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Ca$hFlow
                                                                                                                                    EXPRESS




No. 1 / Vol. 1 2012                                             Passive Income for Today & Tomorrow                                                                        FREE



Learn How to Create Stock                                                            Investors Manifest a
Market Wealth Today                                                                  “Cashflow” Mindset
                                                                                     By Doug Carver                                      estate investing, trading stocks, building
                                                                                     Organizer Pasadena and Burbank                      a strong MLM business, etc. You will not




                                                                                     I
                                                                                     Cashflow Meetup Groups                              succeed. It’s like trying to grow corn in
                                                                                                                                         a field of sand. The seeds will not germi-
                                                                                              can remember my first time play-           nate and you’ll end up with next to noth-
                                                                                              ing Robert Kiyosaki’s Cashflow             ing to harvest in the fall.
                                                                                              board game about eight years                  How, you ask, does this relate to the
                                                                                              ago and how it                                                     Cashflow game?
                                                                                              started a chain                                                    Well, after playing
                                                                                     of events that continues                                                    the game a bunch
                                                                                     to this day. What stuck                                                     of times, I learned
                                                                                     with me most was not the                                                    the “how to” of
                                                                                     “how to” of playing the                                                     getting out of the
                                                                                     game but the people that                                                    rat race, but I still
                                                                                     I met at the event. These                                                   was not able to
                                                                                     were not like the normal                                                    take what I learned
                                                                                     people in my life that                                                      from the game and
                    By Tyrone Jackson      companies and products with which         would tell me I was crazy Dougthe Cashflow gameChris Hanson dis-
                                                                                                                    play
                                                                                                                          Carver (left) and
                                                                                                                                             to group members.
                                                                                                                                                                 apply it to my real-
                                           you are familiar.                         for trying to start my own                                                  life financial situ-
                 TheWealthyInvestor.net



Yes!
                                               If you’ve ever opened a can of        real estate business or                                                     ation. However, I
                             You can be    Coca Cola on a hot summer day and         that financial freedom was impossible               realized that the time I was spending with
                             rich from     felt refreshed and invigorated, why       without a steady well-paying job. The               my new Cashflow friends was changing
                             owning real   not own the stock? It’s a product you     people I met were excited about learn-              the way I thought about money and my
estate and trading stocks.                 know with a story you understand.         ing and expanding their knowledge on                financial future. I no longer viewed the
    We’ve all heard the story of the       When I say “a story you understand,”      how to achieve financial freedom. They              stock market as a giant rigged system for
little old lady who lived modestly         I mean to say that you understand         were active investors in real estate and            losing money. I began to see the tremen-
and worked as a school teach-                                  how the Coca Cola     the stock market. They were small busi-             dous opportunities in the sinking real es-
er for 40 years. She never                                     Corporation makes     ness owners with a passion and vision               tate market even as many people I knew
earned more than $35,000 per                                   money, or to ex-      for creating more financial success in              were losing money on deals that had gone
year, owned a modest home,                                     press it in Wall      their lives. Overall, they had a mindset            bad. Overall, I saw for the first time op-
and shared her life with two                                   Street terms, you     for prosperity that I like to call a “Cash-         portunities all around me to create wealth
cats. Once she died, her rela-                                 understand      how   flow” mindset.                                      even as the newspapers talked constantly
tives discovered a $150,000                                    the company earns        A lot of people complain that Kiyosaki           of the “Great Recession.”
life insurance policy and $1.5                                 revenue. The more     does not provide the specific details on               Today as a result of my ongoing in-
million in stocks that she left                                bottles and cans of   how people should implement his strat-              volvement playing and organizing local
to the elementary school’s                                     Coke that Coca        egies to create financial freedom in his            Cashflow events in Southern California,
scholarship fund.                                              Cola sells around     books and programs. Truth is he never               I have a thriving real estate investing
    The national media loves                                   the world each day,   spells out a step-by-step “how to” for              business. It was after speaking with one
to air these stories. It seems                                 the larger the com-   building long-term financial freedom.               of my Cashflow friends who was a real
there are several old ladies                                   pany’s profit. Over   What he does teach is far more impor-               estate investor that I was encouraged to
who fit this seemly unique                 the past ten years Coke stock (symbol     tant, and that is how to create a “Cash-            start wholesaling distressed properties. It
profile year after year. How could         KO) has risen from around $40 per         flow” mindset. Kiyosaki describes it in             turned out to be a great decision. More
that be?                                   share to a high of $71 — $1000 in-        his book Cashflow Quadrant moving                   recently, I’ve begun to learn how to suc-
    Investing in stocks is not the         vested in Coca Cola stock ten years       your mindset from the E (employee) and              cessfully trade in the stock market using
world’s most challenging task. In          ago would be worth $4,100 today;          S (self-employed) side of his Cashflow              options. As a self-proclaimed real estate
fact, at its core, it’s very simple. The   $10,000 invested in Coca Cola stock       quadrant to the B (business owner) and              “zealot”, I never would have dreamed of
truth is that the stock market creates     would be worth $41,000 today.             I (investor) side of the quadrant. In lay-          investing in the equity markets. Howev-
millionaires every year. Investing in         If you spend more than $100 per        man’s terms, it’s the mental shift from             er, after playing Cashflow 202 with my
stocks, with wealth in mind, is easier     year eating fast food, why not own        someone who seeks financial security at             Cashflow friend ,who is an active trader,
than you think.                            the stock? Over the past ten years        all costs to someone who can confidently            and learning about his trading system, I
                                           McDonalds stock (symbol MCD) has          and knowledgeably take measured risks.              was able to see the opportunity before
     Invest In What You Know               risen from a low of $15 per share to a    This is a simplistic definition but a very          me. I now fully expect that investing in
                                           high of $95 per share.                    important one to understand. Without the            the markets will be a huge part of my fu-
  Wanna be a good stock market in-                                                   correct mindset, it really doesn’t matter           ture financial success in addition to my
vestor? Keep it simple and start with                          Continued on pg. 12   how much you learn the “how to” of real
                                                                                                                                                                   Continued on pg. 2



              Personal Finance News from the Publishers of Realty411 Magazine - www.Realty411Guide.com
Will Big Money Run
                                                                                                                                                                                                                                                     Away with Cashflow
 Ready to Make an Extra $5,000 to                                                                                                                                                                                                                    Real Estate Investments?
      $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
                                                                                                                                                                                                                                                    A         great financial opportunity does
                                                                                                                                                                                                                                                              not stay under the radar for long.
                                                                                                                                                                                                                                                              The side road with less traf-
                                                                                                                                                                                                                                                    fic gets crowded pretty soon as drivers
                                                                                                                                                                                                                                                    hear about it and jump
                                                                                                                                                                                                                                                                                                        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

 in the stock market. His Wealthy Artist/Wealthy Investor program exposes both the experienced                                                                                                                                                      off the freeway. High
 trader & novice to the powerful concept of monthly residual income.
                                                                                                                                                                                                                                                    yield cash flow real es-
                                                                                                                                                                                                                                                    tate investments may
                                                                                                                  Join Tyrone & the CashFlow Express Team
                                                                                                                                                                                                                                                    be headed for a similar
                                                                                                                on February 5 for their Success 2012 Seminar
                                                                                                                                                                                                                                                    fate.
                                                                                    This is a FREE WORKSHOP, but guests                                                                                                                                Retail investors have
                                                                                      must RSVP by calling 310.499.9545                                                                                                                             had this opportunity
                                                                                                                                                                                                                                                    staring them in the face
                                                                                                                                                                                                                                                    for a while, and many
                                                                                                                                                                                                                                                    have taken advan-
                                                                                                                                                                                                                                                    tage of it. Retirees or
 Join BILL GATTEN at his next event and learn the                                                                                                                                                                                                   people about to retire,
KEY TO CAPITALIZING ON FREE REAL ESTATE                                                                                                                                                                                                             individuals suffering
                                                                                                                                                                                                                                                    from ‘market gyration
  (Acquisition and Ownership) in This Crazy Economy!                                                                                                                                                                                                trauma’ and high-net-worth individuals              real estate investments are quickly be-
                                                                                                                                                                                                                                                    seeking portfolio diversification have all          coming the ‘unapartment’ portfolios of
We will teach you how our “TRIAD APPROACH” can                                                                                                                                                                                                      been adding cashflow residential real es-           these funds.
provide the professional real estate community with a                                                                                                                                                                                               tate to their portfolio.
SAFE VEHICLE FOR ACQUIRING, SELLING AND                                                                                                                                                                                                                                                                           So what should the retail
DEALING WITH ALL TYPES OF REAL ESTATE.                                                                                                                                                                                                                           So what changed?                                       investor do?
                                                                                                                                                                                                                                                      Like all markets this one is moving be-             The retail investor should take action.
   Learn more at www.LandTrust.net                                                                                                                                                                                                                  yond the early adopter stage. And the fac-         This is still a fragmented market that al-
                                               or call 1.800.409.3444                                                                                                                                                                               tors that have made this a great investment        lows an investor to own one, two or
                                                                                                                                                                                                                                                    opportunity are compounding. There are             three properties. They cannot do this in
                                                                                                                                                                                                                                                    more distressed assets hitting the market          multifamily commercial real estate other
 - Call Or Visit Our Website for Upcoming Educational Training -                                                                                                                                                                                    with a larger shadow inventory waiting in          than by investment in a fund or a REIT.
                                                                                                                                                                                                                                                    the wings. Morgan Stanley just published           But it’s important that investors act pru-
                                                                                                                                                                                                                                                                                                                           d e n t l y. T h i s m e a n s




                                               contents
                                                                                                                                                                                                                                                                                                                           not investing in their
                                                                                                                                                                                                                                                                                                                           own backyard favoring
                                                                                                                                                                                                                                                                                                                           proximity over return,
                                                                                                                                                                                                                                                                                                                           not investing with fly-
                                                                                                                                                                                                                                                                                                                           by-night property sell-
                                                                                                                                                                                                                                                                                                                           ers who peddle ‘high
   1 Create Stock Market Wealth                                                                                                                                                              6 Cash Versus Cashflow                                                                                                        return’ properties and
                                                                                                                                                                                                                                                                                                                           then disappear leaving
   1 Have a Cashflow Mindset                                                                                                                                                                 7 Calculate Your ROI                                                                                                          the investor holding
   2 Will Big Money Run Away?                                                                                                                                                                8 The Nested Action Cycle                                                                                                     the bag. And not doing
                                                                                                                                                                                                                                                                                                                           thorough due diligence
   3 Six Tips for Faster Wealth                                                                                                                                                              9   Investor Spotlight                                                                                                        on the area, the prop-
                                                                                                                                                                                                                                                                                                                           erty and the provider.
   4 Focus Versus Diversification                                                                                                                                                            10 Resource Directory                                  The HomeUnion Services team are ready to assist new investors.
                                                                                                                                                                                                                                                                                                                              Finally, they should
   5 Jump Start Success                                                                                                                                                                      11 Inside Our Expos                                    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 invest-
                                                                                                                                                                                                                                                    ownership declining to 59%. A recent ment. In other words, the retail investor
  Our Goal is to Educate, Motivate & Inspire New Investors                                                                                                                                                                                          Mortgage Bankers Association study says has to do the very things that the large


  Ca$hFlow Realty411
                                                                                                                                                                                                                                                    that home prices may have hit bottom.              funds do before they invest.
                                                                                                                                        EXPRESS
                                                                                                                                                                                                                                                      This means that investors have a grow-
                                                                                                                                                                                                                                                    ing number of properties that they can buy Discover a whole new way to unleash fully-
    No. 1 / Vol. 1 2012                                             Passive Income for Today & Tomorrow                                                                        FREE
                                                                                                                                                                                                                                                    cheaply and then select from a large pool managed, high-income cashflow real estate
   Learn How to Create Stock                                                             Investors Manifest a
                                                                                                         ADVERTISING
        FOUNDER
   Market Wealth Today                                                                   “Cashflow” Mindset Media Partners
                                                                                                       Manifest
                                                                                                                                                                                                      CashFlow Express is published in San-         of qualified renters. It all adds up to stable investments, call (866)732-3220 or email:
        Linda Pliagas                                                                                                                                                                                 ta Barbara County by Manifest Media
     pliagas@msn.com
                                                                                         By Doug Carver
                                                                                         Organizer Pasadena and Burbank
                                                                                                                                            310.994.1962
                                                                                                                                             estate investing, trading stocks, building
                                                                                                                                             a strong MLM business, etc. You will not

                                                                                                                                                                                                      Partners. ©Copyright 2007-2012. All           high yields for people investing in buy- cashflow@HomeUnionServices.com
                                                                                         I
                                                                                         Cashflow Meetup Groups                               succeed. It’s like trying to grow corn in


                                                                                                                                       EVENTS & EXPOS
                                                                                                                                             a field of sand. The seeds will not germi-


   EDITORIAL STAFF                                                                                                                                                                                    Rights Reserved. Reproduction without
                                                                                                  can remember my first time play-            nate and you’ll end up with next to noth-
                                                                                                  ing Robert Kiyosaki’s Cashflow              ing to harvest in the fall.
                                                                                                  board game about eight years                  How, you ask, does this relate to the


                                                                                                                                          Lawrence Ruano
                                                                                                  ago and how it                                                     Cashflow game?


         Lori Peebles                                                                                                                                                                                 permission is strictly prohibited. The
                                                                                                  started a chain                                                    Well, after playing
                                                                                         of events that continues                                                    the game a bunch



                                                                                                                                           Wendy Pineda
                                                                                         to this day. What stuck                                                     of times, I learned


        Anita Cooper                                                                                                                                                                                  opinions expressed by writers and col-
                                                                                         with me most was not the                                                    the “how to” of


                                                                                                                                                                                                                                                     CashFlow Mindset, pg. 1
                                                                                         “how to” of playing the                                                     getting out of the
                                                                                         game but the people that                                                    rat race, but I still


                                                                                                                                 CALIFORNIA DISTRIBUTION
                                                                                         I met at the event. These                                                   was not able to


       Andre Sanchez                                                                                                                                                                                  umnists are not endorsed by the pub-
                                                                                         were not like the normal                                                    take what I learned
                                                                                         people in my life that                                                      from the game and



                                                                                                                                  Professional Distribution Solutions
                        By Tyrone Jackson      companies and products with which         would tell me I was crazy Dougthe Cashflow gameChris Hanson dis-
                                                                                                                        play
                                                                                                                              Carver (left) and
                                                                                                                                                 to group members.
                                                                                                                                                                     apply it to my real-



      Brianna Bertrand                                                                                                                                                                                lishers and/or editorial staff. Before in-
                                               you are familiar.                         for trying to start my own                                                  life financial situ-
                     TheWealthyInvestor.net



    Yes! EDITOR
                                                   If you’ve ever opened a can of        real estate business or                                                     ation. However, I
                                 You can be    Coca Cola on a hot summer day and         that financial freedom was impossible                realized that the time I was spending with


                                                                                                                                           1.877.418.6500
                                 rich from     felt refreshed and invigorated, why       without a steady well-paying job. The               my new Cashflow friends was changing


     COPY                                                                                                                                                                                             vesting in stocks, bonds, mutual funds,
                                                                                                                                             the way I thought about money and my



                                                                                                                                                                                                                                                                                                        financial opportunity and money-making
                                 owning real                                             people I met were excited about learn-



                                                                                                                                                                                                                                                    real estate activities.
                                               not own the stock? It’s a product you
    estate and trading stocks.                 know with a story you understand.         ing and expanding their knowledge on                financial future. I no longer viewed the
                                                                                         how to achieve financial freedom. They               stock market as a giant rigged system for


                                                                                                                                  NATIONAL DISTRIBUTION
        We’ve all heard the story of the       When I say “a story you understand,”


        Anita Cooper
                                                                                                                                             losing money. I began to see the tremen-

                                                                                                                                                                                                      gold, other securities and commodities
    little old lady who lived modestly         I mean to say that you understand         were active investors in real estate and
    and worked as a school teach-                                  how the Coca Cola     the stock market. They were small busi-             dous opportunities in the sinking real es-
    er for 40 years. She never                                     Corporation makes     ness owners with a passion and vision               tate market even as many people I knew


                                                                                                                                       KJ Banks: 805.377.6328                                                                                          Robert Kiyosaki’s Cashflow 101 and               possibilities. By hanging out with these
    earned more than $35,000 per                                   money, or to ex-      for creating more financial success in               were losing money on deals that had gone


   PHOTOGRAPHERS                                                                                                                                                                                      and/or real estate, seek the advisement
    year, owned a modest home,                                     press it in Wall      their lives. Overall, they had a mindset            bad. Overall, I saw for the first time op-
    and shared her life with two                                   Street terms, you     for prosperity that I like to call a “Cash-         portunities all around me to create wealth
    cats. Once she died, her rela-                                 understand      how   flow” mindset.                                       even as the newspapers talked constantly



         Sam Green
                                                                                                                                             of the “Great Recession.”

                                                                                                                                                                                                      of a trusted financial adviser, attorney
                                                                                            A lot of people complain that Kiyosaki

                                                                                                                                         PUBLISHED BY
    tives discovered a $150,000                                    the company earns




                                                                                                                                                                                                                                                    202 are great boardgames to expand your             folks at your local Cashflow group, I
    life insurance policy and $1.5                                 revenue. The more     does not provide the specific details on                Today as a result of my ongoing in-
    million in stocks that she left                                bottles and cans of   how people should implement his strat-              volvement playing and organizing local
    to the elementary school’s                                     Coke that Coca        egies to create financial freedom in his             Cashflow events in Southern California,


       John DeCindis                                                                                                                   Manifest Media Partners                                        or tax consultant. Investing is risky busi-
    scholarship fund.                                              Cola sells around     books and programs. Truth is he never               I have a thriving real estate investing
        The national media loves                                   the world each day,   spells out a step-by-step “how to” for              business. It was after speaking with one
                                                                                                                                             of my Cashflow friends who was a real



                                                                                                                                                                                                                                                                                                        know you to will begin to develop your
                                                                                         building long-term financial freedom.



                                                                                                                                                                                                                                                    financial intelligence, but I hope you can
    to air these stories. It seems                                 the larger the com-
                                                                                                                                             estate investor that I was encouraged to

                                                                                                                                                                                                      ness and may result in loss of capital.
                                                                                         What he does teach is far more impor-

     PRODUCTION
    there are several old ladies                                   pany’s profit. Over
                                                                                         tant, and that is how to create a “Cash-            start wholesaling distressed properties. It

                                                                                                                                    SUBSCRIPTIONS/INFO:
    who fit this seemly unique                  the past ten years Coke stock (symbol
    profile year after year. How could          KO) has risen from around $40 per         flow” mindset. Kiyosaki describes it in              turned out to be a great decision. More
    that be?                                   share to a high of $71 — $1000 in-        his book Cashflow Quadrant moving                    recently, I’ve begun to learn how to suc-


     Augusto Meneses                                                                                                                                                                                  Please invest responsibly.
        Investing in stocks is not the                                                   your mindset from the E (employee) and              cessfully trade in the stock market using



                                                                                                                                                                                                                                                                                                        own “Cashflow” mindset and begin to see
                                               vested in Coca Cola stock ten years


                                                                                                                                          310.499.9545                                                                                              now see they are the basis for so much
    world’s most challenging task. In          ago would be worth $4,100 today;          S (self-employed) side of his Cashflow               options. As a self-proclaimed real estate
    fact, at its core, it’s very simple. The   $10,000 invested in Coca Cola stock       quadrant to the B (business owner) and              “zealot”, I never would have dreamed of
    truth is that the stock market creates                                               I (investor) side of the quadrant. In lay-          investing in the equity markets. Howev-


     WEB DESIGN
                                               would be worth $41,000 today.
                                                                                                                                             er, after playing Cashflow 202 with my


                                                                                                                                    Join Our VIP Social Network:
    millionaires every year. Investing in         If you spend more than $100 per        man’s terms, it’s the mental shift from


                                                                                                                                                                                                      PRINTED IN THE USA.
    stocks, with wealth in mind, is easier     year eating fast food, why not own        someone who seeks financial security at              Cashflow friend ,who is an active trader,




                                                                                                                                                                                                                                                    more. They create a framework for build-            real changes in your financial future.
    than you think.                            the stock? Over the past ten years        all costs to someone who can confidently             and learning about his trading system, I


        Diggs Design
                                               McDonalds stock (symbol MCD) has          and knowledgeably take measured risks.              was able to see the opportunity before


                                                                                                                                http://realty411guide.ning.com                                        GOD BLESS AMERICA
         Invest In What You Know               risen from a low of $15 per share to a    This is a simplistic definition but a very           me. I now fully expect that investing in
                                               high of $95 per share.                    important one to understand. Without the            the markets will be a huge part of my fu-
      Wanna be a good stock market in-                                                   correct mindset, it really doesn’t matter           ture financial success in addition to my
                                                                                         how much you learn the “how to” of real



                                                                                                                                                                                                                                                    ing lasting relationships with people who
    vestor? Keep it simple and start with                          Continued on pg. 12
                                                                                                                                                                       Continued on pg. 2




                                                                            Connect to our virtual network ~ Search for us here:
                  Personal Finance News from the Publishers of Realty411 Magazine - www.Realty411Guide.com



                                                                                                                                                                                                                                                    have a “Cashflow” mindset. These are                For more information about Doug Carv-
                                                                                                                                                                                                                                                    people who are actively pursuing finan-             er’s Pasadena/Burbank Cashflow Meetup
                                                                                                                                                                                                                                                    cial freedom and see the world full of              group, please call: 626.524.2712

                                                                                                                                                                                                                                      CashFlow Express • Page 2
publisher’s note                                                                                    Be A Guest at a FREE

6 KEYS FOR
                                                                                                    Foreclosure Workshop
                                                                                                    with Lloyd Segal,


          financial
                                                                                                    California’s Foreclosure Expert!
                                                                                                      To learn more about a



             freedom
                                                                                                   FREE Foreclosure Workshop
                                                                                                       near you, please call:                  NEW BOOK

                                                                                                       888.285.0101                             Released
                                                                                                                                               April 2012!


By Linda Pliagas, editor & publisher                                                                 ForeclosureWorkshop.net

E
                                                      ample, if you are a first-time home
           veryone                                    buyer (or even an empty nester), be
           yearns for                                 open to the idea of purchasing a du-
           abundance                                  plex or other multifamily property
           and financial                              instead of a typical single family
security, it is a human                               residence. This way, you can live
desire we all share. It is                            in one unit and rent out the other
a motivation ingrained                                for income. As a landlord myself,
in us as part of our                                  I know it’s not easy to live near
survival mechanism.                                   tenants, but if you screen your pro-
While we all have this                                spective renters correctly, it will re-
in common, only a lim-                                duce future nightmares. Be smart,
ited few ever actually reach true financial    let other people pay off your mortgage!
security. The statistics can be depressing.    You can always save money and then buy
According to the Retirement Confidence         another home later, after you build a pas-
Survey (2006), 53% of Americans have           sive income stream.
less than $25,000 in retirement savings.
Plus, 30% mistakenly believe that they 2. Increase Your Formal AND Finan-
will only need $250,000 or less in total cial Education. Did you know that earn-
retirement 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 an-
tive 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 com-
eracy 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
perk to this profession
                                                                    school part-time. It’s
                                                                    never to late!                                Real Estate
was being able to unlock
their secrets. I’ve com-
piled a list of important
                                                                       It’s also important
                                                                    to keep in mind that
                                                                    universities do NOT
                                                                                                              Syndication Lawyers
guidelines, which were                                              teach people how to                    Private Placements • Group Investments
followed by many of                                                 get rich. So on top of                LLC/Partnership Agreements • All 50 States
those who transformed                                               your formal educa-
their mediocre life and                                             tion, start taking class-
average paychecks into Linda with real estate mogul & educator es about investing.                            www.SyndicationLawyers.com
                               Dave Lindahl (www.REmentor.com)
extraordinary wealth.                                               Financial classes are
   These steps are not                                              taught at most adult                       For information, call: 949-855-8399
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

1. Reduce Your Household Expenses.
                                                 from top mentors, such as Dave Lindahl.
                                                                                                  Looking for a Turnkey Rental in Kansas City?
In California, we have some of the highest 3. Be an Aggressive/Conservative In-
real 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 con-
that I have seen many real estate moguls servative, it isn’t. It’s all about planning.
make is that they start off their portfolio
with a multifamily investment. For ex-                                     Continued on pg. 9




       ebsite
 The W nched                                            Sign Up Online
   t Lau ut
tha Deb
   Our zine!                                             for our Pocket
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     CASHFLOWCOWS.com                                                             CashFlow Express • Page 3
Focus vs. Diversification                                                                      your control over your investments. It’s
                                                                                                extremely important to continue to in-
                                                                                                crease your financial intelligence in order
                                                                                                                                               Diversification is not required if a person
                                                                                                                                               knows what they are doing.” So if diver-
                                                                                                                                               sification is a protection against ignorance


A CPA/Investor’s Analysis
                                                                                                to protect yourself. Unfortunately, finan-     then when you diversify who’s ignorance
                                                                                                cial intelligence is not taught in schools     are you protecting yourself from? Your
                                                                                                because such a large portion of the popu-      ignorance and your financial advisors’
                                                                                                lation, including teachers and politicians,    ignorance? Focus, not diversification, is
                                                                                                do not have a very high financial IQ.          the key to more sophisticated leverage,
By Mathew Owens, CPA                           vesting in non-paper assets (i.e. not mutu-          When financial advisors say that an        higher returns, and lower risk.
www.ocgproperties.com                          al funds or CDs) allows you to use lever-        increase in returns means an increase in          The point I am trying to make is that




M
                                               age as well, which increases your wealth         risk, they are right when speaking about       if you increase your financial intelligence
                     ost of                                           by making your            the paper assets they recommend to inves-      about specific asset classes, like real es-
                     what                                             money work harder         tors that they make major commissions          tate, you will learn how to control your
                     h a s                                            for you. Most finan-      on BEFORE showing performance. They            own financial security and wealth cre-
                     been                                             cial planners will        are wrong when speaking for all assets.        ation, instead of relying on some finan-
                     drilled                                          tell you that using       Financial advisors are simply salespeople.     cial advisor who probably does not know
into our heads about in-                                              leverage increases        Most people invest in paper assets such as     what they are doing. Look at the massive
vesting in mutual funds,                                              risk. That is not al-

                                                                                                          Most financial advisors
CDs paying down our                                                   ways the case if you
mortgage and diversify-                                               have the right finan-
                                                                      cial knowledge to
                                                                                                        recommend diversification
ing is nothing but smoke
and mirrors. The financial                                            control the invest-
services companies like                                               ment and enable
Fidelity, Charles Schwab
and financial planners are
                                                                      safety controls on
                                                                      your leverage use.              but they do not really diversify.
the ones making all of                                                They will also tell
the money. The problem                                                you that real estate
is that most people have                                              is a risky invest-
very little financial edu-                                            ment. The reason          savings, stocks, bonds, mutual funds and       wealth transfer that just occurred when
cation in order to invest for                                         for that is that finan-   index funds because they do not want to        the market crashed while bailing out the
retirement properly so they hand over          cial planners typically lack the financial       take responsibility and control over their     banks (i.e. the top 1% wealthy individuals
their money to someone they HOPE will          knowledge about how to control real es-          financial well being. All they want is to      increased their wealth while the middle
have the right knowledge base to safely        tate and make it profitable. Most finan-         turn their money over to an investment         class and poor decreased in wealth). This
increase their wealth. The problem is          cial planners put people into paper assets       advisor who hopefully does a good job.         happened because most people do not
that these investment types are HUGE-          where the investor does not have control         Out of sight, out of mind. If people want      have the financial intelligence to protect
LY RISKY. These types of asset classes,        and therefore it is hugely risky to use          more control, the first thing they need to     themselves.
paper assets, do not allow the investor        leverage. In real estate investments the         do is increase their financial intelligence      Starting to get financially educated is
control. Then during market crashes, all       value of the property should not be based        and, hopefully increase their financial        the key to wealth creation. So get to the
most investors can do is watch helplessly      on the “opinion” of an appraiser but on          controls and leverage ratios.                  bookstore and start reading. Take classes
as their wealth gets whipped out along         the income that it produces through rents.          Most financial advisors recommend di-       on financial intelligence and ways to in-
with their financial security.                 The value of the rental real estate is de-       versification but they do not really diver-    crease wealth. It is key to your success and
   If you have more control over your as-      pendent on jobs, salaries, demographics,         sify. First they only invest your money        preserving your wealth so that financial
sets then you are not affected as much by      local industry, and supply and demand of         in one asset class, paper assets. Second,      predators (i.e. the government, financial
market crashes. For example, if you in-        affordable housing. In a housing crash,          mutual funds are already diversified in-       advisors, and large mutual fund peddling
vest in assets like real estate that produce   the demand for rental units often goes up,       vestments which are invested in a pool         companies) do not take all of your wealth
cash flow through rental income after all      which means rents increase causing the           of good and bad stocks which does not          away by investing it in asset classes that
of your expenses are covered, if the real      value of your property to increase. You          increase the value or decrease the risk        do not allow you any controls over those
estate market and stock market crash you       can control rental real estate and which         of the investments. Professional inves-        investments.
are still in great shape. While everything     geographic areas you invest in unlike pa-        tors DO NOT diversify. Warren Buffett
is crashing you are still receiving your       per assets that allow no control. Finan-         put it perfectly when he said, “Diversifi-     To contact Mathew Owens, please see
rents and do not need to sell the asset. In-   cial intelligence is the key to increasing       cation is a protection against ignorance.      OCG Properties’ advertisement below.




             REI Voice™: the Voice of the Profitable
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                                                                                  CashFlow Express • Page 4
Jump Start a New Year of Success                                                                                                                                                                                                                                             Cash vs. Cashflow, pg. 6

                                                                                                                                                                                                                                                                                            If you get nothing from this article,
                                                                                                                                                                                                                                                                                         please get this. First, if you ever expect to
            By Geraldine Barry                                                                                                                        tic but now as I grow                                                   yourself, this is a process it does not hap-               create wealth and experience any sort of
            Founder of SJREI and REI Voice                                                                                                            and learn to navigate                                                   pen over-night.                                            financial independence while you’re still




            I
                                                                                                                                                      this game called life, I                                                                                                           young enough to enjoy it, you’ll need to
                  t’s a New Year — time to re-                                                                                                        have come to embrace                                                     • Lastly, live in the moment — whatever                   adopt, embrace and implement a residual
                  evaluate, improve and refine                                                                                                        this gift that I have been                                              you are doing give it 100% of your atten-                  mindset. Second, don’t get stopped in
                  our daily habits and actions                                                                                                        blessed with every day.                                                 tion. Walking the dog, having tea with a                   your pursuit of residual income by con-
                  for success. Small, incremen-                                                                                                       How do I do that? I start                                               friend, working, talking to your children -                fusing the value of cash and cashflow.
            tal changes can reap big rewards                                                                                                          my day with a prayer of                                                 be present, enjoy that moment. Your fam-                   Making the transition from accumulator
            in terms of productivity and busi-                                                                                                        gratitude naming the                                                    ily and friends will love you for this level               to residual-incomer and creating wealth
            ness opportunities. As a planner myself, I                                                                              things that I am grateful for — my fam-                                                   of attention — very few people can truly                   can also take some time, but by maintaing
            understand the significance of establish-                                                                               ily, my warm cozy home, my friends, a                                                     do this. Be wary of electronics they can                   a focus on cashflow, the time it takes will
            ing goals to create new outcomes. If we                                                                                 hot cup of tea, a great book, quiet time to                                               be thieves of our time, and our spirit...the               be nothing in the remote vicinity of the 40
            can break those down into smaller more                                                                                  think, process or write, my warm SJREI                                                    things that renew you are not material —                   year traditional alternative.
            manageable components we can achieve                                                                                    business community.                                                                       they are love, companionship, friendship,
                                                                                                                                       By appreciating these things, and so                                                   family, community, giving back.                            Matt Theriault is an author, entrepreneur
            results more quickly.
                                                                                                                                    many other seemingly trivial things I am                                                     Be brave, do whatever it takes to ac-                   and host of the fastest growing real estate
               Here are some things to consider as
                                                                                                                                    happier, more content and I realize that                                                  complish new results — Make 2012 your                      investing podcast on iTunes. Visit www.
            you plan for another year:
                                                                                                                                    what I appreciate grows more secure, and                                                  best year yet!                                             EpicProfessionals.com for more infor-
                                                                                                                                    becomes more defined in my life.                                                          Geraldine Barry is founder and president                   mation and to retrieve his free real estate
            • If you don’t like things in your life you
                                                                                                                                       Try it — I think you will like it too.                                                 of SJREI Association the premier educa-                    investing course How to Do Deals — No
            have the power to change them by simply
                                                                                                                                                                                                                              tional and networking association for real                 Money Required.
            changing yourself — things don’t change,
            but you can! Any little modification can                • There are people who drag us down                                                                                                                       estate investors in the Bay area. Under
            make a difference — an introduction of                  — nay sayers if you will. Remove those                                                                                                                    Geraldine’s leadership SJREI has grown
            something new, an exercise routine, a dai-              people from your life. If they are your                                                                                                                   from a half-dozen investors to a vibrant                    Dream of Retiring Early?


T WITH CONFIDENCE
            ly reading schedule, journaling, or simply              family members, show them a new way                                                                                                                       three chapter organization with over 400
                                                                    to be by mirroring for them your great                                                                                                                    investors attending monthly meetings.                       Join our Facebook
            bonding with your family.
                                                                    new attitude. My Dad shared with me                                                                                                                          In addition to leading SJREI, Geraldine                  Group and Mingle
            • How you present yourself to the world (he ran a company, and had a family of                                                                                                                                    is the frequent host of the radio program,                  with Successful
            makes a difference, how you look, how six daughters, two sons and a wife!) that                                                                                                                                   Going Beyond Real Estate, a regular                         Investors who Share

 E D I AT E C A S H F LOW
            you speak, how you interact with others, sometimes he survived by “psychologi-
            who you interact with, what you read, cally absenting himself” from negative
                                                                                                                                                                                                                              guest on the nationally broadcasted NT-
                                                                                                                                                                                                                              DTV, publisher of award winning publica-
                                                                                                                                                                                                                                                                                          Your Financial Goals.
                                                                                                                                                                                                                                                                                                           Share Tips • Post Deals
            what you spend your time doing. What situations.                                                                                                                                                                  tion REI Voice Magazine, and producer
            D                          iscover the lowest-risk, highest-quality residential investment properties in the                                                                                                                                                                                  Request & Give Referrals
            is your message to the world? Using sophisticated methodology,youbest investment properties areout,
                                                  I am here,           How do              do that? Tune them                                                                                                                 of the annual Bay Area Real Estate Expo.
                                       country.                                      the                                                                                                                                                                                                                  Post Links • Interact with
            ready to take on a new challenge an experienced investor and rehabbed beautifully to situations,
                                  carefully selected by and I       capitulate, get away from secure the                                                                                                                      Geraldine resides in Silicon Valley, and is
                                                                                                                                                                                                                                                                                                           Nearly 3,000 members!
            want to change the best tenants. With competent property management, and instant cashdon’t propel
                                   world in a positive people and attitudes that flow, your                                                                                                                                    the proud mother of Colin and Claire, her
                                  investment pays worry-free dividends from day one. Remember to be gentle as
            way... it is your choice.                               you forward.                                                                                                                                              two children. Contact Geraldine Barry                       JOIN & POST TO THE GROUP BY EMAILING:

             • I have always been incredibly optimis- you work on this and have patience with                                                                                                                                 at: sjrei.geraldine@gmail.com                               retireearlywithrealestate@groups.facebook.com
                                                                                    PROFILE OF YOUR FUTURE PORTFOLIO




                                           INVEST WITH CONFIDENCE                                                                                                                                                                   Flip or Rent Cash Generating
                                                                                                                                                                                                                          411      Properties in the Hottest Markets
                                                                                                                                                           Print • Online • Network



                                                                         I M M E D I AT E C A S H F LOW
                                                                                  “Contact me for a
                                                                            “Contact me for D free cash flow analysis”                                                                                                                Across the Nation with our
                                                                                                                                          iscover the lowest-risk, highest-quality residential investment properties in the

                                                                                            a                         free cash flow analysis.”
                                                                                                                                          country. Using sophisticated methodology, the best investment properties are
                                                                                                                                    carefully selected by an experienced• investor and rehabbed beautifully to secure the
                                                                                                                                        www.realty411guide.com | Vol. 4 • No. 1 2011
                                                                                                                                    best tenants. With competent property management, and instant cash flow, your
                                                                                                                                                                                                                              A Resource Guide for Investors

                                                                                                                                    investment pays worry-free dividends from day one.




d receive one-year of free
                                                                                                                                    PROFILE OF YOUR FUTURE PORTFOLIO
                                                                                                                                                         TOM WILSON, President
                                                                                                                                                         408-867-1867
                                                                                                                                                                                                                                   REMOTE REHABS™ System!
 your first purchase.                                                                                                                                     TomKWilson@earthlink.net
                                                                                                                                                         TomWilsonProperties.com
                                                                                                                                                  “Contact me for a
             Price: $110,000, fully renovated, built 2005
             Currently Rented for $1,195                                                                                                          free cash flow analysis.”


                                                                           411                                         Invest with the Market Leader
                                                                                                                                                                                   TOM WILSON, President
                 Mention REI Voice Magazine and receive one-year of free
                                      Print • Online
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                     property management with your first purchase.                                                                                                                  TomKWilson@earthlink.net



                                                                                                                       MemphisInvest.com
                                                                                   A Resource Guide
                                                                                                      for Investors
                                                                                                                                                                                   TomWilsonProperties.com
                                                    4 • No. 1 • 2011
                                    de.com | Vol.
                 www.realty411gui




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CashFlow Express new release!

  • 1. Ca$hFlow EXPRESS No. 1 / Vol. 1 2012 Passive Income for Today & Tomorrow FREE Learn How to Create Stock Investors Manifest a Market Wealth Today “Cashflow” Mindset By Doug Carver estate investing, trading stocks, building Organizer Pasadena and Burbank a strong MLM business, etc. You will not I Cashflow Meetup Groups succeed. It’s like trying to grow corn in a field of sand. The seeds will not germi- can remember my first time play- nate and you’ll end up with next to noth- ing Robert Kiyosaki’s Cashflow ing to harvest in the fall. board game about eight years How, you ask, does this relate to the ago and how it Cashflow game? started a chain Well, after playing of events that continues the game a bunch to this day. What stuck of times, I learned with me most was not the the “how to” of “how to” of playing the getting out of the game but the people that rat race, but I still I met at the event. These was not able to were not like the normal take what I learned people in my life that from the game and By Tyrone Jackson companies and products with which would tell me I was crazy Dougthe Cashflow gameChris Hanson dis- play Carver (left) and to group members. apply it to my real- you are familiar. for trying to start my own life financial situ- TheWealthyInvestor.net Yes! If you’ve ever opened a can of real estate business or ation. However, I You can be Coca Cola on a hot summer day and that financial freedom was impossible realized that the time I was spending with rich from felt refreshed and invigorated, why without a steady well-paying job. The my new Cashflow friends was changing owning real not own the stock? It’s a product you people I met were excited about learn- the way I thought about money and my estate and trading stocks. know with a story you understand. ing and expanding their knowledge on financial future. I no longer viewed the We’ve all heard the story of the When I say “a story you understand,” how to achieve financial freedom. They stock market as a giant rigged system for little old lady who lived modestly I mean to say that you understand were active investors in real estate and losing money. I began to see the tremen- and worked as a school teach- how the Coca Cola the stock market. They were small busi- dous opportunities in the sinking real es- er for 40 years. She never Corporation makes ness owners with a passion and vision tate market even as many people I knew earned more than $35,000 per money, or to ex- for creating more financial success in were losing money on deals that had gone year, owned a modest home, press it in Wall their lives. Overall, they had a mindset bad. Overall, I saw for the first time op- and shared her life with two Street terms, you for prosperity that I like to call a “Cash- portunities all around me to create wealth cats. Once she died, her rela- understand how flow” mindset. even as the newspapers talked constantly tives discovered a $150,000 the company earns A lot of people complain that Kiyosaki of the “Great Recession.” life insurance policy and $1.5 revenue. The more does not provide the specific details on Today as a result of my ongoing in- million in stocks that she left bottles and cans of how people should implement his strat- volvement playing and organizing local to the elementary school’s Coke that Coca egies to create financial freedom in his Cashflow events in Southern California, scholarship fund. Cola sells around books and programs. Truth is he never I have a thriving real estate investing The national media loves the world each day, spells out a step-by-step “how to” for business. It was after speaking with one to air these stories. It seems the larger the com- building long-term financial freedom. of my Cashflow friends who was a real there are several old ladies pany’s profit. Over What he does teach is far more impor- estate investor that I was encouraged to who fit this seemly unique the past ten years Coke stock (symbol tant, and that is how to create a “Cash- start wholesaling distressed properties. It profile year after year. How could KO) has risen from around $40 per flow” mindset. Kiyosaki describes it in turned out to be a great decision. More that be? share to a high of $71 — $1000 in- his book Cashflow Quadrant moving recently, I’ve begun to learn how to suc- Investing in stocks is not the vested in Coca Cola stock ten years your mindset from the E (employee) and cessfully trade in the stock market using world’s most challenging task. In ago would be worth $4,100 today; S (self-employed) side of his Cashflow options. As a self-proclaimed real estate fact, at its core, it’s very simple. The $10,000 invested in Coca Cola stock quadrant to the B (business owner) and “zealot”, I never would have dreamed of truth is that the stock market creates would be worth $41,000 today. I (investor) side of the quadrant. In lay- investing in the equity markets. Howev- millionaires every year. Investing in If you spend more than $100 per man’s terms, it’s the mental shift from er, after playing Cashflow 202 with my stocks, with wealth in mind, is easier year eating fast food, why not own someone who seeks financial security at Cashflow friend ,who is an active trader, than you think. the stock? Over the past ten years all costs to someone who can confidently and learning about his trading system, I McDonalds stock (symbol MCD) has and knowledgeably take measured risks. was able to see the opportunity before Invest In What You Know risen from a low of $15 per share to a This is a simplistic definition but a very me. I now fully expect that investing in high of $95 per share. important one to understand. Without the the markets will be a huge part of my fu- Wanna be a good stock market in- correct mindset, it really doesn’t matter ture financial success in addition to my vestor? Keep it simple and start with Continued on pg. 12 how much you learn the “how to” of real Continued on pg. 2 Personal Finance News from the Publishers of Realty411 Magazine - www.Realty411Guide.com
  • 2. Will Big Money Run Away with Cashflow Ready to Make an Extra $5,000 to Real Estate Investments? $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 A great financial opportunity does not stay under the radar for long. The side road with less traf- fic gets crowded pretty soon as drivers hear about it and jump 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 in the stock market. His Wealthy Artist/Wealthy Investor program exposes both the experienced off the freeway. High trader & novice to the powerful concept of monthly residual income. yield cash flow real es- tate investments may Join Tyrone & the CashFlow Express Team be headed for a similar on February 5 for their Success 2012 Seminar fate. This is a FREE WORKSHOP, but guests Retail investors have must RSVP by calling 310.499.9545 had this opportunity staring them in the face for a while, and many have taken advan- tage of it. Retirees or Join BILL GATTEN at his next event and learn the people about to retire, KEY TO CAPITALIZING ON FREE REAL ESTATE individuals suffering from ‘market gyration (Acquisition and Ownership) in This Crazy Economy! trauma’ and high-net-worth individuals real estate investments are quickly be- seeking portfolio diversification have all coming the ‘unapartment’ portfolios of We will teach you how our “TRIAD APPROACH” can been adding cashflow residential real es- these funds. provide the professional real estate community with a tate to their portfolio. SAFE VEHICLE FOR ACQUIRING, SELLING AND So what should the retail DEALING WITH ALL TYPES OF REAL ESTATE. So what changed? investor do? Like all markets this one is moving be- The retail investor should take action. Learn more at www.LandTrust.net yond the early adopter stage. And the fac- This is still a fragmented market that al- or call 1.800.409.3444 tors that have made this a great investment lows an investor to own one, two or opportunity are compounding. There are three properties. They cannot do this in more distressed assets hitting the market multifamily commercial real estate other - Call Or Visit Our Website for Upcoming Educational Training - with a larger shadow inventory waiting in than by investment in a fund or a REIT. the wings. Morgan Stanley just published But it’s important that investors act pru- d e n t l y. T h i s m e a n s contents not investing in their own backyard favoring proximity over return, not investing with fly- by-night property sell- ers who peddle ‘high 1 Create Stock Market Wealth 6 Cash Versus Cashflow return’ properties and then disappear leaving 1 Have a Cashflow Mindset 7 Calculate Your ROI the investor holding 2 Will Big Money Run Away? 8 The Nested Action Cycle the bag. And not doing thorough due diligence 3 Six Tips for Faster Wealth 9 Investor Spotlight on the area, the prop- erty and the provider. 4 Focus Versus Diversification 10 Resource Directory The HomeUnion Services team are ready to assist new investors. Finally, they should 5 Jump Start Success 11 Inside Our Expos 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 invest- ownership declining to 59%. A recent ment. In other words, the retail investor Our Goal is to Educate, Motivate & Inspire New Investors Mortgage Bankers Association study says has to do the very things that the large Ca$hFlow Realty411 that home prices may have hit bottom. funds do before they invest. EXPRESS This means that investors have a grow- ing number of properties that they can buy Discover a whole new way to unleash fully- No. 1 / Vol. 1 2012 Passive Income for Today & Tomorrow FREE cheaply and then select from a large pool managed, high-income cashflow real estate Learn How to Create Stock Investors Manifest a ADVERTISING FOUNDER Market Wealth Today “Cashflow” Mindset Media Partners Manifest CashFlow Express is published in San- of qualified renters. It all adds up to stable investments, call (866)732-3220 or email: Linda Pliagas ta Barbara County by Manifest Media pliagas@msn.com By Doug Carver Organizer Pasadena and Burbank 310.994.1962 estate investing, trading stocks, building a strong MLM business, etc. You will not Partners. ©Copyright 2007-2012. All high yields for people investing in buy- cashflow@HomeUnionServices.com I Cashflow Meetup Groups succeed. It’s like trying to grow corn in EVENTS & EXPOS a field of sand. The seeds will not germi- EDITORIAL STAFF Rights Reserved. Reproduction without can remember my first time play- nate and you’ll end up with next to noth- ing Robert Kiyosaki’s Cashflow ing to harvest in the fall. board game about eight years How, you ask, does this relate to the Lawrence Ruano ago and how it Cashflow game? Lori Peebles permission is strictly prohibited. The started a chain Well, after playing of events that continues the game a bunch Wendy Pineda to this day. What stuck of times, I learned Anita Cooper opinions expressed by writers and col- with me most was not the the “how to” of CashFlow Mindset, pg. 1 “how to” of playing the getting out of the game but the people that rat race, but I still CALIFORNIA DISTRIBUTION I met at the event. These was not able to Andre Sanchez umnists are not endorsed by the pub- were not like the normal take what I learned people in my life that from the game and Professional Distribution Solutions By Tyrone Jackson companies and products with which would tell me I was crazy Dougthe Cashflow gameChris Hanson dis- play Carver (left) and to group members. apply it to my real- Brianna Bertrand lishers and/or editorial staff. Before in- you are familiar. for trying to start my own life financial situ- TheWealthyInvestor.net Yes! EDITOR If you’ve ever opened a can of real estate business or ation. However, I You can be Coca Cola on a hot summer day and that financial freedom was impossible realized that the time I was spending with 1.877.418.6500 rich from felt refreshed and invigorated, why without a steady well-paying job. The my new Cashflow friends was changing COPY vesting in stocks, bonds, mutual funds, the way I thought about money and my financial opportunity and money-making owning real people I met were excited about learn- real estate activities. not own the stock? It’s a product you estate and trading stocks. know with a story you understand. ing and expanding their knowledge on financial future. I no longer viewed the how to achieve financial freedom. They stock market as a giant rigged system for NATIONAL DISTRIBUTION We’ve all heard the story of the When I say “a story you understand,” Anita Cooper losing money. I began to see the tremen- gold, other securities and commodities little old lady who lived modestly I mean to say that you understand were active investors in real estate and and worked as a school teach- how the Coca Cola the stock market. They were small busi- dous opportunities in the sinking real es- er for 40 years. She never Corporation makes ness owners with a passion and vision tate market even as many people I knew KJ Banks: 805.377.6328 Robert Kiyosaki’s Cashflow 101 and possibilities. By hanging out with these earned more than $35,000 per money, or to ex- for creating more financial success in were losing money on deals that had gone PHOTOGRAPHERS and/or real estate, seek the advisement year, owned a modest home, press it in Wall their lives. Overall, they had a mindset bad. Overall, I saw for the first time op- and shared her life with two Street terms, you for prosperity that I like to call a “Cash- portunities all around me to create wealth cats. Once she died, her rela- understand how flow” mindset. even as the newspapers talked constantly Sam Green of the “Great Recession.” of a trusted financial adviser, attorney A lot of people complain that Kiyosaki PUBLISHED BY tives discovered a $150,000 the company earns 202 are great boardgames to expand your folks at your local Cashflow group, I life insurance policy and $1.5 revenue. The more does not provide the specific details on Today as a result of my ongoing in- million in stocks that she left bottles and cans of how people should implement his strat- volvement playing and organizing local to the elementary school’s Coke that Coca egies to create financial freedom in his Cashflow events in Southern California, John DeCindis Manifest Media Partners or tax consultant. Investing is risky busi- scholarship fund. Cola sells around books and programs. Truth is he never I have a thriving real estate investing The national media loves the world each day, spells out a step-by-step “how to” for business. It was after speaking with one of my Cashflow friends who was a real know you to will begin to develop your building long-term financial freedom. financial intelligence, but I hope you can to air these stories. It seems the larger the com- estate investor that I was encouraged to ness and may result in loss of capital. What he does teach is far more impor- PRODUCTION there are several old ladies pany’s profit. Over tant, and that is how to create a “Cash- start wholesaling distressed properties. It SUBSCRIPTIONS/INFO: who fit this seemly unique the past ten years Coke stock (symbol profile year after year. How could KO) has risen from around $40 per flow” mindset. Kiyosaki describes it in turned out to be a great decision. More that be? share to a high of $71 — $1000 in- his book Cashflow Quadrant moving recently, I’ve begun to learn how to suc- Augusto Meneses Please invest responsibly. Investing in stocks is not the your mindset from the E (employee) and cessfully trade in the stock market using own “Cashflow” mindset and begin to see vested in Coca Cola stock ten years 310.499.9545 now see they are the basis for so much world’s most challenging task. In ago would be worth $4,100 today; S (self-employed) side of his Cashflow options. As a self-proclaimed real estate fact, at its core, it’s very simple. The $10,000 invested in Coca Cola stock quadrant to the B (business owner) and “zealot”, I never would have dreamed of truth is that the stock market creates I (investor) side of the quadrant. In lay- investing in the equity markets. Howev- WEB DESIGN would be worth $41,000 today. er, after playing Cashflow 202 with my Join Our VIP Social Network: millionaires every year. Investing in If you spend more than $100 per man’s terms, it’s the mental shift from PRINTED IN THE USA. stocks, with wealth in mind, is easier year eating fast food, why not own someone who seeks financial security at Cashflow friend ,who is an active trader, more. They create a framework for build- real changes in your financial future. than you think. the stock? Over the past ten years all costs to someone who can confidently and learning about his trading system, I Diggs Design McDonalds stock (symbol MCD) has and knowledgeably take measured risks. was able to see the opportunity before http://realty411guide.ning.com GOD BLESS AMERICA Invest In What You Know risen from a low of $15 per share to a This is a simplistic definition but a very me. I now fully expect that investing in high of $95 per share. important one to understand. Without the the markets will be a huge part of my fu- Wanna be a good stock market in- correct mindset, it really doesn’t matter ture financial success in addition to my how much you learn the “how to” of real ing lasting relationships with people who vestor? Keep it simple and start with Continued on pg. 12 Continued on pg. 2 Connect to our virtual network ~ Search for us here: Personal Finance News from the Publishers of Realty411 Magazine - www.Realty411Guide.com have a “Cashflow” mindset. These are For more information about Doug Carv- people who are actively pursuing finan- er’s Pasadena/Burbank Cashflow Meetup cial freedom and see the world full of group, please call: 626.524.2712 CashFlow Express • Page 2
  • 3. publisher’s note Be A Guest at a FREE 6 KEYS FOR Foreclosure Workshop with Lloyd Segal, financial California’s Foreclosure Expert! To learn more about a freedom FREE Foreclosure Workshop near you, please call: NEW BOOK 888.285.0101 Released April 2012! By Linda Pliagas, editor & publisher ForeclosureWorkshop.net E ample, if you are a first-time home veryone buyer (or even an empty nester), be yearns for open to the idea of purchasing a du- abundance plex or other multifamily property and financial instead of a typical single family security, it is a human residence. This way, you can live desire we all share. It is in one unit and rent out the other a motivation ingrained for income. As a landlord myself, in us as part of our I know it’s not easy to live near survival mechanism. tenants, but if you screen your pro- While we all have this spective renters correctly, it will re- in common, only a lim- duce future nightmares. Be smart, ited few ever actually reach true financial let other people pay off your mortgage! security. The statistics can be depressing. You can always save money and then buy According to the Retirement Confidence another home later, after you build a pas- Survey (2006), 53% of Americans have sive income stream. less than $25,000 in retirement savings. Plus, 30% mistakenly believe that they 2. Increase Your Formal AND Finan- will only need $250,000 or less in total cial Education. Did you know that earn- retirement 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 an- tive 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 com- eracy 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 perk to this profession school part-time. It’s never to late! Real Estate was being able to unlock their secrets. I’ve com- piled a list of important It’s also important to keep in mind that universities do NOT Syndication Lawyers guidelines, which were teach people how to Private Placements • Group Investments followed by many of get rich. So on top of LLC/Partnership Agreements • All 50 States those who transformed your formal educa- their mediocre life and tion, start taking class- average paychecks into Linda with real estate mogul & educator es about investing. www.SyndicationLawyers.com Dave Lindahl (www.REmentor.com) extraordinary wealth. Financial classes are These steps are not taught at most adult For information, call: 949-855-8399 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 1. Reduce Your Household Expenses. from top mentors, such as Dave Lindahl. Looking for a Turnkey Rental in Kansas City? In California, we have some of the highest 3. Be an Aggressive/Conservative In- real 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 con- that I have seen many real estate moguls servative, it isn’t. It’s all about planning. make is that they start off their portfolio with a multifamily investment. For ex- Continued on pg. 9 ebsite The W nched Sign Up Online t Lau ut tha Deb Our zine! for our Pocket Maga e-Mail Listings! CASHFLOWCOWS.com CashFlow Express • Page 3
  • 4. Focus vs. Diversification your control over your investments. It’s extremely important to continue to in- crease your financial intelligence in order Diversification is not required if a person knows what they are doing.” So if diver- sification is a protection against ignorance A CPA/Investor’s Analysis to protect yourself. Unfortunately, finan- then when you diversify who’s ignorance cial intelligence is not taught in schools are you protecting yourself from? Your because such a large portion of the popu- ignorance and your financial advisors’ lation, including teachers and politicians, ignorance? Focus, not diversification, is do not have a very high financial IQ. the key to more sophisticated leverage, By Mathew Owens, CPA vesting in non-paper assets (i.e. not mutu- When financial advisors say that an higher returns, and lower risk. www.ocgproperties.com al funds or CDs) allows you to use lever- increase in returns means an increase in The point I am trying to make is that M age as well, which increases your wealth risk, they are right when speaking about if you increase your financial intelligence ost of by making your the paper assets they recommend to inves- about specific asset classes, like real es- what money work harder tors that they make major commissions tate, you will learn how to control your h a s for you. Most finan- on BEFORE showing performance. They own financial security and wealth cre- been cial planners will are wrong when speaking for all assets. ation, instead of relying on some finan- drilled tell you that using Financial advisors are simply salespeople. cial advisor who probably does not know into our heads about in- leverage increases Most people invest in paper assets such as what they are doing. Look at the massive vesting in mutual funds, risk. That is not al- Most financial advisors CDs paying down our ways the case if you mortgage and diversify- have the right finan- cial knowledge to recommend diversification ing is nothing but smoke and mirrors. The financial control the invest- services companies like ment and enable Fidelity, Charles Schwab and financial planners are safety controls on your leverage use. but they do not really diversify. the ones making all of They will also tell the money. The problem you that real estate is that most people have is a risky invest- very little financial edu- ment. The reason savings, stocks, bonds, mutual funds and wealth transfer that just occurred when cation in order to invest for for that is that finan- index funds because they do not want to the market crashed while bailing out the retirement properly so they hand over cial planners typically lack the financial take responsibility and control over their banks (i.e. the top 1% wealthy individuals their money to someone they HOPE will knowledge about how to control real es- financial well being. All they want is to increased their wealth while the middle have the right knowledge base to safely tate and make it profitable. Most finan- turn their money over to an investment class and poor decreased in wealth). This increase their wealth. The problem is cial planners put people into paper assets advisor who hopefully does a good job. happened because most people do not that these investment types are HUGE- where the investor does not have control Out of sight, out of mind. If people want have the financial intelligence to protect LY RISKY. These types of asset classes, and therefore it is hugely risky to use more control, the first thing they need to themselves. paper assets, do not allow the investor leverage. In real estate investments the do is increase their financial intelligence Starting to get financially educated is control. Then during market crashes, all value of the property should not be based and, hopefully increase their financial the key to wealth creation. So get to the most investors can do is watch helplessly on the “opinion” of an appraiser but on controls and leverage ratios. bookstore and start reading. Take classes as their wealth gets whipped out along the income that it produces through rents. Most financial advisors recommend di- on financial intelligence and ways to in- with their financial security. The value of the rental real estate is de- versification but they do not really diver- crease wealth. It is key to your success and If you have more control over your as- pendent on jobs, salaries, demographics, sify. First they only invest your money preserving your wealth so that financial sets then you are not affected as much by local industry, and supply and demand of in one asset class, paper assets. Second, predators (i.e. the government, financial market crashes. For example, if you in- affordable housing. In a housing crash, mutual funds are already diversified in- advisors, and large mutual fund peddling vest in assets like real estate that produce the demand for rental units often goes up, vestments which are invested in a pool companies) do not take all of your wealth cash flow through rental income after all which means rents increase causing the of good and bad stocks which does not away by investing it in asset classes that of your expenses are covered, if the real value of your property to increase. You increase the value or decrease the risk do not allow you any controls over those estate market and stock market crash you can control rental real estate and which of the investments. Professional inves- investments. are still in great shape. While everything geographic areas you invest in unlike pa- tors DO NOT diversify. Warren Buffett is crashing you are still receiving your per assets that allow no control. Finan- put it perfectly when he said, “Diversifi- To contact Mathew Owens, please see rents and do not need to sell the asset. In- cial intelligence is the key to increasing cation is a protection against ignorance. 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, profit- able investments. 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  • 5. Jump Start a New Year of Success Cash vs. Cashflow, pg. 6 If you get nothing from this article, please get this. First, if you ever expect to By Geraldine Barry tic but now as I grow yourself, this is a process it does not hap- create wealth and experience any sort of Founder of SJREI and REI Voice and learn to navigate pen over-night. financial independence while you’re still I this game called life, I young enough to enjoy it, you’ll need to t’s a New Year — time to re- have come to embrace • Lastly, live in the moment — whatever adopt, embrace and implement a residual evaluate, improve and refine this gift that I have been you are doing give it 100% of your atten- mindset. Second, don’t get stopped in our daily habits and actions blessed with every day. tion. Walking the dog, having tea with a your pursuit of residual income by con- for success. Small, incremen- How do I do that? I start friend, working, talking to your children - fusing the value of cash and cashflow. tal changes can reap big rewards my day with a prayer of be present, enjoy that moment. Your fam- Making the transition from accumulator in terms of productivity and busi- gratitude naming the ily and friends will love you for this level to residual-incomer and creating wealth ness opportunities. As a planner myself, I things that I am grateful for — my fam- of attention — very few people can truly can also take some time, but by maintaing understand the significance of establish- ily, my warm cozy home, my friends, a do this. Be wary of electronics they can a focus on cashflow, the time it takes will ing goals to create new outcomes. If we hot cup of tea, a great book, quiet time to be thieves of our time, and our spirit...the be nothing in the remote vicinity of the 40 can break those down into smaller more think, process or write, my warm SJREI things that renew you are not material — year traditional alternative. manageable components we can achieve business community. they are love, companionship, friendship, By appreciating these things, and so family, community, giving back. Matt Theriault is an author, entrepreneur results more quickly. many other seemingly trivial things I am Be brave, do whatever it takes to ac- and host of the fastest growing real estate Here are some things to consider as happier, more content and I realize that complish new results — Make 2012 your investing podcast on iTunes. Visit www. you plan for another year: what I appreciate grows more secure, and best year yet! EpicProfessionals.com for more infor- becomes more defined in my life. Geraldine Barry is founder and president mation and to retrieve his free real estate • If you don’t like things in your life you Try it — I think you will like it too. of SJREI Association the premier educa- investing course How to Do Deals — No have the power to change them by simply tional and networking association for real Money Required. changing yourself — things don’t change, but you can! Any little modification can • There are people who drag us down estate investors in the Bay area. Under make a difference — an introduction of — nay sayers if you will. Remove those Geraldine’s leadership SJREI has grown something new, an exercise routine, a dai- people from your life. If they are your from a half-dozen investors to a vibrant Dream of Retiring Early? T WITH CONFIDENCE ly reading schedule, journaling, or simply family members, show them a new way three chapter organization with over 400 to be by mirroring for them your great investors attending monthly meetings. Join our Facebook bonding with your family. new attitude. My Dad shared with me In addition to leading SJREI, Geraldine Group and Mingle • How you present yourself to the world (he ran a company, and had a family of is the frequent host of the radio program, with Successful makes a difference, how you look, how six daughters, two sons and a wife!) that Going Beyond Real Estate, a regular Investors who Share E D I AT E C A S H F LOW you speak, how you interact with others, sometimes he survived by “psychologi- who you interact with, what you read, cally absenting himself” from negative guest on the nationally broadcasted NT- DTV, publisher of award winning publica- Your Financial Goals. Share Tips • Post Deals what you spend your time doing. What situations. tion REI Voice Magazine, and producer D iscover the lowest-risk, highest-quality residential investment properties in the Request & Give Referrals is your message to the world? Using sophisticated methodology,youbest investment properties areout, I am here, How do do that? Tune them of the annual Bay Area Real Estate Expo. country. the Post Links • Interact with ready to take on a new challenge an experienced investor and rehabbed beautifully to situations, carefully selected by and I capitulate, get away from secure the Geraldine resides in Silicon Valley, and is Nearly 3,000 members! want to change the best tenants. With competent property management, and instant cashdon’t propel world in a positive people and attitudes that flow, your the proud mother of Colin and Claire, her investment pays worry-free dividends from day one. Remember to be gentle as way... it is your choice. you forward. two children. 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