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    Realty411 Realty411 Document Transcript

    • This is Your Chance to Learn to Be the Bank! Private lending can generate mas- sive cash flow with all these benefits, along with the security to allow you to enjoy the life you’ve always dreamt of. h MEET OURed What is private lending? TEAM A private lender is somebody (who is not necessarily licensed) that under-- GARY BOMERSHINE stands the secrets of private lending, Gary’s strong domain ex- and how to use OPM (Other People’s pertise in creative real estate Money) to make a ‘spread.’de transactions, sales & mar- Gary Boomershine Private lenders borrow money at ade Gary’s strong him a unique in keting, give domain expertise lower rate and lend it out at a higher ability to work with entre- creative real estate to grow preneurs looking transactions, rate, making a nice profit or spread,ide sales & marketing, give him a unique their business. just like the bank! ability to work with entrepreneurs looking to grow their business.day Success in life comes with having GEORGE ANTONE Over the past five years, Mr. the knowledge to make the right George Antone his Antone has established decisions. WealthClasses offers reputation as an expert in Over the past five years, George has fields of private money as an the established his reputation you that knowledge. Let us help lending and trust deed expert in the fields ofbecomemoney investing, and has private a lending and trust deed investing and you build the wealth and the life national speaker and teacher hasthe subjects. on become a national sepaker and you’ve always wanted! teacher on the subjects.il-gh Banks borrow money at a lower rate and lend it out at a higher rate. CONTACT US TO LEARN MORE: Wealth Classes, LLC. ‘spread’ game. Banks make money, and so as private They’re playing ther- 1255 Treat Blvdys lenders we learn to be the BANK, for the same amazing benefits! Suite 230 Walnut Creek, CA 94597
    • Experienced investors know you need CASHFLOW first This Special SECRET Report Reveals: Investors, Just Imagine This... * Massive Cashflow Without Tenants! * Massive Cashflow Without Using Your Money! * Massive Cashflow Without Owning Properties! * Massive Cashflow Without Having Good Credit! * Massive Cashflow Without Qualifying For Mortgages!Imagine – appreciation without tenants, without qualifyingfor mortgages, without having good credit or using your ownmoney – or even without owning any properties!It’s Your Turn to Beat the Bank!WealthClasses will help you build wealth and the lifeyou always dreamed of; by helping you find the paththat works for you to get you there. You’ll discover howto get started, make money, save money increase cashflows and most importantly Build Wealth! Get Your FREE Report by Visiting: www.WealthClasses.com/Realty411 or Calling 1-888-888-3612 ext. 1
    • IK E ND !! the K L O D ney in N 4 o LA 01 m you T -4 kes R 4 a EA -80 m H 17 3High Net Yield Investments Single Family *12% to 15% Multi-Family *18% to 20% Turn-Key Properties! Quality Rehabs! Occupied w/ Great Tenants! Amazing Cash Flow! Hassle Free!Call Klondike at 317.804.4014 and Start Making Money Today!Indiana - Ohio - Michigan *Estimated projections. We advise all investors to perform their own due diligence and consult with their legal and financial advisors.
    • Realty411 Wealth Real Estate FOUNDER ADVERTISING Linda Pliagas Kelly Global Marketing info@realty411guide.com 310.439.1145 EDITORIAL TEAM EVENTS & EXPOS Lori Peebles Lawrence Ruano Anita Cooper NATIONAL DISTRIBUTION Andre Sanchez KJ Banks: 805.377.6328 Brianna Bertrand CALIFORNIA DISTRIBUTION COPY EDITOR Professional Distribution Solutions Anita Cooper 1.877.418.6500 PHOTOGRAPHERS PUBLISHED BY Sam Green Manifest Media Partners John DeCindis Nikolaos K. Pliagas, Chairman COLUMNISTS Sam Sadat SUBSCRIPTIONS/INFO: Dave Lindahl 310.499.9545 Bill Gatten Realty411Guide.com Charles Salisbury reWEALTHmag.com PRODUCTION info@realty411guide.com Emma Krull Join Our VIP Social Network: Augusto Meneses http://realty411guide.ning.com To Educate, Motivate & Inspire Real Estate Investors Published in Los Angeles by Manifest Media Partners (temporary mailing address: HRS, Inc., c/o Realty411, 490 First St., Ste. C, Solvang, CA 93463). ©Copyright 2007-2011. All Rights Reserved. Reproduction without permission is strictly prohibited. The opinions expressed by writers and col- umnists are not endorsed by the publishers and/or editorial staff. Before investing in real estate, please seek the advisement of a trusted financial adviser, attorney or tax consultant. Real estate investing can be risky and may result in loss of capital. Please invest responsibly. PRINTED IN THE USA. GOD BLESS AMERICA Connect to our virtual network on many websites, including: YOU CHOOSE THE HOUSE... WE DO YOUR BIDDING                 N ATIONAL R EAL E STATE       I NSURANCE G ROUP , LLC                                  Visit us on the web: BIDFORECLOSURESAZ.COM hablamos espanol 888-289-0221Realty411Guide.com PAGE 7 • 2011 reWEALTHmag.com
    • The Business of Investing Turn the Hobby into Full-Time Profit Ready to Exit Out of Your Day Job? Chris Clothier Shares Some Tips to Do Just ThatM any investors begin their real dealing with vacancies. In this respect, verage to help build your portfolio.” estate career part time with the Chris has learned tough lessons about keep- Now, more than ever, leverage is im- hope of one day turning their ing rentals fully occupied. “The first loss is portant given today’s lending climate andhobby into a full-fledged business. Their the best loss,” he says and explains: “Inves- rates. “Rates will not always remain thisgoal is to be financially independent so low and banks are very open to helpingthey no longer have to work at their corpo- investors with good credit acquire loans atrate job. good rates. Get them while you can.” To help readers who are yearning for If you dream of leaving your job for suc-a way out of the rat race, we asked Chris cess in the real estate industry, then ChrisClothier, co-owner of MemphisInvest.com, recommends you surround yourself withto share his secrets on how he was able to the most successful real estate investorsturn his pastime into serious profit. you can. “Listen to their advice,” he rec- The Clothiers (Chris and his brothers, ommends, “it’s one of the wisest movesKent and Brett, led by their father, Kent Left to right: Brett Clothier, Chris Clothier, you can make.”Sr.), have been real estate investors col- Kent Clothier, Than Merrill & Kent Clothier, Sr. Chris does exactly that both in his per-lectively for 51 years. About 10 years ago, sonal and professional life as a coach withtheir real estate investments went from be- tors have to understand that the first offer Fortune Builders, one of the fastest-grow-ing a hobby into a full-fledged business. from a qualified tenant might be the best ing educational companies (not to mention In a short amount of time, their portfo- offer if they are in a tough rental market.” #37 on the Inc. 500 list). He thinks hiringlio has grown to include over 120 rental He adds that many investors make the a mentor makes a lot sense from a point ofproperties. (Additionally, they have sold mistake of holding out for higher rent even reducing the learning curve and holding193 properties to investors worldwide in2010; and have closed 102 properties so Maximizing monthly cash flow can be an investor’s ticketfar in 2011.) So how were they able to expedite their out of a corporate job, so keep a close eye on all costs.success in a short amount of time? The firststep may sound simple, but its importance after a qualified tenant may request a rent yourself accountable to your goals.cannot be stressed enough. From their ex- reduction. Before saying, “No way,” Chris For the Clothier family, they rely onperience as investors and property man- advises investors to think carefully. valuable friends (some of their businessagers, the Clothiers realize that organiza- “One vacant month mentors, who havetion is crucial for success. Chris explains: can be the difference Meet MemphisInvest.com helped their real es-“Only after tracking and keeping clear re- between a good year Would you like to learn more about investing tate investing com-cords can investors evaluate their business and a bad year,” he in the Memphis market? Be sure to meet the pany, go back to theand take it from the status of hobby into a warns. “So if they are Clothiers in person when they visit your city. late 1960s). Theyreal wealth-building machine.” quality tenants, work DATE CITY also spend a lot of May 26 Dallas Next, it’s important to keep tabs on with them and get them June 1 San Francisco time participating inproperty expenses. Maximizing monthly in your property.” June 2 San Jose mastermind sessionscash flow can be an investor’s ticket out For the security of June 15 Los Angeles with other entrepre- June 16 Santa Anaof a corporate job, so keep close tabs on your properties, it’s im- June 17 San Diego neurs and businessall costs. “Keep an eye on such items as portant to reduce risk July 28 Atlanta owners. One thing to Aug 16 Houstontax appraisals, which affect tax rates, and as much as possible; Aug 18 Dallas note is that the roadinsurance quotes,” Chris advises. “Each of just keep in mind that Sept 16 & 17 Memphis to success may notthese factors come right off the top each a certain amount of risk For more information, contact: 901.751.7191 always be easy, butmonth. Keep track of them and periodi- is good and needed for if one stays diligent,cally make sure you have the best rates to growth. In business, as in real estate, a fine the path will eventually lead them in thedrive up cash flow.” line exists between expansion and risk. right direction. Investors also need to be proactive when Chris always advises investors to “use le- — Interview by Andre SanchezRealty411Guide.com PAGE 8 • 2011 reWEALTHmag.com
    • A safe, lucrative and scalable blueprint for financial security The Banker’s Code by Anita Cooper A to deal with taxes, tenants, repairs...all the For example, using arbitrage alone, sup- ccording to the Bureau of headaches. And they get paid last. Always. pose you borrowed $100,000 at 8 percent Statistics and the Department Compare what you do now to what the and loaned it all out at 15 percent. The of Social Security, if you fol- banker does. The banker has to learn secret spread would net you $7,000 at years’ end lowed 100 people throughout strategies of banking; how to shift risk to after paying back your funding source. Not their lives and observed their financial sta- real estate investors. All they have to do is too impressive, perhaps, but when you add tus at retirement, you would discover that tell the world that they have money to lend leveraging into the mix, that’s when you only five percent were financially set and and the leads flow in. They don’t have to really get to see private lending magic inon and Success of ready to retire. Another five percent WealthClasses offers both deal with tenants, look for deals, or action. anything else but simply create mon- MEET OUR would have to continue introductory & advanced Let’s say you leveraged the originalClasses working to make ends meet, 36 percent would ey out of thin air. Best of all, they $100,000, which you borrowed at 8 per- classes: get paid first! But you couldn’t be cent, four to one at the same rate, which TEAM an be summarizedthe re- one be deceased and with a banker, Paced Classes money out ofna- increased the financingGARY BOMERSHINE • Self banks lend available online to $500,000 total. maining 54 percent would: Financial Freedom for Everyone the deposits that theyday tionwide 24 hours a receive...or Lending out the half Gary’s strong 15 per- million at domain ex- pertise in creative real estate be dead broke. do•they? cent interest would pay out $35,000 at WebClasses available online nationwide transactions, sales & mar- Sobering statistics aside, Gary and George teach their years’ end, even after keting, give him ayour paying back unique students lending strategiesnationwidesource(s). • TeleClasses available online they ability to work with entre-d Success of there is a way to increase your wealth without be- WealthClassesTheCoursesboth online nationwide Throughout their time spent teach- offers available call Live Banker’s Code. Through • MEET OUR preneurs looking to grow introductory &compelling program, in- ing more than 250 students how to become their advanced their business.s ing chained to your desk all of your life: passive income. classes: • Videos and Audios available online dividuals learn howWealthClasses TV 24 hours a day through to use the TEAM private lenders, banker’s secrets to generate pas- Gary and Georgemarized with one otherwise known as Self Paced Classes available online na- Classes, Work- Passive income, • GARY BOMERSHINE ANTONEGEORGE “mailbox money,” offers a stress-free way tionwide sive 24 hours asafely and Mastery • Nationwide without income day Gary’s strong domainhave past five years, Mr. ex- devised a Freedom for Everyone shops, and Seminars offered live on Over the of life, one that many seek but few find. working as hard as they did as weekends pertise in creative realblueprint for suc- his estate Antone has established • WebClasses available online nationwide transactions, sales & mar- that they are in Once you’ve tapped into the power of pas- investors. Their students have reputation as an expert cess keting, give him a unique the fields of private money • Testimonials sive income, you won’t look at money or TeleClasses available online nationwide of achieved an incredible rate ability to work with lending and with deed sharing trust oth- entre- ing the investing addition toway ever again. you•can success; available online nationwide away with In the same gaining knowledge Live Courses theywas completely blown “I have learned how grow They are of- ers. preneurs looking to investing, and has become a their business. national speaker and teacherdecision. Boomershine start making Antone, to become the quality, the amount you learn, the Garyalso learn how to and George passive the bank. fering an exclu- on the subjects.knowledge.expert income through our affiliate program. real estate investors and lenders, • Videos and Audios available information...” Jay Biggs amount online Private lendingofmagic hap- sive opportunity through WealthClasses TV 24 hours a day ho embrace work with average individuals who are pens when “... we use a combina- be MEGA Mil- you were mentored to to a limited num- l literacy get tion of OPM (Other People’s breakthrough Gary Boomershine and George Antone ber of individu- GEORGE ANTONE seeking ways to improve their passive in- Nationwide Mastery Classes, Work- Promote Wealth Classes and • lionaires through George’s CONTACT US TO LEARN MORE:at work. Over the past five years, Mr. come stream. Teaching their students how shops, and Seminars offered liveYou can Start earning Money Today! weekends and leverage. Money) system...” Dakota Lim on als through a free Antone has established his Wealth Classes, LLC. to set up and replicate the most effective increase your it’s a fantastic seminar on really under- on reputation as an expert inIn this session, wealth by doing exactly what one one strategy session.Freedom, “... 1255 Treat Blvd way to create a passive income, students the banks do. As a private and uncoventional waysGary and fields of private teach you the most Testimonialslookingcreative lender,whichhave efficientSuite 230trustproviding passive in- you standing the George will money lending and learn, step by step, a process of wealth cre- three different lending options,”Anand Ayyar at at cashflow... can method of deed investing, and has become auild wealthation that many onlyyou can of. n addition to gaining knowledge dream “I was be combined with other strategies to in- completely blown away with Walnut Creek, CA 94597 come available: private lending. national speaker and teacher d of; by help-As an investor, you work hard to create quality, the amount you learn, the exponentially:also learn how to start making passive the crease your passive income If you’re subjects. charge” type of indi- on the a “take amount of information...” Jay Biggs Support: 1 ncome through our affiliate program.ks for you to a passive income for your family. When Debt financing - This simply means that vidual who is willing to strike when you (888) 888-3612 how to get “... we were mentored to be MEGAa percentage andney, increase you first started, you had to attend semi- you lend money out at Mil- find the right opportunity, now is the best lionaires through George’s breakthrough Promote Wealth Classes and everything you collect repayment of principal plus interest time toFax: advantage of this fabulous CONTACT US TO LEARN MORE: nars, take classes, and learn system...” Dakota Lim take Start earning Money Today! a successful real on a monthly basis. could about how to be for education and Wealth Classes,as the 287-1653 (925) offer, LLC. current market is a highly 2 e introduc- Share your passion estate investor. You had to learn theWe “... it’s a fantastic seminar on reallyYou charge a1255 Treat Blvd one for private lenders. Private y your path to knowledge for creating wealth! tech- Equity financing - under- per- profitable lending VISIT OUR WEBSITE@ because standing creative and uncoventional ways y to Success, provide you with all of the tools youat looking at cashflow... the investor’s profits. Suite 230 niques that work with different markets. centage of ”Anand Ayyar has existed for decades 3 www.wealthclassesaffiliates.com iness! Life as an as an Affiliate. means search- need investor now Combination of both - You collect both Creek, CAit’s lucrative and it’s scalable. If Walnut it’s safe, 94597 ing high and low for suitable properties, a percentage on a monthly basis and a you’ve been looking for the missing key to spending time and money marketing, talk- percentage of the profits as well. Support:generating passive income without all of ing with a lot of people to discuss the deals, When you combine these lending strate- 888-3612 (888) the headaches, you’ve found it! submitting a lot of offers, and dealing with gies with arbitrage (spread) and leverage, Fax: a lot of headaches. your profits are greatly increased; all (925) 287-1653out www.justlikethebank.com and with- Check Share your passion for education and And then finally, locating a funding out signing a loan, spending your own mon- start enjoying the freedom today that a knowledge for creating wealth! We passive income stream offers. source...as fast as possible. Investors get ey or even getting your credit checked. provide you with all of the tools you VISIT OUR WEBSITE@ Realty411Guide.com need as an Affiliate. PAGE 10 • 2011 www.wealthclassesaffiliates.com reWEALTHmag.com
    • Affordable Legal Protection for InvestorsI by Lori Ellen Fouts not a financial issue but a simple step as a concerning questions. When was the last prudent business-person to get the advice time your health insurance company called f you are a real estate investor, and help that you need to make the best de- you to ask you to please use your policy? agent, broker, homeowner or renter, cisions? Just think of the things you could In fact, you may utilize your plan for most you have often been presented with speak to an attorney about: asset protection, things the same day that you sign up and a contract to sign. How many times loan modifications, short sales, landlord- some pre-existing issues are also covered. have you had that contract reviewed tenant issues in multiple states and identity For last ten years, my family and I haveby your attorney before signing? Need- theft, just to name a few topics. What if you been using the Pre-Paid Legal Life Eventsless to say, that contract was written by could access a top-rated attorney in any Legal Plan. This has helped us with the someone else’s area of law, whenever you wanted, AND day-to-day issues that come up for every- a t t o r n e y, a n attorneys in ALL fifty states? This is where one: The speeding ticket, getting a rental attorney with Pre-Paid Legal (PPL) comes in. PPL is built deposit returned for our college-aged son, their interests on the insurance model where you pay a resolution to the credit card company dis- in mind, not monthly fee and then have a menu of avail- crepancy. yours. able services that are covered under your As for helping me as a real estate inves- Most of us plan. But unlike a very costly health and tor, I could not even begin to say how many do not call an attorney to auto insurance, Pre-Paid Legal has built a times that I have used the service, or could review our documents, successful and affordable service. And un- even begin to calculate how much money I much less to simply ask a like other types of insurance, members are have saved by doing so. Actually, it would question or to find out our encouraged to use their memberships, and be difficult to calculate the savings because rights because of the high use them often! I can’t say I would have used an attorney at hourly costs. Often we To encourage the Pre-Paid Legal mem- $200 to $500 per hour every time I needed don’t know whom ber to use their plans right away, they offer advice on a landlord-tenant issue or have to call. What if call- a comprehensive will at no charge, and en- ing an attorney was courage you to call an attorney to ask any Continued on pg. 54
    • Market Spotlight: JACKSON LOCATION: Jackson, Miss. COMPANIES: company and other investors in our com- HomeStar, LLC munity are having great success. Jackson, Premier Equity Miss., was not a bubble town, we were Group, LLC never inflated like other high-appreciation CONTACT: and over valued areas. We are still retail- Julie Harrison ing houses, therefore we still have great (601) 291-0689 comps and a good mix of home owner- Justin Harrison ship in the areas where we are providing (205) 616-3761 investment properties. The banks are the one’s taking the bath. We continue to pickQ: What kind of opportunities are up their discounted inventory, get the prop-you seeing in your market? erty rehabbed and get it performing again.Julie Harrison: Simply put, great We’re not sure how long its going to last,cash flow. Our investment team has ing. Our bread and butter cash houses can but we are going to take full advantage ofestablished relationships in our community be acquired for $48,500, with an average this slump.that allow our company to acquire qual- rent of $750. It’s really hard to beat! Mis- Q: What is the best part of being an in-ity single family houses in stable sissippi property taxes vestor in your city?neighborhoods, complete with are among the nation’s Julie: The demand for Jackson and ourrenovations, leased and set up lowest, also contribut- houses has been awesome, we stay soldwith property management.Our ing to the great cash out. Investors from across the country areprice points are hard to believe flow equation. coming in weekly. We have met investorssometimes. For example, our Q: How is your mar- from California to Australia, investors frominvestors are able to pick up a 4 ket handling the eco- almost every state have contacted our com-bedroom, 2 bath full brick newly nomic slump? pany at some point. I have built high-endrenovated house for $67,000, with Justin Harrison: It re- new construction houses for 30 years, mil-an average rent of $875, which are ally depends on who lion dollar homes. Now I’m buying middlegreat for 20 percent down financ- you’re talking to. Our income houses and have become a more Julie Harrison
    • Join Us for buy-and-hold Q: Are there any investor. I wish special financing I would have or programs avail- started 20 years Special VIP able that inves- ago, in the last tors should know three years I’ve about? compiled 25 Property Tours Justin: It’s becoming free-and-clear more of a cash game rentals. I’ve never Nice rental home in Jackson, Miss. everyday. With that be- had so much fun with real estate. ing said, we still have 20% down financing Q: Why should investors buy rentals in available. We keep our transactions clean, Educational Investing Tours your area? no creative financing, Julie: You have two key it just doesn’t work in TOP Cash Flow Markets components, the MARKET long term. A 20% down Wealth Wealth Real Estate th A th A e Pu Sp blish e Pu Sp blish ec ec ia ia l Ed s of l Ed s of er er iti Real iti Real on ty on ty fro 41 and the TEAM, the team is fro 41 purchase runs about m 1 m 1 Vol. 1 • No. 1 • 2010 Vol. 1 • No. 1 • 2010 invaluable. I would say we $17,000 out of pocket are bit seasoned, we’ve seen Shares His Secrets! and includes closing Shares His Secrets! it all at this point. We’ve costs. Most investors drilled down to the best can get up to four mort- areas that yield the best re- gages. We do have fi- turns. We really believe in nancing available for Serving the Needs of Accredited Investors - INSIDE: Information to Grow and Maintain Your Wealth Serving the Needs of Accredited Investors - INSIDE: Information to Grow and Maintain Your Wealth 16 19 35 buying a rental property in Words of Wisdom from Maverick Investor Group Bruce Norris Prepares for Annual properties over four, but Masters of Real Estate Reveals the Next BIG Thing “I Survived Real Estate” Charity a home ownership area, ver- Janelle Harrison, baby Willow you have to have strong We’ve Been Investing sus buying a rental property cash reserves. in a rental area. We like to & Justin Harrison in Jackson, Miss. Q: What tips or ad- Out of State for YEARS, have neighborhood pride. vice do you have for our readers? Come Learn & Profit! It all starts with picking a good house Julie: As always, due diligence is key in any and ending with strong property manage- venture and the understanding that we are Meet Our Affiliates, ment. Our turn-key approach tends to work in a long term investment period. Buy and Property Managers & On-the-Ground Teams A 20% down purchase runs about $17,000 in Cash Flowing Cities, out of pocket and includes closing costs. such as: Being • Houston, TX Lansy rda is dlo Ea with the best. We handle the transaction from hold what you can within your means. With start to finish. You have a performing in- our company, we love for our investors to • Phoenix, AZ the RIGHT team! vestment from day one. come visit us and see all the upside to Jack- Q: What makes your company unique? son. We want to meet you and see you face • Cleveland, OH Julie: Experience, thirty years of building has helped establish our in-town relation- to face. We want you to see what • Indianapolis, IN ships from bankers to contractors. Over- you’re investing • Birmingham, AL coming obstacles and backing up our work in. Remember this separates our company from our competi- is a long-term rela- • Kansas City, MO tors. To back that up, we offer a one-year tionship. We want warranty on repairs. Yes, we are that con- you to be comfort- • Butler County, OH fident in our houses. Going back to the TEAM concept, when you buy from us able with our team and we want to be • and Many Other Areas! you join our team. You become an investor with us, it’s a long-term relationship comfortable with Premier Equity Group Team: the investor. Chris Donaldon and Justin PRIVATE & GROUP TOURS Harrison at the Masters. AVAILABLE Contact Us for Details and Tour Schedule — Log On to Our Private Network Featuring Both Long-Term FREE to Join * LIVE Chat Available GreenBlasts.com Hold & Flip Opportunities! We design & deploy eMails or eFaxes http://realty411guide.ning.com to any demographic, industry or city Find Events, Deals, Friends & MORE Instant & Trackable - Special 10% Discount! 310.439.1145 | greenblasts@gmail.com Call 310.499.9545 or Questions? info@realty411guide.com info@Realty411Guide.comRealty411Guide.com PAGE 13 • 2011 reWEALTHmag.com
    • Dorfman Delivers Success Outstanding property management is essential for success and with over 35 years experience, Dorfman Property Management is the industry leader in Indianapolis. The family-run company has owned investment properties since 1960. Jeff Ader, a Dorfman executive, tells us why the company is so special.Q: Tell us a bit about Dorfman Property common mistakes are purchasing in a high Ader: First of all, it’s always important toManagement, how did the company come crime or undesirable neighborhood and diversify your investment portfolio. Hav-about? not doing a thorough rehab. ing different asset classifications, such asJeff Ader: Dorfman Property Manage- real estate, stocks, bonds and precious met-ment was founded 35 years ago by Martin Q: Do you have many clients from out of als, helps reduce risk in your overall invest-Dorfman and his daughter Miriam Ader state and other countries? ment portfolio.to manage family A d e r : Ye s , w e Secondly, people can build wealth andowned properties service many cli- accumulate a high net worth by buyingas well as provide ents from Cali- and holding rental properties over a periodfee based property fornia as well as of time. Here is a simple example of whymanagement ser- Arizona, Florida, rental properties can be such a powerfulvices for Indianap- Hawaii, Illinois, wealth generating investment:olis investors. New York, Ohio, Georgia and many Exhibit A: $20,000 lump sum @ 5% inter-Q: From an inves- more. In addition, est at the end of ten years equals $32,578tor and managers we have clientspoint of view, what in Italy, Austra- Exhibit B: $20,000 cash outlay on aare some common lia, France and $100,000 rental property, which leavesmistakes that in- Japan. $80,000 financed with 5% appreciation pervestors make? year at the end of ten years equals $82,889Ader: Overpaying for a property and not Q: Why do you think people should havedoing research about rental amounts. Other rental properties in their portfolio? Continued on pg. 16 Rent your property FAST HIRE Dorfman Property Management Our Available Services:
    • Northern California Based Real Estate Investment Club Expands South to Meet a Surge in Business Kathy Fettke relocates to prices in Sydney or Singapore. Malibu & opens new branch We hope to continue to educate people locally and internation- by Linda Pliagas ally about the opportunities that exist for real estate inves-Malibu, Calif. — Real Wealth Network, the tors today.”internationally-known real estate invest- Fettke, along with her hus-ment club headquartered in Walnut Creek, band Rich, director of busi-Calif., has expanded its offices to South- ness development, and theirern California. For the past six years, Real 11-year-old daughter, Krista,Wealth Network has assisted its members moved to Malibu in Decem-in increasing their wealth through quality ber and have been busy settingeducation, resources and finding turn-key, up a new home and businesshigh cash-flowing investment properties branch. Director of operations,nationwide. Ron Manabat, remains at the Walnut Creek markets puts $8,000 more per month in our “We need to have a presence in North- office to oversee the Northern California pocket.” Fettke is a prime example of howern and Southern California to be able to home base. savvy investors can reside in their dreamaccommodate our investors,” says Kathy The Real Wealth Network team plans to city and fund a lavish California lifestyleFettke, CEO of Real Wealth Network. host monthly live events in both Northern with out-of-state rentals. Savvy investors can reside in their dream city and fund a lavish California lifestyle with out-of-state rentals.“Eventually we will include New York and and Southern California.Chicago as well, but this is a good start.” The Real Wealth Show, a Top 10 weekly The expansion came shortly after Fettke podcast on iTunes where Fettke shares herreturned from Sydney, Australia where veteran real estate investing advice, is con-she met with over 300 prospective inves- tinuing to build an international audiencetors who have since purchased hundreds of in over 25 countries.units in the United States through her net- As an investor, Fettke is practicing whatwork. she preaches. Malibu is a high-priced mar- While in Sydney, Fettke appeared on ket so she chose to rent a residence and buyCNBC’s Squawk Box and was inter- additional rental properties instead.viewed about the U.S. housing market. Explaining her logic, “The mortgage on“The show hosts our $1.2 million Malibu beach home would be twice what we Kathy Fettke talks U.S. real estate in Australia.were amazed thatproperties could pay in rent. Instead, we are us- To sign up for a free membership, visitbe purchased for ing that $1.2 million to buy in- www.RealWealthNetwork.com. Be sure toless than $50,000 vestment properties outside of download the free report, “7 Steps for Newand be rented for California, which bring us three Real Estate Investors.”$750,” Fettke re- times what we pay here in rent! To hear the CNBC interview, please visit:calls. It’s all about cash flow. Renting http://www.cnbc.com/id/15840232/?video “They’re not our primary residence and buy- =1678724672&play=1used to those ing rentals in more affordable The Fettke Family in Malibu, Calif. Realty411Guide.comRealty411Guide.com PAGE 15 • 2011 PAGE 13 • 2011 reWEALTHmag.com reWEALTHmag.com
    • Dorfman Delivers, pg. 14 As you can see, you are utilizing ordinates rehabbing vacancies the power of leverage and appre- and maintenance of occupied ciation of real estate, which can properties. In addition, she turn $20,000 into $83,000 at the communicates with owners to end of 10 years, as opposed to provide guidance about their a savings account that will leave investments and with tenants to you $33,000. This doesn’t even solve problems on a daily basis. take into account a positive cash Q: What makes your property flow of $200 per month, which management unique and why would add an additional $24,000 of income over the 10 year period. This clearly shows how powerful rental property can be as a long- term investment. Q: Tell us about Invest Indy.com, when did you decide to branch out and start the property sales di- The Dorfman team: Jeff Ader and vision of the company? Rhonda Steele attend a real estate event. Ader: After managing hun- dreds of properties over the do you think your company has years for many individual inves- grown so much? Having different asset classifications, such as real estate, stocks, bonds and precious metals helps reduce risk in your overall investment portfolio. tors through Dorfman Property Ader: Our company has exten- Management, it became appar- sive knowledge of Indianapolis ent that investors needed guid- investment properties both ur- ance in selecting, rehabbing and ban and suburban, resulting in managing their rental properties the ability to advise investors for maximum returns. The con- as to the best areas to maximize cept of a turn-key real estate in- rental income and reduce ex- vestment company that locates, penses. rehabs and positions the prop- We also have the capability of erty for positive cash flow in managing a large volume of in- the Indianapolis area was born. vestment properties yet are able InvestIndy.com was formed to to provide personalized services help clients locate quality prop- to individual owners. Our leas- erties, at great locations with the ing and operations manager, best cash flow returns and with Rhonda, personally reviews ABSOLUTELY NO EFFORT every tenant application along on their part. with overseeing the details of Q: How long have you been in- the rental process. vesting in real estate? Rhonda’s attention to detail Ader: I personally began invest- and expert knowledge of the ing in 1976. marketplace has resulted in re- Q: Tell me about Rhonda and altor referrals from all over the her role in the company? country. Our philosophy is that Ader: Rhonda Steele is the head by being responsive to prospec- of company operations and leas- tive tenants seven days a week, ing. She is responsible for all and being readily available to aspects of the leasing process set leasing appointments, maxi- as well as supervising leasing mizes the ability to quickly agents and office staff. She co- lease rentals.Realty411Guide.com PAGE 16 • 2011 reWEALTHmag.com
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    • The SJREI Association provides the educationand networking necessary to enable individuals tomake wise, profitable investments. Whether you have yet to purchase your firstinvestment property, or are working on your hun-dredth deal, you’ve found the Bay Area’s mostdynamic investors association. At our monthly meetings we host guest speakerswho are experts in their fields, providing insightfuland current information for real estate investors. In addition, the SJREI Association meetings arean essential tool to assist with building a compre-hensive real estate team. With three chapters spanning the bay, SJREIAssociation offers excellent programs and network-ing opportunities at a location close to you. Our Mid-Peninsula Chapter meets in Foster City,the South Bay Chapter meets in San Jose, and theEast Bay Chapter meets in Pleasanton. The SJREI Association strives to provide itsmember with the latest, up-to-date information onreal estate investing. We are a one-stop-shop of re-sourceful information for the novice and the experi-enced real estate investor.Want to Learn More?Subscribe Today!Receive REI Voice™ Magazine for You found REI Voice™: the Voice of the Profitable Real Estate$19.95 — that’s 35% off the news- Investor and the most recent endeavor of SJREI Association™ For questions or to contact online, visit:.stand price! For information, visit: http://www.reivoice.com/contact-ushttp://www.reivoice.com/subscribe or SJREI Association | (408) 264-3198 Website: http://www.sjrei.net
    • Dave Lindahl’sSyndication Secrets Learn How to Grow Your Portfolio FASTERK nown as the “Apartment King” modest three-unit rental in a depressed people’s annual salary! and the leading authority on area of Boston. He soon made a goal to How did Lindahl acquire so many commercial real estate invest- acquire 1,000 units as quickly as pos- properties and accrue an abundance ing, Dave Lindahl currently sible, so he transformed himself from of cash flow in such little time? Using a owns more than 7,500 multi- “a dead broke landscaper” into a savvy sophisticated technique that investorsfamily units in some of the nation’s best syndicator. call OPM (Other People’s Money).emerging markets. His private acquisition Within a short time frame, he was By offering accredited investors anfirm, the Bostonian Investment Group, managing millions of dollars worth of opportunity to join him on deals, Lindahlalso owns interests in retail centers, self assets on a national scale. In fact, it only was able to reach the destination to realstorage facilities and office buildings took him 3 1/2 years from the time he estate riches much faster. He estimates Like most investors, Lindahl started started investing to be able to retire and he’s raised more than $30 million inout small. His first purchase was a enjoy a monthly income larger than most capital from investors around the world.Realty411Guide.com PAGE 21 • 2011 reWEALTHmag.com
    • His success came so quickly and Investors can also control much larger Tell us how your bootcamps and self-profoundly that soon others began to re- real estate deals than they would have, study courses help investors learn toquest his knowledge, which led Lindahl had they not participated in the syndica- package it all together?to become a top educator in the industry. tion. Lindahl: They basically take you step byHe has shared the stage with such lumi- step throughout the whole process. Firstnaries as Tony Robbins, Robert Kiyosaki Q: Dave, we know you come from a of all, I show you where the money is soand Donald Trump. In fact, Trump asked very close-knit family. Were your sib- you know where to find it. A lot of peopleLindahl to write a book on commercial lings and extended family some of don’t know anybody with money becausereal estate, “Trump University Commer-cial Real Estate 101: How Small Inves-tors Can Get Started and Make It Big.” Lindahl has also authored numerousother books and courses including suchbest sellers as Emerging Real EstateMarkets, Apartment House Riches, andThe Real Estate Marketers’ Tool Kit. What’s most surprising is that Lindahlwas at first reluctant to accept responsi-bility for other people’s money, but he re-alized it was the only way he could reachhis goal of amassing 10,000 units. So, heset out to formulate a program to stream-line the process and ensure maximumsuccess. We recently caught up with Dave in be-tween his travels to discuss syndicationsand their importance in growing a well-balanced real estate portfolio. “The Real Estate Business is Really a MARKETING Business” your early investors? they are hanging around in the wrongQuestion: When did you discover the Lindahl: When I started investing, I be- places. So I show my students where topower of real estate syndication? came partners with my brother and sis- locate people with money.Dave Lindahl: I started syndicating more ter, but they weren’t my investors. When Secondly, I prepare my students onthan seven years ago, when I realized I started out, my siblings were all broke, what to say when they attend events orthat it was easier to buy bigger properties so they did not have any money to put locations where there are people withthan smaller properties. into my deals. That’s why I had to go after money. I teach them the initial introduc- I was self-funding my own deals before investors. My father, who told me to stay tion and how to offer an opportunity. Wethat and I realized I was going to need away from real estate when I first started, never ask for money, we always offer op-a lot more money to reach my goal. By actually became a very large investor in portunities.then, my objective had changed from many of my deals and still is. Next, we teach how to close for the[owning] 1,000 units to 10,000 units. I re- second presentation, which is usually aalized the more I could get other people Q: Is it a good idea to start with friends lunch or dinner presentation. There youto partner up with me, the more deals I and families when raising capital for lay out exactly who you are and what youcould buy. syndications? do. Of course, my students also learn Lindahl: Doing business with family mem- how to structure deals properly.Q: From an investor’s point of view, bers can be a great way to start, but when One important thing to note is that ifwhat are some positive aspects to ac- family and friends are involved there can you’re going to be pulling in money in aquiring properties through a syndica- be more emotional involvement in the deal, you have to consider the Securi-tion? deal. I do see a lot of my students start ties and Exchange Commission (SEC).Lindahl: Joining a syndication is great for with family and friends then graduate to A good part of the training is how to staybusy investors because they don’t have larger investors. within the boundaries of SEC regulations.to deal with management, they can have People always ask me: “How do I avoidpassive income and participate in the ap- Q: Organizing syndications takes a lot the Securities Exchange Commissionpreciation of a deal. of skill, expertise and marketing flair. rules.” I always say, “You don’t, you justRealty411Guide.com PAGE 22 • 2011 reWEALTHmag.com
    • follow their rules, which are easy Upcoming Events style, are you buying and holding orrules to follow but you have to know are you doing short-term deals by re-what they are.” by Dave Lindahl positioning ? The most important part of my Lindahl: It depends on the market and thesyndication training is how to man- PRIVATE MONEY SYNDICATION type of property. We typically like to holdage the deal and how to manage San Diego, CA ... May 20-22 and maximize the appreciation since thethe investors. Now, I’m not speak- deals we acquire have strong cashflow.ing about how to be a landlord, I’m FORECLOSURE BOOT CAMPtalking about how to be an asset Chicago, IL ... June 3-5 Q: Donald Trump asked you to writemanager. Because as a syndicator, the book on commercial real estate foryou have to manage your investors, MANAGING THE MANAGER his educational series, how was it towhich can be more difficult than work with him? Boston, MA ... June 10-12managing properties. Lindahl: Donald is a true delegator. If you’ve ever seen “The Apprentice”, he isQ: Really, that’s interesting, why COMMERCIAL TRAINING ACADEMY just like the way he is in on the show. He’sis that, Dave? Boston, MA ... July 15-17 tough, but fair and down deep he’s actu-Lindahl: Because of the emotions, ally a very caring person.because of the personalities. And APARTMENT HOUSE RICHESit’s always the person who puts in Boston, MA ... September 13-16 Q: Besides Trump who are some otherthe least amount of money who is real estate leaders that you admire?always the biggest pain in the butt! Lindahl: My first mentor was a guy by the ey will come,” but it’s always a good idea name of Mark Shavell from Cape Cod,Q: It must be such an awesome feeling to be marketing for both at all times. Mass. He really introduced me to con-to know that people place such trust servative investing and commercial realand high regard in you and your deals Question: Your private acquisition estate.for them to invest with you. company the Bostonian Investment I also look up to Sam Zell out of Chi-Lindahl: It is. But when I first started, I Group is known for acquiring large cago. He is known as “the grave dancer,”didn’t really want to be responsible for multifamily complexes and I know you because he made his billions buying inother people’s money. It took me a while also invest in self-storage facilities. markets just like these, markets that areto start offering opportuni- down.ties so that others could Q: Besides commer-come into my deals. But a cial real estate, your ex-lot of people wanted to be pertise is also in locatinginvolved and I realized it emerging markets. Can youwould give us the ability to give readers a tip on how todo more deals. However, locate a booming area?a lot of responsibility goes Lindahl: It’s all about jobalong with having other growth and an increase inpeople’s money, and it population. We follow andtakes time and special- read the business periodicalsized knowledge to be able on a regular basis and also re-to do that properly. search demographic trends.Q: What comes first: The Q: Do you have any otherdeal or the investor? tips or suggestions for ourLindahl: Both. The real readers?estate business is really a Lindahl: Putting together amarketing business. You syndication allows investorsneed to be marketing all to use leverage and acquirethe time. You should be larger deals using other peo-marketing for deals and ple’s money as equity. It alsoyou should be marketing gives investors confidence tofor money. What other type of properties do you get into larger deals knowing they always If you don’t have [monetary] commit- like to acquire? have the resources behind them.ments for any deals that may come up, Lindahl: We also buy triple net lease — Interview by Linda Pliagaswhen you go to negotiate for one, sub- (NNN) properties, office buildings andconsciously you will negotiate from weak- retail centers. Actually, retail centers areness because you know you don’t have our favorite type of property acquisition at Receive Dave Lindahl’s “Insider Secretsthe money. A lot of people actually self- the moment. to Creating Wealth” for FREE, simply callsabotage themselves by doing this. 1-800-559-8590 or visit: I’ve heard, “If it’s a good deal, the mon- Q: What is your current investing www.DavesOffer.com/Realty411Realty411Guide.com PAGE 23 • 2011 reWEALTHmag.com
    • Where Do You Buy Now? The Search for a 10% growth Market by Charles Salisbury, MBAA loan and property taxes ll successful investments begin kets that I seek. You can paid. Additional expens- with a plan of action and steps find these markets through es such as repairs and designed to support your ob- various ways, including the 10% property man- jective. The more time you put reading national publica- agement fee is also a taxinto finding the right investment, the more tions like Forbes and For- benefit.experience you’ll get. And, like all other tune, which identify growth I’ve had people attendthings in life, you will get better at find- trends and publish must- my $39 seminar and telling great investment opportunities. Mak- read information like “The me that they were of-ing mistakes is part of the process because 10 Hottest Urban Growth fered real estate coursesthere is no perfect process or perfect in- Markets” or “The Best for $5,000, which willvestment. People are different and invest- Places To Retire.” teach them how to make a “fortune rehab-ments are different. Results vary over time Many other publications will also identi- bing foreclosures.” There are TV programsbecause markets shift. What worked yes- fy growth areas. I occasionally receive tips glamorizing the role of “simple folk” whoterday might not work the same next time. from residents of a local area who tell me can “flip” properties and get rich. It’s goodSo, being adaptive and flexible is important about all the activity going on in their com- entertainment, but it’s only for the pro-when searching for the right place to invest munity. When you live in a growth area, fessionals. If you’re not in the real estateyour money. you can’t help but know it. You can see and business full time and able to do most of Looking for a growth area in real estate experience the growth. the work yourself, then it’s not for you.is no different. I will share with you the If you don’t live in a growth area, but The risk is too great and the profits are tooway I look for undervalued markets so that want to locate them, you can find out where small. You don’t need to spend money toyou can mimic me or use my experience as Wal Mart and Kmart are building their new learn how to loose money under the falsea resource to add value to whatever you’re super centers or find out where those new impression that you will “make a fortune.”doing. building supply houses are locating new Real estate is the number one investment My initial goals are to locate areas in the stores. Lowe’s doesn’t build large stores to in America and you can ensure your futureU.S. where growth is almost predictable sell building supplies unless there is a need. by building a secure investment real estatebecause certain infrastructure investments Using common sense and knowing what to business. You can also lose money by mak-have already been made. Growth areas are look for will be important in your search ing bad decisions and in real estate you ownidentified by new roads or the widening for growth markets. the mistake when you own the property.existing ones to handle increased traffic. The final test for me is an actual visit to The program that I outline in my book,Usually the growth areas are suburban as the area. Go there, rent a car and travel the “The Incredible Investment Book: Thean established and aging community finds area. Talk to local residents and businesses #1 Way to Invest in the #1 Investment inits citizens looking for better schools, bet- and ask about plans for the future. The lo- America,” is conservative and very disci-ter shopping and newer recreation facili- cal residents know what is being planned plined. It is designed to avoid common mis-ties. Corporate America also searches for by reading their local newspaper. It costs takes and protect your investment. Faith inurban flight and growth to determine where money to do research, but the reward will yourself begins with having faith in some-they are going to expand and build those be a pay back for many years to come. thing or someone that has stood the test ofnew superstores. County governments usu- Because the demographics change over time. The advice in my book was inspiredally lead the way by identifying urban ar- time, it is always advisable to return to the by every mistake I made in real estate foreas that are primed for growth. They fund TenPercentDown.com website to locate the the past 30 years. I wrote it to save you thenewly created redevelopment areas, which new areas of interest and see a selection of headaches and heartaches I’ve endured ininclude new roads, freeways, industrial homes in the 10% growth areas. Also, the the quest for real estate success.parks and schools. That attracts major re- tax benefits may change over time. Despitetailers and businesses. the fact that you are only putting 20% down Register online at www.TenPercentDown. In looking for growth that will support payment and using 80% of other people’s com for complimentary reports on anymy 10% property appreciation objective, money (OPM), you’ll enjoy 100% of the areas the company is buying in and/orI am a follower, not a leader. Corporate tax benefits. For example, you can depre- researching. For more information aboutAmerica and local governments determine ciate your investment property over 27.5 Charles Salisbury, please contact himwhere it will be and create the growth mar- years, deduct the interest on your mortgage directly at: 949-910-6028Realty411Guide.com PAGE 24 • 2011 reWEALTHmag.com
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    • Y ou’ve gone to the seminars. fears. You have reasonable concerns. Let’s My Property — Oh, No, It’s a Wreck You’ve bought the courses. address your concerns. The other big fear is the property itself. The You’ve dialed in for numerous seller promised you that it is a “fixer-upper webinars. You’ve bought and read Not Enough Money, Honey? in a transition neighborhood in Detroit.” Youthe books and magazines. You’ve talked with Money is a big concern for many start- bought it without even flying out to see it.your friends, your spouse, and even local ing investors, and quite legitimate. Let’s talk Now, the contractor tells you the repair costsREALTORS®. Yet you still have not bought straight for a few minutes. Real estate is not have tripled and the local realtor says the rentyour first investment property. Why not? a get-rich quick scheme. If you do it right, it is 50% less than the seller promised you. can be a get-rich slow scheme. Also, invest- Concerns about the specific property are Why is it so Hard to Get Started? ing in real estate is not for people with “no legitimate. Here again, information and How about a one-word answer: Fear! money, no credit, and no job.” No matter knowledge will reduce any fears. To start What are you afraid of? For many new what you read or hear from so-called experts, your learning process, refer to the articles oninvestors, the fear is captured in the two pic- real estate investing requires some capital. our website (www.RBSHomes.com).tures below. Which one captures your fears? So, consider these simple guidelines before Some typical concerns include: you buy investment property. •Current economic (cash flow) value Where Did My Money Go? First, build your cash reserve. You need •Long-term real estate forecast for the spe- This article has more questions than an- enough cash to cover at least six months of cific metro areaTake the Fear Out of Real Estate Investingswers, because only you know why you have expenses. In the course of your life, you will •Neighborhood — schools, jobs, and eco-not yet started. We hope this article pro- definitely live through a few financial set- nomic levelvides some insights and suggestions to backs. Only ready cash can get you through •Property condition and rehab needshelp you get started on a path that will these difficulties. Build your cash reserve •Tenant and property managementprovide long-term financial safety, se- and keep it.curity, and the freedom to enjoy your Secondly, invest only 10-25% of What if Property Values Drop More?life. your nest egg in investment property. How do you know that property values First, invest in information and Real estate is not liquid. This is ac- have reached the bottom? This is a healthyknowledge. Fear often comes tually an advantage, as it protects concern, and you can resolve this questionfrom the unknown, so a good your investment from the three in- reasonably well for any specific property.cure for fear is knowledge and vestment vampires: inflation, taxes, Read on our website: “Under Construction;information. Even though we joked and transaction costs. See our article the Next Housing Shortage and Nationalabout attending seminars and read- online (www.rbshomes.com) to learn Market Stabilizes at a Bottom.”ing books, knowledge is critical. Our how to protect your investments from In 2010, over 33% of all home purchaseswebsite contains a number of educa- these vampires. were all cash, which is a strong indicator oftional articles on real estate invest- When you buy a property, plan on investor buying. But each metro area andment. keeping it for at least ten years. If you each neighborhood is different. Learn the lo- Also, remember that real estate is plan to buy an investment property cal market before you invest.local. After you learn about real estate worth $100,000 with a 25% down pay-investing in general, study specific markets ment, you will invest $25,000 or so. That And Lastly, a Few More Things to Fear.thoroughly. Search the internet and study to means you need a total investment portfolio Fear can be good when it motivates youpick strong metro areas for investment. Read of $100,000 to $250,000. to avoid a serious problem. Remember thatthe article “Where to Invest” to learn how As you increase your experience and skill waiting is actually a decision. Are you satis-and why to choose the best metro areas for in real estate investing, you may choose to in- fied with a return of 2% on your cash, whenlong term investment. Then call realtors and crease your total allocation to real estate. But it could be earning up to 10% or even 18%experts in those areas. In- first, start small. for you. When inflation climbs to 5% or evenvestigate the seller. Your concerns about fi- 10%, which investments will protect your If you are buying proper- nances may be well ground- nest egg? Read Major Investing Risks andty remotely, you must rely ed. Do you have a six month One Big Decision for this Decade to learnheavily on local experts. cash reserve? Do you have more about the investment vampires.Buying from a local seller an investment nest egg of A healthy fear of taxes and inflation maymakes sense, but investi- $100,000 or more? motivate you to get started soon. Only yougate the seller thoroughly. If not, build those first can create a strong, safe financial future forFinally, fly out to see your before buying investment you..property and meet the sell- property. If you don’t haveer. A plane trip is much cheaper than buying enough money to make the investment, then Yours in a solid financial foundation,a bad property. don’t do it yet. Once you have built those Richard Barrett Now that you have invested in information funds, then you have the resources to start in- 888-666-6402 | Richard@RBSHomes.comand knowledge, you don’t have any more vesting in real estate.Realty411Guide.com PAGE 27 • 2011 reWEALTHmag.com
    • Flip & Hold by Lori Greymont The New, Mature Strategy financed loan than one who has invested reputable brokers can arrange for two or three glowing references…but five, now that is difficult. Be certain to ask the refer- ences how they are related to the broker. If they are family, have a financial stake inT only money. Meanwhile, the investor’s out the broker’s company, or receive a referral o the buy-and-hold versus fix- of pocket is limited to the purchase price fee, beware. and-flip investment models, of the property, selling expenses, and insur- Also beware of strangely negative in- let’s add one more: flip-and- ance. As for delinquent tax bills and other ternet reviews about a list broker from hold. Buy-and-hold typically liens, those become the responsibility of anonymous sources. Some racketeers referrers to owning rental prop- the new homeowner and are negotiated as post false negative claims under assumederty. The landlord has the responsibility of part of closing. names. How do you know who to believe?maintaining the property and receives rental How do the actual homebuyers feel Use the telephone. If you can’t reach a liveincome. In the fix-and-flip model, the “fix” about purchasing a seller-financed home? reference, you haven’t done your due dili-is essential. An investor using this model Velma Williams of Chicago, said to her gence.typically invests in property repairs in order seller “I never thought I could own a home. 2. What services does the broker offerto gain top dollar at sales time. It just needed a little work. I feel so blessed to clients? All brokers make some kind In a flip-and-hold investment, the inves- I mentioned you in praise time at church.” of commission, but those that add com-tor sells the property without performing Even with monthly payments pegged mission without adding value are to berepairs and holds the paper (that is, holds to 70% of actual rent in an area, and the avoided.the deed while receiving installment pay- psychological incentives to make loan 3. Deal with top tier brokers. Top tierments). This is a seller-financed or land payments, some homebuyers fail. In that brokers are one to two steps away from thecontract sale. When seller-financing ties up instance, since the seller holds the deed, deeds to the properties and that much clos-a large amount of cash on a single property, a simple eviction is all that is required in er to delivering lists with fresh properties.it may not be the best income producing most areas to recover the property. Because REO properties don’t just grow stale, theystrategy. However, let’s look at this strat- of homeowner repairs, the property is often rot. The longer a house sits on a list, theegy in the context of inexpensive bulk REO resold in better condition than when it was longer it is vacant and attracting undesir-properties. originally purchased by the investor. able attention: code violations, vandalism, When purchasing these cheap properties With the flip-and-hold strategy, the in- and physical damage from lack of main-(and by cheap, we mean $10,000 or less vestor spreads his risk over a large number tenance. If you are offered a list of 300 oreach — no that is not an error — ten thou- of properties and stands to realize 15 to 30 more properties, most likely those prop-sand dollars or less each) why not fix and years of cash flow at 9% or more interest. erties have accumulated over a period offlip? For two reasons: financial and psycho- Investors who prefer a more passive role, time from a variety of sources AND theylogical. but like the strategy, can purchase seasoned are old. This doesn’t mean they’re all bad, The type of home purchased for $10,000, land contracts at a discount. They simply just know what you are buying. Anotherwhen fully renovated, might be valued at hold the paper and receive the cash flow. way to ascertain the quality of a broker, is$30,000 to $45,000. Still sounds like a deal, However, as with any high-reward in- to spot check one of the lists. How manyright? The problem is that no likely buyer vestment, there is risk in bulk REOs. entities have owned a particular propertywill be able to purchase the property at that Worse, anyone with an internet connection since foreclosure? If there are more thanprice. There are no mortgages available for can claim to have the inside track while de- two, the property has been bounced fromunder $60,000 — even for a working per- faming legitimate businesses. The internet asset manager to asset manager. Not ason with perfect credit. There just aren’t. is full of web sites purporting to sell bulk good sign.So that means the house you spent working REO lists (also called bulk REO tapes); 4. Use escrow. Only deal with brokerscapital on painting, carpeting, and rehab- however, some of these lists are fraudu- who are willing to place your money inbing cannot be sold. The best outcome in lent, and others contain truly unsellable escrow to be disbursed upon delivery ofthis scenario is that the house is rented, and properties—burned out shells, vacant lots, deeds or affidavit of sale. Reputable com-you assume the inherent problems of rent- and uninhabitable mobile homes. Charla- panies use escrow. Why would you settleals in low-income neighborhoods. This is tans make a living sounding convincing, so for less?the financial reason not to fix a bulk REO how do you weed out the racketeers from Lori Greymont is CEO of Summit Assetshouse. the reputable? Group. She offers educational presen- The psychological reason not to fix a 1. Get references. Speak with three to five tations around the U.S. plus trains and$10,000 house is based on the psychology individuals who have purchased lists from mentors people new to bulk REOs. Herof the buyer. A homeowner who invests the broker you are investigating. What company sells bulk lists and seasonedmoney, labor, and love into their home made them happy with their experience land contracts. For more information, callis less likely to walk away from a seller- and what left them dissatisfied? Even dis- 1-888-440-6826.Realty411Guide.com PAGE 28• 2011 reWEALTHmag.com
    • Investment Property $24,995!!!! With Rental & Maintenance Guarantee ese homes are CASHFLOW machines! ese are NOT xer-uppers! ese homes are already rented! For information, please contact:Ismet Jahovic, Investment Specialist, 408.369.9832Matt’s Foreclosure Home Buying Secrets purchase online at: mattsforeclosurebook.com Write a testimonial and receive a complimentary FREE workbook on achieving your goals, great for any business... call to learn how! NEW Investment Program...A real estate training program that will includean investment property with the training!Only 7 investors who want to take action will be accepted.(mention code RP2R2010 to get an application) 562-443-7042 Award Winning National Relocation SpecialistMost Outbound Referrals for Prudential CA. Realty 2009 Matt Malouf, SFR, RSPS, GREEN investwithmatt.com Lic # 01811908
    • Market Spotlight: DAYTON LOCATION: Dayton, Ohio COMPANY: process easy and simple for the out-of-area Revival Property Group investors. When you are buying a rental CONTACT: property from Revival Property Group, Brad Boehmke LLC you will be buying a fully turn-key ph: (937) 252-8764 investment. We will have already fully re- RevivalPropertyGroup.com modeled the home and our property man- agers will have tenant in place or lined upQuestion: How is your market handling to move in, so you can start earning yourthe economic slowdown? return the day you close.Boehmke: Dayton began the slowdownearlier than other parts of the country due Question: What makes your companyto rise in unemployment. This area did not unique?have the over-investment and speculation them honestly evaluate properties before Boehmke: We specialize in providingof other areas, like Florida or the South purchase. Even better, investors consider- fully turn-key investment properties inWest. Statistically, the Dayton area is see- ing buying in another city/state should visit the $30,000 to $40,000 price range. Manying some recovery. In 2010, the number to observe first-hand the various neighbor- investors find it hard to believe that youof residential listings hoods and types of properties available. can buy this cheaply, but Dayton is a verywas down, but sales unique market. With the economic down-were up slightly. Question: What is the best part of being turn and a result of extensive predatory For people seeking an investor in Dayton, Ohio? lending, there has been a large supply ofprimary residences, Boehmke: I’d have to say phenomenal re- foreclosures.tight lending standards turns and a great tenant client base. There When we first started, we were likehave locked many out is a very large Section 8 rental market here. most investors; we were mainly looking toof purchasing creat- If you are able to offer a well maintained buy and hold many of these foreclosuresing a large demand three plus bedroom home for Section 8 for long-term gains. However, we startedfor well-maintained renters, you are guaranteed to have it rent- meeting investors that were out of staterental homes, espe- Brad Boehmke ed quickly and for maximum market rent. and they had tried to purchase these cheapcially with three plus homes, manage the rehab, and find qualitybedrooms. There is also a very large de- Question: Why should investors from afar property managers from afar. And, rarelymand for well-maintained rental homes for invest in your area? were they successful. They either bought aSection 8 renters. It is recommended that Boehmke: Your dollar has four times the property in the wrong location, were rippedinvestors consider buying with the intent to buying power here and the returns are dou- off by illegitimate contractors or had poorrent, at least for a couple of years. If fair ble most areas. There are very few areas quality property managers. Inevitably, theymarket resale is the goal, investors should across the country where you can purchase would come to us for help. This was whenplan on maintaining the property for at a fully remodeled investment property we found our niche in the marketplace. Weleast 90 days after listing for sale. for $35,000 and immediately have rental decided to start buying up a few extra prop- It is imperative that out-of-state inves- income of $650 coming in from day one. erties per month and use our contractors totors have someone “on the ground” to help The best part is we try to make the entire rehab them. Then we used our high-quality be this simple & i imple! It can t should be this s RPG Revival Property Group, LLC Real Estate Investment Services 937.252.8764 www.RevivalPropertyGroup.com Revival Property Group, LLC specializes in producing turn-key invest- ment property without losing the equity. We concentrate in acquiring under-performing residential real estate in well established neighbor- hoods in the Dayton, Ohio area. We have rehabbed everything from 300 sq. ft efficiency apartments to 5,000+ sq. ft high end homes.Realty411Guide.com PAGE 30 • 2011 reWEALTHmag.com
    • property managers to get them rented. We of the rehab on a weekly basis to provide the typical appealing amenities (basementwork a lot with Section 8. Although the pro- you status updates. Then towards the end or garage, central a/c, approximately 900gram requires strict rehab guidelines, our of the rehab, we start to get the property to 1,500 sq. ft, etc). We usually go intocontractors and property managers excel at manager involved so they can start ad- these houses and, if they are not alreadymeeting these strict requirements and get vertising for tenants the day the rehab is updated, we’ll update the flooring, kitch-through the inspection process quickly. Our finished. en, bath, windows, roof, HVAC, plumb-goal is to get them occupied as fast as pos- For our fully rehabbed, turnkey proper- ing, etc. Our homes have fully updatedsible. We then offer these properties for sale ties we always offer free property man- systems (heat, plumbing, electrical, etc)in the $30,000 to $40,000 range and many agement for the first year. Once we close and completely updated cosmetics by theof our out-of-state investors and some local on the property, we will pay the property time our rehab team is done.investors, start jumping on them. We start- management company for the first year so We then rent these homes to Section 8ed this back in 2007, and it has been going that you can have the highest investment tenants or retail blue-collar tenants forstrong ever since. return possible during that first year. We $600 to $700 per month. These homes will Since we have been perfecting our re- also offer other monthly incentives for have taxes around $100 per month and in-hab process and also our tenant occupying buyers. Sometimes we’ll offer two years surance at about $35 monthly. So you willprocess we are able to turn properties very of free property management. Or we offer net on average about $500 per month onquickly. $1,000 of maintenance funds returned to the rental income. Most of our rehabs take two and three you at closing, which can be used for any If you are purchasing one of our homesweeks and we usually have a tenant lined future maintenance needs or put towards for $30,000 and you net $500 monthly orup to move in the house within 20 days after your next investment purchase. $6,000 per year that is a 20% ROI. Mostwe finish the rehab. There have been times of these properties will have $20,000 towhen we have a tenant lined up to move Question: What is your real estate phi- $30,000 in equity as well. These are greatin the weekend after the rehab is complete! losophy and management style? investment properties in good, solid blue-The benefit to our investors is we are able to Boehmke: We purchase a lot of properties collar neighborhoods. This is the breadoffer great, fully rehabbed investment prop- to hold long term. Many of the properties and butter of real estate and not only do weerty for very low prices with strong equity. that we buy and hold are the same type of sell these to investors, but we also believe On top of that, the majority of the time properties that we offer as turn-key prop- in the product so much that we continue tothe tenant in the home is Section 8, which erties. I enjoy telling many of our inves- buy more each month.provides a level of certainty to the buyer tors that the house they are purchasing is In Dayton, your objective should not bethat the rent will be on time. Plus, due to right down the street from a rental house to buy and flip for hundreds of thousandsstrict Section 8 requirements, the buyer will that we own and intend to own for the of dollar profits. Instead, Dayton is wherealso know that the rehab completed on the next five to 10 years. This gives them con- you put your money to make Warren Buf-house met very high demands and has been fidence that they are not buying in a poor fet style returns. You buy properties withthoroughly inspected. And the final benefit quality neighborhood. strong, consistent revenue streams forto the buyer is we have one of our indepen- A typical home that we specialize in is great year after year investment returns.dent property managers already managing a three to four bedroom ranch home withthe property. So when the buyer purchasesthe property there is no change in manage-ment, which keeps any tenant disruptionsduring an ownership change to a minimum. GreenBlasts.comAlso, the two property managers that weuse are two of the highest rated and mostprofessional companies in town. Buyers can rest assured that the sameproperty managers who we entrust our Instant, Trackable & Greenown long-term rental investments to are thesame managers who will be handling their With Nearly 200 Million Single Opt-In Emailsproperties. We Have Access to the Largest Database in the Entire Real Estate IndustryQuestion: What type of incentives do youcurrently offer investors? Fully ICAN SPAM Act CompliantBoehmke: Sometimes we offer investment We Can Design Your HTML Blastproperty for sale that is not fully turn-key.On these homes we offer free rehab man- Call for a SPECIAL Discounted Rateagement. This means we will bring in our 310.439.1145 | greenblasts@gmail.comown contractors to get bids for you, help Reach Consumers & Businesses | Fax Blasts Now Also Available!you select the best bid and manage the con-tractors throughout the rehab process. Dur-ing this time, we take pictures and videoRealty411Guide.com PAGE 31 • 2011 reWEALTHmag.com
    • Multifamily Deals: Why They Make Sense for Today Multifamily Real Estate by Karen Baggett Emerge Investments, LLC Why multifamily properties? As the above media excerpt A Investment Company partment living is notes, the timing is ideal to in- vest in multifamily properties, on the rise with as this recession has turned echo boomers, many owners into tenants. Ex- foreclosures and perienced investors understand economic uncertainty. So, if that apartments offer less risk you’re looking for high yield and more stability than single- returns and a secured real estate family rental properties. With a investment, multifamily prop- single-family rental, when you erties present a unique invest- lose one tenant, you now have ment opportunity. Multifamily 100% vacancy with no source investments with apartments in of income to pay the mortgage. “The markets for rented and purchased homes usually move in opposite directions. When the Emerge Investments, LLC is a private equity housing market is hot and more people are buy- firm specializing in multifamily acquisitions with ing homes, rents tend to stay low... But when high yield returns on your investments high interest rates, or other factors cool the housing market, more people rent. Since it takes a while for builders to add more units, the supply-demand mismatch drives rents up.” -U.S. News & World Report, March 28, 2011 + Protect and preserve capital Integrity + Using your IRA or 401 (k) You stable, high-growth locations With a 200-unit multifamily Expect, offer less risk and more stabil- property, you can lose 20 ten- for real estate Results ity than single-family rental ants and still be 90% occupied + Successful track record You properties — without having with the ability to pay your for high yield returns Deserve to deal with flipping, rehabbing mortgage. With larger prop- and dealing with tenants. They erties, we can also obtain a + Maximize investments also offer less risk for vacancy, non-recourse loan. This means through value play and creative cash flow that begins when es- a personal guarantee is not re- opportunities crow closes and an investment quired for the loan. The loan in an area where demand is is based on the performance of + Over 25 years in real estate, higher than supply. Plus, inves- the property. development and commercial tors typically receive distribu- How can you own a 200- tion checks once per quarter. unit apartment complex and construction And in many instances, a per- never deal with tenants? A sonal guarantee is not required professional property manage- for the loan. What more could ment company is key, as they you ask for? oversee the day-to-day opera- Karen@EmergeInvestmentsLLC.com Passive cash flow means, tions and deal with the tenants. Stan@EmergeInvestmentsLLC.com PASSIVE. Sit back and enjoy With weekly management and life while money comes to you.Realty411Guide.com PAGE 32 • 2011 reWEALTHmag.com
    • monthly financial reports, we have our pulse ing a check from your real estate in- providing high yield returns without forc-on the status of our properties without the daily vestment with none of the headaches ing them to ever deal with toilets, trash orheadaches. of dealing with tenants. tenants. We only buy properties that make fi- The firm currently owns more than 900 Which multifamily properties work best? nancial sense the day we buy them. We apartment units in several key U.S. loca- We buy properties in strong rental markets don’t buy hoping the market or prop- tions — all hand-picked for their favorablewith a three to five year hold. A strong income erty will increase in value. When the rental climates. With more than 27 yearsproducer with good appreciation market or prop- experience in commercial construction, de-is our criteria to increase wealth. erty does increase velopment and real estate, Emerge Invest-We buy properties in strong in value, this is an ments has worked with companies like Petrental markets, and for the last added bonus on Smart, KinderCare Learning Center andfew years, we have focused on top of an already U-Haul.Texas. cash-flowing in- Are multifamily investments right for We have a nice niche with vestment. One your portfolio? Visit our website and signproperties of between 150 and of the perks is up for our newsletter to find out. You’ll re- Karen Baggett with Stan200 units. We look for multi- the being hands- ceive the latest information on the multi- and Donald Trump’s attorney.family properties with some free from daily family market nationwide, along with thevalue-added component, such as m a i n t e n a n c e . type of properties the company is buying.minor cosmetic upgrades. A complete rehab is Emerge Investments, LLC, a privately For more information, please contact:too risky and requires more cash to cover costs held real estate investment company, Karen Baggett at 949-481-0011 orwhile the rehab is in progress. Once we have provides passive cash flow investment Karen@EmergeInvestmentsLLC.comthe property looking better inside and out,we opportunities for accredited investors, www.EmergeInvestmentsLLC.comcan begin to increase rents. This flushes out thequestionable tenants and maintains the tenantswho prefer a high-quality property. Our last ac- “Real estate is at the core of almost every business, and it’s certainlyquisition was the 165-unit Crystal Falls apart-ment complex in Houston. It has been a very at the core of most people’s wealth. In order to build your wealth andstable property with immediate cash flow the improve your business smarts, you need to know about real estate.”day we closed escrow. — DONALD TRUMP, “Think Like a Billionaire” Why Texas? The population in Texas has increased 17%since 2000, and the schools expect their en-rollment to jump another 15% in the next fiveyears. Texas offers the job stability with thediversification in employment. Texas is top inthe Unites States for energy utilities, aerospace,and medical. It’s also home to many of the topForbes 500 companies. This combination ofdiverse industry resulted in some of the low-est unemployment in the U.S. during the lastseveral years. The state population has grownby 17% since 2000, yet has maintained stablerents and a relatively low unemployment rateof 8.3%. How is ownership structured? Investing in multifamily is more about buy-ing into a business rather than buying a pieceof real estate. Equity investors are buying unitsof an LLC, which has the sole purpose of own-ing one apartment property. The LLC is struc-tured with an Operating Agreement and PrivatePlacement Memorandum, which are preparedby our SEC attorney. The Private Placement Memorandum willoutline exactly how your investment will run.We typically provide investors with distribu-tions checks four times a year. Imagine receiv-Realty411Guide.com PAGE 33 • 2011 reWEALTHmag.com
    • Achieve your retirement dreams through smart leveraging and simple investments Invest on Auto Pilot by Anita CooperT he statistics about women under Michelle’s tutelage learn about smart ing a payment of $1,017 per month on the and money are sobering. leveraging techniques and how to have land, she still has a cash flow of $372.75 in According to the National clear and specific goals for their retirement. her portfolio. She will also realize some Center for Women and Re- They learn how to devise a simple, easy- tax savings on the income because of the tirement Research, 75% of to-follow plan that they can comfortably depreciation on the rental properties. Using women are widowed at the execute. the methods that Michelle has taught her,average age of 56, and one in four of these Your goals need to be kept in mind when she will use the extra cash flow towardswomen end up broke within two months of reviewing your retirement portfolio. Mi- paying off the land. In less than 11 years,being widowed. chelle advises her clients, “Let’s get every- she will have saved over $50,000 in inter- At some point in their life, 90% of wom- thing in order, put it on auto pilot and then est payments.en will be solely responsible for their fam- check on it to make sure that the assets are Women are the focus of Michelle’s men-ily finances. As of this year, women control making the returns you need so you can toring programs, however she has success-the majority of all the privately held finan- reach your goals.” If the returns won’t take fully coached both men and couples. Onecial assets in the United States. them to their retirement destination, Mi- couple came to her with an old 401(K) from A survey taken by the Transamerica chelle shows her clients how to sell under- the husband’s previous job. My Wealth SpaCenter for Retirement Stud-ies found that “three out offour women admit that they As of this year, women control the majority of all thedo not know as much as theyshould about retirement in- privately held financial assets in the United States.vesting, and half said theyare not confident in their ability to retire performing assets and buy ones that will moved all of his funds from the 401(K) intocomfortably.” help them achieve their objectives. a self directed IRA, and then into a check- Michelle Shaman is a native Californian Coaching women to invest wisely book IRA LLC. This allowed them to com-who has been personally involved in real through her smart leveraging program, bine both the old 401(K) and other IRAestate and investing for more than 20 years. Michelle’s clients have seen amazing re- accounts in order to purchase allowableMichelle strives to empower women with sults, in a relatively short amount of time. assets in the LLC. The setup process andthe investment knowledge they need to be Michelle shares the success of two of her money transfer into the checkbook IRAsuccessful in securing their own future and clients: LLC took about three months. Once thethe future of their families. Through her After taking a hit from the stock mar- funds were available, two parcels of landsmart leveraging program, Michelle shows ket, a client came to My Wealth Spa with valued at just over $500,000 and six rentalwomen how to take control of their own $160,000 left in her portfolio for invest- houses worth $300,000 were purchased.assets, allowing them to relax and enjoy ing. After consulting with Michelle, her The rental houses provide a cash flow oftheir lives, focusing on what matters most portfolio grew to approximately $543,960. $2,500 to $3,000 monthly, depending uponto them. Capitalizing on the client’s good credit, My the rents and the land payment is $2,549. Retirement by default is easy. It takes no Wealth Spa put together a wealth recovery The IRA LLC’s assets are valued at moreeffort, you simply place all of your trust in plan that allowed her to purchase assets than $800,000, however the cash spent wasothers to control your assets; others who that will accrue in value over the next 10 only $453,900.have much less incentive than you do to years, without requiring any additional Michelle’s passion is to play a part in themake sure your retirement funds are de- contributions. success of her clients, “The greatest feelingsigned to meet your retirement goals. And In two months’ time, Michelle’s compa- we get is when the client refers a familyyou pay them a fee, whether you make ny had chosen, purchased and established member for us to work with. It is excitingmoney or not. income generating investments, including a to be able to be able to work with multiple Utilizing well-crafted investment meth- piece of land for $165,000, one duplex for generations of a family.”ods that she shares with her clients, Mi- $82,500 and three single family homes for For information about Michelle Shaman,chelle helps women to create a retirement $230,300. After debt service, the income who also happens to be a licensed pilot,by design, rather than by default. Women from the properties is $1,390. After mak- please visit: www.MyWealthSpa.comRealty411Guide.com PAGE 34 • 2011 reWEALTHmag.com
    • an End in 2012? by Sam Sadat, founder of Sam’s Real Estate Club of Los AngelesW radical adjustments e live in a time of turmoil like these, it would ap- in our lives to bring and uncertainty. There’s pear that there is little about massive results. no denying most Ameri- chance for good, hard Instead, all we need cans are hurting these days. working people to im- to do is make smallMany people live in fear of what the future prove their lives. But changes in manymight have in store for them. let me introduce you to aspects of our life. Millions have lost their jobs, their a Universal Law: Good Things like watchinghomes, their savings, or their stock port- will always prevail. less bad news, work-folios. The consumption of alcohol, drugs The bad guys may win ing a little smarter,and medication are at all-time high. Gun a few battles, but the expanding our per-shops and safe makers are reporting record good guys always win spective, doing somesales. Doom and gloom is the atmosphere the war. It may take a random acts of kind-of the day; many people are even dread- while, but Light will ness, taking a standing (or welcoming) the end of the world on conquer darkness. for what we believe,December 21st, 2012. Some time ago, I or overcoming one But I have good news! Human history is began reading about of our fears. Any offilled with ups and downs, with endless cy- Chaos Theory and the Butterfly Effect. You these things can put in motion the Butterflycles of booms and busts. In fact, there have may have heard about it or may even be fa- Effect. If you take personal responsibilitybeen many times when people lost hope miliar with this notion. Edward Lorenz, an to diminish the negativity in your life, youand prepared for the end of the world. The American meteorologist and the father of could have your own thunderstorm of hap- Human history is filled with ups and downs, with endless cycles of booms and busts.only difference now is that, thanks to the Chaos Theory, once said, “A butterfly flaps piness and prosperity.media, the “bad news” gets around much its wings in the Amazon and two years later For the past eight years since I startedfaster these days. Fear can there is a thunderstorm in Kansas.” my real estate club, Sam’s Real Estate Clubspread like wildfire, even Lorenzehad come up with of LA, I have been hard at work convey-when there is nothing to be a series of mathematical ing this message in different ways to all theafraid of. equations predicting the good folks who attend my monthly meet- My feeling is that the end of weather, but to his chagrin ings, seminars and workshops. My goal istimes in 2012 is as real as the things didn’t always work to affect positive change in the lives of asY2K scare was 11 years ago. out as determined by his funda- many people as possible. I know it’s notHumanity may be woefully mentally accurate formulas. He easy to combat the constant propagandaignorant and flawed, but on finally concluded that the nature and fear mongering of the media, but wethe whole, we still carry of existence is chaos, and order have the power of the Universal Law work-enough positive energy to is the dream of man. He further ing in our favor. It may take some time, andoffset all the negativity realized that the slightest change it may take lot of effort, but I trust that atand darkness reported in in the initial conditions, something the end we will once again make this coun-the media. I am confident as simple as a passing cloud, could try a beacon of hope that inspires all of hu-we’ll manage to stick result in a massive change in the fi- manity.around on this planet nal outcome. As always, I welcome your comments.and thrive for many The reason I am so optimisticmillennia to come. about our future in America, and To contact Sam Sadat, email him at: Sam@ Nonetheless, I un- in the world as whole, is my firm samsREclub.com or visit www.samsREclub.derstand that in times belief that we don’t need to make com. You may also call 800-998-9930.Realty411Guide.com PAGE 35 • 2010 reWEALTHmag.com
    • I n today’s economy, many have lost work with someone that you “click with” paying down your next rental. Your exit their home to foreclosure and can’t and have a good feeling about. I also am a strategy with this type of home is to hold buy a new home…they become ten- firm believer in “gut instinct.” it FOREVER and keep collecting the cash. ants. In the last three years, if you Sell it to the tenant occupant or another in- could fog a mirror, you could get a Location, Location, Location vestor when you are done.loan with zero money down and sometimes Our TURN-KEY RENTAL program isget money back! It’s been said many times but it’s so true: the lowest possible RISK. It is as simple as Thank heaven those days are over, When investing in real estate, you need to purchasing a completely rehabbed home,and you now really have to qualify for a focus on an area with a history of stable and we will sublease it from you for five-loan. With the increase in qualifications, housing markets, jobs and economy, which years. We absorb all maintenance and turn-home loans are more difficult to get, which all equate to location. over costs; thereby, making landlording ef-means these people are tenants again! With property values across the U.S. fortless for you.Rental homes are in DEMAND and there at an all-time low, there is no better time This program is designed as such thatis no better time than now to begin to grow to start building your real estate portfolio. you have no unexpected expenses. Can ityour real estate portfolio! We’re starting to see a slow, yet steady get better than that? Selecting “THE” provider to help you housing recovery, which reinforces my Your TURN-KEY RENTAL homeachieve your real estate and investment personal theory of buying and HOLDING should boast a minimum of 3 bedroomsgoals can be daunting at the very least. real estate. and be in the median sales price range ofWhether you’re a fledging or seasoned in- Speaking from experience, I prefer sin- homes in that area you’re investing in.When Investing in Real Estate, you need to focus on an area with a history of stable housing markets, jobs and economy, which all equate to location!vestor, it can be a difficult task choosing a gle family homes in lieu of multifamilies as Three or more bedrooms is suggested asprofessional and reputable provider to help rental property. The appreciation grows at a that’s what the average home buyer is look-you with your investment objectives. quicker rate than multifamilies and single ing for. Why median sales price? When families are easier to rent and sell. With you want to sell your home, you have not Where to Start the multis, investors are generally the only only the investors market to sell to, but also group interested in buying when it comes the homeowners. You have a property that Selection Search will be in demand. These properties typi- time to sell. cally generate a lower cash return, but areA valuable tool is to contact educational in high rental demand.groups because they tend to thoroughly Low Risk Investing We look for desirable locations that arescreen their providers. Often times, the accessible to interstates or job demand,groups have already done some due dili- I suggest diversification, such as some school district ratings based on rental val-gence for you with performing background CRAZY CASH FLOW houses and some ue, accessibility to shopping, parking andchecks on the providers. They may be nice TURN-KEY RENTALS for later re- busy streets.aware of the growth of their business and sale in the median price range in the com- Finally, we try to buy our resale/rentalsthe extent of what they can offer investors. munity where you are buying. in neighborhoods that are primarily “owner Then, it’s time for your due diligence: What are crazy cash flow homes? These occupied.” Again, it makes them more de-How long has the company been in busi- are homes that are located in areas that have sirable to the tenant, and when we go toness? Is their company growing? low prices. They generate a 10% to 50% resell, the values are more stable. Are they just selling you a property or cash-on-cash return. They are often sub- The balance of great cash flow and mar-do they provide the entire package? The sidized housing such as Section 8. If you ket stability gives you a balanced portfolio,property inspection and condition report, pay $50,000 for them today, in 10 years, one that will cover your expenses if youan experienced real estate agent, financing they will still be worth $50,000. Your goal have vacancy or maintenance. One that willoptions, title agency and a crucial part of is to take the crazy cash flow you get each grow in value to increase your net worththe puzzle, which month and quickly pay off your invest- and cultivate and solidify your investmentis the property ment. portfolio.management. They are not typically a home that My next article will cover how to choose If the provider would be resold to a homeowner. They a property management company.has passed your are investments. What they do is gener-research with fly- ate lots and lots of cash flow. Many in- To Your Success!ing colors, it’s vestors call this “trash flow.” Take the Missy McCall Hammondsalso important to cash flow you are generating and start www.RetireWithRealEstate.bizRealty411Guide.com PAGE 36 • 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 thatyou have worry-free rentals. Our repeatbuyers are our proof! ” – Missy McCall Hammonds, CEO Do you have questions? Contact Missy directly: JustAskMissy@aol.comRetir eW ithRealEsta te.Biz
    • Meet the Coach Dr. Tingley mentors students & helps them achieve success by Lori PeeblesF to him for mentoring, he also coaches for but they soon had a change of heart. “Af- or the past 31 years, Dr. Fred Tin- students of Armando Montelongo. Dr. Tin- ter the crash, my partner came up with this gley has been learning to master real gley says that juggling his own real estate idea,” Tingley recalls and adds that green estate investing. One of the ways he investments and mentoring students around energy is a promising new venture with alearns and keeps up with changing times is the country is exhilarat- great future.by being a mentor to a new generation of ing. “Every day is differ- Real estate investors whoinvestors. ent, he says. “It has made want to learn more about Dr. Dr. Tingley, who holds a juris doctorate it very exciting.” Tingley’s investing philosophy,degree, has been coaching students around Dr. Tingley has coach- can read his renowned book,the country from the past 16 years. He says ed for many of the top “The Real Estate Investor’sthe best part of teaching is “when students real estate educators in Guide,” which is available forsuccessfully conclude their transactions the nation, including purchase on his website.and they start making money.” They be- such legends as Al Lowry, A.D. Kessler, For Dr. Tingley his career in real estategin to see how real estate can change their Carlton Sheets and Robert Allen. Although has taken him though peaks and valleys,lives, which as a teacher makes him feel real estate investing and coaching take up yet by staying on the path it helped himthat he accomplished his role. the majority of his time, he also found time reach success. He says his real estate ven- Every mentor has a niche and for Dr. for his new pet project: green energy. tures have allowed him to live very well.Tingley his expertise is structuring lease “I am currently working to develop a And while Dr. Tingley admits materialoptions as well as buying and flipping solar energy plant,” he reveals. Of course, rewards are just one of the perks, for himproperties. He also advises his students to real estate is also the foundation of that the idea of leaving a legacy of experience“own rental properties for constant cash project: “It’s on 120 acres in Nevada.” to his students is the real treasure.flow.” Originally, the acreage, which is owned To purchase Dr. Tingley’s book or learn Coaching keeps Dr. Tingley very busy. by Dr. Tinley and his partners, was going more about him, please visit:Besides handling students that reach out to be developed for a 500 lot subdivsion, www.RealEstateInvestorsStore.com Real Estate Investors Store Ways to make money through investing! Why The Real Estate What we can o er you: Who is Fred Tingley? Investors Store? A chance to place yourself at the Dr. Frederick Tingley has been Chances are youve thought about forefront of a giant wave of an investor for 30 years and a ways to make more money. Your opportunity in real estate investing, coach for the last 15 years . Dr. job isnt covering all of those sweeping across America and make Tingley is wiling to take on expenses nor is it getting you to an unbelievable income! students on an individual basis. those dreams you have of paying One of the nations most sought a er your kids college education, real estate experts , Fred Tingley, traveling and building a bigger will give you the motivation and his and better home or simply unique perspective on how to get retiring in the style to which you always have imagined. started. For more info call: 801-294-7015 visit: RealEstateInvestorsStore.comRealty411Guide.com PAGE 38 • 2011 reWEALTHmag.com
    • SJREIA Continues to Expandby Linda Pliagas tate,” a frequent guest thousands of investors.N on NTDTV, and a Barry, who graduated orthern California is home to mom to two children. with a degree in business many investors and Geraldine Barry is also the pub- administration from the Barry’s real estate association is lisher for REI Voice University of Southernthere to serve them with education, refer- Magazine, which California, has been in-rals and networking. As founder and presi- provides educational vesting for over ten years,dent of the San Jose Real Estate Investors resources, tips, and both locally and out ofAssociation (SJREIA), which is a member advice on growing a state. “In the current mar-of the National REIA, a non-profit advo- real estate portfo- ket there is a once in acacy organization, Barry has created a vi- lio. Additionally, Lisa Moren, Bill Tan and Geraldine Barry lifetime buying opportu-brant community for investors to connect she discovered a nity. The savvy investorand collaborate. niche for an educational publication, as can take full advantage of cash-flowing op- She grew the network from one club there were no other sources of this type portunities to create financial security longresponsible for hosting a half-dozen mem- available for investors specifically in this term,” Barry states.bers into a three-chapter orga- area. Barry created Some of today’s most influential inves-nization spanning the bay area REI Voice (formerly tors, such as Bruce Norris, John Schaubwith locations in the East Bay, SJREIA Journal) to and Jon Freeman, have spoken at SJREIA.South Bay and Mid-Peninsula fill that void, and the The demand for education is so great in thewith over 400 investors. now bi-monthly pub- Bay Area that Barry produces a real estate In addition to juggling nu- lication is circulating expo, which has grown to be the largest in-merous monthly meetings and the Bay Area bring- vesting forum in the area. The SF Bay Expoworkshops, Barry is a principle ing education and is held annually, and as the producer of thisin Miles Barry Contract Furni- real estate news to event, Barry oversees the educational seg-ture, a guest host on the radioshow, “Going Beyond Real Es- Geraldine Barry Continued on pg. 47 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.
    • Part-Time Investing EqualsFull-Time Rewards! by Lori Peebles and my wife and I had our first child. You Sensei: Absolutely! And, I wouldn’t justO speak of being busy and having a lot on seclude high-income earners as I deal with ne of the perks of real estate in- your plate! I definitely had a lot going on many types of people who want to get in- vesting is that it is a flexible pro- at the age of 26. volved in real estate while they focus on fession, yet it can provide incred- When I bought my first home using only their career. As many people are not contentible pay days. In fact, is there any other 3% down, I soon realized the power of le- with their J-O-B and would love to transi-career that one can do on a part-time basis verage. It was astonishing to me that all I tion out of their job to real estate, some ofand reap full-time rewards? had to do was give 3% and the bank would us love ours. For an example, I still teach Sensei Gilliland, owner of Black match me with 97%. This blows the martial arts, not because I have to, but Sensei GillilandBelt Investors, started his real away any retirement plan from because I love to.estate investing as a supplement your employer that matches a Let’s face it… prices on EVERYTHINGto his full-time business, operat- dollar to your dollar. are going up and our incomes remain theing and teaching martial arts at As soon as I got a taste of in- same. Then we have our passive invest-his facilities. He soon found out vesting I had to go for more, so I ments that are deflated. So these average tothat even working at it part time put in long hours and late nights high-income earners are knocking on ourmade an enormous difference to studying different strategies to door to help them get a faster and better re-his bottom line. learn the niche that best fits me. I turn on their investment and re-coop what Here, Sensei shares his secrets found that to be rehabbing. they have lost from the past few years.to help investors at all stages I just went through the process They also realize that becoming an activereach their optimum level. with my own home and this strategy was investor requires time, education and wis- most familiar to me. So I flew over to Ft. dom, with the biggest hurdle being time.Question: Sensei, as a martial arts in- Meyers, Fla., to grab my first deal. Yes I The average American no longer works 40structor and owner of instructional mar- was told that I am crazy among other things hours a week, we are now working 50, 60tial arts schools, how did you find the time for investing across the states and remotely and 70 hours per week and trying to bal-to learn about real estate, let alone actu- rehabbing my first project, but they ate ance a family life. Most realize becom-ally become an investor? their words when I did my first flip and ing a real estate weekend warrior is not aSensei: When I started learning about real made just over $9,000! successful plan. This is where Black Beltestate, I owned seven martial arts schools, When I received that first paycheck it su- Investors and my program Remote Rehabsone boxing gym, was newly married, just per charged me to get more in the pipeline. comes into play.purchased my first home (a fixer-upper), I did several more flips out of my area sim- ply because it was cheaper and made better Q: You’ve devised Remote Rehabs with the number sense. Once my new business built busy executive in mind, tell us about it. a strong capital base I started fo- Sensei: I have created a way in which inves- cusing on deals in my backyard. tors can rehab properties from the comfort of their own home without lifting a finger Q: Should high-income (or hammer). Remote Rehabs is a hands- earners and business off approach designed for the investor who owners continue with may not have much experience and/or just their “day job” and simply doesn’t have the time to rehab prop- invest part-time? erties, but wants all the cash! Remote Rehabs is a well planned, cal- Continued on pg. 53
    • 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 7 Days! ash Flow 1 Days! S old in 2 E quity & C S old in 5 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 Team@CASHandWEALTH.com
    • O kay so we are taking a little ar- this region are relatively stable. Excluding There is no replacement for experience tistic license with the famous the so-called rust belt markets (Cleveland, If you agree that the Midwest is good quote from the famed news- Detroit and Flint, Mich.), the Midwest is place to invest, make the choice to work paper writer, Horace Greeley. doing quite well. Unemployment is below with an experienced team such as ArmorWe found a firm based in the Midwest who the national average and creditworthiness Equities. With over 25 years of experiencebelieves no region of the country offers remains high. Indiana, for example, con- working in the Midwest, coupled with theirgreater opportunities. Here is their case: tinues to maintain an AAA credit rating, attention to detail and high standards forAs the nation continues to work through and in recent months, many of the states in quality, the Armor Team is an ideal choicewhat is been coined the Great Recession, the region have seen real private sector job for investors who are looking for high NOIbanks continue to fail at an unprecedented growth. (net operating income) that the region of-GO MIDWEST YOUNG MANpace. In 2009, 141 banks were shut down, These factors have combined to create fers. Their name says it all, ARMOR is notthe highest number since 1993. many opportunities. Currently, investors only the firms name its also an acronym, In 2010, the FDIC reported 157 bank both large and small are largely ignoring the A= Acquire, R= Rehab, M= Market to pro-failures, an all time record, and an addi- Midwest. Buyers are focusing most of their spective renters or buyers, O= Occupy thetional 26 so far in 2011. This has attention on the supposed property with a qualified tenant or buyer,put tremendous pressure on the Diamond States (CA, AZ, R= Refinance.FDIC insurance resources. Weiss NV, TX, FL, NY).Research, a leading bank rating Typically bulk sales of Selection, selection, selectionservice, has over 1,500 banks on REO inventory in these It is truly said that it’s not what you selltheir watch list and they continue states are running 60% a property for, it’s what you pay for it thatto add more. Existing banks are to 90% of current market determines how much money you make inunder greater scrutiny to get their value. The opportunity in real estate. Armor Equities has an experi-finances in order. In the wake the Midwest is potentially enced team of specialists who seek out theof all this, opportunities to pur- far greater than the most best opportunities. With an “eyes on allchase real estate assets at deep sought-after markets in the properties” policy, the principal of the firmdiscounts in key markets of the article by country. personally inspects each property. Manycountry have never been greater. Jeff “Klondike” Koehrn There are a number of in- factors are considered prior to purchase of Discounts that are being offered vestors who have not taken any property, including:vary widely by region. In fact, the states notice of this rare opportunity because they • Neighborhood Qualitythat were initially hit the hardest with simply don’t know the market. The prin- • Property Conditionforeclosures and a decline in market value cipals of Armor Equities, LLC, have been • Occupancy(Florida, California, Arizona and Nevada) doing business in the Midwest for over 25 • Predicted Rehab Costhave actually rebounded. While home val- years and are taking the lead in helping in- • Area time on Marketues are not anywhere near the high of a few vestors discover the benefits of investing in • Back Taxes-Liensyears ago, and foreclosures are still occur- the region. • Property Vestingring at record levels, the real estate mar- This window of opportunity will not These are just a few items that are con-ket in those states is very active and banks last forever. Prices in Indiana are low, but sidered during the due diligence period.have been able to sell their REO (real estate seemed to have bottomed out and are on an Many so-called “gurus” are teachingowned) inventory closer to market value. upward trend. Ohio and Michigan should that investors can by cheap properties The area of the country that was hit very be following suit. If ever there was a time from banks. Some have been successful,hard and has yet to see a rebound in market to invest in Midwest real estate, that timeactivity is the Midwest Region states. This is now. Continued on pg. 54is unusual considering most of the states in
    • Guild Mortgage: An investor’s partner in successS teve Bighaus and Jason Gos- their cash in the bank. Investors who are in- ser, real estate experts with Guild terested in purchasing a property can finance Mortgage Company, offer inves- it with as little as 20% down, but it’s limited tors much more than financing. to investors who have no more than four fi- Drawing upon nanced properties. Investorsmore than 40 years of real with five to 10 properties canestate experience com- expect to put up 25%.bined, Bighaus and Gos- “I would tell people ifser share their knowledge they’re thinking about in-with their clients, helping vesting,” Bighaus says, “they Supercharge your IRAthem to make an educated should do the research be-financial decision. cause it’s a wonderful time in 2 Days “Talk to any successful Steve Bighaus and Jason Gosser to buy. I see a lot of investorsreal estate investor [who’s] purchasing properties, and they San Francisco, CAmade his fortune in real estate and ask him are tickled pink because the properties cashwhen he bought his property,” Steve Bighaus flow from day one.” According to Bighaus, June 2011says. “It was never in an up market, it was the companies that he and Gosser work withalways in a down market.” describe themselves as being “turn-key” Anyone can lend money, but it takes a You will learn... committed team, dedicated to your success, to make the difference in your investment experience. Unique investing strategies Partnering with investors, each loan they businesses. Investors benefit from a wide The secret investment of thewrite is financially sound, and is custom de- range of services; including everything fromsigned to fit their client’s individual needs. financing to property management, which super rich...land banking “I don’t sell products at all,” says Bighaus, makes it easier for individuals to invest out“I give as much information to my customers of state. “Risks to the investor is minimalas they need to make a financial decision.” because these companies have gone to great How to use mortgage notesOffering his advice, Bighaus tells his custom- expense to provide this full service to theers, “If it doesn’t pencil, walk away from it.” real estate investor,” he says. to catapult your investingHe wants them to be comfortable with their Fannie Mae stated in an announcementchoice of investment. He would rather a deal dated February 6, 2009, “Experienced inves-not go through than for his client to be dis- tors [will] play a key role in the housing re- How to double the value ofsatisfied. covery...” “[We] want to make people aware your IRA in 30 days You won’t find any ARM products at that there is hope out there for lending,” saysGuild. “I’m pretty much a meat and potatoes Bighaus, “[we recognize] the importance ofkind of guy,” Bighaus says. “I only deal in the investor.”fixed rate products. You’ve got a choice be-tween a 30 year, a 20 year or a 15 year fixed Rather than going all over the place to find different financing for each deal, both For more info go to:rate loan.” seasoned and beginning investors can ben- Why? Bighaus says it’s “simply because of efit from having financial gurus in their cor- www.mywealthspa.com/eventsthe fact that’s where a lot of real estate inves- ner. Anyone can lend money, but it takes ators got hurt.” committed team, dedicated to your success, Many clients come to Bighaus and Gos- to make the difference in your investment or send an email to:ser for refinancing after purchasing invest- experience. There is really no shortcut to info@mywealthspa.comment property through a private lender. For collaboration with a knowledgeable real es-example, if someone purchases a home that tate professional when financing is needed.the seller says is worth $75,000 and they If you’re tired of dealing with lenders whopurchase it with private money for $50,000. don’t recognize the importance of investorsBighaus can refinance the property at the in this economic recovery, give Bighaus orappraised value, and the investor’s out-of- Gosser a call and experience the Guild Mort-pocket costs can be minimized by leveraging gage difference. — by Anita CooperRealty411Guide.com PAGE 43 • 2011 reWEALTHmag.com
    • An Overview of the Title-Holding Land Trust holding or nominee land trust originated in limited liability company, a corporation or by Bill J. Gatten, NARSCor, LLC Illinois with Chicago Title and Trust in the any other type of business entity. Having 1920s for the benefits of some questionably your name on a public document that re- WHAT IS A TITLE-HOLDING nefarious characters who were large land- veals your likely financial status is a VERY LAND TRUST? owners. unwise move in our overly litigious society The Illinois-type land trust, referred to in Prior to that time the earliest use of land when there is such a simple alternative.some states as the real property title-hold- trusts was in Feudal England (circa. 1500ing trust is, within itself, a simple, inexpen- AD), wherein the wealthier landed vassals WHO IS THE TRUSTEE FOR THEsive and safe method for holding legal title used land trusts to hide their real estate TITLE-HOLDING LAND TRUST?to real property by a third-party fiduciary. holdings from the government (the King) The trustee serves simply as titleholder inThe title holding trust is, in effect, a revo- by means of having a third-party step in to the trust and has no authority to act withoutcable Grantor Trust designed specifically “own” the property for them, while they specific written instruction by the trust’sto acquire, hold, manage and ultimately continued using it. beneficiaries, unless otherwise stipulateddispose of, real estate on a confidential or During the term of the trust, the origi- in the trust agreement.private basis in order to most completely nal owner could enjoy all the benefits ofshield one’s real property assets from pry- ownership while avoiding certain income WHO OWNS THEing eyes. tax impositions, as well as avoiding the PROPERTY? The title holding trust (Land Trust) is distasteful requirement of turning the prop- The beneficiaries of the title-holdingsimilar in some way to the common Family erty over to the King when involuntarily trust own the trust, but not the asset with-Living Trust, but under analysis has some conscripted into military service. in it (the corpus…i.e, the property). Thedistinct legal differences, which provide Today there are myriad reasons for using nominated trustee is the owner-in-fact ofsignificant benefits and advantages for its the land trust model for acquiring, dispos- the corpus of a land trust, silently holdingbeneficiaries that other trust forms cannot. ing of and holding real estate. The most full legal and equitable title: thereby leav- For example, solely its beneficiaries, not common of these is confidentiality of own- ing the beneficiaries with just a personalthe trustee, direct the co-beneficiary land ership, in that one can be an owner and di- property (versus real property) ownershiptrust, unlike other trust structures. rector of the trust with 100% of the benefits interest in the title-holding vehicle. The land trust trustee merely holds own- of ownership of the property, without such Nonetheless, the beneficiaries continueership of the property (legal and equitable) ownership ever needing to appear in the enjoying all ownership rights and privileg-and has no say-so in the day-to-day dealings public record. es along with full power of direction, evenwith the trust’s corpus (i.e., the property). The NARSCor, LLC family of compa- though the entity designated as the trusteeOther benefits include: ease of income tax nies has provided private, professional fi- owns the real estate itself.reporting; elimination of squabbles among duciary services, throughout the U.S. for The names of the beneficiaries of the titleparties; protection over 25 years (est. l984 holding trust are not reflected on any publicfrom Partition and as Equity Management record, and no information is disclosed toCharging Orders Services). Here is some any inquiring party unless authorized andby the courts, ef- information that may help agreed to in the trust agreement or requisi-fective shielding shed some light on this tioned by court order.against lawsuits, topic.IRS and credi- HOW DOES IT WORK?tor liens; and the WHO SHOULD SET- The trustor (property owner) enters intoability to silently UP A TITLE HOLD- a standardized title holding trust agree-transfer ownership ING LAND TRUST? ment whereupon the trustee is appointedand income tax A title-holding trust and the beneficiaries are designated, alongbenefits from one can be established by an with naming a successor beneficiary whoseparty to another individual, a group of in- function it is to take charge as the trust’swithout the stan- dividuals, a general part- director in the event of the original benefi-dard complexities nership, a limited partner- ciaries’ demise or permanent incapacity.and paperwork ship, another trust, another Throughout its term, the trust beneficia-normally encoun- trustee or trust services ries retain complete control over the trusttered in real estate provider, such as an out- and its corpus. They are charged with man-transfers. of-state trust company, a aging the property but can appoint an un- The modern titleRealty411Guide.com PAGE 44 • 2011 reWEALTHmag.com
    • paid non-property manager or DUE ON SALE CLAUSEthird party to collect payments A single-beneficiary titleand make disbursement on their holding trust will not circum-behalf. The beneficiaries are vent the alienation provision inalso responsible for insuring, a mortgage loan (i.e., the due-maintaining, financing, leasing on-sale clause) when 100%or disposing of the real estate of the beneficial interest isas they mutually see fit. relinquished by assignment or Upon mutual agreement transfer to second party, andby all beneficiaries, they may the current beneficiary no lon-modify, update or terminate the ger has an interest in, or controltrust at any time. The beneficia- over the trust corpus. HOW-ries may add other real estate EVER, when a co-beneficiaryto the trust at anytime as well. is named in the trust who is notAt the direction of the benefi- related familiarly or in busi-ciaries, the trustee is compelled ness intent, protection fromto execute deeds, promissory a lender’s activation of thenotes, deeds of trust, leases due-on-sale clause does ensue.and other documents pertinent (12USC 1701-j-3, et seq.)to ownership of the property,but only upon specific written THE MAGIC TRICKauthorization and mutual direc- A frustrated home sellertion from the beneficiaries. names a would-be homebuy- When title to real estate is er, who is short of cash andheld in a title-holding trust, credit as a co-beneficiary in hiscourts have consistently held title-holding trust, and subse-that the beneficial interest(s) quently leases the property toin the trust is personal property that same party. Violá! Thatand not real estate, including person and the “seller” havethe right to receive any income just hit the jackpot achievingand any proceeds from the sale with minimal effort and paper-or mortgage of the property. work 100% of all the benefitsThe beneficiaries reserve the of a sale for the relinquishingright to live on or otherwise party and full homeowner-possess and use the real estate. ship for the acquiring party,Their beneficial interest in the including full income tax de-trust, as personal property, can duction for mortgage interesteasily be assigned to another and property tax, appreciationparty without any need to pre- potential, equity-build-up frompare, sign, notarize or record a mortgage principal reductiondeed. and full pride of ownership. Moreover, the resident benefi- WHAT IT DOES NOT DO ciary needed no down payment The title holding trust will and no new mortgage loan ornot get around or avoid any credit application…AND therekind of income taxation or as- was no due-on-sale-clausesessment that would otherwise violation relative to the seller- CONTACT USbecome due and payable. carry-back. In addition, for the BILL GATTEN CENTER Although the existence of the “seller” there was no income for Wealth & Educationtrust can certainly obfuscate ef- tax penalty; no due-on-sale 6520 Platt Ave., St. 548forts to reach the corpus by clause to worry about; no more West Hills, CA 91307judgment creditors, anonymity vacancy or negative cash flow;cannot be maintained under de- no real estate commission to 1 800 409 3444 Bill Gattenposition in a legal matter. pay; no management of main- FAX 1 800 967 0333 Renowned Author home@landtrust.net National Lecturer A title-holding trust can- tenance costs; and…he/she www.landtrust.net & Investornot protect a homeowner from now has a resident beneficiaryforeclosure actions should un- with an owner’s mentality ver-derlying financial obligations sus a tenant with renter’s dis-be unmet. regard.Realty411Guide.com PAGE 45 • 2011 reWEALTHmag.com
    • Cash is KING Yes, investors can get rock-bottom deals, but one wrong move can wipe you out! at the Courthouse he made his first home purchase need to make sure the property has no tax by using his credit card for the liens (IRS and state). Also, make sure that down payment and closing the legal description matches the physical costs. When his employer went address (a legal description overrides the bankrupt in 1993, his real estate street address). Property taxes are also of portfolio was his saving grace. most importance: Are there any property “By that time, I had accumulated taxes in arrears? Make a mistake on any of eight homes that allowed me to the above and your real estate investing ca- support my wife and children.” reer may quickly be over. Guenther entered the picture Miller says that they also have great rela- as one of Miller’s first investors. tionships with banks and brokers who know “I was a senior executive they are able to purchase quickly with cash, working in the corporate world allowing them to get super deals. at the time I met Bert. I was not Another great avenue for the cash buyer happy getting a small annual sal- is to negotiate directly with owners who ary and a yearly review based need to sell their property quickly. These on how the company was doing techniques are just some ways investors [profit wise]. I was not in control can gain access to phenomenal deals at and proceeded to augment my cash discounts. income with real estate.” “We have been buying at the courthouse The two became fast friends steps since 1994,” Guenther says. He es- and decided to form GM Realty timates that since then over 1,000 homes after Guenther could no lon- have passed through their hands. Most of ger adequately handle both his the homes were immediately sold off as investments and his demand- fixer uppers to other local investors who ing position. Over the years the were willing to put in the sweat equity, time by Lori Peebles & Anita Cooper partners have built a portfolio ofT and money into rehabbing the property for over 300 rental homes, buying at the Shel- an end buyer. he adage “Cash is King” by County Courthouse. In addition to managing a sizable personal is true and nowhere does When asked what secrets they had to portfolio and helping other local investors this ring more accurate share with readers, Guenther replied: gain access to rehab specials, Guenther and than in real estate. Hav- “There are really no secrets to how we get Miller are now ready for other real estate ing access to green gives the best deals, we just do a lot of research. challenges. Recently, they added a property investors bargaining We now have a dedicated staff member who management division, GM Realty Manage- power to get great deals, does nothing but research properties sold at ment and they also have started to providebut having the ability to buy at auction also the courthouse steps at foreclosure.” turn-key rental properties. They also re-has many risks — one detail left unchecked Preparation is also key when dealing cently unveiled their new website (www.and it can spell disaster even for seasoned with immediate all-cash transactions. BuyMemphisForeclosures.com) to serviceinvestors. That same oversight can also Guenther ex- the growing interest in thetake novice investors completely out of the plains: “Not only do Memphis market from inves-game for good. you have to purchase tors around the world. To navigate the bumpy terrain of the auc- the property right on Buying at auction is cer-tion world, we asked Bert Miller and Hans the spot, but you tainly not for the novice orGuenther, two seasoned auction buyers have to also be sure cash strapped, but if you havefrom Memphis, Tenn., to shed some light you are buying a first a nice reserve and the stomachon this topic. mortgage.” for this type of investing, the Miller’s real estate career began when Next, investors rewards can be phenomenal. Hans Guenther and Bert MillerRealty411Guide.com PAGE 46 • 2011 reWEALTHmag.com
    • Market Spotlight: DETROIT SJREIA Continues to Expand, pg. 39 ment and is proud to host market-timing expert, Bruce Norris as this year’s keynote LOCATION: speaker. This annual event, which has re- Detroit, Mich. ceived rave reviews, is free to all attendees COMPANY: and draws vendors from around the nation Bay Area Equity Group, LLC seeking to provide opportunities to moti- CONTACT: vated buyers. Registration is required at Ismet Jahovic www.SFBayExpo.com. ph: (408) 369-9244 ext. 12 Barry says the goal of the Expo is to www.bayareaequitygroup.com “help our audience move from fear and Ismet: We have made the process simple inaction to thoughtful and wise investingQuestion: How is your market handling since our properties are truly turn-key and choices based on information presentedthe economic slowdown? already rented. We take the fear out of in- from our broad array of market, real estate,Ismet Jahovic: The slowdown has actually vesting out of state with the warranties we and industry experts.”created some fantastic buying opportuni- have in place so investors will never get a If travel takes you to the Bay Area, beties, which have created some very high call from their tenant with any maintenance sure to schedule a SJREIA club meeting incash-on-cash returns for our investors. The issues and will never go a month without your agenda and if you live in San Francis-slowdown has given our investors a chance collecting rent. We have strict guidelines co or San Jose, be sure to take advantageto buy multiple properties and increase their we follow to select our properties, ensuring of the wealth of resources that Barry andportfolios to better position themselves in our clients are getting the best property for her group provide.the future, when the economy recovers. their money. For information about Geraldine Barry orQ: Detroit boasts some Q: What makes your company SJREIA, please visit: www.sjrei.orgof the highest returns on unique? To subscribe to REIA Voice Magazine, vis-investments nationwide. Ismet: We provide a free one it: http://www.reivoice.com/subscribeHow are you able to har- year rental income protectionness these returns? plan and free one year homeIsmet: Detroit has been achallenge to navigate for warranty plan, which makes in- vesting in out of state real estate Never Miss an Issue! Realty411 Realty411 Wealthmost investors. With all worry-free. We offer our clients A Re alty4 Print • Online • Network Real Estate 11 Publi catio nthe challenges of tenancy, a free LLC or corporation with www.realty411guide.com | Vol. 3 • No. 3 • 2011 A Resource Guide for Investorsmaintenance, complicat- the purchase of their first prop- Declare $uccess Special 3 YEAR Anniversary Chris Gleason of Vol. 1 • No. 2 • 2011 in 2011 Issue! erty. We provide all of our in- MMG Capitaled taxes and more, some Make All of Your Offers His Investors Goals Materialize! High Yields, Low Risk LEVERAGEfind that Detroit is just vestors with quarterly appraisals When Do You Grow? When Do You Hold? Ismet Jahovic with son. Take a Look Inside: Cash-Flowing Rentalsnot worth the hassle. We on their properties. Properties are From Around the Nation with Tenants in Place! DAN REEDY Tips for Success in Welcomes You to Business & Real Estatefelt that it was. As seasoned investors, we hand selected and not purchased in bulk, America’s Heartland The Owner of MOREKC.comundertook the task of harnessing some of which makes it possible for us to stay in Helps Investors Grow their Portfolio in Kansas City, MOthe greatest cash-on-cash returns in history, good neighborhoods. Our clients enjoy a Photograph by Sam Greenand delivering them to investors nation- 15% to 18% return on their investment andwide. With a time-tested approach to dili- are purchasing their properties 25% to 40% 2 Years for Only $39gent property management, construction, below appraised value.and legal tax appeal work, we have become Q: You have one of the most comprehen- _____________________________________the only real estate investment company of sive home warranty plans, how are you Name as it appears on credit cardour kind. able to do this? _____________________________________Q: What is the best part of being an in- Ismet: We have several in-house property Credit Card # (visa, mc, amex)vestor in Detroit, Michigan? management teams that do a thorough pre-Ismet: The best part about Detroit is that placement screening to get the most quali- _____________________________________ Expiration Date CVC codeit is number one in the country in total fied tenants into our properties. We have tocash-on-cash returns. Our price point of back our warranties, and our in-house man- _____________________________________$25,000 makes it really easy for investors agement is the key to our success. Signature Requiredto buy. The auto industry has completed its Q: What is your real estate or manage- _____________________________________restructuring and is now profitable, which ment philosophy? Mailing Addresswill help the economy. With all of the posi- Ismet: We only deliver completely turn-keytive press recently, appreciation can also be properties to our clients with a net return _____________________________________ City State Zipexpected in the next few years. The bottom on investment of at least 15%, which takesline is cash flow sustains these investments, the fear and risk out of investing. Bay Area _____________________________________not speculation. Equity Group acts a as a bridge, delivering Email Address or Phone (to join our network)Q: Why should investors from afar in- proven, sustainable returns, month after Fax Copy or Call for Info: 310.499.9545vest in the Detroit market? month, year after year. or email: info@realty411guide.comRealty411Guide.com PAGE 47 • 2011 reWEALTHmag.com
    • Investing FAQS: Foreclosure Investing Strategies & PitfallsS hould you Which strategy is sure auctions. purchase special Another example: If you’re Book right for you? foreclo- Excerpt The great thing good with carpentry and con- sures in a about investing in real struction, you may rehabilitate declining estate property is that the properties yourself. Other- or inclin- there’s an acquisition wise, you may outsource this ing market? If you’re and investment strategy task to someone else. a short-term investor for every personality type, Now that you have good (flipper), what should skill level, and income overview of your real estate in-you do when you can’t move property level. Here are some fac- vestment options, let’s look atoff your inventory lists as quickly as you tors to consider: the other factors that will affectusually do? And what sorts of acquisition •Risk tolerance: All in- your income when you investand investment strategies are available to vestments require some in foreclosure property.you? You’ll find the answers to these ques- amount of risk. You shouldtions and many more in my book, “Matt’s choose a strategy that’s compatible with When is the Best Time to BuyForeclosure Home Buying Secrets.” Here your tolerance for risk. Foreclosure Properties?is a segment from chapter eight. For example, if you’re not comfortable The best time for an investor to buy prop- estimating unknown factors, then you erties is in a declining housing market (like Investment Strategies should focus on purchasing REO proper- we’re in now). And that’s because foreclos- Once you’ve acquired your investment ties that you can inspect rather than fore- ing properties, unemployment and evenproperty, what should you do with it? Here closure properties that are sold “as is.” a recession all provide opportunity in theagain, there are plenty of options. The •Time: Some strategies require very little form of motivated sellers plus propertiesfollowing are the most common holding time, such as buying good-condition homes that you can purchase at below-the-marketstrategies (and note that you can actually at least 20% below market value and resell- value.combine them): ing them quickly. Other strategies require a What’s more, a declining market means •Holding property for the long term. lot of your time, such as buying rehabilita- there’s an influx of properties on the mar-Here you buy property that you expect to tion properties at foreclosure auctions. ket — and that means more options and op-appreciate over the long term. Perhaps you •Cash: If you have access to a limited portunities for you. This is good news forbuy relatively inexpensive property in an amount of cash, then you’ll likely want to home buyers and real estate investors whoarea that’s growing quickly. are looking for mid-term to You buy with the expectation that in five, long-term investments. When10 or more years your property will be in the property values increasehigh demand – and thus command top dol- in the future, investors can selllar (so that you make a nice profit). their portfolio for a profit. •Holding property for a short time (flip- On the other hand, this typeping property). This is where you buy of market isn’t always idealproperty for cheap and then sell it quickly for those who are looking to(sometimes immediately) for a profit. quickly flip a property for a You may do this by purchasing property profit. Since there’s more sup-below market value (such as foreclosure ply than demand in a decliningproperty), or purchasing run-down homes market, any house you’re sell-that you can quickly rehabilitate and sell ing will likely sit on the marketfor a profit. for much longer than it would •Renting property. Finally, another com- focus on strategies that allow you to flip the in an inclining market.mon way to make money with investment property fast and reinvest your capital. In other words, it’s much more difficultproperty is by renting out the property. •Skills: Taking an honest assessment of to make fast profits in a declining market The rental may pay for the mortgage you your skills and your interests will help you (unless you find a property well below mar-have on the property as well as other ex- decide what strategy is right for you. ket value that you can move fast by resell-penses, or you may charge higher rents to Example: If you’re an empathetic people ing slightly below market value).make a profit. person, you might find it easy to work with Either way, you can sell the property for those who are in pre-foreclosure. If you This excerpt was printed with permissiona profit in the future. have zero people skills, then you’d prob- from Matt Malouf, the author of “Matt’s ably be better suited to buying at foreclo- Foreclosure Home Buying Secrets.”Realty411Guide.com PAGE 48 • 2011 reWEALTHmag.com
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    • Cash Flow with Vacation Rentals By Hector Padilla, Entrepreneur, Broker & Investor It’s TimW ould you like to know how to Thin e the listing agent called Andy and said her client would accept old saying, “...it’s not what happens to you, but what you do with what happens and Outsid kI bought a multimil- his offer. how you react to it.”lion dollar property Andy then assigned his contract I have always told my students “Createwith NONE of myown money? Plus, the Bo e to me, and I paid him $40,000 at the closing as his “finder’s fee.” More Opportunity Than You Find.” So in- stead of selling my Sexy Rock Star home, Iat the closing of x! You see why I called Andy a sharp decided to convert it to a “Hotel Alternativeescrow, I received a entrepreneur?check for $140,000 BIG ONES! I opened escrow and Back in late 2005, a sharp young real agreed to pay $2,000,000. Iestate entrepreneur by the name of Andy raised $500,000 in cash from aStory brought me a property located in the private investor and took out aHollywood Hills. first mortgage. I kept $140,000 A few weeks prior, Andy sent the list- from the transaction and used iting agent an LOI (Letter of Intent), and the to pay for some of the remodel.listing agent literally laughed and rejected Once the rehab was done thewhat she described as “a ridiculously low property looked gorgeous andoffer.” appraised for $4,000,0000. A valuable lesson I have learned is that At that point, I put the prop-time and circumstances always motivate erty on the market for a fewsellers. Long story short, the unmotivated months. When I could not get my price, I for The Affluent,” and make it a “Moneyseller unexpectedly lost her husband in an decided to keep it and move into it. I was Making Machine.” I decided to offer afflu-accident and immediately became highly living like a Rock Star in the world-famous ent people my property as an alternative tomotivated. Hollywood Hills. What a glamorous life!!! staying in a boring hotel. Remember this: “People will never give Then the recession hit and my real estate One night I simply sat down and wrote aaway their equity or money, BUT they will business was affected. But I simply could mini-business plan.trade it for peace of mind.” Lo and behold, not part from my sexy home. I recalled the 1. Hire a professional photographer 2. Hire sexy models to portray the glamorous Hollywood Hills life 3. Build an elegant website 4. Create value by offering VIP Services 5. Hire a professional to market the prop- erty 6. Complete all tasks within 21 days 7. Take bookings and EARN some Honey Money At www.PresidentialResidence.com, I offer my VIP clients everything from a chauffeured Rolls Royce, Armed Body Guards, Candle Light Dinner, Executive Services, Daily Housekeeping, Breakfast in Bed and anything else our clients de- sire. Our client’s pay $1,749 to $2,499 per night. We have even had guests pay up to $4,000 per night for special events. I have had the opportunity to meet some amazing people. This year, we have been booked with back-to-back clients. At times, we have clients check out at noon and new cli- ents check in at 3 pm. Since this has beenRealty411Guide.com PAGE 50 • 2011 reWEALTHmag.com
    • such a great experience, I now time and management.own a $1.2 million ocean-front 8. Build a business that I canluxury condo in Cabo San Lu- sell in the future.cas, Mexico, and a three bed- 9. Have FUN!room home with a pool in Palm Remember there are threeDesert, plus my Hollywood necessities in life.Hills baby, www.Presidential #1. Food.Residence.com. #2. Water. These three vacation prop- #3. Shelter (i.e. Real Es-erties offer great benefits: tate). People will always need1. Cash Flow a place to live, play and work2. Tax Benefits (a.k.a Real Estate). This is why3. Networking Opportunities real estate has always been the4. I trade my properties with Number One Investment. Butother vacation homeowners you do need to know how toat NO COST. I can trade time buy right and invest wisely.in one of my properties withsomeone who owns a property Hector Padilla is president ofin Hawaii or Europe, etc. HP Capital Investments, Inc.,5. Build equity a real estate acquisi- What do you get when you’re a member of Pre-Paid Legal?via apprecia- tion firm, and principal Confidence in your daily decisions. Peace of mind with yourtion. broker of SWI Realty, a personal affairs. Security for your family. Protection of your6. Meet afflu- boutique realty company. legal rights. Advice from courteous and concerned attorneys.ent people. For information, please Answers to your questions. Call today for more information on7. Own a busi- call (310) 204-8971 or how to access the legal system!ness that re- email him at: hector@ Lori Fouts - Independent Associatequires little hpcinvestments.com 510.520.2753 | ppl.fouts@gmail.com www. prepaidlegal.com/hub/lorifouts
    • Book Review Buy Your 30 Day Coaching Guide Today! JUMPSTART REAL ESTATE INVESTING This action plan is for the beginner and by Lori Peebles for each day of the month. It’s experienced investor O an easy-to-read success manual ne of the least expen- with a serious mission: To get Define Your Vision Gain Knowledge sive ways to educate the reader into their first deal by Build a Team oneself is by reading a the book’s completion. Achieve SUCCESS book. So persuasive is the writ- The first chapter is designed to ten word that they say the “pen give a general overview of why The time is NOW to is mightier than the sword.” real estate is, and will always start living your dream! Properly channeled, newfound be, the best investment: passive VISIT US AT knowledge can create lasting income, appreciation, tax ben- impact. In the area of real estate efits and leverage. Bowen also investing, the right book can mentions another important re- exponentially grow your wealth ward that is often overlooked: by opening up your mind to flexibility. COACHING PACKAGES ~ FREE DOWNLOADS new concepts and ideas. Once the author reviews some REAL ESTATE EDUCATION TOOLS One recently published basics as to why book that should be added one must invest in to your library collection real estate, the real is “Jumpstart Real Estate homework begins. Investing — A 30-Day Ac- On Day One, Bo- tion Plan to Buying Your wen requests that First Property.” readers state their Creating Wealth This easy-to-read, concise manual was written by an mission. Sounds t o e a s y ? We l l , Through Real investor who used her 15 Natasha Bowen don’t be fooled by years of business and real estate the book’s simplicity by Day Estate Investing investing experience to bail out 24, you’ll be analyzing proper- of her corporate job in pharma- ties. ceutical sales. My favorite entry was Day The author, Natasha Bowen, 22, “Evaluate Your Exit Strat- who holds a master’s degree egies.” In this chapter, she in business administration, was shares her multiple exits, which fascinated with real estate and include wholesaling, seller carefully planned her move out financing, flipping, lease option of corporate. She cautiously be- and lease purchase. gan her investment career on a If you’re ready to start invest- part-time basis in 2001. Once ing, but you’re spinning your Lou Meza, an experienced investor/agent she had some deals under her wheels not knowing exactly belt, she went full speed ahead. how to go about it, then pur- you can trust, invites you to visit him in his Bowen has now amassed an chase “Jumpstart Real Estate new office. It’s time to learn about invest- impressive portfolio of 20 resi- Investing” on Amazon.com. ment opportunities that exist near you. dential rental properties and an You will have a solid, daily office building in Memphis, plan; one that is easy to follow, Tenn. She now also divides her yet difficult enough to instill the time between real estate invest- discipline needed to become a ing and her career as a business successful investor. coach.“Jumpstart Real Estate By following Bowen’s guide- Lou Meza - loumeza@hotmail.com Investing” was written with an lines, you will have a concrete 562.945.3510 or 562.900.4009 action plan in mind. The book step-by-step plan, one that will CA License # 00983625 is formatted into 30 entries, one lead you to real estate success.Realty411Guide.com PAGE 52 • 2011 reWEALTHmag.com
    • Part-Time Investing, pg. 40 to transfer to real estate full-time then build I am planning a small group tour in Indy the business until you can match your cur- at the end of the summer, so be sure to getculated and successful cash and wealth rent income consistently, then make the enrolled as seats are limited.building program. It is a 100% hands-off change.rehabbing system to produce the investor 3) Or you can work both businesses full- Q: What can you do for the people whomassive profits. time and get all the benefits with the help of may have been hit hard by the economic my program Remote Rehabs. We do all the meltdown, yet want to get started?Q: That’s very interesting, can you elabo- work and you collect all the checks. Sensei: Great question. My company offersrate why an investor would need your our clients options. We can either feed youprogram and how your Remote Rehabs Q: I know you do prosperity tours in Ari- a fish or teach you how to fish. What I meanworks? zona and teach investors about the local by this is that we can supply investmentsSensei: Remote Rehabs is designed for the market there, it’s great that they are on to you or help you build a real estate busi-investor who needs experience on their weekends for busy professionals. Tell us ness through wholesaling, creative financ-side. Investors are looking for a rock solid more about your next tour and how can ing, rehabbing and landording. If you havecompany that knows exactly what they are they get started? been hit hard by the economy then my firstdoing when it comes to targeting areas of Sensei: I have been offering tours since assumption is that you need to produce aoperation, utilizing multiple strategies and 2003 in several emerging markets across paycheck. Now we can get paid several dif-executing the investor’s goals. the states. These tours are for investors to ferent ways through real estate, but if you We will hand hold throughout the entire get familiar with the program, my team are lacking the capital to buy and/or lackprocess and there is no need to do it alone. Remote Rehabs is also for the investor When I received that first paycheck, it superwho does not have the time to rehab hous-es. Speed and efficiency is the name of this charged me to get more in the pipeline.game and if you are not on top of the proj-ect then you are losing money. Investors, who works behind the scenes, the neigh- the credit to obtain loans, then you need tohere are a few words of wisdom: Don’t be borhoods and the properties we are target- focus on wholesaling. Wholesaling real es-a Weekend Warrior! ing. It’s a full day of education and in the tate is the life blood of my company. This program is also for the investor who field, experience with no pressure sales. This real estate niche allows investorsdesires a higher rate of return. Face it, sav- The Phoenix market has been hot for our to flip properties without the use of credit,ings accounts, CDs and mutual funds are investors, some of the benefits of Phoenix cash and without taking title. It is definitelynot producing. In fact, some of these ac- are: the quickest route to get paid in real estatecounts are actually losing when you figure •the prices are very low without the risk.in taxes and inflation. We all need income •the rental cash flow is largestreams to produce paydays and build our •newer houses start in the mid $30,000’s Q: How can they find out more?retirement. •and we can flip Sensei: Just give us a call, we love to help Currently our investors are earning up You can’t go wrong with the properties investors accomplish their financial goals.to 48% ROI (Return on Investment) and we are buying in Phoenix. Just to give you Another great way to get to know us andsome have returns in the 50s. Where are an idea of how strong investors and I feel the programs we offer is to join us for ouryou going to find solid returns like that? I about Phoenix, we sold over 1,500 houses free monthly real estate investor’s clubknow where…. Real Estate! in 2010 and 1,056 were flips. We would not meetings called 12 ROUNDS. We currently Remote Rehabs is a proven program for be able to perform these numbers unless have two locations in Southern California,the investor who does not want to lift a we had a proven system. Norco in Riverside County and Downey inhammer but wants all the profits. I want to invite the readers to see for Los Angeles County. themselves and to join me on the nextQ: With real estate it seems an investor Phoenix tour that is scheduled for July. Just Q: Do you have anything else you’d likecan have full control over how busy he call us for more details (951) 280-1900. to add about how investors can work realwants to be in the field, can you elaborate I do want to mention that we are in dif- estate part time for full-time profits?on this? ferent markets in the U.S. Currently we Sensei: Yes…GET IT GOING NOW noSensei: This is very true. You have a few are focused in Phoenix, Arizona; Southern matter what it takes! We all know there isoptions… California; Indianapolis, Indiana; El Paso, great opportunity out there, otherwise you1) You can be a full time real estate inves- Texas; and Kansas City, Missouri. wouldn’t be reading this magazine. We’vetor by wholesaling, rehabbing or landlord- Indianapolis is becoming a huge hit with all heard to buy low and sell high, well weing. It is a business and a business requires our fix-and-flip investors. The biggest at- are in the low part of the market. It’s not go-work. traction is the profit margins…they’re in- ing to get any better than this, so get it go-2) You can be a part-time investor on your sane! We are able to give our investors a 30 ing. If you need help building a real estateoff hours while working your 9 to 5. This to 50% equity position on a fully-rehabbed business or a performing portfolio, Blackis how most people start. Some love their house. Having such a large equity position Belt Investors will be in your corner.careers and only want real estate to be pas- allows us to resale our properties below thesive, and others are looking for a transition competition and get a quick sale. It’s all For more information, please call Blackout of the work place. I suggest if you want about get in, get out, and get paid! Belt Investors at: 951-280-1900Realty411Guide.com PAGE 53 • 2011 reWEALTHmag.com
    • Legal Protection for Investors, pg. 11had every lease or purchase agreement Hiello, I am Sam Sadat, founder and Sam’s Real Estate Club of Los Angelesreviewed before signing. I just would President of Sam’s Real Since May 2003, we’ve helpednot have done it if I had to write the Estate Club thousands of real estate investorscheck. of Los Ange- learn, network and prosper. Also, les. I highly As an investor, I have been able to get encourage known as LAREIC, Sam’s Realadvice and help from great attorneys in you to participate in your financial free- Estate Club, is dedicated to provid-several states. As we know, the laws are dom by attending our monthly meetings. There’s never been a better time to buy ing you with the hottest informationdifferent in every state, so this has made real estate than now. Market change on market conditions and how you can take advantage of thisrunning my business much less stress- forces have “conspired” to create the Great Recession. Join us to hear great national speakers and greatest wealth building opportunityful and certainly more cost effective. since the Great Depression. It is time to ever popular “Power Panels,” panel of active local investorsAll this for less than a cup of coffee per invest in your future by gaining valuable willing to help you succeed. And what’s more is the Sam’s knowledge and the skill sets required today — drive-thru pricing with five-star, achieve financial independent. I have Insight, a monthly segment where Sam’s message will invoke courteous service. Plus, virtually removed all “excuses” by show- action and uplifts your spirit. Once you see us, you’ll know ing you a plan on how you can make who doesn’t like a bar- money now even if you don’t have any! there’s no other club like Sam’s Club in LA! gain? Our monthly meetings are typically on Lori Fouts is an Inde- the fourth Wednesday of each month at the beautiful Beverly Hills Club in West Sam’s RE Club of Los Angeles pendent Associate with LA. You may always contact me directly 1112 Montana Ave., #390, Santa Monica, CA 90403 for any assistance with your real estate Pre-Paid Legal. Inc. a NYSE company. To re- challenges. Your success in real estate is guaranteed with a good coach. Let me 1-800-998-9930 | www.SamsREclub.com ceive a free DVD on The be yours. sam@samsadat.com EDUCATION • CONNECTION • ACTIONLife Events Legal Plan, please contact:ppl.fouts@gmail.com | 510 520 2753 “Whether You Think Youwww.prepaidlegal.com/info/lorifouts Can or Can’t, You’re Right.” -Henry Ford Gorilla Marketing Group Our company is a premier service and marketing group for Go Midwest, pg. 42 Real Estate Professionals. We do everything from Virtualin general bank asset manag- experienced professionals that Assistance to Aggressive Underground marketing.ers are deluged with phone know how to deliver on time • Virtual Assistant • Online Marketing • Image & Brand Protectioncalls from single investors mak- and within budget. In short, • Social Media Management • Promotions & Public Relationsing offers that more often than making the complex look sim-not are rejected. Armors’ acqui- ple is the mark of the groups PH > 213. 537.9194sition teams have long-stand- that Armor works with. gorilla562@gmail.coming relationships with asset Amor Equities, LLC, is excit-managers all ed about the oppor-over the re- tunities that exist ingion. They the Midwest region.regular- The firm is anxiously work with to engage and workArmor be- with those wishingcause their to experience thebuying power allows them to benefits that this time in historybuy in bulk. and this region provide. Construction and Property Armor Equities is not a mort- Management gage lender or broker, Armor Armor Equities, LLC, has will on occasion offer landrelationships with several out- contracts to applicants whostanding property managers qualify, Armor will then of-and construction teams workingthroughout the Midwest. It’s fer the contract, at a discount, to prospective buyers who are Ready to Invest inthese relationships that ensure looking for alternative sources the Arizona Market?quick turn around and gets the of income from properties with-product to market and ready to out being the landlord. Once Call me to buy DIRECTsell in three to five weeks. Co- the occupants are qualified to at the auction in Phoenix.ordinating multiple construc- obtain FHA or conventional fi- Sheresa Pompay ~ US Preferred Realtytion teams, working with local nancing, the contract owner is 602.617.7171 ~ pompay@cox.netutilities to restore water, power cashed out. For more details on www.facebook.com/AZAgentand gas is no small task. That is this program contact Armor atthe advantage of working with www.Armorequities.comRealty411Guide.com PAGE 54 • 2011 reWEALTHmag.com
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