dave lindahl massive passive paperback

Massive PassiveIncome Creator

Dave LindahlsFast-Track System For

Real Estate Profits

ByDavid Lindahl

RE Mentor, Inc.100 Weymouth Street, Building D

Rockland, MA 02370781-878-7114

Copyright MMVIII RE Mentor, Inc.

Legal Notice

This information is designed to provideaccurate and authoritative information inregard to the subject matter covered. It isoffered with the understanding that the

presenter is not engaged in rendering legal,accounting, or other professional service. If

legal advice of other expert advice isrequired, the services of a competent

professional should be sought.

Adapted from a Declaration of Principles,adopted by a committee of the American

Bar Association.

Copyright MMVIII RE Mentor, Inc.

Reproduction or translation of any part ofthis work without permission of the

copyright owner is unlawful and will beprosecuted to the full extent of the law.

Table of Contents

Introduction...............................................71. The Importance of Mentors ...........................14

2. Nuts and Bolts...................................................213. Financing Multi-Family Properties .............31

4. The Importance of Systems ...........................395. Managing Properties to Win .........................496. Getting Great Deals .........................................587. Financial Plan for Your Future .....................66

8. Market Cycles ...................................................699. You Can Do It Too ..........................................8410. Will You Come Join The Fun? ..................9011. Special Bonuses .............................................111

Massive Passive Income Creator by Dave Lindahl

7

Introduction

I want to thank you for taking the time toread this book. I know you're busy. I knowthat you're taking time out of your busyschedule to read what I have to say here, soI'm going to make this profitable for you,right up to the very last page. As a matter offact, what I'm going to offer you is a freerecording of a successful student who wentfrom owning no real estate to a year and ahalf later owning over $1.1 million in multi-family real estate with a great cash flow,doing it all with no money down. So stickwith me to the end and I will show you howyou can get that recording.

I want to show you how to increase yourwealth by investing in multi-familyproperties with the use of market cycles. Atany given time your market's going to be inone of the four phases of a market cycle I'mgoing to show you. Knowing the rightstrategies to use in any particular phase,you're going to make a ton of money. If youuse the wrong strategy in the wrong phase,you're going to lose money. Right now


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there are a lot of markets that are in theprocess of a transition. You can make a tonof money in any one of the four phases ofthe market cycle, even in a very soft market,as long as you're using the right strategies.That's what I'm going to go over in thisbook.

I'm also going to show you the differentadvantages of investing in multi-familyproperties and what they have as anadvantage over other types of properties.

Plus I'm going to show you how you canmake more money faster without dealingwith a single tenant.

You'll see that it's actually going to be easierto buy a three or a four-unit building or evena much larger property. You'll see that it'sgoing to be easier than buying a single-family house.

By the end of this book, you'll see that abigger property isn't a bigger risk. As amatter of fact, bigger means less risk. That'sone of the advantages of investing in multi-family properties. The more units you have


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under one roof, the less risky yourinvestment is.

I'm going to cover the five steps to financialfreedom, which are:

1. How to attract deals. I'm going togive you a very powerful techniqueon how to go out and attract the deals.That means motivated sellers come toyou.

2. I'm going to show you how to analyzedeals.

3. Youll discover how to invest nomatter where a property is in the upsand downs of a market cycle.

4. I'll show you how to create offers withmulti-family properties, how to use amanagement company to manageyour properties and where to find thegood ones so you can get it done soyou're not managing your tenants; andfinally,

5. I'm going to give you one or two verypowerful exit strategies becausewhenever you're buying, you should


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know how you're going to be exitingor how you're going to collect thatmoney when you're getting ready tosell.

I want to tell you a little of my story just togive you a brief idea of how I started. Tenyears ago, I was a landscaper. I'd been in arock band for ten years prior to that. I waslead vocal to the band and I loved being init...but we didn't make any money and thatwas a big problem. I was living in a one-bedroom apartment.

I spent my 20s living in that one-bedroomapartment and basically, (does this soundlike anyone you know?) life was all aboutsurvival back then.

I didn't realize that I was living from day today, paycheck to paycheck, and I didn'trealize that life could be comfortable. Notonly could it be comfortable but you couldactually start taking care of the people youloved!

So when I was running my landscapingcompany, it was about survival. I not onlylived in that one-bedroom apartment, but I


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started my business there. I worked hard forthree years. People told me if you workhard, and put your nose to the grindstone, ina short period of time, you'll get ahead, buya nice car, maybe get yourself a house. But2 years later, I was still living in the one-bedroom apartment and I was stillstruggling.

The main reason was that up here in Bostonwe've got this thing called winter. Itcomes around for six months and, like a badrelative, it hangs around for six months. Inthe wintertime I struggled. I did all kinds ofodd jobs just to get by. Then tax time came.I remember sitting at my kitchen table withmy brother and we were doing our taxes.He looked over at mine and I had claimedless than $16,000 that year. He put his handon my shoulder and he said, "Dave, do yourealize you qualify for food stamps?"

He thought that was pretty funny. I didn'tthink it was funny at all. It was one of thoselife-defining moments for me. I hated thefeeling of being poor. If you hate the feelingof being poor, you're going to love this


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book. You'll love what I have to share withyou.

Fortunately for me, I had a friend who wasworking for a bank and they had foreclosedon a property. The bank wanted to resell itbut they had to do some rehab work on itfirst.

My friend called and asked me if I wanted todo the repairs on it. I had no idea how to dothe repairs. He gave me the repair bid.

I had no experience doing repairs, and I hadno idea what was going on. I didn't buy theproperty, I just got the repair bid. But thatwas how this whole adventure began.

Please dont make a major mistake here: DoNOT say to yourself Well, if I had a friendwho found a deal for me at a bank, I couldget started, too...but I dont, so this wontwork. Thats a great way to never getstarted in real estate.

Ill show you how youre much better offthan I was. Yes, I was handed a deal. Illshow you how to set things up so you attract


13

multiple deals! And can turn on your dealfaucet as often as you like!

Thats waaay better than getting handed onedeal!

So put on your seat belt. What I have to tellyou in the rest of this book can make youpretty stinking rich.


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Chapter 1:The Importance of Mentors

I learned quickly how important it is to havegood mentors. My first mentor was mycousin. He was in construction and hehelped me bid that first bank rehab job. Iwas lucky to have him to turn to, because Iwon the rehab bid with the bank eventhough I had no idea what I was doing!

But I needed the money. Landscaping wasn'tpaying the bills and I badly needed thatrehab job. My cousin showed me how to dothe work. The bank was happy when I wasfinished. They were able to resell quickly.Even better: They asked me to bid a secondjob, and I got that one, too!During the third job I was doing for thebanks, I realized that people were buyingthese houses from some other investor! I didthe work, other people bought them and theywere flipping them. Yes, I made $3,000 or$4,000 on the repairs (which I thought wasfantastic), the people buying the houses


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from the bank were making $30,000 or$40,000! Hey, they were making an extrazero! That kind of money looked like afortune to me!

Brockton, Massachusetts was not a goodmarket at the time. It was what I'll describelater in this book as a Buyer's Market I,which is the bottom of the market. Therewere no jobs. Many properties were on themarket, and they were taking a long time tosell.

Brockton is a very blue-collar city, and theeconomy in Brockton had been slidingdownward for about 15 years. Themanufacturing jobs were gone. The factorieswere closed. Brockton used to be the ShoeCapital of the United States. Even itsnickname was Shoe City. But when themanufacturers left and all of those shoefactories went overseas, they also left behinda lot of empty multi-family buildings fromthe people who used to work in thosefactories. Those people moved away.

I have two questions for you:


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1. Do you think those landlords wereready to sell?

2. Doesnt this story sound an awful lotlike today, when the papers constantlyhave stories about jobs movingoffshore?

That's the type of lousy market I startedbuying in. I realized I had a lot to learn, so Istarted going to real estate investment clubs.I listened to people who had beensuccessful, who'd gone out and done what Iwanted to do. I learned from them how theydid it so I could go out and do it too. (Justlike you're reading this book right now, onlyI had to hunt them down and piece togethertheir advice into a whole system.)

I started getting all types of books and tapes.I listened to teleconferences. Within acouple of months I had enough informationto go out and get that first deal.

There was just one problem.Yes, I was broke at the time, but that wasn'tmy problem. In fact, later in this book, I'mgoing to show you how to do deals of all


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kindsfrom single-family houses to big,million-dollar apartment buildingswithlittle or no money out of your pocket. Somoney wasn't the problem.

My biggest problem was fear. I was afraid todo that first deal. If you're afraid to do yourfirst deal and fear is the only thing standingin your way, I've been there.

Every Monday night, my father and I havedinner. One Monday night I told my father Iwas going to start investing in real estate.

I was really excited. I could see the checksthat were going to be coming my way! Icould just feel how great it would be to walkby buildings that I owned and know that myfuture was secure.

So I shared this exciting news with myfather. I was proud to tell him my plan. Andhe said to me, "What? Are you crazy? Don'tyou know that real estate's a scam?"

I said, "But Dad, it seems like there's anawful lot of people making an awful lot ofmoney."


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He replied, "Oh no, Dave. What if" Myfather listed a bunch of things that could gowrong. To make it worse, he started tellingme all sorts of stories and these storiesweren't to encourage me! I got reallynervous!

Now, I love my dad and he was just tryingto look out for me. He was worried anddidn't know any other way to protect me. Hedidn't know any better and he thought hewas giving me good advice.

But here's what my dad knew: work for TheMan. Work hard and The Man will take careof you. Even then, I knew that wasn't true. Alot of people are finding that out now. As Isaid, I love my dad, but I had to make adecision. So I did. I stopped talking to mydad about real estate!

Then I decided I was going to go out andjust do it.I realized that successful people do twothings that unsuccessful people don't do:The first is that successful people takeaction. This is key. Remember this:


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Successful peopletake action.

The second thing that successful people dothat unsuccessful people don't do is that theycontinue to educated themselves. You'llnotice after you do your first deal: thesecond deal is easier. You've gotten someexperience. It all now fits together in yourhead.

Along the way I continued to get education.I still do. It's worth repeating here:

Successful peoplecontinue to

educate themselves.

I learned this so well that heres how itwent: I started out with that first deal.Within three months I had three more.Within six months I had nine. At the end ofthat first year I'd done 11 deals. But it hadtaken me nine months to do the first one. Iwas afraid to pull the trigger. I'd seen some


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pretty good deals during that time, but fearwas in the way.

The only solution I found to that fear wasaction and education. Those two thingstogether take the risk right out of anyinvestment. With action and education youknow what steps to take. Risk is minimized.I found confidence. Then I found I could goout and do more deals.

My mentors showed me by their experiencethe big mistakes to avoid. That's invaluable.Little mistakes? We all make them eventoday. They can't be avoided.

But when you have a mentor and can learnwhat the big mistakes are, and how to avoidthem, that's priceless.

That's what mentors do for you, and that'swhat education does for you. They show youwhere the big boulders are and how to avoidgetting squashed by them.


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Chapter 2:Nuts and Bolts

"Fools say experience is thebest teacher, but I prefer tolearn from other people's

experience."

Finally, I bought my first deal. It was 25Newton Street in Brockton, Massachusetts.The property was a three-family property,with three bedrooms on each floor. Alwaysremember, the more bedrooms you have oneach floor, the more income you'll havecoming in. That's more money to you.Bedrooms are income.

The purchase price of the property onNewton Street was $140,000. It had apositive cash flow of $572 a month. Cashflow is very important. Every time Imention cash flow through this book, I'mtalking about net spendable income. Cash


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flow is figured after all expenses are paid,and after the mortgage is paid. It's themoney you get to spend on whatever youwant.

I was very excited about having $572 inpositive cash flow on my first property. I'dmade about $6,600 in repairs; things likeupgrading the electrical service and someimprovements to the common areas (thehallways, porches, and basement).

Many of the people I had been learning fromwere investing in single-family properties,but I'd seen an interview on television with aguy named Harry Helmsley from New York.

A lot of people know Leona Helmsley. Shewas known as the Queen of Mean. ButHarry Helmsley was a multi-millionaire realestate investor in his own right.

Harry talked in this interview about startingout buying and selling multi-familyproperties. He ended up owning the EmpireState Building.

During the program, the interviewer said,"Harry, what is it about multi-family


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properties that got you going?" Harry said,"I always like the idea that a group of peoplewould pool their money together and give itto me so I could pay off the mortgage on oneof my buildings."

In essence, the tenants are buying thebuildings for us!

Harry said, "I always liked the idea that thesame group of people would pool theirmoney together and give it to me so I couldpay for all the maintenance on my propertytoo, so I could sell it for top dollar. They'dgive me so much money that, at the end ofthe month, I would have cash flow, money Icould either reinvest, put into a savingsaccount, or perhaps just go out and havesome fun with."

Well that did it for me. Right then andthere, Harry Helmsley got me hooked onmulti-family properties. I thought to myself,"I'm going to go out and I'm going to attractas many of those people as I can find. I'mgoing to have them pay off as manybuildings as I can, and let them give me asmuch cash flow as they want to."


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Sure, some people start with single-familyproperties. There's nothing wrong with that.You should always start where you'recomfortable. But remember this: The roadto wealth is paved with multi-familyproperties.

You can make money buying and sellingsingle-family properties. But if you want tobe truly wealthy investing in real estate,eventually you're going to get to multi-families. Why not just take the shortcut andstart with them? That's what I did.

See, I didn't have anybody telling me at thebeginning, "Whoa. Stop. You've got to dosingle families first." The truth is, you don't.I went straight to apartments.

(By the way, a great many of my students godirectly into multi-family investing beforethey do any other type of investing. I'm notshowing you anything here that you can'tdo.)

I've invested in plenty of single-familyhomes. There's money in those, too. In fact,later on in this book I'll talk more about this,and how selling single-family homes is the


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basis of my Chunker Strategy. It's a greatway to get money, chunks of cash, forbuying multi-family properties.

My point now though, in introducing you tomulti-family property investing, is that Ilearned that this type of property is valueddifferently from single-family properties.With single-family properties, we use what'scalled the comparable method and wecompare like-kind properties to each other todetermine their value.

With multi-family properties, we use theincome approach or the capitalizationrate. That rate is simply the return that youexpect to get on your investment.

The way we figure out that capitalizationrate can be a little bit confusing. So what Idid is I took a complicated formula and Ibroke it down to a simple formula which Icall the Times 10 Valuation Calculation.

This is what you do: You take the yearlyincome, and you subtract the yearlyexpenses not including mortgage. Yearlyincome minus yearly expenses equals yournet operating income, or NOI.


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You'll hear this term a lot in multi-familyinvesting: NOI, net operating income. Ifyou take that NOI and multiply it by ten thatgives you the approximate value of theproperty.

This is a very basic formula you can useover and over with multi-family propertiesto quickly figure out value. So let me sharewith you the numbers on Newton Street.

25 Newton Street:Income $34,000Minus Expenses $15,300= Net Operating Income (NOI) $18,700

$18,700 x 10 = $187,000(So the value of the property in very roughterms is 10 times the NOI.)

Now remember, I actually paid $140,000 forthe property, so with the stroke of a pen, Iprofited $47,000 on that property.


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The best news is that thereare deals like this in every

town in America.

There are deals like this in your town.When I first started looking at multi-familyproperties to invest, I didn't think I wassmart enough.

I was always a C student in math and Iwasn't sure if I could do the math. But whatI realized is I could take very complicatedformulas and I could break them down intovery simple formulas and use them over andover again.

So remember that simple formula. It'scalled the Times 10 Valuation Calculation.

You sure don't need an economics degree todo apartment investing! We'll talk moreabout economics when we get to marketcycles, but I've got a way to simplify thattoo.

I've taken all of the hard work out of thesedecisions for you.


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When you get down to it, the value of amulti-family property is in the incomestream. For every $1 you increase the netoperating income, you increase the valueof the property by $10.And that's just like printing money.In my seminars I give you over 23 differentways to increase your net operating incomein a very short period of time. Increasingyour net operating income increases yourequity very quickly.

Some of those 23 ways include findingproperties that have low rents, or highvacancies, or ones that have higher thannormal expenses.

Then we make a quick changes to theproperty. We increase that cash flow andfor every dollar we spend on the property,we've increased the value by $10. Andwhen you're talking about cash flows of$70,000, $80,000, that starts to be seriousmoney.

Apartment buildings are like moneymachines. You have a property manager in


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place. They're managing that property foryou. Every month that money machine putsa chunk of money into your bank account.

Imagine for a moment that you go shoppingand use a credit card. At the end of themonth, you get a bill. That bill shows aminimum payment due. If you don't pay thetotal bill, that minimum payment goeshigher the next time and the bill gets larger.The next thing you know, every month youget that credit card bill coming in and staringyou in the face until you finally pay it offcompletely.

Now, wipe that experience completely outof your mind and think of this: The nexttime you go shopping, you take with you adebit card and that debit card is linkeddirectly into the account that yourApartment Money Machine fills up. It isputting a chunk of money in every month,every month, which is your cash flow.

Now you go out and start spending. At theend of the month, what don't you get? Youdon't get a bill. You are now free fromcredit card bills. Imagine what that's going


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to be like when you are free from any creditcard statements coming into your house!

And think about this: Lets say you go outand decide to spend all of the money in thataccount for that month. What happens thevery next month? A whole pile of newchecks arrive!

That cash flow account has another month'sworth of deposits.

Apartment buildings are likemoney machines. Apartment

buildings will pay for yourlifestyle.

You decide what type of lifestyle you wantto lead. You then let your apartmentbuildings pay for it. How does that sound?


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Chapter 3:Financing Multi-FamilyProperties

Right after I first started investing in multi-family properties, I thought I needed to be amillionaire. I soon realized that you didn'teven have to be a thousand-aire becausebanks are truly our friends with multi-familyproperties.

If you went into a bank for a single-familyproperty loan, the bank's going take a look atyou, personally. They're going to look atyour personal credit and then they willdetermine whether or not they want to giveyou the money. Theyll pretty much rakeyou over the coals.

That's not the case with multi-familyproperties. Instead, they're primarilyconcerned about the net operating income,or NOI we talked about earlier.

If the property cash flows properly, thebank's going to find a way to get you into


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that deal. It doesn't matter if you've declaredbankruptcy in the last month, six months, ora year. The banks are our friends, when itcomes to apartment investing.

There's a very powerful formula that thebank's going to use: They will take 75% ofthe NOI, and theyll put it on yourapplication as income for you to help youqualify for the loan.

So, let's say that an apartment building hadNOI of $100,000. The bank will credityou with $75,000 toward your income tohelp you qualify for the loan to buy thatproperty!

The bank knows that the tenants are payingback that loan. The loan repayment doesn'tfall on your shoulders. It's the property thatsecures the loan.

But let's go back to this: 75% of netoperating income is credited to you. Canyou see that the bigger the property you goto buy, the easier it is to qualify?

Isn't it awesome to know that you might notbe able to qualify for a single-family house,


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but you could qualify for a 10-unitapartment building that costs way moremoney?

And the best part is you're going to makeway more money than if you just bought thatsingle-family property, because you're goingto have all that extra cash flow coming in.You'll have all that additional appreciationwhen that market goes up.

Do you know why they call these multi-family properties?

Because multi-families make multi-millionaires. Simple as that.

When I first started, I had no money. I was29 years old. I had less than $800 in thebank and I had gone to a seminar. In effect,it had taken me 29 years to save that $800,so the first thing I didn't want to do wasblow it.

I knew that I was going to need more than$800 to get into these apartment buildings,but I also knew that I didn't have it. So I hadto go out and find other sources.


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The first thing I did was go to a seminarwhere the speaker said, "Get as many creditcards as you can. Get the ones with the non-recurring fees. Use those for your deals." Idid that. I used those for my first two dealsand then I ran out of credit card money.(Im not advising you to do this, but Imexplaining how I financed my first few dealsthe hard way.)

The second thing I learned is that I could goup in front of my real estate investment cluband I could tell them about the deal I hadavailable.

For instance, I might have a three-familyproperty that was selling for $500,000 and Icould buy it for $350,000. It needed$20,000 in repairs and I needed $20,000 toget into the deal. The profit on the deal was$98,000.

I would go to my real estate investment cluband talk about that deal. Afterwards, 7 or 8people that would follow me to the back ofthe room. They wanted my deal likepigeons after a French fry from McDonald's!


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Thats how I would get partners for mydeals right away.

You bring the deal to the table. They bringthe money and you split it 50/50. That'show I started getting into my deals at thevery beginning. (I have since created 27different ways to buy multi-familyproperties with no money down.)

Within a very short period of time, I hadcreated a $10,000 a month positive cashflow coming into my apartment. That was abig change for me.

I had also become a multimillionaire withinthe first three and a half years!

I had learned this: that even though I nowhad money coming in, the more deals that Icould get into with the least amount ofmoney down, the wealthier I was going tobecome.

That is the Wealth Formula. Remember it:


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The more deals you canget into with the least

amount of money down,the wealthier you will

become.

Dozens of deals later, I am still getting intodeals with no money down but now thedeals are bigger. I just recently closed on172-unit apartment building in an emergingmarket in Texas. The property sold for $7.2million. I had two investors put up $1.625million to get us into the deal. They put upthe money. They get 50 percent of the deal.I brought the deal to the table. I get theother 50 percent.

No money down deals work for everyone.They're not just something you see on late-night infomercials.

You may say: "Dave, where should I start?Should I start small, medium, or large?Must I do big deals at first?" The answer isno, you don't have to do big deals. Its a


37

common fear: Doing Big Deals can feel atfirst like youre just making a Big Mistake.

One of the things I always recommend isyou should be a conservative investor, andonly take calculated risks. But I'll alsoshow you that it's much easier to do thebigger deals than it is to do the smallerdeals.

You may want to start small like I did. Forthe first three and a half years I was onlybuying 3- to 6-unit properties, mainlybecause I was afraid to buy the bigger ones.

Then I got to a point where I had too muchappreciation in my properties when I wasflipping them. I had to buy biggerproperties because that's how much cash Ihad!

Start where you're comfortable. By beingcomfortable and understanding the systems,youll quickly get into the bigger deals.

The best part about those big deals is theextra zero at the end of every one of thoseprofit checks that you get. Same amount of


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work, but one extra zero makes a bigdifference.

It's really remarkable what just that one littledigit will do to your bank account andlifestyle!


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Chapter 4:The Importance of Systems

When I ran out of that credit card moneyand when I was doing those partnerships atthe very beginning, I thought to myself,"You know, I'm bringing in the deal andgiving up 50% of the cash, which is betterthan not doing a deal...but I wonder iftheres a way to not give up so much cash?"There was.

Ive since named it my Chunker Strategy.Its this:

1. Buy a single-family property.

2. Flip it.

3. Use some of the money to live today(because my landscaping companycertainly wasn't doing it.)

4. Use the rest of the money to put adown payment on a multi-familyproperty. It will then create a chunk


40

of cash flow coming into my house,month-in and month-out.

I became an expert at buying and sellingsingle-family properties. I still do it today.I've got complete systems on how to do itand have very little involvement now.Thats because I make so much more moneyin my multi-family properties.

Still, its nice every month to get three orfour checks coming in at $20,000, $30,000,or $40,000 a pop! So it's just anotherincome stream coming in basically.

I created the systems to do this. They'reautomatic. There's no reason to give up thesystems, even though I'm doing biggerdeals. You just learn to delegate and that'swhat my systems are all about.

In both multi- and single-family deals, it'sall about automating and having checklists.When I first started, it was just me. But as Icreated systems, I was able to replace myselfwithin my own company.

At the very beginning, I got some greatadvice to use a management company, but I


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didn't take that great advice. I managedproperties myself at the beginning.

Knowing what I know today, I would havestarted right out with managementcompanies because that would have savedme a lot of time. It would also have givenme the ability to buy even more properties!

You don't need a whole staff to do thisinvesting from day one. You start we allstart with just ourselves. Hey, I started ina one-bedroom apartment on the secondfloor. I had less than $800 in the bank, and Iowed much more in credit card bills at thetime, so I was in really a negative cash flowsituation.

But you start by going out there and gettingyour first deal and you begin to createwealth. The systems are already created foryou (you lucky dog). I just hand them overto you. You just follow the systems and asyou grow, your company will grow.

Some people want a big company and theywant a lot of people working under them.Others don't care. You can do either one.


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Let me tell you a story about a guy by thename of Reginald Pasteur. Hes a father oftwo. Reginald was tired of working tenhours a day for his job. Tired of commuting45 minutes to work every day. Tired ofgetting home just in time to kiss his kidsgood night.

So Reg went to a convention in Baltimore.They had a contest that if you listened to oneof the speakers, got his or her system, andthen went out and used it, (i.e., took action),they put you in a contest to win a DodgeViper. Its one of those sleek, testosterone-filled sports cars.

Sherman Ragland, who was running thatconvention, emailed me and he said, "Dave,you're going to be interested in thistestimonial that I just got over the email. Itsaid:

"Dear Sherman, Please consider me inthe contest for the Viper. I attendedyour convention and listened to anumber of speakers. The only personthat seemed to make sense was DaveLindahl. So I invested in his training.To make a long story short, I bought a


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four-family property for $134,000 andit's now worth $200,000. I refinancedthat property and bought two more, afour-family for $205,000 and anotherfour-family for $300,000, both ofwhich have appreciated rapidly. I thenbought a nine-family. I now own $1.1million in multi-family real estate, allbought with no money down and I havephenomenal monthly cash flow. Thankyou, Sherman, and especially thankyou, Dave Lindahl. Sincerely,Reginald Pasteur. P.S. Please considerme for the Viper."

He's simply took action. That decision hemade has dramatically changed the qualityof his life.

My system works when somebody has afull-time job like Reginald. That's the bigthing: It works with people who areworking full time. It had to, because it gotme started in real estate investing when Iwas working as a full-time landscaper,utterly exhausted at the end of the day.


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Eventually you can make a decision whetheror not you want to stop and become a full-time investor and quit that day job.There are three reasons to be in real estate.Number one is money today. Money todayis the money you get from flippingproperties. You can flip both single-familyand multi-family properties.

What you decide to do with that money willdetermine how you wealthy you are downthe road.

If you put your money into multi-familyproperties and start creating monthlyincome, that's the second reason. Themoney monthly comes from that positivecash flow.

That positive cash flow equals freedom. Itallows you to do what you want to do andmake decisions in your life that you didn'thave before that money started coming in.

The third reason is money later. It comeswhen just like Harry Helmsley said itwould your tenants pay down themortgages on your properties. Your tenants


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make you wealthier. They dig into theirpockets and hand you money that you giveto the bank. But you only have to give someof it to the bank. The rest of it you keep inyour pocket as positive cash flow.

I just want to circle back a little bit to thecomparison between apartments and single-family homes. The first benefit is cash flow,just like I was just talking about.Cash flow equals power and power equalsfreedom. I own 3,447 units in 24 differentcomplexes. So every month I have 24chunks of money coming into my mailboxmonth-in and month-out.

Regardless of what I decide to do, thosechecks are going to continue to come in.

If I decide that I'm going to take off and goto some nice warm island in the winter foran extended vacation, those checks are stillgoing to come in.

If I want to go out with my buddies and playgolf for days on end or maybe go to the mallwith my sister and watch her shop (thatwoman has a black belt in shopping) and


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we blow all the money, those checks comeback in.

If I go to Vegas next month and blow allthose checks, what's going to happen thevery next month? Those checks come inagain!

I am powerless to stop those checks fromcoming into my house month after month.

I want you to experience the exact samefeeling. Imagine what it will be like whenyou have a fistful of checks coming intoyour house every month. What are yougoing to be able to do next month that youcan't now do this month? What decisionswill you now be able to make? What canyou now do for your family? What can youdo for yourself?

That's why cash flow is so important.

You can do this part time because as you'reat your day job, youll be hiring good-quality companies to manage yourproperties.


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When I first started, I thought I wasn't goingto have enough time to do this business andthen I realized that it really only takes ahalf an hour a day, four days a week,which is literally two hours a week to getstarted investing in multi-familyproperties.

It takes just a little bit of time. You'll beconcentrating on your marketing and onyour analysis. Focus on my Times 10Valuation Calculation to find the right deal.

Once that right deal comes in, well, then youtake the next step that I show you.

Now youll be spending a little more time,but now theres a live deal youre workingon! As you do more deals, you'll bespending more time. Youll also berewarded with more cash flow and moreequity.

Then you're going to have the ultimatereward: Youll be doing this so much thatyou can quit your full-time job and makereal estate investing your ticket to whateveryou want.


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Isnt that the whole point?


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Chapter 5:Managing Properties to Win

At my most recent boot camp, I was sittingdown with a couple that had just movedfrom Las Vegas to Texas. He had a windowand door company that was very successful.He sold that business and decided he wantedto get into real estate investing.

He said after looking at the different types ofinvesting that were available, he realizedthat he wanted to do multi-family investing.They wanted a lifestyle where they couldjust go away for a month or two, and thencome back and pick up where they left off.

You buy, create cash flow, buy, create cashflow, and then you can stop. If you go to anisland for three months, that cash flow willstill come in. Your management companywill be closely managing your properties.Then you come back and start the buyingmachine up again.


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It truly is a business where you can stop,start, and stop whenever you want to. Youhave freedom.

When you use a management company youwont get the midnight call from the tenant.The management company is one of the keyplayers on your team.

There are some management companies thatjust aren't that great. So we need to get thebest possible management company.

I own properties in eight different statesacross this great country. Whenever I gointo a new particular city or a new state, Ialways go to the same source to get the goodquality management companies: Its:http://www.irem.org That stands for theInstitute of Real Estate Management.

On that web site irem.org you're going topull up two different designations. One is aCPM, Certified Property Manager. Theother is an ARM, Accredited ResidentialManager.

The best part about this web site isregardless of where you're investing, you


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can put that city in here and it will give youthe contact information for all the CPMs andthe ARMs. (If your city isnt listed, then trythe closest bigger city to yours. Oftenmanagement companies will cover largeterritories.)

These are people who must take fivedifferent courses and pass five different testsin order to get these designations. They arethe cream of the crop.

When I go to a new city I'll pull up two orthree different names and contactinformation. I start calling them but, I'velearned to ask a series of carefully phrasedquestions.

For instance, I always ask a managementcompany, "How many properties do youown that are like mine?" Typically, they'rethinking that I'm asking that questionbecause I want to know if they're qualifiedto manage my property. But that's not whyI'm asking it.

I learned through the School of HardKnocks that every time that I hire amanagement company that owns properties


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like mineand we both need tenantstheyget the good ones and I get the leftovers.

Never hire a management company thatowns a property like yours. You wantcompanies that manage properties likeyours. Very important.

In fact, in my live event I cover 27 differentquestions to ask property managers. Theseare the 27 that will ensure you get theabsolute best management company.Theyll get you maximum profit out of yourproperty. If they pass these questions, youknow they're a good company.

What I hear frequently from my students isthat the management company at the end ofthe interview says, "Nobody has ever beenthat thorough with us."

Half the time you don't even make it throughthe questions because they just eliminatethemselves from the process. Those are thebad ones. The cream just rises right to thetop.

When you're working with a professionalproperty manager, there are a number of


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reports you'll get each month. There's anincome and expense report that's going tocome in, and it will take you about fiveminutes to read.

When you see this report you want to have itset up so that you can see all the previousmonths next to each other. You want tolook at income and how it compares monthto month.

Then youll review expenses. Its importantto be able to track trends. If the income istrending up, you just have one problem.You know what it is? How to spend thatmoney. That's one great problem to have!

But seriously, if your report says that profitsare trending down, then it's time to call themanagement company, and hold their feet tothe fire. Ask them, "What do we need to doto get those last few units rented?" or "Whatdo we need to do to get those expensesdown a bit?" It's the management companythat does all the hard work and heavy lifting.

Earlier I talked about how you protectyourself from those midnight phone callsfrom tenants. When you use management


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companies you don't get any of those phonecalls. The company does.

I can just hear somebody asking, "Dave, ifI'm buying a 110-unit apartment complex,I'd get a management company. But howam I going to get one if I just have a smalldeal?"

The right management companies willmanage your two-family properties, all theway up to the big ones. There are goodqualified management companies in everyarea that will do that.

As I say, cream rises to the top. Youinterview them and find out who the rightmanagers are. I go into that a lot more at mylive events.

Now I'll be honest with you: It's easier tofind a management company for the 110-unit property (but managers of small dealsstill can be found).

Remember when I said it's easier to do thebigger deals than the smaller deals? That'sone of the reasons. Banks like the biggerdeals because they'll make more money.


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But that should not discourage you fromdoing a small deal.

As you will recall, I started with the smalldeals. For the first three and a half years Iwas only buying three to six-unit properties.

You're probably going to start small and willwork your way up. But I bet youll get bigfast because you're spending time right nowin understanding the systems to make realestate profits. Youll know what to look outfor. That's going to help you catapultyourself to high levels of income and equity.

It will help you take a quantum leap, notonly in your investing but in your incomestream.

And a lot of people ask me, "How muchshould you pay a management company?"or "What are their fees?" The average feefor a management company is 10% of grosscollected rent.

Notice I said "collected". If you pay yourmanagement company based on a minimumfee, you're making a big mistake. Why


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should they get paid for rent they haven'tcollected?

You're going to have a lot of fun doing this.I will show you how to make it pleasurable.I'll explain how to have wonderfulrelationships with your managementcompanies, because if you do it right,investing in real estate can be a lot of fun.

Wouldnt it be great to have fun AND makea lot of money at the same time!

John Winkles wrote me from Pittsburgh. Hesaid:

"Dave, my wife and I were skepticalabout buying rental units and up to thispoint, we have only been doing single-family flips. After hearing you, wesigned our first contract within fivedays of going to your live event. It wasfour-unit apartment building. Theseller was very motivated. We offered$78,000 and financed it for $80,000."

Isn't that amazing? Not only will I showyou how to get into these deals with no


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money down, I'll explain how to get paid atthe closing as well.

John then says, "We have a positive cashflow of $510 a month. Only five more likethis and my wife can quit her J-O-B at thepost office."

You know what JOB stands for, right? JustOver Broke.

The next chapter is all about getting greatdeals with money in your pocket at closingjust as John did.


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Chapter 6:Getting Great Deals

There are so many different ways where youcan actually walk away from a closing withmoney in your pocket.

As a matter of fact, I'm going to tell youabout one of my students a little bit later onin this book that walked away from theclosing with some really big checks.

First, let me tell you another advantage ofapartments over single-family houses: tax-free money. When you're doing a multi-family building, you can do what's called a1031 tax deferred exchange.

Here's the general idea of how this works:You sell property A, and get to defer allthose taxes so you're not paying any taxeson your profits.

That allows you to buy a bigger property Bbecause you have a bigger down payment.That will give you a bigger cash flowbecause you're buying a bigger property B.


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After you sell B, you can take all the profitsand put it into C and that will allow you tobuy a bigger property C and create an evenbigger cash flow.

It will be a combination of 1031 exchangesand market cycles that will allow you tocatapult your way to wealth in a very shortperiod of time.

The 1031 exchanges are an exit strategy andthey're very important. They're so importantthat I want to give you some moreinformation on them right now.

1. You need to have what's called a like-kind exchange. That means you must gofrom real estate to real estate multi-familyto land, commercial to multi-family, single-family to multi-family as long as it's like-kind.

You can't sell real estate to buy stock orother securities. You sell real estate to buyreal estate.

2. You need to use an intermediary. That issomebody who does all the paperwork(which is great because we don't want to do


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it). The intermediary holds all the funds andtransfers the funds. Two goodintermediaries are Starker Services andChicago Title.

3. When you sell property A, you've got toidentify property B. Its the property thatyou're going to replace property A with it'scalled the replacement property. And youmust do so within 45 days.

When you sell property A, you need to closeon property B within 180 days.

You do those first four things and then youget to have Number 5, which is createmassive wealth in a very short period oftime.

The 1031 Exchange isn't some shadyloophole that the IRS is going to catch ontoand then shut you down. The IRS wrote it.

Here's another advantage of multi-familyproperties: You can do fewer deals andmake more money.

Here's what I mean: in your average single-family flip your profit might be between


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$3,000 and maybe up to $20,000. For thesake of this example, let's say it's $20,000.But your average multi-family flip, mediumsize, between 30 and 50 units, can give youa profit of $200,000!

You'd have to do ten single-family flips tomatch that one multi-family deal! I dontknow about you, but I dont want to workthat hard.

I'm fond of the idea of doing that one singledeal, and getting the money that it mighttake a pure single-family investor a wholeyear to get.

Let me tell you about another student. Hisname's Michael Perkins. He is 52 years old,and was concerned about his retirementbecause his company was downsizing andstarted outsourcing. If it happened to him,he wanted to be able to maintain his familyslifestyle.

Mike came to me and said, "Dave, I'm goingto create passive income through multi-family properties and then regardless ofwhat happens to my job, I know I'll have


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that income coming in." I said, "Great idea,Mike."

I mentored him through his first deal, whichwas a 32-unit apartment complex. This waslast April. He called me up, all excited onthe phone. "Dave, I'm so excited. I'm goingto be closing next week."

"That's great, Mike. I'm excited for you."

He said, "Yeah, but you know what? I justrealized I'm going to be closing twice."

"What do you mean you're going to beclosing twice, Mike?"

He said, "I'm flipping the property. I'mgoing to resell it."

I said, "Mike, your goal was cash flow.You've got a great property. It's in anemerging market. Why are you flipping thatproperty?"

He said, "Oh, I'm flipping the property andI'm making a $212,000 profit, and then I'mputting it into a bigger building and creating


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an even bigger cash flow just like you taughtme."

Smart guy.

Ten years ago, I was a landscaper and Iwanted a better life. Let's face it: Thereason why you're reading this book rightnow is because you want a better life. Icreated a simple step-by-step system thatallows you to duplicate those results.

Whether you decide now to get involved iscompletely up to you.

Let's talk about less risk. With a single-family property, you lose that tenant andyou've lost your whole income. A hundredpercent of your cash flow, gone.

But if you have a three-family property andyou lose a tenant, you still have two moremaking your mortgage payment. On thesingle-family, you're making the mortgagepayment. If you have a ten-unit property,and if you lose two, you still have themortgage payment being made. You stillhave the cash flow coming in.


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Can you see that the more units you haveunder one roof, the less risky yourinvestment is? And remember it's themanagement company that keeps the unitsfilled.

The management company will give you amarketing plan. This plan does a few thingsfor you. First, it tells you how themanagement company will take care of yourbuilding and tenants.

But it does another great thing. If youregoing to a bank for financing, and have noprior experience, it makes the process easier.

Your management company will give youits resume, marketing plan, and projectionsfor the next three to five years. Its an entireplan on how these professional managerswill keep that property full.

I show you at my live event how you putthat package together, to give to the bank.

Then you say, "Mr. Banker, I understandthis is my first deal and I understand that Idon't have experience. That's why I hiredXYZ Management Company that has over


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ten years of experience and is managingover 5,000 units."

Your banker will most likely say that itsounds like a professional approach. He'sgoing to look at you from across the deskand hell realize that hes in front ofsomeone who came prepared.

That makes all the difference, in myexperience!


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Chapter 7:Financial Plan forYour Future

I was reading Forbes magazine the otherday and I learned an interesting fact. Thenumber one fear of middle-aged Americansis running out of retirement money.

So right now, figure out how much you needto retire comfortably each month. Do youneed $10,000 a month positive cash flowcoming in? That's $10,000 spendableincome. Is it $20,000? Is it $50,000 or$100,000?

Choose your monthly retirement income.Now determine how many units you need toget that cash flow coming in each month.Then you apply my system as many times asnecessary to acquire those units. Onceyou've acquired them, you're done.

For the rest of your life, you're done.


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It doesn't matter if you're 18 years old or 72.You are now done and for the rest of yourlife. That income will appear month-in,month-out, year after year.

I've got some students who are really young.One guy in Norfolk, Virginia did 20 unitswhen he was 18 years old! Cant rent a caror buy a drink, but hes got 20 apartmentunits!

Another fellow is going to Johns HopkinsCollege right now. Hes a full-time collegestudent who made over $140,000 in his firstseven months. Something tells me theyrenot going to be looking for your typicalcollege-student summer job!Retirement is about money. It's not aboutage.

These guys aren't going to be stuck living on$10,000 a month 40 years from now.

Your income is going to be going up everyyear because you will be raising those rents.Your tenants expect you to raise the rentsevery year, so why disappoint them? Raisethose rents.


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Your tenants will also be paying down thatmortgage month after month, so not onlywill you have more money coming in everyyear, but the property is being partially paidoff each year. That increases your overallwealth.

Isn't that a better way to retire than countingon our social insecurity system?

To this point, out of the five steps tofinancial freedom, I've taken you throughanalyzing the deals. I gave you a verypowerful formula. We've talked aboutmanagement companies, how to get thegood ones, and what to pay them. Wecovered a very powerful exit strategy, whichis the 1031 exchange.

You should now realize that you can do this.It's easier than you thought. And you caninvest with little or no money down.

You don't need good credit and it's less riskythan single-family properties. Not only that,you can do fewer deals and make moremoney. I've got just one question for you:Are you ready?


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Chapter 8:Market Cycles

I want to show you that that my systemworks in all different markets. You canmake money in any city and in any marketcycle in America.

What my students tell me is I'm the onlyperson out there teaching the phases of themarket cycle and how to recognize them.More importantly, I talk about how to usethe right strategy in each particular cycle.

There are four basic phases of a marketcycle. Many people right now are in slowermarkets. Some are in emerging markets.

What you're hearing on the news these daysis how the real estate market is changing.

The good news is that slow markets are thebest time to be in multi-family properties.Thats because as homes become over-supplied, people stop buying them. Theystay in apartment buildings, and that meansoccupancy increases.


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We also know there are a lot of foreclosurestaking place. When people get foreclosedout of a property and there's a hugenational wave of foreclosures going on now those people go back into apartmentliving.

This is one of the best times to be inapartment buildings. The Wall StreetJournal said, "Multifamily properties arefast becoming the real estate investment ofchoice for the savvy real estate investor."

There are four different phases of a marketcycle. They are:

1. Seller's Market 12. Seller's Market 23. Buyer's Market 14. Buyer's Market 2

You can think of these phases like a rollercoaster going up and down. The importantthing to know is that these phases never skipeach other.

They never go from one phase and jumpover another phase. Knowing that they're


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cyclical predictable allows you to plan yourstrategies accordingly.

Let's start with a Seller's Market 1.

In a Seller's Market 1, the supply ofproperties dwindles. Properties are sellingfast. Unemployment is low. Prices of rentsare rising and demand is at its highest pointin a Seller's Market 1.

That's very important. That's the keycharacteristic. Its so key because itdetermines our strategy, which is to buy andhold long term, or to flip.

This is the only phase you can do both majorstrategies: buy and hold long term, or flip.

For example, I bought a three-familyproperty in an early Seller's Market 1. Ibought it for $224,000, sold it for $320,00013 months later, and profited $86,000.

The important thing to note is I held it for 13months. Thats because I wanted to pay lessin tax. Any holding period over 12 monthsmeans you pay tax at a greatly reduced rate.


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Think about this: I went to one closing and Ibought one property. During the entire 13months, those tenants paid that mortgagepayment each month. During the entire 13months, those tenants paid for maintenanceon that property, and for a managementcompany to care for them.

I bought the property. I handed it to themanagement company. That cash machinestarted depositing chunks of cash into mybank account so I could use my debit cardmonth after month after month.

On the 13th month, I sold that property andgot a check for $86,000.

Think about it. How long does it take you toearn that amount of money? How muchblood, sweat and tears goes into that? Isntthis a better way?

One of the ways I get deals like that is witha letter campaign. They are the fastest wayto attract motivated sellers. You're notfinding them. They're finding you.

One of the important parts of the campaignis the actual list of names itself. If you don't


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have a good list then you're really not inbusiness.

There are many different sources of lists.Heres one: Go to where your landlords areevicting their tenants. That's either housingcourt, small claims court or district court.Get what's called the summary processlist.

That list is all of the landlords that areevicting tenants. Mail your letters to thatlist. It will give you a higher than averageresponse. It can make you wealthy.

You will get many landlords that are fed upbecause they have their tenants in evictioncourt and they just want to be out of theproperty. (They dont know the right way toown apartments, using managementcompanies.)

Sandra Nesbitt wrote me to say:

"Dear Dave, Am I glad you came intomy life. I sent my first mailing toburned-out landlords from the districtcourt and took over a ten-familyproperty that was in pre-foreclosure.


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The owner was fed up and had enoughand just wanted out of the property. Isent 86 letters and got 6 responses.Those letters cost me a total of $57. Atgetting a current market analysis fromtwo different brokers, I realized that Ihave about $147,000 in equity in theproperty."

Was that a fair trade? Knowledge of mysystems and 57 bucks for $147,000 inequity?

I don't want you to worry now about what towrite in these letters. Remember, regardlessof what business you're in, you're actually inthe marketing business. What I do is Iprovide you with a set of proven letters.

It's a system of proven letters that areguaranteed to get motivated sellers to beattracted to you. All you do is mail theletters and the phone will start ringing.

When I say they're proven letters, thatsbecause I'm constantly trying new letters tosee which ones have the highest response.The ones you get at my live event are theones that bring in the very most sellers.


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After you send them out and the phone startsringing, I give you a script that tells youexactly what to say and when to say it.

I realize that one of your fears might be thatwhen somebody calls you, you're not goingto know what to say. Thats why with myscript, I have you speaking the seller'slanguage from the get-go.

What would that do for you, knowing thatno matter who calls you, youll knowexactly what to say and when to say it?

No more fear on the phone! It will give youthe confidence to know that you can justfollow some easy steps and get the dealdone.

Let's go to Seller's Market Phase 2. This isthe risky time in the market. Its when themarket starts to slow down after a period ofemergence.

Properties start staying unsold on the marketfor longer. The number of properties on themarket increases. Sellers are still gettinginflated prices but it's taking longer to getthere.


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Business and job growth begin to slow.There are two things in this particularmarket I want you to note. Number one, themarket's over-supplied with properties.

Number two, business and job growth beginto slow. Your strategy in this market is toflip. You don't want to be holding anythinglong term here.

You flip and turn your properties into cash.Then you can hold onto that cash until yourmarket corrects and stagnates and cash isking in a down market.

Or you take that money and do what a lot ofmy students are doing: Move it into anotheremerging market. Then youll watch yourmoney double, triple or even quadruplebecause it's riding the wave in that newemerging market.

People ask: "How long does an entiremarket cycle take?" Market cycles typicallytake anywhere from 8 to 15 years. Eachphase within the market cycle lasts from 3 to5 years.


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Now let's go to a Buyer's Market Phase 1,the next stage of the cycle. In a Buyer'sMarket Phase 1, prices of rents will fall.Demand is falling. Unemployment is at itshighest.

Investment properties are at their lowestlevels and in this particular phase you'reonly buying properties that have greatcash flow.

There's one thing that will turn this marketaround and that's jobs.You should always be following jobs. Lookto where people are migrating because that'swhere the markets are moving.

In my live events, I give you 14 differentsources to determine where those jobs aregoing. I'll give you one right now. Go towww.census.gov The Bureau of LaborStatistics in there will give you an idea ofwhere some of the jobs are going.Once you realize that jobs are just starting tomove into a city, well, now it's time to go inand start investing. You've got people thatbought at the wrong time, and there haven't


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been a lot of buyers in the area for a while.The sellers are just looking to get out.This is a market like Flint, Michigan wheremy students, Kristy and Kevin Frue are.

Their first deal after leaving my event was51 units. They got it for no money down.They got $52,000 a year cash flow. TheFrues walked away at the closing with$32,300 in their pocket!

People think: "Flint, Michigan. There'snothing happening there." Yeah. But a fewpeople can read and recognize the trends,and thats what I show you how to do.When markets first start to emerge, you're acontrarian investor. You're buying wheneverybody else is selling. Then whensuddenly the momentum starts to pick up,people recognize what's going on and lots ofinvestors come into the market.

I show you how to get into that market asearly as possible. That way, you get all thelow-hanging fruit as you go through thatorchard of profits.


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Imagine that: Your first deal after leavingmy event and you get a huge check. Andyoure not dealing with any of the 51tenants, because the management companyis. On top of that, you get $52,000 inpositive cash flow.

What's your return when you put no moneydown and get $52,000 a year?

Your calculator cant calculate what areturn on zero investment is, because itthinks its infinite!

My students and I do this all the time.

Let's talk about a Buyer's Market Phase 2.That's the millionaire maker. In thisparticular market, time on the marketdecreases. Job growth increases. Pricesslowly increase and, more importantly, thisis when rents have started to increase for thefirst time.

This is when you buy and hold. In a veryshort period of time three to five years you will become a multimillionaire.


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It takes just one of these markets and you'rea multi-millionaire...but you know what?After I show you how to do this over andover again, you're not going to stop at justone market. You'll do this again and again,from the luxury of your own home.

People ask: "Do I have to travel all aroundthe United States?" You don't.

Here's what to do: First thing is determinewhere the jobs are going. When you do that,you're going to call that particular city, talkto their chamber of commerce, and find outwhat's going on in there, what jobs arecoming in. The more white-collar jobs thebetter.

Then you make contacts over the phone. I'llshow you how to make contacts withbrokers, with property managers, andappraisers. If you follow my methods,theyll start sending you deals.

You then take some easy steps to negotiatethat deal. You put it under contract usingthe fax machine.


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So far, everything has been done by phoneand fax. When you get it under contract, theseller's going to give you what's called duediligence. He's going to supply you withall of the facts that say, "Yes, this is the trueincome and these are the true expenses,"because remember we're buying incomeproperties.

If he can't supply you with those facts, or ifthose facts don't come in right, then younegotiate for a lower price. Sixty percent ofthem will negotiate; forty percent will justsay take it or leave it, in which case youleave it.

First you negotiate for the lower price (if thefacts dictate it) and only then do you godown and do a property inspection.

You go through the property, using thesystem I give you. Youll take a look at itwith your property inspector, banker, andyour management company. They'll meetyou there. Then you go home.

The bank will do just about all thepaperwork. They will FedEx you a package.


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You then sign it in front of a notary public,and FedEx it back.

You now own the property!

What do you do next? You'll hand it to themanagement company, and you celebrate!

But to tell you the truth, you wont celebratefor long.

Thats because youll be too excited to sitaround. You will want to plug in thosesystems again and make another slug ofmoney, now that you see how the wholething truly works in your town.

I've become an expert at finding the Buyer'sMarket Phase 2 millionaire maker marketsthroughout the United States.

There are at least 30 to 40 of them at anygiven time. In my live event, I actually takeyou step by step through how to find them.I not only show you how to determine wherethese markets are, but I also give youbetween 20 and 25 markets that areemerging right now across the U.S.


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One or more of them will be not far fromyou.

There are other important goals too, but isntfinancial freedom a biggie? But can weretire off of a million dollars these days?

Let's talk more about this in the nextchapter.


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Chapter 9:You Can Do It, Too

There are many good courses and bootcamps that teach you how to become amillionaire.

The problem is that you can't retirecomfortably off a million dollars these days.

You should instead become what's called adeka-millionaire. (Thats Greek for ten).Shouldn't your goal be $10 million or more?

What if you failed and only got halfwaythere? I think that would still be not so bad.

One of my students, Jim Anderson,contacted me. Jim's from San Francisco.He said:

"Dave, thanks for the great boot camp.Just thought you'd like to know mylatest acquisition. Because of what Ilearned with the 1031 exchange, Itraded in a single-family house inwhich I had a lot of equity for a 40-unit


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complex in Bakersfield. I bought theproperty for $900,000 and after justtwo years of holding it, it's now sellingfor $2.4 million. That's a profit of $1.4million. Best of all, I had a monthlypositive cash flow of $4,100 per monthwhile I owned the property."

I've got another student, Victor Bell. Helives in Hawaii and spends his time buyingand selling properties on the Mainland.

Half the time he doesn't even go see theproperties because he says, "Dave, I live inparadise. Why should I go somewhere else,and leave this! I'm only going to go if Ithink I can have fun there in some new city."

I thought, "Hey, what a concept."

Imagine the next time you go to yourfavorite place on vacation. First you attracta multi-family property that cash flows withone unit always being vacant. Who do yousuppose will use that unit? You!

Plus, you can make every trip down theretax deductible. You can now go eat at thefinest restaurants and it's all tax deductible.


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It's a good life. Imagine the lifestyle you'regoing to have when you own properties inSan Francisco, Vegas, Orlando, andwherever else you like. It's often great uphere in New England.

To summarize, we talked about attractingthe deals. You know that you can start aletter campaign and get those deals comingto you.

You know you can analyze those deals byusing the Times 10 Valuation Calculation.

You also know you can analyze the marketby applying my market cycle methods andthen using the right strategies.

When we create offers with multi-familyproperties using a simple document called aletter of intent (which I discuss at my liveevent). You then use IREM, irem.org, to getgood-quality companies to manage yourproperties.

You apply the 1031 tax-deferred exchangeconcept to swap up to larger deals, tax-deferred.


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You should now realize that you can do this.The smoke is gone and you can see clearlythrough the glass.

Janet Schroeder wrote me:

"Dave, since I came to your real estateseminar in May, my life has changed soquickly and all for the better.

I wrote last week about a deal I foundin Oklahoma City. I found an investorto partner with me and we signed thedeal up. It's 101 units. The rents are$55 below market value.

I currently have a positive cash flow of$6,121 per month. With the incomefrom this property, I can now quit myday job. I never would have dreamedthat possible when I signed up for yourinformation just two months ago.I can't tell you how excited I am.Thank you. Thank you. Thank you!My husband is coming with me to thenext event."


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Bill Schroeder was skeptical and didn'tcome because he thought (like my fatherdid) that real estate was a scam.

When those checks for $6,000 startedcoming into their house month after month,he suddenly had a change of heart.

I want you to know that it's absolutelypossible for you to get involved in this typeof business. It doesn't matter if you've gotany type of real estate background or not.

I take you by the hand and I take you frombeginning to end. I meticulously show youhow to do this whole process.

I'm qualified to do this because I do thisevery single day. Not only do I buy,negotiate, and I sell multi-family propertiesacross the country, but Im in front ofstudents constantly.

I estimate that Ive evaluated over $725million worth of properties over the last tenyears. I currently own or am partnered inover $143 million of property. That'simportant so you know that what I'm


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handing you is information that works rightnow.

There is nobody out there explainingapartment investing who owns moreproperties than I do right now, or has boughtand sold more multi-family properties than Ihave over the last ten years.

And you can have results like mine, buteven faster! You know why? Because I hadno one to hand me all the methods, and youhave me!


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Chapter 10:Will You Come Join TheFun?

I've taken all this experience that Ivedescribed and Ive broken it down to asimple step-by-step approach.

Anybody who wants to do this can do thisand be successful.

It's going to take three days to make thathappen. What we're going to do there is Ipersonally three-day intensive workshopwhere I take you from the very basicprinciples of multi-family investing to theadvance strategies.

That will allow you to attract deals and getthem financed, so you decide whether youwant big cash flow, big checks or both.

Whatever your situation, I can show you thestrategies that will get you there.

Here's more of what we do at the event: Wecreate a complete marketing plan. I give


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you over a dozen techniques to get thatphone ringing off the hook, to get qualifiedsellers calling you with below-market dealsor no-money-down ones. I'll show you howto pre-screen and analyze at lightning speed.

Well do this through case studies.

I start you out small. I then show you howto analyze deals, and I break you up intogroups of six because you learn faster whenyou're working with a group.

I start you out with a three-unit deal worth$200,000. Then we gradually work upthrough the case studies over the three daysto an $8 million deal.

What you soon realize is that it's justnumbers. The sooner I get you over the fearof doing the big deals, the sooner you'll dothose big deals.

What I do in those deals is I add differentvalue plays. These are hidden incomesources in the property.

My competition might see the deal before Ido, but I see the hidden value play that they


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pass right by. That enables me to makemoney where others see nothing.

I spend a lot of time at the live eventshowing you how to see these opportunities,too.

The reason my students tell me that they'reso incredibly successful is because we learnby doing. When you go out and do yourfirst deal, it's like doing your tenth dealbecause you've had so much practice duringthe event.

During the live event, I allow plenty of timefor questions, including individual questionswhere I circulate around the room.

I want to make this point very clear: Youget me in the classroom. You get to raiseyour hand and I come right over there andanswer your questions. I dont criticizepeople, or make an example of them. I buildyou up.

We work on getting your self-confidenceand skills up to concert pitch, as they sayin the world of music. You get the personal


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attention you need to go out there and besuccessful.

I show you what to expect and what to lookfor. There are three major environmentalhazards that you'll encounter in multi-familyproperties. If you buy a property with oneof these hazards, you may not be able to sellit, so we'll go over each one of those step bystep.

Then I'll show you how easy it can be tonegotiate. I've been doing this for over tenyears. I get the same objections over andover again. I will share those objectionswith you so you'll be prepared when a sellercalls.

I also hand you some wonderful objection-handling techniques so you can close moredeals.

Get this: If you bring in a live deal fromyour town, I'll negotiate with your sellerright over the phone!

Two boot camps ago, we had somebodyleave the boot camp with a deal all sewn up


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because we had negotiated it in theclassroom!

Then I'll show you how to find the money.Youll know how to put a loan packagetogether so it slides right through the loanapproval process.

I will give you the names, contacts, andinformation for over 50 different lendersnationwide that are used to doing deals withmy students.

They usually specialize in different things.Just like doctors and lawyers specialize, sodo lenders. Ill show you which lenders togo to for any type of deal that you'll beconsidering.

But what if you have no money now? Sure,the banks might give you 80% or 90%, butwhat about the down payment? Where willyou get that?

I'll show you how to find an endless supplyof partners, using my 27 proven no-money-down techniques. Many of these aremethods that nobody else teaches. They'reonly available at my live event.


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They're not the silly little no-money-downgimmicks that you see on late-night TV forbuying a two-bedroom house in the worstpart of town. That doesn't work with multi-family properties.

I'll show you the techniques that have mademe and my students multi-millionaires.

Remember, multi-units make multi-millionaires.

As I mentioned earlier, I explain where theup-and-coming emerging markets are.You discover how to make the right contactsin these markets and how to get dealscoming to you.

You even discover how to pinpoint the rightspots in the best markets. That allows youto get properties right in the path of thegreatest amount of development and growthin that market, so you make the greatestamount of money.

I then show you when it's time to take thechips off the table, pull all of yourappreciation out, and go do it again in


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another market, to make your bank accountjust explode.Well talk all about those managementcompanies that will be doing all the heavylifting for your properties.

At the very end, what we'll do is create apersonalized action plan for YOU. I wantmy students to be successful, so I can brageven more!

How many times have you gone to a bootcamp or listened to audiotapes and gotten allexcited? Then you soon realize that itssomehow worn off, and you didnt takeaction.

That will of course happen if theres no planin place to tell you exactly what to do andexactly when to do it.

What we do in the very last part of the bootcamp is we go through action plans andtailor-make it to your particularcircumstances. Your plan will fit right inwith what you're doing now so you canbecome successful.


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I first give you a seven-day action plan soyou get started right away. Ive found that ifyou don't do something in the first sevendays, you're probably not going to doanything.

We then bring it out to 21 days because ittakes on average 21 days to create a newhabit. I want to build a wealth habit insideof you.

What would you expect to pay for all mysecrets and methods? What would youexpect to invest in a program that can makeyou a millionaire?

Lets see: The state schools where I comefrom charge $7,000 a year. Private schoolsaround Boston are over $40,000 a year. Yougo for four years and what do you get? Youget a degree, a piece of paper, knowledge incertain areas, and you hope you then get ajob.The Subway sandwich franchise is thefastest-growing franchise in the UnitedStates. It costs $25,000 to get a franchisewith them. The average Subway sandwichfranchise owner makes only $38,000 a year.


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Your investment to become financiallyindependent in multi-family properties is not$40,000. It's not $25,000, or $7,000. It's noteven $5,000.

Your investment to become financiallyindependent is only $3,995.

I know what you're thinking. Is it worth it?First of all, I know there are some peoplethat will take action immediately. If youreone of that select group, let me give you thecontact information.

Call my office. You may have talked withJeannie. It could be that you even spokewith my mom. She's over at my office. Mybrother Jeffs there too. They're at781-878-7114.

In a moment, Ill tell you about a bunch ofbonuses I'm giving you for reading thisbook.

Again, you may be thinking Is it worth theinvestment? Well, Mark Sneed, 58 yearsold, was concerned about his retirement. Hecontacted me to say:


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"Dave, 27 days after going to your liveevent, I flipped a four-family and got a$79,000 profit." He says, "I'm in theprocess of doing a two-family to get a$31,000 profit."

Not bad, Mark! Would you trade $3,995 fora $79,000 profit? That's a no-brainer.

But you know what? Here's the best part:Not only did he do that but he now has theknowledge in his head to be able to do itover and over for the rest of his life.

Thats the closest thing to printing moneythat you can do, and not be charged withcounterfeiting.

Marlene Green emailed me. She said:

"Dave, I never thought it would go sowell, so fast. I now have over$300,000 to invest in an exchange. Ijust got a reality check on how muchleverage I have on just one property."(Her first deal.) She said, "Did it strikeyou as funny the first time you foundyourself looking at million-dollar-plusdeals?"


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It did feel odd at first, but then I realized it'sjust one extra zero. That's what makes it somuch sweeter. What's important forMarlene is she has the knowledge to do thisover and over, at will, for the rest of her life.

Another student, Justin, contacted me. Hesaid:

"Hey, Dave, I'm embarrassed to saythat I came to your live event fullyprepared to take advantage of yourmoney-back guarantee. After the firsthalf day, I realized that it probablywasn't going to happen.

I had never invested in multi-familyproperties prior to your event. I hadalways been interested, but I was afraidof the tenant risk and the big numbers.Well, you certainly eliminated thosefears.

My first deal was 110 units with nomoney down, over $6,000 a monthpositive cash flow. I used your equityshare technique that you taught us."


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"Had you told me that I could do a deallike this prior to your event, I wouldhave told you that you were crazy.

My second deal was 170 units, nomoney down, over $9,000 a monthpositive cash flow. I used your taxcredit technique on that one. The no-money-down techniques that you teachare invaluable.

Within one year of leaving your event,I created over $15,000 of monthlyspendable income and I have over $3million in equity. To say you changedmy life is an understatement.

Thanks to your system and step-by-stepapproach, I'm now living the dream."

This is an opportunity right now to getinvolved with a great business.

Plus I've got some bonuses. These aren't thespecial bonuses for the first 12 people whocontact me from this mailing. Everybody'sgoing to get these bonuses right now.


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People say, "Dave, why are you doing liveevents if youre so rich?" I do it for threereasons:

1. My mom always taught me that whenyou get, you give back.

2. Let's face it, I make money. I use thatmoney to buy more property.

3. I want to partner with you. I want toshow you how to do business the way I do it ethically and honestly. I hope you go outthere and find a big deal to partner with meon, a 100-unit plus deal. Its totallyoptional, of course: If you want, just keepthe big deal for yourself, the way Justin did!But its out there as an option for you.

If we end up working together on a big one,I will return to you double the money thatyou invested for the live event, before wedivide up the remaining profits.

Thats a better-than-free way to go to thelive event! You invest $3,995 in yourself.You then get $7,990 back when we closethat first deal, on top of other profits you getlater.


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You can also bring a spouse or a familymember absolutely free.

Theres actually a fourth day, a Bonus Day.Thats when we go over my ChunkerStrategy.

If you're interested to find out how I do mysingle-family chunker methods with verylittle involvement, you need to b

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