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Slide 1: Ca$hFlow EXPRESS No. 1 / Vol. 1 2012 Passive Income for Today & Tomorrow FREE Learn How to Create Stock Market Wealth Today Investors Manifest a “Cashflow” Mindset By Doug Carver Organizer Pasadena and Burbank Cashflow Meetup Groups Yes! By Tyrone Jackson TheWealthyInvestor.net 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 teacher 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 relatives 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 investor? 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 express 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 company’s profit. Over the past ten years Coke stock (symbol KO) has risen from around $40 per share to a high of $71 — $1000 invested 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. Continued on pg. 12 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 germinate and you’ll end up with next to nothcan remember my first time playing to harvest in the fall. ing Robert Kiyosaki’s Cashflow How, you ask, does this relate to the board game about eight years Cashflow game? ago and how it Well, after playing started a chain the game a bunch of events that continues of times, I learned to this day. What stuck the “how to” of with me most was not the getting out of the “how to” of playing the rat race, but I still game but the people that was not able to I met at the event. These take what I learned were not like the normal from the game and people in my life that Carver (left) and apply it to my realwould tell me I was crazy Dougthe Cashflow gameChris Hanson display to group members. life financial situfor trying to start my own ation. However, I real estate business or realized that the time I was spending with that financial freedom was impossible my new Cashflow friends was changing without a steady well-paying job. The the way I thought about money and my people I met were excited about learnfinancial future. I no longer viewed the ing and expanding their knowledge on stock market as a giant rigged system for how to achieve financial freedom. They losing money. I began to see the tremenwere active investors in real estate and dous opportunities in the sinking real esthe stock market. They were small busitate market even as many people I knew ness owners with a passion and vision were losing money on deals that had gone for creating more financial success in bad. Overall, I saw for the first time optheir lives. Overall, they had a mindset portunities all around me to create wealth for prosperity that I like to call a “Casheven as the newspapers talked constantly flow” mindset. of the “Great Recession.” A lot of people complain that Kiyosaki Today as a result of my ongoing indoes not provide the specific details on volvement playing and organizing local how people should implement his stratCashflow events in Southern California, egies to create financial freedom in his I have a thriving real estate investing books and programs. Truth is he never business. It was after speaking with one spells out a step-by-step “how to” for of my Cashflow friends who was a real building long-term financial freedom. estate investor that I was encouraged to What he does teach is far more imporstart wholesaling distressed properties. It tant, and that is how to create a “Cashturned out to be a great decision. More flow” mindset. Kiyosaki describes it in recently, I’ve begun to learn how to suchis book Cashflow Quadrant moving cessfully trade in the stock market using your mindset from the E (employee) and options. As a self-proclaimed real estate S (self-employed) side of his Cashflow “zealot”, I never would have dreamed of quadrant to the B (business owner) and investing in the equity markets. HowevI (investor) side of the quadrant. In layer, after playing Cashflow 202 with my man’s terms, it’s the mental shift from Cashflow friend ,who is an active trader, someone who seeks financial security at and learning about his trading system, I all costs to someone who can confidently was able to see the opportunity before and knowledgeably take measured risks. me. I now fully expect that investing in This is a simplistic definition but a very the markets will be a huge part of my fuimportant one to understand. Without the ture financial success in addition to my correct mindset, it really doesn’t matter how much you learn the “how to” of real I Continued on pg. 2 Personal Finance News from the Publishers of Realty411 Magazine - www.Realty411Guide.com
Slide 2: Will Big Money Run Away with Cashflow Ready to Make an Extra $5,000 to $30,000 Every Month? “Your wealth is in your thinking” is the mantra trumpeted most by stock market teacher and trader Tyrone Jackson. For the past five years, Mr. Jackson has been helping creative artists and self-directed investors produce monthly residual income & build long-term wealth in the stock market. His Wealthy Artist/Wealthy Investor program exposes both the experienced trader & novice to the powerful concept of monthly residual income. A Real Estate Investments? Join Tyrone & the CashFlow Express Team on February 5 for their Success 2012 Seminar This is a FREE WORKSHOP, but guests must RSVP by calling 310.499.9545 Join BILL GATTEN at his next event and learn the KEY TO CAPITALIZING ON FREE REAL ESTATE (Acquisition and Ownership) in This Crazy Economy! We will teach you how our “TRIAD APPROACH” can provide the professional real estate community with a SAFE VEHICLE FOR ACQUIRING, SELLING AND DEALING WITH ALL TYPES OF REAL ESTATE. Learn more at www.LandTrust.net or call 1.800.409.3444 - Call Or Visit Our Website for Upcoming Educational Training - 1 Create Stock Market Wealth 1 Have a Cashflow Mindset contents 9 EXPRESS Passive Income for Today & Tomorrow 6 Cash Versus Cashflow 7 Calculate Your ROI 8 The Nested Action Cycle Investor Spotlight 10 Resource Directory 11 Inside Our Expos 2 Will Big Money Run Away? 3 Six Tips for Faster Wealth 4 Focus Versus Diversification 5 Jump Start Success Our Goal is to Educate, Motivate & Inspire New Investors Ca$hFlow Realty411 No. 1 / Vol. 1 2012 Linda Pliagas pliagas@msn.com EDITORIAL STAFF Lori Peebles Anita Cooper Andre Sanchez Brianna Bertrand Yes! EDITOR COPY Anita Cooper PHOTOGRAPHERS Sam Green John DeCindis PRODUCTION Augusto Meneses WEB DESIGN Diggs Design By Tyrone Jackson TheWealthyInvestor.net 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 teacher 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 relatives 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 investor? 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 express 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 company’s profit. Over the past ten years Coke stock (symbol KO) has risen from around $40 per share to a high of $71 — $1000 invested 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. Continued on pg. 12 Learn How to Create Stock FOUNDER Market Wealth Today Investors Manifest a ADVERTISING “Cashflow” Mindset Media Partners Manifest By Doug Carver Organizer Pasadena and Burbank Cashflow Meetup Groups FREE 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 germinate and you’ll end up with next to nothcan remember my first time playing to harvest in the fall. ing Robert Kiyosaki’s Cashflow How, you ask, does this relate to the board game about eight years Cashflow game? ago and how it Well, after playing started a chain the game a bunch of events that continues of times, I learned to this day. What stuck the “how to” of with me most was not the getting out of the “how to” of playing the rat race, but I still game but the people that was not able to I met at the event. These take what I learned were not like the normal from the game and people in my life that Carver (left) and apply it to my realwould tell me I was crazy Dougthe Cashflow gameChris Hanson display to group members. life financial situfor trying to start my own ation. However, I real estate business or realized that the time I was spending with that financial freedom was impossible my new Cashflow friends was changing without a steady well-paying job. The the way I thought about money and my people I met were excited about learnfinancial future. I no longer viewed the ing and expanding their knowledge on stock market as a giant rigged system for how to achieve financial freedom. They losing money. I began to see the tremenwere active investors in real estate and dous opportunities in the sinking real esthe stock market. They were small busitate market even as many people I knew ness owners with a passion and vision were losing money on deals that had gone for creating more financial success in bad. Overall, I saw for the first time optheir lives. Overall, they had a mindset portunities all around me to create wealth for prosperity that I like to call a “Casheven as the newspapers talked constantly flow” mindset. of the “Great Recession.” A lot of people complain that Kiyosaki Today as a result of my ongoing indoes not provide the specific details on volvement playing and organizing local how people should implement his stratCashflow events in Southern California, egies to create financial freedom in his I have a thriving real estate investing books and programs. Truth is he never business. It was after speaking with one spells out a step-by-step “how to” for of my Cashflow friends who was a real building long-term financial freedom. estate investor that I was encouraged to What he does teach is far more imporstart wholesaling distressed properties. It tant, and that is how to create a “Cashturned out to be a great decision. More flow” mindset. Kiyosaki describes it in recently, I’ve begun to learn how to suchis book Cashflow Quadrant moving cessfully trade in the stock market using your mindset from the E (employee) and options. As a self-proclaimed real estate S (self-employed) side of his Cashflow “zealot”, I never would have dreamed of quadrant to the B (business owner) and investing in the equity markets. HowevI (investor) side of the quadrant. In layer, after playing Cashflow 202 with my man’s terms, it’s the mental shift from Cashflow friend ,who is an active trader, someone who seeks financial security at and learning about his trading system, I all costs to someone who can confidently was able to see the opportunity before and knowledgeably take measured risks. me. I now fully expect that investing in This is a simplistic definition but a very the markets will be a huge part of my fuimportant one to understand. Without the ture financial success in addition to my correct mindset, it really doesn’t matter how much you learn the “how to” of real I 310.994.1962 EVENTS & EXPOS Lawrence Ruano Wendy Pineda CALIFORNIA DISTRIBUTION Professional Distribution Solutions 1.877.418.6500 NATIONAL DISTRIBUTION KJ Banks: 805.377.6328 PUBLISHED BY Manifest Media Partners SUBSCRIPTIONS/INFO: 310.499.9545 Join Our VIP Social Network: http://realty411guide.ning.com Continued on pg. 2 CashFlow Express is published in Santa Barbara County by Manifest Media Partners. ©Copyright 2007-2012. 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 stocks, bonds, mutual funds, gold, other securities and commodities and/or real estate, seek the advisement of a trusted financial adviser, attorney or tax consultant. Investing is risky business and may result in loss of capital. Please invest responsibly. PRINTED IN THE USA. GOD BLESS AMERICA So what should the retail investor do? The retail investor should take action. This is still a fragmented market that allows an investor to own one, two or three properties. They cannot do this in multifamily commercial real estate other than by investment in a fund or a REIT. But it’s important that investors act prud e n t l y. T h i s m e a n s not investing in their own backyard favoring proximity over return, not investing with flyby-night property sellers who peddle ‘high return’ properties and then disappear leaving the investor holding the bag. And not doing thorough due diligence on the area, the property and the provider. The HomeUnion Services team are ready to assist new investors. Finally, they should a report that suggests the U.S. is moving not buy the property from one entity and towards a rentership society with home have another entity manage their investownership declining to 59%. A recent ment. In other words, the retail investor Mortgage Bankers Association study says has to do the very things that the large that home prices may have hit bottom. funds do before they invest. This means that investors have a growing number of properties that they can buy Discover a whole new way to unleash fullycheaply and then select from a large pool managed, high-income cashflow real estate of qualified renters. It all adds up to stable investments, call (866)732-3220 or email: high yields for people investing in buy- cashflow@HomeUnionServices.com So what changed? Like all markets this one is moving beyond the early adopter stage. And the factors that have made this a great investment opportunity are compounding. There are more distressed assets hitting the market with a larger shadow inventory waiting in the wings. Morgan Stanley just published CashFlow Mindset, pg. 1 great financial opportunity does not stay under the radar for long. The side road with less traffic gets crowded pretty soon as drivers hear about it and jump off the freeway. High yield cash flow real estate investments may be headed for a similar fate. Retail investors have had this opportunity staring them in the face for a while, and many have taken advantage of it. Retirees or people about to retire, individuals suffering from ‘market gyration trauma’ and high-net-worth individuals seeking portfolio diversification have all been adding cashflow residential real estate to their portfolio. and-hold single-family real estate. This has caught the attention of big money: funds, institutional investors and high-net worth groups. Distributed single-family real estate investments are quickly becoming the ‘unapartment’ portfolios of these funds. Personal Finance News from the Publishers of Realty411 Magazine - www.Realty411Guide.com Connect to our virtual network ~ Search for us here: real estate activities. Robert Kiyosaki’s Cashflow 101 and 202 are great boardgames to expand your financial intelligence, but I hope you can now see they are the basis for so much more. They create a framework for building lasting relationships with people who have a “Cashflow” mindset. These are people who are ac- tively pursuing financial freedom and see the world full of financial opportunity and money-making possibilities. By hanging out with these folks at your local Cashflow group, I know you to will begin to develop your own “Cashflow” mindset and begin to see real changes in your financial future. CashFlow Express • Page 2
Slide 3: publisher’s note 6 KEYS FOR financial freedom ample, if you are a first-time home buyer (or even an empty nester), be open to the idea of purchasing a duplex or other multifamily property instead of a typical single family residence. This way, you can live in one unit and rent out the other for income. As a landlord myself, I know it’s not easy to live near tenants, but if you screen your prospective renters correctly, it will reduce future nightmares. Be smart, let other people pay off your mortgage! You can always save money and then buy another home later, after you build a passive income stream. Be A Guest at a FREE Foreclosure Workshop with Lloyd Segal, California’s Foreclosure Expert! To learn more about a FREE Foreclosure Workshop near you, please call: 888.285.0101 NEW BOOK Released April 2012! By Linda Pliagas, editor & publisher E ForeclosureWorkshop.net veryone yearns for abundance and financial security, it is a human desire we all share. It is a motivation ingrained in us as part of our survival mechanism. While we all have this in common, only a limited few ever actually reach true financial security. The statistics can be depressing. According to the Retirement Confidence Survey (2006), 53% of Americans have less than $25,000 in retirement savings. Plus, 30% mistakenly believe that they 2. Increase Your Formal AND Finanwill only need $250,000 or less in total cial Education. Did you know that earnretirement savings. ing a bachelor’s degree can increase your One of the problems in our society is income by $25,000 annually? Plus, it gets a lack of discipline in regards to saving. better: According to Census Data, earning In fact, a recent study by Harris Interac- a graduate degree will net a person antive found that 57% of households do not other $20,000 per year — that’s $45,000 even have a budget (2009 Financial Lit- more, year after year! Now, don’t comeracy Study). plain about the high cost of education or In my 20 year plus career in journalism, how “hard” it is to go back to school. My I have interviewed many successful and former neighbor was in her 50s, running wealthy people, from her own business and celebrities to company attending graduate CEOs. Undoubtedly, a school part-time. It’s perk to this profession never to late! was being able to unlock It’s also important their secrets. I’ve comto keep in mind that piled a list of important universities do NOT guidelines, which were teach people how to followed by many of get rich. So on top of those who transformed your formal educatheir mediocre life and tion, start taking classaverage paychecks into Linda with real estate mogul & educator es about investing. Dave Lindahl (www.REmentor.com) extraordinary wealth. Financial classes are These steps are not taught at most adult easy to follow, but they will get you started schools and colleges for a nominal fee. on a disciplined path and lead you toward I have also attended real estate seminars creating a wealth-conscious mindset. for many years and have learned great tips from top mentors, such as Dave Lindahl. 1. Reduce Your Household Expenses. In California, we have some of the highest 3. Be an Aggressive/Conservative Inreal estate prices in the nation so reducing vestor. Although it may sound like an living costs can be a sacrifice. One move oxymoron to be both aggressive yet conthat I have seen many real estate moguls servative, it isn’t. It’s all about planning. make is that they start off their portfolio Continued on pg. 9 with a multifamily investment. For ex- Private Placements • Group Investments LLC/Partnership Agreements • All 50 States Real Estate Syndication Lawyers www.SyndicationLawyers.com For information, call: 949-855-8399 Looking for a Turnkey Rental in Kansas City? ebsite The W nched t Lau ut tha Deb Our zine! Maga CASHFLOWCOWS.com Sign Up Online for our Pocket e-Mail Listings! CashFlow Express • Page 3
Slide 4: A CPA/Investor’s Analysis By Mathew Owens, CPA www.ocgproperties.com Focus vs. Diversification M ost of what has been drilled into our heads about investing in mutual funds, CDs paying down our mortgage and diversifying is nothing but smoke and mirrors. The financial services companies like Fidelity, Charles Schwab and financial planners are the ones making all of the money. The problem is that most people have very little financial education in order to invest for retirement properly so they hand over their money to someone they HOPE will have the right knowledge base to safely increase their wealth. The problem is that these investment types are HUGELY RISKY. These types of asset classes, paper assets, do not allow the investor control. Then during market crashes, all most investors can do is watch helplessly as their wealth gets whipped out along with their financial security. If you have more control over your assets then you are not affected as much by market crashes. For example, if you invest in assets like real estate that produce cash flow through rental income after all of your expenses are covered, if the real estate market and stock market crash you are still in great shape. While everything is crashing you are still receiving your rents and do not need to sell the asset. In- vesting in non-paper assets (i.e. not mutual funds or CDs) allows you to use leverage as well, which increases your wealth by making your money work harder for you. Most financial planners will tell you that using leverage increases risk. That is not always the case if you have the right financial knowledge to control the investment and enable safety controls on your leverage use. They will also tell you that real estate is a risky investment. The reason for that is that financial planners typically lack the financial knowledge about how to control real estate and make it profitable. Most financial planners put people into paper assets where the investor does not have control and therefore it is hugely risky to use leverage. In real estate investments the value of the property should not be based on the “opinion” of an appraiser but on the income that it produces through rents. The value of the rental real estate is dependent on jobs, salaries, demographics, local industry, and supply and demand of affordable housing. In a housing crash, the demand for rental units often goes up, which means rents increase causing the value of your property to increase. You can control rental real estate and which geographic areas you invest in unlike paper assets that allow no control. Financial intelligence is the key to increasing your control over your investments. It’s extremely important to continue to increase your financial intelligence in order to protect yourself. Unfortunately, financial intelligence is not taught in schools because such a large portion of the population, including teachers and politicians, do not have a very high financial IQ. When financial advisors say that an increase in returns means an increase in risk, they are right when speaking about the paper assets they recommend to investors that they make major commissions on BEFORE showing performance. They are wrong when speaking for all assets. Financial advisors are simply salespeople. Most people invest in paper assets such as Diversification is not required if a person knows what they are doing.” So if diversification is a protection against ignorance then when you diversify who’s ignorance are you protecting yourself from? Your ignorance and your financial advisors’ ignorance? Focus, not diversification, is the key to more sophisticated leverage, higher returns, and lower risk. The point I am trying to make is that if you increase your financial intelligence about specific asset classes, like real estate, you will learn how to control your own financial security and wealth creation, instead of relying on some financial advisor who probably does not know what they are doing. Look at the massive Most financial advisors recommend diversification but they do not really diversify. savings, stocks, bonds, mutual funds and index funds because they do not want to take responsibility and control over their financial well being. All they want is to turn their money over to an investment advisor who hopefully does a good job. Out of sight, out of mind. If people want more control, the first thing they need to do is increase their financial intelligence and, hopefully increase their financial controls and leverage ratios. Most financial advisors recommend diversification but they do not really diversify. First they only invest your money in one asset class, paper assets. Second, mutual funds are already diversified investments which are invested in a pool of good and bad stocks which does not increase the value or decrease the risk of the investments. Professional investors DO NOT diversify. Warren Buffett put it perfectly when he said, “Diversification is a protection against ignorance. wealth transfer that just occurred when the market crashed while bailing out the banks (i.e. the top 1% wealthy individuals increased their wealth while the middle class and poor decreased in wealth). This happened because most people do not have the financial intelligence to protect themselves. Starting to get financially educated is the key to wealth creation. So get to the bookstore and start reading. Take classes on financial intelligence and ways to increase wealth. It is key to your success and preserving your wealth so that financial predators (i.e. the government, financial advisors, and large mutual fund peddling companies) do not take all of your wealth away by investing it in asset classes that do not allow you any controls over those investments. To contact Mathew Owens, please see OCG Properties’ advertisement below. REI Voice™: the Voice of the Profitable Real Estate Investor and the most recent endeavor of SJREI Association™ The SJREI Association provides the education and networking necessary to enable individuals to make wise, profitable investments. Whether you have yet to purchase your first investment property, or are working on your hundredth deal, you’ve found the Bay Area’s most dynamic investors association.           Receive REI Voice™ Magazine for $19.95 — that’s 35% off the newsstand price! http://www.reivoice.com/subscribe CashFlow Express • Page 4     
Slide 5: Jump Start a New Year of Success By Geraldine Barry Founder of SJREI and REI Voice t’s a New Year — time to reevaluate, improve and refine our daily habits and actions for success. Small, incremental changes can reap big rewards in terms of productivity and business opportunities. As a planner myself, I understand the significance of establishing goals to create new outcomes. If we can break those down into smaller more manageable components we can achieve results more quickly. Here are some things to consider as you plan for another year: • If you don’t like things in your life you have the power to change them by simply changing yourself — things don’t change, but you can! Any little modification can make a difference — an introduction of something new, an exercise routine, a daily reading schedule, journaling, or simply bonding with your family. Cash vs. Cashflow, pg. 6 I tic but now as I grow and learn to navigate this game called life, I have come to embrace this gift that I have been blessed with every day. How do I do that? I start my day with a prayer of gratitude naming the things that I am grateful for — my family, my warm cozy home, my friends, a hot cup of tea, a great book, quiet time to think, process or write, my warm SJREI business community. By appreciating these things, and so many other seemingly trivial things I am happier, more content and I realize that what I appreciate grows more secure, and becomes more defined in my life. Try it — I think you will like it too. yourself, this is a process it does not happen over-night. • Lastly, live in the moment — whatever you are doing give it 100% of your attention. Walking the dog, having tea with a friend, working, talking to your children be present, enjoy that moment. Your family and friends will love you for this level of attention — very few people can truly do this. Be wary of electronics they can be thieves of our time, and our spirit...the things that renew you are not material — they are love, companionship, friendship, family, community, giving back. Be brave, do whatever it takes to accomplish new results — Make 2012 your best year yet! Geraldine Barry is founder and president of SJREI Association the premier educational and networking association for real estate investors in the Bay area. Under Geraldine’s leadership SJREI has grown from a half-dozen investors to a vibrant three chapter organization with over 400 investors attending monthly meetings. In addition to leading SJREI, Geraldine is the frequent host of the radio program, Going Beyond Real Estate, a regular guest on the nationally broadcasted NTDTV, publisher of award winning publication REI Voice Magazine, and producer of the annual Bay Area Real Estate Expo. Geraldine resides in Silicon Valley, and is the proud mother of Colin and Claire, her two children. Contact Geraldine Barry at: sjrei.geraldine@gmail.com If you get nothing from this article, please get this. First, if you ever expect to create wealth and experience any sort of financial independence while you’re still young enough to enjoy it, you’ll need to adopt, embrace and implement a residual mindset. Second, don’t get stopped in your pursuit of residual income by confusing the value of cash and cashflow. Making the transition from accumulator to residual-incomer and creating wealth can also take some time, but by maintaing a focus on cashflow, the time it takes will be nothing in the remote vicinity of the 40 year traditional alternative. Matt Theriault is an author, entrepreneur and host of the fastest growing real estate investing podcast on iTunes. Visit www. EpicProfessionals.com for more information and to retrieve his free real estate investing course How to Do Deals — No Money Required. E D I AT E C A S H F LOW D WITH CONFIDENCE PROFILE OF YOUR FUTURE PORTFOLIO Print • Online • Network • There are people who drag us down — nay sayers if you will. Remove those people from your life. If they are your family members, show them a new way to be by mirroring for them your great new attitude. My Dad shared with me • How you present yourself to the world (he ran a company, and had a family of makes a difference, how you look, how six daughters, two sons and a wife!) that you speak, how you interact with others, sometimes he survived by “psychologiwho you interact with, what you read, cally absenting himself” from negative what you spend your time doing. What situations. iscover the lowest-risk, highest-quality residential investment properties in the How do do that? Tune them is your message to the world? 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Slide 6: M ost of America was raised in a household where the road to wealth and success was paved with the ideology of going to school, getting good grades, getting a good job, investing 10% of your income, maxing out the 401(k), cutting up credit cards and clipping coupons. If this is you, STOP IT! That system is broken. It’s this “traditional” road to success that could potentially be the to travel. For if someday doesn’t arrive, it’s not like you can go back and try again. You’re essentially at the end of life’s road once you discover if it worked for you or not. And what if it doesn’t? Then what?! There is a road less traveled that deserves your consideration. Additionally, you might want to know that it’s faster and easier, as well. I’ll prove it to you. The alternative road exists within a “residual” mindset. The group that chooses this road lives life quite differently. They are just squeaking by and only 1% of the population actually reaches the age of 65 “wealthy.” A “residual” mindset is what this wealthy 1% has in common. It has been said that success leaves clues. In this context, however, success is leaving evidence, isn’t it? As more and more studies and research are conducted, the concept of residual income and its wealth-creating power are becoming more common knowledge by the day. That being the case, one has to staring you in the face? I agree, there’s nothing sexy about $300, it has little value today. It might buy you a pair of designer jeans or a fancy dinner and a bottle of wine. However, $300 of cashflow to the residual-incomer has tremendous value. You see, as I’m writing this article, the financial institution ING is advertising a 1% interest rate on their money market account. I choose to use ING as an example because it’s just about the most generous savings account available today to the How to Create Wealth: Cash vs. Cashflow By Matt Theriault, EpicRealEstateInvesting.com and www.REICcashflow.com demise of society as we know it, if not the entire country itself. It’s no secret that the current economy is a trying one for most. However, for some, it’s the most profitable and successful economy they’ve ever experienced, or will ever experience again. Why are some succeeding today while most are not? What road are they traveling? What are they doing differently? I could draw your attention to a number of differences between the two group’s actions, yet what ultimately separates the two is little more than mindset. Those traveling that antiquated traditional road to success possess an “accumulation” mindset. This group wakes up every day and goes to work for their money. Their focus, whether consciously or subconsciously, is placed on exchanging time for dollars with the hopes at some point in their life their income will rise, and their investments will perform, to a level that someday they will have accumulated enough to retire. Sure, this mindset has worked for some, but it’s failing the vast majority of our population. The reason being is that this vast majority doesn’t start accumulating (i.e. saving, investing) early enough or possess the discipline to follow through to the end. Accumulation takes time, a lot of time. This entire approach to creating wealth is based on a principle called “someday.” Unfortunately, someday never seems to arrive. And for the few of which someday does arrive, it’s a 40 to 50 year journey. Contrary to the “safe” label this road to wealth has been given, it’s a risky road wonder why more people don’t apply this knowledge once it has been learned. It’s simple, actually. People looking to make the transition from “accumulator” to “residual incomer” confuse cash and cashflow. Within the real estate investing arena, this confusion can be clearly illustrated, and here’s how... One, among many, of the attractive attributes real estate investing possesses is that it can produce two types of income. Real estate can produce large amounts of cash through short term strategies like fix-and-flip and wholesaling. Real estate can also produce smaller amounts of monthly cashflow through longer term strategies like buyand-hold and lease optioning. The accumulator looking to transition to residualincomer will frequently, if not always, choose a $30,000 fix-and-flip cash pay out over a $300 a month buy-and-hold cashflow. Although they have the greatest intentions of becoming a residual-incomer, their accumulation mindset is so ingrained that they can’t resist the big cash pay outs real estate offers. It’s their mindset that prevents them from recognizing the true value of $300 of monthly cashflow. And because the accumulator tragically confuses $300 of cash with $300 of cashflow, they continue to exchange time for dollars always in search of that next “flip” and never take that first step toward becoming a residual-incomer. Can you blame them, though? It’s easy to get caught up in the moment, right? What’s so appealing about $300 of cashflow when you’ve got $30,000 of cash average consumer. So I’ll ask you, “How much cash would you need to deposit into that ING account to generate $300 of monthly cashflow?” $360,000! An ING money market account balance of $360,000 would have to be maintained to generate $300 of monthly cashflow. In summary, $300 of cash is worth $300 of cash, but $300 of monthly cashflow is worth $360,000 of cash sitting in the most generous savings account available today. Do you get the difference now? And here’s more... Which is a longer, not to mention more more difficult, road to travel? Accumulating $360,000 of cash? Or, creating $300 a month of cashflow? You know your situation, skills and resources better than I do, but creating $300 a month of cashflow not only sounds faster and easier, it is do-able. It’s realistic, as opposed to the traditional-get-rich-slow program that has the country by the balls. Alright, alright... I can hear it now. No, $300 of cashflow isn’t going to make a dramatic difference in your lifestyle. So what would? $5,000 a month? $10,000 a month? By performing the same math with today’s interest rates, you would need to accumulate and deposit $12,000,000 of cash into that ING account to create $10,000 a month of cashflow. Again, which is a longer more difficult road? Accumulating $12,000,000 of cash? Or, creating $10,000 of monthly cashflow? Continued on pg. 5 wake up every day with a focus of creating or managing systems to work for their money as opposed to they themselves working for their money. Their focus is placed on creating residual income, whether through a business system or their money earning money itself. They know that once their residual income exceeds their expenses, the accumulation of assets and the creation of wealth will essentially happen automatically whether they get up and go to work or not; And it doesn’t take 40 years for wealth to be created in this manner, either... far from it. Contrary to the “risky” label this road to wealth is commonly given, it is the road that gives you the greatest shot at creating wealth. Maybe this is news to you, maybe it’s something you’ve known for a while or maybe it’s just plain and simple common sense. Regardless of where you stand, one would be hard-pressed to formulate a solid argument against it. The writing is on the wall. Depending on which source you reference, the “traditional” road is failing 90-95% of the country, 4% We give people a FREE game plan of how to build a real estate portfolio in their spare time so they can retire in the next 3 to 5 years. Get YOUR “game plan” and a FREE copy of “The Strait Path to Real Estate Wealth” at: www.reiccashflow.com CashFlow Express • Page 6 805.241.7828
Slide 7: [ eturn on investment. That’s the whole point right? Being able to accurately determine what your dollar is producing is a critical step. Not just after you’ve made your investment, but it is also a critical step in making decisions on future investments. For instance, accurately predicting the return on an “all-cash” purchase, versus one that is financed can produce very stark results. Let’s take a look at a typical incomeproducing residential property. The first step is to identify all the variables we are working with. In this example, we are calculating a rate of return over the course of one year. Net Operating Income (NOI) Every month, you get a happy rent check in the mail. This is your “Gross Rental Income.” Now, let’s take a look at the cost of your investment. For most properties, these are pretty standard and easy to identify. For this example we will assume the basics: Insurance, taxes, property management, and a maintenance reserve. We will also assume that the property has a leased tenant in place. If you did not have a leased tenant in place, you would consider this calculation as if it were part of R Calculate Your ROI Return On Investment a pro forma. You would have to consider things like “Vacancy Rates,” “Rent Bumps,” and “Tax Consequences” and deduct them from your “Gross Rental Income.” Here is what this calculation looks like: Gross Rental Rate + $12,000 Taxes - $1,000 Insurance - $500 Property Management - $1600 Maintenance Reserve - $360 Net Operating Income = $8,540 That’s it. Simple right? When you hear talk about “Cashflow”, it is your NOI that we are talking about. So, we have identified our “Gross Rental Rate.” and our “Net Operating income” or “Cashflow.” Let’s go ahead and calculate our actual ROI for the year assuming that the purchase price for this home was $85,000. There are two different ways we can go here. Assuming we paid cash for the property, the ROI calculation would look like this: $8540 / $85,000 = .1005 So using these assumptions, we have an ROI of 10%. You might be thinking to yourself: “Wow, what if I managed the [ written by Deborah Gordon is a Real Estate Investment Specialist at Invest Arizona property myself, or eliminated the maintenance reserve”. These are great observations, but we’ll talk about that later. Financing vs. All-Cash Purchase Let’s assume you financed this property. Again, we’ll use some typical numbers to illustrate. After your 25% down payment ($21,250), you leave behind an amount of $63,750 that is financed at 6% for 30 years. Here is what your calculation would look like: Gross Rental Rate + $12,000 Taxes - $1,000 Insurance - $500 Property Management - $1600 Maintenance Reserve - $360 Principle and Interest - $4,586.52 Net Operating Income = $3,953.48 So, that’s a big difference right? You bet. Let’s take a look at the difference in your actual ROI. Remember, your Cash Flow is calculated against the dollar amount you have invested. In this case your total out-of pocket investment is your down payment of $21,250. $3,953.48 / $21,250 = .1860 So you can see that by financing this particular property, you are actually receiv- ing an ROI of 18.6%. The Value of Your Time Remember those thoughts you had earlier about reducing things like maintenance reserves or eliminating property management? As you can see, calculating your ROI is a simple and powerful tool that you can use to make decisions on potential investments. But there is something missing from this equation — the value of your time. For some reason, we have the tendency to consider our own time as some infinite resource that we can draw on as needed. You might be in a position to commit hundreds of hours a year to seeing your investment produce. But this has a tendency to make a moving target out of your investment goals and skew your perspective when it comes to realistic expectations. How you approach the value of your time is probably the most significant yet overlooked detail to determining your ROI. Each person will have a different view of the value of their time, but let’s use a simple exercise for illustrations sake. Let’s use the income of the average passive real estate investor. We will assume this investor (you) is a professional making $100,000/year at your current job. As far as your employer is concerned, your Continued on pg. 10 CashFlow Express • Page 7
Slide 8: An Innovative Approach About Leonardo Management, Inc. to Property Operations H Leonardo Management & the Nested Action Cycle By Daniel Cunningham President, Leonardo Management, Inc. ne of the interesting things about managing multi-family apartments is that two similar apartment communities, in close proximity, can have such vastly different levels of success even though the product might be quite comparable. Vacancies and rentals can vary greatly among similar product types within the same market. One property can appear well-kept and welcoming; the other, completely uninviting. Staff at one property may convert a greater number of tours into leases than the other. What makes the difference in a well-run, highly occupied property isn’t luck, and most of the time it isn’t even related to the physical property itself. The most significant factor, responsible for at least 90% of the success in this business, is the local staff running operations. Behind every successful property is a manager who is passionate about the job and, even more important, is thorough and consistent in the day-to-day management—a manager who really sweats the details. And therein lies the problem. There are a LOT of details involved in running any apartment building, and trying to “sweat” all of them can cause burnout in even the best managers. You see, an apartment building is a self-contained, (hopefully) self-sustaining business, and a complicated one at that. It has income and expenses, labor costs and marketing plans, budgets versus projections, and even human resources and legal matters that must be dealt with. Often the lion’s share of coordinating all this falls to a lone property manager. There are a bazillion moving parts, hundreds of levers to manipulate O to maximize profit, and dozens of distinct roles a manager must play throughout the week to get it all done. On any given day, a manager may act as psychiatrist, counselor, contractor, lifeguard, janitor, police officer, accountant, salesperson, IT technician, gardener, cheerleader, marketing rep, and lawyer, just to name a few. I’m getting tired just writing about it all and, frankly, it’s more than some people can handle if they aren’t able to prioritize. It’s tremendously difficult to keep focused on what’s most important when there are so many demands on one’s time. And when an individual property can be worth tens of millions of dollars with revenues of several million dollars a year, losing focus for even just a short time can have serious financial ramifications. I learned all this the hard way. I had been an asset manager most of my career — most notably director of asset management for AIMCO, one of the largest owners of apartment buildings in the United States. So when the developer for whom I worked in 2007 asked me to start an inhouse property management company for them, I figured it would be a piece of cake. I couldn’t have been more wrong. The year we took over property management for the 1,300 units owned by that developer turned out to be one of the most challenging of my career. My prior high-level “asset management” experience had imprinted a hands-off instinct, which left too many details to the on-site staff, and the wheels started to come off the cart. For every process that lacked a solid, welldocumented procedure in place, the managers would quickly default to whatever habits they had developed under a pre- eadquartered in Santa Monica, Calif., Leonardo Management was established in 2008 by veteran real estate executive Daniel Cunningham and has grown quickly to provide third party management services to commercial office, retail and multifamily clients throughout California, Arizona, Colorado and New Mexico. Leonardo’s customer service and leasing was recently ranked #1 in the entire country by Ellis Partners in Mystery Shopping. In conjunction with its proprietary software which automates on-site operations, Leonardo offers a one-two punch in leasing and operations, which adds unprecedented value to their clients. Representatives can be reached at: info@leonardomgmt.com or at 213-674-4140 vious company or whatever process was easiest for them. Even when we did have a defined process, I found that if we didn’t constantly audit compliance with the procedure, invariably it would be neglected in practice. We adopted a very “reactive” mode of management, whereby we would get one problem under control just as the next one would arise, with no opportunity to plan and get ahead of the game. That was when I invented the “Nested Action Cycle” (the “NAC”) approach to property management. I mapped out every daily, weekly, monthly and annual task that needed to be done and worked out a system to track them so that we’d never drop any balls on the operations side ever again. The shorter cycles nested within the longer cycles, ultimately producing a clockworklike conductor of management activity that covered the gamut of everything a manager needs to think about to efficiently and effectively operate an apartment community. By “dialing” the NAC to today’s date, the nested action cycles would instantly produce all of the tasks a manager should be doing on that date. The NAC was difficult to formulate, but amazingly straightforward in its application. Taken as a whole it actually provides an entire year’s worth of explicit day-by-day activities that, when followed in a regular, disciplined fashion, without question will result in a meticulously managed property that will enjoy higher occupancy, lower expenses, and better resident satisfaction than neighboring competitors, with the end result being a more profitable business. The NAC gave us such an advantage in operating these properties that I was inspired to buy that management company from the developer and establish a pure third-party management company of my own, which would be based on the principals established by the NAC. That be- came Leonardo Management and we started using the tag line “The Science of Property Management” to recognize this new, methodical way of approaching operations. But then we took things once step further. Once the NAC was formulated and in use by the property managers within Leonardo, we then used the same approach to develop a software platform which we called the Leonardo Intelligent Property Management System (IPM). Now all our managers have to do is log into IPM every morning and it tells them exactly what they need to be doing that day, that week, and that month. Like a friendly electronic Regional Manager looking over their shoulder offering guidance, IPM never takes a vacation, never gets distracted with other issues at other properties, and never, ever forgets what needs to be done. It sweats all those details I mentioned earlier and so now we can manage more properties with fewer regional staff and still make sure balls never get dropped. Owners can log in any time to see what action items are complete and when they were done. It provides unprecedented transparency and our clients love it. We’ve had lots of requests to license the Leonardo IPM and we’re taking an honest look at that possibility. But until that time comes, Leonardo Management benefits by having a real and proprietary value proposition to offer property owners — a way to do things better. You can read more about us and Leonardo IPM at www.leonardomgmt.com. We’d be pleased to offer a demo to any interested property owner. To receive a free demo, please contact Leonardo Management at 213.674.4140 or email info@leonardomgmt.com Your asset deserves a first-rate Property Manager! Leonardo Management provides commercial office, retail and multi-family management services in AZ, CA, CO, NM and NV. Log on to www.leornardomgmt.com for a free consultation and management fee quote. On line all the time Free education, national speakers, YouTube videos, networking, learn from the best how to invest www.SantaBarbaraREIA.com 866-853-0803 All SBREIA meetings are held here www.PersonalPowerProject.com Go Green and Kick Gas! 213-674-4140 ph info@leonardomgmt.com www.FessParkerSantaBarbaraHotel.com Take an educational business vacation CashFlow Express • Page 8 www.NHBig.com Home of the 20K Rent Ready Properties
Slide 9: 6 Keys for Financial Freedom, pg. 3 The amount of risk you take with your money should be related to your age. The younger you are, the more risk you can handle. But, don’t be foolish: One should never invest in something they do not fully understand. If stocks interest you, start learning about the market. Learn how to decipher financial statements. If real estate is your game, start attending REIAs (Real Estate Investment Associations). Also, don’t get greedy! I’ve known investors so desperate for that 20% return that they gave their money to unscrupulous companies only to never see their principal again! Guard your principal, settle for less interest if need be. If the money is lost, it can take years to rebuild. 4. Don’t Follow the Crowd. Most Americans are broke, why on Earth would you follow their bad habits? Trying to keep up with your neighbors can destroy your chances of financial freedom. Also be mindful of competition between family members. For example, some families love to outdo each other in their travels. It’s non-stop cruises, trips to Hawaii, and weekends in Las Vegas. But guess what? They’re BROKE! Some people who know me may make fun of my frugality. They can jest all they want because I’ll be laughing all the way to the bank! Many wealthy people are odd and eccentric, I used to think that money made them like that, but now I realize that they just don’t care about what others think. It was probably this defiant attitude that helped make them rich in the first place. 5. Saving is Sexy, It’s Fun to Be Frugal. If saving is a deplorable chore, you won’t do it. If clipping coupons and wearing offthe-rack clothes is beneath you, then you need to change the attitude. Start making a game out of saving and being frugal. See how much money you can put away in the cookie jar each week. Before you spend a dime, consciously think about the action you are taking. Figure out if there is a better way to get what you need at a lower cost. Can you buy it second hand? Does someone else you know need the same thing? Can you barter an item or service in exchange for what it is you need? Hold on to your pennies because they can accumulate into a fortune. 6. Step it Up a Notch. Let’s get one thing straight, the 4-hour-work week is a complete myth. The reality is: Success doesn’t come easy. If it did, everyone would have a few million dollars in their bank account. The wealthy people I know who were not born with a silver spoon toiled endless hours to get where they are. Sometimes they worked two jobs just to be able to pay off college debt or save enough money for a down payment on a home. Others returned to school and juggled employment and family obligations for many years. If you are not happy with your lot in life and you feel you deserve better, don’t just wish it to be so and wait. TAKE ACTION. Don’t be lazy, don’t make excuses, and don’t feel sorry for yourself. Stay positive, keep focused and you will see abundance before you know it. I hope these ideas will inspire and light your path towards financial freedom. I welcome your comments, please contact me at: pliagas@aol.com or 310.499.9545 Investor Spotlight MARCK B. de LAUTOUR, MBA Marck de Latour is a native New Zealander currently living in the Kansas City area. He graduated from the University of Missouri, Kansas City with an MBA in International Business Management. For the past 10 years, he has been a full-time real estate investor, specializing in the pre-foreclosure market in the Kansas City area. Marck currently owns over 90 properties, all acquired using techniques that he developed into a program, which he created to help others. He has a thorough understanding of all phases of the foreclosure process, from pre-foreclosure negotiations, acquisition, courthouse foreclosure auctions, rehab, leasing and property management. Be sure to give Marck a ring to learn how easy it is to start your cashflow portfolio. Marck de Lautour SBD Housing Solutions www.sbdhousing.com Ph: (816) 994-9401 DAN HOLZER - JVD ASSET MANAGEMENT Dan Holzer is the chief investment officer of JVD Asset Management located in San Diego. JVD is one of the top 10 purchasers of first trust deeds at foreclosure auctions in San Diego County. In fact, they have purchased well over $25 million in distressed real estate. What is the secret to their success? “We have developed our own proprietary software to select profitable homes with a 94% accuracy,” says Holzer. Past returns for investors ranged from 10% to 20% ROI. If investing in California distressed properties is of interest to you, be sure to contact Dan with JVD Asset Management. JVD Asset Management, LLC www.jvdassetmanagement.com Ph: (619) 794-1004 J o in U s In DALLAS “Make the Market Work for You!” $95,000 1,837 SF Bldg 3 Units 10.42% Cap Rate $149,000 1,612 SF Bldg 1 Unit 8% Cap Rate $120,000 2,820 SF Bldg 4 Units 8.75% Cap Rate Don’t Miss the 2012 Real Estate Investor Expo If you are looking for a way to break into the real estate investing business, or simply to make more money as an investor/agent then this event is for you! Get your spots for the 2012 Expo today at: The Expo is NOT a pitch fest. The expo offers more than 30 class opportunities to learn about the functional areas of real estate investing. www.REIexpo.com Join Team Gerchick in 2012 for their 2 Day Real Estate Seminars in Phoenix All hard work brings a profit, but mere talk leads only to poverty. (Proverbs 14:23) Learn firsthand and from the Best in the Arizona Marketplace. We’ll cover hot topics about investing and the current commercial real estate market. We’ll teach you to analyze investment opportunities yourself with free of charge software and you’ll be among the first to obtain our new real estate investment book also at no charge. CALL US FOR SEMINAR DATES AND DETAILS. Join Our VIP Social Network Linda Gerchick, CCIM Associate Broker, Team Gerchick FREE Membership * LIVE Chat http://realty411guide.ning.com Find Events, Deals, Friends & MORE Questions? info@realty411guide.com Linda@justsoldit.com e Robinson Group, LLC 3420 E. Shea Blvd., Suite 200; Phoenix, AZ 85028 Office: 602-256-1415 Cell: 602-688-9279 w w w. Ju s t S o l d It . c o m CashFlow Express • Page 9
Slide 10: Resource Directory Invest Arizona, pg. 7 Emerge Investments, LLC Commercial Real Estate Investment www.EmergeInvestmentsLLC.com Karen Baggett Managing Partner 949.481.0011 Successful track record Passive high yield returns Specialized in multifamily Qualifies for your 401k or IRA after-tax worth is about $63/ hour. With that in mind, how many hours per month are you willing to commit to property management? Is the cost of your time competitive with that of a property management company? How many hours can you devote to marketing your rental property? How many hours can you devote to showing your property? How many hours can you devote to screening tenants? How many hours can you devote to managing maintenance and repairs? Can you do all this and still ensure the property is leased starting on day one of the investment period? Let’s look at the same ROI calculation (paid for in cash) but add some reasonable assumptions based on you managing the property vs. your property management firm. We will assume you spent a total of twenty-five hours marketing, showing, processing rental applications and leasing your property alone. Let’s also assume, you weren’t quite able to get the property leased in month one, so you only have eleven months of rental income. Here is what your ROI calculation (accounting for your time) might look like: Gross Rental Rate + $11,000 Taxes - $1,000 Insurance - $500 Self-Managed - $1,575 Maintenance Reserve - $360 Net Operating Income = $7,565 Your ROI $7,565 / $85000 = .089 or 8.9%. Again, this example is only meant to illustrate what your investment returns might look like if you viewed the value of your time the same way you view your cash out of pocket. You have spent almost as much in time getting the property leased as your property management company would have billed you for the entire year. To some, this is not only an acceptable expense, but an essential one. Some may not have the time to devote to being actively involved in their investments. It isn’t the point of this article to judge, only to emphasize how critical it is that you properly evaluate your ROI. Only then will you be able to accurately determine your investment’s real worth. Deborah Gordon is a Real Estate Investment Specialist at Invest Arizona. When banks say NO, I say YES! Dawn Rickabaugh, Broker, Owner Financing Consultant http://www.notequeen.com support@notequeen.com Seller Financing on CashFlow meetup group The Pasadena Cashflow Masters Group welcomes all levels of investors. We play Robert Kiyosaki’s Cashflow boardgame each month to learn the skills required for acquiring wealth. I personally look forward to connecting with you at one of our upcoming events. Pasadena-Burbank STEROIDS I About Invest Arizona INVEST IN NOTES Turn-Key Properties in Phoenix, Arizona Specializing in Residential Investment Properties (626)470-3477 For Information, Call 626.524.2712 www.usapropertyinvesting.com 888.616.3706 True Wealth is Created by Holding Properties Long-Term Doug Carver, Co-organizer nvest Arizona lifting a finger. is a turnkey Invest Arizona passive cashwas founded by flow real estate inJohn Badura, who vestment company. has been investing They buy quality, CEO John Badura (right) millions of dollars distressed single- with Rick Stannard. in residential and family assets, comcommercial real plete tenant-appropriate reno- estate for well over a decade. vations with a strong focus on After persistent requests from the major systems, such as: family, friends, colleagues 1) Roofing 2) HVAC and business associates, Ba3) Plumbing 4) Electrical dura created Invest Arizona to Invest Arizona then markets provide a truly turn-key soluand leases the homes to thor- tion to passive cashflow real oughly screened tenants, and estate investing. Today their professionally manage these team consists of seasoned real homes with their in-house li- estate veterans specializing in censed property management acquisitions, rehabilitations, company. Invest Arizona then marketing, financing, leassells these rental homes to in- ing, property management, vestment partners, allowing and dispositions. Their motto them to enjoy positive cash- states, “We Take Care Everyflow and great returns from thing.” Contact them and they day one — passively, without will prove it. www.buyholdrent.com Discover why Cleveland is the place to build your rental portfolio! no one cares more about your retirement than “u”. Invest in 2 of the Best Cash Flow Markets in the Country! Specializing in OUTOF-STATE CLIENTS! Over 100 long distance owners CashFlow Express • Page 10
Slide 11: inside our expos & mixers Above: LAPD cop turned real estate mogul Mike Barker with REO Bailout. Left: Premier Equity joins us from Alabama and Mississippi; Above: David Dziedzic from Arizona’s Housing Angels; Right: Chris Clothier and Mo Woods from MemphisInvest.com with publisher Linda Pliagas. Above: Sam Tunnel (right) with HSM Investment Group, Inc. joined our event from Kansas City, MO. Kathy Fettke (right) with RealWealthNetwork.com with Lori Hinrichs from TrueWholesaleHouses.com; Above: Kaaren Hall with uDirect IRA Services; Right: Leonardo Management Team. Above photo (right): Sylvia Saldivar Valdez representing Black Belt Investors. Above photo (left): Anthony Patrick and Richard Edrosolin with WhiteRock Capital. Above photos (left): Karen and Stan Baggett with Emerge Investments, LLC; (right) The HomeUnion Services team had a great vendor booth. Your asset deserves a first-rat Property Manager! Leonardo Management provides commercial office, Left to right: Team Gerchick showcased deals from Arizona; Tom Wilson (wearing a tie), an investor/broker, likes the Dallas market; Matt Theriault from Epic Professionand multi-family management services in AZ, CA, CO als and his assistant, gave away books; Ace Capital Group spoke on land banking; NV. Log on to www.leonardomgmt.com for a f and Cassandra Harris from the Royal Medals Group taught guests about investing in gold. Be a Guest at Our Next Expo for FREE ! 213-674-4140 ph info@leonardomgmt.com consultation and management fee quote. Learn From the Top Experts in the Nation! www.realty411guide.com/network Real Estate sign up online at: FREE Expos & Events ~ Online Webinars eBooks ~ Discounted Deals & More! Wealth INSIDE: Get Out of the Rat Race with Passive Income Discover Why Now is the Time to Buy! Learn from the RE Divas Print • Online • Network www.realty411guide.com | Vol. 4 • No. 1 • 2011 Vol. 1 • No. 4 • 2011 411 A Resource Guide for Investors Ca$hFlow EXPRE No. 1 / Vol. 1 2012 SS Sam Sadat The Master of Motivation Speaks Learn How to Market Wea Create Stock lth Today Passive Inco me for Toda Welcome to Sam’s RE Club at the Beverly Hills Country Club Discover Why Investors Around the World Trust Make 2012 the Year of SUCCESS! The Leaders of the Memphis Market Understand the Needs of Long-Distance Landlords Network with Successful Investors and Financial Industry Leaders! CashFlow Express • Page 11 estate inves ting, a strong MLM trading stocks, build ing succeed. It’s business, etc. You will not like trying can remember a field of sand. to grow corn my first time in ing Robert playnate and you’l The seeds will not germ Kiyosaki’s l end up with iCashflow board game ing to harve next to nothabout eight st in the fall. ago and how years How, you it ask, does started a this relate chain of events to the that continues Cashflow to this day. game? Well, after What stuck playing with me most the game was not the a bunch “how to” of playing of times, I the learned game but the the “how people that to” of I met at the event. Thes getting out By Tyrone e were not like of the Jackson comp TheWealth rat race, but the normal anies and yInvestor.n people in I still products with et you are my life that was not which familiar. able to would tell me take what I I was crazy Doug If you’ve You can be learn for trying to Carver (left) ever open start my own play the Cashfl and Chris Hanso ed a can from the game ed Coca Cola rich from of n dison real estate ow game to and group membe apply it to felt refreshed a hot summer day and business or owning real estate and tradin rs. my that financial and invigorate g stocks. life financial realnot own the freedom was d, why We’ve all without a stock? It’s situimpossible heard the stead a product you ation. How know with realized that story of the little old lady ever, I people I met y well-paying job. a story you the who lived The When I say were excit understand. my new Cash time I was spending and worked modestly ed about learn ing and expa “a story you with flow friends as a school I mean to understand,” nding their the way I teacher for 40 say that you how to achie knowledge thought abou was changing years. She on ve financial understand t mone financial futur neve earned more were activ freedom. They e. I no longe y and my how the Coca than $35,000 r e inves stock mark r viewed the year, owne per Cola the stock mark tors in real estate et as a giant d a modest Corporatio and rigged syste et. They were losing mone n makes home, and shared ness owne m for y. her life with money, or rs with a passi small busidous opportuniI began to see the treme to cats. Once two for creating on and visio nshe died, her ties in the press it in exmore finan n tate market sinking real tives disco relaWall cial success their lives. even as many esvered a $150 Street terms Over in were losing life insurance ,000 , you for prosperity all, they had a mind money on dealspeople I knew understand policy and set that I like to bad. Over that had gone million in $1.5 flow” mind all, I saw for call a “Cas stock the company how set. hthe first time portunities to the elem s that she left earns all around A lot of peop oprevenue. The entary schoo me to creat even as the scholarship more l’s e wealth does not provi le complain that Kiyo newspapers fund. bottles and saki talked const of the “Gre cans of The national how people de the specific details antly at Recession Coke that media loves should imple on .” Today as a to air these Coca egies to creat ment his stratresult of my stories. It Cola sells e financial volvement seems aroun there are ongoing inbooks and freedom in playi sever the world each d programs. his Cashflow even ng and organizing who fit this al old ladies Truth is he spells out local ts in South the larger the day, seemly uniqu never a stepI have a profile year come building long- by-step “how to” thriving real ern California, pany’s profi after year. for the past ten estate inves business. It t. Over that be? How could years Coke What he does term financial freed ting was after speak om. stock (sym KO) has risen of my Cash ing with one Investing bol tant, and that teach is far more impo flow friends from aroun in stocks share to a ris how to creat d $40 per estate inves who was a world’s most is not the high flow” mind tor real e a “Cashset. Kiyosaki vested in Coca of $71 — $1000 instart wholesalin that I was encourage fact, at its core, challenging task. 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You May Also Join by Calling: 310.499.9545 Publishers of Realty411 Magazine www.Realt Continued on pg. 2 or email: info@realty411guide.com y411Guide. com
Slide 12: Create Stock Market Wealth, pg. 1 Each one of these companies also pays dividends to shareholders. What’s a dividend? A dividend is your piece of the company’s profits distributed on a quarterly basis. So, for example, Coke currently pays .41 per share every three months to its shareholders. If you currently own 100 shares of KO, you would receive a check in the amount of $41 in your mail box every thirteen weeks. If you owned one thousand shares of KO, you would receive a check for $410 every quarter in your mail box. Imagine for a moment you owned 5,000 shares of Coca Cola stock. That being the case, your quarterly dividend check would be $2,050 per quarter. That’s over $8,000 of all, you never have to leave home or step foot in a corporate board room to collect your share of the company’s profits. Reinvesting Your Stock Dividends Many investors choose to reinvest their dividends back into the company’s stock. Dividend reinvesting is a fast and popular way of building wealth over time. Question: How fast could you build wealth if instead of waiting for Coca Cola stock to rise, you strategically “build a position?” Building a position means that you purchase additional shares when the stock increases five dollars above your last purchase point. At the Wealthy Investor program, I teach this technique to selfdirected investors who trade stocks from home. Building positions on long-term dividend paying stock allows anyone with an open mind to change their life financially. Growth Stocks In Today’s World per year in passive dividend income. This kind of passive income results from being a shareholder in one of the largest multinational corporations on the planet. Best CashFlow Zones CHICAGO, IL MEMPHIS, TN ATLANTA, GA BIRMINGHAM, AL KANSAS CITY, MO PITTSBURGH, PA More to Come TAKING THE RISK OUT OF REMOTE INVESTING Now let’s take a look at two growth stocks. What’s a growth stock? In the Wealthy Investor program we refer to a growth stock as any stock that is not a member of the Dow Jones Industrial Average. That would include a stock like Google. In the past 10 years Google’s stock price has gone from $100 to over $600 per share. A $1,000 investment would be worth over $6,000 today. Not bad. Another growth stock that has soared over is Amazon. com. Over the past ten years, as on-line shopping has become more of a main stay, Amazon. com (symbol AMZN) has made shareholders rich. The stock price has gone from a low of $20 to a high of over $200 — $1,000 invested ten years ago would be worth $9,000 today. That means a $10,000 investment ten years ago would be worth $100,000 today. Those who have a financial education and understand the power of investing in e-commerce have benefit greatly. Here’s how: A $100,000 investment in Amazon.com ten years ago would be worth $1,000,000 today. So what’s’ the moral of the story? Anyone can create wealth in the stock market just by paying attention to the products and services they see around them every day. I’d like to think there’s a sweet old lady in all of Now thereÕs a way to remotely invest in single-family cash ßow homes for high us who deserves to be rich from income positive cash ßow. HomeUnionÕs unique Investment Marketplace provides investing in stocks. transparent visual access to the best national cash ßow Real Estate Investment Opportunities. HomeUnion platform brings together a supply chain of CertiÞed Property Providers. The Property Providers sell fully tenanted properties to investors and stay on as Property Managers. Several homes come with rent guarantees and maintenance warranties. HomeUnion provides post-purchase market intelligence, portfolio analysis, and management oversight to the investor. Try HomeUnionÕs unique Investment Platform and discover a whole new way to unleash Fully Managed High Income Cash Flow Real Estate Investments. More to Come Call (866)732-3220 email cashflow@HomeUnionServices.com Visit www.HomeUnionServices.com HomeUnion Services 2 Park Plaza, Ste 770 Irvine CA 92614 HomeUnion Services (CA DRE Lic# 01526904) operates investment property market places for traditional and IRA based property investing. The company is not a Financial Services, Legal or Tax Advisor Company. For any such services please seek help from appropriate professionals. When Hollywood actors and Silicon Valley executives want to increase their wealth, they turn to Tyrone Jackson. He’s the founder and creator of the Wealthy Investor program. Each month, Mr. Jackson teaches beginners and seasoned stock market investors how to produce monthly income ranging from $5,000 to $30,000. He’s also the creator of The Wealthy Investor’s Guide to Stock Market audio CD series. Visit www. TheWealthyInvestor.net for details. A frequent radio and TV guest, Mr. Jackson has been seen on CNNFN and NBC’s The Other Half. Send us your feedback on this month’s column. We’d love to hear from you. Please email feedback@the wealthyinvestor.net