The nation's most read real estate magazine is now producing a financial newspaper to help investors get on track for financial success! It's time to make 2013 your year...
CashFlow Express #3 Featuring Marck de Lautour with SBD Housing Solutions
1. Ca$hFlow
EXPRESS
No. 1 / Vol. 3, 2013 PRICELESS
Join Marck de Lautour on his
Property Tour in Kansas City Marck de Lautour leads investors on a foreclosure tour in Kansas City, Mo.
CashFlow in the Mid West
with SBD Housing Solutions
K
By Stephanie B. Mojica, staff reporter pening more and more, often as banks
desperately try to unload foreclosure ansas City, tions, manufac-
I
properties at auctions on the court- Missouri, turing, service,
nvestors from around the world are boasts all the
house steps. distribution and
flocking to the Mid West to pur- characteristics that
“The banks need the cash and value government sec-
chase rental properties at discounted investors are looking
it is getting today. Lenders are fast tors are heavily
prices. The values can be outstanding. for when buying for
learning, and statistics prove that they represented
In fact, just this year, Missouri real es- long-term holds: a
tate entrepreneur Marck de Lautour, a lose about 50% of the value of the • Investors can
growing population,
native of New Zealand, bought a 12-unit note if they take a property back and expect 10-14%
a diversified econo-
apartment complex valued at $300,000 have to sell through a REALTOR® on yield rates on investment homes
my and an educated workforce.
for just $10,000. the open market,” explained de Lau- • Rehabbers can expect 25-30%
tour, who started SBD Housing Solu- The following are some additional
Six of the units were occupied with highlights that make the “City of equity in homes after repair
the tenants paying $400 a month in rent tions in 2002 in an effort to capitalize
on the growing number of financially Fountains” such a popular stop for • The median rental rate is $1,000
and de Lautour and his staff members savvy real estate investors:
at SBD Housing Solutions were able to distressed homes in the Kansas City, • Typical investment property is a 3
recoup nearly 25 percent of the initial Missouri area. • Stable economy with lower than bed / 2 bath and 2 car garage home
Though most real estate investors average unemployment • Kansas City is home to profes-
investment the very next day! He freely
acknowledges that this doesn’t happen will not regularly strike a dream deal • Diverse employment base: educa- sional hockey, soccer, baseball and
every day, but stories like this are hap- tion, technology, telecommunica- NFL football franchises
Continued on pg. 7
INSIDE: Learn about the National Association of Residential Property Managers
3. NARPM® property managers have heightened
expertise and industry knowledge to assist
them in doing the best possible job. They
are real estate professionals who know first-
hand the unique challenges of managing
rental property in today’s constantly changing
economic and legislative environment. They
know how to manage those challenges to
everyone’s benefit. NARPM® members
have access to numerous educational
Why Use
A NARPM MEMBER? ®
opportunities, making them experts in the
rental industry; they adhere to the highest
Standards of Professionalism and Code of
Ethics; they can maximize rents and income
for you; and they will manage the property
efficiently, professionally and economically—
freeing you up to do other things, like relax.
www.WhyUseOne.com
www.narpm.org
The NARPM® Broker/Owner Conference is intended for the Owners and/or Managing
Brokers of Property Management Companies. Sensitive topics will be discussed including
employment issues, technology innovations, and company structure.
Dates: February 19-20, 2013
Location: Monte Carlo Resort & Casino, Las Vegas, NV
You do not have to be a NARPM® member to attend.
Visit www.narpm.org/conferences/brokerowner/ for more information and to sign up.
4. Why Should You Invest In A
Mobile Home Community?
3
3
3
3
3
3
Learn how I made over
3
$500,000 in profit in
two years by buying 3
one distressed
community
3
3
Log on to any websites
below to get more information
on investing in Mobile Home
Communities and to
Mike Conlon, President/CEO score a free copy of
Mike’s new book:
Unconventional Wealth
Creating the New
Mainstreet Millionaires
AFFORDABLE mainstreetmillionaire.com
COMMUNITIES affordablecommunitiesgroup.com
GROUP
This advertisement is an offer for an educational product is in no way
carolinaturnkeyproperties.com an offer to solicit or sell any investment or security. All investments
contain risk, including potential loss of principal. Please consult your
CashFlow Express • Page 4
5. book review
UNCONVENTIONAL WEALTH:
UNCONVENTIONAL WEALTH:
The New Main $treet Millionaires
Mike Conlon
In this book, Mike Conlon will show you an unconventional path
to prosperity in this very difficult economy by providing quality,
ethical, and affordable services to America’s largest and fastest
growing consumer group. In order to prosper on this path, you
don’t need a college degree, only the willingness to work hard
and learn.
Mike has the unique ability to provide
Americans with a realistic, no B.S. view of the
Teaches Investors to be
financial world today – one that comes from
his years of street-wise investment success
in three different businesses – financial
planning, mid-sized apartment complexes,
and mobile home communities that have
made him a true Main $treet Millionaire.
Main $treet Millionaires
He has bought, rehabbed, and sold over $50
million worth of commercial multi-family
$treet Millionaires
(affordable apartment complexes and
mobile home parks) involving 15 projects
The New Main
over the last ten years. He was a leader in
the financial planning business in the 1990’s
and early 2000’s as he grew a financial
planning broker-dealer from $1.2 million in
gross revenues to $40 million in six years and
then sold it to a large national insurance
Unconventional Wealth: The New Main $treet
company; he also managed over $100
entrepreneurship? Yes. Is it a step-by-step guide that
million of client money in his own financial
planning practice before becoming
The New Main
Millionaires by Mike Conlon
completely disillusioned with Wall Street
can lead to financial independence?
money machine. He is a 1990 graduate of
the University of Minnesota Law School.
$treet Millionaires
MIKE CONLON
{ A Book Review by Isaac Newkirk III } It is all that and more. It is essentially an exposition
Mike’s basic investing premise has brought
him success over the last decade and he
foresees even more opportunities over the
of the wherewithal to succeed. Mike Conlon looks
next 10 years. Unconventional Wealth gives
readers insight into the skillz they need to
“Main Street Millionaire” is a term that author Mike within and carefully charts his own experiences. He
become Main $treet Millionaires.
Conlon uses to describe looks without and notes where the experiences of oth-
those of us who achieve ers can be illumi- MIKE CONLON
financial freedom using nating.
an “unconventional path Mike Conlon’s book Unconventional Unconvention-
to prosperity.” That path al Wealth begins
Wealth is a guide through the maze of with a reality lon doesn’t trust the official government figures, and
is through entrepreneur-
ship. While the overarch- entrepreneurship. He gets you focused check: a look at he suggests that you shouldn’t either. Besides, he avers,
ing message of the book is how things were the way things used to be will never again be. He sees
on the prize: learning the skills you and how they’re “two distinctly separate economies emerging — the
very positive (the fact that
financial freedom is within need to survive in your chosen field. going to be. That daily struggle of the working poor and the insulated
the reach of all of us), some old adage of “the bubble of the rich.” It is for each individual to decide
of his predictions are dark proof of the pud- which segment he’ll reside in. Remember that adage
and dreary (sixty percent of the population will be ding is in the eating” has never rang truer as Conlon about pudding and the eating thereof? As Conlon care-
amongst the working poor during the next decade). describes how “small department stores, niche re- fully lays out his case for financial freedom, it’s hard
not to acknowledge that, yes, these points make per-
Unconventional Wealth: The New Main $treet Mil- tailers, upscale restaurants, etc. have been replaced
fect sense.
lionaires gets to the core of what it takes for an in- by tattoo parlors, pawn shops, internet cafes, check
dividual to realize financial freedom; it explodes the cashing/bill pay stores, dollar stores and other ‘low One of his major points is that college is a huge waste
myth of a society that chooses (primarily through end’ types of stores all over America.” The reader is of money. Some august journalistic mediums (includ-
education) which of us is going to be blessed with forced to realize that the society we thought we knew, ing the New York Times) have recently been running
the good life. no longer exists.
But isn’t the job market improving, you ask? Con- Continued on pg. 11
Is it a self help book? Yes. Is it a testimonial to
ARE YOU READY FOR THE NEW YEAR?
T NUM MARKETINEG SE RVICES
GELATI
P TALIZE ON TH
AN D CAPI
MA RKET
CashFlow Express • Page 5
6. Myths about
- advertorial -
Realty Trends in California
GCA Equity Partners, LLC Announces 3rd Quarter
Results for its GCA California Real Estate Fund
•12.26% Annualized Net Return to Fund Investors for the Quarter
Land Trusts
•12.04% Annualized Net Returns to Fund Investors Since Inception By Randy Hughes, Mr. Land Trust
•S&P 500 Index Up 2.5% During Same Time Period (4.7% Annualized)
I write and teach a lot about the many
to increase their account sizes with us last benefits to using a Land Trust to hold
GCA Equity Partners, LLC announced
quarter.” title to real estate investments. There is
that its GCA California Real Estate Fund
According to data from website Yahoo a lot of misinformation in the market-
provided investors with an annualized
Finance (www.finance.yahoo.com), place about Land Trusts and a lot of
return on contributed capital of
the S&P 500 index was up approxi- bad advice given regarding these
12.26% for the quarter end-
mately 2.5% (4.7% annualized) title holding trusts. After using
ed September 30, 2012.
from March 20, 2012 through these trusts for over 30 years I have
Investors who have
September 30, 2012, consis- found that the myths outnumber
participated in the
tently underperforming the the facts. In this article I will dis-
fund since incep-
GCA fund during the same pel some of the myths that I hear
tion have realized
time period. over and over.
a 12.04% total return,
Wondering what else GCA
annualized through the
Equity Partners is up to? Stay MYTH: My lender will not let
same date.
up to date on Facebook and me close my deal using a Land
The Fund earns money property is located.
Twitter. Be sure to visit their so- Trust (LT)
for its investors primarily by
cial media pages for their latest news TRUTH: This depends on if you are us- TRUTH: Wrong! Many accountants will
making short-term loans to borrowers
and updates. ing borrowed funds from a lender that tell you this, but they are incorrect. The
who buy distressed real estate to rehabili-
must qualify you in the secondary mar- beneficiary of the Land Trust is not “do-
tate and resell. Loans are typically struc- About GCA Equity Partners
ket. If you must meet secondary market ing business” in the state where the prop-
tured so that the Fund receives monthly The Fund, a California State registered of-
guidelines it is true that you must close erty is located...the Land Trust is...and
interest, as well as a portion of the appre- fering, offers investors an 8% annual pre-
the deal in your name, but you can put the Land Trust is not required to register.
ciation for each project funded (known as ferred rate, but targets total annualized in-
the property into a land trust the day af- Note: California has a law that says if
“contingent interest”). Investments in the vestor returns in the low double digit range
ter closing. Once you have 10 secondary you transfer more than 49% of ANY en-
Fund are diversified into multiple loans through its combined interest and shared
market loans (the maximum allowed) tity that owns property in CA or is the
and each loan is secured by the property to appreciation (contingent interest) lend-
you must use a portfolio lender and they beneficiary of a Trust that owns property
decrease risk and increase safety. ing model. Investors must be California
will let you close using your land trust. in CA, they have the right to tax you.
“Many investors are looking for alter- residents, meet certain income and/or net
Note: Bank of America WILL let you MYTH: Land Trusts are expensive to
native investment options to increase re- worth requirements, and limit their invest-
close four secondary market loans using set up and maintain
turns and diversify their portfolios beyond ment in the Fund to no more than 10% of
traditional stocks and bonds,” said fund their net worth as defined by the State of a land trust to take initial title. However, TRUTH: Not true. If you follow my ad-
manager Charles Tralka. “That fact, along California. More information about GCA you must use an Illinois Land Trust and vice to put each of your properties into a
with our continued strong performance, Equity Partners and the GCA California the property must be in Illinois. separate Land Trust and you hire an at-
brought multiple new investors to the Fund Real Estate Fund is available at www. MYTH: Do I have to get a tax ID num- torney to do this for you, it WILL get ex-
and caused many of our current investors gcaequitypartners.com. ber for my LT? pensive. But you do not need to do this.
TRUTH: The answer is no. Nor do you You can learn how to set up and admin-
have to register your Trust Agreement ister your own Land Trusts (as many as
Investor Spotlight: with anyone.
MYTH: You can’t do a Short Sale us-
you need/want) for only the continuing
cost of recording each deed.
Marko Rubel ing a LT. MYTH: Land Trusts must have incor-
TRUTH: False. You can and I have and poration papers and the State noti-
there are many advantages to using a LT fied.
Meet the Founder of for this type of transaction. TRUTH: Wrong again! Land Trusts
are not registered like corporations
“Unlimited Funding Program” MYTH: Is it true that I must record
and LLC’s on a state-by-state basis (in
my Trust Agreement to make it val-
M
id? fact, they are not registered at all...any-
arko Rubel is the nation’s leading where!). This is one of the many reasons
TRUTH: No, and 99% of the time you
authority on pre-foreclosure and distressed property investing. to start your estate planning with a Land
would not want to record your trust
His “Unlimited Funding Program” has enabled investors to buy Trust for each property you buy.
agreement. However, there is that 1%
properties and profit WITHOUT using their credit or savings. reason that you might want to record. MYTH: It is illegal to hide the owner-
More on that in another article. ship of property.
>>> Special Gift for CashFlow Express Readers: TRUTH: I love this one. WRONG! It is
MYTH: My attorney says Land Trusts
FREE “Unlimited Funding” Business Kit – Claim your copy here: not illegal to hold title to your real estate
are illegal in my state
www.ProfitWithoutBanks.com in a Land Trust to conceal the owner-
TRUTH: This is probably not true. Al-
ship (I call this being private about your
Rubel is also one of America’s top educators, who is still an active, full- most all states recognize the validity of
business). The president of the United
a LT or a similar type entity (Title Hold-
time investor participating in over 300 transactions. Using his proprietary States, Barack Obama, owns his home in
ing Trust, Common Law Trust, etc.).
automated systems, he earned profits exceeding $1,000,000 in a single Chicago, IL in a Land Trust with his at-
My experience is that a vast majority of
year. When Rubel arrived in the United States he virtually had nothing. torney serving as the trustee. If it is good
lawyers do not understand Land Trusts
enough for our president, it should be
In fact, he couldn’t even speak English. When he started investing in and therefore do not recommend them.
good enough for you!
real estate, he was destined to fail because his credit was non-existent Too bad for their clients...they are miss-
and he had no money. He turned his destiny around by discovering and ing out on 50 reasons to use a LT (I have
written a booklet called “50 Reasons to This is certainly not a complete list of
perfecting the strategies that leverage other people’s credit. After a few misconceptions about Land Trusts, but
Use a Land Trust” and will send it to
hundred successful transactions, he perfected the system and created is enough to digest for now. I will write
you for free if you send me an email at:
the Unlimited Funding Program. randy@mrlandtrust.net more on this subject in future articles.
If you want to buy properties without using your credit, talking MYTH: If I use my LLC as the ben- Feel free to contact me if you have any
to lenders or jeopardizing your savings, go to Rubel’s website at: eficiary of a Land Trust I must reg- specific questions. My number is: 866-
ister the LLC in the state where the 696-7347. Or, randy@mrlandtrust.net
www.ProfitWithoutBanks.com Be sure to visit today to learn more and
receive his free tips and insights.
CashFlow Express • Page 6
7. CashFlow in the Mid West, pg. 1
like the 12-unit apartment complex, ents are looking to build a portfolio of $950, dropping their
many single-family homes and multi- income producing assets.” payment down from
family properties are selling at foreclo- Buying any property at auction can the $1,300 that their Photographs from left to right, clockwise:
sure auctions for as little as 30 cents on be a risky proposition, but SBD Hous- mortgage had escalated to. Immediate Marck de Lautour, owner of SBD Housing
the dollar. cash flow to the investor and the people Solutions, leads our investor group on a tour of
ing Solutions has a detailed process the foreclosure market in Kansas City, Mo. The
Buying a $150,000 home for $33,000 that minimizes risk to clients. All prop- get to stay in their home… it is a true group inspected numerous single family homes
on the courthouse steps is fairly com- erties include title insurance. win-win.” In the Kansas City area, de perfect for an investor’s rental portfolio. Photo
mon in these economically challenged Also, the investor has immediate Lautour has noticed a growing number above: Marck provides tips to investors in the
of already occupied duplexes and four- group, who were both local and out of state.
times, which offers even inexperienced possession of the property, which elim- Below: SBD Housing Solutions specializes in
real estate investors an opportunity to inates the 30-day closing and rehab can plexes showing up at recent foreclosure top quality rehab work.
“Right now is a great time to buy and we’re preaching buy and hold,”
said de Lautour. “We can still flip in this market because we’re buying
so cheap, but we always analyze our homes on a case by case basis...“
make a profit. “There’s no way you begin immediately. auctions. Whether
can buy cheaper than at the courthouse “Some of our best success stories an investor buys a
steps,” said de Lautour, “And obviously have been Rent Back to Owner deals, single family home
when you’re buying that cheap, the cash where we buy a property and then rent or a multi-family
flow kind of takes care of itself.” property, the team
SBD Housing Solu- at SBD Housing
tions is a full service Solutions is there
real estate firm that to help him come
specializes in buying up with the best
investments for their cash flow plan pos-
investor clientele. sible.
The average client The SBD Hous-
of SBD Housing Solu- ing Solutions team
tions not only enjoys a takes more of a
12 to 15 percent return Financial Services
on investment, but the approach to the in-
bonus here is the in- dustry. Even though foreclosures, the economy in Kansas
stant home equity of the investor owns the home outright, City is strong but does not seem to be
$25,000 to $30,000 they say they treat their client relation- on a dramatic upswing, de Lautour says.
that can be converted ships more like a partnership, where we Conservative investors can expect to
into cash if needed. are simply trying to build wealth for wait three to five years to maximize the
SBD Housing Solu- their clients. return on their investment properties.
tions has an A+ rating with the Better it back to the former owner. Sounds “Right now is a great time to buy and About 90 percent of SBD Housing So-
Business Bureau and has built a solid like it goes against logic, but with so we’re preaching buy and hold,” said de lutions clients hold properties while the
reputation that is drawing American cli- many adjustable rate mortgages, we Lautour. “We can still flip in this mar- other 10 percent rehabilitate and flip
ents as well as international investors find that good honest people just gave ket because we’re buying so cheap, but the houses.
from as far away as South Africa, Hong up on trying to work with the banks and we always analyze our homes on a case Investors may have different exit
Kong and New Zealand. are simply looking to get back to a fair by case basis. There are so many vari- strategies, but one thing they can all
“We have a huge repeat business cli- rental rate for their home” explained de ables in real estate investing, we have agree on is that Kansas City is a market
entele, which we’re pretty proud of,” Lautour, “a classic example would be to look at the whole picture before mak- worth entering.
said de Lautour. “Although we can ser- a home that sold for $135,000 in 2006, ing a decision on what makes sense for For more information about SBD Hous-
vice the investor that is just looking to we buy it on the steps for $45,000, but that individual owner.” ing Solutions, call (816) 994-9401 or
buy one or two homes, most of our cli- rent it back to the former owner for With the increasing number of home visit www.sbdhousing.com
CashFlow Express • Page 7