“REcapS in a Box” (Your Plan for Success) What is the REcapS in a Box As a Special Note/Disclaimer here. The numbers you are about to see are real

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Slide 2 Slide 3 REcapS in a Box (Your Plan for Success) Slide 4 What is the REcapS in a Box As a Special Note/Disclaimer here. The numbers you are about to see are real life examples, but do not directly apply to all investors. These numbers are based on the criteria of a specific group of investors and does not necessarily apply to ALL investors. Each investor must use their own criteria to generate their own set of numbers for their Action Plan. Results will vary on the specific criteria and applied Action Plan. Slide 5 What is the REcapS in a Box put, Simply put, REcapS In a Box is a Complete Mentoring Program Based on the REcapS System. Slide 6 Whats We will be Covering: Making Offers SSRM (???) Property Analysis Financing Team Building Wealth Building Risk Controls Entrance Strategies Learning to Rehab Exit Strategies Lease Options Land Contracts LLC's, EIN's, EMD's Property Management NNN for SF Reverse Engineering Value of Non-Lien-able debt Cash Reserves as Partners Debt is Good Power of Duplication Flip to Hold Action Plans for Success Interactive Forms for every type of analysis we teach/use . and Much, much, more. REcapS Systems (Your Plan for Success) Slide 7 The SystemThe System - The Perfect SystemSelf Sustaining and Repeatable FormsForms Form templates used as well as samples filled out LinksLinks Links to websites that were used and discussed Copy of The Power of Real Estate Now; 2 nd EditionCopy of The Power of Real Estate Now; 2 nd Edition Full year A2REIC REcapS MemembershipFull year A2REIC REcapS Memembership . and Much, much, more.such as one of the items that makes this series of classes so much different than the rest REcapS Systems (Your Plan for Success) Whats Included in the Box: Slide 8 Cash Flow Leveraged Financing Amortization. Depreciation. Foresight. REcapS Systems (Your Plan for Success) Why Real Estate?: Broaden Horizons. Forecast Results. Tax-deferred Income. Appreciation. tax free You can get a tax free Loan Slide 9 TT ime T eam/ T ime I I nformation M M oney You Need TIM REcapS Systems (Your Plan for Success) What you Need?: Slide 10 The System is based on the principle of Flipping to Hold REcapS Systems (Your Plan for Success) Basic Principle?: Slide 11 The Perfect System must be both Self Sustaining andRepeatable REcapS Systems (Your Plan for Success) What is a Perfect System?: Slide 12 Education. Expand your Box Develop a Perfect System Repeat and Repeat that Perfect System REcapS Systems (Your Plan for Success) Why Education?: Slide 13 Initial Analysis is based on Predefined Criteria and the Projected Results You Make Your Money When You Buy...and You Realize it When you Exit REcapS Systems (Your Plan for Success) The Importance of Excellent Property Analysis?: Slide 14 Defining your Analysis Criteria for a good deal Sales Comps and Price per Square Foot Cost of REHAB Profit (If you don't pay yourself, why bother?) Cash flow Fees Logistics and Location EMD (Earnest Money Deposit) funds REcapS Systems (Your Plan for Success) Property Analysis: The Components Slide 15 REcapS Systems (Your Plan for Success) REHAB Analysis: The Forms Slide 16 REcapS Systems (Your Plan for Success) Property Analysis: The Forms Slide 17 Entity to offer with EMD, Proof of Funds, etc... REcapS Systems (Your Plan for Success) How to Submit Offers: What you Need Slide 18 What You Will Need in Place LLC to hold property Property & Liability Insurance Alarm System during rehab Multiple analyzed Exit Strategies Non-lien-able debt Cash Reserve but Not the way you may be thinking. REcapS Systems (Your Plan for Success) What to do with an Accepted Offer: Options Slide 19 The System is based on the principle of: Flip to Hold REcapS Systems (Your Plan for Success) The Basics?: Slide 20 The Perfect System must be both Self Sustaining and Repeatable REcapS Systems (Your Plan for Success) The Basics?: Slide 21 Using the System, you are Financially Independent when you have enough: 1 - Monthly Cash Flow to pay all of your monthly bills...and then some. 2 Have the ability to add lump sums at any timeand not have it come from your monthly income source. REcapS Systems (Your Plan for Success) The Action Plan: Slide 22 Self Sustaining Repeatable Module $ Sale. $ Cost $ Profit $ Cost = $ Principle REcapS Systems (The Magic of the SSRM) The SSRM: Slide 23 Self Sustaining Repeatable Module (SSRM) $ Cost = $ Principle Typical Deal = After Deal = $75,000 = Sell of Property but limited = $50,000 = Payback original Loan = $25,000 = Profit to use, but limited $ Sale. $ Cost $ Profit REcapS Systems (The Magic of the SSRM) Without The SSRM: Slide 24 Remember, $ Cost = $ Principle $ Principle $ The Principle is to pay for the Cost/Rehab. Typical Flip Deal = $75,000 $ Sale. $ Cost $ Profit Bank = $25,000 = $50,000 $ Profits $ Usually a substitute for the Income from your Old Job. REcapS Systems (The Magic of the SSRM) Without The SSRM: Typical Flip Slide 25 Remember, $ Cost = $ Principle $ Profits $ can be used...????? and, when the Profit runs out??? $ Principle $ Every new Property needs new financing. The Next Typical Flip Deal 1 Find the Next House 2 Re-apply for funding on Next house 3 Buy/Rehab/Flip 4 - repeat but, What are You repeating? Bank = $25,000 = $50,000 REcapS Systems (The Magic of the SSRM) Without The SSRM: Slide 26 Remember, $ Cost = $ Principle Typical Flip Deal What You are repeating 1 Re-applying for a new loan for EVERY HOUSE 2 Paying for every loan on EVERY NEW HOUSE 3 Profits designated as income, your ONLY income .so, all youve really done, is. Bank = $50,000 REcapS Systems (The Magic of the SSRM) Without The SSRM: $ Principle $ Every new Property needs new financing. $ Profits $ can be used...????? and, when the Profit runs out??? = $25,000 Slide 27 Substituted: Living from Paycheck to Paycheck To Living from Flip to Flip Living from Flip to Flip. REcapS Systems (The Magic of the SSRM) Slide 28 I believe the #1 Reason why most Real Estate Investors quit being Real Estate Investors. They dont know the difference between a REcapS Systems (Your Plan for Success) The Magic of the REcapS System: Slide 29 Real Estate Investor and a Speculator. What is the difference?... REcapS Systems (Your Plan for Success) The Magic of the REcapS System: Slide 30 Real Estate Investor has a Successful System and they stick to it. REcapS Systems (Your Plan for Success) The Magic of the REcapS System: Slide 31 What is a Perfect & Successful System? It is both Self Sustaining and Repeatable. REcapS Systems (Your Plan for Success) The Magic of the REcapS System: Slide 32 REcapS Systems (Your Plan for Success) The Magic of the REcapS System: Slide 33 Remember, $ Cost = $ Principle $ Principle $ The Principle goes back to the Bank to pay off the original loan. Typical Flip Deal = $75,000 $ Sale. $ Cost $ Profit Bank = $25,000 = $50,000 REcapS Systems (The Magic of the SSRM) Without The SSRM: $ Profits $ Usually a substitute for the Income from your Old Job. Pay off Original Loan Slide 34 Principles that make the REcapS System Repeat and Self-Sustainable. 1 The use of Non-Lien-able Debt (NLD). This allows us to use the same funds more than once, but only pay for it onceover time. 2 The use of a Cash Reservefunded by the original Debt. This is what allows us to Re-use the funds, and allow the System to be Self-Sustaining. This is what pays the monthly Debt Service on the NLD. 3- The Principle is returned to us, not the lender to buy another house to Flipover and over again. 4 Flip to Hold. Repeat the use of the Debt Funds to buy houses to Flipand, Use the Profits to buy Hold properties with all Cash Deals. 5 Use a Team. A smaller percentage of unlimited JVPs is greater than 100% profit from only one deal. Henry Ford taught us that with the Assembly Line. REVERSE ENGINEERING 6 Have an Action Plan based on REVERSE ENGINEERING REcapS Systems (Your Plan for Success) Slide 35 The SSRM Module (and how it works) SSRM: Flip 1 st House $ Sale. $ Cost $ Profit Flip 1 st House re-used $ Principle $ The Principle from 1 st house is re-used to buy another house to Flip $ Cost $ Profit $ Bank $ Principle $ No longer need new financing for every new house. Slide 36 The SSRM Module (and how it works) SSRM: Flip 2nd House $ Sale. $ Cost $ Profit Flip 2nd House $ Cost Bank $ Principle $ The Principle from 2nd house is re-used to buy another house to Flip again. $ Principle $ Still, No need new financing for every new house. $ Profit $ x 2 Slide 37 The SSRM Module (and how it works) Continue to Repeat Flip of Original Funds $ Sale. $ Cost $ Profit $ Cost $ Profit $...just keep coming with every new Flip $ Cost SSRM #2: Use Profits x 2 to buy 2 nd SSRM SSRM #1: Continue to Repeat Flip of Original Funds Slide 38 The SSRM Module (and how it works) SSRM $ Sale. $ Profit $ Principle Remember, $ Cost = $ Principle $ Profits can be used to.... to Flip...just like the Original House Buy a house to Flip...just like the Original House SSRM $ Profit $ Rent. $ Profit Flip this house just like Original House, but this time you are buying it with Cash Profits from the Original House Flip to HOLD $ Principle $ Remember, The Principle is returned to buy another house to Flip Slide 39 $$$ = Use of Principle or (Re-use of Original Loan) Non-Lien-able Debt allows you to Re-Invest the Principle & the Profit 1 2 3 4 5 6 7 The Power of Duplication $$$ = Use of Profit (s) from Flip(s) $$$ Slide 40 The Power of Duplicating 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 $$$ Slide 41 $$$ = Use of Principle or (Re-use of Original Loan) The Form The Power of Duplication $$$ = Use of Profit (s) from Flip(s) Slide 42 Redford Property (Hold) 1000-1200 sq ft 3bed/1 bath Rent $ 950/month Taxes/Insurance $ 250/month Cash Flow (income) $ 750/month REcapS Systems (Your Plan for Success) The Magic of Cash Flow: Slide 43 1 LLC/ASSIGNMENT of Bird Dog or Wholesaling 2 EQUITY BUY-IN and GAP Programs (JVPs) Cash Flow 3 Buy (w/all cash) SF homes for the Cash Flow REcapS 4 All 3 circles become 1 when the End touches the Beginning...and form the REcapS system. REcapS Systems (Your Plan for Success) The Magic of The 3 Spinning Wheels: Slide 44 1st Wheel: EMD Partner Buy/setup LLC Line up EMD money/investor Make Offer Offer accepted by seller Sell LLC/Offer package to Buyer/Investor Split Profits...and repeat steps on the next deal. REcapS Systems (Your Plan for Success) The 3 Spinning Wheels: #1 Slide 45 2nd Wheel: JV Partnership Property is analyzed Deal is presented to potential JVPs JVP accepts Deal Funding is acquired through JVFP Deal is executed REcapS Systems (Your Plan for Success) The 3 Spinning Wheels: #1 #2 Slide 46 3rd Wheel: Buy Hold Properties Hold Property is analyzed Property is bought/rehab with cash profits Property is refinanced Refi funds are used to repeat 3 rd Wheel Steps REcapS Systems (Your Plan for Success) The 3 Spinning Wheels: #1 #2 #3 #4 Slide 47 The Circles Connect: RecapS The Circles Connect: All 3 circles become 1 when the end touches the beginning...and form the RecapS system. Circle # 1 1 Circle # 1 repeats. Principle is returned and profits continue to finance properties from... Circle #2 2 - Circle #2, which repeats. Principle is returned & profits continue to finance properties from... Circle #3 Circle #1 3 - Circle #3, which can be refinanced (another form of repeating). Principle is used to buy deals from Circle #1 for cash. Profits also repeat in the form of Cash Flow, and... Circle #4Circle #1 Circle #3 4 Circle #4 (Bonus) is generated when Circle #1 touches Circle #3and the 3 Circles form, & become parts of One Repeating Circle and REcapS Systems (Your Plan for Success)... The System comes Full Circle. #1 #2 #3 #4 Slide 48 Yes, there IS a difference. What is it? REcapS Systems (Your Plan for Success) The Difference Between Good and Bad Debt: Slide 49 Bad Debt Costs You Money, Good Debt Makes You Money. REcapS Systems (Your Plan for Success) Understanding how Money Works: Slide 50 Lien-able vs. Non-Lien-able Debt (Comparison of Cost) Question: Question: If the numbers below represented your choices for fundingone being lien-able, and the other non-lien-able debt. Items Mortgage NLD. Approved Funds: $ 150.000 $ 150,000 Points/Fees $ 18,000 $ 28,000 Interest Rate 4% Comp. Int. 10% Simple int. Total Cost $ 257,803 $ 324,000 Mo. Payment $716.12/mo. $ 1,500/mo. Available Funds $ 132,000 $ 122,000 which would you choose? Slide 51 Albert Einstein What did Albert Einstein say was the greatest invention of the 20 th Century? Compound Interest REcapS Systems (Your Plan for Success) Understanding how Money Works: Slide 52 He added this Those that understand it live off of those that dont REcapS Systems (Your Plan for Success) Understanding how Money Works: Slide 53 REcapS Systems (Your Action Plan for Success) REcapS in a Box (Your Plan for Success) Slide 54 Making Offers SSRM (???) Property Analysis Financing Team Building Wealth Building Risk Controls Entrance Strategies Learning to Rehab Exit Strategies Lease Options Land Contracts LLC's, EIN's, EMD's Property Management NNN for SF Reverse Engineering Value of Non-Lien-able debt Cash Reserves as Partners Debt is Good Power of Duplication Flip to Hold Action Plans for Success Interactive Forms for every type of analysis we teach/use . and Much, much, more. REcapS Systems (Your Action Plan Steps & Elements) Slide 55 We dont just tell you what to do, and simply expect you to be able to do it REcapS Systems (Your Plan for Success) The Forms: Form #1: Student Profile Form #2: Financial Profile Form #3: ZipGrids TM Form #4: Buyer Profile Form #5: Seller Profile Form #6: Rehab analysis Form #7: Property Analysis Form #8: List Assist Form #9: Power Team Roster Form #10: Action Plan Matrix Slide 56 We dont just tell you what to do, and simply expect you to be able to do it REcapSREcapS Module #1: Team Building & the REcapS System introduction. The REcapS System is introduced. Module #2: Using Leveraged Financing. Good Debt vs. Bad Debt, and Non-Lien-able Debt. Module #3: Rehab & Property Analysis. Knowing your Market. Module #4: Entrance & Exit Strategies, and Making Offers. Getting in and getting out. Module #5: Using LLCs & Wholesaling in the 21 st Century. Assignments in the 21st Century. Module #6: Building your Team & laying out your Action Plan for your specific needs. This is why you are a Real Estate Investor. Module #7: Using your Team to Execute your Action Plan. Putting it all in actionin the field REcapS Module #8: Applications of REcapS & Where do you go from here? How are you doing so far? REcapS Systems (Your Plan for Success) The Modules: Slide 57 We dont just tell you what to do, and simply expect you to be able to do it Using a Systemand Why Basics of REcapS. Team Building Form: Form: Starting with the Student Profile Form REcapS Systems (Your Plan for Success) Module #1: Team Building & the REcapS System Risk Controls The 3 Circles of REcapS .and more. Slide 58 We dont just tell you what to do, and simply expect you to be able to do it Leveraging Debt Non-Lien-able Debtand Why. Good debt vs. Bad debt Using the Banks Money Form: Form: The Student Financial Profile Form REcapS Systems (Your Plan for Success) Module #2: Using Leveraged Financing Types of Funding The Cash Reserve Preliminary Action Plan .and more. Slide 59 We dont just tell you what to do, and simply expect you to be able to do it Knowing your Market Using ZipGrids Knowing your Market Analyzing Rehab Analyzing Property by the number$ Forms: Forms: Using the ZipGrid, & Rehab Analysis Forms REcapS Systems (Your Plan for Success) The Module #3: Rehab & Property Analysis Slide 60 We dont just tell you what to do, and simply expect you to be able to do it Entrance Strategieshow & when to use them Exit Strategieshow & when to use them Making offers that make sense, actually Dollar$ Form: Form: The Property Analysis Form REcapS Systems (Your Plan for Success) The Module #4: Entrance & Exit Strategies Slide 61 We dont just tell you what to do, and simply expect you to be able to do it How and When to use LLCs Holding & Buying with LLCs Selling the LLC... Instead of the property Form: Form: Revise the Student Financial Analysis Form REcapS Systems (Your Plan for Success) The Module #5: Using LLCs & Assignment Strategies Slide 62 We dont just tell you what to do, and simply expect you to be able to do it Building your Power Team Laying out your Goals based on your Financial Profile Understanding the REcapS Matrix and how it applies to you Forms: Forms: Power Team Form, & the Action Plan Matrix REcapS Systems (Your Plan for Success) The Module #6: Build Your Team & Action Plan Slide 63 We dont just tell you what to do, and simply expect you to be able to do it Analyze Properties for Market, Rehab and Profit Applying your Financial Profile needs to your analysis Registering LLCs, Making offers, Inspecting Properties Making Deals, Negotiating, Closing Properties... Doing it for Real!! Forms: Forms: Using ALL the forms. REcapS Systems (Your Plan for Success) The Module #7: Its Time for Action Slide 64 We dont just tell you what to do, and simply expect you to be able to do it Analyze how you are doing Are you in the right market? Are you making deals? Are your deals working based on your Financial Profile? What, if anything, do you need to adjust? Forms: Forms: Using ALL the forms. REcapS Systems (Your Plan for Success) The Module #8: Progress Review Slide 65 REcapS In the Field REcapS in a Box (Your Plan for Success) Slide 66 The AnalysisThe Analysis - You, with your in the Field Mentor will analyze Markets you think you may be interested in based on your specific Investor Profile & Action Plan Criteria The OffersThe Offers - You, with your in the Field Mentor will make offers from the Analyzed properties that fit the Profiles & Criteria The Offers -The Offers - You, with your in the Field Mentor will inspect those offers that were acceptedto see if they still work. The Closing -The Closing - You, with your in the Field Mentor will close on those accepted offers that still do meet the Profiles & Criteria after your inspections. . and Much, much, more.such as one of the items that makes this series of classes so much different than the rest REcapS In the Field (Doing it) Whats Involved: Slide 67 REcapS in a Box (Your Plan for Success) Slide 68 REcapS Systems (Your Plan for Success) JoinUs and may the Profits be with You. and may the Profits be with You. While seats are still available