realty411 magazine - a free guide for real estate investors

Realt y411 www.realty411guide.com | Vol. 4 • No. 3 A Resource Guide for Investors

Print • Online • Network

WhiteRock Capital, IncDiscover why this growing Californiainvestment firm also buys in Arizona

Photo: John DeCindis

Receive Chris & Ruth’s “Property Analyzer” and guide to “How To Start Your Flipping Business”

www.CaliforniaHomesRepos.com

Chris & Ruth

Property Flipping ExpertsShare their Secrets on how to rehab and flip properties

for Big Profits in this great Foreclosure Market in the Southern California Area.

BEFORE AFTER

Free!

562-304-7787 or log on to: CaliforniaHomesRepos.com/blog/realty411

lipping lipping lipping lipping EExpertsxpertsxpertsShare their Secrets on how to rehab and flip properties


AFTER

www.CaliforniaHomesRepos.com/blog

Upcoming Property Tour Event

Check our website for Calendar of Events in Southern California Only.

Realty411 / reWealth magazine is published quarterly in Santa Barbara County. © Copyright 2012. All Rights Reserved. Reproduction without permission is strictly prohibited. The opinions expressed by writers and columnists are not endorsed by the publishers. DISCLOSURE: Publishers are not responsible for performing due diligence on the opportunities offered by advertisers. Before investing in real estate, seek the advisement of a trusted financial adviser, attorney or tax consultant. Real estate investing is risky and could result in loss of capital.

PRINTED IN THE USA. GOD BLESS AMERICA Connect to our virtual network ~ online 24/7/365

Realty411Guide.com PAGE 3 • 2012 reWEALTHmag.com

FOUNDERLinda Pliagas

[email protected]

Nikolaos K. PliagasEDITORIAL STAFF

Bonnie LasloIsaac Newark IIIStephanie Mojica

COPY EDITORChris Wrenn

Isaac Newark IIIPHOTOGRAPHER

John DeCindisCOLUMNISTS

Dave LindahlJason HartmanRandy Hughes

PRODUCTIONAugusto Meneses

Realty411 WealthReal Estate

Questions? 805.693.1497 or 310.499.9545

WEB MASTERDiggs-design.comADVERTISING Nicolas Weinstock

[email protected] & EXPOS

Lawrence RuanoCALIFORNIA DISTRIBUTION

Professional Distribution Solutions1.877.418.6500

NATIONAL DISTRIBUTIONKJ Banks: 805.377.6328

SUBSCRIPTIONS/INFO: 310.499.9545

Realty411guide.com/subscriptionsRealty411Guide.com reWEALTHmag.com

Join Our VIP Social Network:http://realty411guide.ning.com

www.JasonHartman.comPodcast

The Complete Solution for Real Estate InvestorsTM

Featured Properties

Platinum Properties Investor Network, Inc. helps people achieve The American Dream of financial freedom by purchasing income property in prudent markets nationwide. Jason’s Complete Solution for Real Estate Investors™ is a comprehensive system providing real estate investors with education, research, resources and technology to deal with all areas of their income property investment needs.

JasonHartman.com

Earn 10-18% in Your IRA!Earn 18-35% with Income Property!

ATLANTAProjected ROI

33%

Cash Flow$2,456

DALLASProjected ROI

35%

Cash Flow$5,294

MEMPHISProjected ROI

29%

Cash Flow$3,101

See terms of service at: www.JasonHartman.com/terms

Yes, it is possible to:

FREE EXPOSURE FOR YOURSELF AND YOUR LISTINGS

Join us on www.RealBay.com Today!

The FUTURE of The Real Estate

Industry

Global Online Real Estate Marketplace

Live Bidding Auctions

Listing Style Property Offerings

Fully Functional Social Network Designed to Get

Exposure for Real Estate Professionals

FREE to post listings

FREE to bid on assets

FREE to become a listed service provider and market

yourself to potential clients!

We make our money off of advertising so our users

pay nothing ever!

BEST of ALL IT’S 100% FREE!

Vol4No.2.indd 2 3/17/2012 2:43:50 AM

FREE EXPOSURE FOR YOURSELF AND YOUR LISTINGS

Join us on www.RealBay.com Today!

The FUTURE of The Real Estate

Industry

Global Online Real Estate Marketplace

Live Bidding Auctions

Listing Style Property Offerings

Fully Functional Social Network Designed to Get

Exposure for Real Estate Professionals

FREE to post listings

FREE to bid on assets

FREE to become a listed service provider and market

yourself to potential clients!

We make our money off of advertising so our users

pay nothing ever!

BEST of ALL IT’S 100% FREE!

Vol4No.2.indd 2 3/17/2012 2:43:50 AM

Join us on www.ListedBy.com Today!

FREE EXPOSURE FOR YOUR LISTINGS!

The Future ofThe Real Estate

Industry

• Global Online Real Estate Marketplace• Live Bidding Auctions• Listing Style Property Offerings• Fully Functional Social Network• Designed to Get Exposure for Real Estate Professionals• FREE to post listings• FREE to bid on assets• FREE to become a listed service provider & market to potential clients!

REAL BUYERS • REAL SELLERS • REAL ESTATE

Receive Chris & Ruth’s “Property Analyzer” and guide to “How To Start Your Flipping Business”

www.CaliforniaHomesRepos.com

Chris & Ruth

Property Flipping ExpertsShare their Secrets on how to rehab and flip properties


BEFORE AFTER

Free!

562-304-7787 or log on to: CaliforniaHomesRepos.com/blog/realty411

lipping lipping lipping lipping EExpertsxpertsxpertsShare their Secrets on how to rehab and flip properties


AFTER

www.CaliforniaHomesRepos.com/blog

Upcoming Property Tour Event

Check our website for Calendar of Events in Southern California Only.

“I changed one thing one timeand left the ‘rat race’ forever.I can show you how I did it,

Matt TheriaultReal Estate Investor

Founder of EpicProAcademy.com and CashflowSavvy.comHost of the Epic Real Estate Investing Podcast on iTunes

contents 8 How Real Estate Performs During Inflation 9 Editor’s Letter: It’s EASY to Build Wealth10 The BIG Property Grab by Dave Lindahl13 3 Profit Centers to Create Cash Flow14 Build Wealth Starting with Only $100,00015 Who’s on the Radio? It’s the Real Estate Guys16 Jason Hartman’s Financial Freedom Report18 The Real Estate Scoop in Hollywood19 LA Clubs Host TOP Real Estate Leaders20 A Solid Foundation with Whiterock Capital24 Tom Wilson’s Tale of Two Turnkeys26 Spotlight on Ohio with Missy McCall Hammonds28 Why the Industry Seriously Dropped the Ball30 Tips from Shortsale Masters Bill & Dwan Twyford32 The Lady Landlords take San Diego by Storm33 Matt Theriault Helps Readers Conquer Fear34 The Property Flip Pros Share their Insight36 Cash Flow In the Carolinas with Alex & Kevin38 How to Market Your Self Storage Facility39 Insight from America’s Land Trust Expert40 401(K) Investing with Accuplan Benefits Services 42 Belize: A Tropical Paradise with a Strong ROI43 Inside a Note Deal with Tony Martinez44 Why Arizona Real Estate Leads in Appreciation46 Mathew Owens, CPA gives 10 Keys for Success48 Community Buying Group Saves Investors Money50 Chris Dannenfeldt Shares his Rehab Wisdom56 Norada Real Estate Helps Investors Profit58 Seller Financing Options in Indianapolis59 Market Spotlight: Kansas City, MO62 Should You Fix and Flip or Buy and Hold?

“I changed one thing one timeand left the ‘rat race’ forever.I can show you how I did it,

Matt TheriaultReal Estate Investor

Founder of EpicProAcademy.com and CashflowSavvy.comHost of the Epic Real Estate Investing Podcast on iTunes

Meetings are on the First Tuesday of every Month

LEARN MORE AT:www.prosperitythoughrealestate.com


Download Back Issues for FREE!!www.Realty411Guide.comwww.reWEALTHmag.com

IRCA-LA is Changing Its Name!

We are the only Westside Cluboffering FREE ADMISSION

In this article we’re going to take a look at how real estate performs in various macroeconomic climates.

If you’re following the news and the actions of not only the US government but most of the major

governments in the world, then it is very reasonable, maybe even a foregone conclu-sion, that we are headed for massive infla-tion in the not too distant future. If things get even more out of control we could even experience hyperinflation. On the other

hand, a case can be made that we’re head-ing for massive deflation, just like in the Great Depression.

It is out of the scope of this article to go into details on the factors leading to these two scenarios. However, if you are a real estate investor, or are considering investing in real estate, then it is important to under-stand how real estate investments perform in each of these two scenarios.

What happens in periods of high infla-tion? The purchasing power of the dollar declines. As a result, creditors are getting paid back in dollars that are worth less then they lent out and as a result they raise inter-est rates. Creditors like interest rates to be a few percentage points above inflation.

So let’s use some numbers as examples. If inflation hits 12%, then interest rates could easily go up to 15 to 20% so creditors can make money. But at 15% the cost of a mortgage skyrockets and most people can’t afford to buy a home. This happened in the ’70s and many other times in history.

As fewer people qualify for mortgages, rental demand increases and rents go up.

Rental property owners, especially those with fixed interest rate mortgages, receive higher rental income while their biggest expense stays fixed. Thus their cash flow increases.

One important note here. In times of high inflation, properties with shorter rental periods generally perform better so residential rental property with 6 to 12 month leases are a good bet. Commercial rental properties such as office complexes and shopping centers, which often have 5

to 10 year leases can actually see cash flow go down as expenses such as utilities, in-surance, maintenance, etc., increase while rents are flat.

How is appreciation affected by periods of inflation? During times of high infla-tion, the cost of the raw materials needed for new construction increases, which also directly affects overall property prices. As the costs of materials, labor, and legal rise, prices of existing properties are positively impacted.

But what if we’re headed for another Great Depression? We certainly hope that is not the case, but let’s take a look at how real estate performs in deflationary times. If residential real estate performs well in inflationary times then you might expect that it would not perform well as an invest-ment in times of deflation but as we’ll see that is not the case.

In times of deflation, there isn’t much money available to buy anything. This lack of money creates a lack of demand, and the lack of demand forces prices down and that includes real estate prices. How-

ever, real estate has just gone through a major deflationary period while other com-modities such as gold, silver and oil have had major upswings. So real estate has less room to fall and less risk than other com-modities.

But here’s the kicker, cash flow real es-tate has a huge advantage over other assets during deflation: the cash flow!

Even if the value of a rental property drops during a period of deflation, the rent checks still give you a return on investment

each month. Other investments do not. Plus, it’s easy to find renters during defla-tion because banks don’t have the money to lend for mortgages. People can’t buy homes, so they have to rent. If you expect a period of deflation, your real estate invest-ment will perform best with longer lease periods so increase your lease durations as much as possible.

In summary, you can see that residential rental properties do very well in times of inflation and they have advantages over other investments in times of deflation.

Lori GreymontP.S. – Our team of experienced real estate professionals can help you create a customized investment plan and find properties in the best rental markets in the country that fit your plan.

To reach Summit Assets Group, please call: 408-268-9777.

How Real Estate Performs in Times of Inflation & Deflation



Continued on pg. 52

In Los Angeles, a com-mute is unbearable. In fact, INRIX®, a lead-ing international pro-

vider of traffic information, reports that the City of An-gels is the second most con-gested city in the nation.

Many Angelenos drive three hours per day just to work. I thought that was bad until I discovered people who commute into California ev-ery week from other states, only to see their families on weekends. (I sat on a plane next to a bicoastal commuter once.) The sacrifices made by individuals just to make a basic living (food, clothing, shelter) for themselves and their loved ones is mind bog-gling. I know what it’s like to drive hours every day to punch a clock; it’s tough!

Even if you love your profession, commuting for hours, putting up with office politics and trying to please demanding bosses can be overwhelming. It can also be very stressful. Plus, with an economy like this, wages and salaries are just not very generous. Companies seem to be using the “bad econ-omy” as an excuse for poor pay, lack of benefits, and company perks.

When I was a college student majoring in journal-ism, I was not taught about business or finances at all, in fact, nobody ever discussed

salaries. When I discovered how much journalists made, I was shocked and greatly disappointed. Let’s just say it’s a career that you defi-nitely have to be passionate about because media salaries tend to be modest. Having loved magazines since I was a child, I decided to enter the profession and watch my pen-nies so that I could invest as much money as possible in something that I knew was a sure thing: Real Estate.

You see, because I studied the mechanics of money on my own, I knew that most millionaires made their wealth through real estate. I under-stood vital concepts about the time-value of money and how location and apprecia-tion could easily skyrocket a person’s net worth.

But the hardest part I thought was getting started. So my husband and I worked hard to accumulate the funds

It’s HARD to Make a Living But it’s EASY

to Build Wealthby Linda Pliagas, founder/publisher

The Complete Solution for Real Estate InvestorsTM

Listen to The Creating Wealth Show, Jason's Highly Acclaimed Investor Podcast:

JasonHartman.com

So you love real estate...but you hate management?

Passive Income 12.25%First Trust Deeds

Podcast

See terms of service at: www.JasonHartman.com/terms

We have access to very unique "insider" private lending opportunities. You’ve never seen hard money lending like this before. If you have $100,000 or more to invest and you want conservative, diversified, quick-turn, non-pooled investments that repay in about four to six months contact us for details. Our private lending program is simple and proven. The simplicity of our private lending program is unmatched. Visit www.JasonHartman.com or call 480-788-7823 today.

CW 274 -Fiscal Hangover & Global

Change with Keith Fitz-Gerald

CW 273 - The Decline of the EuroZone

with Alasdair MacLeod

CW 269 - SWOT Analysis of Income Property,

Facebook IPO & Case Study

How Real Estate Performs in Times of Inflation & Deflation

Linda with Dmitriy Fomichenko of SenseFinancial.com at an event.

The BIG Property GRAB!!Three years from now you could be

living in a water-front property, sleeping in on Monday mornings,

doing only the things you want to do and excitedly walking to the mailbox everyday ready to gather that days set of cash flow checks the Postman dropped off .

It’s those cash flow checks that allow you to live this life of leisure and it never stops to amaze you how they have gotten as high as they are and they keep increas-ing!!

…Or…you could wake up on Monday morning three years from now, living the same life your living now… and if that’s OK with you, that’s OK with me. But if you want to change your life in any way, that change will probably require money… And here’s the deal.…you have about two and a half years to stake your claim and get your share of a lot of wealth that’s about to be created during this big property grab.

What the heck am I talking about? I’m talking about the multi-family real estate market. If you will do for the next three years what most people won’t do, you will be able to do for the rest of your life, what most people can’t.

I’m not talking about becoming a landlord! God no!! Leave that to the quali-fied management companies who love to handle tenants, trash and toilets. I’m talk-ing about investing in multi-family proper-ties while the prices and cash flows are at historic lows and watching your wealth and cash flow skyrocket as the economy gets better.

How do I know this is going to hap-pen? It happened to me, this is how I made

my first real estate fortune, and the economy is lined up perfectly to have the same thing happen again.

I remember when I first started teaching, at the time I owned just under 1,500 units. People would say, “Oh, that Dave Lindahl is so suc-cessful because he bought at the right time”….which was partly true.

In the seven years that I’ve been teach-ing other investors these methods, I have accumulated an additional 5,800 units…but the naysayers do not acknowledge that, they just focused on the fact that I started out in the right place at the right time. Which was true.

But now everyone has the chance to “be in the right place and buy at the right time” and here is why...

Over the last few years the economy has been devastated by this recession. A lot of people lost a lot of jobs, a lot of un-savvy investors have lost a lot of properties, and a lot of banks have lost a lot of money!

Because of this, as everyone well knows, the banks virtually stopped lending. Not only for buying investment properties but especially for the new construction of those investment properties.

Because of this, there has been almost no new multi-family properties built in the last four years.

OK so why is now such a good time to be buying? Well, there is this group called “Echo Boomers”, they are the babies of the Baby Boomers, there are over 74 mil-lion of them and they just started hitting the age of 18 last year.

Why is this important? Because they have just started coming into the renting age, it is estimated it will

by David Lindahlwww.REMentor.com

The BIG Property GRAB!!

take 10 to 12 years for the Echo Boomers to go through the marketplace, just like there were 14 years of Baby Boom-ers.

So now we are in a situation where there has been no new supply added to the marketplace but a heck of a lot of demand. It’s going to take the construction industry at least a couple of years to catch up!

So you start buying apartment buildings today at today’s lower rents and lower occupancies (remember when buy-ing cash-flowing properties, we ALWAYS buy based on current cash flow), you buy using conservative formulas and you buy with at least a 10% cash on cash return. With cash flowing properties, we ALWAYS buy based on current cash flow), you buy using conservative formulas and you buy with at least a 10% cash on cash return. Which means your properties cash flow now.

Then you hold on to these properties, let the manage-ment companies collect the rent, deal with tenants, and deal with the maintenance and repairs. You oversee the numbers and cash checks.

As you accumulate more….you cash more checks. Your primary job as an investor is to get into more cash flow-ing deals. And right now is one of the best times to do this because the rest of the population still thinks real estate sucks because that’s all you hear in the news. There is not much competition.

As you start moving forward, the market starts to change. We start coming out of this recession, more Echo Boomers enter the market, rents begin to rise, which makes values rise and this makes YOUR monthly checks rise and YOUR equity (your wealth) rise.

This continues for a couple of years and all of a sudden, we are into an economic recovery, housing prices and multi-family prices start to rise substantially and the news media starts talking about the “comeback” of real estate and by this time….you are unplugged and living the life of leisure….you are rich.

If you wait until that point to start investing, it’s to late! At that point, prices have risen much higher than they were today and there are many more people competing with you to get those deals!

Now is the time to stake your claim, now is the time to secure your future…..now is the big “Property Grab”. Go out and grab as much as you can and in two and a half years write me and tell me how much better your life is!

About the Author: Dave Lindahl is a national investor who owns over 7,000 apartment units. He is also the principle owner of REMentor.com, a real estate investing education company. He can be reached at [email protected]

NATIONAL REAL ESTATEINSURANCE GROUP, LLC


2013

Black Belt Investors, The West’s Top Ranked Resource For Successful Cash and Wealth Building

www.BlackBeltInvestors.comVisit Black Belt Investors at:

The West’s Real Estate Investor’s Club

1 2 R O U N D S

To receive more informa on or to a end, please call

Top Ranked

Offers Its Members:3 Reality Based Education, Training & Coaching to Keep

You in Tip Top Shape3 Exciting Diversi�ed Topics �at Revolve Around Real

Estate and Business Opportunities3 Networking to Help Build Your Team & Sharpen Your

Skills3 A Connection to Keep You Engaged and Motivated3 Discounts From Local and National Businesses to Help

Increase Your Margins3 Support From Black Belt Investors to Assist You 5

Days a Week3 All �is Information at Our Club Meetings and More!

(951) 280-1900If you are out of the area, then no problem! Stay engaged by par cipa ng in our

FREE webinars and teleconferences.

Black Belt Investors is a full-time professional network o�ering its members education, networking, business referrals, consult-ing and exciting cash and wealth building opportunities. Whether you’re a white belt investor just getting started or a black belt investor looking for new resources, we can assist you in reaching your goals.

We Offer Two California Loca ons:Corona/Norco, Riverside County – Meet the 2nd Wednesday of the MonthDowney, Los Angeles County – Meet the 2nd Thursday of the MonthNetworking: 6:30 pm – Mee ng: 7:00-9:00 pm

2013

Sensei Gilliland is one of those indi-viduals who, whether at work or at play, gives it everything he has. And

when the CEO of Black Belt Investors (BBI) is not indulging his passion for the martial arts or fishing in the Rocky Moun-tains, he’s helping his investor partners re-alize lifelong dreams of financial independence. His company BBI is a full service firm involved in flipping, creative fi-nancing, lending and rentals. Sensei’s mantra for the coming year is: “There are opportuni-ties in the marketplace that can create income streams by short-term investments, which don’t require the risk of most investment deals.” He cites three specific areas in which this can be accom-plished: wholesaling, rehabbing, and cre-ative financing.

It all begins with the wholesaler, ac-cording to Sensei, whom he defines as “The go-to-guy who finds and flips fantas-tic deals [for the investor] that are priced significantly below market value. Consider a Costco warehouse versus a Macy’s. You can get similar products at both stores, but Macy’s will charge you at full retail. I like to think of my company as Costco... We buy cheap, we sell cheap, and we are the suppliers of great quality real estate deals to other investors and home buyers.”

The vast majority of real estate inves-tors are landlords and rehabbers and, since 1995, Sensei has been involved in both areas. “Rehabbers that flip are in it for the short term (immediate income), and land-lords are looking to hold for the long term (for residual income, tax benefits and eq-uity). As a wholesaler, our job is to find a great deal, bind it under contract and sell the contract to either an investor or end user (home buyer). My job is to sell that contract and get paid in 21 days or less.”

Typically, Sensei doesn’t wait until the end of escrow to get paid like most people do. He adds: “For the rehabber, he is going to get paid after he buys it, fixes it, goes through escrow and flips it. That’ll take

anywhere from three to six months. The landlord is in it for the long haul.”

Sensei trains and coaches real estate entrepreneurs and, when asked his opin-ion, he’ll let you know that he considers wholesaling the foundation of the suc-cessful real estate operator. “So if I’m an investor who

really wanted to get into real estate, and I don’t have a hundred grand to buy it and fix it, we can build our cash base through wholesaling because it doesn’t require any cash or credit. If you can picture a pyra-mid, you start building with the foundation and that’s wholesaling (learning to find the deals and create cash). Then we graduate to rehabbing or purchasing at auctions or doing some sort of creative financing like lease options or seller financing and ulti-mately becoming a landlord. The problem with most people is they like to start on the third or fourth level and they can’t because they don’t have the cash, credit and/or the experience.”

Just as people have personalities, Sensei believes that properties (and deals) have personalities as well. The most successful deals match the personality of the property to the personality of the investor. “Maybe the rehabber that buys the property is clear to make $20,000 off of his flip, but as a wholesaler he probably made $8,000. Now the difference between the wholesaler and the rehabber is that I didn’t put any money into the deal, I didn’t have to close on the deal through escrow or title, I didn’t have to suffer the rehab expense or incur the hold-ing cost, and I don’t have to put my hands together as its sits on the market and hope and pray that it sells. So I made $8,000 in 21 days or less without the risks, whereas the rehabber is willing to take on all the

3 Profit Centersto Create Cashflow in 2013

by Isaac Newkirk III

risk and will need to wait a few months to collect his check.”

Remember that Sensei gets paid in a few weeks while the rehabber is waiting until the property sells to cash in, a period during which Sensei could be moving on to other deals. “I can put more deals into the pipeline than rehabbers can. I’m a re-habber also, so I know that I can typically manage about three rehabs at any one time. Whereas, as a wholesaler – which is not as labor intensive – I can put many, many more deals into the pipeline. Ultimately, I’m going to end up making more money than a rehabber. Remember the Costco ref-erence... It’s all about selling quality prod-ucts at a discount to move the inventory in bulk.”

Sensei also believes that real estate wholesalers have another major advan-tage: the capability of accepting virtually every deal that comes along while the re-habber suffers certain constraints. “Rehab-bers have a certain criteria of what kinds of properties they want to buy. If the prop-erty doesn’t fall within their guidelines, they tend to pass on the deal. I don’t care if the property is turnkey, if it’s marginal or burned down to the foundation. What’s important to me is the price I’m getting it for and what it’s worth on the after repair value side. So price cures all for the whole-saler and, once I get it under contract, I can sell it to another investor whose criteria it may fit or keep it for myself. This way I’m able to create a dual income stream, one through wholesaling and one through rehabbing.”

In his seminars, Sensei will advise you that most investors only know two ways to invest in real estate: buying and holding a rental or buying and repairing the property. He takes considerable pride in the fact that Black Belt Investors offers its clients op-

Continued on pg. 15


Sensei Gilliland, Franciscoand Sensei’s son, Carson

How to Become a Millionaire (Starting with Only $100K)!

How could the difference in returns be so dramatic? It’s simple — the use of leverage can help us acquire much more than we could on our own. But there’s more! Pat had purchased income property so he was able to apply the monthly rental income toward the debt. In fact, the rents more than covered the expenses — so much so that Pat was able to receive a 10% annual return, which would net an additional $150,000 over the 15 year period. Add that net rental income to the $700,000 profit, and Pat’s total return is $850,000 in profit!

However, what if Pat put all his rental income toward paying off the loan instead of pocketing it? He’d have all properties paid off in 15 years thanks to the acceler-ated pay-off. Pat would be a millionaire! Plus, those properties would be netting an annual rental income of approximately $100,000 per year. Remember, that’s the same amount of money Pat started with.

Let’s summarize these numbers: $100,000 at 5% over 15 years became: $207,000 for gold$415,000 in stocks$1 Million plus $100,000 annual rental income for life.

Enough said? Actually, no. There’s more: Taxes.

Both Sandra and Joe will need to pay capital gains taxes if they decide to cash out. Today, long-term capital gains tax is normally 15%, however Congress is considering eliminating the capital gains tax. There is discussion of including it as ordinary income, which could bring it up to as much as 50% in tax.

If Pat wanted to cash out, the capital gains tax would also apply, unless he decided to use the funds to buy another property through a 1031 exchange. Ad-ditionally, Pat would have enjoyed many deductions from owning real estate that would not be available with stock or gold

investments. Real estate isn’t always easy because

it does require hands-on management. However, that manager doesn’t have to be you. There are very good companies who specialize in property management. Real estate also requires that you buy right. There are many agents who specialize in finding high-yielding rental property. Be careful about working with agents who don’t own rental property because they may not understand it.

If you are new to real estate investing, consider working with someone who is highly experienced AND successful in what you are trying to achieve.

You can download a free report, “7 Steps for New Real Estate Investors” at: www.RealWealthNetwork.com/411 And, while you’re there, join the network for free on-going real estate education, resources, market updates and referrals to leading agents, property managers and wholesalers nationwide.Kathy Fettke is the founder and CEO of Real Wealth Network “The Real Estate In-vestors Resource.” Members have access to free education, resources and referrals to turn-key rental properties around the United States. Real Wealth Network has over 8,000 members, so the shear power of numbers allows the group to acquire prop-erties at huge discounts. Membership is free. Kathy is also host of The Real Wealth Show on KABC Los Angeles and on iTunes and is a regular guest expert on ABC, CNBC, CBS Market Watch and NPR.

by Kathy Fettke

One of the greatest benefits of real estate investing is the ability to leverage through creative financing. The use of OPM (Other

People’s Money) can increase our returns infinitely. Let’s compare the ROI (Return on Investment) on three different invest-ment vehicles: gold, stocks and real estate. Here are some sample case studies of three people with $100,000 to invest:

Sandra buys $100,000 worth of gold — using no leverage.

Joe purchases $100,000 in stocks, but he buys them on margin so his stock value is $200,000.

Pat uses $100,000 as a 20% down payment on $500,000 worth of income property.

Let’s look down the road 15 years to compare investment strategies, with the assumption that each investment increases 5% per year in value. (Please note that markets go up and down, so this example is only being presented for the sake of comparison.)

• In 15 years at a 5% return, San-dra’s gold would be worth $207,000. She has slept well at night knowing she owns “real money” and is thrilled that she’s doubled her money.

• In 15 years at a 5% return, Joe’s stocks would be worth $415,000. He has to pay back the margin so he nets $315,000 and he’s thrilled that he’s tripled his money.

• In 15 years at a 5% return, Pat’s properties are now worth $1 million. The initial 30 year fixed loan of $400,000 is now payed down to $200,000 so the profit is $700,000! Not bad for an initial $100,000 investment.


education and expert perspectives in a fast-paced, entertaining style.

The Guys talk investment strategy, economics, tax and asset protection planning, market and property due

diligence, international diversification, and much, much more!

Gain valuable insights from inter-views with notable experts, industry leaders and real-life investors. Discover proven strategies for making money with real estate in any market, how to avoid common and costly mistakes and what is working in the real world right now. Relevant topics, credible guests, upbeat delivery and no sales hype have made The Real Estate Guys, (www.RealEstateGuysRadio.com), one of the most listened to real estate talk shows in the world. There is a new episode released every week, so be sure to subscribe today by visiting their online network. — edited by Lori Peebles

Bonus: SIGN-UP for their free e-mail newsletter at RealEstateGuysRadio.com. Be sure to also “LIKE” them on Facebook for the latest updates at Facebook.com/TheRealEstateGuys

They love real estate and have accepted the mission to share news, information, ideas, perspectives and strategies that

will help their listeners become invest-ing geniuses. Robert Helms and Russell Gray are hosts of The Real Estate Guys™ Radio Show, one of the most popular real estate podcasts of today.

Their discussion topics, guests, events – even their sponsors – are all chosen with this mission in mind.

Robert Kiyosaki, author of Rich Dad Poor Dad says, “If you’re serious about investing in real estate, listen to The Real Estate Guys™ – they really know what they’re talking about.”

The Real Estate Guys™ Radio Show has been broadcasting weekly on con-ventional radio since 1997 and is now heard worldwide on iTunes as the #1 downloaded real estate podcast. Plus, it’s free.

When you tune-in to The Real Estate Guys™ Radio Show, you’ll hear from special guests including the likes of… • Robert Kiyosaki, The legend himself, author of Rich Dad Poor Dad• Donald Trump, real estate mogul• Steve Forbes, Forbes Magazine• Peter Schiff, economist and author of CrashPoint 2.0• Rich Dad Advisors - Ken McElroy, Garrett Sutton and more• Success Stories (and Failures) of Real-World Investors

The Real Estate Guys™ Radio Show hosted by professional investor Robert Helms and financial strategist Rus-sell Gray, the show delivers no-hype

“Live where you want to live, but invest where the numbers make sense.”

– Robert Helms, The Real Estate Guys™ Radio Show

Who’s On the Radio? It’s the Real Estate Guys!

portunities in a third area of investing that relatively few get involved in (primarily due to the lack of expertise available): creative financing aka purchase options.

Both wholesaling and rehabbing in-volve equity positions in the property, not so with creative financing which is the flip side of wholesaling. Sensei ex-plains: “Say that a wholesaler is looking for a property with a minimum equity position of 20 percent. A property that doesn’t meet his minimum will make him walk away from it. But someone like myself will come in and structure a deal with that same property. Say that a property is upside down, most people at this point would go the short sale route. But if you don’t want that short sale to negatively reflect on your credit re-port, then you’ll want to use a different method like ‘subject to.’ I can take this upside down property and package it up and sell the paperwork to another home buyer or investor while leaving the mort-gage in place. What ends up happening is the seller releases his right to the deed with the original debt remaining in the seller’s name and the new buyer starts making mortgage payments directly to the lender. This creative financing tech-nique is called ‘subject to’ (purchasing subject to the existing financing).” While Sensei references “the saving of his cred-it rating” as the principal reason a seller would opt for ‘subject to’ financing, he cites other benefits as well. “Their big-gest benefit is that they don’t have to get a loan. The loan is already in place.”

A deal like this may not be obvious to a newcomer, Sensei points out that most real estate investment firms don’t do deals of this type. “They’re not multi-faceted. They are mostly salesman work-ing the cookie cutter method of simple transactions, and they work off commis-sion, which is typically capped. As an in-vestor, we (BBI) don’t just assist buyers and sellers; we present opportunities to homebuyers and investors and we don’t work off commissions. We work off prof-its, which are not capped.”

So when it comes to creating cash flow in the coming year, Sensei and his colleagues at Black Belt Investing invite you to consider wholesaling, rehabbing, and creative financing.

3 Profit Centers, pg. 13


Robert Helms and Russell Gray

Realty411Guide.com PAGE 17 • 2012 reWEALTHmag.com Realty411Guide.com PAGE 16 • 2012 reWEALTHmag.com

from Jason Hartman’s Financial Freedom Report

At the Financial Free-dom Report, we have been warning about inflation for quite a

while. For a long time, the Con-sumer Price Index has shown what appear to be very benign levels of price increases, leading some to believe that the monetary expan-sion required to finance profligate government spending can be done without consequence. However, analy-sis of both the methodology that is used to create the core consumer price index and a handful of other price indicators tells a significantly different story.

The most commonly quoted price indicator is the “Core CPI” that excludes food and energy. The stated purpose of this meth-odology is to show a less volatile price indicator. However, food and energy costs are very real and their absence from the prevailing index does not make them any less of a necessity. One of the more common index comparisons is the Core CPI vs. All-Items CPI. The disconnect between these two indexes is very stark across the last four quarters, and since Q4’08. Most of this is due to recent spikes in the price of energy.

Over the last five years, the growth rate between the two indexes is much closer, but the “all items” index is still grow-ing approximately 17% faster than the “Core” index.

Another point of comparison against the Consumer Price Index is the Pro-

ducer Price Index or PPI. These two in-dexes differ in a very significant manner that makes their contrast even more tell-ing. The Consumer Price index is based on a weighted basket of goods that is adjusted over time. The weightings of

different areas are steadily changed, and the weightings within categories are changed to reflect perceived changes

in consumer preference. In contrast to this, PPI tracks specific products and commodities over time. Thus, PPI is a much less subjective index, since it tracks specific products and specific commodities, tracking their aggregated price changes over time.

By adjusting the weight-ings and allocation of the CPI “Basket” it is possible to suppress the reported rate of inflation very significantly. Comparing the core CPI, all-items CPI, PPI for finished goods, and PPI for all com-modities tells a very stark story. This unmistakable story is that over the past few years, products and commodi-ties have been exploding in

price while the reported CPI index has remained benign. Even when com-pared across a five year time horizon, the growth rate of PPI finished-goods and all-commodities indexes have been nearly double that of core CPI. This

trend indicates that the price of real products and real commodities are growing twice as fast as we are being led to believe.

This observation merits further analysis into the component parts of the Consumer Price Index. In order to provide a basis of comparison, it is useful to compare the growth rates of the Core CPI, Food, Hous-ing, Medical, and Energy.

Since Q4’08, the two aspects that stand out the most significantly are energy and medical costs. Thus, it is quite interest-

IT’S HERE!Inflation Isn’t Coming…

and more places. The only place where inflation seems to be absent is in the government reported price indexes. The

reason for this is quite clear … the po-litical authorities do not wish to be held responsible for pursuing financial poli-cies that escalate prices and rob people

of their purchasing power. The extended impact of inflation is a

steady confiscation of people’s purchas-ing power by the government. As the Federal Re-serve contin-ues to print more money, it dilutes the supply of money available in the global marketplace, and pushes up nominal prices. The area where inflation lands first is in necessity items like food and energy. Furthermore, it impacts poor people the hardest since they spend a much higher percentage of their income on food and energy that middle

class or wealthy people. In short, infla-tion has been engineered by the gov-ernment to transfer wealth from you to

them, and also carries the effect of transferring wealth from the poor to the rich as their asset values and rents inflate.

None of us possess the ability to singularly impact inflation. However, we do have the ability to singularly change the effect that inflation will have on us. By following the Financial Freedom Report system of prudent investing, it will place you in an advanta-geous position for the infla-tionary environment that has

already arrived and is not likely to end at any time in the near future.

Action item: Shift your personal and financial decisions toward defending

against inflation with high quality fixed-rate debt that generates rental income and is attached to real assets. The illu-sion of stable prices cannot endure in-

definitely, and the façade will eventually break. When it does, you do not want to be among the masses who are clamoring for real assets … you want to own the real assets that people are clamoring for.

As the Federal Reserve continues to print more money, it dilutes the supply of money available in the global marketplace, and pushes up nominal prices.

The area where inflation lands first is in necessity items like food and energy.


ing that Energy is completely ignored in the “Core” CPI, and medical is assumed to be a mere 6.6% of the “all items” consumer price index.

This is where the subtle problems of re-ported CPI figures come into play. The index as-sumes that people spend less than seven percent of their income on medi-cal care. However, it is interesting to note that health care represents approximately seven-teen percent of the US economy. The dramatic growth rate of heal care costs is being hidden by suppressing the weighting of medical costs in the reported price index.

One of the principal factors that is

holding the CPI index down is slow growth in the ‘housing’ segment of the index, which represents approximately 41.5% of the total index weighting, and reflects the ‘equivalent rent’ of a residence, instead of the market value. The obvious driver of the suppressed housing costs is financial crisis and ensuing recession that has softened the equivalent rent for primary residences. However, most people don’t live in the world of an index. They purchase a home with a mortgage that has a fixed payment, which doesn’t go down when the price of their home decreases. Other people sign a lease for a house or apart-ment that frequently lasts one year and doesn’t go down if housing demand softens.

The summation of all these factors clearly points to one inescapable conclu-sion. Inflation isn’t coming, and it isn’t on the horizon; it’s here! The signs of price inflation are showing up in more

Jason Hartman has been involved in several thousand real estate transactions and has owned income properties in 11 states and 17 cities. His company, Platinum Properties Investor Network, Inc. helps people achieve The American Dream of financial freedom by purchasing income property in prudent markets nationwide.

Jason’s Complete Solution for Real Estate Investors™ is a comprehensive system providing real estate investors with education, research, resources and technology to deal with all areas of their income property investment needs. Contact him at www.JasonHartman.com or 714-820-4200.


by Stephanie Mojica

One of the perks of being a celeb-rity is the ability to buy man-sions that even some doctors and

lawyers can only dream about. Celebrities snagging prime real estate is definitely not new, but recently some savvy stars have caught on to the importance of developing multiple streams of income. “Flipping” houses is a growing trend among Holly-wood stars, ranging from Miley Cyrus of “Hannah Montana” fame to iconic actress and singer Cher.

Decades before the “Flip This House” trend became so popular in and out of Hollywood, acclaimed comedian and ac-tivist Bob Hope was an accomplished real estate investor. In the 1960s, he and his

wife Dolores donated 80 acres of land to be used for a future Palm Springs medical center. Most of their fortune, estimated at more than $500 million when Hope died in 2003, came from real estate holdings and sales rather than acting revenues.

Miley Cyrus, an actress with her own accomplishments and also the daughter of Billy Ray Cyrus of “Achy Breaky Heart” infamy, started eyeing a second career as a real estate investor at the tender age of 17. She could not legally buy her first house until she was 18, but quickly caught up for lost time.

One of her recent investments, a 5,173-square-foot home on 1.15 acres of land in Studio City, quickly netted her about

$500,000. Now 19, Cyrus is earning a more than respectable second income from flipping similar properties through-out Studio City and Toluca Lake. Judging by her recent purchases and sales, she clearly prefers homes with unobstructed panoramic views of Los Angeles and spa-cious pools as well as hot tubs.

Another famous real estate investor is Vanilla Ice, best known for his 1990s rap song “Ice Ice Baby.” Unlike many fellow celebrities who also invest in real estate, Vanilla Ice aka Rob Van Winkle has spoken publicly finding plenty of financial success flipping houses. Austin, Texas >

Celebrity Real Estate Moguls

Miley Cyrus started eyeing a second career as a real estate investor at the tender age of 17. One of her recent investments, a 5,173-square-foot home on 1.15 acres of land in Studio City, quickly netted her about $500,000.

The Hollywood elite have been known to dabble in real estate, some amass even greater fortunes than in their acting careers.

Continued on pg. 59

Right: Miley CyrusPhotographs: Dreamstime.com

Celebrity Real Estate Moguls

Arrive early or you may not be able to find a seat at the popular Investors Resource

Center of America (IRCA-Los Angeles). The only free club in Southern California serves up delicious finger foods and show-cases some of the biggest names in real estate (like Bruce Nor-ris, Dave Lindahl, Mike Cantu, Robyn Thompson, Bob Diamond, Vena Jones-Cox, Frank McKinney, Tony Alva-rez, Jack Miller, Peter Fortunato and John

Schaub). Hosted by Steve Love and his wife, Robyn, the gracious couple extend a welcome so warm you feel as if you were invited into their home. Their hospitality and first-hand knowledge of real estate deal making rounds up hundreds of loyal fol-lowers into the Four Points Sheraton ball-room in Culver City on the first Tuesday of every month at 6:30 pm. The club recently changed its name to Prosperity Through Real Estate, which is a better reflection of the founders’ mission. The Loves be-gan their career in real estate part-time

while work-ing regular jobs as real e s t a t e ap -p r a i s e r s , but through t h e i r i n -ves tments managed to retire much earlier than

anticipated. Now, they dedicate their lives to spreading their message of financial free-dom through sound real estate investing.

So how did it all come about?“The club was actually co-founded eight

years ago jointly by Ron LeGrand and our-selves. He chose us to run the Los Angeles area group because we were his most suc-cessful students in this area,” Steve Love recalls. “But after starting ten groups na-tionwide, he’d realized that he’d bitten off a bit more than he wanted to chew, timewise, so he backed out to spend more time on his many other business endeavors.” Love says the club’s mission was simple from the start: “To introduce as many folks as

possible to this incredible business of real estate entrepreneurship and investment, to train and inspire them to do their best and reach their own goals and, of course, to have fun while doing it.” He says it’s their way of “giving back” and helping others in this wonderful real estate business that does so much for so many. Although Love admits that the first few years were chal-lenging, the club grew in size and influ-ence, at times accommodating as many as 350 people. Its reputation for credible education and serious networking attracts many, including other local club leaders.

As a matter of fact, their good friend Phyl-lis Rockower, founder of The Real Estate Investors Club of LA (REIC of LA), asked them to join her to operate her monthly club too. After 17 years at the helm, Rock-ower wanted to scale back to devote more of her time to doing deals and one-on-one mentoring. As the longest-running club in Los Angeles, REIC also hosts hundreds of local followers every month as well.

“So now we run two club meetings every

LA Clubs Host TOP Leaders

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

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

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

PROFILE OF YOUR FUTURE PORTFOLIO

“Contact me for a free cash flow analysis.”

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

TOM WILSON, [email protected] TomWilsonProperties.com

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

Typical PropertyPrice $139,000

Rent $1,395Year Built 2001

Mention Realty411 or reWEALTH and receive 1 year premium home warranty with your first purchase.

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

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

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

PROFILE OF YOUR FUTURE PORTFOLIO

“Contact me for a free cash flow analysis.”

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

TOM WILSON, [email protected] TomWilsonProperties.com

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

Continued on pg. 29


Robyn Love, Peter Fortunato and Steve Love

Solid FoundationWhiterock Capital Offers Clients a

After nearly 40 years of cumulative hands-on real estate experience, Richard Edrosolan and Anthony Patrick, owners of Whiterock Capital, Inc. know some of the obstacles that face novice inves-

tors. Many of the same questions are repeatedly asked:

* How does one get access to discounted properties?* If stable monthly income is needed, which property should be purchased and where?* Is commercial real estate to risky for a newcomer?* Should I buy for cashflow our appreciation? In California or out of state?

If any of these stumbling blocks sound familiar then it’s time to take action and access experts who can provide simple solutions to the most common real estate challenges.

Over the years, Whiterock Capital, Inc. has been there to provide answers to novice investors just starting out as well as expe-rienced investors who realize they are to busy in their demanding careers to take on real estate investing alone.

“We help individuals select the right investments and even assist them with the initial decision making as to what proper-ties in which to invest,” Edrosolan explains.

“We are there all the way through the investment cycle, from purchase, to rehab, and to the successful close,” he adds.

The Whiterock Capital Inc. niche has specialized in the rehabilitation of dis-tressed properties. They turn toxic assets into performing properties in two states: California and Arizona.

Their network of wholesalers, bird dogs, asset managers, agents, and brokers give them ample pickings of buys. Besides their formal professional network, they also rely on bandit signs and other creative market-ing which puts them in direct contact with

distressed homeowners. Whiterock Capital, Inc. is interested in

multifamily apartments complexes, bulk house packages, pre-scrubbed bank tapes, as well as individual single family deals.

When a property is purchased, improve-ments are planned immediately.

“Just putting in granite counter tops, stainless steel appliances, and knocking out a wall or two can make or break an inves-tor’s exit strategy,” Edrosolan explains.


Richard Edrosolan & Anthony Patrick of Whiterock Capital, Inc.; Photos by John DeCindis

by Bonnie Laslo & Linda Pliagas

Solid Foundation

For the buy-and-hold investor simple stag-ing and curb appeal is important because it can equate to a lower vacancy by attracting a long-term tenant.

Education is a Pillar for Success in Real Estate

Edrosolan and Patrick know that the right edu-cation and training makes a difference. In fact, both of them met many years ago at a bootcamp seminar. While discussing their mutual interests and philosophies on real estate, they realized that they had much more in common than just invest-ment strategies, and they soon began working as a team.

Disillusioned with the grandiose promises of-fered by many of the educators at the time, they formulated their own techniques and a system model based on their past investing experiences. After purchasing hundreds of properties already, they are also on pace to double current holdings and volume during the next year. Whiterock Capital, Inc. is also expanding their client base to include others who are also interested in tak-ing advantage of purchasing distressed assets in either the California or Arizona marketplace.

Edrosolan and Patrick have simplified the in-vesting process for their clients. Patrick explains: “Clients receive wholesale buyer lists, in-house programs, financing (no credit is required),

secured trust deed investment programs, private lending opportunities, and professional administrative consulting.”

Their streamlined process has created successful and profitable re-sults for many residential and commercial investors.

“We have systems and training modules both to develop your skills and enhance your knowledge, not only now but also throughout your future as a real estate investor,” Edrosolan adds.

Once an individual is a part of the Whiterock Capital investment team, they will also have the benefits of mentoring, but they will not be instructed by someone reading out of a manual from out of state. Instead, Patrick says they will be personally mentored by knowledge-able individuals who are all successful active real estate investors themselves.

“You will be supported in your education not only by your mentor, but by an assistant and a dedicated coaching director, all who are per-sonally involved in your success,” Patrick adds. A Whiterock Capital mentor is with the investor from the beginning of the program, >

3 Ways to Find Funds for DealsFinding money to invest in real estate is one of the most cited obstacles. The challenge of having to scrape money by saving can be a painstak-ing chore.While it can take years of discipline to accumulate funds, many investors may already have access to the resources they need without even knowing it. Whiterock Capital, Inc. shares three often bypassed ways investors can find the money they need to expand their portfolio.

• HIDDEN HOMEOWNER EQUITYAre you a home owner with a fair amount of equity? Is so, you should consider obtaining a home equity line of credit (HELOC), as the rates have never been lower. Additionally, by establishing such a line of credit, you can use the equity in your home (or equity in an investment property) to invest as you choose. Once established, your line of credit is usually good for up to 10 years. Most HELOCs only require minimal monthly interest payments on your outstanding balance. You can repay the balance at any time with-out a prepayment penalty, and the interest paid is generally tax-deductible.

• HAVE YOUR BOSS CHIP INIf you are a participant in your company’s 401(K) retirement plan, you may be able to borrow money (not withdraw as that might create tax penalties) from your 401(K) plan. Recently, a Whiterock Capital investor borrowed the maximum $50,000 from his 401(K) plan, citing financial hardship as his reasoning for the loan. Because of his reduced hours at the company, the hardship loan was granted. He then purchased a bank REO in Riverside County for $56,000. He spent $5,000 to rehab the home and subsequently sold it to an FHA first time buyer for $100,000. At the close of escrow he repaid his 401(K) loan in full, but he was over $25,000 wealthier than he was before the loan.

• INVEST WITH A SELF-DIRECTED IRAIf you have not heard about a self-directed IRA (Individual Retirement Ac-count) as of yet, not to worry, most people haven’t, either! The vast majority of financial institutions want simplicity in their product lines and so they only offer the plain vanilla deposit accounts, certificates of deposit (CD), stocks and mutual funds. Those assets are much easier to manage, and more importantly, generate more revenues for those institutions. Fortunately, a handful of companies will set up self-directed IRAs, which enable you the investor to invest as you choose — such as in real estate!


Richard Edrosolan

W


first in helping them to select the best investment in their area of preference, all the way to a successful close of escrow.

“Your Whiterock Capital personal service continues with quick telephone and email responses to your questions and inquiries, seven days a week, 365 days a year.” Patrick explains. Portfolio risk management is the utmost goal. The principals of Whiterock Capital, Inc. are experienced rehabbers and property managers who continuously focus on ways to improve quality and the bottom line. Patrick explains: “We are actively on site at these properties looking over everything in an effort to save our cli-ent’s money and increase cashflow.”

This type of attention to detail with a proactive team inclines investors to build a long-term relationship with the company, and some clients have been doing business with Whiterock Capital, Inc. since the formal inception of their company three years ago.

Whiterock Capital, Inc. clients receive wholesale buyer lists, in-house programs, financing (no credit required), secured trust deed investment programs, private lending opportunities and professional administrative consulting.

Besides having a direct pulse on their investments Edrosolan has managed various ways of capital raising and ar-ranging project funding over the years. His efforts maintain Whiterock Capital, Inc. with a stable and ready funding for expansion of its current assets and holdings. Currently, the principals invite submissions of houses and mortgage notes up to $200,000, as well as com-mercial apartment complexes up to $5 million. These professionals understand win-win structures, and the number of joint venture projects increase daily.

Whiterock Capital is FocusedWhile many investment firms spread

their holdings among several cities and states, Whiterock Capital Inc. prefers to focus on limited markets and instead become experts in those areas. For the past few years, their attention has been captivated by Phoneix and an area in Southern California known as the Inland

Empire. Price points are very attrac-tive, but proceed with caution. With interest rates at a historical low, it is very tempting to acquire properties fast without thinking of the responsibilities that real estate brings. Without a team and mentors to guide overleveraged, overwhelmed investors, their exuberance can get them into trouble.

Patrick is an experienced inspector and property manager who is continu-ously focusing on ways to improve qual-ity and the bottom line. The company’s inventory of properties is worth a private viewing for those looking for start-to-finish customer service. Whiterock Capital, Inc.’s mantra of “You choose the opportunity — we do the work” gives investors simple answers and easy solutions. It’s a refreshing concept to an industry once plagued with complexity and mistrust.Visit www.whiterockcapitalinc.com or contact them toll free at: 877-228-6060

Richard Edrosolan and Anthony Patrick of

Whiterock Capital, Inc.


The Tale of Two Turnkeys

Let me tell you about two great real estate deals for the busy pro-fessional. Both

are single family homes that have been renovated and are offered as turnkey rental in-vestments. Investor Special #1 is priced at $100,000 and rents for $1,200—a 1.2% rent ratio. Investor Spe-cial #2 is priced at $100,000 and rents for $1,050—a 1.05% rent ratio. Which prop-erty do you choose?

One really is a better deal than the oth-er and I’ll let you know why later. How-ever, if instead of choosing, you thought, “I can’t make a decision based on such limited information,” then you’re in the top 50% of real estate investors. In a mo-ment, I’ll help you get to the top of the class by understanding the crucial data required to properly analyze a turnkey deal. Your test will be to use this informa-tion going forward to make investment decisions based on information gathered, not on the slickest presentation or the per-sonalities involved.

First, why turnkey investments are not created equal. To the top tier turnkey property providers, turnkey means that all the elements of the investment are in place so that all the investor has to do is “turn the key” on their bank vault and watch the money flow in. Clearly there is more to it than that, but not all that much more. By our (and I mean the top pro-viders) definition, a turnkey investment property has ALL of the following attri-butes: 1. The provider is in possession of the deed, 2. The property has been care-fully selected and renovated with renters in mind, 3. The property has been leased, 4. A property management company is ac-tively engaged in managing the property. After the investor purchases the property, the property manager simply redirects the rent checks to the investor.

by Tom Wilson

Tom Wilson

Some providers call their offerings turnkey, but are missing some or all of the four essential elements. If the compa-ny selling you the prop-erty does not possess the deed, it is not a turnkey. If the seller has yet to complete renovations,

the property is not turnkey. If the prop-erty does not have rent paying tenants, the property is not turnkey. If the seller offers to “look after” the property until you find a property manager, the property is not turnkey.

Now that you understand the four es-sential elements that define a turnkey property, how do you evaluate the myriad opportunities available to you and get to the top of the class? By analyzing how each deal rates in four major categories: Location, Property Condition, Provider, and Property Management.

Analyze the LocationLocation will make or break a deal, and

we’re not just talking about corner lot or cul-de-sac. Understand what is going on in the region as well as the neighborhood. The best long-term holds have the follow-ing in common:• Broad based economy with many differ-ent employers• Growing population• High income, high education, young families• Low vacancies, lower than average fore-closures• Stable home prices year-to-year (no big swings)• Business friendly and landlord friendly local government

Understand the Property ConditionMake sure you are getting what you

pay for. Really nice properties attract re-ally stable renters. Pay close attention to the quality of the renovation. High quality

equals less maintenance and more money in your pocket. Great properties share these common traits-• Built within the last ten years• No structural problems• High quality carpet, flooring, tile, fix-tures, and appliances• Nice landscape• Good floor plan, usable back yard, 3 or 4 bedrooms, at least 2 baths, 2 car garage• Architecture that fits into the neigh-borhood and appeals to tenants and future buyers

Reference Check the SellerDo you really know who is providing

this turnkey? Handshakes make me feel good, but a reference check makes me feel better. Do not hesitate to ask for ref-erences, to check the provider’s on-line reputation, and to screen for lawsuits and bankruptcies. A reputable provider will happily answer all your questions and has dozens of happy customers ready to sing their praises. If you come across any of the following, beware!• The person you are dealing with is an agent or referral service• Any part of the deal seems to-good- to-be-true • You don’t get a firm answer about how many of their investors get loans and how often they fail an appraisal. A reputable provider will seldom fail appraisal.• You are asked to take over a contract for a raw property and cover all of the un-known expenses for conversion to a rent-al. The seller says that with a little carpet and paint the property will be rented in 3 weeks. • The provider does not own properties in the same area that they are recommending to you• The provider does not own clear title to the property (check the county records!)

Interview the Property ManagerDo you really want to question whether

you’re being overcharged to fix a leak? Do you want to worry about a lease not


being renewed because the property man-ager did not respond to your tenants? It is maintenance costs and occupancy that will make or break positive cash-flow. This is why competent property manage-ment is essential. Just as when selecting a provider, check the references of the prop-erty manager. Look for the following-• Endorsed by the turnkey provider and manages the providers own properties• Many years of experience and ample references• Fees no greater than 10% for up to 4 properties with full service and half of one month’s rent for new leases• Experience managing the same type of property you are purchas-ing (houses, not apartments or commercial)• Many other rentals in the same area so they do not need to make a special trip to check up on your property

Yes, there’s a lot that goes into analyzing a turnkey property, but it is YOUR money. Ask questions until you are satisfied, and by all means, visit the property before you buy.

Back to the BeginningBack to the two investor specials

at the beginning of this article, which are real case studies. (Names have been changed to protect the duped!)

Investor Special #1 priced at $100,000 and rents for $1,200, purchased by “Sam.” During the loan process the appraisal for the property came in short and Sam shells out another $5K to close the deal. After closing, Sam finds out that the rent was a “market esti-mate” and after waiting for 3 months and dropping the price twice, he finally gets it rented for $1,000/mo.

Within 6 months Sam is notified that the 50 year old house has exterior trim

that needs replacing because the seller painted over rotten wood, the hot water heater needs replacing (and there is no warranty), and the HVAC needs repair. His bill is greater than the net income that was predicted for the first year. The city he purchased in has only one industry, and within a year, the one new UK manufac-turing plant that was scheduled to come to town and employ 2,000 people gets post-

poned indefinitely because of economic uncertainty in Europe. Adding salt to the wound, Sam’s tenant fails to renew his lease. Sam experiences another 3 month vacancy and he has to drop the rent to $900 because of the now weaker rental market. Sam is very sorry he didn’t do his homework. Investor Special #2 is purchased by “Mary” for $100,000 and rents for

$1,050. The house is only 10 years old, comes with a premium home warranty, is already leased and the appraisal came in at value. The employment in the state is the highest in the country, the city has 25 Fortune 500 companies with diverse economies, the population is growing, rents and values are appreciating. Mary’s first tenant leased for three years. When it did turn over, the property required mini-

mal make-ready. It was leased again at $1,125 before the current tenant moved out. The cash flow exceeds Mary’s ex-pectations. Mary earns an A+ because she purchased in a top, low-risk, metro and from a reputable provider.

For more information about Tom Wilson, be sure to visit his website at:www.TomWilsonProperties.com

... how do you evaluate the myriad opportunities available to you and get to the top of the class?

Sam’s Property: Mobile, AlabamaBuilt: 1962Purchase Price: $100,000Down Payment: $20,000Closing Costs: $2450Prepaid Taxes & Expenses: $2200Additional Closing Funds: $5000Rent Estimate: $1200Rent Actual: $1000Repairs Year#1: $3600Cash out of pocket Yr#1: $32,850ROI: Yr#1: -3%

Mary’s Property: Dallas/Ft.WorthBuilt: 2002Purchase Price: $100,000Down Payment: $20,000Closing Costs: $2500Prepaid Taxes & Expenses: $3300Additional Closing funds: $0Rent Estimate: $1050Rent Actual: $1050Repairs Year#1: $0Cash out of pocket Yr#1: $25,800ROI: Yr#1: 9.5%

It was fourteen years ago that Missy McCall Hammonds found herself tiring of Corporate America. As she con-sidered new employment opportunities, she set down a number of criteria: 1) the replacement of her corporate income, something she could succeed at, no gender lim-itations, and no limit on the amount of money she could earn. It wasn’t too long before the real estate industry

piqued her interest. She looked at the various niches available and decided that the rehabilitation of properties was just the ticket for her. “I liked taking up new things and making them pretty.” She says and warns: “However, I fully understood that rehabbing was a lot more than making things look pretty; it’s updating the electri-cal and plumbing [systems] and knowing how a toilet works. It’s a full process of the mechanics and the carpentry. It meant learning a lot more than painting and making it look nice.”

Missy’s escape from the 9-to-5 grind was successful because she researched the industry for one year. She strongly suggests individuals starting a new business to begin with a plan and bud-get. “Coming from corporate, we had it drilled into our heads that with every transition we wanted to make we had to find out all the possible obstacles and then found solutions for them.” That busi-ness plan served Missy in good stead as she navigated the many challenges of her nascent business.

Her real estate business began with sales to homeowners. When the fi-

nancing completely evaporated, she was able to move seamlessly into the investor mode.

“Your willingness to change and adapt to your environ-ment…is the key to your suc-cess. Who I was when I started my business was someone that sold retail to homeowners,” she

says. “If that was the only busi-

ness I had in 2007, when all financing went away, I would not be in business today.”

Missy refers to the market in Butler County as linear, which means it doesn’t have the highs and lows that are present in so many other areas. “Property values in some areas have decreased, but in many areas they’re actually on the rise. We have a number of new businesses moving into our area and we have a growing population, which means an increased demand for properties.”

A professional person who understands that real estate is a good investment is the kind of individual who typically comes to her enterprise. “My investors understand that real estate is an impor-tant part of their portfolio but, as busy professionals, they don’t want to manage it; they just want it to act like stocks and have a return on their investment and for it to be hassle-free. My typical investor is 40 plus. At that point in their lives, they’re looking more towards their retirement and thinking long-term.”

Is America on sale? Missy believes that it is. She suggests that you come to Butler County, Ohio. “I think we have another three years of foreclosure inventory. And that’s because of government intervention in slowing down the flood of markets.”

It is readily apparent to those in the industry that the job market will play the principal role of success in the industry, and Missy is no exception. “Without jobs, people can’t make their house pay-ments. And the job losses across America were staggering the last three years.” Although total bleakness may exist elsewhere, Missy says that job market is not so glum in her home county. “Our un-employment is typically one percent below the national average.”

Missy believes that the stability of the marketplace — along with demand for properties — would be the primary reason for investors to include Butler County properties in their portfolio. With an occupancy rate hovering at 98 percent, an investor would be hard-pressed to find a more stable investment.

Visit Missy’s website: www.RetireWithRealEstate.biz

G o o d b y e C o r p o r a t e

A m e r i c aHello Financial Freedom!


G o o d b y e C o r p o r a t e

A m e r i c a

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

2625 Manha an Beach Blvd, Suite 100Redondo Beach, CA 90278

www.assetventuresllc.com (855) 798-1411

entures LLC

sset

Acquisi on and Resolu on for the note industry

• Sound Investment Strategy• Industry Leader & Speaker, Tony Mar nez• Proven Track Record of Success• Mentor to the Note Industry

MASTERS

With the right tools, education and the perfect coaching, your experience as a Self Storage Manager and Owner can be the start of a rewarding career. Kevin is dedicated to helping other Self Storage Owners and Manage-ment Teams get the best potential

his expert management tools and tricks of the niche.

www.selfstoragefacilitymanagement.comcall us today at: 1-800-884-0065

Do you own a self storage facility? Are you looking to purchase a self storage facility? Trying to decide if you want to run it yourself or have a management team in place? How do I make it successful? Maybe you are looking for an experienced management team to step in or simply want to improve your team.

Do you want that edge that will help you cut expenses, increase profits and have the best facility in town?

Kevin Rollings, CSSM, is a Teacher, Owner and Opera ons Manager for Self-Storage Facili es. Kevin has over 25 year’s rental experience at various levels of management and ownership. Kevin was once the regional su-pervisor of Alcatraz Storage located in the Indianapolis area. He went from man-ager to owner of mul ple storage facili es!

Please visit his site for details on this 2-Day AFFORDABLE Masters Workshop and get a 30 minute FREE Consulta on.

Get the best potential profits!


by Marck B. de Lautour, BBA MBAOwner, SBD Housing Solutions

The Real Estate Industry has seriously dropped the ball! And this is not a recent oc-currence….

The big winner through the past few decades has been the financial services industry. People have to invest their money somewhere and when real estate agents, brokers, and property managers made it FAR TOO complicated to invest in houses, they turned to the sophisticated and finely tuned model of the stock market. This well-oiled machine has done a great job of catering to those in their wealth accumu-lating phase of life. And it seemed that only those real estate investors that were ‘hands on’ with their investments were

the ones able to buy and properly manage rental property.

The fact that Financial Advisors have ingrained themselves in American culture to the point that anyone wanting to put some money aside for retirement is natu-rally going to do it through mutual funds or stock investments says a lot about their customer service.

Not that investing in the stock market is

a bad thing! Not at all…..but by compari-son, the fact that the real estate industry has languished behind in allowing the average John Doe an avenue to invest his hard earned money in Real Estate is a real shame.

Now dawns a new age of investing…..where geography and physical presence

mean nothing. In the same way that you don’t need to drive to

Atlanta and tour the Coca Cola plant to feel comfort-

able investing in Coca Cola stock, SBD Hous-

ing’s detailed 9-page Investment Prospectus more than prepares an investor to make an informed buy-ing decision.SBD Housing Solutions is a Kansas City based operation but has clients from as far as Brazil, the U.K.,

Australia, South

Africa and Hong Kong. Most have never seen the assets that they own, and yet are cashing the monthly rental checks every month like clockwork.

As an all-inclusive real estate invest-

ment firm, we specialize in building wealth for our clients. Taking a leaf from the Financial Planners book, we actually take the time to sit and discuss a plan of action with our clients; where do they want to invest, what cash do they have available, do they plan on leveraging their assets, when will they be looking to use the cash flow as an income source for retirement, all of which are just pieces of a very personal and unique puzzle.

At SBD Housing Solutions we handle the entire operation for our clients. From targeting properties, the acquisition, utili-ties, construction estimates, project man-agement, remodel, bill payment, leasing, and property management. Our clients know that the ‘value added’ is in the details. Being able to invest in Real Estate with the same ease as the stock market has always been the goal.

Although I am not naïve enough to think I can change an industry single handedly, I believe that we in the Real Estate services industry can all do our part to bring some credibility back to the sound investment option that is…..housing.

Why the Real Estate Industry has Seriously Dropped the Ball!

...the fact that the RE industry has languished behind in allowing the average John Doe an avenue to invest his hard earned money in Real Estate is a real shame.

training seminars, personal real estate deals, two actives sons and even speaking on up to five one or two-week cruises per year, the Loves are certainly busy, yet they always manage to have time to encourage

and motivate others to not give up on their goals and dreams of financial freedom by investing in real estate.

— article by Linda Pliagas

month,” Love explained. It’s interesting to note that the clubs are less than a mile apart and yet both of them draw large numbers of investors consistently.

REIC of LA is normally held on the sec-ond Tuesday of each month at 7:30 pm at the Double Tree Hotel in Culver City, but it’s always best to call first as they sometimes have to move the location due to large conventions. REIC of LA, founded by Phyllis Rockower, has a modest fee of $197 per year, which covers the cost of a more ex-pensive venue and other membership ben-efits too. Between juggling two successful clubs, a weekly radio program, monthly

LA Clubs Host Top Leaders pg. 19

For more information about IRCA-LA (now Prosperity Through Real Estate) or REIC of LA, contact: 818-217-4630 www.irca-losangeles.comwww.prosperitythroughrealestate.comwww.realestateclubla.com


Never Miss an Issue!

2 Years for Only $39

www.Realty411guide.com/subscriptionsBecause of our popularity and unique online marketing strategies, our publication has two distinct covers, but we have just one mission:

To Make You Wealthy, Subscribe Today!


Real Estate is cyclical; therefore, certain niches may work better than others during given markets. One thing that is NOT cyclical is

Bill and Dwan Twyford, the Nation’s most sought after real estate investing experts!

Bill and Dwan have devoted 20 years to helping people: Investors and home-owners alike. They help investors become wealthy and distressed homeowners get a fresh start.

One strategy that has worked especially well the past few years has been negoti-ating short sales. A short sale is when a house is sold for a lower amount than the mortgage owed on it. Many properties currently have large loans that are valued for far less,resulting in negative equity.

While short sales are nothing new (it has been prevalent since Dwan started the trend back in 1996 — she actually wrote

the very FIRST short sale program all the other guru’s use today), a sea of informa-tion and a ton of confusion exist on this topic. Due to the complex and sensitive nature of short sales, it’s important to learn from experienced educators who have been negotiating short sales for many years. Bill and Dwan use a THREE-STEP PROCESS that gives them and their stu-dents an average 75% closing ratio! That is unheard of in this crazy industry, yet they make it happen year after year!

> Bill Twyford,a former paint contrac-tor and single dad to two children, went through a divorce and a foreclosure and learned this business through his own personal experience.> Dwan Bent-Twyford,a single mom and former waitress at Denny’s, also went through a divorce and a foreclosure and

learned the business the same way — through a direct experience. They met at a REIA group, fell in love, got married, raised three amazing chil-dren together, and turned their personal struggles into their business. They joke, “Our MESS became our MESSAGE!”

They believe their success is partly due to the fact that homeowners can relate to them because Bill and Dwan “get it.” Soon after they began helping hom-eowners they started teaching real estate investors how to do what they were doing. Next thing you know they wrote two-best sellers, were guest speakers on many TV shows like MSNBC and Fox & friends, as well as speaking on stages with Donald Trump, Robert Kiyosaki, SuzeOrman, and many others.

Assisting as many people as possible in these economic times is a purposeful way of making money. “Sharing short sale information to everyone who needs it will help families sleep better at night,” Dwan says. “It’s a two-fold event, helping the homeowner also helps you and your family.”

“Short sales give struggling families a fresh start, which resonates with the couple because they both know what it’s like to need a second chance,” adds Bill.

When I interviewed Dwan she shared a funny story with me, “She was single-handedly raising a child and struggling at a string of dead-end jobs. She knew real estate would create a sense of stability for her daughter. She often took her daughter along and Aylawould play while mom fixed-up the properties. Dwan’s daughter (who is now 23) became so fascinated with fixer-uppers that when she was a child she went exploring a boarded up home nearby with three of her nine-year-old friends. The neighbors called the

For 10 years Bill and Dwan Twyford have been leaders in the world of short sales. Their mission of helping distressed home owners who are under water have led them to a life of success and acclaim.

Due to the complex and sensitive nature of short sales, it’s important to learn from experienced educators who have been negotiating short sales for many years.

Short Sale InvestorsReceive an EdgeShort Sale InvestorsReceive an Edge

by Bonnie Laslo

Bill and Dwan Twyford

authorities as they could see movement in the vacant property. Upon arriving, the police were shocked to find that the intruder was a child claiming to be an investor. “My mom and I do this all the time,” the 9-year-old said innocently. “We look at the houses and buy them.”

Dwan giggles as she recalls this story as she was so proud of her daughter while the other mothers were horrified! Dwan says that in order to balance her limited time she made investing a family affair. While she worked in the homes rehabbing them, her daughter would be by her side playing and painting.

One of the things Dwan loved about Bill is that he was doing the same thing: Allowing his kids to paint and play while he rehabbed his own fixer-uppers.

The Twyfords went through the trials and struggles that many people in a short sale situation are currently in. It is for this reason that they both approach their investing and short sale education from the perspective of the homeowner.“The homeowners know and can tell if a person cares for them or not,” Bill says, adding: “Always do what is right for the

homeowner. They have one chance to start over while investors have hundreds of opportunities to make profit.”

Bill advises investors to keep in mind that the banks loss mitigation departments could result in tight margins. It’s important to look at the big picture and press forward with getting deals complete. This tenacity, he says, is the key to being successful.

The Twyfords offer their #1 tips to new inves-tors: Stop buying every program that comes down the pike that promises to do all the work for you, make you millions while you sleep, and allows you to never speak to a bank or distressed homeowner. They say to stick to ONE person who has a proven track record and let that person teach you to run the same multi-million dol-lar business that they themselves are running. They say to “beware” of many of these guru’s

as most have never closed a real estate deal and most of the ones who claim to have closed deals have closed less than five before they wrote a program. In fact one guru actually took Dwan’s original program and photo copied her testimonials (with the page numbers and all) and placed them in his own program. Another shows copies of his checks from speaking events and claims they are real estate deals!

The Twyfords have closed over 2,000 documented deals and feel

with that kind of experience they are your absolute BEST BET for success because you will do exactly as they do every day – MAKE MONEY!

IN OTHER WORDS – WORK WITH THE TWYFORDS!

An investor should educate them-selves as much as possible before even attempting to negotiate a short sale, wholesale a property, rehab, or invest for long-term wealth. In the spirit of sharing valuable informa-tion, the Twyfords have created hundreds of videos sharing their real estate investing knowledge which can be seen at www.youtube.com/DwanBentTwyford.

You can also get a FREE real estate investing program by heading

to their website: www.InvestorsEdgeUniversity.com. They specialize in all areas of real estate investing:• Wholesaling• Short Sales• Rehabbing• Rentals• Bulk Buying• Subject To’s• Rent to Owns• Forensic Audits• And so much more.

These are just a small sample of the incredible programs they offer to make you the best investor possible. I have interviewed MANY investors over the years and I have to honestly say that Bill and Dwan are top-notch! Their love of the business, their ethics, their desire to truly help others is absolutely second to none!

Although I am a writer, after speak-ing to the Twyfords I’m going to give real estate investing a crack myself! I’ll write a follow-up after Dwan helps me close my first deal…!

To speak to Bill or Dwan personally Bill has given me permission to give our readers his CELL phone number – 303-870-8851. He said to tell him that Linda sent you and that he will give you a once-in-a-lifetime deal on his programs and some FREE coaching to ensure your success!

Due to the complex and sensitive nature of short sales, it’s important to learn from experienced educators who have been negotiating short sales for many years.


Kennedy filled in for her and spoke about investing out of state, and at that very mo-ment Willois knew she had to approach him with the opportunity to lead the club. Jason Kennedy joined in March of 2012.

Willois describes Jason as a perfect fit be-cause he is a “true gentleman,” one who is sensitive in fostering a non-competitive environment where ladies can reach their maximum potential. He too realized that the ladies of San Diego needed a gentler club where women could let down their hair without feeling intimidated. When one enters through the club’s doors, a sea of femininity awaits. The color pink is so boldly displayed in a variety of shades throughout the room: Pink balloons, pink table cloths and pink flyers. >

Continued on pg. 52

she feels this route is risky for new inves-tors to take. She admits that she is not “flip happy”. Instead, the club founders want

to emphasize the message that true wealth is built by holding assets

long-term. “Slow and steady wins the

race every time,” Willois says. She adds: “The club has at

its core the know-how to build foundations of adequate cash

flow.”Even though the clubs name has

“Lady” in it, men are welcomed to the group. Currently, men make

up about 40% of the attendees and 50% of their online community.

As fate would have it, in January 2012, Jason’s wife, Stacy, was scheduled to speak at the monthly event, but she was eight months pregnant at the time and realized she had over committed herself. So Jason

by Linda Pliagas

Real estate investing is a diverse business. A savvy investor can make money in a

variety of ways from flipping to land banking. Jasmine Willois and Jason Kennedy’s main strategy for success is buying and holding rental properties out of California, which is a niche that was rarely touched upon at the groups they frequented. So in February of 2010, Willois decided to start the Lady Landlords of San Diego with Stacy Kennedy, to educate others on how they could maximize their dollars and gener-ate more cash flow outside of the Golden State.

Willois says that many investment groups emphasize rehabbing for profit, however

Justin Harrison - AL 205.616.3761Julie Harrison - MS 601.291.0689

San Diego’s Newest Club Caters to Female InvestorsIt’s a Lady’s World


Jasmine Willois and Jason Kennedy

“Show me the money!” You say, Ok, I will.

It’s actually in plain sight and yours for the taking, if it weren’t for that one thing that stands between you and it. That thing is fear. Fear is what stands between the money you’re mak-

ing right now and the money you want to make. Just on the other side of that fear exists an abun-dance of wealth, freedom and happiness. Big money! If you could only figure out how to conquer that fear, that big money would be yours. Such a simple con-cept, but it almost seems insurmountable, doesn’t it?

What? You’re not afraid of anything? Fear isn’t your problem?

Well... if the lack of time, money, credit and/or knowledge has stifled your real es-tate investing progress, fear is your prob-lem. The reason most would not admit that fear is their problem is because fear comes in so many different shapes, sizes, names and intensities that they don’t recognize it for what it really is. It’s not always called fear, sometimes it sounds like:

•I’ll call that FSBO tomorrow.•There aren’t any deals out there right now.•I can’t qualify for a loan.•The REO agent won’t call me back.•The market is saturated with other inves-tors.•I’ll wait until the election is over.•The market hasn’t hit bottom yet.

Fear, or any variation of the word, isn’t mentioned in any of the above examples, but they are all founded on fear. Until you recognize fear for what it really is and

learn how to conquer it, the big money you seek will forever exceed your grasp.

Through my own personal experiences and now through several years of coach-ing others in their real estate investing, I’ve

come to know fear for what it is 99.9% of the time: False Evidence Appear-

ing Real (F.E.A.R.). Although I can’t think of any fear at the

moment that I’ve experi-enced as being real, I’m sure there’s an excep-tion, so I left the .1%

open to satisfy that ex-ception.

Fear, literally, is a distressing emotion aroused by impending

danger, evil, or pain. Fear is a basic sur-vival mechanism related to the behaviors of fight, flee, escape, or avoidance. The capacity to fear is a part of human na-ture. This emotion is both learned and in-herited; it is a lesson that has been passed on from generation to generation beginning millions of years ago when humans initial-ly learned to fear the likes of saber-toothed tigers and hungry wolves (now that’s what I call impending danger, evil, or pain!). The last I checked, threat from these beasts did not interfere with my last attempt at closing a deal. How about yours? Probably not, but everyday fears that seem just as daunting do.

What is important to understand is that the vast majority of fears we face cannot be categorized as impending danger, evil, or pain. There are few things out there that will kill us or cause us physical harm. As long as we look both ways when crossing the street and steer away from dark alleys at night, most danger, evil, and pain can be

virtually eliminated from a person’s life. Then why does fear still stop us? The an-swer is simple. Whether a threat is real or imagined, the mind will not automatically make the distinction. The mind will initial-ly categorize everything as a saber-toothed tiger, and unless you ignore that initial as-sessment and consciously re-categorize your fears for what they really are... False Evidence Appearing Real, you will forever fall short of your personal potential. Simply put, the fear we experience today is strictly psychological. It’s imagined. It “appears” real and dangerous, but it’s not.

Whether it’s the lack of time, money, credit and/or knowledge that’s hinder-ing your real estate investing, you’ll want to know that it’s not those things that are stopping you. It’s the fear, or the unknown, around those circumstances that stop you;

And this is our clue as to how to conquer fear. The “fear con-queror” is action. Not only will action produce your results, it will conquer and cure your fears. Conversely, inaction, indecision, and procrastination fertilize fear causing it to grow.

Simply put, take action in the face of your fears and your fears will disappear.

But! Easier said than done, right? Indeed. But, there’s an ex-ercise you can use to make tak-ing action in the face of fear easy.

Yep, easy. Imagine what your income, or your life for that matter, would look like if taking action in the face of fear were easy. The sky is the limit!

In the interest of helping you reach the sky, I’m about to introduce to you the “easy” way to conquer fear so you can take actions that will produce the results you desire. I call this easy exercise the False Evidence Test. When executed with integrity, the test flushes out the false evi-

There’s Big Money in Conquering Your Fear: And Here’s How to Do It!

Continued on pg. 61

by Matt Theriault


Matt Theriault

The California market is as hot as its deserts and as high as its mountains. The foreclosures are getting scooped up by savvy all-

cash investors who then rehab them and sell them for a quick profit. The dis-tressed market is creating phenomenal opportunities for investors. But now that inventory is shrinking will we see the market rise even more? Is their Shadow Inventory still yet to be released? To get a view on the state of real estate in California we talked with seasoned veterans Ruth Ortiz and Christian Yepez. They are the principals in the firm USA Real Estate Group, LLC, and they specialize in the rehabilitation of properties in southern California. They are known as the “Property Flip Pros” for their unique ability to find deals and turn a profit for their investor partners in seemingly non-existent situations.

Currently, Chris and Ruth flip about four to five properties per month throughout Southern California. A re-cent deal they rehabbed was a property on La Verne Avenue in East Los Ange-les. They purchased the two bedroom, one bath house for $136,000. It was a pocket listing brought to them by an-other broker. The total rehab costs were $25,000. The property was put back on the market at $249,500.

Within three days it received ten offers and went for the asking price

of $255,000. Ortiz says the outcome was fantastic because they invested in a quality rehab, which included a full kitchen and bath remodel, new floors, interior and exterior paint, landscape, plus new appliances and high-end fixtures.

This sample deal is just one of the success stories that Christian and Ruth can share from their nearly 20 year real estate business. Ruth got her real estate license right out of high school. At the beginning of her career, she said she was doing property rehabs without really knowing what they were. Early on, while taking classes in real estate, she met Christian. They decided to go into business together and their business relationship progressed into marriage. Eighteen years later, both partnerships (marriage and business) are booming.

Coming Back to California

Chris and Ruth may be slam-dunking deals now but two years before the crash, they voluntarily left the Cali-fornia market to seek greater return elsewhere. “We felt that properties were over-inflated. We sensed that something was going to happen,” Ruth recalls.

They recognized that the high prices that forced them out of the market were artificially created. “Prices were ridiculously high. As an investor, you wondered how long this was going to last and how were you going to make money. We got nervous and that’s why we decided to get out of state.”Christian and Ruth ended up going out of state and working the Texas market (San Antonio) for awhile. “Whatever it took to get the job done, we did it because we just didn’t feel there was enough room to make money in Cali-fornia.”

Whereas others took a bath trying to force deals in a constricted market,

Ruth and Chris used their accumulated knowledge and gut instincts to know when to get out.

“I had already experienced the crash of the ‘’90s when I was fairly new in the business.”

When asked how this crash com-pared to the others, Ruth replies: “The current crash was totally different. This crash was more like a tsunami, a totally different animal.”

Ruth and Christian believe that, a key to understanding where we are today in the California real estate market is knowing what precipitated the recent market crash. “I think the artificially high prices were caused by government and political manipulation,” Ruth ad-mits. “It’s an attempt to escalate prices so people will go out and refinance and build up lines of credit.”

Christian says he remembers a time when “If you were breathing and not in prison, the banks would make you a loan and hand you the keys to a home.”

Ruth and Chris believe the real estate industry nationwide continues to be ma-nipulated by the powers that created all this. “The crash is being handled not as a quick elevator ride to the bottom, but more as an elevator ride with intermit-tent stops on various floors on the way to the bottom.”

These expert investors say the market is still shaky and they caution novice rehabbers to be careful when buying for profit. “We still have a way to go. We’re almost at the bottom, but we are not there quite yet.”

In the meantime, Christian and Ruth will continue to take advantage of the distressed California market by doing as many deals as they can before the market changes yet again.For more information on rehabbing with Christian Yepez and Ruth Ortiz, contact: 562-304-7787 or visit onlinewww.CaliforniaHomesRepos.com

The Scoop on the California Market withthe So Cal “Property Flip Pros” by Isaac Newark III


The ‘Property Flip Pros’

www.southwestcashflow.com

SouthWest Cashflow is commi ed to delivering investors a turn-key solu on in real estate. We help create passive cash flow, thus

securing your financial freedom.

Phone:(800) 696-1423

www.southwestcashflow.com

SouthWest Cashflow is commi ed to delivering investors a turn-key solu on in real estate. We help create passive cash flow, thus

securing your financial freedom.

Phone:(800) 696-1423

South West Cashflow is committed to delivering investors a turn-key solution in real estate.

We help create passive cash flow, thus securing your financial freedom.

SouthWest Cashflow is a company of experienced property professionalsspecializing in acquiring, repairing, and managing high-quality, cash-flowingproperties in several markets across the country.

Recent Property Additions

Profitability. Security. Stability.Having purchased and sold over 1,500 homes nationwide, we know what it takes to acquire cash-flowing, turn-key properties.

Your hard-earned money is invested into a tangible asset that our newly emerging “renter” society needs - housing.

Own property in stable neighborhoods through a company with a history of solid acquisition, rehab, and management.

$72,000 $1,700,000$87,900

$74,900

We have options that work for everyone from the passive investor to the person looking to aggressively build their portfolio.

Carolina Liquidator and its a�liates are pri-marily a real estate investment company that works with buying, selling and holding real es-tate. With over 34 years combined experience in the Real Estate and the Mortgage industry we are able to help you achieve your real estate goals in ways that otherwise may not have been possible. We specialize in the metropolitan areas of Charlotte, NC; and Rock Hill, SC.

Our Rental Homes are Turnkey Ready by Strict Standards:

1. New heating and air system with 10 year warranty2. New Water Heater with 5-year warranty3. New appliances, stove, fridge, dishwasher, microwave with 5 year warranties4. Tile �rst �oor of home, including living area, kitchen, baths and laundry rooms.5. Paint interior of home,exterior, if needed6. Replace plumbing and electrical as needed7. New carpeting in the bedrooms8. Tile or granite counter tops9. MISC, door stoppers, smoke detec- tors, light switches and covers etc.10 New lighting and/or ceiling fans

** Complete turnkey properties set for retail standards **

www.carolinaliquidator.com

LISTING CAROLINA LIQUIDATOR has an investment opportunity that works for everyone.

Finish it with this line:

Please add their contact info too:

Carolina Liquidator, LLC.454 South Anderson RoadBTC 507,Rock Hill, SC 29730Toll Free 1.800.754.2911

We strive to build real estate portfolios one house at a time for our clients!

Carolina Liquidator, LLC.454 South Anderson RoadBTC 507, Rock Hill, SC 29730Toll Free 1.800.754.2911

by Bonnie Lalso

With the low cost of living, expanding finance and technology infrastructure

and good climate, the Charlotte, North Carolina market is projected to have increased investment op-portunities.

Forbes magazine rated it as one of the top cities to stretch a paycheck, which means even more families will move into the area, increasing the amount of people looking to rent and purchase properties.

Due to the city’s existing growth trend, Charlotte was able to handle the downturn in the economy better than most other cities. It was is also rated as one of the fastest-growing cities in America, according to the Charlotte Observer, Forbes, and 24/7 Wall Street.

Carolina Liquidators, a bou-tique real estate firm in Charlotte, is helping investors capitalize on the burgeoning local market. The owners, Alex Franks and Kevin Burrell,, have over 35 years combined experience in real estate and have been helping investors connect with the opportunities available in their area.

“Charlotte is in the spotlight now, it used to be the investors’ hidden gem. But that’s no longer the case,” Burrell says, adding: “The secret is out, and the savvy investors are coming in from around the world.”

Sales have quadrupled in the last few months for Carolina Liq-uidator. Burrell says the numbers speak volumes “If that’s not a sign that Charlotte is the new market that everyone is heading to, I don’t

know what is.”They both have worked with a wide

range of levels of experience: From the novice buying their first invest-ment, to the seasoned investor buying their 100th property. They strive to make things as easy and informative as possible. Burrell and Franks say their goal is to educate buyers on their market and allow them to invest at their pace, knowing that once they see their returns, they will continue to buy ad-ditional rentals.

“Charlotte has already made the shift back into a retail market,” Burrell ex-plains. “Builders are back in full blast, it’s a great market right now. Values are not going down, and I can assure you in a few months the same homes you’re

purchasing now will be selling for $5,000 to $10,000 more.”

Investors should take note that Charlotte is cur-rently number two in the nation for appreciation and 9th for growth.

Charlotte is in the 5th consecutive month for home appreciation. On average, for the last five

months the city has gone up 1% per month.

“ New developments are going up literally everywhere,” according to Bur-rell. As the city’s economy expands so are the city’s greenway projects, which

helps residents and families experience well-rounded living spaces. Currently, the city of Charlotte has an extensive trail system called the Carolina Thread Trail. It’s a regional trail network that connects 15 counties and more than 2.3 million people. The volunteer and community partnerships have helped create over 93 miles of trail threading open space, trail ways, riverbeds, and urban areas throughout the Carolina region.

With many number Fortune 500 companies making their business base in Charlotte and the amount of new construction taking place, Charlotte will continue to attract residents from around the nation seeking a better life, as well as investors from around the nation in search of secure returns on their investments.

For more information about the Char-lotte area market, please call Carolina Liquidators at: 803-325-195 or email: [email protected]

mar

ket a

naly

sis

Charlotte, North Carolina: Cash Flow with Southern Hospitality

MARKET HIGHLIGHTS:* 9th in the nation for growth* 2nd in the nation for appreciation* 6th for the most affordable cities* Ranks among Top 10 best places to live* Charlotte Airport under going a one billion dollar expansion* 17th Largest City in the US.* Home of the Panthers, Charlotte Bobcats and the Nascar Hall of Fame* 2nd largest banking center in the US behind NY, and home to Bank of America* City has 11 Fortune 500 companies* Ranked #1 Least Expensive City for Business Travel.* Ranked #1 for “Happy Young Professionals”* Strong rental market, 40% of the population rents* Increasing Rental Demand with job and population growth

www.CarolinaLiquidator.com“ ”803-325-1925

Market Spotlight: South East Region


Alex Franks and Kevin Burrell














Wow, you have the keys! NOW WHAT?

You are at YOUR self storage facil-ity. Even though occupancy is lower than you want it to be, suddenly you feel your excitement level building. Why? This is your dream; you are an entrepreneur now. You see the future, your dream, and are ready to make it happen.

What does the average renter think about when they think self storage? Downsizing? De-clutter? Too much stuff, but want to keep it?

Think about how often you see self storage facilities. It must be a busy busi-ness with people storing their treasures, because self storage is everywhere.

It would be nice if those of us in self storage had a magical self storage wand to wave and “Voila, we have 100% occu-pancy!”.

Unfortunately the average is 76% oc-cupancy. Why? Because we do not use everything available to us. So, how do I promote my facility? What will make my place stand out and above the rest?

Owning or managing a self storage facility will allow you to get to know the customer service industry up and close and personal. BUT, it goes beyond that!!!

How do you spread the word about your facility? Do you do any of these?

•What is your web presence? Do you have a website? Is it accurate? Does it do what you want? Have you tried local advertis-

ing? Flyers, newspapers and signs.

•Community sponsorship; i.e., churches, community sports, parades...

•Media: do you have a Facebook or Twit-ter account? Air spot on the radio, TV news commercial?

•Your current clients: Did you let them know that there was a change in manage-ment, have you asked them to tell friends? Have you let them know you appreciate them?

•Are you promoting it: car wash, free dump day, customer appreciation day?Typically when visiting a self storage unit facility, you will be greeted by the self storage manager or owner.

First impressions are always the BEST! Customer service: That’s a huge key to success in this industry. We go through a checklist in our training, it goes something like this:

•Find out the needs: large vs. small, long term vs. short term

•Why do they need self storage? Then appeal to them on that level: moving, busi-ness, divorce, downsizing, college student.

•Have you told them about the discounts, perks and added advantages you offer? 24 hour security, easy rental payment, temperature controlled units.

Market Your Self Storage Facility at

Maximum Velocity!

•Don’t forget to tell them about how they can save money: referrals, upgrading, first month free, savings for auto pay.•Let them know about extended services: need a truck? How about a business center? Boxes? No problem we offer those here. Let them know everything that they can do in your one stop location.

•Have them fill out a visitor’s card and the show them around, let them know the units available in the size they want. **Extra tip: follow up with them if they leave and reach out asking if they found what they needed. If not you are still there to help.

You can bet that “in the day of the life” of a self storage owner or manager, it will rarely be a dull one. It takes patience and the outstanding ability to communicate well with both agencies, your staff and your tenants.

Your potential hinges on happy tenants. With the right tools and the right educa-tion or coaching, your experience as a Self Storage Owner or Manager can be the start of a rewarding career in the self storage industry.

Kevin Rollings, CSSM© is the owner and CEO of Alcatraz Storage, Hoosiers Self Storage, and Self Storage Facility Management. Whatever the situation is Kevin and his team have the answers! Visit online at: www.selfstoragefacility-management.com and get your 30 minute evaluation FREE!

by Kevin Rollings, CSSM©

Market Your Self Storage Facility at

Maximum Velocity!

by Randy HughesMr. Land Trust

What is a land trust? Why do I need to use land trusts? Both are

very important questions. But let’s be straight forward with this article. You have worked very hard to accumulate prop-erty for investment. You put yourself, you family, and your children’s future at risk invest-ing in real estate.

Do you realize that one false move with just one of your properties can cause you to lose all of your hard earned invest-ments? One careless tenant can be injured on your property and the world will fall all around you. Ask yourself the follow-ing question “Can you control what is happening in all of your properties right now – this minute?” Is it possible that a careless tenant can be injured or die tonight in your rental property? This happens every day in America.

You need a land trust for each property. You need to “insulate” each property from

the others. You need the knowledge that your attorney doesn’t have on this asset pre-serving technique. Why work

so hard to have one uncontrollable tenant event cause you to lose all of your proper-ties? Come on! You are working very hard to build your asset

portfolio. Why lose it now?

Land Trusts are the first line of defense to insulate you from the millions of lawsuits happening in America every year. The most dangerous terrorist of the 21st century that you need to fear is the contingency fee lawyer! Do you want protection from the contingency fee lawyer or would you rather have a bare knuckle fight with him without any defense guards in place?

You have probably noticed that it is VERY difficult to find any information about Land Trusts and how they operate. That is why people from all over the United States come to my website to find accurate information about Land Trusts. Most at-torneys do not know how to set up and administer a Land Trust (they receive only three hours…if any, of trust educa-tion in law school). Many attorneys have purchased my home study course or attended my seminars to educate them-selves on land trust law.

Do YOU Need a LAND TRUST?

EarnÊconsistent,ÊpassiveÊincomeÊinÊyourÊportfolioÊutilizingÊPRIVATE LOANSÊandÊTAX LIENS.ÊOurÊfreeÊgiftÊtoÊyou:ÊTheÊMMGÊCapitalÊGuideÊtoÊTrustÊDeedÊInvestingÊLogÊontoÊMMGInvestors.comÊforÊmoreÊinformation.

BEÊTHEÊBANK.SAFETY.ÊSECURITY.ÊDOUBLEÊDIGITÊRETURNS.

Continued on pg. 60


by Lamarr Baxter

Recent statics show that up to 10,000 Baby Boomers per day will turn 65 for the next 19 years. Sadly, up to 80% of the

that population either lack a retirement account or have an underfunded retire-ment account to sustain them in their retirement years. Part of this problem is attributed to the economic downturn that occurred in 2008, which is still haunting many of us in the present.

Over the past 50 years the population has been taught to fund an IRA or 401(k) along with other miscellaneous retirement related accounts and all that would be fine at the age of retire-ment. Another segment of the population had depended on the equity in their real estate to serve as their primary, additional and/or supplemental retirement savings vehicle to serve as their income source in retirement. Unfortunately for many, that plan is no longer a viable plan based on past retirement planning practices with declining returns in the stock market and declin-ing real estate values resulting in negative equity for a vast majority of the population whom purchased properties prior to the 2008 economic meltdown. This can all be reversed by

incorporating the use of a self directed IRA into your retirement planning strategy by allowing you to take control of your retire-ment funds, choosing a wider array of alternative investment options outside of the stock market and having the ability to TRULY diversify your investment portfolio.

The ability to TRULY diversify your retirement portfolio is key to growing and securing your retirement nest egg. The historic rule for a sound investment strategy has always been “diversify”. Unfortunately, many of us were not diverse enough in 2008 when the stock market crashed. The reason being is that ALL of your funds were invested in a single investment engine, the stock market. Imagine if you had the opportunity to invest in other asset classes outside the stock market that weren’t affected

by the crash, it could have resulted in losses not as great as those real-ized in having all their money in the stock market. While I believe stocks, bonds, mutual funds, money market accounts should be a part of your retirement portfolio, others alternative asset classes should also be included such as:

• Real Estate• Secured Private Notes

• Private Placements/Private Shares• Precious Metals• Business Investments• Secured Business Loans • Accounts Receivable Factoring• Seed Capital For Starting • Your Own BusinessThe above listed investment options are just some of many

options available to you using a self directed IRA. The list also reflects the type of investments that are in demand for capital that could grow your retirement accounts faster and more securely than some of the traditional investments in which you have invested in the past. With a self-directed IRA,

your only two investment restrictions as it relates to asset classes are life insurance and collectibles. Outside those two investment class restrictions, you have almost unlimited investment options available to you using a self-directed IRA.

It’s almost a certainty taxes will increase in 2013 based on the current economic affairs of our country. There-

fore, anticipate higher income taxes and capital gains taxes on investment in 2013. In order to reduce and/or avoid taxation in these two areas would be to consider establish a self-directed IRA, in particular a self-directed ROTH IRA in 2012.

Making your investments with a self-directed IRA funds versus private capital allows you the ability to defer taxes on your gains or not pay taxes at all on the gains with a self-directed ROTH IRA. The rules are as follows for avoiding taxation on growth within a self-directed ROTH IRA:

The ROTH account must have been established and funded with for at least (5) years; The account holder must be 59 ½ or

Continued on pg. 52


The ability to TRULY diversify your retirement portfolio is key to growing

and securing your retirement nest egg.

BRIAN DAVISDirector of Business Development (San Diego/SOCAL)3111 Camino Del Rio North Ste 400San Diego, CA 92108Phone/Cell (619)-892-2438Fax (888) 706-9556Email: [email protected]

Website: h p://www.accuplan.net/SD/index.htm

We are experts in Self-Directed IRA and 401 setup and account administra on. A SElf-Directed IRA/401K is a re rement account that you directly control. You direct the investments of your choosing.

BRYAN CALDERONDirector of Business Development (Orange County/SOCAL)Irvine Towers18100 Von Karman Ave., Ste. 850 Irvine, CA 92612Bus (949) 705-4554Cell (949) 233-5866EFax (949) 242-2730Email:[email protected]: h p://www.accuplan.net/OC/index.htm

LAMARR BAXTER Director of Business Development (Northern California)9245 Laguna Springs Dr. #200Elk Grove, CA. 95758Phone: (916) 509-7150Direct: (916) 708-0235Fax: (916) 405-4000Email: [email protected]: h p://www.accuplan.net/norcal/index.htm

It’s Your Future.Take Control.

Open an IRA Account online now.

GET YOUR RETIREMENT FUNDS NOW• NO PENALTIES • NO TAXES • NO AGE REQUIREMENTS

• EVERYONE QUALIFIES • HAVE YOUR FUNDS IN LESS THAN A WEEK

Got 401K/IRA?

Let us teach you how!

Most of our clients invest their IRA/401K’s in the following:• Real Estate - Rental Proper es & Raw Land• Trust Deeds & Mortgage Note• Joint Ventures & LLC’s• Start-Up and Private Companies

Gain control of your re rement accounts and invest in something you know.

• English-speaking paradise• Closer to most of US than Hawaii• Very strong privacy banking and asset protec on• Extremely low TAX jurisdic on• Friendly people• US dollar accepted• Fee-simple tle: Own property exactly like in the US or Canada• Excellent re ree program• Small, stable government

Visit Belize! You Will Not Belize It!Invest in Cash Flow Property Located

in a Tropical Paradise!

GO OFFSHORE TO MAKE MONEY AND SAVE ON TAXES!

ONLY SERIOUS INQUIRIES, PLEASE.

[email protected]

A few years ago, Michael Newton arrived at our magazine’s invest-ment mixer held in West Los Angles. He was eager to learn

all he could about real estate and was already way ahead of the class due to his emphasis and years of real estate education.

“ My parents have owned rental property since I was a teen-ager,” admits Newton, “but the beginning of my own journey be-gan with my company 401(k) administrator recommending two books, The Millionaire Next Door and Rich Dad Poor Dad.”

Newton says that Rich Dad Poor Dad opened his eyes to another way of thinking that he had no exposure to prior.

After his financial awakening, Newton was eager to take ac-tion. He purchased his first rental, a single family home, in North Las Vegas. Shortly after that he purchased three rental homes in Kansas City, MO. Next, he closed on three more rental homes in Dallas.

“All three Dallas homes are brand new construction rentals with great terms, 5% down and 95% financing,” he explains.

Newton finds great deals because he focuses on research,

which is essential for any good investment. He doesn’t just rely on Google Earth, he physically goes to view each investment before he buys it (key word: before!).

His most recent acquisition even took him outside of our nation’s borders . It is an investment opportunity that excited him so much that he contacted our publica-tion with an urgency to share it with our readers.

Let me set the stage: Imagine having an ocean-front home with a private dock leading you to the pristine and spark-ing Caribbean Ocean. Imagine feeling a cool breeze through your hair and being able to hear the seagulls and wind sing be-cause there is silence in the air. Imagine having a beach just for you and your loved ones to enjoy without having to worry about privacy or security?

While ocean-front property is the U.S. is a luxury that only celebrities and CEOs can afford, tranquil and clean beach living can be a reality for the rest of us in beautiful Belize.

“Belize is gorgeous, fun and friendly to foreigners,” Newton says, adding, “It boasts white sandy beaches, turquoise 80 degree water, rain forests, Mayan ruins, and has the largest living barrier reef in the world!”

Surprisingly, Belize is closer to most of the U.S. than Hawaii, and it is the only English speaking country in Latin America.

Mixing Business with PleasureDr. Michael Newton discovers

a tropical paradise with a fantastic ROI

Continued on pg. 55

19 Cents on the DollarInside a Note Deal with Tony Martinez, President of Asset Ventures, LLC

strategy


“We want to make sure our investors are protected,” says the founder and president who has over 18 years in the industry. He adds: “We have multiple avenues for a successful investment. That’s one of the advantages of investing in notes as opposed to investing in properties. When you invest in properties, you’re limited to the options of the marketplace. With notes, you have exit strategies.”

Martinez entered the industry as a build-er back in 1989. During his early years in the profession (dealing with a lot of REOs and short sales) he became particularly aware of the banking industry’s desire to rid itself of delinquent properties through the short sales arena. As he became more knowledgeable of the process, principally by acquiring short sales notes (non-per-forming or delinquent notes) directly from banks, he also came to realize how he could help people retain their properties, at the same time.

Asset Ventures are negotiating about 400 notes and have an additional 700 notes in the pipeline. Their goal is to acquire about 100 notes a month and Martinez says they’re on pace to meet or exceed that goal for the current year.

Based in Redondo Beach, Calif., Asset Ventures has three primary responsibili-ties: resolution (helping owners stay in their house); acquisitions (helping inves-tors make a positive cash flow return on their investments); and teaching and mentoring in the indus-try.

The notes that Asset

Ventures selects go through rigourous research. “What we do in the research phase is we have contact with the banks and lenders and they’ll give us a pool of notes that’s limited to address, the amount of the loan, the fair market value, and just a limited amount of information,” Martinez explains. “Then we have to do our due diligence, our data mining. Every note is then researched against a one hundred point checklist to see if we want to purchase it and move on to the next level.”

Each pool of notes obtained by Asset Ventures from their network of banks involves anywhere from 50 to 500 notes. The pool would be packaged with very similar types of notes and an initial assess-ment would be done on a small sample (say, 25 to 50 out of 500) to get a feel for that particular pool. Asset Ventures has specialized researchers who perform this task. Tony says that “Researchers don’t do any analyzing, they just gather the infor-mation pursuant to the checklist. Then it goes to the next level where management analyzes the data. They go through about 500 files in a week.”

We asked Martinez to show us the in-side mechanics of one of his recent deals.Our case study involves the Arrezo Deal.

Begun in February of this year, the Ar-rezo Deal was completed in mid-August. Martinez says “Once we completed the

research phase of the deal, we began the acquisition process. We looked

at the numbers on the Arrezo Deal; we bought it for 19 cents on the dollar. It was a non-performing

second mortgage. The biggest positive, when we bought this was – combined with the first [mort-

gage] – we had equity in it. The Arrezo Deal had a second lien with an unpaid balance of $86,000. We paid $9,600 for it. When the owner stops paying on the loan, the bank has delinquent debt. They benefit from selling it off.

As a non-performing or toxic debt, the bank would package it up and sell it to someone like myself for pennies on the dollar because it doesn’t have face value to them anymore.”

Of utmost importance, Martinez believes that it must be understood that “In the acquisition phase, we don’t buy the property, we buy the paper. So we’re the bank now. What we do is, we’re buying the collateral paper, which is a bank note. So, if it was owned by Chase or GMAC or Wells Fargo for example, it’s now owned by us and we’re the bank. We don’t necessarily need to take ownership of the property but we’re still going to make money because they’re obligated to pay us. So we’ll go to the borrower and create options for them to get back on their feet. This is how we help people while creating positive returns for our investors. Where they may have paid $500 a month before, they may now pay us $200 a month. In the Arrezo Deal we actually settled the note for the homeowner at $22,000. So they paid us $22,500 and we wiped away $80,000 worth of debt. The in-vestor just made $13,000 profit, which equates to 235 percent return on their money. Everybody wins.”

And that is the main goal for Asset Ventures — that the investor and also the homeowner are successful.For information, visit Asset Ventures online at: www.assetventuresllc.com

Notes provide multiple benefits for investors, the key is you can buy non-performing notes for pennies on the dollar.

In addition, Tony Martinez, president of Asset Ventures LLC, says notes offer many more options to create a positive return.


Tony Martinez


Straight Talk with theInvestment Property Experts

Daniel ButterfieldSteve Taplin

By Stephanie B. Mojica

In the midst of one of the most economically chal-lenged times in history, the

Phoenix, Arizona real estate market is helping some inves-tors yield significant financial returns.

As people shift from placing stocks, bonds, and certificates of deposits into their 401(K)s or IRAs for retirement, they often need professional expertise. That’s where a company such as AZ Investment Property Experts, or IPX, comes in.

The firm, owned by seasoned real estate investors and busi-ness entrepreneurs Steve Taplin and Daniel Butterfield, has been helping seemingly average people earn an 18 percent or higher return on investment. In a supposedly down economy, such yields are nothing short of remarkable.

Butterfield, who has more than 15 years of real estate invest-ment experience, says education for investors is now even more important than ever. He and Taplin not only hold complimentary monthly events for current and prospective clients, but also they co-host a popular weekly talk radio show, “Real Estate – STRAIGHT TALK.”

The program airs on Money Radio 1510 AM, which is Ari-zona’s premier business and financial talk radio channel. Also, the network’s management has publicly lauded Butterfield and Taplin as leading real estate investment experts.

“We feel an educated investor is a knowledgeable investor, which also sets accurate and obtainable expectations,” Butter-

field says. “We are seeing a record number of investors use their 401(k), IRA and Roth to invest into single family home real estate. Many of these investors have never purchased real estate before, thus they are looking for a full service turn-key provider to assist them.”

But even investing in one or two single-family properties is not a fool-proof proposition, Butterfield warns.

“Most investors are scared of the stock market due to the volatility, but they are also not educated enough to invest in real estate,” Butterfield says. “It is very difficult to find the right type of real estate deals in this current economic situa-tion.”

Some beginning real estate investors hire a property manage-ment company to assist with matters such as collecting rent and arranging for repairs. However, most beginning investors do not

have an “exit strategy” planned, which eventually gets them into financial trouble, according to Butterfield.

“Try to focus your efforts on making the least amount of mistakes,” Butterfield says. “The best way to do this is to work with a turn-key professional that can help you identify, buy, renovate, rent and even sell your first real estate investment.”

At IPX, which has team members in Phoenix as well as the Philippines, experienced investors work closely with all clients. Some clients are not interested in a pro-active role, but Butterfield and Taplin provide plenty of opportunities to turn novice investors into experts in their own right.

Phoenix is certainly not the only hot spot for real estate investments in the United States, but it has many ad-vantages over other geographic locations. Single-family investment real estate in Phoenix generates a minimum of 8 to 12 percent cash-on-cash returns during the rental period and about 20 to 30 percent profit when the investor sells the house, according to Butterfield. Also, Phoenix

has mostly attractive neighborhoods and low rental vacancy rates.“Granted there are cities such as Memphis that could poten-

tially yield similar returns but they also have extremely high vacancy rates and these types of rental neighborhoods do not have a high potential for resale,” Butterfield says. “Investors may certainly find nicer homes in Venice Beach, however the cash-on-cash returns are extremely low or even negative in some cases with financing, thus as an investor you would be relying on pure speculation to make a return on your investment.”

To schedule a complimentary investment consultation with IPX, visit www.ipxcompanies.com or call (602) 254-6244.

When dealing with real estate invest-ments, one must

go through many steps of due diligence. Here are my top 10 keys to a successful real estate investing.

(1) EDUCATION - If you are not experienced in real estate investments the very first thing you should do is to get educated. Take the time to

find out what all of the risks are in the in-vestment type you are interested in. Find others that can help educate you on the investment type, which are not involved in the transaction you are doing specifically, so there is no conflict of interest. Buy books, tapes, and go to multiple seminars in order to continue your education, and don’t buy the $5,000 plus books and tapes sets from the gurus. Buy your educational material from the bookstore and save thou-sands of dollars.

(2) GOAL SETTING – If you do not have a goal lined out for your real estate investments how do you plan on getting there? Most investors buy one property, or invest based on emotion rather than having a set goal in mind.

For example, you could have a goal of obtaining $30,000 per month in passive rental income from your investments through buying single family rental homes and apartment buildings. Your goals should be clearly defined and should include protections and risk mitigation techniques to make sure it is a stable vi-able plan that can be obtained.

(3) BUILDING YOUR RESOURCES– You WILL NOT become a successful real estate investor without resources. In real estate, resources include capital investors, property leads, team members and much more. For this you must go to network-ing events if you do not already have your

resources built. It’s im-perative that you go to networking events and expand your relation-ship base. Real estate is a team sport so if you do not go network you cannot build your team.

(4) BUILDING YOUR TEAM – In order to make your investments work you must build

your team. Some of the team members you need are real estate agents, brokers and bankers, private lenders, appraisers, CPAs, attorneys, affiliates, inspectors, property managers and contractors. There are much more but it’s pretty impossible to name them all. It takes quite a bit of time to develop your team and to make sure they can be relied upon.

I have found that building a team is the most important aspect of investing other than your due diligence on the investment itself.

(5) DUE DILIGENCE – Before invest-ing in any real estate asset your due diligence is crucial. You need to analyze the market you’re investing in, the market timing relative to that market, the specific neighborhood, the market value of the investment, the cash flow it produces, the rental income it should bring in, all of the expenses related to the investment and much more. Inspections should be done as well as a review of all of the backup documentation such as leases and con-tracts. Think like an auditor, review all of the backup information provided by the seller and verify it with an outside source as much as possible. I hear horror stories all the time about how people lost money in real estate. After inquiring as to what happened I can say that 99% of the time the investor did not do or know how to do the right due diligence on the investment in the first place.

(6) PROPERTY MANAGEMENT – Property management can make or break your investment. If you do not have a competent property manager that actu-ally cares about your investment and your success you will have a losing investment. We went through about five different prop-erty management companies before finally starting our own company and bringing the management in-house. Most managers are bad at some of the basic management functions such as accounting, rent collec-tion, tenanting, leasing and background

checks, repair calls and taking care of the tenant. By far the most important and big-gest problem is communication with the owner of the property.

Communication is crucial because with-out communication the investor cannot make decisions regarding the investment and lack control. Property management also needs to be structured based on performance, meaning they get paid if it’s occupied only, not when it’s vacant. Incentives need to be in place to optimize performance.

(7) MARKETING – If you do not know how to market for property, capital, prop-erty sales and resources, you will not be successful in real estate. Marketing and sales is one of the most important parts of any business. During economic problems and recessions most companies cut back on marketing, that’s when it’s most impor-tant to increase your marketing efforts. If there are fewer investors, buyers, and re-sources available because of the economy, there is more competition going after your resources. So in order to attract those re-sources before your competition, you have to market more. Marketing and sales is a business all in itself so getting educated on marketing strategies is imperative to your success. When most people think marketing they think of posting classified ads, send-ing out mailers, coupons, bill boards >

Continued on pg. 55Realty411Guide.com PAGE 46 • 2012 reWEALTHmag.com

Mathew Owens, CPA teaches us the tricks of the trade. Learn tips that helped thisCalifornia investor escape from Corporate America by investing in real estate.

10 Keys for Successful Investments

Mathew Owens, CPA teaches us the tricks of the trade. Learn tips that helped thisCalifornia investor escape from Corporate America by investing in real estate.

10 Keys for Successful Investments

Q: When did you decide to organize Com-munity Buying Group? A: I had the idea about four years ago, but it really didn’t come to fruition until 2010. I am a real estate investor and a landlord and started CBG because I believe we can help a huge number of investors and group organizers do business better, and build a better bottom line by having access to the tools and buying power that the strength of our numbers deserves. Q: Why did you see a need in the market-place for this?A: To help the small to medium real estate investor, property manager or landlord, (small business owner) have access to pro-grams to save them money on material they were buying everyday and gain exposure to new ideas and products and to help them do business more efficiently and to network and share information with other real estate investor and landlords.

Our second objective is to help real estate investor groups and landlord associations grow their membership by providing more

value to their mem-bers. Group organiz-ers are often spread so thin running their own business in ad-dition to running an investment group or meetings that it becomes difficult to grow their groups. Our approach is that if we help everyone

succeed, our success will follow and it has proven to be true.

Q: Are you an investor as well, tell us about your experience in this field?A: I have been a real estate investor for over 10 years, flipping properties in addi-

tional to managing and owning 40 residen-tial rental properties. I really enjoy help-ing other people getting into the business and passing on my experience to save them time and money.

Q: Are you a long-standing member of any real estate groups?A: I have been a member of NARPM and National REIA for years as well as serv-ing on the board of Kansas City Investment Group (KCIG), a member of Mid-America Association of Real Estate Investors and currently on the Eastern Jackson County Landlord Association Board. Q: What are the benefits investors re-ceives for being a member of Community Buying Group?A: The obvious answer is saving money on materials they are purchasing for a real estate project. In addition to saving money on materials and gaining exposure to new products, services and ideas, our members also have the opportunity to get connected to an entire community of real estate inves-tors, landlord, property managers and re-habbers/contractors.

We want every member to feel like there is someone on the other end of that phone that cares and that can help them solve a problem, help them do business better or get them introduced to other like-minded

professionals in their community or across the country.Q: How many clubs are a part of Com-munity Buying Group thus far?A: We have clubs or associations in almost every state and have grown to over 10,000 members over the last 18 months. We have had double-digit growth for the last six months straight. By the end of 2012 we expect to have over 15,000 members. Our long-term goal is to continue to add more suppliers and grow the membership to over 50,000 members in the next 24 months.

Q: Tell us how our readers can receive awesome discounts from the CBG Suppli-ers like Lowe’s, Sherwin-Williams, Sears and other CBG Suppliers?A: They can join a real estate investment

group, landlord association or national trade organization that participates in the CBG Program or they can join as an indi-vidual. We always encourage people to join a local participating group as they will get the benefits of the CBG program and the ability to connect with other like-minded professionals for networking and on-going education. Please contact us to find a group in your area or if you are interested in signing your organization up with a group membership. Our customer service repre-sentatives are available to personally an-swer questions or guide members to maxi-mize their membership benefits by calling 816-282-6310 x 202. A good place to start would be to look at our website: www.communitybuyinggroup.com or to contact me at: [email protected].

Q: What is your vision for the real estate investment industry?My vision is to share as much informa-tion as we can with each other and move the industry forward together. It’s a giant market place and there is so much oppor-tunity from wholesale, retail, rehab, educa-tion, technology and legislation. If industry entrepreneurs, leaders, groups and asso-ciations would work together, it would be amazing what we would accomplish.

— article by Lori Peebles

Two years ago, a seasoned investor named Ben Rao envisioned starting a community to help people

share knowledge and get better pric-ing with major retailers. With that mission as a foundation Community Buying Group (CBG) was born. The organization of nearly 10,000 members now offers individuals the ability to buy like larger companies. Through relationships with their Premier Supplier Network, they offer spe-cial incentives and pricing on products that members use every day. In addition to im-proved customer service and pricing from their Supplier Network, members also gain visibility with other investors who may be able to use their products or services. Their

membership is made up of contractors, property owners, investors, landlords and property management companies. We met Rao during our Mid-West Expo in Kansas City, Missouri, and had the opportunity to interview him about CBG.

Community Buying Group Helps Investors Network, Plus Save Time and Money


Ben Rao


Vol4No.3.indd 49 10/17/2012 5:26:41 PM



Vol4No.3.indd 49 10/17/2012 5:26:41 PM

W

Property Partners1.com SaveMyRetirementToday.com

Property Partners IINVESTORS WANT:3 High Returns3 Hassle Free Guaranteed Expenses 3 Predictable & Reliable Income and Investment Outcome

THIS IS OUR MISSIONWe find, rehab, rent, manage and GUARANTEE the proper es for you in our markets with our in-house staff handling all aspects of the business

Chris Dannenfeldt

If you’re looking for a balanced, appropriate and suitable real estate investment for your porfolio, Chris Dannenfeldt understands how to help you get there.

214-447-7304 (office) 972-693-2140 (cell)214-447-7306 (Asst. Theresa Scalise) 972-692-5448 (fax)

J.C. Dannenfeldt Financial Mgt., LLC/Property Partners 1, LLC: 5015 Addison Circle, #502, Addison, TX 75001

With thousands of transactions under his belt, Chris Dannenfeldt has undertaken many challenging deals, but this by far was one of the most extensive rehab projects of his career. Dannenfeldt represented the buyer in acquir-ing this decrepit multifamily building for the outlandish price of $2,500! Next, he supervised his rehab team to complete a miraculous transformation. Dannenfeldt turned this neglected eyesore into a trophy property worthy of any investor’s portfolio. Dannenfeldt recently discussed the details of this incredible transaction.

1. Research Phase - How you came across your deal?We purchased over 1,000 properties from the city and we bought this particular multifamily building for only $2,500.We finished the vacant project and then sold it to an investor.2. Acquisition Phase - What were the terms of the deal?We purchased all the properties with all cash.3. Rehab/Maintenance - Was the property rehabbed? The property underwent a complete rehab, which included all new plumbing, electrical, new kitchens, baths, sheetrock, lighting, flooring, and windows. Essentially everything was done to the property to make it livable.4. Management - How long was the property held? Was it managed in-house or was the management hired?We are still managing the building for the new owner.

5. Exit Strategy - Please tell us specifics of the exit strat-egy as well as what you learned from this deal? We managed the building for the owner and then sold all of the eight condo units to the tenants for a $23,000 profit on each unit. This is a standard project for us. We buy and rehab the property and then sell to an investor. We also manage for the landlord/owner and then sell to the tenants for a capital gain for the investor. Then, we service the owner financed loans for the investor and then manage the process for the credit rehab and drive the process to get the

new owners (owner financed buyers) able to get a traditional bank mortgage. Seventy percent of our tenants qualify for and exercise their option to purchase. We have had 100% success in getting these buyers qualified for a refinance loan to retrieve our investors their cash outlay back, plus the profit from this sale. Our goal is to have the investor out within a five year period. 6. What returns did the investor make?The client made a guaranteed 10% cash on cash return monthly. He purchased the property for $560,000 and we sold it for him for $760,000, a profit of $200,000. In addition, he made a guaranteed income of $56,000 per year, net after all expenses, also guaranteed during his term of ownership as the landlord.

— article by Lori Peebles

stra

tegy

Analyze the Deal - A Case Study in Strategy{ Chris Dannenfeldt Discusses One of His Most Extensive Rehabs }


Property Partners1.com SaveMyRetirementToday.com

Property Partners IINVESTORS WANT:3 High Returns3 Hassle Free Guaranteed Expenses 3 Predictable & Reliable Income and Investment Outcome

THIS IS OUR MISSIONWe find, rehab, rent, manage and GUARANTEE the proper es for you in our markets with our in-house staff handling all aspects of the business

Chris Dannenfeldt

If you’re looking for a balanced, appropriate and suitable real estate investment for your porfolio, Chris Dannenfeldt understands how to help you get there.

214-447-7304 (office) 972-693-2140 (cell)214-447-7306 (Asst. Theresa Scalise) 972-692-5448 (fax)

J.C. Dannenfeldt Financial Mgt., LLC/Property Partners 1, LLC: 5015 Addison Circle, #502, Addison, TX 75001

n e e d e d t o invest. They were busy years and we were hand-somely and surprisingly r e w a r d e d w h e n w e managed to buy a home with no money down in one of the most high-priced areas of the nation. How? We found a seller willing to carry a portion of the note and we used private money to get into the deal.

Since we didn’t need any of our own funds to buy our home, we used our nest egg to purchase a small apartment building in 1994. It was then that everything began to change. Within a few short years, our net worth skyrocketed. Things were appreciat-ing steadily and the equity in the properties was rising much faster than our ability to earn a paycheck by working in our profes-sions.

This is the beauty of real estate. A prop-erty can appreciate either due to market conditions or by adding value through a re-hab. Profits can come quickly, much faster than a person’s ability to “earn” a living.

The average national salary in America is $41,673.83, according to U.S. Social Security administration. Having a job can provide for the basics just fine, but what quality of life can that type of salary pro-vide for an average family of four?

In the real estate world, $40,000 is not an astronomical number. One can do a deal and make that much per transaction either by buying and holding for cash flow, or buying and flipping for profit. I even per-sonally know someone who made $30,000 on one wholesale deal, and she did not even own title to the property!

One of my favorite deals was when my husband and I purchased a small multifam-ily property in Hawthorne, Calif., a blue-collar area of Los Angeles.

The market was really hot in 2004, and it was tough getting the deal because there were five other offers, but I wrote a personal letter to the seller assuring him that I would make the best landlord to take over his building and he sold it to us, even though another offer came in higher. Upon purchas-ing the property, we did slight renovations,

one unit at a time. Noth ing m a j o r , just new c a r p e t , new paint a n d I think we changed

the cabinets in the kitchen of one unit. The most challenging part was managing the property, which I chose to do myself, but we just had the typical leaky faucet issues.

About one year and half into the deal, we decided to cash out. We purchased it for $425,000 and in 18 months sold it for $659,000. A gross profit of $234,000! How many people can make that amount of money punching a clock for 18 months?

And what do they have to go through to “earn” that money? Get up at the crack of dawn, commute hours to work, put up with bad tempers, bad attitudes, constant dead-lines and job stress.

On the other hand, we created wealth by simply buying, managing, upgrading, then selling an asset. Can it get any easier than that?

This is exactly why I get so excited about sharing the benefits of real estate with people because wealth can be created much faster and easier than by “working” at a given profession.

After being in the work force for 20 plus years now, I’ve come to realize that more wealth can be created by focusing time and energy into finding and buying proper-ties than by climbing the corporate ladder. Buying one property a year, or every few years, can really make a difference in your life and in the legacy you leave behind.

The time has never been better to get started or to expand your portfolio. Never have we had a combination of so many dis-tressed properties to choose from coupled with the low interest rates of long-term financing. The moves you make now can determine your family’s future. So don’t make excuses about how busy you are.

Be sure to take time off from “work” to concentrate on building “wealth”.

Email the publisher at: [email protected] or connect with Linda Pliagas at: www.facebook.com/lindapliagas

older to withdraw gains without penalty nor taxes

Many may not feel it’s worth establish-ing a ROTH because of the low contribu-tion limits of $5k/$6K and/or may not meet the requirements to contribute based on too much income. Keep in mind, you are able to convert from your tax deferred IRA, 401K or retirement plans to a ROTH. There are no income restrictions on a conversion, full or partial and you are the amount you are allowed to convert has no limits. So take advantage of these tax advantages before they become subject to change in the future.

The objective of using a self-directed IRA is to take more control over your investment choices and invest in what you know and understand. The use of this investment tool requires the necessary due diligence to be performed on any invest-ment you choose. Arm yourselves with the required information and education for the investment choices you choose to prevent the potential for losses.

Remember, this is your retirement ac-count we’re talking about here, so become diligent and proactive to protect it.

“Our mission was to create an environ-ment in which our members can build ca-maraderie, share tested investment tech-niques, and promote responsible investing through networking, and referral-based partnerships,” Willois says. The price of admission to their live club held on the last Tuesday of every month is $20, however members can receive a $5 discount if they pre-pay online.

The Lady Landlords of San Diego also educate their members via seminars, work-shops and live presentations. If a buy-and-hold strategy is your game or you’re curi-ous about opportunities in other states, then it’s time to step into the pink domain of the Lady Landlords of San Diego.

CLUB DETAILS:

Lady Landlords of San DiegoWhen: Last Tuesday of every month

Location : Holiday Inn3805 Murphy Canyon Road

San Diego, Calif., 92123

It’s a Lady’s World, pg. 33

Why Should You Consider an IRA? pg. 40 It’s Hard to Make a Living, But It’s Easy to Build Wealth, pg. 9


5 Years of WORRY-FREE Reliable Rentals!

Call Today for a FREE Report on Selecting Reliable Rentals!

513-275-1512 or email:[email protected]

RetireWithRealEstate.Biz

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

– Missy McCall Hammonds, CEO

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


Closing Loans, Opening Doors

- Since 1960 -

We Specialize in• Investment Properties• Up to 10 Financed Properties Allowed• Credit Scores, 620 or higher• Direct Fannie Mae Service/Seller

Contact Stephen Bighuas for Information901.598.9458 • [email protected] Street SW, #121, Lynnwood, WA 98037

Stephen BighuasLoan Officer

Individual NMLS #112825TN MLO #57558WA MLO-11285

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

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

Closing Loans & Opening Doors Since 1960

We specialize in*

Stephen BighausLoan O�cerIndividual MLS #112825TN MLO-57558WA MLO-11285

Please Contact Us for More InformationPh. 901.598.9458 email:[email protected]:3500-188th Street SW,#121,Lynnwood,WA 98037

Ric Jason GosserLoan O�cerIndividual MLS #120413TN MLO-57820WA MLO-120413

3 Investment Properties3 Up to 10 Financed Properties Allowed3 Credit Scores, 620 or higher3 Direct Fannie Mae Service/Seller

With Great Service & FAST APPROVALS:We’ll take care of you!!

True Wealth is Created by Holding Property Long Term

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

BuyHoldRent.com

We o�er completely re-habbed 1 and 2 family homes in Northeast Ohio.

Home range from $50,000 - $75,000 bringing in rent from $700 - $1,100

Enjoy a HUGE return on your investment

We manage properties

We have 20 years experience

3Refer a Buyer and Make $2,000!

LLoSanDiegoContact us today @ [email protected] via phone:(760) 896-4808

San Diego’s Premiere Real Estate Investment Club

Join today and receive

What investors are saying about LLoSD!

LLoSanDiego

Contact us today at [email protected] or via phone (760) 896-4808

JOIN TODAY & RECEIVE:•10% off Annual Membership •An Out-of-State Investor Survival Kit

San Diego’s Premiere Real Estate Investment Club

What investors are saying about LLoSD!• “Just loved the people I met and the overall atmosphere of the group!”• “Smart, professional yet unpretentious people. Five stars!!!”• “Wonderful idea. Long over due.”

Lady Landlords of San DiegoWe offer a full spectrum of real estate services to include:Brokerage- Kansas & Missouri Real Estate BrokerProperty Management-Single and Multi Family Field Inspections-FNMA, REOLeasing-Single and Multi Family Renovation-Single and Multi FamilyConsulting- New to the business...we can helpCommercial Real Estate Financing-Nationwide

Serving the entire Kansas City Metro area for over 25 years.

Real Estate Property Management and Rehab Services Available

Currently Managing Properties for Many Out of State and Foreign Investors, including Subscribers of this Magazine!

Investors nationwide turn to ICR Real Estate Services for their commercial and residential investment needs.

RACE FOR SPACE

We offer a full spectrum of real estate services to include:Brokerage- Kansas & Missouri Real Estate BrokerProperty Management-Single and Multi Family Field Inspections-FNMA, REOLeasing-Single and Multi Family Renovation-Single and Multi FamilyConsulting- New to the business...we can helpCommercial Real Estate Financing-Nationwide

Serving the entire Kansas City Metro area for over 25 years.

Real Estate Property Management and Rehab Services Available

Currently Managing Properties for Many Out of State and Foreign Investors, including Subscribers of this Magazine!

Investors nationwide turn to ICR Real Estate Services for their commercial and residential investment needs.

RACE FOR SPACE

COMMERCIAL REAL ESTATE

Investors nationwide turn to

ICR Real Estate Services for their Commercial and

Residential Investment Needs

Property Management & Renovation Services

of Single and Multifamily Properties

Brokerage is Licensed in Kansas & Missouri

Serving the Kansas City Metro for over 25 years

•Managing Properties for Many Out of State &

Foreign Investors, including Magazine Readers

Larry Myer, ABR, SFR, CDPE816.561.07441715 1/2 W 39th Street, Suite 206Kansas City, Mo 64111


more but the most important and under utilized marketing strategy is internet marketing. Internet marketing is revolu-tionizing the way most com-panies advertise. If you do not understand it or start to learn about internet marketing, you will not gain the market share you deserve and will not be as successful — 85% of buyers go online first for investment information. It is an online world whether you know about it or not.

(8) TREAT YOUR INVEST-MENTS AS A BUSINESS – Most investors buy one real estate investment and do not fully utilize all of its capabilities from a business perspective. If you own one property or 50 plus properties you should be treating it as a business. Be sure to keep track of ALL of your expenses re-lated to the investment, the due diligence you did, travel costs you incurred, etc., so that you can get a deduction for those items against income from other sources. These types of expenses can happen annu-ally and a percentage of your personal expenses can be used as a tax loophole in order to de-duct more against your active income from your job. Your biggest expense in life is your taxes. It is the government’s job to find more creative ways to tax us. It is our job to find creative ways to legally not pay taxes. If you are not winning against the government, start to educate yourself on key tax saving strategies.

(9) LEGAL PROTECTION AND TAX STRUCTURING – It is crucial to protect your-self from financial predators. There are people out there that will sue anyone they possibly can. It’s really important to

obtain additional umbrella in-surance or put your assets into a proper entity so that you are not liable in frivolous lawsuits. Generally for tax purposes you want to keep passive invest-ments (investments like rental real estate that produce income you do not work for) in an LLC and active investments (investments you actively work for) in an S-Corporation or similar entity. Please consult your individual tax ad-visor to go over your specific situation as it is impossible for this advice to relate to every situation. Also be sure to keep yourself separate financially from the investment or entity you hold the investments in so that you do not pierce the cor-porate veil. If you commingle your funds there is a very real possibility that in court your legal entity protection that you worked so hard to setup is worthless.

(10) INVESTING IN SUS-TAINABLE INVESTMENT TYPES – Invest in asset types and real estate invest-ments that are sustainable in the long run. Look closely at the cash flow included in the investment. If it’s negative, unless you are flipping, do not invest. Flipping can be much more dangerous than invest-ing for cash flow because you typically have a payment on a flip investment that is not covered fully by the rental income. If you get stuck with the property, you find yourself in a negative cash flow situa-tion and you can only sustain it as long as you have money in the bank to make that payment. Many people lose a lot of mon-ey trying to flip property, not knowing fully what they are doing and the risk they are tak-

Belize is an undiscovered paradise and as investors we know how important it is to be the first one to tap into a great deal. New-ton wants to share what he’s discovered. “Just south of San Pedro on Ambergris Caye, there is a scenic and affordable 400 plus lot development project . The development is the largest and first full gated community in all of Belize and easily accessible from the air-port in San Pedro. Each lot is fully developed and ready for construc-tion. Each one comes with its own private dock, water access to the Caribbean Sea and parking spots for golf carts.”

It sounds heavenly but does it make finan-cial sense? Newton, who is an oral and max-illofacial surgeon, thinks so. “There is no debt on the developed land and if the properties are placed in the rental pool, the projected returns are 10% plus.”

Currently each unit starts at $100,000. Why is the price so afford-able? Because investors are getting in at the ground floor level. “I relate Ambergris Caye to what Hawaii was before it got ‘discov-ered’ by the world,” Newton says. “Why not be ahead of the crowd and combine real estate investing with a lifestyle that incorporates spending time in a world-class resort destination?”

Newton believes so much in the project that he is now involved with the Belize Commerce Alliance to promote Discovery Trips to Belize. In the past few years, Newton has created a passive income stream and now he is ready to combine investing with pleasure, which leads to an even more rewarding ROI.

— article by Lori PeeblesFor information about Belize and the opportunities in Ambergris Caye, please contact Dr. Michael Newton via email at:[email protected] or at 805-405-3183.

Belize Facts* Only English-speaking country in Latin America* U.S. Dollars are readily accepted* Closer than Hawaii from most U.S. cities* Fee simple title, real estate ownership is exactly like in the US and based on British common law* Belize has strong privacy bank ing and asset protection laws* Rental income is taxed at 1.75% and there are NO capital gains tax* Small and stable government* Undiscovered paradise with vast growth potential - a perfect combination for appreciation

10 Keys for Successful Investments, pg. 46 Mixing Business with Pleasure, pg. 42

Crisis, Recovery, and ProsperityTotal Solutions Alliance is a net-work of professionals that pride themselves on unparalleled ser-vice and performance. We are committed to providing unbiased advice and prudent strategies to help you create and build wealth.

www.TotalSolutionsAlliance.com

Call Us Today:Pilar Tobias209-227-8129

Continued on pg. 61


One of the most exciting things about being a real estate investor is know-ing what markets will produce the greatest long-

term returns — especially while in the middle of a challenging housing market.

In a down market, savvy real estate investors are eager to find out how they can best leverage their resources. And expert forecasts are some of the best tools they can use to back up their strategies. A good example comes from

real estate consulting firm John Burns Real Estate (JBRE), which has recently predicted that homeownership will fall from 70.0 percent to 62.1 percent by 2015 due to a weak economy, weak consumer confidence, limited mortgage availability, higher rates of foreclosures, and short sales, and other factors.

The JBRE forecast, although based on broad market conditions, points out that we are going to see an increasing number of renters and therefore a greater demand and need for rental housing.

Savvy real estate investors choose investment properties that are located in markets with the greatest long-term growth potential. This allows them to invest wisely today while hedging their bets on the future growth and apprecia-tion of their chosen markets.

Our 2012 Housing Market Forecast lists the Top 100 Metropolitan Mar-kets based on future job growth and projected price appreciation. If you are interested in finding growth markets with strong appreciation potential, then the McAllen-Edinburgh-Mission, Texas metropolitan area may be your first choice. We project its 10-year future job growth to surge by 32.3 percent and

home values to appreciate by 37.9 percent in five years. In addition, property values remain relatively affordable with the me-dian sales price around $100,000.

Aside from this Texas residential investment area, our report reveals other real estate markets with great potential including two from Colorado (Colorado Springs and Denver-Aurora), as well as California (Sacramento-Arden-Arcade-Roseville, and Oxnard-Thousand Oaks-Ventura). Other markets that made the Top 10 include North Port-Bradenton-

Sarasota, FL; Las-Vegas-Paradise, NV; Hartford, CT; Springfield, MA; and Phoenix-Mesa-Glendale, AZ. These areas have a five-year appreciation forecast well above 21 percent.

And what does this mean for real estate investors? There’s a gold mine out there waiting for you to take full advantage of it! A fall in homeownership means a rise in rental units to accommodate the surge in demand from those who have recently lost their homes to foreclosure, those who cannot afford to buy property, and those who are still saving up for a new home. Last October 2011, the National Associa-tion of Realtors (NAR) reported that the number of rental homes had gone up to 38 million units in 2Q11 and the vacancy rate of single-family homes and multifam-ily units was at an all-time low rate of 9.2 percent.

Investors never think twice about snap-ping up bargain properties with positive cash flow. As NAR chief economist, Lawrence Yun, puts it, “The dynamics of falling rental vacancy rates mean in-creased landlord pricing power. Naturally as a result rents have been pushed higher...Rising rents mean a better rate of return for real estate investors.”

Cash flow investment properties are indeed your best hedge against the neg-ative impacts of a down market. Take it from Morgan Stanley’s “Housing 2.0 The New Rental Paradigm” report. The financial services company observes that gross rents are “historically attrac-tive relative to current distressed prices. Adding to this attractiveness is the fact that multifamily data shows rents continuing to rise.” More so, it favors single-family homes as the most ideal form of real estate investment in the

market today owing to their huge rental potential. JBRE’s forecast also reveals that homeownership will not be on an upswing until 2025 at 67.1 percent on the back of foreclosed homes return-ing to ownership, improved economic conditions and normal mortgage credit, and an increase in the propensity of households to own a home. That may signal the time to consider selling your portfolio and taking a profit, or trading up into more real estate using the IRS 1031 tax deferred exchange.

There are plenty of investment op-portunities out there today. Be sure to take action, do your homework and invest wisely. As JBRE puts it, “The American dream of homeownership is still alive and well...”

Marco Santarelli is an investor, author, and the founder of Norada Real Estate Investments – a national real estate investment firm providing investors with turnkey investment property in growth markets nationwide, visit online: NoradaReal-Estate.com for a FREE membership.

by Marco Santarelli


by Marco Santarelli

WWW.NORADAREALESTATE.COM

CALL US AT (800) 611-3060

Download a free copy of ourvaluable 15-page special report,“Building Wealth in Real Estate”and receive a free membership toour nationwide investor network!

FREE REPORT

Norada Real Estate Investments helps take the guessworkout of real estate investing. By researching top real estategrowth markets and structuring complete turnkey real estateinvestments, we help you succeed by minimizing risk andmaximizing profitability.

Successful Real Estate Investing Beginswith the Right Investment Property!

RENT

WEALTH CREATION MADE EASY

In today’s DIY and finance crippled real estate world, Jeff Ader and his team at

InvestIndy are a rarity. They know long-distance investors need that extra special service to be successful. Property management and seller financ-ing are the two key elements that set InvestIndy.com apart. Their track record for real estate success speaks volumes: “We’ve been doing this for 36 years even before it was being advertised as the thing to do, and I believe we do it better than anyone else.”

Ader operates InvestIndy differ-ently than most conventional investment brokerages. For one thing, clients of InvestIndy don’t have to worry about whether they can qualify for a bank loan.

“Our company provides the loan for the buyer to acquire the property without them having to qualify with a bank. This lessens the need for the buyer to have spotless credit,” Ader explains.

Investors can expand their portfolio with as little as a cash outlay of $13,000. The buyer takes over an existing turn-key rental with a stable tenant already in place. Ader provides the perfect option for people with spotty credit or those who cannot qualify or any more loans. Time is also of the essence, he can close the deal in a week, whereas a conventional lender can take months.

“I own every house that I sell. I’ve owned some of them for one year and others for ten years; which means the in-vestor receiving them will get substantial equity in that investment,” Ader says.

The biggest advantage of seller financ-ing to the buyer is credit worthiness. Banks don’t want to talk to you if your credit score doesn’t exist at a certain level. But a seller with the available resources, like Ader, is often willing to make a deal. This process has another advantage for the potential buyer in that you can often get a lower monthly down payment. Jeff’s deals are amortized for 30 years. “The reason that works so well for the client is that it creates a very low

payment. Sometimes as low as $200 a month, which allows for a great return on investment.”

Many stock-weary investors are now taking advantage of self-direction by purchasing real estate with their 401(K) or IRA (Individual Retirement Ac-count). Ader says that instead

of getting a paltry one to two percent return from certificates of deposit — or taking huge risks with the volatility of the stock market.

Ader and his team are equally known in real estate circles for their property man-agement. Since they have been in business serving local and out of state investors for more than 35 years, Ader and his wife, Miriam, have learned a thing or two. “Our style of property management is based on being a very good mediator in terms

of communication levels between us and tenants. This sends a message to the tenant that lets them know we’re listening to what they have to say, which makes them want to stay longer.”

Since Ader and his family own a sub-stantial real estate portfolio themselves, they know tenant turnover is one of the biggest expenses in landlording. “It can cost up to $1,500 to get the property rent-ready after a tenant moves out. If the tenant feels they’re being treated fairly, they’re much more likely to stick around.”

But it’s not only the tenant that’s the focus of the Dorfman property manage-ment style, it’s the owner-investor as well. Jeff says, “We foster great communication with the owner of the property, 50 percent of whom are out-of-state. Investors get their reports on time, as we’re their eyes and ears on the ground. We do virtually everything for the owners so that it’s a hassle-free operation for them.”

SAMPLE DEALPrice $45,000Downpayment: $13,500No Closing Costs!Annual Gross Income: $8340$695 x 12Annual PITI: $2,774Annual Taxes: $1,028Annual Insurance: $650Annual Management: $834Vacancy Factor: $667Maintenance Reserve: $584Annual Net Income: $1,803Cash on Cash Return* 13.36%

2029 Goodlet AveIndianapolis, IN

30% Down Owner Financed PurchasePurchase Price: $45,00070% Loan Amount: $31,50030% Down Payment: $13,500

Purchase Price: $45,000 Closing Costs: $030% Down Pymnt: $13,500 Total Investment: $13,500*Loan Amount: $31,500 *Annual Gross Income: $8,340 *8% Interest 30 Year term *current rent 695/mo X 12 10 Year balloon payment Annual Principal & Interest: ($2,774)

Annual Taxes: ($1,028)Annual Insurance Estimate ($650)

3 Bedroom 1 Bathroom Annual Management Fee: ($834)825 Square Feet Vacancy: ($667)

Maintenance: ($584)Annual Net Income: $1,803Cash on Cash Return* 13.36% *All figures are projections only and are not guaranteed.

such a great experience, I now own a $1.2 million ocean-front luxury condo in Cabo San Lu-cas, Mexico, and a three bed-room home with a pool in Palm Desert, plus my Hollywood Hills baby, www.Presidential Residence.com.

These three vacation prop-erties offer great benefi ts:1. Cash Flow 2. Tax Benefi ts3. Networking Opportunities4. I trade my properties with other vacation homeowners 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 apprecia-tion.6. Meet affl u-ent people.7. Own a busi-ness that re-q u i r e s l i t t l e

time and management.8. Build a business that I can sell in the future.9. Have FUN!

Remember there are three necessities in life.

#1. Food. #2. Water. #3. Shelter (i.e. Real Es-

tate). People will always need a place to live, play and work (a.k.a Real Estate). This is why real estate has always been the Number One Investment. But you do need to know how to buy right and invest wisely.

Hector Padilla is president of HP Capital Investments, Inc.,

a real estate acquisi-tion fi rm, and principal broker of SWI Realty, a boutique realty company. For information, please call (310) 204-8971 or email him at: [email protected]

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

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

Invest in Indianapolis!More Cash Flow • Less Headaches

Seller-Financing Available!InvestIndy.com827 North Capitol

Indianapolis, IN 46204InvestIndy.com | 317.507.4323

35 Years in Business!Our Services Include:•Tenant Screening•Tenant Placement Rehabs•Regular/Emergency Maintenance•Monthly Statements•Online & Yard Sign / Rental Advertising•Outside Network of Legal, Property •Tax and Debt Collection Services

Rent Your Property FAST, HIRE the Dorfman Team

ph: 317.634-5955 or visit www.GoDorfman.com

Rent your property FASTHIRE Dorfman Property Management

Our Available Services:

Q: Tell us a bit about Dorfman Property Management, how did the company come about?Jeff Ader: Dorfman Property Manage-ment was founded 35 years ago by Martin Dorfman and his daughter Miriam Ader to manage family owned properties as well as provide fee based property management ser-vices for Indianap-olis investors.

Q: From an inves-tor and managers point of view, what are some common mistakes that in-vestors make?Ader: Overpaying for a property and not doing research about rental amounts. Other

common mistakes are purchasing in a high crime or undesirable neighborhood and not doing a thorough rehab.

Q: Do you have many clients from out of state and other countries?

A d e r : Ye s , w e service many cli-ents from Cali-fornia as well as Arizona, Florida, Hawaii, Illinois, New York, Ohio, Georgia and many more. In addition, we have clients in Italy, Austra-lia, France and Japan.

Q: Why do you think people should have rental properties in their portfolio?

Ader: First of all, it’s always important to diversify your investment portfolio. Hav-ing different asset classifications, such as real estate, stocks, bonds and precious met-als, helps reduce risk in your overall invest-ment portfolio.

Secondly, people can build wealth and accumulate a high net worth by buying and holding rental properties over a period of time. Here is a simple example of why rental properties can be such a powerful wealth generating investment:

Exhibit A: $20,000 lump sum @ 5% inter-est at the end of ten years equals $32,578

Exhibit B: $20,000 cash outlay on a $100,000 rental property, which leaves $80,000 financed with 5% appreciation per year at the end of ten years equals $82,889

Outstanding property management is essential for success and with over 35 years experience, Dorfman Property Management is the industry leader in Indianapolis. The family-run company has owned investment properties since 1960. Jeff Ader, a Dorfman executive, tells us why the company is so special.

Dorfman Delivers Success

Continued on pg. 16

Family-Owned Business, Over 1,000 Properties Under Management

INSIDE INDY: The metro area of India-napolis. was just ranked #1 nationally in housing affordability by the prestigious Wells Fargo Housing Opportunity Index. Plus, the unemployment rate is lower in Indianapolis than the national average.


Call Us for Our LatestDEALS!!!

Jeff Ader

After Ryan Tebbenkamp completed his degree in real estate appraisal from the University of Kansas, he

began to work in the industry helping set com-parables for his communi ty. I t was during this time he observed the benefits of buying rentals for passive income. Since 2001, Tabbenkamp has been not only pricing properties, but also provid-ing outstanding rock-bottom priced deals to investors in Missouri as well as out of state. We spoke with Tabbenkamp recently to get the scoop on the market in this Mid-Western city.

Q: What type of opportunities are you seeing in Kansas City right now? A: Right now, we are seeing fantastic op-portunities with great cash flows in the

Kansas City and sur-rounding areas. We’re able to pick up homes for incredible prices. Q: What is the best part of being an in-vestor in your area? A: Our market is steady. Real estate here doesn’t fluctuate upward and downward like other areas of the United States. Q: Currently, how is the rental market?A: It is really good right now. The typical vacancy rate is low and stands around 5%.Q: When did you start your real estate investment career and how? A: In 1996, I received my degree in real es-tate and real estate appraisal, I saw the op-portunities in the rental market and started buying properties to hold for cash flow. Q: What makes IBuyKCHomes.com unique in the Kansas City marketplace? We focus on aggressively marketing vacan-cies and proper screening to procure good quality tenants in the rental homes, which results in less turnover.Q: Tell us why investors should take a look at Kansas City real estate? A: The cash flow for properties in good ar-

eas are incredible. We truly have one of the best rental markets in the country in terms of Return on Invest-ment (ROI). It’s an area investors from around the world are buying in. Q: How do you handle

property management? A: My company has had a relationship for a long time with a great property manager. They handle everything for me and our clients. Their service is wonderful and it makes our life as investors stress-free.Q: Is there anything else you’d like to add? Can you leave our readers with some advice that can help them?A: The best thing I can emphasize is for investors to be patient. Sometimes as inves-tors we may hit bumps in the real estate rental market, but we have to remember that in the long run, it will work out. Our rewards in this business are long-term, so let the ten-ants pay off your debt, as the house appre-ciates over time.

Market Spotlight: Kansas City, MOLOCATION:Kansas City, MOCOMPANY:Home SolutionsCONTACT:Ryan Tebbenkampph: 816.682.3998web: IBuyKCHouses.com

Most of Bob Hope’s fortune, estimated at $500 million when he died in 2003, came from real estate holdings and sales rather than acting revenues.

Within 24 hours of listing the units with Coldwell Banker, Drake’s properties had netted him a half a million dollars.

INSIDE INDY: The metro area of India-napolis. was just ranked #1 nationally in housing affordability by the prestigious Wells Fargo Housing Opportunity Index. Plus, the unemployment rate is lower in Indianapolis than the national average. Celebrity Real Estate Moguls, pg. 18

Continued on pg. 60


Realtor Jim Nyquist, who specializes in helping celebrities and non-celebrities make money flipping houses, says the rap-

per’s public statements along with a buy-er-friendly real estate market is increasing interest in this arena of investing.

“It is nice to have a celebrity offer backing to the process of house-flipping,” Nyquist says. “Because while some Americans still think of it as decidedly unglamorous work, the truth is that many

adventurous investors make a ton of money doing this.”

Van Winkle said in a CNBC interview that he started flipping houses in the Palm Beach, Florida in 1997. His success even in a time of serious economic challenge garnered him a reality show called “The Vanilla Ice Project.”

“The short sales, the foreclosures are great, but tax auctions are even better,” Van

Photos, left to right: Celebrity icon Bob Hope courtesy of USPS; actress/singer

Cher and hip hop mogul/actor Drake.

how to set up your own Land Trusts? Yes. Is it expensive? No. Is it easy to learn? Yes. And, to prove it, I will send you my book-let, “50 Reasons To Use A Land Trust” for FREE. Just send me an email at: [email protected]

On October 27th,2012 I will be teaching my nationally acclaimed Land Trusts Made Simple Seminar in Culver City, CA. As a bonus day, Dawn Rickabaugh, The Note Queen, will offer her one day Pumping Paper For Profits seminar October 28th, 2012.

Dawn and I will teach at both seminars and show you how to combine Land Trusts and real estate notes for dy-no-mite Privacy, Asset Protection and Profits!

Don’t miss this one-of-a-kind two day event. You can register for one day or both days at: www.realestateforprofit.comor call 866-696-7347.

Join our magazine’sFacebook Group and Mingle with Investors!

[email protected]


Celebrity Real Estate Moguls, pg. 59 Do YOU Need a Land Trust?, pg. 39

The problem is that most practitioners do not know how to set up and administer Land Trusts so many of them consequently advise people not to use them. You may have been told by someone (an attorney, accountant or friend) that you need a Land Trust, but nobody told you how or where to find information to help you get started. The point here is do not trust someone who does not have direct active knowledge of Land Trusts and their benefits.

I have been using Land Trusts in my full time real estate investment business for over 30 years. I have found that many times advisors tell their clients, “You cannot do that” with a Land Trust. Most of the time they are wrong!

You may have heard about the little known technique of using a Land Trust for privacy and profit in this unique real estate market. But, do you really need to learn

Learn from THE National Expert on how to use Land Trusts

for privacy & asset protection.

Visit Randy's website for FREE Land Trust information or call him now @ 866-696-7347 with your questions.

Attend his next Land Trust and Note Queen Seminars on

Oct. 27th-28th in Culver City.

Register at the website below:

Randy Hughes Mr. Land Trust

40 Years Experience

RealEstateforProfit.com

Join Our VIP Social NetworkFREE Membership * LIVE Chat

Realty411Guide.ning.com

Post Your Blog, Events & Deals

Winkle says. “I just bought the Sea-son Three house on a tax auction. If no one’s bidding against you and it’s an absolute auction, you can steal the homes for pennies on the dollar.”

Cher, one of the biggest celebrities in the world, sometimes has appeared as the queen of re-inventing herself. With the help of architect Steve DeChristopher Jr., the actress-singer tried her hand at renovating a Palm Springs house that she bought for $650,000. She then sold it for $2.5 million.

Rapper Audrey “Drake” Graham took a risk and spent about $1.9 million of his $11 million fortune on two side-by-side condos in Miami. Within 24 hours of listing the units with Coldwell Banker, Drake’s properties had netted him a $500,000 profit.

While it’s not necessary to already have access to millions of dollars to become successful in the art and science of flipping houses, true hor-ror stories are well-publicized on “Flip This House” and created into fictional plots on prime time cartoons such as “Family Guy.” It is all too easy for an inexperienced investor to get seduced by the potential profit and not realize that the home was never really a good investment to begin with.

“For anyone interested in flipping a house and avoiding the horrors, the important thing is to do some research up front,” Nyquist says and adds: “Paying for a good home inspection is a sound investment, and will help ensure that the property in question really can be flipped for a handsome profit.”

The Choice Is YoursDo You Want the Pain of

Paying More Taxes?Or, We Can Do

Advanced Tax Planning for You

Call now at 805-898-3177 • www.abwtax.com

ABW Tax & Consulting, Inc

Glenn R. Wilson, EA, ATP, ATA, ABA

dence within the fear that stops us. When the false evidence is revealed for what it is... “false,” tak-ing action becomes much easier. I use this exercise regularly in my investing workshops to get people over the fear of submitting purchase offers for real estate, but it will work for any fear. To demonstrate how it works, I’ll lead you through the exact exer-cise I do with my students. Go to www.FalseEvi-denceTest.com for a short video demonstration of this easy exercise. The sooner you do this, the sooner your fears will disappear so you can start making that big money.

And Here’s How to Do It, pg. 33

SOLUTIONSHOME

Solid Investment-Great Returns

Ryan TebbenkampBus: 816 682 3998

Email: [email protected] City, Missouri

HOME SOLUTIONS

CASH FLOW PROPERTIES!!!Most Homes Have Been Remodeled

In The Past Few Years.12-18% Return a er taxes and insuranceManagement Company Expenses 6-8%

KANSAS CITY TURN KEY RENTAL PROPERTIES!!!! Buyers Agents paid 7%

One Year Home Warranty

11513 Delmar, Kansas City, MO 64134

Updated Nice Ranch, 1 Car Garage/ Full Basement, 3BR/1BA

924 SF$750 Rent

PRICE: $49,000Recently vacated

Seller Wants Offer!

10205 Bellaire, Kansas City, MO

Fresh carpet and paint, Fenced yard, Fin. basement, 3BR/1BA, Garage

925 SF plus Fin. Bsmt$ 775 Rent

(Tax: 1,026, Ins. $284)Price: $51,000

PACKAGES OF PROPERTIES ARE AVAILABLE!ing only to lose a significant amount of money. On the other side when you are investing for cash flow only invest in quality assets. Typically if you invest in low end assets in your market you get low end tenants also. Instead, you need to invest in quality long-term assets that are going to produce positive monthly cash flow and make you a great return on investment based on conservative numbers.

I truly believe if you do these things, along with increasing your financial IQ, you will be success-ful if you work hard for it. Most of the wealthy individuals in the world work hard for their money and are constantly evaluating their financial situation and investment goals. Putting a personal budget to-gether and reviewing it monthly, creating additional income sources, implementing tax savings strategies, protecting your money from financial predators, and constantly educating yourself are the keys to becom-ing wealthy.

For more information about Mathew Owens, CPA, please visit his website: www.ocgproperties.com

10 Keys for Successful Investing, pg. 55

Should one buy a property to hold or just flip?

The answer is complicated because it depends on many

factors, including finances, risk tolerance and individual

goals. To help readers understand both strategies, we asked

Terica Kindred to share some insight on the differences

between the two. Kindred’s company, Out Estate Investments (www.OutEstate.com,

ph: 323.829.0778) is a full-service real estate investment firm headquartered in Atlanta and

Los Angeles. Kindred offers everything from no-money down opportunities to more tradi-

tional real estate investments. Here is a sample of the two strategies with her program.

Save 20% off your first year of CBG Membership – use Promo Code CBG411

Call 816-282-6310 ext. 202 or visitCommunityBuyingGroup

for just $99 annually*

With CBG, your members save money at these national suppliers plus MANY more:

We help RE Investment & Landlord Associations offer their members MORE VALUE

Individual Investors are also welcome!

C

M

Y

CM

MY

CY

CMY

K

Specializing in Zero Money, Hands-Free Real Estate Investment Opportunities

AtlantaInvest in

Terica Kindred has real estate in her blood. She grew up in a family where her father, aunts and uncles, even great grandmother, all plied their trade in real estate. Pursuing her first investment opportunity at the age of 19, and she never looked back. Her company, Out Estate Investments (h p://www.OutEstate.

“Fix and Flip” versus “Buy and Hold”by Isaac Newkirk III

Buy and Hold (No Money Down)This is the more traditional real estate investment vehicle where property is acquired and held for a period of time (usually a number of years) and sold after it appreciates in value. This model favors the passive investor, one who is willing to buy and do very little other than allowing the property to appreci-ate in value.

Fix and Flip (20K Down)This model requires the investor to acquire the property at below market val-ue, refurbish the property by making strategic repairs, and selling the property

realized in a matter of months.

com/) is a full service real estate investment firm (headquartered in Atlan-ta, GA, and Los Angeles, Calif.) offering everything from no money down opportuni es to more tradi onal investments.

www.OutEstate.com 323.829.0778


Fix and Flip ($20K Down) This model requires the investor to acquire the prop-

erty at a below market value, refurbish the property by making strategic repairs, and then selling it. This

model offers the quicker route to profits. The goal is to make money within a short time.

Buy and Hold (No Money Down)This is the more traditional investment vehicle where property is acquired and held for a period of time (usu-ally a number of years). This model favors the passive investor, one who is willing to buy and do very little other than maintain and allow it to appreciate in value.

“Fix and Flip” versus “Buy and Hold”


Tips from Terica

w w w . o u t e s t a t e . c o m3 2 3 . 8 2 9 . 0 7 7 8

Specializing In Buy & Hold and Fix & Flip Investment Opportunities

www.investorsedgeuniversity.com

+ DO YOU WANT TO BECOME A MILLIONAIRE REAL ESTATE INVESTOR?

+ DO YOU WANT A BIGGER, PAID-FOR HOUSE?+ DO YOU DREAM OF A BETTER LIFE?+ ARE YOU TIRED OF BEING LET DOWN BY SO-CALLED

REAL ESTATE GURU’S?+ CAN ONE DOLLAR REALLY CHANGE YOUR LIFE?Bill and Dwan Twyford are the Nation’s most sought a�er real estate in-vesting experts. �ey have personally bought and sold over 2,000 proper-ties, bought millions of dollars in commercial property, coached 1,000’s of students through successful real estate deals, and have been making millionaires all over North America for almost twenty years now.�ey have been blessed enough to write TWO best sellers – One teaches you many di�erent options on how to cash-in during this economic crisis and to become a superstar real estate investor. �e other book helps upside down homeowners out of their situation and also teaches distressed homeowners how to �nd YOU – the ethical investor. Owning both of these books is the perfect marriage.

�eir goal is to teach you how to build an ethical, fair, and PROFITABLE business that WILL make you a millionaire!�ey have an incredible opportunity for you to work with them for just $1 to see if you are a good �t for each other!

That’s right…You Can Join Their Legion of ExtraordinaryReal Estate Entrepreneurs for Just $1.00

LOOK AT WHAT WE WANT TO GIVE YOU FOR JUST ONE DOLLAR:+ Our highly coveted “Top 7 Real Estate Inves ng Strategies

for Today’s NEW Market” home study program.+ A ONE Hour “Profitable Real Estate Inves ng - Fast Track” DVD that will teach you how to Find, Flip, and Short Sale proper es anywhere in America.

+ FREE Report on “The Top 10 Short Sale Mistakes and How to Avoid Them”

+ FREE Land Trust – The Exact One We Close ALL Of Our Deals With. Perfect for today’s short sales! We have several clauses that are copywri en just for Investors Edge Universitystudents for your added protec on!!

+ Trial of Our New “Gold Members” Membership Site - (Wait ‘ l you see what we have added: coaching, documents library, investor tools, foreclosure news, a forum, and much more!)

That’s a $3,207 actual value for JUST $1.00!

Go to www.InvestorsEdgeUniversity.com/realestateprofits to try us out.FREE BONUS: Take advantage of the $1 trial and get TWO hours of FREE coaching with

Bill and Dwan LIVE! No Joke…LIVE Coaching with the guru’s themselves!

WHITE ROCKCapital Inc. WE DO THE WORK

YOU CHOOSE THE OPPORTUNITY

CALL NOW!877-228-6060whiterockcapitalinc.com

NOW INCA & AZ

realty411 magazine - a free guide for real estate investors

Documents