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                                     Vol. 1 • No. 2 • 2011

  Chris Gleason of
  MMG Capital
  Offers His Investors
  High Yields, Low Risk

  When Do You Grow?
  When Do You Hold?
  Take a Look Inside:
  Cash-Flowing Rentals
  From Around the Nation
  with Tenants in Place!

  Tips for Success in
  Business & Real Estate

   Photograph by Sam Green
                                                                      New for 2011
                                                                   Brand New Construction
                                                                   4/2/2s - Renters In Place
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and Cashflowing                                                        my IRA consistently. I have known
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Start with a major metropolitan area like Indianapolis, Indiana
                                                                      10 years and they deliver exactly
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Cities.” Add a thriving corps of businesses and universities          now in the process of buying his
whose workers need affordable housing and you have a climate          first investment property through
ripe for generating substantial returns on rental properties. We      Realestatedone4u.”
                                                                                                 Mike K
acquire the home, complete necessary rehab to yield top rents,                            Columbus, Ohio
then use our over 15 years of property management experience
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good repair providing positive cash flow.                              “A professional team that under-
                                                                      stands the investor, because they
                                                                      (and their families) own the same
• Complete turn-key solution: property acquisition, rehab,            properties I do!”
  management, and property disposal.                                                              Steve N
                                                                                               Chicago, IL
• Over 15 years property management experience.
• Indianapolis is the State Capital and home to companies like
  State Farm and Eli Lilly, the Indy 500 and Superbowl 2012.          “My wife and I simply cannot
• Gross rents 13-15% consistently. Our clients experience             afford another ten years like the
  positive cashflow using 15 year mortgages and use as college         past ten years. It was time to take
  tuition solution.                                                   control of our retirement. We are
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• Specializing in IRA/Roth IRA cash flowing properties                 stop making excuses and start
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• #1 Provider for ‘Turn-Key & Tax-Free’ Income                                                     Tom A
 by                                                                  Indianapolis, IN

     (614) 323-3739 • •
on’t understand.
 much wealth has
 the past decade.
 e to go it alone,
                 -The Million Dollar-

               Sweet SPOT
  Network brings
rienced investors
hare information
  each other.
  articles, videos,
s and downloads Kathy Fettke

e our members to
vesting decisions no secret
                t’s                                       first offered $8 mil-
 nce-in-a-lifetime banks
                that                                      lion but were denied.
                   w o u l d                              Six months later we
                   rather buy                             offered $3 million and
on, visit:         Treasuries                             it was accepted. We
           today than lend                                syndicated this proj-
           to     homeowners                              ect into 60 shares of
           or investors. Why                              $50,000 each and were
           not? They can bor-                             able to purchase the
           row interest-free                              property at auction —
           from the govern-                               which eliminated liens
           ment and then                                  and liability. Profits are
           turn around and “lend” back          expected to be quite astound-
           to the government for a profit.      ing since the town homes only
           It sounds like another illegal       need finishing work and con-
           scam that will ultimately hit the    tracts are already in place for
           American taxpayer — a pretty         end-buyers.
           common story these days.                While we’re still finding in-
              We can get mad or we can get      credible deals in single-family
           even. Either way, if we want to      homes around the country,
           protect ourselves and our chil-      we’re seeing the steepest dis-
           dren, we have to learn to play       counts in the larger units that
           their game. Since financing          most individual investors can’t
           availability is tighter than ever,   afford. Apartment buildings in
           that leaves us a huge opportu-       Texas are another sweet spot
           nity to get great deals.             that we are aggressively target-
              The sweet spot right now is       ing now.
           with properties that are out of         If you’re tired of making mul-
           the average investor’s reach         tiple offers and competing with
           but too small for hedge fund         hundreds of other investors,
           investors. There is just not a       consider joining our network
           market for $1 million to $10         (it’s free) and team up with us
           million deals. Distressed prop-      on the big stuff that has higher         N ATIONAL R EAL E STATE
           erties in this range are heavily     discounts and less competition.
                                                                                        I NSURANCE G ROUP , LLC
           discounted, giving huge returns      You can also download your
           for those who can manage to          free report on “7 Steps for New
           acquire them.                        Real Estate Investors” on our
              At Real Wealth Network, we        main page:
           have over 6,000 members so 
           deals come across our desk all       Kathy Fettke is the host of the
           day long. This gives us the abil-    Real Wealth Show, Saturday
           ity to cherry-pick the best ones.    mornings at 10 to 11 on 1220
           For example, we were told            AM KDOW. For information,
           about 27 almost-finished wa-         contact: 925-280-2830 or 888-
           terfront townhouse in Portland       RWNETWORK (796-3896) or
           in the highly desirable Pearl        Kathy@RealWealthNetwork.
           District. The construction bank      com DRE License # 01509755
           failed so the developer couldn’t     Real Wealth Network has ex-
           finish the work. The FDIC took       panded with offices now in
           over the $12.8 million note. We      Malibu & Walnut Creek, CA.
              PAGE 5 • 2011     
Real Estate Investors Store
Ways to make money through investing!
 Why The Real Estate                                 What we can o er you:                   Who is Fred Tingley?
 Investors Store?                   A chance to place yourself at the                        Dr. Frederick Tingley has been
 Chances are you've thought about forefront of a giant wave of                               an investor for 30 years and a
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 job isn't covering all of those    sweeping across America and make                         Tingley is wiling to take on
 expenses nor is it getting you to  an unbelievable income!                                  students on an individual basis.
 those dreams you have of paying One of the nation's most sought a er
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 For more info call: 801-294-7015

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                                                                                                                                               Everyone Can Become
                            &                                                                                                                  AN ENTREPRENEUR
    Real Estate

                                                                         Dave Lindahl in front of one of his numerous multifamily complexes.
                       Linda Pliagas
                 EDITORIAL STAFF
                       Lori Peebles
                        Matt Malouf
                       Anita Woods
                    Brianna Bertrand
                   COPY EDITORS
                       Lorie L. West
                        Sam Green
                      John DeCindis
                        Sam Sadat
                       Kathy Fettke
                       Dave Lindahl
                    Charles Salisbury
                  Kelly Global Marketing
                 EVENTS & EXPOS
                    Lawrence Ruano
                 Lori and Mike Hampton
                                                                                                                                                                    by Dave Lindahl

              Emma Krull - The Dab Hand
           Professional Distribution Solutions                                                  here is a common belief that only                                           the person dreams about.
                     1.877.418.6500                                                             few people that have the desired                                               For instance this thinking can be
           NATIONAL DISTRIBUTION                                                                attributes can be entrepreneurs,                                            about what is the purpose of coming to
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                                                                                                but this is not true. Entrepreneur-                                         this world? What can I give to this world
                   PUBLISHED BY
                 Manifest Media Partners                                             ship is for everyone and there are numerous                                            and what best can I do for people? And
             Nikolaos K. Pliagas - Chairman                                          reasons for supporting this statement.                                                 questions like these can help you drive
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     Published for Investors by Investors
 Realty411 and Real Estate Wealth magazines are published in
                                                                                                                                               future and thinking optimistically is the
 Los Angeles by Manifest Media Partners (mailing address: 4221
 Neosho Ave., Los Angeles, CA 90066). Publishers are not re-                                                                                   right way for achieving your dreams...
 sponsible for unsolicited manuscripts, photographs and/or other
 materials. ©Copyright 2010. All Rights Reserved. Reproduction
 without permission is strictly prohibited. The opinions expressed                   they want to fulfill or at least have a desire                                            One could learn about its strength and
 by writers are not endorsed by the publishers and/or editorial staff.
 Before investing in real estate, seek the advisement of a trusted fi-               to improve their quality of living. This per-                                          weaknesses by searching his personal
 nancial adviser, attorney or tax consultant. Real estate investing is               ception of human beings leads to encour-                                               history in the past in which he has a
 risky and may result in loss of capital. Please invest responsibly.
                                                                                     agement for working hard and getting what                                              number of experiences that caused him
             Connect to our virtual network today!                                   they want, this perception is commonly                                                 difficulties and obstacles in his way of
                                                                                     known as intuition. It is a kind of poten-                                             success. From these past experiences the
                                                                                     tial in human beings that leads to creative                                            person could learn not to repeat his mis-
                                                                                     imagination.                                                                           takes in the future and to use his weak-
                                                                                        Human beings are the best creation of                                               nesses as his strength.
                                                                                     God that is given the power of creative                                                   This is the common thinking of ev-
                                                                                     thinking and through this thinking they are                                            ery person that looks into his past and
                                                                                     able to do a lot of creative tasks. This cre-                                          gets out his mistakes, but one thing that
                                                                                     ative thinking can be from the past, present                                           differentiates an entrepreneur is that he
                                                                                     and future and can relate to anything which
                                                                                                                                                                                                Continued on pg. 46                                                                                                                                  PAGE 7 • 2011                               
              NOTICE                                                                      Take Advantage of
  Your time to qualify for one of the
  Your time to qualify for one of the
  largest real estate tax incentives in
  largest to qualify for one of the largest
  Your timereal estate tax incentives in
                                                                                         Massive Tax Deductions
                                                                                          Invest in the Go Zone, Before It’s to Late...
  U.S. history is almost up. If you would
                                                                                                  fter six years of Go         number of reasons: (i) Timing;
  U.S. history is almost up. U.S. history is
  real estate tax incentives in If you would                                                      Zone initiatives sanc-       Go Zone tax incentives end
  like to turn federal income taxes that
  like to turn federal income taxes that
  almost up. If you would like to turn federal
                                                                                                  tioned by the federal        December 31, 2011, so there
                                                                                         government, the oppor-                       is a short window to
  you’ve already you’veover the last 5
  income taxes that paid over the last 5
  you’ve already paid already paid over                                                  tunity to turn taxes into                      take advantage of this
  years into equity in the nations top
  the lastinto equity equity in the nation’s
  years 5 years into in the nations top
                                                                                         cash-flowing equities                           tax opportunity, (ii)
                                                                                         will soon come to an                            The general economy
  emerging market, contact us imme-
  emerging market, contact us imme-
  top emerging market,contact us immedi-
                                                                                         end.                                             of the greater Biloxi
                                                                                           Individuals seek-                                  (Go Zone) area is
  diately. deadline for incentives is quick-
  ately. The The deadline for incentives
  diately. The deadline for incentives                                                   ing tax relief and                                    growing quickly
  is 12/31/2010. Inventory limited.
  ly approaching. Inventory is is limited.
  is 12/31/2010. Inventory is limited.                                                   an opportunity to                                     because of the
                                                                                         increase their real                                   Go Zone incen-
                                                                                         estate portfolios will                            tives and the real es-
                                                                                         need to hurry as one                    tate market are strong because
                                                                                         of the greatest tax-saving pro-       of the area’s growth.
                                                                                         grams of all time will be expir-
                                                                                         ing this year.                        Q: They say, “Time is of the
                                                                                           To make sure we provide             essence,” but the Go Zone
                                                                                         readers with the latest news on       Opportunity really is time
                                                                                         the Go Zone, we recently inter-       sensitive, please explain.
                                                                                         viewed Brett T. Immel, a part-        Immel: The Go Zone ends
                                                                                         ner with Hanover Companies            December 31, 2011, therefore
                                                                                         LLC, the leader in Go Zone op-        property that is Go Zone eligi-
                                                                                         portunities.                          ble, new construction/first use,
                                                                                           Since 1969, the principals          has to be placed in service and
                                                                                         of Hanover have been assist-          closed by the investor before
                                                                                         ing clients in creating wealth        the end of the year. Most clients
                                                                                         through real estate as investors,     are utilizing bank financing and
                                                                                         fund advisors, property manag-        turn times with lenders are on
                  Positive cash flow
                  Positive cash flow
                Positive Cash Flow                                                       ers and developers. Read on to
                                                                                         learn how to take advantage of
                                                                                                                               average 45 plus days. Because
                                                                                                                               of the time limitation, it’s im-
               Rated #1 Emerging market
               Rated #1 Emerging market                                                  the Go Zone, before it’s to late.     portant to make a quick deci-

   Rated #1 Emerging Market
                                                                                                                               sion and not delay the process.

           CALL NOW
                                                                                         Question: Why is Hanover
                                                                                         concentrating all their efforts       Q: Besides the tax benefits
                                                                                         in the Go Zone right now?             available, this area in Missis-

          CALL NOW
                                                                                         Immel: The Go Zone is actually        sippi is experiencing consid-
                                                                                         the Gulf Opportunity Zone and         erable growth. What factors

                                                                                         was created by legislation, to        have contributed to its surge
                                                                                         provide certain tax advantages        in population?

                                                                                         to companies and individuals          Immel: Biloxi, Mississippi, has
                                                                                         willing to invest in the rebuild-     seen considerable growth and
                                                                                         ing of the qualified tri-state area   many sectors of the market have
                                                                                         most affected by Hurricane Ka-        contributed. Jobs, jobs, jobs is
 TIONS. WE MAKE NO REPRESENTATION AS TO AN INDIVIDUAL OR PROPERTIES ELI-                 trina.                                all that we see and it has a di-
                                                                                           Mississippi is the last state in    rect affect on real estate. When
INVESTMENT GOALS AND TAX LIABILITIES DIFFER FOR EVERYONE. GO ZONE INCENTIVES AND         which this special tax incentive      Hurricane Katrina hit in 2005,
DEDUCTIONS MAY DIFFER. IN TERMS OF GO ZONE QUALIFICATIONS, WE MAKE NO REPRESENTA-        is available. The incentive itself    it wiped out about 20 percent of
TION AS TO AN INDIVIDUAL’S OR PROPERTIES’ ELIGIBILITY TO RECEIVE GO ZONE BONUS DEPRE-    (including Mississippi) will end      the housing sector when other
ELIGIBILITY FOR GO ZONE BONUS TAX DEDUCTIONS OR OTHER INCENTIVES.                        soon. Hanover has been con-           markets saw overbuilding and
                                                                                         centrating in the Go Zone for a       excessive supply. Markets like                                                              PAGE 8 • 2011                                            
Miami and New York City currently have
so much existing supply that absorption
levels are five years plus, meaning it will
take over five years for this inventory to be
sold. This is not the case in Biloxi.
  Thirty-five percent of the market is made
up of government-related jobs, mainly be-
cause of Keesler Air Force Base. Keesler
had a $1.1 billion economic impact on
Biloxi’s population of 250,000.
  Buying real estate close to a military base
is never a bad idea because as log as the
base is active, there will always be consis-
tent government funding and jobs being
created. Tourism provides another thirty

                                                       National Real Estate Insurance
                                                          Group & Affinity Group
                                                       Management Combine Forces

                                                         ational Real Estate Insurance         buy-and-hold investors and fix-and-flip in-
                                                         Group/Affinity Group Manage-          vestors.
                                                         ment has had a unique approach           NREIG/AGM is perhaps so uniquely de-
percent of the market, mainly because of        to meeting their clients’ insurance needs      signed and suited to meet their customers’
the casinos.                                    since 1999, and it’s paying off for them.      needs because Wrenn and another of the
  Biloxi is the second largest casino market       Their program allows people to pay          company’s owners, Tim Norris, are prop-
with over fifteen land-based casinos (in-       month-to-month for the coverage they           erty investors themselves.
cluding the Hard Rock and Beau Rivage)          need, giving them the ability to change           “We know the market countrywide be-
and more planned for the future. Casino         their plan to meet unique insurance needs      cause we have professionals we insure who
revenue is up for 2010 and the occupancy        as they come up. “We have the right cov-       make their living off of their local invest-
of the casinos has been very high.              erage at the right time with a one-minute      ments. We can access information about
  In addition to these two driving forces,      email to us to change, as needed,” says        various areas of most urban cities today
there are many corporations in the area that    owner Mike Wrenn.                              through local knowledge,” Wrenn says.
contribute to job growth, including North-         NREIG/AGM currently represents over         He adds: “As an example, there are unique
throp Grumman, Seaman Composites,               1,500 people and is adding approximately       features to the Kansas City and Memphis
Rolls Royce and many others.                    80 more a month; by 2012 they will have        markets that only locals know as it pertains
  Lastly, in July 2009 Biloxi-Gulfport re-      over 2,500 clients. The company consid-        to crime and safety of the property in more
ceived approval for expansion of the box        ers their rates competitive and claims the     inner-city locations. When we need help
and container port to essentially make it the   stability of their program over the last ten   understanding local conditions from street
largest box and container port in the U.S.      years to be one of their greatest strengths.   to street in certain cities, we know where
This is because of Biloxi-Gulfport’s cen-          Investors can choose different deduct-      to get it.”
tral location in the U.S. and the expansion     ibles and plans utilizing actual cash value       Besides relying on their local contacts,
of the Panama Canal (set to be complete         or replacement cost, depending on their        NREIG/AGM is actively involved with
in 2014). Bloomberg recently released a         needs.                                         many real estate groups around the country.
report that Mississippi would see housing          “The method we use to manage the in-        “We attend over twenty Real Estate Invest-
prices increase 16% by 2014 and Biloxi-         ventories for our insureds, their payment      ment Association (REIA) chapter meet-
Gulfport would be the market with the           terms and the right coverages account for      ings,” Wrenn says.
highest increase in prices.                     our success today,” Wrenn explains.               To that end, NREIG/AGM is planning
  The bottom line is that the market is            NREIG/AGM insures in all 50 states and      to incorporate video correspondence with
strong and stable. Low unemployment and         can easily follow their customers if they      their clients late next year. Soon customers
a consistent need for housing will contin-      move. The company has IT systems that          will also be able to manage accounts online
ue to grow this market for many years to        track each location and can account for es-    so that they will not be dependent on com-
come.                                           crowed payments by mortgage companies          municating with representatives during
                     — by Brianna Bertrand      during the year. Clients can pay through       business hours.      — by Brianna Bertrand
For more information about the Go Zone,         credit cards and are not charged for cover-
please contact Hanover Companies, LLC:          age the month a property may be deleted;       For additional information, please visit:
877-373-2805.                                   NREIG/AGM is therefore ideal for larger                                             PAGE 9 • 2011                                        
Our Real Estate Crystal Ball
                     by Richard Barrett           So, it appears that job growth encourages                                                                                                                                                                                       Sixty years later,

                                                  population growth.                                                                                                                                                                                                              the job market
           hat would you pay to know                                                                                                                                                                                                                                              has collapsed with
           where property values will                  People Drive Real Estate Values                                                                                                                                                                                            the demise of the
           grow in the next decade? How              The purpose of residential property is                                                                                                                                                                                       auto industry, over
much would a real estate “crystal ball” be        to provide places for people to live. More                                                                                                                                                                                      50% of the people have
worth to you? What if you had the “secret         people need more places to live. Growth                                                                                                                                                                                         moved away, out migration continues at a
formula” to find areas of growth?                 in Houston property values has been 19%,                                                                                                                                                                                        rate of 3,000 per month. Entire city blocks
  Well, you are in luck today, I am giv-          48%, and 106% for the past five, ten, and                                                                                                                                                                                       of houses stand empty and the city plans
ing away this secret formula for free! The        twenty years respectively. The decline                                                                                                                                                                                          to bulldoze square miles of houses. The
secret formula for growth in real estate val-     from the all-time high—the bubble drop—                                                                                                                                                                                         long-term, growth prospects for real estate
ues is…(drum roll, please…)                       has been only 0.73% in Houston. Compare                                                                                                                                                                                         in Detroit are weak until the city can restart
                                                  this to drops of 20-50% for properties in                                                                                                                                                                                       job growth and reduce its housing stock to
 jobs > people > property                         Phoenix, Los Angeles, Las Vegas, Miami,                                                                                                                                                                                         something nearer actual demand.
                                                  and other metro areas that suffered from
   That’s right, the secret formula is sur-       the boom/bust of the recent bubble.                                    The RBS Investor Index
prisingly simple. Jobs attract people, and           Demand for residential property depends                     To identify good metro areas for its in-
people need places to live. A growing job         upon not only the number of people in the               vestors, RBS Homes has developed the
market brings more people, and people             area, but also upon the housing supply.                 RBS Investor Index.
drive rental prices and real estate values.       Vacancy rates measures the demand for                          This index combines over thirty eco-
It’s so simple that many experts will deny        housing—the relative balance between                    nomic and demographic metrics to identify
this formula, arguing for special circum-         people and housing. Inflation rates drive               metro areas which will generate strong,
stances of their particular investing loca-       the housing price, as does the cost of lo-              long-term growth over the next decade.
tion. But, for the vast middle market of          cal government. Also, the property type—                For each of the top 500 major metropoli-
real estate, this simple relationship drives      single family, 1 to 4 multiple unit, or large           tan areas (MSA’s), the RBS Investor Index
long-term growth in rental prices and real        apartment—significantly affects the prop-               tracks changes in job formation, unemploy-
estate values. Let’s explore this relation-       erty value curve. So be careful in using                ment, population, average income, housing
ship in detail.                                   these metrics.                                          prices and housing stock.
                                                                                                                 I’d be delighted to discuss housing price
            Jobs Attract People                    Losing Population & Real Estate Value                  trends with you and to explore the trends
   Jobs attract people. As a simple state-          Detroit is perhaps the poster child of how for your own favorite metro area. You can
ment, that seems pretty obvious. But, let’s       the jobs > people > property formula                                  reach me at:
test that statement, using the major metro        works in reverse. Sixty years ago,                                       925-858-9017 or
                                                                                                RBS or
area of Houston, Texas, as one example.           Detroit was known as Motor City,               vest x
                                                                                             In de               
The unemployment rate of the Houston              king of the auto world and even                    Cr ys
                                                                                                           tal Ball es
                                                                                                The Estate V
metro area is 7.4%, almost 25% below the          king of the MoTown sound. The               for R
                                                                                                    eal                   Happy Investing,
national average.                                 Detroit metro area had a population                                     Richard Barrett
                                                                                                    by R S Homes
   In the past ten years, Houston has seen        of 1.8 million in 1950, a strong job                                     RBS Homes
growth of 270,000 new jobs. By compari-           market, and a strong housing market.                           
son, each of Los Angeles, San Francisco,
and Chicago have lost 100,000 jobs in the                                                                   ���������������������

                                                                                                                          Join Us for Our VIP Property Tours
past ten years. In Houston unemployment                           ����������������������������������
                                                                                                                                                                                                    ����� ������� ������� ���� ������ ��� �����

is down and job growth is up. Over the past                      �
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                                                                         �������������������������������������                    ������ ������ ��������������� ������������ ��                       ������������������������������������������
                                                                         ����� �������� ����� �������� �������                    ������������������������������������������                        ������� ��� ������ ��� ������ ����� �������
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five years (June 2005 - June 2010) Hous-
                                                                         ������������������������������������                     �����������������������������������������                         ���������������������������������������
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                                                                                                                                                                                                                                                                     Join Us for Property Tours in 2 Cities
                                                                 ��������� ���� ������ ��������� ���������
                                                                 �������� ���������� ������������� ���� �

ton has ranked #1 in job growth, adding

                                                                                                                                                                                                                                                                     Houston, TX & Phoenix, AZ

129,000 jobs. In contrast, over the same
                                                                 ������ ������ �� ������� ������� ���� ����� ��

period, Los Angeles lost 376,000 jobs,                           ���������������� ��� �� ����� �������
                                                                 ��������������������������                                                        Meet Our Affiliates, Property Managers & On-the-Ground
Detroit lost 329,000 jobs and Chicago lost

                                                                                                                                                   Teams in Both Cities! Featuring Both Long-Term Hold &

                                                                                                                                  Houston Tour

253,000 jobs.
                                                                                                                                  is March 12 & 13 Long-Distance Flip Opportunities.          Realty411
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                                                                                                                                                                                                                                                                     A Full Day of Education * Small Group
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                                                                                                                                                                                                                                                                                                                                                                    DAN REEDY

                                                          T                                                                                                                                                                                                                                                                         America’s Heartland
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                                                                                                                                                                                                                                                                                                                                                                                 The Owner of

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behind only Dallas-Ft. Worth and Atlanta.                                                                         PAGE 11 • 2011                                                                                                                                                                                                                                      
                                                                                                               On Location in Memphis

                                                        the Cash Flow Pros
                     by Linda Pliagas
                 hey came from Kansas City,
                 Baton Rouge, Los Angeles
                 and Indianapolis to Mem-
                 phis, Tenn. Investors from               share their Secrets
                                                           at their REI EDGE Event
                 a distance mingled with
                 local wholesalers, agents
and brokers. All were there to spend three
days learning from one of the most success-
ful families in the real estate industry, the
  “We’re going to pull back the curtains and
reveal all of our secrets,” Kent Clothier Sr.
said — that was enough to prompt me to
return to Memphis only one month after my
initial visit.
   The Cash Flow Pros’ “REI Edge” three-
day event, hosted by Kent Sr. and his sons
Chris, Brett and Kent, covered every gamut
of the real estate industry imaginable. From
property management, customer service,
private money and marketing, no stone was
left unturned.
   Kent Sr. revealed that they were in the
process of developing educational products
and the event offered a perfect opportunity
for them to fine tune their programs.
   The room of about 50 real estate investors
and industry professional was initially led
by Kent Sr. who has purchased, renovated
and sold thousands of properties around the
country. It was his idea to round his sons to-
gether in Memphis to take advantage of the                                              The Clothiers, from left to right: Brett, Kent, Chris and Kent Sr.
phenomenal buyer’s market in Tennessee.
Together the Clothiers have been involved        was one of their own local competitors who           Chris says that in order to remain suc-
in diverse real estate markets, including        also caters to long-distance landlords.           cessful, they focus 80% of their time on
Texas, Colorado and Florida.                        One of the most helpful tips given to us       building a buyer’s list. Some of their other
   What drove them to the Memphis market         by Chris Clothier for dealing with today’s        secrets for their incredible sales volumes
is exactly what drives Californians to buy       tough lending industry was the compilation        are creating “call-to-action” marketing
2,000 miles away from home: Cash flow.           of “The Bank Book.”                               pieces, which ignite prospects to reach
                                                    This Clothier secret weapon provides an        out. “You are always marketing yourself, it
        REI Edge: The Cash Flow Pros             organized and effective way of presenting         never stops,” Chris admits.
            Reveal Their Secrets                 their company’s information to a banker              Once an investor becomes a client, the
                                                 when trying to procure a loan.                    Clothiers say they will be repeat custom-
  At the Cash Flow Pros event, which was            “The Bank Book puts me in front of the         ers and refer others as well because of their
videotaped to be the blueprint for their         pack,” Chris said, adding: “I have used this      philosophy of “over performing and giving
new educational company REI Edge, each           as a great ice breaker.”                          clients more than what they expect.”
Clothier spoke about the unique talents they        Chris said his book contains a mission            Eric Hobbs and his wife listened intently
bring to the company.                            statement, an executive summary and an            while the Clothiers spoke. Normally they
  Kent Sr. taught the group his secrets in       introduction to his professional team, even       are employed by the Clothiers as leasing
property management, customer service            before the financials are presented. The          agents, but today they consider themselves
and rehabbing. Chris revealed tons of mar-       key is to present your organization as the        their students.
keting secrets and tips for acquiring private    best company in town, one that they should           “The information they are giving is
lending. Kent, who lives in Florida, moti-       want to be doing business with.                   great,” he enthusiastically said. When
vated the audience and sprung them into             Another key issue touched upon during          questioned about why he took three days
action.                                          this informative weekend was sales, some-         away from his tenant placement business,
  The event was opened up to anyone who          thing the Clothiers know a lot about. In          the novice wholesaler replied with a smile,
was interested. Friendly competitors from        fact, they consistently sell over 200 proper-     “I want to learn from the best in the busi-
other markets eagerly attended. In the room      ties annually.                                    ness and that’s why I am here.” >                                              PAGE 13 • 2011                                                   
Property Management & Customer                                                                           Take Action Now
Service: The Foundation for Success
                                                                                                After hearing three days of fantastic
   Although now                                                            tips and information from one of the
consistently sell 20 homes on a monthly                                                      nation’s top brokerages that services
basis, mostly through referrals, it took                                                     out-of-state investors, the participants
years of learning tough lessons for them                                                     were ready to return home and imple-
to attain that level of volume.                                                              ment their newfound knowledge.
   “We were not successful at property                                                          To make sure that our mindset was
management at first,” admits Kent Sr.                                                        right, the Clothiers asked audience
He adds: “We lost a lot of money on this                                                     members to volunteer and address the
side of the business, but we’ve come a                                                       room. They wanted to know how we
long way in six years.”                                                                      would implement the information into
   When the Clothiers started assisting
out-of-state investors years back they
                                       ’s                         new goals and ideas.
                                                                                                One gentleman from Louisiana ad-
only sold the rental homes, they did not         Spring Schedule 2011                        dressed the room. He admitted that he
have contact with the investors after-                                                       wasn’t doing enough networking in his
                                              Join the Clothier family at their property
wards. Kent Sr. is the first to admit that                                                   farm area of Baton Rouge.
                                              buying events around the country. Come
it didn’t go so well. Customers were not                                                        Another investor also took home
                                              learn how to cash flow in one of the hottest
happy, repairs were costly, the manage-       markets in the country, Memphis, TN.           a tip or two. “The biggest lesson I
ment was in chaos.                                                                           learned at this event is the amount of
   One of the ways that the Clothiers cre-    Jan 13, 2011 - St. Louis, MO                   offers I need to make every month,”
ated an improved system of management         Marriott St. Louis West                        said Andy Ono, an investor and whole-
is by bringing that aspect of the business    660 Maryville Centre Drive                     saler from Kansas City. Ono was also
in-house so they have control over the        5:30 pm to 9 pm                                very pleased with all the information
properties that their investors purchase.     Jan 29, 2011 -                                 he learned on property management.
   The mindset of           San Jose, CA                                      While it’s easy for investors to make
from simply selling rentals was trans-        Doubletree                                     a list of goals while at an event, the dif-
formed into one where “the house is just      2050 Gateway Pl.                               ficult part is transferring that positive
merely a bi-product.”                         8 am to 5 pm                                   energy into action.
   Kent Sr. explains: “It’s all about the     Feb 17, 2011 -                                    Kent Clothier knows this all to
investors. It’s all about the client. Our     Santa Ana, CA                                  well. The developer of the 1-800-
character, our integrity and our honesty      Doubletree                                     SELL NOW vanity number and the
are on the line.”                             201 E. McArthur                       marketing
   Since they zeroed in on property man-      Blvd.                                          system, didn’t pretend to have a magic
agement and on “exceptional customer          8 am to 5 pm                                   formula for success. No pill or spell
service” their sales have skyrocketed.        Feb 19, 2011 -                                 can take the place of good ol’ fashion
In fact, most of their existing business is   Los Angeles, CA                                hard work.
generated by repeat customers (the aver-      Embassy Suites                                    “If you want big things to happen,
age investor buys four rentals) and refer-    9801 Airport Blvd.                             you have to do big things. This ain’t
rals from current investors.                  8 am to 5 pm                                   practice, this is the game,” he said in
   Kent Sr. realized a tough lesson early     March 12, 2011 -                               a matter-of-fact tone. “While you are
on: “Without the investors being happy,       Orlando, FL                                    sitting around thinking, someone else
there are no jobs in our company.” Now        Orlando Peabody                                is already doing it. Either you act on it takes a proactive           April 29 & 30, 2011 - Memphis, TN              or get out the way.”
approach. “Our goal is that the investor      Memphis Hilton                                    The audience was quiet, the pressure
will never have to call our office.”          939 Ridge Lake Blvd., Memphis, TN 38120        was on as Kent continued his closing.
   To make sure the investors are kept                                                       “Ninety percent of the people will not
up-to-date, their management staff call       For more information, please contact:          act, I challenge you to not be one of
about sixty investors per week with a re-     (901) 751-7191 or            them.” It was time for students of the
port on their property.                                                                      Clothier real estate academy to create
   Again Kent Sr. reiterated that they                                                       their own success stories.
turned a chaotic situation into a positive                                                      Sensing that the students were feel-
one by merely shifting their focus from                                                      ing a little overwhelmed and skittish,
properties to people.                                                                        Kent Clothier lessened the intensity by
   “If you don’t have outstanding cus-                                                       smiling and giving us one last piece of
tomer service, then you won’t have a                                                         friendly advice to chew on: “Don’t set
business for long.”                                                                          out to build that wall all at once, just
                                                                                             lay one brick at a time.”
 on Baltic Avenue

by Lori Greymont

        emember playing Mo-         erties ready to be turned into
        nopoly and anxiously        cash-flowing, wealth-building
        waiting to get that third   engines.
property of the same color so          The first premise of this
you could double your rent?         strategy is that there still is a
What if you had the oppor-          market for homeownership that
tunity in real life to purchase     is underserved: working class
three, six, twelve properties at    people who make enough to
a time and start collecting on      cover rent, but can’t get a bank
all of them? The phenomenon         loan.
of massive numbers of bank-            Working class people are
owned properties hitting the        willing to buy houses and are
market means you can make           willing to make repairs — at

By investing in bulk REOs, an individual can
quickly acquire a portfolio of properties that
 will produce cash flow for years to come.

just this kind of bulk purchase     the right price. That price is
(bulk REOs in real estate par-      equivalent to rent. It makes
lance). Bulk REO packages           sense. Let’s say the average
provide 10 to 15 homes (nation-     rent in an area is $450. Offer
wide) sold together for bargain     a working person a privately
basement prices. By investing       financed home for $450 or less
in bulk REOs, an individual         per month and they’ll take the
can quickly acquire a portfolio     deal. And they’ll make the pay-
of properties that will produce     ments because they already
cash flow for years to come.        have a history of making rental
These homes are not in the high     payments. These loans are de-
rent Park Places of the world,      signed to succeed, not doomed
but in the working class Baltic     to fail.
Avenue-type neighborhoods—             The second premise of this
one reason there is a low cost      strategy for investors is that a
of entry.                           right-sized, cash-flowing loan
   How low? You can get in the      at 9.5% over 15 years is a good
game for as little as $100,000      investment. Purchasing a cash-
for a small portfolio of cash-      flowing loan at a discount is an
flowing properties or as little     even better deal.
as $200,000 for 20 plus prop-          Bulk REO purchases put
                                    these premises into action. An
                                    active investor will purchase
                                    10 plus houses and then resell
                                    them to owner-occupants with
                                                Continued on pg. 35                                             PAGE 15 • 2011
               How’s Life?
          by Sam Sadat, founder of Los Angeles Real Estate Investors Club
                                                                                                                         events will shift to fit
                                                                                                                         your attitude, your per-
                                                                                                                           In the immortal words

                                                                                                                         of John Milton, “The
             e are always asking each other,      This is the essential shift that                                       mind can make a heaven
             “How’s life?” The same person        makes the difference between                                           out of hell or a hell out
             might reply that life is great on    manifesting success rather than                                        of heaven.”
one day and then complain that life is terri-     failure and abundance rather                                             Is this starting to
ble on the next. Is this variation really a re-   than scarcity. Never be a victim!                                      sound a little too “out
flection of the changing nature of existence         To help you in your quest to shift your        there” for you? Perhaps this is a good time
or is it a function of human interpretation? I    paradigm and make a quantum leap, I have          to mention an unusual discovery that was
believe it’s the latter and here’s why.           developed a quick technique called, “pause        made in the field of quantum mechanics
   Life simply does what it’s supposed to. It     and ponder.” By practicing this easy tech-        when the science was in its infancy. It was
flows with no judgment, vendetta or favor-        nique, you can become a more potent ob-           discovered during the observation of atom-
itism. It’s neither good nor bad; it is imper-    server.                                           ic particles that the act of observation was
sonal. Life simply serves up the events you          When something “unpleasant” happens            itself changing the outcome of the experi-
manifest. So don’t blame “life” for the bad       in your life, just pause. Pausing is surpris-     ment. If they changed the method of their
things that happen to you. Existence doesn’t      ingly powerful. Usually we try to protect         observation they observed something dif-
create the events in your life, YOU DO. If        ourselves from uncomfortable circum-              ferent. Change the perspective, change the
you don’t like what you’re getting, change        stances in a reactive, unthinking way. We         perceived. To put it mildly, this was quite
your thoughts, words and deeds. Take re-          immediately shut down, lash out or hide           the mystery. Scientists have carefully con-
sponsibility, existence will respond.             away. We don’t think about what we will           firmed and described this phenomenon, but
   Many people make the mistake of ap-            do, we just do it. Or rather, it “just hap-       they still can’t explain it.
proaching life as if it is the enemy. They        pens.” Unfortunately, this reactive behav-           Each of us is a powerful, manifesting
drive themselves crazy resisting what life        ior is out of control. It tends to make the       being, but it is important to remember that
brings and learning nothing. You can curse        situation worse than it really is, which in       we cannot explain everything. This helps
life all you want, but life is innocent of all    turn causes more reactive behavior. This          us to remain humble and joyous in the face
charges. Life doesn’t even register your          results in a negative downward spiral, and        of the great mystery. William Blake said it
complaints! Life is, after all, profoundly        the self-fulfilling prophesy of victimhood.       best in his famous poem, “Auguries of In-
neutral and just, which is good. You want         You become the victim you think you are.          nocence”:
a better life? Begin by changing your per-           So remember to pause. Just stop.                  To see a World in a Grain of Sand
spective. Try to see things differently. What        Sometimes no action is required. Some-            And a Heaven in a Wild Flower,
are you ignoring or assuming that is lim-         times it’s best to sit back and let things           Hold Infinity in the palm of your hand
iting your vision? Take a moment to think         play out a little — give a little space for the      And Eternity in an hour.
about that. Are you belligerently skeptical       natural course of events. By being still and         We must not try to control the world,
and hopeless? Or are you open and clear,          acting only when necessary, many of life’s        only our perspective in it. This way our
ready to assess situations without prejudice?     problems magically solve themselves.              manifesting becomes like a dance with
Often we don’t really see what’s unfolding        Learning to be still is the beginning of real     existence. So now let me ask you: How’s
before us, instead we see it all through the      wisdom.                                           life?
lenses of our previous conditioning. And             But don’t just pause, that’s not the whole
then our responses are programmed. We             technique. You have to pause and ponder.             Best Regards,
become like robots.                               Ask yourself: How shall I choose to see              Sam Sadat
   When you choose to change your point of        and process what’s just happened? What            PS: I encourage you to associate with posi-
view, a problematic situation is revealed in      light will I see this in? This will prevent you   tive, creative people and stay away from
a new light. Suddenly new solutions pres-         once and for all from blindly reacting to the     those who lower your energy or hinder your
ent themselves. They seem so obvious! You         situation. But most importantly this will         morale. For this reason we encourage you
wonder how you could have missed them.            give you a chance to gain some perspective        to come to our monthly real estate meet-
With this clear vision and with these new         and make a smart, positive choice. It will        ings. When you come to the LAREIC’s
solutions, you become a more powerful and         give you the power to change things.              monthly meetings, you will not only learn
capable manifestor.                                  It is a mysterious, mystical truth that        the nuts and bolts of the real estate from the
   All the great sages in human history have      seeing things differently actually changes        best in business but also get a chance for
basically said the same thing in different        them. No one really understands how this          personal development and self improve-
words: Learn to look at events in a way           works, but it does. I’m not saying that if        ment, all in one incredible evening.
that makes you stronger. Avoid subscribing        you see your Volkswagen as a BMW it will          For more information about us, call
to interpretations that draw you down into        magically become a BMW, you don’t get             (800) 998-9930 or visit our websites:
weak energy patterns. Seek interpretations        to choose the exact nature of the change.
that strengthen you, that give you a choice.      Rather, through the power of resonance,                                                PAGE 16 • 2011                                           
  All Aboard for The Elite
   Extraordinaire Cruise
             A Celebration of Wealth
T    he Elite Extraordinaire
     Cruise is celebrating luxury
living and self improvement in
                                    international law at Purdue
                                    University. Dr. Beres will
                                    lecture on topics concerning
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the high sees. The cruise departs   present day world affairs. There        We Have Millions of Dollars in
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sailing to the Panama                              knowledge in the
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refurbished Six Star                               entertainment,         the current real estate downturn. Competitive rates & terms.
Symphony of Crystal                                business and
Cruises.                                           t e c h n o l o g y,                                       For more info call:
   The cruises’                                    lifestyle,
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“A Celebration                      and food. Certificates of                                               1112 Montana Ave Suite 390
of Wealth: Where business           completion will be distributed                                             Santa Monica, CA 90406
meets luxury.” An atmosphere        at the end of the curriculum.
will be created where business      Live entertainment and
networking can take place in a      multiple off-shore excursions                                                Exclusively Serving the
luxurious setting. Guests will      will also be offered to guests                                            Southern California Market
have the opportunity to listen      of The Elite Extraordinaire
to and meet renowned author         Cruise. -by Brianna Bertrand                                                     License #00832641
and columnist Louis Rene            For more information, visit:
Beres, Ph.D., a professor of
 LEVERAGE is a Double-Edged Sword
                                                                                                       by Crystal Han from 360 Investments®

                      everage is de-                           es”, which, like a double-edged          requirements, loan to value ratios (LTV),
                      fined as “the                            sword, can help you or hurt              pre-payment penalties, and qualifications),
                      use of an ini-                           you. Therefore, although high-           approximate closing costs (loan fees, trans-
              tial investment, credit,                         est returns on investments can           action fees, title, escrow, attorney, transfer
              or borrowed funds to                             be most desirable, an investor           tax, document fee), rehab/renovation costs,
              gain a very high return                          must weigh the risk and rewards          holding costs (taxes, insurance, payments),
              in relation to one’s in-                         carefully. Your goal should be           income, expenses (property taxes, insur-
              vestment, to control                             to maximize leveraging power             ance, management fees, and maintenance/
              a much larger invest-                            while minimizing risk.                   repairs) and vacancy factors.

                         “Leverage magnifies both gains and losses,” which,
                        like a double-edged sword, can help you or hurt you.

              ment, or to reduce one’s own li-        When evaluating and analyzing a prop-                Net operating income (NOI) is calculated
              ability for any loss.” Leverage is   erty, it is important to plug in all figures, in-    by total income minus total expenses. Cash
              a powerful tool investors use in     cluding current appraised value (as-is), af-         flow is calculated by NOI minus debt ser-
              real estate transactions. Investo-   ter repair value (fixed up), average days on         vice (mortgage payment). Please note that
     states, “Leverage          market, purchase price, financing options            debt service, also known as the mortgage
              magnifies both gains and loss-       and terms (interest rate, down payment
                                                                                                                                 Continued on pg. 22                                                   PAGE 18 • 2011                                            
Cash Flow with Dan in
     Missouri Real Estate Exchange
      Helps Investors from Around
     the World Invest in Kansas City
                              by Brianna Bertrand

                     ive years ago in September, Dan and Nancy
                     Reedy opened Missouri Real Estate Exchange
                     ( for business in a 10 x 20 foot
       office space with only two phones. Today their office in
       Grandview, Mo., spans 4,000 square feet, they employ
       10 people and another 30 to 50 subcontractors at any
       given time.
          Together, Dan and Nancy own a handful of properties
       and rentals that they’ve acquired over time. They have a
       long history in the real estate investing business.
          Nancy, for example, grew up with a father who bought
       distressed farms and land and would rehabilitate and re-
       sell them for a living. She bought her first investment
       property at 19. She went on to acquire one of her dad’s
       farms and subdivide it into estate lots to create her own
       high-end subdivision in Foristel, MO. She is both a Mis-
       souri and Kansas real estate broker and owner of MORE
       Homes LLC and MORE Property Management LLC. >                                            PAGE 19 • 2011
   My dad always said, “Don’t                                                          are benefiting from the returns they’re seeing
wait to buy real estate. Buy real                                                      in the U.S., as opposed to the lower amounts
estate and wait.”                                                                      they’d see in their own countries. People in
   Owning real estate has always                                                       New Zealand and Asia have also expressed in-
been the foundation of Nancy’s                                                         terest in doing business with
endeavors. She explains: “Real                                                            “The big draw to Kansas City is not just
estate gave me the opportunity                                                         lower prices, [it is] due largely in part to the
to quietly build wealth while                                                          stability of the market and a higher quality of
also receiving income, depreci-                                                        tenant. The biggest reason investors from all
ation and tax benefits. I realized                                                     over the globe come to Kansas City now is due
at an early age I had a passion                                                        to the 100% turn-key product that we provide
for design and started doing                                                           and the depth and scope of our power team,”
specialty painting for myself
and friends.”
    Soon, Nancy says the word         “No matter where you invest, property management is the
started to spread. “I eventually      key to the kingdom to insure that the investment performs
started my own interior design
company called Distinctly             and gives you the profitability necessary to stay in the game.”
Yours. It was a great match as
I was already involved in real
estate and now could put my                                                            Dan explains. “Right now 70% to 80% of their
touch on people’s homes.”                                                              business are repeats and referrals. “We have
   Nancy says that people                                                              always kept the long-term vision in regards to
don’t realize just how much a                                                          our investors’ properties,” Dan says and ex-
little design work and specialty                                                       plains: “We tend to rehab our rental properties
painting can improve the desir-                                                        to a retail status with new windows, HVAC,
ability of a property. Within                                                          ceramic tile, and most recently, we have been
a few years, Nancy ended up                                                            putting granite counter tops in a large number
taking on the consulting and                                                           of our rental homes.”
design work for a high-end                                                                Dan and Nancy have made some fantastic
builder in Kansas City. “They                                                          deals with suppliers and it doesn’t cost them
were building new lake front                                                           much more to go high-end as it does to go
homes from $1 million and up                                       Nancy and Dan Reedy cheap. They say the biggest benefit to the
and we were doing the exposed timbers,                                                 higher-end rehab is that properties rent much
distressing the hardwoods with hammers Investing for the Regular Guy.”                 faster, stay occupied longer and draw a better
and chains and creating really bold color      The Reedys’ main focus with clientele. This makes for a much more profit-
designs. It was a blast.”          , however, is keeping able investment for the investor enabling them
   The last big project she was involved in enough properties available for inves- to purchase more properties with confidence.
before the couple’s start of Missouri Real tors. Their primary clients are investors’s average rehabbed cash
Estate Exchange was a $1 million-dollar from all over the country interested in flow properties are $30,000 to $40,000, which
rehab on a huge estate at a country club. Kansas City because of low property bring in rents of $600 to $900 per month. The
The property featured suspended                                                        company does offer conventional financing
staircases, a wine cellar and it even                                                  with down payments of 20% to 30%, although
had a secret door in the library lead-                                                 it’s tough to attain in today’s climate.
ing to a master bedroom and exercise                                                      Recently, has announced
room.                                                                                  that they are now able to finance some of their
   “Now I concentrate on the proper-                                                   cash- flow properties. The company’s private
ties that we sell to investors, making                                                 lender has agreed to do shorter term full amor-
sure they stand out and appeal to ten-                                                 tization loans on properties with a larger-than-
ants or our retail buyers,” she says.                                                  usual down payment.
One of the ways this is done is by                                                        The up-front cash flow will be less than a
incorporating popular colors with a                                                    conventional loan, but the properties will be
light staging to give the homes a little                                               fully paid off in five to 15 years and there are
more warmth and desirability.                                                          no limits on the number of properties pur-
   Dan is a life-long resident of Kan-                                                 chased. With these shorter term and larger
sas City and knows the local market inside prices and the higher-than-usual cash down payment requirements, the underwriting
and out. In less than five years, Dan has flow the market offers.                      requirements are substantially less rigorous.
been involved with over 1,000 real estate      The Reedys started working with            “The mortgage industry has all but said, ‘No
transactions and 400 rehab projects. Dan people from Canada and Australia ear- thanks,’ when it comes to investor financing,”
also hosts his own radio show, “Real Estate lier this year as well. Foreign investors Dan explains. “I have never been a big fan of                                           PAGE 20 • 2011                                      
               A Reedy Rehab
                                                                           hard money loans as they are
                                                                           so expensive. I finally was able
                                                                           to strike a deal with my private

               From Ugly to Elegant                                        lenders where they will loan up
                                                                           to 70% of acquisition for up to
                                                                           15 years non-recourse at com-

            avvy inves-                                                    petitive interest rates.”
            tors always                                             ’s new pro-                          Dan Reedy plays Santa
            want to buy                                                    gram has very few restrictions
     the ugliest house in                                                  and it’s taken off like wildfire.    investor and tenant base. We
     the best neighbor-                                                    They currently have over 50          just recently hired a fantastic
     hood possible and                                                     properties that qualify for this     accountant dedicated solely
     the Reedys are no                                                     financing program.                   to property management,” he
     different.                                                               The Reedys are also firm be-      explains and adds: “Our staff
     They scour                                                            lievers that property manage-        consists of five full-time leas-
     their market                                                          ment is key to the success of        ing agents who are respon-
     for the best                                                          their company.                       sible for fielding rental calls,
     deals in the                                                             “We have had inves-
     best of areas                                                         tors find better deals on
     for their                                                             paper, but when their
     investors                                                             property management
     around the                                                            company could not per-
     world. After                                                          form their duties, the
     hundreds of                                                           properties sat vacant and
     rehabs under                                                          there was no cash flow,
     their belt, the Reedys are experts at turning run down, ugly          those better deals turned
     houses into elegant homes worthy of exceptional tenants.              into financial night-
     Would you like to turn a blighted home into a beautiful               mares,” Dan says.
                                                                              “No matter where you invest,      showing properties and getting
     masterpiece that can consistently cash flow?
                                                                           property management is the           leases signed, a sales manager
     Please visit to see the latest opportunities                                                    who is in charge of marketing
                                                                           key to the kingdom to insure
     available. Seller financing is now being offered!                                                          the properties, keeping track
                                                                           that the investment performs
                                                                           and gives you the profitability      of appointments and section
                                                                           necessary to stay in the game.”      8 inspections. Plus, our main-
                                                                                                                tenance department has three
                                                                                                                full-time maintenance men that
                                                                                                                keep our 400 plus units func-
                                                                                                                tioning 24/7.”
                                                                                                                   The Reedys have also started
                                                                                                                a mentoring and training pro-
                                                                                                                gram for people wanting to
       Nancy Reedy                                                                                              learn how to profit in real estate
     inspects a new                                                                                             without spending thousands
                                                                           Dan & Nancy’s partner Jeffrey Lund
          acquisition                                                                                           on seminars, tapes and books.
        that needs a                                                 continues to           Their goal is to educate as
         lot of work.                                                      grow and expand all the time,        many people as possible about
      This project is                                                      and the Reedys are constantly        the current phenomenal buyer’s
              not for                                                      looking for ways to improve          market.
          the novice.                                                      their company.                          “We have always stressed
                                                                              “The only way we can ac-          to our local and national buy-
                                                                           complish this is with good           ers that this is a small window
                                                                           people and processes and the         of time that’s not going to last
                                                                           sense to know that we need to        forever. If you are not actively
                                         Experienced investors             constantly grow, improve and         pursuing real estate investing as
                                         like the Reedys know              stay current with the market,”       a way to build long-term wealth
                                         that when a house is              Dan says.                            then SHAME ON YOU!” Dan
                                         renovated just right, it             “We are always tweaking           exclaims.
                                         won’t sit vacant long.            our processes and looking for        For more information, please
                                                                           ways to improve service to our       visit:                                                  PAGE 21 • 2011                                         
 Leverage is a Double-Edged Sword, pg. 18
                                                    Leverage can be an investor’s best friend
payment is NOT considered an expense                   or worst foe so please be careful!
and is not included in the NOI calculation.
Cash on Cash return (COC) is calculated        leverage. For example, getting financing               and return on investment. It also gives you
by cash flow multiplied by 12 (always an-      at 80% LTV is being more leveraged than                the option to select whether closing costs
nually) divided by total investment (down      at 50%. Therefore, when leveraging, make               are financed or not financed, which will
payment, out of pocket expenses, and clos-     sure you have a comfortable cushion of                 change the cash flow, total invested amount
ing costs, if not financed).                   POSITIVE cash flow to allow for vacancy,               and return on investment.
   Return on Investment (ROI) is COC but       repairs, maintenance and turn over costs.                 Quickly analyze your next investment
also includes the tax benefits of deprecia-       Also, make sure you have enough equity              opportunity by visiting our website at:
tion (paper loss) and principle mortgage re-   in case you ever need to liquidate your as-  
duction.                                       set. 360 Investments™ has created a FREE                  Online there are other software programs
   The higher the ROI could well mean the      useful calculation tool, the “Deal Analyz-             available that provide more extensive anal-
higher leveraged you are. A high Loan to       er,” which quickly calculates net operating            ysis, like return on equity based on future
Value ratio (LTV) could also mean high         income, cash flow, total invested amount,              projected appreciation rates.
                                                                                                         Investors should monitor their invest-
                                                              f o r C r e at                          ment figures monthly and keep tabs on
                                                                    R e a ive                         market appreciation/depreciation, rental
                                                                          l E s S olu
                                                                               t at e t i o n         vacancies, rental rates, population growth,
                                                                                     I nv s           mortgage interest rates, job growth, unem-
                                                                                               rs     ployment rates, number of foreclosures,
                                                                                                      and other key economic factors.
                                                                                                         Leverage can be lowered by increased
                                 no credit score required
                                                                                                      property values, principle mortgage reduc-
                            no-money-down investor programs
                                 transactional financing
                                                                                                      tions and additional principle payments.
                                  guidance & support                                                  Leverage can be an investor’s best friend
                                      for investors                                                   or worst foe so please be careful!

                                                                                                      For more information, please visit online:

                             Rent your property FAST
                        HIRE Dorfman Property Management
                                                                                                    Our Available Services:                                              PAGE 22 • 2011                                             
      Are You Profiting from
   the Credit Crunch?


                   ANK in T t.”
   OU can Be the B ironmen
“Y            ing Env
  TIG HT Lend

                                  SPECIAL REPORT INSIDE BY:

                                Ron Black, Investor, Texas Real Estate Broker
                                   and President of Texas Investor Homes

   Texas is the #1 Growth Market
    Investors are Needed to Fund Housing Projects
                                                         SPECIAL FREE REPORT

Provide Short-Term Financing to Builders
for High Potential Returns and Cash Flow
                                                               By Ron Black

      f you’ve been looking for an easier       cation!” Well I have a new one that is just    when it came time to refinance, the lender
      way to invest in real estate then you     as important in today’s real estate invest-    guidelines had already tightened and the
      may find the answer in this report.       ing market:“Change, Change, Change!”           price appreciation had reversed and they
      Many years of experience in real es-      Are you still trying to get 5% down or no      were stuck “upside down” or “unqualified”
tate has taken me from the traditional “buy     money down for your investment property        to refinance any longer. I can see many of
a fixer upper and rent it” to foreclosure and   purchases? What about getting an 80/10/10      you reading this shaking your head because
REO buying and rehabbing. I have dabbled        loan as an investor? Are you endlessly         this actually happened to you or someone
in short sales and then finally in new con-     bidding on foreclosures with no success?       you know. The Glory Days of double-digit,
struction opportunities before I discovered     What about short sales? How many have          year over year appreciation are gone with
the severe need for alternative builder con-    you bought? The challenge for most real        a few rare market exceptions. Low single
struction financing. Although I had great       estate entrepreneurs is to recognize           digit appreciation is most probable for the
success with most forms of investing in         when it is time for change. That time is       next 10-year cycle. In other words, if you
                                                                                               are going to make any money in this NEW
                                                                                               market investing in real estate you better
                                                                                               make it on cash flow because significant
                                                                                               appreciation is unlikely in the foreseeable

                                                                                               A Better Option to “Buying” Real Estate.
                                                                                               So what are the options for potential high
                                                                                               yielding returns on our real estate invest-
                                                                                               ment dollar if price appreciation is very
                                                                                               limited and we are tired of the landlord
                                                                                               game? What many frustrated investors are
                                                                                               doing because of these lending changes is
                                                                                               looking almost strictly for “Cash Flow”
                                                                                               opportunities versus the long shot of price
                                                                                               appreciation. One way many investors
                                                                                               are achieving high cash flow is simply by
                                                                                               “loaning” rather than “owning”. The op-
                                                                                               portunities are endless because builders are
                                                                                               having an extremely difficult time finding
                                                                                               traditional bank financing.

                                                                                               Why are Builders Willing to Pay High In-
yesterday’s market, I found that creative                                                      terest Now?
and unique new construction real estate         NOW. Right now the new construction real       The real estate market is screaming right
investments were the most trouble-free          estate market is SCREAMING that it needs       now for alternative financing, especially in
and profitable in today’s NEW real es-          alternative builder financing. Are you lis-    higher demand areas like Texas. Builders
tate investment market. Yes, the market         tening?                                        in particular are hurting right now because
has changed dramatically since 2008 and                                                        many banks absolutely will not loan to
what builders need from investors has           What Happened to the Real Estate Party?        builders regardless of the demand. Why?
changed as well. Are you positioning your-      The devaluation of many real estate mar-       “Real estate” is a dirty word to banks
self for this change? Net cash flow is the      kets across the country coupled with in-       right now. Banks that do loan to builders
name of this new game NOT appreciation.         credibly tight lender financing guidelines     do so at much lower levels than before even
                                                has depreciated many markets back to           if their builder/client has been performing
Change: More Important than Location?           where they were eight to 10 years ago. That    well on their loans for years. Listen to the
Savvy investors always have their ear to the    rapid price depreciation in itself hastened    news every night and you will hear a story
ground and their nose to the wind seeking       the downfall of many seasoned real estate      about banks “not lending”. Builders and
new opportunities. Savvy investors are also     investors, not to mention banks and lending    many other small businesses are begging
not scared to change. We’ve all heard the       institutions, etc. Since many investors were   banks for loans. The sad part is that some
real estate axiom: “Location, Location, Lo-     already using very short-term financing,       of the very banks we as taxpayers “bailed
out” have now turned their                                                                                    best news is that you do not
backs on us and quality                                                                                       need to go through a rigorous
builders who were their                                                                                       qualification process to be
best clients for years! The                                                                                   “qualified”.
lending restrictions for                                                                                       Almost anyone can become
builders has more to do                                                                                       a private interim lender, if
with the banks reducing                                                                                       they have access to cash.
their exposure to real es-
tate loans “overall” than                                                                                     Be an Investor, Not a Land-
it has to do with the credit                                                                                  lord.
worthiness of the builder.                                                                                    Making the mental leap from
Builders did not need us as                                                                                   the “Landlord” frame of
private lenders two years                                                                                     mind to an “Investor” men-
ago because banks were                                                                                        tality also requires a change.
shoving money at them                                                                                         Many investors entered into
for 7% to 9% APR. Now                                                                                         real estate like I did initially,
builders need small pri-                                                                                      as a landlord. They may think
vate investors in order to                                                                                    they are “investing” but over
keep building and will pay                       look suspiciously at their “buy and hold”                    time they become a slave to
them more interest … for now. When you           approach. There must be a better way to       the property and the tenants and it becomes
think about it, what are the other options if    invest rather than the unpredictable stock    a second job. Even if you hire a property
banks do not lend to builders? There aren’t      market!                                       manager you still have to “manage the
many. Some of the builder’s homes are                                                          manager”. I hear about how landlords who
sold even before they are built. This is the     Who is Eligible to Invest?                    put very little down are always struggling
opportunity that many investors are seiz-        Most anyone can invest as a lender regard-    with poor cash flow or even negative cash
ing on. There is a huge funding niche in         less of their credit score as long as they    flow. One tenant turnover can wipe one
today’s market ripe for the picking if you       have access to cash. You can even invest      year’s total cash flow. Remember this: It’s
know how to tap it.                              with your IRA and 401(k) through a “self-     not the monthly cash flow you make that’s
                                                 directed” structure. You can invest person-   important, it’s the yearly cash flow you
Lending vs. Buying as an Investment              ally or with an LLC or most any type of       keep that counts.
There are many flavors of new construction       entity structure you choose. Many inves-
investing but the one I will cover here is       tors who have low credit scores choose to     How Much $ Do I Need?
my personal favorite, Interim Construc-          invest in this program because they can no    Rather than placing a 20% down payment
tion Loans to Builders for High Net Cash         longer get a real estate loan to buy prop-    or more on buying real estate, you can
Flow. Depending on your background and           erty.                                         place that same amount into an interim
experience level in real estate investing,           Many foreign nationals invest in this     construction loan. It might require a little
you may find this topic to be a rather strange   program because of the almost impos-          more than the typical down payment on an
approach to traditional real estate investing    sible lending guidelines that prevent them    investment property, but because lenders
since we are talking about lending rather        from owing investment real estate. The        now require 20% down payment or more
than buying. The main rea-                                                                                  for investors, many homes
son I considered this lend-                                                                                  you would buy would not
ing approach for my real                                                                                     be far from the current mini-
estate investing was that                                                                                    mum interim construction
the old approach was not                                                                                     loan amount anyway. It’s
working any longer in to-                                                                                    getting even more expensive
day’s market. The typical                                                                                    as many lenders are now re-
“buy and hold” approach                                                                                      quiring a 25% investor down
most real estate investors                                                                                   payment to get the best rates
were raised to believe in                                                                                    and terms. And dare we
has disappointed many in-                                                                                    predict that it will not be
vestors over the past few                                                                                    long before a 30-35% down
years. The same thing can                                                                                    payment or more will be re-
be said for the stock mar-                                                                                   quired even for high credit
ket. The market correction,                                                                                  worthy investors? It may
volatility and the current                                                                                   already be here by the time
government taxation and                                                                                      you read this report. Oppor-
regulation uncertainty has                                                                                   tunities are available from as
made many real estate and                                                                                    little as $77,000! >
stock market investors
Sources of Funds You May Al-
ready Have.                             About Ron Black                                                   the funds are disbursed in stages
                                                                                                          or “draws” as each phase of the
Do you have an IRA or 401(K)?           Investment Opportunities in
                                                                                                          home is completed, foundation,
Are they growing securely? Many         Dallas-Ft Worth . Austin .
                                                                                                          roof, sheetrock, etc. If something
investors are converting their stag-    San Antonio . Houston                                             should happen to the builder you

nant IRAs and 401(K)s to “Self-                                                                           would have enough left in es-
Directed IRAs”. They then take                   on Black is a
                                                 licensed Texas                                           crow to complete the home and
those IRA or 401(K) funds and                                                                             sell it or rent it to get your invest-
place them to work in interim                    BROKER and
                                        President of Texas Investor                                       ment back. In some markets we
construction loan opportunities at                                                                        escrow the loan funds and em-
14-18% APR! IRA conversions             Homes. He is known as one
                                        of the leading Creative New                                       ploy private inspectors to check
are easier and more affordable                                                                            each phase and verify the work
than ever to set up or transfer if      Construction Investors in        sonal use and he invests
                                        the country. Ron develops        alongside his investors          is being done correctly. Long
you know the right companies to                                                                           distance investors have pictures
use. The best companies we work         advanced investment              in many opportunities.
                                        strategies for smaller, pas-     Ron’s goal is to provide         emailed to them at various stag-
with do a “checkbook” style IRA                                                                           es of construction. Many long
account giving you direct access        sive investors using NEW         stable income and cash
                                        Construction as his model.       flow with little involve-        distance investors find the in-
to your funds for investment. The                                                                         terim construction loans much
reward is that you can conceiv-         He creatively applies these      ment from the Investor.
                                        high cash flow strategies to       Ron’s superb rela-             easier to invest in than owning
ably achieve much higher returns                                                                          real estate. And many investors
for your retirement funds and have      single family and multi-         tionship with builders
                                        family home investment           provides his Investors           tell me they make more money
the ability to use a source of funds                                                                      loaning and with less stress than
that have been sitting idle in most     opportunities and makes          unique and fresh op-
                                        these turn-key opportunities     portunities in all major         they ever did owning real estate.
cases to continue your real estate                                                                        Considering the high return po-
investments.                            available to small investors     markets across Texas and
                                        all over the country.            in other select parts of         tential available, many investors
                                          His specialty programs are     the country.                     say that investing in this type
What Type Homes are Being                                                                                 of lending can be much more
Built?                                  Lending Private funds to           Ron’s motto is:
                                        Builders such as Interim         Let’s be Investors               secure, profitable and less risky
Most investors I work with pre-                                                                           than the stock market or even
fer single family homes for their       Construction loans poten-        Not Landlords!
                                        tially yielding 18% APR                                           owning real estate if structured
interim construction loans. Exit                                                                          correctly.
strategy is easier in a worst case      and New Construction             You can reach Ron at
scenario, plus the demand in Texas      sales to small Investors.        972-897-6190
                                        Most of Ron’s experience         TexasInvestorHomes@               NOW is the time to Loan, not
is found in single family homes                                                                            Own!
and townhomes. Valuations can           was derived from develop-
                                        ing real estate investment       Website: www.Texas                If you are stuck in an investing
vary but typically we try to fo-                                                                           rut and are looking for a posi-
cus on homes that sell between          programs for his per-  
                                                                                                           tive change in your real estate
                                                                                                           investing, you should seriously
                                                                                                           consider the interim construc-
                                               available in some of the top growth cit-         tion loan investment option. If you have
                                               ies. Texas has four of the top 10 cities in      never invested in real estate this is an easy
                                               America predicted for growth over the next       way to get started in today’s new real estate
                                               few years.                                       market. I would encourage you to focus on
                                                                                                being an Investor and not a Landlord with
                                               Risk vs. Reward                                  all your new real estate investment oppor-
                                               Let’s talk about risk. If you invest $100,000    tunities. Change the way you invest to re-
                                               in the stock market is it risky? Can you lose    flect today’s NEW market conditions and
                                               it all? With single family home interim con-     you will prosper!
                                               struction lending it would be extremely rare
                                               for you to lose it all. And if done correctly,
                                               I can safely say that you can likely NEVER
                                               lose all your investment. Yes, there is some
$100,000 and $200,000. Our loan to the         risk but let’s talk about two of the reasons     Further Information and Comments:
builder is usually 60% to 70% of the val-      this is a reasonably secure opportunity.         To learn more about interim construction
ue of the home being built. Our pipeline       First, we are always a first position lien       lending in today’s NEW real estate market
of builders is growing in this price range     holder of the property. We don’t usually         and creative real estate investing, contact:
and we remain very strict in sticking to our   invest in a second position loan because of      Ron Black, Texas Investor Homes, 972-
funding niche on price and market loca-        the higher risk. Second, we don’t usually        897-6190, TexasInvestorHomes@GMail.
tion. There are many of these opportunities    invest all the funds at once. In many cases      com,
     Home Replay’s Property Analyzer
                                                                                                                   by Anita Woods
            Don’t buy your next property without it!
                                                                                                     money pit rather than an investment ve-
                                                                                                     hicle. The best solution for this problem is

T    here’s no doubt the real estate market
     has taken a hit in recent years; how-
ever, it’s still a viable way to increase your
                                                 ties, visit each of them to see what needs to
                                                 be done, then sit down and review the data
                                                 to determine which ones will be the most
                                                                                                     to make all of your purchasing decisions
                                                                                                     based on the same set of criteria. This is
                                                                                                     how you remove the emotional factor and
investment portfolio. One area that is           profitable.                                         deal with just the numbers. Home Replay
expected to grow is the rehab                                  This process takes quite a bit        LLC, has created a powerful tool that will
market. Gary Geist, rehabber                                       of time, but as you know it       help you do just this.
and owner of Home Replay,                                          is also a task that’s necessary      The Property Analyzer is an easy-to-use
LLC believes that it will                                         to determine your profit mar-      software program that will drastically re-
continue to see growth over                                      gin. One factor involved in         duce the time involved in deciding which
the next few years. And                                          purchasing a home that inves-       properties to invest in. Using well-defined
with the advantage of more                                      tors often overlook or discount      criteria, established by experienced rehab-
than 80 years experience in                                     is the emotional factor, but no      bers, the Property Analyzer will help you
the real estate investment                                     matter how professional you           choose the homes that will produce the
arena, he just might know                                     may be, it can sometimes be dif-       greatest return on your investment.
a thing or two about it!                                      ficult to rule out the emotional                    Here’s how it works:
   Whether you’re a nov-                                     appeal of a home.                          The Property Analyzer program estab-
ice or a professional real estate in-                            This appeal can interfere with      lishes a baseline analysis of nine sectors of
vestor, you’re already aware of the time         the objectivity that’s necessary when in-           the home:
involved in choosing those properties that       vesting in real estate. If you let your emo-        ●curb appeal
offer the greatest return on your investment     tions weigh in too heavily on your decision         ●windows and doors
(ROI). You get a list of available proper-       to purchase, you just might end up with a
                                                                                                                             Continued on pg. 37

                                                                      • All local business networking events and
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                     CEO and Founder                                                PAGE 27 • 2011                                           
 MMG Capital Finds Opportunity
        Within the Financial Storm
                     While investment
                      bankers hold on
                       tight to funds,
                      savvy investors
                     enjoy double-digit
                     returns backed by
                     prime real estate.

              by Matt Malouf | edited by Anita Cooper
                    photography by Sam Green

                fter a few years of managing rentals, many real            timing, timing.
                estate investors decide to take a step back from              And in Gleason’s opinion, the time to be actively purchasing real
                actively managing tenants. Instead, they begin to          estate has passed; now it is time to move on to a passive strategy,
                work their capital by lending it to others for their       one more fitting for these turbulent times.
                purchases of real property.                                   Investors are invited to come alongside MMG Capital as a
   Experienced investors know that managing rentals can be a               private money lender. The opportunity to earn double-digit returns
chore. They also know that owning real estate in a down market             with little to no risk is an investor’s dream. That dream can be
offers more potential risk than at other times, so it’s no surprise that   realized through working with the creative finance team at MMG
after a while, real estate enthusiasts seek alternative investments        Capital.
for their portfolio. This is where Chris Gleason steps in.                    MMG Capital was created to leverage the numerous opportunities
   As partner and co-founder of MMG Capital, Gleason’s job is              available in today’s market as a result of the global credit crunch in
to match investors with conservative investment opportunities              the financial world. The creative real estate and asset-based finance
that can withstand the risks associated with today’s volatile              company is fueled by the creativity to mesh win/win economic
environment.                                                               strategies for both investors and borrowers.
   “If you understand what’s happening to our country, you can                For those seeking funding solutions, MMG Capital gives
actually capitalize on the opportunities that are being presented,”        borrowers flexibility. Because they are an asset-based lender,
he explains.                                                               MMG Capital can fund deals quickly and without concern for
   Robert Marlin, a mentor and advisor to MMG Capital, recently            credit score, financial reserves or income verification.
explained to Gleason that the real estate rule of “location, location,        One of the problems for those heavily involved in real estate or
location” is not as important today. Now, it’s all about timing,           for those who are self employed is lack of income verification. >                                                PAGE 29 • 2011                                          
   Another issue for many investors is Gleason, who obtained his bachelor’s in the years to come.” This investment
liquidity. Gleason lends to high-net worth degree in finance from the University philosophy reveals just how conservatively
individuals, those who already have of Southern California and an MBA MMG Capital values their assets in order
significant equity in real estate or other in Financial Planning from California to properly secure their investor’s money
assets.                                       Lutheran University, has direct experience from danger.
   MMG offers a lifeline to deserving with several alternative investing strategies.        “An important part of investing is
individuals in today’s hostile financial He has owned dozens of properties planning for the worst-case scenario,”
climate.                                      throughout the country and is well versed Gleason explains. “In the case of lending,
   One noteworthy aspect of MMG in multiple real estate scenarios.                       assuming you’ve made a good loan, the
Capital’s approach towards investors is          His flagship office, located in Florida worst case scenario is that you could wind
their focus on collaboration. Using a one- and operated by a partner, allows MMG up having to foreclose on your borrower.”
on-one approach, investors are encouraged Capital the ability to do something very          Foreclosure may drive fears into the
to participate, learn and grow with MMG few hard-money lenders can do: fund deals mind’s of investors, but Gleason explains
Capital.                                      across the nation.                         that foreclosure is merely your legal
   Investors     can     hand-pick    those      Although the company’s wide area of right as a lender to force liquidation of
investments they wish to be a part of. This operation seems risky, the company is your collateral in order to recoup your
provides individuals with the benefit of conservative in its investing approach. investment because your borrower failed to
having a direct impact on their investment “Now isn’t the time to be taking risks,” uphold their obligation to repay.
portfolio, rather than simply giving MMG Gleason says, adding, “Now is the time             For an investor, a foreclosure on an
Capital their money and then wondering to be guarding your capital and taking asset with lots of equity is not viewed as
how it’s being managed.                       a conservative approach. Nobody really a catastrophe, instead it is merely seen as a
   Most of the investments, which I knows how bad things are going to get temporary cycle in the life of an investment
reviewed with Gleason in his                                                                            asset. The real estate is still
Southern California office,                                                                             there, it has not vanished
averaged less than a 40% loan-
to-value ratio and spewed 12%             MMG Capital Provides                                          into thin air like paper assets
                                                                                                        do in a turbulent market
to 14% returns, the loan was
secured, in some cases, by
                                          Investors with Options                                        turn.
                                                                                                            Perhaps the most
multiple properties.                                                                                    unique benefit to working
   “We leave at least a 60%           Following are some key aspects that make MMG                      with MMG Capital is
equity cushion in there, we           Capital so unique in the marketplace.                             their investors actually
want the borrower taking more                                                                           review potential deals
risk than we are,” Gleason                                                                              and give them a thumbs
explains. While he admits               • MMG Capital employs their decades of frontline                up or thumbs down. This
that no investment firm in the        experience with investors and professionals on the                allows individuals to
world can guarantee a return,         ground to research the market and find only the                   invest the amount they are
MMG’s conservative approach                                                                             comfortable with, in the
ensures an extremely low risk
                                      very best investments.                                            time frame that suits them,
to investors and offers “one            • When comparing investments made by similar                    with an investment they can
of the best risk-return ratios        lenders, MMG Capital is the most conservative                     be proud to place in their
available in the marketplace.”                                                                          portfolio.
                                      company of its kind.
                                                                                                            “Safety, security and
     Here is an example of              • Investors call the shots when it comes to their               consistency are three words
    a typical MMG Capital             money. They decide how much and where they want                   that we use around our
   investment transaction:                                                                              office all the time,” Gleason
                                      to place their hard-earned investment capital by
                                                                                                        says. “Our investors sleep
   A borrower owns a $1               choosing the specific deals they want to be involved              well at night because they
million property and needs            in.                                                               know that they aren’t going
some cash to purchase                   • MMG Capital offers some liquidity in an illiquid              to wake up in the morning
inventory for their business.                                                                           to find out that their
MMG Capital will make                 environment where investors have the ability to get               investment is in trouble,”
a $200,000 loan to them               their capital back when they need access to it.                   Gleason says.
and secure it with their $1             • No required minimum investment — the comfort                      MMG Capital offers
million property. Even if                                                                               an investment vehicle
the property loses half of its        level MMG Capital provides is second to none.                     unlike any other in the
value over the next 12 to 24            • A nationwide network of mortgage brokers                      marketplace. It is one that
months, the $200,000 MMG              ensures that there is never a shortage of opportunities           will pay an investor a
Capital loan is still secured                                                                           consistent return and offer
by $500,000 of equity.                for analysis by MMG Capital, of which only the best               them the protection of a
   As an investor himself,            deals are brought to their investors.                             well-secured loan.
MMG Capital’s

               re you aware
               that with as
               little as a few
dollars an investor can
own a share of a loan
that is secured by luxury
or commercial real estate
generating up to double-
digit returns? Yes.
    If you are an investor
fed up with dismal returns
at your lending institution,
it’s time to introduce
you to MMG Capital’s
Liquidity Program. This
program, automatically
extended to every MMG
Capital investor, ensures
that if liquidity is needed,
the investor can get their
cash back; even in the
middle of the term of the
    For example, let’s say
an investor has money
trapped in a CD, or a
money market account
bringing in the standard
0 . 7 5 % , i t ’s b a s i c a l l y
just sitting there losing
purchasing power every
day. The investor wants to
put the money to work in
a safe, secure investment,
but they are a busy
professional: They have
a company to run, family
to relax with, vacations
to plan and a life to live.
What can investors do?
They can lend their money
out to other high-net worth
individuals who qualify
for the MMG Capital’s
funding program.                              time with only a few month’s notice.                and one where you’re making double digit
    They, along with other investors, can        MMG’s Capital Liquidity Program                  returns, month after month, is a simple
participate in assisting other individuals    offers flexible options for investors who           phone call to MMG Capital. Contact us
who have substantial wealth and assets,       seek shorter-term exit strategies, but realize      today and see what double-digit returns can
but who may not qualify for traditional       that real estate is still the best place to store   do for you.
funding.                                      their money.
    One of the best and most unique aspects      If you are an investor facing dismal             For additional information about Chris
of this program is that investors can         returns on your hard-earned money, all that         Gleason or MMG Capital, please contact:
withdraw their principal investment at any    really stands between your current situation        310.295.1121                                             PAGE 31 • 2011                                          
                                            Market Spotlight: BIRMINGHAM
                     Birmingham, Ala.         seeing right now in Birmingham?                 Chris: Our products work, plus we always
                     COMPANY:                 Chris: We are acquiring homes from asset        try to under promise and over deliver. If
                     Premier Equity Group     managers, banks, foreclosure sources, short     you are one of our investors, you are on our
                     CONTACT:                 sales and general listings. Since we pay        team and you have a complete crew on the
                     Chris Donaldson          cash and have a good reputation for closing     ground. This is so important since we all
                     ph: (205) 201-6663       quick, we get excellent deals. This allows      know that property management can be the
                                              us to pass on the savings to our clients. For   difference between a good and bad invest-
Question: How is your market handling         example, we are able to sell
the economic slowdown?                        all-brick 4 bedroom, 2 bath                                           The Donaldson family
Chris: Birmingham is not a “peak and val-     homes that are about 1,500
ley” market. We are slow but steady in ap-    square feet and recently
preciation as well as decline. We average     remodeled for around
about 2.5% per year. We also have a huge      $65,000. These homes are
workforce to keep our economy stable.         already under management
The largest employer, the University of       and cash flowing with rents
Alabama at Birmingham, has 53,000 stu-        at $850 to $900. These
dents and employees. It was also named in     houses have had past retail
the top five hospitals in the nation. Many    sales in the low $100,000s
professional athletes and entertainers come   and are incredible deals.
to Birmingham to be seen by Dr. James An-     We have been able to nar-
drews, who was named the “Most Valuable       row our searches down to
Person in Sports” by CNBC. We also have       the most desirable neigh-
several large auto plants, Honda, Mercedes    borhoods and in the best school systems.        ment. We always invite our clients to town
and Hyundai, all contributing to our labor    In fact, our main area of focus is where I      to see our operation and get to know us on
markets. Birmingham’s charm, low cost         personally grew up through elementary           a more personal level. We like to think that
of living and being on the cutting-edge of    and high school.                                our Southern Hospitality does us good ser-
technology is positioning us to compete on                                                    vice. Also, many people have no idea how
a global scale.                               Q: What is the best part about being an         beautiful Alabama and Birmingham are.
Q: What kind of opportunities are you         investor in your market?                        It’s a great place to live and raise a family.

  LARGE EQUITY AND POSITIVE CA$H FLOW                                            PAGE 32 • 2011                                         
Q Why should investors from          sors. We use a web-based man-
afar invest in Birmingham?           agement software called Prop-
Chris: For the last four years       erty Ware. It allows the owners
we have been selling turn-key        to see all of their statements,
homes to out-of-state and out-       work orders and leases in their
of-country investors. It is our      own password protected portal.
main area of focus and basi-         It also has allowed us to move
cally our entire client base.        to direct deposit systems and
We have learned and adapted          many other great improvements
to the needs of someone who          to help our growth. Also, our
may have never stood in front        leasing team is about as good
of their property. We do our         as you will find. We operate at
best to provide pictures, video,     near 100% occupancy unless
Google Earth snapshots, any-         there is a house undergoing re-
thing to give the clients the best   pairs or waiting on an inspec-
information available for their      tion.
due diligence. We are with the
home from beginning to end.          Q: What investing tips do you
We purchase it, we remodel, we       have for our readers?
place the tenant, we put it un-      A: Get out there and visit the
der management. So, we really        area you are going to invest in.
know the house and occupants         Make sure your property man-
better than anyone.                  agement team is in place and
                                     are willing to help. Never be
Q: What makes your compa-            nervous to ask questions and
ny unique?                           inquire about school systems,
Chris: We are normal people try-     crime, taxes and other impor-
ing to stand out in a sometimes      tant issues. Many people will
very difficult and overcrowded       buy on an impulse, don’t do it.
business. I think many people        In the world of investing in sin-
can relate to this statement.        gle family homes, you need to
This industry has been ravaged       take the “get rich slow” route.
by unscrupulous sales, bad           Take it one step at a time and
foreclosures, market declines,       get with someone you trust or
mortgage changes and even            have built a relationship with.
federal law. Despite all that, we
have been able to weather these      Q: What is your real estate
storms and continue to provide       or management philosophy?
excellent products. When you         Chris: I read as a young man
meet us, you’ll see we are not       that 80% of the world’s mil-
living the rich life, driving fan-   lionaires were in real estate. I
cy cars. We are just family men      think that day I became a real
trying to be good fathers and        estate investor, at least in mind.
husbands.                            It was always a goal, something
                                     that I knew would be in my fu-
Q: What kind of programs do          ture. Now that it is my job, I’ve
you currently offer?                 learned to love the business. I
Chris: Right now, we have a          truly believe in our market, I
cash purchase discount and we        buy homes next to the ones we
also offer very generous refer-      sell, I own apartments in our ar-
ral fees. The buy-and-refi days      eas of focus. It is a good feeling
seem to be over, but we are still    to drive down a street where we
talking to mortgage companies        remodeled two or three houses
to try and find the best programs    and know that we were partly
for our buyers.                      responsible for the renewed in-
                                     terest in the neighborhood. If I
Q: Do you have your own in-          can do all that and give my fam-
house management?                    ily a comfortable retirement, I
Chris: Yes, Impact Realty Advi-      think I will have won.
                                                                                   (796-3896)                                                PAGE 33 • 2011
                                                  Market Spotlight: CLEVELAND
                 Cleveland, Ohio
                 COMPANY:                                    market in the nation with this        Sean: The owners have over 100 years of
                 BH&R Properties                             much construction going on. We        combined experience in real estate and
                                have a new lakefront develop-         have a large portfolio with homes rang-
                 CONTACT:                                    ment, The Lakefront West Proj-        ing from $35,000 to apartment complexes
                 Sean Whalen, CEO                            ect, a new billion dollar casino,     worth millions. We also have 40 years of
                 ph: (216) 240-7363                          as well as a new shoreway proj-       combined experience with new retail com-
                                                             ect. Plus, there is a new conven-     mercial construction and management. Our
Question: How is your market handling             tion center being built and additions to the     deals are priced below market value with
the economic slowdown?                            Cleveland clinic hospital as well as a new       great cash flow and appreciation.
Sean: The slowdown has actually been              university health campus.                        Q. Do you have your own in-house man-
great for business. It is a catch-22 in that      Q: Why should investors from afar in-            agement?
you have to have cash in order to take ad-        vest in your area?                               Sean: I think management is the most im-
vantage of the market. We are fortunate           Sean: Cleveland is growing and it has a rich     portant key to success. Your investment is
to be in a positive position and are able         history. It has one of the oldest and most es-   only as good as the management behind it.
to take advantage of the down market and          tablished arts culture                                         We have our own in-house
low prices. In turn we are able to then pass      in the nation. The                                             management staff, which is
these savings on to our investors.                Cleveland museum                                               overseen by our company
Q: What kind of opportunities are you             of art is undergoing                                           Q: What is your real estate
seeing right now?                                 a $150 million dollar                                          or management philoso-
Sean: Due to the foreclosure crisis, we are       addition and renova-                                           phy?
seeing prices from 30 years ago. The hous-        tion. Also, Playhouse                                          Sean: Well, we only buy in
ing stock, like the rest of the nation is plen-   Square is the second largest live theater        GOOD areas. This can’t be stressed enough.
tiful. Due to the strict lending standards,       district in the nation. Cleveland is located     By buying in solid and safe areas, it makes
we are finding a large demand by renters          on the shores of Lake Erie and it has the        management that much easier. You can
who are unable to finance a home purchase         largest metropolitan lakefront in the world.     then attract the type of clientele you want
and therefore must rent.                          We also have the third most visited park         to rent your units. We also stress buying in
Q. What is the best part of being an              system in the country, Cuyahoga Valley, a        predominantly owner-occupied areas.
investor in Cleveland, Ohio?                      national park with over 22,000 acres. Our        For more information, visit:
Sean: The best part is seeing all the growth      city is both affordable and family friendly.
taking place. I think Cleveland is the only       Q: What makes your company unique?               or
  Monopoly on Baltic... pg. 15     tans. The internet is full of web

                                                                            Investment Tools
                                   sites purporting to sell bulk
seller financing (also called      REO lists; however, some of
land contracts, contracts for      these lists are fraudulent, and

                                                                             Proven to Work!
deed, or installment contracts).   others contain truly unsellable
The investor’s name remains        properties — burned out shells,
on the deed for the term of the    vacant lots and uninhabitable
agreement while the owner-         mobile homes. In order to
occupant makes monthly pay-        navigate this challenging mar-            Rental Property Analyzer is a great piece
ments. The owner-occupant          ketplace, trusted mentorship
also has full responsibility for
                                                                              of software designed to eliminate the
                                   from a reputable list broker is
taxes, repairs, and upkeep of      imperative. Do your diligence.             guess work out of purchasing property
the property. At the end of the    Ask for references. A reputable
term (15 to 20 years) the deed     company will happily provide
is transferred to the owner-oc-    more than five references from
cupant. Meanwhile the investor     non-relatives! Find out about
makes a significant return on      after sale support and get it in
the initial investment.            writing. Ask about fees. Some
                                   companies hide their fees, oth-
         For Example:              ers offer full disclosure, but all
Bulk purchase price:               companies charge fees. Finally,
$12,000 (one house)                take the plunge. The market for
Sale price: $37,000                severely undervalued homes
Down payment: $1,000               will dry up. Will you be the
Financed price: $36,000            person with an income produc-
(15-year, 9.5% interest)           ing portfolio to see you through
Amortized over 15 years:           your golden years? Or will

$67,500                            you be the person saying, “If
Less purchase price: -12,000       only….”
Return on investment:
$55,500                                   Why Good Folks
  Passive investors who want               Can’t Get Loans                   Developed by the
access to the great returns, but      1. Banks don’t make loans for              founders of
don’t want to set up a business    less than $60,000. The value of ,
to sell houses to individuals,     most of the bank-owned homes              this software tool:
can buy into the business. They    are $50,000 or less. Without             •Takes the guess
purchase the land contracts and    private financing, these houses
the underlying properties from
                                                                            work out of buying
                                   will continue to sit vacant.
active investors who are look-        2. Many low-income fami-              •Compares multiple
ing for cash. These contracts      lies struggle to keep a good             properties at once for quick best-buy decisions
are sold at a discount, which      credit score. Banks don’t like           •Accounts for hidden costs to prevent
offers even more upside for        this. The savvy private investor         costly rehab surprises at the end of the job
the passive investor. For ex-      knows that credit scores do not
ample, a 15-year, 9.5% interest    predict the ability of a person to       •Provides estimate of current property
contract with a face value of      pay a mortgage. The monthly              value based on the condition of property
$36,000, bringing                           payment is the predic-          •Provides solid repair cost estimates
in $375/month, can                          tor, right-priced loans         for renovation projects
be had for $26,500.                         get repaid.
Over its term, the
                                                                            •Supports up to 20 financial options
contract will bring                        Lori Greymont is                 for comparison purposes
in $67,500; that is                        CEO of Summit As-                •Has charts, graphs, and tables for cash flow
a 40% return on in-                        sets Group. She offers           analysis and future profit projections
vestment.                                  educational presenta-
                                                                            •Projects the After Repair Value of a property
                                           tions around the U.S.
   Buyer Beware                            plus trains and men-             based on size, location, and rehab work
  Bulk REO is an                           tors people new to bulk
exciting and fast-                         REOs. Her company
                                                                            Invest In Your Business, Invest in Your Future,
paced business, but as with any
potentially high return invest-
                                   sells bulk lists and seasoned
                                   land contracts. For more infor-          Invest in the Rental Property Analyzer
ment, there are many charla-       mation, call 1-888-440-6826.                                              PAGE 35 • 2011                               
                                                                              Market Spotlight: INDIANAPOLIS

                                         Indianapolis, Ind.
                                                                                about fires, hurricanes or natural disasters.                     Q: Why should investors buy in India-
                                                                                Our clients come from New Hampshire to
                                                                                Marina Del Rey, CA, as they have found
                                                                                                                                                  Michael: It’s the perfect storm. Indy has

 �                                                                              consistent income with their Indianapolis                         the three keys for rental real estate: It’s a

 ������                                  Michael Drew                                                                                             capital city, it has nearby universities and
                                                                                properties. Opportunities abound for inves-
 ���                                       ���� ������ ��� �����
                                         ph: (614) 323-3739 �����                                                                                 a diverse economic base. On top of that,
�                                       ������� ���������                       tors who want to leverage their retirements
                                                                                without stock market exposure, or for those                       our company has spent the time and mon-
  �                                     �������������
                 Question: How is your mar- ���� ����� ���                                    ������������������
��                                      � � � � � �                                          seeking positive cash flow on                        ey to develop the proven systems needed
                 ket handling the ������ ���                                                  ������������������������
                                                                                             15 or 30-year mortgages.                             to make it all work. The rental market is
 ����            slowdown?���������� ��� �������
                                                                                                                                                  strong, the performance is consistent and
 �����           Michael: We have felt a
                          �����������������������                                                 �������� ��� ��������
  �              steady rebound for the latter
                          ����������������������                                                Q: What is the best part of
                                                                                                �������� ���� �������� �����                      we also own in the same areas you do!
                 part of ���� ����� ��� ����� ������
                          2010. Our prices are                                                  being an investor in your
 �����                    ����� �������� ����� ��                                               market?
                                                                                                ����������������������������                      Q: What makes your company unique?
  �              remaining low, taxes are low
                          �������� ���� ���������                                               Michael: The best part of be-
                                                                                                �������������������������                         Our company is a third generation family-
 ������          and demand is increasing. I                                                    ���������� ������� ������
                          �������������������������                                             ing an Indianapolis investor                      owned and operated business. Our experi-
                          ���� ���� ����� strug-
                 think people will still����� ��                                                ���������������������������
 �                                                                                              is the confidence we have in                      ence ranges from deeply discounted acqui-
                 gle to qualify for new homes,
                          ������������������������                                              ����� ����������� ����� ��
 ����                                                                                           our market and company. Our                       sitions to millions of dollars in completed
                           company decided to
                 so our ��������������������������                                              ������������������������
  ��                                                                                            family-owned and operated                         rehabs, to over 15 years of property man-
������           build new homes for them to
                          ������������������������                                              �����������������������������
                                                                                                team has 15������� ���
                                                                                                �������� ������ years property                    agement service.
 �                          Each property ��
                 live in. ������ ��������� gets
  �              close to 100 inquires so ���
                          ���������� �������
                                                                                                ��������� ���� experience
                                                                                                management ������� ��� with
���                       ��������������������������                                            a hands-on management style
                                                                                                ��������� ������� ���� ��                         Q:. How long have you been personally
                 rental market remains ��������� ���� �����
                          ���������� ��������                                   ��������������������������������������
 �����                                                                          and a 90% repeat business rate. We are                            investing in real estate?
                 tremely�����������������������������������������               �����������������������������������������
                                                                                here to build relationships with our inves-                       My partner, Quenton Adkin, and I have
��������                  ����������������������������������������              ���������������������������������������������
  ����������� Q: What kind of opportunities are you
                          ����������������������������������������              tors and when they fly into town and see
                                                                                ����������������������������������������                          been investing for 15 years.
 ��              seeing in this market?
                          ���������������������������������������               the $1.1 billion-dollar new airport and
                                                                                �������� ����� ��� ������� ������ ���� ����� vari-
 ������                                                                         ous other city improvements, it all makes                         Q: Is there any special financing avail-
                 Michael: Indianapolis remains the place for
                                                                                sense.                                                            able or programs available?
 �������         cash flow. The place to own and not worry
                                   ������ ��� ����� ����� ��� ����
�������                            �����������������������������Matt’s
                                                                                                                                                      Home Buying

�������� ��� ��������
��� ������������� ��          ������������������������������������������        �������������������������������������
����� ������ ����������       ������������������������                          ����������������������������������
���������������������            ��������������������������������������         ������������ ��� ���� ��������� ������ ���
�������������������������     ������� ���� ���� ����� ���� �����������          ������������������������������������
                              �����������������������������������������         �����������������������������������������           purchase online at:
 ��������������������         �� ���� ������ ������ ����� �� �������� ����      ����������������������������������������                    
����������������������        ����������������������������������������          ��������� ����������� �������� ���� ���
 ��������������               ����� ��������� ����� ����� ���� ������������     ����� ����� ����� ����� ���� ��� ���� ��������          Write a testimonial and
 �����������                  ������ ����� ���� ���� ������������ ����          ����������������������������������������                receive a complimentary
                              ����� ���� ���� ������ ����� ����� ����� ��       �������������������������������������
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                                                                                                                          FREE workbook on achieving your goals,
                                                                                ���� ����� ��� ����� �������� ��� ��� for any business... call to learn how!
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                              ��������� ����� ���������                         ��������������������������������������
                                                                                                                                NEW Investment Program...
                              ��������� ���� ���� ���������� ������ ���                                      �������������������                              A real estate training program that will include
                                                                                                                                                              an investment property with the training!
                                                                                                                      Only 7 investors who want to take action will be accepted.
                                                                                                                      (mention code RP2R2010 to get an application)

                                                                                                                                Award Winning National
                                                                                                                                 Relocation Specialist
                                                                                                                      Most Outbound Referrals for Prudential CA. Realty 2009            Matt Malouf,
                                                                                                                                                                                        SFR, RSPS, GREEN
                                                                                                                                                            Lic # 01811908
                                                                          PAGE 36 • 2011                                                                 
Michael: We have a mortgage team that           Home Replay’s Property Analyzer, pg. 27            The Property Analyzer program is easily
can assist investors and can get almost any                                                      customized to suit each real estate market
deal done. With that said, our business is      ●roof and foundation                                              and can help you quickly
typically 70% cash. The properties are too      ●plumbing and electric                                            determine how changes
easy to acquire for cash at these prices.       ●HVAC (heating, ventila-                                          such as the offer price or
Also, we encourage our clients to check         tion, air conditioning)                                           financing terms will af-
out rolling over their IRA to a Roth and in-    ●walls and ceilings                                               fect your investment op-
vesting with that, that way, their monthly      ●floor                                                            tions.
rental income is tax-free. For more infor-      ●kitchen                                                            If you’re a REALTOR®
mation on that, check out our free ebook:       ●bath                                                             or listing agent, the Prop-                         As you walk through a                                          erty Analyzer can help
                                                home, you will rate each                                          you find those homes,
Q: What tips do you have for us?                of the nine areas from zero                                       which will suit the in-
Michael: It’s all about relationships. We       to five, with zero stipulating that no repairs   vestment needs of your clients — making
urge readers to contact us, have a conver-      are needed in that area. Then, when you’re       your phone ring off the hook with investors
sation, come out and take a visit and see       ready to use the software, you simply en-        who want to hire you!
if there is a match. Much of our business       ter a small amount of information on each            What the Property Analyzer program
comes from our clients in California, so        property (up to eight homes can be com-          does is simply prevent you from buying
I’m out there often. Investors can set up a     pared), stipulate the financing options and      the wrong property. And in the current eco-
meeting with me while I’m there.                establish a few investment rules and fixed       nomic climate, making informed financial
                                                expenses.                                        decisions can make all the difference be-
Q: What is your real estate or manage-             The software will use the data you’ve         tween keeping and losing your investment
ment philosophy?                                entered, which includes information such         capital.
Michael: Respect. It is necessary, but often    as where the house is located, the ratings           The Property Analyzer in excel version
uncommon in our business, specifically          you’ve given each home, square footage,          is available on
when dealing with tenants. Our investors        etc., to calculate the costs involved and po-    A web version is also available and can be
want performance and as a property man-         tential profits derived from the deal. The       obtained at
agement company we treat our clients with       final calculations are then displayed in an      For more information on how the Prop-
respect as it is essential to keep a property   easy-to-read and understand format, mak-         erty Analyzer can increase your profits,
maintained and performing.                      ing your buying decision that much easier.       contact Gary Geist at 202-841-1821.

                   in REAL ESTATE Financing
                                                                                                                          Eddie Sp by
                                                                                                                          The Lea eed
                                                                                                                           Authorit g
                                                                                                                          on Note y
                                                               Here’s What You Get:                                               s!

                                                               • 12 CDs • Two Self-Study Workbooks
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                                                               • FREE Online Tutorial
                                                                                                      Plus SPECIAL BONUS!
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                Both for Special Price $747                                               PAGE 37 • 2011                                        
                     by Mike Woo

            rom today’s date until 2014,
            we are predicting the start of
            the downfall of commercial
            notes. For residential real
            estate, we are also predicting
a downfall, which will start in 2012. We
can predict this based upon the number of
notes that are set to mature. The whole
sub-prime mess was created by zero
down financing, so be very wary of seller
finance in your transactions during this pe-
riod. There is a highly probable scenario
of both a commercial and residential real
estate decline in value over the next five
   The good news is that with any down
market there is extreme opportunity to
grow and succeed. For the next four years
we have the opportunity to create the          Many investors love multi-family and I           complexes and also in 4 plus star hotels
best commercial system for ourselves. In       do too, when it makes sense for cash flow        as well. They have high demand for areas
2012, we are going to see the largest num-     positive investments. Feel free to take a        such as New York City, California and
ber of foreclosures to date when prime         look at my last article in this publication to   other capital appreciation sub-markets like

   Commercial Trends Lead Savvy
    Investors toward Success
mortgages are going to reset for resi-        see our views on cash flow.                       Arizona and Florida. Longfin Invest-
dential home owners. This will severely         Longfin Investment Solutions helps              ment Solutions provides these type of
drop housing prices in the foreclosure        numerous investors in locating the best           opportunities for clients. Depending upon
and shorts sales markets and make life a      properties nationally. Our commercial fo-         location, we can often provide properties
whole lot harder for residential flippers     cus is on apartment complexes and hotels.         at $0.50 of replacement cost or previous
in California. It’s another potential for     Over the last three months there has been         value. Our system enables the buyer to
disaster for both investors, speculators and a strong movement in the hospitality busi-         purchase at a discount and not have to
the American people.                                      ness from both the buyers and         manage a chain of referrals or sign an
So many investors are                                     sellers. Due to the increase of       MFA for a bunch of strangers. They deal
very much involved                                        the stock market from last year,      directly with us as the principal.
with short sales and the                                  which is a rebound from the              For those readers who may have con-
foreclosure markets,                                      decline of 2008, hedge funds          nections with buyers who are looking
its a very popular place                                  and retirement fund managers          for apartment complexes and hotels, let
to be right now. But                                      have been infused with cash           us know. Longfin Investment Solutions
being popular is not                                      and are purchasing under-             is seeking marketing partners who are
always going to lead                                      valued assets that require little     interested in making six-digit profit shares
to success. Many of                                       maintenance or work. Since            on a single transaction. Please visit our
us in today’s economy                                     these hedge funds, private            website and get connected to our classes
should strive do less                                     equity funds, REITs and pen-          at:
popular applications                                      sion fund managers are not               In closing, I would like to share our
and look for the up-                                      investors and are not inclined        company motto: “We are measured by the
coming trends. Warren                                     to manage a serious reposition        lives that we touch and the influence and
                                             Mike Woo
Buffet says, “Be fearful                                  or solve a human problem, they        leadership that we can bring to the people
when people are greedy                                    prefer to purchase properties         who want to learn more and desire to
and greedy when people are fearful.”          that are performing, have high demand             unlock their true potential.”
   Longfin Investments has identified a       and have current occupancy. They have             To reach Mike Woo, please email him at:
trend in the commercial marketplace.          been very active in A/B grade apartment                                              PAGE 39 • 2011                                         
                     by Linda Pliagas

       t was a beautiful sunny morning in
       Arizona on the day the Ultimate In-
       vestor’s Tour was planned. Dozens
       of eager investors met up in Tempe
       and loaded a sleek black bus in
search of discounted properties in Phoenix,
Meza, Gilbert and Queen Creek. The team
at Black Belt Investors, led by Sensei Gil-
liland and his charming wife, Annamaria,
organized an educational event that drew
investors from California, Nevada, Michi-
gan, Utah and Indiana.
   The first stop on the tour early Sunday
morning was a trip to meet Sensei’s local

  Investors from 4 States Hit AZ
  for Black Belt’s Property Tour
“power team”. Inside his luxurious modern       ing at just $37,000 it’s no wonder that the       very well. On average the time to get a
office in Mesa, Sensei introduced his con-      team has transacted over 900 deals this           house occupied is between three to six
tractor, listing agent, property manager and    year alone!                                       weeks.
insurance specialist. Because Black Belt           Investors from around the nation, as well        “Focusing our sights on new houses in
Investors specializes in buying locally at      as abroad, are attracted to the Phoenix mar-      desirable subdivisions attract better rent-
the county’s court house steps, the proper-     ket because they are able to secure practi-       ers, which give the investor more stability,”
ties are at absolute “cash only” discounts.     cally brand new homes for approximately           Sensei explained during his tour.
   What makes Sensei’s real estate invest-      50% below builder’s cost.
ing program unique is the fix-and-flip sys-        Next, Black Belt Investors will take care
tem he has personally developed to help         of the entire rehab process after the prop-
his investors generate cash today, which        erty is purchased at auction. Their goal is
can then be transferred into creating wealth    not to sink a lot of money into the rehab
tomorrow.                                       but merely to bring the property up to
   This Remote Rehabbing system is ideal        standards to entice an owner-occupant to
for those investors who may not have the        purchase the property from the investor at
time or experience to buy, fix and flip prop-   market value.
erties. They are seeking the help of Black         “We want to get in and get out,” Sensei
Belt Investors to quickly earn substantial      admits of the rehab process. Often the prop-
sums of cash without having to do any of        erty will only require cosmetic repairs: new
the leg work. It’s also perfect for the buy-    paint, new carpet and minor landscaping.
and-hold strategist who desires massive            Speed is important in the fix-and-flip busi-      If you’re ready for a new way of profit-
cash flow through very inexpensive newer        ness, every day the property sits, it eats into   ing from real estate, be sure to attend the
houses.                                         the investors’ pockets. Black Belt Investors      next Investor’s Tour to learn if Remote Re-
   Sensei’s Remote Rehabbing program            knows how important time is, therefore the        habbing is the right way for you.
can be activated                                                    period between acqui-            Black Belt Investors is hosting another
with a simple phone                                                 sition and deposition         Investor’s Tour in March. The event will
call. Either Sensei                                                 takes approximately 97        consist of a one day educational confer-
or one of his Suc-                                                  days with typical profits     ence. The next day, investors will spend
cess Managers will                                                  ranging anywhere from         time evaluating properties and discussing
spend time with                                                     $8,000 to $25,000 per         the best way to generate cash and build
you to help accom-                                                  transaction.                  wealth in today’s Phoenix market.
plish your real es-                                                    For the buy-and-hold
tate goals.                                                         strategist, the rental        For more information, please call Black
   With prices start-                                               market is treating them       Belt Investors: 951-280-1900                                              PAGE 40 • 2011                                          
                                    Are We Forgetting
                                 How to Communicate?

                                                  recommending a plan or action. Those were          ing. You send an email and wait for a re-
                                                     the hard calls but the most necessary. The sponse. Someone tells you they
                                                 ������������������������������������������� ������������������������������������������ will call
                                                     easy calls were                                        you back tomorrow and they don’t.

                                                 ������������������������������������������ �����������������������������������������
               by Charles Salisbury

                                                     the ones to affirm                                     People make commitments
           ������������������������������������ ���������������������������������������� �������������������������������������������� and then
        ometimes I am critical of different������������������������������������������ �������������������������������������������� for prod-
           ��������������������������������          some profitable                                        forget them. Advertisements
        sales and marketing people because������������
           ���������������������������������         transaction so I                                       ucts on radio and TV are not
                                                                                              �������������������������������������������� truthful
        I really believe that they’ve lost the �������������������������������������� ���������������������������������������� dishon-
                                                     could gloat a little                                   and you know it. It seems like
ability to communicate, which results in���������� ���� ��� ��� ���������� ���� ������������������������������������������� than no
                                                     about my talent to                                     est communication is worse
 ��������� ��� �������� ��� ���������� ��� ���������� good invest-
poor service or no service at all.                   select ����������� ������ ���� ����� ��� �������������������������������������������
                                                                                                            communication at all.
 ������������������������������������������ ������������������������������������������� ������������������������������������������will lie to
   I admit that I am biased because I was ments. But, both                                                      There are those who
raised in the Midwest and have retained���������������������������������������� ��������������������������������������������
                                                     good and bad news                                      you with no remorse. Students are no
 ������������������������������������������ ����������������������������������������� ������������������������������������������
the values that are associated with the older must be communi-                                              longer concerned about the penalty
 ������ ��� ������ ����� ��� ������ ������������ ������������������������������������������� ����������������������������������������������
generation. I know there are a different set cated quickly as                                               for cheating in school or business.
 ������������������������������������������ ������������������������������������������ �����������������������������������������
of values, and that fact has been validated�������������������������������������������
 �������� ��� ����� ����� ����� ����� ����������
                                                     it is important to clients and demonstrates We have to screen those who communicate
 ������ ��� ����� ���� ��� ���� over a period good service.
by many associates of mine ���� ������ ��������������������������������������������� ��� ����� ���������� ���� �������� ��� It didn’t
                                                                                                      with us to be sure they are honest.
of 40 years.                                            You’ve heard the saying “no news is use to be that way. Or, am I just
 ���������������������������������������� ����������������������������������������� ����������������������������������������� caught up
  Some of the differences I see are the           good news,” well I want to tell you it’s not       in imagining the “good old days” as being
result of the meaning of “responsibility”         true. When you don’t make the call then the        more honest, more truthful and more de-

  Despite the new technology, my original concern remains the
                 The failure to communicate is growing and it is frustrating.
 ������������������������������������� ��������������������������������������������� ������ ����� ����� ����� ���� �������� ���
 ������������������������������������������� ����������� ��������� �������� ����� ������ �������������������������������������������
 ���������������                                ��������������������������������������� �������������������������������������������
versus “irresponsibility.” ��� �����that there������������������������������������������ ������������������������������������������ more than
    �� ����� ����� ���������� I admit �����        client thinks that something is wrong and pendable? Who can you trust is
is an age bias in addition to a training and��������������������������������������������� emails a slogan now. It is a normal defense for do-
 �����������������������������������������         they worry. Answering calls and              �������������������������������������������
 ����������������������������������������� ������������� �������� ��������� ���� ��������� ������ ����� ����� ��� ����� �������
upbringing bias.                                   takes little time. Failure to return them cre- ing business.
 ����������share some of my pet peeves and������������������������������������������� a ���������������������������������������� is respon-
   Let me ����������� ������� ����������           ates a lot more work as they have ten-                  One way to measure honesty
 ������� ����� ������ � ��� ���������� ��� ���� ���������� �������� ���� ���� ������� ��� �����
see if your age and attitude lets you relate dency to build and increase in volume ������������ and siveness. Honest people return phone calls
 �������������������������������������� ������� ���� ����� ����� ����� ���������� ���             �������������������������������������������
to some of my biases. Let’s start with a may create stress as you worry about the promptly and answer emails quickly. After
 ������������������������������������������ ������������������������������������������ �������������������������������������������
simple thing like returning phone calls or�������������������������������������������
                                                   calls you don’t return.                              all, they have nothing to hide and they re-
     new communication ����� �� ������ ������������������������������������������ they ally want your business and they want to
the����� ������� �� ����� ���entry: emails.           “Maybe they are mad at me, maybe ��������������������������������������������
   During my tenure in the securities indus- want to close their account, maybe �����������������������������������������
 ������������������������������������������� ���������������������������������������� they answer all your questions. At least that’s
try, I followed the lead of the most success-����������������������������������������� etc...” how I see it.
 ��������� ������������ ���� �������������         want to sue me, maybe it’s a creditor, ����������������������������������������
 ������ ��� and learned how ����������
ful brokers ������ ���� �����important it is��������������������������� Call immediately
                                                   Worry makes it worse.                                   I guess I am old fashion but I
                                                                                                ������������������������������������������ don’t like
to return ALL calls on the same day that �������������������������������������� might to be put on hold, I want to speak to a real
 ���������������������������������������           and find out the reason for the call. It ��������������������������������������������
they are received. So if a client or a pros-������������������������������������������� ������������������������������������������� to be able
 ����������������������������������������          even be good news.                                   person on the phone, and I want
 ��� called me and I ���������� ��� �����
pect ����������� ���� was busy with another��������� ����� ���� �������� ����to write letters to talk to people when I call them or have
                                                      Remember how we used ��������� �����������������������������������������
   was always quick to return calls. The to family, friends and ���� ��������� had them return the call the same day.
I������������������������������������������ �������� ��� ���� ��������� clients? Then you ������������������������������������������
reasons is simple: I didn’t know what they������������������������������������������� ����� ����� �������about �������� ���� �����
 ��������������������������������������            to wait for days for a response. We used to             How ����� you? Do you think we are
wanted until I did return the call. Maybe������������������������������������������� ����������������������������������������
 ���������������������������������������           do mail campaigns with response cards en- getting better or worse at communication?
they wanted to place ���������to buy or sell���������������������������������������� cards Let me know your opinion, email me at:
 �������� ����� ���� an order ����� ����           closed and wait for the postage paid ������������
something. Maybe they just had questions��������������������������������������������� suc-
 �������������������������������                   to be returned to see if the mailing was
    ����������������������������������������� ����������������������������������������
that needed to be answered.                        cessful.                                        ������������������������������������� day.
                                                                                                           Yes, I will respond the same
 ����������������������������������������� ����������������� do an email blast to thousands ������������������������������ at the publish-
   It is good service to communicate prom-            Today, we                                         PS: My new book is now
ptly and sometimes to assure the customer ���������������������������������������simple ers���������������������� bookstores soon. If
 ������������������������������������������        of clients and prospects adding the                       and will be in the
 �������������������������������������������� ���������������������������������������������             ������������������������
that you are there for them. The hardest          instruction “click here to register.” That’s       anyone would like to have an advance copy
calls to make, as well as return, are those
 ����������������������������                     communication in a new and faster way.             of “Living a Balanced Life, Body, Mind
made after a sudden decline in the market.        Despite the new technology, my original            and Spirit,” just email or phone me at
I remember making calls to clients telling        concern remains the same: The failure to           949-910-6028 and I will provide you with
them about losses in their investments and        communicate is growing and it is frustrat-         the content for free.                                                 PAGE 42 • 2011                                             
Success & Natural Law
                                                                                                                  — Stephen Crane (circa 1810)

                         by Bill Gatten
                                                itself: i.e., an uncaring obligation to fulfill   uncaring and perfect as the Universe, that
                           Let’s take a look    every need on every level without regard to       our hopes and prayers remain ineffective
                           at the eternal and   you or me or past prophets as individuals.        and unanswered.
                           inflexible rules     The Universe (‘God,’ if you wish) simply             Note carefully that despite the fact that
                           that control every   will not and cannot allow a true necessity        we don’t always get exactly what we want,
                           aspect of our role   to go unfilled.                                   the vacuums we create are ALWAYS re-
and circumstances within the order of the          And neither will it honor every idle hope,     filled (albeit, too often with little of any-
cosmos, along with the crucial part of our      prayer, wish or desire to be uttered by those     thing of significant value or importance due
beingness that the Universe plays in getting    who are unconvinced that what they’re             to improper planning). It is imperative that
you and me exactly what we need out of          asking for is truly ‘needed.’ It’s only when      when making demands of the Universe that
Life.                                           something cannot be lived without that it is      we — 1) know in advance exactly what we
    Although fully accessible twenty-four       absolutely guaranteed to be given to us.          need, 2) why we need it, 3) what we’re go-
houses a day, bear in mind that Universal                                                         ing to do with it when it arrives, and 4) that
Law lies totally beyond our realm of re-               Nature Abhors a Vacuum                     we have a place for it. That’s it! Nothing
ality…just beyond the quantum physical          Here’s a relevant but admittedly corny            more is required.
realm in what is known as the extra-local       analogy: Did you ever squeeze more tooth-            One must come to grips with the simple
or implicate realty, and is absolute, non-      paste out of the tube than you meant to,          fact that, no matter how many rain dances
malleable and directly perti-
nent to the tiniest aspect of our
physical existence.                “No one can ever have a true need that is not fulfilled.”
    A far too often disregarded
fact is that Universal Law, irrespective of     and then feel a bit of a twinge at having         we do, or how many gourds we shake at
its source, controls not only matter (the       wasted something? If so, were you aware           the sky, how many virgins we toss down a
stuff we can see and touch), but also sound     that when that happened, you could have           volcano neck, we simply cannot control the
waves, light waves, radio waves and hu-         positioned the tube’s opening against the         Universe, we can only seek to understand
man thought, as generated by the written        wastefully extruded goop and sucked it            more about it, and to develop an absolute
and spoken human word.                          right back into the tube? In order to do so,      faith in it.
    In other words, if we but ‘want’ some-      all you needed was to gently, and (very)             For example, no matter how hard he
thing we can just say so and hope for the       patiently, apply pressure to the sides of the     might try, a ship’s captain cannot control
best: but if we truly ‘need’ something (big     flattened part of the tube, creating a nega-      the sea; but by understanding it, yielding
difference), we merely have to say so, and      tive pressure at the tube’s opening. If we        to its power and working with it without
it is given to us.                              don’t rush the process and we trust in natu-      questioning it or attempting to change it, he
    No one can ever have a true need that is    ral law, the accidental spurt is drawn back       can remain in perfect control of his use of
not fulfilled.                                  to where it came from.                            it and allow it to provide all of life’s neces-
    This phenomenon is the result of the un-       This natural phenomenon quite obvious-         sities.
erring ‘functional objective’ of the Cosmos     ly occurs because our squeezing creates a            It’s only when the good captain would
                                                     vacuum, thus allowing Nature to do its       deign to challenge the power of Nature that
                                                      job by filling that vacuum with what-       it would turn against him and fail to assist
                                                      ever is closest at hand.                    him in his bidding, even to the point of kill-
                                                       Given the right preparation (i.e., mov-    ing him.
                                                   ing the opening adjacent to the spill),           As they say: “A red sky at morning
                                                   time (patience) and expectation (know-         means, ‘Sailor take warning.’ A red sky at
                                                 ing how natural law works), any vacuum           night is a ‘Sailor’s delight’ — and the ones
                                                we create within this sub-quantum physi-          wearing blue-blocker sun shades won’t al-
                                                cal existence of ours — anywhere in the           ter any of it.”
                                                universe — will inevitably be filled with            When we mortals insist on trying to con-
                                                whatever we introduce it to. It’s only when       trol and direct Natural Law (i.e., deciding
                                                we attempt to short-circuit the “Law” and         how soon, how much, what color, what
                                                force our will upon something as massive,         size, etc.), the voids we create can only be
re-filled with whatever may be      The fact is, however, that if it’s
at hand at that moment.             not on the table and you know
   In our toothpaste analogy        with certainty that it’s in the
above, it’s only positioning and    cupboard or in the refrigerator
applying the proper negative        just a few steps away, and you
pressure that fulfills our desire   need it… you have to reach for
to undo our mistake. Anything       it… it will not come to you un-
else can only result in the vac-    til you do!
uum being filled with plain old        It all sounds too simple I
air. That’s the Law!                know, but the secret to unlock-
   The Universe can only hear       ing the process and making it
our pleas when we need some-        work for you is merely — 1)
thing… never when we simply         identifying a deficiency in your
want or desire the otherwise        life that you know with cer-
seemingly impossible. What-         tainty must be eradicated (i.e.
ever we might be asking for,        lack of wealth, prestige, pow-
when we ask for a “red one with     er, position, love, self-esteem,
a white stripe down its side”       etc.); then 2) simultaneously
and the only one available is a     relinquishing a corresponding
red one with a gold stripe, the     self-serving desire that is rely-
Universe merely replies: “Sor-      ing on that very deficiency for
ry pal, but your request cannot     its own existence and fulfill-
be fulfilled at this time.”         ment…letting it go! For exam-
   It doesn’t tell us (because it   ple, if one’s deficiency is the
can’t and couldn’t care less)       ill health and social impact of
why. It just fails to yield what    obesity, then the obvious self-
we didn’t think clearly enough      serving need is overeating…
about before we asked…it            once that self-serving need is
doesn’t offer substitutes.          relinquished the deficiency no
   On the other hand, if we are     longer has nourishment and it
too non-specific in our com-        dies (i.e., the weight is lost).
mands, we may indeed end up            Other examples of some
with more of what we asked          debilitating self-serving needs
for than we bargained for or        might be: sleeping-in too of-
can properly steward, leading       ten; not getting enough sleep,
to excess allowing us to give as    watching too much TV; not
much of it away as possible…        reading; not keeping up with
thereby creating another void       the news; procrastination; not
to be filled with something else    studying; complaining and
of even greater value.              whining; blaming others for
   “Why is that?” one might         your own inadequacies; del-
ask. Well (as your father would     egating your primary obliga-
say, when you were 7), that’s       tions to others; smoking; over
just the way it works! Under-       indulgence in tobacco, nico-
stand it and use it! It’s here      tine, alcohol, pharmaceuticals,
for you every single second of      etc... (i.e., consider the guy
every single day of your life.      who complains about never
Idle prayers, wishes, hopes,        winning the lottery, who has
day dreams and even prayers         a moral need to abstain from
don’t do a thing until they are     gambling…then the guy who
converted to necessity…and          complains about his poverty,
doing so is often the most dif-     but who can’t resist heading for
ficult part.                        the casinos every weekend).
   Persuading ourselves that        All-in-all, the fact is that one
what we need and honestly           must always plan in advance
deserve is our birth right, is      for what has to be done, and
often beyond our capability         where the abundance will be
due to our having been incul-       housed when in manifests…
cated from birth that if it’s not   and know with certainty that
on the table…don’t ask for it.      it will.                                               PAGE 45 • 2011
                                                                                                                                                               Everyone Can Become An Entrepreneur, pg. 7

                                                                                                                                                            accepts his past mistakes posi-       one can shake it from his words
                                                                                                                                                            tively and continues with his         or it cannot be affected by the
                                                                                                                                                            present and future in the right       past experiences of the person.
                                                                                                                                                            direction so that his past shad-      Having a positive approach for
                                                                                                                                                            ows do not affect his dreams of       the future and thinking opti-
                                                                                                                                                            the future. Moreover accepting        mistically is the right way for
                                                                                                                                                            the reality of the present situa-     achieving your dreams and it
                                                                                                                                                            tion of what you are, what you        opens up more opportunities
                                                                                                                                                            have, what you do not have,           for you. Thus, it is now very
                                                                                                                                                            what you enjoy and what you           clear that our past, present and
                                                                                                                                                            cannot enjoy.                         future are all very interlinked
  Gorilla Marketing Group                                                                                                                                      Thinking about your duties
                                                                                                                                                            and responsibilities and for the
                                                                                                                                                                                                  and it can be controlled in the
                                                                                                                                                                                                  manner we want.
   Our company is a premier service and marketing group for                                                                                                 purpose you came to this world           If we take our past experi-
   Real Estate Professionals. We do everything from Virtual                                                                                                 all leads to the attributes of        ences in a positive way, then it
   Assistance to Aggressive Underground marketing.                                                                                                          becoming an entrepreneur and          will definitely lead to a positive
   • Virtual Assistant • Online Marketing • Image & Brand Protection                                                                                        these attributes are not the ones     future. Whereas, on the other
   • Social Media Management • Promotions & Public Relations                                                                                                which are only present in peo-        hand, if we make our past expe-
                                                                                                                                                            ple who are highly intelligent        riences have an impact on our
   PH > 213. 537.9194                                                                                                                                       or intellectual.                      present and future life, then you
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                                                                                                                                                               These qualities are inborn         cannot achieve your dreams.
                                                                                                                                                            in every human being all you          Entrepreneurship is the same
                                                                                                                                                            need is to polish them in an ap-      thing as how you deal with dif-
                                                                                                                                                            propriate manner.                     ficult issues positively.                                                                                                                                      It should be kept in mind that
                                                                                                                                                            only those people succeed who         Receive Dave Lindahl’s free
  Looking for A Deal? Need it SOLD?                                                                                                                         have belief in their dreams and       report, call: 800-559-8590 or
  It is the mission of my team to consistently provide the                                                                                                  this belief is so strong that no
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  1-866-296-1671                                                                                                                                                              Call me to buy DIRECT at the auction in Phoenix.
                                                                                                                                                                               Sheresa Pompay ~ US Preferred Realty | |
                                                                                                                                                                                    602.617.7171 ~

     SAM GREEN Photography                                                                                                                                           Los Angeles Real Estate Investors Club
         Personal Photographic Artist
                                Tips for Long-Distance
                                                      Print • Online • Network

                       | Vol. 3 • No. 2 • 2010

                                               Look Inside

                                                                                             A Resource Guide for Investors

                                                                                 Turn-Key Rentals
                                                                                 Around the Nation
                                                                                 Cash Flow from the
                                                                                 Comfort of Home
                                                                                 Mathew Owens, CPA, owner of
                                                                                 OCG PROPERTIES
                                                                                 Buys & Rehabs
                                                                                 Rentals in Tennessee
                                                                                 from Redondo Beach
                                                                                 Get the Deals DONE
                                                                                 Learn Creative Real
                                                                                 Estate Techniques
                                                                                 from Dave Lindahl, Dolf de Roos,
                                                                                 Bruce Norris, Bill Gatten & more!

                                                                                 Celebrating the Largest
                                                                                 Issue with More Pages &
                                                                                                                                                                     LAREIC                 Since May 2003, we’ve helped
                                                                                                                                                                                            thousands of investors learn,
                                                                                                                                                                                            network and prosper. LAREIC,
                                             Reports!                            Opportunities than Ever!

                                                                                                     photo by Sam Green

                                                                                                                                                                                            also known as Sam’s RE Club,
                      “Take Care, Keep Smiling”                                                                                                                                             is dedicated to providing you
                                                                                                                              Hi, I’m Sam Sadat, founder and                                with the most up-to-date infor-
                                                                                                                              president of LAREIC. I would like to
                                                                                                                              invite you to our monthly meetings     mation on market conditions and how you can take
                                                                                                                              on the 4th Wednesday of each           advantage of this historic opportunity. Join us to hear
                                                                                                                              month at the Beverly Hills Country
                                                                                                                              Club. There’s never been a better
                                                                                                                                                                     our great national speakers and our “Power Panels.”
                                                                                                                              time to buy real estate than the       There’s nothing like it anywhere in Los Angeles!
                                                                                                                              present. I have removed all ob-
     * Headshots * Portraits * Personal Photo Shoots
    * Boudoir Photo Shoots * Private Parties * Special
                                                                                                                              stacles from your path to financial
                                                                                                                              independence. You show me your
                                                                                                                                                                      Los Angeles Real Estate Investors Club
     Occasions * Red Carpet Events * Children * Pets                                                                          commitment and I will show you          1112 Montana Ave., #390, Santa Monica, CA 90403
                                                                                                                              how you can make money now
                                        (310) 947-6261
                                                                                                                              even if you don’t have any. To learn    1-800-998-9930 |
                                                                                                                              about our upcoming speakers, visit
                                                                                                                                         EDUCATION • CONNECTION • ACTION                                                                                                                               PAGE 46 • 2011                                                
call us to Realize your dreams & goals!
Cash Flow with Vacation Rentals
                                         By Hector Padilla, Entrepreneur, Broker & Investor

                                                                                              night. We have even had guests pay up to
            ould you like                                action and used it to pay for some   $4,000 per night for special events. I have
            to know, how      It’s T                          of the remodel. Once the        had the opportunity to meet some amazing
            I bought a
multi-million dollar         to Th ime                       rehab was done the property
                                                            looked gorgeous and appraised

                             Outsi ink
                                                                                                 This year we have been booked with
property with NONE                                         for $4,000,0000.                   back to back clients. At times we have

                            the B de
of my own money                                              At that point I put the prop-    clients check out at 12:00 and new clients
and how at the                                            erty on the market for a few        checking in at 3pm. Since this has been
closing of escrow I
received a check for
                                   ox!                   months but when I could not get
                                                        my price I decided to keep it and
                                                                                              such a great experience I now own a
                                                                                              $1,200,000 Ocean Front Luxury Condo in
$140,000 BIG ONES?                                     move into it. I was living like a      Cabo San Lucas, Mexico and a 3 bedroom
   Back in late 2005 a sharp young real               Rock Star in the World Famous Hol-      home with pool in Palm Desert and my
estate entrepreneur by the name of Andy        lywood Hills. What a glamorous life!!!         Hollywood Hills Baby = www.Presiden-
Story brought me a property located in the        Then the reces-                                    
Hollywood Hills.                               sion hit and my                                                    These 3 vacation prop-
   A few weeks prior, Andy sent the list-      real estate business                                            erties offer some great
ing agent an LOI (Letter of Intent) and the    was affected. But                                               benefits:
listing agent literally laughed and rejected   I simply could not                                              1. Cash Flow
what she described as “a ridiculously low      part from my sexy                                               2. Tax write offs
offer.”                                        home. I recalled the                                            3. Networking Opportuni-
   A valuable lesson I have learned is that    old saying, “... it’s                                           ties
time and circumstances always motivate         not what happens                                                4. I trade my properties
sellers. Long story short the unmotivated      to you, but what                                                with other vacation home
                                               you do with what                                                owners at NO COST. I
                                               happens and how you react to it...”.           can trade time in one of my properties
                                                  I have always told my students “Cre-        with someone who owns a property in
                                               ate More Opportunity Than You Find”.           Hawaii or Europe, etc.
                                               So instead of selling my Sexy Rock Star        5. Build equity via real estate appreciation
                                               home I decided to convert it to a “Hotel       6. Meet affluent people
                                               Alternative for The Affluent” and make         7. Own a business that requires very little
                                               it a “Money Making Machine. I decided          time and management.
                                               to offer affluent people my property as an     8. Build a business that I can sell in the
                                               alternative to staying in a boring hotel.      future.
                                                  One night I simply sat down and wrote a     9. Have FUN
                                               mini business plan.                               Remember there are 3 necessities in life.
                                               1. Hire a professional photographer            #1. Food. #2. Water. #3. Shelter (i.e. real
seller unexpectedly lost her husband in an     2. Hire sexy models to portray the Glam-       estate). People will always need a place to
accident and immediately became highly         orous Hollywood Hills life.                    live, play and work (AKA real estate).
motivated.                                     3. Build an elegant website                       This is why real estate has always been
   Remember this, “People will never give      4. Create value by offering VIP Services       the #1 Investment. But you do need to
away their equity or money BUT they            5. Hire a professional to Market the           know how to buy right and invest wisely.
will trade it for peace of mind”. Lo and       Property
behold the listing agent called Andy and       6. Complete all tasks within 21 days           Hector Padilla is the President of HP
said her client would accept his offer.        7. Take bookings and EARN some Honey           Capital Investments, Inc. (a real estate
   Andy then assigned his contract to me       Money                                          acquisition firm) and the Principal Broker
and I paid him $40,000 at the closing as          At I          of SWI Realty (a boutique real estate
his “finder’s fee”. You see why I called       offer my VIP Clients everything from a         company). Because of his limited time Mr.
Andy a sharp entrepreneur?                     chauffeured Rolls Royce, Armed Body            Padilla only consults via “1-on-1 Coach-
   I opened escrow and agreed to pay           Guards, Candle Light Dinner, Executive         ing Phone Sessions”. To be placed on his
$2,000,000. I raised $500,000 in cash          Services, Daily Housekeeping, Breakfast        waiting list, please call his office at (310)
from a private investor and took out a 1st     in Bed and anything else our clients desire.   204-8971 or email Hector@Hpcinvest-
Mortgage. I kept $140,000 from the trans-      Our client’s pay $1,749 to $2,499 per
                                        Look fo al
                                       More R rips
                                       Estate 11
                                          in 2 0
                                                                                                                                                                                    Join Us for Property Tours in 2 Cities
                                                                                                                                                                                       Houston, TX & Phoenix, AZ

                                                            Meet Our Affiliates, Property Managers & On-the-Ground Team!
                                                                 Both Long-Term Hold & Long-Distance Flip Opportunities.
                                                                 ����������������������������������                                ������������������������������������������
                                                                                                                                                                                                     A Full Day of Education * Small Group
                                                                                                                                                                                                     Reserve Now - Small Tour Fee May Apply*
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                                                                                                                                                                                                     *This entire trip may be tax deductible,
        ������������������������������                           ��������������������������������������������                      �������������������������������������������
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                                                                                                                                                                                                     please check with your CPA
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                                                                                                                                                                                                    Houston Tour

                                                                                                                                                                                                                                                                          Phoenix Expo &

                                                                                                                                                                                                    Date is March 12
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                                                                                                                                                                                                                                        Expo Hosts & Tour Guides           March 19 & 20
                                                                                                                                                                                                                                        Include Linda Pliagas & Friends

                                  Call Now for Info: 310.499.9545 or

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