Bernard Zick's

REIT REAL ESTATE REPORT

December 2003

The REIT Real Estate Report is published about once a month. It is intended to serve no special or worthwhile purpose.  It is just my way of telling you what is going on in the world of real estate education.  My only goal is that I don't get sued and you are entertained a bit.  For an e-newsletter of merit, our next issue of Advice for the Impatient Investor will be out the first week of January.

Editors: Bernard "Barney" Zick bernard@zick.com, Karen Zick and Amy McIntee

Who Started all this Real Estate Education?

Wade Cook Students Get a Second Chance

My Website is Working Better Than Expected

One Time Only!!! How to Buy and Sell Apartments and Other Income Properties Boot Camp

A Success Story: He Made $26,900 Plus $250/month for One Year Within 30 Days After Getting our Hidden Profits Course!

Sea & Ski

"Barney, how do you keep from burning out?"

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This “history” is guaranteed not to change your life!  But have you ever wondered how all this real estate education started?  I do get asked now and then, so here is the second installment of a short series…

Last month I started detailing the history of the crazy real estate education business…mostly about Richard R. Reno.

William Nickerson was a real one-of-a-kind "no-one-to-tell-him-how" investor.  He took a few hundred bucks and, at the first level, he ran it in to a million.  Then he did the smart thing...he wrote a book about it.  His technique, mainly, was to buy huge houses, which seemed to be around a lot in the 1950s, and divide them in to as many apartments as he could.

Nickerson was not the seminar sort.  Maybe in the beginning, but later on, a member of his staff, Al Lowry, started doing the seminars.  They did “previews” several nights a week and a two-day on the weekends. In the 1970s, really the only games in town were Creative Real Estate Magazine seminars (mostly for agents) and Nickerson for investors.

The next player to enter was Mark O. Haroldsen.  He was a stock broker out of Salt Lake City who read Nickerson’s book.  At an early age, around 30, he became a millionaire mostly buying low income properties and apartments and increasing the income.

He also read a small book called “The Lazy Man’s Way to Riches” which was about direct marketing.  A guy named Joe Karbo was making a million a year writing great ads, one page full of copy ads that sold books in magazines.  In "Lazy Man’s" he told his ad writing secrets.  Mark read this and wrote “How to Wake Up the Financial Genius Inside You” which was his version of what Nickerson had done.

Every time he ran the ad he sold more and more.  He had a mail in device for his self published book that got him the names of the buyers.

He wrote all these folks and offered a Creative Financing Newsletter.  In a few weeks he had over $100,000 in envelopes on his kitchen table!  He soon had his first investors conference at Alta.  I know, because I was there.  I was the only outside speaker.  He had Cowan (his property buyer), a mentor (who I believe was Blackwell or some similar name), himself, me and Brother Bob Harrington for humor.

By the way, his property buyer had taken my Creative Financing (then called Creative Formulas) Boot Camp the previous year. That's how I got invited.

Before long, Mark was doing annual conventions in Orlando every January sponsored by his magazine.  Oh yes, his newsletter turned into a great magazine.  There soon were over 1000 people at these events and many of the people that are a part of the history of this business got their start there. (Mark sold the magazine to Ron LeGrand about six years ago. Ron's firm, SDI, let it fold).

Mark did events on in to the 1980s.  When the tax laws changed, he changed to business events.  Problem was, he hired a man to be president of the company and that guy did not follow the law and brought the company down.  This was much to Mark’s surprise.  Mark was not one to bend the rules on refunds or advertising.  It cost him millions when it happened in the 90s.  The big loss was in part because Mark had several other companies in the same group, under the same corporate charter, that got closed too.

Thank heaven, Mark had been financially smart and had several other companies to keep him in cash.  I see him from time to time now.  He mostly does very large hard money loans to big players.  When he comes through Houston he will give me a call.  I don’t know if he still has a place in Salt Lake City, but he has a great place in Hawaii. He is slim, healthy and enjoying life.

But, we have gotten ahead of ourselves.  Back when I met Mark, I met Bob Allen.  But that is a story for next month.  All in all, Reno was the inventor of broker creativity, Nickerson, the grandfather of the investor movement, and Haroldsen was the inventor, if that is the right word, of the real estate investor convention.

But the fight between Bob Allen and Al Lowry is the most interesting story yet.

More next month...

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I had a student forward an email he had received because he is on the “I never got the course I paid for from Wade Cook” list.  I tracked down the folks that got the list, a firm called Optionetics.  I talked to one of the top guys to see what the story was.  I wanted to find out for myself if they were cut of the same cloth as Wade.

They said they were a little shocked when they went to the sale.  On the way into the bankruptcy court, a group of State Attorney Generals asked them the same thing.  Since Wade was mostly selling stock market advice, this firm is a natural to take over the unfulfilled promise of the Cook business.

I checked them out with a couple of my students that have been through their programs.  I would suggest that if you get the chance to go to one of their events, or participate in what they offer, do it.  They have a good reputation in the education business and pride themselves on delivering what they promise.

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Awhile back I asked for your input.  Where can I (or you) get a good pre-fab website for less than an arm and a leg.  I wanted to have a place to send my bargain sellers when they logged onto www.zickinvestmentproperties.com.  The prices ranged from thousands with several promoters, like Lou Brown, to a very reasonable price at Investor Pro.  I signed up.

Not only have I gotten some leads there, I've found a new use for the site.  Last week I was talking to a motivated seller.  It was just taking too long.  Yes, they wanted a deal but they were giving me the ‘round the bush’ treatment on key question.  So I said, “I am going out of town for two days.  If you are serious, go to my web site and fill out the Quick Response form.  With that in hand, I can make you a written offer."  Not only was it a time saver, it got me the answers to some very important questions, like, "How much are you behind on your loan?"  The loan balance information they provided on the form told me what I needed to know to make the offer.  At the rate we were going, I don’t know if I ever would have convinced them to open up.

I have arranged a $50 off discount coupon to be sent to you just for checking out their pre-fab and “sold in nine days” sites.  For a few hundred dollars you can be up in running in a couple of days and the monthly fee is less than the cost of one newspaper ad in a major paper…make that most any paper!  Go to InvestorPro.com/zick to get the discount and see the site.  Or look at the website first.  www.zickinvestmentproperties.com

If you are new to the business, it is much cheaper than doing a brochure and a web site is open for business 24 hours a day!

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By request, we are going to do ONE Boot Camp on the subject of "How to Buy and Sell Apartments and Other Income Properties" on Saturday and Sunday, January 17th and 18th in Houston.  It will be too meaty for some of you.  This will be a number crunching, left-brain burner and I am bringing in an industry expert for the first day of analytical study.

The first day we will discuss valuing apartments.  We will tear apart the seven different ways value and return are measured, telling you the strengths and weakness of each, with lots of number examples.  This is not for the brain-dead or math-frightened.  We plan to deliver it so the average basket weaver can understand but we know some of you should not attend!

The next day we will go over the following: 1. How to find good deals, 2. How to finance good deals, 3. How to make the value skyrocket, and, 4. Share some case studies.  Like I said, lots of meat, light on potatoes.

The home study course that will result from this one-time boot camp will sell for $1,495.  We are adding to our current text and including a second one on property management.  You can attend this event, that would normally be priced at $1995.00, as a subscriber to this newsletter, for only $295!  Just pay before the end of this year.  Fly into Hobby airport; it will be at the Hilton on the University of Houston campus near there.  That's Southwest Airline's hub. You can order the CDs only of the Boot Camp, for only $495, pre-paid before the end of this year. Buy THE CDs NOW! Or, attend the boot camp and get the CDs (both) for $695, pre-paid before the end of this year. (Spouses can attend this boot camp for only $95.)

More details will be sent to you when you enroll.  Just email us right now at  reitbootcamp@kingwoodcable.net  and we will call you back to get your enrollment information. Platinum Access students attend for free, as usual.  Call us at 800-677-3253 TODAY.  The room only holds 100 people and we are presenting this opportunity to 800 people just after the first of the year.  We will sell out.

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We've lined up a first-of-the-year fun plan.  I call it SEA and SKI.  The "Ski" part is a two day event in Salt Lake City, on January 9^th and 10^th, a Friday and Saturday, with skiing available on your own before and after.  Check with your accountant, but I think you can deduct this!  The event will cover a variety of topics, mostly Creative Financing, and there will be a second surprise speaker. 

The "Sea" part is two full days of Creative Financing, our standard Boot Camp, in Ft. Lauderdale on Saturday and Sunday, January 24th and 25th.

To learn more go to www.zick.com.

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We always enjoy hearing from our students who are achieving their goals using our techniques.  If you have a story to share, just send the details in an email to newsletter@zick.com with "success story" in the subject line. 

Go to http://www.zick.com/helpfullinks/testimonials.shtml for more information.

Here is an example of a student who is getting results!  He made $26,900 plus $250 per month for a year within 30 days after purchasing our Hidden Profits course.

I purchased a property in Stuart, FL for $100,000, less a $7,000 commission, for a bottom line of $93,000 on about 9/30/2003, $80,000 mortgage, about $550 month. HUD-1 available.  I lease-optioned it on 10/28/03, using Barney's L/O Option for Tenant form, for $119,900, one year, payment at least $800/month.

I have another "Flip" in motion, but it is a mobile home, and looks like it may take 90 days or so.

Thank you.
Best, Bill Kurtz
Stuart, Florida

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Have you seen the one that has the lady in line to get a home loan and a second lady asks her, "Are you looking for a home loan?" When she says "yes" she whips out her lap top and before the line moves forward, she gets a loan approved over the internet.  I love it!  Now that is marketing!

Go get ‘em honey! Send those lap tops to every bank in town. But best you don’t try that in a bank I own! Next thing you know, Wendy’s will be selling hamburgers in the drive up lane for McDonald’s!

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A newsletter subscriber who also teaches, asked, “Barney, how do you keep from burning out?”

Here's my reply...

a. I am half crazy...an AA personality.

b. I am stubborn...I have not gotten to where I want to be.

c. I do burn out.  I have quit this business three times.

d. I am married to someone I do not want to lose, so in taking time to keep married, I end up taking time to take time.

e. My favorite thing is to plan time with good friends.  Doug Gilliss is in San Diego.  We booked a day with him when I did an event there.  He took me up in his fighter jet for a ride.  What a rush!  That was six weeks ago. 

Four weeks ago, I did a gig for a great friend in Quebec.  We went two days early and toured Montreal.  Then we stayed over to enjoy a party he had where they had a seven course meal with four kinds of wine and everyone, I mean everyone, just danced, partner or not, before the evening was over. 

Last week we booked an extra day in with Mac Ross, my great friend in the suburbs of D.C.  He is also one of the most brilliant marketing minds in America, helping major marketing oriented companies re-tune their master marketing plan. So, along with a fun time, he always gives me great career advice, without the usual six figure retainers!  And I suppose I give him an idea or two too.  That night, we went to his house.  He is also a wine expert and we surprised him with some great wines.  He and his wife, Margie, (who runs one of the most successful publishing companies in the U.S.), Karen, their kids, the lot of us, went for steaks and had fabulous dinner conversation. 

Last weekend we had dinner with one of our new Platinum students before the two-day event in Chicago.  The next night a second new Platinum student, Karen and I, and Jane Garvey had a great time out. So I guess my love of people keeps me sane and going at it too.

Lastly, if you really enjoy your craft, you work on it.  This year I have asked three friends to help me with my presenting style and purchased a bunch of materials on speaking better.  I usually do a little of this each year, but this year was a major effort.

The biggest help came from Mac Ross, to whom I will be eternally grateful.  He is a pro’s pro and a great friend. When someone gives you a new way to look at what you've been doing, it keeps you from reaching burn out.
 

Hope this helps.

BZ

The Fine Print...

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We will publish the REIT Real Estate Report, containing Real Estate Education Industry News and a lot of personal opinions, and Advice for the Impatient Investor, approximately once a month.  (However, keep in mind, our newsletters are free so don't get upset if we skip one occasionally!)

Advice for the Impatient Investor has been published for thirteen years (but, not in a row).

Folks smarter than us told us to say: We take no responsibility for the accuracy of the postings.  All contents of the postings are the responsibility of the posting party.  The foregoing material is strictly for informational purposes only and does not provide legal, financial, accounting or investing advice or services. Use of any of the foregoing information does not create a client relationship.  You should not act on the information provided without seeking legal, accounting and tax counsel of your choice.

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Copyright © 2003 by Real Estate Investors Training Corporation, Kingwood, TX

ISSN # 0272-8559

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