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www.realty411guide.com | Vol. 5 No. 1 2014

The Future of Real Estate

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FOUNDER/CEO Linda Pliagas DRE #01355569 PRESIDENT Nikolaos K. Pliagas EDITORIAL STAFF Hannah Ash Robb Magley Tim Houghten Stephanie Mojica COPY EDITOR Lori Peebles PHOTOGRAPHER John DeCindis COLUMNISTS Tom Wilson Kathy Fettke Lori Greymont Randy Hughes Jason Hartman

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Realty411 / reWealth magazine is published quarterly from Santa Barbara County, Calif. Copyright 2014. All Rights Reserved. Reproduction without permission is strictly prohibited. The opinions expressed by writers/columnists are not endorsed by the publishers. IMPORTANT DISCLOSURE: Publishers and staff are not responsible for performing due diligence on the opportunities offered by this magazines advertisers and sponsors. Before investing in real estate seek the advisement of a trusted financial advisor, attorney or tax consultant. Beware: Real estate investing can be risky and may result in loss of capital.

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hank you for spending some time with us, I hope you enjoy our new issue. We are excited to show off our largest print edition to date. When we started the publication in 2007, it was a modest 16 pages and printed on newsprint, now we own multiple publications, numerous real estate websites, and we are producing expos around the country. Weve really grown tremendously, and Id like to thank our loyal readers and our advertisers for their support. Now its our time to give back, which is why we are devoting the entire 2014 to traveling across the country to host complimentary expos and mixers to connect with as many investors and industry professionals as possible. From New York City to San Francisco and Indianapolis to McAllen, Texas, we want to learn the nuances about a variety of markets so we can better educate our readers. Over the years, investors from around the nation have relied on our magazine to make informed decisions on where to invest, what type of properties to focus on, or whom to train with to further their real estate education. I take my position as publisher very seriously, and Im proud that I have been in the industry over 11 years as a licensed real estate agent in California. Besides assisting many with their real estate transactions by referring them to brokers around the country, I have also personally purchased, managed and sold millions of dollars worth of real estate in five states. Real estate is such an

I truly enjoy the art of Real Estate.

by Linda Pliagas publisher, agent, investor exciting industry and, to me, finding solid rental properties is exhilarating. I truly enjoy the art of real estate. In fact, my husband and I recently closed escrow last month on two phenomenal rental properties in Santa Barbara County. Both were purchased for half of what the market was just a few years ago and appreciation, in this particular area, is already starting to set in! Folks, if we can locate two value-priced properties in one of the most expensive areas of California, I know you can find some solid deals in your market too. I have full confidence in your ability. If being a landlord is not your style, then perhaps youre better suited to be a private money lender, or a note buyer, perhaps you should purchase some tax liens, maybe even a hotel? The beauty of real estate is that the opportunities for investing are diverse, a lot of avenues for prosperity exist. Its up to each of us to learn which type of real estate niche can best suit our personality, needs and goals. I wish you the best in your endeavors, and until next time,

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PAGE 11 2014

11 Publishers Note 18 Safety in Numbers

contents

13 Memphis Invest Expands 21 Analyze Marck de Lautours Deal 22 Finance Goes Back to Basics 24 Due Diligence with Kathy Fetke 27 Learn About ListedBy.com 30 Perfect Credit with Dr. Grayson 34 Mobile Home Park Investing with Mike Conlon 38 Tips from Sensei Gilliland 40 Flipping Houses with Duncan & Anthony Patrick 42 Jason Hartman Talks Real Estate

BIRMINGHAM, AL

44 A Bus Tour with Lori Greymont CEO of Summit Assets Group 45 Manifest Real Estate Miracles 46 Non-Recourse is Back! 47 Zero in on Vacant Homes 48 Private Money 411 51 FirstKey Lending Unleashes Big Capital for Smaller Investors 52 Discover MOR Financial 54 Five Steps to Raising Capital 55 No Fluff with Leonard Rosen 56 Financial Market Intelligence 60 A Successful Private Lending Practice 65 The Launch of LA South REIA 66 Multifamily vs. Single Family 68 Retire Wealthy with an IRA 69 Turn-Key and Renter Ready 71 Land Trusts vs. LLCs 73 Crowdfuding Investing 75 Flip or Flop with Tarek & Christina El Moussa 78 Williams & Williams Update 80 10 Rules for RE Success 81 Taking Title Properly 82 Larry Goins Discusses Deals 83 Discover B2R Finance 84 Lets Analyze a Hotel 88 Learn Probate Investing 90 Legal Aide for Investors 93 News from Lady Landlords 94 Relationship-Building Tips

Realty411Guide.com

PAGE 10 2014

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Texas Expansion with MemphisInvest.com

S
uccessful investors realize how important diversification is to risk management in their portfolios. MemphisInvest.com, the largest turnkey investment company in Tennessee is responding to the needs of their nearly 900 clients by expanding their operation to what they believe is another top market: Dallas. Although its over 400 miles away from their Cordova-based company, the Clothier family, principals of MemphisInvest, are quite at home in the Texas market as they had lived in Dallas for many years as proprietors of a grocery business. So comfortable in fact that they quickly expanded into the market by purchasing 400 homes, which were rehabbed and sold as turnkey investments to their loyal clients, many of them already own multiple properties in Memphis. All the properties were sold without any direct advertising or marketing. Now that a secondary office has been set up to handle their growing list of properties under management, they are well on target to expand to nearly 800 doors. Recently, we had the pleasure of interviewing Chris Clothier, co-owner of MemphisInvest.com to discuss their explosive expansion into the Texas market. Q: Im sure your team and clients had wonderful reaction to the expansion, but were there any concerns about adding a second city? A: The biggest concern was consistency. We had developed a very stable and reliable model in Memphis with a fantastic team and that is very difficult to duplicate. We were very methodical about who we hired and how we trained them. Our culture of customer service first and being transparent in our communication, both good and bad, was very important to us. So our biggest concern was how do we keep the high quality of work, communication, service and the reliable model while moving into another city. Q: When did Memphis Invest decide to expand to Dallas and how long did it take from the initial idea to actually selling properties and overseeing rentals in that market? A: We decided in the 4th quarter of 2011 that we were going to open an office in Dallas. We were actually buying our first properties there in February of 2012, but we were not advertising the new city at that time. We were having private conversations with individual investors about the opportunities there and taking orders for properties. At first, we outsourced the property management, but learned very quickly that no one was going to show the same attention to detail and care like we were, so we opened our property management division in October of 2012. We held our first sneek peek event in the Fall of 2012 and hosted 140 investors to the city. Today we are managing just under 250 properties in the DFW metroplex and average completing between 17 and 20 deals a month over the last couple of months. Our goal for 2014 is to complete
PAGE 13 2014

between 250 and 300 transactions in the Dallas market. Q: How did you put your team together in a far away city and what tips do you have for other companies and investors trying to manage a long-distance portfolio or staff?

Question: Why did Memphis Invest choose Dallas as their next rental market? Answer: There were a couple of reasons, but mostly our familiarity with the market. We still have family and business ties to the Dallas/Ft. Worth area and luckily the market was a fantastic investing opportunity. We had been looking for which market to expand into and Dallas kept presenting the best opportunity for our success and more importantly, our clients success.
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A: Without the ability to have a Clothier or a high-level team member in the city each day, I am not sure we would have undertaken a remote location. Our reputation, our commitment to excellence and our integrity are too important to us. So , without the easy commute to Dallas, I am not sure we would have chosen the city. We could leave early morning and be in our offices by noon. There are also daily flight back and forth for the hour long flight. So we chose a city with three attributes for us: a. we were very familiar with the layout of the city. b. we had great connections in the city and were able to locate high quality personnel quickly. c. it was close enough for a Clothier or one of our top leaders to be in the city almost daily.

>

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Without these benefits, I think it would have been much more difficult. We kept great notes, had meetings on the progress and issues with the second city constantly and have essentially developed a roadmap for going into additional cities. Question: How many clients now own in Dallas? How many homes are currently under your management? A: We have just under 250 properties under management in Dallas and there are right at 80 clients who own properties in the metroplex.

and would be lucky to get 1-year leases in Dallas. We scoffed at that belief and brought the exact same property management and renovation style to Dallas from Memphis. We believed that a home that has been renovated to a higher standard and a management company with great communication and service could easily command a 2-year lease. Today, we rent 80% of our properties in the DFW market on 2-year leases. Q: Are you still hosting property bus tours in both cities? Where can we find out more information about them? A: We do not do bus tours of the cities any more. We have investors visiting our offices weekly to see properties and the operation. The events that we host now, one in each city each year, are geared toward showcasing our team and our operation as we all the attributes of the cities

neur in Memphis for 25 plus years. My older brother Kent Clothier, Jr. more than double the size of a private company in Florida at the age of 28 growing sales for that company to over $2 billion a year. Kent may not be a part of the day-to-day business operations for our companies, but he is a great example of our family being driven to excel. Our families success is due to the fact that we have failed and been able to grow and learn from those failures. What you see today is a company where the culture is so important. We have 44 employees and they are all strive to excel and be the best. That is very similar to the culture we have developed in every company we have built. Q: Can you give us a sneak peak to what the future holds for the Clothier team and family? A: We are already in a third city, Houston,

Question: Are you inclined to stay within certain areas of the city? How were those areas chosen? A: Just like in Memphis, we are trying to Just like in Memphis, we are trying to buy in areas that we are buy in areas that we are very familiar with. We have an understanding of the dynamics very familiar with. We have an understanding in the area and the economic factors that make it a good rentof the dynamics in the area and the economic al part of town. Our biggest concerns are always going to be factors that make it a good rental part of access to jobs, access to transportation and schools. town. Our biggest concerns are always going to be access to jobs, access to themselves. We try to include charities TX., exploring and looking for office lotransportation and schools. So right and big companies in the cities as well as cation as well as properties. There is a lot now we are buying in spot areas of town inviting political leaders to address the of good opportunity coming for our existand are only managing in maybe 10% groups. Our events now are much less ing and future clients and three cities will of the entire metroplex. There is plenty about selling properties and more about certainly help us to fill all of the demand. of room to grow and expand into other helping investors get a good feel for the It has been a process of development over areas of the city, but right now we are market and the company and then make a the last 10 years and these next few years concentrating on doing it right, not so decision if the market and the partner are certainly look to be very promising for our much doing it quickly. the right fit for them. Of course, there is company and for our clients. With three always time on our weekends for investors cities we believe we will be able to fill the Q: How does the Dallas rental market to get out and see properties and we endemand from smart real estate investors as compare with Memphis, as far as ROI, courage it, but we wanted to take the focus they look to develop portfolios of consisvacancies, taxes, etc.? off of the bus tour or buying tour tent and stable returns on solid assets. A: The two markets are remarkably mentality and put it back on the long-term similar as far as returns are concerned, relationship aspect of investing in buy & Q: Is there anything you would like to but Dallas certainly presents more hold real estate. add about the Dallas market and your challenges with insurance and tax rates. involvement in that city? They are a little more fluid than they Q: Your company has accomplished so A: We are really excited about the Dallas/ are in Memphis and are more prone to much in such a small amount of time, Ft. Worth market and even about the change. So we keep a very close eye on what do you attribute your success to? possibilities in the near future for Housthose two costs, which are major factors A: This is not new to my family. My ton. This is going to be a fun year and in an investors ROI. As far as vacanfather has been an entrepreneur for over we are focused on positive growth and cies are concerned, we were told early 30 years and he followed in the footsteps building some great friendships with our on that we would have high turnover of my grandfather who was an entreprenew clients.
Realty411Guide.com PAGE 14 2014 reWEALTHmag.com

Safety in
By Robb Magley Every day, all across the country, real estate taxes go unpaid.
Its no secret that real estate taxes generally represent the majority of a countys revenue; and they need that revenue to provide services like firefighters, police officers, roads and bridges. In more than half of the U.S., counties are required by law to collect unpaid taxes through the sale of tax liens to investors counties sell a certificate that grants the right to collect those taxes, plus interest and penalties, to investors for the amount of the outstanding tax alone. This allows the county to balance their budget and operate without a revenue deficit its great for the county, and investors like the opportunity, too. But while the sale of real estate tax liens to investors is a process that dates back to the early 1900s, its not the unexplored territory it used to be, according to Chris Gleason, Managing Director at MMG Capital. The tax lien industry isnt a secret any more, said Gleason. Anyone can register, walk into an auction, and bid. There are thousands and thousands of tax lien investors across the country, and that makes the market competitive. Its become so popular because its

NUMBErS
an exceptionally low-risk investment in general, according to Gleason, who noted the overwhelming majority of tax liens investments eventually get paid back to the investor plus interest and fees. Thats because no ones interested in losing their house over a tax lien that represents 1-3% of the propertys value, said Gleason. Over 95% of property owners redeem their unpaid taxes within their states statutory period. For the ones that dont, the certificate holder has the opportunity to do whats called filing for deed the equivalent of foreclosing for a tax lien. Filing for deed starts the process, and the property owner is forced to redeem (e.g., pay up), or the property will go up for sale. At that point, if youve done your due diligence and you have a piece of property that has value, someones going to come along at that foreclosure sale and pay for the property, said Gleason. And that essentially gets you redeemed, too. Over 99% of the time you get your money back, plus interest and fees. And thats the goal. Gleason points out the biggest misunderstanding about the tax lien industry is that people think everyones in it to acquire real property. No one
PAGE 18 2014

Discover how Chris Gleason and MMG Capital lower the risk on whats already one of the most secure investments in the industry.
should be going into it because they want to buy property for $500, said Gleason. Realistically, youre not going to acquire property this way unless youre buying tax liens on worthless property nobody wants. Then you might end up with it and youre going to be mad that you did. While the concept of investing in tax liens is very attractive, and in many ways very simple, the reality of doing it in a competitive market is complicated once youre on the ground, according to Gleason; between the ins-and-outs of varying state laws, timing, and bid structures, to say nothing of traveling to auctions and servicing the liens once you buy them, the real rate of return for a small investor shrinks quickly. Gleason and MMG Capital structure the purchase of tax liens as a pooled fund opportunity at once spreading out an investors risk and increasing yield. The rates that you can achieve by yourself, with not a lot of money, are not very high, said Gleason. First of all, youre competing with people like us; we come into these auctions with millions of dollars. Second, if theres a larger parcel out there, say an apartment building, thats
Continued on pg. 86
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Safety.Security.Double-DigitReturns.

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SBD HOUsING Expands to FLORIdA F

or the past 10 years, Marck de Lautour, owner of SBD Housing Solutions has been focusing on the metro Kansas City area for investment properties. His Rolodex of investors includes clients in Australia, New Zealand, Canada and California. Now with the success of hundreds of deals in the Mid West, SBD Housing Solutions is now expanding operations to Florida, specifically Tampa. Recently we interviewed de Lautour to get an inside glimpse of how this savvy investor is able to scoop up quality deals with built-in equity before anyone else does. By Lori Peebles of time so it certainly helped in getting the property turned quickly & efficiently. The SBD Housing Solutions Team pany (SBD) started researching in Tampa bay area back in Jan 2012 and didnt get our first buy until June 2013! Not fast, but we had to learn the market and we went through 3-4 different cities before settling in on the Bradenton / Sarasota area. Rehab/Maintenance Q: Was the property rehabbed or was it a light cosmetic fixer? A: It was a cosmetic fixer upper, but there was an upstairs loft that converted easily with one wall built, into a 4th bedroom. Probably increasing the value by $10K-$15k with that addition alone. The rest was dolling up the bathrooms and kitchen with granite and travertine, and the whole house with some phenomenal dark hardwoods floors! Q: How does this rehab compare versus the properties in the past? A: Of all the homes we have completed in Florida this was the easiest. Extensive cosmetic makeover would describe it best.. approx $25,000 of capital invested in the remodel. MANAGEMENt Q: How long was the property held? What tips do you have for managing an asset? A: Just 68 days prior to contract acceptance, then 25 days to close. Work with people you trust simple as that. Have fun laugh and learn from mistakes, and
Continued on pg. 86

Acquisition Phase Research Phase Question: How did you land your latest re- Q: What were the terms of the sale? A: Cash, closing fast. Got them down from hab deal? A: It was an MLS opportunity, the owner list price of $295, down to $264k. Then got it SOLD for $369,900 in under 70 days. occupant needed to sell. But it was undervalued at that price even. Q: What are some tips you have to research Q: How did this deal compare to other deals youve done? a property or area? A: You have to have someone local on A: We typically buy on the courthouse steps the ground that is firmly entrenched in the so having to wait 30 days to close on the market, able to jump on deals when they purchase was a bit different! But we could come up. We were very patient. Our com- get our contractors inside the home ahead

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PAGE 21 2014

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Mortgage Industry Goes Back To Basics

strategy

But With A Few New Tricks

By Robb Magley

I tell people, as far as qualifying, were back to lending as it was 20 years ago, said Bighaus, Senior Loan Officer for SecurityNational Mortgage Company. I mean obviously we have a few tools we didnt have back then -credit reports are instantaneous, weve got the automated underwriting system, and so on. But as far as documentation type, were back to that full-doc loan. After Julys bump in interest rates, things are settling back into a more comfortable area that Bighaus says a lot of his investors still find attractive. I still see a lot of people who want to get into investment properties obtaining financing, because its a great time right now to do it, said Bighaus. Terms are still great, you know -- 30year money, getting high 4s and low 5s, thats still pretty cheap money when youre looking at investment properties. As more people enter the market, Bighaus said hes seeing investors follow the lenders lead as far as trending toward more traditional investment models -20-25% down payments, for example, and buy-and-hold investments outnumbering fix-and-flip plans. Ive only seen a handful of people in the last couple of years who have bought their properties and turned around and sold them right away, said Bighaus. Everything I see with my clients right now is portfolio building, because theyre all thinking about retirement. One of the results of that is the increased popularity among investors of 15-year mortgages, especially for loan amounts associated with smaller properties; Bighaus said savvy borrowers are looking at the small difference in payments and seeing big advantages to
Realty411Guide.com

teve Bighaus has been in the mortgage industry long enough to see a lot that looks familiar about todays market.

shorter terms. Where I really see it is in those loan amounts below $50,000, said Bighaus. When you look at the difference between 30-year and 15-year terms on a loan of that size, for $50 or $100 difference in the payment every month, youve got a better rate, youve got more money being applied to principal every month, and youve cut your term in half. Theyre thinking long term; if they can get it paid off in 15 years, then theyre that much farther ahead of the game. And the game is growing; Bighaus company continues to expand its footprint, operating today in a dozen states with more being added by the end of this year and still more planned for 2014. That can mean a lot of traveling, but Bighaus sees it as part of what differentiates his service from the competition. Wherever investors are buying property, thats where were focusing our business, he said. I like to visit the markets that I loan in, because I like to actually see the inventory and meet the people. Bighaus is seeing a lot of his customers come back with
Continued on pg. 85
reWEALTHmag.com

PAGE 22 2014

Image: maxxyustas / 123RF.com

Its about time we show you

Close your loan in as little as 30 days!

Steve Bighaus has over 24 years experience in the mortgage industry. He maintains a
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This is not a commitment to make a loan. Loans are subject to borrower qualications, including income, property evaluation, sufcient equity in the home to meet Loan-to-Value requirements, and nal credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicants eligibility and market conditions. Renancing an existing loan may result in total nance charges being higher over the life of a loan. Reduction in payments may reect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant. Security National Mortgage Co. is an Equal Opportunity Lender.

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due diligence

Kathy Fettke gives insight on a recent fraud investigation

- They wanted to offer the best deal in town Testimonials on their website raved about what a great deal it was. No worrying about property management! No vacancies! No repairs! Who wouldnt want that? In reality, that type of situation can exist, but usually only in a triple net lease situation where the tenant agrees to pay all expenses and repairs. It cannot work in a situation where the seller takes on such enormous responsibility for thousands of clients Heres what our member thinks happened next: Half-way In: - Operating costs ended up being higher than expected - They started to get behind on making owner distributions

How to Vet Out Turn-Key

(and Avoid Getting Scammed)

PRopERtY PRovIDERS

eal estate, like any investment, can attract lots of scammers. How do you really know who youre dealing with? You see ads everywhere for turnkey rental properties, but what does this really mean, and how do you know who to trust? The owners of the Bay Area Equity Group, a turn-key property provider located in Campbell, California, were recently arrested on suspicion of fraud. I saw these guys at a real estate expo I attended last year and they seemed like nice enough people. What happened? Real Wealth Network has over 14,000 members now, so its pretty easy for us to get information. It turns out that one of our members purchased property through the Bay Area Equity Group. I asked him about it and heres what he told me he thinks happened: In the Beginning... - They started out with good intentions - They made guarantees of 15% returns on rental properties in Detroit, MI - They offered to cover repair costs in many cases

- They realized they couldnt meet the guarantees - They didnt want to let their investors down How Ponzi Schemes Begin... Often times operators need to rely on new money to feed the old promises. In this case, our member suspects this is what happened: - Allegedly the owners started to buy distressed property, perform a minimal rehab, and then resell far above market prices - Proceeds from the sales allegedly went to pay for the former guarantees - It still wasnt enough - Desperation kicked in. Allegedly they started to sell the same property twice to different people, but only record one sale.
Continued on pg. 37

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Join us on

www.ListedBy.com Today!

LISTEDBy

Real Buyers Real Sellers Real Estate

The FUTURE of The Real Estate Industry

FREE EXPOSURE FOR YOURSELF AND YOUR LISTINGS

Global Online Real Estate Marketplace Live Bidding Auctions Listing Style Property Offerings Fully Functional Social Network Designed to Get Exposure for Real Estate Professionals FREE to post listings FREE to bid on assets FREE to become a listed service provider and market yourself to potential clients! We make our money off of advertising so our users pay nothing ever!

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The real estate market continues its aggressive ascend back from the ashes of 2008 and is showing no signs or desire to slow down any time soon. With interest rates at all time lows, the landscape for investors seems just right even for the less aggressive types. ListedBy founder and chief executive officer, and real estate investment veteran Stephan Piscano has been one of the most successful and daring investors to take advantage of the recent market drop. While he spends time building online auction site ListedBy.com, his investor acumen continues to spot opportunities along the way. If you heard or read Stephans predictions for the real estate market a year ago, and you followed his advice, you would know he was spot on. Today were happy to join Stephan to get insight into some of his investing strategies and plans for the future, and how real estate investors and real estate professionals can benefit from using ListedBy.com.
middle man and allowing the buyer to be in direct contact with either the property owner, or the actual list agent. Many websites try to either limit the communication between the parties so they dont get cut out, or they route traffic to their own buyers agents so the buyer ends up dealing with an agent that knows nothing about them, and nothing about the property itself. That can be beneficial to first time buyers who need their hand held a bit more, but to an investor it simply slows everything down and wastes time. ListedBy.com dramatically speeds up the process for the buyer and creates targeted exceptional exposure for the owner/agent. Q: Well that sounds great but Im assuming that Brokers and Agents are not too happy about being cut out of the loop. A: Oh No Im happy you asked about that because that is actually one of the biggest misconceptions that people have about the site when they hear about the model. While it is true that of course an owner could use our site directly with a buyer, the reality of it is that the majority of transactions happening on our site take place with agents, and we have actually found that believe it or not the agent benefits from our site more than anyone else. By removing the middle man and routing the DIRECT buyer traffic straight to the list agent, it gives the listing agent the opportunity to double-end the transaction and effectively put twice as much revenue in their pocket. In addition to that we have actually heard from several agents that by building out their social network profile on the site with photos, bio, and client recommendations, they have actually gotten new
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Q: Stephan, you created the website ListedBy.com to meet the needs that you personally had experienced and observed in the online sector as a real estate investor. Can you give us a brief rundown of what ListedBy.com is and how it helps investors meet their needs? A: Thanks Roger, I am excited and thankful to discuss this here on Realty411. As many who follow ListedBy know, I created the site after liquidating several real estate assets online through sites such as eBay and others. At the time it became clear to me after searching literally for years that there was no website out there that allowed me to have the marketplace functionality I needed to properly market my listings, and do it in a setting that promoted trust and openness. With that in mind we went live with ListedBy.com to harness the marketplace functionality of a site such as eBay, but tailor it to real estate, and we added the key piece of the social network which we modeled after LinkedIn to give the buyers the ability to not only research the property that they were buying, but also research the person they are buying it from. This creates more direct communication between the parties and since we never play middleman as our competition does, we create a setting where transactions are much more likely to take place. This functionality allows an investor to not only research real estate online, but actually make a BUYING ACTION through the site and be in DIRECT contact with a person that can actually accept that action all online and all at no cost. Q. That seems comprehensive. So it sounds like the key aspect of the site is transparency? A: Yes you could say that. It is really all about cutting out the
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business and new clients from being on the site! A lot of times a user might come to the site looking to buy, but they dont see a property that particular day they like, but if perhaps they see an agent profile that catches their eye and excitement now that agent has a new and hot lead directly to their site! Given that we designed the social network to drive traffic back to the agents own site, it becomes an exceptional benefit in itself. Q: So in essence, in addition to buying and selling, an agent can use the social networking part of the site to grow their brand? A: Yes, we built out the functionality with everything that a real estate professional needs to connect with investors and partners from around the world, and it is ALWAYS FREE. Agents can see stats on who came to their profile page and who viewed their listings. It is some unreal technology that can put REAL CASH in their pocket. Q: Do users on ListedBy have other listing options or just auction? A: Good question, the site is set up to allow users to list as a live bidding reserve, or no reserve auctions. However, most of our listings are actually what we call an Own-It-Now Best Offer Listing. This is where the listing is set at a fixed Own-It-Now price but users can actually submit offers through the site which can be countered, accepted or rejected all through the site. It is actually that rapidly paced direct offer submission functionality that really seems to excite our users the most. Q: So are there any other features besides the marketplace and the social network?
Realty411Guide.com

A: Yes actually we added MLS syndication in October 2012 so currently you can search about 600,000 MLS listings in a separate section of the site. We also recently partnered with Foreclosure.com to feed nearly two million foreclosure listings to the site. This combination gives our users the opportunity to search auction listings, MLS listings, and foreclosure listings all in one spot. If that was not enough, we also have a service providers directory where users can search property managers, contractors, escrow compa-

By removing the middle man and routing the DIRECT buyer traffic straight to the list agent, it gives the listing agent the opportunity to double-end the transaction and effectively put twice as much revenue in their pocket.

buy, no commission, no percentage, no membership fee - NOTHING. ListedBy really is free. Our main revenue model currently is from corporate advertisers, and we have been fortunate to have 3 separate fortune 500 companies enter long term advertising partnerships with us since we went live. When we designed the site model I looked at all the most successful sites such as Facebook, Google and others and we realized that these sites really dont charge their userbase anything. We want to give our users something that they want and need, and give them a reason to come to the site everyday which creates targeted traffic that is extremely valuable for our advertisers putting their brand in front of consumers that they KNOW need the service, at the moment that they need it the most. Q: So what type of advertising opportunities are available on ListedBy.com? A: We have several ways that we can drive traffic to our advertising partners. From our massive reach on social media with our LinkedIn groups, to our more than 200,000 opt-in users. We find that all of our top advertisers extend their campaigns and dramatically lower their cost per lead working with us. I always say that when we went live with the site and tried to figure out how to drive traffic ourselves, I made all the mistakes already with my own money so you dont have to. We know as a group that we have developed what we believe to be the most effective and powerful marketing platform in the real estate sector, and we are thankful that excelling in this way allows us to help drive profits for our advertisers, and more importantly keep the website free to our loyal and active users.
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nies and more all on the site. I would get sleepy thinking about it if it wasnt so darn exciting! Basically we are like 5 websites in one, and we are designed to give the investor, the agent and the real estate service provider everything that they need all in one spot! So Im hearing a lot of use of the word FREE. A lot of users may be wondering what is the catch and how ListedBy generates its revenue. Ha! Yes we get that a lot. In fact, recently we have been debating if we should start charging a small fee because people simply dont believe that it REALLY IS FREE. But right now there is no fee to list, no fee to
PAGE 28 2014

Image: Gina Sanders / 123RF.com

Q: You actually were on the cover of Realty 411s alternate cover, Real Estate Wealth, when the site went live back in 2012. How has the site grown since then and what are you looking forward to in the coming year? A: Yes it actually is a bit sentimental to me being in this issue because the very first piece of media/advertising we did when we went live was with Lindas other magazine, Real Estate Wealth. Since then while we have had some ups and downs I am so thankful to say we have grown at one of the fastest paces in the real estate sector, had literally thousands of transactions take place as a result of the site, and I am really thankful to have gotten to meet some of my heros and icons in real estate and tech. Also I am really thankful to great members that have joined the team in the last year and provided such amazing talent and have been such a huge part of our success. In the coming year I am excited about

where we are going because I feel like the first year we built our brand, built our base, and learned what we are and how to execute. I feel that we are now ready to put it all in place. In 2014 we are going live with the 2.0 main version of the site, which is going to have some simply UNREAL features that the world has never seen before. This will help us as we also transition more to focusing on having a major presence in the auction and the real estate sector and focusing on high level transactions and allowing users to truly buy real estate in a better and more effective set up. Q: Any other thoughts youd like to share with a fellow property investor? A: I think that this is an exciting time to be a real estate investor, and perhaps even more so to be an agent. The lack of inventory, combined with low interest rates and the basic sense that this is an exceptional

hot market has created a consistent rise in the market as we had projected. I think the market should continue to rise the next 2-3 years, however I do believe that at some point when interest rates start to go up that we could see another small crash in the market. To me it is simply a race between rapid inflation and the interest rates, to see which of the two catalysts stands to impact the market the hardest. You could see the prices continue to rise not because homes are worth more but because the dollar is worth less. That would mean the more leverage that you buy with, the better you can capitalize by paying off your loan balance with cheap dollars in the long term. Either way, whatever you do you better do it on ListedBy.com, and we hope to see you there soon!

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Give Him Some Credit

ong after everyone else has taken off for the weekend, Dr. Michael C. Grayson enthusiastically discusses the ins and outs of credit from his empty New York office. Dr. Graysons finance and credit service, The 990 Club, was inspired by a rather lofty goal; to help his clients achieve the perfect 990 credit score. 990? He knows it may surprise you to learn that 990 is

One Mans Quest for Perfection.

now the perfect credit score (not 850), and thats what he wants; he wants to get you thinking differently about credit. The ambitious CEO of Grayson Financial Services and The 990 Club believes that a credit score of 990 is a goal well worth setting (and achieving). Dr. Grayson is a man on a mission and his mission is to empower Americans to acquire financial literacy and excellent credit. In this economy, his message of hope is both a rarity and a beacon of light. Do you know what FICO stands for? Dr. Grayson asks. That most people cant answer this question, he says, is indicative of a problem. Dr. Grayson believes that as a country, we need to acquire a richer understanding of how the current credit scoring system works and what we can do to improve or perfect our scores. He is eager to point out that in the year 2000, a new credit regime quietly took over and rewrote the age-old model.too quietly, he implies. In previous years, he begins, As long as you paid your bills on time, you could expect to have good credit...but in 2000, that changed.

A
Realty411Guide.com PAGE 30 2014

mericans, and their credit scores, now fall under the FICO-based system; FICO, or the Fair Isaac Corporation, scores are calculated based upon the length of credit history, amount of money owed, types of credit and newly opened credit while the payment history is a mere 35% of the score. What this means, Dr. Grayson concludes, is that a millionaire many times over who always pays her bills
reWEALTHmag.com

on time may end up with a less than desirable score. He has seen how credit scores can make or break a real estate deal. He recounts a cautionary tale of how he once worked with a real estate developer and millionaire whose funding for a project got held up due to her score. The developer, who always paid her bills on time, had assumed her credit was excellent. Her FICO score, which landed somewhere in the 500s, was a rude awakening. If a multi-millionaire isnt credit-worthy, then who is? According to Dr. Grayson, everyone can be. The 990 Club and GFS were founded as a response to the financing problems Dr. Grayson, while working as a financial advisor, saw investors encounter as a result of lackluster credit. The teams at GFS and The 990 Club function like something of a credit and financing think tank; through offering intellectual capital to those seeking capital and credit, Dr. Graysons company provides an innovative, and popular, service in a downturned economy. Grayson offers unique FICO-compliant strategies that elevate investors, home buyers, corporations, small businesses and nonprofits to the credit level at which they want to be. Dr. Grayson has cracked FICOs algorithms and, he says, he has a formula that gets his clients results. Does his formula work? For Dr. Grayson, the proof is in the pudding. One of his clients was able to achieve the highest credit score in the world, a perfect 990. He is eager to spread the message that long-term financial growth and excellent credit go hand in hand. Simply stated; Dr. Grayson wants to change the world, one credit score at a time. Though many companies offer credit repair services, Dr. Grayson isnt flustered by the competition. The one-size-fitsall approach that most credit repair companies use doesnt really repair anything: The problem with the other leading

companies, he says, is that they only address the negative items on a consumers payment history. As payment history accounts for a just portion of the total score, the switch to the more comprehensive FICO system in 2000 actually made payment-history focused credit repair somewhat obsolete and the result, Grayson says, is that his competitors take far longer to do far less. redit repair companies today must address all aspects of credit scores, Dr. Grayson puts forth, and GFS does just that. Most credit repair companies are equipped with dispute form letters; GFS is armed with the Grayson Formula (the result of Dr. Graysons reverse engineering of FICO algorithms). Rapid Restructuring is Graysons secret ingredient; the Formula, he says with confidence, can give anyone good credit in approximately 30-45 days using his strategic credit restoration and development approach. Anyone? Anyone, Grayson reiterates; further, his formula can take good credit scores and make them great. Great credit scores can become perfect (or close to) and Grayson is proud of his success, The 990 Club has more members whose credit scores are in the 900s range than any other service club.

Realty411Guide.com

Dr. Grayson is a Man on a Mission..

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PAGE 31 2014 reWEALTHmag.com

Image: Alma Gami / 123RF.com; Dr. Grayson photographed by Mike Morgan

Dr. Grayson wants to bring his message of financial literacy and good credit beyond his work with investors and individuals. He believes good credit is the key to obtaining loans, closing contracts, obtaining grants and even getting a job these days; GFS is committed to community outreach and empowering the disenfranchised. Dr. Grayson regularly works with government organizations, politicians, churches and nonprofits to discuss opportunities for financing, credit and financial growth; in 2012, Grayson presented before New York Governor Cuomos forum on small business. Currently, he is undergoing a series of meetings with New York Citys high school principals to develop a pilot program: The 700 Club. Graysons goal for the project is to give every graduating senior the gift of good credit (a 700 score) and the skills to maintain it; a large task, no doubt, but one in which Dr. Grayson believes fully. For individuals looking to improve their credit scores, Dr. Grayson advises they learn what FICO stands for and what, exactly, is scored. Though a perfect credit score may seem impossible for most of us to achieve in the current economic climate, he disagrees. Where we see 500s and 600s, this determined CEO sees 800s and 900s. Is he a magician? No; Dr. Michael Grayson is a scientist who believes in the transformational power of great credit.

Dr. Grayson photographed by Mike Morgan

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Invest in MOBiLE HOmES

INVESTOR & AUTHOR MiKE CONLON TEACHES HOW TO
UNCONVENTIONAL WEALTH:
UNCONVENTIONAL WEALTH:
The New Main $treet Millionaires
In this book, Mike Conlon will show you an unconventional path to prosperity in this very difcult economy by providing quality, ethical, and affordable services to Americas largest and fastest growing consumer group. In order to prosper on this path, you dont need a college degree, only the willingness to work hard and learn.
Mike has the unique ability to provide Americans with a realistic, no B.S. view of the nancial world today one that comes from his years of street-wise investment success in three different businesses nancial planning, mid-sized apartment complexes, and mobile home communities that have made him a true Main $treet Millionaire.

miche

2012. Both parks were REO (bank owned) parks that we bought via a broker. This was y company, an off-market deal Affordable that was not listed The New Main Communities on any public $treet Millionaires Group, LLC (ACG), websites. In my based in Cary, NC, business, knowing specializes in purchasing the brokers and MIKE CONLON distressed mobile home establishing a track communities at distressed record with them sales prices, rehabbing is very important. the properties over 9-15 months and We like the greater Cincinnati Dayton then either obtaining a refinance from market because of its large population a financial institution or flipping the (over 3 million combined) and strong property for significant gain. We have base of employment. The multi-family done 16 full cycle deals (buy, sell, rebusiness, whether apartments or mobile hab) for sales proceeds exceeding $65 home parks, is all about having strong million over the last 9 years. We also employment near the property. Lot rents currently own over 3,000 mobile home are solid in this market as well , ranging spaces amongst 12 parks throughout from $325 - $375. the Southeast and Midwestern U.S. for We purchased the two parks for cash flow purposes. $1,150,00 all cash. One park had 306 We have just recently finished a spaces with 55 resident-occupied homes 12-month rehab project amongst two and 120 empty homes. The other park parks in the northern Cincinnati market had 84 spaces with 34 resident-occupied that we run as one combined park homes and 3 empty homes. Both parks (they are 10 minutes apart. We use had been in steady decline for 5 years. In one manager to cover both parks). We fact, we had to tear down 101 homes at the purchased the deal on October 26th of large property because they were in such
He has bought, rehabbed, and sold over $50 million worth of commercial multi-family (affordable apartment complexes and mobile home parks) involving 15 projects over the last ten years. He was a leader in the nancial planning business in the 1990s and early 2000s as he grew a nancial planning broker-dealer from $1.2 million in gross revenues to $40 million in six years and then sold it to a large national insurance company; he also managed over $100 million of client money in his own nancial planning practice before becoming completely disillusioned with Wall Street money machine. He is a 1990 graduate of the University of Minnesota Law School. Mikes basic investing premise has brought him success over the last decade and he foresees even more opportunities over the next 10 years. Unconventional Wealth gives readers insight into the skillz they need to become Main $treet Millionaires.

bad shape (a goal in any purchase is to save as many homes as possible). The first move me made was to zonedown the properties to create immediate higher occupancy. We zoned the larger park down to 132 spaces by creating one lot from two spaces. We did the same with the smaller park going form 84 spaces to 60. Existing residents loved the larger lots, but our goal was to get it prepared for financing, which means we need a minimum of 65% physical occupancy (actual homes on lots) at both parks. The zoning-down process took us approximately 4 months to accomplish with a total cost less than $20,000. Less density is almost always well received by local municipalities. Many investors ask me why I would zone-down a park instead of simply filling it up with a repo home. Although we added 5 repo homes to each park, this process is time consuming an expensive. A typical repo home will cost you $15,000 - $20,000 to purchase, move, set-up, and rehab. Zoning-down parks is a much cheaper way to get occupancy up immediately. Once we zoned the park down, we executed our rehab playbook to perfection with the following steps: 1. Repaved the roads cost $79,000 2. Trimmed many trees cost $21,000 3. Rehabbed 22 existing homes and sold them to residents net cost $88,500 4. Added 5 repo homes at each park cost $180,500 The additional cost in this project was the tear-down of 101 homes, which cost $111,625. A little bonus at the larger park is that 8 owners of nice RVs are leasing lots form us in the back of the park. Total rehab costs for this deal were right under $500,000. I was fortunate to use a bank line of credit for half of the rehab. Our total cost into the two parks is

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PAGE 34 2014

reWEALTHmag.com

Photo: Jacqueline Moore | Dreamstime.com

The New Main $treet Millionaires

MIKE CONLON

Why Should You Invest In A Mobile Home Community?

3 The demand for affordable housing is skyrocketing 3 Very little, if any, affordable housing has been built in the U.S. since the mid-1990s 3 Much higher cash flows than apartment complexes as they are less maintenance intensive, have much less resident turnover, and much lower ongoing capital expenses 3 Higher barriers to entry as the costs to build a new park are high and available land near larger metro areas is scarce and expensive 3 Much easier to manage when the majority of residents are just leasing the dirt

Why affordable communities group?

Learn how I made over $500,000 in profit in two years by buying one distressed community
3 10+ years experience in buying, rehabbing and selling over 3,000 units 3 Have completed 15 full cycle deals (buy, rehab, sell) resulting in over $50 million proceeds 3 Experts in the property management business as we self-manage all our properties - very hands-on 3 Keep a tight geographic focus - diversified, but not too spread out 3 We put our own capital into every deal

Mike Conlon, President/CEO MIke Conlon, aka Main Street Millionaire, has the unique ability to provide a realistic, no b.s. view of the investment world today as he is highly educated but also has 15 years+ of streetwise investment success that has made him a multi-millionaire. Mike tailors his business strategy around providing outstanding customer service and quality, affordable products to the fastest growing consumer segment in the U.S., to the working poor.

Log on to any websites below to get more information on investing in Mobile Home Communities and to score a free copy of Mikes new book: Unconventional Wealth Creating the New Mainstreet Millionaires

AFFORDABLE COMMUNITIES GROUP

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$1,650,000. We now have 126 residents combined from both parks (up from 89 a year ago when we took over). We will add 6-10 more repos in the Spring to get to 70% occupancy. We just had the parks appraised and the valuation was $3,225,500. We will get all of our original capital and rehab funds back upon a refinance this Spring. More important, the parks have been positive cash flow from day one (I cant stress the fact enough that you never buy a negative cash flow property) and the monthly net cash flow (after all expenses and mortgage payments) now exceeds $15,000/ month. You can see a positive article about our project written by the local newspaper on our website, just go to: www.acgmhc.com Mike Conlon is the founder and majority owner of Affordable Communities Group, LLC based in Cary, NC. He is also the author of Unconventional Wealth: The New Mainstreet Millionaires that is available through Amazon.

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Realty411Guide.com PAGE 36 2014

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Vet Out Turn-Key Property Providers, pg. 24

Image: Pavelis / 123RF.com

Our member told me, Earlier this year, I had spoken with the guy currently behind bars and explained how reneging on commitments (guarantees, payments) made during the property purchase would undermine confidence in the company. He believed, probably rightly so, that if the company didnt make such across the board adjustments, the whole company would go under. According to the lawsuit, it was his partner who relied on the above more desperate title fraud approaches to raise cash and keep the company going. Whatever the reason, no one wants to get stuck in a situation like this, and they dont have to. There are so many ways to protect yourself when buying real estate. I asked our member what advice hed give. Heres what he said:

entire retirement in one geographic area, especially a distressed location. 2. Its best to avoid highly distressed regions if you are a first-time investor. 3. Use a reputable title company or attorney to make sure the property is properly recorded at purchase. 4. Always purchase title insurance to ensure clear title. 5. Be leery of turnkey deals that isolate the owner too much from rental property operations and financials. 6. Prior to purchase, insist on hiring your own property inspector. 7. Determine how the appraiser was selected. I suspect that Bay Area Equity Group was trying to influence the appraisal process. 8. Visit the property (or at least visit the area initially so you understand what

youre buying. 9. Look up public records so you know who currently owns it, how much it sold for before and if it has IRS tax liens or other liens. 10. Ask for a scope of work done prior to purchase, and verify it with an independent inspector. Real Wealth Network has been vetting out property sellers since 2003. These are just a few of the items on our checklist. If youd like to receive the full due diligence checklist or receive a list of companies that passed our scrutiny, simply visit www.RealWealthNetwork. com or call 888.RWNetwork About the Author: Kathy Fettke is the CEO and Co-Founder of Real Wealth Network. She specializes in helping people build multi-million dollar real estate portfolios through creative finance and planning. Kathy is also host of The Real Wealth Show and is a frequent guest on CNBC, FOX Business News, CNN and CBS MarketWatch.

10 Ways to Protect Yourself

1. Do not invest all your capital or

ThE SENSEi SpEAKS

On What, Where & How To Invest In 2014

ensei Gilliland, of the extremely successful 12 ROUNDS real estate investors club, and Black Belt Investors just gave Realty 411 the scoop on Remote RehabsSM, and where to find big spreads like it was 2010 again The U.S. housing market may be even hotter than the club house fireplace at this time of year, but many new and veteran real estate investors alike are finding themselves battling heavy competition, rapidly rising prices and the logistical challenges of out of area investing. Sensei Gillilands simple Find it. Fix it. Profit. Mantra hasnt just helped him come through some of the toughest years the U.S. housing market has ever experienced unscathed. It has evolved into the formidable weapon many rapidly growing investors, portfolios and investment businesses are crediting with using to get the edge Black Belt Investors. In the past four years Black Belt Investors has been responsible for an incredible number of transactions. A big part of this certainly has to do with the focus on investing in the individual success of other investors. Rather than simply trying to pitch investors or consumers on a product, or overpriced inventory which needs to be shed, Black Belt Investors offers a full suite of assistance from education to investment opportunities to coaching and hard money lending in order to help all investors grow from the ground up to achieving their personal goals. Sensei explains this unique approach has helped many with their own breakthroughs, and just making what they were already doing better. This variety of strategies has helped others to reduce risk and hone in on what they really want more of. To date Sensei Gillilands students have used these strategies to generate cash via flipping houses, lease options and owner financing. Still, when asked which was his favorite real estate investment strategy for 2014, Sensei says he is still bullish on Remote RehabsSM. Remote RehabsSM enable global investors to benefit from accessing discounted properties, adding value and either flipping them for sizable, fast profits or holding them for ongoing cash flow and passive wealth building. Satisfying the demand for strong returns and below average acquisition costs, with the perk of having multiple exit strategies to choose from, Remote RehabsSM enable investors to engage in the most profitable markets, at the right times and leverage expert teams to maximize their returns. Obviously the biggest question most have today is where to engage in remote rehabbing? Black Belt Investors continues to see primary markets such as Las Vegas, Phoenix and Southern California as the territory of wealth builders with an extremely long outlook, or who are okay with modest yields in exchange for enhanced safety. These markets continue to attract plenty of domestic and foreign interest, yet to a certain extent have suffered due to this popularity. Rental property investments in these areas can be great for long term hold and wealth preservation, but lack the advantage of rapid price appreciation today. Secondary is the new primary according to real estate experts and analysts across all industry sectors. Sensei Gilliland points
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to secondary markets such as Kansas City, MO and Indianapolis, IN as offering a superior solution for those seeking a blend of appreciation and cash flow. However, for those looking for rapid wealth building Senseis top pick for Q1 2014 is Cleveland, OH. As he puts it Cleveland, OH is now like Southern California in 2010,Its ripe with pent up equity, offering tremendous benefit to cash flow and value seeking investors. Put simply Sensei sums up the current opportunities as being able to pick up a beautiful home, in a good suburban neighborhood, with a strong cap rate, but warns the window of opportunity is short. Right now Sensei paints a good example of this opportunity as being able to scoop up one of these homes which previous sold for around $100k, for just $45k. He also points out some of the benefits of this market right now include: 1. Getting ahead of hedge funds (and profiting from the rise they will provide later) 2. Affordable homes 3. Cleveland is pumping millions into revitalization 4. A city committed to avoiding developing a reputation like Detroit, and determined to maintain and lift local property values 5. A county invested in the success and protection of real estate investors through point of sale check, home inspection reports, monitoring contractors and ensuring investors are not overcharged on rehabs This is backed up even further in recent news headlines: Q3 2013 figures from Ohio banks show $2B in REOs and $35B in non-performing residential loans on their books On Oct. 17th, 2013 it was revealed Starwood Hotels & Resorts Le Meridien brand was joining the Cleveland rebirth with a new luxury hotel Nov. 4th, 2013, Crains declared Cleveland is in the vanguard of urban revitalization strategies Forbes says more than $3.5B is currently being invested in redeveloping the Cleveland area Most real estate investors are probably familiar with the concept of turnkey and remote investing. So what really separates Black Belt Investors from the rest and has fueled the firms success? Sensei says the real differentiating factor in working with BBI is that unlike other investment firms and the endless line up of gurus out there which all appear to be punting their own inventory, much of which is being sold at, or even above market rates is built in value, and being able to make acquisitions at wholesale rates. Rather than picking from an old menu of stale listings which have been turned down by other investors, those investing through the Remote RehabsSM program are helped to find hot and fresh opportunities which meet their individual criteria and investment objectives. Find out more about Sensei Gilliland, Remote RehabsSM, and request your free copy of Black Belt Investors Cash and Wealth Report online at www.BlackBeltInvestors.com.
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Flipping Houses with

Duncan Wierman & Anthony Patrick

A Question & Answer with Linda Pliagas

oint ventures are common in the real estate industry. Many people in the industry team up to do deals or for business ventures, usually they reside near the other, but these two investors are so experienced theyre able to make it work while living in opposite sides of the nation. Anthony Patrick and Duncan Wierman are so experienced in their craft that distance in not an issue for them. Each bring a different skill set to the table and combine their talents in order to lead others into the profitable yet often risky world of real estate investing. I recently had the opportunity to meet up with Duncan and Anthony and learn first-hand about their latest venture! Learn how this duo land deals in one of the most competitive markets in the world: Southern California. Linda: Well, fellas, its such a pleasure to catch up with you. Please tell us about your Flipping Houses Bus Tours. Anthony: We demonstrate our methods and reasons why we do things the way we do so you can be assured of success. We reveal everything! You will actually participate in the process and we will be by your side to correct you as you go. (you will not make mistakes with us advising you) We take pride in teaching you how to succeed. We are confident that when you leave us at the end of the workshop that you can duplicate what we taught you to do, so YOU can create FINANCIAL success in your life.

Duncan: The workshop is an exclusive opportunity for those investors who are tired of reading the books, listening to the same CDs over and over and who are ready to finally take action and learn hands on from people who do this every day. Q: Why did both of you decide to partner up for the Flipping Houses Bus Tours and what are your strengths that you bring to the table? Anthony: Between the both of us, Duncan and I have over 25 years of experience in the art of investing. From marketing, deal evaluation, rehabbing and most of all getting the most out of our students investment. Duncan: Yes, and we both have mentored ourstudents one on one in all aspects of real estate. Because of our success in this business, we have decided to join forces to teach people hands on instead of theory. Q: Where are some of the areas you focus on for investing and why did you choose those markets? Anthony: We look for below market homes on the MLS because if we dont, we could miss out on a gem, homes with opportunities to create their highest and best use. Most investors arent doing this simple search! Also we target for sale by owners (FSBOs) and out of state owners because when vacancies and repairs

happen, this type of owner is likely motivated to sell. Probate is also our niche. Q: Are the properties your team is visiting foreclosures, short sales or auctions? Anthony: They are REOs, Short Sales, FSBOs, deals on the MLS and also internet leads Q: Tell us what students can expect to walk away from once they take your training program? Duncan: This is a true Hands on and step-by-step experience. There is no better way to learn than having us and our power team there to hold your hand every step of the way. In our workshop we will be previewing and introducing you to various deals and projects that we have already run the numbers on. We also teach our students how to find lots of hidden deals on the web and train them on how to find the most motivated seller leads using internet marketing methodologies. Q: Can you take us on a typical day of the tour, how is the event organized? Anthony: On our tour you can expect to learn how to set up your team, how to find and work with a Realtor. You will discover how to find a deal, how to find comparable properties. We will explain the ARV (After Repair Value) and figure out if a property is a fix and flip or a buy and hold. We will talk about wholesaling as an exit strategy for the deals you pass on. The whole class also visits a local Home Depot store and we go over materials needed for a typical rehab. Its a

jam-packed tour because we also visit numerous houses: one under construction, one in the middle of construction, and a finished home in escrow. We also see a couple of deals that we have yet to see ourselves and go over them with our students. We teach them what to look for and whether an offer should be made or not. Lastly, we wrap it all up from start to finish and go over how we can get deals accepted. Q: How much is the tour and what does it cover? Duncan: The investment is very reasonable, we wanted to make this an affordable price point for everyone. It is only $197.00 for a three-day tour. Yes, that includes Friday, Saturday and Sunday. Two full days in the classroom and one action-filled day in the field. Q: The property trips sound fantastic! How often do you have the Flip Buying Tours? Duncan: We host them only three times a year and we do limit the number of people who can participate because we want to really give personal attention. We always sell out too so be sure to book your spot early. Q: Will students be ready to do their own rehabs after taking part in your tour? Anthony: Absolutely! We never hold back in providing all the information and knowledge needed to get started making money in your market. This is a step by step event with a simple road map for each person who wants to learn not just rehabs but everything in real estate. Q: Do you share your crew and contacts with your students? Anthony: Yes, we want our coaching students to use our power team so they can get a deal done fast. Our track record is phenomenal, nearly 80% of students have a deal in their first 60 to 90 days! Duncan: We give our students access to great people, individuals who are the best in their fields, such as Realtors, escrow and title companies, contractors, electricians, home inspectors, hard money lenders and we even let them work with our marketing team. Linda: Well thanks for your time, Anthony and Duncan, continued success with your phenomenal property tours.
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Photographs - Opposite page: The Flipping Houses Bus Tour provides in-depth live education. This page, Anthony Patrick, Duncan and their team rehab seven or more properties a month in Southern California.
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Investing Secrets
of the Rich!
They Invest in Solid Assets The ultra-rich are pretty conservative when it comes to investing. They sink their money into tangibles like property, precious metals and even art. Stocks and securities make up a surprisingly small part of their portfolios. The takeaway for real estate investors: as Jason Hartman says, real estate is a vehicle for building long term wealth a tangible commodity that will be in demand as long as people need places to live. They Dont Speculate Very wealthy investors stick with known quantities and stay away from hot new deals promising quick money. Although they have money to risk, they listen to smart financial advisors and keep their wealth in proven assets with a long track record of success, such as property, solid businesses and physical commodities. For income property investors, the same is true. House flipping and real estate schemes promising fast money dont deliver for the long term. Creating an income stream that lasts calls for patience and perseverance backed by good financial advice and an investing strategy with clear goals. They Get Good Advice Rich investors have a plan and they look for good financial advice to help them implement it. Although theyre in charge of their investing decisions, they

from Jason Hartmans Financial Freedom Report

rom corporate CEOs and entrepreneurs to sports icons and political figures, very wealthy individuals invest for success.

recognize the need for qualified money managers to execute those decisions. Thats good advice for the independent property investor and one of Jason Hartmans investing commandments too. You dont have to be a multimillionaire investor to learn about investing and locate the best advice you can afford. They Invest in Themselves Whether theyre the face of a corporation or a face on a billboard, ultra-wealthy investors invest in themselves. They recognize that their image and their brand plays a role in their investing success and they put money toward developing and protecting that brand. And you dont have to have that high a profile to recognize the importance of seeing your investing career as a business, with a story and a personal brand all its own. That means investing in the right tools for managing your enterprise, from courses to computer software. And it also means creating and presenting a professional image when youre conducting investing business, such as interviewing tenants. It often said that the rich are just like you and me. And while thats not necessarily true in all ways, even the smallest income property investor can make good use of the investing secrets of the ultra-wealthy.
Image: Pixel Bliss / 123RF.com

While your investing career may not have quite the scope of those multimillionaires, you can share in some of the investing strategies that they and their financial managers use to keep those mega- bucks coming. They Invest nationally Very wealthy investors cast a wide net, putting money into solid investments in places far beyond their local area. They keep an eye on trends in emerging markets, often putting money into lesser known markets and enterprises under the radar of conventional investing wisdom. Investors in income property can use this strategy too, by taking Jason Hartmans advice to diversify, looking beyond local markets for potential good deals. Investing in another city or another country creates a hedge against downturns in any one market.

House flipping and real estate schemes promising fast money dont deliver for the long term.
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reWEALTHmag.com

or many people, the first foray into creating income from real estate comes from renting out a home they already own. Life changes and economic conditions can quickly turn homeowners into landlords. But making that shift successfully requires re-thinking your role and your relationship to the property.

Close Out Utility Company Accounts Although some landlords choose to cover certain utilities, that usually happens with a multi-unit property. Before renting out a house, though, its important to ensure that youve closed out any utility accounts held in your name. Tenants will need to start their own utility services so that the new landlord isnt held responsible for missed bills.

even a lawyer to create a good rental agreement can help forestall issues down the line. PLAN FOR TAX TIME As a rental property owner, youll be reporting rental income on your taxes. But youll also be reporting a variety of deductible expenses. Although tax laws are subject to change, the long list of deductibles begins with your

Change Your Insurance If you decide to rent out a home that once was your primary residence, an important first step is to switch from a standard homeowners policy to rental home insurance. This covers the property itself and provides liability protection, but it doesnt cover possessions, furnishings and the like. That becomes the responsibility of tenants, who can get renters insurance to protect any possessions they bring onto the property.

Prepare to Deal With Tenants One of the most daunting tasks facing new landlords is actually renting out the property. It may be simple to advertise the house for rent, but then come steps like screening tenants and finalizing the lease agreement. Inexperienced landlords may fail to screen tenants carefully, or leave important clauses out of the lease or rental agreement. Getting the help of a real estate professional or

mortgage interest and includes such expenditures as real estate taxes, costs of advertising the house for rent, travel, accounting and depreciation on the house. Repairs and renovations can also be deducted under certain circumstances. And you can also deduct expenses related to your home office, which brings us to the last point: THINk LIkE A PROFESSIONAL If youve made the shift from homeowner to landlord, you now have a business, so its important to see your income property in that light. Even if you choose to outsource aspects of managing the property to a management company, youre still the one in charge. Maintaining a home office, keeping goof records and establioshing a businesslike relationship with tenants builds credibility and establishes authority. Renting out your residence may be a response to unexpected circumstances, or the first step toward an investing career that involves multiple properties, as Jason Hartman recommends. With careful planning, though, learning to think like a landlord can save headaches and open doors to building long term wealth.

Jason Hartman has been involved in several thousand real estate transactions and has owned income properties in 11 states and 17 cities. His company, Platinum Properties Investor Network, Inc. helps people achieve The American Dream of financial freedom by purchasing income property in prudent markets nationwide. Jasons Complete Solution for Real Estate Investors is a comprehensive system providing real estate investors with education, research, resources and technology to deal with all areas of their income property investment needs. Contact Jason at www.JasonHartman.com or 714-820-4200.

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Birmingham Bus Tour

markets

Summit Assets Group Shares an Undiscovered Investors Dream

called Miss Myras BBQ Pit for a taste of southern hospitality and flavor.With full stomachs, the investors then toured the downtown area, University of Alabama at Birmingham, and other key development areas. A local attorney turned tour guide entertained the investors with critical economic factsinterlaced with humor. In addition to learning about the different economic growth factors that create the right investment environment in Birmingham, investors were able to walk through properties and see neighborhoods first hand. The viewed properties were in different states of the rehab process, and the investors were able to meet and mingle with some of the contractors on-site! On Sunday, the Summit team and investors took full advantage of the entertainment factor with NASCAR at the Talladega Super Speedway. The race wasamazing (even if they didnt finish the final lap!!) Watch the video at http://youtu.be/FLYrY3QIqSg.

ummit Assets Group, a leading provider of turnkey passive income properties for real estate investors, hosted a buying property tour in Birmingham, AL on Saturday, October 19th. After many successful tours in Atlanta the company has expanded into the Birmingham market Lori Greymont because of its strong economy, growth projections, and ability to generate dependable cash-flow for real estate investors. The bus was filled with local, national and international investors, as well as a film crew from the largest Japanese television network. The company showed off some of the assets that make Birmingham a leading investor city in the U.S. in addition to a small sample of property opportunities. The tour started off Saturday morning when investors had

Take Care,

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PAGE 44 2014

Lori Greymont

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Image: Sepavo / 123RF.com

an opportunity to learn from Summit Assets Groups CEO and radio host, Lori Greymont. Education was one of the main focuses of the weekend as investors heard about the economic impact of recent developments in Birmingham and how local government and civic organizations bringing in long term job growth. Greymont shared that real estate has historically increased faster than wages and inflation and now is the time to take action while prices are still well below the cost to rebuild. After the educationfrom Lori, investors loaded up the bus and the tour began. the first stop was lunch at a local haunt

ummit Assets Group and CEO Lori Greymont continuethe Make a Difference mantra. But this mantra is actually a way of life. They make getting to know their clients on a personal level a pivotalbusiness component and hosting the buying tours is just one way to meet and connect with their valued clients. Its all about helping the investorssecure a financial future with successful real estate investing- and having an ally to assist in the process. Our combined 65 years of experience bring peace of mind to our investors - Greymont said. Summit is working on the next tour and dates will soon be available. Whether you are a veteran investor, just getting started, or even thinking about investing in your future, join Summit on their next tour for both the real estate education and the opportunity to buy investment properties that generate dependable passive income. Summit Assets Group invites real estate investors to download their *FREE* market checklist for identifying the best markets for dependable cash flow at http://www.summitassetsgroup.com/ideal-market or call them at 888-298-0652 to learn more about available turnkey properties.

Summit Assets Group Prepares For New Buying Tour

Manifest Miracles
By Sam Sadat

In Your

Life

Image: Roystudio / 123RF.com

oull be happy to know that, last I checked, the laws governing miracles have not been repealed. Moreover, manifesting miracles is not exclusive to a lucky few. Theyre available to all who refuse to believe in the concept of impossible. After all, couldnt impossible be simply read as Im possible? Although the mechanics of creating miracles in ones life remain mysterious, many of us, consciously or unconsciously, have already made them happen in our own lives - or at least we know people who have. Lets be clear; were not talking about parting the Red Sea or bringing the dead back to life. The word miracle simply means any marvelous, wonderful, or amazing occurrence. Being the cause of such an occurrence is ability innate to all of humanity and, though dormant in most of us, this ability can suddenly emerge under the right circumstances. No one really knows the precise mechanics of how miracles are manufactured, but Ive been researching this phenomenon for years and I think Ive been able to compile some pieces of the puzzle. Below are just a few principles to experiment with. I hope you will begin to see that you too can make miracles happen in your own life. Believe that miracles are real and can happen to anyone. After all, whatever you want is already here in the world. Where else would it be? All you need to do is make them appear in your life. Believe it and youll see it. Its not the other way around. Examine what you believe to be impossible and then change your beliefs. This is done by changing your thoughts. For this, self talk is crucial. Talk to yourself in a positive empowering way every day to replace those limit

ing thoughts you were programmed with since childhood. Dont expect a miracle. Be a miracle. This is achieved through knowing who you are, separate from your reputation, labels and possessions. Who are you really? A clump of matter suspended in time and space or a magnificent source of love, energy and potentiality? Find a quiet place, close your eyes and try to perceive your greater self. Youll soon realize youre not a human being having a spiritual experience; youre a spiritual being having a human experience. You often hear me talk about how were all energy. This is not New Age chatter but Quantum Physics talking. Energy in

Photos by John DeCindis

different frequency or vibration becomes matter in all its varied shapes and forms, us included. Miracles dont happen when youre hard and closed up. They happen when youre soft and receptive. You can do this by getting connected with and resonating with the rhythm of life. The more you can harmonize your thoughts, words, and actions the more life responds to you. And this response can sometimes take the form of the miracles you so desperately seek. Meditate often, walk in nature, and look up toward the skies rather than down toward the ground. Thats one big difference between humans and animals. We can hold our heads high and look at the skies while animals are gazing down. Miracles are up above not down below.

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Now go out there and be a miracle!

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The Package Deal

Brett T. Immel

n an increasingly crowded real estate investment company market, Hanover Equity Groups founders recognized they needed a way to make their companys offerings truly stand out from the competition to differentiate themselves in a way that didnt Preston Despenas just bring new clients, but would keep existing ones coming back again and again. For senior partners Brett T. Immel and Preston Despenas, the key was looking at the element of real estate deals that seemed to cause the most problems for self-directed retirement account investors: getting the necessary non-recourse financing. The self-directed retirement account investor would go in and find the property that they wanted to purchase, and go to contract, said Despenas. When they then went to find their own non-recourse financing, they found out that there wasnt much available; there are really only a couple of nationwide banks that provide non-recourse financing, and theyre very small institutions. With relatively little money to lend, Despenas added, those institutions naturally became more selective when evaluating new deals, and many investors applications were declined. Seeing the opportunity to bring value to their clients by leveraging their own existing relationships with private lenders, banks and other institutions, Despenas and Immel decided to offer their clients a package deal thats become the cornerstone of their business model a genuinely turn-key real estate investment that comes with all the trappings that traditionally entails, bundled with non-recourse financing thats already in place. When youre walking into an investment with Hanover Equity Group, the properties have already been rehabbed -- or theyre new construction, said Immel. The management team is in place, and theres a paying tenant in the unit. But youre also getting financing thats completely lined up, from day one, with no qualifications for the individual, Its something no one else in the country offers, said Despenas. Pre-qualified, pre-approved, non-recourse financing available on every single one of our assets. And remarkably, according to Despenas, that non-recourse financing they offer sits just south of 5% a market-leading position thats part of the attractiveness of the package. Its not magic, just simple due diligence bringing its own reward; because Hanover Equity Groups process for vetting properties is so thorough, their lenders feel comfortable enough loaning on the asset at highly competitive rates. Were doing all the necessary front-end diligence, said Despenas. Were professional real estate investors ourselves, we do this 14 hours a day, 7 days a week. After a property
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By Robb Magley

Matching Non-Recourse Financing with Investment Properties Puts Hanover Equity Group On The Map
passes our acquisition criteria, we take that over to our third-party banks and private lenders; they put those assets through their vetting process, and they come back to us with the pre-approval. Eliminating that big hurdle in the buying process is one of several steps Hanover Equity Group takes to make investors feel more comfortable, according to Immel; theres a certain amount of fear felt when tinkering with ones retirement funds, and anything that makes the process more familiar helps. A lot of investors have become so used to people making decisions for them, said Immel. For example with their stocks, bonds or mutual funds, all theyve had to do is open up an envelope, look at their accounts once a quarter, and see how its doing. But, he added, they also know they could be doing better if their money was in cash-flowing real estate. Deep down they know that theres a better opportunity for their investment and their retirement, and theyre sick of people making the wrong decisions for them. When you go into self-direction, the investor is really able to write their own story. Weve got a lot of people out there looking at fix and flips, or rehabs on property, a lot of them are out there using hard money, said Despenas. But when youre paying for hard money, thats eating into your return. You have to ask, are you better off doing a longer term buy-and-hold with 5% on a non-recourse mortgage, or paying 15-20% interest on hard money to rehab a property, before you even get it rented? Thanks to its network of lenders, Hanover Equity Group can follow the deals wherever they go, without being locked into a specific market; its a flexibility that Immel said lets their clients do better, more often. Their clientele remain loyal and purchase multiple deals. When we have investors that come back to us month after month, year after year, re-investing with us and purchasing real estate with us, its because they know were not just selling them a piece of real estate and washing our hands of them. This is about building a relationship with each and every one of our investors. The price points that we have are very introductory, where your mom and pop, novice investor can get in and really change their future, said Immel. Whether youre working class, a small business owner, a successful doctor or lawyer, or just anyone who knows they can do better than theyre doing with their retirement. For more information about Hanover Equity Group, visit the website: http://hanoverequitygroup.com/
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By Linda Pliagas

very profession has tools of the trade, products which help us get ahead in our industry. Thanks to innovative technologies, investors now also have a fantastic tool to zero in on neglected properties. Find Motivated Sellers is a new product, which can help investors locate vacant homes around the country or right in their own backyard. Created by entrepreneurial investor Chris Richter, who partnered with veteran industry leader Kent Clothier, the software is helping many sophisticated buyers find their deals. In fact a loyal reader in San Francisco, Jimmy Tu, a master wholesaler and rehabber, was able to land three vacant property deals in less than three months utilizing the Find Motivated Sellers system. I recently had the pleasure of interviewing Chris and Kent so they could explain this exciting new technology and how it can benefit more of our readers. Linda: Tell us a bit about the Find Motivated Sellers Now system. How did it come about? Kent: Find Motivated Sellers Now is the product of necessity and data insight. In 2008, cofounder and creator Chris Richter embarked on a three month research mission to uncover insights in the property data that would act as an early indicator that a property had a high likelihood of being sold at discount. One glaring indicator associated with many of the deeply discounted sales, as well as those that sold quickly, was that they were vacant. Linda: What are some of the benefits to using Find Motivated Sellers Now? Chris: The benefits are time and money. The platform is designed to allow any user, regardless of experience, to log in and quickly and easily create and distribute marketing to a highly targeted list. Its quick and easy, with just a few clicks of a button. Due to the list being targeted to an audience with a far higher likelihood of turning into a seller, the ROI is increased dramatically. Linda: Tell us about the partnership you formed for this new marketing tool. Chris: I reached out to Kent Clothier in November of last year and demonstrated how I was using this method to find highly motivated sellers, off market. Despite being in a market with one of the tightest inventories in the country, I was able to effortlessly locate phenomenal deals. Linda: I like that a mailing campaign can be executed directly from the system, which makes marketing easy to do. Can

VAcANT PROPERTIES
= Motivated Sellers!
you please discuss that further? Kent: The system is designed to be dropdead simple to use, even for folks who are not tech savvy. Users can simply log in, click their state, county, or city, then run a search based on their criteria. Investors can zero in on vacant homes, vacant commercial, high-equity properties, etc. From there, users can export to excel or simply mail directly from within the system to their list. It is the built in simplicity and functionality that really makes it such a powerful tool. make someone want to sell. Some common themes we see in vacant homes where people do want to sell include: preprobate, family member moved to nursing home, eviction, seller moved out of area, rental vacancy, death with no probate, and even an occasional jail sentence. Linda: What other insight can you add that investors can learn from? Kent: Dont be afraid to mail more and do extra marketing, it will make your phone ring. Linda: Does your system have sample letters that can be used? Does it also provide phone numbers? Chris: Yes, the system includes letters for both investors and brokers that have been tested repeatedly and proven to work well. Again, this is a push-button system, we have done all the heavy lifting for you. Once a user has set up their account, they are literally a couple minutes, and a few clicks away, from having proven copy in the mail and out the door. We do not provide phone numbers, we want them to call us. Linda: How can we learn more? Chris: Readers can see our demonstration on www.FreeVideoFromKent.com Thanks and let us know how it goes.

tools

Linda: Why are vacant property owners a great audience to zero in on? Chris: Vacancy is what we call a leading indicator of distress. What the numbers tell us is that although not all vacant properties have distressed owners, most distressed home sales are vacant. What makes it the most profitable among lists for direct mail is the fact that the property is generally vacant before it is an REO, before it is probate, before it is listed, before you see a lien, etc. The vacancy is typically the first warning sign that someone may need to sell soon. Previously this list wasnt publicly available. Linda: Why do good homes end up being neglected and abandoned? Kent: Homes become vacant for many reasons, not all of these reasons would

REAL ESTATE INVESTING PROFITS

New Webinar Training...You Will Be Amazed At What You Now Have At Your Fingertips!

Click a Mouse... Buy a House!

Discover PROVEN TECHNOLOGY that SYSTEMATICALLY SEARCHES your area and Finds Motivated Sellers, Vacant Properties & Smokin Hot Deals!

Kent Clothier

GO WATCH NOW!
www.FreeVideoFromKent.com

Chris Richter

FINDMotivated Sellers NOW

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P R I VAT E

411

Meet the Leaders of Real Estate Finance

FirstKey Lending

Americas premier nancing resource for 1- to 4-family rental housing portfolios provides loans from $1 million to $100 million. Whether you own 5 rental properties or 5,000, FirstKey Lending can provide you with the nancing you want and the service you expect.

CONTACT FIRSTKEY LENDING TODAY

Call us at 1-855-299-1944 or email info@rstkeylending.com www.rstkeylending.com

2013 FirstKey Lending, LLC. All rights reserved.

BIg CAPItAL For Smaller Investors

FirstKey Lending Unleashes

2013 FirstKey Lending, LLC. All rights reserved.

ince its inception FirstKey Lending has been specializing in the finance of single family portfolios in the $5 to $100 million range. Several months ago the media was abuzz with news of private equity giant Cerberus Capital Management lending its billions to owners of 1 to 4 unit rental portfolios. Now, New York-based FirstKey Lending has further expanded this initiative with the unveiling of its Lending Express program, designed specifically to accommodate owners of 1 to 4 single family portfolios who are looking for financing in the $1 to $5 million range. Cash is now flowing to an expanded group of investors through FirstKeys new program, creating new opportunities for smaller rental portfolio investors to tap into.

By Tim Houghten

FirstKey is known for their $1 to $100 million loans and boasts an impressive executive team of some of the top minds, money managers and mortgage experts in the industry. Randy Reiff is the firms Chief Executive Officer, whose resume is a lineup of notable positions, including heading up the Global Commercial Mortgage Business for both J.P. Morgan and Bear Stearns. In an exclusive interview with Reiff, he broke down the advantages of the new Express program for Realty411 readers Its no secret that it has historically been challenging for real estate investors looking for funding under $10 million. Reiff explains that it was this void and need in the market, as well as a unique advantage in efficiency and infrastructure, which were behind the decision to launch FirstKeys new small balanced lending program. Specifically the CEO says: FirstKeys infrastructure and expertise have enabled us to role out this exciting new product, which caters to customers borrowing $5 million or less. The FirstKey Lending Express program offers a streamlined documentation and closing process tailored specifically to this customer base. The FirstKey Lending Express product provides swift funding for deals in the $1 million to $5 million range. Reiff explains it has been specifically designed for smaller port-

FirstKeys Randy Reiff LEAkS the 411 on Express Lending

Why You Want This Loan

folios of 1 to 4 family rental homes. The company employs a team of individuals who are intricately familiar with the nuances of financing these portfolios effectively. In other words you are not just dealing with an out-of-touch lender that doesnt understand the title, documentation and performance history hurdles that can come Loan Amounts: with acquiring $1,000,000 to $5,000,000 or refinancing a pool of cash Rate Type: Fixed flowing properLoan Terms: 5 and 10 year ties. Other factors to love about this Property Type: 1 to 4 mortgage program Single residential family include the poLoan-to-Value: Up to 75% tential to borrow under an LLC or Amortization: 20 to 30 year commercial entity Interest Rate: Competitive pricing with non-recourse loans, very competitive rates, up to 30 year amortization, and the speed of getting to the closing table. Borrowers can take advantage of 5, 7 and 10 year loan terms, across the U.S. with LTVs as high as 75%, to enable portfolio growth and/or continually optimize investor performance. According to Reiff, current turn times are generally around 4 to 6 weeks, depending on portfolio size, which is pretty impressive in this arena. Given the granularity of a portfolio, third party reports and title work are the biggest lead-time items and are generally tackled immediately, to expedite the approval process. Reiff welcomes investors to bring us your Randy Reiff portfolio and let us evaluate your options.

FirstKey Lending Express Program Features:

For fast loan assistance, real estate investors can either call 855-299-1944 or visit FirstKeyLending.com.

Borrowers can take advantage of 5, 7 and 10 year loan terms, across the U.S. with LTVs as high as 75%, to enable portfolio growth and/or continually optimize investor performance.
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An Interview with Managing Partners of MOR Financial Services, Inc., Sean Morsi & Ajay Mehra

Meet the Future of Private Money

By Tim Houghten

n the words of the great Bob Dylan: the times they are a-changin, for Sean Morsi and Ajay Mehra -- CEO and CFO of MOR Financial, respectively -- the notion of shaking things up has been woven into their companys genetic code. It may come as a surprise to hear that an asset-based lender, known for utilizing cutting-edge marketing and high-tech analytics, assert for a traditional approach in customer service and building lifelong client partnerships. With an average yield returning 10.5% for their lenders, Morsi and Mehra have compiled more than $70 million in committed capital from their investors, with roughly $35 million in their active in-house servicing portfolio. Built in a relatively short period of time with a focus in Southern Cali

fornia, where both were raised, the two have also set their sites on penetrating the Florida, Nevada and Arizona markets. Ajay came on board as a partner in MOR Financial in 2009, with both partners coming from established lending backgrounds before re-shifting focus after the market crash. Since then, weve grown into a premier private lender here in Southern California, specifically around Los Angeles County, notes Morsi. As the new kids on the block, the business moguls captured a very large percentage of the market in a very short span of time. A large percentage of their competition has been in the private money lending sector for 20 years or more.
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Mehra added that the industry had always been something of an intuitive-based one, which both men felt kept it from growing like it could. We wanted to deliver structure, said Mehra. We wanted to shift the industry from the whimsicality it had. The demographic for private money investors today, according to the executives includes much of the younger mindset as the realm of the hard-luck borrower. Mehra suspects Maybe than was seen 10 or 15 years ago. The change in development is 20 years ago, that was the case, but a lot has changed. Banking spawned mainly from disappointed and lack of confidence with guidelines being as stringent as they are have really opened the stock market and the desire for more tangible investments. things up for private money lending. Where else are people supThanks to the stock posed to go to get the access market crash, several savto leverage? vy financiers have a sour Morsi adds, Todays taste in their mouths, yet investors are strong and are still hungry for yield, hungry. Since MOR comes said Mehra. We are from the customary lending Listen To Your Head. View every house you buy as a seeing people who would side, the company strives business transaction; dont let your heart get in the otherwise have investto maintain and deliver on way. Youll get carried away, said Mehra. Youll get ment portfolios centered customer service. And deliver wrapped up in making things the way you would want around Wall Street now they did. MOR Financial has them if you were going to live in there -- and thats not deviating into real estate. set themselves apart by taking necessarily attractive for an end buyer. Thats how you Today, instead of owning the insight of due diligence end up overspending. Microsoft as a growth and recalibrating it in a way HAvE A PLAN. Take the time to map out an implestock, youthful investors to center on becoming trusted mentation plan and do your homework on the industry would rather invest in advocates for their borrowers. -- in particular, the area where youre buying. Often assets they can hedge. We always try to play The emerging generation our buyers have great ideas, theyve got a lot of knowlthe devils advocate for their with access to capital edge theyve accumulated from clubs and seminars, benefit, said Mehra. Not to doesnt have faith in the but theyve got no idea what to do with it, said Mehra. kill the deal, but to make sure stocks paper and would They want to implement, but they dont know how. Our our affiliates arent walking rather place funds into next MORSYNERGY event in February is going to be into a black hole. something concrete. At focused solely on implementation. As the companys directors, the end of the day, a hard HAvE A TEAM. The best deal can be derailed without Sean and Ajay look at every asset like real property is deal as though it was their having a team together to back it up -- specifically, connever worth zero. They own so they can provide bona tractors. Youve got to have a really fantastic contractor can hang their hat on that! fide feedback to their clienin place before you even start writing offers, said MehAnother way the industele. ra. Get references for your contractors, and call the reftry looks different today With repeat borrowers, erences -- that contractor can be the make or break of is the high-creditworthiMOR has rapport in the inyour deal. Morsi agreed: Thats typically what destroys ness of the borrowers. For dustry. The company aims to a flip, he said. MOR Financial provides an approved list the most part, the flipeducate everyone from their of contractors who are reliable and experienced. pers and other borrowers able borrowers to individuals Take Action. Nothing beats getting out there and MOR Financial scopes just breaking in -- and they doing your first deal, said Morsi. Once you have your have great credit. In work with a lot of beginners. system and team in place, then you can go out there and the past, hard money really hit it hard. lending was often seen Continued on pg. 62

Tips for Successful Flips

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Five Steps to Raising Private Capital

Jillian Ivey Sidoti, Esq.
any people assume that in order to raise capital, all they have to do is go out and find potential investors to whom they may pitch their idea. However, the laws regulating the sale of any security are such that operating in such a matter would be illegal.

Too often, people learn fact and decide that their aspirations are out of their reach or worse, raise the capital illegally, putting themselves at risk to suffer very serious consequences should the SEC catch on to what they are up to. Truth is, with the appropriate planning and effort, anyone can raise the capital necessary to execute their business plan. At a very abstract level, there are five steps to raising private capital, and they are as follows: 1. Develop Your Business Plan: One cannot very well start a company without a plan! At the very least, you want to put together bullet points of the who, what, when, where, why, and how you will put your company to work and start generating income. From there, you can flesh out the details. 2. Set Up Your Company: Your next step is to decide what type of entity is appropriate for your business plan, and in which state. A corporation, limited liability company, and limited partnership each have their respective positives and negatives. The particulars of your situation will dictate what best fits your company. 3. Decide What To Offer Investors: If people are going to invest money in your company, one of the most important questions they will have is what do I get out of this? First and foremost, you have to analyze your business plan to determine your baseline of what you can afford to offer investors in addition to what the market dictates in your particular industry. You must then determine what you are comfortable offering investors and land somewhere between those points. This could be a percentage return on their capital investment, simply just a share of profits the company earns, or a combination thereof. 4. Put Your Offering Documents Together: Not only may you be required by law to present offering documents (called a Private Placement Memorandum) to your prospective investors before taking their money in order to ensure you have made all the appropriate disclosures, but such documents will provide all the information they need to decide to make the investment. The private placement memorandum encompasses the three Ds disclaimers, disclosures, and details. 5. Find Investors: For many entrepreneurs, finding investors is the most intimidating step in the process. However, if you organize and execute

your capital raising efforts in the correct manner, then you will be well on your way to meeting your capital goals. Yes, this is a very boiled down step-by-step. Yes, you will need the advice of a professional to help you along the way. However, you need to realize that if you do give all the above steps the appropriate amount of attention, there is no reason that you cannot raise the capital you need. Jillian Ivey Sidoti is a partner in Trowbridge, Taylor & Sidoti, a boutique securities law firm with locations in California and Florida. Jillian may be reached for consultation at 323-799-1342 or at: jillian@jilliansidoti.com

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Image: Pogonici / 123RF.com

No FLUff!
The Godfather of HaRd MONEY on Private Money Lending in Todays Market
By Robb Magley

eonard Rosen is known alternately as the Godfather of hard money (hes been in the business for 35 years) and the Pitbull. Unsurprisingly, the second nickname has a good story behind it. Back in 1982 was my debut as a six oclock anchor on the national cable network Financial News Network, said Rosen. My very first night going on I was nervous. We had put all of what I was going to say on a teleprompter -- 13 minutes of me speaking. As I was getting ready, and the director was counting me down, he said 6 ... 5 ... 4 ... 3 ... Leonard, Im sorry, we lost everything on the teleprompter ... 2 ... 1 ... youre live. He laughed. And I do this, he said. I went 14 minutes, live, first time on national television. The guy walked up to me after and said, Only a pitbull could make that happen. And it just kind of stuck. Its hard to find a more fervent booster for the industry, whether you call it hard money or just private money lending; Rosens Pitbull Conference, which teaches the insand-outs of these loans for real estate, has produced 31 national conferences, with the next one set for February 20th in Ft. Lauderdale. And he doesnt see enthusiasm for the product dying down any time soon. I think its one of the best investments in todays marketplace, said Rosen. I think being a hard money lender is a great opportunity, and I think being an investor who invests with a hard money lender is a great opportunity.

Hard money lending gets its name from the practice of basing loans strictly on the hard equity and hard asset -- no fluff, said Rosen, no long stories about a borrowers 20-year plan for a particular property. The only questions are, one, what is the propertys value, and two, how much equity does the borrower have in it? said Rosen. The loan is based on the amount of equity they have in the real property -thats it. These loans have been a part of the marketplace for half a century, according to Rosen, but since 2008 and the real estate implosion, private money lending has grown to fill the gap left by traditional lenders. (The banks) have extremely tight lending criteria now, from a creditworthiness standpoint and a regulatory standpoint, said Rosen. They are not taking the normal business risks they were over the past 10 years; unless you have stellar credit, and a piece of real estate that you have significant equity in, the chances of getting any kind of real estate financing from them is very slim. Enter the hard money investors. The loans are primarily used in commercial real estate, investor fix-and-flips, or any short-term project where borrowing is used to solve a problem or bridge a situation until the implementation of an exit plan -- for example, to refinance or sell a property within a year or so. Sometimes investors will buy property on the courthouse steps, or REOs from the bank, and theyll get them at wholesale prices, said Rosen. Imagine a propertys worth $100,000, and an investor has $35,000 into it. In comes the hard money
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lender with the remaining $65,000; the investor improves the property, puts it on the market, sells it, pays the hard money lender back, makes a profit -- everybody wins. And, if the borrower doesnt pay, the hard money lender is in first position to take the property. Rosen points out that most lenders have no interest in being in the real estate business. They want to be in the lending business, he said. But if they have to take it, they can. One of the big keys to making the investment more secure for the hard money lender, according to Rosen, is to underwrite the asset correctly; loaning too much for a property can spell disaster should the need to liquidate arise. Every asset, and this includes real estate, has a retail value and a wholesale value, said Rosen. A retail value is what a property is worth given a 12-month marketing time to liquidate the property; the wholesale value is whatever the property is worth in a fire sale. If I had to sell this property in 30 days, what is it worth? Those are going to be different numbers. A hard money lender has to lend based on that lower value, so they have comfortable cushion built-in -- just in case they suddenly find themselves in the real estate business. Rosens conferences put a lot of focus on a trend hes watched become increasingly important in his industry: the creation of real estate funds, where a lender deploys not only his own capital but also that of a group of small investors under him.
Continued on pg. 61
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Market Intelligence
with Robert Fragoso
ANCHOR LOANS
it didnt make sense from a cash flow perspective, said Fragoso. During the downturn in 2008, We had a positive -albeit slightly positive -- year because we were able to read the writing on the wall and prepare and guide our clients through the murky waters. Today, Fragoso pointed out, inventory is lower even than it was in 2005; the challenge, however, is that in addition to low inventory and low interest rates, the market is facing low buyer demand. Nationally, 58% of all sales are cash And while the acquisitions arm is significant -- in 2011, Anchor Loans itself flipped around 500 properties in L.A. County -- the lending is still the companys backbone. Fragoso said Anchor Loans is, in important ways, more of a private equity firm than a traditional hard money lender. We dont have a set matrix, said Fragoso. Its very easy for us to adapt and tailor make a loan program required to meet any needs. And when new information comes

by Robb Magley

arket statistics roll off the tongue of Anchor Loans Robert Fragoso with the practiced ease of a true industry wonk; hes got a real interest, not only in what makes things tick, but in knowing about it before the next guy does -- and in making sure his investors can act on that information. Having the best information means the difference between having a great year and living through a financial disaster; according to Fragoso, Anchor Loans diverse organizational interests is part of what gives them their edge over the competition. In addition to offering private financing for investors who fix and flip properties, Anchor has an escrow company, a construction company, a software development division and an acquisitions arm -- each offering ground-level market intelligence to one another that can prove invaluable. Most lenders look at loans strictly from a lending standpoint, said Fragoso. But because were actually in the market ourselves, we can adjust more quickly than others might. Were able to see construction costs the day they change. And every time theres a shift in the market, we can see the effect in our own listings.

Its very easy for us to adapt and tailor make a loan program required to meet any needs.
along, Fragoso and Anchor Loans tell their investors to adapt, too. Two years ago, according to Fragoso, a lot of people were having difficulty finding deals for fix-and-flips in the cash-flow-attractive lower-priced properties. Because the company had carefully studied the goals and buying parameters of the large hedge funds investing in the area, Fragoso and Anchor were offering what mightve seemed like counterintuitive advice: spend more per deal. We told our clients, look, you realize all these hedge funds are coming in to buy these properties, and its like trying to fight an 800-pound gorilla, said Fragoso. They dont care about the price, and they have a billion dollars to put out there. So their guidance was to step out of that price point and look at higher-priced opportunities. The big guys couldnt buy properties at $400,000 and above, because
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sales, said Fragoso. That means cash sales have surpassed not just the first-time homebuyer, but every homebuyer. That means the fix-and-flip investor needs to re-think their rehabs to match the market -- and the all-cash investor isnt necessarily looking for the same things the first-time homebuyer was. Especially the guys who fix and flip in high volume, they tend to have a cookie-cutter approach -- where they do the same thing to every house every time, said Fragoso. The problem with doing that is you miss out on opportunity when changes occur. If you look at the all-cash investor, theyre looking for value add and additional opportunities. Gearing your rehabs toward those people might mean, for example, not completely 100% remodeling the house -- the opposite of what a first-time homebuyer would want. AnalyContinued on pg. 58
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JasonHartman.com
The Complete Solution for Real Estate Investors
TM

Market Intelligence with Robert Fragoso, pg. 56

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We have access to very unique "insider" private lending opportunities. Youve never seen hard money lending like this before. If you have $100,000 or more to invest and you want conservative, diversified, quick-turn, non-pooled investments that repay in about four to six months contact us for details. Our private lending program is simple and proven. The simplicity of our private lending program is unmatched. Visit www.JasonHartman.com or call 480-788-7823 today.
Listen to The Creating Wealth Show, Jason's Highly Acclaimed Investor Podcast: CW 274 Fiscal Hangover & Global Change with Keith Fitz-Gerald

So you love real estate... but you hate management?

sis in every region is more important today. According to Fragoso, income levels today are about a third lower than they were in the previous real estate cycle, and home prices are off only by about 20%; the result is an unsettling disconnect, an insecurity thats contributed to weak demand every bit as much as the higher bar conventional lending has set. When homebuyers find it more difficult to qualify for conventional loans, youre going to see a buildup of inventory and a lack of demand, said Fragoso. Forecasting for 2014, I think itll seem like a sluggish year but still positive due to low inventory. But there are niches in this market that are going to identify themselves that will make some people a lot of money if they can capitalize on them. When a market trends downward, according to Fragoso, a lot of investors worry themselves into inaction, thinking they cant buy anything. But the beauty of fix and flips, he added, is that youre not in the market that long. Youre in and out relatively quickly, said Fragoso. As long as you dont have a depreciation factor of 2% or more per month, you can adjust your percentage of profit and you can still make money. And while it might not be as much as you mightve made in a different market, youre still in there. Its easy to forget, but people made money in 2009, 2010, and 2011, said Fragoso. You cant be afraid of a down market. You just have to be able to identify where its headed. For more information about Anchor Loans, visit the website: www.AnchorLoans.com

CW 273 The Decline of the EuroZone with Alasdair MacLeod

CW 269 SWOT Analysis of Income Property, Facebook IPO & Case Study

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Private Lending Practice

By Mark Hanf, CEO of Pacific Private Money

6 Tips for a SUCCessfUL

5 - $50,000 loans than 1 - $500,000 loan or even 1 - $1 million loan! You can charge more points on smaller loans, plus the fees. They close quicker and easier. Larger loans fail to close at a much higher rate than smaller loans. FOCUs. Be specific in your advertising and marketing. Dont say that you are nationwide and you fund all loan types and loan amounts. I guarantee you that brokers who market themselves as such do not have a thriving business. StRIVe fOR tOtAL tRANspAReNCY. If you check out our website you will notice that we dont have pictures of skyscrapers or smiling people in suits shaking hands. We have pictures of actual deals we have funded. We have our names, addresses, pictures and email addresses for all the world to see. We use our direct phone number with area code so people know our business is located in the San Francisco Bay Area. Google us and you will find our detailed LinkedIn profiles. Weve never pretended to be something we werent. Your authenticity and transparency will attract customers to you in a big way. RefeR, dONt bROKeR. We originate loans. We rarely broker loans to other brokers. But we refer deals

Tremendous opportunities exist today for private money loan brokers. We found the following disciplines helped tremendously in growing a thriving private lending brokerage.
StAY LOCAL. The private lending business model is most successful when you focus locally. Most of your loans should be within 100 miles of your office. Most of your private lenders will be local to your community. You will succeed in funding loans because you are a local expert and you understand your local marketplace. Remember that a reputable private lender is really in the investment business first, and the lending business second. Invest in what you know and where you know. For example, we are Northern California-based, and we dont spend time on most Southern California loan applications. FINd YOUR sWeet spOt. If the funding capacity of the majority your investors ranges from, say, $50,000 to $250,000, then market this range as your niche. Be honest with your referral network as to your sweet spot. Besides, a guy that needs a $50K loan will not be well served by a broker who regularly funds million dollar loans. Build your book of business by starting out small, creating volume, then working your way up to larger loans. You can earn more in fees by doing
Realty411Guide.com

almost every day. When a call comes in for a loan thats outside of our area, expertise or capacity, we will refer that caller to one or more brokers from our database of reputable private loan originators. Brokering, in most cases, is a waste of your focus and time. Especially if the lead is coming from another broker. You do not want to be in the middle of a daisy chain. Daisy chain deals mostly fail because the borrower does not get well served. The reason they fail is that there is no way for every agent to get paid without over-charging the borrower. The universe will reward you if you selflessly refer to other brokers those leads which dont fit your niche. Because of the literally hundreds of leads we have referred to other lenders over the past several years, the goodwill it created has resulted in referrals coming back to us daily from people to whom we selflessly referred business months or even years ago. COAChING, MeNtORING & CONsULtING. The best investments you can make are in yourself and your business. Success and leadership coaching are an important part of my life. The books you read, the seminars you attend and the videos you watch will help you to master the disciplines you need in order to succeed in a world full of distractions and naysayers. Attend industry conferences and seek out those who have achieved success in this business and follow their advice. Hire an industry professional to review your practices and help you achieve compliance with state and federal regulations. Conduct this business properly, and soon you will have a steady stream of new leads as you grow your local reputation for performance and thoroughness. For more information about Mark Hanf, please visit: www.pacificprivatemoney.com

Image: Alex Millos / 123RF.com

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The Godfather of Hard Money, pg. 55

Thats where the market is going, said Rosen, and thats what I specialize in, helping investors create real estate funds. Rosen said hes seeing more and more investors deploy capital utilizing different types of retirement accounts, such as self-directed IRAs, and start (or join) these funds to enjoy better returns and increased security; theres little not to like. At the end of the day, the borrower gets to borrow money, said Rosen. The investors in the fund get a good dividend yield, secured by a good position on prime real estate. The hard money lender gets the origination points, the arbitrage spread -- the difference between what you pay your investors and what you charge your borrowers -- and fees for management and servicing of the fund. In a perfect world, everybody walks away happy. And Rosen will continue to spread the message: shifting at least some of your investments away from the equities market and into the real estate market by becoming a hard money lender can increase returns and, done correctly, make your investment more secure. And its just the right time for it, he said. Im a big advocate for the private lending sector in this economy, said Rosen. I think it produces jobs, it produces commerce, it puts people to work. It does a lot of good things. For more information about Rosen and hard money lending opportunities, visit the website: www.pitbullconference.com

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Weve always felt that the most durable relationships are built through education, mentioned Mehra. Since MOR has considerable professional relationships with their borrowers, it brings perhaps an unexpected benefit: fewer defaults. Mehra and Morsi both feel strongly to not be viewed as a corporation, but as apart of a business network working conjunctively to meet each others needs.

Out of 360-plus transactions that theyve written, only two notices of default have occurred. One of MOR Financials core principals centers on the belief of education and the conventional techniques of equity partnership arrangement, mainly structured for borrowers who are just starting out. You can literally walk into a deal with no cash out of your pocket, said Morsi. Well provide the investors willing to bring capital to close and supply the rehab funds. All you need to have is a great asset and an ability to manage a property; the financing side well take care of. The program has allowed many of MOR Financials clients to evolve. With their eminent skill and market presence, theyve won over the masses. Clients effortlessly transform from wholesaling a deal to doing their first flip with MOR. Its giving those beginners an opportunity that cannot be captured elsewhere. One client is on her third loan with the firm. For more information about MOR Financial and their upcoming MORSYENRGY event in February, visit the website: wwwMORFinancial.com

DALLAS-FORT WORTH JANUARY 25th-26th

AMERICAS PREMIER REAL ESTATE EXPO

4 OPPORTUNITY 4 NETWORKING 4 EDUCATION 4 DEALS

THE REI EXPO has quickly grown to become Americas new premier real estate networking and educational gathering. With incredible success and an over-whelming demand for more, the REI Expo has now gone national, from coast to coast. We closed out the year in Anaheim with record numbers of investors and look to build upon that success in 2014. On January 25th & 26th, 2014 we are making our way back to the Dallas-Fort Worth Metroplex for our 4th Annual REI Expo.

Join over 1,000 investors from around the nation to hear from industry experts and leaders. Choose from over 50 classes, then network and build your business in the largest Real Estate Investor tradeshow in the nation.

THESE SPONSORS & MORE WILL BE AT THE EXPO:

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There was a lot of great people here, Black & White its a fantastic opportunity to network, meet investors, find deals, a myriad of vendors...& just awesome resources. Shane E.

It was great. Not a lot of hard sales; with the books & stuff like that. We are fairly seasoned investors & got a lot of ideas we will put them into use. Emily

Americas Buy to Rent Lender

The event was awesome. Well planned. Black & White The speakers were well informed, very educational. I highly advise people to come next year.

Finance Patty L.

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Dallas-Fort Worth January 25-26 at the Gaylord Texan Resort & Convention Center

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Builds Her California DREAM TEAM

H
aving recently returned to Southern California this summer, Lisa Hoegler is still pinching herself every day. After 15 years in the Southeast, her excitement at being back home again is still palpable. Yet the real reason this accomplished woman is grinning from ear-to-ear is because, at 43, she has recently retired from a career as a corporate finance executive and is now a full-time real estate investor and serving as Executive Director of the newly-launched LA South Real Estate Investors Association (REIA). According to Ms. Hoegler, she is finally living her dream. Hoeglers escape from Corporate America did not happen overnight. If fact, it was not even what she set out to do when she began volunteering nights and weekends with a local Habitat for Humanity affiliate in 2000. New to Atlanta at the time, Ms. Hoegler says she got involved as a way of meeting people outside of her day job. Yet nearly four years and 4,000 volunteer hours later, including a term as affiliate President, she had learned the nuts and bolts of real estate development and received a crash course in running a small business. Hoegler had been bitten by the entrepreneurial bug. When a job transfer relocated her to Charlotte, NC, Ms. Hoegler transitioned her real estate career from non-profit to forprofit. The rest is history. Though she continued to scale the corporate ladder of Fortune 500 companies over the next 10 years, Hoegler never stopped moonlighting as an active real estate investor. Now, nearly 150 residential transactions later, there is no doubt why this hard-working woman has been a success. Just as some fans will gush about baseball, Hoegler spiritedly discusses her work as an investor. Its clear that for her, real estate is more than just work: its an absolute passion.She sums it up by saying, Even my worst day in

Lisa Hoegler

Image: C. Valle / 123RF.com

real estate was better than my best day in Corporate America.. And she means it. For all of her successes, Ms. Hoegler has not forgotten how it all started. Though she credits finding her love for real estate during her Habitat experience, she undoubtedly credits Metrolina REIA in Charlotte for making her, as she calls it, a player in the sport of investing. By networking with other investors and vendors at the Metrolina REIA, Hoegler was able to quickly get the right education, learn the rules of the game, and start hitting home runs with her fledgling rehab business. Whether you invest by yourself or not, smart investors know this is a team sport. Your main goal is to build your team with the best players (tradespeople, bankers, fellow investors, etc) and coaches you can find. Your team is often the difference between a deal turning into a Win or a Loss., Hoegler proclaims. But networking with other investors means more than just doing deals to Hoegler. For her, it is about being part of a community where likeminded people come together to support and encourage each other during the highs and the lows. For me, the last 10 years have felt like an investing rollercoaster at times. Hoegler explains, When I got started in this business, I underestimated how difficult that can be emotionally. As a single person, with family and friends that didnt fully embrace her same enthusiasm for real estate, Hoegler attributes her perseverance in this sport to the camaraderie and sound business advice she received from fellow REIA members, or fans as she calls them. Originally from Orange County, Ms. Hoegler has dreamed of returning to Southern California since leaving to pursue her MBA at the University of North Carolina in 1998. Hoeglers retirement from Corporate America offered perfect timing to turn that dream into reality. This past July she settled in the Los Angeles area and, according to Hoegler, Ive been smiling ever since.. When asked what she loves about being back home, Hoegler enthusiastically responds, Everythingeven the traffic!. Her excitement is about more than low
Continued on pg. 70
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Multifamily Properties:
Should It Be in Your Future?
There is also generally an efficiency of scale for maintenance and other expenses, and with good management, expenses are easier and more efficient to control. The advantage of scale best manifests itself when the monthly income is great enough to afford full-time, on-site management and maintenance. For non-high end metro areas this is usually about a $2.5M property or higher. With a typical 60-70% loan this is a

By Tom K. Wilson

ne of the most common questions I get is, which are better investments, multifamily properties (apartments) or single-family homes? My answer is, both, but not multifamily without experienced or qualified and experienced partners. A multifamily property is defined as 5 units or greater, and single-family homes, duplexes, triplexes, and four-plexes are referred to as 1-4s. For someone with a goal of building a medium to large real estate portfolio, I generally recommend considering the inclusion of a commercial or multifamily property with one caveat: dont start by yourself and dont put all of your real estate working capital into one large investment. After purchasing and selling over 2,000 units and 12 multifamily properties over 37 years, my experience is that the best investment property I ever owned was a multifamily property and the worst investment property I ever owned was a multifamily property. These properties have ranged from 10 units for $400K to 176 units for $10M. Multifamily properties offer higher potential reward along with higher risks. On the surface, an apartment building seems to be nothing more than many units, like single-family detached homes, but in one address, however, their proper management is a specialty. There are many more variables and expenses than in 1-4s including utilities, landscaping, contract maintenance, on site maintenance, office management, tenant profile, advertising, lender & government inspections and requirements, and more. So why are the largest investors attracted to them? For one factor, the rent ratios are usually higher and, therefore, the potential Net Operating Income (NOI) and the cash-on-cash return can be higher. In the multifamily world, rent ratios are represented as the GRM (gross rent multiplier): the property price divided by the annual gross income, the lower the better.

zation, and lower LTVs. For investors who are tapped out at 10 loans for 1-4 residential properties and cant get more loans because of Fannie Mae loan quantity restrictions, a multifamily purchase has the advantage of not being forbidden just because you have 10 or more loans on 1-4s. For an investor who would like to own a multifamily product, but who does not

PROS Potential Higher Cash Flow

Avoids Current 4-10 Loan Restriction

CONS Higher Risk More Due Diligence More Employees & Supervision More Eggs in One Address

PROS Lower Risk More Liquid Simpler & More Predictable Higher Appreciation Simpler, Cheaper Loans CONS Lower Cash Flow More Difficult to Manage Restricted to 10 Loans

stiff barrier to entry that may best be solved by partnering with other experienced investors. And then there is the issue of the loan. In these post crash years, getting a government-backed loan such as from Fannie Mae is virtually impossible in todays tight money market without current or significant past multifamily ownership experience. Regional banks and private lenders may sometimes provide loans at the cost of higher rates, shorter terms and amortiPAGE 66 2014

have the experience or local residency that the lender wants, one can work with a syndicator who can connect you with an investor or investors who can qualify for the loan, reduce your risk and exposure, provide the expertise needed to evaluate a deal, and to manage the property for maximum return on investment. Many investors are drawn to small multifamily Tweeners (5-50 units) because it is a lower entry price. However, the problems include:
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INVEST WITH CONFIDENCE INVEST WITH CONFIDENCE

I M M E D I AT E C A S H F LOW I M M E D I AT E C A S H F LOW D D
PROFILE OF YOUR FUTURE PORTFOLIO PROFILE OF YOUR FUTURE PORTFOLIO
Highest Cash Flow Highest Cash Flow Risk Properties & Cities Lowest Lowest Risk Properties & Cities Immediate Equity Immediate Equity Quality Newer Brick Homes and Stable Neighborhoods Turnkey Quality Brick HomesLeased, and Stable Neighborhoods Newer Clear Title, Rehabbed, Managed Home Turnkey Clear Title, Rehabbed, Leased, Managed Warranty

Loans are generally more difficult to obtain Loan terms are not as good Price per unit is higher Banks prefer local borrowers Properties are generally older The economics cannot justify full time on site management and maintenance And, it is usually difficult to manage effectively. Stories of offsite management showing up after a week or two at small multifams only to discover that drug dealers have run off decent tenants are common stories. Also, a single vacancy in a small mulitfam has a greater percentage impact on cash flow than in a larger investment. Again, one valuable way to mitigate these factors is to purchase a larger product with partners through syndication. Due diligence is much more critical than with single-family rentals but there are also more resources available to get a lot of the general information because there are a lot of marketing firms that support the REIT and institutional investors who mostly purchase large multifamily and commercial properties. A multifamily sellers proforma (projections of the potential income and expenses in a perfect world) should for the most part be disregarded. True expenses are seldom less than 50-60% of gross income, otherwise be suspect. And study local de-

mographics carefully. Visit the prospective property unannounced, walk it, and then sit in your vehicle to observe who is living on and visiting the property. Take note of the time of day and night. Yes, evening observations are the most enlightening. Go to the local schools, parks, and retail stores and see whom your prospective tenants and demographics are. Do you feel at risk parked so near your potential property, or would you feel comfortable joining the tenants for a barbeque? Please do not rely on website data about the neighborhood. There are a lot of variances in a one-mile radius. Lastly, my post data analysis is always punctuated with the satellite view question, would I be comfortable with my daughter living here? In addition to syndications an alternate way to have many of the benefits of a multifam with less money down, an achievable loan, and much less risk is with a portfolio of single-family properties. Throughout my investment career, I have always also owned many 1-4s. This approach spreads your risks by building a mutual fund of properties in various locations. In addition to having a variation of rent, price appreciations, and occupancies that tend to converge on the averages for a region, single-family homes are more liquid, have less expenses, are less complex to manage, and tend to appreciate

more because they are based on owner occupant demand rather than on income. In the next decade, most economists project a higher upward trend in occupancies and rent for single-family homes and for multifams. The most important ingredient is to select that right team of professional resources. How much experience and knowledge do they have in the region and product of interest? Are they invested in the products themselves? If you are considering partnering to own multifamily properties, do they have experience with syndications and access to experienced and qualified investors, lenders and property management? When you invest in real estate, dont start with the deal. An honest assessment of the amount you have available to invest, your risk tolerance, your experience, and your long term goals, along with the right professional team, will lead you to the right deal, or deals: a multifamily investment or a portfolio of cash-flowing single-family properties. I choose both. Tom Wilson is a 37-year real estate veteran who has executed over $100M and 2000 units of real estate investments. Wilson is also a weekly host of the Real Estate 360 Radio program on KDOW 1220 am every Wednesday at 2 pm. Listen to his podcasts on iTunes or his website: www.tomwilsonproperties.com

country. sophisticated methodology, the best investment iscover the Using lowest-risk, highest-quality residential investment properties in theproperties a country. Using sophisticated methodology, the best investment properties are to secure carefully selected by an experienced investor and rehabbed beautifully carefully selected by ancompetent experienced investor and rehabbed beautifully to secure the ow, you best tenants. With property management, and instant cash best tenants. With competent property management, and instant cash ow, your investment pays worry-free dividends from day one. investment pays worry-free dividends from day one.

iscover the lowest-risk, highest-quality residential investment properties in t

Typical Property Price $139,000 Rent $1,395 Year Built 2001 Price: $110,000, fully renovated, built 2005 Currently Rented 4 Bed for 2.5$1,195 Baths e: $110,000, fully renovated, built 2005 ently Rented for $1,195 Mention REI Voice Magazine and receive one-year free Mention Realty411 or reWEALTH and receive 1 of year premium home warrantywith with your first purchase. property management your rst purchase.

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408-867-1867
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Mention REI Voice Magazine and receive one-year of free Realty411Guide.com purchase. PAGE 67 2014 property management with your rst

TOM WILSON, Presiden

408-867-1867

reWEALTHmag.com TomKWilson@earthlink.net TomWilsonProperties.com

RetIRe WeALthY

strategy

with IRA Investing

By Stephanie B. Mojica

in popularity, but experts warn that it is important to only get into such an investment with proper education and professional guidance.

elf-directed individual retirement accounts or IRAs are rapidly growing

uDirect rt in the ucation. dian to and edccounts g a self derstand ustodian ss. This st. ts, projto grow real esprecious e of the

you are youre e elses e Comareness careful, able. So ly helpal links

where to tentions qualifies This is wise to ver your nies are

aaren Hall, owner of uDirect IRA Services in Orange County, Calif., says even after more than two decades in the financial industry and four years of running her company she too must continually stay on top of her investment education particularly regarding Internal Revenue Service guidelines for retirement accounts. Self-directed IRAs allow people to invest their retirement funds into a variety of options outside of the traditional stock market, including real estate, land, and private notes. Financial literacy is not taught in schools, but our future depends on understanding it, Hall says. Only real estate experience, Kaaren Hall has asabout 4 percent of U.S. investors have a self-directed IRA. Why? Because sisted her nationwide base of clients for many years. most investors and many advisors simply arent aware of it. She is also president founder of uDi - the potential financial power of selfBut even thoseand who are aware of rect IRA Services LLC, and speaks at many directed IRAs often doevents not fully comprehend is the IRS guidelines of real estate club meetings and to edu according to Hall. cate prohibited the public ontransactions, how to use self-directed Youre notis allowed to have any personal benefit from your IRA prior to IRA accounts. She a sought after expert in the field and has assisted retirement, Hall says. national real estate experts with their own deal structur - investors is that they can use the A common misconception among ing and accounts. The service and fees are self-directed IRA funds purchase the aspects to consider when to choosing a real estate or other property from themselves or close relatives such as a spouse, a child, a grandchild, custodian. Having access to the experience a parent, ais grandparent andwith any this spouses of such relatives. These and knowledge the added value company. transactions are not permitted under self-directed IRAs, according to After many years of being a busy Hall. However, anHall investor could purchase property from a more distant mother of two and traveling throughout the relative such as a sibling, a cousin, a niece, or an uncle. state of California, life has gotten much Make you know easier now that sure her children are what older. youre This doing, Hall says. Were here to help people soand they understand the- twists and turns as much as possible. allots for more time expansion on edu cating the public harnessing the control The term on self-directed in itself misleads some people because it is the
of their own retirement futures. There are many employees who Realty411Guide.com are no longer at their original job locations and are looking to rollover their 401(k). Some
PAGE 68 2014

IRA doing the investing, Hall adds. So thats confusing because they get into trouble by maybe signing a purchase contract (in their own name), she says. Your IRA cant buy an asset that you own. Consequently, people should wait until they actually open an account with a qualified custodian before funding it and making transactions, Hall says. Generally, a custodian rather than the actual investor should sign purchase contracts relevant to self-directed IRAs. While representatives of companies such as uDirect IRA do not give actual investment advice due to potential legal liability, they can help people follow ever-changing IRS guidelines. Hall, a former mortgage broker whose work history includes Bank of American and Indymac Bank, has educated tens of thousands of investors into deciding whether self-directed IRAs are right for them. She and her associates have directly worked with thousands of clients. To learn more about self-directed IRAs, call 866447-6598 or visit www.udirectira.com

reWEALTHmag.com

he town of Bethel is one of those sleepy, quintessentially New England villages nestled into the green mountains of Vermont; a state known as much for its fine craftsmanship as its sprawling ski resorts. John Gifford chats with me from his familys 200-year old Bethel farm; it is still in operation to this day. Weve got over 150 animals here, he tells me, and a covered bridge. Its clear; John Gifford is a man who is proud of the care he puts into his work, from his familys ancestral estate to his numerous investment properties available around the country. At his company First 100 Homes, Gifford focuses on acquiring and repairing desirable, turnkey properties in high-performing American markets. Gifford is passionate about creating opportunities for long-term wealth and worry-free returns for investors. What makes First100Homes.

TUrN-KeY&Ready
com, and Gifford, unique in the turnkey provider market? First 100 Homes offers investors a complete product, right down to lists of preferred property managers. Before Steve Jobs hijacked the consumer computer market, if you wanted to buy a computer, you had to buy all the different components. You had to get the monitor, the keyboard, the hard drive, the case and of course, the software. Then you had to install it. Buying a computer was a complicated process. Jobs had a different vision; buying a personal computer should be as easy as buying a refrigerator. No tinkering needed, no need to buy several components, no repairs. First 100 Homes offers their buyers a complete package. For example, when you buy a refrigerator, it works. When you buy an Apple computer, it works. When you buy a First 100 Homes property, it
By Hanna Ash

simply works; no extensive rehabbing of interiors, dealing with unreliable property managers or trying to rent in a poor market. Its ready to do what you want it to: bring in instant cash flow. Like Jobs, Gifford believes in producing streamlined, quality products, or rather, properties that gives buyers the returns they want without hassle. Many of his properties even come with a one-year bumper-to-bumper warranty. First 100 Homes is able to provide investors good returns with little to no repairs because of how they do business. Taking advantage of the current market, Gifford states, ...never before have there been so many REO rent-ready properties
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available. By buying condos and homes en masse, the First 100 Homes team instantly gentrifies a neighborhood or development; other investors, Gifford says, soon follow suit. We love waterfront property, Gifford tells me, because theyre not making any more. Hes got a good point and I laugh. First 100 Homes has a keen eye for where to buy and when. What are some of the metrics that Gifford considers before zeroing in on a market? Location. Demand. Transportation, Gifford lists out. He says the company focuses on buying and selling properties that have the features buyers and renters want. Though they have many properties in the Las Vegas market, Gifford is not a betting man when it comes to real estate. Theyve zeroed in on the Las Vegas for many reasons. There are many upscale housing units available on the cheap and further, the city is rich in students and gainfully employed hospitality professionals who always usually want to rent, not buy.While First 100 Homes has taken over Las Vegas, they are now focusing on Florida and North Carolina. Wilmington, North Carolina, for example, is an appealing market for First 100 Homes as it has it all; hospitals, universities, waterfront property and a transient population. Half-backs, as Gifford calls them, are a big part of the population there. Half-backs are defined as renters who winter in Florida and come half-back to summer in North Carolina. Sustainability matters to the First100Homes.com team. Gifford selects his properties like a seasoned military general who knows his soldiers and his battlegrounds well. First 100 Homes has an airtight strategy that works. Through purchasing HOA liens, the properties Gifford selects are the kinds of properties renters want to rent and buyers want to buy. Most of the properties they deal with were built after 1990 and have very little wear and tear; they
Lisa Hoegler Builds Her California Dream Team, pg. 65

often come fully applianced right down to the washer and dryer. Our properties are largely in gated communities, Gifford explains. Gated communities are inherently attractive to the kinds of renters investors want and, for investors, gated properties are generally less of a hassle, property owners in gated communities dont have to deal with nuisances such as graffiti and vandalism, for one. The opportunity to buy properties in such good condition, Gifford says, is the unique result of the 2008 real estate crisis, it never happened in the REO business before. Now is the time to buy property, Gifford declares. He continues, Warren Buffet has named single family homes as the best new asset class for investors. As First 100 Homes plans to buy and sell thousands of homes in the next year, investors may be interested in buying a few from them. Whether an investor wants to flip or hold, First 100 Homes makes things easy. For new investors, a First 100 Homes property is an opportunity to get into investment quickly and painlessly; for seasoned investors, high returns and a discount as much as 25% over other properties in a given market are a big draw. For investors interested in learning more about First 100 Homes, their website has everything from profit calculators to current listings. The team typically gives one monthly-guided tour of their available properties in Las Vegas; it is not uncommon for an investor to see as many as 12 properties in one day. First 100 Homes forges long-lasting relationships with their clients, Gifford tells me, a typical client buys four properties with us a year. Like Jobs did with Apple Computer, Gifford has, in many ways, simplified and streamlined real estate investment. As do all Vermont craftsmen, Gifford takes pride in his work. His investment deals are well crafted. the timely and relevant real estate topics, Hoegler hopes that meeting features like app-of-the-month or the LA South Tech Squad, a sub-group dedicated to staying current on new real estaterelated software and technologies, will complement the traditional REIA education. A life-long learner herself, Hoegler admits that education will only get you so far. Relating again to sports she says, Book learning is the equivalent of running drills, hitting the gym, and memorizing the plays. Its the foundation of your skills, but not much more. According to Hoegler, investors need the support of great coaches, trainers, teammates, and cheerleaders to get in the game and score some points. Whether its an extra set of eyes to glance at a contract, walk a property, or fund a deal, the resources are there to help - if you know who they are. Building your own investing dream team can begin by networking at groups like LA South REIA. It has been a mere 3 months since Hoegler launched the LA South REIA, but Ms. Hoegler is already focused on 2014. Though she has successfully rolled out exclusive National REIA member discounts including a 2% rebate at The Home Depot and a substantial discount program through SherwinWilliams, Hoegler is most excited about announcing her upcoming involvement in advocating for investor rights and supporting proinvestor legislation in California; a role this experienced coach should shine at. And she is only getting started Lisa Hoegler invites new and veteran investors to join her the second Tuesday of each month in Torrance at the LA South REIA Main Event meeting. You can find out more information by emailing LisaHoegler@LASouthREIA.com or by visiting www. LASouthREI.com. Guests are welcome.
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humidity and an ocean view, though. These days, in addition to investing, this multi-faceted business woman has just launched the newest chapter of the National Real Estate Investors Association right here in the South Bay, called the LA South REIA. After years of experience in this business, like any good coach, Ms. Hoegler is eager to share what shes learned to help others be successful too. I cant think of a better way to show appreciation to all of the supporters, mentors, colleagues, and friends who have helped me get where I am today, than to pay it forward. She seems to be on her way. hen asked what key advice she offers to the members of LA South REIA (or All-Stars as she calls them), Ms. Hoegler recommends that investors think of themselves as athletes, and as with any sport, they should dedicate hours to train for success. She stresses that long-term wealth building through real estate or any other type of investing should not be perceived as a get-rich-quick scheme and reminds her group that no one makes it to the pros overnight. Beyond that, she says the rest comes down to education and networking, which coincidentally, is the mission of the LA South REIA. Though Hoegler is the first to acknowledge that quality real estate education is both more available and accessible than it was when she began, she believes that education at the REIA goes beyond the nuts-and-bolts of a singular strategy to connecting-the-dots needed for a turnkey business. In her experience, this is the biggest hurdle that investors fail to overcome. While her goal is still to feature speakers sharing
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By Randy Hughes aka Mr. Land Trust

ecently I read an article by an attorney telling his readers not to use a Land Trust. He recommended titling your investment property in a Limited Liability Company. His reasoning was that Land Trusts are only a deterrent to a lawsuit and they do not provide true asset protection. The attorney went on explaining how any lawyer worth his salt would find out you are the beneficiary of a Land Trust as the result of a judgment debtors exam (which is a hearing in a court roomsometimes called a Citation to Discover Assets). The attorney writing this article concluded that you have zero privacy with a Land Trust and if you want privacy you should save the expense of a Land Trust and title your investment real estate directly into an LLC (Nevada or Delaware). After over 40 years in the real estate investment business, I can spot an attorney who understands the law but does not have practical real world experience. I agree that LLCs have better asset protection than a Land Trust, but Land Trusts have far better privacy elements than LLCs. I use LLCs in my business but NOT to hold title to investment property. Lets review the benefits of using a Land Trust. Land Trusts: Are NOT registered anywhere on the planet Do not require a registered agent Pay no franchise taxes Cost nothing to form (you can form them yourself) File no tax returns Require no tax ID number Can be formed in a state other than where the property is located (for terrific privacy and asset protection) Can easily hold each property separately from other properties to keep all investments insulated

Land Trusts vs. Limited Liability Companies

Can have an LLC, Corporation or Personal Property Trust as its beneficiary Experienced real estate investors understand that putting all of your properties into any one entity (be it an LLC, Corporation or a Land Trust) is a nexus for a lawsuit. Remember grandmas advice to not put all your eggs in one basket? It makes logical sense to put each property into its own separate Land Trust and then make the beneficiary of the trust your LLC or Corporation. This yields the best of both worlds from a privacy and asset protection standpoint. Since the Land Trust Agreement is not recorded anywhere no one can find out who the true owner of the trust is without a full blown lawsuitwhich is expensive for your adversary. Furthermore, if the property is in one state, the Land Trust is formed in another state, and the LLC beneficiary is registered in a third state you get a dy-no-mite structure that is not only difficult to unravel but legally expensive to pursue. Most contingency fee lawyers would give up and start looking for another sucker to pursue. Real estate investors are more susceptible to a lawsuit than most other Americans. The general publics perception of a real estate investor is that they do not have any debt on their property, have lots of cash in the bank and tons of positive cash flow. So, even if the investor is upside down on their property debt and suffers monthly negative cash flow they are still at the mercy of the contingency fee lawyer and his/her dead beat client. Keeping property isolated in separate Land Trusts makes logical practical sense to those of us in the trenches every day. A huge benefit to holding title to each property in a separate trust is the ability to finance without affecting the other properties. You can also sell property on an installment contract basis without affecting other properties. If you title multiple properties in one LLC the lender will want to tie up all the assets of the LLC as collateral for the loan on just one property. Take your advice from a streetwise investor with decades of real life experience. Use a Land Trust to hold title to your investment real estateyou will be glad you did! To receive a FREE copy of my booklet 50 Reasons to Use a Land Trust send me an email at: randy@mrlandtrust.net
Image: Denchik / 123RF.com

Learn from THE National Expert on how to use Land Trusts for Privacy, Profits & Asset Protection

FREE Land Trust Webinar at:

wwwLandTrustWebinar.com
or For more information, call Randy Hughes at:

Randy Hughes
Mr. Land Trust 40 Years Experience

LandTrustsMadeSimple.com
PAGE 71 2014 reWEALTHmag.com

For Information, Visit Online:

866-696-7347

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Trusted Hands-Free Real Estate Investing

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Investors can purchase either a fractional interest* or own the investment property with cash or use an investor loan.

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CROWDFUNDING
An Irvine-Based Real Estate Company Offers Insight to

strategy

By Stephanie B. Mojica

he CEO of Southern California-based HomeUnion hopes to turn the business into the Amazon.com of real estate investing. Don Ganguly, an entrepreneur and chief executive with an impressive record of building successful businesses in the technology and financial services markets, stepped into his role as the chief executive behind HomeUnion this October. Ganguly, who earned a MBA in at the prestigious Wharton School of the University of Pennsylvania, serves as a mentor for current Wharton students. HomeUnion was developed alongside three other partners, Ravi, CP and Nani, all of whom have worked together in two previous successful startups. All four entrepreneurs are engineers with graduate degrees. What also unites them is their belief that the current experience of investing in real estate can be dramatically improved. Gangulys business eyes are tuned in to providing the real estate investor a hands- free experience where HomeUnion eases all the pain points of investing in real estate. HomeUnion will provide flexible investment options. Inves-

Don Ganguly

tors can buy the whole asset or a fractional interest via crowdfunding. Crowdfunding allows accredited investors to invest in ready made diversified portfolios., Ganguly explained. HomeUnion will allow people to invest according to their preferences in a secure and trusted manner.. Investors will finally be able to buy the best investment property remotely regardless of location. Investors can use cash, qualify for an investment loan or use funds from their IRAs. Ganguly and others running the company only work with properties that they certify , located in known cash flow zones nationwide. Cash flow zones have excellent rental
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income potential when compared to the price of a single-family home mortgage, a stable job market, and an excellent rental culture., according to Ganguly. Some of the properties which people can add to their general investment or retirement portfolio are located in Chicago, Atlanta, Houston, Jacksonville, Cleveland, Indianapolis, Austin, and San Antonio. We are making single-family real estate investment an institutional play where investors can buy this as they would any other stock market instrument. Our platform brings fully vetted investments. This is different from companies that sell opportunistic deals of the month and merely connect people with sellers and collect their money. Ganguly said. Though there are of course never any guarantees of absolute success, representatives with the HomeUnion firm utilize proprietary methods of selecting the best investment locations. Additionally, company associates work closely with clients to ensure they understand the ins and outs ofthe current investment and rental markets. Full management service, including collection of rents and upkeep of homes and help with tax documents is offered to all clients. HomeUnion is the only company providing a fully managed investment experience in more than 10 investment locations in the U.S. I recently invested in real estate using a self-directed IRA, said P.K. Neelu. I had no idea how to go about this, but thanks to HomeUnion, I was able to navigate the various steps with ease. They are building the real state investment platform of the future. To learn more about investing in single-family homes through crowdfunding or other types of means, call HomeUnion at 866732-3220 or visit http://www.homeunionservices.com
reWEALTHmag.com

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FlIP FlOP?
or
Meet Reality TVs favorite Real Estate Couple,

Tarek & Christina El Moussa

by Stephanie B. Mojica

he hit reality show Flip or Flop has not only changed Tarek El Moussas life, it literally saved it. 2013 was a life-changing year, El Moussa said. He and his wife Christina are prolific real estate flippers and host a related reality show on HGTV. One of his viewers a registered nurse noticed a lump on El Moussas neck, which turned out to be thyroid cancer. Fortunately it did not spread beyond his neck and he considers himself to be well on the road to recovery. The worst part was the radioactive iodine treatment where I was confined away from my family, El Moussa said. Today I feel better, my energy is lower, but I wont let that slow me down. I will keep chasing my dreams. At age 32, El Moussa never expected to host a popular television show and battle cancer. In fact, their once fruitful financial yields from their investing endeavors began drying up with the economic downturn, which began in 2008. The couple was forced to significantly downscale their lifestyle, trading in a $6,000 a month mortgage for a $700 a month apartment. Being on TV is the last thing we ever imagined doing in our lives, he said. I always tried new ways to grow our

>

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business and one night I said Honey, I am going to get us a TV show, kind of as a joke. She laughed and told me to go to bed. I looked online and randomly found a casting and here we are three and a half years later. It was the biggest long shot in history and somehow it worked out. Those brief but still vivid days of scrimping and saving are over, as the El Moussa family has moved into a luxurious Orange County home due to their business of flipping houses along with their television show. The best thing that has come from this experience is our family creating something that years from now we can go back and watch. It is so exciting to watch our baby girl on TV and see how much she grows and changes throughout the season. Basically it is watching our family and business grow and develop and we are able to go back and watch the progression. It is also amazing to spend so much time with my wonderful wife.

I study real estate and pricing all day every day and in order to become successful at flipping you must commit to learning every aspect of the business and understand failure is the path to success.
El Moussa wants newcomers to the art of flipping houses to understand what exactly they are getting into before they start purchasing properties in hopes of making a hefty profit. It is not as easy as it looks. Learn and study a lot of real estate before jumping in, he said. You make your money when you buy, not when you sell. The biggest piece of advice El Moussa offers to people at all levels of real estate investment is to never give up. The truth is everyone will fail and fail and fail until it happens and you get that win, he said. Once you get

Tarek and Christina El Moussa

that one win, you can do it over and over again. With or without the television cameras rolling, flipping houses is sort of like a legal high for El Moussa. I enjoy the chase of the properties, the rush you get when you find them, the design and transformation, and the profit at the end, he said. There are many stressful steps in between with a lot of gambling but this is the best way I can simplify it. I study real estate and pricing all day every day and in order to become successful at flipping you must commit to learning every aspect of the business and understand failure is the path to success. Theres a saying that behind every successful man theres a strong woman, and that definitely applies to El Moussas life. We are pretty much together 24/7, Christina El Moussa said. We have been together for over 7 years and we are still best friends. He keeps me on my toes and there is never a dull moment with him. It is fun and rewarding to start a business and a TV show together and watch it grow. We both have a lot at stake and we provide a strong support system for each other. Plus, we both know our own strengths and weaknesses and they play well together.
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strategy

WILLIaMS & WILLIaMS

By Pam McKissick

mall and mid-tier investors are not only an important part of the real estate marketplace, but theyre the backbone of the free-enterprise system. Theyre sourcing, buying, renovating, managing, renting, and selling the assets they purchase on a daily basis. Their emphasis on speed, and their streamlined approach to management, facilitates rapid change in cities and towns. Their fixer-uppers may end up as a young couples starter home or older couples retirement condo. Their commercial assets become coffeehouses and dance studios, lofts and bistros, bringing back deserted downtowns and revitalizing neighborhoods. The mid-level investor has a turn-ofthe-century work ethic that should be applauded and, more importantly, encouraged. A late-night-oil entrepreneur, he does most of the work himselfsearching dozens of websites to evaluate hundreds of homes in a single evening, running the numbers, creating his own analytic models, evaluating past-performance of similar assets. For the most part, its entirely his money, or his familys money, at risk. No wonder hes adamant about low purchase prices, quick turns, and big ROI. In talking to many small investors with portfolios ranging from ten to a hundred assets, Ive asked them how they staff to keep so many projects going at one time. Almost to the man (yes, its mostly men) they laugh and confide that their wives and kids have resigned from their work force, refusing to go

into one more boarded-up building to trash out, air out, and fix up. Plumbing and electrical, paint and carpet, once interesting and challenging, became a grind. After awhile my wife and kids got tired of it. Its hard work! With mutiny as close as their living room, why are these investors at their desks at three a.m. roaming through websites looking for more properties to buy and sell? Their mantra, Im gonna retire rich at fifty. But when I rang a few investors whod reached age fifty, they werent retiring at all! They were moving up to bigger buildings or a new strategy. Investing was in their blood. They got excited just talking about it. They were going to retire but not just yet! They were addictedmainlining multi-family, high on high-rise. Cutting the deal, making the place shine on a dime, and realizing a big profit is a heady experience when it all hinges on their own vision and tenacity. When I asked what would make their lives better, what could a company like ours do for them, they said, give us a first lookgive us somebody to talk to who doesnt waste our time, give us a chance to make an offer before it goes to marketand if a deal falls out, call us first. Their requests became the genesis of our Investor Market Desk.

The Investor Market Desk revolves around a simple three-step process: 1) investors call our market desk and ask to be placed on our proprietary investor list. We dont have a phone bank full of people, just a couple of smart market makers who will very quickly know them by name. 2) We determine what theyre looking for: commercial, residential, multi-family, and in what value rangethree hundred thousand, three million, thirty millionand whether theyre a national, regional, or local playeror maybe just buying within a fifty-mile radius of where they live. 3) Our market rep will give them advance notice of investment properties heading for auction; and after the auction, if for some reason the property didnt close, the investors will get a call saying a particular asset is available.

>

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reWEALTHmag.com

Image: Sergign / 123RF.com

Williams & Williams Auction lists inventory daily, markets immediately, sells at auction every thirty days, and closes in another thirty. We see a lot of real estate, and we know a lot of small and mid-sized investors. We are effective at pinpointing which deals are going to sell traditionally, which will hit reserve at auction, and which will go to investor after-market. While we pride ourselves on strong high bids at auction and a stellar closing rate, not every deal can receive seller confirmation. Those assets are immediately transferred to our Investor Market Desk, where were heads up and hands-on, contacting investors with the right opportunity. Whether an investor is buying a fifty-million-dollar commercial portfolio or a two-hundred-thousand-dollar duplex, our Investor Market rep finds out what they need or helps them sell what they have, to free up cash for their next deal. At the end of the day, I think the small and mid-sized investors know that we know them. We understand who they are and what they want. Every day, on every deal, we have them in mind. In todays real estate world everyone has to move fast, be smart, and never pass up an opportunity. And why not help these mid-tier investors who in turn help brighten the landscapecleaning up neighborhoods and revitalizing towns. Pam McKissick is co-owner and CEO of Williams & Williams, online at: www.williamsauction.com Williams and Williams is one of the largest, most cutting edge and diverse auction firms in the United States. WWM is the parent company to Williams & Williams Worldwide Real Estate Auction, Auction Network and Williams Worldwide Real Estate Brokerage. A seasoned business executive, author and radio show host, McKissick is known for her charismatic personality and uncanny ability to transform traditional thinking and chart new paths toward personal and professional growth.
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10
By Marco Santerrelli, CEO of Norada Real Estate Investments Setting clear and specific investment goals becomes your road map and action plan to becoming financially independent. You are statistically far more likely to achieve financial independence by writing down specific and detailed goals than not doing anything at all. Your goals can include the number of properties you need to acquire each year, the annual cash-flow they generate, the type of property, and the location of each. You may also want to set parameters on the rates of return required.
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Rules of SUccESSfUL Real Estate Investing

market, and times when it does not. Only invest in markets when it makes sense to do so, not because you live there or you bought property there before. Theres an element of timing and you dont want to buck the trend. 6. Take a Top-Down Approach Always start by selecting the best markets that align with your investment goals. Most investors start by analyzing properties with little to no regard of its location. This can be a big mistake if you dont consider the investment in light of the market and neighborhood its in. The best approach is to first choose your city or town based on the health of its housing market and local economy (unemployment, job growth, population growth, etc.). From there you would narrow things down to the best neighborhoods (amenities, schools, crime, renter demand, etc.). Finally, you would look for the best deals within those neighborhoods. 7. Diversify Across Markets Focus on one market at a time, accumulating from 3 to 5 income properties per market. Once youve added those 3 to 5 properties to your portfolio, you would diversify into another prudent market that is geographically different than the previous one. Typically that means focusing on another state. One of the underlying reasons for diversification within the same asset class (real estate), is to have your assets spread across different economic centers. Every real estate market is local and each housing market moves independently from one another.
Continued on pg. 91
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I came up with the following rules of successful real estate investing over my many years of successes and failures. These are the same rules I follow today and share with our clients at Norada Real Estate Investments. 1. Educate Yourself Knowledge is the new currency. Without it you are doomed to follow other peoples advice without knowing if its good or bad. Knowledge will also help take you from being a good investor to becoming a great investor, and that knowledge will help provide a passive stream of income for you or your family. 2. Set Investment Goals A goal is different from a wish; you may wish to be rich, but that doesnt mean youve ever taken steps to make your wish come true. and its usually 6 to 9 months after the fact when you find out. Dont chase after appreciation. Only invest in prudent value plays where the numbers make sense from the beginning. 4. Invest for Cash-Flow With few rare exceptions, always buy investment property with a positive cashflow. The higher, the better. Your cashon-cash return is directly related to the before-tax cash-flow from your property. Cash-flow is the glue that keeps your investment together. Your equity will grow over time (through appreciation and loan amortization), while the cash-flow covers the operating expenses and debt service on your property. 5. Be Market Agnostic The United States is a very large country made up of hundreds of local real estate markets. Each market moves up and down independently of one another due to many local factors. As such, you should recognize that there are times when it makes sense to invest in a particular
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3. Never Speculate Always invest with a long-term perspective in mind. Never speculate on quick short-term gains in appreciation, even in a heated market experiencing double-digit gains. You never know when a market will peak

Taking Title by Garrett Sutton, Esq.

a policy you wont buy the property. It is that simple. Follow their lead. Transferring Title The specter of title insurance affects the way you will transfer title to property. There are two ways to transfer title: 1. A Grant Deed. This deed (or Warranty Deed) implies or warrants that: a. The Grantor (the person granting the property) has not transferred the property before, and that absolute ownership (free and clear title) is conveyed. b. Unless the Grantee (the person receiving the property) agrees otherwise, the property is free from any liens or encumbrances against it. c. Any after-acquired title (ownership that goes to a Grantor later) is also conveyed to the Grantee. 2. A Quit Claim. This much weaker deed only: a. Transfers whatever present right, title or interest the transferor may have. (If the transferor doesnt have any rights, neither do you.) b. No warranties are made as to any liens or encumbrances. (So if there are undisclosed mortgages against the property its not the transferors problemas it is in a grant deed. Instead, it is now your problem.) c. No after acquired title is transferred. While often advocated by promoters as the easiest means for transfer, the quit claim deed is not your best choice. First, know that in many bank involved REO (real estate owned) transactions the REO lender selling a foreclosed property will only use a Quit Claim deed. Why is this? It is because the lender has no idea what happened on the property prior to foreclosure. During the boom documents were not properly kept or transferred, the banking industrys MERS electronic recording system failed to keep up with it all, and many documents were just plain lost. This is no way to maintain a good chain of title on the nations real estate. It was so bad in
Continued on pg. 86
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Image: sqback / 123RF.com

itle to real estate sounds grand. As you think of titles let your mind wander back again to medieval England when titles such as Baron and Duke meant you were part of the nobility and peerage system. And not coincidentally, if you had such a title you also owned land. As our legal systems evolved, real estate titlethe means by which you owned valuable property rights remained ever so important. Because title conveyed power (and with power came corruption and fraud), a system to accurately record the chain of title developed. Over time you had to defend your title with the proper paperwork. The checking system that evolved means that there are two steps for the transfer of title. The first step is the granting of a deed whereby the grantor transfers the property to the grantee. An investigation of the sequence of deeds to establish an accurate chain of title is then performed. If the grantor actually has clear title,

according to the public records, a policy of title insurance may be issued and the property transferred. (Please note that property can be transferred without title insurance but that most banks wont take the risk in making a loan without it.) A noticeable break in the chain of title means that the buyereven though they believe they are the rightful owner can be subject to the possible claims of others contesting the title. It can also mean that the property is now very difficult to sell, because future potential purchasers dont want any doubts about clear title. Accordingly, title insurance is important. Before insuring you against the risk of future claimants, a title company is going to check the public records to see if there are any troubling gaps in the chain of title. If gaps exist they wont issue a title insurance policy. If they wont issue
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An Industry Leader Discusses His Deals

L
By Hannah Ash arry Goins doesnt know it all. When it comes to real estate, the learning never stops, he tell me. When one of the countrys leading investors pauses for a moment of self-reflection, its worth a listen. You can learn something from everybody you meet, he tells me. Its one of the secrets to his success in real estate; hes always on the hunt for a way to do it better. Just this week, I his wife, its not much different, Pam is a hard money lender too. She also gives of her time generously by leading her churchs food pantry organization. Both altruistic and driven to succeed, it should come as no surprise that hes found a way to marry his two loves together; family and success. Following in suit, Goins has seamlessly merged his love of successful real estate investing and his love of educating into a dream job. He works with a large team of professionals who are all as excited about

From South Carolina, LaRRY GOiNS impacts investors around the nation with his real estate wisdom.

The properties Goins buys and sells arent turn-key, he says, they are what he has dubbed, learn-key.
attended two webinars, he casually remarks. I must admit: Im taken aback. For someone who has been engaged in all aspects of real estate since the 1980s, Larry Goins isnt full of the slam-dunk advice one might expect; instead, his advice is to ask questions and keep an open mind. Thats what he does, he says. He wants to know how he can do better and wants to meet people who can teach him how; he is full of stories of things hes learned this week and this month. For a man who once served as president of the Metrolina REIA and is a mortgage lender, real estate broker, agent and licensed general contractor, one would think he might just want to rest. Mr. Goins, however, is one of those rare breeds who love what they do so much, it doesnt feel like hes working a job. Goinss work is stacking up success after success and helping others find their own successes along the way. Mr. Goins has a motto, People and principles before profits. When hes not working, hes with his family. I ask if they share his interest for real estate. His 17 year old daughter loves equestrianism, he says, and she regularly takes to the ring, riding in shows. Goins also has a son and wife. My 9 year old son is already a hard money lender, he laughs. When it comes to
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real estate as he is. Based in his scenic hometown of Lake Wylie, South Carolina, The Goins Group focuses on education while his Investors Rehab is all about actively buying and selling a lot of real estate. A published author, his first book, Real Estate Day Trading, is available in bookstores everywhere. HUD Homes Half Off, his newest release, is available on Amazon and through his website. In his free time, Goins regularly hosts seminars, webinars and gives interviews as a way to motivate other investors to get serious about their money. Goins real estate blog is full of well-crafted tips for new and seasoned investors. An apprenticeship in real estate investment is the best way to describe what Goins and his team offer students. You cant get a college degree in real estate investing, but, Goins says, you can latch onto someone experienced whom you trust to start learning. He and his team, in many ways, operate like a trade school. There are books to read, active mentors, seminars and real-world investing experience through Investors Rehab. For investors looking to get started or looking for a new edge, The Goins Group aims to serve. Each week, the business advisors Larry trusts to work alongside him in his office, check in with students to touch base, answer questions and provide some motivation. Goins says he too gets
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on the phone and talks to his students whenever necessary. The skills his investors learn, Goins says, can change lives. Real estate is what you make of it, Goins explains, and his programs work for everyone; his clients come from all walks of life. One of his students, Alon, a pediatrician currently living in New York City, is working with Larry to diversify his investments and bring in some extra cash flow. Another client is a former prisoner who was able to change the direction of his life forever. Do your techniques work?, I ask. The proof is in the pudding: the hundreds and hundreds of letters and video testimonials that Goins and his team proudly receive each year say it all. As an active real estate investor, Goins has a simple approach to buying real estate; his philosophy is one that most investors can rally behind, I buy houses. I dont get sold houses. Goins says people often say to him, Wow! Thats a great deal. Whered you find it? Goins explains, I tell them: it wasnt a good deal when I found it. We created the deal. Investors Rehab, the investing arm of his business, attracts all types of investors. Whether its an
Continued on pg. 84
reWEALTHmag.com

Blackstone Unleashes
R
eal estate investors looking for funding in 2014 could find this new lending source and its President one of their best allies On November 15th, 2013 investment giant Blackstone made a major announcement that changes the game for rental property investors, and is likely to create ripples which have the potential to provide a huge boost to the U.S. economy at every level. Former joint head of single family rental finance at Deutsche Bank AG, John Beacham recently joined Blackstone Tactical Opportunities new B2R Finance lending arm as President. B2R has now unleashed several stunning new mortgage finance programs specifically designed to aid small to mid-sized buy and hold real estate investors with loans of $500k to $50M. The Major Pivot Real Estate Entrepreneurs Have Been Begging For In recent years some rental property investors have felt significant pressure from mega funds like Blackstone, which according to Bloomberg has spent over $7B in acquiring tens of thousands of U.S. residential rental homes. At the same time, access to credit for those desiring to capitalize on appetizing investment opportunities in the market has been incredibly restrictive, even for well-qualified borrowers. The B2R Finance pivot completely changes these dynamics. The new buy to rent financing source puts all of the best of Blackstone behind the smaller real estate entrepreneur to fuel their goals for the new year, and long term passive income generation and wealth building. With access to considerable deal flow, the capital to execute on it and a lending partner that really understands their needs the next 12 months promise to be an exciting time for expanding portfolios. In an interview with B2R President, John Beacham, Realty411 got the inside scoop on the firms new loan programs Making Buy to Rent Finance a Breeze So whats so notable about this new collection of loan products, and lender, and how easy is it to get funded?

Financing Options
nightmare scenarios in which they have In our exclusive run out of funds have proven them to not January 2014 interview always be the most attractive option for John was quick to point buy and hold investors. out that while B2R Blackstones B2R flips this all on its Finance is a completely head, and specifically provides critically separate entity to Invineeded liquidity for those with 5 or more tation Homes, it puts rental homes, who are seeking loans from all of that experience, $500k and up. billions in liquidity and John Beacham This enables investors to re-capitalize, understanding of the challenges investors achieve leverage for expanding portfolios face in this arena into backing the smaller and is providing a massive cash injection rental property landlord. with wide reaching benefits which should In fact, B2R is one of the only players make life a little better for everyone. in this segment of the market. Specifically 3 Steps to Success it is unique in offering tailor made loan When asked about the advantages of products for financing single family rental working with B2R Finance, John Beaproperty portfolios with loan amounts cham explained the B2R management between $500,000 to $50,000,000. team has funded significantly Mr. Beacham more rental homes loans than points out that LOAN PROGRAM other institutions, pointing out not only are Highlights: the benefits of the expertise and approximately Easy 3 Step Loan Process focus as This is all we do. 98% of the na 30 Year Amortization Of course what everyone tions estimated 5 & 10 Year Terms wants to know is how easy it is 14 million sin Non-Recourse Options to get one of these loans gle family rental Min. DSCR 1.25 John told Realty411 that homes actually Low Cost decision making on these loans owned by small- Loans from $500k to $50MB is primarily based upon the asset er investors (not and cash flow, the company offers non-relarge institutional players), but 75% of course options; providing fast funding and those properties have been purchased with a straightforward process. no debt. John goes on to highlight thats Beacham was clearly very bullish on over 10 million properties in the U.S. with the outlook for rising asset values, which no financing on them, much of which has been picked up by entrepreneurs buying for investors should take as a great sign, and indicator of an aggressive lending partner their own personal portfolios. which really wants to make loans, and B2Rs President comments that this pool which represents around 1 in 10 of all a lot of them. According to the head of the unit the borrowing process is really a homes in America doesnt remain unlevsimple 3 step process: eraged due to a choice, but rather a gap in 1. Call toll free on 800-227-8107 or apply the market which has left investors sorely online at http://www.b2rfinance.com/ underserved. apply-now Besides the strict credit requirements 2. Return the signed term sheet and banks have set, investors in this segment expense deposit for due diligence of the market have been buffeted by 3. Close your loan quirks in underwriting requiring extensive paperwork and limits put on the number of Investors who are serious about improving properties able to be financed. Hard money and growing their portfolios for 2014, need to learn more about B2R Finance and lenders have tried to move back in, but high fees, double digit rates and occasional the opportunities they offer.

By Tim Houghten

Lets Analyze a Deal!

ve done many deals over the years and one of my favorite deals happened to be a 107 unit hotel that I partnered on with a student and closed Jan 1st, 2013! Talk about a heck of a start to the new year. The deal was brought to my attention by a broker that weve closed other deals with in mid 2012. After going to the hotel and spending a couple of days there, we quickly observed that it didnt have as many flaws as previously thought. As a matter of fact it was already on its way to grossing around 900k in revenue for the year. We did notice that there was a good number of rooms that were down, roof that had leaks, pool that needed repairs and poor sign-age. Most people when going into a property think that the more problems that a property has the less upside. Its actually the complete opposite, I love problems! The more problems, the more opportunity..for both upside and revenues. I look past the minor flaws with a property and I go straight to the bones, and then location. if those things check out..i move to the next phase. This property had all the components that we look for in our model, good bones, good location, and a motivated seller! When it was all said and done, we were able to pick up this property originally priced at 2.6M for only 1.9M. This was a Quality Inn that only had about 4 Months
Larry Goins Discusses His Deals, pg. 82

left on its contract. So we were able to structure the deal on the front end with a lease option and then exercise the option with owner financing for 5 years. We were able to get into the deal with none of our money and not only that, but the cash flow from the property was able to pay for all of the repairs that were needed. In just one year, we were able to increase the revenue from 900k to over 1.3M. Thats 400k in additional cash flow in just one year! We even enjoyed cash flow of over 50k in a single month a couple of times throughout the year. The repairs that were needed were not too intensive. We had to replace and patch a number of places of the roof over the lobby along with fixing the pool and getting about a dozen rooms up and running. It was nice to have the cash flow from the property be able to cover the repairs of the hotel. Ive done many hotels with much more repairs needed so this deal was a bit of a cosmetic turn around for us. One of the great things I love about hotels is that if you pick the right one and you buy it right, you can make many repairs and do most of the turn around from the profits of the hotel without having to go borrow more money. Its one of the main reasons that we dont do too many closed down hotels, you actually have to have a capital reserve while your making your repairs with no revenue

coming in to help you out. I like the simple fact that Im making money day one that I take over and all Im doing is making improvements and putting heads in beds. Weve had this property for exactly one year now and weve loved every minute of it. Not only did the cash flow pay for the repairs, but it also paid for the down payment that we needed as well. Another reason I love hotels so much is that I have managers at each of our hotels taking care of the day to day activities while Im out looking for my next deal. Making sure that you have a good strong manager with experience is a big plus. It will only make your life easier. We have a great team in place right now and were looking to get the revenues up to 1.4-1.5M for 2014 at this particular hotel. With the amount of additional revenues that we created over 2013, we also created almost 2 million in equity. Im ok with equity, but i really love what actually pays the bills..CASH FLOW.

investor looking for a great deal or someone hes mentored, Investors Rehab has no shortage of buyers. To create such good deals, Goins and his devoted team are always on the hunt for property to buy. He estimates they make a jaw-dropping 2,000 to 3,000 offers a week; they purchase 10-15 properties a month through their office. Once an offer has been accepted, his dedicated team gets three repair estimates and conducts a comparative market analysis. The properties Goins buys and sells arent turn-key, he says, they are what he has dubbed, learn-key. Learn key? Thats right, Goins tells me, Learn-key means you learn as you earn. Investors buy properties for great prices that need a bit of work, and thanks to the research the Goins team does beforehand, they know about how much work will be needed before a property is rental-ready or can be flipped. The legwork Goins team does takes away some of the risk for new investors and is a great help to seasoned investors. Learn-key properties come with instant equity while turn-key properties come with instant
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cash flow, Goins explains. He wants investors to get the most equity they can out of a deal. Simply stated, learn key teaches investors to fish whereas turn key gives investors the fish. Larry Goins, and his career in real estate, stand apart from the rest. His continuous drive to perfect his craft, learn better ways of doing things and new challenges to win is both inspirational and rare. Though his son and wife have an obvious interest in real estate, perhaps his daughters interest in horseback riding indicates that she too hasnt fallen far from the Goins tree either; in both real estate and riding, there are always different horses to tame, new challenges to tackle and techniques that can be improved upon. Keep Learning. Take action. Goins says. Just as in horseback riding, in real estate you cant go far unless you saddle up and start riding. Since this is an article about a man driven to help others, it should come as no surprise that hes decided to offer our readers his book about buying HUD Homes Half Off free of charge to our readers. Think of it as a nudge to take action from Larry himself. To receive your copy, simply visit Amazon or get your free copy via this website: http://freehudbook.com/
reWEALTHmag.com

Jason Schubert
President, Rich In Five

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Its about time we show you

Back to Basics, pg. 22

their customers invest, playing to their own strengths. new investments they want to finance, In todays climate, people need partly due to rates, but also due to a to show they have money, they have relatively new program put in place by income, and they have credit, said Fannie Mae. Bighaus estimates fully Bighaus. I tell new customers, before a FREE Lifetime one quarter of his business right now Steve Bighaus has over to 24 years experience inReceive the mortgage industry. He mainta you commit anything lets gather Membership to the Worlds is driven by the so-called delayed your documentation. Lets make sure focus on servicing thegot real-estate investor nancing option Largest aggressive Loyalty Rewards financing exception. youve income to support your by offering benefits include: I get a lot of customers who for buyers existing debt; youve in got purchasing cash reserves or Program, resources interested renancing their investment prop pay cash for their properties, said to support down payment and closing Global Network Bya concentrating on investment properties nancing that comes with them Bighaus. Theyll buy property with costs; and that the credit score is there,and the 160+ Million Products cash, and then theyll want to get that because thats going to affect your rate. & Services Steve is recognized nationally as an industry expert. The knowledge that he has ena money back so they can keep utilizing Having that work done in advance 2.6+ Million Members it. helps investors know exactly him to nd nancing for people evenwhere when theyhave had difculty elsewhere. Over 150.000 Points Just a few years ago, refinancing they stand before getting too deep of Acceptance with a cash-out option (so you into an investment thats not quite Earn Cash Back with Every Purchase AND Turn Your Expen Earn Cash Get your free lifetime membership to the worlds largest loy could re-invest right for them -- and since Bighaus Purchase A Expenses i with that cash) stores everything electronically, when through Fannie Mae investors return for another loan for Get your fr to the worl wasnt available to another property they want to purchase, rewards pr investors with more they dont have to send a lot of the same Member Benefi than four financed information over and over. properties; the new And, Bighaus says, investors return steve.bighaus@snmc.com program targets again and again. NMLS#: 112825 small investors I was just back in Memphis last not a commitment to make a loan. Loans one are subject tofirst borrower qualications, who hold fiveThis or is more, and has other week, of the markets where including income, property evaluation, sufcient equity in the home to meet Loan-to-Value requirements, and nal credit approval. Approvals are subject to underwriting attractive benefits as well. I expanded after the Northwest, and I guidelines, interest rates, and program guidelines and are subject to change without notice based on applicants eligibility and It allows an investor to pay cash an existing was talking to one of nance my clients, said higher over the lifewww.InvestorsRewards.com market conditions. Renancing loan may result in total charges being of a loan. Reduction in FREE Registration No Sign-Up, N payments may reect a longer loan term. Terms of any loan may be subject payment of points and fees by the applicant. Security for a property, immediately turn Bighaus. Between him, histo wife, and Monthly or Annual Dues! National Mortgage Co. is an Equal Opportunity Lender. around and re-finance it, and get their another family member, over the past original purchase price back -- plus three years Ive done 26 loans for these www.InvestorsRewards.com they can roll in the closing costs, said folks. He laughed. They must be Bighaus. And, he added, lenders can pretty happy with me. utilize the appraised value to drive the loan-to-value ratio. That obviously maximizes things for the borrower, because when theyre out there looking at property with cash in hand, We have experienced advisors to answer your theyre going to get a little better deal financial and investment questions... in a lot of cases. l 1031 Exchange properties available By being able to utilize the appraised value, if theres a little Register for our next Investment Strategies Workshop equity in the property -- if they buy hosted by Tweed Financial Services, Inc. it, say, for $50,000 and its worth Call 800-526-1599 ext. 106 or enroll online: www.TweedFinancial.com Rusty Tweed Meal included, provided by our sponsors. Seating limited to experienced $80,000 -- Bighaus said they can Certified Estate Advisor investors. Reservations required. capitalize on that and minimize what they personally have invested in the As with any real estate investment there are various risks, including but not limited to: property. illiquidity, limited transferability, and variation in occupancy which may negatively impact Theoretically they can continue cash flow, and even cause a loss of principal. Real Estate values may fluctuate based on economic and environmental factors and are generally illiquid. This does not constitute as to keep turning their money, said an offer to buy or sell any real estate, securities or insurance. Such offers are only made by Bighaus. Financial & Estate Planning prospectus which should be read thoroughly and understood before investing. Prospectuses will Part of the industrys new for Real Estate Investors be available at the workshop. CA Insurance License #OB13052. We do not provide tax or legal traditionalism means going back (626) 588-1520 advice. Securities products offered through Concorde Investment Services, LLC, member FINRA/ 2060 Huntington Drive, Suite #1 SIPC. Advisory services offered through Tweed Financial Services, Inc., a registered investment to lending fundamentals; thats an San Marino, CA 91108 advisor. Tweed Financial Services, Inc. is independent of Concorde Investment Services, LLC. arena where seasoned mortgage professionals like Bighaus truly help

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Safety in Numbers, pg. 18

Taking Title by Garrett Sutton, Esq., pg. 81

valued at more than you have with a lien on it thats larger than the amount of money that you have to invest youre just not a player for that a parcel that size, where rates of return can be much higher. Unless youre coming into the tax lien industry with substantial resources, Gleason says most of the time youre going to get squeezed out and you certainly wont be able to achieve any of the economies of scale fund-based buying allows. An investor who tries to walk into one of these auctions by themselves with $50,000 may be able to buy 50 certificates at $1,000 each, said Gleason. But working with a group of investors, we can pool our resources and buy 1,000 certificates further diversifying the risk. And in the unlikely (but possible) event one of those properties goes bad, so to speak, its going to appear pretty insignificant in comparison to the overall pool of liens. Its a model thats made a historically safe investment even safer and more profitable. What we do is we make it a passive investment, and were able to enhance the rate of return for investors because of the economies of scale, said Gleason. Weve been able to produce great returns in very safe, reliable investments thats very attractive in an uncertain market. Gleason says he continues to think safety and security are the right watchwords for investing right now more than ever before and that MMGs group of investors are like-minded. You cant find a more favorable risk vs. return scenario in real estate, said Gleason. Pooled investing in tax liens is an extremely safe and reliable investment thats also very profitable when you know what youre doing. Gleason laughed. Weve challenged some very sophisticated people to find us a more favorable risk/reward investment out there, and so far, no ones been able to do it. For more information on tax liens and MMG Capitals investment fund, visit the website: www.MMGInvestors.com
SBD Housing Solutions Expands to Florida, pg. 21

celebrate your successes! Exit Strategy Please tell us specifics of the exit strategy. This was a true flip. We listed it and got a contract on it on day 5. We priced it aggressively to get a fast sale, but hit it right on the head. We poured over the numbers to make sure that we werent going to be asking too much. Every day a home sits is a time and money wasted! Q: What insight did you learn from this deal? A: Staging a home is HUGE factor in differentiating us from the competition in Florida. The cash offer actually asked us in their offer, can
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the Seller vacate the home in 14 days if possible for a quick closing..which is hilarious as they thought we occupied it! It is obviously a vacant investment home. But testament to our wonderful stager! Moreover, I believe that there are simply some homes that will NEVER sell retail. Whether it is just dirty or totally run-down, with all the stuff on market right now, a home that is not good looking just wont sell. Herein lies the opportunity for us to come in and do our value add. To learn more about SBD Housing Solutions, visit: www.SBDHousing.com

2009 that a large national title company announced it would no longer issue title policies to two large national banks. These lenders records were just not trustworthy, and the title company was not going to take the risk. Know that for years to come there are going to be title issues arising from the real estate collapse in 2008. It is for this reason that sellers (mainly banks) of foreclosure properties are using quit claim deeds. They dont know what happened and they arent about to warrant or guarantee that they have a clean title to convey to you. The quit claim deed they use instead says, We dont know what weve got but whatever weve got were giving to you. What is offensive is the lengths that some of these lenders will go to get you to bite on a quit claim deed. They will tell you that it grants you full rights to the property. It doesnt, because neither you nor the bank really knows what those rights are. To further get themselves off the hook after taking your money for the property these banks will bury the fact that they dont warrant good title in an Addendum at the end of a sixty page contract. They want you to waive any rights you may have in the matter. They may or may not know that the title is so defective that the property will be severely devalued. But they want you to release them from any future problems and sign off that everything is okay. There have been reported cases where the Addendum is intentionally withheld and only provided to you at the closing. (You know, at that last meeting at the title office where you are expected to sign 47 documents without reading them.) Accordingly, please be very careful and have your own attorney review such transactions. The second reason a quit claim deed is not preferred is because the quit claim deed severs an express or implied warranty of title. (Remember, you are just granting whatever you may own which may be something, or nothing.) As such, the title insurance doesnt follow. While this may not seem like a big deal, lets consider an example. You buy a property in your name. Part of your closing costs includes a policy of title insurance. Several years later you want to transfer title to an LLC for asset protection. Your friend says a quit claim deed is the easiest and quickest way to go. You file the quit claim deed and now the property is titled in the name of your LLC. Later, you learn that the boundaries werent properly surveyed. You seek recourse from the title company since they insured the boundaries were correct. But you now learn that by quit claiming the property into your LLC you have unwittingly cancelled your title insurance policy. The boundary issue is no longer insured. The way to avoid this problem is to use a grant deed or a warranty deed. A title insurance policy isnt extinguished in such a transfer. As well, a grant deed is just as easy to prepare as is a quit claim deed. But in either case, remember that easy isnt always best. If you are not an expert at title transfers, I would have a lawyer or title company handle them. For more information on this and other title matters, please read my book Loopholes of Real Estate or visit: www.CorporateDirect.com
reWEALTHmag.com

PAGE 86 2014

PROBATE INVESTING
T
here have been countless books published about how to profit from real estate investing. In every case, the objective is to buy low and sell high. Thats how you make money: you find a bargain and you resell it at market value or higher.

2014Invest in Your Future

by Leon McKenzie, US Probate Leads

You might imagine that when a widow passes away at the ripe old age of 101, her children or relatives automatically inherit her house. They Whether you are new to Real Estate investing or you are a seasoned investor currently making a number of new Residential Real estate may continue to live there, however investments each month you owe it to yourself to look into the Resithe house may eventually be sold on dential Real Estate Market Niche known as Probate Investing. the open market to whoever makes the highest offer. The disposition of Untold Number Leads Always Personal Property a decedents property may seem like of Leads Available is Available a private, closed process, but it often isnt. Many factors can influence the ~ 6 million unsetOver 2 million new 99.9% of Probate tled probates every probate cases open cases have some type way an estate is disposed of:
minute of every day in the United States, Estimated value of $600 Billion. each and every year of personal property opportunity

Residential Properties in Most

70-75% of probate cases have some type of real estate opportunity

Most Executors are Out of County

~85% of the Executors do not live in the county where the probated property is situated

Many Residential Properties will Be Sold Soon

If the Executor is going to sell Residential Property in the Estate, ~65% of the Estate will sell within 4-8 months

Understanding Probate is Not Difficult

How do you go about finding below market properties? There are so many people looking for properties how do you find ones that you can buy and sell so that you can make the type of money that you need to secure your future? Investing in properties found in Probate can be your key to Success! Probated property is anything that is owned by person when that person passes away and his or her estate is settled. You might think that everything a decedent owned including their home or other real estate property is always willed to their heirs, who then do with it what they please or as they are instructed by the persons will. To the casual observer the process of probate might seem very straightforward.
Realty411Guide.com PAGE 88 2014

Sometimes the decedent has no heirs and has not left a will. The property may be in danger of being foreclosed because mortgage payments cant be met. Possibly, the heirs simply cant agree on what to do. Maybe, the estate does not have the cash to pay property taxes. And, possibly, the executor lives out of state and in order to manage the sale of the property must fly in to meet with prospec tive buyers. Who pays these travel costs?

reWEALTHmag.com

ADVERTORIAL

Contact Us for More Information on Probates: At US Probate Leads, we offer a range of lead generation and communications tools specifically designed for probate entrepreneurs, including software that can help you to design, track and automate your own communications campaign. For more information on our products and services, or to learn how we can help you to build wealth through probates, visit online at: www.usprobateleads.com or contact us: (877) 470-9751. Astute Investors have long known about this market niche and have profited by being the one to help the Executor sell his property when he needed it sold and often times making a tidy profit while doing so.

Images: 123RF.com

PROBATE INVESTING
Do you want to find new residential properties that very few of your peers know about? There is a market niche where Equity..... is usually high. Competition..... is minimal. Sellers..... are very motivated. And there are literally thousands of these available in most major metropolitan areas each year. In fact there are more than $600 BILLION worth of residential real estate properties in the US probate system at any given time.

Change Your Life, Now

If you want to develop financial security while pursuing something that you love, theres no better way than to make smart investments that will bring a high return. In todays economy you have nearly limitless investment choices. You could buy stocks and bonds; you could invest in fine art or gold; or you could provide venture capital to emerging companies. One of the most rewarding ways to earn your financial freedom is to invest in real estate. People always need housing, and the amount of land available is finite. A home depreciates over time, but with quality repairs the value can soar. Real estate comes in all shapes and sizes, in all locations. To see a house, all you need to do is hop into your car and drive to the address. Once you know how to get the leads to probate properties in your area you will be off and running. Once you understand this process you will be way ahead of your competition in identifying new opportunities to work with motivated sellers who own properties they are oft times willing to sell at significantly below market values.
PAGE 89 2014 reWEALTHmag.com

Realty411Guide.com

Practical Legal Aide for Investors

I
Christy-Ann Olivares explains how Legal Shield can benefit investors & entrepreneurs.
n the real estate industry, certainly there are times when an investor requires in-depth legal counsel on a specific legal issue such as incorporating and legally protecting your business, signing a contract or document you hadnt fully read or understood, the risk of being sued from a joint partner deal, a dispute with a tenant or property manager, collecting money from a tenant, property manager, or joint partnership, just to name a few. Even at a cost of $200 or more per hour, the outcome may make that expenditure worthwhile. But not many of us like to call an attorney for advise or help of any sort, as we know upfront, the charges we incur can be of an amount extremely large. This puts many of us in a difficult situation of whether we should spend the money for attorney fees or take the risk of not having council, by doing without the cost or expense and unfortunately without the professional assistance that we might need or require. Prepaid legal plans have been around for many years, but it has taken a few years for legal service plans to achieve some degree of market penetration and use. Not surprisingly, the great recession has been a catalyst for growth for prepaid legal plans. Real estate investors continue to pinch pennies tighter and tighter, squeezing out legal service as a viable option. There are a variety of plans and providers in the market, and there is some degree of specialization among these providers. In one example, real estate investors pay a designated monthly fee, and receive a package of legal services to protect your family and your business. Real estate investors have more things to do than there are hours in a day. There are projects to run, schedules to keep, marketing campaigns, and rent to collect. Many of these activities have legal implications, such as real estate questions, taxation, interpretations of laws and usury rates. But how likely are real estate investors to pick up the telephone for legal advice and assistance when every minute the legal meter is adding fees? Legal Shield allows real estate investors to pick up the telephone for professional, person-to-person legal advice and assistance as part of their prepaid legal service plan. Over time, many real estate investors find new ways to use their legal service plan and often these applications go directly to the bottom line. The Home Based Business Rider is attached to the Expanded Family Plan and in combination enables the investor to protect

their family and business with significant benefits. To become eligible for membership, you must meet the following qualifications. Since the Home-Based Business Legal Service Rider is an add-on to the Expanded Family Plan, you must have an Expanded Plan membership. Your home and business address must be the same. Your business entity must have 3 or fewer employees. And your business must be for-profit and cannot be publicly traded. For information, call 415-902-8772 or visit www.ChristyAnnOlivares.LegalShield.com to learn more about how you can save your family money and grief.

MEMBER BENEFITS:
Trial Defense Debt Collection Letters Telephone Consultation Christy-Ann Olivares Legal Correspondence Investor - Connector - Motivator Legal Documents Reviewed Independent Associate Small IRS Audit Protection Business & Group Benefits Reduced Fee Services @25% Expanded Family Plan Benefits

SFBAREIA offers serious real estate discussions in a relaxed setting and social environment. Connect with us online to learn more about our monthly mixers. Held on the 1st Thursday of Every Month LOCATION - THE VINYL ROOM 221 Park Road, Burlingame, CA 9410 7 pm to 9 pm Visit us @ http://www.meetup.com/SFBAREIA
reWEALTHmag.com

Call 415-902-8772 for your FREE 45 minute Private Session

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PAGE 90 2014

Image: 123RF.com

10 Rules of Successful Investing, pg. 80

Diversifying across multiple states helps reduce your risk should one market decline for any reason (increased unemployment, increased taxes, etc.). 8. Use Professional Property MANAGEMENt Never manage your own properties unless you run your own management company. Property management is a thankless job that requires a solid understanding of tenant-landlord laws, good marketing skills, and strong people skills to deal with tenant complaints and excuses. Your time is valuable and should be spent on your family, your career, and looking for more property. 9. Maintain Control Be a direct investor in real estate. Never own real estate through funds, partnerships, or other paper-based investments where you own shares or other securities of an entity you dont control. You always want to be in control of your real estate investments. Dont leave it up to corporations or fund managers. 10. Leverage Your Investment Capital Real estate is the only investment where you can borrow other peoples money (OPM) to purchase and control income-producing property. This allows you to leverage your investment capital into more property than purchasing using all cash. Leverage magnifies your overall rate-of-return and accelerates your wealth creation. As long as you have positive cash-flow and your tenants are paying off your mortgage for you, it would be foolish not to borrow as much as possible to buy more income property. For more information, visit: www.NoradaRealEstate.com

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Realty411Guide.com PAGE 91 2014 reWEALTHmag.com

Lady Landlords of SD

News Alert from

ack for a progress report, Lady Landlords of San Diego owners Jasmine Willois and Jason Kennedy were originally interviewed in the October 2012 Issue of Realty 411, we are excited to find out what they have been up to since. With the clubs main focus on buying and holding rental properties, they find themselves preaching a more conservative message then most investment clubs in the same industry. LLoSD, is located in sunny San Diego, CA and was founded in 2010 by Jasmine Willois to create a platform and arena where ladies and gentlemen of the craft (turnkey investing), could share experiences, networks, and partner to acquire real estate for longterm cash flow. A process that the club owners themselves take part in, as their overlying message is that true wealth is built by holding assets long-term. The club has been well received by all, currently over 55% of their members are men, and 65% of their online community is from outside of the state of California. Realty411 caught up with Jason and Jasmine, their real estate investment club, which caters to women and cash flow investments had just opened its doors two years ago and they were determined to carve a spot out for the club and its members in this competitive world. And that they have done! In a years time the club has secured a relationship with the Christian based AM radio station KPRZ and works closely with Art Valenzuela the host of the entrepreneurial show, THE START UP. You can catch Jason Kennedy discussing the clubs strategies events, local and out-of-state real estate investing triumphs, by simply turning the radio dial to AM 1210 on Saturday evenings from 7pm 11pm. KPRZ

also has an app you can download and listen to them anywhere on your mobile device. In response to the large amount of inquires about how to successfully invest out of state, LLoSD now offers an inexpensive 3-day out-of-state mentoring program to its members and fan base. This program trains investors of all levels to get a rock solid investing business up and running in 3-days, Anywhere, USA. Since inception these two have mentored investors in Chattanooga, TN; Indianapolis, IN; Hoboken, New Jersey and almost everywhere in between! Jasmine points out that, not everyone can afford to pay 45,000 for an education in real estate investing, and for those we have a platform that is equivalent if not superior to those who do their proper due diligence and may not need to purchase another set of DVDs and instructional booklets. We are proud to offer handson; in the trenches educational package that delivers the results many have been looking for, for years! Jason reflects on how the times have changed by pointing out, the flipping frenzy has calmed down a bit, and we are beginning to stand out as a club that has its head in the right place. The clubs growth has been steady and loyal, Jason explains that, many of the clubs members travel well over 60 miles to get their fix of this tag team in action, so the real estate investment club is expanding to Orange County CA and will be called LLoOC! The first meeting will be November 19th 2013 and will be held at the DoubleTree, Dohney Beach in San Clemente. The clubs theme in addition to being about conservative real estate investing, will for fun be called THE REAL Lady Landlords of Orange County, as a play off of the canceled realty TV show. These two love what they do, and it shows!! Meeting the third Tuesday of every month, the club boasts local and national educational speakers, complimentary refreshments, networking sessions, role-playing games,
PAGE 93 2014

a haves and wants section, and a sea of femininity. Residents of Southern California, Jason and Jasmine have been investing out of state for over 23 combined years. The two of them and have successfully held rental properties in Michigan, Arizona, Nevada, Mississippi, Florida, Chicago, North Carolina, Georgia, New Jersey, California, and now hold most of their assets in Indianapolis, IN through their real estate investment firm Wealth By Real Estate Management, LLC. Jason Kennedy, a real estate investing mentor by trade, was the perfect fit for the club, Ms. Willois states, as she describes Jason as a true gentleman who loves to promote and encourage womens involvement in all that he does. Some men are intimated by the presence of women, and some are very open to the idea of working with them. This is a place for the latter man. Jasmine Willois is an investor analyst by trade and contributes her Wall Street experience to the club world by bringing what she calls her bond-like strategies to the real estate investment world. Jason describes Jasmine as a feisty woman with direction and focus, who loves to earn her keep. He laughs at how she is a perfect partner for the east coast business dealings they often find themselves involved with. Our mission is to create an environment in which our members can build camaraderie, share tested investment techniques, and promote responsible investing through networking, and referral-based partnerships, Jasmine says. The price of admission to their live club events is $25, however investors can begin saving money by pre-registering at meetup. com or on their website and receive a $5 discount. The Lady Landlords of San Diego and Orange County also educate their members via seminars, webinars, workshops and live presentations. Its 2014, step into the pink domain of LLoSD and LLoOC.
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final word

RELATIONSHIP BUILDING R
By Janice Bell ichard Edrosolan is the CEO of Whiterock Capital, whose investment firm focuses primarily on markets in Southern California and Arizona. He is well known as an advocate for developing relationships in real estate. These relationships, combined with the right marketing mix and a flexible business model, will enable real estate investors to grow their volume in 2014. Many people talk about relationships in business today, but Edrosolan lives it. He has earned a reputation for what some might call intense loyalty and while simultaneously enjoying rapid business growth by remaining flexible, and investing in others. Real Relationship Building for Real Estate Investors

Whiterock Capital CEO Discusses

Authentic relationship building takes more than just talk in the real estate industry today. Less experienced investors need to realize this, and develop loyalty with others not only to survive, but to thrive. Despite fast talking gurus and the hype in various books and programs, newer investors must avoid being led astray. The experts who are solely concerned with squeezing every last cent out of each and every transaction are often doing themselves a serious disservice. In fact, they are ruining the opportunity to establish meaningful relationships. Edrosolan says that building relationships is one of the most important priorities for real estate investors who want to ensure their long term success and profitability. Among the most essential professional partners he cites realtors, lenders, and contractors. Richard says everyone wants to be treated fairly, and to be respected, and more than just buying family dinners for connections, its really about loyalty. Such loyalty cannot be
Realty411Guide.com

cultivated by being an already began to fade expert nor through slick for the serious investor marketing. Whiterock looking for real value. A Capitals success is based solid mix of direct mail, upon demonstrating and online, print marketing practicing this loyalty and referrals avoids the first. reliance on one method, During the interview and the risk of being put Edrosolan specifically out of business with the pointed to three current next inevitable market examples of how Whitchange. erock is investing in the The same is true for success of others. These the types of properties include taking care of and sources that invesagents, giving hard money tors seek. Trustee sales, lenders the business oppor- Photograph of Richard Edrosolan HUD auctions, probate by John DeCindis tunity to make some monproperties, the MLS, ey when their use wasnt and dealing directly completely necessary, and the creation of with distressed borrowers are all good, but a true win-win situation for a seller who the best performer of these sources at any was previously stuck with a burned out particular time is in constant flux. home. Although these situations may have Edrosolan also places great emphasis cost Whiterock some money in the short on building on your real estate education, term, these are the types of activities that understanding of how markets work, and create long-term loyalty. how knowledge of trends in jobs and the Things often move in this industry at economy can be used to keep investors lighting speed, but those individuals with ahead of the herd. great relationships will most likely make it, and continue to grow their business. Whiterock Capitals Tips for Such entrepreneurs will deliver outCrushing it in the Year Ahead standing products and services thanks to business partners who are willing to go In our exclusive interview with the foundthe extra mile to assist them. In order to er of Whiterock Capital, the CEO said cultivate loyalty, one must reward the loyhe believed that contrary to media hype, alty shown by others, remembering that it that there were still plenty of deals out is not all about price, but about generosity there. In fact, he says even if you won and delivery on ones promises. the lottery you still couldnt soak up all of the inventory out there. On Real Estate Marketing In addition to the above, Edrosolans for Success in 2014 top tips for success ahead include: 1) Monitoring the competition and lookWhiterock Captial has been candid about ing for ways to do it better; its love of direct mail in its marketing 2) Be lightning fast when making offers to reach sellers and to uncover yet more (as in making offers on the spot); deals. However, the firms CEO is also 3) Value consisten volume over elephant quick to point out the vital importance of hunting; maintaining a well-rounded marketing 4) Be ready to adapt to a changing marmix, thereby staying ahead of the curve. ket. Nothing stays the same in real estate For more information about investing forever. As soon as the media Richard Edrosolan, please visit his reports on a hot niche, that trend has website: www.whiterockrei.com
PAGE 94 2014 reWEALTHmag.com

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