FEATURED STORY
Master Investor
the market and building stopped. Now, there’s very little inventory, and developers are scrambling. At some point, though, the market will shift again, and when it does, Real Wealth Network will shift its focus, too. That’s one of the advan- tages of working with an investment group like Real Wealth Network, which studies the market so closely— you don’t have to try to figure out the timing and cycles on your own. again, just how difficult it can be to try to invest in real estate on your own. One of her favorite examples is that of a woman who owned three properties in Stockton, California, each worth about $400,000 in 2005. She wanted to retire but wasn’t sure how she could on the $1,200 per month each of the properties generat- ed and asked Kathy for advice. Kathy told her to sell because there was a bubble in California real estate. On her advice, the woman sold all three properties in California and purchased nine in Texas. These nine properties now generate three times as much profit as what the three properties in California generated, making it possible for her to quit. If the woman had held the California properties, they would have dropped in value to $100,000 each, and she’d still be working, according to Kathy. Another example is a man who inherited a dilapidated home in San Francisco with a tenant who didn’t consistently pay his rent. Kathy pointed out to the new owner that he had all of his “eggs in one basket,” so to speak, and it wasn’t even a real- ly good basket since San Francisco has earthquakes, rent control and tenant-friendly laws. She advised him to sell the property and buy elsewhere. Despite its run- CHANGING LIVES Kathy has seen, time and time
CREATING REALWEALTH In 2003, she and Rich co-founded Real Wealth Network, an investment group based in California. Anyone can sign up to become a mem- ber—regardless of where you live—and gain free access to online educational materials, 500-plus infor- mational podcasts and a daily news podcast. Members can also attend monthly events held in northern and southern California or sign up for a market tour to see what’s available in an area where the investment group has inventory available. Again, this is all free, Kathy em- phasizes. Real Wealth Network makes money by referring members to local resources, such as real estate agents, brokers and property management companies when they make a pur- chase through the investment group. If you use one of these local resourc- es’ services, that company will pay a small referral fee to Real Wealth Net- work. Kathy believes their business model probably has put a few gurus out of business. “A lot of the boot camp guys couldn’t compete with free,” she says. In addition to their online academy, podcasts and single-family inventory, Real Wealth Network started offering other investment opportunities about six years ago. A developer approached them with a deal for 27 waterfront townhomes in Portland, Kathy says, and asked if they could raise $2 mil- lion. She was able to raise the entire amount after sending out one email to members, who made 20 percent on their investment. Based on the enthusiastic response to the email and the strong return on investment, Real Wealth Network began looking for additional oppor- tunities to work with developers. It’s all about the market, according to Kathy, who points out that for a long time there was a glut of property on
PERSONNEL FILE NAME: Kathy Fettke COMPANY: Real Wealth Network
WEB: realwealthnetwork.com
PHONE: 888-796-9675
FIRST REAL ESTATE DEAL: FETTKE We bought our first properties in Dallas in 2004-2005. At the time, so many people were investing in California, but the investors I was interviewing were selling their California properties and buying in Texas, so that’s what we did. THE NEXT DEAL: FETTKE We haven’t always done everything right. The next property we bought was in Boise, which has only one employer. That was a mistake. We learned on that one. WHEN YOU’RE NOT WORKING: FETTKE I’m an avid traveler and enjoy hiking, rock climbing, skiing, figure skating and surfing. FAMILY LIFE: FETTKE We have two daughters, one 17 and one 24. Investing in real estate gave me the opportunity to raise my children and to attend anything they wanted me to be at, like games or school programs. WHY SHE LOVESWHAT SHE DOES: FETTKE We get to help people who don’t know how they are going to pay for retirement or even their daily expenses use real estate to make their dreams come true.
Real estate investing has allowed Rich and Kathy Fettke to live life on their own terms.
down condition, the house sold for $1.5 million, and the investor was able to use that money to purchase 20 properties in Houston, Cincinnati, Indianapolis and Jacksonville. Now, instead of getting the meager amount he would have if the tenant decided to pay, the investor earns $20,000 per month. Essentially, that’s what Real Wealth Network is really all about—generat- ing enough income to live life on your own terms, she says.
you’ve tried before and lost money. “Our meetings are full of people who lost money in real estate, but I think they understand that they lost money because of what they didn’t know,” Kathy says. “I think they un- derstand that they didn’t understand.” But, by taking advantage of the re- sources available through Real Wealth Network and educating yourself, you can invest in successfully and have enough money to live your dreams, whether that means staying at home with your kids or retiring and travel- ing around the world. If you want to get to that point, though, Kathy says, education is key. “Educate yourself thoroughly,” she advises. “Don’t jump into anything you don’t understand.” She adds that once you have a good
understanding of real estate and the market, you need to continue to educate yourself because the markets are cycling faster than ever before. What worked this year might not work next year. That’s why, no matter who you are or what your goals as an investor are, it makes sense to become a member of Real Wealth Network—the daily news podcasts can keep you up- to-date on what’s happening in the market and help you avoid a costly mistake. Plus, you may just find a few great investment opportunities while you’re visiting the site. •
LIVING LIFE ON YOUR OWN TERMS
Investing in real estate is one of the best ways to generate passive income, and Kathy believes Real Wealth Network can give you the information and tools you need to invest successfully, even if
Teresa Bitler is a regular freelance contributor to Think Realty Magazine. Contact her at teresa@teresabitler.com.
22 | think realty magazine november :: december 2016
thinkrealty . com / mag | 23
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