Cashflow Express featuring HGTV's Flip or Flop

Ca$hFlow
EXPRESS
TV’s Favorite Fix & Flip Family
Tarek &Christina from HGTV’s “FlipOr Flop”
Passive Income for Today & Tomorrow PRICELESSVol. 2, No. 3, 2015
INSIDE: Finance Resources for Investors • Go Green with Hydro Power & Solar
Randy Reiff, CEO of FirstKey Lending
Continued on pg. 8
month apartment.
For two long years Tarek admits
“it was a struggle to pay the bills.”
In 2007, El Moussa recalls “putting in
12-hour days with no paycheck com-
ing in for about 4 months.”
This may not be a level of transpar-
ency that most real estate gurus are
comfortable with, but it is this level
of authenticity that is needed to im-
press upon newcomers what it really
takes to win in real estate year after
year.
So how did Tarek manage to beat
ting to “outwork and out-study” the
competition.
This echoes of recent Mark Cuban
remarks that success isn’t about who
you know or how much you have to
start with, but your willingness to go
the extra mile.
Being a big advocate of educa-
tion, how does Tarek recommend in-
vestors beef up their knowledge and
expertise? “Seminars, books, maga-
zines, and attending investor clubs.”
Unconventional advice from
Tarek El Moussa on being on
top versus having a flip flop.
S
cooping a few minutes with
the busy star of HGTV’s “Flip
or Flop” reality show, Tarek
El Moussa, we managed to get his
latest tips on what it takes to stay on
top in California’s hot housing mar-
ket. It’s not what you would expect…
Flip or Flop
Tarek and Christina El Moussa
are the celebrity house flippers on
HGTV’s hit show “Flip or Flop.” The
Orange County, Calif., real estate
power couple are rapidly becoming
some of the best known personalities
in the business.
Having been in for the ride since be-
fore the last bubble burst, these two
real estate pros bring a fresh and raw
perspective on what it really takes to
win in one of the hottest markets in
the country, no matter what wrenches
are thrown in the works.
Real Estate can be a
White-Knuckle Ride
In our exclusive interview with Tarek
El Moussa we discover some of the
unconventional, atypical advice and
tactics it takes to succeed behind the
scenes.
If anyone should know what it
takes, it is Tarek and Christina. Press
coverage of the OC couple’s new Flip
Advantage Education seminar series
reveals that when the market flopped
Tarek went from selling multi-mil-
lion dollar California mansions like
hotcakes to trading his Benz for a
Honda, and a $6,000 per month mort-
gage payment for sharing a $700 per
the worst recession and housing
crunch most of us have lived through,
and how is he making sure he is never
forced to downsize again?
What do Tarek and Mark
Cuban Have in Common?
While in the past El Moussa has said
there is an element of stepping out and
being willing to take risks to achieve
rewards in flipping houses, he tells
me that what got him through the dip
was “I refuse to fail,” and commit-
For two long years Tarek admits“it was a struggle to pay
the bills.” In 2007, El Moussa recalls “putting in 12-hour
days with no paycheck coming in for about 4 months.”
Exclusive by Tim Houghten
Tarek and Christina El Moussa, from HGTV’s “Flip or Flop” embrace their daughter, Taylor Reese El Moussa.

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Co-publishedbyRealty411
Green Energy Growth Creates
Investor Opportunities in
Hydro PowerChallenges in the
Electrical Grid
N
ew England’s elec-
tricity prices are
directly impacted by
weather conditions,
the regions extreme reliance on
natural gas supplies, and the
cost of oil and demand. The en-
vironmentalists and the current
administration are targeting the
1950s and 1960s era coal and
oil plants for closure to meet
new pollution control standards.
Nuclear plants are also casualties of the same
effort. Without this much needed capacity,
production is very expensive. These closures are
creating huge problems for Northern New Eng-
land, in particular New Hampshire and Maine.
The only current potential generation source
is natural gas fired generation. Last year, natu-
ral gas provided 52 percent of New England’s
electricity, and that share is expected to grow.
Gas is generally cheaper than other energy
sources. About 30 percent of the generators in
the New England region burn coal and oil but
they produce less than one percent of the energy
because they run so seldom.
New England is the most vulnerable to over-
reliance on natural gas, caused by a shortage
of pipeline capacity. Since 2010 demand has
outpaced delivery capacity of gas infrastructure.
The underlying issue in New England is that gas
pipeline capacity is inadequate to keep prices
steady in times of high home heating demand.
An ISO-NE (Independent System Operators of
New England) study concluded that reliability is
intertwined with price.
The constraints are also affecting industrial
natural gas customers, who are expected to see
prices for fuel jump by more than 60 percent
by Dave Franecki
in the next year, according to an
analysis by consultants at Com-
petitive Energy Services. While
prices are rising throughout New
England, the analysis shows
Maine’s unit price for natural gas
is about two-thirds higher than
New Hampshire and ten times
the price in New York. Wholesale
electricity prices are a function of
fuel prices. Shortages in natural
gas spikes pricing, which also
increases the wholesale price that a
hydro facility can command. There
is enough generation capacity but
an acute shortage of natural gas to
fire the electric plants. There is
plenty of natural Marcellus shale
gas. There are four pipelines cur-
rently in New England (all west of
the Hudson River). A fifth gasoline is needed, which
the shippers will not fund. There is no quick fix; this
will take several years to remedy.
Numerous utilities across New England have an-
nounced electricity rates that are some of the highest
in the history of the continental United States, and
it’s a problem that’s expected to get worse before it
gets better. The problem is that on the coldest days,
there just isn’t enough space in the pipelines to go
around. So when the temperatures drop, demand
rises and electric plants bid up the prices, easily five
times higher on certain cold days.
The reason that supply is constrained at times of
extreme cold is because heating demand gets first
dibs on any natural gas pipeline capacity. What’s
Continued on pg. 8
CashFlow Express • Page 3

FOUNDER
Linda Pliagas
info@realty411guide.com
EDITORIAL STAFF
Tim Houghten
Lori Peebles
Stephanie Mojica
COPY EDITOR
Morgan Schaal
PHOTOGRAPHER
John DeCindis
PRODUCTION
Lori Peebles
Augusto Meneses
PRESIDENT
Nikolaos K. Pliagas
PUBLISHED BY
Realty411 Magazine
EVENTS & EXPOS
Lawrence Ruano
WEBSITE
Maria Victoria
GROW YOUR BUSINESS WITH US!
FOR ADVERTISING INFORMATION:
805.693.1497
We provide FREE Copies for
your Meetup Group or REIA
Passive Income for Today & Tomorrow
Ca$hFlow
EXPRESS
Yes!You can be
rich from
owning real
estate and trading stocks.
We’ve all heard the story of the
little old lady who lived modestly
and worked as a school teach-
er for 40 years. She never
earned more than $35,000 per
year, owned a modest home,
and shared her life with two
cats. Once she died, her rela-
tives discovered a $150,000
life insurance policy and $1.5
million in stocks that she left
to the elementary school’s
scholarship fund.
The national media loves
to air these stories. It seems
there are several old ladies
who fit this seemly unique
profile year after year. How could
that be?
Investing in stocks is not the
world’s most challenging task. In
fact, at its core, it’s very simple. The
truth is that the stock market creates
millionaires every year. Investing in
stocks, with wealth in mind, is easier
than you think.
Invest In What You Know
Wanna be a good stock market in-
vestor? Keep it simple and start with
companies and products with which
you are familiar.
If you’ve ever opened a can of
Coca Cola on a hot summer day and
felt refreshed and invigorated, why
not own the stock? It’s a product you
know with a story you understand.
When I say “a story you understand,”
I mean to say that you understand
how the Coca Cola
Corporation makes
money, or to ex-
press it in Wall
Street terms, you
understand how
the company earns
revenue. The more
bottles and cans of
Coke that Coca
Cola sells around
the world each day,
the larger the com-
pany’s profit. Over
the past ten years Coke stock (symbol
KO) has risen from around $40 per
share to a high of $71 — $1000 in-
vested in Coca Cola stock ten years
ago would be worth $4,100 today;
$10,000 invested in Coca Cola stock
would be worth $41,000 today.
If you spend more than $100 per
year eating fast food, why not own
the stock? Over the past ten years
McDonalds stock (symbol MCD) has
risen from a low of $15 per share to a
high of $95 per share.
By Doug Carver
Organizer Pasadena and Burbank
Cashflow Meetup Groups
I
can remember my first time play-
ing Robert Kiyosaki’s Cashflow
board game about eight years
ago and how it
started a chain
of events that continues
to this day. What stuck
with me most was not the
“how to” of playing the
game but the people that
I met at the event. These
were not like the normal
people in my life that
would tell me I was crazy
for trying to start my own
real estate business or
that financial freedom was impossible
without a steady well-paying job. The
people I met were excited about learn-
ing and expanding their knowledge on
how to achieve financial freedom. They
were active investors in real estate and
the stock market. They were small busi-
ness owners with a passion and vision
for creating more financial success in
their lives. Overall, they had a mindset
for prosperity that I like to call a “Cash-
flow” mindset.
A lot of people complain that Kiyosaki
does not provide the specific details on
how people should implement his strat-
egies to create financial freedom in his
books and programs. Truth is he never
spells out a step-by-step “how to” for
building long-term financial freedom.
What he does teach is far more impor-
tant, and that is how to create a “Cash-
flow” mindset. Kiyosaki describes it in
his book Cashflow Quadrant moving
your mindset from the E (employee) and
S (self-employed) side of his Cashflow
quadrant to the B (business owner) and
I (investor) side of the quadrant. In lay-
man’s terms, it’s the mental shift from
someone who seeks financial security at
all costs to someone who can confidently
and knowledgeably take measured risks.
This is a simplistic definition but a very
important one to understand. Without the
correct mindset, it really doesn’t matter
how much you learn the “how to” of real
estate investing, trading stocks, building
a strong MLM business, etc. You will not
succeed. It’s like trying to grow corn in
a field of sand. The seeds will not germi-
nate and you’ll end up with next to noth-
ing to harvest in the fall.
How, you ask, does this relate to the
Cashflow game?
Well, after playing
the game a bunch
of times, I learned
the “how to” of
getting out of the
rat race, but I still
was not able to
take what I learned
from the game and
apply it to my real-
life financial situ-
ation. However, I
realized that the time I was spending with
my new Cashflow friends was changing
the way I thought about money and my
financial future. I no longer viewed the
stock market as a giant rigged system for
losing money. I began to see the tremen-
dous opportunities in the sinking real es-
tate market even as many people I knew
were losing money on deals that had gone
bad. Overall, I saw for the first time op-
portunities all around me to create wealth
even as the newspapers talked constantly
of the “Great Recession.”
Today as a result of my ongoing in-
volvement playing and organizing local
Cashflow events in Southern California,
I have a thriving real estate investing
business. It was after speaking with one
of my Cashflow friends who was a real
estate investor that I was encouraged to
start wholesaling distressed properties. It
turned out to be a great decision. More
recently, I’ve begun to learn how to suc-
cessfully trade in the stock market using
options. As a self-proclaimed real estate
“zealot”, I never would have dreamed of
investing in the equity markets. Howev-
er, after playing Cashflow 202 with my
Cashflow friend ,who is an active trader,
and learning about his trading system, I
was able to see the opportunity before
me. I now fully expect that investing in
the markets will be a huge part of my fu-
ture financial success in addition to my
Learn How to Create Stock
Market Wealth Today
Investors Manifest a
“Cashflow” Mindset
FREENo. 1 / Vol. 1 2012
Personal Finance News from the Publishers of Realty411 Magazine - www.Realty411Guide.com
Continued on pg. 2
Continued on pg. 12
By Tyrone Jackson
TheWealthyInvestor.net
Doug Carver (left) and Chris Hanson dis-
play the Cashflow game to group members.
Contents - Spring 2015
1 Meet HGTV’s “Flip or Flop” Family
3 Green Energy Opportunities
4 Publisher’s Welcome Note
6 Solar Advantages for Investors
10 Crowdfunding Comes of Age
11 Setting Probate Goals in 2015
14 North Dakota’s Oil Boom
15 Five Land Trust Stories
13 Investing in Texas Land
16 The REI Roadmap Tours
18 Tax Advantages & Multifamily
19 Get Started as a Rehabber
20 From Zero to $20K Monthly
26-29 Mingle & Connect with Us
A Realty411 Publication
CashFlow Express is published in Santa Barbara County by Realty411. © Copyright 2013. All Rights
Reserved. Reproduction without permission is strictly prohibited. The opinions expressed by writers and
columnists are not endorsed by the publishers and/or editorial staff. Before investing in real estate,
stocks, bonds, mutual funds, gold, or securities, seek the advisement of a trusted financial advisor,
attorney or tax consultant. Investing in any asset and market sector is risky business and may result in
the loss of capital. Please invest responsibly. PRINTED IN THE USA ~ GOD BLESS AMERICA
Disclosure and Information - Attention All:
The publications, events, expos and mixers produced and promoted by
Realty411guide.com, reWEALTHmag.com and/or their owners, em-
ployees, agents and affiliates (collectively “411”) are for informational
and entertainment purposes ONLY. The information and presentations
provided therein do not constitute an offer or solicitation to buy or sell
securities or real estate. Please be aware that real estate investing is
VERY RISKY. 411 is not responsible for any of the information pro-
vided and/or statistical data presented, and 411 does not represent that
any information or opinions expressed and data provided reflect the
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events, and do not reflect the opinions, advice or research of 411. By
attending 411 events you acknowledge that the investment strategies
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is inherently risky, that all investments are subject to risks, which could
result in the entire loss of your investment, and that 411 is not respon-
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**Please remember real estate, and all investing, is risky by nature and
may result in the entire loss of your principal investment.
2015... the
commencement
of a New Year.
W
hat a perfect time
to look back at
the previous 12
months and re-
flect on all of the outstanding
moments of the year. It's also
important to take an honest look
at some of the mistakes we may
have made along the way.
If you did not add some real
estate to your portfolio in 2014,
depending on where you live, this
lack of activity could mean miss-
ing out on a strong momentum
of appreciation. While markets
differ according to region, in the
coastal portion of California, our
home base, the markets have re-
bounded substantially for the past
couple of years.
The investors who were astute
enough to close deals the past
few years are certainly smiling
now and celebrating a prosperous
New Year.
While real estate does have
similarities to stocks, in which
nice profits can be reaped by
timing transactions, the truth is,
investors can make money at
any time in both sectors. Inves-
tors can come across deals when
they least expect it. The act of
creating real estate wealth is not
limited to a certain time of year,
region or asset class. The pos-
sibility of turning a problematic
property around can happen at
any time and in any place.
Investors are problems solvers,
and we live in a reality where
distressed sellers, neglected
properties, marital splits, and
homeowner deaths will never
cease. My point is that it's never
too late for you to get started in
building your real estate portfolio
or expanding it further.
When we host expos around the
country, I meet investors from
every age group. Once we had a
high school student attend with
her grandfather! It was wonder-
ful. It's exhilarating to know we
unite everyone for one day to
celebrate a common passion and
purpose. The sharing of ideas,
experiences and concepts can
open our minds. A new tip can
be the missing link to your cur-
rent problem. That new member
in your Meetup Group could end
up being your next private lender
or business partner. One just never
knows!
Chances are that you picked up
this issue of CashFlow Express at
one of our real estate expos around
the country, so I want to congratu-
late you for taking the time out of
your busy day to join us. We real-
ize that in order to see results in
our real estate, business and life,
we need to step out of our comfort
zones and build connections. It's
crucial to meet others who are
successful in the niche you want
to excel in. Get to know them,
ask them questions, listen to their
strategies and warnings. Don't be
afraid to invest in a solid mentor
or coach. Connecting with a leader
who can steer you in the right
direction and hold you accountable
can make all the difference in your
life.
You don't have to venture into
unknown territory, chart your
course with the assistance of oth-
ers who have traveled those roads
beforehand. And if you can't find
it in your budget to hire a men-
tor, then you definitely want to
attend real estate events, mix-
ers, meetings and expos and ask
a lot of questions. If the experts
and industry gurus are at a public
event, it's because they want to
be a resource and give back, they
are there for you. Don't disappoint
them by being afraid to engage in
conversation.
I encourage all readers to step
out of their comfort zones and into
public forums. Put the cell phone
down, get off social media, and go
shake hands with someone new.
Go ahead... rub elbows and trade
business cards, success isn't going
to find you while your cocooning
at home or in the office.
It's 2015, and your next big deal
awaits...
Are you ready?
LindaPliagas
Be Social and Receive Updates from Linda Pliagas on
Facebook, Twitter, LinkedIn, Pinterest, Ning, and Google+
FOUNDER
Linda Pliagas
pliagas@msn.com
EDITORIAL STAFF
Hannah Ash
Lori Peebles
Stephanie Mojica
COPY EDITOR
Lori Peebles
PHOTOGRAPHER
John DeCindis
PRODUCTION
Lori Peebles
Augusto Meneses
PUBLISHED BY
Realty411
ADVERTISING
805.693.1497
EVENTS & EXPOS
Teri Burke
Suzanne Lilly
Lawrence Ruano
WEBSITE
Maria Victoria
TO REACH US, CALL:
310.499.9545
We provide complimentary copies
for your CashFlow group or REIA
Passive Income for Today & Tomorrow
Ca$hFlow
EXPRESS
Yes!You can be
rich from
owning real
estate and trading stocks.
We’ve all heard the story of the
little old lady who lived modestly
and worked as a school teach-
er for 40 years. She never
earned more than $35,000 per
year, owned a modest home,
and shared her life with two
cats. Once she died, her rela-
tives discovered a $150,000
life insurance policy and $1.5
million in stocks that she left
to the elementary school’s
scholarship fund.
The national media loves
to air these stories. It seems
there are several old ladies
who fit this seemly unique
profile year after year. How could
that be?
Investing in stocks is not the
world’s most challenging task. In
fact, at its core, it’s very simple. The
truth is that the stock market creates
millionaires every year. Investing in
stocks, with wealth in mind, is easier
than you think.
Invest In What You Know
Wanna be a good stock market in-
vestor? Keep it simple and start with
companies and products with which
you are familiar.
If you’ve ever opened a can of
Coca Cola on a hot summer day and
felt refreshed and invigorated, why
not own the stock? It’s a product you
know with a story you understand.
When I say “a story you understand,”
I mean to say that you understand
how the Coca Cola
Corporation makes
money, or to ex-
press it in Wall
Street terms, you
understand how
the company earns
revenue. The more
bottles and cans of
Coke that Coca
Cola sells around
the world each day,
the larger the com-
pany’s profit. Over
the past ten years Coke stock (symbol
KO) has risen from around $40 per
share to a high of $71 — $1000 in-
vested in Coca Cola stock ten years
ago would be worth $4,100 today;
$10,000 invested in Coca Cola stock
would be worth $41,000 today.
If you spend more than $100 per
year eating fast food, why not own
the stock? Over the past ten years
McDonalds stock (symbol MCD) has
risen from a low of $15 per share to a
high of $95 per share.
By Doug Carver
Organizer Pasadena and Burbank
Cashflow Meetup Groups
I
can remember my first time play-
ing Robert Kiyosaki’s Cashflow
board game about eight years
ago and how it
started a chain
of events that continues
to this day. What stuck
with me most was not the
“how to” of playing the
game but the people that
I met at the event. These
were not like the normal
people in my life that
would tell me I was crazy
for trying to start my own
real estate business or
that financial freedom was impossible
without a steady well-paying job. The
people I met were excited about learn-
ing and expanding their knowledge on
how to achieve financial freedom. They
were active investors in real estate and
the stock market. They were small busi-
ness owners with a passion and vision
for creating more financial success in
their lives. Overall, they had a mindset
for prosperity that I like to call a “Cash-
flow” mindset.
A lot of people complain that Kiyosaki
does not provide the specific details on
how people should implement his strat-
egies to create financial freedom in his
books and programs. Truth is he never
spells out a step-by-step “how to” for
building long-term financial freedom.
What he does teach is far more impor-
tant, and that is how to create a “Cash-
flow” mindset. Kiyosaki describes it in
his book Cashflow Quadrant moving
your mindset from the E (employee) and
S (self-employed) side of his Cashflow
quadrant to the B (business owner) and
I (investor) side of the quadrant. In lay-
man’s terms, it’s the mental shift from
someone who seeks financial security at
all costs to someone who can confidently
and knowledgeably take measured risks.
This is a simplistic definition but a very
important one to understand. Without the
correct mindset, it really doesn’t matter
how much you learn the “how to” of real
estate investing, trading stocks, building
a strong MLM business, etc. You will not
succeed. It’s like trying to grow corn in
a field of sand. The seeds will not germi-
nate and you’ll end up with next to noth-
ing to harvest in the fall.
How, you ask, does this relate to the
Cashflow game?
Well, after playing
the game a bunch
of times, I learned
the “how to” of
getting out of the
rat race, but I still
was not able to
take what I learned
from the game and
apply it to my real-
life financial situ-
ation. However, I
realized that the time I was spending with
my new Cashflow friends was changing
the way I thought about money and my
financial future. I no longer viewed the
stock market as a giant rigged system for
losing money. I began to see the tremen-
dous opportunities in the sinking real es-
tate market even as many people I knew
were losing money on deals that had gone
bad. Overall, I saw for the first time op-
portunities all around me to create wealth
even as the newspapers talked constantly
of the “Great Recession.”
Today as a result of my ongoing in-
volvement playing and organizing local
Cashflow events in Southern California,
I have a thriving real estate investing
business. It was after speaking with one
of my Cashflow friends who was a real
estate investor that I was encouraged to
start wholesaling distressed properties. It
turned out to be a great decision. More
recently, I’ve begun to learn how to suc-
cessfully trade in the stock market using
options. As a self-proclaimed real estate
“zealot”, I never would have dreamed of
investing in the equity markets. Howev-
er, after playing Cashflow 202 with my
Cashflow friend ,who is an active trader,
and learning about his trading system, I
was able to see the opportunity before
me. I now fully expect that investing in
the markets will be a huge part of my fu-
ture financial success in addition to my
Learn How to Create Stock
Market Wealth Today
Investors Manifest a
“Cashflow” Mindset
FREENo. 1 / Vol. 1 2012
Personal Finance News from the Publishers of Realty411 Magazine - www.Realty411Guide.com
Continued on pg. 2
Continued on pg. 12
By Tyrone Jackson
TheWealthyInvestor.net
Doug Carver (left) and Chris Hanson dis-
play the Cashflow game to group members.
Contents - 2014
1 FirstKey Lending Offers Options
4 Publisher’s Welcome Note
5 The Millionaire Maker Returns
6 Management Tips by Pam Texas
7 Out-of-State Investment Advice
9 Rehab with Andrew Cordle
10 Q-n-A with Zinc Financial
12 & 18 Attract Private Lenders
13 Investing in Texas Land
15 The Investment Lab is Open
16 Incorporate a Business
21 & 23 CashFlow Resources
24 Scenes from Our Expos
26 How to Avoid Capital Gains
From the Publishers of Realty411 Magazine
(415)883-2150
PacificPrivateMoney.com
1604 Grant Ave., Novato, CA 94945 California Department of Real Estate Brokers #1897444
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Hall in Culver City. Fast forward to the present and our company has hosted
events in San Diego, Indianapolis, Los Angeles, San Jose, Scottsdale, Pismo
Beach, Seattle, Atlanta and even New York City just this year alone! It’s a
dream come true, and we plan on hosting many more expos and mixers around
the nation, including upcoming events in Florida, Missouri, Ohio, and Texas.
Our largest expo has attracted up to 300 people and our smaller events
regularly unite an exclusive group of veteran real estate leaders. We plan on
expanding our events even further. My goals are lofty: I envision some day
hosting international real estate conferences — this is precisely how much I
enjoy and believe in the power of networking.
It is a pleasure and privilege to meet the readers of our numerous publica-
tions. We produce our quarterly glossy Realty411 magazine, with Real Estate
Wealth as an alternate cover. We have separate distribution and websites for
each. The 100-page glossy is available at no charge at selected grocery stores,
and will soon be available in bookstores across the country.
Next, we have our REI Wealth Monthly, a digital and interactive issue spe-
cifically designed for online enjoyment. It was created for the Apple News-
stand by Noland Araracap, a San Diego-based technology enthusiast. Next, of
course, is our newspaper CashFlow Express, which is directly distributed at
our live expos and mixers, and at selected real estate events that we support
and sponsor around the country.
For the rest of the year, in addition to expanding our calendar of live ex-
pos, we will continue to expand our media and marketing company with spe-
cial print supplements and new online websites. We just completed our first
Private Money 411 Special Supplement and are starting the second! It is our
mission to be an all-encompassing resource of information for investors. In
closing, I’d like to add that if we can assist you in any way, or if you have any
feedback on our publications or events, please let me know. Your suggestions
and comments are always welcomed.
LindaPliagas
Contact us: 310.499.9545 or info@realty411guide.com
Be Social and Receive Regular Updates from Me on:
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DISCLOSURE AND INFORMATION FOR READERS AND EXPO GUESTS
The publications, events, expos and mixers promoted by Realty411guide.com and/
or their owners, employees agents and affiliates (collectively “411”) are for informa-
tional and entertainment purposes ONLY. The information and presentations provided
therein do not constitute an offer or solicitation to buy or sell securities or real estate.
Please be aware that real estate investing is VERY RISKY. 411 is not responsible for
any of the information provided and/or statistical data presented, and do not reflect
the opinions, advice or research of 411. You personally are 100% responsible for your
due diligence, for all investment information and for all decisions with respect to
any potential investment or transaction. 411 strongly recommends that you seek the
advice of your trusted attorney, broker, CPA and/or financial adviser before investing.
CashFlow Express is published in Santa Barbara County by Realty411. © Copyright 2013. All Rights
Reserved. Reproduction without permission is strictly prohibited. The opinions expressed by writers and
columnists are not endorsed by the publishers and/or editorial staff. Before investing in real estate,
stocks, bonds, mutual funds, gold, or securities, seek the advisement of a trusted financial advisor,
attorney or tax consultant. Investing in any asset and market sector is risky business and may result in
the loss of capital. Please invest responsibly. PRINTED IN THE USA ~ GOD BLESS AMERICA
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— this was the most common sur-
veyed response for home buyers in
2014. And it's true. If a homebuyer
does not buy a home with solar on
it, the odds of them getting it in-
stalled after the fact, are especially
high in inland areas and areas
where there are larger cooling and
heating consumptions.
This essentially presents a great
opportunity for REALTORS® and
investors. Investors are quickly re-
alizing the capital gain from their
solar investments. With a very
small percentage of homes (un-
der 5% nationwide) having solar,
there are still
government
incentives in place to incentivize
property owners to help alleviate
the dependency on fossil fuel by
incorporating renewable energy.
These incentives are offered on
the state and federal level, with
many states maxed out already on
the state rebates. This has helped
to increase solar installations by
40% in the last couple years and
with the 30% federal credit dis-
solving in 2016, it's no wonder
there is a sense of urgency.
L
ately, I am sure you have heard the word
solar mentioned often. With the rising
costs of electricity (raised at least once per
year), it isn't a surprise that more and more
interests in the solar industry are trending on Twitter
and Google search feeds. This past summer home-
owners with non-solar homes reported their outrage
and concern due to their electricity bills pouring into
the $200-$600 range. And it's only going up.
Energy efficient and alternative energy homes are
now being manufactured by developers looking to
get ahead of the curve on the ever-booming indus-
try. "Why buy the house that doesn't have solar on
it when I can buy one that comes with it, installed
and ready to use when I move into my new home?"
When presented with the option of solar or no solar
Investors have multiple options:
1. Buy and Hold #1: Buy the property, pur-
chase (not lease) their solar system for the home.
Collect 30% federal credit and move in and enjoy
the benefits of their solar system saving them
money right away.
2. Buy and Hold #2: Buy the property, pur-
chase (not lease) their solar system for the home.
Collect 30% federal credit and rent out the prop-
erty. They are the utility provider now, essen-
tially, and can charge their tenant the amount they
choose, for the use of the electricity or raise the
asking price for the rent to include electricity.
SOLAR - How REALTORS®
and
Investors Use it to Their Advantage
Continued on pg. 22
By Dave Franecki
>

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that one of the biggest mistakes he sees investors
making every day is “over paying.” He notes that
there are so many trying to get into to cash in on
flipping houses and the rise in values. He insists
you’ve got to “buy right” if you are going to make
it.
For Tarek this means knowing your numbers,
and personally for him demanding at least a 12%
net return on each deal.
On the future of the OC property market he says
that there is great reason to be bullish consider-
ing we are barely three years into appreciation of
a new growth phase in the market, and that more
conservative mortgage lending, and a high per-
centage of cash deals is creating a far stronger
foundation, which will insulate the market from
future fluctuations.
In summary; investors can do a lot to ensure
their ongoing success in flipping California hous-
es, but need to be prepared to put in the work, and
be willing to invest in learning.
El Moussa says that to build in sustainability and longevity this time
around he is acquiring “income producing assets,” and is diversify-
ing into new companies and ventures including “TV, seminars, real
estate sales, flipping houses and even the construction business.”
Tarek El Moussa also says he dedicates a lot
of time just getting to know the local market and
prices. While many investors have been indoctri-
nated to believe the MLS and REALTORS® are
their arch enemies, Tarek suggests investors get
access to the Multiple Listing Service and obtain
their real estate licenses.
Another strategy billionaire investor Mark Cu-
ban and real estate flipper El Moussa have in com-
mon is diversification. Cuban has invested in a va-
riety of startups, including real estate data service
Motionloft.
El Moussa says that to build in sustainability and
longevity this time around he is acquiring “income
producing assets,” and is diversifying into new
companies and ventures including “TV, seminars,
real estate sales, flipping houses and even the con-
struction business.”
On the Sizzling
California Real Estate Market…
Of the hot California housing market Tarek says
left goes to power generation and, in the win-
ter, that’s a smaller percentage. This caused the
price of gas to double in each of the past two
winters. The market response to this bottleneck
can be seen in average wholesale natural gas
prices, causing sudden spikes on the so-called
spot market during the coldest days. In south-
ern and central Maine, business customers will
see their electricity rates jump from 6 cents per
kilowatt hour in October to 15 cents in Janu-
ary to 11.5 cents in March. The country just
experienced the coldest winter in a century. This
winter is expected to be the same and the supply
and demand cycle continue to worsen with the
pricing continues to increase.
The Solution: Hydro Renaissance —
A Profitable Opportunity
The leaders of our country recently endorsed
the use of hydropower as a viable renewable,
sustainable, and alternative energy resource with
the passage of the “Hydropower Regulatory Ef-
ficiency Act of 2013.” This legislation encour-
ages the modification of current sites, thus
boosting hydropower production, increasing
efficiency, and reducing environmental impacts
of hydropower. No one believes gas will stay
low forever, thus, this is exactly the right time to
invest in hydro. There is a large up-front capital
cost, but once built, hydro power assets are near-
ly pure profit. No fuel, little maintenance, and
little labor expense. Hydropower plants capture
the energy of falling water to generate electric-
ity. A turbine converts the kinetic energy of fall-
ing water into mechanical energy. Hydropower
is consistent and profoundly efficient, with low
Co2 output and zero greenhouse gas emissions.
This innovative source of electricity works to
keep our environment clean, while producing a
renewable and sustainable source of energy.
DownEast Hydro, LLC, a Maine based compa-
ny, provides the renewable energy market with a
fresh, environmentally sound, fish and wildlife
safe approach to small-scale hydroelectric gen-
eration. It supports the various environmental
interest groups and develops parallel construc-
tion of fish passages at the power stations, while
achieving a positive return on investment.
Currently DownEast Hydro sees energy
potential in old hydro dams and is focusing on
developing five small existing Central Maine
hydro sites. When fully operational, they will
provide enough electricity to support 2,100
Mainers for one year, just a fraction of Maine’s
15% hydro capacity. The long-term goal is to
acquire, develop, and manage additional small
sites in Maine, New Hampshire and Vermont.
Based on 30 years of flow data measured on
site at each dam, the company is able to offer
dependable estimates to potential electricity cost
to buyers and a sensible business plan for inves-
tors.

For investor inquires and questions or to con-
tact the author, Dave Franecki, visit:
http://downeasthydro.com/opportunity
Hydropower plants capture
the energy of falling water
to generate electricity. A
turbine converts the kinetic
energy of falling water into
mechanical energy.
TV’s Favorite Fix and Flip Family, pg. 1
Green Energy Creates Investor Opportunities, pg. 3

Realty Mogul
Funds Institutional
Quality Property
Realty Mogul, the online real estate
capital platform connecting accredit-
ed and institutional investors to real estate
investment opportunities, announced
today that it has successfully crowdfunded
the Lakeside at Town Center Apartment
complex in the Atlanta suburb of Marietta,
GA. Realty Mogul’s accredited inves-
tors contributed over $1.2 million through
its online crowdfunding platform to help
purchase a portion of the interest in this
apartment complex from Arenda Capital
Management, the project’s sponsor.
“This transaction involved our first
funding of a ‘Class A’ property, mean-
ing one of the highest quality buildings
in the local market area,” said Jilliene
Helman, CEO of Realty Mogul. “These
properties are typically highly valued by
institutional investors, and it’s infrequent
that individual accredited investors are
able to participate in such opportunities.
We were proud to work on this transaction
with Arenda Capital Management, which
had earlier partnered with Loma Linda
University to purchase the property.”
Built in 2001, the property is a 358-unit
apartment community comprised of 14
garden-style apartment buildings along
with a clubhouse/leasing center, several
garage/storage buildings, swimming pool,
tennis court, playground, fitness center,
cyber café, and car wash facility. The
390,594 square foot property is already
at 95% occupancy and is located near the
huge Town Center Mall, a number of cor-
porate office parks, and Kennesaw State
University, one of the fastest growing
Crowd
Funding
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Incorporating Services Continued on pg. 26
>

FirstKey Lending revolu-
tionized the real estate
market for entrepreneurs
investing in residential
rental properties when it
began offering its one of a
kind single-property loan
product earlier this year.
A fully amortizing 30-year
fixed rate loan with com-
petitive rates and no pre-
payment penalty.
FirstKey’s Express single-property loan
product offered entrepreneurial landlords the
ability to manage their cash flow by avoiding
interest rate risk and large balloon payments
at the end of the loan term.
“We saw immediate demand for our
Express property loans,” says Randy Reiff,
CEO of FirstKey Lending.
But, as a market leader, FirstKey is com-
mitted to making it even easier to invest in
one- to four- family rentals and is constantly
innovating to provide additional financing op-
tions to current and prospective customers.
Responding to the success of its Express
property loan product, FirstKey recently
made significant enhancements to the Ex-
press program to bring the benefits of this
unique product to entrepreneurial customers
who own portfolios of more than 10 proper-
ties.
FirstKey is now also offering 30-year fixed
rate solutions for portfolio loans of up to $5
million dollars with no restrictions on the
number of properties financed. Like the sin-
gle property loan, these portfolio loans have
no prepayment penalties, making them even
more attractive for entrepreneurial investors
who want to lock in long-term financing but
maintain flexibility to sell assets or manage
their investments.
“The needs of entrepreneurial investors
are not necessarily the same as institu-
tional investors. With the introduction of this
product, we are giving customers who are a
bit less rate-sensitive the ability to choose a
long term, fixed rate solution with complete
prepayment flexibility,” said Reiff. “Recogniz-
ing that the needs and aspirations of entre-
preneurial borrowers might change over time
is what inspired the original 30-year property
product, and we are now thrilled to make it
available for customers who want to borrow
up to $5 million against their multi-property
portfolios.”
FirstKey was the first national lender to
target entrepreneurial borrowers in the rental
finance space and has prided itself on innovat-
ing a wide variety of programs meant to make
it easier to invest in the SFR market.
For FirstKey, it’s not just about the bor-
rower’s credit score, but the strength of the
borrower’s investment. FirstKey looks primar-
ily at the property’s value and the cash flows
to determine the investment’s ability to service
and ultimately repay the debt. This evaluation
model can make FirstKey’s financing products
accessible to a wide range of customers.
For entrepreneurial investors more interest-
ed in optimizing rate than term, FirstKey con-
tinues to offer Express portfolio loans under
$5 million for 5, 7 or 10 years at some of the
lowest fixed rates available in the SFR space.
FirstKey’s wide range of products also in-
cludes options for many other types of inves-
tors. Premier provides non-recourse loans
from $5,000,000 to $500 million to mid-size
and institutional rental investors. For entre-
preneurs more focused on fixing properties
and selling them, FirstKey also offers loans
for rehab projects between $100,000 and
FirstKey Lending
Continues to Innovate
Makes 30 Year Loans Available
to Portfolio Borrowers
$1,000,000 through its Fix & Flip program.
“We are proud to continue innovating
and improving our market-leading products
to serve the unique needs of our entrepre-
neurial and institutional investors,” said
Reiff. “Whether one property or 10,000, our
suite of SFR finance products provides a
variety of solutions to the entire spectrum
of investors.”
FirstKey continues to simplify the logis-
tics of all its programs, streamlining the
documentation process and increasing
the ease of closing. These efforts make it
easier to manage expenses and navigate
the process for customers who may be fi-
nancing their investments for the first time.
FirstKey is backed by Cerberus Capital
Management L.P., one of the country’s
largest private investment funds, giving it
the resources it needs to continue advanc-
ing in the market. FirstKey management
said the recent moves were an effort to
continue offering exciting new options and
the value that its customers have come to
expect.
“With the introduction of this product, we are giving
customers who are a bit less rate-sensitive the ability
to choose a long term, fixed rate solution with
complete prepayment flexibility,” said Reiff.
By Lori Peebles

P
art of the challenge
for every business
owner, no matter the
industry, is balanc-
ing the daily needs of
your business with a long term
growth strategy. This is also true
for entrepreneurs working in the
probate industry. Taking the time
to set investment goals will help
you to grow your business over
the long term.
While this may seem like common sense,
very few probate entrepreneurs take the time to
set actionable goals and then track their prog-
ress. Simply put, they get too focused on the
urgent and immediate needs of their business,
whether it is responding to an email or taking a
phone call, and don’t look to see if each of their
actions helps them to move their business for-
ward toward growth that builds profit. Taking
the time to set probate investment goals is the
single most important action you can take for
your business as it virtually guarantees busi-
ness growth and profitability.
Probate Offers
Exceptional Opportunities
Unlike other industries, there are opportunities in
probate that allow investors to meet their finan-
cial, business and personal goals easily. Before
an investor takes the time to create and devise
action plans for business goals, it is important to
note that the probate industry encourages success
with the way that it is structured. Executors, by
the very nature of their job, are always interested
in finding easy ways to complete the sale and
distribution of assets to the heirs as dictated by
the court. In the probate business, this means
that of the estimated 100,000 probates filed each
month in the United States, there are many, many
options for real estate investors. These opportu-
nities include discounts on commercial, residen-
tial and vacation home properties – many times
of up to 50% off of current market rates. This is
due to the need of the Executor to develop a cash
flow that can take care of medical, funeral, tax
and other bills.
What does this have to do with setting
goals? It means that taking the time to set goals
for a probate real estate business is even more
beneficial. Since the environment around the
probate real estate industry is so favorable,
investors can more quickly achieve well-set,
actionable goals.
Grow Your Business
with Goals
One of the first steps in building, or rebuilding,
your business is to spend enough time preparing
to enter the market. Kurt Carlton, in his article about
setting real estate investment goals, said, “The most
important step for any individual that may be looking
to get started in this niche market is proper prepara-
tion. This avenue of investing is not like buying a
CD or a bond and putting it in your bottom drawer.
If you buy a home and check on it a year later, it will
not provide you with a small return and no head-
aches. On the other hand, if you tend to it and can
play an active role in nurturing the home, it does
stand to provide far greater returns on your money
and opens a lot of doors to access tax benefits.”
Clearly, real estate is an excellent investment if you
take the time to adequately prepare yourself and your
business.
Understanding where you’d like to go with your
probate real estate business is critical. There are
many benefits to a real estate business – including
long term income, equity built into homes, commer-
cial properties and vacation homes, and quick sales
that can generate profits and allow you to have cash
on hand. Some probate investors choose only one of
these paths, and some choose to take advantage of
many of them. In order to pursue these goals, it is
important to do planning prior to taking action.
Overall, taking time to set goals for your business
will help you to be more effective and efficient. A
recently written article on goal setting said, “Studies
have shown that you will save ten minutes in execu-
tion for every minute that you invest in planning or
goal setting. What an incredible return on your in-
vestment of time. How often would you invest in an
investment where you put in a dollar and gotten dol-
lars back?” If you want to see your probate business
grow, then taking the time to set goals is critically
important.
Setting Effective Goals
So many people set goals for their personal lives and
their businesses each year. Just think about all of
the people that set New Year’s resolutions and then
never complete their dream. Whether the goal of
your probate business is to build short-term income
or develop a long-term investment portfolio, there
are effective ways to set goals that will help you to
achieve them.
The most effective goals are set using the
SMART process. Phil Putejovsky believes that it is
critical that goals are defined in terms of outcome.
He said, “A huge error in setting real estate goals is
not describing the result clearly. Be specific. ‘Doing
my first deal,’ is NOT a descriptive result. In fact,
doing a deal is not the goal at all. Instead, making
money is probably the goal because you can do your
first deal and lose $10,000! Losing money is typi-
cally not what a budding real estate investor means
Setting Probate Investment Goals
that will Grow Your Business
Unlike other industries, there are opportunities
in probate that allow investors to meet their
financial, business and personal goals easily.
By Leon McKenzie, US Probate Leads

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by a ‘deal.’ Instead of ‘doing my first deal,’ perhaps
the description of the result could read as, ‘Buy my
first positive cash flowing rental property that earns
at least $200 per month without having to use my
own cash or credit to acquire the property’ or ‘Close
my first deal and earn $5,000 or more in net profits
after all expenses.’” Knowing what a successful result
is helps an investor to determine the steps needed in
order to accomplish the goal.
Another critical aspect to setting goals in the
probate investment business is that they are time
sensitive. If an investor sets a goal to “make money
this year,” it not only doesn’t describe exactly what
the goal is – in other words, how much money? – but
it also doesn’t give it a specific time frame. A year
can be a long time in business and a lot can happen.
Regarding time-specific goals, Carlton said, “They
have a time by which you need to accomplish them
by. They also have interim steps along the way that
can be monitored. These sub-deadlines or schedules
are critical to success. There are no unrealistic goals;
there are merely unrealistic timeframes.” In other
words, if you want to build a probate business that has
two million dollars in holdings, it can be done, but it
may not be able to be done overnight. This is a case
where setting goals in terms of phases can be even
more important.
The goals an investor sets for their probate real
estate business should also be challenging. The
writers at Real Estate Champions say, “Goals need
to challenge you to capacity or beyond your current
capacity. They will stretch you and mold you into a
new person. Jim Rohn wisely said, ‘It’s not the money
that makes the millionaire successful; it’s what he had
to become (as a person) to earn a million dollars.’ If
you took the money away from that millionaire that
millionaire, would make it back twice as fast as be-
fore, because he learned the skill to make it in the first
place.” As a probate investment business grows, the
person running the business grows in knowledge and
ability as well. This is the reason that setting chal-
lenging, big goals is critical. The other reason to set
challenging, big goals is that they are entirely attain-
able in the probate industry. As discussed earlier, the
probate industry is rife with opportunity that cannot
be seen in other areas of real estate. In fact, investors
have the upper hand in the probate real estate market
since Executors need to sell properties in order to get
the cash needed to close the probate.
Ask Questions to
Develop Action Plans
As investors set their goals, they also need to develop
the actionable part of the process. While many inves-
tors may say, “I would like to make $100,000 dollars
this year,” figuring out how to get there is the hardest
part of the process. This indicates the need for an
action plan. Exactly what needs to be done to achieve
a goal? Take time to think through the process by
asking excellent questions.
If an investor wants to net $100,000, here are just
a few of the questions that can be asked to develop an
action plan:
•How much income do I need to make gross in
order to net $100,000?
•Do I want to make that money in rental profit or
in buying and selling homes or by using a combina-
tion?
•What roadblocks do I see ahead?
Thinking through the process in terms of ques-
tions provides the environment for a much more cre-
ative problem solving process for probate investors.
What If Goals Aren’t Met?
Just like New Year’s resolutions, there are many times
that goals aren’t met in probate. Does that mean
Continued on pg. 25
>

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Invest With Us
For Accredited Investors
CONFIDENTIALITY&DISCLAIMERNOTICE THISEXECUTIVESUMMARYISINTENDEDONLYFORTHEUSEOFINDIVIDUALORENTITYTOWHICHITIS ADRESSEDANDMAYCONTAININFORMATIONTHATISPRIVILEGED,CONFIDENTIALANDEXEMPTFROMDISCLOSUREUNDERAPPLICABLELAW.THISINFORMATIONDOESNOTCONSTITUTEANOFFER,ORTHE
SOLICITATION OFAN OFFER, OFANYINVESTMENT. SUCH OFFERSARE MADE ONLYBYTHE PRIVATE PLACEMENTMEMORANDUM(S) RELATEDTO SUCH INVESTMENTAND ONLYTO PERSONSAND IN CIRCUMSTANCES INWHICH SUCH OFFERS MAYLEGALLYBE MADEWITHOUTVIOLATION OF U.S. FEDERALOR STATE SECURITIES LAWS ORAPPLICABLE LAWS
AND REGULATIONS.ALLPOTENTIALINVESTORS MUSTREADTHE PRIVATE PLACEMENTMEMORANDUMAND NO PERSON MAYINVESTWITHOUTACKNOWLEDGING RECEIPTAND COMPLETE REVIEWOFTHE PRIVATE PLACEMENTMEMORANDUM.THE PRIVATE PLACEMENTMEMORANDUM CONTAINS DETAILED INFORMATION INCLUDING RISKS, CHARGES
AND EXPENSES.THEREARE RISKS INVOLVEDWITH INVESTING IN REALESTATE, INCLUDING POSSIBLE LOSS OF PRINCIPAL. PASTPERFORMANCE IS NOTAN INDICATION OF FUTURE RESULTS.THE INFORMATION CONTAINED HEREIN IS NOTTO BE CONSTRUEDAS INVESTMENTADVICE.THESEARE HIGHLYSPECULATIVE INVESTMENTSAND INVOLVESAHIGH
DEGREEOFRISK.READTHEPRIVATEPLACEMENTMEMORANDUMCAREFULLYBEFOREYOUINVESTORSENDMONEY.ALLINVESTORSMUSTMEETSUITABILITYREQUIREMENTSASSTATEDINTHEPRIVATEPLACEMENTMEMORANDUM(S).ANYPROPERTIESDEPICTEDHEREINAREFORILLUSTRATIVEPURPOSESANDARENOTOWNED,SECURED,INTENDEDTO
BE SECURED, OR INTENDED TO BE ACQUIRED BY THE FUND(S) OR MONDAYONE, LLC. NEITHER THE SEC NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THE SHARES IN THE FUND(S) OR PASSED UPON THE ADEQUACY OR ACCURACY OF THE PRIVATE PLACEMENT MEMORANDUM.
Multifamily Development in North Dakota -
Taking Advantage of the Oil Boom and
the Highest Rents in the Nation
E
very morning I wake up excited, and
that energy keeps going throughout the
day. Why? Because of what I see as the
greatest opportunity in my 24 years of business
life: Building housing for the oil workers in
North Dakota. As a numbers-driven decision
maker, here are the facts that I see:
Oil production is growing – Three
years ago North Dakota was producing 100,000
barrels of oil per day. Today production is up to
1,100,000 barrels of oil each day.
Bakken oil is a geopolitical
game changer – In December 2012 the
U.S. became the second largest oil-producing nation in the world (behind Saudi
Arabia). In just three years the U.S. will be in a position to stop importing oil
altogether. We can keep our dollars here, and our economy will no longer rely
on OPEC’s whims.
Full build-out is years away – It will take 60,000 plus oil wells to
extract all of the Bakken oil. Currently there are only 10,500. But no matter how
Real Estate and the
North Dakota Oil Boom
Continued on pg. 26
By Kenny Dewan, CEO MondayOne
fast they drill new wells, the most the oil companies can get is about 2500 wells
per year. This is why it is estimated that it will take about 20 years for the oil
fields to fully develop.
Housing is the oil companies’ biggest challenge – There are currently over
22,000 oil workers living in “man camps.” This is in addition to the man camps
that are housing workers from service-related companies. Many, if not most,
of these workers would move their families to the area if appropriate housing
was available – but it’s not.
A drawing of a MondayOne multifamily development.

I
have been speaking
and teaching about the
many benefits of using a
Land Trust to hold title to
investment real estate for
the last 15 years. Person-
ally, I have been using
Land Trusts for over 35 years
and continue to discover new
and creative ways to benefit from
their use. You literally could not
GIVE me a piece of real estate
if I had to hold title in my own
personal name…it’s not worth
the risk! Yes, I use LLCs too, but
NOT TO HOLD TITLE to rental
real estate.
Instead of me telling you about
the benefits of using Land Trusts,
this article will be about my stu-
dents and how they came to use
Land Trusts for privacy, asset
protection and profits. The first
story begins with a phone call to
me from a prospective student
(Jim) who wanted to learn how
to create his own Land Trusts. I
asked Jim why he was interested
in creating his own Trusts. He
answered by telling me that he
owned 1,500 oil and gas leases
and some of them go “boom”
and some of them go “bust” and
he thought my advice of putting
each piece of real estate (leases
are included in what can put in a
Land Trust) into its own separate
Trust was good advice. He went
on to tell me that he did not want
one or more bad leases to affect
the good producing leases and
he could see a huge benefit in
not aggregating all of his leases
in one entity (or his own personal
name).
Jim also understood that if he
had to pay someone to create
1,500 Land Trusts it would cost
him a fortune. So, learning how
to create his own Trusts would
save him thousands of dollars
(and he would probably end up
with a more personalized Trust
anyway).
~~~~~ 2 ~~~~~
My second story comes from
(Sue) in Florida. I received a call
one breezy afternoon from this
landlady in Florida. She told me
that she needed to get my home
study course as “quick as pos-
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sible.” I asked, “What’s the hurry?”
She went on to tell me that she
owned seven rental properties plus
her personal residence. One of her
male tenants was “interested” in her
and she was NOT interested in him.
One of her tenants called her to tell
her this guy came to her house look-
ing for Sue (and it sounded like he
was visiting each of her properties
trying to find out which one was her
personal residence!). He had merely
looked up Sue’s name in the public
records and found all the properties
she owned! Wow, who would ever
think that a Land Trust would help
you avoid a stalker?
Sue had learned a quick les-
son in not holding title to ANY real
estate in your own personal name.
There are just no advantages…only
disadvantages! Now, Sue wanted to
learn how to create her own Land
Trusts quickly and at no cost so she
could get those properties out of her
name. Since I have very few women
staking me these days, I was glad to
learn of another reason to use Land
Trusts.
~~~~~ 3 ~~~~~
Our third real-life story comes to
us from San Francisco. I teach a
live seminar at least once a year
in San Francisco to educate real
estate investors on how to create
their own Land Trusts. Holly was a
student in one of these seminars
over two years ago. Like many, Holly
loved the idea of using a Land Trust,
but never took the time to actually
transfer title out of her name and
into the Land Trust. Holly called me
last week and said, “I have got to
get this property out of my name
fast.” As usual, I said, “Why?” Holly
went on to tell me that her tenants
had contracted cock roaches and
called the city inspector to complain.
In addition she was having to go to
court the next week over some other
“personal issues” and felt that she
would be better off not holding title
to the investment real estate (with
everyone in the world knowing that
she was the owner). While Holly’s
situation was more complicated than
some of the other stories in this ar-
ticle, it served as an example of not
waiting until your house is on fire to
buy home owner’s insurance! Many
people think that asset protection
planning is just for the paranoid. Or,
that they will wait until the wolf is at
the door before taking action. Logic
tells you otherwise.
It is always best to plan ahead
and get those properties out of your
name NOW (and take title to all
future properties directly from the
seller to your Land Trust).
~~~~~ 4 ~~~~~
The fourth story comes to us from
Illinois. Aaron was a student of mine
from 2002. He learned from me how
to create his own Land Trusts and
he took action! Aaron put all three
of his rental properties into separate
Land Trusts AND put his personal
residence into a fourth Trust. Subse-
quently, Aaron fell on hard times. He
lost his job, got divorced and slipped
into foreclosure on his personal
residence.
Because Aaron had put his resi-
dence into a Land Trust the lender
took four years to foreclose! The
lender had to find and serve Aaron’s
Trustee (in addition to all other par-
ties to the foreclosure lawsuit) who
lived out of state. Placing your prop-
erty into a Land Trust will not stop a
foreclosure, but it will slow it down.
I do not advocate foreclosure or
the delay of foreclosure. In fact, I do
not teach people how to use Land
Trusts to take advantage of others.
Land Trusts are designed to protect
YOU from unscrupulous people who
5 Stories
Land Trust
5 Stories
Land Trust
Continued on pg. 21
By Randy Hughes,
“Mr. Land Trust”

advertising

I
t’s no secret that real estate is a tax-
friendly investment. There are not many
investments that offer the tax advantages
that real estate provides. Now, I’m no
hater of Wall Street. I feel that diversity is
important to any portfolio; but when it comes to
taxes, real estate has many other investment
vehicles beat.
Buying an apartment building allows your
tenants to pay down your mortgage while
building equity with little to no tax burden. Here
are some of the tax strategies that make apart-
ments so investor-friendly.
The beauty of depreciation is that an inves-
tor can show a loss that can dramatically lower
their taxable income on their investment prop-
erty. There are further depreciation that can
be taken through furniture, fixtures and equip-
ment. (Standard Disclaimer -> I am NOT an
accountant, so make sure that you check with
your accountant for proper declarations.)
The proceeds that come from refinancing
your property are also tax free. This is an exit
plan that many of our clients use; reinvesting the
refinanced portion into another, larger deal.
Many of our investors have used a 1031 ex-
change. This allows you to sell a property and
reinvest the proceeds deferring all capital gains
taxes. There are many specific IRA guidelines
that need to be adhered to, including a nar-
row time window; but the investor will be able
to defer their taxes for as long as they hold that
investment! Make sure that you work with a 1031
specialist, as the guidelines are very specific and
must be followed to a “t”.
Investing through an IRA, specifically a self-
directed IRA, is how we were able to raise $17
million of private money. This money is already
earmarked for retirement, making it the perfect
way to allow an investor to get started investing in
real estate. Becoming well versed in self directed
IRAs will allow you to educate your potential in-
vestors if you’re looking to syndicate larger deals
and raise private capital for your own projects.
Tax benefits are just one of the benefits of
investing in apartments. Economies of scale
(lot of beds under one roof), burgeoning demo-
graphics, and an attractive lending climate, all
make investing in apartments one of the fast-
est ways to secure your future.
Whether you are just starting out and want
to create a legacy for your family, you have
done some single family deals and want to
scale your real estate business faster, or have
done some deals and want to syndicate larger
deals and bring in investor dollars, investing in
apartments is the path to true security.

For more information, please visit online at:
http://URSCapitalPartners.com as well as
http://EliteApartmentCoaching.com
By Christopher Urso, URS Capital
Partners Elite Apartment Coaching
The beauty of depreciation is that an investor can
show a loss that can dramatically lower their
taxable income on their investment property.

By Carl Schiovone, Director of the
East Coast Real Estate Investors Association
P
roperty rehabbing and flipping
continues to be an ex-
tremely popular business
model among experi-
enced investors as well as nov-
ice investors with no prior real
estate experience. The single
motivational factor causing this
buzz may be hard to put your
finger on, however, there are a
number of contributing elements
that led to this frenzy, including
the many television shows dem-
onstrating how easy it is to have
a big payday. What they don’t talk
about is the inherent risks involved. As
another motivating factor is the poor performance
of traditional Wall Street investments and many
insecure with their job and career growth potential.
However, like any business venture you are con-
sidering, success requires an understanding of the
challenges and barriers you will have to overcome;
this realization must come early in your business
implementation. At the core of all successful busi-
nesses are a comprehensive business plan, risk
mitigation strategies, and a competent professional
support team that will assist you through your busi-
ness decisions.
In the following section, we will touch upon some
of the most important things you will need to con-
sider to be successful in this business model.
Have Your Capital Budget in Place
One of the most fundamental variables of pur-
chasing your potential flip property is how much
capital you have to invest. Generally, this “Capital
Budget” will determine what markets you can af-
ford to be in and will be at the core of establishing
your investment criteria. In recent years, even as
the lending institutions are creating more attractive
loans for investors, submitting all cash offers con-
tinue to provide the real estate investor additional
leverage over a conventionally financed offer. In
many cases, cash offers will be necessary in order
to compete with the other offers that are also being
considered. From the prospective of the seller, an
all cash offer can eliminate the risks associated
with the loan being rejected due to the condition
of the property, low appraisal, or the qualifications
of the borrower, In addition, with an all cash offer,
Title can typically close much faster and for some
sellers that may be worth taking even a lower cash
offer over a bank financed offer.
Picking the Right Location
Knowing your targeted market area is essential for
you to feel confident you are investing in the right
location. Having a pulse on the local economic and
real estate market conditions will go a long way
in selecting a location buyers want to move to. In
addition, having a thorough understanding of your
investment area and sales prices will help you set
the stage to understand if opportunities presented
to you are in fact a solid deal. One of the best ways
to gather information on your intended investment
locations is to enlist the help from a local real
estate professional.
Picking the Right Property
As a rehabber and flipper, you will need to select a
property that is desirable from the prospective of
the typical buyers in your targeted market
area. With this insight, it will make selling
the property at your expected price and
marketing time budget so much easier.
Your goal in selecting a specific
property is to either avoid as many
buyer’s objections as possible or cure
them as part of your rehab plan. A
buyer’s objection can be anything
that can cause the potential buyer to
walk away from purchasing the home
or to offer less than what you were
expecting.
Typical buyer’s objections can include:
• Small bedrooms
• Not enough bathrooms
• Adjacent or near retail or commercial buildings
• Small yard
• On a busy road
• Outdated kitchens and baths
• End of life for roofs, windows, HVAC, etc...
Buyer’s objections come in two forms, curable
(things you can fix) and non-curable (things you
can’t fix). Your goal as a successful property rehab-
ber and flipper is to select properties that have no or
minimal non-curable objections.
Determining Your Offer
In order for your rehab projects to be a financial
success, it is essential that you fully understand the
elements that must be considered when coming up
with your offers, these elements include:
• What will the home sell for when I
complete the renovations?
• What will be the cost of the improvements?
• How long will I need to hold the property?
• What are my holding and operating expenses?
• How much profit is expected?
• Legal expenses to buy and sell the property
(remember, you will have two closings).
• Marketing costs, including real estate broker
commissions to sell the property.
By considering the above elements, it will lead you
Rehabber and FlipperRehabber and Flipper
Continued on pg. 21
after
before

W
hat three words do you
hear most often when
asked what matters most
in a real estate purchase?
Location, Location, Location….
right? Well, I disagree.
If you bought a home in Stockton, California in
2006, you would be very disappointed in 2009 when
that property was worth 1/4th its value.
What do I think is the most important thing to
consider when buying property?
Market cycles
Back in 2006, we knew that California real estate
was in a frothy bubble. That’s why we advised our
members at Real Wealth Network to SELL Califor-
nia property and exchange it for properties in more
affordable markets.
How did we know it was a bubble? Simple: Af-
fordability. The average person could not afford the
average property in California in 2006, without the
help of crazy stated-income or negative amortiza-
tion loans. Of course, those loans would inevitably
adjust and the borrower wouldn’t be able to afford
the higher payment.
At that time, I advised a woman who owned three
properties in Stockton to sell and exchange those
homes for properties in Dallas, Texas. Dallas real
estate was actually undervalued by 26% at the time.
In fact, salaries were increasing much faster than
home prices, unlike California.
She listened to me and sold each Stockton property
for about $420,000 and was able to exchange them for
nine cash flow homes in Dallas.
She had been receiving $1,200 rent on the California
properties and was elated to discover she could get the
same rent on her new properties, and effectively triple
her monthly income! This gave her the extra income
she needed to retire.
Keep in mind that the California properties were
old, in high-crime areas and in need of repair. The
Dallas properties were brand new, in middle class
neighborhoods near high-paying jobs and good
schools.
Just a few years later when the credit crisis hit,
the Stockton properties she sold were worth about
$100,000 each. Instead of losing 1/4th her net worth,
she tripled her monthly income and saved her nest
egg.
Real Wealth Network has been helping thousands
of investors nationwide understand market cycles in
order to avert disaster and build sustainable wealth.
I am concerned that today we may be facing another
bubble in California. Home prices are well above 2006
levels in many California markets (and we KNOW
that was a bubble year), yet salaries have not exceeded
2006 levels.
That’s why, once again, we are advising people to
sell their high-priced properties and exchange them for
high cash flow...
ANOTHER RECENT SUCCESS STORY
One of our members, Cindy, inherited a home in San
Francisco that was in poor condition and needed lots
of work. It was a tear down, essentially, but it was still
worth $800,000. (Yes, San Francisco prices…)
Cindy decided to list it this past summer for $1.3
million to see if she’d get an offer. Sure enough, she
and her husband received an ALL-CASH offer for
$1.45 million, and they closed in 10 days!
While this was exciting, it also meant they had 45
days to identify new properties or they would face
enormous capital gains. Fortunately, they had been
attending Real Wealth Network events and listening to
weekly market updates.
At Real Wealth Network, we search the country for
affordable markets that are experiencing both job and
population growth. Once we identify those locations,
we search for the best real estate teams who can pro-
vide our members with turnkey properties.
“Turn-key” means the real estate company purchas-
es the property for a discount, renovates it to like-new
condition, places a qualified tenant, and offers on-
going property management.
We referred Cindy and her husband to our favorite
turn-key property providers in Indianapolis, Houston,
Cincinnati and Jacksonville, FL.
They couldn’t believe they could
exchange their ONE San Francisco
property for TWENTY cash flow
properties… and their monthly
passive income went from zero to
$20,000 per month!
PLEASE NOTE: Not all companies
who say they are turn-key really are.
In fact, most never make it through
our rigid screening process. Whether
you have a property to exchange or
you simply want to get started as
a real estate investor, we have the
resources you need.
You will have access to our weekly
market updates, strategy sessions,
live events, and property tours.
And most importantly, we would be
happy to refer you to our member’s
favorite turn-key property providers
in Dallas, Houston, Chicago, India-
napolis, Cincinnati, Pittsburgh, Jack-
sonville, Tampa, and in the booming
oil state of North Dakota.
Simply visit www.RealWealthNetwork.
com to get your FREE membership.
- Another Real Success Story -
Real Wealth Network Member
Goes From $0 to $20,000/Month
Income in Just 6 Months

Getting Started as a Rehabber, pg. 19 Five Land Trust Stories, pg. 15
would try to take your hard earned assets away
from you (without cause).
~~~~~ 5 ~~~~~
My fifth and last story is a personal one.
Thirty five years ago a friend of mine and I pur-
chased a shopping center. I insisted on placing
the title to the property into a Land Trust. The
property has remained in the same Trust for all
of this time. My friend moved to Florida and be-
came a high roller in the real estate investment
game. He made lots of money until the crash of
2008. Then, he lost lots of money.
Last month I was reading my local Recorder’s
Office publication that tells me about anyone
who has had a lien filed against them in my
county. Sure enough, there was my friend’s
name. A judgment lien for $3.4 million dollars!
Why was this lien filed in my county instead of
the county where my friend lived in Florida? I
am sure they also filed on him in Florida but the
creditor assumed since my friend use to live in
my town that he may still own real estate there
and they wanted to “tie it up” with a lien.
While I felt bad for my friend, I leaned back
in my chair…stared out the window of my office
and thought, “I sure am glad I insisted on put-
ting our shopping center in a Land Trust.” If we
had not used a Land Trust to hold title to our
property, the lien against my friend would have
sucked ALL the equity (his AND mine) out of our
shopping center, prevented us from selling or
refinancing and broke us financially!
Now do you believe me when I tell you to
NOT HOLD TITLE TO REAL ESTATE IN YOUR
OWN NAME? Can you see why it is not smart
to hold title jointly with anyone else on the plan-
et? Also, do not hold title in an LLC because
that just creates a nexus for a lawsuit. Put each
property into its own separate Land Trust…you
will be glad you did!
If you would like to learn more about how to
create your own Land Trusts, for FREE training
go to: www.landtrustwebinar.com/411 or email
me at: randy@mrlandtrust.net for my FREE
booklet, “50 Reasons to Use a Land Trust”
or contact me the old fashioned way by call-
ing 866-696-7347. (I actually answer my own
phone!)
to determine the Maximum
Allowable Offer (also re-
ferred to as MAO) you can
make. There are two ele-
ments that are at the heart
of most of the risk in this
business model, these ele-
ments are the cost of repair
(your rehab budget) and
the After Repaired Value
(ARV). In determining your
rehab budget, it is strongly
recommended that you
utilize a competent Contrac-
tor to help you establish
your budget and reserves
necessary. When trying to
determine your ARV, your
Real Estate Professional can
be a great asset and will be
able to provide you with
properties that are currently
on the market and that have
closed as a reference to compare
your property against.
Be Prepared for
Some Stiff
Competition
With the popularity of this
business model and the ex-
pectations of large invest-
ment returns comes some
very fierce competition;
this comes from a num-
ber of sources including
contractors who have the
skill and manpower readily
available, seasoned Inves-
tors that have developed
an efficient and repeatable
business model. Even new
investors with no prior
track record of success
can beat you to the closing table.
You may be wondering why a
novice would be your competi-
tion. In some cases, they may
not have prepared properly to
accurately determine a safe offer
price considering the elements
mentioned above and may offer
a higher price you can’t compete
with. However, the most influ-
ential competition you will ever
encounter is yourself! As a Per-
formance Coach, this is an area
that I deal with frequently. For
some novice investors, they can
get caught up in over-analyzing
deals to the point where they
may never get around to actu-
ally making offers or when they
do, it may have taken them so
long that the property has been
already snatched up by someone
else; this can be very discourag-
ing.
Learn What a Good
Deal Looks Like
As part of your skills develop-
ment plan, it will be essential
for you to master the process
of knowing how to evaluate
property candidates before you
starting making offers. Property
rehabbing and flipping can be a
very rewarding business venture,
but proper preparation and due
Faster, easier ways to save.
Welcome to the modern world.
Call 1-800-712-6050 to see how much
you could save on car insurance.
Not available in all states. Savings may vary.
diligence is required. Make sure you invest in your skills de-
velopment plan because the best risk mitigation strategy is one
where you actually know what your risks are and have success-
fully deployed your plan to mitigate them.
Carl Schiovone is Director of the East Coast Real Estate
Investors Association. He is also President of Carl Schiovone
and Associates Real Estate Coaching.
after
before

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