Real Estate Weath featuring Andrew Cordle Fall 2014

helps homeowners and families stay in their homes. some zip codes,) National Note Group sees incredible Notes can still be used as a tool for flipping houses, rewards and sustainability in this sector. We are remind- ed that defaults will always be present due to a variety ofbut Fuquan says he enjoys the enhanced freedom they life factors, and that current perceived dips in foreclosureoffer for facilitating more time with his family, adding “You activity, and REO sales are actually in large part due tocan still spend your weekends browsing at Home Depot, banks and mortgage lenders selling the paper to avoid theif that’s really what happiness means to you.” high costs and hassles of the foreclosure process. Why Buy Notes? National Note Group acts as the bridge between Wall Bilal says “There has never been a better opportunity Street and Main Street to provide individual investors withfor creating cash flow, and acquiring these assets at a access to attractive note buying and investment opportu-discount, while enjoying more passive income and wealth nities.building.” The desire to “retire early” is obviously one of the big- Investors can choose to buy individual mortgage notesgest drivers behind interest in all types of real estate and through NNG, or become capital partners, and invest in amortgage investments. However, this note investing ed- pooled fund. This second option provides the security ofucator says “buying mortgage notes is equally attractive an SEC regulated and approved investment, along withto currently active hands-on real estate investors as it is the superior security of being collateralized by the entirebeneficial for busy professionals such as doctors, lawyers fund’s assets. A unique new feature NNG has just includedand engineers, seeking superior returns and security than offers the ability to draw down from the pool to acquirethe stock market can provide.” individual notes too. Mortgage notes are known for offering high yields,but with the brick and mortar backing of direct real estate Note Smarts: Navigating NPLsinvestment, without any of the hassle that comes with NNG specializes in institutional note buying, and spe-property management and maintenance. cifically in second mortgages. Targeting higher yield non-performing 2nd mortgage Getting Started in Note Investing loans, behind performing first mortgages is among the Prior to founding National Note Group, company strategies that have made National Note Group so suc-president, Bilal started investing in notes with his own cessful, and has given their investors the best of bothmoney (and still does). worlds - in yield and performance. He tells our readers that while many individuals are Still, Bilal elaborates that comprehensive due diligencemoving large portions of their capital and portfolios over to is performed prior to acquisitions. This includes evaluatingdebt investing through mortgage notes, it is entirely possi- equity status, and individual borrower credit reports. He isble to get started with as little as $7k to $8k. However, he clear that “the goal is not to foreclose,” but instead “when-is quick to point out that those able to invest at least $25k ever possible to assist homeowners and their families getare better off, by being able to benefit from immediate di- caught up and stay in their homes.” However, he contin-versity across multiple 2nd mortgage notes. Given the high ues that there are some cases in which borrowers simplyrates on these loans, Bilal says earning yields of $600 a can’t afford their homes. In these situations NNG goes themonth in cash flow on this modest amount of investment extra mile to help them relocate, often including assistanceisn’t uncommon. with moving and move-in expenses for a rental home to Some have perceived venturing into note investing provide a graceful exit and fresh start. For investors Mr.as complex in the past. However, National Note Group’s Bilal highlights that any notes in states which take longer tospokesperson tipped us off to NNGNoteAcademy.com, foreclosure on are protected by offsetting these timelineswhich was built as an industry first, revolutionary, virtual with deeper discounts. vnote investing resource center and online community. Hereboth aspiring and veteran investors can access forms, GET CONNECTEDdocuments, top level tips and tools, share information, andsign up for events like the six week Cash Flow Boot Camp TbdpNihnueoaogybrttistnitoeohgfnune, nliainasndltbeNeesolroliaevwnttesegitNlGlehaNdorfinontGlduidinnNpeimon..lcvteoeoearAmserntci,indanogedgrtebainmmyilssoyni.roamcetnoepdmsalybsadaouninuapddtl--course, and ongoing voice support. It’s like a “GPS naviga-tion system for investing in mortgage notes.” Life Happens + The Bridge While the media has done an outstanding job ofdeclaring foreclosure rates as declining across the nation(even while new defaults are surging by triple digits inRealty411Guide.com PAGE 51 • 2014 reWEALTHmag.com

before RehabMagic SAMPLE FLIP IN FONTANA Purchase Price $130,424.81 Rehab Monies $ 30,000.00 TOTAL $160,424.81 Utilities/Gas for Rehab $1,000.00 Alarm $397.00 Other Utilizes $750.00 Fire Insurance $255.00 Home Depot/Etc. $11,257.35 Labor $11,000.00 Carpet padding/Vinyl $1,170.00 Home Inspection Work $1,526.68 Termite Work $450.00 Buyer’s Refund $-450.00 Appliances $1,200.00 Landscaping $1,130.00 Add on $6,716.19 Air conditioning N/A Granite $1,200.00 Dumpster $1,024.24 Roof Certification $ 450.00 TOTAL: $33,549.78 AFTER The neglected house on Date Avenue AFTER in Fontana needed more thanRealty411Guide.com just a simple coat of paint, it needed a complete overhaul. Yet, Anthony Patrick, from www.REIroadmap. com, knew that underneath the filth a beautiful home was awaiting to emerge. This short sale deal was found on the local MLS (Multiple Listing Service). The house had numerous code vio- lations, including illegal additions. While other investors passed on the property, Anthony Patrick saw oppor- tunity and profit. To learn more about fixing and flipping homes, visit his website www.REIroadmap.com PAGE 52 • 2014 reWEALTHmag.com

Learn the Money-Making Art of Flipping Houses... HANDS ON! In 3 Intensive Days Attendees will Discover:aHow to find great investment propertiesaHow to manage contractorsaHow to estimate repair and building upgradesaHow to never overpay for repairsaWhich upgrades will provide the best returnaHow to determine if a property will qualify for FHA financingaHow to inspect properties with confidenceaHow to develop a real estate investment teamaHow to analyze a rehab project to prevent over-spendingaHow to avoid pitfalls & more... Jump on the Bus Today!www.REIroadmap.com

pital Lending Group Rick Perez, CEO of Realty Capital Lending, Reveals His Tips for Success or Flips & CommercialT h e P o w e r o fs • QuickandEfficientClosings • Qualifying is Easy • Financing Available Up To 90% of Purchase Priceal • Rates From 9.99%ot • 12-Month Terms • Discount Points From 2%d • Wholesale Opportunities • Commercial structure loans $1 - $100 milliond • 3-year fixed on rentals startingfor at 7.5% sitmaetes dariencomeTust EXPERIENCE IS residential one to four units and small nothing like KEY FOR SUCCESS commercial buildings. From 14 to Experience is so valuable, 40 days on, most, larger commercial Visit ourtWheeybwsietree however, if you don’t structures. www.RealtyC2ba0ept0iwt9aealeLnnGd.com have it, bond with one ofn of your teammates that does. 4. CREATIVITY IS KEYre 2012 where REOs and foBreRcEloLsiuc#res0w19e5re75in06 Here are some important Internal conversions, add-ons, build new, down size, change use, buy notes, joint 8Sah81ba2a3rul42denDsedFroaiarwarneencnsdbeet.eohycn,aNoerCmodABweilrn9,vg0tSdo2hS4foit1nretd. tips I’ve learned along venture, mortgage notes... the way: Being flexible in your deal making will Once fouEndn,rique “Rick” Perez improve your chances of success. Our team always likes hearing about the delays of getting the 1st and 2nd Trust (311.0V) e3r0i8f-y74A2l5l the Information Deeds accepted can be extrRemiceklyP@RealtyCIatpisitaallwLGay.csoamgood idea for you to verify agonizing. the info with the city, a title company or ideas our clients have and we often get For the “in-and-out investors” with another agent. We make it a practice to involved in joint ventures. Be a creative little knowledge, it is a difficult time. review the subject property and comps, investor and if something is needed to Inventory is the key, but where do we the zoning and square footage. We have make the deal work, don’t be afraid to get it? found that helping our clients understand ask for help. The investors we work with directly a deal, a construction build-out idea, or are getting creative and networking. any possible issue that can arise puts 5. WORK WITH THE RIGHT TEAM Making more contacts with real estate our clients that much more ahead of the Don’t try to do this alone, the right agents, attorneys, probate court deals, game. people can expedite your success. For continuing to pursue short sales and example: We come across inventory even now standard sales. The last 2. Protect Thy-Selves every week from our bird dogs and few years many investors gave up Do your own due diligence. We all wholesalers and share these with our purchasing foreclosure trustee sales have to protect ourselves. The reality is clients. this is an added bonus to having due to the large hedge fund buyers bird dogs and agents may be giving a our company in your corner. It’s picking up the properties at buy and miscalculated value. Drive the property, especially important to add trusted team hold prices. walk in it, drive to review the comps, members to your circle if you don’t’ get The successful investor works hand- verify city records. Please make sure out of the office or house much or are in-hand with his active agents and what you are being sold is in fact what just starting out. finders. He has to be able to respond the building department of said city has On this note, if you happen to have fast and follow through, and close registered. wholesale deals and would like to quickly when needed. I have seen address the possibility of selling them to many investors falling at the sidelines 3. Have the Funds Ready a few of our clients, please contact us. due to lack of performance, lack of Private Money/Hard Money lender in We are always looking for residential keeping their word, and last minute your corner. If you need my help on and commercial inventory. Also, lots hard-nose tactics that may save them a a deal call me, knowledge from A – Z with existing plans in place are always buck or two on the current deal. of real estate investing and building, a possibility, since many of our clients It’s important to treat the “hustlers,” Interior conversions, add-ons, setbacks, have been taking on new build projects. out there finding you deals, with the Retaining Walls, Casons, Plan check, I hope these tips will assist you in utmost respect in order to nourish hearings, conditional use permits for landing and closing your next deal. v those relationships. Remember: Our different zonings, Variances, REAP business is based on the Win-Win properties, Substandards, Liens. For more information about Rick Perez concept. Closings from four to 10 days on please contact: (310) 308-7425 Realty411Guide.com PAGE 54 • 2014 reWEALTHmag.com

Finding a Mentor mastermindLori Greymont with Summit Assets Group Shares Inside Tips!Ilove real estate. It Lori Greymont what I learned growing up. Then let go of it. Continuing to con- is part of who I am. Since my early days, I have demn yourself wastes precious energy When I was a child, since founded a nationwide you need to create more income. The we would move into real estate turnkey invest- next step is to create a system to pre-the “broken house” fix it ment company that since vent this same mistake from happeningand then eventually sell 2010 has bought and sold again. Then, determine if you can sellit and do it again. My over 1600 homes. My rehab- the house now and if so, for how much? bing experience has grown to If you do fix it, how much will you sell now where we successfully it for? Choose the path of the smallest loss. If they are similar, ALWAYS takemother was the queen of creative rehab remotely, up to hundreds each year. the “now” option so you can employ your resources (time, money, energy)financing. She didn’t have credit Some people ask if I have ever failed. into a profit making property in theor employment after my parents That depends! If by failure, you mean fastest time possible. Lastly, don’tdivorced, but that didn’t stop losing money? Yes, I have lost money, blame others. That doesn’t solve the problem and people start to think twiceher. She was determined to raise lots of money. But I stay in the game. As about doing business with you be-her children in a house, so she Warren Buffet puts it “Just make sure cause they don’t want to be blamed forfound someone that would carry your wins are bigger than your losses!” your decision making abilities or lack If you are investing in real estate and you thereof. I quickly admit my mistakes. I don’t throw any more money at it tothe financing- contract for deed. plan on only doing 1 deal. You have a try and save it if it doesn’t make sense.After the house was fixed, she good chance of failure. If you plan on do- I create a liquidation plan and move on.wanted to move to a new town ing 10 deals, you can win 8 out of 10 of Sometimes my liquidation plan means Iand she found someone willing those deals and be well ahead even with have to find another deal to get the short two losses. My point on this is don’t go fall to sell the deal I am losing money on. I want to invest my resources (time,trade houses straight up. Each into real estate tepidly, as though you are money, energy) on a new deal that willmove meant rehab for us, but we testing the water. If you do, it probably make money and cut my losses as quickloved it. As I look back, I realize will not feel good and you will be done as possible.my mom was my first mentor in prematurely.many ways more than business. My true definition of failure has If by failure, you mean buying the wrong nothing to do with losing money. To house or paying too much? Yes, I have me, Failure is not trying or giving up. If you ask me if I have failed and weAs a college student, I ventured out on done both. One of the defense mecha- use my definition? Then my answer ismy own- I purchased my first home for nisms we do as humans is we don’t want “No, I have not failed.” But, there is$40,000. It was a HUD program with people to think we are stupid (we don’t only one reason that I haven’t. Have I$500 down (my interest rate was 21%!) want ourselves to think that either) so wanted to quit? Yes, at least a thousandand I qualified for the loan using rental we justify why we thought something times. Have I not wanted to make thatincome from the house I was trying to was a good idea. Let’s say you bought a “All important but intimidating phonebuy since I was an unemployed college house and thought the rehab would only call?” Yes, at least a thousand times.student. This was on the advice and be $10,000. Somehow an inspection was There is only one reason I am still incounsel of my mom, of course! I was able missed and after you own the house, you business, it is my secret weapon. I haveto rent out the basement after we turned find out there is structural issue that will mentors. Yes, that is plural. I invest tensit into an apartment. I didn’t stop there, it cost more than $25,000. This cost pluswas a 3 bedroom house and I only needed the rehab will cause you to sell at a loss. Continued on pg. 1011, so I rented out the other two rooms First and foremost, don’t justify the pur-also. Now mind you, this house was only chase. I have heard investors say things4 blocks from the university, so it was like, “I am ok losing money because I ameasy to rent out and for top dollar. That getting experience.” Never be ok withwas when I fell in love with cash flow! I losing money. That sucks! Instead realizebecame a student of my mother, applying that you made a mistake and admit it.Realty411Guide.com PAGE 55 • 2014 reWEALTHmag.com

taxes Tax Planning Strategies for Real Estate Investors Tony Watson with Robert Hall & Associates provides money-saving tips for investors. by Stephanie B. Mojica inside and outside of California. Unfortu- nately, in Watson’s professional experi- The ultimate tax ence real estate and tax education tends to deduction for any be the exception rather than the rule. American citizen “One of my major concerns with the is a well-planned invest- general public is that people don't quite ment in commercial or understand what they should at the level residential real estate, of investing they’re in, whether they’re in according to Los An- their thirties, forties, fifties, even in their geles-based consultant sixties and seventies,” Watson said. Tony Watson. Watson says most people do not under- stand how much of a tax deduction real estate investments can create. On the flip side, a lack of basic tax education can cause investors to accrue unexpected tax People flipping three or more real estate properties annually need to pay careful attention to how they structure their businesses, according to Watson. Watson, a tax consultant for Robert bills, especially if they choose to invest tial tax benefits beforehand can probably Hall & Associates since 2005, spends as a sole proprietor rather than through a alleviate most if not all cases of investor part of his time as the firm’s official corporate structure. burnout, Watson says. The advice he public speaker. He discusses tax ins Another problem Watson tries to curtail would give to a “flipper” would be slightly and outs with audiences ranging from through one-on-one education and his different from the advice he would give to 10 to 1,000 people, utilizing his 13 group discussions is the misconception someone with a more long-term invest- years of real estate industry experi- that people can easily make thousands, ment outlook. A flipper generally keeps a ence to educate potential investors. even hundreds of thousands of dollars, property less than a year before selling it “Real estate investing and actual through real estate investing. for a profit. income taxation kind of go hand-in- “Once a person does their first deal, it’s People flipping three or more real estate hand,” Watson said. either a make or break situation at that properties annually need to pay care- Watson, who earned a bachelor’s point,” Watson said. “Because I have a lot ful attention to how they structure their degree in business administration of clients who come in gung-ho about try- businesses, according to Watson. If the from Chapman University in Orange ing to get investing in real estate or getting investor is not prepared, he could end up County, California, grew up in a their first investment off the ground, they owing self-employment taxes along with family of real estate investors. He get hands-on with the property and then the typical state and federal income taxes. along with his brother and father each they get worn out and then that’s the last Thus, not having a corporate structure have years of experience investing in property that they try to invest in.” commercial and residential real estate A thorough discussion about the poten- Continued on pg. 111 Realty411Guide.com PAGE 56 • 2014 reWEALTHmag.com

A Special Realty411 SupplementMoney411PRIVATE Vol. 1 • No. 2 • 2014 Meet Mark Hanf CEO of Pacific Private Money

www.opalgroup.netTrIennvdesstSmuemnmt it September 8-10, 2014 The Four Seasons, The Biltmore, Santa Barbara, CA Opal Financial Group's Investment Trends Summit serves asan educational forum focused on analyzing trends for the future,as well as exploring ways to implement new strategies inparticular investment plans. The event is designed to meet theneeds of money managers, senior pension fund officers andtrustees who prefer smaller, more structured programs. Bylimiting this event to select managers, participants will be able tomore carefully examine a distinct set of topics specifically tailoredto their interests.Sponsorship and Exhibiting RegisterOpportunities are Available To register, visit us online at www.opalgroup.netIf you are interested in attending, sponsoring, or email us at marketing@opalgroup.netspeaking or exhibiting at this event, please call212-532-9898 or email info@opalgroup.net REFCODE: ITSA1402

Money411PRIVATE ContentsA5 Leverage with B2R Finance A Special Realty411 PublicationA7 New Rehab Loan Programs Money411PRIVATE Vol. 1 • No. 2 • 2014A9 Equity Trust University’s Event Randy Reiff, CEO of FirstKey Lending.A11 Discover Pacific Private Money The Bay Area is bustling with real estate activity andA14 New Options for Investors many deals are being financed with private capital.from FirstKey LendingContact us: Vol5No.2.indd 57 Meet Mark Hanf 805.693.1497 or CEO of Pacific info@realty411guide.com Private MoneyBe social and receive updates on: 8/8/2014 7:45:50 AM Facebook, Twitter, LinkedIn, Pinterest, Google+ and more Private Money411 Cover: Mark Hanf, CEO of Pacific Private Money, assists Bay Area inves- tors in financing their real estate transactions. Below: Mingle with hundreds of investors in Florida, see page 9.Important Disclosures for Our Readers:The information and presentations pro-vided therein do not constitute an offer orsolicitation to buy or sell securities or realestate. Please be aware that real estate in-vesting can be risky. Realty411, the pub-lisher of Private Money411, is not respon-sible for any of the information providedand/or statistical data presented, and do notreflect the opinions, advice or research byus. Readers are 100% responsible for theirdue diligence, for all investment informa-tion and for all decisions with respect toany potential investment or transaction.411 recommends readers seek the adviceof a trusted attorney, broker, CPA and/orfinancial adviser before investing. A Special Supplement from the Publisher of Realty411Realty411Guide.com PAGE A3 • 2014 reWEALTHmag.com

America’s Buy to Rent LenderFinancing Single-Family Rental PropertiesB2R Finance, America’s Buy to Rent Lender, is a leading provider of single-familybuy to rent mortgages for professional property investors. We offer cost effectiveand innovative lending solutions dedicated to investors buying single-family rentalproperties. “Whether you own 5 properties or 500, B2R can assist you with a variety of lending programs to enhance your investment.” Learn More About B2R Lending Programs: www.b2rfinance.com info@b2rfinance.com 855-710-0227

LReevnetarlaHgoinmge MthaerNkEeWt By Tim Houghten which placed ‘outdoorWhat’s really going on in living spaces’, ‘curb the single family rental home industry? What appeal’, and ‘garages’,are real estate investors buyingnow, and why? Who is up for a and other features more$10M line of credit to expandtheir rental property portfolio? characteristic of single Private Money411 sat down with family homes as thefinance industry veteran and Presidentof B2R Finance John Beacham to get buy to rent loan programs specifically to most in demand factorsthe real deal on the state of the markettoday. provide liquidity, and fuel this market. Re- for today’s home shoppers. So what are serious real estate en- cent housing statistics appear to indicate In fact, in many areas rental vacancytrepreneurs and sophisticated inves-tors really up to now? What priorities this has been adding strength and traction. rates are below 5%. Recent statisticsare driving their property investmentmoves, and how great are these new buy from Zillow and the Boston Globeto rent loan programs, really? What Are Real Estate Investors reveal rental rates responding by rising Buying Now, and Why? by over 22% year-over-year in some While headlines reveal major bank brands neighborhoods. In Southwest Florida, shedding mortgage staff by the thousands, some prime neighborhoods have recent- Beacham reports B2R Finance has actual- ly seen asking rents rocket 50% in a ly been “beefing up” the firm’s operational matter of weeks, and this is the region’s and client service team, to meet increased slow season. demand. Meanwhile, U.S. GDP has been According to the finance giant’s presi- revised down to negative territory, bond The President on the State of the dent, speculation about declining fore- yields are low, stocks have shown theirSingle Family Rental Home IndustryThere’s no question B2R Finance’s John closure activity, “has not been a factor.” more volatile side, and investors need aBeacham has to be one of the top mindsin the mortgage and real estate industry Some investors are certainly still acquiring stable alternative.today. In a rare opportunity to get hispersonal view on the market and ben- distressed homes, though for The modified American Dreamefit of his 17 plus years managing bigmoney for the world’s largest mortgage the majority, it is business as might involve a little less sweatgiants, Private Money411 was able totap the President’s take on the evolving usual; acquiring sound, less equity and commitment today,rental home landscape. problematic, cash-flowing resulting in renting a family home Firstly, Beacham reminds us just howlarge this market is, with “an estimated rental homes from more with some yard space becoming a14M rental homes in the U.S.” Thisnumber could increase significantly if traditional sources. very happy medium for many.billionaire investor, Sam Zell’s recentprediction of American homeowner- Asked for his opinion At the same time, professionalship dropping to just 55% comes truetoo. Recently most of the single family on how some parties have investors, and the more finan-rental pool has been held finance free. recently used the media to John Beacham cially blessed are in need of whatBeacham credits this to a void in themortgage market, which has lacked promote their interests in Beacham describes as “an inflationstrong options, and wasn’t serving realestate investor needs. B2R Finance proclaiming “the ‘burbs are dead”, and ev- adjusted asset, which is able to providebroke into 2014 with the game changingannouncement it was unleashing new eryone from Millennials to aging boomers stable retirement income.” Single family are flocking to dense inner cities, in search rental homes check all the boxes perfect- of micro apartments, Beacham said he had ly, providing investors can find “predict- witnessed no substantial, tangible shifts ability in long term financing.” in data to support that. Rather he points to very moderate, to “low single family Priorities for Real Estate Investors rental home vacancy rates, which are hov- Aside from concern of lost opportunity ering around just 5%,” for those that want costs, and long-term impact on invest- real numbers to support their investment ment portfolios from not seizing on decisions. current market conditions, real estate This appears to more closely coincide investors have certainly found far with multiple recent studies including the more clarity in what they expect from 2014 Realtor.com Home Crush Survey, a finance partner, and they are increas-Realty411Guide.com PAGE A5 • 2014 Continued on pg. A16 reWEALTHmag.com

We lend on distressed Real Estate Investments! a program PProRgOraGmRAHMigHhlIiGgHhtLsI:GHTS:designed just ••NNooPPrirmimarayryReRsiedseindceencefor real estate ••NNooPPrer-eP-aPymayemntePnetnPaletiensa!lties! •••LSLohaoonartnATemmrmoouuBnntrsitdsugpueptoFitno$a4$n08c0i0n,00g,*0000*0 investors! ••RSahteos:rt1T2e.r5m– B1r4id%ge Financing* ••LTRVa:t6e5s%sttaort8in0g%o1 uotf aput r1c0h.a0s%e price ••PUoipnttsova8r5y%. PloefaPseusrceehawseebsite •foPropinritcsinvgairnyf.oPrmleaatisoen see website for pricing informationHard Money Wholesale Lender FINANCIAL, LLC Funding at High Speed! Equity Based Lending Wholesale Division • California • Arizona Telephone 559.326.2509 Fax 866.602.8892 zincfinancial.net This information is for use by mortgage professionals only and should not be distributed to the general public. All loans are made in compliance with Federal, State and Local Laws. This is not a commitment to lend. Loans made or arranged pursuant to a California Lender’s License. Loans made or arranged in Arizona must be represented and originated by a mortgage broker qualified to do business in that state.1 Up to 85% of acquisition, LTV with minimum of 5 or more profitable transactions with ZINC in the last 12 months. *Please go to www.zincfinancial.net for complete details

2 new Rehab loans by Tim Houghten advantage of LTVs as high as 85% of the purchase price. ZINC Financial will also Todd PigottZINC Financial, a Clovis- fund up to 70% of rehab costs. Loans canbased private lender be closed in as little as 7 days. Access have used their own cash to put up non-launches two new rehab to the Velocity Program is reserved for refundable deposits. loans for California and real estate investors with a track record As a true direct lender ZINC FinancialArizona Investors. of flipping houses within 4 to 6 months; is able to make fast, common sense loan and continue to have a strong continuing approval decisions that other lenders can’t. Both flippers and buy and hold relationship with ZINC. Newer investors Most lenders will not lend on deeply investors are about to find are able to begin by building a relationship distressed properties, and ZINC specializes financing for real estate deals with ZINC via the firm’s other programs, in this area. Whether it’s a short-term fix in California and Arizona with the intent of earning access to the and flip loan, or a long-term buy and hold,much easier to come by, and leverage Velocity Program. ZINC has the private funds on hand tooptions far more attractive. close these transactions. President of Clovis, Calif.-based new buy and hold programZINC Financial, Todd Pigott has Most lenders won’t consider financingannounced the addition of two new, For those real estate investors focused on f or challenging transactions, such as: very aggressive investor loan programs long term wealth building and ongoingfor rehabbing and flipping or rental passive income, ZINC Financial is also • Flood damaged propertiesresidential properties. rolling out a Buy and Hold Investor According to the principal of this Program for rental properties. • REO or foreclosuredirect California lender, high investor Specifically available for one- to four-unitdemand, and “a strong exit strategy,” residential rental properties, this program • Extremely dated propertieshas made rewarding experienced offers attractive rates and rehab funds forrehabbers, with preferred private money acquiring distressed homes and bringing • Fire damaged properties and burnoutsloan terms, a natural expansion of them up to rent-ready condition.already popular financing options from • Vandalized propertiesZINC Financial. Buy and Hold Investor Program Highlights Include: • Unpermitted additions, etc. NEW Velocity PROGRAM • Rates from 7.49% • Probate propertiesIn an exclusive interview with PrivateMoney411 magazine, Pigott revealed • 5 year fixed rate loans • Properties with inspection issuesdetails of ZINC Financial’s new lowrate Velocity Loan Program…10% and • LTVs up to 80% of purchase price Continued on pg. A182 points. Velocity is available to experienced Why ZINC is uniquerehabbers who have completed twofix-and-flip loans with ZINC, meeting If the above wasn’t reason enough forcertain Velocity requirements. These fix and flip and buy and hold investorsinvestors will receive preferred to check out what ZINC Financial has toterms for fixing and flipping houses offer, Pigott unveiled several other uniquein California and Arizona. Through advantages investors will find whenreduced rates, rehabbers can achieve seeking access to private money workinga higher R.O.I., and enjoy even larger capital. ZINC Financial offers NO pre-profit margins. Pigott highlights a low payment penalties for their fix and flip10% interest rate, with just 2 points loan products, and can close in as little asas providing investors access to some seven days. This is a result of ZINC beingof the best leverage in the industry in a true direct lender, lending its own funds.years. Investors can use Velocity to take They are not a broker, who then has to try and find individual investors for its loans. This can be critical for those thatRealty411Guide.com PAGE A7 • 2014 reWEALTHmag.com

Earn Tax-Free Wealth onYour Next Real Estate DealWe Can Show You How!3 Days | 30+ Sessions | 40+ Speakers | 500+ AttendeesThe single largest alternative investment summit in theretail investor industry2014 Equity University Wealth Building SummitSeptember 19-21, 2014 | Orlando, FLSpots are LimitedRegister today at www.equity-university.com/summit

How to Earn Tax-Free Wealth on Real Estate Deals and Meet Hundreds of Other InvestorsThere is a (legal) way investing account custodian that inves- year, to the point that more than 500to make tax-advantaged tors can use retirement funds to invest attendees are expected for the 2014 con-profits on your real in real estate or any of the other asset ference, which will take place Septemberestate investments. options permitted by the Internal Revenue 19-21, 2014 in Orlando. Many attendees Service. Self-directed investing account return to the conference year after year custodians answer to the IRS just as any because each conference produces a newEquity University’s Wealthy Build- other IRA provider, it’s perfectly legal and slate of successful investors sharing their ing Summit was created 6 years it has been since the creation of the IRA strategies. ago to reveal those strategies from in 1974.the successful investors using them and to In addition to providing the knowledgehelp investors connect. Event Created to Help investors need to understand the unique Investors Get Started aspects of self-directed real estate invest- Many real estate investors have been “Is it hard to do?” is a common ques- ing, the event offers a chance to discoversurprised to find out that they could pay tion about investing in real estate with strategies that they might never havefewer taxes – or defer tax payments – on a self-directed IRA. It is very similar considered or thought was possible.profits from their real estate and other to the way you currently invest in realinvestments. estate. There are just a few rules unique to Some of the topics that will be dis- self-directed IRAs that investors should cussed during the weekend’s 30-plus It may not seem possible, but it’s be clear on before they get started. hours of education include:true – and legal. Government sponsored An inside look at up-to-the-minute market trends from an industry authorityretirement plans such as IRAs and401(k)s, as well as healthcare and Education is just one component ofeducation savings accounts, allowthe plan holder to invest in almost successful self-directed investing; the otheranything – including real estate. is getting in front of the right people.In addition to all the benefits thoseplans provide—tax-deductions andtax-free profits—apply to nearly anyinvestment the investor chooses,including real estate. The key to self-directed success is at real estate data and insight provider Reducing Taxes on Real gaining the knowledge to confidently RealtyTrac Estate Profits Since 1974 carry out that first deal. Realizing this How to take advantage of opportunitiesMost investors don’t know this oppor- fact, self-directed IRA custodian—Equitytunity exists because most custodians of Trust—established an educational arm in today’s real estate market, includingIRAs (and other savings accounts) do not of the company—Equity University—to foreclosures, rehabs and rentalsoffer truly self-directed IRAs that allow help self-directed investors become moreAmericans to invest in real estate and successful. Advanced real estate investing strate-other non-traditional investments. gies that clients have used – and others According to industry estimates, only Equity University furthered this mis- can replicate – including LLCs, wraps,about 2 percent of Americans are current- sion six years ago with a three-day event subject-tos, wholesaling and morely taking advantage of self-directed IRAs. that combines self-directed investingThis is likely because most financial education from top industry experts Ways to invest in real estate with littleinstitutions don’t have the capability to and successful Equity Trust clients with money downoffer this type of account, and financial opportunities to connect with hundreds ofadvisors aren’t incentivized to set their other investors across the country. Two bonus days (September 18 and 22) filled with half- or full-day workshops Based on the success of the first year, that provide a deeper look at specific investment strategies from the successful, seasoned veterans who are using them.clients up with this strategy. Wealth Building Summit has become Continued on pg. A13 It’s only through a self-directed an annual conference. It has grown eachRealty411Guide.com PAGE A9 • 2014 reWEALTHmag.com

Funding for Bay DealsPacific PrivMataerkMHonaenyfRealty411Guide.com PAGE 52 • 2014 reWEALTHmag.com

In today’s financial climate from Pacific Private The team at Pacific Private Money. having access to private financ- Money. The firm’s ing is crucial. So how can real founder says they ac- • For private lenders, staying local pro- estate investors become better tually make advanced vides efficiency in lending, can reduce at attracting private money, and draws to begin con- risk, and helps build their communities landing attractive hard money struction, in contrast • Upgrade your website every couple of loans today? What best practic- to most banks, which years to stay on top of trends es and tools can investors adopt work in reverse and • Despite lunar leaps in technology, today for maximizing their time, make borrowers shell computers can still be best leveraged for and finding the capital they need out their own cash creating Credibility Packages and making first, and then request presentations to attract private money.Ito fully capitalize on the opportu- draws. nities in the real estate market? The company uses two websites – Mark Hanf, co-host of The Best of In- In terms of how PacificPrivateMoney.com for its borrowervesting, every Saturday at 1 pm on AM910 tough hard money lenders are on approv- clients, and PacificPrivateInvestments.Fox News Radio, and founder of Pacific ing loans today, Hanf says “We are not com for its investor and lender clients.Private Money in the Bay Area, dishes the score driven, but we do want to get a sense The recently re-launched investor site411 on private money in 2014. for how a client handles their credit.” In sports a new, very web 2.0 website the case of real estate investors with expe- re-design. The New Private rience from the last boom who are eagerMoney Landscape to get back in, Hanf adds “We aren’t afraid So what top tips did Hanf have to offer of past foreclosure or bankruptcy, if they on navigating the design process?The hard and private money arena has have experience, and have been getting back on track.” “Elance (which recently merged withchanged dramatically over the last decade. even larger outsourcing platform, oDesk) Investors should still expect lenders offers very skilled freelance designersThe players are different, Dodd Frank has to be looking for some skin in the game from all over the world, with fees of 10% today, but Hanf is quick to point out that or lower than those of many statesideinstituted new rules and in terms of fi- “100% OPM financed deals are definitely agencies, but who can provide equally possible today,” detailing “one of the best great work.” However, the Californianancing: The mortgage market has almost ways to achieve this is smart use of lever- lender did note that offshore designers age with a hard money loan, coupled with typically need direction on copy editing.come around full circle. private investor money.” This can also be outsourced.So is it harder or easier to get a loan In particular Mark points to the use of Want more? ‘Gap Financing’, for which he says he In our interview Mark Hanf leakedtoday, and who might be needlessly sitting has a portfolio of private money sources some details from his new upcoming potentially available for those needing to book, The Insider’s Guide to Attractingon the fence when money is out there for fill the blanks. Private Money, available now via www. AttractingPrivateMoney.comthe taking? Quick Tips, Tools & Hanf’s guide will include a detailed Strategies for Maximizing 411 on how to put together a comprehen-Mark Hanf highlights the fact that many sive Credibility Package to score attrac- Your Efforts tive private money and fresh capital. vprivate and hard money lenders in business 7 Insights from the Northern California Private Money Lender… - Article by Tim Houghtentoday have only entered the market since • Facebook and LinkedIn are both ‘must- reWEALTHmag.com2008. This means most aren’t the “If you haves’ for branding today • Attend local Meet Up groups for con-can fog a mirror you can have the cash” necting with investors and private money partnersplayers of the boom of the early 2000s, • Real estate is a “Contact Sport”, requir- ing face-to-face interaction to build theand they aren’t bitter or too overly cau- ‘know you, like you, trust you factor’, and facilitate real deal makingtious from experiencing being burned be- • Work with a local lender who can help achieve “Realistic pricing, faster closings,fore like the bank down the street. Instead, and on time closings.”Mark describes the current landscape of PAGE A11 • 2014 lenders as “serious, and effective lendersthat have been providing the bulk of the fi-nancing to investors for the last six years.”Two years ago Pacific Private Money’sclientele was 75% flippers. Now Hanf saysthe San Francisco-based lender is making“more consumer loans, and is ever broad-ening its product offering.”One of the most exciting developmentsbeing unleashed is private money con-struction loans now becoming availableRealty411Guide.com

Wanna be a big boy?Now is the time to put your big boy (or big girl) shoes on andgrow your business model up. Do you, like many brokers, spend most of your time looking for a lending source? Are you chasing baddeals because you don’t know they‘re bad? Don't settle for being good at what you do, be the best by attending Pitbull’s next National Hard MoneyConference, October 16th in Fort Lauderdale. Presentations by seasoned lenders, brokers and serviceproviders will give you the invaluable insight needed to cut your learning curve in half. And if you already know a thing or two about hard money, there are still plenty of reasons to attend.Participate in our “Bring Your Deal” segment, where attendees are allowed to present a deal to the entirehouse. Deals happen. Network with investors, lenders, and vendors. Discover the advantages of becoming the bank, whichallows you to dictate points and spreads yourself. Sound daunting? It’s not. Sound liberating? It is. So, be a big boy or girl and grow your business model up. See you in Florida!NyoPHouiwtarbbriusdultslh’iMsnee3tso5ismtnmheeNotydoaetCpilouountpnay.floeurrebingcbeoy (or big girl) shoes on and grow October 16, 2014 Harbor Beach Marriott Resort & Spa Fort Lauderdale, FLwww.pitbullconference.com 858-736-7788

Network at Equity Trust University, pg. A9 David was so impressed with Equity University Wealth the energy and the quality of the Self-Directed Real Estate Building Summit Deals: It’s About Who You content that was presented; he The event provides 30-plus hours of real KnowEducation is just one component of success- did something he had never done estate and other alternative investmentful self-directed investing; the other is get- before as a keynote speaker: he education and provides access to 500ting in front of the right people. Getting to stayed for the entire conference, other investors.know those you might do business with and participating in sessions with alllearning from the experience of seasonedinvestors is paramount. the other attendees and absorbing September 19-21, 2014 as much information as he could. Omni Resort at ChampionsGate The Equity University Wealth Building Orlando, FloridaSummit draws more than 500 investors from Registration for the Wealth www.equity-university.com/summitacross the country; some of them experi- Building Summit is currentlyenced veterans, others relatively new to open, and spots generally fill upthe concept. Many of these investors eitherhave an investment in mind and are short on quickly.capital, or have capital but are not yet surewhere to invest it. For more details and to register, The Summit offers a place for both types visit www.equity-university.com/summit.of investors to connect. Throughout thecourse of the weekend, there are several “We were extremely excited to have met him, and the only way we couldopportunities to connect with as manyinvestors as possible. A popular conference have done that is because we were here.” vmainstay, Speed Networking offers a speeddating-like setting, giving attendees the Arizona Investmentopportunity to meet dozens of new contacts Properties Madein one sitting. The potential for new connec- Better with FirstBanktions is multiplied, as this session is offereda few times throughout the weekend. The Here are some examples where FirstBank is moreevent also offers breaks in between educa- flexible than many lenders:tion sessions and designated vendor display • Condominiumstimes to allow attendees to meet more • Non-Conforming Propertiesinvestors and service providers to help them • Large Number of Financed Propertiesdiscover new opportunities and solutions for • Lack of Reservestheir investment needs. • Recently Flipped Properties If you live in the Phoenix Metro area, come visit Summit Wows Bestselling us at one of our 14 convenient locations. Author efirstbank.com Attendees have expressed that there isalso a less tangible benefit of attending Member FDICthe conference. Once they leave the event, they’re motivated like never before to takethe vast amount of knowledge and take-home strategies that they gained and actuallyapply them. The conference’s 2013 keynote speakerechoes the attendees’ sentiment. “Last year I had the absolute pleasureof working with Equity Trust to deliver akeynote presentation to their 500-plus at-tendees,” says financial expert and nine-timeNew York Times bestselling author DavidBach. “The energy and enthusiasm of thosethat attended was simply incredible. Youcould really feel the sense of community atthis event that Equity Trust has built over theyears.”Realty411Guide.com PAGE A13 • 2014 reWEALTHmag.com

FirstKey LendingOffers InvestorsUnique Options by Tim HoughtenYou Asked, They Listened: FirstKey Offering More Randy Reiff, CEO of FirstKey Lending Ways to Finance Your Investments. FirstKey Lending has closed, FirstKey Commercial In early 2013, New York-based FirstKey Lendingwas the first to step into a new financing space – or is in the process of closing, Bridge Loan Features:making capital accessible to small- and medium-sizedinvestors in one- to four-family residential rental approximately $500,000,000properties nationwide. worth of loans, including Loan Amounts: $1M to $25M The financial firm’s Chief Executive Officer, Randy the following representative Rate Type: FloatingReiff, says the firm purposefully positioned itself to“invigorate the small and middle markets” and to “em- transactions: Loan Term: Up to 3-yearpower smart, entrepreneurial investors to build andoptimize their portfolios and businesses.” $842,000 Property Type: Commercial (including office, retail, multi- The financial backing of Cerberus Capital Man-agement, L.P., one of the country’s largest private 23 properties family, industrial, self-storageinvestment firms, gave FirstKey the opportunity to located in PA and flagged hospitality assets)hit the ground running while focusing its attention ondeveloping the products its customers needed. Loan-to-Value: Up to 75%* Following the successful introduction of its Portfo- $1,659,000 FirstKey Investor Portfoliolio Premier fixed- and floating-rate loan products forlarger investors needing $4M to $500M in funding, 41 properties locatedFirstKey launched its Investor Portfolio Express loanproduct for investors seeking loans of $500,000 to in TX, OH, GA Express Loan Features:$4 million. That product was developed to simplifythe closing process and reduce cost when dealing $9,750,000 Loan Amounts: $500,000 to $4Mwith smaller transactions. “We’re very excited about 85 properties Rate Type: Fixedthe market’s response and the potential our Investor located in CA Loan Term: 5- and 10-yearPortfolio Express product, through which we have Property Type: 1- to 4- familybeen able to introduce a cost effective and simplified $18,500,000 residential including condosprocess by streamlining documentation and closing,” 340 properties and townhousesReiff said. located in FL, GA Loan-to-Value: Up to 75% Amortization: 20 to 30 year These Investor Portfolio Express loans offer $52,000,000 Interest rate: Competitive pricinginvestors reduced borrowing costs and a much moreefficient process than was previously available to 583 Properties located For more information, pleasethese owners so that they can buy additional one- to in GA, NC, TN, TX, MS contact Dennis Cisterna at:four-family properties, refinance their existing debt or 619.743.8215cash out. In recent weeks, the company has also begun to rollout two additional products to support entrepreneurialborrowers: Investor Property Express is the first of its kind,offering individual loans of as little as $75,000 upto $1 million per individual residential property,depending on the number of units. What makes theseRealty411Guide.com Continued on pg. A18 PAGE A14 • 2014 reWEALTHmag.com

FirstKey Lending – invested in your success.Ready to grow your residential rental property portfolio? You need a lender you can trust.Backed by one of the world’s leading investment management firms, Whether you own five properties and you’re looking to free upFirstKey Lending, LLC offers innovative financing solutions from cash to grow your portfolio or you own 5,000 properties and you’re$1 million to $100 million, specifically designed to serve owners of looking to refinance existing debt, FirstKey Lending provides themultiple single-family rental home properties throughout the U.S. flexibility you need with the professional service you expect. Here are just a few examples of indicative transactions:$18,500,000 $28,000,000 $32,000,000 $10,500,000 340 properties located 515 properties located 450 properties located in FL, 90 properties located in FL, GA in AZ, FL, GA IN, MD, MN, NC, TX in AZ$9,750,000 $9,000,000 $5,000,000 $1,734,000 85 properties located 157 properties located 144 properties located 48 properties located in CA in SC, NC, GA, TN in GA, IN, MI in TX, OH, GA$1,659,000 $2,900,000 $23,300,000 $6,785,000 41 properties located 40 properties located 215 properties located 254 properties located in TX, OH, GA in GA, OH, TX in CA in INIf you’re looking for a lender that’s invested in your success, call 1-855-299-1944to speak with a FirstKey Lending expert today or email info@firstkeylending.com. www.firstkeylending.com© 2014 FirstKey Lending, LLC. All rights reserved.

JasonHartman.com Leverage the Rental Market, pg. A5 The Complete Solution for Real Estate InvestorsTM ingly migrating to mortgage Transparency and Cost lenders that are happily So you love real estate... delivering it to them. Efficiency.” but you hate management? In addition to predictabil- Easy to say, but how arePassive Income 12.25% ity in longer term financing, First Trust Deeds they are prioritizing sim- those promises being evi- plicity, transparency, andWe have access to very unique \"insider\" integrity demonstrated via denced in the loan applica-private lending opportunities. You’ve never sustainable lending practices.seen hard money lending like this before. If tion process?you have $100,000 or more to invest and you Considering the interestwant conservative, diversified, quick-turn, in its new loan programs For one, B2R Financenon-pooled investments that repay in about that B2R Finance has beenfour to six months contact us for details. Our accumulating, they must be does not charge lenderprivate lending program is simple and proven. doing something right.The simplicity of our private lending program legal fees to its borrowers.is unmatched. Visit www.JasonHartman.com Pressed on what has beenor call 480-788-7823 today. behind the success of B2R Elsewhere those fees rou- Finance, aside from the sheer Listen to The Creating Wealth Show, availability of liquidity in a tinely add up to $25,000 in Jason's Highly Acclaimed Investor Podcast: way it hasn’t before, John Beacham points out what borrowing costs. B2R’s loan CW 274 - he feels has really helped Fiscal Hangover & Global the firm stand out on the document package is also Change with Keith Fitz-Gerald lending landscape… This is innovation in developing a shockingly brief, at around CW 273 - client-centric model, built The Decline of the EuroZone to serve. At B2R that vision a lightweight 20 pages. means; “Simplicity, Speed, with Alasdair MacLeod Stack this up against the CW 269 - immense volumes of paper SWOT Analysis of Income Property, most normal homeowners go Facebook IPO & Case Study through to just finance one home, and the fact that B2R Finance clients are frequent- ly borrowing $5M or more, across hundreds of homes, and there is no denying there is something different about this lender. > See terms of service at:www.JasonHartman.com/terms Podcast Amin Noorani | Amin@PrideofAustin.comRealty411Guide.com PAGE A16 • 2014 reWEALTHmag.com

Under Beacham’s manage- focused almost exclusively BEÊTHEÊBANK.ment the lender has financed, on assisting single familyor has in process, loans closing rental portfolio owners to SAFETY.ÊSECURITY.ÊDOUBLEÊDIGITÊRETURNS.in 30 U.S. states. Not too access their pent-up equityshabby for a startup in a highly via refinancing. The newest EarnÊconsistent,ÊpassiveÊincomeÊinÊcompetitive industry, though addition to the lineup of op-billions in capital and an tions now provides real estate yourÊportfolioÊutilizingÊPRIVATEin-demand mortgage product entrepreneurs and serious LOANSÊandÊTAX LIENS.has certainly helped. From investors with credit facilitiesapplication to funding the fi- beginning at $10M to expand Ênancial firm is routinely seeing with new acquisitions, rehab OurÊfreeÊgiftÊtoÊyou:ÊTheÊMMGÊCapitalÊclosings happen in 30 to 45 properties as needed, and get GuideÊtoÊTrustÊDeedÊInvestingdays, with one recent notable them performing. In addition Êdeal funded in just 20 calendar to funds to buy and renovate, LogÊontoÊMMGInvestors.comÊforÊdays. This is virtually unheard B2R Finance also aids clients moreÊinformation.of when it comes to financing in establishing a capitalmultiple income properties expenditures reserve accountsimultaneously. for negating any future main- tenance surprises. Exclusive Breaking NewsDuring the exclusive interview, This clearly opens upBeacham granted Private many new doors for investorsMoney411 readers the treat of seeking to fully capitalize onbeing among the first to be in- the current opportunities attroduced to a brand new buy to hand and empower them torent loan product being rolled navigate the market swiftly,out by B2R Finance. profitably, and with confi- dence. Previous funding had been vRealty Capital Lending GroupPrivate/Hard Money for Flips & CommercialAs one of the premier real estate investment resources • Quick and Efficient Closingsin California, Realty Capital Lending Group, Inc. (RCLG) • Qualifying is Easyendeavors to provide investors with the tools and • Financing Available Up To 90% of Purchase Priceinformation needed to succeed in an ever-changing real • Rates From 9.99%estate marketplace. We specialize in providing Private • 12-Month TermsHard Money Loans to entities and individuals who cannot • Discount Points From 2%obtain conventional financing from traditional lending • Wholesale Opportunitiesinstitutions. We collaborate with Money Individuals and • Commercial structure loans $1 - $100 millionBrokers worldwide. We work directly with Borrowers • 3-year fixed on rentals startinginterested in real estate investing and provide quick and at 7.5% stated income.efficient closings. For Trust Deed Investing count on us for Visit our Websiteimmediate solutions and earnings www.RealtyCapitalLG.comOur team members are geared toward optimizing your BRE Lic# 01957506 Enrique “Rick” Perezsuccess, and assisting you in achieving your financial 8132 Firestone Blvd Ste (310) 308-7425objectives. Whether you are a Fix and Flip Investor, Trust 824 Downey, CA 90241Deed Purchaser or a Wholesaler, the right combination of RickP@RealtyCapitalLG.comsuccess and resources are here for you. To find out moreabout RCLG and what we can do for you, Contact Us at(310) 308-7425.

Unique Options for Investors, pg. A14loans unique is that they Reiff said that FirstKey to the financing they need to Still, Reiff says innovationare secured against single has seen strong demand for grow, and we’re here to make is in the blood of FirstKey,properties. Reiff described its products and only expects sure that they can develop their which is committed to con-the new loan program as “a that demand to increase. “Our portfolios.” stantly optimizing its currentnatural expansion” of the business is accelerating as FirstKey couldn’t have had product and creating newcompany’s efforts to serve more and more customers – better timing in coming to programs to meet the needsall types of single-family most of whom have historically market with a lineup of new of its customers. “Entrepre-rental property investors. had only limited access to these mortgage loan products aimed neurial borrowers value flex- Under the program, types of financing – are ex- at the small and middle market. ibility, whether they own oneFirstKey does not place posed to the variety of products Looking to fill the void in property or 5,000,” he said.any limits on the number of FirstKey offers,” Reiff noted. affordable investment hous- “We are proud to be a marketproperties a borrower may “The majority of our target in- ing financing, FirstKey has leader in tailoring productsown that are financed by vestors in the one- to four-fam- provided the fuel for real estate to their unique needs. Weother lenders. That contrasts ily rental finance market have investors to make it happen. recognize the importancesharply with limits imposed historically been unable to In addition to the successful of excellent service and areby Fannie Mae and Freddie avail themselves of affordable launch of the Investor Property highly focused on deliveringMac, which allow borrow- financing. We’re very excited Express and Investor Portfolio just that. It’s not enough toers to hold a maximum of to see that number grow as that Express loan products, First- simply offer debt solutions.10 and four financed one- market continues to expand.’’ Key continues to be the market We also need to ensure thatto four-family properties, Reiff continued, “There’s leader in its Portfolio Premier our customers are comfort-respectively. The Investor been a lot of focus recently on loan products that are geared able with the process and canProperty Express loans are the very large investors in the toward larger investors as well. choose a product that is besta 30-year, fixed rate product one- to four-family residen- suited to their needs.”and require a minimum tial rental properties, but it’s Ingenious Loans for Surely there will be morecredit score of 620. important to remember that Smart Investors... to come. FirstKey Commercial the largest segment of this FirstKey clearly offers some Want to know what First-offers customized bridge market is represented by the Wetpiroolnegsrn,epdsosisoviteniofinndianingscttirhneegslsesoneldude-r Real KtEheesymtacoatunetdoIonnlfvioneresy, otomur,?ReCenhiftefsck!loans from $1 million more entrepreneurial ownersto $25 million for use in who may have as few as 10 as the vanguard of the new suggests, “Bring us your port-purchasing, refinancing or properties or less. These own- mortgage capital landscape. folio, and let us help evaluaterepositioning commercial ers typically have strong ties your options.” vproperties such as office, re- to their communities and aretail, multi-family, industrial, looking to grow their portfolios Two NEW Rehab Loan Programs, pg. A7self-storage and flagged in a disciplined fashion over • Properties with inspection clients are operating in. hospitality properties. time. They haven’t had access issues Additionally, Todd Pigott explains where there isUnique Market Unique Media • Single and small real distress, investors areINSIDE: Find the Funds with PrivateMoney411 – Special Supplement We specialize in reaching multifamily properties with adding real value, and are affluent and accredited inves- Stop Work Notices and permit not artificially pumping up Print • Online • Network 411 tors with our unique brands. issues the market. This means both Realty411 produces multiple sustainable lending, andwww.realty411guide.com | Vol. 5 • No. 1 • 2014 A Resource Guide for Investors publications to reach differ- ZINC Financial can lend sustainable investing, as well ent segments of the investor on properties that other as solid home price growth. The Future companies simply can’t. of Real Estate In fact, Pigott says when it How to Ink Your comes to approving loans “the Next Deal with ZINC population, all while creating more distressed the better,” PProRgOraGmRAHMigHhlIiGgHhtLsI:GHTS: a variety of pricing options for and “if it has a floor, roof, and Modern City by Vladislav Kochelaevskiy VFienlodcoi•••tu••yLNNtNNoooaooamnPPnPPrrAoiedrrmm-eiPmra-aoeBPrayuymanrauyRtyesebmyRnustoipeedPasnueetointnndtcPa$edelte4ntihen0cHseae0!l,ot0ie0lsd0!* sofioSnnmaornmiesckewe,moiZto!iI”dgN hiCtnsFbe eientwtahneicsefidnoaaaelsrwsstrpeieaeg’ekralonsilnleggedr asjtmauoRh2stett5ret0pch9a:a/l.b/lw••••B•••••dLPLSRfTowrUPLRSoahiVorooiohortpan:epwareoiatktsn6ttersn:roicntTe5ts.cvs1emZit%Ta8rnr2slvPmer5got.Iyyatars5%ou.rNmirBr:unynPot–8rfi.loitno(bCeBd0gs1Pfr5gag%r4mmrPulsifeed5%o1eaiapuagFuniot9smrisitsetofcenoae)snehapaFsn$uatins3wio8rncs1eccoei20ae0enhnib0nng.aa6s0ws,c*sil0lt%-eieei.n0annbpg0rsr*eeiiectt:ee Men in Black: SPEEdiCtioIAnL! our valued advertisers. this as providing a despeinravteeslytors! also welfocropmricein.g information Stephan Piscano, Realty411 is unique, contact CEO of ListedBy.com 1/29/2014 11:30:23 PM us to learn more about our and Kent Littlejohn, creative marketing campaigns. Vice President of ListedBy.comVol5No.1.indd 1805.693.1497 needed, high-value service FINANCIAL, LLCinfo@realty411guide.com Hard MfoornbeyotWh hinovleessatloerLse,nadnedr the Fcuonmdinmg autnHiitgihesSpteheed!ir investorRealty411Guide.com PAGE A18 • 2014 TEe qleupithyoBnaese5d59Le.3n2di6n.g25W0 9holFeasxal8e6D6iv.6is0io2n.8•89C2alizfoinrncfiaina•nAciraizl.onneat reWEALTHmag.com This information is for use by mortgage professionals only and should not be distributed to the general public. All loans are made in compliance with Federal, State and Local Laws. This is not a commitment to lend. Loans made or arranged pursuant to a California Lender’s License. Loans made or arranged in Arizona must be represented and originated by a mortgage broker qualified to do business in that state.

Join Us to Celebrate Our NEW IssuesRealty411 Hosts a Series of FREE ExposLAS VEGAS - Realty411 Expo & Conference Texas - Rio Grande Valley Real Estate ExpoEducational Property Tour on Sunday. Our network purchased over $5M in real estate.October 4th & 5th - 9 am to 5 pm September 27th - 9 am to 5 pm in McAllen, TXNew York - NYC Real Estate Expo - Part II California - Giving Thanks / Giving BackOur 2nd Real Estate Expo in NYC this year. Help us feed the homeless in Los Angeles.October 25th & 26th- Starts at 9 am - 2 Days! November 15th - 9 am to 5 pm - Charity EventVisit Realty411Guide.com/events for details. For information, call: 805.693.1497 A Special Realty411 Publication Money411PRIVATE Vol. 1 • No. 2 • 2014 Meet Mark Hanf CEO of Pacific Private Money Vol5No.2.indd 57 8/8/2014 7:45:50 AM

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Miracle of Wealth with Steve Down, pg. 42work all by yourself is far over rated. and coaches? Steve: What best quali-Linda: Some readers cannot make it fies me is that I do whatto your next presentation. How can I teach Monday throughthey get further information? Friday almost every weekSteve: They can call our Chief Invest- of the year and then Iment Officer, Susan Knight. Susan will love to teach what I do onspend a few minutes to share the overall weekends. Linda, as youproject and then determine if you qualify know, I give away most offor a personal interview with me. She my education materials.can be reached at (801) 949-0962. Linda: In contrast, many The Falls Event Center in St. George, UtahLinda: Do you have something specialfor our valued readers? so-called real estate gurus make mostSteve: Absolutely. They can downloada free copy of The Miracle of Wealth of their money selling their seminars,that will forever change the way theyinvest. They can go to: miracleofwealth. books and audio programs. So, what Linda: How can REIA directors getnet and download right now! is it that you offer? Or more simply more information about you and bookLinda: Before I wrap it up, I haveto ask the tough question in back stated, what’s the catch? you as a speaker?of everyone’s mind: What is it thatbest qualifies you to coach real estate Steve: That’s a fair question. I teach a Steve: REIA clubs and directors can bookinvestors when the marketplace is al-ready crowded with real estate gurus philosophy I’ve developed called The Mir- me for a webinar or seminar through acle of Wealth. But what’s most unique Scott Moyes, President of the WAREIA is that I apply The Miracle of Wealth (Wasatch Area Real Estate Investment philosophy to real estate. Association). He can be reached at (801) Also, I may invite a certain number of 688-2255. accredited investors to participate with me in the transactions that I structure. Linda: Thanks for your time, Steve. vThe MidwestInvestin Become a Partner with HomeReplay • Where the housing market is “Best Buy for the Dollar” in the United States • Lower cost of doing business and Lower Tax Rates than the West and East Coasts • Come and invest where the “American Dream” is still alive!HomeReplay, LLC “An Award-Winning Property117 South King Street Restoration Company”Xenia, Ohio 45385 Visit us at www.HomeReplay.com

OC REIA NourishesbyStephanieB.Mojica Investors in KaarenHallWantstoOrange County TradeBusinessCards with YOUAmericans face a multi-trillion from the misconception that retirement In fact, she has a whole group of dollar gap account savings, and performance, are out people that want to help you… between what of their direct control. they’ve got, A little short of two years ago Kaaren and what they Kaaren Hall, President of the Orange received a call from the NRIEA (National need to retire. County Real Estate Investors Association, Real Estate Investors Association). Worrying about finances in has found a way to take control of future They eagerly wanted her to head up anretirement can almost be as bad for financial needs, and start enjoying life Orange County, Calif., chapter of thethe health as not thinking about it now. And she’s doing it tax free! organization. She wasn’t so sure sheenough. Both extremes often come wanted the extra workload at the time. So what investment tools is Kaaren using that make her so confident in her Attending a following NRIEA financial security, and how can more meeting, it was announced on stage individuals get their hands on them? that the new President of the OC REIA chapter had been selected, and was in the room. It was Kaaren. Who could turn down that opportunity? Now the regular area investor meetings are a lively gathering of new to fabled veteran investors alike. Those that have attended will have discovered highly profitable networking, and live deal making in progress, with great speakers offering insightful education sandwiched in the middle. Asked how she justifies the ROI on time in offline contact in this new digital age Kaaren insists “You can’t replace in person interaction,” and “while we’re big on Facebook and LinkedIn, there is no substitute for connecting in real life.” The OC REIA President describes the association’s events as “a great place for those with money, seeking deals, and those with deals, seeking money, as well as a source for quality referrals.” In a nutshell – “It’s a growing community eager to share and help each other be successful.”Realty411Guide.com PAGE 78 • 2014 reWEALTHmag.com

? Kaaren’s Top Tip on debt, raw land, and units of syndications Maximizing through their self-directed retirement plans uDirect real estate experience, Kaaren Hall has as- Networking ROI rt in the Allow a couple of weeks for rolling ucation. sistTedheheSr encatrioentwitdeo bSalseeeopf iclniegntWs efolr l “Bring your business cards, and over, or setting up your new IRA odian to maSnhyey(iseaaanrlssd.o pRreestidierntianngd fBoeuntdtereorf)uDi- more importantly have a goal,e and ed- and bring questions.” If you come Investors must use third partyaccounts rect IRA Services LLC, and speaks at many focused on solving something, ‘custodians’ or ‘administrators’ to executeng a self reaSl oeswtahteactliusbKmaeaerteinng’ss asnedcreevtetnotsbteoinegdus-o and have specific questions, you’ll their investments, and maintain tax derstand successfully find solutions. benefits ustodian catlemthaebpouubt lricetoirnemhoewntt,oaunsde bselifn-gdiarebclteedtoess. This 401k plans change all that. Use self-directed IRAs to invest inust. IeRnAjoyaclciofeunmtso.rSeh, eriigshat nsoouwg?ht after expert They also offer tax deferred, and tax what’s best for youets, proj- in MtheosftieOldCaCndalhifaosrnaisasirseteadl ensattaiotenaplroresal to grow eiansrgteatapenrdoexbapacebcroltysunwatlsirt.ehTatdhhyeeisareworvwairnceedoaefnaldHsfaterluel’scstaurrree-al free investing and portfolio growth. All It doesn’t require a mathematical genius real es- tphaessaisopne:cStseltfo-Dcoirnescidteedr IwRhAens.cThhoeosseinngifaty without having to be overly creative, to deduce that benefiting from tax deferred precious cliuttslteodiniavne.sHtmaveintgvaechceicssletsoathre wexhpyersiehnece mastermind complex networks of offshore and tax free investment returns and growthme of the shelters and secret accounts, or break the can deliver double digit plus perks, versus aisnnd’tknswowealetdingge irsethireemadednetd, vaanldueawreitwh hthaits law, and get on the IRS’ hit list. those forking out a major slice of the pie you are ceonmabplaensyh. er to live in the moment, with to the tax man each year. , you’re mcooAnthffitederreonmfctaewn. oy years of Hall being a busy UDirectIRA.com ne else’s and traveling throughout the While each investor’s results willge Com- staFteorofthCosaelifnoornt iyae, tliffaemhialisargwotittehn thmeuch Kaaren Hall’s first passion (besides be different, Hall told one of her mostwareness einacsireerdnibolwe thaaxt mheirncimhiildzrineng,aretoulrdner. This her family), and what led to the NREIA heartwarming client success stories careful, seeking her out to be their president, recently was a lady that got started with able. So amllaoxtsimfoirzminogrepotiwmeraonfdseexlpf-adnisrieocnteodn edu- is helping others take control of their just $3,000 in a self-directed Roth IRA.ply help- creattiinregmtheentpuabclciocuonntsh,aKrnaeasrseinngstuhme csotnhteroml retirement finances. Investing just a portion of this startup nal links loucoofpnTntghahtesereroirbrleaeootiawnfrtnhegyeormtiehurtaerionrer“ryeimugteliietmrnniematpmlflaoujetoytenubetrteeoflsisoon.cwlaafhntoiocorenatssar.e”kainnnodg retirement fund in a real estate option areWlohoaktinkgeetopsromlloovsterawtheaikre4a0t1(nki)g.htSoisme As the founder of uDirect IRA Services, quickly returned her $20,000. This is thewhere to which provides self-directed IRA setup beginning of a rapidly growing nest eggntentions ifnedairvinidguathlseyarceanlo’toskainvge etonoruogllhovteorstfarocmk and services Kaaren has been living out that will grow tax free for life! qualifies this mission. uDirect’s account-holders tuhpeiar seumffpicloieynetr npelsatnesg, ga, nodr thsealtf-tdhieryected have over $200M in assets. Find out more about self-directed This is IeahmRdnaaudAvnce’tasahtvgeeaiiedrrrretsfuoaaawnmnlliiioyllnlypn.ptoioloradncyeorftnohtrtoerpiorbelerooetptfteliehrreottmohweebimnrectoloifnvmueenesyds IRAs and get your hands on your wise to inTthhee moldarskaeyti.nSgetlhfa-dt ikrneocwteldedIgReAiss paonwder The 411 on Getting Started with Self- complimentary copy of “8 Best-Kept ver your Directed Retirement Accounts: Secrets About Investing With Your IRA” atanies are www.uDirectIRA.com, or get along to the to guide Even those just starting out can build next Orange County Real Estate Investors our self- wealth quickly making micro-loans within Association MeetUp. IRAsgov pub To learn more about OC REIA visit: ines and In addition to rentals and flipping http://ocreia.com Hall. houses, investors can invest in mortgageRA.com, rce loca- is obviously visible now to many, due to PAGE 79 • 2014 reWEALTHmag.com re many HReaalltly’4s11hGauridde.wcoomrk and sharing of h er years ert their of experience with every day people who can benefit from it the most.

legal Think You Will Never Be Sued? Think Again! By Randy Hughes A burglar sued the store he broke into aka Mr. Land Trust (and won a judgment) because he fell through the suspended ceiling while break- Some people are ing in, and injured himself. language is ambiguous. Better safe than interested in living a sorry, right! quiet life unobstructed The owner of a company settled a slip by others. They have and fall claim from one of his employees. More Insurance Tips few assets and just The next week he was sued by 11 other em- to Remember want to be left alone ployees who happened to “slip and fall.” by the “sharks” in the 1) If insuring property make sure all world. Receiving a phone call during A wealthy doctor was sued by his girl- buildings are listed. Don’t forget to list the dinner hour soliciting magazines friend because she developed a cold sore on the shed or out building on the property. is considered an invasion of their her lips after going out on a date with him. privacy. He settled for $50,000 and immediately be- 2) If buying liability coverage, make Other people have substantial gan implementing an asset protection plan. sure the wording is from a Commercial assets to protect. They own busi- General Liability policy form (provided nesses, investment property, live A fireman brings suit against an investor in most states by the INSURANCE SER- in nice houses, have teenagers that for knee injuries brought upon him when VICE OFFICE general forms). You don’t drive, drive expensive cars and hire kicking the door down to respond to a fire want a PREMISES LIABILITY policy or employees. alarm call to the fire department. form of coverage provided by an Excess Most of the time when you think & Surplus Lines class of insurance about asset protection you can’t ex- A woman brings a liability suit against company. clude privacy issues. While becom- an emergency room doctor, alleging while ing more private is relatively easy, the doctor was using a tongue depressor to Now that you have all the insurance protecting your assets is not. In fact, examine the back of her throat, that he stuck that you can afford, realize that this is if your goal is to protect your assets, his tongue into her mouth. The complaint NOT enough to protect you and allow you MUST become more private. actually read as such. you to sleep well at night. Insurance In this article I am going to discuss policies are full of “exclusions” (read: both Privacy and Asset Protection Recently the New York Times ran an you have NO coverage). And, once your as if they were one in the same. It is article entitled, “Lawyers Who Sue to Limits of Coverage are exceeded, your my opinion that you should integrate Settle.” The article pointed out that there is insurance company will bow out of your privacy and asset protection tech- a sub-species of lawyer that exists solely to claims. You will be on your own to de- niques into your daily life in order to “blanket the business world with hundreds fend yourself in court and pay any judg- be more successful at living free. of lawsuits at a time, often making claims ment above your insurance policy limits that appear fanciful, even absurd.” These (assuming you even have coverage). Still Think You Will lawyers make their money on settling cases Not Get Sued? prior to trial (cases that they never intended Continued on pg. 106 to go to trial), paid by defendants that want A family sues the Weather Channel to make the lawsuit “just go away.” reWEALTHmag.com for not forecasting the storm during which a family member on a fishing These lawyers call themselves, “bounty trip drowned. hunters.” One interviewed lawyer said that it is his “job to go out there and hunt these A man sues six bars and liquor people down.” stores and the electricity company because of injuries he sustained One critical part of a defense system when, while drunk, he climbed over is to buy the proper liability and property a fence with a locked gate and scaled insurance. an electrical tower. It is better to have more coverage than needed. A little tip as well --- the broader the contract language in your insurance policy the BETTER position you are in at time of interpretation. The courts are typi- cally more in favor of the insured’s position rather than the insurance company if the Realty411Guide.com PAGE 80 • 2014

America’s Top Attorney legalon Combating Realty FraudReal estate fraud is alive and by Tim Houghten | Photograph of Philip Boesch kicking. Many industry ex- perts anticipate real estate ing number of individuals scale up their invest- scams and legal issues to ments in real estate. Unfortunately, this often goesescalate in tandem with the new hous- hand in hand with opportunists seeking to takeing boom in the U.S. advantage of the market, resulting in the rise of real estate and mortgage fraud. Sadly, barely a day So how can investors at all levels seems to go by without another real estate mogulenjoy sustainable investing, fend off or industry worker being indicted or sentenced forrisks of fraud, and better fulfill their their part in these scams.goals of solving the issues they care about themost? Hop onto the most popular online real estate investment forums and a festering pool of potential The Emerging Fraud Boom fraud can be found. Here new investors looking for short cuts are often misled by poor information, and othersMedian existing home prices rose 11.5% last year, according boast about how they fooled the banks and got away with it.to the latest data from the National Association of Realtors. At the same time, the surge in new real estate crowdfundingNAR forecasts the median price of a new home will hit portals is set to make navigating the investment industry even$289,700 by 2015. Based upon global, historical housing more complex.cycles, the new U.S. housing boom phase should last anoth- So how can real estate investors avoid being victimized byer seven to 15 years. As the momentum grows during these scammers, become unwittingly involved in fraudulent practic-periods, more and more Realtors get their licenses, lenders es, and prevent temptation? What should they do if they feelhave to work harder to compete for business, and an increas- something isn’t right? Ledgers, Lawyers & Liquidity Who better to ask about legal protections from real estate fraud than America’s top legal eagle? The Boesch Law Group in Los Continued on pg. 82Realty411Guide.com PAGE 81 • 2014 reWEALTHmag.com

America’s Top Attorney on Combating Fraud, pg. 81Angeles, CA has been ranked one of the top 2% of law firms This goes beyond just an experienced real estate and busi-in the nation. The Boesch Law Group, and founder, Philip W. ness attorney, to include tax advisors, financial planners andBoesch Jr. have been involved in landmark cases including wealth managers or business consultants too. Having multiplethe Michael Jackson wrongful death case. He won the “Num- sets of veteran eyes review and evaluate the strengths of a busi-ber 1 Judgment in the Nation”, in the Anna Nicole Smith ness plan or financial projections can help identify and avoidcase, and he and his firm have achieved unmatched success in potential cash flow challenges and alert individuals to optionsbusiness and commercial litigation. The firm has successfully which could increase the potential of success.handled many challenging and complex real estate problems. On the most important first steps to take for those believing In a recent telephone “under-performing assets, combined with poorinterview, Boesch pointedto “underperforming assets” liquidity and poor expectations” are frequentlyas the #1 underlying issue inmany of the legal cases being the root cause of cases where fraud is alleged.”brought to the firm.Boesch explained fur-ther that “under-performingassets, combined with poor liquidity and poor expectations” they may be victims of fraud, Boesch recommends exercisingare frequently the root cause of cases where fraud is alleged. rights to “review books and records” including the “generalWhen expectations aren’t met, and promises aren’t delivered ledger and any available accounting software downloads suchon, many pursue unsustainable short cuts. These short cuts put as from Quickbooks.”many on the fast track to nowhere but the court room. Many real estate project and investment opportunity pro-When asked what the single best defense to avoid the moters and organizers may not want this information on publictemptation of committing fraud or becoming victim to it was, display. It is wise for any investor to lean towards opportunitiesPhilip pointed out the value of an “experienced team for vet-ting plans and reviewing prospectuses, up front”. Continued on pg. 110B!!ld !!!l!h !! !!!! !!ti!!m!!! !!!tf!l!! !!!h ! S!l!-D!!!!!!d IRA P!!!!!! !!!! !!!!!!m!!! !!!!m! b! !!!!g !!!! IRA !! 401k !! !!!!!! !! !!!l !!!!!! !!d !!h!! ‘!l!!!!!ti!!’ !!!!!!. OPEN AN ACCOUNT FOR FREE!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!www.iraservices.com/realty411T!k! !!!!!!l !! !!!! !!ti!!m!!! !!!h ! !!ll! !!g!l!!!d S!l!-D!!!!!!d IRA C!!!!d!!! !h!! h!! !!!! 30 !!!!! !! !x!!!!!!!!, !!!!!d!! !h! h!gh!!! l!!!l !! !!!!!m!! !!!!!!! !!d !ff!!! !h! l!!!!! !!!!!d!!l !!!! !! !h! !!d!!!!!. PO Box 7080, San Carlos, CA 94070 1-800-248-8447 · www.IRAServices.comRealty411Guide.com PAGE 82 • 2014 reWEALTHmag.com

By Marco Santarelli, CEO of When Is theNorada Real Estate Investments BtoESBTuyTIDMeEals?Alot of people ask me, “When should I buy? What part of the real es-tate cycle should I buy in?Should I buy in a down mar-ket? Are the values going tokeep going up/down? Whenshould I buy and where is thecycle right now?”But these are the wrong questions to .You want to find the ther under market value and/or that will Copyright: Shawn Hempel / 123RF Stock Photoask – it’s not “WHEN should I buy?” produce the highest cash-flow return onIt’s “WHAT and WHERE should I biggest possible ratio you your investment. If I have to choosebuy?” In other words, you should can find. That means you between cash-flow and equity whenalways be buying NOW. want to look for areas buying passive real estate investments, with lower prices and I recommend going for cash-flow. If There is always a place, somewhere higher rents. There are you start off with good cash-flow, thosein the country that is either appreci- areas where you can find profits can often outstrip the equityating in value or is an undervalued low prices, and there aremarket. And the reasons may be local areas where you can find .build up — and do it in a few shorteconomics; it may be demographics, high rents, but there are usually only aor it may be related to FEW areas where you can find BOTH years. (Of course, this will vary be-its location. Maybe low prices and high rents. Those are the tween markets and market cycles.)it’s because the pop- areas to take a closer look at.ulation is growing in Generally, you’ll want an R/V ratio It is possible to find property that willthose areas, or maybe of 1.0% or more. You can still purchase provide you both if you know whereit’s in a town where a property with a ratio as low as 0.7% and to look. Remember that markets arelarge industry is mov- generate positive cash-flow, but it’s best never static, and change slowly enoughing in. For example, to find an R/V ratio of at least 1.0%. that you can identify them with a littlethere are markets (like Look for property you can purchase ei- effort.North Dakota or theEagle Ford shale in Continued on pg. 110south Texas) wherea large number ofoil companies areexpanding, creating alarge number of newjobs which creates aneed and demand formore housing (purchase and rentals). Those are just a few things to lookfor in a good market. But one of the most importantthings to look at in an investmentproperty is its income. This is mea-sured by looking at the property’s netcash-flow, but a quick way to do thatis to look at the Rent-to-Value Ratio(or R/V ratio for short).Realty411Guide.com PAGE 83• 2014 reWEALTHmag.com

Big Money in Conquering Your Fear:Here’s How to Do It! by Matt Theriaultmoney!” learn how to conquer it, the big money you virtually eliminated from a person’s life. seek will forever exceed your grasp. Then why does fear still stop us? The an-I will. Through my own personal experiences swer is simple. Whether a threat is real or and now through several years of coach- imagined, the mind will not automaticallysight and yours ing others in their real estate investing, I’ve make the distinction. The mind will initial-weren’t for that come to know fear for what it is 99.9% ly categorize everything as a saber-toothedds between of the time: False Evidence Appear- tiger, and unless you ignore that initial as-ing is fear. ing Real (F.E.A.R.). Although sessment and consciously re-categorizes between I can’t think of any fear at the your fears for what they really are... Falsemak- moment that I’ve experi- Hasy you enced as being real, I’m sure there’s an excep- other tion, so I left the .1%un-m The Marketopen to satisfy that ex- Evidence Appearing Real, you will forever ception. fall short of your personal potential. Simply Fear, literally, is a distressing put, the fear we experience today is strictly emotion aroused by impending psychological. It’s imagined. It “appears” danger, evil, or pain. Fear is a basic sur- real and dangerous, but it’s not. vival mechanism related to the behaviors If ow tomoney imple con-Shifted! Have You?surmountable, Whether it’s the lack of time, money, credit and/or knowledge that’s hinder- ing your real estate investing, you’ll want to know that it’s not those things that are stopping you. It’s the fear, or the unknown, of fight, flee, escape, or avoidance. The around those circumstances that stop you; capacity to fear is a And this is our clue as to howanything? Fear part Tlooeehfsdatirasanhyteeeu’dsmmmroaaeatnnairdo-l nninais-- money, credit ture. ataqwConculoyhoiotdleopainclorovupvoocpkneenororr”rqoranstsptoucntqeuirrredsulanokayretdisn,haetrtufoycogiieancnt,wwyaineaabo.rdtc.unwittoyo.tciThonouyNmhenuroefre,rooeuetidyr“nrttofioeiodfelunsyieauzrlcryeliftsescwfia,oh(wanoeraniranyasilino-rtld.,studhuinisnhndves.mtfeyNtsyiltneo)outrp–tsseriaobsnnfecrideteesnst.tohhbIletedlreweGsthsawreeseadmaastwfpfDeoilateerhsnpqttsruy–eoisctDmsokiiougonco-h bothTd your real es-heritedk;etitisismaalreks-son that heads lbyedeinffpear-ssedr is your probe-nt tohnafnroitmhgaesnbeereatnion tod not admit thaitn thgeenpearsattifoenwbyeegainrsn.ing caFuosrintgheitltaostgfreoww.years, opportunity. Investing in that environ-use fear comeHs avme iylloiounnsootficyeeda?rs ago wSeim’vpelybepeunt,atbalkeetoaction in mtheent meant that your “skills” coulds, sizes, nameWs e’wvehemnohvuemdafnrsominitial- fatcaekeofadyvouanr tfaegaersoafnadnyour febaersvirtually abandoned. It didn’t taken’t recognize iatn alnyaleyatircnaeld&tosftearirlethe wailnladliystaipcpaleaarn. d sterile in- much artistry to create a solid incomealways calledmarlkiketes(mofosraeboenr-ttohoatthed vBesuttm! eEnatseienrvirsoaindmethnat.n dofnreo,m flipping houses. On the acquisitionke: in atbigite)rsto aanmdar-hungry riRghetm? eInmdbeedr .thBeudt,atyhsere’s an esixd-e it was a numbers game, and on ket wwohlevreesth(ensokwill,that’s Matt Theriault erwcihsenyaolul ycoanu nuseeedteodmtoake tathke- disposition side it was as well. Theow. speewdh, aatndI acdaallptiambpilein-ding indgoactotiofinndinathdeefaalcwe aosf fear eacsuyt. and dry numbers is what made theut there rightty odf athngeeirn,veevsitlo, rorwpilalin!). The last I checked, Yep, easy. bImelalygiunpe twohtahteyMouLrSi,ncome,moarrket analytical. It was sterile becauseottsmhmhoeeovywtbeeharote..crrkdi.,nivsens’ismtbaM-tonhlewvariaftrerfahtwbfwoattkkoshh.eybeereteiirareWsooWlttpetrblhcpusrsaaviwiaarhskttmittasttosnhioaihehsaelylfsy.tgtllarlilepro,Twfoitoieluvmunetsbamrhss;saerresiueapesiizytrtemnotjhr?oyfetsoaemorghetdnptrhctPreytaidchotehetjsarrhsayurmeaoeeas(uutrdslnbanorpcoswfteibnoeagemeuctftaebtaatweeegasapudflyrrtsthysecdmoeesistsctanohnaa.salprhniueimudconsnhoamsdntnisig)neysvtidiwnt,donsisgseteogneoigdb,roncfgndsifutuaaeefftothaadtaialtwhancdteeconctehe-gdeyeh.dihvaaneerelcrtrim.,ersaeyHrne.mtitoWafttdhnhvnhhoennAaoeeioreaawdlwlyesnittt,tcnbaaaooeonkiputytts“FTyuai,doaarkneoogalhkktillyayIguulhsiyheiesnk,szt?nroteyrseegdgauelItaAk”iahE’ecspdssfyammenssteevruwcimieiodoirctefissddaeinpnoakatobyet.netesrbnpshneonperoytIerrcyotttvhsioeuohiennl,aaeecsptdaitstsroamTtteciahltmdromoerwtloiwehpttsfnaayw!eotaotinqft.hhiltvatnenalyuceeiWcewgdstoerltprendp,g,rauohereuiwkorroldrsenafeedmfeedouneogsga,uacfyubtldafaeehyyreclaetyanxdeoeieosrrnsedmtuxtfrloooctg.woosehu.frorreeeytAcykeraoioerdsculeueiheskwaucetmocfaTtttsihhlahhabhtwoytinheeeceasfao.deinnvsnaleegeeysrlse’slwlssdeoar.alewrsatMne.enotrPsdiLftuasriSpeedcgrvsadaao,piienopnmendue.,lorsyObhtlsiaoyftneinwslondikfdneiwtsviieetnneernirgverne,besvtsintahesyentesodpmkmtriishcynus.oagcerlmhlelvy-ee-sove examplesR,ealtyl4o11nGguidaes.cowme look both ways when cro ssing integrityP,AtGhEe84t•es20t1fl4 ushes out the false evi- reWEALTHmag.comfear. Until you the street and steer away from dark alleys Continued on pg. 61 really is and at night, most danger, evil, and pain can be

strategies that produced like virtual cash cease all investing and wait for the next I mean by THAT. This new market ismachines (cha-ching) are quickly wan- cycle of low hanging fruit? Absolutely one where the fast will beat the slow,ing in their effectiveness (uh-oh). not! Quite the opposite, because we, REGARDLESS of the investor’s size. and they, know when one door closes, Hail to the little guy, we’ve got a fight-The market is indeed shifting, and another one opens – and open it has. ing chance. Because the little guy hasis quickly leaving those “analytics the ability to move fast, faster than thedriven” investors behind. If you intend As the quick-flipping type transactions big guy, the little guys have an oppor-to survive as this market continues its slow down, these investors are now tunity they haven’t had in years. And,metamorphosis, you’ll need to sharp- looking to allocate the money they’ve if the little guy moves fast enough,en your ingenuity and get back to the made over this past foreclosure boom he’s not only got a chance, he’s got anbasics of driving a marketing and sales into cash flow properties. Cash flowing unfair advantage. The faster he moves,based organization. You’ll need to not properties are today’s gold mine. These the greater his advantage becomes.only analyze leads, but create and close investors are moving fast, too. They’rethem. Your skills will be required to moving fast to beat the dropping cap The ability to move and change di-stretch far beyond running numbers and rates. But with over 3,000 counties rections quickly and efficiently is onemaking faceless offers. Real estate is, in the United States, you don’t think point where the big guys will alwaysand always has been to varying degrees, they’re just pulling out a map, plunking be at a disadvantage. Those hulkinga people business. Well the people are down a finger, and investing willy-nilly institutional investors are positivelybecoming the focus, and not the byprod- do you? Of course not! These are savvy sloth-like when it comes to the speed inuct.The good news is, the “first The market is indeed shifting,adopters” could come out onand is quickly leaving thosethe other side more prosper-ous than before. The badnews (for those resting“analytics driven” investors behind.fat upon their laurels)is, in order to prosperin this shifting andemerging market you’re going to have investors; they’ve got a plan. which they can respond to change.to work. You’re going to have to workhard, and you’ll have to be very good at So, where are they going? You, the little guy who’s willing to putyour work. rubber to road, you’ve got a shot - one Since I thought you might want to that you haven’t had in a while. You’veHowever, there is a silver lining. The know, I had my team over at Cash Flow got an opportunity; we’ve got an op-media hasn’t picked up on this shift yet. Savvy put together a free report for you, portunity.So, it’s very fair to say that the gener- The Top 10 Cash Flow Markets of theal public hasn’t either. Now, if you’re Emerging Economy. You can access it It’s in your hands now. So, will you sitstarting to piece together the big picture, gratis by going to TopTenCashFlow- and wait, or will you step up and grabyou’ll recognize that there is a huge Markets.com. it? vinsider’s opportunity here. However, before you skip off to down-Here’s what I mean… load your copy, I have another piece Matt Theriault is the founder of Cash of good news for you - you’ll want to Flow Savvy – helping investors like youA small number of discerning, percep- make note of this. move quickly in a changing market bytive and very successful investors that I providing access to his existing teamhave the privilege to associate with on We’re also (thankfully) shifting out of a and resources to assist you in acquiringa regular basis have confirmed my ob- market where the big has routinely beat Cash Flow properties with BUILT-INservations. SHIFT is indeed happening. up on the small. It’s been tough on the equity all across the country. As prom-You didn’t think I’d lead you astray on little guy, I know it. The bigger inves- ised, get your free report that revealsthat point, did you? Of course not! tor, the institutional investor, has had The Top Ten Cash Flow Markets of the an unfair advantage for the last several Emerging Economy by visiting TopTen-So, do you think these rather (very) years. Well, as they say, what goes CashFlowMarkets.comsuccessful investors are planning to around comes around, and here’s whatRealty411Guide.com PAGE 85 • 2014 reWEALTHmag.com

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advertorialHousing Outlook for 2nd Half 2014 ing market impact on the economy with first time unemployment benefits have dropped to levels not seen in 8 years.The mainstream media always the investment opportunity in housing. Again, the job market supports a seems to have a negative bias healthy housing market. As discussed, on housing. Let’s remember There is no doubt that the pace of we are forecasting a 5% rate of appre-that the media needs eyeballs to ciation for the overall housing marketgenerate revenue, and nothing grabs home sales, relative to years past, has for the next year. While 5% may notmore eyeballs than negative news appear to be exciting, in reality, it isthat creates fear. Just think about your slowed. This is predominately due to extremely robust due to leverage used11 O’clock news report. But the news in a real estate transaction. For exam-on housing remains positive. After tighter mortgage qualifying guidelines ple: Imagine a $100k,000 home with awe accurately called the bottom of 20% or $20,000 down payment. If thatthe housing market during my CNBC and an overall shift in home ownership home appreciated by 5% or $5,000,appearances in 2010, prices have the $5,000 gain on the $20,000 invest-continued higher. So where do we rates. About seven years ago, the ment (down payment) equals a 25%see things going for the rest of 2014? return on your money. So, even aLet’s take a deeper look… home ownership rate was 70%, while modest 5% rate of appreciation can be very meaningful to your portfolio. Demographics remain strong as 30% rented. Today, the split is 65% forhousehold formations continue to It’s easy for the media to makeoutpace household completions. A homeowners and 35% renters. This is negative remarks towards the hous-household formation is when an indi- ing market. But the media is typicallyvidual leaves their parents to obtain closer to a more normalized level. The on the wrong side of most markettheir own residence, or when a couple moves. On October 2nd of 2002, thegets divorced and now requires two important point is that the decline back USA Today headline read, “Where’shomes instead of one. A completion the Bottom? No End in Sight”. Thisis when a builder constructs a new to a more normal level has already represented the exact bottom andhome. Essentially this is the supply turning point in stock prices, whichvs. demand equation for housing. It occurred, which allows for a more led to a five-year bull run. And backhas been a very reliable indicator for on March 9th of 2009, with the Dowthe direction of home prices through- stable return to historical appreciation Industrial Average just above 6500, theout history. The forecast for the re- Wall St. Journal headline read “Dowmainder of 2014 and through the next levels. And looking at housing as an 5000?” You guessed it - this was thetwo years shows that household for- exact bottom and turning point into themations should outpace completions. investment, the opportunity remains current bull market for Stocks. The de-Meaning that demand will outpace mographics and economic conditionssupply. This suggests that prices will very strong. We don’t expect the suggest that this is still a great time tocontinue to be supported. purchase a home. v double-digit rates of appreciation that The media often confuses the hous- reWEALTHmag.com we had seen during the past couple of years, but we do expect a more modest, sustainable, and healthier level near 5% per year. R ental demand remains very strong. Many of the new households being formed have elected to rent. This has put upward pressure on the cost of renting. Over time, the added cost of rents makes homeownership more attractive and easier to justify. Clear- ly, real estate is a very local industry. Certain markets will dramatically out- perform or underperform the national averages. But one common theme will be employment. The overall job market has been improving and appears to be gaining momentum. Those filing forRealty411Guide.com PAGE 87 • 2014

strategy How to Make Tax Liens Actually Work Most real estate Discover how Chris Gleason, investors have heard Managing Director of MMG Capital, about Tax Lien purchases tax liens the right way. Investing at some point during their investing career. Between information- selling gurus, late night infomercials, and actual tax lien investors, the concept is generally widespread and understood. When you bid on and buy a tax lien you’re not buying real estate. Rather, you’re buying the right to collect a property owner’s debt that is the result of property taxes going unpaid. You also receive the right to enforce that payment after a statutory period of time has passed. For the sake of this article, we’re not is a short list of some of the traits and a different set of resources, expertise and going to beat that dead horse and talk resources of the most successful Tax Lien circumstances. Investors with less in the about what Tax Lien Investing is. Let’s investing businesses across the country. resource category than other competitors go ahead and presume that you already Most often, investors that struggle with will, more often than not, get pushed know what Tax Liens are and that you Tax Lien Investing lack one or all of these: around. This can mean being able to also believe that they’re one of the best purchase desirable liens because they’re (if not THE best) vehicles for investors MUSCLE being snatched up by other investors. that want to earn passive income in a It can also mean being forced to accept conservative, secured environment. The tax lien marketplace is a highly lower than anticipated interest rates to If for some reason you don’t believe competitive one, but also an opportunistic purchase desirable liens. Having more that then this article probably won’t one if you know what you’re doing. muscle helps investors achieve what be relevant to you. The purpose of this Every investor bidding at an auction has exploration of Tax Liens is to expand Continued on pg. 95 on this great investment vehicle and examine the most important elements reWEALTHmag.com for determining Tax Lien Investing success. Plenty of investors attempt to invest in Tax Liens but struggle to figure out exactly how to make these assets work for them. What follows Realty411Guide.com PAGE 88 • 2014

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GHoowt TthheeGiroSodteanrtBirnotRheErIs $75K Profit by Hannah AshTrue Financial Freedom is what tractor - GoodEnvestors live by the idea and Grow Rich. He advocates, “Read that drives most investors. The desire that “teamwork makes the dream work.” book, follow it to the end. Every success- for monetary success is certainly For GoodEnvestors, this mantra that team- ful millionaire, every successful businesswhat drove the Gooden brothers out of work rules the roost clearly proves true. person I know has that book in theirthe 9-to-5 grind. About a year ago, Eric library . . . focus on what you want, beGooden worked as a marketing director GoodEnvestors clearly believes in good, determined and never give up. If you wantfor a hard money lending company in to be unstoppable, never stop.”Los Angeles, but he aspired to do much,much more. Gooden followed his desire The Goodens willingness to learn andto start his own real estate investment make intelligent decisions helped thembusiness. He formed GoodEnvestors, start off on firm ground. As Eric says,a self-described “real estate solutions “when starting your business, I highlycompany,” with his two brothers, and would suggest putting together a businessthey have already closed their first deal plan. We decided to put something of a business plan together before we startedGoodEnvestors clearly believes in good, solid the business, so we could clearly knoweducation. Before founding GoodEnvestors, what we were doing, what was going toEric and his brothers devoured every real be our focus and what we were going toestate resource that presented itself to them. be focusing on. So we put it together. . . and we went ahead and made it happen.”and are already approaching the finish solid education. Before founding Good- That burning desire to “make it happen”line on their second in lightening-fast Envestors, Eric and his brothers devoured and their extreme focus led the brothersspeed. every real estate resource that presented to do what they call ‘Driving for Dollars’ itself to them. According to Gooden, he and to land, as a result of this, their first With an eye toward helping sellers and his brothers “plugged in to different transaction.through what can be difficult times, information, different events, to Realty411such as a foreclosure, a forced sale . . . We got the information, we started Eric states, “Teamwork definitelydue to the loss of a loved one, sitting going to different workshops, to different makes the dream work.” For these ambi-on a tough sell due to a stalled market, seminars, and plugged in with Anthony tious brothers, this mantra certainly ringsetc., GoodEnvestors walk their clients Patrick and Duncan Wierman. We are just true. Pooling their skills and resources,through the entire process with a sen- plugging in and soaking up as much in- the Goodens were able to make magic asitive approach that makes them truly formation as possible so that we can make reality. As Eric commented, “ Timestand out…..Drawing upon different intelligent moves.”skill sets - Eric’s background as a mar-keting director, one of his brothers is a Eric highly recommends the merits ofbroker and the other is a general con- self education and praises the book ThinkRealty411Guide.com PAGE 90 • 2014 Continued on pg. 94 reWEALTHmag.com



diversification Copyright: Ash Design / 123RF Stock Photo 7 Key Ingredientsfor SuccessfullyTrading for a Living by Chief Trader Bruce E. Dinger bor because they know the importance of “footprints of the elephants” and noting if www.KTCashFlow.com associated properties and how they will the big investors are putting their money have an impact on the valuation of their on the line with your stock of choice.Trading in the stock market identified property. Trading and invest- While the investment from a big money can be challenging if you ing in the stock market is very similar. manager is no guarantee that your stock do not have a clear roadmap If you develop the habit of checking the is going to do well, it does increase the and recipe for success. The surrounding “neighbor”, understand the probability. Another trend to watch for ispurpose of this article is to provide attraction or valuation of those related “insider buying”. There are many reasonssome key structure in selecting your properties; you will increase your chances that executives of a company sell theirinvestments or trades. Follow this for successful investment selection. shares, but there is usually one main rea-process and your chances for finding son that they buy shares of their companyhigh-probability successful trades are 2. Fundamentals – they believe it is undervalued.likely to increase. The 2nd thing you need to do BEFORE It is also important to note global trends 1. Industry Group you think about pulling the trigger and for the company’s supply and demand of placing that trade is to check under the their products and services. SuccessfulThe most common mistake that inves- hood, what is better known as the “funda- investors and traders understand the im-tors make is looking at an individual mentals”. Many investors think they need portance of noting trends and classifyingstock without reviewing the industry a degree in finance, but even a simple them as “cold, warm, hot, and explosive”.group’s performance. It is key that look at the company’s basic fundamentals Yes, analyzing global trends does takeinvestors start their due diligence by will give you a sense for the strength and time and a commitment to serious dueexamining the performance and trend viability of their business. diligence, but the payoff can be HUGE.of the overall industry group. Savvyinvestors understand the importance of Key Fundamentals Finally, under “trends of interest”, ana “top-down” analysis approach and Here are some key trends to note and com- investor should focus on the leadership ofknow that old saying “a rising tide lifts pare to the company’s closest competitors. the selected company. Determine if theall boats”. So if you truly want to in- executive team are seen as visionaries,crease your chances for success in the Revenue great business leaders, or underperform-stock market, start with the attraction Net Income ers. If they have major followers, chancesor trend of the industry group before Profit Margin are great that the stock valuation has solididentifying any individual stock. Return on Equity upside potential.Industry or sector analysis is very sim- 3. Trends of Interest 4. Analystsilar to a real estate investor purchasinga property. The real estate investor Critically important is to look for trends Many investors dismiss analyst ratings butfirst focuses on the surrounding neigh- of interest. This means starting with the this is a mistake. After doing your aboveRealty411Guide.com PAGE 92 • 2014 reWEALTHmag.com

due diligence and your findings low risk/high reward opportunities will not only help increase your probabilitysupport a high-probability rocket ship increase. for success, but also eliminate as much ofstock, but then you notice that the the risk as possible. Architecting a tradeconsensus amongst the analysts is a Regardless of whether you are a short- with the idea of reducing your exposure“hold”…this could be the set-up for a term trader or long-term investor, to and providing the highest reward is thefuture catalyst. How, you might ask? effectively recognize price patterns and true sign of a Master Trader.If everything else is equal and your distinguish between ‘major’ and ‘minor’findings support a good buy, and then reflection points of supply and demand, Follow the 7-steps outlined above andlater the analysts begin to revise their it is important to use multiple time frame you should see a higher degree of successratings from a “hold” to a “buy”, this analysis. Thistypically serves as a catalyst to help means viewing a in the market and come closer tocatapult your stock’s valuation to chart from not only your pursuit of trading for a living.new heights. a standard one- year time frame, v 5. Earnings and but looking at all Conference Calls major time frames Bruce E Dinger is an Investment including a 20-year, Advisor for private qualifiedThere is much that you can learn by 10-year, 5-year, clients and also a world-classlistening to the company’s conference and 3-months, and educator in the stock and optionscall. You will find out not only the various intra-day market. Be sure to register for acompany’s outlook and possible con- charts. live webinar or upcoming event atcerns, but you will also uncover what www.KTCashFlow.comis important to the analysts. Thequestions being asked could signal a Viewing a chart utilizing multiple time Mr. Dinger has spoken on some of thetrend of what the analysts are seeking frames will ensure that you gain a better largest stages around the globe, includ-and provide insight to you as an understanding of key pivot points and the ing CNBC, BusinessWeek, SuccessMaga-investor of what is really important. major and minor waves of a chart. This zine, The Women’s Financial Conference,Listen to how the executives handle helps you to make better decisions on both Rich Dad’s, On-Line Trading Academy,the questions….are the questions your entry and exits. Success Resources, and many others.handled with confidence? Are there He has one of the best reputations in theother companies in that group that 7. The Plan financial markets for helping studentsperhaps have a better foothold on achieve their goal of becoming an inde-the trend of interest to investors and One of your finals steps before placing the pendent trader or investor.analysts? Listening to the earnings trade is to plan your entry, your exit, and Dinger can be reached atcall or reading the transcript is key in the strategy you intend to utilize that will Dinger@KennseiTrading.comthis process of becoming a successfulinvestor or trader. 6. Technical AnalysisAfter all due diligence has beencompleted, one of the true barometersof the market’s interest in a stockis “Price Action”. The supply anddemand of a company is ultimatelyreflected in the price. An investor ortrader of the market must learn howto recognize KPPs (key pivot points)that reflect the emotional patterns ofmarket participants. As you becomemore familiar with the price action,price patterns, support and resistanceareas, and other technical aspects ofchart reading, your ability to effec-tively manage your risk and identifyRealty411Guide.com PAGE 93 • 2014 reWEALTHmag.com

We Made It Happen! pg. 90is definitely of the essence. They say not so long ago? Absolutely. First, and focusing on.” Now, GoodEnvestors does what he dubs, “farming his market.”it’s all about location, location, location foremost, networking matters. It’s how What is driving for dollars? It’s drivingwhere investing and learning is all about you learn leads to go after - and pitfalls to to find properties that may just need atiming, timing, timing…” Their first seller. As Eric stated, “when opportunity avoid. Eric tells, “Yeah. I was working for presents itself, you definitely have todeal, ‘Driving for Dollars’, meant finding a hard money lender. That was how I got have the sense of urgency and be able toa motivated seller left with an estate they introduced. But even still, transitioning is respond and react to something becausewanted to unload. That’s where the Good- to have it in my own business. I still need sellers are motivated, they are emotionalen brothers stepped in. Though the sellers the resources, I still need the education and they need a solution to their prob-originally wanted $220,000, the Goodens, and I still need the mental steps.” Ongoing lem fast.”using their joint skills, were able to talk resources, ongoing education: a proventhe sellers down to a more reasonable Finding education. Finding sellers. recipe for investing success? It seems Finding deals. Making true cash happen. When it comes to to the world of realFor their part, they were able to quickly like this is estate investing, these ambitious broth- one recipe ers have it down pat. As they close their next deal, they remain ambition aboutwholesale the deal and walk away with a cool that really their future. According to Eric, creativity cooks up is key, as he says, “So you have to be$50,000 in cash earnings as an assignment fee. measurable creative out here. It’s very competitive.” success for Competitive, yes - but the Goodenselling point of $200,000. The property of go-getters. this family brothers have a lot of balls in their court - from expertise, knowledge, a true fam-sold right away. Eric goes on to say “put together a ily bond and an ambition that literally drives them from one deal to the next.For their part, they were able to quickly business plan - and follow it.” He followswholesale the deal and walk away with up, “We decided to put something of a va cool $50,000 in cash earnings as an business plan together before we start theassignment fee. business so we can clearly know whatDo the GoodEnvestors have any advice we were doing, what was going to beto share with first timers like they were our focus and what we were going to beRealty411Guide.com PAGE 94 • 2014 reWEALTHmag.com

Image: Maxxy Ustas / 123RF Stock Photo { How to Make Tax Liens Work, pg. 88 } need to consult contractors or real estate agents to economists refer to as “economies of the time and money to participate without evaluate the collateral scale.” Basically, this means that costs throwing all of their potential profits at and determine whether a of being in business are spread out over due diligence costs. condition might exist that a larger number of assets, bringing down may make the real estate your cost per asset acquired. Leveraging a portfolio of tax liens undesirable. These teams can not only increase your returns of people are one of the Remember, it takes both time and dramatically, but it can also give you greatest resources that any money to perform due diligence on tax far more purchasing power. What’s best Tax Lien Investor can have. liens, so every time competition takes about leveraging a portfolio of tax liens away opportunities from you, your time is that while it gives you tremendous NATIONAL PRESENCE and money goes right out the window. upside, it doesn’t create the same potential downside as when you leverage a piece of There are some successful To be successful in tax liens, an real estate. When you leverage a piece of Tax Lien Investors that have investor has to come from a position of real estate your equity can disappear fairly made a business out of purchasing Tax strength. Entering the tax lien marketplace quickly with a market correction. With Liens in one specific state. However, this in hopes of buying a handful of liens is a tax liens, which are on average less than isn’t the norm. Most successful Tax Lien tough proposition these days. 5% of the underlying property’s assessed Investors cover a majority of the country value, downward market shifts have no with their buying. The reason for doing DIVERSIFICATION real effect. this is simple: they have to keep their capital deployed. If an investor purchases Coming from a position of strength will BOOTS ON THE GROUND a lien that pays (redeems) a day later, the likely lead to diversification by itself. interest tied to the lien may be small and Bringing more muscle (capital) means Everybody knows the saying – “You the return to the investor will likely be more purchasing power. More purchasing make your money when you buy, not minimal. power leads to having a larger portfolio of when you sell.” The same is true of Tax The key is to have another outlet to Tax Liens. A larger portfolio of tax liens Liens. You make money with Tax Liens by get that returned capital working again. means greater asset diversification. buying smart and being able to redeploy It’s not likely that a lien can be purchased your capital as soon as it comes back to from the same state that the original lien Although tax liens as a whole are an you. was purchased in because tax lien auctions exceptionally safe asset class, there are are seasonal. Almost all states sell their still risks involved. If your portfolio is However, it’s also necessary to have the liens within a month or two during the small and you accidentally purchase a lien right people in place to service a lien and year and it’s likely that the state’s auctions that is secured by an uninhabitable piece keep an eye on the underlying collateral would already be over. Being ready to of real estate, the negative effect of that throughout the life of the lien. Far too move from state to state in order to keep a lien on your portfolio is magnified. often investors buy tax liens assuming that tax lien portfolio working is a key part of they’ll never have to worry about them successfully investing in tax liens. An investor who owns 10 liens and ever again and that a check will eventually has 1 turn out to be a stinker is in a much show up in the mail. These are just some of the most different position than an investor with important components of a successful 1000 liens that has a similar stinker. Unfortunately that’s just not always the tax lien investing business. As you can Diversification makes the occasional case. Should a property owner not pay probably tell, there are certain advantages mistake or unfortunate hazard far less and a tax certificate remains unredeemed that bigger buyers will always have over important in the grand scheme of Tax Lien it may be necessary to hire legal counsel smaller buyers. The concept of investing Investing. to file foreclosure (or an application for in tax liens is a simple one, but actually deed) to enforce payment. You may also doing it can be quite a complicated LEVERAGE process. Tax Liens are a fantastic asset class for the conservative investor, but Leverage is another concept that any like anything else, you have to know what active real estate investor is likely to you’re getting into. understand already. Leveraging your investments leads to exponential growth in If you don’t, there’s somebody else out your returns. there that does. As they say, “if you can’t beat ‘em – join ‘em.” The tax lien industry is a competitive environment that can leave investors v searching for yields that are high enough to wet their appetites. It’s also very much a “hands-on” industry that can make it very difficult for small investors to spend Realty411Guide.com PAGE 95 • 2014 reWEALTHmag.com

The Relationship BetweenT&eInnavnetstSocrrePernoifnigt An interview with Carole Clinkscales,Director of Marketing forNational Tenant NetworkWhat is tenant screening?Tenant or resident screening is thegeneral term used to describe the pro- What are Fair nationwide in scope and offer ancess of obtaining relevant credit and Housing Laws? experienced staff capable of answeringpublic record information by land- Fair Housing Laws are in place to pre- questions and recommending reportlords and property owners in order to vent discrimination in housing transac- options.better evaluate a prospective tenant. tions, including sale, rental or financingThe applicant’s personal information of property. The Fair Housing Act The availability of obtaining ais collected on the rental application, prohibits discrimination based on race, “scored” report, such as National Tenantalong with an authorization allowing color, national origin, religion, sex, fa- Network’sthe landlord to use this information in milial status and disability. Should youmaking a tenant selection. violate these laws as a landlord, whether NTN DecisionPoint, will simplify intentionally or accidentally, you may the leasing process. NTN DecisionPoint Why is it important? be sued in Federal Court and ordered to reviews an applicant’s background and Managing a rental property involves pay actual and punitive damages as well produces an overall score, much like aa commitment to property mainte- as attorney’s fees and costs. credit score, along with a correspondingnance, record keeping, and above rental recommendation – both of whichall, selection of the best possible How do I choose the best resident are based on a thorough and objectivetenant for the property. Selecting the screening company? analysis of both the applicant’s creditbest tenant protects your investment. The best tenant screening companies are record and his or her history of evic-Good tenants not only pay the rent tion(s) and/or lease violation(s). NTNon time, but are the onsite stewardsfor your property. If you select the >wrong tenant, you run the risk of lossof income from unpaid rent, possibleproperty damage or liability for theactions of your ill-advised choice ofrenters.Realty411Guide.com PAGE 96 • 2014 reWEALTHmag.com

DecisionPoint also takes into account NATIONAL TENANT NETWORKlongevity of employment and longevityof residence, thereby ensuring a higher For more than 25 years, Nation- As the nation’s oldest and largestprobability of overall resident retention. al Tenant Network has been national resident screening service, focused on a single goal: to NTN has successfully screened more In addition, the NTN DecisionPoint help property owners and manag- than 15 million applicants. Our in-report is accompanied by a comprehen- ers make the best leasing decisions depth knowledge of resident screen-sive NTN tenant-performance profile, possible. We care about your bottom ing and landlord/tenant challengesa detailed eviction and lease violation line, and understand the importance helps us deliver exceptional end-to-history, screening history, landlord iden- of maintaining the integrity of your end resident screening solutions.tification and terrorist search. rental property. NTN operates from 20 regional offices nationwide, pro- To speak with our experienced staff,How do I obtain an applicant’s credit viding exceptional customer service contact NTN at 800.228.0989 or onreport? to every subscriber. the web at www.ntnonline.comTenant screening companies, such asNTN, are strictly regulated under the How does comprehensive applicant ly equate to good tenants.terms of the Fair Credit Reporting Act. screening impact investor profit? Tenant screening is quick and costAnyone requesting consumer credit in- Investment losses can occur fromformation about an applicant must show evictions, “skips” (tenants who leave effective. It should always be an inte-“permissible purpose” before receiving without notice or without paying the last gral part of your investment propertythe records. There are three national month’s rent) or property damage done management strategy. Minimizing riskcredit bureaus providing this informa- by tenants. requires that you:tion: Equifax, Experian and TransUnion. • Establish consistent criteria for all While these are examples of the rental property applicantsWhat additional information should I most common lease violations, they are • Comply with all federal and staterequest? not the only ones that might cost real laws regarding Fair Housing andIn additional to consumer credit infor- estate investors money. It is especially Credit reportingmation, tenant screening reports may important to be aware of past perfor- • Obtain the data necessary to makealso include criminal records, eviction mance when choosing a tenant for your an informed decisionrecords, sex offender registry searches, property. Good credit doesn’t necessari- • Screen every applicantPatriot Act or OFAC searches and rentalor employment verifications.Start Your Education Today!Get Your FREE Self-Directed Self-MadeSuccess ebook and a FREE 1-on-1 MentorSession with a USelfDirect Wealth SpecialistRealty411Guide.com PAGE 97 • 2014 reWEALTHmag.com

Who Finds ResidentialProperties Even When theMarket is Down? by Leon McKenzie, US Probate LeadsThere is no doubt about it. . . Since the recession in 2008, a lot of families who might look for a Existing Properties Aren’t Enough the real estate market sim- new home simply can’t do so, limiting for Traditional Buyers ply hasn’t been the same. the amount of homes that are coming onSome of the people that have been the the market due to upgrades in residen- In addition to banks sitting on fore-most hurt in the entire scenario have tial homes or downsizing. In a recent closed properties, a stalling of newbeen homeowners who are simply article by the Dallas News, Ted Wilson building efforts has also hampered thetrying to find a new home to accom- of Residential Strategies was quoted, growth of the residential real estatemodate a growing family or a need “Inventory — or lack thereof — is the market. In an article written by Susanfor a new location. Regardless of the big constraint on the market.” Stabley of the Charlotte Business Jour-geographical area within the United nal, she wrote, “But while the residen-States, there are simply not enough After the credit boom that occurred in tial real estate market has rebounded inresidential properties on the market in the early 2000’s, banks discovered that the past year, there’s an imbalance ofthis depressed market. many of the people who had purchased vacant developable lots. homes simply couldn’t afford them.There is a solution, though. Investors That led to a huge amount of foreclo- National builders were able to buyand individual buyers who are work- sures on the market. Many of these land cheap during the recession anding in the probate industry have ex- homes are still available today. While then hold on to it as they waited forperienced a constant supply of viable the idea of a foreclosed home might the market to recover. The inventory ofresidential leads that can fit the needs sound like the route to finding a ton of those lots in high-growth areas is nowof investors’ portfolios and families. homes to choose from, that is just not diminishing rapidly.” the case. For the most part, banks have A Shortage that Has Hit Nearly opted to sit on foreclosed properties. While many builders are waiting for Every Community the economy to return to a growth Banks sitting on foreclosed properties phase before beginning a building pro-Why is there a shortage of properties means that a great deal of homes that cess, others simply can’t find the rightin the United States today? There should be on the residential market land in order to continue to build neware a lot of economic reasons and are not. And, unfortunately, when a residential properties. This is anothercontributing business management buyer does make an effort to bit on a reason that buyers simply can’t find thepolicies that have made a tightening foreclosed home, the banks are slow to right property in their area to purchase.of the traditional market inevita- reply to the offer and generally want the With many families choosing not toble. One of the primary reasons that market price for the property. Given theresidential properties are simply not fact that many of these homes have been Continued on pg. 100on the market is due to the persistent sitting for years and many have beencredit shortage. To say that banks vandalized, have had copper piping andare concerned about lending money other fixtures stolen or have experiencedto homeowners is an understatement. a significant amount of damage due toIn order to get a traditional mortgage the lack of regular maintenance, there isin today’s market, individuals and no reason for the home to sell at the cur-couples need nearly perfect credit. rent market value. This is yet anotherThis inability to get credit means that constraint on the traditional residential market.Realty411Guide.com PAGE 98 • 2014 reWEALTHmag.com



move and the credit market and resi- That means they’re unlikely to put their able in plenty in the probate businessdential inventory so low, bidding wars own homes on the market. If you can’t and it offers a significant amount ofand higher prices are now the norm. trade up, you’re probably not going opportunities to not only investors, butDavid Brown, a housing analyst, was to sell. Adding insult to injury — for to individual homeowners who reallyquoted as saying, “I continue to hear buyers, at least — is that the lack of want to purchase a new home and notanecdotal reports of strong demand: supply is sending prices of available wait for a change in the economy.multiple offers on a property, prices homes through the roof. In a perversegetting bid up above the listing price, way, tight credit is making housing Experts estimate that nearly 100,000and homes selling before they official- prices rise, which is completely con- probates are filed each and everyly hit the market. Unless more exist- tradictory. But it is definitely keeping month in the United States. Each pro-ing homes get listed or builders start inventory from entering the market in a bate filed nearly always has propertymore homes, the housing market will normal way. The tight market condi- attached to it – including everythingremain very competitive for buyers the tions have also led to regular bidding from boats, to cars, vacation homes,remainder of the year.” wars. Garfinkel estimated that one out businesses, commercial property and of every three Manhattan buyers who yes, residential property. This means A Residential Shortage that is Not comes to his office has engaged in a that there is a constant flow of resi- Limited By Geography bidding war of some kind. Last year, by dential properties into the market in a contrast, he might have seen that in just way that the larger economy simplyMany areas of the country are suf- one in ten deals. Things have heated up isn’t seeing at this time.fering from this issue – even the big significantly.”cities, such as New York. Said C. J. There are significant benefits to focus-Hughes, at least one major obstacle is The strong demand for residential ing on finding a residential propertypreventing a surge in residential sales homes and the combination of the credit through probate. The process itselfin New York City: Even if buyers crunch and the banks’ unwillingness to is guided by the courts and requireswant to purchasehomes, there that property be distributed oraren’t many to liquidated in order to close thechoose from. filing. In order to do that, theIn fact, the court empowers an Executor,current inven- who can be a family member,tory crunch, the friend, attorney or accountantworst in recent to make the decisions for thememory, has estate. This is a benefit tobecome the residential buyers becausedefining feature Executors know that the prop-of New York’s erty they represent needs toresidential mar- be sold in order to pay taxes,ket.” medical bills, legal fees and funeral costs.Areas such sell foreclosed properties in a timely Discounts and Quick Image: jirkaejc / 123RF Stock Photoas New York, manner at a reasonable price have left Closings are Commonwhich are seeing homeowners with few options.strong demand for people that want to Because of this fact, many Executorsmove into the city, simply cannot keep Probate Properties Provide are prepared to sell residential homesup with the demand. Hughes quoted the Solution for up to thirty to fifty percent belowNeil Garfinkel, a New York real estate the current market value. These dis-attorney, who said, “Other factors The probate industry continues to counts are not only due to their needrestricting residential inventory today flourish despite the overarching chang- to sell the home, but because mostinclude continued high unemployment es to the residential real estate market. Executors are quite realistic aboutand tight credit, industry experts said. Residential real estate is always avail- their property. While the “bones” ofHomeowners who are struggling finan- the home may be good and it may becially or fear they can’t get a mortgage in an excellent area, their loved onecan’t upgrade to larger apartments. may not have had the energy to take