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Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques Your PMBP Faculty: Trevor Mauch Susan Lassiter- Lyons Patrick Riddle

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Page 1: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Underground Money-Getting Strategies for 2010Underground Money-Getting Strategies for 2010

7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Your PMBP Faculty:Trevor Mauch

Susan Lassiter-Lyons

Patrick Riddle

Your PMBP Faculty:Trevor Mauch

Susan Lassiter-Lyons

Patrick Riddle

Page 2: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Yes, You Can Get the Money for Your Deals in Today’s Market

WITHOUT...BanksHigh Interest & PointsYour Own CashGood CreditSigning Your Life AwayHuge HeadachesHassles

Page 3: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

You’re About to Learn …• The 3 Things You Must Do to Raise Private

Money from Today's Prospect• How to Use "Aikido" Principles to Overcome

Objections from Potential Private Lenders• Brand New Online Private Money Conversion

Strategies• 7 Ways to Make Money as a Real Estate

Syndicator• Susan's 9 Step Multifamily Syndication

Process Map

Page 4: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Your PMBP Faculty• Started Investing at 21• Never Used His Own Money• Top Internet Marketing Expert

• Started Investing at 21• Never Used His Own Money• Top Internet Marketing Expert

• Active Investor Since Mid-90’s• The $24 Million Dollar Woman• Pooling, Syndication, Bulk REO

• Active Investor Since Mid-90’s• The $24 Million Dollar Woman• Pooling, Syndication, Bulk REO

• College Drop Out Turned REI• Got $6 Million in Private Money• Closed Over 127 Deals

• College Drop Out Turned REI• Got $6 Million in Private Money• Closed Over 127 Deals

Page 5: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

More Money AvailableNow Than Almost Ever…

Source: Business Week 2009

Source: Inside A.R.M. 2009

Page 6: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Investors Lack Confidence In“Traditional” Investments

Page 7: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques
Page 8: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

“Closed on a 49 unit complex … $6K per month cash flow”

Page 9: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Systems Are What Make Businesses Successful

Page 10: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Updated 2010 VersionPrivate Money Blueprint

Page 11: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Time’s Have Changed … Has Your Money-Getting Approach?

Page 12: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

What You MUST Do to Get the Money from Today’s Prospect

• Handle ALL Common Objections to Lending in Today’s Market

• Build Massive Rapport, Credibility, & Trust• Show ‘em Proof

• Testimonials• Studies• Quotes from Authority Figures• Statistics• Articles

Page 13: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Big Fat Objection # 1 – Today’s Real Estate Market is in the Dumps

• Quotes from Authority Figures• "The time to buy is when there's blood in

the streets." - Baron Rothschild• "Be fearful when others are greedy and

greedy when others are fearful." - Warren Buffet

• "You can make more money in down markets than you can in up markets." - Donald Trump

Page 14: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Big Fat Objection # 1 – Today’s Real Estate Market is in the Dumps

• Quotes from Authority Figures• "If you want to make money, really big

money, you do what no one else is doing. Buy when everyone else is selling and sell when everyone else is buying. This is not merely a catchy slogan. It is the very essence of successful investment." - J. Paul Getty

Page 15: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Big Fat Objection # 1 – Today’s Real Estate Market is in the Dumps

Page 16: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Big Fat Objection # 2 – Buyer Reluctance

• Define Your Reluctant Role• Get Prospect Imagining Lending You Money

• Imagine what it would be like if …• Are you beginning to see how …• Have you noticed yet that …• What if you …

Page 17: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Big Fat Objection # 2 – Buyer Reluctance

• Promote Scarcity!

“Human beings have been hard-wired to want

what is going away. And far more people are motivated by the thought of potential loss than potential gain.”

- Influence: The Psychology of Persuasion, Robert Cialdini

“Human beings have been hard-wired to want

what is going away. And far more people are motivated by the thought of potential loss than potential gain.”

- Influence: The Psychology of Persuasion, Robert Cialdini

Page 18: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Big Fat Objection # 2 – Buyer Reluctance

• Scarcity by Limiting Number

• “We’re only looking to bring in a few (probably less than 5) highly qualified private investors into our company.”

• “I have another investor interested in this lending opportunity, but I thought of you, and wanted to give you the first shot at it.”

• Scarcity by Limiting Time

• “We’ll have an investor lined up to fund this deal by next Monday. So, if you’re interested, you’ll definitely need to act fast.”

Page 19: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Big Fat Objection # 3 – Have You Done This Before?

• 3 Step Objection Smasher

1. Borrow Credibility

2. Use the Principle of Aikido

3. Promote Scarcity

Page 20: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

“I just secured my FIRST private lender and we are looking for the first deal!”

Page 21: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

New Conversion Strategies for Getting the Money

• More People Buying & Selling Online Every Day

• Effective Website• Includes Free Reports• Lead Capture Forms and

Database• Search Engine Optimized

– Free Keyword Search Tool

• SEC Compliant

Page 22: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques
Page 23: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

New Conversion Strategies for Getting the Money

Page 24: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Let’s Kick it Up a Notch• Since 1994, I’ve Participated in 500 Deals

as an Investor, Private Lender, Syndicator & Hard Money Broker

• Syndication is HOW YOU GET RICH!

Page 25: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Syndication 101From Dictionary.com…

a group of individuals or organizations combined or making a joint effort to undertake some specific duty or carry out specific transactions or negotiations.

In Investing…Forming a group to pool capital to invest in…

Page 26: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Syndication Happens All Around You

• Business PartnershipsAT&T and Apple (iPhone)

• LicensingiTunes and The Go-Go’s

• OprahHarpo Studios and CBS Stations

Page 27: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

7 Ways to Make $$ as a Real Estate Syndicator

• Wholesaler

• Lease Option Flipper

• Private Money Broker

• Commercial Investor

• Bulk Asset Finder

• Joint Venture Facilitator

• List Broker

Page 28: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Susan’s StrategyCommercial Investor

Multifamily Syndication

Page 29: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

How to Form Your Own Multifamily Syndicate

This scenario assumes you are interested in investing in multifamily

properties at a price point of $3 million.

Page 30: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

How to Form Your Own Multifamily Syndicate

• Target equity investment of 30-35% or $900K - $1.05MM or 100%

• LLC structure can have you as a managing member and your investors as members.

• Target investment from each member $150K so you need 7 investors.

• How do they get the money?

• Cash, Self-Directed IRA, Liquidate stocks, Stock Loan

• They can deposit the money into the LLC bank account, escrow account or sign a subscription agreement.

Page 31: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

How to Form Your Own Multifamily Syndicate

• Submit the LOI and write offer in the name of the LLC.

• Draft an operating agreement that spells out who gets what and when.

• You can add in a management fee to manage the LLC (not the property) and/or get an acquisition fee at closing. If you are a licensed real estate or mortgage broker you can make additional commissions.

• As the syndicator, you are responsible for overseeing the property management company and ensuring investors get paid according to the operating agreement.

Page 32: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

How to Form Your Own Multifamily Syndicate

• When it’s time to sell the property, the syndicator will oversee the sales process.

• TIP: If your investors are uneasy about depositing their money into the syndicate bank account before funding your escrow, set up a “receipt of third party deposit” on the purchase escrow. This way they wire money directly to escrow but can get it refunded in full if the deal doesn’t close.

Page 33: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

3 Levels of Pooling

• Fractionalized Trust Deed

• Limited Liability Company

• Private Placement Memorandum

Page 34: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

3 Levels of Pooling

• Fractionalized Trust Deed• Residential Only

• Up to 10 lenders on one deal all in the same lien position

Page 35: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

3 Levels of Pooling• Limited Liability Company

(LLC)• My preferred structure

• Form an LLC with an operating agreement

• Vested in Members; Syndicator is Managing Member

Page 36: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

3 Levels of Pooling• Private Placement

Memorandum (PPM)• PPM can be expensive to set up

• Regulation D

• Your SEC exemption 504, 505 or 506 determines how much money you can raise and how many accredited vs. non-accredited investors you can have

Page 37: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Wouldn’t You Like to Have Unlimited Funding

for Your Deals?

Wouldn’t You Like to Have Unlimited Funding

for Your Deals?

Page 38: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Getting the Money• Private Money• Pooling and Syndication• Hedge Funds• Transactional Funding• Conventional Financing• Government Funding and Grants• Hard Money• Construction and Rehab Financing• Business Lines of Credit• Portfolio Loans• Self Directed IRA’s

Page 39: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Mike Replogle Case Study

Page 40: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

“My net monthly cash flow is $2,000!”

Page 41: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

• Be your own boss• Secure future• Enhance quality of life• Pay medical bills• Time freedom

What Do You Want• Pay off _______• Support charity• Own home• Buy boat• Take trip

Work Because I Want ToNot Because I Have To

Work Because I Want ToNot Because I Have To

Page 42: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

June 4 – 6, 2010

Page 43: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Day One• Session 1: Who’s Still Making the Crazy

Loans: “Unconventional” Bank Financing• Session 2: Getting Private Money Anytime,

Anywhere, Even If You Have No Credit, No Experience, and No Money

• Session 3: Project Greenlight (Top Secret Way to Get Unlimited Bank Funding with a Single Approval)

• Session 4: “How I Raised $90 Million in Private Money”

• Session 5: Private Money 202

Page 44: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Day Two

• Session 6: Self-Directed IRA’s• Session 7: Wraps, SAM’s and P-DOT’s:

Advanced Owner Financing Strategies• Session 8: “How I Buy and “Reposition” Multi-

Family Properties with Conventional Loans in 2010”

• Session 9: The SEC• Session 10: “How I Attract Private Equity”• Session 11: Transactional Funding and Flash

Cash

Page 45: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Day Three• Session 12: Government Funding• Session 13: Rehab Loans• Session 14: Online REI Marketing Systems• Session 15: Doing Business with Hedge Funds• PLUS…• Underground Investor Expert Panel • Exclusive Networking Cocktail Party

Page 46: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Our Inner Circle

Page 47: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

YOUR Inner Circle

Page 48: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

Walk in Friday Morning With Funding Problems…

Walk Out Sunday Afternoon With Step By Step "Money Getting"

Guidance And Direct Deal Funding Contacts And Actionable Strategies…

To Get MoneyFor Your Real Estate Deals For Life!

Page 49: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

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Page 50: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

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Page 56: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

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Page 57: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

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Page 58: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

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Page 59: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

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Page 60: Underground Money-Getting Strategies for 2010 7 Simple Ways to Make Money as a Real Estate Syndicator & Other Advanced Private Money Getting Techniques

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