The Master of
Vol. 1 • No. 4 • 2011
Get Out of the
Rat Race with
Now is the
Time to Buy!
the RE Divas
Welcome to Sam’s RE Club
at the Beverly Hills Country Club
ReceiveChris&Ruth’s“Property Analyzer”andguideto“How To Start Your Flipping Business”
Chris & Ruth
Property Flipping Experts
Share their Secrets on how to rehab and flip properties
for Big Profits in this great Foreclosure Market
in the Southern California Area.
562-304-7787 or log on to: CaliforniaHomesRepos.com/blog/realty411
Upcoming Property Tour Event
Check our website for Calendar of Events in Southern California Only.
NATIONAL REAL ESTATE
INSURANCE GROUP, LLC
Realty411Guide.com PAGE 5 • 2011 reWEALTHmag.com
Questions? Need a Referral?
805.693.1497 or 310.499.9545
contents8 and 22 Top secrets from master investor and educator
10 An interview with Sam Sadat, the
director of Sam’s Real Estate Club.
15 Invest with the best, invest with
19 Entrepreneur and
investor Kent Clothier
takes the road less
traveled and succeeds.
20 Black Belt
Investors teaches us
how to master the art
of the flip.
24 True Wholesale
Houses delivers steady
returns for investors in
a volatile industry.
27 Market spotlight: Kevin
and Alex are at the forefront of multiple
top South Eastern markets.
28 Americans Flip to Australians in AZ.
29 Tyrone Jackson wants to diversify your
real estate portfolio with stocks.
30 Christian and Ruth teach Southern
Californians their property rehab secrets.
33 Richard Barrett asks: What is
your real estate time?
34 In memory: Fred Tingley’s
last real estate column for fans.
35 Market spotlight: Phoenix, Ariz.
36 Top 20 excuses for failure.
38 Gary and George’s monopoly secret.
39 to 53 Meet the hip real
estate divas of today:
Ladies in the industry give
their advice and tips.
54 Maximize your legal protection.
57 Inside the cashflow board games.
58 Tom Wilson gives his insight on the market recovery.
61 Guild Mortgage clarifies misconceptions about financing.
Photo credits top right and clockwise: Sam Sadat, Kent Clothier,
Kathy Fettke, Terica Kindred, Tyrone Jackson and Jay Hinrichs
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WE UNDERSTAND THAT EACH REAL
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What risks do investors take by working with Zero Money Investments
and how does Zero Money Investments mitigate those risks?
ouldn’t you love to discover
how to make $9,700 plus in
passive income month after
month… and how to reap huge positive
cash flows from real estate — with less
risk, less money down, and no tenant
I’ll tell you what, if you want to collect
an automatic monthly income of $9,700
or more — without having to get up ev-
ery morning and “go to work” — then
you need to know that most real estate
experts are giving you the wrong ad-
See, they rave about buying and selling
single family homes, but they don’t tell
you about the risks and downsides. They
don’t admit that single family homes are
poor investments for passive income...
for attaining real financial freedom.
Now don’t get me wrong, if you can
wait a few years for your upside, single
family homes have a history of appreci-
ating nicely. And if you’re happy making
one-shot profits, flipping houses can be
an exciting business. Over the past eight
years, I myself have bought, rehabbed,
and/or sold 422 houses. If you can pull
it off (despite the risks), you can make
a big profit in four to six months. It can
be a good business model. But it’s not
When you’re flipping houses, you’ve
got to keep working to earn your next
“paycheck”. You’ve got to keep market-
ing, buying, renovating, and selling.
This is the life of a “house flipper”;
If Single Family Homes Are Such Great
Investments, Why Do Most ‘Investors’
Still Go To Work Every Morning?
1) You’re at the mercy of contrac-
tors. Most bargain homes are in disre-
pair. You’ve got to renovate them, but
most contractors are unreliable. You’ve
got to oversee everything they do, or risk
paying for their mistakes. And the good
ones are always booked up for months in
2) You lose money for four to six
months. That’s how long it takes to fix
up a house and resell it. When your con-
tractors drag their feet, you’re left help-
less and stressed out. Every day your
house sits vacant, your bank account is
further depleted by loan payments, taxes,
insurance, and utilities.
3) Your job never ends. When you
finally sell, you’ve got to start all over
again, marketing, negotiating, and over-
seeing your contractors. If you take time
off, or can’t work for awhile,
you have no income. That’s not
4) The government takes
33%-50% of your profits!
When you hold houses for less
than a year, your profits are
taxed at the painfully high rate
of “ordinary income”. Com-
pared to my approach, you have
far less cash to roll into the next
property. The result: It could
take you twice as long to attain
If you’ve read the best-selling book
Rich Dad Poor Dad, you understand that
income-producing assets are the key to
financial freedom. You also know that
Robert Kiyosaki (the book’s author) built
his personal fortune through buying and
holding real estate.
Unfortunately, Kiyosaki doesn’t go
into detail about how he selected, man-
aged, or sold his properties. That’s why
I’m writing, “The Real Secret…Apart-
ment Buildings And How To Manage
642 Units With One Phone Call Each
Today, I own 33 multi-family apart-
ment complexes, with 7,322 units in all.
Yet, I never deal with a single tenant,
their complaints, any repairs, or vacan-
My carefully chosen property manag-
ers handle 100% of the tenant manage-
When you’re flipping houses, you’ve got to
keep working to earn your next “paycheck”.
by Dave Lindahl
Realty411Guide.com PAGE 8 • 2011 reWEALTHmag.com
ment. I have one phone call per month
with each of them; that’s it.
Last year, I sold four of my proper-
ties. After paying off my loan balances,
I received four separate checks for over
$200,000 apiece. And I used a legal
tax loophole to pay zero taxes on three
of them. I can show you how to do the
same. Why haven’t you heard more
m e n t i n v e s -
tors don’t want the
general public to
know about their
m e n t i n v e s -
tors are already
wealthy. Just look
at the late Red
Auerbach of the
Boston Celtics. He
made his real mon-
ey buying apart-
then branching off
into hotels. Like-
w i s e , A r n o l d
made his first for-
tune buying apart-
ment houses in
Here Are The Big-
gest Advantages That I See In Apart-
1) Apartment buildings are “cash
cows”, especially when compared to sin-
gle family homes. For example there is a
six unit building I own in Brockton, MA,
that nets me $1,877 per month (after all
expenses)! Think about it, more units in
each property brings you more income.
2) You start profiting instantly. Rather
than being drained for 4 to 6 months,
carrying the costs of a vacant house, you
enjoy positive cash flows from day one.
And you can live off that income, so you
don’t have to go to a job everyday!
3) Build huge equity and live off the
cash flow. If you live off the income
from bonds, CDs, or mutual funds, infla-
tion devalues your principal. But when
your buildings appreciate and your ten-
ants pay off your loans, you create huge
equities, and eventually own them free
4) Hands off management. Because
apartment houses offer so much income,
property managers charge an average of
just 4% of the gross rents (versus 10%
for single family homes).
5) Cut your taxes in half. Instead of
paying 33% - 50% in taxes, you’ll pay
the low capital gains rate (now 15%).
Seventeen years ago, I was fortunate
to have a mentor that showed me the
truth about apartment investing and he
was there to take my hand and get me
Now whether you have ever invest-
ed in real estate before or if this is just
something that you have always thought
about doing, I would love to take your
hand and share with you the exact strate-
gies and processes that have made me a
Fortunately for you, I have created
a very successful but limited mentor-
ship program. Its aim is to take you by
the hand and share with you the proven
tools you need to be successful in invest-
ing. But with everything in life there is
of course a catch. And the catch is that
I can’t work with everyone. There isn’t
enough time in the day. But my strate-
gists and I can work with a select group
There is no better time than right now
to find out if you qualify for the mentor-
To take my brief questionnaire to de-
termine if apartment investing is right for
you, and to see if you qualify to become
one of the lucky few people I will men-
tor, visit Rementor.com/Realty411, do
My mentor made me promise that
when I became successful, I would pass
on my knowledge. I hope you are one of
the few people I take under my wing to
share these powerful techniques.
See How One Mom Makes $7,487/Month
Realty411Guide.com PAGE 9 • 2011 reWEALTHmag.com
The founder of Sam’s Real
Estate Club in Beverly Hills
discusses his start in real
estate and explains why
his message of abundance
is so urgently needed into
today’s volatile market.
he Westside of Los
Angeles is hustling
with investor activity.
Within a five-mile ra-
dius there are no less
than seven real estate
clubs, serving thou-
sands of investors. But
one organization goes way beyond simply
being a club that talks about real estate. It
is more of a self-help investor organization,
which encourages individuals to take action
for a life of fulfillment.
With over 2,000 members throughout
Southern California, Sadat attracts visitors
from up to two hours away. His club also
hosts some of the nation’s most sought-after
speakers, such as Than Merrill, Scott Mey-
ers, Richard Roop and Reggie Brooks.
Sam’s Real Estate Club founder is Sam
Sadat, a spirited U.S. immigrant of Persian
descent who has lived in numerous parts of
the nation and eventually made his home
base in Santa Monica, Calif.
Sam’s passion, other than putting togeth-
er real estate transactions, is the study of
metaphysics and spirituality. It is this reap-
and-ye-shall-sow philosophy, which also
permeates at his club, that has attracted
many loyal monthly followers to converge
at the Beverly Hills Country Club.
“I try to shift people’s mindset from scar-
city and lack to that of abundance,” reveals
the daily meditator. “Most people think that
motivation comes from the outside, but that
is an illusion. The fact is, motivation comes
Sadat began his quest for real estate
knowledge shortly upon graduating from
The University of Texas at Austin, with a
degree in mechanical engineering. He re-
calls: “At the time, I was working for cor-
porate America. I took a hard look at my
bosses, who had already been working
there for 20 to 30 years, and I knew there
had to be a better way.”
In his quest for real estate, he first became
attracted to real estate finance because he
realized that “knowing the numbers,” was
vital. Part of Sadat’s real estate education
led him to start attending real estate clubs.
He fondly recalls attending investment
gatherings in different parts of the country,
article by Linda Pliagas
photography by John DeCindis
Realty411Guide.com PAGE 10 • 2011 reWEALTHmag.com
including Colorado. By the time Sadat be-
gan to live in Los Angeles, he was already
experiencing phenomenal success in real
estate finance, including traditional mort-
gage and hard money lending. He was also
buying, rehabbing and flipping properties
as a sole investor and also with partners.
It is then that he says he felt a longing
to create his own space. “I wanted to have
a forum for me. I wanted to make sure I
could inspire people.”
He carved out a space in
Van Nuys and began to
host monthly meetings in
May 2003. The number
of guests soon swelled
into hundreds of people.
Sadat prides himself in
having a club where edu-
cation, not promotion, is
His goal is to transform
each one of his members
from being a potential in-
vestor into an active one.
“My main focus has become teaching
and mentoring my students because often
you have to hold their hand and literally
push them to act upon their knowledge.”
When asked why so many people sit on
the sidelines when it comes to taking ad-
vantage of the greatest buyer’s market of
all-time, he replies with one simple word:
“Fear.” He adds: “That is really the funda-
mental reason why people don’t act, it’s be-
cause of fear. The fear of the unknown and
fear of failure are really two of the most
incredible fears that we have.”
While Sadat is thankful for the success
he has found in real estate, it hasn’t al-
ways been smooth sailing. “I lost millions
because of the Northridge earthquake in
1994,” he confides. (Most Californians do
not carry earthquake coverage due to its
lack of affordability.) Another tough lesson
he learned was that no matter what type of
transaction a real estate investor does, they
need to hire an independent escrow com-
pany to make sure the contract is followed
accordingly. Sadat learned the importance
of this when he purchased three homes in a
“Most people think that motivation comes
from the outside, but that is an illusion.
The fact is, motivation comes from within.”
creative transaction, later he found out the
seller was attempting to sell the same prop-
“It was a learning experience for me and
for others of what not to do, not having
gone though a traditional escrow caused
me a lot of aggravation and money because
I ended up having to take legal action.”
During emotionally and finan-
cially devastating times, Sadat turns in-
ward for strength and relies
on words of wisdom from
the individuals he admires
most: Carl Yung, Wayne
Dyer, Ralph Waldo Em-
erson and Rumi, a Persian
Successful attributes in
life, like in real estate, need
to be developed. “I’ve heard
my shares of ‘no’. I’ve had
to work on myself. It’s a life
For Sadat that calling
is not merely a personal,
internal goal, as much as it is an evolving
and fully dimensional manifestation. It is
an avocation that he says he hopes will el-
evate all those he reaches.
Be sure to visit Sam’s Real Estate Club on-
line for a schedule of speakers:
The Scoop on Sam’s Real Estate Club
Join Sam Sadat the 4th Wednesday of every
month at the beautiful Beverly Hills Country
Club. Meetings start at 7:30 p.m. and usually
last about 2 1/2 hours. Reserve your seat online
for $10 per person, which includes valet parking.
Please register for the club meeting online at:
Realty411Guide.com PAGE 11 • 2011 reWEALTHmag.com
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What is private lending?
A private lender is somebody (who is
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Private lenders borrow money at a
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Over the past five years, Mr.
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Gary’s strong domain expertise in
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Invest with the Best
The Market Leader is MemphisInvest.com
Realty411Guide.com PAGE 15 • 2011 reWEALTHmag.com
“If you commit to getting better every day,
your customers will demand you get bigger.”
— S. Truett Cathy, founder of Chick-Fil-A.
Continued on pg. 17
his sage advice, as well
as nuggets of gold from
other customer focused gu-
rus, has been adopted into
company goals and aspira-
tions; namely to be the absolute best turn-
key investment company possible.
Many investors try their hand at out-of-
state investing only to become frustrated
with the less than stellar returns they expe-
rience when dealing with companies who
claim to be “turn-key” investment compa-
nies that simply provide contacts, leaving
customer service out of the equation.
Chris Clothier of MemphisInvest.com
offers his advice for individuals who are
interested in finding a true turn-key com-
pany for their out of state investments. “If
you plan to invest out of state, you need
to find the right company to partner with
— someone that has experience, that has
knowledge not only of the industry but of
the market, and someone that is a true turn-
While there are many companies who
call themselves “turn-key” (so much so that
he feels it has become an overused phrase),
Chris believes that investors searching for
a turn-key company to partner with should
look for organizations who “own and op-
erate every step of the equation.” This
way, investors are not getting a company
that says: “buy from me and I will give
you contacts for renovation, or contacts
for property management or contacts for
insurance.” Chris says this is a recipe for
disaster and it is a lot of hands-on work for
an out of state investor.
Chris continues, “You are looking for
someone with all the business acumen to
put together all the steps that make sense.”
The Clothier family established Mem-
phisInvest.com and her sister companies,
Memphis Invest Renovation Services and
Premier Property Management on the firm
belief that out of state investors need ac-
cess to proven, qualified professionals who
understand their needs. MemphisInvest.
com partners with investors by handling all
of the details — from purchasing invest-
ment properties to ongoing maintenance
and property management, helping to al-
leviate the stress that often accompanies
buying properties far from home.
MemphisInvest.com makes investing
Photograph from left to right: Chris Clothier, Brett Clothier, Kent Clothier Jr. and Kent Clothier Sr.
Continued on pg. 31Continued on next page
simple for out-of-state investors. “You
make one phone call,” states Chris, “and
you’ve got every department, any answer
— access to every single person in this
company, so [the process is] very stream-
Chris believes that successful investors
possess some common traits — “they have
to be inquisitive, they have to have curios-
ity. They shouldn’t ever take everything at
face value. They should be inquisitive as to
who they’re dealing with, and what mar-
kets that they’re looking to buy in. They
should be willing and able to do some
homework, look around, and ask the right
questions. They should also have a long-
term mentality. This is not get rich quick
by any means. The other thing that inves-
tors need to be successful in long-term buy
and hold is they need access to capital. No
money down is not an avenue to success.
You have to have access to some capital
and be able to build a long-term portfolio
whether you use straight cash or some kind
MemphisInvest.com, possessing a strong
customer service focus and attitude, makes
sure that an investor knows, from the start,
if this opportunity is right for them. “I
don’t want to waste an investor’s time or
raise their hopes,” says Chris. “We are very
up front and very frank when we have our
discussions. We need to know the financial
strength and ability of an investor so we
can help make sure they’re successful.”
Investors who partner with their compa-
ny will realize that “they have found a great
opportunity in Memphis, they’ve identified
one of the premier turn-key investment
companies in Memphis, and they’ve com-
municated real clearly exactly what they
want — from there they just let us do it,
and then they buy the opportunities that we
bring to them,” says Chris.
He continues: “This is about buying cash
flow investment property, if an investor tells
us that they need to earn a certain amount
of cash flow to pay their bills each month,
we are very adamant that they need to look
at other financial opportunities, other finan-
cial advice before buying real estate.”
For the Clothiers, “There is no sale
worth making that’s gonna hurt somebody,
just for us to make a little bit of money,”
Why would an investor choose to partner
Top photo: Customer Service Team at MemphisInvest.com Carol Henderson, Cyndy
McCrary, Ashley Claunch; Bottom photo: Brett Clothier gets ready to speak to a room
full of real estate investors at a buyer tour in Memphis, Tenn.
Top: An out of state real estate investor celebrates purchasing two investment properties.
Realty411Guide.com PAGE 17 • 2011 reWEALTHmag.com
MemphisInvest.com invites readers to join
them at their events in the following cities:
•September 8th-11th - New Orleans
•October 1st - Boston
•October 18th - Phoenix
•October 29th - NY
•November 12th - Vancouver
•December 1st - San Jose
•December 3rd - San Diego
Here is one sample property, this home is already
sold, but other great rentals are still available.
Be sure to add one to your portfolio.
3 Bed/2 Bath with 2 car garage
Built in 2000 - Sq. Footage - 1,601
Purchased for $69,000
OR $37.41 PER SQUARE FOOT
$10,000 in full renovation work completed
Tax assessed value in 2010 of $104,000
Gross yearly rents between:
$9,900 and $10,740
Assuming 30% of rents for yearly expenses and
the property has a cash-on-cash ROI
of approximately 10%
“As a company, we hold in very high
regard the customer service that we pro-
vide,” says Chris, “we have three dedicated
employees that provide customer service,
including calling every one of our clients
every month on behalf of our property
management company and on behalf of the
Clothiers, as the owners — and they ask
the simple question: “What can we do for
Chris shares the reason for MemphisIn-
vest.com’s amazing growth. “About a year
ago we started to take time every single
week to stop everything, and come togeth-
er and study how to get better at customer
service, and at business as a whole.”
The investment in
customer service has
paid off — in spades.
In the first half of
com became the larg-
est private home seller
in west Tennessee. The
only companies who
sell more homes than
Memphis Invest are
Fannie Mae and the De-
partment of Housing and Urban Development.
“To date,” said Chris, “we closed 163 transactions so far in 2011.
Last year at this time, we had closed 79 transactions.”
The integrity and distinction that MemphisInvest.com brings to
the turn-key investment industry is seen clearly by their actions:
MemphisInvest.com doesn’t recommend properties that they
wouldn’t buy themselves. In fact, their investors buy and own in
the same neighborhoods that the Clothier family buys and owns
Traveling to many areas, such as New York, Chicago, Boston,
and all major California cities, MemphisInvest.com takes time to
visit their clients face to face. Why? “We’re willing to do whatever
it takes to provide the best service possible and to show our clients
that we’re there for them,” Chris replies.
— Interview by Anita Cooper
Realty411Guide.com PAGE 18 • 2011 reWEALTHmag.com
Top photo: Premier Property Management of Memphis is the
key to their investors’success! Left photo: Mark Anderson, a
portfolio advisor at MemphisInvest.com meets with a couple
from California who purchased three rental properties.
Kent Clothier Chooses to
Follow the Road Less Traveled
Realty411Guide.com PAGE 19 • 2011 reWEALTHmag.com
ne conversation with Kent
Clothier will open your eyes to
a fatal flaw found in many real
estate programs: Most of the
gurus who pitch the products don’t actu-
ally utilize them. Well, here is some inside
scoop: Kent Clothier (and his entire fam-
ily and team) actually use the systems Kent
promotes. As owner of 1-800-SELLNow,
the systems Find Cash Buyers Now and
Find Private Lenders Now, and as co-owner
of MemphisInvest.com, Kent Clothier uses
the same knowledge that he shares with his
clients, many have already seen great suc-
cess in their own right.
“The industry is filled with people
who want to tell you how to do it,” notes
Kent, “but they’re not doing it themselves.
There’s a lot of people who want you to buy
this program, or buy that program, [but]
the actuality is, very few of them are doing
deals. Not only do we educate people, but
we’re also buying and selling three to four
hundred houses per year.”
Kent got his start in real estate after a
successful career in the wholesaling busi-
ness with a multi-billion dollar company in
the grocery industry. After leaving the gro-
cery business, he was, like many individu-
als, “sucked into” the real estate industry
by those infamous late nite infomercials,
however unlike so many who try their hand
at real estate investing and fail, he put ev-
erything into his businesses and has grown
three successful ventures in addition to
working with his family’s business, Mem-
phisInvest.com, a truly wholesale invest-
A focus on creating a relationship with
their clients and meeting their needs, as
well as always doing what’s
necessary, even the “dirty
work” that nobody else
wants to do, has been the
key to Kent’s success.
“If you’re willing to do
what others are not, then you
will find that success will
usually follow,” said Kent.
Kent believes that his suc-
cess, and that of his family,
the Clothiers, “...lies in the
fact that we’re willing to do
something that others aren’t.
We are always willing to
send someone down to the
county clerk’s office to sift
through property records to find cash buy-
ers, people that are in our back yard, that we
get to know, and by doing that we’ve built a
very successful business, not a hobby.”
When Kent and his family shared the
methods they utilized in growing their
business with others in the real estate in-
vestment industry, they were surprised at
the reactions they encountered. Individuals
were amazed that the Clothiers could find
cash buyers, and build a brand for their in-
Kent’s businesses were “born out of our
own investing interest. We realized that
what we were doing was so unique, that we
needed to share it with other people.”
Investors who purchase their systems are
provided with access to a wealth of infor-
mation on real estate investing, including
webinars, access to online cash buyers,
continuous customer support and access to
private lenders; virtually everything a seri-
ous individual needs to grow their invest-
More than just great customer service
and access to fantastic products, investors
learn how to “run their business like a busi-
“In our real estate education classes, we
only spend 20 percent of our time teaching
people on real estate, and we spend prob-
ably 80 percent of our time educating them
on how to be an entrepreneur, or how to
actually get in the game the right way,”
Rather than wait for the elusive (read:
“non existent”) “perfect” time to invest,
Kent advises his clients to realize that
“there will never be a better time, [your]
inaction is costing [you] the opportunity of
“There’s never going to be another op-
portunity like this,” said Kent, “and yes, it’s
supposed to be scary, it’s supposed to be a
little unnerving, but it’s also what makes
it exhilarating, it also makes it very excit-
ing, it also makes it so rewarding when you
finally get there, when you finally achieve
the level of success you desire. ”
“If you’re willing to do what
others are not, then you will find
that success will usually follow...”
by Anita Cooper
a transaction — you’re flipping real estate
without the risk.
Black Belt Investors is unlike many oth-
er real estate consulting, educa-
tion and investment firms.
“I truly believe that if you
want to become a real es-
tate entrepreneur and cre-
ate your real estate cash
machine,” shared Sensei,
“you need proper training
by an experienced instruc-
tor that practices what
he teaches. You
tor to take
niques in the
trenches to help
and put you on
the fast track
to getting paid. There’s a lot of real estate
trainers and gurus out there that just pro-
mote fluff and stuff. They glamorize real
estate to be extremely easy and profitable
all the time, and yes, real estate can be ex-
tremely profitable, but the reality is, you’re
going to have to do some work. Deals are
not going to fall in your lap, deals are cre-
ated. Just know that you will have some
deals that are extremely easy that will put
cash in your pocket quickly and with oth-
ers you’re going to run into obstacles - it’s
up to you as an investor to learn how to
Mastering the Art of the Flip
by Anita Cooper
Mastering the art of wealth creation takes
time, it takes dedication, and most impor-
tantly, it takes direction - guidance from
a wise investor who has himself mastered
his own destiny through smart investment
Sensei Gilliland, founder and presi-
dent of Black Belt Investors, has trained
hundreds of investors to grow their
wealth through his “action oriented and
results focused” training programs. Uti-
lizing discipline gained through years of
martial arts training, Sensei has created
a program designed for all levels
of investors who need guid-
ance and direction and
who desire to create a
real estate business
that is cash flowing
tens of thousands
of dollars every
enced, or “black
belt” investor, was
once a “white belt”
(beginner). He did not
attain to his advanced posi-
tion overnight; his knowl-
edge increased as he put
his training into practice. He also did not
train on his own, rather he had a teacher
that led the way.
It’s vital that you find a successful men-
tor, someone who is interested in helping
you achieve your business goals. If you’re
looking for immediate cash, wholesaling
is the best place to begin. Black Belt In-
vestors will train and coach you on how
to control properties and create immediate
cash without the use of cash, without the
use of credit, and without the use of loans.
Basically, you become the middle man of
get past that obstacle, whether you have to
go around it, over it, through it or under
it. If you can learn that from your coach,
you will find yourself in a profitable posi-
tion. I know with a few of my realty-based
techniques, you will be able to pass any
obstacle and get paid.”
“One thing about Black Belt Investors,”
shared Sensei, “is that one of our primary
goals is keeping our investors engaged all
the time. We’re not a fly by night company
that trains students for 3 days and leaves
them to do the work on their own. We’re a
company that reaches out to help the stu-
dent to get to the next level. We accom-
plish this through my coaching program
which is directly with me and not through
a call-in center that answers questions
from a script. We also keep investors en-
gaged through multiple free webinars,
workshops, on-site mentoring and my
free monthly real estate club meetings in
Southern California, which keeps me ac-
countable as I must show my face there
every single month. If I was over promis-
ing and under delivering, then I would be
exposed at that club meeting. Our inves-
tors keep coming back because they’re en-
gaged, and when they’re engaged they be-
come more successful. The only way not
to be successful after one of my trainings
is if you were to unplug yourself.”
You will learn by doing. “If I were to
train you to wholesale properties, we
would develop a battle plan, grab your
hand to lead you onto the field, and start
doing the business. There is nothing bet-
ter than hands-on training,” shared Sen-
sei. “Think about it, if you were to learn
how to kickbox, and I had a kickboxer that
Deals are not going to fall in
your lap, deals are created.
Continued on pg. 56
Realty411Guide.com PAGE 20 • 2011 reWEALTHmag.com
Black Belt Investors’ Remote Rehabs program is a truly unique and phenomenal way
to build cash quickly. Believe that Remote Rehabs is without rival in any shape and form.
Black Belt Investors stake their reputation on the fact. By getting involved today, you will
be receiving a proﬁtable and automated hands-off rehab business with its time tested meth-
ods, as well as Black Belt Investors’15 years of experience. Trust me... This is one chance
you cannot afford to pass up; Take Action Now!
A Way to Effortlessly Flip or Rent
Cash Generating Properties in the
Hottest Markets Across the Nation
We call it Remote Rehabs! Almost everything has been done for you, we have:
• Strategically Targeted Markets to Buy cheap, Fix Easily and Sell Quickly
• Generated a Revolving Inventory of Deeply Discounted Properties starting at $20K
• Taken Away the Headaches of Deal Searching, Pencil Pushing, Rehabbing and Sales
• A Success Manager to Keep you Abreast and Coach You Throughout Your Deal
• Basically Put Time Back on Your Side to Rehab Houses without Lifting a Hammer
• “Gain Complete Control Over Your Life and Spend Less Time on Doing Things You Hate Doing By Using
Remote Rehabs, a 100% Hands-Oﬀ Fix and Flip System.”
“Wow! Just wow! I don’t even know where to start with all the things that Remote Rehabs has done for me. Know that list of beneﬁts that
Black Belt Investors offers? Well they are all completely, one hundred and ﬁfty percent true! All I know is that Remote Rehabs is the simplest
and most proﬁtable program I have ever experienced.”
- Pek Lee Choo - Chicago, IL
“Here is what I did: I enrolled in Sensei’s program Remote Rehabs, he found me a deal and his team did all the work A-Z. Soon after the
rehab and listing the property, I was amazed to receive offers on my investment! At ﬁrst I put it off to blind luck, but within 45 days I receive
a check for over $17,000 in net proﬁts and I’ve been smiling since.”
- Lynn McCloskey - Concord, CA
Purchase Price: $43,000
Repairs & Misc.: $32,000
List Price: $110,000
Sold Price: $110,000
Net Proﬁt: $25,100
Cash-on-Cash Return: 33%
Purchase Price: $36,500
Repairs & Misc.: $22,700
List Price: $99,900
Sold Price: $95,000
Net Proﬁt: $27,250
Cash-on-Cash Return: 38%
Purchase Price: $45,300
Repairs & Misc.: $4,200
Fair Market Value: $71,000
Equity Position: $21,500
Cash Flow: $725 mo / 8,700 yr.
Capitalization Rate: 18%
Sold in 27 Days!
Equity & Cash Flow
Sold in 51 Days!
started working in real estate with
my friend, Walter. We both started
out rehabbing houses, but there were
two big differences between us. First,
I was a lot younger; I was 32, Walter was
58. Second, I grew my net worth and cre-
ated a hands-free passive income. Walter,
by contrast, got hooked on buying and
He was afraid of tenants, so he rarely
rented houses. When he did, it was always
on a “rent to own” basis. (He offered the
tenant a lease option). After all, single
family homes don’t generate much posi-
tive cash flow.
Walter didn’t mind giving up his fu-
ture appreciation. After all, he always got
$5,000 plus upfront in “option consider-
ation” and he always sold his houses and
made a profit. Over a three year period, he
grossed an average of $109,000 per year.
Sounds pretty good, doesn’t it?
Unfortunately, the IRS calls him a “deal-
er”. That’s because he rarely holds a house
for more than a year. So his profits are
taxed at the painfully high rate of “ordinary
income”. For example, if he sold a house
for a $29,000 profit, that’ll cost him about
$10,000 in taxes.
After overhead costs and taxes, Walter’s
“take home pay” is only about $60,000 per
year. And every dime pays for his living
expenses. The result: at the age of 65, his
net worth is only about $33,000. And that’s
not the worst part... if he stops buying and
selling, he’ll have no income to live on!
That’s because he has no income-produc-
ing assets. No positive cash flow. No an-
nuity. And no equity. Now he looks back
at all of those years and realizes he made
a big mistake.
Most of the homes he bought in the mid-
90’s have doubled in value, but he sold
them all before they had a chance to appre-
ciate. He gave away hundreds of thousands
of dollars in appreciation. (And the IRS
took a third of his profits). He never bought
How could a real estate “investor”
flip houses for eight years, only to
wind up with no assets, no cash
flow, and no income? by Dave Lindahl
Dave’s RE Tips WealthWealth
Vol. 1 • No. 3 • 2011
Turn a Real Estate Hobby
into a Proﬁtable Business8 18 Zero Down Investments
Learn Our Secret Recipe10 Be a Private Lender,
Learn to make BANK!
Serving the Needs of Accredited Investors - INSIDE: Information to Grow and Maintain Your Wealth
Continued on pg. 62
Realty411Guide.com PAGE 22 • 2011 reWEALTHmag.com
We are proud to oﬀer a proven cash ﬂow investment with substantial instant equity. The investor receives
the best of both worlds a true turnkey investment backed and managed by a team of life long real estate
The Genesis of True Wholesale Houses, LLC is taken from a deep understanding of cash ﬂow real estate
investing properties and what it takes for the passive investor to succeed. The investor that chooses to
invest with True Wholesale Houses, LLC will enjoy a predictable monthly cash ﬂow and instant equity.
True Wholesale Houses, LLC takes the work and worry out
of owning a rental property, while maintaining a proven cash
ﬂow to the investor.
No more worrying about:
1. Collecting Rents.
2. Maintenance Emergencies.
3. Finding a Tenant.
4. No more worrying about managing property and
managing your managers.
5. Property Taxes.
6. Finding the right home in the right neighborhood.
True Wholesale Houses, LLC is your Equity Partner for the
life-time of the transaction. Our partners on the ground
have a stake in the home, the tenants, and preventing main-
tenance problems by doing a quality re-habilitation on the
property before we place a tenant.
True Wholesale Houses, LLC pays monthly cash on cash 9%
return for the term of the note. If the home has a vacancy,
we still pay you every month.
As your partner, True Wholesale Houses, LLC will manage
the property and sell it when the market recovers. If you
wish to keep the cash ﬂow and the 9%, you as the investor
can dictate an extension on the note, holding the home in
the caring hands of True Wholesale Houses, LLC.
True Wholesale Houses, LLC is here to work with you to give
you the best value for your money. We are your true whole-
sale partners so we can all prosper together.
True Wholesale Houses, LLC
Atlanta, GA - $19,500 Equity DAY 1
Net Investor Cash Flow $340/Mo • Note Price $51,000
HERE ARE SOME OF OUR NEW ADDITIONS TO
Jackson, MS - $17,500 Equity DAY 1
Net Investor Cash Flow $262/Mo • Note Price $35,000
Atlanta, GA - $20,000 Equity DAY 1
Net Investor Cash Flow $309/Mo • Note Price $53,000
OUR SELECTIVE INVENTORY
“Equity Day 1, True Cash Flow, Peace of Mind”
True Wholesale Houses, LLC brings
investors Wholesale to Wholesale deals
as opposed to Wholesale to Retail
888 285 1900
For information, contact:
True Wholesale Houses
Offers Investors Security & Returns by Anita Cooper
Realty411Guide.com PAGE 24 • 2011 reWEALTHmag.com
True Wholesale Houses,
acquires a foreclosed or
Portland Funding LLC,
makes a loan at True
Creating Instant Equity
True Wholesale Houses
does a complete Reha-
bilitation of the property,
creating a problem and
Houses tenants the
instant cash flow
The investor buys the note
from Portland Funding,
gaining First Deed of Trust
on the property, and a
50% equity position.
checks are sent
to the investor
3 - 5 years later, TWH
sells the property and
investor gets 50% of the
equity built, on top of the
monthly returns from the
cash flow generated by
ruly unique, truly
amazing, truly one
of a kind. True
is different from ev-
ery other investment
company you’ve come across.
Jay Hinrichs, managing owner of
True Wholesale Houses is uniquely
qualified to provide investors with
top-notch investment opportuni-
ties that promise consistent returns.
Hinrichs is both a licensed mortgage
banker in the state of Oregon, and a
licensed real estate broker in Cali-
fornia, Oregon and Mississippi.
Hinrichs shared his reasoning be-
hind True Wholesale Houses’ cre-
ation; “As a lender, back in 2008
and 2009, like every other lender at
the time, we had foreclosure prob-
lems, I looked at the model and
said, ‘There’s gotta be a better way
to protect the investors than just let-
ting them go off on their own.’”
Concerned about this trend, Hin-
richs devised the current model that
True Wholesale Houses follows:
They provide professional invest-
ment and property management
experience that guarantees both
the company and the investor yield
substantial profits from their col-
“We’ve combined my years of
lending knowledge and my years of
buying and owning rental proper-
ties, and combined that knowledge
into a hybrid model that gives the
conservative investor, who’s look-
ing for the utmost in protection
and equity preservation, another
Hinrichs shares one key differ-
ence between his company and
most other investment companies:
“At the end of the day, none of
these investment companies have
an ownership interest in the prop-
erty going forward, they’ve taken
their profit up front. Our profit is
deferred until the property sells.
And like the triple net lease, we of-
fer the same thing — investors get
their payment monthly, regardless
of whether it’s rented or not.
With this program, investors
never have a cash call and they
don’t have to worry about any of
the maintenance. True Wholesale
Houses deals with all the manage-
ment headaches associated with
owning and managing an asset.
Unlike other investment com-
panies, Hinrichs says that at True
Wholesale Houses, both the prop-
erty manager and the rehabber are
owners of the property. “Our guys
on the ground are vested in the
properties. They have an ownership
interest, and they too are working
for the equity bonus when we sell
these properties. Our ownership
interest in the properties, assures
investors that the assets are being
managed to their highest potential
for profit,” Hinrichs maintains.
His forecast of the market is ex-
plained: “We believe we’re in the
middle of a ten year cycle, and that
in three to five years we’re going
to be coming out of that cycle and
once we see a chance to sell our
properties at a substantially higher
amount than what the note values
are, that’s when we’ll start to roll
out of the properties, because that
is where our big profit is lying.”
There is a steep learning curve
for individuals who are exploring
investing in real estate. According
to Hinrichs, what True Wholesale
Houses does is “mitigate the learn-
ing curve, give a real return based
on years of experience owning and
renting rental properties, giving the
utmost consideration to principal
preservation. We’re not going to
lose money. You’re investing with
people who do this for a living. We
Rock-Bottom Prices, Secure
Returns & Built-In Exit Strategy
stay in these transactions for the
long haul and for the life of the
transaction. I have put this mod-
el together so that everyone is a
stake holder and has skin in the
game. As long as we buy in the
area we want to be in, rehab to
our standards, not just to rental
standards, treat our tenants like
the gold that they are, the rest
falls into place. Our cash flow
is great, and our investors get
taken care of.”
The reward is a real estate in-
vestment with a steady, unwav-
ering return, which may sound
like an oxymoron. When asked
how this is possible, Hinrichs
replies: “We assure investors of
a consistent monthly cash flow,
regardless of whether the prop-
erty is rented or not. We achieve
this by using a conservative
vacancy and maintenance re-
serve allocation that assure that
the property is maintained in
a peak performance standard
throughout the life of the trans-
According to Hinrichs, when
one invests with their model,
they can expect a nine percent
cash on cash return with no
downside, for the life of the in-
vestment. Then, when it is sold,
(they believe that time frame to
be within three to five years),
there’ll be another 30 to 50
percent equity payday for the
Compared to houses offered
by other investment com-
panies, Hinrichs says these
properties are truly “whole-
sale.” For example, in Jackson
Mississippi, they were able to
offer a home to an investor at
approximately $30,000 less
than a similar home offered by
another investment company.
In other business models,
the retailer takes the equity up
front, and the investor is bank-
ing on property values going
up. “If the investor comes in
with us, they already have equi-
ty because we’re putting them
into the asset for literally up to
40% less than anybody else is
going to sell it to them for,” he
In addition to Hinrichs’ ex-
tensive experience in mort-
gage banking and real estate,
he shares advantages that his
company has over its competi-
tors. His partner, Mike Hanks,
is a successful home builder in
Oregon. He has built over 500
homes. Hanks also has an IT
background and has set up prop-
erty administration systems for
Guardian Management, which
had 11,000 units, so they have
the tools to manage hundreds
and hundreds of houses.
“Our partners on the ground
are people that we’ve known
for years. They are highly ex-
perienced and very excited to
be part of the team and have an
ownership interest in the house,
other than just managing the
house for somebody else and
not owning any of it.”
Investors will be provided, upon
request, with banking references
to validate True Wholesale
We Help You Get The Most Out Of
Carolina Liquidators helps
investors like yourself ﬁnd the best
deals on properties in your area.
Along with providing a resource to
help you ﬁnd investment property
we also pride ourselves in having
the ability to educate you on making
sound investments and helping your
make the most out of your business.
Carolina Liquidator and it’s afﬁliates are primarily Real Estate Wholesalers.
With over 40 years combined experience in the Real Estate and Mortgage in-
dustry we are able to help you achive your Real Estate Goals that may have not
otherwise have been possible.
We have a full staff of people hunting, researching, marketing, inspecting and
negotiating these deals. Companies like us can supply you with deal after deal;
why not let us do the work for you? We have the time and resources to ﬁnd these
deals that most likely will not be available to you.
We can provide everything an investor would need to make
a sound decision. We have you covered every step of the
way from planning, based on your ﬁnancial goals, to
property acquisition and property rehabilitation.
We have been doing Real Estate Investing for the last 18 years and mortgage
for the last 15 years. We have the experience and know how to get deals done.
Whether your looking for a home to make a quick return on, or homes that
produce a constant cash ﬂow. We will ﬁnd you what you are looking for!
Carolina Liquidator made the buying process so easy. I would deﬁnitely recommend
their services to anyone who is looking at investing in a home...
1825 Remount Rd. Charlotte. 3 bed 2 bath home
for $55,500.00 • Tax Value $101,900.00
$593.00 Net cash Flow
Pricing Property Location Features
$55,500.00 1825 remount Rd Bedrooms: 3
Charlotte, NC 28208 Bathrooms: 2
This home is located near downtown Charlotte NC. It is a newer
3 bed 2 bath home and will rent for $850.00 a month. With
the sales price being half of the current tax value it’s a steal at
$55,500.00 and netting $593.00 a month cash ﬂow. It is near
schools, employment and shopping and less than 5 minutes to
down town Charlotte. Don’t let this one slip away.
Rent: $850.00 Total Expenses: $257.00
Approximate taxes: $122.00 Net Cash Flow: $593.00
Insurance: $50.00 Cash on Cash Return: 14%
Property Management: $85.00
Market Spotlight: South East Region
ting money into your retirement. They are
as much a part of the team as anyone else
involved. It is kind of shocking to some
of the investors when they come out to
visit our office because we have so much
community support, we have churches and
community leaders that work with us to
help keep the areas clean and safe.
Q: Why should investors buy rentals in
A: Investors should buy rentals in our area
because we have good, hard working peo-
ple living in our homes. People who rent
our homes are mostly blue collar workers
who make a living by working anywhere
from retail stores to our local industrial
For a very small investment, you can
turn a very good income. Literally for what
you could buy a car for, you can buy real
estate in our markets with a net cash flow
of more than $400 a month. Just about ev-
ery home we have is under $50,000, with
the majority being in the $30,000 range.
Q: What makes your company unique?
A: We don’t just sell real estate to people,
we create portfolios, we are currently in
these areas: Charlotte, NC; Rock Hill, SC;
Atlanta, GA; Kansas City, Mo; and Jack-
son, Miss. We are also expanding into the
Question: What kind of opportunities
are you seeing in your market?
Answer: We currently have a 67 house
package that we are working on. It is not
only a great opportunity for us but for in-
vestors who are interested in this package.
About half of the homes are currently rent-
ed and we should be able to place tenants
in the other homes very easily.
This is a once in a life time deal for our
company, to buy so many of these homes,
rehab them, and get tenants in them. It is a
big challenge for our company, but we have
a great team, and we are up for the chal-
lenge. This is just one of the projects that
we have currently going, we have many
smaller deals also, many in the $30,000
Q: How is your market handling the eco-
A: Being based in the Charlotte, NC area,
we haven’t felt the effects quiet as heav-
ily as other cities, but we have noticed an
increase in the number of tenants interested
in our rent to own program. More people in
the area are looking to rent but still have a
desire to own their own home. With a rent-
to-own program, we are able to place good
tenants in these homes who will pay each
month because they want to own the home.
This is real simple, the property values are
down and the rents are staying the same or
even going higher than previous years on
some occasions. Just to give you an idea,
we have several homes available in the mid
$30,000s that are net cash flowing over
$400 a month with cash purchases.
Q: What is the best part of being an in-
vestor in your city?
A: We handle everything for the investor;
it is a total turnkey process for the passive
investor. We take care of our tenants just
as well as we take care of our investors.
After all, these are the people who are put-
Florida market. What we do is figure out
what you are looking for and what your
goals are and we put scenarios together that
will help you achieve those goals. We have
a great team that works daily on achiev-
ing the goals of our investors. Our team
includes our research specialist, Emily
Harris; property manager/office manager,
Cherry Stegall; and general contractor,
Bennett James. These three work to keep
the daily operations of our office moving
so that we can continue to find deals for our
Q: How long have you personally been
investing in real estate?
A: Alex Franks started real estate invest-
ing in 1999 as a way to generate passive
income and long-term wealth. Wholesaling
deals is something he continues to actively
pursue today. By 2006, he made the leap
from wholesaler to a full- time real estate
Kevin Burrell has 18 years experience in
Real estate and 15 years in the mortgage
lending business, after he bought his first
house in 1994, Kevin was hooked on real
In 2008, Alex and Kevin joined forces to
create Carolina Liquidator, LLC. They both
specialize in being able to quickly analyze
Rock Hill, S.C.
Kansas City, Mo.
Kevin & Alex
ph: (803) 325-1925
Continued on pg. 31
Realty411Guide.com PAGE 27 • 2011 reWEALTHmag.com
Alex Franks and Kevin Burrell
roperty tours offer out of area
investors the perfect opportu-
nity to learn about markets and
the cash flow deals they offer.
Investors who are interested in
investing in Phoenix
won’t want to miss
out on REO Bailout’s
first three-day proper-
ty tour, scheduled for
October 8th, 9th and
10th (see below for
The tour is being
produced by REO
Bailout, a premiere
real estate investing
company based in
Owned by Mike
Barker, a 20-year law enforcement profes-
sional who currently serves as a SWAT of-
ficer, Barker is a prime example of how in-
vestors can combine full-time demanding
careers with the flexibility and high profits
that part-time real estate investing offers.
REO Bailout has been acquiring, rehab-
bing and selling properties to wholesalers,
flippers and buy-and-hold investors for
many years. Their expertise began in their
own backyard of California and soon ex-
panded into other markets.
“During the last two years we have
done extensive studies on the hardest hit
markets in the U.S. We have actually put
people on the ground in these markets to
get a first-hand look at the growth and de-
velopment these areas offered.
Currently, Phoenix is the destination of
“Arizona, and the greater Phoenix area,
have shown greater growth potential and
the commitment to improve infrastructure.
Many Fortune 500 companies have made
Phoenix their home, capitalizing on the
low cost of housing and low tax base. It
is because of this commitment and their
actions to improve this city that we feel
Phoenix is the best fit for us at this time.”
Investors can have a variety of cash-flow
deals to choose from, Barker explains,
“from condos, single family residences,
Americans Flip to Australians
AZ Property Tour Explains How
Continued on pg. 57
Realty411Guide.com PAGE 29 • 2011 reWEALTHmag.com
id you know creat-
ing monthly residual
income in the stock
market is just a click
away? Now is a great time to be
a stock market investor and trader.
In the last fifty-two weeks, shares of com-
panies like Netflix (ticker NFLX) have risen
from $95 per share to over $300 per share.
Similarly, shares of athletic yoga apparel
maker LULU Lemon (ticker LULU) have
gone from a fifty-two week low of $15 to
$64. That’s a 400% percent increase.
This year has seen explosive growth in
stock prices and there’s more to come. Is it
a big surprise to the experienced trader and
investor? The answer is no. Here’s why: we
are in the middle of a technological revo-
lution. The use of hand held devices and
the mobile applications that accompany
them are exploding worldwide. As a stock
market investor, you can cash in on almost
every trend you see around you. All of this
innovation is financed, in part, by investors
like you and me.
Here’s how the game works. We pur-
chase shares of companies that are publicly
traded. The capital raised from “going pub-
lic” finances R&D, marketing and advertis-
ing. In essence, we help finance the boom.
Our reward is evident when we purchase
shares of let’s say XYZ stock at $50 and
one year later those same shares trade for
$120. That’s over a 100% increase in our
How do you choose winning stocks?
Here’s the big secret: on Wall Street, it’s
all about revenue. When a publicly traded
company’s quarterly and annual revenues
rise, ninety percent of the time so does the
stock price. Your job is to learn how to read
an income statement and choose winning
stocks. To do that you’ll need a financial
The Winning Combination
The most successful investors know the
road to millions is paved when you have a
balanced portfolio of stocks and real estate.
If we look at the two richest people in
America, Bill Gates and Warren Buffet,
they made their billions from owning shares
in publicly traded companies. Some com-
panies they started themselves and others
Mr. Gates and Mr. Buffet both follow a
simple formula. Make your money on Wall
Street and invest the profits in real estate.
Why stocks? Stocks are easy to buy and
sell. As a stock market investor, you have
the advantage of being able to trade from
anywhere in the world as long as you have
internet access. Next, when you buy and
sell stocks there are no credit checks, clos-
ing costs, title searches or PMI (Protective
Mortgage Insurance). It’s possible for you
to purchase shares of a company at $50 and
sell them a week later for $55. That’s a ten
Trading stocks can be a fast or slow
transaction. Either way, it’s a simple buy
low and sell high scenario. In a case like
APPLE (ticker AAPL) it’s buy high and
sell even higher. Apple has a record four-
teen straight quarters of top line revenue
growth. If you purchase shares now, the
potential for future growth is still present.
A $10,000 investment in Apple stock five
years ago would be worth $70,000 today.
Some stocks allow you to produce monthly
residual income by selling covered call op-
tions. What are
covered call op-
tions you ask? It
works like this:
Let’s say you
shares of XYZ
stock at $9.75.
Instead of selling
XZY stock at a
higher price after
the shares, you
sell the rights to
your stock first to create guaranteed in-
come. Selling a call option means that you
would be selling the right, not the obliga-
tion, to someone in the market place to buy
that stock away from you at the $10 price at
a later date. The buyer of the option would
then pay you something called a premium.
In this example the premium is $.90 per
share. The price that you’ve agreed to sell
the stock at is called the strike price. In this
case it’s $10.
So in the above example you sold a call
option and earned a $.90 per share pre-
mium. Simultaneously, you agreed to sell
the stock at the $10 Strike Price. No mat-
ter what happens in this transaction, if the
buyer decides to buy the stock from you or
let the option expire, you get to keep the
The buyer of the option could choose to
exercise that option at any time before the
expiration date and pay you the full $10.
If the buyer decides to exercise the option,
you would be obligated to sell the stock to
him or her at the $10 strike price but you
would keep the $.90 premium.
Let’s look at the total profit:
Stock bought at $9.75 and sold at $10
= .25 per share profit or 2.5% return
Plus .90 premium. =
.90 per share profit or 10%
Total profit on trade = 12.5% per month
Great News About Future Wealth
There’s still time for you to earn big bucks
as a stock market investor. With Facebook
and Twitter set with IPO’s (initial public of-
ferings) planned for early 2012, you can get
in on the ground floor…. sort of. With Wall
Street’s fascination with “all things social
media” at an all-time high, financial institu-
tions and hedge funds are sure to bid the
shares of these companies higher and
higher as their profits increase. So what
are you waiting for? You have a lot to be
excited about. Your next move is to start
to educate yourself about stock trading
and investing. From there, you’ll be on
the fast track with two different winning
asset classes, stock and real estate.
Creating Wealth in the Stock Market
Tyrone Jackson is the founder and cre-
ator of the Wealthy Investor program.
Each month, Mr. Jackson teaches be-
ginners and seasoned stock market
investors how to produce monthly income
ranging from $5,000 to $30,000. Visit www.
TheWealthyInvestor.net for details. A fre-
quent radio and TV guest, Mr. Jackson wel-
comes your feedback, send to: feedback@
When Hollywood actors and Silicon
Valley executives want to increase their
wealth, they turn to Tyrone Jackson
hristian and Ruth are real es-
tate investors who are also
known as the “Property Flip
Pros.” They regularly take a
bus load of investors
around Southern California to show
them their own projects and to teach
them how to rehab properties. They
personally are taking full advantage
of the current foreclosure market.
One of the best ways to learn is
through experiencing things first
hand, the same holds true for rehab-
bing properties. The best way for po-
tential flippers to learn how to rehab
properties is to learn from the pros in
person. This is exactly why Christian
Yepez and Ruth Ortiz decided to start
providing investors with property tours.
The experienced rehab duos have been flip-
ping for 15 years. “Many investors want to
do what we do, but they don’t know how,”
Ruth says and adds: “We take them through
the process and we tell them what we do to
add value and make the property sell faster
and for more money.”
The tour I attended was frequented by
a group of about 30 investors. All were
eager to learn some real estate secrets and
shortcuts. Many of the people on the tour
were already investors, most of them were
looking for the type of surge in cash that
only real estate can provide in today’s great
New investors find this property flip tour
very educational, there is a lot to learn, this
is the Real World of the property flipping
Ruth and Christian provide one of the
few property bus tours in Southern Cali-
fornia. When asked what areas they like
to focus on, Christian replies: “We will go
anywhere the numbers are good.”
Like most experienced rehabbers, Chris-
tian and Ruth rely on a combination of pri-
vate and hard money to acquire, renovate
and carry the property until it’s sold to a
retail buyer. They rely on good business
relationships with REO brokers and real
estate agents who bring them deals often.
They also utilize well trained virtual assis-
tants to scout different multiple listing ser-
vices for deals and also to help them submit
low ball offers.
Many offers need to be made before one
“Sometimes we’ll land a deal that we
forgot we made an offer on,” chuckles
Ruth. In addition to scouring the MLS,
Christian and Ruth buy properties at auc-
tion and pick up discounted REOs and
shortsales, they also on occasion work with
distressed owners and negotiate short sales.
Being bilingual (English/Spanish) gives
the team a competitive edge in bargaining
directly with contractors for the best rehab
“Cost is a big factor in the success of a
rehab, we try and hire the most affordable
crew we can even if it means having to su-
pervise them more,” admits Ruth.
The last entire home rehab they com-
pleted cost only $25,000. Regular price
for the same project elsewhere runs around
$40,000. That price includes a new kitchen,
new two bathroom remodels, new floors,
Property Rehab Tours
Hit Southern California
Realty411Guide.com PAGE 30 • 2011 reWEALTHmag.com
new interior and exterior paint, new land-
scape, and other smaller upgrades, such as
What struck me most about Ruth and
Christian’s tour is the fact that they so gen-
erously reveal all their secrets. They also
encourage you to use their team for their
own projects, including hiring their assis-
tants, handymen and gardeners.
“We don’t mind giving our secrets
away,” Christian says, adding: “Because
the truth is most investors can’t do what
we do because real estate is not that easy.
You have to take action, you have to work
to find deals, you have to be creative and
make fast decisions.”
Rehabbing a property is not for the weak
at heart, it takes a lot of time, energy and
knowledge. Once investors realize how
time intensive it is, many opt to instead
lend their available funds to other rehab-
bers, like Christian and Ruth. In this way,
the investor can still be part of a rehab but
not be directly involved. “We have inves-
tors who like to do rehabs with us and it
works great. We find the deal, handle the
work and sell the property. They get a great,
steady return, and they can be involved in
a rehab without doing the work. It’s a win/
win for everyone,” she says with a smile.
Christian and Ruth will continue do-
ing rehab tours with their own properties,
if you are inter-
ested in learning
how to be a part
of this incredible
their website or
call them. In addi-
tion, once you go
to their website,
they have a FREE
GIFT for you,
something that you can use for your real
estate business today.
realty411 or call: 562-304-7787
that seem impossible, and approaching
deals from every angle. They are willing to
share their knowledge with other investors
and help them with their real estate goals.
They are active spokesmen to several real
estate seminars and radio shows. Caro-
lina Liquidator has easily been involved
in more than 100 real estate deals in the
York County, South Carolina area, the in-
vestments range in prices from $10,000 to
They continue to invest in real estate,
grow and develop a stronger property
management company, while spending
more and more time consulting real estate
investors on the happenings in today’s
Q: Are there any special financing
or programs available that investors
should know about?
The best deals will always be cash deals,
but we still offer 20% down deals, we
also have some new finance options in
FREE Global Membership * LIVE Chat
Find Events, Deals, Friends & MORE
Questions? Comments? Referrals?
the works, which we should be launching
soon, but we’re keeping that a secret!
Q: What is your real estate or manage-
Our team philosophy is simple, Don’t sell
something that I would not buy myself.
Make sure to treat tenants like family but
strict rules and
abide by them.
At the end of the
day real estate is
still an invest-
ment so make
sure to have
goals and struc-
ture each deal to
align with these
Q: What tips or
advice do you
have for our
A: The best ad-
vice we can give
someone is to
do your homework. Educate yourself on
real estate investments, and according to
your financial situation, find the type of
deal that works best for you, whether that
be commercial, cash flow rentals, or retail.
Prepare yourself so that you understand all
the positives and negatives of buying real
estate. Once you feel prepared, find a team
that fits you.
Our advice to people new to investing is
to only buy one or two properties, that way
you can analyze your experience and fix
any flaws before you make any other deci-
sions on any other deals. Make sure you are
dealing with a solid team with reputable
Free Gift Below
Market Spotlight, pg. 27
Realty411Guide.com PAGE 31 • 2011 reWEALTHmag.com
Join Our VIP Social Network
his is an amazing time
to invest in real estate.
You can invest almost
anywhere, in almost any
kind of property, and
profit handsomely. Yet
many people will jump
into the market, lose considerable cash, and
drop out of the market, only to miss out on
the greatest opportunity of their lifetime.
Others, with significantly fewer resources,
will amass considerable wealth. What’s the
difference? Persistence, patience and thor-
ough homework are critical deciding fac-
tors. Successful investors develop a plan,
research diligently, and persist. In addition,
successful investors understand the impact
of a single variable — TIME. Do you un-
derstand how time impacts your real estate
activities? Understanding this single vari-
able can increase your focus, extend your
patience, and give you the confidence to
persist. Let’s explore how time is the criti-
cal linkage between fix/flip, buy/hold, cash
flow/appreciation and success in real estate
How do you make money in real estate?
Appreciation or cash flow?
Both response are true, so what’s the dif-
ference? One word — TIME. For example.
suppose you buy a property at 95% of mar-
ket value, that produces a cash flow of 25%
cash-on-cash. The cash-on-cash return is
also called the internal rate of return (IRR).
Note this is not the total return on invest-
ment (ROI). The ROI depends upon how
long you hold the investment — time.
Are you satisfied with a property that
cost you 95% of market value and produces
25% IRR? That depends upon your TIME
horizon. If you work at the business of fix/
flip and expect to sell the property in 3-6
months, then you may not be satisfied with
a 5% bump in price and a total cash flow
of 6% on your investment. It gets worse.
Perhaps you needed three months to get
the property rehabbed and rented, you may
have lost money on the cash flow because
the property was vacant and you have some
interest cost on your invested funds.
Time offers different rewards and sets dif-
ferent traps for each type of real estate
Time for Fix/Flippers
For the short-time horizon of a fix/flipper,
time sets a trap at both ends of the transac-
tion. If you buy too high, you cannot wait
for value appreciation and the cash flow to
bail you out. So, with a short-time horizon
you must focus on a single variable —
your purchase price. If your purchase price
is low enough, you will profit in the short
term. If you pay too much, it’s difficult to
profit in a short term.
Time sets an emotional trap when you
get ready to flip your property. As a rehab-
ber your business is flipping. If the project
went wrong somehow, you cannot cure it
by setting a high sale price and waiting for
an unsuspecting buyer to bail you out. Your
business is fixing and flipping, not holding.
The cash you tied up in the project is not an
investment; it is truly working capital that
you use to run your business. If you bor-
rowed “hard money” to do the project, you
probably have a time-bomb ticking. When
you have fixed the property, you must flip
it, at the market price, or even at a discount
to make sure it moves quickly.
Time traps awaiting short-term
investors (fix and flippers):
Homework time trap: Time cannot cure
a high purchase price. To succeed, you
must buy low or walk away.
Emotional Time Trap: Time cannot cure a
busted project. If the project went wrong,
take the loss and flip it anyway. If you
don’t, you are out of business.
Time rewards the fix/flipper who moves
swiftly. If you make many offers swiftly,
eventually some seller will take your low-
ball offer. The faster you make many of-
fers, the faster you get one accepted. Go
fast on the buying end of the project. The
same goes for the fixing. The faster you fix
the property, the faster you can sell it. The
same goes for selling. Cut the price and
offer some sweeteners to the buyer who
can move quickly. Make your profit on the
purchase, take your profit on the sale, and
move on to the next one.
Speed is one secret for fix/flippers.
Time rewards the fast fix/flipper with more
projects, lower holding costs, and more to-
Time for Buy/Hold Real Estate Investors
For a long-term buy/hold real estate inves-
tor, time works differently, setting two dif-
ferent traps, both at the front end. Both ap-
preciation and cash flow can work for the
long-term investor, so the purchase price is
not as critical, although buying low is al-
ways an advantage. Time sets a homework
trap with an infinity of choices. You can
look at any type of property, from single-
family to multi-unit to commercial or even
industrial and raw land. You can look at
property everywhere, from North Dakota
to New York City, from El Salvador to
Thailand. How do you narrow the choices?
Get lost in the analysis and you never buy
any property at all. Don’t do the homework
and you end up with a condo in Detroit or
Miami that you cannot rent and you cannot
afford the HOA fees. You need a strategy to
identify locations and properties that will
hold value and grow for at least a decade.
What’s your plan? Probably you cannot
afford negative cash flow for ten years, or
even longer, while the beach-front property
in Paraguay increases in value. Oh, wait.
Does Paraguay even have a beach-front?
Long-term property investment requires
positive cash flow.
A little plug here for RBS Homes: we
have analyzed over 500 major metro ar-
eas to identify the very few cities that will
show long-term growth in property value
and rental income for the next ten years.
Call me (925-858-9017) to find out how.
The Final Time Trap: Is now the
right time to buy?
A few points may be helpful if you are sit-
ting on the fence just waiting to jump into
real estate “when the time is right.”
•Mortgage rates are at all time lows.
•Property values have dropped 20% - 35%
nationwide, and more in some areas.
•New construction has dropped to the low-
est rate since World War II.
•Real estate investments are producing
cash returns of 12% -35%, depending upon
the region you choose.
•Have you checked your stock portfolio
lately? How’s that working for you?
In closing, I’ll answer the question of the
final time trap with another question:
If not now, when?
With my very best wishes for your success
in real estate investing,
Richard Barrett, Partner
RBS Homes, www.RBSHomes.com
What is Your Real Estate Time?What is Your Real Estate Time?
Realty411Guide.com PAGE 33 • 2011 reWEALTHmag.com
In Memory: We regret to inform readers
that Dr. Fred Tingley passed away in early
i everyone! I have been involved
in real estate for the last 30 years
and I have been coaching for the
last 16 years. I have coached for Carl-
son Sheets, AD Kessler, Robert Allen, Al
Lowry, and most recently for Armando
Montelongo. Each program was unique
depending upon how the “guru” wanted
his material presented.
I have really enjoyed my time with each
of these individuals and over the years
have picked up many great ideas.
Today, I want to talk about how to buy,
fix and flip a house. I would like to focus on
the formula to choose a home you wish to
buy, fix and flip. The first thing is to know
what the home will sell for, once it’s fixed
up. When I go out with a REALTOR® to
look at a property, I ask them to provide
two or three comparables for each of the
properties I am considering. The compa-
rables should be just normal properties, not
REO or short sales. Once I look at the com-
parables, I will generally do a formulation
I will take 70% of the comparables. I do
know that most lenders wish to loan 65%
but your chance of getting a property at
65% are slim to nil. Once we get the 70%
price, you subtract out the cost of repairs
and the cost of getting a hard money lender.
What is left is what you can safely pay for
the home. Presenting this offer works best
when you are making it on a bank-owned
property. You have to take the rehab cost
and the cost of the loan into consideration
so that there is a profit margin for you.
For example, let’s say the after repair
value (ARV) is $200,000. The REAL-
TOR® has shown a few comparables to
confirm that the home we are looking at is
Here is an example:
200,000 X .70 = $140,000 minus
$20,000 for rehab cost (The typi-
cal cost of minor rehab).
Take this $120,000 subtract $14,000 for
hard money costs = $106,000.
This is what you would typically pay for
To purchase Dr. Tingley’s book or learn
more about his legacy, please visit:
The Coach’s Corner
Dr. Tingley mentors students & helps them achieve success
Once we get the 70% price,
you subtract out the cost of re-
pairs and the cost of getting a
hard money lender.
eople in California are used to
commuting long hours for work,
but one investor is adding more
miles than usual on his odometer.
Richard Edrosolan, CEO and
founder of Whiterock Capital, leaves his golf
course estate near the Pacific Ocean (in Ventu-
ra County) to go to a red hot market: Phoenix,
AZ. “I’m doing four rehabs there right now,” says the 30-year real
estate veteran. Richard works short sales, REOs and trust deeds.
He has experience in buying at both the California and Arizona
auctions. “I just finished three rehabs in California and I’m doing
two more as well..” He has rehabbed
properties throughout Southern Cali-
fornia, including Los Angeles, Ventura
and San Bernardino counties.
The reason the California rehabber
went out of state is purely financial.
“The price points are so different here,”
he says during a telephone interview. “A
house that in California would be about
$700,000 will cost around $175,000
here,” he says. “You can make 18% to
20% return without batting an eye.”
Edrosolan was also lured to Arizona by cheap labor and supply
costs. “I can get a whole house done for under $8,000,” he ex-
plains. The master rehabber has worked multiple markets around
the nation, including: Georgia, Utah, Texas, Washington, Nevada,
South Carolina and Hawaii.
His quest for cash flow and diversification led him outside of
his home state early on. “I realized early on that it was foolish to
only work the California market because it was foolish to tie up so
much money just in one deal. Phoenix is great because California
investors can go back and forth easily.”
One of his niches is to find absolutely discounted deals for him-
self as well as the investors that entrust him with the privilege of
expanding their portfolios.
Another of Richard’s niches is to find absolutely discounted
deals, which are purchased for cash. The properties are then resold
to locals at market value, with seller financing in place. The new
buyers happily pay him a large cash down payment and they are
willing to pay higher interest rates in exchange for the opportunity
to own a home.
Richard can find investors solid rentals in the $20,000 to $70,000
range, generating anywhere from $650 to $800 month in rents.
Typically, he likes to buy in working class areas and his bilin-
gual skills serve him in dealing with his mostly Spanish-speaking
Arizonian retail home buyers.
Currently, he is picking up as many rentals as he can for himself
and his clients. He recommends that other investors start or ex-
pand their port-
folio by adding
in some Arizo-
na rentals. For
clients who are
not interested in
are looking for
He has a private
gram where investors receive 10% interest on their funds, secured
by a first position title on the property. He says “We can customize
an investing plan for anyone!” Arizona is providing Richard and
his investors with such great cash-flow that he plans on “bounc-
ing back and forth” for a long time. He adds: “I have great people
around me. I have a great team and we work hand in hand.
Richard’s quest for rock-bottom deals and passive income for
himself and his clients has taken him to many places around the
country, yet Arizona’s close proximity and high returns will make
him a part-time Phoenix resident for years to come.
Market Spotlight: Phoenix, AZ
Whiterock Capital, Inc.
Richard Edrosolin or
Realty411Guide.com PAGE 35 • 2011 reWEALTHmag.com