Apartment Wholesaling Mastery Virtual Boot Camp Session #3 REMINDER: Dial in to the conference call number on your webinar screen. Lance Edwards Tip: If on a land line, please turn OFF your cell phone or place it 10 feet away. Session #2 Topics (Last Session) Homework Review Instruction Section 2: Qualifying & Analyzing Apartment Deals -- Part 2 Section 3: Finding Deals Q&A Homework Assignment Homework Review Let s Take Some Questions 1. Listen/read Modules 4 & 3A-B in Multifamily Success Home Study System. 2. Practice analyzing 3 more deals on www.loopnet.com using the Deal Analysis Sheets. 3. Call & speak to at least 2 brokers. 4. Bring your comments and questions next week. 5. Optional: Download RealCoach QuickStart Audio at www.realcoachtrial.com; Create your daily mindset routine. Questions from last session? Aha Moments from last session? Comments? Press *6 or enter through your Control Panel Curriculum Session #3 Agenda Session #1 How to Recognize a Deal Session #2 How to Find Deals Session #3 - How to Create Deals & Attract Buyers Session #4 Closing & Getting it Done Homework Review Instruction Section 4: Structuring Your Deal Section 5: Finding Buyers Q&A Homework Assignment Special Announcement(s) Each session is 9:00-11:00 PM Eastern but I may go over to take questions. I will provide homework at 11:00 PM
The Wholesaling Process Section 4 1. Find the Deal 2. Qualify It 3. Get it Under Contract 4. Find the Dollars (Buyer) 5. Qualify Them 6. Assign the Contract to Buyer 7. Buyer Closes 8. You Collect Assignment Fee This is Tonight s Focus Structuring Your Deal How to Structure Your Purchase Offer for a Quick Sale Reference: Module 3 in Home Study System Funding Deals 2 Schools of Thought Structuring Your Purchase Offer Example Which Would Be Easier to Assign? School 1 Negotiate lowest price for max assignment fee Make all CASH offers School 2 Negotiate best terms for easy close & assignment Pay higher price for financing terms (less cash) When starting out & until you have a Buyer s list, I recommend School 2. You want to be a creative financier. Price: $1 Million $1 Million Cash Which would pay a higher assignment fee? Price $1.1 Million $275,000 Cash $825,000 New Bank Mortgage Price $1.1 Million $165,000 Cash $110,000 Seller Finance $825,000 Assumed Mortgage Strategy: Attract Buyers Like a Magnet Raising Private Money Formula Think like a Buyer. Use creative purchase strategies to place the property under contract: Assumable Mortgages Seller-Financed Mortgages Own Nothing. Control Everything. Make it as easy as possible for the Buyer to gain Control of the Property. Sell your creative contract. The Easier it is for Your Buyer to Buy, the Easier it is for You to Sell Your Contract for a Premium, Quickly. 1. Predisposed 2. Control 3. Low Risk 4. High Return You Need to Think Like a Buyer-Investor Return of Capital Before Return on Capital
Predisposed Sources for Funding Your Deal Banks Banks Seller Private Investor Real Estate Broker You Buyer You are the Conductor - Orchestrating the Deal to Closing National Banks Community Banks FHA (non-rehab & rehab) Found thru Commercial Mortgage Brokers Traditional Bank Finance Model Key Predisposed Source Seller Assumable Mortgages 20-30% down payment 70-80% new bank financing 6% interest 30 year amortization 5 year balloon or rate adjustment (Recourse vs Non-recourse) Non-recourse $2 Million loan & above Lower risk to Buyer Assumable Mortgage Always ask Is the loan assumable? 1% transfer fee Terms can be very good <6% interest Ask, When is the note due? Conduit loans Great interest rate (< 5.5%) but Has to be assumed. Cannot be refinanced. Ask, What is the prepayment penalty? Your Deal Analysis Sheet asks if the loan is assumable. Key Predisposed Source Seller Seller Financing Seller Financing Always propose they finance at least 10% of the purchase 2 nd mortgage Offer 2x prime rate (7%), interest-only, 5 yr balloon Even better is deferred interest Deferred down payment Very similar to Seller financing Ex: 1 year deferral of down payment or pay over 12 months My 1 st Deal Small Apartment The Secret to getting this I asked! 100% Seller Financed 6% interest 30 year amortization NO balloon
Student Example Jon Perry Key Predisposed Source Seller Sophisticated Lease-Option 42 unit distressed Bank REO Purchased & closed for: $210,000 ($5000 per door) 95% bank financing 6% interest-only NO Balloon The Secret to getting this he asked! What if the property is upside down? (Seller owes more than the property is worth?) Example: Mortgage balance is $1 Million Value is $850,000 Strategy: Own Nothing. Control Everything. TM Own Nothing. Control Everything. TM Bonuses 5 Year NNN Master Lease Situation: Low occupancy; Needs moderate rehab & rent increase. Out of state Owner. Option to Buy for $1 Million Look for this on the Resource Vault: BONUS 3: Offer Letter - Own Nothing, Control Everything. Private Investor (for rehab if needed) $50,000 Reposition, raise income & hence value to $1.3 Million. Buy for $1 Million or Sell the option. Let s Take Some Questions Section 5 Questions? Aha Moments? Can you do this? Finding Buyers How to Find Qualified Buyers Who Can Close So You Get Paid Press *6 or enter through your Control Panel Reference: Module 3 in Home Study System Funding Deals
How to Find Buyers What Are We Looking For? Put on your money glasses Intersection of 2 Things: 1. Interested Buyer 2. Can Close (Have Funding Capacity) Ask: Who is Predisposed to Want to Buy this Deal? What We Do NOT Want Finding Qualified Buyers No Bird Dogs No Nothing Down Buyers No Wanna Be s No Newbies No Tire Kickers The Secret is MASSIVE ACTION Ask: Who is Predisposed & How Do I Get Access? Step-By-Step Cook Book Finding Qualified Buyers Advertising for Predisposed Buyers Gaining Access (Off-Line) Tools: 1. Internet 2. Voice Box 3. NDA / Non-Compete 1. Advertise for Buyers 2. Have them sign NDA 3. Present the Deal 4. Qualify Them 5. Negotiate their Offers 6. Orchestrate thru Closing Ads Newspaper Local Large cities Flyers Direct Mail Real Estate Clubs IRA Networking Events Commercial Real Estate Groups Apartment Associations Real Estate Auctions Commercial Brokers Mortgage Brokers 1031 Exchange Agents Money Intermediaries Property Mgmt Co s. Ask for Referrals: Who do you know who would be interested in buying an apartment like this?
Bonuses Advertising for Predisposed Buyers Gaining Access (On-Line) Look for this on the Resource Vault: BONUS 4: Sample Marketing Flyer for Real Estate Auctions www.craigslist.com Listing Services www.loopnet.com www.commercialwebsource.com www.commercialiq.com www.realprospex.com www.buyincomeproperty.com Google Apartments for Sale LoopNet: Big Board Email services Social Networks: www.linkedin.com www.crepig.ning.com Google Groups Advertising for Predisposed Buyers Automatic Systems 24/7 Step 1: Setting Up Your Voice Box 1. Set up a Voice Box 2. Record a 2 Minute Message 3. Direct ads to the Voice Box 4. The message directs qualified buyers to call you. ( Proof of funds required with all contracts. ) We are managing the lead generation funnel. FREE Voice Box www.simplevoicebox.com Local Phone Number re-directs www.my1voice.com Motivated Seller. 10 Unit Apartment for Sale at discounted price. 24 Hr Msg: 281-555-1212. Ad Templates Voice Box Message Stable Priced to Sale. 50 Unit Apartments. Stable income. Mgmt in Place. 24 Hr Msg: 281-555-1212 Postive Cash Flow. 50 Unit Apartments. Takeover. Priced to move fast. 24 Hr Msg: 281-555-1212 Needs Work Fixer-Upper. 50 Unit Apartments. Priced to move fast. 24 Hr Msg: 281-555-1212 Value Play Opportunity. 50 Unit Apts. Discounted price. 24 Hr Msg: 281-555-1212 Keywords: Priced to Move, Discount, Cash Flow, Rehab, Motivated Seller, Fixer Upper, Value Play, Opportunity 1. Do not give away the address or any way to identify the property if it s listed already. 20 units in Memphis, Tennessee 2. Just provide enough info to generate a call. 3. Make it keyword-rich. 4. Qualify them by saying at the end, Serious buyers or agents only. Proof of Funds required with a contract. See the Voice Box Script Template.
Protecting Your Deal Executive Summary 1. Do not disclose the location until you have a Non-Disclosure / Non-Compete Agreement signed (NDA). 2. Prior to an NDA, you can provide an Executive Summary on the deal. 3. After the NDA is signed, you can provide the Financials and a copy of your Contract. See the NDA. Description of Project # units, Class type, City & State Opportunity for a Buyer High cap, Rehab, Raise rents, etc. Financial Projection (Pro-Forma) Special Financing Assumption, Seller Financing, Cash requirements If it s a heavily advertised project, don t divulge the identity too much. Bonuses Qualifying the Buyer Questions to Ask Look for this on the Resource Vault: BONUS 5: Sample Executive Summary Before Contract Experience? Funding capacity? Funding source? 1031, own money, Line of Credit, partner money, JV? Will you be able to show Proof of Funds with an offer? What are you looking for? (Do they know?) With Contract Proof of Funds required with contract Bank Statement Line of Credit Statement No Pre-Qual Letters Negotiating Let s Take Some Questions Ability to close is most important Speed and certainty that s what we value. Unlike brokers, we have deadlines to close. Questions? Aha Moments? Can you do this? Press *6 or enter through your Control Panel
Homework Assignment End of this Session 1. Listen/read Modules 3C-G & 5 in Multifamily Success Home Study System. 2. Practice analyzing 3 more deals on www.loopnet.com using the Deal Analysis Sheets. 3. Call & speak to at least 2 new brokers. 4. Bring your comments and questions next session. 5. Optional: Download RealCoach QuickStart Audio at www.realcoachtrial.com; Create your daily mindset routine. See you Next Week Same Day & Time Please answer the brief survey as you exit the webinar. Thank you. Multifamily Apprentice Program Multifamily Apprentice Program Apartment Wealth Factory Special Offer to Virtual Boot Camp Students Success = Skillset + Mindset Integrated coaching program Master Mind Model Apartment Cookbook Video System Continuous & on-going support Minimum of 3 months From your home or office Bi-weekly mindset calls Bi-weekly skillset calls Group Deal Review Personal Deal Review 3 1-on-1 calls per month Personal phone & email support Recorded for you 5 Types of Leverage Apprentice Resource Vault MultifamilySuccessClub.com 1. Other people s money 2. Big ticket deals 3. Business 4. Apprenticeship 5. Master Mind Group 12 Months of Past Deal Review Videos ($2997 Value) 12 Months of Mindset Session Videos Multifamily Success LIVE Videos (digital) ($797 Value) 100 Point List of Best Practices
Prerequisite Apprentice Program Price Multifamily Success Home Study System OR Multifamily Success LIVE You Qualify!! Integrated Skillset & Mindset Coaching Grounding Material Fee $3500 Skillset Coaching $500 / month Mindset Coaching $1000 / month $3500 + $1500 / month $1297 + $497 / month Virtual Boot Camp Special for Apprentice Apprentice $797 + $497 / month (min 3 months) 90 Day Single Payment Option $2597 $1997 Valid thru the Virtual Boot Camp Apprentice Testimonials Better than Risk FREE Guarantee Lance's program is the most comprehensive of any on the market plus he is there for his students week after week so you are not left to do it all alone. Dan Badinghaus Lance, thank you for providing a simple, cutting edge, turnkey environment that teaches us how create and amass great wealth through Multi-Family Real Estate. Jim Craig Sign up Test drive the first 30 days. Join the Skillset Calls, the Mindset Calls, see the Deal Review, get your 1-on-1 calls Download the Resource Vault of materials, including the 100 Point List. If it s not for you, notify my office within 30 days and get a 100% refund no questions asked. And keep all of the downloaded material FREE. It s Up to You Now www.apartmentwealthmachine.com/reward.htm Or Call my Training Coordinator at 832-882-1039 (He s available right now). Virtual Boot Camp Special for Apprentice Apprentice $797 + $497 / month (min 3 months) 90 Day Single Payment Option $2597 $1997 Valid thru the Virtual Boot Camp