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Table of ContentsSelect a Title Below to View the Article

12 Cover Story

Texas Real Estate InvestorsUnite in San Antonio

By Victor Maas

“you can make more in real estate than practicing law."

­ Victor

Understanding 21the Mindset of the Investor

By Leonard Rosen

52 Becoming Your Own Bankerwith The Infinite Banking Concept™By James Neathery

BEST KEPT SECRETS 16To Get More Motivated Sellers Contacting You

By Kathy Kennebrook

The Flip Side 42 Of Private LendingBy Sensei Gilliland

7 Personal Finance Questions 36to Ask Yourself Before Getting a Mortgage

By Dr. Teresa R. Martin

Making the Decision 30To Control Your Money (Chapter 1 Part 2)

By Rebecca Rice

Tips For Success 25By Michael Poggi

56 Many US CommunitiesSeeing Real Estate Inventory and Lead ShortageBy Leon McKenzie

63 Solo 401kA Tax Saving Strategy for Real Estate InvestorsBy Jean NortonDmitriy Fomichenko

69 Here's the Capital You NeedBy Dana Bersch

74 Experts to Discuss California’ sReal Estate Bubble and Digital Disruption at Charity Event Organized by The Norris GroupBy Aaron Norris

79 Skyrocketing Inflation, Rents, and Home PricesBy Rick Tobin

Letter 10From the Publisher

By Linda Pliagas

47 Mortgage Free Real EstateBy Matthew Pillmore

LINDA PLIAGAS

ello Friends of REI WEALTH;

Thanks for joining us for another informative issue. For nearly three years, REI WEALTH has provided investors

around the world with timely, thought­provoking articles; stories written from top investors from around the nation.

Our environmentally­friendly resource guide is designed to inspire hopeful investors, as well as teach even the most

sophisticated landlords a lesson or two.

My partner, Noland Araracap, a real estate investor based in San Diego, had a vision to reach investors around the

world. It is an honor and pleasure to continue his initial dream and inspiration.

I often meet our readers in person when we host events in different cities, and it's amazing to get to know our fans

firsthand.

H

Linda Pliagas

Linda Pliagas has studied and worked in both media and real estate for nearly twenty years.

Linda holds a bachelor’s degree in print journalism from California State University, Long

Beach. She was a recipient of the Bobit Magazine Scholarship for her accomplishment in

publishing her first national magazine while still at CSULB in 1993. Her first national

publication, distributed into bookstores across the country, gave her a national spotlight and

forum at the age of 25. She was featured in the Los Angeles Times, Wall Street Journal,

Santa Monica News, among others.

She began her realty career 17 years ago as a broker’s assistant to a young broker who

became a multimillionaire by age 29 fixing and flipping homes. When they worked together, he was a seminar devotee

and took educational training around the nation with some of the greatest masters in the industry, many who are now

featured in this publication! She kept a close ear to his teachings, obtained her real estate license, and began to focus

more on the investing side of the real estate industry. Soon, Linda began to help her family, friends and colleagues also

invest in rental properties, particularly out of state. Linda has been a licensed real estate agent for over 16 years. A

journalist since the age of 18, Linda Pliagas has also worked and freelanced for numerous national magazines, local

newspapers and online news websites.

LINDA PLIAGAS

The friendships that have blossomed out of

this business have been really incredible. I'm

certainly much richer because of REI

WEALTH ­­ thanks to all the people I've met

along the way.

Our team, scattered around the world ­­ in

California, Florida, Nevada, Missouri, and

the Philippines wish you all the best with

your investment endeavors.

Until next time,

Linda Pliagas

co­publisher

Texas Real Estate Investors

Unite in San Antonio

By Victor Maas

TEXAS REAL ESTATE INVESTORS UNITE IN SAN ANTONIO VICTOR MAAS

hether you are still sitting on the sidelines looking for a way onto the real estate investment

playing field, or you’ve been doing deals for years; you already know that there can be a fair

amount of challenges. Maybe that is finding the money to get started. Or it could be finding a creative W

You might be in real estate for yourself, but you don’t have to invest by yourself

way to structure a tricky deal with big profit potential, getting help in ensuring a buyer or seller lives up to their

agreement, or simply finding a smarter way to scale lead generation and deal flow. Regardless of how high your

IQ is, or how hard you are willing to work at it, all of these hurdles are far more easily overcome with the help of

others who have the contacts or experience, and have been there before.

Texas real estate investors have been uniting

together for their success thanks to SAREIA.

President of the San Antonio Real Estate

Investors Association, Victor Maas, is a self­

described “problem solver.” Since 2002,

SAREIA has been leading the biggest REIA in

South Texas, helping members realize more of

their goals and connecting them together to

exponentially accelerate their results.

Victor Maas knows all too well about the

challenges of working your way up to make

your dreams happen, and overcoming the challenges of entering a new market, profession, or business. Victor

is a self­made success who essentially found himself in the U.S. on his own to make his own American Dream

happen for himself. He appears to have done pretty well at that. Today he is a lawyer, real estate broker,

investor, coach, and SAREIA president.

Victor clearly does have to juggle some of these roles. It is a choice. He doesn’t want others to have to go at it

alone, and of course together there are plenty of rewards in going bigger in the property industry. In fact, Victor

Maas is one of a growing number of attorneys who have been making the leap, or at least have been adding

real estate investment, as “you can make more in real estate than practicing law.”

It certainly pays to have a coach, mentor, and

association president who has both this breadth

and depth of expertise. Through SAREIA,

members will find advanced help with real estate

contracts, law, dealing with probate situations,

finding sellers, title issues, and business

formation. Victor speaks Spanish too, which is

virtually a must when doing business in Texas,

and could be a great value added bonus for

those who aren’t bilingual.

TEXAS REAL ESTATE INVESTORS UNITE IN SAN ANTONIO VICTOR MAAS

SAREIA offers a variety of opportunities, which include the benefit of Victor’s experience and connecting with

other Texas real estate investors. This is anchored by monthly meetings on the first Tuesday of the month in

San Antonio. Then there are Boot Camps and Bus Tours, a mentorship program, lunch and learn events to

advance your real estate marketing and creative financing skills, plus SAFIRE. SAFIRE is the San Antonio

Female Investors in Real Estate group.

The big difference you’ll notice at SAREIA from other real estate education, training, and coaching options is

the action. Even at monthly meetups you’ll get time to ask questions and get them answered, and do some real

networking versus sitting and just listen to a lecture or sales pitch. Other events get investors out in the field for

hands on property scouting and deal making.

Looking forward, Victor says there are plenty of real estate deals to be done whether you are pre­habbing,

wholesaling, putting together JVs, or are seeking income properties.

Find out more about the Texas real estate landscape, SAREIA, and Texas real estate forms right online at

www.SAREIA.com.

TEXAS REAL ESTATE INVESTORS UNITE IN SAN ANTONIO VICTOR MAAS

http://realty411expo.com/

BEST KEPT SECRETS TO GET MORE MOTIVATED

SELLERS CONTACTING YOU

By Kathy Kennebrook (The Marketing Magic Lady)

BEST KEPT SECRETS TO GET MORE MOTIVATED SELLERS CONTACTING YOU KATHY KENNEBROOK

etting motivated sellers to contact you first is essential to any successful Real Estate Investor’s

business. A truly motivated seller is the key to a good deal; the more motivated the seller, the better

the deal. You will find very quickly, as I did, that you will be able to buy a lot more houses at much

better prices if you target the right sellers. You will also get the terms you want when the seller contacts you first,

especially in some of today’s really hot real estate markets. You’ll want to target the kind of sellers who truly need

to sell as opposed to those who just want to sell, including those sellers in pre­foreclosure.

G

Marketing to sellers is also a numbers’ game. The

more motivated sellers you are able to locate, the

more motivated sellers you will have contacting you,

and the more opportunities you’ll have to make good

deals. The secret is in learning how to find the truly

motivated sellers.

Whom exactly are you going to be marketing to?

Motivation comes in many forms. Sellers need to sell

for a variety of reasons. Some reasons have to do

with the sellers themselves, such as age, health

status, job situations, personal situations, financial

difficulties, change in family size or change in marital

status.

Other reasons might have to do with the property

itself, such as an estate, a property that needs too

much work, or a property that has been vacant for a

significant period of time. This would also include

land lords who have simply had enough of tenants

damaging their properties over and over again.

So how do you find these sellers and how should

you market to them? The best way I’ve found to do

this is by using at least three to five different

marketing strategies at all times. One of the multi­

pronged marketing approaches is the proper use of

direct mail to reach these very motivated sellers. You

always want to be reaching your market in a variety

of different ways to draw the highest number of

motivated sellers to you.

The BIG secret to effective direct mail campaigns is to use

them over and over to the same potential sellers. As you

will quickly discover, given time, almost every potential

sellers’ circumstances change and make them more ready

to sell.

I also find that these mailings are very residual. These

potential sellers will hold onto your direct mail pieces

until their circumstances dictate that they contact you,

especially since they probably have not had any

contact from anyone else, because usually their

properties are not being actively marketed.

Since they are not being actively marketed, there is

virtually no competition for these deals. And… if you

take the time to actively follow up with your direct mail

campaigns and with your sellers, these sellers will

contact you first when they need to sell, even if they

have been contacted by someone else in the

meantime.

This makes it even easier for you to make a good

deal. In addition, during the time you have been

mailing sequentially to these potential sellers, you

continue to build credibility with them. This will give

you a significant advantage over your competition,

since these sellers feel they already have a

“relationship” with you.

The biggest part of the secret is to find the sellers

who really want to sell. I use different direct mail

campaigns to successfully locate several types of

BEST KEPT SECRETS TO GET MORE MOTIVATED SELLERS CONTACTING YOU KATHY KENNEBROOK

motivated sellers depending on what kind of deals I am specifically looking for in my business. The best way for you

to build your business quickly is to use a number of different methods to draw motivated sellers simultaneously.

This can best be done by locating mailing lists and refining them to meet your specific criteria, and then mail to

them over and over, cleaning your lists as you go. I find that I get the best results by mailing to my lists at least

every sixty to ninety days. This is very easy to do if you implement a follow up system which will help you to

track your mailings and your deals.

You’ll also quickly discover that different types of direct mail pieces and lists work better in some parts of the

country than in others. Some of these lists might include mailings to out of state property owners, burned out

land lords, quit claim deeds, military transfers, estates or pre­foreclosures. These are all sources of highly

motivated sellers.

Be sure to give your potential sellers several different ways to contact you such as mail, e­mail, fax, phone and

a website. The more ways you give these sellers to contact you, the more of them will contact you, especially

when you make it more convenient for them by giving them several ways to reach you. This way they can

contact you in the way that is the most comfortable for them and at their convenience.

When you learn how to get motivated sellers contacting you and then learn how to purchase properties using a

number of different methods, the possibilities become almost endless. If you use several different methods to

get motivated sellers contacting you, you will have more opportunities than you can even imagine. You get to

pick and choose the deals that you want to do! Because you get to pick and choose the deals you want to do,

you can also pick the exit strategy that most suits your needs, such as wholesaling, renting, selling or

lease/options. There is no other marketing strategy that gives you this much control over your deals.

In addition, in today’s market, since so

many folks are focused on pre­

foreclosures, there is a whole other

market of sellers who need our help as

well, like divorces, estates and probate,

military transfers, burned out landlords

and Spanish Speaking homeowners.

These are just a few of the types of sellers

we need to be concentrating on to create

great deals, including those that come

with owner financing.

BEST KEPT SECRETS TO GET MORE MOTIVATED SELLERS CONTACTING YOU KATHY KENNEBROOK

Using direct mail campaigns to market to motivated sellers and developing a “cookie cutter” system to

accomplish this is one of most affordable, reliable, and effective ways that I know to build your business quickly

and have more qualified motivated sellers contacting you than you will be able to handle.

For more information on Kathy Kennebrook’s marketing tools to find all the motivated sellers and lenders you

need for your real estate investing business go to Kathy’s website at www.marketingmagiclady.com. While you

are there be sure and sign up for her monthly newsletter and receive $149.00 of real estate tools absolutely

FREE!!

Kathy Kennebrook

Kathy holds a degree in accounting and has co­authored the books­ The Venus

Approach to Real Estate Investing, Walking With the Wise Real Estate Investor, and

Walking With the Wise Entrepreneur which also includes real estate experts Donald

Trump, Suze Orman, Robert Kiyosaki, and Dr. Wayne Dyer. She is the nation’s leading

expert at finding highly qualified, motivated sellers, buyers and lenders using many types

of direct mail marketing. She is known throughout the United States and Canada as the Marketing Magic Lady. She has

put together a simple step­by­step system that anyone can follow to duplicate her success.

Kathy has been speaking throughout the country and across Canada for over 14 years and has shared the stage with

Ron LeGrand, Donald Trump, Dr. Phil., Dan Kennedy, Mark Victor Hansen, Ted Thomas and Suze Orman to name a

few.

Dagger LLC 941­792­5390

P.O. Box 14343 941­795­6887 (fax)

Bradenton Fl 34280 kpaddler@att.net

BEST KEPT SECRETS TO GET MORE MOTIVATED SELLERS CONTACTING YOU KATHY KENNEBROOK

http://info.pensco.com/realty411

By Leonard Rosen

UNDERSTANDING THE MIND SET OF THE INVESTOR LEONARD ROSEN

n my 35 years of being involved in the real estate marketplace, I have come to the conclusion that not

many promoters of real estate syndication understand the mind set of of the investor.I

Understanding the Mind set

of the Investor

In order to begin the process of raising

capital, the promoter needs to

understand the risk tolerance and

appetite of the investor. Every investor

needs to feel comfortable with the

asset class, geographical area and

dividend yield associated with the

investment. Real estate investors have

different comfort levels, consequently,

the investment must fit into their

strategy.

Also, investors come in all shapes and

sizes, some investors will deploy

capital utilizing their self directed IRA,

while others deploy capital outside of

their retirement accounts.

Obviously, these are easy

questions to be answered with

a quick due diligence check

list. I ask real estate

syndicators all the time, what

is your investors most

dominate question prior to

deploying capital? I receive

answers such as dividend

yield is the predominate

concern. After further

discussion, we realize that the

dividend yield is used as an

excuse for not feeling

comfortable with the investment proposal.

Investors participate in business deals with people

that they like and trust. If the trust factor is not

addressed, the likelihood of an investor participating

in your deal will be low. Addressing the emotional

needs of someone who is asked to give you money is

a complex issue.

I believe you should follow my simple 4 step rule.

Rule number 1. Never ask your investor for capital

on a first meeting, simply share some concept and

ideas and gauge their interest. This is a time to fact

find and begin your relationship. The ultimate goal is

to begin a dialogue in the purpose of creating a trust

factor.

Rule number 2. Exchange contact information and

reach out to your possible investor by email or phone

and thank them for the time they spent with you.

Rule number 3. Schedule a time for coffee to explain

in detail your investment strategy to determine if the

investment strategy fits into the investors comfort

level. You can speak about risk factors, dividend

yields and security interests.

Rule number 4. Be patient, move the relationship

along at the speed the investors feels comfortable

with. This is the time to gauge their interest for their

participation.

Always remember, Have testimonial letters available,

website address and a detailed executive summary

of the proposal.

Good luck!

UNDERSTANDING THE MIND SET OF THE INVESTOR LEONARD ROSEN

Leonard Rosen

CEO, Pitbull Conference

“The Most Interesting Man in Hard Money”

Leonard Rosen’s career has spanned over 30 years in the financial services market as it

relates to real estate. In the 80’s, Mr. Rosen was the nightly news anchor for the

Financial News Network. After the network was sold to CNBC, Mr. Rosen hosted the

nationally syndicated television program “The Leonard Rosen Show”.

Today, Mr. Rosen hosts “Financial News with Leonard Rosen”, which focuses on the real estate markets with an emphasis

on the private lending sector. Mr. Rosen’s market commentary has been featured in The Wall Street Journal, Fox News, and

MSNBC.

As the CEO of Pitbull Conference, he is regarded as “The Most Interesting Man in Hard Money”.

Mr. Rosen believes you sell the problem you solve not the product. His visionary approach has earned him praise from the

real estate and lending community nationwide.

Mr. Rosen provides private consulting to major banks, hedge funds, mortgage companies and private lenders.

“Business is based on two essential components, power and leverage. The most common way people give up power is by

thinking they don’t have any.”

UNDERSTANDING THE MIND SET OF THE INVESTOR LEONARD ROSEN

mailto:jennynocco888@gmail.com

he Millionaires Real Estate Investment Group is a private investment group made up of 10,000

members and 2500 active investors. The focus of the Millionaires Real Estate Investment group is to

invest in several areas of Real Estate and Businesses ranging from purchasing apartment buildings,

building new construction homes, purchasing vacant land in fast growing areas as well as investing in

businesses.

T

TIPS FOR SUCCESS MICHAEL POGGI

TIPS FOR SUCCESS

By MICHAEL POGGI

I have had decades of experience in Real Estate

Investing. Throughout the years, I have had several

ups and downs. I will share with you some of the tips

that have allowed me to be successful in Real Estate

and Businesses. I would like to save you from some

of the mistakes that I have made and thus allow you

to succeed early on in your career.priorI have had

decades of experience in Real Estate Investing.

Throughout the years, I have had several ups and

downs. I will share with you some of the tips that have

allowed me to be successful in Real Estate and

Businesses. I would like to save you from some of the

mistakes that I have made and thus allow you to

succeed early on in your career.

Take control over your Mind and Your Attitude ­

We all know that there are many things in life that you

cannot control, but you can control your mind and

your attitude. External forces have very little to do with

success. Those who program themselves for success

find a way to succeed even in the most difficult of

circumstances.

Live life to the Fullest ­ Living life to the fullest is a

lot like shooting the rapids in a rubber raft. Once you

have made the commitment it’s difficult to change

make it all worthwhile. If you never make the attempt,

you may never know the depths of despair, but

neither will you experience the exhilaration of

success.

I strive to live my life personally and professionally to

the fullest. I do not allow mistakes or challenges to

stop progress, when a challenge arises; I determine a

solution and move forward. Do not let challenges

stand in the way of your progress in beginning Real

Estate or continuing in Real Estate, if you do you will

be cutting yourself off from the huge success that you

could achieve.

Leverage Your Money to Get Deals Done­ Do not

wait until you have all of the money for a deal in order

to make that deal happen. There are so many ways to

structure a deal. You can partner with someone else

that has the money, and you do all of the work, Or you

can put in half of the money and the partner puts in

half of the money, or you can put down a down

payment and let the seller hold the note etc.. Do not

let lack of money stop you from getting deals

done.

TIPS FOR SUCCESS MICHAEL POGGI

Don’t be Afraid to Change Directions When Necessary ­It is imperative that we are not afraid to change

directions when conditions change. I have been a Real Estate Investor for many years, and have seen the ups and

downs of the market. I have always watched the market conditions to determine what strategies make sense.

It is not wise to hold on to a strategy when the numbers and the market conditions no longer align. Sometimes it is

tempting to jump into a real estate investing strategy that

no longer yields great returns due to the market when in

reality the time for that strategy has already passed. For

example, at the top of the market is not the best time to

purchase rental properties.

There are strategies that fit every type of market. Our

team researches and determines the best strategies to

invest in and changes directions when market conditions

deem necessary.

Grow Your Wealth Tax Free By Investing in Real Estate using a Self­Directed IRA­ One strategy that has

allowed me to gain tremendous wealth has been investing in Real Estate using a Self ­Directed IRA.

An IRA, An Individual Retirement Account is a personal savings plan that allows you to set aside funds for your

retirement. Investments made within these plans grow in either a tax­deferred or tax­free environment.

A tax­deferred account is one that is funded with pre­tax dollars which means in most cases that you get a

deduction for your contributions. When distributions are taken from the account those funds are taxed. Traditional,

SEP, and SIMPLE plans are referred to as tax­deferred accounts.

By contrast a tax­free account is one that is funded with after tax dollars, which means that you do not receive a

deduction for contributions. When distributions are taken, there are no taxes incurred in a tax­free account. The

Roth IRA and the Coverdell Education Plan are referred to as tax­free accounts.

The Self­directed IRA is a well­kept secret. You might not be aware

that it is possible to invest in non­traditional investments such as

real estate, mortgages, tax liens, mobile homes and other

investments in an IRA. A truly self­directed IRA will enable you to

use your investment knowledge and expertise to prepare for your

retirement. A self­directed IRA allows one to make their own

investment decisions from a wide range of acceptable investments.

TIPS FOR SUCCESS MICHAEL POGGI

Michael Poggi

Michael Poggi is a nationally recognized public speaker, established author, and professional

investor, with nearly two decades of experience. Michael speaks on advanced wealth strategies and

how to invest in Real Estate and Businesses the right way .He presents topics such as: house

flipping, purchasing apartment buildings, and building new construction homes, development

projects, purchasing vacant lots in fast growing areas and buying businesses in your IRA or your old

401K plan. He teaches people how to make their IRA self­directed in the true sense, so you can use

it for real estate. He also teaches people and mentors students on how to make their IRA cash flow monthly tax­free as

well as how to invest properly.

In addition, Michael is the president and founder of The Millionaires Investment Group, based in Ft. Lauderdale, Florida.

There are 10,000 members of the Millionaires Investment Group and 2500 Active Investors. The Millionaires Investment

Group holds a meeting on a monthly basis to network and partner on real estate ventures, and businesses. Michael’s

company specializes in many aspects of commercial real estate, vacant land, development projects, new construction

home projects and businesses. The group attracts top notch speakers from all around the country, who are featured

monthly to provide additional education.

Michael is often a featured guest on the Money Talk radio show. His company, Build Wealth with Land, LLC, is

one of the largest land providers in the U.S., providing hundreds of vacant lots to investors and builders yearly.

Michael has bought and sold over 1000 vacant lots and houses in the last 10 years, tax free.

I was able to grow my wealth from $500.00 to $1,200,000 by investing in Real Estate using a Self­Directed

IRA. Imagine the difference this strategy will make in your life by allowing you to grow your wealth tax­free. You can

learn additional strategies that have allowed me to be a successful Real Estate Investor in my book “Build Wealth

Tax Free Profit Formula” that is featured on Amazon.

I have taught and mentored thousands of students over the years at my educational seminars and webinars. Please

email our office to be added to our database to receive invitations to these events. We often partner on real estate

and business projects when the numbers make sense whether it is your project or our projects.

Feel free to contact our office for additional information about the Millionaires Real Estate Investment Group. We

look forward to getting to know you and finding out more about you and your business and how we can possibly

work together moving forward. info@themillionairesgroup.com 954­306­3586

TIPS FOR SUCCESS MICHAEL POGGI

http://assetprotectionservices.com/

Making the Decision to Control Your Money

MAKING THE DECISION TO CONTROL YOUR MONEY (PART 2) REBECCA RICE

nterest: Are you paying it or are you earning it?

Secret #1: Uninterrupted Compounding Interest paid to YOU.

Many of us have been on the paying side of interest. When we borrow money for a house, car, or credit card

debt, the interest is relentless. It doesn’t sleep. It doesn’t rest. It never takes a day off. It continues to add up.

By Rebecca Rice

I

excerpt from the book multiply your wealth

Chapter 1. Why Have You Missed This Secret? (Part 2)

Albert Einstein is thought to have

said, “Compound interest is the

eighth wonder of the world. He who

understands it, earns it…he who

doesn’t…pays it.”

Your path to financial security has a

direct relationship to compounding

interest. Compounding means that

the interest you earn also earns

interest.

If you have $10,000 and it earns

5% interest in a year, you have

$10,500 at the end of the year. If

that interest is paid monthly, it looks

like this: (see figure 1.1)

You may look at this chart and

think, “No big deal, that’s only and

extra $14.72.” But look what

happens when you allow that

compounding interest to grow for

10, 20, or even 60 years.

Your one time deposit of $10,000

grew to $199,607.39 without you

adding one more cent! That’s the

gift of time and compounding

interest. (see figure 1.2)

Figure 1.1

Figure 1.2

What if you put in an additional $500 a month to your original $10,000?

In 60 years you’d have accumulated $2,356,483.65 when

compounded annually. Your cash investment would have totaled

$370,000 of that amount. The rest—nearly $2 million—came from

compounded interest alone.

Look at what happens when you start with a smaller amount and allow

it to compound for a longer time. In the following chart, you started with

only $1,000. Even though it’s 1/10th the amount of the illustration

above, with 8% compounding and 40 more years, it’s also grown to

over $2 million.

MAKING THE DECISION TO CONTROL YOUR MONEY (PART 2) REBECCA RICE

The profitability of compounding

interest works regardless of

interest rate. The higher the

interest paid, the faster the

growth. The more frequently

interest is compounded, the

faster it grows. Interest

compounded daily grows faster

than interest compounded

monthly, quarterly, or annually.

Banks, for example, will charge

you interest on your loans compounded daily (more money for them). And they will pay you interest on your

savings quarterly (less money for you).

You can go to http://investor.gov/tools/calculators/compound­interest­calculator and check out different results.

Plug in your current principal and optimal monthly additions. See how much your money will grow over time.

Yes, compounding interest is profitable. But how can you get it? You know banks are paying nearly zero

interest on accounts. Bonds and stocks have higher interest or dividends, but the underlying asset is subject to

risk and market swings.

What good is earning 8% on $10,000 in stocks and

bonds, when the underlying $10,000 might drop to

$6,000? When you add market fluctuations into your

compounding interest growth, you end up with

remarkably less money.

Figure 1.4 shows compounding when you include stock market losses that reduce your capital.

Uninterrupted, this same 8% yield would give you over $9 million! (See Figure 6.2 in Chapter 6 of the

book)

Where Can I Find a Secure Place to Earn Uninterrupted Compounding Interest?

What investment or savings institution is free from market fluctuations?

MAKING THE DECISION TO CONTROL YOUR MONEY (PART 2) REBECCA RICE

One of the best kept secrets in the entire

financial services industry are the “Living

Benefits” found within certain kinds of life

insurance. It is a completely safe place to

compound your money. When you purchase whole

life insurance from a Mutual Life Insurance

Company, you actually own part of the company.

While you may have heard bad things about whole

life insurance, I encourage you to withhold

judgment. Read the truths in Chapter 4 and decide

for yourself.

The profits of a mutual life insurance company are

returned to you, the owner, through dividends.

Over the years as inflation has increased or

decreased, the dividends paid have ranged from

3% to 12%. At times, mutual insurance companies

have announced added dividends. Your money

keeps pace or stays ahead of inflation.

Mutual life insurance

company failure is

extremely low, much

lower than banks or

other stock companies.

Even in the few

cases of failing

insurance companies,

other companies step

in and make sure

policy owner’s money

is safe and insurance

policies are fully paid.

In their 200 year history, no policy owner has ever

failed to receive his or her life insurance payment. You

will get your death benefit from mutual life insurance

companies.

Unlike banks that can loan out 90 times more than

savers have deposited, insurance companies are

required by law and by contract to keep 100% of their

assets secure. That means your money is safe,

secure, and growing.

When you own a dividend­paying whole life insurance

policy you gain access to compounding interest that

increases your wealth day after day and year after

year. Each year it’s worth more than the year before. It

is also:

• Safe

• Private—it’s not reported to the IRS

• Not subject to market swings

• Keeps up with inflation.

MAKING THE DECISION TO CONTROL YOUR MONEY (PART 2) REBECCA RICE

Rebecca Rice

Rebecca Rice has been a financial planner for 25 years; her breadth of experience helps her clients

navigate all aspects of gaining financial freedom and wealth management. She is Managing Partner

and Founder of her firm, RebeccaRice and Associates, which was established in 2001.

Rebecca is considered a master of the Living Benefits of Whole Life insurance among her peers.

She can show you how to use Living Benefits to invest in real estate as well as build a business, pay

off debt, build financial freedom, gain retirement income, and produce generational wealth—because she’s done it all.

Rebecca holds two degrees from the University of Arkansas—a BSBA in Marketing and a BA in Management.

Rebecca’s people­oriented, friendly personality and faith based heart help her relate to her clients on a personal level, allowing

her to build the best financial strategy possible. Her goal is to educate her clients on bettering their financial situations and offer

them strategies that best fit their needs.

A current member of the National AALU and Life Insurance Product Committee for Mass Mutual, Rebecca has also served as

past President of the GAMA Association through her relationship with a well­known life insurance company.

She has written a book, entitled Multiply Your Wealth: Essential Secrets for Financial Freedom, published in 2014.

In her personal life, she is a Patron and Auxiliary member for Arkansas Children’s Hospital as well as supporting and working with

many other non­profit organizations. Rebecca is happily married, has 3 children, 2 grandchildren, and 2 beloved dogs, all of

whom who live in Arkansas, close to her.

Additionally, money in a dividend­paying whole life insurance policy gives you “living

benefits.” You gain use of your money for many things while you are alive. You can:

1. Gain safety, control, freedom, and privacy

2. Borrow money low cost or net­zero cost

3. Avoid credit checks or bank approval

4. Gain tax­free retirement income – yes! Tax­free

5. Loan your business money and save taxes

6. Recapture lost opportunity costs

7. Keep your money safe from bankruptcy and lawsuits depending

on individual state laws

8. Pay of debt faster

9. Create an emergency fund

How have the rich used this strategy to multiply their wealth, keep their money safe, and achieve financial freedom?

MAKING THE DECISION TO CONTROL YOUR MONEY (PART 2) REBECCA RICE

“Search for Multiply Your Wealth on Amazon.” The price is $14.99.

http://www.reianyc.org

7 Personal Finance

Questions to Ask Yourself

Before Getting a Mortgage

7 PERSONAL FINANCE QUESTIONS TO ASK YOURSELF BEFORE GETTING A MORTGAGE DR. TERESA R. MARTIN

re you ready for a mortgage? It’s a big step that requires careful planning. A mortgage will affect

your financial future for years to come.

By Dr. Teresa R. Martin

A

Before you sign that mortgage, consider these finance questions:

1. What is your credit score? Credit scores affect mortgage rates.

• Before buying a house, check your credit score. Should you raise your score to get a better

interest rate? In general, high scores with no late payments during the last three years are enough

to get good rates.

2. Are you capable of handling maintenance costs? It’s important to consider the cost of maintenance

before buying a house.

• The mortgage is only one part of the total cost of owning a house. Maintenance is another

important piece. Will you be able to pay for a new roof or air conditioning system when the

current ones wear out?

• Does your monthly budget include enough savings for maintenance?

• It’s also important to consider DIY projects and hiring others to complete tasks. House

maintenance can involve expensive and ongoing projects. Are you ready to pay for these costs?

3. How secure is your job? Before signing a loan, evaluate your job security. Will the work last? How will you

handle changes?

• Evaluating your job future is

part of planning for a home

purchase.

• Consider emergency funds

and savings in your plan. If

your job situation changes,

will you be able to continue

making monthly mortgage

payments?

7 PERSONAL FINANCE QUESTIONS TO ASK YOURSELF BEFORE GETTING A MORTGAGE DR. TERESA R. MARTIN

4. Do you have the necessary financial

paperwork? Mortgage applications require a great

amount of paperwork. Lenders can ask for old tax

statements, check stubs, savings account statements,

and other information.

• If you have a high credit score, you

may get a no documentation loan.

• It’s rare to get a no documentation

loan, so it’s better to be prepared by checking your files and collecting the financial papers you

may need.

5. Did you calculate the hidden expenses of owning a home? Home ownership comes with multiple

expenses that go beyond appraisal fees, property taxes, mortgage closing costs, and insurance.

• One of the hidden expenses of moving to a home is more bills. If you’re used to renting, then

home ownership can change your monthly bills by adding new ones. You’ll add trash collection,

water, recycling and sewage in most locations to the expense list.

• Home insurance is higher than renter’s insurance. In addition, older homes cost more.

• Homeowners' association fees are becoming more common in neighborhoods. You may be aware

of condominium association fees, but are you ready to pay homeowners’ fees?

6. Do you have an emergency fund? Emergencies can vary from broken dryers to flooded patios, so you

need to be ready for anything.

Is your emergency fund big

enough to handle common,

unplanned expenses?

• Emergency funds are a

better option than credit

cards or loans. Putting

enough money aside can

help you avoid new debt.

7 PERSONAL FINANCE QUESTIONS TO ASK YOURSELF BEFORE GETTING A MORTGAGE DR. TERESA R. MARTIN

7. Are you applying for other credit? Mortgage lenders can see applications for other types of loans on your

credit report.

• Applying for other types of credit while trying to get a mortgage can hurt your loan.

Mortgage companies view these applications as risks, so it’s better to wait before trying to get

another credit card.

• Applications for new credit lower your credit score and affect interest rates.

A mortgage is a responsibility that affects multiple areas of your financial life. Before you buy a house,

consider how your current financial situation will be affected and plan for emergencies.

Dr. Teresa R. Martin

Dr. Teresa R. Martin, Esq. is the founder of Real Estate Investors Association of NYC (REIA NYC).

REIA NYC (www.reianyc.org) is a premier real estate investment association serving the New York

City marketplace. Its primary focus and mission is “helping our members build, preserve, and harvest

multi­generational wealth” in the areas of real estate investments, business ownership and personal

development.

7 PERSONAL FINANCE QUESTIONS TO ASK YOURSELF BEFORE GETTING A MORTGAGE DR. TERESA R. MARTIN

http://www.reianyc.org

The Flip Side Of Private Lending

By Sensei GillilandFounder of Black Belt Investors

THE FLIP SIDE OF PRIVATE LENDING SENSEI GILLILAND

hould you be a private lender? As you know I have been one of the most visible and vocal advocates of

wholesaling houses and remote rehabs. However, I have to admit that being a private money lender is

becoming increasingly attractive. I’d now rank it in the top three smartest ways to generate returns in

real estate. So who should consider this investment strategy? Why is this the best moment for this type of

investment? Who on earth should you consider lending to?

s

This is the Third Fastest & Easiest Way to Profit from Real Estate; is it for You?

Lending Versus Borrowing

I’ve been investing in real estate and training

investors from coast to coast for over 20 years. I’ve

connected with thousands of students and seasoned

investors can helped them get started and scale

wholesaling businesses and rental property

portfolios. I still love these two strategies, and I

wouldn’t ever give them up either personally or as a

recommendation for those looking to increase their

cash, wealth, and time freedom.

Still, being a private lender is getting more attractive.

For some this role may be the most attractive move.

For others is at least a core part of their total

financial plan.

The Wall Street Journal, Forbes, and the JOBS Act

have helped to raise awareness of the benefits of

private lending, and have no doubt aided this type of

investment becoming more mainstream. But who is it

really right for?

You might consider becoming a private lender if:

a. You have $10,000 or more free to invest

b. You are too busy to rehab homes on the

weekends

c. Wholesaling houses just doesn’t appeal to you

d. You are extremely busy, and love your current

career

e. You need more from your retirement savings

f. Your portfolio needs diversification or

restructuring

The Advantages of Private Lending for 2016 & Beyond

The main draws to private lending are:

• Truly passive income

• Above average returns

• Security of investing in real estate

THE FLIP SIDE OF PRIVATE LENDING SENSEI GILLILAND

Those individuals that have been investing in stocks

and bonds and gold may find there is no better time

to adjust their portfolios to include private real estate

loans. Gold prices are up there. Fund giant Bill

Gross has warned that we are in for negative rates

for quite a while. That means bonds and savings

accounts costing money, rather than protecting it.

Even the former CEO of Wells Fargo recently came

out and suggested we don’t put new money into the

stock market. That’s big. Real estate is about all

that’s left.

It doesn’t get much simpler than loaning your money

to someone else; letting them do all the hard work.

Then enjoying a share of the profits. That is if you

make good loans.

Who Do You Loan To?

The mechanics of making loans or partnering up is

relatively simple. The real minefield is lending on the

right properties, and to the right investors.

There is no shortage of buyers and real estate

investors, or other lenders who will be eager to borrow

your capital. Walk down the street with an “I sell

money badge,” and you should find plenty of takers.

Of course few might deserve it, or will be able to

handle it. They may have great marketing and

presentation materials, and the best intentions in the

world. But if they don’t have what it takes to deliver

then it’s highly risky.

So what should you be looking for in someone to lend

your capital to?

• Experience

• Long term, big picture thinking

• A proven system

• A sustainable business model

• Have a strong advisory team

Of course the best borrowers or investment teams are

going to be equally selective about who they accept

capital from. I know I am. In most cases, when a bank or

credit card money sends me an offer I know it’s probably

a bad deal. I don’t need the money, and it is normally on

terms which are in their favor, and borrowing is doing

them a favor. I don’t know about you, but I don’t feel that

sympathetic with most high street banks. At least not to

the point where I feel I have to make them a profit. But I

do like helping ethical individuals, couples, and families

find a way to get ahead.

THE FLIP SIDE OF PRIVATE LENDING SENSEI GILLILAND

When I’ve entertained putting capital into my deals for others in the past, or making introductions between my strongest

investor students and private lenders I am looking at what extra value that lender brings to the table, and what extra value

they’ll receive in return. A good private lender is one who accepts fair terms for making a good investment, with a great

business or investor. They have good character (you don’t want to be caught up in money laundering or fraud). They can

work as fast as you do, are flexible, and understand the roles both the frontline investor plays, and are excited about just

collecting reliable, above average returns, while they go about being busy with the other things they really care about.

Could private mortgage lending be for you? With lower barriers to entry today, and us being busier than ever, it could

certainly be a good entry point into real estate for many, or an attractive option to add to the mix in a well­rounded portfolio.

Thinking about private lending? Get a free strategy session with Sensei by calling now 951.280.1900.

Sensei Gilliland

Founder of Black Belt Investors; Sensei Gilliland has been featured on the cover of Real Estate

Wealth Magazine, hosts ‘The West’s Top Ranked Real Estate Investors’ Club’ – 12 ROUNDS, and

has engineered several highly popular trademarked real estate investment systems. Sensei is the

go­to source for serious investors and entrepreneurs seeking extremely effective, no holds barred

training, investment properties and funding. Claim your copy of his powerful Cash and Wealth Report here.

THE FLIP SIDE OF PRIVATE LENDING SENSEI GILLILAND

https://udirectira.com/

Mortgage Free Real Estate

By Matthew Pillmore

MORTGAGE FREE REAL ESTATE MATTHEW PILLMORE

f you have a loan on your primary residence and/or rentals, you may have considered whether it would be

worthwhile to pay it off ahead of schedule. And if so, you’re not alone.

The debate over whether to prepay your mortgage is perpetual in the personal finance world.

Disclaimer: I am not a lawyer or an accountant. Nothing here should be construed as professional advice. I suggest that you always retain the services of a competent professional to provide advice on your transactions.

I

Pay Off Your Mortgage or Invest? The Math Says…

On one side, some experts argue you should NOT

prepay your mortgage if you are locked in at a low

interest rate. Their reasoning: You would be better off

INVESTING your money where a reasonably

diversified stock portfolio can expect to earn at a

higher rate of return on average over the long run.

Add in the home mortgage interest deduction you can

take on your federal taxes and, they say, you would be

silly to prepay your mortgage and miss out on those

perks.

To this group, the question is just about math. After all,

why would you prepay a loan at 3% or 4% and lose

out on part of a valuable tax deduction when you could

invest that money instead and earn considerably

more?

But There’s a VERY Important Side to Prepaying Your Mortgage, Too

Still, there are plenty of experts who forge ahead with

their mortgage prepayment plans. My parents

(including a CPA father) fell squarely in that category.

of taking the standard 30 years to pay off their

mortgage, they paid it off in well under 10 years.

Ask him if he cares about the tax deduction they

missed out on, and he’ll probably look at you like a

crazy person. Why? Because the decision to prepay

was never JUST about the math to them; it was

about their financial freedom. And math aside, they

have never regretted their decision to pay off their

home and become entirely debt­free.

Most people agree with that sentiment, eventually.

Most, just don’t like debt. It’s as simple as that.

But others prefer a deeper analysis.

Analyzing the Pros and Cons

For starters, let’s take a look at what the home

mortgage interest deduction really means.

The easiest way to figure out your home mortgage

interest deduction is to look at your effective tax rate.

Say your overall tax rate is 22%, for example. On

average, the home mortgage interest deduction

reduces your taxes by $22 for every $100 you pay in

mortgage interest.

MORTGAGE FREE REAL ESTATE MATTHEW PILLMORE

That’s a nice perk, but there’s a caveat. Your home

mortgage interest deduction is only valid for the

amount you deduct over and above the standard

deduction, which is available to taxpayers who don’t

itemize their returns. The standard deduction for

married spouses filing jointly was $12,400 in 2014.

So what does that mean? Simply put, if you don’t

itemize your taxes, your home mortgage interest

deduction is worth nothing. And even if you do, it’s

only worth what it helps you save over the standard

deduction that anyone can take. In many cases, this

drastically reduces the value of the home mortgage

interest deduction to the point where it’s barely worth

considering.

But what about those lost investing returns? When

you ask people whether or not they prepay their

mortgage and why, you’ll find plenty of skeptics who

balk at the idea of carrying long­term debt in favor of

investing their extra dollars in the stock market. And

when it comes to who is “wrong” or “right,” there are

several ways to look at it.

The interest you save by prepaying your mortgage is

a “sure thing.” Many people are happy prepaying

and banking the extra money they save on interest,

even if it’s less than they may have earned by

investing their extra dollars instead.

A Balanced Approach

As someone who loves leverage but despises (ALL)

debt, I see both sides of the issue. And that’s why I

personally take (and teach) others to consider a

balanced approach.

My only debt includes what is used to advance the

assets and income growth of my plan, but is paid

back strategically to $0 as quickly and safely as

possible. I don’t see the reason to choose between

investing extra money OR prepaying my mortgages,

so I rely on Debt Weapons™ to do both faster.

What About Debt Weapons™??

Debt Weapons™ are tools that allow any consumer

to achieve 1 or more of 7 highly financially beneficial

purposes.

1) Maximize Cash Flow

2) Compress Amortization Schedules

3) Replace Inadequate Bank Accounts

4) Invest More Quickly & Safely

5) Minimize Total Interest Costs

6) Enhance & Protect FICO® Credit Scores

7) Quickly Increase Financial Safety and Emergency

Reserves

To be clear, VIP Financial Education does not

provide or offer Debt Weapons™.

MORTGAGE FREE REAL ESTATE MATTHEW PILLMORE

We do the research for our Coaching Members in order to help them decide where to go to get the right Debt

Weapons™, at the right time, to accelerate their unique goals.

Just like exercise equipment can injure you when used incorrectly, Debt Weapons™ can also be quite harmful if

you access the wrong one or use the right one the wrong way.

Applying for any Debt Weapon™ without knowing the proper questions to ask, can lead to several negative

consequences. For example, credit scores can rapidly decline, you could access the wrong Debt Weapon™ for

your intended purpose leading to unforeseeable costs and terms, possibly delaying your goals even further.

That seems like a good compromise to me. Still, there is nothing wrong with taking sides on this issue.

When you hate debt, you want to put it behind you once and for all, and that’s understandable. But it’s also

understandable for someone to make their decision based solely on the numbers. After all, it’s hard to argue

with math. At the end of the day, we all have to do what is best for our families – and what helps us sleep best

at night.

So, should you pay off your mortgage quickly? It is, and always has been, up to you, yet by joining us at the

upcoming event with Realty 411 you will learn how YOU too can rely on Debt Weapons™ to take a more

advanced approach and achieve BOTH simultaneously, far more quickly.

Matthew Pillmore

President

VIP Financial Education

MORTGAGE FREE REAL ESTATE MATTHEW PILLMORE

Becoming Your Own Banker with The Infinite

Banking Concept™

BECOMING YOUR OWN BANKER WITH THE INFINITE BANKING CONCEPT JAMES NEATHERY

he Infinite Banking Concept is a method which allows any individual or business owner to Become Their Own

Banker using a financial tool that has been around for over 200 years.

People can use this strategy to create their own private economic system allowing them to control the banking

function in their lives.

This allows the practioner of IBC to capture the equivalent of the interest they pay to 3rd party lenders over their lifetime,

which is significant. They also earn the equivalent of dividends typically earned by the banks when using bank financing.

T

By James Neathery

IBC equates to building cash in a pre­engineered tax

free trust then using that cash to finance everything

you were going to finance anyway i.e., autos, real

estate, retirement accounts, vacations, education

etc.

The fact is we finance everything we purchase. We

either pay cash and lose interest we could have

earned or we formally finance and pay someone else

interest; there are no exceptions to this fact whether

the reader recognizes this or not.

The Infinite Banking Concept, Becoming Your Own

Banker is an education in banking, finance and

properly structured dividend paying whole life

insurance issued by a mutual company. It takes

some unlearning as well as learning to grasp this

simple concept. The Infinite Banking Concept is very

simple but seems difficult partly due to the financial

noise that permeates our lives today.

If you would like to learn more, go to:

bankingwithlife.com and purchase the original text

Becoming Your Own Banker, Banking With Life DVD

and How Privatized Banking Really Works.

We have thousands of clients using this method to

build and maintain control of their wealth

generationally. One of my favorite examples is of a

client in the construction business. He uses IBC to

purchase loads of rebar, a commodity that fluctuates

in price. He buys at a volume discount allowing him

to outbid his competition when bidding construction

jobs. Business owners often use this method instead

of lines of credit (which the bank controls); real estate

investors can use this instead of hard money.

I am a student of my profession. While attending a

two day seminar in 2004 I purchased the book

Becoming Your Own Banker with several other books

the speakers referenced. After reading BYOB I

restructured my life insurance and investments and

have been using this method personally and teaching

my clients how to implement this concept into their

lives.

The Infinite Banking Concept has changed my life, my

practice and the lives of 1000’s of clients.

If you give this concept a thorough investigation,

without prior contempt, it will change the way you look

at money.

Order the book Becoming Your Own Banker and the

Banking With Life DVD today and I will send you the

book How Privatized Banking Really Works!

BECOMING YOUR OWN BANKER WITH THE INFINITE BANKING CONCEPT JAMES NEATHERY

James Neathery

CEO, James C. Neathery and Associates

James Neathery specializes in providing strategic financial advice based on decades of research

and experience in the fields of finance and economics. James is a disciple and student of R.

Nelson Nash, the creator of the Infinite Banking Concept™. He is also a student of the Austrian

school of economics. James holds several designations, maintains multiple affiliations and is

active in the financial services industry. He has been in the life insurance industry for more than 24 years, has been

educating clients and personally practicing the Infinite Banking Concept™ for nearly a decade.

James C. Neathery & Associates, Inc. has provided sound, successful advice to thousands of clients. Over the years he

has helped them protect millions of dollars in wealth and assets through several boom and bust cycles in the U.S.

economy.

James is the Executive Producer of the best­selling documentary on the Infinite Banking Concept, Banking With Life. The

powerful information in this film is being used by financial professionals across the country to educate their clients on how

to take control of their money by solving the banking equation in their lives.here.

About Infinite Banking James Neathery Our Team Nelson Nash

BECOMING YOUR OWN BANKER WITH THE INFINITE BANKING CONCEPT JAMES NEATHERY

http://www.singlefamilyfortunes.com/

Many U.S. Communities Seeing Real Estate Inventory

and Lead Shortage

By Leon McKenzie,Managing Partner, US Probate Leads

MANY U.S. COMMUNITIES SEEING REAL ESTATE INVENTORY AND LEAD SHORTAGE LEON MCKENZIE

s a professional real estate investor, keeping a pulse on the changes in the market can be the

difference between having a profitable year and seeing losses in your business. Seeing these trends

and knowing how to react to them can be one of the most critical skills for any individual working in

the property business.

A

One of the most pronounced trends in the market

recently has been the tightening of real estate inventory

and, consequently, a shortage of leads. This trend has

paralyzed many real estate professionals and prevented

them from finding and making the deals that will take

their business to the next level. The contributing factors

to this problem come from many areas. Knowing a bit

about the factors that are causing the issue will help you

to navigate the current changes in the market.

Contributing Factors to Real Estate Shortage

There are a myriad of factors that may be affecting your

real estate business and your ability to find good

properties – both on the residential and the commercial

side – that will lead to profits and excellent options for

your portfolio. Alan Heavens of the Philadelphia Inquirer

reported, “Research from the National Association of

Realtors shows the U.S. needs to build 1.3 million to 1.7

million housing units annually to keep pace with yearly

household formations averaging 1 million to 1.4 million,

in addition to replacing the 300,000 obsolete dwellings

that are razed each year. Statistics released two weeks

ago by Freddie Mac, however, show that only 910,000

units were started in 2008 and 550,000 in 2009.

Projected starts for 2010 are better, but just 700,000

units.”1

Decreased construction means that more

homeowners and business owners are staying

where they are in terms of their location.

Homeowners and business owners who would like to

relocate to a new home or office space simply don’t

have any options from which to choose. This means

that people are more likely to pursue the option of

remodeling or adding on space rather than going out

into the real estate market and looking for a new

residential or commercial property.

Heavens said that it can be challenging to try to

predict how much space will be needed in any given

year, “Predicting how much housing is needed

involves a complex calculus that weighs hard

statistics (new­home starts, sales of previously

owned homes) against a certain amount of

demographic tea­leaf reading (household­formation

forecasts). Thus, there isn't complete consensus on

what will be enough. ‘At current levels of housing

construction and demand, the nation has just about

two years' worth of excess vacant homes for sale

and rent,’ said Moody's Economy.com chief

economist Mark Zandi.”2 Without additional

construction, many homeowners and those looking

for commercial space may find themselves

frustrated.

MANY U.S. COMMUNITIES SEEING REAL ESTATE INVENTORY AND LEAD SHORTAGE LEON MCKENZIE

Here are just a few statistics that support the issues with the current real estate market according to Heavens:

• “At the current sales pace nationwide, the supply of previously owned houses would take 7.8 months to

exhaust, not including the vast "shadow market" (houses whose owners are waiting to sell until real estate

recovers) and "distressed properties" (foreclosures and bank repossessions).

• The inventory of unsold new houses is at 9.1

months of supply, and the volume for sale is flat

at 234,000 homes — a 30­year low.

• At the end of the fourth quarter, 24 percent of all

U.S. homes with a mortgage were worth less

than the loan balance. The housing vacancy rate

in the fourth quarter was 2.7 percent.

• The U.S. homeownership rate is 67.2 percent,

down from its peak of 69.2 percent in fourth­

quarter 2004 and decimated by record foreclosures.”3

Booming Populations Contribute to Shortage in Some Areas

With the population in the United States continuing to shift to areas with temperate weather, positive economic

conditions and those that don’t have issues with fresh water supplies, some areas are seeing a boom in

population that no level of construction can meet. Connor Hyde writes, “The Sugar Land and Missouri City area

experienced a record number of home sales in 2014. However, population growth in the area paired with

various construction woes has led to a low home inventory, causing a rise in home prices and a dip in sales

since January. Since 2012 Sugar Land and Missouri City real estate agents have classified the area’s housing

market as a seller’s market due to the decreasing inventory of available homes and climbing home costs. As a

result, many of Fort Bend County’s master­planned communities are struggling to keep up with the demand

brought on by the influx in population in the region.” 4

In fact, these changes to the market have driven up the prices of the homes that are currently on the market.

Hyde quoted a local real estate agent, Shad Bogany, who has seen these changes first hand, “‘We have more

customers than we have houses to sell, and we are getting multiple offers on houses,’ said Shad Bogany, a real

estate agent with Better Homes and Gardens Real Estate in Sugar Land and Missouri City. ‘We do not have a

lot of houses to sell, [and] we have the builders, who have been the biggest pushers of home sales in Fort Bend

[County], behind in construction.’”5

MANY U.S. COMMUNITIES SEEING REAL ESTATE INVENTORY AND LEAD SHORTAGE LEON MCKENZIE

Issues with construction in population booming areas

face a two­pronged challenge – not enough qualified

workers for residential projects and not enough

funding. Hyde writes, “Home developers and cities

are competing with projects in the Greater Houston

area, such as the construction of the new Exxon

Mobil campus in Spring and the continued

construction of the Grand Parkway. These major

projects have contributed to the lag in home

construction as there are fewer skilled laborers

available. ‘That is exactly why we cannot keep up

with building homes fast enough,’ Reichert said.

‘There are just not enough workers out there to build

homes [and] builders struggle on a daily basis to find

workers.’” 6

While all of the construction that is being completed

in booming areas may seem like a good thing, there

are also ancillary issues. Hyde writes, “The shortage

in laborers and influx of construction projects has

also led to an increase in the price of construction

materials, which has directly caused housing prices

to increase, Reichert said. Since 2011 material costs

have increased by 11.7 percent and are expected to

climb through June 2016, according to the national

construction management company Turner

Construction Company’s price index.”7

Not only are homeowners faced with fewer

properties to choose from and fewer new

construction projects, but the new

construction they do find may cost the

average homeowner more money than they

can afford to spend. With rising construction

material costs, the associated increase in

new construction prices may prove to be too

much for homeowners. These homeowners

may end up staying in their current home to avoid the

problem.

Changes in Season Effect Inventory

Another contributing factor to the shortage in real estate

inventory is the upcoming change in season. While spring

markets generally show expansion as more and more

property owners put their homes on the market, the

opposite it true during the fall and winter months,

especially in the cold weather climates. Said Lawrence

Yun, “As winter approaches, inventory will slide further.

Few homes are newly listed after Thanksgiving.

Historically, inventory tends to be 15 percent lower in

winter than summer. Last year’s seasonal decline was

even more dramatic, at 25 percent. We hope we won’t see

an inventory decline of that magnitude this winter. Home

values rising much faster than income growth will markedly

cut into housing affordability.”8

The contraction in the market will pull many properties off

of the market with buyers still looking to purchase homes.

Being able to find a property during any time of the year is

becoming a significant challenge for buyers who want to

have several homes they can investigate.

MANY U.S. COMMUNITIES SEEING REAL ESTATE INVENTORY AND LEAD SHORTAGE LEON MCKENZIE

Alternative Leads are the Solution

Is there a way to solve the lack of leads currently

occurring in the real estate market? There is. For

real estate investors who want to continue to profit

no matter the market, looking to alternative leads is

the best strategy. These leads – found in the

probate, divorce and bankruptcy industries – are

the best way for investors to find homes and

commercial properties despite the shortage in the

United States.

Probate leads are plentiful. With experts

estimating that more than 30,000 probates are filed

each month throughout the United States, each

and every county has new options of homes,

personal property, vacation homes and commercial

real estate that are for sale. Executors,

responsible for the sale of property held by

someone who has passed, are under an obligation

from their local court jurisdiction to sell the property

in order to close the probate. What does this mean

for you as an investor? For real estate investors,

probate properties offer discounted prices,

sometimes up to 30% to 50% off of current market

prices, on homes and other property located in

some of the most desirable areas of the region that

you work in. Executors are generally eager to look

at all offers for property as they need to sell the

property in order to pay medical bills, taxes, legal

fees and funeral expenses for their loved one.

Divorce and bankruptcy leads are also another way

to find great deals on property. Usually governed by

the local court system, these leads can also provide

excellent options for discounted prices. With divorce

and probate leads it is critical to have your attorney

review all of your documentation especially during

your first experience working in this market. The

language used in the sales documents can be

different that is used in traditional offers due to legal

requirements. Ask your legal counsel to ensure that

there are ways for you to exit divorce deals if the

parties do not cooperate. As an investor it is not

wise to have your deal stalled due to marital discord.

MANY U.S. COMMUNITIES SEEING REAL ESTATE INVENTORY AND LEAD SHORTAGE LEON MCKENZIE

Accessing Alternative Types of Leads

The best way to access these alternative types of leads is to use a lead service that can help you to locate the

most current and viable option for your business. U.S. Probate Leads, the industry leader in lead coordination,

offers probate, divorce and bankruptcy leads in every county in the United States. Our qualified, trained

professionals visit courthouses to collect the most up­to­date information on what types of property is available

through the probate. Using an expert service will help you to save time on trips to the courthouse and give you

more time to visit properties and make contact with Executors. We offer a full range of services, including

webinars, seminars, books, communication software and even individualized mentoring. Call us today or visit

us at www.usprobateleads.com for more information.

Sources:

1 http://www.matrixrealestate.com/about­matrix/market­news/slowing­construction­could­lead­housing­shortage­experts­say 2 http://www.matrixrealestate.com/about­matrix/market­news/slowing­construction­could­lead­housing­shortage­experts­say 3 http://www.matrixrealestate.com/about­matrix/market­news/slowing­construction­could­lead­housing­shortage­experts­say4 http://communityimpact.com/2015/05/06/low­inventories­labor­shortages­contribute­to­rising­home­prices/ 5 http://communityimpact.com/2015/05/06/low­inventories­labor­shortages­contribute­to­rising­home­prices/ 6 http://communityimpact.com/2015/05/06/low­inventories­labor­shortages­contribute­to­rising­home­prices/7 http://communityimpact.com/2015/05/06/low­inventories­labor­shortages­contribute­to­rising­home­prices/8 http://realtormag.realtor.org/news­and­commentary/economy/article/2012/11/seeds­housing­shortage

MANY U.S. COMMUNITIES SEEING REAL ESTATE INVENTORY AND LEAD SHORTAGE LEON MCKENZIE

http://www.usprobateleads.com/

Solo 401k: A Tax Saving Strategy

for Real Estate Investors

By Dmitriy Fomichenko

SOLO 401K: A TAX SAVING STRATEGY FOR REAL ESTATE INVESTORS DMITRIY FOMICHENKO

f you’re a tax­paying citizen, this quote is likely to make perfect sense to you. Nobody loves taxes, at least

at a deep intrinsic level, irrespective of it being a responsibility we must share. According to a report

published on the Motley Fool, a finance website, out of the gross tax collections worth $2.86 trillion in

2013, individuals paid $1.54 trillion or 54% of them, with an average individual tax bill of $8,548.

I

However, the average individual tax bill doesn’t project a clear picture of average tax rates. For an instance,

the average person earning between $125,195 and $175,817 was taxed at 21%. If you made $150,000

during the given financial year, you would’ve paid $31,500 in taxes. That’s nearly four times of the average

individual tax bill in 2013.

If you’re a fairly successful real estate

investor, saving on taxes could be a

potential challenge for you, and you

might have been spending a lot of time

figuring out effective tax strategies.

Self­Directed Solo 401 K Plan: 3 Tax Saving Strategies For Realtors

At Sense Financial, a major part of our

clientele involves real estate

professionals, seeking effective methods

to cut their taxable income. As a self­

directed Solo 401k plan provider, we

help our clients cut their taxable income

by a huge margin; precisely up to

$59,000 in 2016.

A Brief Insight into Self­Directed Solo 401 k Plan

Solo 401 k plan is a qualified retirement plan from the IRS,targeting owner­only businesses and self­employed

individuals. As a part of the annual contribution limits, you can contribute up to $53,000 in 2016 along with a

catch­up contribution of $6,000 for professionals above the age of 50 years.

The primary attraction of this plan is its ability to invest in a plethora of investment options, including real

estate, tax liens, tax deeds, mortgage notes, private lending, and private businesses along with the traditional

investment options.

Contribute up to $59,000 of Your Real Estate Income in 2016

If you are a realtor with no full­time employees, you can contribute up to $59,000 in 2016. The contribution

includes a salary deferral contribution along with a profit­sharing contribution.

SOLO 401K: A TAX SAVING STRATEGY FOR REAL ESTATE INVESTORS DMITRIY FOMICHENKO

Salary deferral contribution: Under the salary

deferral contribution, you can put up to $18,000 in

2016along with a catch­up contribution of $6,000 for

professionals above the age of 50.

Profit­sharing contribution: The profit sharing

contribution allows you to contribute 20to 25% of

your business income, with maximum cumulative

contributions of $53,000 or $59,000, for

professionals above 50 years, in 2016.

Case I: Melinda,41 years old and a real estate

investor operating as a corporation, had a net

income of $180,000 in 2015. She could contribute up

to $18,000 under salary deferral contributions along

with profit­sharing contributions of $35,000, cutting

her taxable income by $53,000 in 2015. It is

important to consider that although 25% of her

business income is$45,000, Melinda can only

contribute up to $35,000, as the maximum

contribution limit comes into play.

Case II: Bob, 53 years, operates as a part­time real

estate professional, generating an income of $60,000

from his real estate business in

2015. Bob contributes $6,500

in his company­sponsored

retirement plan, which cuts his

salary deferral contribution in

the Solo 401k plan to $17,500

in 2015, making net salary­

deferral contributions of

$24,000. As a single member

LLC, Bob can further contribute

up to 20% of his business

income or $12,000 in 2015,

allowing him to cut his taxable

income by $36,000.

Find out your annual contributions with our

contribution calculator.

Purchase Rental Property with Solo 401 k plan & Defer Taxes on Rental Income

If you already have a self­directed Solo 401 k plan,

start purchasing rental property within your

retirement account. The IRS allows investing in real

estate through a Solo 401 k retirement plan, which

means you have the option to defer taxes on your

rental income until distributions.

You will have to purchase the property through your

Solo 401 k plan, and if there are insufficient funds in

your account, you can use non­recourse financing to

fund the transaction. Unlike IRA plans, the use of

non­recourse financing through a Solo 401 k plan

does not trigger any additional tax. Make sure that

the maintenance cost of the property goes through

your retirement account only, and the rental income

comes directly into the plan as well.

SOLO 401K: A TAX SAVING STRATEGY FOR REAL ESTATE INVESTORS DMITRIY FOMICHENKO

A large part of our clientele is involved in rental

property investment, including single family homes,

multi­family apartments, and even commercial real

estate. Investing in a rental property with your

retirement plan can help you restrict your tax

burdens while offering the benefits of real estate

investing.

• Tax­deferred growth of rental income

• Ability to finance property purchase using non­

recourse loan without paying UBIT tax

• Retirement account pays for maintenance experienced

Pay Taxes on Capital Gains at the time of Withdrawals Only

The same rules apply to the capital gains realized

from the sale of a property within your Solo 401 k

plan. Unlike regular real estate transactions, you can

defer taxes on your capital gains to as far as your

withdrawals. It allows you to keep the entire gains

within your plan, and these funds are available for

your upcoming real estate transactions.

Every now and then we hear real estate success

stories from our clients but this one was even

beyond our imagination.

One of our clients,

Bill, invested in an

organic mango

farm in Panama,

spread across 2.5

acres, and it was

managed by a local

turnkey operation company. His next investment

came out to be a Neem tree farm in Brazil, and he

was able to make these investments with a self­

directed Solo 401 k plan. Any income procured from

these farms in the future will directly go into the self­

directed account.

A self­directed Solo 401 k plan helps you in creating

a diversified retirement portfolio while offering

complete freedom in asset selection. It is time to

leverage your retirement savings and build a

retirement account that will truly outlast you.

Dmitriy Fomichenko

Dmitriy Fomichenko is President and Founder of Sense Financial, a leading provider of retirement

accounts with "Checkbook Control": the Solo 401k and the Checkbook IRA. To learn more about

the Solo 401k plan, please visit sensefinancial.com or email us at info@sensefinancial.com.

SOLO 401K: A TAX SAVING STRATEGY FOR REAL ESTATE INVESTORS DMITRIY FOMICHENKO

http://www.icgre.com/

Here’s The Capital You Need

HERE'S THE CAPITAL YOU NEED DANA BERSCH

here’s a whole buffet

of real estate deals out

there. With powerful

unsecured credit lines

from Stonebridge Capital Group

you can cherry pick the deals you

want on­demand.

At Stonebridge Capital, we don't

believe you need a winning lottery

ticket to realize your financial

dreams. There is a constantly

moving “good luck conveyor belt”

in front of today’s business

owners, entrepreneurs, and real

By Dana Bersch

Testate investors. The catch is that

“you need the money to take

advantage of those opportunities,

and good deals simply won’t wait

for you to find the money.”

The Biggest Problem You Face Today

The most pressing issue on the

current landscape isn’t a lack of

deals, buyers, or renters, “the

biggest problem facing business

owners today is a lack of access to

capital.”

The data shows that most

businesses fail because they just

run short of cash flow. They can

no longer pay the bills, push out

great marketing, or seize on the

best opportunities. Some fail

because they don’t appreciate

their need for funding, or how

much they need. Others are stuck

with rigid funding sources and

arrangements that don’t serve

them well, or simply haven’t found

an attractive source of financing.

Ultimately the main source of

failure is all about the money.

We are constantly reminding all real estate investors and entrepreneurs

that they are in business. “Flipping houses is a business.” So is acquiring

and operating rentals, wholesaling, and note investing, and so on.

I know the challenges these entrepreneurs face well. As a business

owner for more than 30 years, I understand the pitfalls small businesses

have in having access to capital, which is critical for their success.

Before I started Stonebridge Capital in 2006, I was involved in several

industries, including manufacturing, healthcare, restaurants, real estate,

oil and gas investments, and entertainment.

Over the last decade, the Stonebridge team has been working with

hundreds of entrepreneurs, investors, and business owners to help them

recognize their need for additional capital, position themselves to obtain

the best funding, and get generous lines of credit.

The Unsecured Credit Line Advantage

Stonebridge Capital specializes in providing business and personal lines

of credit from $25k to $250k. We also have access to bank term loans,

which can add to the amount of funding.

This credit is working capital that

real estate investors, entrepreneurs,

and business owners can use for

just about anything they need. That

means acquiring new properties,

down payments, paying down high­

interest debt, rehab work,

marketing, filling the gaps when

tenants are late on rent, etc.

Credit lines offer a huge advantage

to real estate professionals. You

only pay on the money you are

actively using, it helps you qualify

for the mortgage or hard money

loan, covers expenses while you

are involved in your rehab, and

once you cash out on deals and

pay it down, the money is right

there to use again, without all the

application and appraisal hassles

and expenses.

We receive a sizable portion of our

business from referrals from

mortgage brokers and hard money

lenders for clients who need to

increase their down payment to

qualify for their loan and to bridge

the funding gap from what they

provide too. Additionally using an

unsecured line of credit means no

liens on your properties, and never

diluting your business ownership

or giving up control as with equity

fundraising.

HERE'S THE CAPITAL YOU NEED DANA BERSCH

Features to Love:

• Funding in just 10 to 21 days

• 24 hour preapproval

• No application fee

• 0% interest for up to 24 months

• Stated income

• New startups OK

• 680+ FICO score

• Free guidance on maintaining, optimizing, and growing your credit

Don’t Prejudge Your Credit

If an extra $250,000 could help your business (and you can bet it can), “don’t prejudge your credit.” There are

no application fees, and you can find out how much of a line you can get within 24 hours.

Check it out and get pre­approved online at www.sbcapgroup.com/sb or call 480.626.1772.

HERE'S THE CAPITAL YOU NEED DANA BERSCH

https://sbcapgroup.com/sb

http://realty411expo.com/

ORBA LINDA, Calif., Aug. 16, 2016 – Real estate professionals in California wait on pins and needles

as they navigate California’s unusual real estate market. Prices continue to increase under the

pressure of record­low housing supply, life­time­low interest rates, and bullish demand. How high can

California go? Is a crash inevitable in 2017?

Y

EXPERTS TO DISCUSS CALIFORNIA'S REAL ESTATE BUBBLE AND DIGITAL DISRUPTION AT CHARITY EVENT BY THE NORRIS GROUP AARON NORRIS

Experts to Discuss California’s Real Estate Bubble and Digital Disruption at Charity Event

Organized by The Norris Group

By Aaron Norris

Top officials from Zillow, Fannie Mae, National Association of Hispanic

Real Estate Professionals, and PropertyRadar join real estate analyst

Bruce Norris on Oct. 21st at the Nixon Presidential Library for The Norris

Group’s 9th annual “I Survived Real Estate” charity gala

“Some California markets have blown through their past peak prices,” says Bruce Norris, President of The Norris

Group and host of I Survived Real Estate. “Distressed inventory has been replaced by sellers with equity,

institutional buyers have moved on to greener pastures, and interest rates could start with a two in the year ahead.

Our network is nervous and increasingly cautious.”

Norris says the US has never experienced

such anemic GDP growth in combination

with an unemployment rate so low. Real

estate professionals are watching

affordability numbers descend at a time

when wage growth has stagnated, the

political environment has people playing

conservative, and even extremely qualified

borrowers struggle to get financing. Add to

that the fear that technology will displace

many pieces of the real estate industry and

it’s no wonder industry professionals are concerned.

Norris has assembled a panel of real estate experts to address the current state of real estate and its implications

for consumers and real estate professionals during his 9th annual “I Survived Real Estate” charity gala on Friday,

October 21, at the Nixon Presidential Library in Yorba Linda.

Other topics of discussion will include digital disruption in real estate, California buyer demographics, Millennial and

Baby Boomer ownership trends, and the forecast for a post­election real estate market.

Expert panelists scheduled for this year’s “I Survived Real Estate” charity gala include:

• Nick Bailey, VP of Zillow

• Gary Acosta, CEO of National Hispanic Association of Realtors

• John Burn, John Burns Real Estate Consulting

• Doug Duncan, Chief Economist of Fannie Mae

• Sean O’Toole, CEO of PropertyRadar.com

• Bruce Norris, President of The Norris Group

Proceeds from the Oct. 21st “I Survived Real Estate” event will be donated to Make­A­Wish® Orange County and

the Inland Empire, and to St. Jude Children’s Research Hospital. The event has raised over $600,000 for charity in

the past eight years.

EXPERTS TO DISCUSS CALIFORNIA'S REAL ESTATE BUBBLE AND DIGITAL DISRUPTION AT CHARITY EVENT BY THE NORRIS GROUP AARON NORRIS

On Saturdays leading up to the event, Norris will interview an “I Survived Real Estate” panelist or local expert about

current market conditions within that expert’s area of expertise. Norris regularly interviews economists, government

officials, association presidents and other industry thought leaders on his weekly real estate radio talk show, which

airs at 6 p.m. Saturdays on KTIE 590 AM in San Bernardino. Podcasts of Norris’s radio interviews can be accessed

through his company website, www.thenorrisgroup.com.The Norris Group is a California­based hard money lender

and real estate investment firm.

“I Survived Real Estate” has more than 25 sponsors, including HousingWire, PropertyRadar, the Apartment Owners

Association, InvestCLUB for Women, the San Jose Real Estate Investors Club, Think Realty, the San Diego

Creative Investors Association, MVT Productions, and White House Catering.

For tickets and other information regarding the Oct. 21st event, visit www.isurvivedrealestate.com. Reporters

seeking interviews with Bruce Norris and panel participants before or after the event should contact Aaron Norris at

(646) 418­4437.

Aaron Norris

(646) 418­4437

aaron@thenorrisgroup.com

EXPERTS TO DISCUSS CALIFORNIA'S REAL ESTATE BUBBLE AND DIGITAL DISRUPTION AT CHARITY EVENT BY THE NORRIS GROUP AARON NORRIS

http://rossdiv.com/

http://www.imn.org/mortgagenotes

Skyrocketing Inflation, Rents, and Home Prices

By Rick Tobin

SKYROCKETING INFLATION, RENTS, AND HOME PRICES RICK TOBIN

he National Low Income Housing Coalition (NLICH) released a study on May 25, 2016 which reported

the following absolutely mind­boggling information: “In no state, metropolitan area or county in the

United States can a full­time worker earning the prevailing minimum wage afford a modest

two­bedroom apartment.”

T

This data was based upon the fact that a person

would have a full­time job for at least 40 hours per

week and would spend less than 30% of their

household income on rent and utilities for a modest

apartment unit in the U.S. Per the NLICH, it would be

just about impossible for one full­time worker with a

minimum wage to find a simple one or two­bedroom

apartment.

The same report noted that a full­time worker would

need to earn $20.30 per hour to barely afford an

average quality two­bedroom apartment. This number

is over $5 higher than the average hourly wage of

U.S. renters who earn $15 per hour. To qualify for an

even smaller one­bedroom apartment, a full­time

worker would need to earn $16.25 per hour.

For workers who earn the current federal minimum

wage rate of $7.25 per hour, one would need to work

2.8 full­time jobs (112 hours per week) for all 52

weeks of the year with no vacation days in order to

have sufficient income to qualify for a two­bedroom

apartment. This same tenant would have very little

free time to enjoy life since they would be too busy

working 112 hours per week and probably sleeping

the rest of the time (8 hours per night or 58 hours of

sleep every seven days). There are a grand total of

168 total hours in a week (24 hours x 7 days/week =

168 hours), so this would be a very stressful and

challenging week for most people.

Today’s Skyrocketing Prices in 2016

The Top 5 most expensive states for tenants to

qualify based upon their full­time hourly income rates

are as follows:

• Hawaii, with a two­bedroom housing

wage of $34.22

• California, with a two ­bedroom housing

wage of $28.59

• New York, with a two­bedroom housing

wage of $26.69

• Maryland, with a two­bedroom housing

wage of $26.53

• New Jersey, with a two­bedroom

housing wage of $26.52”

(*Source: http://nlihc.org/press/releases/6845 )

A good example of a pricey California region is

Oakland, California where the average two­bedroom

apartment is $2,100/month. To qualify, a person

would need to earn over $84,000 per year. This

amount is more than double the average actual

income of renters in Oakland today.

SKYROCKETING INFLATION, RENTS, AND HOME PRICES RICK TOBIN

The Top 10 Priciest Housing Regions

Most tenants and homeowners also have food,

energy, clothing, and other expenses in addition to

their housing costs. Let’s take a look below at the

Top 10 most expensive regions in the U.S. as

determined by The Council for Community and

Economic Research when factoring in average

income and expenses:

1. New York (Manhattan)

Average Rent: $3,783/mo.

Can of Coffee: $6.14

Home Price: $1.36 million

Trip to the Beauty Parlor: $68

Dozen Eggs: $2.89

2. New York (Brooklyn)

Average Rent: $2,493/mo.

Can of Coffee: $5.13

Home Price: $990,500

Trip to the Beauty Parlor: $58

Dozen Eggs: $2.61

3. Honolulu, Hawaii

Average Rent: $2,733/mo.

Can of Coffee: $7.32

Home Price: $742,600

Trip to the Beauty Parlor: $52

Dozen Eggs: $3.39

4. San Francisco, Calif.

Average Rent: $2,925/mo.

Can of Coffee: $6.04

Home Price: $820,000

Trip to the Beauty Parlor: $59

Dozen Eggs: $2.86

5. New York (Queens)

Average Rent: $2,390/mo.

Can of Coffee: $5.15

Home Price: $636,000

Trip to the Beauty Parlor: $54

Dozen Eggs: $2.41

6. San Jose, Calif.

Average Rent: $1,738/mo.

Can of Coffee: $6.58

Home Price: $805,000

Trip to the Beauty Parlor: $47

Dozen Eggs: $2.74

7. Hilo, Hawaii

Average Rent: $928/mo.

Can of Coffee: $6.16

Home Price: $488,500

Trip to the Beauty Parlor: $26

Dozen Eggs: $3.73

SKYROCKETING INFLATION, RENTS, AND HOME PRICES RICK TOBIN

8. Stamford, Conn.

Average Rent: $2,109/mo.

Can of Coffee: $5.18

Home Price: $598,000

Trip to the Beauty Parlor: $55

Dozen Eggs: $2.10

9. Orange County, Calif.

Average Rent: $1,778/mo.

Can of Coffee: $5.33

Home Price: $721,000

Trip to the Beauty Parlor: $60

Dozen Eggs: $2.19

10. Washington D.C.

Average Rent: $1,960/mo.

Can of Coffee: $4.93

Home Price: $767,000

Trip to the Beauty Parlor: $51

Dozen Eggs: $2.36

(*Source above: The Council For Community And

Economic Research Cost of Living Index ­

http://coli.org/ )

Falling Rates & Increasing Home Prices

In 2014, real California household income dropped

by 2% from the previous year. Yet, home prices in

the Los Angeles and Orange County skyrocketed by

20% between 2013 and 2014. While Los Angeles

and Orange County, California are two of the most

expensive regions, there were several other housing

markets which also experienced 10% to 20%+

annual home appreciation price trends in spite of

stagnant or falling jobs and income numbers.

How is this possible? ANSWER: The combination of

near record low mortgage rates and fewer places to

buy or lease are boosting demand, sales prices, and

monthly lease payments.

(Source: Federal Reserve Economic Data – St. Louis Fed: https://fred.stlouisfed.org/ )

SKYROCKETING INFLATION, RENTS, AND HOME PRICES RICK TOBIN

The financial chart above from the St. Louis Fed’s Federal Reserve Economic Data team helps to simplify how

California home prices widely fluctuated from positive to negative during corresponding national and global

“boom and bust cycles” such as Black Monday (October 19, 1987) when the Dow Jones lost over 22% of its

overall market value in just one day, the Savings and Loan Crisis (1980s to mid­1990s), the

Telecommunications and Dot­Com Busts (near 2000), The Credit Crisis (August 2007 onward), and the Federal

Reserve’s almost eight plus years of pushing bailout programs like Quantitative Easing (or “create money out of

thin air to buy up stocks, bonds, and mortgages so that asset prices increase and interest rates decline to

record low levels”). Amazingly, incomes in California and the U.S. have been relatively flat over the past few

decades.

The housing market effectively last peaked at a market high in 2006 in many parts of the U.S. While there are

some regions of the U.S. today with even higher peak median home prices such as in prime coastal or

metropolitan regions, the vast majority of home prices are either right near or still below their last market price

peak a full decade ago in 2006.

Dating back to the official start of “The Credit Crisis” in August 2007, anywhere between an estimated seven to

10 million American families lost their homes due to foreclosure, per various wide ranging housing reports.

Upwards of one million California households alone reportedly lost their homes over the past decade to

foreclosure. Between 2005 and 2016, the number of new renter households increased by over nine

million; this increased demand for rental units also pushed rental prices upward dramatically during the

past decade.

The Cost of Living 20 Years Ago in 1996

20 years ago, the numbers were significantly more reasonable than today and a decade ago (2006):

* Annual Inflation Rate: 2.93%

* The Year End Close for the Dow Jones: 6,448

* Average New Home Price: $118,200

* Average Monthly Rent Nationwide: $554

* A Gallon of Gas: $1.22

* U.S. Postage Stamp: 32 cents

* Average Car Price: $16,300

* Minimum Wage: $5.15

(*Source above: www.thepeoplehistory.com/1996.html )

SKYROCKETING INFLATION, RENTS, AND HOME PRICES RICK TOBIN

2006

One of the most basic theories of economics is Supply and Demand. The more consumers who demand an asset

like a home or apartment, the more likely that the asset will increase in price. Conversely, falling demand for a

product, service, or asset will likely lead to falling prices.

If you want to create wealth while staying ahead of skyrocketing inflation, buying real estate has historically proven

to be an exceptional strategy. Real estate works hard creating new wealth for owners by riding the “inflation wave”

instead of us working too hard just to make ends meet.

Rick Tobin

Look for Rick's ebook on Amazon Kindle: The Credit Crisis Deals: Finding America's Best Real

Estate Bargains.

Rick Tobin has a diversified background in both the Real Estate and Securities fields for the past

25+ years. He has held seven (7) different Real Estate and Securities brokerage licenses to date.

Rick has an extensive background in the financing of residential and commercial properties around the U.S with debt,

equity, and mezzanine money. His funding sources have included banks, life insurance companies, REITs (Real Estate

Investment Trusts), Equity Funds, and foreign money sources.

You can visit Rick Tobin at http://www.realloans.com/

SKYROCKETING INFLATION, RENTS, AND HOME PRICES RICK TOBIN

http://realty411expo.com/

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REI Wealth MonthlyEARNINGS DISCLAIMER

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