Christian Yepez and Ruth Ortiz are real estate investors in Southern California known as the "Property Flip Pros." They credit their success to years of real estate education and having a team that helps find, fund, and complete deals. They make many offers on distressed properties and are able to profit from flipping homes month to month. The article provides tips from Yepez and Ortiz on how to find deals and make offers in the competitive Southern California real estate market.

1. Ca$hFlow
EXPRESS
No. 1 / Vol. 2 2012 Passive Income for Today & Tomorrow FREE
Chris & Ruth
California Property Flipping Experts
Share their Secrets on how to rehab and flip properties
for Big Profits in this great Foreclosure Market
in the Southern California Area.
BEFORE AFTER
Rehab Tips by the Southern Find Money
California ‘Property Flip Pros’ for Deals...
By Ginger Macias
By Linda Pliagas nars and bootcamps together since
www.OCWholesalers.com
www.Realty411Guide.com 2005). They also acknowledge their
H
team consisting of personal and vir-
I
ow would you like create
t’s not easy to be a flipper in tual assistants, private investors, hard
your own “Money List”? I
Southern California. The prices money lenders, and other real estate
have one, and every success-
are steep, the competition fierce, brokers.
ful real estate entrepreneur I know
and the deals are few and far between. “We have a lot of real estate agents has one. Your money list is simply
Yet, professional rehabbers Christian and brokers who bring the deals to your list of customers who will do
Yepez and Ruth Ortiz not only find a us because they know we are serious business with you on a consistent
way to make it work, but they profit all-cash buyers,” Ortiz says. “We also and profitable basis. This list is your
handsomely month after month. have personal and virtual assistants most valuable asset in your real estate
Known as the “Property Flip Pros,” who are looking for deals and submit- business. Without it, your business
Yepez and Ortiz credit their success on ting offer after offer.” will not flourish; with it your busi-
their many years of real estate educa- So many offers are made, that they
tion (they have been attending semi- Continued on pg. 9
Continued on pg. 4
INSIDE: How to Turbo-Charge Your Portfolio • PLUS: What Type of Investor are You?

2. Funding Available What Type
for real estate investors
of Investor
ARE YOU?
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occupied single family, multifamily, mixed-use residences, and challenged
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S
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The active investor sees something sexy
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ing in real estate seems to buy, and how much to pay
endless. But one of the is only the beginning. You
Cae$thFlow
ways you can cut this list still have to choose what and
EXPRESS down to size is to iden- how to rehab. How much
tify the type of investor you will do on your
you are. Each of own. What con-
us have a tractors will be
different hired to do
Passive Income for Today & Tomorrow FREE
tempera- what you
No. 1 / Vol. 1 2012
cont n s
Learn How to Create Stock
Market Wealth Today
5 Jump Start Success
Investors Manifest a
“Cashflow” Mindset
6 Cash Versus Cashflow
ment and
a style
won’t
can’t.
or
of decision This takes an aw-
1 Create Stock Market Wealth 7 Calculate Your ROI
By Doug Carver
Organizer Pasadena and Burbank
estate investing, trading stocks, building
a strong MLM business, etc. You will not
making. Often times this is the ful lot of effort. The streets to
I
Cashflow Meetup Groups succeed. It’s like trying to grow corn in
prosperity are littered with the remains
a field of sand. The seeds will not germi-
1 Have a Cashflow Mindset 8 The Nested Action Cycle
can remember my first time play-
ing Robert Kiyosaki’s Cashflow
nate and you’ll end up with next to noth-
ing to harvest in the fall.
difference between a successful invest-
board game about eight years
ago and how it
How, you ask, does this relate to the
Cashflow game? ment and a complete disaster. of those who bit off more than they could
2 Will Big Money Run Away?
started a chain Well, after playing
9
of events that continues
to this day. What stuck Investor Spotlight the game a bunch
of times, I learned One of the first things you should iden- chew. If you don’t believe me, just take a
tify about yourself and your personality is look at how many books, videos or educa-
with me most was not the the “how to” of
getting out of the
3 Six Tips for Faster Wealth
“how to” of playing the
10 Resource Directory
game but the people that
I met at the event. These
were not like the normal
rat race, but I still
was not able to
take what I learned whether or not you are a “passive” or an tional products you can buy all designed
from the game and
to teach you how to flip houses, perform
people in my life that
4 Focus VS. Diversification
By Tyrone Jackson
TheWealthyInvestor.net
companies and products with which
you are familiar. 11 Inside Our Expos
would tell me I was crazy Dougthe Cashflow gameChris Hanson dis-
for trying to start my own
play
Carver (left) and
to group members.
apply it to my real-
life financial situ-
“active” investor. Knowing the answer to
Yes! this will help you sort out the opportuni- renovations or market your property.
If you’ve ever opened a can of real estate business or ation. However, I
You can be Coca Cola on a hot summer day and that financial freedom was impossible realized that the time I was spending with
without a steady well-paying job. The my new Cashflow friends was changing
Being an active investor is definitely a
rich from
ties best suited for you.
felt refreshed and invigorated, why
owning real not own the stock? It’s a product you people I met were excited about learn- the way I thought about money and my
estate and trading stocks. know with a story you understand. ing and expanding their knowledge on financial future. I no longer viewed the
Our Goal is to Educate, Motivate & Inspire New Investors I’ve provided a little quiz to help you worthwhile pursuit if you have the time,
We’ve all heard the story of the When I say “a story you understand,” how to achieve financial freedom. They stock market as a giant rigged system for
little old lady who lived modestly I mean to say that you understand were active investors in real estate and losing money. I began to see the tremen-
and worked as a school teach- how the Coca Cola the stock market. They were small busi- dous opportunities in the sinking real es-
er for 40 years. She never
earned more than $35,000 per
Corporation makes
money, or to ex-
ness owners with a passion and vision
for creating more financial success in
tate market even as many people I knew
were losing money on deals that had gone identify the type of investor you are and energy and resources to develop the prop-
their lives. Overall, they had a mindset bad. Overall, I saw for the first time op-
what type of investment opportunities er expertise.
year, owned a modest home, press it in Wall
and shared her life with two Street terms, you for prosperity that I like to call a “Cash- portunities all around me to create wealth
FOUNDER
cats. Once she died, her rela- understand
PUBLISHED BY
how flow” mindset. even as the newspapers talked constantly
you should be looking for. Back to our quiz. If you consistently
tives discovered a $150,000 the company earns A lot of people complain that Kiyosaki of the “Great Recession.”
Linda Pliagas
Today as a result of my ongoing in-
life insurance policy and $1.5
million in stocks that she left Manifest Media Partners
revenue. The more does not provide the specific details on
how people should implement his strat- volvement playing and organizing local
chose the letter A, you are probably what
bottles and cans of
pliagas@msn.com
to the elementary school’s
scholarship fund.
Coke that Coca
ADVERTISING
Cola sells around
egies to create financial freedom in his
books and programs. Truth is he never
Cashflow events in Southern California,
I have a thriving real estate investing How do you change the oil in your car?
business. It was after speaking with one
Do you A) do it yourself, or B) take it to we would call a passive investor. A pas-
spells out a step-by-step “how to” for
EDITORIAL STAFF
The national media loves
to air these stories. It seems Manifest Media Partners
the world each day,
the larger the com- building long-term financial freedom. of my Cashflow friends who was a real
What he does teach is far more impor- estate investor that I was encouraged to
Lori Peebles
there are several old ladies
310.994.1962
pany’s profit. Over
sive investor is motivated by a completely
who fit this seemly unique
profile year after year. How could
the past ten years Coke stock (symbol tant, and that is how to create a “Cash-
flow” mindset. Kiyosaki describes it in
start wholesaling distressed properties. It
turned out to be a great decision. More a shop?
Isaac Newkirk III EVENTS & EXPOS
KO) has risen from around $40 per
his book Cashflow Quadrant moving recently, I’ve begun to learn how to suc-
If you were to play the stock market different set of values. The passive inves-
that be? share to a high of $71 — $1000 in-
Investing in stocks is not the vested in Coca Cola stock ten years your mindset from the E (employee) and cessfully trade in the stock market using
Stephanie Mojica
world’s most challenging task. In ago would be worth $4,100 today; Lawrence Ruano
S (self-employed) side of his Cashflow options. As a self-proclaimed real estate
would you A) look for a strong mutual tor may see the opportunities in real es-
fact, at its core, it’s very simple. The $10,000 invested in Coca Cola stock quadrant to the B (business owner) and “zealot”, I never would have dreamed of
COPY EDITOR
truth is that the stock market creates would be worth $41,000 today. Wendy Pineda
I (investor) side of the quadrant. In lay-
man’s terms, it’s the mental shift from
investing in the equity markets. Howev-
er, after playing Cashflow 202 with my
millionaires every year. Investing in If you spend more than $100 per
than you think.
Anita Cooper
stocks, with wealth in mind, is easier year eating fast food, why not own someone who seeks financial security at
TO REACH US, CALL:
the stock? Over the past ten years all costs to someone who can confidently
Cashflow friend ,who is an active trader,
and learning about his trading system, I fund, or B) look for and individual stock tate, but prefers to leverage the time, ex-
PHOTOGRAPHERS and knowledgeably take measured risks. was able to see the opportunity before
pertise, and resources of a professional
that you think has the potential to sky-
McDonalds stock (symbol MCD) has
310.499.9545
Invest In What You Know risen from a low of $15 per share to a This is a simplistic definition but a very me. I now fully expect that investing in
Sam Green high of $95 per share. important one to understand. Without the the markets will be a huge part of my fu-
Wanna be a good stock market in-
John DeCindis
vestor? Keep it simple and start with Continued on pg. 12
correct mindset, it really doesn’t matter
how much you learn the “how to” of real
Continued on pg. 2
ture financial success in addition to my
rocket? team/organization.
PRODUCTION DISTRIBUTION What are your investment goals? Do It isn’t that the passive investor is not
Personal Finance News from the Publishers of Realty411 Magazine - www.Realty411Guide.com
Lori Peebles Professional Distribution Solutions you want to A) slowly build a strong capable of flipping houses, or hiring con-
Augusto Meneses and KJ Banks: 805.377.6328
long-term investment, or are looking to tractors or marketing properties.
CashFlow Express is published in Santa Barbara County by Manifest Media Partners. ©Copyright 2012. All B) maximize your return as soon as pos- Let me be clear. It’s not my intention
Rights Reserved. Reproduction without permission is strictly prohibited. The opinions expressed by writers and sible? to paint one type of investor as more ideal
columnists are not endorsed by the publishers and/or editorial staff. Before investing in stocks, bonds, mutual
Do you A) enjoy learning and becom- than the other. Rather, the passive inves-
funds, gold, other securities and commodities and/or real estate, seek the advisement of a trusted financial ad-
viser, attorney or tax consultant. Investing in any asset and market sector is risky business and may result in loss ing an expert, or do you B) prefer to find tor has a different perception of the value
of capital. Please invest responsibly. PRINTED IN THE USA ~ GOD BLESS AMERICA professionals and rely on their advice? of their time. He or she may not have the
Connect to our virtual network ~ Search for us here: What type of property are you looking time to devote to the process. Or, they
for? A) One that needs a lot of work, or may have the time, but feel that being a
B) one with that needs little attention at decision maker about the investment is a
all? much more valuable use of their time than
If you consistently chose the letter B, actually participating in the process.
you might be what we consider an Active Continued on pg. 5
CashFlow Express • Page 2

3. Decrease Your Tax Liability
Tips from Robert Hall & Associates By Stephen Hall, E.A.
E
veryone needs to file a tax return. However, however we are not attorneys and recommend advis- tors who do rent-
are you maximizing your deductions while ing a reputable attorney to plan a strategy unique to als, management,
limiting your tax liability? Throughout the your situation. rehabbing, whole-
year, we find that some of the same ques- Question 3: What are the most audited deduc- saling, retailing,
tions get asked over and over, especially by those in tions? foreclosures, short
the real estate industry. A: For landlords, the most audited deductions are sales, commercial,
repairs on a property. The IRS verifies the expenses brokerage and many
Question 1: What can I do with an investment that that are deducted under repairs that fall within the cat- other types of real
went bad? egory of “wear and tear” on the property, not capital estate activities. In
A: In the current economical climate, many investors improvements. Capital improvements are deductible order to qualify as
are facing this issue. It is important to plan strategi- over a period of 27 ½ years for residential rental prop- a real estate pro-
cally to deduct the losses from your current tax re- erties. fessional there are
turn on either future income or from previous years. Question 4: Am I a real estate professional? many activities that
This is called a Net Operating Loss (NOL) carry back. A: The requirements are as follows: fulfill the IRS hour-
This strategy can generate additional refunds to get 1. More than 50% of the individual’s personal servic- ly requirements and can be easily documented.
you back on your feet quickly. For example, if you es during the tax year are performed in real property
lost $500,000 on investments, the IRS may create a trade or businesses in which the taxpayer materially Some examples of these activities are:
Net Operating Loss of $350,000. participates.
The taxpayer has the right to carry the losses for- 2. The individual spends more than 750 hours of ser- Finding Property:
ward or elect to carry the losses back two or three vice during the year in real property trades or busi- 1. Check and review sources for finding investment
years. By tax planning, the taxpayer can get refunds nesses in which the taxpayer materially participates. properties
from prior year taxes or offset future income. With 3. Real estate has to be over 50% of your time and 2. Develop a list of bird dogs as sources of good buys
proper planning, taxpayers can turn a bad investment income. and motivated sellers
into an opportunity to increase cash flow or reduce One tax benefit is the ability to deduct 100% of your 3. Meet with bird dogs as sources of good buys and
future income. rental property losses against other sources of income. motivated sellers.
Question 2: Should I have my rentals in an LLC? The real estate professional classification can be used
A: From a tax standpoint, Limited Liability Compa- as a power tool to offset income and minimize your Due Diligence:
nies (LLC) is a versatile tax entity with many tax ben- tax liability. 4. Do a market/location analysis including emerging
efits. Based on the tax scenario of the taxpayer, the Question 5: What activities count towards my or reemerging locations
LLC can be a single member, multi-member, or even hours to be classified as a real estate professional? 5. Checkout specific neighborhoods performing a
elect to be taxed as a Corporation. A: Well, a real property business is defined as a real neighborhood analysis
Each option provides a unique set of advantages property development, redevelopment, construction, 6. Physically go out and search for investment proper-
and disadvantages. Furthermore, LLCs are statisti- reconstruction, acquisition, conversion, rental, op- ties
cally less audited than a Schedule E on an individual eration, management, leasing or brokerage trade or
return. LLCs also provide a layer of asset protection; business IRS 469(c). This includes real estate inves- Continued on pg. 5
CashFlow Express • Page 3

4. Find More Money for Deals, cover story
ness will grow by leaps and bounds.
Let’s go over a quick scenario you may
be familiar with: You’ve spent hundreds,
maybe thousands, of dollars on marketing
to find sellers, you find that perfect sell-
er who is begging you to help them get
out of their real estate woes, you get the
property under contract and are ready to
assign that contract for a nice fee—that’s
when you realize you can’t find anyone
to sell the contract to, you don’t have the
money to close on it yourself, and you end
up telling the seller you can’t help them.
Sound familiar?
Now let’s change that scenario: You get
that property under contract and you have
hundreds of hungry cash buyers ready to
buy that property from you!
Nice, right?
I always tell my students that if they
want a successful and thriving business
they absolutely must have a cash buyer’s
list. By having cash buyers who are ac-
tively purchasing property in your area,
you will be able to sell your properties It’s called Find Cash Buy- and stream- are also included: They have a template of
quickly and you will not have to worry if ers Now created by Kent l i n e e f f i - a variety of letters you can send to these
they (or the property) will need to qualify Clothier of the well-known c i e n c y s o buyers — they’ll even mail merge it with
for a loan. These cash buyers can close MemphisInvest.com and t h a t y o u the list you just created. Or if you don’t
easily, which means more money in your 1-800-SELL-NOW compa- can extract like mailing it out yourself you can have
pocket! nies. (The website is: www. yourself them do that for you! Talk about automat-
So how can you find these cash buyers? FindCashBuyersNow.com) from daily ing your business.
You can go the traditional route by attend- I had a chance to ask Kent tasks that What I really liked about the Find Cash
ing investment club meetings, network- some questions about his no longer Buyers Now system is that it’s easy to use
ing, maybe even blogging and drawing a business and his Find Cash require your and investors can easily start finding cash
following of cash buyers. I’ve done this Buyers Now system. Now time.” buyers in any area. Kent and his partners
and I know many others who have been for those of you who do not H e h a s created these systems in their own busi-
successful at doing this. It’s taken years know Kent, you’re in for a certainly ness and have now started teaching oth-
to grow my list — and I’m happy that I treat. d o n e t h a t ers how to use this automated system too.
have a great list of buyers! After leaving the grocery w i t h t h e Currently there are over 3,000 weekly us-
Now what if, instead of taking years, industry, he turned to real Find Cash ers benefitting from this system!
you can build your cash buyer’s list in a estate because of its low bar- Buyers Now So if you’re just starting your real estate
couple of minutes? Well I had a chance rier of entry and ability to generate cash system I tried. My experience with the business or you want to grow it quickly
to check out a great system that not only quickly. system was great. I simply chose the ar- and effortlessly, be sure to explore the
finds these cash buyers in literally a few From there he and his family started eas I wanted and the dates when the prop- Find Cash Buyers Now system online:
minutes anywhere in the country but also creating systems in their business. I asked erties in the area were purchased with cash www.FindCashBuyersNow.com
gives investors the tools to contact them him what’s the one piece of advice he could and I had a list of 4,000 buyers in a couple It’s time to automate your business just
and build a business the right way. give readers, and he said, “Design your of minutes! They even break it down by as Kent does: “Focus on your passion and
A couple of weeks ago I had the plea- real estate business to be a ‘business’, not commercial and residential properties. build a business that will allow you to
sure of testing out this system for myself. a hobby or a ‘job’ …automate processes Now let’s talk about the great tools that spend quality time pursing that passion.”
Be a Guest at Our
Next Expo for FREE
Learn From the Top
For Real Estate Investors, Home Buyers & Homeowners
Ca$hFlow
EXPRESS
No. 1 / Vol. 1 2012 Passive Income for Today & Tomorrow FREE
Investors Manifest a
Experts in the Nation!
Learn How to Create Stock
•Credit Repair & Business Market Wealth Today “Cashflow” Mindset
By Doug Carver
Organizer Pasadena and Burbank
estate investing, trading stocks, building
a strong MLM business, etc. You will not
I
Cashflow Meetup Groups succeed. It’s like trying to grow corn in
Lines of Credit
a field of sand. The seeds will not germi-
can remember my first time play- nate and you’ll end up with next to noth-
ing Robert Kiyosaki’s Cashflow ing to harvest in the fall.
board game about eight years How, you ask, does this relate to the
ago and how it Cashflow game?
started a chain Well, after playing
of events that continues the game a bunch
to this day. What stuck of times, I learned
•Wealth Building Education
with me most was not the the “how to” of
“how to” of playing the getting out of the
game but the people that rat race, but I still
I met at the event. These was not able to
were not like the normal take what I learned
people in my life that from the game and
sign up online at:
By Tyrone Jackson companies and products with which would tell me I was crazy Dougthe Cashflow gameChris Hanson dis-
play
Carver (left) and
to group members.
apply it to my real-
you are familiar. for trying to start my own life financial situ-
TheWealthyInvestor.net
Yes!
real estate business or ation. However, I
•Access to Property Deals
If you’ve ever opened a can of
You can be Coca Cola on a hot summer day and that financial freedom was impossible realized that the time I was spending with
rich from felt refreshed and invigorated, why without a steady well-paying job. The my new Cashflow friends was changing
owning real not own the stock? It’s a product you people I met were excited about learn- the way I thought about money and my
estate and trading stocks. know with a story you understand. ing and expanding their knowledge on financial future. I no longer viewed the
We’ve all heard the story of the When I say “a story you understand,” how to achieve financial freedom. They stock market as a giant rigged system for
little old lady who lived modestly I mean to say that you understand were active investors in real estate and losing money. I began to see the tremen-
and worked as a school teach- how the Coca Cola the stock market. They were small busi- dous opportunities in the sinking real es-
er for 40 years. She never Corporation makes ness owners with a passion and vision tate market even as many people I knew
Self Directed IRAs/401K
earned more than $35,000 per money, or to ex- for creating more financial success in were losing money on deals that had gone
year, owned a modest home, press it in Wall their lives. Overall, they had a mindset bad. Overall, I saw for the first time op-
and shared her life with two Street terms, you for prosperity that I like to call a “Cash- portunities all around me to create wealth
cats. Once she died, her rela- understand how flow” mindset. even as the newspapers talked constantly
A lot of people complain that Kiyosaki of the “Great Recession.”
www.realty411guide.com/events
tives discovered a $150,000 the company earns
life insurance policy and $1.5 revenue. The more does not provide the specific details on Today as a result of my ongoing in-
million in stocks that she left bottles and cans of how people should implement his strat- volvement playing and organizing local
to the elementary school’s Coke that Coca egies to create financial freedom in his Cashflow events in Southern California,
scholarship fund. Cola sells around books and programs. Truth is he never I have a thriving real estate investing
•Private Money Lending
The national media loves the world each day, spells out a step-by-step “how to” for business. It was after speaking with one
to air these stories. It seems the larger the com- building long-term financial freedom. of my Cashflow friends who was a real
there are several old ladies pany’s profit. Over What he does teach is far more impor- estate investor that I was encouraged to
who fit this seemly unique the past ten years Coke stock (symbol tant, and that is how to create a “Cash- start wholesaling distressed properties. It
profile year after year. How could KO) has risen from around $40 per flow” mindset. Kiyosaki describes it in turned out to be a great decision. More
that be? share to a high of $71 — $1000 in- his book Cashflow Quadrant moving recently, I’ve begun to learn how to suc-
Investing in stocks is not the vested in Coca Cola stock ten years your mindset from the E (employee) and cessfully trade in the stock market using
world’s most challenging task. In ago would be worth $4,100 today; S (self-employed) side of his Cashflow options. As a self-proclaimed real estate
quadrant to the B (business owner) and “zealot”, I never would have dreamed of
•Mortgage Refinancing
fact, at its core, it’s very simple. The $10,000 invested in Coca Cola stock
truth is that the stock market creates would be worth $41,000 today. I (investor) side of the quadrant. In lay- investing in the equity markets. Howev-
millionaires every year. Investing in If you spend more than $100 per man’s terms, it’s the mental shift from er, after playing Cashflow 202 with my
stocks, with wealth in mind, is easier year eating fast food, why not own someone who seeks financial security at Cashflow friend ,who is an active trader,
than you think. the stock? Over the past ten years all costs to someone who can confidently and learning about his trading system, I
McDonalds stock (symbol MCD) has and knowledgeably take measured risks. was able to see the opportunity before
Invest In What You Know risen from a low of $15 per share to a This is a simplistic definition but a very me. I now fully expect that investing in
high of $95 per share. important one to understand. Without the the markets will be a huge part of my fu-
or simply call 310.499.9545
Wanna be a good stock market in- correct mindset, it really doesn’t matter ture financial success in addition to my
•Apartments Investing
vestor? Keep it simple and start with Continued on pg. 12 how much you learn the “how to” of real
Continued on pg. 2
Personal Finance News from the Publishers of Realty411 Magazine - www.Realty411Guide.com
•Tax Liens & Tax Deeds
•Property Rehab
Wealth
Real Estate
•Lease Option Vol. 1 • No. 4 • 2011
•Short Sale •Probate INSIDE:
Get Out of the
Rat Race with
Sam Sadat
The Master of
Passive Income Motivation Speaks
Discover Why
Now is the
Time to Buy!
Learn from
the RE Divas
To get your free Credit Repair Book, visit www.SFBAI.com
Call: 510.491.4161 • Email: info@SFBAI.com Welcome to Sam’s RE Club
at the Beverly Hills Country Club
CashFlow Express • Page 4

5. Decrease Your Tax Liability, pg. 3
7. Contact prospective prop- 27. Do a pre-closing inspec-
erty owners tion of the property
8. Do a preliminary quanti- 28. Attend the closing of the
tative analysis on properties purchase of the property
(such as the cap rate) 29. Take care of any post-
9. Do a preliminary “drive- closing matters
by” property inspection
10. Make and negotiate pur- Follow-up:
chase offers on property 30. Follow-up to see if any
11. Verify the income, ex- prior prospective sellers are
penses, vacancies on the more prone to renegotiating
property’s operating state- 31. Renegotiate the transac-
ment tion to finalize the purchase
12. Review leases, utility as per the above list
bills, maintenance contracts,
other pertinent documents There are many more activi-
13. Do a thorough physical ties that qualify you as a real
property inspection analy- estate professional such as
sis operations, management,
14. Obtain Estoppel State- rehabbing, selling, exchang-
ments from the seller and ing, seminars, webinars,
tenants. and many others. Do this
15. Forecast projected in- and fully deduct your rental
come and expenses for a to- losses without limit.
tal projected annual yield Real estate investors
should not be afraid of the
Offers and Contracts: IRS. As long as you docu-
16. Make final offers ment your time and expens-
es, YOU, the taxpayer, will
17. Prepare contract for pur-
chase of property win. "Price is What You Pay, Value is What you get”
18. Review seller’s contract The bottom line is the fol- - Warren Buffett, American business magnate, investor, and philanthropist
for purchase of their prop- lowing: It is important to
erty have a solid strategy in place
when embarking on any real
e s t a t e v e n t u r e . T h r o u g h
Financing Property:
proper planning your taxes
19. Check out sources of fi- will be minimized.
nancing for acquiring prop-
Remember what Supreme
erty
Court Justice, Learned Hand
20. Review member credit said, "Any one may so ar-
reports; repair or correct ac- range his affairs that his tax-
cordingly. es shall be as low as possible;
21. Prepare a credibility and he is not bound to choose
profile package that pattern which will best
22. Meet and develop rap- pay the Treasury; there is
port with lending sources not even a patriotic duty to
23. Prepare a loan package increase one's taxes.”
for a property acquisition
24. Arrange for financing Stephen Hall is President of
for acquiring property Robert Hall & Associates,
25. Negotiate the seller to an accounting firm that spe-
hold financing cializes in real tax planning,
including incorporating.
Closing Property: For over 40 years, they have
26. Prepare for closing of assisted landlords and real
the prop. purchase, such as estate industry profession-
arranging inspections, cer- als on strategies to minimize
tificates, etc their taxes.
Need Assistance Getting Started?
We Are in the Business to Help YOU.
Investing Success can be Yours!
Work with our Team Members.
Meet Our Affiliates, Property
Managers & Network Members.
We are in TOP MARKETS around
the country and we can refer you to
reputable people in the industry.
Want More Information?
Need Help? Don’t Know Who Being a
Landlord is
to Call? Contact us anytime for Easy with
information, referrals or help. the RIGHT
team!
Call 310.499.9545 or Realty411guide@msn.com
CashFlow Express • Page 5

6. Commercial Property News
Craig Lieberman, CCIM, discusses Realty Trends
I
difficult exchange, Lieberman sure and been forced into rentership status. Even the
t’s easy to sell real estate when it has is proud of the fact he was able retirees are seeking rentership in larger numbers.re-
transformed your life. Craig Lieber- to save his exchange client well flecting their growing preference for travel in lieu of
man, broker and founding managing over a half-million dollars in being encumbered with the cost and responsibilities
director at the Apartment Investment capital gains tax. The exchange of homeownership, especially in light of the equity
Specialists, located in Santa Barbara, Ca- accommodator involved hails lost and unavailable to be tapped by these retirees as
lif., knows firsthand the benefits of prop- Lieberman’s creative expertise a consequence of the recent housing bust. All this
erty investing. He traces his real estate as exemplary of why Lieber- increasing demand for rental units in our economy
roots back to 1978, when he worked on the man has been such a successful means increased occupancy rates, which ultimately
Trans-Alaskan Pipeline project. Lieberman apartment property broker – as translates to increased rents and revenues to the apart-
says he was making too much money as a part of her compliment of the ment property owners.
laborer on this behemoth project, accord- company’s brokerage efforts, Although apartment developers are realizing this
ing to his accountant, not to be involved she said “they came to bat for an commercial sector offers strong demand potential
in tax-sheltered real estate investments. That was the exchange client with extremely difficult replacement increasing feasibility potential, the number of units
impetus for his investment in his first apartment prop- property parameters, and it was like watching a magi- coming on line is being held in check by the lack of
erty – a five-plex located in Costa Mesa, California. cian pull a rabbit out of a hat”. infill development opportunities, at least, along the
As a consequence of seeing cash flow and profit Lieberman’s involvement in the ownership and coastal areas. Moreover, the cost of construction and
from his first investment venture, he has been in- brokerage of apartment properties has grown into a the difficulty in securing construction financing is
vested in apartment properties in some fashion ever strong passion putting a damper on new construc-
since. This very niched experience, along with his for this particular tion activity that would otherwise
concentrated education – earning both master’s and commercial real become a competitive threat to the
bachelor’s degrees in Real Estate Appraisal and In- estate sector. He existing rental housing stock and
vestment Analysis from one of the premier universi- argues apartment place a ceiling on occupancy and
ties in the nation, as well as achieving the premier properties are cur- rental rates.
C.C.I.M. (Certified Commercial Investment Manag- rently the stron- Also adding significantly to
er) designation, the highest designation available to gest real estate investment vehicle available because the bottom line of apartment owners is the historically
commercial real estate professionals – makes him par- of the combination of the unusually strong demand low cost of borrowing. Because this expense dispro-
ticularly well suited to give his clients valuable real for rental units by apartment dwellers in addition to portionately affects the total cost of ownership, this
estate investment advice to optimize their particular the availability of the “cheapest” money for apart- “cheap” money is helping owners achieve rates of re-
investment goals. This very concentrated background ment financing in history, the combination of which turn not normally seen in apartment property owner-
in apartment property investment has evolved into is swelling the bottom line and returns of apartment ship. Currently, with treasury rates at all time lows,
Lieberman founding and developing a very success- property owners. Lieberman contends the “stars are the index in which most apartment mortgages are tied,
ful and respected apartment brokerage and property aligned perfectly for apartment property investors” to some five-year and ten-year mortgages are at or about
management company, the names of which are the earn generous rates of return – apartments are current- 3% and 4%, respectively, making these mortgage rates
“Apartment Investment Specialists” and “A.I.S. Prop- ly hailed as the “darling real estate investment type”. competitive with house mortgage rates.
erty Management Services”, respectively. The unusual demand for rental units by the “X” and So, why does Lieberman think apartment properties
His company doesn’t handle residential properties “Y” generations (the largest consuming age cohort of are the preferred real estate investment vehicle? He
and prides itself in filling a much need void.In fact, rental units) as well as “baby-boomers” and retirees, concluded our interview by noting that there is really
his commercial brokerage and property management stems from several significant demographic, psy- nothing negative about apartment investing from an
company transacts with apartment properties exclu- chographic and life-style paradigm shifts. The more economic perspective – demand is very strong and
sively along the central coast of California, from San youthful generations would rather rent than own, so will continue to be so, while new supply is held in
Luis Obispo County down to the San Fernando Val- they can be free to take jobs anywhere in this job- check, the disequilibrium of which will continue, at
ley. less economy without the concern of selling a house least for the foreseeable future exert upward pres-
Lieberman is a person who admits to taking his in a tough housing market, the economic conditions of sure on occupancy and rental rates and, ultimately,
work very seriously but likes to have a good time and which is also leading to deferred marriages and par- on property revenue; at the same time, mortgages,
enjoy life. In his own words, “I work hard and play enting and consequential increased rentership rates; normally the largest cost component of ownership,
hard.” and, with the dismal housing trends of recent past, the are the lowest seen in history. These conditions are
His subscribing to a strong work ethic, which in- allure of homeownership has been challenged, also providing apartment investors generous returns and
cludes working hard for the best interests of his cli- making renting seen as a preferred alternative by most increased values.
ents, has manifested, for example, into the company of the constituents of this population group. Consequently, Lieberman sees no downside to
receiving the prestigious 2011 Jack Kelly Exchange of The “baby boomers” have also increased demand apartment property ownership; in fact he says its po-
the Year Award awarded by the Santa Barbara Associ- for rentals – a significant number of individuals in tential will be bolstered because, “everyone needs a
ation of Realtors. In this particularly complicated and this age generation have lost their houses to foreclo- roof over their head”.
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CashFlow Express • Page 6