MULTIFAMILY INVESTING ACADEMY’S

LIFETIME APARTMENT INVESTOR SERIES GET PAID AS AN INTERNET APARTMENT DEAL FINDER

BY CHARLES T. DOBENS, ESQ. MULTIFAMILY INVESTING ACADEMY, LLC

For questions contact support@getrapidhelp.com Financial Success Institute LLC

PREFACE

Here’s the problem.

In my law practice, I deal with essentially two types of multifamily clients on a daily basis.

Some of these are new investors looking to get into their first multifamily property and need help

getting from the start to the finish line of the transaction. These clients are a lot of fun. They have

no idea of all the things that need to be done to make the transaction a success and rely heavily

upon the expertise of my staff to keep them on solid footing.

The other type of client are those that took a few courses, read a few books, figured that if

the guy down the street can own apartments, so can I and then jumped head first into multifamily

investing because someone told them that they better act fast because there has never been a better

time than today.

In no time at all, they got tied up in a deal that they never should have done and then found

themselves in a situation that they need to get extricated from as painlessly as possible. That’s

when they call me.

My heart breaks for these people. If only they had spoken to me before they did the deal, I

would have been able to show them where the mines were and either get them through to the other

side safely or tried to keep them out of the fields altogether.

Unfortunately, these distressed clients pay a lot more money to have their problems solved

than those clients that come to me before they sign their first contract. It’s funny that many of them

get into this business thinking they are going to acquire distressed multifamily property only to

find out later that they are the ones that are in distress.

Tell me if this describes you and your investing experience to date. You just paid thousands

of dollars to attend some three-day weekend seminar taught by a silver-tongued “expert”. There

has been absolutely no talk of things that can go wrong in this business; only talk about how

someone once found a deal that made them a king’s ransom. Also, you heard over and over that

“You can do this!”

If that sounds familiar, it is because that is the formula that all of these “gurus” use. Don’t

worry. It is designed to elicit the response that you gave.

You may have heard them say at the seminar as it relates to your investing career, "Go big

or go home." Well, I'm here to tell you that is not accurate. How can you go big if you have never

even looked at deal before; never spoken to a broker or seller before; not even sure what to say to a

bank.

Let’s be real . . . .

You've got to do it right the first time and that will make all the future times go very

smoothly. There is no greater recipe to end your multifamily career early than doing a bad first

deal. Just don't do it!

That’s the problem. Now here’s the solution.

TAKE YOUR TIME, LEARN THIS BUSINESS AND DO IT RIGHT!!!

No business worth anything of value was built in three days. Build your real estate

investment business on a solid foundation and not on shifting sands. (Hmmm, where have we all

heard that before? It was good advice then. It’s good advice now.)

This program was written to help new investors take the first steps toward building a real

estate multifamily investment business. It is designed to teach you the basics of this business and

walk you through it step-by-step on a daily basis with little money invested but tons of education

learned.

We are going to show you each step for understanding who your customers are, building

your buyer database, finding the properties, and, most importantly, getting paid. The next manual

in this series, The Complete Manual for Wholesaling Multifamily Property, teaches you all the

steps for wholesaling a multifamily deal: analyzing, contracting and getting to the closing table or

just sitting back and watching your investor go through the acquisition process. Whether you are

sitting on the sidelines or you are an active participant in the process, the purpose of these

programs is to give you the confidence that you need in order to get started in this business and

build it correctly.

To be a success, you need to understand every step in the process starting with the very

first one. If you're going to take the time and learn, why not get paid for it as well? That's where

deal-finding gets to be a lot of fun.

Can you do this? Absolutely! It requires very little money. It does require time, though.

And when I say time, I mean time on a consistent basis, not in fits and starts. If you can give it the

time it needs and deserves than you can definitely do this business. We will show you everything

you need to know.

The way I like to look at internet deal finding is that it is kind of like the ‘gateway drug’ to

the multifamily investing business. It’s going to prepare you like nothing else for how to find your

first deal (stress on the word ‘your’). It's going to allow you to become a player in other peoples’

deals. You'll start off at the bottom and work your way up; just like every successful person that's

ever achieved any modicum of success. (With the exception of Donald Trump. He was born on

third base.)

You will spend the next several months, maybe years, building an incredibly powerful

rolodex of people that you will need to work with as you grow in this business; everything from

inspectors to brokers to banks to potential sponsors to other joint venture partners for future deals.

That's how this business works. It's all about relationships. There's no better way to start building

these relationships than to start taking it step by step through the process.

So let's get started today.

Charles T. Dobens

Boston, MA

02012

TABLE OF CONTENTS

INTRODUCTION - WHY MULTIFAMILY (DON’T TELL ANYONE THIS BECAUSE

THEY WON’T BELIEVE HOW EASY IT IS COMPARED TO SINGLE FAMILY

HOUSES)

CHAPTER ONE - WHAT IS INTERNET DEAL FINDING? MY SIMPLE STORY

AND HOW I GET PAID $275 PER HOUR TO MESS AROUND DOING WHAT I'D

DO FOR FREE

CHAPTER TWO - BUILD YOUR LIST WITHOUT BREAKING A SWEAT – EVEN IF

YOU AREN’T A “COMPUTER PERSON” CHAPTER THREE – HOW TO HIT A BUTTON AND GET YOUR MESSAGE

INSTANTLY WORKING FOR YOU (WHILE YOU HAVE SOME FUN OR ARE AT

YOUR J-O-B WAITING TO TELL THEM TO YOU KNOW WHAT) CHAPTER FOUR- NOW START EXAMINING DEALS THAT FLY IN BECAUSE

YOU'VE LAID THE GROUND WORK SO EASILY (AND EFFORTLESSLY) CHAPTER FIVE – HOW TO CLOSE YOUR DEAL AND GET PAID, EVEN IF YOU

HAVE ZERO EXPERIENCE, ZERO CASH AND ZERO CREDIT -- THIS IS THE

EASIEST PART OF ALL! CHAPTER SIX – TIME TO PUT OTHERS TO WORK FOR YOU SO THEY DO MOST

OR ALL THE WORK AND GET PAID ONLY WHEN THEY GET YOU RESULTS --

THIS IS MY "SIT ON THE BEACH WHILE YOU GET PAID" APPROACH APPENDIX – NCND AND FEE AGREEMENT

INTRODUCTION - WHY MULTIFAMILY (DON’T TELL ANYONE

THIS BECAUSE THEY WON’T BELIEVE HOW EASY IT IS

COMPARED TO SINGLE FAMILY HOUSES)

Picture your life one year, three years, and five years from now. Where are you? What are

you doing? How much property do you own? How hard do you plan on working every day? Are

you a hands-on owner or do you have another occupation and owning property is your retirement

nest egg?

When you challenge yourself and answer these questions honestly, then you will know

what type of business you should own and what type of properties you should be looking for.

Once that is determined, then you can direct your focus and begin looking at how to build that

business.

Step One – How Much Money Do You Need to Be Successful? Let’s break your goals down to a formula. Let’s say that you want to leave your

current job and own apartment buildings somewhere within an emerging market in the United

States. Before you even determine where that market is, the first question to ask yourself is;

How much income do you need to make the “break” from my current lifestyle?

Let’s say the answer is $150,000.

Ok, great. Now what? How do you get

from where you are today to $150,000 of

annual income all from multifamily

property?

That’s the beauty of multifamily;

as you will see, everything boils down to a

formula. Here’s what you need to know. On average, a “performing” multifamily property,

financed using conventional methods with the proper amount of leverage on it, should

generate approximately $2,000 of monthly income for every $1,000,000 of “owned” value.

ITEM NEEDED

A. Total Income Needed $150,000

B. Monthly Income (A/12) $12,500

C. $1MM of Value Equals $2,000

D. # of Millions Needed (B/C) $6,250,000

Therefore, in order to achieve an annual income of $150,000, you will need to acquire and

own $6,250,000 of property.

Now, let me explain this a little further (and this is what the “experts” don’t stress). I

said - YOU would need to own $6.25MM of property. If you syndicate deals and bring on

outside investors and take a share of the ownership, you are not going to ‘own’ all that

property and therefore the formula described above will have to be reduced based upon your

share of the ownership of the property.

Let’s use a real example. Let’s say you put an offer in on Shady Acres Apartments for

$5,000,000. The offer is accepted and you begin both the physical and financial due diligence

process. After a long discussion with your mortgage broker you determine that your cash

needs to close on this transaction are approximately $1.5MM. One problem, you don’t even

have the cash for the mortgage application.

No worry, you took a class on syndication and you are confident that your friends and

family can step up and invest with you to make it happen. In this example, they do. But in

order for them to get the returns that they are looking for, you have to trade away 80% of the

deal. That means that, in the grand scheme of achieving your ultimate goal of $150,000 in

annual income, you are now $24,000 closer to that goal becoming a reality. (20% times

$5,000,000 equals $1,000,000. That translates into $24,000 of annual income or $2,000 per

month). If this is a typical transaction, you will need to purchase close to $31MM of property

in order to achieve your goals. If you acquire property that has a larger cash on cash return,

then you can reduce what you share with your investors and you will need to acquire less

property. Try re-running your analysis using a 50/50 split and see what the total acquisition

value will need to be.

Step Two – What Type of Owner Do You Plan on Being? The next thing we need to do is to determine what type of property you are going to

acquire in order to achieve your goals. To successfully complete this goal analysis, you need

to have a handle on the different types of multifamily that you can acquire.

I have owned all types of properties – A, B and C quality assets (and probably D but I

have trouble admitting that). I can assure you, each one of them comes with its own unique

set of issues and problems.

One of the biggest fallacies that I hear many new investors talk about is how much

money they are going to make by buying a C-class property in a B-class area and then

reposition the property and cash out. Or it could be a B-class in an A-area. Regardless, they

never understand what repositioning really means because the most important part of

repositioning is never explained properly to them.

Just like with fixing and flipping single family homes, any problem can be fixed with

money. You can take a C-class property and drop $15,000 per unit in rehab expenses and

make it absolutely gorgeous with granite countertops and hardwood floors but that does not

make it an A-class property. The thing that brings value to a multi-family business is the lease

contract - the higher the rents, the more valuable the property.

The only way to get more valuable contracts/leases is to get higher-paying

customers/residents. The fact that a unit has been completely rehabbed and is absolutely

beautiful does not mean that a new tenant base willing to pay more in rent is set to move in.

Repositioning an asset has two components. First, you must turn the units so that a new class

of residents will want to move in and then you have to reposition the tenant base so that you

begin receiving the larger valued leases. The first part is easy. If you have the rehab money,

you can have a parade of contractors lining up to rehab your property.

But the second part of repositioning is the hardest part and the one that they never tell

you about. Repositioning will fail if you rehab every unit and then re-rent to the exact same

clientele that you had living there before. Here’s the success formula for repositioning. For

repositioning to succeed, you must purchase a property that, once rehabbed, will be the type

of place that a higher level of clientele will want to move into. It sounds simple but believe

me, if it was that simple, everyone would be doing it (including the seller).

When you hear yourself saying the words, or hearing the words, “it’s a C-property in a

B area”, stop for a moment and think like a B-class resident. Let’s say you are a newlywed

looking for your first apartment or you and your spouse are recent college graduates and have

entry-level jobs and are looking to save money to buy a starter home. Or you just graduated

from nursing school and you and your college roommate are looking for a place to live. These

are your B-class residents. You know these people. You may have been one yourself. Your

adult children may be in this position right now. What you need to do now is to think like

them.

When the broker takes you to look at the property and tells you that this is a great

repositioning opportunity; think like a newlywed, think like a new nurse and think like a

recent college graduate. Would you want to walk down the street late at night with your new

puppy or is the neighborhood not the kind of place you would want to be found dead? Is it the

type of location that you would want to have the new in-laws over for Sunday dinner or would

you be afraid they would have to step over police tape from the night before to enjoy your

yams?

You can change the property. That is within your control. You cannot change the

neighborhood. Leave that to ACORN (and we know how successful they have been).

Once I purchased a multifamily property that the broker told me was on the edge of a

neighborhood that was very desirable. Let’s say for the sake of this discussion, the area within

this city was called Eggtown. This property was on the line of Eggtown and North Eggtown.

North Eggtown was very desirable. It was going through a period of re-gentrification and all

the young people were moving there; new cool coffee shops, bistros, high-end retail. The

property that I was looking at was located in Eggtown but only one street away from North

Eggtown.

The broker described this property as being in North Eggtown when he was showing it

to me. The residents were less disingenuous. They said they lived in Eggtown. Where do you

think the newlywed and the nursing school graduates thought the property was located? They

saw the property as being solidly located in Eggtown and were not interested in the refinished

hardwood floors and new bathrooms that I had put in all the units. They would not be want to

tell their other roommates or their new in-laws that they have achieved such great success in

their young lives and now live in Eggtown. It wasn’t happening. The repositioning was a bust.

Owning different types of properties also changes your lifestyle. This is one of the first

issues I discuss with my clients when they are looking at buying a particular property. How

will owning this property change your life? Let me describe for you the lifestyles that I have

lived based upon the type of property that I have owned. Once you get a flavor for what each

property entails, you will have a better understanding of which type of asset you should be

focusing on.

Class A – Life is simple when you own A-class property. My ‘A’ property was built in

the late 1990s, is beautifully landscaped, separately metered utilities and is perfect for a

potential condo conversion if the world ever sees those again. The level of capital

improvements that takes place on that property is very low. I think the biggest unexpected

expense I get is a broken water heater.

More importantly, though, is the quality of residents that I have living there. The

police are never called for any crime issues and the last time they were called was because a

resident had a heart attack. For a three month period of time this year, this property had 100%

occupancy and 100% collections. For those of you experienced in multi-family ownership

reading this, you can close your mouths now. It is true. Evictions happen but very

infrequently and I have actually had some months where collections exceeded 100% of the

scheduled rent for that month.

If you are looking to get into multi-family investing as a sideline to your day job and

you would like to increase your chances of being successful, then only look at buying A-class

property. It is more expensive, the returns may be lower (because of the reduced risk), and the

up-front costs could be higher, but your lifestyle will not change and you will easily start

looking for another property just like it and grow your real estate portfolio accordingly.

Class B – This is where some of the best deals can be found for new investors. But

make sure you know that the property you are buying is truly a B-class property and not a C-

class in sheep’s clothing.

My ‘B’ property is a nice property. It is a place that I would not mind renting in if I

needed a place to stay. The residents are nice people, the majority of them keep their

residences neat and they enjoy staying there. There is some crime on the property but it is

usually isolated to problems within the household.

The issues that I have had with the B-class property primarily stem from its age. It was

built in the late seventies through the mid eighties. As a result of its age, things always need

to be fixed. Twice in the last two years I have had to have my plumber come in and replace

the water pipes from the street. (I love how it is never the city’s responsibility. Always mine).

This just means that when you are calculating your budget, you need to make sure that you

reserve enough cash to cover these types of expenses. B properties burn through cash much

faster than A properties. Be prepared. Regardless, if the property is purchased at the right

price, B class property can be a great investment.

Class C - C-class property is a tough property to own both from a physical plant basis

as well as a clientele basis. They are the oldest properties and therefore have the most upkeep.

There is always something going wrong with it. If you get into a C-class deal without having

a large bucket of money to start rehabbing units and keeping the lights on while you do that,

then you have just created a monster. That is the easiest recipe for disaster.

This is my personal experience. There are many investors that make a great living

investing in C-class property. I just learned early on what my limitations were. If I had a

contractor’s mindset, I would be able to walk into these types of properties and see dollar

signs all day long. Unfortunately, I don’t. I see the financials of a property and base my

decisions on that.

Step Three – Where Will You Be Looking for Property? So we know how much money you will need and we know what type of property you

want to achieve that income goal. Next, you need to know what marketplaces you will be

searching in for deals. Without getting into a deep discussion on how to analyze a market,

let’s say for the sake of this analysis, you decide that you are interested in buying B-class

property in San Antonio, TX. A B-class property in San Antonio mat trade for about $35,000

per unit.

As we determined at the beginning of this section, to achieve your income goals, you

need to own $6.25MM of property. If the average split with your partners is eighty percent to

them and twenty percent to you that means you need to acquire $31,250,000 of property

($6.25MM/.20) in order to hit your goals. If you have decided to look for B-class property in

San Antonio and the average price is $35,000 per unit, that means that you need to acquire

892 units to achieve your goal of $150,000 per year.

Wow! Does that sound like a challenge that you cannot attain? Does that sound like

you should give up on your dreams?

Absolutely not!!!! Please always keep in mind what you are doing. Simply, you are

starting today to create a real estate investment management company. Not only will this

company provide you with a fantastic lifestyle and the income that you need to survive and

thrive, but it is also growing an asset that most business owners would kill for.

Over the next five year period, working diligently a few hours every day, you will

need to acquire about ninety-units every six months. Can you do that? Absolutely, without

question that number is doable.

This business not only will increase in value because the debt is being retired more and

more every month by other people, but, the people who are retiring that debt will pay you

more to use that asset in ten years than what they are paying you today. You are winning on

both ends. Does that sound like a business worth building and worth building correctly? I

could not agree more.

Why is this discussion important as it relates to getting started in the Internet Deal

Finding business? Chances are that internet deal finding for multifamily property is a stepping

stone for you in your investment career. Chances are that you are learning this process so you

can one day buy your own property. If that is the case, then we will show you how to start at

the beginning, build it correctly and make it through every aspect of the process smoothly and

effectively.

CHAPTER ONE - WHAT IS INTERNET DEAL FINDING? MY

SIMPLE STORY AND HOW I GET PAID $275 PER HOUR TO

MESS AROUND DOING WHAT I'D DO FOR FREE?

The definition of Internet Deal Finding can essentially be broken down into one simple

sentence -Finding a property for a fee AND GETTING PAID FOR IT right from your computer.

I cannot stress that last part enough. This manual will highlight exactly how you get paid in

this business and why so many new investors fail in that regard. Remember, the number one job

for you is to get paid. You are not doing this for your health.

The Deal Finder is typically (but not always) paid by the buyer of the property for finding

that property for them. It's good for the Deal Finder, they get paid while they look for deals and it's

good for the buyer because he can sit in his office and wait for the deals to come to him. It’s a win-

win scenario for both parties.

As with any new business it's your responsibility to evaluate what your limitations are as a

business owner. The easiest way to do that is to take a true accounting and true stock of your time

limitations, your money limitations and your resources or expertise limitations.

How Much Time Will It Take?

Many times new investors will come at this business while they are working at another job.

This will be a part-time venture until they're able to get some cash flow going. This is even true

when you end up owning multifamily property of your own. Nevertheless, you need to make a

commitment to this business on a regular, systematic basis. It isn't the type of business you can

jump in and jump out of.

How much time do you have available to get started? What are the other obligations in

your life? Can you cut back on any of those obligations while you start building your real estate

investment management business? Can you add more time to your day? Can you get up earlier?

Can you stay up later?

Whatever you decide, schedule your week such that it includes regular time committed to

this business. You may end up asking friends, family and other people to invest their cash with you

in your deals at some point in the future. How much of your own time have you invested in this

business? Is it commensurate with their contribution?

How Much Money Will It Take?

How much money do you have to be able to put into this business? Now, if you say, "I

don't have any money," well, let's be realistic. To start any business you need money. And this

business, even if it is just on a shoestring basis, it will require cash.

This manual will show you how to get started on a shoestring. As time goes on, though,

you will need to have to start investing cash into your business. The deal finding business really

does not take much cash at all. When you take the logical next step to wholesaling of multifamily

deals, you will need to have cash or at least access to cash.

What Resources and Expertise Will It Take?

Now this is a key one that too many investors overlook. Let's be honest here. You've never

done this business before. You don't know what it takes to invest in multifamily property. This

business has been around since Moses was a baby. There have been studies and courses and

designations and college courses all taught on multifamily ownership, teaching you how to

evaluate, how to analyze, how to manage, how to run, how to buy, how to sell multifamily

property.

So let's be honest. How much experience and expertise do you really have in this business

right now? If the answer is, "I just read the book Commercial Real Estate Investing for Dummies,

by Peter Conti," (great book by the way, I highly recommend it) you might need to take things a

little bit slower. But that's okay; you can learn this business in the confines of your house and on

your time schedule and get paid to do so.

But commit yourself to that education process and very soon you will become an expert.

Every investor would love to have a Deal Finder who understands the business, understands how

to evaluate a deal and ultimately can get a deal under contract for an end buyer, is worth their

weight in gold. So take the time to get the experience and the expertise on your side and this

business will become very lucrative.

How Should I Protect Myself?

You are entering into the business world. You are holding yourself out there as an expert.

You are putting yourself within the stream of commerce. That stream is filled with sharks. How do

you protect yourself? The best and easiest way to protect yourself is to set up a corporate entity

that you do all of your business under.

That corporate entity can come in many different frames. Some of them are: corporation

(either a C-corp or an S-corp), limited liability company or a series limited liability company.

Those are typically the most common entities that we see nowadays in the real estate world.

I highly recommend that you set yourself up as an entity to protect yourself. It also gives

you a sense of something that you own, something that you are building, and something that you

are striving to grow and have become a valuable asset in your balance sheet.

If you need help in understanding which type of entity is the right one to get into, either

contact a lawyer or if you are one of the members of our off-market seminars that we conduct

twice a month, you can always discuss it with a staff attorney at the Multifamily Investing

Academy.

Setting Up an Internet Deal Finding System

This business is really two parallel tracks that need to be run on at the same time; finding

the properties and then finding customers to market those properties.

The marketing system that we're going to discuss is how to set up so that you can put on

autopilot and run on a consistent basis to find those customers. Before you even get started looking

at properties you must start building your customer list. You need to know your customer and have

them available when you find that first deal.

They taught me back in my early days of sales before I started practicing law, prospecting

for customers is like shaving, you can take a day off, but anything more than that and you start

looking like a bum. In today's day and age it is amazing how easy it is to set up a system and then

just let it run. But beware of what I'm saying or more importantly, what I'm not saying.

If you hear of any type of program with the words, "Done for you," remember this is your

business. This is not something you can delegate out to somebody else and hope for the best.

Building your customer database is probably the most important thing you can do. Do not abdicate

this responsibility.

Now, having said that, I'm going to show you how I set up my systems and how I outsource

the duties, but every morning I check to see the results of the previous day's effort. If something

doesn’t look right, I immediately review it and determine the best strategy to take.

I am not going to go through a discussion of all the different social marketing sites and

blogs, newsletters, ezines, that you will need to do, but I will tell you exactly how I use them to

build up my customer database for my clients who are looking to buy property.

The first thing you need to understand in creating a system is that your entire business

should be created around different types of systems. One of the best books to discuss this particular

topic is called E-myth Revisited by Michael Gerber. I highly recommend that you add that book to

your Audible list, to your Kindle list, to your Amazon list and get it and read it as quickly as you

possibly can, especially if you're just not starting to set up your business.

The whole purpose of what we're trying to do here is to start at the very beginning and

create a business that's going to take you through to the very end. Do it right at the beginning and

you'll have a very successful business down the road.

I am constantly on the lookout for new ways to add to my marketing system. At the same

time, I'm always looking at things that are not working in my system to reevaluate whether I need

them or not. You should always be doing the same. This is your business. Nobody else is

responsible for its success more than you are.

Now let me take you through the steps and the things you'll need to do to start implement

the system.

CHAPTER TWO - BUILD YOUR LIST WITHOUT BREAKING A

SWEAT – EVEN IF YOU AREN’T A “COMPUTER PERSON”

In any business, as it is in the business of deal finding, you have to always ask yourself the

question, "Who is my customer?" Understanding who that person or entity is will help you build a

successful business. It will also help you later on in the discussion regarding who you need to get

contracts executed from as well as understanding the process for getting paid.

The next question that you need to have a complete handle on is “What am I selling?”

What is the product that you are peddling? Typically, its information about a multifamily property

that you have taken the initiative on, found a motivated seller and know an interested buyer that is

ready, willing and able to close on that deal. Why is this information so valuable? Because at the

present moment in time, you are the only one that has access to both ends of the information

spectrum and can leverage that information for a profit.

So, as you can see, the two ends of this ‘information spectrum’ involve buyers and sellers.

Your job is to introduce the two parties and get paid. That’s it – find the buyer, find the seller and

get paid.

Let’s evaluate how to create that system that first finds buyers and implement it in your

new business. As in any business, you need to have as many customers as possible to be

successful. So how does a Deal Finder go about getting his customers?

In Seth Godin's book, Purple Cow, you learn that you need to have a clearly defined

market and work within very tight niches of customers. Sure, anybody can take an off-market deal

and throw it up on their Facebook page or post it on a LinkedIn group, but the chances of success

for the Deal Finder increase if he works within a very tight-knit community of customers that

know, like, and trust him and that he knows are ready, willing and able to close on a deal.

When these potential buyers receive an email from the Deal Finder with a new opportunity,

they know that what they are receiving is a quality product/opportunity. They will be more likely

to review that material and take action. That’s how you want other investors to perceive your

business. Taking action is what you want the buyers to do.

Let's look at the most basic things you will need to start building a list of buyers; a website,

an auto-responder and a blog or newsletter feature. If this seems like it might be too advanced for

you, it isn’t. This stuff is easy. Here’s how to do it (for free) (or nearly free).

NUMBER ONE: WEBSITE

You can get a website that costs you nothing. You can get a web address that costs nothing

as well. It's going to have a funny address, but if you're not willing to spend anything, that's what

you're going to get. Otherwise you can purchase a web address for very short money. My

recommendation is GoDaddy.com or Glob@ (globe@.com).

Here’s how to get a free address and website. Go to http://www.wordpress.com and follow

the easy instructions. You will be up and running in no time.

All of my websites are powered through Wordpress. It is becoming the standard across the

world of web designers. You can get a bare bones site or you can hire a web designer to modify

your Wordpress website and make it blast off the screen. We will discuss how to find these

designers for very little money later on in this manual.

What should your website look like? It does not have to be anything outrageous especially

if all you are using it for is lead capture. Check out this website that has done amazing things for

this info-marketer:

That’s all he uses. Let’s evaluate what he has on his site. First, a header with a navigation

bar, followed up with a paragraph about himself and finally there is a place where he can give you

something for free if you allow him to capture your email address. That’s it. That’s all you need.

Now if you are thinking to yourself, I don’t have a pretty header like his and I don’t have

anything to ‘navigate’ them to and I don’t have a free report, here’s all you need to do. Check out

the header for my law firm:

This cost me $30 to have a graphics artist in India put together. You can do the same thing. (Check

out www.odesk.com, www.elance.com, www.guru.com ).

What about the free report? No problem, either write one yourself or feel free to use my list

of Ten Websites for Off-Market Deals as a free give-away. Multifamily investors love it and it

works beautifully with an autoresponder.

That’s it! You can have this entire site for less than $100. Actually, you can have it put

together for $30 and use the $70 remaining to take your partner out for dinner.

NUMBER TWO: AUTORESPONDERS

You might think to yourself, what is an auto-responder? It sounds expensive and very

technical. If you thought that, you would be wrong on both counts. Autoresponders are easy to

create and you can get one up and running quickly and at no cost. Here’s how.

I recommend you check out www.mailchimp.com. It's free up to the first 2,000 names that

you have on your database and you can continually send newsletters out to your list for free (up to

a monthly maximum that I have never come close to exceeding).

Here’s how it works:

1. Set up a free account.

2. Create a list. In your case it can be called the “Apartment Buyers List”.

3. Choose the Autoresponder option at the top of the page once you have set up the list:

3. Set Up an Autoresponder Campaign. The easiest way to do this is to watch the

Mailchimp tutorial videos. They are fantastic and can take you through the process step by step.

Once you have that all set up, you need to take the HTML code that is created and place it

in your Wordpress website. PLEASE DO NOT THINK FOR A SECOND THAT YOU CANNOT

DO THIS! If you have set up on-line banking, then you can successfully do this. I guarantee it.

Now, you have to create the free report that you are going to send to people who sign up

with your autoresponder. As I mentioned before, feel free to use our list of Top Ten Websites for

Off-Market Properties. Here’s what it looks like:

NUMBER THREE: BLOGS AND NEWSLETTERS

Now that you have the customers signing up to find out what you have available in your

‘information spectrum’, you need to have a system that sends out information automatically with

the latest and greatest property offerings that you have available. It also doesn’t hurt if you include

some incredibly valuable information about the business that will get the reader to open your

email. Here is an example of the Off-Market Newsletter that I have used in the past. The response

that I get from these postings is fantastic;

This newsletter is through MailChimp which provides some very nice newsletter and blog

templates as well. Mailchimp’s services will help you set up newsletters, follow-up emails, as well

as systems that you can just put on auto-play and keep in contact with these new customers.

The other way to connect with your list as well as help increase your Google analytical for

your website is to put up blog posts that include great content. This is also all handled through your

Wordpress website. Here is an example of what a blog on a Wordpress site looks like:

Here is the content of the blog post. When you scroll down to the bottom of the page, you

can see some of the comments that people have posted about the article. The nice thing about

Wordpress is that any comments that are made have to be approved by you first. That way any old

girlfriend is not saying things about you that the whole world can see:

CHAPTER THREE – HOW TO HIT A BUTTON AND GET YOUR

MESSAGE INSTANTLY WORKING FOR YOU (WHILE YOU HAVE

SOME FUN OR ARE AT YOUR J-O-B WAITING TO TELL THEM TO

YOU KNOW WHAT)

Now you have the basic tools all set up to start generating leads for your business. These

tools in and of themselves will do absolutely no good if no one knows they exist. You now have to

go out there and market your product. Let me tell you the most important thing about business – all

business is marketing - plain and simple. Now how do you go about marketing to find customers

for your database?

You can take the easy way out and purchase an email database from a company that

promises you that they have the best email addresses out there in exactly the niche that you want.

You then buy the list and blast out thousands of emails to people and sit and wait. Not

recommended.

Or you can do it the right way and build it ‘organically’ – meaning from the ground up

using your own marketing efforts. That may seem like it will take forever and you need results

now, but keep everything in perspective. You are building a business and that takes time and if you

want it to be successful, you will need to do it the right way. When you do it the right way and

have people ‘opt-in’ to your list, the quality of the list skyrockets. Here’s what I mean.

The nice thing about Mailchimp is that you will be provided with all the necessary

analytics about your marketing campaign. Let me teach by example and show you how it worked

for me.

When I first set up all the necessary elements to the marketing of my services to build my

database of off-market prospects, I started posting blogs and articles about multifamily investing

and would sit back and wait for everyone to click on my free offer and give me their email address.

What really happened?

Nada. Nothing. Zip. Zilch.

Why was no one reading my posts or blogs and getting my free stuff? I had read a graduate

program level amount of material on blogs and ezines and how to build “backlinks” and blog posts

and I thought I had done everything correctly. The problem was that I was waiting for them to

come to me instead of me going to get them. Once I figured this out, my numbers and my business

changed dramatically.

Take a look at the growth of my database early on in its life cycle:

You may be wondering what happened to make it explode and why did the growth stop. I

will explain exactly how I made it grow later in this chapter. Once I reached a certain level, I

changed database vendors to one that provided more functionality than Mailchimp. You don’t ever

need to change from Mailchimp. It just worked out better for my business. That’s why, in this

example, the list topped off.

The point I want you to get from this is that you have to watch these numbers all the time

to determine how your business is doing. Business is all about the numbers. There are other

numbers that are equally as important as the number of subscribers you have and that is how

‘good’ are your subscribers. In this business, quality is more important than quality.

I once had a conversation with a internet marketer and asked him how big his list was. He

said he had several lists. I pressed further for a number of his largest list. He finally told me that

his largest list was over 70,000 email addresses. Wow, I thought, mine was tiny compared to his.

He went on to explain that that list had one of the worst response rates. When he sent out emails,

no one opened them. His best list was just over 2,000 names of people that he cultivated himself.

Quality beats quantity hands down.

Check out the following stats that tell me what a person on my database does when they

receive an email from me:

Understanding how your list compares with the industry averages gives you a better idea of

the quality and caliber of your database:

Category Organically

Grown List

Industry Average

List

Organic vs.

Industry

Average Unsubscribed Rate .2% per Campaign .2% per Campaign No Difference

Average Open Rate 27% per Campaign 16.4% per

Campaign 164% Increase

Average Click Through Rate 6% per Campaign 2.9% per

Campaign 207% Increase

This information tells me that the people on my list like to be on the list and probably look

forward to getting information from me. That is powerful.

If you take the time to build your database and business correctly, you can always expect

your list to be able to perform at these types of levels; well above the industry averages in all

aspects of your analytics.

Don’t Wait for Them to Come to You – Go Out and Find Them

To build a successful deal-finding business, you’ve got to be in front of people who need

your product. Facebook, Yahoo Groups, and LinkedIn are huge lead generation sites. Social media

is where millions and millions of potential customers go every single day—and you need to be the

number one person there. When you start being a Social Media Marketer you can generate new

leads for your business every day.

As I mentioned above, the change that happened for me was when I discovered that there

are tools and services available to people looking to grow their lists.

Are you familiar with crawlers? If you aren’t, I recommend that you start to learn about

them. They are the easiest way for you to capture email addresses in order to build your list.

A crawler is a software program that goes out to a particular website of your choosing and

looks for email addresses, captures those addresses and puts them on a database for eventual

delivery to a list service like Mailchimp, aWeber or iContact.

It doesn’t stop there. You should become more aware of this concept of email scraping.

Check out this group on LinkedIn that specializes in just the business of scraping for email

addresses.

The best crawlers are the ones that focus on a specific industry and then scrape email

addresses for that industry. For example, the new Google+ groups can be set up such that you enter

“circles” with other people that have the same likes. All those people that have chosen real estate

as a ‘like’ could be found within that circle. You can purchase a crawler that just searches on that

type of person. It’s called GPlus Super Circles

GPlus Super Circles solves two very common problems among internet marketers, good

search engine optimization and getting traffic. Google recently implemented personal search If

you have a large number of people in your circles you will be more highly represented in Google's

personal search. Using Google+ ‘bot’ to grow a large target audience will raise your social profile,

build trust of your website and bring more targeted traffic.

By providing you with a means to automatically add keyword targeted people to your

circles, the software allows you to build a massive, interested audience on the fly for any niche you

prefer. If you follow 300 people per day per Google+ account then you will have 300 X 7

days/week = 2,100 keyword targeted hungry members of your database added to your circle lists

every week.

GPlus Super Circles supports unlimited Google+ accounts which mean you can multiply

that 2,100 people by any number you'd like. If you had 100 accounts, that's an audience of 210,000

potential customers in just one week.

Another crawler that has been incredibly beneficial to finding people looking for deals is

the LinkedIn crawler. First, if you are not on Linked In, stop here, get up and running and started

on LinkedIn immediately. There is absolutely no better vehicle for connecting with exactly the

type of people you want to meet than with LinkedIn.

The first thing you will need to do is to set up your profile.

If you have any questions as to how to do it, there's a website called www.HubSpot.com.

That website provides ebooks that will show you exactly what you need to do for all of these

different types of marketing sites. For instance, they’ll teach you how to set up a Facebook page.

They'll teach you how to set up your LinkedIn biography. Go to www.HubSpot.com. The resource

material that they provide there is fantastic.

The beauty of LinkedIn is the groups that people have set up for particular businesses and

industries. You can join up to fifty-five groups. Here are a couple of links for videos that will help

you get started:

1. How to Create a LinkedIn Profile video:

http://www.youtube.com/watch?v=tV_7yAPnkFw&feature=results_video&playnex

t=1&list=PL14A6B01C83F050DE

2. How and Why to Use LinkedIn:

http://www.youtube.com/watch?v=KQs1P547vlU&feature=BFa&list=PL14A6B01

C83F050DE&lf=results_video&index=2

3. LinkedIn Training Video:

http://www.youtube.com/watch?v=9MPIJv-EVIU&feature=related

After you have entered all your pertinent information to set up your profile, at the top tool

bar, you will see a drop down listing starting with “People”. Click it and highlight “Groups”.

Type in a search term that applies to your group. Here are some that I use:

a. Real Estate

b. Commercial Real Estate

c. Multifamily

d. Apartments

e. Private Money

f. And so on, and so on

When you type in “Commercial Real Estate”, over 1,900 groups come up. Scroll down the

list and find the ones that work best for you. Keep in mind that LinkedIn limits you to the number

of groups that you can join. I believe the number is 40-50 groups. When you see one you like,

click on “Join Group”.

Once you have done that, click on “find similar group” and let LinkedIn find the group for

you. Once you join a group, set it up so that you get either daily or weekly digests of all the

activity in that group.

Here are some of the groups that I have joined and monitor every day:

Once you have set up your groups, now it’s time to turn on the LinkedIn crawler. Here’s

how the LinkedIn crawler works. Once you have it loaded on your system, enter your LinkedIn

username and password into the appropriate box and hit enter. Your LinkedIn account will appear:

After you are logged in, click on the Groups tab and watch all your groups pop-up:

Select a group that you would like to find members of. In this case, we will click on the

group entitled ‘First Time Multifamily Buyers’:

Then all you need to do is click ‘Scrape’ and let the robot do all the work for you. When

you are done, just dump the new email addresses into your email database and send the recipient

an email asking them to opt-in to your list. You always want to get their permission. That makes

your emails well-received.

The beautiful thing about this program is that it focuses specifically on those people who

are involved in those types of things that you are looking for. Check out the list of LinkedIn groups

that meet your needs.

Here is another tool that is available to you to help you announce to the world that you

have a deal available. It’s called the Social Bot and it was created by a good friend of mine. It is

designed to automate the process of finding groups and prospects on the internet that meet your

criteria. Just tell the software what you’re looking for and it will find them and then post your offer

in front of the people you want to be in front of (If you would like this product, just click on this

link. This is an affiliate link so the MFIA does receive compensation if you purchase it).

It’s as simple as point and click — type in your search term and the Social Marketing Bot

will go out and will find and post your offering on all of Facebook, Yahoo Groups, and LinkedIn.

It’s so easy anyone can do it! It’s a software program designed to get in there and get you massive

exposure with lightning speed!

Go to Yahoo.com and signup for their Groups. Any Groups that deal with real estate you

should sign up for. You're going to be marketing to those people that are members of that Group

once you start to find deals. You're going to be marketing to those people to get them into your

database. Go join as many of those Yahoo! Groups as possible.

CHAPTER FOUR- NOW START EXAMINING

DEALS THAT FLY IN BECAUSE YOU'VE LAID THE

GROUND WORK SO EASILY (AND

EFFORTLESSLY)

Believe it or not, there are many places on the internet that you can go to and find listings

of off-market deals. I will discuss several of them here. But here is the most important bit of advice

I can give you; the best thing that you can derive from these sources is one thing – Relationships!

If you go to these sources and nothing meets your fancy, strike up an internet conversation

with the people posting these properties. These are the people whose stock-in-trade will be off-

market deals. They know how the game is played and they are out there looking for deals that are

below everyone’s radar screen. Good people to know.

Here is a listing of ten websites that I have put together of off-market listings. Add them to

your favorites bar and check them on a regular basis. If you recall, these are also the websites that I

give away as free information when someone signs up for my list:

1. MFIA Membership Site

2. http://www.offmarketassets.com

3. www.Pace-Davis.com

4. www.offmarketdirect.com

5. www.AmericanCapitalInvest.com

6. www.underground-resource.com

7. www.cwcapital.com

8. www.trimontrea.com

9. www.linkedin.com

10. www.ocwencommercial.com

11. www.govreolistings.com

Already many courses have popped up teaching you how to do it effectively. There truly is

a science to creating your online presence. In order to get a handle on how to go about doing this, I

recommend that you go to www.youtube.com and do a search on the keyword “LinkedIn”. Many

LinkedIn consultants (yes, you read that correctly, there are LI consultants out there already) have

created how-to videos that really help walk you through the process, the right way.

Here’s a sample off-market property listing from LinkedIn:

The list of websites to find “off-market” deals that was provided earlier in this chapter

includes some special servicers websites that you should bookmark and check out on a regular

basis. Understand something, though, the properties that they have listed on the website represent a

very small number of deals that they are working on. More importantly, they usually represent

those deals that they could not pass off to their A-list and now you are getting a crack at it.

Let’s take a look at one special servicer’s website of foreclosed assets. As stated on their

site, LNR Partners is the world's largest commercial mortgage special servicer. They are the

industry leader in commercial loan workouts with market-leading due diligence and underwriting

processes and extensive knowledge of credit fundamentals that enable them to secure maximum

resolutions in the shortest amount of time for our investors.

More importantly than this description is the fine print that you will find on their site (hey,

I’m a lawyer. What did you expect?):

“The properties reflected on this website are managed or serviced by LNR

Partners, LLC ("LNR") on behalf of the record owners of those properties.

Certain properties on this website may also be directly owned by an affiliate

of LNR. In any case, LNR is authorized to act on behalf of the owners of these

properties and to offer these properties for sale. LNR is not a broker, agent,

broker associate or sales associate and is not acting in any such broker capacity

with respect to the properties reflected on this website. LNR is acting as a

principal by virtue of its role as manager of the entities that hold title to the

respective properties. This website provides a link to the broker that has

been awarded the listing* for each individual property and all communications

and inquiries should be directed to those brokers. LNR expressly disclaims any

liability or responsibility for acts or omissions of any third parties, including the

brokers identified on this website.” (Emphasis added.)

One of the responsibilities of a special servicer is to get the property off the balance sheet

of the lender. They do this by hiring brokers in different places around the country. If you see a

property on this site, get the name of the broker and contact them directly. Do not bother trying to

track down the person at LNR that is listed as the contact. They do not want to hear from you.

They only deal with their broker.

Let’s look in Kentucky:

I happen to know this Tate’s Creek property. It’s down the street from a property that I

own.

Let’s look a little deeper:

As you can see, they have it listed with Barry Swatsenbarg of Friedman Integrated Real

Estate Solutions. Let’s dig a little deeper and see what we can come up with for Barry:

So what did we finally come up with? The special servicer had listed the property with a

broker who happened to have 577 multifamily properties on their site including the one that we

were looking at. Not exactly “off-market” but it opened up a new avenue to find deals that we did

not know about before.

Remember, the focus has to be on finding deals that no one knows about. We just

successfully uncovered a strategy for finding sources of deals but not ones that are off-market.

Nevertheless, if you are doing everything you can to find your first deal, in addition to the methods

we teach in the future chapters, you will also have to do searches like the one I just walked you

through.

This is a sales job, no matter what way you slice it. The more people you ask to buy your

product, the more likely you will be a success. You have to look at a lot of properties, speak with a

lot of potential buyers and get a lot of rejections before you find the deal that meets all their

criteria.

CHAPTER FIVE – HOW TO CLOSE YOUR DEAL

AND GET PAID, EVEN IF YOU HAVE ZERO

EXPERIENCE, ZERO CASH AND ZERO CREDIT --

THIS IS THE EASIEST PART OF ALL!

What do you do when you find that property that meets all the criteria for investors on your

buyer’s list? It’s time to start the sales process. You now have to put that property out to your

entire buyer’s that you have a fee agreement with (we will talk about the contracts needed for this

business in the Appendix).

But how do you do it? Do you send out a blast email with bullet points? Do you call them?

Remember two things. First, you are in business so look like a business. Second, you need

to distinguish yourself from all others in the marketplace (remember what you learned from The

Purple Cow).

In the next manual about wholesaling, there will be a complete discussion and analysis on

how to create an Offering Memorandum for any deal you are doing. At the internet deal-finding

level, you will not need to get as detailed on the deal as that. Nevertheless, you will want to put

your best foot forward in order to get the deal closed.

Instead of reinventing the wheel, I recommend that you use the online service called

iAnalyzeREI.com. Here is the link. http://www.ianalyzerei.com/

Designed with a user-friendly interface, iAnalyzeREI is software used to produce a

complete income property analysis. Enter the information and click and the iAnalyzeREI program

will guide you step-by-step, from beginning to end. Once you have entered all of the information,

the analysis revision window will suggest improvements to make and allow you to modify your

data if needed.

An impressive and professional report will later be produced, containing a detailed analysis

of the property you are proposing to your list.

iAnalyzeREI can handle all sorts of income-producing Real Estate (Multifamily,

commercial, etc.). Moreover, the reports produced by iAnalyzeREI are well-illustrated to

accurately pinpoint the advantages of the proposed opportunity.

Multi-family or commercial properties can also be analyzed, regardless of their size, thanks to

special features that adapt to the building's type. For a residential lease, you should enter the

number of rooms, the apartment’s surface, the rent, included services, etc.

iAnalyzeREI produces professional and dynamic quality reports, filled with pertinent

information. The information displayed makes the report easy to read and understand, even for

novices.

If you want to add a personal touch, your picture and your company’s logo can also be inserted

in the document.

Each ratio is accompanied by a brief definition and the formula used to calculate it. Not only

does this software provide you with the most popular performance ratios, it goes beyond the return

rate on a down payment. It considers the crucial factors that will help conclude the most difficult

transactions. iAnalyzeREI can even calculate the return rate on the down payment with

capitalization and appreciation. You will have the exact figure for the property.

Here are some additional highlights of the program:

Sale Price Evaluation

This function is actually a calculator especially adapted to help you evaluate the sale price of a

building according to a requested return rate. This is a quick and easy way to appraise a

building’s worth.

Comparison

It is possible to simultaneously compare as many income properties as you want with

iAnalyzeREI to put emphasis on the important characteristics of each property. The

comparison report will allow you to make better decisions according to your priorities.

Financial Forecast

The investment is not profitable now, but will it be 2 years from now? Is it the right time to

buy? iAnalyzeREI paints a portrait of the investment and offers the possibility to see the

investment’s growth throughout the years thanks to the financial parameters specified by the

user. The financial forecast is done according to the inflation, the Income and the Expenses.

The taxes are automatically calculated if you want them to be, displaying the available liquidity

at the end of the year. Furthermore, you can even show the buyer the length of time it will take

before he recovers his investment, while considering the profit generated by the building, the

capitalization and the appreciation.

Whether you are a beginner or even an expert, iAnalyzeREI reviews your analysis for you. In

fact, the software will even recommend options to help guide you in the right direction.

What is the acceptable norm for such an expense? iAnalyzeREI will let you know! Endowed

with easy to understand symbols, you will know right away which values should be modified to

obtain a realistic analysis.

iAnalyzeREI is uncommonly flexible and this characteristic is portrayed throughout the

software. Look at the mortgages. You can add several different mortgages to finance a property

(balance of sale, 2nd mortgage, collateral) and this, under different conditions (interest rate,

payment frequency, etc). For the expenses, you can input as many recurring expenses as you need

(ex. Municipal taxes, insurances) and fixed expenses (ex. Roof repairs).

Need to send your report to your list? iAnalyzeREI enables you to instantly e-mail your report.

No more handling important documents or files. The best part is that you don’t even have to bother

signing-in on your personal e-mail account to do this! Increase your productivity and keep your

clients updated by allowing them to consult their reports when they want to. You could even

perform an online presentation with your client!

I am all about creating a business that you can run anywhere in the world. This tool allows

you to do just that. To take it one step further, you will also have the ability to post these leads on

your website. Take a look at the following screen captures from this program:

CHAPTER SIX – TIME TO PUT OTHERS TO WORK FOR YOU SO

THEY DO MOST OR ALL THE WORK AND GET PAID ONLY WHEN

THEY GET YOU RESULTS -- THIS IS MY "SIT ON THE BEACH

WHILE YOU GET PAID" APPROACH

Once you create the systems described above you can delegate the steps to an employee.

But wait, you don't have a lot of money! How can you start hiring employees to do all of these

things for you? Once again, the Internet makes this incredibly easy. Let me give you a personal

example.

I did not type this book. As a matter of fact I am dictating it into a free dictation software

program that I downloaded off of the Internet called Audacity.com. I then broke the dictation down

into the chapters. Then I went to a website where I could have people bidding on the task of

transcribing my dictation into a word document that I could then edit.

Within two hours of posting that job, I had over a hundred people from around the world

bidding on the transcription job, everything from $1.67 per hour from the Philippines to $66 per

hour in South Africa. You can do exactly the same with your marketing services.

You can go to websites such as oDesk.com, Elance.com, vWorker.com, 123Employee.com.

All sites are set up to allow you to outsource those particular tasks that you need to have done on a

regular basis but you just don't have the time or you just don't want to do it. It's easier for you to

delegate out to someone else.

If you evaluated your abilities in the previous chapter and determined that time is

something that you really don't have a whole lot of because you're working another job while

you're trying to start your internet deal-finding business, using an outsource vendor described

above is exactly what you need.

How would you like to go to work every day knowing you've got an employee in the

Philippines building up your customer database right now as you earn your living? It's a nice

feeling. And also let me just stress that these people are incredibly well qualified. Some of them

are even PhDs.

APPENDIX - CONTRACTS

Following is potentially the only contract that you will need to get paid as a Deal Finder. It

is really two contracts in one. It consists of language for non-circumventing and non disclosure as

well as a fee agreement between you and the party you are proposing the deal to.

Here is the number one rule to getting paid: NEVER, NEVER, NEVER, send out

information about the property to anyone unless you have a signed agreement back from them. Just

don’t do it. I don’t care if it is your best friend. Here’s why. He may be your best friend but if

anything happens to him during the transaction, do you think his widow’s next husband is really

going to want to pay you a fee?

In the next manual, we will go over in detail all the contracts that you will need as a

wholesaler. For now, get to know this contract inside and out. Make sure that you create two lists

of potential buyers; those that have returned a signed contract and everyone else. When you have a

potential buyer under contract, treat them like gold.

The next rule is: Be the Quarterback of the Deal. When you send the information off to your

Buyer, follow up with him and continue a dialogue. Is the property what he was looking for? What

would he need to have happen for him to make an offer on the deal? What can you do to help him?

This type of feedback will help your education process immensely throughout the

acquisition process.

Finally, and this is key, who are the players? You want to make sure that you know who you

are dealing with. In many cases, you may be dealing with another Deal Finder who plans on

sending it out to his list. BE VERY CAREFUL. Only work with those parties that cover their

assets as well as you do. If you turn over the information to another party and that party releases

the information without getting an NCND and Fee Agreement signed from his buyers, you may be

fighting a very challenging battle to get paid. If you get into this situation, refer back to Rule One

and Rule Two above.

Good luck.

MUTUAL NON-DISCLOSURE, NON-CIRCUMVENTION

AND FEE AGREEMENT

This MUTUAL NON-DISCLOSURE, NON-CIRCUMVENTION AND FEE

AGREEMENT (“Agreement”) made and entered into this _____ day of ______ 2012 by and

between PROPERTY LOCATOR PARTY of STREET CITY, STATE ZIP (“PROPERY

LOCATOR”) and BUYER of STREET, CITY, STATE ZIP (“BUYER”). PROPERTY

LOCATOR and BUYER shall all be individually and collectively referred to as “Disclosing

Party”, “Recipient”, and/or “the Parties”.

WHEREAS the PROPERTY LOCATOR intends to disclose certain information

detailed further below which is not readily available to the general public to BUYER with respect

to certain loans and/or real property (“PROPERTY”), and;

WHEREAS every intention has been made for specificity, the Parties wish to clarify

in this Agreement that the intent of this Agreement is to prohibit all the Parties involved

from circumventing relationships established subsequent to the execution of this Agreement as

well as memorialize a fee structure as it relates to potential transactions between the Parties and

seller of Property, and;

WHEREAS upon disclosure of such, Recipient shall not in any way circumvent or

disclose the relationships, ideas, marketing materials or identities of Disclosing Party’s Clients,

lenders, other brokers, agents or any other information as it relates to this Agreement without

prior written consent of Disclosing Party. This is additionally addressed in the paragraphs

below.

NOW THEREFORE, for good and valuable consideration, the receipt of which is

hereby acknowledged, the Parties hereto agree as follows:

1. Non-Circumvention: The Parties are engaged in a highly competitive

marketplace. Both Parties agree that they shall not market to, or solicit, or initiate contact with a

distributor, vendor, client, funding source, or member of the other party. Further, neither Party

shall circumvent, avoid, obviate, or bypass, directly, or indirectly, to avoid payment of earned fees

and/or commissions in any transactions with any Corporation, entity, partnership, sole

proprietorship, or individual in connection with any project or transaction relating to commercial

real estate financing, equity financing arrangements or private investor loans, of any form,

through the other Party, or any transactions arising from these business relationships for a period

of thirty-six (36) months.

2. Acknowledgement of Proprietary Information: The Parties acknowledge that

during the negotiation of a potential agreement between the Parties, and if finalized, during the

term of any agreement between the Parties, both Parties may disclose certain confidential

information pertaining to both Party’s business, clients, customers, vendors, agents or suppliers

(“CONTACTS”), which may include but is not limited to, statements regarding income, expenses

or costs, financial projections, list of vendors, suppliers employees, customers, potential

customers, product research marketing, and strategic plans, trademarks, and information

crucial to Both Party’s business (“PROPRIETARY INFORMATION”).

3. Business Trade Secrets: The Parties shall assist each other in maintaining this

Proprietary Information as secret and confidential and shall consider it to be a business trade

secret of the Disclosing Party.

4. Agreement to Not Disclose: The Parties agree that without the prior written

consent of the other Party, it shall not release for a period of thirty-six (36) months, in any form,

any of the Proprietary Information disclosed. The Parties agree they will take all necessary

measures to preserve and insure the confidentiality of the Proprietary information by its officers,

agents, employees, sub agents, directors, affiliates, advisors, attorneys, accountants, consultants,

and bankers.

5. Survival of Obligations: The Parties agree that the obligation to maintain the

confidentiality of the Proprietary Information and Non-Circumvention provisions shall survive for

a period of thirty-six (36) months from the conclusion of the negotiations regarding a potential

Agreement or, if said Agreement is entered into between the Parties, the termination or

conclusion of such Agreement. The Parties agree that they will not contact each other’s Contacts

for the financial or other gain during the anticipated Agreement between the Parties.

6. Fee Schedule: The Parties agree that Property Locator shall be paid two percent

(2%) of the purchase price of the subject property as a finder’s fee (“Fee”) upon the successful

closing of escrow of the Property that is the subject of this Agreement. Payment is the

responsibility of Buyer, its association and/or affiliated companies, individuals, assignees,

designees, trustees, or executors. In the event that a closing does not occur, but Buyer or affiliates

successfully negotiates a contract for an interest in land between the Seller of the Property and

Buyer or its affiliates, this Agreement will survive execution of that contract and the Fee will be

due and payable upon any subsequent closing between the Seller and Buyer.

7. Entire Agreement: This Agreement represents the entire understanding and

Agreement of the Parties hereto and may be modified or waived only by a separate writing

expressly so modifying or waiving this Agreement.

8. Remedies: The Parties acknowledge that in the event of any breach of this

Agreement, the Party responsible for breaching in addition to any other remedy to which the other

Party may be entitled by law or in equity, shall be entitled to an injunction to prevent

breaches of this Agreement, and to order a compelling specific performance of this Agreement,

and subsequent Agreement to be finalized by both Parties. The Party at fault shall reimburse the

other Party for all costs and expenses, including reasonable attorney’s fees, incurred by the other

Party in the event it successfully enforces the obligations of the Party at fault and its

representatives hereunder.

9. Severability and Confliction Provisions: If any term, provision, covenant,

paragraph, part, or condition of this Agreement is held by a court or regulatory body of competent

jurisdiction to be invalid, void, or unenforceable, the remainder of this Agreement shall remain in

full force and effect and shall in no way be affected, impaired, or invalidated. In this event, the

Parties shall omit the void or invalid section, paragraph, or portion of this Agreement as if it had

never been a part of this Agreement in the first instance. Further, should any provision(s) of this

Agreement ever be reformed or rewritten by a court or a regulatory body, those provisions as

rewritten will be binding on the Parties as if contained within the original Agreement.

10. No Waiver. No failure or delay by the Disclosing Party in exercising any

right, power, or privilege hereunder shall operate as a waiver thereof, nor shall any single or

partial exercise thereof preclude any other or further exercise thereof or the exercise of any right,

power or privilege hereunder.

11. Governing Law. This Agreement shall be governed and construed in

accordance with the internal laws of the State of _________________________, without regard to

the laws of conflict laws.

12. Captions. The captions contained in this Agreement are for convenience only,

and shall not affect the construction or interpretation of any provisions of this Agreement.

13. Construction. The Parties acknowledge that each party and its counsel have

reviewed and revised this Agreement, and that the normal rule of construction to the effect that

any ambiguities are to be resolved against the drafting party shall not be employed in the

interpretation of this Agreement or any amendments or exhibits hereto. BUYER:

By: __________________________________

Signature: _________________________________

Company: _________________________________

Date: ___________________

PROPERTY LOCATOR:

By: __________________________________

Signature: _________________________________

Company: _________________________________

Date: ___________________