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Physician Side Gig Webinar
Agenda for Tonight’s Call
• Introduction to Kris Benson and Reliant Real Estate Management
• Key Real Estate Investment Terms/Concepts
• How Should I Evaluate a Syndication/Crowdfunding Opportunity
- Sponsor Due Diligence
• Pawleys Island S.C. Project Offering
- Property/Market Level Due Diligence
• Questions from the group
• Send an email to physiciansidegigs@gmail.com
• Use Comments Section In
Reliant Real Estate
Management Overview
Reliant Real Estate Management, LLC is both an
owner and operator that purchased their first
property in 2005.
Based on the latest 2018 ISS (Inside Self
Storage) Top Operators List, Reliant is the 27th
largest operator in the US. The current portfolio
totals 46 properties with over 3.8MM net
rentable square feet and just over 30,000
units.
Reliant has bought, successfully managed, and
then sold 19 self-storage assets, exceeding
projected investor returns.
About Us
TODD ALLEN
Managing Principal
Todd M. Allen, 42, operates the Reliant Roswell (suburb of Atlanta), Georgia office, and has primary responsibility for
development and acquisition site identification/selection, analysis, underwriting, equity investor relations, and all
daily operations associated with the Reliant-managed facilities. Mr. Allen has been involved in the development and
management of self-storage asset class in excess of 18 years. Mr. Allen is also a Managing Principal of Midgard Self
Storage® and Store Smart® brands. Prior to Reliant, Mr. Allen served as Director of Analyses for O.B. Companies, then
the largest privately held self-storage operator in the United States. Prior to his employment with O.B., Mr. Allen has
served as Vice President of Operation for Meridian Storage, Inc., and as a Regional Manager for Sterling
Management, both companies regional self-storage developers/operators. Educated at Clemson University, Mr.
Allen has been a Director on the Florida Self-Storage Association Board and is a member of the Alabama, Arkansas,
Colorado, Florida, Georgia, Illinois, North Carolina and South Carolina Self-storage Association.
LEWIS POLLACK
Managing Member
Lewis G. Pollack, 72, operates the Reliant Delray Beach, Florida office, and has primary responsibility for
equity investor relations. Mr. Pollack, a long-time corporate executive and entrepreneur, has been involved in
the development and management of self-storage in excess of 30 years. Mr. Pollack is a graduate of Franklin
and Marshall College, Trenton State College, and holds Ph.D. (ABD) from University of California at Los
Angeles. Mr. Pollack is a former Trustee and President of the Florida Self-Storage Association. Mr. Pollack is
also a Managing Principal of Midgard Self Storage® and Store Smart® brands.
KRIS BENSON
Chief Investment Officer
Kris Benson, 38, manages Reliant Investments, a subsidiary of Reliant Real Estate Management. Mr. Benson’s
primary responsibility is to raise and manage equity for Reliant portfolio’s expansion. Kris, an executive sales
professional brings a wealth of knowledge from his experience in the commercial multi-family arena. Prior to
joining Reliant he worked for Intuitive Surgical, developer of the daVinci surgical robot. Mr. Benson graduated
from the State University of Binghamton.
Reliant Real Estate Management Portfolio
27th Largest Self Storage
Operator in U.S. According
to 2018 Inside Self Storage
Number of Properties
Number of Units
Net Rentable Square Feet
Portfolio Valuation Based on Purchase Price
2016-17 Average Annual Revenues
Number of Employees
Portfolio Based on Data Through August of 2018; Subject to Change Due to
Purchase and Sale Activity
46
30,004
3,806,819
$331,188,300
$7,900,000
147
Reliant Real Estate Track Record On Projects Sold
Average Annual Cash on Cash Return w/o Sale 8.1%
Average Project Internal Rate of Return 47.2%
Average Project Equity Multiple 3.02x
Average Investment Holding Period 3.09 Years
Average Total Return on Investment Upon Sale 202%
Average Annual Return on Investment Upon Sale 70.1%
Average Exit Cap Rate 5.95%
Averages reflect 19 projects purchased and sold between March 2007 and April 2018
Averages reflect project level returns
The Alphabet Soup of Real Estate Investing!
ROI, IRR, LTV, Equity Multiple, Cap Rate, DSCR, NOI, CAP EX……..WHAT DOES IT ALL MEAN??
• It seems as though real estate investing has it’s own language. We are here to give you a vocabulary
lesson to educate you so you can talk the talk and dig into any real estate project!
• We will break down the vocabulary into a few distinct categories to help you keep track of what these
terms are describing:
• Rate of Return Terms and Definitions
• Income and Expenses Terms and Definitions
• Debt Terms and Definitions
Rate of Return Terms and Definitions
Rate of return metrics all are here to describe one thing: How much money is the project
projected to make for the investor. The reason there are so many variations is to allow for
investors to try and have one metric they can use to compare very different investment classes.
Here are a couple of key terms that you want to understand regarding rate of returns:
Total Return on Investment (ROI)- ROI tries to directly measure the amount of return on an particular
investment, relative to the investment’s cost. To calculate ROI, the total return of an investment is
divided by the cost of the investment. The result is expressed as a percentage. This percentage makes it
easy to compare returns across all different types of projects.
ROI = Gain From Investment/Cost of Investment
Example: You purchase a home for $100,000. You own that home for 5 years and at the end of
the 5th year you sell that home for $200,000.
Your ROI would be:
Gain From Investment $100,000 ($200,000-$100,000)/Cost of Investment ($100,000) = 100% ROI
Rate of Return Terms and Definitions Continued
Annual ROI:
Ok so we understand ROI but there is a limitation on this metric. Timing is critical. So if an
investment delivers you 100% return that’s fantastic but what really matters is the timeframe in
which it delivers that return. 100% Return over 5 years (20% a year) is much better than 100%
over 20 years (5% a year). Understanding the efficiency of the investment is another key point in
evaluating your real estate investments.
Annual ROI- Total ROI/Holding Period
Example: Using our house example from the previous slide our annual return would be calculated as
$100,000 (Total ROI) / 5 (Holding Period) = 20% Annual Return on Investment (ROI)
Rate of Return Terms and Definitions Continued
IRR:
Wait I have seen Internal Rate of Return (IRR), what is this? How does this compare to ROI or
Annual ROI? The IRR is defined as the discount rate at which the net present value of a set of cash flows
(ie, the initial investment, expressed negatively, and the returns, expressed positively) equals zero.
In more simple terms, it is the rate at which a real estate investment grows (or, heaven forbid,
shrinks). In this sense, you can think of it as a time sensitive compounded annual rate of return.
The IRR is useful because it can provide an “apples-to-apples” comparison of two cash flows with
different distribution timing.
This is a complex metric that essentially measures the rate of return while factoring in the time
value of money.
Click here to access a nice article from Investopedia discussing ROI vs. IRR.
Rate of Return Terms and Definitions Continued
Equity Multiple:
In real estate, equity multiples are just another way to measure the total return paid to an investor. The
equity multiple is found by dividing the cumulative distributions from a project by the original
investment. The equity multiple differs from the IRR in that it does not take into account the length of
the investment period or the time value of money.
Equity multiple = total of all returns / original investment
Using our house example again: $200,000 (total return after sale including principal)/$100,000 (original
investment) =
2.0X Equity Multiple
It has no bearing on how long it took to earn that return. It’s helpful to overlay an equity multiple with
IRR to get a sense of the total return that also accounts for the timing of the payout on that return. The
faster an investor gets that return, the higher the IRR. If an investor gets 100% of that return – all $200K –
in one year, that is a 100% IRR. However, if the investor receives that return in 5 years, the 2x multiple
doesn’t change (Still 2.0x Multiple), but the IRR drops…..
Rate of Return Terms and Definitions Continued
Preferred Return:
As the name suggests, preferred return is a distribution of profits from operations or a capital event
(sale/refinance) distributed to one class of equity before another until a certain rate of return on the
initial investment is reached.
The “pref” is stated as a percentage, such as an 8% preferred return. This preference provides some
comfort to investors since it ensures the investors are paid a certain % of return before the sponsor in a
syndication gets paid any share of the profits.
Let’s assume you invest $100,000 with Reliant in one of our storage facilities with the following
structure; 8% preferred return and a 70/30 split.
Now let’s assume the property profits $10,000 in the first year. How would those monies be
distributed?
First Reliant needs to pay the investors 8% preferred return of $8,000 ($100,000 X 8%)
Second there is $2,000 remaining($10,000 (profit)-$8,000 (preferred return)=$2,000)
That $2,000 is split 70% to you the investor and 30% to Reliant
So the investor would receive $1,400($2,000X70%) and Reliant would receive $600($2,000x30%
Rate of Return Terms and Definitions Continued
Preferred Return Continued:
The idea with this type of structure is to align the interests of the sponsor (Reliant) with the
interests of the investor. Reliant does not get to participate in the profit until the investor has
received their preferred return.
We will discuss equity structure a little later when we go through the Pawleys Island Offering.
Income and Expense Terms and Definitions
Gross Potential Rents:
Gross potential rent (GPR) is the total amount of income a real estate investor can expect to receive
from a purchased property based on "market rent." To determine the GPR, the investor assumes that
100% of the units are occupied and that each tenant pays all of his rent. Another term used for GPR is
gross potential income.
Net Rental Revenue:
Net rental revenue is the total amount of income a property receives once you have factored in
vacancy. (GPR)-(Revenue Lost From Vacancy)= Net Rental Revenue
Let’s assume 1,000 unit storage facility and the market rent is $100 per month
Gross Potential Rent would be $100,000 per month. (1,000 units X $100 per month rent)
Assume vacancy of 10% or 100 units (Cost of that vacancy is 100 units x $100 or $10,000)
So Net Rental Revenue is $90,000 that month due to 10% vacancy
Income and Expense Terms and Definitions
Expenses:
Depending on the asset class you are looking at the expense categories can be all over the board.
Things like Utilities, Taxes, Payroll, Marketing, etc.
You as the investor want to understand where these expenses come from in a pro forma and how
are they projected or the future? Typically these all go up and you as the investor want to make
sure that is being accounted for in the projections.
Fees:
You want to understand what fees as the investor you will be paying at closing and throughout
the hold time of the project. These fees can range all of the board.
Acquisition Fee-Typically a % of the purchase price
Asset Management Fee- % of the gross revenues of the project
Management Fee-% of the gross revenues of the project
Income and Expense Terms and Definitions
If you are going to invest in real estate perhaps these are the two most important terms to understand…..
Net Operating Income (NOI): Net operating income is an indicator as to whether a real-estate investment is
profitable, or has the potential to be profitable. NOI is reported on income and cash flow statements, and
examines the cash flows of an investment property before factors like financing costs(debt) and taxes are taken
into the equation.
Example: Reliant has a self storage facility that has $200,000 in income and $50,000 in operating expenses than
the NOI would be $150,000. Keep in mind that $150,000 does not equate to profit as we have not taken out the
cost of the debt or the taxes.
Net operating income is considered an accurate measure of a property's potential because it is less subject to
manipulation than other figures. NOI can typically only be increased by raising rents or ancillary income items, or
finding lower-cost options for maintenance and repairs.
The increase in valuation of a real estate property or investment is based on the ability to grow NOI. When looking
at a project it is critical to understand the assumptions behind how NOI growth is determined.
Income and Expense Terms and Definitions
Capitalization Rate (Cap Rate): cap rate is calculated as the annual net operating income (NOI) produced by
an asset divided by the purchase price of the property.
Here is the formula for calculating cap rate: Cap Rate = Annual NOI / Purchase Price (Market Value)
Example: We purchase a property for $1Million with an annual NOI of $100,000.
$1MM/$100,000 = 10% Cap Rate
Cap Rates are a complex tool and worth doing some additional research into. As an investor you need to
understand the cap rate of the project when you purchase and what the assumptions of the exit cap rate when
you are planning to sell. The cap rate also determines the value of a property……
Here is an article with some great information on cap rates and how you should use them in your evaluation of
real estate opportunities.
Income and Expense Terms and Definitions
Capitalization Rate (Cap Rate) Continued:
Let’s assume we know the cap rate of a market and the annual NOI. Then we can figure out the value of the
property:
Property Value = Annual NOI/Cap Rate
Example: Let’s assume Reliant buys a storage facility for $1MM with annual NOI of $100,000 so cap rate is 10%
(Cap Rate= Purchase Price/NOI)
Let’s also assume that in 5 years Reliant has grown NOI to $150,000 a year but cap rate in the market is still 10%.
Now what is our property worth? $150,000(NOI)/10% = $1,500,000, it appreciated $500,000!
Now let’s assume in that 5 years the NOI growth was still $50,000 but the cap rate dropped to 8%
Now what is our property worth? $150,000(NOI)/8% = $1,875,000 another $375,000!
It is critically important to understand what assumptions are behind what the projected cap rate is when a
project is expected to be sold. It can have a huge impact on the projected value upon exit….
Debt Terms and Definitions
One of the key items you should understand in any project that potentially poses the most risk for
losing your investment is the leverage/debt structure of the project.
Warren Buffet has two rules of investing: #1 Never Lose Money, #2 Never forget rule #1
Too much debt/leverage can be the number one reason people lose their money. Think 2007-
2009 recession….
Key Terms to Understand:
Loan To Value (LTV):is calculated by dividing the amount borrowed by the appraised value of the
property, expressed as a percentage.
LTV= Mortgage Amount/Appraised value
For example, if you buy a home appraised at $100,000 and make a $10,000 down payment, you will
borrow $90,000 resulting in an LTV ratio of 90% ($90,000/$100,000).
Debt Terms and Definitions
LTV Continued: Typically the higher the loan to value the more risk in losing the project to the bank.
Debt Service Coverage Ratio (DSCR)- is a measure of the cash flow available to pay current mortgage
payments.
DSCR= NOI/Total Debt Service
Example: Reliant owns a property that has $100,000 in NOI and total annual mortgage payments
of $50,000 than the DSCR would be 2.0 ($100K/$50K)
It measures a properties ability to repay its debt. Banks will typically require 1.25 DSCR to make
the original loan.
Term: Length at which the loan terms are good for before it is required to be paid off.
Example: 5 Year Term with 25 year Amortization means the bank is giving you a 5 year loan with
the loan payment amortized over 25 years. In 5 years you are going to have a balloon payment
I am ready to invest in a syndication? Now what?
What is a syndication? Real Estate Syndication is an effective way for investors to pool their financial and
intellectual resources to invest in properties and projects much bigger than they could afford or
manage on their own.
Although real estate syndication has been around for decades, until recently and before the advent of
crowdfunding, syndicated investments were difficult for individual investors to access. You had to
“know” somebody.
Requirements to participate: You Must Be An Accredited Investor
Most syndications require that you are an accredited investor. To be an accredited investor, a person
must have an annual income exceeding $200,000, or $300,000 for joint income, for the last two years
with expectation of earning the same or higher income in the current year.
A person is also considered an accredited investor if he has a net worth exceeding $1 million, either
individually or jointly with his spouse.
I am ready to invest in a syndication? Now what?
OK, I am an accredited investor how do I evaluate a syndication opportunity?
• Due Diligence on The Sponsor
Now I am obviously biased but I have seen a lot of syndication in my experience. If there was one area I
would spend the most time on it would be with due diligence on the sponsor.
You are trusting that company with a large chunk of your money to go out an do the right things.
Spend time understand who you are partnering with and what they are about. Everyone is going to be
professional and excited when things are going right, when things go wrong is when people show their
true colors.
A great sponsor can take a poor deal and make it average, a bad sponsor can take a great deal and
make it awful.
Due Diligence on The Sponsor
• Track Record- History is not a perfect predictor of future events but it’s a pretty good indicator of what is going
to happen in the future.
• Understand not only what projects have been sold but also the ones they are still holding. How are those doing
versus projections?
• What is the experience of the people running the deal? Is their experience in that asset class?
• Have they been through a real estate cycle or are they just starting?
• What happens if one of the key principals dies?
• Do they have skin in the game? Why should I invest if you as the sponsor are not willing to?
• Google! You would be amazed at what you will find with a Google search
• If you can go visit their office or Facetime them. Are they operating out of their basement or is there a business
in place?
• Read the subscription documents!!! Its not fun but that’s the rules the operator has to live by….
• Here is a great article on sponsor due diligence from The Real Estate Crowdfunding Review
Due Diligence on an Actual Reliant Offering
This is by no means an exhaustive discussion on what you need to evaluate to ensure an investment is
successful but I am happy to share what Reliant looks for in an investment.
Please note that some of the statements contained on the Reliant webinar or the investment summary
are forward-looking statements. You should not rely upon forward-looking statements as predictions of
future events. These statements involve known and unknown risks, uncertainties, and other factors that
may cause the investment’s actual results, levels of activity, performance, or achievements to be
materially and adversely different from those expressed or implied by these forward-looking
statements. Although Reliant believes that the expectations reflected in the forward-looking
statements are reasonable, guarantees of future results, levels of activity, performance or achievements
cannot be made.
This investment is being offering pursuant to an exemption from registration under Regulation D of
the Securities Act of 1933, specifically Section 506(c). As such, only investors who are verified as being
“accredited investors” (pursuant to verification proceeds promulgated by Reliant) will be able to invest
in this opportunity (and only upon receipt, review and execution of the definitive offering documents).
Midgard Pawley’s Island Project Overview
Lender Loan
$4,750,000
Equity Raise
$3,409,802
Total All In Cost
$8,159,803
The investment opportunity is to purchase Pawleys self-storage, a Class B 384 unit facility in
Pawley’s Island, SC for $4,827,874. We will rebrand the facility and complete a 176 unit
expansion (17,050 square feet) expansion of climate controlled units along with the addition
of a retail office and apartment along Ocean Highway (US 17). Our all in total cost of the
project is $8,159,803.
Click here to visit their current website.
Reliant has secured a 3 year bridge loan for $4,750,000 andwill be raising $3,409,802 from
investors to fund the purchase and the construction costs of the expansion . We project a 6
year hold with a 113% return or 19% per year including the sale. The investment summary
includes a refinance in Year 3 at 70% LTV.
This project is a clear cut value add opportunity. The property is currently being
“undermanaged” which allows Reliant and it’s investors numerous opportunities to drive
ancillary income on the property. Currently the property only has 12% participation in tenant
insurance , no U-Haul rentals, and late and admin fees which are currently not being charged.
Current facility is 93% occupied and the average occupancy across the 7 competitors in the
market is 96% which demonstrates a very high demand for storage in the area.
PROJECT OVERVIEW
Midgard Pawleys Island Summary Aerial View
PROPERTY SUMMARY
Reliant will purchase the 49 Library
Lane self-storage site and Ocean
Highway Frontage Lot.
Reliant will build a new retail office on
the frontage lot along with a managers
apartment to maximize the frontage
on Ocean Highway (SR 17). The traffic
count on SR 17 is over 33,000 cars a
day.
Pawley’s Self Storage –
4.37 acres
Ocean Highway
Frontage Lot – 0.64
acres
Pawley’s Self Storage –
4.37 acres
Ocean Highway
Frontage Lot – 0.64
acres
Midgard Pawleys Island Proposed Expansion
PROPERTY SUMMARY
Reliant will build out an additional
17,050 square feet of climate
controlled units to satisfy undersupply
in the market.
The expansion of 17,050 square feet
increases the gross potential rents by a
potential $25,020 per month.
Proposed Expansion Proposed Expansion
Proposed
Expansion
j
VALUE & OPPORTUNITY
MARKET FUNDAMENTALS
Total projected ROI in year 6 including
sale is projected to be 113%
Investors are projected to receive a
19% annual returnover the 6 year
hold period including sale
$100,000 invested is projected to
return $213,000 at sale in Year 6
INVESTMENT SUMMARY
Project
Highlights
INVESTMENT ECONOMICS
LOCATION AND DEMOGRAPHICS
Population growth rate in a 1,3,5,10
mile radius of the property was
10.5% from 2010-2018.
In a 5 mile radius the median
household income $60,300
which is 28% more than the
state average (Median
Income in SC is $46,898)
Traffic Count of over 33,000 cars per
day
The 7 competitors in the market
average 96% occupancy.
The 4 facilities that are in Pawleys
Island have an average
occupancy of 99%
Current rents are 17% below
market rents for climate and 26%
below market rents for non
climate controlled units
Current Physical Occupancy of 93%
Average competitor occupancy of
91%
Expansion of 17,050 square feet adds a
$25,020 per month in gross potential rents
Current operator does not offer U-Haul,
charge late fees, admin fees, or
participate in tenant insurance in a
meaningful way.
At a 50bps improvement in the exit cap
rate at Year 6 to 6.5% the total ROI
improves to 139% versus original 113% or
23% per year versus original 19%.
Pawleys Island
Asset Photos
PROPERTY SUMMARY
The following information is solely an investment summary provided to prospective investors. This information is not an offering to sell either a security or a solicitation to sell a security. At the request of a recipient, the
Company will provide appropriate offering documents including but not limited to a subscription agreement and the company operating agreement. The managers of the company (Managers) in no way guarantees the
projections contained herein. Real estate values, income, expenses and development costs are all affected by a multitude of forces outside the Managers control. This investment is illiquid and only those persons that are able and
willing to risk their entire investment should participate. Please consult your attorney, CPA and/or professional financial advisor regarding the suitability of an investment by you.
Midgard Pawleys Island Business Plan Overview
• Build additional 17,050 square feet of climate controlled units
• Utilize Frontage parcel on Ocean Highway (SR17) to build retail office and onsite manager
apartment
• Lease up units to physical occupancy (88%) and economic occupancy (82%) stabilization in
month 27
• Launch U-Haul rental program and institute late fees and admin fees to tenant base
• Drive participation of tenant insurance to 50%
Key Pro Forma Assumptions:
• Projected 6 Year hold period
• Lease up rate units: 1% per month pre expansion, 2% per month post expansion
• Annual rent growth: 4% year 1, 6% years 2-6
• Exit cap rate:7.0%
• 70% Loan To Value
• Investor returns do not take into account the depreciation tax benefits and returns are net all fees
BUSINESS PLAN OVERVIEW
Midgard Pawleys Island Investment Structure
$50,000 Minimum
Investment of Cash or
Qualified Funds
8% Preferred Return
70%/30% Split Thereafter
Acquisition Fee**
INVESTMENT SUMMARY
Distributions of
Cash Flow From
Sale or Refinance
Minimum Investment
Management Fees**
Distribution of
Cash Flow From
Operations
$157,088
6.0% property management fee
(based on Effective Gross Income)
$50,000 in Cash or Qualified Funds
100% of cash flow to investors
(Class A Members) until they have
received an 8% preferred return
Thereafter, 70% to theInvestors. 30%
to the Manager/Sponsor
100% of proceeds to investors
(Class A Members) until they have
received an 8% preferred return and
100% of their principal investment is
repaid
Thereafter, 70% to the Investors .
30% to the Manager/Sponsor
Structure
Investors
Reliant Real Estate
Total Capitalization
Equity Required
Manager Contribution
Investor
Contribution
(Class A Member)
Investment Period
Development Fee**
Investment Mgmt
Fee*
Limited Liability Company LLC
Class A Members
Class B Members
$8,159,803
$3,409,802
$75,000
$3,334,802
Projected 6 Year Hold
$148,317 (6% of CapEx)
* 0.25% of Equity Raised
** Fees will be paid to Reliant Real Estate Management LLC
or its affiliates
Investor Return Projections
6 Year Total Return on
Investment With Sale: 113%
6 Year Equity Multiple With
Sale: 2.13X
6 Year Average Annual Rate of
Return With Sale: 19%
6 Year Average Return W/O
Sale: 7.0%
INVESTMENT SUMMARY
$100,000 invested is projected to return $213,000 with the project sale in 6 years.
Investment Debt Summary
Total
Loan
Amount:
$4,750,000
Loan To Value
70%
INVESTMENT DEBT SUMMARY
Debt is being provided by City National Bank out of Tampa, FL
• Total Loan Amount: $4,750,000 @ 5.25%
• 3 Year Term
• 24 Months Interest Only
• P&I 12 Months
• Option for 1 Year Extension with 10.5% Debt Yield and 12.5 bps fee
• No Prepayment Penalty
• Loan To Value: 70%
• Projecting refinance in Year 4 at 70% of projected value to return $1,314,511 to
investors or 38% of original investment
• Projecting 6% long term debt in Year 4-6
Resources to Continue Your Real Estate Education
BiggerPockets: www.biggerpockets.com
No matter what it is your are looking to do with real estate, you can find it at BiggerPockets. With
1,182,732 members, BiggerPockets is a movement within the real estate investing community centered
around grassroots, democratized education.
On BiggerPockets, you can: Interact with real life investors and build profitable relationships through the
social network. Ask questions in the forums, read posts on the BiggerPockets blog, or listen to interviews
on the BiggerPockets Podcast to gain knowledge and pick up new skills.
Analyze deals using the property analysis calculators - and print reports to give to lenders, partners, and
others.
Advertise your haves or wants in the Marketplace and start doing business with those in the community.
Questions??
Email Nisha Mehta @ physiciansidegigs@gmail.com and we will answer live on the
webinar.
Any questions we don’t get to we can answer after the webinar in a document and post
it to the group’s page.
Contact Nisha
Nisha will pass any questions you
may have along to get them
answered in a timely manner.
Nisha Mehta
physiciansidegigs@gmail.com

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Commercial Real Estate Investing Terminology and Underwriting Basics

  • 2. Agenda for Tonight’s Call • Introduction to Kris Benson and Reliant Real Estate Management • Key Real Estate Investment Terms/Concepts • How Should I Evaluate a Syndication/Crowdfunding Opportunity - Sponsor Due Diligence • Pawleys Island S.C. Project Offering - Property/Market Level Due Diligence • Questions from the group • Send an email to physiciansidegigs@gmail.com • Use Comments Section In
  • 3. Reliant Real Estate Management Overview Reliant Real Estate Management, LLC is both an owner and operator that purchased their first property in 2005. Based on the latest 2018 ISS (Inside Self Storage) Top Operators List, Reliant is the 27th largest operator in the US. The current portfolio totals 46 properties with over 3.8MM net rentable square feet and just over 30,000 units. Reliant has bought, successfully managed, and then sold 19 self-storage assets, exceeding projected investor returns.
  • 4. About Us TODD ALLEN Managing Principal Todd M. Allen, 42, operates the Reliant Roswell (suburb of Atlanta), Georgia office, and has primary responsibility for development and acquisition site identification/selection, analysis, underwriting, equity investor relations, and all daily operations associated with the Reliant-managed facilities. Mr. Allen has been involved in the development and management of self-storage asset class in excess of 18 years. Mr. Allen is also a Managing Principal of Midgard Self Storage® and Store Smart® brands. Prior to Reliant, Mr. Allen served as Director of Analyses for O.B. Companies, then the largest privately held self-storage operator in the United States. Prior to his employment with O.B., Mr. Allen has served as Vice President of Operation for Meridian Storage, Inc., and as a Regional Manager for Sterling Management, both companies regional self-storage developers/operators. Educated at Clemson University, Mr. Allen has been a Director on the Florida Self-Storage Association Board and is a member of the Alabama, Arkansas, Colorado, Florida, Georgia, Illinois, North Carolina and South Carolina Self-storage Association. LEWIS POLLACK Managing Member Lewis G. Pollack, 72, operates the Reliant Delray Beach, Florida office, and has primary responsibility for equity investor relations. Mr. Pollack, a long-time corporate executive and entrepreneur, has been involved in the development and management of self-storage in excess of 30 years. Mr. Pollack is a graduate of Franklin and Marshall College, Trenton State College, and holds Ph.D. (ABD) from University of California at Los Angeles. Mr. Pollack is a former Trustee and President of the Florida Self-Storage Association. Mr. Pollack is also a Managing Principal of Midgard Self Storage® and Store Smart® brands. KRIS BENSON Chief Investment Officer Kris Benson, 38, manages Reliant Investments, a subsidiary of Reliant Real Estate Management. Mr. Benson’s primary responsibility is to raise and manage equity for Reliant portfolio’s expansion. Kris, an executive sales professional brings a wealth of knowledge from his experience in the commercial multi-family arena. Prior to joining Reliant he worked for Intuitive Surgical, developer of the daVinci surgical robot. Mr. Benson graduated from the State University of Binghamton.
  • 5. Reliant Real Estate Management Portfolio 27th Largest Self Storage Operator in U.S. According to 2018 Inside Self Storage Number of Properties Number of Units Net Rentable Square Feet Portfolio Valuation Based on Purchase Price 2016-17 Average Annual Revenues Number of Employees Portfolio Based on Data Through August of 2018; Subject to Change Due to Purchase and Sale Activity 46 30,004 3,806,819 $331,188,300 $7,900,000 147
  • 6. Reliant Real Estate Track Record On Projects Sold Average Annual Cash on Cash Return w/o Sale 8.1% Average Project Internal Rate of Return 47.2% Average Project Equity Multiple 3.02x Average Investment Holding Period 3.09 Years Average Total Return on Investment Upon Sale 202% Average Annual Return on Investment Upon Sale 70.1% Average Exit Cap Rate 5.95% Averages reflect 19 projects purchased and sold between March 2007 and April 2018 Averages reflect project level returns
  • 7. The Alphabet Soup of Real Estate Investing! ROI, IRR, LTV, Equity Multiple, Cap Rate, DSCR, NOI, CAP EX……..WHAT DOES IT ALL MEAN?? • It seems as though real estate investing has it’s own language. We are here to give you a vocabulary lesson to educate you so you can talk the talk and dig into any real estate project! • We will break down the vocabulary into a few distinct categories to help you keep track of what these terms are describing: • Rate of Return Terms and Definitions • Income and Expenses Terms and Definitions • Debt Terms and Definitions
  • 8. Rate of Return Terms and Definitions Rate of return metrics all are here to describe one thing: How much money is the project projected to make for the investor. The reason there are so many variations is to allow for investors to try and have one metric they can use to compare very different investment classes. Here are a couple of key terms that you want to understand regarding rate of returns: Total Return on Investment (ROI)- ROI tries to directly measure the amount of return on an particular investment, relative to the investment’s cost. To calculate ROI, the total return of an investment is divided by the cost of the investment. The result is expressed as a percentage. This percentage makes it easy to compare returns across all different types of projects. ROI = Gain From Investment/Cost of Investment Example: You purchase a home for $100,000. You own that home for 5 years and at the end of the 5th year you sell that home for $200,000. Your ROI would be: Gain From Investment $100,000 ($200,000-$100,000)/Cost of Investment ($100,000) = 100% ROI
  • 9. Rate of Return Terms and Definitions Continued Annual ROI: Ok so we understand ROI but there is a limitation on this metric. Timing is critical. So if an investment delivers you 100% return that’s fantastic but what really matters is the timeframe in which it delivers that return. 100% Return over 5 years (20% a year) is much better than 100% over 20 years (5% a year). Understanding the efficiency of the investment is another key point in evaluating your real estate investments. Annual ROI- Total ROI/Holding Period Example: Using our house example from the previous slide our annual return would be calculated as $100,000 (Total ROI) / 5 (Holding Period) = 20% Annual Return on Investment (ROI)
  • 10. Rate of Return Terms and Definitions Continued IRR: Wait I have seen Internal Rate of Return (IRR), what is this? How does this compare to ROI or Annual ROI? The IRR is defined as the discount rate at which the net present value of a set of cash flows (ie, the initial investment, expressed negatively, and the returns, expressed positively) equals zero. In more simple terms, it is the rate at which a real estate investment grows (or, heaven forbid, shrinks). In this sense, you can think of it as a time sensitive compounded annual rate of return. The IRR is useful because it can provide an “apples-to-apples” comparison of two cash flows with different distribution timing. This is a complex metric that essentially measures the rate of return while factoring in the time value of money. Click here to access a nice article from Investopedia discussing ROI vs. IRR.
  • 11. Rate of Return Terms and Definitions Continued Equity Multiple: In real estate, equity multiples are just another way to measure the total return paid to an investor. The equity multiple is found by dividing the cumulative distributions from a project by the original investment. The equity multiple differs from the IRR in that it does not take into account the length of the investment period or the time value of money. Equity multiple = total of all returns / original investment Using our house example again: $200,000 (total return after sale including principal)/$100,000 (original investment) = 2.0X Equity Multiple It has no bearing on how long it took to earn that return. It’s helpful to overlay an equity multiple with IRR to get a sense of the total return that also accounts for the timing of the payout on that return. The faster an investor gets that return, the higher the IRR. If an investor gets 100% of that return – all $200K – in one year, that is a 100% IRR. However, if the investor receives that return in 5 years, the 2x multiple doesn’t change (Still 2.0x Multiple), but the IRR drops…..
  • 12. Rate of Return Terms and Definitions Continued Preferred Return: As the name suggests, preferred return is a distribution of profits from operations or a capital event (sale/refinance) distributed to one class of equity before another until a certain rate of return on the initial investment is reached. The “pref” is stated as a percentage, such as an 8% preferred return. This preference provides some comfort to investors since it ensures the investors are paid a certain % of return before the sponsor in a syndication gets paid any share of the profits. Let’s assume you invest $100,000 with Reliant in one of our storage facilities with the following structure; 8% preferred return and a 70/30 split. Now let’s assume the property profits $10,000 in the first year. How would those monies be distributed? First Reliant needs to pay the investors 8% preferred return of $8,000 ($100,000 X 8%) Second there is $2,000 remaining($10,000 (profit)-$8,000 (preferred return)=$2,000) That $2,000 is split 70% to you the investor and 30% to Reliant So the investor would receive $1,400($2,000X70%) and Reliant would receive $600($2,000x30%
  • 13. Rate of Return Terms and Definitions Continued Preferred Return Continued: The idea with this type of structure is to align the interests of the sponsor (Reliant) with the interests of the investor. Reliant does not get to participate in the profit until the investor has received their preferred return. We will discuss equity structure a little later when we go through the Pawleys Island Offering.
  • 14. Income and Expense Terms and Definitions Gross Potential Rents: Gross potential rent (GPR) is the total amount of income a real estate investor can expect to receive from a purchased property based on "market rent." To determine the GPR, the investor assumes that 100% of the units are occupied and that each tenant pays all of his rent. Another term used for GPR is gross potential income. Net Rental Revenue: Net rental revenue is the total amount of income a property receives once you have factored in vacancy. (GPR)-(Revenue Lost From Vacancy)= Net Rental Revenue Let’s assume 1,000 unit storage facility and the market rent is $100 per month Gross Potential Rent would be $100,000 per month. (1,000 units X $100 per month rent) Assume vacancy of 10% or 100 units (Cost of that vacancy is 100 units x $100 or $10,000) So Net Rental Revenue is $90,000 that month due to 10% vacancy
  • 15. Income and Expense Terms and Definitions Expenses: Depending on the asset class you are looking at the expense categories can be all over the board. Things like Utilities, Taxes, Payroll, Marketing, etc. You as the investor want to understand where these expenses come from in a pro forma and how are they projected or the future? Typically these all go up and you as the investor want to make sure that is being accounted for in the projections. Fees: You want to understand what fees as the investor you will be paying at closing and throughout the hold time of the project. These fees can range all of the board. Acquisition Fee-Typically a % of the purchase price Asset Management Fee- % of the gross revenues of the project Management Fee-% of the gross revenues of the project
  • 16. Income and Expense Terms and Definitions If you are going to invest in real estate perhaps these are the two most important terms to understand….. Net Operating Income (NOI): Net operating income is an indicator as to whether a real-estate investment is profitable, or has the potential to be profitable. NOI is reported on income and cash flow statements, and examines the cash flows of an investment property before factors like financing costs(debt) and taxes are taken into the equation. Example: Reliant has a self storage facility that has $200,000 in income and $50,000 in operating expenses than the NOI would be $150,000. Keep in mind that $150,000 does not equate to profit as we have not taken out the cost of the debt or the taxes. Net operating income is considered an accurate measure of a property's potential because it is less subject to manipulation than other figures. NOI can typically only be increased by raising rents or ancillary income items, or finding lower-cost options for maintenance and repairs. The increase in valuation of a real estate property or investment is based on the ability to grow NOI. When looking at a project it is critical to understand the assumptions behind how NOI growth is determined.
  • 17. Income and Expense Terms and Definitions Capitalization Rate (Cap Rate): cap rate is calculated as the annual net operating income (NOI) produced by an asset divided by the purchase price of the property. Here is the formula for calculating cap rate: Cap Rate = Annual NOI / Purchase Price (Market Value) Example: We purchase a property for $1Million with an annual NOI of $100,000. $1MM/$100,000 = 10% Cap Rate Cap Rates are a complex tool and worth doing some additional research into. As an investor you need to understand the cap rate of the project when you purchase and what the assumptions of the exit cap rate when you are planning to sell. The cap rate also determines the value of a property…… Here is an article with some great information on cap rates and how you should use them in your evaluation of real estate opportunities.
  • 18. Income and Expense Terms and Definitions Capitalization Rate (Cap Rate) Continued: Let’s assume we know the cap rate of a market and the annual NOI. Then we can figure out the value of the property: Property Value = Annual NOI/Cap Rate Example: Let’s assume Reliant buys a storage facility for $1MM with annual NOI of $100,000 so cap rate is 10% (Cap Rate= Purchase Price/NOI) Let’s also assume that in 5 years Reliant has grown NOI to $150,000 a year but cap rate in the market is still 10%. Now what is our property worth? $150,000(NOI)/10% = $1,500,000, it appreciated $500,000! Now let’s assume in that 5 years the NOI growth was still $50,000 but the cap rate dropped to 8% Now what is our property worth? $150,000(NOI)/8% = $1,875,000 another $375,000! It is critically important to understand what assumptions are behind what the projected cap rate is when a project is expected to be sold. It can have a huge impact on the projected value upon exit….
  • 19. Debt Terms and Definitions One of the key items you should understand in any project that potentially poses the most risk for losing your investment is the leverage/debt structure of the project. Warren Buffet has two rules of investing: #1 Never Lose Money, #2 Never forget rule #1 Too much debt/leverage can be the number one reason people lose their money. Think 2007- 2009 recession…. Key Terms to Understand: Loan To Value (LTV):is calculated by dividing the amount borrowed by the appraised value of the property, expressed as a percentage. LTV= Mortgage Amount/Appraised value For example, if you buy a home appraised at $100,000 and make a $10,000 down payment, you will borrow $90,000 resulting in an LTV ratio of 90% ($90,000/$100,000).
  • 20. Debt Terms and Definitions LTV Continued: Typically the higher the loan to value the more risk in losing the project to the bank. Debt Service Coverage Ratio (DSCR)- is a measure of the cash flow available to pay current mortgage payments. DSCR= NOI/Total Debt Service Example: Reliant owns a property that has $100,000 in NOI and total annual mortgage payments of $50,000 than the DSCR would be 2.0 ($100K/$50K) It measures a properties ability to repay its debt. Banks will typically require 1.25 DSCR to make the original loan. Term: Length at which the loan terms are good for before it is required to be paid off. Example: 5 Year Term with 25 year Amortization means the bank is giving you a 5 year loan with the loan payment amortized over 25 years. In 5 years you are going to have a balloon payment
  • 21. I am ready to invest in a syndication? Now what? What is a syndication? Real Estate Syndication is an effective way for investors to pool their financial and intellectual resources to invest in properties and projects much bigger than they could afford or manage on their own. Although real estate syndication has been around for decades, until recently and before the advent of crowdfunding, syndicated investments were difficult for individual investors to access. You had to “know” somebody. Requirements to participate: You Must Be An Accredited Investor Most syndications require that you are an accredited investor. To be an accredited investor, a person must have an annual income exceeding $200,000, or $300,000 for joint income, for the last two years with expectation of earning the same or higher income in the current year. A person is also considered an accredited investor if he has a net worth exceeding $1 million, either individually or jointly with his spouse.
  • 22. I am ready to invest in a syndication? Now what? OK, I am an accredited investor how do I evaluate a syndication opportunity? • Due Diligence on The Sponsor Now I am obviously biased but I have seen a lot of syndication in my experience. If there was one area I would spend the most time on it would be with due diligence on the sponsor. You are trusting that company with a large chunk of your money to go out an do the right things. Spend time understand who you are partnering with and what they are about. Everyone is going to be professional and excited when things are going right, when things go wrong is when people show their true colors. A great sponsor can take a poor deal and make it average, a bad sponsor can take a great deal and make it awful.
  • 23. Due Diligence on The Sponsor • Track Record- History is not a perfect predictor of future events but it’s a pretty good indicator of what is going to happen in the future. • Understand not only what projects have been sold but also the ones they are still holding. How are those doing versus projections? • What is the experience of the people running the deal? Is their experience in that asset class? • Have they been through a real estate cycle or are they just starting? • What happens if one of the key principals dies? • Do they have skin in the game? Why should I invest if you as the sponsor are not willing to? • Google! You would be amazed at what you will find with a Google search • If you can go visit their office or Facetime them. Are they operating out of their basement or is there a business in place? • Read the subscription documents!!! Its not fun but that’s the rules the operator has to live by…. • Here is a great article on sponsor due diligence from The Real Estate Crowdfunding Review
  • 24. Due Diligence on an Actual Reliant Offering This is by no means an exhaustive discussion on what you need to evaluate to ensure an investment is successful but I am happy to share what Reliant looks for in an investment. Please note that some of the statements contained on the Reliant webinar or the investment summary are forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. These statements involve known and unknown risks, uncertainties, and other factors that may cause the investment’s actual results, levels of activity, performance, or achievements to be materially and adversely different from those expressed or implied by these forward-looking statements. Although Reliant believes that the expectations reflected in the forward-looking statements are reasonable, guarantees of future results, levels of activity, performance or achievements cannot be made. This investment is being offering pursuant to an exemption from registration under Regulation D of the Securities Act of 1933, specifically Section 506(c). As such, only investors who are verified as being “accredited investors” (pursuant to verification proceeds promulgated by Reliant) will be able to invest in this opportunity (and only upon receipt, review and execution of the definitive offering documents).
  • 25. Midgard Pawley’s Island Project Overview Lender Loan $4,750,000 Equity Raise $3,409,802 Total All In Cost $8,159,803 The investment opportunity is to purchase Pawleys self-storage, a Class B 384 unit facility in Pawley’s Island, SC for $4,827,874. We will rebrand the facility and complete a 176 unit expansion (17,050 square feet) expansion of climate controlled units along with the addition of a retail office and apartment along Ocean Highway (US 17). Our all in total cost of the project is $8,159,803. Click here to visit their current website. Reliant has secured a 3 year bridge loan for $4,750,000 andwill be raising $3,409,802 from investors to fund the purchase and the construction costs of the expansion . We project a 6 year hold with a 113% return or 19% per year including the sale. The investment summary includes a refinance in Year 3 at 70% LTV. This project is a clear cut value add opportunity. The property is currently being “undermanaged” which allows Reliant and it’s investors numerous opportunities to drive ancillary income on the property. Currently the property only has 12% participation in tenant insurance , no U-Haul rentals, and late and admin fees which are currently not being charged. Current facility is 93% occupied and the average occupancy across the 7 competitors in the market is 96% which demonstrates a very high demand for storage in the area. PROJECT OVERVIEW
  • 26. Midgard Pawleys Island Summary Aerial View PROPERTY SUMMARY Reliant will purchase the 49 Library Lane self-storage site and Ocean Highway Frontage Lot. Reliant will build a new retail office on the frontage lot along with a managers apartment to maximize the frontage on Ocean Highway (SR 17). The traffic count on SR 17 is over 33,000 cars a day. Pawley’s Self Storage – 4.37 acres Ocean Highway Frontage Lot – 0.64 acres Pawley’s Self Storage – 4.37 acres Ocean Highway Frontage Lot – 0.64 acres
  • 27. Midgard Pawleys Island Proposed Expansion PROPERTY SUMMARY Reliant will build out an additional 17,050 square feet of climate controlled units to satisfy undersupply in the market. The expansion of 17,050 square feet increases the gross potential rents by a potential $25,020 per month. Proposed Expansion Proposed Expansion Proposed Expansion
  • 28. j VALUE & OPPORTUNITY MARKET FUNDAMENTALS Total projected ROI in year 6 including sale is projected to be 113% Investors are projected to receive a 19% annual returnover the 6 year hold period including sale $100,000 invested is projected to return $213,000 at sale in Year 6 INVESTMENT SUMMARY Project Highlights INVESTMENT ECONOMICS LOCATION AND DEMOGRAPHICS Population growth rate in a 1,3,5,10 mile radius of the property was 10.5% from 2010-2018. In a 5 mile radius the median household income $60,300 which is 28% more than the state average (Median Income in SC is $46,898) Traffic Count of over 33,000 cars per day The 7 competitors in the market average 96% occupancy. The 4 facilities that are in Pawleys Island have an average occupancy of 99% Current rents are 17% below market rents for climate and 26% below market rents for non climate controlled units Current Physical Occupancy of 93% Average competitor occupancy of 91% Expansion of 17,050 square feet adds a $25,020 per month in gross potential rents Current operator does not offer U-Haul, charge late fees, admin fees, or participate in tenant insurance in a meaningful way. At a 50bps improvement in the exit cap rate at Year 6 to 6.5% the total ROI improves to 139% versus original 113% or 23% per year versus original 19%.
  • 29. Pawleys Island Asset Photos PROPERTY SUMMARY The following information is solely an investment summary provided to prospective investors. This information is not an offering to sell either a security or a solicitation to sell a security. At the request of a recipient, the Company will provide appropriate offering documents including but not limited to a subscription agreement and the company operating agreement. The managers of the company (Managers) in no way guarantees the projections contained herein. Real estate values, income, expenses and development costs are all affected by a multitude of forces outside the Managers control. This investment is illiquid and only those persons that are able and willing to risk their entire investment should participate. Please consult your attorney, CPA and/or professional financial advisor regarding the suitability of an investment by you.
  • 30. Midgard Pawleys Island Business Plan Overview • Build additional 17,050 square feet of climate controlled units • Utilize Frontage parcel on Ocean Highway (SR17) to build retail office and onsite manager apartment • Lease up units to physical occupancy (88%) and economic occupancy (82%) stabilization in month 27 • Launch U-Haul rental program and institute late fees and admin fees to tenant base • Drive participation of tenant insurance to 50% Key Pro Forma Assumptions: • Projected 6 Year hold period • Lease up rate units: 1% per month pre expansion, 2% per month post expansion • Annual rent growth: 4% year 1, 6% years 2-6 • Exit cap rate:7.0% • 70% Loan To Value • Investor returns do not take into account the depreciation tax benefits and returns are net all fees BUSINESS PLAN OVERVIEW
  • 31. Midgard Pawleys Island Investment Structure $50,000 Minimum Investment of Cash or Qualified Funds 8% Preferred Return 70%/30% Split Thereafter Acquisition Fee** INVESTMENT SUMMARY Distributions of Cash Flow From Sale or Refinance Minimum Investment Management Fees** Distribution of Cash Flow From Operations $157,088 6.0% property management fee (based on Effective Gross Income) $50,000 in Cash or Qualified Funds 100% of cash flow to investors (Class A Members) until they have received an 8% preferred return Thereafter, 70% to theInvestors. 30% to the Manager/Sponsor 100% of proceeds to investors (Class A Members) until they have received an 8% preferred return and 100% of their principal investment is repaid Thereafter, 70% to the Investors . 30% to the Manager/Sponsor Structure Investors Reliant Real Estate Total Capitalization Equity Required Manager Contribution Investor Contribution (Class A Member) Investment Period Development Fee** Investment Mgmt Fee* Limited Liability Company LLC Class A Members Class B Members $8,159,803 $3,409,802 $75,000 $3,334,802 Projected 6 Year Hold $148,317 (6% of CapEx) * 0.25% of Equity Raised ** Fees will be paid to Reliant Real Estate Management LLC or its affiliates
  • 32. Investor Return Projections 6 Year Total Return on Investment With Sale: 113% 6 Year Equity Multiple With Sale: 2.13X 6 Year Average Annual Rate of Return With Sale: 19% 6 Year Average Return W/O Sale: 7.0% INVESTMENT SUMMARY $100,000 invested is projected to return $213,000 with the project sale in 6 years.
  • 33. Investment Debt Summary Total Loan Amount: $4,750,000 Loan To Value 70% INVESTMENT DEBT SUMMARY Debt is being provided by City National Bank out of Tampa, FL • Total Loan Amount: $4,750,000 @ 5.25% • 3 Year Term • 24 Months Interest Only • P&I 12 Months • Option for 1 Year Extension with 10.5% Debt Yield and 12.5 bps fee • No Prepayment Penalty • Loan To Value: 70% • Projecting refinance in Year 4 at 70% of projected value to return $1,314,511 to investors or 38% of original investment • Projecting 6% long term debt in Year 4-6
  • 34. Resources to Continue Your Real Estate Education BiggerPockets: www.biggerpockets.com No matter what it is your are looking to do with real estate, you can find it at BiggerPockets. With 1,182,732 members, BiggerPockets is a movement within the real estate investing community centered around grassroots, democratized education. On BiggerPockets, you can: Interact with real life investors and build profitable relationships through the social network. Ask questions in the forums, read posts on the BiggerPockets blog, or listen to interviews on the BiggerPockets Podcast to gain knowledge and pick up new skills. Analyze deals using the property analysis calculators - and print reports to give to lenders, partners, and others. Advertise your haves or wants in the Marketplace and start doing business with those in the community.
  • 35. Questions?? Email Nisha Mehta @ physiciansidegigs@gmail.com and we will answer live on the webinar. Any questions we don’t get to we can answer after the webinar in a document and post it to the group’s page.
  • 36. Contact Nisha Nisha will pass any questions you may have along to get them answered in a timely manner. Nisha Mehta physiciansidegigs@gmail.com