sold for hard cash in a soft commercial real estate market hedge

Hedge Fund Formula

Checklist – How to Get Melt Down Millions ***This condensed version of the main lesson is for review purposes only. For an in-depth explanation of each of the items listed here, please refer to the main PDF file or the MP3 audio version.

We’re going to talk about: The process you will use to introduce All Cash Buyers to the best commercial deals in the market.

There are great deals out there that no one in the

commercial real estate market knows anything about.

The Hedge Fund Formula shows you exactly who to

contact and how to uncover these off market deals.

What you are about to discover is the hottest business

in commercial real estate today. In a frozen market

where promising deals simply can't get done because

money isn't flowing, the All Cash Buyer garners

intense attention because they can do any deal they

want to. They don't depend on the banks or any other

lender to close a deal fast.

And Hedge Fund Formula takes it a step or two further.

We have identified a niche market within the All Cash

Buyer market that is severely under served. It's a

SOLD For Hard Cash In A Soft

Commercial Real Estate Market

You will not find a better

commercial real estate opportunity than right here with

Hedge Fund

Formula

Richard Geller's Hedge Fund Formula - Summary Checklist

© 2010 Hedge Fund Formula. All rights reserved. www.hedgefundformula.org

2

market the big guys have no interest in and the little

guys can't afford to get into. There is almost no

competition. Sellers in this particular market are

grateful for your services.

Big money deals require a lot of credibility on the

part of everyone involved in the deal. We demand

everyone that we work with have credibility. We also

understand how difficult it can be to get started in

this business when you don't have established

creditability. We have you covered on that front.

Hedge Fund Formula has ways of lending its own well

established credibility to you so that doors to big

deals will open for you.

Here at Hedge Fund Formula we are so confident in the

services we provide we don't discourage you from

seeking out other hedge funds to do deals with. We

actually show you how to find other hedge funds that

may take deals we pass on.

Of course, we'll be showing you exactly how to find

dozens and dozens of highly profitably deals to send

into Hedge Fund Formula where you will earn hefty

finder fees for as little as 20 minutes effort a week.

The Objective- The eCourse objective is to quickly prepare you for this fantastic opportunity in the commercial real estate business where you can offer to connect property sellers with all cash buyers. All cash buyers are the easist buyers for a seller to work with because they move fast and don't need to wait for a lender to approve the deal.

What makes the Hedge Fund Formula unique is it delivers at least two advantages you won't find anywhere else. First, it targets a niche commercial market that is severely underserved where sellers will hang on your every word. Secondly it targets off market properties that only a very select few professionals know anything about. This all boils down to virtually no competition.

After you finish this eCourse, there will be no guessing what you need to do to earn very large fees for introducing sellers

Get started

fast



3

to all cash buyers. By the time you finish this short course, you will know exactly what the all cash buyers want to purchase. That’s how you create a steady stream of large fees coming to you for as little as 20 minutes of effort a week.

Quickly, your eClass will have you excited to get started. Specifically, you’ll have the following things in place…

How to get on exclusive lists that deliver off market deals directly to you.

Give you the scripts and information you need to polarize a group of brokers when they learn your buyers are all cash buyers.

Exactly what you need to do to quickly establish your credibility in the market and how to grow it with every contact you make.

How to best use your time or anyone else's by finding only the exact deals that Hedge Fund Formula buyers are looking for.

How to make the most out of your coaching and mentoring opportunity through ongoing interaction with us and the other students.

Off Market Millions

Here are a few of the reasons the Hedge fund formula will soon be an important money making program for you:

There are very few qualified or all cash buyers in the market today and it's expected to be years before banks begin qualifying borrowers again. Sellers are chasing the few cash buyers that exist.

Hedge fund buyers are all cash buyers with tens and hundreds of millions of dollars to invest.

What they don't have are feet on the street to find the best deals - that's where you come in.

You are paid to be a bird dog.

It can be done in as little as 20 minutes each week.

Hedge Fund Formula leaves

nothing to chance.

Everything you need is

covered

here.

You will be in a unique position to offer the best deals anywhere

in the market

today



4

One deal can mean tens of thousands of dollars in fees to you.

These are easy to do, they require no cash in the deal from you, no credit, and you don't need a real estate license.

Business owners are in terrible trouble and after two years they are being forced into selling lucrative businesses. Commercial loans are typically structured to have a balloon payment anywhere from five to ten years into the loan. Many of the short term loans have started coming due and will continue to for years to follow.

Business owners face three major hurdles when the loans come due. First, banks are hunkered down trying to preserve enough capital to keep the FDIC from shutting them down. From the chart below you see the dramatic rise in bank failures over the last two and a half years. On top of the actual closures, the FDIC maintains a list of over 700 more banks that it is watching for signs of distress. The banks' fear of being closed is very real.

The all out emphasis to preserve capital means many balloon payments are not being refinanced. What is happening is well performing businesses that have a long and healthy relationship with their bank are able to obtain an extension of

A Decade of Bank Failures

0

20

40

60

80

100

120

140

160

180

Bank Failures by Year

Series1 2 4 11 3 4 0 0 3 25 140 168

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010*

*Actual 2010 failures in mid June were

84. The 168 is an estimate for year

end.

Know what the

property owners are

up against



5

the loan. Those without that long healthy relationship face foreclosure or selling the business to repay the loan.

The second major issue revolves around the fact that nationally, commercial property values have fallen 42% over the past two years. They are no longer worth the value of the loan they secure. They cannot refinance.

The third issue comes from a lack of buyers in the market. With no financing available and an unpredictable future for commercial property values, buyers are as scarce as hen’s teeth in the market.

These issues set the stage for hedge funds with cash to buy commercial properties at very deep discounts.

What Hedge Funds Offer the Market There is no doubt this is opportunistic buying but after two years there are simply no other cash buyers in the market and these properties need to be bought at a fair market value. That fair market value is determined by the best price a willing owner can sell to a willing buyer.

The big hedge funds are taking down the really big deals. Those beginning at about $10 million and going up from there. Our Hedge Fund Formula has identified an underserviced niche market. Highlights of what we offer include:

Deals beginning in the $2 - $3 million range

Up to about $7 million

All cash

No financing contingency

Preliminary approval in 72 hours

Closing in as little as three weeks

Offers you a 'finder fees' up to $10K - $20K per deal

Finding the Best Deals - Off Market Because hedge funds are very strong performers in a weak

There are almost no

other

buyers



6

market they expect to buy only the very best deals. These seldom even make it onto the open market.

Here is why off market deals get done instead of being put on the open market. Assume a 300 unit multifamily complex needs to be sold.

The price is in the $6 million range.

It gets listed and exposed to every investor on the market.

There might be 15 'interested' investors but few, if any, have cash to close the deal.

They stumble around the property prodding into every corner.

Tenants become harassed and suspicious about why the property is being scrutinized for sale.

The tenants gossip and soon there are completely inaccurate rumors floating around. Some predict the complex is in foreclosure and everyone will be evicted. Soon tenants begin moving out because of the unfounded rumors.

The value of the property plummets due to the diving occupancy rate.

This is a disaster for the properly in today's already confused market. This is a key reason many, if not most, high end properties are sold off market. They are offered to well qualified buyers. All cash buyers are always well qualified buyers.

No financing contingency + fast closings = well qualified buyer

What happens when a quality property is listed for the whole world to inspect? Someone will write up an offer. The listing status becomes "Deal Pending". It will have a financing contingency. While they are performing due diligence and looking for financing, the property is effectively off the

Here is what can go

wrong when

unqualified buyers are

involved.



7

market for six months because no one else is going to work at or pay for the due diligence process when someone else has the property locked up.

In the end, the buyer does not qualify for the financing because:

He needs 30% - 35% down payment ($1,800,000 - $2,100,000).

He will have many other requirements.

Thousands in repairs.

Partial seller financing.

The bank requires he have substantial experience running a large multifamily complex.

In addition to the down payment, he must have six months of reserves to pay the mortgage.

The due diligence must satisfy the buyer.

A lot of work will be done for a very uncertain outcome.

How Off Market Deals Work What you are looking for here is a major commercial broker that has built up a list of good contacts.

These contacts are prequalified.

The brokers expose quality properties to the off market contacts on this list.

The contacts are built through personal relationships that require credibility.

Building Your Credibility Credibility is key to your success. You can borrow credibility from this program. Every time you talk to someone, you should be either establishing your credibility or increasing your credibility.

For you, credibility is everything. And if you have it, you can move more quickly into a more productive discussion about

You need to build these professional relationships with those that know where the off market

deals are at



8

issues and solutions without having to justify everything you say.

Borrowing credibility is one of the amazing benefits you receive from this course.

Today, it takes a relationship with hedge funds. Not many people have these kinds of relationships. And it can’t be a short term relationship. Hedge Fund Formula has long term relationships with hedge funds.

Buying with all cash means much less competition for those with access to the right resources. This is at the heart of the Hedge Fund Formula because you gain complete access to both a well established relationship with these all cash buyers and the ability to close the deals. Something very few in the industry have today – not even the veterans.

Both Richard and Blaise know and are known by thousands of prominent people in the real estate industry. Through them, you gain access to their contacts as a student of the Hedge Fund Formula eCourse.

Blaise is both a director and partner for a Private Equity Fund. Through contracts and agreements, he and Richard have put together the Hedge Fund Formula where you gain exclusive access to invaluable knowledge and cash buyer sources that others can only dream about.

It’s always difficult to break into a new market like Hedge Fund Formula when you don’t have proof of past performance.

There is file titled "Capabilities Sheet" along with this course that you can use to use to show potential clients the types of deals we have closed in the past.

Put Yourself in the Path of Good Deals You already have a huge advantage through your access to all cash paying hedge funds. And you know the hedge funds want access to off market deals, so you can begin tracking those

Hedge Fund Formula's credibility

is your ticket to getting doors

opened for

you

Use the Capabilities

Sheet to show

sellers and brokers previous

deals that have been

closed



9

down with the credibility of Hedge Fund Formula behind you. Here is another kicker. Hedge Fund Formula has identified a sweet spot in the market that it's going after. The niche between institutional investors and small local investors.

Institutional investors don't touch deals below about $10 million. These big guys can have between $500 million and $1 billion or more to invest. If they took on a bunch of $2 million deals, they would be trying to manage 250 deals. Even with a floor at $10 million they can have 50 or more deals going at one time. That's a lot of deals when you work in the complex world of commercial real estate.

The small local investors rarely commit more than $2 or $3 million to a single deal. Often that is close to the total pile of cash they have to work with. Even if they have more to invest, anything above that becomes too risky to sink into one property. They prefer to diversify.

That leaves the $3 million to $7 million market wide open. There is very little competition. That is exactly the deal size being targeted by Hedge Fund Formula. We can go higher than that to reach up to the $10 - $15 million market. It just takes longer to complete the due diligence. It takes away one of our marketing strategies when we can't close faster than the competition.

Greatly enhance your probability of closing deals with Hedge Fund Formula when you already know:

We provide immediate credibility for you.

Are specifically looking for deals in the $2 - $7 million range.

Strongly prefer off market deals.

Pay all cash - no financing contingency.

Close fast, often in three weeks.

Provide preliminary approval in 72 hours.



10

Your first assignment....

Finding All Cash Buyers

Any hedge fund that you want to work with should be able to act in a matter of hours or days. Some have the money ready to go. Others have to wait for their investors to write a check - it adds weeks to the process.

You want to work with ones having hundreds of millions of dollars ready to deploy.

They must be willing to protect your fee with an agreement. Here at Hedge Fund Formula, we provided you with a nondisclosure and non-circumvent agreement.

Finding Hedge Funds Online There are several online resources for finding All Cash Paying Hedge Funds. Here we will show the best ones and how they should be used to get you included in this exclusive club. We'll start with loopnet.com.

Loopnet is a free legitimate site where real hedge funds post to as well as brokers. You search the properties for sale to find what hedge funds are selling. You make contact and build a relationship with them. Even with a free basic subscription you are able to make contact

Your “Assignment” for Stage #1

Become well acquainted with the "Capabilities Sheet".

Begin contacting well qualified business brokers and position yourself to be added to any list regularly offering off market deals.

Instill behavior that not only preserves your credibility but will enhance it over time.

Send any questions or comments about the material to our Student

Support at: [email protected]

Don't work with just any old

hedge fund

Loopnet has a lot of

resources

http://www.loopnet.com/

http://www.freemyfunds.org/




11

with selling brokers and the occasional hedge fund. Almost every one of them provides a telephone number to call. Where you want to start is with an internet search of their name or business to find a website to learn as much as you can about them before making contact. Knowing something about them before hand is a great way of building credibility from the very beginning.

You can also use the 'Recent Sales/Sold' section of the site to see what is selling.

What you really want to do at Loopnet is find great contacts on the message boards. Use the "My Loopnet" function to find lots of valuable resources.

Loopnet Big Board is a place to meet brokers, sellers, an occasional hedge fund, and others. They will give you advice and let you know what is happening in the commercial real estate market.

Site Map has additional resources you can use. One shows you the most popular commercial real estate markets across the nation. Studying these locations will keep you informed of the most up to date information in the biggest and most active markets.

Google.com/alerts will scour the internet for you and bring you information on any subject you are interested in. You can set up multiple alerts to keep track of your professional interests. One specific to hedge funds involved with commercial real estate. Another in general about commercial real estate. Still another about commercial real estate in your local

http://www.google.com/alerts



12

region. And others about commercial real estate in other locations that you are tracking.

Many of these will be press releases that include contact information for you to work on those all important professional relationships. Remember to do some research about the individuals and businesses before making direct contact.

HedgeCo.net is another great resource whether you are new to hedge funds or a seasoned veteran. It contains everything from current news to upcoming events to a glossary of technical terms. Everything on the site is free.

Globest.com is yet another critical resource for keeping you up to speed in the commercial real estate field. This commercial real estate site makes a good companion to the HedgeCo site so that you stay current on both subjects. Under the "Market Coverage" tab you will find detailed information on subjects like market sectors (multifamily, retail, office etc.) and special focus subjects like student housing.

Hoovers.com is our final online resource. From this site you can look up business information on about any operating business in the world. This a good place to start your research when you want to know about a company to build credibility before contacting them.

Each of the resources we have referred you to is considered among the best at what they do. Combined together you have been shown how to access the best information and people in the business.

http://www.hedgeco.net/

http://www.globest.com/

http://www.hoovers.com/



13

Hedge Fund Formula Wants to Partner With You Here is a brief overview of what you can expect from us:

We have active relationships directly with the All Cash Buyer Hedge Funds you are looking for.

Blaise Dietz is a partner with a hedge fund specializing in commercial real estate.

We have funded and completed many deals. You can see examples of a few in the document "Capabilities Sheet".

We are actively looking for you to bring in deals right now.

We are always looking for more contacts with funds.

We will shop your deals to our contacts/fund sources.

We deal directly with you, without making you go through a broker.

As a "Hedge Fund Acquisition Advisor" working with us, we protect you with the proper agreements.


Set up accounts with the online resources you have been introduced to. Begin gaining an in depth knowledge of what is currently going on in both the commercial real estate market and hedge funds that pay all cash for commercial real estate.

Once you are up to speed, begin making contacts with sellers, brokers, and other hedge funds. Remember it's about building relationships that lead to the off market deals.

Send any questions or comments about the material to

Student Support at: [email protected]

Hedge Fund Formula is where you

want to bring your

deals





14

How to Qualify Deals

This is an important section. All of them are important of course but this is one that will keep you from losing credibility with the most important player on your team - the All Cash Buying Hedge Funds. The last thing you want to do is grab any old listing from Loopnet and submit it. It won't destroy your relationship the first time but doing it repeatedly will result in your deals not being taken seriously or looked at very carefully.

The Purpose for Qualifying Deals The number one reason you don't want to send in just any old deal is because it wastes the time of very busy people. The reason you can earn a very handsome finders fee is because you are suppose to screen these deals to some degree.

You need an established channel to get your deals submitted to a hedge fund. Hedge Fund Formula is your established channel. Just like we encourage you to protect your credibility, we need to protect our own. While we do not expect to you to perform a complete due diligence, we do expect you to be the first line of defense. We will perform a thorough due diligence once we preliminarily agree to take on a deal.

To speed up the process, hedge funds have formulas in place both to identify properties they are interested in and for the information they want to see as well as how they want the information presented. They only pay us for the deals they accept and they only accept deals matching their formula.

Don't Jump the Gun Great sales people are forever optimistic they have a great deal. Sometimes they do. Often they don't.

They become overly excited about a deal too soon.

They skip the qualifying step in their excitement to present the deal.

This is the most

important element of maintaining

your

credibility

The big mistake too

many make



15

Often deals get sent in that would not if just a little more information was uncovered.

Remember, you never have all of the information.

How to Get the Full Story Make sure they know that due diligence will be preformed by professionals that have been in the business for a long time. Anything that needs to be disclosed should be disclosed up front. Of course, tell them in a professional manner, not in a threatening way. It should be easy to communicate they will be dealing with highly trained and highly skilled professionals, not a first time buyer.

When you hear something that doesn't quite seem to make sense, ask probing questions. For instance, if they offer their own version of financial statements, ask why they don't have third party validated statements if they are serious about selling the property. They may try to conceal it at first but when you insist, most will tell you what is wrong. Acknowledge that there are always negative surprises in almost every deal. Let them know that we want to know it up front simply so we don't waste everyone's time.

Two Phases to Qualifying The first phase is very basic. Shortly you will be provided with information describing the types of properties Hedge Fund Formula is looking for. The first thing to determine is if it fits the criteria. For instance, we are looking for deals on multifamily housing in the A and B categories. So if you come across a C category multifamily you should pass on it unless know a lot about C class property and are absolutely convinced it is a deal we would be foolish to pass up.

When you do find a possible deal, do a quick check on the seller and/or broker. Nothing complicated, just google their name. If they are a player that has bought and sold significant amounts of commercial real estate there should be some information out there about them. Also google their name using a few terms like "terrorist", "fraud" and "scam".

Phase one

is very easy



16

Phase two only begins when you have a deal you want to consider. Only after the deal passes phase one. If someone is offering you a strip mall when the hedge fund is looking for office space, the deal is dead in phase one.

Once you have a "potential" deal, the best way to approach it is by looking for reasons it won't qualify. Remember we warned you about getting overly excited in the beginning. You counteract that by looking for the negatives right from the beginning.

A good way to go about this is with a weighted pro and con list. You create a list of characteristics the fund wants in that particular property type and weight each characteristic on a scale of 1 to 10.

Pros Property type 2pts Prices 10pts Location 10pts NOI 5pts Total 27pts

Cons Major repairs 8pts Occupancy rate 6pts Building age 9pts Total 23pts

This is going to be a subjective process and different issues will apply to almost every property so I can only share the idea. A template of worksheet really isn't practical. What I will say is in the example, even though the pros out weight the cons, I wouldn't send that deal in. The cons are close to equal weight with the pros, indicating it's far from a great deal. Mediocre at best. All Cash Buyers are not interested in mediocre deals. No one is in this depressed market. We are looking for great opportunities right now.

What We Are Looking for Today The market changes - this is what commercial property hedge funds are looking for today. It will change in the future. These are by priority. If it was me out looking for my first great deal to submit, I'd be focused on student housing. And then if I stumbled across a great multifamily or retail deal, I'd do my preliminary analysis on it and if it looked good I'd submit it. But my focus

Phase two is just about

getting a few straight

facts



17

would be on student housing.

1. Student housing

2. Multifamily

3. Retail

4. Office

5. Select Industrial Has a national tenant (warehouse for Coca Cola) Publically traded company as a tenant Strong credit tenant

Here is more detail for our top properties - student and multifamily housing.

100 units or more

Rent average at or above $600

A 10% cap rate or higher

Has an upside story of how cash flow can be improved. Something like student housing near a university with a record incoming class size that will result in 100% occupancy and increasing rents.

There are several reasons we are interested in student housing. People invest a lot of money in a university education. The money often comes from multiple sources such as student loans/grants, part time work, and parental support. Once a person makes the initial investment it is hard for them to walk away. The market is stable with plenty of income to support it.

In summary, here is the minimum you need to send in.

Executive Summary that includes the upside story

Offering memo

Third party verified rent rolls

Third party verified expenses

Third party verified vacancy rate

Trailing 12 months bank statements

It doesn't get much

more staight forward

than this

Your seller should be providing

this



18

Verified trailing 12 months rents and expenses

Verified trailing 12 month financial statements (balance sheet and income statement)

Previous year income tax (both federal and state if applicable)

Complete copy of leases

Photos (minimum front, back, up and down street)

NOI calculation

Cap rate calculation

Anything else you think pertains to the due diligence process

You will find a checklist of these as a separate file with the eCourse titled 'Documentation Required for Preliminary Approval'.

Deals You Don't Want to Send In If you see a 5% vacancy rate on a 100+ unit apartment complex you need to be skeptical and verify it before sending it in. Also, we don't want:

Gazillion dollar deals

Anything outside of the US

Anything where you can't talk directly to the listing broker or seller

Busted development deals (anything that is not already operating)

Busted development deals

Busted development deals

Why would an investor buy an unproven property that stalled in development when there are great properties available that are cash flowing now?

That doesn't mean we're not interested in an operating apartment building with a high vacancy rate or reduced rents

Keep it

simple



19

that can be improved by rehabbing the apartments. But the buy price has to be discounted to the point that it supports the rehab - low, very low.

Avoiding deals that won't be funded is the key to being able to do this in 20 minutes a week. Put all of your effort into finding the right deal and then getting the paperwork together and sending it in.

Finding Deals Online and Offline

How to Find Online Deals Looking for deals online has lots of advantages and really only one disadvantage. It is efficient and effective however, beware of deals that have been recycled and be aware that numbers, figures, and facts are never what they seem to be. You can also get involved with a daisy chain of brokers if you don't go about it the right way.

Loopnet is a great place for finding deals.

Find a deal that looks pretty good and contact the person behind it. The first thing you want to do is validate they are either the owner/seller or directly represent the owner/seller. You do this by simply asking them and then following up with some detailed questions about the property. If they are legitimate, they should


Decide on the property type you want to focus on and specialize with. Make sure it is on the list of property types we are looking for.

Decide how you will perform a simple analysis to qualify deals before sending them in.

Use the Documents Required for Preliminary Approval checklist before sending in your deals.

Send any questions or comments about the material to

Student Support at: [email protected]

Get behind the listed

deals to the people that can bring you off

market deals





20

know something about the finances behind the property. If they are not for real, they won't have access to that information.

Then ask if you can explain a little about your unique circumstances as an Hedge Fund Acquisition Advisor. You should have this down cold by now. You are able to bring in an All Cash Buyer that does not have any financial contingencies. Your buyers close the deal fast, often in as little as three weeks. You obtain a preapproval answer in 72 hours. But this type of buyer is only taking the best deals on the market. You'd like to know if he has any deals that he thinks a well qualified all cash buyer would be interested in, especially those that are not yet on the market.

Online is about building relationships. Even if he doesn't have anything at the moment, make sure he understands you would appreciate if he gets in contact with you later when he comes across something you might be interested in. Takes about twenty minutes to search out a decent deal, do a little research about the broker, and make contact.

It's easy to find brokers at Loopnet:

1. Register with Loopnet if you haven't already.

2. Go to the 'find a broker' tab.

3. Unclick the 'lease broker' in the upper left corner.

4. Use the drop down window to select the type of commercial property you are looking for.

5. Start in your state.

6. You should now be able to research different business brokers.

7. In your local area, build relationships.

Other online sources to find brokers:

globest.com - look under 'events and networking' and then 'professional networking'

Tell them why you

offer services

they can't find any

where else

http://www.globest.com/



21

CBRE.com - click 'find a property', next is USA, next is 'properties for sale', you can now be very selective in the type of property that you want to find a broker for.

Google alerts - "business broker press releases"

Local broker websites - simply google "business brokers [your city and state]"

Social networking websites like FaceBook , MySpace, LinkedIn, and Naymz.

How to Find Deals Offline You can order inexpensive or even free business cards from Vistaprint.

Next click over to Meetup and search for business networking meetings in you area. In large metropolitan areas you'll want to search specifically for 'commercial real estate' in smaller markets you should broaden the search to just 'real estate'.

Look for large groups to attend and look at the rating the meeting receives on the meetup page. Most cities will have a Real Estate Investor Association meeting (REIA). This is a good place to start and return to occasionally.

Be sure you prepare a script before you go so that you can effortlessly tell them all of the critical information about the great opportunity you are presenting to them.

"I am a Hedge Fund Acquisition Advisor for an All Cash Buyer. We all know commercial deals are hard to close right now. We have no financing contingency and can close in as little as three weeks on multimillion dollar deals. We work fast, we can provide a letter of intent and proof of funds within three days after receiving basic information about a potential deal. What I do is fill out a one page summary form and submit it to our underwriter. When can we go over some possible deals? "

People will be interested in hearing more. This is a big opportunity for them. No one else offers "All Cash" purchases.

Look people in

the eye and tell them

you represent All Cash

Buyers

http://www.cbre.com/

http://www.google.com/alerts

http://www.facebook.com/

http://www.myspace.com/

http://www.linkedin.com/

http://www.naymz.com/

http://www.vistaprint.com/vp/welcome.aspx?xnav=welcomeback&rd=2

http://www.meetup.com/



22

Show them the "Hedge Fund Formula Capabilities Sheet".

Show the "What We Are Looking For Today" information.

Talk about Blaise's team

Use comments like "the underwriter I was talking to said...'

"The hedge fund that is part of my team is ...."

"Let's go over guidelines of what they are looking for"

These are the types of professionals you want to meet:

CPAs

Business brokers

Property owners who must refinance or work out financing problems

Commercial realtors

Financial planners

Existing business owners

Investors who want to buy low

You will find people are very interested in what you are offering.

Finders Fee Typically your finder’s fee will be 1/4 of a point for these multimillion dollar deals.

A $3 million deal pays $7,500





Working at this twenty minutes each week will make a huge difference in your financial life. You earn these finder fees just for making an introduction.

Larger deals can be done and the finder fee determined on a case by case basis.

There are a lot of

people that can deliver

deals to you

Here is the big money you will soon be

making



23

1099 forms will be provided to the IRS if appropriate and according to law.

How to Submit Deals It only takes a simple one page online form but all of the information is critical or we have no way to complete a preliminary analysis. It asks for:

Property class A, B, or C

Property address

Number of units (beds for student housing)

Seller's asking price

Today's stated but not verified NOI

Seller's stated but not verified trailing 12 month gross revenue and expenses

You can submit that to get a quick answer if we are going to be interested. But we are going to need what is required on the Documents Required for Preapproval list before we can get serious about looking into the deal.

Before you submit the form ask them a few questions.

"How did you arrive at your asking price?"

"How firm is your asking price?"

"Can an all cash buyer get a price break?"

As for the story. "Why are you selling?"

"Where is the upside opportunity"

"How can the profitability be improved?"

"Why should a buyer be excited to buy the property?"

"Is the low occupancy because of the owner or because of the economy?"



24

If they can't provide some of the require information right away, give them your email and contact information and ask them to send it when they have it.

Again, remind them "it will be an All Cash Offer. No financing contingency with a fast closing. They could have the cash in as little as three weeks after the complete paperwork is submitted."

Also remind them that all cash buyers are the easiest in the market to deal with. But they do expect to see the best deals. They like to see off market deals - before they are offered to the public.

If you are talking to a broker, ask them if there is a process or department that you can be included in to see off market properties. Get connected to the exclusive part of the company where you have access to the best deals the Hedge Fund Formula wants to buy.

Reach for Greater Success Be sure to log on for our live coaching sessions. You can participate at the web site all during the month.

Be there live

Get your questions answered

Find out what the current situation is

Learn where the best opportunities are

Learn what other students are doing

Your Action Steps Print business cards

Go to Meetup

Talk to others in the market

Ask about off market deals

Do a deal with us and another and another and another

Helping you succeed

never stops when you work with

Hedge Fund Formula

Time for you to take

action



25

Keep your eye on your inbox, because you won’t want to miss the eye-opening tips, tricks and secrets that are coming your way soon!

Richard Geller - Publisher, Hedge Fund Formula

P.S. Be sure to review all of the materials that are included with this curriculum package. You should have received five other files:

1. eCourse Hedge Fund Formula – Main eCourse Document

2. eCourse Hedge Fund Formula – Capabilities Sheet

3. eCourse Hedge Fund Formula – Documentation Required For Preliminary Approval

4. eCourse Hedge Fund Formula –What We Are Looking For Today

5. eCourse Hedge Fund Formula – Discussion Points By Property Type


Now is the time to do it if you haven't already setup accounts at the suggested online resource websites.

Have your "Hedge Fund Acquisition Advisor" business cards printed and a few copies of the "Capabilities Sheet' to take to your first meetup.

It's time to find and submit your first deal and collect your hefty finder's fee.

Be sure to log onto the coaching/mentor live sessions.

Send any questions or comments about the material to Student Support

at: [email protected]

