Retire with Rentals Boot Camp

Disclaimer!
The strategies mentioned in the conference may not be appropriate for everyone;
other options not mentioned may be more suitable for your specific circumstances.
Consult your personal accountants, tax advisor and/or attorneys to discuss your
specific situation.
Past performance is no guarantee of future results. Real estate purchases are subject
to investment risks, including the possible loss of amounts invested.
While every effort is made to maintain accurate and current information, the
possibility of errors and/or updates always exists.

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It’s all about cash flow

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Active Income Passive Income

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Michael Zuber
A u t h o r & R e a l E s t a t e E n t r e p r e n e u r
Michael Zuber had work in the Silicon Valley since graduating from Santa Clara University 20+ years ago.
After wasting time and money in his 20’s he found Real Estate Investing and more specifically Buy and Hold
Rental Properties and never looked back. Michael focused on his day job and grew his rental property
portfolio from a single rental house to financial freedom in 15 years.
Now that he no longer has a day job he shares his story via his self-published book (available on Amazon)
called One Rental at a Time and his YouTube Channel also Called One Rental at a Time.
On the philanthropic side, Michael has a special interest in helping kids 15-25 see that they do not have to
hold a corporate job for 40 years and rely on a 401K. Thus Michael Sponsors a monthly Book Report
Challenge and Sends out $100 each month to the best Book Report.

Financial Freedom via Out of
Area Buy and Hold Rentals
MICHAEL ZUBER

Agenda for our Time Together
 Making Chunk Money
 Long Term Wealth
 Out of Town Investing
 Top 10 Things I learned about Financial
Freedom
 Little about Me and Our Story
 Why I Suggest an Initial Goal of 4
Rentals
 Keys When Starting Out
 Private Capital Keys Growth

Little Bit About Our Story
 Full Time Employee’s - Buy and Hold Landlord – Live in Bay Area (Mountain View, CA)
 Traveled 100K Air Miles a Year for nearly 15 Years straight, 100+ Nights in Hotels, 80+ Hour Weeks,
Worldwide Responsibility, Quarterly Stress Hitting Numbers and Managing Teams
 Invested / Built Portfolio in Market 2 ½ Hours away (Fresno, CA)
 Started with $40K and over 15 Years we went from One House to Portfolio of 175 Units
 Bought out of the MLS for 15 Years (No Special Access or System)
 Leveraged Market Cycle, 1031 Exchanges and Private Money to help secure future
 Retired from full time employment on Feb 1, 2018 (Olivia 5 Years ago)
 Self Published Book, and YouTube Channel Called– One Rental at a Time
 Started Buying Distressed Units to Repair, Lease and Sell as Solid Pride of Ownership Rentals (Flip)
(Completed 10 = Profit 300K+ --- Have 10 More in the works)
 Created a 6% and 20% Private Investor Program that has raised $2.0M+

Why 4 Rentals is Idea I Message
 4 is not a scary number, everyone I have met has said yes over 1-4 years I could
get there
 Frist 4 Rentals are easy to conservatively finance in current financing world
 I believe having 4 Rentals that appreciate over time, rent increases and tenants
paying off your asset is a great place to live
 4 Allows you greater flexibility in 10-30 Years. Do you sell one and pay off others,
do you refi 1 every 2-3 years
 When you get to 4 Rentals you will know for certain if you want to go to 10 or are
ready to stop

Keys When Starting Out
 Never Bet on Appreciation (Or use appreciation in your calculations)
 Always Conservatively Finance (Hold for long term through any cycle)
 Think Return on Time over ROI
 No Alligators (Negative Cash Flow)
 Cash Rich Asset Poor (CRAP) is wrong way to live
 Can’t save your way to Secure Retirement
 Getting to 4 Conservatively Financed Rentals is Key
 Buy and Hold – Think 10 Years Minimum (If not forever)
 Focus on your Core – Securing Capital, Managing your Team, Finding Deals

Out of Town Investing
 Live Where you want but Invest Where the Numbers make Since
 Pick Team and Then Market Second
 Know what you are playing for (Cash Flow or Appreciation)
 Think Decades
 Finance Conservatively to out last any downturn

It Doesn’t have to Take 40
Years
401K – Works But is a Slow
40 Year Process
Takes Team Work
Sacrifice is Key, Not a High
Income
Conservative Finance, Not
High Leverage Works Long
Term
Top 10 Things I Learned about
Financial Freedom
Having others pay for your
Asset is a great thing
Make Inflation your Friend
Let the IRS help you on your
Journey
Your Net Worth is Tied to
your Network
Anyone Can Do It

Core Beliefs
 Financial Freedom Starts with Playing
Good Defense (AKA Sacrifice)
 Live where you want invest where the
numbers make since
 Being C.R.A.P is no way to live and it
won’t lead to a happy retirement
 A.R.C.H. is a far better Goal
 Know your Acquisition Requirement cold
and execute when you find a deal
 Real Estate Investing will Test You over
and over again
 Couples must be Committed to this
business 100% (Tell Norris Drive Story)
 Affordability Index
 3 Quality Differences in Properties (Run
the Numbers and Time Commitments)
 Real Estate is a People Business and not
a Business that is won via Spreadsheets

Daily Content Posted – Subscribe Today
Interviews
Subscriber Questions
Real Talk
Walk Throughs
Buy the Book
Please Leave a 5 Star Review on Amazon – They are very
Helpful!!!
Follow Me: One Rental at a Time

Created Online Course for Busy
Professionals
Called: How to Start One Rental at a Time
only $99 until May 1 (Will be $199)
https://one-rental-at-a-
time.teachable.com/p/how-to-start-one-
rental-at-a-time
Last Creation to Help

THANK YOU – MAKE SURE YOU JOIN THE SELFIE PARTY

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W H Y I N V E S T O U T O F
S T A T E ?

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The Countdown
6 8
Months

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Estimated Growth From 2016 - 2025
6%
9%
7%
15%
11%
7%
24%
9%
12%
The warm, affordable,
pro-growth south will
attract 62% of the
household growth
Source: John Burns Real Estate Consulting, LLC

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The South will capture 7.8 million of the 12.5 million households added

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Construction has shifted south while California, the Midwest, and the
Northeast fell from 56% of construction in 1960 to 28% Today

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Where is BTK?
Current Markets
• Wisconsin
• Ohio
• Alabama
• Georgia
• Florida
2019-2020 Market Expansion
• Texas
• New Mexico

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Why a Turnkey?
1. Rehabs Monitored and Inspected – BTK pays for initial inspection
2. Deals analyzed for viability – BTK analyzes every deal before marketed
3. Neighborhood and markets analyzed and selected
4. Lenders in place – can loan in 48 states
5. Insurance provider in place – Real Protect
"One of the barriers to entry is just having the people, processes and systems in place that allow you to create
an efficient business model," - Dallas Tanner, Chief Investment Officer at Blackstone's Invitation Homes

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Our Brand Promises
“In 2017, we saw an opportunity in the marketplace. We grew determined after hearing stories
of turnkey disasters, price gouging and measly ROIs. We knew we could do it better. That was
the genesis of BTK and today our deal resume speaks for itself.” – Bobby Sharma
To Provide High
Quality Turnkey
Products
To Offer the Most
Competitive ROIs in
the Marketplace
To successfully
advise our clients
and ensure they are
given a client first
experience

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Let’s talk about the resume
Property Market Purchase Price Rent Annual ROI
Pisgah Huntsville $68,468 $850 18%
Mariellen Huntsville $89,742 $950 16%
214th Cleveland $80,000 $950 16%
Clovernook Milwaukee $113,500 $1,350 14%
Shenandoah Pittsburgh $125,900 $1,350 14%
Deerfield Huntsville $75,900 $825 17%
Coys Huntsville $154,000 $1,350 13%
Walden Cleveland $79,900 $950 15%
Ventura Huntsville $69,900 $695 15%
Harris Huntsville $73,709 $850 18%
Overhill Montgomery $84,900 $850 14%
Thraves Cleveland $70,000 $950 19%
Pulaski Huntsville $76,900 $895 18%
Harrison Montgomery $84,900 $850 14%
Dartmouth Montgomery $137,900 $1,395 15%
Suzanne Huntsville $74,900 $875 16%
Virginia Huntsville $109,000 $1,200 14%
Joslyn Pittsburgh $114,900 $1,250 13%
Garden City Pittsburgh $121,900 $1,350 15%
Perry Hill Montgomery $84,900 $850 14%
Q4 2018 & Q1 2019 Deal Resume Avg. Annual ROI: 15.4%

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Brad Katronis
V i c e P r e s i d e n t o f M a r k e t i n g - H e m l a n e

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Robert Boot
C E O o f M u l t i f a m i l y A d v i s o r s
Multifamily Advisors provides fully renovated, cash-flowing rental properties in 3 great markets in Alabama-
Birmingham, Montgomery and Huntsville. Because of low property taxes in Alabama, our properties are in the #1
cash flowing market in the country.
Together our team has analyzed, closed, renovated over 3800 properties in 9 states. We are experienced in
both large and small projects, from 300 unit apartment buildings, to single family houses. We bring our
experience and knowledge to our investors to help you grow your portfolio.

Market Spotlight
Our Southeast US Team

Agenda
01
02
03
04
05
Who is our power team in the Southeast?
Economic development and key market highlights
Up and coming neighborhoods & where is the region heading?
Typical deals
Next steps

Our Alabama Power Team
Over 30 years of total experience
Veteran Property Management Team: Over 20 years
managing properties in Birmingham and Montgomery, only
manages B and A class properties
Local Deal Hunters: we work with a few wholesalers and realtors
that have over 20 years of experience, Alabama natives
Experienced Rehab Team: 30 years experience, more
than 300 properties completed, focusing on single
family homes

Economic Development from 2000 to 2017
• CNN Money named Birmingham one of the 10 Hottest Housing Markets.
• Forbes ranked Birmingham 6th on its list of "New Industrial Boomtowns”.
• Kiplinger ranked Alabama 5th on its list of the “Most Tax Friendly States”.
• Forbes listed Birmingham as #1 on its list of “America’s Most Affordable Cities”.
• Birmingham was recently ranked 2nd in the nation for attracting millennial homebuyers & one of the
top 10 cities for job-seeking grads.
• Forbes listed Birmingham as one of the 15 U. S. Cities’ Emerging Downtowns.
• Birmingham recently made RealtyTrac’s list of “Top 25 Hidden Gem Single Family Rental Markets”.
• Birmingham ranks 54th in population among the nation’s top 268 metropolitan areas.
• The local economy is diversified with manufacturing, higher education, medical professions, auto
manufacturing and banking being among the top employers.
• It has three universities, four junior colleges, three technical schools, & three religious training
schools.
• 46 percent of the population are renters.
• Optimal climate for low maintenance.

MONTGOMERY
• Montgomery was ranked the #8 hottest housing market in the U.S. by CNN Money in 2014.
• The city has a low unemployment rate.
• It is a strong cash-flow market due to strong demand for rental housing.
• 8 colleges and universities in the city.
• The cost of living here is 5% lower the U.S. average while there are a number of good paying jobs in
the area.
• Site of Maxwell Air Force Base
• #1 Best Historic City –USA TODAY
• Home to Hyundai Motor Manufacturing
• Large Tourism Economy
• Government jobs, Medical jobs
• Processing hub for commodity crops such as cotton, peanuts, and soybeans.
• Montgomery has also had large metal fabrication and lumber production sectors.
• NEW AMAZON DISTRIBUTION CENTER

Alabama in the news
Military Growth
Government jobs
Rental demand
Trade
Investment in auto
Despite global trade tensions, the value of
Alabama exports topped $21 billion in 2018 on
increased shipments of chemicals, paper
products and aerospace parts to overseas
markets, figures from the U.S. Commerce
Department indicate.
Overall, Alabama exports totaled $21.3 billion
last year, falling just 2 percent shy of the
annual record total of $21.8 billion set in 2017,
figures indicate. Exports of Alabama goods
and services reached 191 countries in 2018.
8 Alabama firms claim 2019
Governor’s Trade Excellence
Awards; Aerostar, GKN Aerospace,
Help Lightning (tech), Polyvance
(auto), etc.
Amazon’s 855,000-square-foot facility is
being constructed on 133 acres of
property formerly owned by U.S. Steel
off Powder Plant Road in Bessemer,
located just minutes away from
Birmingham. Total investment in the
project is $325 million.

Alabama
Job Market
Labor force Birmingham
550,000
Diverse job
economy
• Mining, logging and Construction 2.7k
• Manufacturing 39.3k
• Trade & Transportation 108.4k
• Professional & business services 68.7 k
• Education & Health Services 74.6k
• Leisure & Hospitality 52.7k Government
jobs 84.3k
• Construction 28.5k
Labor force in Montgomery
172,000
Diverse job
economy
• Mining, logging and Const 6k
• Manufacturing 18k
• Trade & Transportation 29k
• Professional & business
services 22k
• Education & Health Services
20k
• Leisure & Hospitality 17k
• Government jobs 44k

The Alabama
Auto
manufacturing
Auto manufacturing to Watch in 2019
When Mercedes-Benz announced plans to open its only U.S. assembly plant in
Alabama in 1993, an industry was launched. Since then, Honda, Hyundai and Toyota,
as well as an expanding network of automotive suppliers, have joined Alabama’s
vehicle manufacturing industry. A new dimension was added to this industry when
Autocar, a maker of heavy-duty work trucks, launched production in the state. In a
generation, accelerating growth in this critical sector of Alabama’s economy has
turned the state into an important production hub for the industry.
•Nearly 1 million cars and light trucks produced in 2018
•Nearly 40,000 automotive manufacturing jobs
•More than 200 Tier 1 and 2 automotive suppliers in the state
•Toyota, Honda, and Hyundai produced about 1.6 million automotive engines in 2018
•Exports of Alabama-made vehicles and parts totaled $9.5 billion in 2017
•Alabama will produce 10 different passenger vehicle models in 2019
•Transportation equipment is Alabama’s No. 1 export category
•Alabama is the No. 3 auto exporting state
•Hyundai
•Honda
•Toyota
•Mercedes-Benz
•Autocar
•New Flyer

Typical Deals in Montgomery
B to A Class
Neighborhoods
Price
Range
Typical rent of a 3
bedroom and 2
bath
Rent
Range
Net of all expenses
and assumes 20%
mortgage at 5.5%
rate
Monthly
Net Cash
Flow
Total of 12 month
cash flows/ Total
capital invested
Annual
ROI
$80K
to
$110K
$800
To
$1200
$250
to
$400
15%
to
17%

Typical Deals in Birmingham
B Class
Neighborhoods
Price
Range
Typical rent of a 3
bedroom and 1.5
bath
Rent
Range
Net of all expenses
and assumes 20%
mortgage at 5.5%
rate
Monthly
Net Cash
Flow
Total of 12 month
cash flows/ Total
capital invested
Annual
ROI
$98K
to
$120K
$1000
To
$1300
$325
to
$450
16%
to
18%

Scope of work or SOW:
GC and PM work together to determine what needs to be renovated and to make house tenant
ready
Interior:
• Paint – two tone
• New flooring – carpet, vinyl or tile, refinish wood floors – dining rooms no carpet
• New light fixtures
• New Plumbing fixtures
• New outlet/switches and covers
• Change door handles and locks
• New appliances
• Baths – new vanity or paint existing, tub/shower area, toilet
• Doors – replace as necessary
• Kitchen - new countertops, paint cabinets, new sink, garbage disposal
• Check all electrical – upgrade if necessary
• Smoke detectors
• Water heater – replace is necessary
• HVAC – service or replace

Exterior:
Roof – have inspection completed, repair/replace as
necessary
Roof boots – replace as needed
Gutters – check
Soffits/fascia – repair as necessary
Doors – replace/repair as necessary
Windows – replace/repair as necessary
Paint – if necessary especially bare wood
Decks – repair, replace or remove
Screens – repair or replace
Landscape – trim trees and bushes, cut lawn
Out buildings – remove or repair
Pool – fill in
Driveway/walks/steps – repair or replace

Cost to do renovations:
With the SOW description determine pricing
What is overall cost basis?
Purchase price, closing costs, SOW
Gather comps for ARV and potential rent income:
RE agent, PM, we verify

Renovation start:
3-4 weeks average barring weather issues, material, inspections as needed
After rehab is finished – 3rd party home inspection is completed:
Review items listed by inspector – determine what needs to be correct or repaired
-not all items might be done on inspection list
Reinspect house
PM to walk house and inspect for tenant ready:
Review items listed and determine what will be completed
Section 8 tenants – house will be inspected
We try to take care of Section 8 items during rehab, but most tenants aren’t Section 8

After rehab and before sold:
We maintain the landscaping, unless tenant is placed
All utilities stay on
PM inspections the house 2-3 weeks to make sure all is okay
We do not install appliances until tenant moves in
PM will do a tenant move in list and have tenant sign
Items that tenant wants might be done – depends on request
We have a 90 day warranty of items
completed during rehab:
This is from the day house is sold whether a
tenant is already in place or not

Property Management:
A good PM is essential for positive relations with tenant
Regular inspections need to take place
Communication with owner is necessary
Some tenants will try to take advantage of situations regarding the house – requests and demands
Markets we are investing:
AL – Birmingham, Montgomery, Huntsville-will start soon
MS – Jackson to start soon
House values increase slow
Renting stays solid – mostly blue collar workers
House prices are low, but rents are solid for good returns

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O U R M I L W A U K E E T E A M

R EA L ESTATE MA R K ET OVERVIEW
Milwaukee, WI

Disclaimer!
The strategies mentioned in the presentation may not be appropriate for everyone;
other options not mentioned may be more suitable for your specific circumstances.
Consult your personal accountants, tax advisor and/or attorneys to discuss your
specific situation.
Past performance is no guarantee of future results. Real estate purchases are subject
to investment risks, including the possible loss of amounts invested.
While every effort is made to maintain accurate and current information, the
possibility of errors and/or updates always exists.

The Milwaukee Team
About Our Presenter
‖ Over 20 years experience
‖ Realtor
‖ Property Manager
CEO
Pat Jemmings
‖ Note Trader
‖ Actively rehabbing since 2005
‖ Lifelong real estate investor

The Milwaukee Team
Property Manager
‖ 14 years experience in property management
‖ Manages both single family and multi family
‖ Currently over 100 doors under management
‖ Less than 3% vacancy rate
‖ Less than 10% Section 8
‖ Average 17 days vacancy between tenants
‖ Website and software portal providing real time
visibility for asset and tenant information

About our Business and Properties
LOWER CRIME NEIGHBOURHOODS THIRD PARTY HOME INSPECTIONS
› All homes adhere to strict rehab standards
› Third party home inspections
› Focus on lower crime neighborhoods
› We invest in the same neighborhoods we sell
› Get properties from foreclosures, auctions, bank REO
› Typically have about five home available per month and can scale
› Almost all properties are “A” or “B”
› “C” properties are available if there is demand
Warranties
One year on rehab work

About our Property Management
LANDLORD FRIENDLY ONE YEAR WARRANTY ON RAHAB
› Landlord-friendly State
› Evictions take ~60 days
› Fees
- First tenant leasing fee: Free
- Monthly management fee: 8%
- Renew existing tenant lease: ½ month rent
- Subsequent tenant leasing fee: ½ month rent
- 12 Month rent guarantee!!

Best States Rankings
Quality of Life
Wisconsin was rated
03
04
05
06
07
08
Employment Gap by Gender
Social Environment
High School Graduation Rate
Power Grid Reliability
Opportunity
09 Health Insurance Enrollment

Located on Lake Michigan, about 90
miles North of Chicago
01
Number of square miles: 9701
Population: 600,00001
Average Household income: $56K01
Average Home Price: $108K01
Home to 20 colleges and universities01
About Milwaukee

Future Economy
In July 2017 Foxconn Technology Group, ranked 25th among
Fortune Global 500, announced plans to invest over
$10 Billion into a new manufacturing plant just south
of Milwaukee to start building glass screens for Apple,
Nintendo, Sony and many others. It is projected Foxconn
will result in tens of thousands of indirect and induced jobs
throughout Wisconsin and have at least $7 billion annual
economic impact statewide.

61
About Milwaukee
Wisconsin’s current unemployment rate is 3.2%
This is considered full employment by the U.S. government, meaning
everyone who wants a job has a job.
‖ Haribo - $242 Million - 400 new jobs making Gummi Bears
‖ Milwaukee Bucks Arena - $524 Million -2,100 new jobs
‖ Northwestern Mutual Tower - $450 Million -2,400 jobs
‖ BMO Harris Financial Center - $137 Million
Lots of Investment
‖ Foxconn Technology Group - $10 Billion
‖ 3,000 jobs initially/ 13,000 jobs eventually
This makes Foxconn the largest corporate attraction project by a foreign-
based company in U.S. history.

About Milwaukee
Using CrunchBase data, this is how much
venture capital money is funding startups in the
top 15 Midwestern regions.
From 2015 to 2016 venture funding declined
nationwide by 15%
During the same period it declined 21%
throughout the Midwest
Milwaukee is bucking the trend and is definitely
on the upswing
Region 2015 Funds Raised 2016 Funds Raised YoY %
Chicago $2,188,860,599 $1,429,618,214 -34.7%
Minneapolis $650,563,079 $534,892,142 -17.8%
St. Louis $260,104,837 $290,063,108 11.5%
Detroit $331,236,906 $267,857,568 -19.1%
Nashville $243,936,479 $238,502,480 -2.2%
Cleveland $232,874,255 $181,559,834 -22.0%
Indianapolis $162,919,100 $119,608,154 -26.6%
Cincinnati $111,179,241 $116,621,844 4.9%
Milwaukee $45,527,324 $111,853,050 145.7%
Kansas City $60,775,900 $76,409,388 25.7%
Columbus $75,520,891 $72,069,194 -4.6%
Louisville $19,062,177 $58,030,000 204.4%
Oklahoma City $57,918,748 $48,902,744 -15.6%
Omaha $118,266,280 $46,861,517 -60.4%
Little Rock $7,515,000 $8,300,000 10.5%
Total $4,566,260,816 $3,601,149,237 -21.1%

Milwaukee Fortune 500s Companies

Milwaukee Top Private Employers
› Diverse economy
› Weighted toward Healthcare, a very stable industry
› Does not include Federal, State or City jobs
Source: http://www.mmac.org/uploads/3/7/9/6/37962993/major_employers_list_14_pdf.pdf
Percent of Private Sector Jobs

On the Cutting Edge
The Water Council
The UN Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with 10 universally
accepted principles in the area of human rights, labor, environment and anti-corruption.
On April 28, 2009, The Water Council was inducted into the UN Global Compact Cities Programme. The Cities Programme, the urban arm of the United
Nations Global Compact, works directly with cities, regions and partners to progress social equality and justice, environmental sustainability and good
governance in the urban environment. Today Milwaukee is one of only 5 cities participating in the Cities Programme as an “Innovating City,” the highest
level of engagement.
The Water Council collaborates with global organizations that support
common goals for freshwater research, innovation, education and
business development.

OUR
RENOVATION
STANDARDS
Kitchen

OUR
RENOVATION
STANDARDS
Bathroom

OUR
RENOVATION
STANDARDS
Living Room

8311, Brentwood Rent
$1300
/month
1
Bathrooms
1220
Sq.Ft.
3
Bedrooms
8.3%
ROI
Purchase Price
$125,000
ESTIMATED First Year Cash Flow
$9,001
All information is deemed to be reliable but is not guaranteed. Buyer must confirm all information to their satisfaction. Buyer is also advised
to order all inspections necessary to satisfy themselves as to the condition of the property.

Pro-Forma: Financed
Purchase Price $125,000 Principle and Interest $568
Down Payment (20%) $25,000 Property Taxes $249
Estimated Closing Costs $1,250 Insurance $67
Initial Cash Invested $26,250 Property Management $104
Maintenance (5%) $65
Monthly Rental Income $1,300 Vacancy (5%) $65
Monthly Cash Flow $182 Total Monthly Costs $1,118
Annual Cash Flow $2,185 Cash on Cash ROI 8.32%

Down Payment $125,000 Property Taxes $249
Monthly Cash Flow $750 Total Monthly Costs $550
Pro-Forma: Cash

7810 W Clovernook
1
Bathrooms
967
Sq.Ft.
3
Bedrooms
14%
ROI
Purchase Price
$118,000
$9,906
Rent
$1,375
/month

Pro-Forma: Financed
Annual Cash Flow $3,474 Cash on Cash ROI 14%

Pro-Forma: Cash

4717 N 49th St.
1
Bathrooms
985
Sq.Ft.
3
Bedrooms
8.1%
ROI
Purchase Price
$110,000
$7,883
Rent
$1,150
/month

Pro-Forma: Financed

Pro-Forma: Cash

8757 W Bender
1.5
Bathrooms
1171
Sq.Ft.
3
Bedrooms
12%
ROI
Purchase Price
$111,000
$8,843
Rent
$1,250
/month

Pro-Forma: Financed
Annual Cash Flow $2,795 Cash on Cash ROI 12%

Pro-Forma: Cash

Summary : What Milwaukee Offers
“Under the Radar” Market01
Diverse, Stable, and Growing Economy02
Low Unemployment Rate03
Bright Economic Future04
High Cash Flow05
High rents compared to Property Prices06

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A S E C O N D W A Y T O P A S S I V E
I N C O M E

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Richard Thorton
M a n a g i n g P r i n c i p a l , A m e r i c a n N o t e C a p i t a l
Richard Thornton has Master’s degrees in both Urban Planning and Finance and over 30 years
experience in the real estate industry. In 1985 he co-founded a commercial mortgage company
which had a $8 BB loan portfolio at the time of its sale. He has invested in senior housing
facilities, flipped 18 houses, and has been a hard money lender. He currently invests in mortgage
notes and is the managing principal of American Note Capital.

Investing in
Mortgage
Notes
A Guide to Creating
Consistent, Stable, Passive,
Income

Richard Thornton
• Over 30 years experience in mortgage
industry
• Co-founded commercial mortgage company
that had an $8BB portfolio when sold
• Invested in Seniors Housing
• Hard Money Lender
• Flipped 18 houses
• Invests in Mortgage Notes

Types of Mortgage Notes
• Performing
• Re Performing
• Non Performing
• Create Notes Via REO

How to buy Notes?
• With a Self Directed IRA
• With a Roth Self Directed or
• With Cash
• Won’t work with a 1031 Exchange

Where to buy Notes
• Individuals
• Exchanges
• Banks ( Non Performing)
• Create Them

Ways to do business
• Broker Notes
• Buy and hold performing
• Buy and hold non performing
• Create notes by rehabbing REO/sell or hold note
• Creating notes for others
• Helping others out of problem situations

Financial Calculator
HP 12c or 10 bii

N= Number of years
I/YR= Interest Rate
PV = Loan Amount
PMT= Monthly Payment
Calculations

Performing Note
Example
Anderson, Indiana
Rate: 9.90%
Term : 360 Months
Remaining Payments: 273
Original loan Amount: $39,500
Unpaid Balance: $37,241.56

Performing Note Example
Anderson, IN
Rate: 9.90%
Term : 360
Original Loan Amount: $39,500
Purchase Price:
14.00%
$28,220.40

Whole Note Sale
Rate: 14.00% 10%
Unpaid Balance: 37,241.56
Purchase Price: $28,220.40
Sales Price: $36,966.82

Whole Note Sale
Rate: 14.00% 10%
Purchase Price: $28,220.40
Sales Price: $36,966.82
Profit on Sale: $8,746.42

Non Performing Note Example
Rockford, IL

Rockford, IL
Borrower Agrees to Resume Payments
Rate: 8.85% Return = 18.04% Term : 82
Note Purchase Price: $7,297.92 + Taxes $2,700= $9,997.92
Monthly Payments: $265.62

Rockford, IL
Borrower Defaults
Note Purchase Price: $9,997.92
Foreclosure Costs: $200
Renovation Costs: $10,000.00
Sales Costs: $1,000.00
Total: $21,197.92

Rockford, IL
Borrower Defaults – Sell to Investor
Total Investment: $21,197.92
Sold to Investor: $40,000.00
Down Payment: $20,000.00
New Loan Amount: $20,000
Term: 84 Months
Rate: 8.00%
Payment: $311.72

The Downside
• Illiquidity
• Default
• Easy Foreclosure for Land Contracts
• Low Investment to Value
• Sell Property
• Rent Property
• Sell Note to other note buyer

Determine a Biz Plan
• Do you have a day job?
• Do you want to work out of State?
• If so, in what states?
• Do you want to work with Performing?
• Do you prefer Non Performing or REO?
• What is your investor base?

Questions?
Richard Thornton
richard@amnotecap.com
510-918-9001

TheEntrustGroup.com 800.392.9653
The Entrust Group ("Entrust") does not
provide investment advice or endorse any
products.
All information and materials are for
educational purposes only. All parties are
encouraged to consult with their attorneys,
accountants and financial advisors before
entering into any type of investment.

About The Entrust Group
• Administrators for self-directed retirement
plans
• Leader in our industry
• 37 years of service
• Over 21,000 individual accounts
• Over $3.3 billion in investor assets

About The Entrust Group
• Knowledgeable Staff – CISP designations
• Nationwide offices
• National CE program
• National and local in-person events and
webinars
Entrust is the premier provider of self-directed retirement plans

1. What is a Self-Directed IRA?
• Greater opportunity for asset diversification outside of the traditional
stocks, bonds, and mutual funds
• A retirement account in which the individual investor is in charge of
making all investment decisions
• All securities and investments are held in an account administered by
a custodian or trustee
• Custodians and trustees have limited duties to investigate assets.
Due diligence is account-holder’s responsibility

Types of Investments Allowed
• Single-Family and Multi-Unit
Homes
• Commercial Property
• Improved or Unimproved Land
• Limited Liability Corporations
• Apartment Buildings, Co-Ops and
Condominiums
• Mortgage Notes
• Precious Metals
• Almost anything…

Investments Restrictions
• Collectibles:
• Any work of art,
• Any rug or antique,
• Any metal* or gem,
• Any stamp or coin*,
• Any alcoholic beverage
• Life Insurance
• S Corps (S corporation tax laws prohibit
IRAs to invest in them)
*Exceptions: Gold, silver, platinum &
palladium bullion of certain purity

2. What are the advantages of a self-directed IRA?
• Take control
• Make your own investment choices
• Diversification
• Invest in many different types of assets
• Invest in what you know & understand
• Tax savings
• Contributions may be tax deductible
• Tax-deferred or tax-free growth

3. If my IRA invests in a property, can I stay in it?
No, the property is for investment purposes only!
This means neither you, nor other disqualified persons, may use the
property.
Disqualified persons include spouse, ancestors and lineal descendants,
spouses of lineal descendants, fiduciaries, plan service providers, and
others defined under IRS Publication 590.

3. If my IRA invests in a property, can I stay in it?

4. If my IRA invests in a property, can I work on it?
No, you cannot work on the property because you are considered a
disqualified person to your IRA.
The direct or indirect furnishing of goods, services, or facilities
between an IRA and a disqualified person is not allowed.

5. Is a property manager required?
No, a property manager is not required.
However, many investors choose to use a property manager for the
purpose of consolidating various expenses, and to help avoid
conducting a prohibited transaction.

6. What happens to income and expenses?
Income and expenses must flow into and out of the IRA.
You cannot use personal funds to pay for expenses incurred by the
asset within your retirement account because it is prohibited under
IRS Code 4975.

7. Can I sell/transfer property that I own to my IRA ?
No, this is considered self-dealing and is a prohibited transaction.
Self-dealing is a form of conflict of interest in which the account owner
is taking action that would provide a personal benefit.

8. Can my IRA borrow to invest in real estate?
Yes, your IRA can obtain a non-recourse loan.
A non-recourse loan is secured only with collateral, which is usually
property. If the borrower defaults, the lender can seize only the
collateral.
The IRA is the borrower on the loan, and the loan documents are
signed by Entrust on behalf of the IRA owner.

9. Can my IRA partner with others on investments?
Yes! You can partner with anyone (even disqualified persons) at the
time of initial investment.
However, once the transaction is closed, your IRA cannot buy, sell, or
transfer to any disqualified person.

10. What is a single member LLC?
A limited liability company that is owned by a single person or entity.
If the LLC purchases a property, it holds the title. Single member LLCs
afford greater control to the investor. They are popular with IRA
investors as they enable the account holder to sign their own closing
documents, write their own checks, and save on account fees.

Get Started With Entrust
Purchase Your
Asset
Open an
Entrust
Account
Fund Your
Account
Three Easy Steps!
1 2 3
Transfer or rollover

Set up an account online easily,
in under 10 minutes at:
www.theentrustgroup.com/open-an-account
• Personal information
• A digital copy of identification
• Credit card information
To get started, be sure to have the following items:

Time for Questions

Thank You!
Bill Neville
Business Development Manager
Phone: (510) 587-0950 x237
Email: bneville@theentrustgroup.com

Pitc
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C L O S I N G S T A T E M E N T
For info on Deals or to set up a strategy call
tom@betterturnkey.com
bobby@betterturnkey.com

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