The Profit Newsletter February 2013 for Atlanta REIA

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					                                                                                                                                              FEB 2013
                                                                                                                     Atlanta Real Estate Investors Alliance • FEB 2013

                                                                                                                                             MAIN MEETING

       Which Type of Real
                                                                                                                                   Monday, Feb 4th
                                                                                                                                Crowne Plaza Ravinia Hotel
                                                                                                                                 4355 Ashford Dunwoody

       Estate Investing Deal
                                                                                                                                       Atlanta, GA
                                                                                                                                    5:30pm - 9:00pm
                                                                                                                                         Bring Your Blyers
       Has The Highest Yield?                                                                                                 IN THIS ISSUE
                                                                                                                                            Cards & F

                                                                                                                              Which Type of Real Estate Investing Deal
       By Bill Cook                                                                                                              Has The Highest Value?

                                                                                                                              By Bill Cook .............................................................................. 1
                ur bank savings account is                       We bought our first trailer on September                     Atlanta REIA Welcomes D.S. Murphy & Associates
                earning less than 1% interest.                   19, 2008 in Bartow County, Georgia.                          By Jeff Nix................................................................................ 2
                                                                                                                              Learn How to Be a Blue Collar Genius
                It’s not even keeping up with                    Our all-in purchase cost was around                          By Jim Hitt ............................................................................... 6
       inflation. Meanwhile, Kim and I did a                     $5,500. We sold it on November 9,                            Getting Started in Multifamily Part 1
       Lonnie Deal a few weeks back and we’re                    2008 for $16,900 with the following                          By Bill Ham .............................................................................. 7
       getting an eye-popping 50.38% yield on                    sale terms: $500 down, $16,400                               Proving Lender Negligence and Fraud
                                                                                                                                 Part 2: Follow the Money
       our investment. If you’re like us, you                    loan balance for 75 months at 18%                            By Bob Massey ........................................................................ 8
       believe it makes better financial sense to                interest with monthly payments of                            CaptureNotes: Your Life, Color-Coded
       get a higher yield versus a much lower one.               $375. Our yield on this deal is a jaw                        By Don DeRosa ........................................................................ 9
                                                                                                                              Pre-Screening Sellers For Your Real Estate
                                                                 dropping 81.22%!                                                Investing Business – Part 1
       So what’s a Lonnie Deal? Basically, it’s
                                                                                                                              By Kathy Kennebrook............................................................. 10
       when you buy a mobile home (that’s right,                                   There are a number of                      Short Sales Are Sailing
       a trailer) in a mobile home park for cash                                     advantages to doing                      By Kimberlee Frank ................................................................ 14
       and then sell it on time. Hey, in 2008, I                                      Lonnie Deals. First,                    How Do I Handle A Refundable Security
                                                                                        in today’s market,                       Deposit in QuickBooks?
       had the same soured look on my face as                                                                                 By Karen Bershad .................................................................. 15
       you do right now as you ask, “Trailers?                                           there’s a huge need                  Greed In Business - Trouble In The Family
       Seriously? Are you kidding me?”                                                    for       affordable                By Erven Kimble..................................................................... 17
                                                                                                                              Caution Landlords: Accepting Money After Filing
       Back then we were getting tons of                                                   continued on page 12                  An Eviction Impacts Your Rights
       calls from folks looking for $500-per-                                                                                 By Attorney Jon David W. Huffman ........................................ 19
                                                                                                                              New Territories
       month housing. We couldn’t help                                                                                        By Michael Vazquez ............................................................... 20
       them because our single-family houses                                                                                  2013: A Year of Achieving Your Goals with PAC
       rented for between $800 and $1,400                                                                                     By Russ Hiner......................................................................... 21
                                                                                                                              The Best Deals To Do in Real Estate in 2013 & Beyond! Part 2
       per month. I remember telling                                                                                          By Tony Pearl ......................................................................... 22
       Kim that because of the huge                                                                                           How to Quickly Get 10 to 15 Good Rental Properties Paid For
       demand for $500-per-                                                                                                   Free and Clear
       month property, we                                                                                                     By Larry Harbolt .................................................................... 24
                                                                                                                              Membership Application ......................................................26
       needed to start doing                                                                                                  Meeting Calendar.................................................................27
       Lonnie Deals.                                                                                                          Calendar of Events................................................................28

                                                                                                                                                Atlanta REIA, LLC
          Bill will be teaching you “How to Earn Mailbox Money” by investing in high yield assets                                2700 Braselton Hwy, Suite 10-183
          such as mobile homes at the Atlanta REIA Main Meeting on February 4th. Come join                                               Dacula, GA 30019
          us to learn more about the often misunderstood, low cost, high profit world of mobile                                 P: 678-701-7160 • F: 770-216-1560
          home investing. See for more information.                                                  

© 2013 Atlanta REIA, LLC. All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher.                                                             1
                                                                                                                     Atlanta Real Estate Investors Alliance • FEB 2013

       Business MeMBer spotlight

                                        Atlanta REIA Welcomes
                                        D.S. Murphy & Associates
                                        By Jeff Nix,
                                        Director of Business Membership

       D        . S. Murphy & Associates is a full
                service real estate appraisal firm
                with over 25 residential and
       commercial appraisal associates. Their
       average years of experience are over 15
                                                                 praisals, rental analysis and
                                                                 an exclusive product; a con-
                                                                 sultation appraisals, wherein
                                                                 D.S. Murphy is hired as a
                                                                 personal consultant. Over
       years. The firm is headquartered in At-                   the past five years there
       lanta with offices also in North Carolina                 have been more changes to
       and Florida. Each D.S. Murphy associate                   the appraisal business than
       is an expert in their local area. So if you               ever. Federal regulations
       have a property in Cumming, you’ll be                     have changed the way ap-
       working with an associate who lives and                   praisals assigned, commu-
       works in South Forsyth County.                            nication among industry
                                                                 professionals, guidelines for
       D. Scott Murphy, the owner, has an                        choosing comparables, and
       SRA designation from the Appraisal In-                    much more. As a consultant, D. S. Mur-                     be a Business Member of Atlanta REIA.
       stitute, the most respected designation                   phy will prepare a detailed and profes-                    Our Business Memberships are designed
       a residential appraiser can earn and held                 sional, unbiased appraisal. This appraisal                 to give your enterprise as much exposure
       by less than 1% of appraisers. In 2004 he                 will be useful in setting a proper list price,             as possible to our members, guests and
       was appointed by then Governor Perdue                     convincing a buyer of the true value of                    followers based on your membership
       to the Georgia Real Estate Appraisers                     the property, outlining potential apprais-                 type (Silver or Gold) and your ongoing
       Board which regulates 4500+ apprais-                      al issues or required repairs. D.S. Murphy                 level of participation within our group.
       ers throughout Georgia. D S Murphy &                      will also represent the seller through clos-               The more you participate, the more ben-
       Associates has appraised over 150,000                     ing. There is an epidemic problem with                     efit your business will receive. All we ask
       properties in its 30 years.                               low appraisals. If the subsequent bank                     is that you participate with our group as
                                                                 appraiser comes in below Murphy’s ap-                      much as possible and consider offering
       In 1999 D. S. Murphy & Associates                         praised value, they will step in and pre-                  our members reasonable discounts for
       opened a real estate school to offer                      pare a rebuttal letter to be sent to the                   your products and services.
       continuing education classes on vari-                     lender and fight to save your deal. You
       ous appraisal topics. Classes are offered                 may reach their office at 678-584-5900,                    Find out today if your business qualifies
       throughout Atlanta and all AREIA                          via email at                          and if you can benefit from associating
       members can attend any class at no                        or on the web at                         with Atlanta’s most progressive real
       charge and earn CE credits if they hold                                                                              estate investors. Call or email me to-
       real estate sales, mortgage loan officer or               Would You Like to Expose Your                              day to receive a free report, “20 Ways
       attorney’s license. Classes are posted at                 Business to More Active Real                               to Get Your Business Involved with                                         Estate Investors?                                          Atlanta REIA”.

       D.S. Murphy offers a variety of inves-                    Do you own a business that could ben-                      Comment on this article online at
       tor related appraisal products. These                     efit from a whole new segment of clients         
       include as-is appraisals, subject-to ap-                  or new customer base? You too could

                                                         Atlanta REIA Main Meeting
             1st Monday of Each Month at 5:30 PM at the Crowne Plaza Ravinia in Atlanta
                                                See for details

© 2013 Atlanta REIA, LLC. All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher.          2
 A Full Day Workshop presented by Bill & Kim Cook
      Saturday, February 23, 2013 from 9am – 5pm
        At the Hilton Garden Inn, Cartersville, GA
                      Want to know how to use the financial calculator to
                      help determine whether the deal you are working
                       on is worth pursuing?
                       Want to know how to calculate the mortgage
                       payments when a homeowner says “Yes!”
                       to your offer of “Will you owner finance?”
                       Want to know how long it will take you to
  pay off your credit card balance, or how much interest you
  will have paid on your mortgage ten years from now?
  Want to learn how wealthy people just keep getting
  wealthier? It isn’t a secret. They simply understand Money.
  Learning the financial calculator will help you construct
  safer, better, more profitable Real Estate Investing Deals!

  Join us for an eye-opening
  day of Creating Wealth by
  Understanding the Power of
                                              Bring a Spouse for 1/2 price
  the Financial Calculator!                     (that’s “Spouse” with a ring)

Register Online at

                                                                                                                                 Atlanta Real Estate Investors Alliance • FEB 2013

      Atlanta REIA’s mission is to help insure our members real estate success by providing affordable, quality real
   estate investing education; frequent, fun real estate networking opportunities; and ongoing community outreach
  programs to help build, renovate and repair homes for needy Atlanta families while improving our local community.

                                                                                                                                            2700 Braselton Hwy, Suite 10-183
                                                                                                                                                     Dacula GA 30019
                                                                                                                                           P: 678-701-7160 • F: 770-216-1560

             Dustin Griffin                                                      Joe Thompson                                                  Aaron McGinnis
             Executive Director                                                  Leader of Haves & Wants Meeting and Speed                     Leader of the Gwinnett County Group
             P: 678-701-7160                                                     Marketing Session                                             P: 404-788-3625
             F: 770-216-1560                                                     P: 770-403-3227                                               E:
             E:                                           E:
                                                                                                                                               Steve Brown
             Christine Griffin                                                   Karen Bershad                                                 Leader of Cash Cows Commercial Group
             Assistant Director                                                  Director of Membership & Leader of the                        P: 770-378-6235
             P: 678-701-7160                                                     Small Business Group                                          E:
             F: 770-216-1560                                                     P: 770-356-1234
             E:                                          E:                             Don DeRosa
                                                                                                                                               Leader of Mobile Real Estate Rockstars Group
             Jeff Nix                                                            Leslie Mathis                                                 P: 678-410-7352
             Director of Business Membership                                     Leader of Atlanta REIA West                                   E:
             P: 678-776-8861                                                     P: 678-895-1460
             E:                                                E:                               Rock Shukoor
                                                                                                                                               Leader of I Love Marketing Group
             Gordon Catts                                                        Reginald Jackson                                              P: 678-938-4776
             Director of Programs, Leader of Movers & Shakers,                   Leader of Atlanta REIA South                                  E:
             Atlanta REIA South & Mountain REIA                                  P: 404-427-8797
             P: 404-454-3567                                                     E:                                  Michael Vazquez
             E:                                                                                                              Leader of Spanish Investors Networking Group
                                                                                 Russ Hiner                                                    P: 678-951-9222
             Alan McDonald                                                       Leader of Creative Deal Structuring Group and                 E:
             Director of AVS, Leader of the Beginning Investors                  Mastermind Group
             Group & Cashflow Group                                              P: 404-660-4289                                               Bob Massey
             P: 770-369-0446                                                     E:                                            Leader of Short Sale & Foreclosure Group
             E:                                                                                                        P: 706-816-9820
  LEGAL DISCLAIMER: Atlanta REIA, LLC promotes practical knowledge of real estate
  investment though education, discussion and networking. The information, views and
  opinions expressed in the publication do not necessarily reflect the views, policies and                                                     Mark Galey
  opinions of Atlanta REIA, LLC or any of its members and sponsors, nor does mention                                                           President of Fuller Center of Atlanta
  of certain trade names, products, services, individuals or organizations imply endorsement                                                   P: 404-867-3258
  by Atlanta REIA, LLC or its members or sponsors. The information presented in this                                                           E:
  publication is made available for informational purposes only and is not to be construed
  as financial or legal advice which should only be obtained through a competent attorney,
  accountant or other qualified professional advisor. Atlanta REIA, LLC does not pre-qualify,                                                  Aislee Jackson
  evaluate, endorse, guarantee or warranty any particular deal, service, company, or person.                                                   Director of Savannah REIA
  Atlanta REIA, LLC recommends you perform your own due diligence and seek appropriate                                                         P: 912-695-0665
  legal, accounting, or other professional advice before making any investment. Atlanta
  REIA, LLC disclaims any and all liability for any actions or inactions taken by readers of                                                   E:
  this informational material or as a result of communications from or to its officers, directors,
  employees, contractors, partners, members, sponsors and affiliates.

                            Keep up to date with our latest opportunities by joining us on Facebook

© 2013 Atlanta REIA, LLC. All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher.                             4
       Main Monthly Meeting
            February 4                                                   th                                                         Crowne Plaza Ravinia Hotel
                                                                                                                                     4355 Ashford Dunwoody

            Atlanta REIA                                                                                                                   Atlanta, GA

            Main Monthly Meeting
                “Earning Mail Box Money” with Bill Cook
                Atlanta REIA is very excited to announce that local real estate investing expert and leader of North
                Georgia REIA, Bill Cook, will be speaking at our Atlanta REIA Main Meeting on February 4th at the
                Crowne Plaza Ravinia in Atlanta which starts at 5:30 PM.
                Bill Cook and his wife Kim have been investing in real estate in Georgia for over 18 years.  They own
                a fair number of single-family rental homes, they flip houses, plus they do a lot of note and option
                deals.  But the one unique thing they do that gives them the highest yields on their investment
                dollars and jam packs their mailbox with money is their mobile home investments… that’s right,
                they buy ugly, used trailers!

                                                                                                                                    Bill Cook
                For example, they buy a used mobile home in a mobile home park for around $3,000, do a quick
                clean up and fix up, then sell it for $9,000 with $500 down at 18% interest with payments of
                around $275 per month for around 4 years.  The results of this simple deal are eye-popping!  They
                quickly turn $3,000 into $12,000 while getting a yield of around 100%!  Try matching these results
                with ANY other type of real estate investing vehicle.  And here’s the best part, you don’t need a lot

                                                                                                                              MEETInG AGEnDA*
                of money and there is very little competition!
                Join us at our February meeting if you want to see real-world examples - including pictures and
                paperwork - of what Bill and Kim do to earn their mailbox money and how they do it!  There is no
                                                                                                                              3:00 pm        Meeting Before the
                fluff… it will be all meat and potatoes! 
                                                                                                                                             Meeting with Don DeRosa
                At February’s meeting, Bill will be answering the following questions:
                                                                                                                              5:00 pm        Vendor & Event Setup
                     •        Why do Lonnie Deals?
                     •        What is a Lonnie Deal and how does it work?                                                     5:30 pm        Vendor Trade Show &
                     •        How do you find the right mobile homes to buy?                                                                 Networking
                     •        Which mobile home deals should you avoid?                                                       6:15 pm        Announcements + Haves
                     •        How to work with park owners?                                                                                  & Wants Speed Marketing
                     •        How to find sellers?                                                                                           Session
                     •        How to buy a “trailer”?                                                                         7:15 pm        Networking Break
                     •        How to sell a “mobile home”?
                                                                                                                              7:30 pm        “Earning Mailbox Money”
                     •        What to do if the buyer doesn’t pay you?
                                                                                                                                             with Bill Cook
                     •        When is the best time to do Lonnie Deals?
                     •        Examples of real deals that Bill and Kim have done                                              9:30 pm        Late Nite Networking at
                     •        And much more!                                                                                                 the Tilted Kilt Perimeter
                                                                                                                              *Please Note: Meeting agenda is subject to change.
                Come spend the evening with Bill on February 4th and let him teach you how to earn all the
                mailbox money you can handle in 2013!

                                                                                                                                                             Bring y
                                            Atlanta REIA Members can attend for FREE!                                                                       cards & ur biz
           Your Name   s Member
                                            non-Members & Guests Can RSVP online at
           Gold Busines
                     Member No.
 Valid Until:        1234

                           for $15 or Pay $20 at the Door.
© 2013 Atlanta REIA, LLC. All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher.                  5
                                                                                                                     Atlanta Real Estate Investors Alliance • FEB 2013

       Fast track to selF-DirecteD ira investing

                                             Learn How to Be a
                                             Blue Collar Genius!
                                             Jim Hitt, CEO of American IRA, LLC

       Blue Collar Genius Defined                                2. Believing or setting limitations.                       If you followed my point here, then you
       A Blue Collar Genius is all of us who                                                                                know that the questions I showed here
       have mastered our craft with hard                         3. Accepting the status quo.                               had nothing to do with ‘cousins’ but
       work, diligence, taking action, creating                                                                             rather were to illustrate my point that
       experience, making mistakes, and most                     4. A lack of awareness of a subject you                    you should not accept the final verdict
       importantly never giving up!                                 want to master.                                         until you are comfortable. Once you
                                                                                                                            get the answers three or four times with
       That’s a blue collar genius by my                         5. Lack of exposure. Learn what you do                     consistency, then you can assume that
       definition. How many times have you                          not know.                                               it’s probably correct. How many times
       said I’m smarter than he is, but he’s                                                                                have you gone to an attorney and one
       driving the big Cadillac and you’re                       6. Not enough research, training, and/                     attorney says one thing, and another
       driving the little economy car? How                          or education.                                           attorney says something else? One CPA
       could that guy ever make any money?                                                                                  says one thing and another CPA says
                                                                 7. Accepting the first answer. Learn to                    something else.
       Perspiration, Inspiration, and Blue                          ask questions to the fifth level.
       Collar Genius’                                                                                                       How are you going to make an informed
       Thomas Edison said “Genius is 90%                         Top Real Estate IRA Investors Ask                          decision until you can get a consensus?
       perspiration and 10% inspiration”.                        Questions to the Fifth Level                               Someday you just have to sit down and
                                                                 1. What is your business relationship?                     say “It’s a business decision and I’m
       The Top Real Estate IRA Investors                            Do you own property and businesses                      going to make it.”
       Know Lack of Knowledge = Fear                                together?
       How many people do you know that                                                                                     For more information, or to explore your
       have been to every seminar, they know                     2. Are you married to your cousin?                         options, call American IRA today at
       more about real estate IRA investing                                                                                 866-7500-IRA (472). We look forward
       than anybody you’ve ever talked to, and                   3. Have you adopted your cousin? You                       to working with you.
       when you ask them “how many deals                            cannot do loans to your children,
       have you done?”, they say “Well, I’m                         your wife or your cousin. I said that                   Comment on this article online at
       still working on my first deal.” You ask,                    on purpose, by the way.                       
       “How long have you been a member of
       the group?” You’re not shocked when                       4. Is the cousin married to your son or
       they respond, “About eight or nine                           daughter?                                                 Jim Hitt
       years, but I’m looking.”                                                                                               800-750-0472
                                                                 5. Is your cousin your guardian of an              
       Knowledge is wonderful, but you have                         IRA beneficiary?
       to actually use it!
                                                                 6. Is your cousin an attorney, CPA                       
       Mistakes the Top Real Estate IRA                             or financial planner who provides                     
       Investors Avoid                                              services to your self-directed IRA and                                Jim Hitt is the Chief Executive
       1. You listen to the wrong people,                           has or does receive compensation?                                     Officer of American IRA, LLC
           starting with your family and close                                                                                            and has been committed to all
           friends. Familiarity breeds contempt                  If a realtor says it’s a great area, go out there                        aspects of investing for more
                                                                                                                              than 30 years, using selfdirected IRAs for his
           or lack of faith. Your family or                      at 6:00 a.m. and find out. Check the crime                   own investments since 1982. Jim’s forte is the
           friends have a different perception                   statistics. Now you’re moving forward.                       financing and acquisition of real estate, private
           of you because they fail to see you                   You will be a blue collar genius. It’s simple                offerings, mortgage lending, businesses, joint
           for what you have become and                          when you know more than other folks you                      ventures, partnerships and limited liability
                                                                                                                              companies using creative techniques.
           remember you from your past.                          have an edge and are an expert.

© 2013 Atlanta REIA, LLC. All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher.                 6
                                                                                                                       Atlanta Real Estate Investors Alliance • FEB 2013

       real estate raW
                                                                                                                                       Atlanta REIA
                                            Getting Started                                                                          Member Benefits
                                            in Multifamily                                                                    • Website, Blog and Member
                                                                                                                                Only Area
                                            Part 1 of a 5 Part Series                                                         • Affordable, High Quality Educational
                                                                                                                                Workshops & Seminars
                                            Bill Ham                                                                          • Fun, Frequent Networking Opportunities
                                                                                                                              • Weekly Special Interest Groups Meet

                                                                                                                                Around Town
                  ave you ever thought about get-                                                                             • Lunch & Learn Subgroup Meetings
                  ting into the multifamily busi-                                                                             • Wine & Dine Subgroup Dinner Meetings
                  ness? It’s not easy and it’s not                                                                            • Atlanta REIA Main Monthly Meeting &
       for everyone, but if you have what it takes                                                                              Vendor Tradeshow
       I can show you how! I created Real Estate                                                                              • Learn From Home on Our Monthly
       Raw to pull back the curtain on the com-                                                                                 Webcast Series
       mercial multifamily business. I have sur-                                                                              • Members Can Watch Webcast Replays
       vived the down turn of the economy and                                                                                   24/7/365 on
       quite frankly I don’t want to go through                                                                               • Atlanta REIA Subchapter Meetings
       that again. Do you?!                                      between 9am-5pm Monday through Fri-                          • Community Outreach Programs
                                                                 day. This is when all the agents, brokers                    • Haves & Wants Speed Marketing Session
       How many real estate seminars have you                    and most sellers are available and you will                    and Weekly Meeting
       sat through to only find that it was one big              need to be too.                                              • Monthly Atlanta REIA “The Profit” Interactive
       SALES PITCH! Starting a business armed                                                                                   eNewsletter
       only with sales pitches is never a good thing.            I understand that this may seem like a lot of                • Weekly Atlanta REIA Email Announcements,
                                                                                                                                Articles & News
       In this 5 part series I will be teaching you              time to someone who has a family and a job
       the “real side” of the real estate business.              and you may not have a ton of time dur-                      • Volunteer Opportunities
                                                                 ing the work week to dedicate to your new                    • Member Discounts on Workshops
       Notice I keep saying real estate “business”?              business. Find it! The one thing I tell my                   • Member Discounts from Local & National
       That is one of the first lessons that most                students is “the closing table doesn’t care…
       people get wrong when starting out in real                you get there or you don’t”. The world is                    • And much, much more!

                                                                                                                                      Atlanta REIA
       estate. Let me clarify this for you.                      full of people who wanted to be success-
                                                                 ful… but just couldn’t make it. That is real
       An investor is someone who is sitting                     estate and this is Real Estate Raw!                                Member Discounts
       around with cash that they need to get a                                                                               • Lowe’s – Save up to 7% to22%
       return on. If you have all the cash you need              The one thing I promise you is the truth                     • Sherwin Williams Paint – Save 30% to 40%
       to buy real estate with…then you are an                   and that I will keep it REAL!
                                                                                                                              • Sherwin William Flooring – Save on
       investor. If you are trying to create wealth                                                                             Carpet, Vinyl, Delivery and Installation
       in real estate (not spend it) then you will               In the next 4 sections I will be teaching                    • Sears Commercial – Save 4%-15% on all
       need to raise money and possibly qualify                  you what to fill those 15 hours a week                         Appliances
       for some loans…you are not an investor,                   with such as how to get deals funded                         • Nu-Set – Save on Locksets, door hardware,
       you are a real estate entrepreneur.                       with creative financing, making creative                       security & lock boxes
                                                                 offers and creating wealth by solving real                   • Build-A-Sign – Save 15% on Signs, Banners,
       I make this distinction because most people               estate problems.                                               and Magnetics and other products and get
       get started in the real estate business with                                                                             Free Delivery on all orders
       the wrong mindset and that leads to early                 Comment on this article online at                            • And much, much more!
       frustration. If you are not already wealthy     
       and looking to put cash into a property for
       a return, then as an entrepreneur you will
       be building a real estate business.                          Bill Ham                                                  Join Atlanta REIA Today!
       Now that we have that clear, you need to                                             Become a Member of Atlanta REIA for
       be prepared for all that being an entrepre-                                                                            as little as $100/year. Businesses can
       neur includes. This will mean hard work,                                         join for as little as $150/year. See our
       work that you won’t always get paid for.                                 Bill Ham has been in real estate for          Membership Application in this issue
       You will need to create about 10-15 hours                                8 years and has created a portfolio           of The Profit or visit...
                                                                                of nearly 400 units in Macon, GA
       a week to begin with. Keep in mind that                                  using creative and seller financing.
       the majority of this time will need to be

© 2013 Atlanta REIA, LLC. All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher.               7
                                                                                                                     Atlanta Real Estate Investors Alliance • FEB 2013

                                               Proving Lender Negligence
                                               and Fraud Part 2: Follow the Money
                                               By Bob Massey

       I    n my last article, I explained that
            there are two approaches investors
            can take to determine whether or
       not a lender has been negligent or com-
       mitted fraud. The first approach I de-
                                                                 with different terms and with a different
                                                                 party than are included on the note and
                                                                 other closing documents. The instruc-
                                                                 tions to the closing agent generally come
                                                                 from a stranger to the transaction, with
                                                                                                                            through credit default swaps.

                                                                                                                            By following the money investigators
                                                                                                                            can spot one falsehood after another
                                                                                                                            showing how the investment banks cov-
       scribed is to look through the paper trail                instructions that any excess payment be                    ered their assets while leaving distressed
       to dig up issues. The second approach is                  refunded to that stranger.                                 homeowners and the original investors
       to follow the money.                                                                                                 to hang out to dry.
                                                                 If the loan originator were the real payee,
       Not many people truly understand how                      then any wiring instructions should include                Combining the method of following the
       the mortgage and finance industries work.                 terms such as “for the benefit of [the name                money with digging up the paper trail be-
       It’s basically a shell game with them mov-                of that payee]”. That rarely happens. The                  hind a mortgage, we now have a way to
       ing money around with little regard as to                 source of funds should also be included in                 force the banks to negotiate on our terms.
       the laws and regulations that govern how                  the pooling and servicing agreement given                  Not only are we able to use this informa-
       banks are supposed to act.                                to the investors of the mortgage-backed                    tion to help underwater homeowners get
                                                                 security pool. That never happens either.                  out from under their homes with no short
       They play this constant game all suppos-                  There is never any reference between the                   sale, no deficiency, and no coming out of
       edly in the name of increasing the money                  money chain that is represented by the                     pocket, but we are able to pick up pretty
       supply. Attorney Neil Garfield describes                  wiring instructions and the documentation                  houses at incredibly low prices.
       the process as the bank starting out with                 chain represented by the note, mortgage
       $100 in the left pocket and taking $10 out                and HUD-1.                                                 For more information on how you can get
       to deposit in the right pocket, but still re-                                                                        involved in helping underwater homeown-
       porting to the SEC and investors that the                 According to Garfield, “It was this split                  ers while doing some awesome deals, give
       full $100 is still in the left pocket. When               between the money trail and the docu-                      my office a call at 706-485-0162.
       the next $10 comes out, described as trad-                ment trail that enabled the banks to create
       ing profits or a fee, the amount in the left              a long term gap during which they could                    Comment on this article online at
       pocket is still reported as $100 rather than              trade ‘ownership’ of the loan before mak-        
       the $80 that is actually there.                           ing any attempt to deliver the loan to the
                                                                 investors who had advanced the funds.”
       This is just an example of how the fi-
       nancial transactions that represent the                   To make matters even more confused,                          Bob Massey
       mortgaging of a home rarely take place                    the pretender lenders hedged insurance                       706-485-0162
       the way the homeowner, or the lender’s                    policies called credit default swaps against       
       investors, think. To really know what                     the potential loss of mortgage income due
       is taking place investigators must follow                 to default. What they failed to reveal to                
       the money, as well as the paper trail. The                investors was that the investment banks                  
       note, mortgage, HUD-1 and other docu-                     themselves were the ones being protected,                               Bob Massey is a recovering
       mentation connected with any given loan                   not the original investors who all had com-                             corporate executive who is
       most likely do not reflect what actually                  mingled funds in undifferentiated pools.                                now living the dream running
                                                                                                                                         his own real successful estate
       happened to the funds. As a result, some                                                                                          investing     business    and
       argue that these documents are null and                   The mortgage losses on the books of the                      teaching others how to do the same.  In
       void. The name of the real funder of the                  banks also caused these same banks to get                    the process he has become the nation’s
       transaction rarely appears on these docu-                 huge federal bailouts even though they                       leading educator on the foreclosure
       ments. The financial transaction occurred                 had already been paid off for their losses                   investing the foreclosure process.

© 2013 Atlanta REIA, LLC. All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher.            8
                                                                                                                     Atlanta Real Estate Investors Alliance • FEB 2013

       there’s an app For that
                                                                                                   Attend Do
                                                                                                  Estate Roc ’s Mobile Real
       CaptureNotes:                                                                                        kstars Gro
                                                                                                       Feb 4th at
                                                                                                                      up on

       Your Life, Color-Coded
       By Don DeRosa

                                          “I’m known for my handwritten notes.” ~ Pamela Anderson

       Y        ou’re driving your Uncle Bugsy
                to the doctor when you spot
                a “for sale by owner” sign in
       front of a nice little brick house. You’re
       already running late, but you’ve been
                                                                 (say, in a seminar, or while you’re inspect-
                                                                 ing a house). And then you can draw or
                                                                 write on the picture. The app also uses
                                                                 searchable, customizable, color-coded flags
                                                                 as reminders (red for “to do,” for example,
                                                                                                                            those pictures to your note, and then circle
                                                                                                                            things on the picture of the house that
                                                                                                                            might be problematic. Go crazy and draw
                                                                                                                            lots of arrows and circles. Then, flag some-
                                                                                                                            thing just for the heck of it. Between the
       watching this house – it’s got a big blue                 or green for “research needed.”). Those                    flags and the ability to write and highlight
       tarp draped over the roof – for a couple                  flags can even be used to tag a specific mo-               in different colors, you’ll have an exciting,
       of months now. You’ve got no pen and                      ment in the audio.                                         dynamic note that’s definitely useful and
       paper, and you won’t have time to stop                                                                               darned near artistic.
       later. Sure, you can snap a picture with                  Second, it allows you to import PDF files
       your cellphone, but you’d really like to                  and use them as templates. This is a great                 And that’s a beautiful thing.
       take some notes, too.                                     way to create standardized forms for spe-
                                                                 cific uses. As an investor, I find that this               Comment on this article online at
       Unfortunately, Uncle Bugsy isn’t known                    kind of streamlining is a big part of my         
       for his patience, so you’re only going to                 success – it allows me to spend more time
       have about a minute before he starts com-                 on buying and selling properties, which is
       plaining about how inconsiderate kids are                 where the money is.
                                                                 Finally, CaptureNotes provides a pretty                      Don DeRosa
       What should you do?                                       painless way to back up your new files,            
                                                                 simply by uploading them to Dropbox                      
       If you have an iPad, the solution is a great              or iTunes.
       little app called CaptureNotes. Capture-                                                                           
       Notes might look like just another note-                  Let me say something here about backing                  
       taking application, but it’s not. Yes, it lets            up your files. If you aren’t already back-                                Don DeRosa was recognized
       you do all the usual note-taking things:                  ing up, please start! I’ve learned the hard                               as one of the nation’s top 21
       create notes, choose the type of paper and                way that it’s not a matter of IF your com-                                real estate investors in the
       ink color, and doodle and scribble on a                   puter is going to crash. It’s a matter of                                 New York Times bestseller
       touch screen. So far, it’s pretty ordinary.               WHEN. And it’s a pretty safe bet that                                     The Millionaire Real Estate
                                                                                                                              Investor. Don, who is a full-time investor,
                                                                 it’ll go dead at the worst possible time.                    trainer, and mentor, is the first to offer his
       But there are three other things Capture-                 Please back it up!                                           complete investing system on a mobile
       Notes does that make it really useful for us                                                                           platform. Don teaches investors how to
       asreal estate investors.                                  So picture it: with the clock ticking (Un-                   Make More and Work Less by being more
                                                                 cle Bugsy is waiting, after all), you start a                efficient, productive and competitive,
                                                                                                                              leveraging mobile technology and apps
       First, it has some pretty sophisticated bells             new notebook. Then you jump out of the                       on the iPad, iPhone, Android and other
       and whistles. You can add photographs                     car and take pictures of the FSBO sign,                      mobile devices.
       andrecord audio while you’re taking notes                 and various shots of the house. Now add

                                                                           Keep up to date with our latest videos
                                                                           by subscribing to our YouTube Channel
© 2013 Atlanta REIA, LLC. All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher.                   9
                                                                                                                     Atlanta Real Estate Investors Alliance • FEB 2013

       Marketing Magic tricks

       Pre-Screening Sellers For Your Real
       Estate Investing Business – Part 2
       By Kathy Kennebrook, The Marketing Magic Lady

       B       y remembering just a few basics,
               you, as a Real Estate Investor, can
               quickly determine whether or not
       a seller is motivated to sell their prop-
       erty. First of all, a motivated seller will
                                                                 seller? First of all, don’t be afraid to ask
                                                                 questions. This is a basic truth in the real
                                                                 estate investing business. The more will-
                                                                 ing a seller is to answer whatever ques-
                                                                 tions you ask, the more motivated they
                                                                                                                            owner is simply willing to deed you the
                                                                                                                            property for the balance of the mortgage
                                                                                                                            and walk away. As a seasoned Real Es-
                                                                                                                            tate Investor, I can personally tell you
                                                                                                                            this absolutely happens. So don’t be
       ask questions like “how soon can you                      are. Never be afraid to ask “Is that the                   afraid to ask the question “Are you will-
       buy my house?” or “How can you help                       least you would take?” You might be re-                    ing to sell for what you owe?” If they say
       me get out of this situation?” or “How                    ally surprised at the answer to this ques-                 yes, you are dealing with a motivated
       soon can you get here?” An experienced                    tion, especially if you are dealing with a                 seller who is likely to deed you the prop-
       Real Estate Investor knows these are re-                  motivated seller.                                          erty for the balance of their mortgage,
       ally good questions for a seller to ask.                                                                             which not only will lead to a good profit
                                                                 For example, I recently worked with
       There are two types of houses we are go-                  a seller who was asking $205,000 for
       ing to buy, either pretty houses or ugly                  a property in good condition worth
       houses and there are motivated sellers in                 $275,000. This seller was already mo-
       both of these categories. When you are                    tivated, but I ended up paying only
       marketing to sellers, there are certain                   $180,000 for this property simply be-
       types of sellers who are much more likely                 cause she asked if they would accept a
       to have a house they need to sell.                        lower price. So be willing to ask ques-
                                                                 tions and know that the more willing a
       For example, I personally like working                    seller is to answer them, the better deal
       with out of state owners (folks who own                   you will make. This is going to be very                        Domain Names for just

       a property where you live but don’t live                  crucial to the success of your real estate
       there full time), heirs, divorces, vacant                 investing business and the amount of                                                              *
       houses, estate and probate properties,                    profit you make on your deals.
       military transfers and pre-foreclosures.                                                                                       for first year with new,
       These sellers are much more likely to                     Another basic truth is that the more                                 non-domain purchase.
       have a house they need to sell “right                     equity there is in a property, the bet-              
       now” and that’s the kind of seller you                    ter a deal you are likely to make, espe-                                   • Domain Names
       want to work with. As a Real Estate In-                   cially if the house needs repairs. Usually                            • Web & Wordpress Hosting
       vestor, you may also run into landlords                   if there is a lot of equity and the sellers                          • Email & Exchange Accounts
       who are fed up with tenants ruining                       have owned the home for a long time or                                     • SSL Certificates
       their properties over and over. These                     if they have just inherited it, the more                                   • Marketing Tools
       are all good sources of motivated sellers.                likely they are to let you have a large                                   • and much more!
       Most of these sellers are folks who don’t                 chunk of that equity for your profit.
                                                                                                                                    *Certain terms and conditions do apply.
       live in these properties.                                                                                                            See website for details.
                                                                 If there is very little equity in the prop-
       Okay, so how are you, the Real Estate                     erty, you are much less likely to be able
       Investor, going to identify a motivated                   to create a good deal unless the property

                          Keep up to date with our latest opportunities by joining us on Twitter

© 2013 Atlanta REIA, LLC. All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher.                10
                                                                                                                      Atlanta Real Estate Investors Alliance • FEB 2013

       for you, but you don’t have to worry                      Just remember this, the seller is either
       about where the money is coming from                      in or they are out, don’t waste your time
       to fund your deal.                                        chasing dead deals. If you follow this
                                                                 simple rule, you will make a lot of mon-
       Another truth is that the uglier the                      ey in your real estate investing business.
       house, the more motivated the seller is
       likely to be. If you aren’t getting your                  For more information on pre-screening
       offers accepted on ugly houses that you                   sellers, locating motivated sellers and
       can quickly wholesale, you aren’t target-                 buyers and exit strategies, visit Kathy
       ing the right kind of junker properties.                  Kennebrook’s website at
       Ask any Real Estate Investor who has            
       been in the business for awhile and they
       will tell you there is a fortune to be made               Comment on this article online at
       in ugly houses. The more difficult it is        
       to find this type of seller, the better deal
       you are going to make.

       Another situation that arises fairly often
       in today’s market and creates motivated
       sellers is a simple one for you to spot.
       If a seller is behind on payments, this is                  Kathy Kennebrook
       definitely going to be a motivated seller.                  941-792-5390
       If a motivated seller is behind on pay-           

       ments and they have a lot of equity, this
       is an opportunity for you to make a re-
       ally good deal. You as a Real Estate In-               
       vestor just have to learn to use a script                              Kathy Kennebrook is a speaker,
       to ask the right questions to determine                                author and has been actively
                                                                              investing in real estate since 1999,
       if a seller is motivated and what kind of                              Kathy currently resides in Bradenton,
       deal you are going to make with them.                                  FL and is known as the Marketing

       It’s not magic; it just takes a little nego-                Magic Lady because she is the country’s
       tiation and a few questions to pre-screen                   leading real estate marketing expert on finding
                                                                   motivated sellers using direct mail.
       sellers and create some really good deals.

                                                                                                                               LIVE ANSWERING SERVICE
                                                                                                                                   + Voicemail
                                                       Keep up to date with our latest                                           + Virtual Faxing
                                                        videos by subscribing to our                                          + 24-7 Live Operators
                                                             YouTube Channel                                                  + Online Management


                                                                                                                                    per month


           Join us for Education & networking at the                                                                                Be sure to ask for the
           Meeting-Before-the-Meeting each month!                                                                                      REIA discount.
                                                                                                                                     Or visit us on the web at
            We meet at the Total Wine & More located at 124 Perimeter Center W
               in Atlanta at 3:00pm before our Atlanta REIA Main Meeting.                                           

© 2013 Atlanta REIA, LLC. All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher.          11
                                                                                                                     Atlanta Real Estate Investors Alliance • FEB 2013

        continued from page 1                                    friend and fellow investor. I put up the                   down to $895 lowered our purchase
       housing. Second, there’s not much                         deal and the purchase money. Houston                       price from $5,500 down to $3,895 and
       competition. Folks wanting to buy a                       agreed to be responsible for the rehab,                    increased our yield from 39% up to
       trailer are forced to pay all cash – cash                 marketing and selling. After I’ve been                     50.38%!
       they don’t have – because banks won’t                     repaid my purchase money, we will split
                                                                 all profits 50-50.                                         Over the years, Kim and I have done a
       lend on used mobile homes in a park.                                                                                 wide variety of creative deal structures.
       At the same time, very few sellers offer                  The trailer is a nice three-bedroom, two-                  Our favorite – and it happens to offer the
       owner financing. If you buy for cash and                  bath doublewide in a park in Acworth,                      highest yields – is Lonnie Deals.
       then sell on time, you’re offering a very                 Georgia. The seller was asking $12,000.
       unique – and profitable – service. Third,                 She agreed to our $5,500 offer that                        Comment on this article online at
       every month you receive mailbox money                     included the following purchase terms:           
       that is taxed as portfolio income – which                 We’d give her $3,000 cash down if
       means these earnings aren’t getting hit                   she’d accept an unsecured note for the
       with Social Security or Medicare Taxes.                   $2,500 balance with payments of $100
       There are also a couple of disadvantages.                 per month at 0% interest for 25 months.
       First, you must remember that park                        A few weeks later, Houston sold this
       owners are all-powerful. Don’t do a                       home with owner financing for $17,500                        Bill Cook
       deal in a park unless you and the park                    with the following sale terms: $2,000                        727-420-4810
       owner have a clear meeting of the minds.                  down, payments of $250 per month at                
       Second, some of the buyers you work with                  14% interest for 114 months.
       can be pretty interesting. It’s shocking                                                                           
       how many are 100% healthy but still                       Including our expenses (about $2000),                        Bill Cook is a full-time real estate investor, speaker
                                                                                                                              and author. He specializes in single-family
       get monthly disability checks. These are                  our yield on this deal was 39%. When                         homes and mobile home parks. Bill believes
       your tax dollars at work, folks!                          it came time to make our first $100                                     that real estate investing, especially
                                                                 monthly payment to the seller, we                                       the act of buying and holding rental
                                                                                                                                         property, is the surest way to financial
       A few weeks back, I partnered with                        offered her $895 cash in exchange for                                   independence and wealth. Bill and his
       my buddy Houston Long on my most                          our $2,500 note. She quickly accepted                                   wife Kim run North Georgia REIA where
                                                                                                                              they teach others how to successfully invest in
       recent Lonnie Deal. He is a long-time                     our offer. Shorting our note from $2,500                     real estate.

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                                               Here and Get Not
                  Mutiple Sizes Available.

                  Sign up now and get your ad created by our design specialists for FREE!
                  This introductory special is available for a limited time only.
                  If you are ready to get started, see our Advertising Rates in this issue.
                  Then call Christine Griffin at 678-701-7160
                  or email

© 2013 Atlanta REIA, LLC. All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher.                      12
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                                                                                                                     Atlanta Real Estate Investors Alliance • FEB 2013

       Foreclosures gone WilD

                                     Short Sales Are Sailing
                                     By Kimberlee Frank

       M          any Investors and Realtors
                  avoid short sales like the
                  plague. They are definitely
       missing the boat! My business special-
       izes primarily in short sales and I have
                                                                 don’t like the fact that they are tracking
                                                                 our information. Nationstar has taken
                                                                 the collection of Buyer’s information to a
                                                                 whole new level. They require all Buyers
                                                                 to fill out a loan application even though
                                                                                                                            even though they fully disclosed to Wells
                                                                                                                            Fargo their intention to buy, resell and/or
                                                                                                                            fix the property, if they used my paper-
                                                                                                                            work. Many short sales were not approved
                                                                                                                            at that time and many Investors had no
       seen an increase in the number of ap-                     they most likely will not be using Nation-                 idea WHY? Some of the lenders frown on
       provals we are getting. The time line for                 star as a lender. This application has been                the fact that Investors are purchasing the
       a short sale varies from 90 to 120 days                   mandatory and this has not been waived                     property and would rather sell the house
       if you submit the lender a “complete”                     on any of my files. If you are a Buyer on                  to a homeowner.
       short sale package. Since short sales are                 any property, you are required to provide
       dominating the market, the Lenders are                    your name, address, telephone number,                      You would think that the lenders, since
       creating more streamlined processes to                    DOB, SS#, assets, employment history                       they are funded by Investors, would un-
       conduct smoother short sales. If you do                   and more. This is regardless if you are                    derstand how we Investors work. We
       short sales, then I am quite sure you have                purchasing for investment or personal use                  don’t buy properties at full value, as we
       heard of the online system called “Equa-                  and if you are getting a mortgage or pay-                  are not going to live in the home. This is
       tor.” Equator allows all of the short sale                ing cash.                                                  a business and we can’t make the Seller’s
       paperwork to be processed electronically                                                                             problem our problem by paying full value.
       through one common venue, versus tra-                     I believe that the lenders are collecting                  It is the Investors, like us, that are helping
       ditional and random faxes and emails.                     data against all Buyers and will soon share                the lenders get money and not go under.
       Having a file processed online avoids the                 with each other how many deals each
       common objection from the short sale                      Buyer has purchased. I had one student                     Now is the time to purchase short sales and
       lender of “We didn’t receive the docu-                    inform me that once he purchased over 10                   if you haven’t started you have 10 years to
       ments.” Effective January 1, 2013, the                    properties from Bank of America, he was                    ride the wave, so do it now! Align yourself
       newest lender that has started to use                     no longer allowed to purchase any more                     with a good Mentor and take flight just
       Equator is Chase. The following lenders                   in his name, his wife’s name or company                    like many Investors around the world.
       and servicers are presently using Equa-                   name. Therefore in the future, when all
       tor: 1) Bank of America, 2) Chase, 3)                     lenders work as a team, they will share all                Happy Sailing!
       Wells Fargo, 4) GMAC, 5) Nationstar,                      of this information and limit the amount of
       6) ASC, 7) Carrington Mortgage, and 8)                    deals that an Investor can purchase. Wells                 Comment on this article online at
       Homeward Residential Services.                            Fargo started using a system called Core-        
                                                                 Logic approximately 2 years ago which al-
       The Equator System assigns applicable                     lows them to simultaneously check to see                     Kimberlee Frank
       tasks to each party (Agent, Negotiator,                   who was applying for a mortgage at the
       Closer, etc) including a deadline in which                same time they were conducting a short                       407-888-3255
       to complete each task. I like the fact that               sale. This caused Investors a hardship             
       the lenders can no longer say “Oh, we                                                                              
       never got that paperwork.” However, I
                                       Join us at the                                                                     

            Haves & Wants Meeting
                                                                                                                                          Kimberlee Frank is a Master
                                                                                                                                          Negotiator who has closed over
                                                                                                                                          600 deals since 1998. She is a

                        Every Thursday at 1:30pm                                                                                          Mentor, Trainer, Author and Real
                                                                                                                                          Estate Broker teaching Investors
                                                                                                                              and Realtors how to creatively purchase and
                   @ 5 Seasons Brewing located at                                                                             sell short sales with her Step-by-Step System.
            5600 Roswell Rd in Sandy Springs at the Prado.                                         PRAdO                      She has helped Investors and Realtors earn
                                                                                                                              hundreds of thousands of dollars.

© 2013 Atlanta REIA, LLC. All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher.              14
                                                                                                                     Atlanta Real Estate Investors Alliance • FEB 2013

       the QuickBooks Quickie

                        How Do I Handle a Refundable
                        Security Deposit in QuickBooks?
                        By Karen Bershad, The Small Business Advisor

      I   t is the goal of this column to an-
          swer questions about QuickBooks
          and how it is used in the REI arena.
      Know how to record transactions in the
      proper way and have your set of books
                                                                 A: The Chart of Accounts is the main
                                                                 driver of the program. If you have you
                                                                 accounts set up properly your reports –
                                                                 Income Statement and Balance Sheet
                                                                 – will be reflected properly. You may
                                                                                                                            it to that account. When it is time to
                                                                                                                            pay the tenant the money back, less any
                                                                                                                            damages if need be, you will write the
                                                                                                                            check out and expense it also to this Li-
                                                                                                                            ability account to clear the money from
      in good shape when it comes time for                       want sub accounts for some of your ex-                     the account.
      taxes. It is our intention to do this by                   penses in particular to be able to see
      you the members submitting questions                       where certain money is being spent. For                    Comment on this article online at
      to,                         instance – if you make sub accounts for          
      and getting answers here in this column.                   Auto Expenses – Fuel, Repairs & Maint,
                                                                 Tags, Tolls & Parking, Insurance, etc. –
      Q: I am having difficulty reconciling my bank              you then can see that the total amount
      account. I have reviewed each entry and have               spent in that areas was not just Fuel,
                                                                                                                              Karen Bershad
      found that several of my deposits do not match             which is expensive but you had a major                       (770) 356-1234
      the amount the bank has for them. How do I                 repair done and therefore your compari-            
      see all my detail on each deposit without click-           son to last year for the same time makes
      ing on each one to open it?                                more sense.                                             
                                                                                                                                           Karen Bershad is “The
      A: Go to Reports – Banking – and look                      Q: I received a “Refundable Security Depos-                               Small     Business     Advisor”.
      for a report called “Deposit Detail”. It                   it” from my tenant. How do I enter this into                              Most small business owners
      will give you line-by-line detail of your                                                                                            have a challenge handling
                                                                 QuickBooks?                                                               all the different areas of
      deposits in one report and you can com-
      pare that to what you have in the bank.                    A: This is a Liability account that you                      running a business. The accounting can
                                                                                                                              be a challenge, particularly if the software
      If you make copies of the checks for each                  will need to payout at some later date. In                   seems overwhelming. The Small Business
      deposit and put it with your deposit                       your chart of accounts you should have a                     Advisor is what you may need to get you to
      ticket on each one, that will give you a                   Liability account set up for Security De-                    the next level of your business. We work at
      paper back up of what you actually gave                    posits Escrow – or some name that sets                       your office or provide off site assistance in
      the bank. This way if the bank made the                    it apart from security deposits you paid                     getting things under control by providing a
      error then you have details of what you                    that are owed back to you (which is an                       wide variety of services that are specifically
                                                                                                                              for the small business.
      produced to the bank.                                      Asset). In the deposit window, instead
                                                                 of showing this as income you should go
      Q: Why do I need to create sub accounts in my              to this special Liability account and book
      chart of accounts?

           Advertise Your
           Business in The Profit
            If you’re looking to reach the Real Estate Industry here in the Greater Atlanta Metro Area and throughout Georgia,
            you can’t do better than The PROFIT. Your ad will reach more than 10,000 each month with your message. Our
            production teams are among some of the best designers in the country. We make you look GOOD!

            When you’re ready to get started, see our Advertising Rates in this issue and
            then call Christine Griffin at 678-701-7160 or email

© 2013 Atlanta REIA, LLC. All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher.              15
   American IRA Wants to
  be a Value Added Service
  to You or Your Business!

P We do business the old fashioned way.             P We provide joint webinars which allows you to
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                                                                                                                     Atlanta Real Estate Investors Alliance • FEB 2013

       Business By the Book

                                          Greed In Business =
                                          Trouble In The Family!
                                          By Erven Kimble

      “Greedy people bring trouble to their families, but the person who can’t be paid to do wrong will live.”
                                               (Pr 15:27)(NCV)

       T         he relentless drive to acquire the
                 elusive “American Dream”, is
                 what fuels many business profes-
       sionals. To many, in pursuit of the world’s
       definition of success, means “getting more
                                                                 actions and the decisions that we make at
                                                                 the office effects what happens at home.
                                                                 Whether a person realizes it or not, deci-
                                                                 sions and practices in the work place have
                                                                 a direct impact on what happens back on
                                                                                                                            words, the children of ethical parents are
                                                                                                                            the recipients of the divine favor of God.
                                                                                                                            The family traits model behavior that is
                                                                                                                            mimicked by the children, and ultimately
                                                                                                                            the advantages or the hazards are experi-
       and more”, “climbing the corporate ladder                 the home front.                                            enced by the next generation. When there
       at all cost”, or perhaps it means “the end                                                                           are models of godly parents who live out
       justifies the means, no matter what!” This                The relentless drive to get more and more                  their Christian beliefs, the children are
       kind of ill-advised pursuit requires that a               in the workplace is called “Greed”. Greed                  challenged to become wise themselves.
       person disconnect other areas of life that                is flaw that ultimately brings distrust and
       makes significant demands on their time                   dishonor to all those involved. A person in                            Thoughts to Ponder
       and attention. One way to separate these                  pursuit of unmerited gain is a continuous
       distractions is to departmentalize them.                  source of grief for themselves, as well as                 I.      Have you ever considered your
                                                                 their families. Greed and covetousness leads                       business decisions would directly
       Highly motivated entrepreneur and busi-                   men and women to habitually want more                              impact your family?
       ness professionals often compartmentalize                 than their share. As a results, the progres-
       their professional interests from the rest                sive overflow of greed leads to bribes and                 II. What legacy are you preparing to
       of their personal lives. Many “go-getters”                the kickbacks. Bribes and kickbacks are a                      leave your children or family?
       tend to divide their lives into these differ-             perversion of justice, a misrepresentation
       ent compartments and make decisions as                    that ultimately breeds distrust and dishon-                III. Have you considered the long term
       if they are not interconnected. For many,                 or to all those that are involved including                     generational effect of your business
       their thoughts about church, religion,                    all family members who bear their name.                         practices?
       matters concerning God and the Bible, or                                                   Those who
       even their family, have little or nothing to             ... God does not view refuse to be                          Comment on this article online at
       do with their day-to-day business decisions              our lives as being                involved        
       and activities that are required to be suc-              compartmentalized... in these
       cessful. They rationalize that these differ-                                               ungodly                     Erven Kimble
       ent compartments neatly and separately                                                     practices
       co-exist. For instance, one might;                        will find longevity and prosperity.                          404-606-8909
       •    Define things as being secular versus                There is energizing freedom and great                    
            spiritual;                                           gratification in honesty that translates into            
                                                                 the idea of establishing a legacy. Business-                            Erven Kimble is an accomplished
       •    Make clear distinctions between that                 men and businesswomen that strive to                                    pastor, teacher, author, community
            which is personal as opposed to the                  operate an honest business not only live                                leader, licensed Christian Counselor
                                                                                                                                         and Real Estate entrepreneur. Erven
            professional matters;                                well themselves, they also leave a proud                                is a visionary that has faithfully
                                                                 heritage to their children. Conversely, the                  served as the Senior Pastor of a local church in
       •    Or draw a big distinction between                    foolish and fraudulent leave an inheritance                  Lilburn, Georgia for twenty years.
            their family life and their business life.           of misery.                                                   The author searched the Book of Proverbs and
                                                                                                                              Psalms and extracted wisdom that reference
       The truth of the matter is that God does                   “The good people who live honest lives will be a            business and finances to produce the series
                                                                                                                              of articles called Business By The Book. The
       not view our lives as being compartmen-                     blessing to their children.” (Pr 20:7)(NCV)                purpose of these articles is to present time
       talized. A Biblical view sees the secular as                                                                           tested and proven Biblical principles in a way
       spiritual and our professional and personal               A family’s religious passion will produce                    that is practical, relevant and beneficial to the
                                                                                                                              average business person.
       lives co-existing in the same space. The                  the family’s long-term qualities. In other

© 2013 Atlanta REIA, LLC. All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher.                 17
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                                                                                                                     Atlanta Real Estate Investors Alliance • FEB 2013

       real estate legal report

       Caution Landlords: Accepting Money After
       Filing An Eviction Impacts Your Rights
       By Attorney Jon David W. Huffman

       L      andlords often have mixed emo-
              tions when their tenants call and
              offer them money after a dispos-
       sessory warrant (an eviction) has been
       filed. On one hand, landlords are in the
                                                                 ant. It does not matter when the partial
                                                                 payment is made – whether one hour after
                                                                 the eviction is filed or five minutes before
                                                                 the eviction trial. Thus the landlord must
                                                                 either reject the partial payment or, if ac-
                                                                                                                            It does not constitute advertising or solicitation.
                                                                                                                            The information in this article may or may not
                                                                                                                            reflect the most current legal developments; ac-
                                                                                                                            cordingly, this article is not guaranteed to be
                                                                                                                            complete, and should not be considered an indi-
       business of collecting rent. However,                     cepted, he must restart the eviction process.              cation of future results.
       they worry how it may affect moving
       forward with the eviction. Accepting a                          Commercial Landlords                                 Comment on this article online at
       payment after an eviction is filed does af-                                                                
       fect your rights.                                         Perhaps unsurprisingly, the law on “non-
                                                                 residential” or commercial leases allows                   1
                                                                                                                              O.C.G.A. § 44-7-52(a).2 Id. 3 Id.4 Gay v.
             Residential Landlords                               more freedom to contract.                                  American Oil Co., 115 Ga. App. 18, 153 S. E. 2d
                                                                                                                            612 (1967).
       A residential landlord has a duty to ac-                  A commercial tenant’s right to tender past                 2
       cept a payment from a tenant who is in                    due rent and the dispossessory fee can be                  3
       default if and only if the tenant tenders                 contractually waived.5 Indeed, in many                     4
                                                                                                                              Gay v. American Oil Co., 115 Ga. App. 18, 153 S.
       “all rents allegedly owed plus the cost of                commercial real estate leases, this right is               E. 2d 612 (1967).
       the [eviction].”1 However, the tenant can-                waived. All commercial landlords should                    5
                                                                                                                              Hardwick v. 3379 Peachtree, 184 Ga. App. 822,
       not wait until the last moment to do this.                have an attorney review their lease to en-                 824, 363 S.E.2d 31 (1987).
       They must tender the full payment within                  sure that they have the right to regain
       seven days of the day they were served the                possession of their property upon default
       eviction paperwork.2 There is no need to                  without giving a tenant the right to pay
       worry about a tenant doing this perpetu-                  the past due rent and dispossessory fees.
       ally because a landlord is only obligated to
       accept this type of payment once per year.3               Following the freedom-to-contract prin-                      Jon David Huffman
       Making this payment provides a complete                   ciple, a commercial landlord can accept a                    404-373-4008 x 304
       defense to the eviction and, upon receipt, a              partial payment without waiving his rights
       landlord should dismiss the eviction.                     to evict. Under O.C.G.A. § 44-7-52(c), a           
                                                                 commercial landlord is free to take a par-               
       If a residential tenant offers a partial pay-             tial payment and continue the eviction                   
       ment, however, BEWARE! A residential                      process unhindered. Of course, any money
                                                                                                                                        Jon David Huffman is a litigation
       landlord who accepts a partial payment                    received would offset the landlord’s dam-                              attorney specializing in real estate
       from a tenant after an eviction has been                  ages. So commercial landlords, cash that                               disputes, business disputes and
       filed waives his right to continue with the               check and keep on going!                                               commercial collections.        With
       eviction and admits the continuance of the                                                                             more than a decade of experience managing
                                                                                                                              small businesses before attending Emory
       lease.4 In simple terms, the eviction fails               Disclaimer: The information contained in this                Law School, he brings a business owner’s
       and the landlord must start the eviction                  article is for informational purposes only and is            perspective to the practice of law.
       process over if he wishes to evict the ten-               not legal advice or a substitute for legal counsel.

                                             Join us on Meetup and RSVP for the meetings you
                                                             will be attending.

© 2013 Atlanta REIA, LLC. All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher.                 19
                                                                                                                     Atlanta Real Estate Investors Alliance • FEB 2013

       FroM contract to closing

                                      New Territories
                                      By Michael Vazquez

       W             ith each New Year comes
                     new ventures. More and
                     more often investors have
       to expand their investment territories in
       order to stay active. As technology con-
                                                                 You may be marketing a property that you
                                                                 would normally not market. Even worse,
                                                                 you may end up selling a property that you
                                                                 would not have sold if you knew the market
                                                                 better. Investors will typically follow you
       tinues to make the world a smaller place                  into another state/country if you have been
       many investors are also looking at invest-                part of their success in their local market.
       ing in different states and some in differ-               Investors should do their own due diligence
       ent countries. By doing this the amount                   but you should do your own before even
       of inventory increases dramatically if you                marketing that deal otherwise you will lose
       make the right contacts. At the same time                 credibility. You may not only lose credibil-
       if you work with investors that are open in               ity in the new market but also in your local
       investing out of state or in different coun-              market. You can also lose money that you                            Solutions that help
       tries you have the ability to sell more.                  have out for a due diligence period and/or
                                                                 earnest money if you discover that you con-                          you Make More.
       With all this said it is not always as easy as
       it may sound whether you are the buyer or
                                                                 tracted a dud. Remember the importance
                                                                 of closing once you have a contract in place.
                                                                                                                                         Work Less.
       seller. As the buyer you need to make a trip
       to the new area you are looking to invest in.             Before venturing into a new market make                        Use your iPad, iPhone,
       The reason to do this is obviously to learn               sure you at least make the contacts men-                       or other mobile device,
       the market but secondly to make a few key                 tioned above. Let them know your inten-                        anywhere, to…
       contacts in the area. The main contacts you               tions of investing and/or selling in their
       need to make are a few wholesalers, real                  area soon but are currently familiarizing                      H Find comps and
       estate agents, contractors, a title company,              yourself with the market. This will prevent                      rental rates
       and property management if you are look-                  them from thinking of you as just another
                                                                                                                                H Sign and send contracts
       ing for rentals. Not only will these contacts             window shopper. Remember that if you
       help you in their area of specialty but they              create a win-win-win situation your success                    H Plan your entire rehab
       can also be go-to people for a second opinion             will continue to grow.                                         H and so much more!
       on any potential deals. In order for this to be
       a win-win situation you want to use these                 Comment on this article online at
       contacts’ services. For example, if you ask a                                     Check it out noW!
       contractor to verify repair cost on a home
       you should use him/her for that project.                    Michael Vazquez
                                                                                                                                5 Day Trial for only $1
       The suggestions mentioned above also ap-                    678-951-9222
       ply to those looking to sell properties out-      
                                                                                                                                      Make More. Work Less.
       side their local area of expertise. If you are                        Michael Vazquez has been                                               Go To:
       teaming up with a local in a new area make                            offering properties to real                  
       sure you are working with someone that                                estate investors significantly
       can answer questions experienced investors                            below market value since
       will need answered. Keep in mind that just                            2006 in both Texas and Georgia.
                                                                   Michael is always looking to for more
       because someone tells you a property is a                   investors to work with. 
       good deal to invest in does not mean it is.

                                 Keep up to date with our latest
                                 opportunities by joining us on Twitter at

© 2013 Atlanta REIA, LLC. All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher.                 20
                                                                                                                     Atlanta Real Estate Investors Alliance • FEB 2013

       hoW to Be a real estate investor

                                      2013: A Year of Achieving                                                                            Attend Ru
                                                                                                                                            Deal Struc Creative
                                                                                                                                              Feb 9th at g on
                                      Your Goals with PAC                                                                                                7PM!

                                      By Russ Hiner

       E      very New Year’s Day, people
              consider what they want to ac-
              complish in the following year.
       Well, we are now 30 days into 2013,
       and I am sure that you have reflected on
                                                                 Planning means success. Planning
                                                                 means that you will be prepared to react
                                                                 logically. You will be able to carefully
                                                                                                                            we follow the steps and make adjustments.

                                                                                                                                    Accountability and
       2012. What resolutions did you follow                     consider the market, environment, re-                      Do you make time for your success, or
       to success? What results have you seen                    lationships, and finances. Planning sets                   do you need support to be consistently
       from last year’s work?                                    you up for control of your own success.                    accountable to your goals, your plan,
                                                                                                                            and yourself?
       At the beginning of 2013, I reflected                     Because I’ve been in this business for so
       on what I considered success. Like                        long, one of the many things I can tell                    This is where I come in. I can coach you
       many of you, I realized that I want                       you is an easy way to plan-- measure                       with your plan, accountability, and con-
       to improve my monetary, financial,                        what you are doing. Here is how:                           sistency: PAC.
       relationship and problem-solving skills
       because these lead us to success. What                    •     Graph your numbers once a week.                      I’d like to share some of my action steps
       is success in 2013? ACHIEVING                                                                                        for 2013—these are examples of action
       MORE OF YOUR GOALS.                                       •     Reflect on your graph—Are your ef-                   steps that, as your coach, I can help you
                                                                       forts showing success?                               to create, plan, and execute. As your
       We all know that success in our busi-                                                                                coach, I can help you increase your ex-
       ness means learning new tricks,                                 -     If not, change your strategy.                  pertise with goals like these by helping
       tips, and techniques. We must                                                                                        you to use the PAC principles.
       accumulate knowledge and power.                                 -     If so, reflect on what you have
       We must achieve a superior capacity                                   done, and decide how to do it                  1. Increase my profitability by using
       to think and act effectively through                                  even better.                                      my resources effectively and ef-
       presentations, best practices, and                                                                                      ficiently. Example: Limit events,
       strong strategies. We must have                           For example, wanting to earn $200,000                         tasks, and time with people, which
       a highly competitive advantage: a                         a year is my goal/desired outcome. To                         don’t align with my goals or which
       platinum value. But how do we                             do this, I will work backwards from the                       can’t be satisfied.
       strengthen the skills that we                             goal to the actual steps and processes
       MUST have?                                                needed to allow me to achieve the goals.                   2. Create systems, situations, and op-
                                                                 These steps are the action plan.                              portunities to meet and present to
       The ONLY way to achieve this is                                                                                         qualified customers. Goal: Meet
       through what I call PAC: Planning,                        ONLY when we know our goals can we                            new customers 20% of the time.
       Accountability, and Consistency.                          outline the steps to get there. Only then can
                                                                                                                            3. Focus 100% on my emotional,
                                                                                                                               physical, and mental focus. What
                                                                                                                               can I do?

                                     Join us for                                                                            4. Debrief after events to increase my

            LATE nITE nETWoRKInG                                                                                               expertise.

            at the Meeting-After-the-Meeting                                                                                Consistent effort, energy, time, use of
                                                                                                                            resources, and learning will allow me to
             We meet at the Tilted Kilt Perimeter located                                                                   achieve my goals. It will help you too—
             1155-B Mount Vernon Highway in Atlanta                                                                         if you apply PAC.
             right after our Atlanta REIA Main Meeting.
                                                                                                                            With PAC and my assistance, you can
                                   PERIMETER                                                                                eliminate sabotaging behaviors and be-
                                                                                                                                               continued on page 23

© 2013 Atlanta REIA, LLC. All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher.         21
                                                                                                                     Atlanta Real Estate Investors Alliance • FEB 2013

       pearls oF WisDoM

       The Best Deals To Do in Real Estate
       in 2013 & Beyond! – Part 2
       By Tony Pearl

       W             elcome back! If you read
                     Part One of this article, you
                     know that we covered the
       other different types of popular real es-
       tate deals that most people do, and the
                                                                 that there is NO money to be made on
                                                                 this deal, obviously.

                                                                 So, at a glance, it looks like this:
                                                                                                                            lem & they love you for it. You then went
                                                                                                                            & found a tenant buyer who couldn’t buy
                                                                                                                            a house now if their life depended on it (in
                                                                                                                            most cases), and gave them an honest op-
                                                                                                                            portunity to eventually buy this beautiful
       biggest problems with them these days.                    ARV: $250k                                                 house in a beautiful neighborhood… even
       Then we talked about how advantageous                     OWE: $260k, PAYMENT: $1,550 P.I.T.I.,                      if their credit is terrible.
       it is to do the new type of deals: Whole-                      current.
       saling Pretty Houses!                                     REPAIRS: $0                                                (NOTE: The worse their credit is,
                                                                 ASKING: $0, Just wants out (for what-                      the more you should collect as a downpay-
       But we still have a few important things                          ever reason, e.g. job x-fer/                       ment! )
       to cover, so let’s pick up where we                               loss, divorce, etc.)
       left off…                                                                                                            After that, the tenant-buyer should
                                                                 So you SELL the house on a Lease Purchase                  just make the monthly mortgage pay-
       Once you agree on the deal & terms with                   (aka ‘Rent to Own’) to a tenant buyer who                  ments, as rent. There are a few options
       the seller, you get all the paperwork                     falls in love with the house, has at least                 on how they can do this: 1. Pay directly to
       signed & closed at either a title compa-                  $5,000 to put down as Non-Refundable                       the seller; 2. Pay directly to the mortgage
       ny or attorney’s office. No exceptions.                   Option Consideration, and can easily af-                   company; 3. Pay to a 3rd-party payment/
       You’ll want that legal backup in case                     ford the $1,550 monthly payments (plus                     escrow company. I highly suggest doing
       the seller conveniently forgets what they                 utilities, HOA, etc., obviously).                          the 3rd, so everyone can be sure the pay-
       agreed to later.                                                                                                     ments are made on time. There are several
                                                                 You arrange the closing at the title compa-                companies that will provide this service for
       So now you’ve got a deal under contract                   ny/attorney’s office (have the tenant buyer                you, for a nominal fee, ranging from $5 to
       & all the paperwork signed. What now?                     pay their fee), and collect your check.                    $50/mo. Check around for more informa-
       Simple. You get it ‘sold’ as an oppor-                                                                               tion on that.
       tunity to a tenant buyer who: 1. Has                        …AND YOU’RE DONE!! You
       a decent chunk of money to put down                        are OUT of the deal from this                             So here’s the next big question: WHY
       (typically $5,000+/minimum), and 2.                              point forward!                                      would YOU, as the investor, want to be
       Can afford the existing monthly mort-                                                                                DONE with the deal after that? Why
       gage payments.                                            So what just happened? And why would                       wouldn’t you want to get the deed or stay
                                                                 you WANT to be OUT of the deal                             in the deal??
       For example, let’s say you have a house                   after that?
       worth $250,000. The seller owes                                                                                      Here’s the answer: You WOULD want
       $260,000, with monthly PITI payments                      Good question. Let’s recap, shall we?                      to stay in the deal (and maybe get the
       of $1,550 & they’re current. The house                                                                               deed)… IF!
       needs little to no repair & is in a great                 You found & negotiated a deal on a house
       neighborhood where people want to live.                   with little to no equity that no one else                  IF the seller has equity. IF the house is go-
       The seller just wants to walk & realizes                  would touch. You solved the seller’s prob-                 ing UP in value. Or IF the mortgage pay-

                                              North GeorGia reia MoNthly MeetiNG
NGaREIA                                                   2nd Thursday of Each Month at 7:00 PM
                                                                 at the Hilton Garden Inn,
                                                                      Cartersville, GA
See for more information
© 2013 Atlanta REIA, LLC. All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher.           22
                                                                                                                     Atlanta Real Estate Investors Alliance • FEB 2013

       ments are LOW and the rent is HIGH.                       •     If the seller simply owes too much.                  Until Next Time,
       Those are some great examples of why you
       WOULD want to remain in the deal.                         •     Or if you just want an easy-in, easy-                Tony Pearl
                                                                       out type of simple deal to do that
       But IF the opposite is true, you should                         still quickly puts thousands of dol-                 Comment on this article online at
       simply collect your down payment from                           lars in your pocket without any risk       
       the seller & assign that deal that you                          or rehab.
       just lined up. Wait a minute! Assign the
       deal? WHO would you assign the deal to?                   In the example above, you got a check
                                                                 for (at least) $5,000, pretty quickly, and
       I’m smiling as I write this, and hopefully,               you don’t have to deal with the tenant-
       you will too as you realize the obvious:                  buyer or the seller ever again, if you don’t
                                                                 want to. In. Out. Paid. Done. Simple.                        Tony Pearl
       You ASSIGN the deal right back to                                                                                      202-556-0670
       the SELLER of the house! Does that                        Of course, there are some important de-            
       make sense?                                               tails in the middle that you should learn.
                                                                 If these types of deals make sense to you
       When the house goes back up in value                      and you would like to learn more, either                 
       & the tenant buyer is ready to buy,                       ask your local REIA leader to get more                   
       guess what?                                               information for you, or drop me a line.                   
                                                                 I’d love to help!
                                                                                                                                          Tony Pearl  is an entrepreneur,
       They’ll buy directly from the seller! And                                                                                          copywriter, proud father, mentor,
       you explain all that to everyone involved                 So there you have it. I believe that                                     marketing consultant and
       in the deal.                                              wholesaling pretty houses is one of the                                  talented teacher who resides
                                                                 best types of deals you can be doing in                                  in the Washington, DC area. He
           This Type Of Deal Is                                  2013 & beyond. It’s quick & easy, and                        has traveled to over 26 countries, speaks 4
                                                                                                                              languages, and continues to travel extensively.
       Tremendously Advantageous                                 there are plenty of deals like that out                      He has been a professional Ballroom and Latin
              To You When:                                       there now. Best of all, there’s VERY                         dance instructor, competitor, and exhibitor for
                                                                 little competition to do this. For now.                      over 19 years. As a Real Estate Investor, Tony
                                                                                                                              has bought and sold over Ten Million dollars
       •    Houses in that area are still declining                                                                           worth of real estate, and has been educated by
            in value.                                            Hopefully, your competition won’t read                       and associates with the best.
                                                                 this article!

       Achieving Your Goals with PAC cont. from p21
                                                                                                                              Russ Hiner
       come accountable. Being accountable                       What is the action step to begin plan-                       404-660-4289
       will lead to success which will give you                  ning? What should you do to help you               
       the confidence to take responsibility for                 remain on track?
       your greatness. Confidence is liberating.
       It leads to increased passion for your                    What can you do to make 2013 a differ-                   
       work. With renewed passion, 2013 can                      ent year for you, a year of success?                                     Russ has been investing in real
       be your year of commitment and success.                                                                                            estate in Atlanta Georgia since 1981.
                                                                                                                                          His company currently controls
       With renewed energy, you can follow                       I am looking forward to meeting you                                      apartment buildings and single-
       your Plan that will lead you to Consis-                   and helping you on your way to a suc-                                    family properties in Georgia and
       tency, Accountability, and SUCCESS!                       cessful 2013!                                                other states. His focus is on raising private
                                                                                                                              capital through Hedge Equity, LLC.
       So, it’s 2013. You have goals.                            Comment on this article online at                            Russ invests everyday. His knowledge and
                                                                                     experience is current in the market. He is
       Will you use the same techniques that                                                                                  capitalizing on the needs, wants, and desires
                                                                                                                              of the customer. He has a deep level of
       you did in 2012? Or will you join me                                                                                   experience in building relationships with
       and others whom I’ve worked with in                                                                                    vendors, investors, tenants, sellers, and
       using new tools and renewed energy?                                                                                    qualified buyers. He has the knowledge
                                                                                                                              to negotiate contracts, manage rental
                                                                                                                              properties, and make his co-investors wealthy.
                                                                                                                              He enjoys taking properties which are virtually
                                                                                                                              destroyed, renovating them, and creating a
                                                                                                                              better community.

© 2013 Atlanta REIA, LLC. All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher.                 23
                                                                                                                     Atlanta Real Estate Investors Alliance • FEB 2013

       creative Financing is king

       How to Quickly Get 10 to 15 Good
       Rental Properties Paid For Free and Clear
       By Larry Harbolt

       W             e are already in the second
                     month of 2013 and I just
                     had a conversation with one
       of my students who wanted to know how
       to create wealth in the shortest possible pe-
                                                                 houses to achieve your goals. If you have
                                                                 15 houses x $600 net each month will give
                                                                 you $9,000 per month income to cover
                                                                 your monthly expenses. Once you have
                                                                 that much coming in each month you will
                                                                                                                                    You Must Have a Wealth
                                                                                                                                    Building Strategy to Be
                                                                                                                            This is how true wealth is created over
       riod of time. The following is my idea how                have financial freedom, but not yet wealth.                time. People who only wholesale property
       wealth for any real estate investor can be                Wealth comes over time. Let me show you                    for a living are not true investors -- they
       created in the shortest period of time.                   how to get your properties free and clear in               really have a job. When a wholesaler buys
                                                                 the shortest period of time.                               a property and then passes it on to another
       Here is an example of how you can quickly                                                                            person and they get paid a fee, that money
       achieve financial freedom and then wealth                  Getting Your 10 to 15 Houses                              will be quickly spent and they then have to
       investing in real estate.                                    Free and Clear In a Short                               go out and find another property to whole-
                                                                         Period of Time                                     sale again so they can get another fee. To
       For instance, the first thing you need to do                                                                         me, that’s a job and I don’t want another
       is buy 10 to 15 well selected income pro-                 After you have your base of 10 to 15                       job. I want financial success.
       ducing properties you are willing to keep                 houses bought, then each year go out
       long term as your retirement program and                  and buy an additional 10 to 15 houses.                     If you plan to be a successful real estate in-
       the base of your future wealth. I personally              The additional 10 to 15 houses you buy                     vestor and create the wealth you want, it
       love the thought of someone else having to                each year can be rehabbed and then sold.                   is going to be very important that you are
       go to work every day to earn money they                   If you were to take all of the profits from                able to recognize opportunity when it pres-
       give me in the form of rent each month                    the sale of each of the additional 10 to                   ents itself. It took me nearly 25 years to
       that pays for my properties without me                    15 houses (after paying the taxes) and                     figure this out for myself and that is why I
       having to have a job or have to go to work                use the money you have left to pay off                     am sharing this information with you now,
       every day. Then once you have bought                      one or two of the loans on the houses                      so you can more quickly achieve financial
       your 10 to 15 keeper rental houses in good                you plan to keep and you did this over                     freedom and your eventual wealth.
       neighborhoods, with tenants who are pay-                  and over for a few years, your base of
       ing on time, every month, let’s say, $1,000               rental properties would soon be com-                       Comment on this article online at
       each month of which $520 goes for the                     pletely paid for and you would then have         
       monthly loan payment, and after monthly                   enough income coming in each month
       expenses of property taxes, property insur-               to be financially free.
       ance, a maintenance fund and a vacancy                                                                                 Larry Harbolt
       fund leaves you from the $1,000 gross rent                This is definitely a plausible and possible
       approximately $150 each month to put                      plan to become financially free in the short-
       into your pocket. Let’s say for each of your              est period of time. Once you have done this        
       keeper rental properties you paid $88,000                 you will then have more time and money                   
       with very little money down and were able                 to continue to buy even more houses sim-                 
       to get seller financing terms for 30 years.               ply because you will have enough income                  
                                                                 each month coming in so you don’t have to                               Larry Harbolt is the nation’s leading
       Then once you get those 10 to 15 houses                   go to a job you hate every day.                                         creative Seller Financing expert as
       free and clear with no debt each month you                                                                                        well as a popular national real estate
                                                                                                                                         speaker and teacher whose time-
       get to keep the entire $1,000 from each                   Once all of your base of income produc-                      tested strategies and nuts and bolts teaching
       house, (less taxes and insurance and main-                ing properties are completely paid for and                   style has helped thousands of aspiring real estate
                                                                                                                              entrepreneurs realize their financial dreams
       tenance costs) leaving you about $600 to                  are free and clear you will probably truly                   with little or no money and without the need
       $650 from each house each month. Ten                      be a millionaire. If you have 15 properties                  for credit. Larry has been successful creatively
                                                                                                                              buying and selling real estate for over 30 years
       houses at $600 each equals $6,000.00                      valued at $80,000 that are free and clear                    and has written numerous popular articles and
       each month paid directly to you to pay                    your net worth will be $80,000 X 15 =                        real estate courses. Larry also has been running a
                                                                                                                              meetup group in St Petersburg, FL for real estate
       your bills. Some of you might need 15                     $1,200,000. Now you are wealthy!                             investors for over 13 years.

© 2013 Atlanta REIA, LLC. All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher.                  24
                                                                                                                     Atlanta Real Estate Investors Alliance • FEB 2013

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© 2013 Atlanta REIA, LLC. All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher.      25
                Atlanta REIA Membership Application
       Mail Application to Atlanta REIA, 2700 Braselton Hwy, Suite10-183, Dacula, GA 30019 or Fax to 770-216-1560

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Applicant #1:                                                              (sign)      Applicant #2:                                                             (sign)

                                                                          (print)                                                                                (print)

Date:                                                                                  Date:

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       Mail Application to Atlanta REIA, 2700 Braselton Hwy, Suite10-183, Dacula, GA 30019 or Fax to 770-216-1560
                                                                              rev 1/28/2011
                                                                                                                     Atlanta Real Estate Investors Alliance • FEB 2013

       Atlanta REIA Meetings Calendar
   PLEASE noTE: This schedule is subject to change. Visit for the most current schedule.

         February 4th, 2013                                         2nd Wednesday of Each Month                              3rd Wednesday of Each Month
         Atlanta REIA Main Meeting                                  Spanish Investors Networking Group (SING)                Late Nite Networking Buford
         5:30 PM – 9:00 PM                                          6:30 PM – 8:30 PM                                        9:00 PM – Late Nite
         Crowne Plaza Ravinia Hotel                                 Taco Depot                                               Tilted Kilt
         4355 Ashford Dunwoody, Atlanta, GA                         4788 Sugarloaf Pkwy, #107, Lawrenceville, GA             3480 Financial Center Pkwy, #M1080, Buford, GA
         Leader: Dustin Griffin                                     Leader: Michael Vazquez                                  Leader: Dustin Griffin & Gordon Catts                                          

         1st Monday of Each Month                                   2nd Wednesday of Each Month                              3rd Thursday of Each Month
         Late Nite Networking Dunwoody                              I Love Marketing Group                                   Savannah REIA
         9:30 PM – Late Nite                                        7:00 PM – 9:00 PM                                        6:30 PM – 9:00 PM
         Tilted Kilt, 1155-B Mount Vernon Hwy, Atlanta, GA          Social Vinings, 3621 Vinings Slope SE, Atlanta, GA       Gallery Espresso
         Leader: Lee Budden                                         Leader: Rock Shukoor                                     234 Bull St, Savannah, GA                                                     Leader: Aislee Jackson
         1st Monday (Once Per Quarter)                              2nd Thursday of Each Month
         Mobile Real Estate Rockstars Group                         Atlanta REIA South Meeting                               4th Monday of Each Month
         3:00 PM – 5:30 PM                   Meets Monday           6:30 PM – 8:30 PM                                        Atlanta REIA West Meeting
         Total Wine & More                     Feb. 4th             Giovanna’s Italian Kitchen                               6:30 PM – 9:00 PM
         124 Perimeter Center W, Atlanta, GA                        1375 Virginia Ave, East Point, GA                        Cherokee Cattle Company
         Leader: Don DeRosa                                         Leader: Reggie Jackson & Gordon Catts                    2710 Canton Rd, Marietta, GA                                              Leader: Leslie Mathis
         1st Monday (Once Per Quarter)                              2nd Thursday of Each Month
         Short Sale & Foreclosure Group                             North Georgia REIA                                       4th Monday of Each Month
         3:00 PM – 5:30 PM                                          7:00pm - 9:00pm                                          Late Nite Networking Marietta
         Total Wine & More                                          Hilton Garden Inn Cartersville, 24 Liberty Drive,        9:00 PM – Close
         124 Perimeter Center W, Atlanta, GA                        Cartersville, GA                                         Cherokee Cattle Company
         Leader: Bob Massey                                         Leaders: Bill & Kim Cook                                 2710 Canton Rd, Marietta, GA                                                          Leader: Leslie Mathis
         1st Monday (Once Per Quarter)                              2nd Thursday (Once Per Quarter)
         Active Investors Group                                     Small Business Group (SBG)                               4th Tuesday of Each Month
         3:00 PM – 5:30 PM                                          3:30 PM – 5:30 PM                                        Note Buyer Group Meeting
         Total Wine & More                                          5 Seasons Brewing                                        6:30 PM – 8:30 PM
         124 Perimeter Center W, Atlanta, GA                        5600 Roswell Rd, Sandy Springs, GA                       Olive Garden
         Leader: Gordon Catts                                       Leader: Karen Bershad                                    2467 Cobb Parkway SE Smyrna, GA
                                                                                         Leader: Tom Boyer
         1st Tuesday of Each Month                                                                                 
         Mountain REIA                                              3rd Monday of Each Month
         6:30 PM – 9:00 PM                                          Movers & Shakers Lunch Meeting                           4th Thursday (Once Per Quarter)
         Golden Corral                                              11:00 AM – 1:30 PM                                       Beginning Investors Group Meeting (BIG)
         2025 Market Place Blvd, Cumming, GA                        5 Seasons Brewing3655 Old Milton Parkway,                6:30 PM – 9:00 PM
         Leader: Gordon Catts                                       Alpharetta, GA                                           Chef Rob’s Caribbean Cafe                                    Leader: Gordon Catts                                     5920 Roswell Rd NE, #A117               Next Meeting
                                                                            Sandy Springs, GA                        March 28th
         1st Wednesday of Each Month                                                                                         Leader: Alan McDonald
         Creative Deal Structuring Group (CDS)                      3rd Tuesday of Each Month                      
         7:00 PM – 9:00 PM                                          Gwinnett County Group (The Fish Club)
         Whitehall Tavern                                           7:00 PM – 9:00 PM                                        4th Thursday of Each Month
         2391 Peachtree Rd NE, Atlanta, GA                          Red Lobster                                              Cash Cows Commercial Group
         Leader: Russ Hiner                                         2055 Pleasant Hill Rd, Duluth, GA                        11:30 AM – 1:00 PM                                 Leader: Aaron McGinnis                                   5 Seasons Brewing,
                                                                                    5600 Roswell Rd, Sandy Springs, GA
         Every Thursday                                                                                            
         (Except Major Holidays)                                    3rd Wednesday of Each Month
         Have & Wants Meeting                                       Atlanta REIA North Meeting                               Meets at Various Times Each Month
         1:30 PM - 3:30 PM                                          6:30 PM – 8:30 PM                                        Cash Flow Players Group Meeting     Next Game on
         5 Seasons Brewing                                          1960 Skylar Hill Dr, Suite D, Buford, GA                 To Be Announced                     Sat, Feb 9th!
         5600 Roswell Rd, Sandy Springs, GA                         Leader: Dustin Griffin & Gordon Catts                    Secrets Factory
         Leader: Joe Thompson                                                          2030 Powers Ferry Rd SE, #440, Atlanta, GA                                                                                Leader: Alan McDonald

© 2013 Atlanta REIA, LLC. All Rights Reserved. Quotation and reprint are not allowed without written permission of the publisher.                   27
    PLEASE noTE: This schedule is subject to change. Visit for the most current schedule.

                                              FEBRUARY 2013
     SUNDAY             MONDAY                TUESDAY              WEDNESDAY                  THURSDAY                 FRIDAY       SATURDAY
                                                                                                                  1             2

3                  4 Atlanta REIA        5                       6                        7                       8             9
                    MAIN MEETING         Mountain REIA           Creative Deal            Haves & Wants Meeting
                     with Bill Cook      6:30pm – 9:00pm         Structuring Group        1:30pm - 3:30pm
                  5:30pm – 9:00pm                                7:00pm – 9:00pm
                  Mobile Real Estate
                  Rockstars Group

10                 11                    12                      13                       14                      15            16
                                                                 I Love Marketing Group   Haves & Wants Meeting
                                                                 7:00pm – 9:00pm          1:30pm - 3:30pm                       Wealth Building
                                                                                          Atlanta REIA                            Using Self-
                                                                                          South Meeting                          Directed IRAs
                                                                                          6:30pm – 8:30pm                        with Dyches
                                                                                          North Georgia REIA                     Boddiford &
                                                                                          7:00pm - 9:00pm                       Pete Fortunato
                                                                                                                                  Atlanta, GA

17                 18                    19                      20                       21                      22            23
                   Movers & Shakers      Gwinnett County          Atlanta REIA            Haves & Wants Meeting                  Grow Your Wealth
                   11:00am - 1:30pm      Group (The Fish Club)   North Meeting            1:30pm - 3:30pm                        With The Financial
                                         7:00pm – 9:00pm
                                                                                                                                Calculator Workshop
                                                                                                                                with Bill & Kim Cook
                                                                 Late Nite                                                           9:00am - 5:00pm
                                                                 Networking Buford                                                    Cartersville, GA
                                                                 9:00pm - Late

24                 25                    26                      27                       28
                   Atlanta REIA          Note Buyer Group                                 Cash Cows Commercial
                   West Meeting          Meeting                                          Group
                   6:30pm – 9:00pm       6:300pm – 8:30pm                                 11:30am - 1:00pm
                   Late Nite                                                              Haves & Wants Meeting
                   Networking Marietta                                                    1:30pm - 3:30pm
                   9:00 PM – Close

                                         NEWSLETTER dESigN PRovidEd by

Description: This is the February 2013 Edition of The Profit Newsletter for the Atlanta Real Estate Investors Alliance (Atlanta REIA).