Realty411Vol.No2 PART 2

Realty411 Realty411 Print • Online • Network

www.realty411guide.com | Vol. 3 • No. 2 • 2010

A Resource Guide for Investors

Tips for Long-Distance

LANDLORDING

Turn-Key Rentals Around the Nation Cash Flow from the Comfort of Home

Mathew Owens, CPA, owner of

OCG PROPERTIES Buys & Rehabs

Rentals in Tennessee from Redondo Beach

Get the Deals DONE Learn Creative Real Estate Techniques Look Inside

FREE

Wealth Reports!

from Dave Lindahl, Dolf de Roos, Bruce Norris, Bill Gatten & more!

Celebrating the Largest Issue with More Pages & Opportunities than Ever!

photo by Sam Green

<< Table of Contents >> 7 Secrets from the Master!

Dave Lindahl shares his latest tips for Investing Success 9 No Drama in Dayton Triple Net Houses Helps Investors Profit without Issues 11 California Living with Tennessee Cash Flow Mathew Owens, CPA, owner of OCG Properties, explains why he loves to invest out of state 14 Beware of the Investment Vampires by RBS Homes 16 Dolf & Carter: A Mastermind with Arizona Investors 19 Enjoy a Tropical Paradise with Phenomenal Returns

Charity Walk and Gala 37 Join the Ultimate Bus Tour with MemphisInvest.com 39 Creative Financing Options with MMG Capital, LLC 40 Philbin Capital Discovers Deals in the Golden State 42 The Key to Success by Club Founder Sam Sadat

photo: Sam Green

In search of their latest gem in Nicaragua, Maverick Investor Group traveled the world 22 Investor Nation Shares their Blue-Chip Real Estate Strategy 25 Ginger Macia’s Three FREE Ways to find a Great Wholesale Deal 27 Creative Real Estate Techniques with Educator Bill Gatten 28 Matt Malouf’s 10 Weeks to Massive, Passive Cash Flow 30 A Visit with Sensei at his 12 Rounds Club 35 Bruce Norris discusses the “I Survived Real Estate 2010”

45 Buy Bigger and Better Deals

by Kathy Fettke 46 Alternative Economics™ Club Debuts in California 51 Stop the Gambling!

Mike Woo, a “Rich Dad, Poor Dad” protégé, advises clients 52 Is Your Mortgage Underwa-

ter? Perhaps a Short Pay Refinance is the Answer 55 Pay Off Your Rental House in Five Years with the Short Term Retirement Program 57 Who’s On Your Team?

Insights by 360 Investments

California Trust Deed Investing Not everyone has the time or expertise necessary to be full-time real estate investor. But thereâ&#x20AC;&#x2122;s still a way to take advantage of the unbelievable opportunity at hand. Welcome to the world of trust deed investing.

Savings accounts, CDs, and stocks have offered dismal returns over the past several years. The Norris Groupâ&#x20AC;&#x2122;s trust deed investments earn 9% return backed E\ GLVFRXQWHG FDVK Ă RZLQJ &DOLIRUQLD real estate.

of dollars every month and demand continues to increase. We scrutinize HYHU\ GHDO DQG HYHU\ ERUURZHU EHIRUH a trust deed is ever presented to our private money sources.

<RX FDQ IHHO JRRG NQRZLQJ \RXU Since 1997, our experienced team of resources are helping investors clean experts has originated California trust XS QHLJKERUKRRGV DQG FUHDWH MREV ZKLOH deed investments to private individuals, VLPXOWDQHRXVO\ FUHDWLQJ SURĂ&#x20AC;WV IRU ERWK FRUSRUDWLRQV QRQSURĂ&#x20AC;WV DQG UHWLUHPHQW VLGHV RI WKH HTXDWLRQ ,W¡V D ZLQ ZLQ accounts (including IRAs).

9LVLW RXU ZHE VLWH RU FDOO WRGD\ WR Ă&#x20AC;QG 2XU ODUJH QHWZRUN RI SURIHVVLRQDO RXW KRZ WR UHFHLYH RXU IUHH ERRN DQG UHDO HVWDWH LQYHVWRUV ERUURZ PLOOLRQV DVD on trust deed investing.

t 9% Return t 1st Trust Deeds Only t No Pooling t 8-Year Term t 60-65% LTV t Cash Flowing CA Properties t Ideal for Retirement Accounts (IRAs) t Experienced Team

Navigating the prof itable world of trust deed investing with the help of one of Californiaâ&#x20AC;&#x2122;s leading hard money lending companies.

Call or visit our website today for your Free Book and DVD.

w w w.TNGtrustdeeds.com 951.780. 5856

California Depar tment of Real Estate, Real Estate Broker Bruce Norris Financial Group Inc. DBA The Norris Group DRE License 01219911

Investors & Industry Leaders Share

an Evening of Glamour & Giving

The 3rd Annual “I Survived Real Estate 2010” will Raise Money for Breast Cancer Research & Unite the Nation’s VIPs to Discuss Investing

by Lori Peebles

for investor rights. For the past two years, he has united real estate giants to discuss oes “Shadow Inventory” really ex- the issues that matter, and most importantist? What is the state of the REO ly, to exchange ideas that can help investors market? These are just some of do what they do best: rebuild communities the crucial questions to be and rejuvenate econoBruce Norris with his wife & son. tackled by real estate inmies. dustry experts on the eve“The panel we’re ning of September 17. putting together can The Norris Group, speak about these issues headed by Bruce Norris, from several differa 30-year veteran known ent point of views and among investors as the hopefully provide us “Nostradamus” of Caliwith some new fornia real estate, is once insights movagain organizing their ani n g f o r w a r d , ” nual philanthropic event in Norris explains.

Orange County.

Some returning This black-tie affair guests, include: is one of the most fashJoseph Magdzionable tickets in town, iarz, 2011 presimixing charity, important dent for the Aptrend updates, education, praisal Institute; entertainment and industry networking. It Tommy Williams, 2008 president of is always a sold-out gala, one that attracts the National Auctioneers Association; and the Who’s Who of real estate.

Christopher Thornberg, principal of BeaWhen we attended last year, it was fasci- con Economics. nating to note that besides all the tuxedos, New guests are also being added. “We satin dresses and crème brulées on fine chi- are very excited to have Sean O’Toole na, some serious industry trends and alter- from Foreclosure Radar joining the panel native solutions were prethis year to add his Guests at the last year’s event. sented in just a few hours. data-driven and inIt was an evening of eduvestor-minded percation with a sophisticated, spective.” entertaining twist, much like For Norris, the “I the man behind the event.

Survived Real Es“The theme for ‘I Surtate” series is pervived Real Estate 2010’ sonal. This night is a will again focus on trends, way of honoring his solutions and have an added wife, his family, his focus on the state of REOs,” Norris says. community and profession.

“With constantly changing government In the last two years, the fundraiser has regulations, it’s been difficult for anyone in raised over $100,000 for the Susan G. the real estate business to build a sustain- Komen Foundation; these funds are used able business model.” for breast cancer research.

Norris, a 30-year veteran investor (from “My wife, Marsha, was diagnosed with rehabber to private lender) is a champion breast cancer more than 15 years ago. This

D

Realty411Guide.com

PAGE 35 • 2010

event honors her courageous effort to fight this disease and hopefully adds to the likelihood of someday finding a cure.”

In addition to raising breast cancer awareness and funds for research, as well as providing investors of all levels access to information, “I Survived Real Estate” has been instrumental in spotlighting the crucial role investors have in our nation’s economic infrastructure.

Norris explains: “This event gives a chance for investors to be seen in a different light. We all know investors are often seen as the “sharks” Tommy Williams of the real estate i n d u s t r y. We take this night to show other sectors that we, as investors, play a significant role in the solution side of the market.”

Norris knows firsthand that real estate investors take great risks in a volatile marketplace. “With greater acceptance, their ideas have a better chance at being heard and being implemented,” he says.

The charity event was designed to give everyone, regardless of personal income, an opportunity to participate.

“By joining our walk team and raising the money in their networks, attendees and sponsors can technically come free of charge,” Norris explains.

Sponsorship opportunities are also available. Benefits for advertisers include inclusion in all mailers to local, state and national government officials, SEO optimized website advertising, inclusion in mailers and flyers, plus event program and screen exposure. Each sponsor is also mentioned in video and radio segments that air before and after the event.

For more information, please visit online: www.ISurvived2010.com

reWEALTHmag.com

ALL ABOARD! for The Ultimate Cash Flow Buying Tour The Clothier family, from left to right: Chris, Brett, Kent and Kent Sr.

M

ainstream reporters who present real estate as doom and gloom surely haven’t been to Memphis. The city, known as the birthplace of rock ’n’ roll and the blues, is bustling with industry activity — and visitors aren’t just touring Graceland and Beale Street, they’re leaving as bona fide landlords.

Our editorial team was invited to attend The Ultimate Cash Flowing Buying Tour

by MemphisInvest.com, a boutique, Memphis-based brokerage catering to out-ofstate investors.

The company, which serves more than 200 clients and manages more than 650 investment properties for them, joined forces with the San Diego-based FortuneBuilders, Inc., (owned by Than Merrill and the “Flip This House” team) and together they organize one of the largest property buying events in the nation.

“You’ll never see anything quite like this,” promised Kent Clothier Sr. during our telephone conversation a few months ago. Kent Sr. is founder of MemphisInvest.com. He takes the helm of the 18-teammember operation, which is managed by his three sons, Kent, Chris and Brett.

In my six years as an out-of-state investor, I had never attended a property buying tour. Plus, I repeatedly heard about the benefits of the Memphis market from many sources. I thought, ‘What a perfect time to put on my reporter’s cap and go get the scoop.’

The Ultimate Cash Flow Buying Tour definitely stood up to its name. Just being in a room filled with investors from around the nation was electrifying. On the first day, the event was held at a ballroom in the Hilton Hotel, a circular 27-story glass beauty with

Realty411Guide.com

MemphisInvest.com & FortuneBuilders

Unite Investors from 18 States & 2 Countries

and Sell 29 Rental Homes in 2 Days!

by Linda Pliagas

outstanding views and plump pillows. Investors traveled from 18 states to attend, one couple arrived from Canada.

Most of the attendees were investors wanting to learn how to become MemphisInvest.com clients. Many were referrals from their existing client base, and some were repeat customers.

“Our average client buys four homes and refers us to all of their friends and family,” says Chris Clothier, director of sales and marketing.

MemphisInvest.com provides clients with an option of either buying a turn-key rental home or one that needs rehab. The company oversees the work for the investors. Each property has a separate quote for the renovation included in its proforma profile. If the rehab goes over budget, it comes out of the company’s pocket.

MemphisInvest.com caters to investors who are looking to buy in typical middleclass areas. The company says they stay away from crime-ridden pockets of the city, regardless of how the numbers may appear on paper.

“We only offer houses in the same areas PAGE 37 • 2010

where we have our own personal investments,” Chris says. The Clothiers personally own more than 100 rental homes in a handful of quality, long-term buy-and-hold areas of Memphis.

Typical home prices range from $34,000 to $85,000, rents average out be $850 per month. The city boasts high rents and low prices. But surprisingly, 48% of Memphis residents rent.

The Clothier family, who were formerly in the grocery business, moved to Tennessee because they saw such an opportunity for long-term real estate investing and monthly cash flow.

At the time, Kent Sr., Kent and Chris were scattered about, working in different real estate markets (Texas, Colorado and Florida). Memphis real estate brought the family together. It’s an additional perk for proud papa Clothier. “I’m the luckiest man in the world to have my sons working next to me,” Kent Sr. told the crowd that day.

On the first day of the tour, the investors gathered to get educated on the local market, meet the Clothier family, and mingle with JD Esajian from FortuneBuilders.

(The “Flip This House” team owns numerous rentals in the area.)

Continued on pg. 58 reWEALTHmag.com

Seeking Financing

for Your Next Deal?

This California-based private lending company offers creative financing solutions in all 50 states

M

MG Capital, LLC, an asset-based lending company, believes successful investors need to have skin in the game.

For that reason, they still invest company funds alongside those of their investors who supply the private money used in their operation.

Both company and client assets have grown significantly since their formation in 2007. In fact, the company’s principals have been responsible for the management of assets valued at more than $6 billion.

Although MMG Capital is only three years old, the principals have over 50 years of combined industry experience; their expertise includes banking, private equity transactions, development, secured lending, land acquisitions and sales.

From an investor’s point of view, one of the most impressive features of the company is that they lend on a national scale — most “hard money” firms keep close to home and rarely venture off into faraway markets.

“We’ll go to all 50 states,” says Chris Gleason, managing director of MMG Capital, LLC. He explains further, “There are a number of markets across the country where we’ve found the types of deals that we look for, and they tend to be in higher value areas with greater demand.”

Currently, the states where MMG is the most active are California, Florida, New York and Tennessee.

The firm’s success stems from their rigorous lending practices, Gleason admits that only one deal out of 75 makes sense for them to lend on. However, since they are an asset-based lender most investors have an easier time qualifying for an MMG loan

Interview and article

by Lori Peebles

We’re looking for current value as opposed to future value. Loans that need to be based on an ARV or higher appraisal value won’t typically work for an asset-based lender. However, we do have clients who are rehabbers who own other free-and-clear property, they then secure a line of credit with us for the purpose of purchase and rehabbing more property.

compared to a bank.

With MMG Capital, no income verification is needed nor is credit score or seaChris Gleason soning taken much into consideration.

The allure of their program Recently, our editorial team spent time is that underwriting guidelines are not reviewing some of the company’s pro- based on the borrower’s credit, income or grams, which include private lending, trust seasoning, which truly opens up the playdeed investing and unique investing vehi- ing field for many more investors. In real cles, which offer short-term liquidity and estate transactions, time is truly of the es-

MMG Capital Funds Creative Investors Across the Country

Realty411Guide.com

safety backed by real estate.

We then asked Gleason to give us and our readers a better understanding of how their services can help leverage the assets of their clients so they can grow their wealth more quickly.

First, Gleason gives us a glimpse as to who their typical “hard money” lending client might be and shares some of the criteria they look for when funding deals.

We see a very wide range of real property investors who are looking for capital, all the way from the most sophisticated investor down to the beginner. The investor who makes the best candidate for an MMG Capital Loan is the investor with at least moderate real estate investing experience and a substantial balance sheet.

MMG Capital is an asset-based lender, so we’re really looking for two things: hard equity and net worth. We can be a great financing partner for a real estate investor who is doing significant business and already has some substance to their balance sheet.

PAGE 39 • 2010

sence, and Gleason explains how their program can help investors move confidently on offers and close quickly on deals.

We take a very common sense approach to lending. Asset-based lending has been around for decades, but it was largely abandoned by most firms during the boom years because anybody who could fog a mirror could get credit. Now we’ve arrived back to an old school standard where we’re lending realistic amounts against realistic values and realistically taking into account the kind of trouble that our marketplace is in. It’s really a plus and a minus for investors – only those who have solid assets are able to obtain financing and “nothing down” scenarios don’t exist anymore. But, for those who have the net worth to support an asset-based loan, there’s very little competition for them and they can align themselves with a private lender like us who will provide them quick capital based on their current equity.

Continued on pg. 61 reWEALTHmag.com

Veteran Syndicator Discovers Golden Opportunities in California

W

oodson “Chip” Philbin began his career as a securities broker, but he soon left Wall Street to sell “tangible” investments.

Fast forward 23 years later, the Sacramento-based lender and mortgage broker now has a successful career as a real estate syndicator.

Many professionals are lured into the real estate industry with a hope of one day purchasing the very object they sell. At first, Philbin, CEO of Philbin Capital, wasn’t focused on his own portfolio as much as those of his clients. He was initially attracted to the business as a commercial real estate lender and mortgage broker because it made financial sense in contrast to the high volatility of the securities market.

“At one of my previous employers, the management started a real estate investment trust, got it listed on the American Stock Exchange, and raised about $100,000,000 to do mortgage loans. They went through the hundred million in about five years,“ he recalls. “Here I learned that one of the main objectives of those that manage REITS is to generate management fees and not necessarily safeguard their investors’ money.”

That experience, along with his experience as a stock broker and other stories similar to ENRON, made Philbin wary of paper assets. He explains: “Stocks have limited true inherent asset value contrary to real estate, which is tangible.”

Philbin, who was busy arranging funding for multimillion dollar deals his investors were securing, did not stay on the sidelines for long. “I formed a partnership with ten people I knew, and we made a hard money loan to a small grocery store north of Sacramento,” Chip says. He adds, “We loaned the owner/operator about $1,000,000 at 11% for two years. I had $100,000 in this deal and my investors provided the rest.”

One of the benefits of working in real estate is the networking opportunities that Realty411Guide.com

by Lori Peebles

come about in everyday affairs. Routine business connections can turn into friendships, which can then evolve into joint ventures. That was exactly the case for Philbin. His career as a commercial mortgage broker opened the way for joint ventures with his associates and clients.

“I was referred to a wellheeled investor by Comerica Bank, who owned a high tech company in Santa Clara and needed to refinance his plant. I arChip Philbin ranged the loan and didn’t hear from him for about four years,” he recalls. But then one day, opportunity knocked.

“He called me in to discuss another refinance, this time a cash-out refinance. We did some analysis on how much he should borrow and I arranged another loan for him. At that point we decided to become partners and to purchase cash-flowing commercial and multifamily property.”

The new partners joined forces and funds, which led to the purchase of a 72unit apartment complex in Chico, Calif., a property they still own today.

When questioned about his transition from adviser to partner in his dealings with clients, Philbin replies: “People have a real need for trusted advisers who are experts in their given industry. If you have a high degree of integrity and put your clients and investors ahead of your own interests, then opportunities will present themselves.”

Although rehabbing tends to attract the spotlight in real estate, Philbin shuns those quick-turn deals and prefers to invest with a five to seven year minimum holding period. Because of his mortgage background, when possible, Philbin prefers to refinance the asset after an initial holding period so that investors can retrieve their initial down payment, leaving little or no cash in the deal and magnifying returns. Philbin is partial to owning retail centers, single tenant NNNs, multifamily and industrial properties.

PAGE 40 • 2010

His angel investor continued to be involved in projects with Philbin and together they built a solid portfolio.

“With him as my partner, I developed three single-tenant NNN leased commercial buildings, all leased with terms of 15 to 20 years, in which I placed fixed-rate permanent financing right after completion and occupancy by the tenants.”

Long-term buys may be his strategy of choice, but make no mistake, cash flow today is the goal when Philbin and his investors acquire a property.

His success record is impressive. “The cash flow from this small portfolio is nearly $400,000 annually, plus I was able to finance out almost all of our entire cash investment, so we have very little cash left in these deals.”

The massive passive cash flow has been a blessing, but Philbin admits it made him a bit complacent. For the past several years he’s been working primarily on his handicap at the Northridge Golf Club in Fair Oaks instead of pounding the pavement to procure new investors.

But now that his primary angel investor is retiring, Philbin is actively recruiting new investor partners who are interested in commercial investment opportunities in the Northern and Central California marketplace.

The company prides itself in investing funds into every deal alongside the partner.

He believes in full disclosure, low management overhead, and welcomes partners who are relationship-oriented and are seeking long-term, tax-sheltered passive income.

While profits and returns are what investors strive for, Philbin stresses that building long-term business relationships is the most gratifying aspect of the real estate business.

“I really enjoy people and enjoy the real estate business,” says the 29-year industry veteran.

For questions regarding commercial real estate, contact Chip at (916) 961-6832 or visit: www.PhilbinCapital.com reWEALTHmag.com

Real Estate Investments/Partnerships

Â&#x2021; 3KLOELQ &DSLWDO &RUSRUDWLRQ LV DFFHSWLQJ OLPLWHG SDUWQHU LQYHVWRUV WR SXUFKDVH DQG KROG LQGXVWULDO UHWDLO DQG PXOWLIDPLO\ SURSHUWLHV LQ &HQWUDO DQG 1RUWKHUQ &DOLIRUQLD Â&#x2021; 7DUJHWHG LQYHVWRUV DUH KLJK QHW ZRUWK &DOLIRUQLD UHVLGHQWV ZKR ODFN WKH WLPH H[SHUWLVH RU FDSDFLW\ WR LQYHVW LQGLYLGXDOO\ Â&#x2021; 3URSHUWLHV ZLOO JHQHUDWH WD[ VKHOWHUHG FDVK Ă RZ DQG EXLOG HTXLW\ WKURXJK YDOXH DSSUHFLDWLRQ DQG ORDQ SULQFLSDO UHGXFWLRQ

â&#x20AC;&#x153;[Chip] is unique in that he has true professional understanding of all key DVSHFWV RI FRPPHUFLDO UHDO HVWDWH DFTXLVLWLRQ FRQVWUXFWLRQ DQG Ă&#x20AC;QDQFLQJ He has been very open in his communications and honest to a fault in KLV GHDOLQJV ZLWK PH , FDQ¡W UHFRPPHQG KLP KLJKO\ HQRXJK IRU RWKHU LQGLYLGXDOV ZDQWLQJ WR GR UHDO HVWDWH LQYHVWLQJ Âľ Gerald McIntyre - Partner

Visit our website at www.philbincapital.com

Realty411Guide.com

Â&#x2021; ,QYHVWRUV ULVN LV OLPLWHG WR WKHLU LQYHVWPHQW *HQHUDO 3DUWQHU SURYLGHV DQ\ DQG DOO ORDQ JXDUDQWHHV Â&#x2021; *HQHUDO 3DUWQHU KDV \HDUV FRPPHUFLDO UHDO HVWDWH H[SHULHQFH DQG LQYHVWV LQ HDFK GHDO Â&#x2021; )RU IXUWKHU LQIRUPDWLRQ SOHDVH FRQWDFW Chip Philbin 916-961-6832 wlphilbin@yahoo.com

PAGE 41 â&#x20AC;˘ 2010

reWEALTHmag.com

Success and Happiness in Life

by Sam Sadat, founder of Los Angeles Real Estate Investors Club

A

re you a creative person? When was the last time you came up with a creative idea? But why be creative? Why challenge the rules and perhaps even appear stupid to others? Because creativity is the stuff of life. That is a big reason, but there are other more reasons to consider. Another reason is change. We all know the only constant in life is change, albeit we tend to resist change. (In fact, the only person I know who likes “change” is a wet baby.)

When things change, new information emerges, which leads to a brand new set of problems. It’s proven time and time again that it’s no longer possible to solve today’s problems with yesterday’s answers. So you have a decision to make: You can either complain about how difficult things have become or employ your creative juices to come up with new ideas, new solutions,

for a few more years, but to benefit from it maximally requires new knowledge and applications. Remember how our lives have changed since the 9/11?

Well, the business rules of engagement have also changed drastically. Real estate has taken the biggest blow, and as usual, our government’s answer to every problem is more regulation. In contrast, I advocate education over regulation. But you can’t find that kind of knowledge in any accessible or even comprehensible fashion in our bureaucratic system.

To obtain this kind of knowledge required for prosperity, you need to attend and network in real estate meetings and seminars. Venues such as our real estate club, Los Angeles Real Estate Investors Club (LAREIC), will provide you with the new knowledge on how the game is being played now. Once you know what’s working in today’s market, you’d be able to further develop your creativity and capitalize on it more effectively.

Without this new information, you’re limited to old solutions, which are ineffectual in our fast-changing world.

I believe there are ways to enhance your creative powers. Here are a couple of suggestions from two highly successful people.

Steven Jobs was asked why some people are more creative than others. He replied, “Innovation is usually the result of connections of past experience, but if you have the same experiences as everybody else, you’re unlikely to look in a different direction.” For example, in college, Jobs took modern dance classes to meet women.

What he didn’t realize was how much he learned about movement and perception in those classes, which came handy years

Socrates once said: “An unexamined life is not worth living.” and new paradigms.

This economic turndown has vastly influenced our lives in recent years. It has forced us to stop and examine our lives. Socrates once said “an unexamined life is not worth living.” So, I think this recession may ultimately prove to be a good thing because we are learning valuable lessons. What would make it even better is if we further examine our spending habits and reasons why we tend to live beyond our means. This kind of introspection is needed if we are to attain financial freedom ourselves and to save our great country from becoming another great civilization that was.

To affect positive change we needed an impetus and we got one, the Subprime Meltdown, the biggest economic downturn since the Great Depression (or as I call it, the 9/11 of the business world). It is here Realty411Guide.com

PAGE 42 • 2010

later when he worked for the Atari Corporation. Thanks to his modern dance classes, he was able to calculate how much resolution of movement was needed in their video games.

The real estate entrepreneur Frank Morrow explains that he got his entrepreneurial education while attending the graduate school of business at Stanford. Although he took all the required courses in marketing, finance and accounting, he said. “I learned more about business from a drawing course than anything else. My teacher taught us: ‘All art is a series of recoveries from the first line. The hardest thing to do is to put down the first line. But you must.’ The same is true in business. You must act. A lot of business school-types analyze things to death and never get around to acting.

Perhaps more of them should take drawing lessons.”

I believe your mindset is more important than nuts and bolts. We have plenty of real estate knowledge at our monthly meetings and seminars to arm you with helpful tools to succeed in this market. But I challenge your beliefs relative to success. Remember that unless you break with the old, you won’t let in the new. In other words, Light (education, abundance and love) won’t come into your life until you show the courage to literally kick out Darkness (ignorance, scarcity and fear.)

So expand your horizons, step outside of what’s considered normal, break the boundaries of what seems reasonable, and act upon your knowledge. There’s never been a more important time in our country’s history (or the world for that matter), than the present. What we do today will affect humanity and shape our future destiny.

So, let’s make it a good one.

Kindest regards, Sam Sadat — sam@samsadat.com Be sure to visit online: www.LAREIC.org reWEALTHmag.com

HANNAH FLIEGEL, FICO PRO PHONE: 415-999-9348

http://www.HowDoYouScore.com OUR CREDIT RESTORATION

• PROVEN RESULTS IN AS LITTLE AS 60 DAYS • 24/7 ACCESS TO CLIENT’S SECURE ON-LINE ACCOUNT

WE WORK TO REMOVE LATE PAYMENTS MEDICAL COLLECTIONS JUDGEMENTS BANKRUPTCIES TAX LIENS CHARGE-OFFS FORECLOSURES STUDENT LOANS SHORT SALES SETTLEMENTS

LARGE EQUITY AND POSITIVE CA$H FLOW

DPW helps investors create wealth through Real Estate Investments. We will show you how to become a successful investor. We take away all the guess work because real estate investing should be effortless. We will do everything we can to make sure our investors are taken care of and are educated on the entire process.

Our goal is to make real estate investment easy for the average investor through our various investment programs.

?

How to Get the

Bigger Better

by Kathy Fettke

T

rying to get a good deal in today’s market can be frustrating. It might mean making a hundred offers before you get the one that makes sense. And even if you have cash and will close “as is,” you still might lose out.

Or you might end up with the property and find out later you paid too much or got stuck with a lemon.

So how are the experienced investors getting deals with less effort? At Real Wealth Network, we have found the power of numbers. Our teams buy in bulk directly from the bank.

The banks love this because they can move more property at once, even if it means slashing prices. In most cases, the properties never make it to the open market before we’ve hand-picked our favorites. It’s tough for an individual to compete with a bulk purchase.

We also pool funds to pick up almost-complete subdivisions or multi-family properties. Again, this is tough for the

Deal

individual investor because the price tags are much higher, but the deals are sweeter.

For example, we just wrote down a $12.9 million FDIC loan to $3 million on 27 almost-finished water-front condos in Portland. Investors will make over 40% in one year.

This is truly the greatest wealth transfer in history. Opportunities abound, and together we can make it happen.

Mistakes happen when inexperienced people jump into something they don’t understand.

That’s why so much wealth has been lost over the past decade.

You don’t have to go it alone, learn from the experts.

Real Wealth Network brings new and experienced investors together to share information and learn from each other.

Our site has articles, videos, blogs, podcasts and downloads to help educate our members to make smart investing decisions during this once-in-a-lifetime opportunity.

For information, visit: www.RealWealthNetwork.com

CashFlowCows.com Alternative Economics™ in Basedrvice e S CA nwide Natio

Sales and Referrals since 2006

Our Personal Team Can Help You Start or Grow Your RE Portfolio Sign Up Online for e-Mail Alerts!

Over $7 Million in Sales!

We help clients every step of the way...

We Even Hel You Manag p e After the Sale!

Owned by Linda Pliagas Her credentials include: Landlord since 1994 Licensed Real Estate Sales Agent since 2000 Out-of-State Landlord since 2004 - 5 States Founder & Publisher of Realty411 since 2007

C

by Linda Pliagas

alifornia is one of the most active states for investors. Even during this current economic downturn, the state is still a powerful economy in the global market. To meet the demand for investor education, a new investment club system was recently launched in California by Roger

that owns a 112-unit apartment complex in Florida.

Ritchie wholeheartedly believes in the importance of diversification and says others feel the same way. “This breadth of investment strategies attracts a much larger segment of my community,” he says. “Being built around Alternative Economics™, I am providing applicable economic alternatives to help members develop their own personal system of financial growth.”

Roger Ritchie Leads New Group License # 01355569

“I’m NEVER to Busy for YOU!” 310.994.1962 • pliagas@msn.com

Sign Up for VIP Listings @ CashFlowCows.com

SAM GREEN Photography Personal Photographic Artist

“Take Care, Keep Smiling”

* Headshots * Portraits * Personal Photo Shoots * Boudoir Photo Shoots * Private Parties * Special Occasions * Red Carpet Events * Children * Pets

(310) 947-6261 Sam@SamGreenPhotography.com www.SamGreenPhotography.com www.facebook.com/SamTheManGreen Realty411Guide.com

Club Launches in CA

Ritchie, a Los Angeles-based real estate investor and frequent club-circuit guest.

The Cerritos Investor Education Club, founded by Ritchie, however, goes way beyond the typical real estate club. The financial education training is based on Alternative Economics™, a personal system of financial growth education. It is designed to reveal hidden assets and apply them to alternative investment strategies using personal money rules that engage four asset-acceleration principles, through three financial growth stages.

Ritchie, who has regularly attended real estate clubs for years, chose to align himself with the National Strategic Investment Corporation (NSIC). His new club, the Cerritos Investor Education Club (CIEC), is the first California chapter. Ritchie’s goal is to form a club with diversified investment strategies to provide his members with “alternative investment strategies, not just real estate,” he says.

Ritchie has spent a lot of time and resources in developing his investment game plan. He is a David Lindahl graduate and also learns through the Joel Block’s syndication system. It is at Block’s event where he met NSIC founder, Steve Hettema. Ritchie is also a member of All Cities Network, a collection of networking groups. Currently, Ritchie is managing partner of an investment syndication group PAGE 46 • 2010

Through monthly meetings, Ritchie says CIEC will provide educational products to educate investors about a broad range of investment vehicles, both locally and nationally.

CIEC is now part of what makes up a growing investor community known as the National Strategic Investor Group (NSIG), whose clubs are based on the NSIC club model.

The NSIC is a company teaching investment and economic alternatives.

In addition to its readily applicable financial education, NSIC provides resources, products, services and opportunities through local and virtual investor clubs.

Ritchie is excited about CIEC’s launch and he credits Hettema’s office with providing him with the tools needed for an association to succeed. “ Not only does NSIC provide me with all the resources to start and manage my club, but the NSIC model shows me exactly how to successfully establish my club step by step.”

To learn more about NSIC, visit online www.ciec.nsicgroup.com and download the free Alternative Economics™ e-book.

For information about CIEC, contact: Roger Ritchie, Club Leader of the Cerritos Investor Education Club, (714) 793-3167, roger.ritchie@nsicgrouop.com reWEALTHmag.com

Triple Net Houses, pg. 9

They pay no expenses. If they finance the house for example at 5.5% or 6%, you’re going to get that spread using the bank’s money. If you buy a house for $60,000 and you put down 20%, $12,000 on the $48,000 you’re borrowing, you’re going to make 3.5% but that’s not using any of your money. You’re not making 3.5%; you’re making an infinite return. It’s the bank’s money. Now you’re going to get 9.1% on the balance,

News about Julian’s NNN model has spread quickly largely through referrals and online connections. “We have a blog, we do webinars, we do conferences just like your magazine.”

Now that Julian has established his NNN presence in the investment market, his new goal is to expand conservatively. He explains: “We want to grow fiscally responsibly.

This year we’d like to do about 120 houses, about 10 a month.

$/7(51$7,9( (&2120,&6

7+( 62/87,21 72 7+( )$,/,1* 75$',7,21$/ ),1$1&,$/ 3/$1 ,1 $0(5,&$

7KH &HUULWRV ,QYHVWRU (GXFDWLRQ &OXE &,(& LV WKH ILUVW &DOLIRUQLD FKDSWHU RI WKH 1DWLRQDO 6WUDWHJLF ,QYHVWRU *URXS 16,* ZKLFK DWWUDFWV DQG HGXFDWHV SDVVLYH LQYHVWRUV LQ $OWHUQDWLYH (FRQRPLFV $(

“This year we’d like to do about 120 houses, about 10 a month.”

We’re not quite at that target but we’re real close. It’s growing in the right direction. Next year we’d like to do 150 to 160 houses.”

As they continue to grow and prosper, Julian expressed his thoughts about expanding to other locations or cities.

“In another year or so we plan to move to Cincinnati, which would be the logical city. It is about 50 miles south of us with similar demographics.”

In real estate investing, slow and steady wins the race, and Triple Net Houses would win the Innovative Risk Reduction Award if they were to establish one in our industry.

For more information, please visit ww.TripleNetHouses.com

63(

$/ 2)) &,

(5

for a total return of 17%.”

Obviously, a lot of planning went into Julian’s investing modes. His personal experience as an investor started in 1975, and he’s been a real estate broker since 1979. Born in New York City, he moved to Dayton with his parents while he was in high school. He later attended Wright State University. Julian has been married for 36 years. His wife is a retired public librarian who still substitutes when needed. They have one son, Paul, who is 26 and is trained as a chemical engineer.

“But guess what?” Julian asks, and proudly replies: “He’s working for us now as an operation’s manager. It’s a family affair.”

6LJQ 8S )RU 2XU 0RQWKO\ 0HHWLQJV LQ &HUULWRV DQG 5HFHLYH D )5(( H %RRN

ZZZ FLHF QVLFJURXS FRP &217$&7

URJHU ULWFKLH#QVLFJURXS FRP Realty411Guide.com

PAGE 47 • 2010

reWEALTHmag.com

,

,

,

M

any Investors gamble their financial future and retirement dreams on capital appreciation.

Michael Woo, chairman of Longfin Investment Solutions, thinks that is unwise. “It’s time to get paid monthly instead of gambling on a 20-year pay out,” he says.

As chairman of Longfin Investment Solutions (LFI), Woo created a turn-key invest-

to invest, Woo says he bases his company’s approach on solid, factual data. “Our team constantly seeks out markets that can weather the storm based on strong job growth and economic or population expansion.”

Woo began his career as a real estate investor in 1995. Before eBay was ever in the picture, Woo sold and marketed collectible toys as a way to raise capital for his first investment. In two years, Woo raised

the CEO of ER Real Estate Investments.

Reynolds purchased her first rental at age 24 for $10,000 cash. Since then, she has been involved in numerous transactions and she is also currently an out-of-state investor. Reynolds enjoys assisting others in also maximizing their potential through the purchase of passive income real estate.

“My core belief is that real estate creates wealth, and wealth is effectively amassed through real estate acquisitions,” she says.

Stop The Gambling!

Why Bet on Future Appreciation When You Can CASH FLOW Today?

by Lori Peebles

ment system for investors who seek cash $50,000, a down payment for his very first flow in emerging markets. “Our properties property. Since then, Woo has been inare totally rehabbed, with existing property volved in hundreds of transactions.

His skills in management, and often Mike Woo with “Rich Dad, Poor Dad” the industry did already have renters in founders, Robert and Kim Kiyosaki not go unnoticed. place,” Woo says. “Our In February, Woo average NOI (Net Opwas honored as erating Income) rate of the recipient of return is between 25% Rich Dad eduto 36% ROI (Return cation’s Hall of on Investment) with F a m e Aw a r d , 10% to 12% cap rates. presented by Why wait for tomor“Rich Dad Poor row when you can cash Dad” author flow today?”

Robert Kiyosaki.

An avid fisherman, Woo was honWoo, who is a native ored for his role of Southern California and graduated from Torrance High School in increasing financial intelligence. In adand San Diego State University, named the dition, he was acknowledged for dedicatcompany Longfin to commemorate a fish- ing his time to helping others improve their own lives. erman’s special name for the albacore.

“We teach real estate investing funda“Albacores are renowned by sportsmen all over. They are a much sought-after game mentals, including having the right mindfish with attributes of being fast-moving set and goals,” Woo explains. “We want to hunters that operate together to achieve make each investor a better person and extend their investment dreams further than goals,” he explains.

Woo’s individualism also positively im- they could have ever imagined.”

In addition, Woo says they teach invespacts his investment philosophy.

For example, while many investment bro- tors to understand demographics, locations, kerages only deal with one specific type cash flow and ROI. Recently, Woo expanded LFI and added of property, such as single-family homes, Woo’s investment strategy is to find deals a dynamic partner: Erica Reynolds. She has been appointed as vice president and across the entire market spectrum.

Instead of letting headlines predict where marketing partner. Additionally, she is also Realty411Guide.com

PAGE 51 • 2010

Both Woo and Reynolds have great national resources accumulated from years of personal relationships, which they pass on to their clients. They also have established relationships with private equity lenders for financing. “Lending is not a problem for LFI and we do not want financing to be the reason you do not take action toward investing,” says Woo. LFI also created an affiliate marketing partner program, which offers profit sharing.

Erica Reynolds Reynolds explains, “Being a marketing partner is a great way to join the team and participate on many great deals. As a marketing partner, we offer great referral fees, equity partnerships and other benefits.”

Lately, Woo and Reynolds have been busier than ever attending many networking events and also hosting their “Stop the Gambling” seminars for the public in Southern and Northern California. LFI is also organizing investment road trips to Indianapolis, one of their target markets.

To learn about the “Stop the Gambling” educational seminars, contact Longfin Investment Solutions at: (949) 388-0678.

Visit LFI at: www.longfininvestments.com reWEALTHmag.com

Short Pay Refinance The Solution for Homeowners who have Underwater Mortgages

by Shahid Habib and Ketan Naran

H

omeowners all across the U.S. are feeling stressed out due to a decline in the value of their homes and the fact that they now owe the bank more than their property is worth. However, there is hope through an option known as short pay refinance, which is a great solution for them, if they qualify.

According to a report published in May 2010 by First American CoreLogic, a real estate information company based in Santa Ana, Calif., “more than 11.2 million, or 24% of all residential properties with mortgages were in negative equity at the end of the first quarter of 2010.” Out of that number, in California alone, more than 2.4 million homes, or one third of all mortgages, have negative equity.

The underwater mortgages and negative equity pose a roadblock to a housing recovery because the underwater mortgages are more likely to fall into default leading to a potential foreclosure by the bank.

Most banks have already been taking big losses on foreclosure and short sale properties and are considering other options as well.

Short Pay Access, a company based in San Ramon, Calif., is able to help homeowners anywhere in the U.S. through the best short pay refinance program available today. The company does not charge any

Shahid

Ketan

up-front fees to homeowners. It offers a solution for both banks as well as for the homeowners.

The homeowners get to keep their home with a lower principal balance and lower monthly mortgage payments more in line with the current value of their home, and the banks get a chance to “clean-up” their balance sheet by getting a property completely off their books.

Banks are becoming more willing to accept a short pay refinance especially if the borrower is current on their mortgage but is experiencing some type of short-term financial difficulty or the interest rate on the borrower’s current loan is about to increase.

A short pay refinance also provides the bank with an infusion of “cash,” which increases their ability to invest in other opportunities or to lend out.

Banks are in the “lending” business and not the real estate business.

Unlike a loan modification or a short sale, which sometimes requires a borrower to be delinquent on their mortgage payments, the short pay refinance program follows standard lending guidelines and only works if the borrower has a clean recent mortgage payment history.

1. The mortgage needs to be more than the current market value of the home.

2. Borrowers need to be current on their mortgage – no late payments.

3. The borrower’s credit score must be 620 or better.

4. They must have verifiable income.

5. The property must be the borrower’s primary residence.

Short Pay Access works with the lender in order to complete the short pay refinance and gets the lender to write off a portion of the loan amount. A short pay refinance gives homeowners the ability to refinance their homes at the fair market value. The process involves paying off the current lenders loan at fair market value and then refinancing

their home with a new lender at the current market value.

The Short Pay Access team consists of experienced negotiators who have carefully built working relationships with lenders. The negotiating team is well versed in the lender’s requirements and preferences and uses this experience to help

Do You Feel Trapped by Your Current Mortgage and the Loss of Your Home's Value?

Let us help you

'Short Pay Refinance' a new option with

NO Upfront Fees!

the homeowner without wasting any time dealing with unknowns.

(This is not a loan modification or a short sale)

For more information, contact Short Pay Access online at www.ShortPayAccess.com or call (925) 309-6109 for a no obligation free consultation.

It could help you to Keep your home Lower your principal balance Lower your monthly payment Eliminate Negative Equity ket to lawyers who specialize in family law, estate planning and probate. Also, don’t overlook paralegals who can be a wonderful source of leads. #3: Your Target Zone: For maximum success, farm your area just as a REALTOR would. Posting signs around your farm area, as well as displaying a clever advertisement on your vehicle can lead to success. #2: Make Many, Many Offers!

An aggressive investor should be making at least 10 offers a day or 200 offers per month.

How do you compare? Well, then please don’t complain that you can’t land a deal!

Realty411Guide.com

Contact us today to find out if you qualify 925-309-6109 www. Short PayAccess Pay Access .com

PAGE 53 • 2010

reWEALTHmag.com

by Linda Pliagas & Lori Peebles

STOP!

Before you purchase that shiny, new luxury vehicle — the one that’s going to plummet in value as soon as it’s driven off the lot — think about buying a rental income property instead.

That’s right, for about the same price tag as a 2010 Mercedes-Benz M-Class (MSRP: $45,700), an investor can purchase a rental property in Memphis, Tenn, instead. Plus, they can pay it off completely in five years — the same time as the car.

This turbocharged investing structure,

tional roadblocks, such investors annually, he says they can deliver as the number of existing properties at deep discounts. mortgages one has, or a Additionally, since Reedy knows that lack of seasoned funds cash flow and built-in equity at purchase are or less-than-stellar credit primary components of a great investment, scores are simply non- he says they “are willing to leave enough issues with their private profit in the deal for the client to have great financing program. cash flow and success, which leads to reSo what’s the catch? A larger-than-normal turning clients and more business.” downpayment for a residential purchase is To handle the management of his own required (30% to rentals, as well as Craig Jennings and Jim Reedy. t h e b u r g e o n i n g 50%), which is actually a percentage empire of his clithat is common these ents, which now days in commercial number close to real estate transac1,000 properties, tions. The property Reedy relies on his is then paid off in 60 staff of 15, which months (amortized includes four fullin seven years). In time leasing agents the meantime, inand numerous vestors can expect a independent conbit of monthly cash tractors.

Keep the Older Car|Buy a Rental Instead coined the Short Term Retirement pro- flow to help them maintain the property. gram, is marketed by Jim Reedy, CEO of It’s a bullish investing program offering Memphis Investment Properties, LLC, a easy terms and, best of all, no restrictions. full service real estate investment brokerWhen Reedy found out about the proage and management company. gram, which was developed by Robert Memphis Investment Properties (www. Feol, a local real estate finance expert, he memphisinvestmentproperties.net), found- knew he wanted his company to have exed in 1985 by Reedy and his wife, Debi, clusivity. Reedy says the program was so is an exclusive provider for the Short Term good, he wanted to keep it all to himself.

Retirement (STR) program in the Memphis Real estate has been Reedy’s passion and metro area. focus for 34 years. He majored The team relaxes after a meeting.

The most in real estate at the University enticing asof Memphis and has been sellpect of STR ing homes since his senior is the speed year. in which an “I fell in love with real estate investor can during college,” he admits. have their “The sky was the limit.” rental comReedy says that from perpletely paid sonal experience he knows off, which investing in real estate is more then maxilucrative than working as a mizes cash REALTOR®. His family curf l o w. T h e i r rently own and manage an program also offers tremendous flexibility, impressive personal portfolio of more than enabling people who normally would not 300 single family rentals. be able to qualify for a property a chance Because Reedy and his team are active to build wealth by owning rentals. Tradi- real estate investors, servicing hundreds of Realty411Guide.com

PAGE 55 • 2010

In 2008, Craig Jennings was recruited to handle investor relations. Jennings established himself with Reedy as a talented wholesaler, often providing Reedy with outstanding deals for his clients.

Shortly after, the team was joined by Curt Davis, who is now a leading sales executive for the company. Together they field requests and answer questions from investors around the nation, and even from around the globe.

When asked where the majority of Memphis Investment Properties’ clients come from, Reedy quickly replies that most of their investors come from the West Coast, California in particular. The East Coast also brings in a lot of activity. Tennessee is also gaining popularity with investors living outside of the United States, as well as with recent U.S. immigrants. Reedy says lately he is seeing “lots of foreign activity.”

For Reedy and his team, real estate investing is not just a business, it’s a lifestyle.

In fact, his wife, Debi, is chief operation officer, and one of Reedy’s five children is also a top producer in her market in the Continued on pg. 62 reWEALTHmag.com

by Crystal Han of 360 Investments™ | edited by Scott C. Seckel

Who’s On Your Team?

T

hese days with the current economic and credit crisis, it’s not what you know, it’s who you know. 360 Investments™ realizes that investing in real estate is a team sport. That’s why we have built local power teams in major cities across the country. Having the right industry professionals on your team will make all the difference in your investing success.

Here is a list of important team members to have on board: •Get a mentor, with a proven track record, who has successfully acquired the type of real estate investments you want to have.

Your local real estate investment association, abbreviated as REIA, may be a good place to find a mentor. Make sure you contribute to your mentor if you are not paying for their time to teach you and take you under their wing.

•Find a REALTOR® who can give you information about the local market.

A REALTOR® can provide you with comparable sales (COMPS), current market values, average days on market (DOM), appreciation/depreciation rates, and other valuable information. Provide leads to your REALTOR® by sending potential clients their way and make sure they receive their Realty411Guide.com

well-earned commission.

•A mortgage professional is essential. They can be a direct lender, bank or mortgage broker. Shop around until you find one who can tackle creative ways to finance a deal.

Ask about their loan fees and programs.

It’s critical to find out about their qualifications, seasoning and percentage-down requirements.

These professionals can also lead you to private and hard money sources. Always ask for a Good Faith Estimate (GFE) and compare statements. Find out their average time to fund and close a deal since time is money!

•The right title, escrow or closing attorney, depending on the state, is your best friend. Interview several until you find one that understands unconventional ways to transact real estate deals. Ask them if they are familiar with assignments, double or simultaneous closings. You want someone who can draft up notes, deeds of trust or mortgages.

Title representatives can also provide you with access to title reports, foreclosure listings, and farming packages made up of mailing lists and labels for marketing purposes.

•You will need several attorneys on board, who specialize in different areas. Engage an asset protection attorney who understands entity formation, a local real estate transactional attorney who can review your contracts, and an estate planning attorney to pass your inheritance on to your heirs without costly and timeconsuming probate proceedings.

•Real estate investments offer huge tax benefits. It is important to get a highly qualified tax professional, a certified public accountant (CPA), or a tax attorney who understands the tax codes. Choose a professional who also invests in real estate.

They will know the maximum deductions PAGE 57 • 2010

available to your type of business.

•Get an insurance agent who will issue your policies for the best protective coverage in the state where you own real estate at the best prices. Always compare rates.

•A reliable general contractor will give you work estimates and project bids. These quotes are tools with great negotiating power. Request a copy of their license and check with the state board to make sure the contractor is in good standing. Get plenty of references and do not pay in advance.

•Locate a certified property inspector who will inspect your properties and provide a detailed inspection report and photographs of their findings. The report can be used for negotiating the purchase price. It can also be used as a walk-away clause.

•Appraisers are priceless in this current market. They provide market values, comparable sales, and draft up appraisal reports on their findings. Please note, with the new HVCC guidelines, lenders choose their own appraisers when determining value for lending purposes.

•Property managers and management companies are the key to long-term investing success. Make sure to get lots of references from other property owners. Review the property management agreement carefully and make sure you understand everything clearly. Find out the management fee, advertising costs, service call fees, average turn-over costs, vacancy rates, eviction rates, total number of units managed, number of years in business, term of agreement, monthly statement schedule, online system accessibility, and direct deposit options.

Always retain copies of lease agreements with tenants. It’s your job to manage the property manager!

•Last, but certainly not least, get an accountability partner and a local network of investors who will provide you with ongoing support and updated information on other industry professionals, the markets, and other investment opportunities.

Building a profitable real estate investment portfolio takes a strong team, and more importantly, a great team leader who selects the right team members! reWEALTHmag.com

The Ultimate Cash Flow Buying Tour, pg. 37

The Clothiers discussed their own personal story of their quest for passive income and presented their research on the market.

Then they introduced the members of their team. After a brief networking break, they passed out a large, white sealed envelope with the information everyone was waiting for: The Deals.

Guests were more than eager and ready to buy a cash flow property based on an address, a photograph and numbers. Most rental homes cash flowed

about $350 monthly.

The elegant banquet room where the education took place was filled with many Californians like me, including a young couple from Burbank who rented a recreational vehicle and drove nearly 2,000 miles to buy a property in Memphis.

“We left on the Fourth of July and plan on touring different cities for two weeks after this,” Declan and Shaun Hoare said. The new investors purchased a three-bedroom, two-bath brick home on the

Guests listen to Kent Sr.

AUGUST SCHEDULE August 4, 2010 6:30 to 8:30 pm Pasadena Library 285 E. Walnut St. Pasadena, CA 91101 August 5, 2010 6:00 to 8:00 pm Torrance Library 3301 Torrance Blvd.

Torrance, CA 90503 August 10, 2010 5:30 to 7:30 pm Angela Iacobini Library 4900 Clark Ave. Lakewood, CA 90712

August 24, 2010 6:00 to 8:00 pm Valencia Library 23743 West Valencia Blvd.

Valencia, CA 91355 August 25, 2010 6:30 to 9:00 pm LA Real Estate Investors Club Beverly Hills Country Club 3084 Motor Ave. Los Angeles, CA 90064

very first day of the tour.

Kent Sr.’s luring promise that I would never see anything quite like this proved to be true. The action that was taken on that day was mind-blowing. A total of 29 homes were sold, all sight unseen. I was captivated by the volume of deals done as well as the strategies they spoke about, such as their guerilla-marketing leasing system.

Here is the creative way they fill vacancies: MemphisInvest.com hires multiple leasing agents on commission to show and rent out their client’s property. A total of four signs are placed on the lawn, each with a different number, each reaching a distinct agent. Competition is created. Each leasing agent is on high alert: If they want to get paid, they have to be the first to answer the phone and show the property.

Another management technique that really stood out is the system they have of calling their clients just to touch base. Once a month, investors receive a status report, even if there is nothing wrong with the property.

“If a client has to call us to check on their property, then we are not doing our job,” Chris explained to the audience.

Our group saw their four-sign leasing system on the second day of the tour. On that day, we hit the road on two buses and saw numerous sample properties.

We saw houses in all states of renovation, from the stinky and messy to the shiny and fresh. The rehabbed homes featured hardwood floors, soothing earth-tone colors, new tile and new countertops. The quality of their remodel is a testament to Kent Sr.’s perfectionism and attention to detail.

After attending the tour, it became clear that I was in the middle of one of the best investing markets in the country, and in the presence of industry leaders. If your goal is to purchase a quality rental in a burgeoning market and have it managed by a proactive and creative team, then be sure to pencil in the next The Ultimate Cash Flow Buying Tour on your calendar.

Don’t Miss the Next Tour

* September 24 & 25 * Space is Limited, Reserve Early

1-877-773-9998 or 1-901-751-7191 http://www.MIBuyingTour.com or http://www.MemphisInvest.com Realty411Guide.com

PAGE 58 • 2010

reWEALTHmag.com

A Visit to 12 Rounds, pg. 30

More recently, an out-of-town owner of a vacant home began to receive citations from the city due to the blighted condition of a property she owned. The woman no longer had a need for the home, which had been broken into and vandalized. Instead of having to pay additional fines or incur a large expense to fix the abandoned property, she opted to sell “as-is” to Sensei at a 45% discount, and Sensei flipped the property using a double-close technique to a rehabber. Sensei used no money, no credit and no loans, just pure wholesaling.

Yes, a profit (typically larger than most real estate transactions) will be made for wholesaling a property as it should be. An

Wholesaling “does not require cash, credit or a license, which equals NO RISK.” investor is providing a creative solution to the owner of a distressed property and/or the owner may be distressed. Having a distressed situation creates an opportunity for the investor to help and profit as well.

Sensei reminds his devotees that in today’s flooded foreclosure market, wholesaling is a service that is needed more than ever. Sensei’s mindset of placing people before profit is the philosophy he carries with him when he approaches any deal and in his own dealings with people.

“Help first,” he stresses, adding, “You will be blessed with rewards later.”

Secrets from Sensei, pg. 30

#4: Attorneys and Paralegals: Be sure to market to lawyers who specialize in family law, estate planning and probate. Also, don’t overlook paralegals who can be a wonderful source of leads. #3: Your Target Zone: For maximum success, farm your area just as a REALTOR® would. Posting signs around your farm area, as well as displaying a clever advertisement on your vehicle, can lead to success. #2: Make Many, Many Offers! An aggressive investor should be making at least 10 offers a day or 200 offers per month. How do you compare? #1: Piggyback Your Deals: Don’t be afraid to partner up and share your deals with other wholesalers. The more wholesalers in your database, the easier it is to share buyers and sellers. Don’t be greedy and dishonest. Remember: Your reputation is more important than money. Once tarnished, it seldom can be restored.

For information about Sensei Gilliland and Black Belt Investors, please call (951) 2801900 or visit: www.CashandWealth.com

GreenBlasts.com

310.439.1145 | greenblasts@gmail.com

Expertise: Retail Foreclosures Short Sales Agreement for Deeds Apartments REOs Auctions Subject-to Lease Options 6601 Owens Drive, Suite 245 Pleasanton, CA 94588 Tel: 925-460-8255 www.bestrealty-ca.com

“Obstacles are the things we see when we take our eyes off our goals.”

-Zig Ziglar

For information about Sensei Gilliland and Black Belt Investors, please call (951) 2801900 or visit: www.CashandWealth.com

Keep the Flame Burning!

Log On to Realty411’s VIP Network

FREE to Join * LIVE Chat Available http://realty411guide.ning.com Find Events, Deals, Friends & MORE

Questions? Call: 310.499.9545 Realty411Guide.com

PAGE 59 • 2010

reWEALTHmag.com

David Lindahl, pg. 7

them deals). I learned what they were looking for in a property. And whenever I found something in common among investors, I knew I was on my way to developing a system for creating wealth with real estate.

My first building was small three-unit flat. But it was a “profit snowball” that put everything in motion and would lead to an avalanche of income.

Within six months I had nine properties. At the end of my first year, I owned 11 small apartment buildings, giving me a positive cash flow of $9,700 per month. I was motivated!

Millionaires Are Not Landlords It surprises some people when I say that my key to moving into the major leagues of real estate investing — what skyrocketed me from owning just a handful of small buildings to controlling more than 300 properties — was my decision not to be a landlord. I would do no “hands-on” work.

Knowing how to invest in apartments without personally dealing with tenants is essential to becoming a multimillionaire investor.

I never deal with tenants personally. I never personally fix leaky faucets. I don’t mow lawns. I turn all the landlord duties over to management companies. A good management company makes you money and should be viewed as an income generator, not as an expense.

Today I control over 7,400 units. That’s 7,400 checks from tenants. My monthly cash flow is greater than what many people make in a lifetime.

But I almost never got started because of a few misconceptions that most newbie investors face.

4 Misconceptions That Can Cost You Millions Some notions about investing in apartments are as outdated and flat-out wrong as thinking the world is flat. Yet they continue to hang on and stop thousands of investors

from taking advantage of the huge moneymaking potential that apartments hold.

Misconception #1: Small investors should start with single family homes because there’s less risk.

Apartments can be the safer way to get started. If your tenant moves out of a single family house, your property sits empty. The mortgage isn’t going to stop until you find another tenant. However, if a tenant moves out of an apartment complex, the income continues to flow from other units.

Misconception #2: Apartments are more difficult and time-consuming than singlefamily houses.

Think of it this way… does buying a Porsche take exceedingly longer than buying a Kia? No. It’s the same basic process.

With apartments, you use largely the same methods as with single-family homes. And where there are differences, I’ve developed systems that clearly spell out what needs to be done and when.

Misconception #3: You need stellar personal credit and high income to buy apart-

is your

RETIREMENT ACCOUNT truly

DIVERSIFIED?

BUILDING WEALTH THROUGH REAL ESTATE

Let Freedom Growth Show You How Self-Directed Investing Can Make a Difference Freedom Growth is a self-directed retirement consulting firm based in Southern California that specializes in real estate investing through self-directed IRAs. We preach true portfolio diversification and have assembled a team of talented experts to smoothly transition our clients from passive retirement account possessors to savvy real estate investors.

We’ve fostered relationships with the best and brightest around the country to help our clients build a sound self-directed portfolio that extends beyond the stock market to include real estate.

So whether you are a seasoned real estate investor looking for a new way to fund deals or a devoted saver who wants to diversify a retirement account, Freedom Growth can help.

Visit our website for more information at www.FreedomGrowth.com or call us at 888/843/0256.

ment houses.

When you buy apartment houses, lenders focus on the cash flow of the building, not your personal income stream.

If you find a building with a strong positive cash flow, a building that pays off the loan without relying on you, then you have a the foundation of viable deal. The math is not complicated. I’ve created a worksheet that lets me know within seven minutes if a property is a viable investment — so simple a fifth grader can do it.

Misconception #4: Investing in apartments means dealing with tenants.

It has been years since I spoke with any tenant. But you don’t want to replace one headache (dealing with tenants) with another headache (dealing with ineffective management companies). So I created a process that allows me to “manage the manager” effectively and profitably.

Strong Systems Make Strong Investors Only take advice on investing in apartments from someone who is making millions of dollars practicing what they preach. I buy apartments al-

most every month. My systems are proven to build, protect, and ensure wealth — and I’ve grouped them in a one-stop program called Apartment House Riches.

I’ve made it simple for almost anyone to use my strategies to find properties and structure wildly lucrative deals.

You have a roadmap for making buckets of money in today’s market just as I do.

Apartment House Riches In your community right now there are apartment buildings rich in income potential. My Apartment House Riches program shows you how to find them. It gives you proven strategies for making money hand over fist.

To preview this exclusive program visit www.rementor. com/realty411.

Dave Lindahl is the author of several top-selling books including “Commercial Real Estate Investing 101,” written with Donald Trump. For more information on his authoritative master course, Apartment House Riches, please visit: www.rementor.com/realty411

MMG CAPITAL, pg. 39

Whereas the majority of banking institutions sell their notes, the company typically holds all of their notes until maturity.

MMG Capital prides itself on doing business differently.

However, Gleason says the cost of their private money is comparable to that of most other private money lenders.

Nowadays, investors can expect a total cost for a loan to be in the neighborhood of anywhere from 15% to 20% per annum, that includes the cost of interest and fees. Most Realty411Guide.com

of our terms are between 12 and 36 months.

With their flexible lending practices, based on the underwriting decisions of real people not computers, MMG Capital is weathering the storm that has slammed America’s real estate sector, unleashing a tsunami of bad debt. In fact, the California company has grown stronger during this turbulent season.

For more information about MMG Capital, LLC, visit their two websites: For borrowers: www.mmgcap.com; Investors: www.mmginvestors.com

Investment Tools Proven to Work!

Rental Property Analyzer is a great piece guess work out of purchasing property

www.SmartInvestorTool.com Developed by the founders of HomeReplay.com, this software tool: •Takes the guess work out of buying •Compares multiple properties at once for quick best-buy decisions •Accounts for hidden costs to prevent costly rehab surprises at the end of the job •Provides estimate of current property value based on the condition of property •Provides solid repair cost estimates for renovation projects •Supports up to 20 financial options for comparison purposes •Has charts, graphs, and tables for cash flow analysis and future profit projections •Projects the After Repair Value of a property based on size, location, and rehab work

Invest In Your Business, Invest in Your Future,

Invest in the Rental Property Analyzer

PAGE 61 • 2010

reWEALTHmag.com

Complete Property Improvements We Put the ‘DO’ in the ‘Honey Do List’ Services Throughout Southern California To:

Property Managers • Landlords • Bankers • Home Owners • Retailers • Real Estate Agents • Commercial/Industrial

877-486-6239 | www.CompletePropertyImprovements.com Painting • Garage Doors • Flooring • HVAC • Framing • Board Up • Patios • Kitchen & Bath Drywall Service • Carpentry • Window/ • Landscaping • Texturing • Main- Service Replacement tenance • Pluming • Lighting • Electrical • Handyman Services Willie Jenkins

President

General Contractor LIC # 913123

You’ve ofModel Model You’veHeard Heard of HomeLease Lease Backs…

Home Backs…

Now learn about the best lease back program in the country, health care lease backs!

Earn a 25% cash on cash return per year PLUS a 2 year exit strategy that pays a bonus of $30,000, for a total two year return of 85% secured by real estate.

Call or email for our no obligation fulfillment kit.

877-730-7830 or adcconsulting@gmx.com

Short Term Retirement, pg. 55

state of Georgia. Reedy and his wife have been married for more than 30 years and are both native Memphians.

They say they’re fortunate to live and invest in Memphis for several reasons: “We have low price points and high rents per square feet. We are a slow-growth city, we don’t have major swings in the local economy.”

Historically a trading center for cotton and hardwood, Memphis is now headquarters for major manufacturing, services and other business sectors. The city is home to three Fortune 500 company headquarters: FedEx, AutoZone and International Paper.

Memphis’s economy is diverse. The area services include: banking and finance (First Tennessee, National Commerce Bancorp, Union Planters); real estate (Belz Enterprises, Boyle Investment Co., and Weston Co.); nonprofits, including the world’s largest waterfowl and wetlands conservation organization (Ducks Unlimited); and a restaurant chain (Backyard Burgers).

Science and technology are strong local industries too. Memphis is also considered a Mid-South retail center and an attractive tourist destination.

With so many positive attributes, Memphis is definitely commanding the attention of investors around the world.

So now that the word is out about the Short Term Retirement (STR) program, don’t be surprised if you see more investors holding on to their older used car a little while longer so they can buy a rental property in Memphis instead.

GreenBlasts.com We can design & deploy your eBlast to any demographic, industry or city.

Instant, Trackable & Green.

With 250 Million plus Global Emails We Have the LARGEST Database in the entire Real Estate Industry 310.499.9545 | greenblasts@gmail.com

Owned & Operated by the Publishers of Realty411 & Real Estate Wealth Magazines

Realty411Guide.com

PAGE 62 • 2010

reWEALTHmag.com