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- Another Real Success Story Real Wealth Network Member
Goes From $0 to $20,000/Month
Income in Just 6 Months

By Kathy Fettke,
Real Wealth Network

W

hat three words do you
hear most often when
asked what matters most
in a real estate purchase?
Location, Location, Location….
right? Well, I disagree.

If you bought a home in Stockton, California in
2006, you would be very disappointed in 2009 when
that property was worth 1/4th its value.
What do I think is the most important thing to
consider when buying property?
Market cycles
Back in 2006, we knew that California real estate
was in a frothy bubble. That’s why we advised our
members at Real Wealth Network to SELL California property and exchange it for properties in more
affordable markets.
How did we know it was a bubble? Simple: Affordability. The average person could not afford the
average property in California in 2006, without the
help of crazy s tated-income or negative amortization loans. Of course, those loans would inevitably
adjust and the borrower wouldn’t be able to afford
the higher payment.
At that time, I advised a woman who owned three
properties in Stockton to sell and exchange those
homes for properties in Dallas, Texas. Dallas real
estate was actually undervalued by 26% at the time.
In fact, salaries were increasing much faster than
home prices, unlike California.

She listened to me and sold each Stockton property
for about $420,000 and was able to exchange them for
nine cash flow homes in Dallas.
She had been receiving $1,200 rent on the California
properties and was elated to discover she could get the
same rent on her new properties, and effectively triple
her monthly income! This gave her the extra income
she needed to retire.
Keep in mind that the California properties were
old, in high-crime areas and in need of repair. The
Dallas properties were brand new, in middle class
neighborhoods near high-paying jobs and good
schools.
Just a few years later when the credit crisis hit,
the Stockton properties she sold were worth about
$100,000 each. Instead of losing 1/4th her net worth,
she tripled her monthly income and saved her nest
egg.
Real Wealth Network has been helping thousands
of investors nationwide understand market cycles in
order to avert disaster and build sustainable wealth.
I am concerned that today we may be facing another
bubble in California. Home prices are well above 2006
levels in many California markets (and we KNOW
that was a bubble year), yet salaries have not exceeded
2006 levels.
That’s why, once again, we are advising people to
sell their high-priced properties and exchange them for
high cash flow...

of work. It was a tear down, essentially, but it was still
worth $800,000. (Yes, San Francisco prices…)
Cindy decided to list it this past summer for $1.3
million to see if she’d get an offer. Sure enough, she
and her husband received an ALL-CASH offer for
$1.45 million, and they closed in 10 days!
While this was exciting, it also meant they had 45
days to identify new properties or they would face
enormous capital gains. Fortunately, they had been
attending Real Wealth Network events and listening to
weekly market updates.
At Real Wealth Network, we search the country for
affordable markets that are experiencing both job and
population growth. Once we identify those locations,
we search for the best real estate teams who can provide our members with turnkey properties.
“Turn-key” means the real estate company purchases the property for a discount, renovates it to like-new
condition, places a qualified tenant, and offers onANOTHER RECENT SUCCESS STORY
going property management.
We referred Cindy and her husband to our favorite
One of our members, Cindy, inherited a home in San
turn-key property providers in Indianapolis, Houston,
Francisco that was in poor condition and needed lots
Cincinnati and Jacksonville, FL.
They couldn’t believe they could
exchange their ONE San Francisco
property for TWENTY cash flow
properties… and their monthly
passive income went from zero to
$20,000 per month!
PLEASE NOTE: Not all companies
who say they are turn-key really are.
In fact, most never make it through
our rigid screening process. Whether
you have a property to exchange or
you simply want to get started as
a real estate investor, we have the
resources you need.
You will have access to our weekly
market updates, strategy sessions,
live events, and property tours.
And most importantly, we would be
happy to refer you to our member’s
favorite turn-key property providers
in Dallas, Houston, Chicago, Indianapolis, Cincinnati, Pittsburgh, Jacksonville, Tampa, and in the booming
oil state of North Dakota.
Simply visit www.RealWealthNetwork.
com to get your FREE membership.