The Profit Atlanta - January 2013 - Atlanta Georgia Real Estate Investing Newsletter by Atlanta Real Estate Investors Alliance

JANAlliance 2013 • JAN 2013 Atlanta Real Estate Investors

Happy 2013!

The Five Critical Steps to Success By Ron LeGrand

here’s a lot of ways to make a million bucks, but most involve some kind of business, and that business must have the potential to achieve a high income, or all one has is a low paying job he/she happens to own. We all have a choice. So, why not choose a business that can make you rich? I know a dentist who spent $400,000 on two sandwich shops which his family runs and can barely break even. There’s no way to sell because there are hundreds on the market and a business making no money isn’t worth much, especially when it has no upside potential. He’s headed for a $400,000 seminar,

but hey, we all take them and look how much smarter he’ll be the next time. In 1982, I was bankrupt broke, working as a mechanic, 35 years old and clueless. I got into a heated argument with my wife over a washing machine. She wanted a new one and I wanted to fix the old one because I didn’t have the $150 to spend. That night, there was no sleep. All I could think about was how big of an “a—hole” I was for arguing with a mother of four whom I’d already been married to for 17 years because she wanted to wash clothes for her family. The next day, I started looking for a way out. I didn’t want to live like this for the rest of my life. There had to be something I could do to make a better living. My way out was real estate. I started reading books and attended a seminar to get me started. Greed and hunger took over from there. Before I knew it I’d bought and sold several hundred houses without using my money or credit, and still do it today, over 2,000 now. I tripled my income easily the first year, and it continued to climb for years thereafter until I started creatcontinued on p6

Ron LeGrand will be teaching you how to “Quick Turn Real Estate for Fast Cash” at the Atlanta REIA Main Meeting on January 7th. Join us and let Ron show you how to make 2013 your most profitable year ever! See http://atlantareia.com for more information.

MAIN MEETING

Monday, Jan 7th

Crowne Plaza Ravinia Hotel 4355 Ashford Dunwoody Atlanta, GA

5:30pm - 9:30pm usiness Bring Your BFly Cards & ers

IN THIS ISSUE

The Five Critical Steps to Success By Ron LeGrand........................................................................ 1 Your Ground Game for Generating Leads By Dustin Griffin....................................................................... 2 Answers to Your REI QuickBooks Questions By Karen Bershad..................................................................... 7 Atlanta Real Estate Market Has Hit Bottom! By Russ Hiner............................................................................ 8 Structuring Your Business for Success! By Chris Littleton.................................................................... 12 Different Things You Can Use to Buy Real Estate Other Than Cash By Larry Harbolt..................................................................... 13 Real Estate Has A Sense of Humor By Deborah Harris.................................................................. 14 Note Buyers By Michael Vazquez................................................................ 15 Pre-Screening Sellers For Your Real Estate Investing Business – Part 1 By Kathy Kennebrook.............................................................. 16 WARNING! Short Sale Lender Has Mandated Deed Restrictions On Deed For Closing By Kimberlee Frank................................................................. 18 The Best Deals To Do in Real Estate in 2013 & Beyond – Part 1 By Tony Pearl.......................................................................... 19 New Habits for a New Year By Don DeRosa....................................................................... 20 Proving Lender Negligence and Fraud Part 1: The Paper Trail By Bob Massey....................................................................... 21 Real Estate IRA Investing Technique. . . By Jim Hitt.............................................................................. 22 The Winners and The Losers By Erven Kimble...................................................................... 23 Financial Calculator - A Wealth Builder’s Most Valuable Tool By Bill Cook............................................................................. 25 Membership Application.......................................................30 Meeting Calendar..................................................................32

Atlanta REIA, LLC

2700 Braselton Hwy, Suite 10-183 Dacula, GA 30019 P: 678-701-7160 • F: 770-216-1560 admin@atlantareia.com http://atlantareia.com

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Atlanta Real Estate Investors Alliance • JAN 2013

Your Ground Game for Generating Leads By Dustin Griffin, Executive Director of Atlanta REIA

re you tired of making offers on houses listed in the MLS only to have the price bid up by other investors and hedge funds? Well, that’s what happens when there is an inventory shortage and everyone is chasing the same leads. The minute a new listing hits the MLS, there are often multiple offers on the home by the end of the day. Instead of competing for the same small pool of leads, you need to generate your own leads… leads no one else knows about but you. You can do this by using many of the same methods and techniques that have been working for years such as… • Bandit Signs – Putting out we buy houses signs with your phone number and web address in and around the neighborhoods where you want to purchase will get the leads coming in almost instantly. Be sure to be aware of the sign ordinances in your area to avoid fines.

tor speech” describing what you do on the back. Make a point to hand out at least a dozen cards every day to everyone you meet. You never know who has a house for sale or who might know someone else who does. • Vehicle Signs – If you are a serious investor, you should consider getting some magnetic we buy houses signs for your vehicle. Alternatively, you could put semi-permanent vinyl lettering on your vehicle or get your entire vehicle wrapped with your marketing message. • We Buy Houses Apparel – You should get some clothing such as shirts, hats and jackets screen printed or embroidered with your marketing message and contact information so that where ever you go, people will know you buy houses and strike up a conversation with you.

• Flyers – You can distribute we buy houses flyers virtually anywhere to get the leads pouring in almost as soon as you put them out. You can flyer parking lots, neighborhoods and houses for sale. You can also have your flyers distributed with the local paper, on pizza boxes or by the postal service for about 14 cents each.

• Dialing for Dollars – Find houses for sale or rent in the local paper or on online classified ad sites like Craigslist, take down the owner’s number and then call them. It never ceases to amaze me how few investors are willing to actually pick up the phone and call anyone anymore. If you take the time to call, chances are, you will be one of the few who do.

• Business Cards – You should have some attractive business cards printed up with your contact information on the front of the card and your “eleva-

• Driving for Dollars – One of my favorite methods to find deals is to get in my truck and drive the neighborhoods where I want to buy houses. I

Atlanta REIA Main Meeting

look for listed houses, FSBOs and rentals, especially the ones that have been on the market for a while. I will flyer these houses or get out, knock on the door and talk to the seller. I also look for vacant properties and ugly houses that aren’t necessarily for sale and track down the owner to see if they want to sell. I often put out signs and flyers while I am driving for dollars to get sellers to contact me. These are just a few ways to generate leads. There are many more techniques such as using direct mail, bird dogs, networking, etc. The point is to pick a few of these methods and use them consistently to generate all the leads you can handle. If you do, chances are you will have very little competition for the leads you generate. And remember, most of the house leads you receive you will not purchase immediately for one reason or another. Just be sure to keep your leads and follow up with them repeatedly, month after month, until the houses are sold to you or someone else. You and your sellers will be glad you did. Have a prosperous New Year! Comment on this article online at http://atlantareia.com/?p=18867

About the Author: Dustin Griffin is the

1st Monday of Each Month at 5:30 PM at the Crowne Plaza Ravinia in Atlanta

See http://AtlantaREIA.com for details

Executive Director of Atlanta REIA and Tampa REIA and is also an entrepreneur, real estate investor, website developer, internet marketing enthusiast and a husband and proud father of two.

http://AtlantaREIA.com

Do YOU Really Want to Become Wealthy in the New Year?

Multi-Family Investing Workshop With David Lindahl January 5, 2013 from 8:30 AM to 5:00 PM Crowne Plaza Ravinia Hotel, 4355 Ashford Dunwoody, Atlanta, GA

Do you have what it takes to be rich? Are you investing your time, resources and effort to make this happen? If you answered “YES”, we are inviting you a guest to attend The Multi-Family Investing Workshop with commercial real estate expert, David Lindahl, on Saturday, January 5th, 2013 at the Crowne Plaza Ravinia Hotel in Atlanta, GA starting at 8:30 AM. Tuition starts as low as $19.95 for you and a qualified guest! This training event is going to be jam packed with commercial real estate investing lessons that you’ll be glad you didn’t have to learn on your own, the hard way. This practical, hands-on event will not only show you the ropes, but also keep you from getting tangled up in bad deals. You’ll learn how to get into the commercial investing game without a huge bankroll, how to read markets and buy at the perfect time, and how to lock in your profits early to guarantee a good deal. Dave will show how you can jump right into the Commercial and Multi-Family Real Estate Market and create profitable deals whether you have some experience, or no experience at all.

This is just some of what Dave will teach you… H How to create a monthly cash flow of $5,000 to $10,00 and become a millionaire within 5 years or less H How it’s possible to spend only 30 minutes a day, 4 times a week to get a deal profitable deal H Strategies you can use to invest in apartments even if you have no down payment, and lousy credit H The best and most profitable areas to invest in Atlanta in 2013 H How to get extremely wealthy while never dealing with tenants H Find properties that have the highest profit potential

H How market cycles in commercial investing can explode your wealth

HC reative ways to increase profits on multi-family properties

H How apartments make you wealthy safer and faster than other investments

HH ow to hire a good property management company

H How to find properties that have less competition and more profit potential

HH ow you can become a millionaire using 1031 exchanges in less than 4 moves

H How you can analyze a multi-family property in less than 3 minutes

HH ow to get motivated sellers to call you to sell you their buildings

H Dave’s multi-family formula for determining property values

HH ow it is far less risky to own multi-family properties as opposed to single family homes

H How to attract all of the private money sources you will ever need to fund your commercial deals

HP lus much more!

2 for 1 Early Registration Special

Gold Members $19.95

Silver Members $29.95

NonMembers $49.95

This offer expires soon. RSVP Now and Save!

Atlanta Real Estate Investors Alliance • JAN 2013

Atlanta REIA’s mission is to help insure our members real estate success by providing affordable, quality real estate investing education; frequent, fun real estate networking opportunities; and ongoing community outreach programs to help build, renovate and repair homes for needy Atlanta families while improving our local community.

2700 Braselton Hwy, Suite 10-183 Dacula GA 30019 P: 678-701-7160 • F: 770-216-1560 E: admin@atlantareia.com W: http://AtlantaREIA.com Dustin Griffin Executive Director P: 678-701-7160 F: 770-216-1560 E: dustin@atlantareia.com

Joe Thompson Leader of Haves & Wants Meeting and Speed Marketing Session P: 770-403-3227 E: joethompsonjr@hotmail.com

Christine Griffin Assistant Director P: 678-701-7160 F: 770-216-1560 E: chrissy@atlantareia.com

Karen Bershad Director of Membership & Leader of the Small Business Group P: 770-356-1234 E: karen@smallbusinessadvisor.biz

Jeff Nix Director of Business Membership P: 678-776-8861 E: jeffnix@gmail.com

Leslie Mathis Leader of Atlanta REIA West P: 678-895-1460 E: lesliemathismentor@yahoo.com

Gordon Catts Director of Programs, Leader of Movers & Shakers, Atlanta REIA South & Mountain REIA P: 404-454-3567 E: cattsgr@yahoo.com

Reginald Jackson Leader of Atlanta REIA South P: 404-427-8797 E: reginald_j_2002@yahoo.com

Alan McDonald Director of AVS, Leader of the Beginning Investors Group & Cashflow Group P: 770-369-0446 E: mcdonaldalan9@yahoo.com

Russ Hiner Leader of Creative Deal Structuring Group and Mastermind Group P: 404-660-4289 E: Russ@rhiner.com

LEGAL DISCLAIMER: Atlanta REIA, LLC promotes practical knowledge of real estate investment though education, discussion and networking. The information, views and opinions expressed in the publication do not necessarily reflect the views, policies and opinions of Atlanta REIA, LLC or any of its members and sponsors, nor does mention of certain trade names, products, services, individuals or organizations imply endorsement by Atlanta REIA, LLC or its members or sponsors. The information presented in this publication is made available for informational purposes only and is not to be construed as financial or legal advice which should only be obtained through a competent attorney, accountant or other qualified professional advisor. Atlanta REIA, LLC does not pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. Atlanta REIA, LLC recommends you perform your own due diligence and seek appropriate legal, accounting, or other professional advice before making any investment. Atlanta REIA, LLC disclaims any and all liability for any actions or inactions taken by readers of this informational material or as a result of communications from or to its officers, directors, employees, contractors, partners, members, sponsors and affiliates.

Aaron McGinnis Leader of the Gwinnett County Group P: 404-788-3625 E: aaron.mcginnis@craftbuilt.net Steve Brown Leader of Cash Cows Commercial Group P: 770-378-6235 E: chase_sb14@bellsouth.net Don DeRosa Leader of Mobile Real Estate Rockstars Group P: 678-410-7352 E: donderosa5@gmail.com Rock Shukoor Leader of I Love Marketing Group P: 678-938-4776 E: realrateb@gmail.com Michael Vazquez Leader of Spanish Investors Networking Group P: 678-951-9222 E: michaelp.vazquez@gmail.com Bob Massey Leader of Short Sale & Foreclosure Group P: 706-816-9820 E: bob@foundationpublishingllc.com Mark Galey President of Fuller Center of Atlanta P: 404-867-3258 E: mark@magnetconstruction.com Aislee Jackson Director of Savannah REIA P: 912-695-0665 E: aislee@aislee.com

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Main Monthly Meeting January 7

Crowne Plaza Ravinia Hotel 4355 Ashford Dunwoody Atlanta, GA

Atlanta REIA Main Monthly Meeting & New Year’s Party “Fast Cash With Quick Turn Real Estate” with Ron LeGrand

Atlanta REIA is very excited to announce that real estate investing legend and millionaire maker, Ron LeGrand, will be speaking at our Atlanta REIA Main Meeting on January 7th at the Crowne Plaza Ravinia in Atlanta which starts at 5:30 PM. Ron has created more millionaire real estate investors than anyone else on the planet and you can be one of them! As you know, America is on sale right now. Hedge funds and foreign buyers are buying up houses in Atlanta and around the country as fast as they can and you can too. If you’re not making obscene amounts of money in real estate right now, you’re missing the best opportunity of your lifetime to get rich. So don’t sit this opportunity out on the sidelines and let it pass you by since you don’t need lots of money, credit, experience or a license to get started. Instead, come join us and learn from one of the best minds in real estate business… •

Making Big Money With No Money Or Credit – Ron will show you where the big money is in real estate and how you can get it with NO money, credit or risk on your part.

•

Making Huge Profits On Over Leveraged Houses – Ron will show you how to control houses without ownership and make a minimum of $5,000 per house 3 to 4 times a month.

•

Getting Rich In Your IRA Tax Free – Ron will teach you how to use real estate to grow your IRA to a MILLION DOLLARS in less than five years without you ever personally contributing another dime.

•

Where To Find The Best Deals Even With Hot Competition – Ron will show you the best tool he’s ever used to absolutely ensure you never struggle to find deals and it only costs pennies to implement.

•

Where To Get The Money To Buy Bank-Owned Deals – Since banks require cash to purchase their properties, Ron will show you where to get the cash to buy bank-owned homes that won’t come from other banks or require credit or qualification.

•

Purchasing a Beautiful New Home for Your Family – Ron will show you how you can purchase a new home for your family in the next 45 days and never fill out an application, apply for a loan, or put up a down payment.

Come spend the evening with Ron on January 7th where he will teach you all this and many more of his secrets so you too can make 2013 your best year ever and let the American recession make you rich!

Your Name

d n a r G e L n o R MEETING AGENDA*

3:00 pm Meeting Before the Meeting with Ron LeGrand 5:00 pm Vendor & Event Setup 5:30 pm Vendor Trade Show & Networking 6:00 pm Announcements, Haves & Wants Speed Marketing Session 6:45 pm Networking Break 7:00 pm Fast Cash with Quick Turn Real Estate with Ron LeGrand 9:30 pm New Year’s Party at the Tilted Kilt Perimeter! *Please Note: Meeting agenda is subject to change.

Atlanta REIA Members can attend for FREE! Non-Members & Guests Can RSVP Online at http://RSVP.AtlantaREIA.com for $15 or Pay $20 at the Door.

s Member Gold Busines Valid Until: 1/1/2015

Member No. 1234

Bring y o cards & ur biz flyers

http://AtlantaREIA.com

Atlanta Real Estate Investors Alliance • JAN 2013

The Five Critical Steps cont. from p1 ing courses on what I know, and selling them in 1987. Then my income tripled again. Today, my company continues to market information products to real estate investors and those who want to triple their income on the internet or learn how to start and grow any business. Since that has become my chosen field and hundreds of thousands have gone through our training, it puts me in a good position to see what people do right and what they do wrong. One lesson I learned the hard way has become my credo:

The Less I Do, The More I Make No, that doesn’t mean you get paid for not working. But, it does mean you must do only the things no one else can and let other people do what they do best and get out of their way. If your life is never-ending minutia and every day goes by with no activity to grow your business, it’ll never be more than a job and soon be one you’ll want to quit. The boss must stay focused on revenue and spend every day increasing it. No one else in the company cares about it more than the boss, the owner, the receiving the major benefits of a business. Most waste time the same way, dayin and day-out and not one productive thing gets done.

2. P rescreen Prospects – There’s a big difference between prospects and suspects. Until you receive money for a product or service you have a prospect, not a customer. Until a prospect shows serious interest and is predisposed to do business with you because they know what you can do for them, you have a suspect. Your objective is to get suspects to prospects to customers ASAP cost effectively. That means 20% of the budget should be spent on getting suspects and 80% on converting to customers, the exact opposite that most businesses do. Usually 80%-95% of any suspect pool will never buy so don’t spend time trying to make chicken salad out of chicken manure.

HERE’S THE FIVE STEPS

3. Construct and Present Offers – With no offer, there is no sale. In real estate, it’s the offer to purchase. In a restaurant, it’s the menu and a waiter upselling. Online, it’s the sales letter. In retail, it’s the inventory proudly displayed or on sale. In all businesses, there better be an offer and the owner must learn to present it in the form the consumer wants to receive it. That usually means multiple media. A business with only one way to get customers is a business on its way out. One is a bad number in business.

1. Locate Prospects – Without them there is no business and this is where

4. Follow-Up – 82% of the revenue in most businesses comes from the

These are five steps to any business, regardless of its product or service. I buy and sell real estate, own a restaurant, have several online businesses, develop real estate, own an information marketing company, a consulting business, speak at events and a few other odds and ends. These five steps apply to all of them. FYI, I don’t have to be present for any of these businesses to operate and, in fact, I’m not present much.

second to the seventh contact with a prospect. No doesn’t mean no. It only means see me later when time and circumstance change my mind. That means a business that doesn’t follow up with a sequential campaign to capture customers will lose up to 82% of its potential revenue. Ask yourself, when’s the last time a business, any business, followed up with you? The key is to work hard converting prospects and a little on suspects, but neither can be done without a database of both. I’m appalled at how few businesses even keep a list of their customers, which is their largest and most valuable asset. Have you seen a restaurant lately even ask your name, much less do any work to capture your contact info? I can assure you, mine does. You ain’t getting out the door until we give you a shameless bribe to get on our newsletter list.

many owners fail. They’re great at doing the thing they sell, but suck at marketing. I’d rather be great at marketing and suck at the thing I sell. It can and should be hired out anyway, not done by you. I’m a lousy cook, so it’s a good thing I’m not my own chef. I’m great at buying houses, but not one thing I do can’t be done by someone else. I love internet marketing, but the day you find me building my own website you have my permission to shoot me. My time is spent getting business until I replace myself, then I watch my replacements. Focus on revenue, not cost control.

5. Close Quickly – That means get the money. I’m shocked at how many businesses get the bride right to the altar and never ask for a “call to action.” You must ask for money, fully expect to receive it and not quit until you do. There’s no shame in swapping products and services for money. It’s how businesses survive, and the better you get at it the faster you’ll triple your income. Let the staff handle the minutia while you focus on closing sales and training others to do the same, until you’re not needed anymore. Let’s recap! If you want to have a successful business and triple your income, you must: • Put yourself in a position to do so in a business where it can happen. • Second, build a marketing system to attract suspects, convert to prospects and then to buyers. • Third, repeat, repeat, repeat It’s not rocket science: It’s the Chunka Theory – the chunka comin in must be larger than the chunka going out.

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Atlanta Real Estate Investors Alliance • JAN 2013

The Quick Books Quickie

Answers to Your REI QuickBooks Questions

Q: I need to segment my balance sheet AND income statement into three departments (classes). Which version of QuickBooks can provide me with this capability? A: The lowest edition you can use to have classes on both the balance sheet and the income statement is the QuickBooks Premier. Q: If I change the reporting basis in the Reports & Graphs preferences from Cash to Accrual what reports will this change? A: When you change your reporting basis the main area that will change is the Balance Sheet. On a Cash basis it will not show the Accounts Receivable or the Accounts Payable; on an Accrual basis these two accounts do show up. While you can modify reports back and forth between Cash and Accrual any reports you run for your CPA or for any loan request or other reason you are providing financial reports you should always run them the same basis that you file your tax returns. This way your balance sheet at 12/31 of any given year should match those tax returns you are providing. Q: Why do I need to set up “Items” in QuickBooks? A: Your “Items List” is what drives the ability to easily create invoices. If you have rental properties you can use the invoices to track how much a tenant owes you at any given time. It also allows you to see when you receive those payments and if they are on time accord-

• AtlantaREIA.com Website, Blog and Member Only Area • Affordable, High Quality Educational Workshops & Seminars • Fun, Frequent Networking Opportunities

By Karen Bershad, The Small Business Advisor t is the goal of this column to answer questions about QuickBooks and how it is used in the REI arena. Know how to record transactions in the proper way and have your set of books in good shape when it comes time for taxes. It is our intention to do this by you the members submitting questions to Karen@smallbusinessadvisor.biz, and getting answers here in this column.

Atlanta REIA Member Benefits

• Weekly Special Interest Groups Meet Around Town

ing to you rental agreement. If the tenant is paying passed the due date, then you have an indicator to produce a “late fee” invoice and mail it to the tenant. While you won’t mail the monthly rent due invoice, you certainly will want to mail the late fee invoice. Q: It takes me all day to reconcile my bank account. I thought it was supposed to be easy in QuickBooks. Every rent check I receive shows up as a separate deposit in my check register, but when I go to the bank I deposit several checks at a time in one deposit. Why doesn’t it show up the same in my register as on my bank statement. A: If you did not turn on the “Undeposited Funds” feature in preferences then QuickBooks will put each received payment directly to the bank. You want the “Undeposited Funds” feature on so you can “collect” you received payments together as one deposit duplicating what you actually take to the bank.. Comment on this article online at http://atlantareia.com/?p=18857

• Lunch & Learn Subgroup Meetings • Wine & Dine Subgroup Dinner Meetings • Atlanta REIA Main Monthly Meeting & Vendor Tradeshow • Learn From Home on Our Monthly Webcast Series • Members Can Watch Webcast Replays 24/7/365 on AtlantaREIA.com • Atlanta REIA Subchapter Meetings • Community Outreach Programs • Haves & Wants Speed Marketing Session and Weekly Meeting • Monthly Atlanta REIA “The Profit” Interactive eNewsletter • Weekly Atlanta REIA Email Announcements, Articles & News • Volunteer Opportunities • Member Discounts on Workshops • Member Discounts from Local & National Vendors • And much, much more!

Atlanta REIA Member Discounts

• Lowe’s – Save up to 7% to22%

• Sherwin Williams Paint – Save 30% to 40% • Sherwin William Flooring – Save on Carpet, Vinyl, Delivery and Installation • Sears Commercial – Save 4%-15% on all Appliances

Karen Bershad

• Nu-Set – Save on Locksets, door hardware, security & lock boxes

(770) 356-1234 Karen@SmallBusinessAdvisor.biz

• Build-A-Sign – Save 15% on Signs, Banners, and Magnetics and other products and get Free Delivery on all orders

www.SmallBusinessAdvisor.biz Karen Bershad is “The Small Business Advisor”. Most small business owners have a challenge handling all the different areas of running a business. The accounting can be a challenge, particularly if the software seems overwhelming. The Small Business Advisor is what you may need to get you to the next level of your business. We work at your office or provide off site assistance in getting things under control by providing a wide variety of services that are specifically for the small business.

• And much, much more!

Join Atlanta REIA Today! http://AtlantaREIA.com/Membership Become a Member of Atlanta REIA for as little as $100/year. Businesses can join for as little as $150/year. See our Membership Application in this issue of The Profit or visit...

http://AtlantaREIA.com/Membership

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Atlanta Real Estate Investors Alliance • JAN 2013

How To Be A Real Estate Investor

Atlanta Real Estate Market Has Hit Bottom! By Russ Hiner

sn’t that a great headline! Wouldn’t it be great to have hit the real estate bottom in Atlanta?

Okay, you’re determined, but you don’t have $200,000 stuffed in your mattress, and you’re nervous about investing. Everyone is, but the good news is that the market is looking better and better— and there are experts like me in the field with good information.

We all know that the real estate market in any city is micro economic. This means that you can pick an area that is white hot… and within one mile of that location you will find an area that is dead like week old fish. You need to know where the white hot areas end and the dead fish areas begin: these are micro-niches. You need to find the micro-niches—YOU NEED INFORMATION, information that I can help you find.

But you need to move quickly. In the metro Atlanta area, investors are buying properties at a rate of 60% of the total sales. This is a buyer’s market. You need to get in the game NOW! If you want the keys to your dreams and to your wealth machine, keep reading. Right now, you may not even know what you need to know! Below I’ve provided the kind of information that you

If you are an investor who is determined to buy real estate immediately, then this information is for YOU.

will need to collect and, as your mentor, I will teach you how to find it and how to use it to your benefit. I know what you need to know: You need to know that the fourth quarter figures are in: the Atlanta market is looking much better than it did earlier this year. You need to know that the phantom inventory is decreasing, and that the bank owned sales are keeping pace with the foreclosure rate. If you are a land-owner, the bank is on your side. You need to know that the banks are keeping the prices artificially higher and that the absorption rate of houses on the market is increasing.

County

Hot area

<$110,000 Wholesale Possibilities/ Buy/Fix/Rent (Any Area)

$150,000-$250,000 2nd Home Step-Up Possibilities (Any Area)

Above $300,000 Middle Market Possibilities

Atlanta, North

Sandy Springs, Roswell

Yes

Atlanta, South Cobb, East

Marietta

Cobb, West

Yes

**Clayton County DeKalb, East

Fulton, South

Gwinnett, North

City of Norcross Peachtree corners

For each house sold there are 10 on the market. Competition is fierce.

**See Notes Below

Yes

No—too much inventory and investors. Yes

Yes

Yes for buy/fix/ sell

Yes

Tucker Briarcliff City of Decatur DeKalb, West North Druid Hills Grant Park Fulton, North Ormewood park

Notes

Yes

For each house sold there are 10 on the market. Competition is fierce. Plenty of phantom inventory but being absorbed at a consistent rate.

** Cash flow for rentals. Strong investor market. No consistent appreciation for the foreseeable future. Important Note: You will find exceptions to the statements above in any market because there are micro markets in each of these areas. Beware there are very few areas in Atlanta which will see any appreciation quickly or in the next 12 to 18 months. This chart is designed so that you will spend money and time profitably acquiring deals.

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Atlanta Real Estate Investors Alliance • JAN 2013

You need to know that right now, the white hot areas of the city are the City of Decatur, Inman Park, Grant Park, Sandy Springs, the City of Marietta, Vinings, and the City of Roswell. And you need to know that the dead fish areas are those over $150,000 in Clayton County, the Bluff, the Fourth Ward, and West Cobb. You need to know the following information: if you want to make one Deal a month then follow the chart on the previous page. I know what you need to know. When meet with my real estate group on the first Tuesday of each month, I know that I am giving you valuable information. I have become increasing successful in real estate over the past 30 years. I am qualified to coach and mentor you. I know this because I have mentored many people who are now extremely successful. I want you to be one of these people. You need to BUY NOW! What are your next action steps? Get into the game! Join me and other successful investors at my Creative Deal Structuring Subgroup. Let me coach you to learn the market and find your niche!

I can’t wait to meet you at the White Hall Grill on the first Wednesday of every month at 6:30 pm. Please contact me for affordable, 1 hour on-line coaching sessions twice a month at low cost of $49 per month. Comment on this article online at http://atlantareia.com/?p=18839

Russ Hiner 404-660-4289 Russ@RHiner.com www.RHiner.com www.Facebook.com/1RHiner Russ has been investing in real estate in Atlanta Georgia since 1981. His company currently controls apartment buildings and singlefamily properties in Georgia and other states. His focus is on raising private capital through Hedge Equity, LLC. Russ invests everyday. His knowledge and experience is current in the market. He is capitalizing on the needs, wants, and desires of the customer. He has a deep level of experience in building relationships with vendors, investors, tenants, sellers, and qualified buyers. He has the knowledge to negotiate contracts, manage rental properties, and make his co-investors wealthy. He enjoys taking properties which are virtually destroyed, renovating them, and creating a better community.

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The Landlord’s Lunchbox

Structuring Your Business for Success! By Chris Littleton

ne of the first things to consider when you are starting your real estate business is how you are going structure your business or businesses. I probably would say in most cases the word businesses! Over the years of dealing with my business, working with clients and the people whom I do business with, I have learned a great deal regarding the ways of structuring entities for success. I have seen the affect of poor planning which include increased risk, personal liability, and a servicing and filing nightmare at great cost. The one thing I would like to make clear is that this is business advice and not legal or tax advice. When you start your business you should consult with a CPA, attorney and others investors or business owners that operate the type of business you are setting up. A good mentor can be worth their weight in gold as you start real estate business and structure it for success.

The five basic entities for business are: Sole Proprietorship, General Partnership, Limited Partnership, Corporation and Limited Liability Company. Choosing the entity usually depends on issues and concerns with people, place and things. The People Factor plays into ownership and how you limit risk, liabilities, hold personal guaranty for the business operations to the business owner(s) and or partner(s) for the business. Also how you bring people into and out of the business as owners vs. investor. These are all major consideration when choose the entity for your business. The Place Factor for Real Estate investments is the property ownership and is commonly considered a holding company. The holding company should have no employees, products or services involved with it, just real property ownership. In highest and best use cases hold companies are just

a pass thru entity for the income that the property(s) produce to the owner(s) of the holding company. The Things Factor for entities are employees, providing services and products such as Management, Rehabbing, Financing and more. It is important to keep the liabilities of your employees’ services and products separate from your holding company liabilities. My choice for success for holding companies are Limited Liability Companies. The Limited Liability Company (LLC) is a business entity organized under state law and regulations that offers limited liability like a corporation along with the possibility of “pass-through” taxation, unless it elects corporate treatment for federal tax purposes. Therefore, an LLC is a cross between a partnership and a corporation. continued on p28

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Atlanta Real Estate Investors Alliance • JAN 2013

Creative Financing is King

Different Things You Can Use to Buy Real Estate Other Than Cash By Larry Harbolt

his month I want to give you an example of different ways any investor can use notes to buy houses instead of using CASH. Once upon a time I knew an investor who was trying to structure a deal with a seller who wanted the money from the sale of his property to buy a motor-home so he and his wife could travel the country. The investor asked the seller if he was able to find a motor-home of the sellers liking, would the seller use the book value of the motor-home in exchange for the down payment on the property the investor was trying to buy from the seller. This was regardless of what the investor had to pay for the motor home he would be trading to the seller for his property. The seller told the investor exactly what he wanted a motor-home to have, that he would accept. Once the investor knew what the sellers wanted, he then immediately set out to find a motor-home he could use as catalyst to complete the transaction to buy the sellers house. After a few days of searching the investor found a motor-home exactly like what the seller of the house wanted. The investor approached the owner of the motorhome and asked if he would be interested in selling the motor-home. The owner of the motor-home was eager to sell because he and his wife could no longer travel as they had once done because of their age and some health issues. Because of this the motor-home had been setting in the owner’s barn for over five years, not being used. The investor offered the owner of the motor-home four promissory notes the investor had taken back from sales of properties and had been collecting from his

buyers he had sold that were a few years old and each promissory note had a payer with a good payment history in exchange for the motor-home he needed to complete the other deal he was trying to do. All four of the promissory notes had a remaining balance owed almost exactly totaling the exact amount of what the owner of the motor home was asking. The owner of the motor-home gladly accepted the investors offer and exchanged the motor-home for the performing promissory notes the investor had. The investor then had the motor-home he needed as partial payment for the property the investor was trying to buy. The seller of the property the investor was buying also agreed to accept monthly payments from the investor for the balance of the purchase price of the house instead of the investor having to go and get an institutional loan for the balance of the purchase price of the property. Now, let me ask you, who was the winner in that deal? Everyone was a winner and here is why. The investor got the property he wanted without giving up cash out of his savings account or having to get institutional financing to buy the property. The investor gave up four small income streams (the promissory notes) he had. The seller of the property got what he wanted. He and his wife got a nice motor-home exactly like they wanted and a retirement income every month from the investor for the next 30 years. The seller of the motor-home got what he wanted, a monthly income from a motor-home he and his wife could no longer use. That motor-home was costing the owner money every year for insur-

ance, licenses and maintenance costs even though they weren’t using it and hadn’t used it for over 5 years. The seller of the motor-home was very happy receiving the payments from the promissory notes the investor traded him for the motor-home. At least he was getting some of his money back from the no longer used motor-home every month he and his wife could surely use. Everyone was a winner and in that deal two different catalysts were used, the motor-home and the investor’s promissory notes to make that deal happen. Remember, every deal you will ever do will always have a catalyst involved that makes the deal happen and that catalyst doesn’t have to be cash! Always find out what the sellers REALLY need and use that item as the catalyst to make the deal happen! Comment on this article online at http://atlantareia.com/?p=18833

Larry Harbolt 727-420-4810 LarryHarbolt@Gmail.com www.LarryHarbolt.com www.Facebook.com/Larry.Harbolt.7 www.Twitter.com/LarryHarbolt Larry Harbolt is the nation’s leading creative Seller Financing expert as well as a popular national real estate speaker and teacher whose timetested strategies and nuts and bolts teaching style has helped thousands of aspiring real estate entrepreneurs realize their financial dreams with little or no money and without the need for credit. Larry has been successful creatively buying and selling real estate for over 30 years and has written numerous popular articles and real estate courses. Larry also has been running a meetup group in St Petersburg, FL for real estate investors for over 13 years.

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Atlanta Real Estate Investors Alliance • JAN 2013

Market Matters: Making Statistics Make Sense

Real Estate Has A Sense of Humor By Deborah Harris

ith over 30 years of Atlanta real Estate under my belt, one begins to think you’ve heard or seen it all. Not true! As an analytical person that usually utilizes this column to the explain Atlanta market statistics, I decided the end of the year needed a little levity. Those of you that know me, would state that I have a healthy sense of humor anyway. Therefore, this column is devoted to the more humorous true stories I have experienced in real estate.

Auctions and Land: 1. In 1983, I went to Mendenhall Auction School in North Carolina, exactly 20 years after my Dad had graduated from the same auction school. He fronted the money for the school and the expenses for me to attend, on the condition, that we deduct it from future auction commissions. Well, in the eighties, auction and real estate were mostly male occupations. Therefore, 90% of a class of 100 was men. The first day of school, the schoolmaster, Mr. Mendenhall, announced that, “We have a very special student here. She is the second generation to attend auction school, and, her father is the President of the National Auctioneers Association.” With that, everyone wanted to meet me, and, a group invited me to play poker with them. Well, I inherited my math and card playing abilities from Dad, and, I am sure this group had no idea who they were tangling with. The following Monday after my graduation from school, I was in my Dad’s office, when I started counting of hundreds of dollars to him. “Here’s the tuition money. Here’s the expense money. And, I am keeping the rest”, I exclaimed. “Where did you get all that money, girl?” my father questioned. “I won

it playing poker with the rednecks that wanted to learn to sell cows and tobacco,” I proudly said. With that, he slammed his fist on his desk and stated, “Way to go, Girl!” 2. For those that know me, it is probably hard to believe I was ever shy, nervous, or insecure. But, as a youngster, trying to tread in a man’s world, I was. My first really big presentation (without Dad) was to a boardroom of men at Proctor and Gamble. You could hear the trembling in my voice as I spoke. Harris Auction Service was up against Hudson and Marshall, and JL Todd, two of the country’s biggest auction companies at the time. I was shocked when I received the call that we got the deal. During the course of setting up the auction, I got to know some of those very board members pretty well. And, after the auction was over and we had done beyond expectations, I asked one of them, “What put us over the edge, to get this job?” He said. Remember what you wore that day?” I said, “Navy suit, white blouse.” He said, “Your written hand outs were excellent, but none of us heard a word you said, because your center button

on your blouse had come undone, and all we saw was the white lace bra.” I should have worn that blouse for every presentation (in the younger days). Just kidding! Oh, well, that accident gave me the opportunity to prove what a great job our company did and success got us many more auctions. 3. Land auctions are usually done in counties that did not require paving and they did 99 tracts (less than 100) to avoid HUD development requirements. On one such 300+ acre auction in Moultrie, GA, we had advertised all over newspaper and radio, “Register to Win a Free Truck.” We had the local church to bring food to sell and expected 300-400 in attendance. With over 1000 registered bidders, we had a lively auction, ran out of food, and, needless to say, the portable toilets were above capacity. Well, one of the owners, was an ex college football jock, that had gained a substantial amount of weight, and, unfortunately had the gout in one foot. At the end of the auction, he proceeded to the porta-potty on his crutches. As an onlooker, I watched this painful movement. Next thing I see, the toilet tilts on a 20 degree angle, then rights itself back upright. The very pale and shocked man exits to exclaim (with one crutch), “It was slick in there, and hard to hop to turn around, and for a moment, I thought I was going to drown in all my ex-wives crap!” 4. After that successful land auction, we re-evaluated our formula for land in parcels into what I called “Busting up a Tract of Land”. The same advertising blast, but the public had a week to pick out their tract at a predetermined price, OR, compete with a few thousand other bidders for the same

continued on p24 http://AtlantaREIA.com

Atlanta Real Estate Investors Alliance • JAN 2013

From Contract to Closing

Note Buyers By Michael Vazquez

y now everyone has heard that banks have ceased foreclosures for the holidays. This has made finding inventory much more difficult for a few investors that depend on just those foreclosures as leads. In the last few years I have began working with non-performing note buyers or NPN buyers. These buyers buy notes from the same banks that you are expecting foreclosures from. What do many note buyers have in common? They were once real estate investors that now prefer to buy and sale the notes in order to avoid house renovations, tenants, etc. They are also looking to liquidate those properties so they can purchase another bundle of notes. When note buyers acquire in bulk they end up with plenty of properties at pennies on the dollar. For example, they might purchase a $100,000 note from a bank for $40,000. They know that the current property owner of the property is not making payments. Because they now carry the mortgage/note they can now foreclose on the property and take procession of the property. Again, these note buyers usually do not want to bother with holding or repairing these properties. At this stage is where you, the real estate investor, would like to step in and relieve this note buyer of this burden. Of course, you will not be purchasing this deal at $40,000 but maybe for $45,000-$50,000 if the property needed $20,000-$25,000 in repairs. Given that the property is still worth $100K this purchase would be at 70% LTV including

repairs. This would be a deal any serious investor would consider. When purchasing properties from a note buyer you would be in a better position if you were capable of buying more than one at a time. You may not be able to acquire a bulk as they did but three plus would be ideal. Keep in mind that they are looking to liquidate tons of properties at a time. They would prefer not to close each deal individually. They would rather sell off in smaller bunches at a time to make their lives easier. If you purchase three or more at a time and can close quickly you may be able to negotiate a better deal. Also, keep in mind that many bulk note buyer do not see the properties that they acquire. This means that because you are local and have the time to go see the property you may see something that you can use as a negotiating tool. The note buyer realizes that they are not going to profit on every property but will net a profit when everything is liquidated. Therefore, do your due diligence, run your numbers and submit the offer that fits your exit strategy. If the note buyer is local he/she will verify your claims in person but if they are not local you may want to send them a few pictures of items you are referring to in negotiating a more favorable price. This is only one scenario that can play out when working with note buyers but as you can see they can be another great source. In addition, these note buyers can continue

to buy even when foreclosures are seized because they are taking over the current notes and not having to wait for a foreclosure. As always, this is possible because there is a win, win, win situation. Again, when it’s time to close and fund make sure you do and the deals will keep coming. Comment on this article online at http://atlantareia.com/?p=18836

Michael Vazquez 678-951-9222 MichaelP.Vazquez@Gmail.com Michael Vazquez has been offering properties to real estate investors significantly below market value since 2006 in both Texas and Georgia. Michael is always looking to for more investors to work with.

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Atlanta Real Estate Investors Alliance • JAN 2013

Marketing Magic Tricks

Pre-Screening Sellers For Your Real Estate Investing Business – Part 1 By Kathy Kennebrook, The Marketing Magic Lady

strongly believe that pre-screening sellers is one of the most important tasks you will undertake in your real estate investing business. The more quickly you learn to pre-screen prospects, the more money you will make in your Real Estate Investing business. This article is focused on teaching you how to tell a good deal from a time waster in 30 seconds or less. If you don’t learn to pre-screen prospects quickly and efficiently, you will get burned out of the real estate investing business by working with sellers who won’t sell you their house, no matter what you say. Your job as a real estate investor is to very quickly determine the difference between a prospect and a “suspect”, meaning someone who needs to sell versus someone who just wants to sell their property. People who just want to sell will either reject you immediately (don’t take this to heart, it just helps you move on quicker) or they will jerk your chain with a bunch of excuses as to why they won’t sell to you. Don’t waste your time with these folks!! I know from first hand experience that motivated sellers will make themselves known to you quickly and they are a whole lot more fun to work with. Their attitude is more like “Please take my house off my hands….. now!” They are usually pretty easy to identify once you ask the right questions. This is why I suggest using a specific letter when you are mailing to these sellers and a specific telephone script when speaking to motivated and non-motivated sellers. The answers to the questions you need to ask will very quickly identify for you whether

you are working with a motivated seller or a time waster. And if you did your direct mail campaigns correctly in the first place, you usually have most of the information from these sellers already in order to make that determination. So that just removes one more obstacle for you. When speaking with sellers, don’t worry too much about being perfect. In fact, if you are not “perfect” or totally professional, you are probably more likely to build a better rapport with a motivated seller. They are much less likely to feel like they are being taken advantage of, even when they aren’t. So relax and enjoy your conversations with these motivated sellers. When you are working with a truly motivated seller, they will hang on your every word and do pretty much whatever you need them to do in order to get the deal done. They will be glad you came into their lives in order to relieve them of the stress the property is causing them and they are counting on you to help them out of their current situation. This is your job as a real estate investor. Remember, usually you will be contacting a seller who has already contacted you in another way, such as responding to a direct mail piece you may have sent them or some type of advertising you have implemented. If the seller contacts you first, you are much more likely to make a better deal. As a Real Estate Investor, when you do speak to a motivated seller, make sure to take plenty of good notes so you don’t have to try to remember what they told you later. It will be important for you to

have all the facts when you get to the point of actually structuring the deal. In my next article I will discuss the basics to determining whether or not a seller is truly motivated. In the meantime, feel free to visit my website at www.marketingmagiclady.com to check out all of the products I have available for finding and following up with motivated sellers. I also have a wonderful product to help you called “Kathy Kennebrook’s Magic Seller Conversations” which is a group of recorded conversations with both motivated and non-motivated sellers to help you learn to quickly pre-screen sellers. I actually analyze each deal for you to show you the specific reasons why I did or didn’t buy the property. This is an incredible tool for the Real Estate Investor just starting out or the seasoned investor looking for a really effective training tool for your business. Comment on this article online at http://atlantareia.com/?p=18826

Kathy Kennebrook 941-792-5390 KPaddler@ATT.net www.MarketingMagicLady.com www.Facebook.com/Kathy.Kennebrook Kathy Kennebrook is a speaker, author and has been actively investing in real estate since 1999, Kathy currently resides in Bradenton, FL and is known as the Marketing Magic Lady because she is the country’s leading real estate marketing expert on finding motivated sellers using direct mail.

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Atlanta Real Estate Investors Alliance • JAN 2013

FORECLOSURES GONE WILD

WARNING! Short Sale Lender Has Mandated Deed Restrictions On Deed For Closing! By Kimberlee Frank

he Short Sale lenders are getting crazier and crazier. That is why you need to stay current with the short sale changes. Approximately 3 years ago, Bank of America was the first short sale lender to start requesting that the new buyer of the property consent to not resell the property for less than 30 days. This statement was included in their short sale approval letter. This statement alone caused a lot of challenges to investors who were still looking to close back to back on transactions. A few short sale lenders thereafter, such as GMAC and Wells Fargo, started adding 60 to 90 day resale clauses on their Arm’s Length Affidavits, but not their short sale approval letters. Recently, I was in the process of purchasing a property where I needed to get an extension on the short sale approval letter. The reason was that the Homeowner Association advised us that, pursuant to their by-laws, their 35% ownership of investment properties had been reached and only homeowner occupants can purchase the property. The servicer for the lender was Seterus. I received a brand new approval letter for the same exact buyer as before, but with a few different statements: 1. T he purchaser cannot resell the property within 30 days of the short sale settlement date. The purchaser cannot resell the property for greater than 120 percent of the short sale price within 90

days of the short sale settlement date. 2. T he deed conveying the property to the purchaser should be amended, in compliance with applicable state law, to include the following provision: “Grantee herein is prohibited from conveying captioned property for any sales price for a period of 30 days from the date of this deed. After this 30 day period, Grantee is further prohibited from conveying the property for a sales price greater than $88,800.00 until 90 days from the date of this deed. These restrictions shall run with the land are not personal to the Grantee.” WOW! Now the short sale lenders are really placing a deed restriction on the property, as it is being included with the recorded deed because previously the purchaser or seller would have to sign a document either a short sale approval letter and/or arm’s length affidavit acknowledging this agreement. This allowed many investors to do two closings using two different title companies and literally ignoring the deed restriction thinking that no one would know about the deed restriction since nothing was filed in public records. Well, the game is over ladies and gents, if you played that game, which I never recommended. Some of the lenders are now requiring it on the deed which also controls your profit. This particular loan was an FHA loan.

Am I saying that all lenders are going to follow suit with these new restrictions? I would assume a few will jump on board, such as Bank of America, Wells Fargo and GMAC. You will need to be sure on your short sale deals that you know how long you will have to hold the property and make sure you have enough profit there to hold it. Please take the time to read every lender document thoroughly and if there is wording that you would like removed, ask them to remove it. I can’t guarantee you that they will, as they did not do so on my transaction, but you won’t know if you don’t ask. What this really means is that you will need to buy at the right price and hold for the right number of days in order to profit BIG in the short sale arena! However, there are ways around getting your buyer in at the time of closing, which I will share in my next article. Until then… read your paperwork! Comment on this article online at http://atlantareia.com/?p=18829

Kimberlee Frank 407-888-3255 Kimberlee@ForeclosuresGoneWild.com www.ForeclosuresGoneWild.com www.Facebook.com/ForeclosuresGoneWild www.Linkedin.com/in/KimberleeFrank www.Twitter.com/KimberleeFrank

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Kimberlee Frank is a Master Negotiator who has closed over 600 deals since 1998. She is a Mentor, Trainer, Author and Real Estate Broker teaching Investors and Realtors how to creatively purchase and sell short sales with her Step-by-Step System. She has helped Investors and Realtors earn hundreds of thousands of dollars.

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Atlanta Real Estate Investors Alliance • JAN 2013

Pearls of Wisdom

The Best Deals To Do in Real Estate in 2013 & Beyond! – Part 1 By Tony Pearl

s I write this, it’s coming up on the end of 2012. The real estate market is still crazy, and there are a lot of questions in people’s heads as to what the market is going to do. What else is new?  Ever since I first got in to real estate investing, back in 1996 (wow!), the market has ALWAYS been changing. So that’s NO excuse not to get involved & do some deals. The KEY is to just recognize WHAT the best strategies are to use at the moment, then learn all you can about them, and - most important of all – ACT on what you learn! Winners with tiger blood running through their veins will tell you that CHANGE (and chaos!) just creates more opportunity, and the real estate market right now is certainly no exception. It used to be that the hot things in real estate were: Wholesaling, Short Sales, Rehabbing, and of course, the related “Get the Deed” system, where you take over existing houses ‘Subject To’ the existing mortgage. While those methods still certainly work, they’ve definitely changed.

Then you have your Rehab deals. I don’t know about you, but I’d rather dance “Gangham Style” for 5 hours straight than do another rehab. Dealing with contractors, retail buyers, and BANKS (not to mention title companies, appraisers, etc.) almost made me quit real estate completely a few years ago. I’m not kidding. Of course, YOU might like to do rehabs. If so, more power to you. And then there are Short Sales. Lord knows I’ve done more than my fair share. Got pretty good at ‘em, too! Believe me, there was nothing like sticking it to the banks by negotiating a super discount on a property, then getting a huge, fat check when the deal closed by selling it to a buyer! But while that scenario is still possible, our so-called leadership in Washington, D.C. has changed a crapload of laws that pretty much make it a crime in some states to help people in certain situations. I used to live in Maryland, and that was one of the first to screw us investors over, all because of a handful of idiots that messed it all up for us. There’s a bunch of other things that make doing short sales extremely challenging in today’s financial environment. And there’s a LOT of hoops to jump through.

deals should we focus on? (Again, if those are the types of deals you’re doing now & they’re working for you, then stop reading now & keep doing what you’re doing. Nothing to see here, folks!) Let me get right to it. I believe that the best types of deals to focus on for the foreseeable future is: WHOLESALING PRETTY HOUSES! That’s right. But what the heck does that mean, and HOW do you wholesale a PRETTY House, right? So let me explain… Wholesaling pretty houses is very similar to our ol’ fashioned, tried & true method of wholesaling ugly houses, with a few noticeable differences. (See table at the bottom of the page.) Here’s what it means to wholesale a pretty house: Get a house under contract. Find a tenant-buyer who will live in the house. Get your money from the tenant-buyer & assign the deal. Done. Let’s break that down. You find a motivated seller, typically one who doesn’t have much equity, or is even underwater. If you’re familiar with ‘Subject To,’ or ‘Get The Deed’ deals, this should sound very familiar. But here’s where it gets a little bit different…

One example of how those changes have So the big question remains: What happened is: Who would want to get the do we do NOW to make money in real deed on a property that’s declining in estate? If all those other kinds of deals value – or is underwater in value (owed basically suck these days, what type of more than the house is worth)? Not me, continued on p26 that’s for sure! I doubt Wholesaling PRETTY Houses vs. UGLY Houses: your would, either. But wait a minute! There IS Wholesaling PRETTY Houses: Wholesaling UGLY Houses: a way to still help people Buyer: Investor (Who Rehabs House) in those situations – and Buyer: Tenant Buyer (Who Will Live in House) still make money! Keep NO Repairs Needed! Repairs Needed. Your Buyer Will Do These. reading… Wholesaling is still a good business model. But how many junkers can you deal with? And how many are there in your area? Who’s still buying them right now?

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Small Market. You’re Limited.

Medium-Sized Checks. Easy to do.

LOTS of Sellers Now. Relatively Easy to Negotiate.

Not Many Sellers. Must Negotiate Low Price.

HUGE Field of Potential Buyers!

Very Limited Buying Pool. Investors w/ Cash.

And the list goes on & on. Believe me, those are just a few of the differences.

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Atlanta Real Estate Investors Alliance • JAN 2013

There’s an App for That

New Habits for a New Year By Don DeRosa

“Time and health are two precious assets that we don’t recognize and appreciate until they have been depleted.” ~ Denis Waitley

ow. What a year! The turkey leftovers are gone. There are just a few pine needles left in the carpet. And your Aunt Miriam, thank goodness, has gone home to Indiana and has taken the fruitcake with her. Now it’s time to reflect. I don’t know about you, but I reached many of my goals in 2012, and that feels great! Still, I know 2013 will bring plenty more challenges and opportunities. It would be boring, wouldn’t it, if we were completely finished with everything by the end of the year. I mean, what would we do then? So we carry our unfinished business into the following year. That’s what New Year’s resolutions are for, right? “For every single day of 2013. I’m going to eat just 700 calories and jog six miles!” For many of us, new year’s resolutions are made to be broken. In fact, for some of us, the best way to make sure something doesn’t get done is to make a new year’s resolution to do it. It’s the kiss of death! Thankfully, though, we live in the digital age where help is as close as your iPad. So this month, I’ve got two apps to recommend. Before I tell you about them, though, this is a great time for a quick review about the importance of setting – and writing down – your goals. Yes. I said write down your goals. Think you don’t need to write them down? Let’s test that. What if I offer you a million dollars to drive to San Diego, California, but

with a catch: I’m going to drop you off in the middle of nowhere, on a road without any signs pointing the way. You have three days get to San Diego, but you are not allowed to get out of your car or ask for directions. And you aren’t allowed to use a map. What do you think? Could you do it? At the very least, it’s going to be really, really difficult to do. You’re probably going to spend the next three hours just trying to figure out where the heck you are. But let’s change that offer: This time I offer you $1,000,000 to drive to San Diego, but I give you a map and point you in the right direction. It would be a very different offer, don’t you think? I write down goals every day. It’s a key part of my success both in real estate and in my personal life. I teach my students that goals should be “SMART”: Specific, Measurable, Achievable, Realistic, and Trackable, But if all you do is write down your goals and stuff them in a drawer, they’re not going to do you much good. Which brings me to my first mobile app for the year: “Make It Happen!” by Cobalt Techno for iPad and iPhone. This clever little program is right up my alley. The software is easy to use, and it allows me to plan overall goals, define milestones, and track my progress, too. It even lets me set up monetary goals with specific dollar amounts, so I can save for a vacation or build up private financing for a large real estate deal. With my goals clearly written, updated and always close at hand,

I can just about ensure success for 2013. But I told you I had two app recommendations for January, not just one. I’m also recommending MyFitnessPal. MyFitnessPal tracks exercise, diet, and much more. And because it’s Internet based, you don’t’ have to have an iPad, iPod or iPhone to use it. This recommendation may seem frivolous, but success in every aspect of your life – including your business -- depends on maintaining your physical health. Besides, we both know that even though Aunt Miriam took the fruitcake home, she left behind two dozen of her famous double-dark-chocolate-butterscotchand-cookie-dough-pecan brownies. And they’re calling to me. Comment on this article online at http://atlantareia.com/?p=18812

Don DeRosa info@DonDeRosa.com www.MobileRealEstateRockstar.com/Atlanta-REIA www.Facebook.com/Don.DeRosa www.Twitter.com/DonDeRosa Don DeRosa was recognized as one of the nation’s top 21 real estate investors in the New York Times bestseller The Millionaire Real Estate Investor. Don, who is a full-time investor, trainer, and mentor, is the first to offer his complete investing system on a mobile platform. Don teaches investors how to Make More and Work Less by being more efficient, productive and competitive, leveraging mobile technology and apps on the iPad, iPhone, Android and other mobile devices.

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Atlanta Real Estate Investors Alliance • JAN 2013

Proving Lender Negligence and Fraud Part 1: The Paper Trail By Bob Massey

here are two approaches you can take to determine whether or not there has been negligence or fraud in the loan process. Both paths can be equally effective in uncovering lender misconduct and providing you with leverage for negotiations with the bank. One path follows the documentation from mortgage application through foreclosure documentation, and the other approach follows the money trail. This article will examine how the documentation can lead to a damaging case against a pretender lender. Our next article will cover the money trail method. In order to prove that they have the right to foreclose on a property, it is becoming standard for lenders to be required to produce the original note on the property. The note is required before a court will allow a lender to sell a property. It must show that the lender is named with a recorded economic interest in the property. However, in many cases these original notes have been either lost in the securitization shuffle or purposefully destroyed as the note bounced around from entity to entity. The note could even have been

Photoshopped or otherwise forged to make it appear that the entity trying to foreclose has the standing to do so. Fortunately, the lenders are being called on it by the courts. Other documentation issues are found by examining the original mortgage application and what the homeowner was originally told or promised by the mortgage broker. If they were promised one kind of loan and received another, or they were sold a high risk mortgage on the basis of race, ethnicity or the neighborhood they were moving to rather than financial qualification, then there may be a case against the lender based on the Fair Housing Act or RESPA violations. The note as submitted by the lender in a foreclosure hearing may clearly be fraudulent because it was notarized after the fact with a stamp that was not even valid at the time the mortgage was taken out. Many times the note was signed by a socalled Robo Signer (someone who could not swear in court that they had personal knowledge of the documents in the original mortgage package). Likewise, assign-

ments and other affidavits presented after the initial mortgage was signed may have been to lenders who were in bankruptcy at the time the assignment was made, or companies already out of existence. The document trail is often just a sham constructed to give the impression of legitimacy for the court. With an experienced fraud investigator working on your side, you would be amazed how simple it can be to find clear cut examples of fraud. We all know about the many fraudulent activities that surround foreclosure documentation. Often these records were signed by a fictitious bank officer who was robo-signing documents for several lenders at one time and signing thousands of documents each day, none of which were read or could be attested to in terms of accuracy of the facts by that fake officer. For securitized loans the documentation trail is also usually a sham. Some examples are missing or incomplete records, not showing specific notes being placed into specific securitized trusts, or records continued on p28

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Atlanta Real Estate Investors Alliance • JAN 2013

Fast Track to Self-Directed IRA Investing

Real Estate IRA Investing Technique… Re-Stealing Properties… A Potentially Profitable Technique with a Double Edge! Jim Hitt, CEO of American IRA, LLC Real Estate IRA Investing – The Purchase A young couple found a home they wanted to purchase with their real estate IRA. The purchase price was $50,000. They borrowed $55,000 and had $800 worth of repairs. I know that $800 worth of repairs for a house purchased with 1,400 square feet, three bedrooms, and two baths through a short sale sounds absurd, but these are actual numbers from an actual deal. Real Estate IRA Investing – The Repair Bill I’ve personally never seen $800 worth of repairs in my entire life and I’ve been in this business for 40 years. I can’t even walk through the house for $800. I don’t know what it is but I’ve never done that, so that was phenomenal to me. The deal’s great but how did you get $800? They actually got a little cash back at closing since they borrowed $55,000 for a $50,000 purchase. Real Estate IRA Investing – Net Equity The market value was $90,000 at the time of closing and the loan was $55,000, so they had a net equity of $35,000. Real Estate IRA Investing – Net Monthly Income The couple borrowed $55,000, from a self directed Ira at 8% amortized for 20 years, all due in seven years. The rent on this property is $875 a month, and their monthly expenses, including their loan payment and a vacancy allowance, are $665.00.

They are netting $210 a month on this deal. That’s correct, positive cash flow with no points. Real Estate IRA Investing – Re-stealing The reason that they got this property is there was a lot of bidding going on and a lot of offers being made, but because of the marketplace everyone was trying to re-steal the property. Do you know what re-stealing is? It’s already a fabulous deal and it’s not good enough so investors place offers that are below the already great price in an effort to re-steal the property. It was on the market for $50,000 and the other investors were offering $42,000 and $43,000 in an attempt to re-steal the property. Sometimes, as an investor, you’ve got to take a step back and say I’d rather have the deal. It’s a good deal. Suck it up that you didn’t get $2,000 off or you didn’t get $5,000 off. You’re already buying it cheap – 55% Loan to Value. The young couple realized they already had a good deal and offered the asking price. As a result, the young couple walked away with the deal and the investors that were trying to re-steal the property were left empty handed. Real Estate IRA Investing – Re-stealing, the Double Edge Re-stealing can lead to some great deals in which investors can maximize their profits by placing low offers on properties that are already listed well below market value. On the other edge, as you saw in this deal, re-stealing can

also lead to lost deals. When using this technique, it is important to weigh the situation and determine whether you are willing to chance losing the deal for a lower price or whether it is time to seize the opportunity and pay the asking price. The moral is if the deal is good enough don’t let greed get in the way of PROFIT! Comment on this article online at http://atlantareia.com/?p=18822

Jim Hitt 800-750-0472 JimHitt@AmericanIRA.com www.AmericanIRA.com www.Facebook.com/AmericanIRA www.Twitter.com/IRAExpert Jim Hitt is the Chief Executive Officer of American IRA, LLC and has been committed to all aspects of investing for more than 30 years, using selfdirected IRAs for his own investments since 1982. Jim’s forte is the financing and acquisition of real estate, private offerings, mortgage lending, businesses, joint ventures, partnerships and limited liability companies using creative techniques.

Join Jim Hitt at the Creative Deal Structuring Group on January 9th at the Whitehall Tavern in Atlanta to learn how to use your IRA and the IRAs of others to purchase real estate.

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Atlanta Real Estate Investors Alliance • JAN 2013

Business by the Book

The Winners and The Losers By Erven Kimble

“Such wicked people are detestable to the Lord, but he offers his friendship to the godly.” (Pr 3:32, NLT)

s a business person, have you ever considered that honesty produces a substantial financial gain? Or, that dishonesty inherently produces huge monetary losses? I realize that everyone might not agree with this conclusion. However, the biblical evidence suggests there are many advantages to being honest and there are dire consequesces to dishonest practices in business and in life. It is clear that ethics do have a profound impact on the bottom line. An even more basic thought, indicates that our business practices dictate our relationship with God! The Book of Proverbs contrasts the financial outcome of the honest versus the economic decay of the dishonest. Let’s examine some of these profound truths.

Wealth Accumulation vs. Inevitable Losses “There is treasure in the house of the godly, but the earnings of the wicked bring trouble.” (Pr 15:6, NLT) To be sure, personal integrity, honest practices and high moral standards are associated with financial wellbeing. The household of the honorable person contains great treasure ...ethics because it is esdo have a tablished on wisdom and a proper profound impact on the response to God. Even though a bottom line... parent may not be affluent or financially wealthy, they can leave their children a spiritual heritage of great value. The treasures that exist in the house of the virtuous individual consists of things like

happiness, harmony, friendship, kindness, and financial security. In contrast, the unscrupulous man or woman that acquired assets dishonestly or illegally brings trouble and financial ruin upon himself and his family suffers as well. The wicked never gain enough to be satisfied, and eventually lose what they have because of their dishonest ways. “Wealth gained by dishonesty will be diminished, But he who gathers by labor will increase.” (Pr 13:11, NKJV) The simple truth is wealth gained by dishonest means is not sustainable. Acquisitions using such means will eventually produce long-term consequences of cheating and illegal activities. People who lack integrity may gain short term financial gain merely to postpone their inevitable ruin. The day will come when their cheating catches up with them. Cheating doesn’t work! The wealth of the dishonest is reduced. Conversely, diligence and hard work produces lasting fiscal return. “Wealth that comes from telling lies vanishes like a mist and leads to death.” (Pr 21:6, NCV) The financial gain that is the result of deception is short lived and ultimately destructive. Some prosperity is good and some is bad, but the important thing is how the assets are obtained. Deceitful speech produces a negative return. God desires that riches be accumulated in an honest way. If the getting of riches is by lying, deception and robbery, God will see to it that

those riches will not be enjoyed. Do you get the impression that there are some rich men and women today who are not really enjoying life to its fullest? So you see, how you get there… determines the winners and the losers! Thoughts to Ponder I. Honesty has a definite monetary value. II. What are your core principles by which you operate your business? III. Do these core values embrace honesty and integrity? Comment on this article online at http://atlantareia.com/?p=18815

Erven Kimble 404-606-8909 ElegantHomesLLC@Yahoo.com www.PeopleWhoBuyHouses.com www.Facebook.com/EAKimble Erven Kimble is an accomplished pastor, teacher, author, community leader, licensed Christian Counselor and Real Estate entrepreneur. Erven is a visionary that has faithfully served as the Senior Pastor of a local church in Lilburn, Georgia for twenty years. The author searched the Book of Proverbs and Psalms and extracted wisdom that reference business and finances to produce the series of articles called Business By The Book. The purpose of these articles is to present time tested and proven Biblical principles in a way that is practical, relevant and beneficial to the average business person.

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Atlanta Real Estate Investors Alliance • JAN 2013

Sense of Humor cont. from p14 parcel. We had, “Register to Win Up To $10,000” for which one could hand-write to register on our forms 5 times per day every day. I had an oversize van that I, loaded up with potential buyers to show the property, and told them to remember the parcel number for their Purchase and Sale Agreement. Hundreds of people lined up every day to fill out their registration tickets, exclaiming with hope, “I am going to win that $10,000.” They never read the words, “Up to.” On our first Albany, GA sale, we sold all 99 lots before the auction, we let the lucky draw spin our roulette wheel only to win $1500, and, we sold $1,200,000 in land in a week. That is a true and rush! 5. On another Land Bust Up, we opted to have owner financing due to the rural nature of the property. I explained owner financing to a potential buyer, “The owner is the bank. There is no qualifying. Your credit doesn’t matter. You don’t pay. You don’t stay!” I took him into the office and stated to Owner (same as Porta-Potty), “Mr. Jones here is having a problem grasping owner financing.” The owner said, “Take a real deep breath.” To which Mr. Jones complied. “Now, let it out.” Mr. Jones exhaled. “You just qualified!” stated the owner. To which, Mr. Jones ran out of our office and sped away with his tires screeching. Sometimes, it is worth losing a sale for the story. 6. On yet another Land Bust Up outside of Albany, I was walking the most wooded tract of land on a South Georgia plantation with a potential buying couple. I stepped on a snake and felt in move under me, and jumped high and fast to the right, only to fall on my behind. The husband grabbed a stick, beating the snake to death. Breathless, I dusted myself off, and, figured this sale is over. Much to my surprise, they wanted the tract. Well, I explained that we did not take any

property off the market without a check. To which, the husband, went and drug the dead snake back the dirt road, hoping nobody would get out of the car to see a piece of property with a snake in the road. I dubbed this “check book races.” On another note, when I got back to the office after stepping on the snake, I exasperated, “I stepped on a snake and fell. The husband killed it. It (the snake) had triangles all over it!” To us blonds, two triangles make a diamond. I literally could have been kissed to death on that one. 7. One beautiful October, I was selling land on the Green River outside Saluda, N.C. There were 22 switchbacks coming down this narrow mountain road to the valley where I was selling land. For those city folk, like myself, that don’t know, a switchback is a hairpin back and forth decent to get to the base of a mountain. I had spoken over the phone to a lady bring her elderly husband for a viewing of our colorful parcels. This woman that had finally gotten to the bottom of the mountain with her husband, jumped out of the car and beamed, “Are we here? Finally?” I stated “Yes.” With that, she jumped to her knees and kissed the ground. The next thing I see is her lipstick and nose with a nice rich black dirt outline. Either it was so beautiful, or, they were so impressed with my mountain goat talents for showing property corners, that they bought a tract. How could one not buy the dirt that they had kissed?

Residential Property Showing: 1. Once, I had a listing in Huntly Hills. A new listing came on the market, and I was driving by one morning, so, as a curious agent, I decided use my lockbox to compare it to my listing. Once inside a large dog started growling. I said, “ Hey, Puppy. Good Doggy!” and proceeded t6o preview the house. Back at my office, I went online to see the price (yes, we barely had computers, much

less handheld or portable). The agent comments said: Do Not Go In House Without an Appointment. That Dog Will Bite You.”. Oh, well, my lucky day. Dogs and kids love me, even though I have neither. 2. Another time, also in Huntly Hills (what is it about that neighborhood?), I was showing a house to a prospective buyer. I screamed bloody murder, when something jumped on my back….a monkey. My client burst out laughing, as the monkey, was trying to kiss me. I hope you find the stories entertaining. I realize from writing this I have several more volumes of stories like this. However, in this time of Thanksgiving, Christmas and the Holiday Season, I am very grateful for God, my country, my family, my friends, and, especially, my REIA family of friends. I hope you all know that I am here to help you in any way on any real estate matters, even if it is just advice. Comment on this article online at http://atlantareia.com/?p=18806

Deborah Harris 404-272-9827 AtlantaRealty@KW.com www.CommercialRealtyExperts.com www.Facebook.com/AtlantaRealty www.Linkedin.com/in/CommercialRealtyExperts www.Twitter.com/CommercialKW Growing up In Atlanta, Deborah Harris has watched this city grow into the world recognized city that it is today. Licensed as a real estate agent in 1981, Deborah has several thousand transactions to her credit, numerous awards (The Phoenix Award from the Atlanta Board of Realtors and Top Commercial Agent from Keller Williams Southeast), and dozens of Realtor designations, Deborah, loves negotiating the deal, prides herself on the best internet marketing of properties, and is still is passionate about real estate. We are “the team where experience and technology connect.” Let the hardest working Realtor in Atlanta work for you, too!

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Atlanta Real Estate Investors Alliance • JAN 2013

REAL WORLD REAL ESTATE INVESTING

Financial Calculator - A Wealth Builder’s Most Valuable Tool By Bill Cook

ou’re probably asking “Are you really gonna talk about financial calculators?” and thinking: Yawn, yawn, yawn – wake me when it’s over! Here’s the thing: Our real estate investors group is geared for experienced investors. To master creative deal structuring and financing, we all need to know how to speak the same language. A great communication device that accomplishes this task is a financial calculator. Remember, a financial calculator is about MONEY, not math! Knowing how to make it sing and dance is critical to achieving financial freedom. I promise, once you know how to use a financial calculator, your real estate investing world will never be the same. Plus, you will be head and shoulders above most any investor you meet – including the so-called gurus! Let’s use a financial calculator to answer this interesting question: Can you become a millionaire by delivering pizzas part-time for five years? If you think you can’t, then you’d be W-R-O-N-G! Follow along with me. You get a parttime job delivering pizzas that pays about $125 per week. You invest your $500 in net monthly earnings ($125 x 4 weeks = $500) at 8% interest for 5 years. How much will you have at the end of 5 years? Using a financial calculator, we easily learn that the answer is $37,738.43. Now you invest your $37,738.43 at 12% interest. How much will you have at the

NGaREIA

end of 30 years? Go ahead, I dare you to guess. After plugging the numbers into our financial calculator, we learn our investment would have grown to $1,320,733! That’s right, you’d be a millionaire all because you delivered pizzas part-time for five years and then invested your earnings for 35 years! You’re probably thinking: Good point, calculator boy, but don’t you know you can’t get an 8% yield – much less a 12% yield – on a savings account? After all, right now, my bank is only paying me 0.5% interest. Folks, don’t you know you can’t SAVE your way to financial freedom? To be financially free, you must INVEST your money and let things like compound interest, appreciation, amortization and time work their magic. So you think it’s impossible to find returns of 8% to 12%? What if I told you that returns of 119% are all around you? Back in 2008, there was no way Kim and I would ever consider a trailer as an investment. It’s safe to say we wouldn’t touch one even while holding a ten-foot length of underpinning. That changed when we started running the numbers through our financial calculator. Here’s a pretty typical deal: Buy a singlewide mobile home in a trailer park with an all-in cost of $3,000. Then sell it for $9,500 giving the following terms: $500 down, 18.549% interest, at $250 per month for 53 months. Want to guess

what your yield is on this deal? Would you believe a whopping 119%! Just for grins, what if you invested the $37,738.43 you made from your parttime pizza delivery job at a yield of 119% for 30 years? Ready to have your mind blown? You’d have over – and I swear I’m not making this up – $22 sextillion dollars. I don’t know about you, but I want me some sextillion dollars! Please tell me again why financial calculators are boring! And while you’re at it, explain why they don’t teach kids how to use this wonderful, wealth-building tool in school? Want to learn how to make your financial calculator sing and dance? Gary Johnston (www.GaryJohnston.com) is an incredible teacher. His classes are beyond life changing! We LOVE this guy! Comment on this article online at http://atlantareia.com/?p=18770

Bill Cook 727-420-4810 BillCook2009@Gmail.com www.REIOutpost.com Bill Cook is a full-time real estate investor, speaker and author. He specializes in single-family homes and mobile home parks. Bill believes that real estate investing, especially the act of buying and holding rental property, is the surest way to financial independence and wealth. Bill and his wife Kim run North Georgia REIA where they teach others how to successfully invest in real estate.

North Georgia REIA Monthly Meeting 2nd Thursday of Each Month at 7:00 PM at the Hilton Garden Inn, Cartersville, GA

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Atlanta Real Estate Investors Alliance • JAN 2013

The Best Deals in 2013 cont. from p19 You explain to them that you can help them get their house sold with minimal hassle and without having to come out of pocket (pay) much, if anything at all, to help them get the peace of mind they crave. How will you do this? By finding a lease-purchase tenant buyer to live in their house & make the payments until such time as the property value goes back up and/or they are in the position to secure new financing and buy. You further explain to the seller that this is their best situation, because it solves their problem while at the same time providing an opportunity to someone who desperately wants it that everyone else is ignoring. Of course, not everyone will go for it. But many will, trust me. What are their other options? Short sale, foreclosure, cash for keys, or do nothing & ride it out. So you explain their options to them, and the advantages & disadvantages to each one. Then you show them what you can do for them, and how it makes sense, and get the deal done! Hey, we’re just getting warmed up! I didn’t realize that this article was going to run so long, so MAKE SURE you join us next month for Part Two of this article: “The Best Deals to do in 2013 & Beyond” We’ll cover a few of the important details you’ll need to know, such as how & where

to close your deals; How to Sell these types of Deals; How to get PAID; WHEN to DO these deals; and when NOT to do these deals… and much more! So won’t you join me next month to read Part Two? It’ll be worth your while, I guarantee! Until Next Time, Tony Pearl Comment on this article online at http://atlantareia.com/?p=18635

Tony Pearl 202-556-0670 Tony@TonyPearl.com www.TonyPearl.com www.Facebook.com/TonyPearl

Solutions that help you Make More. Work Less.

www.Twitter.com/TheTonyPearl www.Youtube.com/TonyPearl Tony Pearl is an entrepreneur, copywriter, proud father, mentor, marketing consultant and talented teacher who resides in the Washington, DC area. He has traveled to over 26 countries, speaks 4 languages, and continues to travel extensively. He has been a professional Ballroom and Latin dance instructor, competitor, and exhibitor for over 19 years. As a Real Estate Investor, Tony has bought and sold over Ten Million dollars worth of real estate, and has been educated by and associates with the best.

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Lender Negligence cont. from p21 may show that these notes arrived after the trust was closed out. The Pooling and Servicing Agreements that guide the performance and servicing for the trust may require a higher performance level than the notes included in the trust would warrant. The terms in the notes will almost certainly not match the terms that the investors in the trust agreed to. One of the key forms of fraud in the lending process it that the name(s) of the true lender(s) will never appear on the note for a mortgage that was securitized. Therefore the buyer never had the opportunity to know who actually provided the funds for the loan.

Structuring Your Business cont. from p12 An LLC is owned by one or more interest holders called “members”. A member or members can exercise management rights over their LLC. However, an LLC also allows the members to designate specific managers who may or may not be members, to manage the entity as is done in many corporations. Like a corporation, an LLC has the advantage of “perpetual” existence — its business operations can continue despite the death of someone who owns a business interest. Ownership interests are transferred easily from one member to another or to an outside party wishing an ownership interest in the LLC. Liability under a LLC provides limited liability for its owners similar to shareholders in a corporation. The LLC owner risks only their investment in the business. Other personal assets are not at risk, unless the owner has personally guaranteed debt for the LLC. In those cases the owner could be held liable up to the debt guarantee but is not exposed to operational liabilities above the LLC assets. Tax liabilities for LLC under IRS regulations allow for LLC with more than one member to be taxed as a partnership unless it elects to be taxed as a corporation. If it is treated as a partnership, the LLC’s earnings will be apportioned to its owners and taxed at their personal tax rates, similar to the tax treatment of a limited partnership. However, it is possible to elect

A huge percentage of the loans written from the late 90s until about 2008 are full of these sorts of fraudulent activities. While it is extremely galling to see what the banks have been getting away with for so long, it also creates a huge opportunity for real estate investors. Not only are we able to use this information to help underwater homeowners get out from under their homes with no short sale, no deficiency, and no coming out of pocket, but we are able to pick up pretty houses at incredibly low prices. If you would like more information on how you can get involved in helping underwater homeowners while doing some awesome deals, give my office a call at 706-485-0162.

corporate tax treatment, whereby it will be taxed as a corporation, not something that most people would choose. An LLC with only one member can be treated as a disregarded entity for tax purposes and will flow straight over to the single member’s personal tax return and taxed at their personal tax rate. The LLC allows for its member to avoid the double-taxation of corporations and ease of filing of personal tax returns. LLC’s are clearly the simplest entity to choose from for real estate holding companies. Administration set up and record keeping required for LLC’s are easy to manage for the protection they provide. An LLC has an “operating agreement” which, like the agreement of partnership or LP, determines the conduct of the business, including the rights and powers of its members, managers, and employees and which generally allows the members to structure the company’s affairs as they see fit, rather than as a statute requires for corporations. One thing to remember about LLC’s is the fact that they are state regulated and should only be set up and used in states in which they do business in. Georgia has created some of the most owner and business friendly LLC protection and record keeping requirements in the United States. The sole reason is to attract businesses and investment to this state. You as a real estate investor should take full advantage of that fact for your holding companies.

Comment on this article online at http://atlantareia.com/?p=18804

Bob Massey 706-485-0162 info@REWealthCoach.com www.REWealthCoach.com www.Facebook.com/BobMasseyOfficial Bob Massey is a recovering corporate executive who is now living the dream running his own real successful estate investing business and teaching others how to do the same. In the process he has become the nation’s leading educator on the foreclosure investing the foreclosure process.

When choosing the right type of entity for your real estate holdings, it has become clear to me and many other real estate investors that LLC’s are simply the best choice. They provide good protection against liabilities, ease of tax filings, and administrative ease along with personal tax rate options. A little upfront planning will insure your long term success as a real estate investor. As always I wish you the best in all you do. Comment on this article online at http://atlantareia.com/?p=18863

Chris Littleton 678-782-1004 ext. 217 CLittleton@SRNhomes.com www.SRNhomes.com www.Facebook.com/SRNhomes www.Youtube.com/SRNhomes Chris Littleton is Co-Owner & President of Solutions Realty Network, Inc., a Real Estate Investment and an Asset Management Brokerage in the great state Georgia. He first become a landlord in 1993 when a job relocation left him faced with a choice of selling his home at a loss or generating income by leasing it. This began his passion for BUY & HOLD investing. Chris has assisted with over $100 million in investor transactions and manages closes to $4.5 million in annual property incomes for his clients.

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Atlanta Real Estate Investors Alliance • JAN 2013

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Atlanta REIA Membership Application

Mail Application to Atlanta REIA, 2700 Braselton Hwy, Suite10-183, Dacula, GA 30019 or Fax to 770-216-1560

Membership Plans - Choose a Membership Plan

 Silver Membership for Individual: $100/year

 Gold Membership for Individual: $300/year

 Silver Membership for Couple: $150/year

 Gold Membership for Couple: $300/year

Applicant Information - Please print clearly Applicant #1:

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Terms of Sale, Disclaimer & Release The undersigned Applicant(s), hereafter called the "Applicant" understands and acknowledges that membership in the Atlanta Real Estate Investor Alliance, hereafter called "Atlanta REIA", absolutely does NOT entitle nor make Applicant a legal member of Atlanta REIA, LLC the company. Applicant acknowledges that Atlanta REIA does not render legal, tax, economic or investment advice. All programs are provided with the understanding that Atlanta REIA is not engaged in rendering legal, tax, or other professional services. If legal, tax or other expert assistance is required, the services of a competent professional should be sought. Atlanta REIA does not investigate its members, nor vouch for, nor make representation as to the honesty, integrity, reliability, motives and/or resources of its members, officers, directors, employees, agents, and or contractors. The Applicant, in consideration for his/her acceptance as a member of Atlanta REIA, hereby releases, discharges and agrees to indemnify Atlanta REIA, its officers, directors, members, employees, agents, and/or contractors from any liabilities now accrued, or which may hereafter accrue, from their actions, inactions, or communications made by Atlanta REIA and/or officers, directors, members, employees, agents, and/or contractors in or through their respective capacities with Atlanta REIA. Applicant agrees to comply with the terms and conditions described herein, the Code of Ethics and any other terms described on our website at AtlantaREIA.com as well as any other Atlanta REIA rules and regulations. Applicant agrees and acknowledges that Atlanta REIA may enforce these codes, terms, rules and regulations at its sole and absolute discretion and may terminate this membership at any time for any reason whatsoever. Applicant grants to Atlanta REIA, its representatives and employees the right to take photographs, video or audio of Applicant and Applicant's property. Applicant authorizes Atlanta REIA, its assigns and transferees to copyright, use and publish the same in print and/or electronically. Applicant agrees that Atlanta REIA may use such photographs, video and audio of Applicant with or without Applicant's name and for any lawful purpose, including, but not limited to, publicity, illustration, advertising and web content. Applicant grants permission to Atlanta REIA to contact Applicant regarding membership and related business by phone, fax, email, text message, chat programs, social networking, automated voice broadcast dialers or any other means necessary. By completing this application, Applicant agrees to give Atlanta REIA permission to bill the credit card above for the membership plan selected above. Applicant acknowledges and agrees that the term of membership is one (1) year and that billing for membership will be automatically renewed for one (1) year upon expiration at the then current membership rate and that the appropriate charges be applied to Applicant's credit card on file. Should Applicant decide to cancel membership, a written notice of cancellation must be emailed, faxed or sent via postal email to Atlanta REIA at the address, email or fax below thirty (30) days prior to the next billing or renewal period. Atlanta REIA must acknowledge receipt of this written cancellation notice for it to be valid. Membership dues are NON-REFUNDABLE for any reason whatsoever. Applicant promises NOT to initiate any refunds or credit card charge backs for these membership dues and related charges at any time. Applicant agrees that Atlanta REIA may change the terms of this Agreement or its membership dues at any time by posting such changes to our website at AtlantaREIA.com. By continuing membership, Applicant agrees to be bound by such changes. Applicant will send all written notifications to: Atlanta REIA, 2700 Braselton Hwy, Suite10-183, Dacula, GA 30019. Fax: 770-216-1560 Email: notices@atlantareia.com With my signature, I accept the "Terms of Sale, Disclaimer & Release" and I authorize Atlanta REIA, LLC to charge my credit card for the membership plan above as well as total recurring amount shown. I further acknowledge that these membership dues are non-refundable.

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Atlanta Real Estate Investors Alliance • JAN 2013

Atlanta REIA Meetings Calendar http://AtlantaREIA.com/Meetings

PLEASE NOTE: This schedule is subject to change. Visit http://AtlantaREIA.com/Calendar for the most current schedule. January 7th, 2013

1st Sunday of Each Month Cash Flow Players Group Meeting 4:30 PM – Game Over Secrets Factory 2030 Powers Ferry Rd SE, #440, Atlanta, GA Leader: Alan McDonald http://cashflow.atlantareia.com

1st Monday of Each Month Late Nite Networking Dunwoody 9:30 PM – Late Nite Tilted Kilt, 1155-B Mount Vernon Hwy, Atlanta, GA Leader: Lee Budden http://main.atlantareia.com

2nd Wednesday of Each Month Spanish Investors Networking Group (SING) 6:30 PM – 8:30 PM Taco Depot 4788 Sugarloaf Pkwy, #107, Lawrenceville, GA Leader: Michael Vazquez http://sing.atlantareia.com

Atlanta REIA Main Meeting 5:30 PM – 9:00 PM Crowne Plaza Ravinia Hotel 4355 Ashford Dunwoody, Atlanta, GA Leader: Dustin Griffin http://main.atlantareia.com

3rd Wednesday of Each Month Atlanta REIA North Meeting 6:30 PM – 8:30 PM 1960 Skylar Hill Dr, Suite D, Buford, GA Leader: Dustin Griffin & Gordon Catts http://north.atlantareia.com 3rd Wednesday of Each Month Late Nite Networking Buford 9:00 PM – Late Nite Tilted Kilt 3480 Financial Center Pkwy, #M1080, Buford, GA Leader: Dustin Griffin & Gordon Catts http://north.atlantareia.com

2nd Wednesday of Each Month I Love Marketing Group 7:00 PM – 9:00 PM Social Vinings, 3621 Vinings Slope SE, Atlanta, GA Leader: Rock Shukoor http://ilm.atlantareia.com

3rd Thursday of Each Month Savannah REIA 6:30 PM – 9:00 PM Gallery Espresso 234 Bull St, Savannah, GA Leader: Aislee Jackson http://savannahreia.com

1st Monday (Once Per Quarter) - JAN 7TH! Short Sale & Foreclosure Group 3:00 PM – 5:30 PM Total Wine & More 124 Perimeter Center W, Atlanta, GA Leader: Bob Massey http://ssf.atlantareia.com

2nd Thursday of Each Month Atlanta REIA South Meeting 6:30 PM – 8:30 PM Giovanna’s Italian Kitchen 1375 Virginia Ave, East Point, GA Leader: Reggie Jackson & Gordon Catts http://south.atlantareia.com

4th Monday of Each Month Atlanta REIA West Meeting 6:30 PM – 9:00 PM Cherokee Cattle Company 2710 Canton Rd, Marietta, GA Leader: Leslie Mathis http://west.atlantareia.com

1st Monday (Once Per Quarter) Active Investors Group 3:00 PM – 5:30 PM Total Wine & More 124 Perimeter Center W, Atlanta, GA Leader: Gordon Catts

2nd Thursday of Each Month North Georgia REIA 7:00pm - 9:00pm Hilton Garden Inn Cartersville, 24 Liberty Drive, Cartersville, GA Leaders: Bill & Kim Cook http://reioutpost.com/

4th Monday of Each Month Late Nite Networking Marietta 9:00 PM – Close Cherokee Cattle Company 2710 Canton Rd, Marietta, GA Leader: Leslie Mathis http://west.atlantareia.com

2nd Thursday (Once Per Quarter) Small Business Group (SBG) 3:30 PM – 5:30 PM 5 Seasons Brewing 5600 Roswell Rd, Sandy Springs, GA Leader: Karen Bershad http://sbg.atlantareia.com

4th Tuesday of Each Month Note Buyer Group Meeting 6:30 PM – 8:30 PM Olive Garden 2467 Cobb Parkway SE Smyrna, GA Leader: Tom Boyer http://nbg.atlantareia.com

3rd Monday of Each Month Movers & Shakers Lunch Meeting 11:00 AM – 1:30 PM 5 Seasons Brewing3655 Old Milton Parkway, Alpharetta, GA Leader: Gordon Catts http://moversandshakers.atlantareia.com

4th Wednesday of Each Month Beginning Investors Group Meeting (BIG) 6:30 PM – 9:00 PM Rescheduled for Chef Rob’s Caribbean Cafe January 10th 5920 Roswell Rd NE, #A117 Sandy Springs, GA Leader: Alan McDonald http://big.atlantareia.com

1st Monday (Once Per Quarter) Mobile Real Estate Rockstars Group 3:00 PM – 5:30 PM Total Wine & More 124 Perimeter Center W, Atlanta, GA Leader: Don DeRosa http://rockstars.atlantareia.com

1st Tuesday of Each Month Rescheduled for Mountain REIA January 8th 6:30 PM – 9:00 PM Golden Corral 2025 Market Place Blvd, Cumming, GA Leader: Gordon Catts http://mountainreia.com 1st Wednesday of Each Month Creative Deal Structuring Group (CDS) Rescheduled for 7:00 PM – 9:00 PM January 9th Whitehall Tavern 2391 Peachtree Rd NE, Atlanta, GA Leader: Russ Hiner http://cds.atlantareia.com Every Thursday (Except Major Holidays) Have & Wants Meeting 1:30 PM - 3:30 PM 5 Seasons Brewing 5600 Roswell Rd, Sandy Springs, GA Leader: Joe Thompson http://havesandwants.atlantareia.com

3rd Tuesday of Each Month Gwinnett County Group (The Fish Club) 7:00 PM – 9:00 PM Red Lobster 2055 Pleasant Hill Rd, Duluth, GA Leader: Aaron McGinnis http://fishclub.atlantareia.com

4th Thursday of Each Month Cash Cows Commercial Group 11:30 AM – 1:00 PM 5 Seasons Brewing, 5600 Roswell Rd, Sandy Springs, GA http://cashcows.atlantareia.com

http://AtlantaREIA.com

PLEASE NOTE: This schedule is subject to change. Visit http://AtlantaREIA.com/Calendar for the most current schedule.

ATLANTA REIA CALENDAR OF EVENTS JANUARY 2013 SUNDAY

MONDAY

Happy New Year! 2013 Is Here! 6

TUESDAY 1

7 Atlanta REIA 8 MAIN MEETING Mountain REIA with Ron LeGrand 6:30pm – 9:00pm

THURSDAY 3

FRIDAY

SATURDAY

Haves & Wants Meeting 1:30pm - 3:30pm

Multi-Family Investing Workshop with David Lindahl 8:30am – 5:00pm

I Love Marketing Group 7:00pm – 9:00pm Creative Deal Structuring Group 7:00pm – 9:00pm

Haves & Wants Meeting 1:30pm - 3:30pm Atlanta REIA South Meeting 6:30pm – 8:30pm North Georgia REIA 7:00pm - 9:00pm Beginning Investors Group 7:00pm - 9:00pm

Gwinnett County Group (The Fish Club) 7:00pm – 9:00pm

Atlanta REIA North Meeting

Haves & Wants Meeting 1:30pm - 3:30pm

5:30pm – 9:00pm Short Sale & Foreclosure Group 3:00-5:00pm

WEDNESDAY

RESCHEDULED FOR FEBRUARY

Late Nite Networking Buford

RESCHEDULED FOR FEBRUARY

Captains of the Deal Cruise

(L-R) Pete Fortunato, Dyches Boddiford, Bill Cook and Kim Cook

See http://CaptainsOfTheDeal.com for more information.

Movers & Shakers 11:00am - 1:30pm

Note Buyer Group Meeting 6:300pm – 8:30pm

Beginning Investors Group Meeting (BIG) 6:300pm – 9:00pm

Cash Cows Commercial Group 11:30am - 1:00pm Haves & Wants Meeting 1:30pm - 3:30pm

Atlanta REIA West Meeting 6:30pm – 9:00pm

Ron LeGrand’s Real Estate Investor Convention 2013. For more info see 5 DAYS http://Ron.AtlantaREIA.com

Haves & Wants Meeting 1:30pm - 3:30pm

Late Nite Networking Marietta 9:00 PM – Close

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