Realty411 Magazine - Featuring Kathy and Rich Fettke with Real Wealth Network

Vol. 5 • No. 4 • 2016 | A Resource Guide for Investors
Realty411
Print • Online • Network
Cashflow with
CONFIDENCE
SURF’S UP!
www.realty411guide.com
INSIDE: PRIVATE MONEY411 - FINANCE YOUR DEALS NOW!
AND
SO ARE
RENTS.
Real Wealth Network
founders Rich and
Kathy Fettke help
others create freedom
with high-cashflow
rental properties.

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411
CONFIDENCE
Vol. 5 • No. 4 • 2016
AND
SO ARE
RENTS.
411
CONFIDENCE
Vol. 5 • No. 4 • 2016
AND
SO ARE
RENTS.pg.15
pg.29pg. 56
Realty411Guide.com PAGE 3 • 2015 reWEALTHmag.com
Photo right:
Meet the
team at B2R
Finance. Left:
Syd Leibovitch
with Rodeo
Realty in
Beverly Hills.
Syd owns the
largest pri-
vately-owned
agency in the
United States.
Rich and
Kathy Fettke,
founders
of the Real
Wealth Net-
work, embody
the California
landlord
lifestyle. They
enjoy life in
Malibu, but
invest around
the country.
P R I VAT E
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The Source for Real Estate Finance from Realty411guide.comThe Source for Real Estate Finance from Realty411guide.com
Photograph from left to right: GREGOR WATSON, Chief Revenue Officer; DARREN THOMPSON, Chief Financial Officer;
PAUL BEHM, Chief Information Officer; JASON HOGG, Chief Executive Officer; MATT MALANGA, Chief Marketing
Officer; KATHARINE BRIGGS, Chief Operating Officer; JOHN BEACHAM, Chief Investment Officer
HereComestheNewGuard
B2RFinanceLeadsLendingInnovation
FALL ISSUE 2015
contents
pg.78
11 Publisher’s Note: In Morgan’s Memory
15 Surf’s Up, and So Are the Rents
18 Kathy & Rich Fettke’s Real Wealth Network
26 Success Secrets with National Note Group
29 Here Comes the New Guard at B2R Finance
31 Exit Strategies Made Simple with Philanthropy
32 Meet Your Creative Financing Experts
33 Disclosing Risk in Private Loans
37 Two Tactical Minds in Finance Team Up
46 Benefits of Using a Private Lender in Deals
49 A Jumpstart with Colony American Finance
52 Way of the Real Estate Warrior by Sensei
54 The Dynamics of the Self-Directed IRA Card
56 Exclusive Interview with Rodeo Realty’s CEO
59 The Clothier Family, based in Memphis
Lead Four Companies on INC 5000 List
62 Kent Clothier States The Time is Now
62 Overcoming Inventory and Lead Shortages
69 Land Trusts and the Savvy Landlord
70 Why to Consider Commercial Real Estate
72 Understanding Lines of Credit with REIA NYC
74 Investors: Welcome to Your Money Patch
76 The Next Tsunami: Senior Assisted Living
78 Live the Life in Style - #LIVETHELIFE
82 Startup Tips for Entrepreneurs
83 Find Your Power with Will Duquette
84 From Top Model to the Top in Real Estate
86 Safety Tips when Showing Listings
89 Steve Love on Why REIAs are Vital
90 Photographs from Our National Expos

We Create Wealth One Property at a Time
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IMPORTANT DISCLOSURE: Publishers and staff are not responsible for performing due dil-
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investing in real estate seek the advise of your trusted financial advisor, attorney or tax
consultant. BEWARE: Real estate investing is risky and may result in loss of capital.
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Linda’s Letter
LindaPliagas
Follow my industry updates and connect with me:
I
had a big smile plastered on my face that
went from ear to ear. Our Empire State
Real Estate Investors’ Expo in Times
Square had closed with a big bang!
We hosted a spectacular event honoring the
work of Teresa Martin, Esq., with REIA NYC,
which was attended by over 300 people. The
entire sixth floor at the Doubletree Suites on
Broadway was buzzing with activity with peo-
ple from around the country. It was a proud mo-
ment. When my trip was finished, I purchased a
gift for my daughter and my office co-worker,
Morgan. I was so excited to return to California
to share the great news of our latest successful
event with him.
My joy was diminished as soon as I received
the call upon my return home. His girlfriend,
Carol, was on the line speaking to me slowly,
in a soothing voice, that is when she told me.
Our sweet office worker had passed away in his
apartment. We don’t really know what hap-
pened, what we do know is that Morgan Schaal
was a sweet and gentle soul. He arrived before
the start of his shift every morning. Whether it
was calling up top CEOs to ask them to adver-
tise or walking our office dog, Scruffy, around
the block, Morgan never complained about his
duties. He was willing to do whatever it took to
make sure that the business ran smoothly, and that I was productive
and happy. Morgan had worked in real estate most of his adult life;
his parents are retired Top Producers in the Santa Barbara area.
He tried his hand at property management for awhile. I’ll never
forget the day after he attended our first expo what he told me
when I asked him if he enjoyed learning new facets of
real estate. He immediately exclaimed, “Oh yeah! I’m
learning a lot of new things that I never knew before.”
For me that was the ultimate compliment. Introduc-
ing new ideas and concepts to even a second-genera-
tion real estate pro made me so proud.
It’s been really difficult to be without Morgan by my
side. Besides selling advertisements and sponsorships,
he made me laugh, kept me calm, and lifted me up
when I was feeling down. They say God chooses the
good ones first and that is certainly the case here. I
know Morgan is in heaven being just the perfect side-
kick as he was on Earth. We miss you, Morgan.
Linda with Morgan Schaal
Jill Benes from Real Wealth Network and Linda Pliagas network in front
of the B2R Finance exhibitor booth at the Los Angeles Cashflow Expo.

Our Next Tour Jan 15th - 16th - 17th
“If you are looking for a true mentor, someone who guides you step by step through the House Flipping
process, Anthony is thee go to guy. I have been burned by so called “real estate gurus” before and all
they do is take your money in exchange for a few phone calls and books! The education that Anthony
offers is invaluable. Any and all questions you have about the home flipping process WILL be answered
realistically and honestly which to me speaks volumes about this man and his character. Hope to see
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“This weekend changed our flipping business. Anthony has very high integrity, standards, and is very honest
and forthright. He helped us one-on-one and is there whenever we call. He's become a wonderful partner and
true , caring friend. We're in our 5th deal and growing. Everyone tells you to build a team, but Anthony actually
connects you to the best people and networks. We saw several houses on the tour, learned a lot, found many
colleagues for joint ventures and many resources we didn't realize were out there. Thank you Anthony!” Jan - Investor
“I attended Anthony’s bus tour looking for a team that were investing in real estate today with current strategies
that worked. What I found was just that and I picked way more information and surprising ly specific tips that I
could implement right away!” Wilson - Investor
“My husband and I took Anthony’s class last year. During the class we learned a lot about business and more on the
bust tour. His group is very knowledgeable and helpful. I have a will recommend taking his class and learning.”
Nili T. - Real Estate Agent
“This Bus Tour Rocks!!! Your learn a lot from real world examples and walk through houses that Anthony is currently
working, plus others that they passed on and they explain why they were not good deals. Must attend !!!!!!!
James - Accountant
*must attend all 3 days

I
n this network 18,000 people have discovered
a new approach to achieving real wealth. What
are they doing differently?
SURF’SUP!AND SO
ARE RENTS!
Real Wealth
Network founders,
Rich and Kathy
Fettke, help others
create freedom
with high cashflow
rental properties.

K
athy Fettke and her husband, Rich, were
shocked when Rich was diagnosed with mela-
noma 13 years ago. What do you do when you
become keenly aware that you may not have
much time?
When it appears that mounting medical bills are inevi-
table? When you eagerly want to provide for your family?
When every moment counts?
Rich and Kathy embarked on an urgent mission to learn
from the most successful,put their income on autopilot, and
build real wealth, while freeing up as much time as possible
to really enjoy every moment of life.
They did it. As they began sharing the financial tools and
tactics they discovered, the Real Wealth Network was born.
THE PROOF IS IN THE DATA
Today the Real Wealth Network boasts:
• 12 years in business
• 487 educational webinars given
• 18,848 Real Wealth Network Members
• $132M in assets acquired
REAL WEALTH, BEYOND THE
BALANCE SHEET…
The Fettkes quickly learned from the self-made million-
aires they interviewed that passive income investment in
real estate was the way to go. They took massive action,
refinanced their home, and invested in 14 rental properties.
Yet, the financial surplus this created still fails to compare
with the real wealth that Kathy and Rich are experiencing
in their lives now. Kathy explains “we now know what it
is like to be able to take a month off and travel to Europe
with the family, attend our kid’s most important events,
and to hit the beach to go surfing whenever the waves are
good.” Now completely location independent the family is
frequently able to jet off to their favorite vacation spots in
“Malibu, California, Esterillos Oeste, Costa Rica, and the
Swiss Alps.”
It’s not just about gaining wealth, or fun in the sun, or
on the slopes either. Their new found wealth and freedom
is enabling Rich and Kathy to give more, share more, and
follow their passion for helping others more than ever
before too. Kathy tells Realty411 Magazine that her favorite
charities and causes to support today include; “Operation
Smile for saving children’s lives, Amore for building houses
in Mexico, and Mentors International for helping families
achieve sustainability.”
Still, there is no denying that Real Wealth Network
continues to be one of the most meaningful and impactful
missions Kathy and Rich invest their time, hearts and souls
Continued on pg. 98

life on your terms.
How do you achieve that goal?
Well, there are many paths that lead
to the same goal. Which path you
choose depends on where you are
today. Here’s how 4 different couples
found their way to cash-flow heaven:
KIM BOSLER
“About a year ago, I met with our
financial planner and she asked about
our goals. I said, “You know, we’ve
raised a large family in California. We
love to travel, and we love to do fun
things. I’d like to continue doing that,
but I’m just not quite sure how we can
once we stop working. In fact, we don’t
know if we’ll ever be able to retire!”
She sat down with all of our charts
and said, “My suggestion is investing
in annuities, and safe bonds.”
I looked at how much money our
financial advisor wanted upfront and
how little we’d actually receive in
return. And we wouldn’t receive it until
we were 90! This was not a workable
plan.
Three weeks later I was at the gym
jogging on the treadmill next to a
friend who’s done a lot of real estate
investing. I asked him how many
properties he had now and he said,
“Fourteen.”
I said, “Are you kidding? How have
you been so bullish in doing this? I
mean, aren’t you afraid that it might
not be the right timing or location or
price or whatever?”
“No, I’m really not,” he replied.
“I’ve been really successful at it with
the help of Real Wealth Network and
Kathy Fettke’s podcast, The Real
Wealth Show.”
When I got home, I went right to
the computer and joined Real Wealth
Network and the Real Wealth Inves-
tor Academy. I immediately started
learning so much and just loved it. I
felt like it was exactly what I’d been
waiting for.
Since then I’ve made lots of friends
through the network. I was introduced
to top-notch, investment property pro-
viders, builders, lenders, and property
managers - the very cream of the
crop. I have not met one person that I
just haven’t loved, and the numbers all
made sense.
The biggest problem was really
whom to choose because there are so
many good teams - really, really good
people and good prices.
We now have several properties
The Joy of Being
JOB OPTIONAL!
How 4 Couples Replaced their Income
through Passive Real Estate Investments
M
ost people think “flipping”
houses is the way to build
wealth in real estate. There
are plenty of TV shows
glorifying the process of fixing up old,
beat up homes and selling them for
big profits. But what if you don’t have
the time or desire to get your hands
dirty and work that hard?
While flipping can be profitable
when done right (and most people
don’t get it right their first few times),
it’s definitely not a passive investment.
Flipping requires your effort and work,
rather than letting your money work
for you.
Do you want to be job-optional? Add
up your monthly expenses, and imag-
ine how it would feel to have those ex-
penses covered each month passively
- without you having to trade your time
for dollars. You wouldn’t have to toil for
it. You could spend your time as you
wish with the people you love.
This is how I define Real Wealth –
having both the time and money to live
Own 13 properties in 2
states; $7,236 Monthly
Net Cashflow

and are still purchasing more. I can
sleep at night now knowing that we
have done our due diligence.
My husband and I feel really good
about the properties that we’ve pur-
chased and our financial future.”
WAYNE AND DANELLE BRICE
Wayne: I retired from the Navy after
20 years. When I received my retire-
ment check, I learned that if I died,
my wife wouldn’t get access to those
funds! I literally couldn’t sleep at night
knowing this.
We got busy and searched on-line
for solutions, and my wife discovered
Real Wealth Network. After doing
some due diligence, we went to some
of their events. We met the property
providers and it all looked good, so we
purchased some of the rentals.
Danelle: We followed the plan we
developed with their investment coun-
selors, and sure enough, I was able
to accelerate the growth of my own
retirement. In fact, a month ago I was
actually able to retire before Wayne!
This has freed up my time so that
now I can focus on everything that’s
important to us.
Wayne: The amount of hours I’ve
spent listening to information has been
like getting a college education. Just
recently we attended Real Wealth Net-
work’s asset protection seminar.
There were many experienced in-
vestors in the room, and I could tell by
their questions that they were learning
things they hadn’t known before - new,
cutting edge information. They were
taking lots of notes!
Life is messy, right? Stuff happens
that you don’t expect, but every time,
without exception, the property man-
ager has done what has been actually
to our benefit. Sure, it’s our capital that
we’re putting down, but we’re getting
more back than we’re giving.
Danelle: If we went and did this on
our own, we’d have to make a lot of
mistakes, and that would have cost us
our cash flow.

PAUL AND CHERYL CHOATE
Paul: We run an appliance repair busi-
ness, and it makes us a living but no
retirement. So I thought, “I’ve got to get
some money saved. I can’t rely on my
kids putting me up.” I started looking
for investment groups. I had done some
investing on my own and made some
money and lost some money. So I
made myself a promise. I wasn’t going
to just buy the first thing I saw. I was
going to do my homework.
I came across Real Wealth Network
and discovered it was just what I was
looking for. Their motto is “No Back of
the Room Bootcamp Seminars!”
They want people investing in real
estate, not spending money on expen-
sive, outdated programs. They make
their education very affordable – yet
the quality is far better than those
$20,000 bootcamps!
During our strategy session with one
of their investment counselors, we took
a look at the performance of our beach
house in North Carolina. We loved it
but we were losing about $1,200 a
month. We decided to sell that home
– even at a loss - at the worst possible
time, but we still ended up with a chunk
of money - about a $100,000.
That money helped us buy four
homes in Ohio. It went so well that we
bought two more the next year.
Cheryl: One of the things about Real
Wealth Network is that they actually do
the research on companies that they
bring in.
For me, the key thing was property
management. That was key.
Paul: We learned to use all the money
we were making and put it towards
paying off that first home loan. And
we actually paid off that house in two
years! Ohio may not be sexy, but the
cash flow is!
Own 16 properties in 2 states;
$8,700 Monthly Net Cashflow

R
ich and Kathy Fettke, Co-Founders of Real
Wealth Network, love to teach others how to ac-
quire cash machines that pay double digit returns
for life. They show their members how to tap into IRA’s,
401k’s, private money, 20+ conventional loans and
1031 exchanges to build impressive cash flowing real
estate portfolios.
There are unlimited ways to reach financial goals.
“People just need the right education, information and
team,” explains Kathy Fettke. Here are two ways you
can learn more about wealth-building strategies:
1. Fettke’s book, “Retire Rich with Rentals, How to En-
joy on-Going Cash Flow from Real Estate so You Don’t
Have to Work Forev-
er,” can be purchased
on Amazon.com
2. Join Real Wealth
Network for free
and get access to
live events, weekly
educational webinars,
research on today’s
best performing U.S.
real estate markets, access to our list of the best turn-
key rental property companies and property managers
nationwide: www.RealWealthNetwork.com
>StrategiesfromRealWealthNetwork
If we keep paying off loans, we’ll
have 6 homes free & clear in 7 years
and can retire with the same lifestyle
we have right now.
CLAUDIA & JULIAN FRASER
Claudia: It’s been a lifesaver to find
Kathy and her team at Real Wealth
Network. Some say it’s all about loca-
tion, location, location, but Kathy says
it’s really about timing, timing, timing.
She keeps her finger on the pulse
and finds markets opening up before
anyone else does.
Julian: We had a house in San Fran-
cisco. It was a rental property, and
we knew we wanted to sell it, but we
would have had to pay hefty capital
gains tax.
If we deferred the taxes through
a 1031 exchange, we’d have to find
$1.5M in replacement property. We
had no idea how to do that! And there
was no way to get the returns we
wanted in California where we live.
We heard Kathy on the radio and
her message sounded too good to be
true, so we were cautious. We took
our time, and joined the Real Wealth
Investor Academy to learn. We
followed the entire whole program,
and learned a lot!
Claudia: We went out and looked
at properties with their teams in
three different states they recom-
mended. We loved what we saw,
so it was just paperwork after that.
We were able to sell that one
San Francisco property exchange
it tax-deferred into 20 properties.
We increased our income six-fold!
I know the old rule of thumb was
“You should live within 30 miles of
your rentals.” That’s not really nec-
essary any more, thanks
to modern technology.
I also didn’t want to
become a landlord so I
needed great property
management teams to
take care of all the main-
tenance.
They are great, and
we don’t do a thing. We
basically accept e-mails
and direct deposits in a
bank account. It can’t be
any easier than that!
Julian: We’ve tried to
tell our friends, but they
just can’t believe it’s that
easy.

Real Estate
LLCs
Precious
Metals
Promissory
Notes
Life
Settlements
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Mortgage Notes
Private Lending
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Trust Deeds
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Gems Metals
Tax Liens
Private Equity
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Private Debt
Road Map of
Alternative Assets
Natural Resource Alternative
Real Estate Alternative
Private Industry Alternative
Prohibited Investment

The goal of our turnkey process is to provide a reliable,
consistent, repeatable experience for each of our clients.
Each month we work with new clients to provide them with a
successful path to owning single-family rental homes, and we
work with existing clients continuing to build their portfolio. The
Memphis Invest team handles the details here on the ground to
ensure you have success as a real estate investor.
Your partnership with
Memphis Invest isn’t
just about your short
term financial success,
it’s about your long
term legacy.
Memphis • Dallas • Houston
Call us today! 877-371-2625
Your financial future
is already built.
All you have to do
is claim it.
MemphisInvest.com

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Photograph from left to right: GREGOR WATSON, Chief Revenue Officer; DARREN THOMPSON, Chief Financial Officer;
PAUL BEHM, Chief Information Officer; JASON HOGG, Chief Executive Officer; MATT MALANGA, Chief Marketing
Officer; KATHARINE BRIGGS, Chief Operating Officer; JOHN BEACHAM, Chief Investment Officer
HereComestheNewGuard
B2RFinanceLeadsLendingInnovation
FALL ISSUE 2015

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transaction. 411 recommends readers seek
the advice of a trusted attorney, broker, CPA
and/or financial adviser before investing.
PRIVATE MONEY411
Cover: Photograph from Left to Right:
Gregor Watson, Chief Revenue Officer;
Darren Thompson, Chief Financial Officer;
Paul Behm, Chief Information Officer;
Jason Hogg, Chief Executive Officer; Matt
Malanga, Chief Marketing Officer;
Katharine Briggs, Chief Operating Officer;
John Beacham, Chief Investment Officer
Below: Mingle with hundreds of active inves-
tors around the nation! Join us to celebrate our
new issue. Private Money411 will be hosting
industry gatherings with a focus on finance.
For more information, see page 35.
Photo left: Rebecca Rice with
Rebecca Rice & Associates, pg. 32
CONTENTS

Realty411Guide.com PAGE 26 • 2016 Private Money411
TURNINGDISTRESS
IntoSuccess!
Continued on pg. 51
The New Book for
Wealth Building
Breakthroughs
and Enhancing
Income
Investments.
F
uquan Bilal’s
new ground-
breaking book
‘Turning
Distress into Success’
reveals the wealth build-
ing and passive income
generation secrets of
some of the nation’s leading fund managers, and how
individual investors can supercharge their investment
performance with mortgage notes.
‘Turning Distress into Success’ launched in November
2015, with fresh, actionable, transparent insights into
how the truly smart money investors and financiers enjoy
the best gains in the real estate and mortgage industry,
while squashing risk. The book details how to make more
money, while doing good, by disrupting the system, and
becoming the bank.
Beyond a manual for note investors to uncover better
deals and scale their enterprises, this work peels back the
current to the inner workings of the industry, and how all
investors can negotiate better value investments, leverage
more capital, and enjoy more of the rewards they have
been seeking, without selling out their own values.
WHAT’S INSIDE?
• Fuquan Bilal’s personal story of the leap from real
estate investor to lien-lord
• The ‘Banks’ M.O.’
• Hacking the money to scale investments >

THE LEADERS OF FINANCE
With offices nationwide, B2R
Finance is a financial tech-
nology company founded to
address the unique needs and
financial goals of single-family
rental property investors. The
company offers a full suite of
lending solutions designed for
investors at all stages of port-
folio growth. Current products
include fix and flip financing,
bridge to term loans, portfolio
rental loans for refinancing,
the Entrepreneurial Lending
Program and the Institutional
Lending Program.

the New Guard
B2R Finance Leads Lending Innovation
What The B2R Finance Lending
Lab Is Developing Now…
W
hat is the world’s most innovative real
estate financing laboratory cooking up
next?
B2R Finance CEO Jason Hogg has
been shaking things up at one of the most exciting
lenders we’ve seen emerge in the new real estate
landscape. This is the innovative mortgage lender
that brought us new residential buy to rent financ-
ing, the industry’s first multi-borrower securitization
and was established by funds managed by Black-
stone Tactical Opportunities. Jason shares what
new loan products and tools are being rolled out,
and how investors can stay ahead of the curve.
THE WAYNE GRETZKY OF
MORTGAGE LENDING
“A good hockey player plays where the puck is. A
great hockey player plays where the puck is going
to be.” – Wayne Gretzky
Gretzky developed a formidable reputation on the
ice, by staying ahead of the game. B2R Finance
appears to not only wield the physique of a legend-
ary hockey player, but is driving the game with its
speed skates on, and hitting the puck into the fu-
ture.
The firm has already been disrupting the me-
chanics of the industry, and paving the way with
entrepreneurial lending products. But most don’t re-
alize how much new technology and creative prob-
lem solving is set to reshape real estate investment.
We got a peek inside the brain of the finance giant,
and the 411 on what’s next in an exclusive interview
with CEO Jason Hogg…
DWELL FINANCE: THE NEW DEAL
FOR INVESTORS
B2R Finance just acquired Dwell Finance. The
big move helps B2R dig deeper with an expanding
local market presence and adds new investment
loan products. Jason Hogg says the Dwell Finance
acquisition is significant on three fronts:
1. New Loan Products for Investors
Jason says it “augments the suite of products for
customers with fix and flip, and bridge to term lend-
ing programs.” This includes a single credit line that
facilitates rehabbing and reselling houses, acquiring
multiple vacant properties for conversion to rentals,
and portfolio refinance loans for buy and hold inves-
tors.
2. Integrating the Industry
Not only does the Dwell move help connect the
industry, but few realize that it adds to an expand-
ing national footprint with physical regional offices
to optimize service for borrowers. This facilitates
“business relationships,” including face-to-face time,
which Hogg says is “paramount” to the organization
and developing new products.
3. New Technology Platform
Dwell provides a simplified front end portal online.
This delivers on what the CEO describes as “fast-
er, low friction lending.” It’s not just about beauty in
web design either. Behind the curtain is a unified
COVER
BY TIM HOUGHTEN

platform which enhances the lender–
investor relationship. It even acts as
a mobile dashboard for investors to
interact and upload documents on the
go, as well as monitoring their portfo-
lio performance from anywhere in the
world. This helps further build the rela-
tionship by tapping big and small data
to provide users better solutions. This
isn’t your creepy Facebook stalking-
style relationship. It is about getting
to know where you want to go, where
your portfolio is in relation to that, the
DNA of your local market, and how to
connect the dots with great financing.
THE BIG IDEA
While some newer real estate in-
vestors were griping about access to
inventory as we turned the corner into
2015, B2R Finance’s Dwell acquisition
and investments in product develop-
ment suggest bullishness on the US
market’s future. We’ve already seen
a significant spike in foreclosure ac-
tivity and distressed properties being
leaked onto the market in early 2015.
Jason Hogg told Realty411 that the
firm sees a “huge growth opportunity,
worth billions of dollars.” In fact, Hogg
says the firm has seen demand for in-
vestment property loans nearly double
as of May 2015.
B2R Finance’s CEO describes the
opportunity as being “ideal for profes-
sionals like doctors, lawyers, dentists,
and professors looking to achieve
higher yields.” He points out the com-
bination of yield and income from
an appreciating asset as a far better
option for these intelligent individual
investors, in addition to professional
investors and investment firms. He
goes on to highlight how the newly
upgraded B2R-Dwell tool chest auto-
mates management to make investing
“radically easier.”
THE LENDING LAB
So where does B2R come up with
these innovative products, and what’s
next?
A peek inside the mortgage lend-
er’s offices reveals that this company
is nothing like the stuffy, dark bankers’
corner offices of the past. This is more
like Airbnb and Uber meets mortgage
lending. In addition to the Dwell Fi-
nance acquisition, Jason has headed
up a three-pronged approach to driving
entrepreneurship in mortgage lending
in-house.
This includes:
1. Active listening
2. The Idea Incubator
3. The Lending Lab
There are few, if any other firms where
you’ll catch executives, including the
CEO, active in the trenches alongside
their frontline team members. Hogg
says he loves listening in to the origi-
nation team in action in the Charlotte
office, as well as sitting next to the due
diligence staff clearing loans for fund-
ing. It is this connection to the daily me-
chanical challenges and client that will
certainly help B2R retain an edge.
The Idea Incubator is where team
members get to pose their own sug-
gestions for improving operations and
delivering better solutions. The Lend-
ing Lab is where Hogg has assem-
bled a team of experts from a variety
of other industries to pioneer new loan
programs for investors. It is here that
dynamic “agile development” happens
and new pilot programs are launched
for live testing with clients.
The CEO says that one of the new
game changing product tools coming
out of this lab is harnessing the power
of predicative analytics, and algorith-
mic approvals. By summer 2015, this
is expected to be revealed in the form
of ‘Instant Pre-Qualification’ using just
seven fields of information.
The result is to be an even more effi-
A peek inside the mortgage lender’s offices reveals that this company
is nothing like the stuffy, dark bankers’ corner offices of the past.
This is more like Airbnb and Uber meets mortgage lending.
Continued on pg. 51
Here Comes the New Guard, pg. 9

C
haritable remainder
unitrusts are frequently
used as a real estate exit
strategy. This popular
technique can provide incredible
tax savings and help you maximize
your lifetime income.
Here is a simple example in which
the property owners increase their
lifetime income from an estimated
$718,300 to $1,237,947 (72%) using
the leverage of a charitable remain-
der unitrust:
Malcolm and Margaret, age 72
and 68, own apartment units worth
$1,000,000 that are fully depreciated
with a cost basis of $100,000. They
are in a 43% tax bracket (combined
federal and state) and a 33% capital
gain tax bracket (combined federal
and state). Their joint life expectancy
is 22 years. They establish a payout
percentage of 5% for their unitrust. To
be ultra conservative, we will assume
that the trust only earns 5%.
As you read in our example above,
a charitable
remainder trust
funded with
real estate can
be an excellent
exit strategy
for property
owners who
are looking to
cash in, want to
bypass capital
gains taxes,
and desire to
maximize their
lifetime income.
Compared
to the most
common rec-
ommendation
of just selling
the property and paying the taxes,
this alternative can provide enormous
benefits!
Here’s how it works. Once the char-
itable remainder trust is established,
it receives title to the appreciated real
estate. Typically the trust then sells
the property and invests the sales
proceeds in a diversified portfolio that
will generate income for you and/or
other beneficiaries you select. Upon
termination of the trust, any remaining
assets must pass to a qualified charity
or charities. Charitable trusts can be
set up for a life, lives, and/or a term
of years, not to exceed 20. Several
generations of heirs may be included
as beneficiaries.
Once the trust sells the asset tax
free, the entire proceeds (less costs
of sale) are available to re-invest. If a
charitable remainder trust is created
during your lifetime (intervivos), you
will also receive a charitable income
tax deduction equal to the present
value of the charity’s remainder
interest in the trust - a major ben-
efit to lower your federal and state
income tax liabilities. This is usually a
substantial amount and is tied to the
value of the property, the estimated
life expectancies of the beneficiaries,
the payout rate of the trust and the
federal mid-term rate when the trust
is established. If the trust is created
as part of your estate plan (testamen-
tary), it will provide estate tax savings
for taxable estates.
You select a payout percentage
when establishing the trust. A uni-
trust payout percentage must comply
with three basic rules. The trust must
pay a minimum of 5%, cannot exceed
a maximum of 50%, and the payout
percent must produce a charitable
deduction of 10% or greater.
Charitable remainder trusts are
irrevocable. This means that once the
trust is established and funded, the
property cannot be returned to you.
The trust must obtain a Tax ID num-
ber and file annual tax returns. The
Which Would You Prefer:
LIFETIME INCOME of
$1,237,947 or $718,300?
Real Estate Exit Strategies
MADE SIMPLE
PHILANTHROPY
Continued on pg. 92
F
or many individuals, real estate rep-
resents a significant portion of their net
worth. Yet quite often it has dramati-
cally appreciated in value. Consider these
potential benefits of using a charitable
remainder unitrust as your real estate exit
strategy.
• Minimize or eliminate capital gains tax
• Increase income
• Lower income taxes
• Re-position illiquid asset
• Create income stream for heirs
• Establish a meaningful legacy for charity
By Cynthia Steiger, CSPG
San Diego Rescue Mission
Photocopyright:AlexKalina

By Sandy Fox
O
ur 5th Annual Los Angeles Real Estate In-
vestors’ Expo will feature some remarkable
experts. On that day, we will spotlight Rebec-
ca Rice and Jim Beam, industry leaders in a
little-known financial area.
They’ve perfected a way to turn a unique and specific
kind of life insurance policy into a reservoir of money you
can use to simplify your real estate investing. More than
that, the strategy actually compounds and increases the
ROI on your investments.
A Financial Vehicle That
Compounds Your Investments
When you hear from Rice and Beam you’ll find a finan-
cial vehicle beyond what most investors use. Typically
investors turn to cash, mortgages, private lending or a
combination of the above. Each has its own costs and
limitations.
Beam, who started as a real estate investor in Florida
said, “We worked awfully hard to make our money. And it
seemed like someone was always standing there at the
end of the day with their hand out to take our money. Clos-
ing costs, fees, taxes, interest rates.” He felt there had to
be a better way.
His search led him to Rice and her specially constructed
policies. He learned a way that he could:
• Keep his money safe and private
• Borrow money at low cost or net-zero cost
• Avoid credit checks and bank approval for loans
• Gain tax-free retirement income
• Loan his business money and save on taxes
• Pay off debt faster
• Create an emergency fund that earned interest
four times higher than most banks pay
He now helps other real estate investors learn how to
take advantage of this system. This type of insurance poli-
Meet Your Creative
Financing Experts:
Learn more with Rebecca Rice’s book, “Multi-
ply Your Wealth: Essential Secrets for Financial
Freedom.” Contact her directly at (501) 868-3434
or www.rebeccarice.net - You can connect with
Jim Beam at (239) 591-3781 or email:
jbeam@lifewayadvisors.com
Rebecca Rice & Jim Beam
Continued on pg. 40

Attracting Private Money
DISCLOSING RISK
Attracting Private Money
DISCLOSING RISK
risk-factor disclosures in their presentations because they are
afraid that they will scare away their prospective private lend-
ers. They worry that if their potential lender understood the
risks, then that person would decide not to invest with them.
However, just sitting back and hoping that everything
goes perfectly is not a strong strategy for success. The truth is
that many real estate entrepreneurs have ended up in lawsuits
because they failed to provide even the most basic disclosure
of potential risks.
You should strongly consider engaging a real estate
attorney to advise you if you plan to raise capital from private
individuals. I am not an attorney, and this does not constitute
legal advice. That being said, I have attended numerous real
estate conferences and seminars on the topic of private capital,
and I have seen many examples of risk disclosures ranging
from simple ones to explanations that were long and compli-
cated. As an example, for my mortgage pool fund, I provide
prospective investors with a memorandum that includes over
twenty pages of risk-factor disclosures.
The fact is that there are basic risks that you should be dis-
closing to your investors. Those disclosures should be includ-
ed in any write-up you create for the purpose of raising capital
from private individuals.
You don’t disclose these risks to your potential investor to
scare them away. You disclose them so that the investor can
make an informed decision. Risk factors you might discuss
An excerpt from “The Insider’s Guide to Attracting Private
Money: Five Secrets to Fast, Unlimited Capital So You Can
Save Money, Buy More Real Estate, & Build Wealth,” by
Mark Hanf, President of Pacific Private Money.
W
hen you seek to attract capital from private
investors, you need to disclose the risk in-
volved in your proposed project. The reasons
you need to do so are several, but one of
them is that you are asking people to lend you a portion of
their life savings, and they are entitled to know what hap-
pens to that money in the event that you exit the picture.
The fifth question we answer in The Five Steps to Mon-
ey Method™, “What happens if you disappear?” is asking
much more than just “What happens if you get hit by a
bus?” Disclosing risk is a very important yet often over-
looked or ignored piece of the private lending equation.
That is, risk disclosure is often overlooked or ignored
by borrowers. Your prospective private lender, on the other
hand, is absolutely thinking about the risks of investing
with you whether you bring them up or not. And what that
prospective lender wants to hear from you is, “What are the
risks, and what are your plans if things go wrong?”
You can answer this question by showing your lender
how you are structuring your company and what measures
you are taking to protect that individual’s investment. For
example, who on your team is positioned to take over in the
event that something happens to you? If you can address
this question and others like it, you will show your potential
lender that you have thought this through, and that you take
the protection of his or her capital investment very seriously.
The level of detail that you go into when disclosing
risk is up to you (with sound advice from your real estate
attorney). But the most basic risk disclosure essentially boils
down to this message:
YOUR INVESTOR COULD LOSE SOME OR
ALL OF HIS OR HER MONEY.
That is why disclosing risk is such an important factor
when you create your investment opportunity presentation.
Addressing and disclosing risks in your presentation will
make you look professional and thorough, just as the other
important components that we have discussed so far in this
book have done.
Many real estate investors don’t want to include
Continued on pg. 44

The Source for Real Estate Finance from Realty411guide.com
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Our NEW Private Money411 Issue will be celebrated
with complimentary finance conferences on both
coasts. Be sure to reserve your advertising space in
our new supplement or sponsor our next conference.
For information, contact Realty411 at 805.693.1497

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Two of the Best Tactical
Minds in Investment Property
Financing Team Up
The new Bighaus-Chapman
mortgage alliance offers a
new capital partner for real
estate investors navigating
financial purgatory.
The new merger brings together
two of the best tactical and stra-
tegic minds in the mortgage busi-
ness, with the backing of one of
the largest and fastest-growing
mortgage lenders in the U.S. And
intelligent investors are finding an
interesting match in leveraging the
business partnership that packs a
ton of value.
YOUR GUIDES THROUGH
FINANCIAL PURGATORY
Steve Bighaus, Security National
Mortgage Company Branch Man-
ager, says that the new underwrit-
ing inquisition is here to stay. And
it could get worse!
Whether it is new appraisal sys-
tems that have been created to
generate additional revenues for
other providers, or demanding a
written, verified, and quality con-
trolled ‘confession’ of your life’s
deeds, there is a new status quo in
underwriting. While in some ways
it has become easier to qualify for
a loan on the surface, getting from
loan application to closing may
take an army of 300 Spartans guid-
ing you home with sharp spears and
oversized shields. So while CoreLogic
reports there are still some almost 15
million underwater and ‘under-equi-
tied’ homes in America, in addition to
a fresh batch of foreclosures in 2015,
real estate investors still need a
fearless and wise guide to un-
lock the potential out there, and
optimize financial leverage.
Continued on pg. 39
STEVE BIGHAUS (IN WHITE)
AND AARON CHAPMAN
(IN BLACK) EXPLAIN THEIR
VIEWS ON FINANCE.
By Tim Houghten

Steve Bighaus has over 24 years experience in the mortgage industry. He maintains a
focus on servicing the real-estate investor by offering aggressive financing options and
resources for buyers interested in purchasing or refinancing their investment property.
By concentrating on investment properties and the financing that comes with them,
Steve is recognized nationally as an industry expert. The knowledge that he has enables
him to find financing for people even when they have had difficulty elsewhere.
This is not a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation,
sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting
guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and
market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in
payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant. Security
National Mortgage Co. is an Equal Opportunity Lender.
NMLS#: 112825
Contact Steve Bighaus
Senior Loan Officer
206.930.1801
steve.bighaus@snmc.com
Attention Investors:
Pre-Qualify Today!
It’s about time we show you
A REAL HERO
Close your loan in as little as 30 days!
NMLS# 3116

THIS IS WHERE STEVE BIGHAUS AND
AARON CHAPMAN COME IN...
Merging two SNMC branches together these mort-
gage masters offer a stark contrast, that stand out
on the investment property financing landscape.
They are instantly recognizable, have a very unique
style, and yet perhaps most notable is the fact that
they have been in the mortgage business for longer
than anyone else you’ll probably ever meet. They
have both been in the financial industry since well
before 2000, which gives them a veritably unrivalled
edge in experience in an industry where it is hard to
meet anyone that started before 2008. But it is often
their mental agility, and refreshing commitment as
long-term business partners to their investor clients
that make them highly-prized assets.
THE MINDS BEHIND THE MONEY
To not just survive this long in the mortgage indus-
try, but thrive and grow, and have investor clients
coming back for dozens of transactions as they grow
their income property portfolios, requires a mind
that plays on a whole other level than the thousands
that have fallen into the abyss.
In fact; there is no question that more real estate
investors would have survived and thrived in the last
couple of decades if they had paid more attention
to how those they chose to do business with kept
themselves sharp. Steve Bighaus, who runs opera-
tions in Washington state, says he is religious about
hitting the gym, as well expanding his love of mu-
sic from the drums to learning the vibraphone, and
experimenting with jazz improvisation. Aaron Chap-
man who heads up the Mesa, Ariz., office survived a
crushing motorcycle accident in 2008, yet continues
to volunteer with the local Sherriff’s Office Volunteer
rescue unit. His specialties include technical-high
angle, off-road rescue & extrication, as well as be-
ing a member of their elite six-man helicopter rappel
team.
These are battle-hardened warrior financiers and
tacticians that know how to help investors strategize
to stay ahead of the game, assess and successfully
navigate calculated risks, and win the long race.
THE VALUE OF THESE CAPITAL PARTNERS
The Bighaus-Chapman mortgage team offers intel-
ligent property investors a specialized team to aid in
optimizing and growing their portfolios, to hit their
individual goals, no matter whether that is having un-
limited money to make it rain, or fulfilling philanthropic
aspirations.
Aaron explains: “The business is evolving to need spe-
cialists. If one hits their head and has complications as
a result, they don’t have the family general practitioner
perform brain surgery in his office. Their situation re-
quires a specialist. Not just any specialist, but they want
the best. Investment lending is no different. Why go
to a general lender who offers any kind of program
available when there are specialists in what they need?”
Steve Bighaus describes the mortgage company coa-
lition as a holistic service that aids investors in getting
from where they are, to where they want to go, and
incorporating all of their real estate financing from
residences to second homes, to rental properties, and
even commercial properties.
Specifically this financial duo act almost as business
partners or your CFO, only without having to take on
the burden of a giant salary or having to give up a share
of your investment portfolio. They provide assistance
in financial tactics, the heavy lifting and manpower to
get it done, and the capital. Investors just pay the inter-
est and borrowing costs.
Discover more about this dynamic team and the in-
vestment property loans offered, visit online at http://
BighausChapman.com.
Two of the Best Tactical Minds, pg. 37

cy is not new. It’s has been around for centuries and
is tried and tested. Currently banks, businesses, and
high net worth individuals use it to preserve and grow
their money. But Rice and Beam offer a unique struc-
ture that makes it a powerful tool for even the small
real estate investor.
SHE BROKE THE GLASS CEILING
Rice discovered Nelson Nash’s book, “Becoming
Your Own Banker,” over 25 years ago. She recog-
nized the revolutionary technique and became a
protégé of Nash, building on his philosophy with con-
crete action plans.
It became her passion to help as many people
as possible. “I help people see how money really
works in the economy. It’s often not the way you think
it does,” Rice says. “I love to show my clients how to
reduce their debt in an extremely short period of time
— faster than they ever thought possible.”
Through the years she’s structured Living Bene-
fit policies for people from 21 to 93 years old. “Each
is unique,” Rice says. “I’ve helped people profit who
could only start with $100 a month. And I’ve worked
with people who wanted to contribute a million dollars
a year. Whatever your income or investment goals,
you can use this to take control of your money and
grow it faster and safer.”
Rice’s passion and dedication to her clients made
her extremely successful. She became the first wom-
an to be the top-performing agent at Mutual Trust.
Then she went on to break the glass ceiling at Mas-
sachusetts Mutual as the first woman in its 170-year
history to become the top life producer. She is also
one of only three policy agents endorsed by the Palm
Meet Your Creative Financing Experts, pg. 32
Beach Letter, a financial newsletter.
Because she has written thousands of policies—
and uses many of them herself — she knows every
nuance of how to structure it to benefit you.
YOU NEED AN EXPERT
On the owner’s side, a policy looks deceptive-
ly simple and is easy to use. But the creative side
takes an act of genius to give you all the benefits and
advantages necessary to use it effectively in your
business and investing.
Rice always learns what her client’s goals are.
Then she tailors a Living Benefits policy specifically
to meet those goals. Some want a pool of money
to run their business. Others need free access to
money for real estate investing or hard money lend-
ing. And some have their top goal to safeguard their
wealth and transfer it to the next generation.
“It’s possible to accomplish all those goals with-
out invading lifestyle money,” Rice says. Lifestyle
money is what you live on after paying your bills
and Uncle Sam. Rice’s brilliance is that she frees up
money for you to invest from other sources. Often it’s
from the debt payments you are already making.
PUTTING YOUR
POLICY TO WORK
FOR YOU
“The simplest way to use your Living Benefits
policy is with hard money lending,” Beam says.
“There are hundreds and hundreds of folks out there
who are in need of hard money lending.” Beam
works through organizations that send out leads for
people who want to borrow the amount of money you
have to invest — whether that’s $10,000 or $150,000
or more.
And the Living Benefits policy creates a vehicle
to amplify the investment. “You borrow against your
policy at 5% and you put it out on the street to go to
work at 10% or 12% plus points,” Beam says. “But
you’re still earning 5% on those same dollars within
in your policy! Wow, what a platform to work from!”
Beam’s strength is that he can guide real estate
investors in the best ways to take advantage of this
platform for their specific goals.
There are a number of ways to take advantage
of the policy. One of their clients buys HUD houses to
rehab and rent.
Although her Living Benefits policy is only a few
years old, she’s been able to use money from her
policy to cut costs and increase returns.
• Used for a down payment for a conventional loan

and saved the cost of mortgage insurance
• Used for repair costs on the house and avoided the
expense and effort of a construction loan
• Kept an “emergency fund” that earns 5% or so on
that money instead of a bank’s pitiful near zero rate
• Used a regional bank for a 5 year balloon loan with
much lower loan origination costs and interest rates.
She can do that because this system pays off the
bank loan in just a few years—well before the balloon
kicks in and interest rates rise
The client says, “The best part is that I end up with
a house AND all the money that would have gone to
mortgage payments!”
Can This Work For You?
You can learn more about investing in real es-
tate using a Living Benefits policy when you attend
national Realty411 events where Rice and Beam will
be featured speakers. Plus, look for future issues with
articles explaining in more depth how to increase your
real estate returns using a Living Benefit policy.
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Attracting Private Money, Disclosing Risk, pg. 33
PAGE 44 • 2016 Private Money411
could include things such as:
• changes in the real estate market
• cash flow problems
• conflicts of interest
• an unproven real estate investing
company (if you’ve never done a deal
before)
CHANGES IN THE REAL
ESTATE MARKET
Your opportunity presentation is
based on a set of assumptions. Those
assumptions include things like mar-
ket demand, potential market appreci-
ation, and an estimate of the increase
in value as a result of your planned
improvements.
However, the real estate market is
subject to cycles that can affect the
marketability, pricing, and days-on-
market estimate of your project. Real
estate can and does decline in value as
a result of certain market forces. Ris-
ing interest rates, job growth, jobless-
ness, new inventory, and other factors
can contribute to a drop in demand
and prices for real estate in a given
market. Your prediction of how well
your proposed project will do should
be based on a careful review of local
market conditions, but you cannot
guarantee that the results you predict
will be realized.
CASH FLOW PROBLEMS
You have proposed a budget and a
spreadsheet to your lender that shows
your sources and uses of funds. But
what if you come across significant
and unexpected cost increases? Do
you have the ability to cover them?
Typically, your money partner will not
be under any obligation to fund addi-
tional costs beyond the agreed-upon
budget unless you bring this up in
your written agreement beforehand. If
the project stops as a result of running
out of cash, you could be faced with
mounting costs and declining profits
as time goes on.
CONFLICTS OF INTEREST
Are you planning to dedicate 100 per-
cent of your time to this one project
with your prospective money partner?
Or do you have other projects or work
obligations that might be construed as
“conflicts of interest”? You can make
a statement in your presentation that
gives your lender notice that, while
you are dedicated to the success of
this endeavor, you are nonetheless
free to pursue other business ventures
or obligations, as well.
UNPROVEN REAL ESTATE
INVESTING COMPANY
If you are new to real estate investing
or if you have formed a new compa-
ny to pursue real estate investments,
you may not have a track record of
success. In that case, your business
model is unproven.
Changes in the market, cash flow
problems, conflicts of interest, and an
unproven real estate company are just
a few examples of the risks that you
may want to disclose to your lender.
There are many others that you can
identify and include in your propos-
al to give your investor a complete
picture of what the project will entail.
A qualified real estate attorney is an
integral component to your team and
should be consulted to assist you in
drafting an appropriate disclosure
statement.
I have been telling you to always
put the best interests of your private
lender first, but the fact of the matter
is that a primary purpose of your dis-
closure statement is to protect you in
case your lender chooses to sue you.
If you can demonstrate that you dis-
closed material risks to your private
lender before that individual invested
with you, should things not work out
as planned, you will be much better
protected in a court of law.
Excerpted from the book “The In-
sider’s Guide to Attracting Private
Money” by Mark Hanf, available at
www.AttractingPrivateMoneyBook.
com. Mark is president of Pacific Pri-
vate Money Inc., a California-based
hard money lender who has raised
over $200 million in private capital
since 2009.

G
etting started as a new
Real Estate Investor or
to bring your existing
business to the next
level of success will
generally require investment capital.
More and more investors are taking
advantage of using private lenders
to achieve their business goals. The
advantages of using a Private Lender
over conventional lenders or Hard
Money lenders can be summarized as
follows:
• You may be able to agree to terms
more suitable to you
• You may be able to finance 100%
of the project plus expenses (many tra-
ditional banks and lenders will require
you to have some “skin in the game”)
• Less underwriting scrutiny of you
and the particular project
• Quicker response
• Avoid the oversight that many
lenders are now putting in place
during the life cycle of the project
• Private lenders may not require
you to have any documented experi-
ence
Finding Your
Private Lenders
Once you have
decided that using
a private lender
is the right and
perhaps the only
possible direction
for you to take, it
is now time to ex-
plore your oppor-
tunities of locating
people who may
be interested in
funding your projects. Generally, a great
place to start looking is among your
personal and business circle of
influence. This may include the
following:
• Family
• Friends
• Co-workers
• Acquaintances
• Local real estate groups
I do get some push-back
from people when I suggest
that they approach family and
friends for investment capi-
tal because some feel uneasy
asking them for money and the
possible implications if things
don’t work out exactly to plan. Just keep
this in mind, you are asking them to
participate in a business opportunity, not
a hand out. Furthermore, many of these
people are already taking some form of
investment risk; so why not in you?
Keep it Legal and Get it
Down on Paper
Just because using a private lender
may be a simpler and less formal pro-
cess than what you would
typically experience with
either a Hard Money
lender or conventional
lender, this does not
mean you will forgo all
of the required docu-
ments and due diligence
that will protect both you
and your private lenders.
Make sure to discuss the
terms and conditions of
the private loan with your
attorney and have them
prepare all of the necessary documents.
It is always advisable to encourage your
lender to also have their attorney review
the documents.
Positioning Yourself as a
Solid Borrower
Even if you personally know the
people who will be providing the capital
to fund your project, this does not take
you off the hook from properly prepar-
ing yourself as a reputable borrower.
There are some characteristics that your
lenders will be expecting from you and
include the following:
Knowledge of the Business
Even as a new investor, it will be
critical for you to have the basic skill set
in order to effectively analyze opportu-
nities that may come your way. In the
excitement of the hunt for your project,
you will need to know when it is time to
move forward or pass on an opportuni-
ty.
In fact, as part of your discussions
with your lender, you should illus-
trate why the project is a solid deal by
sharing the assumptions and results you
The Benefits of Using
a Private Lender
By Carl Schiovone

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pletely achieved, you should elaborate
on the root cause. Evaluating lessons
learned can be a great way to mitigating
future errors on the next project.
Have an Exit
Strategy
As part of your overall project or
business plan, you may need to consid-
er your exit strategy from the private
lender in advance of moving forward
with them. There are generally a
few options to consider when
exiting private money that
include:
• Selling the property
upon completion of a ren-
ovation, the lender will
be paid from the proceeds
(this is common with a
Rehab and Flip project)
• Refinance the property
with a cash out conventional
mortgage (this is very common on
a Hold to Rent property)
• Repaying the loan from the sale of
other assets or investment sources
In conclusion, building a solid base
of reliable private lenders will help set
the stage for you to respond very quick-
ly to the opportunities presented, This
can clearly be the path for you to scale
the business as large as you want! Once
the people in your network actually see
that you have the bandwidth to move
forward they will bring you even more
opportunities.
Carl Schiovone is a Performance Coach
with over 33 years of experience and is
President of Carl Schiovone & Associ-
ates Real Estate Coaching Inc. In addi-
tion Carl is the President of East Coast
Real Estate Investors Association. For
information, visit http://EastCoastREIA.
net or http://CarlSchiovone.com
have made. In addition, you should
pro-actively identify the barriers and
risks you may face and how you plan
on mitigating them.
Remember, by identifying this
upfront you will go a long way. Keep
in mind that most lenders (or their at-
torney) will inquire about risks anyway,
and it looks much better coming from
you without being asked. As part of
your Business Plan, you should
have identified all skill set
shortfalls you may have
and include a specific
action plan on over-
coming the deficien-
cy. If you are a new
investor with no or
limited experience,
it is advisable to have
someone who can
shadow your decisions
and path and guide you
along the way.
As a Performance Coach, all
too often I see new investors jumping
into their first project without the proper
skill foundation and many experience
some challenges that could have been
prevented.
Transparency
If there is one thing that can ruin any
business relationship is holding back in-
formation that is critical to your lender.
With real estate investing, things may
not always go to plan.
However, what is important here is
how and when you communicate when
there are challenges. Always share
information that affects your lenders
as soon as possible and during that
discussion, communicate possible ways
to get back on track and avoid a future
re-occurrence.
Credibility
In order for your business to grow and
continue to have your lenders coming
back for more opportunities, it will be
critical to leverage off of the success of
prior projects. Once they see what you
can do and have performed as planned,
you will find that the people around you
will be literally throwing more money
your way. In addition, they will be ask
ing if they can bring their family and
friends along as well. Talk about free
marketing, it doesn’t get any better than
that!
I can’t tell you how many times
I have seen this play out with my
Students. Properly documenting your
past performance in your Credibility
Report will go a long way in securing
new lenders. As a great way to demon-
strate your performance is to invite
your lenders and potential new lenders
to your projects both before you get
started with the project and after it is
completed.
During this time you can share with
them both the initial expectations and
how the final results compared. Just
think how powerful this can be. During
this exchange, if the specific perfor-
mance you were planning was not com-
I can’t tell you how many times I have seen this play out with
my students. Properly documenting your past performance in your
Credibility Report will go a long way in securing new lenders.
“
“

Colony American Finance Wants
to Jumpstart Your SFR Portfolio
Do you think that you might have missed the boat to
invest in single-family rental homes? The answer is
a resounding NO!
We all remember 2005-2007 when it seemed that
investors couldn’t make a mistake in the residential fix
and flip market.  Investors with little experience were
able to outbid the competition, slap some minor paint
and carpet improvements and then sell their properties
for incredible returns. But then the bubble burst and
many investors were left with homes that couldn’t be
sold or in some cases, even given away. They had two
choices: Give up the properties through foreclosure or
become a landlord.
RENTAL DEMAND
OUTPACES EXPECTATIONS
Statistics show that nearly 35% of Americans now
rent instead of own. Drill further into the statistics and
you’ll find that 35% of renters choose single-family
homes and 19% choose duplexes, triplexes or fourplex-
es. With these two categories encompassing 54% of
all rental choices, it makes perfect sense that investors
are looking to 1-4 unit properties instead of owning
larger multi-family apartment-style buildings; 1-4 unit
properties have a lower price point, the ownership risk
is spread out among multiple structures and the overall
expense ratio is lower. Renters in single family housing
tend to pay their own utilities, maintain the landscaping
themselves and have access to municipal water/sew-
er/garbage at a much lower rate than through private
service.
Rental demand is projected to change significantly
over the next ten years, primarily driven by the changing
nature of the household. Baby boomers are moving in
with their children or into senior housing and millennials
are favoring renting over owning because of its flexibil-
ity and lower commitment level. Being well versed in
the changing market is the key to having a profitable
portfolio.
Also noteworthy is that there are an estimated 14
million rental homes owned by non-institutional inves-
tors in the United States – most of which are owned free
and clear. Quick math: Using 14 million rental homes
at an average value of $100,000 each, that’s potential-
ly $1.4 trillion in new loans that can be originated and
re-invested into the market.
Colony American Finance has multiple financing op-
FINANCE
tions available so you can access your portfolio’s equity
and quickly put it to work to buy additional properties,
invest in your children’s education, or simply replenish
your cash position.
KNOWLEDGE IS POWER
The savviest investor will do three things: research,
research and more research. Mortgage brokers and
real estate brokers have invaluable information such
as market trends and vacancy rates as well as access
to properties that might not be listed for sale. But it’s
significantly more critical for investors to have access to
capital: Both liquid cash and innovative financing.
No longer is the SFR rental market monopolized by
private money loans with steep interest rates and fees
or the more traditional Fannie/Freddie product that caps
out at 5-10 properties. Colony American Finance pro-
vides non-recourse term loans for stabilized portfolios
and fix and flip lines of credit for acquisition funding.
FIX/FLIP LINES OF CREDIT
If you want to grow your portfolio or perhaps don’t yet
own a rental portfolio, a line of credit is definitely the
right choice. Colony American Finance offers two differ-
ent line of credit options depending on investor experi-
ence and short-term/long-term goals.
Our Entrepreneurial Line of Credit is a non-revolving,
declining line designed for the investor who does less
Continued on pg. 50
By Jennifer Goralski, Senior Vice President Originations

than 20 fix/flip projects per year and only within the 1-4
unit residential arena. Line amounts start at $500,000
and go upwards of $5,000,000. Borrowers have 12
months to utilize the proceeds and 12 months to pay
back each draw. This loan has no prepayment penal-
ties.
For the more active investor, our Institutional Line
of Credit offers additional flexibility as it allows for both
residential 1-4 unit properties and commercial prop-
erties up to 20 units. The Institutional Line of Credit
is also a revolving line, meaning you can access the
funds multiple times. Line amounts start at $3,000,000
and can go as high as $50,000,000. Borrowers have
12 months to access the proceeds and typically 9
months to repay each draw. This is a non-recourse
loan and has no prepayment penalties.
Also important to note is that you can utilize either
the Entrepreneurial or Institutional Line of Credit to
build your own personal rental portfolio. Once you
have completed the renovations on your fix/flip proper-
ties, you can look to refinance your holdings into one of
Colony American Finance’s term loans.
NON-RECOURSE TERM LOAN OPTIONS
If your SFR rental portfolio has five or more prop-
erties, Colony American Finance is your option for
attractive financing options. Our loans are underwritten
like a commercial loan, which means no more debt-to-
income ratios hurting you when qualifying. Rather, your
portfolio is underwritten on the assets and the cash
flow generated from those assets. Plus, because we
lend across the U.S., a single term loan can be made
on portfolios with holdings in multiple states.
Our rates are competitive with traditional FNMA
loans, are amortized over 30 years and can be fixed for
five or ten years. Our loan amounts start at $500,000
and can go up to $100 million – and almost all term
loans are available on a non-recourse basis. Important
too, is that borrowers can have multiple tranches of
loans to facilitate estate planning or property manage-
ment issues.
REGIONAL STRATEGIES
Auction.com recently released data that showed
investors are favoring buy-and-hold strategies over fix/
flip on a nationwide basis, but that investor intent varies
between online/offline investors, regions, and property
prices. Midwesterners and Southerners are more likely
to buy and hold whereas those in the Northeast are
more likely to fix/flip. Investors in the western states
are evenly split between fix/flip and buy/hold strategies.
Jumpstart Your SFR Portfolio, pg. 49
Whatever your investment style, we have the capital
for either strategy. It’s an exciting time to be an inves-
tor; trends indicate that the rental market will continue to
improve over the next decade. Colony American Fi-
nance is ready to provide meaningful and cost effective
financing options for your portfolio.
Colony American Finance (www.colonyamericanfinance.
com) is the leading provider of low cost, non-recourse
revolving bridge & permanent mortgage financing for
owners of single family rental portfolios. Our affiliate,
Colony American Homes, owns more than 22,000
homes across the United States, so we approach lend-
ing from the perspective of the landlord-investor. Both
companies are owned and controlled by Colony Cap-
ital LLC, a real estate investment firm with $54 billion
invested, including a publicly-traded mortgage REIT.
When you work with Colony American Finance, you are
talking to a professional, experienced lender who offers
competitive rates, knows how to underwrite and get your
deals funded.
Please call 1844.CAF-CAF1 and visit us at
http://www.colonyamericanfinance.com to refinance
your rental portfolio or leverage your buying power with
a credit line. We have the capital for either strategy.
For two years, REI Wealth
Monthly has been delivering
vital industry news, tips and
insider secrets to success.
REIWealthmag.com

Here Comes the New Guard: B2R Finance Leads Lending Innovation, pg. 30
cient lending platform which provides
low rates and speed in funding, re-
quiring the least amount of data, while
retaining sound credit decisions. Be-
yond the sunnier math of using single
credit lines to flip or rehab and man-
age multiple properties, this creates
a more turnkey financing solution so
that investors can redirect their time
to growing their portfolios versus man-
aging them.
SCALING YOUR PORTFOLIO
WITH LESS FRICTION
Both passive investors and real estate
entrepreneurs will find loan solutions
like these provide the framework need-
ed to scale their portfolios while the
market is ripest. Looking forward, it is
finance relationships and the opera-
tional edge which will divide those with
the best net returns and most time to
enjoy their gains from the rest.
Whomever investors have been
using for leverage until now, it is
worth keeping an eye on what’s
coming out of the B2R Finance
Lending Lab. For more insight into
the minds and intelligence being in-
jected into this mortgage maverick’s
DNA, check out B2RFinance.com
and DwellFinance.com.
The NEW Rules of Fundraising, pg. 26

NEW ISSUE!
Realty411guide.com/
CashFlow-Express
• How to start your own fund
• 7 actionable exit strategies
• How and where to find highly
profitable notes and REOs
• The art of negotiating with
banks
• Reducing risk in investing
• How to operate at 100%
IS THIS BOOK IS
FOR YOU?
Whether you’ve
been timing the
markets to get in and
invest in the real estate
world, already have
a portfolio of rentals,
have been fixing and
flipping houses, or are
just looking to diversify
from the stock market,
this book is for you.
It’s about making more money,
augmenting current success by taking
the next step up, and investing in line
with what’s most important in life.
Real Estate and Mortgage Analyst,
Tim Houghten, says “Must read! In this
book Fuquan spills the real deal, in an
honest look behind our mortgage bank-
ing system, how to profit from others’
failure to serve investors and
borrowers well, and how to
make money, while providing
homeowners a desperately
needed lifeline.”
ABOUT THE AUTHOR
When the world got served the most
catastrophic financial and real estate
crisis in almost 100 years Fuquan Bilal
pioneered a way to turn that distress
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GET THE KEYS TO YOUR
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吀唀刀一䤀一䜀䐀䤀匀吀刀䔀匀匀䤀一吀伀

Way of the
Real Estate
WARRIOR
How to get, and keep,
more of what you want
in life and finances, through
real estate, sustainably…
WAY OF THE WARRIOR
A real estate warrior isn’t just someone
charging ahead determined to achieve
‘rhinoceros success’ at any cost. In fact,
the true definition of ‘warrior’ refers more
to experience than anything else. Any-
one that is even vaguely familiar with the
explosion of MMA and the UFC, knows
two things. First is that what was once a
mixed martial arts competition between dif-
ferent styles and strategies has evolved to
where virtually every fighter now trains in a
variety of arts in order to be able to survive
and win. It’s about making the right moves
at the right time. Second; you can’t just be
great at offense or defense. Anyone can
score a one hit wonder, once. But to win
over the long run, you need both. You’ve
got to be covered from the hits, and have
good technique and know when to strike
too. That’s why football teams have both
an offense and defense.
ROLLING WITH THE PUNCHES
You’ve got to have stamina, and to be
What really propels the financial
success of real estate leaders that
outlast and outperform the crowd?ABOUT
SENSEI
GILLILAND
Founder of Black Belt
Investors; Sensei Gillil-
and has been featured on
the cover of Real Estate
Wealth Magazine, hosts
‘The West’s Top Ranked
Real Estate Investors’
Club’ – 12 ROUNDS,
and has engineered
several highly popular
trademarked real estate
investment systems.
Sensei is the go-to
source for serious inves-
tors and entrepreneurs
seeking extremely ef-
fective, no holds barred
training, investment
properties and funding.
Contact information:
Black Belt Investors
951.280.1900 or www.
BlackBeltInvestors.com
able to brush off some hits. That’s true of
real estate, personal finance, life, martial
arts, and boxing. Just ask Mohammed Ali.
This year I’m celebrating 27 years as
a martial arts business owner, and 20
years as a real estate business owner.
It’s been a couple decades of making
great strides in income, wealth building,
and being able to share those successes
with others.
What I haven’t talked about much
before is the blows. Not the market cycles
and changes. I’ve managed to weather
those quite well. But those we all face
such as health challenges. Despite
decades of fitness and training even I
have found myself out of the office due
to unexpected medical issues in the
past. We all get KO’d by the flu now and
again, but I’ve also had to undergo ankle
surgeries, and deal with eyesight issues,
and more. This year I was hospitalized
with meningitis. That meant weeks in
bed. Some people never survive that. For
the average individual that time off and
the medical bills can mean the end of a
career and bankruptcy.
I made it. Everything continued to keep
moving like clockwork, and I’m confident
that issues like these won’t take me down
thanks to my business, the Ultimate Cash
By Tim Houghten

Machine, and the key part passive
income real estate plays in that. In
fact, even though I thrive on being
in action, if I have to, I can kick
back and catch an old MMA fight,
or even an extended power nap,
while in recovery mode. All without
missing a check.
YOU CAN’T JUST SURVIVE ON
THE SIDELINES
Today millions of Americans
are facing much bigger financial
challenges than I have every day.
It’s not just about effective defense
against those small
bumps and bruises
that can come at any
time. It is career ending
injuries, the prospect of
trying to catch up with
passive income and
retirement savings, and
having a backup in case
of a career field falling
apart or being replaced
by technology and new
regulations. You’ve got
to be proactive, and
have good defense.
But you aren’t going
to score any wins or
defend what you’ve won
by sitting in the bleach-
ers. You can’t get any hits if you
aren’t even in the batter’s box.
But I don’t even have to tell you
that stocks are scary right now,
and that oil and gas, and gold offer
nowhere to hide. And nor do bank
savings accounts, CDs, or under
the mattress.
MIXING IT UP IN
REAL ESTATE
I personally love the diversifica-
tion of my ultimate cash machine,
and business which provides
consistent income from rents,
lump sum payouts from wholesal-
ing for those big bills and acquiring
more rental properties. All of this is
insulated with smart (and legal) tax
umbrellas, and has more literal con-
crete protection than a black belt can
break through with a blow. Top that
off with a well selected champion
portfolio of real estate assets which
is set to deliver robust apprecia-
tion over the next few years, and it
checks all the boxes. That’s the way
that I ensure my finances are strong
and fighting fit, no matter what I’m up
against.
KNOCKING OUT THE
CLICHÉS OF REAL ESTATE
INVESTMENT
The beautiful thing is that all
clichés aside, there is a way for
everyone to get in and begin building
this for themselves. There’s no one
magical cookie cutter answer that
suits everyone.
For some it may require ninja style
tactics to get going with little mon-
ey, time, or credit. That may mean
beginning with real estate wholesal-
ing, lease options, or private lending,
and partnering up. Maybe some will
start real estate businesses of their
own. For others it may be starting by
rolling over IRAs and 401k accounts
to self-directed retirement plans, and
investing in rental real estate.
I do this every day. I share as much
as I can because it is just so import-
ant. It is sad for anyone to miss out on.
It’s not just about having more money.
It provides that. But the peace of mind,
giving kids the best start they can
have, helping their parents, and reach-
ing full potential in giving and helping
others can all be priceless. And you
don’t necessarily have to become a
full time investor
or real estate
business owner
to enjoy it. In
fact, my Remote
Rehabs service
was featured by
Globe St. and
Market Watch
this year for
helping individu-
als achieve their
financial goals
hands-free.
I know that
making the
leap into real
estate can be
confusing, and
everyone is in a unique situation, with
different timelines, and strengths and
goals. My companies offer real estate
tours and practical workshops, but I
also offer personal one-on-one Strate-
gy Sessions for FREE.
I’d love the opportunity to help you
get to where you want to go finan-
cially; making stronger gains, and
protecting what you build. If you’re
not sure of the best strategy for you,
or what the next step is, request a
Free Strategy Session online at:
BlackBeltInvestors.com/coaching/
free-consultation

E
ver wished self-di-
rected IRA investing
was simpler, for you,
and those you work with?
Wished that all the net return and tax
advantages of investing through an IRA
where as easy to wield, and as com-
fortable as having cash in your pocket,
swiping a card, or making online and
mobile payments from your smart-
phone?
The Entrust Group myDirection Visa®
Card delivers all of that.
EQUIPPING INVESTORS FOR
STREAMLINED SUCCESS
Self-directed IRAs are undeniably
one of the best power tools available
to investors today. Self-directed IRAs
just makes investing better, and more
profitable. Not having one means pay-
ing more in taxes, and suffering subpar
investment returns. Yet, until now many
have passed on the power perks of this
vehicle due to perceiving it as compli-
cated, sluggish, and time consuming.
This isn’t just a problem for individual
investors, but for real estate educators
and professionals, and their clients that
stand to win so much.
The Entrust Group myDirection Card
promises to tear down these old barri-
ers, to deliver more of what investors
want, need, and deserve. It’s the ability
and flexibility to direct your future with
the swipe of a card or a smartphone
app. The new pre-paid Visa card pow-
ered by citi enables individual inves-
tors to maintain control of their funds,
on-demand.
SPECIFICALLY THIS CARD
EMPOWERS YOU TO:
1. Make instant transactions
2. Save on transaction fees and
paperwork
3. Invest online
DIRECT YOUR FUTURE™
In an exclusive interview with
Certified IRA Services Profession-
al and President of The Entrust
Group, Jason Craig highlights
some of the critical investor needs
that the myDirection card solves.
When put in perspective it’s
pretty clear that a card like this is
essential for enabling investors to
operate effectively in today’s mod-
ern landscape, while maximizing
opportunities.
Being able to invest online is
a huge step for IRA
account holders. This
means being able to
take advantage of
crowdfunding oppor-
tunities and auctions.
Even in person inves-
tors can now potential-
ly snap up tax-liens,
mortgage notes, and
auction properties
with their cards.
Entrust’s Jason
Craig also highlights
card benefits that go
beyond acquisition to
asset and property
management. For
example; if you own
real estate in your
IRA the antiquated
tradition required
contacting your
administrator, submitting
contractor estimates, and hav-
ing checks mailed, all before
being able to get contractors
to work on repairs. That’s not
highly efficient on a weekend
evening when a major leak
shows up. So the card not
only “reduces time to payment
and action, but eliminates the
hassle of receipts, wasted time,
and reduces expenses.” That
means more freedom, and net
profit.
HOW IT WORKS
Jason Craig explains that one
of the reasons a card like this
has taken so long to launch is
the meticulous attention and
re-verifying in every step to en-
sure compliance, user experi-
ence, functionality, and “getting
it just right.” It’s kind of like Elon
Musk designing the new Tesla
strategy
The Self-Directed IRA Card that
Changes DYNAMICS in Investing
Interview by Tim Houghten

Realty411 Magazine - Featuring Kathy and Rich Fettke with Real Wealth Network

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