Linda, California. We’ve booked an all-star team of accomplished industry specialists to discuss the current This year’s line up includes: Bruce Norris Vicki Golder Sara Stephens Sean O’Toole President Immediate Past President President Elect President The Norris Group National Assoc. of Realtors Appraisal Institute Foreclosure Radar Eric Janszen Doug Duncan Deb Still MVT PRODUCTIONS Economist & Financial Chief Economist 2011/12 President Elect Analyst of iTulip Fannie Mae Mortgage Bankers Assoc. Beyond the great networking with like-minded real estate professionals, 100% of the proceeds go to I Survived Real EstateGOLD SPONSORS Coldwell Banker Pioneer Real Estate Inland Empire Investors Forum (IEIF) Tom Wilson Investments Las Brisas Escrow www.ISurvived2011.com or 951-780-5856

Question and Answer with... Kaaren Hall of uDirect IRA ServicesA their jobs and have a 401(k) rmed with a 16- to rollover, they typically Because a self-directed IRA year background in think the stock market is their lets you invest in anything real estate, property only option. Their investmentmanagement and mortgage advisor typically has no profit (except life insurance andlending, Kaaren Hall helps motive to tell them they can collectibles), there are hun-hundreds of individuals take invest elsewhere. But forcontrol of their retirement. those wise few who look out- dreds of possibilities.As president and founder of side the box, they find they panies looking for capital, promising a re-uDirect IRA Services, LLC, have a lot more power and turn. Self-directed investors find that pre-Hall educates and helps her control over their retirement cious metals are the right thing for them. Aclients invest in real estate money than they thought. self-directed IRA can purchase the bullionand alternative investments and we store it for them. There is a longusing their Individual Retirement Accounts. Q: From your experience, what is the list of investment options on our website atHall believes so strongly in the education most popular type of IRA, the Roth or wwwuDirectIRA.com.aspect of her business that the busy mother the Traditional?of two travels hundreds of miles through- A: What I observe at uDirect IRA Services Q: Can you tell us about the most cre-out Southern California to attend real es- is that most people have a traditional IRA. ative self-direction transaction thattate club meetings and events. The reason for this is that most IRAs are you’ve come across? We recently asked Hall to enlighten rolled over from employer plans. These A: I think the most creative transaction wasreaders about the self direction process in employer plans are pre-tax plans (the ac- a husband and wife who each had a Tra-an effort to inspire them to be more proac- count holder took a tax deduction for mak- ditional and a Roth IRA. They bought ative about their own retirement. ing the contribution) so when they rollover piece of property using all four accounts! their funds, they find a similar account. Husbands and wives are typically disal-Question: Why is it such an exciting time The second most common type of account lowed to each other, but as long as theyto self-direct your retirement? is the Roth. People love the Roth IRA be- close concurrently, they can invest togetherAnswer: Well if you ask me, it’s always an cause the gains are tax-free for life. You using IRA funds. It’s not just the fact thatexciting time to self-direct your IRA if you can always convert pre-tax accounts to there were four accounts involved (andlike being responsible for your own future. Roth, by the way. In fact, in 2010 an act therefore 4 wires to escrow) but it’s thatRight now is especially exciting because of called T.I.P.R.A. created a rule that you can they were also using a land trust. At onethe tremendous opportunities in the mar- convert regardless of your income. When it point, the couple realized that the four ac-ketplace. Even economic down-turns cre- comes to the Roth there is, however, a cap counts were cumbersome and decided toate prosperity, and I see that with uDirect on how much you can earn to contribute. convert the pre-tax accounts to a Roth.account holders. Because a self-directed These rules are found on the IRS website In order to do this the asset had to beIRA lets you invest in anything (except life and you can always ask your tax profes- valuated, and then it could be converted.insurance and collectibles), there are hun- sional about what type of account best suits So now their two accounts share a piecedreds of possibilities. your tax strategy. of real estate through a land trust through their self-directed IRA. Their proceeds areQ: Do you still come across people who Q: Besides real estate, what are some tax-free for life.are not aware of self direction? popular alternative investments?A: I do, all the time! It amazes me that after A: Well real estate really is the most popu- Q. Do you have clients around the coun-35 plus years so many people (even sophis- lar investment. Real estate comes in all try or mostly in Southern California?ticated investors) do not know about self- sorts of forms. There’s single-family hous- uDirect IRA Services account holders aredirected investing! I call it the “best-kept ing, apartments and commercial property. primarily in Southern California but wesecret,” but of course, it’s no secret at all. Some people like investing their retirement have clients from every state. I do a lot ofJust visit www.IRS.gov Pub 590, which funds in raw land and some in passive real speaking in Los Angeles, Orange and Santalks about IRA guidelines and goes over estate trusts (REITS). Still others will take Diego counties and so most of our clientsthe rules. I think it’s because most people their IRA and use it to lend money to real come from these areas. No matter whatinvest passively. That is, they have a job estate deals. Some like investing in real state (or country) a person lives in, if theyand put money in a 401(k) and don’t think estate options. Aside from these kinds of pay U.S. taxes, they are eligible for an IRAabout it. Those funds are usually invested investments, I see people invest in private and we can help them self-direct their fundsin the stock market. So, when people leave stock. There are hundreds of private com- into the investments of their choice.Realty411Guide.com PAGE 45 • 2011 reWEALTHmag.com

The Business of Real Estate Crystal Han from 360 Investments Reveals How to Get the Most Bang for Your BuckD oes more marketing really mark attorney to make sure your branded links and banners, Facebook Ads, and much equal more money in the name, slogan, and/or logo are available to more to choose from. Determine what fits real estate industry? Real register. Also, start to check out domains your budget and remember that repetition estate buying, selling, list- with the brand name to make sure “.com” is key, meaning repeating your advertising ing, lending, investing, or “.net” is available as well. Your brand methods at least 5 to 7 times before seeingholding, wholesaling, flipping, rehabbing, should symbolize your business iden- the fruits of its labor. Our company under-developing, inspecting, appraising, insur- tity and follow your mission. Market your stands the importance of advertising anding, and closing are all considered a busi- brand through business cards, promotional therefore continues to spend advertisingness; and to make it a profitable business, products, brochures, stationary, car magnet dollars in magazines like Realty411, emailone must focus their time, energy, efforts and/or car wraps, stickers, banners, and campaigns/eblasts, and mailers. Title rep-and resources marketing its business’ prod- anything else you can think of. resentatives are a great source to get farm-ucts and/or services to its target audience. Our company name, 360 Investments® ing list/packages with tailored informationYou must first consider what your business was created to represent an all encom- to target your mailing campaigns such asis offering to its customers and figure out passing real estate investment company letters to all out of state owners who maywhat will set you apart from the competi- that provides all the tools, research, op- be distressed and motivated to seller theirtion. The most important element is de- portunities, education, and contact sources property.termining your mission and to create your to our selective client investors accepted Online. With the internet accessible to mostunique mission statement that will reflect into our circle. Our company name and people these days, it has become increasingwho you are, what you do, and why you do logo has been registered with the US popular to use online marketing strategies.it. There are so many marketing strategies Patent and Trade Mark Office so no First and foremost, your business shouldyou can utilize in your real estate business other similar names or logos can be have a website with information about yourand the more you do, the more money will used. We spent a lot of money pro- company, product, services, experience,flow to you. tect- ing our marks and we consider background, and contact information.Branding. Creating a brand that it a wise investment. Your web pages should include codedyour customers recognize Advertising. There are key terms for proper search engine optimi-with a name, slogan many ways to advertise zation (SEO) so that potential customersand/or logo is a your business to reach can find your website based on the wordsgreat tool many its target audience searched. Send out content rich newslet-companies use such as TV/Cable, ters to keep them up to date with news,to separate Magazines, News- events, announcements, and information.themselves paper, Radio, Another popular approach is to create afrom their Emailing Cam- blog that uses key terms in its title entrycompetition. paigns, Mailers, and have important words in the descriptionIt is also highly Postcards, Letter following the title. Social media networksrecommended Campaigns, Door such as Twitter, Facebook, LinkedIn, andto consult with Hangers, Google YouTube are great tools you can use toa patent and trade- Ad words, sponsored Continued on pg. 54Realty411Guide.com PAGE 46 • 2011 reWEALTHmag.com

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Cash Flow in Jackson In 2007, A job loss transformed Erica Reynolds into a real estate investor. Now, she’s creating cash flow for others F or most people, a job lay Ongoing housing projects with big names like Habitat for Hu- off would be devastating, manity, Oprah Winfrey, and Kevin Garnett have made a strong im- but for Erica Reynolds pact in the area. One of the most promising sectors for Jackson is losing her job was the motiva- the automobile industry. In fact, Nissan Motor Company employs tion she needed to start invest- more than 5,300 workers. ing. Reynolds also likes to invest in areas where there is a commit- “I hated that someone else ment to higher learning. “Jackson is home to many top schools had control of my life and fi- and universities, such as Jackson State University, University of nances. In addition, I wanted to Mississippi Medical Center, Millsaps College and Belhaven Uni- create passive income,” she recalls. versity. Because Reynolds is based in Los Angeles, home of one of When asked what her personal real estate goals are, she replies the highest-priced markets in the nation, she decided to invest without missing a beat: “To help investors understand the impor- in other states tance of obtaining cash flow properties at this time.” If ever there “We live in one of the most expensive markets in the na- was a time, that time is now, Reynolds explains. “In the words of tion, that is why I own rentals long distance.” Reynolds says one of my favorite mentors, Warren Buffet: ‘Buy when the bears the ROI is “way better” in other states. “Cash flow is wonder- are giving them away.’” — by Linda Pliagas ful and properties are affordable.” To contact Erica Reynolds, please contact her via email at: When asked how she did it, she replies: “I got started by ericaontherise@yahoo.com or phone: 818-478-0737 developing a trustworthy team who could be my eyes while I am far away, working with a great property manager and “What I love about Ready to Invest in Mississippi is the fact Jackson, Mississippi? that property taxes We offer Great ROI on Affordable Rental Homes! are really low” Everything in place, Turnkey deals and light ﬁxers. Why Jackson? a man on the ground.” Since then, Reynolds, who describes 3 Growing Area herself as a buy-and-hold investor, has been managing her 3 Low Taxes investments from afar. For her, it has been a profitable move. “My experience has been great. Property management has 3 Great Rental Market been a big key factor,” she explains. 3 Affordable Properties Reynolds is now going beyond just buying assets for her- We oﬀer substantial savings because... self, she now also helps find properties for others. She has developed a loyal following and is garnishing a reputation We do not have a huge overhead. Sample Deal                among real estate groups as a strong proponent of out of state Personal Attention = Superior Results      investing. “ Financing is available with 50% down”         Although Reynolds has invested in many markets, includ-        ing Dallas and Indianapolis, currently she is excited about For information, contact:           Jackson, Miss. “It’s an excellent rental market. This market is very affordable,” she continues. “What I love about Mis- Erica Reynolds sissippi is that the property taxes are really low. Jackson is known as ‘the city of soul.’ The area has experienced steady 818-478-0737 growth in the rental market.”Realty411Guide.com PAGE 48 • 2011 reWEALTHmag.com

Leveraging Distressed Assets By Lori Greymont to be in line with the neigh-T borhood’s other distressed here’s a house on Vine homes. All distressed prop- Street in Atlanta. The erties have liens, usually tax homeowners default- liens, but sometimes water or ed and the bank fore- sewer liens. Factor those intoclosed. Then the property was your purchase price. Mostlisted at 80% of its value by on-line real estate sites can’tan agent specializing in REOs. help much with understand-The three-bedroom, one-bath ing property condition. Therehouse in a decent working-class is no substitute for feet on theneighborhood didn’t sell. So the ground, which leads us to….agent dropped the price. And 3. Build a Team. Becausedropped it again. Why wouldn’t you’ve concentrated your ef-the house sell? It was in good, forts, it’s a lot easier to findnot great, condition. The house someone willing to drive by adidn’t sell because no one in property and peek in the win-the neighborhood could get a dows. This banking meltdownloan. Finally, the asset manager has allowed the creation ofhad to get the distressed prop- many support businesses forerty off the books. He slashed the banks to look at, price andthe asking price to $10,000 and manage their own distressedlisted it with other similarly assets. You can search the inter-priced houses, and then sent the net for “Distressed Asset Man-bargain list to investors. agement”, “BPO’s”, “Drive- Distressed assets can be huge By Services” or a host of othermoney makers for savvy inves- words and pull resources thattors—as long as they follow are your feet and eyes on thethe five principles for convert- ground. Plug into the existinging empty properties into cash- network of professionals andproducers. within a day or less you will know if you found a gem or1. Concentrate Efforts. De- not. And when you work withcide in advance which areas of someone you like, call themthe country you’d like to invest back for repeat business. Rela-in. You’ll find the best bargains tionships are also key.in the mid-west and southeast. 4. Sell Quickly. There areFocus on a few cities and learn more properties on the marketas much as you can about them. than anyone can buy so how doOther investors are a great help you sell your property aheadwith this investigation. Also of the neighbor? Finance yourread local blogs. What are buyer. There are many creativeproperties renting for? What is financing methods that youthe inventory? can employ that offer you con-2. Do Due Diligence. Once you trol and a great return. If yourhave focused on a few areas, buyer can be approved by you,start perusing lists of distressed they can make a decision inassets. You’ll want the newest days and be in the home in lesshouse you can find AND with than a week or two. This helpsthe least liens. Make sure you preserve your asset from van-adjust the offer price on this Continued on pg. 59Realty411Guide.com PAGE 49 • 2011 reWEALTHmag.com

7 Deadly and Common Mistakes to Avoid When You Carry PaperO wner financing is quickly gaining they get top dollar for their paper, by using popularity as a way for sellers to her expertise to: sell property for top dollar without •engineer the transaction intelligently your property if you don’t ask for a downrelying on the bank financing that is avail- •make sure the note documents are ac- payment? You can make owning a homeable (or not) to prospective buyers. curate and complete cheaper than renting if you want to! Unfortunately, most sellers (and the pro- •fully underwrite the buyer It’s OK with me if you take a smallfessionals who serve them) don’t seem to down payment to sell quickly for the pricehave a basic understanding of the second- The following is an excerpt from her you want . . . just don’t be offended whenary note market, which profoundly affects book, “Seller Financing on Steroids”. I offer you a small price for your note, orthe paper asset (the note) they are left hold- When sellers are going to become the bank I tell you I can only buy a partial, or that Iing. on their own property, they need to learn to can’t buy it at all. Sadly, this often equates into unneces- think like a bank, or hire their own personal Why? Because the risk of default is sosary financial losses when the seller/note underwriter. high. If things got tough, it would be tooholder goes to sell all or part of their note easy for the buyer to just walk away, be-to raise cash. Deadly Mistake #1: Take a small down cause they don’t have enough ‘skin in the Seller financing helps sellers get top dol- payment, or none at all game’.lar for their property, Dawn makes sure Isn’t it amazing the price you can get for And actually, if they can no longer af-Realty411Guide.com PAGE 50 • 2011 reWEALTHmag.com

ford the payments, then it would be won- There have been a few times I’ve been to Milk of Magnesia? Don’t you want toderful if they would just walk away. But able to offer a really good price for a note, leave a good asset to your heirs and ben-normally, they don’t. They wait for you to just to have the deal fall apart because the eficiaries?foreclose on them. In California that can note holders couldn’t come up with infor- Putting your transaction together in atake anywhere from 5-18 months, in other mation like social security numbers for the way that will make your paper (note) valu-states it can take 2-3 years . . . ouch. Payors. able on the secondary market, will auto- Sure, you’ll get the property back, but The investors out there that will pay the matically assure you that you’ve placedafter how many missed payments, and how most for your note (ask you to take the yourself in the most powerful positionmuch in legal fees? And will the property smallest discount) will want you to have a possible, no matter what happens down thebe trashed, and/or will the market be even Social Security number on the buyers (note road. It provides the most flexibility andsofter when you finally have possession Payors), and they’ll want their FICOs to be potential liquidity long term.again? 620 or above. If the down payment is small, and the Accepting a small down payment all There are note buyers out there that will buyer’s credit scores are low, then I highlytoo often translates into financial loss . . . buy your note even if you don’t have the recommend that you consider using thethere’s just not enough of a financial buf- buyer’s SS#, but they’ll probably be offer- Title Holding (Land) Trust, but only if youfer if something goes sideways. It’s like ing you less for your note. don’t plan on cashing out. You can’t sell asitting on a porcupine and wondering why And even a great note by all other ac- beneficial interest in a trust the same wayyou’re not feeling so cushy and cozy. counts will be hard to sell if the Payors’ you can sell a note). Take the largest down payment you can credit scores are low. It’s often difficult toget. Getting a 20% down payment will sell a note where the FICOs are coming in Deadly Mistake #3: Lose the originalgreatly reduce the statistical likelihood of below 600. notedefault (and make your note much more Why? Because, statistically speaking, Deadly Mistake #4: Make the interestvaluable). Remember when that’s what it the lower the credit score, the greater the rate on the note nice and lowtook to buy a property? A 10% down pay- chances that the buyer (note payor) will Deadly Mistake #5: Create a short-termment is usually acceptable for an owner oc- default. ballooncupied single family residence (O/O SFR). Have the buyer provide their SS# by Deadly Mistake #6: Fail to include a A down payment creates Protective Eq- filling out a credit application and signing provision for late payments and a due onuity. Protective equity protects the seller it, run credit, and if it doesn’t come back sale clause to your note(note holder) from financial loss if the buy- above 620, run from the deal, unless...there Deadly Mistake #7: Don’t keep a care-er (note payor) defaults. are always ways to compensate for the risk ful accounting of the note payments you The larger the down payment, the greater of lending (your equity) to a buyer with receivethe instant equity a buyer has. Think of a poor credit, but still, it’s a tough conversa-down payment as the layer of cream on a tion with credit scores in the 500s. A 32-page preview of “Seller Financing onfresh cup of milk. The thicker the layer of If you’re going to do the deal anyway, Steroids” is available as a free downloadcream, the richer and tastier it is. be sure to take a larger-than-average down at www.NoteQueen.com. You can also buy If you get a 20% down payment or more, payment, and be willing to season your the full ebook for $9.97, or order the pa-then you’ll have a note that’s worth holding note for a year or more. If you hire me as perback from Amazon for $14.97.or selling. It’ll be rich and tasty, and I’ll your personal underwriting department, Iwant to have it for dessert, sweetening up will make sure you minimize risk, and have Those interested in learning “The Dancemy portfolio of real estate notes. a note I can buy at the soonest possible mo- Between Property and Paper” will want to If you’re going to take a small down payment for the highest possible price. consider joining Owner Financing Club, ament, you’ll want to find a way to reduce or And even if you’re not thinking of sell- virtual real estate investment club focusedeliminate your exposure to foreclosure (or ing your note, don’t you want a strong in- on owner financing and notes:the risk that a note buyer will have if they vestment that doesn’t have you addicted www.OwnerFinancingClub.com.buy your note). Perhaps you’ll want to create two notesinstead of one, or use the Title HoldingLand Trust to avoid foreclosure altogeth- Owner Financing Cluber. There are some very innovative waysto structure transactions to maximize both www.NoteQueen.comreal and paper assets. Sophisticated inves-tors are using these strategies every day.Deadly Mistake #2: Don’t ask for thebuyer’s SS# and don’t run a credit re-port, (or, if you’ve actually done these (626)470-3477things, try to lose the credit applicationand report so it’s unavailable to give a INVEST IN NOTESprospective note buyer).Realty411Guide.com PAGE 51 • 2011 reWEALTHmag.com

InvestIndy.com addsNEW Spin to PassiveReal Estate InvestingI nvestIndy.com is a essary to make an long we have held it, rent value, etc. Typi- real estate invest- informed decision. cally our terms range from 33% to 50% ment firm focused on Each investment has down payment, 8% to 9% interest, 30-year providing investors complete accounting amortization with a 10 year balloon pay-alternative methods for of where the money ment. Again, each property and situation ispurchasing real estate. Our is allocated and how different, so please check with us regardingaim is to help our clients the money is utilized. available terms for that property. (Note:utilize retirement assets We also work directly We are not a bank or public lender and willto act as “cash buyers” in with the client’s IRA only owner finance our own properties.)this market. We believe real estate inves- custodian or advisor and assist with all thetors make money at the time of purchase, necessary paperwork to ensure their invest-so we work hard to identify the best op- ment is as trouble-free as possible.portunities for our clients. Ultimately, we Retirement Accelerator Programbelieve smart real estate investing can pro- Owner Financing Opportunities for If you really want to accelerate your invest-vide greater safety with higher returns than Leverage of Your Investment Capital ing, check out our Retirement Acceleratoralternatives, and clients with retirement ac- Ok...you probably already realize that real Program. The Accelerator Program is acounts need this important diversification estate is an excellent place to invest your simple concept that addresses many of ourtool. We seek appreciation opportunities money. What has been holding you back? client’s primary objectives: “I want freewith no debt and income properties with a In some cases it may be a lack of experi- & clear real estate as soon as possible.”cautious use of debt. ence, or time to commit... but for most, it By leveraging our properties with owner We design real estate investment strat- is a lack of capital to start with. Frankly, financing and then applying all the positiveegies for our clients who utilize either banks are not at all interested in loaning for cash flow against the outstanding notes....self-directed retirement funds, or personal investment properties. It is hard enough to the properties will essentially pay fordiscretionary funds. We are proud that we get them to loan on a primary residence, let themselves and will typically be free andare on the forefront of what we believe is a alone an investment property. clear within ten years. Much faster in somecoming boom in retirement investing into So how can you leverage your available cases. You can view a short presentation onreal estate projects. We target double digit capital to take advantage of this once in a The Retirement Accelerator Program at:annualized returns for client portfolios. Ad- lifetime real estate opportunity? www.RetirementAP.comditionally, the transparency of real estateinvesting allows clients to “see, touch, and InvestIndy.com has the answer... Learn More About Our Companiesfeel” their investments and know where OWNER FINANCING!! Dorfman Property Management:their money is invested. Because we own our properties outright, For over 35 years, Dorfman Property Man- we have the ability to sell our properties agement has been Indianapolis’s premierInvestIndy.com designs the investments with built-in owner financing. Most of the property management company. Havingoffered to clients into three categories: properties we sell to investors today are worked with thousands of properties and1. Wealth Building - Ideal for the majority from our own portfolio that we have held property owners over the years, we fullyof our clients who are looking for substan- for years. Not only does that give us a solid understand the subtle nuances of the Indytial growth in their portfolio. track record of documented performance, market, and work diligently to get your2. Wealth/Income - The generation of both it allows us to sell off properties that we properties leased FAST and with qualityincome and cash payments during the term; have already depreciated creating fantastic tenants. Contact us at 317-507-4323.primary focus is on the larger gains at the opportunities for new investors. They get a InvestIndy.com:end of the project term. seasoned cash flow property, we get a solid Invest Indy specializes in creating turnkey3. Income - Provides a steady cash flow performing note and mortgage on a prop- investing opportunities for local and na-stream. Perfect for investors entering the erty that we are confident in the value of. tional investors looking to take a more pas-retirement phase. So how does it work? It is simple really. sive role in the process. Our experience al- Our clients are the sole director of their Find a property on our website that you lows our clients to leverage our knowledgecapital. Invest Indy performs a thorough are interested in and check out the full de- in property acquisition, rehabilitation, ten-due diligence process on each investment. tail section. Each property has slightly dif- anting, and property management. ContactOur clients have all the information nec- ferent terms depending upon its value, how us at 317-507-4323.Realty411Guide.com PAGE 52 • 2011 reWEALTHmag.com

InvestIndy.com & Dorfman Property Management Have Combined Forces to Deliver… “The Most Revolutionary Approach To Turnkey Real Estate Investing... Cashflow Properties With Owner Financing” Real Estate Investors Finally Catch a Break! Long Time Real Estate Investors Are Looking To Refresh Their Current Portfolio… Offering Up Unprecedented Opportunities 943 W. 34th St, IndyFor Other Investors Looking For Cashflow Property. 3 bed / 1 bath / 866 sq ft Built 1900Discover how our Investor Program can help you... Currently Rented $650/mo. Passively Invest in One of the Best Real Estate Same Tenant since 2009 Markets for Cashflow of Our Lifetimes Partner with Local Indianapolis Investor and Property Management Specialists who have over 35 Years Property Historical Cashflow Details (7yr Avg.): Experience in the market. In Portfolio Since 2003 Annual Gross Income: $7,675 Purchase “Seasoned Properties” with Solid Rental His- Annual Taxes: $825 tories & Maintenance Programs Annual Insurance: $500 Annual Vacancy / Maintenance: $1078 Avoid the Hassles of Bank Financing Annual Management Fee: $748 Average Annual Net Income: $4,524 Use Your Self-Directed IRA to Fund the Down OWNER FINANCING OPTION Payment with our Non-Recourse Owner Financing. Investor Purchase Price: $40,000InvestIndy.com Required Down Payment (30%): $12,000Invest Indy specializes in creating turnkey investing opportuni- Projected Closing Costs $800ties for Local and National Investors who are looking to take a Cash Required: $12,800more passive role in the process.Our extensive experience allows our ASK ABOUT OUR Owner Financing: $28,000clients to leverage our knowledge in Terms: 30yr Fixed @ 8% (10yr balloon)property acquisition, rehabilitation, $2000 Monthly P&I Payment: $205tenanting, and property management. FINDERS FEE Annual P&I Payment $2460 PROGRAM Projected Adjusted Net Income: $2,064Dorfman Property Management Projected Cash on Cash Return: 16.08%*For over 35 years, Dorfman PropertyManagement has been Indianapoliss Premier Property Man- *Projected Cash on Cash Returnagement Company. Having worked with thousands of proper-ties and property owners over the years, we fully understand the $12,800 Gets You A Free & Clearsubtle nuances of the Indy market, and work diligently to getyour properties leased FAST and with Quality Tenants. $40,000 Rental Property in 8.58 yearsContact us today at 317-507-4323 Under Retirement Accelerator Program… Generating approx. $4,500 Net Income For Life www.InvestIndy.com 317-507-4323 317-507-4323 (for more available properties) CONTACT JEFF ADER FOR DETAILS & QUALIFICATIONS (317) 507-4323 (Additional Properties Also Available)

How to Protect More Marketing, pg. 46 like magazines, newspapers, and blogs. Become a special- market and advertise your busi- ist in your industry so writers ness. I highly suggest that you will reach out to you for yourYour Net Worth customize your Twitter page opinions and comments which with your brand, create a Face- will become published editori- book Fan Page for your busi- als. Make sure to keep all of ness, develop your own Linke- your featured press materialsO dIn Group, and also customize framed in your office, displayed ne of the nies, and domestic your own YouTube Channel. on your website, and added to most det- corporations. Ad- After setting up these social your press kit. rimental ditionally, he has media pages, it’s important to Networking. Network- mistakes formed numerous remain active on these accounts ing is a form of marketing.an investor can make offshore corpo- by posting, uploading, inviting, Attend events and meetings,is not having adequate rations, offshore connecting, commenting, mes- join groups and organizations,legal protection. trust, and private saging, announcing, liking, or become affiliates to refer cus-Mathew Mullhofer, an offshore bank ac- whatever is necessary to keep tomers to other businesses, get your marketing efforts ongoing more training and education Mathew Mullhofer, an investor and California using these channels. Best of and network with fellow stu- all, these social media market- dents, mentors, trainers, and attorney, says it’s important to be pro-active ing techniques are FREE but coaches, create relationships, to maximize your legal protection. time consuming. If you do offer reward programs for re- not have time to do it yourself, ferrals and market everywhereinvestor and attorney located in counts. I suggest you hire a person to you go. Make sure to giveOrange County, Calif., says it’s Mr. Mullhofer is also experi- do it for you and keep it go- your business cards out. Moreimportant for investors to be enced in representing taxpayers ing. Some advance techniques importantly, be sure to collectpro-active for maximum pro- in collection efforts by the Inter- include developing mobile others’ contact information andtection. Asset protection is very nal Revenue Service, Franchise applications your customers confirm their phone numbermuch like health insurance, one Tax Board, and State Board can download to their mobile and email address so you canneeds to have it in place before of Equalization. When asked devices. For instance, we are follow up with them. Followdisaster strikes. “You can’t set about the different types of le- creating a deal analyzer so that up is the key to developing thea trust or LLC if you already gal protection that can be set our users can quickly analyze a relationship. I have given outhave a judgment against you,” up, Mr. Mullhofer says that the deal to figure out cash flow and thousands of business cardshe warns. “State and federal Family Limited Partnership has return on investment. and rarely do I receive a followlaw prohibits any individual been around for many years in Public Relations. Your busi- up call or email so set yourselffrom transferring their assets California, however, most indi- ness communication and image apart by doing what others careafter a lawsuit has been filed viduals may recognize the Lim- to the public can be delivered not to do.against them. The prudent busi- ited Liability Company (LLC) through a publicist and/or writ- I hope that you will findness person must plan prior to more often. The LLC was only ten through a well composed some of these marketing strat-any potential lawsuit in order recently enacted by Governor press release and/or press kit. egies useful in your real estateto legally protect the assets that Pete Wilson, however the LLC This press release can be pub- business. Make sure to trackthey have worked so very hard continues to be a valuable asset lished and picked up by major your marketing efforts to knowto acquire.” protection tool. A Land Trust is journalists who will write about which strategies are producing Another common mistake also used in conjunction with your company and even contact the best results. And remem-that investors make, according an LLC and an LP for added you for a formal interview. To ber: More Marketing = Moreto Mr. Mullhofer is that “they protection. be written up in articles is a Money!enter into business deals with- Ideally, according to Mr. great way to maximize yourout written documents, which Mullhofer, each property marketing efforts. Another way To learn from Crystal Han,gives entrepreneurs no legal should be in a separate legal is to write your own articles to be sure to visit her website at:protection or recourse should entity for maximum protection. be submitted in feature print www.360investments.nettheir partners not agree or keep An investor’s protection plantheir word.” will depend on the number of Mr. Mullhofer has been prac-ticing law in California for 13years. He has extensive experi- properties they have and other individual needs. For more information on GreenBlasts.com We design & send your email or eFax Realty411 Print • Online • Networkence in the area of estate plan- how investors can maximize to any demographic, industry or city www.realty411guide.com | Vol. 3 • No. 2 • 2010 A Resource Guide for Investors Tips for Long-Distance LANDLORDINGning and asset protection, which Current Investor List is Over 500,000 Turn-Key Rentals their legal protection and tax Around the Nation Cash Flow from the Comfort of Home Mathew Owens, CPA, owner of OCG PROPERTIES Buys & Rehabs Instant & Trackable - Magazine Discount! Rentals in Tennesseeincludes the formation of trust, and estate planning, please con- from Redondo Beach Get the Deals DONE Learn Creative Real Estate Techniques from Dave Lindahl, Dolf de Roos, Bruce Norris, Bill Gatten & more! Look Inside FREE 310.499.9545 | info@realty411guide.com Celebrating the Largest Wealth Issue with More Pages &wills, family limited partner- Reports! Opportunities than Ever! tact Mr. Mullhofer’s law office photo by Sam Greenships, limited liability compa- today at: (877) 246-2770Realty411Guide.com PAGE 54 • 2011 reWEALTHmag.com

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you at my Wholesale Training Camp,” said Invest The Art of a Flip pg. 20 Sensei, “but you would be more effective was learning from a book & DVD, and I if you took that training camp to build a had another kickboxer in the ring with a solid foundation, and then deploy out in in YOU trainer, who do you think is going to be the field along side of me to put some heat the dominant fighter? And that’s where we in the streets. Being action oriented, armed say: You know what? If you really want to with the effective tactics, knocking down be an investor, then you need to be trained obstacles, and giving it your all will open Sensei style.” the doors of opportunity.” Wealth Wealth Real Estate th A th A e Pu Sp blish e Pu Sp blish ec ec ia ia l Ed s of l Ed s of er er iti Realt iti Realt on on At Black Belt Investors, you will learn fro y411 fro y411 And don’t worry... if you’re too tired to m m Vol. 1 • No. 1 • 2010 Vol. 1 • No. 1 • 2010 Shares His Secrets! Sensei’s wholesale system of “Find It, go through the door, then Sensei will push Shares His Secrets! Bind It and Assign It™.” In the Find It you through. stage you will learn how to guerilla market For more information, please visit: to find cash buyers, distressed sellers and www.BlackBeltInvestors.com properties and draft a “power team” that will help you move to the next level. Once Serving the Needs of Accredited Investors - INSIDE: Information to Grow and Maintain Your Wealth Serving the Needs of Accredited Investors - INSIDE: Information to Grow and Maintain Your Wealth Pasadena-Burbank 16 Words of Wisdom from Masters of Real Estate 19 Maverick Investor Group Reveals the Next BIG Thing 35 Bruce Norris Prepares for Annual “I Survived Real Estate” Charity you have a motivated seller you will then Subscribers are Invited to Our VIP Networking Events & Receive “POCKET” Deals by Email move to the next stage of Bind It, and here you will learn how to research making offer the sellers can’t refuse, negotiations CashFlow meetup group and how to use Sensei’s simple one-page contract. Now that the property is secured 2 Covers, 1 Mission: The Pasadena Cashflow by a contract, you will move to the third Masters Group welcomes To GROW Your Wealth stage of Assign It. Here you’ll learn how all levels of investors. please circle cover choice: to inexpensively market the properties so We play Robert Kiyosaki’s you can flip it within hours and get paid! Cashflow boardgame each Realty411 RE WEALTH Sitting on your hands and hoping that month to learn the skills you will become a successful investor is required for acquiring 2 Years for Only $36 not a course of action. Get off your hands wealth. I personally look and take action now! You owe it to your- forward to connecting self to become successful. I suggest to get with you at one of our _____________________________________ the training from an experienced investor upcoming events. Name as it appears on credit card that can get you in the right mindset, armed Doug Carver, Co-organizer with the weapons to take down houses and _____________________________________ build your real estate cash machine. “On- For Information, Call Credit Card # (visa, mc, amex) site mentoring” is a core reason for the 626.524.2712 success of Sensei’s students. “I can teach _____________________________________ Expiration Date _____________________________________ CVC code MATTHEW C. MULLHOFER, Attorney at Law In good times and in tough times Signature Required _____________________________________ WE ARE YOUR ADVOCATES Mailing Address A Professional Law Corporation 2107 N. Broadway Ste. 103, Santa Ana, CA 92706 Ph: (714)827-9955 Fax: (714)827-9966 _____________________________________ PROFESSIONAL LEGAL SERVICES City State Zip • Asset Protection • Wills & Trusts • Lawsuit Protection • Real Estate • Tax & Estate Planning • Short Sales _____________________________________ • High Net Worth • Foreclosure & Bankruptcy Email Address or Phone (to join our network) Go Green! Scan and send this form directly to us: Call for a FREE Consultation Fax to: 310.499.9545 info@realty411guide.com Never Miss an Issue! 714-827-9955 http://www.protectmyassets.comRealty411Guide.com PAGE 56 • 2011 reWEALTHmag.com

AZ Property Tour, pg. 28multifamily dwell- Robert Kiyosaki’s CA$HFLOW Board Gamesings and commer-cial buildings.”Barker adds, “Wehave a couple of per-sonal teams who han- Mike Barker by Douglas Carver Track.” Only by acquiring anddle every aspect of the investing in assets do you slowly Winvestment business.” His team includes hen I think back to my discover what it takes to generatebird dogs, rehabbers, property managers, decision to become a the passive income necessary tobrokers and everything in between. serious real estate investor, I make it into the “Fast Track.” AMERICANS: FLIP TO almost always return to the day At the heart of the game is mak- AUSTRALIAN INVESTORS! that I first had the opportunity ing players learn how to actively One unique program that REO Bailout to read Robert Kiyosaki’s book manage their money by fillingoffers that no other company can match is “Rich Dad, Poor Dad.” If you Doug Carver out and creating their own finan-the is the “Flip to Australians” exit strat- have not read this book, I would cial statement. Players chooseegy. This means that in addition to secur- highly recommend you read it... and read it from a variety of starting careers (Trucking a deeply discounted property, rehab again! It literally opened my eyes and ex- Driver, Mechanic, Lawyer, Airline Pilot,team, and property manager, REO Bail- plained how money works — giving me the etc.) and fill out their financial statementsout will also will procure an Australian true facts about money that the rich teach appropriately. As they earn money, payinvestor to buy the inventory purchased their children and that the middle-class do bills and invest in different deals, they du-by their clients. not. While the book opened my eyes to tifully log each change to their financial Barker explains: “This particular pro- everything I was doing wrong with my statements and begin to understand andgram has worked extremely well this year, finances, it wasn’t until 5 years control how money flows throughso far we have completed over 200 sales later when I started playing their lives.to our Australian friends. In a nut shell we Robert Kiyosaki’s Cashflow Literally thousands ofbuy the property, rehab, put in qualified 101 board game that I ac- Cashflow game clubs existrenters and sell the completed product to tually began to take action around the world. These areour friends abroad. We have some of our and implement the ideas groups of “like-minded” in-hardest workers on the ground in Aus- and apply the concepts laid dividuals who have typicallytralia and they have done a fabulous job out in the “Rich Dad, Poor read Mr. Kiyosaki’s book andselling a piece of the American Dream to Dad” book. I like to say that get together regularly to playour counterparts. This is a win win for all the “Rich Dad” book puts the his board games to develop theirinvolved.” knowledge to create financial free- skills for investing and money man- REO Bailout’s “Flip to Australians” dom in your head, but playing the Cashflow agement. Besides creating a fun environ-program has proven to be extremely game actually puts the knowledge to create ment to learn life changing financial skills,popular, according to Barker. “We are on financial freedom in your heart. these clubs offer opportunities to createboard to begin selling 50 or more proper- You may ask “What is the Cashflow lasting friendships, learn about variousties a month to Australian investors,” he 101 board game?” Well, the best way to investment opportunities, and build a net-explains, adding “And they have just put a describe it is Monopoly on steroids. Like work of contacts who can support you inteam on the ground in Singapore.” Monopoly it is a board game that involves securing your financial future. Undoubtedly, in today’s market, cash investing, but unlike Monopoly it serves It was because of the amazing peopleis king, but for those who may fall a bit as a powerful tool for learning basic finan- that I met at those first Cashflow game clubshort, REO Bailout has financing options cial strategies and accounting principles. events that I decided to start my own clubsavailable with their preferred banking, Simply stated, Cashflow 101 is the first in in Burbank and Pasadena, Calif., over fiveprivate and hard money lenders. They, in a series of games created by Mr. Kiyosaki years ago. So go ahead and check out aturn, can provide investors with 70% to to reinforce the information and financial local Cashflow club in your area. You can80% leverage opportunities. principles that he teaches in his books. go to www.meetup.com where many of the While Barker is not quitting his day In the board game, you play a rat that clubs (including mine) are listed, and youjob anytime soon (law enforcement is travels around two unique tracks. At the be- can join free. If you are like me, the boardhis personal passion), his annual salary ginning of the game you start in the small game will transform your “money mind-is similar to his monthly rental cash flow. inner circle track called the “Rat Race.” set,” whether you are a newcomer looking“This market right now is a no brainer,” You goal is to escape the “Rat Race” and to get out of the “Rate Race,” or seasonedhe confides. “I just purchased 47 condos, make it to the larger outer track called the investor seeking a faster path to financialall fully rented with no rehab needed. I am “Fast Track.” Starting in the “Rat Race,” freedom.also looking at an additional 40, just these you quickly discover that simply earningtwo acquisitions alone will gross $55,000 a “salary” will not allow you to create fi- To contact Doug Carver, please email hima month. Not too shabby for a full-time nancial freedom and escape to the “Fast directly at: srm.inc@earlthinlink.netSWAT officer!”Realty411Guide.com PAGE 57 • 2011 reWEALTHmag.com

Real Recovery Starts with Investor Lending Changes by Tom Wilson and sustainable home tors need to move forward? I believe theT sales environment and following three-year changes in loan poli- his is the best window continuum. cies: of opportunity of our And as if this situa- •Increase the amount of available loans to lifetime to procure tion were not enough, qualified investors to an unlimited numberreal estate for long-term hold. to further amplify the for three years (as it was in the past)Unfortunately, the pendulum problem, only 33% of •Make the 203K loan program more avail-at capital hill and Wall Street sellers and those losing able to investors (loans that include fundsoverreacted to the short-term their homes are willing for improvements)speculative investors at the or able to repurchase. •Allow “simple assumptions” of any Fan-height of the bubble and has Tom Wilson That’s right, 67% of nie, Freddie, or FHA loansswung too far back to conser- former homeown- •Allow equal access to all government-vative terms for investor loans, ers have moved from owned inventory for investor and owner-thus impeding the ability of investors to get buying tohomes off the market and occupied. renting.We This is not just a problem for investors have anwho want to further build their retirement escalatingportfolios and reduce their personal depen- p r o b l e mdence on the country’s overburdened social of unsoldprograms. It is also a serious detriment to homes sit-this country’s economic need to acceler- ting on theate the process of rectifying our debt crisis market. Iffrom underwater real estate. owner oc- Currently 25% of the nation’s and 35% c u p a n t sof California’s home loans are upside down cannot ab- From left to right: Sean O’Toole, Tom Wilson, Dr. Doug Duncan, Bruce Norris,in spite of over three years of a high rate of sorb two- Howard Blum at Fannie Mae meeting in Washington DC May 25, 2011foreclosure sales. And yet the rate of fore- thirds ofclosure sales is less that a quarter of the rate the hous-that they should be relative to the rate of ing inventory, who will? Clearly the only occupants alikedelinquencies. This has resulted in a “shad- ones who can do that are investors. Not only •Accept more reasonable cash reserves re-ow housing inventory” of 42 months at the do they absorb foreclosure inventory and quirementscurrent absorption rates. So far. As a nation provide housing, but by using their capital What do lenders have to lose by theseit appears that if something doesn’t change for improvements they also remove blight changes? Very little. The long term inves-it will take 4-7 years to get to a more normal from neighborhoods, thereby improving tor delinquency rate is no higher than that property values of owner occupants and it is actually lower and local tax rev- for FHA loans. Current and traditional in- enue. If more investors are not speculators; they add value vestor financing and experience to the process of turning is made available, empty homes into family homes. Finally, the absorption rate many of the changes that investors seek are will accelerate and roll-backs to the policies in place before with it the end of loosening of lending policies fueled pur- our real estate cri- chases by under-qualified buyers. Investors sis becomes more don’t just want, they know these changes tangible. Histori- are essential to the recovery of the real es- cally, the real estate market in the U.S. tate economy has To promote these ideas with the policy always played a makers at Fannie Mae and HUD, I re- leading roll in our cently joined Howard Blum, President of national recovery The Financial News and Information Ser- Source: Corelogic, ForeclosureRadar.com from recessions. vice, Bruce Norris, President of The Norris What do inves- Group, and Sean O’Toole, CEO of Fore-Realty411Guide.com PAGE 58 • 2011 reWEALTHmag.com

closure Radar, in Distressed Assets, pg. 49 Washington D.C. to discuss the dalism, decay and overhead costs that you potential of eas- have to pay if it sits vacant. ing the require- 5. Get in the Game. There is nothing more ments for inves- expensive than the cost of lost opportunity. tor loans. Our We all know that inflation is here to stay for audience of 15 the next few years. If our gas and grocer- including, 6 vice ies cost more today, won’t our housing cost presidents, dem- more in a few years? The best time to buy onstrated that properties has never been when the mar- Fannie Mae and ket is going up — it’s actually right now. HUD are serious Where else, outside of a game of Monopo- about wanting ly, have you been able to purchase multiple to improve the properties for as little as $25,000? situation and are willing to con- Lori Greymont is CEO of Summit Assets sider new ideas. Group. She offers educational presenta- Source: LPS, ForeclosureRadar.com, and The Norris Group. They felt that tions around the U.S., trains and mentors since multiple people new to purchasing distressed as- rental properties can be justified and sup- Tom Wilson has executed over $100M sets and coaches on creative financing ported by income rather than just borrower and 1,600 units of real estate investment techniques. Her company sells single fix financials, a hybrid product could be con- deals over 35 years. He first invested as and flip properties, bulk lists, and tenanted sidered that is a bridge between traditional a part-time activity, and then after thirty cash-flowing properties. residential and multifamily loans. The main years managing some of Silicon Valley’s hurdle yet to overcome is framing a policy pioneering technology companies, Mr. that would be politically acceptable to both Wilson put his business and management GreenBlasts.com We design & send your email or eFax congress and the public. experience toward full-time real estate to any demographic, industry or city. For more information, please contact investing. Wilson Investment Properties Current Investor List is Over 500,000 Tom Wilson at 408-867-1867 or offers high quality, high-cash flow, low- Instant & Trackable, call: 310.499.9545 tomkwilson@earthlink.net risk and leased investment properties. INVEST WITH CONFIDENCE I M M E D I AT E C A S H F LOW D iscover the lowest-risk, highest-quality residential investment properties in the country. Using sophisticated methodology, the best investment properties are carefully selected by an experienced investor and rehabbed beautifully to secure the best tenants. With competent property management, and instant cash ﬂow, your investment pays worry-free dividends from day one. PROFILE OF YOUR FUTURE PORTFOLIO “Contact me for aPrice: $110,000, fully renovated, built 2005Currently Rented for $1,195 free cash flow analysis.” TOM WILSON, President Mention Realty411 Magazine and receive one-year of free Mention REI Voice or REWealth & receive 1 year FREE 408-867-1867 premium home warrantywith your ﬁrst purchase. property management with your first purchase. TomKWilson@earthlink.net TomWilsonProperties.com

Cash Flow, Equity Sam’s Real Estate Club of Los Angeles and Appreciation EDUCATION • CONNECTION • ACTION Since May 2003, we’ve helped thousands in TEXAS of real estate investors learn, network and prosper. Also, known as LAREIC, Sam’s Real Estate Club, is dedicated to providing you with the hottest information on market conditions and how you can take advantage of this Great Recession. Join us to hear great national speakers and ever popular “Power Panels,” Are you looking for a high panel of active local investors willing to help you succeed. And quality investment property what’s more is the Sam’s Insight, a monthly segment where Sam’s with a positive monthly message will invoke action and uplifts your spirit. Once you see cash flow & instant equity? us, you’ll know there’s no other club like Sam’s Club in LA! 4-Plexes start at $399,000! We are your builder, BUY DIRECT & SAVE Sam’s RE Club of Los Angeles New construction with 1112 Montana Ave., #390, Santa Monica, CA 90403 1-800-998-9930 | www.SamsREclub.com •10 Year Warranty •100% Rent Ready Hello, I am Sam Sadat, founder and President of Sam’s Real Es- tate Club of Los Angeles. I highly encourage you to participate in your financial freedom by attending our monthly meetings. Download our marketing There’s never been a better time to buy real estate than now. packet online at: Market change forces have “conspired” to create the greatest Townhouses start at $110,000! www.prosperitysa.com wealth building opportunity since the Great Depression. It is time to invest in your future by gaining valuable knowledge and the PROSPERITY HOMES & skill sets required to achieve financial independent. I have virtually removed all “excuses” by showing you a plan on how you can make money now even if you don’t have any! Our monthly meetings are typically on the INVESTMENTS fourth Wednesday of each month at the beautiful Beverly Hills Club in West LA. You may always contact me directly for any assistance with your real estate challenges. Your success To learn more, contact: Clay Schlinke | 210.771.0861 in real estate is guaranteed with a good coach. Let me be yours. sam@samsadat.com Join Us for Our VIP Property Tours It’s NOT the house… Educational Investing Tours in TOP Markets We’ve Been Investing Out of State since 2005, Come Learn & Profit! It’s the LAND! Meet Our Affiliates, Property Managers & On-the-Ground Teams in Cash Flowing Cities, such as: Realty411 Print • Online • Network * Houston, TX www.realty411guide.com | Vol. 3 • No. 3 • 2011 A Resource Guide for Investors * Phoenix, AZ Special 3 YEAR Anniversary Issue! * Cleveland, OH ACE Capital Group invites you to * Butler County, OH Beingra is d Landlo ith Welcomes You to DAN REEDY Discover The Power of Land Banking! * Birmingham, AL Easy w HT America’s Heartland The Owner of MOREKC.com the RIG ! Helps Investors from Around * Indianapolis, IN Thirty years ago, $100,000 would have bought you a house in the World Grow their Portfolio in Kansas City, Missouri ! team either the Silicon Valley or Orange County. Today, that house * and Memphis, TN may be worth about $600,000. But thirty years ago, you had a PRIVATE & GROUP TOURS AVAILABLE Contact Us for Details and choice. You could have purchased two acres of pre-developed Tour Schedule - Featuring Both Long-Term Hold & Flip Opportunities! land for the same $100,000… and today, that land would be worth between $1,000,000 to $3,500,000 per acre! You have Call 310.499.9545 or info@Realty411Guide.com the same choice to build your wealth with land today! We will help you save and protect your IRA or 401k from the volatile stock market by rolling it over into select premium California pre-developed land that you will own with a grant deed ebsite The W nched Sign Up Online and title insurance! Take action and contact us today! for our Pocket uthat LaDebut Our zine! Contact Us Toll-Free: 1 (888) 472-4223 Maga e-Mail Listings! Go online to: www.greendeed.com  FREE Introductory Video & Information CASHFLOWCOWS.com  FREE Land Banking Seminars & Webinars  Valuable information on rewarding employment opportunities!Realty411Guide.com PAGE 10 • 2011 reWEALTHmag.com

A financial fallacy is permeating the industry, according to Jason Gosser and Steve Bighaus, part- Team Gosser Bighaus Scores! ners of Team Gosser Bighuas atGuild Mortgage. “From my perspective, the Washington-based financial professionals are the go-teamcurrent lending situation is fantastic,” Gos- when investors need funding for investment properties.ser says. “There is a myth that lending is difficult,but that is not the case,” he says, adding, vantages that “Big Banks” can’t compete cent guideline changes, no longer will an“Lending is not difficult if you can verify with. For one thing, many large financial owner have to wait six months to get theirassets and income.” institutions won’t lend to out of state inves- money back when they purchase a property Investors are being rewarded for their tors or they have strict guidelines, such as with their own funds.strong credit and financial standing with an investor has to live 100 miles from the “Fannie Mae is realizing that investors can absorb the excess inventory,” Bighaus Thanks to the recent guideline changes, no longer will says. an owner have to wait six months to get their money back years ago.and Bighuas joined forces aeach Gosser They say they compliment few when they purchased a property with their own funds. other because of their diverse backgrounds. Gosser, who had more experience with first time home buyers, blended well with Big-low interest rates in the lower to mid five subject property. huas and his expertise with investors.percent range. Because it’s a buyer’s mar- The team is also excited about changing “Our services are very well rounded, “ket, investor activity is soaring, and Team legislature favoring investors. For example, Bighuas states. “We cover virtually everyGosser Bighuas has never been busier. The Fannie Mae recently released new guide- aspect of lending.Team is able to fund transactions in ten lines on cash out refinances for investmentstates. Currently, the largest level of activ- properties. Gosser says these new rules will — by Linda Pliagasity for them is the Southeastern and West open the doors for a significant number ofCoast markets. investors to re-coup their money when they For more information about financing an Bighaus says that working with Gosser purchase a property and for those who own owner-occupied or investment property, callBighuas at Guild Mortgage has many ad- five or more properties. Thanks to the re- Team Gosser Bighuas call 425.412.5239 ClosingÊLoansÊ&ÊOpeningÊDoorsÊSinceÊ1960 WeÊspecializeÊin* ÊÊÊÊÊÊÊÊÊÊÊInvestmentÊProperties ÊÊÊÊÊÊÊÊÊÊÊUpÊtoÊ10ÊFinancedÊPropertiesÊAllowed ÊÊÊÊÊÊÊÊÊÊÊCreditÊScores,Ê620ÊorÊhigher ÊÊÊÊÊÊÊÊÊÊÊDirectÊFannieÊMaeÊServicer/Seller PleaseÊContactÊUsÊforÊMoreÊInformation Ph.Ê901.598.9458ÊÊÊEmail:ÊGosserBighaus@guildmortgage.netÊ Address:Ê3500-Ê188thÊStreetÊSW,Ê#121,ÊLynnwood,ÊWAÊÊ98037 StephenÊBighaus RicÊJasonÊGosser LoanÊOfficer LoanÊOfficer IndividualÊNMLSÊ#112825 IndividualÊNMLSÊ#Ê120413 TNÊMLOÊ#Ê57558 TNÊMLOÊ#Ê57820 WAÊMLO-11285 WAÊMLO-120413 WithÊGreatÊServiceÊ&ÊFASTÊAPPROVALS;ÊÊWeÕllÊtakeÊcareÊofÊyou!!*The Information contained herein shall not be construed as a guarantee of loan approval. All loan approvals are subject to Underwriter approval. Equal Housing Lender.Company NMLS# 3274. Branch NMLS# 37801. WA Branch CL-37801. TN Branch 4470-4315.Realty411Guide.com PAGE 61 • 2011 reWEALTHmag.com

Dave Lindahl, pg. 22the right kinds of properties for cash flow. didn’t want to learn from the school of hard •Securing funding What Walter created was a job that re- knocks alone. The systematic approach to •Negotiating dealsquired him to get up every morning and “go investing in apartment buildings appealed •Streamlining the closing processto work”. After months of effort and stress to me and I know it has some appeal to you •Property improvement— finding a bargain home, closing on it, as well. •Property managementfixing it up, and reselling it — he was reju- So, what is the system for investing in •Asset protection and wealthvenated by the thrill of making a big profit. apartment buildings? It is much the same developmentBut to earn his next “paycheck”, he’d have as for any real estate venture and it startsto start all over again. It wasn’t because he with recognizing the value in the commod- None of these things are any less important than the others and they are listed in a basic sequence of how and when you should pursue them. I can’t possibly discuss them all in detail within a single article but I do want you to see that there is a logi- cal progression here. Each step in the system has its own steps to learn, ways to validate learning, and also specific action steps to take. Back to how my system had me do things differently than Walter. Almost everybody avoids…no, almost everybody is afraid of apartments. They are afraid of Property Management (a step in the system above). I was too at first, and that is why I turned common Property Management be- liefs on their head. I knew Dave Lindahl in front on of one of his many multifamily properties. I could use this general fear to my advantage.wanted to. It’s because he had to. And it ity. If you don’t understand why real estate With the help of mentors in my life Ialways took 4 to 6 months to complete the is valuable, you can’t possibly differentiate was able to create the best apartment buy-cycle and make another profit. I decided I a good deal from a bad one. ing system that alleviated the need for meneeded to follow a different system by in- to be a landlord and didn’t have all the taxvesting and holding apartment buildings. The system for real estate also involves drawbacks of Walter’s system. It provided Naturally, I am a believer in systems as it the steps outlined: perpetual income for me and had my ten-was a system that helped me escape a dead- ants pay my mortgage.end career as a landscaper to do what I am •Building a teamdoing today. For me, a system represented •Finding properties See How One Mom Makes $7,487/Montha step-by-step approach to doing something •Locating funding sources Part-Time at:I hadn’t done before. I had no road map and •Making offers www.Rementor.com/Realty411 Naturally, I am a believer in systems as it was a system that helped me escape a dead-end career as a landscaper to do what I am doing today.Realty411Guide.com PAGE 62 • 2011 reWEALTHmag.com

The Best Opportunities …don’t last forever A division of American Foreclosure Acquisition Services Memphis’ Finest Foreclosure ExpertsB u yMe mp h i s F or e cl o s ur e s. c o m i s yo ur i d e a l s o u rc e f o r p ort f o l io - b u i l di n g a n d c a s h- f l o w i ng pr o p ert i es i n Memp h i s , T e n n es se e a n d ot h er c it i es . W e p r ov id e h o u se s i n pr ef e rr e d are a s at l o w p ri c e p o in t s w it h e xc e l l e nt ca s h f l o w. O u r pr o p er t i e s ar e a lr e ad y r e nt e d a nd w e p r ov i d e ex c ep t i o na l i n -h o u s e ma n a g e me nt . B u i l d yo ur po rt f o l i o th e ri g h t w a y , f r o m a n yw h e r e , w it h a n ex p er i e n c e d a n d r el i a b l e t ea m. W e sp e c ia l i ze in c re at iv e f i n a nc i n g o f f e ri n g p r ef er re d i n st it ut i on a l, p riv at e a n d ow n e r f i n an c i ng . Visit us on the web: www.BuyMemphisForeclosures.com (901) 870-2301 Buy Memphis Foreclosures - A Division of GM Realty, Inc. 6262 Poplar Avenue, Memphis, TN 38119

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