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Table of Contents
Select a Title Below to View the Article
12 Cover Story
Texas Real Estate Investors
Unite in San Antonio
By Victor Maas
“you can make more in real estate than practicing law."
Victor
Understanding 21
the Mindset of the Investor
By Leonard Rosen
52 Becoming Your Own Banker
with The Infinite Banking Concept™
By James Neathery
BEST KEPT SECRETS 16
To Get More Motivated Sellers Contacting You
By Kathy Kennebrook
The Flip Side 42
Of Private Lending
By Sensei Gilliland
7 Personal Finance Questions 36
to Ask Yourself Before Getting a Mortgage
By Dr. Teresa R. Martin
Making the Decision 30
To Control Your Money (Chapter 1 Part 2)
By Rebecca Rice
Tips For Success 25
By Michael Poggi
56 Many US Communities
Seeing Real Estate Inventory and Lead Shortage
By Leon McKenzie
63 Solo 401k
A Tax Saving Strategy for Real Estate Investors
By Jean NortonDmitriy Fomichenko
69 Here's the Capital You Need
By Dana Bersch
74 Experts to Discuss California’ s
Real Estate Bubble
and Digital Disruption at Charity Event Organized by The Norris Group
By Aaron Norris
79 Skyrocketing Inflation,
Rents, and Home Prices
By Rick Tobin
Letter 10
From the Publisher
By Linda Pliagas
47 Mortgage Free
Real Estate
By Matthew Pillmore

LINDA PLIAGAS
ello Friends of REI WEALTH;
Thanks for joining us for another informative issue. For nearly three years, REI WEALTH has provided investors
around the world with timely, thoughtprovoking articles; stories written from top investors from around the nation.
Our environmentallyfriendly resource guide is designed to inspire hopeful investors, as well as teach even the most
sophisticated landlords a lesson or two.
My partner, Noland Araracap, a real estate investor based in San Diego, had a vision to reach investors around the
world. It is an honor and pleasure to continue his initial dream and inspiration.
I often meet our readers in person when we host events in different cities, and it's amazing to get to know our fans
firsthand.
H

Linda Pliagas
Linda Pliagas has studied and worked in both media and real estate for nearly twenty years.
Linda holds a bachelor’s degree in print journalism from California State University, Long
Beach. She was a recipient of the Bobit Magazine Scholarship for her accomplishment in
publishing her first national magazine while still at CSULB in 1993. Her first national
publication, distributed into bookstores across the country, gave her a national spotlight and
forum at the age of 25. She was featured in the Los Angeles Times, Wall Street Journal,
Santa Monica News, among others.
She began her realty career 17 years ago as a broker’s assistant to a young broker who
became a multimillionaire by age 29 fixing and flipping homes. When they worked together, he was a seminar devotee
and took educational training around the nation with some of the greatest masters in the industry, many who are now
featured in this publication! She kept a close ear to his teachings, obtained her real estate license, and began to focus
more on the investing side of the real estate industry. Soon, Linda began to help her family, friends and colleagues also
invest in rental properties, particularly out of state. Linda has been a licensed real estate agent for over 16 years. A
journalist since the age of 18, Linda Pliagas has also worked and freelanced for numerous national magazines, local
newspapers and online news websites.

LINDA PLIAGAS
The friendships that have blossomed out of
this business have been really incredible. I'm
certainly much richer because of REI
WEALTH thanks to all the people I've met
along the way.
Our team, scattered around the world in
California, Florida, Nevada, Missouri, and
the Philippines wish you all the best with
your investment endeavors.
Until next time,
Linda Pliagas
copublisher

Texas Real Estate Investors
Unite in San Antonio
By Victor Maas
TEXAS REAL ESTATE INVESTORS UNITE IN SAN ANTONIO VICTOR MAAS
hether you are still sitting on the sidelines looking for a way onto the real estate investment
playing field, or you’ve been doing deals for years; you already know that there can be a fair
amount of challenges. Maybe that is finding the money to get started. Or it could be finding a creative W
You might be in real estate for yourself, but you don’t have to invest by yourself

way to structure a tricky deal with big profit potential, getting help in ensuring a buyer or seller lives up to their
agreement, or simply finding a smarter way to scale lead generation and deal flow. Regardless of how high your
IQ is, or how hard you are willing to work at it, all of these hurdles are far more easily overcome with the help of
others who have the contacts or experience, and have been there before.
Texas real estate investors have been uniting
together for their success thanks to SAREIA.
President of the San Antonio Real Estate
Investors Association, Victor Maas, is a self
described “problem solver.” Since 2002,
SAREIA has been leading the biggest REIA in
South Texas, helping members realize more of
their goals and connecting them together to
exponentially accelerate their results.
Victor Maas knows all too well about the
challenges of working your way up to make
your dreams happen, and overcoming the challenges of entering a new market, profession, or business. Victor
is a selfmade success who essentially found himself in the U.S. on his own to make his own American Dream
happen for himself. He appears to have done pretty well at that. Today he is a lawyer, real estate broker,
investor, coach, and SAREIA president.
Victor clearly does have to juggle some of these roles. It is a choice. He doesn’t want others to have to go at it
alone, and of course together there are plenty of rewards in going bigger in the property industry. In fact, Victor
Maas is one of a growing number of attorneys who have been making the leap, or at least have been adding
real estate investment, as “you can make more in real estate than practicing law.”
It certainly pays to have a coach, mentor, and
association president who has both this breadth
and depth of expertise. Through SAREIA,
members will find advanced help with real estate
contracts, law, dealing with probate situations,
finding sellers, title issues, and business
formation. Victor speaks Spanish too, which is
virtually a must when doing business in Texas,
and could be a great value added bonus for
those who aren’t bilingual.

SAREIA offers a variety of opportunities, which include the benefit of Victor’s experience and connecting with
other Texas real estate investors. This is anchored by monthly meetings on the first Tuesday of the month in
San Antonio. Then there are Boot Camps and Bus Tours, a mentorship program, lunch and learn events to
advance your real estate marketing and creative financing skills, plus SAFIRE. SAFIRE is the San Antonio
Female Investors in Real Estate group.
The big difference you’ll notice at SAREIA from other real estate education, training, and coaching options is
the action. Even at monthly meetups you’ll get time to ask questions and get them answered, and do some real
networking versus sitting and just listen to a lecture or sales pitch. Other events get investors out in the field for
hands on property scouting and deal making.
Looking forward, Victor says there are plenty of real estate deals to be done whether you are prehabbing,
wholesaling, putting together JVs, or are seeking income properties.
Find out more about the Texas real estate landscape, SAREIA, and Texas real estate forms right online at
www.SAREIA.com.


BEST KEPT SECRETS
TO GET MORE MOTIVATED
SELLERS CONTACTING YOU
By Kathy Kennebrook
(The Marketing Magic Lady)
BEST KEPT SECRETS TO GET MORE MOTIVATED SELLERS CONTACTING YOU KATHY KENNEBROOK
etting motivated sellers to contact you first is essential to any successful Real Estate Investor’s
business. A truly motivated seller is the key to a good deal; the more motivated the seller, the better
the deal. You will find very quickly, as I did, that you will be able to buy a lot more houses at much
better prices if you target the right sellers. You will also get the terms you want when the seller contacts you first,
especially in some of today’s really hot real estate markets. You’ll want to target the kind of sellers who truly need
to sell as opposed to those who just want to sell, including those sellers in preforeclosure.

G

Marketing to sellers is also a numbers’ game. The
more motivated sellers you are able to locate, the
more motivated sellers you will have contacting you,
and the more opportunities you’ll have to make good
deals. The secret is in learning how to find the truly
motivated sellers.
Whom exactly are you going to be marketing to?
Motivation comes in many forms. Sellers need to sell
for a variety of reasons. Some reasons have to do
with the sellers themselves, such as age, health
status, job situations, personal situations, financial
difficulties, change in family size or change in marital
status.
Other reasons might have to do with the property
itself, such as an estate, a property that needs too
much work, or a property that has been vacant for a
significant period of time. This would also include
land lords who have simply had enough of tenants
damaging their properties over and over again.
So how do you find these sellers and how should
you market to them? The best way I’ve found to do
this is by using at least three to five different
marketing strategies at all times. One of the multi
pronged marketing approaches is the proper use of
direct mail to reach these very motivated sellers. You
always want to be reaching your market in a variety
of different ways to draw the highest number of
motivated sellers to you.
The BIG secret to effective direct mail campaigns is to use
them over and over to the same potential sellers. As you
will quickly discover, given time, almost every potential
sellers’ circumstances change and make them more ready
to sell.
I also find that these mailings are very residual. These
potential sellers will hold onto your direct mail pieces
until their circumstances dictate that they contact you,
especially since they probably have not had any
contact from anyone else, because usually their
properties are not being actively marketed.
Since they are not being actively marketed, there is
virtually no competition for these deals. And… if you
take the time to actively follow up with your direct mail
campaigns and with your sellers, these sellers will
contact you first when they need to sell, even if they
have been contacted by someone else in the
meantime.
This makes it even easier for you to make a good
deal. In addition, during the time you have been
mailing sequentially to these potential sellers, you
continue to build credibility with them. This will give
you a significant advantage over your competition,
since these sellers feel they already have a
“relationship” with you.
The biggest part of the secret is to find the sellers
who really want to sell. I use different direct mail
campaigns to successfully locate several types of

motivated sellers depending on what kind of deals I am specifically looking for in my business. The best way for you
to build your business quickly is to use a number of different methods to draw motivated sellers simultaneously.
This can best be done by locating mailing lists and refining them to meet your specific criteria, and then mail to
them over and over, cleaning your lists as you go. I find that I get the best results by mailing to my lists at least
every sixty to ninety days. This is very easy to do if you implement a follow up system which will help you to
track your mailings and your deals.
You’ll also quickly discover that different types of direct mail pieces and lists work better in some parts of the
country than in others. Some of these lists might include mailings to out of state property owners, burned out
land lords, quit claim deeds, military transfers, estates or preforeclosures. These are all sources of highly
motivated sellers.
Be sure to give your potential sellers several different ways to contact you such as mail, email, fax, phone and
a website. The more ways you give these sellers to contact you, the more of them will contact you, especially
when you make it more convenient for them by giving them several ways to reach you. This way they can
contact you in the way that is the most comfortable for them and at their convenience.
When you learn how to get motivated sellers contacting you and then learn how to purchase properties using a
number of different methods, the possibilities become almost endless. If you use several different methods to
get motivated sellers contacting you, you will have more opportunities than you can even imagine. You get to
pick and choose the deals that you want to do! Because you get to pick and choose the deals you want to do,
you can also pick the exit strategy that most suits your needs, such as wholesaling, renting, selling or
lease/options. There is no other marketing strategy that gives you this much control over your deals.
In addition, in today’s market, since so
many folks are focused on pre
foreclosures, there is a whole other
market of sellers who need our help as
well, like divorces, estates and probate,
military transfers, burned out landlords
and Spanish Speaking homeowners.
These are just a few of the types of sellers
we need to be concentrating on to create
great deals, including those that come
with owner financing.

Using direct mail campaigns to market to motivated sellers and developing a “cookie cutter” system to
accomplish this is one of most affordable, reliable, and effective ways that I know to build your business quickly
and have more qualified motivated sellers contacting you than you will be able to handle.
For more information on Kathy Kennebrook’s marketing tools to find all the motivated sellers and lenders you
need for your real estate investing business go to Kathy’s website at www.marketingmagiclady.com. While you
are there be sure and sign up for her monthly newsletter and receive $149.00 of real estate tools absolutely
FREE!!
Kathy Kennebrook
Kathy holds a degree in accounting and has coauthored the books The Venus
Approach to Real Estate Investing, Walking With the Wise Real Estate Investor, and
Walking With the Wise Entrepreneur which also includes real estate experts Donald
Trump, Suze Orman, Robert Kiyosaki, and Dr. Wayne Dyer. She is the nation’s leading
expert at finding highly qualified, motivated sellers, buyers and lenders using many types
of direct mail marketing. She is known throughout the United States and Canada as the Marketing Magic Lady. She has
put together a simple stepbystep system that anyone can follow to duplicate her success.
Kathy has been speaking throughout the country and across Canada for over 14 years and has shared the stage with
Ron LeGrand, Donald Trump, Dr. Phil., Dan Kennedy, Mark Victor Hansen, Ted Thomas and Suze Orman to name a
few.
Dagger LLC 9417925390
P.O. Box 14343 9417956887 (fax)
Bradenton Fl 34280 kpaddler@att.net

By Leonard Rosen
UNDERSTANDING THE MIND SET OF THE INVESTOR LEONARD ROSEN
n my 35 years of being involved in the real estate marketplace, I have come to the conclusion that not
many promoters of real estate syndication understand the mind set of of the investor.
I
Understanding the Mind set
of the Investor
In order to begin the process of raising
capital, the promoter needs to
understand the risk tolerance and
appetite of the investor. Every investor
needs to feel comfortable with the
asset class, geographical area and
dividend yield associated with the
investment. Real estate investors have
different comfort levels, consequently,
the investment must fit into their
strategy.
Also, investors come in all shapes and
sizes, some investors will deploy
capital utilizing their self directed IRA,
while others deploy capital outside of
their retirement accounts.

Obviously, these are easy
questions to be answered with
a quick due diligence check
list. I ask real estate
syndicators all the time, what
is your investors most
dominate question prior to
deploying capital? I receive
answers such as dividend
yield is the predominate
concern. After further
discussion, we realize that the
dividend yield is used as an
excuse for not feeling
comfortable with the investment proposal.
Investors participate in business deals with people
that they like and trust. If the trust factor is not
addressed, the likelihood of an investor participating
in your deal will be low. Addressing the emotional
needs of someone who is asked to give you money is
a complex issue.
I believe you should follow my simple 4 step rule.
Rule number 1. Never ask your investor for capital
on a first meeting, simply share some concept and
ideas and gauge their interest. This is a time to fact
find and begin your relationship. The ultimate goal is
to begin a dialogue in the purpose of creating a trust
factor.
Rule number 2. Exchange contact information and
reach out to your possible investor by email or phone
and thank them for the time they spent with you.
Rule number 3. Schedule a time for coffee to explain
in detail your investment strategy to determine if the
investment strategy fits into the investors comfort
level. You can speak about risk factors, dividend
yields and security interests.
Rule number 4. Be patient, move the relationship
along at the speed the investors feels comfortable
with. This is the time to gauge their interest for their
participation.
Always remember, Have testimonial letters available,
website address and a detailed executive summary
of the proposal.
Good luck!

Leonard Rosen
CEO, Pitbull Conference
“The Most Interesting Man in Hard Money”
Leonard Rosen’s career has spanned over 30 years in the financial services market as it
relates to real estate. In the 80’s, Mr. Rosen was the nightly news anchor for the
Financial News Network. After the network was sold to CNBC, Mr. Rosen hosted the
nationally syndicated television program “The Leonard Rosen Show”.
Today, Mr. Rosen hosts “Financial News with Leonard Rosen”, which focuses on the real estate markets with an emphasis
on the private lending sector. Mr. Rosen’s market commentary has been featured in The Wall Street Journal, Fox News, and
MSNBC.
As the CEO of Pitbull Conference, he is regarded as “The Most Interesting Man in Hard Money”.
Mr. Rosen believes you sell the problem you solve not the product. His visionary approach has earned him praise from the
real estate and lending community nationwide.
Mr. Rosen provides private consulting to major banks, hedge funds, mortgage companies and private lenders.
“Business is based on two essential components, power and leverage. The most common way people give up power is by
thinking they don’t have any.”


he Millionaires Real Estate Investment Group is a private investment group made up of 10,000
members and 2500 active investors. The focus of the Millionaires Real Estate Investment group is to
invest in several areas of Real Estate and Businesses ranging from purchasing apartment buildings,
building new construction homes, purchasing vacant land in fast growing areas as well as investing in
businesses.
T
TIPS FOR SUCCESS MICHAEL POGGI
TIPS FOR SUCCESS
By MICHAEL POGGI

I have had decades of experience in Real Estate
Investing. Throughout the years, I have had several
ups and downs. I will share with you some of the tips
that have allowed me to be successful in Real Estate
and Businesses. I would like to save you from some
of the mistakes that I have made and thus allow you
to succeed early on in your career.priorI have had
decades of experience in Real Estate Investing.
Throughout the years, I have had several ups and
downs. I will share with you some of the tips that have
allowed me to be successful in Real Estate and
Businesses. I would like to save you from some of the
mistakes that I have made and thus allow you to
succeed early on in your career.
Take control over your Mind and Your Attitude
We all know that there are many things in life that you
cannot control, but you can control your mind and
your attitude. External forces have very little to do with
success. Those who program themselves for success
find a way to succeed even in the most difficult of
circumstances.
Live life to the Fullest Living life to the fullest is a
lot like shooting the rapids in a rubber raft. Once you
have made the commitment it’s difficult to change
make it all worthwhile. If you never make the attempt,
you may never know the depths of despair, but
neither will you experience the exhilaration of
success.
I strive to live my life personally and professionally to
the fullest. I do not allow mistakes or challenges to
stop progress, when a challenge arises; I determine a
solution and move forward. Do not let challenges
stand in the way of your progress in beginning Real
Estate or continuing in Real Estate, if you do you will
be cutting yourself off from the huge success that you
could achieve.
Leverage Your Money to Get Deals Done Do not
wait until you have all of the money for a deal in order
to make that deal happen. There are so many ways to
structure a deal. You can partner with someone else
that has the money, and you do all of the work, Or you
can put in half of the money and the partner puts in
half of the money, or you can put down a down
payment and let the seller hold the note etc.. Do not
let lack of money stop you from getting deals
done.

Don’t be Afraid to Change Directions When Necessary It is imperative that we are not afraid to change
directions when conditions change. I have been a Real Estate Investor for many years, and have seen the ups and
downs of the market. I have always watched the market conditions to determine what strategies make sense.
It is not wise to hold on to a strategy when the numbers and the market conditions no longer align. Sometimes it is
tempting to jump into a real estate investing strategy that
no longer yields great returns due to the market when in
reality the time for that strategy has already passed. For
example, at the top of the market is not the best time to
purchase rental properties.
There are strategies that fit every type of market. Our
team researches and determines the best strategies to
invest in and changes directions when market conditions
deem necessary.
Grow Your Wealth Tax Free By Investing in Real Estate using a SelfDirected IRA One strategy that has
allowed me to gain tremendous wealth has been investing in Real Estate using a Self Directed IRA.
An IRA, An Individual Retirement Account is a personal savings plan that allows you to set aside funds for your
retirement. Investments made within these plans grow in either a taxdeferred or taxfree environment.
A taxdeferred account is one that is funded with pretax dollars which means in most cases that you get a
deduction for your contributions. When distributions are taken from the account those funds are taxed. Traditional,
SEP, and SIMPLE plans are referred to as taxdeferred accounts.
By contrast a taxfree account is one that is funded with after tax dollars, which means that you do not receive a
deduction for contributions. When distributions are taken, there are no taxes incurred in a taxfree account. The
Roth IRA and the Coverdell Education Plan are referred to as taxfree accounts.
The Selfdirected IRA is a wellkept secret. You might not be aware
that it is possible to invest in nontraditional investments such as
real estate, mortgages, tax liens, mobile homes and other
investments in an IRA. A truly selfdirected IRA will enable you to
use your investment knowledge and expertise to prepare for your
retirement. A selfdirected IRA allows one to make their own
investment decisions from a wide range of acceptable investments.

Michael Poggi
Michael Poggi is a nationally recognized public speaker, established author, and professional
investor, with nearly two decades of experience. Michael speaks on advanced wealth strategies and
how to invest in Real Estate and Businesses the right way .He presents topics such as: house
flipping, purchasing apartment buildings, and building new construction homes, development
projects, purchasing vacant lots in fast growing areas and buying businesses in your IRA or your old
401K plan. He teaches people how to make their IRA selfdirected in the true sense, so you can use
it for real estate. He also teaches people and mentors students on how to make their IRA cash flow monthly taxfree as
well as how to invest properly.
In addition, Michael is the president and founder of The Millionaires Investment Group, based in Ft. Lauderdale, Florida.
There are 10,000 members of the Millionaires Investment Group and 2500 Active Investors. The Millionaires Investment
Group holds a meeting on a monthly basis to network and partner on real estate ventures, and businesses. Michael’s
company specializes in many aspects of commercial real estate, vacant land, development projects, new construction
home projects and businesses. The group attracts top notch speakers from all around the country, who are featured
monthly to provide additional education.
Michael is often a featured guest on the Money Talk radio show. His company, Build Wealth with Land, LLC, is
one of the largest land providers in the U.S., providing hundreds of vacant lots to investors and builders yearly.
Michael has bought and sold over 1000 vacant lots and houses in the last 10 years, tax free.

I was able to grow my wealth from $500.00 to $1,200,000 by investing in Real Estate using a SelfDirected
IRA. Imagine the difference this strategy will make in your life by allowing you to grow your wealth taxfree. You can
learn additional strategies that have allowed me to be a successful Real Estate Investor in my book “Build Wealth
Tax Free Profit Formula” that is featured on Amazon.
I have taught and mentored thousands of students over the years at my educational seminars and webinars. Please
email our office to be added to our database to receive invitations to these events. We often partner on real estate
and business projects when the numbers make sense whether it is your project or our projects.
Feel free to contact our office for additional information about the Millionaires Real Estate Investment Group. We
look forward to getting to know you and finding out more about you and your business and how we can possibly
work together moving forward. info@themillionairesgroup.com 9543063586


Making the Decision to
Control Your Money
MAKING THE DECISION TO CONTROL YOUR MONEY (PART 2) REBECCA RICE
nterest: Are you paying it or are you earning it?
Secret #1: Uninterrupted Compounding Interest paid to YOU.
Many of us have been on the paying side of interest. When we borrow money for a house, car, or credit card
debt, the interest is relentless. It doesn’t sleep. It doesn’t rest. It never takes a day off. It continues to add up.
By Rebecca Rice
I
excerpt from the book multiply your wealth
Chapter 1. Why Have You Missed This Secret? (Part 2)

Albert Einstein is thought to have
said, “Compound interest is the
eighth wonder of the world. He who
understands it, earns it…he who
doesn’t…pays it.”
Your path to financial security has a
direct relationship to compounding
interest. Compounding means that
the interest you earn also earns
interest.
If you have $10,000 and it earns
5% interest in a year, you have
$10,500 at the end of the year. If
that interest is paid monthly, it looks
like this: (see figure 1.1)
You may look at this chart and
think, “No big deal, that’s only and
extra $14.72.” But look what
happens when you allow that
compounding interest to grow for
10, 20, or even 60 years.
Your one time deposit of $10,000
grew to $199,607.39 without you
adding one more cent! That’s the
gift of time and compounding
interest. (see figure 1.2)
Figure 1.1
Figure 1.2
What if you put in an additional $500 a month to your original $10,000?
In 60 years you’d have accumulated $2,356,483.65 when
compounded annually. Your cash investment would have totaled
$370,000 of that amount. The rest—nearly $2 million—came from
compounded interest alone.
Look at what happens when you start with a smaller amount and allow
it to compound for a longer time. In the following chart, you started with
only $1,000. Even though it’s 1/10th the amount of the illustration
above, with 8% compounding and 40 more years, it’s also grown to
over $2 million.

The profitability of compounding
interest works regardless of
interest rate. The higher the
interest paid, the faster the
growth. The more frequently
interest is compounded, the
faster it grows. Interest
compounded daily grows faster
than interest compounded
monthly, quarterly, or annually.
Banks, for example, will charge
you interest on your loans compounded daily (more money for them). And they will pay you interest on your
savings quarterly (less money for you).
You can go to http://investor.gov/tools/calculators/compoundinterestcalculator and check out different results.
Plug in your current principal and optimal monthly additions. See how much your money will grow over time.
Yes, compounding interest is profitable. But how can you get it? You know banks are paying nearly zero
interest on accounts. Bonds and stocks have higher interest or dividends, but the underlying asset is subject to
risk and market swings.
What good is earning 8% on $10,000 in stocks and
bonds, when the underlying $10,000 might drop to
$6,000? When you add market fluctuations into your
compounding interest growth, you end up with
remarkably less money.
Figure 1.4 shows compounding when you include stock market losses that reduce your capital.
Uninterrupted, this same 8% yield would give you over $9 million! (See Figure 6.2 in Chapter 6 of the
book)
Where Can I Find a Secure Place to Earn Uninterrupted Compounding Interest?
What investment or savings institution is free from market fluctuations?

One of the best kept secrets in the entire
financial services industry are the “Living
Benefits” found within certain kinds of life
insurance. It is a completely safe place to
compound your money. When you purchase whole
life insurance from a Mutual Life Insurance
Company, you actually own part of the company.
While you may have heard bad things about whole
life insurance, I encourage you to withhold
judgment. Read the truths in Chapter 4 and decide
for yourself.
The profits of a mutual life insurance company are
returned to you, the owner, through dividends.
Over the years as inflation has increased or
decreased, the dividends paid have ranged from
3% to 12%. At times, mutual insurance companies
have announced added dividends. Your money
keeps pace or stays ahead of inflation.
Mutual life insurance
company failure is
extremely low, much
lower than banks or
other stock companies.
Even in the few
cases of failing
insurance companies,
other companies step
in and make sure
policy owner’s money
is safe and insurance
policies are fully paid.

In their 200 year history, no policy owner has ever
failed to receive his or her life insurance payment. You
will get your death benefit from mutual life insurance
companies.
Unlike banks that can loan out 90 times more than
savers have deposited, insurance companies are
required by law and by contract to keep 100% of their
assets secure. That means your money is safe,
secure, and growing.
When you own a dividendpaying whole life insurance
policy you gain access to compounding interest that
increases your wealth day after day and year after
year. Each year it’s worth more than the year before. It
is also:
• Safe
• Private—it’s not reported to the IRS
• Not subject to market swings
• Keeps up with inflation.

Rebecca Rice
Rebecca Rice has been a financial planner for 25 years; her breadth of experience helps her clients
navigate all aspects of gaining financial freedom and wealth management. She is Managing Partner
and Founder of her firm, RebeccaRice and Associates, which was established in 2001.
Rebecca is considered a master of the Living Benefits of Whole Life insurance among her peers.
She can show you how to use Living Benefits to invest in real estate as well as build a business, pay
off debt, build financial freedom, gain retirement income, and produce generational wealth—because she’s done it all.
Rebecca holds two degrees from the University of Arkansas—a BSBA in Marketing and a BA in Management.
Rebecca’s peopleoriented, friendly personality and faith based heart help her relate to her clients on a personal level, allowing
her to build the best financial strategy possible. Her goal is to educate her clients on bettering their financial situations and offer
them strategies that best fit their needs.
A current member of the National AALU and Life Insurance Product Committee for Mass Mutual, Rebecca has also served as
past President of the GAMA Association through her relationship with a wellknown life insurance company.
She has written a book, entitled Multiply Your Wealth: Essential Secrets for Financial Freedom, published in 2014.
In her personal life, she is a Patron and Auxiliary member for Arkansas Children’s Hospital as well as supporting and working with
many other nonprofit organizations. Rebecca is happily married, has 3 children, 2 grandchildren, and 2 beloved dogs, all of
whom who live in Arkansas, close to her.

Additionally, money in a dividendpaying whole life insurance policy gives you “living
benefits.” You gain use of your money for many things while you are alive. You can:
1. Gain safety, control, freedom, and privacy
2. Borrow money low cost or netzero cost
3. Avoid credit checks or bank approval
4. Gain taxfree retirement income – yes! Taxfree
5. Loan your business money and save taxes
6. Recapture lost opportunity costs
7. Keep your money safe from bankruptcy and lawsuits depending
on individual state laws
8. Pay of debt faster
9. Create an emergency fund
How have the rich used this strategy to multiply their wealth, keep their money safe, and achieve financial freedom?

“Search for Multiply Your Wealth
on Amazon.” The price is $14.99.

7 Personal Finance
Questions to Ask Yourself
Before Getting a Mortgage
7 PERSONAL FINANCE QUESTIONS TO ASK YOURSELF BEFORE GETTING A MORTGAGE DR. TERESA R. MARTIN
re you ready for a mortgage? It’s a big step that requires careful planning. A mortgage will affect
your financial future for years to come.

By Dr. Teresa R. Martin
A

Before you sign that mortgage, consider these finance questions:
1.  What is your credit score? Credit scores affect mortgage rates.
•  Before buying a house, check your credit score. Should you raise your score to get a better
    interest rate? In general, high scores with no late payments during the last three years are enough
    to get good rates.
2. Are you capable of handling maintenance costs? It’s important to consider the cost of maintenance
before buying a house.
• The mortgage is only one part of the total cost of owning a house. Maintenance is another
      important piece. Will you be able to pay for a new roof or air conditioning system when the
   current ones wear out?
•  Does your monthly budget include enough savings for maintenance?
• It’s also important to consider DIY projects and hiring others to complete tasks. House
      maintenance can involve expensive and ongoing projects. Are you ready to pay for these costs?
3.  How secure is your job? Before signing a loan, evaluate your job security. Will the work last? How will you
handle changes?
• Evaluating your job future is
   part of planning for a home
purchase.
• Consider emergency funds
and savings in your plan. If
your job situation changes,
will you be able to continue
making monthly mortgage
payments?

4. Do you have the necessary financial
paperwork? Mortgage applications require a great
amount of paperwork. Lenders can ask for old tax
statements, check stubs, savings account statements,
and other information.
• If you have a high credit score, you
     may get a no documentation loan.
• It’s rare to get a no documentation
     loan, so it’s better to be prepared by checking your files and collecting the financial papers you
      may need.
5. Did you calculate the hidden expenses of owning a home? Home ownership comes with multiple
expenses that go beyond appraisal fees, property taxes, mortgage closing costs, and insurance.
• One of the hidden expenses of moving to a home is more bills. If you’re used to renting, then
   home ownership can change your monthly bills by adding new ones. You’ll add trash collection,
   water, recycling and sewage in most locations to the expense list.
•  Home insurance is higher than renter’s insurance. In addition, older homes cost more.
•  Homeowners' association fees are becoming more common in neighborhoods. You may be aware
   of condominium association fees, but are you ready to pay homeowners’ fees?
6.  Do you have an emergency fund? Emergencies can vary from broken dryers to flooded patios, so you
need to be ready for anything.
Is your emergency fund big
enough to handle common,
unplanned expenses?
• Emergency funds are a
better option than credit
cards or loans. Putting
enough money aside can
      help you avoid new debt.

7.  Are you applying for other credit? Mortgage lenders can see applications for other types of loans on your
credit report.
• Applying for other types of credit while trying to get a mortgage can hurt your loan.
   Mortgage companies view these applications as risks, so it’s better to wait before trying to get
   another credit card.
•  Applications for new credit lower your credit score and affect interest rates.
A mortgage is a responsibility that affects multiple areas of your financial life. Before you buy a house,
consider how your current financial situation will be affected and plan for emergencies.

Dr. Teresa R. Martin
Dr. Teresa R. Martin, Esq. is the founder of Real Estate Investors Association of NYC (REIA NYC).
REIA NYC (www.reianyc.org) is a premier real estate investment association serving the New York
City marketplace. Its primary focus and mission is “helping our members build, preserve, and harvest
multigenerational wealth” in the areas of real estate investments, business ownership and personal
development.

The Flip Side
Of Private Lending
By Sensei Gilliland
Founder of Black Belt Investors
THE FLIP SIDE OF PRIVATE LENDING SENSEI GILLILAND
hould you be a private lender? As you know I have been one of the most visible and vocal advocates of
wholesaling houses and remote rehabs. However, I have to admit that being a private money lender is
becoming increasingly attractive. I’d now rank it in the top three smartest ways to generate returns in
real estate. So who should consider this investment strategy? Why is this the best moment for this type of
investment? Who on earth should you consider lending to?
s
This is the Third Fastest & Easiest Way to Profit from Real Estate; is it for You?

Lending Versus Borrowing
I’ve been investing in real estate and training
investors from coast to coast for over 20 years. I’ve
connected with thousands of students and seasoned
investors can helped them get started and scale
wholesaling businesses and rental property
portfolios. I still love these two strategies, and I
wouldn’t ever give them up either personally or as a
recommendation for those looking to increase their
cash, wealth, and time freedom.
Still, being a private lender is getting more attractive.
For some this role may be the most attractive move.
For others is at least a core part of their total
financial plan.
The Wall Street Journal, Forbes, and the JOBS Act
have helped to raise awareness of the benefits of
private lending, and have no doubt aided this type of
investment becoming more mainstream. But who is it
really right for?
You might consider becoming a private lender if:
      a.  You have $10,000 or more free to invest
      b.  You are too busy to rehab homes on the
           weekends
      c.  Wholesaling houses just doesn’t appeal to you
      d.  You are extremely busy, and love your current
           career
      e.  You need more from your retirement savings
      f.   Your portfolio needs diversification or
           restructuring
The Advantages of Private Lending for 2016 &
Beyond
The main draws to private lending are:
• Truly passive income
• Above average returns
• Security of investing in real estate

Those individuals that have been investing in stocks
and bonds and gold may find there is no better time
to adjust their portfolios to include private real estate
loans. Gold prices are up there. Fund giant Bill
Gross has warned that we are in for negative rates
for quite a while. That means bonds and savings
accounts costing money, rather than protecting it.
Even the former CEO of Wells Fargo recently came
out and suggested we don’t put new money into the
stock market. That’s big. Real estate is about all
that’s left.
It doesn’t get much simpler than loaning your money
to someone else; letting them do all the hard work.
Then enjoying a share of the profits. That is if you
make good loans.
Who Do You Loan To?
The mechanics of making loans or partnering up is
relatively simple. The real minefield is lending on the
right properties, and to the right investors.
There is no shortage of buyers and real estate
investors, or other lenders who will be eager to borrow
your capital. Walk down the street with an “I sell
money badge,” and you should find plenty of takers.
Of course few might deserve it, or will be able to
handle it. They may have great marketing and
presentation materials, and the best intentions in the
world. But if they don’t have what it takes to deliver
then it’s highly risky.
So what should you be looking for in someone to lend
your capital to?
•  Experience
•  Long term, big picture thinking
•  A proven system
•  A sustainable business model
•  Have a strong advisory team
Of course the best borrowers or investment teams are
going to be equally selective about who they accept
capital from. I know I am. In most cases, when a bank or
credit card money sends me an offer I know it’s probably
a bad deal. I don’t need the money, and it is normally on
terms which are in their favor, and borrowing is doing
them a favor. I don’t know about you, but I don’t feel that
sympathetic with most high street banks. At least not to
the point where I feel I have to make them a profit. But I
do like helping ethical individuals, couples, and families
find a way to get ahead.


When I’ve entertained putting capital into my deals for others in the past, or making introductions between my strongest
investor students and private lenders I am looking at what extra value that lender brings to the table, and what extra value
they’ll receive in return. A good private lender is one who accepts fair terms for making a good investment, with a great
business or investor. They have good character (you don’t want to be caught up in money laundering or fraud). They can
work as fast as you do, are flexible, and understand the roles both the frontline investor plays, and are excited about just
collecting reliable, above average returns, while they go about being busy with the other things they really care about.
Could private mortgage lending be for you? With lower barriers to entry today, and us being busier than ever, it could
certainly be a good entry point into real estate for many, or an attractive option to add to the mix in a wellrounded portfolio.
Thinking about private lending? Get a free strategy session with Sensei by calling now 951.280.1900.

Sensei Gilliland
Founder of Black Belt Investors; Sensei Gilliland has been featured on the cover of Real Estate
Wealth Magazine, hosts ‘The West’s Top Ranked Real Estate Investors’ Club’ – 12 ROUNDS, and
has engineered several highly popular trademarked real estate investment systems. Sensei is the
goto source for serious investors and entrepreneurs seeking extremely effective, no holds barred
training, investment properties and funding. Claim your copy of his powerful Cash and Wealth Report here.

Mortgage Free
Real Estate
By Matthew Pillmore
MORTGAGE FREE REAL ESTATE MATTHEW PILLMORE
f you have a loan on your primary residence and/or rentals, you may have considered whether it would be
worthwhile to pay it off ahead of schedule. And if so, you’re not alone.
The debate over whether to prepay your mortgage is perpetual in the personal finance world.
Disclaimer: I am not a lawyer or an accountant. Nothing here should be construed as professional advice. I
suggest that you always retain the services of a competent professional to provide advice on your transactions.
I

Pay Off Your Mortgage or Invest? The Math
Says…
On one side, some experts argue you should NOT
prepay your mortgage if you are locked in at a low
interest rate. Their reasoning: You would be better off
INVESTING your money where a reasonably
diversified stock portfolio can expect to earn at a
higher rate of return on average over the long run.
Add in the home mortgage interest deduction you can
take on your federal taxes and, they say, you would be
silly to prepay your mortgage and miss out on those
perks.
To this group, the question is just about math. After all,
why would you prepay a loan at 3% or 4% and lose
out on part of a valuable tax deduction when you could
invest that money instead and earn considerably
more?
But There’s a VERY Important Side to
Prepaying Your Mortgage, Too
Still, there are plenty of experts who forge ahead with
their mortgage prepayment plans. My parents
(including a CPA father) fell squarely in that category.
of taking the standard 30 years to pay off their
mortgage, they paid it off in well under 10 years.
Ask him if he cares about the tax deduction they
missed out on, and he’ll probably look at you like a
crazy person. Why? Because the decision to prepay
was never JUST about the math to them; it was
about their financial freedom. And math aside, they
have never regretted their decision to pay off their
home and become entirely debtfree.
Most people agree with that sentiment, eventually.
Most, just don’t like debt. It’s as simple as that.
But others prefer a deeper analysis.
Analyzing the Pros and Cons
For starters, let’s take a look at what the home
mortgage interest deduction really means.
The easiest way to figure out your home mortgage
interest deduction is to look at your effective tax rate.
Say your overall tax rate is 22%, for example. On
average, the home mortgage interest deduction
reduces your taxes by $22 for every $100 you pay in
mortgage interest.

That’s a nice perk, but there’s a caveat. Your home
mortgage interest deduction is only valid for the
amount you deduct over and above the standard
deduction, which is available to taxpayers who don’t
itemize their returns. The standard deduction for
married spouses filing jointly was $12,400 in 2014.
So what does that mean? Simply put, if you don’t
itemize your taxes, your home mortgage interest
deduction is worth nothing. And even if you do, it’s
only worth what it helps you save over the standard
deduction that anyone can take. In many cases, this
drastically reduces the value of the home mortgage
interest deduction to the point where it’s barely worth
considering.
But what about those lost investing returns? When
you ask people whether or not they prepay their
mortgage and why, you’ll find plenty of skeptics who
balk at the idea of carrying longterm debt in favor of
investing their extra dollars in the stock market. And
when it comes to who is “wrong” or “right,” there are
several ways to look at it.
The interest you save by prepaying your mortgage is
a “sure thing.” Many people are happy prepaying
and banking the extra money they save on interest,
even if it’s less than they may have earned by
investing their extra dollars instead.
A Balanced Approach
As someone who loves leverage but despises (ALL)
debt, I see both sides of the issue. And that’s why I
personally take (and teach) others to consider a
balanced approach.
My only debt includes what is used to advance the
assets and income growth of my plan, but is paid
back strategically to $0 as quickly and safely as
possible. I don’t see the reason to choose between
investing extra money OR prepaying my mortgages,
so I rely on Debt Weapons™ to do both faster.
What About Debt Weapons™??
Debt Weapons™ are tools that allow any consumer
to achieve 1 or more of 7 highly financially beneficial
purposes.
1) Maximize Cash Flow
2) Compress Amortization Schedules
3) Replace Inadequate Bank Accounts
4) Invest More Quickly & Safely
5) Minimize Total Interest Costs
6) Enhance & Protect FICO® Credit Scores
7) Quickly Increase Financial Safety and Emergency
Reserves
To be clear, VIP Financial Education does not
provide or offer Debt Weapons™.

We do the research for our Coaching Members in order to help them decide where to go to get the right Debt
Weapons™, at the right time, to accelerate their unique goals.
Just like exercise equipment can injure you when used incorrectly, Debt Weapons™ can also be quite harmful if
you access the wrong one or use the right one the wrong way.
Applying for any Debt Weapon™ without knowing the proper questions to ask, can lead to several negative
consequences. For example, credit scores can rapidly decline, you could access the wrong Debt Weapon™ for
your intended purpose leading to unforeseeable costs and terms, possibly delaying your goals even further.
That seems like a good compromise to me. Still, there is nothing wrong with taking sides on this issue.
When you hate debt, you want to put it behind you once and for all, and that’s understandable. But it’s also
understandable for someone to make their decision based solely on the numbers. After all, it’s hard to argue
with math. At the end of the day, we all have to do what is best for our families – and what helps us sleep best
at night.
So, should you pay off your mortgage quickly? It is, and always has been, up to you, yet by joining us at the
upcoming event with Realty 411 you will learn how YOU too can rely on Debt Weapons™ to take a more
advanced approach and achieve BOTH simultaneously, far more quickly.
Matthew Pillmore
President
VIP Financial Education


Becoming Your Own
Banker with The Infinite
Banking Concept™
BECOMING YOUR OWN BANKER WITH THE INFINITE BANKING CONCEPT JAMES NEATHERY
he Infinite Banking Concept is a method which allows any individual or business owner to Become Their Own
Banker using a financial tool that has been around for over 200 years.
People can use this strategy to create their own private economic system allowing them to control the banking
function in their lives.
This allows the practioner of IBC to capture the equivalent of the interest they pay to 3rd party lenders over their lifetime,
which is significant. They also earn the equivalent of dividends typically earned by the banks when using bank financing.
T
By James Neathery

IBC equates to building cash in a preengineered tax
free trust then using that cash to finance everything
you were going to finance anyway i.e., autos, real
estate, retirement accounts, vacations, education
etc.
The fact is we finance everything we purchase. We
either pay cash and lose interest we could have
earned or we formally finance and pay someone else
interest; there are no exceptions to this fact whether
the reader recognizes this or not.
The Infinite Banking Concept, Becoming Your Own
Banker is an education in banking, finance and
properly structured dividend paying whole life
insurance issued by a mutual company. It takes
some unlearning as well as learning to grasp this
simple concept. The Infinite Banking Concept is very
simple but seems difficult partly due to the financial
noise that permeates our lives today.
If you would like to learn more, go to:
bankingwithlife.com and purchase the original text
Becoming Your Own Banker, Banking With Life DVD
and How Privatized Banking Really Works.
We have thousands of clients using this method to
build and maintain control of their wealth
generationally.   One of my favorite examples is of a
client in the construction business. He uses IBC to
purchase loads of rebar, a commodity that fluctuates
in price.  He buys at a volume discount allowing him
to outbid his competition when bidding construction
jobs.  Business owners often use this method instead
of lines of credit (which the bank controls); real estate
investors can use this instead of hard money.
I am a student of my profession. While attending a
two day seminar in 2004 I purchased the book
Becoming Your Own Banker with several other books
the speakers referenced. After reading BYOB I
restructured my life insurance and investments and
have been using this method personally and teaching
my clients how to implement this concept into their
lives.
The Infinite Banking Concept has changed my life, my
practice and the lives of 1000’s of clients.
If you give this concept a thorough investigation,
without prior contempt, it will change the way you look
at money.
Order the book Becoming Your Own Banker and the
Banking With Life DVD today and I will send you the
book How Privatized Banking Really Works!

James Neathery
CEO, James C. Neathery and Associates
James Neathery specializes in providing strategic financial advice based on decades of research
and experience in the fields of finance and economics. James is a disciple and student of R.
Nelson Nash, the creator of the Infinite Banking Concept™. He is also a student of the Austrian
school of economics. James holds several designations, maintains multiple affiliations and is
active in the financial services industry. He has been in the life insurance industry for more than 24 years, has been
educating clients and personally practicing the Infinite Banking Concept™ for nearly a decade.
James C. Neathery & Associates, Inc. has provided sound, successful advice to thousands of clients. Over the years he
has helped them protect millions of dollars in wealth and assets through several boom and bust cycles in the U.S.
economy.
James is the Executive Producer of the bestselling documentary on the Infinite Banking Concept, Banking With Life. The
powerful information in this film is being used by financial professionals across the country to educate their clients on how
to take control of their money by solving the banking equation in their lives.here.
About Infinite Banking James Neathery Our Team Nelson Nash


Many U.S. Communities
Seeing Real Estate Inventory
and Lead Shortage
By Leon McKenzie,
Managing Partner, US Probate Leads
MANY U.S. COMMUNITIES SEEING REAL ESTATE INVENTORY AND LEAD SHORTAGE LEON MCKENZIE
s a professional real estate investor, keeping a pulse on the changes in the market can be the
difference between having a profitable year and seeing losses in your business. Seeing these trends
and knowing how to react to them can be one of the most critical skills for any individual working in
the property business.
A

One of the most pronounced trends in the market
recently has been the tightening of real estate inventory
and, consequently, a shortage of leads.  This trend has
paralyzed many real estate professionals and prevented
them from finding and making the deals that will take
their business to the next level.  The contributing factors
to this problem come from many areas.  Knowing a bit
about the factors that are causing the issue will help you
to navigate the current changes in the market.
Contributing Factors to Real Estate Shortage
There are a myriad of factors that may be affecting your
real estate business and your ability to find good
properties – both on the residential and the commercial
side – that will lead to profits and excellent options for
your portfolio.  Alan Heavens of the Philadelphia Inquirer
reported, “Research from the National Association of
Realtors shows the U.S. needs to build 1.3 million to 1.7
million housing units annually to keep pace with yearly
household formations averaging 1 million to 1.4 million,
in addition to replacing the 300,000 obsolete dwellings
that are razed each year.  Statistics released two weeks
ago by Freddie Mac, however, show that only 910,000
units were started in 2008 and 550,000 in 2009.
Projected starts for 2010 are better, but just 700,000
units.”1

Decreased construction means that more
homeowners and business owners are staying
where they are in terms of their location.
Homeowners and business owners who would like to
relocate to a new home or office space simply don’t
have any options from which to choose.  This means
that people are more likely to pursue the option of
remodeling or adding on space rather than going out
into the real estate market and looking for a new
residential or commercial property.
Heavens said that it can be challenging to try to
predict how much space will be needed in any given
year, “Predicting how much housing is needed
involves a complex calculus that weighs hard
statistics (newhome starts, sales of previously
owned homes) against a certain amount of
demographic tealeaf reading (householdformation
forecasts). Thus, there isn't complete consensus on
what will be enough. ‘At current levels of housing
construction and demand, the nation has just about
two years' worth of excess vacant homes for sale
and rent,’ said Moody's Economy.com chief
economist Mark Zandi.”2 Without additional
construction, many homeowners and those looking
for commercial space may find themselves
frustrated.


Here are just a few statistics that support the issues with the current real estate market according to Heavens:
• “At the current sales pace nationwide, the supply of previously owned houses would take 7.8 months to
exhaust, not including the vast "shadow market" (houses whose owners are waiting to sell until real estate
recovers) and "distressed properties" (foreclosures and bank repossessions).
• The inventory of unsold new houses is at 9.1
months of supply, and the volume for sale is flat
at 234,000 homes — a 30year low.
• At the end of the fourth quarter, 24 percent of all
U.S. homes with a mortgage were worth less
than the loan balance. The housing vacancy rate
in the fourth quarter was 2.7 percent.
• The U.S. homeownership rate is 67.2 percent,
down from its peak of 69.2 percent in fourth
quarter 2004 and decimated by record foreclosures.”3
Booming Populations Contribute to Shortage in Some Areas
With the population in the United States continuing to shift to areas with temperate weather, positive economic
conditions and those that don’t have issues with fresh water supplies, some areas are seeing a boom in
population that no level of construction can meet. Connor Hyde writes, “The Sugar Land and Missouri City area
experienced a record number of home sales in 2014. However, population growth in the area paired with
various construction woes has led to a low home inventory, causing a rise in home prices and a dip in sales
since January. Since 2012 Sugar Land and Missouri City real estate agents have classified the area’s housing
market as a seller’s market due to the decreasing inventory of available homes and climbing home costs. As a
result, many of Fort Bend County’s masterplanned communities are struggling to keep up with the demand
brought on by the influx in population in the region.” 4
In fact, these changes to the market have driven up the prices of the homes that are currently on the market.
Hyde quoted a local real estate agent, Shad Bogany, who has seen these changes first hand, “‘We have more
customers than we have houses to sell, and we are getting multiple offers on houses,’ said Shad Bogany, a real
estate agent with Better Homes and Gardens Real Estate in Sugar Land and Missouri City. ‘We do not have a
lot of houses to sell, [and] we have the builders, who have been the biggest pushers of home sales in Fort Bend
[County], behind in construction.’”5

Issues with construction in population booming areas
face a twopronged challenge – not enough qualified
workers for residential projects and not enough
funding.  Hyde writes, “Home developers and cities
are competing with projects in the Greater Houston
area, such as the construction of the new Exxon
Mobil campus in Spring and the continued
construction of the Grand Parkway. These major
projects have contributed to the lag in home
construction as there are fewer skilled laborers
available. ‘That is exactly why we cannot keep up
with building homes fast enough,’ Reichert said.
‘There are just not enough workers out there to build
homes [and] builders struggle on a daily basis to find
workers.’” 6
While all of the construction that is being completed
in booming areas may seem like a good thing, there
are also ancillary issues.  Hyde writes, “The shortage
in laborers and influx of construction projects has
also led to an increase in the price of construction
materials, which has directly caused housing prices
to increase, Reichert said. Since 2011 material costs
have increased by 11.7 percent and are expected to
climb through June 2016, according to the national
construction management company Turner
Construction Company’s price index.”7
Not only are homeowners faced with fewer
properties to choose from and fewer new
construction projects, but the new
construction they do find may cost the
average homeowner more money than they
can afford to spend.  With rising construction
material costs, the associated increase in
new construction prices may prove to be too
much for homeowners.  These homeowners
may end up staying in their current home to avoid the
problem.
Changes in Season Effect Inventory
Another contributing factor to the shortage in real estate
inventory is the upcoming change in season.  While spring
markets generally show expansion as more and more
property owners put their homes on the market, the
opposite it true during the fall and winter months,
especially in the cold weather climates. Said Lawrence
Yun, “As winter approaches, inventory will slide further.
Few homes are newly listed after Thanksgiving.
Historically, inventory tends to be 15 percent lower in
winter than summer. Last year’s seasonal decline was
even more dramatic, at 25 percent. We hope we won’t see
an inventory decline of that magnitude this winter. Home
values rising much faster than income growth will markedly
cut into housing affordability.”8
The contraction in the market will pull many properties off
of the market with buyers still looking to purchase homes.
Being able to find a property during any time of the year is
becoming a significant challenge for buyers who want to
have several homes they can investigate.

Alternative Leads are the Solution
Is there a way to solve the lack of leads currently
occurring in the real estate market?  There is.  For
real estate investors who want to continue to profit
no matter the market, looking to alternative leads is
the best strategy. These leads – found in the
probate, divorce and bankruptcy industries – are
the best way for investors to find homes and
commercial properties despite the shortage in the
United States.
Probate leads are plentiful. With experts
estimating that more than 30,000 probates are filed
each month throughout the United States, each
and every county has new options of homes,
personal property, vacation homes and commercial
real estate that are for sale. Executors,
responsible for the sale of property held by
someone who has passed, are under an obligation
from their local court jurisdiction to sell the property
in order to close the probate.  What does this mean
for you as an investor?  For real estate investors,
probate properties offer discounted prices,
sometimes up to 30% to 50% off of current market

prices, on homes and other property located in
some of the most desirable areas of the region that
you work in.  Executors are generally eager to look
at all offers for property as they need to sell the
property in order to pay medical bills, taxes, legal
fees and funeral expenses for their loved one.
Divorce and bankruptcy leads are also another way
to find great deals on property.  Usually governed by
the local court system, these leads can also provide
excellent options for discounted prices.  With divorce
and probate leads it is critical to have your attorney
review all of your documentation especially during
your first experience working in this market. The
language used in the sales documents can be
different that is used in traditional offers due to legal
requirements.  Ask your legal counsel to ensure that
there are ways for you to exit divorce deals if the
parties do not cooperate. As an investor it is not
wise to have your deal stalled due to marital discord.

Accessing Alternative Types of Leads
The best way to access these alternative types of leads is to use a lead service that can help you to locate the
most current and viable option for your business.  U.S. Probate Leads, the industry leader in lead coordination,
offers probate, divorce and bankruptcy leads in every county in the United States. Our qualified, trained
professionals visit courthouses to collect the most uptodate information on what types of property is available
through the probate.  Using an expert service will help you to save time on trips to the courthouse and give you
more time to visit properties and make contact with Executors. We offer a full range of services, including
webinars, seminars, books, communication software and even individualized mentoring.  Call us today or visit
us at www.usprobateleads.com for more information.
Sources:
1   http://www.matrixrealestate.com/aboutmatrix/marketnews/slowingconstructioncouldleadhousingshortageexpertssay
4   http://communityimpact.com/2015/05/06/lowinventorieslaborshortagescontributetorisinghomeprices/
8   http://realtormag.realtor.org/newsandcommentary/economy/article/2012/11/seedshousingshortage

Solo 401k:
A Tax Saving Strategy
for Real Estate Investors
By Dmitriy Fomichenko
SOLO 401K: A TAX SAVING STRATEGY FOR REAL ESTATE INVESTORS DMITRIY FOMICHENKO
f you’re a taxpaying citizen, this quote is likely to make perfect sense to you. Nobody loves taxes, at least
at a deep intrinsic level, irrespective of it being a responsibility we must share. According to a report
published on the Motley Fool, a finance website, out of the gross tax collections worth $2.86 trillion in
2013, individuals paid $1.54 trillion or 54% of them, with an average individual tax bill of $8,548.
I

However, the average individual tax bill doesn’t project a clear picture of average tax rates. For an instance,
the average person earning between $125,195 and $175,817 was taxed at 21%. If you made $150,000
during the given financial year, you would’ve paid $31,500 in taxes. That’s nearly four times of the average
individual tax bill in 2013.
If you’re a fairly successful real estate
investor, saving on taxes could be a
potential challenge for you, and you
might have been spending a lot of time
figuring out effective tax strategies.
SelfDirected Solo 401 K Plan: 3 Tax
Saving Strategies For Realtors
At Sense Financial, a major part of our
clientele involves real estate
professionals, seeking effective methods
to cut their taxable income. As a self
directed Solo 401k plan provider, we
help our clients cut their taxable income
by a huge margin; precisely up to
$59,000 in 2016.
A Brief Insight into SelfDirected Solo 401 k Plan
Solo 401 k plan is a qualified retirement plan from the IRS,targeting owneronly businesses and selfemployed
individuals. As a part of the annual contribution limits, you can contribute up to $53,000 in 2016 along with a
catchup contribution of $6,000 for professionals above the age of 50 years.
The primary attraction of this plan is its ability to invest in a plethora of investment options, including real
estate, tax liens, tax deeds, mortgage notes, private lending, and private businesses along with the traditional
investment options.
Contribute up to $59,000 of Your Real Estate Income in 2016
If you are a realtor with no fulltime employees, you can contribute up to $59,000 in 2016. The contribution
includes a salary deferral contribution along with a profitsharing contribution.

Salary deferral contribution: Under the salary
deferral contribution, you can put up to $18,000 in
2016along with a catchup contribution of $6,000 for
professionals above the age of 50.
Profitsharing contribution: The profit sharing
contribution allows you to contribute 20to 25% of
your business income, with maximum cumulative
contributions of $53,000 or $59,000, for
professionals above 50 years, in 2016.
Case I: Melinda,41 years old and a real estate
investor operating as a corporation, had a net
income of $180,000 in 2015. She could contribute up
to $18,000 under salary deferral contributions along
with profitsharing contributions of $35,000, cutting
her taxable income by $53,000 in 2015. It is
important to consider that although 25% of her
business income is$45,000, Melinda can only
contribute up to $35,000, as the maximum
contribution limit comes into play.
Case II: Bob, 53 years, operates as a parttime real
estate professional, generating an income of $60,000
from his real estate business in
2015. Bob contributes $6,500
in his companysponsored
retirement plan, which cuts his
salary deferral contribution in
the Solo 401k plan to $17,500
in 2015, making net salary
deferral contributions of
$24,000. As a single member
LLC, Bob can further contribute
up to 20% of his business
income or $12,000 in 2015,
allowing him to cut his taxable
income by $36,000.

Find out your annual contributions with our
contribution calculator.
Purchase Rental Property with Solo 401 k plan
& Defer Taxes on Rental Income
If you already have a selfdirected Solo 401 k plan,
start purchasing rental property within your
retirement account. The IRS allows investing in real
estate through a Solo 401 k retirement plan, which
means you have the option to defer taxes on your
rental income until distributions.
You will have to purchase the property through your
Solo 401 k plan, and if there are insufficient funds in
your account, you can use nonrecourse financing to
fund the transaction. Unlike IRA plans, the use of
nonrecourse financing through a Solo 401 k plan
does not trigger any additional tax. Make sure that
the maintenance cost of the property goes through
your retirement account only, and the rental income
comes directly into the plan as well.

A large part of our clientele is involved in rental
property investment, including single family homes,
multifamily apartments, and even commercial real
estate. Investing in a rental property with your
retirement plan can help you restrict your tax
burdens while offering the benefits of real estate
investing.
• Taxdeferred growth of rental income
• Ability to finance property purchase using non
recourse loan without paying UBIT tax
• Retirement account pays for maintenance experienced
Pay Taxes on Capital Gains at the time of
Withdrawals Only
The same rules apply to the capital gains realized
from the sale of a property within your Solo 401 k
plan. Unlike regular real estate transactions, you can
defer taxes on your capital gains to as far as your
withdrawals. It allows you to keep the entire gains
within your plan, and these funds are available for
your upcoming real estate transactions.
Every now and then we hear real estate success
stories from our clients but this one was even
beyond our imagination.
One of our clients,
Bill, invested in an
organic mango
farm in Panama,
spread across 2.5
acres, and it was
managed by a local
turnkey operation company. His next investment
came out to be a Neem tree farm in Brazil, and he
was able to make these investments with a self
directed Solo 401 k plan. Any income procured from
these farms in the future will directly go into the self
directed account.
A selfdirected Solo 401 k plan helps you in creating
a diversified retirement portfolio while offering
complete freedom in asset selection. It is time to
leverage your retirement savings and build a
retirement account that will truly outlast you.
Dmitriy Fomichenko
Dmitriy Fomichenko is President and Founder of Sense Financial, a leading provider of retirement
accounts with "Checkbook Control": the Solo 401k and the Checkbook IRA. To learn more about
the Solo 401k plan, please visit sensefinancial.com or email us at info@sensefinancial.com.

Here’s The Capital You Need
HERE'S THE CAPITAL YOU NEED DANA BERSCH
here’s a whole buffet
of real estate deals out
there. With powerful
unsecured credit lines
from Stonebridge Capital Group
you can cherry pick the deals you
want ondemand.
At Stonebridge Capital, we don't
believe you need a winning lottery
ticket to realize your financial
dreams. There is a constantly
moving “good luck conveyor belt”
in front of today’s business
owners, entrepreneurs, and real
By Dana Bersch
T
estate investors. The catch is that
“you need the money to take
advantage of those opportunities,
and good deals simply won’t wait
for you to find the money.”
The Biggest Problem You
Face Today
The most pressing issue on the
current landscape isn’t a lack of
deals, buyers, or renters, “the
biggest problem facing business
owners today is a lack of access to
capital.”
The data shows that most
businesses fail because they just
run short of cash flow. They can
no longer pay the bills, push out
great marketing, or seize on the
best opportunities. Some fail
because they don’t appreciate
their need for funding, or how
much they need. Others are stuck
with rigid funding sources and
arrangements that don’t serve
them well, or simply haven’t found
an attractive source of financing.
Ultimately the main source of
failure is all about the money.

We are constantly reminding all real estate investors and entrepreneurs
that they are in business. “Flipping houses is a business.” So is acquiring
and operating rentals, wholesaling, and note investing, and so on.
I know the challenges these entrepreneurs face well. As a business
owner for more than 30 years, I understand the pitfalls small businesses
have in having access to capital, which is critical for their success.
Before I started Stonebridge Capital in 2006, I was involved in several
industries, including manufacturing, healthcare, restaurants, real estate,
oil and gas investments, and entertainment.
Over the last decade, the Stonebridge team has been working with
hundreds of entrepreneurs, investors, and business owners to help them
recognize their need for additional capital, position themselves to obtain
the best funding, and get generous lines of credit.
The Unsecured Credit Line Advantage
Stonebridge Capital specializes in providing business and personal lines
of credit from $25k to $250k.  We also have access to bank term loans,
which can add to the amount of funding.
This credit is working capital that
real estate investors, entrepreneurs,
and business owners can use for
just about anything they need. That
means acquiring new properties,
down payments, paying down high
interest debt, rehab work,
marketing, filling the gaps when
tenants are late on rent, etc.
Credit lines offer a huge advantage
to real estate professionals. You
only pay on the money you are
actively using, it helps you qualify
for the mortgage or hard money
loan, covers expenses while you
are involved in your rehab, and
once you cash out on deals and
pay it down, the money is right
there to use again, without all the
application and appraisal hassles
and expenses.
We receive a sizable portion of our
business from referrals from
mortgage brokers and hard money
lenders for clients who need to
increase their down payment to
qualify for their loan and to bridge
the funding gap from what they
provide too. Additionally using an
unsecured line of credit means no
liens on your properties, and never
diluting your business ownership
or giving up control as with equity
fundraising.

Features to Love:
•   Funding in just 10 to 21 days
•   24 hour preapproval
•   No application fee
•   0% interest for up to 24 months
•   Stated income
•   New startups OK
•   680+ FICO score
•   Free guidance on maintaining, optimizing, and growing your credit
Don’t Prejudge Your Credit
If an extra $250,000 could help your business (and you can bet it can), “don’t prejudge your credit.” There are
no application fees, and you can find out how much of a line you can get within 24 hours.
Check it out and get preapproved online at www.sbcapgroup.com/sb or call 480.626.1772.

ORBA LINDA, Calif., Aug. 16, 2016 – Real estate professionals in California wait on pins and needles
as they navigate California’s unusual real estate market. Prices continue to increase under the
pressure of recordlow housing supply, lifetimelow interest rates, and bullish demand. How high can
California go? Is a crash inevitable in 2017?
Y
EXPERTS TO DISCUSS CALIFORNIA'S REAL ESTATE BUBBLE AND DIGITAL DISRUPTION AT CHARITY EVENT BY THE NORRIS GROUP AARON NORRIS
Experts to Discuss California’s
Real Estate Bubble and Digital
Disruption at Charity Event
Organized by The Norris Group
By Aaron Norris
Top officials from Zillow, Fannie Mae, National Association of Hispanic
Real Estate Professionals, and PropertyRadar join real estate analyst
Bruce Norris on Oct. 21st at the Nixon Presidential Library for The Norris
Group’s 9th annual “I Survived Real Estate” charity gala

REI WEALTH MONTHLY - Issue #33 Complimentary Preview Issue FREE REAL ESTATE INVESTOR MAGAZINE

REI WEALTH MONTHLY - Issue #33 Complimentary Preview Issue FREE REAL ESTATE INVESTOR MAGAZINE

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REI WEALTH MONTHLY - Issue #33 Complimentary Preview Issue FREE REAL ESTATE INVESTOR MAGAZINE