Realty411 Part 1 - Featuring Terica Kindred

411 www.realty411guide.com | Vol. 4 • No. 2 • 2012 A Resource Guide for Investors

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TERICA KINDREDFounder & CEO of

From Local to Global Learn to Invest Outside Your

Backyard to Accelerate Cashflow

FREE EXPOSURE FOR YOURSELF AND YOUR LISTINGS

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The FUTURE of The Real Estate

Industry

Global Online Real Estate Marketplace

Live Bidding Auctions

Listing Style Property Offerings

Fully Functional Social Network Designed to Get

Exposure for Real Estate Professionals

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yourself to potential clients!

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Realty411guide/reWealthmag is published in Santa Barbara County by Manifest Media Partners © Copyright 2007-2011. All Rights Reserved. Reproduction without permission is strictly prohibited. The opinions expressed by writers and columnists are not endorsed by the publishers. DISCLOSURE: Publishers are not responsible for performing due diligence on the opportunities offered by advertisers. Before investing in real estate, seek the advisement of a trusted financial adviser, attorney or tax consultant. Real estate investing is risky and could result in loss of capital.

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The FUTURE of The Real Estate

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Global Online Real Estate Marketplace

Live Bidding Auctions

Listing Style Property Offerings

Fully Functional Social Network Designed to Get

Exposure for Real Estate Professionals

FREE to post listings

FREE to bid on assets

FREE to become a listed service provider and market

yourself to potential clients!

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Property Partners1.com SaveMyRetirementToday.com

Property Partners IINVESTORS WANT:3 High Returns3 Hassle Free Guaranteed Expenses 3 Predictable & Reliable Income and Investment Outcome

THIS IS OUR MISSIONWe find, rehab, rent, manage and GUARANTEE the proper es for you in our markets with our in-house staff handling all aspects of the business

Chris Dannenfeldt

If you’re looking for a balanced, appropriate and suitable real estate investment for your porfolio, Chris Dannenfeldt understands how to help you get there.

214-447-7304 (office) 972-693-2140 (cell)214-447-7306 (Asst. Theresa Scalise) 972-692-5448 (fax)

J.C. Dannenfeldt Financial Mgt., LLC/Property Partners 1, LLC: 5015 Addison Circle, #502, Addison, TX 75001


contents 6 Ready to Buy Differently with HomeUnion? 9 Spring Has Sprung, but Has the Market?10 Realty Auctions with RealBay.com14 From Local to Global: An Investor’s Journey17 Retire in Style with Property Partners 118 Find Real Deals in Just Four Simple Steps19 Kaaren explains How to Control Your Retirement20 Lease-Option Deals with Black Belt Investors22 Learn About the Rental Property Analyzer23 Bill Gatten Shares His Wisdom 24 Note Buying Made Easy with Asset Ventures26 Buy, Hold & Rent in Cleveland with Sean Whalen28 Investing in Dallas with Tom Wilson30 Is It Honest to Use a Land Trust?31 WhiteRock Capital Creates Wealth in CA & AZ32 Premier Equity Group Offers Twice the Cashflow33 Is Flipping Property Good for Your Wealth?34 Market Spotlight: Discover San Antonio, TX36 Is the Phoenix Market Starting a Recovery?37 Sam Sadat Dishes Words of Wisdom38 Going Global to Meet Investor Demand41 Diversify Your Portfolio with Stocks44 How Hard is Your Money Working?

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Property Partners IINVESTORS WANT:3 High Returns3 Hassle Free Guaranteed Expenses 3 Predictable & Reliable Income and Investment Outcome

THIS IS OUR MISSIONWe find, rehab, rent, manage and GUARANTEE the proper es for you in our markets with our in-house staff handling all aspects of the business

Chris Dannenfeldt

If you’re looking for a balanced, appropriate and suitable real estate investment for your porfolio, Chris Dannenfeldt understands how to help you get there.

214-447-7304 (office) 972-693-2140 (cell)214-447-7306 (Asst. Theresa Scalise) 972-692-5448 (fax)

J.C. Dannenfeldt Financial Mgt., LLC/Property Partners 1, LLC: 5015 Addison Circle, #502, Addison, TX 75001

Question: What makes HomeUnion dif-ferent in the cashflow real estate invest-ment market?Answer: HomeUnion is a platform to re-duce the risk of remote out of state real es-tate investments. We study markets, iden-tify cashflow zones and quality providers in that area.

The turn-key providers are put through a stringent certification process with six-sigma approach before their properties are made available to our investors. Our goal is to establish single family real estate as a legitimate alternate investment class.

Q: Do you have specific markets you pre-fer over others? And, how do you know where to invest?A: We have a proprietary analysis process for every market. At a macro level we look at employment rates, employer diversity, population growth, and a number of other city and economy factors. At a micro level we look at neighborhoods and properties within an “investment zone”. These prop-erties are typically to the left of the mean prices in the bell curve but not at the tail. It is an optimum balance between high rent to price ratios and risk. We have six markets nationally that are on our platform

Q: Does your company manage the prop-erty for clients?A: Our providers manage the properties, we provide oversight and continued diligence

on provider performance. We also provide consolidated portfolio reporting for clients that have bought properties in multiple lo-cations. Clients will also receive ongoing important economic information on the zones where they have invested.

Q: Have you been investing in real estate for a while?A: The founders have been involved in many facets of the real estate market for over a decade. Founders come with an ex-tensive background in mortgage, real es-tate, investment banking, process manage-ment, and technology. Our unique value proposition lies in the quality of due dili-gence that we perform in the selected in-vestment zones and the turnkey providers in our investment property market place. We are able to share some of the best prac-tices across multiple investment zones and improve overall quality.

Q: Tell us a bit about the people behind HomeUnion Services?A: The founders are engineers, MBAs — serial entrepreneurs with a track record of building and scaling successful companies. This is their third company in the real es-tate space. The goal is to bring profession-alism, trust, and transparency to the single-family real estate investment space. Our primary investor is Soma Enterprises, an $800 million global infrastructure develop-ment company.

Q: What are some challenges to providing investors with great cashflow properties?A: The challenges lie in selecting the right partners in the markets that we like. We place a high bar on the prop-erty providers. They need to have a critical size, i.e manage several hun-dred properties, credible property management metrics, good financial

strength and impeccable investor ref-erences. The market is full of real estate gurus that peddle great properties and then disappear into the sunset. The investor is left holding the bag with a less than ade-quate local manager.

Q: What type of financing is available for your deals?A: There are preferred Fannie Mae lenders in every market. In addition there are sev-eral non-recourse lenders that will lend to IRAs or international investors.

Q: What is the first step to get started?Investors can register online at www.home unionservices.com or call (866) 732-3220. We have customer service professionals who work with investors to help them build the right real estate portfolio.

Q: Do you have any advice for new in-vestors starting out?In the market investors can either be day traders and stock pickers or invest with a well-rated mutual fund or money manager. For most people it makes more sense to take the latter strategy. In the real estate in-vestment business this means working with a trusted company that has done the due diligence for them so they can reduce the

Remote Investing with HomeUnion


HomeUnion Services is a unique investment platform pro-viding high income single-family cash flow homes na-tionally for real estate investors. The company brings

together a network of property providers who have an excellent track record and are certified through an extensive due diligence process. HomeUnion Services offer tenanted properties and they stay on as property managers after the purchase. This ensures a single point of accountability and significantly reduces risk for out of state investors. In addition, rent and maintenance guar-antees are available on homes in some markets. HomeUnion pro-vides post-purchase market intelligence, portfolio analysis, and management oversight for investors. Single family real estate is rapidly evolving as a le-gitimate asset class, yet it still does not enjoy the abundance of decision support data that surrounds other asset classes. Their goal is to bring legitimate analysis and transparency to the investment process. We recently interviewed Ravi Renduchintala, a partner with HomeUnion Services, to learn more about their due diligence process.

Continued on pg. 45

Ravi RenduchintalaPartner, HomeUnion Services

Remote Investing with HomeUnion

Spring has Sprung

One of the repeated questions I have been asked is, “Is it time

to buy real estate and if so, where?”

In Silicon Valley there is a lot of talk about how the economy is recovering, rents are up, unemployment is down and everyone is ex-cited about the financial uptick expected with the F a c e b o o k I P O . Northern Califor-nia real estate inves-tors that have been sitting on the sideline are wondering, is this the right time to buy? My answer is a resounding YES! And that has been my same an-swer even through the darkest of times.

For most passive investors, real estate investing should not be a onetime event timed perfectly like a game show contestant trying to leap onto a moving object or face landing in the muck. We saw what hap-pened when families bet their financial future on apprecia-tion and many are still living with the wounds today.

Instead, investing in real estate ought to be a long term plan of buying cash-flow prop-erties in several markets over a several year period. This simple risk mitigation tech-nique may not bring you the highest returns, but will allow you to sleep at night knowing you have cost averaged your purchases. It’s taking investing step-by-step instead of making one giant leap.

The point I want to make clear is that American real es-tate has been on clearance over

the past four years and if you haven’t been buying when it was on sale, don’t wait too much longer because the prices will be going up. The rule of buy low and sell high still ex-

ists. And the unfortunate truth is that the only way you

know you are at the bottom is when you have past the bottom and

you are looking back.

Now to the second part of

the most commonly asked question, “Where should I buy?” That depends! Really, what you need to do is plan your exit before entering the real es-tate market. You need to know how long you plan to hold the properties. Are you buying for cash flow and wealth building? Or do you need to be more ac-tive in real estate right now to replace your daytime job?

I typically tell people that they should invest in two-to-three growing metropolitan areas that are geographically diverse from each other. For example, don’t buy in three California cities, but rather if you can find cash flow in California, pick one city in California and also purchase someplace different like At-lanta. Having your investments in different major metropolitan markets will reduce the risk of your losses due to local eco-nomic failures. When I look into a new investment market, I analyze and look for seven key success factors: 1. Strong De-mographic Growth, 2. Strong and Diverse Economy Sectors,

but has the real estate market?by Lori Greymont


Continued on pg. 42

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Real estate professionals flood to RealBay.com for its Spring 2012 launch, and the silent buzz begins.

RealBay.com is a unique real estate online marketplace, which has arrived to serve as a revolutionary platform in which its members can not only market their real estate listings, but also market themselves as real estate professionals and real estate service providers.

The company just signed industry gi-ant Trulia as a marketing sponsor. Trulia will help drive traffic to RealBay.com by promoting their launch to their millions of members.

“We anticipate about 40,000 members within the first few months of our launch based on all of our strategic partnerships,” says Stephan Piscano, RealBay.com CEO and co-founder.

We recently sat down with Piscano to get an inside look at how RealBay.com came to be and what void it will fill in the current marketplace.

Upon review, www.RealBay.com will serve as an online marketplace in which its members both “RE Pros” and “Everyday Joes” can list their properties on the site for sale in the form of live bidding auc-tions or listing-style property offerings. There are currently a few competitors out there offering RE auction services online but none of them that we have found offer the ability to connect in a social network setting while doing so.

“One of the goals we had here was to try to really bring the entire experience of buying a home online, not only with the research process as you can do on Real tor.com and others, but to actually allow you to make a buying decision and buying ac-tion, all from the comfort of your home, and do it all for free,” Piscano explains.

“I feel like everything that I have done throughout my life and in real estate was to bring me to a point in which we could

create this,” he adds.Piscano manages an investment fund

based in Napa Valley, Calif., he first got interested in online real estate in the sum-mer of 2008 when he began seeing aston-ishingly cheap properties in Detroit, MI, selling on eBay of all places for as little as $2,500 or less.

This was at the height of the market crash and Piscano was greatly intrigued.

“I nearly purchased several of those cheap homes I saw on eBay, but I said to myself, if they are selling them online that cheap they must be buying them some-where else even cheaper”.

Piscano, from the other side of the coun-try, began cold calling asset managers and listing agents in Detroit on nearly a daily

basis trying to round up inventory to pur-chase and then liquidate instantly online. He purchased his first home for $600 (a duplex) and sold it less than a week later on eBay for $6,900, and after that, he was off to the races.

These experiences were condensed into a short two-year period that yielded consis-tent results of success and profits.

From 2008 to January 2011, Piscano es-timates he engaged in more than 250 online real estate transactions, most of which be-ing through eBay. Throughout this process Piscano realized the many gapping holes that were in eBay’s system, as it related to real estate. On Ebay they had ramped fraudulent bidding activity. Bidders would bid properties up, win the auction and then

RealBay.com Set to Launch this Spring!

Article by Bonnie LasloEleakis & Elder Photography

Stephan Piscano, CEO/co-founder of RealBay.com


never pay and never be heard from again. One could report these members to eBay, and they would issue a non-paid item strike to that bidder, but they would not refund any fees to the seller. So the investor would be out $100 to $150 for the listing. Also, eBay had problems with fraudulent sellers auctioning off properties they did not even own. Because the cheaper homes were typically sold via quit claim deed, it would be months before victims realized that they had paid through Paypal for something that they did not actually own. By then, they typically could not track down the criminal that had sold it to them.

All of that mistrust created a market-place that by 2011 was hurting the overall industry, as well as the properties.

Piscano envisioned a web site that had verified ownership of all properties sold, verified bidders in which if you had a fraudulent bidder on the site, you could auction that same property again for free in confidence — basically Piscano wanted a site where real buyers and real sellers could connect with trust and have it all take place online — from this desire RealBay has been born.

Piscano searched other competing sites and actually had some of them contact him allowing him to list on their sites com-pletely for free just to get the inventory. He found that none of them, in his opinion, “Got It”.

“The competing sites are all charging a percentage of the transaction after the fact — Either with a buyer’s penalty (premium) or acting as the list agent and trying to pocket more money from the seller — That creates a negative scenario for all the users of those sites, which hurts all the members in my opinion — At RealBay it is always free to bid, no buyers penalties or premi-ums, and our sellers never pay fees after the transaction it is simply free that is it!”

Piscano and his partners believe that this strategy of nearly making the entire mar-ketplace free will create exceptional moral in which more transactions will take place at higher rates as well.

Piscano working with his trusted busi-ness partners, Patrick Madison and Reece

Madison began to craft the details of the site while he set up meetings with the top web site designers in Silicon Valley to de-sign what would become in their minds “The Future of the Real Estate Industry”.

“There is no other website out there like this,” stated Piscano.

The website includes features necessary to change the way real estate professionals do business online over night. Some of the most notable functionalities are:

•Real Estate auc-tions with live bid-ding, like eBay. The auction can be set at different timelines, and buyers can con-tact sellers in real time to get critical information about the properties.

• O p e n s o c i a l networking, l ike Facebook, allow-ing members and RE pros to market themselves to po-tential partners and clients.

•Professional networking exposure like LinkedIn allowing members to have con-nections, receive recommendations, and truly market themselves as well as their listings online.

•Multiple video tutorials for speed and ease of understanding. The markets are al-ways changing and education is key. The resources are available for learning. Topics will include what other investors in your area are doing to learn what is working and what is not. Trends are different and local-ized to specific areas.

•Allows users to search real estate ser-vice providers in the specific target crite-ria.

“In effect we want to be seen as a one-stop-shop to meet all your real estate needs online allowing members to not only mar-ket their listings but market themselves as real estate pros,” Piscano says.

A survey was conducted among real es-tate professionals about their opinions on

which facets of the website caught most of their attention. According to real estate in-vestor Patrick O’Donnell, his top five are listed below:1. Free membership to bid on property and no buyer fees.2. Beginning property inventory of 4,000 providing buyer variety.3. No cost for business professionals to market themselves through the social network.

4. Low-cost auctions starting at ap-proximately $5 per property.5. Access to local resources, service pro-viders, auction, and social atmosphere all in one place. In addition, auction winners are provided with a list of local product and service pro-viders in the local area at no charge. This proves to be an excellent retention feature as the buyer and/or investor most likely will be in need of a contractor, agent, or general service providers in the area. The time saved in researching this information is also money kept in the buyer’s pocket. Piscano notes that nearly 100% of the buy-ers who buy cheaper online real estate are outside of the state that they purchased the subject property, making this need very dramatic. The buyers looking for invest-ments and/or assets will be able to search using detailed search fields like location,

“In effect we want to be seen as a one-stop-shop to meet all your real estate needs online, allowing members to not only

market their listings but market themselves as real estate pros.”

Continued on pg. 42

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Terica teaches how to Invest Out of StateFrom Local to Global

Terica: Yes, I grew up in a real estate family, so I always knew I was going to end up in real estate. I was looking at a triplex [in my original deal] and all I had was an ‘offer letter’ from Deloitte, the company I worked for before I went out on my own. They wouldn’t take my ‘offer letter,’ but at Sun Trust they would, and that’s when I bought the property. And it was a lot cheaper and I got more bang for my buck. That’s when I realized that, although my father — who’s been in real estate for over 40 years — he usually does a lot of investing in his own back yard; for me it was

a little different. Although I was working in LA, I thought that I might as well leverage my income and buy something bigger and better and cheaper outside of California. And so, I invested in properties in Atlanta and also in Texas. That’s how the business was built. It started in 2006. A couple of friends from Deloitte wanted me to help them out and teach them how to invest. It started from a network of friends, family and acquaintances. I remember the day I got my first client that I didn’t know and now the majority of them are unkown. We have a waiting list for all of our properties and there’s a new program we’ve just cre-ated that I think is noteworthy. We have a thing called a VIP Flip program. That started because some clients were saying, “Well Terica, you’re flipping the deal. How do I become YOU in the transaction?” So I created a program where my clients and I joint venture together. We buy, fix and flip houses to fussy housewives of Atlanta.

The average out-of-pocket for my VIP

Don’t be deceived by Terica Kin-dred’s youth, inside lies an expe-rienced investor with millions of

dollars worth of deals under her belt. Her first transaction, at age 19, was based in At-lanta, GA. By the time Terica turned 24, she was a self-made real estate millionaire.

A native of Southern California, Terica understands the needs of long-distance in-vestors who choose to do deals far away due to economics. She started purchasing out of state and managing long-distance flips her-self while still living in Los Angeles. Terica has purchased, renovated and sold proper-ties throughout California, Alabama, North Carolina, Texas, Tennessee, Georgia, Mis-souri and Indianapolis.

Her company Out Estate Investments, is a full-service firm offering multiple prod-ucts, including her popular Zero Money Investments. “It’s basically a ‘no money down’ investment program where we help investment buyers acquire houses,” she ex-plains. Terica adds: “The program incorpo-

rates a rent-to-own strategy, where the type of people we put in [the homes] want to buy the property for the future. They usu-ally have bad credit, so we enroll them in a credit repair program.”

One of the advantages to this program for investors is that they are able to cash out on their deals. Tenants benefit because it’s cheaper to own than to rent in the markets they’re investing in. The deals sold by Out Estate Investments have 25% equity at the close of escrow, which is one of the many advantages to this program.

Recently, Terica moved to Atlanta, the city where her first deal was done. She trav-eled south to zero in on this thriving market. I caught up with Terica recently to discuss her new book, The Global Millionaire, and to learn about her company’s brand new financing option for foreign investors and their VIP Flip Program.

Question: Did you really do your first real estate deal at the age of 19!?


Flip Program is about $25,000. He’s going to be able to do about three deals. The aver-age net profit on those deals is $10,000 in six months. So on those three houses, he’s making $30,000 in six months. So in twelve months he’s making $60,000 dollars. It’s basically what I did personally to get out of Corporate America. And I’m not telling people to get out of Corporate America; but we put you in a position where, if you want to leave, you have residual income that matches your corporate dollars. If you put all of my programs together, I can help anyone — with some money and some credit — get out of the rat race.

Question: You work with clients all over the world. Describe the type of investors who make up your typical client base?Terica: Our typical client is a corporate guy who wants to invest, wants to get out of the rat race, but they don’t have the time to find property. They’re stressed. We help them put together a strategy. We provide private

by Isaac Newkirk III

the end of the day: to wake up every day and know that I’m changing the lives of genera-tions of people. A lot of the tenants that we help are first g e n e r a t i o n home own-e r s . T h a t ’s huge. We’re changing a generation of people and I ’ m r i g h t there on the f ront l ine . In corporate A m e r i c a , there are so many lay-ers of bu-reaucracy and politics that you never really get to see the full impact. I’m able to make decisions myself. I’m able to maintain a high level of integrity and not have to worry about all the things that come with corporate [in-volvement].

Question: The fact that you learned all about real estate from your many family members already involved, how much of an advantage do you consider that?Terica: My dad’s in real estate, all my un-cles and aunts. Back in the early 1900s, my great grandmother built houses on her land in Mobile, AL, and rented them out. My family also owns land that they sell timber and hunting rights to government, investors and other individuals. That’s a big advan-tage because I’m not afraid of the investing scene. I meet a lot of people who are strick-en with fear, that’s why they don’t act. A lot of people who go to seminars, they’re working and they get all excited, but they don’t move. I think the thing that freezes people is fear. I’ve been around investing and entrepreneurship all my life, I’ve never seen my dad go to a 9 to 5 ever. Knowing that helps me not be fearful. I have a higher risk tolerance than most and technology doesn’t scare me.

Question: Do you ever call on family members for advice?Terica: Yes, all the time. I call my dad the most because he’s really good. My dad Continued on pg. 27


financing, property management, tenants, construction, the whole ball of wax. So that way they can sit back and be hands free.

Question: I know the foreign investor market is exploding. Do you assist many foreign investors?Terica: Yes, we do have many international investors. With the foreign buyers, it’s a little different, only because they’re not able to get traditional financing. But they want to invest as well and right now their only option is to put down 100 percent out of pocket. We also have in-house financ-ing resources that allow our investors to put down 40 to 50 percent with an interest-only rate of 5 to 9 percent with an eight-year balloon. This is really popular because it allows dollars to be leveraged. Investors really benefit from being able to get financ-ing that they would not otherwise be able to obtain.

Question: How does the Atlanta market compare with markets in other parts of the country?Terica: I’m partial to Atlanta because our first investment opportunity occurred there. It was a purchase in Snellville [a suburb of Atlanta]. I’ve been investing in this mar-ket now for ten years. I think that Atlanta is one of the best markets in the country: mainly because of all the job opportunities that are available. And so, as an investor, you want to be put in a place where your tenants will stay gainfully employed and also be in a position to purchase if you ever want to liquidate. Also, it’s a lot larger than any other southeast market and, when we look at Atlanta, it’s the entire metropolitan area. And the metroplex has about 5.9 mil-lion people. So it quadruples the opportuni-ty to have access to great inventory as well as polished tenants. It’s a win all around.

Question: What are the biggest advantag-es being in your own business?Terica: Time. Time. Time. At the end of the day, I can go [home] to visit my little doggy and I don’t have to tell anybody about it. I love having the freedom of time. That’s worth its weight in gold. That’s a finite re-source we have. We don’t ever get it back. Having freedom of time is huge. Number two, being able to spend every day doing something I’m passionate about. I’m very passionate about real estate; about making a difference in the communities we serve. Everything we do is socially conscious at

moved out to Atlanta as well. He has a new portfolio, he’s Mr. Southside [of At-

lanta]. Whenever I have any properties on the Southside, I always call him. My uncle, he’s in the Philippines now. He has a hotel out there. He’s involved with owner financ-ing and things like that. Back in Los Angeles, he was telling me about his owner financ-ing program and that’s how I came up with my international program.

Question: I can’t let you get away without telling us about your book that’s coming out.Terica: The book is all about not being in your back yard. My dad and I, we’ve had so many fights about this topic. He’s what I call ‘old school.’ And ‘old school’ tells you, do what you can see and

nothing else. What I’ve learned is that you can definitely make some huge profits going outside of your comfort zone, going outside of your back yard. If you live in California, not being afraid to go and invest in Atlanta. I teach people all about that. I’ve also started businesses on five different continents, so I have significant experience on entrepreneurship in general, not just here in the states.

Question: How would you advise a new investor to go about getting into this busi-ness?Terica: I would say step one, get educat-ed. Knowledge is power. Read some good books. If you don’t have access to those tools, there are seminars out there, boot-camps, etc. At least get your feet wet. Join an investment club, where there are other investors around. And, without sounding biased, call me. We’re a one-stop shop. Contact us at 866.488.1820 or online at OutEstate.com and what we’ll do, for free, is look at your circumstance, look at your goals and put together a comprehensive strategy just for you. And you can learn as we do it for you. But I wouldn’t recom-mend you go out there and just do it. I had tons of support, I grew up in real estate and I still lost over a half million dollars. I’ve lost big. So the education I have right now cost me a great deal of money.

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Retire In Style, Here’s How

Dannenfeldt, based out of Dallas, anchors the retirement funds or other cash assets on behalf of his clients into the purchase of residential real estate. The potential an-nual return on investment is 12 to 16 per-cent.

As of February 2012, occupancy rates for about 8,500 houses managed through Property Partners I are 97.4 percent. The company also manages about 32,000 mort-gage notes with a default rate of about .4 percent.

A typical Property Partners I client is between the ages of 45 to 65, earning a six-figure income, has at least $100,000 in investable assets and is not an experienced real estate investor.

“They are people that have been used to doing the traditional things like stocks, bonds, and mutual funds,” Dannenfeldt said. “And they’re dissatisfied with their returns. They are tired of taking losses. They’re worried about what they’re going to do for retirement.”

Unlike many of his competitors, Dan-nenfeldt’s company also takes an active role in the management and maintenance of clients’ real estate investments. Repre-sentatives handle payment of taxes, insur-ance, repairs and any problems that may require the eviction of a tenant. This lit-erally creates monthly passive income for investors.

Property Partners I purchases mainte-nance contracts and weaves the cost into their clients’ initial investment. Using maintenance contracts can save thousands of dollars in one transaction, Dannenfeldt said. A roof for which a general contractor would charge an independent real estate investor $3,500 costs Property Partners I about $700 through its maintenance con-tracts.

“[Clients] will not ever get any kind of phone call ever on, ‘You owe me money

for maintenance,” Dannenfeldt sa id . “And we do all that work with our own in-house employ-ees.” The firm also mitigates vacancy risks for its investors through an income r e n t a l g u a r a n t e e . Investors can use a modest portion of their monthly profits to purchase the guar-antee. This step will keep the monthly rev-enues coming even if the property becomes vacant due to a renter moving on or being evicted.

Property Partners I representatives work with qualified attorneys who can help in-vestors legally shift their assets. The law-yers also help clients create the corporate structures necessary to limit their financial liability in the event that a tenant or visi-tor to the owned property is injured or has another type of legal claim.

The company protects its investors as well as its reputation by conducting a thor-ough financial analysis before working with a client. Dannenfeldt wants to ensure that each investor has reserve accounts of liquid assets in case of unexpected job loss or another financial emergency before he invests into purchasing real estate. Like-wise, Property Partners I strongly encour-ages potential clients to use existing assets such as retirement accounts rather than borrowing money to invest. Some excep-tions apply, such as for investors who have at millions in assets and wish to take on some debt to purchase multiple properties rather than use up all cash reserves.

“As a corporate decision, in today’s economic circumstances I am opposed to

debt,” Dannenfeldt said. “So I would rath-er someone purchase one property for cash instead of three properties with debt.”

Dannenfeldt encourages clients to think of buying real estate that they do not intend to live in as a business.

“For example, people buy a franchise

like a McDonald’s,” Dannenfeldt said. “And they don’t buy McDonald’s because they want to buy the hamburgers. They buy McDonald’s because there is a sys-tem in place to produce results, which is income to them.”

Property Partners I representatives thor-oughly study the demographics of each market before setting up investors with properties in the region. Their goal is to be-come the number one provider of safe and well-maintained low-income rental hous-ing in each market they target, without get-ting involved with government-subsidized programs such as Section 8.

“Over the last three years, we’ve com-pletely phased out of Section 8,” Dannen-feldt said. “The reason being that we have seen across the country some really dra-matic cuts in funding that people qualify for because of the cutback of funding in those programs. So before that had become an issue, we had already started phasing out.”

Once someone begins renting a home managed by Property Partners I, they typi-cally stay in that residence or move to an-

In a down economy, buying a property for investment purposes and renting it out to a tenant might seem a risky proposition. But Chris Dannenfeldt and his team at Property Partners I are helping people

across the country create passive income through residential invest-ments and literally “save their retirement.”

by Stephanie Mojica

Continued on pg. 25

Chris Dannenfeldt

Yes, YOU can do dealseven if you have no money,credit or experience.

Got your a t t e n -t i o n ? The title of this

article works because it’s what investors are always seeking, but not only are they seeking

“real deals,” they are always in search of new ways of find-ing them. Before finding a real deal, however, one must know what a real deal is. Seems logi-cal, but it’s a basic principle of real estate investing that’s frequently underrated, or flat-out ignored and overlooked by novice and experienced inves-tors, alike.

A real deal is very specific.

It’s specific to YOU. A “real deal” defined is a property that meets your criteria and a seller that meets your terms. Any-thing outside

of that is not a real deal. There are two parts to what consti-tutes a real deal. First, what’s your criteria for an investment property? Is your investing in-tention “cash” or “cashflow?” Being clear about your inten-tion can significantly impact the price and terms of your deal. Once your intention is es-tablished, what type of proper-ty will create your intention? In

what area(s) are you willing to look for this type of property? And what price range are you willing to consider? Knowing your property criteria is first.

Second, what are the mini-mum terms you’re willing to consider? If your intention is to create cash through short-term strategies such as wholesal-ing or “fixing and flipping,” is

a 20% return on your invest-ment in 90 days your minimum terms? Or, is it $20,000? Or, is it 20% of market value? If you’re intention is to create cashflow through lease options or “buy and hold,” is $200 of net cash-flow per door your minimum? Or is it a 20% overall cash-on-cash return? Knowing your minimum terms completes your criteria of a real deal.

You get to choose. Nobody has any say in your criteria, but you. A deal for me might not be a deal for you, and vice versa. A real deal defined is a property that meets YOUR criteria and a seller that meets YOUR terms. It seems counterintuitive to most, but the more narrow the focus of your criteria, the more real deals you will find. Once you know your criteria and your terms, you can begin your search for real deals.

Locating properties that meet your criteria is the easy part. Locating property owners willing to sell to you on your terms is the hard part, and lo-cating these property owners is key to creating wealth in real estate. There’s only one way to find property owners willing to sell their property to you on your terms, and that is to mount an ongoing search to seek them out. Finding such owners is not for the weak-willed person who gives up at the first experi-ence of resistance, by the way. Successful deal finders pos-

sess determination, persistence, timing and an extraordinary willingness to work hard. Hav-ing said that, here’s how to find real deals in 4 simple (I didn’t say easy) steps:Step 1 - Establish your prop-erty criteria and the mini-mum terms you’re willing to accept. You should’ve done this already. If not, read this

article from the beginning and follow the instructions in para-graphs two and three before continuing to...Step 2 - Identify property owners that need to sell, as opposed to those that want to sell. The center of every real deal is in the owner’s motiva-tion to sell. No motivation? No deal. “Want” is not moti-vation. “Need” is motivation. Motivated sellers can be found just about anywhere, however, your greatest likelihood of lo-cating clusters of motivated sellers will be through notice of default (NOD) records, pro-bate records, expired listings, inheritance records and out-of-state owners (absentees). Convenient resources for these records can be found at www.EpicProDownloads.com Step 3 - Keep your name, contact information and a consistent message in front of these property owners. Avoid the games and gimmicks that many real estate investors play. Advertise only what it is that you do.

•Immediate debt relief.•No commissions.•No repairs required.•Close fast.

Be straight with people. Tell them what you’ll do, then do it. It’s appreciated.

As previously mentioned,

Find Real Deals in 4 Simple Steps

Continued on pg. 27

by Matt Theriault

One of the first questions you will be asked when invest-ing is: Do you have an IRA or 401(k)?

If the answer is yes, then the next question is: So who decides where your money gets invested?

The answer should be you. Many do not realize that there is a way to have control over your own retirement funds.

It has been available for years, but very few people know about it or understand it. We know you’re not one of those individu-als, or at least in the next 10 minutes will not be fully in the dark on this interesting subject. IRA owners after reading this ar-ticle will find value in the knowledge and resources to empower them with a wealth-building tool.

In today’s financial environment, the knowledge can be worth thousands to mil-lions of dollars for a normal household family. It is a newfound business skill for thousands, or at least a topic worth discuss-ing with a professional in the future.

Many business owners and real estate investors have created profitable busi-nesses, especially in today’s market. After researching the information, we will show you how to get started in a matter of min-utes.

So here are the basics: You must open or have an IRA account

(Individual Retirement Account). There are two main ones to choose from

Traditional or Roth. With a Traditional, you take the tax deduction when you put money in, and pay taxes when you pull money out. The Roth is the opposite; taxes are taken when money is contributed, but it is tax free when pulling the money out. The Roth IRA is a very powerful account to have because one can use, for example, $100 to invest, and if those funds create a large profit, no taxes are paid on it.

Individuals can transition current IRA accounts to a self-directed IRA custodian. A new account can also be opened. Kaaren Hall is the president and founder of uDi-

rect IRA Services LLC. She is an expert in the field and has a high priority on educa-tion. This is a good aspect for a custodian to have, as being able to communicate and ed-ucate a client on how to use their accounts is the most important part of having a self directed IRA. A person has to understand the rules and having an educated custodian to hand hold you through the process. This is not only necessary, but it is a must. Then you research and find assets, projects, and/or companies to invest in to grow the funds. Many people purchase real estate, give pri-vate mortgages, buy precious metals, buy companies, etc., as some of the investment projects.

Hall states, “Remember you are the one making all the decisions, you’re the advi-sor, and it’s not on someone else’s shoul-ders. The Securities Exchange Commis-sion (SEC) promotes public awareness on letting the public know to be careful, and what type of recourse is available. So in our welcome packages we supply helpful information, and also educational links on our website.”

Final step, when you decide on where to place your funds, review your intentions with your custodian to ensure it qualifies and all rules are being followed. This is the most important step, and it’s wise to have a set of expert eyes looking over your intended investment. These companies are in place to answer questions and to guide you along for proper uses to keep your self-directed IRA in compliance.

“Anyone can visit www.IRS.gov pub 590, which talks about IRA guidelines and goes over the rules,” according to Hall.

After reviewing www.uDirectIRA.com, any individual can go to this resource loca-tion for free information. There are many advantages for the public to convert their existing IRA accounts to self-directed, and many people already have.

“Because a self-directed IRA lets you in-vest in anything (except life insurance and collectibles), there are hundreds of possi-bilities,” states Hall.

With a background of over 16 years of real estate experience, Kaaren Hall has as-

sisted her nationwide base of clients for many years.

She is also president and founder of uDi-rect IRA Services LLC, and speaks at many real estate club meetings and events to edu-cate the public on how to use self-directed IRA accounts. She is a sought after expert in the field and has assisted national real estate experts with their own deal structur-ing and accounts. The service and fees are the aspects to consider when choosing a custodian. Having access to the experience and knowledge is the added value with this company.

After many years of building her busi-ness, Hall’s life has gotten much easier now that her children are older. This allots for more time and expansion on educat-ing the public on harnessing the control of their own retirement futures. Hall is a busy mother of two, and she travels throughout California for real estate events.

There are many employees who are no longer at their original job locations and are looking to rollover their 401(k). Some in-dividuals are looking to rollover from their employer plans, and self-directed IRAs are an option for people to become educated on, in order to better their lives and their family finances.

The old saying that knowledge is power is obviously visible now to many, due to Hall’s hard work and sharing of her years of experience with every day people who can benefit from it the most.

Hall confirms, “I am here to enlighten readers about the self direction process in an effort to inspire them to be more proac-tive about their own retirement.”

Visit www.uDirectIRA.com for more infor-mation or to get started.


by Bonnie Laslo

I CAN Control my Retirement Account?

Kaaren Hall

LEASE OPTIONSMake Waves in Real Estate

by Isaac Newkirk III

Sensei Gilliland is a man who be-lieves in diversification. His real estate investment firm, Black Belt Investors (BBI), derives its name

from his first real passion of the martial arts. As a martial arts instructor and owner of several martial arts schools, he puts in some very full days managing his real es-tate investment opportunities. Originally involved in the rehabbing (flipping) of real estate properties, Black Belt Investors has over the last decade also developed an af-finity for lease option properties.

The lease option plans came into vogue because so many people desirous of pur-chasing homes were finding great difficulty in qualifying for loans. Lease options, at a minimum, gives potential sellers an oppor-tunity to get a retail price for their property and an enhanced monthly cash flow. In a lease option, a property owner and tenant agree that, at the end of a specified rental period, the renter has the option of purchas-ing the property, but not the obligation to do so. It is the ‘obligation’ at the end of the agreement that makes the lease option dif-ferent from the lease purchase, where the renter is required to follow through with the purchase.

Lease options can provide tremendous advantages for both buyers and sellers.

bringing in larger gross rents compared to other landlords in the neighborhood.

There is a big difference in the way the deposit and the rent premium are viewed by sellers and buyers. The buyers are think-ing in terms of their future home, and con-sider these items as equity. The sellers are considering these items as sort of a hedge against default, a guarantee that the deal will go through because if it doesn’t, the payments will be retained as income. This is what makes the lease option deal a win-ner all around.

There are various market conditions that dictate the proper time to sell using the lease option process. If the market is ac-tive (there is a big demand for sales) and the prospective buyers understand and ap-preciate the value of home ownership, but just can’t do it on their own, lease options are a valuable alternative. Slow markets can mean either the re-sale market has de-creased significantly or there is a difficulty in the acquisition of lender financing. In this case, if an investor wants to sell and increase their ROI (return on investment), the lease option is an excellent strategy. Actually, this strategy is so potent that BBI believes there is no time when its use is not a viable proposition.

BBI helps in the following areas.•They can find and acquire the prop-erty for the client at deep discounts•They can organize contractors and rehab the property if needed•They can use guerilla marketing tactics to find a tenant/buyer

•They can do all the lease option agreement paperwork for the client•They can put their property management component to work taking care of the cli-ent’s asset

Sensei Gilliland considers it to be all in a day’s work, albeit a rather lengthy day’s work. But there’s so much more of the story to be told. Why not drop by www.BlackBeltInvestors.com and begin to get an eyeful for yourself.

Benefits for the buyer include:•You get the opportunity to buy a home when your credit is seriously impaired

(and the opportunity to substantially repair your credit)•You can save up for a down pay-

ment on the home while living in the home (often times the down payment is very low)•A portion of the rent or rental premium is added to become a forced savings •At the end of the option, the tenant is not obligated to purchase the home

Benefits for the seller include:•Collecting rent on the home while it would otherwise be sitting vacant•The opportunity to receive a high pur-chase price•The ability to sell your home instead of just renting it•The opportunity to increase your cash flow and receive a higher rate of return •Having some of the landlord/seller respon-sibilities be assumed by the tenant/buyer•The ability to sell a home in a challenged market (slow re-sale market)

Black Belt Investors are particularly keen on the moneymaking aspects of lease options. Initially, there’s the upfront (and non-refundable) deposit. This is the option fee that represents an agreement (between seller and buyer) to purchase the home at a fixed price at a later date. In most markets, sellers will add a monthly rental pre-mium (non-refundable) to in-crease the investor’s cash flow. This can be applied to the principal balance or to build a down payment (whichever the tenant/buyer prefers). And, of course, there’s the equity from the sale that’s paid at the end of the option period when the home is pur-chased. The landlord/seller has made mon-ey at every stage of the lease option process (the beginning, middle and end). This gives an investor a big advantage over the com-petition: increasing monthly cash flow and


Black Belt Investors, The West’s Top Ranked Resource For Successful Cash and Wealth Building

www.BlackBeltInvestors.comVisit Black Belt Investors at:

The West’s Real Estate Investor’s Club

1 2 R O U N D S

To receive more informa on or to a end, please call

Top Ranked

Offers Its Members:3 Reality Based Education, Training & Coaching to Keep

You in Tip Top Shape3 Exciting Diversi�ed Topics �at Revolve Around Real

Estate and Business Opportunities3 Networking to Help Build Your Team & Sharpen Your

Skills3 A Connection to Keep You Engaged and Motivated3 Discounts From Local and National Businesses to Help

Increase Your Margins3 Support From Black Belt Investors to Assist You 5

Days a Week3 All �is Information at Our Club Meetings and More!

(951) 280-1900If you are out of the area, then no problem! Stay engaged by par cipa ng in our

FREE webinars and teleconferences.

Black Belt Investors is a full-time professional network o�ering its members education, networking, business referrals, consult-ing and exciting cash and wealth building opportunities. Whether you’re a white belt investor just getting started or a black belt investor looking for new resources, we can assist you in reaching your goals.

We Offer Two California Loca ons:Corona/Norco, Riverside County – Meet the 2nd Wednesday of the MonthDowney, Los Angeles County – Meet the 2nd Thursday of the MonthNetworking: 6:30 pm – Mee ng: 7:00-9:00 pm

Black Belt Investors, The West’s Top Ranked Resource For Successful Cash and Wealth Building

www.BlackBeltInvestors.comVisit Black Belt Investors at:

The West’s Real Estate Investor’s Club

1 2 R O U N D S

To receive more informa on or to a end, please call

Top Ranked

Offers Its Members:3 Reality Based Education, Training & Coaching to Keep

You in Tip Top Shape3 Exciting Diversi�ed Topics �at Revolve Around Real

Estate and Business Opportunities3 Networking to Help Build Your Team & Sharpen Your

Skills3 A Connection to Keep You Engaged and Motivated3 Discounts From Local and National Businesses to Help

Increase Your Margins3 Support From Black Belt Investors to Assist You 5

Days a Week3 All �is Information at Our Club Meetings and More!

(951) 280-1900If you are out of the area, then no problem! Stay engaged by par cipa ng in our

FREE webinars and teleconferences.

Black Belt Investors is a full-time professional network o�ering its members education, networking, business referrals, consult-ing and exciting cash and wealth building opportunities. Whether you’re a white belt investor just getting started or a black belt investor looking for new resources, we can assist you in reaching your goals.

We Offer Two California Loca ons:Corona/Norco, Riverside County – Meet the 2nd Wednesday of the MonthDowney, Los Angeles County – Meet the 2nd Thursday of the MonthNetworking: 6:30 pm – Mee ng: 7:00-9:00 pm

by Gary Geist

A few years ago, a young man practiced his craft, day in and day

out. Every chance he got, he was perfecting his technique and approach. Every swing, every club, every shot, under all kinds of conditions; his swing was always the same. His name was Jack Nicklaus, arguably one of the best golf-ers of all time. When you look at his whole career, his best trait was being consis-tent — always finishing at the top. The same trait needs to be the cornerstone of your real es-tate investing career.

So the question is: “How does consistency apply when you are investing in real es-tate?” First and foremost, consistency means you have a well thought out approach you always use to evaluate new deals. This prevents you from forgetting key components or data from your analysis on properties you really like. No matter how long you have been investing in real estate, you must remove your emo-tions from the process (good or bad feelings you have about the property). If possible, each deal must be evaluated on the same baseline (or identical sets of data) so you can do proper comparative analy-sis between properties to find the “best deal”. To do this you need the same approach (or software model) just like the professional golfer’s magic swing.

HomeReplay, LLC has developed an Excel-based analysis program combining over 75 years of real estate investing experience and analysis of thousands of investment properties. Continued on pg. 42

This software tool is easy to use and forces a consistent approach to analyzing each property that enables the investor to have repeatable success in all types of market conditions. Key elements of this approach include — property selection, property evaluation and reporting, cost analysis for long-term investment purposes as well as calculating renovation costs prior to renting the property. Furthermore, the software pro-vides the investor with realistic estimates of the property value in its current condition as well as after repair value, all of which are good data points for comparing multiple

properties prior to purchase.One of the best ways to achieve a stable,

repeatable process for evaluating property is to have a software tool that addresses all of the issues, such as — Which property to buy? How much to pay for this property? What are the repair costs going to be? And what is the expected value after repairs? These questions and more are answered by HomeReplay’s exciting new software product called Rapid Property Analyzer (RPA). This software tool provides a sys-

Powerful Software forAnalyzing Real Estatere

sour

ces

Realty411Guide.com PAGE 22 • 2012 reWEALTHmag.com Realty411Guide.com PAGE 23 • 2012 reWEALTHmag.com

CONTACT USBILL GATTEN CENTERfor Wealth & Education6520 Platt Ave., St. 548West Hills, CA 91307

1 800 409 3444FAX 1 800 967 [email protected]

Bill GattenRenowned AuthorNational Lecturer

& Investor

stant by those who use the law to accomplish nefarious ends. Whether we’ve done anything wrong or not, defending one’s self in court often costs more than losing the case would; and the Prius-driving, apart-ment-dwelling polyester-suit-wearing “Consumer Advocate” knows that his prey (you and I) will likely give-in and settle with him/her for thousands of dollars, at least a third of which goes to him/her, just for stop-ping the (unfortunately) judi-cially-condoned extortion.

Anecdotal to all of this, an action that I was involved in a few years back had to do with a homeowner in Virginia who came to us with a real prob-lem and asked for our help. He needed $96,000 cold-hard cash with which to bring his mortgage current and stop a foreclosure on his $400,000 home in Virginia (he had never made a single payment on his mortgage since its inception two years earlier, and he had thwarted foreclosure by re-peated BK filings). He agreed that for the $96,000 he would gladly equity-share his home with us on a 50/50 basis. He had about $100,000 equity once the loan was brought cur-rent (which we did for him). We all agreed that the $96,000 would be forgiven in exchange for the 50% ownership interest in the property and there would be no monthly premiums paid to us (we assumed we’d make our money on future apprecia-tion). Upon consummating the transaction and giving him (Mr. Williams) a fresh start, he con-tinued his pattern of not mak-

Let’s start this article off right. First of all, take this simple test:

a. Are you in business?b. Do you have employees?c. Do you have a teen-aged driver? d. Do you own property?f. Do you manage real prop-erty?g. Do you drive a car?h. Do you have assets that oth-ers are envious of?i. Are you considered a profes-sional?j. Do you have a steady in-come?

If you answered YES to any of these questions, you are a walk-ing dart board in legal parlance. Americans today are being as-sailed by a group politely re-ferred-to as Contingency-Fee at-torneys, or so-called “Consumer Advocates,” a sweet sounding term perhaps, but a term, which all too often means, “Let’s find someone who is innocent and sue him anyway until he runs out of money and has to pay us to stop suing him.”

In my not-all-that-humble opinion, the American legal sys-tem is out of control now a days and the Average Joe has to be more protective and proactive now than ever before. The com-mon hard-working American citizen must remain constantly on the alert relative to protecting his hard-earned assets for those who spend large portions of their lives and their parents’ money in the study of Juris Prudence.

We non-attorney types all spend our lifetimes trying to acquire money and other assets for our family’s financial wel-fare and safety, but it can all be snatched away from us in an in-

Are You A Target For A Lawsuit?

by Bill Gatten

Realty411Guide.com PAGE 22 • 2012 reWEALTHmag.com Realty411Guide.com PAGE 23 • 2012 reWEALTHmag.com

Continued on pg. 43

asset protection


Are you looking for the right investment? Are you caught in the confusion of what is

working with the greatest return? Have you heard people talking about investing in notes?

There are so many questions and maybe even a mystery to this form of investing. Questions such as, “Is this a good time to in-vest in notes? What the heck is a

note and how do I make money? Where do I find them? Where do I go to learn about notes?” These are the questions I asked my-self when I started. I found I couldn’t go to one place for all the answers I needed. With all my knowledge in real estate and real es-tate investing, it was not an easy journey to learn what I know. I spent 7,000 plus hours learning the business and researching this industry. I started Asset Ventures with the sole purpose of bringing the blueprint to success for investors in notes.

Asset Ventures has become a leader in working with experienced and novice in-vestors, to educate them in acquiring notes as a solid investment. We are setup to pro-vide a complete one stop, done for you, knowledge-based note company headed by national speaker and trainer Tony Mar-tinez.

Although notes are always a good in-vestment, there has never been a better time than right now to get involved. With the collapse of the housing industry, the banks are overloaded with bad debt/collateral. The note still has value if you buy right and offers investment opportunities like never before.

“One man’s trash is another man’s treasure”

As an investor you can begin with very little capital. Plus, your yield or return on investment can return incredible results. Most real estate investors are challenged in this market, competing with others to

park their investment dollars. Competition for investment oppor-tunities can be very difficult and limited in this volatile market. The note business has fewer players because of a general lack of knowledge.

Understanding the differences and ad-vantages helps note investors keep the best

kept secret to themselves. Asset Ventures provides our investors everything from A to Z.

We know all the secrets. Therefore, we established Asset Ventures as a full-service and training company to mentor educate and service our clients. With experience handling over 1,000 notes, we provide the insight to this unique opportunity.

In an attempt to enter into the note busi-ness, here are seven of the biggest secrets to note investing to keep in mind:

Secret #1 Appreciation VS AmortizationAppreciation is tied into the strength of the economy (it can go up or down) where amortization is constant. In the retail side of selling; pricing and timing are pivotal to your exit strategy. Many investors became real estate rich and cash poor — limited op-tions when the market changed.

Amortization means buying right, which allows you to always make a profit.

There are several exit strategies with lower risk and shorter terms if necessary, based on the investors’ individual needs. As the bank, you control the deal from a distance.

Secret #2 - How much does it cost?You can leverage your risk while using less initial capital, usually just a few thousand dollars. Experience high ROI’s of 12% or more guaranteed (generally more). You will see lower maintenance costs — no re-

pairs, no personal time and no labor. You will have much more buying power. You are not tied into how everyone else is do-ing business — while letting your money work for you.

Secret #3 - How do they WorkA note is a document that states: I.O.U. and dollars are owed. The note also details the amount owed, interest rate, and years to repay a debt. The note controls the deal — much like the Wizard of Oz from behind the curtain. With proper knowledge the note is difficult to erase. The loan doesn’t go away. The owner may lose the property, but the note remains. When you buy smart you have a safe and low-risk investment. You can purchase at deeper discounts than most wholesalers and investors on the retail side, typically for pennies on the dollar.

Secret #4 - Where Do Notes Come FromThe banks are flooded with bad debt, which creates note buying opportunities as they rush to sell off collateral. The banks know they will get less money from a foreclosure or short sale. The banks are overwhelmed with non-performing (delinquent) notes and they can’t sell to each other any longer as the collateral is undervalued.

Secret #5 - You can leverage the note to obtain ownership of the propertyWhile notes can be bought through seller/private financed, probates and lawsuits, the investor can position themselves to be first in line to obtain the property. This can be done in several different ways and usually less of an investment than buying retail. #6 - Why the Banks Sell So CheapThere has never been a better time to buy right as the banks inventory is flooded and they must sell cheap. The bank’s cost for collection activities are not cost effec-tive relative to the result. The banks have to freeze liquid assets to carry bad debt (NPNs). Selling allows the banks to cre-ate more dollars for new loans. The banks want to avoid future lawsuits and simply don’t want the problem any longer.

There is also the TVM — Time value of money (worth more today than 30 years from now). Notes offer investors the secu-rity and benefits of real estate without the burden of maintaining a rental property! Avoid the 4 T’s: Tenants, Toilets, Trash, and Termites!

Is it a Good Time to Invest in Notes?

by Tony Martinez

Tony Martinez

Realty411 Part 1 - Featuring Terica Kindred

Real Estate

Transcript of Realty411 Part 1 - Featuring Terica Kindred