90 DAYS TO $5K INTENSIVE MODULE ONE 1 WELCOME This program is - - PowerPoint PPT Presentation

90 DAYS TO $5K INTENSIVE

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MODULE ONE

WELCOME

This program is going to change your perception

• f what success means to you while teaching you

how to build $5,000/month in passive income through real estate investing.

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OVER THE NEXT 90 DAYS, WE WILL COVER THE FOLLOWING

MODULE 1 Drafting your Vision and Building Your Power Team 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 7 Getting Deals MODULE 8 Talking to a Potential Investor or Joint Venture Partner MODULE 9 Drafting your Story into a Presentation MODULE 10 Positioning yourself to Attract Joint Venture Partners MODULE 11 Getting Online MODULE 12 Systematizing the Process

Vision/PowerTeam

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MY VISION FOR 90 DAYS TO 5K

Throughout our 90 days together, you are going to learn the 5-step system for adding 4-40 doors to your real estate portfolio. You will learn how to achieve this over the next 12 months without investing your own money.

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Edna Keep http://multiplewaystowealth.com 7

Edna Keep http://multiplewaystowealth.com

Have you ever been to a bank looking for and really needing a loan? When you really need money, key word being need, what are your chances of actually getting it? Usually, not very good.

When we approach potential investors for money, we go in with confidence, credibility and integrity – Why? Because people like to deal with confident, credible people who have integrity.

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MY VISION FOR 90 DAYS TO 5K

This 90 day course is designed to increase your confidence, give you credibility and train you to present yourself with integrity. Confidence will be increased through transforming any fears you might have into focused relaxed knowledgeable thinking that puts you into action. Your credibility will come from your ability to present your deal with complete confidence because you know exactly what you are talking about.

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I define integrity as ‘Doing what you say you will do’. Integrity is a muscle that we can strengthen starting today. How? Well at the end of the presentation I am going to give you some homework and you are going to do it and send it back to me so I can help you fine tune it and get very clear

• n what your vision is.

After all you joined the program to grow and I am going to push you to do just that. Sound good? Okay, let’s get started!

Edna Keep http://multiplewaystowealth.com 11

MY VISION FOR 90 DAYS TO 5K

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MY VISION FOR 90 DAYS TO 5K

Why listen to me? We bought our first investment property in 2007 using the equity from our personal home. Our 5 year goal was to own 50 doors. We had been taught that if we found a good house that cash flowed at $100 per month that we should buy it. So with 50 doors at $100/door, we would have 5K per month in passive income. By September, 2008 (just 18 months after getting started), we reached our goal. Today, we own 388 doors worth $42 million dollars.

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Edna Keep http://multiplewaystowealth.com 14

All of our properties (minus the first two) were purchased using other people’s money - which as I explained on the webinar is the KEY to growing quickly. With less than 30 investors, we have raised about $5 million. Mortgage pay down alone is 298K/year (almost 25K/mo). The two things to note here: You don’t need 100 Investors – to get to $5,000 per month and you would need to raise about $1 million to buy, for example, 2- 18 units. Now on top of that you have mortgage pay down (assuming you own 60% of the buildings of another $51,600/year or $4,300/month). How many here save $4,300 per month now for retirement? We are living proof that vast success in a short amount of time can be done.

MY VISION FOR 90 DAYS TO 5K

Mortgage pay down alone is 298K/year (almost 25K/mo). The two things to note here: You don’t need 100 Investors – to get to $5,000 per month and you would need to raise about $1 million to buy, for example, 2- 18

• units. Now on top of that you have mortgage pay down

(assuming you own 60% of the buildings of another $51,600/year

• r $4,300/month).

How many here save $4,300 per month now for retirement? We are living proof that vast success in a short amount of time can be done.

Edna Keep http://multiplewaystowealth.com 15

MY VISION FOR 90 DAYS TO 5K

How this program came to be: People started asking me how we achieved our success. I realized I had skills that not many real estate investors had and that is the ability to raise capital for deals. Now, you, my friends, are going to learn what I know - I will share mistakes we’ve made and what we would do differently if we were starting out today. But first we need to cover some essentials – some business building strategies that are necessary to put you in the right frame of mind to ensure that you can take what you learned and implement it.

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MY VISION FOR 90 DAYS TO 5K

The very first thing we need to discover is your vision – the vision you have for your life and your lifestyle. This is absolutely necessary because as Cheshire the cat told Alice in Wonderland, “If you don’t know where you’re going, any road will get you there.” And I don’t want that for you. I want you to design your life and your path so that once you arrive, you want the life you have. You feel happy, wealthy and wise. Because as Jim Rohn said, “Work harder on yourself than your job. If you work hard on your job, you can make a living. If you work hard on yourself, you can make a fortune.”

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Edna Keep http://multiplewaystowealth.com 18

WHAT IS VISION?

Vision is an aspirational description of what you would like to achieve or accomplish in the future. It is intended to serve as a clear guide for choosing current and future courses of action.

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WHY IS VISION IMPORTANT

Vision assists you in creating an internal goal for yourself by visualizing the type of person you want to be. This internal visualization will assist you in creating success.

THE STRATEGIC ARCHITECHTURE OF ANY BUSINESS IS VISION

• The majority of successful businesses started out with an

authentic vision.

• Creating an authentic vision is like uncovering the soul of your

business.

• If you are just starting out in business, having a clear vision is

more important than having a plan.

• Your financial plan simply describes the finish line but your

vision is the vehicle you will use, how you will navigate the course and what you will do once you arrive.

• Your vision will tell you what is distinctive and compelling

about your business, specifically:

• The kind of team you want to build
• The culture that will be needed to achieve your unique premise
• Your ability to create a vision requires you to assess yourself.

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IT’S BETTER TO KNOW SOME OF THE QUESTIONS THAN ALL OF THE ANSWERS.

• JAMES THURBER

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VISION VS. REASON

• A reason is a list of WHYS for taking on a new challenge.
• A vision is how you see yourself succeeding at that
• challenge. It is internal and will drive you to do the things

you know you should be doing. The vision always dominates over the reason because the vision is what drives you.

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PAIN PUSHES YOU UNTIL YOUR VISION PULLS YOU.

• RAY HIGDON

THE PURPOSE OF YOUR VISION

• An effective vision provides an inspiring

portrait of what it will look like and feel like to achieve your goals.

• Having a vision forces you to know the

ambitions for your business.

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LIVE THE VISION AND THE VALUES YOU BELIEVE IN.

• UNKNOWN

THE VISIONARY

• Someone who not only has ideas but a vision of where

these ideas can lead.

• Demonstrates a Commitment to:
• Core values, radiating a sense of energy, strong will and personal

integrity.

• Communicating an inspirational picture into the future then

integrating innovative ideas while showing people how to achieve it.

• Building strong relationships with strong people
• Taking bold actions
• Knows how to pitch the investor by selling the vision with

such conviction that people want to be part of it.

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INVESTOR OR ENTREPRENEUR?

• Most investors make the mistake of not treating their real

estate investments like a business. This mindset shift is instrumental in achieving success.

• The definition of investor is: ‘An individual who commits

money to investment products with the expectation of financial gain’.

• Though an investor only commits money, a real estate

entrepreneur commits time, energy, efforts and personal

• resources. So from now on that is your new title ‘Real

Estate Entrepreneur’. Put that on your business cards and your website.

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INVESTOR OR ENTREPRENEUR

• It is important to recognize that each property is its own business. For

example:

• You have purchased a property, which is your asset
• A lender holds a mortgage on the property which you have an obligation to pay
• You are selling the use of the property space for a fee called rental income/revenue
• You have a client or customers, who are your tenants. I want you to start thinking of

your tenants as customers or clients because they are people you provide a service to and you want the good ones to stay. Treat them well.

• You have necessary expenses for the property, including such things as maintenance,

advertising, renovations, appliance repairs, property management, etc.

• You have very real and necessary business operating expenses such as your phones,

vehicle, office supplies, a bookkeeper, etc.

• The Canada Revenue Agency (CRA) wants to know the details of this asset/business.

You are required to submit annual year end information for tax purposes.

• Your intention of investing in the property is to create financial gain through positive

cash flow, and equity appreciation. This is called a profit.

• When you expand on this idea by adding more revenue properties, or even
• ther real estate investment strategies, it quickly becomes apparent, this is

definitely a Business!

EXAMPLE SOURCED FROM REIN CANADA 30

INVESTOR OR ENTREPRENEUR

• It is important that you develop a mindset for your business

success because your beliefs drive your decisions, your decisions drive your behaviours, your behaviours become your practices and your practices create your success. Understand that:

• Building a business takes time.
• As a business owner, you are accountable for:
• The decisions you make
• The actions you take
• Creating profitable results, especially when you are dealing with Investor

Money.

• You need to decide what type of real estate investing your business will

engage in.

• As you grow your business through purchasing investment property,

you will need to add to your business’s foundation to support you in your growth. You want your foundation to support where you are going, not where you are. Having a foundation to support your vision is important whether you have one door or 100 doors.

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INVESTOR OR ENTREPRENEUR

• A successful entrepreneur spends time investing in a strong team.
• This will help you get a better return on your time by leveraging the

strengths of others.

• You want to create strong relationships with people and businesses you

can trust and rely on to do the right things.

• By investing time getting to know them, you support their success and

share valuable information.

• Your success will definitely depend on the quality of the Power team

you bring together to support you. These people will include:

• Real Estate Agent
• Mortgage Broker / banker
• Lawyer
• Accountant and Bookkeeper
• Property Manager
• Business Coach
• Property Appraiser
• Property Inspection Company

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REALTOR

• A Realtor that invests in Real Estate themselves will understand what

you want in a neighborhood and why.

• They will understand rents, expenses and cash flow and many times

can have that figured out before you look at the property.

• A good Realtor will know what the vacancy rates are and the profile
• f the tenant drawn to that area.
• Do not hire a friend – we did and he scared us out of any purchase

that did not allow him to earn a commission and he kept taking us to properties that were not what we were looking for. He meant well but he just didn’t get it.

REALTOR

• A good Real Estate Investor Realtor will also understand

what a VTB or Vendor Take Back is and won’t be too scared to ask for one.

• Many Realtors who don’t know will tell you it can’t be

done, it is a typical response.

• Example our friend the Realtor wouldn’t present a VTB

request from us – he told us they wouldn’t be interested. It was a four plex we had under contract for $270,000.

REALTOR

• We had financing and everything in place if we could’ve

got the VTB. We walked but my husband Warren went by the property a few days later and asked the owners. They told us they would have but in the mean time they got another offer.

• They were Real Estate Investors they get it and other Real

Estate Investors can be a very good source of capital.

MORTGAGE BROKER

A Real Estate Investor Mortgage Broker will understand what lenders he/she needs to go to 1st, 2nd and 3rd if you are to build a portfolio – it is an entirely different ball game than getting a mortgage for a first time home buyer.

LAWYER

• You want a lawyer who understands creative financing as well as using RRSP’s as

2nd mortgages.

• You want a lawyer who will protect you from yourself as you optimistically build

your business but also from others.

• One of the biggest mistakes we made early on was not getting a full JV

agreement with early partners of ours.

• We started out being best of friends and now we cannot even talk to each other.

A good agreement would’ve stopped all that trouble.

• As it would’ve forced us to really craft the vision of what we expected from our

deals ahead of time as you always want to be on the same page before you start working together and some things should be negotiated up front and written down.

• Lawyers and Accountants are classic deal killers. Do you know why?
• They are trained to look for what is WRONG with a deal and believe me they will

point it out. You – the optimistic Entrepreneur that you are, only see what is right with the deal.

LAWYER

• And you do want that – to a certain extent, not to kibosh

the deal but to really make you think about upfront protection.

• Encourage your JV partners to get Independent legal

advice and explain to them what that is and what a lawyer will say to them so they are not blind-sided and scared out of the deal.

ACCOUNTANT/BOOKKEEPER

At first you may get away with using just a bookkeeper to keep everything straight, we use both as the bookkeeper is more economical for data entry and balancing the books and asking you all the questions like” where is the backup receipt for this Master Card statement.” As you grow you will want to bring in a CMA to help you with paying out dividends through your corporation and such.

PROPERTY MANAGER

• Another very important part of your team and again

highly advisable to be a Real Estate Investor/Entrepreneur.

• One of the top mistakes I see newbies make is doing their
• wn property management.
• This can really limit your growth as after about four doors

you are so busy looking after tenants and R&M that you have no time to buy property and attract Investors

PROPERTY MANAGER

• We also have our PM do an inspection of every unit

quarterly and we advise the tenants of this in the lease.

• Why? – first of all to keep the riff raff on notice that you

will be by frequently so no time to start a grow op, and also so can keep an eye out for maintenance issues. You’d be surprised how many tenants think it is entirely normal to have a wiggly toilet or the flush handle not working

• properly. Or don’t look up to see water coming in

because of an ice dam or roof damage.

QUESTIONS FOR POTENTIAL PROPERTY MANAGERS

• Are you licensed? If not how do they handle that?
• What are your fees for placing a tenant?
• What are your management fees for an apartment

building? A house? A duplex?

• How do you market your properties?
• Are there extra costs for marketing?
• What type of reports do you produce for your clients?

• What type of pm software do you use?
• How do you show your vacant properties?
• Do you have a maintenance department?
• Do you facilitate and oversee rehabs?

QUESTIONS FOR POTENTIAL PROPERTY MANAGERS

BUSINESS COACH

• The best money we have ever spent and continue to do so is on

a business coach.

• Why? We know the challenges of the business and can help

you bypass or reduce the effect of inevitable mistakes.

• We can also help you stay focused on the end result and look at

things with an objective unattached eye.

• One thing we have learned over the years is not to take advice

from people who have not done what we want to do

BUSINESS COACH

• I have a fitness coach – a personal trainer
• I have a wealth coach who enables me to continue to see

bigger and bigger all the time.

• I have a business coach that works with me on

presentations, sales, marketing, mindset and overcoming limiting beliefs.

APPRAISER

• Again we use a fellow Real Estate Entrepreneur and often

get appraisals for things like 2nd mortgages or so we know the current value for buy out or selling purposes.

• They can often tell you what you could upgrade to get

maximum dollar from your property.

INSPECTOR

A good Inspector will give you pictures and written explanations of each and every challenge or upcoming maintenance issue you might have. Again – use when buying but also when selling so you can fix all the little things that you may not pick up on from a cursory

• inspection. Leave the inspections report on the table for

when buyers are looking at it.

HOW TO BUILD YOUR POWER TEAM

• Ask good questions:
• Do you work with Investors?
• What area of Real Estate do you focus on? Residential,

Commercial etc

• How long have you been in the business?
• Do you have a problem submitting VTB requests? (Realtor)
• Do you own any Investment Properties?

MORE QUESTIONS

• Can you refer me to Contractors, Property Managers,

appraisers etc?

• For a Mortgage Broker – you may ask:
• What type of loan programs do you offer Investors?
• Do you have access to hard money? Private money?
• Can you do stated income loans?

FELLOW REAL ESTATE ENTREPRENEURS

• Where do you find them?
• I Buy Houses ads
• Networking Events
• Facebook Groups – get to know the people in this group – you

should’ve got an invite to join the group if you are on facebook. If you are not on facebook – you should be.

• Construction sites – if you see signs of a rehab going on –

might be a fix and flip entrepreneur.

• For rent ads
• For sale ads
• Looking for Investors ads
• Lawyers, Realtors, Mortgage Brokers, Property

Managers, Accountants, Appraisers and Inspectors.

FELLOW REAL ESTATE ENTREPRENEURS

• If You call “I Buy Houses.” ads.
• Is there a specific type of property you buy?
• Is there a specific area you buy in?
• How fast can you close?
• How much do you need to make on a deal?
• Do you have any additional fees?
• What is your closing process?

FELLOW REAL ESTATE ENTREPRENEURS

• Again, find out what they are looking for, maybe you can

wholesale a deal – which is if you have a property under contract that doesn’t fit your needs – say for example you found one with foundation challenges, you might have met a someone who loves those challenges.

• You may get an apartment on contract and not be able to

close on it – consider assigning the contract to a fellow entrepreneur.

FELLOW REAL ESTATE ENTREPRENEURS

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CREATING A VISION

• Your vision does not need to be perfect. At this point, all you

need to do is begin a conversation with yourself about the business you are trying to create.

• You want to begin with the end in mind. Knowing where you

want to go can help you define and build the foundation to support you today.

• In order to create a powerful vision, you need to:
• Zero in on the passion and purpose of your business by asking

yourself:

• What inspires me about my business?
• Why does my business exist?
• What does my business look and feel like?
• What about my business generates passion and ambition?
• What would it be like to be part of a team working toward this

common goal?

• The strongest answers from your questions form your vision.

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CREATING A VISION

• You will also want to ask yourself:
• What is your vision for your real estate investing business?
• What is your plan to achieve that vision?
• What is your purchasing strategy going to be (ie. Multi-family, fix

and flip, buy and hold)?

• How many properties do you intend to purchase?
• Which region/neighbourhood do you plan to purchase in?
• Where is the money to invest coming from?

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THE QUALITY OF THE PLAN IS A REFLECTION OF THE QUALITY OF QUESTIONS YOU ASK.

• UNKNOWN

QUESTIONS

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PLAN YOUR VISION

Click on handouts and you will be able to print out the workbook

 What does an ideal day look like for you? How would you

envision your tasks and overall productivity?

 How much do you earn?  What do you have (investments, possessions, etc.)?  Outside of investing, what other things are you involved in

(hobbies, other businesses)?

 How do you feel?  What matters most to you?  Start building your power team. Make a list of which

professions you currently have on your team. Whoever you do not have on your list, you need to find. Make some calls, ask some questions and keep notes.

ENJOY THE BLESSINGS OF A CHANGED LIFE.

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• RAY HIGDON

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IDENTIFYING THE GAP

Once you have completed your homework on Drafting Your Vision, you will be ready to look at Identifying the Gap. The Gap is the place between where we are and where we want to be. We will identify some of the strategies we can use to close your Gap once and for all. Some people constantly live in the Gap and we don’t want that for you. Living in the Gap is overwhelming and can cause frustration. Let’s celebrate your success so far and work toward Identifying your Gap!

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