Realty411

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Vol. 5 No. 3 2015 |

A Resource Guide for Investors

LIVE the Life

Real Estate Makes

DREAMS Possible

Investor & Author

LORI GREYMONT
Enjoys Country Living
in Tech Silicon Valley
DO MORE DEALS NOW!
Find the Funds Inside
with PRIVATE MONEY411
Rise to the Top of
THE REI WORLD
Meet Industry Leaders
WEALTH Tips & Techniques
+ 411 News & UPDATES

contents

13 Publishers Note: Meet Us in Your City

Randy Reiff,
CEO of FirstKey
Lending, LLC,
is our cover
feature for
Private
Money411

14 Tax-Saving Strategies with Patrick James

18 Kathy Fettke Discusses Flipping

20 Growth Equity Group Offers Cash Flow

22 12 Rounds with Black Belt Investors
24 Notes: Turn Distress into Success
25 Win with Probate Real Estate

26 Lori Greymont Designs Her Perfect Life

31 Private Money411 with Randy Reiff

36 An Interview with Tim Herriage of B2R

38 Networking for Real Estate Investors

40 FirstKey Lending Continues to Innovate

pg. 31

44 Is Owning the Best Income Source?

46 Applied Business Software Expands

51 A Lesson in Real Estate Syndications

53 Is Having a Cat More Work than an IRA?

55 Luxury Rides for Realty Professionals

58 Special: Whats Wealth Without Health?

61 Investor Resources & Special Offers
64 Advantages of Solar Energy

pg. 55
pg. 14
Photo right:
Pat James with
United States
Tax Relief

pg. 20

The Team from

Growth Equity
Group: Preston
Despenas (top) and
Brett Immel (left)

Realty411Guide.com

PAGE 3 2015

reWEALTHmag.com

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PUBLISHER
Linda Pliagas
BRE #01355569
PRESIDENT
Nikolaos K. Pliagas
EDITORIAL STAFF
Lori Peebles
Robb Magley
Tim Houghten
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COPY EDITOR
Stephanie Mojica
PHOTOGRAPHER
John DeCindis
COLUMNISTS
Tom Wilson
Kathy Fettke
Lori Greymont
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Sensei Gilliland

Business Consultant
Steve Kendis, GRI, MLO
BRE #00815859
PRODUCTION
Augusto Meneses
WEB MASTER
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ADVERTISING
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EVENTS & EXPOS
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Anthony Patrick
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Realty411 / reWealth magazine is proudly published from Santa Barbara County, Calif.
Copyright 2015. All Rights Reserved. Reproduction without permission is strictly prohibited. The opinions expressed by writers/columnists are not endorsed by the publishers.
IMPORTANT DISCLOSURE: Publishers and staff are not responsible for performing due diligence on the opportunities offered by magazine advertisers and expo sponsors. Before
investing in real estate seek the advise of your trusted financial advisor, attorney or tax
consultant. BEWARE: Real estate investing is risky and may result in loss of capital.

PRINTED IN THE USA GOD BLESS AMERICA

Connect to our virtual network online:

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Call 818-217-4630 for information

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PAGE 9 2015

reWEALTHmag.com

N
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hanks for joining

me once again on
another adventure
towards success
in real estate, business and
life. It is said that the only
thing that remains constant
is change. But change can
create unwanted stress. It
certainly can be a nail-biting
time trying to maneuver
around obstacles in our path.
One thing that remains
steadfast in this chaotic
world is our commitment to
serving our community with
key information about real
estate investing.
I feel its important to
pair our print issues with
networking events because
I know real estate is a
relationship-based business.
Building in-person connections can quickly uplift us to
new heights.
Many of our expo guests,
magazine subscribers, and
social media fans have met
individuals at our events that
have catapulted them to new
levels of success.
On a personal level, I know
the knowledge Ive absorbed
at many events, not just the
ones we host, has greatly
enhanced my life.
The fact is: I cant help but
improve my life when Im
surrounded by such great
real estate investors and
industry leaders! Sharing
the day with individuals
who strive for success in all
aspects of life is electrifying.
The smiles that greet me
are so special and fuels my
energy to meet even more of
our readers in person.

Linda Pliagas, Publisher

Photo: John DeCindis

As a matter of fact, last

year we reached more
people than any other company in our niche. We have
hosted events in spectacular
cities, such as: Indianapolis,
San Diego, Los Angeles,
San Jose, Santa Barbara,
Pismo Beach, San Francisco, Seattle, Phoenix, Las
Vegas, McAllen, Texas;
plus Manhattan and Long
Island, N.Y.
Its truly an honor for me
to meet our readers across
the country and to experience all the cultural nuances
of our diverse nation. From
the East Coast dialects I
overhear as I stroll down
Midtown Manhattan, to
the Mandarin alphabet
characters I admire in San
Franciscos Chinatown.
My work in the industry
continues to fascinate and
lead me to new places and
levels in life.
Thank you for being a
part of my journey. Enjoy
our new edition and please
let me know if we can assist
you in any way.

BIRMINGHAM, AL

LindaPliagas

Follow my industry updates and connect with me:

Realty411Guide.com

PAGE 13 2015

reWEALTHmag.com

taxes

Dealer VS
Real Estate
Professional
Deductions

By Patrick James,
United States Tax Relief

such losses for many years. In short, your rental losses will be
useless without offsetting passive income.

f the IRS audits a real estate investor, one of the

first things they look for is whether the investor is a
dealer or a real estate professional. Most dealers are
subject to passive activity loss rules that limit the
amount of losses from negative cashflow real estate. If
however, the IRS designates you as a real estate professional, you get to write off unlimited losses against
income!
RENTAL LOSSES FOR DEALERS
Heres the basic rule about rental losses you need to
know: Rental losses are always classified as passive
losses for tax purposes. This greatly limits your ability
to deduct them because passive losses can only be used
to offset passive income. They cant be deducted from
income you earn from a job or investments such as stock
or savings accounts.
Passive income is the income you earn from rental
real estate or other passive activities. An activity other
than real estate is considered passive if you dont materially participate in it that is, work at it for a minimum
number of hours each year usually 750 hours. Passive
income does not include income from a job, a business
you actively manage, or investment income. Thus, for
example, youd have passive income if you earn a profit
from one or more rentals.
Without passive income, your rental losses become
suspended losses you cant deduct until you have sufficient passive income in a future year or sell the property
to an unrelated party. You may not be able to deduct
Realty411Guide.com

EXCEPTIONS TO PASSIVE LOSS RULES

There are only two exceptions to the passive loss (PAL)
rules:
You or your spouse qualify as a real estate professional, or
Your income is small enough that you can use the $25,000
annual rental loss allowance.
Property owners with modified adjusted gross incomes of
$100,000 or less may deduct up to $25,000 in rental real estate
losses per year if they actively participate in the rental activity. You actively participate if you are involved in meaningful
management decisions regarding the rental property and have
more than a 10% ownership interest in the property. This
allowance is phased out for taxpayers whose MAGI exceeds
$100,000 and eliminated entirely when it exceeds $150,000.
Thus, it is useless for high-income landlords.
So what does the IRS look for to determine if you are a
real estate dealer or real estate professional? It all depends on
how you spend your time.
TO BE A REAL ESTATE PROFESSIONAL
To be a real estate professional, you need spend at least 750
hours each year actively working in your real estate business
AND you must pass what the IRS calls the half-personal
services test. This means you must spend MORE than 50%
of your working time in your real estate business.
Per the IRS, If the taxpayer has a full-time job working
2,080 hours a year in a non-real property business, he must
work 2,081 on his real property businesses to meet half-personal services test.
The 750 hour test must be met by one spouse alone so
dont say, My wife and I both work the real estate business,
and between the two of us, we put over a thousand hours into
the real estate business. you will loose. The IRS is very

PAGE 14 2015

Continued on pg. 16

reWEALTHmag.com

Its about time we show you

A REAL HERO

Close your loan in as little as 30 days!

Steve Bighaus has over 24 years experience in the mortgage industry. He maintains a
focus on servicing the real-estate investor by offering aggressive financing options and
resources for buyers interested in purchasing or refinancing their investment property.
By concentrating on investment properties and the financing that comes with them,
Steve is recognized nationally as an industry expert. The knowledge that he has enables
him to find financing for people even when they have had difficulty elsewhere.

Contact Steve Bighaus

Senior Loan Officer
206.930.1801

Attention Investors:
Pre-Qualify Today!

steve.bighaus@snmc.com
NMLS#: 112825
This is not a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation,
sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting
guidelines, interest rates, and program guidelines and are subject to change without notice based on applicants eligibility and
market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in
payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant. Security
National Mortgage Co. is an Equal Opportunity Lender.

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Tax Deductions, pg. 14

specific: You combine your

income on a joint tax return.
But you cannot combine your
hours to claim status as a real
estate professional on your
individual/couple income tax
return.
NOTE: The IRS trains its
agents to ask about who
actually manages the property. They are also trained to reality-check what you tell
them against your Schedule E. If you are claiming you are
actively involved in every aspect of your property but
simultaneously claim a lot of management fees on your tax
return via Schedule E, and deduct them from rental income,
that gives the IRS ammunition to shoot down your deductions.
RED FLAGS
Here are some Red Flags IRS auditors look for:
Do you have an operating agreement for your LLC? In
an audit, the auditor WILL ask to see them.
Did you document a shareholders meeting this year for
your corporation? Are there minutes prepared?
Did you group all your real estate investments together

as a single activity?
Be prepared to produce other
years returns showing the same
election. The IRS expects consistency. The election is binding
on future years.
If you are a limited partner in
a partnership, you cant claim
the $25,000 special allowance.
The same applies if you have
less than 10 percent interest in
image: 123rf.com
ownership.
If you try to deduct real estate
losses over $25,000 and youre not a real estate professional, expect the IRS to scrutinize you.
Did you deduct rental losses while showing an AGI of
greater than $150,000?
BECOME AUDIT PROOF
Here is one final suggestion: Never go into an IRS audit by
yourself. IRS agents are trained to ask trick questions and
to trap you into saying things.
For a FREE BOOK on how to capture all the tax deductions you are entitled to and stay audit proof, go to
http://UnitedStatesTaxRelief.com for a FREE download.

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PAGE 16 2015

reWEALTHmag.com

www.TexasExpo.com

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Mingle with Awesome
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Learn from the Best
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We are pleased to invite your organization

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For information about having your

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Brad Sumrock, Multifamily Apartments

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Rob Barney, DHLC Mortgage
AG Gupt, Real Acquisitions Systems
John Jackson, Lease Options
Scott Meyers, Self Storage Centers
Reggie Brooks, Foreclosures
Gene Guarino, Assisted Living Centers
Steve Downs, The Falls Event Centers
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Jason Schubert, Rich in Five
Brett Immel, Growth Equity Group
Plus, A Surprise Keynote!

Ad Deisgn: Realty411guide.com

OUR PROMINENT SPEAKERS INCLUDE:

Omni Hotel, 9821 Colonnade, San Antonio, TX 78230

market update

Can Investors Still

MAKE MONEY
Flipping Property?

By Kathy Fettke, Real Wealth Network

an Francisco and San Jose led the nation in house

flipping, according to Trulia. Will that trend continue?
And if not, what will be the best strategy this year for
making money in real estate?
Extraordinary returns can be made by flipping houses
(finding run-down properties, fixing them up, and then selling
for a profit), but substantial losses can also occur. The key is
understand market cycles.
In markets where home prices are increasing every single
month, its a lot easier to make a profit flipping property. You
can make mistakes, do less renovation, and sometimes do
absolutely NOTHING to improve the property and STILL
make money.
However, as we now know all too well, the opposite is true
when home prices are flat or declining. In a down market, the
chances of being able to buy at a low enough price to turn a
profit get slimmer, leaving you with a very risky investment.
While home prices have been steadily rising for several
years, will that continue? What are the signs we should be
noticing?
Certainly we need to be paying attention to affordability.
We also need to be aware of what could happen to a market if
interest rates were to increase. Supply and demand is always
important is inventory increasing or decreasing?
Many markets have seen home prices surpass 2006 peak
levels, and we already KNOW that was a bubble. Is it possible
or even sustainable for prices to continue to increase in those
markets?

THE REALITY OF FLIPPING HOUSES

The truth on the ground is far more complex than most real
estate gurus would have you believe.
Inexpensive houses are getting harder to find, and yet more
and more speculators are hunting for them driving prices
up. Even foreclosures are selling for close to their true market
value, before any renovations have been done!
Those who are lucky enough to find deals often have to
deal with mold, foundation, or pest problems and yet prices
dont reflect the amount of work required. Fixing the problems could wind up eating up far more money and time than
initially planned. This can make flipping houses a full-time
and difficult job especially for those who are new at it or
already have full-time jobs.
Please proceed with caution before jumping into a flip.
Partner with someone who has done it successfully many
times before.
Realty411Guide.com

AN EASIER WAY TO MAKE MONEY

IN REAL ESTATE
Most people are too busy to put in the hours of time it
takes to find, renovate and resell property. The good news
is, you dont have to! Its possible to see high returns in real
estate with little of your own time and effort by simply pursuing passive real estate investing options instead. And these
opportunities abound. In fact, this is EXACTLY the right
market cycle for passive real estate investing!
According to the Joint Center for Housing Studies at
Harvard, renters made up 31% of households in 2004. By
2012, that number climbed to 35%. The rentership rate for
people between 30 and 64 is the highest it has been in over
30 years! And professional management allows you to enjoy
the returns on your investment without having to deal with
the day-to-day stress of being a landlord.
When we buy a quality property in a safe neighborhood
near jobs and good schools in a solid market, and then rent
that property to a qualified tenant for more than the expenses,
we create a life-long passive income steam for ourselves.
And every single year we do this, we get a raise because
rents are increasing along with inflation.
There are obviously some tricks to doing it right so that
the rental property is truly passive. But those tricks are easy
to learn. Make sure the home is fully renovated to likenew condition so that you dont have to deal with on-going
repairs. Buy near employments centers in low crime areas
with good schools. And look for property where rents are 1%
of purchase price in order to get enough cash flow to cover
expenses.
If you live in California or other high-priced markets,
finding a property that meets this description is nearly impossible. California property is not known for cash flow. In

PAGE 18 2015

reWEALTHmag.com

fact, most Californians dont even know the term! They only
know appreciation (or devastation when the market turns).
They do not know the concept of investing for monthly
passive income because it simply doesnt exist in high-priced
markets.
CREATING A MUCH BIGGER BACKYARD
While many real estate gurus say that people should look
for investments in their own back yard, unfortunately that
doesnt work for people who live in high-priced markets.
But thankfully, we live in a world that has become much
smaller thanks to technologies like Google Earth, cheap nonstop flights and the ability to send photos instantly via your
phone. The need to drive by your property every day has
become obsolete.
At Real Wealth Network, we believe in having a much bigger backyard! We search the entire country for areas that are
ripe for investment. We look for areas with job and population growth, affordability and landlord friendly laws. Mostly,
we want to invest in these areas where rents are much higher
than the expenses so that investors can pocket the difference
as monthly passive cash flow.

Its a Sellers Market in California Time to SELL

and EXCHANGE for Something Better
The way to get rich is to buy low and sell high.
If you already own real estate in a high-priced market, this
is a good time to SELL since you can ask for top dollar and get
multiple offers. Then, with your profits, you can turn around
and BUY LOW in areas that are still up and coming.
We are currently helping many of our Real Wealth Network
members to take advantage of the IRS 1031 exchange that
allows them to sell their low-performing investment properties and exchange them TAX DEFERRED for much higher
cash-flowing property. They are thrilled to discover they can
triple and even quadruple their monthly income, and in many
cases, are able to retire NOW, years and even decades earlier
than they expected!
Passive investment in real estate can be one of the most
powerful options available to the average person.
Want to learn more? Visit RealWealthNetwork.com for free
education, mentoring and a strong, trustworthy network to
help you learn more about your options and maximize your
returns. We can help you find the best markets for investing,
and introduce you to experienced property managers, turnkey
income property providers, syndicators and highly reputable
real estate agents nationwide.

The

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A year ago, New York-based FirstKey

Lending was the first to step into a
new financing space making capital
accessible to small- and medium-sized
investors in one- to four-family residential rental properties nationwide.
The financial firms Chief Executive Officer, Randy Reiff, says the
firm purposefully positioned itself
to invigorate the small and middle
markets and to empower smart,
entrepreneurial investors to build and
optimize their portfolios and businesses.
The financial backing of Cerberus
Capital Management, L.P., one of the
countrys largest private investment
firms, gave FirstKey the opportunity to
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its attention on developing the products its customers needed.
Following the successful introduction of its Conventional fixed- and
floating-rate loan products for larger
investors needing $5M to over $100M
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Express loan product for investors
seeking loans of $5M or less in late
2013. That product has delivered in a
big way. Weve been thrilled at the
response of real estate investors to our
Express product, which we were able
to introduce in an affordable way by
streamlining the documentation and
closing processes, Reiff said.
These Express loans offer investors reduced borrowing costs and a
much more efficient process than was
previously available to these owners
so that they can buy additional one- to
four-family properties, refinance their
existing debt or cash out.
Reiff said that FirstKey has seen
strong demand for its products and
only expects that demand to increase.

Our business is accelerating as more

and more customers most of whom
have historically had only limited access to this type of financing become
aware of the variety of products FirstKey offers, Reiff noted. Historically, less than 25% of the borrowers
we are targeting have availed themselves of financing of any type. Were
very excited to see that number grow
as the rental finance market continues
to expand.
Reiff also pointed out that FirstKey
offers products to accommodate a
number of different types of investors. Theres been a lot of focus
recently on the very large investors
in the one- to four-family residential
rental properties, but its important to
remember that the largest segment of
this market is represented by the more
entrepreneurial owners who may own
as few as 10 properties or less, Reiff
said. These owners typically have
strong ties to their communities and
are looking to grow their portfolios in
a disciplined fashion over time. Were
here to make sure that these local
investors have the opportunity to grow
and develop their investments.
FirstKey couldnt have had better
timing in coming to market with a
lineup of new mortgage loan products
aimed at the small and middle market.
Looking to fill the void in affordable investment housing financing,
FirstKey has provided the fuel for real
estate investors to make it happen.
In addition to the successful launch
of the Express loan product, FirstKey
continues to be the market leader in
Conventional loan products geared
towards larger investors as well.
Whats more, CEO Randy Reiff
shared an exciting new loan program being rolled out for small- and
medium-size investors in an exclusive
interview with Realty411 magazine.

Randy Reiff, CEO of FirstKey Lending

FirstKey Lending closed

dozens of Express
and Conventional
Transactions recently.

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INSIDE: Strategies to Increase Your Wealth PLUS: Highlights from Our National Expos

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CashFlow Express
Ph: 805.693.1497
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NETWORK

The Voice For Hispanic Real Estate

Growth Equity Group

Guides Investors to

Exclusive Interview
by Tim Houghten

SAFETY & SUPERIOR CASH FLOW

Brett T. Immel and Preston
M. Despenas of Growth
Equity Group have been
giving investors more of
what they want and need
as they guide individuals
to higher yields, in safer
investment properties.

A frothy stock market, roller coaster oil prices, and higher taxes are just
the tip of the iceberg of issues battering investors today. Still, Growth
Equity Groups Senior Partner Brett
T. Immel says none of these risks
compare to the threat of rising rates,
and is adamant that interest rates
will go up.

The Growth Equity Group team: Brett T. Immel (left) and Preston M. Despenas (right).

IN SEARCH OF
BETTER INVESTMENTS

ever, perhaps most significantly of all,

it will be a blow to the yields and cash
flow of investors that drag their feet in
restructuring portfolios and locking in
the most attractive spreads on income
producing real estate.
For example, on $250,000 of leverage, if rates rise to 8% investors would
lose almost $500 per month in cash
flow, and would pay almost $200,000
more in interest alone over a 30 year
loan compared to a 5% rate today.
Multiply this by five properties, and
factor in rising asset prices, and this is
a million-dollar mistake that investors
will be kicking themselves for.

THE REAL RATE THREAT

Unfortunately, the vast majority

of individuals continue to seriously
underestimate the impact of higher
interest rates on their investment
portfolios, and lives. Whether it is
in six months or 18 months, Preston
warns that rising rates will impact all
businesses from mom and pop shops
to large institutions, and Fortune 500
companies. In turn this will obviously hit the wallets of everyone. How-

The need to switch portfolio holdings is clear, but many investors have
allowed themselves to be held back by
uncertainty and wanting to ensure they
make the perfect investment, all while
trying to find the time.
Banks havent been kind either.
According to many of the clients which
have reached out to Growth Equity
Group, it no longer matters if you have
been banking with the same institution
for decades, or have been depositing
millions each year; individuals are still
suffering from poor customer service,

The big question is where can investors

find an efficient solution for investing in
income producing real estate safely...
Realty411Guide.com

PAGE 20 2015

reWEALTHmag.com

Non-recourse financing is also

the perfect partner for those
investing with self-directed IRAs.
and being forced to
jump through more
hoops than a circus animal.
The big question is where
can investors
find an efficient solution
for investing
in income
producing real
estate safely,
and get access to
attractive long term
leverage that enables
them to fully capitalize
on the current market, and
lock in the best spreads?

THE GEG SOLUTION

Brett and Prestons solution has been

gaining quite a bit of media attention.
Providing assistance with self-directed
IRAs, and 24/7 access to everything
investors could want to know about
their investments via the GEGManager.com portal, investors have been
enjoying higher net spreads and
sleeping better than they have in over
a decade.
However, what really has Preston

their skin in the game and

back investors with
up to 60% no credit
check, non-recourse
financing, with 30
year amortization
payments.
Non-recourse
financing is also
the perfect partner
for those investing
with self-directed
IRAs. For example;
an investor using
just 50% non-recourse
financing and that has 50%
of their portfolio in income
producing real estate is really
effectively hedging 100% of their nest
egg value against inflation, while adding
double digits to their net gains each
year.
While GEG is a national investment
firm Brett T. Immel says the firm is
extremely bullish on Virginia right
now. This is the #1 state for business,
offers low property taxes, and has
added 200,000 new jobs since 2010.
Investors can find out more about
the strengths of VA and the fundamentals which are powering up the
local economy, and have enabled

NON-RECOURSE LOANS

Non-recourse loans are secured by real estate,

but for which the borrower is not personally
liable. This preserves personal credit and is an
indicator of properties lenders are extremely
confident in loaning on.
M. Despenas pumped up right now is
the pre-approved 5% non-recourse
financing that is being provided to
Growth Equity Group investors. This
means someone else with sizable
amounts of capital is willing to put

GEG investors to enjoy 100%

occupancy rates via the Growth
Equity Group blog.
The firm also recently unleashed
a brand new website re-design at:
http://growthequitygroup.com

VIRGINIA QUICK FACTS

Virginias population has
risen at every census since
1790.
Virginia is home to the
U.S. county with the highest
median income.
Virginia has the most
counties in the Top 100
Wealthiest in the U.S.
Seventh largest number
of millionaires per capita.
Ranked best for business
by Forbes.

Growth
Equity
Group
Top Photo:
Preston M.
Despenas;
Left: Brett T.
Immel

How to Survive

12 ROUNDS
in Real Estate

erhaps the most important question that all real estate investors
and coaches should be asking today is not where oil prices might
be in 12 months, or the best city to invest
in, but how to prepare and invest wisely
to thrive, and continue to survive any low
blows the next 12 rounds the real estate
market can bring. Sensei advises to keep
these six important tips in mind:
1. ITS NOT JUST ABOUT CASH FLOW
This is that time in the market cycle when
everyone starts claiming it is different, and that
common sense gets kicked to the curb providing
there is cash flow coming in. Passive income is
awesome. Cash flow Please sir, can I have
some more? But there is more than just income
to think about. Ask some of Senseis investors,
and theyll clue you into how the value here is
different.
2. DONT FORGET BENJAMIN GRAHAM
Warren Buffett will never let us forget his
favorite Graham quote: Investment is most
intelligent when it is most business like. This
is something Sensei Gilliland takes seriously
too. He believes in structuring well right from
the start and frequently hosts entrepreneurial
workshops for small business owners and real
estate CEOs.
3. YOU CAN DO IT
Believe you can accomplish those goals. If there
is one thing which may be the most destructive that emerges from the copycat epidemic,
it is close mindedness. Copycats have limited
programming. Theyre like Siri in Beta testing.
Unfortunately, this often spills out online in

popular forums with new gurus squashing the dreams of others. If you
have really thought through your goals and plans, have invested in education, and have laid out a roadmap to scale realistically; dont let some
newbie guru tell you that you cant grow to holding six or more properties very quickly. Look for those that will build you up, not try and tear
you down due to a lack of their own knowledge and experience.
4. NINJAS KNOW BEST
Real ninjas are tactical. They were about as opposite from the Vikings
in fighting style as you could get. They used a variety of tools to win,
didnt rush into the fray wildly, yet they knew when to take action.
Perhaps most importantly they appreciated training. Martial artists dont
train to just achieve a pretty colored belt and then rush off to try and
win a trophy and title, and leave their training behind. They are dedicated to lifelong learning, and improvement, and are never too proud to
step into a dojo and learn something new from a respected leader. The
same goes for real estate. When you stop learning, you have already
surrendered your trophies and titles, even if you dont know it yet.
5. ASK QUESTIONS
Before you sign up for a real estate seminar, training course, or invest
with someone, ask questions. Never be shy about asking questions.
What drives them? Is it just money, or is there more? How long have
they been in the industry? How many times have they changed company names? Interest rates are great now and you want me to take
advantage before they go up. But why lock me into a 10 year balloon
mortgage that will dump me into the market for a refinance when rates
may be at their peak in double digits?
6. ITS WHO YOU LEARN FROM
Tommy Nelson puts it as, If smart means you learn quickly, wisdom
means you forget slowly... All kinds of smart people have wrecked their
lives...Wisdom is not that youcan learn, butwhatyou learn.
There is a reason the entire nations education system is changing.
You may not think that they have it all right yet, but what the world has
realized is that we need both more practical hands-on training, and versatile problem-solving skills that can be applied to future scenarios as
they happen, and when no text books are laying around. This is where
Black Belt Investors training truly stands out. When you attend one of
these Black Belt Investors training sessions, expect to take action.
Youve got to learn the right investment strategies and tactics that will
get you profitably through tomorrow, not just today. A big part of that
is who you learn from. As in martial arts lineage is so critical. Youd
never jump into the octagon for a minute with a giant unless you were
pretty confident in your coachs proven ability to prepare you to win,
right? So why on earth would anyone put the rest of their financial futures, relationships, and lives in the hands of a coach that hasnt proven
they can last a single round yet? v

Investing Insights from a

REAL BLACK BELT

ensei Gilliland just kicked the real estate bandwagon in half.

If you want to lead, get to the gold, and keep it read this
Real estate master Sensei Gilliland has never claimed to be a
real estate investing guru. He has just put in the work, stayed
focused, and refused to be knocked out.
This warrior spirit didnt just lead him to become one of the youngest martial artists to be ranked in the nations top three, for five straight
years. It has earned him the title Sensei from his students, and makes
him one of the few REAL Black Belt Investors.
For nearly 20 years Sensei Gilliland has been investing in real estate
and he may be one of only a handful of notable trainers that still makes
money from investing in real estate today.
So what makes this guy different?

GOOGLE LOVES THIS REAL ESTATE INVESTOR

Sensei is the founder of 12 Rounds - The Wests Top Ranked Investors Club for Successful Cash & Wealth Building. We asked Sensei
why people keep flocking to his meetup group, and why people should
do business with Black Belt Investors. He said: In 2007 there were
over 100 real estate clubs in Southern California alone. When 2008
hit that number was slashed to around a dozen; and two of those left
standing were mine. Now there are even more clubs. But who will be
standing when the markets flex next time?
Of his ability to withstand the second most severe recession in our
countrys history, and how that is contrasted with the other 90% who
folded, Sensei says: They were very linear in their business models
and thinking, and were too busy selling retail. Everyone was just jumping on the bandwagon of these copycats.
If you really want to try to put Sensei Gilliland to the test in todays
ring he suggests you pull out your phone and see what Google says. We
couldnt resist the challenge! Try itTalk about mission impossible.
There are pages, upon pages of Google results for Sensei Gilliland, and
everything is positive. And this is a guy who says he has never worried

Sensei Gilliland, Black Belt Investors

much about SEO. Seriously, even your teenagers toughened video gaming thumbs would
probably fall off before you run out of positive
reviews of this guy.
Why does Google love Gilliland? Hes got
depth. He is established. He has a rock solid
reputation. And he has been in the ring since
before most people even thought about ever
using the internet to search for a home or a
home loan.
WHERE IS THIS REAL ESTATE NINJA
INVESTING NOW?
Most might have heard of Sensei Gilliland
for his power packed, hands on, real estate
training. Yet, he is still an active investor and
is in the market doing deals every day. Sensei says that while you still might catch him
helping distressed homeowners and serving up
sweet wholesale deals close to home in sunny
Southern California, he is also working with
serious investors in re-emerging markets such
as Cleveland, Kansas City, Indianapolis, and
Phoenix, Arizona.
Investors can check out more details and
find in-depth research on these markets at:
http://RemoteRehabs.com

BECOME A REAL ESTATE CHAMP

For new investors, intelligent experienced investors, and even new
gurus who dont want to get KOd and go belly up, Sensei extends
the invitation to step up, and check out the 12 Rounds Investment
Club. For information visit: http://www.meetup.com/bbinvestors/
This meetup is for those who want to enjoy long-lasting personal
and financial success from their real estate investments.

Article by Tim Houghten

Realty411Guide.com

PAGE 23 2015

reWEALTHmag.com

notes

Turning DISTRESS
Into SUCCESS In

The Paper Business

Article by
Tim Houghten
Staff Writer

Fuquan Bilal, founder of

National Note Group

Distress has a unique way of polishing success.

uch like the abrasive grain of sand that results in

the development of magnificent, beautiful pearls,
the trials and tribulations of the mortgage industry are now revealing their silver lining.
While the pain of foreclosures, an economy in rehab,
and building a business in turbulent times shouldnt be
minimized, the tests weve been through are being turned
into something positive by those that really care, and are
willing to put in the effort.
Fuquan Bilal, founder of National Note Group, knows
this better than most. While some media outlets have
posed that distressed property is declining in America, as
of February 2015 there were almost 5,000 banks holding
over $150 billion in non-performing mortgage notes, $600
million of this pool are newly defaulting real estate loans.
National Note Group has been working to not only help
heal the economy, and offer investment opportunities to
help individuals get ahead, but has been going to extreme
lengths to turn distress into sustainable success for homeowners.
Recently, in an exclusive interview Fuquan Bilal provided some of the most transparent, and detailed insight
behind the scenes of the mortgage note industry.

Realty411Guide.com

THERES A HEARTBEAT IN EVERY HOME

While some funds, firms and individual real estate investors have purely seen the financial struggles of American
homeowners behind on their mortgage payments, or in
foreclosure as an opportunity to seize more property and
make a quick buck; National Note Groups founder says
his firm takes a very different approach.
Bilal says it is crucial not to forget that theres a heartbeat in every home, and how devastating foreclosure
is. NNG goes to great lengths not to foreclose, and to find
winning, and sustainable solutions for both homeowners
and investors. In fact, Bilal says out of hundreds of loans
purchased in 3rd and 4th quarter of 2014, the firm had just
six REOs on the books in first quarter of 2015.
Going beyond simply offering loan modifications
to borrowers, National Note Groups team has gone to
great lengths to aid them in improving their finances so
that they can hold onto their homes, and enjoy a brighter
future. This has reportedly included helping individuals
leverage smarter spending and personal finance, without
becoming miserable by switching to more affordable >

PAGE 24 2015

Continued on pg. 30

reWEALTHmag.com

PROBATE REAL ESTATE

W

Article by Leon McKenzie,

U.S. Probate Leads

hether you are new to

the probate business
or consider yourself an
experienced professional, there are
times when you need to take a step
back and make sure that your business model isnt missing a potentially
profitable option. Probates, with
their deeply discounted prices and
motivated sellers, can provide opportunities that you simply cant find
elsewhere. These properties exist
in a wide variety of formats, from
small residential properties, to dream
homes to office buildings, and even
strip centers and warehouses. There
are many ways to find residential and
commercial options in probate real
estate.

WHY CHOOSE PROBATES?

In thinking about probate real estate,
it is important to understand why
so many investors are now specializing in this industry. While there
are many options in real estate if
you choose to become an investor
everything from foreclosures to
working with traditional buyers and
sellers there are few areas that offer
the deeply discounted prices and
flexible terms that can be found in
probate work.
The selling of probate real estate
and other property is handled by a
court appointed representative, called
an Executor. This individual can be a
family member, trusted friend or professional, such as an attorney or an
accountant. As part of their responsibilities, they have to find buyers for
the property that was left behind by a
Realty411Guide.com

court. During a private sale, there

would be no court oversight, but in
a probate sale, there is a need by the
Executor to quickly find buyers and get
the property sold. This is one reason
that the pricing can be so flexible in
probates. Additionally, if the Executor
lives out of state and tires of coming
back to deal with estate issues, they
may be willing to take a lower price
on a property if the terms are favorable
and allow them to wrap up the probate
more quickly.

familys loved one. The proceeds from

these sales go to not only the family
members, but to pay taxes, court costs,
medical bills, funeral expenses, and
other items such as past due credit card
charges. This property needs to be dealt
with in order to pay for these financial
obligations.
The process to buy or sell a probate
home is much the same as many other
types of properties. Brendan DeSimone
said, In a probate sale, the property is
marketed just like any other property.
The probate attorney or the estate representative will hire a local real estate
agent, sign a listing agreement, and
show the property, just as they would
a traditional listing. Generally, the list
price is based upon the listing agents
suggestions as well as an independent
appraisal ordered and issued by the

PAGE 25 2015

WHY LOOK AT BOTH

RESIDENTIAL &
COMMERCIAL REAL ESTATE?
What many investors dont appreciate is that there are far more options
in probate real estate than just single
Continued on pg. 48

reWEALTHmag.com

commercial

Finding Residential and

Commercial OPTIONS in

Choose YOUR
Lifestyle on

PURPOSE
I
By Linda Pliagas

ts 2015, welcome to to Loris

world. With a busy family of
homeschoolers, a thriving real
estate advisory, and a farm to
mange in prime Silicon Valley,
Lori Greymont is a 21st century
pioneer woman. Besides juggling
a busy family and business life as
the CEO of Summit Assets Group,
Greymont also manges a productive
and busy farm with a menagerie of
animals. Its a life planned deliberately
and made possible by the benefits of
real estate investing.

Greymont, who has been investing
since her early 20s, purchases,

Lori Greymont enjoys a simple country

life in high-tech Silicon Valley.

I live on an acre and a half in Morgan Hill. In the Midwest

where I grew up, this would be a postage stamp! Here in
Silicon Valley, its a good amount of land. We have horses,
chickens, dogs, cats and up until a year ago, two milk cows.
Greymont in the hope of helping others to
choose their lifestyle on purpose as well.

manages and sells assets throughout

the United States for herself as well as
hundreds of clients. While Greymont
and the majority of her clients live in
one of the most expensive areas of the
nation, when it comes to investing in
rentals, they prefer to venture out of
state. In particular, Greymont seems to
gravitate to Southern markets: Atlanta
and Birmingham have been favorite
spots. Recently, Linda Pliagas, the
founder and editor, interviewed
Realty411Guide.com

took action, and went for it. We moved in,

started work, ripping out carpet, tearing
out walls, hanging sheetrock, all the while
living in the broken house. She later
traded this house for another house and
we started all over. This may not seem
like that big of a deal, but this was over 25
years ago in a small Midwest town where
stereotypes were the norm and changemakers were not often welcomed. It didnt
deter her the least bit.

Linda Pliagas: How did you get started in

real estate investing?
Lori Greymont: I grew up in an
environment of real estate, but in an
unorthodox way. It all started when my
mom negotiated with a seller to buy and
fix his house, if he would be the lender.
She didnt attend any fancy seminar or
the like; she just knew what she wanted,

PAGE 26 2015

reWEALTHmag.com

Linda: Sounds like your

mom was special?
Lori: As you may know,
my mom recently passed
from her battle with
cancer. I had 18 months
of time with her because I
had set up my business as
a business. What I mean
by that is my business
was systems and people
based, not me based. I
was able to step out for
days or weeks at a time
and things would still be
happening. Essentially, it
allowed me to spend this
time with her, which was
not only a gift for me, it
was my give back to her for what she has
given me. She is my hero. My mom was
a serial entrepreneur. As a kid, I never
really paid attention to all that she was
doing but now I reflect on it in awe and
gratitude for the lessons I learned first-

a Christmas with gifts under the tree. So,

she talked to the owner of a grocery store
and secured the ability to sell Christmas
trees at the store that year. In September,
we went out to the farm and marked the
trees we wanted. Then, the day after

nine yards. After school

each day my brother,
sister and I would go to
our tree lot and setup our
homework on the table,
cook hot chocolate on the
stove, and sell trees when
someone knocked. There
were no video games or
TVs to entertain us. We
worked. She told us we
could have Christmas on
Christmas like everyone
else or if we wanted to
wait until a couple days
after Christmas, she could
get us a lot more because
of the clearance sales.
So, we sold trees until
Christmas Eve and had our Christmas a
few days later. In this simple example,
she was teaching us to live for what is
right for us, not to conform to the normal
status quo. She also taught us the value of
working.

I couldnt let fear be the master that enslaved me.

hand through lifestyle. They were lessons
not taught by words but by her life.
Heres an example of how she thought
outside the box. Shortly after my parents
divorced, she wanted to make sure we had

Thanksgiving, we set up shop. The trees

were cut the day before Thanksgiving, we
built stands to hold the trees, had a small
travel trailer placed there to sit in during
the cold, hand painted signs the whole

Top photo: Lori is surrounded by family:

Her daughter, mother and sister. Below:
Her recent Atlanta tour was a huge success.

Linda: When did you buy your very first

house?

Lori: I bought my first personal
investment at age 20 when I was still in
college. It was a 3 bedroom house on
aHUD program with $500 down and
18% interest rate. I didnt have a job,
but I was able to qualify for the loan
on my own by getting leases signed for
the income. I rented out 2 bedrooms
and finished out the basement as an
apartment. It was my first experience
receiving cash flow and I was hooked.
I upgraded to a better cash flow house
a couple years later and havent looked
back since.
Linda: How did you learn to get over
your fears?
Lori: As mentioned above, I was raised
in the shadow of a powerful business
woman, my mom. She taught me that I
can achieve or have whatever I set my
mind to. With that kind of knowledge, I
didnt feel constrained by fears. I felt like
whatever problems came up, I would be
able to solve it somehow.

>

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PAGE 27 2015

reWEALTHmag.com

We have all heard the mantra is: Go to

school, get a degree, get a good job. I
actually started down that path. Then,
I saw death and the fragility of life in a
very real way. My moms sister, brothers,
mother and father all died in less than
three years. Her siblings were young and
in the prime of their lives.
One thing I remember hearing growing
up was When I retire, Im going to
and none of them made it to retirement.
I decided that death was going to come
some day, and so I needed to choose to
live every day to its fullest. I couldnt
let fear be the master that enslaved me.
Think about it, how many people live
a passionless life because of the fear of
something they arent doing? Why not

I wanted to do for the remaining years of

my life. With that decision, I knew that
owning my own business was the key
to my plan. So, I finished my degree as
a backup plan and started on my path of
being a business owner. I was determined
to live a no regrets life.
Linda: You often mention that you live a
contrarian life, what does that mean and
why?
Lori: My use of the phrase contrarian
life is to explain that I dont conform to
the normal for the sake of fitting in. It applies to my life as a whole in most of the
major decisions. I do the things that I want
to do, regardless of how it might appear to
others.

for you when you know the source is clean

and safe. And nothing beats all the yogurt,
cheese and kefir you can make with the
whole fat milk straight from the cow!
We also raise and butcher our own meat.
Now, there is no way I have room on my
little amount of land, but I partner with
others who have the land so I know whats
going on my table from start to finish beef, pork, turkey, lamb, etc.
Until my mom needed my attention,
I homeschooled my four children with
the help of local co-ops. When I told my
family 15 years ago my plans for school
my brother asked Are you going to
brainwash your kids? and I thought for a
moment and replied, Yes. My internal
thought was, Yes, as a matter of fact I
am! I am going to create God-fearing,
people-loving, creative, problem-solving,
entrepreneurial adults.
I now have two heading off to college
next year. They are all that and more, not
because of any one person, but because
of their lack of fear to get what they want
and their love of learning.
Look, I have the same concerns and
cares in this life as everyone else does.
I just choose to seek out an answer that
fits what my goal is, not just settle for the
obvious or common answer. I choose to
create the lifestyle that supports the aspirations, goals and dreams of my family and
then I put the construct around that to
support it.
Linda: Isnt it expensive to live your
lifestyle?
Lori: You might think to yourself, thats

We have transacted over 1,600 properties since 2010 and

in each case we feel we have added value to the people in
the transaction, the homes and the communities.
do it and see if that fear thing actually
materializes? Most likely it wont and
you will know for sure.

I live on an acre and a half in Morgan

Hill. In the Midwest where I grew up,
this would be a postage stamp! Here in
Silicon Valley, its a good amount of land.
We have horses, chickens, dogs, cats
and up until a year ago, two milk cows. I
would milk my cows once a day and local
families would help consume the copious
amounts of excess milk I had. We drank
it raw! You might be thinking eww
or is that safe? but, with education, you
would find that raw milk is much healthier

Linda: How did that life event change

you?
Lori: I decided I was going to create
the lifestyle I wanted. I would live life
each day rather than plan for it when I
retire. I refused to work 40 hours a week
for 40 years at a job I hated so I could
have enough money to go do the things
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PAGE 28 2015

great, you have all the money you want

to do that! The truth is I didnt start with
money as a factor in the picture at all. I
made decisions on what I wanted and then
I found a way to make it happen. Whatever resources I was lacking, I partnered. I
became a deal maker in my personal life
and my professional life. I am a Both/
AND person not an Either/Or. I want
both. I want my cake and I want to eat it!!
This is what I mean by I live a contrarian
life. Rather than just floating down the

reWEALTHmag.com

sea of circumstances life gives me, I make

deliberate choices to create the life I want
now and in the future.
Linda: If there is one trait an investor
needs what is that trait?
Lori: Decision making. Its not just a skill
needed as an investor, its a skill needed
in life. Decision making is a process, but
no one is teaching it. Instead people are
left to feel their way through or to develop
a process that works for them, until they
make a bad decision and then they are
stuck. I never realized how hard it was for
people to make decisions until I started
teaching real estate investing. People
get stuck at the decision stage and never
move forward, which in and of itself is a
decision. I have created a decision-making matrix I use with my students, but it
really comes down to one simple question:
Which decision are you going to regret
more at the end of your life? The time you
waste waiting to make the perfect decision
is time that is lost because Time is the
only thing in life that we never get back.
If you make a decision and you lose money, you can earn that money back. So what
if you make a mistake? Try again. If you
let time slip by and you never try, you are
left with regret. I want to live my life to
the fullest that sometimes means failing, but you can never find out if success
is there if you dont try.
Linda: Is real estate investing for everyone?
Lori: I personally think it is, if you are
looking to build wealth. When you look
at where most of the wealth is built, you
will find it is in real estate for several
reasons: Its real, its insurable, its in
demand, it appreciates in value faster than
inflation as an average, and it can be leveraged. You cant do that with traditional
investments like stocks, so its safe if you
invest with the fundamentals in mind.
Linda: Have you encountered any challenges that you think are unique to being
a woman in real estate?
Lori: In my current business, I often work
with contractors that are rehabbing my
homes. I have been rehabbing since I
was a teen, meaning physically doing the
work. So now that I am the owner hiring
the work to get done, its not uncommon
for a contractor to offer a solution that
costs more than necessary.
Realty411Guide.com

The riding trails near her home offer

Lori the tranquility she needs to balance
her busy life as a local real estate leader.

I will listen. Then I tell them how I

would like it done and pretty much dont
leave any ambiguity that I am correct. I
usually get the response of Oh, I didnt
think of that, or Yes, that will work.
Unfortunately, there are some people who
have an issue with a woman directing the
job. Ive learned to part ways amicably
and move on. There is no value spending
valuable energy trying to change their
opinion.
Linda: What do you love most about
investing in real estate?
Lori: Making a difference. Our mission is
to add value to people, homes and communities. Real estate is the one business
that encapsulates all of that. I especially
enjoy helping people over their fear of
whatever is holding them back from crePAGE 29 2015

ating the life they want. This starts with

one decision on their part to make real
estate part of their portfolio, and then we
go from there. I also enjoy the hunt of the
deal. I love cash flow each month off the
properties. It comes down to improving or
adding value to make a positive impact.
Linda: What is your biggest accomplishment so far?
Lori: Besides raising my children in the
business along side of me, my biggest
accomplishment has been making a difference that can be measured. We have transacted over 1,600 properties since 2010 and
in each case we feel we have added value
to the people in the transaction, the homes,
and the communities. When people were
Continued on pg. 62

reWEALTHmag.com

The distressed mortgage market

is massive, and even when you are
capable of raising millions rapidly like
Berkshire Hathaway and National Note
Group, youve got to be able to deploy
capital fast, and efficiently in order
to maximize investor returns, and the
potential of your organization.
Bilal says that he tackled this challenge early to ensure scalability, speed,
and efficiency
by getting
serious about
FLIPPING
LEVELS
Process Mapping. He explains that by
Wholesale
documenting
processeswith
the first time
around,assignment
leveraging Microsoft
Excel,
contract
and better managing data the firm
is able to hire
and scale with
effectively,
Wholesale
eliminatepurchase
human error,
and
operate
& resale
leaner and more profitably, with better
margins
than others.
Cosmetic
added value
It is from this vantage point that Bilal
Structural
added
valuebetter
says the
firm is able
to provide
service, financial strength and security,
Added and
value
with tracking
more investment
portfolio
tools, and advanced
training through
new addition
the NNG Academy.
Scraper with new build

Copyright: pressmaster / 123RF Stock Photo

founder says turning these practices into

regular habits just like brushing your
services like Netflix and Metro for
teeth every morning makes
all thewith
difcelebrate
where you want to focus.
High
End
Flip
Requirements
phone and TV, assisting in job
searchference
in
staying
on
track.
It
helps
keep
your workers
Dont be in too big a hurry
es
and
arranging
interviews
for
the
you
refreshed
and
charged,
though
Bilal
and team, and
or you will overpay. Know
Design as important as
unemployed,
and even
those
says it also helps when you
areitreally
when
closes,
what
your maximum
pricehelpingsq.
ft. & neighborhood
with
homes
that
are
now
too
large
to
passionate
about
what
you
are
doing. In
celebrate
is before you offer and
Exceptional curb appeal
strategizeDont
renting
to students
this experts case he saysagain!
he doesnt
Then feel
negotiate.
fall rooms
in
Dramatic architecture
for extra
income.
like he is really working at
all,some
and of
often
take
love
with it;
be prepared
but not eccentric
your profits
to walk away if it doesnt
hops out of bed in the middle
of the
Hire
an architect
Harnessing
Elite
Focus
buy some
pencil
out. Afteran
you
win,Level of
night with new ideas andand
strategies
for
Open floorhelping
plan and
do your homework, set
homeowners. long-term hold
subsSo
in how
place,does
prepBilal
for permanage it?
great room However, the National properties
Note Group
for inflation
mits
and be
ready to demo
Clearly,
consistently
maintaining
a
Volume
(cathedral
executiveand/or
says that he absolutely
relies
hedging
assets,
on
daylevel
one after
COE. effectiveness,
clear
of focus,
on having an amazing team
for executhigh ceilings)
for passive
Setcreative
artificialstrategic
deadlinesthinking that
and
ing on use
all ofathe
Totally updated;
de-companys objectives.
income,
and
and/or
give
contractors
can deliver on the above without
Bilal describes his approach
to leversigner & pro-appliances
for
future
early
incentive
and
penalty
becoming burned out, and operating
aging
top industry talent not only by
High quality
consistent
clauses.
Set
high
expectaretirement.
v
a multi-million dollar business that
offering good compensation, but by emfinish throughout
tions
and
drive
for
closure.
juggles hundreds and thousands of
bracing working with people smarter
Use planning tools to
Tom Wilson
second mortgage loans, and provides
than me, treating them asispartners,
not
make sure no material or
a 37-year
double-digit returns to investor clients
employees,
and
giving
them
the
authorisubsequence delays the project. Motivate
real estate veteran who has executed over
requires a lot more of a CEO.
ty, andand
creative
beestate
their best.
your crew with compliments, buying
$100M
2,000 liberty
units of to
real
Among
his
secrets
to
enhanced
lunches, bonuses; let them know that you investments. Wilson is also a weekly host
performance
and
success they
Bilalare.
tells
us of the Real Estate
When
Youve
feel
that they are
important,
Get
360
Radio Got
program on
his
daily
routine
includes:
Starting
Warren
Buffett
Size Problems
rid of non-performers. Re-evaluate your
KDOW 1220 am every Wednesday
at 2
each day
with 24
medimarket
carefully
andminutes
set yourof
specific
pm. Listen to his podcasts on iTunes or his
tation; one
for every hour in
When
you are tackling a national
strategy
whenminute
you list.
website:
http://tomwilsonproperties.com
theAnd
day,
as the
wellproject
as daily
exercise,
when
is complete,
challenge that dwarfs Warren Buffetts
and practicing time blocking. The
wealth it requires a great system.

Turning Distress into Success, pg. 24

(Speculation home)
For more information, please visit the
firms new website, tools and trading
desk at www.NationalNoteGroup.com.

INVEST
WITH
CONFIDENCE
INVEST WITH CONFIDENCE
I M M E D I AT E C A S H F LOW
I M M E D I AT E C A S H F LOW
D
D

iscover the lowest-risk, highest-quality residential investment properties in t

country.
Using sophisticated
methodology,
the best
investment
iscover
the lowest-risk,
highest-quality
residential investment
properties
in theproperties a
country.
Using sophisticated
methodology,
the best
properties
are to secure
carefully
selected
by an experienced
investor
andinvestment
rehabbed
beautifully
carefully
selected
by
an
experienced
investor
and
rehabbed
beautifully
to
secure
the flow, you
best tenants. With competent property management, and instant cash
best tenants. With competent property management, and instant cash flow, your
investment
pays
worry-free
dividends
from
day
one.
investment pays worry-free dividends from day one.

PROFILE
OF
YOUR
FUTURE
PORTFOLIO
PROFILE
OF
YOUR
FUTURE
PORTFOLIO

Highest
Flow
HighestCash
Cash
Flow
Lowest
Properties
& Cities
LowestRisk
Risk
Properties
& Cities
Immediate Equity
Quality
Immediate
Equity
Newer Brick Homes and Stable Neighborhoods
Quality Newer
Brick
HomesLeased,
and Stable
Neighborhoods
Turnkey
Clear Title,
Rehabbed,
Managed
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Clear Title, Rehabbed, Leased, Managed
Home
Warranty

Typical Property
Price $139,000
Home Warranty
Rent $1,395
Contact
Year Built
2001
Price: $110,000,
fully renovated,
built 2005
free cash
Currently Rented
4 Bed for
2.5$1,195
Baths
e: $110,000, fully renovated, built 2005
ently Rented for $1,195
Mention
Voice Magazine
and receive
one-year1 of
free
MentionREI
Realty411
or reWEALTH
and receive
year
property
management
premium
home
warrantywith
withyour
yourfirst
firstpurchase.
purchase. PAGE 31 2014
Realty411Guide.com

Mention REI Voice Magazine and receive one-year of free

Realty411Guide.com

30 362015
Realty411Guide.com
2014
property
management with your
first purchase. PAGEPAGE

me for a
Contact
for a
flowme
analysis.

free cash flow

analysis.
TOM WILSON, President

408-867-1867

TOM WILSON,

TomKWilson@earthlink.net
reWEALTHmag.com Presiden
TomWilsonProperties.com

408-867-1867

reWEALTHmag.com
reWEALTHmag.com
TomKWilson@earthlink.net
TomWilsonProperties.com

P R I VAT E

Featuring Randy Reiff, CEO

of FirstKey Lending, LLC

411

The Source for Real Estate Finance

SPECIAL ISSUE

Exclusive interview with

Tim Herriage, Managing
Director of B2R Finance

Mark Hanf writes on

Attracting Private Money
Plus, Insight from
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FirstKey Lending
Offers Innovation
Makes 30 Year Loans Available to Portfolio Borrowers

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Money411
P R I VAT E

Photo right:
Tim Herriage,
Managing
Director
for B2R
Finance,
pg. 36

CONTENTS

36 Tim Herriage with B2R Finance

38 Networking Tips for Business
40 New Options for Investors
from FirstKey Lending, LLC
44 Strategies for Private Lending
45 Celebrate Private Money411
46 Applied Business Software

CONTACT US:

805.693.1497 or
info@realty411guide.com
Be social and receive updates on:
Facebook, Twitter, LinkedIn,
Pinterest, Google+ and more
Important Disclosures for Our Readers:
The information provided therein do not
constitute an offer or solicitation to buy or sell
securities or real estate. Please be aware that
real estate investing can be risky. Realty411,
the publisher of Private Money411, is not
responsible for any information provided and/
or statistical data presented, and does not
reflect the opinions, advice or research by us.
Readers are 100% responsible for their due
diligence, for all investment information and
for all decisions with respect to any potential
investment or transaction. 411 recommends
readers seek the advice of a trusted attorney,
broker, CPA and/or financial adviser before
investing in real estate.

PRIVATE MONEY 411

Cover: Randy Reiff, CEO of

FirstKey Lending, LLC,
introduces 30 year mortgage
loans for portfolio borrowers.

Photo above: Mark Hanf with

Pacific Private Money, pg. 38

Mingle with hundreds of active

investors in Las Vegas, Nevada.
Private Money411 will be hosting
industry gatherings with a focus on
technology and finance. For more
information, see our ad on page 45.

Photo left:
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Applied Business
Software, pg. 46

The Source for Real Estate Finance

Realty411Guide.com

PAGE 33 2015

reWEALTHmag.com

Were the Northern California leader for loans

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B2R Predicts Strong Year Ahead

for Rental Home Market
W

About Tim Herriage, Managing Director and Head of

Marketing and Business Development A 12-year real
estate investment veteran, Tim has purchased more than
1,000 single-family houses, many of which he holds as
rental property today. He is the founder of the largest individual investor-focused trade show in the
U.S., the REI Expo, building on his passion for real
estate investing and the opportunity it represents for
those who want to take control of their retirements.
Tim Herriage also proudly served as a sergeant in
the United States Marine Corps.

hen B2R Finance

launched its
first products in
late 2013, it was
a game changer
for rental property investors.
The company
was among the
first to offer
a financing
option designed
specifically for
small to mid-sized
buy-and-hold real
estate investors.

short, these
homes were
unleveraged
because of a
gap in the market. B2R and our
competitors fill the
gap. As these smaller investors become more liquid, we
could see them pursue additional investment properties or reinvest in their current
properties, adding activity to the market.
Second, homes continue to recover value lost during the Great Recession. While
there is some speculation that declining
foreclosure activity might weaken the
overall opportunity, most of the investors
we encounter have always acquired sound,
cash-flowing rental homes from traditional
sources. Fewer homes underwater actually
mean an increase in the overall value of
our investors portfolios.
Changing demographics also serve to
bolster the SFR market. According to a
report from the Harvard Joint Center for
Housing Studies, 35 percent of households
rent, up from 31 percent in 2004, and of
them, 20 percent report no intentions to
buy, either because of macroeconomic
conditions, personal financial concerns or
for reasons of preference or lifestyle.
A growing renter base leads to lower
vacancy rates, which has led to favorable
rents for our investors. The average national effective rent rose 12 percent in the

Fast forward a year, and

the company is growing rapidly,
indicating a bright future for B2R and
the single-family rental market. This
year, according to Managing Director
Tim Herriage, B2R has ramped up to
meet the pent-up demand as one of just a
handful of companies offering this type
of product, and has added approximately
50 employees spread across three offices
in Charlotte, New York and Dallas. The
company is also looking to the future,
shoring up its leadership team by adding
highly strategic and experienced leaders
in new roles of CFO, COO and CEO.
Realty411 asked Herriage, also a longtime investor in the single family rental
market, whats next for the sector.
Herriage: We remain bullish in our
outlook for a number of reasons.
First and foremost, demand remains
high. As your readers are well aware,
98 percent of the nations estimated 14
million single family rental homes are
owned by smaller investors, but access
to credit for these investors had previously been incredibly restrictive of
the millions of homes owned by small
investors, 10 million are not financed. In
Realty411Guide.com

PAGE 36 2015

last four years.

Overall, the market is strong, with
returns averaging 9 percent, according to
Daren Blomquist, vice president at RealtyTrac, and annual gross returns reached
as high as 41.57 percent in Edgecombe
County, N.C., the highest of all the 586
counties recently analyzed.
A recent Yahoo Finance story probably
sums it up best. In the Oct. 31 article, an
investment banker who focuses on putting
together deals that package loans to
investors noted, The real market is this
market. Its where everything is actually
going to get to.
About B2R Finance:
B2R Finance, Americas Buy to Rent
Lender, is the leading provider of residential buy-to-rent mortgages for property
investors, with offices in New York, Charlotte and Dallas. The Company offers
effective and innovative lending solutions
dedicated to residential rental property
investors. B2R operates in partnership
with the nations leading commercial and
residential real estate experts to ensure
that its loan products and customer
service are in the forefront of the growing
residential rental investment market. B2R
can assist any size investor with a variety
of lending products to enhance customer
investment. Further information is available at www.b2rfinance.com or on Twitter
@B2RFinance.

reWEALTHmag.com

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pricing on you mid-stream.

By Mark Hanf, Pacific Private Money

eople are always asking
me how I was able to
build my private lending business so quickly.
How did I attract several
hundred investors in just a few short
years? Well, the simple truth is that I
discovered how to network effectively. Networking, as I define it, is

how I went from zero borrowers and

zero investors to writing nearly 1,000
loans and attracting over 400 investors
during the past five years was a result
of daily conversations and a series of
mini-explosions in growth, all from
forming new relationships.
Now when it comes to networking and
talking with people, heres an important

EFFECTIVE NETWORKING

for Your Business Success

PacificPrivateMoney.co
few questions to find

When I attend an event, my

goal is not a certain number
of connections but at least
ONE KEY connection.

the act of building your

business one relationship at a time.
Effective networking
is based on the premise
that how we show up
in the world is key to
attracting success.
My view of Effective
Networking is based on
three premises:
Our lives succeed or fail gradually,
one conversation at a time.
People dont like being talked to.
They want to be talked with.
The simple truth is, people do business with people they like.

out who they are and

what
theyre doing,
Loans@PacificPriv
and whatever they
say, I find a way to be
agreeable and compliPacic Private Money Inc. CA Dept
mentary about it.
So, for example, Ill
find out where in the
area theyre from, and I
might say oh, yeah, thats a really nice
area; or if they tell me theyre doing
fix & flips I might say yeah, I have
several friends who are doing really
well with that. Hows it going for you?
As I probe about them, whatever I find
out, Im agreeable and complimentary
about it.
So the initial interaction with someone is not so much how are you but
who are you. People love to talk about
themselves, so I always make the initial
interaction revolve around them first.
And the most important component I
bring to each conversation is authenticity. People need to perceive you as
authentic. They need to perceive your
compliments and agreements as genuine
and not forced.

concept: When you meet people, try to

speak and listen as if this is the most important conversation you will ever have
with this person. Because, quite frankly,
it is. First impressions are always the
most important we all know this. So
make sure that your first impression is
an attractive one.
One of the methods I employ is
a strategy best described by expert
networker Scott Ginsburg, who wrote
The Power of Approachability, and
heres how he puts it: Make people
fall in love with you by helping them
fall in love with themselves first. You
do that by giving them a front row seat
to their own brilliance. The way I try
and do that whenever I meet someone
is to immediately engage them with a

A key point to keep in mind is that,

while no single conversation is guaranteed to change your life, any single
conversation CAN. The conversation IS the relationship.
As I network, Im ever mindful
of a quote from real estate expert
Robert Helms, who said we are all
just one relationship away from an
explosion in our business!
I know this to be true, because

Realty411Guide.com

Lea
you
len
cop
boo
Attr

PAGE 38 2015

WE MAKE BORRO

reWEALTHmag.com

You see, authenticity is the new currency in business today!

Why? Consumers today are more
aware and hypersensitive to sales tactics
because they are bombarded all day
with propaganda from radio, newspaper, TV and, now more than ever,
the Internet. The number of
marketing messages
we receive each
day is astounding.
Our phones ding
and ping all day with
incoming emails and
text messages. People
are not having effective
communications like
we used to, and whether
they know it or not, they
yearn for it.
So, I repeat: Authenticity is the new currency
in business today!
Your authentic self
is who you are when
you have no fear of
judgment. Its the person
you are before the world
starts pushing you around
and telling you who you are
supposed to be. And the truth
is that the real you is the best
you, and its the most powerful
tool for forming real connections that
will grow your business. One of the
keys to authenticity is being relaxed,
genuine and friendly. Another key is to
be informal. I tend to be very informal
with people Ive only just met. Ill start
talking to them as though I have already
had a warm introduction. I have found
that to be very effective and in fact it
tends to disarm people very quickly.
Rarely have I found resistance to this
tactic of using informality and literally
just striking up a friendly conversation.
So for me, when Im networking, Im
not trying to be impressive, but rather

Realty411Guide.com

to leave an impression. In addition to

being authentic and genuine is that I
practice what I refer to as transparency. Some call it wearing your heart
on your sleeve. So, for example, when
Im talking
to someone about my
business,
especially
my business
success, I
make sure I
slip in some
humility,
which
for me is
oftentimes
the story
of how I
ended up
in this career, which
includes
how I experienced
failure
when the
real estate
market
turned in 2007.
Since many of the
people I network with
are in the real estate market in
some form or fashion, by revealing
some humility, I give them permission
to share their own particular experience
without shame or judgment. And thus,
we have a
bonding experience!
Sharing what is real about you is the key
to building real relationships with others. When you show your authentic self,
people will respond in kind. Moreover,
being ourselves is our defining feature!
Its what sets us apart from our competition!
I will tell you right now that if you
asked me what was the one thing that
helped me be most successful I would
tell you that it came from the fact that

PAGE 39 2015

I learned to become good at being

authentic and comfortable with being
transparent.
Many dont realize just how attractive it is to others when you wear your
heart on your sleeve and you are approachable and disarming. Now I will
admit that transparency is not always
easy and for many it takes courage.
Wearing your heart on your sleeve
takes guts.
In networking, the goal is making
a connection, which then leads to a
relationship.
Communicating effectively is all
about how you show up in their world,
in their universe. Effective networking
is not about you. Its about how you
make others feel about themselves.
Now a lot of networking experts will
tell you how to work a room as though
the goal is about transactions. In other
words, getting in front of as many people as possible, making it a numbers
game. There have been books written
about this. But I disagree. Building relationships, in my opinion, is not about
transactions, its about connections;
and not just any connection but effective connections. Its about creating
opportunities for genuine and authentic
interactions that lead to advantageous
opportunities for both parties.
When I attend an event, my goal is
not a certain number of connections but
at least ONE KEY connection. So in
Effective Networking, the conversation
IS the relationship, and the result of a
continual flow of new relationships is
explosive growth in your business.
Excerpted from the program The
Insiders Guide to Attracting Private
Money by Mark Hanf, available at
www.AttractingPrivateMoney.com.
Mark is broker and president of Pacific
Private Money, one of Northern Californias most respected private lenders.

reWEALTHmag.com

FIRSTKEY LENDING

Continues to Innovate

Randy Reiff, CEO of

FirstKey Lending, LLC

Makes 30 Year Loans Available to Portfolio Borrowers

irstKey Lending revolutionized the real

estate market for entrepreneurs investing in
residential rental properties when it began
offering its one of a kind single-property
loan product earlier this year. A fully amortizing
30-year fixed rate loan with competitive rates and
no prepayment penalty. FirstKeys Express single-property loan product offered entrepreneurial
landlords the ability to manage their cash flow by
avoiding interest rate risk and large balloon payments at the end of the loan term.
We saw immediate demand for our Express
property loans, says Randy Reiff, CEO of FirstKey
Lending.

But, as a market leader, FirstKey is committed to

making it even easier to invest in one- to four- family
rentals and is constantly innovating to provide additional financing options to current and prospective
customers.
Responding to the success of its Express property loan product, FirstKey recently made significant
enhancements to the Express program to bring the
benefits of this unique product to entrepreneurial customers who own portfolios of more than 10 properties.
FirstKey is now also offering 30-year fixed rate
solutions for portfolio loans of up to $5 million dollars with no restrictions on the number of properties
financed. Like the single property loan, these portfolio
Continued on pg. 43

Realty411Guide.com

PAGE 40 2015

reWEALTHmag.com

Youre looking to build your

rental portfolio. Weve got the
tools to help you do it.
We finance one
property or many
properties

No limit on how
many houses you
can finance

Loans of
$75,000 and up

30 year fixed rates

We can help you

refinance or buy
more investment
properties

Fully amortizing

No prepayment penalty

Lower your Rate

Grow Your Portfolio

Manage your Cash Flow

Take Cash Out

Contact our SFR Specialists today to get started!

1-844-474-5076 | www.firstkeyrentalfinance.com
FirstKey Lending, LLC only makes loans for a commercial or business purpose and does not make residential mortgage loans. Loan products
may not be available in all states and are subject to credit application and approval. This is not an offer or commitment to lend. FirstKey Lending
operates out of several locations, but not all locations conduct business in all jurisdictions. FirstKey Lending, LLC an equal housing lender. 4 International Drive, Rye Brook, NY 10573. Tel: (888) 707-5040. NMLS Unique ID No.1063414 (www.nmlsconsumeraccess.org). FirstKey Lending products
and services offered in California are made or arranged by FirstKey Lending CA, LLC pursuant to its California Finance Lender Law License. Arizona
Mortgage Banker License No.0925342. Loan products may not be available in all states and are subject to credit application and approval. Other
restrictions may apply. Rates, terms and products subject to change without notice. This is not an offer or commitment to lend. 11/2014

 Residential
Raw Land
Auctions
Leveraged

Commercial
Agriculture
Options
Short Sales

Fix and Flip

Fix and Hold
Trust Deeds
Mineral Rights

Put your Real Estate Expertise

to work for your IRA

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Personalized Customer Service
Online account access with myDirection

www.NewDirectionIRA.com 1-877-742-1270 info@ndira.com 1070 W Century Dr, Ste 101 Louisville, CO 80027

FirstKey Lending Offers Innovative Opportunities, pg. 40

loans have no prepayment penalties, making them even

more attractive for entrepreneurial investors who want
to lock in long-term financing but maintain flexibility to
sell assets or manage their investments.
The needs of entrepreneurial investors are not
necessarily the same as institutional investors. With
the introduction of this product, we are giving customers
who are a bit less rate-sensitive the ability to choose a
long term, fixed rate solution with complete prepayment
flexibility, said Reiff. Recognizing that the needs and
aspirations of entrepreneurial borrowers might change
over time is what inspired the original 30-year property
product, and we are now thrilled to make it available for
customers who want to borrow up to $5 million against
their multi-property portfolios.
FirstKey was the first national lender to target
entrepreneurial borrowers in the rental finance space
and has prided itself on innovating a wide variety of
programs meant to make it easier to invest in the SFR
market.
For FirstKey, its not just about the borrowers credit
score, but the strength of the borrowers investment.
FirstKey looks primarily at the propertys value and
the cash flows to determine the investments ability to
service and ultimately repay the debt. This evaluation
model can make FirstKeys financing products accessible to a wide range of customers.

With the introduction of this product, we are giving

customers who are a bit less rate-sensitive the ability
to choose a long term, fixed rate solution with
complete prepayment flexibility, said Reiff.
For entrepreneurial investors more interested in
optimizing rate than term, FirstKey continues to offer
Express portfolio loans under $5 million for 5, 7 or 10
years at some of the lowest fixed rates available in the
SFR space.
FirstKeys wide range of products also includes
options for many other types of investors. Premier
provides non-recourse loans from $5 million to $500
million to mid-size and institutional rental investors.
For entrepreneurs more focused on fixing properties
and selling them, FirstKey also offers loans for rehab
projects between $100,000 and $1,000,000 through its
Fix & Flip program.
We are proud to continue innovating and improving
our market-leading products to serve the unique needs
of our entrepreneurial and institutional investors, said
Realty411Guide.com

Reiff. Whether one property or 10,000, our suite of SFR

finance products provides a variety of solutions to the entire
spectrum of investors.
FirstKey continues to simplify the logistics of all its
programs, streamlining the documentation process and increasing the ease of closing. These efforts make it easier to
manage expenses and navigate the process for customers
who may be financing their investments for the first time.
FirstKey is backed by Cerberus Capital Management
L.P., one of the countrys largest private investment funds,
giving it the resources it needs to continue advancing in the
market. FirstKey management said the recent moves were
an effort to continue offering exciting new options and the
value that its customers have come to expect.

More information, please visit: http://firstkeylending.com

PAGE 43 2015

reWEALTHmag.com

Is Owning Investment Property

the Best Way to Generate Income

from Real Estate?
Insights by GCA Equity Partners, LLC

WHY I LIKE PRIVATE LENDING

Private lending simply means providing loans that
are secured by real property. The investor/lender
earns money by collecting interest for their loans
and in some cases can also profit from appreciation in the property that they are lending against.
Private lending isnt for every investor, but the
following are some of the reasons why I like it as
part of my real estate investment strategy.
1) The returns can be as good, or better than
those you get from renting property.
2) Your loan is secured by the equity in the
property you are lending against.
3) Since you dont own the property, you
dont have to manage tenant or maintenance
issues.
4) You can invest in loans made against a
wide range of property types.
5) Many different lending models are available from one investor / one loan to pooled
funds.

I Want to Share a
Secret with You
I used to believe that the only way to generate income
through real estate investing was by owning property
and renting it out. I bought (and later sold) single family
rental houses, fixed them up whenever necessary, and
found tenants for each of them.
What I quickly learned was that being a landlord
wasnt as easy as I expected. I had to deal with tenant
issues and maintenance problems, and pay for extras I
hadnt really considered like insurance and property taxes. (I quickly found out why landlords like to complain
about the three Ts tenants, toilets, and taxes!)
I didnt realize that there was another way to create
income through real estate investing a way that more
sophisticated investors had figured out which earned
them solid returns without the hassles of owning property directly. Its called private lending.

Realty411Guide.com

DIFFERENT PRIVATE LENDING MODELS

The most basic private lending model is to provide first
mortgages to individuals or entities that need them to buy
or refinance a property. In this case, the loans may be
structured in two ways. First, as fully amortized, meaning
principal and interest are repaid together on a regular,
periodic basis. Alternatively, as interest only, meaning only
regular, periodic interest is paid during the life of the loan,
with the principal repaid in a single balloon payment at the
end of the loan.
Another model is to provide second mortgages to borrowers, typically for a higher rate of interest and structured
as fully amortized or interest-only loans. These second
mortgages can be higher risk since, in the event of a default, foreclosure, and/or property sale the first mortgages are paid off first and any remaining money is used to
pay the second or further subordinated mortgages.
A third model is known as shared equity. In this model,
the lender provides the borrower with a loan in return for
interest and a share of the appreciation in the property
when it is resold. Shared equity models typically only apply

PAGE 44 2015

>

reWEALTHmag.com

to properties that have

strong appreciation potential, such as so-called fixand-flip deals or new construction. However, when
this model applies, it can
increase the return potential
by adding an equity-based
component to the standard
interest-only model.
PRIVATE LENDING
FUNDS
While much of the private
lending activity is single or
multiple investors supporting a single borrower, there
is another model based on
an investment fund. In this
approach, a fund manager
organizes a collection of
investments from multiple
investors, and then uses
the pool of money in the
fund to make loans to
borrowers. Currently, there
are a variety of real estate
mortgage funds available,
with a range of investment
strategies including the
same ones described previously for individual investors. Investing in funds, or
mortgage pools, has both
advantages and disadvantages relative to individual
private lending. One advantage is that capital efficiency
is typically higher, since its
easier for a fund manager
to match their larger pool of
capital to particular

deals and thus keep the

funds more fully invested.
Another is diversification,
since funds from each
investor are distributed
across multiple loans.
Some investors may
find a disadvantage, in that
they like to review their own
loans and make their own
decisions about whether or
not to lend on a particular
deal. With fund investing,
those decisions are made
by the fund manager rather
than the individual. Of
course, for other investors,
having a professional manager evaluate the deal is
actually seen as an advantage.
Private lending can be a
great way to invest in real
estate without the hassle
of owning property, dealing
with maintenance issues, or
managing tenants. It focuses on the financial aspects
of real estate investing by
allowing individual investors
(by themselves or as part
of a fund) to essentially
become the bank and to
finance real estate transactions using the security of
the real estate as collateral.

Celebrate Our Financial

Supplement. Learn from
Top Leaders in Finance.

Upcoming Conferences in
Long Island, NY, La Jolla, CA,
and Las Vegas, NV.
Plus, Other Key Cities...

To learn more about private

lending, contact GCA Equity
Partners, LLC at 408-3691571, x101 or email: info@
GCAEquityPartners.com

Join us for our Private Money411

event, youll have the opportunity
to network, learn, plus connect
with top leaders in the industry.
Real Estate & Finance Professionals
Welcomed as Our Complimentary Guests.

INFO: 805.693.1497

REALTY411GUIDE.com/EXPO

Realty411Guide.com

PAGE 45 2015

reWEALTHmag.com

- TECHNOLOGY -

Applied Business
Software
Expanding

pplied Business
Software, makers
of The Mortgage
Office, recently announced the hiring of
Wyatt Gilbert, National Sales, to further
develop their growing
presence with The
Loan Office software
launched this past April
22, 2014.
The Loan Office software has been classified
as affordable, easy-touse software, specifically designed for the
small lender. Some of its
features include: QuickBooks integration, built-in
document scanning, loan
charges and advances
tracking, recurring and
event driven reminders,
unearned discounts,
email statements and
notices, incremental
funding, conversation
log, insurance and senior
liens tracking, unlimited
user-defined fields, Microsoft Office integration,
and much more.
The Loan Office
software has been quickly
gaining momentum since
its launch mid last year
with a record ending year
in sales and customer
satisfaction, typical of Applied Business Software
products.
Now, under the headRealty411Guide.com

PAGE 46 2015

ship of Wyatt Gilbert, TLO is

expected to beat a sales record in 2015. Wyatt comes
with a wealth of experience
in the IT world where he
began his career, before
moving into the auto commercial equipment industry.
He has a keen sense of
knowledge of The Loan
Office software and feels,
in his words fortunate to
have joined a group of talented developers and loan
servicing connoisseurs. Im
excited about the future of
The Loan Office software.
Having an unparalleled
product with exceptional
Tech Support to back it up,
undoubtedly separates ABS
from the competition; and
with the introduction of The
Loan Office, we can now
offer our solutions to what is
considered a smaller lender
and subsequently, a larger
audience.

reWEALTHmag.com

(And how a Land Trust can help us find it)

By Randy Hughes,
Mr. Land Trust

e all want it, we all

need it, and we all
look for it in every
aspect of our livessecurity. We seek security in our
relationships, in our personal lives and in our financial
lives. But why? What is it
about feeling secure that
makes this emotion the base
of all human needs?

than one property into any entity

(LLC, Corporation or Land Trust)
will create a nexus for a lawsuit. Most
(smart) real estate investors will title
each of their properties in the name of
a separate Land Trust and then make
the beneficiary of the Land Trusts
their LLC.
Imagine how secure you would feel
if you went to bed tonight knowing
that you did not own any real estate. There are NO benefits to owning
real estate in your own personal
nameonly risks. If you use a Land
Trust you will still receive all the
same tax benefits, etc. So, if you are
feeling insecure and doubtful about
owning investment real estate please
consider a Land Trust. To reduce the

As real estate investors we THINK

differently than the average citizen.
Not holding title to your real estate
in your personal name keeps you out of
the public records (your Trustees name
is in the public records instead). Ninety
percent of the information gathered
about you (and often used against you)
is mined through the public records in
your town. Always ask yourself before
signing any document, Is this going to
be recorded? And, if it is, try to find
another way to proceed.
Should you use an LLC to hold title
to your investment property? Absolutely
NOT! Yes, I use LLCs and they are
good asset protection devices (as long
as they are formed in the right state
which is not necessarily the state YOU
live in or your property is located in),
but LLCs are registered with the State
and are easily tracked. Putting more

Have you ever been out late at night

on the streets and found yourself in
fear for your life? Or, maybe you have
experienced the fear of foreclosure,
lawsuits, judgments, liens or financial
doom? Sure, we have all felt fear in
one form or another, but facing your
fears and taking action to reduce or
avoid fear is what a mature person
does. As a parent, I know it is my job
to protect my family from all threats
(personal or financial).
Security is the opposite of fear. Our
primal instincts teach us to fear the
unknown and protect what we have.
Because the loss of what we have (or
will have) makes us feel insecure.
Nobody likes to feel insecure.
As real estate investors we think
Realty411Guide.com

differently than the average citizen. We

take on more risk to ourselves and our
family for the possibility of a brighter
future. Risk and security are opposites.
Yet, as investors, we try to balance these
two concepts to yield maximum results
with minimum loss.
Finding security in your financial
life will help you find security in your
personal life (how many divorces result
from bankruptcy or money problems?).
Personal security and financial security
are intertwined.
So, what does finding security have
to do with using a Land Trust to hold
title to your investment property? A lot.
When you hold title to investment real
estate in a Land Trust you do not own
the real estateyou own the Trust.

PAGE 47 2015

risk of owning real estate and increase

your feelings of security, use a Land
Trust. You (and your family) will be
glad you did.
It is difficult to convey all of the
benefits of using a Land Trust in a
short article like this. I have been
using (and writing about) Land Trusts
for the last 37 years.
If you would like to learn more about
how to create your own Land Trusts,
for FREE training go to: www.
landtrustwebinar.com/411 or email
me at: randy@mrlandtrust.net for
my FREE booklet, 50 Reasons to
Use a Land Trust or contact me
the old fashioned way by calling
866-696-7347 (I actually answer
my own phone!) Randy Hughes, aka,
Mr. Land Trust

reWEALTHmag.com

land trust

Why do We Seek Security?

Commercial Probate Options, pg. 25

family homes. While there are many

investors that specialize in residential
real estate, there are also ways to profit
in commercial land and buildings.
Residential real estate has some
obvious advantages. There is more
demand for residential homes; and
therefore, it is easier to find properties
that may fit your investing profile.
Investing in a single home is also
more affordable as the price point for
a residential property is generally less
than the investment in a commercial
property. Luba Muzichenko writes,
Probate sales are as is sales, and...
the estate does not have to disclose
anything about the property. Does that
mean you have to make an offer on
the place blindly? Not a chance! You
have every right to fully inspect the
property. Bring a contractor, bring a
friend, bring an architect, bring your
mother! It doesnt make a difference
who you bring, just be sure to bring
them BEFORE you write your offer.
Also, one thing to keep in mind... with
your offer, you will have to submit a
cashiers check for 10% of your offer
price, payable to the estate.
There are cases where you can have
the property professionally inspected.
Everything depends on the laws of the
state that you are working in, the terms
of the probate and the desires of the
court. As you are learning the probate
business, take the time to find a mentor
who can help you to understand the
process of a probate sale. Part of that
process is the submission of earnest
money. This deposit is traditional in
any real estate transaction and applies
to both residential and commercial
real estate. The amounts in commercial real estate would obviously be
higher due to the increased purchase
price.
While some investors focus on
residential real estate, there are options
in commercial properties as well. In
fact, one of the most profitable areas
in probate is working with commercial
real estate. The researchers at Inc.,
said, Buying commercial real estate is
a complex undertaking that is difficult
Realty411Guide.com

even for experts to time right to maximize their investment value, let alone
entrepreneurs or business executives
whose areas of expertise are in different
industries. Its also a venture rife with
risk, as buyers, sellers, agents, and renters alike can suffer the consequences of
a dip or spike in demand. At the same
time, for a business, on the upside the
potential rewards can be substantial.
If you are interested in a substantial
reward, as the authors indicate, then
commercial might be for you.
What kind of commercial properties
might you find in a probate? If an individual owned a business or was a real
estate investor and held them personally,
then the properties may end up as part
of the estate that is being handled by
the court. These properties may include
everything from apartment buildings to
undeveloped land, strip centers, office
buildings, stores, restaurants, warehouses, industrial properties, doctors
offices and medical facilities to malls
and hotels. There is a wide variety of
buildings that are considered commercial property with an equally wide range
of pricing. Each of these properties has
advantages to the investor depending on
what your long term goal might be.
One of the best advantages in business property is the increased income
potential that is present in commercial
real estate. Matt Larson said, The best
reason to invest in commercial over residential rentals is the earning potential.
Commercial properties generally have
an annual return off the purchase price
between 6% and 12%, depending on the
area, which is a much higher range than
typically exists for single family home
properties (1% to 4% at best).
Knowing that there are both residential and commercial options in probate real estate investing is one thing.
Finding them is something completely
different.

professional services that are available

that can give you the information you
need in order to pursue properties in
probate. While you could go to the
courthouse yourself and look through
documents to try to identify which
leads are worth pursuing, you can save
yourself a lot of time and frustration
by having a lead service deliver that
information right to your email. These
services are both economical and helpful in that they provide information you
might not otherwise find on your own.
REAL ESTATE AGENTS. You
can work with a real estate agent in
order to find a residential or commercial property. Said Muzichenko, Most
probate sales end up listed in theMultiple Listing Service (MLS), but those
that dont are listed on the BlueSheet,
which can be found at theCalifornia
Superior Court in San Francisco. Of
course, if you are a buyer working
with a REALTOR that knows you
are interested in probate property, your
REALTOR will do the searching for
you.
CONTACT PROFESSIONALS
IN THE FIELD. As your business
develops, you may want to work with
local estate attorneys or accountants.
They would have firsthand knowledge
about properties that may become
available due to a change in family status. Building a relationship with them
and offering them a finders fee can be
a great way to add to your portfolio.
THE BEST WAYS TO
FOLLOW UP
Once you do find a property that you
are interested in pursuing, the next step
is to follow up. Generally, probate
investors have found that a professional
letter directed to the Executor is a good
way to start the conversation.
There are several critical components to your communications with an
Executor. A short introduction of who
you are and why you are contacting
them is a good way to start. Adding
information about what you do and
how you can help them may spark
some interest. Inserting a comment
about how you found their information,

HOW TO FIND OPTIONS

Probate real estate investors have discovered that there are key ways to find
out about residential and commercial
options. Here are a few of the ways:
USE A LEAD SERVICE. There are
PAGE 48 2015

reWEALTHmag.com

such as, Your property was listed as

part of a search I was doing through
public court documents, will help
them to understand that you are
simply contacting them to see if they
are interested in selling their home
or commercial property. Make sure
to add in all of your contact information, including your email, website
address and cell phone number so
that they can reply to your letter.
Understand that an Executor may
not contact you after one mailing.
Plan to follow up every thirty to
forty five days for a period of about
six months. These repeated mailings
to residential and commercial Executors will help establish you as a
serious investor and will be respectful of the many steps that these administrators have to take to close an
estate. When someone does reply to
a mailing, call them back right away.
Once they have made contact, they
are clearly ready to have a conversation, so promptness is key.
Finding the best options in residential and commercial probate real
estate is a blend of knowing what
you are looking for and reaching out
into the community. While residential real estate may have a lower sale
price, it may also not yield the same
rents and income that a commercial
property might. Take this into consideration when deciding about your
next property. v
For more personalized advice, call
the team at US Probate Leads. We
offer a professional lead service that
can get you the most up-to-date,
viable leads for the counties that
you work in and provide additional
support. We offer a wide range of
tools that includes communications
software, ebooks, webinars, seminars
and even an individualized mentoring program. When you are ready to
take your business to the next level,
call (877) 470-9751. We can give
you more information on how we
can help you build your probate real
estate business.
Realty411Guide.com

PAGE 49 2015

reWEALTHmag.com

A Lesson In

WhyESTATE
Dallas / Ft. Worth is One
REAL
of
the
Best
Metros
in
the
US
Syndications

by Tom Wilson

Are there markets that porate revenue

dont
recommend
being
a
have
weathered the down- Most affordable housing of top 20 cities
by Tom K Wilson
real estate investorunturn well, are superior in ($116,000 median Q3 2011)
less you have a well-demany of the parameters Central location in the United States atWHAT IS
A strategy,
REAL quantitative
ESTATE
fined
above, and have had rela- tracts companies desiring time zone and
SYNDICATION?
goals and are dedicated to go by
tively calmer waters dur- distribution competitive advantages
burden of acquisition, operations, and disposition. One gets
the numbers and not by unsuping these past few tumulus DFW airport is the third busiest in the
the expertise, management and borrowing power of a team of
eal estate
syndicatported advice
or emotions.
years?
world
proven
experts.
ing is crowdfunding
My engineering
training and
Indeed, my experience One of lowest cost of living major MSAs,
before
crowdfunding
30 years of
experience
managin more than 1800 unit yet above average household income
Tom Wilson
WHO
IS INVOLVED
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ing high tech
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over 35 years WITH
for real
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ever in
was a term. Basically,
Highest
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SYNDICATION?
Silicon Valley
me howand
to analyze
for has
that
Dallas / Fort
Worth is one United States
bothtaught
syndicating
crowdfunding
arerevealed
the
the best return
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investment
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of the for
best realThe
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that is
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2011
for single family
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called
promoter).
This individual
a common purpose or a common goal.
In United cator
Today,
principles
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it for
most of or
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long
Very landlord
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Anyone
can
do
it,
however,
one
term
holdings.
Yes,
economy crisis has
the real estate. They have a history ofthe
realnational
estate experience
property of any kind, including multifamily residential,
needs
to
be
very
disciplined
and
educated
The
strengths
of
Dallas
/
Ft.
Worth
are:
affected
even
DFW,
but
not significantly
and the ability to underwrite and perform the due diligence
on
or commercial such as retail, office, medical, industrial,
about
the
submarkets
and
products,
or
ride
Business
and
financial
capital
of
the
compared
to
other
MSAs.
Texas
the real estate. The other party is the investors. These are
theis the secwarehousing and more.
the coattails of someone who is.
South.
ondsyndicator
most populous
state,
so there are inindividuals who invest with the
and own
a percentIn its simplest traditional example, a chef wants
to have
The primary parameters for selecting the The highest rent
per
invested
dollar
for
a
deed
many
home
foreclosures,
age of the real estate as a result. They get all the benefits of especially
a restaurant and has the experience and willingness to put
best investment markets are:
major economic center in the United States, since there is such low housing costs and
property ownership, but they are not involved with acquiring
in the sweat equity but hasnt sufficient money. He then
Rent to purchase price ratio
and therefore, the highest cash flow
consequently a high percentage of governthe property, arranging financing (if there is a loan on the propfindsPopulation
a partner who
has
no
experience
or
desire
to
run
the
growth and inward migration
One of the lowest risk and safest harbors ment backed loans, but in spite of this, the
erty), doing the day-to-day management or disposition at the
business
but has the
money
and
desire climate
to reap theinbenifits
Employment
growth
and
business
the United States for real estate
Texas delinquency and foreclosure rate is
end of the hold period. Professional management is crucial to
of ownership.
A
formal
professional
syndication
reflects
the
Housing affordability
Lowest decline housing price from peak; relatively low compared to other states.
successful
commercialmetor multifamily
is usually
sameLocation
intent on a larger scale with more players. Itthe
indeed
only US single
digit depreciation
I believeownership
that these and
factors
are another
provided
by
the
syndication.
is generally
synergistic win/win
Cost ofaliving
ro
strong indicator of whether a metro has hit
relationship.
Rental market
Fourth largest and one of the fastest grow- bottom yet, and that many cities and states
IS THE
PROCESS
OF the lowest
Current and projected market conditions
ing MSAs (Metropolitan StatisticalWHAT
Area) have
farther
to go, so selecting
THREE
SYNDICATION double
Now that speculative investing for fast in the United States. Projected to A
risk metro is as important as seeking high
SYNDICATION?
profit
gone the way
of the last super- population to 12 million by 2030 There arecurrent
cash flow.
many moving
parts to a commerWHY
DOhasPEOPLE
INVEST
model,
the
wise
investor
is
focused
on
cash
Broad-based
economy
that
has
had
double
During
the
last
two decades
cial
or
multifamily
acquisition,
opera- the appreciIN REAL ESTATE
flowing assets and safe harbors.
the employment
rate growth of the tion,
United
ation
average
was
about
5% peroryear. With
1)
ORIGINATION:
planning,
and
disposition.
In
a
multifamily
SYNDICATIONS?
States during
the past decade
a 5 syndication
to 1 leveragethe
with
80%
loans investors
due
diligence,
acquiring
propcommercial
due
diligence
Most investors do not have the
No. 1 and
ranked
got a 25%
return
on
their down
payments
erty,
satisfying
registration
and
loan
process
steps
are
enough
to
choke
time, knowledge, or experience to
business
cliin
addition
to
the
high
cash
flow.
disclosure rules, and raising the
a horse. Hundreds of hours are generally Historisearch hundreds of properties to
mate
in
the cally, the last economies to slow down, are
capital for the investment.
invested
by the syndicator and his team to
find a gem to acquire and underUnited States
the first to go back up.
secure
the
product including the research
write. But there are real estate
No state inI dont know when DFW will start ap2)
OPERATION:
the
sponsor
and
projections
for the regional market
companies who do this for a living.
come tax
preciating significantly again, but I believe
usually
has
the
expertise
to
opeconomics,
the
specific
product business,
By getting involved through a good
L e a d i n g it will be before many other areas, and our
timally
manage
the
property.
the
demographics,
many
inspections,
andoptimally
real estate syndication, investors
MSA for cor- window of opportunity
to invest
bids
for
any
improvements.
Then
there
is than we
have access to larger and higher
porate head- in any leading area may be shorter
3)
LIQUIDATION
OR
DISPOSIthe
legal
process
and
finding
the
best
loan
quality investments than they could
quarter relo- think.
TION: resale of the property atcationssource
with the
extensive
and and terms
on their own and gain the ability
In thisalong
economy
I prefer
to invest in
the
end
of
the
hold
period.
application
and
qualification.
It
makes
expansions
homes over commercial and multifamily
to invest in real estate without the
Second lead- products because homes have more liquidRealty411Guide.com


PAGE 51 2015

reWEALTHmag.com
ing MSA in ity, are generally lower
risk, appreciate
US for For- faster, and one can build a mutual fund
tune 500 cor- by buying in various neighborhoods rather

COMPONENTS

>

Dictionary.com: Syndicate:
[n. sin-di-kit; v. sin-di-keyt]
A group of individuals or organizations
combined or making a joint effort to
undertake some specific duty or carry
out specific transactions or negotiations.
Recently to my surprise one of my radio listeners asked me if syndications
were legal. I said that the way I do
it and most syndicators as well, it indeed is. In fact, a high percentage of
large real estate investment ventures
are syndications.
The term syndication has no legal
significance. The responsibility, obligation and relationship of the syndicator
to the investment group and the investors to each
other are determined by the form of organization.
Anyone or any entity can syndicate a deal, and
yes, so can gangsters, which is apparently the basis
of my listeners concern. Yes, you do need to be
careful with whom you team and invest with.

a home loan look like a visa charge at the convenience

store.
And that is just the starting point. Once the property is
purchased, optimum professional property management,
both the strategic and the day-to day-operations, is critical
to maximum the returns for the investors. This can make
or break the projections.
When it is time to sell, the syndicator has
by Tom Wilson
Tom Wilson is a 37-year real estate dont
veteran
who
excellent knowledge of the market in that region
recommend being a
estate investorunhas executed over $100M and 2,000realunits
of real
for that type of product and can maximize the
less you have a well-deestate investments. Wilson is also a weekly
host quantitative
of the
sell price and terms. Having a syndicator who
fined strategy,
goals
and are dedicated
to am
go by
Real
Estate
360
Radio
program
on
KDOW
1220
can synergize all of these parts increases the
the numbers and not by unsupevery Wednesday at 2 pm. Listen toported
hisadvice
podcasts
or emotions. on
return/risk ratio.
My engineering training and

Why Dallas / Ft. W

of the Best Metros

iTunes or his website:

REAL ESTATE SYNDICATION

ORGANIZATIONAL FORMS

Selecting the form of organization involves practical as

well as legal and tax considerations. Each of the available entities has advantages and disadvantages. The LLC
and LP are the most commonly utilized entities used for
syndications today.

SYNDICATION BY THE NUMBERS

Real Estate syndication statistics in US
50,000 syndication investors per year
$2,300,000 average syndication
value
5-9% typical preferred returns
3-10% property management
operating fees
1-10 years range of ownership
Realty411Guide.com

Are there
have weathere
turn well, are
many of the
above, and ha
tively calmer
ing these past
years?
Indeed, m
http://tomwilsonproperties.com
30 years of experience managin more than
Tom Wilson
ing high tech profit centers in
transactions o
Silicon Valley taught me how to analyze for has revealed that Dallas / Fort
the best return on investment in any mar- of the best real estate investm
ket.
in the United States; that is
Today, the principles of analysis remain it for most of my personal p
the same. Anyone can do it, however, one term holdings.
needs to be very disciplined and educated The strengths of Dallas / Ft.
about the submarkets and products, or ride Business and financial ca
the coattails of someone who is.
South.
The primary parameters for selecting the The highest rent per invested
best investment markets are:
major economic center in the U
Rent to purchase price ratio
and therefore, the highest cash
Population growth and inward migration
One of the lowest risk and s
Employment growth and business climate
in the United States for real e
Housing affordability
Lowest decline housing pric
Location
the only US single digit depr
Cost of living
ro
Rental market
Fourth largest and one of the
Current and projected market conditions
ing MSAs (Metropolitan Sta
Now that speculative investing for fast in the United States. Project
profit has gone the way of the last super- population to 12 million by 20
model, the wise investor is focused on cash Broad-based economy that ha
flowing assets and safe harbors.
the employment rate growth o
States during the past decade

b
m
U

M
p
q
c
e

i
U
t

ADVANTAGES OF SYNDICATIONS
* Enables an investor to participate in
larger and higher quality investments.
* Utilizes the syndicators ability to find
the best products at the best value.
* Utilizes the syndicators ability to get the
best loans including non-recourse.
* Reduces the investors risk.
* Distributes the investment risk.
* Utilizes the syndicates ability and
experience to manage the acquisition
and product throughout the investment
hold period.
* Liability limited to the investors
contribution.
* Easier for an investor to get into a
non-local market. Las Vegas Worst

PAGE 52 2015

Realty411Guide.com

Dallas Best

reWEALTHmag.com

PAGE 28 2012

Why Having a CAT is More

Work than a Self-Directed IRA

o you know a proud

parent of a kitty? It
takes a special breed
of person (like me). So even
if youre not a cat person,
heres the fun youre missing out on...
Like it or not, my day
starts at 5:00 am on the
nose. Literally. Thats when
my 12-year-old shortgray-haired tabby,
Spotty, jumps
in my bed to
press his cold

Realty411Guide.com

nose against my face to ask for

breakfast. The whisker tickles seal
the deal.
All fed, he hops up to the
bathroom sink to ask me to
turn on the tap. Hes thirsty.
Then he gives me that look
when hes quenched: I want
my head rubbed NOW, please.
For some relief from all this, I
let Spotty out in the backyard. He
triumphantly trots back in 10 minutes later to bring me a dead bird
he found outside. Then I get the
job of cleaning up after him.
And thats just one morning.
Spottys capers continue round the
clock. Day after day. Week after
week. Month after month. Year
after year.
ARE YOU UP FOR IT?
NOT EVERYONE IS.
The good news is managing a
self-directed IRA (SDIRA) is less
work than caring for a cat. And less
expensive, if you do it right.

In fact, most of the time
the investment is upfront, in the first month.
Thats when we ask you
a lot of questions about
where your money
currently is (to help
you transfer it) and
the deal(s) you want
to invest in (to feel out
whether theyll pass
compliance).
Yes, the process can get a
little frustrating for that short
while. It ends up being only
a few hours in total though,
with us guiding you
through every step.
PAGE 53 2015

By Kaaren Hall,
uDirect IRA Services, LLC

SO ASK YOURSELF: How worthwhile is

investing a few hours now to tax-shelter your
real estate and non-Wall Street investments
for years to come?
At uDirect, we dont charge you a percentage of your assets like some of the other
guys. Its one low, flat fee per year.
Of course, you also need to always follow
the IRS rules to steer clear of prohibited
transactions once youre investing. You
could owe penalties on your whole IRA if
you break those rules.
To help prevent that, we can refer you
to some great tax lawyers, CPAs, and even
funding sources who understand SDIRAs
and who specialize in real estate. Ive
personally known these people for years and
worked with many of them on my own real
estate deals. None of them pay us a penny for
the referrals either.
So if a few rounds of info gathering and
monitoring your own investments dont scare
you, then you may have the right stuff to become a uDirect IRA Services account holder.
To apply for an account today, just call
us at (866) 447-6598 or email us at
info@uDirectIRA.com to schedule your
free 20-minute consultation. Your cat will
appreciate your wise planning.

reWEALTHmag.com

#LIVETHELIFE
When youre a top-producing real
estate pro, luxury has no limits. This
doesnt just apply to magnificent
estates, and skyscraping multistory penthouses; it means having an
equally rich ride too
Forget Uber and Lyft, who needs an
Apple, Google or Audi driverless car
when you can afford your own driver.
Or have an exhilarating, adrenaline
on-demand Mercedes Benz that you
want to be seen in.
Experience hyper-productivity in
your Maybach mobile office. Bringing a whole new meaning to mobile
closings, and driving for dollars, this
is the hyper-connected mobile office
that allows the legends of the industry to spot and close deals on the go.

Realty411Guide.com

PAGE 55 2015

reWEALTHmag.com

style

BY TIM HOUGHTEN

#LIVETHELIFE

According to the National Association of

REALTORS (NAR), the average agent spent
more on their vehicle than online marketing
and their website last year. And, why not?
The Maybach is a mobile marketing, money-making machine on wheels, one that will
ensure you are never mistaken for being
average again.
SLEEP, EAT & CELEBRATE
WITH CASH FLOW ON THE GO
Recently our media team met up with
Lexani Motorcars at the recent luxury car
show in Naples, FL. While the interiors of
these supreme vehicles offer cabins rivaling
billion dollar yachts, or resemble mobile
command centers, the exterior of the Sentinel VIP designed in coordination with the
International Armored Group ensures youll
never come up short, or have a worry when

#LIVETHELIFE

WHEELS TO WATCH
Aside from the new self-piloting Audi A7,
and Apple iCar, the new Mercedes Benz
G-Code sports utility coupe is sure to warp
drive real estate entrepreneurs into the
future. When available, the G-Code, which
generates both solar and wind energy, is
sure to rival Teslas latest designs for the
conscientious real estate power broker or
investment master.
What are you driving? v
Realty411Guide.com

PAGE 57 2015

#LIFETHELIFE

collecting rent. In addition to the custom

business stations, video conferencing, Maybach ceilings, and 25k gold custom accents,
the exterior of the Sentinel VIP presents a
formidable armored vehicle complete with
firing hatches and a turret. No zombie is
going to stop you from getting that cash
flow in this.

reWEALTHmag.com

balance

advertorial

INSIGHT FROM DR. GREG TEFFT

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And, that 66% of those on supplements are taking the
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It is a fact that over 98% of Americans miserably flunk
nutrition and toxin tests, which is worse than any other
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Which exact foods are the right ones for our individual
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Realty411Guide.com

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PAGE 58 2015

>

reWEALTHmag.com

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PAGE 59 2015

reWEALTHmag.com

Mark J. Podolsky (AKA The Land Geek) is widely

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PAGE 60 2015

REIWEALTHmag.com

reWEALTHmag.com

Lori Greymont, pg. 29

5 TIPS FROM LORI GREYMONT

the West Coast

It used to be location, location, and they know
need to
location, but I have found that they
drive west
there are really 5 keys to
but they dont
successful investing. They are: know what
highways to
use and they
1. Market Timing you need to understand where in the real estate cy- have no idea
how long its
cle your market is.
going to take.
2. Your Plan invest in what meets
We coach the
your goals, dont follow what everyclients that
one else is doing.
want to particLinda: Have you
ipate
actively
made any poor in3. Location this is important in rein
their
wealth
vestment decisions?
gards to picking a marketplace that
creation, but
If so, how would
has a strong economy and a neighborthe truth is that
you have done
hood that meets your investor goals. we find that
things differently?
4. Team this is probably the most
most people
Lori: Of course! I
important component with long-term want to simalways say a sign of
ply add the
an expert is someone holds, 90% of your success is based
creation in a
who has made a
on how well you select and manage
passive manmistake and stayed
your tenant.
ner building
in the game. The
5. Numbers its critical to know
for the future.
saying is, If you
what the real numbers are and to
You will
fall off the horse get
notice I didnt
back on. There is
make sure they meet your goals.
say anything
good value in that
about goals.
because you learned
What we do is much more strategic, much
something in that process. Why not apply
more profound. There is a beginning, a
what you learned?
The biggest mistake I made was buying middle, and an end. We come up with an
acquisition plan, a holding period, and
a 40-acre parcel of land with the expectamost importantly, an exit strategy. For
tion of appreciation. The reason it was a
each investor we create a customized stratmistake is because land doesnt generate
egy unique to their objectives. This plan
income. We had a seller carry the mortworks for investors who want to replace
gage, so we had expenses, no income and
their income now actively participating
decreasing value. Needless to say, we
in real estate or those who want to build a
forfeited it back to the owners, causing
future plan for themselves or their legacy.
myself and others to lose our down payWe create the right strategy, find the
ment money.
right properties in the right markets in the
The lesson to learn in this is real estate
right neighborhoods to execute their perdoesnt always go up and you should buy
sonalized strategy. We even find property
on the fundamentals of cash flow. Anymanagers and in most cases put tenants in
thing else is gambling.
place. This allows our clients to execute
their plan with little impact on other asLinda: Why is your company different?
pects of their busy lives.
Lori: What really makes us different at
While we believe in having a local
Summit is our ability to work hand-inteam support your investments, we also
hand with real estate investors to identify
a concrete strategy and plan to reach their believe that the holding period is where
your success is created. For this reason
investment objectives with dependable
passive income. We find that most want to we use our clout to intervene if any issues
come up after a property is owned and
retire, put their kids through college, get
rented.
freedom from their day job, or maximize
Bottom line, our clients trust us betheir performing assets, but they dont
cause of our experience and our excellent
have a road map on how to do it. Its like
track record of delivering high returns
they want to go from the East Coast to
fearful of the economy, we were investing in homes, repairing them, hiring
people, buying supplies, selling them
to investors and
improving neighborhoods, impacting
communities in a
positive way.

Realty411Guide.com

PAGE 62 2015

and being there for them from start to

finish. We help them identify a strategy
and execute it whether it is to participate
actively in their investing or a done for
you turn-key solution.
Linda: What are your plans for 2015?
Lori: My passion this year is to help
investors achieve the success they deserve. While I was caring for my mom,
I took the time to write a book, Live
Like A King, Think Like A Farmer 10
Simple Steps to Make Millions in Real
Estate. The purpose of this book is to
help get the message out to everyone
that making money in real estate is simple and achievable. You can create the
lifestyle you want by following the sow
and harvest principles of a farmer. This
is an instructional hands-on book that
will walk someone through the steps of
creating wealth in real estate. It is easily
digestible for the new investor while
containing plenty of sage wisdom for the
experienced investor. Make sure to visit
www.livelikeakingbook.com to register
for more information about obtaining
your copy of this book.
Along with this book, we will continue to educate with our radio show,
Real Estate Radio Live on AM 1220, the
Wall Street Business Network. Our team
member, Charlie Castro will host the
show. He takes his time to finding relevant market experts and topics to discuss.
Definitely worth your time! This plays
live on Thursdays from 3 to 4 pm PST or
it can be heard in replay on our website.
We are actively monitoring and opening new markets that meet our criteria for
solid cash flow investments for our investors. Additionally, as the single family
housing market recovery matures we are
seeing more opportunities in commercial, syndication and development that
benefit our investors. For us, its about
supporting investors who want to get
solid passive cash flow from real estate
investments.
Lastly, as a passion project I have
created an all-womens mastermind
group called The Impact Circle, for
investors and business owners that are
ready to positively impact their futures.
This group brings women business owners together to catapult each other to
success with power, passion and purpose.
For more information about this group
visit online: www.theimpactcircle.com

reWEALTHmag.com

SOLAR - How REALTORS and

Investors Use it to Their Advantage

ately, I am sure you have heard the word solar

mentioned often. With the rising costs of electricity
(raised at least once per year), it isnt a surprise
that more and more interests in the solar industry
are trending on Twitter and Google search feeds. This past
summer homeowners with non-solar homes reported their
outrage and concern due to their electricity bills pouring into
the $200-$600 range. And its only going up.
Energy efficient and alternative energy homes are now
being manufactured by developers looking to get ahead of
the curve on the ever-booming industry. Why buy the house
that doesnt have solar on it when I can buy one that comes
with it, installed and ready to use when I move into my new
home? When presented with the option of solar or no solar
this was the most common surveyed response for home
buyers in 2014. And its true. If a home-buyer does not buy
a home with solar on it, the odds of them getting it installed
after the fact, are especially high in inland areas and areas
where there are larger cooling and heating consumptions.
This essentially presents a great opportunity for REALTORS and investors. Investors are quickly realizing the

capital gain from their solar investments. With a very small

percentage of homes (under 5% nationwide) having solar,

there are still government incentives in place to incentivize
property owners to help alleviate the dependency on fossil

fuel by incorporating renewable energy.

Continued on pg. 66

REI WEALTH MONTHLY

For nearly two years, REI Wealth Monthly has
been delivering vital industry news. REI Wealth
Monthly, which is co-owned by Realty411, is the
ONLY monthly publication catering to investors!

www.REIWEALTHmag.com
Realty411Guide.com

PAGE 64 2015

reWEALTHmag.com

Wanna be a big boy?

Now is the time to put your big boy (or big girl) shoes on and
grow your business model up.
Do you, like many brokers, spend most of your time looking for a lending source? Are you chasing bad
deals because you dont know theyre bad?
Don't settle for being good at what you do, be the best by attending Pitbulls next National Hard Money
Conference, June 12th in Fort Lauderdale. Presentations by seasoned lenders, brokers and service providers 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 entire
house. Deals happen.
Network with investors, lenders, and vendors. Discover the advantages of becoming the bank, which
allows you to dictate points and spreads yourself. Sound daunting? Its not. Sound liberating? It is.
So, be a big boy or girl and grow your business model up. See you in Florida!

Pitbulls
Now
is the37th
timeNational
to put your big boy (or big girl) shoes on and grow
Hard
Money
Conference
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June 12, 2015 Harbor Beach Marriott Resort & Spa Fort Lauderdale, FL

www.pitbullconference.com

858-736-7788

Solar Advantage, pg. 64

These incentives are offered on

the state and federal level, with many
states maxed out already on the state
rebates. This has helped to increase
solar installations by 40% in the last
couple years and with the 30% federal
credit dissolving in 2016, its no wonder there is a sense of urgency.
INVESTORS HAVE
MULTIPLE OPTIONS:
1. BUY AND HOLD #1: Buy the
property, purchase (not lease) their
solar system for the home. Collect
30% federal credit and move in and
enjoy the benefits of their solar system
saving them money right away.
2. BUY AND HOLD #2: Buy the
property, purchase (not lease) their solar system for the home. Collect 30%
federal credit and rent out the property.
They are the utility provider now,
essentially, and can charge their tenant
the amount they choose, for the use of
the electricity or raise the asking price
for the rent to include electricity.
3. BUY AND FLIP: Buy the prop-

erty, flip, and include a solar pv system

(purchased not leased) in the renovations.
Collect 30% tax credit as the original
purchaser of the solar system. List the
property for sale and raise the asking price
of the home based on the value of the
solar system.

would need to be displayed on the front,

side or back of the house. And now due to
lenders wanting to make sure they have
their foot in the door specific lenders
will allow the homeowner to include
solar in the original purchase of their new
home.

INCREASED PROFITS.
REALTORS are starting to realize that
the use of solar in their marketing efforts
is becoming a useful tool in garnering the
attention of potential buyers. Its possible that most of their homes they have
listed do not include solar. But there are
REALTORS staying ahead of the game
and instead marketing the option of solar
based on how optimal each individual
listing is and using this information for
their open houses.

ONE PAYMENT FOR

EVERYTHING.
Secondly, if their seller does not want
to pay to have solar installed, they can
market the solar option for that particular
home, increasing their buying pool. The
right solar installer can get you a quick
install before the new homeowner even
unpacks their boxes.
Third, many REALTORS have stated
that by advising their past clients that they
now have a connection in the solar industry, they have found it to be a great excuse
to reconnect again and have even received
several referrals from past clients. The
REALTORis now connected in more
than one industry, proving to be a greater
asset for buyers and sellers alike.
In 2015 if you are a REALTOR or
investor, solar could be your new best
friend. v

WHAT DO THEY STAND

TO GAIN?
First off, they have an added tool they use
for their sellers and their buyers. Their
buyer is likely to get solar at some point
for their new home. Now they can find out
if the roof space is sufficient, if there is
high sun exposure and orientation of the
house will determine whether the solar

Weve
been looking
for a way
to refinance
our rental
properties.
B2R was the
answer.

Brian Evans
Investor
Plano, TX

Residential real estate investors arent used to having

easy options for financing, re-financing and unlocking
equity from their rental properties. Until now.

B2R walked us through the process

and made sure we were
comfortable every step of the way.
- Brian Evans

At B2R Finance, residential rental mortgages are all

we do. That means were committed to finding faster,
easier and smarter options for you. For example,
we provide blanket loans allowing you to eliminate
multiple mortgages and package several properties
into a single loan. We also make asset-based loans that
consider the cash flow of your rental property rather
than your personal debt-to-income ratio.
In short, we provide innovative solutions that are tailormade for real estate investors.

855.710.0227

Nationwide Financing
Up to 75% LTV
Recourse & Non-Recourse
Aquisition Line Available
Up to 30-Year Amoritization
........................
PROPERTY TYPES
Single-Family Residences
2-4 Family Units Condos
Townhomes Apartments
Mixed-Use

B2Rfinance.com

B2R Finance L.P., NMLS ID # 1133465, 1901 Roxborough Road, Suite 110, Charlotte, NC 28211. B2R Finance L.P. is not a residential mortgage lender. B2R Finance L.P. only
makes loans with a commercial purpose and is not currently authorized to make such loans in all jurisdictions. Your specific facts and circumstances will determine whether
B2R Finance L.P. has the authority to approve loans in your specific jurisdiction. B2R Finance L.P. operates out of several locations, but not all locations conduct business in all
jurisdictions. Arizona Mortgage Banker License BK#0926974. Minnesota: This is not an offer to enter into an agreement. Any such offer may only be made in accordance with the
requirements of Minn. Stat. 47.206(3), (4). Oregon Mortgage Lender #ML-5283.

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