Greenbook: A Local Guide to Chesapeake Living - Issue 3 | Page 68

accidentally uncovered the magic of
real estate leverage, tax savings, cash
flow, lease/options and the freedom of
being her own boss
“Right now, I’m primarily an investor,” said Patton, a licensed broker
and owner of a 180-agent HYPERLINK "http://www.kw.com/kw/agent/
x256099" Keller William brokerage
in Detroit, Mich. “But I have multiple
streams of income. I have my 55
rental properties — mostly in Pontiac — that bring in around $35,000 a
month. I have my real estate
brokerage. I’m a paid guest speaker.
I flip properties. And I have my
Internet-based training business. I
like having multiple streams of income
because if one shuts down, I can rely
on the others for income.”
She started investing in real estate
in 1986, shortly after she got her real
estate license. Most of the rentals she
buys for between $40,000 and $50,000.
Rents average around $800 to $900
a month. She likes investing in North
Oakland County.
“I am not 100 percent sure yet on my
final goals,” said Patton, a real estate
tycoon who is flourishing in a city
that’s floundering. “I am still learning, growing and having a ball. One
of my personal goals is to have all of
my properties free and clear. I have a
few small mortgages left to pay off.
I could quit now but I am not ready
to do that. I am driven by the deal
and the creativity involved. I really
like the entire business. For instance,
I just bought a majority share of a
Keller Williams office which has 180
agents. It is a bit different than the
investing aspect, but I am teaching
some of my top agents who make
$500,000-plus a year how to invest in
real estate. Learning how to deal with
difficult situations is something that
challenges me and helps me develop
my leadership skills.”
Her secret sauce for success is simple.
“Most people aren’t successful because
they give up,” said Patton, author of
“Investing in Real Estate with Lease
Options and Subject-To” (Wiley, 2005).
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GREENBOOK | SEPTEMBER - OCTOBER 2014

“I don’t accept no for an answer. I also
have a positive outlook. The reason
I’m successful is because of tenacity,
dedication, consistency, integrity —
and hard work. It’s these character
traits — and not brains — that have
enabled me to be successful.”
Asked what she’s learned over the
last 24 years real estate, she said:
“Don’t be greedy. Share in a deal, if
you should. Share in the risk, if you
can. Sell when you have an offer and
it’s
a good profit. Never count on
appreciation. It is a bonus when it
happens.”
Landlord Nation
Name: Jim Ferebee
Hometown: Louisville, Kentucky
Net worth: $2 million
Drives: 2005 Ford Focus
Owns: 25 rentals
Goal: 50 rentals
“Landlords grow rich in their sleep.”
John Stuart Mill
After 24 years of working for the
Ford Motor Company, Jim Ferebee
walked away from a $150,000 a year
job to become a full-time real estate
investor. In 2007, Ford offered
Ferebee a $100,000 retirement
buy-out. He took it.
But his wife Pamela thought he was
crazy.
“I love what I do,” said Ferebee, a
jovial millionaire whose enthusiasm
is electrifying. “It doesn’t seem like
work. It’s fun. I really enjoy it.”

Ferebee carries himself. He learned
the short sale trade from Dawn
Bent-Twyford, who taught the
Kentucky native how to locate and
negotiate short sale deals.
He quick-turns most of his short sales
deals for a profit. He keeps a handful
as rentals.
“I don’t take advantage of people,”
said Ferebee. “I take care of people.
Take care of your clients and good
things will happen for you.”
On one deal, he made $90,000 profit.
The property, however, had a $53,000
IRS tax lien on it. Ferebee paid the
tax lien off so the seller wouldn’t get
stuck with the bill.
“It was the right thing to do,” said Ferebee. “I still made money on the deal.
The funny thing is, two months later
the seller referred two new customers
to me. I made an additional $65,000.”
“I’m a modest guy,” said Ferebee,
who drives a 2005 Ford Focus. “I don’t
require a lot of flash. I was never like
that. I still live in the same house I
bought in 1993.”
“Last week, I paid off my mother-inlaw’s house,” he said. “My wife Pam
said she was having trouble with her
bills. So I got cashier’s check for the
payoff for her house. My wife took her
to lunch and gave her the check. They
were all in tears.”

Now folks around Louisville, Ky., call
Ferebee “Big Money Jim.”

Top 10 U.S. Real Estate Billionaires
Real estate investing has created
quite a few U.S. billionaires too,
according to Forbes. Here’s a list of
the Top 10 real estate tycoons in the
United States. The world’s leading
real estate billionaire lives in Hong
Kong. Ranked 27th on the Forbes
2013 billionaire list, Thomas and
Raymond Kwok topped the list for
real estate investing, with net worth
of $20 billion.

Big Money Jim got his nickname
because he closes a lot of short sales
in Louisville. Since 2006, Ferebee had
closed 550 deals. He’s a millionaire
now. But you wouldn’t know by how

Did you verify somehow that these are
best-selling?

The first year after leaving Ford,
Ferebee pulled in $400,000 from real
estate investing. Last year, he hauled
in nearly $500,000 in profit.