PPT presentation for 3-hour agency law class titled \'Attracting Investor Clients\' taught by Marty Boardman of the Arizona Academy of Real Estate

1. Attracting Investor Clients
Presented by the Arizona Academy
of Real Estate – 8/2/12
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’

5. BREAKING NEWS!
Inventory Levels at Record Lows
Active Listing Count
13,440
Pending/AWC Listing Count
18,349
Active Listing Count (SF Detached)
10,613
Closed Sales (Last 30 Days)
6,336
Supply
2.1 months
Arizona Regional Multiple Listing Service
July 25th, 2012

6. BREAKING NEWS!
Market Update:
From Cromford Report:
• Median sales price up 35.5% year
over year
• Average price per square foot
down 3% in last 30 days
• Normal sales 56% market share
• REOs 14.2% market share
• Short sales 29.7% market share
*Michael Orr, Cromford Report – July 15th, 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

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.

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

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

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

13. Buy and Holders
• 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 31st, 2012

15. Seller Financing
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

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?

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

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.

26. Funding
Hard SD IRA
Money
Partners

27. Hard Money
• 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

29. Self Directed IRAs
• $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

31. Price Per Square Foot
• Normal $115.31
• Short Sale $73.87
• REO $72.36
*May 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

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

34. 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

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

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

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

45. 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

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