Attracting Investor Clients Presented by the Arizona Academy of Real Estate – 8/28/12

Instructor: Marty Boardman

Twitter: @martyboardmanLinkedIn: linkedin.com/in/MartyBoardman

Marty Boardman

• Full-time real estate investor since 2002

• Managed a $16 million portfolio of investment properties

• Fix and Flip – Seller Financing Exit Strategies – 70 properties sold since July 2009

• Realtor since November 07’

BREAKING NEWS! Inventory Levels at Record Lows

Active Listing Count14,192

Pending/AWC Listing Count17,742

Active Listing Count (SF Detached)11,220

Closed Sales (Last 30 Days)5,963

Supply2.3 months

Arizona Regional Multiple Listing ServiceAugust 27th, 2012

BREAKING NEWS!Market Update:

From Cromford Report:

• Median sales price up 33% year over year

• Average price per square foot up 23% year over year

• Normal sales 54.6% market share• REOs 14% market share• Short sales 31.4% market share

*Michael Orr, Cromford Report – August 2nd, 2012

Why Do Investors Care?

“A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.

And most certainly, fear is now widespread, gripping even seasoned

investors.”

- Warren Buffett

Attracting Investor Clients

Where do I go to meet real estate investor clients?

Attracting Investor Clients

• Who they are.

• What they want.

• What they need.

• How they think.

• Where they are.

Who is the Investor?

1. Wholesalers

2. Fix and Flippers

3. Buy and Holders

4. Seller Financing

Wholesalers

• Buy low, sell low

• And/or assignees

• Bird Dogs

Fix and Flippers

1. Buy low

2. Rehab

3. Market

4. Sell high

Buy and Holders

• Cash Flow

• Wealth accumulation

• Inflation hedge

America is Becoming a Nation of Renters

“The steady rise in demand for rentals has tightened the supply of housing, helping push rents higher ... while the pace of new household formations has lagged historical averages, those new households are

becoming renters.”

- MSNBC.com,January 31st, 2012

Seller Financing

1. Lease/Options

2. “Subject To” Deals

3. Wraps

4. Carrybacks

Lease/Options

1. Non-refundable option deposit

2. Cash Flow

3. Sell high

Break

Managing Expectations

1. What kind of ROI are you looking for?

2. How much do you plan to invest?

3. How long can you keep your money invested?

Why Must You Know This?

Can you solve their problems?

1. Repairs and project management

2. Funding3. Market analysis4. Finding a deal

Repairs and Project Management

1. Know what things cost and where to go to buy them.

2. Know how long it takes to get things done.

3. Get things done fast.4. Get things done

inexpensively.

Funding

Hard

Money

SD IRA

Partners

Hard Money

• Property serves as collateral

• 25-30% Down• 12-18% interest• 1-4 points• Personally

guaranteed

Partners

• LLC with operating agreement

• Prom Note

• Deed of Trust

• Private Equity

Self Directed IRAs

• $3.7 Trillion in IRAs• Anything allowed

by law• Membership

interest in an LLC• Prom Note• Grows tax free

Market Analysis - MLS

• Pending sales• Traditional sales vs.

REO/Short Sale• Days inventory• Price per sq/ft

Price Per Square Foot

• Normal$113.88

• Short Sale $78.07

• REO $75.43

*August 2012- The Cromford Report

Finding a Good Deal

• Be a bird dog1. Direct Mail2. Door Knocking3. Radio Ads4. Website/lead capture

• Your Sales Proposition1. No lock box or signs2. No showings3. Buyer ready

The Best Client You’ll Ever Have

• 3 Bedroom, 2 bathroom, 2 car garage minimum

• Tile roof/wood frame construction

• $150,000 - $400,000 acquisition price

• Valley wide

Marty’s Fast Flip Formula

$150,000.00 retail price

- 12,000.00 closing costs

commissions- 15,000.00 profit- 12,000.00 repairs- 5,000.00 holding costs

$106,000.00 offer

Will you list this for me?

Just kidding…will you list this for me?

Attracting Investor Clients

1. Leverage the success of your client.

2. Raise your own capital.

3. Build your own real estate investment business.

4. Attract other investor clients and/or partner with your client

“Are you gonna’ pull those pistols or whistle Dixie?”- The Outlaw Josey Wales

15622 W. Caribbean LaneSurprise, AZ (Greenway Parc)

Purchased 4/11/12 – Sold 7/12/12

15622 W. Caribbean LaneSurprise, AZ (Greenway Parc)

Retail Sales Price $139,900.00Acquisition Price 98,000.00Commissions/Closing 11,000.00Holding Costs 3,000.00 Repairs 12,000.00

Net Profit $15,900.00

Where do you go to meet real estate investor clients?

1. Networking events2. Real Estate

investment classes3. School/Church4. Social Networking5. Title Companies

Warren Buffett Lunch Auction Raises $3.46 Million

“An anonymous donor on June 8th paid $3.46 million to Glide, an antipoverty group in San Francisco, for the privilege of having lunch with

Warren Buffett.”

- Wall Street Journal,June 15th, 2012

FlippingPhoenixHouses.com

Marty Boardman

marty@risingsuncapitalgroup.com 602-319-5391

twitter.com/martyboardman linkedin.com/in/martyboardman