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Declare $uccessin 2011Make All of Your Goals Materialize!

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

(614) 323-3739 • [email protected] • www.realestatedone4u.com

Fully Rehabbed, Currently Rented and CashflowingStart with a major metropolitan area like Indianapolis, Indiana which Forbes named #3 in their “America’s Best Bang for Buck Cities.” Add a thriving corps of businesses and universities whose workers need affordable housing and you have a climate ripe for generating substantial returns on rental properties. We acquire the home, complete necessary rehab to yield top rents, then use our over 15 years of property management experience and branded community positioning to keep it rented and in good repair providing positive cash flow.

• Complete turn-key solution: property acquisition, rehab, management, and property disposal.

• Over 15 years property management experience.

• Indianapolis is the State Capital and home to companies like State Farm and Eli Lilly, the Indy 500 and Superbowl 2012.

• Gross rents 13-15% consistently. Our clients experience positive cashflow using 15 year mortgages and use as college tuition solution.

• Specializing in IRA/Roth IRA cash flowing properties producing monthly income for investors.

• We are looking for like-minded entrepreneurial investors.

• #1 Provider for ‘Turn-Key & Tax-Free’ Incomeby RothIraRealEstate.com

“This is my solution for growing my IRA consistently. I have known the team at Realestatedone4u for 10 years and they deliver exactly what they say they will. My son is now in the process of buying his first investment property through Realestatedone4u.”

Mike KColumbus, Ohio

“My wife and I simply cannot afford another ten years like the past ten years. It was time to take control of our retirement. We are in our fifties and we needed to stop making excuses and start making wise investment decisions. Realestatedone4u has done just that!”

Tom AIndianapolis, IN

“A professional team that under-stands the investor, because they (and their families) own the same properties I do!”

Steve NChicago, IL

New for 2011Brand New Construction 4/2/2s - Renters In Place

Contact for details!

NATIONAL REAL ESTATEINSURANCE GROUP, LLC

-The Million Dollar-

Sweet SPOTby Kathy Fettke

It’s no secret that banks w o u l d rather buy Treasuries

today than lend to homeowners or investors. Why not? They can bor-row interest-free from the govern-ment and then turn around and “lend” back to the government for a profit. It sounds like another illegal scam that will ultimately hit the American taxpayer — a pretty common story these days.

We can get mad or we can get even. Either way, if we want to protect ourselves and our chil-dren, we have to learn to play their game. Since financing availability is tighter than ever, that leaves us a huge opportu-nity to get great deals.

The sweet spot right now is with properties that are out of the average investor’s reach but too small for hedge fund investors. There is just not a market for $1 million to $10 million deals. Distressed prop-erties in this range are heavily discounted, giving huge returns for those who can manage to acquire them.

At Real Wealth Network, we have over 6,000 members so deals come across our desk all day long. This gives us the abil-ity to cherry-pick the best ones. For example, we were told about 27 almost-finished wa-terfront townhouse in Portland in the highly desirable Pearl District. The construction bank failed so the developer couldn’t finish the work. The FDIC took over the $12.8 million note. We

first offered $8 mil-lion but were denied. Six months later we offered $3 million and it was accepted. We syndicated this proj-ect into 60 shares of $50,000 each and were able to purchase the property at auction — which eliminated liens and liability. Profits are

expected to be quite astound-ing since the town homes only need finishing work and con-tracts are already in place for end-buyers.

While we’re still finding in-credible deals in single-family homes around the country, we’re seeing the steepest dis-counts in the larger units that most individual investors can’t afford. Apartment buildings in Texas are another sweet spot that we are aggressively target-ing now.

If you’re tired of making mul-tiple offers and competing with hundreds of other investors, consider joining our network (it’s free) and team up with us on the big stuff that has higher discounts and less competition. You can also download your free report on “7 Steps for New Real Estate Investors” on our main page: www.RealWealthNetwork.comKathy Fettke is the host of theReal Wealth Show, Saturday mornings at 10 to 11 on 1220 AM KDOW. For information, contact: 925-280-2830 or 888-RWNETWORK (796-3896) or [email protected] DRE License # 01509755Real Wealth Network has ex-panded with offices now in Malibu & Walnut Creek, CA.

(614) 323-3739 • [email protected] • www.realestatedone4u.com

Fully Rehabbed, Currently Rented and CashflowingStart with a major metropolitan area like Indianapolis, Indiana which Forbes named #3 in their “America’s Best Bang for Buck Cities.” Add a thriving corps of businesses and universities whose workers need affordable housing and you have a climate ripe for generating substantial returns on rental properties. We acquire the home, complete necessary rehab to yield top rents, then use our over 15 years of property management experience and branded community positioning to keep it rented and in good repair providing positive cash flow.

• Complete turn-key solution: property acquisition, rehab, management, and property disposal.

• Over 15 years property management experience.

• Indianapolis is the State Capital and home to companies like State Farm and Eli Lilly, the Indy 500 and Superbowl 2012.

• Gross rents 13-15% consistently. Our clients experience positive cashflow using 15 year mortgages and use as college tuition solution.

• Specializing in IRA/Roth IRA cash flowing properties producing monthly income for investors.

• We are looking for like-minded entrepreneurial investors.

• #1 Provider for ‘Turn-Key & Tax-Free’ Incomeby RothIraRealEstate.com

“This is my solution for growing my IRA consistently. I have known the team at Realestatedone4u for 10 years and they deliver exactly what they say they will. My son is now in the process of buying his first investment property through Realestatedone4u.”

Mike KColumbus, Ohio

“My wife and I simply cannot afford another ten years like the past ten years. It was time to take control of our retirement. We are in our fifties and we needed to stop making excuses and start making wise investment decisions. Realestatedone4u has done just that!”

Tom AIndianapolis, IN

“A professional team that under-stands the investor, because they (and their families) own the same properties I do!”

Steve NChicago, IL

New for 2011Brand New Construction 4/2/2s - Renters In Place

Contact for details!

Realty411Guide.com PAGE 5 • 2011 reWEALTHmag.com

How to Get the

by Kathy Fettke

Trying to get a good deal

in today’s market can be frustrat-ing. It might mean making a hundred offers before you get the one that makes sense. And even if you have cash and will close “as is,” you still might lose out. Or you might end up with the property and fi nd out later you paid too much or got stuck with a lemon.

So how are the experienced investors getting deals with less effort? At Real Wealth Net-work, we have found the power of numbers. Our teams buy in bulk directly from the bank. The banks love this because they can move more property at once, even if it means slash-ing prices. In most cases, the properties never make it to the open market before we’ve hand-picked our favorites. It’s tough for an individual to com-pete with a bulk purchase.

We also pool funds to pick up almost-complete subdivi-sions or multi-family proper-ties. Again, this is tough for the

Bigger Better Dealindividual investor because the price tags are much higher, but the deals are sweeter. For example, we just wrote down a $12.9 million FDIC loan to $3 million on 27 al-

most-fi nished water-front con-dos in Portland. Investors will make over 40% in one year.

This is truly the greatest wealth transfer in history. Op-portunities abound, and to-gether we can make it happen. Mistakes happen when inexpe-rienced people jump into some-thing they don’t understand. That’s why so much wealth has been lost over the past decade. You don’t have to go it alone, learn from the experts.

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

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

Real Estate Investors Store

Why The Real Estate Investors Store?Chances are you've thought about ways to make more money. Your job isn't covering all of those expenses nor is it getting you to those dreams you have of paying your kids college education, traveling and building a bigger and better home or simply retiring in the style to which you always have imagined.

Ways to make money through investing!What we can o�er you:A chance to place yourself at the forefront of a giant wave of opportunity in real estate investing, sweeping across America and make an unbelievable income! One of the nation's most sought a�er real estate experts , Fred Tingley, will give you the motivation and his unique perspective on how to get started.

Who is Fred Tingley?Dr. Frederick Tingley has been an investor for 30 years and acoach for the last 15 years . Dr. Tingley is wiling to take on students on an individual basis.

For more info call: 801-294-7015visit: RealEstateInvestorsStore.com

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the person dreams about. For instance this thinking can be

about what is the purpose of coming to this world? What can I give to this world and what best can I do for people? And questions like these can help you drive your vision or dream which you want to fulfill.

One could learn about its strength and weaknesses by searching his personal history in the past in which he has a number of experiences that caused him difficulties and obstacles in his way of success. From these past experiences the person could learn not to repeat his mis-takes in the future and to use his weak-nesses as his strength.

This is the common thinking of ev-ery person that looks into his past and gets out his mistakes, but one thing that differentiates an entrepreneur is that he

by Dave Lindahl

Continued on pg. 46

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Realty411

Realty411 and Real Estate Wealth magazines are published in Los Angeles by Manifest Media Partners (mailing address: 4221 Neosho Ave., Los Angeles, CA 90066). Publishers are not re-sponsible for unsolicited manuscripts, photographs and/or other materials. ©Copyright 2010. All Rights Reserved. Reproduction without permission is strictly prohibited. The opinions expressed by writers are not endorsed by the publishers and/or editorial staff. Before investing in real estate, seek the advisement of a trusted fi-nancial adviser, attorney or tax consultant. Real estate investing is risky and may result in loss of capital. Please invest responsibly.PRINTED IN THE USA. GOD BLESS AMERICA

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Having a positive approach for the future and thinking optimistically is the right way for achieving your dreams...

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Published for Investors by Investors

There is a common belief that only few people that have the desired attributes can be entrepreneurs, but this is not true. Entrepreneur-

ship is for everyone and there are numerous reasons for supporting this statement.

The first and the foremost reason in this regard is that everyone has a dream which

they want to fulfill or at least have a desire to improve their quality of living. This per-ception of human beings leads to encour-agement for working hard and getting what they want, this perception is commonly known as intuition. It is a kind of poten-tial in human beings that leads to creative imagination.

Human beings are the best creation of God that is given the power of creative thinking and through this thinking they are able to do a lot of creative tasks. This cre-ative thinking can be from the past, present and future and can relate to anything which


Take Advantage of Massive Tax DeductionsInvest in the Go Zone, Before It’s to Late...

After six years of Go Zone initiatives sanc-tioned by the federal

government, the oppor-tunity to turn taxes into cash-flowing equities will soon come to an end.

Individuals seek-ing tax relief and an opportunity to increase their real estate portfolios will need to hurry as one of the greatest tax-saving pro-grams of all time will be expir-ing this year.

To make sure we provide readers with the latest news on the Go Zone, we recently inter-viewed Brett T. Immel, a part-ner with Hanover Companies LLC, the leader in Go Zone op-portunities.

Since 1969, the principals of Hanover have been assist-ing clients in creating wealth through real estate as investors, fund advisors, property manag-ers and developers. Read on to learn how to take advantage of the Go Zone, before it’s to late.

Question: Why is Hanover concentrating all their efforts in the Go Zone right now? Immel: The Go Zone is actually the Gulf Opportunity Zone and was created by legislation, to provide certain tax advantages to companies and individuals willing to invest in the rebuild-ing of the qualified tri-state area most affected by Hurricane Ka-trina.

Mississippi is the last state in which this special tax incentive is available. The incentive itself (including Mississippi) will end soon. Hanover has been con-centrating in the Go Zone for a

number of reasons: (i) Timing; Go Zone tax incentives end December 31, 2011, so there

is a short window to take advantage of this tax opportunity, (ii) The general economy of the greater Biloxi

(Go Zone) area is growing quickly because of the Go Zone incen-

tives and the real es-tate market are strong because

of the area’s growth.

Q: They say, “Time is of the essence,” but the Go Zone Opportunity really is time sensitive, please explain.Immel: The Go Zone ends December 31, 2011, therefore property that is Go Zone eligi-ble, new construction/first use, has to be placed in service and closed by the investor before the end of the year. Most clients are utilizing bank financing and turn times with lenders are on average 45 plus days. Because of the time limitation, it’s im-portant to make a quick deci-sion and not delay the process.

Q: Besides the tax benefits available, this area in Missis-sippi is experiencing consid-erable growth. What factors have contributed to its surge in population? Immel: Biloxi, Mississippi, has seen considerable growth and many sectors of the market have contributed. Jobs, jobs, jobs is all that we see and it has a di-rect affect on real estate. When Hurricane Katrina hit in 2005, it wiped out about 20 percent of the housing sector when other markets saw overbuilding and excessive supply. Markets like

NOTICE

CALL NOW877-373-2805

Your time to qualify for one of the largest real estate tax incentives in U.S. history is almost up. If you would like to turn federal income taxes that you’ve already paid over the last 5 years into equity in the nations top emerging market, contact us imme-diately.diately. The deadline for incentives is 12/31/2010. Inventory is limited.

INVESTMENT GOALS AND TAX LIABILITIES DIFFER FOR EVERYONE. GO ZONE IN-CENTIVES AND DEDUCTIONS MAY DIFFER IN TERMS OF GO ZONE QUALIFICA-TIONS. WE MAKE NO REPRESENTATION AS TO AN INDIVIDUAL OR PROPERTIES ELI-GIBILITY TO RECEIVE GO ZONE BONUS DEPRECIATION AND/OR INCENTIVES. YOU MUST CONSULT A TAX PROFESSIONAL TO ENSURE YOUR ELIGIBILITY FOR GO ZONE BONUS TAX DEDUCTIONS OR OTHER INCENTIVES.

Positive cash flowRated #1 Emerging market

NOTICE

CALL NOW877-373-2805




NOTICE

CALL NOW877-373-2805




NOTICE

CALL NOW877-373-2805




NOTICE

CALL NOW877-373-2805

Positive Cash FlowRated #1 Emerging Market

Your time to qualify for one of the largest real estate tax incentives in U.S. history is almost up. If you would like to turn federal income taxes that you’ve already paid over the last 5 years into equity in the nation’s top emerging market, contact us immedi-ately. The deadline for incentives is quick-ly approaching. Inventory is limited.

INVESTMENT GOALS AND TAX LIABILITIES DIFFER FOR EVERYONE. GO ZONE INCENTIVES AND DEDUCTIONS MAY DIFFER. IN TERMS OF GO ZONE QUALIFICATIONS, WE MAKE NO REPRESENTA-TION AS TO AN INDIVIDUAL’S OR PROPERTIES’ ELIGIBILITY TO RECEIVE GO ZONE BONUS DEPRE-CIATION AND/OR INCENTIVES. YOU MUST CONSULT A TAX PROFESSIONAL TO ENSURE YOUR ELIGIBILITY FOR GO ZONE BONUS TAX DEDUCTIONS OR OTHER INCENTIVES.


National Real Estate Insurance Group/Affinity Group Manage-ment has had a unique approach

to meeting their clients’ insurance needs since 1999, and it’s paying off for them.

Their program allows people to pay month-to-month for the coverage they need, giving them the ability to change their plan to meet unique insurance needs as they come up. “We have the right cov-erage at the right time with a one-minute email to us to change, as needed,” says owner Mike Wrenn.

NREIG/AGM currently represents over 1,500 people and is adding approximately 80 more a month; by 2012 they will have over 2,500 clients. The company consid-ers their rates competitive and claims the stability of their program over the last ten years to be one of their greatest strengths.

Investors can choose different deduct-ibles and plans utilizing actual cash value or replacement cost, depending on their needs.

“The method we use to manage the in-ventories for our insureds, their payment terms and the right coverages account for our success today,” Wrenn explains.

NREIG/AGM insures in all 50 states and can easily follow their customers if they move. The company has IT systems that track each location and can account for es-crowed payments by mortgage companies during the year. Clients can pay through credit cards and are not charged for cover-age the month a property may be deleted; NREIG/AGM is therefore ideal for larger

buy-and-hold investors and fix-and-flip in-vestors.

NREIG/AGM is perhaps so uniquely de-signed and suited to meet their customers’ needs because Wrenn and another of the company’s owners, Tim Norris, are prop-erty investors themselves.

“We know the market countrywide be-cause we have professionals we insure who make their living off of their local invest-ments. We can access information about various areas of most urban cities today through local knowledge,” Wrenn says. He adds: “As an example, there are unique features to the Kansas City and Memphis markets that only locals know as it pertains to crime and safety of the property in more inner-city locations. When we need help understanding local conditions from street to street in certain cities, we know where to get it.”

Besides relying on their local contacts, NREIG/AGM is actively involved with many real estate groups around the country. “We attend over twenty Real Estate Invest-ment Association (REIA) chapter meet-ings,” Wrenn says.

To that end, NREIG/AGM is planning to incorporate video correspondence with their clients late next year. Soon customers will also be able to manage accounts online so that they will not be dependent on com-municating with representatives during business hours. — by Brianna Bertrand

For additional information, please visit: www.nreinsurance.com

National Real Estate Insurance Group & Affinity Group

Management Combine Forces

Miami and New York City currently have so much existing supply that absorption levels are five years plus, meaning it will take over five years for this inventory to be sold. This is not the case in Biloxi.

Thirty-five percent of the market is made up of government-related jobs, mainly be-cause of Keesler Air Force Base. Keesler had a $1.1 billion economic impact on Biloxi’s population of 250,000.

Buying real estate close to a military base is never a bad idea because as log as the base is active, there will always be consis-tent government funding and jobs being created. Tourism provides another thirty

percent of the market, mainly because of the casinos.

Biloxi is the second largest casino market with over fifteen land-based casinos (in-cluding the Hard Rock and Beau Rivage) and more planned for the future. Casino revenue is up for 2010 and the occupancy of the casinos has been very high.

In addition to these two driving forces, there are many corporations in the area that contribute to job growth, including North-throp Grumman, Seaman Composites, Rolls Royce and many others.

Lastly, in July 2009 Biloxi-Gulfport re-ceived approval for expansion of the box and container port to essentially make it the largest box and container port in the U.S. This is because of Biloxi-Gulfport’s cen-tral location in the U.S. and the expansion of the Panama Canal (set to be complete in 2014). Bloomberg recently released a report that Mississippi would see housing prices increase 16% by 2014 and Biloxi-Gulfport would be the market with the highest increase in prices.

The bottom line is that the market is strong and stable. Low unemployment and a consistent need for housing will contin-ue to grow this market for many years to come.

— by Brianna Bertrand

For more information about the Go Zone, please contact Hanover Companies, LLC: 877-373-2805.Realty411Guide.com PAGE 9 • 2011 reWEALTHmag.com

by Richard Barrett

What would you pay to know where property values will grow in the next decade? How

much would a real estate “crystal ball” be worth to you? What if you had the “secret formula” to find areas of growth?

Well, you are in luck today, I am giv-ing away this secret formula for free! The secret formula for growth in real estate val-ues is…(drum roll, please…)

jobs > people > property

That’s right, the secret formula is sur-prisingly simple. Jobs attract people, and people need places to live. A growing job market brings more people, and people drive rental prices and real estate values. It’s so simple that many experts will deny this formula, arguing for special circum-stances of their particular investing loca-tion. But, for the vast middle market of real estate, this simple relationship drives long-term growth in rental prices and real estate values. Let’s explore this relation-ship in detail.

Jobs Attract PeopleJobs attract people. As a simple state-

ment, that seems pretty obvious. But, let’s test that statement, using the major metro area of Houston, Texas, as one example. The unemployment rate of the Houston metro area is 7.4%, almost 25% below the national average.

In the past ten years, Houston has seen growth of 270,000 new jobs. By compari-son, each of Los Angeles, San Francisco, and Chicago have lost 100,000 jobs in the past ten years. In Houston unemployment is down and job growth is up. Over the past five years (June 2005 - June 2010) Hous-ton has ranked #1 in job growth, adding 129,000 jobs. In contrast, over the same period, Los Angeles lost 376,000 jobs, Detroit lost 329,000 jobs and Chicago lost 253,000 jobs.

Houston is the sixth largest city in the country, with a population in the metro area of 5.8 million people. Over the past ten years its population has grown by 24%, the third fastest growth in the top ten cities, behind only Dallas-Ft. Worth and Atlanta.

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

Print • Online • Network

Special3 YEAR

Anniversary Issue!

DAN REEDY

The Owner of MOREKC.comHelps Investors from Around the World Grow their Portfolio

in Kansas City, Missouri!

Welcomes You to America’s Heartland

Look for

More Real

Estate Trips

in 2011


Sixty years later, the job market has collapsed with the demise of the auto industry, over 50% of the people have moved away, out migration continues at a rate of 3,000 per month. Entire city blocks of houses stand empty and the city plans to bulldoze square miles of houses. The long-term, growth prospects for real estate in Detroit are weak until the city can restart job growth and reduce its housing stock to something nearer actual demand.

The RBS Investor IndexTo identify good metro areas for its in-

vestors, RBS Homes has developed the RBS Investor Index.

This index combines over thirty eco-nomic and demographic metrics to identify metro areas which will generate strong, long-term growth over the next decade. For each of the top 500 major metropoli-tan areas (MSA’s), the RBS Investor Index tracks changes in job formation, unemploy-ment, population, average income, housing prices and housing stock.

I’d be delighted to discuss housing price trends with you and to explore the trends for your own favorite metro area. You can

reach me at:925-858-9017 or [email protected]

Happy Investing,Richard BarrettRBS Homeshttp://www.rbshomes.com

So, it appears that job growth encourages population growth.

People Drive Real Estate ValuesThe purpose of residential property is

to provide places for people to live. More people need more places to live. Growth in Houston property values has been 19%, 48%, and 106% for the past five, ten, and twenty years respectively. The decline from the all-time high—the bubble drop—has been only 0.73% in Houston. Compare this to drops of 20-50% for properties in Phoenix, Los Angeles, Las Vegas, Miami, and other metro areas that suffered from the boom/bust of the recent bubble.

Demand for residential property depends upon not only the number of people in the area, but also upon the housing supply. Vacancy rates measures the demand for housing—the relative balance between people and housing. Inflation rates drive the housing price, as does the cost of lo-cal government. Also, the property type—single family, 1 to 4 multiple unit, or large apartment—significantly affects the prop-erty value curve. So be careful in using these metrics.

Losing Population & Real Estate ValueDetroit is perhaps the poster child of how

the jobs > people > property formula works in reverse. Sixty years ago, Detroit was known as Motor City, king of the auto world and even king of the MoTown sound. The Detroit metro area had a population of 1.8 million in 1950, a strong job market, and a strong housing market.

They came from Kansas City, Baton Rouge, Los Angeles and Indianapolis to Mem-phis, Tenn. Investors from a distance mingled with local wholesalers, agents

and brokers. All were there to spend three days learning from one of the most success-ful families in the real estate industry, the Clothiers. “We’re going to pull back the curtains and reveal all of our secrets,” Kent Clothier Sr. said — that was enough to prompt me to return to Memphis only one month after my initial visit.

The Cash Flow Pros’ “REI Edge” three- day event, hosted by Kent Sr. and his sons Chris, Brett and Kent, covered every gamut of the real estate industry imaginable. From property management, customer service, private money and marketing, no stone was left unturned.

Kent Sr. revealed that they were in the process of developing educational products and the event offered a perfect opportunity for them to fine tune their programs.

The room of about 50 real estate investors and industry professional was initially led by Kent Sr. who has purchased, renovated and sold thousands of properties around the country. It was his idea to round his sons to-gether in Memphis to take advantage of the phenomenal buyer’s market in Tennessee. Together the Clothiers have been involved in diverse real estate markets, including Texas, Colorado and Florida.

What drove them to the Memphis market is exactly what drives Californians to buy 2,000 miles away from home: Cash flow.

REI Edge: The Cash Flow Pros Reveal Their Secrets

At the Cash Flow Pros event, which was videotaped to be the blueprint for their new educational company REI Edge, each Clothier spoke about the unique talents they bring to the company.

Kent Sr. taught the group his secrets in property management, customer service and rehabbing. Chris revealed tons of mar-keting secrets and tips for acquiring private lending. Kent, who lives in Florida, moti-vated the audience and sprung them into action.

The event was opened up to anyone who was interested. Friendly competitors from other markets eagerly attended. In the room

was one of their own local competitors who also caters to long-distance landlords.

One of the most helpful tips given to us by Chris Clothier for dealing with today’s tough lending industry was the compilation of “The Bank Book.”

This Clothier secret weapon provides an organized and effective way of presenting their company’s information to a banker when trying to procure a loan.

“The Bank Book puts me in front of the pack,” Chris said, adding: “I have used this as a great ice breaker.”

Chris said his book contains a mission statement, an executive summary and an introduction to his professional team, even before the financials are presented. The key is to present your organization as the best company in town, one that they should want to be doing business with.

Another key issue touched upon during this informative weekend was sales, some-thing the Clothiers know a lot about. In fact, they consistently sell over 200 proper-ties annually.

Chris says that in order to remain suc-cessful, they focus 80% of their time on building a buyer’s list. Some of their other secrets for their incredible sales volumes are creating “call-to-action” marketing pieces, which ignite prospects to reach out. “You are always marketing yourself, it never stops,” Chris admits.

Once an investor becomes a client, the Clothiers say they will be repeat custom-ers and refer others as well because of their philosophy of “over performing and giving clients more than what they expect.”

Eric Hobbs and his wife listened intently while the Clothiers spoke. Normally they are employed by the Clothiers as leasing agents, but today they consider themselves their students.

“The information they are giving is great,” he enthusiastically said. When questioned about why he took three days away from his tenant placement business, the novice wholesaler replied with a smile, “I want to learn from the best in the busi-ness and that’s why I am here.” >

On Location in Memphis


The Clothiers, from left to right: Brett, Kent, Chris and Kent Sr.

the Cash Flow Pros share their Secrets

at their REI EDGE Event

by Linda Pliagas

MemphisInvest.com’s Spring Schedule 2011

Join the Clothier family at their property buying events around the country. Come learn how to cash flow in one of the hottest markets in the country, Memphis, TN.

Jan 13, 2011 - St. Louis, MOMarriott St. Louis West660 Maryville Centre Drive 5:30 pm to 9 pmJan 29, 2011 - San Jose, CADoubletree 2050 Gateway Pl. 8 am to 5 pmFeb 17, 2011 - Santa Ana, CADoubletree 201 E. McArthur Blvd. 8 am to 5 pmFeb 19, 2011 -Los Angeles, CAEmbassy Suites9801 Airport Blvd. 8 am to 5 pmMarch 12, 2011 - Orlando, FLOrlando Peabody April 29 & 30, 2011 - Memphis, TNMemphis Hilton 939 Ridge Lake Blvd., Memphis, TN 38120

For more information, please contact: (901) 751-7191 or MemphisInvest.com

Property Management & Customer Service: The Foundation for Success

Although MemphisInvest.com now consistently sell 20 homes on a monthly basis, mostly through referrals, it took years of learning tough lessons for them to attain that level of volume.

“We were not successful at property management at first,” admits Kent Sr. He adds: “We lost a lot of money on this side of the business, but we’ve come a long way in six years.”

When the Clothiers started assisting out-of-state investors years back they only sold the rental homes, they did not have contact with the investors after-wards. Kent Sr. is the first to admit that it didn’t go so well. Customers were not happy, repairs were costly, the manage-ment was in chaos.

One of the ways that the Clothiers cre-ated an improved system of management is by bringing that aspect of the business in-house so they have control over the properties that their investors purchase.

The mindset of MemphisInvest.com from simply selling rentals was trans-formed into one where “the house is just merely a bi-product.”

Kent Sr. explains: “It’s all about the investors. It’s all about the client. Our character, our integrity and our honesty are on the line.”

Since they zeroed in on property man-agement and on “exceptional customer service” their sales have skyrocketed. In fact, most of their existing business is generated by repeat customers (the aver-age investor buys four rentals) and refer-rals from current investors.

Kent Sr. realized a tough lesson early on: “Without the investors being happy, there are no jobs in our company.” Now MemphisInvest.com takes a proactive approach. “Our goal is that the investor will never have to call our office.”

To make sure the investors are kept up-to-date, their management staff call about sixty investors per week with a re-port on their property.

Again Kent Sr. reiterated that they turned a chaotic situation into a positive one by merely shifting their focus from properties to people.

“If you don’t have outstanding cus-tomer service, then you won’t have a business for long.”

Take Action Now

After hearing three days of fantastic tips and information from one of the nation’s top brokerages that services out-of-state investors, the participants were ready to return home and imple-ment their newfound knowledge.

To make sure that our mindset was right, the Clothiers asked audience members to volunteer and address the room. They wanted to know how we would implement the information into new goals and ideas.

One gentleman from Louisiana ad-dressed the room. He admitted that he wasn’t doing enough networking in his farm area of Baton Rouge.

Another investor also took home a tip or two. “The biggest lesson I learned at this event is the amount of offers I need to make every month,” said Andy Ono, an investor and whole-saler from Kansas City. Ono was also very pleased with all the information he learned on property management.

While it’s easy for investors to make a list of goals while at an event, the dif-ficult part is transferring that positive energy into action.

Kent Clothier knows this all to well. The developer of the 1-800-SELL NOW vanity number and the FindCashBuyersNow.com marketing system, didn’t pretend to have a magic formula for success. No pill or spell can take the place of good ol’ fashion hard work.

“If you want big things to happen, you have to do big things. This ain’t practice, this is the game,” he said in a matter-of-fact tone. “While you are sitting around thinking, someone else is already doing it. Either you act on it or get out the way.”

The audience was quiet, the pressure was on as Kent continued his closing. “Ninety percent of the people will not act, I challenge you to not be one of them.” It was time for students of the Clothier real estate academy to create their own success stories.

Sensing that the students were feel-ing a little overwhelmed and skittish, Kent Clothier lessened the intensity by smiling and giving us one last piece of friendly advice to chew on: “Don’t set out to build that wall all at once, just lay one brick at a time.”

on Baltic AvenueMONOPOLY

by Lori Greymont

Remember playing Mo-nopoly and anxiously waiting to get that third

property of the same color so you could double your rent? What if you had the oppor-tunity in real life to purchase three, six, twelve properties at a time and start collecting on all of them? The phenomenon of massive numbers of bank-owned properties hitting the market means you can make

just this kind of bulk purchase (bulk REOs in real estate par-lance). Bulk REO packages provide 10 to 15 homes (nation-wide) sold together for bargain basement prices. By investing in bulk REOs, an individual can quickly acquire a portfolio of properties that will produce cash flow for years to come. These homes are not in the high rent Park Places of the world, but in the working class Baltic Avenue-type neighborhoods—one reason there is a low cost of entry.

How low? You can get in the game for as little as $100,000 for a small portfolio of cash-flowing properties or as little as $200,000 for 20 plus prop-

erties ready to be turned into cash-flowing, wealth-building engines.

The first premise of this strategy is that there still is a market for homeownership that is underserved: working class people who make enough to cover rent, but can’t get a bank loan.

Working class people are willing to buy houses and are willing to make repairs — at

the right price. That price is equivalent to rent. It makes sense. Let’s say the average rent in an area is $450. Offer a working person a privately financed home for $450 or less per month and they’ll take the deal. And they’ll make the pay-ments because they already have a history of making rental payments. These loans are de-signed to succeed, not doomed to fail.

The second premise of this strategy for investors is that a right-sized, cash-flowing loan at 9.5% over 15 years is a good investment. Purchasing a cash-flowing loan at a discount is an even better deal.

Bulk REO purchases put these premises into action. An active investor will purchase 10 plus houses and then resell them to owner-occupants with

By investing in bulk REOs, an individual can quickly acquire a portfolio of properties that will produce cash flow for years to come.

Continued on pg. 35Realty411Guide.com PAGE 15 • 2011 reWEALTHmag.com

How’s Life?by Sam Sadat, founder of Los Angeles Real Estate Investors Club


We are always asking each other, “How’s life?” The same person might reply that life is great on

one day and then complain that life is terri-ble on the next. Is this variation really a re-flection of the changing nature of existence or is it a function of human interpretation? I believe it’s the latter and here’s why.

Life simply does what it’s supposed to. It flows with no judgment, vendetta or favor-itism. It’s neither good nor bad; it is imper-sonal. Life simply serves up the events you manifest. So don’t blame “life” for the bad things that happen to you. Existence doesn’t create the events in your life, YOU DO. If you don’t like what you’re getting, change your thoughts, words and deeds. Take re-sponsibility, existence will respond.

Many people make the mistake of ap-proaching life as if it is the enemy. They drive themselves crazy resisting what life brings and learning nothing. You can curse life all you want, but life is innocent of all charges. Life doesn’t even register your complaints! Life is, after all, profoundly neutral and just, which is good. You want a better life? Begin by changing your per-spective. Try to see things differently. What are you ignoring or assuming that is lim-iting your vision? Take a moment to think about that. Are you belligerently skeptical and hopeless? Or are you open and clear, ready to assess situations without prejudice? Often we don’t really see what’s unfolding before us, instead we see it all through the lenses of our previous conditioning. And then our responses are programmed. We become like robots.

When you choose to change your point of view, a problematic situation is revealed in a new light. Suddenly new solutions pres-ent themselves. They seem so obvious! You wonder how you could have missed them. With this clear vision and with these new solutions, you become a more powerful and capable manifestor.

All the great sages in human history have basically said the same thing in different words: Learn to look at events in a way that makes you stronger. Avoid subscribing to interpretations that draw you down into weak energy patterns. Seek interpretations that strengthen you, that give you a choice.

This is the essential shift that makes the difference between manifesting success rather than failure and abundance rather than scarcity. Never be a victim!

To help you in your quest to shift your paradigm and make a quantum leap, I have developed a quick technique called, “pause and ponder.” By practicing this easy tech-nique, you can become a more potent ob-server.

When something “unpleasant” happens in your life, just pause. Pausing is surpris-ingly powerful. Usually we try to protect ourselves from uncomfortable circum-stances in a reactive, unthinking way. We immediately shut down, lash out or hide away. We don’t think about what we will do, we just do it. Or rather, it “just hap-pens.” Unfortunately, this reactive behav-ior is out of control. It tends to make the situation worse than it really is, which in turn causes more reactive behavior. This results in a negative downward spiral, and the self-fulfilling prophesy of victimhood. You become the victim you think you are.

So remember to pause. Just stop. Sometimes no action is required. Some-

times it’s best to sit back and let things play out a little — give a little space for the natural course of events. By being still and acting only when necessary, many of life’s problems magically solve themselves. Learning to be still is the beginning of real wisdom.

But don’t just pause, that’s not the whole technique. You have to pause and ponder. Ask yourself: How shall I choose to see and process what’s just happened? What light will I see this in? This will prevent you once and for all from blindly reacting to the situation. But most importantly this will give you a chance to gain some perspective and make a smart, positive choice. It will give you the power to change things.

It is a mysterious, mystical truth that seeing things differently actually changes them. No one really understands how this works, but it does. I’m not saying that if you see your Volkswagen as a BMW it will magically become a BMW, you don’t get to choose the exact nature of the change. Rather, through the power of resonance,

events will shift to fit your attitude, your per-spective.

In the immortal words of John Milton, “The mind can make a heaven out of hell or a hell out of heaven.”

Is this starting to sound a little too “out

there” for you? Perhaps this is a good time to mention an unusual discovery that was made in the field of quantum mechanics when the science was in its infancy. It was discovered during the observation of atom-ic particles that the act of observation was itself changing the outcome of the experi-ment. If they changed the method of their observation they observed something dif-ferent. Change the perspective, change the perceived. To put it mildly, this was quite the mystery. Scientists have carefully con-firmed and described this phenomenon, but they still can’t explain it.

Each of us is a powerful, manifesting being, but it is important to remember that we cannot explain everything. This helps us to remain humble and joyous in the face of the great mystery. William Blake said it best in his famous poem, “Auguries of In-nocence”:

To see a World in a Grain of Sand And a Heaven in a Wild Flower, Hold Infinity in the palm of your hand And Eternity in an hour. We must not try to control the world,

only our perspective in it. This way our manifesting becomes like a dance with existence. So now let me ask you: How’s life?

Best Regards,Sam Sadat

PS: I encourage you to associate with posi-tive, creative people and stay away from those who lower your energy or hinder your morale. For this reason we encourage you to come to our monthly real estate meet-ings. When you come to the LAREIC’s monthly meetings, you will not only learn the nuts and bolts of the real estate from the best in business but also get a chance for personal development and self improve-ment, all in one incredible evening. For more information about us, call (800) 998-9930 or visit our websites: www.samREclub.com www.investorfundingresources.com.

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T h e c r u i s e s ’ overall theme is “ A C e l e b r a t i o n of Wealth: Where business meets luxury.” An atmosphere will be created where business networking can take place in a luxurious setting. Guests will have the opportunity to listen to and meet renowned author and columnist Louis Rene Beres, Ph.D., a professor of

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LEVERAGE is a Double-Edged Sword

es”, which, like a double-edged sword, can help you or hurt you. Therefore, although high-est returns on investments can be most desirable, an investor must weigh the risk and rewards carefully. Your goal should be to maximize leveraging power while minimizing risk.

When evaluating and analyzing a prop-erty, it is important to plug in all figures, in-cluding current appraised value (as-is), af-ter repair value (fixed up), average days on market, purchase price, financing options and terms (interest rate, down payment

Leverage is de-f ined as “the use of an ini-

tial investment, credit, or borrowed funds to gain a very high return in relation to one’s in-vestment, to control a much larger invest-

ment, or to reduce one’s own li-ability for any loss.” Leverage is a powerful tool investors use in real estate transactions. Investo-pedia.com states, “Leverage magnifies both gains and loss-

by Crystal Han from 360 Investments®

requirements, loan to value ratios (LTV), pre-payment penalties, and qualifications), approximate closing costs (loan fees, trans-action fees, title, escrow, attorney, transfer tax, document fee), rehab/renovation costs, holding costs (taxes, insurance, payments), income, expenses (property taxes, insur-ance, management fees, and maintenance/repairs) and vacancy factors.

Net operating income (NOI) is calculated by total income minus total expenses. Cash flow is calculated by NOI minus debt ser-vice (mortgage payment). Please note that debt service, also known as the mortgage

“Leverage magnifies both gains and losses,” which, like a double-edged sword, can help you or hurt you.

Continued on pg. 22


LEVERAGE is a Double-Edged Sword

by Brianna Bertrand

Five years ago in September, Dan and Nancy Reedy opened Missouri Real Estate Exchange (MOREKC.com) for business in a 10 x 20 foot

office space with only two phones. Today their office in Grandview, Mo., spans 4,000 square feet, they employ 10 people and another 30 to 50 subcontractors at any given time.

Together, Dan and Nancy own a handful of properties and rentals that they’ve acquired over time. They have a long history in the real estate investing business.

Nancy, for example, grew up with a father who bought distressed farms and land and would rehabilitate and re-sell them for a living. She bought her first investment property at 19. She went on to acquire one of her dad’s farms and subdivide it into estate lots to create her own high-end subdivision in Foristel, MO. She is both a Mis-souri and Kansas real estate broker and owner of MORE Homes LLC and MORE Property Management LLC. >

Cash Flow with Dan in AMERICA’S HEARTLAND

Missouri Real Estate Exchange Helps Investors from Around

the World Invest in Kansas City


My dad always said, “Don’t wait to buy real estate. Buy real estate and wait.”

Owning real estate has always been the foundation of Nancy’s endeavors. She explains: “Real estate gave me the opportunity to quietly build wealth while also receiving income, depreci-ation and tax benefits. I realized at an early age I had a passion for design and started doing specialty painting for myself and friends.”

Soon, Nancy says the word started to spread. “I eventually started my own interior design company called Distinctly Yours. It was a great match as I was already involved in real estate and now could put my touch on people’s homes.”

Nancy says that people don’t realize just how much a little design work and specialty painting can improve the desir-ability of a property. Within a few years, Nancy ended up taking on the consulting and design work for a high-end builder in Kansas City. “They were building new lake front homes from $1 million and up and we were doing the exposed timbers, distressing the hardwoods with hammers and chains and creating really bold color designs. It was a blast.”

The last big project she was involved in before the couple’s start of Missouri Real Estate Exchange was a $1 million-dollar rehab on a huge estate at a country club. The property featured suspended staircases, a wine cellar and it even had a secret door in the library lead-ing to a master bedroom and exercise room.

“Now I concentrate on the proper-ties that we sell to investors, making sure they stand out and appeal to ten-ants or our retail buyers,” she says. One of the ways this is done is by incorporating popular colors with a light staging to give the homes a little more warmth and desirability.

Dan is a life-long resident of Kan-sas City and knows the local market inside and out. In less than five years, Dan has been involved with over 1,000 real estate transactions and 400 rehab projects. Dan also hosts his own radio show, “Real Estate

“No matter where you invest, property management is the key to the kingdom to insure that the investment performs and gives you the profitability necessary to stay in the game.”

Investing for the Regular Guy.”The Reedys’ main focus with

MOREKC.com, however, is keeping enough properties available for inves-tors. Their primary clients are investors from all over the country interested in Kansas City because of low property

prices and the higher-than-usual cash flow the market offers.

The Reedys started working with people from Canada and Australia ear-lier this year as well. Foreign investors

are benefiting from the returns they’re seeing in the U.S., as opposed to the lower amounts they’d see in their own countries. People in New Zealand and Asia have also expressed in-terest in doing business with MOREKC.com.

“The big draw to Kansas City is not just lower prices, [it is] due largely in part to the stability of the market and a higher quality of tenant. The biggest reason investors from all over the globe come to Kansas City now is due to the 100% turn-key product that we provide and the depth and scope of our power team,”

Dan explains. “Right now 70% to 80% of their business are repeats and referrals. “We have always kept the long-term vision in regards to our investors’ properties,” Dan says and ex-plains: “We tend to rehab our rental properties to a retail status with new windows, HVAC, ceramic tile, and most recently, we have been putting granite counter tops in a large number of our rental homes.”

Dan and Nancy have made some fantastic deals with suppliers and it doesn’t cost them much more to go high-end as it does to go cheap. They say the biggest benefit to the higher-end rehab is that properties rent much faster, stay occupied longer and draw a better clientele. This makes for a much more profit-able investment for the investor enabling them to purchase more properties with confidence.

MOREKC.com’s average rehabbed cash flow properties are $30,000 to $40,000, which bring in rents of $600 to $900 per month. The company does offer conventional financing with down payments of 20% to 30%, although it’s tough to attain in today’s climate.

Recently, MOREKC.com has announced that they are now able to finance some of their cashflow properties. The company’s private lender has agreed to do shorter term full amor-tization loans on properties with a larger-than-usual down payment.

The up-front cash flow will be less than a conventional loan, but the properties will be fully paid off in five to 15 years and there are no limits on the number of properties pur-chased. With these shorter term and larger down payment requirements, the underwriting requirements are substantially less rigorous.

“The mortgage industry has all but said, ‘No thanks,’ when it comes to investor financing,” Dan explains. “I have never been a big fan of


Nancy and Dan Reedy

hard money loans as they are so expensive. I finally was able to strike a deal with my private lenders where they will loan up to 70% of acquisition for up to 15 years non-recourse at com-petitive interest rates.”

MOREKC.com’s new pro-gram has very few restrictions and it’s taken off like wildfire. They currently have over 50 properties that qualify for this financing program.

The Reedys are also firm be-lievers that property manage-ment is key to the success of their company.

“We have had inves-tors find better deals on paper, but when their property management company could not per-form their duties, the properties sat vacant and there was no cash flow, those better deals turned into financial night-mares,” Dan says.


MOREKC.com continues to grow and expand all the time, and the Reedys are constantly looking for ways to improve their company.

“The only way we can ac-complish this is with good people and processes and the sense to know that we need to constantly grow, improve and stay current with the market,” Dan says.

“We are always tweaking our processes and looking for ways to improve service to our


A Reedy RehabFrom Ugly to Elegant

Savvy inves-tors always want to buy

the ugliest house in the best neighbor-hood possible and the Reedys are no different. They scour their market for the best deals in the best of areas for their investors around the world. After hundreds of rehabs under their belt, the Reedys are experts at turning run down, ugly houses into elegant homes worthy of exceptional tenants. Would you like to turn a blighted home into a beautiful masterpiece that can consistently cash flow? Please visit MOREKC.com to see the latest opportunities available. Seller financing is now being offered!

Nancy Reedy inspects a new

acquisition that needs a lot of work.

This project is not for

the novice.

Experienced investors like the Reedys know that when a house is renovated just right, it won’t sit vacant long.

investor and tenant base. We just recently hired a fantastic accountant dedicated solely to property management,” he explains and adds: “Our staff consists of five full-time leas-ing agents who are respon-sible for fielding rental calls,

showing properties and getting leases signed, a sales manager who is in charge of marketing the properties, keeping track of appointments and section 8 inspections. Plus, our main-tenance department has three full-time maintenance men that keep our 400 plus units func-tioning 24/7.”

The Reedys have also started a mentoring and training pro-gram for people wanting to learn how to profit in real estate without spending thousands on seminars, tapes and books. Their goal is to educate as many people as possible about the current phenomenal buyer’s market.

“We have always stressed to our local and national buy-ers that this is a small window of time that’s not going to last forever. If you are not actively pursuing real estate investing as a way to build long-term wealth then SHAME ON YOU!” Dan exclaims. For more information, please visit: www.morekc.com


Dan Reedy plays Santa

Dan & Nancy’s partner Jeffrey Lund

“YOU can Be the BANK in Today’s

TIGHT Lending Environment.”

Are You Profiting from the Credit Crunch?

payment is NOT considered an expense and is not included in the NOI calculation. Cash on Cash return (COC) is calculated by cash flow multiplied by 12 (always an-nually) divided by total investment (down payment, out of pocket expenses, and clos-ing costs, if not financed).

Return on Investment (ROI) is COC but also includes the tax benefits of deprecia-tion (paper loss) and principle mortgage re-duction.

The higher the ROI could well mean the higher leveraged you are. A high Loan to Value ratio (LTV) could also mean high

leverage. For example, getting financing at 80% LTV is being more leveraged than at 50%. Therefore, when leveraging, make sure you have a comfortable cushion of POSITIVE cash flow to allow for vacancy, repairs, maintenance and turn over costs.

Also, make sure you have enough equity in case you ever need to liquidate your as-set. 360 Investments™ has created a FREE useful calculation tool, the “Deal Analyz-er,” which quickly calculates net operating income, cash flow, total invested amount,

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and return on investment. It also gives you the option to select whether closing costs are financed or not financed, which will change the cash flow, total invested amount and return on investment.

Quickly analyze your next investment opportunity by visiting our website at: www.360investments.net.

Online there are other software programs available that provide more extensive anal-ysis, like return on equity based on future projected appreciation rates.

Investors should monitor their invest-ment figures monthly and keep tabs on market appreciation/depreciation, rental vacancies, rental rates, population growth, mortgage interest rates, job growth, unem-ployment rates, number of foreclosures, and other key economic factors.

Leverage can be lowered by increased property values, principle mortgage reduc-tions and additional principle payments. Leverage can be an investor’s best friend or worst foe so please be careful!

For more information, please visit online: www.360investments.net

Leverage can be an investor’s best friend or worst foe so please be careful!

Leverage is a Double-Edged Sword, pg. 18

Rent your property FASTHIRE Dorfman Property Management

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“YOU can Be the BANK in Today’s

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Texas is the #1 Growth MarketInvestors are Needed to Fund Housing Projects

Ron Black, Investor, Texas Real Estate Broker and President of Texas Investor Homes

SPECIAL REPORT INSIDE BY:

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Provide Short-Term Financing to Builders for High Potential Returns and Cash Flow

If you’ve been looking for an easier way to invest in real estate then you may find the answer in this report. Many years of experience in real es-

tate has taken me from the traditional “buy a fixer upper and rent it” to foreclosure and REO buying and rehabbing. I have dabbled in short sales and then finally in new con-struction opportunities before I discovered the severe need for alternative builder con-struction financing. Although I had great success with most forms of investing in

yesterday’s market, I found that creative and unique new construction real estate investments were the most trouble-free and profitable in today’s NEW real es-tate investment market. Yes, the market has changed dramatically since 2008 and what builders need from investors has changed as well. Are you positioning your-self for this change? Net cash flow is the name of this new game NOT appreciation.

Change: More Important than Location?Savvy investors always have their ear to the ground and their nose to the wind seeking new opportunities. Savvy investors are also not scared to change. We’ve all heard the real estate axiom: “Location, Location, Lo-

cation!” Well I have a new one that is just as important in today’s real estate invest-ing market:“Change, Change, Change!” Are you still trying to get 5% down or no money down for your investment property purchases? What about getting an 80/10/10 loan as an investor? Are you endlessly bidding on foreclosures with no success? What about short sales? How many have you bought? The challenge for most real estate entrepreneurs is to recognize when it is time for change. That time is

NOW. Right now the new construction real estate market is SCREAMING that it needs alternative builder financing. Are you lis-tening?

What Happened to the Real Estate Party?The devaluation of many real estate mar-kets across the country coupled with in-credibly tight lender financing guidelines has depreciated many markets back to where they were eight to 10 years ago. That rapid price depreciation in itself hastened the downfall of many seasoned real estate investors, not to mention banks and lending institutions, etc. Since many investors were already using very short-term financing,

when it came time to refinance, the lender guidelines had already tightened and the price appreciation had reversed and they were stuck “upside down” or “unqualified” to refinance any longer. I can see many of you reading this shaking your head because this actually happened to you or someone you know. The Glory Days of double-digit, year over year appreciation are gone with a few rare market exceptions. Low single digit appreciation is most probable for the next 10-year cycle. In other words, if you are going to make any money in this NEW market investing in real estate you better make it on cash flow because significant appreciation is unlikely in the foreseeable future.

A Better Option to “Buying” Real Estate.So what are the options for potential high yielding returns on our real estate invest-ment dollar if price appreciation is very limited and we are tired of the landlord game? What many frustrated investors are doing because of these lending changes is looking almost strictly for “Cash Flow” opportunities versus the long shot of price appreciation. One way many investors are achieving high cash flow is simply by “loaning” rather than “owning”. The op-portunities are endless because builders are having an extremely difficult time finding traditional bank financing.

Why are Builders Willing to Pay High In-terest Now?The real estate market is screaming right now for alternative financing, especially in higher demand areas like Texas. Builders in particular are hurting right now because many banks absolutely will not loan to builders regardless of the demand. Why? “Real estate” is a dirty word to banks right now. Banks that do loan to builders do so at much lower levels than before even if their builder/client has been performing well on their loans for years. Listen to the news every night and you will hear a story about banks “not lending”. Builders and many other small businesses are begging banks for loans. The sad part is that some of the very banks we as taxpayers “bailed

By Ron Black

out” have now turned their backs on us and quality builders who were their best clients for years! The lending restrictions for builders has more to do with the banks reducing their exposure to real es-tate loans “overall” than it has to do with the credit worthiness of the builder. Builders did not need us as private lenders two years ago because banks were shoving money at them for 7% to 9% APR. Now builders need small pri-vate investors in order to keep building and will pay them more interest … for now. When you think about it, what are the other options if banks do not lend to builders? There aren’t many. Some of the builder’s homes are sold even before they are built. This is the opportunity that many investors are seiz-ing on. There is a huge funding niche in today’s market ripe for the picking if you know how to tap it.

Lending vs. Buying as an InvestmentThere are many flavors of new construction investing but the one I will cover here is my personal favorite, Interim Construc-tion Loans to Builders for High Net Cash Flow. Depending on your background and experience level in real estate investing, you may find this topic to be a rather strange approach to traditional real estate investing since we are talking about lending rather than buying. The main rea-son I considered this lend-ing approach for my real estate investing was that the old approach was not working any longer in to-day’s market. The typical “buy and hold” approach most real estate investors were raised to believe in has disappointed many in-vestors over the past few years. The same thing can be said for the stock mar-ket. The market correction, volatility and the current government taxation and regulation uncertainty has made many real estate and stock market investors

look suspiciously at their “buy and hold” approach. There must be a better way to invest rather than the unpredictable stock market!

Who is Eligible to Invest?Most anyone can invest as a lender regard-less of their credit score as long as they have access to cash. You can even invest with your IRA and 401(k) through a “self-directed” structure. You can invest person-ally or with an LLC or most any type of entity structure you choose. Many inves-tors who have low credit scores choose to invest in this program because they can no longer get a real estate loan to buy prop-erty. Many foreign nationals invest in this program because of the almost impos-sible lending guidelines that prevent them from owing investment real estate. The

best news is that you do not need to go through a rigorous qualification process to be “qualified”. Almost anyone can become a private interim lender, if they have access to cash. Be an Investor, Not a Land-lord.Making the mental leap from the “Landlord” frame of mind to an “Investor” men-tality also requires a change. Many investors entered into real estate like I did initially, as a landlord. They may think they are “investing” but over time they become a slave to

the property and the tenants and it becomes a second job. Even if you hire a property manager you still have to “manage the manager”. I hear about how landlords who put very little down are always struggling with poor cash flow or even negative cash flow. One tenant turnover can wipe one year’s total cash flow. Remember this: It’s not the monthly cash flow you make that’s important, it’s the yearly cash flow you keep that counts.

How Much $ Do I Need?Rather than placing a 20% down payment or more on buying real estate, you can place that same amount into an interim construction loan. It might require a little more than the typical down payment on an investment property, but because lenders now require 20% down payment or more

for investors, many homes you would buy would not be far from the current mini-mum interim construction loan amount anyway. It’s getting even more expensive as many lenders are now re-quiring a 25% investor down payment to get the best rates and terms. And dare we predict that it will not be long before a 30-35% down payment or more will be re-quired even for high credit worthy investors? It may already be here by the time you read this report. Oppor-tunities are available from as little as $77,000! >

Ron Black is a licensed Texas BROKER and

President of Texas Investor Homes. He is known as one of the leading Creative New Construction Investors in the country. Ron develops advanced investment strategies for smaller, pas-sive investors using NEW Construction as his model. He creatively applies these high cash flow strategies to single family and multi-family home investment opportunities and makes these turn-key opportunities available to small investors all over the country.

His specialty programs are Lending Private funds to Builders such as Interim Construction loans poten-tially yielding 18% APR and New Construction sales to small Investors. Most of Ron’s experience was derived from develop-ing real estate investment programs for his per-

About Ron BlackInvestment Opportunities in Dallas-Ft Worth . Austin . San Antonio . Houston

sonal use and he invests alongside his investors in many opportunities. Ron’s goal is to provide stable income and cash flow with little involve-ment from the Investor.

Ron’s superb rela-tionship with builders provides his Investors unique and fresh op-portunities in all major markets across Texas and in other select parts of the country.

Ron’s motto is: Let’s be Investors Not Landlords!

You can reach Ron at 972-897-6190 [email protected]: www.Texas InvestorHomes.com

Sources of Funds You May Al-ready Have.Do you have an IRA or 401(K)? Are they growing securely? Many investors are converting their stag-nant IRAs and 401(K)s to “Self-Directed IRAs”. They then take those IRA or 401(K) funds and place them to work in interim construction loan opportunities at 14-18% APR! IRA conversions are easier and more affordable than ever to set up or transfer if you know the right companies to use. The best companies we work with do a “checkbook” style IRA account giving you direct access to your funds for investment. The reward is that you can conceiv-ably achieve much higher returns for your retirement funds and have the ability to use a source of funds that have been sitting idle in most cases to continue your real estate investments.

What Type Homes are Being Built?Most investors I work with pre-fer single family homes for their interim construction loans. Exit strategy is easier in a worst case scenario, plus the demand in Texas is found in single family homes and townhomes. Valuations can vary but typically we try to fo-cus on homes that sell between

$100,000 and $200,000. Our loan to the builder is usually 60% to 70% of the val-ue of the home being built. Our pipeline of builders is growing in this price range and we remain very strict in sticking to our funding niche on price and market loca-tion. There are many of these opportunities

available in some of the top growth cit-ies. Texas has four of the top 10 cities in America predicted for growth over the next few years.

Risk vs. RewardLet’s talk about risk. If you invest $100,000 in the stock market is it risky? Can you lose it all? With single family home interim con-struction lending it would be extremely rare for you to lose it all. And if done correctly, I can safely say that you can likely NEVER lose all your investment. Yes, there is some risk but let’s talk about two of the reasons this is a reasonably secure opportunity. First, we are always a first position lien holder of the property. We don’t usually invest in a second position loan because of the higher risk. Second, we don’t usually invest all the funds at once. In many cases

the funds are disbursed in stages or “draws” as each phase of the home is completed, foundation, roof, sheetrock, etc. If something should happen to the builder you would have enough left in es-crow to complete the home and sell it or rent it to get your invest-ment back. In some markets we escrow the loan funds and em-ploy private inspectors to check each phase and verify the work is being done correctly. Long distance investors have pictures emailed to them at various stag-es of construction. Many long distance investors find the in-terim construction loans much easier to invest in than owning real estate. And many investors tell me they make more money loaning and with less stress than they ever did owning real estate. Considering the high return po-tential available, many investors say that investing in this type of lending can be much more secure, profitable and less risky than the stock market or even owning real estate if structured correctly.

NOW is the time to Loan, not Own!If you are stuck in an investing rut and are looking for a posi-tive change in your real estate investing, you should seriously consider the interim construc-

tion loan investment option. If you have never invested in real estate this is an easy way to get started in today’s new real estate market. I would encourage you to focus on being an Investor and not a Landlord with all your new real estate investment oppor-tunities. Change the way you invest to re-flect today’s NEW market conditions and you will prosper!

Further Information and Comments:To learn more about interim construction lending in today’s NEW real estate market and creative real estate investing, contact: Ron Black, Texas Investor Homes, 972-897-6190, [email protected], www.TexasInvestorHomes.com

Don’t buy your next property without it!

Home Replay’s Property Analyzer

There’s no doubt the real estate market has taken a hit in recent years; how-

ever, it’s still a viable way to increase your investment portfolio. One area that is expected to grow is the rehab market. Gary Geist, rehabber and owner of Home Replay, LLC believes that it will continue to see growth over the next few years. And with the advantage of more than 80 years experience in the real estate investment arena, he just might know a thing or two about it!

Whether you’re a nov-ice or a professional real estate in-vestor, you’re already aware of the time involved in choosing those properties that offer the greatest return on your investment (ROI). You get a list of available proper-

ties, visit each of them to see what needs to be done, then sit down and review the data to determine which ones will be the most profitable.

This process takes quite a bit of time, but as you know it is also a task that’s necessary to determine your profit mar-gin. One factor involved in purchasing a home that inves-tors often overlook or discount is the emotional factor, but no matter how professional you may be, it can sometimes be dif-ficult to rule out the emotional appeal of a home.

This appeal can interfere with the objectivity that’s necessary when in-vesting in real estate. If you let your emo-tions weigh in too heavily on your decision to purchase, you just might end up with a

money pit rather than an investment ve-hicle. The best solution for this problem is to make all of your purchasing decisions based on the same set of criteria. This is how you remove the emotional factor and deal with just the numbers. Home Replay LLC, has created a powerful tool that will help you do just this.

The Property Analyzer is an easy-to-use software program that will drastically re-duce the time involved in deciding which properties to invest in. Using well-defined criteria, established by experienced rehab-bers, the Property Analyzer will help you choose the homes that will produce the greatest return on your investment.

Here’s how it works: The Property Analyzer program estab-

lishes a baseline analysis of nine sectors of the home: ●curb appeal●windows and doors

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Continued on pg. 37


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After a few years of managing rentals, many real estate investors decide to take a step back from actively managing tenants. Instead, they begin to work their capital by lending it to others for their purchases of real property.

Experienced investors know that managing rentals can be a chore. They also know that owning real estate in a down market offers more potential risk than at other times, so it’s no surprise that after a while, real estate enthusiasts seek alternative investments for their portfolio. This is where Chris Gleason steps in. As partner and co-founder of MMG Capital, Gleason’s job is to match investors with conservative investment opportunities that can withstand the risks associated with today’s volatile environment. “If you understand what’s happening to our country, you can actually capitalize on the opportunities that are being presented,” he explains. Robert Marlin, a mentor and advisor to MMG Capital, recently explained to Gleason that the real estate rule of “location, location, location” is not as important today. Now, it’s all about timing,

MMG Capital Finds Opportunity Within the Financial Storm

timing, timing. And in Gleason’s opinion, the time to be actively purchasing real estate has passed; now it is time to move on to a passive strategy, one more fitting for these turbulent times. Investors are invited to come alongside MMG Capital as a private money lender. The opportunity to earn double-digit returns with little to no risk is an investor’s dream. That dream can be realized through working with the creative finance team at MMG Capital. MMG Capital was created to leverage the numerous opportunities available in today’s market as a result of the global credit crunch in the financial world. The creative real estate and asset-based finance company is fueled by the creativity to mesh win/win economic strategies for both investors and borrowers. For those seeking funding solutions, MMG Capital gives borrowers flexibility. Because they are an asset-based lender, MMG Capital can fund deals quickly and without concern for credit score, financial reserves or income verification. One of the problems for those heavily involved in real estate or for those who are self employed is lack of income verification.

While investment bankers hold ontight to funds, savvy investors

enjoy double-digit returns backed by prime real estate.

by Matt Malouf | edited by Anita Cooperphotography by Sam Green


Another issue for many investors is liquidity. Gleason lends to high-net worth individuals, those who already have significant equity in real estate or other assets. MMG offers a lifeline to deserving individuals in today’s hostile financial climate. One noteworthy aspect of MMG Capital’s approach towards investors is their focus on collaboration. Using a one-on-one approach, investors are encouraged to participate, learn and grow with MMG Capital. Investors can hand-pick those investments they wish to be a part of. This provides individuals with the benefit of having a direct impact on their investment portfolio, rather than simply giving MMG Capital their money and then wondering how it’s being managed. Most of the investments, which I reviewed with Gleason in his Southern California office, averaged less than a 40% loan-to-value ratio and spewed 12% to 14% returns, the loan was secured, in some cases, by multiple properties. “We leave at least a 60% equity cushion in there, we want the borrower taking more risk than we are,” Gleason explains. While he admits that no investment firm in the world can guarantee a return, MMG’s conservative approach ensures an extremely low risk to investors and offers “one of the best risk-return ratios available in the marketplace.”

Here is an example of a typical MMG Capital investment transaction:

A borrower owns a $1 million property and needs some cash to purchase inventory for their business. MMG Capital will make a $200,000 loan to them and secure it with their $1 million property. Even if the property loses half of its value over the next 12 to 24 months, the $200,000 MMG Capital loan is still secured by $500,000 of equity. As an investor himself,

Gleason, who obtained his bachelor’s degree in finance from the University of Southern California and an MBA in Financial Planning from California Lutheran University, has direct experience with several alternative investing strategies. He has owned dozens of properties throughout the country and is well versed in multiple real estate scenarios. His flagship office, located in Florida and operated by a partner, allows MMG Capital the ability to do something very few hard-money lenders can do: fund deals across the nation. Although the company’s wide area of operation seems risky, the company is conservative in its investing approach. “Now isn’t the time to be taking risks,” Gleason says, adding, “Now is the time to be guarding your capital and taking a conservative approach. Nobody really knows how bad things are going to get

in the years to come.” This investment philosophy reveals just how conservatively MMG Capital values their assets in order to properly secure their investor’s money from danger. “An important part of investing is planning for the worst-case scenario,” Gleason explains. “In the case of lending, assuming you’ve made a good loan, the worst case scenario is that you could wind up having to foreclose on your borrower.” Foreclosure may drive fears into the mind’s of investors, but Gleason explains that foreclosure is merely your legal right as a lender to force liquidation of your collateral in order to recoup your investment because your borrower failed to uphold their obligation to repay. For an investor, a foreclosure on an asset with lots of equity is not viewed as a catastrophe, instead it is merely seen as a temporary cycle in the life of an investment

asset. The real estate is still there, it has not vanished into thin air like paper assets do in a turbulent market turn. P e r h a p s t h e m o s t unique benefit to working with MMG Capital is their investors actually review potential deals and give them a thumbs up or thumbs down. This a l l o w s i n d i v i d u a l s t o invest the amount they are comfortable with, in the time frame that suits them, with an investment they can be proud to place in their portfolio. “Safety, security and consistency are three words that we use around our office all the time,” Gleason says. “Our investors sleep well at night because they know that they aren’t going to wake up in the morning to find out that their investment is in trouble,” Gleason says. MMG Capital offers an investment vehicle unlike any other in the marketplace. It is one that will pay an investor a consistent return and offer them the protection of a well-secured loan.

MMG Capital Provides Investors with Options

Following are some key aspects that make MMG Capital so unique in the marketplace.

• MMG Capital employs their decades of frontline experience with investors and professionals on the ground to research the market and find only the very best investments. • When comparing investments made by similar lenders, MMG Capital is the most conservative company of its kind. • Investors call the shots when it comes to their money. They decide how much and where they want to place their hard-earned investment capital by choosing the specific deals they want to be involved in. • MMG Capital offers some liquidity in an illiquid environment where investors have the ability to get their capital back when they need access to it. • No required minimum investment — the comfort level MMG Capital provides is second to none. • A nationwide network of mortgage brokers ensures that there is never a shortage of opportunities for analysis by MMG Capital, of which only the best deals are brought to their investors.

Are you aware that with as little as a few t h o u s a n d

dollars an investor can own a share of a loan that is secured by luxury or commercial real estate generating up to double-digit returns? Yes. If you are an investor fed up with dismal returns at your lending institution, it’s time to introduce you to MMG Capital’s Liquidity Program. This program, automatically extended to every MMG Capital investor, ensures that if liquidity is needed, the investor can get their cash back; even in the middle of the term of the loan. For example, let’s say an investor has money trapped in a CD, or a money market account bringing in the standard 0 .75%, i t ’s bas i ca l ly just sitting there losing purchasing power every day. The investor wants to put the money to work in a safe, secure investment, but they are a busy professional: They have a company to run, family to relax with, vacations to plan and a life to live. What can investors do? They can lend their money out to other high-net worth individuals who qualify for the MMG Capital’s funding program. They, along with other investors, can participate in assisting other individuals who have substantial wealth and assets, but who may not qualify for traditional funding. One of the best and most unique aspects of this program is that investors can withdraw their principal investment at any

time with only a few month’s notice. MMG’s Capital Liquidity Program offers flexible options for investors who seek shorter-term exit strategies, but realize that real estate is still the best place to store their money. If you are an investor facing dismal returns on your hard-earned money, all that really stands between your current situation

and one where you’re making double digit returns, month after month, is a simple phone call to MMG Capital. Contact us today and see what double-digit returns can do for you.

For additional information about Chris Gleason or MMG Capital, please contact: 310.295.1121

Discover MMG Capital’s

Liquidity Program


LARGE EQUITY AND POSITIVE CA$H FLOW

seeing right now in Birmingham? Chris: We are acquiring homes from asset managers, banks, foreclosure sources, short sales and general listings. Since we pay cash and have a good reputation for closing quick, we get excellent deals. This allows us to pass on the savings to our clients. For example, we are able to sell all-brick 4 bedroom, 2 bath homes that are about 1,500 square feet and recently remode led fo r a round $65,000. These homes are already under management and cash flowing with rents at $850 to $900. These houses have had past retail sales in the low $100,000s and are incredible deals. We have been able to nar-row our searches down to the most desirable neigh-borhoods and in the best school systems. In fact, our main area of focus is where I personally grew up through elementary and high school.

Q: What is the best part about being an investor in your market?

Chris: Our products work, plus we always try to under promise and over deliver. If you are one of our investors, you are on our team and you have a complete crew on the ground. This is so important since we all know that property management can be the difference between a good and bad invest-

ment. We always invite our clients to town to see our operation and get to know us on a more personal level. We like to think that our Southern Hospitality does us good ser-vice. Also, many people have no idea how beautiful Alabama and Birmingham are. It’s a great place to live and raise a family.

Question: How is your market handling the economic slowdown? Chris: Birmingham is not a “peak and val-ley” market. We are slow but steady in ap-preciation as well as decline. We average about 2.5% per year. We also have a huge workforce to keep our economy stable. The largest employer, the University of Alabama at Birmingham, has 53,000 stu-dents and employees. It was also named in the top five hospitals in the nation. Many professional athletes and entertainers come to Birmingham to be seen by Dr. James An-drews, who was named the “Most Valuable Person in Sports” by CNBC. We also have several large auto plants, Honda, Mercedes and Hyundai, all contributing to our labor markets. Birmingham’s charm, low cost of living and being on the cutting-edge of technology is positioning us to compete on a global scale. Q: What kind of opportunities are you

Market Spotlight: BIRMINGHAMLOCATION:Birmingham, ALCOMPANY:Premier Equity GroupCONTACT: Chris Donaldsonph: (205) 201-6663


The Donaldson family

Q Why should investors from afar invest in Birmingham?Chris: For the last four years we have been selling turn-key homes to out-of-state and out-of-country investors. It is our main area of focus and basi-cally our entire client base. We have learned and adapted to the needs of someone who may have never stood in front of their property. We do our best to provide pictures, video, Google Earth snapshots, any-thing to give the clients the best information available for their due diligence. We are with the home from beginning to end. We purchase it, we remodel, we place the tenant, we put it un-der management. So, we really know the house and occupants better than anyone.

Q: What makes your compa-ny unique? Chris: We are normal people try-ing to stand out in a sometimes very difficult and overcrowded business. I think many people can relate to this statement. This industry has been ravaged by unscrupulous sales, bad foreclosures, market declines, mortgage changes and even federal law. Despite all that, we have been able to weather these storms and continue to provide excellent products. When you meet us, you’ll see we are not living the rich life, driving fan-cy cars. We are just family men trying to be good fathers and husbands.

Q: What kind of programs do you currently offer? Chris: Right now, we have a cash purchase discount and we also offer very generous refer-ral fees. The buy-and-refi days seem to be over, but we are still talking to mortgage companies to try and find the best programs for our buyers.

Q: Do you have your own in-house management? Chris: Yes, Impact Realty Advi-

sors. We use a web-based man-agement software called Prop-erty Ware. It allows the owners to see all of their statements, work orders and leases in their own password protected portal. It also has allowed us to move to direct deposit systems and many other great improvements to help our growth. Also, our leasing team is about as good as you will find. We operate at near 100% occupancy unless there is a house undergoing re-pairs or waiting on an inspec-tion.

Q: What investing tips do you have for our readers? A: Get out there and visit the area you are going to invest in. Make sure your property man-agement team is in place and are willing to help. Never be nervous to ask questions and inquire about school systems, crime, taxes and other impor-tant issues. Many people will buy on an impulse, don’t do it. In the world of investing in sin-gle family homes, you need to take the “get rich slow” route. Take it one step at a time and get with someone you trust or have built a relationship with.

Q: What is your real estate or management philosophy? Chris: I read as a young man that 80% of the world’s mil-lionaires were in real estate. I think that day I became a real estate investor, at least in mind. It was always a goal, something that I knew would be in my fu-ture. Now that it is my job, I’ve learned to love the business. I truly believe in our market, I buy homes next to the ones we sell, I own apartments in our ar-eas of focus. It is a good feeling to drive down a street where we remodeled two or three houses and know that we were partly responsible for the renewed in-terest in the neighborhood. If I can do all that and give my fam-ily a comfortable retirement, I think I will have won.

Realty411Guide.com PAGE 33 • 2011 reWEALTHmag.com (796-3896)

market in the nation with this much construction going on. We have a new lakefront develop-ment, The Lakefront West Proj-ect, a new billion dollar casino, as well as a new shoreway proj-ect. Plus, there is a new conven-

tion center being built and additions to the Cleveland clinic hospital as well as a new university health campus. Q: Why should investors from afar in-vest in your area?Sean: Cleveland is growing and it has a rich history. It has one of the oldest and most es-tablished arts culture in the nation. The Cleveland museum of art is undergoing a $150 million dollar addition and renova-tion. Also, Playhouse Square is the second largest live theater district in the nation. Cleveland is located on the shores of Lake Erie and it has the largest metropolitan lakefront in the world. We also have the third most visited park system in the country, Cuyahoga Valley, a national park with over 22,000 acres. Our city is both affordable and family friendly.Q: What makes your company unique?

Sean: The owners have over 100 years of combined experience in real estate and have a large portfolio with homes rang-ing from $35,000 to apartment complexes worth millions. We also have 40 years of combined experience with new retail com-mercial construction and management. Our deals are priced below market value with great cash flow and appreciation.Q. Do you have your own in-house man-agement?Sean: I think management is the most im-portant key to success. Your investment is only as good as the management behind it.

We have our own in-house management staff, which is overseen by our companyQ: What is your real estate or management philoso-phy?Sean: Well, we only buy in

GOOD areas. This can’t be stressed enough. By buying in solid and safe areas, it makes management that much easier. You can then attract the type of clientele you want to rent your units. We also stress buying in predominantly owner-occupied areas. For more information, visit:www.RichFromRentals.comor www.BuyHoldRent.com

Market Spotlight: CLEVELAND LOCATION: Cleveland, Ohio COMPANY: BH&R Properties RichFromRentals.com CONTACT: Sean Whalen, CEO ph: (216) 240-7363 Question: How is your market handling the economic slowdown?Sean: The slowdown has actually been great for business. It is a catch-22 in that you have to have cash in order to take ad-vantage of the market. We are fortunate to be in a positive position and are able to take advantage of the down market and low prices. In turn we are able to then pass these savings on to our investors.Q: What kind of opportunities are you seeing right now?Sean: Due to the foreclosure crisis, we are seeing prices from 30 years ago. The hous-ing stock, like the rest of the nation is plen-tiful. Due to the strict lending standards, we are finding a large demand by renters who are unable to finance a home purchase and therefore must rent.Q. What is the best part of being an investor in Cleveland, Ohio?Sean: The best part is seeing all the growth taking place. I think Cleveland is the only

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seller financing (also called land contracts, contracts for deed, or installment contracts). The investor’s name remains on the deed for the term of the agreement while the owner-occupant makes monthly pay-ments. The owner-occupant also has full responsibility for taxes, repairs, and upkeep of the property. At the end of the term (15 to 20 years) the deed is transferred to the owner-oc-cupant. Meanwhile the investor makes a significant return on the initial investment.

For Example:Bulk purchase price: $12,000 (one house)Sale price: $37,000Down payment: $1,000Financed price: $36,000 (15-year, 9.5% interest)Amortized over 15 years: $67,500Less purchase price: -12,000Return on investment: $55,500

Passive investors who want access to the great returns, but don’t want to set up a business to sell houses to individuals, can buy into the business. They purchase the land contracts and the underlying properties from active investors who are look-ing for cash. These contracts are sold at a discount, which offers even more upside for the passive investor. For ex-ample, a 15-year, 9.5% interest contract with a face value of $36,000, bringing in $375/month, can be had for $26,500. Over its term, the contract will bring in $67,500; that is a 40% return on in-vestment.

Buyer BewareBulk REO is an

exciting and fast-paced business, but as with any potentially high return invest-ment, there are many charla-

tans. The internet is full of web sites purporting to sell bulk REO lists; however, some of these lists are fraudulent, and others contain truly unsellable properties — burned out shells, vacant lots and uninhabitable mobile homes. In order to navigate this challenging mar-ketplace, trusted mentorship from a reputable list broker is imperative. Do your diligence. Ask for references. A reputable company will happily provide more than five references from non-relatives! Find out about after sale support and get it in writing. Ask about fees. Some companies hide their fees, oth-ers offer full disclosure, but all companies charge fees. Finally, take the plunge. The market for severely undervalued homes will dry up. Will you be the person with an income produc-ing portfolio to see you through your golden years? Or will you be the person saying, “If only….”

Why Good Folks Can’t Get Loans

1. Banks don’t make loans for less than $60,000. The value of most of the bank-owned homes are $50,000 or less. Without private financing, these houses will continue to sit vacant.

2. Many low-income fami-lies struggle to keep a good credit score. Banks don’t like this. The savvy private investor knows that credit scores do not predict the ability of a person to pay a mortgage. The monthly

payment is the predic-tor, right-priced loans get repaid.

Lori Greymont is CEO of Summit As-sets Group. She offers educational presenta-tions around the U.S. plus trains and men-tors people new to bulk REOs. Her company

sells bulk lists and seasoned land contracts. For more infor-mation, call 1-888-440-6826.

Monopoly on Baltic... pg. 15


Question: How is your mar-ket handling the economic slowdown? Michael: We have felt a steady rebound for the latter part of 2010. Our prices are remaining low, taxes are low and demand is increasing. I think people will still strug-gle to qualify for new homes, so our company decided to build new homes for them to live in. Each property gets close to 100 inquires so the rental market remains ex-tremely strong.

Q: What kind of opportunities are you seeing in this market?Michael: Indianapolis remains the place for cash flow. The place to own and not worry

Market Spotlight: INDIANAPOLISLOCATION:Indianapolis, INCOMPANY:RealEstateDone4You.comCONTACT: Michael Drewph: (614) 323-3739

about fires, hurricanes or natural disasters. Our clients come from New Hampshire to Marina Del Rey, CA, as they have found consistent income with their Indianapolis properties. Opportunities abound for inves-tors who want to leverage their retirements without stock market exposure, or for those

seeking positive cash flow on 15 or 30-year mortgages.

Q: What is the best part of being an investor in your market?Michael: The best part of be-ing an Indianapolis investor is the confidence we have in our market and company. Our family-owned and operated team has 15 years property management experience with a hands-on management style

and a 90% repeat business rate. We are here to build relationships with our inves-tors and when they fly into town and see the $1.1 billion-dollar new airport and vari-ous other city improvements, it all makes sense.

Q: Why should investors buy in India-napolis?Michael: It’s the perfect storm. Indy has the three keys for rental real estate: It’s a capital city, it has nearby universities and a diverse economic base. On top of that, our company has spent the time and mon-ey to develop the proven systems needed to make it all work. The rental market is strong, the performance is consistent and we also own in the same areas you do!

Q: What makes your company unique?Our company is a third generation family-owned and operated business. Our experi-ence ranges from deeply discounted acqui-sitions to millions of dollars in completed rehabs, to over 15 years of property man-agement service.

Q:. How long have you been personally investing in real estate?My partner, Quenton Adkin, and I have been investing for 15 years.

Q: Is there any special financing avail-able or programs available?

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●roof and foundation●plumbing and electric●HVAC (heating, ventila-tion, air conditioning)●walls and ceilings●floor●kitchen●bath

As you walk through a home, you will rate each of the nine areas from zero to five, with zero stipulating that no repairs are needed in that area. Then, when you’re ready to use the software, you simply en-ter a small amount of information on each property (up to eight homes can be com-pared), stipulate the financing options and establish a few investment rules and fixed expenses.

The software will use the data you’ve entered, which includes information such as where the house is located, the ratings you’ve given each home, square footage, etc., to calculate the costs involved and po-tential profits derived from the deal. The final calculations are then displayed in an easy-to-read and understand format, mak-ing your buying decision that much easier.

The Property Analyzer program is easily customized to suit each real estate market

and can help you quickly determine how changes such as the offer price or financing terms will af-fect your investment op-tions. If you’re a REALTOR® or listing agent, the Prop-erty Analyzer can help you find those homes, which will suit the in-

vestment needs of your clients — making your phone ring off the hook with investors who want to hire you! What the Property Analyzer program does is simply prevent you from buying the wrong property. And in the current eco-nomic climate, making informed financial decisions can make all the difference be-tween keeping and losing your investment capital. The Property Analyzer in excel version is available on www.HomeReplay.com. A web version is also available and can be obtained at www.SmartInvestorTool.comFor more information on how the Prop-erty Analyzer can increase your profits, contact Gary Geist at 202-841-1821.

Michael: We have a mortgage team that can assist investors and can get almost any deal done. With that said, our business is typically 70% cash. The properties are too easy to acquire for cash at these prices. Also, we encourage our clients to check out rolling over their IRA to a Roth and in-vesting with that, that way, their monthly rental income is tax-free. For more infor-mation on that, check out our free ebook: www.RothIRARealEstate.com.

Q: What tips do you have for us?Michael: It’s all about relationships. We urge readers to contact us, have a conver-sation, come out and take a visit and see if there is a match. Much of our business comes from our clients in California, so I’m out there often. Investors can set up a meeting with me while I’m there.

Q: What is your real estate or manage-ment philosophy?Michael: Respect. It is necessary, but often uncommon in our business, specifically when dealing with tenants. Our investors want performance and as a property man-agement company we treat our clients with respect as it is essential to keep a property maintained and performing.

Home Replay’s Property Analyzer, pg. 27

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From today’s date until 2014, we are predicting the start of the downfall of commercial notes. For residential real estate, we are also predicting

a downfall, which will start in 2012. We can predict this based upon the number of notes that are set to mature. The whole sub-prime mess was created by zero down financing, so be very wary of seller finance in your transactions during this pe-riod. There is a highly probable scenario of both a commercial and residential real estate decline in value over the next five years.

The good news is that with any down market there is extreme opportunity to grow and succeed. For the next four years we have the opportunity to create the best commercial system for ourselves. In 2012, we are going to see the largest num-ber of foreclosures to date when prime

mortgages are going to reset for resi-dential home owners. This will severely drop housing prices in the foreclosure and shorts sales markets and make life a whole lot harder for residential flippers in California. It’s another potential for disaster for both investors, speculators and the American people. So many investors are very much involved with short sales and the foreclosure markets, its a very popular place to be right now. But being popular is not always going to lead to success. Many of us in today’s economy should strive do less popular applications and look for the up-coming trends. Warren Buffet says, “Be fearful when people are greedy and greedy when people are fearful.”

Longfin Investments has identified a trend in the commercial marketplace.

Many investors love multi-family and I do too, when it makes sense for cash flow positive investments. Feel free to take a look at my last article in this publication to

see our views on cash flow. Longfin Investment Solutions helps

numerous investors in locating the best properties nationally. Our commercial fo-cus is on apartment complexes and hotels. Over the last three months there has been a strong movement in the hospitality busi-

ness from both the buyers and sellers. Due to the increase of the stock market from last year, which is a rebound from the decline of 2008, hedge funds and retirement fund managers have been infused with cash and are purchasing under-valued assets that require little maintenance or work. Since these hedge funds, private equity funds, REITs and pen-sion fund managers are not investors and are not inclined to manage a serious reposition or solve a human problem, they prefer to purchase properties

that are performing, have high demand and have current occupancy. They have been very active in A/B grade apartment

complexes and also in 4 plus star hotels as well. They have high demand for areas such as New York City, California and other capital appreciation sub-markets like

Arizona and Florida. Longfin Invest-ment Solutions provides these type of opportunities for clients. Depending upon location, we can often provide properties at $0.50 of replacement cost or previous value. Our system enables the buyer to purchase at a discount and not have to manage a chain of referrals or sign an MFA for a bunch of strangers. They deal directly with us as the principal.

For those readers who may have con-nections with buyers who are looking for apartment complexes and hotels, let us know. Longfin Investment Solutions is seeking marketing partners who are interested in making six-digit profit shares on a single transaction. Please visit our website and get connected to our classes at: www.longfinivestments.com.

In closing, I would like to share our company motto: “We are measured by the lives that we touch and the influence and leadership that we can bring to the people who want to learn more and desire to unlock their true potential.”To reach Mike Woo, please email him at: [email protected]

Commercial Trends Lead Savvy Investors toward Success

by Mike Woo


Mike Woo

ing at just $37,000 it’s no wonder that the team has transacted over 900 deals this year alone!

Investors from around the nation, as well as abroad, are attracted to the Phoenix mar-ket because they are able to secure practi-cally brand new homes for approximately 50% below builder’s cost.

Next, Black Belt Investors will take care of the entire rehab process after the prop-erty is purchased at auction. Their goal is not to sink a lot of money into the rehab but merely to bring the property up to standards to entice an owner-occupant to purchase the property from the investor at market value.

“We want to get in and get out,” Sensei admits of the rehab process. Often the prop-erty will only require cosmetic repairs: new paint, new carpet and minor landscaping.

Speed is important in the fix-and-flip busi-ness, every day the property sits, it eats into the investors’ pockets. Black Belt Investors knows how important time is, therefore the

period between acqui-sition and deposition takes approximately 97 days with typical profits ranging anywhere from $8,000 to $25,000 per transaction.

For the buy-and-hold strategist, the rental market is treating them

by Linda Pliagas

It was a beautiful sunny morning in Arizona on the day the Ultimate In-vestor’s Tour was planned. Dozens of eager investors met up in Tempe and loaded a sleek black bus in

search of discounted properties in Phoenix, Meza, Gilbert and Queen Creek. The team at Black Belt Investors, led by Sensei Gil-liland and his charming wife, Annamaria, organized an educational event that drew investors from California, Nevada, Michi-gan, Utah and Indiana.

The first stop on the tour early Sunday morning was a trip to meet Sensei’s local

“power team”. Inside his luxurious modern office in Mesa, Sensei introduced his con-tractor, listing agent, property manager and insurance specialist. Because Black Belt Investors specializes in buying locally at the county’s court house steps, the proper-ties are at absolute “cash only” discounts.

What makes Sensei’s real estate invest-ing program unique is the fix-and-flip sys-tem he has personally developed to help his investors generate cash today, which can then be transferred into creating wealth tomorrow.

This Remote Rehabbing system is ideal for those investors who may not have the time or experience to buy, fix and flip prop-erties. They are seeking the help of Black Belt Investors to quickly earn substantial sums of cash without having to do any of the leg work. It’s also perfect for the buy-and-hold strategist who desires massive cash flow through very inexpensive newer houses.

Sensei’s Remote Rehabbing program can be activated with a simple phone call. Either Sensei or one of his Suc-cess Managers will spend time with you to help accom-plish your real es-tate goals.

With prices start-

very well. On average the time to get a house occupied is between three to six weeks.

“Focusing our sights on new houses in desirable subdivisions attract better rent-ers, which give the investor more stability,” Sensei explained during his tour.

If you’re ready for a new way of profit-ing from real estate, be sure to attend the next Investor’s Tour to learn if Remote Re-habbing is the right way for you. Black Belt Investors is hosting another Investor’s Tour in March. The event will consist of a one day educational confer-ence. The next day, investors will spend time evaluating properties and discussing the best way to generate cash and build wealth in today’s Phoenix market.

For more information, please call Black Belt Investors: 951-280-1900


Investors from 4 States Hit AZfor Black Belt’s Property Tour

Investors from 4 States Hit AZfor Black Belt’s Property Tour

Sometimes I am critical of different sales and marketing people because I really believe that they’ve lost the

ability to communicate, which results in poor service or no service at all.

I admit that I am biased because I was raised in the Midwest and have retained the values that are associated with the older generation. I know there are a different set of values, and that fact has been validated by many associates of mine over a period of 40 years.

Some of the differences I see are the result of the meaning of “responsibility”

versus “irresponsibility.” I admit that there is an age bias in addition to a training and upbringing bias.

Let me share some of my pet peeves and see if your age and attitude lets you relate to some of my biases. Let’s start with a simple thing like returning phone calls or the new communication entry: emails.

During my tenure in the securities indus-try, I followed the lead of the most success-ful brokers and learned how important it is to return ALL calls on the same day that they are received. So if a client or a pros-pect called me and I was busy with another I was always quick to return calls. The reasons is simple: I didn’t know what they wanted until I did return the call. Maybe they wanted to place an order to buy or sell something. Maybe they just had questions that needed to be answered.

It is good service to communicate prom-ptly and sometimes to assure the customer that you are there for them. The hardest calls to make, as well as return, are those made after a sudden decline in the market. I remember making calls to clients telling them about losses in their investments and

recommending a plan or action. Those were the hard calls but the most necessary. The easy calls were the ones to affirm some profitable transaction so I could gloat a little about my talent to select good invest-ments. But, both good and bad news must be communi-cated quickly as it is important to clients and demonstrates good service.

You’ve heard the saying “no news is good news,” well I want to tell you it’s not true. When you don’t make the call then the

client thinks that something is wrong and they worry. Answering calls and emails takes little time. Failure to return them cre-ates a lot more work as they have a ten-dency to build and increase in volume and may create stress as you worry about the calls you don’t return.

“Maybe they are mad at me, maybe they want to close their account, maybe they want to sue me, maybe it’s a creditor, etc...” Worry makes it worse. Call immediately and find out the reason for the call. It might even be good news.

Remember how we used to write letters to family, friends and clients? Then you had to wait for days for a response. We used to do mail campaigns with response cards en-closed and wait for the postage paid cards to be returned to see if the mailing was suc-cessful.

Today, we do an email blast to thousands of clients and prospects adding the simple instruction “click here to register.” That’s communication in a new and faster way. Despite the new technology, my original concern remains the same: The failure to communicate is growing and it is frustrat-

ing. You send an email and wait for a re-sponse. Someone tells you they will call

you back tomorrow and they don’t. People make commitments and then forget them. Advertisements for prod-ucts on radio and TV are not truthful and you know it. It seems like dishon-est communication is worse than no communication at all.

There are those who will lie to you with no remorse. Students are no longer concerned about the penalty for cheating in school or business.

We have to screen those who communicate with us to be sure they are honest. It didn’t use to be that way. Or, am I just caught up in imagining the “good old days” as being more honest, more truthful and more de-

pendable? Who can you trust is more than a slogan now. It is a normal defense for do-ing business.

One way to measure honesty is respon-siveness. Honest people return phone calls promptly and answer emails quickly. After all, they have nothing to hide and they re-ally want your business and they want to answer all your questions. At least that’s how I see it.

I guess I am old fashion but I don’t like to be put on hold, I want to speak to a real person on the phone, and I want to be able to talk to people when I call them or have them return the call the same day.

How about you? Do you think we are getting better or worse at communication? Let me know your opinion, email me at:[email protected] Yes, I will respond the same day. PS: My new book is now at the publish-ers and will be in the bookstores soon. If anyone would like to have an advance copy of “Living a Balanced Life, Body, Mind and Spirit,” just email or phone me at 949-910-6028 and I will provide you with the content for free.

Are We Forgetting How to Communicate?��

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Despite the new technology, my original concern remains the same:The failure to communicate is growing and it is frustrating.


by Charles Salisbury

Despite the new technology, my original concern remains the same:The failure to communicate is growing and it is frustrating.

A MAN LOOKED HEAVENWARD AND SPOKE UNTO THE UNIVERSE, CRYING: “I EXIST!” WHEREUPON, THE UNIVERSE (AFTER A WHILE) REPLIED: “SIR, I WILL ACKNOWLEDGE THAT STATEMENT; BUT

DON’T PRESUME THAT I POSSESS ANY SENSE OF RESPONSIBILITY IN THAT REGARD.”

— Stephen Crane (circa 1810)

Success & Natural Law

by Bill Gatten

Let’s take a look at the eternal and inf lexib le ru les that control every aspect of our role

and circumstances within the order of the cosmos, along with the crucial part of our beingness that the Universe plays in getting you and me exactly what we need out of Life.

Although fully accessible twenty-four houses a day, bear in mind that Universal Law lies totally beyond our realm of re-ality…just beyond the quantum physical realm in what is known as the extra-local or implicate realty, and is absolute, non-malleable and directly perti-nent to the tiniest aspect of our physical existence.

A far too often disregarded fact is that Universal Law, irrespective of its source, controls not only matter (the stuff we can see and touch), but also sound waves, light waves, radio waves and hu-man thought, as generated by the written and spoken human word.

In other words, if we but ‘want’ some-thing we can just say so and hope for the best: but if we truly ‘need’ something (big difference), we merely have to say so, and it is given to us.

No one can ever have a true need that is not fulfilled.

This phenomenon is the result of the un-erring ‘functional objective’ of the Cosmos

itself: i.e., an uncaring obligation to fulfill every need on every level without regard to you or me or past prophets as individuals. The Universe (‘God,’ if you wish) simply will not and cannot allow a true necessity to go unfilled.

And neither will it honor every idle hope, prayer, wish or desire to be uttered by those who are unconvinced that what they’re asking for is truly ‘needed.’ It’s only when something cannot be lived without that it is absolutely guaranteed to be given to us.

Nature Abhors a VacuumHere’s a relevant but admittedly corny analogy: Did you ever squeeze more tooth-paste out of the tube than you meant to,

and then feel a bit of a twinge at having wasted something? If so, were you aware that when that happened, you could have positioned the tube’s opening against the wastefully extruded goop and sucked it right back into the tube? In order to do so, all you needed was to gently, and (very) patiently, apply pressure to the sides of the flattened part of the tube, creating a nega-tive pressure at the tube’s opening. If we don’t rush the process and we trust in natu-ral law, the accidental spurt is drawn back to where it came from.

This natural phenomenon quite obvious-ly occurs because our squeezing creates a

vacuum, thus allowing Nature to do its job by filling that vacuum with what-ever is closest at hand.Given the right preparation (i.e., mov-

ing the opening adjacent to the spill), time (patience) and expectation (know-

ing how natural law works), any vacuum we create within this sub-quantum physi-cal existence of ours — anywhere in the universe — will inevitably be filled with whatever we introduce it to. It’s only when we attempt to short-circuit the “Law” and force our will upon something as massive,

uncaring and perfect as the Universe, that our hopes and prayers remain ineffective and unanswered.

Note carefully that despite the fact that we don’t always get exactly what we want, the vacuums we create are ALWAYS re-filled (albeit, too often with little of any-thing of significant value or importance due to improper planning). It is imperative that when making demands of the Universe that we — 1) know in advance exactly what we need, 2) why we need it, 3) what we’re go-ing to do with it when it arrives, and 4) that we have a place for it. That’s it! Nothing more is required.

One must come to grips with the simple fact that, no matter how many rain dances

we do, or how many gourds we shake at the sky, how many virgins we toss down a volcano neck, we simply cannot control the Universe, we can only seek to understand more about it, and to develop an absolute faith in it.

For example, no matter how hard he might try, a ship’s captain cannot control the sea; but by understanding it, yielding to its power and working with it without questioning it or attempting to change it, he can remain in perfect control of his use of it and allow it to provide all of life’s neces-sities.

It’s only when the good captain would deign to challenge the power of Nature that it would turn against him and fail to assist him in his bidding, even to the point of kill-ing him.

As they say: “A red sky at morning means, ‘Sailor take warning.’ A red sky at night is a ‘Sailor’s delight’ — and the ones wearing blue-blocker sun shades won’t al-ter any of it.”

When we mortals insist on trying to con-trol and direct Natural Law (i.e., deciding how soon, how much, what color, what size, etc.), the voids we create can only be

“No one can ever have a true need that is not fulfilled.”

Success & Natural Law

“No one can ever have a true need that is not fulfilled.”

re-filled with whatever may be at hand at that moment.

In our toothpaste analogy above, it’s only positioning and applying the proper negative pressure that fulfills our desire to undo our mistake. Anything else can only result in the vac-uum being filled with plain old air. That’s the Law!

The Universe can only hear our pleas when we need some-thing… never when we simply want or desire the otherwise seemingly impossible. What-ever we might be asking for, when we ask for a “red one with a white stripe down its side” and the only one available is a red one with a gold stripe, the Universe merely replies: “Sor-ry pal, but your request cannot be fulfilled at this time.”

It doesn’t tell us (because it can’t and couldn’t care less) why. It just fails to yield what we didn’t think clearly enough about before we asked…it doesn’t offer substitutes.

On the other hand, if we are too non-specific in our com-mands, we may indeed end up with more of what we asked for than we bargained for or can properly steward, leading to excess allowing us to give as much of it away as possible…thereby creating another void to be filled with something else of even greater value.

“Why is that?” one might ask. Well (as your father would say, when you were 7), that’s just the way it works! Under-stand it and use it! It’s here for you every single second of every single day of your life. Idle prayers, wishes, hopes, day dreams and even prayers don’t do a thing until they are converted to necessity…and doing so is often the most dif-ficult part.

Persuading ourselves that what we need and honestly deserve is our birth right, is often beyond our capability due to our having been incul-cated from birth that if it’s not on the table…don’t ask for it.

The fact is, however, that if it’s not on the table and you know with certainty that it’s in the cupboard or in the refrigerator just a few steps away, and you need it… you have to reach for it… it will not come to you un-til you do!

It all sounds too simple I know, but the secret to unlock-ing the process and making it work for you is merely — 1) identifying a deficiency in your life that you know with cer-tainty must be eradicated (i.e. lack of wealth, prestige, pow-er, position, love, self-esteem, etc.); then 2) simultaneously relinquishing a corresponding self-serving desire that is rely-ing on that very deficiency for its own existence and fulfill-ment…letting it go! For exam-ple, if one’s deficiency is the ill health and social impact of obesity, then the obvious self-serving need is overeating…once that self-serving need is relinquished the deficiency no longer has nourishment and it dies (i.e., the weight is lost).

Other examples of some debilitating self-serving needs might be: sleeping-in too of-ten; not getting enough sleep, watching too much TV; not reading; not keeping up with the news; procrastination; not studying; complaining and whining; blaming others for your own inadequacies; del-egating your primary obliga-tions to others; smoking; over indulgence in tobacco, nico-tine, alcohol, pharmaceuticals, etc... (i.e., consider the guy who complains about never winning the lottery, who has a moral need to abstain from gambling…then the guy who complains about his poverty, but who can’t resist heading for the casinos every weekend). All-in-all, the fact is that one must always plan in advance for what has to be done, and where the abundance will be housed when in manifests…and know with certainty that it will.


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Everyone Can Become An Entrepreneur, pg. 7

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accepts his past mistakes posi-tively and continues with his present and future in the right direction so that his past shad-ows do not affect his dreams of the future. Moreover accepting the reality of the present situa-tion of what you are, what you have, what you do not have, what you enjoy and what you cannot enjoy.

Thinking about your duties and responsibilities and for the purpose you came to this world all leads to the attributes of becoming an entrepreneur and these attributes are not the ones which are only present in peo-ple who are highly intelligent or intellectual.

These qualities are inborn in every human being all you need is to polish them in an ap-propriate manner.

It should be kept in mind that only those people succeed who have belief in their dreams and this belief is so strong that no

one can shake it from his words or it cannot be affected by the past experiences of the person. Having a positive approach for the future and thinking opti-mistically is the right way for achieving your dreams and it opens up more opportunities for you. Thus, it is now very clear that our past, present and future are all very interlinked and it can be controlled in the manner we want. If we take our past experi-ences in a positive way, then it will definitely lead to a positive future. Whereas, on the other hand, if we make our past expe-riences have an impact on our present and future life, then you cannot achieve your dreams. Entrepreneurship is the same thing as how you deal with dif-ficult issues positively.

Receive Dave Lindahl’s free report, call: 800-559-8590 orwww.DavesOffer.com/Realty411

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call us to Realize your dreams & goals!

night. We have even had guests pay up to $4,000 per night for special events. I have had the opportunity to meet some amazing people.

This year we have been booked with back to back clients. At times we have clients check out at 12:00 and new clients checking in at 3pm. Since this has been such a great experience I now own a $1,200,000 Ocean Front Luxury Condo in Cabo San Lucas, Mexico and a 3 bedroom home with pool in Palm Desert and my Hollywood Hills Baby = www.Presiden-

tialResidence.com.These 3 vacation prop-

erties offer some great benefits:1. Cash Flow 2. Tax write offs3. Networking Opportuni-ties4. I trade my properties with other vacation home owners at NO COST. I

can trade time in one of my properties with someone who owns a property in Hawaii or Europe, etc.5. Build equity via real estate appreciation6. Meet affluent people7. Own a business that requires very little time and management.8. Build a business that I can sell in the future.9. Have FUN

Remember there are 3 necessities in life. #1. Food. #2. Water. #3. Shelter (i.e. real estate). People will always need a place to live, play and work (AKA real estate).

This is why real estate has always been the #1 Investment. But you do need to know how to buy right and invest wisely.

Hector Padilla is the President of HP Capital Investments, Inc. (a real estate acquisition firm) and the Principal Broker of SWI Realty (a boutique real estate company). Because of his limited time Mr. Padilla only consults via “1-on-1 Coach-ing Phone Sessions”. To be placed on his waiting list, please call his office at (310) 204-8971 or email [email protected]

action and used it to pay for some of the remodel. Once the rehab was done the property

looked gorgeous and appraised for $4,000,0000.

At that point I put the prop-erty on the market for a few

months but when I could not get my price I decided to keep it and

move into it. I was living like a Rock Star in the World Famous Hol-

lywood Hills. What a glamorous life!!!Then the reces-

sion hit and my real estate business was affected. But I simply could not part from my sexy home. I recalled the old saying, “... it’s not what happens to you, but what you do with what happens and how you react to it...”.

I have always told my students “Cre-ate More Opportunity Than You Find”. So instead of selling my Sexy Rock Star home I decided to convert it to a “Hotel Alternative for The Affluent” and make it a “Money Making Machine. I decided to offer affluent people my property as an alternative to staying in a boring hotel.

One night I simply sat down and wrote a mini business plan. 1. Hire a professional photographer2. Hire sexy models to portray the Glam-orous Hollywood Hills life. 3. Build an elegant website 4. Create value by offering VIP Services5. Hire a professional to Market the Property6. Complete all tasks within 21 days7. Take bookings and EARN some Honey Money

At www.PresidentialResidence.com I offer my VIP Clients everything from a chauffeured Rolls Royce, Armed Body Guards, Candle Light Dinner, Executive Services, Daily Housekeeping, Breakfast in Bed and anything else our clients desire. Our client’s pay $1,749 to $2,499 per

Would you like to know, how I bought a

multi-million dollar property with NONE of my own money and how at the closing of escrow I received a check for $140,000 BIG ONES?

Back in late 2005 a sharp young real estate entrepreneur by the name of Andy Story brought me a property located in the Hollywood Hills.

A few weeks prior, Andy sent the list-ing agent an LOI (Letter of Intent) and the listing agent literally laughed and rejected what she described as “a ridiculously low offer.”

A valuable lesson I have learned is that time and circumstances always motivate sellers. Long story short the unmotivated

seller unexpectedly lost her husband in an accident and immediately became highly motivated.

Remember this, “People will never give away their equity or money BUT they will trade it for peace of mind”. Lo and behold the listing agent called Andy and said her client would accept his offer.

Andy then assigned his contract to me and I paid him $40,000 at the closing as his “finder’s fee”. You see why I called Andy a sharp entrepreneur?

I opened escrow and agreed to pay $2,000,000. I raised $500,000 in cash from a private investor and took out a 1st Mortgage. I kept $140,000 from the trans-

Cash Flow with Vacation RentalsBy Hector Padilla, Entrepreneur, Broker & Investor

It’s Time to Think Outside the Box!

night. We have even had guests pay up to $4,000 per night for special events. I have had the opportunity to meet some amazing people.

This year we have been booked with back to back clients. At times we have clients check out at 12:00 and new clients checking in at 3pm. Since this has been such a great experience I now own a $1,200,000 Ocean Front Luxury Condo in Cabo San Lucas, Mexico and a 3 bedroom home with pool in Palm Desert and my Hollywood Hills Baby = www.Presiden-

tialResidence.com.These 3 vacation prop-

erties offer some great benefits:1. Cash Flow 2. Tax write offs3. Networking Opportuni-ties4. I trade my properties with other vacation home owners at NO COST. I

can trade time in one of my properties with someone who owns a property in Hawaii or Europe, etc.5. Build equity via real estate appreciation6. Meet affluent people7. Own a business that requires very little time and management.8. Build a business that I can sell in the future.9. Have FUN

Remember there are 3 necessities in life. #1. Food. #2. Water. #3. Shelter (i.e. real estate). People will always need a place to live, play and work (AKA real estate).

This is why real estate has always been the #1 Investment. But you do need to know how to buy right and invest wisely.

Hector Padilla is the President of HP Capital Investments, Inc. (a real estate acquisition firm) and the Principal Broker of SWI Realty (a boutique real estate company). Because of his limited time Mr. Padilla only consults via “1-on-1 Coach-ing Phone Sessions”. To be placed on his waiting list, please call his office at (310) 204-8971 or email [email protected]

action and used it to pay for some of the remodel. Once the rehab was done the property

looked gorgeous and appraised for $4,000,0000.

At that point I put the prop-erty on the market for a few

months but when I could not get my price I decided to keep it and

move into it. I was living like a Rock Star in the World Famous Hol-

lywood Hills. What a glamorous life!!!Then the reces-

sion hit and my real estate business was affected. But I simply could not part from my sexy home. I recalled the old saying, “... it’s not what happens to you, but what you do with what happens and how you react to it...”.

I have always told my students “Cre-ate More Opportunity Than You Find”. So instead of selling my Sexy Rock Star home I decided to convert it to a “Hotel Alternative for The Affluent” and make it a “Money Making Machine. I decided to offer affluent people my property as an alternative to staying in a boring hotel.

One night I simply sat down and wrote a mini business plan. 1. Hire a professional photographer2. Hire sexy models to portray the Glam-orous Hollywood Hills life. 3. Build an elegant website 4. Create value by offering VIP Services5. Hire a professional to Market the Property6. Complete all tasks within 21 days7. Take bookings and EARN some Honey Money

At www.PresidentialResidence.com I offer my VIP Clients everything from a chauffeured Rolls Royce, Armed Body Guards, Candle Light Dinner, Executive Services, Daily Housekeeping, Breakfast in Bed and anything else our clients desire. Our client’s pay $1,749 to $2,499 per

Would you like to know, how I bought a

multi-million dollar property with NONE of my own money and how at the closing of escrow I received a check for $140,000 BIG ONES?

Back in late 2005 a sharp young real estate entrepreneur by the name of Andy Story brought me a property located in the Hollywood Hills.

A few weeks prior, Andy sent the list-ing agent an LOI (Letter of Intent) and the listing agent literally laughed and rejected what she described as “a ridiculously low offer.”

A valuable lesson I have learned is that time and circumstances always motivate sellers. Long story short the unmotivated

seller unexpectedly lost her husband in an accident and immediately became highly motivated.

Remember this, “People will never give away their equity or money BUT they will trade it for peace of mind”. Lo and behold the listing agent called Andy and said her client would accept his offer.

Andy then assigned his contract to me and I paid him $40,000 at the closing as his “finder’s fee”. You see why I called Andy a sharp entrepreneur?

I opened escrow and agreed to pay $2,000,000. I raised $500,000 in cash from a private investor and took out a 1st Mortgage. I kept $140,000 from the trans-

Cash Flow with Vacation RentalsBy Hector Padilla, Entrepreneur, Broker & Investor

It’s Time to Think Outside the Box!

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Meet Our Affiliates, Property Managers & On-the-Ground Team! Both Long-Term Hold & Long-Distance Flip Opportunities.

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