real estate wealth magazine part 2

WealthReal Estate

Maverick Investor Group

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

A Special Edition from

the Publishers of Realty411

Vol. 1 • No. 1 • 2010

Words of Wisdom fromMasters of Real Estate16 19 Maverick Investor Group

Reveals the Next BIG Thing 35 Bruce Norris Prepares for Annual“I Survived Real Estate” Charity

WealthReal Estate

Maverick Investor Group

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

A Special Edition from

the Publishers of Realty411

Vol. 1 • No. 1 • 2010

Words of Wisdom fromMasters of Real Estate16 19 Maverick Investor Group

Reveals the Next BIG Thing 35 Bruce Norris Prepares for Annual“I Survived Real Estate” Charity

<< Table of Contents >>7 Secrets from the Master! Dave Lindahl shares his latest tips for Investing Success9 No Drama in DaytonTriple Net Houses Helps Investors Profit without Issues11 California Living with Tennessee Cash Flow Mathew Owens, CPA, owner of OCG Properties, explains why he loves to invest out of state14 Beware of the Investment Vampires by RBS Homes16 Dolf & Carter: A Master-mind with Arizona Investors19 Enjoy a Tropical Paradise with Phenomenal Returns

In search of their latest gem in Nicaragua, Maverick Investor Group traveled the world22 Investor Nation Shares their Blue-Chip Real Estate Strategy25 G inger Mac ia ’s Three FREE Ways to find a Great Wholesale Deal 27 Creative Real Es-tate Techniques with Educator Bill Gatten28 Matt Malouf’s 10 Weeks to Massive, Passive Cash Flow30 A Visit with Sensei at his 12 Rounds Club35 Bruce Norris discusses the “I Survived Real Estate 2010”

Charity Walk and Gala37 Join the Ultimate Bus Tour with MemphisInvest.com39 Creative Financing Options with MMG Capital, LLC40 Philbin Capital Discovers Deals in the Golden State42 The Key to Success by Club Founder Sam Sadat

45 Buy Bigger and Better Deals by Kathy Fettke46 Alternative Economics™ Club Debuts in California51 Stop the Gambling! Mike Woo, a “Rich Dad, Poor Dad” protégé, advises clients52 Is Your Mortgage Underwa-ter? Perhaps a Short Pay Refi-nance is the Answer55 Pay Off Your Rental House in Five Years with the Short Term Retirement Program

57 Who’s On Your Team? Insights by 360 Investments

photo: Sam Green

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w w w.TNGt rustdeeds .com951.780. 5856

Cali fornia Depar tment of Real Estate, Real Estate Broker Bruce Norr is Financial Group Inc .

DBA The Norr is Group DRE License 01219911

California Trust Deed Investing

Navigating the prof itable world of

trust deed investing with the help of one of

Cali fornia’s leading hard money lending

companies .

Call or visit our website today for your

Free Book and DVD.

Savings accounts, CDs, and stocks have offered dismal returns over the past several years. The Norris Group’s trust deed investments earn 9% return backed

real estate.

Since 1997, our experienced team of experts has originated California trust deed investments to private individuals,

accounts (including IRAs).

of dollars every month and demand continues to increase. We scrutinize

a trust deed is ever presented to our private money sources.

resources are helping investors clean

DVD on trust deed investing.

Not everyone has the time or expertise necessary to be full-time real estate investor. But there’s still a way to take advantage of the unbelievable opportunity at hand. Welcome to the world of trust deed investing.

9% Return

1st Trust Deeds Only

No Pooling

8-Year Term

60-65% LTV

Cash Flowing CA Properties

Ideal for Retirement Accounts (IRAs)

Experienced Team

event honors her courageous effort to fight this disease and hopefully adds to the like-lihood of someday finding 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.

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” of the real estate i n d u s t r y. We take this night to show other sectors that we, a s i n v e s t o r s , play a signifi-cant role in the solution side of the market.”

Norris knows firsthand that real estate investors take great risks in a volatile mar-ketplace. “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.

“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. Benefits for advertisers include inclusion in all mailers to local, state and national government officials, SEO op-timized website advertising, inclusion in mailers and flyers, 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

by Lori Peebles

Does “Shadow Inventory” really ex-ist? What is the state of the REO market? These are just some of

the crucial questions to be tackled by real estate in-dustry experts on the eve-ning of September 17.

The Norris Group, headed by Bruce Norris, a 30-year veteran known among investors as the “Nostradamus” of Cali-fornia real estate, is once again organizing their an-nual philanthropic event in Orange County.

This black-tie affair is one of the most fash-ionable tickets in town, mixing charity, important trend updates, education, entertainment and industry networking. It is always a sold-out gala, one that attracts the Who’s Who of real estate.

When we attended last year, it was fasci-nating to note that besides all the tuxedos, satin dresses and crème brulées on fine chi-na, some serious industry trends and alter-native solutions were pre-sented in just a few hours.

It was an evening of edu-cation with a sophisticated, entertaining twist, much like the man behind the event.

“The theme for ‘I Sur-vived Real Estate 2010’ will again focus on trends, solutions and have an added focus on the state of REOs,” Norris says. “With constantly changing government regulations, it’s been difficult for anyone in the real estate business to build a sustain-able business model.”

Norris, a 30-year veteran investor (from rehabber to private lender) is a champion

Investors & Industry Leaders Share an Evening of Glamour & Giving

The 3rd Annual “I Survived Real Estate 2010” will Raise Money for Breast Cancer Research & Unite the Nation’s VIPs to Discuss Investing

for investor rights. For the past two years, he has united real estate giants to discuss the issues that matter, and most important-ly, to exchange ideas that can help investors do what they do best: rebuild communities

and rejuvenate econo-mies.

“The panel we’re putting together can speak about these issues from several differ-ent point of views and hopefully provide us with some new ins ights mov-i ng fo rward ,” Norris explains. Some returning guests, include: Joseph Magdz-iarz, 2011 presi-dent for the Ap-praisal Institute;

Tommy Williams, 2008 president of the National Auctioneers Association; and Christopher Thornberg, principal of Bea-con Economics.

New guests are also being added. “We are very excited to have Sean O’Toole from Foreclosure Radar joining the panel

this year to add his data-driven and in-vestor-minded per-spective.”

For Norris, the “I Survived Real Es-tate” series is per-sonal. This night is a way of honoring his wife, his family, his

community and profession. In the last two years, the fundraiser has

raised over $100,000 for the Susan G. Komen Foundation; these funds are used for breast cancer research.

“My wife, Marsha, was diagnosed with breast cancer more than 15 years ago. This

Bruce Norris with his wife & son.

Guests at the last year’s event.

Tommy Williams

Realty411Guide.com PAGE 35 • 2010 reWEALTHmag.com

Mainstream reporters who present real estate as doom and gloom surely haven’t been to Mem-phis. The city, known as

the birthplace of rock ’n’ roll and the blues, is bustling with industry activity — and visitors aren’t just touring Graceland and Beale Street, they’re leaving as bona fide landlords.

Our editorial team was invited to attend The Ultimate Cash Flowing Buying Tour by MemphisInvest.com, a boutique, Mem-phis-based brokerage catering to out-of-state investors.

The company, which serves more than 200 clients and manages more than 650 in-vestment properties for them, joined forces with the San Diego-based FortuneBuild-ers, Inc., (owned by Than Merrill and the “Flip This House” team) and together they organize one of the largest property buying events in the nation.

“You’ll never see anything quite like this,” promised Kent Clothier Sr. during our telephone conversation a few months ago. Kent Sr. is found-er of MemphisInvest.com. He takes the helm of the 18-team- member operation, which is managed by his three sons, Kent, Chris and Brett.

In my six years as an out-of-state inves-tor, I had never attended a property buy-ing tour. Plus, I repeatedly heard about the benefits of the Memphis market from many sources. I thought, ‘What a perfect time to put on my reporter’s cap and go get the scoop.’

The Ultimate Cash Flow Buying Tour def-initely stood up to its name. Just being in a room filled with investors from around the nation was electrifying. On the first day, the event was held at a ballroom in the Hilton Hotel, a circular 27-story glass beauty with

outstanding views and plump pillows. In-vestors traveled from 18 states to attend, one couple arrived from Canada.

Most of the attendees were investors wanting to learn how to be-come MemphisInvest.com clients. Many were referrals from their existing client base, and some were repeat customers.

“Our average client buys four homes and refers us to all of their friends and fam-ily,” says Chris Clothier, director of sales and market-ing.

MemphisInvest.com pro-vides clients with an option of either buy-ing a turn-key rental home or one that needs rehab. The company oversees the work for the investors. Each property has a separate quote for the renovation included in its pro-forma profile. If the rehab goes over bud-get, it comes out of the company’s pocket.

MemphisInvest.com caters to investors who are looking to buy in typical middle-class areas. The company says they stay away from crime-ridden pockets of the city, regardless of how the numbers may appear on paper.

“We only offer houses in the same areas

ALL ABOARD!

where we have our own personal invest-ments,” Chris says. The Clothiers person-ally own more than 100 rental homes in a handful of quality, long-term buy-and-hold areas of Memphis.

Typical home prices range from $34,000 to $85,000, rents average out be $850 per month. The city boasts high rents and low prices. But surprisingly, 48% of Memphis residents rent.

The Clothier family, who were formerly in the grocery business, moved to Tennes-see because they saw such an opportunity for long-term real estate investing and monthly cash flow.

At the time, Kent Sr., Kent and Chris were scattered about, working in different real estate markets (Texas, Colorado and Florida). Memphis real estate brought the family together. It’s an additional perk for proud papa Clothier. “I’m the luckiest man in the world to have my sons working next to me,” Kent Sr. told the crowd that day.

On the first day of the tour, the investors gathered to get educated on the local mar-ket, meet the Clothier family, and mingle with JD Esajian from FortuneBuilders. (The “Flip This House” team owns numer-ous rentals in the area.)

for The Ultimate Cash Flow Buying Tour

Continued on pg. 58

The Clothier family, from left to right: Chris, Brett, Kent and Kent Sr.

MemphisInvest.com & FortuneBuilders Unite Investors from 18 States & 2 Countries

and Sell 29 Rental Homes in 2 Days!by Linda Pliagas


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MMG June2010 Ad PRINT.pdf 1 6/16/10 12:49 PM

We’re looking for current value as opposed to future value. Loans that need to be based on an ARV or higher appraisal value won’t typi-cally work for an asset-based lender. However, we do have clients who are rehabbers who own other free-and-clear property, they then secure a line of credit with us for the purpose of purchase and re-habbing more property.

The allure of their program is that underwriting guidelines are not based on the borrower’s credit, income or seasoning, which truly opens up the play-ing field for many more investors. In real estate transactions, time is truly of the es-

sence, and Gleason explains how their pro-gram can help investors move confidently on offers and close quickly on deals.

We take a very common sense approach to lending. Asset-based lending has been around for decades, but it was largely abandoned by most firms during the boom years because anybody who could fog a mirror could get credit. Now we’ve ar-rived back to an old school standard where we’re lending realistic amounts against realistic values and realistically taking into account the kind of trouble that our marketplace is in. It’s really a plus and a minus for investors – only those who have solid assets are able to obtain financing and “nothing down” scenarios don’t ex-ist anymore. But, for those who have the net worth to support an asset-based loan, there’s very little competition for them and they can align themselves with a private lender like us who will provide them quick capital based on their current equity.

Seeking Financing for Your Next Deal?

This California-based private lending company offers creative

financing solutions in all 50 states

MMG Capital Funds Creative Investors Across the Country

Interview and article by Lori Peebles

MMG Capital, LLC, an asset-based lend-ing company, be-lieves successful in-vestors need to have skin in the game.

For that reason, they still invest company funds alongside those of their investors who supply the private money used in their operation.

Both company and client assets have grown significantly since their formation in 2007. In fact, the compa-ny’s principals have been responsible for the man-agement of assets valued at more than $6 billion.

Although MMG Capi-tal 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” firms keep close to home and rarely venture off into faraway markets.

“We’ll go to all 50 states,” says Chris Gleason, managing director of MMG Capi-tal, LLC. He explains further, “There are a number of markets across the country where we’ve found the types of deals that we look for, and they tend to be in higher value areas with greater demand.”

Currently, the states where MMG is the most active are California, Florida, New York and Tennessee.

The firm’s success stems from their rig-orous lending practices, Gleason admits that only one deal out of 75 makes sense for them to lend on. However, since they are an asset-based lender most investors have an easier time qualifying for an MMG loan

compared to a bank. With MMG Capital, no income verifica-tion is needed nor is credit score or sea-soning taken much into consideration.

Recently, our editorial team spent time reviewing some of the company’s pro-grams, which include private lending, trust deed investing and unique investing vehi-cles, which offer short-term liquidity and

safety backed by real estate. We then asked Gleason to give us and

our readers a better understanding of how their services can help leverage the as-sets of their clients so they can grow their wealth more quickly.

First, Gleason gives us a glimpse as to who their typical “hard money” lending client might be and shares some of the cri-teria they look for when funding deals.

We see a very wide range of real prop-erty investors who are looking for capital, all the way from the most sophisticated investor down to the beginner. The inves-tor who makes the best candidate for an MMG Capital Loan is the investor with at least moderate real estate investing ex-perience and a substantial balance sheet. MMG Capital is an asset-based lender, so we’re really looking for two things: hard equity and net worth. We can be a great financing partner for a real estate inves-tor who is doing significant business and already has some substance to their bal-ance sheet. Continued on pg. 61

Chris Gleason


Woodson “Chip” Philbin be-gan his career as a securi-ties broker, but he soon left Wall Street

to sell “tangible” investments. Fast forward 23 years later, the Sacramento-based lender and mortgage broker now has a successful career as a real es-tate syndicator.

Many professionals are lured into the real estate industry with a hope of one day purchas-ing the very object they sell. At first, Philbin, CEO of Philbin Capital, wasn’t focused on his own portfolio as much as those of his clients. He was initially attracted to the business as a commercial real estate lender and mortgage broker because it made financial sense in contrast to the high volatility of the securities market.

“At one of my previous employers, the management started a real estate investment trust, got it listed on the American Stock Exchange, and raised about $100,000,000 to do mortgage loans. They went through the hundred million in about five years,“ he recalls. “Here I learned that one of the main objectives of those that manage REITS is to generate management fees and not nec-essarily safeguard their investors’ money.”

That experience, along with his experi-ence as a stock broker and other stories similar to ENRON, made Philbin wary of paper assets. He explains: “Stocks have limited true inherent asset value contrary to real estate, which is tangible.”

Philbin, who was busy arranging funding for multimillion dollar deals his investors were securing, did not stay on the sidelines for long. “I formed a partnership with ten people I knew, and we made a hard money loan to a small grocery store north of Sac-ramento,” Chip says. He adds, “We loaned the owner/operator about $1,000,000 at 11% for two years. I had $100,000 in this deal and my investors provided the rest.”

One of the benefits of working in real estate is the networking opportunities that

come about in everyday affairs. Routine business connections can turn into friend-ships, which can then evolve into joint ven-

tures. That was exactly the case for Philbin. His career as a commercial mortgage broker opened the way for joint ventures with his as-sociates and clients.

“I was referred to a well-heeled investor by Comer-ica Bank, who owned a high tech company in Santa Clara and needed to refinance his plant. I ar-ranged the loan and didn’t hear from him for about

four years,” he recalls. But then one day, opportunity knocked.

“He called me in to discuss another refi-nance, this time a cash-out refinance. We did some analysis on how much he should borrow and I arranged another loan for him. At that point we decided to become partners and to purchase cash-flowing commercial and multifamily property.”

The new partners joined forces and funds, which led to the purchase of a 72-unit apartment complex in Chico, Calif., a property they still own today.

When questioned about his transition from adviser to partner in his dealings with clients, Philbin replies: “People have a real need for trusted advisers who are experts in their given industry. If you have a high degree of integrity and put your clients and investors ahead of your own interests, then opportunities will present themselves.”

Although rehabbing tends to attract the spotlight in real estate, Philbin shuns those quick-turn deals and prefers to invest with a five to seven year minimum holding pe-riod. Because of his mortgage background, when possible, Philbin prefers to refinance the asset after an initial holding period so that investors can retrieve their initial down payment, leaving little or no cash in the deal and magnifying returns. Philbin is partial to owning retail centers, single tenant NNNs, multifamily and industrial properties.

His angel investor continued to be in-volved in projects with Philbin and togeth-er they built a solid portfolio.

“With him as my partner, I developed three single-tenant NNN leased commer-cial buildings, all leased with terms of 15 to 20 years, in which I placed fixed-rate permanent financing right after completion and occupancy by the tenants.”

Long-term buys may be his strategy of choice, but make no mistake, cash flow to-day is the goal when Philbin and his inves-tors acquire a property.

His success record is impressive. “The cash flow from this small portfolio is nearly $400,000 annually, plus I was able to finance out almost all of our entire cash investment, so we have very little cash left in these deals.”

The massive passive cash flow has been a blessing, but Philbin admits it made him a bit complacent. For the past several years he’s been working primarily on his handi-cap at the Northridge Golf Club in Fair Oaks instead of pounding the pavement to procure new investors.

But now that his primary angel investor is retiring, Philbin is actively recruiting new investor partners who are interested in commercial investment opportunities in the Northern and Central California mar-ketplace.

The company prides itself in investing funds into every deal alongside the partner. He believes in full disclosure, low manage-ment overhead, and welcomes partners who are relationship-oriented and are seeking long-term, tax-sheltered passive income.

While profits and returns are what inves-tors strive for, Philbin stresses that build-ing long-term business relationships is the most gratifying aspect of the real estate business.

“I really enjoy people and enjoy the real estate business,” says the 29-year industry veteran.

For questions regarding commercial real estate, contact Chip at (916) 961-6832 or visit: www.PhilbinCapital.com

Chip Philbin


Veteran Syndicator DiscoversGolden Opportunities in California

by Lori Peebles

Real Estate Investments/Partnerships

Visit our website at www.philbincapital.com

“[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

Chip Philbin 916-961-6832 [email protected]


later when he worked for the Atari Corporation. Thanks to his modern dance classes, he was able to calculate how much resolution of movement was needed in their video games.

The real estate entrepreneur Frank Morrow explains that he got his entrepreneurial education while attending the graduate school of business at Stanford. Although he took

all the required courses in marketing, fi-nance and accounting, he said. “I learned more about business from a drawing course than anything else. My teacher taught us: ‘All art is a series of recoveries from the first line. The hardest thing to do is to put down the first line. But you must.’ The same is true in business. You must act. A lot of business school-types analyze things to death and never get around to acting. Perhaps more of them should take drawing lessons.”

I believe your mindset is more important than nuts and bolts. We have plenty of real estate knowledge at our monthly meetings and seminars to arm you with helpful tools to succeed in this market. But I challenge your beliefs relative to success. Remem-ber that unless you break with the old, you won’t let in the new. In other words, Light (education, abundance and love) won’t come into your life until you show the courage to literally kick out Darkness (ignorance, scarcity and fear.)

So expand your horizons, step outside of what’s considered normal, break the boundaries of what seems reasonable, and act upon your knowledge. There’s never been a more important time in our coun-try’s history (or the world for that matter), than the present. What we do today will af-fect humanity and shape our future destiny. So, let’s make it a good one.

Kindest regards,Sam Sadat — [email protected] sure to visit online: www.LAREIC.org

Are you a creative person? When was the last time you came up with a creative idea? But why

be creative? Why challenge the rules and perhaps even appear stupid to others? Be-cause creativity is the stuff of life. That is a big reason, but there are other more reasons to consider. Another reason is change. We all know the only constant in life is change, albeit we tend to resist change. (In fact, the only person I know who likes “change” is a wet baby.)

When things change, new information emerges, which leads to a brand new set of problems. It’s proven time and time again that it’s no longer possible to solve today’s problems with yesterday’s answers. So you have a decision to make: You can either complain about how difficult things have become or employ your creative juices to come up with new ideas, new solutions,

and new paradigms. This economic turndown has vastly influ-

enced our lives in recent years. It has forced us to stop and examine our lives. Socrates once said “an unexamined life is not worth living.” So, I think this recession may ulti-mately prove to be a good thing because we are learning valuable lessons. What would make it even better is if we further examine our spending habits and reasons why we tend to live beyond our means. This kind of introspection is needed if we are to attain financial freedom ourselves and to save our great country from becoming another great civilization that was.

To affect positive change we needed an impetus and we got one, the Subprime Meltdown, the biggest economic downturn since the Great Depression (or as I call it, the 9/11 of the business world). It is here

for a few more years, but to benefit from it maximally requires new knowledge and applications. Remem-ber how our lives have changed since the 9/11? Well, the business rules of engagement have also changed drasti-cally. Real estate has taken the biggest blow, and as usual, our gov-ernment’s answer to every problem is more regulation. In contrast, I advocate educa-tion over regulation. But you can’t find that kind of knowledge in any accessible or even comprehensible fashion in our bu-reaucratic system.

To obtain this kind of knowledge required for prosperity, you need to attend and net-

work in real estate meetings and seminars. Venues such as our real estate club, Los Ange-les Real Estate Investors Club (LAREIC), will provide you with the new knowledge on how the game is being played now. Once you know what’s working in today’s market,

you’d be able to further develop your cre-ativity and capitalize on it more effectively. Without this new information, you’re lim-ited to old solutions, which are ineffectual in our fast-changing world.

I believe there are ways to enhance your creative powers. Here are a couple of sug-gestions from two highly successful peo-ple.

Steven Jobs was asked why some people are more creative than others. He replied, “Innovation is usually the result of con-nections of past experience, but if you have the same experiences as everybody else, you’re unlikely to look in a different direction.” For example, in college, Jobs took modern dance classes to meet women. What he didn’t realize was how much he learned about movement and perception in those classes, which came handy years

Success and Happiness in Lifeby Sam Sadat, founder of Los Angeles Real Estate Investors Club

Socrates once said: “An unexamined life is not worth living.”


Success and Happiness in Life

LARGE EQUITY AND POSITIVE CA$H FLOW

?

DPW helps investors create wealth through Real Estate Investments. We will show you how to become a successful investor. We take away all the guess work because real estate investing should be effortless. We will do everything we can to make sure our investors are taken care of and are educated on the entire process. Our goal is to make real estate investment easy for the average investor through our various investment programs.

?

How to Get the

by Kathy Fettke

Trying to get a good deal

in today’s market can be frustrat-ing. It might mean making a hundred offers before you get the one that makes sense. And even if you have cash and will close “as is,” you still might lose out. Or you might end up with the property and find out later you paid too much or got stuck with a lemon.

So how are the experienced investors getting deals with less effort? At Real Wealth Net-work, we have found the power of numbers. Our teams buy in bulk directly from the bank. The banks love this because they can move more property at once, even if it means slash-ing prices. In most cases, the properties never make it to the open market before we’ve hand-picked our favorites. It’s tough for an individual to com-pete with a bulk purchase.

We also pool funds to pick up almost-complete subdivi-sions or multi-family proper-ties. Again, this is tough for the

Bigger Better Dealindividual investor because the price tags are much higher, but the deals are sweeter. For example, we just wrote down a $12.9 million FDIC loan to $3 million on 27 al-

most-finished water-front con-dos in Portland. Investors will make over 40% in one year.

This is truly the greatest wealth transfer in history. Op-portunities abound, and to-gether we can make it happen. Mistakes happen when inexpe-rienced people jump into some-thing they don’t understand. That’s why so much wealth has been lost over the past decade. You don’t have to go it alone, learn from the experts.

Real Wealth Network brings new and experienced investors together to share information and learn from each other.

Our site has articles, videos, blogs, podcasts and downloads to help educate our members to make smart investing decisions during this once-in-a-lifetime opportunity. For information, visit: www.RealWealthNetwork.com

Owned by Linda PliagasHer credentials include:

Landlord since 1994Licensed Real Estate

Sales Agent since 2000Out-of-State Landlord since 2004 - 5 States

Founder & Publisher of Realty411 since 2007

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California 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 in-vestor 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 financial education training is based on Alternative Economics™, a personal system of financial 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 financial growth stages.

Ritchie, who has regularly attended real estate clubs for years, chose to align him-self with the National Strategic Investment Corporation (NSIC). His new club, the Cerritos Investor Education Club (CIEC), is the first California chapter. Ritchie’s goal is to form a club with diversified investment strategies to provide his mem-bers with “alternative investment strate-gies, not just real estate,” he says.

Ritchie has spent a lot of time and resources in developing his investment game plan. He is a David Lindahl graduate and also learns through the Joel Block’s syndication system. It is at Block’s event where he met NSIC 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

Alternative Economics™

Club Launches in CA

Roger Ritchie Leads New Group

that owns a 112-unit apartment complex in Florida.

Ritchie wholeheartedly believes in the importance of diversification and says others feel the same way. “This breadth of investment strategies attracts a much larger segment of my com-munity,” he says. “Being built around Alternative Economics™, I am providing applicable eco-nomic alternatives to help mem-bers develop their own personal system of financial growth.”

Through monthly meetings, Ritchie says CIEC will provide educational products to educate investors about a broad range of investment vehicles, both locally and nationally.

CIEC is now part of what makes up a growing investor community known as the National Strategic Investor Group (NSIG), whose clubs are based on the NSIC club model.

The NSIC is a company teaching invest-ment and economic alternatives.

In addition to its readily applicable financial education, NSIC provides resources, products, services and oppor-tunities through local and virtual investor clubs.

Ritchie is excited about CIEC’s launch and he credits Hettema’s office with providing him with the tools needed for an association to succeed.

“ Not only does NSIC provide me with all the resources to start and manage my club, but the NSIC model shows me exactly how to successfully establish my club step by step.”

To learn more about NSIC, visit online www.ciec.nsicgroup.com and download the free Alternative Economics™ e-book. For information about CIEC, contact: Roger Ritchie, Club Leader of the Cerritos Investor Education Club, (714) 793-3167, [email protected]

by Linda Pliagas

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Alternative Economics™

Club Launches in CAThey pay no expenses. If they finance the house for example at 5.5% or 6%, you’re going to get that spread using the bank’s money. If you buy a house for $60,000 and you put down 20%, $12,000 on the $48,000 you’re borrowing, you’re going to make 3.5% but that’s not us-ing any of your money. You’re not making 3.5%; you’re mak-ing an infinite return. It’s the bank’s money. Now you’re go-ing to get 9.1% on the balance,

for a total return of 17%.”Obviously, a lot of planning

went into Julian’s investing modes. His personal experi-ence as an investor started in 1975, and he’s been a real es-tate broker since 1979. Born in New York City, he moved to Dayton with his parents while he was in high school. He later attended Wright State Univer-sity. Julian has been married for 36 years. His wife is a re-tired public librarian who still substitutes when needed. They have one son, Paul, who is 26 and is trained as a chemical en-gineer.

“But guess what?” Julian asks, and proudly replies: “He’s working for us now as an op-eration’s manager. It’s a family affair.”

News about Julian’s NNN model has spread quickly large-ly through referrals and online connections. “We have a blog, we do webinars, we do confer-ences just like your magazine.”

Now that Julian has estab-lished his NNN presence in the investment market, his new goal is to expand conserva-tively. He explains: “We want to grow fiscally responsibly. This year we’d like to do about 120 houses, about 10 a month.

We’re not quite at that target but we’re real close. It’s grow-ing in the right direction. Next year we’d like to do 150 to 160 houses.”

As they continue to grow and prosper, Julian expressed his thoughts about expand-ing to other locations or cities. “In another year or so we plan to move to Cincinnati, which would be the logical city. It is about 50 miles south of us with similar demographics.”

In real estate investing, slow and steady wins the race, and Triple Net Houses would win the Innovative Risk Reduction Award if they were to establish one in our industry.

For more information, please visit ww.TripleNetHouses.com

“This year we’d like to do about 120 houses, about 10 a month.”

Triple Net Houses, pg. 9


,

,

,

Many Investors gamble their financial future and retirement dreams on capital appreciation. Michael Woo, chairman

of Longfin 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 Longfin Investment Solu-tions (LFI), Woo created a turn-key invest-

ment system for investors who seek cash flow in emerging markets. “Our properties are totally rehabbed, with existing property management, and often already have renters in place,” Woo says. “Our average NOI (Net Op-erating Income) rate of return is between 25% to 36% ROI (Return on Investment) with 10% to 12% cap rates. Why wait for tomor-row when you can cash flow today?” An avid fisherman, Woo, who is a native of Southern California and graduated from Torrance High School and San Diego State University, named the company Longfin to commemorate a fish-erman’s special name for the albacore. “Albacores are renowned by sportsmen all over. They are a much sought-after game fish with attributes of being fast-moving hunters that operate together to achieve goals,” he explains. Woo’s individualism also positively im-pacts his investment philosophy. For example, while many investment bro-kerages only deal with one specific type of property, such as single-family homes, Woo’s investment strategy is to find deals across the entire market spectrum. Instead of letting headlines predict where

to invest, Woo says he bases his compa-ny’s approach on solid, factual data. “Our team constantly seeks out markets that can weather the storm based on strong job growth and economic or population expan-sion.”

Woo began his career as a real estate investor in 1995. Before eBay was ever in the picture, Woo sold and marketed collect-ible toys as a way to raise capital for his first investment. In two years, Woo raised

$50,000, a down payment for his very first property. Since then, Woo has been in-volved in hundreds of transactions.

His skills in the industry did not go unnoticed. In February, Woo was honored as the recipient of Rich Dad edu-cation’s Hall of F a m e Aw a r d , p r e s e n t e d b y “Rich Dad Poor D a d ” a u t h o r Robert Kiyosaki. Woo was hon-ored for his role

in increasing financial intelligence. In ad-dition, he was acknowledged for dedicat-ing his time to helping others improve their own lives.

“We teach real estate investing funda-mentals, including having the right mind-set and goals,” Woo explains. “We want to make each investor a better person and ex-tend their investment dreams further than they could have ever imagined.”

In addition, Woo says they teach inves-tors to understand demographics, locations, cash flow and ROI.

Recently, Woo expanded LFI and added a dynamic partner: Erica Reynolds. She has been appointed as vice president and marketing partner. Additionally, she is also

the CEO of ER Real Estate Investments. Reynolds purchased her first rental at age

24 for $10,000 cash. Since then, she has been involved in numerous transactions and she is also currently an out-of-state in-vestor. Reynolds enjoys assisting others in also maximizing their potential through the purchase of passive income real estate.

“My core belief is that real estate creates wealth, and wealth is effectively amassed through real estate acquisitions,” she says.

Both Woo and Reynolds have great na-tional resources accumulated from years of personal relationships, which they pass on to their clients. They also have established relationships with private equity lenders for financing. “Lending is not a problem for LFI and we do not want financing to be the reason you do not take action toward investing,” says Woo.

LFI also created an affiliate marketing partner program, which offers profit shar-ing.

R e y n o l d s e x -p l a i n s , “ B e i n g 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 benefits.” 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 Longfin Investment Solutions at: (949) 388-0678. Visit LFI at: www.longfininvestments.com

Stop The Gambling!

Mike Woo with “Rich Dad, Poor Dad” founders, Robert and Kim Kiyosaki

Erica Reynolds

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


Homeowners a l l across the U.S. are feeling stressed

out due to a decline in the value of their homes and the fact that they now owe the bank more than their property is worth. However, there is hope through an option known as short pay refinance, which is a great solution for them, if they qualify.

According to a report pub-lished in May 2010 by First American CoreLogic, a real es-tate information company based in Santa Ana, Calif., “more than 11.2 million, or 24% of all resi-dential properties with mort-gages were in negative equity at the end of the first quarter of 2010.” Out of that number, in California alone, more than 2.4 million homes, or one third of all mortgages, have negative equity.

The underwater mortgages and negative equity pose a roadblock to a housing recov-ery because the underwater mortgages are more likely to fall into default leading to a po-tential foreclosure by the bank. Most banks have already been taking big losses on foreclosure and short sale properties and are considering other options as well.

Short Pay Access, a company based in San Ramon, Calif., is able to help homeowners anywhere in the U.S. through the best short pay refinance program available today. The company does not charge any

up-front fees to homeowners. It offers a solution for both banks as well as for the homeowners. The homeowners get to keep their home with a lower princi-pal balance and lower monthly mortgage payments more in line with the current value of their home, and the banks get a chance to “clean-up” their bal-ance sheet by getting a property completely off their books.

Banks are becoming more willing to accept a short pay refinance especially if the bor-rower is current on their mort-gage but is experiencing some type of short-term financial difficulty or the interest rate on the borrower’s current loan is about to increase.

A short pay refinance also provides the bank with an infu-sion of “cash,” which increases their ability to invest in other opportunities or to lend out. Banks are in the “lending” business and not the real estate business.

Unlike a loan modification or a short sale, which sometimes requires a borrower to be delin-quent on their mortgage pay-ments, the short pay refinance program follows standard lend-ing guidelines and only works if the borrower has a clean recent mortgage payment history.

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1. The mortgage needs to be more than the current market value of the home.2. Borrowers need to be current on their mortgage – no late pay-ments.3. The borrower’s credit score must be 620 or better.4. They must have verifiable income.5. The prop-erty must be the borrower’s primary resi-dence.

Short Pay Access works with the lender in order to complete the short pay refinance and gets the lend-er to write off a portion of the loan amount. A short pay refi-nance gives homeowners the ability to refinance their homes at the fair market value. The process involves paying off the current lenders loan at fair mar-ket value and then refinancing

their home with a new lender at the current market value.

The Short Pay Access team consists of experienced nego-tiators who have carefully built working relationships with lenders. The negotiating team is well versed in the lender’s requirements and preferences and uses this experience to help

the homeowner without wast-ing any time dealing with un-knowns.

For more information, contact Short Pay Access online at www.ShortPayAccess.com or call (925) 309-6109 for a no obligation free consultation.

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!


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 five years — the same time as the car.

This turbocharged investing structure,

coined the Short Term Retirement pro-gram, is marketed by Jim Reedy, CEO of Memphis Investment Properties, LLC, a full service real estate investment broker-age and management company.

Memphis Investment Properties (www.memphisinvestmentproperties.net), found-ed in 1985 by Reedy and his wife, Debi, is an exclusive provider for the Short Term Retirement (STR) program in the Memphis metro area.

T h e m o s t enticing as-pect of STR is the speed in which an investor can h a v e t h e i r rental com-pletely paid o f f , w h i c h t h e n m a x i -m i z e s c a s h f low. The i r program also offers tremendous flexibility, enabling people who normally would not be able to qualify for a property a chance to build wealth by owning rentals. Tradi-

tional roadblocks, such as the number of existing mortgages one has, or a lack of seasoned funds or less-than-stellar credit scores are simply non-issues with their private financing program.

So what’s the catch? A larger-than-normal downpayment for a residential purchase is required (30% to 50%), which is ac-tually a percentage that is common these days in commercial real estate transac-tions. The property is then paid off in 60 months (amortized in seven years). In the meantime, in-vestors can expect a bit of monthly cash

flow to help them maintain the property.It’s a bullish investing program offering

easy terms and, best of all, no restrictions.When Reedy found out about the pro-

gram, which was developed by Robert Feol, a local real estate finance expert, he knew he wanted his company to have ex-clusivity. Reedy says the program was so good, he wanted to keep it all to himself. Real estate has been Reedy’s passion and

focus for 34 years. He majored in real estate at the University of Memphis and has been sell-ing homes since his senior year.

“I fell in love with real estate during college,” he admits. “The sky was the limit.”

Reedy says that from per-sonal experience he knows investing in real estate is more lucrative than working as a REALTOR®. His family cur-rently own and manage an

impressive personal portfolio of more than 300 single family rentals.

Because Reedy and his team are active real estate investors, servicing hundreds of

investors annually, he says they can deliver properties at deep discounts.

Additionally, since Reedy knows that cash flow and built-in equity at purchase are primary components of a great investment, he says they “are willing to leave enough profit in the deal for the client to have great cash flow and success, which leads to re-turning clients and more business.”

To handle the management of his own rentals, as well as t he bu rgeon ing empire of his cli-ents, which now number close to 1,000 properties, Reedy relies on his staff of 15, which includes four full-time leasing agents a n d n u m e r o u s independent con-tractors.

In 2008, Craig Jennings was recruited to handle investor relations. Jennings es-tablished himself with Reedy as a talented wholesaler, often providing Reedy with outstanding deals for his clients.

Shortly after, the team was joined by Curt Davis, who is now a leading sales execu-tive for the company. Together they field requests and answer questions from in-vestors around the nation, and even from around the globe.

When asked where the majority of Mem-phis Investment Properties’ clients come from, Reedy quickly replies that most of their investors come from the West Coast, California in particular. The East Coast also brings in a lot of activity. Tennessee is also gaining popularity with investors living outside of the United States, as well as with recent U.S. immigrants. Reedy says lately he is seeing “lots of foreign activity.”

For Reedy and his team, real estate in-vesting is not just a business, it’s a lifestyle. In fact, his wife, Debi, is chief operation officer, and one of Reedy’s five children is also a top producer in her market in the

Keep the Older Car|Buy a Rental Instead

Continued on pg. 62

The team relaxes after a meeting.

Craig Jennings and Jim Reedy.


These days with the current economic and credit crisis, it’s not what you know, it’s who you know. 360 In-

vestments™ realizes that investing in real estate is a team sport. That’s why we have built local power teams in major cities across the country. Having the right indus-try professionals on your team will make all the difference in your investing success. Here is a list of important team members to have on board:•Get a mentor, with a proven track record, who has successfully acquired the type of real estate investments you want to have.

Your local real estate investment associa-tion, abbreviated as REIA, may be a good place to find a mentor. Make sure you con-tribute to your mentor if you are not pay-ing for their time to teach you and take you under their wing.•Find a REALTOR® who can give you in-formation about the local market.

A REALTOR® can provide you with comparable sales (COMPS), current mar-ket values, average days on market (DOM), appreciation/depreciation rates, and other valuable information. Provide leads to your REALTOR® by sending potential clients their way and make sure they receive their

well-earned commission.•A mortgage professional is essential. They can be a direct lender, bank or mortgage broker. Shop around until you find one who can tackle creative ways to finance a deal. Ask about their loan fees and programs. It’s critical to find out about their qualifi-cations, seasoning and percentage-down requirements.

These professionals can also lead you to private and hard money sources. Always ask for a Good Faith Estimate (GFE) and compare statements. Find out their average time to fund and close a deal since time is

money! •The right title, escrow or

closing attorney, depending on the state, is your best friend. Interview several until you find one that un-derstands unconventional ways to transact real estate deals. Ask them if they are familiar with assignments, double or simultaneous closings. You want some-one who can draft up notes, deeds of trust or mortgages. Title representatives can also provide you with ac-cess to title reports, foreclo-sure listings, and farming packages made up of mail-ing lists and labels for mar-keting purposes.•You will need several at-

torneys on board, who specialize in differ-ent areas. Engage an asset protection at-torney who understands entity formation, a local real estate transactional attorney who can review your contracts, and an estate planning attorney to pass your inheritance on to your heirs without costly and time-consuming probate proceedings.•Real estate investments offer huge tax benefits. It is important to get a highly qualified tax professional, a certified pub-lic accountant (CPA), or a tax attorney who understands the tax codes. Choose a pro-fessional who also invests in real estate. They will know the maximum deductions

available to your type of business. •Get an insurance agent who will issue your policies for the best protective coverage in the state where you own real estate at the best prices. Always compare rates.•A reliable general contractor will give you work estimates and project bids. These quotes are tools with great negotiating power. Request a copy of their license and check with the state board to make sure the contractor is in good standing. Get plenty of references and do not pay in advance. •Locate a certified property inspector who will inspect your properties and provide a detailed inspection report and photographs of their findings. The report can be used for negotiating the purchase price. It can also be used as a walk-away clause.•Appraisers are priceless in this current market. They provide market values, com-parable sales, and draft up appraisal reports on their findings. Please note, with the new HVCC guidelines, lenders choose their own appraisers when determining value for lending purposes.•Property managers and management com-panies are the key to long-term investing success. Make sure to get lots of referenc-es from other property owners. Review the property management agreement carefully and make sure you understand everything clearly. Find out the management fee, ad-vertising costs, service call fees, average turn-over costs, vacancy rates, eviction rates, total number of units managed, num-ber of years in business, term of agreement, monthly statement schedule, online system accessibility, and direct deposit options. Always retain copies of lease agreements with tenants. It’s your job to manage the property manager!•Last, but certainly not least, get an ac-countability partner and a local network of investors who will provide you with ongo-ing support and updated information on other industry professionals, the markets, and other investment opportunities.

Building a profitable real estate invest-ment portfolio takes a strong team, and more importantly, a great team leader who selects the right team members!

by Crystal Han of 360 Investments™ | edited by Scott C. Seckel

Who’s On Your Team?


August 4, 20106:30 to 8:30 pmPasadena Library285 E. Walnut St.Pasadena, CA 91101

August 5, 20106:00 to 8:00 pmTorrance Library3301 Torrance Blvd.Torrance, CA 90503

August 10, 20105:30 to 7:30 pmAngela Iacobini Library4900 Clark Ave.Lakewood, CA 90712

August 24, 20106:00 to 8:00 pmValencia Library23743 West Valencia Blvd.Valencia, CA 91355

August 25, 20106:30 to 9:00 pmLA Real Estate Investors ClubBeverly Hills Country Club3084 Motor Ave.Los Angeles, CA 90064

A U G U S T S C H E D U L E

The Ultimate Cash Flow Buying Tour, pg. 37

Don’t Miss the Next Tour* September 24 & 25 *Space is Limited, Reserve Early

1-877-773-9998 or 1-901-751-7191http://www.MIBuyingTour.com

or http://www.MemphisInvest.com


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 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 flow property based on an address, a photo-graph and numbers. Most rental homes cash flowed

about $350 monthly.The elegant banquet room where the

education took place was filled with many Californians like me, including a young couple from Burbank who rented a rec-reational vehicle and drove nearly 2,000 miles to buy a property in Memphis.

“We left on the Fourth of July and plan on touring dif-ferent cities for two weeks after this,” Declan and Shaun Hoare said. The new investors purchased a three-bedroom, two-bath brick home on the

Guests listen to Kent Sr.

very first day of the tour.Kent Sr.’s luring promise that I would

never see anything quite like this proved to be true. The action that was taken on that day was mind-blowing. A total of 29 homes were sold, all sight unseen. I was captivated by the volume of deals done as well as the strategies they spoke about, such as their guerilla-marketing leasing system.

Here is the creative way they fill vacan-cies: MemphisInvest.com hires multiple leasing agents on commission to show and rent out their client’s property. A total of four signs are placed on the lawn, each with a different number, each reaching a distinct agent. Competition is created. Each leasing agent is on high alert: If they want to get paid, they have to be the first to answer the phone and show the property.

Another management technique that re-ally stood out is the system they have of calling their clients just to touch base. Once a month, investors receive a status report, even if there is nothing wrong with the property.

“If a client has to call us to check on their property, then we are not doing our job,” Chris explained to the audience.

Our group saw their four-sign leasing system on the second day of the tour. On that day, we hit the road on two buses and saw numerous sample properties.

We saw houses in all states of renovation, from the stinky and messy to the shiny and fresh. The rehabbed homes featured hard-wood floors, soothing earth-tone colors, new tile and new countertops. The quality of their remodel is a testament to Kent Sr.’s perfectionism and attention to detail.

After attending the tour, it became clear that I was in the middle of one of the best investing markets in the country, and in the presence of industry leaders. If your goal is to purchase a quality rental in a burgeoning market and have it managed by a proactive and creative team, then be sure to pencil in the next The Ultimate Cash Flow Buying Tour on your calendar.

6601 Owens Drive, Suite 245

Pleasanton, CA 94588

www.bestrealty-ca.com

Tel: 925-460-8255

Expertise:Retail

ForeclosuresShort Sales

Agreement for DeedsApartments

REOsAuctions

Subject-toLease Options

“Obstacles are the things we see when we take our eyes off our goals.” -Zig Ziglar

More recently, an out-of-town owner of a vacant home began to receive citations from the city due to the blighted condition of a property she owned. The woman no longer had a need for the home, which had been broken into and vandalized. Instead of having to pay additional fines or incur a large expense to fix the abandoned prop-erty, she opted to sell “as-is” to Sensei at a 45% discount, and Sensei flipped the prop-erty using a double-close technique to a rehabber. Sensei used no money, no credit and no loans, just pure wholesaling.

Yes, a profit (typically larger than most real estate transactions) will be made for wholesaling a property as it should be. An

investor is providing a creative solution to the owner of a distressed property and/or the owner may be distressed. Having a dis-tressed situation creates an opportunity for the investor to help and profit as well.

Sensei reminds his devotees that in to-day’s flooded foreclosure market, whole-saling is a service that is needed more than ever. Sensei’s mindset of placing people before profit is the philosophy he carries with him when he approaches any deal and in his own dealings with people.

“Help first,” he stresses, adding, “You will be blessed with rewards later.”

Wholesaling “does not require cash, credit or a license, which

equals NO RISK.”GreenBlasts.comMillions of Opt-In eMails Available

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A Visit to 12 Rounds, pg. 30 Secrets from Sensei, pg. 30

#4: Attorneys and Paralegals: Be sure to market to lawyers who spe-cialize in family law, estate planning and probate. Also, don’t overlook paralegals who can be a wonderful source of leads.

#3: Your Target Zone: For maximum success, farm your area just as a REALTOR® would. Posting signs around your farm area, as well as displaying a clever advertisement on your vehicle, can lead to success.

#2: Make Many, Many Offers! An ag-gressive investor should be making at least 10 offers a day or 200 offers per month. How do you compare?

#1: Piggyback Your Deals: Don’t be afraid to partner up and share your deals with other wholesalers. The more wholesalers in your database, the easier it is to share buyers and sellers. Don’t be greedy and dishon-est. Remember: Your reputation is more important than money. Once tarnished, it seldom can be restored.


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them deals). I learned what they were look-ing for in a property. And whenever I found something in common among investors, I knew I was on my way to developing a sys-tem for creating wealth with real estate.

My first building was small three-unit flat. But it was a “profit snowball” that put everything in motion and would lead to an avalanche of income.

Within six months I had nine proper-ties. At the end of my first year, I owned 11 small apartment buildings, giving me a positive cash flow of $9,700 per month. I was motivated!

Millionaires Are Not Landlords It surprises some people when I say that

my key to moving into the major leagues of real estate investing — what skyrocketed me from owning just a handful of small buildings to controlling more than 300 properties — was my decision not to be a landlord. I would do no “hands-on” work.

Knowing how to invest in apartments without personally dealing with tenants is essential to becoming a multimillionaire investor.

I never deal with tenants personally. I never personally fix leaky faucets. I don’t mow lawns. I turn all the landlord duties over to management companies. A good management company makes you money and should be viewed as an income genera-tor, not as an expense.

Today I control over 7,400 units. That’s 7,400 checks from tenants. My monthly cash flow is greater than what many people make in a lifetime.

But I almost never got started because of a few misconceptions that most newbie investors face.

4 Misconceptions That Can Cost You Millions

Some notions about investing in apart-ments are as outdated and flat-out wrong as thinking the world is flat. Yet they continue to hang on and stop thousands of investors

from taking advantage of the huge money-making potential that apartments hold.

Misconception #1: Small investors should start with single family homes be-cause there’s less risk.

Apartments can be the safer way to get started. If your tenant moves out of a single family house, your property sits empty. The mortgage isn’t going to stop until you find another tenant. However, if a tenant moves out of an apartment complex, the income continues to flow from other units.

Misconception #2: Apartments are more difficult and time-consuming than single-family houses.

Think of it this way… does buying a Porsche take exceedingly longer than buy-ing a Kia? No. It’s the same basic process. With apartments, you use largely the same methods as with single-family homes. And where there are differences, I’ve developed systems that clearly spell out what needs to be done and when.

Misconception #3: You need stellar per-sonal credit and high income to buy apart-

David Lindahl, pg. 7

ment houses.When you buy apartment

houses, lenders focus on the cash flow of the building, not your personal income stream. If you find a building with a strong positive cash flow, a building that pays off the loan without relying on you, then you have a the foundation of vi-able deal. The math is not com-plicated. I’ve created a work-sheet that lets me know within seven minutes if a property is a viable investment — so simple a fifth grader can do it.

Misconception #4: Investing in apartments means dealing with tenants.

It has been years since I spoke with any tenant. But you don’t want to replace one headache (dealing with tenants) with another headache (dealing with ineffective management companies). So I created a pro-cess that allows me to “manage the manager” effectively and profitably.

Strong Systems Make Strong Investors

Only take advice on invest-ing in apartments from some-one who is making millions of dollars practicing what they preach. I buy apartments al-

most every month. My systems are proven to build, protect, and ensure wealth — and I’ve grouped them in a one-stop program called Apartment House Riches.

I’ve made it simple for al-most anyone to use my strat-egies to find properties and structure wildly lucrative deals. You have a roadmap for mak-ing buckets of money in today’s market just as I do.

Apartment House Riches In your community right now

there are apartment buildings rich in income potential. My Apartment House Riches pro-gram shows you how to find them. It gives you proven strat-egies for making money hand over fist.

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Dave Lindahl is the author of several top-selling books in-cluding “Commercial Real Estate Investing 101,” written with Donald Trump. For more information on his authorita-tive master course, Apartment House Riches, please visit: www.rementor.com/realty411

MMG CAPITAL, pg. 39

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Whereas the majority of banking institutions sell their notes, the company typically holds all of their notes until maturity.

MMG Capital prides itself on doing business differently. However, Gleason says the cost of their private money is com-parable to that of most other private money lenders.

Nowadays, investors can expect a total cost for a loan to be in the neighborhood of anywhere from 15% to 20% per annum, that includes the cost of interest and fees. Most

of our terms are between 12 and 36 months.

With their flexible 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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state of Georgia. Reedy and his wife have been married for more than 30 years and are both native Memphians.

They say they’re fortunate to live and in-vest in Memphis for several reasons: “We have low price points and high rents per square feet. We are a slow-growth city, we don’t have major swings in the local econ-omy.”

Historically a trading center for cotton and hardwood, Memphis is now headquar-ters for major manufacturing, services and other business sectors. The city is home to three Fortune 500 company headquarters: FedEx, AutoZone and International Paper.

Memphis’s economy is diverse. The area services include: banking and finance (First Tennessee, National Commerce Bancorp, Union Planters); real estate (Belz Enter-prises, Boyle Investment Co., and Weston Co.); nonprofits, including the world’s largest waterfowl and wetlands conserva-tion organization (Ducks Unlimited); and a restaurant chain (Backyard Burgers). Science and technology are strong local industries too. Memphis is also considered a Mid-South retail center and an attractive tourist destination.

With so many positive attributes, Mem-phis is definitely commanding the attention of investors around the world. So now that the word is out about the Short Term Retirement (STR) program, don’t be surprised if you see more investors hold-ing on to their older used car a little while longer so they can buy a rental property in Memphis instead.

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Short Term Retirement, pg. 55


real estate wealth magazine part 2

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