Welcome to the Multifamily Apprentice Program Skillset Session Lance Edwards Tip: If on a land line, please turn OFF your cell phone or place it 10 feet away.
Apprentice Contact Information Email: Apprentice@fcgllc.com Fax: 713-758-0312 (Apprentice only) Fax: 713-476-0296 (General) Add ClientCare@fcgllc.com & Apprentice@fcgllc.com to your email address book.
Orientation Tonight is the Skillset Call Next week is the Mindset Call House Rules: Toggle *6 on your phone to mute / unmute OR Type in your question on the panel. This call is reserved for Q&A + Deal Review Direct Client Care questions to the office
Announcements New Apprentice Instructions 1. You should be working from your Apprentice QuickStart Guide (emailed to you when you joined). 2. You should be reviewing the weekly webinar videos on the Apartment Cookbook System!! 3. You should be doing the weekly assignments on skillset and mindset assigned on the videos and slides/notes. 4. Use the 100 Point List to gauge your progress. 5. Contact the office with questions.
Announcements www.multifamilysuccessclub.com See the membership site for webinar info (Copy & paste the link to your browser) If you have not received your log-in, contact the office.
Apprentice 4G 100 Point List Check List of Best Practices Silver Gold Platinum Gauge and benchmark your own progress Silver You can easily recognize a real deal. Gold You can find deals on your own & make offers Platinum You can get a property under LOI
Apprentice Platinum Program 1. Objective: Get you from LOI to $. 2. Program: Lance will work very close with the Platinum Apprentices in closing your deals (wholesale or hold). 3. Setting: 1 hour small group telecall 4. Schedule: TBA
Platinum Group Expectations Platinum members are expected to share and contribute resources. Not a one way street. Platinum members will provide a written and audio testimonial upon closing. Platinum members will give back and contribute their experiences on regular Monday night calls. May be voted off the island if not contributing on Platinum calls. Submit your application with signed 100 Point List & signed LOI to the office.
Apartment Wealth Factory Earn While You Learn (limited to Apprentices only) Submit your deal to Apartment Wealth Factory (AWF). Wholesale deals only. AWF closes the deal for you. AWF puts up the earnest money & legal fees. AWF negotiates with the Buyer & Seller & all parties. You are a member of the team. You participate on conf calls & emails. You receive 20% of the profits after expenses. Earn another 20% if you find the Buyer.
Range of Focus for Wholesaling 20-200 Units (170 units has been considered optimum) Easier to find individual private buyers Bigger (> 200 units) means syndicate groups of hedge funds as potential Buyers
Apartment Wealth Factory Rules of Submittal 1. Submit deal to Apprentice review BEFORE submitting to AWF. Receive your Deal Analysis Recommendations. a) Deal Review will indicate if the deal is AWF qualified. 2. Package submittal to AWF (max 2 deals per time): a) Complete the entire Deal Analysis Sheet b) Submit Deal Analysis Sheet write Apartment Wealth Factory on top c) Submit your Deal Analysis Recommendations email d) Submit the Rent Roll e) Submit the Profit & Loss
I m looking to buy Houston multifamily Class C or better 40-170 units Turnaround value play 50+% occupancy Make-ready rehabs OK <$20K/door all-in Motivated seller; REO OK.
Apartment Wealth Factory Communication 1. You receive email updates at the following points: a) Receipt of entry b) Submitted for preliminary review of RR & P&L c) Submitted for final review of RR & P&L d) Deal rejection 2. You receive phone updates at the following points: a) Deal Acceptance 3. NOTE: We prioritize deals based on the strength of the deal and relative deadline.
NOI Accelerator Virtual Boot Camp How to Become an Apartment Turnaround Specialist Starts October 13 Multifamily Apprentices attend FREE Contact the Office to register
Announcing the Next Multifamily Success Workshop May 15-16, 2010 Dallas-Ft. Worth FREE Morning or Afternoon Session How to Flip or Buy Apartments Using None of Your Own Cash or Credit www.apartmentwealthmachine.com/workshop.html
Announcing the Next Multifamily Success LIVE - Houston December 3-5, 2010 Apprentices re-attend FREE $500 Off for Apprentice (2 tickets) $250 Off for Apprentice (1 ticket) www.apartmentwealthmachine.com/live.htm Or call my Training Coordinator @ 832-882-1039
Going Social www.apartmentwealthclub.com www.twitter.com/lance_edwards www.linkedin.com/in/lanceedwards www.apartmentwealthinfo.com
Referral Program How to Earn Money Today Apartment Wealth Factory Referral Program: 3 & FREE - Refer someone to my LIVE Boot Camp and earn 1 st referral $200 2 nd referral $300 3 rd referral $500 10 for 1 Refer someone to my list and earn 10% on their purchases for 1 year. Refer friends to www.apartmentwealthcircle.com (using your email, Facebook, LinkedIn, Twitter)
I Have a Few Quick Questions
Let s Take Some Questions Questions? Aha Moments? Comments? Press *6 or enter through your Control Panel
Agenda Welcome & Introduction Theme Compile Questions Deal Review www.firstcornerstonegroup.com
Who has deals to review?
Success = Skillset + Mindset + Community Instant Income Academy TM Turn-Key Income Generation Multifamily Raising Private Money Notes Level 3 Personal Mentoring Multifamily Partner for Profits RPM Partner for Profits Notes Partner for Profits Level 2 Group Mentoring Multifamily Apprentice Keys to the Vault Club Apartment Wealth Factory Notes Apprentice Level 1 Biz Start-Up Instruction Home Study Virtual Boot Camp LIVE Boot Camp Home Study Virtual Boot Camp Home Study Virtual Boot Camp
100 Point List Feedback 15 Areas of Mastery 1. Skillset Mastery 2. Financial Freedom Plan 3. Mindset 4. Deal Analysis 5. Deal Flow Brokers 6. Deal Flow Direct Mail 7. Systems 8. Marketing for $ - Fund Raising 9. Making an Offer 10. Contracting 11. Marketing for $ - Earnest Money 12. Marketing for $ - Raise 1 st Financing 13. Marketing for $ - Private Money 14. Monetize the Deal Buy & Hold 15. Monetize the Deal - Flipping
Making an Offer: Letter of Intent (LOI) Only make offers and accept signed counter-offers in writing. NO verbal negotiation. No email negotiation. Go to the Letter of Intent
Schedule of Closing Negotiate & execute LOI x days Negotiate & execute Contract 10 biz days from executed LOI Deposit Earnest Money 3 business days from executed contract Inspection Period 45 days from executed contract date Financing Period 60 days from executed contract date Closing 60 days from executed contract date, with automatic 30 day extension if requested.
Let s Take Some Questions Questions? Aha Moments? Comments? Press *6 or enter through your Control Panel
Celebrating Aha Moments Who had an Aha Moment this week? Spoke to their first broker? Spoke to their first seller? Sent their first letters? Got a signed LOI? Found a new funding source? Discovered something new about themselves? Discovered something new about this business?
Questions Question & Answer Session Who sent me a deal or LOI in the past 2 weeks? Anyone feeling Stuck? Unsure? Fearful? Compile a list of questions. Compile a list of deals to review.
Deal Review- The Formulas Reference: Module 2 Analyzing Deals 1. NOI ($) = GSI Vacancy OE 2. Cap Rate (%) = NOI * 100% / Price 3. Price (Value $) = NOI / Market Cap Rate 4. OE / GSI Ratio - % (45%; or 55% for ABP) 5. Price / Door Ratio - $/unit or $/door Definitions: ABP = All Bills Paid GSI = Gross Scheduled Income - $/yr NOI = Net Operating Income - $/yr OE = Operating Expenses - $/yr
Deal Review - Format I ask the same questions: # of units Ask Price $ / Door Unit Mix Rent for Units Vacancy GSI NOI (actuals) Cap Rate OE / GSI If you have a special deal, you can sanitize it or submit for personal review. Who has a deal to review?
Who Has Needs & Wants?
End of this Apprentice Session See you Next Week Same Day & Time 1. Review your weekly video from the Apartment Cookbook System 2. Do your weekly assignment. 3. Monitor your progress on 100 Point List 4. Deal Flow, Deal Flow, Deal Flow 1. Upon exit, please fill out the survey. 2. Please add ClientCare@fcgllc.com to your email address book (now).