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Magazine

www.NationalREIC.com Spring / Summer 2018 Issue FREE FOR NATIONAL REIC CLUB MEMBERS

National Real Estate Investors Club Magazine Published By: National REIC LLC & Z Publication LLC

How To Make $20,000+ Per Month Wholesaling Properties Part Time By: John Zwirzina

- Than Merrill Article - Kent Clothier Article - Randy Hughes Article

National REIC Visits Palm Beach REIA & Treasure Coast REIC John Zwirzina Robert Green Austin Green Jeff Green (Left to Right)

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Hey, Newbies! Did you Carefully Analyze that Rental opportunity? What an elementary question, no? But,…you’d be surprised how many real estate investors jump into to buying a rental property without thinking about the actual cash flow, and taking into account all factors. We should know, because we get asked to make loans all the time based on miscalculations by newbie investors of multi-unit properties. So then, what should one base a purchase decision on? You must look further than the prices of recent comparable sales in the subdivision. That’s dangerous! Really, the analysis is just simple mathematics. Here is a very basic example: Purchase of a 2-unit, 4BR/2BA duplex for $120,000, with an 80% loan. Each rents for $1,000/mo.

This is pretty simplistic, because it doesn’t take into account reserves for long-term capital improvements, such as roof replacement, major plumbing, etc., nor tax implications, such as depreciation. The point is that, depending on the financing, this could be either a virtually break-even proposition, or a profitable one. And, with hard money, one major additional repair or higher vacancy, and you’re in the loss column. The vacancy allowance is based the “real world”. If a tenant does not pay, the time it takes to evict, replace, and do some fix up could easily be 2-3 months (up to 25% annual vacancy in dollars). Ever see those “models” with 5% vacancy allowances? Definitely fictional! However, not all tenants create unhappy endings. So, let’s use 20%. Plus, this is an example using a simple duplex. There’s a reasonable chance that if you buy with hard money, you can refinance out of it. But, once you go above 4 units, financing AND refinancing become very difficult. This is because the lending bank can’t sell the loan to secondary mortgage market buyers and must retain it in their portfolio. There’s only so much of that retention that they want. Thus, if you buy more than 4 units with hard money, you may be stuck with hard money for a while. So, buying and valuing multi-unit properties MUST be based on your financing options and desired rate of return, and not blindly going by what neighboring properties sold for. In that regard, if buying and holding rental properties is part of your master plan: 1. Base your offering price on your available cash to put down, amount you can finance, rate, realistic rental income figures, and AT LEAST the above expense factors. 2. If buying with hard money, try to line up your refinancing options before you even purchase. Find out what rate you can get on that refinance. Will the bank’s LTV be based on your original purchase price or a new appraisal (a�er you’ve enhanced the property)? Can you cash out or do you have to come to closing with more cash down?

By: Brad Emmer


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Are Pocket Listings a Scourge or a Gold Mine? As a real estate investor since 1975 I have seen a lot of ups and downs and changing trends in our industry. One of the most interesting that has literally exploded in the past three years is what is affectionately known as the “Pocket Listing”. This is a property where a Realtor® got a listing agreement from the seller, offered it to his personal buyers list and did not list it on the MLS®. While not a scientific survey, I believe that in 2015 less than 5% of listing agents actually advertised that they had Pocket Listings. In 2016 this had increased to about 12%, by 2017 as much as 42% of savvy agents and brokers touted Pocket Listing to their personal email recipients – usually investors. Here’s how the Pocket Buyers List works – 1. Actual Example – Broker called me to get transactional funding for a double closing he had under contract. He explained he had been using this Pocket Listing technique for a few months and closed 17 wholesale deals last month and was adding extra staff to do 25 closed deals this following month. His average income on each deal was 9% or more of the sale price. 2. Actual Example – Broker called me to for transactional funding for a double closing on a $400,000 property but he had no money so he needed 100% funding. I funded the double closing and his net profit on the three Pocket Listing income sources on the transaction was $109,000 or almost 27% of the purchase price. Had he just received the listing commission and if another agent brought him a buyer he would have made approximately $12,000. His Pocket Listing Buyers List earned him 900% more by integrating his investor savvy with being a Realtor®. In the first two days more than a dozen cash buyers came by to see the property and there was a bidding war for a 100 year-old teardown. The seller accepted one of these investor offers but could she be certain whether the buyer was the agent or not? The question that plagues me is, “If the property had been listed could the seller have gotten a higher offer?” The obvious question is, “Is this legal?” and I defer the answer to a qualified attorney who works for the State Board of Realtors®. What I see is the Broker’s listing agreement contains specific language authorizing the agent to hold the property off the MLS® for a specific time period and offer it to the agent/Broker’s personal buyers list. In some cases the clause may even go on to say that the agent may purchase and resell the property for a substantial profit. This opens the door for what was a very common agent’s slogan in the early 2000’s that went like this, “I’ll buy it if I can’t sell it!” which was used as an inducement to get a seller to sign a listing agreement. A recent one I saw, “If I can’t sell it in 10 days, I’ll buy it!’ and the agent/broker really means it. The agents/brokers ability to market the listing gives motivated sellers a solution to get their biggest headache – getting their property SOLD quickly – but at what cost financially? In summary, are Pocket Listings a scourge or a gold mine? The true answer is in the eyes of the beholder. For brokerage firms, if you are willing to integrate your listing business with Investor strategies you have the potential to show a ravenous audience of investors what should be “deals” in their minds. Realtors® potentially have the best of both worlds – you can list it for a commission or buy it at a wholesale price and make a profit spread plus commissions. If you are a seller, the question should always be, “If I am paying a commission to have my property listed on the MLS® to get the maximum price, is wholesaling my property fair?” Remember, I am only reporting on a significant industry trend and not agreeing or disagreeing with the practice or promoting it.

By: Dave Dinkel


What if the markets not right? You may be right! When I �irst started investing, I was fortunate that my market allowed me to do exactly what it was I wanted to do. But that’s not the case for everyone and markets change. What worked for me in Hawaii two decades ago does not work today.

You’ll hear people in this business say, “If you know what you’re doing, you can make money in any market” and that is 100% true! But, beyond the market or your area, what it comes down to are your goals and plans, your personal situation, and how you plan to attack the market. Did you ever think that your speci�ic goal or strategy wouldn’t work well in your speci�ic market?

I have seen the Hawaii real estate market go full circle. When I started investing, the market conditions were perfect for “buy, hold, and rent,” but not so perfect for “buy, �ix, and sell” because our market had softened up and real estate was on sale. If I’m trying to buy, �ix, and sell, I would be concerned with being able to sell my property for top dollar, which was dif�icult to do at that time.

Then the market changed, and I could no longer �ind affordable properties that allowed me to buy, hold, and rent. Real estate costs were so high it was impossible to create enough rental income to cover the monthly mortgage cost. So, I had to change strategies. What if I didn’t want to change strategies? What if I wanted to continue to buy, hold, and rent properties? You guessed it—I would have had to �ind someplace else to invest in real estate or spend more money, to generate less income and lower returns.

So, I did two things: 1) I changed my strategy in Hawaii to buy, �ix, and sell because now it was easy to sell a property for more than I purchased it after I did some repairs, and 2) with the cash I made in Hawaii from buy, �ix, and sell, I started buying properties across the country that I could buy, hold, and rent. You see, a certain area may not be the right place to buy real estate even though you can make money in any real estate market. It doesn’t matter whether values are going up, down, or sideways—opportunities can always be found. You just need to make sure those opportunities �it into your personal goals and strategies.

I always say there are two components to a successful real estate strategy: 1) the investor (you) and 2) the market. The more �lexible you are with using multiple kinds of strategies, the more success you can have where you live. Just remember that where you live may not be the best place for you to invest. I’ve mentored students from New York to Hawaii and from Florida to Washington State and everywhere in-between, so I can tell you there are many different people, strategies, and markets out there and each one is unique. In the end, you can either work a strategy that makes sense for your market, or you can �ind another market to work the strategy that makes the most sense to you. Either way, you’ll be able to make money in this business.

By: Paul Xavier President - Hawaii REIA


Myths About Land Trusts By: Randy Hughes, Mr. Land Trust I write and teach about the many benefits to using a Land Trust to hold title to real estate investments. There is a lot of misinformation in the marketplace about Land Trusts and a lot of bad advice given regarding these title holding trusts. After using these trusts for over 35 years, I have found that the myths outnumber the facts. In this article I will dispel some of the myths that I hear repeatedly. MYTH: My lender will not let me close my deal using a Land Trust (LT) TRUTH: This depends on if you are using borrowed funds from a lender that must qualify you in the secondary market. If you must meet secondary market guidelines it is true that you must close the deal in your name, but you can put the property into a land trust the day after closing. Once you have 10 secondary market loans (some banks only allow four) you must use a portfolio lender and they will let you close using your land trust. MYTH: Is it true that I must record my Trust Agreement to make it valid? TRUTH: No, and 99% of the time you would not want to record your trust agreement. However, there is that 1% reason that you might want to record. More on that in another article. MYTH: My attorney says Land Trusts are illegal in my state TRUTH: This is probably not true. Almost all states recognize the validity of a LT or a similar type entity (Title Holding Trust, Common Law Trust, etc.). My experience is that a vast majority of lawyers do not understand Land Trusts and therefore do not recommend them. Too bad for their clients...they are missing out on 50+ Reasons to Use a LT (I have written a booklet called, “Reasons to Use a Land Trust” and you can get a free copy by texting the word “Reasons” to 206-203-2005. MYTH: If I use my LLC as the beneficiary of a Land Trust I must register the LLC in the state where the property (held inside the Land Trust) is located. TRUTH: Wrong! Many accountants will tell you this, but they are incorrect. The beneficiary of the Land Trust is not "doing business" in the state where the property is located...the Land Trust is...and the Land Trust is not required to register. Note: California has a law that says if you transfer more than 49% of ANY entity that owns property in CA or is the beneficiary of a Trust that owns property in CA, they have the right to tax you (if they find out about the transfer). MYTH: Land Trusts are expensive to set up and maintain TRUTH: Not true. If you follow my suggestion to put each of your properties into a separate Land Trust and you hire an attorney to do this for you, it WILL get expensive. But you do not need to do this. You can learn how to set up and administer your own Land Trusts (as many as you need/want) for only the continuing cost of recording each deed. MYTH: Land Trusts must have incorporation papers and the State of formation notified TRUTH: Wrong again! Land Trusts are not registered like corporations and LLC's on a state-by-state basis (in fact, they are not registered at all...anywhere!). This is one of the many reasons to start your estate planning with a Land Trust for each property you buy. This is certainly not a complete list of misconceptions about Land Trusts but is enough to digest for now. I will write more on this subject in future articles. Contact Your Club Owner About Having Randy Hughes, Mr. Land Trust Speak At Your Club For More Info.


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The National REIC & The Palm Beach REIA... The National Real Estate Investors Club was formed as a member benefits provider to offer real estate clubs and associations benefits to offer to their members. The benefits are discounts on products and services used every day by real estate investors,realtors,mortgage brokers and anyone in the field. The concept was to start at 10% of the competition and offer more benefits adding benefits by the day. We are here to help the groups not to take all their profit making sure as a supportive partner we enable them to grow. As an added benefit we have started the magazine the National REIC Magazine to promote our 48 clubs in less than 5 months in 18 states and growing rapidly. We want to feature our groups and member clubs and have formed a network across the United States where we can promote products and services to the network allowing access to our benefits as well as promoting each club in the magazine and have enlisted some great contributors such as: Than Merrill ,Albert Lowry, Sam Ally (HIS Capital) and Bryan Ellis (The Bryan Ellis Newsletter and Forbes). If you are a real estate investor and want to start a REIA or REIC we can help from lining up the venue, the speaker and how to market and promote your group to be successful. We have 35 years of combined real estate investing and marketing experience to help you to have a successful club. If you have an existing club and it is just kinda putting along we will make it profitable and respectable. Real estate is a relationship business and people will do business with who they like and want to do business with. The National REIC just shows how an idea or concept can bloom in such a short time including obtaining a trademark. President John Zwirzina III, created the site, contacted the clubs and offered benefits as well as contacting each benefit such as realeflow/nreic, Office Depot, Home Depot and Vertical Rent just to name a few to make it all happen. We welcome new benefits if you are a provider such as hard money, products or services and we are on track to double in size by Winter 2018. We will put you on the map and you will be able to eclipse other groups.. For more information email: Info@NationalREIC.com or visit www.NationalREIC.com From left to right John Zwirzina III, Founder of National REIC & TCREIC also Partner of the PBREIA, Robert Green, Austin Green and Jeff Green founder of Palm Beach REIA and Co-Founder National REIC

Article By;

Jeff Green

(Pic Far Right) Palm Beach REIA

www.PalmBeachREIA.com


How To Get Start In Real Estate With No Money What If I Have No Money? Great! Then what have you got to lose? Many techniques exist for buying real estate with no money down, or better yet, none of your own money. Getting the correct education on the different strategies can open up deals and income for you that you never thought possible. Many creative financing techniques can assist you with “No Money Down” deals. I’m sure you’ve have heard some TV Infomercial tell you how easy it is to buy real estate with no money down. Maybe you’ve even done a deal two, or maybe you’re still trying to figure it out. Either way, every day I and many other people in the industry buy real estate with no money down. When people talk about no money down, they simply mean it didn’t cost them any of their own money. When I first started investing in real estate, in 1999, I was in the Navy on active duty and my wife worked at Sam’s Club. Trust me, we didn’t have much money. We took some classes, found a mentor, got educated and eventually started Hawaii Real Estate Investors to teach others what we learned. We were living paycheck-to-paycheck with debt up to our eyeballs; okay, actually it was over our heads. We managed to find real estate deals and use other people’s money to help us put them together. I’ve done plenty of deals over the years with none of my own money and still do it today. My business runs off of what we call “Private Money.” We actively go out and find people with money who want to make a better return than the bank will give them. Trust me, there are plenty of these people. We have people who lend money to us on a regular basis from as little as $30,000 to as much as $100,000, unsecured. What we don’t do is go after the big fish. Those people know what to do with their money and don’t need me to show them. But the average person with small amounts of money in the bank, or in CDs, a 401k, or a self-directed IRA who is earning next to nothing in interest is happy to listen to me when I can show him or her how to make safely 10—12% a year on money invested with my business.

Visit National REIC For Hard Money Loan Discounts Do NOT let money be the driving force of what you can or cannot do. Allowing money to limit you will keep you from ever getting ahead. I’m here to tell you that if you’re able to find good real estate deals, then attracting money has never been easier. Banks with low interest money and investors with cash are pumping tons of money into the real estate market and will continue to do so. I challenge you to get out there and find those deals. The money will follow! Be Blessed with Success!

Paul Xavier Owner of HIREI Hawaii Real Estate Investors

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Effec�ve Communica�ons Campaigns for Probate Businesses By Leon McKenzie, Managing Partner, US Probate leads Like many businesses, probate entrepreneurs can benefit from communications campaigns that can drive business, clients and opportunities toward them. Unfortunately, many new probate business owners either disregard the importance of communications campaigns or don’t put in the effort needed to portray a professional image. There are key considerations when developing an effective communication campaign for probates due to the fact that probate entrepreneurs are working with a client base that is generally concerned about not only completing their deal in a timely manner, but making sure that their best interests are kept in mind. With the idea that scam artists are lurking nearby, Executors are quite wary about whom to choose to assist with their needs – whether they have a residence, antiques, vacation home or business to sell. This is all the more reason to make sure that your communications campaign is dealt with in a professional manner, giving credibility to your business and to your reputation. You Will need a Strategy Putting together a communications campaign requires a strategy. No mailing, blog or social media effort will assist your business over the long term if it isn’t part of a consistent, well thought out plan to get information out to the community or to your target area. Here are just a few aspects of a communications campaign that will position your probate business for growth and give you the ability to build wealth. Know your Audience and your Poten�al Clients Whether you are considering putting together a short-term or long-term campaign, it is extremely important to think about who will be receiving the information. Understanding their particular concerns and what information they want to know is what will turn a simple mailing into a very happy client. Think about their “pain factors.” Do they need a quick sale? Do they need someone they can trust? Do they need a way to sell antiques, jewelry or collector cars? Are they worried about paying for an expensive funeral or medical costs? Each of these are areas that you can quickly develop into talking points for your print or Internet based marketing efforts. Present a Clean, Clear Message Before anything is printed or posted to the Internet, it is critical to take the time to think about what message you want to convey to your audience. Once you understand who your audience is, then it is time to create your messaging. Your messaging is much more than talking about the features of your business. Sure, you may have been able to sell ten homes in the last year and sold several thousands of dollars in furniture or antiques, but your reader is not interested in what you have done for someone else as much as they are interested in what you can do for them. This distinction is called “features versus benefits.” It is much more powerful if you can describe the benefits that clients will receive from your service than simply telling them about yourself. Remember, people always want to know what is in it for them. Using language that describes the benefit of using your services is what will make your communications stand out from the crowd. Length ma�ers – Keep it Concise In today’s fast paced society, lengthy messages simply don’t work. Not only will your potential clients not read them, but they will miss the important information that can help them to take advantage of your services. Keeping your written text between one half page and a full page is a good amount of words – plenty of space for you to convey your unique selling proposition without discouraging people from reading your information. In general, shorter communications, as pithy as possible, will more quickly generate leads than those that are longer and more extensive. Save the details of your probate business for a one-on-one conversation. Once a communication is written, let it sit for a while and ask yourself (1) how it fits into your overall communications strategy and; (2) if there is anything you can omit and still maintain the strength of the message. This process will help you to gain a high-level perspective as well as reduce your information to the core selling proposition, giving you strength in the market.

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3 Rules to Building a Killer Rental Portfolio By: Kent Clothier - REWW Let’s face it, buying real estate, specifically cash flowing real estate, is an amazing opportunity if it's done correctly. So what does that mean and how to do you learn from people who have made the mistakes that are holding you back? I won’t dwell on what not to do, but instead I’ll focus on the positive action you can take. Look Outside Your Backyard I live in La Jolla, California, one of the most expensive zip codes in the country. The median home in San Diego County is about $550,000. That's the median. Think about how ridiculous that sounds. Buying a rental property here or anywhere inside of 50 miles of here is kind of pointless. There are much better places to invest your money. Consider Dallas, Houston, Memphis, Little Rock, and Oklahoma City. These are great cash flow markets for single-family homes. You can go into Memphis, Tennessee and buy a three bedroom, two bath, 2,000 square-foot house built in the last 15 years that's in an amazing neighborhood with good schools. It’s likely an amazing property that you’d be proud to own for $150K to $120K and you get a solid tenant that pays $1500 a month in rent. Perfect, right? So the first thing you need to build a killer rental portfolio is to understand that the best investment properties are probably not sitting in your backyard. Because it won’t be near you and you won’t be managing it yourself, you need to treat it like any other investment. Think of it this way, if you bought a stock, you wouldn’t get on a plane, fly out and sit down at the CEO's desk and say, "I'm investing in your company. Now let's talk about it." It’s the same passive way you invest in real estate. You're not going to touch, feel and look at every property. Instead, ask the right questions. • • • • • • • •

Do the numbers make sense? Is it cash flowing? If I put $25,000 into it, what is the cash return? What is the average annual yield? What am I getting out of this property? How long will it take me to pay off the property completely? When is it free and clear? Are there good tenants in place? Are they long-term tenants? Is it in a good neighborhood? Are the schools good? Is it in a city where economically, things are growing? Or is it in a dying? Has everything that needs to make it a sound investment for the next five years been done to the property right now?

That’s the way you need to look at it. Real estate investing is not like buying your primary residence. There is no emotional connection to it. You aren’t imagining your family in it. So again, get comfortable with the fact that your investment property will likely be out of state. Also, get comfortable that you understand how to evaluate those properties in a meaningful way where it brings you the return you want. One of the best ways to invest in something you can’t fell or touch leads me to the second rule of building a killer rental portfolio.

John Zwirzina, Kent Clothier, Jeff Green


Kent’s Article Continued... Choose The Right Partner In order to take advantage of opportunities in really good markets that are growing, you need to connect with quality partners who work in those markets. You need someone in place who is your eyes and ears, and is going to be as passionate as you are about running this investment. They must be mindful of your dollars and think about the investment like you would. They need to have a vested interest in your success, which means that they're making sure that when rehabs are done, they're not deferring maintenance. They aren’t just putting lipstick on the pig, right? You don’t want to buy a house that you think you’re saving $10,000 on the price, when it needs $10,000, or even more in repairs. The purpose of those repairs and upgrades are so you can attract quality tenants who will stay there for the next two, three or five years. You don’t want to get the phone call that the $10,000 you saved years ago is now coming back to bite you because you need roofing, electrical or plumbing work done. You never really saved that $10K, you just deferred it to a time when there is a “postponed emergency” and you risk losing your long-term tenants. We’ve all learned by making these mistakes over the years, and we know we don’t get another chance to impress that tenant, client, or investor. So you need a partner who understands how to do the right thing all the time, not just some of the time. Do they know how to ensure your dollars later? Do they treat the business like a business? Are they putting the right tenants in place? Do they know how to quickly handle non-paying tenants? Can they effectively handle maintenance calls? You certainly don’t want to get “problem” calls from Texas when you live in California. What can you do from there? That’s why you need a situation that is completely passive, or else it makes no sense to invest. The way to do that is to get comfortable investing out of state. Get comfortable looking at a property as a true investment, with a partner that makes it easy for you. Pay Down Principles The third rule is all about creating wealth over time by taking all of the extra cash flow and paying down the principle of one specific property at a time. It’s a great tool for creating wealth, and people rarely understand the concept of leverage and compound interest. So, here are the nuts and bolts of it. You start buying properties at the rate of five per year, for the next ten years. At the end of those ten years, you have 50 properties. You spend the next 20 years paying them down. So from the time you’re 25, you spend ten years acquiring property and 20 paying them down, that at 55 years old, you have 50 properties, all worth $150 thousand on average. That's $7.5 million in real estate that is producing $50,000 a month in gross rents. Do the math: that’s $600 thousand a year in completely passive income. It's shocking when you think about it. Over the course of that entire time, buying those 50 properties at $10,000 down, you will have invested a total of outlaid cash of $500,000. Now you have a $7.5 million asset that's only growing in value, and is spitting out $600 thousand in cash every year to you. Now that's freedom. But this is what our company, REWW does every day, and to say that I'm passionate about it, to say that we know this works, is probably the single biggest understatement you'll ever hear from me. This absolutely works, and it works all the time, and it's something that you should be doing at some level. It doesn't have to be 50 properties. Let's just say it's 10. Would $10,000 a month, in passive cash flow on free and clear properties interest you? If it does, then you owe it to yourself to certainly look at it. This is an extraordinary means of building wealth. Don’t wait any longer!

JOIN A REAL ESTATE INVESTMENT CLUB TO CONTINUE LEARNING NEW IDEAS & NETWORK WITH LIKE MINDED INDIVIDUALS

By; Kent Clothier - REWW


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www.NationalREIC.com 48 Clubs in 18 States & Growing •Chester County REIA •www.ChesterCountyREIA.com •2nd Monday Monthly •6:30pm – 9:00pm •Phoenix Area REIC •Date To Be Determined •Coming Soon •Los Angeles County REIC •Date To Be Determined •Coming Soon •Denver Area REIC •Date To Be Determined •Coming Soon •Boulder Area REIC •Date To Be Determined •Coming Soon •Palm Beach REIA •www.PalmBeachREIA.com •4th Wednesday Monthly •6:00pm – 9:00pm •Boca Real Estate Investor Club •www.BocaRealEstateClub.com •2nd Thursday Monthly •6:30pm – 9:00pm •Boynton Beach REIA •www.BBREIA.com •2nd Tuesday Monthly •12:00pm – 1:00pm •Miami Dade REIA •www.DREIA.com •3rd Wednesday Monthly •6:00pm – 9:00pm •Broward Investor Forum •www.DREIA.com •Check Website For Schedule •5:30pm – 9:00pm •Tampa REIA •www.TampaREIA.com •2nd Thursday Each Month •6:00pm – 9:00pm •TB REIA •www.TBREIA.com •3rd Thursday Each Month •7:00pm – 9:00pm •Treasure Coast REIC •www.TCREIC.com •4th Tuesday Each Month •6:00pm – 9:00pm

•Atlanta REIA •www.AtlantaREIA.com •1st Monday Each Month •5:00pm – 9:00pm •Savannah REIA •www.SavannahREIA.com •2st Monday Each Month •6:30pm – 9:00pm •Hawaii Real Estate Investors •www.HiREI.org •1st Thursday Monthly •6:30pm – 9:00pM •Lake County Property Investors •www.LCPIA.org •2nd Tuesday Monthly •6:00pm – 8:00pm •Baltimore REIA •www.BaltimoreREIA.com •3rd Thursday Monthly •6:00pm - 9:00pm •7 Meetings Monthly To Choose •Ann Arbor REIC •www.A2REIC.com •1st Tuesday of Each Month •(4 Meetings Per Month) •5:30pm - 8:00pm •Charlotte REIA •www.CharlotteREIA.com •1st Thursday Each Month •6:00pm – 9:00pm •Cleveland Investment Club • 2nd Thursday Monthly • 6:30pm - 9:30pm • www.ReoCle.com •Akron/Canton Investment Club • 2nd Thursday Monthly • 6:30pm - 9:30pm • www.ReoCle.com •Mahoning Valley REIA • 2nd Monday Monthly • 5:30pm - 8:30pm • www.MahoningValleyREIA.com •Columbus Investment Club • 2nd Thursday Monthly • 6:30pm - 9:30pm • www.ReoCle.com

•Midlands REIA •www.MidlandsREIA.com •2nd Tuesday Monthly •6:30pm - 9:00pm •Pittsburgh REIA •www.PittsburghREIA.com •3rd Tuesday Monthly •7:00pm – 9:00pm •Chattanooga REIA •www.ChattanoogaREIA.com •1st Thursday Each Month •6:30pm – 9:00pm •Texas Real Estate Investors Circle •www.TXREIC.com •Last Thursday Each Month •6:00pm – 9:00pm •1 R.E. Club Fort Worth •www.1REClub.com •2nd Thursday Each Month •6:15pm – 9:00pm •The Texas Wealth Network •www.TexasWealthNetwork.com •7 Clubs In This Network Total •San Antonio RENC •www.SanAntonioRENC.com •2nd Tuesday Each Month •6:00pm – 8:00pm •REIA Austin •www.REIAAustin.com •1st Tuesday Each Month •6:00pm – 8:00pm •Austin RENC •www.AustinRENC.com •3rd Thursday Each Month •6:00pm – 8:00pm •Houston RENC •www.HoustonRENC.com •1st Thursday Each Month •6:00pm – 8:00pm •Houston REIA •www.HoustonREIA.com •3rd Tuesday Each Month •6:00pm – 8:00pm

•Youngstown Investment Club • 2nd Thursday Monthly • 6:30pm - 9:30pm • www.ReoCle.com

•Wisco REIA •www.WiscoREIA.com •2nd Tuesday Monthly (Eau Claire) •2nd Wednesday Monthly (Appleton) •2nd Thursday Monthly (Kenosha) •7:00pm – 9:00pm

•Oregon REIA •www.ORREIA.net •2nd Tuesday Monthly •6:00pm – 8:30pm

•Green Bay REIA •www.GreenBayREIA.com •1st and 3rd Wednesday Monthly •6:00pm - 8:30pm

•Jacksonville REIA •www.JAXREIA.com •1st Thursday Each Month •6:00pm – 9:00pm

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What’s a Real Estate Investment Club? It’s an organization that helps new and experienced Investors become educated, motivated and connected. In every meeting there is a time for education, usually with a classroom type of infrastructure, a time for members to share their goals and become more motivated, and a time for member networking. In addition to investors, members consist of a variety of Real Estate, Mortgage and Banking Professionals. We want to offer Real Estate Investment Club's an easy way to grow their membership by offering them benefits and discounts all around the globe. We want to help you gain members by helping potential members find your club and let them know they are joining a member of the National REIC.

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How To Find Home Sellers Ready And Willing To Sell? Where are the home sellers that are really motivated and ready to sell? What are the best ways to find and create communication with potential home sellers? Which ways really work in today’s Real Estate market? There are many Obstacles & Difficulties when trying to get a listing from potential home sellers. Hunting down and finding a potential home seller is not as easy as you may read about online or thru real estate training courses. You will find many course, books, YouTube videos, and motivational speakers and so on showing you real results on how quick and stress-free they find sellers. Of course you will have to pay for these supposed top secrets that no one else knows. Amongst the secrets will be how to do mail outs, what is the newest software’s accessible to agents, how to acquire buyers list, you will hear all of these. Some of these methods if not all might work. It depends on where you live and just how the market is in your area. These systems usually require more work and money then how it’s explained or presented. Agents that expect all this to be free will come to a sudden reality. In Real Estate there is no way around it, from morning till evening, you are in constant prospecting mode. You will get lots of leads with these systems but must learn how to convert them into transactions. Here is a way we have focused on before. Within my farming areas, I have done a mailing campaign for three to five months. You can obtain all the mailing address thru your MLS systems tax records and select a specific location or community. If you use mailing software, you can even personalize with the owner’s name. It’s a great idea to send the postcard or whichever mailing based on the season and time of the year. You can even change it up by mailing postcards, written letters, newly listed, area comparable and so on. This gives you a constant presence to the home owners. When they are ready to sell, you have a great chance of coming to mind and receiving a call.

Is there a better way to connect with these potential sellers? Let try to find more home sellers that are willingly ready to act and list. Here are some additional ways. Investors, if you build good relationships with them, when they purchase and are ready to flip, you will be on their list. REO foreclosure, these sellers are ready to act now, building a relationship with an Asset management company and doing BPO’s is another great way. Are you really Social, you can definitely try paid ads on Facebook to target sellers in a specific areas, Google Adword ( This gets a bit expensive), Bing is also a good alternative costing less. Your circle of influence, is probably the best way as seller leads would be referrals ( Warm Market ). Have you tried other agents, there are many agents who are out of the area, not in town or for various reasons are unable to take the listing. An example of this is an agent that refers me residential listings since all he handles is larger commercial Real Estate. Whichever method you go with, it’s all about the amount of leads you get and can convert. An experienced agent can convert a lead quickly and has a high conversion ratio while a new agent might burn thru lots of leads due to their inexperience.


While the method above works, there are a few draw backs. It’s the upfront investment and conversion ratio. This is where earlier I mentioned that you need to learn how to convert leads in transactions. Luckily for you and I , this is not the only method to find potential sellers. During your prospecting, you will certainly come across leads that are considered Tire Kickers. They are just seeking information on the value of their home and are not truly ready and willing to sell. Learning to identify these sellers will avoid wasting your time. Not even the best Real Estate agent can convert this type of lead. Time is money, so time not wasted is essentially money. All in all, if you put in the work, test out different methods, you will find sellers which are ready. Many sellers have various reasons why they need to sell. Job relocation, down size ( Kids are gone ), retiring investor liquidating their assets and so on. Whatever the reason, you need to be in contact with them during these times to have a good chance of getting the property. Final note, there is not one method which works best then the other, every method works differently for every person. Try and test various ways and stick with the one which gave you the best results. Personally I use Realeflow to find my leads and to handle my mailings.

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REALITY CHECK

By: Sam Ally

For many years post-crash I professed an outright dis-like for the Guru circuit, though recently, however, I’ve had a change of heart about that. These Gurus are marketers and their job is to separate you from your cash and they are pretty damn good at it. Capitalism at its best. Throwing teasers at you to get you interested and into the next level of coaching while they get deeper into your pocket. This often leaves many without much cash left to invest. The reality of it all is, those guys n gals up on the stage didn't make it overnight & neither will you. As one of my mentors once said, "look at me, I’m a 30 year overnight success." If you do not possess the skill sets necessary or knowledge of what it take to operate a business & reach your goals you simply will not move forward. Real estate investing isn’t brain surgery, but it ‘aint EASY, you will need to HUSTLE every day especially on the days you don’t feel like it. If you had a terminal illness, would you do everything within your power to uncover every stone to find the cure, wouldn't you? You should be willing to take the same approach to improve your own personal economy. If you’re not don’t waste your time or money, keep the day job building someone else’s dream. This is a business and it takes a great deal of knowledge, massive action, and for lack of better words, blood sweat, tears & often years to make it work. Real estate is a contact sport, meaning it is a relationship business, a solution business, a systems business, and most importantly, a numbers business. You’re not buying that foreclosure at 250 N. Main Street, you’re buying the numbers, and if they don’t work you walk away. “How To” Information is all around you especially at your local REIC where you can find those doing what it is you hope to do. Listen, learn, ask questions and most of all act on what you have learned. That said there is no need to pay these guys n gals thousands of dollars for information that is at your fingertips 24-7. Besides some recent stats show 90% of those that paid to take part in a Guru program dropped off after 90 days, 8% don’t survive a year. Based on that ratio it appears the bottom line is: Will you learn it, will you apply it, will you do whatever it takes, will you work for free to get it? Even if you will work for free by interning with a successful entrepreneur in your area, you will still require skin in the game aka capital to get involved no matter what level, so do not leave your day job. Don’t hate your job either, use it to fuel your business and build up your cash reserves so you can afford the expenses you will incur. No one can start or sustain a business without liquidity i.e. cold hard cash, and no one can do it alone. Building your team is imperative and it is a must that you surround yourself with those that know what you do not, and can do what you cannot. You must understand market cycles and the right strategies to operate within those cycles. You can make money in any market cycle, remember this, the market doesn’t tell you when to buy it tells you HOW. You must learn the art of leverage and the multiple types of leverage to increase your chances of success. Leverage comes in many forms, other people’s money, time, knowledge, resources, tools. I believe everyone should be involved in real estate, the question is what seat on the bus do you belong in? Active, Passive, do you understand the difference? Are you someone who acts, does what they say they will do, willing to commit fully? If you don’t have the cash to get started, you must have value you can offer to others in exchange for their knowledge or resources. Focus is imperative, as is the ability to handle plans B thru Z if necessary. This isn't child’s play though for some veterans of this business it may seem that way due to repetition. They have their systems, tools and resources and operate in machine like fashion which is what everyone aspires to do yet so few accomplish. Remember, only 2 percent of those engaging in educational programs make it past the first year. We put boundaries on ourselves by not conducting our diligence, doing our research, working at it and on ourselves daily & truly understanding our profession as investors. As General Colin Powell said, “The world is being re-shaped, there are no boundaries anymore, so why would you put them on yourself.” I compelled to share an excerpt from a recent article chronicling her first flip by newbie Mom "flipper" Beth Franken: "No doubt I wonder what the heck did I get myself into sometimes. So many things I cannot control both global and personal, inflation, bubbles in the market, the ups and downs of my day job, all those unpredictable elements that threaten the promising outcome I was so excited about at the beginning of the project.


Rental Property Tax Deductions You Don’t Want To Miss Out On By Than Merrill Rental property tax deductions represent some of the greatest benefits awarded to today’s passive income investors. However, most beneficial deductions aren’t going to make themselves; you have to know which deductions you can take advantage of and apply them to your business come tax season. If you are interested in the rental property tax deductions you are made privy to, pay special considerations to the following and — above all else — be sure to consult a tax professional before calculating any deductions of your own.

RENTAL PROPERTY TAX DEDUCTIONS CHECKLIST For those of you looking to ease your tax obligations this April, it is a good idea to keep a rental property tax deductions checklist handy. That said, here’s a list of the most important tax deductions you don’t want to miss out on: • Loan Interest: The single largest deduction for most rental property owners, the loan interest deduction allows qualifying owners to write off the interest they pay each year. It’s worth noting, however, that most loans are front loaded with interest payments. As owners pay down their mortgage obligation, there’s a good chance their write-offs will decrease in the later stages of the loan. • Rental Property Depreciation: Qualifying rental property owners are allowed to write off a portion of the original purchase price each year over what has been deemed by the I.R.S. to be the “useful life” of a property (typically 27.5 years). • Taxes: Business-related wage taxes, permit fees and personal property taxes are considered allowable deductions when tax season comes around. • Repairs: According to the I.R.S., “an expense for repairing or maintaining your rental property may be deducted if you aren’t required to capitalize the expense.” • Maintenance: Not to be confused with repairs, maintenance doesn’t require that you fix anything, but rather maintain it. Cutting the lawn, for example, represents maintenance. • Monthly Utilities: It is entirely possible to deduct the monthly utilities spent to keep the property operating. • Local Transportation Expenses: You may be able to deduct your ordinary and necessary local transportation expenses if you incur them to collect rental income or to manage, conserve, or maintain your rental property. • Management Fees: Fees associated with hiring a third party management company can be written off. • Advertising: Savvy rental property owners can write off their advertising expenses incurred to make sure the property remains in operation. • Commissions: Whether they are tenant referral commissions or for other managers, commissions can be written off. • Legal & Other Professional Fees: Fees incurred from legal or professional assistance can be written off in the same tax year. • Points: Because points are prepaid interest, you generally can’t deduct the full amount in the year paid, but must deduct the interest over the term of the loan. Before you add any of these items to your own rental property tax deduction checklist, confirm that they are still viable in the eyes of the I.R.S. If for nothing else, the powers that be are constantly changing what they deem to be acceptable deductions. Perhaps even more importantly, be sure to hire a trained tax professional to assist you in your own rental property deductions. The above list is subject to change in a moment’s notice. That said, do not attempt to make any rental property deductions on your own; hire a professional to make sure things are done in accordance with the law. [ Thinking of buying a rental property? Get a FREE downloadable copy of our “Essential Contract Pack For Cashflow Real Estate Investors” ]


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October 2017 Issue FREE FOR NATIONAL REIC CLUB MEMBERS

READERSHIP NUMBERS

National Real Estate Investors Club Magazine Published By: National REIC LLC & Z Publication LLC

Kent Clothier Article Than Merrill Article

10k = Paper Copy Readers (Distributed To Each Of Our Clubs) (+ Other RE Investment Clubs Too) 15k - 20k = Online Redership (Kindle, Ipad, Website Downloads)

National REIC Visits Palm Beach REIA John Zwirzina Kent Clothier Jeff Green

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Total = 25k - 30k Readers (1st Year Alone ‘17 - ’18 Issues) Our Issues Will Also Be Delivered To Our Clubs Email Lists Which Could Add To Our Readership Levels

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Potential Reach - 50,000 Readers Our Expected Reach By Mid 2018

National REIC Magazine

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The National REIC Delivers These copies to all of their Real Estate Investment Clubs, which will soon be in every state in the US. They were just started in May 2017.

Phone: (484) 574 - 5321 Email: Info@NationalREIC.com Web: www.NationalREIC.com Grow your membership by listing your club on our site. We spend money driving traffic to our site for potential members for your club. We also put your Real Estate Investment Club on other sites and blogs. Make sure you are a part of the National REIC.

By Oct. 2017 They had 43 REI Clubs in 17 States, and growing weekly.

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Demographics Of Readers & Our Investment Clubs Males = 70% Females = 30% Own More Than One Property = 75% Currently Buying Real Estate = 95% New Investors = 25% Active Investors = 75% - +/- 3% - 5% These Numbers Were Taken 09/2017 By Our Real Estate Investment Club Survey

Income Levels -

Over $250,000 = 25% $100,000 - $250,000 = 45% $50,000 - $100,000 = 20% Under $50,000 = 10% +/- 3% - 5%


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National REIC Members pass on our Partnerships, Discounts, and Savings Programs exclusive to your Members as an added benefit. We have a partner for everyone, with 50+ different partners for discounts.

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