Real Estate Wealth Magazine


Published on

Be sure to download our latest issue to grow your abundance today!

Published in: Business, Economy & Finance
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Real Estate Wealth Magazine

  1. 1. Sam Sadat The Master of Motivation Speaks WealthWealth Real Estate Vol. 1 • No. 4 • 2011 INSIDE: Get Out of the Rat Race with Passive Income Discover Why Now is the Time to Buy! Learn from the RE Divas Welcome to Sam’s RE Club at the Beverly Hills Country Club
  2. 2. PAGE 3 • 2011 Realty411/Real Estate Wealth is published in Santa Barbara County by Manifest Media Partners (550 Pine St., Solvang, CA 93463). ©Copyright 2007-2011. All Rights Reserved. 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, seek the advisement of a trusted financial adviser, attorney or tax consultant. Real estate investing is risky & may result in loss of capital. Please invest responsibly. PRINTED IN THE USA. GOD BLESS AMERICA Connect to our virtual network ~ online 24/7/365 FOUNDER Linda Pliagas EDITORIAL STAFF Lori Peebles Anita Cooper Andre Sanchez Brianna Bertrand COPY EDITOR Anita Cooper Andre Sanchez PHOTOGRAPHERS Sam Green John DeCindis COLUMNISTS Sam Sadat Dave Lindahl Charles Salisbury PRODUCTION Emma Krull Augusto Meneses Realty411 Wealth Real Estate To Educate, Motivate & Inspire Real Estate Investors ADVERTISING Kelly Global Marketing 310.439.1145 EVENTS & EXPOS Lawrence Ruano CALIFORNIA DISTRIBUTION Professional Distribution Solutions 1.877.418.6500 NATIONAL DISTRIBUTION KJ Banks: 805.377.6328 PUBLISHED BY Manifest Media Partners SUBSCRIPTIONS/INFO: 310.499.9545 Join Our VIP Social Network:
  3. 3. 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. BEFORE AFTER Free! 562-304-7787 or log on to: Upcoming Property Tour Event Check our website for Calendar of Events in Southern California Only.
  4. 4. NATIONAL REAL ESTATE INSURANCE GROUP, LLC PAGE 5 • 2011 Questions? Need a Referral? 805.693.1497 or 310.499.9545 contents8 and 22 Top secrets from master investor and educator Dave Lindahl. 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 ������������������������������ ���������� ����� ����� ������� ������������� ������ ������� ���������������������������� ������ ������ ����� ������� ��������������������������������� ������������������������������� ���� ������� ������������ ���������������� ����������������� ������������������� �������� ��� ���� ���������������� �������������������� ������ ���������� ����������������� ��������� �������� ����� �������� ��� ������������������ �������������������� ����� ��������� ������ ������ �������������������������������� ��������������������������������� ��������������������������������� ������������������������� ���������������������������� ������������������������������ �������������������� �������������������������������� ���������������������������������� ����������������������������� ���������������������������������� ���� ������� ����� ��� ������ ������ ������ ���� ����� �������������������������������� ����������������������������� ������ ���� ��� ���� ������� ����������������������������� ���� ������� ������� ������ ��� ����� �������� ������������������������������������������������ ������������������������������������������� ��������������������������������������������� ����������������������������������������������������� ������������������������������������������������� ���������������������������������������������� ��������������������������������������������������� ���������������������������������������������������� �������������������������������������������������� ���������������������������������������������������� ���������������������������������������������������� ��������������������� ������������������ ���������������������� ������������������� ���������������������� ������������� ������������ ������������� ��������������������� �������������������� ������������������ ������������������������������ ������������������������������ ���������������������������������� �������������������������������� ����������������������������� ��������������������������������� ��� ����� ��� ���� ���� ��� ������������������������������ �������������� ������������� ���������������� ��� �� ���� ��� ���� ��������������� ������������������ ��� ���� ��� �� ���������� ���������������� �������������� �������� ��� ���� ���������������� ���� ���� ��� ���� ������� ����������� ������������������������������ ������������������������������� ���������������������������� ������������ ��������������������� ������������������������������� ������������������������������ ����� ��������� �������� �� ���� �������������������������������� ��������������������������� ������������������������������������� ������������������������������ ���������������������������� �������������������������������� �������������������������� ������������������������ ������������������� ���������������������� ������������������ ���������������
  5. 5. We offer real estate investment in Birmingham, Detroit, Atlanta, St. Louis, Minneapolis, and Kansas City. These are real estate investment markets where our creative real estate program produces you positive monthly cash flow. Benefits & Features: • No money down – participate using your good credit alone to purchase a real estate investment • You do nothing - every step of the investment process is handled for you • Best real estate buying prices - you buy property at steep discounts, real estate deals • Hassle free investing - you never have to deal with tenant issues, yet gain the benefits of a cash flowing investment property • Cash Free Investing - the company even pays your mortgage for any vacant month for the first half year • High return - You keep 100% of the final resale net profits and the monthly rental net profits • Huge opportunities - quick resales for up to 10 investment properties per year All of the rent and end sales profits are yours, without any direct involvement in your investment property. This is no fuss real estate investment that works best for you. CREATIVEREALESTATEINVESTMENTSZero Money / No Money Down All Properties are Located Out of The State of California Actual House Sold á Memphis á Jackson á Atlanta á Indianapolis á St Louis á Kansas city
  6. 6. WE UNDERSTAND THAT EACH REAL ESTATE INVESTOR HAS THEIR OWN GOALS AND TARGETS FOR RETURNS ON THEIR INVESTMENTS. We have tailored our programs for your goals. Our innovative programs have been put to the test and can be put to work for you. Discover which program is best for you. YOUR INVESTMENT IS PROTECTED Great Properties For You To Invest In Beyond Real Estate, A Bigger Vision of Helping RISK SOLUTION Depreciation All properties have at least 20% equity to protect against market fluctuations. Down Zero Money Down up cash and can allow you to Payment purchase multiple investment properties. Stress We connect you with pre-qualified property management companies in the area your investment property is located in. Vacancy We offer a 6 month mortgage guarantee. Repairs Before you close we will rehab the investment property for you. This will minimize your need for immediate repairs. Negative All of our investment properties are positive real Cash Flow estate cash flow with a tenant immediately provided. What risks do investors take by working with Zero Money Investments and how does Zero Money Investments mitigate those risks? 866-488-1820
  7. 7. W 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 headaches? 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- vice! 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 financial freedom. 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 advance. 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 financial freedom. 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 financial independence. 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 Month!” 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- cies. 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 PAGE 8 • 2011
  8. 8. 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 about apartment buildings? Because apart- m e n t   i n v e s - tors don’t want the general public to know about their successes. Apart- 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- ment buildings, then branching off into hotels. Like- w i s e ,  A r n o l d Schwarzenegger made his first for- tune buying apart- ment houses in Colorado. Here Are The Big- gest Advantages That I See In Apart- ment Investing: 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 and clear. 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 started! 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 multi-millionaire. 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 of people. There is no better time than right now to find out if you qualify for the mentor- ing program. 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, do it now. 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 Part-Time at: PAGE 9 • 2011
  9. 9. Mr. Motivator The founder of Sam’s Real Estate Club in Beverly Hills discusses his start in real estate and explains why his message of abundance is so urgently needed into today’s volatile market. T 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 from within.” 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 PAGE 10 • 2011
  10. 10. 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 the focus. 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- erties again! “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 poet. 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 mission.” 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: PAGE 11 • 2011
  11. 11. Private lending can generate mas- sive cash flow with all these benefits, along with the security to allow you to enjoy the life you’ve always dreamt of. What is private lending? A private lender is somebody (who is not necessarily licensed) that under- stands the secrets of private lending, and how to use OPM (Other People’s Money) to make a ‘spread.’ Private lenders borrow money at a lower rate and lend it out at a higher rate, making a nice profit or spread, just like the bank! Banks borrow money at a lower rate and lend it out at a higher rate. They’re playing the ‘spread’ game. Banks make money, and so as private lenders we learn to be the BANK, for the same amazing benefits! This is Your Chance to Learn to Be the Bank! MEET OUR TEAM h ed - de de ide day il- gh r- ys GARY BOMERSHINE Gary’s strong domain ex- pertise in creative real estate transactions, sales & mar- keting, give him a unique ability to work with entre- preneurs looking to grow their business. GEORGE ANTONE Over the past five years, Mr. Antone has established his reputation as an expert in the fields of private money lending and trust deed investing, and has become a national speaker and teacher on the subjects. CONTACT USTO LEARN MORE: Wealth Classes, LLC. 1255 Treat Blvd Suite 230 Walnut Creek, CA 94597 Gary Boomershine Gary’s strong domain expertise in creative real estate transactions, sales & marketing, give him a unique ability to work with entrepreneurs looking to grow their business. George Antone Over the past five years, George has established his reputation as an expert in the fields of private money lending and trust deed investing and has become a national sepaker and teacher on the subjects. Success in life comes with having the knowledge to make the right decisions. WealthClasses offers you that knowledge. Let us help you build the wealth and the life you’ve always wanted!
  12. 12. Experienced investors know you need CASHFLOW first Experienced investors know you need CASHFLOW first This Special SECRET Report Reveals: * Massive Cashflow Without Tenants! * Massive Cashflow Without Using Your Money! * Massive Cashflow Without Owning Properties! * Massive Cashflow Without Having Good Credit! * Massive Cashflow Without Qualifying For Mortgages! Investors, Just Imagine This...Investors, Just Imagine This... Imagine – appreciation without tenants, without qualifying for mortgages, without having good credit or using your own money – or even without owning any properties! It’s Your Turn to Beat the Bank! WealthClasses will help you build wealth and the life you always dreamed of; by helping you find the path that works for you to get you there. You’ll discover how to get started, make money, save money increase cash flows and most importantly Build Wealth! Get Your FREE Report by Visiting: or Calling 1-888-888-3612 ext. 1
  13. 13. Invest with the Best The Market Leader is PAGE 15 • 2011 “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 T his sage advice, as well as nuggets of gold from other customer focused gu- rus, has been adopted into’s own 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 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- key provider.” 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- 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. makes investing Photograph from left to right: Chris Clothier, Brett Clothier, Kent Clothier Jr. and Kent Clothier Sr.
  14. 14. 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- lined.” 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 of leverage.”, 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,” states Chris. Why would an investor choose to partner Top photo: Customer Service Team at 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. PAGE 17 • 2011
  15. 15. 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% Rental Opportunity with “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 you?” Chris shares the reason for MemphisIn-’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 2011, MemphisInvest. 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 brings to the turn-key investment industry is seen clearly by their actions: 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 in. Traveling to many areas, such as New York, Chicago, Boston, and all major California cities, 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 PAGE 18 • 2011 Top photo: Premier Property Management of Memphis is the key to their investors’success! Left photo: Mark Anderson, a portfolio advisor at meets with a couple from California who purchased three rental properties.
  16. 16. Kent Clothier Chooses to Follow the Road Less Traveled Kent Clothier PAGE 19 • 2011 O 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, 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-, a truly wholesale invest- ment company. 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- vestment business. 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- ment business. More than just great customer service and access to fantastic products, investors learn how to “run their business like a busi- ness.” “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,” said Kent. 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 a lifetime!” “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
  17. 17. 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 also need the instruc- tor to take you from classroom instruc- tion to applying the tech- niques in the trenches to help you develop your newly acquired skills 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 Disciplined Investing 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 strategies. 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 month. Every experi- 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 PAGE 20 • 2011
  18. 18. 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.” “Exceeded Expectations” “Wow! Just wow! I don’t even know where to start with all the things that Remote Rehabs has done for me. Know that list of benefits that Black Belt Investors offers? Well they are all completely, one hundred and fifty percent true! All I know is that Remote Rehabs is the simplest and most profitable program I have ever experienced.” - Pek Lee Choo - Chicago, IL “Simply Amazing” “Here is what I did: I enrolled in Sensei’s program Remote Rehabs, he found me a deal and his team did all the work A-Z. Soon after the rehab and listing the property, I was amazed to receive offers on my investment! At first I put it off to blind luck, but within 45 days I receive a check for over $17,000 in net profits and I’ve been smiling since.” - Lynn McCloskey - Concord, CA Office: 951-280-1900 Indianapolis, IN 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% Indianapolis, IN 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% Phoenix, AZ 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!
  19. 19. I 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 selling. Why? 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 Real Estate Fro m th ePublish ers ofRealty411 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 PAGE 22 • 2011
  20. 20. TrueWholesaleHouses, LLC 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 professionals. 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. 7. Insurance. 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 Website: “Equity Day 1, True Cash Flow, Peace of Mind” Join Now! True Wholesale Houses, LLC brings investors Wholesale to Wholesale deals as opposed to Wholesale to Retail 888 285 1900 For information, contact:
  21. 21. True Wholesale Houses Offers Investors Security & Returns by Anita Cooper PAGE 24 • 2011 Step 1 True Wholesale Houses, acquires a foreclosed or REO property Step 2 Partner Company, Portland Funding LLC, makes a loan at True Wholesale Cost Creating Instant Equity Step 3 True Wholesale Houses does a complete Reha- bilitation of the property, creating a problem and maintenance free property Step 4 True Wholesale Houses tenants the property creating instant cash flow Step 5 The investor buys the note from Portland Funding, gaining First Deed of Trust on the property, and a 50% equity position. Step 6 Monthly interest checks are sent to the investor Step 7 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 the tenants T ruly unique, truly amazing, truly one of a kind. True Wholesale Houses 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- laboration. “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 avenue.” 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
  22. 22. 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- action.” 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 investor. 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 says. 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.” Please note: Investors will be provided, upon request, with banking references to validate True Wholesale Houses’financials.
  23. 23. We Help You Get The Most Out Of Your Investment! 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. Breakdown: 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: $85.00 803-325-1925
  24. 24. 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 your area? 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 plants. 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 dollar range. Q: How is your market handling the eco- nomic slump? A: Being based in the Charlotte, NC area, we haven’t felt the effects quiet as heav- ily as other cities, but we have noticed 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 investors. 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 investor. 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 estate investing. In 2008, Alex and Kevin joined forces to create Carolina Liquidator, LLC. They both specialize in being able to quickly analyze LOCATIONS: Rock Hill, S.C. Charlotte, N.C. Atlanta, Ga. Kansas City, Mo. Jackson, Miss. COMPANY: Carolina Liquidator CONTACT: Kevin & Alex ph: (803) 325-1925 Continued on pg. 31 PAGE 27 • 2011 Alex Franks and Kevin Burrell
  25. 25. P 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 more information). The tour is being produced by REO Bailout, a premiere real estate investing company based in California. 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 choice. “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
  26. 26. PAGE 29 • 2011 D 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 initial investment. 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 education. 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 they acquired. 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 percent profit. 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. Monthly Income 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 purchased 100 shares of XYZ stock at $9.75. Instead of selling XZY stock at a higher price after you purchased 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 $.90 premium. 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. 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
  27. 27. C 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 foreclosure market. New investors find this property flip tour very educational, there is a lot to learn, this is the Real World of the property flipping business. 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 sticks. “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 estimates. “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 PAGE 30 • 2011
  28. 28. new interior and exterior paint, new land- scape, and other smaller upgrades, such as new appliances. 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 experience, visit 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 $2.5 million. 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 market. 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? email: the works, which we should be launching soon, but we’re keeping that a secret! Q: What is your real estate or manage- ment philosophy? Our team philosophy is simple, Don’t sell something that I would not buy myself. Make sure to treat tenants like family but always keep 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 goals. Q: What tips or advice do you have for our readers? 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 references.Claim Your Free Gift Below Market Spotlight, pg. 27 PAGE 31 • 2011 Join Our VIP Social Network
  29. 29. T 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 investing. 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 investor. 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- tal profit. 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, ph: 925-858-9017 What is Your Real Estate Time?What is Your Real Estate Time? PAGE 33 • 2011
  30. 30. In Memory: We regret to inform readers that Dr. Fred Tingley passed away in early August. H 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 like this: 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 worth $200,000. 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 the house. 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.
  31. 31. P 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 landlording but are looking for passive income, He has a private lending pro- 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 LOCATION: Phoenix, Ariz. COMPANY: Whiterock Capital, Inc. CONTACT: Richard Edrosolin or Clarence Eleccion (888) 289-0221 PAGE 35 • 2011