CashFlow Express - Why Wait for Wealth? It's RIGHT HERE! Featuring Randy Reiff, CEO, FirstKey Lending.

Passive Income for Today & TomorrowPassive Income for Today & Tomorrow
Ca$hFlow
EXPRESS
PRiCelessVol. 2, no. 2, 2014
INSIDE: Strategies to Increase Your Wealth • PLUS: Highlights from Our National Expos
Y
ou Asked, They Listened:
FirstKey Offering More
Ways to Finance Your
Investments.
FirstKey Lending
Offers Investors
Unique Options
FirstKey Lending
Bridge Loan Features:
Loan Amounts: $10M+
Rate Type: Floating
Loan Term: Up to 18 Months
Property Type: 1- to 4- family
residential
Loan-to-Cost: Up to 65%*
Amortization: Interest only
Interest rate: Competitive pricing
*Higher on a case-by-case basis
FirstKey Lending Express
Fixed Loan Features:
Loan Amounts: $500,000 to $4M
Rate Type: Fixed
Loan Term: 5 and 10 year
Property Type: 1- to 4- family
residential
Loan-to-Value: Up to 75%
Amortization: 20 to 30 year
Interest rate: Competitive pricing
For more information, please
contact Brian Mascis at:
1-855-299-1944
FirstKey Lending closed
dozens of Express
and Conventional
Transactions recently.
$1,659,000
41 Properties located
in TX, OH, GA
$4,000,000
76 properties located
in NC, SC
$9,750,000
85 properties
located in CA
$18,500,000
340 properties
located in FL, GA
$32,00,000
450 Properties located
in FL, IN, MD,
MN, NC, TX
Randy Reiff, CEO of FirstKey Lending
A year ago, New York-based FirstKey
Lending was the first to step into a
new financing space – making capital
accessible to small- and medium-sized
investors in one- to four-family resi-
dential rental properties nationwide.
The financial firm’s Chief Execu-
tive Officer, Randy Reiff, says the
firm purposefully positioned itself
to “invigorate the small and middle
markets” and to “empower smart,
entrepreneurial investors to build and
optimize their portfolios and busi-
nesses.”
The financial backing of Cerberus
Capital Management, L.P., one of the
country’s largest private investment
firms, gave FirstKey the opportunity to
hit the ground running while focusing
its attention on developing the prod-
ucts its customers needed.
Following the successful introduc-
tion of its Conventional fixed- and
floating-rate loan products for larger
investors needing $5M to over $500M
in funding, FirstKey launched its
Express loan product for investors
seeking loans of $500,00 to $4 million
in late 2013. That product has deliv-
ered in a big way. “We’ve been thrilled
at the response of real estate investors
to our Express product, which we were
able to introduce in an affordable way
by streamlining the documentation and
closing processes,” Reiff said.
These Express loans offer inves-
tors reduced borrowing costs and a
much more efficient process than was
previously available to these owners
so that they can buy additional one- to
four-family properties, refinance their
existing debt or cash out.
Reiff said that FirstKey has seen
strong demand for its products and
only expects that demand to increase.
“Our business is accelerating as more
and more customers – most of whom
have historically had only limited ac-
cess to this type of financing – become
aware of the variety of products First-
Key offers,” Reiff noted. “Histori-
cally, less than 25% of the borrowers
we are targeting have availed them-
selves of financing of any type. We’re
very excited to see that number grow
as the rental finance market continues
to expand.”
Reiff also pointed out that FirstKey
offers products to accommodate a
number of different types of inves-
tors. “There’s been a lot of focus
recently on the very large investors
in the one- to four-family residential
rental properties, but it’s important to
remember that the largest segment of
this market is represented by the more
entrepreneurial owners who may own
as few as 10 properties or less,” Reiff
said. “These owners typically have
strong ties to their communities and
are looking to grow their portfolios in
a disciplined fashion over time. We’re
here to make sure that these local
investors have the opportunity to grow
and develop their investments.”
FirstKey couldn’t have had better
timing in coming to market with a
lineup of new mortgage loan products
aimed at the small and middle market.
Looking to fill the void in afford-
able investment housing financing,
FirstKey has provided the fuel for real
estate investors to make it happen.
In addition to the successful launch
of the Express loan product, FirstKey
continues to be the market leader in
Conventional loan products geared
towards larger investors as well.
What’s more, CEO Randy Reiff
shared an exciting new loan pro-
gram being rolled out for small- and
medium-size investors in an exclusive
interview with Realty411 magazine.
Continued on pg. 21

July 18-20, you’re invited to a life-changing event: the Millionaire Maker.
It will take place only once, will be followed by 60 days of mentoring,
and I guarantee it will break the “box” in which you’re living.
What does “try” mean to a world record breaker? Millionaire Maker dares you
to look in the mirror and realize you have more inside than you know. On Friday night,
together we’ll watch a very special documentary about the inspiring story of world-
recorder holder, Diana Nyad. At the age of 61, what motivated her to be the first person
ever to swim from Cuba to Florida in shark infested waters? You’ll find out first hand when
she joins us live on Saturday, challenging you to rethink what “try” in your life really means.
How do you break out of the “box”? I’ve hand-selected over 15 guest speakers
and panelists to join us. Prepare to be motivated as we explore first-hand how these
successful real estate investors and business pros realized their untapped potential.
Then, challenge yourself to discover your personal formula to take that same rigid
discipline you have in your best areas of accomplishment and use it to improve every
other area of your life.
60 days of Mastermind Mentoring? That’s right. After the live event, you’ll join me
and one of our speakers weekly for Mastermind Fridays. For 60 days, we’ll explore
additional reading materials to keep you motivated and committed to the goals you set.
We’ll also keep you updated on personal goals we speakers have set for ourselves.
We’re all just one habit away from living a very different life. We’ll be doing this together.
Millionaire Maker asks you to commit 60 days to attain the next level in whatever is
important to you now! Is it about realizing financial success via real estate investing?
Yes! Will it be about learning a step-by-step process to attaining your specific personal
goals? Yes! Is it about learning that the “box” you’ve chosen to confine your life to can be
replaced by iron will and new-found skills? Yes! Please don’t hesitate, commit right now
to attend. There is limited seating due to the nature of the mentoring piece after the live
event. Change the trajectory of your life by joining us in July for this one-time-only event!
Sincerely,
P.S. I so strongly believe in this event I’m offering a money back guarantee. If after the first
full day you’re unhappy, hand in your manual and I’ll refund admission. In addition, use
The Norris Group as your hard money lender on a Socal deal within two years after the
event and I’ll rebate the cost of the event 0.5% per loan until you get it back in full. See
the web site for full rebate details and to register before we sell out. See you July 18th!
Also FeAturING:
Danica Patton, Jennifer Shenbaum,
Andrea Esplin, Holly McKhann, Rick Solis,
Doug Van Soest, Steve Landis, Bill Tan,
Silvio Brigliadoro, Iris Veneracion, Jack
Fullerton, Ward Hanigan, and Randy
Grigg.
DAte & loCAtIoN:
Friday, July 18 – sunday, July 20
Westin South Coast Plaza
Costa Mesa, CA
reGIster At:
www.thenorrisgroup.com/millionaire
or call (951) 780-5856
$1,797 until 6/16
$2,297 after
Event includes Friday evening movie snacks;
breakfast, snacks, and lunch Saturday and
Sunday; all seminar materials during live event;
web portal access with additional content and
recordings from live session. Mentoring books
materials will be responsibility of attendees so
each can choose preferred format.
Bruce Norris
Ben Gay III
tony Alvarez
Mike Cantu
Diana Nyad
Author & World Record Holder
11x15-411Mag.indd 1 5/13/2014 12:28:11 PM

FOUNDER
Linda Pliagas
pliagas@msn.com
EDITORIAL STAFF
Hannah Ash
Lori Peebles
Stephanie Mojica
COPY EDITOR
Lori Peebles
PHOTOGRAPHER
John DeCindis
PRODUCTION
Lori Peebles
Augusto Meneses
PUBLISHED BY
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EVENTS & EXPOS
Teri Burke
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TO REACH US, CALL:
310.499.9545
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CashFlow Group or REIA meeting!
Passive Income for Today & Tomorrow
Ca$hFlow
EXPRESS
Yes!You can be
rich from
owning real
estate and trading stocks.
We’ve all heard the story of the
little old lady who lived modestly
and worked as a school teach-
er for 40 years. She never
earned more than $35,000 per
year, owned a modest home,
and shared her life with two
cats. Once she died, her rela-
tives discovered a $150,000
life insurance policy and $1.5
million in stocks that she left
to the elementary school’s
scholarship fund.
The national media loves
to air these stories. It seems
there are several old ladies
who fit this seemly unique
profile year after year. How could
that be?
Investing in stocks is not the
world’s most challenging task. In
fact, at its core, it’s very simple. The
truth is that the stock market creates
millionaires every year. Investing in
stocks, with wealth in mind, is easier
than you think.
Invest In What You Know
Wanna be a good stock market in-
vestor? Keep it simple and start with
companies and products with which
you are familiar.
If you’ve ever opened a can of
Coca Cola on a hot summer day and
felt refreshed and invigorated, why
not own the stock? It’s a product you
know with a story you understand.
When I say “a story you understand,”
I mean to say that you understand
how the Coca Cola
Corporation makes
money, or to ex-
press it in Wall
Street terms, you
understand how
the company earns
revenue. The more
bottles and cans of
Coke that Coca
Cola sells around
the world each day,
the larger the com-
pany’s profit. Over
the past ten years Coke stock (symbol
KO) has risen from around $40 per
share to a high of $71 — $1000 in-
vested in Coca Cola stock ten years
ago would be worth $4,100 today;
$10,000 invested in Coca Cola stock
would be worth $41,000 today.
If you spend more than $100 per
year eating fast food, why not own
the stock? Over the past ten years
McDonalds stock (symbol MCD) has
risen from a low of $15 per share to a
high of $95 per share.
By Doug Carver
Organizer Pasadena and Burbank
Cashflow Meetup Groups
I
can remember my first time play-
ing Robert Kiyosaki’s Cashflow
board game about eight years
ago and how it
started a chain
of events that continues
to this day. What stuck
with me most was not the
“how to” of playing the
game but the people that
I met at the event. These
were not like the normal
people in my life that
would tell me I was crazy
for trying to start my own
real estate business or
that financial freedom was impossible
without a steady well-paying job. The
people I met were excited about learn-
ing and expanding their knowledge on
how to achieve financial freedom. They
were active investors in real estate and
the stock market. They were small busi-
ness owners with a passion and vision
for creating more financial success in
their lives. Overall, they had a mindset
for prosperity that I like to call a “Cash-
flow” mindset.
A lot of people complain that Kiyosaki
does not provide the specific details on
how people should implement his strat-
egies to create financial freedom in his
books and programs. Truth is he never
spells out a step-by-step “how to” for
building long-term financial freedom.
What he does teach is far more impor-
tant, and that is how to create a “Cash-
flow” mindset. Kiyosaki describes it in
his book Cashflow Quadrant moving
your mindset from the E (employee) and
S (self-employed) side of his Cashflow
quadrant to the B (business owner) and
I (investor) side of the quadrant. In lay-
man’s terms, it’s the mental shift from
someone who seeks financial security at
all costs to someone who can confidently
and knowledgeably take measured risks.
This is a simplistic definition but a very
important one to understand. Without the
correct mindset, it really doesn’t matter
how much you learn the “how to” of real
estate investing, trading stocks, building
a strong MLM business, etc. You will not
succeed. It’s like trying to grow corn in
a field of sand. The seeds will not germi-
nate and you’ll end up with next to noth-
ing to harvest in the fall.
How, you ask, does this relate to the
Cashflow game?
Well, after playing
the game a bunch
of times, I learned
the “how to” of
getting out of the
rat race, but I still
was not able to
take what I learned
from the game and
apply it to my real-
life financial situ-
ation. However, I
realized that the time I was spending with
my new Cashflow friends was changing
the way I thought about money and my
financial future. I no longer viewed the
stock market as a giant rigged system for
losing money. I began to see the tremen-
dous opportunities in the sinking real es-
tate market even as many people I knew
were losing money on deals that had gone
bad. Overall, I saw for the first time op-
portunities all around me to create wealth
even as the newspapers talked constantly
of the “Great Recession.”
Today as a result of my ongoing in-
volvement playing and organizing local
Cashflow events in Southern California,
I have a thriving real estate investing
business. It was after speaking with one
of my Cashflow friends who was a real
estate investor that I was encouraged to
start wholesaling distressed properties. It
turned out to be a great decision. More
recently, I’ve begun to learn how to suc-
cessfully trade in the stock market using
options. As a self-proclaimed real estate
“zealot”, I never would have dreamed of
investing in the equity markets. Howev-
er, after playing Cashflow 202 with my
Cashflow friend ,who is an active trader,
and learning about his trading system, I
was able to see the opportunity before
me. I now fully expect that investing in
the markets will be a huge part of my fu-
ture financial success in addition to my
Learn How to Create Stock
Market Wealth Today
Investors Manifest a
“Cashflow” Mindset
FREENo. 1 / Vol. 1 2012
Personal Finance News from the Publishers of Realty411 Magazine - www.Realty411Guide.com
Continued on pg. 2
Continued on pg. 12
By Tyrone Jackson
TheWealthyInvestor.net
Doug Carver (left) and Chris Hanson dis-
play the Cashflow game to group members.
Contents - Spring 2014
1 FirstKey Lending Offers Options
4 Publisher’s Welcome Note
5 The Millionaire Maker Returns
6 Management Tips by Texas Pam
7 Out of State Investment Advice
9 Rehab with Andrew Cordle
10 Q-n-A with Zinc Financial
12 & 18 Attract Private Lenders
13 Investing in Texas Land
15 The Investment Lab is Open
16 Incorporate a Business
21 & 23 Cashflow Resources
24 Scenes from Our Expos
26 How to Avoid Capital Gains
From the Publishers of Realty411 Magazine
FundingAvailable
forrealestateinvestors
Pacific Private Money makes lending easy. We fund loans on non-owner
occupied single family, multifamily, mixed-use residences, and challenged
townhome or condo projects.
We’re fast. We’re friendly. And, we’re ready to help you get the funding you
need right now.
Letusfillyouinonall thedetails
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1604 Grant Ave., Novato, CA 94945 California Department of Real Estate Brokers #1897444
PRIVATE MONEY LOANS
Welcome
Thanks for joining us
once again for a new
CashFlow Express...
I
f you are reading this issue then most likely you
have attended one of our live events. When I first began to host real estate
gatherings back in 2008, we attracted a handful of people in Los Angeles
who were interested in learning and talking about real estate. Some people
already had experience and we shared ideas and tips, some guests were new-
comers who came to observe and absorb.
My guests and I would often meet at the Marina del Rey library right on
the water at the quaint coastal city in California. It was the perfect place, as
the library’s benefactor Lloyd Taber was a wealthy real estate mogul who
bequeathed millions to the building’s renovation years ago.
Next, we started hosting larger educational gatherings at the Veteran’s Hall
in Culver City. Fast forward to the present and our company, Realty411, has
hosted events in San Diego, Indianapolis, Los Angeles, San Jose, Scottsdale,
Pismo Beach, Seattle, Atlanta and even New York City. It’s a dream come
true, and we plan on hosting many more expos and mixers around the nation,
including upcoming events in Florida, Missouri, Ohio, and Texas.
Our largest expo has attracted up to 300 people and our smaller events
regularly unite an exclusive group of veteran real estate leaders. We plan on
expanding our events even further. My goals are lofty: I envision some day
hosting international real estate conferences — this is precisely how much I
enjoy and believe in the power of networking.
It is a pleasure and privilege to meet the readers of our numerous publica-
tions. We produce our quarterly glossy Realty411 magazine, with Real Estate
Wealth as an alternate cover. We have separate distribution and websites for
each. The 100-page glossy is available at no charge at selected grocery stores,
and will soon be available in bookstores across the country.
Next, we have our REI Wealth Monthly, a digital and interactive issue spe-
cifically designed for online enjoyment. It was created for the Apple News-
stand by Noland Araracap, a San Diego-based technology enthusiast. Next,
of course, is our newspaper Cashflow Express, which is directly distributed at
our live expos and mixers, and at selected real estate events that we support
and sponsor around the country.
For the rest of the year, in addition to expanding our calendar of live ex-
pos, we will continue to expand our media and marketing company with spe-
cial print supplements and new online websites. We just completed our first
Private Money 411 Special Supplement and are starting the second! It is our
mission to be an all-encompassing resource of information for investors. In
closing, I’d like to add that if we can assist you in any way, or if you have any
feedback on our publications or events, please let me know. Your suggestions
and comments are always welcomed.
LindaPliagas
Contact us: 310.499.9545 or info@realty411guide.com
Be Social and Receive Regular Updates from Me on:
Facebook, Twitter, LinkedIn, Pinterest, Google+
DisClosuRe anD infoRMation foR ReaDeRs anD eXPo guests
The publications, events, expos and mixers promoted by Realty411guide.com and/
or their owners, employees agents and affiliates (collectively “411”) are for in-
formational and entertainment purposes ONLY. The information and presentations
provided therein do not constitute an offer or solicitation to buy or sell securities
or real estate. Please be aware that real estate investing is VERY RISKY. 411 is not
responsible for any of the information provided and/or statistical data presented,
and do not reflect the opinions, advice or research of 411. You personally are 100%
responsible for your due diligence, for all investment information and for all deci-
sions with respect to any potential investment or transaction. 411 strongly recom-
mends that you seek the advice of your trusted attorney, broker, CPA and/or finan-
cial adviser before investing. Thank you.
CashFlow Express • Page 4
CashFlow Express is published in Santa Barbara County by Realty411. © Copyright 2013. All Rights
Reserved. Reproduction without permission is strictly prohibited. The opinions expressed by writers and
columnists are not endorsed by the publishers and/or editorial staff. Before investing in real estate,
stocks, bonds, mutual funds, gold, or securities, seek the advisement of a trusted financial advisor,
attorney or tax consultant. Investing in any asset and market sector is risky business and may result in
the loss of capital. Please invest responsibly. PRINTED IN THE USA ~ GOD BLESS AMERICA
Connect to our virtual network ~ Search for us here:

was my goal nine years earlier, make a
$1,000 a year for every year I was old.
What a big “box” I now lived in!
Then one day, the bar was raised
yet again. In one 3-hour meeting, Jim
Rohn embedded a new concept into my
brain; millionaire. He challenged the
audience to stop kidding themselves
about the level of their commitment to
their dreams. As I listened to him, I felt
he had made some discoveries that had
changed his life and once again, my
life’s trajectory changed in one day.
I arrived home that night and I wrote
a series of audacious goals. When
reached, these goals would allow me
to live in a “box” I had never dreamed
possible. Imagine having a choice of
what to do with my day, whatever I
wished! Imagine having enough money
or cashflow so that I never had to
work, but did so anyway because I love
what I do!
Until that night, I had never dreamed
of a “box” that big.
Is it possible to change your life in a
day? Yes, I truly believe that’s how it
works. You don’t get a black belt in ka-
rate in a day, but there comes a moment when you
commit to do whatever is necessary to reach your
goal someday. It is in that moment of commitment
that the course of your life changes.
In July, I’m so pleased to bring an event back
that we haven’t produced since 2006. Decide
right now to attend. The experience will change
your life by expanding the “box” you are living
in, I guarantee it. At every Millionaire Maker, we
invite a special guest speaker. In 2005, our guest
speaker was Jim Rohn. In 2006, it was Rudy Rut-
tiger (Notre Dame Football fame and inspiration
for the movie Rudy). This year, I’m thrilled to
announce, we’ll host one of our most motivational
speakers ever, without a doubt!
On the first night, we will watch world record
holder Diana Nyad’s documentary together. I’ve
watched it three times and cry every time. I’m
humbled by the effort she made attempting to do
what no human before had ever done. Watching
this documentary will challenge you to ask your-
self this question: “Have I really ever tried my
absolute hardest at anything?”
Every speaker has been hand-picked for this
event, and every speaker or panel participant
has escaped the “box” they were assigned to and
now live life on their own terms. That’s what this
weekend will be about. You will leave with the
desire to break free from previous notions of what
The Millionaire
Maker Returns
life should be, and replace it with new goals
and dreams for you and your family.
Featured speakers include Diana Nyad,
Tony Alverez, Mike Cantu, and Ben Gay III.
I will personally moderate panels that will
include Danica Patton, Jennifer Shenbaum,
Andrea Esplin, Holly McKhann, Iris Venera-
cion, Rick Solis, Doug Van Soest, Steve Lan-
dis, Silvio Brigliadoro, Jack Fullerton, Ward
Hanigan, Randy Grigg, and Bill Tan. From
local real estate legends to up-and-coming
rock stars in our industry, the content will be
unlike any event you’ve attended before.
60 Day MentoRing
Millionaire Maker includes 8 weeks of fol-
low up mentoring. After the live event, once
a week I’ll be joined on a webinar by one of
our guest speakers where we’ll dig into as-
signed readings to keep you motivated, share
additional insights, take your live questions,
and we’ll even share our progress on some
goals we’ll be making during the live event.
it’s all aBout the “Who”
Millionaire Maker is not about the "When to
invest" or "How to invest" that most are used
to The Norris Group producing. Millionaire
Maker addresses the "Who in You" that you
bring to real estate and life. Business profes-
sionals, real estate investors, and entrepre-
neurs of all experience levels are welcome
and encouraged to attend. I truly hope to see
you there.
For more information, please visit:
http://thenorrisgroup.com/millionaire
by Bruce Norris
O
ur first speaker for our first Mil-
lionaire Maker since 2006 wet
his bed until eighth grade. During
high school he attempted to go out
for baseball but quit before he ever
got to the baseball field. During the first three
years of his work career he was fired five times.
Somewhere during that time frame he was on
food stamps. His wife went without a car for the
first seven years of their marriage.
Our co-speaker, on the other hand, is a multi-
millionaire. He has bought, sold and funded
purchases on over 3,000 properties. He correctly
predicted both the boom and bust cycles in Cali-
fornia. His company has won national awards
and he is trusted with millions of dollars of other
people’s money. He was invited to address Fan-
nie Mae and FHA in Washington D.C. He has
earned a reputation as an honest and successful
business owner. And at an age when most men
look forward to retiring, he became a black belt
in karate.
What you may not realize is that these two
very different men I have just described are
one and the same person. Me! What changed an
eighth grade bed wetter afraid to step up to the
plate into a man that thousands trust for advice?
I’ll tell you this; it’s something you have ac-
cess to.
The first version of me had a very limiting
self-image and very low expectations. I had
placed my life in a very small “box.” The “box”
I had assigned to my life was that of a person
who would barely scrape by; an average guy who
would certainly never accomplish anything amaz-
ing.
What changed me from a man barely able to
feed his family into a millionaire?
It started with my first mentor at age 20; a
hardware store manager. While I was working
for him making $2.00 an hour, he was making
$100,000 a year working the same amount of
hours! One day he chewed me out for using such
a small portion of my talents and trying so little
on behalf of my family. That pissed me off! I
decided to work hard just to show him he was
wrong. He laid a challenge before me to become
more than I was. When I accepted that challenge,
it immediately changed the trajectory of my life.
His influence gave my life a bigger “box” to
operate in.
Nine years later, I was pretty happy with my-
self. I lived in a new 1,400 square foot house. I
had a steady job as a salesperson and was mak-
ing nearly $1,000 for every year old I was. That
What changed me from a man barelyWhat changed me from a man barelyWhat changed me from a man barely
able to feed his family into a millionaire?able to feed his family into a millionaire?able to feed his family into a millionaire?able to feed his family into a millionaire?able to feed his family into a millionaire?able to feed his family into a millionaire?

S
ome airlines offer amenities such as gour-
met snacks, personal televisions, warm face
towels and ergonomic seating while some
charge by the soda (and you’re lucky if they
have your favorite kind). When it comes to property
managers, some inspect your property each month
and send you full reports - others simply collect
rents. Pam Blanco, much like the select airlines of-
fering top-notch service, treats her clients as though
they are an invaluable part of her business (because
they are). A successful investor herself, Pam takes a
different approach to property management - and has
an inside perspective on what investors should look
for and receive when it comes to choosing a great
property management company to safeguard their
investments.
Investors who work with Pam, and most do so
based on word-of-mouth, invest with greater peace of
mind knowing that Pam’s team is on the case. Need-
less to say, repeat customers are kind of her thing. I
caught up with her in the middle of a workday - she
was driving, not surprisingly, between properties in
her home state of Texas. Pam was happy to share
some rules investors should adhere to in choosing
and working with a property manager or manage-
ment team to safeguard investments for the future.
Your Property Manager impacts your net Worth
As you know, the value of your property is not just
affected by changing market rates and neighborhood
gentrification: the value of your property has much
to do with the tenants to whom you rent and with
how well the physical property is maintained. A less
experienced or negligent property manager can cost
you thousands of dollars and lots of headaches while
an ace property management team tackles the hurdles
of investing (from leaky pipes to credit checks) so
you don’t have to.
your Property Manager grows your Portfolio
Part of property management, Pam says, is knowing
the local market inside and out. Her research team,
for example, is always on the hunt for great proper-
ties in desirable neighborhoods that promise low
Does Your Property Manager
Impact YOUR Net Worth?
Tips from Pam Blanco from Pamtexas.com
Continued on pg. 17
by Hannah Ash

by Teresa R. Martin, ESQ.
B
uying real estate rarely goes smoothly, and buying property out-
of-state has even more potential challenges. However, it’s entirely
manageable if the potential trouble areas are planned for and ad-
dressed. Many people own property out-of-state, and you can too.
Reasons for Buying Out-of-State Real Estate
There are several reasons why you might consider owning a property in
another state. Maybe local real estate prices are simply too high to qualify
for a loan on a second home or investment property. Perhaps another area of
the country is experiencing a real estate boom. Maybe you have a desire to
own a vacation home.
Potential Challenges
Lack of knowledge about the area and the local economic situation. Every-
one knows what areas of their hometown are doing well and which areas
are struggling. Successful real estate investors usually know more about
the area of town in which they invest than the REALTORS® do. You won’t
have this type of day-to-day knowledge and will have to rely on others for
their advice and opinions. Ensure you’re getting your advice from a worthy
source.
You don’t know the laws, regulations, property taxes, and other details.
Real estate laws and practices vary from state to state and even from city to
city. Even more challenging, what is written in
the codes and ordinances might not be the actual
practice. You’re going to have to find a way to
gain this knowledge.
You need an out-of-state team. You’re likely
to need a property manager, handyman, real estate agent, and more. Your team
will have a huge impact on the level of success you experience. Build your
team before you buy anything.
Everything is going to cost more. For a non-occupant owner, interest rates,
down payment, and insurance are all higher. The banks simply don’t have as
much faith in a property owner that doesn’t live in the property.
Things You Must Do
Hire an excellent property manager. If you’re going to rent out your property,
keep in mind that an investment rental property is only as good as its manage-
ment. It’s important to find someone that you can trust even when you aren’t
there. Property management includes making decisions about repairs, filling
vacancies, evictions, and handling any other problems.
See the property before you buy it. While very experienced investors fre-
quently don’t, it’s still a good idea to see the property before you buy it. Until
you have a team you can trust, you don’t really know what you’re getting
until you see it yourself.
Visit the area. If at all possible, get out to the area and arm yourself with
a local map. Spend a couple of days driving around, getting the lay of the
land, and asking a lot of questions.
Meet a couple of real estate agents
and landowners. Join the local real
estate investors club. Even if you’re
buying a vacation home, these are
the people that know the area, trends,
and relevant people. One good friend
in the local club is invaluable. Join
and make a friend.
Owning property out-of-state can
be a wonderful investment from ei-
ther a financial or enjoyment stand-
point.
As with anything else, if you
understand the potential challenges
beforehand and prepare for them,
you’re likelihood of success is much
greater. Be sure to get your team in
place and know as much about the
area as you possibly can. Good luck!
Financial coach, Teresa R. Martin,
Esquire, also known as the “Wealth
Building Maven,” has been finan-
cially independent since the age of
35. She is the founder of the Real
Estate Investors Association of NYC
(REIA NYC). An active investor since
the age of 18, she can be contacted
by phone at (646) 467-7370, by
From NYC & Beyond
How to Invest in Out-of-State Real Estate

A N D R E W C O R D L E . C O M
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by Hannah Ash
I
t’s tempting to think of millennial Andrew
Cordle as something of a comeback kid -
but that’s only one part of the story. I caught
Andrew in the middle of what was for him,
a normal work week. We talked from his
front porch at home in Georgia: He’d just
flown in from a speaking engagement in
Colorado and was preparing to fly out to Chicago
the next day. Though his story does involve losing
it all followed by winning it back and then some,
it’s also about dedication, work ethic and a commit-
ment to success.
Recently back from a twelve day cruise through
French Polynesia with his new wife, Andrew is a
self made man. He comes from a middle-class
background: his mother is a school teacher with
over 23 years of teaching experience and his fa-
ther is a union worker. Andrew shared with me that
when you look at the stories of the most success-
ful and wealthy families, it’s always one person in
that family that “goes outside the norm and changes
things for generations to come.” The week before
we chatted, Andrew had dinner with the vice presi-
dent of one of the world’s leading retailers, Home
Depot. Clearly, Andrew wants to be that person to
permanently alter the course of his family’s future.
Before we go into what he’s up to now, let’s
take a step back. I mentioned Andrew lost it all.
Like many of us, he was a victim of the economy.
During his first round at bat, Andrew was exclu-
sively a flipper. He was 25 years old, had a staff
of over 20 and a small fortune to his name when
the bottom of the market fell out in 2007. Andrew
found himself with a lot of houses he couldn’t liq-
uidate. It changed his life. It changed his approach
to investing.
“It does no good to have 20 cars in your garage
if you don’t have any gas for them,” Andrew re-
flected. The problem in 2007 was that Andrew had
put all of his eggs in one basket: flipping. Like so
many millennials facing a lean economy, Andrew
ended up living in his parents’ basement. Unlike so
many in his generation, Andrew did not stay there
for long. Through the power of education, he trans-
formed himself into a success again. This time,
his success is different. He took the lessons he’d
learned from his previous successes (and failures)
to build a sustainable career as an investor that now
takes him around the country and the world to share
his wisdom with others.
What was, and is, Andrew’s secret weapon for
success? What is his vehicle for being that person
in his family who steps outside of the norm and
creates lasting success? Education. As the son of a
dedicated school teacher, it’s not surprising. “Edu-
cation can save you hundreds of thousands of dol-
lars and time. One caveat though: the right
education,” Andrew tells me.
Andrew’s approach makes sense. “If you
want to be a doctor, don’t get a degree in
event planning,” the successful investor de-
clares. Though his approach to education is
simple, it’s refreshing. With so many real es-
tate gurus selling a one-size-fits-all-approach
to success in investing, Andrew does not. He
offers specialized academies that focus on the
strengths and interests investors have coming
into the game.
He offers a four-day course for investors
to learn about his approach to investing - and
to the different techniques available for suc-
cess. “There’s a wide variety of tactics to be
successful in investing. You need to choose
your tactic and go for it,” Andrew says. His
four day workshop helps investors to bring a
great sense of focus to their efforts.
When it comes to finding education as an
investor, Andrew takes a firm stance. “Many
real estate gurus are teaching techniques they
learned fifteen years ago. That doesn’t work.
As markets change, tactics change.” For his
part, Andrew participated in over 100 deals
in the last twelve months; over the course of
his career, he’s participated in over 1,000. His
investor academies aren’t taught by guest gu-
rus who want to sell their products; Andrew
personally teaches them with the help of his
wife and staff.
To be successful as an investor, Andrew
says that investors first need to decide what
they want to achieve. Some people want
boats, some people want to quit their day jobs,
some people want to establish trusts. As an
investor, Andrew says, you must know what
you want to achieve. Once you know what
you want, you can then pick a tactic that will
best help you accomplish your goals. Differ-
ent types of investors want different tactics.
In addition to Andrew’s four-day Investing
Academy, he offers four highly focused pro-
grams: Marketing, Rehabbing, Flipping and
Rental. His marketing academy is geared to-
ward creative types who want to find creative
ways to net deals. Attendees leave with real
world industry marketing know-how, blogs
that are set up for them and turnkey social
media accounts.
The Flipping Academy is for inves-
tors who love the art of the deal or need to
strengthen their cashflow before branching
out into other tactics.
Rehabbing is geared toward those inves-
tors who want to turn up the volume by doing
more deals and treat investing as more of a
ProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitProfitbusiness than an individual skill. The Rental Academy,
Andrew says, is for all investors. “No strings attached
cash-flow is the goal for all investors, regardless of your
tactic.” Rental properties do just that Aside from edu-
cating others, creating true cashflow is Andrew’s great-
est motivation as an investor. Aside from resilience and
determination, that “cash-flow is king” was the greatest
lesson Andrew learned from the economic downturn.
One of the top skills that Andrew Cordle advo-
cates investors have? Aside from focusing and choos-
ing a tactic, it’s knowing your market. Andrew shared
with me how just last week he closed on a Victorian in
Atlanta. The wholesaler from whom he purchased the
property didn’t know that the Victorian was located in a
top-choice district for a new charter school, making the
property a significantly more lucrative buy. Andrew said
that just by knowing his market, he stands to make many
thousands of dollars off the deal. “There’s no get-rich-
quick way to make it in investing,” Andrew says. Educa-
tion. Strategy. Tactics. The ability to bounce back. An-
drew says real estate investing is unique, and investors
must be too, “Investing is not a 9 to 5. Work hard. Play
hard. Be determined. Be resilient. Make a decision.”
‘No strings attached cash-flow is the goal for all investors, regardless of your tactic.’

by Lori Peebles
F
unding is the foundation for every real
estate transaction. As an investor, private
lender and CEO of Zinc Financial, Todd
Pigott knows exactly just how important fund-
ing is. The Central California-based firm lends
on deals throughout the Golden State as well
as neighboring Arizona and Nevada. To give our
readers insight on the private money industry,
we recently interviewed Pigott so he could give
us his perspective.
Question: Hello, Todd, can you tell us about a
recent deal you lent on?
ZINC: Recently, we funded two rental buy & hold
properties in the Sacramento region. Both were
3 bed / 2 bath, in solid urban settings. They were
constructed in the late ‘80s early ‘90s, with about
1500 square feet of living space. Each was move-
in ready with rental quality amenities. The inves-
tor purchased them for $147,500 and $169,500
respectively; rental income was solid with a DCR
ratio above 1.25. The real estate investor put
down approximately 22% against the purchase
price. ZINC funded both of these in less than 30
days with a 7.99% 5-year term. The real estate
investor expects to make between $10,000 to
$15,000 per year in net cash flow.
Question: What are some of your favorite ar-
eas to lend on and why?
ZINC: We just funded another great fix-and-flip
in the San Rafael area, up in Northern Califor-
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nia. A very dated property built in the late ‘60s,
with virtually no updating since. The ARV for the
SFR came in at $1,100,000, and the borrower
purchased the property for $750,000, and put
down 20%. The borrower expects to spend about
$70,000 on rehab for which ZINC is paying 70%
of the cost. The investor expects to have the
work completed in less than 6 weeks, and have
it sold in less than 60 days. ZINC funded this
transaction with complete ease and in less than
10 days.
Question: Can you tell us a bit about Zinc
Financial and what type of transactions you
prefer to lend on?
ZINC: We are a California lender. We focus on
fix-and-flip loans and rental quality buy-and-hold
loans. We lend on primarily SFR 1-4 units, but
will consider multifamily on a case by case basis.
We lend in any area of the state, so long as the
property is in a well-known urban setting. We call
it our “curbs and gutters” criteria, meaning if it
has curbs and gutters there is a high degree of
certainty we will lend on it. We stay away from
land, cabins, extreme rural properties or prop-
erties in highly undesirable areas. We are very
aggressive on our rates with our California Inves-
tors, and we are able to close our loans in 7-10
days because we are a direct lender with our own
capital; we are not a broker.
Question: In your opinion, how is the Califor-
nia market doing?
ZINC: It is a great time to purchase and fix-and-
flip in California. Property values have stabilized,
inventory is low creating a favorable resale for
your finished product. Most of our real estate in-
vestors are reporting record profits of between
$40,000 to $100,000 per fix and flip. What’s criti-
cal is buying the right property in the right loca-
tion. ZINC prefers lending on properties below
Continued on pg.,19
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A
s someone who has attracted hundreds
of private lenders to my real estate and
lending practice since the real estate
crash, I learned that one of the keys
to finding private lenders is to always
make it about them, and not you. Most people pro-
mote themselves. Promotion is about you. Attraction,
on the other hand, is when you make your pitch about
the other person. Key to forming a successful business
relationship is a sincere focus on what is in the best
interest of your prospective partner. This is especially
true in attracting private money. When you demon-
strate that you have the best interest of your prospec-
tive money partner at heart, and that your sincere goal
is to help your prospective private lender make a great
return on their money without taking unnecessary risk,
you become extremely attractive. By focusing on the
needs, goals and concerns of your prospective money
partner you will create a loyal client for life, and one
who will refer you to others who might also benefit
from your good work.
There are five basic questions that every prospec-
tive private lender is going to want to know. Your pre-
sentation—your credibility and opportunity package—
should clearly answer all five of these with clarity and
completeness. Here they are:
1. What is the opportunity?
2. How much money do you need?
3. How much can I make?
4. When do I get my money back?
5. What happens if you get hit by a bus?
1. What is the oPPoRtunity?
“I’m in contract to purchase a 3-bedroom, 2-bath sin-
gle-family home in a popular middle-class neighbor-
hood. The property hasn’t been remodeled in years,
and we’re getting it at a great discount. Well remodeled
homes in this neighborhood are selling on average for
$300 per square foot, and the average days-on-market
is less than 30 days.”
That is an example of a well-articulated and simple
description of an opportunity that could be delivered
like a 30-second elevator pitch at a networking event
attended by people with money. It’s short and to the
point, and it demonstrates your knowledge of the mar-
ket. But answering this question in the mind of your
prospective private lender goes far beyond the specific
deal. In developing your answer to this first question,
your lender is going to want to know things such as:
Who are you?
What is your background?
What is your real estate experience?
Can I see examples of your previous work?
How well did it go before?
Providing your background, history and experience
lays the foundation of your credibility, and answers the
silent question, “Why should I listen to you?”
2. hoW MuCh Money
Do you neeD?
Answering this question involves your detailed budget
for the opportunity. You also might present more than
one scenario for how your prospective money partner
can be involved. There are many ways to structure the
way they might participate. Is it a loan? Is it an equity
investment? Will you be using other capital in addi-
tion to your private lender? Are you putting some of
your own money in? Will you be using leverage (hard
money)? While you don’t want to over-complicate or
overwhelm a prospective lender with too many choices,
understanding that there are many ways to structure a
deal will help you to adjust your parameters based on a
specific lenders’ preferences and comfort level.
3. hoW MuCh Can i MaKe?
How much you offer to pay your private lender will
normally depend on a number of variables, including
whether you offer collateral in the form of a mortgage
or deed of trust on the subject property or if you offer
an equity membership in an LLC formed to acquire the
property. Will you be offering payment in the form of
a loan (interest) or will you be sharing the profit (or
both)? If you are sharing the profit, what is the split?
Learn from the Top Real Estate Educators in the Country in the
Convenience of Your Own Home. Our interactive learning portal
will give you the tools you need to succeed. Visit us today.
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In answering this question completely, you should in-
clude both a best case and worst case scenario.
4. When Do i get
My Money BaCK?
If you are planning to buy, fix and flip a property, then
your exit strategy – how you will repay your private
lender – is fairly straightforward. You will pay him
back at close of escrow when the property is sold.
What if you want to propose that your partner invests in
more than one project at a time, or re-invest his profits
from one project into another? What if your plan is to
acquire rental property to hold long term?
Part of your budget should include a timetable that,
like above, has a best case and worst case scenario.
Showing that you have considered that the unexpected
might happen makes you look more professional. Also,
keep in mind that it’s always better to under-promise
and over-deliver and the other way around.
5. What haPPens if you
get hit By a Bus?
While you want to have a plan in place in the event
that you do in fact get hit by a bus, the bigger point
of this question is to address the concern about what
happens if things go wrong. What are the risks? What
safety and security features have you built in to your
business model? What protections are you proposing
to prevent or to reduce the prospect of a loss to your
investors’ principal? This is the area that many real
estate investors either skip or downplay. Addressing up
front these issues actually makes you look professional
and shows that you have considered all possibilities
and have planned for them. Optimism is important,
but appearing to have blind optimism can work against
your goals.
These five basic questions present a foundation of
an effective presentation that will weave together your
story, the opportunity, and your promise in a way that
impresses, creates confidence and that will attract capi-
tal to you in a big way.
Mark Hanf is president of Pacific Private Money Inc.,
a California-based hard-money lender who has raised
over $150 million in private capital since 2009. His
eBook, “Insider’s Guide to Attracting Private Money”,
is available at www.AttractingPrivateMoney.com.
Attract Private Funds for Deals
the 5inVestoR Questions
by Mark Hanf

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R
eal estate investing, more often than
not, is a solo activity. That being said,
you just can’t learn it all from books
and you can’t do it all without help
from others. Co-workers, or people to
provide support, a listening ear and
to help with some of the work, can be hard to find in
this industry. Without online, print and community
resources, many of us investors would be on our own
as we try to navigate through the industry’s some-
what choppy waters. Those who are new to invest-
ment often find themselves with too many books
and too few human interactions. Joint ventures are,
therefore, common in the real estate industry and are
a natural way for serious investors to find co-work-
ers, support and greater successes.
We found two business partners who. though they
live far apart, are breaking the mold; their combined
experiences and investment talent bridge the dis-
tance, making it possible for them to craft successful
deal after successful deal. Partners Anthony Patrick
and Duncan Wierman believe that when it comes to
creating wealth, distance is just distance - nothing
more. They each bring a different set of top skills to
the investment table (or, in their case, bus), combin-
ing their talents to lead others safely through a very
profitable (and, on the flipside, very risky) world of
real estate investments. Their joint education venture
is the Flipping Houses Tour Bus, and it stands apart
as a truly creative way to get new investors to close
the books and enter the investment lab where they
can really start applying some of the principles
they’ve learned. When the rare opportunity to meet
up with these two very busy investors popped up, I
had to bite. I wanted to learn first-hand about their
latest venture and, of course, to get an inside look
at how these tycoons land deal after deal in one of
the most competitive markets in the world: Southern
California.
We explored their innovative approach to tak-
ing investing concepts out of the books and theory
and into real-world applications: Flipping Houses
Bus Tours. It’s a time to close the books and hit the
streets. On the tour, Anthony and Duncan are expert
hosts that break down just what they do and why:
their methods, their reasons, the key strategies they
employ to get the impressive results they continue to
yield.
THE INVESTMENT LAB:
Hands-On Learning with
Anthony Patrick & Duncan Wierman
FSBOs (for sale by owner) and out-of-state owned homes in
which vacancies and repairs are starting to cause real hassles
for owners who are likely considering a way out. Anthony
also adds, “Probate is our niche.”
What, exactly, do these two savvy investors do? Where
do they fish for their amazing deals? Is it foreclosures, short
sales, auctions, or what? Anthony explains, “REOs, Short
Sales, FSBOs, deals on the MLS and internet leads.” What, I
want to know, do Anthony and Duncan’s students walk away
with after completing a training program? Are they experts
in everything - or is it more of a survey course?
Duncan shakes his head and explains, “This is a true,
‘hands-on and step-by-step’ experience. There is no better
way to learn than having us and our power team there to
‘hold your hand’ every step of the way.” Students in Duncan
and Anthony’s workshops preview deals, are introduced
to projects the two have already run the numbers on, and
then are taught those little tricks all of us, in any profession,
know that can make or break our success. Students learn
how to find coveted hidden deals on the web and how to find
motivated seller leads with internet marketing methodolo-
gies.
I asked Anthony to give us a run-down and overview on
Because Anthony and Dun-
can realize that action learning
is longtime learning, they have
you participate in the process
while they watch alongside you
and guide you toward a decision
making strategy you can use
time and time again. Anthony
commented, “We are confident
that when you leave us at the end
of the workshop that you can
duplicate what we taught you to
do, so you can create financial
success in your life.” It’s an ex-
clusive opportunity for investors
who have been there, done there
and are tired of reading the same
books and listening to the same CDS over and over again;
it’s for, Duncan says, those “who are ready to finally take
action and learn “hands on” from people who do this
every day.”
What were the driving forces that brought Anthony
and Duncan to the same literal, and metaphorical, bus?
According to Anthony, “between the both of us, Duncan
and I have over 25 years of experience in the art of in-
vesting. From marketing, deal evaluation, rehabbing, and
most of all, giving the most value and knowledge for our
students.” There isn’t anything these two guys haven’t
done - and well. As Duncan succinctly put it, “because
of our success in this business, we have decided to join
forces to teach people hands-on instead of theory.”
What do Duncan and Anthony’s students learn from
Duncan and Anthony? Simple strategies that yield big
ROI’s. For example, Anthony says, “we look for below-
market homes on the MLS because if we don’t, we could
miss out on a gem – homes with opportunities to create
their highest and best use. Most investors aren’t doing
this simple search!” They know where to find motivated
sellers: they teach students to target those much coveted
REIWEALTHMag.com
Be Sure to Read
REI WEALTH Monthly
Co-publishedbyRealty411
Continued on pg. 19
by Hannah Ash

INCORPORATING:
ENTITY SELECTION
I
f you decide to incorporate,
an important decision you’ll
need to make is which entity
to select for your business.
Generally, your choices are
C-Corporation, S-Corporation, or
LLC. Each entity has its upsides
and downsides. The selection of the
entity is determined based upon the
business activity and the individual’s
goals. An understanding of the key
differences between the three typical
entities should help in this decision
making process.
C-Corporations are unique in that
they are taxed on the corporate
level. This means, if any net profit
is reflected on the corporate level,
tax will be assessed based upon the
taxable income. Furthermore, no
self-employment tax is reflected on
the corporate level. Additionally, C-
Corporations can adopt a fiscal year
end that allows the corporation to
operate on a 12 month cycle that does
not end in December, which is typi-
cal for most entities. C-Corporations
also have the ability to deduct medical
expenses as a line-item deduction.
s-Corporations differ from C-Cor-
porations in that they are consid-
ered “flow-through” entities. This
means, the profit or loss generated on
the corporate level is passed back to
the Shareholders of the corporation,
based upon their percentage of owner-
ship, where the profit or loss is re-
flected on the shareholder’s personal
tax return. Secondly, S-Corporations
are exempt from self-employment tax.
The caveat is, Officers of S-Corpora-
Take the Next Step in Growing Your Venture by Making It Official
Nothing says you mean business more than the right entity structure,
it may also help to reduce income taxes & shield personal assets.
BUSINESSBUSINESSBUSINESS INC.INC.INC.
tions must be “reasonably” compen-
sated as employee of the company.
Therefore, a W2, subject to payroll
tax, must be issued from the corpora-
tion to its officers to remain in com-
pliance. Reasonable compensation
has been established through court
cases as approximately 40% of the net
revenue generated by the corporation.
llCs (limited liability Company)
are similar to s-Corporations in
that they are “flow-through” enti-
ties. Where they differ is treatment
of net profit. Shareholders of LLCs
that are considered general partners
are subject to self-employment tax on
100% of the ordinary income gener-
ated by the business. Additionally,
in order to file a separate tax return
as a partnership, an LLC must have
2 or more members. If this require-
ment is not met, the LLC is consid-
ered a disregarded entity, meaning,
its business activity would be
filed on the shareholder’s personal
tax return as a Schedule C, like a
sole-proprietorship. That said, the
single-member LLC is a glorified
Schedule C, with the addition of
limited liability.
When coming to the decision of
which entity fits best, it is highly
recommended to consult a tax pro-
fessional to assist in this decision.
If the proper entity is selected
from the beginning, the transi-
tion from sole-proprietorship is
a smooth and easy one. One key
component each entity has in com-
mon are filing fees. California
will assess a filing fee of $800 per
year until the entity is dissolved.
It is therefore, advisable to set up
an entity when one intends to use
it. This can otherwise become a
very costly thing, unnecessarily.
LIMITED LIABILITY CO. LIMITED PARTNERSHIP S CORPORATION C CORPORATION
All managers and members (owners)
of a limited liability company have lim-
ited liability (up to amount invested).
Decisions in a limited-liability company
may be made either by the managers,
members, or both, depending upon the
provisions outlined in the Operating
Agreement.
LLCs are not required to pay income
taxes. The members must report their
pro rata share of income, whether it
is distributed or not. However, an LLC
may elect to be taxed as a corporation.
EDITORIAL COURTESY OF:
ROBERT HALL AND ASSOCIATES
Stockholders have limited li-
ability; officers and directors
can be held personally liable
for some corporation obliga-
tions.
Management decisions in
an S Corporation are usu-
ally made by the officers and
directors of the corporation.
S Corporations are not re-
quired to pay income taxes.
Each shareholder must re-
port their pro rata share of
income, whether distributed
or not.
Stockholders have limited li-
ability; officers and directors
can be held personally liable
for some corporation obliga-
tions.
Management decisions in a
C Corporation are usually
made by the officers and
directors of the corporation.
C corporations must pay
income taxes on any gain
or profit. If money is distrib-
uted in the form of
dividends, the shareholder
must pay a second tax.
All managers and members (own-
ers) of a limited liability company
have limited liability (up to amount
invested).
All management decisions involv-
ing limited partnerships are made
by the general partners. Limited
partners who become engaged
in management could become
personally liable for partnership
obligations.
Limited partnerships are not re-
quired to pay income taxes. Each
member must report their pro rata
share of income, whether distrib-
uted or not.
TAXESMANAGEMENTLIABILITY
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vacancy rates and values poised to appreciate over
time. Factors such as transportation, schools with
great academics or sports (a consideration in Texas)
programs, and higher than average monthly incomes
are part of what Pam’s team looks for. An excellent
property manager has your best interests in mind and
will be able to guide you toward great buys that help
you grow your portfolio over time.
your Property Manager saves you Money
Property managers can keep money in your wallet.
Property managers are in the position to find small
problems before they - literally - explode. For ex-
ample, a highly-trained management team like Pam’s
can drive up to a property and spot a duct issue before
it backs up and causes a more expensive problem to
develop. When work is needed, fantastic property
managers work with fantastic vendors who do great
work for great prices.
your Property Manager: your eyes & ears
Texas, Pam notes, has a great market and is very land-
lord friendly: as a result, she has a lot of out-of-state
investors under her fold. Long-distance investors sim-
ply can’t walk their properties and perform interior
inspections; your property manager needs to be your
eyes and ears. Pam’s team walks each property on a
monthly basis and performs an exterior inspection;
interior inspections are conducted twice a year.
your Property Manager Communicates Well
Great property managers know how to keep their
clients in the loop. Pam’s team prepares and sends
clients monthly reports that include detailed finan-
cials, relevant photos, market reports and expenses to
keep them on top of the latest with their property or
properties. “Investors deserve to know what’s going
on with their investments,” Pam says.
your Property Manager Keeps your Property
Rented
Property managers know how to find credit-worthy
tenants - and they have a process for doing so. Be-
yond finding credit-worthy tenants, property manag-
ers should begin marketing an apartment as soon as
they find out it will be available - not once it’s empty.
Reducing vacancy rates is a key part of the job, Pam
says - and her team works hard to make sure their
properties are rented. Beyond ensuring a property is
rented, property managers need to keep abreast of the
current market changes and make recommendations
for rent increases when appropriate.
An investor herself (Pam is currently working
toward building her children’s trust), Pam knows
what investors need and deserve from their property
management team. Her company, Professional Asset
Management and Sales, offers investors a full-service
experience. Pam Blanco doesn’t want to put her name
behind managing a property she doesn’t think is a
good value - so she has a team of researchers on the
case.
The research arm of Professional Asset Manage-
ment and Sales scouts out the best properties in
neighborhoods that offer tenants the amenities they
want (i.e: schools, transportation) and gives investors
the stability they crave. Pam’s proactive manage-
ment team walks every single property they care for
every single month. A quick glimpse at her company’s
website reveals a multi-channel approach to property
management: PamTexas.com has everything from
featured listings and utility info to online rent pay-
ment processing. Systems for management are what
sets a great property manager apart from a good one.
Systems should be in place, Pam implies, for every-
thing from finding new properties for her investors to
finding new tenants. Clearly, Pam Blanco has systems
in place that are blazing a new path for other property
managers to follow.
Property Management Tips from PamTexas.com, pg. 6

Attracting
PRIVATE
MONEY
Lenders
J
ust a few short years ago,
many real estate investors
were unaware of private
money.
More recently, private money has become fa-
miliar in almost all real estate investor circles.
Private lenders can be a great source of busi-
ness growth. Unfortunately, there is currently a
lack of good quality information about private
lending, which is why I wrote a book about it.
Let’s first clarify what I refer to as private
money. Private money is monies that you ac-
quire from any private individual. Private mon-
ey is not institutional money, hard money, or
money from a lender that is in the business of
lending money. Private money lenders (PMLs)
are individuals that have the funds available to
invest in any vehicle they see fit, and they often
find that vehicle to be you and your real estate
portfolio.
No matter your exit strategy - flipping, buy
and rent, owner finance – private money can
help you create lasting wealth. Arrangements
can be structured for financing only or equity
shares. Sometimes a combination of both can
be beneficial. For example, let’s say your PML
will loan you one million dollars to buy rental
properties, but they want some equity. Perhaps
you would find it favorable to pay your PML a
7% note rate and give them 50% of the equity
above purchase price and make ready costs. In
return, you would collect a management fee to
manage the properties and also benefit from all
the earned equity from principle payments as
well as 50% equity above purchase price and
make ready costs.
Attracting private money involves much
more than telling someone that you can give
him or her a certain return on a safe investment
in real estate. It’s more about you and how you
conduct your business, structuring what you do
in a way that is inviting to others. PMLs want
to do business with someone that they trust,
have confidence in, believe in, and enjoy work-
ing with.
You do need to be an expert in your business
and your field of practice. Whether you plan to
flip or buy-and-hold rentals, you need to know
the questions to ask about the properties you
look at. Property analysis is extremely impor-
tant to PMLs, and you should have a way to
analyze every deal from multiple exit strategies
so that you are comparing each deal as similarly
as possible. It’s up to you to know the property
values in your area and understand how to pull
accurate comparable sales and leased proper-
ties. Know the rehab costs of projects in differ-
ent price ranges and exit strategies. Understand
how to efficiently hire and work with contrac-
tors. People and property management skills are
important, as is keeping all that you are doing as
organized as possible.
Practicing profitable habits is important to at-
tracting PMLs and their money. To maintain your
business acumen you should be in a constant state
of education. The more you know, the better you
can communicate, and the better you can com-
municate, the more money you can raise. There
are plenty of real estate topics to choose from on
Amazon, you can go to seminars, attend inves-
tor club meetings, and even view webinars from
your home office. Take some time to learn about
personalities and communication styles. Be the
realistic optimist, plan for the worst but hope for
the best.
PMLs want to work with someone that is
working hard to build their business and willing to
do what it takes to succeed, even when it requires
a great deal of discipline or restraint. Handle your
business professionally and in a timely manner.
Do what you said you would do, and do it on time.
You should be out beating the trees and shaking
the bushes to see what pops out. By doing so you
will create activity and get the attention of PMLs.
Producing income will make you attractive to
PMLs though it is not a requirement. Whether
you have a full-time job or income from your cur-
rent real estate business, use that to your advan-
tage when talking to potential PMLs. Producing
income shows the stability of your business and is
a testimony to your expertise. When starting out,
the quickest way to produce income in your real
estate investment business is to start wholesaling.
Not only does this provide you with income, but it
will help you to become familiar with the market
and values, which all makes you more attractive to
PMLs.
Targeting high-wealth PMLs will be most
beneficial. High-wealth PMLs are those that you
believe have the funds to invest one million dol-
lars with you. The fewer PMLs you work with
the easier it will be to operate your business. In
your pursuit of high-wealth PMLs, you will find
others with smaller sums that want to invest and
you should be happy to oblige. Small sums can
come in handy to use as second liens when you
are financing your first lien with a bank.
No marketing is required to get all the private
money you need, only networking. Start with
your sphere of influence and the people you know.
Tell them how great real estate is going for you
and how you have individuals loaning you money
and earning them 10%. Invite one PML prospect
to lunch every week, and you will find private
money. It may take 6-12 months, but nothing
worth having comes easy. Don’t expect to get a
firm commitment but if they seem interested
begin sending them properties that you plan to
acquire. It is a good idea to have a presentation
manual that you can show or email to prospec-
tive PMLs that discusses you, your business,
and how you structure your loans. Include a
short video showcasing a few of your best proj-
ects in different price ranges. You should also
take the time to understand estate planning, tax
implications, and finance. High-wealth PMLs
have a good understanding of those topics as
they work to preserve their estate.
Private money lenders are people from
all walks of life. They are often humble and
conservative, past their years of working long
hours, and enjoy putting their money to work
for them. PMLs working with real estate inves-
tors are a rare instance where two individuals
in different stages of life can help each other
achieve their goals in an incredible way, bring-
ing forth a profitable business and personal
relationship.
by John Pribble
John started his real estate career in 1999
at the age of 19. In 2000, John got his
real estate license and today is a real es-
tate broker. He has practiced many differ-
ent strategies in his real estate business
depending on market conditions. John
has experience in wholesaling, rehabbing,
subject-to, owner finance, rentals, short
sales, foreclosures, brokerage and cli-
ent representation, property management,
and working with banks and private money
lenders. When his rehabbing business be-
gan to grow John found it beneficial to uti-
lize private money. As the market changed
he shifted to more of a buy-and-hold strate-
gy buying rental properties. Private money
and local bank financing became a great
resource as he accumulated more proper-
ties. John has learned many important les-
sons from working with private lenders and
their funds in his business. A great deal of
effort has gone into marketing, lead track-
ing, management, and developing systems
for a smooth and successful operation.
He also works to maintain a balanced life,
remaining focused on family, friends, and
enjoying life through activities such as net-
working with others, climbing mountains,
and spiritual growth.
For more information, visit:
www.johnpribble.com/about-john

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the median cost of housing
for the geographical area
where the property is locat-
ed. With the state coming out
of its worst recession and
values continuing to rise, this
is an absolutely great time
to fix and flip your next deal
with ZINC Financial.
Question: Can you de-
scribe a profile of who your
ideal investor client is?
ZINC: Most of our borrowers
are entry-level or moderate-
level real estate investors.
Most are knowledgeable in
real estate investing, and
they are very well informed
in the community where
they live. Most have at least
some exposure to real estate
or construction and they all
have some money to work
with. ZINC requires a down
payment of at least 15% so
having some capital to work
with is a must. ZINC typically
shies away from the true nov-
ice who has not done signifi-
cant homework on this trade,
or whose complete exposure
to this segment is a weekend
guru seminar on how to get
rich quick. So, if you have
some exposure to this field,
have some working capi-
tal, we at ZINC are ready to
partner with you on your next
fix-and-flip or rental property
transaction.
Question: What are your
company’s goals for 2014?
ZINC: Currently ZINC is con-
sidered a boutique lender
for fix-and-flip financing.
Our goal is to provide reli-
able, quick and easy funding
for our investors. Reliabil-
ity is key, as investors rely
on this capital to fund their
deal when they just placed
a non-refundable deposit.
Quick funding is important,
because owners of dis-
tressed properties will not
wait months for funding, and
finally, ease is important, as
we do not mandate all of the
strict lending guidelines re-
quired by most banks.
ZINC is the premier lender
for fix-and-flip and rental buy
-and-hold properties located
in California or Arizona. We
can fund loans with our own
capital in less than 10 days.
Our service sets us apart;
we are reliable, quick and
easy for our funding process.
Contact us today at 559 326
2509 or visit us on the web at
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Q & A with Zinc Financial, pg. 10 Hands-On Learning with Anthony and Duncan, pg. 15
how a typical tour with goes. He explained it’s run like a lab, chock
full of real-world applications. “On our tour you can expect to learn
how to set up your team, how to find and work with a REALTOR®.
You will discover how to find a deal, how to find comparable proper-
ties. We will explain the ARV (After Repair Value) and figure out
if a property is a fix and flip or a buy and hold. We will talk about
wholesaling as an exit strategy for the deals you pass on. The whole
class also visits a local Home Depot store and we go over materials
needed for a typical rehab. It’s a jam-packed tour because we also
visit numerous houses: one under construction, one in the middle of
construction, and a finished home in escrow. We also see a couple
of deals that we have yet to see ourselves and go over them with our
students. We teach what to look for and whether an offer should be
made or not. Lastly, we wrap it all up from start to finish and go over
how we can get deals accepted.”
Duncan and Anthony are clearly more motivated by their love
of real estate than of wanting to turn education into a big business -
they keep course registration fees refreshingly low - with a three-day
tour only costing only $197 for everything. As they’re usually busy
making deals for their own portfolios, these workshops don’t happen
all that often. Duncan comments, “We host them only three
times a year, and we do limit the number of people who can
participate because we want to really give personal attention.”
The results students take home of working with these
two pros at the top of their game? Anthony says the proof is
in the pudding. Students, they say, will be ready to do their
own rehabs after the tour - or whatever else they want to try.
Anthony explains, “This is a step-by-step event with a simple
road map for each person who wants to learn not just rehabs
but everything in real estate.” Their coaching students can
use them, and their power team, for future deals if they choose
to. “We want our coaching students to use our power team so
they can get a deal done fast. Our track record is phenomenal,
nearly 80% of students have a deal in their first 60 to 90 days!”
Duncan and Anthony want to help others find some of the
success they have, doing what they love. A love of the craft of
investing is what motivates these two proven investors.
For more information, please visit:
http://FlippingHousesBusTour.com

CashFlow Resources
The publication is available on their home page
http://Realty411guide.com
neW: BReaKing MoRtgage neWs
Reiff broke the news of this exciting new mort-
gage product for Realty411 readers in our interview
FirstKey is now offering an acquisition-bridge
loan product designed to enable the acquisition,
rehab and renting of single-family rental portfolios.
Buy-and-hold investors can use these loans to
acquire distressed property, renovate and roll per-
forming rentals into attractive long-term permanent
financing with only one set of closing documents.
Besides perhaps being one of the most enticing
loan programs to come to market in this space, Reiff
points to the specific benefits of flexibility, effi-
ciency and cost savings of this type of loan, which
preserves profit and gives investors an edge in the
market.
ingenious loans foR
sMaRt inVestoRs…
FirstKey clearly offers some progressive financing
solutions, positioning the lender as the vanguard of
the new mortgage capital landscape.
Still, Reiff says innovation is in the blood of First-
Key, which is committed to constantly optimizing its
current products and creating new programs to meet
the needs of its customers. “Entrepreneurial borrow-
ers value flexibility, whether they own five proper-
ties or 5,000,” he said. “We are proud to be a market
leader in tailoring products to their unique needs.
We recognize the importance of excellent service
and are highly focused on delivering just that. It’s
not enough to simply offer debt solutions. We also
need to ensure that our customers are comfortable
with the process and can choose a product that is
best suited to their needs.”
Surely there will be more to come. Want to know
what FirstKey can do for you? Check them out
online, or, Reiff suggests, “Bring us your portfolio,
and let us help evaluate your options.”
FirstKey Lending Offers Unique Options, pg. 1
Randy Reiff, CEO
of FirstKey Lending
Have a
GREAT Day!

Have you
ever done
business
with this
guy?
Pitbull’s 33rd National
Hard Money Conference
Thursday June 5, 2014 The M Resort in Las Vegas
See why industry experts say this is
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 Ask questions of our panel of experts. Find new funding sources.
 Continental breakfast in the morning and cocktail reception in the evening.
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Questions? Just give us a call at
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Yeah, he’s the lender who promises low rates and terms, but never closes your deal. He’s also the guy who
asks for upfront money just to "look" at a deal, but doesn't return a phone call. You know, the guy who promises
everything, but never delivers. Avoid having to deal with “this guy” by establishing relationships with reputable
lenders, industry service providers and experienced brokers. A solid network is key to finding success in our in-
dustry. You have to know who to call—and for which deal. Make these powerful connections by joining us at
Pitbull’s 33rd National Hard Money Conference and maybe, just maybe you will never have to do business with
“this guy” again.

anchor loans
4Issuesfor$19
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estate sales agent in California who referred millions
of dollars in referral business to brokers around the
country. Subscribe today! You may also call us anytime
for a referral, question, comment or concern. We are
here for you: 805.693.1497
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Join Us at Our National Expos
Left to right/clockwise: The Real Wealth Network Team in San Jose, Calif.; Real estate industry leader Kent Clothier delivers an opening
speech at the San Diego Real Estate Expo; Mark Thomas, Reesio, founder and CEO, gives our events a thumbs up! Carl Schiovone and his
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by Jay Butler
T
he Equity Recovery Program works for
you and not the bankers! Holding real
property in your individual name provides
no asset protection whatsoever and, upon
selling the property, causes you to pay
the maximum amount in capital gains tax and state
taxes. Plus, most real estate ‘business deductions’
are not deductible for an individual filing a 1040
tax return. Your silent partner (the Internal Revenue
Service) will love being in business with you as they
take 30% to 40% of your hard-earned money from
the sale of your property in taxes. Sadly this is the
reality for over 50% of all escrows in the United
States, but it doesn’t have to be that way for you. By
employing the Internal Revenue Code (IRC) Section
351-Transfer when selling your property, you can
legitimately eliminate state tax and federal capital
gains taxes. Our nationally recognized (and patent
pending) Equity Recovery Program increases your
net earnings from the sale of a property by more than
15% to 20%.
shoRt-teRM CaPital gains taX
Properties held for 365 days or less are considered
‘short-term’ and are taxed at your ordinary 1040
income tax rate if the property is owned in your per-
sonal name or an entity that is a pass-through entity
such as an “S” Corp, LLC (filing a 1065), LP or Sole
Proprietorship. Taxes are paid at the 1040 tax rate on
those gains of anywhere from 10% to 39.6% for the
year 2013.
This could be a real killer should your taxable
gain, plus any other 1040 income, push you into the
higher tax brackets.
long-teRM CaPital gains taX
The following tax levels are known as ‘long-term’
capital gains and apply to property that you hold for
more than 365 days (more than one year). Long-term
capital gains tax rates depend on which ordinary
income tax bracket you fall under.
0% if in the 10% or 15% tax brackets
15% if in the 25%, 28%, 33%, or 35%
tax brackets
20% if in the 39.6% tax bracket
In both ‘short-term’ and ‘long-term’ capital gains tax
cases, there are no allowable deductions that you may
‘take’ in order to reduce your personal capital gains
tax liability other than capital improvements and sell-
ing expenses such as commissions, closing costs and
inspections. Please note that short and long term capi-
tal gains taxes do not apply to any “C” Corporation or
LLC filing an 1120 tax return. The “gains” from such
a sale are considered ‘ordinary business income’ if the
said entity is in the real estate business.
iRC seCtion 351
The Internal Revenue Code, Section 351 was insti-
tuted in 1921 and can be found under Title 26, Subtitle
A, Chapter 1, Subchapter C, Part III, Section 351.
It wasn’t widely used until Congress provided relief
from its previously burdensome provisions in the
Miscellaneous Trade and Technical Corrections Act
of 1999, which for the first time allowed 351 transfers
that included liabilities such as a mortgage. Before
that date, 351 transfers could only be undertaken with
unencumbered (or fully-paid) properties.
351 tRansfeRs
The government will assist people interested in ven-
turing into business for themselves by allowing them
to utilize previously owned assets to ‘fund’ their new
business venture. The IRC refers to this as a ‘capital
contribution’. The IRC further states categorically that
in order for a transfer of real estate to a corporation to
be tax-free, there must be a verifiable business reason
for the transfer. Source of funding, necessary to under-
take business, is in large part based upon the entity’s
‘business purpose’ such as the acquisition and selling
of real estate.
The Equity Recovery Program is a process whereby
a “C” Corporation is specially drafted for the property
owner to exchange the ‘basis’ of the property for the
stock of the corporation. Once transferred, the stock
becomes ‘valued’ at the same basis that the property
was valued prior to the transfer. When the corporation
sells the property, the ‘code’ considers the income as
ordinary income of the corporation and not as a capital
gain of the corporation. Thus, the Equity Recovery
Program (which utilizes a 351 transfer) eliminates
federal capital gains taxes when the property is sold.
And, by having formed the corporation in a tax-free
jurisdiction such as Nevada, the property owner can
eliminate state taxes as well.
oRDinaRy inCoMe
Ordinary income is the income generated during the
‘ordinary course’ of a company’s business activities.
For example, a new car dealership purchases cars
to sell. The Internal Revenue Code considers these
cars ‘inventory’. When a car is sold, the income de-
rived from the sale is commingled with the income
derived from servicing the cars and the parts the
dealership sells for the cars. This income is never
considered capital gains. This is a very important
concept to understand as its application is equiva-
lent to that of business whose ‘business purpose’ is
the purchasing and selling of real estate.
Should the corporation not have enough write-
offs to eliminate its taxable income all together,
the corporation would be required to pay taxes on
the net amount remaining at the end of the tax year,
if any. In other words, should the corporation not
‘spend’ all its income on allowable business expens-
es by the end of its fiscal calendar year, the remain-
ing net taxable income would be taxed at the
corporate level. It is important to remember
that “C” Corporations invariably pay less in
taxes than do individuals filing a 1040, LLC’s
filing a 1065 or “S” Corporations filing an
1120-S on incomes up to $250,000.
351 tRansfeR ReQuiReMents
IRS Code Section 351 states that no gain or
loss is recognized by either the contribut-
ing shareholder or the recipient Corporation
if three conditions are satisfied. Assuming that the
transfers having a bona fide ‘business purpose’ in
real estate, the said conditions are:
1.) there is a transfer of property (and not ser-
vices)
2.) solely in exchange for corporate stock, and
3.) after the exchange the contributing
shareholder(s) is (are) in control of the corpo-
ration (i.e. own at least 80% of the voting and
outstanding stock).
Contributions by several shareholders may be ag-
gregated in determining if the 80% test is satisfied,
provided that all contributions were part of a single
integrated transaction to form the business. Note
that contributions of cash or property in return for
long-term debt (e.g., bonds) do not qualify for a
Section 351 transfer treatment.
“No gain or loss shall be recognized if property
is transferred to a corporation by one or more per-
sons solely in exchange for stock in such corpora-
tion and immediately after the exchange such person
or persons are in control of the corporation.”!
– IRS Regulation §1.351-1(a)(1)
If all Section 351 conditions are met, the trans-
action is treated as though ‘nothing happened’ in
that no gain or loss is recognized. The basis of the
shareholder’s stock equals the basis of the property
contributed, and the basis of the property to the cor-
poration equals the contributing shareholder’s basis.
Please contact our offices for more information on
the Equity Recovery Program and to schedule a
private consultation and learn how to lawfully avoid
paying any capital gains tax on the sale of your next
property, http://AssetProtectionServices.com
LawfullyAvoid
CAPITALGains
Before selling a property, be
sure to plan ahead to avoid
capital gains taxes. Leave
more proﬁt in your pocket
with these simple steps.
IRS Code Section 351 states that no gain or
loss is recognized by either the contributing
shareholder or the recipient Corporation if
three conditions are satisﬁed.

Lawfully Avoid
Capital Gains Tax
State Tax and
Self-Employment Tax
While Receiving
15% to 20% More on the
Sale of Your Properties!
AssetProtectionServices.com
Damian BartonDamian Barton
President
Mobile: (702) 425-4143Mobile: (702) 425-4143
Skype: RocketFizzSkype: RocketFizz
Damian@AssetProtectionServices.comDamian@AssetProtectionServices.com
Jay ButlerJay Butler
Managing Director
Mobile: (702) 997-3260Mobile: (702) 997-3260
Skype: AssetProtectionServicesSkype: AssetProtectionServicesSkype: AssetProtectionServices
info@AssetProtectionServices.com
Dr. Robert HagopianDr. Robert Hagopian
Chief Executive OfÞcer
Mobile: (702) 430-9550Mobile: (702) 430-9550
Skype: Robert.HagopianSkype: Robert.Hagopian
Robert@AssetProtectionServices.com

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