Wealth

AR
eal

Real Estate
ty4
11
P ubl
ica
tion

Vol. 1 • No. 2 • 2011

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

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

Tips for Success in

Business & Real Estate

Photograph by Sam Green

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whose workers need affordable housing and you have a climate first investment property through
ripe for generating substantial returns on rental properties. We Realestatedone4u.”
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acquire the home, complete necessary rehab to yield top rents, Columbus, Ohio
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on’t understand.
much wealth has
the past decade.
e to go it alone,
-The Million Dollar-
Sweet SPOT
experts.
Network brings
rienced investors
hare information
each other.
articles, videos,
s and downloads
I
by Kathy Fettke
e our members to
vesting decisions
t’s no secret
that banks
nce-in-a-lifetime
w o u l d
rather buy
on, visit: Treasuries
althNetwork.com
today than lend
to homeowners
or investors. Why
not? They can bor-
row interest-free
from the govern-
ment and then
turn around and “lend” back
to the government for a profit.
It sounds like another illegal
scam that will ultimately hit the
American taxpayer — a pretty
common story these days.
We can get mad or we can get
even. Either way, if we want to
protect ourselves and our chil-
dren, we have to learn to play
their game.  Since financing
availability is tighter than ever,
that leaves us a huge opportu-
nity to get great deals.
The sweet spot right now is
with properties that are out of
the average investor’s reach
but too small for hedge fund
investors. There is just not a
market for $1 million to $10
million deals. Distressed prop-
erties in this range are heavily
discounted, giving huge returns
for those who can manage to
acquire them.
At Real Wealth Network, we
have over 6,000 members so
deals come across our desk all
day long. This gives us the abil-
ity to cherry-pick the best ones.
For example, we were told
about 27 almost-finished wa-
terfront townhouse in Portland
in the highly desirable Pearl
District. The construction bank
failed so the developer couldn’t
finish the work. The FDIC took
over the $12.8 million note. We
Realty411Guide.com PAGE 5 • 2011
first offered $8 mil-
lion but were denied.
Six months later we
offered $3 million and
it was accepted. We
syndicated this proj-
ect into 60 shares of
$50,000 each and were
able to purchase the
property at auction —
which eliminated liens
and liability. Profits are
expected to be quite astound-
ing since the town homes only
need finishing work and con-
tracts are already in place for
end-buyers.
While we’re still finding in-
credible deals in single-family
homes around the country,
we’re seeing the steepest dis-
counts in the larger units that
most individual investors can’t
afford. Apartment buildings in
Texas are another sweet spot
that we are aggressively target-
ing now.
If you’re tired of making mul-
tiple offers and competing with
hundreds of other investors,
consider joining our network
(it’s free) and team up with us
on the big stuff that has higher N ATIONAL R EAL E STATE
discounts and less competition.
I NSURANCE G ROUP , LLC
You can also download your
free report on “7 Steps for New
Real Estate Investors” on our
main page:
www.RealWealthNetwork.com
Kathy Fettke is the host of the
Real Wealth Show, Saturday
mornings at 10 to 11 on 1220
AM KDOW. For information,
contact: 925-280-2830 or 888-
RWNETWORK (796-3896) or
Kathy@RealWealthNetwork.
com DRE License # 01509755
Real Wealth Network has ex-
panded with offices now in
Malibu & Walnut Creek, CA.
reWEALTHmag.com
Real Estate Investors Store
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 Everyone Can Become
Realty411
& AN ENTREPRENEUR
Wealth
Real Estate

Dave Lindahl in front of one of his numerous multifamily complexes.

FOUNDER
Linda Pliagas
info@realty411guide.com
EDITORIAL STAFF
Lori Peebles
Matt Malouf
Anita Woods
Brianna Bertrand
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by Dave Lindahl

T
Emma Krull - The Dab Hand
CALIFORNIA DISTRIBUTION
Professional Distribution Solutions here is a common belief that only the person dreams about.
1.877.418.6500 few people that have the desired For instance this thinking can be
NATIONAL DISTRIBUTION attributes can be entrepreneurs, about what is the purpose of coming to
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but this is not true. Entrepreneur- this world? What can I give to this world
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Having a positive approach for the
Published for Investors by Investors
Realty411 and Real Estate Wealth magazines are published in
future and thinking optimistically is the
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Neosho Ave., Los Angeles, CA 90066). Publishers are not re- right way for achieving your dreams...
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without permission is strictly prohibited. The opinions expressed they want to fulfill or at least have a desire One could learn about its strength and
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Before investing in real estate, seek the advisement of a trusted fi- to improve their quality of living. This per- weaknesses by searching his personal
nancial adviser, attorney or tax consultant. Real estate investing is ception of human beings leads to encour- history in the past in which he has a
risky and may result in loss of capital. Please invest responsibly.
PRINTED IN THE USA. GOD BLESS AMERICA
agement for working hard and getting what number of experiences that caused him
Connect to our virtual network today! they want, this perception is commonly difficulties and obstacles in his way of
known as intuition. It is a kind of poten- success. From these past experiences the
tial in human beings that leads to creative person could learn not to repeat his mis-
imagination. takes in the future and to use his weak-
Human beings are the best creation of nesses as his strength.
God that is given the power of creative This is the common thinking of ev-
thinking and through this thinking they are ery person that looks into his past and
able to do a lot of creative tasks. This cre- gets out his mistakes, but one thing that
ative thinking can be from the past, present differentiates an entrepreneur is that he
and future and can relate to anything which
Continued on pg. 46
Realty411Guide.com PAGE 7 • 2011 reWEALTHmag.com
 NOTICE Take Advantage of
Your
Your time
largest
largest
NOTICE
time toto qualify
qualify for
real estate
timereal estate
for oneone of
tax incentives
fortax
oneincentives
of the
the
in
in
Massive Tax Deductions
Invest in the Go Zone, Before It’s to Late...

A
Your to qualify of the largest
U.S.
U.S. history
history is almost
almost up. If you would fter six years of Go number of reasons: (i) Timing;
real estate taxisincentives up.in If you
U.S. would
history is Zone initiatives sanc- Go Zone tax incentives  end
like
like to
to turn
turn federal
federal income
income taxes
taxes
almost up. If you would like to turn federal
that
that tioned by the federal December 31, 2011, so there
government, the oppor- is a short window to
you’ve
income already
you’ve taxes
alreadythat paid
paid over
you’ve over
already the
the last
last
paid over55 tunity to turn taxes into take advantage of this
years
the lastinto
years into equity
equity
5 years in
in the
theinnations
into equity nations top
top
the nation’s
cash-flowing equities
will soon come to an
tax opportunity, (ii)
The general economy
emerging
emerging
top emerging market,
market,contact
market, contact
contact us us imme-
usimmedi-
imme- end. of the greater Biloxi
Individuals seek- (Go Zone) area is
diately.
ately. The The
diately. The deadline
deadline
deadline for
for incentives
for incentivesincentives
is quick- ing tax relief and growing quickly
is
ly 12/31/2010.
isapproaching. Inventory
12/31/2010.Inventory
Inventory is limited.
is limited.
is limited.
an opportunity to
increase their real
because of the
Go Zone incen-
estate portfolios will tives  and the real es-
need to hurry as one tate market are strong because
of the greatest tax-saving pro- of the area’s growth. 
grams of all time will be expir-
ing this year. Q: They say, “Time is of the
To make sure we provide essence,” but the Go Zone
readers with the latest news on Opportunity really is time
the Go Zone, we recently inter- sensitive, please explain.
viewed Brett T. Immel, a part- Immel: The Go Zone ends
ner with Hanover Companies December 31, 2011, therefore
LLC, the leader in Go Zone op- property that is Go Zone eligi-
portunities. ble, new construction/first use,
Since 1969, the principals has to be placed in service and
of Hanover have been assist- closed by the investor before
ing clients in creating wealth the end of the year. Most clients
through real estate as investors, are utilizing bank financing and
fund advisors, property manag- turn times with lenders are on
Positive
Positive cash
cash flow
flow
Positive Cash Flow ers and developers. Read on to
learn how to take advantage of
average 45 plus days. Because
of the time limitation, it’s im-
Rated
Rated #1
#1 Emerging
Emerging market
market the Go Zone, before it’s to late. portant to make a quick deci-

Rated #1 Emerging Market

sion and not delay the process.

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

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

877-373-2805
was created by legislation, to have contributed to its surge
provide certain tax advantages in population? 

877-373-2805
to companies and individuals Immel: Biloxi, Mississippi, has
willing to invest in the rebuild- seen considerable growth and
ing of the qualified tri-state area many sectors of the market have
INVESTMENT
INVESTMENT GOALS
INVESTMENT GOALS AND
GOALS AND TAX
AND TAX LIABILITIES
TAX LIABILITIES DIFFER
LIABILITIES DIFFER FOR
DIFFER FOR EVERYONE.
FOR EVERYONE. GO
EVERYONE. GO ZONE
GO ZONE IN-
ZONE IN-
IN- most affected by Hurricane Ka- contributed.  Jobs, jobs, jobs is
CENTIVES AND
CENTIVES
CENTIVES AND DEDUCTIONS
AND DEDUCTIONS MAY
DEDUCTIONS MAY DIFFER
MAY DIFFER IN
DIFFER IN TERMS
IN TERMS OF
TERMS OF GO
OF GO ZONE
GO ZONE QUALIFICA-
ZONE QUALIFICA-
QUALIFICA-
TIONS.
TIONS. WE
TIONS. WE MAKE
WE MAKE NO
MAKE NO REPRESENTATION
NO REPRESENTATION
REPRESENTATION AS AS TO
AS TO AN
TO AN INDIVIDUAL
AN INDIVIDUAL OR
INDIVIDUAL OR PROPERTIES
OR PROPERTIES ELI-
PROPERTIES ELI-
ELI- trina. all that we see and it has a di-
GIBILITY
GIBILITY TO
GIBILITY TO RECEIVE
TO RECEIVE GO
RECEIVE GO ZONE
GO ZONE BONUS
ZONE BONUS DEPRECIATION
BONUS DEPRECIATION AND/OR
DEPRECIATION AND/OR INCENTIVES.
AND/OR INCENTIVES. YOU
INCENTIVES. YOU
MUST
MUST CONSULT
MUST CONSULT A
CONSULT A TAX
A TAX PROFESSIONAL
TAX PROFESSIONAL TO
PROFESSIONAL TO ENSURE
TO ENSURE YOUR
ENSURE YOUR ELIGIBILITY
YOUR ELIGIBILITY FOR
ELIGIBILITY
YOU
FOR GO
FOR GO
GO
Mississippi is the last state in rect affect on real estate.  When
ZONE
ZONE BONUS
ZONE BONUS TAX
BONUS TAX DEDUCTIONS
TAX DEDUCTIONS OR
DEDUCTIONS OR OTHER
OR OTHER INCENTIVES.
OTHER INCENTIVES.
INCENTIVES.
INVESTMENT GOALS AND TAX LIABILITIES DIFFER FOR EVERYONE. GO ZONE INCENTIVES AND which this special tax incentive Hurricane Katrina hit in 2005,
DEDUCTIONS MAY DIFFER. IN TERMS OF GO ZONE QUALIFICATIONS, WE MAKE NO REPRESENTA- is available.  The incentive itself it wiped out about 20 percent of
TION AS TO AN INDIVIDUAL’S OR PROPERTIES’ ELIGIBILITY TO RECEIVE GO ZONE BONUS DEPRE- (including Mississippi) will end the housing sector when other
CIATION AND/OR INCENTIVES. YOU MUST CONSULT A TAX PROFESSIONAL TO ENSURE YOUR
ELIGIBILITY FOR GO ZONE BONUS TAX DEDUCTIONS OR OTHER INCENTIVES. soon. Hanover  has been  con- markets saw overbuilding and
centrating in the Go Zone for a excessive supply.  Markets like
Realty411Guide.com PAGE 8 • 2011 reWEALTHmag.com
Miami and New York City currently have
so much existing supply that absorption
levels are five years plus, meaning it will
take over five years for this inventory to be
sold.  This is not the case in Biloxi. 
Thirty-five percent of the market is made
up of government-related jobs, mainly be-
cause of Keesler Air Force Base.  Keesler
had a $1.1 billion economic impact on
Biloxi’s population of 250,000.
Buying real estate close to a military base
is never a bad idea because as log as the
base is active, there will always be consis-
tent government funding and jobs being
created. Tourism provides another thirty

National Real Estate Insurance

Group & Affinity Group
Management Combine Forces

N
ational Real Estate Insurance buy-and-hold investors and fix-and-flip in-
Group/Affinity Group Manage- vestors.
ment has had a unique approach NREIG/AGM is perhaps so uniquely de-
percent of the market, mainly because of to meeting their clients’ insurance needs signed and suited to meet their customers’
the casinos.  since 1999, and it’s paying off for them. needs because Wrenn and another of the
Biloxi is the second largest casino market Their program allows people to pay company’s owners, Tim Norris, are prop-
with over fifteen land-based casinos (in- month-to-month for the coverage they erty investors themselves.
cluding the Hard Rock and Beau Rivage) need, giving them the ability to change “We know the market countrywide be-
and more planned for the future.  Casino their plan to meet unique insurance needs cause we have professionals we insure who
revenue is up for 2010 and the occupancy as they come up. “We have the right cov- make their living off of their local invest-
of the casinos has been very high.  erage at the right time with a one-minute ments. We can access information about
In addition to these two driving forces, email to us to change, as needed,” says various areas of most urban cities today
there are many corporations in the area that owner Mike Wrenn. through local knowledge,” Wrenn says.
contribute to job growth, including North- NREIG/AGM currently represents over He adds: “As an example, there are unique
throp Grumman, Seaman Composites, 1,500 people and is adding approximately features to the Kansas City and Memphis
Rolls Royce and many others.  80 more a month; by 2012 they will have markets that only locals know as it pertains
Lastly, in July 2009 Biloxi-Gulfport re- over 2,500 clients. The company consid- to crime and safety of the property in more
ceived approval for expansion of the box ers their rates competitive and claims the inner-city locations. When we need help
and container port to essentially make it the stability of their program over the last ten understanding local conditions from street
largest box and container port in the U.S.  years to be one of their greatest strengths. to street in certain cities, we know where
This is because of Biloxi-Gulfport’s cen- Investors can choose different deduct- to get it.”
tral location in the U.S. and the expansion ibles and plans utilizing actual cash value Besides relying on their local contacts,
of the Panama Canal (set to be complete or replacement cost, depending on their NREIG/AGM is actively involved with
in 2014).  Bloomberg recently released a needs. many real estate groups around the country.
report that Mississippi would see housing “The method we use to manage the in- “We attend over twenty Real Estate Invest-
prices increase 16% by 2014 and Biloxi- ventories for our insureds, their payment ment Association (REIA) chapter meet-
Gulfport would be the market with the terms and the right coverages account for ings,” Wrenn says.
highest increase in prices.  our success today,” Wrenn explains. To that end, NREIG/AGM is planning
The bottom line is that the market is NREIG/AGM insures in all 50 states and to incorporate video correspondence with
strong and stable. Low unemployment and can easily follow their customers if they their clients late next year. Soon customers
a consistent need for housing will contin- move. The company has IT systems that will also be able to manage accounts online
ue to grow this market for many years to track each location and can account for es- so that they will not be dependent on com-
come. crowed payments by mortgage companies municating with representatives during
— by Brianna Bertrand during the year. Clients can pay through business hours. — by Brianna Bertrand
For more information about the Go Zone, credit cards and are not charged for cover-
please contact Hanover Companies, LLC: age the month a property may be deleted; For additional information, please visit:
877-373-2805. NREIG/AGM is therefore ideal for larger www.nreinsurance.com
Realty411Guide.com PAGE 9 • 2011 reWEALTHmag.com
Our Real Estate Crystal Ball
by Richard Barrett So, it appears that job growth encourages Sixty years later,

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

past ten years. In Houston unemployment
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ton has ranked #1 in job growth, adding

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Houston, TX & Phoenix, AZ

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period, Los Angeles lost 376,000 jobs,
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253,000 jobs.
is March 12 & 13 Long-Distance Flip Opportunities. Realty411
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Realty411Guide.com PAGE 11 • 2011 reWEALTHmag.com
 On Location in Memphis

T
the Cash Flow Pros
by Linda Pliagas
hey came from Kansas City,
Baton Rouge, Los Angeles
and Indianapolis to Mem-
phis, Tenn. Investors from share their Secrets
at their REI EDGE Event
a distance mingled with
local wholesalers, agents
and brokers. All were there to spend three
days learning from one of the most success-
ful families in the real estate industry, the
Clothiers.
“We’re going to pull back the curtains and
reveal all of our secrets,” Kent Clothier Sr.
said — that was enough to prompt me to
return to Memphis only one month after my
initial visit.
The Cash Flow Pros’ “REI Edge” three-
day event, hosted by Kent Sr. and his sons
Chris, Brett and Kent, covered every gamut
of the real estate industry imaginable. From
property management, customer service,
private money and marketing, no stone was
left unturned.
Kent Sr. revealed that they were in the
process of developing educational products
and the event offered a perfect opportunity
for them to fine tune their programs.
The room of about 50 real estate investors
and industry professional was initially led
by Kent Sr. who has purchased, renovated
and sold thousands of properties around the
country. It was his idea to round his sons to-
gether in Memphis to take advantage of the The Clothiers, from left to right: Brett, Kent, Chris and Kent Sr.
phenomenal buyer’s market in Tennessee.
Together the Clothiers have been involved was one of their own local competitors who Chris says that in order to remain suc-
in diverse real estate markets, including also caters to long-distance landlords. cessful, they focus 80% of their time on
Texas, Colorado and Florida. One of the most helpful tips given to us building a buyer’s list. Some of their other
What drove them to the Memphis market by Chris Clothier for dealing with today’s secrets for their incredible sales volumes
is exactly what drives Californians to buy tough lending industry was the compilation are creating “call-to-action” marketing
2,000 miles away from home: Cash flow. of “The Bank Book.” pieces, which ignite prospects to reach
This Clothier secret weapon provides an out. “You are always marketing yourself, it
REI Edge: The Cash Flow Pros organized and effective way of presenting never stops,” Chris admits.
Reveal Their Secrets their company’s information to a banker Once an investor becomes a client, the
when trying to procure a loan. Clothiers say they will be repeat custom-
At the Cash Flow Pros event, which was “The Bank Book puts me in front of the ers and refer others as well because of their
videotaped to be the blueprint for their pack,” Chris said, adding: “I have used this philosophy of “over performing and giving
new educational company REI Edge, each as a great ice breaker.” clients more than what they expect.”
Clothier spoke about the unique talents they Chris said his book contains a mission Eric Hobbs and his wife listened intently
bring to the company. statement, an executive summary and an while the Clothiers spoke. Normally they
Kent Sr. taught the group his secrets in introduction to his professional team, even are employed by the Clothiers as leasing
property management, customer service before the financials are presented. The agents, but today they consider themselves
and rehabbing. Chris revealed tons of mar- key is to present your organization as the their students.
keting secrets and tips for acquiring private best company in town, one that they should “The information they are giving is
lending. Kent, who lives in Florida, moti- want to be doing business with. great,” he enthusiastically said. When
vated the audience and sprung them into Another key issue touched upon during questioned about why he took three days
action. this informative weekend was sales, some- away from his tenant placement business,
The event was opened up to anyone who thing the Clothiers know a lot about. In the novice wholesaler replied with a smile,
was interested. Friendly competitors from fact, they consistently sell over 200 proper- “I want to learn from the best in the busi-
other markets eagerly attended. In the room ties annually. ness and that’s why I am here.” >
Realty411Guide.com PAGE 13 • 2011 reWEALTHmag.com
Property Management & Customer
Service: The Foundation for Success
Although MemphisInvest.com now
consistently sell 20 homes on a monthly
basis, mostly through referrals, it took
years of learning tough lessons for them
to attain that level of volume.
“We were not successful at property
management at first,” admits Kent Sr.
He adds: “We lost a lot of money on this
side of the business, but we’ve come a
long way in six years.”
When the Clothiers started assisting
out-of-state investors years back they
only sold the rental homes, they did not
have contact with the investors after-
wards. Kent Sr. is the first to admit that
it didn’t go so well. Customers were not
happy, repairs were costly, the manage-
ment was in chaos.
One of the ways that the Clothiers cre-
ated an improved system of management
is by bringing that aspect of the business
in-house so they have control over the
properties that their investors purchase.
The mindset of MemphisInvest.com
from simply selling rentals was trans-
formed into one where “the house is just
merely a bi-product.”
Kent Sr. explains: “It’s all about the
investors. It’s all about the client. Our
character, our integrity and our honesty
are on the line.”
Since they zeroed in on property man-
agement and on “exceptional customer
service” their sales have skyrocketed.
In fact, most of their existing business is
generated by repeat customers (the aver-
age investor buys four rentals) and refer-
rals from current investors.
Kent Sr. realized a tough lesson early
on: “Without the investors being happy,
there are no jobs in our company.” Now
MemphisInvest.com takes a proactive
approach. “Our goal is that the investor
will never have to call our office.”
To make sure the investors are kept
up-to-date, their management staff call
about sixty investors per week with a re-
port on their property.
Again Kent Sr. reiterated that they
turned a chaotic situation into a positive
one by merely shifting their focus from
properties to people.
“If you don’t have outstanding cus-
tomer service, then you won’t have a
business for long.”
Take Action Now
After hearing three days of fantastic
tips and information from one of the
nation’s top brokerages that services
out-of-state investors, the participants
were ready to return home and imple-
ment their newfound knowledge.
To make sure that our mindset was
right, the Clothiers asked audience
members to volunteer and address the
room. They wanted to know how we
would implement the information into
MemphisInvest.com’s new goals and ideas.
One gentleman from Louisiana ad-
Spring Schedule 2011 dressed the room. He admitted that he
wasn’t doing enough networking in his
Join the Clothier family at their property
farm area of Baton Rouge.
buying events around the country. Come
Another investor also took home
learn how to cash flow in one of the hottest
markets in the country, Memphis, TN. a tip or two. “The biggest lesson I
learned at this event is the amount of
Jan 13, 2011 - St. Louis, MO offers I need to make every month,”
Marriott St. Louis West said Andy Ono, an investor and whole-
660 Maryville Centre Drive saler from Kansas City. Ono was also
5:30 pm to 9 pm very pleased with all the information
Jan 29, 2011 - he learned on property management.
San Jose, CA While it’s easy for investors to make
Doubletree a list of goals while at an event, the dif-
2050 Gateway Pl. ficult part is transferring that positive
8 am to 5 pm energy into action.
Feb 17, 2011 - Kent Clothier knows this all to
Santa Ana, CA well. The developer of the 1-800-
Doubletree SELL NOW vanity number and the
201 E. McArthur FindCashBuyersNow.com marketing
Blvd. system, didn’t pretend to have a magic
8 am to 5 pm formula for success. No pill or spell
Feb 19, 2011 - can take the place of good ol’ fashion
Los Angeles, CA hard work.
Embassy Suites “If you want big things to happen,
9801 Airport Blvd. you have to do big things. This ain’t
8 am to 5 pm practice, this is the game,” he said in
March 12, 2011 - a matter-of-fact tone. “While you are
Orlando, FL sitting around thinking, someone else
Orlando Peabody is already doing it. Either you act on it
April 29 & 30, 2011 - Memphis, TN or get out the way.”
Memphis Hilton The audience was quiet, the pressure
939 Ridge Lake Blvd., Memphis, TN 38120 was on as Kent continued his closing.
“Ninety percent of the people will not
For more information, please contact: act, I challenge you to not be one of
(901) 751-7191 or MemphisInvest.com them.” It was time for students of the
Clothier real estate academy to create
their own success stories.
Sensing that the students were feel-
ing a little overwhelmed and skittish,
Kent Clothier lessened the intensity by
smiling and giving us one last piece of
friendly advice to chew on: “Don’t set
out to build that wall all at once, just
lay one brick at a time.”
MONOPOLY
on Baltic Avenue
by Lori Greymont
R
emember playing Mo-
nopoly and anxiously
waiting to get that third
property of the same color so
you could double your rent?
What if you had the oppor-
tunity in real life to purchase
three, six, twelve properties at
a time and start collecting on
all of them? The phenomenon
of massive numbers of bank-
owned properties hitting the
market means you can make
By investing in bulk REOs, an individual can
quickly acquire a portfolio of properties that
will produce cash flow for years to come.
just this kind of bulk purchase
(bulk REOs in real estate par-
lance). Bulk REO packages
provide 10 to 15 homes (nation-
wide) sold together for bargain
basement prices. By investing
in bulk REOs, an individual
can quickly acquire a portfolio
of properties that will produce
cash flow for years to come.
These homes are not in the high
rent Park Places of the world,
but in the working class Baltic
Avenue-type neighborhoods—
one reason there is a low cost
of entry.
How low? You can get in the
game for as little as $100,000
for a small portfolio of cash-
flowing properties or as little
as $200,000 for 20 plus prop-
Realty411Guide.com
erties ready to be turned into
cash-flowing, wealth-building
engines.
The first premise of this
strategy is that there still is a
market for homeownership that
is underserved: working class
people who make enough to
cover rent, but can’t get a bank
loan.
Working class people are
willing to buy houses and are
willing to make repairs — at
the right price. That price is
equivalent to rent. It makes
sense. Let’s say the average
rent in an area is $450. Offer
a working person a privately
financed home for $450 or less
per month and they’ll take the
deal. And they’ll make the pay-
ments because they already
have a history of making rental
payments. These loans are de-
signed to succeed, not doomed
to fail.
The second premise of this
strategy for investors is that a
right-sized, cash-flowing loan
at 9.5% over 15 years is a good
investment. Purchasing a cash-
flowing loan at a discount is an
even better deal.
Bulk REO purchases put
these premises into action. An
active investor will purchase
10 plus houses and then resell
them to owner-occupants with
Continued on pg. 35
PAGE 15 • 2011 reWEALTHmag.com
 How’s Life?
by Sam Sadat, founder of Los Angeles Real Estate Investors Club
W
e are always asking each other,
“How’s life?” The same person
might reply that life is great on
one day and then complain that life is terri-
ble on the next. Is this variation really a re-
flection of the changing nature of existence
or is it a function of human interpretation? I
believe it’s the latter and here’s why.
Life simply does what it’s supposed to. It
flows with no judgment, vendetta or favor-
itism. It’s neither good nor bad; it is imper-
sonal. Life simply serves up the events you
manifest. So don’t blame “life” for the bad
things that happen to you. Existence doesn’t
create the events in your life, YOU DO. If
you don’t like what you’re getting, change
your thoughts, words and deeds. Take re-
sponsibility, existence will respond.
Many people make the mistake of ap-
proaching life as if it is the enemy. They
drive themselves crazy resisting what life
brings and learning nothing. You can curse
life all you want, but life is innocent of all
charges. Life doesn’t even register your
complaints! Life is, after all, profoundly
neutral and just, which is good. You want
a better life? Begin by changing your per-
spective. Try to see things differently. What
are you ignoring or assuming that is lim-
iting your vision? Take a moment to think
about that. Are you belligerently skeptical
and hopeless? Or are you open and clear,
ready to assess situations without prejudice?
Often we don’t really see what’s unfolding
before us, instead we see it all through the
lenses of our previous conditioning. And
then our responses are programmed. We
become like robots.
When you choose to change your point of
view, a problematic situation is revealed in
a new light. Suddenly new solutions pres-
ent themselves. They seem so obvious! You
wonder how you could have missed them.
With this clear vision and with these new
solutions, you become a more powerful and
capable manifestor.
All the great sages in human history have
basically said the same thing in different
words: Learn to look at events in a way
that makes you stronger. Avoid subscribing
to interpretations that draw you down into
weak energy patterns. Seek interpretations
that strengthen you, that give you a choice.
Realty411Guide.com
This is the essential shift that
makes the difference between
manifesting success rather than
failure and abundance rather
than scarcity. Never be a victim!
To help you in your quest to shift your
paradigm and make a quantum leap, I have
developed a quick technique called, “pause
and ponder.” By practicing this easy tech-
nique, you can become a more potent ob-
server.
When something “unpleasant” happens
in your life, just pause. Pausing is surpris-
ingly powerful. Usually we try to protect
ourselves from uncomfortable circum-
stances in a reactive, unthinking way. We
immediately shut down, lash out or hide
away. We don’t think about what we will
do, we just do it. Or rather, it “just hap-
pens.” Unfortunately, this reactive behav-
ior is out of control. It tends to make the
situation worse than it really is, which in
turn causes more reactive behavior. This
results in a negative downward spiral, and
the self-fulfilling prophesy of victimhood.
You become the victim you think you are.
So remember to pause. Just stop.
Sometimes no action is required. Some-
times it’s best to sit back and let things
play out a little — give a little space for the
natural course of events. By being still and
acting only when necessary, many of life’s
problems magically solve themselves.
Learning to be still is the beginning of real
wisdom.
But don’t just pause, that’s not the whole
technique. You have to pause and ponder.
Ask yourself: How shall I choose to see
and process what’s just happened? What
light will I see this in? This will prevent you
once and for all from blindly reacting to the
situation. But most importantly this will
give you a chance to gain some perspective
and make a smart, positive choice. It will
give you the power to change things.
It is a mysterious, mystical truth that
seeing things differently actually changes
them. No one really understands how this
works, but it does. I’m not saying that if
you see your Volkswagen as a BMW it will
magically become a BMW, you don’t get
to choose the exact nature of the change.
Rather, through the power of resonance,
PAGE 16 • 2011 reWEALTHmag.com
events will shift to fit
your attitude, your per-
spective.
In the immortal words
of John Milton, “The
mind can make a heaven
out of hell or a hell out
of heaven.”
Is this starting to
sound a little too “out
there” for you? Perhaps this is a good time
to mention an unusual discovery that was
made in the field of quantum mechanics
when the science was in its infancy. It was
discovered during the observation of atom-
ic particles that the act of observation was
itself changing the outcome of the experi-
ment. If they changed the method of their
observation they observed something dif-
ferent. Change the perspective, change the
perceived. To put it mildly, this was quite
the mystery. Scientists have carefully con-
firmed and described this phenomenon, but
they still can’t explain it.
Each of us is a powerful, manifesting
being, but it is important to remember that
we cannot explain everything. This helps
us to remain humble and joyous in the face
of the great mystery. William Blake said it
best in his famous poem, “Auguries of In-
nocence”:
To see a World in a Grain of Sand
And a Heaven in a Wild Flower,
Hold Infinity in the palm of your hand
And Eternity in an hour.
We must not try to control the world,
only our perspective in it. This way our
manifesting becomes like a dance with
existence. So now let me ask you: How’s
life?
Best Regards,
Sam Sadat
PS: I encourage you to associate with posi-
tive, creative people and stay away from
those who lower your energy or hinder your
morale. For this reason we encourage you
to come to our monthly real estate meet-
ings. When you come to the LAREIC’s
monthly meetings, you will not only learn
the nuts and bolts of the real estate from the
best in business but also get a chance for
personal development and self improve-
ment, all in one incredible evening.
For more information about us, call
(800) 998-9930 or visit our websites:
www.samREclub.com
www.investorfundingresources.com.
 All Aboard for The Elite
Extraordinaire Cruise
A Celebration of Wealth
T he Elite Extraordinaire
Cruise is celebrating luxury
living and self improvement in
the high sees. The cruise departs
on March 17 from Miami, Fla.,
and docks March 31 in Los
Angeles, Calif. Guests will be
sailing to the Panama
Canal on the newly
refurbished Six Star
Symphony of Crystal
Cruises.
T h e   c r u i s e s ’  lifestyle,
overall theme  is
“ A  C e l e b r a t i o n
of Wealth: Where business
meets luxury.” An atmosphere
will be created where business
networking can take place in a
luxurious setting. Guests will
have the opportunity to listen
to and meet renowned author
and columnist Louis Rene
Beres, Ph.D., a professor of
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international law at Purdue
University.  Dr. Beres will
lecture on topics concerning
present day world affairs. There
will also be an innovative series
of complimentary interactive
classes created to enhance
knowledge in the
areas of arts and
entertainment,
business and
t e c h n o l o g y,
wellness, wine
and food.  Certificates of
completion will be distributed
at the end of the curriculum.
Live entertainment and
multiple off-shore excursions
will also be offered to guests
of The Elite Extraordinaire
Cruise. -by Brianna Bertrand
For more information, visit:
www.eliteextraordinaire.com
NEED TO CLOSE FAST?
We Have Millions of Dollars in
PRIVATE FUNDS
Available for investors who are ready to take advantage of
the current real estate downturn. Competitive rates & terms.
For more info call:
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Exclusively Serving the
Southern California Market
License #00832641
www.InvestorFundingResources.com
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 LEVERAGE is a Double-Edged Sword
L
everage is de-
fined as “the
use of an ini-
tial  investment, credit,
or borrowed funds to
gain a very high return
in relation to one’s in-
vestment, to control
a much larger invest-
“Leverage magnifies both gains and losses,” which,
like a double-edged sword, can help you or hurt you.
ment, or to reduce one’s own li-
ability for any loss.” Leverage is
a powerful tool investors use in
real estate transactions. Investo-
pedia.com states,  “Leverage
magnifies both gains and loss-
Realty411Guide.com
by Crystal Han from 360 Investments®
es”, which, like a double-edged requirements, loan to value ratios (LTV),
sword, can help you or hurt pre-payment penalties, and qualifications),
you. Therefore, although high- approximate closing costs (loan fees, trans-
est returns on investments can action fees, title, escrow, attorney, transfer
be most desirable, an investor tax, document fee), rehab/renovation costs,
must weigh the risk and rewards holding costs (taxes, insurance, payments),
carefully. Your goal should be income, expenses (property taxes, insur-
to maximize leveraging power ance, management fees, and maintenance/
while minimizing risk. repairs) and vacancy factors.
When evaluating and analyzing a prop- Net operating income (NOI) is calculated
erty, it is important to plug in all figures, in- by total income minus total expenses. Cash
cluding current appraised value (as-is), af- flow is calculated by NOI minus debt ser-
ter repair value (fixed up), average days on vice (mortgage payment). Please note that
market, purchase price, financing options debt service, also known as the mortgage
and terms (interest rate, down payment
Continued on pg. 22
PAGE 18 • 2011 reWEALTHmag.com
Cash Flow with Dan in
AMERICA’S HEARTLAND
Missouri Real Estate Exchange
Helps Investors from Around
the World Invest in Kansas City
by Brianna Bertrand

F
ive years ago in September, Dan and Nancy
Reedy opened Missouri Real Estate Exchange
(MOREKC.com) for business in a 10 x 20 foot
office space with only two phones. Today their office in
Grandview, Mo., spans 4,000 square feet, they employ
10 people and another 30 to 50 subcontractors at any
given time.
Together, Dan and Nancy own a handful of properties
and rentals that they’ve acquired over time. They have a
long history in the real estate investing business.
Nancy, for example, grew up with a father who bought
distressed farms and land and would rehabilitate and re-
sell them for a living. She bought her first investment
property at 19. She went on to acquire one of her dad’s
farms and subdivide it into estate lots to create her own
high-end subdivision in Foristel, MO. She is both a Mis-
souri and Kansas real estate broker and owner of MORE
Homes LLC and MORE Property Management LLC. >

Realty411Guide.com PAGE 19 • 2011 reWEALTHmag.com

 My dad always said, “Don’t are benefiting from the returns they’re seeing
wait to buy real estate. Buy real in the U.S., as opposed to the lower amounts
estate and wait.” they’d see in their own countries. People in
Owning real estate has always New Zealand and Asia have also expressed in-
been the foundation of Nancy’s terest in doing business with MOREKC.com.
endeavors. She explains: “Real “The big draw to Kansas City is not just
estate gave me the opportunity lower prices, [it is] due largely in part to the
to quietly build wealth while stability of the market and a higher quality of
also receiving income, depreci- tenant. The biggest reason investors from all
ation and tax benefits. I realized over the globe come to Kansas City now is due
at an early age I had a passion to the 100% turn-key product that we provide
for design and started doing and the depth and scope of our power team,”
specialty painting for myself
and friends.”
Soon, Nancy says the word
“No matter where you invest, property management is the key
started to spread. “I eventually to the kingdom to insure that the investment performs
started my own interior design
company called Distinctly and gives you the profitability necessary to stay in the game.”
Yours. It was a great match as
I was already involved in real
estate and now could put my Dan explains. “Right now 70% to 80% of their
touch on people’s homes.” business are repeats and referrals. “We have
Nancy says that people always kept the long-term vision in regards to
don’t realize just how much a our investors’ properties,” Dan says and ex-
little design work and specialty plains: “We tend to rehab our rental properties
painting can improve the desir- to a retail status with new windows, HVAC,
ability of a property. Within a ceramic tile, and most recently, we have been
few years, Nancy ended up tak- putting granite counter tops in a large number
ing on consulting and design of our rental homes.”
work for a high-end builder in Dan and Nancy have made some fantastic
Kansas City. “They were build- deals with suppliers and it doesn’t cost them
ing new lakefront homes from much more to go high-end as it does to go
$1 million and up and we were Nancy and Dan Reedy cheap. They say the biggest benefit to the
doing the exposed timbers, distressing the higher-end rehab is that properties rent much
hardwoods with hammers and chains and Investing for the Regular Guy.” faster, stay occupied longer and draw a better
creating really bold color designs. It was a The Reedys’ main focus with clientele. This makes for a much more profit-
blast!” MOREKC.com, however, is keeping able investment for the investor enabling them
The last big project she was involved in enough properties available for inves- to purchase more properties with confidence.
before the couple’s start of Missouri Real tors. Their primary clients are investors MOREKC.com’s average rehabbed cash
Estate Exchange was a $1 million-dollar from all over the country interested in flow properties are $30,000 to $40,000, which
rehab on a huge estate at a country club. Kansas City because of low property bring in rents of $600 to $900 per month. The
The property featured suspended company does offer conventional financing
staircases, a wine cellar and it even with down payments of 20% to 30%, although
had a secret door in the library lead- it’s tough to attain in today’s climate.
ing to a master bedroom and exercise Recently, MOREKC.com has announced
room. that they are now able to finance some of their
“Now I concentrate on the proper- cash-flow properties. The company’s private
ties that we sell to investors, making lender has agreed to do shorter term full amor-
sure they stand out and appeal to ten- tization loans on properties with a larger-than-
ants or our retail buyers,” she says. usual down payment.
One of the ways this is done is by The up-front cash flow will be less than a
incorporating popular colors with a conventional loan, but the properties will be
light staging to give the homes a little fully paid off in five to 15 years and there are
more warmth and desirability. no limits on the number of properties pur-
Dan is a life-long resident of Kan- chased. With these shorter term and larger
sas City and knows the local market inside prices and the higher-than-usual cash down payment requirements, the underwriting
and out. In less than five years, Dan has flow the market offers. requirements are substantially less rigorous.
been involved with over 1,000 real estate The Reedys started working with “The mortgage industry has all but said, ‘No
transactions and 400 rehab projects. Dan people from Canada and Australia ear- thanks,’ when it comes to investor financing,”
also hosts his own radio show, “Real Estate lier this year as well. Foreign investors Dan explains. “I have never been a big fan of
Realty411Guide.com PAGE 20 • 2011 reWEALTHmag.com
 A Reedy Rehab
hard money loans as they are
so expensive. I finally was able
to strike a deal with my private
From Ugly to Elegant lenders where they will loan up
to 70% of acquisition for up to
15 years non-recourse at com-
S
avvy inves- petitive interest rates.”
tors always MOREKC.com’s new pro-
want to buy gram has very few restrictions
the ugliest house in and it’s taken off like wildfire.
the best neighbor- They currently have over 50
hood possible, and properties that qualify for this
the Reedys are no financing program.
different. The Reedys are also firm be-
They scour lievers that property manage-
their market ment is key to the success of
for the best their company.
deals in the “We have had inves-
best of areas tors find better deals on
for their paper, but when their
investors property management
around the company could not per-
world. After form their duties, the
hundreds of properties sat vacant and
rehabs under there was no cash flow,
their belt, the Reedys are experts at turning run down, ugly those better deals turned
houses into elegant homes worthy of exceptional tenants. into financial night-
Would you like to turn a blighted home into a beautiful mares,” Dan says.
“No matter where you invest,
masterpiece, one that will consistently cash flow?
property management is the
Please visit MOREKC.com to see the latest opportunities
key to the kingdom to insure
available. Seller financing is now being offered!
that the investment performs
and gives you the profitability
necessary to stay in the game.”
Nancy Reedy
inspects a new
Dan & Nancy’s partner Jeffrey Lund.
acquisition
that needs a MOREKC.com continues to
lot of work. grow and expand all the time,
This project is and the Reedys are constantly
not for looking for ways to improve
the novice. their company.
“The only way we can ac-
complish this is with good
people and processes and the
sense to know that we need to
Experienced investors constantly grow, improve and
like the Reedys know stay current with the market,”
that when a house is Dan says.
renovated just right, it “We are always tweaking
won’t sit vacant long. our processes and looking for
ways to improve service to our
Realty411Guide.com PAGE 21 • 2011 reWEALTHmag.com
Dan Reedy plays Santa.
investor and tenant base. We
just recently hired a fantastic
accountant dedicated solely
to property management,” he
explains and adds: “Our staff
consists of five full-time leas-
ing agents who are respon-
sible for fielding rental calls,
showing properties and getting
leases signed, a sales manager
who is in charge of marketing
the properties, keeping track
of appointments and section
8 inspections. Plus, our main-
tenance department has three
full-time maintenance men that
keep our 400 plus units func-
tioning 24/7.”
The Reedys have also started
a mentoring and training pro-
gram for people wanting to
learn how to profit in real estate
without spending thousands
on seminars, tapes and books.
Their goal is to educate as
many people as possible about
the current phenomenal buyer’s
market.
“We have always stressed
to our local and national buy-
ers that this is a small window
of time that’s not going to last
forever. If you are not actively
pursuing real estate investing as
a way to build long-term wealth
then SHAME ON YOU!” Dan
exclaims.
For more information, please
visit: www.morekc.com
 Leverage is a Double-Edged Sword, pg. 18
Leverage can be an investor’s best friend
payment is NOT considered an expense or worst foe so please be careful!
and is not included in the NOI calculation.
Cash on Cash return (COC) is calculated leverage. For example, getting financing
by cash flow multiplied by 12 (always an- at 80% LTV is being more leveraged than
nually) divided by total investment (down at 50%. Therefore, when leveraging, make
payment, out of pocket expenses and clos- sure you have a comfortable cushion of
ing costs, if not financed). POSITIVE cash flow to allow for vacancy,
Return on Investment (ROI) is COC but repairs, maintenance and turn over costs.
also includes the tax benefits of deprecia- Also, make sure you have enough equity
tion (paper loss) and principle mortgage re- in case you ever need to liquidate your as-
duction. set. 360 Investments™ has created a FREE
The higher the ROI could well mean the useful calculation tool, the “Deal Analyz-
higher leveraged you are. A high Loan to er,” which quickly calculates net operating
Value ratio (LTV) could also mean high income, cash flow, total invested amount,
f o r C r e at
R e a ive
l E s S olu
t at e t i o n
I nv s
esto
rs
no credit score required
no-money-down investor programs
transactional financing
guidance & support
for investors
and return on investment. It also gives you
the option to select whether closing costs
are financed or not financed, which will
change the cash flow, total invested amount
and return on investment.
Quickly analyze your next investment
opportunity by visiting our website at:
www.360investments.net.
Online there are other software programs
available that provide more extensive anal-
ysis, like return on equity based on future
projected appreciation rates.
Investors should monitor their invest-
ment figures monthly and keep tabs on
market appreciation/depreciation, rental
vacancies, rental rates, population growth,
mortgage interest rates, job growth, unem-
ployment rates, number of foreclosures,
and other key economic factors.
Leverage can be lowered by increased
property values, principle mortgage reduc-
tions and additional principle payments.
Leverage can be an investor’s best friend
or worst foe so please be careful!

For more information, please visit online:

www.360investments.net

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Rent your property FAST

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Realty411Guide.com PAGE 22 • 2011 reWEALTHmag.com
 Are You Profiting from
the Credit Crunch?

SPECIAL
REPORT
INSIDE!

T o d a y ’ s
B AN K i n
n B e t h e e n t.”
“YOU c a n v i r o n m
e n d i n g E
TIGHT L

SPECIAL REPORT INSIDE BY:

Ron Black, Investor, Texas Real Estate Broker

and President of Texas Investor Homes

Texas is the #1 Growth Market

Investors are Needed to Fund Housing Projects

Provide Short-Term Financing to Builders
for High Potential Returns and Cash Flow
I
f you’ve been looking for an easier
way to invest in real estate then you
may find the answer in this report.
Many years of experience in real es-
tate has taken me from the traditional “buy
a fixer upper and rent it” to foreclosure and
REO buying and rehabbing. I have dabbled
in short sales and then finally in new con-
struction opportunities before I discovered
the severe need for alternative builder con-
struction financing. Although I had great
success with most forms of investing in
yesterday’s market, I found that creative
and unique new construction real estate
investments were the most trouble-free
and profitable in today’s NEW real es-
tate investment market. Yes, the market
has changed dramatically since 2008 and
what builders need from investors has
changed as well. Are you positioning your-
self for this change? Net cash flow is the
name of this new game NOT appreciation.
Change: More Important than Location?
Savvy investors always have their ear to the
ground and their nose to the wind seeking
new opportunities. Savvy investors are also
not scared to change. We’ve all heard the
real estate axiom: “Location, Location, Lo-
SPECIAL FREE REPORT
By Ron Black
cation!” Well I have a new one that is just
as important in today’s real estate invest-
ing market:“Change, Change, Change!”
Are you still trying to get 5% down or no
money down for your investment property
purchases? What about getting an 80/10/10
loan as an investor? Are you endlessly
bidding on foreclosures with no success?
What about short sales? How many have
you bought? The challenge for most real
estate entrepreneurs is to recognize
when it is time for change. That time is
NOW. Right now the new construction real
estate market is SCREAMING that it needs
alternative builder financing. Are you lis-
tening?
What Happened to the Real Estate Party?
The devaluation of many real estate mar-
kets across the country coupled with in-
credibly tight lender financing guidelines
has depreciated many markets back to
where they were eight to 10 years ago. That
rapid price depreciation in itself hastened
the downfall of many seasoned real estate
investors, not to mention banks and lending
institutions, etc. Since many investors were
already using very short-term financing,
when it came time to refinance, the lender
guidelines had already tightened and the
price appreciation had reversed and they
were stuck “upside down” or “unqualified”
to refinance any longer. I can see many of
you reading this shaking your head because
this actually happened to you or someone
you know. The Glory Days of double-digit,
year over year appreciation are gone with
a few rare market exceptions. Low single
digit appreciation is most probable for the
next 10-year cycle. In other words, if you
are going to make any money in this NEW
market investing in real estate you better
make it on cash flow because significant
appreciation is unlikely in the foreseeable
future.
A Better Option to “Buying” Real Estate.
So what are the options for potential high
yielding returns on our real estate invest-
ment dollar if price appreciation is very
limited and we are tired of the landlord
game? What many frustrated investors are
doing because of these lending changes is
looking almost strictly for “Cash Flow”
opportunities versus the long shot of price
appreciation. One way many investors
are achieving high cash flow is simply by
“loaning” rather than “owning”. The op-
portunities are endless because builders are
having an extremely difficult time finding
traditional bank financing.
Why are Builders Willing to Pay High In-
terest Now?
The real estate market is screaming right
now for alternative financing, especially in
higher demand areas like Texas. Builders
in particular are hurting right now because
many banks absolutely will not loan to
builders regardless of the demand. Why?
“Real estate” is a dirty word to banks
right now. Banks that do loan to builders
do so at much lower levels than before even
if their builder/client has been performing
well on their loans for years. Listen to the
news every night and you will hear a story
about banks “not lending”. Builders and
many other small businesses are begging
banks for loans. The sad part is that some
of the very banks we as taxpayers “bailed
out” have now turned their
backs on us and quality
builders who were their
best clients for years! The
lending restrictions for
builders has more to do
with the banks reducing
their exposure to real es-
tate loans “overall” than
it has to do with the credit
worthiness of the builder.
Builders did not need us as
private lenders two years
ago because banks were
shoving money at them
for 7% to 9% APR. Now
builders need small pri-
vate investors in order to
keep building and will pay
them more interest … for now. When you
think about it, what are the other options if
banks do not lend to builders? There aren’t
many. Some of the builder’s homes are
sold even before they are built. This is the
opportunity that many investors are seiz-
ing on. There is a huge funding niche in
today’s market ripe for the picking if you
know how to tap it.
Lending vs. Buying as an Investment
There are many flavors of new construction
investing but the one I will cover here is
my personal favorite, Interim Construc-
tion Loans to Builders for High Net Cash
Flow. Depending on your background and
experience level in real estate investing,
you may find this topic to be a rather strange
approach to traditional real estate investing
since we are talking about lending rather
than buying. The main rea-
son I considered this lend-
ing approach for my real
estate investing was that
the old approach was not
working any longer in to-
day’s market. The typical
“buy and hold” approach
most real estate investors
were raised to believe in
has disappointed many in-
vestors over the past few
years. The same thing can
be said for the stock mar-
ket. The market correction,
volatility and the current
government taxation and
regulation uncertainty has
made many real estate and
stock market investors
look suspiciously at their “buy and hold”
approach. There must be a better way to
invest rather than the unpredictable stock
market!
Who is Eligible to Invest?
Most anyone can invest as a lender regard-
less of their credit score as long as they
have access to cash. You can even invest
with your IRA and 401(k) through a “self-
directed” structure. You can invest person-
ally or with an LLC or most any type of
entity structure you choose. Many inves-
tors who have low credit scores choose to
invest in this program because they can no
longer get a real estate loan to buy prop-
erty.
Many foreign nationals invest in this
program because of the almost impos-
sible lending guidelines that prevent them
from owing investment real estate. The
best news is that you do not
need to go through a rigorous
qualification process to be
“qualified”.
Almost anyone can become
a private interim lender, if
they have access to cash.
Be an Investor, Not a Land-
lord.
Making the mental leap from
the “Landlord” frame of
mind to an “Investor” men-
tality also requires a change.
Many investors entered into
real estate like I did initially,
as a landlord. They may think
they are “investing” but over
time they become a slave to
the property and the tenants and it becomes
a second job. Even if you hire a property
manager you still have to “manage the
manager”. I hear about how landlords who
put very little down are always struggling
with poor cash flow or even negative cash
flow. One tenant turnover can wipe one
year’s total cash flow. Remember this: It’s
not the monthly cash flow you make that’s
important, it’s the yearly cash flow you
keep that counts.
How Much $ Do I Need?
Rather than placing a 20% down payment
or more on buying real estate, you can
place that same amount into an interim
construction loan. It might require a little
more than the typical down payment on an
investment property, but because lenders
now require 20% down payment or more
for investors, many homes
you would buy would not
be far from the current mini-
mum interim construction
loan amount anyway. It’s
getting even more expensive
as many lenders are now re-
quiring a 25% investor down
payment to get the best rates
and terms. And dare we
predict that it will not be
long before a 30-35% down
payment or more will be re-
quired even for high credit
worthy investors? It may
already be here by the time
you read this report. Oppor-
tunities are available from as
little as $77,000! >
Sources of Funds You May Al-
ready Have.
Do you have an IRA or 401(K)?
Are they growing securely? Many
investors are converting their stag-
nant IRAs and 401(K)s to “Self-
Directed IRAs”. They then take
those IRA or 401(K) funds and
place them to work in interim
construction loan opportunities at
14-18% APR! IRA conversions
are easier and more affordable
than ever to set up or transfer if
you know the right companies to
use. The best companies we work
with do a “checkbook” style IRA
account giving you direct access
to your funds for investment. The
reward is that you can conceiv-
ably achieve much higher returns
for your retirement funds and have
the ability to use a source of funds
that have been sitting idle in most
cases to continue your real estate
investments.
What Type Homes are Being
Built?
Most investors I work with pre-
fer single family homes for their
interim construction loans. Exit
strategy is easier in a worst case
scenario, plus the demand in Texas
is found in single family homes
and townhomes. Valuations can
vary but typically we try to fo-
cus on homes that sell between
$100,000 and $200,000. Our loan to the
builder is usually 60% to 70% of the val-
ue of the home being built. Our pipeline
of builders is growing in this price range
and we remain very strict in sticking to our
funding niche on price and market loca-
tion. There are many of these opportunities
About Ron Black the funds are disbursed in stages
or “draws” as each phase of the
Investment Opportunities in
home is completed, foundation,
Dallas-Ft Worth . Austin .
roof, sheetrock, etc. If something
San Antonio . Houston should happen to the builder you
R
would have enough left in es-
on Black is a
licensed Texas crow to complete the home and
sell it or rent it to get your invest-
BROKER and
President of Texas Investor ment back. In some markets we
escrow the loan funds and em-
Homes. He is known as one
of the leading Creative New ploy private inspectors to check
each phase and verify the work
Construction Investors in sonal use and he invests
the country. Ron develops alongside his investors is being done correctly. Long
distance investors have pictures
advanced investment in many opportunities.
strategies for smaller, pas- Ron’s goal is to provide emailed to them at various stag-
es of construction. Many long
sive investors using NEW stable income and cash
Construction as his model. flow with little involve- distance investors find the in-
terim construction loans much
He creatively applies these ment from the Investor.
high cash flow strategies to Ron’s superb rela- easier to invest in than owning
real estate. And many investors
single family and multi- tionship with builders
family home investment provides his Investors tell me they make more money
loaning and with less stress than
opportunities and makes unique and fresh op-
these turn-key opportunities portunities in all major they ever did owning real estate.
Considering the high return po-
available to small investors markets across Texas and
all over the country. in other select parts of tential available, many investors
His specialty programs are the country. say that investing in this type
of lending can be much more
Lending Private funds to Ron’s motto is:
Builders such as Interim Let’s be Investors secure, profitable and less risky
than the stock market or even
Construction loans poten- Not Landlords!
tially yielding 18% APR owning real estate if structured
correctly.
and New Construction You can reach Ron at
sales to small Investors. 972-897-6190
Most of Ron’s experience TexasInvestorHomes@ NOW is the time to Loan, not
Own!
was derived from develop- GMail.com
ing real estate investment Website: www.Texas If you are stuck in an investing
rut and are looking for a posi-
programs for his per- InvestorHomes.com
tive change in your real estate
investing, you should seriously
consider the interim construc-
available in some of the top growth cit- tion loan investment option. If you have
ies. Texas has four of the top 10 cities in never invested in real estate this is an easy
America predicted for growth over the next way to get started in today’s new real estate
few years. market. I would encourage you to focus on
being an Investor and not a Landlord with
Risk vs. Reward all your new real estate investment oppor-
Let’s talk about risk. If you invest $100,000 tunities. Change the way you invest to re-
in the stock market is it risky? Can you lose flect today’s NEW market conditions and
it all? With single family home interim con- you will prosper!
struction lending it would be extremely rare
for you to lose it all. And if done correctly,
I can safely say that you can likely NEVER
lose all your investment. Yes, there is some
risk but let’s talk about two of the reasons Further Information and Comments:
this is a reasonably secure opportunity. To learn more about interim construction
First, we are always a first position lien lending in today’s NEW real estate market
holder of the property. We don’t usually and creative real estate investing, contact:
invest in a second position loan because of Ron Black, Texas Investor Homes, 972-
the higher risk. Second, we don’t usually 897-6190, TexasInvestorHomes@GMail.
invest all the funds at once. In many cases com, www.TexasInvestorHomes.com
 Home Replay’s Property Analyzer
by Anita Woods
Don’t buy your next property without it!
money pit rather than an investment ve-
hicle. The best solution for this problem is

T here’s no doubt the real estate market

has taken a hit in recent years; how-
ever, it’s still a viable way to increase your
investment portfolio. One area that is
expected to grow is the rehab
market. Gary Geist, rehabber
and owner of Home Replay,
LLC believes that it will
continue to see growth over
the next few years. And
with the advantage of more
than 80 years experience in
the real estate investment
arena, he just might know
a thing or two about it!
Whether you’re a nov-
ice or a professional real estate in-
vestor, you’re already aware of the time
involved in choosing those properties that
offer the greatest return on your investment
(ROI). You get a list of available proper-
ties, visit each of them to see what needs to
be done, then sit down and review the data
to determine which ones will be the most
profitable.
This process takes quite a bit
of time, but as you know it
is also a task that’s necessary
to determine your profit mar-
gin. One factor involved in
purchasing a home that inves-
tors often overlook or discount
is the emotional factor, but no
matter how professional you
may be, it can sometimes be dif-
ficult to rule out the emotional
appeal of a home.
This appeal can interfere with
the objectivity that’s necessary when in-
vesting in real estate. If you let your emo-
tions weigh in too heavily on your decision
to purchase, you just might end up with a
to make all of your purchasing decisions
based on the same set of criteria. This is
how you remove the emotional factor and
deal with just the numbers. Home Replay,
LLC has created a powerful tool that will
help you do just this.
The Property Analyzer is an easy-to-use
software program that will drastically re-
duce the time involved in deciding which
properties to invest in. Using well-defined
criteria, established by experienced rehab-
bers, the Property Analyzer will help you
choose the homes that will produce the
greatest return on your investment.
Here’s how it works:
The Property Analyzer program estab-
lishes a baseline analysis of nine sectors of
the home:
●curb appeal
●windows and doors
Continued on pg. 37

• All local business networking events and

groups on one calendar.
• 12,000+ local entrepreneurs, business owners
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CEO and Founder

Realty411Guide.com PAGE 27 • 2011 reWEALTHmag.com

 MMG Capital Finds Opportunity
Within the Financial Storm
While investment
bankers hold on
tight to funds,
savvy investors
enjoy double-digit
returns backed by
prime real estate.
by Matt Malouf | edited by Anita Cooper
photography by Sam Green
A
fter a few years of managing rentals, many real
estate investors decide to take a step back from
actively managing tenants. Instead, they begin to
work their capital by lending it to others for their
purchases of real property.
Experienced investors know that managing rentals can be a
chore. They also know that owning real estate in a down market
offers more potential risk than at other times, so it’s no surprise that
after a while, real estate enthusiasts seek alternative investments
for their portfolio. This is where Chris Gleason steps in.
As partner and co-founder of MMG Capital, Gleason’s job is
to match investors with conservative investment opportunities
that can withstand the risks associated with today’s volatile
environment.
“If you understand what’s happening to our country, you can
actually capitalize on the opportunities that are being presented,”
he explains.
Robert Marlin, a mentor and advisor to MMG Capital, recently
explained to Gleason that the real estate rule of “location, location,
location” is not as important today. Now, it’s all about timing,
Realty411Guide.com PAGE 29 • 2011 reWEALTHmag.com
timing, timing.
And in Gleason’s opinion, the time to be actively purchasing real
estate has passed; now it is time to move on to a passive strategy,
one more fitting for these turbulent times.
Investors are invited to come alongside MMG Capital as a
private money lender. The opportunity to earn double-digit returns
with little to no risk is an investor’s dream. That dream can be
realized through working with the creative finance team at MMG
Capital.
MMG Capital was created to leverage the numerous opportunities
available in today’s market as a result of the global credit crunch in
the financial world. The creative real estate and asset-based finance
company is fueled by the creativity to mesh win/win economic
strategies for both investors and borrowers.
For those seeking funding solutions, MMG Capital gives
borrowers flexibility. Because they are an asset-based lender,
MMG Capital can fund deals quickly and without concern for
credit score, financial reserves or income verification.
One of the problems for those heavily involved in real estate or
for those who are self employed is lack of income verification. >
 Another issue for many investors is Gleason, who obtained his bachelor’s in the years to come.” This investment
liquidity. Gleason lends to high-net worth degree in finance from the University philosophy reveals just how conservatively
individuals, those who already have of Southern California and an MBA MMG Capital values their assets in order
significant equity in real estate or other in Financial Planning from California to properly secure their investor’s money
assets. Lutheran University, has direct experience from danger.
MMG offers a lifeline to deserving with several alternative investing strategies. “An important part of investing is
individuals in today’s hostile financial He has owned dozens of properties planning for the worst-case scenario,”
climate. throughout the country and is well versed Gleason explains. “In the case of lending,
One noteworthy aspect of MMG in multiple real estate scenarios. assuming you’ve made a good loan, the
Capital’s approach towards investors is His flagship office, located in Florida worst case scenario is that you could wind
their focus on collaboration. Using a one- and operated by a partner, allows MMG up having to foreclose on your borrower.”
on-one approach, investors are encouraged Capital the ability to do something very Foreclosure may drive fears into the
to participate, learn and grow with MMG few hard-money lenders can do: fund deals mind’s of investors, but Gleason explains
Capital. across the nation. that foreclosure is merely your legal
I n v e s t o r s   c a n   h a n d - p i c k   t h o s e Although the company’s wide area of right as a lender to force liquidation of
investments they wish to be a part of. This operation seems risky, MMG Capital is your collateral in order to recoup your
provides individuals with the benefit of conservative in its investing approach. investment because your borrower failed to
having a direct impact on their investment “Now isn’t the time to be taking risks,” uphold their obligation to repay.
portfolio, rather than simply giving MMG Gleason says, adding, “Now is the time For an investor, a foreclosure on an
Capital their money and then wondering to be guarding your capital and taking asset with lots of equity is not viewed as
how it’s being managed. a conservative approach. Nobody really a catastrophe, instead it is merely seen as a
Most of the investments, which I knows how bad things are going to get temporary cycle in the life of an investment
reviewed with Gleason in his asset. The real estate is still
Southern California office, there, it has not vanished
averaged less than a 40% loan-
to-value ratio and spewed 12% MMG Capital Provides into thin air like paper assets
do in a turbulent market
to 14% returns, the loan was
secured, in some cases, by
Investors with Options turn.
Perhaps the most
multiple properties. unique benefit to working
“We leave at least a 60% Following are some key aspects that make MMG with MMG Capital is
equity cushion in there, we Capital so unique in the marketplace. their investors actually
want the borrower taking more review potential deals
risk than we are,” Gleason and give them a thumbs
explains. While he admits • MMG Capital employs their decades of frontline up or thumbs down. This
that no investment firm in the experience with investors and professionals on the allows individuals to
world can guarantee a return, ground to research the market and find only the invest the amount they are
MMG’s conservative approach comfortable with, in the
ensures an extremely low risk
very best investments. time frame that suits them,
to investors and offers “one • When comparing investments made by similar with an investment they can
of the best risk-return ratios lenders, MMG Capital is the most conservative be proud to place in their
available in the marketplace.” portfolio.
company of its kind.
“Safety, security and
Here is an example of • Investors call the shots when it comes to their consistency are three words
a typical MMG Capital money. They decide how much and where they want that we use around our
investment transaction: office all the time,” Gleason
to place their hard-earned investment capital by
says. “Our investors sleep
A borrower owns a $1 choosing the specific deals they want to be involved well at night because they
million property and needs in. know that they aren’t going
some cash to purchase • MMG Capital offers some liquidity in an illiquid to wake up in the morning
inventory for their business. to find out that their
MMG Capital will make environment where investors have the ability to get investment is in trouble,”
a $200,000 loan to them their capital back when they need access to it. Gleason says.
and secure it with their $1 • No required minimum investment — the comfort MMG Capital offers
million property. Even if an investment vehicle
the property loses half of its level MMG Capital provides is second to none. unlike any other in the
value over the next 12 to 24 • A nationwide network of mortgage brokers marketplace. It is one that
months, the $200,000 MMG ensures that there is never a shortage of opportunities will pay an investor a
Capital loan is still secured consistent return and offer
by $500,000 of equity. for analysis by MMG Capital, of which only the best them the protection of a
As an investor himself, deals are brought to their investors. well-secured loan.
 Discover
MMG Capital’s
Liquidity
Program

A
re you aware
that with as
little as a few
thousand
dollars an investor can
own a share of a loan
that is secured by luxury
or commercial real estate
generating up to double-
digit returns? Yes.
If you are an investor
fed up with dismal returns
at your lending institution,
it’s time to introduce
you to MMG Capital’s
Liquidity Program. This
program, automatically
extended to every MMG
Capital investor, ensures
that if liquidity is needed,
the investor can get their
cash back; even in the
middle of the term of the
loan.
For example, let’s say
an investor has money
trapped in a CD, or a
money market account
bringing in the standard
0 . 7 5 % ,   i t ’s   b a s i c a l l y
just sitting there losing
purchasing power every
day. The investor wants to
put the money to work in
a safe, secure investment,
but they are a busy
professional: They have
a company to run, family
to relax with, vacations
to plan and a life to live.
What can investors do?
They can lend their money
out to other high-net worth
individuals who qualify
for the MMG Capital’s
funding program. time with only a few month’s notice. and one where you’re making double digit
They, along with other investors, can MMG’s Capital Liquidity Program returns, month after month, is a simple
participate in assisting other individuals offers flexible options for investors who phone call to MMG Capital. Contact us
who have substantial wealth and assets, seek shorter-term exit strategies, but realize today and see what double-digit returns can
but who may not qualify for traditional that real estate is still the best place to store do for you.
funding. their money.
One of the best and most unique aspects If you are an investor facing dismal For additional information about Chris
of this program is that investors can returns on your hard-earned money, all that Gleason or MMG Capital, please contact:
withdraw their principal investment at any really stands between your current situation 310.295.1121
Realty411Guide.com PAGE 31 • 2011 reWEALTHmag.com
 Market Spotlight: BIRMINGHAM
LOCATION:
Birmingham, Ala.
COMPANY:
Premier Equity Group
CONTACT: sales and general listings. Since we pay
Chris Donaldson
ph: (205) 201-6663
Question: How is your market handling
the economic slowdown?
Chris: Birmingham is not a “peak and val-
ley” market. We are slow but steady in ap-
preciation as well as decline. We average
about 2.5% per year. We also have a huge
workforce to keep our economy stable.
The largest employer, the University of Al-
abama at Birmingham, has 53,000 students
and employees. We also have one of the top
five hospitals in the nation. In fact, many
professional athletes and entertainers come
to Birmingham to be seen by Dr. James An-
drews, who was named the “Most Valuable
Person in Sports” by CNBC. We also have
several large auto plants, Honda, Mercedes
and Hyundai, all contributing to our labor
markets. Birmingham’s charm, low cost
of living and being on the cutting-edge of
technology is positioning us to compete on
a global scale.
Q: What kind of opportunities are you
LARGE EQUITY AND POSITIVE CA$H FLOW
Realty411Guide.com
seeing right now in Birmingham? Chris: Our products work, plus we always
Chris: We are acquiring homes from asset try to under promise and over deliver. If
managers, banks, foreclosure sources, short you are one of our investors, you are on our
team and you have a complete crew on the
cash and have a good reputation for closing ground. This is so important since we all
quick, we get excellent deals. This allows know that property management can be the
us to pass on the savings to our clients. For difference between a good and bad invest-
example, we are able to sell
all-brick 4 bedroom, 2 bath The Donaldson family
homes that are about 1,500
square feet and recently
r e m o d e l e d    f o r   a r o u n d
$65,000. These homes are
already under management
and cash flowing with rents
at $850 to $900. These
houses have had past retail
sales in the low $100,000s
and are incredible deals.
We have been able to nar-
row our searches down to
the most desirable neigh-
borhoods and in the best school systems. ment. We always invite our clients to town
In fact, our main area of focus is where I to see our operation and get to know us on
personally grew up through elementary a more personal level. We like to think that
and high school. our Southern Hospitality does us good ser-
vice. Also, many people have no idea how
Q: What is the best part about being an beautiful Alabama and Birmingham are.
investor in your market? It’s a great place to live and raise a family.
PAGE 32 • 2011 reWEALTHmag.com
Q Why should investors from
afar invest in Birmingham?
Chris: For the last four years
we have been selling turn-key
homes to out-of-state and out-
of-country investors. It is our
main area of focus and basi-
cally our entire client base.
We have learned and adapted
to the needs of someone who
may have never stood in front
of their property. We do our
best to provide pictures, video,
Google Earth snapshots, any-
thing to give the clients the best
information available for their
due diligence. We are with the
home from beginning to end.
We purchase it, we remodel, we
place the tenant, we put it un-
der management. So, we really
know the house and occupants
better than anyone.
Q: What makes your compa-
ny unique?
Chris: We are normal people try-
ing to stand out in a sometimes
very difficult and overcrowded
business. I think many people
can relate to this statement.
This industry has been ravaged
by unscrupulous sales, bad
foreclosures, market declines,
mortgage changes and even
federal law. Despite all that, we
have been able to weather these
storms and continue to provide
excellent products. When you
meet us, you’ll see we are not
living the rich life, driving fan-
cy cars. We are just family men
trying to be good fathers and
husbands.
Q: What kind of programs do
you currently offer?
Chris: Right now, we have a
cash purchase discount and we
also offer very generous refer-
ral fees. The buy-and-refi days
seem to be over, but we are still
talking to mortgage companies
to try and find the best programs
for our buyers.
Q: Do you have your own in-
house management?
Chris: Yes, Impact Realty Advi-
Realty411Guide.com
sors. We use a web-based man-
agement software called Prop-
erty Ware. It allows the owners
to see all of their statements,
work orders and leases in their
own password protected portal.
It also has allowed us to move
to direct deposit systems and
many other great improvements
to help our growth. Also, our
leasing team is about as good
as you will find. We operate at
near 100% occupancy unless
there is a house undergoing re-
pairs or waiting on an inspec-
tion.
Q: What investing tips do you
have for our readers?
A: Get out there and visit the
area you are going to invest in.
Make sure your property man-
agement team is in place and
are willing to help. Never be
nervous to ask questions and
inquire about school systems,
crime, taxes and other impor-
tant issues. Many people will
buy on an impulse, don’t do it.
In the world of investing in sin-
gle family homes, you need to
take the “get rich slow” route.
Take it one step at a time and
get with someone you trust or
have built a relationship with.
Q: What is your real estate
or management philosophy?
Chris: I read as a young man
that 80% of the world’s mil-
lionaires were in real estate. I
think that day I became a real
estate investor, at least in mind.
It was always a goal, something
that I knew would be in my fu-
ture. Now that it is my job, I’ve
learned to love the business. I
truly believe in our market, I
buy homes next to the ones we
sell, I own apartments in our ar-
eas of focus. It is a good feeling
to drive down a street where we
remodeled two or three houses
and know that we were partly
responsible for the renewed in-
terest in the neighborhood. If I
can do all that and give my fam-
ily a comfortable retirement, I
think I will have won.
(796-3896)
PAGE 33 • 2011 reWEALTHmag.com

LOCATION:
Cleveland, Ohio
COMPANY:
BH&R Properties
RichFromRentals.com
CONTACT: ment, The Lakefront West Proj-
Sean Whalen, CEO
ph: (216) 240-7363
Question: How is your market handling
the economic slowdown?
Sean: The slowdown has actually been
great for business, but it’s a catch-22 in
that you have to have cash in order to take
advantage of the market. We are fortunate
to be in a positive position and are able to
take advantage of the down market and
low prices. In turn we are able to then pass
these savings on to our investors.
Q: What kind of opportunities are you
seeing right now?
Sean: Due to the foreclosure crisis, we are
seeing prices from 30 years ago. The hous-
ing stock, like the rest of the nation is plen-
tiful. Due to the strict lending standards,
we are finding a large demand by renters
who are unable to finance a home purchase
and therefore must rent.
Q. What is the best part of being an
investor in Cleveland, Ohio?
Sean: The best part is seeing all the growth
taking place. I think Cleveland is the only
Market Spotlight: CLEVELAND
market in the nation with this
much construction going on. We
have a new lakefront develop-
ect, a new billion dollar casino,
as well as a new shoreway proj-
ect. Plus, there is a new conven-
tion center being built and additions to the
Cleveland hospital as well as a new univer-
sity health campus.
Q: Why should investors from afar in-
vest in your area?
Sean: Cleveland is growing and it has a rich
history. It has one of the oldest and most es-
tablished arts culture
in the nation. The
Cleveland Museum
of Art is undergoing
a $150 million dollar
addition and renova-
tion. Also, Playhouse
Square is the second largest live theater
district in the nation. Cleveland is located
on the shores of Lake Erie, and it has the
largest metropolitan lakefront in the world.
We also have the third most visited park
system in the country, Cuyahoga Valley, a
national park with over 22,000 acres. Our
city is both affordable and family friendly.
Q: What makes your company unique?
Sean: The owners have over 100 years of
combined experience in real estate and
have a large portfolio with homes rang-
ing from $35,000 to apartment complexes
worth millions. We also have 40 years of
combined experience with new retail com-
mercial construction and management. Our
deals are priced below market value with
great cash flow and appreciation.
Q. Do you have your own in-house man-
agement?
Sean: I think management is the most im-
portant key to success. Your investment is
only as good as the management behind it.
We have our own in-house
management staff, which is
overseen by our company
Q: What is your real estate
or management philoso-
phy?
Sean: Well, we only buy in
GOOD areas. This can’t be stressed enough.
By buying in solid and safe areas, it makes
management that much easier. You can
then attract the type of clientele you want
to rent your units. We also stress buying in
predominantly owner-occupied areas.
For more information, visit:
www.RichFromRentals.com
or www.BuyHoldRent.com
 Monopoly on Baltic... pg. 15
seller financing (also called
land contracts, contracts for
deed, or installment contracts).
The investor’s name remains
on the deed for the term of the
agreement while the owner-
occupant makes monthly pay-
ments. The owner-occupant
also has full responsibility for
taxes, repairs, and upkeep of
the property. At the end of the
term (15 to 20 years) the deed
is transferred to the owner-oc-
cupant. Meanwhile the investor
makes a significant return on
the initial investment.
For Example:
Bulk purchase price: companies charge fees. Finally,
$12,000 (one house)
Sale price: $37,000
Down payment: $1,000
Financed price: $36,000
(15-year, 9.5% interest)
Amortized over 15 years: your golden years? Or will
$67,500
Less purchase price: -12,000
Return on investment:
$55,500
Passive investors who want
access to the great returns, but
don’t want to set up a business
to sell houses to individuals,
can buy into the business. They
purchase the land contracts and
the underlying properties from
active investors who are look-
ing for cash. These contracts
are sold at a discount, which
offers even more upside for
the passive investor. For ex-
ample, a 15-year, 9.5% interest
contract with a face value of
$36,000, bringing
in $375/month, can
be had for $26,500.
Over its term, the
contract will bring
in $67,500; that is
a 40% return on in-
vestment.
Buyer Beware
Bulk REO is an
exciting and fast-
paced business, but as with any
potentially high return invest-
ment, there are many charla-
Realty411Guide.com
tans. The internet is full of web
Investment Tools
sites purporting to sell bulk
REO lists; however, some of
these lists are fraudulent, and
Proven to Work!
others contain truly unsellable
properties — burned out shells,
vacant lots and uninhabitable
mobile homes. In order to
navigate this challenging mar- Rental Property Analyzer is a great piece
ketplace, trusted mentorship
of software designed to eliminate the
from a reputable list broker is
imperative. Do your diligence. guess work out of purchasing property
Ask for references. A reputable
company will happily provide
more than five references from
non-relatives! Find out about
after sale support and get it in
writing. Ask about fees. Some
companies hide their fees, oth-
ers offer full disclosure, but all
take the plunge. The market for
severely undervalued homes
will dry up. Will you be the
person with an income produc-
ing portfolio to see you through
www.SmartInvestorTool.com
you be the person saying, “If
only….”
Why Good Folks
Can’t Get Loans Developed by the
1. Banks don’t make loans for founders of
less than $60,000. The value of HomeReplay.com,
most of the bank-owned homes this software tool:
are $50,000 or less. Without •Takes the guess
private financing, these houses
work out of buying
will continue to sit vacant.
2. Many low-income fami- •Compares multiple
lies struggle to keep a good properties at once for quick best-buy decisions
credit score. Banks don’t like •Accounts for hidden costs to prevent
this. The savvy private investor costly rehab surprises at the end of the job
knows that credit scores do not
predict the ability of a person to •Provides estimate of current property
pay a mortgage. The monthly value based on the condition of property
payment is the predic- •Provides solid repair cost estimates
tor, right-priced loans for renovation projects
get repaid.
•Supports up to 20 financial options
Lori Greymont is for comparison purposes
CEO of Summit As- •Has charts, graphs, and tables for cash flow
sets Group. She offers analysis and future profit projections
educational presenta-
•Projects the After Repair Value of a property
tions around the U.S.
plus trains and men- based on size, location, and rehab work
tors people new to bulk
REOs. Her company
Invest In Your Business, Invest in Your Future,
sells bulk lists and seasoned
land contracts. For more infor- Invest in the Rental Property Analyzer
mation, call 1-888-440-6826.
PAGE 35 • 2011 reWEALTHmag.com
 Market Spotlight: INDIANAPOLIS

���������������
LOCATION:
Indianapolis, Ind.
COMPANY:
about fires, hurricanes or natural disasters. Q: Why should investors buy in India-
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RealEstateDone4You.com
CONTACT:
Our clients come from New Hampshire to
Marina Del Rey, Calif., as they have found
napolis?
Michael: It’s the perfect storm. Indy has

��������
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� ������������� ���� ����� ��� without stock market exposure, or for those our company has spent the time and mon-
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ket handling the economic
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sense. programs available?
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���� ����� ��� ����� �������� ���great ��� for any business... call to learn how!
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(mention code RP2R2010 to get an application)

562-443-7042
Award Winning National
Relocation Specialist
Most Outbound Referrals for Prudential CA. Realty 2009 Matt Malouf,
SFR, RSPS, GREEN
investwithmatt.com Lic # 01811908
Realty411Guide.com PAGE 36 • 2011 reWEALTHmag.com
Michael: We have a mortgage team that
can assist investors and can get almost any
deal done. With that said, our business is
typically 70% cash. The properties are too
easy to acquire for cash at these prices.
Also, we encourage our clients to check
out rolling over their IRA to a Roth and in-
vesting with that, that way, their monthly
rental income is tax-free. For more infor-
mation on that, check out our free ebook:
www.RothIRARealEstate.com.
Q: What tips do you have for us?
Michael: It’s all about relationships. We
urge readers to contact us, have a conver-
sation, come out and take a visit and see
if there is a match. Much of our business
comes from our clients in California, so
I’m out there often. Investors can set up a
meeting with me while I’m there.
Q: What is your real estate or manage-
ment philosophy?
Michael: Respect. It is necessary, but often
uncommon in our business, specifically
when dealing with tenants. Our investors
want performance and as a property man-
agement company we treat our clients with
respect, as it is essential to keep a property
maintained and performing.
Home Replay’s Property Analyzer, pg. 27
●roof and foundation
●plumbing and electric
●HVAC (heating, ventila-
tion, air conditioning)
●walls and ceilings
●floor
●kitchen
●bath
As you walk through a
home, you will rate each
of the nine areas from zero
to five, with zero stipulating that no repairs
are needed in that area. Then, when you’re
ready to use the software, you simply en-
ter a small amount of information on each
property (up to eight homes can be com-
pared), stipulate the financing options and
establish a few investment rules and fixed
expenses.
The software will use the data you’ve
entered, which includes information such
as where the house is located, the ratings
you’ve given each home, square footage,
etc., to calculate the costs involved and po-
tential profits derived from the deal. The
final calculations are then displayed in an
easy-to-read and understand format, mak-
ing your buying decision that much easier.
The Property Analyzer program is easily
customized to suit each real estate market
and can help you quickly
determine how changes
such as the offer price or
financing terms will af-
fect your investment op-
tions.
If you’re a REALTOR®
or listing agent, the Prop-
erty Analyzer can help
you find those homes,
which will suit the in-
vestment needs of your clients — making
your phone ring off the hook with investors
who want to hire you!
What the Property Analyzer program
does is simply prevent you from buying
the wrong property. And in the current eco-
nomic climate, making informed financial
decisions can make all the difference be-
tween keeping and losing your investment
capital. 
The Property Analyzer in excel version
is available on www.HomeReplay.com.
A web version is also available and can be
obtained at www.SmartInvestorTool.com
For more information on how the Prop-
erty Analyzer can increase your profits,
contact Gary Geist at 202-841-1821.

Fortunes in Seller Financing

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Realty411Guide.com PAGE 37 • 2011 reWEALTHmag.com

F
by Mike Woo

rom today’s date until 2014,

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

Commercial Trends Lead Savvy

Investors toward Success
mortgages are going to reset for resi-
dential home owners. This will severely
drop housing prices in the foreclosure
and shorts sales markets and make life a
whole lot harder for residential flippers
in California. It’s another potential for
disaster for both investors, speculators and a strong movement in the hospitality busi-
the American people.
So many investors are
very much involved
with short sales and the
foreclosure markets,
its a very popular place
to be right now. But
being popular is not al-
ways going to lead you
to success. Many of
us in today’s economy
should strive do less
popular applications
and look for the up-
coming trends. Warren
Mike Woo
Buffet says, “Be fearful
when people are greedy
and greedy when people are fearful.”
Longfin Investments has identified a
trend in the commercial marketplace.
Realty411Guide.com
see our views on cash flow.
Longfin Investment Solutions helps
numerous investors in locating the best
properties nationally. Our commercial fo-
cus is on apartment complexes and hotels.
Over the last three months there has been
ness from both the buyers and
sellers. Due to the increase of
the stock market from last year,
which is a rebound from the
decline of 2008, hedge funds
and retirement fund managers
have been infused with cash
and are purchasing under-
valued assets that require little
maintenance or work. Since
these hedge funds, private
equity funds, REITs and pen-
sion fund managers are not
investors and are not inclined
to manage a serious reposition
or solve a human problem, they
prefer to purchase properties
that are performing, have high demand
and have current occupancy. They have
been very active in A/B grade apartment
PAGE 39 • 2011 reWEALTHmag.com
Arizona and Florida. Longfin Invest-
ment Solutions provides these type of
opportunities for clients. Depending upon
location, we can often provide properties
at $0.50 of replacement cost or previ-
ous value. Our system enables the buyer
to purchase at a discount and not have
to manage a chain of referrals or sign a
bunch of disclosures for strangers. They
deal directly with us as the principal.
For those readers who may have con-
nections with buyers who are looking
for apartment complexes and hotels, let
us know. Longfin Investment Solutions
is seeking marketing partners who are
interested in making six-digit profit shares
on a single transaction. Please visit our
website and get connected to our classes
at: www.longfininvestments.com.
In closing, I would like to share our
company motto: “We are measured by the
lives that we touch and the influence and
leadership that we can bring to the people
who want to learn more and desire to
unlock their true potential.”
To reach Mike Woo, please email him at:
mike@longfininvestments.com
I
by Linda Pliagas
t was a beautiful sunny morning in
Arizona on the day the Ultimate In-
vestor’s Tour was planned. Dozens
of eager investors met up in Tempe
and loaded a sleek black bus in
search of discounted properties in Phoenix,
Meza, Gilbert and Queen Creek. The team
at Black Belt Investors, led by Sensei Gil-
liland and his charming wife, Annamaria,
organized an educational event that drew
investors from California, Nevada, Michi-
gan, Utah and Indiana.
The first stop on the tour early Sunday
morning was a trip to meet Sensei’s local
Investors from 4 States Hit AZ
for Black Belt’s Property Tour
“power team”. Inside his luxurious modern
office in Mesa, Sensei introduced his con-
tractor, listing agent, property manager and
insurance specialist. Because Black Belt
Investors specializes in buying locally at
the county’s court house steps, the proper-
ties are at absolute “cash only” discounts.
What makes Sensei’s real estate invest-
ing program unique is the fix-and-flip sys-
tem he has personally developed to help
his investors generate cash today, which
can then be transferred into creating wealth
tomorrow.
This Remote Rehabbing system is ideal
for those investors who may not have the
time or experience to buy, fix and flip prop-
erties. They are seeking the help of Black
Belt Investors to quickly earn substantial
sums of cash without having to do any of
the leg work. It’s also perfect for the buy-
and-hold strategist who desires massive
cash flow through very inexpensive newer
houses.
Sensei’s Remote Rehabbing program
can be activated
with a simple phone
call. Either Sensei
or one of his Suc-
cess Managers will
spend time with
you to help accom-
plish your real es-
tate goals.
With prices start-
Realty411Guide.com
ing at just $37,000 it’s no wonder that the very well. On average the time to get a
team has transacted over 900 deals this house occupied is between three to six
year alone! weeks.
Investors from around the nation, as well “Focusing our sights on new houses in
as abroad, are attracted to the Phoenix mar- desirable subdivisions attract better renters,
ket because they are able to secure practi- which give the investors more stability,”
cally brand new homes for approximately Sensei explained during his tour.
50% below builder’s cost.
Next, Black Belt Investors will take care
of the entire rehab process after the prop-
erty is purchased at auction. Their goal is
not to sink a lot of money into the rehab
but merely to bring the property up to
standards to entice an owner-occupant to
purchase the property from the investor at
market value.
“We want to get in and get out,” Sensei
admits of the rehab process. Often the prop-
erty will only require cosmetic repairs: new
paint, new carpet and minor landscaping.
Speed is important in the fix-and-flip busi- If you’re ready for a new way of profit-
ness, every day the property sits, it eats into ing from real estate, be sure to attend the
the investors’ pockets. Black Belt Investors next Investor’s Tour to learn if Remote Re-
knows how important time is, therefore the habbing is right for you.
period between acqui- Black Belt Investors is hosting another
sition and deposition Investor’s Tour in March. The event will
takes approximately 97 consist of a one day educational confer-
days with typical profits ence. The next day, investors will spend
ranging anywhere from time evaluating properties and discussing
$8,000 to $25,000 per the best way to generate cash and build
transaction. wealth in today’s Phoenix market.
For the buy-and-hold
strategist, the rental For more information, please call Black
market is treating them Belt Investors: 951-280-1900
PAGE 40 • 2011 reWEALTHmag.com
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 Are We Forgetting
�������������������������������������
How to Communicate?
����������������������������������������������������������������������������

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

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

���������������������������������������������������
Despite the new technology, my original concern remains the same:
The failure to communicate is growing and it is frustrating.
������������������������������������� ��������������������������������������������� ������ ����� ����� ����� ���� �������� ���
������������������������������������������� ����������� ��������� �������� ����� ������ �������������������������������������������
��������������� ��������������������������������������� �������������������������������������������
�� �����
versus ����� ���������� ���
“irresponsibility.” �����that
I admit �����there������������������������������������������
client thinks that something is wrong ������������������������������������������
and pendable? Who can you trust is more than
an age bias in addition to a training and���������������������������������������������
is����������������������������������������� they worry. Answering calls and emails �������������������������������������������
a slogan now. It is a normal defense for do-
�����������������������������������������
upbringing bias. ������������� ��������
takes little time. ���������
Failure to return����
them ���������
cre- ing ������ ����� ����� ��� ����� �������
business.
���������� ����������� ������� ���������� �������������������������������������������
Let me share some of my pet peeves and ates a lot more work as they have a ten- ����������������������������������������
One way to measure honesty is respon-
������� ����� ������ � ��� ���������� ��� ���� ���������� �������� ���� ���� ������� ��� �����
see if your age and attitude lets you relate dency to build and increase in volume ������������ and siveness. Honest people return phone calls
�������������������������������������� ������� ���� ����� ����� ����� ���������� ��� �������������������������������������������
to some of my biases. Let’s start with a may create stress as you worry about the promptly and answer emails quickly. After
������������������������������������������ ������������������������������������������ �������������������������������������������
simple thing like returning phone calls�������������������������������������������
����������������������������������
calls you don’t return. all, they have nothing to hide and they re-
�������������������������������������������
or �����
the new communication entry: emails. “Maybe they are mad at me, maybe they ally want your business and they want to
������� �� ����� ��� ����� �� ������ ������������������������������������������ ��������������������������������������������
During my tenure in the securities industry, want to close their account, maybe they answer all your questions. At least that’s
������������������������������������������� ���������������������������������������� �����������������������������������������
I���������
followed the lead of����
������������ the�������������
most successful�����������������������������������������
want to sue me, maybe it’s a creditor, etc...” how I see it.
����������������������������������������
brokers
������ and learned����
��� ������ how important
����� it is to���������������������������
���������� Worry makes it worse. Call immediately I guess I am old fashion but I don’t like
������������������������������������������
return ALL calls on the same day that they ��������������������������������������
��������������������������������������� and find out the reason for the call. It might to be put on hold, I want to speak to a real
��������������������������������������������
are received. So if a client or a prospect�������������������������������������������
���������������������������������������� even be good news. person on the phone, and I want to be able
�������������������������������������������
called me and I ����
��� ����������� was����������
busy with���another,
����� I��������� Remember
����� ����how we used
�������� ����to write letters
��������� to talk to people when I call them or have
�����������������������������������������
was always quick to return calls. The rea-��������
������������������������������������������ to family,
��� ����friends and clients?
��������� Then you ������������������������������������������
���� ��������� had them return the call the same day.
son is simple: I didn’t know what they�������������������������������������������
�������������������������������������� to wait for days for a response. We used to ����� �������
����� How about you? Do����
����� �������� you�����
think we are
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that you are there for them. The hardest instruction “click here to register.” That’s anyone would like to have an advance copy
calls to make, as well as return, are those
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made after a sudden decline in the market. Despite the new technology, my original and Spirit,” just email or phone me at
I remember making calls to clients telling concern remains the same: The failure to 949-910-6028 and I will provide you with
them about losses in their investments and communicate is growing and it is frustrat- the content for free.
Realty411Guide.com PAGE 42 • 2011 reWEALTHmag.com
Success & Natural Law
A MAN LOOKED HEAVENWARD AND SPOKE UNTO THE UNIVERSE, CRYING: “I EXIST!” WHEREUPON,
THE UNIVERSE (AFTER A WHILE) REPLIED: “SIR, I WILL ACKNOWLEDGE THAT STATEMENT; BUT
DON’T PRESUME THAT I POSSESS ANY SENSE OF RESPONSIBILITY IN THAT REGARD.”
by Bill Gatten
Let’s take a look
at the eternal and
i n f l e x i b l e  r u l e s
that control every
aspect of our role
and circumstances within the order of the
cosmos, along with the crucial part of our
beingness that the Universe plays in getting
you and me exactly what we need out of
Life.
Although fully accessible twenty-four
houses a day, bear in mind that Universal
Law lies totally beyond our realm of re-
ality…just beyond the quantum physical
realm in what is known as the extra-local
or implicate realty, and is absolute, non-
malleable and directly perti-
nent to the tiniest aspect of our
physical existence. “No one can ever have a true need that is not fulfilled.”
A far too often disregarded
fact is that Universal Law, irrespective of
its source, controls not only matter (the
stuff we can see and touch), but also sound
waves, light waves, radio waves and hu-
man thought, as generated by the written
and spoken human word.
In other words, if we but ‘want’ some-
thing we can just say so and hope for the
best: But if we truly ‘need’ something (big
difference), we merely have to say so, and
it is given to us.
No one can ever have a true need that is
not fulfilled.
This phenomenon is the result of the un-
erring ‘functional objective’ of the Cosmos
itself: i.e., an uncaring obligation to fulfill
every need on every level without regard to
you or me or past prophets as individuals.
The Universe (‘God,’ if you wish) simply
will not and cannot allow a true necessity
to go unfilled.
And neither will it honor every idle hope,
prayer, wish or desire to be uttered by those
who are unconvinced that what they’re
asking for is truly ‘needed.’ It’s only when
something cannot be lived without that it is
absolutely guaranteed to be given to us.
Nature Abhors a Vacuum
Here’s a relevant but admittedly corny
analogy: Did you ever squeeze more tooth-
paste out of the tube than you meant to,
and then feel a bit of a twinge at having
wasted something? If so, were you aware
that when that happened, you could have
positioned the tube’s opening against the
wastefully extruded goop and sucked it
right back into the tube? In order to do so,
all you needed was to gently, and (very)
patiently, apply pressure to the sides of the
flattened part of the tube, creating a nega-
tive pressure at the tube’s opening. If we
don’t rush the process and we trust in natu-
ral law, the accidental spurt is drawn back
to where it came from.
This natural phenomenon quite obvious-
ly occurs because our squeezing creates a
vacuum, thus allowing Nature to do its
job by filling that vacuum with what-
ever is closest at hand.
Given the right preparation (i.e., mov-
ing the opening adjacent to the spill),
time (patience) and expectation (know-
ing how natural law works), any vacuum
we create within this sub-quantum physi-
cal existence of ours — anywhere in the
universe — will inevitably be filled with
whatever we introduce it to. It’s only when
we attempt to short-circuit the “Law” and
force our will upon something as massive,
— Stephen Crane (circa 1810)
uncaring and perfect as the Universe, that
our hopes and prayers remain ineffective
and unanswered.
Note carefully that despite the fact that
we don’t always get exactly what we want,
the vacuums we create are ALWAYS re-
filled (albeit, too often with little of any-
thing of significant value or importance due
to improper planning). It is imperative that
when making demands of the Universe that
we — 1) know in advance exactly what we
need, 2) why we need it, 3) what we’re go-
ing to do with it when it arrives, and 4) that
we have a place for it. That’s it! Nothing
more is required.
One must come to grips with the simple
fact that, no matter how many rain dances
we do, or how many gourds we shake at
the sky, how many virgins we toss down a
volcano neck, we simply cannot control the
Universe, we can only seek to understand
more about it, and to develop an absolute
faith in it.
For example, no matter how hard he
might try, a ship’s captain cannot control
the sea; but by understanding it, yielding
to its power and working with it without
questioning it or attempting to change it, he
can remain in perfect control of his use of
it and allow it to provide all of life’s neces-
sities.
It’s only when the good captain would
deign to challenge the power of Nature that
it would turn against him and fail to assist
him in his bidding, even to the point of kill-
ing him.
As they say: “A red sky at morning
means, ‘Sailor take warning.’ A red sky
at night is a ‘Sailor’s delight.’” — and
the ones wearing blue-blocker sun shades
won’t alter any of it.
When we mortals insist on trying to con-
trol and direct Natural Law (i.e., deciding
how soon, how much, what color, what
size, etc.), the voids we create can only be
re-filled with whatever may be
at hand at that moment.
In our toothpaste analogy
above, it’s only positioning and
applying the proper negative
pressure that fulfills our desire
to undo our mistake. Anything
else can only result in the vac-
uum being filled with plain old
air. That’s the Law!
The Universe can only hear
our pleas when we need some-
thing… never when we simply
want or desire the otherwise
seemingly impossible. What-
ever we might be asking for,
when we ask for a “red one with
a white stripe down its side”
and the only one available is a
red one with a gold stripe, the
Universe merely replies: “Sor-
ry pal, but your request cannot
be fulfilled at this time.”
It doesn’t tell us (because it
can’t and couldn’t care less)
why. It just fails to yield what
we didn’t think clearly enough
about before we asked…it
doesn’t offer substitutes.
On the other hand, if we are
too non-specific in our com-
mands, we may indeed end up
with more of what we asked
for than we bargained for or
can properly steward, leading
to excess allowing us to give as
much of it away as possible…
thereby creating another void
to be filled with something else
of even greater value.
“Why is that?” one might
ask. Well (as your father would
say, when you were 7), that’s
just the way it works! Under-
stand it and use it! It’s here
for you every single second of
every single day of your life.
Idle prayers, wishes, hopes,
day dreams and even prayers
don’t do a thing until they are
converted to necessity…and
doing so is often the most dif-
ficult part.
Persuading ourselves that
what we need and honestly
deserve is our birth right, is
often beyond our capability
due to our having been incul-
cated from birth that if it’s not
on the table…don’t ask for it.
Realty411Guide.com
The fact is, however, that if it’s
not on the table and you know
with certainty that it’s in the
cupboard or in the refrigerator
just a few steps away, and you
need it… you have to reach for
it… it will not come to you un-
til you do!
It all sounds too simple I
know, but the secret to unlock-
ing the process and making it
work for you is merely — 1)
identifying a deficiency in your
life that you know with cer-
tainty must be eradicated (i.e.
lack of wealth, prestige, pow-
er, position, love, self-esteem,
etc.); then 2) simultaneously
relinquishing a corresponding
self-serving desire that is rely-
ing on that very deficiency for
its own existence and fulfill-
ment…letting it go! For exam-
ple, if one’s deficiency is the
ill health and social impact of
obesity, then the obvious self-
serving need is overeating…
once that self-serving need is
relinquished the deficiency no
longer has nourishment and it
dies (i.e., the weight is lost).
Other examples of some
debilitating self-serving needs
might be: sleeping-in too of-
ten; not getting enough sleep,
watching too much TV; not
reading; not keeping up with
the news; procrastination; not
studying; complaining and
whining; blaming others for
your own inadequacies; del-
egating your primary obliga-
tions to others; smoking; over
indulgence in tobacco, nico-
tine, alcohol, pharmaceuticals,
etc... (i.e., consider the guy
who complains about never
winning the lottery, who has
a moral need to abstain from
gambling…then the guy who
complains about his poverty,
but who can’t resist heading for
the casinos every weekend).
All-in-all, the fact is that one
must always plan in advance
for what has to be done, and
where the abundance will be
housed when in manifests…
and know with certainty that
it will.
PAGE 45 • 2011 reWEALTHmag.com
 Everyone Can Become An Entrepreneur, pg. 7

accepts his past mistakes posi- one can shake it from his words
tively and continues with his or it cannot be affected by the
present and future in the right past experiences of the person.
direction so that his past shad- Having a positive approach for
ows do not affect his dreams of the future and thinking opti-
the future. Moreover accepting mistically is the right way for
the reality of the present situa- achieving your dreams and it
tion of what you are, what you opens up more opportunities for
have, what you do not have, you. Thus, it is now very clear
what you enjoy and what you that our past, present and future
cannot enjoy. are all very interlinked and can
Gorilla Marketing Group Thinking about your duties
and responsibilities and for the
be controlled in the manner we
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SAM GREEN Photography Los Angeles Real Estate Investors Club

Personal Photographic Artist
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LAREIC Since May 2003, we’ve helped
thousands of investors learn,
network and prosper. LAREIC,
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photo by Sam Green

also known as Sam’s RE Club,

“Take Care, Keep Smiling” is dedicated to providing you
Hi, I’m Sam Sadat, founder and with the most up-to-date infor-
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on the 4th Wednesday of each advantage of this historic opportunity. Join us to hear
month at the Beverly Hills Country
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time to buy real estate than the There’s nothing like it anywhere in Los Angeles!
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call us to Realize your dreams & goals!
Cash Flow with Vacation Rentals
By Hector Padilla, Entrepreneur, Broker & Investor
W
ould you like
to know, how It’s T
I bought a
multi-million dollar to Th ime
Outsi ink
property with NONE
the B de
of my own money
and how at the
closing of escrow I
received a check for
ox!
$140,000 BIG ONES?
Back in late 2005 a sharp young real
estate entrepreneur by the name of Andy
Story brought me a property located in the
Hollywood Hills.
A few weeks prior, Andy sent the list-
ing agent an LOI (Letter of Intent) and the
listing agent literally laughed and rejected
what she described as “a ridiculously low
offer.”
A valuable lesson I have learned is that
time and circumstances always motivate
sellers. Long story short the unmotivated
seller unexpectedly lost her husband in an
accident and immediately became highly
motivated.
Remember this, “People will never give
away their equity or money BUT they
will trade it for peace of mind”. Lo and
behold the listing agent called Andy and
said her client would accept his offer.
Andy then assigned his contract to me
and I paid him $40,000 at the closing as
his “finder’s fee”. You see why I called
Andy a sharp entrepreneur?
I opened escrow and agreed to pay
$2,000,000. I raised $500,000 in cash
from a private investor and took out a 1st
Mortgage. I kept $140,000 from the trans-
action and used it to pay for some
of the remodel. Once the
rehab was done the property
looked gorgeous and appraised
for $4,000,0000.
At that point I put the prop-
erty on the market for a few
months but when I could not get
my price I decided to keep it and
move into it. I was living like a
Rock Star in the World Famous Hol-
lywood Hills. What a glamorous life!!!
Then the reces-
sion hit and my
real estate business
was affected. But
I simply could not
part from my sexy
home. I recalled the
old saying, “... it’s
not what happens
to you, but what
you do with what
happens and how you react to it...”.
I have always told my students “Cre-
ate More Opportunity Than You Find”.
So instead of selling my Sexy Rock Star
home I decided to convert it to a “Hotel
Alternative for The Affluent” and make
it a “Money Making Machine. I decided
to offer affluent people my property as an
alternative to staying in a boring hotel.
One night I simply sat down and wrote a
mini business plan. Remember there are 3 necessities in life.
1. Hire a professional photographer
2. Hire sexy models to portray the Glam-
orous Hollywood Hills life.
3. Build an elegant website
4. Create value by offering VIP Services
5. Hire a professional to Market the
Property
6. Complete all tasks within 21 days
7. Take bookings and EARN some Honey
Money
At www.PresidentialResidence.com I
offer my VIP Clients everything from a
chauffeured Rolls Royce, Armed Body
Guards, Candle Light Dinner, Executive
Services, Daily Housekeeping, Breakfast
in Bed and anything else our clients desire.
Our client’s pay $1,749 to $2,499 per
night. We have even had guests pay up to
$4,000 per night for special events. I have
had the opportunity to meet some amazing
people.
This year we have been booked with
back to back clients. At times we have
clients check out at 12:00 and new clients
checking in at 3pm. Since this has been
such a great experience I now own a
$1,200,000 Ocean Front Luxury Condo in
Cabo San Lucas, Mexico and a 3 bedroom
home with pool in Palm Desert and my
Hollywood Hills Baby = www.Presiden-
tialResidence.com.
These 3 vacation prop-
erties offer some great
benefits:
1. Cash Flow
2. Tax write offs
3. Networking Opportuni-
ties
4. I trade my properties
with other vacation home
owners at NO COST. I
can trade time in one of my properties
with someone who owns a property in
Hawaii or Europe, etc.
5. Build equity via real estate appreciation
6. Meet affluent people
7. Own a business that requires very little
time and management.
8. Build a business that I can sell in the
future.
9. Have FUN
#1. Food. #2. Water. #3. Shelter (i.e. real
estate). People will always need a place to
live, play and work (AKA real estate).
This is why real estate has always been
the #1 Investment. But you do need to
know how to buy right and invest wisely.
Hector Padilla is the President of HP
Capital Investments, Inc. (a real estate
acquisition firm) and the Principal Broker
of SWI Realty (a boutique real estate
company). Because of his limited time Mr.
Padilla only consults via “1-on-1 Coach-
ing Phone Sessions”. To be placed on his
waiting list, please call his office at (310)
204-8971 or email Hector@Hpcinvest-
ments.com
 r
Look foeal
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Estate 11
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Phoenix Expo &

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Tour Dates are

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Expo Hosts & Tour Guides March 19 & 20

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