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Vol. 1 • No. 1 • 2010

Maverick Investor Group

Serving the Needs of Accredited Investors - INSIDE: Information to Grow and Maintain Your Wealth

16 Words of Wisdom from

Masters of Real Estate 19 Maverick Investor Group
Reveals the Next BIG Thing 35 Bruce Norris Prepares for Annual
“I Survived Real Estate” Charity
<< Table of Contents >>
7 Secrets from the Master!
Dave Lindahl shares his latest
tips for Investing Success
9 No Drama in Dayton
Triple Net Houses Helps
Investors Profit without Issues
11 California Living with
Tennessee Cash Flow
Mathew Owens, CPA, owner of
OCG Properties, explains why
he loves to invest out of state
14 Beware of the Investment
Vampires by RBS Homes
16 Dolf & Carter: A Master-
mind with Arizona Investors
19 Enjoy a Tropical Paradise
with Phenomenal Returns
In search of their latest gem in
Nicaragua, Maverick Investor
Group traveled the world
22 Investor Nation Shares their
Blue-Chip Real Estate Strategy
25 Ginger Ma-
cia’s Three FREE
Ways to find a Great
Wholesale Deal
27 Creative Real Estate
Techniques with Edu-
cator Bill Gatten
28 Matt Malouf’s 10
Weeks to Massive, Passive
Cash Flow
30 A Visit with Sensei at his 12
Rounds Club
35 Bruce Norris discusses the
“I Survived Real Estate 2010”
Charity Walk and Gala
37 Join the Ultimate Bus Tour
with MemphisInvest.com
39  Creative Financing Options
with MMG Capital, LLC
40 Philbin Capital Discovers
Deals in the Golden State
42 The Key to Success by Club
photo: Sam Green
Founder Sam Sadat
45 Buy Bigger and Better Deals
by Kathy Fettke
46 Alternative Economics™
Club Debuts in California
51 Stop the Gambling!
Mike Woo, a “Rich Dad, Poor
Dad” protégé, advises clients
52 Is Your Mortgage Underwa-
ter? Perhaps a Short Pay Refi-
nance is the Answer
55 Pay Off Your Rental House
in Five Years with the Short
Term Retirement Program
57 Who’s On Your Team?
Insights by 360 Investments
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 Investors & Industry Leaders Share
an Evening of Glamour & Giving
The 3rd Annual “I Survived Real Estate 2010” will Raise Money for
Breast Cancer Research & Unite the Nation’s VIPs to Discuss Investing
by Lori Peebles for investor rights. For the past two years, event honors her courageous effort to fight

D
he has united real estate giants to discuss this disease and hopefully adds to the like-
oes “Shadow Inventory” really ex- the issues that matter, and most important- lihood of someday finding a cure.”
ist? What is the state of the REO ly, to exchange ideas that can help investors In addition to raising breast cancer
market? These are just some of do what they do best: rebuild communities awareness and funds for research, as well
the crucial questions to be and rejuvenate econo- as providing investors of all levels access
Bruce Norris with his wife & son.
tackled by real estate in- mies. to information, “I Survived Real Estate”
dustry experts on the eve- “The panel we’re has been instrumental in spotlighting the
ning of September 17. putting together can crucial role investors have in our nation’s
The Norris Group, speak about these issues economic infrastructure.
headed by Bruce Norris, from several differ- Norris explains: “This event gives a
a 30-year veteran known ent point of views and chance for investors to be seen in a different
among investors as the hopefully provide us light. We all know investors are often seen
“Nostradamus” of Cali- with some new as the “sharks”
fornia real estate, is once insights mov- Tommy Williams of the real estate
again organizing their an- i n g  f o r w a r d , ” i n d u s t r y.   We
nual philanthropic event in Norris explains. take this night
Orange County. Some returning to show other
This black-tie affair guests, include: sectors that we,
is one of the most fash- Joseph Magdz- as investors,
ionable tickets in town, iarz, 2011 presi- play a signifi-
mixing charity, important dent for the Ap- cant role in the
trend updates, education, praisal Institute; solution side of
entertainment and industry networking. It Tommy Williams, 2008 president of the market.”
is always a sold-out gala, one that attracts the National Auctioneers Association; and Norris knows firsthand that real estate
the Who’s Who of real estate. Christopher Thornberg, principal of Bea- investors take great risks in a volatile mar-
When we attended last year, it was fasci- con Economics. ketplace. “With greater acceptance, their
nating to note that besides all the tuxedos, New guests are also being added. “We ideas have a better chance at being heard
satin dresses and crème brulées on fine chi- are very excited to have Sean O’Toole and being implemented,” he says.
na, some serious industry trends and alter- from Foreclosure Radar joining the panel The charity event was designed to give
native solutions were pre- this year to add his everyone, regardless of personal income,
Guests at the last year’s event.
sented in just a few hours. data-driven and in- an opportunity to participate.
It was an evening of edu- vestor-minded per- “By joining our walk team and raising
cation with a sophisticated, spective.” the money in their networks, attendees
entertaining twist, much like For Norris, the “I and sponsors can technically come free of
the man behind the event. Survived Real Es- charge,” Norris explains.
“The theme for ‘I Sur- tate” series is per- Sponsorship opportunities are also
vived Real Estate 2010’ sonal. This night is a available. Benefits for advertisers include
will again focus on trends, way of honoring his inclusion in all mailers to local, state and
solutions and have an added wife, his family, his national government officials, SEO op-
focus on the state of REOs,” Norris says. community and profession. timized website advertising, inclusion in
“With constantly changing government In the last two years, the fundraiser has mailers and flyers, plus event program
regulations, it’s been difficult for anyone in raised over $100,000 for the Susan G. and screen exposure. Each sponsor is also
the real estate business to build a sustain- Komen Foundation; these funds are used mentioned in video and radio segments that
able business model.” for breast cancer research. air before and after the event.
Norris, a 30-year veteran investor (from “My wife, Marsha, was diagnosed with For more information, please visit online:
rehabber to private lender) is a champion breast cancer more than 15 years ago. This www.ISurvived2010.com

Realty411Guide.com PAGE 35 • 2010 reWEALTHmag.com


The Clothier family, from left to right:
Chris, Brett, Kent and Kent Sr.
M
ainstream reporters who
present real estate as
doom and gloom surely
haven’t been to Mem-
phis. The city, known as
the birthplace of rock ’n’ roll and the blues,
is bustling with industry activity — and
visitors aren’t just touring Graceland and
Beale Street, they’re leaving as bona fide
landlords.
Our editorial team was invited to attend
The Ultimate Cash Flowing Buying Tour
by MemphisInvest.com, a boutique, Mem-
phis-based brokerage catering to out-of-
state investors.
The company, which serves more than
200 clients and manages more than 650 in-
vestment properties for them, joined forces
with the San Diego-based FortuneBuild-
ers, Inc., (owned by Than Merrill and the
“Flip This House” team) and
together they organize one of
the largest property buying
events in the nation.
“You’ll never see anything
quite like this,” promised
Kent Clothier Sr. during our
telephone conversation a few
months ago. Kent Sr. is found-
er of MemphisInvest.com. He
takes the helm of the 18-team-
member operation, which is
managed by his three sons,
Kent, Chris and Brett.
In my six years as an out-of-state  inves-
tor,  I had never attended a property buy-
ing tour. Plus, I repeatedly heard about
the benefits of the Memphis market from
many sources. I thought, ‘What a perfect
time to put on my reporter’s cap and go get
the scoop.’
The Ultimate Cash Flow Buying Tour def-
initely stood up to its name. Just being in a
room filled with investors from around the
nation was electrifying. On the first day, the
event was held at a  ballroom in the Hilton
Hotel, a circular 27-story glass beauty with
Realty411Guide.com
ALL ABOARD!
for The Ultimate Cash Flow Buying Tour
MemphisInvest.com & FortuneBuilders
Unite Investors from 18 States & 2 Countries
and Sell 29 Rental Homes in 2 Days!
outstanding views and plump pillows. In-
vestors traveled from 18 states to attend,
one couple arrived from Canada.
Most of the attendees were investors
wanting to learn how to be-
come MemphisInvest.com
clients. Many were referrals
from their existing client
base, and some were repeat
customers.
“Our average client buys
four homes and refers us to
all of their friends and fam-
ily,” says Chris Clothier,
director of sales and market-
ing.
MemphisInvest.com pro-
vides clients with an option of either buy-
ing a turn-key rental home or one that needs
rehab. The company oversees the work for
the investors. Each property has a separate
quote for the renovation included in its pro-
forma profile. If the rehab goes over bud-
get, it comes out of the company’s pocket.
MemphisInvest.com caters to investors
who are looking to buy in typical middle-
class areas. The company says they stay
away from crime-ridden pockets of the
city, regardless of how the numbers may
appear on paper.
“We only offer houses in the same areas
PAGE 37 • 2010 reWEALTHmag.com
by Linda Pliagas
where we have our own personal invest-
ments,” Chris says. The Clothiers person-
ally own more than 100 rental homes in a
handful of quality, long-term buy-and-hold
areas of Memphis.
Typical home prices range from $34,000
to $85,000, rents average out be $850 per
month. The city boasts high rents and low
prices. But surprisingly, 48% of Memphis
residents rent.
The Clothier family, who were formerly
in the grocery business, moved to Tennes-
see because they saw such an opportunity
for long-term real estate investing and
monthly cash flow.
At the time, Kent Sr., Kent and Chris
were scattered about, working in different
real estate markets (Texas, Colorado and
Florida). Memphis real estate brought the
family together. It’s an additional perk for
proud papa Clothier. “I’m the luckiest man
in the world to have my sons working next
to me,” Kent Sr. told the crowd that day.
On the first day of the tour, the investors
gathered to get educated on the local mar-
ket, meet the Clothier family, and mingle
with JD Esajian from FortuneBuilders.
(The “Flip This House” team owns numer-
ous rentals in the area.)
Continued on pg. 58
 Seeking Financing
for Your Next Deal?
This California-based private
lending company offers creative
financing solutions in all 50 states
M
MG Capital, LLC,
an asset-based lend-
ing company, be-
lieves successful in-
vestors need to have
skin in the game.
For that reason, they still invest company
funds alongside those of their investors
who supply the private money used in their
operation.
Both company and client assets have
grown significantly since their formation in
2007. In fact, the compa-
ny’s principals have been
responsible for the man-
agement of assets valued MMG Capital Funds Creative
at more than $6 billion.
Although MMG Capi-
tal is only three years old,
Investors Across the Country
the principals have over
50 years of combined industry experience;
their expertise includes banking, private
equity transactions, development, secured
lending, land acquisitions and sales.
From an investor’s point of view, one of
the most impressive features of the com-
pany is that they lend on a national scale
— most “hard money” firms keep close to
home and rarely venture off into faraway
markets.
“We’ll go to all 50 states,” says Chris
Gleason, managing director of MMG Capi-
tal, LLC. He explains further, “There are
a number of markets across the country
where we’ve found the types of deals that
we look for, and they tend to be in higher
value areas with greater demand.”
Currently, the states where MMG is the
most active are California, Florida, New
York and Tennessee.
The firm’s success stems from their rig-
orous lending practices, Gleason admits
that only one deal out of 75 makes sense for
them to lend on. However, since they are
an asset-based lender most investors have
an easier time qualifying for an MMG loan
Realty411Guide.com
Interview and article
by Lori Peebles
We’re looking for current
value as opposed to future
value. Loans that need to be
based on an ARV or higher
appraisal value won’t typi-
cally work for an asset-based
lender. However, we do have
clients who are rehabbers
compared to a bank. who own other free-and-clear
With MMG Capital, property, they then secure a
no income verifica- line of credit with us for the
tion is needed nor is purpose of purchase and re-
credit score or sea- habbing more property.
Chris Gleason
soning taken much
into consideration. The allure of their program
Recently, our editorial team spent time is that underwriting guidelines are not
reviewing some of the company’s pro- based on the borrower’s credit, income or
grams, which include private lending, trust seasoning, which truly opens up the play-
deed investing and unique investing vehi- ing field for many more investors. In real
cles, which offer short-term liquidity and estate transactions, time is truly of the es-
safety backed by real estate. sence, and Gleason explains how their pro-
We then asked Gleason to give us and gram can help investors move confidently
our readers a better understanding of how on offers and close quickly on deals.
their services can help leverage the as-
sets of their clients so they can grow their We take a very common sense approach
wealth more quickly. to lending. Asset-based lending has been
First, Gleason gives us a glimpse as to around for decades, but it was largely
who their typical “hard money” lending abandoned by most firms during the boom
client might be and shares some of the cri- years because anybody who could fog a
teria they look for when funding deals. mirror could get credit. Now we’ve ar-
rived back to an old school standard where
We see a very wide range of real prop- we’re lending realistic amounts against
erty investors who are looking for capital, realistic values and realistically taking
all the way from the most sophisticated into account the kind of trouble that our
investor down to the beginner. The inves- marketplace is in. It’s really a plus and a
tor who makes the best candidate for an minus for investors – only those who have
MMG Capital Loan is the investor with solid assets are able to obtain financing
at least moderate real estate investing ex- and “nothing down” scenarios don’t ex-
perience and a substantial balance sheet. ist anymore. But, for those who have the
MMG Capital is an asset-based lender, so net worth to support an asset-based loan,
we’re really looking for two things: hard there’s very little competition for them and
equity and net worth. We can be a great they can align themselves with a private
financing partner for a real estate inves- lender like us who will provide them quick
tor who is doing significant business and capital based on their current equity.
already has some substance to their bal-
ance sheet. Continued on pg. 61
PAGE 39 • 2010 reWEALTHmag.com
 Veteran Syndicator Discovers
Golden Opportunities in California
W
oodson “Chip” Philbin be-
gan his career as a securi-
ties broker, but he soon
left Wall Street
to sell “tangible” investments.
Fast forward 23 years later,
the Sacramento-based lender
and mortgage broker now has
a successful career as a real es-
tate syndicator.
Many professionals are lured
into the real estate industry
with a hope of one day purchas-
ing the very object they sell. At
first, Philbin, CEO of Philbin
Capital, wasn’t focused on his
own portfolio as much as those
of his clients. He was initially attracted to
the business as a commercial real estate
lender and mortgage broker because it
made financial sense in contrast to the high
volatility of the securities market.
“At one of my previous employers, the
management started a real estate investment
trust, got it listed on the American Stock
Exchange, and raised about $100,000,000
to do mortgage loans. They went through
the hundred million in about five years,“ he
recalls. “Here I learned that one of the main
objectives of those that manage REITS is
to generate management fees and not nec-
essarily safeguard their investors’ money.”
That experience, along with his experi-
ence as a stock broker and other stories
similar to ENRON, made Philbin wary of
paper assets. He explains: “Stocks have
limited true inherent asset value contrary to
real estate, which is tangible.”
Philbin, who was busy arranging funding
for multimillion dollar deals his investors
were securing, did not stay on the sidelines
for long. “I formed a partnership with ten
people I knew, and we made a hard money
loan to a small grocery store north of Sac-
ramento,” Chip says. He adds, “We loaned
the owner/operator about $1,000,000 at
11% for two years. I had $100,000 in this
deal and my investors provided the rest.”
One of the benefits of working in real
estate is the networking opportunities that
Realty411Guide.com
by Lori Peebles
come about in everyday affairs. Routine
business connections can turn into friend-
ships, which can then evolve into joint ven-
tures. That was exactly the
case for Philbin. His career
as a commercial mortgage
broker opened the way for
joint ventures with his as-
sociates and clients.
“I was referred to a well-
heeled investor by Comer-
ica Bank, who owned
a high tech company in
Santa Clara and needed
to refinance his plant. I ar-
Chip Philbin
ranged the loan and didn’t
hear from him for about
four years,” he recalls. But then one day,
opportunity knocked.
“He called me in to discuss another refi-
nance, this time a cash-out refinance. We
did some analysis on how much he should
borrow and I arranged another loan for
him. At that point we decided to become
partners and to purchase cash-flowing
commercial and multifamily property.”
The new partners joined forces and
funds, which led to the purchase of a 72-
unit apartment complex in Chico, Calif., a
property they still own today.
When questioned about his transition
from adviser to partner in his dealings with
clients, Philbin replies: “People have a real
need for trusted advisers who are experts
in their given industry. If you have a high
degree of integrity and put your clients and
investors ahead of your own interests, then
opportunities will present themselves.”
Although rehabbing tends to attract the
spotlight in real estate, Philbin shuns those
quick-turn deals and prefers to invest with
a five to seven year minimum holding pe-
riod. Because of his mortgage background,
when possible, Philbin prefers to refinance
the asset after an initial holding period so
that investors can retrieve their initial down
payment, leaving little or no cash in the deal
and magnifying returns. Philbin is partial to
owning retail centers, single tenant NNNs,
multifamily and industrial properties.
PAGE 40 • 2010 reWEALTHmag.com
His angel investor continued to be in-
volved in projects with Philbin and togeth-
er they built a solid portfolio.
“With him as my partner, I developed
three single-tenant NNN leased commer-
cial buildings, all leased with terms of 15
to 20 years, in which I placed fixed-rate
permanent financing right after completion
and occupancy by the tenants.”
Long-term buys may be his strategy of
choice, but make no mistake, cash flow to-
day is the goal when Philbin and his inves-
tors acquire a property.
His success record is impressive. “The
cash flow from this small portfolio is
nearly $400,000 annually, plus I was able
to finance out almost all of our entire cash
investment, so we have very little cash left
in these deals.”
The massive passive cash flow has been
a blessing, but Philbin admits it made him
a bit complacent. For the past several years
he’s been working primarily on his handi-
cap at the Northridge Golf Club in Fair
Oaks instead of pounding the pavement to
procure new investors.
But now that his primary angel investor
is retiring, Philbin is actively recruiting
new investor partners who are interested
in commercial investment opportunities in
the Northern and Central California mar-
ketplace.
The company prides itself in investing
funds into every deal alongside the partner.
He believes in full disclosure, low manage-
ment overhead, and welcomes partners who
are relationship-oriented and are seeking
long-term, tax-sheltered passive income.
While profits and returns are what inves-
tors strive for, Philbin stresses that build-
ing long-term business relationships is the
most gratifying aspect of the real estate
business.
“I really enjoy people and enjoy the real
estate business,” says the 29-year industry
veteran.
For questions regarding commercial real
estate, contact Chip at (916) 961-6832 or
visit: www.PhilbinCapital.com
 Real Estate Investments/Partnerships
“[Chip] is unique in that he has true professional understanding of all key
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He has been very open in his communications and honest to a fault in
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LQGLYLGXDOVZDQWLQJWRGRUHDOHVWDWHLQYHVWLQJµ
Gerald McIntyre - Partner
Visit our website at www.philbincapital.com
Realty411Guide.com
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Chip Philbin 916-961-6832 wlphilbin@yahoo.com
PAGE 41 • 2010 reWEALTHmag.com
 Success and Happiness in Life
by Sam Sadat, founder of Los Angeles Real Estate Investors Club
A re you a creative person? When
was the last time you came up
with a creative idea? But why
be creative? Why challenge the rules and
perhaps even appear stupid to others? Be-
cause creativity is the stuff of life. That is a
big reason, but there are other more reasons
to consider. Another reason is change. We
all know the only constant in life is change,
albeit we tend to resist change. (In fact, the
only person I know who likes “change” is
a wet baby.)
When things change, new information
emerges, which leads to a brand new set of
problems. It’s proven time and time again
that it’s no longer possible to solve today’s
problems with yesterday’s answers. So you
have a decision to make: You can either
complain about how difficult things have
become or employ your creative juices to
come up with new ideas, new solutions,
Socrates once said:
“An unexamined life
is not worth living.”
and new paradigms.
This economic turndown has vastly influ-
enced our lives in recent years. It has forced
us to stop and examine our lives. Socrates
once said “an unexamined life is not worth
living.” So, I think this recession may ulti-
mately prove to be a good thing because we
are learning valuable lessons. What would
make it even better is if we further examine
our spending habits and reasons why we
tend to live beyond our means. This kind
of introspection is needed if we are to attain
financial freedom ourselves and to save our
great country from becoming another great
civilization that was.
To affect positive change we needed an
impetus and we got one, the Subprime
Meltdown, the biggest economic downturn
since the Great Depression (or as I call it,
the 9/11 of the business world). It is here
Realty411Guide.com
for a few more years,
but to benefit from it
maximally
new knowledge and
requires
applications. Remem-
ber how our lives have
changed since the 9/11?
Well, the business rules
of engagement have
also changed drasti-
cally. Real estate has
taken the biggest blow,
and as usual, our gov-
ernment’s answer to every problem is more
regulation. In contrast, I advocate educa-
tion over regulation. But you can’t find
that kind of knowledge in any accessible
or even comprehensible fashion in our bu-
reaucratic system.
To obtain this kind of knowledge required
for prosperity, you need to attend and net-
work in real estate meetings
and seminars. Venues such as
our real estate club, Los Ange-
les Real Estate Investors Club
(LAREIC), will provide you
with the new knowledge on
how the game is being played
now. Once you know what’s
working in today’s market,
you’d be able to further develop your cre-
ativity and capitalize on it more effectively.
Without this new information, you’re lim-
ited to old solutions, which are ineffectual
in our fast-changing world.
I believe there are ways to enhance your
creative powers. Here are a couple of sug-
gestions from two highly successful peo-
ple.
Steven Jobs was asked why some people
are more creative than others. He replied,
“Innovation is usually the result of con-
nections of past experience, but if you
have the same experiences as everybody
else, you’re unlikely to look in a different
direction.” For example, in college, Jobs
took modern dance classes to meet women.
What he didn’t realize was how much he
learned about movement and perception
in those classes, which came handy years
PAGE 42 • 2010 reWEALTHmag.com
later when he worked for the
Atari Corporation. Thanks
to his modern dance classes,
he was able to calculate how
much resolution of movement
was needed in their video
games.
The real estate entrepreneur
Frank Morrow explains that
he got his entrepreneurial
education while attending the
graduate school of business at
Stanford. Although he took
all the required courses in marketing, fi-
nance and accounting, he said. “I learned
more about business from a drawing course
than anything else. My teacher taught us:
‘All art is a series of recoveries from the
first line. The hardest thing to do is to put
down the first line. But you must.’ The
same is true in business. You must act. A
lot of business school-types analyze things
to death and never get around to acting.
Perhaps more of them should take drawing
lessons.”
I believe your mindset is more important
than nuts and bolts. We have plenty of real
estate knowledge at our monthly meetings
and seminars to arm you with helpful tools
to succeed in this market. But I challenge
your beliefs relative to success. Remem-
ber that unless you break with the old,
you won’t let in the new. In other words,
Light (education, abundance and love)
won’t come into your life until you show
the courage to literally kick out Darkness
(ignorance, scarcity and fear.)
So expand your horizons, step outside
of what’s considered normal, break the
boundaries of what seems reasonable, and
act upon your knowledge. There’s never
been a more important time in our coun-
try’s history (or the world for that matter),
than the present. What we do today will af-
fect humanity and shape our future destiny.
So, let’s make it a good one.
Kindest regards,
Sam Sadat — sam@samsadat.com
Be sure to visit online: www.LAREIC.org
LARGE EQUITY AND POSITIVE CA$H FLOW
DPW helps investors create wealth through Real Estate Investments. We will show you how to become
a successful investor. We take away all the guess work because real estate investing should be effortless. We
will do everything we can to make sure our investors are taken care of and are educated on the entire process.
Our goal is to make real estate investment easy for the average investor through our various investment programs.

?
How to Get the
Bigger Better
by Kathy Fettke
T rying to get
a good deal
in today’s market
can be frustrat-
ing. It might mean
making a hundred
offers before you
get the one that
makes sense. And even if you
have cash and will close “as
is,” you still might lose out.
Or you might end up with the
property and find out later you
paid too much or got stuck with
a lemon.
So how are the experienced
investors getting deals with
less effort? At Real Wealth Net-
work, we have found the power
of numbers. Our teams buy in
bulk directly from the bank.
The banks love this because
they can move more property
at once, even if it means slash-
ing prices. In most cases, the
properties never make it to
the open market before we’ve
hand-picked our favorites. It’s
tough for an individual to com-
pete with a bulk purchase.
We also pool funds to pick
up almost-complete subdivi-
sions or multi-family proper-
ties. Again, this is tough for the
Deal
individual investor
because the price tags
are much higher, but
the deals are sweeter.
For example, we just
wrote down a $12.9
million FDIC loan to
$3 million on 27 al-
most-finished water-front con-
dos in Portland. Investors will
make over 40% in one year.
This is truly the greatest
wealth transfer in history. Op-
portunities abound, and to-
gether we can make it happen.
Mistakes happen when inexpe-
rienced people jump into some-
thing they don’t understand.
That’s why so much wealth has
been lost over the past decade.
You don’t have to go it alone,
learn from the experts.
Real Wealth Network brings
new and experienced investors
together to share information
and learn from each other.
Our site has articles, videos,
blogs, podcasts and downloads
to help educate our members to
make smart investing decisions
during this once-in-a-lifetime
opportunity.
For information, visit:
www.RealWealthNetwork.com
 CashFlowCows.com Alternative Economics™
Sales and Referrals since 2006
- S
CA nwide
Natio
in
Basedrvice
e Club Launches in CA
C
alifornia is
Our Personal Team Can Help You one of the
Start or Grow Your RE Portfolio most active
Sign Up Online for e-Mail Alerts! states for
investors. Even during
Over $7 Million in Sales! this current economic
We help clients every step of the way...
downturn, the state is
still a powerful economy
We Even
Hel
You Manag p
in the global market. To
e
After the
Sale! meet the demand for in-
vestor education, a new
investment club system
Owned by Linda Pliagas was recently launched
Her credentials include: in California by Roger
Landlord since 1994
Roger Ritchie Leads New Group
Licensed Real Estate
Sales Agent since 2000
Out-of-State Landlord
since 2004 - 5 States
Founder & Publisher of Ritchie, a Los Angeles-based real estate
Realty411 since 2007 License # 01355569 investor and frequent club-circuit guest.
“I’m NEVER too Busy for YOU!” The Cerritos Investor Education Club,
310.994.1962 • pliagas@msn.com founded by Ritchie, however, goes way
beyond the typical real estate club. The
Sign Up for VIP Listings @ CashFlowCows.com financial education training is based on
Alternative Economics™, a personal
system of financial growth education. It is
SAM GREEN Photography
designed to reveal hidden assets and apply
them to alternative investment strategies
using personal money rules that engage
Personal Photographic Artist four asset-acceleration principles, through
three financial growth stages.
Ritchie, who has regularly attended real
estate clubs for years, chose to align him-
self with the National Strategic Investment
Corporation (NSIC). His new club, the
Cerritos Investor Education Club (CIEC),
is the first California chapter. Ritchie’s
“Take Care, Keep Smiling” goal is to form a club with diversified
investment strategies to provide his mem-
bers with “alternative investment strate-
gies, not just real estate,” he says.
Ritchie has spent a lot of time and
resources in developing his investment
game plan. He is a David Lindahl graduate
and also learns through the Joel Block’s
* Headshots * Portraits * Personal Photo Shoots
syndication system. It is at Block’s event
* Boudoir Photo Shoots * Private Parties * Special
Occasions * Red Carpet Events * Children * Pets where he met NSIC founder, Steve Het-
tema. Ritchie is also a member of All
(310) 947-6261
Sam@SamGreenPhotography.com Cities Network, a collection of networking
www.SamGreenPhotography.com groups. Currently, Ritchie is managing
www.facebook.com/SamTheManGreen partner of an investment syndication group
Realty411Guide.com PAGE 46 • 2010 reWEALTHmag.com
by Linda Pliagas
that owns a 112-unit apartment
complex in Florida.
Ritchie wholeheartedly
believes in the importance of
diversification and says others
feel the same way. “This breadth
of investment strategies attracts a
much larger segment of my com-
munity,” he says. “Being built
around Alternative Economics™,
I am providing applicable eco-
nomic alternatives to help mem-
bers develop their own personal
system of financial growth.”
Through monthly meetings, Ritchie says
CIEC will provide educational products
to educate investors about a broad range
of investment vehicles, both locally and
nationally.
CIEC is now part of what makes up a
growing investor community known as the
National Strategic Investor Group (NSIG),
whose clubs are based on the NSIC club
model.
The NSIC is a company teaching invest-
ment and economic alternatives.
In addition to its readily applicable
financial education, NSIC provides
resources, products, services and oppor-
tunities through local and virtual investor
clubs.
Ritchie is excited about CIEC’s launch
and he credits Hettema’s office with
providing him with the tools needed for an
association to succeed.
“ Not only does NSIC provide me with
all the resources to start and manage
my club, but the NSIC model shows me
exactly how to successfully establish my
club step by step.”
To learn more about NSIC, visit online
www.ciec.nsicgroup.com and download
the free Alternative Economics™ e-book.
For information about CIEC, contact:
Roger Ritchie, Club Leader of the Cerritos
Investor Education Club, (714) 793-3167,
roger.ritchie@nsicgrouop.com
 Triple Net Houses, pg. 9
They pay no expenses. If they
finance the house for example
at 5.5% or 6%, you’re going to
get that spread using the bank’s
money. If you buy a house for
$60,000 and you put down
20%, $12,000 on the $48,000
you’re borrowing, you’re going
to make 3.5% but that’s not us-
News about Julian’s NNN
model has spread quickly large-
$/7(51$7,9((&2120,&6Œ
ly through referrals and online 7+(62/87,21727+()$,/,1*75$',7,21$/
connections. “We have a blog, ),1$1&,$/3/$1,1$0(5,&$
we do webinars, we do confer-
ences just like your magazine.”
Now that Julian has estab-
7KH&HUULWRV,QYHVWRU(GXFDWLRQ&OXE
lished his NNN presence in
the investment market, his new
&,(&LVWKHILUVW&DOLIRUQLDFKDSWHURI
ing any of your money. You’re goal is to expand conserva-
WKH1DWLRQDO6WUDWHJLF,QYHVWRU*URXS
not making 3.5%; you’re mak- tively. He explains: “We want 16,*ZKLFKDWWUDFWVDQGHGXFDWHV
ing an infinite return. It’s the to grow fiscally responsibly. SDVVLYHLQYHVWRUVLQ$OWHUQDWLYH
bank’s money. Now you’re go-
ing to get 9.1% on the balance,
“This year we’d like to do about
120 houses, about 10 a month.”
for a total return of 17%.”
Obviously, a lot of planning
went into Julian’s investing
modes. His personal experi-
ence as an investor started in
1975, and he’s been a real es-
tate broker since 1979. Born in
New York City, he moved to
Dayton with his parents while
he was in high school. He later
attended Wright State Univer-
sity. Julian has been married
for 36 years. His wife is a re-
tired public librarian who still
substitutes when needed. They
have one son, Paul, who is 26
and is trained as a chemical en-
gineer.
“But guess what?” Julian
asks, and proudly replies: “He’s
working for us now as an op-
eration’s manager. It’s a family
affair.”
Realty411Guide.com
This year we’d like to do about (FRQRPLFVŒ$(
120 houses, about 10 a month.
We’re not quite at that target
but we’re real close. It’s grow-
ing in the right direction. Next
year we’d like to do 150 to 160
houses.”
As they continue to grow
and prosper, Julian expressed
his thoughts about expand-
ing to other locations or cities.
“In another year or so we plan
to move to Cincinnati, which
would be the logical city. It is
about 50 miles south of us with $/2))
&,
similar demographics.”
(5
63(
In real estate investing, slow
and steady wins the race, and
Triple Net Houses would win
the Innovative Risk Reduction
Award if they were to establish
one in our industry.
6LJQ8S)RU2XU0RQWKO\
For more information, please 0HHWLQJVLQ&HUULWRV
visit ww.TripleNetHouses.com DQG5HFHLYHD)5((
H%RRN

ZZZFLHFQVLFJURXSFRP
&217$&7


URJHUULWFKLH#QVLFJURXSFRP
PAGE 47 • 2010 reWEALTHmag.com
 ,

,
,
M
any Investors gamble to invest, Woo says he bases his compa-
their financial future ny’s approach on solid, factual data. “Our
and retirement dreams team constantly seeks out markets that
on capital appreciation. can weather the storm based on strong job
Michael Woo, chairman growth and economic or population expan-
of Longfin Investment Solutions, thinks sion.”
that is unwise. “It’s time to get paid month- Woo began his career as a real estate
ly instead of gambling on a 20-year pay investor in 1995. Before eBay was ever in
out,” he says. the picture, Woo sold and marketed collect-
As chairman of Longfin Investment Solu- ible toys as a way to raise capital for his
tions (LFI), Woo created a turn-key invest- first investment. In two years, Woo raised
the CEO of ER Real Estate Investments.
Reynolds purchased her first rental at age
24 for $10,000 cash. Since then, she has
been involved in numerous transactions
and she is also currently an out-of-state in-
vestor. Reynolds enjoys assisting others in
also maximizing their potential through the
purchase of passive income real estate.
“My core belief is that real estate creates
wealth, and wealth is effectively amassed
through real estate acquisitions,” she says.

Stop The Gambling!

Why Bet on Future Appreciation When You Can CASH FLOW Today? by Lori Peebles

ment system for investors who seek cash $50,000, a down payment for his very first Both Woo and Reynolds have great na-
flow in emerging markets. “Our properties property. Since then, Woo has been in- tional resources accumulated from years of
are totally rehabbed, with existing property volved in hundreds of transactions. personal relationships, which they pass on
management, and often His skills in to their clients. They also have established
already have renters in Mike Woo with “Rich Dad, Poor Dad” the industry did relationships with private equity lenders
place,” Woo says. “Our founders, Robert and Kim Kiyosaki not go unnoticed. for financing. “Lending is not a problem
average NOI (Net Op- In February, Woo for LFI and we do not want financing to be
erating Income) rate of was honored as the reason you do not take action toward
return is between 25% the recipient of investing,” says Woo.
to 36% ROI (Return Rich Dad edu- LFI also created an affiliate marketing
on Investment) with cation’s Hall of partner program, which offers profit shar-
10% to 12% cap rates. F a m e   Aw a r d , ing.
Erica Reynolds
Why wait for tomor- presented  by R e y n o l d s  e x -
row when you can cash “Rich Dad Poor plains, “Being a
flow today?” Dad” author marketing partner is
An avid fisherman, Robert Kiyosaki. a great way to join
Woo, who is a native Woo was hon- the team and partici-
of Southern California ored for his role pate on many great
and graduated from Torrance High School in increasing financial intelligence. In ad- deals. As a market-
and San Diego State University, named the dition, he was acknowledged for dedicat- ing partner, we offer
company Longfin to commemorate a fish- ing his time to helping others improve their great referral fees,
erman’s special name for the albacore. own lives. equity partnerships
“Albacores are renowned by sportsmen all “We teach real estate investing funda- and other benefits.”
over. They are a much sought-after game mentals, including having the right mind- Lately, Woo and Reynolds have been
fish with attributes of being fast-moving set and goals,” Woo explains. “We want to busier than ever attending many network-
hunters that operate together to achieve make each investor a better person and ex- ing events and also hosting their “Stop
goals,” he explains. tend their investment dreams further than the Gambling” seminars for the public in
Woo’s individualism also positively im- they could have ever imagined.” Southern and Northern California. LFI is
pacts his investment philosophy. In addition, Woo says they teach inves- also organizing investment road trips to In-
For example, while many investment bro- tors to understand demographics, locations, dianapolis, one of their target markets.
kerages only deal with one specific type cash flow and ROI.
of property, such as single-family homes, Recently, Woo expanded LFI and added To learn about the “Stop the Gambling”
Woo’s investment strategy is to find deals a dynamic partner: Erica Reynolds. She educational seminars, contact Longfin
across the entire market spectrum. has been appointed as vice president and Investment Solutions at: (949) 388-0678.
Instead of letting headlines predict where marketing partner. Additionally, she is also Visit LFI at: www.longfininvestments.com

Realty411Guide.com PAGE 51 • 2010 reWEALTHmag.com

Short Pay
Refinance
The Solution for Homeowners who
have Underwater Mortgages
by Shahid Habib and Ketan Naran
H
omeowners  all
across the U.S. are
feeling stressed
out due to a decline in the
value of their homes and
the fact that they now owe
the bank more than their
property is worth. However,
there is hope through an option
known as short pay refinance,
which is a great solution for
them, if they qualify.
According to a report pub-
lished in May 2010 by First
American CoreLogic, a real es-
tate information company based
in Santa Ana, Calif., “more than
11.2 million, or 24% of all resi-
dential properties with mort-
gages were in negative equity
at the end of the first quarter
of 2010.” Out of that number,
in California alone, more than
2.4 million homes, or one third
of all mortgages, have negative
equity.
The underwater mortgages
and negative equity pose a
roadblock to a housing recov-
ery because the underwater
mortgages are more likely to
fall into default leading to a po-
tential foreclosure by the bank.
Most banks have already been
taking big losses on foreclosure
and short sale properties and
are considering other options
as well.
Short Pay Access, a company
based in San Ramon, Calif.,
is able to help homeowners
anywhere in the U.S. through
the best short pay refinance
program available today. The
company does not charge any
Shahid Ketan
up-front fees to homeowners. It
offers a solution for both banks
as well as for the homeowners.
The homeowners get to keep
their home with a lower princi-
pal balance and lower monthly
mortgage payments more in
line with the current value of
their home, and the banks get a
chance to “clean-up” their bal-
ance sheet by getting a property
completely off their books.
Banks are becoming more
willing to accept a short pay
refinance especially if the bor-
rower is current on their mort-
gage but is experiencing some
type of short-term financial
difficulty or the interest rate on
the borrower’s current loan is
about to increase.
A short pay refinance also
provides the bank with an infu-
sion of “cash,” which increases
their ability to invest in other
opportunities or to lend out.
Banks are in the “lending”
business and not the real estate
business.
Unlike a loan modification or
a short sale, which sometimes
requires a borrower to be delin-
quent on their mortgage pay-
ments, the short pay refinance
program follows standard lend-
ing guidelines and only works if
the borrower has a clean recent
mortgage payment history.
1. The mortgage needs to be
more than the current market
value of the home.
2. Borrowers need to be current
on their mortgage – no late pay-
ments.
3. The borrower’s credit score
must be 620 or better.
4. They must have verifiable
income.
5. The prop-
erty must be
the borrower’s
primary resi-
dence.
Short Pay
Access works
with the lender
in order to complete the short
pay refinance and gets the lend-
er to write off a portion of the
loan amount. A short pay refi-
nance gives homeowners the
ability to refinance their homes
at the fair market value. The
process involves paying off the
current lenders loan at fair mar-
ket value and then refinancing
Realty411Guide.com
their home with a new lender at
the current market value.
The Short Pay Access team
Do You Feel
consists of experienced nego-
tiators who have carefully built Trapped by Your
working relationships with
lenders. The negotiating team Current Mortgage
is well versed in the lender’s
requirements and preferences and the Loss of
Your Home's Value?
and uses this experience to help
Let us help you
'Short Pay Refinance'
a new option with
NO Upfront Fees!
the homeowner without wast- (This is not a loan modification or a short sale)
ing any time dealing with un-
knowns.
For more information, contact
Short Pay Access online at
www.ShortPayAccess.com or
call (925) 309-6109 for a no
obligation free consultation.
It could help you to
Keep your home
Lower your principal balance
Lower your monthly payment
Eliminate Negative Equity
ket to lawyers who specialize
in family law, estate planning
and probate. Also, don’t over-
look paralegals who can be a
wonderful source of leads.
#3: Your Target Zone: For
maximum success, farm your
area just as a REALTOR
would. Posting signs around
your farm area, as well as
displaying a clever advertise-
ment on your vehicle can lead
to success.
#2: Make Many, Many Offers!
Contact us today to
An aggressive investor should find out if you qualify
be making at least 10 offers a
day or 200 offers per month.
925-309-6109
How do you compare? Well,
then please don’t complain www. Short Pay Access .com
that you can’t land a deal!
PAGE 53 • 2010 reWEALTHmag.com

by Linda Pliagas & Lori Peebles
downpayment for a residential purchase is
tional roadblocks, such investors annually, he says they can deliver
as the number of existing properties at deep discounts.
mortgages one has, or a Additionally, since Reedy knows that
lack of seasoned funds cash flow and built-in equity at purchase are
or less-than-stellar credit primary components of a great investment,
scores are simply non- he says they “are willing to leave enough
issues with their private profit in the deal for the client to have great
financing program. cash flow and success, which leads to re-
So what’s the catch? A larger-than-normal turning clients and more business.”
To handle the management of his own

STOP! Before you purchase
that shiny, new luxury
vehicle — the one that’s going to plum-
required (30% to
50%), which is ac-
tually a percentage
rentals, as well as
Craig Jennings and Jim Reedy. t h e   b u r g e o n i n g
empire of his cli-
met in value as soon as it’s driven off the that is common these ents, which now
lot — think about buying a rental income days in commercial number close to
property instead. real estate transac- 1,000 properties,
That’s right, for about the same price tag tions. The property Reedy relies on his
as a 2010 Mercedes-Benz M-Class (MSRP: is then paid off in 60 staff of 15, which
$45,700), an investor can purchase a rental months (amortized includes four full-
property in Memphis, Tenn, instead. Plus, in seven years). In time leasing agents
they can pay it off completely in five years the meantime, in- and numerous
— the same time as the car. vestors can expect a independent con-
This turbocharged investing structure, bit of monthly cash tractors.

Keep the Older Car|Buy a Rental Instead

coined the Short Term Retirement pro- flow to help them maintain the property. In 2008, Craig Jennings was recruited
gram, is marketed by Jim Reedy, CEO of It’s a bullish investing program offering to handle investor relations. Jennings es-
Memphis Investment Properties, LLC, a easy terms and, best of all, no restrictions. tablished himself with Reedy as a talented
full service real estate investment broker- When Reedy found out about the pro- wholesaler, often providing Reedy with
age and management company. gram, which was developed by Robert outstanding deals for his clients.
Memphis Investment Properties (www. Feol, a local real estate finance expert, he Shortly after, the team was joined by Curt
memphisinvestmentproperties.net), found- knew he wanted his company to have ex- Davis, who is now a leading sales execu-
ed in 1985 by Reedy and his wife, Debi, clusivity. Reedy says the program was so tive for the company. Together they field
is an exclusive provider for the Short Term good, he wanted to keep it all to himself. requests and answer questions from in-
Retirement (STR) program in the Memphis Real estate has been Reedy’s passion and vestors around the nation, and even from
metro area. focus for 34 years. He majored around the globe.
The team relaxes after a meeting.
T h e  m o s t in real estate at the University When asked where the majority of Mem-
enticing as- of Memphis and has been sell- phis Investment Properties’ clients come
pect of STR ing homes since his senior from, Reedy quickly replies that most of
is the speed year. their investors come from the West Coast,
in which an “I fell in love with real estate California in particular. The East Coast also
investor can during college,” he admits. brings in a lot of activity. Tennessee is also
have their “The sky was the limit.” gaining popularity with investors living
rental com- Reedy says that from per- outside of the United States, as well as with
pletely paid sonal experience he knows recent U.S. immigrants. Reedy says lately
off, which investing in real estate is more he is seeing “lots of foreign activity.”
then maxi- lucrative than working as a For Reedy and his team, real estate in-
m i z e s  c a s h REALTOR®. His family cur- vesting is not just a business, it’s a lifestyle.
f l o w.  T h e i r rently own and manage an In fact, his wife, Debi, is chief operation
program also offers tremendous flexibility, impressive personal portfolio of more than officer, and one of Reedy’s five children
enabling people who normally would not 300 single family rentals. is also a top producer in her market in the
be able to qualify for a property a chance Because Reedy and his team are active
to build wealth by owning rentals. Tradi- real estate investors, servicing hundreds of Continued on pg. 62

Realty411Guide.com PAGE 55 • 2010 reWEALTHmag.com

 by Crystal Han of 360 Investments™ | edited by Scott C. Seckel
Who’s On Your Team?
T
hese days with the current economic
and credit crisis, it’s not what you
know, it’s who you know. 360 In-
vestments™ realizes that investing in real
estate is a team sport. That’s why we have
built local power teams in major cities
across the country. Having the right indus-
try professionals on your team will make
all the difference in your investing success.
Here is a list of important team members to
have on board:
•Get a mentor, with a proven track record,
who has successfully acquired the type of
real estate investments you want to have.
Your local real estate investment associa-
tion, abbreviated as REIA, may be a good
place to find a mentor. Make sure you con-
tribute to your mentor if you are not pay-
ing for their time to teach you and take you
under their wing.
•Find a REALTOR® who can give you in-
formation about the local market.
A REALTOR® can provide you with
comparable sales (COMPS), current mar-
ket values, average days on market (DOM),
appreciation/depreciation rates, and other
valuable information. Provide leads to your
REALTOR® by sending potential clients
their way and make sure they receive their
Realty411Guide.com
well-earned commission.
•A mortgage professional is essential. They
can be a direct lender, bank or mortgage
broker. Shop around until you find one who
can tackle creative ways to finance a deal.
Ask about their loan fees and programs.
It’s critical to find out about their qualifi-
cations, seasoning and percentage-down
requirements.
These professionals can also lead you to
private and hard money sources. Always
ask for a Good Faith Estimate (GFE) and
compare statements. Find out their average
time to fund and close a deal since time is
money!
•The right title, escrow or
closing attorney, depending
on the state, is your best
friend. Interview several
until you find one that un-
derstands unconventional
ways to transact real estate
deals. Ask them if they are
familiar with assignments,
double or simultaneous
closings. You want some-
one who can draft up notes,
deeds of trust or mortgages.
Title representatives can
also provide you with ac-
cess to title reports, foreclo-
sure listings, and farming
packages made up of mail-
ing lists and labels for mar-
keting purposes.
•You will need several at-
torneys on board, who specialize in differ-
ent areas. Engage an asset protection at-
torney who understands entity formation, a
local real estate transactional attorney who
can review your contracts, and an estate
planning attorney to pass your inheritance
on to your heirs without costly and time-
consuming probate proceedings.
•Real estate investments offer huge tax
benefits. It is important to get a highly
qualified tax professional, a certified pub-
lic accountant (CPA), or a tax attorney who
understands the tax codes. Choose a pro-
fessional who also invests in real estate.
They will know the maximum deductions
PAGE 57 • 2010 reWEALTHmag.com
available to your type of business.
•Get an insurance agent who will issue your
policies for the best protective coverage in
the state where you own real estate at the
best prices. Always compare rates.
•A reliable general contractor will give
you work estimates and project bids. These
quotes are tools with great negotiating
power. Request a copy of their license and
check with the state board to make sure the
contractor is in good standing. Get plenty
of references and do not pay in advance.
•Locate a certified property inspector who
will inspect your properties and provide a
detailed inspection report and photographs
of their findings. The report can be used for
negotiating the purchase price. It can also
be used as a walk-away clause.
•Appraisers are priceless in this current
market. They provide market values, com-
parable sales, and draft up appraisal reports
on their findings. Please note, with the new
HVCC guidelines, lenders choose their
own appraisers when determining value for
lending purposes.
•Property managers and management com-
panies are the key to long-term investing
success. Make sure to get lots of referenc-
es from other property owners. Review the
property management agreement carefully
and make sure you understand everything
clearly. Find out the management fee, ad-
vertising costs, service call fees, average
turn-over costs, vacancy rates, eviction
rates, total number of units managed, num-
ber of years in business, term of agreement,
monthly statement schedule, online system
accessibility, and direct deposit options.
Always retain copies of lease agreements
with tenants. It’s your job to manage the
property manager!
•Last, but certainly not least, get an ac-
countability partner and a local network of
investors who will provide you with ongo-
ing support and updated information on
other industry professionals, the markets,
and other investment opportunities.
Building a profitable real estate invest-
ment portfolio takes a strong team, and
more importantly, a great team leader who
selects the right team members!
 The Ultimate Cash Flow Buying Tour, pg. 37

The Clothiers discussed their own per- about $350 monthly. very first day of the tour.
sonal story of their quest for passive income The elegant banquet room where the Kent Sr.’s luring promise that I would
and presented their research on the market. education took place was filled with many never see anything quite like this proved to
Then they introduced the members of their Californians like me, including a young be true. The action that was taken on that
team. After a brief networking break, they couple from Burbank who rented a rec- day was mind-blowing. A total of 29 homes
passed out a large, white sealed envelope reational vehicle and drove nearly 2,000 were sold, all sight unseen. I was captivated
with the information everyone was waiting miles to buy a property in Memphis. by the volume of deals done as well as the
for: The Deals. “We left on the Fourth of strategies they spoke about, such as their
Guests were more than July and plan on touring dif- guerilla-marketing leasing system.
eager and ready to buy a ferent cities for two weeks Here is the creative way they fill vacan-
cash flow property based after this,” Declan and Shaun cies: MemphisInvest.com hires multiple
on an address, a photo- Hoare said. The new investors leasing agents on commission to show and
graph and numbers. Most purchased a three-bedroom, rent out their client’s property. A total of
rental homes cash flowed two-bath brick home on the four signs are placed on the lawn, each with
Guests listen to Kent Sr. a different number, each reaching a distinct
agent. Competition is created. Each leasing
agent is on high alert: If they want to get
paid, they have to be the first to answer the
phone and show the property.
Another management technique that re-
ally stood out is the system they have of
calling their clients just to touch base. Once
a month, investors receive a status report,
even if there is nothing wrong with the
property.
“If a client has to call us to check on their
property, then we are not doing our job,”
Chris explained to the audience.
Our group saw their four-sign leasing
AUGUST SCHEDULE system on the second day of the tour. On
that day, we hit the road on two buses and
August 4, 2010 August 24, 2010 saw numerous sample properties.
6:30 to 8:30 pm 6:00 to 8:00 pm We saw houses in all states of renovation,
Pasadena Library Valencia Library from the stinky and messy to the shiny and
285 E. Walnut St. 23743 West
Pasadena, CA 91101
fresh. The rehabbed homes featured hard-
Valencia Blvd.
Valencia, CA 91355 wood floors, soothing earth-tone colors,
August 5, 2010 new tile and new countertops. The quality
6:00 to 8:00 pm August 25, 2010 of their remodel is a testament to Kent Sr.’s
Torrance Library 6:30 to 9:00 pm perfectionism and attention to detail.
3301 Torrance Blvd. LA Real Estate After attending the tour, it became clear
Torrance, CA 90503 Investors Club that I was in the middle of one of the best
Beverly Hills
August 10, 2010
investing markets in the country, and in the
Country Club
5:30 to 7:30 pm 3084 Motor Ave. presence of industry leaders. If your goal is
Angela Iacobini Los Angeles, to purchase a quality rental in a burgeoning
Library CA 90064 market and have it managed by a proactive
4900 Clark Ave. and creative team, then be sure to pencil in
Lakewood, the next The Ultimate Cash Flow Buying
CA 90712 Tour on your calendar.

Don’t Miss the Next Tour

* September 24 & 25 *
Space is Limited, Reserve Early
1-877-773-9998 or 1-901-751-7191
http://www.MIBuyingTour.com
or http://www.MemphisInvest.com

Realty411Guide.com PAGE 58 • 2010 reWEALTHmag.com

 A Visit to 12 Rounds, pg. 30 Secrets from Sensei, pg. 30
More recently, an out-of-town owner of
a vacant home began to receive citations
from the city due to the blighted condition
of a property she owned. The woman no
longer had a need for the home, which had
been broken into and vandalized. Instead
of having to pay additional fines or incur
a large expense to fix the abandoned prop-
erty, she opted to sell “as-is” to Sensei at a
45% discount, and Sensei flipped the prop-
erty using a double-close technique to a
rehabber. Sensei used no money, no credit
and no loans, just pure wholesaling.
Yes, a profit (typically larger than most
real estate transactions) will be made for
wholesaling a property as it should be. An
Wholesaling
“does not require
cash, credit or a
license, which
equals NO RISK.”
investor is providing a creative solution to
the owner of a distressed property and/or
the owner may be distressed. Having a dis-
tressed situation creates an opportunity for
the investor to help and profit as well.
Sensei reminds his devotees that in to-
day’s flooded foreclosure market, whole-
saling is a service that is needed more than
ever. Sensei’s mindset of placing people
before profit is the philosophy he carries
with him when he approaches any deal and
in his own dealings with people.
“Help first,” he stresses, adding, “You
will be blessed with rewards later.”
Keep the Flame Burning!
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#4: Attorneys and Paralegals: Be
sure to market to lawyers who spe-
cialize in family law, estate planning
and probate. Also, don’t overlook
paralegals who can be a wonderful
source of leads.
#3: Your Target Zone: For maximum
success, farm your area just as a
REALTOR® would. Posting signs
around your farm area, as well as
displaying a clever advertisement on
your vehicle, can lead to success. Expertise:
Retail
#2: Make Many, Many Offers! An ag- Foreclosures
gressive investor should be making Short Sales
at least 10 offers a day or 200 offers Agreement for Deeds
per month. How do you compare?
Apartments
#1: Piggyback Your Deals: Don’t be REOs
afraid to partner up and share your Auctions
deals with other wholesalers. The Subject-to
more wholesalers in your database, Lease Options
the easier it is to share buyers and
sellers. Don’t be greedy and dishon-
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PAGE 59 • 2010 reWEALTHmag.com
 David Lindahl, pg. 7
them deals). I learned what they were look-
ing for in a property. And whenever I found
something in common among investors, I
knew I was on my way to developing a sys-
tem for creating wealth with real estate.
My first building was small three-unit
flat. But it was a “profit snowball” that put
everything in motion and would lead to an
avalanche of income.
Within six months I had nine proper-
ties. At the end of my first year, I owned
11 small apartment buildings, giving me a
positive cash flow of $9,700 per month. I
was motivated!
Millionaires Are Not Landlords
It surprises some people when I say that
my key to moving into the major leagues of
real estate investing — what skyrocketed
me from owning just a handful of small
buildings to controlling more than 300
properties — was my decision not to be a
landlord. I would do no “hands-on” work.
Knowing how to invest in apartments
without personally dealing with tenants is
essential to becoming a multimillionaire
investor.
I never deal with tenants personally. I
never personally fix leaky faucets. I don’t
mow lawns. I turn all the landlord duties
over to management companies. A good
management company makes you money
and should be viewed as an income genera-
tor, not as an expense.
Today I control over 7,400 units. That’s
7,400 checks from tenants. My monthly
cash flow is greater than what many people
make in a lifetime.
But I almost never got started because
of a few misconceptions that most newbie
investors face.
4 Misconceptions That Can
Cost You Millions
Some notions about investing in apart-
ments are as outdated and flat-out wrong as
thinking the world is flat. Yet they continue
to hang on and stop thousands of investors
from taking advantage of the huge money-
making potential that apartments hold.
Misconception #1: Small investors
should start with single family homes be-
cause there’s less risk.
Apartments can be the safer way to get
started. If your tenant moves out of a single
family house, your property sits empty. The
mortgage isn’t going to stop until you find
another tenant. However, if a tenant moves
out of an apartment complex, the income
continues to flow from other units.
Misconception #2: Apartments are more
difficult and time-consuming than single-
family houses.
Think of it this way… does buying a
Porsche take exceedingly longer than buy-
ing a Kia? No. It’s the same basic process.
With apartments, you use largely the same
methods as with single-family homes. And
where there are differences, I’ve developed
systems that clearly spell out what needs to
be done and when.
Misconception #3: You need stellar per-
sonal credit and high income to buy apart-
ment houses.
When you buy apartment
houses, lenders focus on the
cash flow of the building, not
your personal income stream.
If you find a building with a
strong positive cash flow, a
building that pays off the loan
without relying on you, then
you have a the foundation of vi-
able deal. The math is not com-
plicated. I’ve created a work-
sheet that lets me know within
seven minutes if a property is a
viable investment — so simple
a fifth grader can do it.
Misconception #4: Investing
in apartments means dealing
with tenants.
It has been years since I
spoke with any tenant. But
you don’t want to replace one
headache (dealing with tenants)
with another headache (dealing
with ineffective management
companies). So I created a pro-
cess that allows me to “manage
the manager” effectively and
profitably.
Strong Systems Make
Strong Investors
Only take advice on invest-
ing in apartments from some-
one who is making millions
of dollars practicing what they
preach. I buy apartments al-
MMG CAPITAL, pg. 39
Whereas the majority of
banking institutions sell their
notes, the company typically
holds all of their notes until
maturity.
MMG Capital prides itself
on doing business differently.
However, Gleason says the cost
of their private money is com-
parable to that of most other
private money lenders.
Nowadays, investors can
expect a total cost for a loan
to be in the neighborhood of
anywhere from 15% to 20%
per annum, that includes the
cost of interest and fees. Most
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With their flexible lending
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writing decisions of real people •Provides solid repair cost estimates
not computers, MMG Capital for renovation projects
is weathering the storm that has •Supports up to 20 financial options
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for comparison purposes
sector, unleashing a tsunami of
bad debt. In fact, the California •Has charts, graphs, and tables for cash flow
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Short Term Retirement, pg. 55
state of Georgia. Reedy and his wife have
been married for more than 30 years and
are both native Memphians.
They say they’re fortunate to live and in-
vest in Memphis for several reasons: “We
have low price points and high rents per
square feet. We are a slow-growth city, we
don’t have major swings in the local econ-
omy.”
Historically a trading center for cotton
and hardwood, Memphis is now headquar-
ters for major manufacturing, services and
other business sectors. The city is home to
three Fortune 500 company headquarters:
FedEx, AutoZone and International Paper.
Memphis’s economy is diverse. The area
services include: banking and finance (First
Tennessee, National Commerce Bancorp,
Union Planters); real estate (Belz Enter-
prises, Boyle Investment Co., and Weston
Co.); nonprofits, including the world’s
largest waterfowl and wetlands conserva-
tion organization (Ducks Unlimited); and
a restaurant chain (Backyard Burgers).
Science and technology are strong local
industries too. Memphis is also considered
a Mid-South retail center and an attractive
tourist destination.
With so many positive attributes, Mem-
phis is definitely commanding the attention
of investors around the world.
So now that the word is out about the Short
Term Retirement (STR) program, don’t be
surprised if you see more investors hold-
ing on to their older used car a little while
longer so they can buy a rental property in
Memphis instead.
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