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  1. 1. This is Your Chance to Learn to Be the Bank! Private lending can generate mas- sive cash flow with all these benefits, along with the security to allow you to enjoy the life you’ve always dreamt of. h MEET OURed What is private lending? TEAM A private lender is somebody (who is not necessarily licensed) that under-- GARY BOMERSHINE stands the secrets of private lending, Gary’s strong domain ex- and how to use OPM (Other People’s pertise in creative real estate Money) to make a ‘spread.’de transactions, sales & mar- Gary Boomershine Private lenders borrow money at ade Gary’s strong him a unique in keting, give domain expertise lower rate and lend it out at a higher ability to work with entre- creative real estate to grow preneurs looking transactions, rate, making a nice profit or spread,ide sales & marketing, give him a unique their business. just like the bank! ability to work with entrepreneurs looking to grow their Success in life comes with having GEORGE ANTONE Over the past five years, Mr. the knowledge to make the right George Antone his Antone has established decisions. WealthClasses offers reputation as an expert in Over the past five years, George has fields of private money as an the established his reputation you that knowledge. Let us help lending and trust deed expert in the fields ofbecomemoney investing, and has private a lending and trust deed investing and you build the wealth and the life national speaker and teacher hasthe subjects. on become a national sepaker and you’ve always wanted! teacher on the Banks borrow money at a lower rate and lend it out at a higher rate. CONTACT US TO LEARN MORE: Wealth Classes, LLC. ‘spread’ game. Banks make money, and so as private They’re playing ther- 1255 Treat Blvdys lenders we learn to be the BANK, for the same amazing benefits! Suite 230 Walnut Creek, CA 94597
  2. 2. Experienced investors know you need CASHFLOW first This Special SECRET Report Reveals: Investors, Just Imagine This... * Massive Cashflow Without Tenants! * Massive Cashflow Without Using Your Money! * Massive Cashflow Without Owning Properties! * Massive Cashflow Without Having Good Credit! * Massive Cashflow Without Qualifying For Mortgages!Imagine – appreciation without tenants, without qualifyingfor mortgages, without having good credit or using your ownmoney – or even without owning any properties!It’s Your Turn to Beat the Bank!WealthClasses will help you build wealth and the lifeyou always dreamed of; by helping you find the paththat works for you to get you there. You’ll discover howto get started, make money, save money increase cashflows and most importantly Build Wealth! Get Your FREE Report by Visiting: or Calling 1-888-888-3612 ext. 1
  3. 3. IK E ND !! the K L O D ney in N 4 o LA 01 m you T -4 kes R 4 a EA -80 m H 17 3High Net Yield Investments Single Family *12% to 15% Multi-Family *18% to 20% Turn-Key Properties! Quality Rehabs! Occupied w/ Great Tenants! Amazing Cash Flow! Hassle Free!Call Klondike at 317.804.4014 and Start Making Money Today!Indiana - Ohio - Michigan *Estimated projections. We advise all investors to perform their own due diligence and consult with their legal and financial advisors.
  4. 4. Realty411 Wealth Real Estate FOUNDER ADVERTISING Linda Pliagas Kelly Global Marketing 310.439.1145 EDITORIAL TEAM EVENTS & EXPOS Lori Peebles Lawrence Ruano Anita Cooper NATIONAL DISTRIBUTION Andre Sanchez KJ Banks: 805.377.6328 Brianna Bertrand CALIFORNIA DISTRIBUTION COPY EDITOR Professional Distribution Solutions Anita Cooper 1.877.418.6500 PHOTOGRAPHERS PUBLISHED BY Sam Green Manifest Media Partners John DeCindis Nikolaos K. Pliagas, Chairman COLUMNISTS Sam Sadat SUBSCRIPTIONS/INFO: Dave Lindahl 310.499.9545 Bill Gatten Charles Salisbury PRODUCTION Emma Krull Join Our VIP Social Network: Augusto Meneses To Educate, Motivate & Inspire Real Estate Investors Published in Los Angeles by Manifest Media Partners (temporary mailing address: HRS, Inc., c/o Realty411, 490 First St., Ste. C, Solvang, CA 93463). ©Copyright 2007-2011. All Rights Reserved. Reproduction without permission is strictly prohibited. The opinions expressed by writers and col- umnists are not endorsed by the publishers and/or editorial staff. Before investing in real estate, please seek the advisement of a trusted financial adviser, attorney or tax consultant. Real estate investing can be risky and may result in loss of capital. Please invest responsibly. PRINTED IN THE USA. GOD BLESS AMERICA Connect to our virtual network on many websites, including: YOU CHOOSE THE HOUSE... WE DO YOUR BIDDING                 N ATIONAL R EAL E STATE       I NSURANCE G ROUP , LLC                                  Visit us on the web: BIDFORECLOSURESAZ.COM hablamos espanol PAGE 7 • 2011
  5. 5. The Business of Investing Turn the Hobby into Full-Time Profit Ready to Exit Out of Your Day Job? Chris Clothier Shares Some Tips to Do Just ThatM any investors begin their real dealing with vacancies. In this respect, verage to help build your portfolio.” estate career part time with the Chris has learned tough lessons about keep- Now, more than ever, leverage is im- hope of one day turning their ing rentals fully occupied. “The first loss is portant given today’s lending climate andhobby into a full-fledged business. Their the best loss,” he says and explains: “Inves- rates. “Rates will not always remain thisgoal is to be financially independent so low and banks are very open to helpingthey no longer have to work at their corpo- investors with good credit acquire loans atrate job. good rates. Get them while you can.” To help readers who are yearning for If you dream of leaving your job for suc-a way out of the rat race, we asked Chris cess in the real estate industry, then ChrisClothier, co-owner of, recommends you surround yourself withto share his secrets on how he was able to the most successful real estate investorsturn his pastime into serious profit. you can. “Listen to their advice,” he rec- The Clothiers (Chris and his brothers, ommends, “it’s one of the wisest movesKent and Brett, led by their father, Kent Left to right: Brett Clothier, Chris Clothier, you can make.”Sr.), have been real estate investors col- Kent Clothier, Than Merrill & Kent Clothier, Sr. Chris does exactly that both in his per-lectively for 51 years. About 10 years ago, sonal and professional life as a coach withtheir real estate investments went from be- tors have to understand that the first offer Fortune Builders, one of the fastest-grow-ing a hobby into a full-fledged business. from a qualified tenant might be the best ing educational companies (not to mention In a short amount of time, their portfo- offer if they are in a tough rental market.” #37 on the Inc. 500 list). He thinks hiringlio has grown to include over 120 rental He adds that many investors make the a mentor makes a lot sense from a point ofproperties. (Additionally, they have sold mistake of holding out for higher rent even reducing the learning curve and holding193 properties to investors worldwide in2010; and have closed 102 properties so Maximizing monthly cash flow can be an investor’s ticketfar in 2011.) So how were they able to expedite their out of a corporate job, so keep a close eye on all costs.success in a short amount of time? The firststep may sound simple, but its importance after a qualified tenant may request a rent yourself accountable to your goals.cannot be stressed enough. From their ex- reduction. Before saying, “No way,” Chris For the Clothier family, they rely onperience as investors and property man- advises investors to think carefully. valuable friends (some of their businessagers, the Clothiers realize that organiza- “One vacant month mentors, who havetion is crucial for success. Chris explains: can be the difference Meet helped their real es-“Only after tracking and keeping clear re- between a good year Would you like to learn more about investing tate investing com-cords can investors evaluate their business and a bad year,” he in the Memphis market? Be sure to meet the pany, go back to theand take it from the status of hobby into a warns. “So if they are Clothiers in person when they visit your city. late 1960s). Theyreal wealth-building machine.” quality tenants, work DATE CITY also spend a lot of May 26 Dallas Next, it’s important to keep tabs on with them and get them June 1 San Francisco time participating inproperty expenses. Maximizing monthly in your property.” June 2 San Jose mastermind sessionscash flow can be an investor’s ticket out For the security of June 15 Los Angeles with other entrepre- June 16 Santa Anaof a corporate job, so keep close tabs on your properties, it’s im- June 17 San Diego neurs and businessall costs. “Keep an eye on such items as portant to reduce risk July 28 Atlanta owners. One thing to Aug 16 Houstontax appraisals, which affect tax rates, and as much as possible; Aug 18 Dallas note is that the roadinsurance quotes,” Chris advises. “Each of just keep in mind that Sept 16 & 17 Memphis to success may notthese factors come right off the top each a certain amount of risk For more information, contact: 901.751.7191 always be easy, butmonth. Keep track of them and periodi- is good and needed for if one stays diligent,cally make sure you have the best rates to growth. In business, as in real estate, a fine the path will eventually lead them in thedrive up cash flow.” line exists between expansion and risk. right direction. Investors also need to be proactive when Chris always advises investors to “use le- — Interview by Andre PAGE 8 • 2011
  6. 6. A safe, lucrative and scalable blueprint for financial security The Banker’s Code by Anita Cooper A to deal with taxes, tenants, repairs...all the For example, using arbitrage alone, sup- ccording to the Bureau of headaches. And they get paid last. Always. pose you borrowed $100,000 at 8 percent Statistics and the Department Compare what you do now to what the and loaned it all out at 15 percent. The of Social Security, if you fol- banker does. The banker has to learn secret spread would net you $7,000 at years’ end lowed 100 people throughout strategies of banking; how to shift risk to after paying back your funding source. Not their lives and observed their financial sta- real estate investors. All they have to do is too impressive, perhaps, but when you add tus at retirement, you would discover that tell the world that they have money to lend leveraging into the mix, that’s when you only five percent were financially set and and the leads flow in. They don’t have to really get to see private lending magic inon and Success of ready to retire. Another five percent WealthClasses offers both deal with tenants, look for deals, or action. anything else but simply create mon- MEET OUR would have to continue introductory & advanced Let’s say you leveraged the originalClasses working to make ends meet, 36 percent would ey out of thin air. Best of all, they $100,000, which you borrowed at 8 per- classes: get paid first! But you couldn’t be cent, four to one at the same rate, which TEAM an be summarizedthe re- one be deceased and with a banker, Paced Classes money out ofna- increased the financingGARY BOMERSHINE • Self banks lend available online to $500,000 total. maining 54 percent would: Financial Freedom for Everyone the deposits that theyday tionwide 24 hours a receive...or Lending out the half Gary’s strong 15 per- million at domain ex- pertise in creative real estate be dead broke. do•they? cent interest would pay out $35,000 at WebClasses available online nationwide transactions, sales & mar- Sobering statistics aside, Gary and George teach their years’ end, even after keting, give him ayour paying back unique students lending strategiesnationwidesource(s). • TeleClasses available online they ability to work with entre-d Success of there is a way to increase your wealth without be- WealthClassesTheCoursesboth online nationwide Throughout their time spent teach- offers available call Live Banker’s Code. Through • MEET OUR preneurs looking to grow introductory &compelling program, in- ing more than 250 students how to become their advanced their business.s ing chained to your desk all of your life: passive income. classes: • Videos and Audios available online dividuals learn howWealthClasses TV 24 hours a day through to use the TEAM private lenders, banker’s secrets to generate pas- Gary and Georgemarized with one otherwise known as Self Paced Classes available online na- Classes, Work- Passive income, • GARY BOMERSHINE ANTONEGEORGE “mailbox money,” offers a stress-free way tionwide sive 24 hours asafely and Mastery • Nationwide without income day Gary’s strong domainhave past five years, Mr. ex- devised a Freedom for Everyone shops, and Seminars offered live on Over the of life, one that many seek but few find. working as hard as they did as weekends pertise in creative realblueprint for suc- his estate Antone has established • WebClasses available online nationwide transactions, sales & mar- that they are in Once you’ve tapped into the power of pas- investors. Their students have reputation as an expert cess keting, give him a unique the fields of private money • Testimonials sive income, you won’t look at money or TeleClasses available online nationwide of achieved an incredible rate ability to work with lending and with deed sharing trust oth- entre- ing the investing addition toway ever again. you•can success; available online nationwide away with In the same gaining knowledge Live Courses theywas completely blown “I have learned how grow They are of- ers. preneurs looking to investing, and has become a their business. national speaker and teacherdecision. Boomershine start making Antone, to become the quality, the amount you learn, the Garyalso learn how to and George passive the bank. fering an exclu- on the income through our affiliate program. real estate investors and lenders, • Videos and Audios available information...” Jay Biggs amount online Private lendingofmagic hap- sive opportunity through WealthClasses TV 24 hours a day ho embrace work with average individuals who are pens when “... we use a combina- be MEGA Mil- you were mentored to to a limited num- l literacy get tion of OPM (Other People’s breakthrough Gary Boomershine and George Antone ber of individu- GEORGE ANTONE seeking ways to improve their passive in- Nationwide Mastery Classes, Work- Promote Wealth Classes and • lionaires through George’s CONTACT US TO LEARN MORE:at work. Over the past five years, Mr. come stream. Teaching their students how shops, and Seminars offered liveYou can Start earning Money Today! weekends and leverage. Money) system...” Dakota Lim on als through a free Antone has established his Wealth Classes, LLC. to set up and replicate the most effective increase your it’s a fantastic seminar on really under- on reputation as an expert inIn this session, wealth by doing exactly what one one strategy session.Freedom, “... 1255 Treat Blvd way to create a passive income, students the banks do. As a private and uncoventional waysGary and fields of private teach you the most Testimonialslookingcreative lender,whichhave efficientSuite 230trustproviding passive in- you standing the George will money lending and learn, step by step, a process of wealth cre- three different lending options,”Anand Ayyar at at cashflow... can method of deed investing, and has become auild wealthation that many onlyyou can of. n addition to gaining knowledge dream “I was be combined with other strategies to in- completely blown away with Walnut Creek, CA 94597 come available: private lending. national speaker and teacher d of; by help-As an investor, you work hard to create quality, the amount you learn, the exponentially:also learn how to start making passive the crease your passive income If you’re subjects. charge” type of indi- on the a “take amount of information...” Jay Biggs Support: 1 ncome through our affiliate program.ks for you to a passive income for your family. When Debt financing - This simply means that vidual who is willing to strike when you (888) 888-3612 how to get “... we were mentored to be MEGAa percentage andney, increase you first started, you had to attend semi- you lend money out at Mil- find the right opportunity, now is the best lionaires through George’s breakthrough Promote Wealth Classes and everything you collect repayment of principal plus interest time toFax: advantage of this fabulous CONTACT US TO LEARN MORE: nars, take classes, and learn system...” Dakota Lim take Start earning Money Today! a successful real on a monthly basis. could about how to be for education and Wealth Classes,as the 287-1653 (925) offer, LLC. current market is a highly 2 e introduc- Share your passion estate investor. You had to learn theWe “... it’s a fantastic seminar on reallyYou charge a1255 Treat Blvd one for private lenders. Private y your path to knowledge for creating wealth! tech- Equity financing - under- per- profitable lending VISIT OUR WEBSITE@ because standing creative and uncoventional ways y to Success, provide you with all of the tools youat looking at cashflow... the investor’s profits. Suite 230 niques that work with different markets. centage of ”Anand Ayyar has existed for decades 3 iness! Life as an as an Affiliate. means search- need investor now Combination of both - You collect both Creek, CAit’s lucrative and it’s scalable. If Walnut it’s safe, 94597 ing high and low for suitable properties, a percentage on a monthly basis and a you’ve been looking for the missing key to spending time and money marketing, talk- percentage of the profits as well. Support:generating passive income without all of ing with a lot of people to discuss the deals, When you combine these lending strate- 888-3612 (888) the headaches, you’ve found it! submitting a lot of offers, and dealing with gies with arbitrage (spread) and leverage, Fax: a lot of headaches. your profits are greatly increased; all (925) 287-1653out and with- Check Share your passion for education and And then finally, locating a funding out signing a loan, spending your own mon- start enjoying the freedom today that a knowledge for creating wealth! We passive income stream offers. fast as possible. Investors get ey or even getting your credit checked. provide you with all of the tools you VISIT OUR WEBSITE@ need as an Affiliate. PAGE 10 • 2011
  7. 7. Affordable Legal Protection for InvestorsI by Lori Ellen Fouts not a financial issue but a simple step as a concerning questions. When was the last prudent business-person to get the advice time your health insurance company called f you are a real estate investor, and help that you need to make the best de- you to ask you to please use your policy? agent, broker, homeowner or renter, cisions? Just think of the things you could In fact, you may utilize your plan for most you have often been presented with speak to an attorney about: asset protection, things the same day that you sign up and a contract to sign. How many times loan modifications, short sales, landlord- some pre-existing issues are also covered. have you had that contract reviewed tenant issues in multiple states and identity For last ten years, my family and I haveby your attorney before signing? Need- theft, just to name a few topics. What if you been using the Pre-Paid Legal Life Eventsless to say, that contract was written by could access a top-rated attorney in any Legal Plan. This has helped us with the someone else’s area of law, whenever you wanted, AND day-to-day issues that come up for every- a t t o r n e y, a n attorneys in ALL fifty states? This is where one: The speeding ticket, getting a rental attorney with Pre-Paid Legal (PPL) comes in. PPL is built deposit returned for our college-aged son, their interests on the insurance model where you pay a resolution to the credit card company dis- in mind, not monthly fee and then have a menu of avail- crepancy. yours. able services that are covered under your As for helping me as a real estate inves- Most of us plan. But unlike a very costly health and tor, I could not even begin to say how many do not call an attorney to auto insurance, Pre-Paid Legal has built a times that I have used the service, or could review our documents, successful and affordable service. And un- even begin to calculate how much money I much less to simply ask a like other types of insurance, members are have saved by doing so. Actually, it would question or to find out our encouraged to use their memberships, and be difficult to calculate the savings because rights because of the high use them often! I can’t say I would have used an attorney at hourly costs. Often we To encourage the Pre-Paid Legal mem- $200 to $500 per hour every time I needed don’t know whom ber to use their plans right away, they offer advice on a landlord-tenant issue or have to call. What if call- a comprehensive will at no charge, and en- ing an attorney was courage you to call an attorney to ask any Continued on pg. 54
  8. 8. Market Spotlight: JACKSON LOCATION: Jackson, Miss. COMPANIES: company and other investors in our com- HomeStar, LLC munity are having great success. Jackson, Premier Equity Miss., was not a bubble town, we were Group, LLC never inflated like other high-appreciation CONTACT: and over valued areas. We are still retail- Julie Harrison ing houses, therefore we still have great (601) 291-0689 comps and a good mix of home owner- Justin Harrison ship in the areas where we are providing (205) 616-3761 investment properties. The banks are the one’s taking the bath. We continue to pickQ: What kind of opportunities are up their discounted inventory, get the prop-you seeing in your market? erty rehabbed and get it performing again.Julie Harrison: Simply put, great We’re not sure how long its going to last,cash flow. Our investment team has ing. Our bread and butter cash houses can but we are going to take full advantage ofestablished relationships in our community be acquired for $48,500, with an average this slump.that allow our company to acquire qual- rent of $750. It’s really hard to beat! Mis- Q: What is the best part of being an in-ity single family houses in stable sissippi property taxes vestor in your city?neighborhoods, complete with are among the nation’s Julie: The demand for Jackson and ourrenovations, leased and set up lowest, also contribut- houses has been awesome, we stay soldwith property management.Our ing to the great cash out. Investors from across the country areprice points are hard to believe flow equation. coming in weekly. We have met investorssometimes. For example, our Q: How is your mar- from California to Australia, investors frominvestors are able to pick up a 4 ket handling the eco- almost every state have contacted our com-bedroom, 2 bath full brick newly nomic slump? pany at some point. I have built high-endrenovated house for $67,000, with Justin Harrison: It re- new construction houses for 30 years, mil-an average rent of $875, which are ally depends on who lion dollar homes. Now I’m buying middlegreat for 20 percent down financ- you’re talking to. Our income houses and have become a more Julie Harrison
  9. 9. Join Us for buy-and-hold Q: Are there any investor. I wish special financing I would have or programs avail- started 20 years Special VIP able that inves- ago, in the last tors should know three years I’ve about? compiled 25 Property Tours Justin: It’s becoming free-and-clear more of a cash game rentals. I’ve never Nice rental home in Jackson, Miss. everyday. With that be- had so much fun with real estate. ing said, we still have 20% down financing Q: Why should investors buy rentals in available. We keep our transactions clean, Educational Investing Tours your area? no creative financing, Julie: You have two key it just doesn’t work in TOP Cash Flow Markets components, the MARKET long term. A 20% down Wealth Wealth Real Estate th A th A e Pu Sp blish e Pu Sp blish ec ec ia ia l Ed s of l Ed s of er er iti Real iti Real on ty on ty fro 41 and the TEAM, the team is fro 41 purchase runs about m 1 m 1 Vol. 1 • No. 1 • 2010 Vol. 1 • No. 1 • 2010 invaluable. I would say we $17,000 out of pocket are bit seasoned, we’ve seen Shares His Secrets! and includes closing Shares His Secrets! it all at this point. We’ve costs. Most investors drilled down to the best can get up to four mort- areas that yield the best re- gages. We do have fi- turns. We really believe in nancing available for Serving the Needs of Accredited Investors - INSIDE: Information to Grow and Maintain Your Wealth Serving the Needs of Accredited Investors - INSIDE: Information to Grow and Maintain Your Wealth 16 19 35 buying a rental property in Words of Wisdom from Maverick Investor Group Bruce Norris Prepares for Annual properties over four, but Masters of Real Estate Reveals the Next BIG Thing “I Survived Real Estate” Charity a home ownership area, ver- Janelle Harrison, baby Willow you have to have strong We’ve Been Investing sus buying a rental property cash reserves. in a rental area. We like to & Justin Harrison in Jackson, Miss. Q: What tips or ad- Out of State for YEARS, have neighborhood pride. vice do you have for our readers? Come Learn & Profit! It all starts with picking a good house Julie: As always, due diligence is key in any and ending with strong property manage- venture and the understanding that we are Meet Our Affiliates, ment. Our turn-key approach tends to work in a long term investment period. Buy and Property Managers & On-the-Ground Teams A 20% down purchase runs about $17,000 in Cash Flowing Cities, out of pocket and includes closing costs. such as: Being • Houston, TX Lansy rda is dlo Ea with the best. We handle the transaction from hold what you can within your means. With start to finish. You have a performing in- our company, we love for our investors to • Phoenix, AZ the RIGHT team! vestment from day one. come visit us and see all the upside to Jack- Q: What makes your company unique? son. We want to meet you and see you face • Cleveland, OH Julie: Experience, thirty years of building has helped establish our in-town relation- to face. We want you to see what • Indianapolis, IN ships from bankers to contractors. Over- you’re investing • Birmingham, AL coming obstacles and backing up our work in. Remember this separates our company from our competi- is a long-term rela- • Kansas City, MO tors. To back that up, we offer a one-year tionship. We want warranty on repairs. Yes, we are that con- you to be comfort- • Butler County, OH fident in our houses. Going back to the TEAM concept, when you buy from us able with our team and we want to be • and Many Other Areas! you join our team. You become an investor with us, it’s a long-term relationship comfortable with Premier Equity Group Team: the investor. Chris Donaldon and Justin PRIVATE & GROUP TOURS Harrison at the Masters. AVAILABLE Contact Us for Details and Tour Schedule — Log On to Our Private Network Featuring Both Long-Term FREE to Join * LIVE Chat Available Hold & Flip Opportunities! We design & deploy eMails or eFaxes to any demographic, industry or city Find Events, Deals, Friends & MORE Instant & Trackable - Special 10% Discount! 310.439.1145 | Call 310.499.9545 or Questions? PAGE 13 • 2011
  10. 10. Dorfman Delivers Success Outstanding property management is essential for success and with over 35 years experience, Dorfman Property Management is the industry leader in Indianapolis. The family-run company has owned investment properties since 1960. Jeff Ader, a Dorfman executive, tells us why the company is so special.Q: Tell us a bit about Dorfman Property common mistakes are purchasing in a high Ader: First of all, it’s always important toManagement, how did the company come crime or undesirable neighborhood and diversify your investment portfolio. Hav-about? not doing a thorough rehab. ing different asset classifications, such asJeff Ader: Dorfman Property Manage- real estate, stocks, bonds and precious met-ment was founded 35 years ago by Martin Q: Do you have many clients from out of als, helps reduce risk in your overall invest-Dorfman and his daughter Miriam Ader state and other countries? ment manage family A d e r : Ye s , w e Secondly, people can build wealth andowned properties service many cli- accumulate a high net worth by buyingas well as provide ents from Cali- and holding rental properties over a periodfee based property fornia as well as of time. Here is a simple example of whymanagement ser- Arizona, Florida, rental properties can be such a powerfulvices for Indianap- Hawaii, Illinois, wealth generating investment:olis investors. New York, Ohio, Georgia and many Exhibit A: $20,000 lump sum @ 5% inter-Q: From an inves- more. In addition, est at the end of ten years equals $32,578tor and managers we have clientspoint of view, what in Italy, Austra- Exhibit B: $20,000 cash outlay on aare some common lia, France and $100,000 rental property, which leavesmistakes that in- Japan. $80,000 financed with 5% appreciation pervestors make? year at the end of ten years equals $82,889Ader: Overpaying for a property and not Q: Why do you think people should havedoing research about rental amounts. Other rental properties in their portfolio? Continued on pg. 16 Rent your property FAST HIRE Dorfman Property Management Our Available Services:
  11. 11. Northern California Based Real Estate Investment Club Expands South to Meet a Surge in Business Kathy Fettke relocates to prices in Sydney or Singapore. Malibu & opens new branch We hope to continue to educate people locally and internation- by Linda Pliagas ally about the opportunities that exist for real estate inves-Malibu, Calif. — Real Wealth Network, the tors today.”internationally-known real estate invest- Fettke, along with her hus-ment club headquartered in Walnut Creek, band Rich, director of busi-Calif., has expanded its offices to South- ness development, and theirern California. For the past six years, Real 11-year-old daughter, Krista,Wealth Network has assisted its members moved to Malibu in Decem-in increasing their wealth through quality ber and have been busy settingeducation, resources and finding turn-key, up a new home and businesshigh cash-flowing investment properties branch. Director of operations,nationwide. Ron Manabat, remains at the Walnut Creek markets puts $8,000 more per month in our “We need to have a presence in North- office to oversee the Northern California pocket.” Fettke is a prime example of howern and Southern California to be able to home base. savvy investors can reside in their dreamaccommodate our investors,” says Kathy The Real Wealth Network team plans to city and fund a lavish California lifestyleFettke, CEO of Real Wealth Network. host monthly live events in both Northern with out-of-state rentals. Savvy investors can reside in their dream city and fund a lavish California lifestyle with out-of-state rentals.“Eventually we will include New York and and Southern California.Chicago as well, but this is a good start.” The Real Wealth Show, a Top 10 weekly The expansion came shortly after Fettke podcast on iTunes where Fettke shares herreturned from Sydney, Australia where veteran real estate investing advice, is con-she met with over 300 prospective inves- tinuing to build an international audiencetors who have since purchased hundreds of in over 25 countries.units in the United States through her net- As an investor, Fettke is practicing whatwork. she preaches. Malibu is a high-priced mar- While in Sydney, Fettke appeared on ket so she chose to rent a residence and buyCNBC’s Squawk Box and was inter- additional rental properties instead.viewed about the U.S. housing market. Explaining her logic, “The mortgage on“The show hosts our $1.2 million Malibu beach home would be twice what we Kathy Fettke talks U.S. real estate in Australia.were amazed thatproperties could pay in rent. Instead, we are us- To sign up for a free membership, visitbe purchased for ing that $1.2 million to buy in- Be sure toless than $50,000 vestment properties outside of download the free report, “7 Steps for Newand be rented for California, which bring us three Real Estate Investors.”$750,” Fettke re- times what we pay here in rent! To hear the CNBC interview, please visit:calls. It’s all about cash flow. Renting “They’re not our primary residence and buy- =1678724672&play=1used to those ing rentals in more affordable The Fettke Family in Malibu, Calif. PAGE 15 • 2011 PAGE 13 • 2011
  12. 12. Dorfman Delivers, pg. 14 As you can see, you are utilizing ordinates rehabbing vacancies the power of leverage and appre- and maintenance of occupied ciation of real estate, which can properties. In addition, she turn $20,000 into $83,000 at the communicates with owners to end of 10 years, as opposed to provide guidance about their a savings account that will leave investments and with tenants to you $33,000. This doesn’t even solve problems on a daily basis. take into account a positive cash Q: What makes your property flow of $200 per month, which management unique and why would add an additional $24,000 of income over the 10 year period. This clearly shows how powerful rental property can be as a long- term investment. Q: Tell us about Invest, when did you decide to branch out and start the property sales di- The Dorfman team: Jeff Ader and vision of the company? Rhonda Steele attend a real estate event. Ader: After managing hun- dreds of properties over the do you think your company has years for many individual inves- grown so much? Having different asset classifications, such as real estate, stocks, bonds and precious metals helps reduce risk in your overall investment portfolio. tors through Dorfman Property Ader: Our company has exten- Management, it became appar- sive knowledge of Indianapolis ent that investors needed guid- investment properties both ur- ance in selecting, rehabbing and ban and suburban, resulting in managing their rental properties the ability to advise investors for maximum returns. The con- as to the best areas to maximize cept of a turn-key real estate in- rental income and reduce ex- vestment company that locates, penses. rehabs and positions the prop- We also have the capability of erty for positive cash flow in managing a large volume of in- the Indianapolis area was born. vestment properties yet are able was formed to to provide personalized services help clients locate quality prop- to individual owners. Our leas- erties, at great locations with the ing and operations manager, best cash flow returns and with Rhonda, personally reviews ABSOLUTELY NO EFFORT every tenant application along on their part. with overseeing the details of Q: How long have you been in- the rental process. vesting in real estate? Rhonda’s attention to detail Ader: I personally began invest- and expert knowledge of the ing in 1976. marketplace has resulted in re- Q: Tell me about Rhonda and altor referrals from all over the her role in the company? country. Our philosophy is that Ader: Rhonda Steele is the head by being responsive to prospec- of company operations and leas- tive tenants seven days a week, ing. She is responsible for all and being readily available to aspects of the leasing process set leasing appointments, maxi- as well as supervising leasing mizes the ability to quickly agents and office staff. She co- lease PAGE 16 • 2011
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  15. 15. Dave Lindahl’sSyndication Secrets Learn How to Grow Your Portfolio FASTERK nown as the “Apartment King” modest three-unit rental in a depressed people’s annual salary! and the leading authority on area of Boston. He soon made a goal to How did Lindahl acquire so many commercial real estate invest- acquire 1,000 units as quickly as pos- properties and accrue an abundance ing, Dave Lindahl currently sible, so he transformed himself from of cash flow in such little time? Using a owns more than 7,500 multi- “a dead broke landscaper” into a savvy sophisticated technique that investorsfamily units in some of the nation’s best syndicator. call OPM (Other People’s Money).emerging markets. His private acquisition Within a short time frame, he was By offering accredited investors anfirm, the Bostonian Investment Group, managing millions of dollars worth of opportunity to join him on deals, Lindahlalso owns interests in retail centers, self assets on a national scale. In fact, it only was able to reach the destination to realstorage facilities and office buildings took him 3 1/2 years from the time he estate riches much faster. He estimates Like most investors, Lindahl started started investing to be able to retire and he’s raised more than $30 million inout small. His first purchase was a enjoy a monthly income larger than most capital from investors around the PAGE 21 • 2011
  16. 16. His success came so quickly and Investors can also control much larger Tell us how your bootcamps and self-profoundly that soon others began to re- real estate deals than they would have, study courses help investors learn toquest his knowledge, which led Lindahl had they not participated in the syndica- package it all together?to become a top educator in the industry. tion. Lindahl: They basically take you step byHe has shared the stage with such lumi- step throughout the whole process. Firstnaries as Tony Robbins, Robert Kiyosaki Q: Dave, we know you come from a of all, I show you where the money is soand Donald Trump. In fact, Trump asked very close-knit family. Were your sib- you know where to find it. A lot of peopleLindahl to write a book on commercial lings and extended family some of don’t know anybody with money becausereal estate, “Trump University Commer-cial Real Estate 101: How Small Inves-tors Can Get Started and Make It Big.” Lindahl has also authored numerousother books and courses including suchbest sellers as Emerging Real EstateMarkets, Apartment House Riches, andThe Real Estate Marketers’ Tool Kit. What’s most surprising is that Lindahlwas at first reluctant to accept responsi-bility for other people’s money, but he re-alized it was the only way he could reachhis goal of amassing 10,000 units. So, heset out to formulate a program to stream-line the process and ensure maximumsuccess. We recently caught up with Dave in be-tween his travels to discuss syndicationsand their importance in growing a well-balanced real estate portfolio. “The Real Estate Business is Really a MARKETING Business” your early investors? they are hanging around in the wrongQuestion: When did you discover the Lindahl: When I started investing, I be- places. So I show my students where topower of real estate syndication? came partners with my brother and sis- locate people with money.Dave Lindahl: I started syndicating more ter, but they weren’t my investors. When Secondly, I prepare my students onthan seven years ago, when I realized I started out, my siblings were all broke, what to say when they attend events orthat it was easier to buy bigger properties so they did not have any money to put locations where there are people withthan smaller properties. into my deals. That’s why I had to go after money. I teach them the initial introduc- I was self-funding my own deals before investors. My father, who told me to stay tion and how to offer an opportunity. Wethat and I realized I was going to need away from real estate when I first started, never ask for money, we always offer op-a lot more money to reach my goal. By actually became a very large investor in portunities.then, my objective had changed from many of my deals and still is. Next, we teach how to close for the[owning] 1,000 units to 10,000 units. I re- second presentation, which is usually aalized the more I could get other people Q: Is it a good idea to start with friends lunch or dinner presentation. There youto partner up with me, the more deals I and families when raising capital for lay out exactly who you are and what youcould buy. syndications? do. Of course, my students also learn Lindahl: Doing business with family mem- how to structure deals properly.Q: From an investor’s point of view, bers can be a great way to start, but when One important thing to note is that ifwhat are some positive aspects to ac- family and friends are involved there can you’re going to be pulling in money in aquiring properties through a syndica- be more emotional involvement in the deal, you have to consider the Securi-tion? deal. I do see a lot of my students start ties and Exchange Commission (SEC).Lindahl: Joining a syndication is great for with family and friends then graduate to A good part of the training is how to staybusy investors because they don’t have larger investors. within the boundaries of SEC deal with management, they can have People always ask me: “How do I avoidpassive income and participate in the ap- Q: Organizing syndications takes a lot the Securities Exchange Commissionpreciation of a deal. of skill, expertise and marketing flair. rules.” I always say, “You don’t, you PAGE 22 • 2011
  17. 17. follow their rules, which are easy Upcoming Events style, are you buying and holding orrules to follow but you have to know are you doing short-term deals by re-what they are.” by Dave Lindahl positioning ? The most important part of my Lindahl: It depends on the market and thesyndication training is how to man- PRIVATE MONEY SYNDICATION type of property. We typically like to holdage the deal and how to manage San Diego, CA ... May 20-22 and maximize the appreciation since thethe investors. Now, I’m not speak- deals we acquire have strong about how to be a landlord, I’m FORECLOSURE BOOT CAMPtalking about how to be an asset Chicago, IL ... June 3-5 Q: Donald Trump asked you to writemanager. Because as a syndicator, the book on commercial real estate foryou have to manage your investors, MANAGING THE MANAGER his educational series, how was it towhich can be more difficult than work with him? Boston, MA ... June 10-12managing properties. Lindahl: Donald is a true delegator. If you’ve ever seen “The Apprentice”, he isQ: Really, that’s interesting, why COMMERCIAL TRAINING ACADEMY just like the way he is in on the show. He’sis that, Dave? Boston, MA ... July 15-17 tough, but fair and down deep he’s actu-Lindahl: Because of the emotions, ally a very caring person.because of the personalities. And APARTMENT HOUSE RICHESit’s always the person who puts in Boston, MA ... September 13-16 Q: Besides Trump who are some otherthe least amount of money who is real estate leaders that you admire?always the biggest pain in the butt! Lindahl: My first mentor was a guy by the ey will come,” but it’s always a good idea name of Mark Shavell from Cape Cod,Q: It must be such an awesome feeling to be marketing for both at all times. Mass. He really introduced me to con-to know that people place such trust servative investing and commercial realand high regard in you and your deals Question: Your private acquisition estate.for them to invest with you. company the Bostonian Investment I also look up to Sam Zell out of Chi-Lindahl: It is. But when I first started, I Group is known for acquiring large cago. He is known as “the grave dancer,”didn’t really want to be responsible for multifamily complexes and I know you because he made his billions buying inother people’s money. It took me a while also invest in self-storage facilities. markets just like these, markets that areto start offering opportuni- down.ties so that others could Q: Besides commer-come into my deals. But a cial real estate, your ex-lot of people wanted to be pertise is also in locatinginvolved and I realized it emerging markets. Can youwould give us the ability to give readers a tip on how todo more deals. However, locate a booming area?a lot of responsibility goes Lindahl: It’s all about jobalong with having other growth and an increase inpeople’s money, and it population. We follow andtakes time and special- read the business periodicalsized knowledge to be able on a regular basis and also re-to do that properly. search demographic trends.Q: What comes first: The Q: Do you have any otherdeal or the investor? tips or suggestions for ourLindahl: Both. The real readers?estate business is really a Lindahl: Putting together amarketing business. You syndication allows investorsneed to be marketing all to use leverage and acquirethe time. You should be larger deals using other peo-marketing for deals and ple’s money as equity. It alsoyou should be marketing gives investors confidence tofor money. What other type of properties do you get into larger deals knowing they always If you don’t have [monetary] commit- like to acquire? have the resources behind them.ments for any deals that may come up, Lindahl: We also buy triple net lease — Interview by Linda Pliagaswhen you go to negotiate for one, sub- (NNN) properties, office buildings andconsciously you will negotiate from weak- retail centers. Actually, retail centers areness because you know you don’t have our favorite type of property acquisition at Receive Dave Lindahl’s “Insider Secretsthe money. A lot of people actually self- the moment. to Creating Wealth” for FREE, simply callsabotage themselves by doing this. 1-800-559-8590 or visit: I’ve heard, “If it’s a good deal, the mon- Q: What is your current investing PAGE 23 • 2011
  18. 18. Where Do You Buy Now? The Search for a 10% growth Market by Charles Salisbury, MBAA loan and property taxes ll successful investments begin kets that I seek. You can paid. Additional expens- with a plan of action and steps find these markets through es such as repairs and designed to support your ob- various ways, including the 10% property man- jective. The more time you put reading national publica- agement fee is also a taxinto finding the right investment, the more tions like Forbes and For- benefit.experience you’ll get. And, like all other tune, which identify growth I’ve had people attendthings in life, you will get better at find- trends and publish must- my $39 seminar and telling great investment opportunities. Mak- read information like “The me that they were of-ing mistakes is part of the process because 10 Hottest Urban Growth fered real estate coursesthere is no perfect process or perfect in- Markets” or “The Best for $5,000, which willvestment. People are different and invest- Places To Retire.” teach them how to make a “fortune rehab-ments are different. Results vary over time Many other publications will also identi- bing foreclosures.” There are TV programsbecause markets shift. What worked yes- fy growth areas. I occasionally receive tips glamorizing the role of “simple folk” whoterday might not work the same next time. from residents of a local area who tell me can “flip” properties and get rich. It’s goodSo, being adaptive and flexible is important about all the activity going on in their com- entertainment, but it’s only for the pro-when searching for the right place to invest munity. When you live in a growth area, fessionals. If you’re not in the real estateyour money. you can’t help but know it. You can see and business full time and able to do most of Looking for a growth area in real estate experience the growth. the work yourself, then it’s not for no different. I will share with you the If you don’t live in a growth area, but The risk is too great and the profits are tooway I look for undervalued markets so that want to locate them, you can find out where small. You don’t need to spend money toyou can mimic me or use my experience as Wal Mart and Kmart are building their new learn how to loose money under the falsea resource to add value to whatever you’re super centers or find out where those new impression that you will “make a fortune.”doing. building supply houses are locating new Real estate is the number one investment My initial goals are to locate areas in the stores. Lowe’s doesn’t build large stores to in America and you can ensure your futureU.S. where growth is almost predictable sell building supplies unless there is a need. by building a secure investment real estatebecause certain infrastructure investments Using common sense and knowing what to business. You can also lose money by mak-have already been made. Growth areas are look for will be important in your search ing bad decisions and in real estate you ownidentified by new roads or the widening for growth markets. the mistake when you own the property.existing ones to handle increased traffic. The final test for me is an actual visit to The program that I outline in my book,Usually the growth areas are suburban as the area. Go there, rent a car and travel the “The Incredible Investment Book: Thean established and aging community finds area. Talk to local residents and businesses #1 Way to Invest in the #1 Investment inits citizens looking for better schools, bet- and ask about plans for the future. The lo- America,” is conservative and very disci-ter shopping and newer recreation facili- cal residents know what is being planned plined. It is designed to avoid common mis-ties. Corporate America also searches for by reading their local newspaper. It costs takes and protect your investment. Faith inurban flight and growth to determine where money to do research, but the reward will yourself begins with having faith in some-they are going to expand and build those be a pay back for many years to come. thing or someone that has stood the test ofnew superstores. County governments usu- Because the demographics change over time. The advice in my book was inspiredally lead the way by identifying urban ar- time, it is always advisable to return to the by every mistake I made in real estate foreas that are primed for growth. They fund website to locate the the past 30 years. I wrote it to save you thenewly created redevelopment areas, which new areas of interest and see a selection of headaches and heartaches I’ve endured ininclude new roads, freeways, industrial homes in the 10% growth areas. Also, the the quest for real estate success.parks and schools. That attracts major re- tax benefits may change over time. Despitetailers and businesses. the fact that you are only putting 20% down Register online at www.TenPercentDown. In looking for growth that will support payment and using 80% of other people’s com for complimentary reports on anymy 10% property appreciation objective, money (OPM), you’ll enjoy 100% of the areas the company is buying in and/orI am a follower, not a leader. Corporate tax benefits. For example, you can depre- researching. For more information aboutAmerica and local governments determine ciate your investment property over 27.5 Charles Salisbury, please contact himwhere it will be and create the growth mar- years, deduct the interest on your mortgage directly at: PAGE 24 • 2011