Plain Coon To A Tycoon

FROM A PLAIN COON TO A TYCOON

"Don't Wait to Buy Real Estate ... Buy Real Estate and Wait!"

From A Plain Coon ToA Tycoon

From A Plain Coon To A Tycoon

Freddie Burton

SEEK YE FIRST THE KINGDOM OF HEAVEN

Jesus Christ, whom I have the utmost respect, makes reference as to the where- a bouts of heaven as being within. If heaven is within, it must be between my ears where it is possible to perceive the presence or absence of pain. If I am being who I want to be, doing what I want to do, and having what I want to have, I am experiencing no pain. Therefore the absence of any physical or emotional pain is a heavenly state of mind that can only be achieved by adhering to certain underwriting guidelines of the universe. Jesus refers to these guidelines as his principals, and, if followed, would result in a state of peaceful bliss thereafter. Therefore, I reason that when Jesus makes reference to a hereafter, he meant here and after you get it together. I was never convinced that my ticket to heaven was dependent on my believing that Jesus a mortal man, walked on water, rose from the dead, or was created by one parent. However, Jesus' revelations about love and penance are a perfect recipe for the peace of all mankind. Jesus' only commandment was to love thy god, thy self, and thy neighbor negated all those other commandments about stealing, lying, and killing, because if you truly loved your neighbor you wouldn't steal, kill and lie about it.

Freddie Burton

the material manifestation to all my dreams. Enthusiasm is the key to this creed; not just a short burst as one might experience in an inspiring church service, but forget all its merit when someone cuts in front of them on the way home, for enthusiasm is like yeast in bread, in that it raises the dough. This love for thy self can best be demonstrated in an interview with Muhammad Ali when asked by a reporter if he was in love. Ali paused, gathered his thoughts and replied, "No, not with anybody else." Where heaven is after this physical existence enters into the realm of metaphysics (pure speculation) but, everybody that's been there for a few minutes says it's all lit up, which leads me to believe some type of enlightenment takes place, such as the 90% portion of the brain never used is somehow awakened, revealing all of the secrets of the universe, and producing a oneness with God, thus reducing my fear of death to mere curiosity. So, if Religion is about an individual transformation, why would one join some organized belief system and pay Reverend Lowdown Oust kidding Rev) for some advice about life after death and the Reverend hasn't even been there, yet. In an effort to understand the universe, one thing stands out for sure; everything has its opposite (hot/cold, up/down, good/bad) dictating that the only permanent thing in the universe is change. Perhaps God put man

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here with opposing thoughts for his entertainment, as he had not yet conceived of television. Seeking first an understanding of the relationship with the universe should develop some purpose in life and formulate a basis for the decision-making process. Amen: and if God is a woman. A woman.

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Freddie Burton

THE BATTLE OF LOVE

Don't lose this one because you might lose your mind with it. The traditional Geneva Convention rules of engagement are a little different in this battle, because the male generally has a physical size and strength advantage. Nature endowed the female with some emotional rules, to even things up and keeps the opposition off balance and confused. They are as follows:

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THE RULES The FEMALE always makes The Rules. The Rules are subject to change at any time without prior notification. No MALE can possibly know all The Rules. If the FEMALE suspects the MALE knows all The Rules, she must immediately change some or all of The Rules. The FEMALE is never wrong. If the FEMALE is wrong, it is due to a misunderstanding which was a direct result of something the MALE did or said wrong. The MALE must apologize immediately for causing misunderstanding. The FEMALE may change her mind at any time. The MALE must never change his mind without the express written consent of the FEMALE The FEMALE has every right to be angry or upset at 7

From A Plain Coon To A Tycoon

any time. The MALE must remain calm at all times ... unless the FEMALE wants him to be angry and/or upset. The FEMALE must, under no circumstances, let the MALE know whether or not she wants him to be angry and/or upset. The MALE is expected to mind-read at all times. Any attempt to document The Rules could result in bodily harm. If the FEMALE has PMS, all The Rules are null and void. The FEMALE is ready when she is ready. The MALE must be ready at all times.

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Freddie Burton

If you are going to take the plunge into the sea of love, be sure to take this book of tickets with you, for you will certainly need them.

Relationship Citation (Next Page)

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Copyright © 2007 by Freddie Burton All rights reserved including the right of reproduction in whole or in part in any form

Published by New World Media A division of Trident Media Company 801 N Pitt Street, Suite 123 Alexandria, VA 22314 USA

From A Plain Coon To A Tycoon

Relationship Citation

Date of Violation

/ / ---------

Citation No. 5651

ll===L=o=c=a=tl=" o=n=o=f=I=n=fi=ra=c=t=io=n===? Identification Marks

Violaters Name Issued By: ______________________________________ Issued for: D VC301 Insensitivity D VC302 Jealousy D VC303 Lying D VC304 Impatience D VC305 Meanness D VC306 Negligence D VC307 Selfishness D VC308 Nagging D VC309 Being insecure D VC310 Lack of attention D VC311 Being too busy D VC3l2 Not calling D VC313 Not listening D VC3l4Standingmeup D VC3l5 Leaving the place a mess D VC3l6 Forgetting our anniversary D VC3l7 Forgetting to pick up the _____________ D VC3l8 Leaving the toilet seat up

D VC3l9 Staying outtoo late D VC320 No spontaneity D VC321 Flatulation D VC322 Snoring D VC323 Not taking me out D VC324 Being a couch potato D VC325 Being late D VC326 Forgetting my birthday D VC327 Not communicating D VC328 Not being there for me D VC329 Lack of cuddling D VC330 Being a know-it-all D VC331 You know what you did D VC332 Being a back seat driver D VC333 Talking with increased volume (screaming) D VC334 Giving me the silent treatment D VC335 Eye affixation on another person D VC336 Other:

You are hereby ordered to perform the following restitution: RC _____________________

(Restitution Codes listed on back) I acknowledge that receipt of this Relationship Citation requires that I make restitution in accordance with the Restitution Codes indicated on the back. Restitution may include participating in the required activity or paying the noted fine. I understand that failure to comply with this citation will result in confinement to Relationship Prison -- "The Dog House" until further notice

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Restitution Code D RC 101 A walk on the "wild side" D RC 102 An apology D RC 103 A trip to the In-Laws D RC 104 A good "spanking" D RC 105 Hot passionate _______________________ D RC 106 Dinner D RC 107 Bubble Bath D RC 108 Massage D RC 109 Suspension of boy's night out for I week D RC 110 Suspension of girl's night out for I week D RC III Suspension of all golfing activities for I week D RC 112 Iron my clothes for I week D RC 113 Mow the lawn D RC 114 Send me flowers D RC 115 Take me out on a date D RC 116 Watch the sunset with me D RC 117 Curfew set (before the clock strikes ___________ ~ D RC 118 Clean-up together on (date) D RC 119 Show more affection D RC 120 Prepare me a special home-cooked meal D RC 121 Buy me a new outfitJcar/home D RC 122 Take out the trash D RC 123 Set aside some cuddling time D RC 124 Clean up the garage D RC 125 Take me to a concert D RC 126 Watch a movie with me (my choice) D RC 127 Watch Monday Night Football with me D RC 128 Remote control privileges revoked for I week D RC 129 Perform an exotic dance for me D RC 130 An evening chat D RC 131 Mud bath & facial at local spa D RC 132 Become a better partner/team mate/friend/lover D RC 133 Pay more attention to me D RC 134 Positive affirmations for I week D RC 135 Minimize your actions in the area in which you were cited D RC 136 Walking hand in hand (location to be discussed i.e. Hawaii, Bermuda, Switzerland, Egypt) D RC 13 7 No restitution granted, automatic confinement to Relationship Prison--- "The Dog House" until further notice. D RC 138 Fine _____________________($) D RC 139 Other

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One thing bears mentioning in this battle, it is the significance of the WOO WOO (female survival kit located in the middle lower extremity). Man, at the dawn of civilization, hunted furs to influence the woman of his choice, and until this day will lie, steal, kill, rape, cheat, risk his career, and his life just to behold that part of a woman's anatomy for just a few precious moments. Testosterone, an intricate part of man's chemistry, so compels his centerpiece to seek that warm and wet place to express itself, that much of his time is preoccupied designing ways to relieve this enormous pressure. Estrogen (the Woo Woo's hormone) unlike testosterone does not possess this compelling need to unload its chemistry, nor does it experience the euphoric feeling of relief in the muscles, nerves and mind as men do. If women experienced that overbearing urge, they would take on the actions of men who indiscriminately are willing to have sex within the first five minutes of meeting just about every person of the opposite sex, without even taking an interest in knowing her name. If two people are entertaining the idea of indulging in the act together the one that's just passionately got to have it happen, is negotiating from a weaker position, and must adhere to any number of other's terms, perhaps committing to the three ring circus; the engagement ring/ the wedding ring/and the suffering. The suffering comes because the marriage is based

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on a Judah/ Christian concept that limits sexual activity exclusively between two married partners, which is diametrically opposed to man's animalistic urges, causing hypocrisy, misrepresentation, and deceit to be the theme of the day. Then they have a big fight over who gets the house, which usually ends up fifty/fifty; she gets the inside and he gets the outside. The desire to love and want to be loved is probably man's deepest emotion, but because of its whimsical nature, is the most difficult to control, for its like the wind, coming when it wants to, and leaving when it gets ready. One of the most educational and humanizing experiences takes place when one is on the short end of a love affair, because of the lack of self-esteem so impairs judgment, that bad decisions run rampant. It is imperative at this low point that one summons some discipline, will power and fortitude to avoid drowning in the sea of love. This battle is primarily waged by the young, while the hormones are raging at their peak, but when the old centerpiece is out of gas and looks like somebody tied a rock on the end of it, the upper head takes the wheel and drives through emotional orgasm-land, which is far safer, and longer lasting. To the men of the world, I say to you, don't hang your head in shame when someone refers to you as a philandering promiscuous, womanizer; just realize that is merely 13

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the method the Creator utilizes to insure the perpetuation of the species. Finally, from these observations, I suggest men will maintain most of the political power and wealth in the world, not because of their superior intellect, but simply because their sexual appetite generates more enthusiasm to control the World's Woo Woo.

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Freddie Burton

THE BATTLE OF THE BULGE

I once read about a group of people that were experiencing emotional problems. Half of the group attempted to resolve their problems by collectively sharing, and analyzing their experiences verbally. The other half undertook a physical therapy approach and developed some type of regular exercise program. Six months later found all of the exercisers much improved, and the ones that attempted to talk it out were still sitting around talking about their problems. I suggest to you that the exercisers experienced a dual positive effect; one of which was an elevated selfesteem as a result of developing a new positive habit, and the other of improving the actual physical well-being of the body. In the millions of years of man's existence on the planet, only the last one hundred have relieved him of the physical activity necessary to survive with the advent of the telephone, computer, elevator, escalator, auto, etc. Therefore, one might entertain the idea of obtaining a card to a health spa as a substitute for the former physical activity necessary to hunt food and to get from one place to another. When the body experiences a vigorous, sustained physical activity for about twenty minutes a day, a number of beneficial things happen. 15

Freddie Burton

When fear exists in the mind, the endocrinology (system of glandular secretions) of the body produces extra energy to respond to the danger. Likewise, it follows that for every emotion the mind experiences, a corresponding effect is materialized in the body. If Hollywood does its job on a scary movie, and captures your imagination, your body suffers because your mind experiences anxiety that secretes negative enzymes to the body because it can't tell the difference between fiction and non-fiction. Norman Cousins, a leading proponent of this concept nursed himself back to health from a terminal disease by viewing funny movies for a prolonged period of time. The moral of this story is that through exercise and a contented state of mind, you will feel like a million dollars even though your bank account may not reflect it, and how you feel is what it's all about. Lastly and most importantly is your Emotional I.Q. (not to be confused with Intellectual I.Q.) the ability to receive, analyze, and respond to stimuli. Extemporaneous outbursts of overt anger (a rage) can cost you as much as your life, much regret, and usually some money and an apology. Your emotional I.Q. during the enraged periods will dictate whether you will do as O.J. did, and kill your wife, or as Jim Brown, and Richard Pryor did, and just kill the car. All three had an adequate amount of intellectual I.Q. to reach the top of their game, but lack the Emotional 17

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1.0. to stay out of trouble. If you subscribe to my "everything in the universe has its opposite;" it follows that half the people in the world are opposed to the way you think, and feel about things, so be prepared for your next opponent who's right around the corner. A part of your growth is the development of a better you, which entails becoming more respectful and tolerant of others. I challenge myself to see just how long I can keep from getting angry at people; it does help if you make a conscious effort. Through your growth, you will recognize the shortcomings in others enabling you to respond by disagreeing, but not being disagreeable.

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Freddie Burton

WAR ON POVERTY Poverty so repulses me that I have declared all out war on it. What is poverty, you might ask? Poverty is living in a cardboard condo with nothing but a nickel and nail to jingle in your pocket, while trying to decide whether you're going to buy bread or milk at the store. On the other hand, prosperity is ressing and dressing, spinning and grinning, and dancing and prancing. The primary assault on my economy is directed by my uncle who deploys one of his foot soldiers to drop as many bombs (bills) in my mail box as he can carry in his little bag six days a week. I can't remember the last time he brought a love letter. In order to withstand this daily bombardment on my economy (army), I must be strong enough to prevail, or my infrastructure (food supply, communication, shelter) will be destroyed to the point that I will have to set up my command post on a bus stop bench. Wars are fought by taking territory (real estate) and mine is no different. When contemplating strategy for the direction of my next acquisition, I set my sights on cash flow properties (income producing) so they can defend themselves while I open up another front in the war. Target areas where people pay rent for shelter (residential income) and not shopping areas, because in hard times people do less shopping but must always have a place to live. I prefer choosing areas deemed low to moderate income because the federal government will 19

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subsidize my acquisition financing, and pay the tenants' rent (Section 8). So, I don't have to deal with 'Johnnie Paycheck' who, when he runs out of money may take me through the court system to recapture the territory. My motto is, "If I serve the poor, I will eat with the rich, and if I serve the rich, I will eat with the poor."

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Freddie Burton

FINANCING THE WAR Two things come to mind immediately. One is that the least amount of your money you involve in a project, the more cost effective it will be. This means you will be borrowing a lot of money which is dictated by the Golden Rule: those who have the gold, make the rule. Two, your Uncle Sam will take more than half your money if you don't acquaint yourself with the tax code, for taxes are like Robin Hood in reverse, in that it robs the poor and gives to the well-informed. In the loan process, the borrower rarely meets the lender personally, but submits a package of documents in which the three C's (credit, cash flow, collateral) dictate the quality of the loan. So, if your credit is so bad you can't buy anything on lay-a-way, you will need a lot of cash or equity. The first thing of interest to the underwriter in the package, is your track record demonstrated on the credit profile as to how you have handled paying bills in the past; because the lender understands that man is a creature of habit, and he isn't going to change just because he approves a loan for you. Of significance here, is: •How many lines of credit you have •The amount of the line •How much of it have you used •The age of the account

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• And if you have paid them in a timely fashion This is an intricate part of the criteria in determining an individuals' F.I.C.O. score (credit risk) that is computed by each repository (Experian, Trans Union, Equifax) which has much to do in determining the interest rates because most loans are F.I.C.O. driven. It is difficult to say exactly what a particular F.I.C.O. score will do because of the volatile nature of the market, but conceptually, the higher the score, the higher they loan to value, the lower the interest rate, and the fewer points (cost of origination.) Pay me now, or pay me later is the lenders attitude, so pay them now and let them send you credit cards without annual fees in the mail. Lenders can tell by your credit profile, that you are a good risk, and will forever send you cards in the mail if you will accept them. Accept their offer so if a foreclosure deal comes along, you can give the seller something, cure the loan, and fix the property, without having to call in an investor who will want half the deal. If you never use these cards in your lifetimes, and one day the doctor shows you a spot on your lung, and gives you a year to live, what's to prevent you from boarding a cruise ship that's headed around the world? And if you don't want to die owing anybody, buy some expensive life insurance with your cards, so the lender will get paid after the party is over. 22

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Another factor in determining the quality of the loan is the degree of documentation offered by the borrower. A fully documented loan (current pay check stubs, verification of employment, two year's taxes and profit and loss statement) will beget the better quality loan. If the borrower cannot fully document the loan, the lender will allow him to simply state the amount of money he makes on the loan application (commonly referred to as a liar's or dope dealers' loan). The lender will probably ask for bank statements to get some idea of the cash flow. Bear in mind that the less documentation you avail to the lender, the more the loan will diminish in quality. One other significant impact on the loan in whether you intend to live on the property or not. Lenders feel that the property you occupy will be better maintained and the last one you will let go of in the event you encounter some economic problems. Consequently, the non-owner type loan has a lower loan to value requiring a down payment, with higher interest rates, and higher origination costs. Some borrowers attempt to avoid this non-owner, investor type loan by claiming they intend to live on the property, forcing the underwriter to make the decision on granting the loan or not. If the borrower lives in a single family house in an exclusive neighborhood and is attempting to purchase a duplex in a lesser area, the underwriter may very well 23

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reject the request on the basis the borrower is probably not going to occupy the property. If you do lie and get away with it, be sure to put your name on the mailbox along side the tenants so the mail is not returned to the lender. Further, if you lie on a loan application and get away with it, be sure not to allow it to go into default, perhaps triggering a federal investigation because you are dealing with federally insured funds. Allow me to suggest strategy to assure you of obtaining owner occupied financing and building a portfolio of real estate at the same time. Purchase a single family dwelling that's zoned for multiple units and has adequate room for parking and additional structures. Build your units; now you look like a guy desiring a home in seclusion, enabling you to repeat the process. Additionally, if you build your portfolio from an apartment, every loan looks like you could be moving in.

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CASH FLOW The lender looks at what is commonly called the debt to income ratios by simply taking into consideration the borrower's monthly expenses, as opposed to his income. As a rule of thumb, the borrower is allowed to spend about 40% of his gross income for bills to qualify for a conforming (conforming to Fannie Mae standards) loan status. If a borrower qualifies, he can obtain the best loan in the country. If the borrower exceeds the conforming ratios, he is categorized as a non-conforming borrower, and can be funded by what is commonly called SubPrime Lenders that offer higher rates, lower loan to value, and higher origination cost. Income qualifying changes dramatically once you exceed the one through four unit category which is a carryover from our previous agricultural society, wherein a farm generally had about four structures on it, and considered owner-occupied status. Five units and more in considered multi-family, and the qualifying weight shifts from the borrower to the building that must produce from its gross income 120% of the principal and interest payment, plus 35% for taxes, insurance, maintenance, vacancy factor, etc.

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COLLATERAL As a rule of thumb, the lender will expose themselves 100% on owner occupied 1-4 units; 80% on five units or more; 65% on commercial (store fronts, gas stations, churches) and about 50% on raw land.

THE DUE ON SALE CLAUSE Occasionally, you may encounter a property that has existing financing on it you like and wish to take over. Be aware that the lender has inserted in the by-laws of the loan a clause that says; in the event the subject property is conveyed, the lender has the right to accelerate the payments and demand the remaining principal balance. The borrower may submit income and credit documentation and request the lender to change the loan into his name. If the loan is not assumable, the purchaser may consider vesting the property in a trust, which is exempt from the clause.

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Freddie Burton

LEVERAGE AS OPPOSED TO A JOB (SECURE POVERTY) Getting on the mule (a job) is what I refer to as 'secure poverty' because you will be secure in your poverty in that you should have an adequate amount of food, clothing, utilities, transportation, and some kind of shelter. Most people resign themselves to this lifestyle, living in quiet desperation of mediocrity, and never experiencing a state of opulence. The first thing most people do upon arrival at the job site is to check the clock to see how long it's going to be before their first break. After that first break, you're looking forward to lunch, the afternoon break and getting off. How far away is the weekend, annual vacation, and retirement are constant thoughts throughout the day. So you are really hoping that enough time will pass so you can sit on the porch and not have to be bothered with the boss and half the people on the job that you don't like, and they don't like you. Bear in mind that 85% of job failure is due to the inability to get along with co-workers and not the lack of job skills, so don't forget to do your share of politicing. At some point, a man must realize that no matter how many jobs he has, he will only get old and tired, and not rich, if he doesn't invest his money, because the difference between a rich man and a poor man, is that a poor man works for the money and the rich man makes the money work him.

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Remember this, a man Earns money form his shoulder down and makes money form his shoulders up, and at some point he must make a switch. All men are not destined to be wealthy, for there are three types of men: men who make things happen, men who watch things happen, and men that wonder what happened.

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Freddie Burton

LEVERAGE & TAXES Leverage as applied to financing is simply the use of other people's money as opposed to yours. For example, if you have a $100,000 house free and clear of debt and that house is appreciating at 10% annually, that house will be worth 110% a year from now whether it is encumbered or not. If you take that free and clear house and borrow $100,000 and pay down 10% on ten $$100,000 houses, you will have made $100,000 in the next year as opposed to $10,000. That $100,000 house is going to make $10,000 a year whether it's encumbered or not, so invest in debt and allow the tenants to pay it off while you utilize the interest deductions and depreciation to avoid taxes. If you position yourself with maximum leverage (no money down) your return is infinite Purchase as much property as you can that will support itself, and as they appreciate in value, borrow on them to buy others, or exchange them to defer the capital gain taxes. For instance, if you acquire an expensive house in foreclosure; that the rent does not support the loans front end (principal and interest, taxes, insurance, private mortgage insurance, homeowners dues); thus producing a negative cash flow (an alligator); put that house up for sale. When your buyer comes along, inform him that he must participate in and exchange, but it won't cost him any money to do so. 29

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Then find some units that the proceeds from the sale of the house will make the down payment on and get that owner to agree to also participate. Exchange your house in the same escrow for the units, so the purchaser of your house will buy it from the person that used to have the units, and now has the house. Your capital gain tax from the sale of the house will be deferred into the units and not triggered until you sell the units or die, so continue to repeat the process throughout your life.

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Freddie Burton

HELP THOSE WHO ARE LOSING THE BATTLE TO WIN YOURS One of my favorite acquisition techniques is to deal with a person in foreclosure that is holding one to four units that can't borrow enough to cure the loan because he exceeds 65% loan to value: that's the limit when a Notice of Default has been filed. Instead of curing the loan and giving the seller something for a deed, I, with my high F.I.C.O. score, offer to buy the property with no money down for the total amount of encumbrances plus the closing cost, and lease/option it back to him for a year with his rent being the sum total of the front end (payments, taxes, insurance). My sales price back to him is $20,000 more than I paid for the property. For my service and as a condition, he must undergo a credit program called I.C.R. that detects derogatory information on his credit profile that was not entered in accordance with the Fair Credit Reporting laws. Often these entries are made improperly, and when detected, must be removed by law, so his F.I.C.O. scores are then high enough to buy the property back, Bottom line: I saved him from the wolf, gave him an opportunity to get back on title; if he opts not to buy it back, I bought a house under market value and I am off to trade it for some units. In putting the growth of real estate in its proper prospective, I must look back at my grandfather for who 31

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the planting and maintaining of fruit trees was one of his fortes. We made wine out of all the plums, peaches, pears, and apples we couldn't eat, sell, or can. My grandfather had only to spray insecticide for bugs, and prune (cut some limbs off because they were so heavily laden with fruit, that they would break and injure the rest of the tree) in order to produce a bumper crop every year. An apartment building is much like a fruit tree in that once you plant it, you begin to enjoy its appreciation, tax shelter, and cash flow with a minimum amount of maintenance. The tree will produce more fruit each year because of its growth, so why would you ever want to cut it down (sell). Borrow on the tree and plant another, and another until you can answer the question as Don King did when Peter Jennings asked him, "Just how much money do you have Mr. King?" to which he replied, "if you can count it, you don't have enough."

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PROMOTING AN UNNECESSARY BATTLE

If you want to start a fight among your heirs, just die without leaving any specific written instructions as to who is to receive what; they will be rolling their eyes at each other in the funeral parlor. If upon your demise, you want to run your estate from the grave; do as one of Julius Caesar's general did when he deeded all of his assets to an entity he called a 'trust', with instructions to his brother (the trustee) on how to distribute his wealth to his foreign born wife who could not own property in Rome because of her citizenship; thus creating the first known trust. Now, if you have a trust, simply deed your estate to the trust (called funding the trust) and appoint a successor trustee who will distribute your assets upon your demise in the manner prescribed by you. Probate court takes about a year's worth of expensive appearances by a probate attorney and can be avoided with a $500 document (a turst). The beauty of my personal trust is that my successor trustee is not instructed to divide my estate into lump sums of money and distribute it to my heirs, but to leave the apartment buildings in the trust, and use them to

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produce housing, jobs and food for my heirs for as long as the law of perpetuity (21 years after the death of my youngest heir) will allow. My successor trustee is not allowed to sell or encumber any portion of the estate unless the proceeds are used to purchase additional real estate for the trust, so the estate can only grow in value. I also instructed my successor to maintain insurance to protect from every conceivable peril including fires, earthquakes, and terrorism. Further, if there is discord among family members, the trustee is instructed to call a family meeting in which the source of the discord is brought to the surface and some resolve to the issues are made by the family members who sit as jurors in the matter and vote the outcome. Further, if one family member physically strikes another family member, he will be fined the first time, suspended from any income the second, and permanently banned upon the third striking.

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Freddie Burton

GATHERING INTELLIGENCE Gathering information is the key to becoming an authority on any subject as one of my friends does as he reads the sports page every day and can probably tell you who won the 1960 Rose Bowl and how many sacks the Purple Gang made in the first half, but it won't buy him a cup of coffee at the break on that hard working job he has. I suggest you collect some information that will enable you to bring into material manifestation all your life long dreams. If you can make these kinds of things happen, retirement is not a consideration, because it would stop your growth. Ongoing growth is important, because man's growth is much like a vine in that when it is growing, it's green and strong; but after it becomes ripe, it withers and falls off the vine. Knowledge is power; the power to resolve the many problems you will encounter at every turn, because your ability to solve problems will be directly related to the amount of income you will receive. More importantly, knowledge will allow you to walk through a real estate transaction filled with land mines, comfortably, with a blindfold on. The real key to becoming a formidable foe in the war on poverty is the ability to collect, retain, associate, and execute on a wide range of information on the subject of real estate.

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I found the best information came form those who had some reasonable success with a particular real estate concept, and enjoyed sharing it with others, because they understood that they could not help another individual without helping themselves in some way. Buy their tapes, attend their seminars, and read their war stories, so you will better understand the battleground. High on my list of suggested reading is Napoleon Hill's THINKAND GROW RICH (the rich man's bible) for it deals with the basic concepts of the wealth process in any field. Another is the DAILY COMMERCE, a Los Angeles based publication with a variety of articles on every conceivable real estate subject. Learn by doing as I did in the Army when I disassembled and reassembled my M-1 rifle blindfolded, as a requisite to the completion of basic training. That's an education I retained for many years because I didn't read about it, or hear about it, but actually went about it.

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THINK AND GROW RICHI THE RICH MAN'S BIBLE Andrew Carnegie, (millionaire philanthropist) began his career as a laborer in the steel mills of Pittsburgh, and rose to the top of the industry in the early nineteen hundreds. He so wanted to impart to the world the knowledge that allowed him to obtain his wealth, that he commissioned Dr. Napoleon Hill to interview 500 of America's most prominent men in order to examine the common threads they all shared; thus enabling him to develop his "Science of Personal Achievement". Twelve characteristics seem to emerge more than others, and they are as follows. 1.A positive mental attitude 2.Sound physical health 3.Harmony in human relations 4.Freedom from fear 5.Hope of future achievement 6.Applied faith 7.A willingness to share one's blessings 8.Must be engaged in a labor of love 9.An open mind on all subjects 10.Complete self-discipline 11.Wisdom to understand people 12.Financial security Many of the men interviewed including Thomas Edison and Henry Ford had little or no education, surrounded 37

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themselves with men with far more education and expertise than themselves, thus creating Dr. Hill's concept of the "The Mastermind Alliance." Napoleon Hill's "Mastermind Alliance" concept is much like hooking an individual battery into a series of batteries, giving each enormously more power, and creating some what of a third battery. Likewise, two or more intelligent minds harmoniously working together to resolve a specific problem automatically create a third mind as its resolve. President Roosevelt, being fully aware of Dr. Hill's astute ability to employ this concept as he did in writing, THINK AND GROW RICH, summoned him to command such a group to bring this country out of the depression in the 30's. This mastermind group consisted of leaders in banking, energy, agriculture, transportation, housing, the press, clergy, congress, etc. Out of this alliance came F.D.R.'s "New Deal" pump priming work programs of the W.P.A., the Tennessee Valley Authority, banking reform insuring each bank account against a $100,000 loss, and F.H.A. which allowed a not so credible borrower to buy a house with an unheard of 3% down payment, and the beginning of the Social Security program. It is with great satisfaction, I am currently experimenting with this concept as I have created a forum (The Wilshire Investment Group) to share various Real Estate concepts, free of charge to all that are interested in trying to improve their lives. 38

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The only thing I ask them to pay is attention. The body of this group consists of developers, architects, attorneys, insurance brokers, mortgage brokers, investors, and people with a novice to sophisticated interest in the wealth process, through residential real estate. Hooking my battery up in series with this group once a week further enables me to resolve the many problems I encounter daily brokering and investing in Real Estate. To the degree that one learns to solve problems affects his income to that same degree. Amen. With this type of brainstorming participation, it is difficult to stick to a structured course of information, however I do have one and it is as follows. CLASS CONTENT

1. A BRIEF EXPLANATION OF THE MAJOR REAL ESTATE CONCEPTS. Mortgage Broker/Mortgage Banker/C.F.L. Broker/Loan Processing/Loan Underwriting Primary Market/Secondary Insurance/Fannie Mae/Freddie Mac/Gennie Mae/H.U.D./Title Company/ Title Insurance/Hazard Insurance Broker/ Speculator/l nvestor/Developer/ Contractor/Limited Partnership/ Revocable Living Trust/Irrevocable Trust/Family Limited Partnership/Escrow/Leverage/ 39

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© Copyright 2002 ALL RIGHTS RESERVED Freddie Burton

No part of this publication may be reproduced, transmitted, transcribed, stored in a retrieval system, or translated into any language or computer electronic, mechanical, magnetic, optical, manual, or otherwise, without the prior written permission of Freddie Burton

From A Plain Coon To A Tycoon

1031 Exchange/Due on Sale Clause Foreclosure Process/Adverse Possession! Short Sale/Management Company/ Buying and Selling Trust Deeds/ Hypothecating Trust DeedsNarious Loans/ Limited Partnerships/Appraisal Process (Single Family and Multi-Family)/Sec. 32 (new Predatory Law)/A1llnclusive Trust Deeds (A Wrap )/Sub S Corporation/C-Corporation

2. CALCULATING THE FRONT AND BACK END Calculating the monthly principal, interest, taxes, insurance, and PMI when applicable: adding the long term obligations and comparing the relationship with the borrower's income monthly income.

3. OMNIFACTORS One number, such as 960 divided into the sales price, will always yield the monthly property tax payment. This system will allow you to determine the possible loan amount if you know the borrowers monthly income

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4. CLOSING COST The various cost involved in a transaction to determine the net. Also, this session examines the credit report, mortgage ratings, and income ratios in order to determine the quality level on the marketplace.

5. VARIOUS PROSPECTING This class shows you how to promote the lending business including questions and answers of a typical telephone conversation.

6. VARIOUS LOANS This is a brief description of the typical financing tools; Cal Vet, FHA, Fix, Adjustable, Home Equity, Swing, Hard Money, 125% L.TV., Commercial, Construction, and my own One-Day Loan.

7. FORECLOSURES Leam to locate property in foreclosure, make loans, and acquire.

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8. ACQUISITION STRATEGY Two hours of how to utilize this information to acquire and protect a portfolio of residential real estate.

9. THE APPLICATION PACKAGE Instruction in the prescribed manner of filling out a 1003 Fannie Mae application, including the disclosures and vertications.

To put THINK AND GROW RICH in it's proper prospective, I compare Andrew Carnegie to Moses as they both developed a code of ethics for man's salvation; Moses saving moral souls and Carnegie their economic souls. Both took decades to obtain their professed universal truths, Camegie from Dr. Hills' twenty years of interviewing 500 prominent men, Moses from the burning bush. Both men's creed, if adhered to will produce a higher level of spiritual awareness, health, and prosperity.

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FINAL THOUGHTS

Old age is coming your way, so don't let it catch you old and poor, sitting around waiting for Lady Luck to deliver the lottery, because luck is where opportunity meets preparation. The following bulletin may be of some assistance in preparing what old age is about to bring you.

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-BulletinSENIORS are the NATION'S LEADING CARRIERS OF AIDS! Hearing AIDS Band AIDS Roll AIDS Walking AIDS Medical AIDS Government AIDS Most of all Monetary AID to their kids The golden years have come at last- I cannot see, I cannot pee, I cannot chew, I cannot screw, My memory shrinks-my hearing stinks-no sense of smell- I look like hell! My body is drooping-got trouble pooping. The golden years have come at last.

The GOLDEN YEARS CAN KISS MY ASS!

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TO THE ASPIRING INVESTOR

To the aspiring investor I suggest that real wealth is obtained by investing time and energy into developing personal friendships. Some people would respond that they already have friends and that they are in their back pocket, to which I take issue. I argue that money is an inanimate object and does not have the ability to rationalize, and surely won't buy life's greatest experience, LOVE. And when that friend leaves the relationship, he can not be replaced, therefore, making that friend priceless beyond material wealth. I consider an investment in a friendship my most cost effective investment, and it can be accomplished with a smile, and a handshake; the best "no money down" deal ever. My primary purpose for establishing this relationship is to promote MUTUAL LOVE and RESPECT. With those two elements comprising the heart and soul of our relationship we can conquer the world and change it into the friendly place it should be whilste our cups runneth over.

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Freddie Burton

DEDICATION

I dedicate this book to my supporting family that are in my presence everyday of my life, for we live and work together in the same apartment building. Their love and support provides the driving force to motivate me to become a better human being; for I am truly a lucky man to have them by my side.

From A Plain Coon To A Tycoon Freddie Burton

PREFACE My name is Freddie Burton. It was my parents that really brought me into prominence; they were in Iron & Steel; my mother iron and my daddy steel. I also used to be a lawyer down on the docks where I took cases off of boats. Now I am a landlord; it's not the easiest job in the world, but it is easier than getting up in the morning and going to work every day. Owning those apartment buildings did make me a lot of money that may not buy me happiness, but it did buy me a Rolls Royce to ride around and look for it.