Real Estate Weath featuring Andrew Cordle Fall 2014

pg. 43 pg. 50 11 Welcome Letter from the Publisher pg. 18 13 Jason Hartman’s Risk Evaluation pg. 23 14 How to Choose Your Next Rental pg. 14 17 Market Insight by Kathy Fettke Pg. 66 18 Key Concepts to IRA Investingpg. 28 20 Invest America Offers Stability 23 Learn All About Crowdfunding 24 Retire Early with Brad Sumrok 26 Mortgage Tips with Steve Bighaus 29 Meet Missy McCall-Hammonds 32 Secrets from Sensei Gilliland 34 To Flip or Not to Flip with Tom Wilson 37 I Survived Real Estate 2014 38 The Future of Self Direction 40 Discover the Miracle of Wealth 43 Rehabs Revealed with Andrew Cordle 50 Don’t Flip This House Just Yet! 52 Rehab Magic with Anthony Patrick 54 The Power of Collaboration 55 Tips to Finding a Mentor 56 Tax Planning Strategies for Investors 57 New: Private Money411 61 Leveraging the Rental Market 63 Zinc Financial Offers Two New Loans 65 The Investor Event of the Year 66 Up Close with Mark Hanf 70 FirstKey Lending Offers Options 78 OC REIA Nourishes Investors 80 Think You Will Never Be Sued? 81 Advice from America’s Top Attorney 84 The Market Has Shifted, Have You? 87 Meet Top Speaker Barry Habib 88 How to Make Tax Liens Work 90 We Made It Happen: A Success Story 92 7 Keys to Successful Stock Trading 96 Tenant Screening & Investor Profit 98 Discover How to Invest in Probates 102 Make Investment Partnerships Work 104 Learn How to Use Private Funds 114 Father & Son Team Educates Investors

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Realty411 WealthRealEstate JasonHartman.comPUBLISHER/CEO BROKER/ADVISOR Linda Pliagas Steve Kendis, GRI, MLO The Complete Solution for Real Estate InvestorsTM DRE #01355569 DRE #00815859 Yes, it is possible to:VICE PRESIDENT PRODUCTIONNikolaos K. Pliagas Earn 10-18% in Your IRA!EDITORIAL STAFF Jeff Cohen Earn 18-35% with Income Property! Lori Peebles Augusto Meneses Platinum Properties Investor Network, Inc. helps WEB MASTER people achieve The American Dream of financial Robb Magley Victoria Landis freedom by purchasing income property in prudent ADVERTISING markets nationwide. Jason’s Complete Solution for Tim Houghten Suzanne Lilly Real Estate Investors™ is a comprehensive system providing real estate investors with education,Stephanie Mojica Morgan Schaal research, resources and technology to deal with all COPY EDITOR EVENTS & EXPOS areas of their income property investment needs. Lori Peebles Teri Burke Featured PropertiesPHOTOGRAPHER John DeCindis Lawrence Ruano ATLANTA COLUMNISTS DISTRIBUTION Tom Wilson To receive complimentary copies, Projected ROI 33% Kathy Fettke please call our hotline 310.499.9545 ADVERTISING: Cash Flow Lori Greymont 805.693.1497 $2,456 Randy Hughes Realty411Guide.com | reWEALTHmag.com DALLAS Jason Hartman Projected ROI 35%Questions? 310.994.1962 or 310.499.9545 Cash Flow Join Our VIP Social Network: http://realty411guide.ning.com $5,294Realty411 / reWealth magazine is published quarterly from Santa Barbara County, Calif. MEMPHIS©Copyright 2014. All Rights Reserved. Reproduction without permission is strictly prohib-ited. The opinions expressed by writers/columnists are not endorsed by the publishers. Projected ROIIMPORTANT DISCLOSURE: Publishers and staff are not responsible for performing due dil- 29%igence on the opportunities offered by this magazine’s advertisers and sponsors. Beforeinvesting in real estate seek the advisement of a trusted financial advisor, attorney or tax Cash Flowconsultant. Beware: Real estate investing can be risky and may result in loss of capital. $3,101 PRINTED IN THE USA — GOD BLESS AMERICA See terms of service at: Connect to our virtual network online: www.JasonHartman.com/terms IRCA-LA Changed It’s Name! www.JasonHartman.com We Create Wealth One Property at a Time Podcast First Time Admission is FREECall 818-217-4630 for more information We Serve Southern Californiawww.prosperitythroughrealestate.comRealty411Guide.com PAGE 9 • 2014 reWEALTHmag.com



Linda’s Note hello! Generate High Yield Passive Income andWelcome to our Build Long-Term Wealth largest issue ever. I’m really 66% $0 40% thrilled to be sharing a FIRST YEAR phenomenal magazine WORKOUT RATE pRINcIpAl INVESTMENT YIElD featuring TOP WRITE-OFF leaders in the real estate National Note Group 2013 Record of Success investing industry. Publisher Linda Pliagas with Now that we have your attention, isn’t it time you renowned educator Larry Goins. I’ve traveled partnered with National Note Group and invested in this to numerous to do it, how to manage alternative asset class, earning double-digit returns, while cities through- it, and how to grow it... providing stabilization and diversification to your investment out the past without over-leveraging portfolio in the fast growing Mortgage Note Market. few years to and putting too much at host events risk. One of the ways we NNG DE LLC 1 is a private fund, which was launched by in person to want to help you is by National Note Group in March 2013 with the sole purpose promote our offering you the resources to focus on investments in second lien mortgage notes. publications, and information you need. The Fund is registered as a private placement under Sec including: Las Vegas, San For this issue, we have 506 Reg D., and is incorporated in Delaware. The fund was Jose, San Diego, San Fran- selected timely topics and created to provide accredited investors with the opportunity cisco, Stockton, New York interviewed top sources to purchase shares that represent a proportionate undivided City, Seattle, Phoenix, who can make the greatest interest in a portfolio of re-performing and non-performing Kansas City, Indianapolis, impact in your business. Salt Lake City, and Atlanta. It’s our mission to assist second lien mortgages. NCaNllGtoDdaEy LtoLCget1started. It’s exciting to meet and you on your path as you 50 Loans closed in 2013 mingle with sophisticated explore the world of real investors who are creating estate investing. Most like- 12% Successful wealth for themselves and ly, we are visiting a city 22% WoSrukcocuetssful their loved ones. near you soon, and I hope you can network with us Workouts My passion for real in person. estate has been long-stand- Short Sale & ing: I recall so vividly Enjoy our new issue, DeSehdoirnt LSiaelue & entering class to my first and be sure to keep up to real estate course at Santa date with our travel sched- Deed in Lieu Monica College. I was in ule by visiting us online at: my early 20s and wasn’t Foreclosures yet a homeowner, but http://Realty411guide. I was already planning com/events Foreclosures my financial future. It all starts with desire, follow it Stay focused on your NNG DE LLC 1 with education, and keep persisting... and growing. Linda Pliagasjourney, and God Bless. 1.888.604.3353 I urge you to spend quality 1135 Clifton Avenue, Suite 204 time each day reading and learning. It will really Clifton, New Jersey 07013 make a big difference in www.NationalNoteGroup.com your life. PAGE 11 • 2014 reWEALTHmag.com Building a portfolio of passive income properties is a big responsibility. You have to learn how Realty411Guide.com

from Jason Hartman’s to be objective. The prettiest property decisions can end up paying more or Financial Freedom Report in town doesn’t mean much if it costs getting less. too much and can’t generate income here are plenty of times from rents. Investors need to consider Cash Flow when the heart, not the cold hard facts and figures — a process head, governs deci- that Jason Hartman sums up as Three Not much else matters if the property sion-making. We buy a car Dimensional Real Estate Investing. doesn’t produce the desired income.because it fits the image we want to Calculating the Rent to Value ratio andshow the world, choose clothes that Those three dimensions allow an other factors gives a clear picture of themake us feel good. But while emo- investor to take a clear look at the cash flow potential of a given prop-tions have their place in the choices key parameters that indicate investing erty – and those figures need to guidewe make, successful investing re- success: decisions.quires decision-making that’s objec-tive, not subjective. Price In other aspects of investing, too, the head has to prevail over the heart. Emotions can enter into this aspect Choosing advisers not for expertise, of buying a property, too — it’s easy to but for personality, or skimping on jump at a property just because it looks learning about the investing process like a bargain, or sellers say it won’t because it’s boring, won’t get an in- Subjective last long. Those kinds of feelings can vestor very far on the road to buildingdecision-mak- make price the sole determining factor wealth.ing is the kind of whether a property makes sense. Butthat’s ruled by the objective investor also considers: How to keep decisions objective —feelings rather and put those pesky feelings in theirthan facts and figures. And there’s a Financing place? The key, say life coaches andplace for that in real estate too. When financial experts, lies in mindfulness:you’re choosing a place to make your Again, emotions ranging from com- pay attention to how you’re feelinghome for at least a few years, your fort (there’s an easy way to handle the and what seems to be pulling you to orfeelings can — and maybe should process with friendly lenders) to fear away from a given option. Have clear– play a pretty big role. If price and and aversion can overrule more im- goals, too, and know what steps youother “objective” considerations are portant factors such as what terms and need to take to achieve them – a way toequal, choosing a house that reminds rates work best for individual investing keep the head, not the heart, firmly inyou of your childhood home may goals. Investors making impulsive control of your investing success. vmake sense. But when it comes to investmentproperties bought with the intent togenerate income, decision-making hasRealty411Guide.com PAGE 12 • 2014 reWEALTHmag.com

hen you purchase Jason Hartman’saproperty,there are two compo- nent parts. There is the improvement and there is the land. It is important to un- derstand what influences the cost of improvement (the structure) increments. We’re looking at a lifetime here. The big trends are sitting on the land. Environmentalism bigger then “copper went up this week or down this week” and and building restrictions certainly pay they’re more important. The big trend is massive consumption and a role. an ever growing world population that is moving toward prosperity. And a more prosperous life means an increase in consumption. So, though perhaps wealth has decreased in the short term, they’re more prosperous than they were 10 years ago. When we look from a longer perspective, the global economy is booming. Raw materi- als cost.Copyright: iqoncept / 123RF Stock Photo In 2004, the government said that the rate of inflation was 3.3 percent. That same year, iron and steel prices went up 34 percent, roughly 10 times the official inflation number. Lumber was up 17 percent, Wallboard 20 percent. Labor and energy costs have fluctuated and oil will go up — you can’t stop population-induced consumption. There’s an old joke that asks what If you can get a copy of a tax bill, take a look at the tax assessor’s you call a developer. (Someone divided up cost and value of the land and the value of the improve- who wants to build a house in ments or buildings that sit on the land—there’s money in improve- the woods or at the beach.) What ment. Put your money in the sticks, the bricks, the bank. v do you call an environmentalist? (Someone who already has a house Jason Hartman has been involved in several in the woods or at the beach.) The thousand real estate transactions and has owned environmental movement increases income properties in 11 states and 17 cities. the value of land because it makes His company, Platinum Properties Investor it more difficult for others to build Network, Inc. helps people achieve The Ameri- after you, and your land is already can Dream of financial freedom by purchasing entitled and improved. income property in prudent markets nationwide. You might be hearing about things Jason’s Complete Solution for Real Estate In- on the news that will lead you to vestors™ is a comprehensive system providing believe that your best investment real estate investors with education, research, is not in the sticks and bricks of resources and technology to deal with all areas a house. They’re wrong — it’s of their income property investment needs. important to understand that com- Contact Jason at www.JasonHartman.com or modities ebb and flow in the short 714-820-4200. term. Life isn’t lived in six-month Realty411Guide.com PAGE 13 • 2014 reWEALTHmag.com

NHeoxwt RteonCtahloInovseestYmoeunrtTips from Pam Blancofrom PamTexas.comReal estate investing is a ing area, you may have a harder the majority of the homes are well challenging endeavor. time renting the property out and maintained, in good shape, and accu- Not only should you pick that should go into your calcula- rately valued. If you’re the nicest home a property that has strong tions for your ROI worksheet. in the neighborhood, you may findfinancials or potential for ROI, but yourself having a hard time renting oryou should also select a property 3. Close proximity to employ- selling the property.based on how it will perform as a ment and shopping. Conve-rental property. nience is key for rental properties. While demand may be high We’ve compiled some things currently for rental properties,to look for when selecting a good there are still enough options onproperty: the market for tenants to pick a place that is more convenient and1. Strong Market values. If you’re better proximity to amenities. Ifplanning on holding your property the property is hard to get to or into collect rental income, you need an out of the way location, you’llto make sure that the property value need to make sure you account forwill continue to appreciate. Selecting this in your marketing plan.a property in an area with strong val-ues, coupled with a healthy demand, 4. Number of rentals in the area.will insure that your property will It’s important to not have a lot ofmaintain its investment value.Large amounts of rental properties can also affect home values if other rental properties are not maintained to the standards that you maintain your properties.2. Good Schools. Never underes- rentals in the area because you will 6. Location, Location, Location!timate the power of good schools. have to compete with other landlords Ensure the property does not back upEven though you will likely never and you don’t want to get in a pricing to major roads or anything that coulduse the property, you will need to get war because at that point no one wins. potentially cause values to decrease.into the mind of your renters. If your Large amounts of rental properties Stepping back from the property andhouse is family friendly, you’ll want can also affect home values if other reviewing the surrounding area withto know what the schools are like in rental properties are not maintained to a critical eye will be important to thethe area. If the schools are top per- the standards that you maintain your success of your property. Consideringforming schools, your property will properties. how the surroundings will affect yourhave an increased demand amongst tenants and their lifestyle will allowfamilies with school aged children. If 5. Overall condition of the neigh- you to determine if this property isthe property is in an under-perform- borhood. The neighborhood needs to reflect pride in ownership. This means Continued on pg. 107Realty411Guide.com PAGE 14 • 2014 reWEALTHmag.com





Kathy Fettke gives market updatetimely insight on thestate of the market.Headlines have been screaming about a slowdown in housing in early 2014. This fear is unwarranted, and simply a result of record-cold weather across the country that kept most people stuck indoors. Now that the country is thawed out, it’snot surprising that pending home sales jumped 6% in May- the highest in 4 years, according to the National Associa-tion of Realtors. Home sales historically pick up during the Spring, buthere are a few more reasons why we think we’ll see recordhomes sales in the next few months:• Hedge funds have turned from buying rental property to Just because sales are exploding in some markets, thisproviding financing, helping to open up the credit markets. doesn’t mean people are getting great deals. In fact, 35 out• Lending guidelines are loosing up and allowing lower of 100 major U.S. markets are already back to 2006 peakcredit scores. prices! How do you know if you’re in a bubble market?• Interest rates are still historically low.• More inventory is hitting the market as Spring is histori- By looking at affordability levels. Is the average homecally a good time to sell (this can create more sales because price more than 3 or 4 times the average income?there’s more to sell).• In May, the U.S. officially recovered all the jobs that were Are there more housing permits being issued than new joblost in the Great Recession. creation?• Wall Street “Refugees” fear the stock market has peaked,and are finding real estate to be a more stable investment. Is the population growing or shrinking?• Investors from all over the world have found US propertyto be a safe haven for their money. As a result, cash buyers Our Advice:have made up 50% of home purchases over the past 5years! Don’t get caught in the frenzy. When there is limited in- ventory, buyers often fear there will be nothing left for them. All this demand will affect inventory levels, which That’s why they make frantic offers well over asking price.means we should expect home prices to continue to risethis summer. There is no need to fret. While there will certainly be less REO inventory, other inventory will be coming on the mar- Keep in mind: ket in the next few years from: There is an estimated 3-5 million people who moved in • Approximately 10 million defaulted notes that were notwith family and friends during the Great Recession who are foreclosed upon, but rather sold as notes to large institution-ready to move back out. The U.S. population is growing at al companies. These will eventually make it to the market,4.5 million per year. albeit likely as rentals at the outset. • As prices rise, fewer borrowers will be “underwater” and Builders came to a near stop for six years and are still can put their homes on the market.playing catch up...Warning! • As prices rise, builders will be able to make a profit and will be back in business. While some markets are on fire, it’s important to remem-ber that there is no such thing as a “U.S. housing market,” Continued on pg. 112but rather thousands of micro-markets all operating atvarious levels of peaks and valleys.Realty411Guide.com PAGE 17 • 2014 reWEALTHmag.com

strategy Key Concepts and Tips for IRA Real Estate Investing by Clay Malcolm the account holder, but that IRA is limited your account at a provider that handles real in how much financial contact it can have estate assets. How do Real Estate IRAs help real with the IRA holder’s personal finances. estate Investors? An IRA can use an LLC or entity, but it Contribution and Distribution rules for is not required. An IRA can have direct Retirement savings that are in IRAs self-directed IRAs that hold real estate ownership in a real estate asset and/or in can be active in real estate investing. assets are the same as IRAs that hold an LLC. TIP: Utilizing an LLC in conjunc- If you have expertise in real estate, you can put that knowledge to work for your retirement funds. Many in- vestors have their IRA or old 401(k) “on the sidelines” because they are not comfortable with the erratic per- formance of publicly traded securities like stocks and mutual funds. Com- panies like New Direction IRA, Inc. that specialize in self-directed IRAs that can be invested in real estate assets offer the investor an asset class that they know and understand. Knowing that IRAs can invest in all stocks and bonds. Keep in mind that dis- tion with your IRA is a decision that the kinds of real estate-based “alterna- tributions can be taken in-kind as well as account holder makes. tive” assets can benefit the real estate in cash. This means that an IRA holder is investor in 2 primary ways: 1) Invest not required to liquidate real estate assets An IRA (or other account type) can: your retirement account into real es- and distribute cash to themselves; they tate assets. This takes full advantage can simply distribute the actual real estate. An IRA can purchase a piece of real estate of the tax advantages of the account TIP: Consider your desired distribution and then receive all the income generated type as well as your real estate exper- plan can have an impact on which invest- by that property via rent and/or profit from tise. 2) Use other investors’ IRAs to ments you make. selling it. And whether it is rental income fund your personal real estate deals. or proceeds from a sale, the returns stay You can raise money for your deals tax advantaged according to the account by informing investors that their IRA type. The IRA holder decides what to do can put money into your project. with the incoming cash: buy another asset, Core Concepts An IRA is its own legal and financial Traditional IRAs, Roth IRAs, HSAs, SEP entity and it is separate from your IRAs, SIMPLE IRAs, and 401(k)s are all personal finances. It has its own account types that can acquire real estate titling which must be used on all as an investment. TIP: The key to this legal documents. When an IRA buys ability to purchase real estate is having an asset, it pays for the purchase and maintenance expenses and receives all the revenues. TIP: A self-directed IRA is guided by Continued on pg. 109 Realty411Guide.com PAGE 18 • 2014 reWEALTHmag.com

• Residential • Commercial • Fix and Flip• Raw Land • Agriculture • Fix and Hold• Auctions • Options • Trust Deeds• Leveraged • Short Sales • Mineral RightsPut your Real Estate Expertise to work for your IRATraditional, Roth, SEP, SIMPLE, HSA, Individual 401(k)Open an Account View Educational IRA Online Videos Schedule a Download our RealFree Consultation Estate IRA Info Packet Free Online Bill Pay Personalized Customer ServiceOnline account access with myDirection®www.NewDirectionIRA.com • 1-877-742-1270 • [email protected] • 1070 W Century Dr, Ste 101 Louisville, CO 80027

Invest AmericaSturdy, Stable, PersonalizedWhen it comes to a turnkey rental, investors oftenget offered a one-size-fits-allapproach. Yet, not all inves-tors want the same thing. Sure, some of us want cashflow. Others want Article by Hannah Ash | Look for Ben Walls andto establish trusts for future generations to en- Lorne Shive on the cover of REI Wealth Monthly:joy. Others may be want yachts. When it comesto investing with Invest America, alongside http://REIWealthmag.cominvesting pros Ben Walls and Lorne Shive,you can expect a personalized approach with Since then, Ben’s investment philosophy hasn’tyour end goals in mind. “What is it you want?” geared much off course — although, of course, it’sThat’s the first question Ben asks prospective grown up in a big way. Ben Walls is one of thoseclients hoping to build their future (and their rare breeds of investors who just gets the funda-portfolio). And then he and partner Lorne dili- mentals of investing — and abides by them. Theregently work with them to achieve those goals. is a right and a wrong way to build walls and to Ben learned the value of a dollar at a young approach construction. Ben Walls, true to his name,age: very young. He tells me how he found op- understands and he does things the right way.portunity in — of all places — wholesale clubssuch as BJ’s and Costco. “I’d saved enough As with his childhood business of selling candy,money to buy a case of Butterfingers at Costco his deals are still pretty sweet for anyone who buysand my parents chuckled and went along with with him. Why? He buys low, he employs the bestmy ‘master plan’,” he explains. What would contractors, he watches every dollar and he safe-he do with all those candy bars? Sell them, of guards his buyers’ investments with the watchfulcourse! “I sold them at school and around theneighborhood for 25 cents less than what theycost at the store, and I was still making 50 centsa pop.” His pitch was simple, “I sell for less and Ibring it to you.” How’s that for a competitiveadvantage? It wasn’t long before he was eatingcandy for free, making a profit, and had diver-sified his portfolio into Snickers, Reese’s Cups,and Skittles: “This was right when Skittlesstarted coming out with their different flavors…and people paid full retail price for those.”Realty411Guide.com PAGE 20 • 2014 reWEALTHmag.com

If you want to make your portfolio soar without losing thatall-important personal touch, Invest America is well-equipped to handle your needs with great expertise and care.eye of a hawk. He is committed to delivering results more than happy to answer any and all ques-— and Invest America’s loyal following of inves- tions. They offer a rare service in the investingtors is proof of that dogged commitment he clearly world — one akin to Nordstrom’s philosophydisplays. of extreme customer care. While Walls works hard to expertly build the Though they offer turnkey real estate thatbusiness and expand it, Invest America was founded delivers proven turnkey profits, Invest Ameri-by Lorne Shive, a man whose passion about real ca is unique in that they most certainly do notestate simply can’t be contained on a single page (or offer a turnkey approach to investors. Whenperhaps, even, in a book). According to Shive, “I it comes to lending, they also don’t take aeat, sleep, and breathe real estate… it’s my passion!” one-size-fits-all approach to the investors withProperty values may rise and fall, he notes, but still, whom they work. They realize that not everyShive asserts, real estate is a investor fits in the same category and theysound investment. don’t mind; Shive and Walls believe in the quality, and the cash flow their properties can With 15 years experienceand a strong desire to create garner and as a result are able to get cre-financial freedom through real ative to make deals happen for motivatedestate for himself and others, investors. Despite the Ma and Pop feel,Shive Invest America is as professional as it gets. Closings take be-takes what tween two to six weeks and are handled with the expertise thathe does very se- can only result from a multi- tude of years in the industry.riously. He knows all aspects Invest America investors are presented with detailedaspects of the business — from construction to software that walks them through all possible trans-lending, and he knows them well. Invest America is action scenarios allowing them decide which is best for themselvesa full-service operation that covers everything from (and their budget). Closings are handled pro-finding the best properties, to purchase contracts, all fessionally, speedily and with the thought and care only a personalized service such as Investof the often cumbersome details of closing - plus full America offers.property management to include renovations, rehab, In a world full of one-method-fits-all investing, what Ben and Lorne are doing isbasic care, tenant placement and rent collection. truly unique. They have a small, loyal base of Images: from 123RF clients - and they plan to keep it that way. AfterThough it may seem like Invest America is a speaking at length with both men, the words refreshing and reassuring come to mind. Ifone-stop-shop-all (and it is) - it’s the one-stop-shop you want to make your portfolio soar without losing that all-important personal touch, Investmeets the general store of years past. It’s the kind of America is well-equipped to handle your needs with great expertise and care. vfirm, or place, where you can get whatever it is that For information, visit http://InvestAmerica.coyou are looking for - whether it’s a hammer or finecheese, and leave happy. If you have questions abouta product, before or after purchase, Invest America isRealty411Guide.com PAGE 21 • 2014 reWEALTHmag.com



CROWDFUNDING strategyReal estate crowdfunding has been money world. With Realty Mogul, once Jilliene Helmangrowing in popularity in recent a borrower accepts an LOI and providesmonths, and Realty Mogul has been a $199 application fee, a confirmatory Jilliene is the CEO and Co-Founderat the forefront -- crowdfunding broker price opinion (BPO) is ordered of Realty Mogul responsible for stra-properties ranging from multi-fam- (usually received within three to five tegic direction and operations. Jillieneily apartment complexes and office days). Once approved, most transactions has underwritten over $5 billion ofbuildings to the Hard Rock Hotel in are promptly funded by the “crowd,” often real estate and was previously a VicePalm Springs. Most people think of within a day or two. President at Union Bank, where sheequity investments when they hear of spent time in Wealth Management, Fi-crowdfunding, but borrowers can also How are rates determined nance and Risk Management.  Jillienebenefit from “crowdlending.” Realty for crowdfunding loans? is a Certified Wealth Strategist®,Mogul provides investor rehab loans Local hard money lender rates are often holds Series 63 and Series 7 licensesto borrowers, leveraging its nationwide subject to dramatic change depending and has a degree in Business fromnetwork of lenders and its pre-estab- on their supply of funds – which often Georgetown University. lished loan criteria to deliver fast fund- derives from friends, family, and othering solutions. If you’re interested in local investors. Crowdlending compa- ABOUT REALTY MOGULcrowdfunding an investor rehab loan, nies with a broad investor base are ablehere are five things you need to know. to operate more consistently, focusing on Realty Mogul provides accredited more straightforward lending criteria such investors with a trusted marketplace How can I crowdfund a as a borrower’s rehab experience and the in which they can invest in real estate rehab loan? property’s regional market. Realty Mogul transactions. Investors can provide operates nationally, with pre-established capital to fund either debt transac- Like traditional private money lend- lending criteria and pricing, customized tions (loans) or equity interests iners, crowdfunding site lenders qualify (among other things) by region and by a value-add real estate projects. Overborrowers based on various loan char- borrower’s rehab experience. 10,000 accredited investors acrossacteristics like loan size, property type, the country use the Realty Moguland region. A lender’s access to capital What types of loans does platform. “Accredited investors” arecan change periodically, however, and the crowd like to fund? defined as individuals with either ansmaller “hard money” lenders often run The broad supply of capital facilitated annual income exceeding $200,000out of capital, which can result in dra- by larger crowdlending companies can (or joint income with a spouse ex-matic changes in lending practices and often lead to lower interest-rate loans, ceeding $300,000) and/or a net worthlonger wait times to close transactions at least as compared to local lenders as exceeding $1 million, excluding theirwhile additional capital is being raised. these local lenders have a restricted capital primary residence. vLarger “crowdlenders,” like Realty Mo- supply that may require them to maximizegul, have thousands of investors across profits with each loan. Rehab financing is reWEALTHmag.comthe country and access to institutional traditionally collateral-based, but higherlenders, and are often able to provide caliber borrowers do offer greater appealborrowers with a faster, more consistent to an investor base.funding experience. How long does it take to What ARV (After-Repair-Value) close a rehab loan when and LTV (Loan-to-Value) ratios crowdfunding? do crowd funding sites use? The better crowdlending sites have The ultimate loan amount being offeredaccount executives (AEs) who work is key for borrowers, and smaller lendersfrom pre-established loan criteria. AEs with a squeezed capital supply may offerlike those at Realty Mogul are thus able changed terms just prior to closing a loan.to provide borrowers with a same-day Larger lenders can offer borrowers consis-“letter of intent” (LOI), instead of a bor- tently aggressive ARVs and LTVs, so thatrower having to wait for a “committee” borrowers can make purchase offers withapproval, which is typical in the hard confidence. vRealty411Guide.com PAGE 23 • 2014

Brad Sumrok on Investing in Multifamily Apartments for aSustainable, Early RetirementNational award- Article by Tim Houghten • Photographs of Brad Sumrok onwinning real estate location at his Multifamily Bootcamp in Dallas, Texas.investor, and mentor,Brad Sumrok was family apartment buildings. Brad says Busting the Myths aboutable to walk away “I teach three guiding rules for success- Multifamily Commercialfrom his six- figure fully investing to retire in 3 to 8 years.”corporate job in just These are: Property Investing3 years after invest-ing in apartments. 1. Invest for cash flow. BradSumrok.com, and its related edu- 2. Select investments with upside cation curriculum goes a long way inSo how did he do it? What busting the myths around commercial advantages can be found potential: i.e. capital gains, real estate investing. from investing in 5 plus unit and appreciation.multifamily commercial properties? 3. Harness the power of leverage. Many might be scared off by theWhat golden rules have helped Brad term ‘commercial’, or larger properties.scale to owning over 1,400 doors, In particular Brad, and his networkand what does a “Full Life” in of investor students focus on 5+ unit Kicking the misconceptions to theretirement mean to one of America’s multifamily commercial properties, with curb in a single sentence, the Dallas-leading real estate minds? individual apartment buildings ranging based real estate investor says, “In 10 up to as many as 300 units. years of acquiring over 1,400 units, I’ve Why Multifamily? had one single family rental property. Sumrok points to this sector, coupled That one single family residential rentalWith so much buzz and interest in with his proven acquisition criteria, as was more work, and harder to managesingle family rental properties re- being ideal for delivering “double digit than all of the others put together.”cently, why invest in multifamily? cash on cash returns, and doubling yourPut simply, Brad says, “It works and money in 5 years or less.” Some investors have been battlingjust about anyone can do it.” each other over single family rentals In an exclusive interview, BradSumrok elaborated that multifamilyincome property investing worksin all market cycles, anywhere inthe United States, with the propereducation and strategies. The mentor’s proven system forlong-term investing enabled him toretire in just three years with multi-Realty411Guide.com PAGE 24 • 2014 reWEALTHmag.com

in insane bidding wars, and even on costs are less than the national medi- invest in multifamily properties, andnegative cash flowing properties. From an. his passion, which is teaching, mento-easier access to leverage, to simplified ring and helping others achieve similarproperty management, and strong cash The Key to Retiring results as he was able to achieve..flow potential, Brad Sumrok’s students Early?have been finding this niche highly We had to ask - why on earth wouldprofitable, and a great way to progress The Definition of Retirement, a highly successful investor, who couldtowards their financial and life goals. according to Sumrok: “When invest- afford to retire to golf and the poolside ment income meets or exceeds living continue to entertain speaking engage- Brad comments “I’d never buy expenses.” This is when individuals are ments, and offer coaching to others?property with negative cash flow projec- able to realize real freedom and live lifetions,” adding “It’s just crazy!” on their own terms. Some may choose The answer, “I’ll never forget the to continue to pursue their careers, but incredible feeling of being able to walk On Selecting the Best at least at this point it is out of choice, away from my job.” Real Estate Markets not necessity. Everyone has different lifestyle demands, and enters from a Brad explains that after 17 years in to Invest in… different starting point. Still using this corporate America, he simply wasn’t system retirement should be achievable happy trading his time, and sacrificing The bulk of Brad’s real estate empire in 3 to 8 years for those who learn and real life for a paycheck. This coupledhas been built in Texas, however he is implement Sumrok’s simple, proven with the increasing lack of job securityexpanding to other markets with his processes. and being fired and laid off once (whichmost recent acquisition being in Colora- we can all relate to), spurred him todo. However, rather than simply being What “Retirement” Looks invest in cash flow real estate. However,bullish on a single geographic area, or Like for Brad Sumrok it was the amazing feeling of freedominsisting out of area investors flock to and fulfillment that has inspired, and fu-these markets, Brad offers 4 criteria for In a phone interview, Sumrok who eled Brad Sumrok’s passion for helpingevaluating the best locations at any time. just happened to be vacationing in the others to achieve the same. Northeast, painted a picture of his cur-1. Choose a landlord and business rent retirement as including; spending What’s Special aboutfriendly environment. 10-12 week year pursuing his passions Brad Sumrok’s Training?2. Look for current and projected for travel and visiting friends and fami-population growth. ly, spending time in the family’s second What makes this mentor stand out3. Select areas with current and home in Florida, continuing to actively from the ever swelling list of self-ap-strong economic growth forecasts. pointed real estate investing ‘gurus’ out4. Stick to markets where housing Continued on pg. 106

advice Image: maxxyustas / 123RF.comTips from the ProsSWtheavtetoBLigohokaufosr iDniascLuesnsdeers by Steve BighausAloan is a loan, right? Wrong. An investmentproperty loan comes witha different set of guidelinesand requirements than yourtypical owner-occupiedor even second hometransaction. So here are10 key things to look forin a lender.Experience – It is important to in the mortgage business? Someone Ask them questions about the “myths”interview your potential lender. who has been in the industry 10 or more you have heard in the mortgage years has truly weathered the storm. industry. Do they tell you that you Whether you have found someone What positions have they held? can only have up to four financedon your own or were referred to a properties? If they do, it is time tomortgage professional by a friend, This is more important than you may move on to a different lender.family or colleague, ask them realize, even if someone has been in thequestions. How long have they been industry for a long time what have they Specialty – Rental properties are done in it? If they have always been different. Sure, any lender can offer a loan officer, what is their production you a loan on them and chances are like? most loan officers have done at least one in their career, but is that their Knowledge – Going hand in focus? If you are looking to build your hand with experience what does your rental portfolio you want someone loan officer know? Ask them detailed that can work with you on your time questions about your situation and see schedule. Are you looking to buy one how they answer. Do they have an property a year or buy 10 properties in immediate answer for most of your the next couple of years? questions or do they need to research A loan officer that can help you and get back to you? Are you a first strategize is vital. They should be able time investor or buying your seventh to help position you and your finances property? What do they know about the at the pace that you can handle, not differences between financing one to necessarily what you want to handle. four properties vs. five to ten? Realty411Guide.com PAGE 26 • 2014 reWEALTHmag.com

The more properties you own the more serviced by the same company or will it Resources – A mortgagecomplicated it gets, so working with be sold off right away? If you don’t ask professional is worth their weight ifsomeone that specializes in investment any other questions about the company, they have resources. Do you needproperties and can help you goal set for ask this: Does your company sell a referral to a strong tax preparer,your individual situation is key. directly to Fannie Mae, Freddie Mac, or financial planner, or lawyer? Are Ask your lender what percentage of both? Why ask this? you starting out on your own andtheir business comes from investment Because Fannie Mae and Freddie need a referral on where or who toproperty loans. Mac are the two largest purchasers of buy an investment property from? You want someone whose business mortgages and they set the guidelines Your loan officer should be able tois at least 50% investment properties for the loans that you have to qualify give you names or point you in thehelping you out. for. If your lender’s company doesn’t right direction. However, if you sell directly to Fannie or Freddie that were referred to them by one of theirCommunication – This may seem means they have to sell their loans to partners, they aren’t going to bite thebasic, but you should be working with a correspondent lender who then sells hand that fed them, so don’t expectsomeone that will return your calls and loans to Fannie or Freddie. referrals to another competitor. That isyour emails. Regardless of how you If they sell their loans to a just sound business.came across someone, they should be correspondent lender you not onlygetting back to you within 24 hours. No have to qualify for Fannie or Freddie Pricing – Let’s face it, pricing,matter how much experience, how long guidelines you also have to qualify for the interest rate and fees that you pay,they have been in the mortgage field, any additional guidelines or restrictions are important, but it should not be thehow highly recommended they come, that the correspondent lender sets. only reason you choose a lender. Ifyou are their potential client, and you These extra guidelines are referred to the only strong point in your lendershould be treated like gold. as overlays. If you have ever heard that is that they can offer you a better rate“Ask your lender what percentage of their business comes frominvestment property loans. You want someone whose businessis at least 50% investment properties helping you out.”Availability – Going along with you can only have up to four financed or lower closing costs be aware thatcommunication, are they available to talk properties it is because of an overlay. you may run into pitfalls with yourwith you on the phone or do they only loan along the way. Be sure to askcommunicate via email? If your lender is Local underwriting – Does them some or all of the above points.on vacation or out of the office, do they your mortgage professional know their Saving money is important, but if yourhave an assistant or partner that you can underwriters? How many do they work loan doesn’t close on time or at all,talk with? Ask them if they work alone with? Ask them if your loan will be sent how much money are you saving?or if they have a partner or a team. Don’t to a giant pool to stand in line or if yourdiscount them if they do work alone, loan will be underwritten by someone Personality – While this isbut if you have an urgent question how they know. Why does this matter? not highly important, you should bewould they be able to handle it if they are able to get along well with the loanout of the office? Aren’t guidelines, guidelines? Yes, officer you work with. They should but the underwriters that review your fit you and your personality and meetCompany affiliated with - loan are human and just as your loan your overall expectations of a loanFind out who your mortgage officer officer has experience, it is important that professional. Ultimately you needworks for or with. Do they broker the underwriter also has experience in to be comfortable with who you aretheir loans, or do they work for a direct reviewing investment property loans. using. Make up your own questions tolender? Ask them questions about their help determine if they fit this factor. vcompany, how long has the company Does your lender have a goodbeen in business? What are their relationship with their underwriter? Ask To contact Steve Bighaus, please callfinancial strengths? Will your loan be your lender what their underwriting turn 206.930.1801 or email him at: times are like. Are loans underwritten in [email protected] 1-2 days or 1-2 weeks? reWEALTHmag.comRealty411Guide.com PAGE 27 • 2014

Employing what can best be described as “auto- mated real estate,” TKI perfected the formula for purchasing property, yielding maximum return on investments, and even the tenant-finding process.Missy McCall-Hammonds’ restored classic colonial home isjust one example of the success she has built with real estate.

Copyright: 1971yes / 123RF Stock Photo Missy McCall-Hammonds’ Great Glass Elevator How One Woman Flew Far Above the Corporate Glass Ceiling. For Missy McCall-Hammonds, the corporate fully rehabbed “rent-ready” properties to investors from world in which she worked didn’t just hinder all over the world - and she does it very well. women’s advancement with the proverbial glass ceiling -- it locked them in a “glass box” Among her many goals, she aims to raise the standards of investing and the transparency of what landlording is in as she succinctly put it. Rather than go on suffocating in terms of its visibility and professionalism. One way she career-stunting solitude, Missy thought differently and, is doing that is through her version of “Crazy Cash Flow” after graduating with what she playfully describes as her investing. Missy’s unique investment strategy allows “self-taught Ph.D.,” she left her corporate career behind buyers to own fully renovated rental property without and created an original, provocative, and quite frankly, the hassles and headaches. The investor is given a one ingenious business concept: boil property acquisition and year warranty against property vacancies and all of the landlording down to a science to yield maximum return big ticket maintenance items that can impact the bottom on investments. Missy specializes in true turnkey invest- line. This strategy appeals to out-of-state and overseas ment - and specialization is an understatement! Missy investors, as financial risks are minimized. While this is McCall-Hammonds buys, sells, and manages hundreds of a somewhat oversimplified explanation of what Missy Realty411Guide.com > PAGE 29 • 2014 reWEALTHmag.com

does, it’s obvious that she is not your average real estate out. The locks are never changed, the lock box is empty, butinvestor, but rather a shot of adrenaline in a challenging, the tenant avoiding collection calls doesn’t know that!slowly recovering market. Combined with the exceptional systematic approach to landlording, buying and selling properties, and managingBorn and raised in Cincinnati, Ohio, Missy over 700 rental units, Missy McCall-Hammonds is also focuses on properties in her home area: author of Landlording Without Losing Your Mind and The Butler County, Ohio, and close surrounding Ultimate Business Guide for Real Estate Entrepreneurs communities. Her target market is strategi-cally located between the two large cities of Cincinnati (with Vena Jones-Cox). It makes sense that Missy is alsoand Dayton. When asked about her choice to invest right a highly sought after public speaker at conferences andwhere she lives, she said the numbers make great sense investment property showcases. For Missy, these speakingand then quoted Mark Twain, saying “when the end of engagements offer her additional platforms for her goalthe world comes, I want to be in Cincinnati because it’s of raising the standards of turnkey investing and teachingalways twenty years behind the times.” landlording professionalism. Her success in such endeavorsThe joke here, obviously, is that Missy and her can be traced to her commitment to honesty and transpar-version of investing are anything but behind the times. ency. McCall-Hammonds’ strong work ethic, reflected inBoring but brilliant, low-hassle real estate is her aim. her writing and speeches, has helped cultivate relationshipsShe believes exciting real estate markets can be costly. with long-distance investors. She is able to share with themEmploying what can best be described as “automated the ability to create positive cash flow and avoid the typicalreal estate,” she has perfected the formula for purchas- costs of rental properties, such as vacancies, maintenance,ing property, yielding maximum return on investments, and management fees, all of which equates to worry-freeand even the tenant-finding process. One of her web- rental property ownership..sites, www.RetireWithRealEstate.biz, offers access toMissy’s latest offerings — complete with a “Crazy Cash One big question remains, of course: crunchingSheet” that presents the numbers in a straightforward actual numbers. How much money is at stakemanor, just the way Missy believes investing should be. here? How much does it take, on average, to buy into Butler County, Ohio? According toNo mysteries or hidden costs. This brand of upfront, McCall-Hammonds, the average property purchase price ishonest, low-risk investment is a defining characteristic $120k, while the average monthly rental income is $1200.of Missy’s strategy and has helped forge strong relation- Fannie Mae financing is available to maximize leverage.ships with all of her investors. Compared to similar areas, these numbers are quite im-Another example of this visionary’s brilliance? When pressive and show the relative stability and affordability ofit comes time to fill properties with qualified tenants, Ohio’s housing market.Missy once again turns to automation by using lock box- Like a modern-day Willy Wonka who saw a glass box ines to show properties. This practice allows both landlord the corporate world, Missy McCall-Hammonds fused inven-and tenant to avoid “feelings over facts,” as prospec- tive thinking with a quality product and skyrocketed abovetive tenants can inspect the property on their own, and the rest in an epic fashion. By designing her own glasslandlords pick tenants strictly on unbiased data, such as box with inspiring and innovative methods, she didn’t justemployment, rental history and income, rather than on break the glass ceiling, but shattered it and in the processtheir personal impressions. This also avoids the possibil- has rocketed herself and her investors sideways, slantways,ity of discrimination. She also found another ingenious long ways, and any other ways you can think of to take theuse for the lockbox, Missy has found that placing empty lead in today’s market. Missy is a true visionary in the reallock boxes on the doors of tenants with delinquent rent estate world, helping secure financial success and freedombalances helps to kick start communication and avoid for those savvy and willing enough to utilize the wealth andthe dreaded phone dodge game — tenants are quick to information that she so generously shares. vcontact landlords when there’s a fear of being locked ~ Article by Hannah AshRealty411Guide.com PAGE 30 • 2014 reWEALTHmag.com

Missy McCall Hammonds shares a cuddle >with her favorite pooch, Thelma Lou.

Sensei’s Clan of CashFlowReal Estate Investors TakeOver Cleveland!Why my clan of Remote Rehabbers are bullish on Cleveland, OH, and you should be too… Black Belt Investors’ Remote Rehabs investors are taking over cash flow real estate in Cleveland’s re-bounding suburbs. So what has become so magnetic about this city,how are investors gaining the edge with Remote Rehabs, and whattypes of deals and performance can be expected?This is the New ClevelandThe buzz around Cleveland, Ohio’s major revitalizationhas been steadily building. Cleveland may never drawthe media attention of NYC, San Fran, Vegas or SouthBeach, but this is also allowing forward thinking (andacting) real estate investors to lock in substantial cashflows, returns, wealth building, and security, with ninjalike precision. There has been significant speculation about newmigration trends in real estate circles and publications.So far, much of it has been assumptions and indicatorswithout proof. Now these trends in urban renewal,with both young professional Millennials and Boom-ers converging on new downtown areas is being seenon the streets of Cleveland.Hipster Haven, with Real Nuts, Bolts and a DefibrillatorOkay, Cleveland may not be a ‘Hipster Haven’ in thevein of Miami’s Wynwood Art District, or San Fran-cisco’s Bay Area and Mid-Market, but it is drawing astrong crowd of in-migrating highly educated youngprofessional workers and Boomers. The city is currently undergoing $2B in visitor relat-ed infrastructure alone. Local technology executives areworking on an innovative cable car system which will connectattractions and outliers to the city’s core. The Case WesternReserve University School brings a strong legal community tothe area, making Cleveland a power address for new firms. This new live, work, play arena is all anchored by the famousCleveland Clinic, augmented by the new Cleveland MedicalRealty411Guide.com PAGE 32 • 2014

Mart and Convention Center. Those investing under our Remote RehabsSM program are Young doctors are moving in to bulk up the workforce seeing cash-on-cash returns in the region of 15%. and economy, while aging Boomers are finding this a top The tremendous velocity recent revitalization activity notch location for easy access to quality medical care, over the last 12 months has put behind this Ohio market with affordable property prices packing a serious punch has turned even the most conservative, bullish on the when it comes to downsizing and getting more house for outlook for home price appreciation. their money. Obviously, investing in real estate on speculation of fu- A County Invested in Sustainable ture value alone may not be the best strategy, or necessary Real Estate Growth in the current market, but it is a nice bonus, when coupled with steady cash flow. Even if rental properties here just Cuyahoga County has committed itself to sustainable bounce back from around $50K today, to their previous real estate growth, preserving values, and quality housing. highs of around $110K; that means doubling wealth. This It is achieving this through its P.O.S. system, and checks opportunity is like winding back the clock to invest in dis- and balances. This makes it a unique market which offers counted California real estate in 2010. superior protection for buy and hold real estate investors. Remote RehabsSM What to Invest in Now Back in the year 2000 I created Remote RehabsSM as a Cleveland has the green-light. However, contrary to the completely turn-key system, specifically to empower real misconception many have of investing in Cleveland as a estate investors to take advantage of well-timed opportu- rundown warzone, I’m investing in cash flowing rentals in nities like this, which often require out-of-area investing. suburban neighborhoods where you would not only want to live, but would raise a family. Remote RehabsSM provides a comprehensive A-Z system for acquiring, rehabbing, leasing, and effectively Some of the specific areas being focused on now managing rental properties from a distance. include; Euclid & South Euclid, Garfield Heights, and University Heights. Unique advantages of the Remote Re- habsSM program in Cleveland include: 4 Reasons to Invest • Done for you sourcing, remodeling, leasing, In CLEVELAND, OHIO: • Low Acquisition Costs management • Cash Flow • No property management fees for the 1st year, followed • Tax Benefits • Lots of Appreciation Potential by a low flat fee • 90 Day Rental Guarantee ensuring cash flow and returns Black Belt Investors sees greater Cleveland currently • Includes 1 Year Contractors Guarantee for all repairs offering many incredibly attractive acquisition opportuni- ties. Homes in this area are generally currently selling for To find out more about Remote RehabsSM, new Cleveland around $50,000. With rents on these homes in the neigh- developments, and discover discounted cash flow prop- borhood of $1,000 a unit, the cash flow is substantial. erties around the nation visit http://www.RemoteRehabs. com or simply call Black Belt Investors at 951.280.1900. Find out more about Sensei Gilliland, Remote RehabsSM, and request your free copy of Black Belt Investors’ Cash and Wealth Report online at: www.BlackBeltInvestors.comCopyright: rudi1976 / 123RF Stock Photo

of the Best MetrosTo by Tom Wilson Are there m don’t recommend being a have weathered real estate investor…un- turn well, are less you have a well-de- many of the above, and hav FLIPIORfined strategy, quantitativeNOT TO FLIP?goals and are dedicated to go by tively calmer w the numbers and not by unsup- Tom Wilson ing these past f ported advice or emotions. years? My engineering training and 30 years of experience manag- Indeed, my ing high tech profit centers in in more than transactions ov Silicon Valley taught me how to analyze for has revealed that Dallas / Fort W by Tom K. Wilson the best return on investment in any mar- of the best real estate investm have done flips for akloent.g time. Many more encouraging newcomeirns ttohethUisndirtaemd aStitcates; that is wWow, flipping surely seems jumped on the 2000 to T20o0d7ayb,otohme ,parnindcaipsles ocfotatnagaleyisnisdursetmryation biditofoohr imghoisnt of my personal po exciting on “reality” TV. we know, many caugthtethsaemfael.linAgnkynoinfe can ddoeistp, ehroawtioenvetor, goentea protedrumcthaonlditnhgesn. Actually, it is exciting in real when the Greater FoonleeMdosdteol cboellvaeprsyeddinsciplicnoeudntanond tehdeumcaatrekdet beTinhge hsitgrehnergtwhhseonf Dallas / Ft. Wlife too. However, the flat screen about the submarkets and products,thoeryrisdeell. D•aBnguesirnoeusssonanbdothfinancial capdoesn’t reveal the high risk, hard the coattails of someone who is. counts. TheSsouuptphl.y-demandwork, and stress. Flipping is Flipping Do’s TheFplriimpapryinpagraDmoetenrs’tfosr selectiimngbatlhaence i•sTbheettherigahtehsitgrheenrt per investedprimarily a U.S. term (most often best •inFvoellsotmw ethnet mhearrdk;ets are: prices wherme athjoeryeacroenooumt ic center in the Unapplied to real estate, although it • Get experiencedcan be any asset) that defines a partners and consultants•Rentintostpeuardchfiansdeaprniicceheratio of spec for ahnedgtehefruenfdosrea,ntdhe highest cashpurchase below market with theintent of selling (with our without • Buy in high-demand areas•Pop•uBlautiyotnhegrmowostht eaxnpdeinnswivaerd migrthateiobnarrier t•oOennetroyfisthheiglhoewr,est risk and safadding value) at a higher price. • Focus; narrow down •Emplhooyumseenotngtrhoewbthloacnkd business cbluimt yaoteu takienotnhemUorneitreidskStates for real estIt is especially popular when area and type of flip •Hou•sOinvgerafIfmoprdroavbeiliftoyr the and capital •rLeqouwireesmt denectsl.inIfe housing pricemarkets are dynamic and moneyis cheap. • Line up lenders before •Locantieoinghborhood you still watnhtetonelnyteUr Sthissingle digit deprec There were over 33,000 flipsin the U.S. and 2,000 in the San looking for your deal •Cos•tAonf alilyvzinegsales comps business indroustry, at least I • Set deadlines, rewards, &•Rentawlitmhoaurkt eetxpert help want you to•Fgouirnttholiatrwgeitsht and one of the fa penalties for performance•Cur•reUnntdaenrdesptrimojaetceterdehmaabrket condiytoiounrseyes oipnegn.MSAs (Metropolitan Stati • Focus on non-listed Nowcosthtsat speculative investing forTfhaestgoalinistthoemUankieted States. ProjectedFrancisco Bay Area in 2013. properties with less profi•t Kheaespgnoonne-ptheerfowrmayingof the lastmsauxpiemr-um pproopfiutlpaetiromn otont1h2 million by 203 buyer competition models,utbhse &wiassesioncviaestetosr is focused ownitchamshinim•uBmroraisdk-.bFasoerd economy that hasCritics often project that flipping • After a win, do your prep &flow•inBguays“skeitlslearnddeasalsf”einharbors. example, mtahkeinegm$p5lo0y,0m00ent rate growth ofis somehow unethical and demo on day 1 after COE weak resale areas on a $500,0S0t0atreessadlueringthtrheeepast decadefraudulent. Indeed, any potential • Over estimatefast profit business can bring out • Get fixed bids for resale price months in an $800,000 me- •Nsome bad elements, however, major work dian price neighborhood is buflippers provide a great benefit • Fall in love with a better than making $100,000 mato the marketplace by removing • Put more money in the prospective deal; be on a $1,000,000 resale in the Unblighted properties from com- front than the back prepared to walk same neighborhood in 12 •Nmunities, returning them to the months. You want to keep coowner and rental marketplace, • Minimize risk: permit • Make many changes your money moving. Don’t •Land increasing property values structural work, 1099s, after starting: they buy what looks like a killer Mand tax revenue to the communi- insure properly are costly deal in a low demand area poty. I am proud to be a flipper. only to find it takes you 8 qu Make no mistake, I am first a • Pay your GC directly; let • Count on market months to sell it after drop- calong term hold investor. Why? him pay the workers appreciation ping the price 3 times with exReal estate income properties two buyer fallouts (guess •S • Re-evaluate market • Have a failure and how I know that). ing before listing not learn from it • Stage your property • Feel invincible because you have a successprovide relatively passive income Know your market or get USand have appreciating income 2008. Now that many cities are hot again, someone who does. Critical analy- tunand asset values with inflation. Flipping we have a new wave of speculLataosrs Vweangtainsg Wsoisrosftthe sales comparisons on bDoathllas Bestis a business with very active participa- to jump on the bandwagon because flipping the purchase price and resale price istion and the highest tax bracket. How- sounds too easy. It isRneoaltty.411Guide.com mandatory. This is as much of an art aPsAGE 28 • 2012ever, it can produce short term income if Currently, cities popular with flippers have a science. Your resale price assessmentdone well. faced short supply and surging demand, has to be based on what the product A very small percentage of investors especially at median to lower price ranges, would appraise for with a FederallyRealty411Guide.com PAGE 34 • 2014 reWEALTHmag.com

backed loan, because like it or not, that is what Then if the market is higher when you sell, acknowledge your higher profit as anormally sets the market price. gift, not an entitlement and stroke of genius. Exceptions are in temporary hot markets Plan your improvements in proportion to the relative price of the neighbor-like Silicon Valley where multiple offers hood. Nice consistent finish with Home Depot stainless appliances and prefabare common and offers frequently ignore granite will be fine for median price houses and under. However, when youthe appraisals because of cash buyers and get to 1.5x median and higher, design is critical. In either case, 80% of buyersbuyers who make offers with make up their mind if they want the house by the timeno appraisal contingencies. The Silicon Valley Flip Example they get through the front door, so curb appeal andproblem is that when the market the feeling upon entry is king at any price. Put morestalls, which it will, flippers High-End High Added Value money in the front than in the back. I always wantwill find themselves chasing 1429 Bent Dr. Campbell, CA my product to be the best on the market in its class.the quickly falling prices like And if your agent tells you it is not necessary to stagerats jumping from a sinking 4 bed, 3 bath, 3000 Sq.Ft. because others don’t, say that’s perfect and that isship. The longer the project is, Addition: 1200 Sq.Ft. exactly why I am going to stage it. This is a high ROIthe higher the risk due to the Purchase Price: $550,000 item.increasing uncertainty of the Purchase Closing: $1,177future market. Resale Price: $1,625,000 Summary Make sure the deal makes Hold Time: 13 months Proceed cautiously and with expert partners,sense in the current market. Resale Closing: $87,893 coaches, and consultants. Narrow down what and > Rehab: $555,362 Debt Service: $108,511 Flip Example Soft Costs: $19,272 Operating Costs: $10,986 The example on this page was completed in Net Profit: $312,046 2013 in Campbell, Calif., in the heart of Silicon Valley in a neighborhood that had some recent sales that were three times higher than our purchase price, an exceptional opportunity indeed! I knew from 38 years of investing and from experiencing my fourth real estate cycle that I should not count on the appreciating market, and indeed it penciled out with a good profit with only a modest rehab, including up- grading a non-compliant wing addition. However, after significant analysis and consul- tation with my broker, architect and contractor, I decided to take a calculated risk and fully leverage the project with a major high end remodel, including scraping the non-compliant addition and constructing a new master suite wing. Larger permitted projects always carry more risks and this was no exception as we en- countered two contractor changes, permit challenges, and abuse of power from the city inspectors, resulting in some budget and schedule overruns. The good news is that the high quality product was a perfect match for the market and along with the leverage of the appreciating market the project yielded 19 per- cent of sales price profit, and 60 percent return on the working capital. v

where you want to focus. High End Flip Requirements celebrate with Copyright: pressmaster / 123RF Stock PhotoDon’t be in too big a hurry your workersor you will overpay. Know • Design as important as and team, andwhat your maximum price sq. ft. & neighborhood when it closes, FLIPPING LEVELSis before you offer and • Exceptional curb appeal celebratenegotiate. Don’t fall in again! Then • Wholesale withlove with it; be prepared Dramatic architecture take some of assignment contractto walk away if it doesn’t but not eccentric your profitspencil out. After you win, • Hire an architect and buy some • Wholesale with purchase & resaledo your homework, set • Open floor plan and long-term hold • Cosmetic added valuesubs in place, prep for per- great room properties Structural added valuemits and be ready to demo • Volume (cathedral and/or for inflation • Added value withon day one after COE. high ceilings) new addition Set artificial deadlines hedging assets,and/or give contractors • Totally updated; use a de- • Scraper with new buildincentive and penalty signer & pro-appliances for passive (Speculation home)clauses. Set high expecta- • High quality consistent income, and finish throughout for future early retirement. vtions and drive for closure.Use planning tools to Tom Wilsonmake sure no material or is a 37-yearsubsequence delays the project. Motivate real estate veteran who has executed overyour crew with compliments, buying $100M and 2,000 units of real estatelunches, bonuses; let them know that you investments. Wilson is also a weekly hostfeel that they are important, they are. Get of the Real Estate 360 Radio program onrid of non-performers. Re-evaluate your KDOW 1220 am every Wednesday at 2market carefully and set your specific pm. Listen to his podcasts on iTunes or hisstrategy when you list. website: http://tomwilsonproperties.comAnd when the project is complete,INVEST WITH CONFIDENCEINVEST WITH CONFIDENCEI MIMM ME DE DI AI ATTEE CC AASSHHF FL OL OW W DDiscover the lowest-risk, highest-quality residential investment properties in iscovuenrttrhye. lUowsiensgt-rsisokp, hhigishteicsat-tqeudalimtyerethsiodednotilaolginyv,etshtmeebnetsptroinpveertsietsminetnhteproperties carefcuolulyntsrey.leUcsitnegdsobpyhaisnticeaxtepdemrieetnhcoeddoloingvy,etshteobreasnt dinvreeshtmabebntepdrobpeeartuietsifaurlely to secure cbaeresftutlleynsaenletcst.edWbyitahnceoxmpeprieentecendt ipnvroesptoerrtayndmreahnaabgbeemd beenatu,taifnuldly itnossteacnutrecathseh flow, you biinnevvseteststemtnmeannettnsp.taWpysaiwtyhsocrwroymo-frprreeyet-edfnrivteipedreodnpidvesirdtfyreomnmdadnsaafgyreoommnee.ndta, aynodnines.tant cash flow, your PPRROOFFILIELEOFOYFOYUORUFURTFUURTE UPORRETPFOOLRIOTFOLIO •• HHigighhesetsCt aCshasFhloFwlow •• LLoowwesetsRt iRskisPkroPpreortpieesr&tieCsit&iesCities ••••• ITQQImmuurmunamkaelietdelyiyitdayN–tiaeeNCtwEeleqeewEaruriBqetTyrruiictiBklteyrH,icRokemhHeabsobamendde,sSLtaeanabsdleedSN,teMaigbahnlebaogNrehdeoiogdhsborhoods Typical Property •• HToumrnekWeyar–raCntylear Title, Rehabbed, Leased, Managed Price $139,000 • Home Wa“rrCanotyntact me for a Rent $1,395 Price: $110,Y0e0a0r, Bfuulliyltre2n0o0v1ated, built 2005 fr“eCe ocansthafcltowmaenafloyrsias.” Currently R4enBteedd f2o.5r $B1,a1t9h5s free cash floTwOMaWnIaLSlOysNi,sPr.e”sidente: $110,000, fully renovated, built 2005rently Rented for $1,195MMenetniotinonRERIeVaoltiyc4e1M1 aograrzeiWneEaAnLdTrHecaenivderoencee-iyveear1oyfefarree 408-867-1867 Realty41p1Gruepidmreo.cipoumemrthyommaenawgaermraenntt ywwitihthyoyuoru frirfisrtspt uprucrhcahsae.se. PAGE 31 • 2014 4T0O8M-8W67I-L1S8O67N, [email protected] PresideMention REI Voice Magazine and receive one-year of freepropReealtryt41y1Gmuidae.ncoamgement with y our first purchase. PAGE 36 • 2014 [email protected] TomWilsonProperties.com

NEWSFLASH I Survived 2014 events Real Estate Experts to Discuss Consumer CreditConcerns, Builder Confidence and the Market Recovery at Charity Event Organized by The Norris Group.Top officials from the Renowned investor and real National Association estate educator Bruce Norris of Realtors, Beacon Economics, Proper-tyRadar, California BuildersIndustry Association, Fan-nie Mae, and the MortgageBankers Association join realestate analyst Bruce Norris onOct. 24th at the Nixon Presi-dential Library for The NorrisGroup’s 7th annual“I Survived Real Estate”charity gala.Housing starts have unexpectedlydropped, some real estate mar-kets are experiencing slight pricedeclines, the mortgage market hascome to a screeching halt comparedto 2013, and the real estate industryremains on pins and needles as win- 10:30 p.m. Friday, Oct. 24, at the Nixon PropertyRadar Presidential Library in Yorba Linda. • Bill Cosgrove, Chair for theter approaches. Are we experiencing Mortgage Bankers Association Other topics of discussion will include • Christopher Thornberg, Principal,the start of the Great Recession II the latest statistics on home prices, default Beacon Economics rates, builder sentiment, consumer owner- • Doug Duncan, Chief Economistor will 2015 live up to analysts’ ship trends and the outlook for access to for Fannie Mae financing for consumers and investors. “Ifexpectation? the federal government is going to reduce The panelists will provide important the footprint of Fannie Mae and Freddie,” insights into what real estate profes-“California relies heavily on a Norris asked, “will the private market be sionals can expect to see in the coming its replacement? How will this be done months and beyond, according to Norris,strong real estate sector. As REOs and at what price?” who has built a following in the real es- tate community and with news reportersand short sales decline, we’ve seen Expert panelists scheduled for this after producing consistently accurate year’s “I Survived Real Estate” charity real estate forecasts.our investor network focus on new gala include: Proceeds from the Oct. 24th “I Sur-construction and standard seller vived Real Estate” event will be donated to Make-A-Wish® Orange County andsales but it’s been a slow start,” Nor- Continued on pg. 111ris said, adding, “There’s room for reWEALTHmag.commore price increases in Californiabut consumer financing will be keyin the year ahead.”Norris has assembled a panel ofreal estate experts to address the cur- • Beth Peerce, Vice President for therent state of real estate and its impli- National Association of Realtorscations for consumers and real estate • David Cogdill, President & CEO forprofessionals during his 7th annual the California Builders Industry“I Survived Real Estate” charity Associationgala, which is scheduled from 4 to • Sean O’Toole, President ofRealty411Guide.com PAGE 37 • 2014

The Future of Self DirectionExclusiveinterviewwiththeDirectorofProfessionalDevelopmentforTheEntrustGroup Copyright: ipfl / 123RF Stock Photo By Stephanie B. Mojica certain legislators are in- creasing the RMD age to worked use the accounts as a form of “leg-Though there have been a age 75 and removing the acy planning.” In other words, they wish number of financial indus- option of life expectancy to leave assets other than life insurance try-related initiatives in the payments from a benefi- policies to their relatives or other benefi- U.S. Congress in recent ciary’s options. Overall ciaries, such as charities. years, the future of IRAs, IRAs are still a great wayor, individual retirement arrangements, to save for retirement The traditional IRA, established underseems pretty safe from major legis- however, better under- the Employee Retirement Income Securitylation, according to IRA expert John standing of the types of Act of 1974 (ERISA), is the most commonPaul Ruiz, QKA CISP. IRAs available are still form of IRA chosen among American one of the major hurdles investors, according to Ruiz. Traditional  Ruiz, director of professional that tax payers face in IRAs allow potential tax deductibility ofdevelopment for The Entrust Group making the decision of contributions. Individuals who are alreadyin Oakland, California, has more than how, when and what type covered by an employer-sponsored plan,two decades experience in the financial of IRA to fund. Finan- such as a 401(k), as an example, will beservices industry. cial institutions have the challenge of educating  “There has been no new legislation their current customersthat has been passed affecting individ- and potential clients ofual retirement arrangements recently,” the benefits availableRuiz said. ”There are however several under current tax law asconcepts that are out on the table well as exposing theseincluding Automatic IRA arrangements clients on a broaderfor employers who currently do not range of investments that will help maxi-offer an employer sponsored plan in mize the growth in their retirement plans.”the Presidents Budget proposal forseveral years now. Other significant Let’s take a brief overview on the twoproposals that have been introduced by types of IRAs. The first one is the Tradi- tional IRA. In 2014, each person with an IRA can contribute up to $5,500. Whether or not the Internal Revenue Service (IRS) considers it a tax deduction depends upon the type of account the investor chooses. Though members of the general public typically think of IRAs as a way to fund retirement, many people with whom Ruiz has ‘Only about 17.5 percent of Americans with retirement plans choose Roth IRAs, which may be due to misunderstandings about the potential benefits of Roth accounts...’Realty411Guide.com PAGE 38 • 2014 reWEALTHmag.com

subject to stringent in- widow(er)s earning a MAGI BIRMINGHAM, ALcome level requirements above $191,000 annuallyto determine deductibility. cannot contribute to a RothDepending on what statistics account.someone takes as gospel,between 42 and 52 percent of Single taxpayers can earn aAmericans with retirement modified AGI of $114,000 perplans have traditional IRAs. year and still fully contribute to a Roth plan. A reduced The other type of IRA is contribution is permittedthe Roth IRA. Contributions for singles earning betweento a Roth IRA, established $115,000 and $129,000 annu-under the Taxpayer Relief ally. Anyone earning a MAGIAct of 1997 and named for its above $129,000 is ineligiblechief legislative sponsor, the to make deposits into a Rothlate Senator William Roth of IRA.Delaware, are ineligible fortax deductions, according Ruiz reminds people to keepto Ruiz. However, investors in mind that MAGI is not thefollowing IRS guidelines with same thing as earned income;withdrawals do not have to the MAGI is calculated afterpay taxes on the principal, as certain deductions are made towell as any interest gained. a taxpayer’s income, such asOnly about 17.5 percent of 401(k) deferrals, cafeteria planAmericans with retirement contributions and flex planplans choose Roth IRAs, contributions which meanswhich may be due to misun- that more individual may bederstandings about the poten- eligible to contribute to Rothtial benefits of Roth accounts, IRAs.Ruiz said. In a nutshell, the differ- “I think what we have right ence between the two IRAsnow is a lack of understand- (Traditional, and Roth) is, in aing between the differences Traditional IRA the taxpayerof the two different types may get a tax deduction forof individual retirement contributions but distributionsarrangements,” Ruiz said. will be taxed because the“Now, keep in mind that in a interest and deductible contri-Roth IRA there is an income butions have not been taxedlimitation that limits who before. In comparison to thecan actually make the annual Traditional IRA, Roth IRAscontribution. But the income have a tax-free distribution oflimits that we’re looking at principal, and if requirementsare not necessarily low-in- are satisfied tax-free distribu-come levels; they’re pretty tion of earnings as well. Ruizhigh-income levels, depend- also hopes to increase the pub-ing on which region of the lic’s understanding that cashcountry we are looking at.” and stocks are far from the only assets that can be deposit- As of 2014, a married ed into either type of IRA.couple or qualifying wid-ow(er) could earn a modi- “We’re definitely heavyfied adjusted gross income in the real estate investment(MAGI) of $181,000 annually world in The Entrust Group,”and contribute to a Roth IRA. Ruiz said.In some cases, people withan annual MAGI between v$181,000 and $191,000 canmake smaller contributions  to a Roth plan. Only those For more information aboutmarried couples or qualifying IRAs or other financial invest- ments, call The Entrust Group at 800-392-9653 or visit  http://theentrustgroup.comRealty411Guide.com PAGE 39 • 2014 reWEALTHmag.com

WDiescaoltvhewr tihtheSMteirvaeclDeoowf n by Linda Pliagas, publisherMy visit to Salt Lake City, Utah, was a fantastic opportunity to meet investors and industry leaders in person. It is at the Wasatch Real Estate Investor’s Expo where I first had the pleasure of seeing Steve Down’s captivating presentation firsthand. The Miracle of Wealth was a topic I was immediately drawn to.Linda: Can you summarize forour readers The Miracle of Wealthphilosophy?Steve: The Miracle of Wealth philoso-phy is based on the premise that wealthis not earned. Rather, wealth is created.Once you understand the principles ofwealth creation you can create wealthagain and again as I’ve demonstrated inmy career.Linda: Can you be more specific? 10 years. How would that impact your ters. The small event center concept hasThe Miracle of Wealth program con- future wealth? The growth would be been proven by another company whichtains Eight Wealth Factors that will astronomical! I co-founded called Noah’s. There areforever change the way you create now many Noah’s centers operatingwealth. Wealth Factor number one Linda: Of course simple math suggests profitably across the country.contains the core philosophy. It’s called that adding a zero to one’s assets every10X Wealth: The Miracle of Adding five to 10 years would be a miracle. Linda: Can you briefly describe thea Zero. Linda, imagine if you could My primary question is whether, or idea of a small event center?add a zero to your assets every five to Steve: A small event center is a high- not, there’s a ly advanced and efficient single level practical appli- 12,000 sq. foot building that provides cation to your space for family and business events. 10X wealth Often, the cost is half the price of other formula. So, event center options found in hotels and where does the reception centers. Best of all, guests rubber meet the have the option of shopping the catering road? or having their family or employees Steve: My cur- prepare and provide the food. rent real estate project is called Linda: It sounds exciting. Are these The Falls Event Center. This is small event centers profitable when a new concept which I call compared to other commercial real small event cen- estate? Continued on pg. 42Realty411Guide.com PAGE 40 • 2014 reWEALTHmag.com

It’s about time we show you A REAL HERO Close your loan in as little as 30 days!Steve Bighaus has over 24 years experience in the mortgage industry. He maintains afocus on servicing the real-estate investor by offering aggressive financing options andresources for buyers interested in purchasing or refinancing their investment property.By concentrating on investment properties and the financing that comes with them,Steve is recognized nationally as an industry expert. The knowledge that he has enableshim to find financing for people even when they have had difficulty elsewhere.Contact Steve Bighaus Attention Investors:Senior Loan Officer206.930.1801 Pre-Qualify [email protected]#: 112825This is not a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, NMLS# 3116sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwritingguidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility andmarket conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction inpayments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant. SecurityNational Mortgage Co. is an Equal Opportunity Lender.

Miracle of Wealth with Steve Down, pg. 40Steve: Linda, that’s the most exciting part. When we build Linda: How do you have the deal structured to attracta small event center in a certain demographic we’ve demon- investor partners?strated that we can more than double thereturns of traditional commercial real Steve: I have structured the transaction to accom-estate. plish three primary goals. Goal one is to mini- mize investor risk; goal two is to provide aboveLinda: If so, that’s remarkable. average real estate income; and goal three isSteve: The small event center concept wealth creation through the 10X wealth strategy.in the most exciting commercial real Details can be heard at my next lecture.estate play since storage units becamethe grand slam back in the eighties. Linda: In your opinion, what’s the singlePublic Storage, for example, trades on biggest mistake made by investors?the New York Stock Exchange (PS) and Steve: The biggest mistake I see is whenstill puts 40% returns to the bottom line investors try to do it all by themselves whenon over 2,200 facilities! they don’t have to. When I fly I leave it to the professionals rather than going solo.Linda: I would love to have access to a Linda: Why would investors want to joinsmall event center for our own con- you as opposed to doing it themselves?ferences scheduled across the country. Steve: By hooking their car to my train theyHow many do you plan to build and can diversify better than they could on theirwhere? own. They benefit by having an experienced fo-Steve: We plan to build 100 centers throughout the U.S. by our cused team developing highly profitable real estate across thetenth year. Currently, we have 16 under development in Utah, country. Best of all, I structure the transaction in such a wayCalifornia, Arizona and Colorado. We are anxious to expand that it significantly reduces the risk and provides a far greaterinto Texas and Illinois. We intend to focus in states West of the upside potential. My experience tells me that doing all theMississippi during our first five years. Continued on pg. 77 Eight factors that will forever change how you create wealth. From Steve Down, Best-Selling Author of Financially Fit for Life Wealth Factor #1 10X WEALTH: THE MIRACLE OF ADDING A ZERO Get the audio book for free at MiracleofWealth.comRealty411Guide.com PAGE 42 • 2014 reWEALTHmag.com

Realty411Guide.com PAGE 39 • 2014 reWEALTHmag.com











www.opalgroup.net Family Office & Endowment Investment Forum A Private Wealth Series Event September 15-16, 2014 Renaissance Vancouver Harbourside Hotel, Vancouver, BC As part of the Private Wealth Series, this family office and endowment investment conference is Opal's premier event for high net worth individuals, family offices, and endowments. The Vancouver program is tailored to Canadian investors who have an interest in new and exciting investment opportunities world wide. Whether you are interested in learning more about real estate, real assets, or how to continue to build on existing wealth, this conference gives delegates the opportunity to learn and mingle with industry experts. Sponsorship and Exhibiting Opportunities are AvailableIf you are interested in attending, sponsoring, speaking or exhibiting at this event, please call 212-532-9898 or email [email protected] RegisterTo register, visit us online at www.opalgroup.net or email us at [email protected] REFCODE: FOCWA1407

Don’t Flip This House!Why this home flipper pivoted to buying notes,and created an online note buying community… by Tim Houghten Fuquan Bilal, Founder of National Note Group, pen, as on the couch, watching TV with the kids. In thekicked flipping houses to the curb. Here’s why he did it, exclusive interview that follows, Fuquan breaks down howand how more investors can enjoy a rewarding transition to easy it has been made for investors to buy notes, how theyinvesting in highly profitable mortgage notes… can stay safe doing it, and why more should. In Pursuit of True Freedom After joining the ranks of house flippers vying for big Leader of the NNG Note Academy, Bilal recognizes paydays buying and fixing up houses in the early 2000s,flipping houses, and spending hours drooling over eye Fuquan says he woke up one day and realized that he hadcandy at interior design stores can be enticing, and finan- become a “slave to money,” a position which was “robbingcially rewarding. After all, he has been a successful flipper him of a real life, and true freedom.”himself. However, for Fuquan, these days are now focusedon acquiring pools of mortgage notes, and helping home- As all house flipping investors know, it is an easy trapowners. to fall into. Flipping houses can be incredible profitable. Yet, I dial 973.855.4922 (the head office of NNG)…the phone the promise, and potential for a four hour work week, oftenrings. And just when you are mentally preparing yourself for instantly dissolves in the face of ambition, and the thrill offacing the grueling process of navigating yet another automat- the chase of the next deal. Before long it can become moreed phone system…a REAL person answers! than a full time job, and a highly stressful one. To the background beat of live deal making in process,in the active New Jersey headquarters of National Note So Bilal, assembled a top team with almost threeGroup, Bilal’s calm voice, conveys the confidence of a decades of experience in the mortgage note, and debthighly experienced, and unflustered money manager that investing industry. National Note Group was launched, andwould be just as at home in the center of the Wall St. bull eventually, the Note Academy, which equips and teaches others to invest in notes safely and successfully. Now the industry thought leader spends his time turn- ing others onto the incredible perks of note investing, andRealty411Guide.com PAGE 50 • 2014 reWEALTHmag.com