How to Build a Passive Income Portfolio 5/1/2019 3:34 AM Module 1B – Choosing the Right Strategy How to Build a Passive Income Portfolio with Creative Financing & Private Money © 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Rental or Option Income 5/1/2019 3:34 AM 3 Main Types of Passive Income Passive Income Rental or Option Income Generate Notes Partnerships © 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Seller Financing Lease Option to Buy Master Lease Option (commercial) Subject To … (existing mortgage staying in place) Owner Financing First Position – Free & Clear – 100% Funding Possible Second Position – Second or Partial Mortgage funding Wrap Around Mortgage Land Contract, Contract for Deed

or After Repair Value

Money Partners Anyone with Funds Available 5/1/2019 3:34 AM Money Partners Anyone with Funds Available Older people nearing retirement People who do not want to deal with day to day operations Investors who are already in real estate but looking to spread into other areas Bonus Tip – “Transition” your Cash Buyers to Become Money Partners Instead © 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Who are Immediate Money Partners? Cash Buyers

Money Partners Partner with them, instead of wholesaling the deal “as is” to them Split on the first deal to their advantage, then negotiate

Money Partners MLS Search Cash sales in the last 6 months Auctions Court Auctions Tax Auctions Private Auctions HudsonandMarshall.com WilliamsandWilliams.com Linkedin Search keyword “Portfolio Manager” “Asset Manager” ‘Straight’ Cash Purchases Used Private Money

Money Partners Other Wholesalers Co-Wholesale or Partner Title Companies They know who close for cash Real Estate Agents (dealing with investors) They have cash clients (will work for commission) Join Local Real Estate Group

Generate Notes Wholesale a Deal PP $50k Buyer Buys Cash Financing 5/1/2019 3:34 AM Generate Notes Wholesale a Deal PP $50k Buyer Buys Cash SP $70k Financing 80/20 SP $70k You can ‘create’ a 1st or 2nd Mortgage up to $20k © 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Example Wholesale or Fix & Flip or Retail Your Purchase Price $50,000 Re-Sell Price $70,000 Your Potential Profit $20,000 You can Sell It: Cash Price $70,000 Cash/Loan + 2nd Note $55,000 Cash/Loan $15,000 2nd Note Your “Walk Away” Cash at Closing $5,000 © 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

5/1/2019 3:34 AM Example © 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.