REI Voice Nov 2010

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November 2010

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MANAGING THE MARGIN • BEST CASH FLOW STATES • ASSET PROTECTION GAMBITS • 4 REASONS TO BUY NOW

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Below are a few recent examples of trust deeds available through The Norris Group. Location: Fontana, CA Appraised Value: $170,000 Loan Amount: $102,000 Loan to Value: 60% Payment to Investor: $765 per month

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

Location: Desert Hot Springs, CA Appraised Value: $86,000 Loan Amount: $50,000 Loan to Value: 58.13% Payment to Investor: $375 per month

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Location: Hesperia, CA Appraised Value: $92,000 Loan Amount: $55,000 Loan to Value: 59.78% Payment to Investor: $412 per month

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Location: Victorville, CA Appraised Value: $75,000 Loan Amount: $45,000 Loan to Value: 60% Payment to Investor: $562 per month

Call 951-780 -5856 or visit our web site today for your Free Book and DVD.

To receive property information sheets of available trust deeds and a copy of our free book and DVD on trust deed investing, call our office at 951-780-5856. Savings accounts, CDs, and stocks have offered dismal returns over the past several years. The Norris Group’s trust deed investments earn 9% return backed E\ GLVFRXQWHG FDVK à RZLQJ &DOLIRUQLD real estate.

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California D epar tment of Real Es tate, Real Es tate Broker Bruce Norris Financial Group Inc . DBA T he Norris Group DRE License 01219911 10/16/2010 10:52:31 AM

SOUND OPINION—WISE DECISIONS: VOICE OF THE PROFITABLE REAL ESTATE INVESTOR

TABLE OF CONTENTS

T R E N DS

BAS I C S

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The Self-Destructive Behavior of Loan Servicers

Who Will Receive Your Real Estate Legacy?

Howard Blum recaps the craziness of the robosigning debacle and what it means for the future.

Ensuring that your heirs receive the lion’s share of your estate takes planning. Nancy Chillag, attorney & CPA, reveals the fundamentals of estate planning.

8 The Silver Lining in Lending Mortgage broker Michael Ryan on why now is a great time to borrow.

A N A LYS I S

11 Managing the Margin Benjamin Franklin got it right according to investor/analyst Sean O’Toole. He looks at what it takes to make a successful entrepreneur and finds one element in common.

ADVICE

14 Financial Lessons from the Ides of October

High Tech Tools Redefine Cash Flow Analysis Conventional wisdom about the best predictors of future cash flow were put to the test by former engineer and current investor Tom Wilson. By removing preconceptions from the equation, he yielded surprising results.

Year End Tax Planning Enrolled agent Richard Smith provides a 47-point checklist for reducing your 2010 tax liability. Why not a 50-point checklist? He reduced his advice by 6% to illustrate his methods.

Three decades in real estate, taught veteran investor and market timing expert Bruce Norris how to roll with the punches. He shares his timeless advice for surviving the real estate roller coaster.

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16

Investor/broker Stuart Baeriswyl gives four reasons to pull the trigger and invest now while market forces favor the buyer.

Navigate the Note Business with your IRA Seller financing is not for the risk adverse, but with advice from Lisa Moren Bromma, investors can make wise decisions and very, very lucrative, tax sheltered investments.

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Entry Level Investor FE AT U R E S

10 Allure of Social Media Stop asking “How to” and begin asking “Why to” is the advice of marketing and social media expert Aaron Norris.

Asset Protection: A Common Sense Approach Unlike the frightening hyperbole spun by purveyors of elaborate and costly asset protection schemes, Attorney Jeffrey B. Hare recommends that real estate asset protection begins with the basics.

26 Ger’s Top 5 24 Resources For the profitable realestate investor

Nov. 2010 REI VOICE

P U B L I S H E R ’ S NOTE REI Voice™ Magazine

WELCOME

A publication of SJREI Assocation™ Publisher Geraldine Barry | 408-264-3198

ACTION is the word of the inaugural edition of REI Voice™ magazine. We at SJREI Association™ saw a need to voice the sound, informed opinions of experts that enable real estate investors to make wise decisions.

Geraldine@SJREI.org Editor-in-Chief Susan Hare | 408-391-8068 Susan@REIVoice.com Advertising Sales Nobuko Isomata | 650-922-1786

Geraldine Barry Publisher President of SJREI Association

REI VOICE Nov. 2010

We didn’t sit on the fence dithering about the timing or worrying about stretching our resources, we jumped in and this beautiful, informative publication is the result. If you’re reading this magazine, get ready to take action. This is an exciting time to get involved in real estate investing. Here you’ll find the tools and information you need to become a profitable real estate investor and to increase the profitability of your existing portfolio. Bruce Norris, undisputed expert on trends in the California real estate market, shares his wisdom for surviving and thriving in real estate; Sean O’Toole, foreclosure data mining guru and founder of ForeclosureRadar.com, offers important advice for managing the margins in foreclosure properties; Lisa Moren Broma—the original wise woman investor—shares her take on investing in seller-financed notes inside or outside an IRA. These, and many other real estate experts, generously offer valuable information to help you make wise decisions. Now, get ready for some publishing heresy—reading this magazine alone isn’t enough. Successful people are not loners. They understand the importance of making connections face-toface. That is where SJREI Association comes in. We are the bay area’s premier real estate investing association. With three chapters in the bay area there is no excuse for staying home. We draw hundreds of smart, friendly people to our monthly meetings. They come

to hear the best speakers, to stay connected, to collaborate with others, and some come to give back by mentoring those new to real estate investing. We offer new member orientation and have a new member greeter ready to welcome you and help you make connections. Are you ready to take action? Read this issue of REI Voice cover-to-cover and then come to the next meeting of SJREI Association. For a schedule of events and to register, visit www.SJREI. org. We start at 6 p.m. with registration and socializing, at 6:15 our Meet the Experts session is designed to answer fundamental and topical information important to the real estate investor, at 7 p.m. we begin our general meeting and introduce our keynote speaker. Please take one other action: the support of our affiliate members and advertisers is essential to getting the voices of these real estate experts to you—please offer our affiliates and advertisers your patronage. Happy reading. I look forward to meeting you personally.

Nobuko@REIVoice.com Contributors Lisa Moren Broma | Info@WiseWomenInvestor.com Howard Blum | Newsltr@Econonews.net Aaron Norris | Aaron@TheNorrisGroup.com Bruce Norris | Bruce@TheNorrisGroup.com Sean O’Toole | Info@ForeclosureRadar.com Art Director Kevin Bell kbell@Western-Web.net Director, Administration Meghan Koslowski | 408-264-3198 Meghan@SJREI.org Printer Western Web Western-Web.net

SJREI Association is a member of NREIA®

REI Voice™ is a publication of SJREI Association™ www.SJREI.org Reproduction or use of any editorial or graphic is prohibited. To request reprints or reprint rights, contact Info@REIVoice.com. Subscriptions The annual subscription to REI Voice Magazine is $29.95 for six issues mailed within the United States. To order a subscription, visit REIVoice.

Publisher President of SJREI Association

com/Subscribe. REI Voice Magazine

P.S.

c/o SJREI Association

REI Voice magazine is yet another free benefit of membership in SJREI Association. Yes, we welcome subscriptions, but why not join instead!

P.O. Box 90542, San Jose, CA 95109-3542 www.REIVoice.com Copyright © 2010 SJREI Association. All rights reserved.

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Nov. 2010 REI VOICE

T R E N DS

The Self-Destr Behavior of

REI VOICE Nov. 2010

estructiVE Loan Servicers By Howard Blum The Financial News & Information Service

J

ust when we thought things could not get any more convoluted and confusing in the housing sector, they did. It is almost as if the banking and loan servicers of America are determined to self-destruct with what they have (and have not) been doing. No doubt you have already heard about the “Robo Signing” of countless tens or hundreds of thousands of foreclosure filings done improperly by entities like Bank of America, JPMorgan Chase, Citibank, GMAC Mortgage and likely others too. These servicers had people sign off on the foreclosure paperwork without making any attempt to verify the accuracy or authenticity of the information in the documents. Small items like loan balances, payments in arrears and length of the delinquency. Crazy, aye? A few days ago there was a press release stating that Old Republic Title Company was no longer going to insure the titles of bank owned REO properties that were sold due to the Robo situation. Yesterday there were stories in the press that Old Republic denied making that a firm policy. Coincidently on my way to the site of the annual American Land Title Company convention at the Manchester Grand Hyatt Hotel in San Diego I shared a taxi with one of the most senior executives of Old Republic. He said off the record that the press release was partially accurate and refused to say more when he asked me if I was going to write a story about it. There is more to this story.

Wednesday it was announced that Fidelity National Title had struck a deal with Bank of America that may become the template for all title companies. B of A agreed to give warrantees to Fidelity for every REO property sold thereby taking the liability burden off the shoulders of title companies and put it squarely back on the servicers. You have no idea just how important this is to the wellbeing of the industry. A total shutdown of REO sales due to the non-insurability of the titles would have had devastating consequences for the housing sector and the national economy. Even Treasury Secretary Geithner commented on how bad this could prove to be for the housing market recovery. In the past few days it was revealed that all 50 states have launched coordinated investigations into the admitted wrongdoing of these loan servicers. Bank of America has halted all foreclosures nationwide while Citibank, GMAC and JPMorgan Chase halted their foreclosure activity in only 23 states where they had to go through the judicial process and they perjured themselves in courts with their filings. We suspect that at the end of the day the offenders will “cut a deal” with Attorneys Generals across the country. So, what does the future hold for the housing sector and investors? REO inventory may be scarce for a while, but it will be back. What was very promising, realistic or not, was the press release today by the National Association of Realtors that the mortgage market will return to a state of good health by the first quarter of 2012. Do you think they are right? Stay tuned.

Howard Blum is the founder and owner of The Financial News and Information Service. The Financial News & Information Service produces newsletters on a daily, weekly and monthly basis. The newsletters draw threads through what is happening in the national economy, where things may be headed and why.

Contact Howard Blum at 415-8984130 howard.blum@gmail.com

Nov. 2010 REI VOICE

T R E N DS

LENDING IS A MIX OF FEAR AND DOUBT YET THERE IS A SILVER LINING By Michael Ryan

Combining his 19 years of loan experience with his background in managing property, as well as new land development, and construction, Michael Ryan offers a unique insight into all aspects of real estate. A real plus in these day when many lender’s favorite word is no, when you want yes!

Silver Lining: Recession is a word that brings fear and anxiety; however, there is a silver lining. Interest rates are down and so are property values. It is the process of the market righting itself from fears of doom, the beauty of our free-market system, and the American way. So let’s stop looking at the fear and take time to find a new beginning in the midst of a healthy struggle. Real Estate: Prices have dropped to a point where in many cases, values are now below the cost to rebuild... Why is this good news? Because this is the point where smart investors like to enter the market – buying value. Interest Rates: Slow growth and high unemployment slows the demand for money thus lowering interest rates and monthly payments. How low? Lower than anyone thought possible. Rates are significantly below what they were in 2005. This represents a near 10% increase in purchasing power for home buyers and investors. Combined with current real estate values, this is a oncein-a-life time opportunity to own Silicon Valley real estate. Don’t miss out! Example: Owner-occupied prop-

erty I. Price: $ 500,000 with $100,000 down (20%) Mortgage Payment for 30-year, 400,000 loan at 4.75% plus tax and insurance (PITI) Monthly PITI: $2,657 Comparable Rent: $2,600 II. Price: $ 150,000 with $ 30,000 down (20%)

REI VOICE Nov. 2010

Mortgage Payment for 30-year, $120,000 loan @4.75% plus tax and insurance (PITI) Monthly PITI: $822 Comparable Rent: $ 1,100 Speculative Market: For distressed markets, the possible upside potential versus downside risks, makes this a market worthy of consideration. Investment

Property:

Loans are available although standards have yet to relax. Having said that, investor loans are accessible and application standards are quite similar, though how one measures the ability to pay is

different. A notable exception is FHA loans which are not currently available for investors. Lenders have a definate expectation of investment property having skilled management, stronger cash positions for customary repairs, as well as a better DTI (Debt to Income Ratio) to offset fluctuating cash-flows. Also, while lending for up to 10 mortgaged properties is generally still available, finding a single source to fund over 4 properties is a challenge. Do investment properties make $ense? The old “yes or no” standard was break-even cash flow with expected annual prop-

erty appreciation of + 10 %. Yet with today’s declining values, net positive cash flow is more critical as property appreciation has declined. In simple terms, “income” is back in income property. This means you can buy more income, with the same amount of money down, while appreciation is more suspect. Thus careful property and income evaluation, as a discipline, is needed to succeed, while rules of thumb are no longer acceptable. Contact Michael Ryan at 408-986-1798 mike@michael-ryan.com

Learn How to Invest in Real Estate With Your IRA or 401k A self-directed IRA from Entrust California gives you the freedom to invest in commercial property, rentals, rehabs, and more. As an IRA administrator, we will help to educate you on the choices available for self-directed investments, and how to achieve tax-deferred or tax-free growth. Entrust offers a full range of retirement accounts, so that you can invest in what you know best.

Get started today! Call Lamarr Baxter at (916) 509-7271. www.EntrustCalifornia.com

Find out how you can take advantage of a world of investment options.

Lamarr Baxter 9245 Laguna Springs Drive Suite 200 Elk Grove, CA 95758 phone: (916) 509-7271 fax: (916) 405-4000

Nov. 2010 REI VOICE

F E AT U R E

Social media By Aaron Norris

Aaron Norris is Vice President of the Norris Group where he is responsible for business development and production of TNG’s awards winning radio show, events, and educational seminars. Aaron is also principal at Palisoul, Norris, + Conroy, a marketing and strategy team based in Southern California and hosts of the marketing and business podcast, The Cocktail Party Statement. Thanks to Phil Palisoul and Karin Conroy for their contributions to this article.

The allure of social media is that it appears to be a cost-free method of communicating to a massive market. There are elements of truth in this: social media platforms tools like Facebook, YouTube, LinkedIn, and Twitter are free to sign up; and they command the attention of a large portion of society. However, it would be foolish to ignore the costs involved in developing and implementing a successful strategy, not to mention the waste of a poorly executed plan. Without clear planning, time and money can be wasted, and most importantly - the lost opportunity to win friends that influence people. The new face of the Internet has shifted power to the customer. While we’d like to think the buying cycle ends with a customer sale, web 2.0 platforms have empowered regular consumers with a keypad and an Internet connection to upset even the largest of Fortune 500 companies (see “United Airlines breaks guitar” on YouTube). One well-connected customer can either rave or rant your company to stardom or oblivion. It is critical to tap into the potential of your wellconnected customers and encourage the network effect of Word of Mouth Marketing. Most of us recognize the importance of these tools but get overwhelmed with either pulling the trigger or how to properly use these tools. Far too many people get hung up on the “How to” instead of the “Why to.” This issue is elegantly covered in one of our favorite books, The Groundswell by Josh Bernoff and Charlene Li of Forrester Research. While this book was writ-

10 REI VOICE Nov. 2010

ten in 2005, the content remains relevant and is a must read for all business owners planning on using social media within their marketing mix.

and tactics. Bernoff and Li introduce us to technographics which is a huge help pinning down online activities of our customers depending on region, age, and sex.

The POST Method

Objective: “Decide what you want to accomplish.”

The book does a great job of providing useful strategies that can be implemented by any company such as the POST method. POST stands for People, Objective, Strategies, and Technologies and is an easy to remember formula for properly selecting and implementing any new marketing venture. The key point in this method is to start with People and understand your customers before considering any type of technology. People: “Assess your customers’ social activities.”

Understanding the online behaviors of your customers helps you sharply focus on the most appropriate and profitable strategies

Sounds simple doesn’t it? Unfortunately, far too many take the throw-everything-at-the-wall-andsee-what-sticks approach, not taking the time to set goals to measure success or failure. Strategy: “Plan for how relationships with customers will change.”

Understanding your objectives and then carefully deciding how it is you want your relationship to change with your customer is extremely powerful. Do you want to engage in dialogue? Are you creating a forum to allow customers to help each other? How about letting them help you design your next product or service?

Technology: “Decide which social technologies to use to accomplish goals.”

Only once you understand your audience, what you want to accomplish, and how you expect your relationship with your customers to change should you pull the trigger on technology. Think of the time and stress you’ll save by selecting the correct technologies for your objectives instead of doing everything and hoping something magical works. If you’re stuck in the TSOP method, take a step back and review the above steps. If you need more inspiration, get the book and read of incredible examples of how companies have learned to harness these tools to create new customers and life-long fans. Contact Aaron Norris at 951-780-5856 aaron@thenorrisgroup.com

A NA LYS I S

Managing at the Margin By Sean O’Toole

W

hen I picture the wealthy real estate investors I’ve met over the years, I don’t picture lavish lifestyles, fancy cars, jets and the fabulous vacations you see pitched on late night TV. Instead, I see frugality. Olde r, reliable, paid for cars. Practical clothes…the kind you can crawl under a sink if you need to. And with a modest but comfortable home which, like their cars, is paid for. I think the same can be said for most successful entrepreneurs. They became successful by watching every penny, and reinvesting, rather than spending, their hard earned profits. A penny saved is a penny earned after all. Investing at the foreclosure auctions has been changing over the last year. Competition has become more intense, and I think the difference between success and failure is going to be careful management of costs. Many auction investors have done well on a 50/50 split for years, with the partner doing the work taking 50% of the profit, and investor putting up the cash taking 50%. With some groups having annualized returns of 50-80% this has worked well, and has kept everyone happy. Those huge margins have been dropping and I don’t expect them to return. If you’re the partner doing the work, you should be actively looking for cheaper sources of money. If your money partner is used to

getting 30% annualized returns, and your competitor is only paying 15% for capital, you will find yourself at a serious disadvantage. With the FED’s zero interest rate policy, lowering your capital costs should not only be doable, but it should be a top priority. Clearly there are other opportunities to cut costs as well. We used to buy prefab granite counter tops and cut them using a worm drive skill saw and a diamond blade. We could replace Formica counter tops with granite for about $1000. Calling out a granite shop to do custom countertops for that same kitchen would have been $5000. That $4000 savings meant that we could pay more at the court house steps then a competitor that used custom countertops. And, it doesn’t end with business costs. If your lifestyle costs twice what your competitor’s costs, they can beat you on every deal. More importantly, eating lunch out every day, going to Starbucks, and driving a nicer car then you really need may be the very things that, over time, have you kept you from building the capital you need to reach your real estate investing goals, and more importantly personal financial security. So as 2010 comes to a close, I suggest taking a look at your business and asking yourself what opportunities you have to reduce costs. Both to increase your competitiveness in the market, and to build greater wealth over time.

Prior to launching ForeclosureRadar. com, Sean O’Toole successfully purchased and flipped more than 150 residential and commercial foreclosures. Leveraging 15 years in the software industry, Sean used technology as a key competitive advantage to build his successful real estate investment track record.

Contact Sean O’Toole at 925-513-7175 info@foreclosureradar.com

Nov. 2010 REI VOICE

11

A N A LYS I S

HIGH TECH TOOLS REDEFINE CASH By Tom Wilson

12 REI VOICE Nov. 2010

120

100 PERCENTAGE CHANGE

Internal Rate of Return (IRR) 80 Cash/Cash Return 60

40

20

RENT RATIO

INTEREST RATE

PROPERTY TAX

PROPERTY MGMT

OCCUPANCY

INSURANCE

0 REPAIRS

Tom Wilson has been investing in real estate since the 70’s. He first invested as a parttime activity, and then after thirty years with some of Silicon Valley’s pioneering technology companies, Tom put his business and management experience toward full-time real estate investing. Wilson Investment Properties offers high cash-flow, fully-leased investment properties.

When analyzing investment properties, conventional thinkers knee deep in real estate dogma worry about property tax rates and property management fees and any number of other data points. However, a scientific approach to property data yields a far more accurate and simple buy/no-buy decision. Yes, science (specifically, sensitivity analysis) helped me identify the most important predictor of cash flow success of an investment. When I retired from my thirty-year Silicon Valley high-tech career in 1999 and went from part-time to full-time real estate investor, my goal was to replace my corporate salary with cash flow from rentals. In order to identify the highest cash-flow properties available, I needed to understand what factors to look for. I’d heard the conventional wisdom used in judging the strength of a rental property, but no one I met had an actual, proven, dispassionate, methodology. No offence, but gut feeling doesn’t guarantee a payday. In the scientific/engineering world it is common to perform a sensitivity analysis. This is a process where one tests varying independent variables to see which ones affect and by how much, the desired outcome. For example, one can vary a cell phone receiver bandwidth to determine the optimum signal to noise reception. Pulling a page out of my former career’s bag of tricks, I decided to apply sensitivity analysis to the problem of rental investment evaluation. The results yielded some surprises. The Cash Flow Sensitivity graph illustrates the relative importance of seven common property cost variables to cash flow. Using one typical property as an example, its cost variables are adjusted to reflect a 20% improvement (i.e. taxes 20% lower; occupancy 20% higher, etc.). For each variable, the cost improvement also reflects an improvement cash flow; however (and this is the key point), by vastly different orders of

 Cash Flow Sensitivity Percentage change to cash flow and IRR for a 20% change of each independent cost variable. Sample based on a 3br/2ba $125,000 home renting at $1,250/mo in the Dallas/Fort Worth area.

 Rent ratioS BY CITY based on median rents and median house prices as of Jan 2010

Nick of Time Results Team

FLOW ANALYSIS magnitude. Clearly a 20% decrease in taxes improves cash flow, but not nearly as much as a 20% improvement in rent ratio! So you can now see that you don’t want to purchase in a lower tax rate city for example, if that means settling for a much lower rent ratio. Cash flow sensitivity methodology was used to analyze hundreds of properties of all types from numerous parts of the U.S. and the conclusion remained the same: Rent Ratio is king. Interest rate is the second most important predictor of performance, but it doesn’t vary much from one property or region to another. Rent Ratio is the ratio of the monthly rent as compared to the property value [Monthly Rent/Total Property Investment or Value = Rent Ratio]. It was also determined that this ratio typically needs to be greater than .01 or 1.0% with a 20% down payment in order to yield positive cash flow, regardless of the region or price range. For example, a rental property with an investment of $100,000, after all costs are included, should have a minimum rent of $1,000 or 1% per month of the total acquisition cost. The second illustration shows how amazingly much the rent ratio varies from one MSA (Metropolitan Statistical Area) to another and gives you a first order guide to where the best cash flow regions and properties are without doing a complete analysis on hundreds of properties. Now you no longer have to guess or wonder about where and what to look for: just follow the numbers. In his book, Predictably Irrational, author Dan Ariely observes “We are all far less rational in our decision making than standard economic theory assumes.” By using rent ratios as a key component of rental investment decision making, we can base our buy/no-buy decisions on rational data and enjoy a more profitable and stress free buying experience. Contact Tom Wilson at 480-867-1867 tomkwilson@earthlink.net

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Nov. 2010 REI VOICE

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A DV I C E

14 REI VOICE Nov. 2010

Financial Lessons from the Ides of October

By Bruce Norris

During my three decades as a real estate investor, I’ve learned countless valuable lessons. Here are three that came in handy the final few weeks of October. 1. Solve you daily living expenses with positive cash flow.

Mid-October, the real estate market iced up in only 72 hours. Many real estate professionals counting on a closed escrow for their next pay day got a rude

awakening. The foreclosure process nearly stopped in its tracks. Just 10 days prior I was the keynote speaker for the annual meeting for the California Mortgage Association. I asked the audience if they were worried about the damage MERS might cause to the market. Out of two hundred attendees, only a few were even concerned (or aware) about what now has become the worst mess I ever witnessed. Covering monthly expenses with a positive cash flow portfolio gives you the time and resources to make careful and thoughtful adjustments to markets in transition. Those more exposed tend to make rash and abrupt decisions out of necessity and fear. 2. Set aside money for a rainy day.

Many investors earned lifechanging money in the years

from 2000-2007. Unfortunately, many kept rolling their profits forward, never taking enough chips off of the table to make a permanent difference in their long-term finances. The only reason some of us did this cycle is lessons learned from our experience from the early 90s. When the party ended, we were left holding the bag. 3. Never rely on just one method or technique of buying property.

If you went to the court house steps in September, you’d see a group of people who made a great living buying and selling houses. As I’m writing this article, this entire group has had the only method of finding deals taken from them and at no fault of their own. Many rely on just one “Buying System” to make their living. It’s been my experience that markets can change abruptly. In

2004 through 2006, The Norris Group made big profit building new homes. In 2007, that opportunity disappeared entirely as REOs gradually took its place. A sudden change in the appraisal world in early 2009 made that niche less attractive in our area so we shifted gears and began buying at the trustee sales. That niche is currently on hold as we wait to uncover the ramification of the moratoria. For The Norris Group, it won’t be critical, but for many unprepared investors, it could severely affect their finances. Three lessons: Live off of cash flow, save your profits, and learn multiple ways to buy wholesale deals. Do these and you’ll put the odds in your favor that success will be yours.

Bruce Norris, founder of The Norris Group, is an active investor, hard money lender, and real estate educator with over 29 years experience. Bruce has been involved in over 2,000 real estate transactions as a buyer, seller, builder and money partner.

Contact Bruce Norris at 951-780-5856 bruce@thenorrisgroup.com

Nov. 2010 REI VOICE

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A DV I C E

NAVIGATE THE NOTE BUSINESS WITH YOUR IRA By Lisa Moren Bromma

Lisa Moren Bromma is the author of Promote Your Note Business, a marketing program for the private mortgage industry, Soup to Nuts, a CD ROM series on everything you need to know to become a successful real estate investor, as well as Real Estate Investing for The Utterly Confused and Wise Women in Real Estate.

One of the strategies that is on the rise is using your self-directed IRA or 401(k) to grow your portfolio with paper investments. What is paper? Paper is an IOU, a promise being made from the person who needs the money to you, the person who is lending the money, with the terms of how they will pay you back. If an investor lends money secured by an asset, the IOU will also have a security document like a mortgage on a piece of real estate. If the borrower defaults, then the security instrument, the mortgage, gives the investor the right to take back the property. Paper can include houses, cars, boats, planes, businesses—you name it. I have even seen cemetery paper! Paper can be secured by assets like the ones I just mentioned, or unsecured as in a loan with no collateral at all. Private mortgages are bought at a discount off of the face rate of the loan. Here is an example. Sally sells her home to Sue and takes back a second mortgage for $10,000. Sally will receive $132.15 for 10 years at 10% interest. Should

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Sue not make her payments, Sally could foreclose and take the property back. Sally would rather have a lump sum than take payments, however she needed to sell her home and this was one way to do it quickly. Along comes Mary who offers to buy Sally’s seller financed note. However, in order for it to make financial sense to Mary, she cannot pay $10,000. She offers to buy the payments for $7,000 cash today. This is a 30% discount. Mary gets the right to receive the payments, Sally gets cash, of course not all of it but she feels it was worth the discount. Sue makes her payments to Mary instead of Sally. I have simplified this process to illustrate how seller financing, or buying notes at a discount, works. If you would like more recommended reading on this subject, please email me. Back in the mid to late 80s seller financing was very popular. However, when interest rates came down, more people were able to qualify for commercial loans, so seller financing dried up. Today, seller financing has made a comeback. One must be very careful when using personal or IRA funds

to purchase a seller financed loan at a discount in today’s market. This investment is not for everyone. Private lending to others is also on the rise. Most people look at private lending as lending money to family or friends who need the money to say, buy a car. However, there is a large potential opportunity for private lenders who want to participate in an investment by lending money that is used to acquire an asset. Or the investor is lending money to someone to start a business. There are as many ways and reasons why investors make loans to others. Many investors lend money out of their IRA or (k) plan to others to get a higher return on their money than they could get with conservative investments such as a money market account or CD. Of course, when you self-direct your IRA or Individual (k) you, the IRA owner does the work—you identify the investment, you do the research, you instruct your administrator to make the purchase on behalf of the IRA or (k), and you get the profits or income back into your retirement plan tax-deferred

or in the case of a ROTH, tax-free! It’s no wonder that others are utilizing OPI (other people’s IRAs) to help them accomplish their dreams. Many investors prefer to use paper as their investment of choice instead of real estate. In the paper business, investors evaluate which is better: 1% in a savings account or investing in paper at rates that will be higher then 1% (of course the return will be greater than 1%–I am using this for illustrative purposes only) They also ask themselves “which is better for me; greater than 1% tax deferred or 1 % that you pay tax on?” If you came up with 1% taxdeferred, than using your IRA or (k) plan is right for you! Investing in paper whether through lending or purchasing notes can make sense to an investor who understands what he/she is getting into, does the required due diligence necessary to protect themselves and their retirement accounts before making the investment, and sees the value of alternative investing. Contact Lisa Moren Bromma at lmorenbromma@gmail.com

MILES/BARRY CONTRACT FURNITURE Workplace solutions to fit your business

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Nov. 2010 REI VOICE

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A DV I C E

ASSET PROTECTION – A Common Sense Approach By Jeffrey B. Hare “Asset Protection” – sounds good. Where do I get some? Investors are often advised to “protect their assets;” most commonly by setting up limited liability company (“LLC”) or other corporate entity. Using an LLC can be an effective tool as part of an overall investment strategy, but there are other important factors to consider. Let’s start by asking “What is an “asset?” Webster defines “asset” as property that is subject to debt. The Latin origin comes from the word “satis” or

18 REI VOICE Nov. 2010

“enough.” In other words, an “asset” is something of value that is more than “enough” to satisfy one’s debts and liabilities. New investors are often convinced that in order to be successful, they must set up elaborate “asset protection” schemes to avoid “losing everything.” Frightened by unscrupulous vendors who warn of pending financial disasters, gullible investors are often duped into paying thousands of dollars to establish complicated corporate entity structures in the name of “asset protection.” Asset protection is a valid concern. But I recommend a common sense – and less expensive – approach.

The first step is to distinguish between an asset and a liability. Do the math. An investment property is a real estate asset if it is worth more than all of the costs and expenses associated with that property. The combination of appreciation and rental income must be greater than the combined mortgage debt, maintenance and repair costs, taxes, insurance, commissions, and fees associated with that property. If not, it is a liability. For example, your home may be very valuable for a number of reasons, but if it isn’t worth more than the combination of the mortgage(s), taxes, insurance, maintenance and upkeep costs, it technically is not an “asset.” For your home, it’s fair to consider your spouse’s preferences, tax considerations, and proximity to the local school district, but this doesn’t make it an “asset.” Second, make sure your asset is properly managed. If you own a rental income p r o p e r t y, you should engage the services of a professional property manager, who will take steps to ensure that the property is in maintained good condition and free of hazards. Prevention is a key component of lim-

iting your exposure to liability. The third step is to obtain and maintain adequate insurance coverage, both for the property and for yourself. In addition, consider making it mandatory for your tenants to obtain renter’s insurance. It’s inexpensive and provides coverage for damage to the tenant’s personal property and relocation expenses not covered by the owner’s policies. A tenant who is covered for losses is less likely to pursue you for damages. Fourth, evaluate the pros and cons of using a LLC for your investment property. A properly established and maintained LLC provides a degree of “asset protection” against claims by creditors, and may help facilitate accounting issues, but you need to consider both the real costs and tax consequences. Also, some California investors fail to realize that a foreign (i.e., Nevada, Delaware or other out-of-state) corporation may be subject to California laws, registration and reporting requirements. (Corp Code §2115). In the long run, it may not be advantageous or less expensive for a California resident to set up a foreign LLC. Fifth, do it right. Nothing makes a creditor’s job easier to “pierce the corporate veil” and go after personal assets than sloppy records, suspended corporate status, or inadequate capitalization. If you’re going to set up a corporate entity for “asset protection,” treat it as a business, not a hobby. Consult with professional legal and tax advisors. Remember, it’s your asset – protect it! Contact Jeffrey B. Hare at 408-279-3555 Jeff@jeffreyhare.com

Jeffrey B. Hare, Attorney at Law, provides outcome-oriented legal services to real estate investors, commercial and residential property owners, and real estate developers. As an land-use attorney and real estate investor, Mr. Hare provides clients with a pragmatic but thorough approach to due diligence, contract review, and negotiations.

B AS I C S

WHO WILL RECEIVE YOUR REAL ESTATE LEGACY? By Nancy Chillag

Nancy Chillag is an attorney with over 25 years of experience. She is also a certified public accountant and real estate broker. She works closely with real estate investors and small business owners to protect their assets and families through estate and business planning.

As real estate investors we spend years researching the best markets, buying the ideal properties, screening for proper tenants and making improvements to increase value. Some of us carry around pictures of our properties much like we do our children and grandchildren. We talk about our investments as though they were part of our very being. Why do we do this? Well, obviously to provide ourselves with a nice income, a means of comfortable retirement, and a legacy to pass on to our family. But who will receive your legacy? You probably assume that when you die your spouse will take over managing the properties and receive the benefits, and when your spouse dies, your children will reap the benefits. While your assumption is generally correct, the time and cost to make that happen can be extensive, leaving a fraction of your legacy for your children and

future generations. Depending upon how you title your real estate and other investments, it may be necessary to Probate your assets to pass them to your spouse at your death. But even if you avoid Probate at your death, you won’t avoid it at your spouse’s death. What is probate? Probate is the legal process by which the court orders the title of property to be transferred from you to your beneficiaries. If you have a Will, the court will review it and pass the property accordingly. If you don’t have a Will, the court will transfer the property in accordance with the state’s rules. Properties in multiple locations will require that a Probate will be opened in each state. How much does probate cost? Probate costs include appraisal fees, Personal Representative fees, court costs, Probate Referee fees, surety bonds, and legal and accounting fees. You can plan on easily spending 5- 7% of the

gross estate. So a $2,000,000 estate could cost $100,000 - $140,000 to transfer the assets to your spouse, and after the ultimate transfer to your children, your total lost estate could reach $280,000! How long does probate take? In California, the average estate takes 7–9 months to get through Probate, if all goes well. If there is a Will contest or some other lawsuit or complication, all bets are off – it could take years. Even the sale of real estate can delay the process by months. Many states have summary procedures for small estates that are faster and less expensive, but that probably won’t be available for your estate. Does anyone else get a part of your legacy? – Probably. If you failed to properly plan, the IRS will be standing right there with their hand out. You probably won’t pay any estate taxes when your property passes to your spouse, but you won’t be so lucky when your property ultimately passes to your

children. How much are estate taxes? Starting in 2011, you can give away $1,000,000 at your death without estate tax. Anything over that is subject to a tax rate of 55%. So how much of your $2,000,000 legacy will actually pass to your children? After Probate and estate taxes, you’ll be lucky if they get $1,300,000! Failure to plan means your legacy will be shared with the IRS, the courts, and others that you did not intend. With proper estate planning, your children could actually inherit everything you have. This involves working with an attorney, setting up trusts and perhaps other entities in order to avoid probate fees and estate taxes. This process will cost you money now, but it will cost you far, far less than what your current plan will cost you in the future. Contact Nancy Chillag at 650-321-9796

Nov. 2010 REI VOICE

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Pebble Beach REI A

B O U T I Q U E

B R O K E R A G E

F I R M

» Help Property Owners Liquidate or Transfer their Real Estate Holdings » Private Money Loans » Full Service Real Estate Brokerage for the Home Buyer and Seller

Stuart Baeriswyl REAL ESTATE BROKER DRE#: 01807909

As the Executive Director and Co-Founder of the SJREI Association, let Stuart Baeriswyl be your all-purpose Real Estate Broker.

P H O N E : 4 0 8 . 3 7 3 . 676 6

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branding. marketing. traditional & digital. SusanHareMarketing.com 20 REI VOICE Nov. 2010

408-391-8068

Susan@Hare.com

BASICS

YEAR-END TAX PLANNING Year-end tax planning opportunities have increased this year because of all of the new tax laws that have been signed by the President. I recommend a basic strategy that says defer income to next year and accelerate deductions that will benefit you this year. Another recommendation is that you review the following tax strategies to determine if any would help reduce your 2010 tax liability. By Richard Smith

Richard Smith, who is an Enrolled Agent and licensed by the IRS, and his team have prepared taxes for individuals and corporations for more than 30 years. Richard is an active real estate investor who has more than 100 houses in his portfolio plus a large multi-family building.

1. Prepay California income tax to increase federal itemized deductions 2. Prepay January house payments for residence and rental properties 3. Prepay income tax preparation fees 4. Use your automobile for charitable organizations (14 cents/mile) 5. Sell stock for losses this year (Maximum deductible loss is $3,000) 6. Charitable donations-cash and non-cash 7. Prepay for travel expenses for business purposes 8. Prepay property taxes due next April for both residence and rentals 9. Invest in T-Bills or CD’s: interest is taxed next year 10. Open and fund your personal retirement plans: IRA, 401K, SEP-IRA 11. Start your part-time business this year to deduct start-up costs 12. Prepay childcare expenses (Maximum $3,000/child) 13. Establish proof of bad debts to claim bad debt deduction 14. Accelerate payment of miscellaneous deductions if more than 2% AGI 15. Increase medical expenses if you can exceed the 7.5% AGI 16. Deduct job-hunting expenses, even if you don’t change jobs

17. Prepay expenses such as professional organization dues & trade publications 18. Defer income until next year from bonuses, commissions and salary 19. Consider tax impact of delaying or speeding up marriage or divorce 20. Tuition deduction is $4,000 max or $2,500 max tax credit 21. Gifts of $13,000, shift interest income to children 22. Tax-free exchange to defer gains on sale of rentals 23. Energy credit for home improvements is $1,500 max 24. On stock sales, long-term capital gains incur tax rate of 10-15% 25. Adoption credit is $12,150 max 26. Purchase business equipment & deduct up to $250,000 27. Plan to file early & use refund to fund SEP & IRA 28. Prepay estimated taxes to avoid underpayment penalties 29. Increase withholdings to avoid under payment penalty 30. Pay for rental property expenditures & repairs 31. Pay for year-end entertainment & gifts for business clients 32. Purchase business & office supplies, stamps, & envelopes 33. Purchase a passive income investment to offset passive losses 34. Prepay January office rent

35. Pay for business auto expenses (repairs, tires, battery, insurance, & motor club dues) 36. Defer December rental income until January 37. Enroll in employer provided taxdeferred programs 38. Invest in tax-exempt bonds or taxfree mutual funds 39. Preserve exemptions for dependents (Deduction is $3650) 40. Pay your children & spouse for time spent working for your business or investments 41. Sell your passive loss activities to deduct suspended passive losses 42. Determine if you own worthless stocks that you might deduct 43. Buy a real estate investment that can provide depreciation & taxsheltered income 44. You may be able to claim parents as dependents, if you help support one or both 45. Prepay educational expenses to maintain or improve job skills 46. Pay for investment expenses for advisory & management fees & safety deposit box 47. Start and fund a Health Savings Account. Contact Richard Smith at 408-446-5551 rsmithtax@aol.com

Nov. 2010 REI VOICE

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BASICS

THE ENTRY LEVEL INVESTOR: Serving Northern & Southern California Thrasher Termite & Pest Control, Inc. has been serving the Santa Clara Valley and the neighboring communities since 1979. We work closely with local Realtors, Property Managers and Homeowners to solve your termite and pest control problems. Our prices are competitive and reasonable. We are proud to say we perform all repair work and all termite treatments with our own in-house state licensed technicians.

If the bugs come back ‌ so do we

408-354-9944 www.ThrasherTermite.com 22 REI VOICE Nov. 2010

Top four reasons to consider buying now As an investor himself, Stuart Baeriswyl, of Pebble Beach REI makes good use of his understanding of the various markets in Northern California to help other investors locate and purchase solid cash flowing rental properties. Stuart has been providing his professional services for many types of buyers and sellers, translating his unique real estate investing skill-sets into helping regular home buyers and sellers complete their personal residential property transactions.

By Stuart Baeriswyl

W

hat are you waiting for? If you haven’t yet pulled the trigger on investing in real estate, you’ll never find a better time to enter the market. Prices are low, properties are available, interest is below 5%, and with the internet, all the information you could ever need is immediately available. Best yet, this is the California market we are talking about. 1. Low Prices. Whether you are

buying an investment property or a home to live in, prices for all types of residential and commercial property are now at 2001 levels for Northern California. Specifically, investment grade residential income property has stayed down in many California Counties and many units are available for half of what they sold for 4 years ago. What this means for the real estate investor is that there is a large pool of right-priced units that can work as rental income property in many of the nicer areas of California, areas that were once too expensive to make it work. 2. Available Inventory. At start of 2009 there was a significant decrease of investment grade inventory and the problem persists. However, decrease does not mean zero. Between people who just want to move, investors who want to sell,

spec properties sitting vacant, and foreclosures, there are still real estate deals to be made. One has to be patient and persistent in locating and winning a purchase. It takes a little more effort now, but at these prices, it’s worth it. 3. Low Interest. Whether you are

trying to flip rehabs for a quick profit or interested in buying to hold for income and appreciation – the cost of money is very low. To get the best rate, plan on putting down 20% or 25% in cash. It’s worth it to get a nice residential property to rent. The rental cash flow will cover your loan payments as your renters build your equity. This conservative approach is a sound way for new investors to get started. 4. Resources at Your Fingertips. Often times new real estate investors are younger and very comfortable around a computer. It may surprise you that as little as 6 or 7 years ago, the internet usefulness for real estate data was quite limited. Now, however, the new investor has a tremendous amount of power at his or her disposal. Not only is the volume of data amazing, but it is now presented in easy to understand and helpful ways. Be careful though 1) don’t get so overloaded with data that you fail to act, 2) don’t trust everything you come across. Vet your information with other, trusted investors and professionals.

APR 6.00 5.50 5.00 4.50 4.00 3.50 3.00 FEB

MAR

APR

MAY

JUN

JUL

 30-year Fixed National Mortgage Rate Trends and Averages provided by Information Research Services, Inc. Updated Monday, July 12, 2010

Best of the Web Realestate.yahoo.com Foreclosureradar.com Finestexpert.com Realtor.com

It really does come back to the basics. Do your research, pencil the numbers, and take the plunge. Many new investors want property within driving distance of their homes, but the cost of California real estate has been prohibitive. Not anymore. If you can’t find something now in your budget and with the right upside, you never will. So get going! Contact Stuart Baeriswyl at 408-373-6766 pbrei.stuart@gmail.com

Nov. 2010 REI VOICE

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Resources Accountin g

SOUND OPINION—WISE DECISIONS: VOICE OF THE PROFITABLE REAL ESTATE INVESTOR

Michael Gray, CPA 408-918-3162 mgray@taxtrimmers.com www.realestateinvestingtax. com

HELP REAL ESTATE INVESTORS HEAR YOUR VOICE — ADVERTISE IN REI VOICE MAGAZINE TODAY

Richard Smith & Associates Richard Smith 408-446-5551 rsmithtax@aol.com www.richardsmithtax.com

B rokerage/ Agents Pebble Beach REI Stuart Baeriswyl 408-373-6766 pbrei.stuart@gmail.com www.pebblebeachrei.com Howard Bloom 650-605-3928 www.howardbloom.com

Contact Nobuko Isomata

Silicon Valley REO Jason Chan Lee 408-998-1300 jason@svreo.com www.svreo.com

650-922-1786

Nobuko@REIVoice.com

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Chuck McCay 408-836-1091 chuck@chuckmccay.com www.chuckmccay.com

Financial Advisors

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24 REI VOICE Nov. 2010

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Bay Area Planners David Beck 408-725-7135 info@ retirementplannersonline.com www.retirementplanner online.com

I nsurance Brighton Financial Group Vernon Williams 408-931-6582 vwilliams@farmersagent.com www.farmersagent.com/ vwilliams

I nvestment Properties

Mortgag e Consultants

The Norris Group Aaron Norris 951-780-5856 aaron@thenorrisgroup.com www.thenorrisgroup.com

Michael Ryan & Associates Michael Ryan 408-986-1798 mike@michael-ryan.com www.michael-ryan.com

Stonecrest Investments LLC Steve Freeman 408-557-0700 www.reo4sale.net Summit Solutions Team Corp. Lori Greymont 408-891-2983 lori@summitsolutionsteam. com www.summitsolutionsteam. com Wilson Investment Properties Tom Wilson 408-867-1867 tomkwilson@earthlink.net www.tomwilsonproperties.com

IRA Entrust Administration Inc. Lamarr Baxter 916-509-7271 www.entrustcalifornia.com/ oakland IRA Services Trust Company Michael McNair 650-593-2221

Legal Services Chillag & Associates, P.C. Nancy A. Chillag 650-321-6796 nancy@chillag.com www.chillag.com Earle Law Offices, APC 408-786-1060 www.earlelaw.com Jeffrey B. Hare, APC 408-279-3555 Jeff@Jeffreyhare.com www.jeffreyhare.com

Other S ervices Chiropractic First Dr. Josh Ben 408-559-1662 chirohealthfirst@gmail.com www.chiropracticfirst.com Certified Dream CoachÂŽ Mary Botham 650-868-2383 marybotham@comcast.net www.GetABiggerDream.com Susan Hare Marketing 408-391-8068 susan@hare.com www.susanharemarketing.com Okubon Management Nobuko Isomata 650-922-1786 Thrasher Termite & Pest Control Inc., Janet Thrasher 408-354-9944 info@thrashertermite.com www.thrashertermite.com

Research Foreclosure Radar Sean O’Toole 925-513-7175 info@foreclosureradar.com www.foreclosureradar.com

S hort Sales Nick of Time Results Team Natalie Knowlton 831-402-5107 natalie@ NickofTimeresultsteam.com www.NickofTimeResultsTeam. com

Stonecrest

‘NEVER BEEN A BETTER TIME TO BUY!’

INVESTMENTS

DIRECT WHOLESELLER NO MIDDLE MAN NO BROKER FEES Current market conditions present a unique opportunity. Qualified investors can purchase bulk packages of foreclosed properties. Stonecrest Investments, LLC, purchases REO properties in bulk directly from national banks at a discount and resells them wholesale to qualified investors. We assist our investor group by offerring a well-designed support package that includes direct services, connections to important resources. A step-by-step guide which outlines how to maximize their ROI on their REO Package.

CAPTURE THE REO WINDOW BEFORE IT’S GONE. CALL US TODAY FOR YOUR FREE CONSULTATION !

1-888-271-7703 ELIZABETH CORTEZ Asset Manager lcortez@stonecrest.net 1-888-271-7703

THERE HAS NEVER BEEN A BETTER TIME TO BUY REAL ESTATE! Call me to get in now while prices are cheap!

We currently have properties in Salt Lake City, UT. & Orlando Florida. Investment Properties in Jackson, Mississippi & Coral Beach, Florida are Available. Must have decent credit and a down payment • Owner financing available • Conforming to S.A.F.E Act Regulations • Discounts available to the first five buyers We specialize in single family residences • Turnkey investment opportunity - houses in good condition, rented with good management in place

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415-559-9768

Long Term Care Tax Saving Strategy Settlement OKUBON MANAGEMENT Call for Information: 650-922-1786 Nov. 2010 REI VOICE

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Ger’s Top 5 by Geraldine Barry

Top 5 Benefits to Investing in Real Estate:

1 2 3

Inflation Hedge: Real estate is a hedge against inflation. Everyone needs shelter and despite the digital age, there are plenty of businesses that require bricks and mortar. When costs rise, so does rent—your hedge against inflation.

Cash Flow: With real estate, you don’t have to wait for a dividend check that may never arrive. After all expenses have been covered (mortgage, taxes, repairs, property management etc.) smart commercial and residential property owners realize monthly cash flow. Tax Benefits: Thank you Federal Government for supporting property ownership. Real estate property taxes paid for a first home are fully deductible for income tax purposes. On investment properties, operational and selling costs are deductable. And, everyone but dealers in real estate may depreciate their investment properties when filing annual tax returns—a nice shelter for high income individuals.

4 5

Flexible Options: You have a variety of options to maximize your investment. Real estate can be held, sold, rented, exchanged, and borrowed against. It can be rebuilt and rezoned. Best yet, you are the architect of your options.

It’s Tangible: Real estate is…REAL! You can touch it, visit it, live in or on it, and it is finite. The earth only holds so many square meters of land. It will not evaporate like stock and internet start-ups, and is intrinsically more useful than gold.

Real estate is a wonderful tool to help you achieve your financial goals, particularly retirement with a long-term horizon.If one invests wisely in cash-flow properties or those with long term appreciation potential, the investment is a true wealth-builder. The key is to invest wisely, and that means education from trusted experts is critical to your success.

Geraldine Barry is founder and president of SJREI Association, the premier educational and networking association for real estate investors in Silicon Valley. Under Geraldine’s leadership SJREI has grown from a half-dozen investors to a vibrant three chapter organization with over 400 investors attending monthly meetings. She has interviewed many real estate pros such as Bruce Norris, John Schaub, and Robert Campbell all of whom have been guests of SJREI. In addition to leading SJREI, Geraldine is an active real estate investor, guest host of the radio program, “Going Beyond Real Estate,” a frequent guest on the nationally broadcasted NTDTV and Publisher of REI Voice Magazine.

26 REI VOICE Nov. 2010

NEVER BEFORE seen together:

BRUCE JOHN NORRIS & SCHAUB Hear two different philosophies from the best – Bruce Flips, John Buys & Holds! Two Day Event- Friday & Saturday

November 5th & 6

Wyndham Hotel 1350 North 1st Street, San Jose, CA 95112 Nonmembers- $629 per person Members- $595 per person Hotel Rooms available for $79/night (includes breakfast)

For more information and to sign up for this event go to www.sjrei.net or call 408-264-3198

THE CREDIT RESTORATION EXPERT HANNAH FLIEGEL FICO Pro

The current economy has left investors reeling – Hannah has the expertise to assist with increasing your credit score. PRE-PAID CREDIT CARD $29.95 Discount for SJREI members $399.00 for credit repair program. Protect your credit profile with LifeLock for $99 per year.

CALL FOR DETAILS

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Nov. 2010 REI VOICE

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BE A PART OF SOMETHING AMAZING! BECOME A MEMBER TODAY (408) 264-3198 or www.SJREI.org

W

hether you have yet to purchase your first investment property, or are working on your hundredth deal, you’ve found the bay area’s source for sound, principled advice and networking. As investors ourselves, we understand the challenges that investors face, and customize our programs to address reallife situations and scenarios.

NETWORK WITH INVESTORS, BUYERS, SELLERS, AND THE PEOPLE WHO SUPPORT THEM

MEMBER BENEFITS

THREE CHAPTERS

Hear the best speakers, get the best advice Our educational meetings are delivered by recognized experts in their field. They keep you up to date on issues such as market timing, new legislation, and techniques that may affect or enhance your real estate investing.

EXECUTIVE MEMBERSHIP

PREMIUM MEMBERSHIP

Annual Membership Dues

$500

$225

Additional Member*

$350

$200

1

1

BENEFITS

All successful people rely on a network. Bringing like-minded people together to share information, assistance, and resources is a core goal of our chapter meetings.

STAY MOTIVATED, AVOID PITFALLS Who but another investor understands the doubts, challenges, and successes of real estate investing? SJREI Association fosters a positive climate of mutual support and sound advice. Your questions are respected, your participation is valued.

• South Bay • East Bay • Mid-Peninsula Membership entitles you to free admission to your local chapter’s monthly educational and networking programs and much, much more.

Guest passes (use at any chapter meeting) Free registration & attendance at local chapter meeting Network with other investors at each event Free registration & attendance at all chapter meetings: Mid-Peninsula, San Jose, East Bay Invitation to annual Leadership roundtable VIP seating at registered events Personalized name badge with expedited event check-in On-line community: member profile, read and post messages on message boards Hundreds in discounts for goods and services through National REIA affiliation Discounts on workshops and special events Invitation to Quarterly Insider Luncheon Audio library of past events New member orientation

THE BAY AREA’S MOST DYNAMIC INVESTORS ASSOCIATION 28 REI VOICE Nov. 2010

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