Real Estate WEALTH is a new publication reaching Accredited Investors, Entrepreneurs, Commercial Real Estate Brokers, Le...
t A h e S P p e u b c i a l i s h l e r E d s i t i o f o n R f e a r o l t m
Wealth
y 4 1 1
Vol. 1 • No. 1 • 2010
Serving the Needs of Accredited Investors - INSIDE: - INSIDE: Information to Grow and Maintain Your Wealth
16
Words of Wisdom from Masters of Real Estate
19
Maverick Investor Group Reveals the Next BIG Thing
35
Bruce Norris Prepares for Annual “I Survived Real Estate” Charity
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7 Secrets from the Master!
“I Survived Real Estate 2010”
Dave Lindahl shares his latest
Charity Walk and Gala
tips for Investing Success
37 Join the Ultimate Bus Tour
9 No Drama in Dayton
with MemphisInvest.com MemphisInvest.com
Triple Net Houses Helps
39 Creative Financing Options
Investors Prot without Issues
with MMG Capital, LLC
11 California Living with
40 Philbin Capital Discovers
Tennessee Cash Flow
Deals in the Golden State
Mathew Owens, CPA, owner of
42 The Key to Success by Club
OCG Properties, explains why he loves to invest out of state 14 Beware of the Investment
Vampires by RBS Homes 16 Dolf & Carter: A Master-
mind with Arizona Investors 19 Enjoy a Tropical Paradise
with Phenomenal Returns
photo: Sam Green
Founder Sam Sadat 45 Buy Bigger and Better Deals
by Kathy Fettke 46 Alternative Economics™
Club Debuts in California 51 Stop the Gambling!
In search of their latest gem in
Mike Woo, a “ Rich Dad, Poor
Nicaragua, Maverick Investor Dad” protégé, advises clients Group traveled the world
52 Is Your Mortgage Underwa -
22 Investor Nation Shares their
ter? Perhaps a Short Pay Re-
Blue-Chip Real Estate Strategy
nance is the Answer
25 Ginger Ma-
cia’s Three
FREE
Ways to nd a Great Wholesale Deal 27 Creative Real Estate
Techniques with Educator Bill Gatten 28 Matt Malouf’s 10
Weeks to Massive, Passive
55 Pay Off Your Rental House
Cash Flow
in Five Years with the Short
30 A Visit with Sensei at his 12
Term Term Retirement Program
Rounds Club
57 Who’s On Your Team?
35 Bruce Norris discusses the
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Investors & Industry Leaders Share
an Evening of Glamour & Giving The 3rd Annual Annual “I Survived Real Estate 2010” will Raise Money for Breast Cancer Research & Unite the Nation’s VIPs to Discuss Investing for investor rights. For the past two years, he has united real estate giants to discuss oes “Shadow Inventory” really ex- the issues that matter, and most important ist? What is the state of the REO ly, to exchange ideas that can help investors market? These are just some of do what they do best: rebuild communities the crucial questions to be and rejuvenate econo Bruce Norris with his wife & son. tackled by real estate inmies. dustry experts on the eve“The panel we’re ning of September 17. putting together can The Norris Group, speak about these issues headed by Bruce Norris, from several differa 30-year veteran known ent point of views and among investors as the hopefully provide us “Nostradamus” of Caliwith some new fornia real estate, is once insights movagain organizing their an ing forward,” nualphilanthropic event in Norris explains. Orange County. Some returning This black-tie affair guests, include: is one of the most fashJoseph Magdzionable tickets in town, iarz, 2011 presi mixing charity, important dent for the Aptrend updates, education, praisal Institute; entertainment and industry networking. It Tommy Williams, 2008 president of is always a sold-out gala, one that attracts the National Auctioneers Association; and the Who’s Who of real estate. Christopher Thornberg, principal of Bea When we attended last year, it was fasci - con Economics. nating to note that besides all the tuxedos, New guests are also being added. “We satin dresses and crème brulées on ne chi- are very excited to have Sean O’Toole na, some serious industry trends and alter - from Foreclosure Radar joining the panel native solutions were pre this year to add his Guests at the last year’s event. sented in just a few hours. data-driven and inIt was an evening of eduvestor-minded percation with a sophisticated, spective.” entertaining entertaining twist, much like For Norris, the “I the man behind the event. Survived Real Es“The theme for ‘I Surtate” series is pervived Real Estate 2010’ sonal. This night is a will again focus on trends, way of honoring his solutions and have an added wife, his family, his focus on the state of REOs,” Norris says. community and profession. “With constantly changing government In the last two years, the fundraiser has regulations, it’s been difcult for anyone in raised over $100,000 for the Susan G. the real estate business to build a sustain- Komen Foundation; these funds are used able business model.” for breast cancer research. Norris, a 30-year veteran investor (from “My wife, Marsha, was diagnosed with rehabber to private lender) is a champion breast cancer more than 15 years ago. This by Lori Peebles
D
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event honors her courageous effort to ght this disease and hopefully adds to the likelihood of someday nding a cure.” In addition to raising breast cancer awareness and funds for research, as well as providing investors of all levels access to information, “I Survived Real Estate” has been instrumental in spotlighting the crucial role investors have in our nation’s economic infrastructure. infrastructure. Norris explains: “This event gives a chance for investors to be seen in a different light. We all know investors are often seen as the “sharks” Tommy Williams of the real estate i n d u s t r y . We take this night to show other sectors that we, as investors, play a signicant role in the solution side of the market.” Norris knows rsthand that real estate investors take great risks in a volatile marketplace. “With greater acceptance, their ideas have a better chance at being heard and being implemented,” he says. The charity event was designed to give everyone, regardless of personal income, an opportunity to participate. participate. “By joining our walk team and raising the money in their networks, attendees and sponsors can technically come free of charge,” Norris explains. Sponsorship opportunities are also available. Benets for advertisers include inclusion in all mailers to local, state and national government ofcials, SEO op timized website advertising, inclusion in mailers and yers, plus event program and screen exposure. Each sponsor is also mentioned in video and radio segments that air before and after the event. For more information, please visit online: www.ISurvived2010.com reWEALTHmag.com
ALL AL L ABOAR ABOARD! D! for The Ultimate Cash Flow Buying Tour The Clothier family, from left to ri ght: Chris, Brett, Kent and Kent Sr.
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ainstream reporters who present real estate as doom and gloom surely haven’t been to Mem phis. The city, known as the birthplace of rock ’n’ roll and the blues, is bustling with industry activity — and visitors aren’t just touring Graceland and Beale Street, they’re leaving as bona de landlords. Our editorial team was invited to attend The Ultimate Cash Flowing Buying Tour by MemphisInvest.com, MemphisInvest.com, a boutique, Mem phis-based brokerage catering to out-ofstate investors. The company, which serves more than 200 clients and manages more than 650 in vestment properties for them, joined forces with the San Diego-based FortuneBuild ers, Inc., (owned by Than Merrill and the “Flip This House” team) and together they organize one of the largest property buying events in the nation. “You’ll never see anything quite like this,” promised Kent Clothier Sr. during our telephone conversation conversation a few months ago. Kent Sr. is found er of MemphisInvest.com. MemphisInvest.com. He takes the helm of the 18-teammember operation, which is managed by his three sons, Kent, Chris and Brett. In my six years as an out-of-state investor, I had never nev er attended a property buy ing tour. Plus, I repeatedly heard about the benets of the Memphis market from many sources. I thought, ‘What a perfect time to put on my reporter ’s cap and go get the scoop.’ The Ultimate Cash Flow Fl ow Buying Tour def initely stood up to its name. Just being in a room lled with investors from around the nation was electrifying. On the rst day, the event was held at a ballroom in the Hilton Hotel, a circular 27-story glass beauty with Realty411Guide.com
MemphisInvest.com MemphisInvest.com & FortuneBuilders Unite Investors from 18 States & 2 Countries
and Sell 29 Rental Homes in 2 Days! by Linda Pliagas
outstanding views and plump pillows. In vestors traveled from 18 states to attend, one couple arrived from Canada. Most of the attendees were investors wanting to learn how to become MemphisInvest.com clients. Many were referrals from their existing client base, and some were repeat customers. “Our average client buys four homes and refers us to all of their friends and family,” says Chris Clothier, director of sales and marketing. MemphisInvest.com pro vides clients with an option of either buy ing a turn-key rental home or one that needs rehab. The company oversees the work for the investors. Each property has a separate quote for the renovation included in its proforma prole. If the rehab goes over bud get, it comes out of the company’s pocket. MemphisInvest.com caters to investors who are looking to buy in typical middleclass areas. The company says they stay away from crime-ridden pockets of the city, regardless of how the numbers may appear on paper. “We only offer houses in the same areas PAGE 37 • 2010
where we have our own personal invest ments,” Chris says. The Clothiers person ally own more than 100 rental homes in a handful of quality, long-term buy-and-hold areas of Memphis. Typical home prices range from $34,000 to $85,000, rents average out be $850 per month. The city boasts high rents and low prices. But surprisingly, 48% of Memphis residents rent. The Clothier family, who were formerly in the grocery business, moved to Tennes see because they saw such an opportunity for long-term real estate investing and monthly cash ow. At the time, Kent Sr., Kent and Chris were scattered about, working in different real estate markets (Texas, Colorado and Florida). Memphis real estate brought the family together. It’s an additional perk for proud papa Clothier. “I’m the luckiest man in the world to have my sons working next to me,” Kent Sr. told the crowd that day. On the rst day of the tour, the investors gathered to get educated on the local market, meet the Clothier family, and mingle with JD Esajian from FortuneBuilders. (The “Flip This House” team owns numer ous rentals in the area.) Continued on pg. 58 reWEALTHmag.com
Seeking Financing for Your Your Next Next Deal? This California-based private lending company offers creative fnancing solutions in all 50 states
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MG Capital, LLC, an asset-based lending company, believes successful investors need to have skin in the game. For that reason, they still invest company funds alongside those of their investors who supply the private money used in their operation. Both company and client assets have grown signicantly since their formation in 2007. In fact, the compa company’s principals have been responsible for the management of assets valued at more than $6 billion. Although MMG Capital is only three years old, the principals have over 50 years of combined industry experience; their expertise includes banking, private equity transactions, development, secured lending, land acquisitions and sales. From an investor’s point of view, one of the most impressive features of the com pany is that they lend on a national scale — most “hard money” rms keep close to home and rarely venture off into faraway markets. “We’ll go to all 50 states,” says Chris Gleason, managing director of MMG Capi tal, LLC. He explains further, further, “There are a number of markets across the country where we’ve found the types of deals that we look for, and they tend to be in higher value areas with greater demand.” Currently, the states where MMG is the most active are California, Florida, New York and Tennessee. The rm’s success stems from their rig orous lending practices, Gleason admits that only one deal out of 75 makes sense for them to lend on. However, since they are an asset-based lender most investors have an easier time qualifying for an MMG loan
Interview and article by Lori Peebles We’re looking for current value as opposed to future value. Loans Loans that need to be based on an ARV or higher appraisal value won’t typically work for an asset-based lender. However, we do have clients who are rehabbers who own other free-and-clear property, they then secure a line of credit with us for the purpose of purchase and rehabbing more property.
compared to a bank. With MMG Capital, no income verication is needed nor is credit score or seaChris Gleason soning taken much into consideration. consideration. The allure of their program Recently, our editorial team spent time is that underwriting guidelines are not reviewing some of the company’s pro - based on the borrower’s credit, income or grams, which include private lending, trust seasoning, which truly opens up the play deed investing and unique investing vehi- ing eld for many more investors. In real cles, which offer short-term liquidity and estate transactions, time is truly of the es -
MMG Capital Funds Creative Investors Across the Country
Realty411Guide.com
safety backed by real estate. sence, and Gleason explains how their proWe then asked Gleason to give us and gram can help investors move condently our readers a better understanding of how on offers and close quickly on deals. their services can help leverage the assets of their clients so they can grow their We take a very common sense approach wealth more quickly. to lending. Asset-based lending has been First, Gleason gives us a glimpse as to around for decades, but it was largely who their typical “hard money” lending abandoned by most rms during the boom client might be and shares some of the cri- years because anybody who could fog a teria they look for when funding deals. mirror could get credit. Now we’ve arrived back to an old school standard where We see a very wide range of real propwe’re lending realistic amounts against erty investors who are looking for capital, realistic values and realistically taking all the way from the most sophisticated into account the kind of trouble that our investor down to the beginner beginner.. The inves- marketplace is in. It’s really a plus and a tor who makes the best candidate for an minus for investors – only those who have MMG Capital Loan is the investor with solid assets are able to obtain nancing at least moderate real estate investing ex- and “nothing down” scenarios don’t ex perience and a substantial balance sheet. ist anymore. But, for those who have the MMG Capital is an asset-based lender, so net worth to support an asset-based loan, we’re really looking for two things: hard there’s there’s very little competition for them and equity and net worth. We can be a great they can align themselves with a private nancing partner for a real estate invesinves- lender like us who will provide them quick tor who is doing signicant business and capital based on their current equity. already has some substance to their balContinued on pg. 61 ance sheet. PAGE 39 • 2010
reWEALTHmag.com
Veteran Syndicator Discovers Golden Opportunities in California by Lori Peebles
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oodson “Chip” Philbin began his career as a securities broker, but he soon left Wall Street to sell “tangible” investments. Fast forward 23 years later, the Sacramento-based lender and mortgage broker now has a successful career as a real estate syndicator. Many professionals are lured into the real estate industry with a hope of one day purchasing the very object they sell. At rst, Philbin, CEO of Philbin Capital, wasn’t focused on his own portfolio as much as those of his clients. He was initially attracted to the business as a commercial real estate lender and mortgage broker because it made nancial sense in contrast to the high volatility of the securities market. “At one of my previous employers, the management started a real estate investment trust, got it listed on the American Stock Exchange, and raised about $100,000,000 to do mortgage mortgage loans. They went through through the hundred million in about ve years,“ he recalls. “Here I learned that one of the main objectives of those that manage REITS is to generate management fees and not necessarily safeguard their investors’ money.” That experience, along with his experi ence as a stock broker and other stories similar to ENRON, made Philbin wary of paper assets. He explains: “Stocks have limited true inherent asset value contrary to real estate, which is tangible.” Philbin, who was busy arranging funding for multimillion dollar deals his investors were securing, did not stay on the sidelines for long. “I formed a partnership with ten people I knew, and we made a hard money loan to a small grocery store north of Sacramento,” Chip says. He adds, “We loaned the owner/operator about $1,000,000 at 11% for two years. I had $100,000 in this deal and my investors provided the rest.” One of the benets of working in real estate is the networking opportunities that Realty411Guide.com
come about in everyday affairs. Routine business connections can turn into friendships, which can then evolve into joint ven tures. That was exactly the case for Philbin. His career as a commercial mortgage broker opened the way for joint ventures with his associates and clients. “I was referred to a wellheeled investor by Comerica Bank, who owned a high tech company in Santa Clara and needed to renance his plant. I ar Chip Philbin ranged the loan and didn’t hear from him for about four years,” he recalls. But then one day, opportunity knocked. “He called me in to discuss another re nance, this time a cash-out renance. We did some analysis on how much he should borrow and I arranged another loan for him. At that point we decided to become partners and to purchase cash-owing commercial and multifamily property.” The new partners joined forces and funds, which led to the purchase of a 72unit apartment complex in Chico, Calif., a property they still own today. When questioned about his transition from adviser to partner in his dealings with clients, Philbin replies: “People have a real need for trusted advisers who are experts in their given industry. If you have a high degree of integrity and put your clients and investors ahead of your own interests, then opportunities opportunities will present themselves.” Although rehabbing tends to attract the spotlight in real estate, Philbin shuns those quick-turn deals and prefers to invest with a ve to seven year minimum holding pe riod. Because of his mortgage background, when possible, Philbin prefers to renance the asset after an initial holding period so that investors can retrieve their initial down payment, leaving little or no cash in the deal and magnifying returns. Philbin is partial to owning retail centers, single tenant NNNs, multifamily and industrial properties. PAGE 40 • 2010
His angel investor continued to be involved in projects with Philbin and togeth er they built a solid portfolio. “With him as my partner, I developed three single-tenant NNN leased commercial buildings, all leased with terms of 15 to 20 years, in which I placed xed-rate permanent nancing right after completion and occupancy by the tenants.” Long-term buys may be his strategy of choice, but make no mistake, cash ow to day is the goal when Philbin and his inves tors acquire a property. His success record is impressive. “The cash ow from this small portfolio is nearly $400,000 annually, plus I was able to nance out almost all of our entire cash investment, so we have very little cash left in these deals.” The massive passive cash ow has been a blessing, but Philbin admits it made him a bit complacent. For the past several years he’s been working primarily on his handi cap at the Northridge Golf Club in Fair Oaks instead of pounding the pavement to procure new investors. But now that his primary angel investor is retiring, Philbin is actively recruiting new investor partners who are interested in commercial investment opportunities in the Northern and Central California marketplace. The company prides itself in investing funds into every deal alongside the partner. He believes in full disclosure, low manage ment overhead, and welcomes partners who are relationship-oriented and are seeking long-term, tax-sheltered passive income. While prots and returns are what inves tors strive for, Philbin stresses that build ing long-term business relationships is the most gratifying aspect of the real estate business. “I really enjoy people and enjoy the real estate business,” says the 29-year industry veteran.
For questions regarding commercial real estate, contact Chip at (916)961-6832 or visit: www.PhilbinCapital.com reWEALTHmag.com
Real Estate Investments/Partnerships Investments/Partnerships
“[Chip] is unique in that he has true professional understanding of all key He has been very open in his communications and honest to a fault in
Gerald McIntyre - Partner
Visit our website at www.philbincapital.com
Realty411Guide.com
Chip Philbin 916-961-6832
[email protected]
PAGE 41 • 2010
reWEALTHmag.com
by Sam Sadat, founder of Los Angeles Real Estate Investors Club
A
re you a creative person? When for a few more years, was the last time you came up but to benet from it requires with a creative idea? But why maximally be creative? Why challenge the rules and new knowledge and perhaps even appear stupid to others? Be- applications. Remem cause creativity is the stuff of life. That is a ber how our lives have changed since the 9/11? big reason, but there are other more reasons to consider. Another reason is change. We Well, the business rules all know the only constant in life is change, of engagement have albeit we tend to resist resist change. (In fact, the also changed drastionly person I know who likes “change” is cally. Real estate has taken the biggest blow, a wet baby.) When things change, new information and as usual, our gov emerges, which leads to a brand new set of ernment’s answer to every problem is more contrast, I advocate educa educa problems. It’s proven time and time again regulation. In contrast, that it’s no longer possible to solve today’s today’s tion over regulation. But you can’t nd problems with yesterday’s answers. So you that kind of knowledge in any accessible have a decision to make: You can either or even comprehensible fashion in our bucomplain about how difcult things have reaucratic system. To obtain this kind of knowledge required become or employ your creative juices to come up with new ideas, new solutions, for prosperity, you need to attend and net work in real estate meetings and seminars. Venues such as our real estate club, Los Ange les Real Estate Investors Club (LAREIC), will provide you with the new knowledge on how the game is being played now. Once you know what’s what’s working in today’s market, you’d be able to further develop your creand new paradigms. This economic turndown has vastly inu - ativity and capitalize on it more effectively. enced our lives in recent years. years. It has forced Without this new information, you’re lim us to stop and and examine our our lives. Socrates ited to old solutions, which are ineffectual fast-changing world. once said “an unexamined life is not worth in our fast-changing I believe there are ways to enhance your living.” So, I think this recession recession may ulti ulti mately prove to be a good thing because we creative powers. Here are a couple of sug are learning valuable valuable lessons. lessons. What would gestions from two highly successful peo make it even better is if we further examine ple. Steven Jobs was asked why some people our spending habits and reasons why we creative than others. others. He replied, tend to live live beyond our means. This kind are more creative of introspection is needed if we are to attain “Innovation is usually the result of connancial freedom ourselves and to save our nections of past experience, but if you great country from becoming another great have the same experiences as everybody else, you’re unlikely to look in a different civilization civilization that was. example, in college, Jobs Jobs To affect positive change we needed an direction.” For example, impetus and we got one, the Subprime took modern dance classes to meet women. Meltdown, the biggest economic downturn What he didn’t realize was how much he since the Great Depression (or as I call it, learned about movement and perception the 9/11 of the business world). It is here in those classes, which came handy years
Socrates once said: “An unexamined life is not worth living.”
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PAGE 42 • 2010
later when he worked for the Atari Corporation. Thanks to his modern dance classes, he was able to calculate how much resolution of movement was needed in their video games. The real estate entrepreneur Frank Morrow explains that he got his entrepreneurial education while attending the graduate school of business at Stanford. Although he took all the required courses in marketing, nance and accounting, he said. “I learned more about business from a drawing course than anything else. My teacher taught us: ‘All art is a series of recoveries from the rst line. The hardest thing thing to do is to put down the rst line. But you must.’ The same is true in business. You must act. A lot of business school-types analyze things to death and never get around to acting. Perhaps more of them should take drawing lessons.” I believe your mindset is more important than nuts and bolts. We have plenty of real estate knowledge at our monthly meetings and seminars to arm you with helpful tools to succeed in this market. market. But I challenge challenge your beliefs beliefs relative relative to success. Remem ber that unless you break with the old, you won’t let in the new. In other words, Light (education, abundance and love) won’t come into your life until you show the courage to literally kick out Darkness (ignorance, scarcity and fear.) So expand your horizons, step outside of what’s considered normal, break the boundaries of what seems reasonable, and act upon your knowledge. There’s never been a more important time in our country’s history (or the world for that matter), than the present. present. What we do today will will af fect humanity and shape our future destiny. So, let’s make it a good one. Kindest regards, Sam Sadat —
[email protected] [email protected] Be sure to visit online: www.LAREIC.org reWEALTHmag.com
LARGE EQUITY AND POSITIVE CA $H FLOW
DPW helps investors create wealth through Real Estate Investments. We We will show you how to become a successful investor. We take away all the guess work because real estate investing should be effortless. We We will do everything we can to make sure our investors are taken care of and are educated on the entire process. Our goal is to make real estate investment easy for the average investor through our various investment programs.
How to Get the
Bigger Better by Kathy Fettke
T
rying to get a good deal in today’s market can be frustrating. It might mean making a hundred offers before you get the one that makes sense. And even if you have cash and will close “as is,” you still might lose out. Or you might end up with the property and nd out later you paid too much or got stuck with a lemon. So how are the experienced investors getting deals with less effort? At Real Wealth Network, we have found the power of numbers. Our teams buy in bulk directly from the bank. The banks love this because they can move more property at once, even if it means slash ing prices. In most cases, the properties never make it to the open market before we’ve hand-picked our favorites. It’s tough for an individual to com pete with a bulk purchase. We also pool funds to pick up almost-complete subdivisions or multi-family properties. Again, this is tough for the
Deal individual investor because the price tags are much higher, but the deals are sweeter. For example, we just wrote down a $12.9 million FDIC loan to $3 million on 27 almost-nished water-front con dos in Portland. Investors will make over 40% in one year. This is truly the greatest wealth transfer in history. Op portunities abound, and to gether we can make it happen. Mistakes happen when inexpe rienced people jump into something they don’t understand. That’s why so much wealth has been lost over the past decade. You don’t have to go it alone, learn from the experts. Real Wealth Network brings new and experienced investors together to share information and learn from each other. Our site has articles, videos, blogs, podcasts and downloads to help educate our members to make smart investing decisions during this once-in-a-lifetime opportunity. For information, visit: www.RealWealthNetwork.com
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that owns a 112-unit apartment complex in Florida. Ritchie wholeheartedly believes in the importance of diversication diversication and says others feel the same way. “This breadth of investment strategies attracts a much larger segment of my community,” he says. “Being built around Alternative Economics™, I am providing applicable economic alternatives to help mem bers develop their own personal system of nancial growth.”
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alifornia is one of the most active states for investors. Even during this current economic downturn, the state is still a powerful economy in the global market. To meet the demand for investor education, a new investment club system was recently launched in California by Roger
Ritchie, a Los Angeles-based real estate investor and frequent club-circuit guest. The Cerritos Investor Education Club, founded by Ritchie, however, goes way beyond the typical real estate club. The nancial education training is based on Alternative Economics™, a personal system of nancial growth education. It is designed to reveal hidden assets and apply them to alternative investment strategies using personal money rules that engage four asset-acceleration principles, through three nancial growth stages. Ritchie, who has regularly attended real estate clubs for years, chose to align him self with the National Strategic Investment Corporation (NSIC). His new club, the Cerritos Investor Education Club (CIEC), is the rst California chapter. Ritchie’s goal is to form a club with diversied investment strategies to provide his mem bers with “alternative investment strate gies, not just real estate,” he says. Ritchie has spent a lot of time and resources in developing his investment game plan. He is a David Lindahl graduate and also learns through the Joel Block’s syndication system. It is at Block’s event where he met NSIC founder, founder, Steve Het tema. Ritchie is also a member of All Cities Network, a collection of networking groups. Currently, Ritchie is managing partner of an investment syndication group PAGE 46 • 2010
Through monthly meetings, Ritchie says CIEC will provide educational products to educate investors about a broad range of investment vehicles, both locally and nationally. CIEC is now part of what makes up a growing investor community known as the National Strategic Investor Group (NSIG), whose clubs are based on the NSIC club model. The NSIC is a company teaching investment and economic alternatives. In addition to its readily applicable nancial education, NSIC provides resources, products, services and oppor tunities through local and virtual investor clubs. Ritchie is excited about CIEC’s launch and he credits Hettema’s ofce with providing him with the tools needed for an association to succeed. “ Not only does NSIC provide me with all the resources to start and manage my club, but the NSIC model shows me exactly how to successfully establish my club step by step.” To learn more about NSIC, visit online www.ciec.nsicgroup.com www.ciec.nsicgroup.com and download the free Alternative Economics™ e-book. For information about CIEC, contact: Roger Ritchie, Club Leader of the Cerritos Investor Education Club, (714) 793-3167,
[email protected] reWEALTHmag.com
Triple Net Houses, pg. 9
They pay no expenses. If they nance the house for example at 5.5% or 6%, you’re going to get that spread using the bank’s money. If you buy a house for $60,000 and you put down 20%, $12,000 on the $48,000 you’re borrowing, you’re going to make 3.5% but that’s not us ing any of your money. You’re not making 3.5%; you’re mak ing an innite return. It’s the bank’s money. Now you’re going to get 9.1% on the balance,
News about Julian’s NNN model has spread quickly largely through referrals and online connections. “We have a blog, we do webinars, we do confer ences just like your magazine.” Now that Julian has established his NNN presence in the investment market, his new goal is to expand conservatively. He explains: “We want to grow scally responsibly. This year we’d like to do about 120 houses, about 10 a month.
“This year we’d like to do about 120 houses, about 10 a month.” for a total return of 17%.” We’re not quite at that target Obviously, a lot of planning but we’re real close. It’s growwent into Julian’s investing ing in the right direction. Next modes. His personal experi - year we’d like to do 150 to 160 ence as an investor started in houses.” 1975, and he’s been a real esAs they continue to grow tate broker since 1979. Born in and prosper, Julian expressed New York City, he moved to his thoughts about expandDayton with his parents while ing to other locations or cities. he was in high school. He later “In another year or so we plan attended Wright State Univer- to move to Cincinnati, which sity. Julian has been married would be the logical city. It is for 36 years. His wife is a re - about 50 miles south of us with tired public librarian who still similar demographics.” demographics.” substitutes when needed. needed. They In real estate investing, slow have one son, Paul, who is 26 and steady wins the race, and and is trained as a chemical en- Triple Net Houses would win gineer. the Innovative Risk Reduction “But guess what?” Julian Award if they were to establish asks, and proudly replies: “He’s one in our industry. working for us now as an operation’s manager. It’s a family For more information, please affair.” visit ww.TripleNetHouses.com
Realty411Guide.com
PAGE 47 • 2010
reWEALTHmag.com
,
,
M
any Investors gamble their nancial future and retirement dreams on capital appreciation. Michael Woo, chairman of Longn Investment Solutions, thinks that is unwise. “It’s time to get paid month ly instead of gambling on a 20-year pay out,” he says. As chairman of Longn Investment Solu tions (LFI), Woo created a turn-key invest -
Investments. to invest, Woo says he bases his compa - the CEO of ER Real Estate Investments. Reynolds purchased her rst rental at age ny’s approach on solid, factual data. “Our team constantly seeks out markets that 24 for $10,000 cash. Since then, she has can weather the storm based on strong job been involved in numerous transactions growth and economic or population expan - and she is also currently an out-of-state investor. Reynolds enjoys assisting others in sion.” Woo began his career as a real estate also maximizing their potential through the investor in 1995. Before eBay was ever in purchase of passive income real estate. “My core belief is that real estate creates the picture, Woo sold and marketed collect ible toys as a way to raise capital for his wealth, and wealth is effectively amassed rst investment. In two years, Woo Woo raised through real estate acquisitions,” she says.
Stop The Gambling! Why Bet on Future Appreciaon When You Can CASH FLOW Today? by Lori Peebles
ment system for investors who seek cash $50,000, a down payment for his very rst ow in emerging markets. “Our properties property. Since then, Woo has been inare totally rehabbed, with existing property volved in hundreds of transactions. His skills in management, management, and often Mike Woo with “Rich Dad, Poor Dad” the industry did already have renters in founders, Robert and Kim Kiyosaki not go unnoticed. place,” Woo says. “Our In February, Febr uary, Woo Woo average NOI (Net Op was honored as erating Income) rate of the recipient of return is between 25% Rich Dad eduto 36% ROI (Return cation’s Hall of on Investment) with Fame Award, 10% to 12% cap rates. presented by Why wait for tomor “Rich Dad Poor row when you can cash Dad” author ow today?” Robert Kiyosaki. An avid sherman, Woo was honWoo, who is a native ored for his role of Southern California and graduated from Torrance High School in increasing nancial intelligence. In ad and San Diego State University, named the dition, he was acknowledged for dedicat company Longn to commemorate a sh - ing his time to helping others improve their own lives. erman’s special name for the albacore. “We teach real estate investing funda“Albacores are renowned by sportsmen all over. They are a much sought-after game mentals, including having the right mind sh with attributes of being fast-moving set and goals,” Woo explains. “We want to hunters that operate together to achieve make each investor a better person and extend their investment dreams further than goals,” he explains. Woo’s individualism also positively im- they could have ever imagined.” In addition, Woo says they teach inves pacts his investment philosophy. demographics, locations, For example, while many investment bro - tors to understand demographics, kerages only deal with one specic type cash ow and ROI. Recently, Woo expanded LFI and added of property, such as single-family homes, Woo’s investment strategy is to nd deals a dynamic partner: Erica Reynolds. She has been appointed as vice president and across the entire market spectrum. Instead of letting headlines predict where marketing partner. Additionally, she is also Realty411Guide.com
PAGE 51 • 2010
Both Woo and Reynolds have great national resources accumulated from years of personal relationships, which they pass on to their clients. They also have established relationships with private equity lenders for nancing. “Lending is not a problem for LFI and we do not want nancing to be the reason you do not take action toward investing,” says Woo. LFI also created an afliate marketing partner program, which offers prot shar ing. Erica Reynolds Reynolds explains, “B eing a marketing partner is a great way to join the team and partici pate on many great deals. As a market ing partner, we offer great referral fees, equity partnerships and other benets.” Lately, Woo and Reynolds have been busier than ever attending many network ing events and also hosting their “Stop the Gambling” seminars for the public in Southern and Northern California. LFI is also organizing investment road trips to In dianapolis, one of their target markets.
To learn about the “Stop the Gambling” educational seminars, contact Longfn Investment Solutions at: (949) 388-0678. Visit LFI at: www.longninvestments.com reWEALTHmag.com
Short Pay
Refnance The Solution for Homeowners who have Underwater Mortgages by Shahid Habib and Ketan Naran
Shahid
Ketan
H
omeowners all across the U.S. are feeling stressed out due to a decline in the value of their homes and the fact that they now owe the bank more than their property is worth. However, there is hope through an option known as short pay renance, which is a great solution for them, if they qualify. According to a report published in May 2010 by First American CoreLogic, a real es tate information company based in Santa Ana, Calif., “more than 11.2 million, or 24% of all resi dential properties with mort gages were in negative equity at the end of the rst quarter of 2010.” Out of that number, in California alone, more than 2.4 million homes, or one third of all mortgages, have negative equity. The underwater mortgages and negative equity pose a roadblock to a housing recovery because the underwater mortgages are more likely to fall into default leading to a potential foreclosure by the bank. Most banks have already been taking big losses on foreclosure and short sale properties and are considering other options as well. Short Pay Access, a company based in San Ramon, Calif., is able to help homeowners anywhere in the U.S. through the best short pay renance program available today. The company does not charge any
up-front fees to homeowners. It offers a solution for both banks as well as for the homeowners. The homeowners get to keep their home with a lower princi pal balance and lower monthly mortgage payments more in line with the current value of their home, and the banks get a chance to “clean-up” their balance sheet by getting a property completely off their books. Banks are becoming more willing to accept a short pay renance especially if the bor rower is current on their mort gage but is experiencing some type of short-term nancial difculty or the interest rate on the borrower’s current loan is about to increase. A short pay renance also provides the bank with an infusion of “cash,” which increases their ability to invest in other opportunities or to lend out. Banks are in the “lending” business and not the real estate business. Unlike a loan modication or a short sale, which sometimes requires a borrower to be delin quent on their mortgage payments, the short pay renance program follows standard lend ing guidelines and only works if the borrower has a clean recent mortgage payment history.
1. The mortgage needs to be more than the current market value of the home. 2. Borrowers need to be current on their mortgage – no late payments. 3. The borrower’s credit score must be 620 or better. 4. They must have veriable income. 5. The property must be the borrower’s primary residence. Short Pay Access works with the lender in order to complete the short pay renance and gets the lender to write off a portion of the loan amount. A short pay renance gives homeowners the ability to renance their homes at the fair market value. The process involves paying off the current lenders loan at fair market value and then renancing
their home with a new lender at the current market value. The Short Pay Access team consists of experienced negotiators who have carefully built working relationships with lenders. The negotiating negotiating team is well versed in the lender’s requirements and preferences and uses this experience to help
Do You Feel Trapped by Your Current Mortgage and the Loss of Your Home's Value? Let us help you
'Short Pay Refinance' a new option with
NO Upfront Fees! the homeowner without wast ing any time dealing with un knowns.
(This is not a loan modification or a short sale)
For more information, contact Short Pay Access online at www.ShortPayAccess.com or call (925) 309-6109 for a no obligation free consultation.
It could help you to Keep your home Lower your principal balance Lower your monthly payment Eliminate Negative Equity ket to lawyers who specialize in family law, estate planning and probate. Also, don’t over look paralegals who can be a wonderful source of leads. #3: Your Target Zone: For maximum success, farm your area just as a REALTOR would. Posting signs around your farm area, as well as displaying a clever advertise ment on your vehicle can lead to success. #2: Make Many, Many Offers! An aggressive investor should be making at least 10 offers a day or 200 offers per month. How do you compare? Well, then please don’t complain that you can’t land a deal! Realty411Guide.com
Contact us today to find out if you qualify 925-309-6109 www. Short Pay Access Access .com
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reWEALTHmag.com
by Linda Pliagas & Lori Peebles
STOP!
Before you purchase that shiny, new luxury vehicle — the one that’s going to plum met in value as soon as it’s driven off the lot — think about buying a rental income property instead. That’s right, for about the same price tag as a 2010 Mercedes-Benz M-Class (MSRP: $45,700), an investor can purchase a rental property in Memphis, Tenn, instead. Plus, they can pay it off completely in ve years — the same time as the car. This turbocharged investing structure,
tional roadblocks, such investors annually, he says they can deliver as the number of existing properties at deep discounts. mortgages one has, or a Additionally, since Reedy knows that lack of seasoned funds cash ow and built-in equity at purchase are or less-than-stellar credit primary components of a great investment, scores are simply non- he says they “are willing to leave enough issues with their private prot in the deal for the client to have great nancing program. cash ow and success, which leads to re So what’s the catch? A larger-than-normal turning clients and more business.” downpayment for a residential purchase is To handle the management of his own required (30% to rentals, as well as Craig Jennings and Jim Reedy. t h e b u r g e o n i n g 50%), which is actually a percentage empire of his clithat is common these ents, which now days in commercial number close to real estate transac1,000 properties, tions. The property Reedy relies on his is then paid off in 60 staff of 15, which months (amortized includes four fullin seven years). In time leasing agents the meantime, in and numerous vestors can expect a independent con bit of monthly cash tractors.
Keep the Older Car|Buy a Rental Instead coined the Short Term Retirement pro- ow to help them maintain the property. In 2008, Craig Jennings was recruited gram, is marketed by Jim Reedy, CEO of It’s a bullish investing program offering to handle investor relations. Jennings es Memphis Investment Properties, LLC, a easy terms and, best of all, no restrictions. tablished himself with Reedy as a talented full service real estate investment brokerWhen Reedy found out about the pro- wholesaler, often providing Reedy with age and management company. gram, which was developed by Robert outstanding deals for his clients. Memphis Investment Properties (www. Feol, a local real estate nance expert, he Shortly after, the team was joined by Curt memphisinvestmentproperties.net), found - knew he wanted his company to have ex- Davis, who is now a leading sales execued in 1985 by Reedy and his wife, Debi, clusivity. Reedy says the program was so tive for the company. Together they eld is an exclusive provider for the Short Term good, he wanted to keep it all to himself. requests and answer questions from in Retirement (STR) program in the Memphis Real estate has been Reedy’s passion and vestors around the nation, and even from metro area. focus for 34 years. He majored around the globe. The team relaxes after a meeting. The most in real estate at the University When asked where the majority of Mem enticing asof Memphis and has been sell- phis Investment Properties’ clients come pect of STR ing homes since his senior from, Reedy quickly replies that most of year. is the speed their investors come from the West Coast, in which an “I fell in love with real estate California in particular. The East Coast also investor can during college,” he admits. brings in a lot of activity. Tennessee is also have their “The sky was the limit.” gaining popularity with investors living rental comReedy says that from per- outside of the United States, as well as with pletely paid sonal experience he knows recent U.S. immigrants. Reedy says lately off, which investing in real estate is more he is seeing “lots of foreign activity.” then maxilucrative than working as a For Reedy and his team, real estate in ® mizes cash REALTOR . His family cur - vesting is not just a business, it’s a lifestyle. flow. Their rently own and manage an In fact, his wife, Debi, is chief operation program also offers tremendous exibility, impressive personal portfolio of more than ofcer, and one of Reedy’s ve children enabling people who normally would not 300 single family rentals. is also a top producer in her market in the be able to qualify for a property a chance Because Reedy and his team are active Continued on pg. 62 to build wealth by owning rentals. Tradi - real estate investors, servicing hundreds of Realty411Guide.com
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reWEALTHmag.com
by Crystal Han of 360 Investments™ Investments™ | edited by Scott Scott C. Seckel
Who’s On Your Team?
T
hese days with the current economic well-earned commission. and credit crisis, it’s not what you •A mortgage professional is essential. They know, it’s it’s who you know. 360 In- can be a direct lender, bank or mortgage vestments™ realizes that investing in real broker. broker. Shop around until you nd one who estate is a team sport. That’s why we have can tackle creative ways to nance a deal. built local power teams in major cities Ask about their loan fees and programs. across the country. country. Having the right indus - It’s critical to nd out about their quali try professionals on your team will make cations, seasoning and percentage-down all the difference in your investing success. requirements. Here is a list of important team members to These professionals can also lead you to private and hard money sources. Always have on board: •Get a mentor, with a proven track record, ask for a Good Faith Estimate (GFE) and who has successfully acquired the type of compare statements. Find out their average time to fund and close a deal since time is real estate investments you want to have. money! •The right title, escrow or closing attorney, depending on the state, is your best friend. Interview several until you nd one that un derstands unconventional ways to transact real estate deals. Ask them if they are familiar with assignments, double or simultaneous closings. You want some one who can draft up notes, deeds of trust or mortgages. Title representatives can also provide you with access to title reports, foreclo sure listings, and farming packages made up of mailing lists and labels for marketing purposes. •You will need several at Your local real estate investment associa- torneys on board, who specialize in differ tion, abbreviated as REIA, may be a good ent areas. Engage an asset protection at place to nd a mentor. Make sure you con- torney who understands entity formation, a transactional attorney who tribute to your mentor if you are not pay- local real estate transactional ing for their time to t each you and take you can review your contracts, and an estate planning attorney to pass your inheritance under their wing. •Find a REALTOR ® who can give you in- on to your heirs without costly and timeconsuming probate proceedings. formation about the local market. ® A REALTOR can provide you with •Real estate investments offer huge tax comparable sales (COMPS), current mar - benets. It is important to get a highly ket values, average days on market (DOM), qualied tax professional, a certied pub appreciation/depreciation rates, and other lic accountant (CPA), or a tax attorney who codes. Choose a pro provaluable information. information. Provide leads to your understands the tax codes. REALTOR ® by sending potential clients fessional who also invests in real estate. their way and make sure they receive their They will know the maximum deductions Realty411Guide.com
PAGE 57 • 2010
available to your type of business. •Get an insurance agent who will issue your policies for the best protective coverage in the state where you own real estate at the best prices. Always compare rates. rates. •A reliable general contractor will give you work estimates and project bids. These quotes are tools with great negotiating power. Request a copy of their license and check with the state board to make sure the contractor is in good standing. Get plenty of references and do not pay in advance. •Locate a certied property inspector who will inspect your properties and provide a detailed inspection report and photographs of their ndings. The report can be used for negotiating the purchase price. It can also be used as a walk-away clause. •Appraisers are priceless in this current market. They provide market market values, com parable sales, and draft up appraisal reports on their ndings. ndings. Please note, with with the new HVCC guidelines, lenders choose their own appraisers when determining value for lending purposes. •Property managers and management com panies are the key to long-term investing success. Make sure to get lots of referenc referenc es from other property owners. owners. Review the property management agreement carefully and make sure you understand everything clearly. Find out the management fee, ad vertising costs, service call fees, average turn-over costs, vacancy rates, eviction rates, total number of units managed, num ber of years in business, term of agreement, monthly statement schedule, online system accessibility, and direct deposit options. Always retain copies of lease agreements with tenants. It’s your job to manage the property manager! •Last, but certainly not least, get an ac countability partner and a local network of investors who will provide you with ongo ing support and updated information on other industry professionals, the markets, and other investment opportunities. opportunities. Building a protable real estate invest ment portfolio takes a strong team, and more importantly, a great team leader who selects the right team members! reWEALTHmag.com
The Ultimate Cash Flow Buying Tour, pg. 37
very rst day of the tour. about $350 monthly. Kent Sr.’s luring promise that I would The elegant banquet room where the never see anything quite like this proved to education took place was lled with many Californians like me, including a young be true. The action that was taken on that couple from Burbank who rented a rec - day was mind-blowing. A total of 29 homes were sold, all sight unseen. I was captivated reational vehicle and drove nearly 2,000 by the volume of deals done as well as the miles to buy a property in Memphis. “We left on the Fourth of strategies they spoke about, such as their July and plan on touring dif- guerilla-marketing leasing system. Here is the creative way they ll vacan ferent cities for two weeks after this,” Declan and Shaun cies: MemphisInvest.com hires multiple Hoare said. The new investors leasing agents on commission to show and purchased a three-bedroom, rent out their client’s property. A total of four signs are placed on the lawn, each with two-bath brick home on the Guests listen to Kent Sr. a different number, each reaching a distinct agent. Competition is created. Each leasing agent is on high alert: If they want to get paid, they have to be the rst to answer the phone and show the property. Another management technique that really stood out is the system they have of calling their clients just to touch base. Once a month, investors receive a status report, even if there is nothing wrong with the property. “If a client has to call us to check on their property, then we are not doing our job,” Chris explained to the audience. Our group saw their four-sign leasing system on the second day of the tour. On CHEDULE that day, we hit the road on two buses and August 24, 2010 saw numerous sample properties. 6:00 to 8:00 pm We saw houses in all states of renovation, Valencia Library from the stinky and messy to the shiny and 23743 West fresh. The rehabbed homes featured hard Valencia Blvd. wood oors, soothing earth-tone colors, Valencia, CA 91355 new tile and new countertops. The quality of their remodel is a testament to Kent Sr.’s August 25, 2010 6:30 to 9:00 pm perfectionism perfectionism and attention to detail. LA Real Estate After attending the tour, it became clear Investors Club that I was in the middle of one of the best Beverly Hills investing markets in the country, and in the Country Club presence of industry leaders. If your goal is 3084 Motor Ave. to purchase a quality rental in a burgeoning Los Angeles, market and have it managed by a proactive CA 90064 and creative team, then be sure to pencil in the next The Ultimate Cash Flow Buying Tour on your calendar.
The Clothiers discussed their own per sonal story of their quest for passive income and presented their research on the market. Then they introduced the members of their team. After a brief networking networking break, break, they passed out a large, white sealed envelope with the information everyone was waiting for: The Deals. Guests were more than eager and ready to buy a cash ow property based on an address, a photograph and numbers. Most rental homes cash owed
A U G U S T S August 4, 2010 6:30 to 8:30 pm Pasadena Library 285 E. Walnut St. Pasadena, CA 91101 August 5, 2010 6:00 to 8:00 pm Torrance Library 3301 Torrance Blvd. Torrance, CA 90503 August 10, 2010 5:30 to 7:30 pm Angela Iacobini Library 4900 Clark Ave. Lakewood, CA 90712
Don’t Miss the Next Tour
* September 24 & 25 * Space is Limited, Reserve Early 1-877-773-9998 or 1-901-751-7191
http://www.MIBuyingTour.com or http://www.MemphisInvest.com Realty411Guide.com
PAGE 58 • 2010
reWEALTHmag.com
A Visit to 12 Rounds, pg. 30
Secrets from Sensei, pg. 30
More recently, an out-of-town owner of a vacant home began to receive citations from the city due to the blighted condition of a property she owned. The woman no longer had a need for the home, which had been broken into and vandalized. Instead of having to pay additional nes or incur a large expense to x the abandoned prop erty, she opted to sell “as-is” to Sensei at a 45% discount, and Sensei ipped the prop erty using a double-close technique to a rehabber. Sensei used no money, no credit and no loans, just pure wholesaling. Yes, a prot (typically larger than most real estate transactions) will be made for wholesaling a property as it should be. An
#4: Attorneys and Paralegals: Be sure to market to lawyers who specialize in family law, estate planning and probate. Also, don’t overlook paralegals who can be a wonderful source of leads.
Wholesaling “does not require cash, credit or a license, which equals NO RISK.”
#1: Piggyback Your Deals: Don’t be afraid to partner up and share your deals with other wholesalers. wholesalers. The more wholesalers in your database, the easier it is to share buyers and sellers. Don’t be greedy and dishonest. Remember: Your reputation is more important than money. Once tarnished, it seldom can be restored.
investor is providing a creative solution to the owner of a distressed property and/or the owner may be distressed. Having a dis tressed situation creates an opportunity for the investor to help and prot as well. Sensei reminds his devotees that in today’s ooded foreclosure market, whole saling is a service that is needed more than ever. Sensei’s mindset of placing people before prot is the philosophy he carries with him when he approaches any deal and in his own dealings with people. “Help rst,” he stresses, adding, “You will be blessed with rewards later.”
#3: Your Target Zone: For maximum success, farm your area just as a REALTOR ® would. Posting signs around your farm area, as well as displaying a clever advertisement on your vehicle, can lead to success. #2: Make Many, Many Offers! An aggressive investor should be making at least 10 offers a day or 200 offers per month. How do you compare?
Expertise: Retail Foreclosures Short Sales Agreement for Deeds Apartments REOs Auctions Subject-to Lease Options 6601 Owens Drive, Suite 245 Pleasanton, CA 94588 Tel: 925-460925-460-8255 8255 www.bestrealty-ca.com
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reWEALTHmag.com
David Lindahl, pg. 7
them deals). I learned what they were look ing for in a property. And whenever I found something in common among investors, I knew I was on my way to developing a system for creating wealth with real estate. My rst building was small three-unit at. But it was a “prot snowball” that put everything in motion and would lead to an avalanche of income. Within six months I had nine properties. At the end of my rst year, I owned 11 small apartment buildings, giving me a positive cash ow of $9,700 per month. I was motivated!
Knowing how to invest in apartments without personally dealing with tenants is essential to becoming a multimillionaire investor. I never deal with tenants personally. I never personally x leaky faucets. I don’t mow lawns. I turn all the landlord duties over to management companies. A good management company makes you money and should be viewed as an income generator, not as an expense. Today I control over 7,400 units. That’s 7,400 checks from tenants. My monthly cash ow is greater than what many people make in a lifetime. But I almost never got started because of a few misconceptions that most newbie investors face.
Millionaires Are Not Landlords It surprises some people when I say that 4 Misconceptions That Can my key to moving into the major leagues of Cost You Millions real estate investing — what skyrocketed Some notions about investing in apartme from owning just a handful of small ments are as outdated and at-out wrong as buildings to controlling more than 300 properties — was my decision not to be a thinking the world is at. Yet they continue to hang on and stop thousands of investors landlord. I would do no “hands-on” work.
from taking advantage of the huge moneymaking potential that apartments hold. Misconception #1: Small investors should start with single family homes be cause there’s less risk. Apartments can be the safer way to get started. If your tenant moves out of a single family house, your property sits empty. The mortgage isn’t going to stop until you nd another tenant. However, if a tenant moves out of an apartment complex, the income continues to ow from other units. Misconception #2: Apartments are more difcult and time-consuming than singlefamily houses. Think of it this way… does buying a Porsche take exceedingly longer than buying a Kia? No. It’s the same basic process. With apartments, you use largely the same methods as with single-family homes. And where there are differences, differences, I’ve developed systems that clearly spell out what needs to be done and when. Misconception #3: You need stellar personal credit and high income to buy apart-
ment houses. most every month. My systems When you buy apartment are proven to build, protect, houses, lenders focus on the and ensure wealth — and I’ve cash ow of the building, not grouped them in a one-stop your personal income stream. program called Apartment If you nd a building with a House Riches. I’ve made it simple for alstrong positive cash ow, a building that pays off the loan most anyone to use my stratwithout relying on you, then egies to nd properties and you have a the foundation of vi- structure wildly lucrative deals. able deal. The math is not com - You have a roadmap for mak plicated. I’ve created a work - ing buckets of money i n today’s sheet that lets me know within market just as I do. seven minutes if a property is a viable investment — so simple Apartment House Riches a fth grader can do it. In your community right now Misconception #4: Investing there are apartment buildings in apartments means dealing rich in income potential. My with tenants. Apartment House Riches proIt has been years since I gram shows you how to nd spoke with any tenant. But them. It gives you proven strat you don’t want to replace one egies for making money hand headache (dealing with tenants) over st. with another headache (dealing To preview this exclusive with ineffective management program visit www.rementor. companies). So I created a pro - com/realty411. cess that allows me to “manage the manager” effectively and Dave Lindahl is the author of protably. several top-selling books including “Commercial Real Strong Systems Make Estate Investing 101,” written Strong Investors Only take advice on invest- with Donald Trump. For more ing in apartments from some- information on his authoritaone who is making millions tive master course, Apartment of dollars practicing what they House Riches, please visit: preach. I buy apartments al- www.rementor.com/realty411
MMG CAPITAL, CAPITAL, pg. 39
Whereas the majority of banking institutions sell their notes, the company typically holds all of their notes until maturity. MMG Capital prides itself on doing business differently. However, However, Gleason says the cost of their private money is com parable to that of most other private money lenders. Nowadays, investors can expect a total cost for a loan to be in the neighborhood of anywhere from 15% to 20% per annum, that includes the cost of interest and fees. Most Realty411Guide.com
of our terms are between 12 and 36 months.
With their exible lending practices, based on the under writing decisions of real people not computers, MMG Capital is weathering the storm that has slammed America’s real estate sector, unleashing a tsunami of bad debt. In fact, the California company has grown stronger during this turbulent season. For more information about MMG Capital, LLC, visit their two websites: For borrowers: www.mmgcap.com ; Investors: www.mmginvestors.com
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PAGE 61 • 2010
reWEALTHmag.com
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Short Term Term Retirement, pg. 55
state of Georgia. Reedy and his wife have been married for more than 30 years and are both native Memphians. They say they’re fortunate to live and invest in Memphis for several reasons: “We have low price points and high rents per square feet. We are a slow-growth city, we don’t have major swings in the local econ omy.” Historically a trading center for cotton and hardwood, Memphis is now headquar ters for major manufacturing, services and other business sectors. The city is home to three Fortune 500 company headquarters: FedEx, AutoZone and International Paper. Memphis’s economy is diverse. The area services include: banking and nance (First Tennessee, National Commerce Bancorp, Union Planters); real estate (Belz Enter prises, Boyle Investment Co., and Weston Co.); nonprots, including the world’s largest waterfowl and wetlands conserva tion organization (Ducks Unlimited); and a restaurant chain (Backyard Burgers). Science and technology are strong local industries too. Memphis is also considered a Mid-South retail center and an attractive tourist destination. destination. With so many positive attributes, Mem phis is denitely commanding the attention of investors around the world. So now that the word is out about the Short Term Retirement (STR) program, don’t be surprised if you see more investors holding on to their older used car a little while longer so they can buy a rental property in Memphis instead.
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