The Resource. Investors Resource Center of America. Editor s Notes: By Robyn Love

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1 January 2008 Investors Resource Center of America The Resource From Seminar to Success with IRCA Support Systems, Investment Techniques & Real Estate Strategies for Today s Entrepreneurs Editor s Notes: By Robyn Love January is a time to examine how many of the resolutions and/or goals of the prior year we kept or accomplished. January is also typically a time to cast new resolutions and/or goals. In January 2007, the IRCA Women s group gathered to create our individual Dream Boards. We shared a few hours going through magazines locating pictures, phrases, or words that represented what each member wanted for herself during the New Year. Each member carefully cut out, positioned, and pasted her findings onto her Dream Board creating a daily visual reminder as to what she is working towards for that year. Here it is January 2008 one year later and it is time to review my and create my Dream Boards. What did I achieve in 2007? I discovered of the 20 pictures, phrases, and words I put onto my Dream Board, I accomplished five (5) of them. 1- March I swam with the dolphins in Mexico (I included a picture of two people swimming with dolphins on my Dream Board), 2- July I went to Costa Rica for a tour (I displayed a picture and the word Costa Rica on my Dream Board), 3- August I spent three (3) weeks in India (I posted pictures of Asia on my Dream Board), 4- September I went on an Alaskan cruise (I attached the word Alaska on my Dream Board), 5- In 2007 I lost 20 pounds (I placed a picture of Beyonce on my Dream Board to represent how I want my body look. I am not there yet, but 20 lbs is a good start). There is a segment in The Secret with John Assaraf about a Dream Board he made. On his Dream Board was a picture of a house he dreamed of owning someday. When John was unpacking from recently moving, he found that Dream Board and discovered he bought the exact house that was in the picture on his Dream Board! As you have observed, goals are important to help us move forward in our lives. Putting pictures to our goals helps us constantly visualize these goal(s) and embed them into our subconscious. Attaching the feeling of having obtained that goal(s) anchors it even more. You would be surprised what you can create when putting your goals in writing and to pictures. My goal for all of you in 2008 is --- prospering from this wave of foreclosures. Create a Dream Board for Attach to your Dream Board contacts with REO brokers, lender, banks etc. Include pictures of houses with you holding the deeds and checks. This time next year, tally how many houses you did acquired in Hey and please, remember to share it with us. Prosperous & Happy New Year Robyn Love We present Jeff Kaller, Mr. Pre-Foreclosure as our guest speaker for January. Jeff Kaller is a visionary, educator, and real estate developer. He has pioneered the most preeminent preforeclosure system in United States, The Art of Pre- Foreclosures ; locating properties behind in payment that the lender has not taken action on. Jeff specializes in a well-kept industry niche. He teaches the real estate secrets of purchasing pre-foreclosure properties while executing real estate theory to actual practice. He takes care of Clients, Lenders, Buyers & Sellers, as well as the many Students that have benefited from his courses. Jeff Kaller is a lifetime Student, and loves to pass along his knowledge to people eager to learn from him. A record of $7 million dollars in properties and a dedicated following of over 9,000 students in less than four years stands testament to his winning strategies

2 Getting Started The Three Friends of Failure By Bill Gatten What is it that prevents so many us from attaining the Success we hope for in getting started in Innovative Real Estate? Is it lack of ambition? Self-consciousness? Is it Fear of Success - If I succeed at this, my life will change, and some of whom I am may be invalidated? Although fear of success is the most cited reason for failure, neither it nor the other above possibilities, are the culprits. One s lack of success in prospering in this business obviously is related to these elemental factors, but in truth, the reason is not with any of them. Simply stated, the reason some fail at getting their fingernail under the lid in this business, is the universal human inclination toward avoidance of Change: the constituents of which are Indecision, Doubt and Procrastination, Failure s best pals. When we acquire something new, we expect it to fit snugly into our lives without creating any discomfort. For example, when buying a new car, we want it to operate just as the old one did. We do not want it to have the keyhole on the left side of the steering column, or to have handlebars instead of a steering wheel. No matter how much these alterations may add to the functionality of the vehicle, we are just not ready for the change. The insidious part of the fear of change is its invisibility. It is a fear that we are not always conscious of, as we would be of, say, the fear of falling or freezing to death. A painless, built-in mechanism called Inaction quite effectively deals with our fear of change. Our mind tells calmly tells us that if we take no action, we cannot fail, and therefore have no need to fear failing. In dealing with our more visible fears, most of us will opt to stay in the shallow end of the pool if we cannot swim. Due to a fear of being eaten, we will go to great lengths to hang our food in a tree versus leaving it in our tent when sleeping in Bear Country. However, when it comes to doing something 2 about the pain of insufficiency, and reaching out for our god-given and well-deserved abundance, we are often more interested in just owning the mechanism for success than we are climbing on it and making it do something. It s my box of Success. I paid for it. I own it. I ll open it when I get around to it. Our species has spent thousands of years centering of ourselves within comfortable reach of all of our human needs, and most of us take our plight for granted, at least until it becomes unbearable. In other words, we will immediately address fears that overtly threaten our physicality; however, when it comes to dealing with fears that are not immediately within our field of vision, we tend to just sit back in denial and hope and wish (and pray) for change to take place on its own. In addition to real estate investing, I conduct workshops during which we sell courses, mentoring services and all the bells and whistles that go with them and, candidly, they are not cheap. So, what percentage of attendees would you suppose pay their hardearned money for the training and materials, knowing without a doubt that they can become very wealthy by working the plan: but never get around to opening the box or reviewing their notes when they get home? Then, of those who do open the box, what percentage would you suppose study the materials? Moreover, of those who study the materials, how many would you think actually make the change in their lives that leads them to abundance? The answer is in Joseph Juran s Law of the Vital Few and the Trivial Many (often confused with Pareto s 80:20 Rule ). That is, In any human endeavor, 20% of the sample (the vital few) will be responsible for having attained 80% of the result, revealing that close to 80% of the participants (the trivial many) did nothing. So, the question then becomes; what is the difference between the two groups? The answer is Procrastination, which is another word for Fear of Change: I m really going to do it, but not just yet: I ll make the Continued Page 4

3 3 The Good, Bad and Pre-Foreclosure By Jeff Kaller Just because the housing market is horrible for some and great for others does not mean there are capital gains opportunities in high-yielding Real Estate Investment Trusts (REITs) for everyone. While the idea of making money is good, foreclosure investing might seem appealing but there is a downside. In many cases, foreclosure buyers are seen as the vultures of the real estate world, profiting from others' misfortunes. "There is well a deserved stigma associated with this from the old school of thought, if done honestly and professionally, the process can be a win-win for both buyer and seller. What is a pre-foreclosure property? It is a house whose owner has gone into default on his or her mortgage payments but one which the lender has yet to repossess. This, according to industry insiders, is the crux of all foreclosure investing. "You are able to leverage an exclusive deal with a motivated seller, before the competition knows about it. For those who like putting real estate deals together, without being a total financial specialist, the pre-foreclosure system maybe the launching for most. However, training is still critical. Trying to figure out someone's financial picture in a few minutes is not the goal. The better real estate training focuses on how to explain why the homeowner selling their house is a good option for you and them. The training involves the important critical step of how to figure out all the costs involved: repairs, selling, commission, insurance, taxes, title, and escrow fees. At that point, you're ready to approach the bank and test the waters to see if that price matches expectations. "If you structure the deal in the right way, the owner gets a fresh start and cash at closing. If there is no action, the house would be foreclosed and his credit would be ruined. Investors get a below-market purchase, and they help a homeowner." Continued Page 4 Mr. Pre-Foreclosure" "How to Make Big Profits Quick with Short Sales" Radisson LAX January 12, :00 a.m. to 5:00 p.m In this one-day seminar, Mr. Pre-Foreclosure Jeff Kaller will teach you: How to consistently locate the huge deals How to Quick Turn to a buyer for a $25,000 profit in 45 days. What to say to a lender to generate a massive discount - every time. How to locate owners of vacated foreclosures. Deals to avoid & ways to make cash on the deals your competitors won t touch. Why it can be better to have lousy credit and NO MONEY in this business! The importance of having your Marketing Plan and an Exit Strategy for each Deal. How to leave your job in 90 days - or less! Come learn from "Mr. Pre-Foreclosure" as he shows you how to make this Investment as easy as 1-2-3! Contact Robyn Love 1 (818) robyn@irca-losangeles.com Radisson LAX 6225 W. Century Blvd. Los Angeles CA MEMBERS FREE (310) NON MEMBERS $49.00

4 4 Cont. from page 2 Getting Started The Three Friends of Failure By Bill Gatten change when I get past this reluctance to alter my comfort level. I ll get to it once my taxes are done, or once I ve watched every TV program and movie ever produced. As the well-known life coach, writer, and professional speaker, Tony Robbins says, You will do it only when the pain of not doing it is greater than the pain of doing it. This is to say that in the absence of pain (unfulfilled need/discomfort) no need for change is recognized. Only when true Need becomes preeminent is change likely to take place. If one is serious about wanting change, the three adversaries to confront are Indecision, Doubt, and Procrastination. You can be sure that when one is present the other two are lurking nearby. Procrastination breeds Doubt, and Doubt is the parent of Indecision. Therefore, it s an absolute fact that Doubt and Indecision soon starve in the absence of Procrastination so to succeed and prosper and to become who you want to be merely do now what you know you have to do eventually. Bill Gatten North American Realty Services, Inc 6520 Platt Avenue #548 West Hill, California Toll Free Local Fax What is your Financial IQ? Learn how to get out of the Rat Race and onto the fast track where your money works for you instead of you working hard for your money. Use this game to practice real world investing with play money. Ca$hflow 101 is an educational board game that teaches accounting, finance, and investing at the same time. It makes learning fun! Come join us Saturday January 26, 2008 BRE Fullerton Apartment Club House 229 E. Commonwealth Ave. Fullerton, CA :00pm It will be a Potluck Call or Beth Dauphinee to confirm your coming and potluck needs daphna.ircawoman@sbcglobal.net Cont. from page 3 The Good, Bad and Pre-Foreclosure By Jeff Kaller The opportunities for those hoping to get into this line of investing have never been better. Foreclosures were up 30% in the third quarter and are nearly double the rate they were a year ago. In fact, August and September had the two highest monthly foreclosure filing totals. P.S. You are really missing out if you have not signed up for my Free Short Sale Course yet, go to The end

5 Record California Foreclosure Activity DATAQUICK Third Quarter Report La Jolla, CA.--Lenders started formal foreclosure proceedings on a record number of California homeowners last quarter, the result of declining home prices, sluggish sales and subprime mortgage distress, a real estate information service reported. A total of 72,571 Notices of Default (NoDs) were filed during the July-to-September period, up 34.5 percent from 53,943 during the previous quarter, and up percent from 27,218 in third-quarter 2006, according to DataQuick Information Systems of La Jolla. Last quarter's default level passed the previous peak of 61,541 reached in first-quarter A low of 12,417 was reached in third-quarter An average of 34,781 NoDs have been filed quarterly since 1992, when DataQuick's NoD statistics begin. "We know now, in emerging detail, that a lot of these loans shouldn't have been made. The issue is whether the real estate market and the economy will digest these over the next year or two, or if housing market distress will bring the economy to its knees. Right now, most California neighborhoods do not have much of a foreclosure problem. But where there is a problem, it's getting nasty," said Marshall Prentice, DataQuick's president. Half the state's default activity is concentrated in 293 zip codes, almost all of which are in the Inland Empire and Central Valley. Grouped together, those zip codes saw year-over-year home price increases that reached 34.0 percent in first quarter Prices peaked in third-quarter 2006 at $399,000. Last quarter's median of $352,250 is 11.7 percent off that peak. In the 1,172 other zip codes, appreciation peaked in second-quarter 2004 at 25.0 percent. Last quarter's median of $575,000 was 2.5 percent below the prior quarter's peak of $590,000. Most of the loans that went into default last quarter were originated between July 2005 and September The median age was 18 months. Loan originations peaked in August The use of adjustable-rate mortgages for primary purchase home loans peaked at 77.8% in May 2005 and has since fallen. Because a residence may be financed with multiple loans, last quarter's 72,751 default notices were recorded on 68,746 different residences. On primary mortgages statewide, homeowners were a median five months behind on their payments when 5 the lender started the default process. The borrowers owed a median $10,914 on a median $344,000 mortgage. On lines of credit, homeowners were a median eight months behind on their payments. Borrowers owed a median $3,355 on a median $66,351 credit line. However the amount of the credit line that was actually in use cannot be determined from public records. The default numbers were a record in 39 of the state's 58 counties. In Los Angeles County it was 63.3 percent of the first-quarter 1996 peak. On a loan-by-loan basis, mortgages were least likely to go into default in San Francisco, Marin and San Mateo counties. The likelihood was highest in Merced, San Joaquin and Riverside counties. While numbers at the zip code level can fluctuate severely, among the zips with the biggest foreclosure problem are Lathrop in San Joaquin County, Perris in Riverside County and Sacramento. Of the homeowners in default, just under half, 45.9 percent, emerge from the foreclosure process by bringing their payments current, refinancing, or selling the home and paying off what they owe. A year ago it was 80.9 percent. The increased portion of homes lost to foreclosure reflects the slow real estate market, as well as the number of homes bought during the height of the market with multiple-loan financing, which makes 'work-outs' difficult. Trustees Deeds recorded, or the actual loss of a home to foreclosure, totaled 24,209 during the third quarter. That is the highest number in DataQuick's statistics, which go back to Last quarter was up 38.7 percent from 17,458 for the previous quarter, and up percent from 3,435 for last year's third quarter. The peak of the prior foreclosure cycle was 15,418 in third-quarter 1996, while the low was 637 in the second quarter of There are 8.4 million houses and condos in the state. Grouped together, foreclosure properties in 293 hardest-hit zip codes resold for 11 percent less than non-foreclosure homes. In the rest of the state foreclosure resales were near or at the price levels of other sold properties, DataQuick reported. Continued Page 6

6 6 Cont. from Page 5 Record California Foreclosure Activity DATAQUICK Third Quarter Report Notices of Default houses and condos County/Region 2006Q3 2007Q3 %Chg Los Angeles 5,565 13, % Orange 1,500 3, % San Diego 2,355 5, % Riverside 3,040 9, % San Bernardino 2,548 7, % Ventura 578 1, % SoCal* 15,676 41, % San Francisco % Alameda 803 2, % Contra Costa 1,012 3, % Santa Clara 670 1, % San Mateo % Marin % Solano 510 1, % Sonoma % Napa % Bay Area 3,797 10, % Santa Cruz % Santa Barbara % San Luis Obispo % Monterey % Coast 587 1, % Sacramento 1,761 4, % San Joaquin 898 2, % Placer % Kern 741 2, % Fresno 789 1, % Madera % Merced 282 1, % Tulare % Yolo % El Dorado % Stanislaus 631 1, % Kings % San Benito % Yuba % Colusa % Sutter % Central Valley 6,410 17, % Mountains* % North California* % Statewide 27,218 72, % * includes additional counties Recorded Trustees Deeds houses and condos County/Region 2006Q3 2007Q3 %Chg Los Angeles 535 3, % Orange 179 1, % San Diego 453 2, % Riverside 478 3, % San Bernardino 232 2, % Ventura % Socal Total* 1,960 13, % San Francisco % Alameda % Contra Costa 119 1, % Santa Clara % San Mateo % Marin % Solano % Sonoma % Napa % Bay Area Total 449 3, % Santa Cruz % Santa Barbara % San Luis Obispo % Monterey % Coast Total % Sacramento 343 2, % San Joaquin 119 1, % Placer % Kern % Fresno % Madera % Merced % Tulare % Yolo % El Dorado % Stanislaus % Kings % San Benito % Yuba % Sutter % Central Valley Tot* 852 6, % Mountains* % North Calif* % Statewide 3,435 24, % * Includes Additional Counties Source: DataQuick Information Systems Copyright 2005 DataQuick Information Systems. All rights reserved.

7 7 Due On Sale Moratorium A due on sale clause is a provision in a mortgage enabling the lender to demand full repayment if the borrower sells the mortgaged property. A moratorium could greatly improve the current market correction.t H U R S D A Y, N O V E M B E R 1, California s real estate crisis could be contained if lenders agreed to a temporary moratorium on due on sale clauses, according to Bruce Norris, a prominent Riverside-based real estate analyst and investor. A due on sale clause allows lenders to foreclose on loans if property ownership is transferred without their approval. But in today s market environment, with record numbers of foreclosures already in process, it is essential that homeowners have the ability to transfer their loans to individuals or investor groups who are in a stronger financial position, Norris said. Otherwise, additional properties will go into foreclosure, exacerbating lender losses while further undermining California real estate prices. To have any chance of averting a record number of foreclosures, Norris said, government agencies and the real estate industry at large must act quickly to avoid lenders taking back this huge glut of foreclosure homes. They also must work even harder to create a new pool of capable buyers to absorb the increasing inventory surplus. Suspending due on sale clauses would allow this to happen. Lenders can also provide immediate market relief by allowing ownership to be transferred on properties currently in the foreclosure process. By temporarily suspending due on sale clauses, Norris said, lenders will be in a safer position because the new buyer will most likely have more money into the deal than the original borrower. Having skin in the game is the best insurance policy a lender can hope for at this point. The lender will also avoid taking back another property and continue to lose even more money. Norris also warned that if lenders continue to embrace due on sale provisions, more than 100,000 California properties will likely be foreclosed on in This will create a historic pile of lender-owned properties that must be sold and will compete against private sellers, Norris said, adding that the number of short sales will also increase. Short sales are transactions where the seller attempts to have the lender cooperate in taking a loss on their loan in an effort to prevent the lender from foreclosing on the property. When you combine all the short sales and lender-owned properties in 2008, combined they will represent one of every three sales in the state!, Norris said. This will create further price damage and involve the owners who once thought they had a safe margin of equity as well as the lenders who made loans to prime borrowers. The lenders will then begin the foreclosure process on a new batch of shocked and dismayed homeowners. More information about Bruce Norris, his research, and his investment seminars are available at More information about the quest to repeal due on sale clauses at The Norris Group 6391 Magnolia Ave Ste. C Riverside CA Off

8 8 CoachING Corner Focus on Your A List One of the most important concepts to understand when seeking success is to focus on what is most important. Many things in life demand your attention. However, if you let everything else get in the way of doing what is most important, you will never achieve the success you desire. Focus is key to success, but you have to make sure you are focusing on the right things. When you are ready for major success, it will take all the focus you can muster. Indeed, it will require obsessive focus for a time. When desiring success, you have to focus only on the A List. We all have lists of what should be done. When you prioritize your list, there will be only a few things that fall on the A List or the most important things that need to be done now list. The A List is where you attention should be. I know you are thinking, Oh, please, how can I focus only on my A List when there are so many other things I need to get done? I did not say focusing on what is most important to you would be simple; I am simply saying that this focus is necessary to achieve what you most desire. I understand that the number of shoulds can be overwhelming, so much so that there are times when you will choose to do nothing or to work on those things that do not advance you toward what you really want in life. Keep in mind that every time you say yes, you are saying no to something else. Do you really want to be saying no to what is most important to you? Make it a priority to carve out time to work on the A List items every day. You have to make what you want most in life your priority! No one has enough time. We each make time. If you want to achieve your goals, you have to make time to focus and work toward them. Having a goal is a good thing, but it will not get you anywhere unless you take action. Action is the key to success, and that action has to be consistent, persistent, and daily. Every time you allow something else to get in the way of taking action toward your goal, you are setting yourself back and allowing someone or something else to steal your dream. Don t do it! Stays focused on what is most important to you and keep your eye on the prize. Are you focusing on what is most important to you? Today, review your A list, or create one, and take action on at least one item on the list. You owe it to yourself to make yourself a priority. QUOTES TO PONDER: We are too busy mopping the floor to turn off the faucet. Anonymous What people say, what people do, and what they say they do are entirely different things. Margaret Meade You must remain focused on your journey to greatness. Les Brown Jack & Julia Kelly MasteringTheMindset.com

9 Calendar of Events JANUARY 2008 Sunday Monday Tuesday Wednesday Thursday Friday Saturday Main Meeting Guest Speaker Jeff Kaller Women s Group IRCA SIG GROUP Presents Jeff Kaller 9:00am to 5:00pm Holiday Martin Luther King, Jr. DAY Ca$hflow 101 in Fullerton, CA It s Choice not Chance that determines your destiny Jean Nidetch February 2008 The future belongs to those who believe in the beauty of their dreams. Eleanor Roosevelt Main Meeting Guest Speaker Bruce Norris Women s Group IRCA SIG GROUP Presents Bruce Norris 8:00am to 4:00pm IRCA SIG GROUP Presents Steve Dexter 8:30am to 5:30pm Presidents Day Leap Year

10 10 YOUR INFO PAGE CONTACT INFORMATION Meetings Are held on the first (1 st ) Tuesday of each month Meeting Begins 7:00 P.M. Appetizers and Networking 6:30 P.M Where Four Points by Sheraton Culver City 5990 Green Valley Circle Culver City, CA (South of Fox Hills Mall) Contact Information Investors Resource Center of America 8335 Winnetka Avenue Winnetka, CA Executive Directors Steve Love IRCA (4722) Robyn Love fax robyn@irca irca-losangeles.com website UPCOMING SEMINARS IN THE LOS ANGELES AREA Jeff Kaller Bruce Norris Steve Dexter Kris Kirschner Mr. Pre-Foreclosure" "How to Make Big Profits Quick with Short Sales" "The Norris Group's California "Only" Investor Intensive" Market Update How to Profit in the Rising Wave of Bank Foreclosures Buying and Selling Houses Live Training Saturday, January 12, :00 a.m. to 5:00 p.m Radisson LAX 6225 W. Century Blvd. Los Angeles CA (310) s FREE Non-s $49.00 Saturday, February 9, :00 a.m. to 4:00 p.m Four Points by Sheraton Culver City 5990 Green Valley Circle Culver City, CA (South of Fox Hills Mall) s $ Non-s $ Saturday, February 16, :30 a.m. to 5:30 p.m. Holiday Inn Long Beach 1133 Atlantic Ave Long Beach, CA s $ Non-s For More Information and Registration, CONTACT ROBYN LOVE 1 (818) Investors Resource Center of America robyn@irca-losangeles.com January 14-18, 2008 San Diego, CA s $ Non-s $2,495.00