1. Attracting Investor Clients Presented by the Arizona Academy of Real Estate – 8/28/12 Instructor: Marty Boardman Twitter: @martyboardman LinkedIn: linkedin.com/in/MartyBoardman Presented by the Arizona Academy of Real Estate – 8/28/12 Instructor: Marty Boardman Twitter: @martyboardman LinkedIn: linkedin.com/in/MartyBoardman

2. 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’ 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’

5. BREAKING NEWS! Inventory Levels at Record Lows Active Listing Count 14,192 Pending/AWC Listing Count 17,742 Active Listing Count (SF Detached) 11,220 Closed Sales (Last 30 Days) 5,963 Supply 2.3 months Arizona Regional Multiple Listing Service August 27th, 2012 Active Listing Count 14,192 Pending/AWC Listing Count 17,742 Active Listing Count (SF Detached) 11,220 Closed Sales (Last 30 Days) 5,963 Supply 2.3 months Arizona Regional Multiple Listing Service August 27th, 2012

6. 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 2 nd, 2012 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 2 nd, 2012

7. 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 “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

8. Attracting Investor Clients Where do I go to meet real estate investor clients?

9. Attracting Investor Clients Who they are. What they want. What they need. How they think. Where they are. Who they are. What they want. What they need. How they think. Where they are.

10. Who is the Investor? 1.Wholesalers 2.Fix and Flippers 3.Buy and Holders 4.Seller Financing 1.Wholesalers 2.Fix and Flippers 3.Buy and Holders 4.Seller Financing

11. Wholesalers Buy low, sell low And/or assignees Bird Dogs Buy low, sell low And/or assignees Bird Dogs

12. Fix and Flippers 1.Buy low 2.Rehab 3.Market 4.Sell high 1.Buy low 2.Rehab 3.Market 4.Sell high

13. Buy and Holders Cash Flow Wealth accumulation Inflation hedge Cash Flow Wealth accumulation Inflation hedge

14. 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 31 st, 2012

15. Seller Financing 1.Lease/Options 2.“Subject To” Deals 3.Wraps 4.Carrybacks 1.Lease/Options 2.“Subject To” Deals 3.Wraps 4.Carrybacks

16. Lease/Options 1.Non-refundable option deposit 2.Cash Flow 3.Sell high 1.Non-refundable option deposit 2.Cash Flow 3.Sell high

17. Break

18. 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? 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?

19. Why Must You Know This?

20. Can you solve their problems? 1.Repairs and project management 2.Funding 3.Market analysis 4.Finding a deal 1.Repairs and project management 2.Funding 3.Market analysis 4.Finding a deal

24. 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. 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.

26. Funding Hard Money SD IRA Partners

27. Hard Money Property serves as collateral 25-30% Down 12-18% interest 1-4 points Personally guaranteed Property serves as collateral 25-30% Down 12-18% interest 1-4 points Personally guaranteed

28. Partners LLC with operating agreement Prom Note Deed of Trust Private Equity LLC with operating agreement Prom Note Deed of Trust Private Equity

29. Self Directed IRAs $3.7 Trillion in IRAs Anything allowed by law Membership interest in an LLC Prom Note Grows tax free $3.7 Trillion in IRAs Anything allowed by law Membership interest in an LLC Prom Note Grows tax free

30. Market Analysis - MLS Pending sales Traditional sales vs. REO/Short Sale Days inventory Price per sq/ft Pending sales Traditional sales vs. REO/Short Sale Days inventory Price per sq/ft

31. Price Per Square Foot Normal$113.88 Short Sale$78.07 REO$75.43 *August 2012- The Cromford Report Normal$113.88 Short Sale$78.07 REO$75.43 *August 2012- The Cromford Report

32. Finding a Good Deal Be a bird dog 1. Direct Mail 2. Door Knocking 3. Radio Ads 4. Website/lead capture Your Sales Proposition 1. No lock box or signs 2. No showings 3. Buyer ready Be a bird dog 1. Direct Mail 2. Door Knocking 3. Radio Ads 4. Website/lead capture Your Sales Proposition 1. No lock box or signs 2. No showings 3. Buyer ready

33. 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 3 Bedroom, 2 bathroom, 2 car garage minimum Tile roof/wood frame construction $150,000 - $400,000 acquisition price Valley wide

34. Marty’s Fast Flip Formula $150,000.00retail price -12,000.00closing costs commissions -15,000.00 profit -12,000.00repairs - 5,000.00 holding costs $106,000.00 offer $150,000.00retail price -12,000.00closing costs commissions -15,000.00 profit -12,000.00repairs - 5,000.00 holding costs $106,000.00 offer

35. Will you list this for me?

36. Just kidding…will you list this for me?

37. 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 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

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

40. 15622 W. Caribbean Lane Surprise, AZ (Greenway Parc) Purchased 4/11/12 – Sold 7/12/12

41. 15622 W. Caribbean Lane Surprise, AZ (Greenway Parc) Retail Sales Price $139,900.00 Acquisition Price 98,000.00 Commissions/Closing 11,000.00 Holding Costs 3,000.00 Repairs 12,000.00 Net Profit $15,900.00 Retail Sales Price $139,900.00 Acquisition Price 98,000.00 Commissions/Closing 11,000.00 Holding Costs 3,000.00 Repairs 12,000.00 Net Profit $15,900.00

42. Where do you go to meet real estate investor clients? 1.Networking events 2.Real Estate investment classes 3.School/Church 4.Social Networking 5.Title Companies 1.Networking events 2.Real Estate investment classes 3.School/Church 4.Social Networking 5.Title Companies

45. Warren Buffett Lunch Auction Raises $3.46 Million “An anonymous donor on June 8 th 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 15 th, 2012

46. FlippingPhoenixHouses.com

47. Marty Boardman marty@risingsuncapitalgroup.com 602-319-5391 twitter.com/martyboardman linkedin.com/in/martyboardman marty@risingsuncapitalgroup.com 602-319-5391 twitter.com/martyboardman linkedin.com/in/martyboardman