Realty411 Magazine - #LivetheLife featuring Lori Greymong - THE SOURCE FOR REAL ESTATE INVESTING

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www.realty411guide.com Vol. 5 • No. 3 • 2015 | A Resource Guide for Investors
Investor & Author
LORI GREYMONT
Enjoys Country Living
in Tech Silicon Valley
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Meet Industry Leaders
WEALTH Tips & Techniques
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contents
pg. 31
pg. 55
pg. 14
pg. 20
Realty411Guide.com PAGE 3 • 2015 reWEALTHmag.com
The Team from
Growth Equity
Group: Preston
Despenas (top) and
Brett Immel (left)
Photo right:
Pat James with
United States
Tax Relief
Randy Reiff,
CEO of FirstKey
Lending, LLC,
is our cover
feature for
Private
Money411
13 Publisher’s Note: Meet Us in Your City
14 Tax-Saving Strategies with Patrick James
18 Kathy Fettke Discusses Flipping
20 Growth Equity Group Offers Cash Flow
22 12 Rounds with Black Belt Investors
24 Notes: Turn Distress into Success
25 Win with Probate Real Estate
26 Lori Greymont Designs Her Perfect Life
31 Private Money411 with Randy Reiff
36 An Interview with Tim Herriage of B2R
38 Networking for Real Estate Investors
40 FirstKey Lending Continues to Innovate
44 Is Owning the Best Income Source?
46 Applied Business Software Expands
51 A Lesson in Real Estate Syndications
53 Is Having a Cat More Work than an IRA?
55 Luxury Rides for Realty Professionals
58 Special: What’s Wealth Without Health?
61 Investor Resources & Special Offers
64 Advantages of Solar Energy

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©Copyright 2015. All Rights Reserved. Reproduction without permission is strictly pro-
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IMPORTANT DISCLOSURE: Publishers and staff are not responsible for performing due dil-
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consultant. BEWARE: Real estate investing is risky and may result in loss of capital.
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T
hanks for joining
me once again on
another adventure
towards success
in real estate, business and
life. It is said that the only
thing that remains constant
is change. But change can
create unwanted stress. It
certainly can be a nail-biting
time trying to maneuver
around obstacles in our path.
One thing that remains
steadfast in this chaotic
world is our commitment to
serving our community with
key information about real
estate investing.
I feel it’s important to
pair our print issues with
networking events because
I know real estate is a
relationship-based business.
Building in-person connec-
tions can quickly uplift us to
new heights.
Many of our expo guests,
magazine subscribers, and
social media fans have met
individuals at our events that
have catapulted them to new
levels of success.
On a personal level, I know
the knowledge I’ve absorbed
at many events, not just the
ones we host, has greatly
enhanced my life.
The fact is: I can’t help but
improve my life when I’m
surrounded by such great
real estate investors and
industry leaders! Sharing
the day with individuals
who strive for success in all
aspects of life is electrifying.
The smiles that greet me
are so special and fuels my
energy to meet even more of
our readers in person.
As a matter of fact, last
year we reached more
people than any other com-
pany in our niche. We have
hosted events in spectacular
cities, such as: Indianapolis,
San Diego, Los Angeles,
San Jose, Santa Barbara,
Pismo Beach, San Francis-
co, Seattle, Phoenix, Las
Vegas, McAllen, Texas;
plus Manhattan and Long
Island, N.Y.
It’s truly an honor for me
to meet our readers across
the country and to experi-
ence all the cultural nuances
of our diverse nation. From
the East Coast dialects I
overhear as I stroll down
Midtown Manhattan, to
the Mandarin alphabet
characters I admire in San
Francisco’s Chinatown.
My work in the industry
continues to fascinate and
lead me to new places and
levels in life.
Thank you for being a
part of my journey. Enjoy
our new edition and please
let me know if we can assist
you in any way.
Linda Pliagas, Publisher
Photo: John DeCindis
Linda’s Letter
LindaPliagas
BIRMINGHAM,AL
Follow my industry updates and connect with me:

I
f the IRS audits a real estate investor, one of the
first things they look for is whether the investor is a
dealer or a real estate professional. Most dealers are
subject to passive activity loss rules that limit the
amount of losses from negative – cashflow real estate. If
however, the IRS designates you as a real estate pro-
fessional, you get to write off unlimited losses against
income!
RENTAL LOSSES FOR DEALERS
Here’s the basic rule about rental losses you need to
know: Rental losses are always classified as “passive
losses” for tax purposes. This greatly limits your ability
to deduct them because passive losses can only be used
to offset passive income. They can’t be deducted from
income you earn from a job or investments such as stock
or savings accounts.
Passive income is the income you earn from rental
real estate or other passive activities. An activity other
than real estate is considered passive if you don’t “mate-
rially participate” in it – that is, work at it for a minimum
number of hours each year – usually 750 hours. Passive
income does not include income from a job, a business
you actively manage, or investment income. Thus, for
example, you’d have passive income if you earn a profit
from one or more rentals.
Without passive income, your rental losses become
suspended losses you can’t deduct until you have suffi-
cient passive income in a future year or sell the property
to an unrelated party. You may not be able to deduct
Dealer VS
Real Estate
Professional
Deductions
taxes
such losses for many years. In short, your rental losses will be
useless without offsetting passive income.
EXCEPTIONS TO PASSIVE LOSS RULES
There are only two exceptions to the passive loss (“PAL”)
rules:
• You or your spouse qualify as a real estate professional, or
• Your income is small enough that you can use the $25,000
annual rental loss allowance.
• Property owners with modified adjusted gross incomes of
$100,000 or less may deduct up to $25,000 in rental real estate
losses per year if they “actively participate” in the rental activ-
ity. You actively participate if you are involved in meaningful
management decisions regarding the rental property and have
more than a 10% ownership interest in the property. This
allowance is phased out for taxpayers whose MAGI exceeds
$100,000 and eliminated entirely when it exceeds $150,000.
Thus, it is useless for high-income landlords.
So what does the IRS look for to determine if you are a
real estate dealer or real estate professional? It all depends on
how you spend your time.
TO BE A REAL ESTATE PROFESSIONAL
To be a real estate professional, you need spend at least 750
hours each year actively working in your real estate business
– AND you must pass what the IRS calls the “half-personal
services test.” This means you must spend MORE than 50%
of your working time in your real estate business.
Per the IRS, “If the taxpayer has a full-time job working
2,080 hours a year in a non-real property business, he must
work 2,081 on his real property businesses to meet half-per-
sonal services test.”
The 750 hour test must be met by one spouse alone so
don’t say, “My wife and I both work the real estate business,
and between the two of us, we put over a thousand hours into
the real estate business.” – you will loose. The IRS is very
Continued on pg. 16
By Patrick James,
United States Tax Relief

Steve Bighaus has over 24 years experience in the mortgage industry. He maintains a
focus on servicing the real-estate investor by offering aggressive financing options and
resources for buyers interested in purchasing or refinancing their investment property.
By concentrating on investment properties and the financing that comes with them,
Steve is recognized nationally as an industry expert. The knowledge that he has enables
him to find financing for people even when they have had difficulty elsewhere.
This is not a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation,
sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting
guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and
market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in
payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant. Security
National Mortgage Co. is an Equal Opportunity Lender.
NMLS#: 112825
Contact Steve Bighaus
Senior Loan Officer
206.930.1801
steve.bighaus@snmc.com
Attention Investors:
Pre-Qualify Today!
It’s about time we show you
A REAL HERO
Close your loan in as little as 30 days!
NMLS# 3116

Tax Deductions, pg. 14
specific: You combine your
income on a joint tax return.
But you cannot combine your
hours to claim status as a real
estate professional on your
individual/couple income tax
return.
NOTE: The IRS trains its
agents to ask about who
actually manages the prop-
erty. They are also trained to reality-check what you tell
them against your Schedule E. If you are claiming you are
actively involved in every aspect of your property – but
simultaneously claim a lot of management fees on your tax
return via Schedule E, and deduct them from rental income,
that gives the IRS ammunition to shoot down your deduc-
tions.
RED FLAGS
Here are some Red Flags IRS auditors look for:
• Do you have an operating agreement for your LLC? In
an audit, the auditor WILL ask to see them.
• Did you document a shareholders’ meeting this year for
your corporation? Are there minutes prepared?
• Did you group all your real estate investments together
as a single activity?
Be prepared to produce other
years’ returns showing the same
election. The IRS expects con-
sistency. The election is binding
on future years.
• If you are a limited partner in
a partnership, you can’t claim
the $25,000 special allowance.
The same applies if you have
less than 10 percent interest in
ownership.
• If you try to deduct real estate
losses over $25,000 and you’re not a real estate profession-
al, expect the IRS to scrutinize you.
• Did you deduct rental losses while showing an AGI of
greater than $150,000?
BECOME AUDIT PROOF
Here is one final suggestion: Never go into an IRS audit by
yourself. IRS agents are trained to ask trick questions and
to trap you into saying things.
For a FREE BOOK on how to capture all the tax deduc-
tions you are entitled to and stay audit proof, go to
http://UnitedStatesTaxRelief.com for a FREE download.
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• Network with Investors
from Throughout Texas
& Out of State
• Mingle with Awesome
Companies - Visit with
Tons of Exhibitors!
• Learn from the Best
Real Estate Educators We are pleased to invite your organization
to the 2nd Annual Texas Real Estate Investors
Expo, Saturday, May 30, 2015 at the Omini
Hotel (Colonnade) in San Antonio, Texas
OUR PROMINENT SPEAKERS INCLUDE:
Brad Sumrock, Multifamily Apartments
Larry Goins, HUD Homes
Merrill Chandler, Credit Sense
Rob Barney, DHLC Mortgage
AG Gupt, Real Acquisitions Systems
John Jackson, Lease Options
Scott Meyers, Self Storage Centers
Reggie Brooks, Foreclosures
Gene Guarino, Assisted Living Centers
Steve Downs, The Falls Event Centers
Phill and Shenoah Grove
Jason Schubert, Rich in Five
Brett Immel, Growth Equity Group
Plus, A Surprise Keynote!
Omni Hotel, 9821 Colonnade, San Antonio, TX 78230
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(210) 501-0897
www.TexasExpo.com

S
an Francisco and San Jose led the nation in house
flipping, according to Trulia. Will that trend continue?
And if not, what will be the best strategy this year for
making money in real estate?
Extraordinary returns can be made by flipping houses
(finding run-down properties, fixing them up, and then selling
for a profit), but substantial losses can also occur. The key is
understand market cycles.
In markets where home prices are increasing every single
month, it’s a lot easier to make a profit flipping property. You
can make mistakes, do less renovation, and sometimes do
absolutely NOTHING to improve the property and STILL
make money.
However, as we now know all too well, the opposite is true
when home prices are flat or declining. In a down market, the
chances of being able to buy at a low enough price to turn a
profit get slimmer, leaving you with a very risky investment.
While home prices have been steadily rising for several
years, will that continue? What are the signs we should be
noticing?
Certainly we need to be paying attention to affordability.
We also need to be aware of what could happen to a market if
interest rates were to increase. Supply and demand is always
important – is inventory increasing or decreasing?
Many markets have seen home prices surpass 2006 peak
levels, and we already KNOW that was a bubble. Is it possible
or even sustainable for prices to continue to increase in those
markets?
THE REALITY OF FLIPPING HOUSES
The truth on the ground is far more complex than most real
estate gurus would have you believe.
Inexpensive houses are getting harder to find, and yet more
and more speculators are hunting for them – driving prices
up. Even foreclosures are selling for close to their true market
value, before any renovations have been done!
Those who are lucky enough to find deals often have to
deal with mold, foundation, or pest problems – and yet prices
don’t reflect the amount of work required. Fixing the prob-
lems could wind up eating up far more money and time than
initially planned. This can make flipping houses a full-time
and difficult job – especially for those who are new at it or
already have full-time jobs.
Please proceed with caution before jumping into a flip.
Partner with someone who has done it successfully many
times before.
marketupdate
Can Investors Still
MAKE MONEY
Flipping Property?
AN EASIER WAY TO MAKE MONEY
IN REAL ESTATE
Most people are too busy to put in the hours of time it
takes to find, renovate and resell property. The good news
is, you don’t have to! It’s possible to see high returns in real
estate with little of your own time and effort by simply pur-
suing passive real estate investing options instead. And these
opportunities abound. In fact, this is EXACTLY the right
market cycle for passive real estate investing!
According to the Joint Center for Housing Studies at
Harvard, renters made up 31% of households in 2004. By
2012, that number climbed to 35%. The rentership rate for
people between 30 and 64 is the highest it has been in over
30 years! And professional management allows you to enjoy
the returns on your investment without having to deal with
the day-to-day stress of being a landlord.
When we buy a quality property in a safe neighborhood
near jobs and good schools in a solid market, and then rent
that property to a qualified tenant for more than the expenses,
we create a life-long passive income steam for ourselves.
And every single year we do this, we get a raise because
rents are increasing along with inflation.
There are obviously some tricks to doing it right so that
the rental property is truly passive. But those tricks are easy
to learn. Make sure the home is fully renovated to like-
new condition so that you don’t have to deal with on-going
repairs. Buy near employments centers in low crime areas
with good schools. And look for property where rents are 1%
of purchase price in order to get enough cash flow to cover
expenses.
If you live in California or other high-priced markets,
finding a property that meets this description is nearly im-
possible. California property is not known for cash flow. In
By Kathy Fettke, Real Wealth Network

fact, most Californians don’t even know the term! They only
know appreciation (or devastation when the market turns).
They do not know the concept of investing for monthly
passive income because it simply doesn’t exist in high-priced
markets.
CREATING A MUCH BIGGER BACKYARD
While many “real estate gurus” say that people should look
for investments in their own back yard, unfortunately that
doesn’t work for people who live in high-priced markets.
But thankfully, we live in a world that has become much
smaller thanks to technologies like Google Earth, cheap non-
stop flights and the ability to send photos instantly via your
phone. The need to drive by your property every day has
become obsolete.
At Real Wealth Network, we believe in having a much big-
ger backyard! We search the entire country for areas that are
ripe for investment. We look for areas with job and popula-
tion growth, affordability and landlord friendly laws. Mostly,
we want to invest in these areas where rents are much higher
than the expenses so that investors can pocket the difference
as monthly passive “cash flow.”
It’s a Seller’s Market in California – Time to SELL
and EXCHANGE for Something Better
The way to get rich is to buy low and sell high.
If you already own real estate in a high-priced market, this
is a good time to SELL since you can ask for top dollar and get
multiple offers. Then, with your profits, you can turn around
and BUY LOW in areas that are still up and coming.
We are currently helping many of our Real Wealth Network
members to take advantage of the IRS 1031 exchange that
allows them to sell their low-performing investment proper-
ties and exchange them TAX DEFERRED for much higher
cash-flowing property. They are thrilled to discover they can
triple and even quadruple their monthly income, and in many
cases, are able to retire NOW, years and even decades earlier
than they expected!
Passive investment in real estate can be one of the most
powerful options available to the average person.
Want to learn more? Visit RealWealthNetwork.com for free
education, mentoring and a strong, trustworthy network to
help you learn more about your options and maximize your
returns. We can help you find the best markets for investing,
and introduce you to experienced property managers, turnkey
income property providers, syndicators and highly reputable
real estate agents nationwide.
The
purchasing
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Are you ready to connect
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N E T W O R K
Passive Income for Today & TomorrowPassive Income for Today & Tomorrow
Ca$hFlow
EXPRESS
PRICELESSVol. 2, No. 2, 2014
INSIDE: Strategies to Increase Your Wealth • PLUS: Highlights from Our National Expos
Y
ou Asked, They Listened:
FirstKey Offering More
Ways to Finance Your
Investments.
FirstKey Lending
Offers Investors
Unique Options
FirstKey Lending
Bridge Loan Features:
Loan Amounts: $10M+
Rate Type: Floating
Loan Term: Up to 18 Months
Property Type: 1- to 4- family
residential
Loan-to-Cost: Up to 65%*
Amortization: Interest only
Interest rate: Competitive pricing
*Higher on a case-by-case basis
FirstKey Lending Express
Fixed Loan Features:
Loan Amounts: $500,000 to $5M
Rate Type: Fixed
Loan Term: 5 and 10 year
Property Type: 1- to 4- family
residential
Loan-to-Value: Up to 75%
Amortization: 20 to 30 year
Interest rate: Competitive pricing
For more information, please
contact Bill Ruiz or Scott San
Fillippo at: 1-855-299-1944
FirstKey Lending closed
dozens of Express
and Conventional
Transactions recently.
$1,659,000
41 Properties located
in TX, OH, GA
$4,000,000
76 properties located
in NC, SC
$9,750,000
85 properties
located in CA
$18,500,000
340 properties
located in FL, GA
$32,00,000
450 Properties located
in FL, IN, MD,
MN, NC, TX
Randy Reiff, CEO of FirstKey Lending
A year ago, New York-based FirstKey
Lending was the first to step into a
new financing space – making capital
accessible to small- and medium-sized
investors in one- to four-family resi-
dential rental properties nationwide.
The financial firm’s Chief Execu-
tive Officer, Randy Reiff, says the
firm purposefully positioned itself
to “invigorate the small and middle
markets” and to “empower smart,
entrepreneurial investors to build and
optimize their portfolios and busi-
nesses.”
The financial backing of Cerberus
Capital Management, L.P., one of the
country’s largest private investment
firms, gave FirstKey the opportunity to
hit the ground running while focusing
its attention on developing the prod-
ucts its customers needed.
Following the successful introduc-
tion of its Conventional fixed- and
floating-rate loan products for larger
investors needing $5M to over $100M
in funding, FirstKey launched its
Express loan product for investors
seeking loans of $5M or less in late
2013. That product has delivered in a
big way. “We’ve been thrilled at the
response of real estate investors to our
Express product, which we were able
to introduce in an affordable way by
streamlining the documentation and
closing processes,” Reiff said.
These Express loans offer inves-
tors reduced borrowing costs and a
much more efficient process than was
previously available to these owners
so that they can buy additional one- to
four-family properties, refinance their
existing debt or cash out.
Reiff said that FirstKey has seen
strong demand for its products and
only expects that demand to increase.
“Our business is accelerating as more
and more customers – most of whom
have historically had only limited ac-
cess to this type of financing – become
aware of the variety of products First-
Key offers,” Reiff noted. “Histori-
cally, less than 25% of the borrowers
we are targeting have availed them-
selves of financing of any type. We’re
very excited to see that number grow
as the rental finance market continues
to expand.”
Reiff also pointed out that FirstKey
offers products to accommodate a
number of different types of inves-
tors. “There’s been a lot of focus
recently on the very large investors
in the one- to four-family residential
rental properties, but it’s important to
remember that the largest segment of
this market is represented by the more
entrepreneurial owners who may own
as few as 10 properties or less,” Reiff
said. “These owners typically have
strong ties to their communities and
are looking to grow their portfolios in
a disciplined fashion over time. We’re
here to make sure that these local
investors have the opportunity to grow
and develop their investments.”
FirstKey couldn’t have had better
timing in coming to market with a
lineup of new mortgage loan products
aimed at the small and middle market.
Looking to fill the void in afford-
able investment housing financing,
FirstKey has provided the fuel for real
estate investors to make it happen.
In addition to the successful launch
of the Express loan product, FirstKey
continues to be the market leader in
Conventional loan products geared
towards larger investors as well.
What’s more, CEO Randy Reiff
shared an exciting new loan pro-
gram being rolled out for small- and
medium-size investors in an exclusive
interview with Realty411 magazine.
Continued on pg. 21
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Brett T. Immel and Preston
M. Despenas of Growth
Equity Group have been
giving investors more of
what they want and need
as they guide individuals
to higher yields, in safer
investment properties.
Growth Equity Group
Guides Investors to
SAFETY & SUPERIOR CASH FLOW
“The big question is – where can investors
find an efficient solution for investing in
income producing real estate safely...”
A frothy stock market, roller coast-
er oil prices, and higher taxes are just
the tip of the iceberg of issues bat-
tering investors today. Still, Growth
Equity Group’s Senior Partner Brett
T. Immel says none of these risks
compare to the threat of rising rates,
and is adamant that “interest rates
will go up.”
THE REAL RATE THREAT
Unfortunately, the vast majority
of individuals continue to seriously
underestimate the impact of higher
interest rates on their investment
portfolios, and lives. Whether it is
in six months or 18 months, Preston
warns that rising rates will impact all
businesses from “mom and pop shops
to large institutions, and Fortune 500
companies.” In turn this will obvious-
ly hit the wallets of everyone. How-
ever, perhaps most significantly of all,
it will be a blow to the yields and cash
flow of investors that drag their feet in
restructuring portfolios and locking in
the most attractive spreads on income
producing real estate.
For example, on $250,000 of lever-
age, if rates rise to 8% investors would
lose almost $500 per month in cash
flow, and would pay almost $200,000
more in interest alone over a 30 year
loan compared to a 5% rate today.
Multiply this by five properties, and
factor in rising asset prices, and this is
a million-dollar mistake that investors
will be kicking themselves for.
IN SEARCH OF
BETTER INVESTMENTS
The need to switch portfolio hold-
ings is clear, but many investors have
allowed themselves to be held back by
uncertainty and wanting to ensure they
make the perfect investment, all while
trying to find the time.
Banks haven’t been kind either.
According to many of the clients which
have reached out to Growth Equity
Group, it no longer matters if you have
been banking with the same institution
for decades, or have been depositing
millions each year; individuals are still
suffering from poor customer service,
Exclusive Interview
by Tim Houghten
The Growth Equity Group team: Brett T. Immel (left) and Preston M. Despenas (right).

VIRGINIA QUICK FACTS
• Virginia’s population has
risen at every census since
1790.
• Virginia is home to the
U.S. county with the highest
median income.
• Virginia has the most
counties in the Top 100
Wealthiest in the U.S.
• Seventh largest number
of millionaires per capita.
• Ranked best for business
by Forbes.
their skin in the game and
back investors with
up to 60% no credit
check, non-recourse
financing, with 30
year amortization
payments.
Non-recourse
financing is also
the perfect partner
for those investing
with self-directed
IRAs. For example;
an investor using
just 50% non-recourse
financing and that has 50%
of their portfolio in income
producing real estate is really
effectively hedging 100% of their nest
egg value against inflation, while adding
double digits to their net gains each
year.
While GEG is a national investment
firm Brett T. Immel says the firm is
extremely bullish on Virginia right
now. This is the #1 state for business,
offers low property taxes, and has
added 200,000 new jobs since 2010.
Investors can find out more about
the strengths of VA and the funda-
mentals which are powering up the
local economy, and have enabled
GEG investors to enjoy 100%
occupancy rates via the Growth
Equity Group blog.
The firm also recently unleashed
a brand new website re-design at:
http://growthequitygroup.com
NON-RECOURSE LOANS
Non-recourse loans are secured by real estate,
but for which the borrower is not personally
liable. This preserves personal credit and is an
indicator of properties lenders are extremely
confident in loaning on.
“Non-recourse financing is also
the perfect partner for those
investing with self-directed IRAs.”
Growth
Equity
Group
Top Photo:
Preston M.
Despenas;
Left: Brett T.
Immel
and being forced to
jump through more
hoops than a cir-
cus animal.
The big ques-
tion is – where
can investors
find an effi-
cient solution
for investing
in income
producing real
estate safely,
and get access to
attractive long term
leverage that enables
them to fully capitalize
on the current market, and
lock in the best spreads?
THE GEG SOLUTION
Brett and Preston’s solution has been
gaining quite a bit of media attention.
Providing assistance with self-directed
IRAs, and 24/7 access to everything
investors could want to know about
their investments via the GEGMan-
ager.com portal, investors have been
enjoying higher net spreads and
sleeping better than they have in over
a decade.
However, what really has Preston
M. Despenas pumped up right now is
the pre-approved “5% non-recourse
financing” that is being provided to
Growth Equity Group investors. This
means someone else with sizable
amounts of capital is willing to put

P
erhaps the most important ques-
tion that all real estate investors
and coaches should be asking to-
day is not where oil prices might
be in 12 months, or the best city to invest
in, but how to prepare and invest wisely
to thrive, and continue to survive any low
blows the next 12 rounds the real estate
market can bring. Sensei advises to keep
these six important tips in mind:
1. IT’S NOT JUST ABOUT CASH FLOW
This is that time in the market cycle when
everyone starts claiming it is different, and that
common sense gets kicked to the curb providing
there is cash flow coming in. Passive income is
awesome. Cash flow – “Please sir, can I have
some more?” But there is more than just income
to think about. Ask some of Sensei’s investors,
and they’ll clue you into how the value here is
different.
2.DON’TFORGETBENJAMINGRAHAM
Warren Buffett will never let us forget his
favorite Graham quote: “Investment is most
intelligent when it is most business like.” This
is something Sensei Gilliland takes seriously
too. He believes in structuring well right from
the start and frequently hosts entrepreneurial
workshops for small business owners and real
estate CEOs.
3. YOU CAN DO IT
Believe you can accomplish those goals. If there
is one thing which may be the most destruc-
tive that emerges from the copycat epidemic,
it is close mindedness. Copycats have limited
programming. They’re like Siri in Beta testing.
Unfortunately, this often spills out online in
popular forums with new ‘gurus’ squashing the dreams of others. If you
have really thought through your goals and plans, have invested in edu-
cation, and have laid out a roadmap to scale realistically; don’t let some
newbie guru tell you that you can’t grow to holding six or more proper-
ties very quickly. Look for those that will build you up, not try and tear
you down due to a lack of their own knowledge and experience.
4. NINJA’S KNOW BEST
Real ninja’s are tactical. They were about as opposite from the Vikings
in fighting style as you could get. They used a variety of tools to win,
didn’t rush into the fray wildly, yet they knew when to take action.
Perhaps most importantly they appreciated training. Martial artists don’t
train to just achieve a pretty colored belt and then rush off to try and
win a trophy and title, and leave their training behind. They are dedi-
cated to lifelong learning, and improvement, and are never too proud to
step into a dojo and learn something new from a respected leader. The
same goes for real estate. When you stop learning, you have already
surrendered your trophies and titles, even if you don’t know it yet.
5. ASK QUESTIONS
Before you sign up for a real estate seminar, training course, or invest
with someone, ask questions. Never be shy about asking questions.
What drives them? Is it just money, or is there more? How long have
they been in the industry? How many times have they changed com-
pany names? Interest rates are great now and you want me to take
advantage before they go up. But why lock me into a 10 year balloon
mortgage that will dump me into the market for a refinance when rates
may be at their peak in double digits?
6. IT’S WHO YOU LEARN FROM
Tommy Nelson puts it as, “If smart means you learn quickly, wisdom
means you forget slowly... All kinds of smart people have wrecked their
lives...Wisdom is not that you can learn, but what you learn.”
There is a reason the entire nation’s education system is changing.
You may not think that they have it all right yet, but what the world has
realized is that we need both more practical hands-on training, and ver-
satile problem-solving skills that can be applied to future scenarios as
they happen, and when no text books are laying around. This is where
Black Belt Investors’ training truly stands out. When you attend one of
these Black Belt Investors training sessions, expect to take action.
You’ve got to learn the right investment strategies and tactics that will
get you profitably through tomorrow, not just today. A big part of that
is who you learn from. As in martial arts – lineage is so critical. You’d
never jump into the octagon for a minute with a giant unless you were
pretty confident in your coach’s proven ability to prepare you to win,
right? So why on earth would anyone put the rest of their financial fu-
tures, relationships, and lives in the hands of a coach that hasn’t proven
they can last a single round yet? v
How to Survive
12 ROUNDS
in Real Estate

S
ensei Gilliland just kicked the real estate bandwagon in half.
If you want to lead, get to the gold, and keep it – read this…
Real estate master Sensei Gilliland has never claimed to be a
real estate investing ‘guru’. He has just put in the work, stayed
focused, and refused to be knocked out.
This warrior spirit didn’t just lead him to become one of the young-
est martial artists to be ranked in the nation’s top three, for five straight
years. It has earned him the title ‘Sensei’ from his students, and makes
him one of the few REAL Black Belt Investors.
For nearly 20 years Sensei Gilliland has been investing in real estate
and he may be one of only a handful of notable trainers that still makes
money from investing in real estate today.
So what makes this guy different?
GOOGLE LOVES THIS REAL ESTATE INVESTOR
Sensei is the founder of 12 Rounds - ‘The West’s Top Ranked Inves-
tor’s Club for Successful Cash & Wealth Building’. We asked Sensei
why people keep flocking to his meetup group, and why people should
do business with Black Belt Investors. He said: “In 2007 there were
over 100 real estate clubs in Southern California alone. When 2008
hit that number was slashed to around a dozen; and two of those left
standing were mine. Now there are even more clubs. But who will be
standing when the markets flex next time?”
Of his ability to withstand the second most severe recession in our
country’s history, and how that is contrasted with the other 90% who
folded, Sensei says: “They were very linear in their business models
and thinking, and were too busy selling retail. Everyone was just jump-
ing on the bandwagon of these copycats.”
If you really want to try to put Sensei Gilliland to the test in today’s
ring he suggests you pull out your phone and see what Google says. We
couldn’t resist the challenge! Try it…Talk about ‘mission impossible’.
There are pages, upon pages of Google results for Sensei Gilliland, and
everything is positive. And this is a guy who says he has never worried
Investing Insights from a
REAL BLACK BELT
much about SEO. Seriously, even your teen-
ager’s toughened video gaming thumbs would
probably fall off before you run out of positive
reviews of this guy.
Why does Google love Gilliland? He’s got
depth. He is established. He has a rock solid
reputation. And he has been in the ring since
before most people even thought about ever
using the internet to search for a home or a
home loan.
WHERE IS THIS REAL ESTATE NINJA
INVESTING NOW?
Most might have heard of Sensei Gilliland
for his power packed, hands on, real estate
training. Yet, he is still an active investor and
is in the market doing deals every day. Sen-
sei says that while you still might catch him
helping distressed homeowners and serving up
sweet wholesale deals close to home in sunny
Southern California, he is also working with
serious investors in re-emerging markets such
as Cleveland, Kansas City, Indianapolis, and
Phoenix, Arizona.
Investors can check out more details and
find in-depth research on these markets at:
http://RemoteRehabs.com
BECOME A REAL ESTATE CHAMP
For new investors, intelligent experienced investors, and even new
gurus who don’t want to get KO’d and go belly up, Sensei extends
the invitation to step up, and check out the 12 Rounds Investment
Club. For information visit: http://www.meetup.com/bbinvestors/
This meetup is for those who want to enjoy long-lasting personal
and financial success from their real estate investments.
Article by Tim Houghten
Sensei Gilliland, Black Belt Investors

The Paper Business
Turning DISTRESS
Into SUCCESS In
Distress has a unique way of polishing success.
notes
Article by
Tim Houghten
Staff Writer
M
uch like the abrasive grain of sand that results in
the development of magnificent, beautiful pearls,
the trials and tribulations of the mortgage indus-
try are now revealing their silver lining.
While the pain of foreclosures, an economy in rehab,
and building a business in turbulent times shouldn’t be
minimized, the tests we’ve been through are being turned
into something positive by those that really care, and are
willing to put in the effort.
Fuquan Bilal, founder of National Note Group, knows
this better than most. While some media outlets have
posed that distressed property is declining in America, as
of February 2015 there were almost 5,000 banks holding
over $150 billion in non-performing mortgage notes, $600
million of this pool are newly defaulting real estate loans.
National Note Group has been working to not only help
heal the economy, and offer investment opportunities to
help individuals get ahead, but has been going to extreme
lengths to turn distress into sustainable success for home-
owners.
Recently, in an exclusive interview Fuquan Bilal pro-
vided some of the most transparent, and detailed insight
behind the scenes of the mortgage note industry.
“THERE’S A HEARTBEAT IN EVERY HOME”
While some funds, firms and individual real estate inves-
tors have purely seen the financial struggles of American
homeowners behind on their mortgage payments, or in
foreclosure as an opportunity to seize more property and
make a quick buck; National Note Group’s founder says
his firm takes a very different approach.
Bilal says it is crucial not to forget that “there’s a heart-
beat in every home,” and how “devastating” foreclosure
is. NNG goes to great lengths not to foreclose, and to find
winning, and sustainable solutions for both homeowners
and investors. In fact, Bilal says out of hundreds of loans
purchased in 3rd and 4th quarter of 2014, the firm had just
six REOs on the books in first quarter of 2015.
Going beyond simply offering loan modifications
to borrowers, National Note Group’s team has gone to
great lengths to aid them in improving their finances so
that they can hold onto their homes, and enjoy a brighter
future. This has reportedly included “helping individuals
leverage smarter spending and personal finance, without
becoming miserable by switching to more affordable >
Continued on pg. 30
Fuquan Bilal, founder of
National Note Group

Whether you are new to
the probate business
or consider yourself an
experienced professional, there are
times when you need to take a step
back and make sure that your busi-
ness model isn’t missing a potentially
profitable option. Probates, with
their deeply discounted prices and
motivated sellers, can provide op-
portunities that you simply can’t find
elsewhere. These properties exist
in a wide variety of formats, from
small residential properties, to dream
homes to office buildings, and even
strip centers and warehouses. There
are many ways to find residential and
commercial options in probate real
estate.
WHY CHOOSE PROBATES?
In thinking about probate real estate,
it is important to understand why
so many investors are now special-
izing in this industry. While there
are many options in real estate if
you choose to become an investor
– everything from foreclosures to
working with traditional buyers and
sellers – there are few areas that offer
the deeply discounted prices and
flexible terms that can be found in
probate work.
The selling of probate real estate
and other property is handled by a
court appointed representative, called
an Executor. This individual can be a
family member, trusted friend or pro-
fessional, such as an attorney or an
accountant. As part of their respon-
sibilities, they have to find buyers for
the property that was left behind by a
Finding Residential and
Commercial OPTIONS in
PROBATE REAL ESTATE
family’s loved one. The proceeds from
these sales go to not only the family
members, but to pay taxes, court costs,
medical bills, funeral expenses, and
other items such as past due credit card
charges. This property needs to be dealt
with in order to pay for these financial
obligations.
The process to buy or sell a probate
home is much the same as many other
types of properties. Brendan DeSimone
said, “In a probate sale, the property is
marketed just like any other property.
The probate attorney or the estate rep-
resentative will hire a local real estate
agent, sign a listing agreement, and
show the property, just as they would
a traditional listing. Generally, the list
price is based upon the listing agent’s
suggestions as well as an independent
appraisal ordered and issued by the
court.” During a private sale, there
would be no court oversight, but in
a probate sale, there is a need by the
Executor to quickly find buyers and get
the property sold. This is one reason
that the pricing can be so flexible in
probates. Additionally, if the Executor
lives out of state and tires of coming
back to deal with estate issues, they
may be willing to take a lower price
on a property if the terms are favorable
and allow them to wrap up the probate
more quickly.
WHY LOOK AT BOTH
RESIDENTIAL &
COMMERCIAL REAL ESTATE?
What many investors don’t appreci-
ate is that there are far more options
in probate real estate than just single
commercial
Continued on pg. 48
Article by Leon McKenzie,
U.S. Probate Leads

took action, and went for it. We moved in,
started work, ripping out carpet, tearing
out walls, hanging sheetrock, all the while
living in the “broken” house. She later
traded this house for another house and
we started all over. This may not seem
like that big of a deal, but this was over 25
years ago in a small Midwest town where
stereotypes were the norm and change-
makers were not often welcomed. It didn’t
deter her the least bit.
I
t’s 2015, welcome to to Lori’s
world. With a busy family of
homeschoolers, a thriving real
estate advisory, and a farm to
mange in prime Silicon Valley,
Lori Greymont is a 21st century
pioneer woman. Besides juggling
a busy family and business life as
the CEO of Summit Assets Group,
Greymont also manges a productive
and busy farm with a menagerie of
animals. It’s a life planned deliberately
and made possible by the benefits of
real estate investing.
Greymont, who has been investing
since her early 20s, purchases,
manages and sells assets throughout
the United States for herself as well as
hundreds of clients. While Greymont
and the majority of her clients live in
one of the most expensive areas of the
nation, when it comes to investing in
rentals, they prefer to venture out of
state. In particular, Greymont seems to
gravitate to Southern markets: Atlanta
and Birmingham have been favorite
spots. Recently, Linda Pliagas, the
founder and editor, interviewed
Greymont in the hope of helping others to
choose their lifestyle on purpose as well.
Linda Pliagas: How did you get started in
real estate investing?
Lori Greymont: I grew up in an
environment of real estate, but in an
unorthodox way. It all started when my
mom negotiated with a seller to buy and
fix his house, if he would be the lender.
She didn’t attend any fancy seminar or
the like; she just knew what she wanted,
Choose YOUR
Lifestyle on
PURPOSE
“I live on an acre and a half in Morgan Hill. In the Midwest
where I grew up, this would be a postage stamp! Here in
Silicon Valley, it’s a good amount of land. We have horses,
chickens, dogs, cats and up until a year ago, two milk cows.”
Lori Greymont enjoys a simple country
life in high-tech Silicon Valley.
By Linda Pliagas

Linda: Sounds like your
mom was special?
Lori: As you may know,
my mom recently passed
from her battle with
cancer. I had 18 months
of time with her because I
had set up my business as
a business. What I mean
by that is my business
was systems and people
based, not me based. I
was able to step out for
days or weeks at a time
and things would still be
happening. Essentially, it
allowed me to spend this
time with her, which was
not only a gift for me, it
was my give back to her for what she has
given me. She is my hero. My mom was
a serial entrepreneur. As a kid, I never
really paid attention to all that she was
doing but now I reflect on it in awe and
gratitude for the lessons I learned first-
hand through lifestyle. They were lessons
not taught by words but by her life.
Here’s an example of how she thought
outside the box. Shortly after my parents
divorced, she wanted to make sure we had
a Christmas with gifts under the tree. So,
she talked to the owner of a grocery store
and secured the ability to sell Christmas
trees at the store that year. In September,
we went out to the farm and marked the
trees we wanted. Then, the day after
Thanksgiving, we set up shop. The trees
were cut the day before Thanksgiving, we
built stands to hold the trees, had a small
travel trailer placed there to sit in during
the cold, hand painted signs – the whole
nine yards. After school
each day my brother,
sister and I would go to
our tree lot and setup our
homework on the table,
cook hot chocolate on the
stove, and sell trees when
someone knocked. There
were no video games or
TV’s to entertain us. We
worked. She told us we
could have Christmas on
Christmas like everyone
else or if we wanted to
wait until a couple days
after Christmas, she could
get us a lot more because
of the clearance sales.
So, we sold trees until
Christmas Eve and had our Christmas a
few days later. In this simple example,
she was teaching us to live for what is
right for us, not to conform to the normal
status quo. She also taught us the value of
working.
Linda: When did you buy your very first
house?
Lori: I bought my first personal
investment at age 20 when I was still in
college. It was a 3 bedroom house on
a HUD program with $500 down and
18% interest rate. I didn’t have a job,
but I was able to qualify for the loan
on my own by getting leases signed for
the income. I rented out 2 bedrooms
and finished out the basement as an
apartment. It was my first experience
receiving cash flow and I was hooked.
I upgraded to a better cash flow house
a couple years later and haven’t looked
back since.
Linda: How did you learn to get over
your fears?
Lori: As mentioned above, I was raised
in the shadow of a powerful business
woman, my mom. She taught me that I
can achieve or have whatever I set my
mind to. With that kind of knowledge, I
didn’t feel constrained by fears. I felt like
whatever problems came up, I would be
able to solve it somehow.
“I couldn’t let fear be the master that enslaved me.”
>
Top photo: Lori is surrounded by family:
Her daughter, mother and sister. Below:
Her recent Atlanta tour was a huge success.

We have all heard the mantra is: “Go to
school, get a degree, get a good job.” I
actually started down that path. Then,
I saw death and the fragility of life in a
very real way. My mom’s sister, brothers,
mother and father all died in less than
three years. Her siblings were young and
in the prime of their lives.
One thing I remember hearing growing
up was “When I retire, I’m going to…”
and none of them made it to retirement.
I decided that death was going to come
some day, and so I needed to choose to
live every day to its fullest. I couldn’t
let fear be the master that enslaved me.
Think about it, how many people live
a passionless life because of the fear of
something they aren’t doing? Why not
do it and see if that “fear” thing actually
materializes? Most likely it won’t and
you will know for sure.
Linda: How did that life event change
you?
Lori: I decided I was going to create
the lifestyle I wanted. I would live life
each day rather than plan for it when I
retire. I refused to work 40 hours a week
for 40 years at a job I hated so I could
have enough money to go do the things
I wanted to do for the remaining years of
my life. With that decision, I knew that
owning my own business was the key
to my plan. So, I finished my degree as
a backup plan and started on my path of
being a business owner. I was determined
to live a “no regrets” life.
Linda: You often mention that you live a
contrarian life, what does that mean and
why?
Lori: My use of the phrase “contrarian”
life is to explain that I don’t conform to
the normal for the sake of fitting in. It ap-
plies to my life as a whole in most of the
major decisions. I do the things that I want
to do, regardless of how it might appear to
others.
I live on an acre and a half in Morgan
Hill. In the Midwest where I grew up,
this would be a postage stamp! Here in
Silicon Valley, it’s a good amount of land.
We have horses, chickens, dogs, cats
and up until a year ago, two milk cows. I
would milk my cows once a day and local
families would help consume the copious
amounts of excess milk I had. We drank
it “raw”! You might be thinking “eww”
or “is that safe?” but, with education, you
would find that raw milk is much healthier
for you when you know the source is clean
and safe. And nothing beats all the yogurt,
cheese and kefir you can make with the
whole fat milk straight from the cow!
We also raise and butcher our own meat.
Now, there is no way I have room on my
little amount of land, but I partner with
others who have the land so I know what’s
going on my table from start to finish -
beef, pork, turkey, lamb, etc.
Until my mom needed my attention,
I homeschooled my four children with
the help of local co-ops. When I told my
family 15 years ago my plans for school
my brother asked “Are you going to
brainwash your kids?” and I thought for a
moment and replied, “Yes.” My internal
thought was, “Yes, as a matter of fact I
am! I am going to create God-fearing,
people-loving, creative, problem-solving,
entrepreneurial adults.”
I now have two heading off to college
next year. They are all that and more, not
because of any one person, but because
of their lack of fear to get what they want
and their love of learning.
Look, I have the same concerns and
cares in this life as everyone else does.
I just choose to seek out an answer that
fits what my goal is, not just settle for the
obvious or common answer. I choose to
create the lifestyle that supports the aspira-
tions, goals and dreams of my family and
then I put the construct around that to
support it.
Linda: Isn’t it expensive to live your
lifestyle?
Lori: You might think to yourself, that’s
great, you have all the money you want
to do that! The truth is I didn’t start with
money as a factor in the picture at all. I
made decisions on what I wanted and then
I found a way to make it happen. Whatev-
er resources I was lacking, I partnered. I
became a deal maker in my personal life
and my professional life. I am a “Both/
AND person not an Either/Or.” I want
both. I want my cake and I want to eat it!!
This is what I mean by “I live a contrarian
life.” Rather than just floating down the
“We have transacted over 1,600 properties since 2010 and
in each case we feel we have added value to the people in
the transaction, the homes and the communities.”

sea of circumstances life gives me, I make
deliberate choices to create the life I want
now and in the future.
Linda: If there is one trait an investor
needs what is that trait?
Lori: Decision making. It’s not just a skill
needed as an investor, it’s a skill needed
in life. Decision making is a process, but
no one is teaching it. Instead people are
left to feel their way through or to develop
a process that works for them, until they
make a bad decision and then they are
stuck. I never realized how hard it was for
people to make decisions until I started
teaching real estate investing. People
get stuck at the decision stage and never
move forward, which in and of itself is a
decision. I have created a decision-mak-
ing matrix I use with my students, but it
really comes down to one simple question:
Which decision are you going to regret
more at the end of your life? The time you
waste waiting to make the perfect decision
is time that is lost because “Time is the
only thing in life that we never get back.”
If you make a decision and you lose mon-
ey, you can earn that money back. So what
if you make a mistake? Try again. If you
let time slip by and you never try, you are
left with regret. I want to live my life to
the fullest — that sometimes means fail-
ing, but you can never find out if success
is there if you don’t try.
Linda: Is real estate investing for every-
one?
Lori: I personally think it is, if you are
looking to build wealth. When you look
at where most of the wealth is built, you
will find it is in real estate — for several
reasons: It’s real, it’s insurable, it’s in
demand, it appreciates in value faster than
inflation as an average, and it can be lev-
eraged. You can’t do that with traditional
investments like stocks, so it’s safe if you
invest with the fundamentals in mind.
Linda: Have you encountered any chal-
lenges that you think are unique to being
a woman in real estate?
Lori: In my current business, I often work
with contractors that are rehabbing my
homes. I have been rehabbing since I
was a teen, meaning physically doing the
work. So now that I am the owner hiring
the work to get done, it’s not uncommon
for a contractor to offer a solution that
costs more than necessary.
I will listen. Then I tell them how I
would like it done and pretty much don’t
leave any ambiguity that I am correct. I
usually get the response of “Oh, I didn’t
think of that,” or “Yes, that will work.”
Unfortunately, there are some people who
have an issue with a woman directing the
job. I’ve learned to part ways amicably
and move on. There is no value spending
valuable energy trying to change their
opinion.
Linda: What do you love most about
investing in real estate?
Lori: Making a difference. Our mission is
to add value to people, homes and com-
munities. Real estate is the one business
that encapsulates all of that. I especially
enjoy helping people over their fear of
whatever is holding them back from cre-
ating the life they want. This starts with
one decision on their part to make real
estate part of their portfolio, and then we
go from there. I also enjoy the hunt of the
deal. I love cash flow each month off the
properties. It comes down to improving or
adding value to make a positive impact.
Linda: What is your biggest accomplish-
ment so far?
Lori: Besides raising my children in the
business along side of me, my biggest
accomplishment has been making a differ-
ence that can be measured. We have trans-
acted over 1,600 properties since 2010 and
in each case we feel we have added value
to the people in the transaction, the homes,
and the communities. When people were
Continued on pg. 62
The riding trails near her home offer
Lori the tranquility she needs to balance
her busy life as a local real estate leader.

The distressed mortgage market
is massive, and even when you are
capable of raising millions rapidly like
Berkshire Hathaway and National Note
Group, you’ve got to be able to deploy
capital fast, and efficiently in order
to maximize investor returns, and the
potential of your organization.
Bilal says that he tackled this chal-
lenge early to ensure scalability, speed,
and efficiency by getting serious about
Process Mapping. He explains that by
“documenting processes the first time
around, leveraging Microsoft Excel,
and better managing data – the firm
is able to hire and scale effectively,
eliminate human error, and operate
leaner and more profitably, with better
margins than others.”
It is from this vantage point that Bilal
says the firm is able to provide better
service, financial strength and security,
more investment and portfolio tracking
tools, and advanced training through
the NNG Academy.
For more information, please visit the
firm’s new website, tools and trading
desk at www.NationalNoteGroup.com.
services like Netflix and Metro for
phone and TV, assisting in job search-
es and arranging interviews for the
unemployed, and even helping those
with homes that are now too large to
strategize renting rooms to students
for extra income.”
Harnessing an Elite Level of Focus
So how does Bilal manage it?
Clearly, consistently maintaining a
clear level of focus, effectiveness,
and creative strategic thinking that
can deliver on the above without
becoming burned out, and operating
a multi-million dollar business that
juggles hundreds and thousands of
second mortgage loans, and provides
double-digit returns to investor clients
requires a lot more of a CEO.
Among his secrets to enhanced
performance and success Bilal tells us
his daily routine includes: “Starting
each day with 24 minutes of medi-
tation; one minute for every hour in
the day,” as well as “daily exercise,
and practicing time blocking.” The
founder says turning these practices into
regular habits just like brushing your
teeth every morning makes all the dif-
ference in staying on track. It helps keep
you refreshed and charged, though Bilal
says it also helps when you are really
passionate about what you are doing. In
this expert’s case he says he doesn’t feel
like he is really working at all, and often
hops out of bed in the middle of the
night with new ideas and strategies for
helping homeowners.
However, the National Note Group
executive says that he absolutely relies
on having an amazing team for execut-
ing on all of the company’s objectives.
Bilal describes his approach to lever-
aging top industry talent not only by
offering good compensation, but by em-
bracing “working with people smarter
than me, treating them as partners, not
employees, and giving them the authori-
ty, and creative liberty to be their best.”
When You’ve Got
Warren Buffett Size Problems
When you are tackling a national
challenge that dwarfs Warren Buffett’s
wealth it requires a great system.
Turning Distress into Success, pg. 24
celebrate with
your workers
and team, and
when it closes,
celebrate
again! Then
take some of
your profits
and buy some
long-term hold
properties
for inflation
hedging assets,
for passive
income, and
for future early
retirement. v
Tom Wilson
is a 37-year
real estate veteran who has executed over
$100M and 2,000 units of real estate
investments. Wilson is also a weekly host
of the Real Estate 360 Radio program on
KDOW 1220 am every Wednesday at 2
pm. Listen to his podcasts on iTunes or his
website: http://tomwilsonproperties.com
INVESTWITHCONFIDENCEI M M E D I A T E C A S H F L O W
Discover the lowest-risk, highest-quality residential investment properties in the
country. Using sophisticated methodology, the best investment properties are
carefully selected by an experienced investor and rehabbed beautifully to secure the
best tenants. With competent property management, and instant cash flow, your
investment pays worry-free dividends from day one.
PROFILE OF YOUR FUTURE PORTFOLIO
• Highest Cash Flow
• Lowest Risk Properties & Cities
• Immediate Equity
• Quality Newer Brick Homes and Stable Neighborhoods
• Turnkey – Clear Title, Rehabbed, Leased, Managed
• Home Warranty
“Contact me for a
free cash flow analysis.”
Mention REI Voice Magazine and receive one-year of free
property management with your first purchase.
TOM WILSON, President
408-867-1867
TomKWilson@earthlink.net
TomWilsonProperties.com
Price: $110,000, fully renovated, built 2005
Currently Rented for $1,195
Typical Property
Price $139,000
Rent $1,395
Year Built 2001
4 Bed 2.5 Baths
Mention Realty411 or reWEALTH and receive 1 year
premium home warranty with your first purchase.
INVESTWITHCONFIDENCEI M M E D I A T E C A S H F L O W
Discover the lowest-risk, highest-quality residential investment properties in t
country. Using sophisticated methodology, the best investment properties a
carefully selected by an experienced investor and rehabbed beautifully to secure
best tenants. With competent property management, and instant cash flow, you
investment pays worry-free dividends from day one.
PROFILE OF YOUR FUTURE PORTFOLIO
• Highest Cash Flow
• Lowest Risk Properties & Cities
• Immediate Equity
• Quality Newer Brick Homes and Stable Neighborhoods
• Turnkey – Clear Title, Rehabbed, Leased, Managed
• Home Warranty
“Contact me for a
free cash flow analysis.”
Mention REI Voice Magazine and receive one-year of free
property management with your first purchase.
TOM WILSON, Presiden
408-867-1867
TomKWilson@earthlink.net
TomWilsonProperties.com
e: $110,000, fully renovated, built 2005
ently Rented for $1,195
High End Flip Requirements
• Design as important as
sq. ft. & neighborhood
• Exceptional curb appeal
Dramatic architecture
but not eccentric
• Hire an architect
• Open floor plan and
great room
• Volume (cathedral and/or
high ceilings)
• Totally updated; use a de-
signer & pro-appliances
• High quality consistent
finish throughout
where you want to focus.
Don’t be in too big a hurry
or you will overpay. Know
what your maximum price
is before you offer and
negotiate. Don’t fall in
love with it; be prepared
to walk away if it doesn’t
pencil out. After you win,
do your homework, set
subs in place, prep for per-
mits and be ready to demo
on day one after COE.
Set artificial deadlines
and/or give contractors
incentive and penalty
clauses. Set high expecta-
tions and drive for closure.
Use planning tools to
make sure no material or
subsequence delays the project. Motivate
your crew with compliments, buying
lunches, bonuses; let them know that you
feel that they are important, they are. Get
rid of non-performers. Re-evaluate your
market carefully and set your specific
strategy when you list.
And when the project is complete,
FLIPPING LEVELS
• Wholesale with
assignment contract
• Wholesale with
purchase & resale
• Cosmetic added value
Structural added value
• Added value with
new addition
• Scraper with new build
(Speculation home)
Copyright:pressmaster/123RFStockPhoto

P R I VAT E
411411
FirstKey Lending
Offers Innovation
Makes 30 Year Loans Available to Portfolio Borrowers
Featuring Randy Reiff, CEO
of FirstKey Lending, LLC Exclusive interview with
Tim Herriage, Managing
Director of B2R Finance
Mark Hanf writes on
Attracting Private Money
Plus, Insight from
GCA Equity Partners
SPECIAL ISSUE
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CONTENTS
P R I VAT E
Money411
The Source for Real Estate Finance
36 Tim Herriage with B2R Finance
38 Networking Tips for Business
40 New Options for Investors
from FirstKey Lending, LLC
44 Strategies for Private Lending
45 Celebrate Private Money411
46 Applied Business Software
CONTACT US:
805.693.1497 or
info@realty411guide.com
Be social and receive updates on:
Facebook, Twitter, LinkedIn,
Pinterest, Google+ and more
Important Disclosures for Our Readers:
The information provided therein do not
constitute an offer or solicitation to buy or sell
securities or real estate. Please be aware that
real estate investing can be risky. Realty411,
the publisher of Private Money411, is not
responsible for any information provided and/
or statistical data presented, and does not
reflect the opinions, advice or research by us.
Readers are 100% responsible for their due
diligence, for all investment information and
for all decisions with respect to any potential
investment or transaction. 411 recommends
readers seek the advice of a trusted attorney,
broker, CPA and/or financial adviser before
investing in real estate.
PRIVATE MONEY 411
Cover: Randy Reiff, CEO of
FirstKey Lending, LLC,
introduces 30 year mortgage
loans for portfolio borrowers.
Mingle with hundreds of active
investors in Las Vegas, Nevada.
Private Money411 will be hosting
industry gatherings with a focus on
technology and finance. For more
information, see our ad on page 45.
Photo right:
Tim Herriage,
Managing
Director
for B2R
Finance,
pg. 36
Photo left:
Wyatt Gilbert joins
Applied Business
Software, pg. 46
Photo above: Mark Hanf with
Pacific Private Money, pg. 38

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pricing on you mid-stream.
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• Investment Servicing available for Direct Deposit or Separately Managed
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When B2R Finance
launched its
first products in
late 2013, it was
a game changer
for rental prop-
erty investors.
The company
was among the
first to offer
a financing
option designed
specifically for
small to mid-sized
buy-and-hold real
estate investors.
Fast forward a year, and
the company is growing rapidly,
indicating a bright future for B2R and
the single-family rental market. This
year, according to Managing Director
Tim Herriage, B2R has ramped up to
meet the pent-up demand as one of just a
handful of companies offering this type
of product, and has added approximately
50 employees spread across three offices
in Charlotte, New York and Dallas. The
company is also looking to the future,
shoring up its leadership team by adding
highly strategic and experienced leaders
in new roles of CFO, COO and CEO.
Realty411 asked Herriage, also a long-
time investor in the single family rental
market, what’s next for the sector.
Herriage: We remain bullish in our
outlook for a number of reasons.
First and foremost, demand remains
high. As your readers are well aware,
98 percent of the nation’s estimated 14
million single family rental homes are
owned by smaller investors, but access
to credit for these investors had previ-
ously been incredibly restrictive – of
the millions of homes owned by small
investors, 10 million are not financed. In
short, these
homes were
unleveraged
because of a
gap in the mar-
ket. B2R and our
competitors fill the
gap. As these smaller in-
vestors become more liquid, we
could see them pursue additional invest-
ment properties or reinvest in their current
properties, adding activity to the market.
Second, homes continue to recover val-
ue lost during the Great Recession. While
there is some speculation that declining
foreclosure activity might weaken the
overall opportunity, most of the investors
we encounter have always acquired sound,
cash-flowing rental homes from traditional
sources. Fewer homes underwater actually
mean an increase in the overall value of
our investors’ portfolios.
Changing demographics also serve to
bolster the SFR market. According to a
report from the Harvard Joint Center for
Housing Studies, 35 percent of households
rent, up from 31 percent in 2004, and of
them, 20 percent report no intentions to
buy, either because of macroeconomic
conditions, personal financial concerns or
for reasons of preference or lifestyle.
A growing renter base leads to lower
vacancy rates, which has led to favorable
rents for our investors. The average na-
tional effective rent rose 12 percent in the
last four years.
Overall, the market is strong, with
returns averaging 9 percent, according to
Daren Blomquist, vice president at Real-
tyTrac, and annual gross returns reached
as high as 41.57 percent in Edgecombe
County, N.C., the highest of all the 586
counties recently analyzed.
A recent Yahoo Finance story probably
sums it up best. In the Oct. 31 article, an
investment banker who focuses on putting
together deals that package loans to
investors noted, “The real market is this
market. It’s where everything is actually
going to get to.”
About B2R Finance:
B2R Finance, America’s Buy to Rent
Lender, is the leading provider of residen-
tial buy-to-rent mortgages for property
investors, with offices in New York, Char-
lotte and Dallas. The Company offers
effective and innovative lending solutions
dedicated to residential rental property
investors. B2R operates in partnership
with the nation’s leading commercial and
residential real estate experts to ensure
that its loan products and customer
service are in the forefront of the growing
residential rental investment market. B2R
can assist any size investor with a variety
of lending products to enhance customer
investment. Further information is avail-
able at www.b2rfinance.com or on Twitter
@B2RFinance.
B2R Predicts StrongYear Ahead
for Rental Home Market
About Tim Herriage, Managing Director and Head of
Marketing and Business Development A 12-year real
estate investment veteran, Tim has purchased more than
1,000 single-family houses, many of which he holds as
rental property today. He is the founder of the larg-
est individual investor-focused trade show in the
U.S., the REI Expo, building on his passion for real
estate investing and the opportunity it represents for
those who want to take control of their retirements.
Tim Herriage also proudly served as a sergeant in
the United States Marine Corps.

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Attr
Lea
you
len
cop
boo
Paciﬁc Private Money Inc. • CA Dept
PacificPrivateMoney.co
pricing on you mid-stream.
WE MAKE BORRO
Loans@PacificPriv
P
eople are always asking
me how I was able to
build my private lend-
ing business so quickly.
How did I attract several
hundred investors in just a few short
years? Well, the simple truth is that I
discovered how to network effec-
tively. Networking, as I define it, is
the act of building your
business one relation-
ship at a time.
Effective networking
is based on the premise
that “how we show up”
in the world is key to
attracting success.
My view of Effective
Networking is based on
three premises:
• Our lives succeed or fail gradually,
one conversation at a time.
• People don’t like being talked to.
They want to be talked with.
• The simple truth is, people do busi-
ness with people they like.
A key point to keep in mind is that,
while no single conversation is guar-
anteed to change your life, any single
conversation CAN. The conversa-
tion IS the relationship.
As I network, I’m ever mindful
of a quote from real estate expert
Robert Helms, who said we are all
just one relationship away from an
explosion in our business!
I know this to be true, because
few questions to find
out who they are and
what they’re doing,
and whatever they
say, I find a way to be
agreeable and compli-
mentary about it.
So, for example, I’ll
find out where in the
area they’re from, and I
might say “oh, yeah, that’s a really nice
area”; or if they tell me they’re doing
fix & flips I might say “yeah, I have
several friends who are doing really
well with that. How’s it going for you?”
As I probe about them, whatever I find
out, I’m agreeable and complimentary
about it.
So the initial interaction with some-
one is not so much “how are you” but
“who are you”. People love to talk about
themselves, so I always make the initial
interaction revolve around them first.
And the most important component I
bring to each conversation is authen-
ticity. People need to perceive you as
authentic. They need to perceive your
compliments and agreements as genuine
and not forced.
how I went from zero borrowers and
zero investors to writing nearly 1,000
loans and attracting over 400 investors
during the past five years was a result
of daily conversations and a series of
mini-explosions in growth, all from
forming new relationships.
Now when it comes to networking and
talking with people, here’s an important
concept: When you meet people, try to
speak and listen as if this is the most im-
portant conversation you will ever have
with this person. Because, quite frankly,
it is. First impressions are always the
most important – we all know this. So
make sure that your first impression is
an attractive one.
One of the methods I employ is
a strategy best described by expert
networker Scott Ginsburg, who wrote
The Power of Approachability, and
here’s how he puts it: “Make people
fall in love with you by helping them
fall in love with themselves first. You
do that by giving them a front row seat
to their own brilliance”. The way I try
and do that whenever I meet someone
is to immediately engage them with a
When I attend an event, my
goal is not a certain number
of connections but at least
ONE KEY connection.
By Mark Hanf, Pacific Private Money
EFFECTIVE NETWORKING
forYour Business Success

You see, authenticity is the new cur-
rency in business today!
Why? Consumers today are more
aware and hypersensitive to sales tactics
because they are bombarded all day
with propaganda from radio, news-
paper, TV and, now more than ever,
the Internet. The number of
marketing messages
we receive each
day is astounding.
Our phones ding
and ping all day with
incoming emails and
text messages. People
are not having effective
communications like
we used to, and whether
they know it or not, they
yearn for it.
So, I repeat: Authentic-
ity is the new currency
in business today!
Your authentic self
is who you are when
you have no fear of
judgment. It’s the person
you are before the world
starts pushing you around
and telling you who you are
supposed to be. And the truth
is that the real you is the best
you, and it’s the most powerful
tool for forming real connections that
will grow your business. One of the
keys to authenticity is being relaxed,
genuine and friendly. Another key is to
be informal. I tend to be very informal
with people I’ve only just met. I’ll start
talking to them as though I have already
had a warm introduction. I have found
that to be very effective and in fact it
tends to disarm people very quickly.
Rarely have I found resistance to this
tactic of using informality and literally
just striking up a friendly conversation.
So for me, when I’m networking, I’m
not trying to be impressive, but rather
I learned to become good at being
authentic and comfortable with being
transparent.
Many don’t realize just how attrac-
tive it is to others when you wear your
heart on your sleeve and you are ap-
proachable and disarming. Now I will
admit that transparency is not always
easy and for many it takes courage.
Wearing your heart on your sleeve
takes guts.
In networking, the goal is making
a connection, which then leads to a
relationship.
Communicating effectively is all
about how you show up in their world,
in their universe. Effective networking
is not about you. It’s about how you
make others feel about themselves.
Now a lot of networking experts will
tell you how to work a room as though
the goal is about transactions. In other
words, getting in front of as many peo-
ple as possible, making it a numbers
game. There have been books written
about this. But I disagree. Building re-
lationships, in my opinion, is not about
transactions, it’s about connections;
and not just any connection but effec-
tive connections. It’s about creating
opportunities for genuine and authentic
interactions that lead to advantageous
opportunities for both parties.
When I attend an event, my goal is
not a certain number of connections but
at least ONE KEY connection. So in
Effective Networking, the conversation
IS the relationship, and the result of a
continual flow of new relationships is
explosive growth in your business.
Excerpted from the program “The
Insider’s Guide to Attracting Private
Money” by Mark Hanf, available at
www.AttractingPrivateMoney.com.
Mark is broker and president of Pacific
Private Money, one of Northern Cali-
fornia’s most respected private lenders.
to leave an impression. In addition to
being authentic and genuine is that I
practice what I refer to as transparen-
cy. Some call it wearing your heart
on your sleeve. So, for example, when
I’m talking to someone about my
business,
especially
my business
success, I
make sure I
slip in some
humility,
which
for me is
oftentimes
the story
of how I
ended up
in this ca-
reer, which
includes
how I ex-
perienced
failure
when the
real estate
market
turned in 2007.
Since many of the
people I network with
are in the real estate market in
some form or fashion, by revealing
some humility, I give them permission
to share their own particular experience
without shame or judgment. And thus,
we have a bonding experience!
Sharing what is real about you is the key
to building real relationships with oth-
ers. When you show your authentic self,
people will respond in kind. Moreover,
being ourselves is our defining feature!
It’s what sets us apart from our compe-
tition!
I will tell you right now that if you
asked me what was the one thing that
helped me be most successful I would
tell you that it came from the fact that

FIRSTKEY LENDING
Continues to Innovate
F
irstKey Lending revolutionized the real
estate market for entrepreneurs investing in
residential rental properties when it began
offering its one of a kind single-property
loan product earlier this year. A fully amortizing
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no prepayment penalty. FirstKey’s Express sin-
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avoiding interest rate risk and large balloon pay-
ments at the end of the loan term.
“We saw immediate demand for our Express
property loans,” says Randy Reiff, CEO of FirstKey
Lending.
But, as a market leader, FirstKey is committed to
making it even easier to invest in one- to four- family
rentals and is constantly innovating to provide addi-
tional financing options to current and prospective
customers.
Responding to the success of its Express proper-
ty loan product, FirstKey recently made significant
enhancements to the Express program to bring the
benefits of this unique product to entrepreneurial cus-
tomers who own portfolios of more than 10 properties.
FirstKey is now also offering 30-year fixed rate
solutions for portfolio loans of up to $5 million dol-
lars with no restrictions on the number of properties
financed. Like the single property loan, these portfolio
Makes 30 Year Loans Available to Portfolio Borrowers
Continued on pg. 43
Randy Reiff, CEO of
FirstKey Lending, LLC

Contact our SFR Specialists today to get started!
1-844-474-5076 | www.firstkeyrentalfinance.com
We finance one
property or many
properties
•
No limit on how
many houses you
can finance
•
Loans of
$75,000 and up
• Lower your Rate
• Manage your Cash Flow
• Grow Your Portfolio
• Take Cash Out
30 year fixed rates Fully amortizing No prepayment penalty
You’re looking to build your
rental portfolio. We’ve got the
tools to help you do it.
FirstKey Lending, LLC only makes loans for a commercial or business purpose and does not make residential mortgage loans. Loan products
may not be available in all states and are subject to credit application and approval. This is not an offer or commitment to lend. FirstKey Lending
operates out of several locations, but not all locations conduct business in all jurisdictions. FirstKey Lending, LLC an equal housing lender. 4 Inter-
national Drive, Rye Brook, NY 10573. Tel: (888) 707-5040. NMLS Unique ID No.1063414 (www.nmlsconsumeraccess.org). FirstKey Lending products
and services offered in California are made or arranged by FirstKey Lending CA, LLC pursuant to its California Finance Lender Law License. Arizona
Mortgage Banker License No.0925342. Loan products may not be available in all states and are subject to credit application and approval. Other
restrictions may apply. Rates, terms and products subject to change without notice. This is not an offer or commitment to lend. 11/2014
We can help you
refinance or buy
more investment
properties

• Residential
• Raw Land
• Auctions
• Leveraged
• Commercial
• Agriculture
• Options
• Short Sales
• Fix and Flip
• Fix and Hold
• Trust Deeds
• Mineral Rights
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to work for your IRA
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loans have no prepayment penalties, making them even
more attractive for entrepreneurial investors who want
to lock in long-term financing but maintain flexibility to
sell assets or manage their investments.
“The needs of entrepreneurial investors are not
necessarily the same as institutional investors. With
the introduction of this product, we are giving customers
who are a bit less rate-sensitive the ability to choose a
long term, fixed rate solution with complete prepayment
flexibility,” said Reiff. “Recognizing that the needs and
aspirations of entrepreneurial borrowers might change
over time is what inspired the original 30-year property
product, and we are now thrilled to make it available for
customers who want to borrow up to $5 million against
their multi-property portfolios.”
FirstKey was the first national lender to target
entrepreneurial borrowers in the rental finance space
and has prided itself on innovating a wide variety of
programs meant to make it easier to invest in the SFR
market.
For FirstKey, it’s not just about the borrower’s credit
score, but the strength of the borrower’s investment.
FirstKey looks primarily 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 accessi-
ble to a wide range of customers.
For entrepreneurial investors more interested in
optimizing rate than term, FirstKey continues to offer
Express portfolio loans under $5 million for 5, 7 or 10
years at some of the lowest fixed rates available in the
SFR space.
FirstKey’s wide range of products also includes
options for many other types of investors. Premier
provides non-recourse loans from $5 million to $500
million to mid-size and institutional rental investors.
For entrepreneurs more focused on fixing properties
and selling them, FirstKey also offers loans for rehab
projects between $100,000 and $1,000,000 through its
Fix & Flip program.
“We are proud to continue innovating and improving
our market-leading products to serve the unique needs
of our entrepreneurial and institutional investors,” said
Reiff. “Whether one property or 10,000, our suite of SFR
finance products provides a variety of solutions to the entire
spectrum of investors.”
FirstKey continues to simplify the logistics of all its
programs, streamlining the documentation process and in-
creasing the ease of closing. These efforts make it easier to
manage expenses and navigate the process for customers
who may be financing their investments for the first time.
FirstKey is backed by Cerberus Capital Management
L.P., one of the country’s largest private investment funds,
giving it the resources it needs to continue advancing in the
market. FirstKey management said the recent moves were
an effort to continue offering exciting new options and the
value that its customers have come to expect.
More information, please visit: http://firstkeylending.com
FirstKey Lending Offers Innovative Opportunities, pg. 40
“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.

I Want to Share a
Secret with You…
I used to believe that the only way to generate income
through real estate investing was by owning property
and renting it out. I bought (and later sold) single family
rental houses, fixed them up whenever necessary, and
found tenants for each of them.
What I quickly learned was that being a landlord
wasn’t as easy as I expected. I had to deal with tenant
issues and maintenance problems, and pay for “extras” I
hadn’t really considered like insurance and property tax-
es. (I quickly found out why landlords like to complain
about the “three Ts” – tenants, toilets, and taxes!)
I didn’t realize that there was another way to create
income through real estate investing – a way that more
sophisticated investors had figured out which earned
them solid returns without the hassles of owning proper-
ty directly. It’s called “private lending”.
WHY I LIKE PRIVATE LENDING
Private lending simply means providing loans that
are secured by real property. The investor/lender
earns money by collecting interest for their loans
and in some cases can also profit from apprecia-
tion in the property that they are lending against.
Private lending isn’t for every investor, but the
following are some of the reasons why I like it as
part of my real estate investment strategy.
1) The returns can be as good, or better than
those you get from renting property.
2) Your loan is secured by the equity in the
property you are lending against.
3) Since you don’t own the property, you
don’t have to manage tenant or maintenance
issues.
4) You can invest in loans made against a
wide range of property types.
5) Many different lending models are avail-
able from one investor / one loan to pooled
funds.
DIFFERENT PRIVATE LENDING MODELS
The most basic private lending model is to provide first
mortgages to individuals or entities that need them to buy
or refinance a property. In this case, the loans may be
structured in two ways. First, as fully amortized, meaning
principal and interest are repaid together on a regular,
periodic basis. Alternatively, as interest only, meaning only
regular, periodic interest is paid during the life of the loan,
with the principal repaid in a single balloon payment at the
end of the loan.
Another model is to provide second mortgages to bor-
rowers, typically for a higher rate of interest and structured
as fully amortized or interest-only loans. These second
mortgages can be higher risk since, in the event of a de-
fault, foreclosure, and/or property sale – the first mortgag-
es are paid off first and any remaining money is used to
pay the second or further subordinated mortgages.
A third model is known as shared equity. In this model,
the lender provides the borrower with a loan in return for
interest and a share of the appreciation in the property
when it is resold. Shared equity models typically only apply
Is Owning Investment Property
the Best Way to Generate Income
from Real Estate?
Insights by GCA Equity Partners, LLC
>

Realty411 Magazine - #LivetheLife featuring Lori Greymong - THE SOURCE FOR REAL ESTATE INVESTING

Realty411 Magazine - #LivetheLife featuring Lori Greymong - THE SOURCE FOR REAL ESTATE INVESTING

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Realty411 Magazine - #LivetheLife featuring Lori Greymong - THE SOURCE FOR REAL ESTATE INVESTING