In order to build a portfolio of properties you need to: #1 Source investment opportunities #2 Acquire the capital to buy your properties On a recent webinar, Raising Capital Academy member, Michael Bugg shared a case study how he secured a VTB and Raised the capital to purchase one of his latest projects. He walked you through the 4 step process how he: ** Found this opportunity- a detailed off-market marketing campaign ** Relationship building with the seller- negotiating directly with the decision maker ** Educated the seller- delivering what the seller was looking for ** Executed the deal- the detailed action steps ... and how you can duplicate this model for your target market.

1. MICHAEL BUGG
YXE REAL ESTATE GROUP
SASKATOON, SK
linkedin.com/drmichaelbugg
facebook.com/YXERealEstateGroupdrmichaelbugg

2. Held Hostage by the Banks and Realtors
Michael Bugg, YXE Real Estate Group
Breaking Free to Grow Our Real Estate Portfolio

3. MY PROMISE TO YOU
¡ Provide value
¡ Step by step guide to source properties and capital
¡ Take you on a real estate fishing trip

4. GRATITUDE
¡ To Russell
¡ To this Community

5. MY JOURNEY - HANGING UP THE STETHOSCOPE

6. MY JOURNEY - SO THE FISHING TRIP BEGAN

7. MY JOURNEY - WHERE THEM DEALS AT?

8. MY JOURNEY - SHOULD I GO BACK TO BEING A VET?
¡ Frustrated
¡ Discouraged
¡ Overwhelmed
¡ Second Guessing

9. MY JOURNEY - DECISION TIME
¡ Can’t compete with the big boys
¡ Knew I had to change something

10. MY JOURNEY - REMINDER TO NEVER STEP BACK

11. DO NOT PASS GO… UNTIL
¡ Do NOT pass go until you START with
WHY!!!
¡ Before we go any further, REMEMBER,
you make your money in real estate
the day you buy!!
¡ I REPEAT, you make your money in
real estate the day you buy!!!

12. BRIEF REVIEW OF VENDOR TAKE BACK MORTGAGES (VTB)
¡ But first, we must understand VTB…
¡ A mortgage held by the vendor; seller financing
¡ A tool in the real estate investors tool belt
¡ …because you’ll need to teach it

13. BRIEF REVIEW OF VENDOR TAKE BACK MORTGAGES (VTB)
V.T.B.B.R.R.R.R.

14. INTRODUCING THE FREE FRAMEWORK
¡ F Find
¡ R Relationship
¡ E Educate
¡ E Execute

15. THE FREE FRAMEWORK - FIND
¡ Where does everyone FIND their real estate deals?
¡ MLS
¡ REALTOR
¡ Wholesaler
¡ Business Partner
¡ Off-Market

16. THE FREE FRAMEWORK - FIND
¡ My number one tip for off-market success…
¡ Become an AREA EXPERT
¡ Eventually, you will become KNOWN as the MARKET EXPERT

17. THE FREE FRAMEWORK - FIND
¡ Why would someone want to sell an apartment?

18. THE FREE FRAMEWORK – FIND
¡ Let’s go fishing!!!

19. THE FREE FRAMEWORK – FIND
LET’S START WITH SPEAR FISHING…
§ In person
§ Online
§ Professionals

20. THE FREE FRAMEWORK – FIND
IT’S TIME TO CAST THE NET!
1. Collect addresses
2. Convert to useful data
3. Pull title information
4. Identify the owners
5. Identify shareholder
6. Sometimes go another layer
7. Find all shareholders with voting rights
8. Contact them all!!!

21. THE FREE FRAMEWORK – FIND
The 4 Ps of OUTREACH
1. Provide value that solves their problems
2. Polite
3. Professional
4. Persistent follow up!

22. THE FREE FRAMEWORK – FIND
WHAT’S IN IT FOR THEM? SOLVE THEIR PROBLEMS
¡ Save commission
¡ Close quickly
¡ Your team can tackle any size of renovation project
¡ They want to know that you are serious and know what
you are talking about

23. THE FREE FRAMEWORK –FIND
BUT… ARE YOU EVEN A DOCTOR?

24. THE FREE FRAMEWORK – RELATIONSHIP

25. THE FREE FRAMEWORK – RELATIONSHIP
¡ Information gathering time!

26. THE FREE FRAMEWORK – RELATIONSHIP
LISTED VS. OFF MARKET
¡ Listed
¡ Very matter of fact
¡ Very rarely have the chance to speak to the vendor
¡ Often offer even before I view; or at least throw out a verbal
offer to make sure were somewhat close
¡ Waste too much time walking through over-priced product
¡ “Whip-Sawed”
¡ Off Market
¡ Go STRAIGHT to walk through
¡ I WANT TO GET FACE TIME WITH THE VENDOR
¡ Talk to the DECISION MAKER

27. THE FREE FRAMEWORK – RELATIONSHIP
THE WALK THROUGH
¡ Listen
¡ Listen
¡ Listen
¡ Listen
¡ Never Assume
¡ Mirror – Never Split the Difference
¡ Be comfortable with silence
¡ This is NOT an interrogation; it’s a conversation.

28. THE FREE FRAMEWORK – RELATIONSHIP
¡ Know
¡ Like
¡ Trust

29. THE FREE FRAMEWORK – RELATIONSHIP
KEY INFORMATION
¡ Why are they selling?
¡ How long have they owned the building?
¡ Can ask differently “When did you purchase the building”?
¡ Build rapport
¡ As comfort grows, deeper level of conversation
¡ What are you plans after you sell this building?
¡ Mortgage balance?
¡ Do they own other properties?

30. THE FREE FRAMEWORK – RELATIONSHIP
THIS IS A GREAT BUILDING!!!
¡ You are building rapport
¡ Do not rip the building apart
¡ Listen to all of the amazing building features - take notes on
this
¡ Do not get hung up on finding every little defect
¡ You will have a chance to do a full thorough walk through
during your conditions removal

31. THE FREE FRAMEWORK – RELATIONSHIP
THE VTB ALARM BELLS SHOULD START RINGING WHEN…
V T B

32. THE FREE FRAMEWORK – EDUCATE

33. THE FREE FRAMEWORK – EDUCATE
¡ Now it’s time to educate
¡ Get a quick read on your vendor
¡ Sophisticated?
¡ Less sophisticated?

34. THE FREE FRAMEWORK – EDUCATE
¡ PROBE

35. THE FREE FRAMEWORK – EDUCATE
¡ BE PATIENT
Be patient with the process.

36. THE FREE FRAMEWORK – EXECUTE
¡ Land that deal!

37. THE FREE FRAMEWORK – EXECUTE
¡ Put it under contract
¡ You can have anything, but you can’t have everything
¡ What is their number one priority
¡ Don’t assume it’s price
PRICE TERMS

38. THE FREE FRAMEWORK – EXECUTE
¡ VTB does NOT mean we overpay!!!

39. THE FREE FRAMEWORK – EXECUTE
HOW WILL YOU EXIT THE VTB?
¡ Begin with the end in mind
¡ NEVER skip due diligence
¡ ONLY counting on market appreciation is not an exit strategy!

40. THE FREE FRAMEWORK – EXECUTE
ROADBLOCKS
¡ If they do not understand, the answer is NO
¡ Make it simple
¡ Vendor concerns about security
¡ Time

41. THE FREE FRAMEWORK – EXECUTE
BENEFITS TO VENDOR
¡ Stream of income
¡ Make money just like the bank
¡ Potentially better returns than other alternatives
¡ Defer their capital gains
¡ Sell a hard to sell building
¡ Potentially higher sale price depending on terms
¡ Fast close

42. THE FREE FRAMEWORK – EXECUTE
BENEFITS TO PURCHASER
¡ Velocity of money
¡ V.T.B.B.R.R.R.R.
¡ Flexible terms
¡ Low down payment? Poor credit?
¡ Fast Close
¡ Lower fees
¡ But don’t skip due diligence

43. THE FREE FRAMEWORK – EXECUTE
¡ The vendor is also a potential future investor
¡ They are already sold on RE investing
¡ They just got to watch you professionally
execute and deliver on everything you said

44. THE FREE FRAMEWORK – LET’S REVIEW
¡ Find
¡ Relationship
¡ Educate
¡ Execute
¡ Duplicate
¡ Optimize
¡ Meaning

45. THANK YOU!!
QUESTIONS?
linkedin.com/drmichaelbugg
facebook.com/YXERealEstateGroupdrmichaelbugg