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                                                       “Real Estate Investments & World-Class Property Management”

$39 Annual Subscription                                                                                                     November 2011

What does the Panama Canal have to do with Jacksonville real estate?
By: Gregg Cohen, CEO


 Happy November! It’s hard to believe that the                                                       I actually contacted Greg Rand right after
holidays are just around the corner. But what an         in Florida?                               watching the video just to pick his brain and he’s
exciting couple of months it has been. First, I’m                                                  a great guy. You’ll probably see us doing some
happy to report that we have a new addition to           Greg Rand: Yes, Florida.                  things together in the near future. It’s nice to work
the Jacksonville Wealth Builders Family! Cooper          Fox Business News Host: Well isn’t        with someone who truly sees the opportunity to
Rigel was born on October 3 to Adam, our CFO,            Florida one of the hardest hit places?    invest in single-family housing in Jacksonville that
and his wife Amanda, and Cooper is doing very                                                      the economy is providing right now and who is
well! And, in other exciting news, my fiancée,           Greg Rand: Well that’s it! The bubble     urging others to take advantage of it.
Alejandra (Alex) and I will be getting married on        has been erased. In Florida, almost
November 5. We are very excited to be sharing            across the state, they are back to 2001
our special day with family and close friends.           prices. So we have a chart here for
                                                         Jacksonville. That’s our choice right        “ So today in at prices that you
                                                                                                        are looking
                                                                                                                    Jacksonville,
                                                                                                                                   are
                                                         now. We like looking at these second             down. You can buy a single-
                                                         tier cities that have opportunities for
                                                                                                          family house for $125,000,
                                                         dramatic population growth. So ask
                                                                                                          rent it out for a 10-12% return
                                                         yourself, what does the Panama Canal
                                                         have to do with real estate investing?
                                                                                                          just on the rents and then
                                                                                                          ride the market up as the
                                                         Fox Business News Host: I couldn’t
 Now, on to this month’s top story…
                                                         possibly answer that question.
                                                                                                          population swells.
                                                                                                                                -Greg Rand, CEO          ”
                                                         Greg Rand: Well they are widening                                 www.OwnAmerica.com
  The other day one of our clients emailed me a
                                                         it right now, 100 years from the
link to Fox Business News video that was gushing
all about the Jacksonville real estate market. I
                                                         original digging of the Panama             To watch the entire video, go to http://video.
thought it was such a powerful video that I sent         Canal. They are widening it to allow      foxbusiness.com/v/1202323596001/why-you-
                                                         for these mega-tankers to actually        should-invest-in-jacksonville-florida/.
it to everyone I know, just to show some of the
national publicity Jacksonville’s real estate market     carry 5 times the cargo. When they          Gregg Cohen is the CEO of Jacksonville Wealth Builders. His
                                                         come around the tip of the Panama         company offers real estate portfolio management services
is starting to attract.                                                                            that generate passive income streams while providing our
                                                         Canal and they come into the east         clients with peace of mind. Jacksonville Wealth Builders
 And I want to share it with our Cash Flow Digest
                                                         coast.     Jacksonville has invested      serves clients in 6 different countries and 18 different states
subscribers as well, so I had the best parts of the                                                who have invested in over 250 cash-flowing properties in
video transcribed. Enjoy!                                $600 million in the last few years to     Jacksonville, FL since 2006. In 2011, Jacksonville Wealth
                                                         deepen the port and to expand the         Builders was recognized as the #3 Fastest Growing Company
  From Fox Business News on                              port. [Jacksonville’s] job growth and     in Northeast Florida. Discover how you can earn safe,
                                                                                                   secured, consistent returns through cash-flowing rental
                                                         population grow, because of that….
  October 5, 2011                                        their projected population growth
                                                                                                   properties by requesting your Free Information Kit & Audio
                                                                                                   CD's at www.JacksonvilleWealthBuilders.com or calling (904)
  Fox Business News Host: Well if you                    is to anywhere from 50%-100%              677-6777 .
  feel like you’ve got whiplash from                     population growth in the next 10
  wild market swings, perhaps investing                  years. That’s all housing demand. So
  in real estate is more your speed.                     today in Jacksonville, you are looking                    In this issue:
  Greg Rand, radio host and CEO of real                  at prices that are down. You can buy
  estate website www.ownamerica.                         a single-family house for $125,000,        • The Term Val-ue Defined – Pg 2
  com is back, and we know its about                     rent it out for a 10-12% return just on    • Freddy Krueger or Ben Stein? – Pg 3
  location. So you’ve got two locations                  the rents and then ride the market up      • Congratulations To Our Newest
  for us that you like, but one of them is               as the population swells.                    Clients! – Pg 3, 4


                             2406 University Boulevard West • Jacksonville, Florida 32217 • 904-677-6777                                                      1
The Term Val-ue Defined
By: Adam Eiseman, Director of Sales

 A common topic amongst real estate investors,                                                                  the variable goals, time limitations and focuses
passive and active alike, is in regards to the                                                                  of investors worldwide, the intrinsic value of
value of subject properties. In the spirit on                                                                   the investment makes the most sense.
conversation, I thought we'd delve deeper into
the definition of the word, value. Webster's
dictionary defines value as the following 7                                                                      Let's take a simple case study to bring the
descriptions:                                                                                                   question of value to the forefront:

    1.   a fair return or equivalent in goods, services,
         or money for something exchanged
                                                                                                                    Property 123 Main St:
    2.   the monetary worth of something : market                                                                   Comparable Sales Average: $90,000
         price
                                                                                                                    Company ABC Sales Price: $100,000
    3.   relative worth, utility, or importance <a
         good value at the price> <the value of base                                                                Monthly Cash Flow: $1,000
         stealing in baseball> <had nothing of value                                                                Return on Investment: 12%
         to say>
                                                                                                                    *Company ABC guarantees all rental income*
    4.   a numerical quantity that is assigned or is
         determined by calculation or measurement          is assigned or determined by calculation or
         <let x take on positive values> <a value for      measurement" broaches a new concept when
         the age of the earth>                             considering property value. Dependant upon            Are you willing to pay the sales price of
                                                           the goals of the real estate investor, a true        Company ABC or roll the dice and committing
    5.   the relative duration of a musical note
                                                           definition of a "fair return" may vary. Take an      the time for hopes of a property close to the
    6.   relative lightness or darkness of a color :       investor looking to fix and flip a property in a 6   comparable sales avg? Neither answer is right
         luminosity b : the relation of one part in a      month period, their fair value is determined by      or wrong, as we've determined that each
         picture to another with respect to lightness
                                                           a formula reliant on assuming the willingness        person has a different definition of value.
         and darkness
                                                           of what a price primary home buyer to pay
    7.   something (as a principle or quality)             for that property. On the other side of the
         intrinsically valuable or desirable <sought                                                             So, what are your goals, priorities and focuses
                                                           coin, an investor looking for long term buy
         material values instead of human values —                                                              when acquiring real estate investments? After
                                                           and hold uses a completely different formula
                                                           focused around monthly cash flow and return          our discussion, that seems to be pinnacle before
  Clearly, when discussing the value of real               on investment percentage. I propose that this        you determine how you define value. After all,
estate, we can eliminate descriptions #5 and               school of thought with variable interpretations      property value at its simplest definition may be
#6. So, let's begin with descriptions #2 and               of value is the new age way of defining property     the numerical quantity one person is willing to
#3, which seems to be the focus of most real               value.                                               commit to the investment.
estate investors. The "monetary worth" of a
property is typically determined in the investor
                                                             Additionally, other factors play a role in           Adam Eiseman is the Director of Sales for Jacksonville
community by comparable sales within a recent                                                                   Wealth Builders, one of the country’s largest real estate
time frame and radius proximity. Certainly,                determining the "fair return" as well, such as       investment companies. In the past 5 years, he and
I'd advise all investors to conduct their                  willingness to devote time to the investment.        his team have bought and sold over 250 properties in
                                                           An investor on the price hunt, willing to            Jacksonville, FL. His team speaks nationally to crowds of
independent diligence regarding this approach                                                                   thousands of investors with this mentors, Than Merrill &
towards value and encourage an investor to                 devote hours and hours for dollars saved has         Paul Esajian of A&E’s hit TV show “Flip This House,” and
pay at or below "market value." We'll call this            a different "fair return" value than an investor     has been featured multiple times in the Florida Times-
the common old age way of defining property                willing to pay a premium for a done for you          Union and the Jacksonville Business Journal. In 2011,
                                                           peace of mind investment. This leads us to the       Jacksonville Wealth Builders was ranked as the #3 Fastest
value.                                                                                                          Growing Company In Northeast Florida.
                                                           last description of value above #7. So, which
                                                           of the above paragraphs best defines property
 Next, let's walk through the implications in              value for real estate investors? The concept of
the real estate industry of descriptions #1 and            intrinsic value may be the most accurate way to
#4. "A fair return" and "numerical quantity that           define the word value. Simply because of all of




2                               2406 University Boulevard West • Jacksonville, Florida 32217 • 904-677-6777
Is Your Real Estate Market More Like Freddy Krueger Or Ben Stein?
By: Gregg Cohen, CEO

  Ever seen the Nightmare on Elm Street horror        it's the right place to be investing in long-term,     Here are some very strong indicators for
movies? Remember the feeling you                                   cash-flowing real estate.)                Jacksonville, FL:
felt as you were watching the young
blonde girl (it's always a blonde girl)                            So here's what to look for when              • Jacksonville's population continues
go into the forest (or you can insert                             determining whether or not your                 to increase and ranks 40th in terms
any dimly light area here) where                                  real estate market is more like                 of US Cities
Freddy Krueger is hiding, ready to                                Freddy Krueger or Ben Stein when it           • Home to 8 Fortune 1,000 Companies
attack? You were probably saying                                  comes to cash flow:                             including Modis, CSX, Fidelity, Land-
"No no, don't go there, don't do                                                                                  star, Winn-Dixie, and more
that, you're going to regret that!"                                1. Relatively low prices                     • Strong Navy & shipping industries
Well that's what I feel like when I                                2. Relatively high rental rates              • No state income tax for residents
see investors buying long-term in-                                 3. Strong economic indicators                • Home to the St. John's River & At-
vestment properties in real estate                                                                                lantic Ocean Beaches
markets that little chance of helping                               Our business, Jacksonville Wealth
them reach their cash-flow goals.                                 Builders, has found Jacksonville, FL
The real estate market they are investing in is       to be one of only a handful of these "Ben Stein"       Now, can you see why we feel like we are sitting
like Freddy Krueger to their cash-flow goals,         real estate markets for holding on the cash-          on a real estate investing goldmine here in Jack-
ready to dig his sharp nails into their bank ac-      flowing rental properties. Jacksonville has rela-     sonville, FL? That's why our program, Jacksonville
counts and kill their ROI's. Obviously, this is not   tively low prices and relatively high rental rates.   Wealth Builders, has investors from all over the
a good thing.                                                                                               country licking their chops just to get their hands
                                                       Check this out:                                      on some of these cash-flowing properties.
 As investors, we want our real estate market
to be more like Ben Stein. Remember the TV                                                                  But before you buy any
show on Comedy Central called Win Ben Stein's                                                               rental properties, do me
Money? In the show, the contestants had a shot                                                              a favor and take a deep
at winning Ben's money if they were informed                                                                breath. Look objectively at
and could take action quickly by answering the                                                              your real estate market to
questions. And there was lots of money to be                                                                see if it is a good place to
won by the savvy contestant. That's the type                                                                be investing your money.
of long-term, cash-flowing real estate market                                                               Are you real estate invest-
we want.                                                                                                    ments going to turn out
  The simple fact is that the vast majority (I'm                                                            more like a Nightmare on
guessing like 90% plus) of real estate investors                                                            Elm Street or like you were
that I work with have absolutely no idea how to                                                             a contestant on Win Ben
                                                        These are amazing statistics. Basically, Jack-      Stein's Money?
accurately determine if the real estate market        sonville's median home price is 82% of the
they are investing in is actually good for build-     national average, yet its median gross rent is        Gregg Cohen is the CEO of Jacksonville Wealth Builders.
ing long-term real estate wealth. Heck, I'll be       107%. So, what does it mean when you see
                                                                                                            His company offers real estate portfolio management services
                                                                                                            that generate passive income streams while providing our cli-
honest...I didn't know what to look for when I        low prices and high rental rates? CASH FLOW           ents with peace of mind. Jacksonville Wealth Builders serves
was first starting either. As investors, we just      opportunities! You've found a "Ben Stein" real        clients in 6 different countries and 18 different states who
get so excited to slap some money down on             estate market! Now, dig a little deeper into the
                                                                                                            have invested in over 250 cash-flowing properties in Jackson-
                                                                                                            ville, FL since 2006. In 2011, Jacksonville Wealth Builders was
the table so we can finally say we own some           economic indicators of Jacksonville (or what-         recognized as the #3 Fastest Growing Company in Northeast
property that we never stop to think if that real     ever real estate market you are analyzing) and        Florida. Discover how you can earn safe, secured, consistent
estate market is in line with our goals. (And                                                               returns through cash-flowing rental properties by requesting
                                                      verify the "Ben Stein-ness" (definitely not a         your Free Information Kit & Audio CD's at www.Jacksonville-
just because it's where you live, doesn't mean        word, haha) of your market.                           WealthBuilders.com or calling (904) 677-6777 .




                                     Congratulations To Our Newest Clients!
                  Michael Klink                                        John Finnerty                                             Sean Jagroop

             Owns 1 JWB Investment                               Owns 3 JWB Investments                                   Owns 1 JWB Investment




                            2406 University Boulevard West • Jacksonville, Florida 32217 • 904-677-6777                                                                 3
                      2406 University Boulevard West • Jacksonville, Florida 32217 • 904-677-6777                    4
       JWB Top Referral Partner                                                          Owns 1 JWB Investment
         Jonson Yousefzadeh                                                                 Jeanne Lybecker
        Owns 3 JWB Investments                   Own 2 JWB Investments                   Owns 3 JWB Investments
        Mike and Rena Smith                      Ken Luu and Yining Wu                         Jay Cohen
                             Congratulations To Our Newest Clients!
                                                               “Honored As The #3 Fastest Growing
                                                               Company In 2011!”
                                                                – Jacksonville Business Journal
                                                                                         generated at BeQRious.com
Real Estate Investments &
World-Class Property Management                                SCAN QR CODE TO WATCH VIDEO OF OUR TEAM
                                                               RECEIVING AWARD!
2406 University Blvd W.
Jacksonville, FL 32217
(904) 677-6777
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