DRAFTING YOUR STORY INTO A PRESENTATION

OVER THE NEXT 90 DAYS, WE WILL COVER THE FOLLOWING

MODULE 1

Drafting your Vision

MODULE 2

Identifying the Gap

MODULE 3

Identifying your Obstacles

MODULE 4

Mastering your Money Mindset

MODULE 5

Joint Ventures

MODULE 6

How to Make Big Money with Small Apartments

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MODULE 7Getting and Negotiating The

DealsMODULE 8

Talking to a Potential Investor or Joint Venture Partner

MODULE 9Drafting your Story into a

PresentationMODULE 10

Positioning yourself to Attract Joint Venture Partners

MODULE 11Getting Online

MODULE 12Systematizing the Process

WELCOME

Change your perception of success while building $5,000/month passive income through real estate investing.

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ANY QUESTIONS FROM MODULE 8?

LOOKING FOR INVESTORS

IS THE ENTREPRENEUR’S

VERSION OF A JOB INTERVIEW.

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TIPS FOR AN SUCCESSFULINVESTOR PRESENTATION

•Make sure you look the part.

•Your goal is to hook them on your idea. They likely won’t decide on the spot so do what you can to keep them intrigued.

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•Understand going in that the investor will be more concerned with how the deal will benefit them.

•Hit them with a strong message aimed at holding their attention throughout the presentation.

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•Make sure your pitch is short and to the point. You may be provided with 30 minutes but make sure your presentation is only 15.

• Investors have short attention spans. By keeping your presentation to the point, you have left enough time for questions AND insured you are able to complete your presentation.

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• Your passion

will be the an

effective tool

during your

pitch - so

make sure you

are

demonstrating

it.

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•Leave your pride at the door when making a pitch and take your time answering all of your potential investor’s questions and concerns.

•Use your brand logo and colours

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•Do not place important content at the bottom of the slide/page. You start with the most important information and work your way down.

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Maximize use of graphs, charts,

and other relevant graphics

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ELEVATOR PITCHDo you have one?

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•This is the pitch you

can provide in an

elevator, at a

cocktail party or

during small talk

with friends.

•You need be to able

to tailor your pitch

to who you are

talking to as this will

help your pitch

resonate with them.15

It should never be more than one minute.

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•It must be short and to the point, making certain it showcases your knowledge and expertise.

•Need to make sure your pitch is well crafted and can be delivered in an unhurried but practiced manner.

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•This is not an easy pitch to develop as you need to condense all of the information about your business and plan into one brief summary.

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BUSINESS SUMMARY STATEMENT

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•Your company’s reason for

being?

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• Think “who, what, when, where, why, how”

• Be concise

• Avoid jargon. Your audience is not your customers – they may not know your niche at all

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•When raising money, you want to make sure you have a carefully thought out summary of your investment proposal and make sure you are addressing their chief concerns. Things to consider are:

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• The problem you are solving

• The market you are operating in

• Expected revenues as well as supporting documentation

• Your Team

• Exit Plans as you should always have more than one.

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MARKETING

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You are educating your

investor, not selling to

them.

Marketing is a necessary

skill set for a real estate

entrepreneur.

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• Opportunity to sell yourself, rather than your product.

• About the market conditions that will make your investment profitable.

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Examples: Anything

driving the local

economy, employment

rates, infrastructure,

appealing community

attributes.

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YOUR TEAM

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•Review the key members of your team and why you chose them.

•Include previous, relevant accomplishments only.

•Don’t spend too long on each person.

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•What makes your team especially qualified?

•What makes your team the best team to invest with?

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PROBLEMS AND OPPORTUNITIES

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•Identify problems that your company can address.

•Define a large scope ($, %) of opportunities created by those problems.

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•You need to convince investors there are premiums for solving your problem.

•Make sure to provide accurate and current data.

•What competitive advantage does your business bring to the marketplace.

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THE SUCCESSFUL BUSINESS

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•What is your model or strategy?

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•Provide a clear business model. Focus your energy on demonstrating how it is clear and replicable.

•What is the approach you are going to use to conduct business and generate recurring revenue?

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•Describe the fully functioning business: satisfied investors, happy tenants and other elements to help audience “see” the present and the profitable future you envision.

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GOALS & OBJECTIVES

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•Show growth

potential.

•Investors like

to see

longevity and

a stable

marketplace.

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•Share:

•Specific measurable objectives

•Market share objectives

•Revenue/profitability objectives

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•Demonstrate current track record

of goals met/exceeded.

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FINANCIAL PLAN

•What are the financial projections?

•Clearly present your numbers. Having promising

numbers will be the best way to impress.

•Show them the value of your business and how it

will continue to grow.

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EXIT STRATEGY

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•How realistic is

your exit

strategy?

•What is your

plan for enabling

investors to take

their profits

within five years?

•What is your

Plan B and Plan

C?

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SUMMARY OF YOUR STRENGTHS

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•At the end of

your

presentation,

you will want

to summarize

your skills and

the highlights

of what you

had to say.

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Backup and what you can leave with a lender or Investor or ….Not

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So now you’ve completed the 15 minute presentation...

•The first thing you ask is “What about this interests you?

•Not…..”What do you think?”

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•The Binder can be left behind if you have a very analytical Investor – not everyone will be interested in all your back-up.

•The biggest part of this back-up is to build your confidence that you do indeed know what you are talking about.

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REAL ESTATE CAPITALIZER BINDER

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WHO ARE YOU?

• Use this tab to tell the investor about yourself.

• Use any noteworthy information (press, awards) to stand out. These can be real estate or non real estate related.

• Add in a photo of you and I for Branding by Association.

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Investors like impressive people. Impress them.

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ACKNOWLEDGMENTS

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•Lenders tend to live and operate in a society conscious environment. This makes them more impressed with our achievements than some other segments of our society.

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•Lenders also tend to look to others for ratification that someone or something is okay. Once you or someone in your organization has been validated, lenders tend to view you in a higher regard than those who have not yet received such acknowledgments.

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•As a result, any acknowledgments or awards granted to you, your management or your Board of Advisors should be brought to the lender’s attention. By showing value within the context of writing a loan proposal, you can avoid looking immodest. Rather than being offended that you were trying to impress them, they will be impressed they have you as a client.

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TRACK RECORD

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•This tab is extremely important. Use it to show prospective investors that you know how to make money and that you have been successful in the past.

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•If you DO NOT have a track record then I recommend that you put together a spreadsheet outlining all of the deals you have analyzed and provide a brief analysis of each one.

•Analyze 100 deals to show the investor you have obeyed the 100:10:3:1 rule.

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OUR MISSION

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For Tenants: Provide clean, safe and affordable housing.

For Investors: Provide solid returns backed by Saskatchewan Real Estate.

• “I see myself more as a financial educator than a financial advisor. I’ve learned through experience how important it is for my clients to understand all their options when it comes to smart investments for their financial future. My mission is to educate and inspire people to make wise and beneficial decisions that will assist them in obtaining financial independence over multiple generations.”

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•“I believe that the strongest investment for anyone who wants to maximize their future revenue stream is real estate. If you understand how to actualize the most effective use of a property over time, you’ll be able to access that property to generate increased capital flow that can be put to use in a multitude of ways. People don’t realize there are so many different options when it comes to real estate investments. My experience and knowledge in both residential and commercial properties can help to assist each client to understand what investment would best suit their personality.”

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•“Whenever I meet with someone for the first time, they always say they’re a bit overwhelmed by how real estate investing works. It may seem daunting at first but after I thoroughly explain all the steps involved, people are surprised to find out how it is such an easy and effective way to build their investments.”

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•“Our province has so many resource riches. We have potash, oil, agriculture and water. These are integral commodities that will continue to increase in demand all around the world. We’re already witnessing a large influx of population in the province to take advantage of the opportunities these commodities hold. Housing, first and foremost, will be their most important concern. I see an enormous opportunity for all my clients to address that important concern by building their own personal wealth in the process.”

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• “It makes me so happy when my clients call back excited after they’ve accomplished their first investment. I realize that they’re on the road to accomplishing their goals and they can do it all by themselves or they can team up with others who have done it already.

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CREDIT REPORT

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•Obtain a copy of your credit score from www.equifax.ca.

•I prefer to use Equifax. You will want to make sure you receive a report with your score. You can show your investor that you DO NOT miss payments on credit products.

•If you do have damaged credit, highlight it and provide an explanation why.

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BUSINESS MODEL

•Show your investor your business model and how you make money in your business.

•Investors invest with you because they like you as a person. Your job is to show your investor how you plan to make them money.

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BUSINESS PHILOSOPHY OF 3D REAL ESTATE INVESTMENTS

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•Edna and Warren started real estate investing with the equity of their own home in 2007.

•Other than the first two properties, they have primarily built their portfolio of over 380 doors by working with joint venture partners and their investment monies.

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•For the houses they own as joint ventures, most of the time it is a 50/50 split with them being the managing partner and the investor being the money/mortgage partner. Each and every property has its own bank account and joint venture agreement.

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For the apartment buildings, their primary business model is:

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• Buy Under Agreement for Sale

• Renovate

• Optimize

• Increase rents

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• This model increases value and then they finance with a lending institution for long-term holds. Each apartment building is set up as its own corporation with Edna and Warren as the managing partner.

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They earn their share through the work involved. The money partners supply the capital. They are jointly responsible for qualifying for the mortgage. Each building also has its own bank account and joint venture agreement.

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THEIR PHILOSOPHY IS SIMPLE:

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• FIND GREAT DEALS

- BUILD A FANTASTIC TEAM

- PAY EVERYONE

- CREATE PARTNERSHIPS FOR LIFE.

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EDNA’S BUSINESS MODEL

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Every house Edna buys fits the following business model:

•Primarily long term buy and hold;

•Almost every house has a basement suite so there are two sources of rental income;

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•Prefer to purchase houses where the basement is partially developed with the potential of becoming a basement suite. This means windows, bathroom and one or more bedrooms.

•Prefer to buy apartments where we can force appreciation through renovations, increasing rent and effective management.

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What value does Edna bring to the table?

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• Edna is the working partner with contacts, knowledge and experience in the real estate market. As a partner, Edna will be responsible for:

• The management of the property managers who:

• Arrange for advertising and market of the property for rental, lease or otherwise as agreed by the parties;

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•Arrange for any service to be performed in connection with the management, repair and maintenance of the property; and

•Provides a semi-annual summary to the Investor with respect to the income and expenses of the property as well as an annual account with respect to income, expenses and mortgage amortization.

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What does Edna need in a partner?

• A person wishing to partner with Edna will need to fit into one of the following categories:

• $100,000.00 minimum; and

• An accredited investor or a family or friend of the principal.

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How does the partner get paid?

•Partners can be paid one of two ways:

•A fixed preferred return in which the partner receives a flat interest rate and is paid before Edna takes any profit; or

•Equity split where Edna and her partner will share cash flow, mortgage pay down and equity appreciation.

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NOTE: With apartment building projects, we generally pay the principal back through cash flow until refinancing in 5-7 years when the balance is paid before the managing partners receive cash flow. This ensures money partners are paid back their principal and still maintain their ownership.

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MULTIPLE PROFIT CENTRES

Show the investor all of the

different ways your business makes

money! Investors love to make

money in more ways than one.

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MULTIPLE PROFIT CENTRES:

•Edna’s business model of buy-fix-hold real estate is simple with 6 ways to make money:

• Equity earned in the purchase through negotiating;

• Forced appreciation through renovations, staging, cleaning, landscaping, design, marketing and selling;

• Depreciation;

• Leverage;

• Cash flow; and

• Mortgage pay down

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BOARD OF ADVISORS

• Show your investors that you are investing in yourself but not by yourself. Show them the team of advisors that are assisting in the event something goes right or wrong.

• Add relevant people to this list and get their permission before proceeding.

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SIGNIFICANT PROFESSIONAL RELATIONSHIPS

• Your lawyer and your accountant: Show off the professionals on your team!

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LIVE DEALS

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• Show your investor a live offering.

• Give them a bird’s eye view of the numbers.

• They often do not want to see meticulously detailed numbers at this stage.

• In a future meeting you can provide ultra detailed numbers.

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CURRENT HOLDINGS

• Show off your success stories with a detailed overview of your current holdings.

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YOU MUST FOLLOW A SYSTEM THAT BUILDS YOUR:

• CONFIDENCE• CREDIBILITY• INTEGRITY.

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SHOW WORST CASE SCENARIO…

WHAT IF YOU BOUGHT A HOUSE THAT DIDN’T INCREASE IN VALUE OVER THE NEXT

20 YEARS?

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•Would you consider that a poor investment?

•Most would but let me show you something most aren’t aware of.

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LET’S SAY YOU PURCHASED A RENTAL HOUSE FOR $300K

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And IN 20 YEARS IT’S STILL $300K and on top of the property not increasing in value...

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Let’s say all your cash flow was eaten up with repairs, maintenance and vacancy, as well.

Not good right? And what are the chances of that happening? Could that possibly be a worst case scenario?

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IN FACT THE TENANTS YOU DID HAVE PAID DOWN YOUR MORTGAGE -

SO IN 20 YEARS YOU ARE MORTGAGE FREE.

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•Do you know that means that someone else paid down your loan of $240,000 as your down payment was 20% of $300,000 or $60,000 so the return on your investment is $240,000. That is like someone else putting $1,000 per month away for you.

•And that is on one house, what if you bought a few?

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INVESTMENT

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HILLCREST APARTMENT DEAL

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•36 unit apartment building purchased for 4 million dollars.

•Appraised at 340K OVER what we paid for it.

•Down payment $650K (Total mortgage $3,340,000.00

•Rent is $35,525/mo

•Cash flow is $9,666/mo

•With cash flow alone, we expect to pay back entire 650K principle to investors within 5 years

•All principal investment is returned to the investors BEFORE we see any profit.

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Principal Payback to Investors will be about $1,200/mth per $100,000 after the end of year one - with balance coming back at refinance between year 5 and 7. The Investors will still maintain their 40% ownership and cash flow will go to 40% or approximately $492 per month per $100,000 .

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WE FORECAST THE INVESTOR RETURNS AS FOLLOWS:

YEAR ONE:

• ROI + PPD (principal pay-down) 13.6%

• ROI + PPD + 5% property appreciation of purchase price

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YEAR TWO:

•Without a repayment of the shareholder loan, we forecast the investor returns in year two would be as follows:

•ROI + PPD 14.3%

•ROI + PPD + 5% 26.8%

•Any additional increase in property value derived from forced appreciation (renovation and rental increases) is not included in the above figures.

•Beginning in the second year of operation, we intend to start repaying the shareholder loan.

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THE REASONS TO INVEST

• Cash flow positive: Even at the existing rents (allowing for 2% vacancy) the property provides $116,583.00 cash flow annually after debt services of $187,479.00.

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•Located between downtown and Saskatchewan Polytechnic (formerly known as SIAST).

•Value will be increased through property renovations and sound management allowing for rental increases.

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DESCRIPTION OF THE PROPERTY

•The lot measures 200 feet frontage by 140 feet deep

•2.5 storey, poured concrete apartment building with brick and stone veneer

•24 suites have balconies and air conditioners.

•Bitumen roof was installed in 2007.

•New intercom system and new front glass door and sidelight installed in 2012.

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2

SUCCESSFUL EXITS

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ALBERT MANORSASKATOON, SASKATCHEWAN

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The Property Overview

• This 24 Unit Apartment Building consists of 23 Two Bedroom units and 1 One Bedroom apartment located at 1001 12th Street East in Saskatoon, Saskatchewan.

• We raised $600,000.00 to close on the property purchase of $2,750,000.

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•This money was a Shareholder Loan that provided 40% ownership for the Investors (1% ownership for $15,000.00)

•During the first year of operation we invested approximately $100,000 in apartment renovations and upgrades including new flooring, paint, appliances and some new cupboards. This allowed us to raise the rents to market.

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• Once the rent increases went through and were considered stabilized we refinanced at $3.3M through CMHC and repaid all the Shareholder’s loans and the Investors maintain their 40% ownership.

• This was completed within 18 months of purchase.

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LA RONGE APARTMENT BLOCK

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The Property Overview

• This 144 suite package consists of 4

apartment buildings located in La Ronge,

Saskatchewan at $6.5M.

• We raised $1.2M in Shareholder Capital to

close on the property.

The Reasons to Invest

•At time of purchase it was Cash Flow

Positive: At the existing rent, the property

provides $283,223 cash flow annually after

debt service.

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La Ronge has an acute rental shortage.

•Value was increased through property

renovations and sound management

allowing for rental increases.

•There is future potential to condo-convert

the 40 units that are Lake-Front, and

develop the surrounding land.

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We took possession in November 2012, purchased for $6.5M and through forced appreciation by increasing rents and updating the building we were able to refinance at $10.8M, repay all of our Investors, July of 2015 –2.5 years.

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•The Investors maintain their 40% ownership and will now receive 40% of the monthly cash-flow, mortgage pay-down, depreciation, appreciation.

•The Investors all reinvested their original capital to purchase two more buildings."

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3

QUESTIONS?

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NEXT WEEK

POSITIONING YOURSELF TO ATTRACT JV PARTNERS

How not to be the best kept secret in Real Estate Investing.

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CONNECT WITH EDNA

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www.facebook.com/edna.keep

https://twitter.com/ednakeep

http://ca.linkedin.com/in/ednakeep

3drealestate@sasktel.net

306-536-6266