CA$HFLOW EXPRESS - Featuring Anthony Patrick with New Harvest Ventures

Ca$hFlow
EXPRESS
Passive Income for Today & Tomorrow PRICELESSVol. 2, No. 4, 2015
Continued on pg. 14
S
tep into the world of Anthony Patrick,
the CEO of New Harvest Ventures,
LLC. He’s a real estate investor who
loves sharing his wealth-building secrets
with everyone he meets. Patrick believes
education is an important path towards ful-
filling the American Dream; and he’s doing
his part to help improve people’s lives by
offering his knowledge to all who seek it.
Recently, we stepped into Anthony
Patrick’s latest wealth-building three-day
seminar. Our team exited the program and
bus tour inspired and eager to implement
the techniques we learned.
It is evident from his easy-manner and
frankness that Anthony Patrick truly enjoys
what he does. He says he loves to motivate
people and give them the knowledge to
start their own path towards success.
After attending his bootcamp, his stu-
dents are enthusiastic about also getting
into the business of scooping up neglected
houses, which nobody seems to want,
fixing them up, and then selling them for
a huge profit. What a great way to clean
up neighborhoods and build wealth at the
same time! It’s truly the American Dream for
Patrick, his wife, Mindy, and their team of
business partners.
Over the years, Anthony Patrick from
Rancho Cucamonga, Calif., and his partner,
Richard Endrosolin from Ventura, Calif.,
have mastered the art of flipping houses. It
certainly wasn’t easy at first and they both
made costly mistakes along the way, but
now they are reaping the financial rewards
of staying in the game.
Patrick admits real estate gets him ex-
cited. He says the entire transaction pro-
cess is enjoyable. “This business is truly my
passion. I feel blessed that I can do it and
that real estate is my life’s work.”
Because Patrick went through the
Resources for Investors - Tips from National Pros
Living the American Dream
Anthony Patrick and His Team
Profit in So Cal’s Inland Empire
countless trials and errors of learning
the business, he says he has a lot of
empathy for his students. “I’ve been
through everything and anything you
can imagine when it comes to flip-
ping a home,” he explains. He knows
about the rewards and the pitfalls too.
During his three-day bootcamp,
Anthony takes investors from around
the country on a tour of his local area,
to see the deals he has done, and
those that he is actively rehabbing.
He works with them side by side,
explaining his methods and reasons
for doing things the way he does.
“There’s a logic to every step in flip-
ping houses,” Patrick says.
By Lori Peebles, staff writer

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Co-publishedbyRealty411
CashFlow Express • Page 3
CONTENTS
1 The American Dream Is Realized
4 Publisher’s Letter - Due Diligence
6 From Rehabbing Homes to Hotels
10 It’s Time to Self Direct Your Future
12 Colony American Finance Wants to
Jumpstart Your SFR Portfolio
15 Lending Money with Land Trusts
18 Sensei’s Secrets to Tripling Profits
20 The Dangers of Turn-Key Rentals
21 Cashflow without Tenants or Toilets
22 Can’t Find Leads? Go with Probate!
30 Multifamily Gains Investor Interest
pg. 21
pg. 6
pg. 18
pg. 12
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Contact us online at:
Info@realty411guide.com
Or call: 805.693.1497
Alia Ott and her
partner, Terri
Garner, are
bullish about
investing in self
storage. Read
about Alia’s
journey in this
fascinating
niche.
Photographs above: Step inside
Stacee Nelson’s hotel rehab in Texas.
Colony
American
Finance
wants to
Jumpstart
Your SFR
Portfolio.

FOUNDER & EDITOR
Linda Pliagas
info@realty411guide.com
EDITORIAL STAFF
Tim Houghten
Stephanie Mojica
Lori Peebles
COPY EDITOR
Morgan Schaal
PHOTOGRAPHER
John DeCindis
Passive Income for Today & Tomorrow
Ca$hFlow
EXPRESS
Yes!You can be
rich from
owning real
estate and trading stocks.
We’ve all heard the story of the
little old lady who lived modestly
and worked as a school teach-
er for 40 years. She never
earned more than $35,000 per
year, owned a modest home,
and shared her life with two
cats. Once she died, her rela-
tives discovered a $150,000
life insurance policy and $1.5
million in stocks that she left
to the elementary school’s
scholarship fund.
The national media loves
to air these stories. It seems
there are several old ladies
who fit this seemly unique
profile year after year. How could
that be?
Investing in stocks is not the
world’s most challenging task. In
fact, at its core, it’s very simple. The
truth is that the stock market creates
millionaires every year. Investing in
stocks, with wealth in mind, is easier
than you think.
Invest In What You Know
Wanna be a good stock market in-
vestor? Keep it simple and start with
companies and products with which
you are familiar.
If you’ve ever opened a can of
Coca Cola on a hot summer day and
felt refreshed and invigorated, why
not own the stock? It’s a product you
know with a story you understand.
When I say “a story you understand,”
I mean to say that you understand
how the Coca Cola
Corporation makes
money, or to ex-
press it in Wall
Street terms, you
understand how
the company earns
revenue. The more
bottles and cans of
Coke that Coca
Cola sells around
the world each day,
the larger the com-
pany’s profit. Over
the past ten years Coke stock (symbol
KO) has risen from around $40 per
share to a high of $71 — $1000 in-
vested in Coca Cola stock ten years
ago would be worth $4,100 today;
$10,000 invested in Coca Cola stock
would be worth $41,000 today.
If you spend more than $100 per
year eating fast food, why not own
the stock? Over the past ten years
McDonalds stock (symbol MCD) has
risen from a low of $15 per share to a
high of $95 per share.
By Doug Carver
Organizer Pasadena and Burbank
Cashflow Meetup Groups
I
can remember my first time play-
ing Robert Kiyosaki’s Cashflow
board game about eight years
ago and how it
started a chain
of events that continues
to this day. What stuck
with me most was not the
“how to” of playing the
game but the people that
I met at the event. These
were not like the normal
people in my life that
would tell me I was crazy
for trying to start my own
real estate business or
that financial freedom was impossible
without a steady well-paying job. The
people I met were excited about learn-
ing and expanding their knowledge on
how to achieve financial freedom. They
were active investors in real estate and
the stock market. They were small busi-
ness owners with a passion and vision
for creating more financial success in
their lives. Overall, they had a mindset
for prosperity that I like to call a “Cash-
flow” mindset.
A lot of people complain that Kiyosaki
does not provide the specific details on
how people should implement his strat-
egies to create financial freedom in his
books and programs. Truth is he never
spells out a step-by-step “how to” for
building long-term financial freedom.
What he does teach is far more impor-
tant, and that is how to create a “Cash-
flow” mindset. Kiyosaki describes it in
his book Cashflow Quadrant moving
your mindset from the E (employee) and
S (self-employed) side of his Cashflow
quadrant to the B (business owner) and
I (investor) side of the quadrant. In lay-
man’s terms, it’s the mental shift from
someone who seeks financial security at
all costs to someone who can confidently
and knowledgeably take measured risks.
This is a simplistic definition but a very
important one to understand. Without the
correct mindset, it really doesn’t matter
how much you learn the “how to” of real
estate investing, trading stocks, building
a strong MLM business, etc. You will not
succeed. It’s like trying to grow corn in
a field of sand. The seeds will not germi-
nate and you’ll end up with next to noth-
ing to harvest in the fall.
How, you ask, does this relate to the
Cashflow game?
Well, after playing
the game a bunch
of times, I learned
the “how to” of
getting out of the
rat race, but I still
was not able to
take what I learned
from the game and
apply it to my real-
life financial situ-
ation. However, I
realized that the time I was spending with
my new Cashflow friends was changing
the way I thought about money and my
financial future. I no longer viewed the
stock market as a giant rigged system for
losing money. I began to see the tremen-
dous opportunities in the sinking real es-
tate market even as many people I knew
were losing money on deals that had gone
bad. Overall, I saw for the first time op-
portunities all around me to create wealth
even as the newspapers talked constantly
of the “Great Recession.”
Today as a result of my ongoing in-
volvement playing and organizing local
Cashflow events in Southern California,
I have a thriving real estate investing
business. It was after speaking with one
of my Cashflow friends who was a real
estate investor that I was encouraged to
start wholesaling distressed properties. It
turned out to be a great decision. More
recently, I’ve begun to learn how to suc-
cessfully trade in the stock market using
options. As a self-proclaimed real estate
“zealot”, I never would have dreamed of
investing in the equity markets. Howev-
er, after playing Cashflow 202 with my
Cashflow friend ,who is an active trader,
and learning about his trading system, I
was able to see the opportunity before
me. I now fully expect that investing in
the markets will be a huge part of my fu-
ture financial success in addition to my
Learn How to Create Stock
Market Wealth Today
Investors Manifest a
“Cashflow” Mindset
FREENo. 1 / Vol. 1 2012
Personal Finance News from the Publishers of Realty411 Magazine - www.Realty411Guide.com
Continued on pg. 2
Continued on pg. 12
By Tyrone Jackson
TheWealthyInvestor.net
Doug Carver (left) and Chris Hanson dis-
play the Cashflow game to group members.
Published by Realty411 Magazine
CashFlow Express is published in Santa Barbara County by Realty411. © Copyright 2015. All Rights
Reserved. Reproduction without permission is strictly prohibited. The opinions expressed by writers and
columnists are not endorsed by the publishers and/or editorial staff. Before investing in real estate,
stocks, bonds, mutual funds, gold, or securities, seek the advisement of a trusted financial advisor,
attorney or tax consultant. Investing in any asset and market sector is risky business and may result in
the loss of capital. Please invest responsibly. PRINTED IN THE USA ~ GOD BLESS AMERICA
DISCLOSURE AND INFORMATION - ATTENTION ALL:
The publications, events, expos and mixers produced and promoted by
Realty411guide.com, reWEALTHmag.com and/or their owners, em-
ployees, agents and affiliates (collectively “411”) are for informational
and entertainment purposes ONLY. The information and presentations
provided herein do not constitute an offer or solicitation to buy or sell
securities or real estate. Please be aware that real estate investing is
VERY RISKY. 411 is not responsible for any of the information provided
and/or statistical data presented, and 411 does not represent that any
information or opinions expressed and data provided reflect the opin-
ions, advice and research of the publishers, editors, columnists, ven-
dors, speakers, sponsors, guests who are in attendance at the events,
and do not reflect the opinions, advice or research of 411. By attending
411 events you acknowledge that the investment strategies mentioned
may not be suitable for you, that any real estate investment is inher-
ently risky, that all investments are subject to risks, which could result
in the entire loss of your investment, and that 411 is not responsible
for any losses or outcome of any investment made by you from or after
411 events, or as a result of contacts made at these events as well as
after reading 411 publications. You personally are 100% responsible for
your due diligence, for all investment information and for all decisions
with respect to any potential investment or transaction. 411 does not
endorse, and has not performed due diligence on any of the colum-
nists, advertisers, vendors, speakers, sponsors, companies and guests
who appear at our events or in our publications. The information pre-
sented at any 411 event related to any potential real estate investment
is general in nature and does not constitute legal, tax or investment ad-
vice. 411 strongly recommends that you seek the advice of your trusted
attorney, broker, CPA and/or financial adviser before taking action as
an investor. To contact us, please call (805) 693-1497.
Real estate, and all investing, is risky and may result in the entire
loss of your principal investment. Please invest responsibly.
track to wealth, which can often
times lead to utter disaster.
Recently, I ran into an ac-
quaintance at an event; she is a
very active investor in Southern
California. She disclosed that she
had a bad experience at one of the
local real estate investor clubs, one
which is no longer in operation.
If you take away anything from
this publication, please take my
advice: Spend time researching
people and companies before you
jump into a business relationship.
Be sure to ask for references
and actually call them. Check on-
line to see if there are any negative
reports. And, if your investment
is quite substantial, I would even
recommend doing a professional
background check as well.
You cannot be too careful with
your hard-earned money. It may
have taken decades to accumulate
that nest egg, don’t get excited
and rush into something with-
out having all the facts! I always
recommend seeing an investment
first-hand. I’ve invested in some
properties out of state and have
seen each one prior to making a
purchase - sometimes I visit twice!
Also make sure to invest in
what you understand. I like to keep
it simple with buy-and-hold rent-
als, the caveat is to purchase them
in emerging markets. Some people
like to invest in tax liens, notes
or even assisted living facilities.
Whichever path you choose, make
sure you fully comprehend your
investment choice.
It’s important to remember that
the higher the financial rewards,
generally, the greater the risk will
be. Be cautious, ask questions
and, as always, if we can help you
please don’t hesitate to contact our
office: 805.639.1497. Thank you, I
hope to see you in person soon!
Be Social and Receive Updates from Linda Pliagas on
Facebook, Twitter, LinkedIn, Pinterest, Ning, and Google+
FOUNDER
Linda Pliagas
pliagas@msn.com
EDITORIAL STAFF
Hannah Ash
Lori Peebles
Stephanie Mojica
COPY EDITOR
Lori Peebles
PHOTOGRAPHER
John DeCindis
PRODUCTION
Lori Peebles
Augusto Meneses
PUBLISHED BY
Realty411
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EVENTS & EXPOS
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Suzanne Lilly
Lawrence Ruano
WEBSITE
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TO REACH US, CALL:
310.499.9545
We provide complimentary copies
for your CashFlow group or REIA
Passive Income for Today & Tomorrow
Ca$hFlow
EXPRESS
Yes!You can be
rich from
owning real
estate and trading stocks.
We’ve all heard the story of the
little old lady who lived modestly
and worked as a school teach-
er for 40 years. She never
earned more than $35,000 per
year, owned a modest home,
and shared her life with two
cats. Once she died, her rela-
tives discovered a $150,000
life insurance policy and $1.5
million in stocks that she left
to the elementary school’s
scholarship fund.
The national media loves
to air these stories. It seems
there are several old ladies
who fit this seemly unique
profile year after year. How could
that be?
Investing in stocks is not the
world’s most challenging task. In
fact, at its core, it’s very simple. The
truth is that the stock market creates
millionaires every year. Investing in
stocks, with wealth in mind, is easier
than you think.
Invest In What You Know
Wanna be a good stock market in-
vestor? Keep it simple and start with
companies and products with which
you are familiar.
If you’ve ever opened a can of
Coca Cola on a hot summer day and
felt refreshed and invigorated, why
not own the stock? It’s a product you
know with a story you understand.
When I say “a story you understand,”
I mean to say that you understand
how the Coca Cola
Corporation makes
money, or to ex-
press it in Wall
Street terms, you
understand how
the company earns
revenue. The more
bottles and cans of
Coke that Coca
Cola sells around
the world each day,
the larger the com-
pany’s profit. Over
the past ten years Coke stock (symbol
KO) has risen from around $40 per
share to a high of $71 — $1000 in-
vested in Coca Cola stock ten years
ago would be worth $4,100 today;
$10,000 invested in Coca Cola stock
would be worth $41,000 today.
If you spend more than $100 per
year eating fast food, why not own
the stock? Over the past ten years
McDonalds stock (symbol MCD) has
risen from a low of $15 per share to a
high of $95 per share.
By Doug Carver
Organizer Pasadena and Burbank
Cashflow Meetup Groups
I
can remember my first time play-
ing Robert Kiyosaki’s Cashflow
board game about eight years
ago and how it
started a chain
of events that continues
to this day. What stuck
with me most was not the
“how to” of playing the
game but the people that
I met at the event. These
were not like the normal
people in my life that
would tell me I was crazy
for trying to start my own
real estate business or
that financial freedom was impossible
without a steady well-paying job. The
people I met were excited about learn-
ing and expanding their knowledge on
how to achieve financial freedom. They
were active investors in real estate and
the stock market. They were small busi-
ness owners with a passion and vision
for creating more financial success in
their lives. Overall, they had a mindset
for prosperity that I like to call a “Cash-
flow” mindset.
A lot of people complain that Kiyosaki
does not provide the specific details on
how people should implement his strat-
egies to create financial freedom in his
books and programs. Truth is he never
spells out a step-by-step “how to” for
building long-term financial freedom.
What he does teach is far more impor-
tant, and that is how to create a “Cash-
flow” mindset. Kiyosaki describes it in
his book Cashflow Quadrant moving
your mindset from the E (employee) and
S (self-employed) side of his Cashflow
quadrant to the B (business owner) and
I (investor) side of the quadrant. In lay-
man’s terms, it’s the mental shift from
someone who seeks financial security at
all costs to someone who can confidently
and knowledgeably take measured risks.
This is a simplistic definition but a very
important one to understand. Without the
correct mindset, it really doesn’t matter
how much you learn the “how to” of real
estate investing, trading stocks, building
a strong MLM business, etc. You will not
succeed. It’s like trying to grow corn in
a field of sand. The seeds will not germi-
nate and you’ll end up with next to noth-
ing to harvest in the fall.
How, you ask, does this relate to the
Cashflow game?
Well, after playing
the game a bunch
of times, I learned
the “how to” of
getting out of the
rat race, but I still
was not able to
take what I learned
from the game and
apply it to my real-
life financial situ-
ation. However, I
realized that the time I was spending with
my new Cashflow friends was changing
the way I thought about money and my
financial future. I no longer viewed the
stock market as a giant rigged system for
losing money. I began to see the tremen-
dous opportunities in the sinking real es-
tate market even as many people I knew
were losing money on deals that had gone
bad. Overall, I saw for the first time op-
portunities all around me to create wealth
even as the newspapers talked constantly
of the “Great Recession.”
Today as a result of my ongoing in-
volvement playing and organizing local
Cashflow events in Southern California,
I have a thriving real estate investing
business. It was after speaking with one
of my Cashflow friends who was a real
estate investor that I was encouraged to
start wholesaling distressed properties. It
turned out to be a great decision. More
recently, I’ve begun to learn how to suc-
cessfully trade in the stock market using
options. As a self-proclaimed real estate
“zealot”, I never would have dreamed of
investing in the equity markets. Howev-
er, after playing Cashflow 202 with my
Cashflow friend ,who is an active trader,
and learning about his trading system, I
was able to see the opportunity before
me. I now fully expect that investing in
the markets will be a huge part of my fu-
ture financial success in addition to my
Learn How to Create Stock
Market Wealth Today
Investors Manifest a
“Cashflow” Mindset
FREENo. 1 / Vol. 1 2012
Personal Finance News from the Publishers of Realty411 Magazine - www.Realty411Guide.com
Continued on pg. 2
Continued on pg. 12
By Tyrone Jackson
TheWealthyInvestor.net
Doug Carver (left) and Chris Hanson dis-
play the Cashflow game to group members.
Contents - 2014
1 FirstKey Lending Offers Options
4 Publisher’s Welcome Note
5 The Millionaire Maker Returns
6 Management Tips by Pam Texas
7 Out-of-State Investment Advice
9 Rehab with Andrew Cordle
10 Q-n-A with Zinc Financial
12 & 18 Attract Private Lenders
13 Investing in Texas Land
15 The Investment Lab is Open
16 Incorporate a Business
21 & 23 CashFlow Resources
24 Scenes from Our Expos
26 How to Avoid Capital Gains
From the Publishers of Realty411 Magazine
1604 Grant Ave., Novato, CA 94945 California Department of Real Estate Brokers #1897444
PRIVATE MONEY LOANS Beach, Seattle, Atlanta and even New York City just this year alone! It’s a
dream come true, and we plan on hosting many more expos and mixers around
the nation, including upcoming events in Florida, Missouri, Ohio, and Texas.
Our largest expo has attracted up to 300 people and our smaller events
regularly unite an exclusive group of veteran real estate leaders. We plan on
expanding our events even further. My goals are lofty: I envision some day
hosting international real estate conferences — this is precisely how much I
enjoy and believe in the power of networking.
It is a pleasure and privilege to meet the readers of our numerous publica-
tions. We produce our quarterly glossy Realty411 magazine, with Real Estate
Wealth as an alternate cover. We have separate distribution and websites for
each. The 100-page glossy is available at no charge at selected grocery stores,
and will soon be available in bookstores across the country.
Next, we have our REI Wealth Monthly, a digital and interactive issue spe-
cifically designed for online enjoyment. It was created for the Apple News-
stand by Noland Araracap, a San Diego-based technology enthusiast. Next, of
course, is our newspaper CashFlow Express, which is directly distributed at
our live expos and mixers, and at selected real estate events that we support
and sponsor around the country.
For the rest of the year, in addition to expanding our calendar of live ex-
pos, we will continue to expand our media and marketing company with spe-
cial print supplements and new online websites. We just completed our first
Private Money 411 Special Supplement and are starting the second! It is our
mission to be an all-encompassing resource of information for investors. In
closing, I’d like to add that if we can assist you in any way, or if you have any
feedback on our publications or events, please let me know. Your suggestions
and comments are always welcomed.
LindaPliagas
Contact us: 310.499.9545 or info@realty411guide.com
Be Social and Receive Regular Updates from Me on:
Facebook, Twitter, LinkedIn, Pinterest, Google+
DISCLOSURE AND INFORMATION FOR READERS AND EXPO GUESTS
The publications, events, expos and mixers promoted by Realty411guide.com and/
or their owners, employees agents and affiliates (collectively “411”) are for informa-
tional and entertainment purposes ONLY. The information and presentations provided
therein do not constitute an offer or solicitation to buy or sell securities or real estate.
Please be aware that real estate investing is VERY RISKY. 411 is not responsible for
any of the information provided and/or statistical data presented, and do not reflect
the opinions, advice or research of 411. You personally are 100% responsible for your
due diligence, for all investment information and for all decisions with respect to
any potential investment or transaction. 411 strongly recommends that you seek the
advice of your trusted attorney, broker, CPA and/or financial adviser before investing.
CashFlow Express is published in Santa Barbara County by Realty411. © Copyright 2013. All Rights
Reserved. Reproduction without permission is strictly prohibited. The opinions expressed by writers and
columnists are not endorsed by the publishers and/or editorial staff. Before investing in real estate,
stocks, bonds, mutual funds, gold, or securities, seek the advisement of a trusted financial advisor,
attorney or tax consultant. Investing in any asset and market sector is risky business and may result in
the loss of capital. Please invest responsibly. PRINTED IN THE USA ~ GOD BLESS AMERICA
Connect to our virtual network ~ Search for us here:
Welcome to
Cashflow
Express
T
hanks for joining us for a
new edition of Cashflow
Express. I developed this
newspaper a couple of years after
the onset of our glossy magazine,
Realty411, and our alternate cov-
er Real Estate Wealth, because of
my love for newspapers.
The plain newsprint paper was
what lured me into pursuing a
degree in journalism. I’ve always
loved the way newspapers look
and feel so thought it would be
creative to develop one as a spe-
cial gift for our guests who attend
our expos around the country.
That’s really how it all devel-
oped; and we’ve been producing
Cashflow Express for a number
of years now. It’s wonderful to
see ideas and aspirations turn
into reality. I feel very fortunate
to be able to provide valuable
information to others who are
interested in learning about real
estate. I’m very involved in the
production of each issue, includ-
ing the design. It’s a wonderful
creative outlet for me.
While being at the forefront of
the investment industry has been
a positive experience, for the
most part, my position has also
led me to experience stress and
anxiety. Particularly, when I hear
about negative experiences that
occur in our industry.
I cannot stress how important
it is for all investors to take the
time to do the most thorough
due diligence they possibly can
BEFORE investing with anyone,
whether you meet them at a real
estate club, a national expo like
ours, or the many other places
these people may be lurking. Be
skeptical and do your homework.
The allure for quick profit in
this industry unfortunately at-
tracts people who may not have
the best interest at heart for oth-
ers. We have to put our profes-
sion in perspective: The entry to
the real estate industry is easy
compared to other high-income
fields, which require advanced
degrees that can take years to
complete.
Again, the industry seems to
have the illusion of being a fast
PRESIDENT
Nikolaos K. Pliagas
PRODUCTION
Lori Peebles
Augusto Meneses
PUBLISHED BY
Realty411 Magazine
EVENTS & EXPOS
Colby Sorrenson
WEBSITE
Maria Victoria
CONTENTS - FALL 2015
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T
hroughout the years, I have met many phenomenal
people at our live events throughout the country. One
of the perks about this business is that after a while
you begin to know some on a personal level and begin
to follow their progress as an investor. When I met
Stacee Nelson years ago, she was busy rehabbing a single family
residence in Santa Barbara. The project was a major rehab and
the property was stripped down to the bare bones. Nelson is not
one to shy away from complicated deals, she takes on projects
with certainty and confidence. It’s been interesting to follow Nel-
son through her progression from rehabbing single-family homes
to her risk-taking efforts in purchasing water-front properties,
REO tapes, and now even a hotel.
LINDA: How long have you been investing in real estate?
STACEE: I purchased my first condo when I was 22 and then
didn’t invest in anything for a long time. When I was living in Ger-
many I started going to real estate auctions at the courthouse. My
friend was buying properties to renovate and hold. I tagged along.
In 2011, living in Santa Barbara, I began my formal education in
real estate investing and purchased my first flip house in 2012.
LINDA: I even saw one of your projects in Santa Barbara a
couple of years ago. What attracted you to the hotel niche?
STACEE: The idea of renovating an empty building into a small
boutique hotel was initially the idea of my business partner. At the
time we were looking for alternative passive income opportunities
REHAB
From Rehabbing Homes
to Renovating a Hotel
as well as ways to create a positive impact on communities. An opportu-
nity presented itself in the form of an empty 15,000 square foot building
directly on the town square in Gonzales, Texas. The town was keen to
redevelop their downtown, which made for a win-win opportunity.
Continued on pg. 8
Interview
By
Linda
Pliagas

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Continued on pg. 28
LINDA: Was it easier to take on the challenge
and expense of a hotel rehab after doing
many single-family home deals?
STACEE: Initially we thought it would be a
comparable project, just larger in scope. What
we learned was that renovating an empty build-
ing into a hotel with individual plumbing, HVAC,
cable, etc. was far more complicated and costly
than anticipated. Certainly having a background
in single-family home renovations was crucial in
the planning and budgeting, but we were sur-
prised by the sheer volume of issues that arose
during the construction phase. The next one will
go much more smoothly as a result of the num-
ber of lessons we learned.
LINDA: Tell us about the hotel. Where and
how did you find it?
STACEE: My business partner has a long-time
family friend living and investing in the town.
He made the initial introductions to the town’s
economic development council who were very
interested in supporting business growth in the
area. Their support was a critical factor in the
decision to purchase in Gonzales, Texas.
We toured numerous vacant buildings in the
area until we found one large enough and with a
perfect location directly on the town square.
LINDA: How long did the rehab take? Did the
entire property have to be worked on or only
a section?
STACEE: The rehab took over a year to com-
plete. There were a number of delays in the
project especially when our initial contractor was
removed from the project. One of our important
lessons from this project, was to have a project
manager on-site during the construction phase.
The volume of issues was simply magnified by
one hundred versus a single family renovation.
Our hands-on project manager made the differ-
ence in our ultimate success and project comple-
tion.
To provide an idea of the complexity of a
project like this: the smoke and fire alarm sys-
tems had to be coordinated with the installation
of electricity and plumbing (water sprinklers),
the HVAC system required coordination in tim-
ing with the electrician, drywall installer (ceil-
ing vents) and the roofer (where the systems
are housed), the water coming into the building
had to be separated between the hotel and the
restaurant located on the ground floor, and the
elevator turned into a complicated project all by
itself.
LINDA: What was the biggest lesson you’ve
learned from this transaction?
STACEE: Rather than give one, I’m going to pro-
vide a few lessons we learned from this project:
For large projects, invest in a project manager
who is on-site and regularly reporting on prog-
ress.
Have the contractor regularly send pictures
and review before progress payments are made.
It’s a necessity to have a detailed project plan
and budget agreed on, in writing, by the contrac-
tor. We thought we had sufficient detail in our
initial project summary based on our housing
rehab experience. What we learned is you can’t
be to detailed oriented in the budget and plan-
ning phase. The more detailed the budget and
contractor commitments are, the better.
Include a split between labor and materi-
als so it is very clear for both sides, especially
when you choose materials. Have the contrac-
tor sign the agreements. Budget sufficiently for
contingencies. The larger and more complex the
project is, the greater the likelihood for additional
unplanned expenses.
Have an agreed process for change orders
that includes approving changes and costs be-
fore the work is completed.
LINDA: How is the hotel performing now?
What are your goals with the property?
STACEE: The hotel looks fantastic. The reviews
of the guests who have stayed there are over-
whelmingly positive. While we positioned the
boutique hotel to provide executive-style accom-
modations for the local oil industry, the major-
ity of our guests thus far are visiting Gonzales,
Texas, for the regional rodeo events, the hot rod
show, the summer concert series, and many his-
torical events. Gonzales, Texas is known as the
place where the first shot of the Texas Revolu-
tion was fired.
LINDA: Wow, that really sounds exciting!
Now, In addition to hotels and single-family
homes, your company also invests in Marina
and resort properties around the world, is
that correct?
STACEE: Yes. We looked at a variety of differ-
ent passive income and commercial real estate
opportunities and decided that marina and resort
properties were ideal: It is a relatively untapped
From Rehabbing Homes to Renovating a Hotel, pg. 6

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F I N A N C I A L , L L C

By Tim Houghten, staff writer
elf-directed individual retirement ac-
counts or IRAs are rapidly growing in
popularity, but experts warn that it is
important to only get into such an in-
vestment with proper education and professional
guidance.
Kaaren Hall, owner of uDirect IRA Services in
Orange County, California, says even after more
than two decades in the financial industry and
six years of running her company, she too must
continually stay on top of her investment educa-
tion, particularly regarding Internal Revenue
Service guidelines for retirement accounts.
Self-directed IRAs allow people to invest their
retirement funds into a variety of options outside
of the traditional stock market, including real
estate, land, and private notes.
“Financial literacy is not taught in schools, but
our future depends on understanding it,” Hall
says. “Only about 4 percent of U.S. investors
have a self-directed IRA. Why?”
Because most investors and many advisors
simply aren’t aware of it.
It’s Time to Self Direct Your Future
We understand the details and challenges involved with property development and can work with you through the phases of development to
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■ Flexible 6 – 24 months
■ No prepayment penalties
■ Interest reserve or pay-current available
■ Rates starting at 9%
■ We fund loans from $500,000 up to $5 million
■ Primarily in the southwestern states
But even those who are aware of the
potential financial power of self-
directed IRAs often do not fully
comprehend the IRS guidelines
of “prohibited transactions,” ac-
cording to Hall.
“You’re not allowed to have
any personal benefit from your
IRA prior to retirement,” Hall
says.
A common misconception
among investors is that they can
use the self-directed IRA funds
to purchase real estate or other
property from themselves or close
relatives such as a spouse, a child, a
grandchild, a parent, a grandparent and
any spouses of such relatives. These transac-
tions are not permitted under self-directed IRAs,
according to Hall. However, an investor could
purchase property from a more distant relative
such as a sibling, a cousin, a niece, or an uncle.
“Make sure you know what you’re doing,” Hall
says. “We’re here to help people so they under-
stand the twists and turns as much as possible.
I’ve educated
tens of thou-
sands of people
about the use
of self-directed
IRAs and
uDirect IRA
Services is set
up to serve and
educate self-directed IRA inves-
tors.”
The term self-directed in
itself misleads some people
because it is the IRA doing
the investing, Hall adds.
“So that’s confusing
because they get into
trouble by maybe sign-
ing a purchase contract
(in their own name),” she
says. “Your IRA can’t buy
an asset that you own.”
Consequently, people
should wait until they actually
open an account with a quali-
fied custodian before funding it and
making transactions, Hall says. Gener-
ally, a custodian rather than the actual investor
should sign purchase contracts relevant to self-
directed IRAs.
While representatives of companies such as
uDirect IRA do not give actual investment ad-
vice due to potential legal liability, they can help
people follow ever-changing IRS guidelines.
Hall, a former mortgage broker whose work
history includes Bank of American and Indymac
Bank, has educated tens of thousands of inves-
tors into deciding whether self-directed IRAs
are right for them. She and her associates have
directly worked with thousands of clients.
To learn more about self-directed IRAs, call
866-447-6598 or visit: www.uDirectIRA.com
Financial literacy is not taught in schools,
but our future depends on understanding
it,” Hall says. “Only about 4 percent of U.S.
investors have a self-directed IRA. Why?
“
”

REALTY411 EVENTSREALTY411 EVENTS
LOS ANGELES - CA$HFLOW Expo West Coast
Network with investors from around the nation!
September 19th - 9 am, Complimentary Book
LAS VEGAS, NV - 2nd Viva Las Vegas Expo
Event hosted with Real Estate Insider’s Club
October 24th - 9 am, Play & Learn in Vegas
SEATTLE, WA - Network in the Northwest
With Real Estate Association of the Puget Sound
August 15th - 9 am in Bellevue, Washington
NAPA VALLEY, CA - CRUSH It Expo 2015
Hosted by BAWB, Bay Area Wealth Builders
October 3rd - 8 am, It’s Harvest Time in Napa
NEW YORK CITY, NY - CA$HFLOW Expo East
Hosted with REIA NYC - Meet Us in Manhattan
November 7th - 9 am, Focus on Finance
DALLAS, TX - Giving Thanks / Giving Back
Lone Star State Expo with Dennis Henson, AREA
November 21st - 9 am to 5 pm, Charity Expo!
Our expos recently received exposure here:

D
o you think that
you might have
missed the boat
to invest in single-
family rental homes? The
answer is a resounding NO!
We all remember
2005-2007, when it
seemed that inves-
tors couldn’t make a
mistake in the resi-
dential fix and flip
market.  Investors
with little experience
were able to outbid the competition, slap
some minor paint and carpet improve-
ments, and then sell their properties for
incredible returns. But then the bubble
burst, and many investors were left with
homes that couldn’t be sold or in some
cases, even given away. They had two
choices: Give up the properties through
foreclosure or become a landlord.
RENTAL DEMAND
OUTPACES EXPECTATIONS
Statistics show that nearly 35% of
Americans now rent instead of own.
Drill further into the statistics and you’ll
find that 35% of renters choose single-
family homes and 19% choose duplexes,
triplexes or fourplexes. With these two
categories encompassing 54% of all
rental choices, it makes perfect sense
that investors are looking to 1-4 unit
properties instead of owning larger multi-
family apartment-style buildings. 1-4 unit
properties have a lower price point, the
ownership risk is spread out among mul-
tiple structures, and the overall expense
ratio is lower. Renters in single family
housing tend to pay their own utilities,
maintain the landscaping themselves
and have access to municipal water/
sewer/garbage at a much lower rate than
through private service.
Rental demand is projected to
change significantly over the next ten
years, primarily driven by the changing
nature of the household. Baby boom-
ers are moving in with their children or
into senior housing, and millennials are
favoring renting over owning because of
its flexibility and lower commitment level.
Being well versed in the changing market
is the key to having a profitable portfolio.
Also noteworthy is that there are an
estimated 14 million rental homes owned
by non-institutional investors in the United
States – most of which are owned free and
clear. Quick math: Using 14 million rental
homes at an average value of $100,000 each,
that’s potentially $1.4 trillion in new loans that
can be originated and re-invested into the
market.
Colony American Finance has multiple
financing options available so you can ac-
cess your portfolio’s equity and quickly put it
to work to buy additional properties, invest in
your children’s education, or simply replenish
your cash position.
KNOWLEDGE IS POWER
The savviest investor will do three things:
Research, research and more research.
Mortgage brokers and real estate brokers
have invaluable information, such as market
trends and vacancy rates, as well as access
to properties that might not be listed for sale.
But it’s significantly more critical for investors
to have access to capital: Both liquid cash
and innovative financing.
No longer is the SFR rental market mo-
nopolized by private money loans with steep
interest rates and fees or the more traditional
Fannie/Freddie product that caps out at 5-10
properties. Colony American Finance provides
non-recourse term loans for stabilized portfo-
lios and fix and flip lines of credit for acquisi-
tion funding.
FIX/FLIP LINES OF CREDIT
If you want to grow your portfolio or per-
haps don’t yet own a rental portfolio, a line
of credit is definitely the right choice. Colony
American Finance offers two different line of
credit options, depending on investor experi-
ence and short-term/long-term goals.
Our Entrepreneurial Line of Credit is a
non-revolving, declining line designed for the
investor who does less than 20 fix/flip projects
per year and only within the 1-4 unit residen-
tial arena. Line amounts start at $500,000
and go upwards of $5,000,000. Borrowers
have 12 months to utilize the proceeds and 12
months to pay back each draw. This loan has
no prepayment penalties.
For the more active investor, our Institu-
tional Line of Credit offers additional flexibility
as it allows for both residential 1-4 unit prop-
erties and commercial properties up to 20
units. The Institutional Line of Credit is also
a revolving line, meaning you can access the
funds multiple times. Line amounts start at
Colony American Finance Wants
to Jumpstart Your SFR Portfolio
Rental demand is projected to change significant-
ly over the next ten years, primarily driven by the
changing nature of the household.
By Jennifer Goralski, Vice President

NewDirectionIRA.com
(877)742-1270
Real Estate IRAsResidential, commercial, notes,
fix and hold, fix and flip, and more.
$3,000,000 and can go as high as $50,000,000.
Borrowers have 12 months to access the pro-
ceeds and typically nine months to repay each
draw. This is a non-recourse loan and has no
prepayment penalties.
Also important to note is that you can utilize
either the Entrepreneurial or Institutional Line of
Credit to build your own personal rental portfolio.
Once you have completed the renovations on
your fix/flip properties, you can look to refinance
your holdings into one of Colony American Fi-
nance’s term loans.
NON-RECOURSE TERM LOAN OPTIONS
If your SFR rental portfolio has five or more
properties, Colony American Finance is your op-
tion for attractive financing options. Our loans
are underwritten like a commercial loan, which
means no more debt-to-income ratios hurting you
when qualifying. Rather, your portfolio is under-
written on the assets and the cash flow generated
from those assets. Plus, because we lend across
the U.S., a single-term loan can be made on port-
folios with holdings in multiple states.
Our rates are competitive with traditional
FNMA loans, are amortized over 30 years and
can be fixed for five or ten years. Our loan
amounts start at $500,000 and can go up to $100
million – and almost all term loans are available
on a non-recourse basis. Important too, is that
borrowers can have multiple tranches of loans to
facilitate estate planning or property management
issues.
REGIONAL STRATEGIES
Auction.com recently released data that
showed investors are favoring buy-and-hold
strategies over fix/flip on a nationwide basis, but
that investor intent varies between online/offline
investors, regions, and property prices. Mid-
westerners and Southerners are more likely to
buy and hold whereas those in the Northeast are
more likely to fix/flip. Investors in the western
states are evenly split between fix/flip and buy/
hold strategies.
Whatever your investment style, we have the
capital for either strategy. It’s an exciting time
to be an investor; trends indicate that the rental
market will continue to improve over the next
decade. Colony American Finance is ready to
provide meaningful and cost-effective financing
options for your portfolio.
-Jennifer Goralski has been a lender since 1993
and has an in-depth knowledge of single fam-
ily home portfolio lending. She is available to be
reached at 310.752.5287 or at Jennifer.goralski@
colonyamericanfinance.com
R
ealtyMogul.com, the online
marketplace for real es-
tate investing, announced
that Michael Sanchez and
Charles H. Kim, CFA will join the com-
pany’s Commercial Lending Division.
RealtyMogul.com recently secured
$250 million in capital commitments
from institutional investors for bridge
and permanent lending in commercial
real estate, and Sanchez and Kim will
further facilitate the company’s ex-
plosive growth and expansion in the
commercial real estate debt markets.
Sanchez and Kim, who helped
launch Colony Mortgage Capital in
2013 and have originated and ex-
ecuted nearly $1 billion of senior and
mezzanine loans since its inception,
will be responsible for generating sub-
stantial new commercial business for
RealtyMogul.com.
They will lend their considerable
experience to provide strategic coun-
sel on the real estate capital markets.
“High caliber talent such as Mi-
chael and Charles are rare. It’s a tes-
tament of RealtyMogul.com’s market
position and platform that these two
industry leaders would choose to join
our team from Colony Capital,” said
Jilliene Helman, CEO of RealtyMogul.
com. “We are thrilled they are com-
ing aboard our platform, as they will
help us further
build Realty-
Mogul.com into
a world-class
commercial real
estate capital
markets player.”
Sanchez has
over 25 years
of commercial
real estate
experience, with
an emphasis
on structured
finance and
portfolio man-
agement.
Sanchez
earned a B.S.
degree in real
estate finance
from California
State Polytechnic University.
Kim brings an equally impressive track
record in real estate finance, with more
than 15 years of experience in origination,
underwriting and execution of financing
transactions across various asset types.
He holds a B.S. in management sci-
ence from University of California, San Di-
ego, and has an MBA from USC’s Marshall
School of Business. He also holds the
Chartered Financial Analyst designation.
RealtyMogul.com Adds Two Top
Commercial Real Estate Producers
New Hires Speak Volumes in the Company’s
Aggressive Expansion of Experienced Talent
Kim
Sanchez

Everything is explained and everything is revealed.
Anthony often repeats himself just to ensure that ev-
eryone understands it. Patrick realizes that many of his
students are embarking into unknown territory, and as
he states, “doesn’t want you to make the same mis-
takes that I made when I learned the business.”
Every few months, Patrick disembarks with a bus
load of eager students from throughout California and
around the nation. Investors of all ages are anxious
to learn how to rehabilitate distressed properties and
make a handsome profit doing so.
Patrick’s American Dream was realized through real
estate. He began as a handyman, then graduated to a
real estate inspector. Today, he has flipped hundreds
of houses and has also shared the stage with influ-
ential leaders of wealth, such as Donald Trump, Suze
Orman and Ron LeGrand.
Although he prides himself as being a “self-made
man,” Patrick acknowledges that he’s had a lot of help
to get where he is today.
“My beautiful wife, Mindy, is my right hand. And
I have a phenomenal team of brokers, real estate
agents, rehabbers, contractors and investors who have
been instrumental to my success.”
Patrick describes himself as a man of faith: “God
has guided my way throughout this journey,” he con-
fides.
Before we conclude the interview, we asked Patrick
if he had any last-minute suggestions for our read-
ers. He replied: “Don’t wait to invest, start now. Many
people don’t believe they have the money to start
investing, but did you know that you could use some of
your home’s equity or your 401(k) retirement plan from
work? You can even use money from your IRA account
to get started.”
Patrick believes almost anyone can succeed in
real estate with the proper mentor, education, motiva-
tion, and passion.
Sign up for one of Anthony’s weekend seminars. They
are held in Rancho Cucamonga, Calif. The team’s
mission is to transform the lives of others and improve
their quality of life. Call Anthony Patrick at New Har-
vest Ventures, LLC and ask how you can sign up to
learn the art of successful real estate investing.
For information, call (909) 694-2221.
Anthony Patrick holds the future
in his hand. As an entrepreneur
and real estate investor, Anthony
Patrick likes to be in control of
his future and says real estate has
fulfilled his “American Dream”.
Anthony Patrick credits his success to his team of experts. They make work not only
profitable but also fun. Anthony says he surrounds himself with people he cares about
and his team includes his wife, Mindy Booker (red shirt), and his sister, Elvie Gil-Jund
(white shirt), and long-time friend Richard Endrosolin (green shirt). His broker, Scott Ch-
eramie (red tie), is also an important part of New Harvest Ventures, LLC, as well as team
members Robert McGrauth (ivory shirt) and Joe Lopez (black shirt).
Anthony Patrick was a guest speaker at a MORSynergy event produced by MOR Financial.
Living the American Dream: Anthony Patrick’s Testimonial, pg. 1
Anthony Patrick has rehabbed hundreds of homes in the Inland Empire.

T
his article will discuss the
ins and outs of borrowing
money when property is
held in a Land Trust AND
how to lend money to a Land Trust
using the property in the trust for col-
lateral.
First, it is important to understand
that if you are buying property and
financing it through a conventional
loan that must be qualified using
secondary market guidelines, you
will generally NOT be able to close
directly into your Land Trust. The
only exception to this rule (that I am
aware of as of this writing) is Bank of
America. If you are buying property
in Illinois AND using an Illinois Land
Trust Agreement, BOA
will let you close directly into a Land
Trust. This leaves 99% of the rest of
us out in the cold.
However, BOA (and many other
conventional lenders) will only allow
you to obtain four secondary market
loans and then they cut you off! So, if
you are very active in the real estate
game you will be forced to obtain
your loans via a Portfolio Lender
(where the loan is NOT qualified
in the secondary market) or Private
Lenders. Most Portfolio
Lenders WILL let you close directly
into your Land Trust (with your
Trustee signing the mortgage on the
property held in trust as collateral for
your loan).
Closing directly into a Land Trust
is the smartest way to obtain title be-
cause your personal name is NEVER
in the chain of title. It is much easier
to use a Private Lender when borrow-
ing money using a Land Trust. And
you can be much more creative using
a Land Trust (especially when there
are multiple Private Lenders in-
volved) than if you held title in your
own name.
Case in point. Bob needed $50,000
to fund his next real estate deal, but
he did not want to go to a bank to
borrow the money. Not only do banks
charge high interest rates but they
want full collateral no matter how
much money you want to borrow.
Bob had $100,000 of equity in one
of his properties, but only needed
$50,000. If Bob borrowed from a
bank they would require Bob’s entire
equity to be used as collateral for a
$50,000 loan (50% Loan-to-Value).
Since Bob’s property was held in
a Land Trust he could assign varying
percentages of the Beneficial Interest
to multiple Private Lenders. For ex-
ample, he could borrow $10,000 from
five different Private Lenders and
give them each an Assignment of Ben-
eficial Interest equal to the percentage
of ownership in the Trust (equity =
$100,000 / 10,000 = 10%
ownership per Private Lender).
Some of the other advantages of
borrowing this way are; no credit
check, no public knowledge of the
transaction, no reporting to the credit
agencies and the remaining equity is
still available for additional borrow-
ing, if needed.
Let’s turn the tables on this scenario
and look at this from the lender’s
viewpoint. If I were the lender I
would want to have the title
checked to make sure the property
being borrowed against was in fact in
the Land Trust that I was lending
to. I would also want to make sure
there were no other loans against the
property (other than what might have
been represented by the borrower).
Furthermore, I would demand the
filing of a UUC-1 form that would
secure my position against
the Beneficial Interest (which is
personal property NOT real estate).
I would also want a statement from
the Trustee of the Land Trust confirm-
ing her knowledge of my loan and
security interest given.
In Ferraro V. Parker 229 So2d 621
(1969) the court ruled that a collateral
assignment of a beneficial interest in
a Land Trust would not be treated as
a mortgage, nor require foreclosure
nor entitle any party to any redemp-
tive rights. However, Illinois case
law indicates that, where a trust is
created simultaneously with a financ-
ing arrangement, it might be deemed
a mortgage. The bottom line to all
of this legal talk is that if the Trust
Agreement is created PRIOR to a
financing arrangement, the Beneficial
Interest can be secured by a UUC-
1 and repossessed without going to
court. This process works really well
when selling to long-term tenants that
you want to convert to buyers of the
property they live in.
This article has discussed the
methods of borrowing and lending on
property that is held in a Land Trust.
We learned that using a Land Trust
to hold title to investment real estate
provides many ways to creatively
finance property.
We also learned that borrowing
money on property held in a Land
Trust gives the borrower many more
options than conventional lenders
provide. Additionally, we learned that
selling property held in Trust to cur-
rent tenants is more secure and less
risky than conventional contract sales.
Randy Hughes
aka, Mr. Land Trust™
P.P.S. If you want to jumpstart your
Land Trust education, go to my online
FREE training right now for more on
how to create your own Land Trusts
immediately. Here is the link:
www.landtrustwebinar.com. If you
have a Land Trust question pick up
the phone and call me! I actually an-
swer my own phone. 866-696-7347 or
email: randy@mrlandtrust.net
Borrowing and Lending
Money with LAND TRUSTS
By Randy Hughes,
“Mr. Land Trust”

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R
eal estate is the invest-
ment for intelligent inves-
tors today. But where
do you find the time and great
returns without sacrificing every-
thing else you love doing?
The Status Quo & Investment
Strategies that Fit
There appears to be nothing safer to invest
in than real estate today. The returns are
pretty attractive too. But when sophisticated
investors and busy professionals look at how
most others are investing, it can start to ap-
pear challenging.
If you are a doctor, lawyer, professor, or
even successful artist – you don’t want to
ditch a great career you are passionate about
to start from scratch learning about being a
landlord.
Now hands-on fixing and flipping houses
and managing your own rental properties can
be great for those who don’t really love their
jobs, or need a new source of income. But
it’s a different story if you are already putting
in 40 hours a week in something you like. Or
Real Estate Investing:
How to Make 3 Times
More Returns Than
Your Friends
if you are already financially independent and
don’t want to cramp your free lifestyle.
If this is you, your friends might be invested
in REITs, real estate company stocks or even
turnkey rental property programs. These can
be great ways to diversify a portfolio. But
stocks and REITs are really too volatile.
Turnkey rentals are great. They provide
automatic passive income and all the perks of
direct investment in property. But is that the
best you can do in returns and getting ahead?
You Can’t Afford Not to Demand More
The problem is that the vast majority of indi-
viduals and couples are way behind on retire-
ment savings and wealth building. The aver-
age 401(k) balance is only around $100,000.
Recent data from the Federal Reserve shows
that retirement savings and investment bal-
ances drop to almost half by the time individu-
als are in retirement.
That means retirees are burning through half
of their retirement funds within a year or two
of exiting the workforce. Data 360 reports the
average life expectancy in the United States is
now just shy of 80 years old, and rising.
The bottom line is that whether you have
Turnkey rentals are great. They provide au-
tomatic passive income and all the perks of
direct investment in property. But is that the
best you can do in returns and getting ahead?
double the average savings or even eight
times your salary saved today – it just isn’t go-
ing to be enough. Not by a long shot. So how
do you get ahead?
Continued on pg. 28
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DANGERSDANGERS
By Kathy Fettke, Real Wealth Network
LANDLORD
appeared to have a quite an impressive system in
place, so I decided to pay a visit.
What I found was the owners were very
young – in their 20s and had only a couple years
experience in real estate. When they showed
me their available properties, I thought we were
walking through their newly acquired homes just
out of foreclosure and in pre-renovation phase.
You can imagine my horror when they proud-
ly told me these were their turn-key homes. It
appeared that no renovation had been done at all.
In fact, there was not even a handle on the very
old, rusty oven.
I told them their properties did not meet our
strict criteria, and they quickly replied, “That’s
OK. We’ve already sold these to out-of-state
investors. We have a wait list.”
I asked if the buyers ever came to see what
they were buying. They said, “Never.”
These kids were expert internet marketers.
They were not turn-key rental operators. I was
amazed at how trusting their buyers must have
been to unknowingly purchase such garbage.
The 10 Most Common
Signs of Dangerous Turn-
Key Rental Operators
Real estate investing is really not hard to get
right – IF you use the protective measures avail-
able to you like property inspections, appraisals
and rent verifications.
When it comes to working with
a turn-key property company, here
are just a few of the things we
look for at the outset when vetting
teams.
1. Inexperienced Operators
If they don’t have a solid track
record, they will be practicing and
learning with YOUR money.
2. Not Walking the Talk
If they don’t own a portfolio of
rental property, they won’t really
know first-hand what it takes to
succeed.
3. Lone Rangers
If they don’t have a team to sup-
port them, you won’t be supported
either – especially if anything hap-
pens to them.
does the buying, renovating, leasing and manage-
ment of your rental property, and all you have to
do is deposit rent checks.
Unfortunately, most of these misinformed
investors end up writing checks and making few
deposits.
The problem is that most people trust what
other people tell them. They believe the market-
ing message.
For example, have you ever bought Fiji
water? The marketing is beautiful and makes you
feel like you’re drinking right out of a waterfall
on a tropical island. But the Cleveland Water
Department ran tests comparing Fiji Water to
Cleveland tap water and found arsenic, human
feces and other contaminants in the Fiji Water.
False advertising is often used to market “turn-
key properties.”
At Real Wealth Network, we are constantly
bombarded with companies who want to come
speak at our events. Before they can do so, they
must be thoroughly vetted to determine if their
version of “turn-key” is the same as ours.
I noticed one company was especially
savvy at internet marketing. From the
looks of their marketing, they
More and more sellers
are throwing out the term
“turn-key rental property”
in hopes they can attract
out-of-state buyers. But
what do they really mean
by ‘turn-key’?
I heard a fellow podcaster
state recently that all you have to do to pro-
vide turn-key property is buy a home, get it
rented, put it under management and voila!
You can flip “turn-key” property at retail pric-
ing to eager out-of-state investors!
This is certainly not our definition of
turn-key. Unfortunately, turn-key means ab-
solutely nothing anymore.
Uneducated buyers assume turn-key
means that you don’t have to do a thing. The
belief (or false hope) is that someone else
M
Continued on pg. 26

FREE PROBATE HOME SYSTEM REPORT: Access @ www.dfprobatesystem.com
One of my mentors always used to
say “there are riches in niches”
and that couldn’t be more true in
the world of real estate investing.
I
nvesting is not a “one size fits all” venture - some
people love the challenge of turning trashy houses
into beautiful homes, while others love to become
passive lenders or landlords such that they can ac-
count for a more predictable payment stream. We
all need to find our own niche that works best for our
available time, financial resources and personality types.
Once an investor finds that “one thing,” the key is to really
stick with it long enough to implement efficient systems
and push through the challenges that inevitably occur.
Growing up in a household with two stay-at-home par-
ents; one focused on retirement hobbies and the other an
active community volunteer, I was inspired to seek a fi-
nancial path that would allow my time, talent and income
to support my philanthropic goals and family-focused life-
style. It was the combination of my “WHY” mixed with
my enthusiastic curiosity of investment properties that be-
gan my quest for financial freedom via real estate. I was
specifically focused on finding an investment strategy that
required minimal time with maximum returns over a long
term view, and after 13 years of actively doing what felt
like the Goldilocks approach to leveraging different strat-
egies, my Investors in Action business partner Terri and I
stumbled into a niche that was “Just Right” - and that was
self storage.
Prior to meeting Terri in 2009, we had both independent-
ly tried our hands at flipping and renting residential prop-
erties. Upon closing my first “fixer” in 2002, my friend
gave me a financial calculator and bottle of Pepto-Bismol
as if to say “buckle up for a crazy ride.” Little did I realize
that I would eventually tear half that first house down and
become my own general contractor rebuilding it from the
ground up. If you casually knew me, you would not likely
envision me jack-hammering concrete slabs or tearing up
the roof with a Sawzall... but I took every DIY opportunity
to get my hands on the power tools and make the best of
it. Demolition Days included “Weapons of Mass Destruc-
tion” where friends would grab
a hard hat and sledgehammer
to take a whack at the wall,
date nights consisted of a dump
run followed by a trip to Home
Depot with the trailer. Taco
Tuesdays with the crew were a
regular affair. It was exhaust-
ing yet exhilarating, and pro-
vided many memorable learn-
ing experiences that I would
reflect upon fondly. That said,
I quickly realized that my
sharp-shooting nail gun skills
would not be my fastest path
to financial freedom, nor was
there anything “passive” about
rehabbing.
After hanging up the prover-
bial hard hat, my next “Goldi-
locks” adventure would con-
sist of becoming a landlord.
My first rental experience
started out with the rosiest of
outlooks, my team took all the
right steps that the gurus teach
you to do: LLC - check; market growth and
neighborhood evaluation - check; reputable
property manager - check. We found a ten-
ant willing to pay us one year in advance.
No worries with rent collections or evictions
you’d think right!? Little did we know later
that this nice young lady was running some
sort of establishment “ill suited” for this
cute little Tennessee neighborhood. When it
came time to renew the lease, she was gone
and our manager whom was embarrassed
by the property condition buried his head in
the sand like an ostrich. Left behind in the
house were things that investor nightmares
and scary campfire stories are made of. My
point of sharing this is not to scare any
readers from owning residential rentals
(We’ve owned other rentals with great
tenants, managers and solid returns).
I just prefer lessening my landlording
headaches by renting space to people’s
“stuff” vs. where they actually live.
By 2010, Terri and I had established
our company, Investors in Action, and
focused attention towards private lend-
ing and notes. “Being the Bank” as we
like to call it, has been a very success-
ful strategy for us - especially in the up-
CashFlow without
Tenants or Toilets
NICHE
Continued on pg. 26
By Alia Ott, Co-Founder of Investors in Action

T
he real estate industry is
changing. With more and
more competition in the
marketplace, challenges in
getting a loan and cautious
homeowners staying put, it
can be nearly impossible to
find property that you might be interested in
purchasing for your real estate portfolio. Is
there a solution? Is there a way to combat
the real estate lead shortage that has per-
meated virtually the entire industry and has
stalled your efforts at investing?
What new and experienced real estate
investors are seeing in the market is a
fundamental change that may last for the
foreseeable future. Overall, the nation is
experiencing a shortage in the amount of
properties that are being put on the market,
leading to a lack of leads. This is creating
increased pricing on homes that are for sale
and issues in trying to build and acquire a
real estate portfolio.
WHY A SHORTAGE IN REAL ESTATE?
The shortage in real estate leads that is
occurring in most areas of the United States
is due to issues in the lending industry that
started several years ago and that continue
today. With it becoming more and more
difficult to qualify for a mortgage, homeown-
ers are holding onto their homes instead
of buying and moving because they have
no other option. Homeowners that want to
expand their homes are simply adding on or
remodeling to avoid the issues with lenders
and the hassles in moving. This is leading to
a painful shortage in the real estate market.
The Philadelphia Inquirer agrees: “Some ob-
servers believe they are seeing the emerg-
ing signs of a housing shortage. . . Predict-
ing how much housing is needed involves a
complex calculus that weighs hard statistics
(new-home starts, sales of previously owned
homes) against a certain amount of demo-
graphic tea-leaf reading (household-forma-
tion forecasts). Thus, there isn’t complete
consensus on what will be enough.”
As mentioned, while the overall interest
rate is the lowest it has been in years, there
are few people with good enough credit to
purchase a home. When someone does de-
cide to sell their home it is usually because
they have to move for a job relocation or for
another pressing matter, such as medical
treatment or because they need to down-
size – or they are in the enviable position of
having good enough credit that they were
able to secure a pre-approval on a new loan to
purchase a bigger home.
How does this create a shortage? Since
lending is tight, fewer people can afford to put
their homes on the market. That means that
the availability of homes has decreased. To
add to the shortfall, the slow economy has led
to a construction slowdown, which means that
fewer homes are being built to accommodate
new communities and homes that are being
torn down.
Overall, this has led to a painful real estate
shortage for much of the nation. The Sacra-
mento Business Journal reported that, “One
analysis of the region’s housing market thinks
there’s just not enough for sale. Again. A
shortage of inventory is driving everything in
the residential market from pricing to rental
affordability, according to Zillow. One reason
for that is a lingering hangover for the build-
ing industry from the housing bust of the last
decade, said Svenja Gudell, senior director
of research with Zillow. Though the economy
began to recover three years ago, housing con-
struction is still lagging, she said. In 2012 and
2013, only 159 new home permits were issued
for every 1,000 new residents, according to Zil-
low.” The overall lack of new homes available
and the persistent challenge in getting a loan
is creating issues for investors as they try to
navigate few options and high prices.
HOUSING SHORTAGE EQUALS
INFLATED PRICES
Most economists will tell you that the
biggest drivers in the market are supply and
demand. As you can imagine, decreased
supply in the housing market means that
pricing has skyrocketed, something that real
estate investors simply cannot afford when
they are looking for business opportunities.
The Sacramento Business Journal reported
that, “For both renters and homeowners,
Sacramento is now defined by Zillow as one
of the 10 least affordable metro areas in the
country. Mortgage payments here take up 26
percent of income, compared to 15.3 percent
nationally. Though the percentage is lower
than Sacramento’s historic mortgage pay-
ment percentage of 29.5 percent, Zillow noted
buyers at the moment also tend to have lower
When You Can’t Find
Real Estate Leads,
LOOK TO PROBATE!
TOOLS
Continued on pg. 30
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US Probate Leads

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Now there’s a headline for
real estate investors. When I
was in my 20s making $100
a month in positive cash
flow that was exciting. Now
that I’m in my 50s, it doesn’t
cut it at all. That doesn’t
even pay for dinner or a
round of golf.
W
hen you do the math, in order
to make $10,000 a month at
$100 a month, I would need
100 single-family homes to
make that happen. That’s a
lot of tenants, toilets and turnover to make
the money that I need to live on, to thrive and
to be able to bless those around me. Maybe
I could do it with 50 homes but the pay day is
still way out in the future. I want the cash flow
right now. Can you relate to that?
I’ve been investing in real estate for over
30 years. Through all of that time I have
learned many things but one stands out
above the rest: Cashflow Is King.
If I do a fix and flip and make $100,000 in
profit that is terrific. BUT, then I am unem-
ployed until I find my next project. Finding
that next project where I can buy it far enough
under the ARV to be able to make a reason-
able profit is harder then ever in the current
market. The reality is the average profit on
a fix and flip is about $9,600 period. Hardly
worth the effort.
I’d much rather
do one deal that
makes me $100,000
a year, every year
for the rest of my
life. That is the
opportunity with
Residential Assisted
Living. People are
aging and they will
need help. The baby
boomers are not
even in the homes
yet. They are 15 to
20 years away. This
is a huge opportu-
nity now, and it will
continue to grow for
the next 20 years.
You will be in-
volved one way or the other.
I tell people that ask me how they can do
this in their own cities that one way or an-
other they will be involved in Assisted Living.
You will either be the owner or the resident
lying in the bed. For those that choose to
ignore this opportunity, I am perfectly fine
with that because I need residents and you
are welcome to move into my home when you
are ready.
One of the areas that has held people
from getting involved is a lack of information
and understanding on what this is and what it
isn’t. The paper work and the licensing can seem
daunting to the person that has never done it
before. But when someone holds your hand and
walks you through the process, all of the mystery
and confusion falls away.
There are hoops to jump through no doubt.
But once you are on the other side, well, it’s a
never-ending pay day. For me that is what this
is all about. Think about this. If you did just one
Residential Assisted Living project this year that
produces $10,000 a month in NET income, would
you be able to live the life that you are living
today, but without the financial stress? Could
you quit your job if you wanted to? Would your
spouse be happier that you had
steady solid income?
If you need more money
you can do two homes or just
do one nicer home. If this is
making sense you can learn
more online at: www.ALFtrainin-
gAcademy.com
For 30 years I have been
looking for a better way to make
cash flow for the long-term and
I found it with residential assis-
tant living. One deal and you’re
done. I teach people how to
do this all over the country and
they’re always amazed that with
one single property they can
clear in net cash flow $5,000,
$10,000 or even $20,000 per
month or more. They are blown
away and wish they had done it
sooner.
There are three opportunities in this niche
and I’ll lay them out for you.
• Opportunity one. Own the real estate and
lease it to long-term, low impact tenants for up to
twice the fair market rent
• Opportunity two. Operate the residential
assisted living care home and make $5,000,
$10,000 or more a month in net income.
• Opportunity three. Own and operate.
Own the real estate and operate the residential
assisted-living business. When you own the real
estate and own the business that’s when you can
Continued on pg. 27
Maximize your profits. That is the holy grail of
cashflow and security.
By the way, I don’t work “in” the home myself
on a daily basis. I may not even visit the homes
for weeks at a time. I would say the average time
I spend on a weekly basis is less than 10 hours
a week. If I wanted to completely turn over the
reins I could do it with virtually no time invested
on a daily or weekly basis. It’s all about setting
up the proper structure and running it like a busi-
ness.
That’s what I do. I own the real estate and
operate the business for maximum profit. That’s
what I teach my students how to do at the ALF
training academy. If you are looking for a career
change, this is the ticket. That is why it is the
only thing that I do now.
One of the questions I get quite often is: Can
I do this in a house I already own? The answer
is, it depends. Does it have the right character-
istics? is it in the right neighborhood? Is it in the
right geographical location? Are the demograph-
ics right? Those are all easily answered questions
when you know what to look for.
This is not the field of dreams where if you
build it they will come. That is a mistake that
some people make when they try to figure this out
on their own. I would rather learn from someone
else’s mistake than my own. That’s why I show
my students how to do it step-by-step, starting
with the right location, then it’s the right property.
By the time the training is done, they can very
quickly analyze whether a property is right for this
or not.
The Tsunami of opportunity with the baby
boomers is simply unstoppable. There are
77,000,000 Baby Boomers. Right now, there are
10,000 people a day turning 65 years old. They
don’t move into an assisted living facility. But
there are 4,000 people a day turning 85 years old
and thousands of them will. The average length of
stay is 3 1/2 years. That’s a lot of opportunity for
us to take advantage of.
The average price for a single person to live
in a private room nationwide is $3,500 per month.
It’s not paid for by the state or Medicaid or Medi-
care, in most cases they pay much less than that.
By Gene Guarino, CFP
Single-family home rentals are dead!

“Self storage may not be right for every investor, but it’s the
perfect fit for us and it’s definitely without regret that we went
through our Goldilocks approach to trying different strategies.”
4. Lacking Systems
If they aren’t organized with the right software
and systems, they will get overwhelmed and be
unable to serve you over the long term.
5. They Operate in the ‘Hood
I think C-properties can look real good on paper,
but reality is a different story. Stay away from
properties under $50,000 because they tend to be
in high crime, high vandalism areas.
6. Shoddy Renovations
If they are not fully renovating the property, they
are just making a profit and leaving you with re-
pairs. Demand that all plumbing, roofing, HVAC,
boilers, foundations and electrical be upgraded to
code – and get inspections to verify.
7. Rental or Vacancy Guarantees
There are no guarantees in real estate and a rental
guarantee won’t be necessary if you buy right.
Most operators who make guarantees have pad-
ded the price of the property at the outset. Make
sure you really understand market rents.
8. Over-Market Pricing
Many turn-key operators sell their properties
above market value. Out-of-state investors from
high-priced markets are targets because they
don’t understand local values and think every-
thing is a deal because it’s so much cheaper.
9. Inexperienced Property Management
Many turn-key operators choose to do their own
property management. If they do not have at least
two years experience with lower than average va-
cancy rates – don’t use them or you
will be part of their learning curve!
10. A History of Fraud
It is astounding how many scam
artists are attracted to the real estate
business. It’s worse than used car
salesmen! This is an easy fix – get
back ground checks. We’ve already
done this work. Use our research.
At Real Wealth Network, we
have vetted dozens of so-called
“turn-key” operators and are happy
to share our research with our mem-
bers. Basic membership is free.
You can join at online at:
www.RealWealthNetwork.com
Once you are a member, you can
meet with one of our investment
counselors to get their feedback on
property you are considering buy-
ing. We have the information you
need to make the right decision. We
are also happy to provide you with a list of truly
turn-key companies who have rave reviews from
our 16,000 members. These companies find proper-
ties at wholesale prices in good neighborhoods near
jobs. They then renovate the properties to like-
new condition. They screen tenants to very strict
standards and offer on-going, excellent property
management in place. Call 888-RWNETWORK or
email kathy@realwealthnetwork.com for a referral.
About the Author: Kathy Fettke is the CEO
and Co-Founder of Real Wealth Network and
author of the Amazon best-seller “Retire Rich
with Rentals.” She specializes in helping
people build multi-million dollar real estate
portfolios through creative finance and plan-
ning. Kathy is also host of The Real Wealth
Show and is a frequent guest on FOX Business
News, CNN, CNBC and CBS MarketWatch.
The Dangers of Turn-Key Rental Property, pg. 20
swing from 2010 to date, where we specialized
in gap funding and buying deeply discounted
notes. This strategy while still profitable, be-
came far less lucrative as more money began
chasing skinnier deals than great deals needing
money.
The downside of it was also that it was
transactional, meaning we’d have to place the
money once a deal was paid off. As this trend
continued, we started to contemplate putting our
attention on long-term cashflow with lower risk,
fewer transactions and sought asset types that
have greater resistance to market fluctuations.
And that is when *IT* happened; an 11th hour
request to lend on a self storage deal came in.
It was one of those serendipitous deals that was
perfectly aligned with our strategy discussions
and long-term cashflow plans. Even better, this
property allowed us to roll up our sleeves with
an experienced partner and learn the business
“hands on,” all while earning a steady rate of
return on our loan.
Self Storage, in our biased opinion, is one
of the best investment niches out there. Oper-
ating and maintenance costs are relatively low,
while the returns are typically higher than other
asset classes. With people downsizing, urbaniz-
ing and moving - there is an increasing demand
for space to put excess personal possessions and
the method of dealing with non-paying tenants
is very simple. When a tenant stops paying their
rent, we have the ability to lock them out of their
unit until they pay or turn their personal property
over to an auctioneer to recoup our losses - a pro-
cess which has been dramatized by the television
show “Storage Wars.”
The Investors in Action team focuses on “re-
positioning” storage properties. In other words,
we buy low-priced, lower occupancy properties,
often in small to mid-sized metro areas.
Our strategy is to stabilize the property by
increasing the number of tenants and easing in
higher rental rates - then we cashflow them for the
long haul.
Self Storage investing takes into account both
macro and micro economics. Of course, you need
to manage your property correctly and buy in a
stable market at a price point and CAP Rate that
supports your desired returns. It’s very important
to survey the competition and population demo-
graphics within 5-10 miles of your subject prop-
erty to ensure that stabilization is possible if you
are purchasing an under-performing property.
Our unique formula for success is actually
rather simple; it’s a blend of good management,
online marketing, value add components (such as
vehicle parking) and partnerships with national
moving brands (like uHaul) that make us suc-
cessful in our ability to quickly turn properties
around.
Self storage may not be right for every
investor, but it’s the perfect fit for us and it’s
definitely without regret that we went through
our Goldilocks approach to trying different
strategies. Every aspect of our professional
and investment journey has given us a variety
of unique tools and skills to put in our investor
tool belt - from evaluating deals to raising capi-
tal and managing remote properties.
We love sharing our enthusiasm for the
business and enjoy helping other investors learn
from our experience as well. To learn more
about what we do, please visit us at www.inves-
torsinaction.com
Alia Ott is a best-selling co-author of the book
“Initiative” and certified advanced project
manager from Stanford University. Alia and her
business partner, Terri Garner, are founders of
Investors in Action and managers of a private
syndication, which invests in self storage prop-
erties.
Cashflow without Tenants or Toilets, pg. 21

NETWORK
Single-Family Home Rentals Are Dead! pg. 26
I don’t focus on that, I focus on private
pay because that’s where the bigger
money and opportunity is.
You truly have the opportunity
to do good as you do well. There’s
nothing wrong with making money. I
think a lot of us are looking for a way
that we can contribute, and to do
something for others. This brings both
worlds together perfectly.
Everybody needs to live some-
place and if somebody gets older they
need more help. Many kids can’t quit
their jobs to care for mom and dad on
the daily basis. So they hire in-home
care or they may bring them to an
assisted living facility. Typically the
big-box facilities that have 100 or 200
people are not very home like.
There may be one caregiver for
every 15 residents. It may be an
apartment-like context where it’s 100
yards to get to breakfast.
That isn’t what most people really
want. They want to live in a home
where they are well taken care of and
loved. Mom and Dad want to live in
a home that feels like a home, where
they get home-cooked meals and the
caregiver ratio to resident is more like one care-
giver for every five residents. That’s what we pro-
vide with Residential Assisted Living.
I got into this field for two reasons:
One, I couldn’t find a place that I wanted for
my mom when it was her time.
Two, I knew that there were millions of people
in my same situation who needed help too. I know
the megatrend of the baby boomers was here,
Gene Guarino is a Certified Financial Planner
in the U.S. and in Australia. He has been in-
vesting in real estate for over 30 years. For-
merly a professional musician and always an
entrepreneur, Guarino has owned and operated
16 businesses. Today Guarino does just one
thing, Residential Assisted Living. Plus, he
teaches people who want to do the same thing
from all over the country how to do it too.
but I didn’t think I wanted to “own” a hospital or
nursing home. But using a residential home and
turning it into a cashflow machine, doing good
and doing well that’s the best of all worlds.
If you’d like to learn more about this, feel
free to contact me through my website at: www.
ALFtrainingacademy.com I have a home-study
course as well as a three-day training, if you’d
like to learn more.
Scenes from Realty411’s Long Island Real Estate Investor Expo in Hauppauge, New York, top left corner to right: Manolis Sfinarolakis
from Patch of Land discussed how crowdfunding is changing the real estate landscape; James E. Clark with Clark’s Laws PC warned
about common mistakes made when investing; The team from Kitchen Liquidators; Our expo charity of choice was Long Island Cares,
The Harry Chapin Food Bank. Our guests donated canned food and many made donations as well; The Long Island Real Estate Inves-
tor Expo was sponsored by Carl and Eilene Schiovone, founders of East Coast REIA. Here they are photographed with Linda Pliagas,
Realty411 founder; Claude Diamond motivated guests with fantastic tips; Liz Trebotich spoke on behalf of Growth Equity Group.
Photography courtesy of Bill Moseley. Join our network to be invited to our national events: http://Realty411Guide.com/network

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