Print • Online • Network
www.realty411guide.com | Vol. 3 • No. 2 • 2010 A Resource Guide for Investors
Tips for Long-Distance
Around the Nation
Cash Flow from the
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Mathew Owens, CPA, owner of
Buys & Rehabs
Rentals in Tennessee
from Redondo Beach
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Learn Creative Real
from Dave Lindahl, Dolf de Roos,
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California Depar tment of Real Estate, Real Estate Broker
Bruce Norris Financial Group Inc.
DBA The Norris Group
DRE License 01219911
Investors & Industry Leaders Share
an Evening of Glamour & Giving
The 3rd Annual “I Survived Real Estate 2010” will Raise Money for
Breast Cancer Research & Unite the Nation’s VIPs to Discuss Investing
by Lori Peebles for investor rights. For the past two years, event honors her courageous effort to fight
he has united real estate giants to discuss this disease and hopefully adds to the like-
oes “Shadow Inventory” really ex- the issues that matter, and most important- lihood of someday finding a cure.”
ist? What is the state of the REO ly, to exchange ideas that can help investors In addition to raising breast cancer
market? These are just some of do what they do best: rebuild communities awareness and funds for research, as well
the crucial questions to be and rejuvenate econo- as providing investors of all levels access
Bruce Norris with his wife & son.
tackled by real estate in- mies. to information, “I Survived Real Estate”
dustry experts on the eve- “The panel we’re has been instrumental in spotlighting the
ning of September 17. putting together can crucial role investors have in our nation’s
The Norris Group, speak about these issues economic infrastructure.
headed by Bruce Norris, from several differ- Norris explains: “This event gives a
a 30-year veteran known ent point of views and chance for investors to be seen in a different
among investors as the hopefully provide us light. We all know investors are often seen
“Nostradamus” of Cali- with some new as the “sharks”
fornia real estate, is once insights mov- Tommy Williams of the real estate
again organizing their an- ing forward,” i n d u s t r y. We
nual philanthropic event in Norris explains. take this night
Orange County. Some returning to show other
This black-tie affair guests, include: sectors that we,
is one of the most fash- Joseph Magdz- as investors,
ionable tickets in town, iarz, 2011 presi- play a signifi-
mixing charity, important dent for the Ap- cant role in the
trend updates, education, praisal Institute; solution side of
entertainment and industry networking. It Tommy Williams, 2008 president of the market.”
is always a sold-out gala, one that attracts the National Auctioneers Association; and Norris knows firsthand that real estate
the Who’s Who of real estate. Christopher Thornberg, principal of Bea- investors take great risks in a volatile mar-
When we attended last year, it was fasci- con Economics. ketplace. “With greater acceptance, their
nating to note that besides all the tuxedos, New guests are also being added. “We ideas have a better chance at being heard
satin dresses and crème brulées on fine chi- are very excited to have Sean O’Toole and being implemented,” he says.
na, some serious industry trends and alter- from Foreclosure Radar joining the panel The charity event was designed to give
native solutions were pre- this year to add his everyone, regardless of personal income,
Guests at the last year’s event.
sented in just a few hours. data-driven and in- an opportunity to participate.
It was an evening of edu- vestor-minded per- “By joining our walk team and raising
cation with a sophisticated, spective.” the money in their networks, attendees
entertaining twist, much like For Norris, the “I and sponsors can technically come free of
the man behind the event. Survived Real Es- charge,” Norris explains.
“The theme for ‘I Sur- tate” series is per- Sponsorship opportunities are also
vived Real Estate 2010’ sonal. This night is a available. Benefits for advertisers include
will again focus on trends, way of honoring his inclusion in all mailers to local, state and
solutions and have an added wife, his family, his national government officials, SEO op-
focus on the state of REOs,” Norris says. community and profession. timized website advertising, inclusion in
“With constantly changing government In the last two years, the fundraiser has mailers and flyers, plus event program
regulations, it’s been difficult for anyone in raised over $100,000 for the Susan G. and screen exposure. Each sponsor is also
the real estate business to build a sustain- Komen Foundation; these funds are used mentioned in video and radio segments that
able business model.” for breast cancer research. air before and after the event.
Norris, a 30-year veteran investor (from “My wife, Marsha, was diagnosed with For more information, please visit online:
rehabber to private lender) is a champion breast cancer more than 15 years ago. This www.ISurvived2010.com
Realty411Guide.com PAGE 35 • 2010 reWEALTHmag.com
for The Ultimate Cash Flow Buying Tour
The Clothier family, from left to right:
Chris, Brett, Kent and Kent Sr.
ainstream reporters who
present real estate as
doom and gloom surely
haven’t been to Mem-
phis. The city, known as
the birthplace of rock ’n’ roll and the blues,
is bustling with industry activity — and
visitors aren’t just touring Graceland and
Beale Street, they’re leaving as bona fide
landlords. MemphisInvest.com & FortuneBuilders
Our editorial team was invited to attend
The Ultimate Cash Flowing Buying Tour Unite Investors from 18 States & 2 Countries
by MemphisInvest.com, a boutique, Mem-
phis-based brokerage catering to out-of- and Sell 29 Rental Homes in 2 Days!
state investors. by Linda Pliagas
The company, which serves more than
200 clients and manages more than 650 in- outstanding views and plump pillows. In- where we have our own personal invest-
vestment properties for them, joined forces vestors traveled from 18 states to attend, ments,” Chris says. The Clothiers person-
with the San Diego-based FortuneBuild- one couple arrived from Canada. ally own more than 100 rental homes in a
ers, Inc., (owned by Than Merrill and the Most of the attendees were investors handful of quality, long-term buy-and-hold
“Flip This House” team) and wanting to learn how to be- areas of Memphis.
together they organize one of come MemphisInvest.com Typical home prices range from $34,000
the largest property buying clients. Many were referrals to $85,000, rents average out be $850 per
events in the nation. from their existing client month. The city boasts high rents and low
“You’ll never see anything base, and some were repeat prices. But surprisingly, 48% of Memphis
quite like this,” promised customers. residents rent.
Kent Clothier Sr. during our “Our average client buys The Clothier family, who were formerly
telephone conversation a few four homes and refers us to in the grocery business, moved to Tennes-
months ago. Kent Sr. is found- all of their friends and fam- see because they saw such an opportunity
er of MemphisInvest.com. He ily,” says Chris Clothier, for long-term real estate investing and
takes the helm of the 18-team- director of sales and market- monthly cash flow.
member operation, which is ing. At the time, Kent Sr., Kent and Chris
managed by his three sons, MemphisInvest.com pro- were scattered about, working in different
Kent, Chris and Brett. vides clients with an option of either buy- real estate markets (Texas, Colorado and
In my six years as an out-of-state inves- ing a turn-key rental home or one that needs Florida). Memphis real estate brought the
tor, I had never attended a property buy- rehab. The company oversees the work for family together. It’s an additional perk for
ing tour. Plus, I repeatedly heard about the investors. Each property has a separate proud papa Clothier. “I’m the luckiest man
the benefits of the Memphis market from quote for the renovation included in its pro- in the world to have my sons working next
many sources. I thought, ‘What a perfect forma profile. If the rehab goes over bud- to me,” Kent Sr. told the crowd that day.
time to put on my reporter’s cap and go get get, it comes out of the company’s pocket. On the first day of the tour, the investors
the scoop.’ MemphisInvest.com caters to investors gathered to get educated on the local mar-
The Ultimate Cash Flow Buying Tour def- who are looking to buy in typical middle- ket, meet the Clothier family, and mingle
initely stood up to its name. Just being in a class areas. The company says they stay with JD Esajian from FortuneBuilders.
room filled with investors from around the away from crime-ridden pockets of the (The “Flip This House” team owns numer-
nation was electrifying. On the first day, the city, regardless of how the numbers may ous rentals in the area.)
event was held at a ballroom in the Hilton appear on paper.
Hotel, a circular 27-story glass beauty with “We only offer houses in the same areas Continued on pg. 58
Realty411Guide.com PAGE 37 • 2010 reWEALTHmag.com
Seeking Financing Interview and article
by Lori Peebles
for Your Next Deal? We’re looking for current
value as opposed to future
This California-based private value. Loans that need to be
based on an ARV or higher
lending company offers creative appraisal value won’t typi-
financing solutions in all 50 states cally work for an asset-based
lender. However, we do have
clients who are rehabbers
MG Capital, LLC, compared to a bank. who own other free-and-clear
an asset-based lend- With MMG Capital, property, they then secure a
ing company, be- no income verifica- line of credit with us for the
lieves successful in- tion is needed nor is purpose of purchase and re-
vestors need to have credit score or sea- habbing more property.
skin in the game. soning taken much
For that reason, they still invest company into consideration. The allure of their program
funds alongside those of their investors Recently, our editorial team spent time is that underwriting guidelines are not
who supply the private money used in their reviewing some of the company’s pro- based on the borrower’s credit, income or
operation. grams, which include private lending, trust seasoning, which truly opens up the play-
Both company and client assets have deed investing and unique investing vehi- ing field for many more investors. In real
grown significantly since their formation in cles, which offer short-term liquidity and estate transactions, time is truly of the es-
2007. In fact, the compa-
ny’s principals have been
responsible for the man-
agement of assets valued MMG Capital Funds Creative
at more than $6 billion.
Although MMG Capi-
tal is only three years old,
Investors Across the Country
the principals have over
50 years of combined industry experience; safety backed by real estate. sence, and Gleason explains how their pro-
their expertise includes banking, private We then asked Gleason to give us and gram can help investors move confidently
equity transactions, development, secured our readers a better understanding of how on offers and close quickly on deals.
lending, land acquisitions and sales. their services can help leverage the as-
From an investor’s point of view, one of sets of their clients so they can grow their We take a very common sense approach
the most impressive features of the com- wealth more quickly. to lending. Asset-based lending has been
pany is that they lend on a national scale First, Gleason gives us a glimpse as to around for decades, but it was largely
— most “hard money” firms keep close to who their typical “hard money” lending abandoned by most firms during the boom
home and rarely venture off into faraway client might be and shares some of the cri- years because anybody who could fog a
markets. teria they look for when funding deals. mirror could get credit. Now we’ve ar-
“We’ll go to all 50 states,” says Chris rived back to an old school standard where
Gleason, managing director of MMG Capi- We see a very wide range of real prop- we’re lending realistic amounts against
tal, LLC. He explains further, “There are erty investors who are looking for capital, realistic values and realistically taking
a number of markets across the country all the way from the most sophisticated into account the kind of trouble that our
where we’ve found the types of deals that investor down to the beginner. The inves- marketplace is in. It’s really a plus and a
we look for, and they tend to be in higher tor who makes the best candidate for an minus for investors – only those who have
value areas with greater demand.” MMG Capital Loan is the investor with solid assets are able to obtain financing
Currently, the states where MMG is the at least moderate real estate investing ex- and “nothing down” scenarios don’t ex-
most active are California, Florida, New perience and a substantial balance sheet. ist anymore. But, for those who have the
York and Tennessee. MMG Capital is an asset-based lender, so net worth to support an asset-based loan,
The firm’s success stems from their rig- we’re really looking for two things: hard there’s very little competition for them and
orous lending practices, Gleason admits equity and net worth. We can be a great they can align themselves with a private
that only one deal out of 75 makes sense for financing partner for a real estate inves- lender like us who will provide them quick
them to lend on. However, since they are tor who is doing significant business and capital based on their current equity.
an asset-based lender most investors have already has some substance to their bal-
an easier time qualifying for an MMG loan ance sheet. Continued on pg. 61
Realty411Guide.com PAGE 39 • 2010 reWEALTHmag.com
Veteran Syndicator Discovers
Golden Opportunities in California
by Lori Peebles
oodson “Chip” Philbin be- come about in everyday affairs. Routine His angel investor continued to be in-
gan his career as a securi- business connections can turn into friend- volved in projects with Philbin and togeth-
ties broker, but he soon ships, which can then evolve into joint ven- er they built a solid portfolio.
left Wall Street tures. That was exactly the “With him as my partner, I developed
to sell “tangible” investments. case for Philbin. His career three single-tenant NNN leased commer-
Fast forward 23 years later, as a commercial mortgage cial buildings, all leased with terms of 15
the Sacramento-based lender broker opened the way for to 20 years, in which I placed fixed-rate
and mortgage broker now has joint ventures with his as- permanent financing right after completion
a successful career as a real es- sociates and clients. and occupancy by the tenants.”
tate syndicator. “I was referred to a well- Long-term buys may be his strategy of
Many professionals are lured heeled investor by Comer- choice, but make no mistake, cash flow to-
into the real estate industry ica Bank, who owned day is the goal when Philbin and his inves-
with a hope of one day purchas- a high tech company in tors acquire a property.
ing the very object they sell. At Santa Clara and needed His success record is impressive. “The
first, Philbin, CEO of Philbin to refinance his plant. I ar- cash flow from this small portfolio is
Capital, wasn’t focused on his ranged the loan and didn’t nearly $400,000 annually, plus I was able
own portfolio as much as those hear from him for about to finance out almost all of our entire cash
of his clients. He was initially attracted to four years,” he recalls. But then one day, investment, so we have very little cash left
the business as a commercial real estate opportunity knocked. in these deals.”
lender and mortgage broker because it “He called me in to discuss another refi- The massive passive cash flow has been
made financial sense in contrast to the high nance, this time a cash-out refinance. We a blessing, but Philbin admits it made him
volatility of the securities market. did some analysis on how much he should a bit complacent. For the past several years
“At one of my previous employers, the borrow and I arranged another loan for he’s been working primarily on his handi-
management started a real estate investment him. At that point we decided to become cap at the Northridge Golf Club in Fair
trust, got it listed on the American Stock partners and to purchase cash-flowing Oaks instead of pounding the pavement to
Exchange, and raised about $100,000,000 commercial and multifamily property.” procure new investors.
to do mortgage loans. They went through The new partners joined forces and But now that his primary angel investor
the hundred million in about five years,“ he funds, which led to the purchase of a 72- is retiring, Philbin is actively recruiting
recalls. “Here I learned that one of the main unit apartment complex in Chico, Calif., a new investor partners who are interested
objectives of those that manage REITS is property they still own today. in commercial investment opportunities in
to generate management fees and not nec- When questioned about his transition the Northern and Central California mar-
essarily safeguard their investors’ money.” from adviser to partner in his dealings with ketplace.
That experience, along with his experi- clients, Philbin replies: “People have a real The company prides itself in investing
ence as a stock broker and other stories need for trusted advisers who are experts funds into every deal alongside the partner.
similar to ENRON, made Philbin wary of in their given industry. If you have a high He believes in full disclosure, low manage-
paper assets. He explains: “Stocks have degree of integrity and put your clients and ment overhead, and welcomes partners who
limited true inherent asset value contrary to investors ahead of your own interests, then are relationship-oriented and are seeking
real estate, which is tangible.” opportunities will present themselves.” long-term, tax-sheltered passive income.
Philbin, who was busy arranging funding Although rehabbing tends to attract the While profits and returns are what inves-
for multimillion dollar deals his investors spotlight in real estate, Philbin shuns those tors strive for, Philbin stresses that build-
were securing, did not stay on the sidelines quick-turn deals and prefers to invest with ing long-term business relationships is the
for long. “I formed a partnership with ten a five to seven year minimum holding pe- most gratifying aspect of the real estate
people I knew, and we made a hard money riod. Because of his mortgage background, business.
loan to a small grocery store north of Sac- when possible, Philbin prefers to refinance “I really enjoy people and enjoy the real
ramento,” Chip says. He adds, “We loaned the asset after an initial holding period so estate business,” says the 29-year industry
the owner/operator about $1,000,000 at that investors can retrieve their initial down veteran.
11% for two years. I had $100,000 in this payment, leaving little or no cash in the deal
deal and my investors provided the rest.” and magnifying returns. Philbin is partial to For questions regarding commercial real
One of the benefits of working in real owning retail centers, single tenant NNNs, estate, contact Chip at (916) 961-6832 or
estate is the networking opportunities that multifamily and industrial properties. visit: www.PhilbinCapital.com
Realty411Guide.com PAGE 40 • 2010 reWEALTHmag.com
Real Estate Investments/Partnerships
“[Chip] is unique in that he has true professional understanding of all key
He has been very open in his communications and honest to a fault in
Gerald McIntyre - Partner
Chip Philbin 916-961-6832 firstname.lastname@example.org
Visit our website at www.philbincapital.com
Realty411Guide.com PAGE 41 • 2010 reWEALTHmag.com
Success and Happiness in Life
by Sam Sadat, founder of Los Angeles Real Estate Investors Club
A re you a creative person? When
was the last time you came up
with a creative idea? But why
be creative? Why challenge the rules and
perhaps even appear stupid to others? Be-
for a few more years,
but to benefit from it
new knowledge and
later when he worked for the
Atari Corporation. Thanks
to his modern dance classes,
he was able to calculate how
much resolution of movement
cause creativity is the stuff of life. That is a ber how our lives have was needed in their video
big reason, but there are other more reasons changed since the 9/11? games.
to consider. Another reason is change. We Well, the business rules The real estate entrepreneur
all know the only constant in life is change, of engagement have Frank Morrow explains that
albeit we tend to resist change. (In fact, the also changed drasti- he got his entrepreneurial
only person I know who likes “change” is cally. Real estate has education while attending the
a wet baby.) taken the biggest blow, graduate school of business at
When things change, new information and as usual, our gov- Stanford. Although he took
emerges, which leads to a brand new set of ernment’s answer to every problem is more all the required courses in marketing, fi-
problems. It’s proven time and time again regulation. In contrast, I advocate educa- nance and accounting, he said. “I learned
that it’s no longer possible to solve today’s tion over regulation. But you can’t find more about business from a drawing course
problems with yesterday’s answers. So you that kind of knowledge in any accessible than anything else. My teacher taught us:
have a decision to make: You can either or even comprehensible fashion in our bu- ‘All art is a series of recoveries from the
complain about how difficult things have reaucratic system. first line. The hardest thing to do is to put
become or employ your creative juices to To obtain this kind of knowledge required down the first line. But you must.’ The
come up with new ideas, new solutions, for prosperity, you need to attend and net- same is true in business. You must act. A
work in real estate meetings lot of business school-types analyze things
and seminars. Venues such as to death and never get around to acting.
Socrates once said: our real estate club, Los Ange-
les Real Estate Investors Club
Perhaps more of them should take drawing
“An unexamined life (LAREIC), will provide you
with the new knowledge on
I believe your mindset is more important
than nuts and bolts. We have plenty of real
is not worth living.” how the game is being played
now. Once you know what’s
estate knowledge at our monthly meetings
and seminars to arm you with helpful tools
working in today’s market, to succeed in this market. But I challenge
and new paradigms. you’d be able to further develop your cre- your beliefs relative to success. Remem-
This economic turndown has vastly influ- ativity and capitalize on it more effectively. ber that unless you break with the old,
enced our lives in recent years. It has forced Without this new information, you’re lim- you won’t let in the new. In other words,
us to stop and examine our lives. Socrates ited to old solutions, which are ineffectual Light (education, abundance and love)
once said “an unexamined life is not worth in our fast-changing world. won’t come into your life until you show
living.” So, I think this recession may ulti- I believe there are ways to enhance your the courage to literally kick out Darkness
mately prove to be a good thing because we creative powers. Here are a couple of sug- (ignorance, scarcity and fear.)
are learning valuable lessons. What would gestions from two highly successful peo- So expand your horizons, step outside
make it even better is if we further examine ple. of what’s considered normal, break the
our spending habits and reasons why we Steven Jobs was asked why some people boundaries of what seems reasonable, and
tend to live beyond our means. This kind are more creative than others. He replied, act upon your knowledge. There’s never
of introspection is needed if we are to attain “Innovation is usually the result of con- been a more important time in our coun-
financial freedom ourselves and to save our nections of past experience, but if you try’s history (or the world for that matter),
great country from becoming another great have the same experiences as everybody than the present. What we do today will af-
civilization that was. else, you’re unlikely to look in a different fect humanity and shape our future destiny.
To affect positive change we needed an direction.” For example, in college, Jobs So, let’s make it a good one.
impetus and we got one, the Subprime took modern dance classes to meet women.
Meltdown, the biggest economic downturn What he didn’t realize was how much he Kindest regards,
since the Great Depression (or as I call it, learned about movement and perception Sam Sadat — email@example.com
the 9/11 of the business world). It is here in those classes, which came handy years Be sure to visit online: www.LAREIC.org
Realty411Guide.com PAGE 42 • 2010 reWEALTHmag.com
LARGE EQUITY AND POSITIVE CA$H FLOW
DPW helps investors create wealth through Real Estate Investments. We will show you how to become
a successful investor. We take away all the guess work because real estate investing should be effortless. We
will do everything we can to make sure our investors are taken care of and are educated on the entire process.
Our goal is to make real estate investment easy for the average investor through our various investment programs.
How to Get the
by Kathy Fettke Deal
T rying to get
a good deal
in today’s market
because the price tags
are much higher, but
can be frustrat- the deals are sweeter.
ing. It might mean For example, we just
making a hundred wrote down a $12.9
offers before you million FDIC loan to
get the one that $3 million on 27 al-
makes sense. And even if you most-finished water-front con-
have cash and will close “as dos in Portland. Investors will
is,” you still might lose out. make over 40% in one year.
Or you might end up with the This is truly the greatest
property and find out later you wealth transfer in history. Op-
paid too much or got stuck with portunities abound, and to-
a lemon. gether we can make it happen.
So how are the experienced Mistakes happen when inexpe-
investors getting deals with rienced people jump into some-
less effort? At Real Wealth Net- thing they don’t understand.
work, we have found the power That’s why so much wealth has
of numbers. Our teams buy in been lost over the past decade.
bulk directly from the bank. You don’t have to go it alone,
The banks love this because learn from the experts.
they can move more property Real Wealth Network brings
at once, even if it means slash- new and experienced investors
ing prices. In most cases, the together to share information
properties never make it to and learn from each other.
the open market before we’ve Our site has articles, videos,
hand-picked our favorites. It’s blogs, podcasts and downloads
tough for an individual to com- to help educate our members to
pete with a bulk purchase. make smart investing decisions
We also pool funds to pick during this once-in-a-lifetime
up almost-complete subdivi- opportunity.
sions or multi-family proper- For information, visit:
ties. Again, this is tough for the www.RealWealthNetwork.com
CashFlowCows.com Alternative Economics™
Sales and Referrals since 2006
CA nwide Club Launches in CA
by Linda Pliagas
alifornia is that owns a 112-unit apartment
Our Personal Team Can Help You one of the complex in Florida.
Start or Grow Your RE Portfolio most active Ritchie wholeheartedly
Sign Up Online for e-Mail Alerts! states for believes in the importance of
investors. Even during
Over $7 Million in Sales! this current economic
diversification and says others
feel the same way. “This breadth
We help clients every step of the way...
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vestor education, a new I am providing applicable eco-
investment club system nomic alternatives to help mem-
Owned by Linda Pliagas was recently launched bers develop their own personal
Her credentials include: in California by Roger system of financial growth.”
Landlord since 1994
Roger Ritchie Leads New Group
Licensed Real Estate
Sales Agent since 2000
since 2004 - 5 States
Founder & Publisher of Ritchie, a Los Angeles-based real estate Through monthly meetings, Ritchie says
Realty411 since 2007 License # 01355569 investor and frequent club-circuit guest. CIEC will provide educational products
“I’m NEVER too Busy for YOU!” The Cerritos Investor Education Club, to educate investors about a broad range
310.994.1962 • firstname.lastname@example.org founded by Ritchie, however, goes way of investment vehicles, both locally and
beyond the typical real estate club. The nationally.
Sign Up for VIP Listings @ CashFlowCows.com financial education training is based on CIEC is now part of what makes up a
Alternative Economics™, a personal growing investor community known as the
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SAM GREEN Photography
designed to reveal hidden assets and apply whose clubs are based on the NSIC club
them to alternative investment strategies model.
using personal money rules that engage The NSIC is a company teaching invest-
Personal Photographic Artist four asset-acceleration principles, through ment and economic alternatives.
three financial growth stages. In addition to its readily applicable
Ritchie, who has regularly attended real financial education, NSIC provides
estate clubs for years, chose to align him- resources, products, services and oppor-
self with the National Strategic Investment tunities through local and virtual investor
Corporation (NSIC). His new club, the clubs.
Cerritos Investor Education Club (CIEC), Ritchie is excited about CIEC’s launch
is the first California chapter. Ritchie’s and he credits Hettema’s office with
“Take Care, Keep Smiling” goal is to form a club with diversified providing him with the tools needed for an
investment strategies to provide his mem- association to succeed.
bers with “alternative investment strate- “ Not only does NSIC provide me with
gies, not just real estate,” he says. all the resources to start and manage
Ritchie has spent a lot of time and my club, but the NSIC model shows me
resources in developing his investment exactly how to successfully establish my
game plan. He is a David Lindahl graduate club step by step.”
and also learns through the Joel Block’s To learn more about NSIC, visit online
* Headshots * Portraits * Personal Photo Shoots
syndication system. It is at Block’s event www.ciec.nsicgroup.com and download
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tema. Ritchie is also a member of All For information about CIEC, contact:
Sam@SamGreenPhotography.com Cities Network, a collection of networking Roger Ritchie, Club Leader of the Cerritos
www.SamGreenPhotography.com groups. Currently, Ritchie is managing Investor Education Club, (714) 793-3167,
www.facebook.com/SamTheManGreen partner of an investment syndication group email@example.com
Realty411Guide.com PAGE 46 • 2010 reWEALTHmag.com
Triple Net Houses, pg. 9
They pay no expenses. If they News about Julian’s NNN
finance the house for example model has spread quickly large-
at 5.5% or 6%, you’re going to ly through referrals and online
get that spread using the bank’s connections. “We have a blog,
money. If you buy a house for we do webinars, we do confer-
$60,000 and you put down ences just like your magazine.”
20%, $12,000 on the $48,000 Now that Julian has estab-
you’re borrowing, you’re going lished his NNN presence in
to make 3.5% but that’s not us- the investment market, his new
ing any of your money. You’re goal is to expand conserva-
not making 3.5%; you’re mak- tively. He explains: “We want
ing an infinite return. It’s the to grow fiscally responsibly.
bank’s money. Now you’re go- This year we’d like to do about
ing to get 9.1% on the balance, 120 houses, about 10 a month.
“This year we’d like to do about
120 houses, about 10 a month.”
for a total return of 17%.” We’re not quite at that target
Obviously, a lot of planning but we’re real close. It’s grow-
went into Julian’s investing ing in the right direction. Next
modes. His personal experi- year we’d like to do 150 to 160
ence as an investor started in houses.”
1975, and he’s been a real es- As they continue to grow
tate broker since 1979. Born in and prosper, Julian expressed
New York City, he moved to his thoughts about expand-
Dayton with his parents while ing to other locations or cities.
he was in high school. He later “In another year or so we plan
attended Wright State Univer- to move to Cincinnati, which
sity. Julian has been married would be the logical city. It is
for 36 years. His wife is a re- about 50 miles south of us with
tired public librarian who still similar demographics.”
substitutes when needed. They In real estate investing, slow
have one son, Paul, who is 26 and steady wins the race, and
and is trained as a chemical en- Triple Net Houses would win
gineer. the Innovative Risk Reduction
“But guess what?” Julian Award if they were to establish
asks, and proudly replies: “He’s one in our industry.
working for us now as an op-
eration’s manager. It’s a family For more information, please
affair.” visit ww.TripleNetHouses.com
Realty411Guide.com PAGE 47 • 2010 reWEALTHmag.com
any Investors gamble to invest, Woo says he bases his compa- the CEO of ER Real Estate Investments.
their financial future ny’s approach on solid, factual data. “Our Reynolds purchased her first rental at age
and retirement dreams team constantly seeks out markets that 24 for $10,000 cash. Since then, she has
on capital appreciation. can weather the storm based on strong job been involved in numerous transactions
Michael Woo, chairman growth and economic or population expan- and she is also currently an out-of-state in-
of Longfin Investment Solutions, thinks sion.” vestor. Reynolds enjoys assisting others in
that is unwise. “It’s time to get paid month- Woo began his career as a real estate also maximizing their potential through the
ly instead of gambling on a 20-year pay investor in 1995. Before eBay was ever in purchase of passive income real estate.
out,” he says. the picture, Woo sold and marketed collect- “My core belief is that real estate creates
As chairman of Longfin Investment Solu- ible toys as a way to raise capital for his wealth, and wealth is effectively amassed
tions (LFI), Woo created a turn-key invest- first investment. In two years, Woo raised through real estate acquisitions,” she says.
Stop The Gambling!
Why Bet on Future Appreciation When You Can CASH FLOW Today?by Lori Peebles
ment system for investors who seek cash $50,000, a down payment for his very first Both Woo and Reynolds have great na-
flow in emerging markets. “Our properties property. Since then, Woo has been in- tional resources accumulated from years of
are totally rehabbed, with existing property volved in hundreds of transactions. personal relationships, which they pass on
management, and often His skills in to their clients. They also have established
already have renters in Mike Woo with “Rich Dad, Poor Dad” the industry did relationships with private equity lenders
place,” Woo says. “Our founders, Robert and Kim Kiyosaki not go unnoticed. for financing. “Lending is not a problem
average NOI (Net Op- In February, Woo for LFI and we do not want financing to be
erating Income) rate of was honored as the reason you do not take action toward
return is between 25% the recipient of investing,” says Woo.
to 36% ROI (Return Rich Dad edu- LFI also created an affiliate marketing
on Investment) with cation’s Hall of partner program, which offers profit shar-
10% to 12% cap rates. F a m e Aw a r d , ing.
Why wait for tomor- presented by Reynolds ex-
row when you can cash “Rich Dad Poor plains, “Being a
flow today?” Dad” author marketing partner is
An avid fisherman, Robert Kiyosaki. a great way to join
Woo, who is a native Woo was hon- the team and partici-
of Southern California ored for his role pate on many great
and graduated from Torrance High School in increasing financial intelligence. In ad- deals. As a market-
and San Diego State University, named the dition, he was acknowledged for dedicat- ing partner, we offer
company Longfin to commemorate a fish- ing his time to helping others improve their great referral fees,
erman’s special name for the albacore. own lives. equity partnerships
“Albacores are renowned by sportsmen all “We teach real estate investing funda- and other benefits.”
over. They are a much sought-after game mentals, including having the right mind- Lately, Woo and Reynolds have been
fish with attributes of being fast-moving set and goals,” Woo explains. “We want to busier than ever attending many network-
hunters that operate together to achieve make each investor a better person and ex- ing events and also hosting their “Stop
goals,” he explains. tend their investment dreams further than the Gambling” seminars for the public in
Woo’s individualism also positively im- they could have ever imagined.” Southern and Northern California. LFI is
pacts his investment philosophy. In addition, Woo says they teach inves- also organizing investment road trips to In-
For example, while many investment bro- tors to understand demographics, locations, dianapolis, one of their target markets.
kerages only deal with one specific type cash flow and ROI.
of property, such as single-family homes, Recently, Woo expanded LFI and added To learn about the “Stop the Gambling”
Woo’s investment strategy is to find deals a dynamic partner: Erica Reynolds. She educational seminars, contact Longfin
across the entire market spectrum. has been appointed as vice president and Investment Solutions at: (949) 388-0678.
Instead of letting headlines predict where marketing partner. Additionally, she is also Visit LFI at: www.longfininvestments.com
Realty411Guide.com PAGE 51 • 2010 reWEALTHmag.com
The Solution for Homeowners who
have Underwater Mortgages
by Shahid Habib and Ketan Naran
across the U.S. are
out due to a decline in the
value of their homes and
the fact that they now owe
the bank more than their
property is worth. However, up-front fees to homeowners. It
there is hope through an option offers a solution for both banks
known as short pay refinance, as well as for the homeowners.
which is a great solution for The homeowners get to keep
them, if they qualify. their home with a lower princi-
According to a report pub- pal balance and lower monthly
lished in May 2010 by First mortgage payments more in
American CoreLogic, a real es- line with the current value of
tate information company based their home, and the banks get a
in Santa Ana, Calif., “more than chance to “clean-up” their bal-
11.2 million, or 24% of all resi- ance sheet by getting a property
dential properties with mort- completely off their books.
gages were in negative equity Banks are becoming more
at the end of the first quarter willing to accept a short pay
of 2010.” Out of that number, refinance especially if the bor-
in California alone, more than rower is current on their mort-
2.4 million homes, or one third gage but is experiencing some
of all mortgages, have negative type of short-term financial
equity. difficulty or the interest rate on
The underwater mortgages the borrower’s current loan is
and negative equity pose a about to increase.
roadblock to a housing recov- A short pay refinance also
ery because the underwater provides the bank with an infu-
mortgages are more likely to sion of “cash,” which increases
fall into default leading to a po- their ability to invest in other
tential foreclosure by the bank. opportunities or to lend out.
Most banks have already been Banks are in the “lending”
taking big losses on foreclosure business and not the real estate
and short sale properties and business.
are considering other options Unlike a loan modification or
as well. a short sale, which sometimes
Short Pay Access, a company requires a borrower to be delin-
based in San Ramon, Calif., quent on their mortgage pay-
is able to help homeowners ments, the short pay refinance
anywhere in the U.S. through program follows standard lend-
the best short pay refinance ing guidelines and only works if
program available today. The the borrower has a clean recent
company does not charge any mortgage payment history.
1. The mortgage needs to be their home with a new lender at
more than the current market
value of the home.
the current market value.
The Short Pay Access team
Do You Feel
2. Borrowers need to be current
on their mortgage – no late pay-
consists of experienced nego-
tiators who have carefully built Trapped by Your
3. The borrower’s credit score
working relationships with
lenders. The negotiating team Current Mortgage
must be 620 or better.
4. They must have verifiable
is well versed in the lender’s
requirements and preferences and the Loss of
Your Home's Value?
income. and uses this experience to help
5. The prop-
erty must be
the borrower’s Let us help you
dence. 'Short Pay Refinance'
Short Pay a new option with
with the lender NO Upfront Fees!
in order to complete the short the homeowner without wast- (This is not a loan modification or a short sale)
pay refinance and gets the lend- ing any time dealing with un-
er to write off a portion of the knowns.
loan amount. A short pay refi-
nance gives homeowners the
ability to refinance their homes For more information, contact
at the fair market value. The Short Pay Access online at
process involves paying off the www.ShortPayAccess.com or
current lenders loan at fair mar- call (925) 309-6109 for a no
ket value and then refinancing obligation free consultation.
It could help you to
Keep your home
Lower your principal balance
Lower your monthly payment
Eliminate Negative Equity
ket to lawyers who specialize
in family law, estate planning
and probate. Also, don’t over-
look paralegals who can be a
wonderful source of leads.
#3: Your Target Zone: For
maximum success, farm your
area just as a REALTOR
would. Posting signs around
your farm area, as well as
displaying a clever advertise-
ment on your vehicle can lead
#2: Make Many, Many Offers!
Contact us today to
An aggressive investor should find out if you qualify
be making at least 10 offers a
day or 200 offers per month.
How do you compare? Well,
then please don’t complain www. Short Pay Access .com
that you can’t land a deal!
Realty411Guide.com PAGE 53 • 2010 reWEALTHmag.com
tional roadblocks, such investors annually, he says they can deliver
as the number of existing properties at deep discounts.
mortgages one has, or a Additionally, since Reedy knows that
lack of seasoned funds cash flow and built-in equity at purchase are
or less-than-stellar credit primary components of a great investment,
scores are simply non- he says they “are willing to leave enough
issues with their private profit in the deal for the client to have great
financing program. cash flow and success, which leads to re-
by Linda Pliagas & Lori Peebles So what’s the catch? A larger-than-normal turning clients and more business.”
downpayment for a residential purchase is To handle the management of his own
STOP! Before you purchase
that shiny, new luxury
vehicle — the one that’s going to plum-
required (30% to
50%), which is ac-
tually a percentage
rentals, as well as
Craig Jennings and Jim Reedy. t h e b u r g e o n i n g
empire of his cli-
met in value as soon as it’s driven off the that is common these ents, which now
lot — think about buying a rental income days in commercial number close to
property instead. real estate transac- 1,000 properties,
That’s right, for about the same price tag tions. The property Reedy relies on his
as a 2010 Mercedes-Benz M-Class (MSRP: is then paid off in 60 staff of 15, which
$45,700), an investor can purchase a rental months (amortized includes four full-
property in Memphis, Tenn, instead. Plus, in seven years). In time leasing agents
they can pay it off completely in five years the meantime, in- and numerous
— the same time as the car. vestors can expect a independent con-
This turbocharged investing structure, bit of monthly cash tractors.
Keep the Older Car|Buy a Rental Instead
coined the Short Term Retirement pro- flow to help them maintain the property. In 2008, Craig Jennings was recruited
gram, is marketed by Jim Reedy, CEO of It’s a bullish investing program offering to handle investor relations. Jennings es-
Memphis Investment Properties, LLC, a easy terms and, best of all, no restrictions. tablished himself with Reedy as a talented
full service real estate investment broker- When Reedy found out about the pro- wholesaler, often providing Reedy with
age and management company. gram, which was developed by Robert outstanding deals for his clients.
Memphis Investment Properties (www. Feol, a local real estate finance expert, he Shortly after, the team was joined by Curt
memphisinvestmentproperties.net), found- knew he wanted his company to have ex- Davis, who is now a leading sales execu-
ed in 1985 by Reedy and his wife, Debi, clusivity. Reedy says the program was so tive for the company. Together they field
is an exclusive provider for the Short Term good, he wanted to keep it all to himself. requests and answer questions from in-
Retirement (STR) program in the Memphis Real estate has been Reedy’s passion and vestors around the nation, and even from
metro area. focus for 34 years. He majored around the globe.
The team relaxes after a meeting.
The most in real estate at the University When asked where the majority of Mem-
enticing as- of Memphis and has been sell- phis Investment Properties’ clients come
pect of STR ing homes since his senior from, Reedy quickly replies that most of
is the speed year. their investors come from the West Coast,
in which an “I fell in love with real estate California in particular. The East Coast also
investor can during college,” he admits. brings in a lot of activity. Tennessee is also
have their “The sky was the limit.” gaining popularity with investors living
rental com- Reedy says that from per- outside of the United States, as well as with
pletely paid sonal experience he knows recent U.S. immigrants. Reedy says lately
off, which investing in real estate is more he is seeing “lots of foreign activity.”
then maxi- lucrative than working as a For Reedy and his team, real estate in-
mizes cash REALTOR®. His family cur- vesting is not just a business, it’s a lifestyle.
f l o w. T h e i r rently own and manage an In fact, his wife, Debi, is chief operation
program also offers tremendous flexibility, impressive personal portfolio of more than officer, and one of Reedy’s five children
enabling people who normally would not 300 single family rentals. is also a top producer in her market in the
be able to qualify for a property a chance Because Reedy and his team are active
to build wealth by owning rentals. Tradi- real estate investors, servicing hundreds of Continued on pg. 62
Realty411Guide.com PAGE 55 • 2010 reWEALTHmag.com
by Crystal Han of 360 Investments™ | edited by Scott C. Seckel
Who’s On Your Team?
hese days with the current economic well-earned commission. available to your type of business.
and credit crisis, it’s not what you •A mortgage professional is essential. They •Get an insurance agent who will issue your
know, it’s who you know. 360 In- can be a direct lender, bank or mortgage policies for the best protective coverage in
vestments™ realizes that investing in real broker. Shop around until you find one who the state where you own real estate at the
estate is a team sport. That’s why we have can tackle creative ways to finance a deal. best prices. Always compare rates.
built local power teams in major cities Ask about their loan fees and programs. •A reliable general contractor will give
across the country. Having the right indus- It’s critical to find out about their qualifi- you work estimates and project bids. These
try professionals on your team will make cations, seasoning and percentage-down quotes are tools with great negotiating
all the difference in your investing success. requirements. power. Request a copy of their license and
Here is a list of important team members to These professionals can also lead you to check with the state board to make sure the
have on board: private and hard money sources. Always contractor is in good standing. Get plenty
•Get a mentor, with a proven track record, ask for a Good Faith Estimate (GFE) and of references and do not pay in advance.
who has successfully acquired the type of compare statements. Find out their average •Locate a certified property inspector who
real estate investments you want to have. time to fund and close a deal since time is will inspect your properties and provide a
money! detailed inspection report and photographs
•The right title, escrow or of their findings. The report can be used for
closing attorney, depending negotiating the purchase price. It can also
on the state, is your best be used as a walk-away clause.
friend. Interview several •Appraisers are priceless in this current
until you find one that un- market. They provide market values, com-
derstands unconventional parable sales, and draft up appraisal reports
ways to transact real estate on their findings. Please note, with the new
deals. Ask them if they are HVCC guidelines, lenders choose their
familiar with assignments, own appraisers when determining value for
double or simultaneous lending purposes.
closings. You want some- •Property managers and management com-
one who can draft up notes, panies are the key to long-term investing
deeds of trust or mortgages. success. Make sure to get lots of referenc-
Title representatives can es from other property owners. Review the
also provide you with ac- property management agreement carefully
cess to title reports, foreclo- and make sure you understand everything
sure listings, and farming clearly. Find out the management fee, ad-
packages made up of mail- vertising costs, service call fees, average
ing lists and labels for mar- turn-over costs, vacancy rates, eviction
keting purposes. rates, total number of units managed, num-
•You will need several at- ber of years in business, term of agreement,
Your local real estate investment associa- torneys on board, who specialize in differ- monthly statement schedule, online system
tion, abbreviated as REIA, may be a good ent areas. Engage an asset protection at- accessibility, and direct deposit options.
place to find a mentor. Make sure you con- torney who understands entity formation, a Always retain copies of lease agreements
tribute to your mentor if you are not pay- local real estate transactional attorney who with tenants. It’s your job to manage the
ing for their time to teach you and take you can review your contracts, and an estate property manager!
under their wing. planning attorney to pass your inheritance •Last, but certainly not least, get an ac-
•Find a REALTOR® who can give you in- on to your heirs without costly and time- countability partner and a local network of
formation about the local market. consuming probate proceedings. investors who will provide you with ongo-
A REALTOR® can provide you with •Real estate investments offer huge tax ing support and updated information on
comparable sales (COMPS), current mar- benefits. It is important to get a highly other industry professionals, the markets,
ket values, average days on market (DOM), qualified tax professional, a certified pub- and other investment opportunities.
appreciation/depreciation rates, and other lic accountant (CPA), or a tax attorney who Building a profitable real estate invest-
valuable information. Provide leads to your understands the tax codes. Choose a pro- ment portfolio takes a strong team, and
REALTOR® by sending potential clients fessional who also invests in real estate. more importantly, a great team leader who
their way and make sure they receive their They will know the maximum deductions selects the right team members!
Realty411Guide.com PAGE 57 • 2010 reWEALTHmag.com
The Ultimate Cash Flow Buying Tour, pg. 37
The Clothiers discussed their own per- about $350 monthly. very first day of the tour.
sonal story of their quest for passive income The elegant banquet room where the Kent Sr.’s luring promise that I would
and presented their research on the market. education took place was filled with many never see anything quite like this proved to
Then they introduced the members of their Californians like me, including a young be true. The action that was taken on that
team. After a brief networking break, they couple from Burbank who rented a rec- day was mind-blowing. A total of 29 homes
passed out a large, white sealed envelope reational vehicle and drove nearly 2,000 were sold, all sight unseen. I was captivated
with the information everyone was waiting miles to buy a property in Memphis. by the volume of deals done as well as the
for: The Deals. “We left on the Fourth of strategies they spoke about, such as their
Guests were more than July and plan on touring dif- guerilla-marketing leasing system.
eager and ready to buy a ferent cities for two weeks Here is the creative way they fill vacan-
cash flow property based after this,” Declan and Shaun cies: MemphisInvest.com hires multiple
on an address, a photo- Hoare said. The new investors leasing agents on commission to show and
graph and numbers. Most purchased a three-bedroom, rent out their client’s property. A total of
rental homes cash flowed two-bath brick home on the four signs are placed on the lawn, each with
Guests listen to Kent Sr. a different number, each reaching a distinct
agent. Competition is created. Each leasing
agent is on high alert: If they want to get
paid, they have to be the first to answer the
phone and show the property.
Another management technique that re-
ally stood out is the system they have of
calling their clients just to touch base. Once
a month, investors receive a status report,
even if there is nothing wrong with the
“If a client has to call us to check on their
property, then we are not doing our job,”
Chris explained to the audience.
Our group saw their four-sign leasing
AUGUST SCHEDULE system on the second day of the tour. On
that day, we hit the road on two buses and
August 4, 2010 August 24, 2010 saw numerous sample properties.
6:30 to 8:30 pm 6:00 to 8:00 pm We saw houses in all states of renovation,
Pasadena Library Valencia Library from the stinky and messy to the shiny and
285 E. Walnut St. 23743 West
Pasadena, CA 91101
fresh. The rehabbed homes featured hard-
Valencia, CA 91355 wood floors, soothing earth-tone colors,
August 5, 2010 new tile and new countertops. The quality
6:00 to 8:00 pm August 25, 2010 of their remodel is a testament to Kent Sr.’s
Torrance Library 6:30 to 9:00 pm perfectionism and attention to detail.
3301 Torrance Blvd. LA Real Estate After attending the tour, it became clear
Torrance, CA 90503 Investors Club that I was in the middle of one of the best
August 10, 2010
investing markets in the country, and in the
5:30 to 7:30 pm 3084 Motor Ave. presence of industry leaders. If your goal is
Angela Iacobini Los Angeles, to purchase a quality rental in a burgeoning
Library CA 90064 market and have it managed by a proactive
4900 Clark Ave. and creative team, then be sure to pencil in
Lakewood, the next The Ultimate Cash Flow Buying
CA 90712 Tour on your calendar.
Don’t Miss the Next Tour
* September 24 & 25 *
Space is Limited, Reserve Early
1-877-773-9998 or 1-901-751-7191
Realty411Guide.com PAGE 58 • 2010 reWEALTHmag.com
A Visit to 12 Rounds, pg. 30 Secrets from Sensei, pg. 30
More recently, an out-of-town owner of #4: Attorneys and Paralegals: Be
a vacant home began to receive citations sure to market to lawyers who spe-
from the city due to the blighted condition cialize in family law, estate planning
of a property she owned. The woman no and probate. Also, don’t overlook
longer had a need for the home, which had paralegals who can be a wonderful
been broken into and vandalized. Instead source of leads.
of having to pay additional fines or incur
#3: Your Target Zone: For maximum
a large expense to fix the abandoned prop-
success, farm your area just as a
erty, she opted to sell “as-is” to Sensei at a
REALTOR® would. Posting signs
45% discount, and Sensei flipped the prop- around your farm area, as well as
erty using a double-close technique to a displaying a clever advertisement on
rehabber. Sensei used no money, no credit your vehicle, can lead to success. Expertise:
and no loans, just pure wholesaling. Retail
Yes, a profit (typically larger than most #2: Make Many, Many Offers! An ag- Foreclosures
real estate transactions) will be made for gressive investor should be making Short Sales
wholesaling a property as it should be. An at least 10 offers a day or 200 offers Agreement for Deeds
per month. How do you compare?
Wholesaling #1: Piggyback Your Deals: Don’t be REOs
afraid to partner up and share your Auctions
“does not require deals with other wholesalers. The Subject-to
more wholesalers in your database, Lease Options
cash, credit or a the easier it is to share buyers and
sellers. Don’t be greedy and dishon-
6601 Owens Drive, Suite 245
est. Remember: Your reputation is
Pleasanton, CA 94588
more important than money. Once
equals NO RISK.” tarnished, it seldom can be restored. Tel: 925-460-8255
investor is providing a creative solution to GreenBlasts.com
the owner of a distressed property and/or Millions of Opt-In eMails Available “Obstacles are the things we
the owner may be distressed. Having a dis- The Largest Industry Database is Here!
see when we take our eyes off
tressed situation creates an opportunity for 310.439.1145 | firstname.lastname@example.org
the investor to help and profit as well. Serving Companies Since 2007 our goals.” -Zig Ziglar
Sensei reminds his devotees that in to-
day’s flooded foreclosure market, whole-
saling is a service that is needed more than
ever. Sensei’s mindset of placing people
before profit is the philosophy he carries
with him when he approaches any deal and
in his own dealings with people.
“Help first,” he stresses, adding, “You
will be blessed with rewards later.”
Keep the Flame Burning!
Log On to Realty411’s VIP Network
FREE to Join * LIVE Chat Available
Find Events, Deals, Friends & MORE
Questions? Call: 310.499.9545
Realty411Guide.com PAGE 59 • 2010 reWEALTHmag.com
David Lindahl, pg. 7 Knowing how to invest in apartments from taking advantage of the huge money-
without personally dealing with tenants is making potential that apartments hold.
them deals). I learned what they were look- essential to becoming a multimillionaire Misconception #1: Small investors
ing for in a property. And whenever I found investor. should start with single family homes be-
something in common among investors, I I never deal with tenants personally. I cause there’s less risk.
knew I was on my way to developing a sys- never personally fix leaky faucets. I don’t Apartments can be the safer way to get
tem for creating wealth with real estate. mow lawns. I turn all the landlord duties started. If your tenant moves out of a single
My first building was small three-unit over to management companies. A good family house, your property sits empty. The
flat. But it was a “profit snowball” that put management company makes you money mortgage isn’t going to stop until you find
everything in motion and would lead to an and should be viewed as an income genera- another tenant. However, if a tenant moves
avalanche of income. tor, not as an expense. out of an apartment complex, the income
Within six months I had nine proper- Today I control over 7,400 units. That’s continues to flow from other units.
ties. At the end of my first year, I owned 7,400 checks from tenants. My monthly Misconception #2: Apartments are more
11 small apartment buildings, giving me a cash flow is greater than what many people difficult and time-consuming than single-
positive cash flow of $9,700 per month. I make in a lifetime. family houses.
was motivated! But I almost never got started because Think of it this way… does buying a
of a few misconceptions that most newbie Porsche take exceedingly longer than buy-
Millionaires Are Not Landlords investors face. ing a Kia? No. It’s the same basic process.
It surprises some people when I say that With apartments, you use largely the same
my key to moving into the major leagues of 4 Misconceptions That Can methods as with single-family homes. And
real estate investing — what skyrocketed Cost You Millions where there are differences, I’ve developed
me from owning just a handful of small Some notions about investing in apart- systems that clearly spell out what needs to
buildings to controlling more than 300 ments are as outdated and flat-out wrong as be done and when.
properties — was my decision not to be a thinking the world is flat. Yet they continue Misconception #3: You need stellar per-
landlord. I would do no “hands-on” work. to hang on and stop thousands of investors sonal credit and high income to buy apart-
ment houses. most every month. My systems
When you buy apartment are proven to build, protect,
houses, lenders focus on the and ensure wealth — and I’ve
cash flow of the building, not grouped them in a one-stop
Proven to Work!
your personal income stream. program called Apartment
If you find a building with a House Riches.
strong positive cash flow, a I’ve made it simple for al-
building that pays off the loan most anyone to use my strat-
without relying on you, then egies to find properties and Rental Property Analyzer is a great piece
you have a the foundation of vi- structure wildly lucrative deals. of software designed to eliminate the
able deal. The math is not com- You have a roadmap for mak-
plicated. I’ve created a work- ing buckets of money in today’s
guess work out of purchasing property
sheet that lets me know within market just as I do.
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MMG CAPITAL, pg. 39 properties at once for quick best-buy decisions
of our terms are between 12 •Accounts for hidden costs to prevent
Whereas the majority of and 36 months. costly rehab surprises at the end of the job
banking institutions sell their •Provides estimate of current property
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on doing business differently. is weathering the storm that has •Supports up to 20 financial options
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for comparison purposes
of their private money is com- sector, unleashing a tsunami of
parable to that of most other bad debt. In fact, the California •Has charts, graphs, and tables for cash flow
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Invest in the Rental Property Analyzer
Realty411Guide.com PAGE 61 • 2010 reWEALTHmag.com
Short Term Retirement, pg. 55
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Realty411Guide.com PAGE 62 • 2010 reWEALTHmag.com