selling houses fast in a market slowdown · page 2 the wealth builders journal march 2008 june 2003...

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$7.95 Single Issue The Professional Journal of the Real Estate Investors Association of Northern Ohio Plus Volume 10, Issue 3 March 2008 Do you want to learn every Marketing Secret and Auto Pilot Technique that Bob Campana has learned and used in 17 years to make certain you NEVER have to worry about .... Selling Houses Fast In A Market Slowdown Who are YOU listening to … Are all the negative articles online and in the papers convincing you that selling is harder in the slowing market? Are the talking heads on T.V. fueling the fire with their opinions about a subject they absolutely know nothing about? (Continued on page 2) Well, on Wednesday, March 19, 2008, you will have two opportunities to hear first hand from Bob Campana just how simple the selling process can be. REIANO Plus will have a special afternoon session from 3:00 PM to 4:30 PM. Then after a short 30 minute break, REIANO Plus will host an extended networking session from 5:00 PM to 6:30 PM where members and guests can breakdown into subgroups to discuss various investment topics of inter- est, including but not limited to, rehabbing, lease option, subject to, wholesaling, buy and hold strategies, CASHFLOW 101 – the game, etc. Following the networking session, REIANO Plus’ regular evening session will start 30 minutes early and run from 6:30 PM to 8:30 PM. This new format will provide, you with the time flexibility to hear Bob Campana plus provided you the opportunity to net- work for a much longer period of time. REIANO Plus has convinced BOB CAMPANA to give YOU NOT 1 BUT 2 opportunities to show you How to Sell Houses FAST in a Market Slowdown at our early session from 3:00 PM 4:30 PM or at the evening session from 6:30 pm – 8:30 pm on Wednesday, March 19th, 2008 at the Holiday Inn – Independence at I-77 and Rockside Road. Reg- istration begins at 6:30 PM and the Guest Fee is $20 payable at the door for non-members. Members are always FREE! Wednesday, March 19th Meeting HOLIDAY INN – INDEPENDENCE I-77 & Rockside Road, Independence, Ohio Agenda: 2:30 PM doors open for registration 3:00 PM – 4:30 PM – Featured Speaker 4:30 PM – 5:00 PM – Dinner Break 5:00 PM – 6:30 PM – Networking Session 5:00 PM – 6:30 PM – evening registration 6:30 PM – Featured Speaker 7:45 PM – Break 8:00 PM – Q & A 8:30 PM - Adjourn $20.00 Guest Fee for Non-Members.* *Credited toward membership if joined within 30 days. N EXT M EETING !

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Page 1: Selling Houses Fast In A Market Slowdown · Page 2 The Wealth Builders Journal March 2008 June 2003 MONEY TIME is NOW … The truth is that the REAL MONEY is made when the real estate

Page 1 Volume 4, Issue 6 The Wealth Builders Journal Page 1 Volume 10, Issue 3 The Wealth Builders Journal

$7.95 Single Issue

The Professional Journal of the Real Estate Investors Association of Northern Ohio Plus

Volume 10, Issue 3 March 2008

Do you want to learn every Marketing Secret and Auto Pilot Technique that

Bob Campana has learned and used in 17 years to make certain you NEVER

have to worry about ....

Selling Houses Fast In A Market Slowdown

Who are YOU listening to … Are all the negative articles online and in the papers

convincing you that selling is harder in the slowing market?

Are the talking heads on T.V. fueling the fire with their opinions about a subject they absolutely know nothing about?

(Continued on page 2)

Well, on Wednesday, March 19, 2008, you will have two opportunities to hear first hand from Bob Campana just how simple the selling process can be. REIANO Plus will have a special afternoon session from 3:00 PM to 4:30 PM. Then after a short 30 minute break, REIANO Plus will host an extended networking session from 5:00 PM to 6:30 PM where members and guests can breakdown into subgroups to discuss various investment topics of inter-est, including but not limited to, rehabbing, lease option, subject to, wholesaling, buy and hold strategies, CASHFLOW 101 – the game, etc. Following the networking session, REIANO Plus’ regular evening session will start 30 minutes early and run from 6:30 PM to 8:30 PM. This new format will provide, you with the time flexibility to hear Bob Campana plus provided you the opportunity to net-work for a much longer period of time.

REIANO Plus has convinced BOB CAMPANA to give YOU NOT 1 BUT 2 opportunities to show you How to Sell Houses FAST in a Market Slowdown at our early session from 3:00 PM – 4:30 PM or at the evening session from 6:30 pm – 8:30 pm on Wednesday, March 19th, 2008 at the Holiday Inn – Independence at I-77 and Rockside Road. Reg-istration begins at 6:30 PM and the Guest Fee is $20 payable at the door for non-members.

Members are always FREE!

Wednesday, March 19th Meeting HOLIDAY INN – INDEPENDENCE

I-77 & Rockside Road, Independence, Ohio Agenda:

2:30 PM doors open for registration 3:00 PM – 4:30 PM – Featured Speaker 4:30 PM – 5:00 PM – Dinner Break 5:00 PM – 6:30 PM – Networking Session 5:00 PM – 6:30 PM – evening registration 6:30 PM – Featured Speaker 7:45 PM – Break 8:00 PM – Q & A 8:30 PM - Adjourn

$20.00 Guest Fee for Non-Members.* *Credited toward membership if joined within 30 days.

NEXT MEETING!

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June 2003 Page 2 The Wealth Builders Journal March 2008 Page 2 The Wealth Builders Journal

MONEY TIME is NOW … The truth is that the REAL MONEY is made when the

real estate market is in the “down cycle” – which is where sellers panic and real estate investors, like you and me, come to their rescue and, for a lack of a better term, CLEAN UP!

Overcoming Your Fear … Now, one of the most common things people fear about

either starting or expanding their real estate investment business during a “down cycle” - even though they know this is where the REAL MONEY is made — is the FEAR that they can't sell the house and somehow they'll get stuck with it. Bob Campana understands why this would create anxiety for you because you simply don't have enough facts to overcome the fear. So let's get it fixed right now. The truth is … selling should be the easiest part of your business. Bob Campana says, “Don’t Worry – I Can Fix It!”

Here's Some Of What Bob Campana Will Cover: • 10 reasons why houses don't sell and why most are

people problems easily fixed. • How to get a house ready to sell for less than one

monthly payment so buyers fall in love with it at first sight.

• How to set the house up to show itself with no hu-man intervention so you'll never have to risk your life and waste your time meeting prospects there at 8PM.

• How to manage your business so you're flexible enough to let the market tell you how it wants to buy so you can implement any one of five exit strategies and match the house to the buyer and quit looking for perfect prospects.

• How to get your buyers into credit repair to move up there score allowing them to get conventional or FHA loans with 100% financing that skyrocket your profits.

• Why cashing out immediately is the most costly exit you could pick and cuts your profits in half...and how to fix it and still have a huge cash flow.

• I'll hand you guerrilla marketing techniques you can use on a paupers budget to drive in a herd of buyers within 2 days. Your entire cost to sell a house should be less than one month's payment.

• How to capture all incoming calls and never talk to anyone until they've seen the house, fall in love with it, have been instructed how to buy and what to do next, filled out an application and submitted to you by fax or online.

If 2008 is to be your quantum leap year you must let Bob Campana get you automated and systemized so he can remove your biggest hurdle to selling houses … YOU!

This ain't about time spent. It's about doing (or having done), the right things.

And just for the record …

If You Ain’t Buying all the Houses You Can Handle in

This Slowing Market You Better Get Off Your Butt and Fix It `Cause this Slowing Market

Won’t Stay Slow Long.

(Continued from page 1) … Selling Houses in Lightning Speed in Today’s Market! …

(Continued on page 3)

“The Wealth Builders Journal” 5007 Lorain Avenue, Cleveland, Ohio 44102

Editors: Mary Lou Best Shannon I. Best, II Contributing Writers: Curtis Gadd Richard Hackerd Rex Harper Howard Kass Howard Krantz Jim Larson Nina Murzyn Chris Myrick Jackie Parries David Riehl Dennis Zab Writers’ and speakers’ comments are not necessarily those of the Association; seek professional advice. Members are encouraged to submit articles, questions, and letters for publication consideration, subject to editing. Quotations permitted with full credit given author, plus name, address and price of this newsletter. Published 10 times per year. Subscriptions are $36 or included in your membership dues.

Custom Property Management Tailored to Your Needs!

Best & Associates, Inc. The Full-Service Property Management Co.

Shannon & Mary Lou Best

Phone: (216) 961-8855

PLEASE SEND US YOUR E-MAIL ADDRESS!!!

By using e-mail, we enhance our com-munication

and improve our service to you. Please send your e-mail address to :

[email protected] The information you provide

will remain confidential.

Page 3: Selling Houses Fast In A Market Slowdown · Page 2 The Wealth Builders Journal March 2008 June 2003 MONEY TIME is NOW … The truth is that the REAL MONEY is made when the real estate

Page 3 Volume 4, Issue 6 The Wealth Builders Journal Page 3 Volume 10, Issue 3 The Wealth Builders Journal

“LIKE A GOOD NEIGHBOR, STATE FARM IS THERE.” WE LIVE WHERE YOU ARE

Carolyn Kuczmarski, Agent 7119 Brecksville Road

Independence, OH (216) 328-0280

LIKE A GOOD NEIGHBOR STATE FARM IS THERE

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(216) 373-7425 FAX: (216) 373-7425 [email protected]

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In fact, it’s already starting to turn and if you blink you'll miss your golden opportunity to load up with killer deals.

That's why REIANO Plus has convinced Bob Cam-pana to give YOU NOT 1 BUT 2 opportunities to show you how and why you should be taking advantage of this once in a life BUYER’S MARKET before it’s too late!!! Believe me when he says, “You will be SORRY, if you do NOTHING!!!”

Wednesday, March 19th, 2008 Holiday Inn – Independence at I-77 and Rockside Road

A Look At What Some Of Bob’s Students Have Been Doing Lately …

Hi Bob,

I just closed on another house April 29th. Made $15,000 on the deal.

That's my second since the Boot Camp last May. The real good news is that I have a verbal agreement on another, lots of activity on even another and yet a few others in the pipeline.

I remember hearing a lot of what you said in Boot Camp and thinking "That can't be true". Well, it was true! I have been at this for less than a year and it's amazing what I've learned and how much progress I've made in this business. On top of that the best is still ahead of me. Thanks again for the training.

God bless and I'll keep in touch, Don N.

McMurray, PA

Bob, This Friday, 3-23-07, I am closing a home

that I bought at sheriff sale, 9-06. I paid

(Continued from page 2) … Selling Houses in Lightning Speed in Today’s Market! …

(Continued on page 13)

Early session – 3:00 PM – 4:30 PM

Networking Session – 5:00 PM – 6:30 PM

Evening Session – 6:30 PM – 8:30 PM

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June 2003 Page 4 The Wealth Builders Journal March 2008 Page 4 The Wealth Builders Journal

MB.801723.000

CASHFLOW GAME! Wednesday, Mar. 26th, 2008

6:30 to 10:00 PM at the REIANO plus Office!

5007 Lorain Avenue, Cleveland, OH 44102

RSVP by calling: (216) 651-6655 or e-mailing [email protected]

by Monday, Mar. 24th, 2008 Cost: $5.00 Sign Up Today!! Members Only.

MAIN STREET FINANCIAL WE SPECIALIZE IN WORKING

WITH REAL ESTATE INVESTORS! WE OFFER THE FOLLOWING

INVESTOR LOAN PROGRAMS: • NO SEASON REFINANCES UP TO 100%

LTV • 100% LTV PURCHASE PROGRAMS • NO INCOME VERIFICATION UP TO 95%

LTV • FINANCE BUYERS WITH NO SELLER

SEASONING PROBLEMS • NO MONEY DOWN HOUSES FOR SALE • HARD MONEY & INSTITUTIONAL PUR-

CHASE/REHAB LOANS AVAILABLE WITH NO MONEY DOWN

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CALL TOM LOWRY AT MAIN STREET FINANCIAL

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CELL: (216) 214-3537

SHANNON I. BEST II, GRI

FAX: (216) 961-8816

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For Renovation of Single Family Houses. East-Side Suburbs

Minimum 5 years experience.

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Submit qualifications to: PO Box 1492, Mentor Ohio 44061

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www.eHowell.com

34331 Ridge Road, Willoughby, Ohio 44094 440-943-7000

Howell Insurance Agency

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Page 5 Volume 4, Issue 6 The Wealth Builders Journal Page 5 Volume 10, Issue 3 The Wealth Builders Journal

by Richard Roop

H ousing markets through-out the nation are chang-ing. It’s getting harder to

buy right in some areas and tougher to sell quickly in other ar-eas.

Many creative real estate inves-tors will leave the business frus-trated that what was once working well is not working as well any-more. Attendance at real estate in-vestor club meetings is declining. People are giving up on their dreams.

You don’t have to become a statistic. Don’t let changing mar-kets prevent you from enjoying the rich rewards available to you as a real estate entrepreneur.

I believe that the present real estate environment creates new opportunity for investors willing to adjust as markets change. Sell-ers still need to sell. Buyers still need to buy.

Fine tune your strategies and tactics now, so you can continue to generate profits by helping the growing population of buyers and sellers who need your help.

Here are some new challenges you may be facing now:

• Finding deals you can buy right and ensure a good profit;

• Collecting enough cash each month to survive and thrive;

• Negotiating with sellers who think the market has not turned yet;

• Selling or occupying houses quickly in slower moving markets;

• Surviving negative cash flow deals long enough to collect a big backend;

• Holding property when val-ues are expected to decline;

• Constructing offers that ex-cite you, protect you, and still get accepted.

Find deals you can buy right and ensure

a good profit Effective direct response mar-

keting is the key to finding deals—in any market climate. You want to be-come a top notch marketer now more than ever. You must become more selective or more targeted getting the right message to the right people at the right time.

First, become a big fish is a small pond. Your “pond” or market can be a part of town or a type of list to target. Specialize and focus on houses that are easier to sell. Buy the types of property that attract the biggest pool of buyers.

This will usually be around the median price range, plus or minus 20%. Condos, town homes and modu-lar homes can suffer first during changing markets. And higher end homes may experience bigger price drops when values turn down.

So why not target the bread and butter neighborhoods? Look at areas where the homes experience fewer ”days on the market.” Choose cities, counties, zip codes or parts of town that have a high concentration of these types of homes. Then use cost-effective media to target these ”geographic” areas.

My favorite geographic marketing includes:

• Specially designed Post It notes distributed door to door

• Flyers inserted and ads placed in targeted community publi-cations

• Bandit signs During tough times,

get more targeted What’s always better but requires

more work is “demographic” mar-keting by sending postcards and let-ters to more refined lists. You can get mailing lists of homeowners who own the type of property you think will sell faster including lists based on:

• Property type • Size or square footage • Year built or age • Beds and baths • Years owned • Type of existing loan • Equity

Other proven lists include: • Non-owner occupied

houses • Expired listings • Pre-foreclosures • Bankruptcy • Divorce • Probate

The more targeted the list, the smaller the list. That means you can spend some extra time or money mak-ing your letters or post cards more personal and creating campaigns that hit the prospective seller a number of times.

Personalized (or at least personal looking) direct mail always gets a bet-ter response. Then add to that a plan for mailing five or more times to the same list, and you’ll get the best re-sults.

(Continued on page 6)

How to Win BIG in Changing Markets (Part I)

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June 2003 Page 6 The Wealth Builders Journal March 2008 Page 6 The Wealth Builders Journal

With that said, a good marketing message delivered via cheap post-cards to a semi-targeted list (such as bread and butter homes bought within the last three years) can still work well even on the first hit.

My rule of thumb with the inves-tors I consult with nationwide: Spend up to $1,000 on any marketing cam-paign to test it. If it don’t generate enough leads to buy one house (with an average profit of $20,000 or more), then you may need to test a different geographic area or demographic list.

Collecting enough each month to survive and thrive

The best way to raise cash each month is to sell or occupy a house. Living and surviving off positive cash flow is a myth with single family houses.

Why? Suppose the positive cash flow on an average house is $200 a month. How many houses do you need to collect $10,000 a month in income? Well, I think that’s fifty houses!

Now, how many houses do you need to flip or cash out of to collect $10,000 a month? For most investors in most markets that could be:

• One or two wholesale flips, or;

• Collecting less than one backend profit, or;

• Just one “pretty house” flip every two or three months.

If you need cash, sell a house. Sell a house you bought last year or last month. Or sell a house you don’t even own yet by assigning your con-tract or by getting an option to buy it and then quickly selling for all cash using the “round robin“ or “9-day sale“ method.

If you need cash, buy a house. Locate or target houses with lots of equity. Then use non-bank qualifying “collateral loans“ from hard money

lenders or private investors to borrow against the equity on the same day you buy it. Use the extra cash you collect at closing for:

• Giving the seller a cash down payment

• Making up delinquent pay-ments

• Fixing up the house • Projected holding and clos-

ing costs • Collecting part of your

profit in advance Good tip: Leave at least 15%

equity in the property as a safety cushion.

If the seller has more money com-ing to them later from a note you cre-ated, they could take a second or third lien position, preferably at very good terms to you.

Sellers who think the market hasn’t turned

As real estate professionals, we notice the effects of a changing mar-ket before the average homeowner does. Indicators to watch and track include:

• Increasing number of un-sold homes;

• Widening gap between ask-ing prices and actual sales prices;

• Stagnant or declining prices;

• Longer days on the market. These indicators of a changing

market are available through the me-dia, Internet, and real estate databases such as your local Multiple Listing Service (MLS). Gather these statistics, charts, and graphs and use them when negotiating with sellers. Project these trends into the near future when plan-ning your exit for making your offers.

Sellers may or may not be aware of these changes. Some still think that the market is strong. Therefore they may think they can do better by not accepting your offer. It helps to have

proof and evidence showing them why they should sell now at the price and terms you’re offering.

Too many sellers have become unrealistic in their expectations. You want to get good at helping them get in touch with reality.

One shortcut is to target expired listings in post-hot markets. You’ll have to do less convincing with them. They may have already been beat up by the market and now may have less time to play around.

Check out www.RealtyTimes.com to get a current snapshot of your local price trends and market climate based on reports from real estate profession-als in your area.

In Parts Two and Three, you’ll learn to succeed in changing real es-tate markets, allowing you to over-come big challenges like:

• Selling or occupying houses quickly in slower moving markets;

• Surviving negative cash flow deals long enough to collect a big backend;

• Holding property when values are expected to de-cline;

• Constructing offers that excite you, protect you, and still get accepted.

About the Author

Richard Roop is a full-time inves-tor who has been called The Mar-keting Consultant for Real Estate Entrepreneurs. He is the President of Bottom Line Results, Inc., a real estate acquisition company located in Woodland Park, Colorado since 1996.

As a successful marketing con-sultant since 1984, Richard special-izes in providing innovative business and marketing advice to real estate entrepreneurs. His articles have ap-peared in various entrepreneurial, real estate, and marketing newslet-ters across the nation, and he is the author of How To Sell Your Home in 9 Days.

(Continued from page 5) … How to Win BIG in Changing Markets (Part I) …

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Page 7 Volume 4, Issue 6 The Wealth Builders Journal Page 7 Volume 10, Issue 3 The Wealth Builders Journal

ATTENTION INVESTORS

How would you evaluate an investment opportunity with the following attributes:

You the investor purchase an asset with minimal out of pocket cash. Typically less than $4,000 to acquire the as-set. You purchase the asset at a steep discount relative to current value. Within a short period of time (2 months or less), the asset pays you a distribution which is roughly equal to your

initial cash investment. The asset pays you a modest monthly cash flow. You realize significant tax benefits, typically around $4,000 per year. You gain equity in the asset at the rate of about $1,000 per year, guaranteed. The risk of the asset depreciating in value over time is very small. However, you have an upside potential of

$18,000-20,000 profit by selling the asset after 1-2 years. HIGH INVESTMENT RETURN DOES NOT HAVE TO COME WITH HIGH LEVELS OF RISK. The investment is a ‘passive’ activity. Very little time or effort is required on your part. The asset’s performance is NOT dependant on stock market fluctuations, interest rates, crude oil prices, consumer

spending, or the whims of other investors. SOUND TOO GOOD TO BE TRUE? CONSIDER THIS:

• 1st year return on cash investment (ROI) 200%. • 2nd and future years ROI 100% per year.

Do your current investments offer this level of performance? If you would like to supercharge your returns with very low out of pocket cost and minimal risk, start thinking ‘outside the box’, and call (440) 477-9305 for more details.

by William Bronchick, JD

T axes are your biggest expense in your lifetime, so choose your source of income wisely!

Real estate has some of the best tax breaks of any investment in Amer-ica!

The more you earn through your job, the more you get taxed, and the system is setup that way to punish hard workers and reward investors. Have you looked at the bottom stub of your paycheck lately and seen how much the government steals from you?

Wage income not only requires work, it gets taxed at a very high rate, plus the government takes FICA, which is put into a system that may be bankrupt when you retire. Real estate

has so many tax advantages over wage income:

Capital Gains Rates The maximum federal tax rate on

capital gains is 15%, whereas wage income is taxed at 35%. There’s state taxes, too, and some states offer fur-ther discounts on capital gains in-come.

Remember, capital gains requires that you hold a property for 12 months or more before selling and that it was held for productive use (i.e., as a rental, not a long-term fix and flip).

Exemption for Principal Residence

If you sell your residence, the first $250,000 is exempt from gain or $500,000 if you are married. Remem-

ber, this requires that the residence was used as such for two of the last five years.

1031 Exchanges Under IRC Sec 1031, you can roll

your profits from a rental property into more real estate and defer paying taxes altogether. Your tax basis rolls into the next property.

The rules are rather stringent, in that the exchange must be completed with 180 days, and the exchange prop-erty must be indentified with 45 days of the sale of the relinquished prop-erty (more info at www.1031x.com).

(Continued on page 11)

Reduce Your Taxes by Investing in Real Estate

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June 2003 Page 8 The Wealth Builders Journal March 2008 Page 8 The Wealth Builders Journal

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June 2003 Page 10 The Wealth Builders Journal March 2008 Page 10 The Wealth Builders Journal

With the world's most comprehensive data-base of real estate information and prop-erty characteristics along with parcel maps, real estate investors use it quickly to de-termine what a property is worth, based on comparables sales during a given period of time along with the property’s location and physical characteristics.

This investment tool will give you the edge over your competition and will drastically increase your bottom line.

REIANO Plus members will receive 50% DISCOUNT OFF the purchase of RealQuest®. Subscriptions are available for Cuyahoga, Lake, Summit, Lorain, Me-dina, Portage and Stark.

NOTE: If you are a real estate profes-sional i.e. appraiser, broker or agent, you are NOT eligible for the discount. Thank you.

Contact Sharon Stark at 440-632-3495 to order your subscriptions today and for more information.

Sharon Stark at 440-632-3495

[email protected]

by William Bronchick, JD

M any people start out in real estate investing with great fervor, only to become dis-

couraged after a few months when they don’t attain instant fortune.

They discover they can’t get rich quickly and easily, so they move on to the next scheme. These impatient in-vestors often make one common mis-take: They learn a few tricks and think success will follow instantly.

Another common mistake is seeing the instant success of someone else and believing you’ll have the same results. In reality, this rarely, if ever, happens. These people may have had a good plan, but face failure because they didn’t give the required effort necessary to achieve the goal.

It takes a lot of work to achieve long-term success in real estate, which is why so few accomplish it on a grand scale.

Start with lofty, but reasonable goals

Thinking big is great, but I cringe when I hear someone say, “I want to make a million dollars in real estate in my first year. “ Everyone loves a dreamer, but there’s a fine line be-tween dreams and delusions!

Someone who earns $50,000 a year and has no prior experience in-vesting in real estate probably would-n’t make that kind of money by next Christmas.

What kinds of expectations are realistic for a beginner? The best approach is to set short-term, interme-

diate, and long-term goals. Be sure your goals are realistic, specific, and attainable.

For example, your goals may look like this:

• Fifteen-year goal: Retire with $10,000 in passive income per month, inflation-adjusted. This may require between $3 million and $4 million in free-and-clear rental real estate.

• Five-year goal: Acquire between $3 million and $4 million in real estate in steadily appreciating ar-eas. Buy, fix, and flip five proper-ties per year at an average profit of $20,000 to replace current in-come.

(Continued on page 11)

Getting Rich in Real Estate Takes a Well-Defined Plan

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Page 11 Volume 4, Issue 6 The Wealth Builders Journal Page 11 Volume 10, Issue 3 The Wealth Builders Journal

Interest Deduction You get to deduct interest you pay on debt

you have used to acquire your real estate. Depreciation

For rental properties, you get a tax deduc-tion for the “wear and tear” on the structure, even if the property increases in value! Thus, you can actually break even or make money, but on paper show a loss to offset other in-come.

No FICA Tax Your income from real estate is generally

NOT subject to FICA tax withholding. Regu-lar self-employment income is subject to 15.3% tax on the first $97,000, and thereafter your earned income is subject to medicare withholding (which you may never get back in your lifetime, the way things are going!).

It’s not just what you make; it’s what you keep—Plan wisely where your income comes from, and you will keep a lot more.

(Continued from page 7) … Reduce Your Taxes by Investing in Real Estate ...

• One-year goal: Wholesale two or three properties, buy, fix, and flip (retail) two properties and acquire three rental properties to keep long term.

• Six-month goal: Buy one rental property and do two or three wholesale flips.

Be as specific as possible … and take time to do the math. For example, if your

goal is to retire within fifteen years, how much income will you need to attain that goal? If you need $10,000 per month, will that require owning and collecting rent on five houses? Ten houses?

Will you be managing that property? If you pay a man-ager, how will that affect your bottom line? If you need $10,000 in today’s money, what will that amount be worth adjusted for inflation? The more diligently you put the pen to paper (or the fingers to the keyboard), the better pre-pared you’ll be.

To avoid setting yourself up for certain disappointment and possible financial disaster, you must forget the dream of becoming an overnight millionaire. Instead, focus on the slow-and-steady route, aiming to accumulate wealth one small step at a time, one deal at a time.

And, of course, seek help along the way from quali-fied experts who are active in the business. The more mistakes you can avoid on your path to riches, the faster you will reach your destination.

About the Author William Bronchick, J.D. is an author and attorney who regularly presents work-shops and do-it-yourself seminars at real estate and landlord associations around the country. He is the president and co-founder of the Colorado Association of Real Estate Investors. Bill specializes in all forms of asset protection and is the author of several great home study courses.

(Continued from page 10) … Getting Rich in Real Estate Takes a Well-Defined Plan …

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HOWELL INSURANCE AGENCY

$35.00 Screening Services

Tenant and Pre-employment Screening

Members of The Cleveland BBB

440-230-2929 Fax: 440-230-0317

CREDIT REPORTS

Be a Problem Solver by Denis Waitley

Y ears ago, a young mother about to go out with her hus-band prepared to feed their

baby before they left. The husband became impatient as she started her daily routine of mashing vegetables through a strainer. Tired of him standing over her with the car keys in one hand and the other hand on the door knob, she turned the task over to him. Within a few minutes, the strainer, peas, carrots, and bowl ended up in his lap. As he changed

clothes, he reasoned that there must be a better way to prepare baby food and that there must be a lot of frus-trated parents who didn´t enjoy the monotony of straining fruit and vege-tables three times a day. Soon, they began discussing the idea of design-ing machinery to strain the food in a factory and sell it already prepared.

Fortunately, the young father and his dad owned a small canning plant, but it was difficult to sell the older man on the concept. One mistake that harmed a child would destroy every-thing it had taken them a lifetime to

build. And what about the expense of market-ing surveys, devel-oping and financ-ing new machin-ery, packaging, getting stores to accept the prod-ucts, and getting parents to buy something totally new at a price that

would be both affordable and profit-able? You’ve been through this in your own organization or family when someone comes up with an idea that colors outside the lines! I see you’re nodding affirmatively.

The risk was enormous, but in the end, they went forward with their idea because it filled a need they un-derstood first-hand. They had the skills and experience. And the market was so vast that the positive benefits far outweighed the negative factors. One year after Dan Gerber dumped the strainer of cooked vegetables into his lap, the Gerber Products Company introduced its first five baby foods to the market. The point of the story is that, so often, an idea becomes a goal when we realize it meets a need in our own lives and the lives of others. Our motivation to achieve this goal is dependent upon how strong our need is and whether or not we have the determination, optimism and tough-ness to follow through our ideas to fruition.

(Continued on page 14)

Mountain Resort Lots for Sale

Innsbruck Resort & Golf Club is nestled high in the mountains of northeast Georgia in the scenic Alpine town of Helen. You will find it's a special place, a four seasons resort community, nestled in the foothills of the Blue Ridge Mountains.

Private owner is retiring and liquidating assets. Owner financing for qualified individuals.

Contact: Bob Murzyn at (440) 461-4646 or at [email protected]

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$110,000.00 for a builders model home. It sold for $155,000.00 and I will net $27,000.00, from the sale, I will bring the HUD-1 to the seminar at Chenoweth Drive Friday at 12:00. I have been a broker since 1982, and it wasn't until I attended your seminar that I put into PRACTICE all the things I had forgotten over the years. After the seminar I immediately ran a "Cash for your home" ad, and I have faithfully attended the Sheriff Sales, Tax Sales, and FNMA auctions.

I owe you a debt of gratitude for bringing me back to do the things that make money.

Thank You, Bob Campana Greg F., Broker

Here’s a little bit about Bob Campana … Bob owns and operates Twin Oak Enterprises, Inc. a real

estate investment company which specializes in buying and selling single-family homes in northeast Ohio.

Bob’s real estate business has grown dramatically giving him the opportunity to leave a lucrative career in retailing making a six figure income to become a real estate investor on a full-time basis earning many more times that. His con-

servative and low risk style of investing will teach you how to buy and sell single-family homes right here in your area.

His system teaches how to get single-family homes bought at the lowest possible price, remodel them and sell them at top retail value quickly. His methods will show you how to work with buyers of all credit types, A,B,C, and D to get your houses sold quickly, so you don’t have to wait around for that A+ buyer.

Bob has become a national speaker and trainer in the exciting field of real estate. He wants you to approach this business to buy houses as if you were dead broke and didn't have a cent to your name. You don't need any of your own money to succeed. He has one of the highest success rates in the country of successful students because he makes coach-ing a part of his system.

There are a lot of good folks out there right now search-ing for a vehicle that can get them financially where they want to go. Some will be searching forever but your search is over! Bob focuses on the minority of people who want to live in the real world, people that are self-motivated and shakers and movers. These people have the drive, ambition and burning desire to get ahead. Listen, Bob thinks you’re probably just like him, meaning that you like to learn every-thing you can about real estate and apply it to make your own fortune. Real estate has made him a multimillionaire and his mission is to help as many people as he can reach their financial independence.

(Continued from page 3) … Selling Houses in Lightning Speed in Today’s Market! …

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2008 REIANO PLUS 5007 Lorain Avenue

Cleveland, Ohio 44102 Office: (216) 651-6655, x26 Fax: (216) 961-8816

Website: www.REIANO.com Information: [email protected]

ADVISORY BOARD Dennis Zab ………………………… (216) 496-0427 cell/vm

Howard Kass ….…………………... (216) 831-0733

Shannon Best ……………………… (216) 651-2464

Mary Lou Best …………………….. (216) 214-3538 cell/vm

Nina Murzyn …………………….... (216) 496-0428 cell

Jacqueline Parries …………………. (216) 721-5333

Diane Friedman …………………. . (216) 291-1009

BEFORE YOU PAINT STINKY AREAS OR REPLACE SMELLY CARPETS AND

REFRIGERATORS – Use OdorXit To Eliminate –

Pet and Organic Odors Forever! Make Sure Your Investment

has No Smell At All!

OdorXit will SAFELY Eliminate: • Cat Urine Smells Embedded in Carpets,

Fabric, Wood & Concrete! • Rotten Food Odors from an Unplugged

Refrigerator! • Dog/Cat Feces Odors in Carpets/Floors! • Male Cat “Territorial Spray” Odors! • Mold & Mildew Odors! Flood Damage Odors! • Sewer Backup Odors!

Only $ 35* for a 16 oz concentrated bottle. Makes 4 Gallons!

Call (216) 651-6655 or Fax (216) 961-8816 and ORDER Now!

Members price only. Non-Members: $39.00.

January 23rd February 20th March 19th April 16th May 28th June 18th

July 16th August (no mtg) September 17th October 15th November 12th December 17th

2008 MEETING SCHEDULE

REIANO Plus LLC assumes no responsibility for claims made in Trade, Swap & Sell. Following is the listing of those items presented for Trade, Swap & Sell at the February 2008 Membership Meetings:

Trade, Swap & Sell

• NEED PRIVATE LENDER FOR QUICK RETURN ON MONEY SHORT SALES ......................................... ART & LEE 440-935-3720

• EXPERIENCED REAL ESTATE BROKER 40 YEARS ......................................................................... AL 440-725-1948

• NEED A CREDIT PARTNER FOR A PRECONSTRUCTION .................................................................. BERNIE 440-773-6102

• PROPERTY MANAGEMENT FOR INVESTORS ................................................................. BEST & ASSOCIATES 216-214-3538

• C21 HOME STAR REALTY OVER 25 YEARS EXPERIENCE WITH INVESTORS .................................. SHANNON 216-214-3537

• ODORXIT CONCENTRATE $35.00 BOTTLE KO EXTREME ODORS ................................................. MARY LOU 216-214-3538

• INVESTMENT ADVISOR OFFERS RE INVESTORS ASSET MANAGEMENT ........................................... DARREN 216-832-9001

• IDENTITY THEFT TAKES PLACE EVERY 79 SEC BE PROTECTED FOR $12.95 ................................. CHARLIE 877-492-9129

• PROPERTY @ WHOLESALE PRICES ............................................................................................ NANCY 440-537-2026

• INVESTOR LOANS—25 YEARS EXPERIENCE ................................................................................ RICK 216-373-7425

• CREDIT REPAIRS—WWW.LIBERTYCONSULTING.FIXCREDITBIZ.COM .............................................. RICK 216-373-7425

• HEARTS FOR HOMES; PROPERTIES SOLD 75% LTV ................................................................... ROOSEVELT 216-790-8575

REIANO Plus reserves the right to refuse any and all advertising requests. REIANO Plus also assumes no responsibili ty for claims made in adver-tisements appearing in this newsletter.

Consider the following: • The outboard motor was

invented by Ole Evinrude because he couldn’t row the boat fast enough on a

Wisconsin lake to keep his girlfriend’s ice cream from melting.

• The Automatic Dish-washer was invented by a woman whose house-keeper kept breaking her

fine china when she washed it by hand.

• The ice cream cone was invented by a waffle ven-dor who ran out of plates to serve his waffles.

(Con’t in next issue.)

(Continued from page 12) … Be a Problem Solver …

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June 2003 Page 16 The Wealth Builders Journal March 2008 Page 16 The Wealth Builders Journal

5007 Lorain Avenue, Cleveland, Ohio 44102 (216) 651-6655

E-mail: [email protected] Website: www.REIANO.com

The Professional Journal of the Real Estate Investors Association

of Northern Ohio

FIRST CLASS MAIL ADDRESS SERVICE REQUESTED

Next Meeting ... Wednesday, March 19th, 2008 at 3 PM & 6:30 PM

* EARLY SESSION *

3:00 PM to 4:30 PM

* EVENING SESSION *

6:30 PM to 8:30 PM

* NETWORKING SESSION *

5:00 PM to 6:30 PM

REIANO Plus has convinced BOB CAMPANA to give YOU NOT 1 BUT 2 opportunities to show you How to Sell Houses FAST in a Market Slowdown at our early session from 3:00 PM – 4:30 PM or at the evening session from 6:30 pm – 8:30 pm on Wednesday, March 19th, 2008 at the Holiday Inn – Independence at I-77 and Rockside Road. Reg-istration begins at 6:30 PM and the Guest Fee is $20 payable at the door for non-members.

Members are always FREE!

Do you want to learn every Marketing Se-cret and Auto Pilot Technique that Bob

Campana has learned and used in 17 years to make certain you NEVER

have to worry about ....

Selling Houses Fast In A Market Slowdown

See front page for full details!!