1. Dr. Yi Qian Founder and CEO Mutual Business Alliance Group Inc., Tips for Evaluating Opportunities in Business and Real Estate How come if I can’t afford to invest? My background (TV, radio, EXPO)? Purpose (non profit)? Questions? Realtor or investor of investment property? Licensee? Short-cut tips?

2. Investment vs. Regular life Two hands up: Never give up your work for quick money! –Routine job and routine payment, less risk but safe –Quick and non-labor intensive money, more risk but high return –Employed, Specialist, Business, Investor What we need is not the security of job but the security of family finance! My aim of the investment education: –Turn people into friends –Turn friends into investors –Turn investors into life-time partners Detroit market? Current market low ball ideals? Increase homestead of primary house and no property tax in FL?

3. Investment strategies Buyer vs. Investor –How much it is? vs. How much it makes? –How much you make? vs. How much I make? –I don’t like the lot face to.. vs. How much potential and who is going to buy? Location vs. Potential –I have to see before I make decision vs. As long as it’s good deal, I don’t have to see before I make a decision –Big house vs. small houses and lots (multiple family) –Buyers have no vision. Investor should see the potential Investor vs. Realtor –Capital gain vs. Commission –Diversify: types, areas, properties –Cash vs. Mortgage –Other inactive peoples’ unused money –Bargain deals, extreme deals and not on MLS list deals –Change realtor friends to be agent

4. Millionaire’s mindset 1.Don’t use your own emergency money Hard money, equity and IRA 2.There is solution for every problem People need place to live Negative cash: raise rent, refinance, change to use 3.Understand tax law Small business vs. more kids How to give kids properties without pain for tax 4.The rich create wealth with creativity Avoid to buy negative cash flow property even it’s good deal 5.Work to learn: Don’t work for money You need freedom in our life 6.Sensitive to change: Hope the best, prepare the worst

5. American’s greatest Fear: Running out of money in retirement I invest in my future! Retirement requirement? 1.25 million –How to reach it by saving from our salary? –Saving money is not enough at all! 3 keys to success: –Opportunity –Knowledge –Action Have faith in yourself; allow yourself to fail and Learn a lesson from the failure

6. Self-directed IRA Never ever tell yourself you can’t afford to invest. Say you can’t afford risk Ourselves’ unused money: –401K, IRA, (Not 529 Education Fund) Roth: No tax for all capital gain Traditional IRA/401K: Tax defer Sep IRA: Tax defer Transfer above to self-directed IRA –www.trustetc.com

7. Tax Shelter Equity loan/line of credit: –up to $100,000 tax deduct Small business benefit –Business expense vs. vacation travel Long-term vs. short-term: 12 months 1031 exchange: tax deferred –45 days identified –180 days closing

8. E-Business Internet search: not as simple as search, find, buy Google earth finder save time and money for the land hunting Buy from owners, landlords, realtors. Deal with seller directly is hard. Sell from internet (be careful!), realtors or by owner Take advantage of email and internet! Get used to it! How to find good deals? Next Section. How to exit? When? Whatever number you set up or whenever you feel to sell Our web www.mbagi.com for Tele-conferences & seminars.www.mbagi.com Take advantage of E business E-office and common office “Under promise, over delivery”

9. Great bargain deals Take advantage of your network: –Realtors’ relationship, owner’s relationship and mutual benefit Show buying power: –Cash closing, flexible closing time, waiver inspection, waiver finance contingency, whole sale price, Under market value home-site –commission sacrificed, friends relationship-life time partners, credit from finder fee, negotiation, realtor relationship, seller relationship Tax deed/lien sale Foreclosure Auction Seller’s extreme situation Not on market yet. Differ from market price

10. Risk analysis of investment Let’s see the safety of investment 0-5 stands for lowest risk to highest risk: 0…Join WLG (last day for Points): $150 one time. Human network investment. No extra cost for potential money. 1 …Use your IRA/401k to invest home-site 2 …Use your equity line or cash to invest home-site, tax deed/lien deal and low ball deal by buying power 3 …Use hard money to invest foreclosure, auction, mortgage note properties. Most of them need cash only. 4 …Use hard money, cash out money or commercial loan to invest big project-industry, commercial land and also properties. Hard to exit. 5 …Use all kinds of loans or pooled money to invest option, stock, mutual fund, foreign money, and purchase business, foreign properties or whatever you are out of control

11. Thank You! Any questions? Dr. Yi Qian yqian@mbagi.com