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www.realty411guide.com | Vol. 4 • No. 2 • 2012 A Resource Guide for Investors Print • Online • Network TERICA KINDRED Founder & CEO of From Local to Global Learn to Invest Outside Your Backyard to Accelerate Cashflow

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Reaching Investors, Entrepreneurs and Real Estate Providers around the Globe, Realty411 & Real Estate Wealth magazine is a free print and online resource guide developed to assist investors in the acquisition, management and growth of their real estate portfolios.The magazine, which features two different covers, each focusing on alternate marketing strategies, is published by investors who own properties around the nation. The publishers have been landlords since 1993. Our company also owns CashFlowCows.com and GreenBlasts.com and operate numerous blogs as well as many online social media groups. Google us for more information.

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Page 1: Realty411 part2

411 www.realty411guide.com | Vol. 4 • No. 2 • 2012 A Resource Guide for Investors

Print • Online • Network

TERICA KINDREDFounder & CEO of

From Local to Global Learn to Invest Outside Your

Backyard to Accelerate Cashflow

Page 2: Realty411 part2

Secret #7 - How do I Make Money?There are several exit strategies possible with a note. 1. Settlement – borrower to settle at large discount 2. Re-sale Re-sell note to a third party investor 3. Modification – Creating long term ROI 4. Deed in Lieu of – Taking ownership of the property 5. Foreclosures – Creating leverage 6. Sell the property – Sell, refinance or short sale

If you are looking for the best way to invest with returns of over 12% then this is for you. Notes can mature at a much higher rate.

Asset Ventures doesn’t promise you ex-traordinary returns each and every time; however, there have been returns at over 100% or more in some cases.

If you want to learn more or invest in notes, please contact us. Feel free to visit our website at www.assetventuresllc.com. Or, if you still prefer the personal touch, please feel free to contact our office for a free consultation on all our services at 855-798-1411.

other company-managed property. Some tenants become homeowners in a lease-to-own scenario.

“It’s traditional in the areas that we do rental properties that it’s very rare for peo-ple to move more than a few blocks away

from where they grew up,” Dannenfeldt said. “So we feed into locations that have that kind of cultural bias where then we can keep people with us for the long-term and also attract their family members into our system as well.” For more information, please visit online: PropertyPartners1.com

Retire in Style, Here’s How pg. 17

National REIA elects Tim Norris to 2012 Board of Directors

Congratulations to Tim Norris, an investor and president of the National Real Estate Insurance Group and Affin-

ity Group Management, for his recent appointment to the Na-tional REIA’s Board of Directors. Norris continues his com-

mitment of service to the National REIA, he is a former board member of the Cincinnati REIA. The National REIA (Real Estate Investor’s Asso-ciation) is a 501(c) 6 trade association made up of investment clubs throughout the United States. The interests of ap-proximately 40,000 members are represented by the National REIA.

One of the changes that Norris is excited about is the implementation of local chapters within the organization, which he feels will help drive memberships into the organization. Realty411/reWealth magazine is a member of the Santa Barbara REIA, a club affiliate of the National REIA.

Want to Make a Fortune in Notes? We have the Blueprint for Success

www.assetventuresllc.com (855) 798-1411

entures LLC

sset

Page 3: Realty411 part2

True Wealth is Created by Holding Property Long Term

To learn more about us and view our inventory,visit BuyHoldRent.com or call 216-240-7363.

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Meet Sean Whalen, the CEO of BH&R (Buy, Hold & Rent) Properties

in Cleveland, Ohio. He started his company three years ago, ostensibly to take advantage of the market downturn, but he’s no rookie. Whalen has been involved in real estate for 20 years.

He grew up in a depressed area of Cleveland. His family eventually moved, but his dad maintained the management of the property they owned (and lived in) and eventually deeded the property to him. Whalen decided to maintain his residence there and work on the property. It was a fortuitous decision as the neighborhood began to transition with the influx of artists and new restaurants. Whalen points to the fact that the neighborhood had distinct boundaries that set it apart from other

communities, and this greatly aided its transition. The area is now one of the most expensive in Cleveland and Whalen’s career was born.

He says the market in Cleveland has definitely leveled off, as there was no bubble to burst in the area, as happened

in so many other markets (including Los Angeles, San Francisco, and New York). All of his investors are from outside the area, most from outside the country (e.g. Canada, China, Australia). Rather than selling to a potential residential customer, Whalen specializes in selling to investors (typically they buy more than one prop-erty, he says).

He gets his customers the old fashioned way: by word of mouth from having previously done a good job for a customer. He has a lot of relationships with affiliates

in the business and through traditional advertising. He firmly believes in the necessity of thinking outside the box due to the economy becoming increasingly smaller and the market becoming global. The properties of BH&R are turn-key; the investors buy, BH&R re-habs the property from top to bottom, and then, they adver-tise for tenants. From there, the in-house property management component of his firm takes over (continuing to provide for the property as if it has never been sold). Essentially it’s a worry-free, hands-free operation for the investor.

In years past, BH&R had done substan-tial business with the government through its Section 8 Housing Program. That represents a much smaller segment of their

Buy, Hold & Rent in Cleveland

Realty411Guide.com PAGE 26 • 2012 reWEALTHmag.com

Continued on pg. 42

by Isaac Newkirk III

Page 4: Realty411 part2

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Buy, Hold & Rent in Cleveland there is a strong element of timing involved when locating motivated sellers. The most ef-fective way of getting this as-pect of timing to work for you is through consistent marketing. Direct mail, classified advertis-ing (both online and off) and websites are the tools of the trade. Use them all. Regardless of the “silver bullet” that was just promoted by the last guru that came to town, it’s still a numbers game. The more mar-keting mediums working, the better.Step 4 - Answer the phone. Seems simple enough, but it’s this step that’s most frequent-ly missed. There are many schools of thought on how an investor should receive incom-ing calls, but in my book there’s only one way. Answer the phone when they call you. There’s no better time to talk with a moti-vated seller than when they call you. Because they called at a time when it was convenient for

them, you’ve got their undivid-ed attention and they are ready for your solution to their need.

Investor Tip: Pick up a “cheapy” dedicated cell phone exclusively for the purpose or your motivated seller market-ing. Place this phone’s num-ber in all of your ads and use it nowhere else. When it rings, you’ll know... game on!

In summary, a real deal de-fined is a property that meets your criteria and a seller that will meet your terms. By knowing, and sticking to, your property criteria and minimum terms, finding deals isn’t so dif-ficult. Take it from someone that has transformed their investing business (0 to 60+ deals) in the last eighteen months adhering to this wisdom.

It’s amazing once you know exactly what you’re looking for and where to find it how much more often it appears. To your success!

Matt Theriault is an author, entrepreneur and host of the

fastest growing real estate in-vesting podcast on iTunes. Visit www.EpicProfessionals.com for more information and to re-trieve his free real estate invest-ing course “How to Do Deals — No Money Required.”

Terica teaches how to Invest Out of State, pg. 15Find Real Deals, pg. 18

What I’ve learned in real estate is that the only way you learn is when you lose. And so I would say, ride the backs of other people so that you can shorten your losses.

Question: For as long as I can remember, the key to personal wealth has always been real estate. Is that still the case?Terica: I think so. I think it lies in the diversification. When you compare stocks to real estate, the returns are slower, but right now, you’re able to get double digit returns secured, and the tax shelter aspect [of real es-tate], plus you have leverage, so you don’t have to use all

your money, but you have the benefits of the entire asset. It’s a gold mine.

Question: What are your goals for 2012?Terica: My personal goal for this year is to remain healthy. Professionally, I want to con-tinue making an impact in the lives of the middle class inves-tor by helping them build real estate portfolios that get them out of the rat race. I want to convert all of the ten-ants we have into home owners so they can build a legacy for their families. I would like to continue to expand into more markets, thus creating new jobs, revitalizing more commu-nities and doing my part to help America rebound from this de-pression.

To reach Terica Kindred, prin-cipal of Out Estate Investments, please call: 866-488-1820 or email [email protected]

Page 5: Realty411 part2

Realty411Guide.com PAGE 28 • 2012 reWEALTHmag.com

I don’t recommend being a real estate investor…un-less you have a well-de-fined strategy, quantitative

goals and are dedicated to go by the numbers and not by unsup-ported advice or emotions.

My engineering training and 30 years of experience manag-ing high-tech profit centers in Silicon Valley taught me how to analyze for the best return on investment in any mar-ket.

Today, the principles of analysis remain the same. Anyone can do it, however, one needs to be very disciplined and educated about the submarkets and products, or ride the coattails of someone who is.

The primary parameters for selecting the best investment markets are:•Rent to purchase price ratio•Population growth and inward migration•Employment growth and business climate•Housing affordability•Location•Cost of living•Rental market•Current and projected market conditions

Now that speculative investing for fast profit has gone the way of the last super-model, the wise investor is focused on cash flowing assets and safe harbors.

Are there markets that have weathered the down-turn well, are superior in many of the parameters above, and have had rela-tively calmer waters dur-ing these past few tumultu-ous years? Indeed, my experience in more than 1,800 unit transactions, over 35 years

has revealed that Dallas / Fort Worth is one of the best real estate investment markets in the United States; that is why I chose it for most of my personal portfolio long term holdings.The strengths of Dallas / Ft. Worth are:•Business and financial capital of the South. •The highest rent per invested dollar for a major economic center in the United States, and therefore, the highest cash flow•One of the lowest risk and safest harbors in the United States for real estate•Lowest housing price decline from peak; only US single-digit depreciation metro•Fourth largest and one of the fastest grow-ing MSAs (Metropolitan Statistical Area) in the United States. Projected to double population to 12 million by 2030•Broad-based economy that has had double the employment rate growth of the United States during the past decade•No. 1 ranked business climate in the Unit-

ed States•No state in-come tax• L e a d i n g MSA for cor-porate head-quarter relo-cations and expansions•Second lead-ing MSA in US for For-tune 500 cor-porate rev-enue•Most afford-

able housing of top 20 cities ($116,000 median Q3 2011)•Central location in the United States at-tracts companies desiring time zone and distribution competitive advantages•DFW airport is the third busiest in the world•One of lowest cost of living major MSAs, yet above average household income•Highest millionaire growth rate in the United States•Strong rental market (95% occupancy Q4 2011 for single family homes)•Very landlord friendly

Yes, the national economy crisis has affected even DFW, but not significantly compared to other MSAs. Texas is the sec-ond most populous state, so there are in-deed many home foreclosures, especially since there is such low housing costs and consequently a high percentage of govern-ment backed loans, but in spite of this, the Texas delinquency and foreclosure rate is relatively low compared to other states. I believe that these factors are another strong indicator of whether a metro has hit bottom yet, and that many cities and states have farther to go, so selecting the lowest risk metro is as important as seeking high current cash flow.

During the last two decades the appre-ciation average was about 5% per year. With a five to one leverage with 80% loans investors got a 25% return on their down payments, in addition to the high cash flow. Historically, the last economies to slow down, are the first to go back up.

I don’t know when DFW will start ap-preciating significantly again, but I believe it will be before many other areas, and our window of opportunity to invest optimally in any leading area may be shorter than we think.

In this economy, I prefer to invest in homes over commercial and multifamily products because homes have more liquid-ity, are generally lower risk, appreciate faster, and one can build a “mutual fund” by buying in various neighborhoods rather than putting a lot of eggs in one address.

Why Dallas / Ft. Worth is One of the Best Metros in the US

by Tom Wilson

Tom Wilson

Las Vegas Worst Dallas Best

Page 6: Realty411 part2

Realty411Guide.com PAGE 29 • 2012 reWEALTHmag.com

Even in a good region, one must be very careful though in selecting the right product, neighborhood and professional service and management team. Make sure you rely on resourc-es that have a lot of investment experience in that region.

If I’ve learned anything in investing, it is that variations in performance from the median

can vary tremendously in any general geographical area, and only experienced profession-als can help you minimize that risk.

I believe that the wise will not wait and see, but act to grasp the best opportunities of our lifetime before they are gone.

Dallas / Ft. Worth Education Field Trip, May 4-6, 2012

Multiple Speakers including Dallas Chamber, Property Managers, Product Suppliers, Lenders & 3rd Party Investment Experts

your questions on site? That is certainly a different experi-ence indeed!

This concise, action and value-packed weekend is sponsored by The Real Es-tate Guys and it will sell out quickly. For information and a special discount offer, visit www.tomwilsonproperties.com or call 408.867.1867.

Parachuting surely is a dif-ferent experience than

just reading about it. Dallas/Ft. Worth is a much sought-after investment city, one that you can certainly read up about. However, how many times can you see it and have multiple experts teach-ing you, touring with you, and available to answer all of

INVEST WITH CONFIDENCEI M M E D I A T E C A S H F L O W

Discover the lowest-risk, highest-quality residential investment properties in the country. Using sophisticated methodology, the best investment properties are

carefully selected by an experienced investor and rehabbed beautifully to secure the best tenants. With competent property management, and instant cash flow, your investment pays worry-free dividends from day one.

PROFILE OF YOUR FUTURE PORTFOLIO

“Contact me for a free cash flow analysis.”

Mention REI Voice Magazine and receive one-year of freeproperty management with your first purchase.

TOM WILSON, [email protected] TomWilsonProperties.com

Price: $110,000, fully renovated, built 2005Currently Rented for $1,195

Price $139,000Rent $1,395

Year Built 20014 Bed 2.5 Baths

Mention Realty411 or reWEALTH and receive a discount on the May 4-6 DFW Field Trip. Don’t Miss It!

INVEST WITH CONFIDENCEI M M E D I A T E C A S H F L O W

Discover the lowest-risk, highest-quality residential investment properties in the country. Using sophisticated methodology, the best investment properties are

carefully selected by an experienced investor and rehabbed beautifully to secure the best tenants. With competent property management, and instant cash flow, your investment pays worry-free dividends from day one.

PROFILE OF YOUR FUTURE PORTFOLIO

“Contact me for a free cash flow analysis.”

Mention REI Voice Magazine and receive one-year of freeproperty management with your first purchase.

TOM WILSON, [email protected] TomWilsonProperties.com

Price: $110,000, fully renovated, built 2005Currently Rented for $1,195

Page 7: Realty411 part2

Realty411Guide.com PAGE 30 • 2012 reWEALTHmag.com

by Randy Hughes

I have been using Land Trusts for over 30 years, but every now and then someone will challenge me as to the purpose and “honesty” in us-

ing a Land Trust to hold title to real estate investments. Let’s clear the air.

Recently I was talking to a real estate in-vestment club owner about speaking to his club regarding land trusts. He said, “We do not believe in using Land Trusts because they are dishonest.”

He then went on to explain how some-one had come to his club and spoke about Land Trust and that led him to believe that

the use of a Land Trust was for deception and taking advantage of people.

I told him that I was sorry that he had been misinformed about Land Trusts and that he should reconsider their use and benefits. I went on to review with the club owner why it is important to NOT have your name in the public records as owner of real property:

1. A group of investors may be purchasing several properties for a special purpose and it may be that the desired result can be best accomplished if the objective is not made public.2. Co-owners might desire that the interest of each beneficiary must be kept private.3. An individual owner might not want to be hassled with inquiries regarding the property.4. A real estate investor might not want his competitors to copy his acquisition tech-niques.5. Real estate investors do not want their tenants to know they are the “owner” of the

property (helps with day-to-day management and lease renewal negotiations).6. Co-owners want to know that a lien or judgment or divorce of one owner will not affect the title to the property.7. Out of state owners can avoid probate and other legal issues upon death — smooth transition of succession.8. A group of heirs can inherit a property held in a land trust with ease of management (by the di-rector) and no need for a partner-ship agreement and a partnership

tax return9. Co-operative housing corporations may elect to hold title to their land and buildings in a Land Trust. They could then issue ben-eficial shares to their residents in place of stock certificates —simpl i fy ing control and re-cord keeping.10. When a Trust-ee of a Land Trust signs the mortgage (that gets recorded in the county court house records) the debt will not show on the bor-rower’s credit re-port. Land Trusts have been used by American citi-zens for over 100 years for good reasons. There

Is It Honest To Use A Land Trust?

are many legitimate reasons to use a Land Trust for privacy and asset protection. No one will protect your assets like YOU will. Learn all you can now because “old and cold” matters.

Ever since 9/11 it gets harder ev-ery year to be pri-vate and protect your assets. Do it now! Don’t delay! I have written a report titled, “50 Reasons To Use A Land Trust” and will send it to you for FREE. Email me with “50 Rea-sons” in the sub-ject line and I will return this report to you immedi-ately. My email is randy@realestate forprofit.com

There are many legitimate reasons to use a Land Trust for privacy and asset protection.

Randy is a full time real estate inves-tor who purchased his first rental house in 1969. He has purchased

over 200 houses and teaches other investors how to put their properties into Land Trusts for privacy and asset protection. Randy is a national teacher, author and mentor. Randy writes the only Land Trust Newsletter in the county and is the founder of the Land Trust University (an institution that teaches real estate investors how to set up and adminis-ter their own Land Trusts). Residing in Il-linois (the granddaddy state of Land Trust Law), Randy knows more about Land Trusts and how to link them to other entities than anyone else in the America today. Reach Randy at www.realestateforprofit.com or by calling him at 1-866-696-7347.

Page 8: Realty411 part2

There are many legitimate reasons to use a Land Trust for privacy and asset protection.

leaders

White Rock Capital Creates Wealth for Investors

extensive experience in raising capital, arranging project funding, and creat-ing “win-win” financing for real estate investments. His efforts have enabled Whiterock to maintain a stable source of ready funding for the company’s increasing list of projects.

Whiterock Capital, Inc. provides individuals and organizations interested

offer. Patrick leads the company efforts in the Inland Empire.

Established in Southern California, Edrosolan, who has a life-long affinity for Arizona, and in particular the Phoenix

area, has also identified and developed significant business opportunities and expertise in the Phoenix market.

In constantly changing market places, Whiterock Capital has the experience and capacity to perform on multiple diverse projects simultane-ously. Working wholesale deals, ex-ecuting multiple “fix & flip” projects, preparing “rent ready” properties for

long-term hold strategies and managing property are everyday activities to satisfy the needs of their many investors and joint venture partners.

Many of Whiterock’s initial projects were rehabilitation projects. Drawing upon years of Patrick’s experience as a prop-erty manager and home inspector, the company continues to focus on ways of reducing and elimi-nating expenses, while improving the quality and salability of the refurbished home. Consistently, the bottom line of each and every project is enhanced, secur-ing the delight and satisfaction of their respective venture partners.

Edrosolan, who has exceptional expertise in various ways of raising capital, has been able to maintain a stable source of ready funding for the company’s in-creasing workload. Edrosolan provides

Whiterock Capital, Inc., started 2012 off with a BANG, This is one of the fastest-growing companies

in the real estate market, and it’s one of our top picks for 2012. What’s driv-ing the big increase in investor interest surrounding this company? Whiterock Capital is aggres-sively expanding into both the Phoenix and California markets. The brand-new company purchased hun-dreds of properties in the Phoenix area alone last year, and it’s on pace to double in 2012.

Whiterock Capital, Inc. was born from the passion that only real estate investing can inspire. Yet, the owners are grounded enough to accelerate company growth by taking advantage of the many benefits that today’s diverse market opportunities present.

Benefits include an ample supply of deeply discounted properties, historically low interest rates, and a growing demand for starter homes and cashflowing rental properties.

Richard Edrosolan, founder and CEO, met Anthony Patrick several years ago at a real estate investment seminar. While discussing their mutual interests and phi-losophies on real estate, they realized that they had much more in common than just investment strategies.

Soon thereafter, a successful business model was developed and a vital new company born.

Based upon the diverse and well-sea-soned experience that each of these men brought to the company, financial success was attained at the earliest stage of this relationship. Although Edrosolan has wide experience within California and states in the South and Southeast, Whit-erock chose to focus initially in Southern California, specifically in the tremendous opportunities the Inland Empire has to

by Lawrence Ruano

Richard Edrosolan

Continued on pg. 45

Realty411Guide.com PAGE 31 • 2012 reWEALTHmag.com

Anthony Patrick and Richard Edrosolan

Page 9: Realty411 part2

achieve greater cash flow for a fraction of the cost of the investment. In high property value areas, to earn a positive cashflow may require a property purchase of several hundred thousand dollars. In comparison, these two markets provide investors with affordable cashflow opportunities.

For example, a newly renovated 3 bed-room, 2 bath investment property in Bir-mingham with a purchase price of $60,000, and a monthly rent of $850, minus a prop-erty management fee of $77, minus $40 insurance, minus $80 taxes, nets a monthly cash on cash return of $653, which is an annual return of 13%.

Premier believes that one of the keys to the success of their company is their in-house property management team.

Also, transparency is very important. Owners have access to a web portal, get online statements and can receive direct deposit of rents. For these important ser-vices they charge only 9%.

One Company, Twice the Cashflow

Realty411Guide.com PAGE 32 • 2012 reWEALTHmag.com

Continued on pg. 45

by Isaac Newkirk III tion, ranking 49th and 50th, respectively. Investors

have migrated to the South due to low price points, strong rental

markets and low prop-erty taxes. Both mar-kets have huge upside potential as big devel-opers are coming in,

there are six different major automobile man-ufacturing plants and

modern medical facilities, which serve to stabilize the rental markets.

Their mindset is to take the investors “concerns” out of the equation, and offer a “hassle-free” investment process. That’s easier said than done, as you know.

They offer a unique product to investors, one that simplifies buying a house, imple-menting a top-quality rehab, leasing it out, and placing it with their in-house property management team. This process ultimately leads to steady positive cash-flow.

In the smaller niche markets, you can

Premier Equity Group has been one of the most suc-cessful providers of cash-flow investment properties

in the Southeast. The company has offices in Jackson, Mississippi, and Birmingham, Alabama. They are a full-service operation, providing turn-key investment proper-ties, and other real estate services, for investors all over the world.

Birmingham and Jackson are stable markets and are not subject to the “peaks & valleys” present in more speculative areas. Premier Equity Group acquires properties from multiple sources, including: asset managers, banks, foreclosure sources, short sales and general listings. Because they get the best deals, they are able to pass on the savings to their clients. Both Jackson and Birmingham have also been rated by vari-ous publications as Top 10 Cashflow Mar-kets. The property taxes in Alabama and Mississippi are the two lowest in the na-

Justin Harrison - AL 205.616.3761Julie Harrison - MS 601.291.0689

Page 10: Realty411 part2

Is Flipping Property Good for Your Wealth?

by Kathy Fettke, CEO of the Real Wealth Network

strategy

TV shows make flipping houses look easy, and bootcamps

make it seem extremely profitable every time. But in reality, new inves-tors often get burned on their first few deals.

Everyone wants to make a quick buck, and in theory, flipping could be a way to do that. But please heed this warn-ing: Flipping is not for everyone!

Here are some tips to help you decide if it’s for you.

The Real Costs of Flipping PropertyThere are many hidden costs that new investors fail to calculate on the outset:• The cost of funds borrowed to purchase and/or renovate the property• The cost to sell, including agent fees and closing costs — estimate 10%• Holding costs, including on-going prop-erty taxes, interest charges, and insurance• Cost overruns — always allow a 10% cushion for the unexpected• Sales price variations — allow 10% less than what you’re expecting• Estimated profit — 10% at a minimum (and if this is all you’re expecting, there are much lower risk investments out there!)• Short-term capital gains taxes — poten-tially 35% of your profit. Always talk to your CPA before making any investment.

As you can see, after you calculate all repair costs, you’ll still need to be able to acquire the property for less than 60% of current market value.

Is it possible? Yes. Is it easy? No.

Buy & Sell VS Buy & Hold At Real Wealth Network, we advocate

buy & hold investing for the following reasons:

• Flipping requires hands-on involvement and most working people don’t have the time.• Successful flipping requires that you only invest where you physically live. A buy & hold investor can invest anywhere, have many investments working at the same time, and still make money doing other things.• A cash flow rental property can yield over 10% return after all expenses, without the risk of rehabbing and trying to sell at the right time.• Rental income is much more favorably taxed, and capital gains can be avoided upon sale if a replacement property is purchased according to IRS 1031 Exchange Rules.• Growth over time, for both rental income and capital growth, works the same as compound interest; it’s one of the most powerful tools in an investor’s arsenal.

Thirty years ago, one would

have had to put down $13,000 to buy real estate. Today that property would be completely paid off, and would have more than tripled in value. What’s more: you’d be earning at least $13,000 rental income per year! The same power of multi-plied growth is available today simply because prices are so low.

Real estate bought today could very well be worth more than three times its value 20 to 30

years from now. There is no other investment that delivers cash flow and capital growth like long-term real estate investments do.

Flipping is a job. Buying and holding property is an investment.

Kathy Fettke is the founder and CEO of Real Wealth Network “The Real

Estate Investors Resource.” Members have access to free

education, resources, and referrals to turn-key rent-

al properties around the United States. Real Wealth Network

has over 8,000 members, so the shear power of numbers al-lows the group to acquire properties at huge discounts.

Membership is free. Kathy is also

host of The Real Wealth Show on KABC

Los Angeles and on iTunes and is a regularly interviewed guest ex-pert on ABC, CNBC, CBS Market Watch and NPR.

Page 11: Realty411 part2

The Texas economy and real estate market remains on fire with inves-tors from around the world flocking

to top Texan cities to add rentals to their portfolio for appreciation, cashflow and added stability. San Antonio offers one of the fastest growing job markets in the coun-try with a projected 10-year job growth of 12.2%, according to Economy.com. The city also offers lower business and lifestyle costs than comparable areas and a well edu-cated productive workforce. To learn more about San Antonio, we in-terviewed Clay Schlinke, a master devel-oper, investor and CEO/owner of Prosper-ity Homes and Investments (ProsperitySA.com), an online resource for the San Anto-nio real estate market.

Question: What kind of opportunities are you seeing in San Antonio? Answer: San Antonio has remained stable during the past several years and has con-tinued to add jobs and people to our city. Multiple companies have been moving to San Antonio over the past few years and now with the discovery of the Eagle Ford Shale oil and gas reserve, it is helping with the continued growth.

Q: What is the best part of being an in-vestor and buying in San Antonio? A: Due to our economy and great rental market, it is easy to cashflow in our city. With the cashflow and with the stability of our economy, there will be future apprecia-tion of your properties, which all add up to a great investment.

Q: How is the rental market?A: The rental market is at an all-time high right now. The occupancy rate is 92%.

Q: I understand the military bases pro-vide a great tenant pool and also eco-nomic stability. A: Yes, all of our proj-ects are in close prox-imity — within a 15 minute drive to all of the major bases in San Antonio.

Q. What makes Pros-perity Homes and In-vestments unique in the marketplace? A: We are the only new home builder that specializes in building townhomes, duplexes and fourplexes. We develop our own subdivisions in locations that have high rental demand and are in strong areas for future apprecia-tion. We are able to give the inves-tor instant cashflow and even equity when they purchase. We have also been success-ful in setting up our developments so the investor can purchase a fourplex building, but later sell them individually as town-

homes if they choose to really maximize their return. We also provide a full two to 10 year warranty to the investor to pro-tect their investment.

Q: Do you prefer multifamily rentals as an investor? A: I prefer our product because we offer

several advantages to our in-vestors, which means higher rents and higher occupancy lev-els. First our units are set up as townhomes with a garage and backyard. Second, we have 3 bedrooms with 2.5 baths with great amenities that include granite counter tops, concrete stained floors, crown molding and built-in niches. Lastly, we also include a park and pool in our neighborhoods. As a tenant you can get everything at one of our developments that an apart-ment can offer, but you also get a garage and yard with no neigh-bors above or below you.

Q: How long have you person-ally invested in real estate? A: I have been investing since graduating college in 1994. I own both single family and multifamily properties.

Q: What do you foresee for the San An-tonio market for 2012? A: Based on the last few years, San Anto-nio has as bright of future as any city in the United States. Our government is very pro business and you can see that when you arrive here. In 2012, and beyond, we will see continued growth and success in San Antonio.

Market Spotlight: San Antonio, TXLOCATION:San Antonio, TXCOMPANY:Prosperity Homesand InvestmentsCONTACT:Clay Schlinke ph: 210.771.0861web: ProsperitySA.com

Realty411Guide.com PAGE 34 • 2012 reWEALTHmag.com

Clay Schlinke and his family

Page 12: Realty411 part2
Page 13: Realty411 part2

Phoenix is a great place to in-vest in real estate. On February 9, 2012, CNBC.com released a slideshow on the “Top 10

Turnaround Towns” in the nation. The slideshow placed Phoenix at number two.

Two years ago, Ray Bansal, president of USA Property Investing, a company that spe-cializes in turn-key property investments, had already pre-dicted that the Phoenix met-ropolitan area would be one of the most promising areas in which to invest. This has been proven to be true partially due to the historically low prices coupled with the state’s commitment on supporting economic growth in key industries.

In a recent article published by the Wall Street Journal on March 13 of this year, Thomas Lawler, an independent economist declared that “Phoenix has hit a bottom.” The article also stated that the low prices in Phoenix paired with the upswing in the economy has led to an increased demand in hous-ing, and not just from first-time home buyers. Big and small investors are snapping up the bargains. In fact, one quarter of all properties sold last month was to an out-of-state buyer.

Although it may seem like the window of opportunity is almost gone,

with the right team, investors can still purchase investment properties that will bring them immediate cash flow and long term appreciation. However, investing in an unknown market can be a huge concern for many investors. Ray

Bansal understands this, and with his 20 plus years of general construction and real estate experience, Bansal has developed a turn-key investment system designed to eliminate concerns and doubts for real estate investors.

Through this process investors can choose from fully rehabbed cashflow-ing properties, some already rented, in great family-oriented neighborhoods. The turn-key system allows for USA Property Investing to handle the whole transaction from beginning to end. This includes fully rehabbing the property, scheduling appraisals and inspections, all the way through to tenant placement

and assigning a property management team.

Bansal also knows that for some investors hands-on research is the only way to develop a real comfort level when investing. That is exactly why

Bansal started a Phoenix Investment Property Tour, so investors can meet with him, learn how the company works, the many benefits, and view the market first hand.

By attending the Phoenix Investment Property Tour, investors can view the workmanship of the rehabbed properties, as well as evalu-ate the various neighbor-hoods and view some of the commercial developments currently enhancing the Phoenix economy. Along

with the research and analysis provided by USA Property Investing, investors can now make a truly informed choice. The team at USA Property Investing is fully invested in their clients’ success and can tailor the investments to suit the individual investor’s personal needs.

Don’t have all the cash needed for a purchase? No problem, USA Property Investing has the resources to help you achieve your goals. Many financing options exist, so contact Ray Bansal at (888) 616-3706 to learn more.

Learn about their next tour, at:PhoenixInvestsmentPropertyTour.com

Phoenix Starts Recovery

Realty411Guide.com PAGE 36 • 2012 reWEALTHmag.com

by Wendy Pineda

Page 14: Realty411 part2

“What we can be, we must be,” is one of Dr. Maslow’s famous quotes.

Abraham Maslow is the father of human-istic psychology. He is renowned for his Hierarchy of Needs and Self Actualization theories. Most of his writings are about human motivation and personality. Today, his teach-ings are successfully applied in fields of business, marketing and communication among oth-ers. Maslow was born in New York 1908 and died in 1970.

"If you deliberately plan on being less than what you are ca-pable of being then I warn you, you will be very unhappy for the rest of your life.”

— Abraham Maslow Dr. Maslow believes human

beings have an instinct (need or impulse) that drives them to be the best they can be. On the oth-er hand, he says that the story of the human race is the story of men and women selling themselves short.

So what gives? Let me give you an ex-ample. Imagine drawing a straight line that goes to infinity on both sides, from one end to another. Now think of yourself standing in the middle of this line, which we call point zero. One side of the line starts with plus 1, plus 2, plus 3 and so on to plus in-finity. On the other side of the line, you have negative 1, negative 2, negative 3 and so on to the negative infinity.

Dr. Maslow states that at any given mo-ment, when you are faced with making a decision, you have a choice to move for-ward in the direction of growth (plus side of the line) or step back into the direction of safety (comfort), which is on the nega-tive side of the line. So that if you are at point zero and faced with a challenge that requires a decision on your part. What will you choose?

What do most people do when confront-ed with problems of life? They usually step back into safety or the negative terri-tory. The first such decision results in go-ing back to negative 1. And so they justify by saying, “it’s nothing, I just went back one step, I can always make up for it lat-er.” But here’s the catch that most people miss. It really cost them two steps and not one! They could have made a decision to move forward into growth, which would

have put them on the plus 1, but they chose to step back to safety and landed on negative 1, the difference of two points and not just one, as com-monly believed.

Here’s what’s worse. Every time you make such decisions, the gap between what you could have done and what you ac-tually did grows wider. Dr. Maslow

affirms that all our regrets, anxiety, frustra-tions, unhappiness, anger, depression, etc. lies in that gap which separates growth from comfort or realizing one’s full po-tential from settling for less (selling one-self short.) People take all kinds of drugs for various mental and emotional condi-tions when all they have to do is to pick growth over comfort and security. Speak-ing of which, do you really believe there’s such a thing as security in life? If you think about it, it becomes clear that “security” is a myth. After all, we have very little con-trol over events and what will happen next. Some schools of thoughts recommend the notion that if you want “security” it’s best to seek insecurity! By that, they mean to simply allow things to take their natural course. That does not mean you sit back and do nothing. Rather, you do the best you can but not get attached to the results. Only in this way you would be able to experi-ence a life of joy and fulfillment.

Back to our discussion of why the vast majority of people choose comfort over growth almost every time they make a de-cision in life. Is there any hope of revers-ing this vicious cycle? And the answer is………….. Yes! It’s possible and you won’t need several lifetimes to get it done! You surely can reverse this process but it requires effort initially. But in the long run your life will be a lot more effortless!

Just so we are clear about growth ver-sus comfort, I’ll give a few examples of how people choose safety over growth: 1. You got angry at your son and decid-ed to break off communication a while back. An opportunity arises to sit down and talk things over, but you take the easy way out by going into your comfort zone and watch the ball game. 2. You need to get up early and take care of something important. Instead, you look at the clock and go back to sleep! 3. You find a good property to invest in but at the last minute you’re gripped by fear and chicken out!

Recognition is the half way to transfor-mation. So, first examine your own life and look at moments when you could’ve and should’ve gone for growth but you chose safety. Then realize that the gap where all this negative energy resides is dragging you down. Since there’s not much we can do about the past, we need to take action in the present to af-fect future. For those of us who insist to live in the past, the famous poet, Omar Khayyam has this to say: “the moving finger writes and having writ moves on. Nor all thy piety nor wit can lure it back to cancel half a line, nor all thy tears wash out one word of it.”

Once you come to terms with your past and realize you can still do something about your future in the present time, then resolve to never again step back into safety when you can choose growth instead. As you begin to make decisions that are more growth based and less on safety, you will see that the gap is get-ting narrower and narrower. Soon you'll gain control of your life and move in the direction of self-actualization, which is, according to Maslow, where you can re-alize your full potential and maintain a happy and fulfilled state of being.

To your success and life of abundance,

Sam Sadatwww.samsREclub.com [email protected]

“What We Can BE, We Must BE”

motivation

Realty411Guide.com PAGE 37 • 2012 reWEALTHmag.com

Sam Sadat

Page 15: Realty411 part2

BuyMemphisForeclosures.com is your ideal source for port fo l io -bu i lding and

cash-f lowing propert ies in Memphis , Tennessee and other c i t ies . W e

prov ide houses in preferred areas at low pr ice points with excel lent cash

f low. Our proper t ies are a lready rented and we prov ide except ional in -

house management . Bui ld your port fo l io the right way , f rom anywhere, with

an exper ienced and rel iab le team. W e spec ia l ize in c reat ive f inanc ing

of fer ing prefer red inst i tut ional, pr ivate and owner f inanc ing.

Visit us on the web: www.BuyMemphisForeclosures.com (901) 870-2301

The Best Opportunities …don’t last forever

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

By Robert Feol

A few short years ago, business partners Bert Miller and Hans Guenther had a business that was primarily focused on de-

livering retail level homes to end users in Memphis, Tennessee. Their partnership, which has spanned over 20 years, was thriving, as they realized their mission to take on foreclosed, non-performing real estate, revitalize it, and provide desirable housing to their buyers while reinvigorating the tax base.

Then, the credit crisis hit and the two partners found themselves be-ing forced to redevelop their business model.

The so-called credit crisis has challenged today’s modern real estate investor in a variety of ways, but for investors like Miller and Guenther, the fallout was a significant one — the major-ity of their purchasers were unable to buy homes, period.

“It was like the hammer falling,” says Bert Miller. “We woke up one day, and so many of our pending purchases were being challenged or falling apart due to new appraisal restrictions, HVCC rules, etc... Changes in credit were hamstringing families who wanted to purchase their pri-mary residences. We began to realize that our only answer to the problem rested not in waiting and hoping things got better, but in radically revolutionizing our busi-ness model. There was simply no other way to continue our business in its current incarnation.”

Enter the MatrixMiller and Guenther had come to a cross-roads, not just metaphorically, but literally speaking. What do two ‘rehab to retail’

winters with little to no snowfall; •A high rate of foreclosures, al-

lowing properties to purchased and resold inexpensively, pro-

viding an optimum product to an end buyer; •A dollar-based economy;

Miller and Guenther, who already held 300 rental homes between them, had no problem filing in the logisti-

cal blanks, which remained to be identified for them to pro-

duce what is, today, a brilliant success story in the making. They

already had a licensed realty broker-age, which was managing their portfolio

successfully. Why not offer that service to investors in the scope of a truly ‘turnkey’ system that provided investors who wanted to purchase full-service properties in Mem-phis great investment homes that were on-line and performing

Going the DistanceWhat really sets Miller and Guenther apart is their clientele — almost 100% of their end-user sales are to international investors. Miller and Guenther have traveled exten-sively, spending a significant time in Sin-gapore in 2011 working with their clients, and they are scheduled to travel to New Zealand and the United Kingdom in the early months of 2012 as keynote speakers, discussing their turnkey real estate system to foreign investors. The early prognosis for 2012 anticipates Miller and Guenther selling about 150 homes to foreign buyers this year, not counting their domestic out-put and retail, and the end-user sales they still engage in.

Establishing a truly turnkey system wasn’t the difficult part of reinventing the business model — the difficult part, ac-cording to Hans Guenther, was convincing investors that there wasn’t some kind of hidden “angle.”

He adds: “We had so many investors af-ter meeting us and hearing us at seminars ask us bluntly: ‘What’s the catch? What are you guys hiding? This seems to good to be

Hans Guenther and Bert Miller

Going Global to Meet Demand

real estate investors do when their entire target sales group evaporates before their eyes? While any investors would tuck tail and run, or become complacent in trying to

simply find a new way to address the problem of U.S. mortgages be-coming few and far between, the pair opted to ‘take the red pill’ and go a bit further down the rabbit hole, asking a hard-hitting and probing question — if our target mar-ket has disappeared, who then IS our target market?

The answer was found, interestingly enough, outside of Memphis, Tennessee.

Miller and Guenther had focused so in-tensely on their domestic market in their resident city that they had forgotten the whole world was, literally, just waiting for them to show up.

They started to reassess the value of their product, and looked at it in its most con-summate and simple form. Memphis, Ten-nessee real estate offered:

•Incredible cashflow per square foot;•Low purchase points per square foot;•A stunningly high per capita rent al rate (almost 50% of the population of Memphis is comprised of renters seeking rental homes);•A Southern climate, which had mild

Small Real Estate Company Finds Success Taking its Business Model to an

International Audience

Realty411Guide.com PAGE 38 • 2012 reWEALTHmag.com

Continued on pg. 45

Page 16: Realty411 part2

BuyMemphisForeclosures.com is your ideal source for port fo l io -bu i lding and

cash-f lowing propert ies in Memphis , Tennessee and other c i t ies . W e

prov ide houses in preferred areas at low pr ice points with excel lent cash

f low. Our proper t ies are a lready rented and we prov ide except ional in -

house management . Bui ld your port fo l io the right way , f rom anywhere, with

an exper ienced and rel iab le team. W e spec ia l ize in c reat ive f inanc ing

of fer ing prefer red inst i tut ional, pr ivate and owner f inanc ing.

Visit us on the web: www.BuyMemphisForeclosures.com (901) 870-2301

The Best Opportunities …don’t last forever

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

Page 17: Realty411 part2

Join Us At The BiggerPockets Summit!

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BiggerPockets is at it again. The company that changed the way real estate investors network, learn, and do business via its website, is announcing it inaugural live conference and trade show.

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BiggerPockets Real Estate InvestingSummit & Expo 2012

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http://www.biggerpockets.com/conference

Page 18: Realty411 part2

Trading Stocks VS Investing in Stocksby Tyrone Jackson

Can you really earn $8,000 profit per month trading stocks online? Yes you

can. There’s a reason the really rich own and trade stocks AND buy real e s t a t e . T h e stock market h a s a l w a y s been a place to earn fast, s e x y m o n e y for those that have a financial education. So what’s t h e p r o b l e m ? M o s t Americans never seek to be fi-nancially educated themselves,

therefore they are locked out of the greatest game in the world… investing and trading stocks. For way too long the stock market has been an ex-clusive playground for the up-per class. Today stock research and the ability to trade is just a click away.

There are two major ways to earn money in the financial markets. They are investing, (purchasing shares and letting them increase in value over the long term), and trading (buying and selling shares very quick-ly). The real estate equivalent to stock trading is buying a house, fixing it up, and then selling it for a profit as soon as possible.

As a stock investor, your in-tention is to purchase shares of

a company whose annual and quarterly earnings are rising. Historically, increased earnings creates pressure on the stock price to increase. Stocks that

trade above $100 per share have in-

creasing earn-ings. In the

We a l t h y I n v e s -tor pro-gram we refer to t h e s e

c o m p a -n i e s a s

“good dates.”As an inves-

tor, you’re hoping that the company continues to have success and earning in-

creases over a long period of time, let’s say two to five years. When XYZ’s stock price in-creases from $100 to $110 and you own the shares, your investment has increased in value ten percent. That means your $10,000 is now $11,000. In the above scenario you only have a paper profit. An actual profit results from selling your shares.

Once a stock price has in-creased, you have several inter-esting choices, you can:1. Sell XYZ stock for a profit, and enjoy your ten percent return.2. Purchase more shares and ride the wave of success. 3. Find another company to invest in using the same crite-ria that led you to XYZ.

A trader takes a different approach to stocks. A trader is in the game of taking small quick profits. Let’s take a look at a company like eBay (ticker symbol EBAY). eBay is cur-rently trading around $37 dol-lars per share. Maureen, a smart, intelligent and attrac-tive real estate investor and entrepreneur, understands that to create real wealth she needs to be diversified. That means owning stocks and real estate. She likes investing in Dow components like MacDonalds, AT&T and IBM for the long term and using a small portion of her investment capital for trading others. One of her fa-vorite stocks to trade is eBAY.

On Monday shortly after the

stock market opens, Maureen logs into her online brokerage account and purchases 1,000 shares of eBay at $37. That’s a total investment of $37,000. She’s willing to sell the shares the second they reach $38 dol-lars and capture a quick profit.

Maureen is not day trad-ing. Day trading requires that you sit at a computer while the stocks are trading and buy and sells stocks when they increase five to ten cents above your purchase price. Most people who attempt day trading lose money.

Instead, Maureen prefers to volatility trade because the free software in her brokerage ac-count will trigger a sell of her eBay shares while she’s out in the world enjoying her life.

Wednesday, two days af-ter Maureen purchased her eBAY shares, the stock’s price reaches $38 shortly af-ter the market opens at 9:30 a.m. eastern time. The soft-

ware inside of Maureen’s account automatically trig-gers a sell while she is at the gym. When she returns home, Maureen gets an email and discovers she has just earned a $1,000 profit from the sale of eBay shares. How did that happen? Let’s re-view. Monday Maureen pur-chased 1,000 shares of eBay at $37. Her total investment was $37,000. When the share price reached $38 her 1,000 shares were sold. Maureen’s initial investment of $37, 000 was returned to her account plus a one dollar per share profit. One dollar multi-plied by one thousand shares equals $1,000.

If Maureen can buy and

diversification

Isn’t it time you added stock market trading to your list of revenue streams?

Continued on pg. 46

Realty411Guide.com PAGE 41 • 2012 reWEALTHmag.com

Page 19: Realty411 part2

3. New Infrastructure Improvements, 4. Easy Affordability, 5. Opportunity for Appreciation, 6. Tightening Vacancy, 7. Sales Inventory is Turning.

Based on these seven factors, I then as-sess the area’s median rent prices. It is im-portant to analyze the median sales price, quality and quantity of the houses in a given area. The areas offer at least a 1.25% or bet-ter rent ratio (monthly rent/sales price) get a second look. When it’s time to buy, I look for houses that will cashflow at just under the area’s median rent. Buying the right property is only a small step in investing success. The biggest factor of profitability is keeping your property rented. A lower rent range will expose your properties to the largest group of potential renters in the area and let you select the best tenants.

So, going back to the question — “ Is it time to buy real estate and if so, where?” — Yes it is the right time to buy. Where? In a market that will provide you stable, depend-able cash flow for the long term.

Contact Lori Greymont at [email protected]

price, square footage, cap rate, asset specif-ics, etc.

The platform lists the assets for auction, and people are able to deal directly with each other.

“I’m allowing the buyer and seller to talk with each other direct and connect without any regulation – This greatly increases the chances of getting a deal done – The other sites won’t do this because they afraid of being cut out of the loop and not getting their fee after the transaction.” according to Piscano.

This helps with the buyer and sellers coming to an executed transaction faster. The website attracts global buyers and each buyer and seller is different and the personal relationship of direct contact is

extremely valuable. Having thousands of connections on

sites such as LinkedIn.com personally Pis-cano knows the value of an online network and wants to allow RealBay’s members to truly capitalize on the exposure the site will allow them to have to potential clients as well. The site will have several varia-tions on the style of listings and auctions users may use. “Own it now” and “Best Offer” selections will be available to peo-ple, according to Piscano.

Currently, the website is open for the public to create accounts at no cost. It is a traffic-based website and sponsored op-portunities will be available soon to spe-cific service providers that would like to be showcased to members when those mem-bers need them the most. “In the future, we envision a site where users pay nothing and we truly become a free real estate marketplace and social network, driven by our members activity similar to Facebook,” Piscano explains. The site will allow for networking con-nections between REALTORS®, investors and different types of real estate service providers in a busy and exciting online marketplace.

For additional information, be sure to visit www.RealBay.com

tematic process to help you evaluate potential property for investment pur-poses.

By using this software the investor evaluates each property the same way using the same criteria. This approach allows the investor to identify his return on investment (ROI) using a standard set of rules for evaluating all properties.

As shown in the table and the charts on page 22, multiple properties are displayed side-by-side in numerous il-lustrations comparing the performance metrics of each. This enables the inves-tor to quickly grasp the relative value of one property over another.

As an investor, this is what you need to be focusing on, relative rates of return and values set on the same criteria.

RPA allows the investor to tailor the software to his individual market and

then evaluate any property he looks at against the same criteria. Hence the con-sistent, repeatable results all profession-als look for to evaluate their work.

Just like the serious golfer who buys the best set of clubs he can, savvy inves-tors need decision-based tools that assist them in making fast, comprehensive and accurate assessments of a potential prop-erty’s value. Gary Geist is a seasoned real estate in-vestor with over forty years experience. He has owned property in several states in the Midwest and currently has large property holdings in Ohio, Indiana, and Pennsylvania. He is the owner of Hom-eReplay, LLC, which is based in the Midwest and provides tools and turn-key investment solutions to investors world-wide. For more information about RPA visit online at: www.homereplay.com

business at present, primarily due the in-creased difficulties of potential clients get-ting financing. Many Section 8 properties have been located in neighborhoods that have added to the problems in acquiring buyer-financing. BH&R determined that buying in the more upscale neighborhoods significantly increased the prospects of a positive return for investors. The much lower turnover rate in these neighborhoods was greatly aided by the tenant base. It’s the age-old real estate mantra of “location, location, location.” Whalen believes that if you focus your efforts in areas where people want to live, you’ll get a different client and a different tenant base. They’re only buying out in the suburbs these days.

BH&R’s investors don’t usually worry about the need to get financing. Almost all deals are sealed with cash; with many clients using savings and retirement funds.

BH&R remains aware of the com-petitive marketplace, but Whalen puts a 20-year plus career on the line. Having only specialized in the Cleveland area, he knows the area like the back of his hand. It’s a people-oriented business and he proudly points to the fact that he’s on a first-name basis with all the people that matter. He recognizes that the over $5 bil-lion in construction taking place in Cleve-land will attract investors from the world over. He wants potential investors to know that he’s there to serve their interests.

Visit online at: www.BuyHoldRent.com

Realty411Guide.com PAGE 42 • 2012 reWEALTHmag.com

Buy, Hold & Rent, pg. 26

Rapid Property Analyzer (RPA), pg. 22

RealBay.com, pg. 11 Spring has Sprung, pg. 9

Page 20: Realty411 part2

ing any payments pre-suming he could buy another couple years of free rent. This time, we waited for six months (listening to his empty promises and excuses).

When we were finally able to effect foreclosure, as per our agree-ment, the lis pendens (Notice of Legal Ac-tion) hit the newspaper, immediately luring the so-called “Consumer Advocates” out from under their respective rocks by the dozens. The particular “extortionist” that Mr. Williams selected agreed to sue us for “equity stripping” and taking uncon-scionable advantage of the poor, gainfully employed man who earned approximately $10,000 per month but refused to pay his $3,500 monthly mortgage payment (for two and a half years by this time).

At the settlement conference in court the two opportunists (client and attorney) sug-gested they would settle with us for an even $1 million dollars. When we insisted on a trial, the attorney decided that he’d now settle for an even $40,000. We countered with an offer for him to stick his head in a bucket and requested a jury trial. That turned the tables on Mr. Lawyer, since he was basically broke (as many are), and not getting paid by his client, hoping for a set-tlement and payday. Since he would have had to front his client’s court costs, he just gave up (i.e., Williams vs. Land Partners of American, Va. Est. January 2007).

The basic lesson to be learned here? Be-cause the property in question was held by a third-party, bona fide, properly structured title-holding land trust, all claims of Eq-uity and Unlawful Eviction and Wrongful Foreclosure fell on deaf ears. Without the land trust, everything would have turned out completely differently, and in addition to our $96,000 and $25,000 court costs to date, we would have lost the house and been sued for a couple extra hundred thou-sand dollars to boot.

Regarding real estate ownership in par-ticular, some legal advisors will tell you that you do not need to use a Land Trust. They’ll often suggest that you hold title to your real property in an LLC instead. This is not necessarily bad advice by any means; it’s just not great advice. If you are interest-ed in setting up the BEST structure to pro-tect you and your real estate assets you’ll

start with a Land Trust first, then bring in the LLC secondarily as the (or “a”) benefi-ciary of the land trust.

So, what is a Land Trust? Unlike most trusts, the Illinois-type land trust isn’t a trust per se at all. Despite the terminology, the corpus of a “land trust (the entrusted property)” is not vested in a trust: it is in-

stead vested in an entity that is designated to serve as a trustee for the beneficiaries (not for a trust). Land Trusts are essential-ly privacy tools for real estate asset protec-tion. In other words, they are structured so as to obfuscate discovery by the public of a property’s ownership control.

BiggerPockets Hosts a GroundBreaking Summit

The most sophisticat-ed investors in the real estate industry

are flocking to Denver, CO on March 23rd and 24th for the first annual BiggerPockets Real estate Investing Summit 2012. The event, produced by the nation’s most popular online real estate network, will take place at the Colorado Convention Center.

Over 200 years and thousands of deals worth of real estate investment experience will be available to those attending. Scheduled speakers include some of the most renowned investors in the industry, including: Bruce Nor-ris of the Norris Group, best known for his California Market Timing Report;

Geraldine Barry, the head of SJREI Association whose club was winner of the 2010 Award of Excellence from National REIA; and Tah-ani Aburaneh a self-made multi-millionaire real estate developer and author of Real

Estate Riches.“Our goal is creating this unique con-

ference is to provide experienced inves-tors, and those trying to learn, with a no pressure, no nonsense, and no upsell environment,” says Joshua Dorkin, Big-gerPocket.com’s founder and CEO.

Tickets for the two day event, which includes access to all conference ses-sions, are $250. For more information, please visit: http://www.biggerpockets.com/conference.

More Cashflow, Less CashLooking for a way to

jump into real estate by utilizing leverage? Then talk to the Gosser Bighaus Team at Guild Mortgage. The team is led by Steve Bighaus and Jason Gos-ser, who specialize in rental property financing.

“We have techniques and loans that many lenders do not offer, and usual-ly don’t even know about it,” Bighaus explains, and adds that they work with many out-of-state investors.

With all the negative me-dia coverage, many investors wrongly assume that investor loans are impossible to get, but that assumption is false. Take a look at some of their numbers:

Gosser Bighuas weekly average:Total Amount Funded: $330,725Equity Partners: $130,275Cash Flow: $1,931.99Gosser Bighuas monthly average:Total amount funded: $1,124,087Equity partners: $468,913Positive Monthly Cash Flow: $8,983

Realty411Guide.com PAGE 43 • 2012 reWEALTHmag.com

Joshua Dorkin

Jason & Steve

Bill Gatten

Ate you a Target for a Lawsuit? pg. 23

Page 21: Realty411 part2

of default. The executed reverse quit claim deed held in escrow prevents the need to go through lengthy and expensive foreclo-sure proceedings and allows the lender to take title to the property, which lender can hold, sell, and/or assign note to a different pre-approved refinance borrower. Since we loan up to the borrower's maximum loan to value ratio, typically 70% to 75% minus closing costs, that leaves 25% to 30% eq-uity in these properties to further minimize

risk. We hold and escrow the renovation fees with new borrowers and provide a dis-bursement schedule based on the renova-tion list they provided to the appraiser to ensure the added value has been made to the property. Since 2008, we have funded over 100 transactions with 0% default rate. We contribute our 0% default rate to our system in which our funds are only acces-sible to those borrowers pre-approved with our preferred lender, whose experience has proven to close the refinance loan with these borrowers based on their initial pre-approval qualification.

Now that we have explained our process for minimizing risks through our lending requirements, lets progress to the good stuff, the returns. We offer our investor lending partners 2 points (%) of the loan amount plus 12% interest. We do not pool investor funds together. We match each investing lending partner to the each in-dividual loan. The refinance process can take between 30 to 90 days therefore, an example, if the investing lending partner funded $200,000, investor would receive 2 points (%), $4,000 plus 12% interest only payments of $2,000 per month. If the re-finance closed in about 30 days, the total profit would be $4,000 plus $2,000 total-ing $6,000 and their $200,000 reimbursed

by C. Han of 360 Investments

As of just recently, a six month Certificate of Deposit (CD) interest rate was a whopping

0.45%, a 1 year CD was 0.76%, and a 5 year CD was 1.61%. Checking and savings interest rates are 0.52%. Other banks like Bank of New York Mellon (BNY)

announced last year that they will start charging savings account holders 0.13% for holding their cash. With the stock market drops, many people are moving their mon-ey into a saving or CD just to minimize the loss of capital they experience so frequent-ly in the stock market. Due to many inves-tors lack of resources to other investment vehicles, savings, CDs or mutual funds are their only options besides sticking it un-der their mattress. With high inflationary times, these measly interest rates are noth-ing: $1,000,000 with savings rate of 0.52% earns $5,200 a year / $433.33 a month.

There are many other investment vehi-cles that offer much higher returns. Many uneducated investors think any returns higher than traditional savings, CDs or av-erage stock market returns are riskier, and that could very much be the case, but you will learn how hard our investors’ money is working for them while still minimizing risks. There are many titles that coin this type of investment activity such as Hard Money Lending, Private Money Lend-ing, Trust Deed Investments, Notes, Being the bank, Mortgages, Bridge Lending and many other known titles. Our investor lend-ing partners earn on average of 20% to 32% returns on their money. Our lending pro-gram is short term, up to 90 days, offered to borrowers purchasing residential (1-4 units) real estate for monthly cash flow investment

How Hard is Your Money Working?

Continued on pg. 46

p u r p o s e s . We m i n i -m i z e t h e risk of our loan by only lending to borrowers who are pre-a p p r o v e d for the refi-nance loan.

We send potential borrowers to our pre-ferred mortgage banker to get pre-approved and the banker runs the borrower's credit, financials and then provides a pre-approval letter with their maximum loan amount and loan-to-value ratio. Based on the bor-rower’s pre-approval figures, we loan up to the borrowers’ maximum refinance loan to value minus their refinance closing costs. These borrowers are real estate investors purchasing distressed properties using our short-term funding so they can make stron-ger offers with quick closings that get ac-cepted. These borrowers add value to the properties through proper renovation there-by increasing its value and then refinances which pays off our short term loan based on this new higher value. The risks asso-ciated our investment lending program is the borrower’s inability to refinance due to loss of job/income, death and/or real estate market depreciation lowering value, requir-ing borrower to bring funds to close, which they may not have. We minimize the risk by requiring borrowers to get pre-appraisal report(s) with the approved appraisers on the refinance lender’s list. We secure our position on title by taking first (1st) lien position with Trust Deed/Deed of Trust/Mortgage (depending on the state). Our closings also require lender’s title policy, property insurance and a reverse quit claim deed executed and held in escrow in case

Realty411Guide.com PAGE 44 • 2012 reWEALTHmag.com

Page 22: Realty411 part2

How Hard is Your Money Working?

risk of their first investment. They should not just look at returns on paper — there are a number of factors that may whack those projections. We are doing webinars to edu-cate investors. They can also download our white paper: “Critical Mistakes in Real Es-tate Investing” from our web-site www.homeunionservices.com. We also invite investors to “like us” on our Facebook page (www.facebook.com/homeunion), where we offer several tidbits and research on real estate investments.

Q: Do you have any tips for more experienced investors who may have lost money during the recent bubble?A: Experienced investors are like day traders, they know which stock to pick and when to buy and sell. The single-family real estate market hasn’t had the same level of published research that other markets enjoy. HomeUnion is changing this and experi-enced investors can now tap into new markets and ana-lyze data to reduce their risks without having to fly all over the country to do this.

For more information, visit:HomeUnionServices.com

true!’ And the fact of the mat-ter is, our homes are general-ly returning net yields of 12% to 15% consistently, which in and of itself is quite remark-able. It is a testament to the adaptability and efficacy of the system my partner and I designed.”

Miller and Guenther are certainly at the vanguard of the pack of today’s whole-sale turnkey providers. But, beyond their innovative busi-ness model and international

nating international inves-tor, therefore, faces a unique challenge when they find that modern institutional bank fi-nancing in the United States is not favorable to the foreign national who wishes to take advantage of a weak Ameri-can dollar and truly depressed American housing markets, however opportunistic the timing is.

Most banks will just say ‘no’ to foreign investors who want to apply for loans from American banks. Miller and Guenther, again, had an al-ternative answer that was, unbeknownst to them, going to have a dynamic impact on their business and transaction volume — the use and imple-mentation of private lending.

By partnering with a local lender who has just imple-mented a trademarked private lending paradigm created by a local Memphis real estate investor, Miller and Guenther

Besides turn-key rentals, the Premiere Equity Group offers a number of products, business models, and revenue streams that cater to each type of inves-tor, including:

Acquisition Lending: Great products for passive investors, currently offering great returns on short term funding for ac-quisitions.

Cashflow Properties: The company’s specialty, setting up quality rental property, qual-ity renovations, in great areas, with their in-house property management division protect-ing the investments.

IRA conversions: Using self-directed IRAs to take advantage of tax saving opportunities.

Pre-rehab purchases and pre-funding: Pre-fund your own deal to insure the lowest possible basis for each transac-tion.

Marketing Program: Pay-ing investors to market for the company and paying up to $1,500 per sale per client.

Premier Equity Group is looking to make 2012 profit-able for its investors. Premier Equity Group invites you to visit them on the web at www. EquityGroupOnline.com and explore the many investment opportunities available in their Southeastern markets.

clientele, the pair are espe-cially well known for their mastery and implementation of private financing.

Private Financing Paradigms, Applied

As in the United States, for-eign investors are all about le-veraging their capital deploy-ment and insuring they are maximizing the use of other people’s money, whenever possible. Today’s discrimi-

began to offer non-qualifying, non-recourse, private lending for each and every property they offer to investors, re-gardless of nationality. This establishment of what is es-sentially ‘asset based lending’ has propelled their business forward.

Miller and Guenther’s rein-vention of themselves holds critical lessons for us all.

The real estate business in the past few years has faced a tumultuous and rocky path, one which has seen many in-vestors fall to the wayside.

In an industry vertical where only the strong truly survive, Miller and Guen-ther’s partnership demon-strates that adaptability and perseverance truly carries robust and great rewards, for those strong enough to cross the finish line.

Visit online www.BuyMemphis Foreclsoures.com

Realty411Guide.com PAGE 45 • 2012 reWEALTHmag.com

Premier Equity, pg. 32 HomeUnion Services, pg. 6

in participating in the real estate market, either as active or passive investors, a proven experienced team of real estate experts dedicated to assisting investors achieve their goals.

WhiteRock Capital’sTestimonials from Clients:

“Learning the real estate investment business is difficult, there are many aspects related to the business not brought out in the “Real Estate Investment Seminars,” as most seminars are a market place to sell ideas, and not the details of investing.

I have worked with both Anthony and Richard and be-cause of their combined knowl-edge, I have gained a better understanding of the business. I have more confidence in knowing what to do and how

to avoid some of the pitfalls. Also, Anthony and Richard are always available to help in dif-ferent situations.”

~ Edwin Mizunaga

“Since May 2009, I’ve invested with Whiterock in about six projects including fix and flips, wholesale deals, and now “buy and hold” cashflow homes in the Phoenix area. In every case, Richard and An-thony have gone above and be-yond to assure the investment was secure and profitable. My plan is to work with Whiterock to acquire ten additional rental properties in 2012.” ~ Joseph Hobbs

To learn how you can benefit from Whiterock’s experience and rock-solid integrity, go to WhiteRockCapitalinc.com or call 877-228-6060.

WhiteRock Capital Creates Wealth, pg. 31

Local Company Goes Global, pg. 38

Page 23: Realty411 part2

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through refinance closing, generating a re-turn of 36%. If the refinance took the entire note term of 90 days to close, the total prof-it would be $4,000 plus three payments of $2,000 totaling 10,000, which calculates to a 20% return. Therefore, our investor lend-ing program makes our investors’ money work harder, generating between 20% to 32% returns. Get educated and learn ways to make your money work hard for you by earning higher returns than the traditional savings and certificate of deposits.

sell her eBAY shares twice per week she will earn $2,000 per week; $2,000 twice per week for four weeks produces $8,000 per month in income. Instead of blindly placing her profit from her real estate sales in a mutual fund, Maureen is earning fast, sexy money trading stocks.

Some of the advantage of trading stocks online are no closing costs, no attorney fees, and no credit checks. When you buy and sell the right stocks in a volatile mar-ket, the profits are fast, sexy and fun.

Again, Maureen is a volatility trader, not a day trader. She earns big profits from changes in a stock price without having to stare at a computer screen all day. How is this all possible? Maureen has a financial education and understands that stock pric-es rarely remain the same throughout the day. They are constantly changing. The rapid changes in a stocks price is called volatility.

Financial freedom is about having and enjoying income from multiple streams.

Isn’t it time you added stock market trading to your list of revenue streams?

When Hollywood actors and Silicon Val-ley executives want to increase their wealth, they turn to Tyrone Jackson. He’s the founder and creator of the Wealthy Investor program. Each month, Jackson teaches beginners and seasoned stock market investors how to produce monthly income ranging from $5,000 to $30,000. He’s also the creator of The Wealthy In-vestor’s Guide to Stock Market audio CD series. Visit www.TheWealthyInvestor.net for details. A frequent radio and TV guest, Jackson has been seen on CNN/FN and NBC’s The Other Half. Send us your feed-back on this month’s column. We’d love to hear from you, email us at: feedback@the wealthyinvestor.net

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Realty411Guide.com PAGE 46 • 2012 reWEALTHmag.com

Investing VS Buying, pg. 41

How Hard is Your Money Working, pg. 44

Page 24: Realty411 part2

ALL -ENCOMPASSING REAL ESTATE INVESTMENT SOURCE

Dallas, Phoenix, Las Vegas, Indianapolis,

Memphis, Rochester, Houston, Tampa,

Chicago, Cleveland, Seattle, Sacramento,

St. Louis, Kansas City, Atlanta, Charlotte

CURRENT FEATURED CITIES:

FEATURED PROPERTY:

The BottomLine:

We provide everything you need!We provide you the education, research, maps, data, tools,

opportunities, process, due diligence checklists, and contacts, along with personal, financial, and asset portfolio

tracking and analysis to help you choose the right income-producing assets to add to your portfolio.

Zero Down DealÉ4 BRÉ2.5 BathsÉFully RehabbedÉTenants in PlaceÉHuge EquityÉPositive Cash Flow!

www. .net

¥ Turn Key (Renovated & Rented) Real Estate Investments Nationwide¥ Discounted & Wholesale Prices Providing Built-In Equity¥ Capitalization Rates of 10-20%¥ Zero Down Deals with Positive Cash Flow(Financing Qualifications Apply)¥ Seller/Owner Financed Investment Deals(No Financing Qualifications)¥ Up to 3 Years Home Warranty¥ Guarantee Rent Program Up to 18 Months¥ Invest & Leverage Your IRA

Market Data

The Way to Unlocking Your Financial Freedomthrough

360º Degrees

At a time when a plethora of options and

strategies are flooding the real estate investment

arena, provides extensive research and a

wide gamut of resources, combined with cutting

edge tools and technology, to enable its clients to

become educated investors and make informed

decisions. Our comprehensive real estate

investment listing service allows vendors of turn

key investment opportunities to upload their

deals directly into our online system which allows

investors to pick & choose the right investments

that best suit their objectives, goals and needs.

Investment Opportunities

ROLODEX CONTACTS

¥ Attorneys ¥ Escrow ¥ Title¥ Insurance¥ Warranty¥ Closing Agents¥ General Contractors¥ Retirement Specialists

¥ Wholesalers¥ Rehabbers¥ Property Inspectors¥ Appraisers¥ Property Management¥ Mortgage Professionals¥ Real Estate Agents/Brokers¥ Accountants

¥ Economic Indicators¥ Segmented Maps¥ Quarterly & Yearly Appreciation/ Depreciation¥ Population Growth & Trends¥ Recent/Future Job & Growth¥ Demographics¥ Vacancy Rates¥ Property Tax Rankings¥ Safety/Crime Rates¥ Number of Foreclosures¥ Unemployment Rates¥ Median Home Price¥ Median Tax Amount¥ Cost of Living¥ Affordability Factor¥ Median Mortgage Payment¥ Percentage of Rentals¥ Percentage of Owner Occupied¥ Number of Businesses¥ Section 8 Market Rents¥ Median Income¥ Registered Offenders¥ Best School Districts

Page 25: Realty411 part2