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www.realty411guide.com | Vol. 4 • No. 1 • 2011 A Resource Guide for Investors

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Discover Why Investors Around the World Trust

The Leaders of the Memphis Market Understand the Needs of Long-Distance Landlords

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Realty411Guide.com PAGE 3 • 2011 reWEALTHmag.com

Realty411 - Real Estate Wealth is published in Santa Barbara County by Manifest Media Partners (550 Pine St., Solvang, CA 93463). ©Copyright 2007-2011. All Rights Reserved. Reproduction without permission is strictly prohibited. The opinions expressed by writers and columnists are not endorsed by the publishers and/or editorial staff. Before investing in real estate, seek the advise-ment of a trusted financial adviser, attorney or tax consultant. Real estate investing is risky & may result in loss of capital. Please invest responsibly.PRINTED IN THE USA. GOD BLESS AMERICA Connect to our virtual network ~ online 24/7/365

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contents10 An interview with Sam Sadat, the director of Sam’s Real Estate Club.8 and 22 Top Secrets from master investor and educator Dave Lindahl.13 Guild Mortgage clarifies misconceptions about financing.

15 Invest with the Best, Invest with MemphisInvest.com.19 Entrepreneur/Investor Kent Clothier takes the road less traveled and succeeds.20 Black Belt Investors teaches us how to master the art of the flip.

24 True Wholesale Houses delivers steady returns for investors in a volatile industry.27 Market Spotlight: Kevin and Alex are at the forefront of multiple top South Eastern markets.29 Tyrone Jackson wants to diversify your real estate portfolio with stocks.

30 Christian and Ruth teach Southern Californians their property rehab secrets. 33 Richard Barrett asks: What is your real estate time?34 In memory: Fred Tingley’s last real estate column.35 Market Spotlight: Phoenix, Ariz.36 Top 20 excuses for failure.38 Gary & George’s Monopoly Secret39 to 53 Meet the Hip Real Estate Divas of Today:Powerful gals in the industry give their advice and tips.54 Maximize your legal protection57 Inside the cashflow board games58 Tom Wilson gives his insight on the market recovery.

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Photo credits top right and clockwise: Sam Sadat, Tyrone Jackson, Terica Kindred, Kent Clothier and Jay Hinrichs

WE UNDERSTAND THAT EACH REAL ESTATE INVESTOR HAS THEIR OWN GOALS AND TARGETS FOR RETURNS ON THEIR INVESTMENTS. We have tailored our programs for your goals. Our innovative programs have been put to the test and can be put to work for you. Discover which program is best for you.

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Wouldn’t you love to discover how to make $9,700+ in passive income month after

month… and how to reap huge positive cash flows from real estate – with less risk, less money down, and no tenant headaches?

I’ll tell you what, if you want to collect an automatic monthly income of $9,700 or more -- without having to get up ev-ery morning and “go to work” – then you need to know that most real estate ex-perts are giving you the wrong advice!

See, they rave about buying and selling single family homes, but they don’t tell you about the risks and downsides. They

don’t admit that single family homes are poor investments for passive income... for attaining real financial freedom.

Now don’t get me wrong, if you can wait a few years for your upside, single family homes have a history of appreci-ating nicely. And if you’re happy making one-shot profits, flipping houses can be an exciting business. Over the past eight years, I myself have bought, rehabbed, and/or sold 422 houses. If you can pull it off (despite the risks), you can make a big profit in four to six months. It can be a good business model. But it’s not financial freedom.

When you’re flipping houses, you’ve got to keep working to earn your next “paycheck”. You’ve got to keep market-ing, buying, renovating, and selling.

This is the life of a “house flipper”; 1) You’re at the mercy of contrac-

If Single Family Homes Are Such Great Investments, Why Do Most ‘Investors’

Still Go To Work Every Morning?

tors. Most bargain homes are in disre-pair. You’ve got to renovate them, but most contractors are unreliable. You’ve got to oversee everything they do, or risk paying for their mistakes. And the good ones are always booked up for months in advance.

2) You lose money for four to six months. That’s how long it takes to fix up a house and resell it. When your con-tractors drag their feet, you’re left help-less and stressed out. Every day your house sits vacant, your bank account is further depleted by loan payments, taxes, insurance, and utilities.

3) Your job never ends. When you finally sell, you’ve got to start all over again, marketing, negotiating, and over-seeing your contractors. If you take time off, or can’t work for awhile, you have

no income. That’s not financial freedom.

4) The government takes 33%-50% of your profits! When you hold houses for less than a year, your profits are taxed at the painfully high rate of “ordinary income”. Com-pared to my approach, you have far less cash to roll into the next property. The result: it could take you twice as long to attain financial independence.

If you’ve read the best-selling book Rich Dad Poor Dad, you understand that income-producing assets are the key to financial freedom. You also know that Robert Kiyosaki (the book’s author) built his personal fortune through buying and holding real estate.

Unfortunately, Kiyosaki doesn’t go into detail about how he selected, man-aged, or sold his properties. That’s why I’m writing, “The Real Secret…Apart-ment Buildings And How To Manage 642 Units With One Phone Call Each Month!”

Today, I own 33 multi-family apart-ment complexes, with 7,322 units in all. Yet, I never deal with a single tenant, their complaints, any repairs, or vacan-cies.

My carefully chosen property manag-ers handle 100% of the tenant manage-ment. I have one phone call per month

When you’re flipping houses, you’ve got to keep working to earn your next “paycheck”.

by Dave Lindahl


with each of them; that’s it. Last year, I sold four of my proper-

ties. After paying off my loan balances, I received four separate checks for over $200,000 apiece. And I used a legal tax loophole to pay zero taxes on three of them. I can show you how to do the same. Why haven’t you heard more about apartment buildings? Because apartment investors don’t want the general public to know about their suc-cesses. Apart-ment investors a r e a l r e a d y wea l t hy. Ju s t look at the late Red Auerbach of the Boston Celt-ics. He made his real money buy-ing apartment buildings, then branching off into hotels. Like-wise, Arnold Schwarzenegger made his first fortune buying apartment hous-es in Colorado.

Here Are The Biggest Advan-tages That I See In Apartment Investing:

1) Apartment buildings are “cash cows”, especially when compared to sin-gle family homes. For example there is a six unit building I own in Brockton, MA, that nets me $1,877 per month (after all expenses)! Think about it, more units in each property brings you more income.

2) You start profiting instantly. Rather than being drained for 4-6 months, car-rying the costs of a vacant house, you enjoy positive cash flows from day one. And you can live off that income, so you don’t have to go to a job everyday!

3) Build huge equity and live off the cash flow. If you live off the income from bonds, CDs, or mutual funds, infla-

tion devalues your principal. But when your buildings appreciate and your ten-ants pay off your loans, you create huge equities, and eventually own them free and clear.

4) Hands off management. Because apartment houses offer so much income, property managers charge an average of

just 4% of the gross rents (versus 10% for single family homes).

5) Cut your taxes in half. Instead of paying 33-50% in taxes, you’ll pay the low capital gains rate (now 15%).

Seventeen years ago, I was fortunate to have a mentor that showed me the truth about apartment investing and he was there to take my hand and get me started!. Now whether you have ever invested in real estate before or if this is just something that you have always thought about doing, I would love to take your hand and share with you the exact strategies and processes that have made me a multi-millionaire.

Fortunately for you, I have created a very successful but limited mentor-

ship program. It’s aim is to take you by the hand and share with you the proven tools you need to be successful in invest-ing. But with everything in life there is of course a catch. And the catch is that I can’t work with everyone. There isn’t enough time in the day. But my strate-gists and I can work with a select group of people.

There is no better time than right now to find out if you qualify for the mentor-ing program. To take my brief question-naire to determine if apartment investing is right for you and to see if you qualify to become one of the lucky few people I will mentor, visit Rementor.com/Re-alty411, do it now.

My mentor made me promise that when I became successful, I would pass on my knowledge. I hope you are one of the few people I take under my wing to share these powerful techniques. Receive Dave Lindahl’s free report, call 800-559-8590 or visit: www.DavesOffer.com/Realty411To read more about Dave and hear a stu-dents success story visit: www.Rementor.com/Realty411


Mr. MotivatorThe founder of Sam’s Real

Estate Club in Beverly Hills

discusses his start in real

estate and explains why

his message of abundance

is so urgently needed into

today’s volatile market.

The Westside of Los Angeles is hustling with investor activity. Within a five-mile ra-dius there are no less than seven real estate clubs, serving thou-sands of investors. But

one organization goes way beyond simply being a club that talks about real estate. It is a self-help investor organization, which

encourages individuals to take action for a life of fulfillment. With over 2,000 members throughout Southern California, Sadat attracts visitors from up to two hours away. His clubs also hosts some of the nation’s most sought-after speakers, such as Than Merrill, Scott Mey-ers, Richard Roop and Reggie Brooks.

Sam’s Real Estate Club founder is Sam Sadat, a spirited U.S. immigrant of Persian descent who has lived in numerous parts of

the nation and eventually made his home base in Santa Monica, Calif. Sam’s passion, other than putting togeth-er real estate transactions, is the study of metaphysics and spirituality. It is this reap-and-ye-shall-sow philosophy, which also permeates at his club, that has attracted many loyal monthly followers to converge at the Beverly Hills Country Club. “I try to shift people’s mindset from scar-city and lack to that of abundance,” reveals the daily mediator. “Most people thinks that motivation comes from the outside, but that is an illusion. The fact is, motiva-tion comes from within.” Sadat began his quest for real estate knowledge shortly upon graduating from University of Texas, Austin, with a degree in mechanical engineering. He recalls: “At the time, I was working for corporate America. I took a hard look at my bosses, who had already been working there for 20 to 30 years, and I knew there had to be a better way.” In his quest for real estate, he first became attracted to real estate finance because he realized that “knowing the numbers,” was vital. Part of Sadat’s real estate education led him to start attending real estate clubs. He fondly recalls attending investment gatherings in different parts of the country,

article by Linda Pliagasphotography by John DeCindis


including Colorado. By the time Sadat be-gan to live in Los Angeles, he was already experiencing phenomenal success in real estate finance, including traditional mort-gage and hard money lending. He was also buying, rehabbing and flipping properties as a sole investor and also with partners.

It is then that he says he felt a longing to create his own space. “I wanted to have a forum for me. I wanted to make sure I could inspire people.” He carved out a space in Van Nuys and began to host monthly meetings in May 2003. The number of guests soon swelled into hundreds of people. Sadat prides himself in having a club where edu-cation, not promotion, is the focus. His goal is to transform each one of his members from being a potential in-vestor into an active one. “My main focus has become teaching and mentoring my students because often you have to hold their hand and literally push them to act upon their knowledge.” When asked why so many people sit on the sidelines when it comes to taking ad-vantage of the greatest buyer’s market of all-time, he replies with one simple word:

“Fear.” He adds: “That is really the funda-mental reason why people don’t act, it’s be-cause of fear. The fear of the unkown and fear of failure are really two of the most incredible fears that we have.” While Sadat is thankful for the success he has found in real estate, it hasn’t al-

ways been smooth sailing. “I lost millions because of the Northridge earthquake in 1994,” he confides. (Most Californians do

not carry earthquake coverage due to its lack of affordability.) Another tough lesson he learned was that no matter what type of transaction a real estate investor does, they need to hire an independent escrow com-pany to make sure the contract is followed accordingly. Sadat learned the importance of this when he purchased three homes in a

“Most people think that motivation comes from the outside, but that is an illusion.

The fact is, motivation comes from within.”

creative transaction, later he found out the seller was attempting to sell the same prop-erties again! “It was a learning experience for me and for others of what not to do, not having gone though a traditional escrow caused me a lot of aggravation and money because

I ended up having to take legal action.” During emotionally and finan-cially devastating times, Sadat turns in-

ward for strength and relies on words of wisdom from the individuals he admires most: Carl Yung, Wayne Dyer, Ralph Waldo Em-erson and Rumi, a Persian poet. Successful attributes in life, like in real estate, need to be developed. “I’ve heard my shares of ‘no’. I’ve had to work on myself. It’s a life mission.” For Sadat that calling is not merely a personal,

internal goal, as much as it is an evolving and fully dimensional manifestation. It is an avocation that he says he hopes will el-evate all those he reaches.

Be sure to visit Sam’s Real Estate Club on-line for a schedule of speakers: www.SamsREClub.com

The Scoop on Sam’s Real Estate ClubJoin Sam Sadat the 4th Wednesday of every month at the beautiful Beverly Hills Country Club. Meetings start at 7:30 p.m. and usually last about 2 1/2 hours. Reserve your seat online for $10 per person, which includes valet parking. Please register for the club meeting online at: www.SamsREClub.com


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Invest with the Best The Market Leader is MemphisInvest.com


by Charles Salisbury, MBA

“If you commit to getting better every day, your customers will demand you get bigger.”

— S. Truett Cathy, founder of Chick-Fil-A.

Continued on pg. 17

This sage advice, as well as nuggets of gold from other customer focused gu-rus, has been adopted into MemphisInvest.com’s own company goals and aspira-

tions; namely to be the absolute best turn-key investment company possible.

Many investors try their hand at out-of-state investing only to become frustrated with the less than stellar returns they expe-rience when dealing with companies who claim to be “turn-key” investment compa-nies that simply provide contacts, leaving customer service out of the equation.

Chris Clothier of MemphisInvest.com offers his advice for individuals who are interested in finding a true turn-key com-pany for their out of state investments. “If

you plan to invest out of state, you need to find the right company to partner with — someone that has experience, that has knowledge not only of the industry but of the market, and someone that is a true turn-key provider.”

While there are many companies who call themselves “turn-key” (so much so that he feels it has become an overused phrase), Chris believes that investors searching for a turn-key company to partner with should look for organizations who “own and op-erate every step of the equation.” This way, investors are not getting a company that says: “buy from me and I will give you contacts for renovation, or contacts for property management or contacts for insurance.” Chris says this is a recipe for disaster and it is a lot of hands-on work for

an out of state investor.Chris continues, “You are looking for

someone with all the business acumen to put together all the steps that make sense.”

The Clothier family established Mem-phisInvest.com and her sister companies, Memphis Invest Renovation Services and Premier Property Management on the firm belief that out of state investors need ac-cess to proven, qualified professionals who understand their needs. MemphisInvest.com partners with investors by handling all of the details — from purchasing invest-ment properties to ongoing maintenance and property management, helping to al-leviate the stress that often accompanies buying properties far from home.

Memphis Invest makes investing simple

Photograph from left to right: Chris Clothier, Brett Clothier, Kent Clothier Jr. and Kent Clothier Sr.

Continued on pg. 31Continued on next page

for out-of-state investors. “You make one phone call,” states Chris, “and you’ve got every department any answer — access to every single person in this company, so [the process is] very streamlined.”

Chris believes that successful investors possess some common traits — “they have to be inquisitive, they have to have curios-ity. They shouldn’t ever take everything at face value. They should be inquisitive as to who they’re dealing with, and what mar-kets that they’re looking to buy in. They should be willing and able to do some homework, look around, and ask the right questions. They should also have a long term mentality. This is not get rich quick by any means. The other thing that inves-tors need to be successful in long-term buy and hold, is they need access to capital. No money down is not an avenue to success. You have to have access to some capital and be able to build a long-term portfolio whether you use straight cash or some kind of leverage.”

MemphisInvest.com, possessing a strong customer service focus and attitude, makes sure that an investor knows, from the start, if this opportunity is right for them. “I don’t want to waste an investor’s time or raise their hopes,” says Chris. “We are very up front and very frank when we have our discussions. We need to know the financial strength and ability of an investor so we can help make sure they’re successful.”

Investors who partner with Memphis Invest will realize that “they have found a great opportunity in Memphis, they’ve identified one of the premier turn-key in-vestment companies in Memphis, and they’ve communicated real clearly exactly what they want — from there they just let us do it, and then they buy the opportuni-ties that we bring to them,” says Chris.

He continues: “This is about buying cash flow investment property, if an investor tells us that they need to earn a certain amount of cash flow to pay their bills each month, we are very adamant that they need to look at other financial opportunities, other finan-cial advice before buying real estate.”

For the Clothiers, “There is no sale worth making that’s gonna hurt somebody, just for us to make a little bit of money,” states Chris.

Why would an investor choose to partner

Top photo: Customer Service Team at MemphisInvest.com Carol Henderson, Cyndy McCrary, Ashley Claunch; Bottom photo: Brett Clothier gets ready to speak to a room full of real estate investors at a buyer tour in Memphis, Tennessee.

Top: An out of state real estate investor celebrates purchasing two investment properties.


MemphisInvest.com invites readers to join them at their events in the following cities:

•September 8th-11th - New Orleans •October 1st - Boston •October 18th - Phoenix •October 29th - NY •November 12th - Vancouver •December 1st - San Jose •December 3rd - San Diego

Here is one sample property, this home is already sold, but other great rentals are still available.

Be sure to add one to your portfolio.3 Bed/2 Bath with 2 car garage

Built in 2000 - Sq Footage - 1,601Purchased for $69,000

OR $37.41 PER SQUARE FOOT$10,000 in full renovation work completed

Tax assessed value in 2010 of $104,000Gross yearly Rents Between:

$9,900 and $10,740Assuming 30% of rents for yearly expenses and

the property has a cash on cash ROI of approximately 10%

MemphisInvest.com Rental Opportunity

with MemphisInvest.com? “As a company, we hold in very high

regard the customer service that we pro-vide,” says Chris, “we have three dedi-cated employees that provide customer service, including calling every one of our clients every month on behalf of our prop-erty management company and on behalf of the Clothiers, as the owners — and they ask the simple question: “What can we do for you?”

Chris shares the reason for Memphis In-vest.com’s amazing growth. “About a year ago we started to take time every single week to stop everything, and come togeth-er and study how to get better at customer service, and at business as a whole.”

The investment in customer service has paid off — in spades.

In the first half of 2011, MemphisInvest.com became the larg-est private home sell-er in west Tennessee. The only companies who sell more homes than Memphis Invest are Fannie Mae and the Department of Housing and Urban Development.

“ To d a t e , ” s a i d Chris, “we closed 163 transactions so far in 2011. Last year at this time, we had closed 79 transactions.”

The integrity and distinction that MemphisInvest.com brings to the turn-key investment industry is seen clearly by their actions -

MemphisInvest.com doesn’t recommend properties that they wouldn’t buy themselves. In fact, their investors buy and own in the same neighborhoods that the Clothier family buys and owns in.

Traveling to other cities, such as New York, Chicago, Boston, and all major California cities, MemphisInvest.com takes time to visit their clients face to face. Why? “We’re willing to do whatever it takes to provide the best service possible and to show our clients that we’re there for them,” Chris replies.


Kent Clothier Chooses toFollow the Road Less Traveled

Kent Clothier


One conversation with Kent Clothier will open your eyes to a fatal flaw found in many real estate programs: Most of the

gurus who pitch the products don’t actu-ally utilize them. Well, here is some inside scoop: Kent Clothier (and his entire fam-ily and team) actually use the systems Kent promotes. As owner of 1-800-SELLNow, the systems Find Cash Buyers Now and Find Private Lenders Now, and as co-own-

er of MemphisInvest.com, Kent Clothier uses the same knowledge that he shares with his clients, many whom have already seen great success in their own right.

“The industry is filled with people who want to tell you how to do it,” notes Kent, “but they’re not doing it themselves. There’s a lot of people who want you to buy this program, or buy that program, [but] the actuality is, very few of them are doing deals. Not only do we educate people, but we’re also buying and selling three to four hundred houses per year.”

Kent got his start in real estate after a successful career in the wholesaling busi-ness with a multi-billion dollar company in the grocery industry. After leaving the gro-cery business, he was, like many individu-als, “sucked into” the real estate industry by those infamous late nite “infomercials”, however unlike so many who try their hand at real estate investing and fail, he put ev-erything into his businesses and has grown three successful ventures in addition to working with his family’s business, Mem-phisInvest, a truly wholesale investment company.

A focus on creating a relationship with their clients and meeting their needs, as well as always doing what’s necessary, even the “dirty work” that nobody else

wants to do, has been the key to Kent’s success.

“If you’re willing to do what others are not, then you will find that success will usually follow,” said Kent.

Kent believes that his suc-cess, and that of his family, the Clothiers, “...lies in the fact that we’re willing to do something that others aren’t.

We are always willing to send someone down to the county clerk’s office to sift through property records to find cash buyers, people that are in our back yard, that we get to know, and by doing that we’ve built a very successful business, not a hobby.”

When Kent and his family shared the methods they utilized in growing their business with others in the real estate in-vestment industry, they were surprised at the reactions they encountered. Individuals were amazed that the Clothier’s could find cash buyers, and build a brand for their in-vestment business.

Kent’s businesses were “born out of our own investing interest,” said Kent. “We realized that what we were doing was so unique, that we needed to share it with other people.”

Investors who purchase their systems are provided with access to a wealth of infor-mation on real estate investing, including webinars, access to online cash buyers, continuous customer support and access to private lenders; virtually everything a seri-ous individual needs to grow their invest-ment business.

More than just great customer service and access to fantastic products, investors

learn how to “run their business like a busi-ness.”

“In our real estate education classes, we only spend 20 percent of our time teaching people on real estate, and we spend prob-ably 80 percent of our time educating them on how to be an entrepreneur, or how to actually get in the game the right way,” said Kent.

Rather than wait for the elusive (read “non existent”) “perfect” time to invest, Kent advises his clients to realize that “there will never be a better time, [your] inaction is costing [you] the opportunity of a lifetime!”

“There’s never going to be another op-portunity like this,” said Kent, “and yes, it’s supposed to be scary, it’s supposed to be a little unnerving, but it’s also what makes it exhilarating, it also makes it very excit-ing, it also makes it so rewarding when you finally get there, when you finally achieve the level of success you desire. ”

“If you’re willing to do what others are not, then you will find that success will usually follow...”

a transaction - you’re flipping real estate without the risk.

Black Belt Investors is unlike many oth-er real estate consulting, educa-

tion and investment firms. “I truly believe that if you want to become a real es-tate entrepreneur and cre-ate your real estate cash machine,” shared Sensei, “you need proper training by an experienced instruc-

tor that practices what he teaches. You

also need the instruc-tor to take you from classroom i n s t r u c -tion to a p p l y i n g

the tech-niques in the

trenches to help you develop your newly acquired skills and put you on the fast track

to getting paid. There’s a lot of real estate trainers and gurus out there that just pro-mote fluff and stuff. They glamorize real estate to be extremely easy and profitable all the time, and yes, real estate can be ex-tremely profitable, but the reality is, you’re going to have to do some work. Deals are not going to fall in your lap, deals are cre-ated. Just know that you will have some deals that are extremely easy that will put cash in your pocket quickly and with oth-ers you’re going to run into obstacles - it’s up to you as an investor to learn how to

Disciplined InvestingMastering the Art of the Flip

by Anita Cooper

Black Belt Investors’ Remote Rehabs program is a truly unique and phenomenal way to build cash quickly. Believe that Remote Rehabs is without rival in any shape and form. Black Belt Investors stake their reputation on the fact. By getting involved today, you will be receiving a profitable and automated hands-off rehab business with its time tested meth-ods, as well as Black Belt Investors’ 15 years of experience. Trust me... This is one chance you cannot afford to pass up; Take Action Now!

A Way to Effortlessly Flip or Rent Cash Generating Properties in the Hottest Markets Across the Nation

We call it Remote Rehabs! Almost everything has been done for you, we have:• Strategically Targeted Markets to Buy cheap, Fix Easily and Sell Quickly• Generated a Revolving Inventory of Deeply Discounted Properties starting at $20K• Taken Away the Headaches of Deal Searching, Pencil Pushing, Rehabbing and Sales• A Success Manager to Keep you Abreast and Coach You Throughout Your Deal• Basically Put Time Back on Your Side to Rehab Houses without Lifting a Hammer• “Gain Complete Control Over Your Life and Spend Less Time on Doing Things You Hate Doing By Using

Remote Rehabs, a 100% Hands-Off Fix and Flip System.”

“Exceeded Expectations”“Wow! Just wow! I don’t even know where to start with all the things that Remote Rehabs has done for me. Know that list of benefits that Black Belt Investors offers? Well they are all completely, one hundred and fifty percent true! All I know is that Remote Rehabs is the simplest and most profitable program I have ever experienced.”

- Pek Lee Choo - Chicago, IL“Simply Amazing”“Here is what I did: I enrolled in Sensei’s program Remote Rehabs, he found me a deal and his team did all the work A-Z. Soon after the rehab and listing the property, I was amazed to receive offers on my investment! At first I put it off to blind luck, but within 45 days I receive a check for over $17,000 in net profits and I’ve been smiling since.”

- Lynn McCloskey - Concord, CA

Office: 951-280-1900

Indianapolis, INPurchase Price: $43,000Repairs & Misc.: $32,000List Price: $110,000Sold Price: $110,000Net Profit: $25,100Cash-on-Cash Return: 33%


Phoenix, AZPurchase Price: $45,300Repairs & Misc.: $4,200Fair Market Value: $71,000Equity Position: $21,500Cash Flow: $725 mo / 8,700 yr.Capitalization Rate: 18%

Sold in 27 Days!

Equity & Cash Flow

Sold in 51 Days!

www.BlackBeltInvestors.com

Mastering the art of wealth creation takes time, it takes dedication, and most impor-tantly, it takes direction - guidance from a wise investor who has himself mastered his own destiny through smart investment strategies.

Sensei Gilliland, Founder and Presi-dent of Black Belt Investors, has trained hundreds of investors to grow their wealth through his “action oriented and results focused” training programs. Uti-lizing discipline gained through years of martial arts training, Sensei has created a program designed for all levels of investors who need guid-ance and direction and who desire to create a real estate business that is cash flowing tens of thousands of dollars every month.

Every experi-enced, or “black belt” investor, was once a “white belt” (beginner). He did not attain to his advanced posi-tion overnight; his knowl-edge increased as he put

his training into practice. He also did not train on his own, rather he had a teacher that led the way.

It’s vital that you find a successful men-tor, someone who is interested in helping you achieve your business goals. If you’re looking for immediate cash, wholesaling is the best place to begin. Black Belt In-vestors will train and coach you on how to control properties and create immediate cash without the use of cash, without the use of credit, and without the use of loans. Basically, you become the middle man of

get passed that obstacle, whether you have to go around it, over it, through it or under it. If you can learn that from your coach, you will find yourself in a profitable posi-tion. I know with a few of my realty-based techniques, you will be able to pass any obstacle and get paid.”

“One thing about Black Belt Investors,” shared Sensei, “is that one of our primary goals is keeping our investors engaged all the time. We’re not a fly by night company that trains students for 3 days and leaves them to do the work on their own. We’re a company that reaches out to help the stu-dent to get to the next level. We accom-plish this through my coaching program which is directly with me and not through a call-in center that answers questions from a script. We also keep investors en-gaged through multiple free webinars, workshops, on-site mentoring and my free monthly real estate club meetings in Southern California, which keeps me ac-countable as I must show my face there every single month. If I was over promis-ing and under delivering, then I would be exposed at that club meeting. Our inves-tors keep coming back because they’re en-gaged, and when they’re engaged they be-

come more successful. The only way not to be successful after one of my trainings is if you were to unplug yourself.”

You will learn by doing. “If I were to train you to wholesale properties, we would develop a battle plan, grab your hand to lead you onto the field, and start doing the business. There is nothing bet-ter than hands-on training,” shared Sen-sei. “Think about it, if you were to learn how to kickbox, and I had a kickboxer that

Deals are not going to fall in your lap, deals are created.

Continued on pg. 56Realty411Guide.com PAGE 20 • 2011 reWEALTHmag.com

Black Belt Investors’ Remote Rehabs program is a truly unique and phenomenal way to build cash quickly. Believe that Remote Rehabs is without rival in any shape and form. Black Belt Investors stake their reputation on the fact. By getting involved today, you will be receiving a profitable and automated hands-off rehab business with its time tested meth-ods, as well as Black Belt Investors’ 15 years of experience. Trust me... This is one chance you cannot afford to pass up; Take Action Now!

A Way to Effortlessly Flip or Rent Cash Generating Properties in the Hottest Markets Across the Nation

We call it Remote Rehabs! Almost everything has been done for you, we have:• Strategically Targeted Markets to Buy cheap, Fix Easily and Sell Quickly• Generated a Revolving Inventory of Deeply Discounted Properties starting at $20K• Taken Away the Headaches of Deal Searching, Pencil Pushing, Rehabbing and Sales• A Success Manager to Keep you Abreast and Coach You Throughout Your Deal• Basically Put Time Back on Your Side to Rehab Houses without Lifting a Hammer• “Gain Complete Control Over Your Life and Spend Less Time on Doing Things You Hate Doing By Using

Remote Rehabs, a 100% Hands-Off Fix and Flip System.”

“Exceeded Expectations”“Wow! Just wow! I don’t even know where to start with all the things that Remote Rehabs has done for me. Know that list of benefits that Black Belt Investors offers? Well they are all completely, one hundred and fifty percent true! All I know is that Remote Rehabs is the simplest and most profitable program I have ever experienced.”

- Pek Lee Choo - Chicago, IL“Simply Amazing”“Here is what I did: I enrolled in Sensei’s program Remote Rehabs, he found me a deal and his team did all the work A-Z. Soon after the rehab and listing the property, I was amazed to receive offers on my investment! At first I put it off to blind luck, but within 45 days I receive a check for over $17,000 in net profits and I’ve been smiling since.”

- Lynn McCloskey - Concord, CA

Office: 951-280-1900



Phoenix, AZPurchase Price: $45,300Repairs & Misc.: $4,200Fair Market Value: $71,000Equity Position: $21,500Cash Flow: $725 mo / 8,700 yr.Capitalization Rate: 18%

Sold in 27 Days!

Equity & Cash Flow

Sold in 51 Days!

www.BlackBeltInvestors.com

TrueWholesaleHouses, LLCWe are proud to offer a proven cash flow investment with substantial instant equity. The investor receives the best of both worlds a true turnkey investment backed and managed by a team of life long real estate professionals.The Genesis of True Wholesale Houses, LLC is taken from a deep understanding of cash flow real estate investing properties and what it takes for the passive investor to succeed. The investor that chooses to invest with True Wholesale Houses, LLC will enjoy a predictable monthly cash flow and instant equity.

True Wholesale Houses, LLC takes the work and worry out of owning a rental property, while maintaining a proven cash flow to the investor.No more worrying about:1. Collecting Rents.2. Maintenance Emergencies.3. Finding a Tenant.4. No more worrying about managing property and

managing your managers.5. Property Taxes.6. Finding the right home in the right neighborhood.7. Insurance.

True Wholesale Houses, LLC is your Equity Partner for the life-time of the transaction. Our partners on the ground have a stake in the home, the tenants, and preventing main-tenance problems by doing a quality re-habilitation on the property before we place a tenant.True Wholesale Houses, LLC pays monthly cash on cash 9% return for the term of the note. If the home has a vacancy, we still pay you every month. As your partner, True Wholesale Houses, LLC will manage the property and sell it when the market recovers. If you wish to keep the cash flow and the 9%, you as the investor can dictate an extension on the note, holding the home in the caring hands of True Wholesale Houses, LLC. True Wholesale Houses, LLC is here to work with you to give you the best value for your money. We are your true whole-sale partners so we can all prosper together.

True Wholesale Houses, LLC

Atlanta, GA - $19,500 Equity DAY 1 Net Investor Cash Flow $340/Mo • Note Price $51,000

HERE ARE SOME OF OUR NEW ADDITIONS TO

Jackson, MS - $17,500 Equity DAY 1 Net Investor Cash Flow $262/Mo • Note Price $35,000

Atlanta, GA - $20,000 Equity DAY 1Net Investor Cash Flow $309/Mo • Note Price $53,000

OUR SELECTIVE INVENTORY

Website: http://www.TrueWholesalehouses.com

“Equity Day 1, True Cash Flow, Peace of Mind”

JoinNow!

True Wholesale Houses, LLC brings investors Wholesale to Wholesale deals

as opposed to Wholesale to Retail

888 285 1900For information, contact:

I started working in real estate with my friend, Walter. We both started out rehabbing houses, but there were two big differences between us. First,

I was a lot younger; I was 32, Walter was 58. Second, I grew my net worth and cre-ated a hands-free passive income. Walter, by contrast, got hooked on buying and selling. Why?

He was afraid of tenants, so he rarely rented houses. When he did, it was always on a “rent to own” basis. (He offered the tenant a lease option). After all, single family homes don’t generate much posi-tive cash flow.

Walter didn’t mind giving up his fu-

ture appreciation. After all, he always got $5,000 plus upfront in “option consider-ation” and he always sold his houses and made a profit. Over a three year period, he grossed an average of $109,00 per year. Sounds pretty good, doesn’t it?

Unfortunately, the IRS calls him a “deal-er”. That’s because he rarely holds a house for more than a year. So his profits are taxed at the painfully high rate of “ordinary income”. For example, he sold a house for a $29,000 profit, that’ll cost him about $10,000 in taxes.

After overhead costs and taxes, Walter’s “take home pay” is only about $60,000 per year. And every dime pays for his living

expenses. The result: at the age of 65, his net worth is only about $33,000. And that’s not the worst part...

If he stops buying and selling, he’ll have no income to live on! That’s because he has no income-producing assets. No posi-tive cash flow. No annuity. And no equity. Now he looks back at all of those years and realizes he made a big mistake.

Most of the homes he bought in the mid-90’s have doubled in value, but he sold them all before they had a chance to appre-ciate. He gave away hundreds of thousands of dollars in appreciation. (And the IRS took a third of his profits). He never bought

How could a real estate “investor” flip houses for eight years, only to wind up with no assets, no cash flow, and no income? by Dave Lindahl

Dave’s RE Tips WealthReal Estate

From the Publishers of Realty411

Vol. 1 • No. 3 • 2011

Turn a Real Estate Hobbyinto a Profitable Business8 18 Zero Down Investments

Learn Our Secret Recipe10 Be a Private Lender,Learn to make BANK!

Serving the Needs of Accredited Investors - INSIDE: Information to Grow and Maintain Your Wealth


TrueWholesaleHouses, LLCWe are proud to offer a proven cash flow investment with substantial instant equity. The investor receives the best of both worlds a true turnkey investment backed and managed by a team of life long real estate professionals.The Genesis of True Wholesale Houses, LLC is taken from a deep understanding of cash flow real estate investing properties and what it takes for the passive investor to succeed. The investor that chooses to invest with True Wholesale Houses, LLC will enjoy a predictable monthly cash flow and instant equity.

True Wholesale Houses, LLC takes the work and worry out of owning a rental property, while maintaining a proven cash flow to the investor.No more worrying about:1. Collecting Rents.2. Maintenance Emergencies.3. Finding a Tenant.4. No more worrying about managing property and

managing your managers.5. Property Taxes.6. Finding the right home in the right neighborhood.7. Insurance.

True Wholesale Houses, LLC is your Equity Partner for the life-time of the transaction. Our partners on the ground have a stake in the home, the tenants, and preventing main-tenance problems by doing a quality re-habilitation on the property before we place a tenant.True Wholesale Houses, LLC pays monthly cash on cash 9% return for the term of the note. If the home has a vacancy, we still pay you every month. As your partner, True Wholesale Houses, LLC will manage the property and sell it when the market recovers. If you wish to keep the cash flow and the 9%, you as the investor can dictate an extension on the note, holding the home in the caring hands of True Wholesale Houses, LLC. True Wholesale Houses, LLC is here to work with you to give you the best value for your money. We are your true whole-sale partners so we can all prosper together.

True Wholesale Houses, LLC

Atlanta, GA - $19,500 Equity DAY 1 Net Investor Cash Flow $340/Mo • Note Price $51,000

HERE ARE SOME OF OUR NEW ADDITIONS TO

Jackson, MS - $17,500 Equity DAY 1 Net Investor Cash Flow $262/Mo • Note Price $35,000

Atlanta, GA - $20,000 Equity DAY 1Net Investor Cash Flow $309/Mo • Note Price $53,000

OUR SELECTIVE INVENTORY

Website: http://www.TrueWholesalehouses.com

“Equity Day 1, True Cash Flow, Peace of Mind”

JoinNow!

True Wholesale Houses, LLC brings investors Wholesale to Wholesale deals

as opposed to Wholesale to Retail

888 285 1900For information, contact:

I started working in real estate with my friend, Walter. We both started out rehabbing houses, but there were two big differences between us. First,

I was a lot younger; I was 32, Walter was 58. Second, I grew my net worth and cre-ated a hands-free passive income. Walter, by contrast, got hooked on buying and selling. Why?

He was afraid of tenants, so he rarely rented houses. When he did, it was always on a “rent to own” basis. (He offered the tenant a lease option). After all, single family homes don’t generate much posi-tive cash flow.

Walter didn’t mind giving up his fu-

ture appreciation. After all, he always got $5,000 plus upfront in “option consider-ation” and he always sold his houses and made a profit. Over a three year period, he grossed an average of $109,00 per year. Sounds pretty good, doesn’t it?

Unfortunately, the IRS calls him a “deal-er”. That’s because he rarely holds a house for more than a year. So his profits are taxed at the painfully high rate of “ordinary income”. For example, he sold a house for a $29,000 profit, that’ll cost him about $10,000 in taxes.

After overhead costs and taxes, Walter’s “take home pay” is only about $60,000 per year. And every dime pays for his living

expenses. The result: at the age of 65, his net worth is only about $33,000. And that’s not the worst part...

If he stops buying and selling, he’ll have no income to live on! That’s because he has no income-producing assets. No posi-tive cash flow. No annuity. And no equity. Now he looks back at all of those years and realizes he made a big mistake.

Most of the homes he bought in the mid-90’s have doubled in value, but he sold them all before they had a chance to appre-ciate. He gave away hundreds of thousands of dollars in appreciation. (And the IRS took a third of his profits). He never bought

How could a real estate “investor” flip houses for eight years, only to wind up with no assets, no cash flow, and no income? by Dave Lindahl

Dave’s RE Tips WealthReal Estate

From the Publishers of Realty411

Vol. 1 • No. 3 • 2011

Turn a Real Estate Hobbyinto a Profitable Business8 18 Zero Down Investments

Learn Our Secret Recipe10 Be a Private Lender,Learn to make BANK!


Continued on pg. 62

True Wholesale Houses Offers Investors Security & Returns by Anita Cooper


Step 1True Wholesale Houses,

LLC acquires a foreclosed or REO property

Step 2Partner Company,

Portland Funding LLC makes a loan at True

Wholesale CostCreating Instant Equity

Step 3True Wholesale Houses does a complete Reha-bilitation of the property. Creating a problem and

maintenance free property

Step 4True Wholesale

Houses tenants the property creating instant cashflow

Step 5The investor buys the note

from Portland Funding, gaining First Deed of Trust

on the property, and a 50% equity position.

Step 6Monthly interest checks are sent to the investor

Step 73 - 5 years later, TWH sells the property and

investor gets 50% of the equity built, on top of the monthly returns from the cash flow generated by

the tenants

Truly unique, truly amazing, truly one of a kind. True Wholesale Houses is different from ev-ery other investment

company you’ve come across. Jay Hinrichs, managing owner of

True Wholesale Houses is uniquely qualified to provide investors with top notch investment opportuni-ties that promise consistent returns. Hinrichs is both a licensed mortgage banker in the state of Oregon, and a licensed real estate broker in Cali-fornia, Oregon and Mississippi.

Hinrichs shared his reasoning be-hind True Wholesale Houses’ cre-ation; “As a lender, back in 2008 and 2009, like every other lender at the time, we had foreclosure prob-lems, I looked at the model and said, ‘There’s gotta be a better way to protect the investors than just let-ting them go off on their own.’”

Concerned about this trend, Hin-richs devised the current model that True Wholesale Houses follows: They provide professional invest-ment and property management experience that guarantees both the company and the investor yield substantial profits from their col-laboration.

“We’ve combined my years of lending knowledge and my years of buying and owning rental proper-ties, and combined that knowledge into a hybrid model that gives the conservative investor, who’s look-ing for the utmost in protection and equity preservation, another avenue.”

Hinrichs shares one key differ-ence between his company and most other investment companies: “At the end of the day, none of these investment companies have an own-ership interest in the property going forward, they’ve taken their profit

up front. Our profit is deferred un-til the property sells. And like the triple net lease, we offer the same thing – investors get their payment monthly, regardless of whether it’s rented or not.

With this program investors never have a cash call and they don’t have to worry about any of the maintenance. True Wholesale Houses deals with all the manage-ment headaches associated of own-ing and managing an asset.

Unlike other investment com-panies, Hinrichs says that at True Wholesale Houses, both the prop-erty manager and the rehabber are owners of the property. “Our guys on the ground are vested in the properties. They have an own-ership interest, and they too are working for the equity bonus when we sell these properties.”

“Our ownership interest in the properties, assures investors that the assets are being managed to their highest potential for profit,” Hinrichs maintains. His forecast of the market is explained: “We be-lieve we’re in the middle of a ten year cycle, and that in 3 to 5 years we’re going to be coming out of that cycle and once we see a chance to sell our properties at a substan-tially higher amount than what the note values are, that’s when we’ll start to roll out of the properties, because that is where our big profit is lying.”

There is steep learning curve for individuals who are exploring investing in real estate. According to Hinrichs, what True Wholesale Houses does is “mitigate the learn-ing curve, give a real return based on years of experience owning and renting rental properties, and giv-ing the utmost consideration to principal preservation. We’re not going to lose money. You’re invest-

Rock-Bottom Prices, Secure Returns & Built-In Exit Strategy

ing with people who do this for a living. We stay in these trans-actions for the long haul and for the life of the transaction.”

“I have put this model to-gether so that everyone is a stake holder and have skin in the game. As long as we buy in the area we want to be in, re-hab to our standards, not just to

rental standards, treat our ten-ants like gold, like they are, the rest falls into place. Our cash flow is great, and our investors get taken care of.”

The reward is a real estate in-vestment with a steady, unwav-ering return, which may sound like an oxymoron. When asked how this is possible, Hinrichs replies: “We assure investors of a consistent monthly cash flow, regardless of whether the prop-erty is rented or not. We achieve this by using a conservative vacancy and maintenance re-serve allocation that assure that

the property is maintained in a peak performance standard throughout the life of the trans-action.”

According to Hinrichs, when one invests with their model, they can expect a nine percent cash on cash return with no downside, for the life of the in-vestment. Then, when it is sold,

(they believe that timeframe to be within three to five years), there’ll be another 30 to 50 percent equity payday for the investor.

Compared to houses offered by other investment com-panies, Hinrichs says these properties are truly “whole-sale.” For example, in Jackson Mississippi, they were able to offer a home to an investor at approximately $30,000 less than a similar home offered by another investment company.

In other business models, the retailer takes the equity up

front, and the investor is bank-ing on property values going up. “If the investor comes in with us, they already got equity because we’re putting them into the asset for literally 20, 30, 40 percent less than anybody else is going to sell it to them for,” said Jay.

In addition to Hinrichs’ ex-

tensive experience in mort-gage banking and real estate, he shares advantages that his company has over its competi-tors. His partner, Mike Hanks, is a successful home builder in Oregon. He has built over 500 homes. Hanks also has an IT background and has set up prop-erty administration systems for

Guardian Management, which had 11,000 units, so they have the tools to manage hundreds and hundreds of houses.

“Our partners on the ground are people that we’ve known for years. They are highly ex-perienced and very excited to be part of the team and have an ownership interest in the house, other than just managing the house for somebody else and not owning any of it.”

Please note: Investors will be provided, upon request, with banking references to validate True Wholesale Houses’ financials.

We Help You Get The Most Out Of Your Investment!

Carolina Liquidators helps investors like yourself find the best deals on properties in your area. Along with providing a resource to help you find investment property we also pride ourselves in having the ability to educate you on making sound investments and helping your make the most out of your business.

Carolina Liquidator and it’s affiliates are primarily Real Estate Wholesalers. With over 40 years combined experience in the Real Estate and Mortgage in-dustry we are able to help you achive your Real Estate Goals that may have not otherwise have been possible.

We have a full staff of people hunting, researching, marketing, inspecting and negotiating these deals. Companies like us can supply you with deal after deal; why not let us do the work for you? We have the time and resources to find these deals that most likely will not be available to you.

We can provide everything an investor would need to make a sound decision. We have you covered every step of the way from planning, based on your financial goals, to property acquisition and property rehabilitation.

We have been doing Real Estate Investing for the last 18 years and mortgage for the last 15 years. We have the experience and know how to get deals done. Whether your looking for a home to make a quick return on, or homes that produce a constant cash flow. We will find you what you are looking for!

www.CarolinaLiquidator.com

Carolina Liquidator made the buying process so easy. I would definitely recommend their services to anyone who is looking at investing in a home...“ ”

1825 Remount Rd. Charlotte. 3 bed 2 bath home for $55,500.00 • Tax Value $101,900.00

$593.00 Net cash Flow

Pricing Property Location Features$55,500.00 1825 remount Rd Bedrooms: 3 Charlotte, NC 28208 Bathrooms: 2

This home is located near downtown Charlotte NC. It is a newer 3 bed 2 bath home and will rent for $850.00 a month. With the sales price being half of the current tax value it’s a steal at $55,500.00 and netting $593.00 a month cash flow. It is near schools, employment and shopping and less than 5 minutes to down town Charlotte. Don’t let this one slip away.

Breakdown:Rent: $850.00 Total Expenses: $257.00Approximate taxes: $122.00 Net Cash Flow: $593.00Insurance: $50.00 Cash on Cash Return: 14%Property Management: $85.00

803-325-1925

We Help You Get The Most Out Of Your Investment!

Carolina Liquidators helps investors like yourself find the best deals on properties in your area. Along with providing a resource to help you find investment property we also pride ourselves in having the ability to educate you on making sound investments and helping your make the most out of your business.

Carolina Liquidator and it’s affiliates are primarily Real Estate Wholesalers. With over 40 years combined experience in the Real Estate and Mortgage in-dustry we are able to help you achive your Real Estate Goals that may have not otherwise have been possible.

We have a full staff of people hunting, researching, marketing, inspecting and negotiating these deals. Companies like us can supply you with deal after deal; why not let us do the work for you? We have the time and resources to find these deals that most likely will not be available to you.

We can provide everything an investor would need to make a sound decision. We have you covered every step of the way from planning, based on your financial goals, to property acquisition and property rehabilitation.

We have been doing Real Estate Investing for the last 18 years and mortgage for the last 15 years. We have the experience and know how to get deals done. Whether your looking for a home to make a quick return on, or homes that produce a constant cash flow. We will find you what you are looking for!

www.CarolinaLiquidator.com

Carolina Liquidator made the buying process so easy. I would definitely recommend their services to anyone who is looking at investing in a home...“ ”

1825 Remount Rd. Charlotte. 3 bed 2 bath home for $55,500.00 • Tax Value $101,900.00

$593.00 Net cash Flow

Pricing Property Location Features$55,500.00 1825 remount Rd Bedrooms: 3 Charlotte, NC 28208 Bathrooms: 2

This home is located near downtown Charlotte NC. It is a newer 3 bed 2 bath home and will rent for $850.00 a month. With the sales price being half of the current tax value it’s a steal at $55,500.00 and netting $593.00 a month cash flow. It is near schools, employment and shopping and less than 5 minutes to down town Charlotte. Don’t let this one slip away.

Breakdown:Rent: $850.00 Total Expenses: $257.00Approximate taxes: $122.00 Net Cash Flow: $593.00Insurance: $50.00 Cash on Cash Return: 14%Property Management: $85.00

803-325-1925

Market Spotlight: Rock Hill, SC

as much a part of the team as anyone else involved. It is kind of shocking to some of the investors when they come out to visit our office because we have so much community support, we have churches and community leaders that work with us to help keep the areas clean and safe.

Q: Why should investors buy rentals in your area?A: Investors should buy rentals in our area because we have good, hard working peo-ple living in our homes. People who rent

our homes are mostly blue collar workers who make a living by working anywhere from retail stores to our local industrial plants.

For a very small investment, you can turn a very good income. Literally for what you could buy a car for, you can buy real estate in our markets with a net cash flow of more than $400 a month. Just about ev-ery home we have is under $50,000, with the majority being in the $30,000 range.

Q: What makes your company unique?A: We don’t just sell real estate to people, we create portfolios, we are currently in the Charlotte, NC, Rock Hill, SC, and the Atlanta GA, areas and we are still expand-ing into the florida market. What we do

Question: What kind of opportunities are you seeing in your market?Answer: We currently have a 67 house package that we are working on. It is not only a great opportunity for us but for in-vestors who are interested in this package. About half of the homes are currently rent-ed and we should be able to place tenants in the other homes very easily.

This is a once in a life time deal for our company, to buy so many of these homes, rehab them, and get tenants in them. It is a big challenge for our company, but we have a great team, and we are up for the chal-lenge. This is just one of the projects that we have currently going, we have many smaller deals also, many in the $30,000 dollar range.

Q: How is your market handling the eco-nomic slump?A: Being based in the Charlotte, NC area, we haven’t felt the effects quiet as heav-ily as other cities, but we have noticed an increase in the number of tenants interested in our rent to own program. More people in the area are looking to rent but still have a desire to own their own home. With a rent-to-own program, we are able to place good tenants in these homes who will pay each month because they want to own the home. This is real simple, the properties values are down and the rents are staying the same or even going higher than previous years in some occasions. Just to give you an idea, we have several homes available in the mid $30,000s that are net cash flowing over $400 a month with cash purchases.

Q: What is the best part of being an in-vestor in your city?A: We handle everything for the investor; it is a total turnkey process for the passive investor. We take care of our tenants just as well as we take care of our investors. After all, these are the people who are put-ting money into your retirement. They are

is figure out what you are looking for and what your goals are and we put scenarios together that will help you achieve those goals. We have a great team that works daily on achieving the goals of our inves-tors. Our team includes our research spe-cialist, Emily Harris; property manager/office manager, Cherry Stegall; and gen-eral contractor, Bennett James. These three work to keep the daily operations of our of-fice moving so that we can continue to find deals for our investors. Q: How long have you personally been

investing in real estate?A: Alex Franks started his real estate in-vesting in 1999 as a way to generate pas-sive income and long-term wealth. Starting out wholesaling deals is something he con-tinues to actively pursue today. By 2006, he made the leap from wholesaler to a full- time real estate investor.

Kevin Burrell has 18 years experience in Real estate and 15 years in the mortgage lending business, after he bought his first house in 1994, Kevin was hooked on real estate investing.

In 2008, Alex and Kevin joined forces to create Carolina Liquidator, LLC. They both specialize in being able to quickly analyze

LOCATIONS:Rock Hill, South CarolinaCharlotte, North CarolinaAtlanta, GeorgiaCOMPANY:Carolina LiquidatorCONTACT: Kevin & Alexph: (803) 325-1925CarolinaLiquidator.com

Continued on pg. 31


Alex Franks and Kevin Burrell

Property tours offer out of area investors the perfect opportu-nity to learn about markets and the cash flow deals they offer.Investors who are interested in

investing in Phoenix won’t want to miss out on REO Bailout’s first three-day proper-ty tour, scheduled for October 8th, 9th and 10th (see below for more information).

The tour is being produced by REO Bailout, a premiere real estate investing company based in California.

O w n e d b y M i k e Barker, a 20-year law enforcement profes-sional who currently serves as a SWAT of-ficer, Barker is a prime example of how in-

vestors can combine full-time demanding careers with the flexibility and high profits that part-time real estate investing offers.

REO Bailout has been acquiring, rehab-bing and selling properties to wholesalers,

flippers and buy-and-hold investors for many years. Their expertise began in their own backyard of California and soon ex-

panded into other markets. “During the last two years we have

done extensive studies on the hardest hit markets in the U.S. We have actually put people on the ground in these markets to get a first-hand look at the growth and de-velopment these areas offered.

Currently, Phoenix is the destination of choice.

“Arizona, and the greater Phoenix area, have shown greater growth potential and the commitment to improve infrastructure. Many Fortune 500 companies have made Phoenix their home, capitalizing on the low cost of housing and low tax base. It is because of this commitment and their actions to improve this city that we feel Phoenix is the best fit for us at this time.”

Investors can have a variety of cash-flow deals to choose from, Barker explains, “from condos, single family residences,

Americans Flip to AustraliansAZ Property Tour Explains How

Continued on pg. 57

• We’ve researched the Markets • Negotiated a deep discount on the properties • Work with Experienced Contractors• Either BUY, FIX and FLIP or BUY, FIX and HOLD

for Cash Flow• Financing is Available-No Cedit Required

REO BAILOUT’S PHOENIXReal Estate Buying Tour!

Meet the nation’s top power team with thousands of successful deals.

Join us on the tour Oct. 8th, 9th, and 10th

Join Us For 3 Days of Education & Action Taking!FOR TICKET INFORMATION:Visit online: http://www.eventbrite.com/event/2084770605 or call: (805) 876-4504 email: [email protected]

• Immediate Equity • Undevalued Properties• Instant Positive Cash Flow • Licensed Property• Income and Appreciation Managment Companies

Benefits of Investing in Phoenix


Did you know creat-ing monthly residual income in the stock market is just a click

away? Now is a great time to be a stock market investor and trader. In the last fifty-two weeks, shares of com-panies like Netflix (ticker NFLX) have risen from $95 per share to over $300 per share. Similarly, shares of athletic yoga apparel maker LULU Lemon (ticker LULU) have gone from a fifty-two week low of $15 to $64. That’s a400% percent increase.

This year has seen explosive growth in stock prices and there’s more to come. Is it a big surprise to the experienced trader and investor? The answers is no. Here’s why: we are in the middle of a technologi-cal revolution. The use of hand held devices and the mobile applications that accompany them are exploding worldwide. As a stock market investor, you can cash in on almost every trend you see around you. All of this innovation is financed, in part, by investors like you and me.

Here’s how the game works. We pur-chase shares of companies that are publicly traded. The capital raised from “going pub-lic” finances R&D, marketing and advertis-ing. In essence, we help finance the boom. Our reward is evident when we purchase shares of let’s say XYZ stock at $50 and one year later those same shares trade for $120. That’s over a 100% increase in our initial investment.

How do you choose winning stocks? Here’s the big secret: on Wall Street, it’s all about revenue. When a publicly traded company’s quarterly and annual revenues rise, ninety percent of the time so does the stock price. Your job is to learn how to read an income statement and choose winning stocks. To do that you’ll need a financial education.

The Winning CombinationThe most successful investors know the road to millions is paved when you have a balanced portfolio of stocks and real estate.

If we look at the two richest people in America, Bill Gates and Warren Buffet, they made their billions from owning shares in publicly traded companies. Some com-panies they started themselves and others

they acquired. Mr. Gates and Mr. Buffet both follow a

simple formula. Make your money on Wall Street and invest the profits in real estate. Why stocks? Stocks are easy to buy and sell. As a stock market investor, you have the advantage of being able to trade from anywhere in the world as long as you have internet access. Next, when you buy and sell stocks there are no credit checks, clos-ing costs, title searches or PMI (Protective Mortgage Insurance). It’s possible for you to purchase shares of a company at $50 and sell them a week later for $55. That’s a ten percent profit.

Trading stocks can be a fast or slow transaction. Either way, it’s a simple buy low and sell high scenario. In a case like APPLE (ticker AAPL) it’s buy high and sell even higher. Apple has a record four-teen straight quarters of top line revenue growth. If you purchase shares now, the potential for future growth is still present.

A $10,000 investment in Apple stock five years ago would be worth $70,000 today.

Monthly Income Some stocks allow you to produce monthly residual income by selling covered call op-tions. What are covered call op-tions you ask? It works like this:

Let’s say you purchased 100 shares of XYZ stock at $9.75. Instead of selling XZY stock at a higher price after you purchased the shares, you sell the rights to your stock first to create guaranteed in-come. Selling a call option means that you would be selling the right, not the obliga-tion, to someone in the market place to buy that stock away from you at the $10 price at a later date. The buyer of the option would

then pay you something called a premium. In this example the premium is $.90 per share. The price that you’ve agreed to sell the stock at is called the strike price. In this case it’s $10.

So in the above example you sold a call option and earned a $.90 per share premium. Simultaneously, you agreed to sell the stock at the $10Strike Price. No matter what hap-pens in this transaction, if the buyer decides to buy the stock from you or let the option expire, you get to keep the $.90 premium.

The buyer of the option could choose to exercise that option at any time before the expiration date and pay you the full $10. If the buyer decides to exercise the option, you would be obligated to sell the stock to him or her at the $10 strike price but you would keep the $.90 premium. Let’s look at the total profit:Stock bought at $9.75 and sold at $10 = .25 per share profit or 2.5% returnPlus .90 premium. =.90 per share profit or 10%Total profit on trade = 12.5% per month

Great News About Future WealthThere’s still time for you to earn big bucks as a stock market investor. With Facebook and Twitter set with IPO’s (initial public of-ferings) planned for early 2012, you can get in on the ground floor…. sort of. With Wall Street’s fascination with “all things social media” at an all-time high, financial institu-

tions and hedge funds are sure to bid the shares of these companies higher and higher as their profits increase. So what are you waiting for? You have a lot to be excited about. Your next move is to start to educate yourself about stock trading and investing. From there, you’ll be on the fast track with two different winning asset classes, stock and real estate.

Creating Wealth in the Stock Market

Tyrone Jackson is the founder and cre-ator of the Wealthy Investor program. Each month, Mr. Jackson teaches be-ginners and seasoned stock market

investors how to produce monthly income ranging from $5,000 to $30,000. Visit www.TheWealthyInvestor.net for details. A fre-quent radio and TV guest, Mr. Jackson wel-comes your feedback, send to: feedback@the wealthyinvestor.net

When Hollywood actors and Silicon Valley executives want to increase their

wealth, they turn to Tyrone Jackson

Christian and Ruth are real es-tate investors who are also known as the “Property Flip Pros.” They regularly take a bus load of investors

around Southern California to show them their own projects and to teach them how to rehab properties. They personally are taking full advantage of the current foreclosure market.

One of the best ways to learn is through experiencing things first hand, the same holds true for rehab-bing properties. The best way for po-tential flippers to learn how to rehab properties is to learn from the pros in person. This is exactly why Christian Yepez and Ruth Ortiz decided to start providing investors with property tours. The experienced rehab duos have been flip-ping for 15 years. “Many investors want to do what we do, but they don’t know how,” Ruth says and adds: “We take them through the process and we tell them what we do to add value and make the property sell faster and for more money.”

The tour I attended was frequented by a group of about 30 investors. All were eager to learn some real estate secrets and shortcuts. Many of the people on the tour

were already investors, most of them were looking for the type of surge in cash that only real estate can provide in today’s great foreclosure market.

New investors find this property flip tour very educational, there is a lot to learn, this is the Real World of the property flipping business.

Ruth and Christian provide one of the few property bus tours in Southern Cali-fornia. When asked what areas they like to focus on, Christian replies: “We will go anywhere the numbers are good.”

Like most experienced rehabbers, Chris-tian and Ruth rely on a combination of pri-vate and hard money to acquire, renovate

and carry the property until it’s sold to a retail buyer. They rely on good business relationships with REO brokers and real estate agents who bring them deals often. They also utilize well trained virtual assis-tants to scout different multiple listing ser-vices for deals and also to help them submit low ball offers.

Many offers need to be made before one sticks.

“Sometimes we’ll land a deal that we forgot we made an offer on,” chuckles Ruth. In addition to scouring the MLS, Christian and Ruth buy properties at auc-tion and pick up discounted REOs and shortsales, they also on occasion work with distressed owners and negotiate short sales. Being bilingual (English/Spanish) gives the team a competitive edge in bargaining directly with contractors for the best rehab estimates.

“Cost is a big factor in the success of a rehab, we try and hire the most affordable crew we can even if it means having to su-pervise them more,” admits Ruth.

The last entire home rehab they com-pleted cost only $25,000. Regular price for the same project elsewhere runs around $40,000. That price includes a new kitchen, new two bathroom remodels, new floors

Property Rehab Tours Hit Southern California


new interior and exterior paint, new land-scape and other smaller upgrades, such as new appliances.

What struck me most about Ruth and Christian’s tour is the fact that they so gen-erally reveal all their secrets. They also en-courage you to use their team for their own projects, including hiring their assistants, handymen and gardeners.

“We don’t mind giving our secrets away,” Christian says, adding: “Because the truth is most investors can’t do what we do because real estate is not that easy. You have to take action, you have to work to find deals, you have to be creative and make fast decisions.”

Rehabbing a property is not for the weak at heart, it takes a lot of time, en-ergy and knowledge. Once investors real-ize how time intensive it is, many opt to instead lend their available funds to other rehabbers, like Christian and Ruth. In this way, the investor can still be part of a re-

hab but not be directly involved. “We have investors who like to do rehabs with us and it works great. We find the deal, handle the work and sell the property. They get a great, steady return, and they can be involved in a rehab without doing the work. It’s a win/win for everyone,” she says with a smile.

Christian and Ruth will continue do-ing rehab tours with their own properties, if you are inter-ested in learning how to be a part of this incredible experience, visit their website or call them. In addi-tion, once you go to their website, they have a FREE GIFT for you, something that you can use for you real es-tate business today.www.CaliforniaHomesRepos.com/blog/realty411 or call: 562-304-7787

Property Rehab Tours Hit Southern California

deals, putting creative deals together that seem impossible and approaching deals from every angle. They are willing to share their knowledge with other investors and help them with their real estate goals. They are active spokesmen to several real estate seminars and radio shows. Caro-lina Liquidator has easily been involved

in more than 100 real estate deals in the York County, South Carolina area. Many investments range in prices from $10,000 to $2.5 million.

They continue to invest in real estate, grow and develop a stronger property management company, while spending more and more time consulting real estate investors on the happenings in today’s market.

Kevin Burrell, along with Alex Franks, are founders and managing partners of Carolina Liquidator. They manage all as-pects of real estate investments, includ-ing buying, selling, construction rehab, and property management. Kevin spent 15 years as a mortgage loan officer and has been doing real estate for the last 18 years. Drawing on 18 years experience in real estate and 15 years in mortgage lend-ing, Kevin now focuses mainly on real estate wholesaling. After he bought his

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first house in 1994, Kevin was hooked on investing. Kevin specializes in being able to quickly analyze deals, putting creative deals together that seem impossible and approaching deals from every angle. He is willing to share his knowledge with other investors and help them with their real es-tate goals.Q: Are there any special financing or programs available that investors should

know about?The best deals will always be cash deals, but we still offer 20% down deals, we also have some new fi-nance options in the works, which we should be launching soon, but we’re keeping that a secret!

Q: What is your real estate or management philosophy?Our team philosophy is simple, Don’t sell something that I would not buy my self. Make sure to treat tenants like family but always keep

strict rules and abide by them. At the end of the day real estate is still an invest-ment so make sure to have goals and struc-ture each deal to align with these goals.

Q: What tips or advice do you have for our readers?A: The best advice we can give someone is to do your homework. Educate yourself on real estate investments, and according to your financial situation, find the type of deal that works best for you, whether that be commercial, cash flow rentals, or retail. Prepare yourself so that you understand all the positives and negatives of buying real estate. Once you feel prepared, find a team that fits you. Our advice to people new to investing is to only buy one or two proper-ties, that way you can analyze your experi-ence and fix any flaws before you make any other decisions on any other deals. Make sure you are dealing with a solid team with reputable references.

Claim Your Free Gift Below

Market Spotlight, pg. 27


This is an amazing time to invest in real estate. You can invest almost anywhere, in almost any kind of property, and profit handsomely. Yet many people will jump

into the market, lose considerable cash, and drop out of the market, only to miss out on the greatest opportunity of their lifetime. Others, with significantly fewer resources, will amass considerable wealth. What’s the

difference? Persistence, patience and thor-ough homework are critical deciding fac-tors. Successful investors develop a plan, research diligently, and persist. In addition, successful investors understand the impact of a single variable — TIME. Do you un-derstand how time impacts your real estate activities? Understanding this single vari-able can increase your focus, extend your patience, and give you the confidence to persist. Let’s explore how time is the criti-cal linkage between fix/flip, buy/hold, cash flow/appreciation and success in real estate investing.

How do you make money in real estate? Appreciation or cash flow?

Both response are true, so what’s the dif-ference? One word — TIME. For example. suppose you buy a property at 95% of mar-ket value, that produces a cash flow of 25% cash-on-cash. The cash-on-cash return is also called the internal rate of return (IRR). Note this is not the total return on invest-ment (ROI). The ROI depends upon how long you hold the investment — time.

Are you satisfied with a property that cost you 95% of market value and produces 25% IRR? That depends upon your TIME horizon. If you work at the business of fix/flip and expect to sell the property in 3-6 months, then you may not be satisfied with a 5% bump in price and a total cash flow of 6% on your investment. It gets worse. Perhaps you needed three months to get the property rehabbed and rented, you may have lost money on the cash flow because the property was vacant and you have some interest cost on your invested funds. Time offers different rewards and sets dif-ferent traps for each type of real estate investor.

Time for Fix/FlippersFor the short-time horizon of a fix/flipper,

time sets a trap at both ends of the transac-tion. If you buy too high, you cannot wait for value appreciation and the cash flow to bail you out. So, with a short-time horizon you must focus on a single variable — your purchase price. If your purchase price is low enough, you will profit in the short term. If you pay too much, it’s difficult to profit in a short term.

Time sets an emotional trap when you get ready to flip your property. As a rehab-ber your business is flipping. If the project

went wrong somehow, you cannot cure it by setting a high sale price and waiting for an unsuspecting buyer to bail you out. Your business is fixing and flipping, not holding. The cash you tied up in the project is not an investment; it is truly working capital that you use to run your business. If you bor-rowed “hard money” to do the project, you probably have a time-bomb ticking. When you have fixed the property, you must flip it, at the market price, or even at a discount to make sure it moves quickly.

Time traps awaiting short-term investors (fix and flippers):

Homework time trap: Time cannot cure a high purchase price. To succeed, you must buy low or walk away.Emotional Time Trap: Time cannot cure a busted project. If the project went wrong, take the loss and flip it anyway. If you don’t, you are out of business.

Time rewards the fix/flipper who moves swiftly. If you make many offers swiftly, eventually some seller will take your low-ball offer. The faster you make many of-fers, the faster you get one accepted. Go fast on the buying end of the project. The same goes for the fixing. The faster you fix the property, the faster you can sell it. The same goes for selling. Cut the price and offer some sweeteners to the buyer who can move quickly. Make your profit on the purchase, take your profit on the sale, and move on to the next one. Speed is one secret for fix/flippers. Time rewards the fast fix/flipper with more projects, lower holding costs, and more to-tal profit.Time for Buy/Hold Real Estate InvestorsFor a long-term buy/hold real estate inves-tor, time works differently, setting two dif-ferent traps, both at the front end. Both ap-preciation and cash flow can work for the

long-term investor, so the purchase price is not as critical, although buying low is al-ways an advantage. Time sets a homework trap with an infinity of choices. You can look at any type of property, from single-family to multi-unit to commercial or even industrial and raw land. You can look at property everywhere, from North Dakota to New York City, from El Salvador to Thailand. How do you narrow the choices? Get lost in the analysis and you never buy any property at all. Don’t do the homework

and you end up with a condo in Detroit or Miami that you cannot rent and you cannot afford the HOA fees. You need a strategy to identify locations and properties that will hold value and grow for at least a decade. What’s your plan? Probably you cannot afford negative cash flow for ten years, or even longer, while the beach-front property in Paraguay increases in value. Oh, wait. Does Paraguay even have a beach-front? Long-term property investment requires positive cash flow.

A little plug here for RBS Homes: we have analyzed over 500 major metro ar-eas to identify the very few cities that will show long-term growth in property value and rental income for the next ten years. Call me (925-858-9017) to find out how.

The Final Time Trap: Is now the right time to buy?

A few points may be helpful if you are sit-ting on the fence just waiting to jump into real estate “when the time is right.”

•Mortgage rates are at all time lows.•Property values have dropped 20% - 35% nationwide, and more in some areas. •New construction has dropped to the low-est rate since World War II.•Real estate investments are producing cash returns of 12% -35%, depending upon the region you choose.•Have you checked your stock portfolio lately? How’s that working for you?In closing, I’ll answer the question of the final time trap with another question:If not now, when?With my very best wishes for your success in real estate investing,

Richard Barrett, PartnerRBS Homes, www.RBSHomes.comph: 925-858-9017

What is Your Real Estate Time?


In Memory: We regret to inform readers that Dr. Richard Tingley passed away in early August.

Hi everyone! I have been involved in real estate for the last 30 years and I have been coaching for the

last 16 years. I have coached for Carl-son Sheets, AD Kessler, Robert Allen, Al Lowry, and most recently for Armando Montelongo. Each program was unique depending upon how the “guru” wanted his material presented.

I have really enjoyed my time with each of these individuals and over the years have picked up many great ideas.

Today, I want to talk about how to buy, fix and flip a house. I would like to focus on the formula to choose a home you wish to buy, fix and flip. The first thing is to know what the home will sell for, once it’s fixed

up. When I go out with a REALTOR® to look at a property, I ask them to provide two or three comparables for each of the properties I am considering. The compa-rables should be just normal properties, not REO or short sales. Once I look at the com-parables, I will generally do a formulation like this:

I will take 70% of the comparables. I do know that most lenders wish to loan 65% but your chance of getting a property at 65% are slim to nil. Once we get the 70% price, you subtract out the cost of repairs and the cost of getting a hard money lender. What is left is what you can safely pay for

the home. Presenting this offer works best when you are making it on a bank-owned property. You have to take the rehab cost and the cost of the loan into consideration so that there is a profit margin for you.

For example, let’s say the after repair value (ARV) is $200,000. The REAL-TOR® has shown a few comparables to confirm that the home we are looking at is worth $200,000.

Here is an example:

$200,000 X .70 = $140,000 minus $20,000 for rehab cost (The typi-cal cost of minor rehab).

Take this $120,000 subtract $14,000 for hard money costs = $106,000.

This is what you would typically pay for the house.To purchase Dr. Tingley’s book or learn more about his legacy, please visit: www.RealEstateInvestorsStore.com

The Coach’s CornerDr. Tingley mentors students & helps them achieve success

Once we get the 70% price, you subtract out the cost of re-pairs and the cost of getting a hard money lender.

People in California are used to commuting long hours for work, but one investor is adding more miles than usual on his odometer.

Richard Edrosolan, CEO and founder of Whiterock Capital, leaves his golf course estate near the Pacific Ocean (in Ven-tura County) to go to a red hot market: Phoe-nix, AZ. “I’m doing four rehabs there right now,” says the 30-year real estate vet- eran. Richard works short sales, REOs and trust deeds.

He has experience in buying at both the California and Arizona auctions. “I just finished three rehabs in California and I’m doing two more as well. ”He has rehabbed properties throughout Southern California, includ-ing Los Angeles, Ventura and San Ber-nardino counties.

The reason the California rehabber went out of state is purely financial. “The price points are so different here,” he says during a telephone interview. “A house that in California would be

about $700,000 will cost around $175,000 here,” he says. “You can make 18% to 20% return without batting an eye.”

Edrosolan was also lured to Arizona by cheap labor and supply costs. “I can get a whole house done for under $8,000,” he ex-plains. The master rehabber has worked multiple markets around the nation, including: Georgia, Utah, Texas, Washington, Nevada, South Carolina and Hawaii.

His quest for cash flow and diversification led him outside of his home state early on. “I realized early on that it was foolish to only work the California market because it was foolish to tie up so much money just in one deal. Phoenix is great because California investors can go back and forth easily.”

One of the Richard’s niches is to find absolutely discounted deals for himself as well as the investors that entrust him with the privilege of expanding their portfolios.

Another of Richard’s niches is to find absolutely discounted deals, which are purchased for cash. The properties are then resold to locals at market value, with seller financing in place. The new buyers happily pay him a large cash down payment and they are willing to pay higher interest rates in exchange for the opportunity to own a home.

Richard can find investors solid rentals in the $20,000 to $70,000 range, generating anywhere from $650 to $800 month in rents. Typically, he likes to buy in working class areas and his bilin-gual skills serve him in dealing with his mostly Spanish-speaking Arizonian retail home buyers.

Currently, he is picking up as many rentals as he can for himself

and his clients. He recommends that other inves-tors start or ex-pand their port-folio by adding in some Arizo-na rentals. For clients who are not interested in landlording but are looking for passive in-

come, He has a private lending program where investors receive 10% interest on their funds, secured by a first position title on the property. He says “We can customize an investing plan for any-one!” Arizona is providing Richard and his investors with such great cash-flow that he plans on “bouncing back and forth” for a long time. He adds: “I have great people around me. I have a great team and we work hand in hand.

Richard’s quest for rock-bottom deals and passive income for himself and his clients has taken him to many places around the country, yet Arizona’s close proximity and high returns will make him a part-time Phoenix resident for years to come.

Market Spotlight: Phoenix, AZ LOCATION: Phoenix, Ariz. COMPANY: Whiterock Capital, Inc. CONTACT: Richard Edrosolin or Clarence Eleccion (888) 289-0221


by Bill J. Gatten, NARSCor, LLC

Examine a few selections from the Top-Ten List of the Best Excuses for Failing, and see if any apply to

you (…and remember: “He who hesitates almost always wishes he hadn’t,” and “ex-cuses and reasons are virtually indistin-guishable, and good reasons for failure.) In my business of teaching Creative Real Estate buying, selling, investing and man-aging I am always astonished at the num-ber of people who subscribe to my training and mentoring programs and consider it the finest financial choice they ever made…then never do a single transaction.

I’m told that the industry average is something like 5%. In other words, of the people who buy books and courses and attend the seminars, 95% never do any-thing with the education they paid for and receive. When I discovered this I was ap-palled, but in checking our own records I found that we were slightly ahead of most, but not by much…about 7% versus 5%.

A dear friend, now deceased, A.D. Kes-sler, upon discovering this ratio of success versus failure decided to do something about it by putting a $100 cashier’s check in each of his materials packages and counting the number of checks that actu-ally came back cashed. He came up with the same percent, 5%. In order to better this mark he began offering ongoing train-ing, personal coaching, and newsletters, annual re-treat meetings and so on. His re-sult? He increased his success rate to about 8% - 9%. By following his lead, we are able to get about the same results (7% - 8% at last count).

Folks, this is terrible and wholly unac-ceptable! After reading this article I’d like to have ANYONE tell me why any-one with half a brain doing no more than reading this article couldn’t make a ton of money in a short time. I’m prepared to see our numbers remain stable if I have to, but I will still scream to the heavens that I don’t know why this has to be the case. What’s so difficult here? ‘Find an unwant-ed property…find an unwanted buyer who wants the property, take it off the owner’s hands…then squeeze them together until the money squirts out. That’s it! It’s merely

Top 20 Excuses fora matter of knowing how to do that and breaking some men-tal molds.

THE LIST1.“I do everything my mentor and the gurus tell me to, but appreciation’s so good in my area that sellers don’t want to make deals”2“I do everything the gurus tell me to, but prospective buyers are broke and equity is non-existent”3.“I keep on trying, but the financial con-dition of the country, and especially in MY area, is just too tough to be able to make any money” 4.“I keep plugging away, but there’s a rental shortage here and sellers are unwilling to make deals because they can rent a house out in a minute for more than normal rent”5.“I want to buy and hold, but rentals abound here, and the competition and the economy, eliminates any chance for break-even rents”6. “I do everything I can, but rentals in my area are scarce and rents are high, so nobody wants to let their properties go” 7. “I tried, but found too much competition out there” 8. “The course says don’t deal with REAL-TORS® and to go after the fixer-flips; but FSBO fixer-upper prospects with any equity at all are just nowhere to be found”9. “I’ve called a few prospects, but REAL-TORS® in my area don’t want to work with Creative Finance types like me”10. “I’ve bought a bunch of No-Money Down courses, and the techniques taught all sound good at first, but just don’t work for me”11. “I try to talk to potential sellers by the dozens, but they figure me out right away and are not interested in “creative financ-ing”12.“One has to have money and decent credit in order to make money and I don’t have either”13. “Every time I find what I think might be a deal, I find out that the property is over-en-cumbered and fraught with back payments and unpaid taxes”14. “People who sell books and courses make their money from selling books and

courses and don’t do what they teach, and have no contact with reality”15. “When I see how many foreclosures are happening and how many investors are losing money, I can’t bring myself to jump into what is obviously a losing business”16. “Every guru I get involved with who has made a ton of money on creative fi-nancing made it a long time ago and is now either broke or almost broke”17. “I just don’t have enough hours in a day, working my own job plus trying to be a real estate investor”18. “I joined a real estate investment club and find that 75% of the people there have never bought a stick of property and the 25% who have are people with money and good credit”19. “I want to be wealthy, but can’t bring myself to change my job or my lifestyle and take those kind of chances”20. “I bought three properties two years and followed all the rules, but as soon as I got them the bottom fell out of the market and I lost them along with my life’s savings and all my good credit and am now close to being sued by the lenders for my deficien-cies and back payments”

Free Houses. Now let’s go back and count the number of these excuses that apply to you (if any) and how many of those are actually based upon insurmountable ob-stacles, and how many are no more than excuses for not doing what needs to be done..

Then let’s see how many of those excus-es become foundationless when one adopts the use of the © Title Holding Land Trust Transfer via the NARSCor PACTrust™ or NEHTrust™.

This is to say the property is placed into a specialized inter vivos trust by the seller with payments being taken over by you as the seller’s co-beneficiary, whereupon you appoint a third-party as a resident co-beneficiary who lives in the property, cov-ering all mortgage payments, property tax


FAILURE

Top 20 Excuses for and insurance, thereby leaving you with a bit of a positive cash flow and a large share in future equity build-up from principal reduction and appreciation…and all without credit qualify-ing or a down payment.

Remember that this type of “seller” is not worried about money upfront (as there is no equity to sell) or allowing you and your resident co-beneficia-ry take over his Pain and get him away from his cash-drain and the threat of foreclosure and deficiency judgment. Your resident beneficiary is not con-cerned about the over encum-brance, as he only cares about an affordable payment and a much nicer home than he could ever afford otherwise. Also…if the monthly payment is way out of line for that type of prop-erty, the seller (relinquishing party) won’t mind paying a part of it (perhaps just the property tax and/or insurance), which will be a lot better for him than the amount he’s been paying: i.e., the full mortgage payments PLUS property tax, insurance and homeowner’s association dues.

In the above scenario, ask yourself whose credit is at risk here; who is making the pay-ments for you; who is getting a free house (or part of one); and who has a virtually risk-free real estate investment despite having had no cash or credit to start off with.

Want more free houses? NARSCor offers a mortgage amelioration program where-by we effect mortgage loan elimination, and then sell the property, sharing our proceeds with our finders and network members at the rate of 10 to 50 percent of our profit potential. (For example, on a $1 million eliminated or compromised mortgage, depending upon your status with us (Finder or paid Network Member), you either get $50,000, $125,000 or

$250,000 when I sell the prop-erty following our expunge-ment of the loan. Our success thus far = 100 plus transactions closed; 150 in various stages of progress and 15 new closures in final negotiations. To initiate handling for a homeowner (in foreclosure or not…even after the bank’s sale of the proper-ty), we need $7,995 upfront for a refundable Trust Contingen-cy Fund in order to handle the transaction, and that money is always fully refunded (100%) in full whether we would be successful or not.

More free houses? Bring us a short sale that we can close and you’ll end-up with 10, 25 or 50 percent of the profit upon re-sale.

More? Find a large, fur-nished home that would be desirable as a prime vacation home, that is (may be) over-encumbered (and where the payments are too high for the owner); then agree to take over the payments and man-agement responsibilities. You then put the property into the NEHTrust™ and bring in as many co-beneficiaries as you want who will use the property for a specified number of days or weeks per-year. Divide the current monthly obligation by 10 or 12 to establish what each of your co-beneficiaries will pay per-month for their share, and you then charge, say $10,000 to $15,000 from each party for their respective “time share” rights. It’s easy to calculate what your up front moneys are going to be and how much monthly positive cash flow you will have with, say, twenty co-beneficiaries. A couple of these might set you up nicely for life.

Be sure to read the second part of this article, with the answers to The List in the next issue! For information on Bill Gat-ten, email [email protected]


CONTACT USBILL GATTEN CENTERfor Wealth & Education6520 Platt Ave., St. 548West Hills, CA 91307

1 800 409 3444FAX 1 800 967 [email protected]

Bill GattenRenowned AuthorNational Lecturer

& Investor

FAILURE

In the game of Monop-oly there is a secret that will

make you very rich. What is the one secret in Mo-nopoly that allows you to win game every single time? Now, some people might say buy four green homes and then a hotel. Well, that is

a good guess but there is no guarantee that you will win.

We’re talking about the secret that allows you to win the game every single time. Some people might say buy Boardwalk and Park Place. That is another good guess, but there is no guarantee that anyone is going to land on these sections, so there is no way to guarantee that you are going to win the game every single time.

We’re talking about a secret that allows you to win the game every single time you play. What is that one secret? It turns out it is being the bank. If you think about it, in the game you’ve got up to six investors run-ning around trying to buy all the land, try-ing to build on the land, etc. And ultimately one person out of the six will win the game. The banker always wins the game. Think about that for a second.

Now, in reality and in life, if you think about it there are many, many investors out there and only a few make it. But the bankers always win. We want you to think about the game of Monopoly as really two games; there is the banker’s game and then there is the investor’s game. In real life it’s the same thing; you have the banker’s game and you’ve got the investor’s game.

In Monopoly, you can actually own all the real estate and still run out of money. You can have apartments, but if you run out of money you start having to turn those Monopoly cards over and leverage just like in real life. When you run out of money and you have no more cash flow as a real estate investor, you go broke. We have seen liter-ally thousands of people have that happen.

Some of you may be thinking that being the banker isn’t a whole lot of fun because you just sit back. Well, similarly for being bank, you can collect the big profits and do

THE MONOPOLY SECRET!

Realty411Guide.com PAGE 38• 2011 reWEALTHmag.com

very, very little work, but you receive all the profits. We call that passive income

. INVESTORS VS. BANKERS

We want you to realize that this is coming from a place where we have been on both sides. We’ve been investors and we’ve been bankers or lenders. We want you to see both sides

and we speak from experience. So let’s take a banker versus investor

and let’s look at the comparison. First off, as an investor, particularly a real estate investor, you

have to go out and learn the techniques. For most people that means either learning how to wholesale or do short sale deals, or buy apartments, buy bank owned REOs, vacant land, etc. Many of you have spent literally tens of thousands and in some cases even a lot more learning all of these techniques.

You then have to figure out how to mar-ket in a competing market for all of these deals. Most people have to send out post-cards or letters or buy Web sites and spend a huge amount of money on marketing. Then they have to deal with sellers and talk to sellers, in some cases they have to deal with REALTORS®, they have to find buyers, sometimes wholesale buyers, they have to deal with tenants and toilets, they have to work with contractors and rehab-bers and all the headaches. They write of-fers and in some cases dozens and dozens of offers before they get any accepted.

Once they have those offers, then they have to go talk with lenders or bankers to get the money and get access to the money. They have to deal with tenants if they are holding properties or holding apartments. They have to go out and deal with all the tenants and all the problems with tenants. They have to make the repairs and fix ups and deal with problems that can go wrong. And they are typically the last to make any money.

Now let’s look at the comparison of the banker. First off, you don’t actually have to go and learn all the techniques of buying and selling and wholesaling. You learn one thing and that is how to become the banker and what we call The Banker’s Code. You don’t have to do any marketing. All the hard work is done by the real estate inves-tors, you don’t deal with sellers, you don’t

deal with REALTORS®. You don’t deal with buyers or tenants. You don’t have to write any offers.

You see, instead of dealing with lenders, you are the bank and you get to deal with those hungry borrowers and investors out there who are finding incredible deals. The best part is that now they are coming to you to get their deals funded.

Lastly, you don’t have to deal with ten-ants, you don’t have to do any of the fix ups, you don’t have to deal with any of the problems, and you are the first to make the money. Because who always gets paid first? The Banker.

One thing that is not obvious here is that as a banker you never have to get a mort-gage. As an investor, you still have to get a mortgage. As a banker, you don’t have to have good credit. In fact, you don’t have to have any cash. The investor needs to have both of them.

Let’s just say the bank is lending money to three different people. One is a whole-saler, one is an expert in short sales, and has been doing it for ten years and the other person is an expert in rehabbing properties and has been doing it for eight years and has a whole crew. What is happening here is that the lender is leveraging all of these people’s experience without having to go out and go to a seminar and learn how to do all of this stuff.

What they are doing is leveraging all three borrower’s experience and they are the first ones to make the money. So you have someone else learning how to do all of this on their dime and the bank is ben-efiting from all of that and leveraging all these people’s time.

One of the questions that has come up is around the marketing. How does a banker get around marketing? When a real estate investor goes out and does all the work and finds the deals, what do they need to do? They need to get them funded. There are tens of thousands, if not hundreds of thousands of incredible real estate deals that real estate investors are looking to get funded. So it is one of the easiest things to find great deals.

In fact, at the Banker’s Code Seminar (http://thebankerscode.com/wow/), we spent a lot of time practicing and a lot time walking through exactly how to find all these great deals. Be sure to get the continuation of this re-port a t : www.WealthClasses .com/ Realty411



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Gary Boomershine and George Antone

DivasMeet the Real Estate��

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Meet a new breed of real estate investors. They’re young, hip and... female!

Welcome to the Real Estate Divas section, featuring some of the most influential wom-en in the industry today. Their expertise ranges from bulk REOs, syndications, fix-and-flips, IRA investing and landlording. While their strategies for wealth creation may vary, they all share the same goal: To create a cash-flowing and appreciating portfolio for their clients and their families.

Photograph above from left: Kathy Fettke, Lori Greymont, Terica Kindred and Missy McCallPhotograph below from left: Kaaren Hall, Erica Reynolds and Crystal Han

Linda Pliagasfounder & publisher


Lori Fouts - Independent Associate510.520.2753 | [email protected]. prepaidlegal.com/hub/lorifouts

What do you get when you’re a member of Pre-Paid Legal?Confidence in your daily decisions. Peace of mind with your personal affairs. Security for your family. Protection of your legal rights. Advice from courteous and concerned attorneys. Answers to your questions. Call today for more information on how to access the legal system!

In v e s t o r s all fondly remember the heyday of real es-tate a few

years ago. A magi-cal time when no money was needed for silly things like down payments and acquisition costs. If

one had the motivation to be an investor, real estate was attain-able regardless of reserves or occupation. Well, now Terica Kindred is bringing those days back with her unique system. (see ZeroMoneyInvestment.com). “I want to help inves-tors buy property without them having to liquidate their IRAs or savings,” she says.

Kindred says that in order to make Zero Down Deals, cre-ativity is key. She credits her loyal team of private and hard money lenders, who put up the funds and take on the risk so she can offer exceptional deals to investors around the world.

One thing about Kindred is that she’s all about systems. After all, she began to work in Corporate America after she graduated with a computer sci-ence degree from University of California, Irvine. Kindred burned both ends of the career candle by juggling a flexible career as a technology consul-tant with real estate. However, after working for Deloitte for many years, she decided to concentrate solely on real es-tate. “When I was able to re-place my yearly salary in one month, I knew it was time to leave,” she admits.

Now, Kindred’s goal is to help others also get out of the rat race. “By leverageing real

estate, you can quit your day job.” In fact, her system can emancipate 9-to-5ers forever by replacing their income with monthly rental cash flow.

“My properties are deeply discounted and they are re-habbed, rented and

ready to go.” At the time of the interview, she was rehabbing properties in Atlanta (her home city) and had just finished other projects in Memphis and Ari-zona. Although she divides her time between Atlanta and Los Angeles, her “farm” is nation-al. Kindred has done deals in Indianapolis, Kansas City, St. Louis, Jackson, Birmingham and Memphis. She also does rehabs in her home state of Cal-ifornia and she is also scouting Chicago for future ventures.

She works multiple mar-kets, not because she likes to be spread out, but it is due to necessity. “These properties are not easy to find, we may have only two deals in one city per month,” she admits. Kindred’s criteria for finding deals is very specific, in order for Zero Down Deals to happen, the properties have to fit stringent guidelines.

Kindred uses her expertise in technology in her business with clients: “Ninety seven percent of our investors are out of state,” she says, adding “We take pictures, video, we use Photobucket and YouTube. We also get the property exam-ined by a third-party inspector to make sure everything is up to code before our investors close.”

Besides the gratification of

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Terica K. Brings ZERO DOWN BACK


How to Flip Vacant Land to Developers

Terica K. Brings ZERO DOWN BACK

While building has come to a com-plete stop in the exburbs (areas

beyond the suburbs), infill proj-ects near major metropolitan areas are hot.

In fact, finished lots in good locations are becoming a rare commodity as more consum-ers become less willing to make long commutes. John Burns Real Estate Con-sulting group expects land de-velopment in good locations to increase substantially this year now that conservative bank fi-nancing has returned. Public builders are buying finished lots near large cities at a faster rate than private builders, and their market share is growing rapidly.

Does this mean you should run out and buy some land so you can sell it to a public build-er? Not exactly. Slick salespeo-ple have been hawking “land banking” for years, trying to get investors to hold land until it becomes valuable. Unfortu-nately, that could be a really long wait if the land is out in the exburbs where there’s al-ready an oversupply of homes from overbuilding in the early 2000s. Holding land in the outskirts can be costly if you add the missed opportunity of creat-ing income from that asset. Let’s say, for example, that you used your IRA to buy $100,000 worth of land that is located over an hour from the city. How long will it take before builders

are needed there for the lots to become valuable? Based on the amount of inventory for sale to-day, it could take decades. If you invested that $100,000 to buy a home instead of land, you could earn $10,000 net in-come each year. After 10 years, you would have doubled your money. Would the lot out in the booonies double in value over that amount of time? No one knows for sure, but we do know that one strategy is predictable and the other is speculative. At Real Wealth Network, we have found that infill projects are a safer bet for land flipping, but they can be quite expen-sive. That’s why optioning the land can be a home-run. We recently optioned wa-terfront property in Alameda

that would cost $16 million to purchase, but only $2.4 million to option. We took the option! In the meantime, we will get the property entitled within 18 months, and then sell the 110 finished lots to builders for a total of $28 million. The $10 million dollar profit will be split amongst the owners and investors. In order to acquire this deal, we were able to find 48 investors to put up $50,000 each. ROI is expected to exceed 67%. To find out more about this and other projects, go to http://www.realwealthnetwork.com/alameda-terminal or sign up for a free membership at www.RealWealthNetwork.com for cutting edge investor education and turn-key properties.

article by Kathy FettkeCEO of the Real Wealth Network


So…you’ve started on the road to real estate investing: You’ve purchased a property(ties) to add to your portfolio. You can relax, sit back and wait for

those rent checks to roll in…right? NO! A critical piece of the investment puzzle is protecting your assets and that translates to two words: Property Management.

A property management company in-

sures that your investments are maintained and rented or rent-ready after a vacancy. In my opinion, whether you’re a fledgling or seasoned investor, a qualified property management company is a necessity. The everyday details and tasks of maintaining and renting properties can be daunting. We all know that time is money and your time can be better spent on finding more proper-ties and building your portfolio and leave managing your rentals to the professionals.

Why is a property manager critical? A qualified management company will prove to be invaluable. They are the key to your financial success after you have se-lected a perfect property. They will handle the entire rental process from marketing, showing, qualifying prospective tenants, and the lease signings.

Starting with a thorough screening, which includes a background check, rental and employment verification, and contact-ing previous landlords. You should ask the property management company for a copy of there leasing criteria. They should have a rental procedure, in writing about how a potential tenant is evaluated and accepted.

Once a tenant is occupying the prop-erty, the management company will be responsible for scheduling and completing maintenance issues, tenant disputes or con-cerns. Your property manager should have existing relationships with contractors and

best case scenario would be if they have their own maintenance team. It is impor-tant to understand how you will be billed for these services. Most property manag-ers have an “up charge” for managing the contractors. The norm for this service is between 10-20%. I have seen companies as high as 40%. If you don’t ask the ques-tion, you don’t know what you are going to be charged.

You should ask how you are billed and if there is evidence the repairs have been made. I can’t tell you the number of clients that have told me about buying appliances for there rental that was never delivered. I picture tells the story!!!

Finally, you need to know their policy on how a tenant requests a repair and their policy on when and how quickly repairs are done. The number one cause for ten-ants moving is a property not being main-tained. A vacant property doesn’t make you money!

Last, but most important, is how your money is collected? What is the procedure for the collection of rents, monthly state-ments, filing evictions? If they just expect the tenant to send them money on the first and don’t have a billing process, you might want to keep looking! How much are late fees? Who gets them when they are col-lected, and how do your receive general accounting information.

What should I look for in a property management company?

It’s imperative that you do your due diligence in your search for a property management company to entrust your real estate assets. Thoroughly research the company’s history: length of time in busi-ness, how many properties do they man-age, do they handle both single and multi-families. Talk with past and present clients, ask for a testimonial as to their experiences

with the company. Meet with the staff, of-fice and maintenance. Are all familiar and well-versed with current property and Fair Housing laws? Inquire as to the handling of rent collection, monthly statements, eviction procedures, knowledge of Section 8. Vacancies need to be filled as quickly as possible. What’s their vacancy rate? Aver-age time from a tenant vacating to the new tenant’s lease signing? Effective advertis-

ing is crucial to having a large pool of qual-ified prospective tenants to choose.

We strongly encourage potential tenants to get pre-approved when we receive no-tice that a property will be vacated: Often, we have a deposit and tenant ready to go

and our vacant-to-rented time is 0 days!!Missy McCall Hammonds has perfected the art of prop-erty management. Missy has

bought and sold many properties and her company currently owns and manages in excess of 350 rental units. When asked her secret to successful property managing, the reply is to have a professional, competent maintenance and rehab team in place. As with all aspects of Missy’s success in real estate, she stresses the importance of sys-tems for managing properties. Missy’s team of qualified professionals are skilled in rehabbing and maintaining single and multi-families. They are responsible for preparing rentals for the market, daily work orders and maintenance in addition to total rehabs of newly-purchased proper-ties. Systems are implemented to facilitate the process of insuring that the properties are maintained and vacant-to-rental time is kept to a minimum. The maintenance team is available 24/7 for emergencies. Missy’s record of long-term tenants and reputation of quality rentals speaks volumes for her property management.


5 Years of Worry-Free Reliable Rentals!

Re t i r e W i t h Re a l E s t a t e . B i z

Property Management:The Key To Protecting

Your Investmentsby Missy McCall Hammonds

5 Years of Worry-Free Reliable Rentals!

• No Vacancies• No Maintenance Costs• No Management Fees• Already Rehabbed• Already Rented

“Our Turn-Key homes are really that simple. We have a time-tested system to assure that you have worry-free rentals. Our repeat buyers are our proof! ”

Re t i r e W i t h Re a l E s t a t e . B i z

Call Today for a FREEReport on Selecting

Reliable Rentals! 513-275-1512

– Missy McCall Hammonds, CEODo you have questions? Contact Missy directly:[email protected]

A Powerhouse Lineup of Top Industry Experts Presents the Insider’s Edge on The State of Real Estate 2011

www.ISurvived2011.com or 951-780-5856

Bruce Norris President

The Norris Group

Sara Stephens President Elect

Appraisal Institute

Vicki Golder Immediate Past President National Assoc. of Realtors

Sean O’Toole President

Foreclosure Radar

Eric Janszen Economist & Financial

Analyst of iTulip

Doug Duncan Chief Economist

Fannie Mae

Deb Still 2011/12 President Elect

Mortgage Bankers Assoc.

The Norris Group’s award-winning event returns October 14, 2011 to the Nixon Library in Yorba Linda, California. We’ve booked an all-star team of accomplished industry specialists to discuss the current state of real estate. Expect to walk away with a firm grip on industry regula ons, upcoming legisla on, bailouts, and where real estate professionals — people just like you — find the best opportuni es. This year’s line up includes:

Beyond the great networking with like-minded real estate professionals, 100% of the proceeds go to benefit the Orange County Affiliate of Susan G Komen for the Cure. Since 2008, I Survived Real Estate has been responsible for raising over $180,000 for one of the largest na onwide breast cancer research nonprofits.

MVT PRODUCTIONS

Adrenaline Athle cs Coldwell Banker Pioneer Real Estate Delmae Proper esElite Auc ons Inland Empire Investors Forum (IEIF)Kellar Williams Realty, Corona Market CenterKucan & Clark Partners, LLCLas Brisas Escrow

Leivas Associates Mike Cantu Northern California Real Estate Investors Associa on (NORCALREIA)Northern San Diego Real Estate Investors Associa on (NDSREI)Pacific Sunrise MortgagePersonal Real Estate Magazine

Realty 411 Magazine Rick and LeaAnne Rossiter Southwest Riverside County Board of Realtors (SRCAR) Starz PhotographyTom Wilson Investments Tony Alvarez Wes n South Coast PlazaG

OLD

SPO

NSO

RS

411-mag-8.125x10.5.indd 1 7/29/2011 11:18:09 AM

Armed with a 16-year background in real estate, property

management and mortgage lending, Kaaren Hall helps hundreds of individuals take control of their retirement. As president and founder of uDirect IRA Services, LLC, Hall educates and helps her clients invest in real estate and alternative investments using their Individual Retirement Accounts. Hall believes so strongly in the education aspect of her business that the busy mother of two travels hundreds of miles through-out Southern California to attend real es-tate club meetings and events.

We recently asked Hall to enlighten readers about the self direction process in an effort to inspire them to be more proac-tive about their own retirement.

Question: Why is it such an exciting time to self-direct your retirement?Answer: Well if you ask me, it’s always an exciting time to self-direct your IRA if you like being responsible for your own future. Right now is especially exciting because of the tremendous opportunities in the mar-ketplace. Even economic down-turns cre-ate prosperity, and I see that with uDirect account holders. Because a self-directed IRA lets you invest in anything (except life insurance and collectibles), there are hun-dreds of possibilities.

Q: Do you still come across people who are not aware of self direction?A: I do, all the time! It amazes me that after 35 plus years so many people (even sophis-ticated investors) do not know about self-directed investing! I call it the “best-kept secret,” but of course, it’s no secret at all. Just visit www.IRS.gov Pub 590, which talks about IRA guidelines and goes over the rules. I think it’s because most people invest passively. That is, they have a job and put money in a 401(k) and don’t think about it. Those funds are usually invested in the stock market. So, when people leave

their jobs and have a 401(k) to rollover, they typically think the stock market is their only option. Their investment advisor typically has no profit motive to tell them they can invest elsewhere. But for those wise few who look out-side the box, they find they have a lot more power and control over their retirement money than they thought.

Q: From your experience, what is the most popular type of IRA, the Roth or the Traditional? A: What I observe at uDirect IRA Services is that most people have a traditional IRA. The reason for this is that most IRAs are rolled over from employer plans. These employer plans are pre-tax plans (the ac-count holder took a tax deduction for mak-ing the contribution) so when they rollover their funds, they find a similar account. The second most common type of account is the Roth. People love the Roth IRA be-cause the gains are tax-free for life. You can always convert pre-tax accounts to Roth, by the way. In fact, in 2010 an act called T.I.P.R.A. created a rule that you can convert regardless of your income. When it comes to the Roth there is, however, a cap on how much you can earn to contribute. These rules are found on the IRS website and you can always ask your tax profes-sional about what type of account best suits your tax strategy.

Q: Besides real estate, what are some of popular alternative investments?A: Well real estate really is the most popu-lar investment. Real estate comes in all sorts of forms. There’s single-family hous-ing, apartments and commercial property. Some people like investing their retirement funds in raw land and some in passive real estate trusts (REITS). Still others will take their IRA and use it to lend money to real estate deals. Some like investing in real estate options. Aside from these kinds of investments, I see people invest in private stock. There are hundreds of private com-

panies looking for capital, promising a re-turn. Self-directed investors find that pre-cious metals are the right thing for them. A self-directed IRA can purchase the bullion and we store it for them. There is a long list of investment options on our website at wwwuDirectIRA.com.

Q: Can you tell us about the most cre-ative self-direction transaction that you’ve come across?A: I think the most creative transaction was a husband and wife who each had a Tra-ditional and a Roth IRA. They bought a piece of property using all four accounts! Husbands and wives are typically disal-lowed to each other, but as long as they close concurrently, they can invest together using IRA funds. It’s not just the fact that there were four accounts involved (and therefore 4 wires to escrow) but it’s that they were also using a land trust. At one point, the couple realized that the four ac-counts were cumbersome and decided to convert the pre-tax accounts to a Roth.

In order to do this the asset had to be valuated, and then it could be converted. So now their two accounts share a piece of real estate through a land trust through their self-directed IRA. Their proceeds are tax-free for life.

Q. Do you have clients around the coun-try or mostly in Southern California?uDirect IRA Services account holders are primarily in Southern California but we have clients from every state. I do a lot of speaking in Los Angeles, Orange and San Diego counties and so most of our clients come from these areas. No matter what state (or country) a person lives in, if they pay U.S. taxes, they are eligible for an IRA and we can help them self-direct their funds into the investments of their choice.

Kaaren Hall of uDirect IRA ServicesQuestion and Answer with...

Because a self-directed IRA lets you invest in anything (except life insurance and collectibles), there are hun-dreds of possibilities.


More Marketing =More MoneyCrystal Han from 360 Investments Reveals How to Get the Most Bang for Your Buck

Does more marketing really equal more money in the real estate industry? Real estate buying, selling, list-ing, lending, investing,

holding, wholesaling, flipping, rehabbing, developing, inspecting, appraising, insur-ing, and closing are all considered a busi-ness; and to make it a profitable business, one must focus their time, energy, efforts and resources marketing its business’ prod-ucts and/or services to its target audience. You must first consider what your business is offering to its customers and figure out what will set you apart from the competi-tion. The most important element is de-termining your mission and to create your unique mission statement that will reflect who you are, what you do, and why you do it. There are so many marketing strategies you can utilize in your real estate business and the more you do, the more money will flow to you. Branding. Creating a brand that your customers recognize with a name, slogan and/or logo is a great tool many companies use to separate t h e m s e l v e s from their competition. It is also highly recommended to consult with a patent and trade-

mark attorney to make sure your branded name, slogan, and/or logo are available to register. Also, start to check out domains with the brand name to make sure “.com” or “.net” is available as well. Your brand should symbolize your business iden-tity and follow your mission. Market your brand through business cards, promotional products, brochures, stationary, car magnet and/or car wraps, stickers, banners, and anything else you can think of.

Our company name, 360 Investments® was created to represent an all encom-passing real estate investment company that provides all the tools, research, op-portunities, education, and contact sources to our selective client investors accepted into our circle. Our company name and logo has been registered with the US P a t e n t and Trade Mark Office so no o t h e r similar names or logos can be used. We spent a lot of money pro-tect- ing our marks and we consider

it a wise investment. Advertising. There are

many ways to advertise your business to reach

its target audience such as TV/Cable, Magazines, News-paper, Radio, Emailing Cam-paigns, Mailers, Postcards, Letter Campaigns, Door

Hangers, Google Ad words, sponsored

links and banners, Facebook Ads, and much more to choose from. Determine what fits your budget and remember that repetition is key, meaning repeating your advertising methods at least 5 to 7 times before seeing the fruits of its labor. Our company under-stands the importance of advertising and therefore continues to spend advertising dollars in magazines like Realty411, email campaigns/eblasts, and mailers. Title rep-resentatives are a great source to get farm-ing list/packages with tailored information to target your mailing campaigns such as letters to all out of state owners who may be distressed and motivated to seller their property. Online. With the internet accessible to most people these days, it has become increasing popular to use online marketing strategies. First and foremost, your business should have a website with information about your company, product, services, experience, background, and contact information.

Your web pages should include coded key terms for proper search engine optimi-zation (SEO) so that potential customers can find your website based on the words searched. Send out content rich newslet-ters to keep them up to date with news, events, announcements, and information.

Another popular approach is to create a blog that uses key terms in its title entry and have important words in the description following the title. Social media networks such as Twitter, Facebook, LinkedIn, and YouTube are great tools you can use to

The Business of Real Estate

Continued on pg. 54


More Marketing =More Money

Ready to Invest in

We offer Great ROI on Affordable Rental Homes!Everything in place, Turnkey deals and light fixers.

For information, contact:

Erica Reynolds

818-478-0737

Jackson, Mississippi?

We offer substantial savings because...

Personal Attention = Superior ResultsWe do not have a huge overhead.

Why Jackson?3 Growing Area3 Low Taxes3 Great Rental Market3 Affordable Properties

Sample Deal

“ Financing is available with 50% down”

Cash Flow in Jackson

For most people, a job lay off would be devastating, but for Erica Reynolds

losing her job was the motiva-tion she needed to start invest-ing.

“I hated that someone else had control of my life and fi-

nances. In addition, I wanted to create passive income,” she recalls.

Because Reynolds is based in Los Angeles, home of one of the highest-priced markets in the nation, she decided to invest in other states

“We live in one of the most expensive markets in the na-tion, that is why I own rentals long distance.” Reynolds says the ROI is “way better” in other states. “Cash flow is wonder-ful and properties are affordable.”

When asked how she did it, she replies: “I got started by developing a trustworthy team who could be my eyes while I am far away, working with a great property manager and

a man on the ground.” Since then, Reynolds, who describes herself as a buy-and-hold investor, has been managing her investments from afar. For her, it has been a profitable move. “My experience has been great. Property management has been a big key factor,” she explains.

Reynolds is now going beyond just buying assets for her-self, she now also helps find properties for others. She has developed a loyal following and is garnishing a reputation among real estate groups as a strong proponent of out of state investing.

Although Reynolds has invested in many markets, includ-ing Dallas and Indianapolis, currently she is excited about Jackson, Miss. “It’s an excellent rental market. This market is very affordable,” she continues. “What I love about Mis-sissippi is that the property taxes are really low. Jackson is known as ‘the city of soul.’ The area has experienced steady growth in the rental market.”

Ongoing housing projects with big names like Habitat for Hu-manity, Oprah Winfrey, and Kevin Garnett have made a strong im-pact in the area. One of the most promising sectors for Jackson is the automobile industry. In fact, Nissan Motor Company employs more than 5,300 workers.

Reynolds also likes to invest in areas where there is a commit-ment to higher learning. “Jackson is home to many top schools and universities, such as Jackson State University, University of Mississippi Medical Center, Millsaps College and Belhaven Uni-versity.

When asked what her personal real estate goals are, she replies with missing a beat: “To help investors understand the importance of obtaining cash flow properties at this time.” If ever there was a time, that time is now, Reynolds explains. “In the words of one of my favorite mentors, Warren Buffet: ‘Buy when the bears are giv-ing them away.’” — by Linda PliagasTo contact Erica Reynolds, please contact her via email at:[email protected] or phone: 818-478-0737

In 2007, A job loss transformed Erica Reynolds into a real estate investor. Now, she’s creating cash flow for others

“What I love about Mississippi is the fact that property taxes are really low”


There’s a house on Vine Street in Atlanta. The homeowners default-ed and the bank fore-

closed. Then the property was listed at 80% of its value by an agent specializing in REOs. The three-bedroom, one-bath house in a decent working-class neighborhood didn’t sell. So the agent dropped the price. And dropped it again. Why wouldn’t the house sell? It was in good, not great, condition. The house didn’t sell because no one in the neighborhood could get a loan. Finally, the asset manager had to get the distressed prop-erty off the books. He slashed the asking price to $10,000 and listed it with other similarly priced houses, and then sent the bargain list to investors.

Distressed assets can be huge money makers for savvy inves-tors—as long as they follow the five principles for convert-ing empty properties into cash-producers.

1. Concentrate Efforts. De-cide in advance which areas of the country you’d like to invest in. You’ll find the best bargains in the mid-west and southeast. Focus on a few cities and learn as much as you can about them. Other investors are a great help with this investigation. Also read local blogs. What are properties renting for? What is the inventory?2. Do Due Diligence. Once you have focused on a few areas, start perusing lists of distressed assets. You’ll want the newest house you can find AND with the least liens. Make sure you adjust the offer price on this

to be in line with the neigh-borhood’s other distressed homes. All distressed prop-erties have liens, usually tax liens, but sometimes water or sewer liens. Factor those into your purchase price. Most on-line real estate sites can’t help much with understand-ing property condition. There is no substitute for feet on the ground, which leads us to….3. Build a Team. Because you’ve concentrated your ef-forts, it’s a lot easier to find someone willing to drive by a property and peek in the win-dows. This banking meltdown has allowed the creation of many support businesses for the banks to look at, price and manage their own distressed assets. You can search the inter-net for “Distressed Asset Man-agement”, “BPO’s”, “Drive-By Services” or a host of other words and pull resources that are your feet and eyes on the ground. Plug into the existing network of professionals and within a day or less you will know if you found a gem or not. And when you work with someone you like, call them back for repeat business. Rela-tionships are also key.4. Sell Quickly. There are more properties one the market than anyone can buy so how do you sell your property ahead of the neighbor? Finance your buyer. There are many creative fi-nancing methods that you can employ that offer you control and a great return. If your buyer can be approved by you, they can make a decision in days and be in the home in less than a week or two. This helps preserve your asset from van-

Leveraging Distressed Assets

By Lori Greymont


Owner financing is quickly gaining popularity as a way for sellers to sell property for top dollar without

relying on the bank financing that is avail-able (or not) to prospective buyers.

Unfortunately, most sellers (and the pro-fessionals who serve them) don’t seem to have a basic understanding of the second-ary note market, which profoundly affects the paper asset (the note) they are left hold-ing.

Sadly, this often equates into unneces-sary financial losses when the seller/note holder goes to sell all or part of their note to raise cash.

Seller financing helps sellers get top dol-lar for their property, Dawn makes sure

they get top dollar for their paper, by using her expertise to:•engineer the transaction intelligently •make sure the note documents are ac-curate and complete•fully underwrite the buyer

The following is an excerpt from her book, “Seller Financing on Steroids”. When sellers are going to become the bank on their own property, they need to learn to think like a bank, or hire their own personal underwriter.

Deadly Mistake #1: Take a small down payment, or none at all

Isn’t it amazing the price you can get for

your property if you don’t ask for a down payment? You can make owning a home cheaper than renting if you want to!

It’s OK with me if you take a small down payment to sell quickly for the price you want . . . just don’t be offended when I offer you a small price for your note, or I tell you I can only buy a partial, or that I can’t buy it at all.

Why? Because the risk of default is so high. If things got tough, it would be too easy for the buyer to just walk away, be-cause they don’t have enough ‘skin in the game’.

And actually, if they can no longer af-

7 Deadly and Common Mistakes to Avoid

When You Carry Paper


ford the payments, then it would be won-derful if they would just walk away. But normally, they don’t. They wait for you to foreclose on them. In California that can take anywhere from 5-18 months, in other states it can take 2-3 years . . . ouch.

Sure, you’ll get the property back, but after how many missed payments, and how much in legal fees? And will the property be trashed, and/or will the market be even softer when you finally have possession again?

Accepting a small down payment all too often translates into financial loss . . . there’s just not enough of a financial buf-fer if something goes sideways. It’s like sitting on a porcupine and wondering why you’re not feeling so cushy and cozy.

Take the largest down payment you can get. Getting a 20% down payment will greatly reduce the statistical likelihood of default (and make your note much more valuable). Remember when that’s what it took to buy a property? A 10% down pay-ment is usually acceptable for an owner oc-cupied single family residence (O/O SFR).

A down payment creates Protective Eq-uity. Protective equity protects the seller (note holder) from financial loss if the buy-er (note payor) defaults.

The larger the down payment, the greater the instant equity a buyer has. Think of a down payment as the layer of cream on a fresh cup of milk. The thicker the layer of cream, the richer and tastier it is.

If you get a 20% down payment or more, then you’ll have a note that’s worth holding or selling. It’ll be rich and tasty, and I’ll want to have it for dessert, sweetening up my portfolio of real estate notes.

If you’re going to take a small down pay-ment, you’ll want to find a way to reduce or eliminate your exposure to foreclosure (or the risk that a note buyer will have if they buy your note).

Perhaps you’ll want to create two notes instead of one, or use the Title Holding Land Trust to avoid foreclosure altogeth-er. There are some very innovative ways to structure transactions to maximize both real and paper assets. Sophisticated inves-tors are using these strategies every day.

Deadly Mistake #2: Don’t ask for the buyer’s SS# and don’t run a credit re-port, (or, if you’ve actually done these things, try to lose the credit application and report so it’s unavailable to give a prospective note buyer).

There have been a few times I’ve been able to offer a really good price for a note, just to have the deal fall apart because the note holders couldn’t come up with infor-mation like social security numbers for the Payors.

The investors out there that will pay the most for your note (ask you to take the smallest discount) will want you to have a Social Security number on the buyers (note Payors), and they’ll want their FICOs to be 620 or above.

There are note buyers out there that will buy your note even if you don’t have the buyer’s SS#, but they’ll probably be offer-ing you less for your note.

And even a great note by all other ac-counts will be hard to sell if the Payors’ credit scores are low. It’s often difficult to sell a note where the FICOs are coming in below 600.

Why? Because, statistically speaking, the lower the credit score, the greater the chances that the buyer (note payor) will default.

Have the buyer provide their SS# by filling out a credit application and signing it, run credit, and if it doesn’t come back above 620, run from the deal, unless...there are always ways to compensate for the risk of lending (your equity) to a buyer with poor credit, but still, it’s a tough conversa-tion with credit scores in the 500s.

If you’re going to do the deal anyway, be sure to take a larger-than-average down payment, and be willing to season your note for a year or more. If you hire me as your personal underwriting department, I will make sure you minimize risk, and have a note I can buy at the soonest possible mo-ment for the highest possible price.

And even if you’re not thinking of sell-ing your note, don’t you want a strong in-vestment that doesn’t have you addicted

to Milk of Magnesia? Don’t you want to leave a good asset to your heirs and ben-eficiaries?

Putting your transaction together in a way that will make your paper (note) valu-able on the secondary market, will auto-matically assure you that you’ve placed yourself in the most powerful position possible, no matter what happens down the road. It provides the most flexibility and potential liquidity long term.

If the down payment is small, and the buyer’s credit scores are low, then I highly recommend that you consider using the Title Holding (Land) Trust, but only if you don’t plan on cashing out. You can’t sell a beneficial interest in a trust the same way you can sell a note).

Deadly Mistake #3: Lose the original note Deadly Mistake #4: Make the interest rate on the note nice and lowDeadly Mistake #5: Create a short-term balloonDeadly Mistake #6: Fail to include a provision for late payments and a due on sale clause to your noteDeadly Mistake #7: Don’t keep a care-ful accounting of the note payments you receive

A 32-page preview of “Seller Financing on Steroids” is available as a free download at www.NoteQueen.com. You can also buy the full ebook for $9.97, or order the pa-perback from Amazon for $14.97.

Those interested in learning “The Dance Between Property and Paper” will want to consider joining Owner Financing Club, a virtual real estate investment club focused on owner financing and notes: www.OwnerFinancingClub.com.

Seller Financing on STEROIDS

Dawn Rickabaugh, Broker, Owner Financing ConsultantWhen banks say NO, I say YES!

(626)470-3477

http://[email protected]

INVEST IN NOTES


long we have held it, rent value, etc. Typi-cally our terms range from 33% to 50% down payment, 8% to 9% interest, 30-year amortization with a 10 year balloon pay-ment. Again, each property and situation is different, so please check with us regarding available terms for that property. (Note: We are not a bank or public lender and will only owner finance our own properties.)

Retirement Accelerator ProgramIf you really want to accelerate your invest-ing, check out our Retirement Accelerator Program. The Accelerator Program is a simple concept that addresses many of our client’s primary objectives: “I want free & clear real estate as soon as possible.” By leveraging our properties with owner financing and then applying all the positive cash flow against the outstanding notes....the properties will essentially pay for themselves and will typically be free and clear within ten years. Much faster in some cases. You can view a short presentation on The Retirement Accelerator Program at: www.RetirementAP.com

Learn More About Our CompaniesDorfman Property Management: For over 35 years, Dorfman Property Man-agement has been Indianapolis’s premier property management company. Having worked with thousands of properties and property owners over the years, we fully understand the subtle nuances of the Indy market, and work diligently to get your properties leased FAST and with quality tenants. Contact us at 317-507-4323. InvestIndy.com: Invest Indy specializes in creating turnkey investing opportunities for local and na-tional investors looking to take a more pas-sive role in the process. Our experience al-lows our clients to leverage our knowledge in property acquisition, rehabilitation, ten-anting, and property management. Contact us at 317-507-4323.


InvestIndy.com is a real estate invest-ment firm focused on providing investors

alternative methods for purchasing real estate. Our aim is to help our clients utilize retirement assets to act as “cash buyers” in this market. We believe real estate inves-tors make money at the time of purchase, so we work hard to identify the best op-portunities for our clients. Ultimately, we believe smart real estate investing can pro-vide greater safety with higher returns than alternatives, and clients with retirement ac-counts need this important diversification tool. We seek appreciation opportunities with no debt and income properties with a cautious use of debt.

We design real estate investment strat-egies for our clients who utilize either self-directed retirement funds, or personal discretionary funds. We are proud that we are on the forefront of what we believe is a coming boom in retirement investing into real estate projects. We target double digit annualized returns for client portfolios. Ad-ditionally, the transparency of real estate investing allows clients to “see, touch, and feel” their investments and know where their money is invested.

InvestIndy.com designs the investments offered to clients into three categories:1. Wealth Building - Ideal for the majority of our clients who are looking for substan-tial growth in their portfolio. 2. Wealth/Income - The generation of both income and cash payments during the term; primary focus is on the larger gains at the end of the project term. 3. Income - Provides a steady cash flow stream. Perfect for investors entering the retirement phase.

Our clients are the sole director of their capital. Invest Indy performs a thorough due diligence process on each investment. Our clients have all the information nec-

essary to make an informed decision. Each investment has complete accounting of where the money is allocated and how the money is utilized. We also work directly with the client’s IRA

custodian or advisor and assist with all the necessary paperwork to ensure their invest-ment is as trouble-free as possible.

Owner Financing Opportunities for Leverage of Your Investment Capital

Ok...you probably already realize that real estate is an excellent place to invest your money. What has been holding you back? In some cases it may be a lack of experi-ence, or time to commit... but for most, it is a lack of capital to start with. Frankly, banks are not at all interested in loaning for investment properties. It is hard enough to get them to loan on a primary residence, let alone an investment property.

So how can you leverage your available capital to take advantage of this once in a lifetime real estate opportunity?

InvestIndy.com has the answer.........OWNER FINANCING!!

Because we own our properties outright, we have the ability to sell our properties with built-in owner financing. Most of the properties we sell to investors today are from our own portfolio that we have held for years. Not only does that give us a solid track record of documented performance, it allows us to sell off properties that we have already depreciated creating fantastic opportunities for new investors. They get a seasoned cash flow property, we get a solid performing note and mortgage on a prop-erty that we are confident in the value of. So how does it work? It is simple really.

Find a property on our website that you are interested in and check out the full de-tail section. Each property has slightly dif-ferent terms depending upon its value, how

InvestIndy.com adds NEW Spin to Passive Real Estate Investing


InvestIndy.com & Dorfman Property Management Have Combined Forces to Deliver…

“The Most Revolutionary Approach To Turnkey Real Estate Investing...

Cashflow Properties With Owner Financing”

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Partner with Local Indianapolis Investor and Property Management Specialists who have over 35 Years Experience in the market.

Purchase “Seasoned Properties” with Solid Rental His-tories & Maintenance Programs

Avoid the Hassles of Bank Financing

Use Your Self-Directed IRA to Fund the Down Payment with our Non-Recourse Owner Financing.

InvestIndy.com Invest Indy specializes in creating turnkey investing opportuni-ties for Local and National Investors who are looking to take a more passive role in the process. Our extensive experience allows our clients to leverage our knowledge in property acquisition, rehabilitation, tenanting, and property management.

Dorfman Property Management For over 35 years, Dorfman Property Management has been Indianapolis's Premier Property Man-agement Company. Having worked with thousands of proper-ties and property owners over the years, we fully understand the subtle nuances of the Indy market, and work diligently to get your properties leased FAST and with Quality Tenants. Contact us today at 317-507-4323

CURRENTLY AVAILABLE

Property Historical Cashflow Details (7yr Avg.): In Portfolio Since 2003

Annual Gross Income: $7,675 Annual Taxes: $825 Annual Insurance: $500 Annual Vacancy / Maintenance: $1078 Annual Management Fee: $748 Average Annual Net Income: $4,524

OWNER FINANCING OPTION

Investor Purchase Price: $40,000 Required Down Payment (30%): $12,000 Projected Closing Costs $800Cash Required: $12,800

Owner Financing: $28,000 Terms: 30yr Fixed @ 8% (10yr balloon) Monthly P&I Payment: $205 Annual P&I Payment $2460Projected Adjusted Net Income: $2,064 Projected Cash on Cash Return: 16.08%*

*Projected Cash on Cash Return

$12,800 Gets You A Free & Clear $40,000 Rental Property in 8.58 years

Under Retirement Accelerator Program… Generating approx. $4,500

Net Income For Life

www.InvestIndy.com (for more available properties)

(317) 507-4323

ASK ABOUT OUR $2000

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One of the most det-r i m e n t a l mis takes

an investor can make is not having adequate l e g a l p r o t e c t i o n . Mathew Mullhofer, an

investor and attorney located in Orange County, Calif., says it’s important for investors to be pro-active for maximum pro-tection. Asset protection is very much like health insurance, one needs to have it in place before disaster strikes. “You can’t set a trust or LLC if you already have a judgment against you,” he warns. “State and federal law prohibits any individual from transferring their assets after a lawsuit has been filed against them. The prudent busi-ness person must plan prior to any potential lawsuit in order to legally protect the assets that they have worked so very hard to acquire.”

Another common mistake that investors make, according to Mr. Mullhofer is that “they enter into business deals with-out written documents, which gives entrepreneurs no legal protection or recourse should their partners not agree or keep their word.”

Mr. Mullhofer has been prac-ticing law in California for 13 years. He has extensive experi-ence in the area of estate plan-ning and asset protection, which includes the formation of trust, wills, family limited partner-ships, limited liability compa-

nies, and domestic corporations. Ad-ditionally, he has formed numerous offshore corpo-rations, offshore trust, and private offshore bank ac-

counts.Mr. Mullhofer is also experi-

enced in representing taxpayers in collection efforts by the Inter-nal Revenue Service, Franchise Tax Board, and State Board of Equalization. When asked about the different types of le-gal protection that can be set up, Mr. Mullhofer says that the Family Limited Partnership has been around for many years in California, however, most indi-viduals may recognize the Lim-ited Liability Company (LLC) more often. The LLC was only recently enacted by Governor Pete Wilson, however the LLC continues to be a valuable asset protection tool. A Land Trust is also used in conjunction with an LLC and an LP for added protection.

Ideally, according to Mr. Mullhofer, each property should be in a separate legal entity for maximum protection. An investor’s protection plan will depend on the number of properties they have and other individual needs.

For more information on how investors can maximize their legal protection and tax and estate planning, please con-tact Mr. Mullhofer’s law office today at: (877) 246-2770

How to Protect Your Net Worth

Mathew Mullhofer, an investor and California attorney, says it’s important to be pro-active

to maximize your legal protection.

market and advertise your busi-ness. I highly suggest that you customize your Twitter page with your brand, create a Face-book Fan Page for your busi-ness, develop your own Linke-dIn Group, and also customize your own YouTube Channel.

After setting up these social media pages, it’s important to remain active on these accounts by posting, uploading, inviting, connecting, commenting, mes-saging, announcing, liking, or whatever is necessary to keep your marketing efforts ongoing using these channels. Best of all, these social media market-ing techniques are FREE but time consuming. If you do not have time to do it yourself, I suggest you hire a person to do it for you and keep it go-ing. Some advance techniques include developing mobile applications your customers can download to their mobile devices. For instance, we are creating a deal analyzer so that our users can quickly analyze a deal to figure out cash flow and return on investment.

Public Relations. Your busi-ness communication and image to the public can be delivered through a publicist and/or writ-ten through a well composed press release and/or press kit. This press release can be pub-lished and picked up by major journalists who will write about your company and even contact you for a formal interview. To be written up in articles is a great way to maximize your marketing efforts. Another way is to write your own articles to be submitted in feature print

like magazines, newspapers, and blogs. Become a special-ist in your industry so writers will reach out to you for your opinions and comments which will become published editori-als. Make sure to keep all of your featured press materials framed in your office, displayed on your website, and added to your press kit.

Networking . Ne twork-ing is a form of marketing. Attend events and meetings, join groups and organizations, become affiliates to refer cus-tomers to other businesses, get more training and education and network with fellow stu-dents, mentors, trainers, and coaches, create relationships, offer reward programs for re-ferrals and market everywhere you go. Make sure to give your business cards out. More importantly, be sure to collect others’ contact information and confirm their phone number and email address so you can follow up with them. Follow up is the key to developing the relationship. I have given out thousands of business cards and rarely do I receive a follow up call or email so set yourself apart by doing what others care not to do.

I hope that you will find some of these marketing strat-egies useful in your real estate business. Make sure to track your marketing efforts to know which strategies are producing the best results. And remem-ber: More Marketing = More Money!

To learn from Crystal Han, be sure to visit her website at: www.360investments.net

More Marketing, pg. 46

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making money for her private money, hard money and buy-and-hold investors, Kindred enjoys the social community aspect of her job. “We get ugly houses off the streets and provide moderate income people with really nice housing,” she admits. “Plus, we teach tenants about the benefits of homeownership and also help them buy the properties they rent from us.”

Terica Kindred, pg. 40How to Invest in This EconomyTake Control of your old 401K and IRAs and open up your options to diversify your retirement accounts so the unpredictable stock market doesn’t kill your re-tirement. By taking control in a self directed IRA, you open up your options to more alternative assets.

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was learning from a book & DVD, and I had another kickboxer in the ring with a trainer, who do you think is going to be the dominant fighter? And that’s where we say: You know what, if you really want to be an investor, then you need to be trained Sensei style.”

At Black Belt Investors, you will learn Sensei’s wholesale system of “Find It, Bind It and Assign It™.” In the Find It stage you will learn how to guerilla market to find cash buyers, distressed sellers and properties and draft a “power team” that will help you move to the next level. Once you have a motivated seller you will then move to the next stage of Bind It, and here you will learn how to research making of-fer the sellers can’t refuse, negotiations and how to use Sensei’s simple 1-page contract. Now that the property is secured by a contract, you will move to the third stage of Assign It. Here you’ll learn how to inexpensively market the properties so you can flip it within hours and get paid!

Sitting on your hands and hoping that you will become a successful investor is not a course of action. Get off your hands and take action now! You owe it to your-self to become successful. I suggest to get the training from an experienced investor that can get you in the right mindset, armed with the weapons to take down houses and build your real estate cash machine. “On-site mentoring” is a core reason for the success of Sensei’s students. “I can teach

you at my Wholesale Training Camp,” said Sensei, “but you would be more effective if you took that training camp to build a solid foundation, and then deploy out in the field along side of me to put some heat in the streets. Being action oriented, armed with the effective tactics, knocking down obstacles, and giving it your all will open the doors of opportunity.

And don’t worry... if you’re too tired to go through the door, then Sensei will push you through.For more information, please visit:www.BlackBeltInvestors.com

The Art of a Flip pg. 20


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When I think back to my deci-sion to become a serious real estate investor, I almost always return to the day that I first had the opportunity to read Robert Kiyosaki’s book “Rich Dad, Poor Dad.” If you have not read this book, I would highly recommend you read it and read it again. It literally opened my eyes and explained how money works — giving me the true facts about money that the rich teach their children and that the middle-class do not. While the book opened my eyes to ev-erything I was doing wrong with my finances, it wasn’t until 5 years later when I started playing Robert Kiyosaki’s Cashflow 101 board game that I ac-tually began to take action and implement the ideas and apply the concepts laid out in the “Rich Dad, Poor Dad” book. I like to say that the “Rich Dad” book puts the knowledge to create financial free-dom in your head, but playing the Cashflow game actually puts the knowledge to create financial freedom in your heart.

You may ask “What is Cashflow 101 board game?” Well, the best way to de-scribe it is Monopoly on steroids. Like Monopoly it is a board game that involves investing, but unlike Monopoly it serves as a powerful tool for learning basic finan-cial strategies and accounting principles. Simply stated, Cashflow 101 is the first in a series of games created by Mr. Kiyosaki to reinforce the information and financial principles that he teaches in his books.

In the board game, you play a rat that travels around two unique tracks. At the be-ginning of the game you start in the small inner circle track called the “Rat Race.” You goal is to escape the “Rat Race” and make it to the larger outer track called the “Fast Track.” Starting in the “Rat Race,” you quickly discover that simply earning a “salary” will not allow you to create fi-nancial freedom and escape to the “Fast

Track.” Only by acquiring and investing in assets do you slowly discover what it takes to generate the passive income necessary to make it into the “Fast Track.”

At the heart of the game is mak-ing players learn how to actively manage their money by filling out and creating their own finan-cial statement. Players choose

from a variety of starting careers (Truck Driver, Mechanic, Lawyer, Airline Pilot, etc.) and fill out their financial statements appropriately. As they earn money, pay bills and invest in different deals they du-tifully log each change to their financial

statements and begin to understand and control how money flows through

their lives. Literally thousands of

Cashflow game clubs exist around the world. These are groups of “like-minded” in-dividuals who have typically

read Mr. Kiyosaki’s book and get together regularly to play

his board games to develop their skills for investing and money man-

agement. Besides creating a fun environ-ment to learn life changing financial skills, these clubs offer opportunities to create lasting friendships, learn about various investment opportunities, and build a net-work of contacts who can support you in securing your financial future.

It was because of the amazing people that I met at those first Cashflow game club events that I decided to start my own clubs in Burbank and Pasadena, Calif., over five years ago. So go ahead and check out a local Cashflow club in your area. You can go to www.meetup.com where many of the clubs (including mine) are listed and you can join free. If you are like me, the board game will transform your “money mind-set,” whether you are a newcomer looking to get out of the “Rate Race,” or seasoned investor seeking a faster path to financial freedom. To contact Doug Carver, please email him directly at: [email protected]

Robert Kiyosaki’s CA$HFLOW Board Games

by Douglas Carver

buildings.” Barker adds, “We have a couple of personal teams who handle every aspect of the investment busi-ness.” His team includes bird dogs, rehabbers, property managers, brokers and everything in be-tween.

AMERICANS: FLIP TO AUSTRALIAN INVESTORS!

One unique program that REO Bailout offers that no other company can match is the is the “Flip to Australians” exit strat-egy. This means that in addition to secur-ing a deeply discounted property, rehab team, and property manager, REO Bail-out will also will procure an Australian investor to buy the inventory purchased by their clients.

Barker explains: “This particular pro-gram has worked extremely well this year, so far we have completed over 200 sales to our Australian friends. In a nut shell we buy the property, rehab, put in qualified renters and sell the completed product to our friends abroad. We have some of our hardest workers on the ground in Aus-tralia and they have done a fabulous job selling a piece of the American Dream to our counterparts. This is a win win for all involved.”

REO Bailout’s “Flip to Australians” program has proven to be extremely popular, according to Barker. “We are on board to begin selling 50 or more proper-ties a month to Australian investors,” he explains, adding “And they have just put a team on the ground in Singapore.”

Undoubtedly, in today’s market, cash is king, but for those who may fall a bit short, REO Bailout has financing options available with their preferred banking, private and hard money lenders. They, in turn, can provide investors with 70% to 80% leverage opportunities.

While Barker is not quitting his day job anytime soon (law enforcement is his personal passion), his annual salary is similar to his monthly rental cash flow. “This market right now is a no brainer,” he confides. “I just purchased 47 condos, all fully rented with no rehab needed. I am also looking at an additional 40, just these two acquisitions alone will gross $55,000 a month. Not too shabby for a full-time SWAT officer!”

AZ Property Tour, pg. 28


Mike Barker

Doug Carver


This is the best window of opportunity of our lifetime to procure

real estate for long-term hold. Unfortunately, the pendulum at capital hill and Wall Street overreacted to the short-term speculative investors at the height of the bubble and has swung too far back to conser-vative terms for investor loans, thus impeding the ability of investors to get homes off the market and occupied.

This is not just a problem for investors who want to further build their retirement portfolios and reduce their personal depen-dence on the country’s overburdened social programs. It is also a serious detriment to this country’s economic need to acceler-ate the process of rectifying our debt crisis from underwater real estate.

Currently 25% of the nation’s and 35% of California’s home loans are upside down in spite of over three years of a high rate of foreclosure sales. And yet the rate of fore-closure sales is less that a quarter of the rate that they should be relative to the rate of delinquencies. This has resulted in a “shad-ow housing inventory” of 42 months at the current absorption rates. So far. As a nation it appears that if something doesn’t change it will take 4-7 years to get to a more normal

and sustainable home sales environment and continuum.

And as if this situa-tion were not enough, to further amplify the problem, only 33% of sellers and those losing their homes are willing or able to repurchase. That’s right, 67% of former homeown-ers have moved from

buying to renting.We have an escalating p r o b l e m of unsold homes sit-ting on the market. If owner oc-c u p a n t s cannot ab-sorb two-thirds of the hous-ing inventory, who will? Clearly the only ones who can do that are investors. Not only do they absorb foreclosure inventory and provide housing, but by using their capital for improvements they also remove blight from neighborhoods, thereby improving

property values and local tax rev-enue. If more in-vestor financing is made available, the absorption rate will accelerate and with it the end of our real estate cri-sis becomes more tangible. Histori-cally, the real es-tate economy has always played a leading roll in our national recovery from recessions.

What do inves-

tors need to move forward? I believe the following three-year changes in loan poli-cies:•Increase the amount of available loans to qualified investors to an unlimited number for three years (as it was in the past)•Make the 203K loan program more avail-able to investors (loans that include funds for improvements)•Allow “simple assumptions” of any Fan-nie, Freddie, or FHA loans•Allow equal access to all government-owned inventory for investor and owner-

occupants alike•Accept more reasonable cash reserves re-quirements

What do lenders have to lose by these changes? Very little. The long term inves-tor delinquency rate is no higher than that of owner occupants and it is actually lower for FHA loans. Current and traditional in-vestors are not speculators; they add value and experience to the process of turning empty homes into family homes. Finally, many of the changes that investors seek are roll-backs to the policies in place before loosening of lending policies fueled pur-chases by under-qualified buyers. Investors don’t just want, they know these changes are essential to the recovery of the real es-tate market in the U.S.

To promote these ideas with the policy makers at Fannie Mae and HUD, I re-cently joined Howard Blum, President of The Financial News and Information Ser-vice, Bruce Norris, President of The Norris Group, and Sean O’Toole, CEO of Fore-

Real Recovery Starts with Investor Lending Changes

by Tom Wilson

From left to right: Sean O’Toole, Tom Wilson, Dr. Doug Duncan, Bruce Norris, Howard Blum at Fannie Mae meeting in Washington DC May 25, 2011

Source: Corelogic, ForeclosureRadar.com

Tom Wilson

closure Radar, in Washington D.C. to discuss the potential of eas-ing the require-ments for inves-tor loans. Our audience of 15 including, 6 vice presidents, dem-onstrated that Fannie Mae and HUD are serious about wanting to improve the situation and are willing to con-sider new ideas. They felt that since multiple rental properties can be justified and sup-ported by income rather than just borrower financials, a hybrid product could be con-sidered that is a bridge between traditional residential and multifamily loans. The main hurdle yet to overcome is framing a policy that would be politically acceptable to both congress and the public. For more information, please contact Tom Wilson at 408-867-1867 [email protected]

Tom Wilson has executed over $100M and 1,600 units of real estate investment deals over 35 years. He first invested as a part-time activity, and then after thirty years managing some of Silicon Valley’s pioneering technology companies, Mr. Wilson put his business and management experience toward full-time real estate investing. Wilson Investment Properties offers high quality, high-cash flow, low-risk and leased investment properties.

dalism, decay and overhead costs that you have to pay if it sits vacant.5. Get in the Game. There is nothing more expensive than cost of lost opportunity. We all know that inflation is here to stay for the next few years. If our gas and grocer-ies cost more today, won’t our housing cost more in a few years? The best time to buy properties has never been when the mar-ket is going up — it’s actually right now. Where else, outside of a game of Monopo-ly, have you been able to purchase multiple properties for as little as $25,000?

Lori Greymont is CEO of Summit Assets Group. She offers educational presenta-tions around the U.S., trains and mentors people new to purchasing distressed as-sets and coaches on creative financing techniques. Her company sells single fix and flip properties, bulk lists, and tenanted cash-flowing properties.

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cent guideline changes, no longer will an owner have to wait six months to get their money back when they purchase a property with their own funds.

“Fannie Mae is realizing that investors can absorb the excess inventory,” Bighaus says.

Gosser and Bighuas joined forces a few years ago. They say they compliment each other because of their diverse backgrounds. Gosser, who had more experience with first time home buyers, blended well with Big-huas and his expertise with investors.

“Our services are very well rounded, “ Bighuas states. “We cover virtually every aspect of lending.

— by Linda Pliagas

For more information about financing an owner-occupied or investment property, call Team Gosser Bighuas call 425.412.5239

vantages that “Big Banks” can’t compete with. For one thing, many large financial institutions won’t lend to out of state inves-tors or they have strict guidelines, such as an investor has to live 100 miles from the

subject property.The team is also excited about changing

legislature favoring investors. For example, Fannie Mae recently released new guide-lines on cash out refinances for investment properties. Gosser says these new rules will open the doors for a significant number of investors to re-coup their money when they purchase a property and for those who own five or more properties. Thanks to the re-

A financial fallacy is permeating the industry, according to Jason Gosser and Steve Bighaus, part-ners of Team Gosser Bighuas at

Guild Mortgage. “From my perspective, the current lending situation is fantastic,” Gos-ser says.

“There is a myth that lending is difficult, but that is not the case,” he says, adding, “Lending is not difficult if you can verify assets and income.”

Investors are being rewarded for their strong credit and financial standing with

low interest rates in the lower to mid five percent range. Because it’s a buyer’s mar-ket, investor activity is soaring, and Team Gosser Bighuas has never been busier. The Team is able to fund transactions in ten states. Currently, the largest level of activ-ity for them is the Southeastern and West Coast markets.

Bighaus says that working with Gosser Bighuas at Guild Mortgage has many ad-

WeÊspecializeÊin*ÊÊÊÊÊÊÊÊÊÊÊInvestmentÊPropertiesÊÊÊÊÊÊÊÊÊÊÊUpÊtoÊ10ÊFinancedÊPropertiesÊAllowedÊÊÊÊÊÊÊÊÊÊÊCreditÊScores,Ê620ÊorÊhigherÊÊÊÊÊÊÊÊÊÊÊDirectÊFannieÊMaeÊServicer/Seller

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WithÊGreatÊServiceÊ&ÊFASTÊAPPROVALS;ÊÊWeÕllÊtakeÊcareÊofÊyou!! *The Information contained herein shall not be construed as a guarantee of loan approval. All loan approvals are subject to Underwriter approval. Equal Housing Lender. Company NMLS# 3274. Branch NMLS# 37801. WA Branch CL-37801. TN Branch 4470-4315.

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Hello, I am Sam Sadat, founder and President of Sam’s Real Es-tate Club of Los Angeles. I highly encourage you to participate in your financial freedom by attending our monthly meetings. There’s never been a better time to buy real estate than now. Market change forces have “conspired” to create the greatest wealth building opportunity since the Great Depression. It is time to invest in your future by gaining valuable knowledge and the skill sets required to achieve financial independent. I have virtu-ally removed all “excuses” by showing you a plan on how you can

make money now even if you don’t have any! Our monthly meetings are typically on the fourth Wednesday of each month at the beautiful Beverly Hills Club in West LA. You may always contact me directly for any assistance with your real estate challenges. Your success in real estate is guaranteed with a good coach. Let me be yours. [email protected]

Sam’s Real Estate Club of Los AngelesEDUCATION • CONNECTION • ACTION

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Since May 2003, we’ve helped thousands of real estate investors learn, network and prosper. Also, known as LAREIC, Sam’s Real Estate Club, is dedicated to providing you with the hottest information on market conditions and how you can take advantage of this Great Recession. Join us to hear great national speakers and ever popular “Power Panels,” panel of active local investors willing to help you succeed. And what’s more is the Sam’s Insight, a monthly segment where Sam’s message will invoke action and uplifts your spirit. Once you see us, you’ll know there’s no other club like Sam’s Club in LA! Thanks to the recent guideline changes, no longer will

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Realty411 www.realty411guide.com | Vol. 3 • No. 3 • 2011 A Resource Guide for Investors


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the right kinds of properties for cash flow.What Walter created was a job that re-

quired him to get up every morning and “go to work”. After months of effort and stress — finding a bargain home, closing on it, fixing it up, and reselling it — he was reju-venated by the thrill of making a big profit. But to earn his next “paycheck”, he’d have to start all over again. It wasn’t because he

wanted to. It’s because he had to. And it always took 4 to 6 months to complete the cycle and make another profit. I decided I needed to follow a different system by in-vesting and holding apartment buildings.

Naturally, I am a believer in systems as it was a system that helped me escape a dead end career as a landscaper to do what I am doing today. For me, a system represented a step-by-step approach to doing something I hadn’t done before. I had no road map and didn’t want to learn from the school of hard

knocks alone. The systematic approach to investing in apartment buildings appealed to me and I know it has some appeal to you as well.

So, what is the system for investing in apartment buildings? It is much the same as for any real estate venture and it starts with recognizing the value in the commod-ity. If you don’t understand why real estate

is valuable, you can’t possibly differentiate a good deal from a bad one.

The system for real estate also involves the steps outlined:•Building a team•Finding properties•Locating funding sources•Making offers•Securing funding•Negotiating deals•Streamlining the closing process

Dave Lindahl, pg. 22

•Property improvement•Property management•Asset protection and wealth develop-ment

None of these things are any less impor-tant than the others and they are listed in a basic sequence of how and when you should pursue them. I can’t possibly discuss them

all in detail within a sin-gle article but I do want you to see that there is a logical progression here. Each step in the system has its own steps to learn, ways to validate learn-ing, and also specific ac-tion steps to take. Back to how my system had me do things differently than Walter. Almost ev-erybody avoids…no, al-most everybody is afraid of apartments. They are afraid of Property Man-agement (a step in the system above). I was too at first, and that is why I turned common Prop-erty Management beliefs on their head. I knew I could use this general fear to my advantage.

With the help of men-tors in my life I was able

to create the best apartment buying system that alleviated the need for me to be a land-lord and didn’t have all the tax drawbacks of Walter’s system. It provided perpetual income for me and had my tenants pay my mortgage. Receive Dave Lindahl’s free report, call 800-559-8590 or visit: www.DavesOffer.com/Realty411To read more about Dave and hear a stu-dents success story visit: www.Rementor.com/Realty411

Naturally, I am a believer in systems as it was a system that helped me escape a dead end career

as a landscaper to do what I am doing today.Realty411Guide.com PAGE 62 • 2011 reWEALTHmag.com

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Buy Memphis Foreclosures - A Division of GM Realty, Inc. 6262 Poplar Avenue, Memphis, TN 38119

A division of American Foreclosure

Acquisition Services

Memphis’ Finest Foreclosure Experts

Naturally, I am a believer in systems as it was a system that helped me escape a dead end career

as a landscaper to do what I am doing today.