Ranked #3 Fastest Growing Company In 2011!

Real Estate Investments & World-Class Property Management

HoW To:
Earn safe, secure Returns By Buying Investment Properties The Right Way
ExclusivE intERviEw hosted by Edwin Kelly of Equity Trust Company, with Special Guest Expert, Alex Sifakis of Jacksonville Wealth Builders

What Youll learn:

3 Things You Must Look For Before You Buy An Investment Property 2 Key Indicators That Make A Market A Real Estate Goldmine The #1 Most Important Real Estate Teammate You Must Have On Your Team

Audio CD Included Inside

Jacksonville Wealth Builders

(904) 677-6777

www.JacksonvilleWealthBuilders.com

Ranked #3 Fastest Growing Company In 2011!

Welcome To The Jacksonville Wealth Builders Program!

Simply put, the Team behind the Jacksonville Wealth Builders program is the reason why our clients rave about their rental property investing experience and continue to buy hundreds of cash flow properties each year in our program. Our clients rely on the Jacksonville Wealth Builders Team to build and manage their real estate portfolio for them. Our Team handles every part of each investment from the property acquisition, financing, property renovation, tenant placement and even property management for our clientsand its all under one roof.
the Jacksonville wealth Builders team

That means theres one number to call for questions, comments, or concerns about your real estate portfolio. Our clients love the fact that we practice what we preach. Our Team has bought over 270 investment properties in Jacksonville, FL and we continue to hold rental properties in the exact same neighborhoods as our clients. Our Team is focused on the long-term success of our clients. Because we handle all aspects of the investments, we aim to build relationships that will last 5 years, 10 years, or even 30 years or longer as our clients enjoy their passive income streams through rental property investing. We serve clients in 6 countries and 18 states by providing passive income streams through real estate to help our clients achieve their financial goals and, ultimately, peace of mind.

the Jacksonville wealth Builders team speaks to crowds of up to 1,000 investors from all across the country

the Jacksonville wealth Builders team receiving the award for the #3 Fastest Growing company in northeast Florida in 2011

the Jacksonville wealth Builders team volunteering at Habitat for Humanity

Meet The Jacksonville Wealth Builders Team:

Gregg Cohen Chief Executive Officer

Adam Rigel Chief Financial Officer

Alex Sifakis President

(904) 677-6777

Director of Business Development

Adam Eiseman

Director of Acquisitions

Mike Smith

Jacksonville Wealth Builders

www.JacksonvilleWealthBuilders.com

Ranked #3 Fastest Growing Company In 2011!

1. Open Audio CD Immediately! 2. Put It By Your Front Door 3. Bring it with you on your next trip out so you can listen in your car!

Meet The Jacksonville Wealth Builders Team:

Director Of Property Management

Mike Stetson

Lauren Traxler
Investor Relations

Investment Advisor

Tim Delp

Xavier Skipper
Property Manager

Kasandra Joyner
Acquisitions Coordinator

Property Maintenance Coordinator

Nick Schkrutz

Project Manager

John Hunt

Investment Advisor

Ashley Riedel

Closing Coordinator

Ro Espinosa

Iris Bargeron
Accountant

Eric Shiendling
Project Manager

Investor Coordinator

Canitha Raynor

Jacksonville Wealth Builders

(904) 677-6777

www.JacksonvilleWealthBuilders.com

Ranked #3 Fastest Growing Company In 2011!

How To Earn Safe, Secure Returns By Buying Investment Properties The Right Way
Hosted by Edwin Kelly of Equity Trust Company, with Special Guest Expert, Alex Sifakis of Jacksonville Wealth Builders
Edwin Kelly: Well hello everybody, its Edwin Kelly, Director of Education with the Equity University and affiliate of Equity Trust Company, and welcome to this program. I have a special guest speaker here that Im going to introduce in just a second but what were going to be talking about is the right way to buy properties in an IRA. When I talk about the right way to buy property, you know there are a lot of different ways that you could choose to do things. One way is you could choose to do things completely on your own, go out find the properties, estimate the proper purchase price, rehab cost, figure out what rent and what the after repair value is, and then create an exit strategy. Thats one way you can do it. Theres another way that has come up and is an opportunity for investors today, and that is to buy what I refer to as a more passive type of real estate investments. The way that works is that there are investors out there who have become so skilled that they realize that they can purchase properties, do all the rehab and put the tenants in it, because theyve already done that for themselves, and allow someone to participate in the transaction. So what I decided to do, because this is something that is a real opportunity today, I dont know that it was an opportunity 5 years ago with real estate prices where they were, but its an opportunity today to leverage other peoples expertise. However, the question is if youre thinking about buying real estate on your own or through another person or investor, incorporating other people into the equation, what are some of the things you need to consider when doing that? Well thats what this training program is going to be all about, and in fact I have another couple coming up on the very same topic. Just so you know: there will be no solicitation of any kind; this session is for educational purposes only, and that is exactly what this disclosure says. I will not be giving any investment advice, tax advice, or legal advice and neither is my guest expert or anyone form Equity Trust Company. The other thing that I will say is that because we decide to incorporate experts and people who are really skilled investors on some of these programs. They may not share the same views or opinions as Equity Trust and thats okay by me because the more access to information and ideas that I have, the better my portfolio does, the better investor I become. So just be aware of that as well. So now lets get on to the good stuff. So Alex, first of all thank you for joining me tonight. Alex Sifakis: No problem, thanks for having me, Edwin. I appreciate the opportunity. EK: Im so glad youre here and Im really excited about this because as I said, this is a huge opportunity for people to invest in the real estate market right now in 2011 and 2012, and we think over the next couple of years. And so, one of the reasons why I invited Alex to be a participant in this program is that Im always looking for are people who are really making money in their areas of expertise. That is one of the things I can share with you about Alex, is that there are a lot of people out there who sell a course or talk about something but in terms of their actual ability to generate consistent profits, that sometimes is questionable. So one of the things Im looking for are real people doing real deals, making real money, and Alex is one of those folks, so I asked him to participate in this program. As it turns out, Alex is also going to be a key participant in our networking conference down in New Orleans in September, and well talk about that more in the end, but just a quick background on Alex: he started in real estate investing back in 2006 so hes been at this for about 5-5 years, and in that time hes participated in 270 different real estate deals. Thats important because if youre thinking about somebodys area of expertise, to do that many deals, you know theyre making money because if you werent making money, quite frankly, one or two deals could put you out of business. So thats important, and theyre on track right now to do 120 real
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Client Success Stories

My property was rented out weeks before i closed on my loan AnD for a considerably higher amount than anticipated. its now cash flowing well over $400 a month in nEt income and the Jacksonville wealth Builders team has exceeded my expectations. - Brian Doan - Centreville, VA

Noah & Angela Cosby San Diego, CA

Michael Klink - Jacksonville, FL

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Jacksonville Wealth Builders

Ranked #3 Fastest Growing Company In 2011!

estate investment deals in the year 2011. So this is somebody who definitely knows the business, he understands real estate investing, and best of all hes got a great personality and hes a whole lot of fun, which is one of the reasons why I like spending time with him. So Alex, without further adieu, Im just going to turn it over to you and let you take it away. AS: Thanks a lot Edwin, I appreciate the introduction, especially the comment about my great personality, I like working with you too. Alright guys, well I appreciate everyone coming on to listen to me talk today about an awesome opportunity in real estate today, and how you can do real estate without spending a lot of your time on it. And you can buy houses in your IRA and get amazing returns from that, and Im going to talk about that opportunity today. First I want to give you a little background on myself and my company: my name is Alex Sifakis, Im with Progress Home Buyers and Jacksonville Wealth Builders, those are my two companies. We started the company back in 2006, like Edwin said, we built it up from a company that I started with a college friend of mine to an office of 12 full time employees, four full time contracting crews. At any point in time we are working with 30-50 people in my business. Weve done over 270 real estate deals over the past five and half years, and we have a goal of 120 houses sold in 2011, and we are on pace to hit that goal. Thats 10 houses a month, thatd be awesome, Im real excited to hit that goal this year. We are national speakers and real estate coaches; we travel around the country teaching people how to do this business, how to buy, fix and sell homes. And we have investors in over 16 different states and 5 different countries, so weve really grown our business from one that was very locally based in Jacksonville, FL to all over the entire country and the entire world, which has been great. Theres a picture of my office on the left there, nice little modest office in Florida. And my team: the guys in the red shirts are some of my teammates. The rest of them are investors who come on these wealth building tours that we have that Im going to be talking about a little bit later. So Im going to assume for the purpose of this instruction, that most of you arent active real estate investors. If some of you are active real estate investors thats great, this information will still apply to you. But Im assuming that most of the people out there are people that have jobs and are looking for ways to make the money that theyve made work for them. So you have money in an IRA and you want to be earning a great return on this so you can retire later on, you know, build your retirement. Thats what real estate today can do for you, and Im going to talk about exactly how that is and why now is such an amazing time to be buying properties. Im going to tell you a little story first. This is me, these pictures that you see here are me back when I started the company. I was doing everything in my company. On the left there you can see I had just come home from checking out a bunch of properties, Id been crawling under houses, Im filthy (my dog Triscuit on the right there, roommates dog on the left). So Im filthy, Im sweaty, Im dirty, Ive been working in the field all day. The other picture on the right Edwin what do you think Im doing there? EK: Im almost afraid to venture to guess knowing you the way I do. AS: Im scraping dog poop off my hands. Thats what Im doing. It luckily wasnt on my shirt, just my pants and my hands. What happened is I was out there checking out houses and I crawled under a house because thats what you have to do when youre checking out houses if you want to do it right, and I put my hand and crawled right through a whole bunch of dog poop. Not fun. And the reason Im telling you this is because building a real estate business isnt easy, and when I was in building the business I was in it, I was doing it everyday; it was my full-time job. And now Ive gotten it to the point where I have a team around me that is doing the business and I dont have to do everything, I dont check out properties anymore, I dont crawl under houses. I built a team that does that stuff for me.

Client Success Stories

Jacksonville wealth Builders arranged all our flights and hotel so that my wife and i can inspect the property and understand all the ins and outs. the whole process made us know right away that this is the right investment opportunity for us. now all i need to do is wait for my passive income to come in. - Ken Luu & Yining Wu - Laguna Hills, CA

Jacksonville Wealth Builders

(904) 677-6777

www.JacksonvilleWealthBuilders.com

Ranked #3 Fastest Growing Company In 2011!

This is very important because for those of you who arent active real estate investors who have a job, or who dont want to be crawling under houses or sticking your hand in dog poop, then what you need to focus on is not how to actually buy the properties but how to find a team that will help you acquire properties and get the amazing returns you can get today without you having to actively do it. And thats what were going to talk about. Theres a picture of my team, thats a bunch of the guys that work for me and then Jeanne Lybecker whos in the middle right, is one of our investors whos bought properties from us. So thats what Ive done: Ive taken myself out of the day-to-day activities of doing the business and built a team that does it for me. So today, what are we going to talk about? First thing today is why real estate is a cant miss opportunity. It literally is a cant miss opportunity because you know a lot of people will tell you Oh the real estate market is horrible, prices are falling, prices are still going to go down. Im going to tell you why none of that matters if youre buying the right properties. Im going to talk about three characteristics that properties you buy must have if you want it to be a successful investment and two key indicators that let you pick the best market to invest in, and how you can identify those markets. And your must-have teammates; the people that you need to have in order to be successful working in real estate and how you can find them. And then, how to buy multiple properties using less than 3 hours a month of your time. You can get some amazing returns using very minimal time. Alright, on the right there some pictures of houses that weve bought and sold. Those are the kind of houses that make great investments and Im going to talk about that a little bit later. Edwin I know youre seeing this right? EK: Absolutely. AS: Absolutely. Everyone has heard this at one point or another, and its true. The statistics came out a couple of years ago where

Client Success Stories

Alan & Hanh Paradise - St. Louis, MO

somebody did some research and found out that 90% of millionaires are millionaires because of real estate. 90%. Nine out of every ten millionaires are millionaires just because of real estate. Thats a pretty strong indicator that real estate is a reliable avenue to achieving wealth. And in the past 5 years real estate has gotten a bad rep because its fallen a bunch and the market went sky high and then dropped off and its hurt a lot of people. But that doesnt eliminate the underlying reasons why real estate is the best way to achieving long term wealth. And as you can see, 90% of millionaires are millionaires because of real estate; probably a good thing to be in. Now why is that? Why is it that 90% of millionaires are millionaires because of real estate? Because of 2 key fundamentals to real estate: over time rents are going to go up and properties are going to appreciate. It happens with inflation and actually normally itll even go more than inflation. So rents will go up and properties will appreciate faster than inflation. And this is going to happen. Now if you bought a property 5 years ago it might not appreciate to more than what you bought it for in 10, 20, 30 years but over time this is going to happen. Now, just because thats going to happen doesnt mean you should rely on
(904) 677-6777

it. The great thing about todays real estate market is because you dont have to buy hoping that rents are going to go up or hoping that properties are going to appreciate. And actually, you should not be buying counting on those two things. What you want to be doing in todays market, and what is possible to do in todays market, just because of the way real estate has fallen so much recently, is that you want to buy a property that will pay you every month even if property values never go up and rents never increase. Property values could drop and it would still make your investment a good investment if that property is rented out and its paying you every month. Tried and true. Heres a case study of a property that we sold to an investor in Jacksonville, FL just to show you the amazing returns that are available in todays market. This is a property that 5 years ago probably sold for $140,000. Today we sold it to an investor for $80,000. Anyways, this property on 6751 Peter Rabbit Dr we sold for $80,600, it rents out for $1220. Its a 5 bedroom/2 bath, a little under 1700 square foot house. And it doesnt look like much right? Its not that pretty of a house Edwin would you want to live there?

Jacksonville Wealth Builders

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Ranked #3 Fastest Growing Company In 2011!

EK: I would say that my wife would probably not allow me to. AS: I dont think so, probably not. And the thing is I wouldnt want to live there. And as an investor you need to get yourself out of the mindset of saying that house is pretty ugly, I dont want that. It doesnt matter what it looks like, it matters what its paying you, and this property pays you 12.7% NET cash on cash return. So thats after you pay all your expenses, your taxes, your insurance, your property management, all that youre making 12.7% on this property without doing anything thats 3 hours a month. These are the kind of deals that are available in todays market. EK: Hey Alex, could I ask you a quick question about the rent? AS: Absolutely. EK: Ok, well you knew I was going to even if you said no. Heres a question for you, because I deal in investments myself, and different areas and so Im not in Jacksonville so looking at that house and not being from that area, I would look at that and say Wow, $1220 seems awfully expensive for that house. So I have a couple of questions around that. First of all, what is it that justifies it? Are you marketing it a certain way? Is that just what fair market rents are or something like that in that particular neighborhood? How do you generate $1220 a month on that property in Jacksonville, FL? AS: Well the great thing, and Ill talk about this when I talk about the market a little bit later, is this is the kind of market you want to look for. In Jacksonville rents are much higher than they are compared to property prices in the rest of the country. And there are some underlying fundamentals that make that the case that Im going to talk about, but yes that is market rent for that property. And it might be rented for $20-50 over market rent; we do
Jacksonville Wealth Builders

get a little bit premium rent because of our property management company but that is pretty much market rent for that type of property in Jacksonville.

have property characteristics that you want to look for in buying a cash flowing property in todays market. And you know what, I didnt actually explain the whole process of what we do and what you should be lookEK: Alright, excellent. ing for yet, so Im going to step back and do that for a second. Being a passive investor, AS: Great question, you set me up well for what you want to look for in a teammate is the market part there. someone who will find a property, buy it, fix it up, place a tenant in it, handle the property management, and then sell it to you; where you dont have to do anything. So its a turnkey package where Adam Wolbarst - Sunnyside, NY everything is done for you, all you have to do is purchase the property and collect a cash flow check every month. Thats the i have always invested in kind of framework Im working stocks, mutual funds, and trawith when Im talking about ditional methods, but when i these things right now. heard the Jacksonville wealth Builders model, i thought it was So when youre looking for a too good to be true. After comproperty to buy from a turnpleting my 1st deal with the key property seller, like myself JwB team, it was just too good! and some other companies My property pays me over $530 out there, these are the things a month and i plan on buying 1 you want to look for. First thing a year with them over the next is a maximum rent multiplier 10 years. thank you so much of 100. This is a maximum rent Jacksonville wealth Builders! multiplier, and what I mean by

Client Success Stories

- Adam Wolbarst

EK: I didnt mean to, you know it was a legitimate question. AS: So these are the kind of deals that are available in todays market, and I hope that excites you, because thats a 12.7% NET cash on cash return, not accounting for rent increases and not accounting for property appreciation; that property is going to yield you way more than 12.7% in the long run, in my opinion. Because like I said, over time properties are going to appreciate, rents are going to go up. You dont want to count on that, but you can plan on that happening. So 12.7% NET cash on cash return is amazing. So now Im going to talk about the must(904) 677-6777

that is if you take the rent and you multiply that by 100 that is the most you would want to pay for that property this insures you are getting a great return. The lower the rent multiplier on your property the higher your return is going to be. For instance if we work with round numbers and take a property that rents out for $1000 I would tell you that the most you should pay for that property is $100,000. Thats going to yield you around an 8% cash-on-cash return. Now that property I showed you earlier on Peter Rabbit was at a 66 rent multiplier and most of our properties sell somewhere between 80-85 multiplier. So you can get better than 100 in todays market, I would say 100 is the max that you want to go to, and you can shoot lower than that, somewhere around 80-85. You want the property to be in a blue-collar neighborhood, you dont want it to be in a
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Ranked #3 Fastest Growing Company In 2011!

war zone, and you dont want it to be in a really nice area and Im going to explain why. First of all, war zones, while you might be able to get a little bit higher returns, youre greatly limiting your exit strategies on the property because youre probably never going to be able to sell it. You think youre going to get higher returns, if youre buying property in an area that is pretty bad youre going to have way more maintenance and repairs because people are going to break into the property, people are going to steal things, and youre not going to have as good quality a tenant whos going to mess up your property, whos not going to pay you rent. So youre going to end up with a lot more problems, and probably worse return, and you have less exit strategies for the property, if youre buying in a war zone. Now if youre buying in a really nice area, whats going to happen is youre not going to be able to hit that rent multiplier. Youre multiplier will be much higher, like 120-130 or 200 depending on what neighborhood youre in and that means your return is going to go way down. Its not worth it to get a much higher rent multiplier and have your returns go way down just to be in a little bit nicer area which isnt going to yield you any more return. So what we recommend is being in a blue-collar neighborhood. Somewhere that people have everyday jobs, theyre fireman, theyre policemen, theyre teachers, theyre people who work in the factory across the street. Good blue-collar neighborhoods dont have a lot of crime, good, most of the time older stock houses built in the 50s to the 70s and 80s that yield great rents and you can still get at low prices. So thats what youre looking for in an ideal neighborhood. The next thing is you want to have the next four main systems of the property upgraded. So the four main systems are: the roof, the plumbing, the electric, and the heating and cooling, whatever it is and wherever youre buying the property. Down in Florida, its an A/C unit, a heat pump. So its important to go have these four main systems and Ill go over them again; its the roof, the plumbing, the electric, and the heating and cooling, upgraded. Because these are the things that are going to cost the most if they breakdown, theyre going to be the biggest cost to your maintenance which are going to lower your repairs. On all of our houses we make sure that they have a minimum of 10 years of life left on them so our investors dont have those big expenses, and thats something you should be looking for. When these teammates that youre working with, these companies that are renovating and renting out these properties for you, you want to make sure they know what theyre doing on the renovation side and that the four main systems are upgraded. Cosmetically the house has to be in great, good shape to rent out so its attractive, but it doesnt have to be brand new because it is a rental, but it has to be in good shape, and you want to make sure that you have those four main systems upgraded. The two key indicators to picking the best market. So you know what youre looking for in the property, now where do you want to buy? Because that ideal property that I talked about could be anywhere; it could be in California well actually it couldnt be in California because rents are too high there it could be in Jacksonville, could be in Tennessee, it could be in Indiana, wherever it is. How do you figure out what market you want to buy in? Well in my opinion, Im in Jacksonville, FL, I think Jacksonville is the best market bar none for buying properties. And Im going to talk about the fundamentals of Jacksonville later you can apply to all markets to make your own decision on where you want to be buying. I said two key indicators, but I really put four up here. The first three are all the same thing: high cash flow. Thats what you want to be basing your main decision on, thats where you should be basing your main decision is on the cash flow of the property. What return are you getting? Thats 1, 1a, and 1b.

Client Success Stories

Your response today is the type of service that has impressed me so far and will keep our partnership going for years to come. under promise and over deliver words to live by. - Dan Reilly - Irvine, CA

i feel so fortunate to be working with a team of such wonderful individuals. it makes investing much more desirable when its a team sport - Jeanne Lybecker - Beaverton, OR

Jacksonville Wealth Builders

(904) 677-6777

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Ranked #3 Fastest Growing Company In 2011!

The next thing you want to be looking at is the potential for appreciation. Because if you have two markets that have the same cash flow, would you want to be buying in an area that has low potential for appreciation or high potential for appreciation? Of course the one that has the potential to be worth more later on is where you want to buy. So that is the second thing you look at, when youre looking for a market. Now like I said, Im going to talk about Jacksonville, because Jacksonville is my market and its where I think is the best place for real estate investing right now. But the fundamentals that Im going to be talking about can be found - well they cant be found in the same quality - but they can be found in other markets, and I want to give you guys some background so you know what youre looking for in that perfect market. So to give you a little background on why Jacksonville is a great market, Im going to talk about San Diego a little bit. Back in July 2010, I taught at a four day boot camp out in San Diego, where it was a bunch of days in the classroom, and then we actually went out to some properties that were being renovated in San Diego to show people how to estimate repairs and to see what they had done to the properties; some case studies on that. And when we were out there we checked out this property on the left, 3536 Madison St, Carlsbad, CA. Edwin you said you had a friend that lived in Carlsbad, right? EK: I did, he spends 3 months a year there. AS: Really? Thats a great area, amazing area. But not so great if youre buying cash flowing properties, and Im going to talk about that. So this property is about 1000 square feet, 3 beds, 2 bath. On the right you see a comparable house in Jacksonville, its 4442 Georgetown Dr, its a little bit bigger 3 bed, 2 bath. Edwin what do you think the main difference between these two houses is? EK: Well, I would have to say the price. AS: The price. Exactly. Thats because California is a very high priced market and a its a big difference in price, and Im going to tell you why thats important. Theres the price difference. That house in Carlsbad, $517,000.
Jacksonville Wealth Builders

That house in Jacksonville, $74,000. Now why is this important? Why should you care? Because cash flow is very dependant on your expenses which is dependant on the price. If you have very high priced home, you are going to have a high mortgage, high taxes, high insurance and youre going to have to put out a lot more money to buy that property. And the more money you have to put out and the more expenses you have, the lower your returns are going to be. And its a fact. So the less you can pay for a property, the better. Now if the rents, technically, if the rents were 8 times as much in Carlsbad as they are in Jacksonville then it could even out and it could be just as great a property, but rents dont go in a linear relationship with home price. As home prices go up, rents do not go up nearly as much, and thats why its better to stay in low price markets when buying properties that are supposed to be producing income for you, where youre trying to get a rate of return. So that house in Carlsbad might rent out for $1500 or $1800, while this house in Jacksonville rents out for $975. So you can see where that big difference will be. So you know you want to look for low prices, the next thing you obviously want to look for is higher rents, because the lower the price and the less youre into it for and the higher the rent, the more money youre going to make. If youre into a property for less money and youre making more money youre returns are obviously going to be bigger. Now in Jacksonville we have some really amazing market fundamentals that give you amazing returns. As you can see the median home price in Jacksonville is about 21% lower than the median home price for the rest of the country. And this is something you want to look for when youre looking for an ideal market to buy cash flowing properties. You want to find one that is below the median price. Now, here is the thing that is different about Jacksonville. Most the time when prices go down, rents go down, prices go up, rents go up. But in Jacksonville the median home price is lower but the median rent is higher, almost 8% higher. This is because of some
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Client Success Stories

Alan & Amy Walker - Jacksonville, FL

Cory Presnick - Jacksonville, FL

Dean & Jamie Larson - Jacksonville, FL

John Finnerty - Fairfax, VA

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Ranked #3 Fastest Growing Company In 2011!

pretty amazing market fundamentals. As you can see, what affects prices? Its always supply and demand. It just so happens that in Jacksonville theres a very high demand for rental properties and a low supply. As you can see, the percentage of residents that rent in Jacksonville is 34% compared to 25% for the rest of Florida. And the average vacancy rate is only 10%, its 16% for the rest of Florida. So what happens is you have greater demand, low supply, which makes prices go up. This is why Jacksonville is such an amazing market, and when youre looking for a market to buy and hold cash flowing properties, this is what you need to be looking for. Edwin did that kind of answer your question from earlier? EK: Yup, that clearly answers it. AS: Yup. Pretty cool stuff. Like I was saying at the beginning there are some amazing opportunities in real estate today that are just ripe for the picking. And so what does this do? High demand, low supply it gives you some amazing cash flow, which is reason 1, 1a, and 1b of what you want to be looking for when youre trying to find a market that will give you cash flowing properties. The next thing, like I talked about, is potential for appreciation. If you have two markets that cash flow the same, how do you pick now? And Ill tell you there are some markets that can give comparable cash flows to Jacksonville. Most of them are in the Midwestern states, low growth Midwestern states like Tennessee, Indianapolis, Iowa, Im sorry Indianapolis is not a state, Indiana, Iowa. And when you pick you want to look for the place thats going to offer the best potential for appreciation. Now, what drives potential for appreciation? Population growth, thats what drives potential for appreciation. Because prices go up obviously when demand goes up. And demand goes up when more people are moving to an area. Now heres a question I like to ask people, is where would you want to live? Would you want to live in the picture on the left, or would you want to live in the picture on the right? Edwin where you going? EK: When we look at houses online, because we look at a lot of properties, we look primarily in Florida. Its funny because when we look at properties here in Ohio, where were based, weve even commented on it, every photo in Ohio shows a cloudy sky and horrible weather and its grey and gloomy. And every picture we look at of properties in Florida, its always blue skies and sunny and green and lush; that alone wants to make you move. AS: And thats the thing, everybody wants to move. And thats why population has been exploding in Florida, and therefore in Jacksonville. Heres just a little stat, while a nation as a whole grew by 9.7%, the number of Sunshine State residents surged 17.6% as 2.8 million people moved here between 2000 and 2010, to Florida. And 2006, 2007 started the worst recession in 80 years and still that many people were moving here because like Edwin said, you got cloudy skies in one place and a sunny beach in the other place, people are going to go to the sunny beach. Also, you want to be looking for things, you know, drivers of economic growth and reasons for people to want to move somewhere. In Jacksonville you have the Jacksonville Jaguars, an NFL team, downtown Jacksonville as you can see is on a river, you have the beach of course, you have things like the Jacksonville town center which has become a shopping destination for people all over Florida and South Georgia where you have Gucci and Prada and the Apple store and all these kind of things that are driving people to come to Jacksonville. You have a great job market, theres 8 fortune 1000 companies here, and thats obviously another driver of population growth is jobs, so you want to be looking for a market that is adding jobs and Jacksonville is. Jacksonville actually has the second lowest unemployment rate of any large city in Florida. The first one is Tallahassee because thats the capital and thats where all the government jobs are and even in a recession people in the government dont lose their jobs. Jacksonville also has the second most government jobs which is why it has the second lowest unemployment rate. Youve got Duval Country Public Schools, the Jacksonville and Florida government, Mayport Naval Station, and NAS Jax. So theres a great base of government jobs here and also a lot of free market potential for job growth. So as you can see here are just some stats, and

Client Success Stories

As an engineer, numbers and spreadsheets are easy for me to understand. i was never a real estate investor and did not know how to invest in real estate, but i understood the possibilities of great rate of returns if done properly. the Jacksonville wealth Builders (JwB) Program provides a line-by-line detailed spreadsheet for each investment. Once you understand each line item in the spreadsheet, the investment sells itself. i acquired two rental properties this year and plan on acquiring one every year with the JwB Program. these rates of returns are set. i do not have to worry about the ups and down of the stock market with my rental properties. thank You JwB! - Joe & Jeng De La Cruz - Jacksonville, FL

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Ranked #3 Fastest Growing Company In 2011!

Client Success Stories

Ken & Carolyn Godwin - Atlanta, GA

you can find these stats on every city online. I pulled the ones on Jacksonville, as you can see on average in Jacksonville appreciated .74% more than the rest of the country in the past 30 years. And .74% might not seem like a lot but when you factor that in over 30 years, in those 30 years because you bought in Jacksonville you could have made an extra $82,000. And thats nothing to sneeze at, I wouldnt mind an extra $82,000 right now. As you can see Im basing this off the fact that if you wouldve bought a $100,000 property in Jacksonville in 1980, and a $100,000 in Anytown, USA, the property in Jacksonville would be worth $82,000 more because of the appreciation. And thats why, when youre looking for a cash flowing market you want somewhere that has that potential for appreciation. Another thing you want to be looking for is people talking about the area, people that are investing in the area because they feel like it has a lot of potential. In Jacksonville an article came out in Personal Real Estate Investor magazine in September 2010; the top ten high turnaround markets. Where they picked the top ten markets that they thought were going to have the best potential for appreciation in the next 5 years. Jacksonville was number four, trailing two cities in California and one in Maryland that have much higher median prices so they arent going to cash flow as well. So for markets that have low median prices Jacksonville was ranked the best market in the nation. And if you Google stuff like real estate studies online, you can find a lot of information about other markets as well, this is the kind of stuff you want to be researching online. So now you know what you want to look for in the properties, and you know what you want to look for in a market, now you have to find your teammates. If you were going to do it yourself, heres a list of the teammates you would have to find and interview and weed through. These are the people that we interviewed and weeded through, and trust me weve used a lot of bad ones over the past 5 years to get to the good, solid teammates we have now. So if you wanted to do it yourself, this is the list of teammates you would have to find. Property management company, title company, realtor, lawyer, CPA, conventional lender, hard money lender, contractors, which
(904) 677-6777

is probably the worst one, because as you know Edwin you do a lot of renovation, good ones are hard to find and normally they dont stay good for too long. So its always a struggle finding new contractors. The list goes on, theres a lot of work in youre looking at doing it yourself. Or you could find one teammate who does everything for you. So you want to find that team who is going to find the property, whos going to fix it up, whos going to place a tenant, whos going to manage it for you, and that way you dont have to do anything. You can spend your time making money on your own job or not working your job and spending time with your family, the kids, going on vacation, that kind of stuff, and have someone working with you to earn you these great returns. So what do you want to look for in this teammate who youre going to find whos going to give you a turnkey cash flowing property solution and do all this stuff for you? The first thing that you want to look for, is you want to have in-house property management. So the company youre going to be dealing with and buying these properties from should have a property management company underneath them that they work with. This is very important and I know this because back in the day, 2 to 3 years ago, I didnt have an inhouse property management company. We were using this business model but we were outsourcing our property management and it didnt work well. There were issues of accountability; who was responsible for what? When was the investor supposed to call the other property management company? When were they supposed to call us? And we didnt always have answers for them; it just didnt work out well. So we went ahead and started our own property management company. And this has made everything so much better for the investor where they have one person to go to for all the answers and one person that theyre relying on. So you really need to look for a company that has in-house property management. And they should be able to know what their key measurables are. By key measurables I mean stuff like vacancy rate, maintenance cost, number of properties under management. When you ask them these sort of things they should be able to spit them out very easily bewww.JacksonvilleWealthBuilders.com

steve and i have been very pleased in all of dealings with Jacksonville wealth Builders. these guys are the real deal! they are honest, hard working people, and if they say they are going to do something, they will. we have done three deals with them (so far), and they have provided us with peace of mind. they hand all the property management services as well. i let them worry about everything on the rental properties, and they call me periodically to keep me posted, or sooner if the need arises. i would highly recommend them! - Lisa Wenzloff - Jacksonville, FL

i just wanted to touch base about the service and the ease of everything on my deal on sharbeth. i encourage anyone interested in investing to GO FOR it and work with these guys. its real estate investing easily done. - Sean Jagroop - Jacksonville, FL
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Ranked #3 Fastest Growing Company In 2011!

cause these are the kind of things they should be tracking and measuring in order to be doing business the right way. Our property management company, right now, just to give you a little case study, has a 3.9% vacancy rate, which is pretty phenomenal, as you saw before Jacksonville has a 10% on average vacancy rate for residential properties. Right now were running at a 3.9% vacancy rate, which is way better than the market and 5.37% average maintenance cost for our investors. So definitely want to look for in-house property management. The second thing is, you want to make sure when youre comparing different companies, say hey do I want to go with company A to handle my turnkey investment or do I want to go with company B? You want to make sure that rate of return is being compared equally, that youre comparing apples to apples because some companies will state it in different ways. So Ive got this nice confusing formula for you here, its actually not that hard. To calculate rate of return, take the purchase price of the property plus your closing costs, add those up and then divide by your yearly rent minus yearly taxes, yearly insurance, and your property management fee. And that will give you what your rate of return is on the property, the rate of return you should be expecting. Now in there you dont see vacancy and you dont see maintenance. We dont calculate that into our return but we tell investors they should expect about 9-10% cost for maintenance and vacancy, and they should escrow that themselves. So they should hold that knowing probably those things are going to come up in the long-run. We dont calculate it into return, its kind of an industry standard where most companies dont, so were using the industry standard formula but we let our investors know that of course if youre buying rental properties you are going to have some vacancy at some point and you are going to have some maintenance at some point. So thats how you should be looking at rate of return when youre comparing companies. The next thing is you need to have teammates that are committed to your success, and this may be hard to figure out but its very easy to think about in principal. This is the way we think about it at Jacksonville Wealth Builders: we need our investors, the people that buy properties off of us to make money, because if they dont make money then theyre not going to be happy and theyre not going to buy more properties. Its a continual cycle where were trying to build long-term relationships with people, make them more money, so theyre happy, so they tell people about us so they buy more properties. Its not a fly by night operation or a one-hitter quitter where I sell you something and Im running and Im never going to talk to you again. And because were committed to our investors success they have a better experience in the long run. What I mean is that you want to have properties that are renovated the right way and taken care of the right way. So just an example, this is a property that we sold on Bethel Ct to an investor where when I went out there to estimate the repairs I didnt include a new roof, because I looked at the roof and I said that roof is good, its a newer roof. And it was a newer roof, but it wasnt put on properly so what happened was I sent my roofer out to the property like I always do to check on it and he went out there and said Alex, when they put on that roof it wasnt permitted and they laid it over a whole bunch of bad wood. So its got to go, its got to come out. So Im saying Oh God, Ron, my roofer, how much is this going to cost? This house is like 2400 square feet so that was an $8300 roof. Now, I had already sold this house to an investor, and told them that it didnt need a new roof. So what we did is we just put on a new roof. It cost me $8300, it cost my investor nothing. And thats what

Client Success Stories

we had a great experience while purchasing our first investment property with Jacksonville wealth Builders. JwB kept in constant contact with us and stayed on top of everything that needed to be done. they were easy to reach when we had questions and very accommodating when life circumstances threw us some curve balls. thanks for making investing so easy :)

we decided to continue to invest with the Jacksonville wealth Builders because there is no effort on our part. we just dealt with the banker, insurance company, and title agents that were set up for us and it was all truly turnkey. i dont have the time to do this myself so they took care of it all for us.

- Sean & Jessica Sutherland - Annandale, VA

- Tom & Leslie Reilly - Lake Mary, FL

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Ranked #3 Fastest Growing Company In 2011!

I mean when I say finding someone who is committed to your success, is we had told them that roof was good, it turned out it wasnt, so we went ahead and replaced it. And thats what you want to look for. Conceptually, one whos going to be committed to your success, theyre not going to nickel and dime you, they want you to be happy, have a good experience, and make good returns to build a long-term relationship. This is extremely important when youre making an investment, when youre purchasing a property. The next thing you should be looking for in your teammates is proof that they are doing business. Edwin had talked about how we have done 270 deals in the past 5 years and were going to be doing 120 deals this year. We have a lot of testimonials from people who have worked with us and who come to our events and buy properties from us, and thats very important. And when youre looking at a company that you want to be doing business with, you want to make sure they have those same things. Heres just some pictures, basically testimonials of investors who bought property from us; thats Sean Jagroop, that was his cash flow check. Brian Doan, Dan Riley, this is my team with Jeanne Lybecker. So these are just people that weve worked with who have made money because of us. And we have no problems with giving references to people who are interested in buying properties from us, and anyone youre working with should be able to do that too and shouldnt have any reservations. If you ask someone for a reference and they cant give it to you, that is a clear red flag. Just a couple more testimonials, this one is from Tony Allegretta: The Jacksonville Wealth Builders team has made it easy for me to run a passive real estate business while working and living out of town. I have purchased three properties from Progress Home Buyers and have referred tons of my friends to their programs. So theres an investor who bought a property from us, ended up buying two more because he had that positive experience, and because we were interested in building that long distance relationship hes referred a lot of people to us. And we have case after case
Jacksonville Wealth Builders

of this. This is Lisa who we sold that house on Bethel Ct to where we put that $8300 roof so I hope shes happy with it! Shes ended up buying three properties from us. Another guy, Scott Reynolds, whose actually bought three properties from us too. So you definitely want to be ale to find testimonials and then to know that these people are doing business. The next thing is the ability to actually meet the team and to see them in action by either going to a live event or going to their office. Now we have a lot of investors that dont even see the properties before they buy them, theyll buy them from afar. But if we have investors who want to come and visit us and want to check out the properties or our office and want to meet our team they can do that. And we actually have live events all over the country. This month were actually going to Boston and New York, and we have an even in Jacksonville too, so people can come, they can check us out and they can meet the team and see that everything is on the up and up. When youre looking for a company that is doing this sort of business, selling these turnkey properties you definitely want to be looking for that too. So I really hope you guys got a lot out of the webinar. I hope you know what youre looking for now when youre looking for these awesome opportunities in real estate today and these great returns. EK: So with that, Alex again, thank you for joining me in this program. For everyone out there, just remember: its your money, now make the most of it. AS: Thanks for having me, Edwin.
Jacksonville wealth Builders offers real estate portfolio management services that generate passive income streams while providing our clients with peace of mind. we serve clients in 6 different countries and 18 different states who have invested in over 270 cash-flowing properties in Jacksonville, Fl since 2006. in 2011, Jacksonville wealth Builders was recognized as the #3 Fastest Growing company in northeast Florida. to speak with an investment Advisor in the Jacksonville wealth Builders Program and discover how you can earn safe, secured, consistent returns through cash-flowing investment properties, call (904) 677-6777.

Client Success Stories

we dont have a lot of time to sit around and look for properties and find places to flip. the great thing that they offer here is the ability to have it all done for you. Everything is taken care of. - Bryan and Jennifer Topscher - Burke, VA

i have always had a passion for Real Estate. i was an active investor. But after working with the Jacksonville wealth Builders team i found that i can be involved in real estate without being involved earning the same returns. now i can spend more of my time doing the things i love with the ones i love. Todd Claus - Jacksonville, FL

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Ranked #3 Fastest Growing Company In 2011!

NoTES:

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Jacksonville Wealth Builders

(904) 677-6777

www.JacksonvilleWealthBuilders.com

Ranked #3 Fastest Growing Company In 2011!

NoTES:

Real Estate Investments & World-Class Property Management

To Speak with an Investment Advisor in the Jacksonville Wealth Builders Program:

Call (904) 677-6777

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