Realty411 - Featuring Eric Counts, Credit Nerds by Realty411

PUBLISHER Linda Pliagas PUBLISHED BY Pliagas Enterprises, Inc. BUSINESS ADVISORS Steven Kendis, MLO John Dutson ADVERTISING Walt Adams Jason Burke Lori Peebles DESIGN DIRECTOR Dru Soriano EDITORIAL DIRECTOR Lori Peebles EDITORIAL STAFF Tim Houghten Stephanie Mojica Karen A. Walker COPY EDITOR Bruce Kellogg Stephanie Mojica PHOTOGRAPHER John DeCindis CONTRIBUTORS Linda Pliagas Gary Massari Lloyd Segal Scott Meyers Michael Mikhail Edward Brown Randy Newman Kathy Kennebrook Stephanie Mojica Dan Kryzanowski Peter Vekselman Rick Tobin WEB MASTER Maria Landicho MARKETING Holly Lynn Rosa Houghten EVENTS & EXPOS Lawrence Ruano Michael Ringwald LEGAL COUNSEL Philip W. Boesch, Jr. Boesch Law Group 805.693.1497 | Visit www.Realty411.com

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TABLE OF CONTENTS

Networking Changes EVERYTHING A Real-Life Realty411 Success Story Linda Pliagas

Using a Probate Lead Service Can Make Your Business Efficient and Profitable Leon McKenzie

12 Steps to the Closing Table and the Big Check Kathy Kennebrook

Why You Need to Create a Customer Plan for Your REI Business Sharon Vornholt

8 Simple Steps To Riches In Real Estate Or In Any Other Field, For That Matter Reggie Brooks

7 Personal Finance Questions to Ask Yourself Before Getting a Mortgage Dr. Teresa R. Martin, Esq.

What is Like-Kind Property? Rusty Tweed

FEATURED Eric Counts 70 The Nerdy Side of Credit Restoration

Bruce Kellogg and Linda Pliagas

Knowledge

Using a Limited Liability Company As The Beneficiary of Your Land Trust Randy Hughes

Real Estate Investing: How to Make 3 Times More Returns Sensei Gilliland

Realty411 Resources Let Our Premiere Sponsors Help Guide Your Real Estate Business to Success

Hiring and Managing Property Managers Bruce Kellogg

LINDA'S LETTER

Networking Changes EVERYTHING A Real-Life Realty411 Success Story By Linda Pliagas, Publisher/Editor

Linda Pliagas, publisher, with the mother/daughter rehab duo, Karen E. Laine and Mina Starsiak, from HGTV's Good Bones. Photo by Ashley Murphy

hank you for connecting with Realty411 magazine once again. Since 2007, Realty411 has been hosting events and publishing important resources for the masses to learn real estate investing. I've probably met thousands of people personally by now all over the country, investors of all experience levels — from the newcomer to the advanced rehabber. I've spoken with inventors just getting started, as well as national landlords of multimillion dollar portfolios. What a thrill to know they read our publication, visit our

website, and follow us online! Hopefully, we'll have a chance to meet you in person soon too. You see, networking really is the key to success in this business. As a matter of fact, I'd like to share a success story about one of our expo guests who recently engaged in a joint partnership with one of our educators, Alton Jones. This amazing business relationship and friendship began at our Realty411 networking event. Alton, a former LAPD officer, is an investor and mentor. He spoke at one of our real estate investing expos in Southern California last year where

he met a Realty411 reader. That individual signed up to become one of Alton's students, and they began a joint venture (JV) business relationship. Fast forward over one year later, now Alton and our Realty411 reader are closing a real estate transaction in one week for over $1.375M. Plus, the partnership worked out so well, they've decided to continue working on two more transactions. In fact, our Realty411 reader and Alton will be generating $500K in gross revenues from multiple deals together! When I heard this, I jumped out of my chair and cheered — you'd think I was the one cashing that big, fat check. Honestly, it just feels amazing knowing that Realty411 brought two wonderful people together who TOOK ACTION and made it happen! For me, as the founder and publisher, knowing we are positively impacting people's lives is the most rewarding aspect of my professional life. This is not the only successful Realty411 true story, I have so many others to share, and I will be doing so in future editions. Folks, Realty411 is truly assisting investors in building wealth and igniting a passion of real estate in many people. Our publications

and events have propelled the realty careers of many newcomers in this industry. Another perk to being in this business is watching our supporters benefit from sponsoring our events and being a part of our publications. "My investment (sponsoring events and advertising) with Realty411 has paid off 1,000X," Alton shared with me recently. In fact, he admits that because of his commitment to NETWORKING at his own events, plus our Realty411 expos, he is well on the path to earn nearly $1,000,000 in gross profits in a bit over a year. Real Stories, Real Life, Realty411... What can Realty411 help you with? Whether you are a professional educator who wants to speak with serious people who are truly ready to change their lives, or you are an active or aspiring investor ready to PIVOT...Realty411 can help you make 2020 the year that changes EVERYTHING. Let's connect soon...Remember, networking could be the crucial ingredient for your success too.

Using a Probate Lead Service Can Make Your Business Efficient and Profitable By Leon McKenzie, Managing Partner, US Probate Leads

ave you been working in the probate business for a while and aren’t sure you are making any progress? Do you find yourself dreading your trips to the local courthouse, frustrated by the amount of paperwork to sift through, when you could be spending time with friends and family? If this describes your situation, then it may be time to take a hard look at how using a lead service can save you time and help make you money. Professional probate leads services are designed to fulfill the needs of probate investors in two major areas. First, by using a probate leads service, you can have access to a customized list of probate leads that are located in the areas that you choose to target. Secondly, taking advantage of a leads service can make your business run more profitably and efficiently. These are the main reasons that highly successful probate investors take advantage of a leads service.

Probate Leads Fuel Your Business When a loved one passes away, they generally leave quite a bit of property behind, which has to be sold by the Executor of the estate. The Executor is the court appointed representative of the individual who has passed away and has the job of making sure that legal and tax paperwork is filed in a timely manner and, once the assets are sold, will make distributions to heirs as noted by the will or the court system. Gary Digrazia writes, “In my Probate Real Estate business our life blood, of course, is the leads we work. Estates have real property which needs to be sold to settle the estate. Where do we receive the leads and how do we have a constant supply for now and future business?”

This is really a core question for every probate real estate investor to answer. If you are working in the probate business, then you know that having access to data is critical in order to move your business forward. As an investor, you certainly can take the time to visit your local courthouse to see the records in person. When you are beginning your business, this is probably a good exercise in understanding the process of how probates are filed and what is necessary in ensuring that the property is sold and the profits are distributed. Taking the time to see and understand the process can be helpful in gaining a broad understanding of how the probate process works. That said, taking half a day on a regular basis to visit your local courthouse can become a drain on your business. In addition to the travel involved in going, there is the use of gas, the time spent parking, paying for parking if necessary, and then the hours spent finding and locating viable leads. While having access to viable probate leads is a necessary part of the business, it frankly might not be the best use of your time.

Using US Probate Leads Gives You an Edge

Why Do Executors Want to Sell?

As an entrepreneur, how you spend your time directly influences the ability of your business to succeed. Going to the courthouse week after week can eat up a good deal of the time that you have available to actually work your business. While you are at the courthouse, you could be sending communications campaigns, meeting with potential sellers, networking with attorneys that specialize in estate law or speaking to business and community groups in the area, getting more exposure for your business. Taking the time to dig through records simply might not be the best use of your time. This is the reason that many probate professionals choose to use a probate leads service. Said Leon McKenzie, the CEO of US Probate Leads, “Our researchers, numbering into the hundreds, are in county courthouses across the country finding a never ending stream of probate real estate leads. This really puts us in the unique position of being the only source of probate real estate leads with such a broad reach into this niche market. US Probate Leads is second to none when it comes to both the quality and the breadth of research that goes into providing you with prospects that are both well vetted and favorably located for you.” Having probate leads that are focused on areas and types of property that you are looking for gives you an edge in the real estate market. While other probate entrepreneurs might prefer to get their leads the “old fashioned way” by going to the courthouse, you can move right to contacting the Executor and visiting the property. By the time a competing probate investor finds what they are looking for, you may have already made a deal! This is one of the most compelling reasons to use US Probate Leads.

Once a probate has been filed with the courthouse, in order to have the best opportunity to purchase it at a low cost, you’ll have to move quickly. Having access to a lead service can keep you abreast of the changes in your area and immediately shows you new filings. Finding out as soon as a filing has been made gives you a distinct advantage in providing you time to drive by the property and also in contacting the seller. There are real reasons that you want to have access to this information so that you can make a deal. While leads are generally good for up to eighteen months, there are many Executors that move at a rapid pace once a loved one has passed away. They may do this for a variety of reasons. If the Executor is struggling with grief, it may be easier to simply sell the family home to eliminate the painful memories. Also, if the Executor lives out of state, they may feel the need to sell as soon as possible. This is because they will be facing repairs and maintenance of a home that they cannot easily supervise. Selling the home quickly is a way to eliminate that stressor. Executors also may need cash in order to pay bills that have accumulated in the individual’s name, such as funeral expenses, tax bills, medical charges or credit card expenses. By selling the home quickly they will have cash to cover these financial needs. The Executor may also have no one who is willing to live in the property and may not want to be in the position of having to rent it out. All of these reasons are what compels an Executor to move quickly when selling a probate property. If you have access to professional probate leads then you can take advantage of making a deal to assist them in moving on from their family home. This is an important reason to have a professional lead service identifying options in your area.

“Our researchers, numbering into the hundreds, are in county courthouses across the country finding a never ending stream of probate real estate leads. This really puts us in the unique position of being the only source of probate real estate leads with such a broad reach into this niche market. US Probate Leads is second to none when it comes to both the quality and the breadth of research that goes into providing you with prospects that are both well vetted and favorably located for you.”

The Professional Probate Leads Process by US Probate Leads

diversify as well. Instead of simply buying and selling or holding and renting residential real estate, you may be able to find a business that will generate additional cash or add commercial or vacation homes to your portfolio. Having leads gives you this type of flexibility which will allow you to adjust to changing market conditions quickly.

It might seem too good to be true to be able to have probate leads delivered into your inbox on a regular basis. With the US Probate Leads service, you can have just that. Said McKenzie, “We have relationships with banks and credit card companies that utilize our service. These contacts have allowed us to establish a network of Data Researchers throughout the US. This network coupled with our proprietary data mining tools and processes allow us to access probate data at a cost which allows us to provide reasonably priced information to you. Our network of Data Researchers located throughout the US provides the first wave of data access. We couple that with proprietary tools and processes which allow us to access the data you need.” What this means is that every probate investor working with the experts at US Probate Leads can have access to probate real estate records without the hassle of sifting through tons of other types of filings, saving time and effort. McKenzie went on to say, “We provide all estate related probates. Most probate courts also handle guardianships, conservatorships and cases pertaining to minors. There can be a great deal of excess information in these records – information that does not benefit you as a Probate Investor. We cull those records out and provide you records that have the potential for having real estate as part of the estate.” Once the record has arrived to your inbox, all you have to do is to contact the Executor and follow up on a regular basis if it is a property that you are interested in pursuing. This streamlined process is what allows probate investors to net huge profits each and every year.

“We have relationships with banks and credit card companies that utilize our service. These contacts have allowed us to establish a network of Data Researchers throughout the US. This network coupled with our proprietary data mining tools and processes allow us to access probate data at a cost which allows us to provide reasonably priced information to you." Leon McKenzie

US Probate Leads is the Expert in Probate Leads Service Now that you understand why it is critical to have access to a probate leads service and how the process works, it is time to take advantage of what US Probate Leads has to offer. Whether you are a new probate entrepreneur or you have been in business for a long period of time, you can be sure that adding automated data retrieval will give you a competitive edge in your business investments and access to the newest properties coming on the market. Contact US Probate Leads today for more information on how we can assist you in accessing probate leads for your county. Our trained, friendly team of probate associates will help you get set up in just minutes. And, if you are looking for additional support, look to US Probate Leads for software, books, webinars, seminars and individualized mentoring programs that can take your business to the next level. Call today!

Finding More than Just Residential Real Estate with Professional Probate Leads When you choose to use a professional probate lead process like the one offered by US Probate Leads, you may find more than just residential real estate. Many probate cases have homes, vacation homes, businesses, commercial property, apartments and personal property attached to them. This means that there are many ways to profit. Having access to information that will propel your business forward is a powerful tool in a competitive market. Being able to access information about more than just residential real estate offers your business the ability to

Sources: http://activerain.trulia.com/blogsview/1936988/howdo wefindprobateleads http://www.usprobateleads.com/FAQ.aspx

12 Steps to the Closing Table and

the Big Check By Kathy Kennebrook (The Marketing Magic Lady)

2. Make sure that the lender or the mortgage broker orders credit and an appraisal on the property immediately. Usually, I will not consider a buyer who has not already been prequalified, so usually the credit check has already been done. Many lenders will try to wait until they get the contracts and other paperwork in before ordering the appraisal. This is a nono. If you wait on the appraisal, it can hold up your closing by two to three weeks. Plus, if this buyer doesn’t end up buying the property, the appraisal can be used for the next buyer. Most appraisals are good for six months and now you have an appraisal that has already been paid for.

kay, so your property is under contract, you’ve prequalified your prospect; they are working with the lender and everything is moving right along, right? Not necessarily. There are several steps to a successful closing and we are going to cover those one by one. Now remember, once you have your dream team in place, you will have the people available who will handle all of the details for you. In the meantime, you still need to know what all the steps are so you know everything gets handled properly. 1. Make sure you get a big enough deposit from your buyer so they have some real dollars invested in the deal. Even if they are going for one hundred percent financing I still get as much as I can in order to secure the deal better. If your buyer puts down a larger deposit they are usually more committed to going through with the closing, so this is a requirement for me. I won’t even consider a deposit less than $1,000.00, but I always try for as much as I can get. The higher dollar the property is, the more deposit I require.

3. Follow up with the loan processor to make sure the appraisal has been ordered and that the other parts of the closing are moving along. Many times your title agent or your Realtor or your sales person will do this for you, after all they want to get paid too. Make sure they have everything they need from the buyer regarding loan documentation.

Follow up and make sure that title work has also been started. You want to make sure that everything is done in a timely matter so that there are no holdups when you go to close. Every once in awhile you may discover some small glitch in the title work that needs to be addressed, such as a deed that wasn’t done correctly. There would need to be an additional quit claim deed done to correct the mistake. Make sure the title agent understands the contract paperwork and what entity the funds are to be paid to. You also want to make sure they do the 1099 correctly so the right entity gets taxed. You will also want to provide the title company with a copy of the existing title policy. This means that they will be able to come forward from the date of your policy which takes less time and this may make the title search cheaper. Make sure the title agent understands who is going to pay for what regarding closing costs.

6. If your buyers are using city or county funds to supplement their loan, there will need to be another inspection done by the city or county. This is a stipulation of their program. Make sure this gets done quickly in order to address any issues that could come up with the inspection. If your buyers are having a home inspection done, make sure it is done right away. Not getting it done in a timely manner can hold up your closing. 7. Does the lender have your information in order to be able to order a payoff on any underlying loans on the property? Have they received the payoff yet and have you reviewed it to make sure it is correct? Don’t just assume that just because they have been given figures that those figures are

correct. Make sure they fax you a copy of the payoff for you to review. Double check the per diem amounts and make sure you aren’t being charged a prepayment penalty if there isn’t one due. Make sure the most recent payment has been credited against the amount due. These are problems I have had to deal with. If the loan is with a private lender, sometimes it takes even longer to get a payoff from them. Some of them don’t know how to prepare one, so they need the help of the title company or their real estate attorney for this. This is also the time you might be able to negotiate a discount with them. This works especially well if it was a seller held mortgage. We have gotten private lenders and sellers to negotiate discounts on loans on several occasions which just made our paycheck bigger.

5. Call the loan processor to make sure the property appraised for at least the amount of the contract. Make sure your buyer has ordered a termite inspection, a survey, a random inspection or whatever else is required by the lender in order to close. Is there anything you can do to move things along? If you have a copy of a fairly recent survey, you can provide a copy. This will also save time and move you closer to the closing. Has your buyer’s deposit been credited? Have they gotten the paperwork they need to the lender including employment verification and rental history? These are all things you need to stay on top of.

10. So now we have a set closing date. Make sure you contact the closing agent to make sure you get a copy of the HUD or closing statement before the closing takes place and before you arrive at a closing. Very recently we had a closing that didn’t take place because once we got the HUD all the figures including the asking price and seller assisted closing costs had all been changed. The closing price listed on the HUD was several thousand lower than the contract had called for. I have never seen anything like it and the deal never closed. Check the numbers! If there is a Realtor fee involved make sure the percentages are correct. Check the pro rated amounts you are being charged for property taxes or association fees. When you close on a property during the year, say in June and property taxes are due in October; you have to reimburse the buyer for the property taxes from January until the closing date in June since they didn’t own the property during that time period. The same would go for any association fees there might be. You will have to reimburse the buyer for the period during the month that they did not own the property. Double check to make sure these figure are correct. In my contract, if we are assisting the buyer in any way with closing costs, the buyer can’t walk away from closing with more than five hundred dollars. So this is another figure we check. Any amount over the five hundred dollars is credited back to our side on the closing statement.

8. Has the buyer’s loan been approved? If not find out what the problem is and how to fix it if it can be fixed. If the loan has been approved find out what the proposed closing date is going to be. Has your buyer ordered insurance yet? You need to check this out and it needs to be done as soon as possible. This is another area where you could have a glitch. Sometimes the age of the property or the location of the property becomes an issue. For example, here in Florida where I live, if there is a hurricane brewing, we end up in a “box” which is a period of time where you can’t buy insurance until a hurricane passes. This can hold up a closing for several days unless the insurance is already in place. A buyer must purchase a homeowners policy for one year and it must prepaid at closing.

11. Call your buyer and make sure they have gotten a cashiers check for any monies they have to bring to closing and make sure they know where it is and what time the closing takes place. Make sure they bring a photo ID with them. The lender will require this. Believe me when I tell you that these are all lessons learned from experience.

9. If you are selling a condo or a home with a home owners association, make sure the lender and the buyers have a copy of the home owner association rules and documents and that the buyers have set up their appointment for their meeting with the condo association or home owners association. If they are not approved by the condo association or homeowners association, the rest of the closing is a mute point. You need to make sure your buyer’s get through this process successfully.

12. Now, Show up at the closing and don’t forget to bring the keys or garage door openers. Take several deep breaths and try to relax. Once you get through the closing take another deep breath, call your spouse and go out to dinner to celebrate.

Here is another point for you to consider. In my business, it is rare that I go to closings anymore since the whole closing process is outsourced. The funds from the closing are directly wired to an account for us so we get paid right away. If I do go to a closing, I don’t go at the same time as the buyers. I usually go right after they are done with all their paperwork. The paperwork on a closing for a buyer is fairly time consuming and needs to be explained to the buyer by the title agent. I don’t like sitting at closings for an hour or more until I need to sign my documents. If you have done

your due diligence and followed all the steps in the closing process, there isn’t really anything that can go wrong at the last minute, so breath easy but expect the worst. Then when you get through the closing, cash your check or make sure your wire has arrived and go to dinner to celebrate!! For more information on Real Estate Investing tools and Marketing to Find Motivated Sellers, Buyers and Lenders visit Kathy Kennebrook’s website at www.marketingmagiclady.com. While you are there sign up for the free Monthly Newsletter and receive $149.00 in real estate investing tools absolutely FREE!

"Check the numbers! If there is a Realtor fee involved make sure the percentages are correct. Check the pro rated amounts you are being charged for property taxes or association fees. When you close on a property during the year, say in June and property taxes are due in October; you have to reimburse the buyer for the property taxes from January until the closing date in June since they didn’t own the property during that time period. The same would go for any association fees there might be. You will have to reimburse the buyer for the period during the month that they did not own the property. Double check to make sure these figure are correct." Kathy Kennebrook

Kathy Kennebrook Kathy Kennebrook is the ultimate success story. She spent over 20 years in the banking industry before discovering the world of real estate. After attending some real estate seminars this 4 foot 11 mother of two got really excited and before you know it she’d bought and sold hundreds of properties using none of her own money or credit. Kathy holds a degree in finance and has coauthored the books The Venus Approach to Real Estate Investing, Walking With the Wise Real Estate Investor, and Walking With the Wise Entrepreneur which also includes real estate experts Suze Orman, Robert Kiyosaki, and Dr. Wayne Dyer.

She is the nation’s leading expert at finding highly qualified, motivated sellers, buyers and lenders using many types of direct mail marketing. She is known throughout the United States and Canada as the Marketing Magic Lady. She has put together a simple stepbystep system that anyone can follow to duplicate her success. Kathy has been speaking throughout the country and across Canada for over 14 years and has shared the stage with Ron LeGrand, Dr. Phil, Dan Kennedy, Mark Victor Hansen, Ted Thomas and Suze Orman to name a few. Kathy is going to share with you how she generates a seven figure income by mailing a handful of letters throughout the year to highly selected targets by knowing exactly what to send them, who to send them to and exactly how to deliver her message. She will teach you the secrets of prescreening and automating your marketing and follow up systems to put your entire Real Estate business on autopilot.

Why You Need to Create a Customer Plan for Your REI Business By Sharon Vornholt

Exactly What Is a Customer Plan and Why Do You Need One?

oday I want to talk about why you need to create a customer plan for your real estate investing business (in addition to a marketing plan) and exactly what a customer plan is. This is a new concept for real estate investors, but it’s something savvy businesses have been doing for a while.

Your customer plan details your process or what you do to keep those leads. The goal should be to have a repeatable process for nurturing the people that come into your business as leads.

What’s the Difference Between a Marketing Plan and a Customer Plan?

One of the first things you probably learned when you started your investing business was that your #1 job is marketing. You won’t be in business very long if you don’t have a steady stream of leads coming in the door. There are a lot of things you can put

Simply put, a marketing plan is used to get leads. It’s used to attract motivated sellers.

off but marketing isn’t one of them. In order to effectively market your real estate business so that you always have leads, you must have a marketing plan. Once you have implemented your marketing plan, it’s time to move on to your customer plan.

Let’s Look At Your Marketing Plan

A customer plan is a document that you create for your specific business. The customer plan for a real estate business would look much different than one a doctor created for their medical practice. If you look at most businesses, they spend a lot of time writing business plans and marketing plans that attract customers. However, almost no one has a plan for keeping those customers (AKA motivated sellers) once you have gotten them to call you. Real estate is no different from any other business; it’s all about the customer. In our business they just happen to be folks that want or need to sell a property. Your customer plan should be a detailed document that outlines everything needed to create a remarkable customer experience. This is the time for innovation; the time to think outside the box. If you really want to be the standout company in your marketplace, you need to find a way to reinvent the way you do business and deliver that exceptional customer experience. Once you have created your customer plan, it also serves as a roadmap for making your company the absolute best company in your market.

Companies that Got it Right When you talk about companies that disrupted their markets, the first two companies that immediately come to mind are Uber and Airbnb. These companies “reimagined” the taxi business and the hotel business. Uber changed the model of taxi business forever. People everywhere like riding in a regular automobile much more than a stinky taxi. Airbnb is another company that completely changed the customer experience. They reinvented the way customers choose accommodations when they travel. They are definitely giving hotels a run for their money. What about cameras and voice recorders? Smart phones have pretty much replaced the need for both of these devices. They forever changed the way we take pictures on the go. When I think back to the company that changed the way real estate commissions were traditionally paid, RE/MAX was

responsible for that major change. Agents no longer had to share their commissions with the broker/office. If you are a RE/MAX agent, you pay a fee for everything; office space, copies etc. but you don’t share your commission. They reimagined the way Realtors get paid. So the next question is …. how can you create a customer experience that is so different than what people are used to that you become “the one” they all want to work with?

It All Starts with the Customer The first step is to know your potential customers. Don’t worry about your competition; worry about your customers. Once you know who your ideal customer is, then it’s time to create the best customer experience possible. Focus on creating the experience and the rest will take care of itself. Of course ultimately this is about getting the deal. But more than that,

So the next question is … how can you create a customer experience that is so different than what people are used to that you become “the one” they all want to work with? it’s about creating raving fans that result in referrals, testimonials and repeat business.

Nurturing Your Leads It’s easier (and cheaper) to nurture a lead than get another one. That’s a fact. Now don’t mistake this for trying to make a deal work that really isn’t a deal. That’s not what I’m talking about. This is about creating an experience for the seller at every touch point that is remarkable. bigger.

This is a very basic overview of the way a real estate deal goes from start to finish.

Let’s start with #1 which is lead generation and look at how you might reinvent the direct mail process. If everyone is sending the same direct mail pieces; letters and postcards, what can you do differently? How about sending out a newsletter with helpful homeowner tips as your first mail piece? Instead of starting with a letter or postcard that says “I want to buy your house”, you begin your relationship with “Hi I’m Sharon, and I have some helpful tips for you today”. The point is to make a different first impression than everyone else. Think of it this way; send the sellers something they will enjoy reading and in the process they will be introduced to you as a person rather than a business that wants something from them (their house). By doing this, over time you become the trusted resource in your market. At the bottom of your newsletter let them know that you buy houses and share your contact information. Taking this thought one step further, why not replace one letter or postcard every quarter with something that would be useful to the sellers like a quarterly newsletter or market update? Information to create these information pieces is readily available on the internet, so it’s really pretty easy. Doesn’t that make a whole different impression than a “we buy houses” letter or a postcard that’s all about you and your company? You bet it does.

1. You spend a lot of time and money generating leads 2. Your marketing results in the seller contacting you about the property 3. At some point you will have a phone conversation with the seller 4. The next step is to look at the property if the initial screening call went well 5. You inspect the property and decide whether or not to make an offer on the property 6. After negotiations that offer is accepted or rejected 7. If the offer is accepted you will proceed to the closing/settlement (and get a testimonial) If you look at the process it’s all pretty mundane. Ask yourself this; looking at these steps, is there anything there that would create a remarkable customer experience? I don’t think so. So let me ask you this: • If nothing were off limits, what could you do? • What would you change? • Is there a way to “reinvent” the way this process evolves? • Where can you innovate?

Final Tips Let’s Do a Little Brainstorming Here I would like to challenge you to look at each one of those steps in the average real estate deal and think of a way you can “reimagine” the way you do business. Find ways that you can be remarkable in this crowded marketplace of real estate investing. Sharon Vornholt Louisville Gals Real Estate Blog

Sharon Vornholt Sharon Vornholt is the owner of Innovative Property Solutions, LLC in Louisville, KY. Sharon owned and operated a successful home inspection company for 17 years. She began investing in real estate in 1998 and became a full time real estate investor in January of 2008. Sharon specializes in wholesaling, and is also an experienced landlord and rehabber. In addition, Sharon is an internet marketer and also writes articles for several national real estate sites. Sharon is the author of a popular real estate blog called the “Louisville Gals Real Estate Blog”. For your FREE REPORT “Probates and Absentee Owners: Your Fast Track to Real Estate Riches”, stop by her blog at: http://LouisvilleGalsRealEstateBlog.com. FREE BRAND ASSESSMENT AT https://louisvillegalsrealestateblog.com/brandassessment

8 Simple Steps To Riches In Real Estate Or In Any Other Field, For That Matter By Reggie Brooks

efore I got involved with real estate I tried various other potential moneymaking ventures. I created a company called Advanced Video Productions, and spent the first 4 weeks designing the all important ‘logo’. I might have thought that my income was totally dependent on a well designed, slick logo. I hadn’t learned anything about time management yet. I created another company that sold satellite systems. This was way back when satellite dishes were huge. They could have been mistaken for UFO’s. My success? I sold 1 satellite system, period. And that one system was sold to a friend. I hadn’t learned anything about marketing. Another time, I got involved with a Multi Level Marketing group and ended up with a garage full of water filters. Well, it really seemed like a good idea at the time….. Through the many successes and failures that I’ve either experienced

over the years or witnessed others experience, I’ve identified 8 steps you can take that can put you on the fast track to wealth. These are simple, powerful steps that really work!!

The 3 Cornerstones Of Success I’ve taken a lot of seminars and classes over the years, and I’ve learned that personal and financial growth requires an investment. You must be willing to invest your money and your time. Then you must make a commitment to discipline yourself. What good is having a superior knowledge of creative real estate if you don’t discipline yourself to use it? Many successful real estate investors have invested many thousands of dollars in their creative real estate education. Their libraries are bulging with books, tapes, CD’s, DVD’s, and any other form of media necessary to put moneymaking

techniques into their heads. They understand the power of “The 3 Cornerstones Of Success”. The 3 Cornerstones Of Success are like a 3 legged stool. As long as there are 3 legs, the stool will support your weight. However, if you loose just 1 of those 3 legs, you’ll crash to the floor. This is a perfect parallel to the 3 Cornerstones Of Success.

Continued Education Discipline Productive Action on a Daily Basis

1. The 1st Cornerstone Of Success is continued education.

generate the discipline that you need. Use it like a magic carpet to fly above the pitfalls to success.

As successful investors, we make our money buying distressed property from motivated owners. In order to do that, we must learn how to creatively solve the problems that owners have with their properties. None of us were born with this creative knowledge. We have to invest our money and our time into our education, and we have to learn the smart, moneymaking principles and techniques. Then, we use these smart, moneymaking principles and techniques as tools to creatively structure winwin deals. This is why we continue to read books, listen to tapes, and take classes. This brings us to the 2nd Cornerstone Of Success.

3. The 3rd cornerstone is productive action on a daily basis.

2. The 2nd Cornerstone Of Success is discipline. You must discipline yourself to use the smart, moneymaking principles and techniques that you’ve learned. This doesn’t necessarily mean that you have to spend 15 hours each day to work your business. It could mean that you simply discipline yourself to write that offer, or send that letter out, or talk to that owner or neighbor, or anything else that you been procrastinating about. So much of the time we’re so close to success, but we give up just before we achieve it. Most of the time we give up because it is to scary or to painful to proceed on. Anticipating an owner who says no instead of yes can be both scary and painful. Dig down as deep as you need to and find that spark of passion that you can use to

You must continue to learn, you must discipline yourself to use what you’ve learned, and now you must put it to work on a daily basis. It may be that the productive action of the day may only take 15 or 20 minutes. Success comes to the person who has made him/herself worthy of the success that they seek. And you make yourself worthy by following the 3 Cornerstones Of Success. Then, you’re prepared whenever opportunity comes along. People sometimes ask me, “Come on, Reggie, tell me”. “What’s the secret to being successful in real estate”? There is no one individual ‘secret’ that will make you an instant millionaire in real estate. It’s more of a matter of doing a whole lot of little things correctly that empowers us to

create a tremendous wealth. Doing smart things systematically toward your goal every day will breathe life into the 3 Cornerstones Of Success. There is nothing on this earth that can stop you if you simply follow the 3 Cornerstones Of Success. Here are a few other ideas that can help you to achieve your own level of success.

4. Don’t Take Your Financial Advice From Broke People When I first got involved in real estate, I let everyone know that I was launching into a new career. I told them that I was studying courses on how to perform creative real estate deals that would make me rich. I told them I was learning about no money down deals, how to get owner financing, how to rehab to increase profits, and so much more. I was so excited about my new real estate career that I had real trouble shutting up about it. As a matter of fact, I think that I got a little cocky. I’d tell anyone who would listen to me about the wealth that I was going to build in real estate.

I finally realized that I was sharing my excitement with the wrong people. I was sharing my dreams with people who had no respect for them. They would find ways to tell me that my dreams would never work. “There’s no such thing as a winwin deal”. “When someone wins, someone else has to loose.” They also said things like, “You can’t do no money down deals because there’s got to be some money in the deal someplace”. They never stopped to think that the money doesn’t have to come from you. It can come from the seller, the lender, the realtor, from private sources, or a great number of other places. It doesn’t have to come from your pocket. This is when I realized just how important it is to share your ideas with the right people, and not the wrong people. Share your ideas with other investors or students who are of like mind either doing deals and making money or learning and growing in creative real estate education. If you share your dreams with people who are not educated or not experienced in creative real estate techniques, you leave yourself wide open for opinions. When you get opinions from people that you

respect, you have a tendency to believe them. This can be especially hazardous for new investors. Always ask yourself the question, “By what authority does this person give me this advice. Has he/she been trained in this field? Has he/she worked in this field and made money?” If the answers are no, don’t listen to him/her. No matter how much you love or respect the person, you have to protect your financial future from well meaning people who are not qualified to give you financial guidance. If you have a new born baby, you wouldn’t dare even think about exposing that baby to the harsh elements that could make your baby sick. You wouldn’t leave your new born baby outside in the rain or the snow. You wouldn’t leave your baby in the heat of the sun, or with unsavory characters as baby sitters. Treat your new real estate business just as you would your new born baby. Expose your baby to the people who can help it grow big and strong, but keep it away from those who will do it harm. And the difficult part is that for the most part, our uninformed friends don’t mean any harm. But if you let their unfounded opinions influence you, it can be fatal to your business.

Always ask yourself the question,“By what authority does this person give me this advice. Has he/she been trained in this field? Has he/she worked in this field and made money?” If the answers are no, don’t listen to him/her. If you will continue to learn the right things the things that create winwin situations between you and the owner the things that make you money, now you’re ready for the next lesson.

5. Don’t Get Greedy My friend and mentor, Dr. Albert Lowry tells his students that it’s OK to be a bit of a pig (I call it good negotiating). It’s OK to structure a deal where you make a lot of money. But don’t be a hog. You can blow a good deal by trying to hog all the profits. Don’t forget about the seller’s needs. Dr. Lowry says, “Pigs get rich, but hogs get slaughtered”. Makes sense, doesn’t it? Keep this phrase in mind. We’re going to talk about a principle that was so important in changing my life. As we discuss this principle, keep in mind that you can get rich faster by doing a lot of $20K to $30K deals than holding out for that big $100,000 deal. So, without further ado, I present to you “The Win Principle”. Caution: This principle works best when used with The 3 Cornerstones Of Success, which we talked about earlier. Here’s how it works:

The “WIN” Principle stands for “What’s Important Now”. Once you’ve educated yourself in creatively investing in real estate, you’ll know what you should be doing at any given time. Whether it’s using what you’ve already learned, or, if you’re a little short on knowledge, maybe taking in a seminar, workshop, bootcamp, or listening to books and tapes. It may be that you need to take a break, or the rest of the day off, or even a vacation. Whatever it may be you know deep inside exactly what you should be doing at any particular time. If you will discipline yourself to do What’s Important Now, you WILL accomplish your financial goals. What do you want? Do you want to be rich?? You can be rich!! If you will diligently exercise the 2 principles that I’ve outlined above, you will accomplish your financial goals!!! Does it sound easy? It does to me. I think it’s a simple thing to do, but it’s certainly not an easy thing to do.

6. Failing To Screen Your Sellers As investors, we make our money when we buy property from motivated sellers. I had to find that out the hard way. Very early in my career I found an little old lady that lived in a huge old house in Hollywood, California. Her name was Alice Jordan and she was part of a big mailing campaign that I was working at the time. When she responded to one of my letters, it felt like my heart was going to jump out of my chest an on to the floor!! My palms were sweaty, and my voice trembled. She said that she wanted to sell her house!! We immediately made an appointment to meet at her house the very next day. It was sheer agony having to wait until the next day to meet with the lady in the big house. The thoughts running through my head were non stop! Will she contact someone else? Will someone else contact her? Maybe a family member. What if she changes her mind? Am I really ready

for this? This is a huge step! What if it doesn’t work? What if I fail? I don’t want to loose any money. Does any of this sound familiar to you? I think we all suffer with Uncontrollable Thought Syndrome. There’s nothing like doing a good deal and making yourself $20,000 to $40,000 to make all those negative thoughts disappear. You might still have those uncontrollable thoughts running through your head, but they’ll be a little different. Let’s see, I wonder if we should go to the Bahamas, or if we should go to Hawaii? Should I go for the Mercedes, or should I go for the BMW? Back to the little old lady. For three weeks, we went back and forth. Every time I thought we were close, she’d throw some garbage into our deal that would bring negotiations to a halt. Then I’d call her after a few days, we’d reach what I thought was an agreement, and we would resume. This would happen over and over. You’d think I’d have gotten a clue about this one, but I didn’t. I happened to be talking with a friend who was a fellow investor, and I mentioned Ms. Jordan, the lady that I was dealing with, and how frustrated I’d become. He looked at me with a little sly smile on his face. He said, “You mean Alice Jordan”? I said yes.

If you will discipline yourself to do What’s Important Now, you WILL accomplish your financial goals.

Needless to say, I was stunned. The uncontrollable thoughts started again. I quickly took control by feebly asking, “Uh, how do you know Ms. Jordan”? His answer cut like a knife. “Everybody knows old Alice. She gets lonely and calls on someone’s newspaper ad or direct mail piece. That’s how she entertains herself. She never leaves the house.’ I was crushed. I was merely an old lady’s entertainment. Everyone else knew about Ms. Jordan. I didn’t. My friend even called her by her first name!! That’s when I learned how important it is not to waste time on sellers that are not motivated. By the time you make an offer based on your profit criteria and you get a counter offer back from the seller, you’ll know whether you have a motivated seller or not.

7. Lack Of Focus There are so many different ways to make money in real estate. You can buy, fix up and sell. You can buy

and hold for cash flow. You can wholesale to other investors. Come to think of it, you can even make money without ever owning the real estate. You can buy mortgages, and you can lend money and charge hefty interest rates. And this is just to name a few. It’s easy to see how a new investor can jump from one strategy to another. A new investor is usually excited about the prospect of getting money worries out of the way, and as a result they’re usually more than just a little impatient. The expectations are high, but the patience is low. Success in real estate investing is directly dependent on your ability to take action, analyze your results, make your adjustments and take action again. It’s a sweet little cycle that you use to get rich. A success cycle, if you will. The best way to capitalize on this cycle is to focus on a system that is simple and easy to work, like Creating Wealth With Abandoned Properties. As you begin to work your system of choice, make sure you continue to learn from your

results while you fine tune and tweak your business. This is how you become a master of your investment system. This is how you get RICH!! You must stay focused on your goals. I read a book that my wife gave me when we first got together, called the Peak To Peak Principle. This was another one of those life changing experiences. I say experience because that’s what it was. It wasn’t just ‘reading a book’. It was the experience of learning a principle that could help make me rich. Here’s how the Peak To Peak Principle works. Visualize yourself as a mountain climber doing what you do climbing a mountain. If your goal is to reach the top of this mountain, then you’ll do well to keep your focus on your goal the peak of this mountain. However, if your goal is to conquer other peaks then, before you reach this peak, you must shift your focus to the next peak. If you don’t shift your focus, you allow the first peak that you reach to become a plateau. It will take a lot of energy to get your momentum moving in the right direction again. When you relate this principle to your real estate business, your plateau becomes a comfy little haven where you’ll find yourself sitting and relaxing. You might eat a sandwich, read a book, or listen to the radio. You might be so comfortable that you decide to spend the night, or the week, or the month, or the rest of your life. Since you have your momentum going in the right direction, go with the flow. If you apply the Peak To Peak Principle to your real estate business, you can get to your goals a lot faster.

I THINK WE’VE JUST FOUND THE SECRET TO GETTING RICH!! It’s a matter of learning these and other ‘wealthbuilding’ principles and using discipline to operate my real estate business under those principles. For the first time, I can see the how of getting rich! Having the scientific type mind that I have, that just made this revelation even more powerful. I can actually see in my mind’s eye exactly how I’m going to get rich!! I floated around on cloud 9 for a long time after that. As a matter of fact, I’ve never come down, and I never will. It’s almost like having a ‘secret weapon’ that most other investor don’t know much about. Learning and using the wealthbuilding principles can give you the edge over your competitors.

was never meant to scare us into non action. Here’s an interesting idea. I believe that there is a purpose for every living creature on earth. Beavers build dams, humans solve problems. If you take a careful look around, you’ll see a whole lot of stuff that was created by the human species. If you look deeper, you’ll find that the purpose of each one of these inventions was to solve a problem. It has been said that we learn better by doing, rather than by reading. In other words, at some point, you’re going to have to get out there and get your feet wet you’re going to have to get started. I know, I know… It’s scary. Whenever you launch into something so big and

8. Managing Your Fears Every human being on the face of the planet has experienced fear in some form or another. I’d even be willing to bet you that every animal, insect, rodent, and every winged creature as well, has experienced fear. Fear definitely has a useful place in our lives. It’s purpose is as a early warning system. To alert us about possible dangers so that we can modify our path and create a solution to eliminate the danger. Fear

significant that it can change your life, you’re going to get a little scared. Here’s a good way to handle your fears: This solution to handling your fears is so simple that even I was able to master it. First of all, arm yourself

with an abundance of knowledge about the situation. Be careful not to overanalyze the situation. You only need enough facts to make an intelligent decision. If you have a fear of writing your first offer, you may have to pick up a book, or take a seminar. You might have to make a bunch of copies and practice writing offers. Do what ever you have to do in order to arm yourself with the knowledge that you need. Then, keeping the WIN principle in mind, you simply take action. Isn’t that simple? It really is. The one antidote for fear is action. Intelligent, systematic action will not only make fear disappear, it can also make you rich. Sometimes we have a certain type of fear that robs us of an important part of our growth. We’re afraid of making mistakes. Even though we’ve only been involved in real estate for 5 minutes, we have this crazy notion that we shouldn’t make mistakes. After all, we did take that 1 ½ hour seminar last year, we should be rich by now. If you have a problem admitting and accepting mistakes, you’re missing out on one of the greatest tools that you could have in the creation of wealth.

I was in my early 20’s when a 17 year old kid taught me something that will be with me for the rest of my life. He taught me that mistakes are our friends. He said that every mistake that we make has within it a lesson for us to learn. Some people are so busy trying not to make mistakes that they totally miss the lessons in the mistakes that they do make. By learning these lessons, then making the correct adjustment in our paths to success we can get to our goals at a very fast rate of speed. What if you were able to look into the future. You might see that, in order for you to become a millionaire, it will take you making 175 mistakes, learning the lessons in each of those mistakes, applying those lessons to your business, and moving on to the next mistake. You might find yourself jumping out of bed and hurrying to meet the day! You can’t wait to make the next series of mistakes, because you know that at the end of your mistake making, lesson learning day, you’ll

be closer to your goals! If you only made 5 mistakes yesterday, you’re going to kick it up today. You’ll make 10 mistakes today!! And, by the time you learn your lessons and apply the changes, you’ll be surprised at how quickly you can be very far along in reaching your goals.

You’re A Winner Read On, And I’ll Prove It To You! Always remember the winner that you are! You came into this world to create. So, create!! You have an ability within you to create whatever solution you need to overcome whatever problem that you think is standing in your way. If you will follow the principles that I’ve outlined in this article, you can do much to accomplish every one of your financial goals. You are a winner. Remember? Three and a half million sperm chasing one egg. You won! You’re here! That’s evidence of the winner in you. Peace and prosperity to you and your family.

Always remember the winner that you are! You came into this world to create. So, create!! You have an ability within you to create whatever solution you need to overcome whatever problem that you think is standing in your way. Reggie Brooks

Meet Reggie Brooks Reggie Brooks, is an international speaker, author and educator, dedicated to inspiring others to achieve personal success through real estate investment. He is also the #1 Vacant, Abandoned & Distressed Property Specialist in North America. Having risen above a life of poverty, he has achieved what many people consider to be impossible. He went from making $36,000 per year at the local telephone company, to making over $40,000 per month in his real estate business. Today, Reggie delivers his personal philosophies for success at major business venues and expositions throughout the United States. Reggie attributes his success to faith, dedication to success, and to the invaluable coaches he has had along the way.

7 Personal Finance Questions to Ask Yourself Before Getting a Mortgage Dr. Teresa R. Martin, Esq.

re you ready for a mortgage? It’s a big step that requires careful planning. A mortgage will affect your financial future for years to come.

"A mortgage is a responsibility that affects multiple areas of your financial life. Before you buy a house, consider how your current financial situation will be affected and plan for emergencies."

Before you sign that mortgage, consider these finance questions: 1. What is your credit score? Credit scores affect mortgage rates.

• Before buying a house, check your credit score. Should you raise your score to get a better interest rate? In general, high scores with no late payments during the last three years are enough to get good rates.

others to complete tasks. House maintenance can involve expensive and ongoing projects. Are you ready to pay for these costs?

2. Are you capable of handling maintenance costs? It’s important to consider the cost of maintenance before buying a house.

• The mortgage is only one part of the total cost of owning a house. Maintenance is another important piece. Will you be able to pay for a new roof or air conditioning system when the current ones wear out?

3. How secure is your job? Before signing a loan, evaluate your job security. Will the work last? How will you handle changes?

• Evaluating your job future is part of planning for a home purchase.

• Does your monthly budget include enough savings for • Consider emergency funds and savings in your plan. If

maintenance?

your job situation changes, will you be able to continue making monthly mortgage payments?

• It’s also important to consider DIY projects and hiring

condominium association fees, but are you ready to pay homeowners’ fees? 6. Do you have an emergency fund? Emergencies can vary from broken dryers to flooded patios, so you need to be ready for anything. Is your emergency fund big enough to handle common, unplanned expenses?

• Emergency funds are a better option than credit cards or loans. Putting enough money aside can help you avoid new debt. 4. Do you have the necessary financial paperwork? Mortgage applications require a great amount of paperwork. Lenders can ask for old tax statements, check stubs, savings account statements, and other information.

7. Are you applying for other credit? Mortgage lenders can see applications for other types of loans on your credit report.

• Applying for other types of credit while trying to get a • If you have a high credit score, you may get a no

mortgage can hurt your loan. Mortgage companies view these applications as risks, so it’s better to wait before trying to get another credit card.

documentation loan.

• It’s rare to get a no documentation loan, so it’s better to • Applications for new credit lower your credit score and

be prepared by checking your files and collecting the financial papers you may need.

affect interest rates.

5. Did you calculate the hidden expenses of owning a home? Home ownership comes with multiple expenses that go beyond appraisal fees, property taxes, mortgage closing costs, and insurance.

A mortgage is a responsibility that affects multiple areas of your financial life. Before you buy a house, consider how your current financial situation will be affected and plan for emergencies.

• One of the hidden expenses of moving to a home is more

Meet Dr. Teresa R. Martin, Esq.

bills. If you’re used to renting, then home ownership can change your monthly bills by adding new ones. You’ll add trash collection, water, recycling and sewage in most locations to the expense list.

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

• Home insurance is higher than renter’s insurance. In addition, older homes cost more.

• Homeowners' association fees are becoming more common in neighborhoods. You may be aware of

What is Like-Kind Property? By Rusty Tweed

any of the people that come into my office have a huge misconception of what types of properties they can exchange into. Most people I’m dealing with are selling multifamily rentals, for example, a fourplex or 6 unit apartment building. They think that the IRS definition of “likekind property” is another fourplex or 6unit building. The truth is the IRS considers any deeded property that you don’t live in and is purchased for investment purposes qualifies as “likekind.” For example, if you sell a 6unit building, you can buy a piece of raw land, or several singlefamily residences or a small commercial building. They all are considered “likekind” under the IRS guidelines. The only property that wouldn’t qualify would be a home that you immediately moved into and used as your primary residence. It can only be an investment property, not your home. The replacement property must be valued as equal or greater to the property you sold. For example, if you sold a building for $800,000, you would have to buy one or more properties with a total value of $800,000 or greater. Another rule you must follow is that any debt on your property has to be replaced dollar for dollar as well. So if your $800,000 had a $400,000 mortgage on it, the

replacement property(s) would have to have at least $400,000 of debt on it or greater. Another example would be selling an $800,000 property with no debt and going into a larger property using all $800,000 of equity but buying a $1,600,000 property that has 50% loan to value (LTV) or $800,000 of debt. You can always “trade up” so this exchange would qualify as well. These are very simple examples, everybody has details that must be taken into account, so be sure and discuss your particular exchange with a tax professional to make sure you’re following all the rules.

The truth is the IRS considers any deeded property that you don’t live in and is purchased for investment purposes qualifies as “likekind.”

The Nerdy Side of Credit Restoration By Bruce Kellogg and Linda Pliagas

itting down with Eric Counts of CreditNerds.com can be quite an interesting experience. I recently had the chance to interview him and what was supposed to be a few quick questions stretched well into more than an hour of great conversation. Now, obviously, credit is an extremely powerful financial tool when dealing with one’s finances and investments, but the level of knowledge Mr. Counts held was beyond anything you’ll find in a Google search or at a basic credit seminar. It quickly became evident why he is an accepted expert witness in legal cases involving credit reporting and a soughtafter speaker for financial events across the country. However, the interesting part of the story wasn’t as much about what this young CEO has become since founding his company in 2008, but instead the path his life followed in creating what he believes to be the only full service company that provides credit repair 100% free of charge. And yes... I had to ask him to

repeat that as well. He assured me that CreditNerds.com charges zero fees for their full service credit repair program. The only requirement is to keep an active monitoring account so they can access the credit report as needed. Needless to say, he has caused quite a disruption in an industry known for bad actors and illegal upfront charges.

people don’t even have one good parent, he considers himself extremely blessed to have been raised by four amazing people individuals who put their differences aside and focused on providing their children the best life possible.. He reminisces that as a child growing up his parents and step parents were extremely loving and supersupportive of him, which fueled his confidence. "I believed that I could early on. I always knew I would succeed." As a child, he was always driven to succeed having earned black belts in two styles of martial arts, two state championship titles, as well as competing at the state level in track. But it wasn’t just physical activities, he was also an allstate choir member, played the trumpet in band, marked perfect scores on the ACT in English and Reading, and was accepted to the Arkansas School for Advanced Math and Sciences.

So Let’s Meet Eric Eric Counts was raised most of his young life in a mobile home in rural Arkansas. His humble and country family life gave him a strong foundation, one overflowing with the most richly possession possible: love. "I was blessed to have four sets of incredible parents," Counts admits and adds: "I really had four great people raise me." Counts credits much of his success to the guidance of his four great parents. He stresses that in a world where many

The Blessings and SetBacks After high school, Eric’s academic excellence had earned him a fullride scholarship to college. But that’s where this story takes a turn. Within two short semesters he had dropped out. Within another year he was married and had a child. He was broke, unemployed, and faced with supporting a new family. It didn’t take long to realize that a black belt and a good time in the 3200m race doesn’t get you very far in the real world. Like many others like him, he bounced from job to job. Door to door sales, telemarketing, waiting tables; or as he call them, “prerequisites for success”. Counts recalls this as one of the most difficult times in his life. "We didn't' have any money. I was so embarrassed. I had just come through

high school and college knowing I was going to be Somebody, and now here I was, broke." During this challenging time in the start of the young family's life, Counts attributes the support of his wife, Stephanie, whom he met in the 5th grade, with helping him through this stressful time and immense pressure as a young husband and father. The high expectations Counts set on in having a lucrative career began to look like a false promise, until a fateful day happened when he took a sales job in the credit industry. He learned quickly and started selling credit repair services to as many people as he could. Unfortunately, within about 3 months he realized the company he worked for was not providing their services in a legal, moral, and ethical manner. Complaints started coming quickly.

Mr. Counts then did what truly displays his character. He contacted the people he had sold the service to and apologized. He told me he couldn’t give them refunds because he only earned a small commission, but what he could do was attempt to give them the service they had originally wanted. He started reading, learning, seeking knowledge about the industry. Soon, people were calling and asking about the “guy fixing credit”. He decided to open his own company, and within three weeks his wife had to quit her job as a waitress because they simply couldn’t keep up with the demand. Fast forward 12 years, and they now operate one of the most effective and efficient credit repair companies in the country. They have clients and partners in all 50 states, Eric is an instructor for a national real estate investment education company, and is on the board of NACSO, the National Association of Credit Services Organizations. He has been interviewed or published by USA Today, CNN, Money Magazine, and The Wall Street Journal, and of course here in Realty411.

Now married for 18 years and with two beautiful children, Counts says that Stephanie was his biggest champion during his difficult days. Plus, she still helps him enjoy life more with her soothing approach to life: "I don't have to succeed every single time in order for her to see me as a success." In fact, when things go wrong now, like they do in every business, Stephanie is always the first one to point out: "Don't worry, we'll get there next time!" Counts adds: "If not for my wife, we would not be where we are. She is always the one that says, 'Keep your head up, stay the course, and don't give up'." He also credits the Credit Nerds' staff for the company's incredible growth, and an amazing business mentor, who he says helped him reach personal and professional goals he never thought possible.

“Credit is a tool, not a trophy. If you want it to be effective, you have to USE it properly,” says Counts..

Organization Their company, CreditNerds.com, is located in Paragould, Arkansas, a town of under 30,000 that sits about an hour’s drive outside of Memphis, Tennessee. Eric and his wife have 13 employees that they say are the true lifeblood of their company. Striving to be a quality employer, they offer a starting wage that is more than twice the state’s minimum wage, and as a result, all of their employees tend to be longterm, the shortest being three years, and the longest being their Director of Operations, Karen Dillon, who has been with them nearly eight years now. As real estate investors, we all know that credit is one of the pillars carrying the foundation for success.

"I believed that I could early on. I always knew I would succeed." With this in mind, Counts stresses to his clients the importance of utilizing credit effectively: “Credit is for a PURPOSE, not a purchase. If you are financing something that is not creating you any additional income, you have to consider the consequences of inefficient debt.” If anyone you know is facing credit issues, be sure to send them to an honest, ethical, and FREE credit repair service. Signing up is simple and can be completed online at their website www.CreditNerds.com. There are even videos along the way that walk you right through the process. Be sure to review the world of Eric Counts on www.CreditNerds.com Be sure to visit to see how they are changing the lives of thousands of families and making the world a little better one credit report at a time.

are some important words to consider when creating a company, not just a JOB. 1. Create 2. Build 3. Replicate 4. Replace The key factor to building a business is being able to work on your business, not IN your business, says Eric Counts, CEO of CreditNerds.com. "It's important to follow systems

and processes. It do you not systematize your company, then you still have a JOB. And, if you still have a JOB, you are not a business owner, you are selfemployed." Counts also counsels other start ups and wouldbe entrepreneurs to share their knowledge and provide value to others as a way of building their business and reputation. Be sure to ask yourself what you can provide to others of value, at no cost. Not only will this help others to improve their lives, but it will help you be seen as a leader in your industry.

Eric's 4 Steps to Entrepreneurship Ready to build that dream business, just like Eric Counts did with CreditNerds.com? Here

Eric Counts enjoys spending all his free time with his wife, Stephanie, and their two children.

Five Key Tips from CreditNerds.com Do you want a credit score that is over 800? It is possible, just follow Eric's top tips to see your FICO shoot though the roof! 1. Pay Bills On Time No way around this: Plain and simple. 2. Keep Credit Cards Active Especially those cards with a zero balance. 3. Keep Accounts as Long as Possible Show a stable and responsible history with debt. 4. Use Different Types of Credit Diversify your credit portfolio, i.e.: mortgages, credit cards, car notes, department stores, etc. 5. Only Apply When Needed Reserve the temptation to open up a new charge card unless you truly need it. .

Eric Counts share his passion for business with his partner and wife, Stephanie.

here are lots of ways to hold the Beneficial Interest in a Land Trust (i.e. individually, through another entity or via the Trustee of another trust). This article will concentrate on using a Limited Liability Company (LLC) to hold the Beneficial Interest in a Land Trust and the many benefits of this strategy. Just because you put your property into a Land Trust does not mean you have avoided all liabilities stemming from that property. The liability from property held in a Land Trust flows through to the Beneficiary of the Trust. This is why most real estate

investors (holding title to investment property in a Land Trust) make the Beneficiary of their Land Trust, an LLC. Linking the Land Trust with the LLC is a good structure that yields the privacy (of ownership) benefits from the Land Trust AND the asset protection benefits of the LLC. The basics of asset protection is rooted in privacy and the most inexpensive (and effective) way for real estate investors to obtain privacy is through the use of a Land Trust to hold title. Unlike all other forms of holding title, the Land Trust is NOT registered anywhere on planet Earth! This prevents everyone from

Using a Limited Liability Company

As The Beneficiary of Your Land Trust By Randy Hughes, Mr. Land Trust

“looking you up” via the internet to determine your assets (and your sue ability potential). Yes, most attorneys will try to determine your assets prior to suing you to make sure if they win their lawsuit against you, they will get paid (thus, your “sueability potential”). Not holding title to real estate in your name will help you avoid 90% of potential frivolous lawsuits. The remaining 10% of potential lawsuits can be effectively dealt with at the Beneficiary level with your LLC. However, many real estate investors are under the mistaken assumption that all LLC’s are the same when it comes to asset protection. THIS IS NOT TRUE! Singlemember LLC’s are particularly vulnerable to attack. Here is why. Real estate investors use LLC’s primarily because they seek the protection of a Charging Order in case of legal attack. A Charging Order is the remedy a creditor uses to place a judgment against a Limited Liability Company. A judge may award the creditor the rights of an assignee (distribution of profits) but not the membership interests of an assignee (ownership). The judgment creditor as assignee therefore cannot force distributions, maintain managerial rights, or exercise any measure of control over the Limited Liability Company. Additionally, the judgment creditor is obligated under IRS Revenue Ruling 77137 to report and pay taxes on their share of income regardless of whether such earnings are distributed or retained! The charging order protects LLC owners and investors (that were not involved in the litigation that produced the “assignment” to the creditor) from the creditors of a debtor owner.

In a Limited Liability Company owners are called "members" and a singlemember LLC has only one owner. The IRS disregards a single member LLC as a separate entity and looks to the singlemember as the responsible party. The courts also look to singlemembers as the liable party as did Colorado in the 2003 bankruptcy case of Ashley Albright wherein the court stated, "A charging order protects the autonomy of the original members and their ability to manage their own enterprise. In a singlemember entity, there are no nondebtor members to protect. The charging order limitation serves no purpose in a single member limited liability company, because there are no other parties' interests affected." [Ashley Albright, 291 B.R. 538 (Bkr. D Colo.2003)] The state of California agrees and determines each charging order not by state statute, but by court decision. Thus, owners of single member LLC's have no assurance of liability protection in most states. NOTE: Nevada and Wyoming, in particular, afford a singlemember

LLC the same charging order protection as a multimember LLC In addition to the standard type LLC that many real estate investors use to hold their Beneficial Interests, many investors use the Series LLC instead. While explaining the use and benefits of a Series LLC in this article is not possible due to space limitations, I encourage you to Google the Series LLC and find out all you can. So, why not use a Corporation as the Beneficiary to your Land Trust? Maybe you should. Many real estate investors that do a lot of “flipping” will make their “flipping corporation” the beneficiary of the Land Trust that holds property they want to fix and flip. The decision to use a Corporation or LLC as the beneficiary of your Land Trust is twofold. First, there is a tax consideration (you should consult your accountant for advice regarding this issue). Secondly, there is a statutory issue. Limited Liability Companies do NOT have to comply with the statutory requirement to maintain

management formalities in order to prevent third parties from “piercing their corporate vails” i.e., from holding their members liable for LLC negligence and other misconduct. In stark contrast, Corporations that want to avoid vail piercing must comply with extensive management formalities (annual corporate minutes, board meetings, etc.). To conclude, just because you put your property inside a Land Trust does not mean the beneficiary avoids liability. It is smart to hold the Beneficial Interest in a Land Trust via a Limited Liability Company. However, not all state’s LLC laws are created equal and some states have better laws than others. It can be argued that Nevada and Wyoming have the best singlemember LLC protection laws.

Randy Hughes, Mr. Land Trust If you want to learn more about the wonderful world of trusts, please go to: www.landtrustsmadesimple.com for more information. Or, if you would like to attend one of my FREE Land Trust Webinars, go to: www.landtrustwebinar.com/411 Also, feel free to call me with any questions. I actually answer my phone! 18666967347.

Hiring and Managing Property Managers

Organizations and Credentials There are two national organizations that are concerned with property management. The first is the Institute of Real Estate Management (IREM). This is an affiliate of the National Association of Realtors®, and it has national and international chapters. It emphasizes professionalism by presenting courses, holding conventions, and providing four credentials that require coursework, degrees of experience, and ethical practices. These credentials are:

By Bruce Kellogg

as your “turnkey” property manager become unsatisfactory? Are you weary of managing your properties by yourself? Did you inherit or purchase a property outside your area, and now need a manager for it? Then read on.

Certified Property Manager (CPM) Accredited Residential Manager (ARM) Accredited Commercial Manager (ACoM) Accredited Management Organization (AMO)

Searching for Candidates In large population areas there are usually many property managers, so you can begin with an internet search. Read the websites. Consider that the “minimallooking” websites might not be as equipped for the job, and possibly less professional. For the “polished” websites, the concern is that they might be marketingoriented but less substantial as managers. So, interview those thoroughly, as you should, anyway. . In smaller populations, there might be just one, two, or no fulltime property managers. Then the best approach is to ask local brokers who does property management in the area. Often it’s an agent who sells properties and manages parttime. Don’t be discouraged by this. Some of these are very good.

These are the “pro’s”, but that doesn’t mean the others are not. Less than 3% of managers have these credentials. But, if you find one, consider it a bonus. The second national organization with chapters is the National Association of Residential Property Managers

Interviewing Attached is an appendix of Leading Questions that need to be asked at the interview. They should be sent a couple days beforehand so the potential manager can prepare properly. This also projects a businesslike image of the investor to the manager. This list of questions is not exhaustive as these will lead into others as the interview progresses.

Managing the Managers Property managers typically charge 810% of collected rents. In other words, they don’t get paid during vacancies. This motivates them to get vacancies filled promptly. Some managers charge a “turnover” fee when they rerent a unit. This is fair because it’s extra work for them. Some investors see a challenge in grinding the manager on their pay. This is not an area to push the limits. Managers who feel wellpaid will manage better. All it takes is one $6,000 damaged unit to wipe out any perceived savings. So, pay your managers well. Another thing is to remember that the manager works

Bruce Kellogg has been a Realtor® and investor for 38 years. He has transacted about 800 properties in 12 California counties. These include 14 units, 5+ apartments, offices, mixeduse buildings, land, lots, mobile homes, cabins, and churches. Mr. Kellogg is a contributor and copy editor for two national real estate wealthbuilding magazines: Realty411, and REI Wealth Monthly. He is a recipient of an Albert Nelson Marquis Lifetime Achievement Award, listed in Who’s Who in America – 2019. He is available for consulting with syndication, turnkey, jointventure, and other property purchasers and note investors nationally, and other consulting assignments. Reach him at brucekellogg10@gmail.com, or (408) 4890131.

for you. Some managers are firm with their clients about what they will and won’t do. (They try to treat you like a tenant!) When they try this, be polite but assertive. THEY WORK FOR YOU! Talk to your manager about inspecting your unit(s) quarterly. They need to get inside, ask about needed repairs, and assess how the unit is being treated. You don’t want a $6,000 rehab in two years because the tenant paid well but ran the place down. If possible, try to visit the manager from time to time. Drive by the property first. Try to find a scraggly lawn, broken window, inoperable car, or something to ask the manager about when you get to their office. This “surprise audit” will help keep them from going slack handling your account. Remember, they work for you, and you are paying them well. A final issue is the report(s) you will receive monthly. Large management companies have professional reports which load easily into income taxpreparation software. Parttime managers usually do not. So, you will need to set up an EXCEL spreadsheet or purchase your own software and load it monthly. Do not wait for “tax time” for this. GOOD LUCK!

eal estate is the investment for intelligent investors today. But where do you find the time and great returns without sacrificing everything else you love doing?

The Status Quo & Investment ‑ Strategies that Fit

If this is you, your friends might be invested in REITs, real estate company stocks or even turnkey rental property programs. These can be great ways to diversify a portfolio. But stocks and REITs are really too volatile. Turnkey rentals are great. They provide automatic passive income and all the perks of direct investment in property. But is that the best you can do in returns and getting ahead?

You Can’t Afford Not to Demand More The problem is that the vast majority of individuals and couples are way behind on retirement savings and wealth building. The average 401(k) balance is only around $100,000. Recent data from the Federal Reserve shows that retirement savings and investment balances drop to almost half, by the time individuals are in retirement.

There appears to be nothing safer to invest in than real estate today. The returns are pretty attractive too. But when sophisticated investors and busy professionals look at how most others are Turnkey rentals are great. investing, it can They provide automatic passive income start to appear and all the perks of direct investment in property. challenging. But is that the best you can do in returns and getting ahead? If you are a doctor, lawyer, professor, or By Sensei Gilliland, Founder of Black Belt Investors even successful artist – you don’t want to ditch a great career you are passionate about to start from scratch learning about being a landlord. Handson fixing and flipping houses and managing your own rental properties can be great for those who don’t really love their jobs, or need a new source of income. But it’s a different story if you are already putting in 40 hours a week in something you like. Or, if you are already financially independent and don’t want to cramp your free lifestyle.

Real Estate Investing: How to Make 3 Times More Returns Than Your Friends

That means retirees are burning through half of their retirement funds within a year or two of exiting the workforce. Data 360 reports the average life expectancy in the United States is now just shy of 80 years old, and rising. The bottom line is that whether you have double the average savings or even eight times your salary saved today – it just isn’t going to be enough. Not by a long shot. So how do you get ahead?

"Handson fixing and flipping houses and managing your own rental properties can be great for those who don’t really love their jobs, or need a new source of income. But it’s a different story if you are already putting in 40 hours a week in something you like. Or, if you are already financially independent and don’t want to cramp your free lifestyle."

return way, to generate passive income in America’s hottest property markets. This service handles everything from sourcing properties, to acquisition, rehabbing and reselling for you. It’s ideal for those investors who lack time, experience and need to earn more than what they’re currently earning. It brings together all the best of the ease of passive income investing with high returns and faster profits of flipping houses. It’s the aggressive way to generate cash, faster. So how do the returns stack up? Imagine: Instead of investing in buying a single rental property that throws off $15,000 a year in positive cashflow, you used Remote Rehabs to flip houses for you. It conservatively takes an average of 90 days to fix and flip a house. So, if you bought and sold just four houses per year and made $15,000 each time, you’d be way ahead. You’d be pocketing $60,000 per year. While your friends are just getting $15,000 per year on buyand hold properties.

The Returns of Flipping Houses with the Ease of Passive Income Remote Rehabs is reopening its turnkey fix and flip investment program in Phoenix, Ariz. After being one of the first to kickstart the U.S. housing recovery, Phoenix is now set to lead in the second stage of growth with new jobs and rising property values. Check out what’s happening in Phoenix, Arizona at: www.RemoteRehabs.com The Remote Rehabs™ program offers a 100% handsfree, high

What would an extra $60,000 per year do for your lifestyle or retirement savings?

The Real Estate Cash Machine This system effectively gives real estate investors an automatic cash machine. Real estate education is good, rentals are good, and hands on rehabbing is rewarding. But if you want to diversify, really kick finances into high gear, get ahead, and don’t want to have to sweat or take the time out, check out Remote Rehabs. Then, once you have this real estate cash machine working for you, you can roll over some of that money to buyandhold properties for long term wealth building, or any other investment you are willing to take a shot at. Meet Sensei Gilliland

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

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Realty411 - Featuring Eric Counts, Credit Nerds

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Realty411 - Featuring Eric Counts, Credit Nerds