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COMMERCIAL SHORT SALES AND FORECLOSURES COMPREHENSIVE FREE COURSE! By Karen Hanover, CCREA, CCIM Candida te, Licensed Commercial real Estate Ag en t & DC Fawcett The Nation’s Leading Short Sale Automator

No need to spend 3 days and thousands of dollars taking a bootcamp! If you want to learn the “sandwich” technique, taught by other gurus, it’s all right here for FREE! For more up‐to‐the‐minute info on Commercial Foreclosures & Short Sales go to... http://www.cfgoldrush.com/how-to-find-commercial-deals-sp/


There are 3 easy ways to profit with Commercial Short Sales: 1. Flip the property without owning it (“sandwich” technique) Earn: $10,000 per flip 2. Flip a “Value Play” property Hundreds of thousands or millions per flip 3. Hold long term for massive monthly cash flows Hundreds of thousands or millions over time

A short sale is a sale that occurs when the owner is willing to sell the property and the lender is willing to accept less than what is owed as payment in full for full conveyance of title (lender releases lien). Using technique number 1, the “sandwich” flip requires none of your own money or credit. It is truly a No Money Down strategy. You never actually take ownership of the property but instead gain control of the property using methods I discuss and then flip that property to the end buyer thereby “sandwiching” yourself in the middle of that transaction. In this COMPREHENSIVE e‐book on Commercial Foreclosures and Short Sales I’m going to give you the “sandwich” technique in its entirety on commercial short sales for FREE. No need to spend thousands of dollars on another guru’s bootcamp or 3 days of wasted time. It’s all here ready and waiting for you. But first, let me get something off my chest! So you may be asking yourself, “Why would Karen give it away for free? Why would she just teach me the “sandwich” technique the other gurus are charging thousands of dollars to learn?” I’ll tell you why! I’m infuriated that some of these other gurus are touting that the impending commercial foreclosure crisis is a big “secret,” and that they have been predicting it. In fact industry insiders including commercial brokers and economists have For more up‐to‐the‐minute info on Commercial Foreclosures & Short Sales go to... http://www.cfgoldrush.com/how-to-find-commercial-deals-sp/


known that it’s been coming for years. I have been predicting it and teaching it to my students for the last several years. Now, I don’t mind honest competition but for other gurus to act like they’ve come up with something new just fries me! Additionally, many of the techniques they teach sound good in the seminar hall but don’t work in the real world and will thereby frustrate you and set you back in your real estate investing career. And it gives people like me a bad name! Someone other than me named this particular technique the “sandwich technique.” I often wonder if the reason they called it the “sandwich” technique is because they’re full of bologna! Anyway, this technique is so simple that there is no point to waste your money to attend a bootcamp on it. Here it is for FREE! Now as I calm down I realize those are very big statements and very big claims. So you may be asking, “What makes you different, Karen?” Well, I’ll tell you!

ABOUT KAREN HANOVER

Karen Hanover, CCREA, CCIM Candidate

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First, I am formally educated in commercial real estate through the National Association of Realtors’ CCIM Program and certified in commercial real estate as a Certified Commercial Real Estate Advisor... Second, I am President of the National Apartment Investor’s Association and Chairman of the Commercial Real Estate Advisory Board. I have owned property worth tens of millions (soon to be over $100 million). Additionally, I am a licensed commercial agent having worked for not one, but TWO of the nation’s largest commercial brokerages, Marcus & Millichap and Sperry Van Ness. I play every day in this arena with the big boys who can write $10 million dollar checks without hesitation and I’ve seen the techniques they’ve used and how they’ve become rich. I’ve used and continue to use those same techniques to make myself rich. Do you really think some “guru” (including me) has a secret which the big players…the professional multimillionaire and even billionaire investors don’t know about? Please say “no.” Here’s the real secret! Like anything else in life, if you want to become an expert at commercial real estate investing you will have to learn properly. You will have to put some effort into it. But the good news is that with commercial short sales and foreclosures you can make more money than you ever dreamed possible with just a little effort compared to a 9‐5 job! The time and effort required is very minimal once you know what you’re doing. It’s really not that hard but you just have to know how. And you have to know the right way or the big boys will eat you alive! Let me guess what’s going in your life… Maybe you have been struggling to be successful investing in real estate. Maybe you’ve tried and tried and taken course after course but still aren’t where you want to be. And now you’re skeptical. Am I right? How do I know? Because when I was in my 20’s I sat through these same “guru” seminars and bought course after course, package after package and never achieved success or made a dime. This is why I am For more up‐to‐the‐minute info on Commercial Foreclosures & Short Sales go to... http://www.cfgoldrush.com/how-to-find-commercial-deals-sp/


different. I know where you are because I’ve been there and I know what you need to know because I’ve been there. So let’s get to it!

COMMON QUESTIONS AND MISCONCEPTIONS 1. “Commercial Real Estate Requires a Lot of Money.” That is a common misconception I hear often and it is simply untrue. In fact, commercial real estate is actually easier to finance than residential and because commercial underwriting standards (loan approval) are different from residential. In commercial the lenders are looking primarily to determine if the property produces enough income to make the loan payments. There are many ways to get in with NO MONEY DOWN which cannot be implemented in residential transactions including seller carry backs which are common in commercial financing and allowed by lenders.. 2. “Commercial Real Estate is Complicated.” I’m not going to lie to you. There will be some things you need to learn. But even residential real estate seemed complicated while you were learning, right? The point is that it’s not complicated at all once you know what you’re doing. It does require you to know how to add, subtract, multiply and divide. Now I realize you learned this a long time ago in 5th grade and it may be a bit fuzzy so I recommend buying a $3 calculator to do it all for you. If you find operating that $3 calculator too complicated there is a piece of software you can buy which calculates everything with a push of a button. If you’re still having trouble, I recommend you repeat the fifth grade. ;) 3. Should I Start with Residential and ‘Move up’ into Commercial? For more up‐to‐the‐minute info on Commercial Foreclosures & Short Sales go to... http://www.cfgoldrush.com/how-to-find-commercial-deals-sp/


The answer to this is a definitive NO! Residential and commercial real estate are purchased for different reasons and the skills required for each are different. It’s like asking me should you learn to drive a car before learning to ride a motorcycle. The point is one has nothing to do with the other nor is one more difficult than another. Commercial real estate is purchased for massive monthly cash flow so if this is your goal, then commercial real estate is where you want to be!

HERE’S WHAT I KNOW… The residential foreclosure crisis has toppled our economy and the nation spiraling downward into recession. And yet, according to the FDIC website, only 172 banks have failed since 2007. I say “only”… The reason I say “only” is that industry experts are predicting that over 700 banks could fail from the impending commercial crisis. Now I’m not quoting the New York Times like this other guru, so this is not media hype. I am quoting Real Capital Analytics which is the source that the New York Times and other media obtain their information. www.rcanalytics.com Real Capital Analytics estimates that 68% of all commercial mortgages will go into foreclosure between now and 2012. The irony is that many of the properties which will head toward foreclosure and may be eligible for a short sale are actually NOT distressed at all. Let me explain what’s going on. You see the commercial buying frenzy began roughly around 2002 roughly the same time period as the residential boom. Many commercial investors took short term debt (7‐10 years) believing they would sell the property before the loan became due or at least have the ability to refinance. Very few predicted the real estate Armageddon which has thrust itself onto our economy.

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So here we are 8 years later in 2010 (I began teaching this in 2009 to my students) and those loans have become due. The problem is that there is very little capital available from traditional financiers and many of the properties are worth less than the amounts lenders will allow the owner to borrow. Notice however that this has absolutely nothing to do with the operations of the property. Let me give you an example. I’ll put it in residential terms. Let’s say that you bought a house in 2002 for $500,000 and borrowed 90% loan to value (LTV) or $450,000, interest only and took a 7‐year term on the debt. Let’s say that shortly after you bought it you found a wonderful tenant who moved into the property and who is still living in the property, caring for the property and making timely rent payments each and every month which cover your payment. Everything is going along great and the operations of the house are running smoothly. Along comes 2009 and the property is not distressed. To the contrary, operations are great and you’ve even made all of your payments and have the ability to continue to do so. But then you get a letter from the lender explaining that your loan is due and that you’ll have to pay it off or face foreclosure. Now normally this would not be an issue. You would march on down to that lender or any other lender and get a new loan. But in today’s economy that just isn’t possible. But let’s just say that you get lucky and find a lender who is willing to lend on your house! Yippee! The lender sends out an appraiser who determines that your $500,000 house has dropped in value by 40% and is now only worth $300,000. Additionally, lenders will no longer allow you to borrow 90% LTV. Instead they will only give you 70%. Based on the new value of $300,000 and 70% LTV, the bank agrees to loan you $210,000. However, because you took an interest only loan, you hadn’t paid down any principal and still owe $450,000. Unless you come up with the difference between the new loan amount of $210,000 and the $450,000 to pay off the existing debt on the property, the lender will exercise its rights to foreclose on the property. For more up‐to‐the‐minute info on Commercial Foreclosures & Short Sales go to... http://www.cfgoldrush.com/how-to-find-commercial-deals-sp/


Now you’re probably asking, “Why wouldn’t the lenders just extend the loan for a few years?” Some will, and some can’t because of restrictions from the FDIC. I will get into that later on in this e‐book but suffice it to say that even if lenders wanted to extend the loan term, their hands may be tied and they may not be able to do so. They may be forced to commence foreclosure proceedings. But what I want you to notice is that the fact that the property may be headed into foreclosure, this has nothing to do with the operations of the property. My example was a residential house but now imagine the same scenario with a 30‐unit apartment building. All of the units could be occupied and the property could be generating tens of thousands in positive cash flow for the owner who is making timely payments. Yet the property is still headed to foreclosure. On the other hand, some properties are indeed distressed. Because of hard economic times, some buildings are seeing increased vacancies while other have tenants living in them who are not paying rent and who are being evicted. Before buying any property, you should always have a plan as to how you will improve distressed operations. Additionally, it is crucial to know which markets in which to invest and how to thoroughly analyze commercial property because

your success as a commercial short sale investor implementing the “sandwich” technique depends entirely on your ability to find another buyer. Therefore you had better choose properties which will be in high demand. For more up‐to‐the‐minute info on Commercial Foreclosures & Short Sales go to... http://www.cfgoldrush.com/how-to-find-commercial-deals-sp/


Some buildings may not have a single occupant! Because the residential boom was like a locomotive without brakes barreling down the tracks, residential inventories were insufficient to keep pace with demand from buyers. So many commercial investors began snapping up apartments with the dream of converting the units into individual condominiums and selling each unit for a handsome profit. When the residential market turned, many of these investors got stuck with vacant properties often in the middle of construction and uninhabitable by tenants. To execute a short sale you only need to show the lender that it is more in their best interests financially to take your short sale offer than it is for them to foreclose, manage and market the property by traditional means. Some gurus will tell you that you need to show “hardship” on behalf of the current owner. That may be true in residential but commercial is a whole different game!

FROM THE BANK’S PERSPECTIVE "Banks are required, by law, to keep a reserve based on potential bad debt losses," says Karen Gross, director of the New York Law School Economic Literacy Coalition. What this means to you the short sale buyer is this. As soon as a loan stops performing, the bank is required to increase its reserves and can’t use that money for lending which is how the bank profits. Foreclosure laws vary by state but it can take six months to a year or even longer before the bank can foreclose on the property, manage the property and pay expenses like property taxes until the property sells. Then when the property finally sells, the bank takes a huge loss. Until the asset is resold and off the bank’s books it can’t make loans using the money required for increased reserves. Here’s how it works. When someone deposits $100 in a bank, the bank can lend some of the money and must keep some of the money in reserves. Let’s say that the bank is required to keep 10% on reserve. $90 is then free to loan For more up‐to‐the‐minute info on Commercial Foreclosures & Short Sales go to... http://www.cfgoldrush.com/how-to-find-commercial-deals-sp/


out for a profit. The bank profits because it may pay the depositor 2% on the $100 deposited but charge 8% on the $90 loaned. This is how banks profit. Imagine for example that when a loan stops performing, the bank is required to increase its reserves to 15%. On a new$100 deposit the bank must now hold back $15. Additionally it must hold back another $5 of the new deposit to cover the former $100 deposit as the reserves on the first deposit must also now be $15 but it only held back $10. Therefore in this example on the second $100 deposit, the bank must hold back $20 and can only lend $80. You can now see that when many loans become non‐performing, banks must hold back more and more money and have less to lend. This is exactly what happened in the 2009‐banking crisis. However, banks can borrow money from the Federal Reserve to cover these “reserve requirements.” Exactly how that works is outside the scope of this e‐book but I provide this explanation to show you how foreclosures are seen from the lender’s perspective. It will serve as a foundation to demonstrate why lenders are motivated to accept short sale offers from you and under which circumstances and conditions.

FORECLOSURES EXPLAINED When a property owner misses a payment the loan is considered non‐ performing and regulators require banks to increase their reserves as explained above. Foreclosure laws vary from state to state but generally speaking, once a property owner misses 3 consecutive payments, the loan is considered in default and the lender may begin foreclosure proceedings. This process begins by the lender giving the property owner legal notification that the property is in default and filing that notice publicly with the County Recorder’s Office. This step by the lender formally begins the foreclosure process and gives the public notification that the property is in foreclosure. This is important because this will likely be your first notification that the property is in foreclosure and that it may qualify for a short sale!

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To find properties which may qualify for short sale, get regular listing of Notice of Default filings from any title company. They’re usually FREE. This stage is called the “pre‐foreclosure” stage or “notice of default” stage. It is important to note that during the pre‐foreclosure stage, the owner still owns the property and is full control. In other words the bank can’t sell you the property, only the current owner can. This is an important distinction to make as it will require the cooperation of the current owner to effectuate a short sale transaction. This is the stage of foreclosure in which to make your short sale offer. Because the scope of this e‐book is short sales, I will not address the other stages of foreclosure in depth but will at least mention them. Remember every state is different. The foreclosure laws for any state can be found at www.RealtyTrac.com. I will explain how California works since that is where I live. After 90 days have elapsed since the filing of the Notice of Default, if the property owner hasn’t cured the default by paying the defaulted amount as stated in the Notice, the lender may set the property for sale. This is accomplished by auction. The lender sets the opening bid which cannot be more than the amount of the lien in default along with costs associated with the foreclosure proceedings, interest, fees, etc. When I say that the lender “sets” the opening bid, what I mean is that the lender actually makes the first bid. Should someone make a bid higher than the lender, the lender is free to bid again and again thereby bidding up the price. The highest bidder becomes the new owner of the property subject to any superior liens. Inferior or “junior” liens are wiped out. There is more to know about this but the discussion is outside the scope of this e‐book. If nobody bids after the lender’s initial bid, then the lender is the highest bidder and becomes the owner of the property again subject to superior liens. For more up‐to‐the‐minute info on Commercial Foreclosures & Short Sales go to... http://www.cfgoldrush.com/how-to-find-commercial-deals-sp/


This is also known as the property going “REO” (Real Estate Owned) or as the lender “taking back” the property. Once the property has gone REO, the lender must manage and market the property for sale. This is the process in non‐judicial states. Please refer to Realty Trac’s website for exact time frames for notice filings for each state and other rules. In some states, the lender must actually file lawsuit to take back property. If the owner hires a good attorney, the foreclosure process can be dragged out for years before the lender can take back the property and market it. Typically a Realtor is hired and the property is listed for sale in the MLS along with other properties at market rates.

The point is this. During the entire time that the loan is not performing which begins as of the initial missed payment, the bank is required to increase its reserves and therefore can’t use that extra money which is being held as reserves to make loans. Making loans is how banks profit. Earlier I explained that many owners are being faced with loans coming due at a time when the amount they owe on the property is more than the value of the property. This is often referred to as being “upside down.” If the lender takes back a property as described above it will incur significant costs and the process will take a long time causing the lender to have the bad asset on its books for months or even years which, as you’ve learned, upsets its reserves requirements and ability to profit. Additionally, once the lender takes back the property, it will likely achieve an ultimate re‐sale price which reflects market value. In most cases this price will be significantly lower than what the lender had been owed. The lender therefore takes a loss as well as incurring costs and waiting long periods to remove the bad debt from its For more up‐to‐the‐minute info on Commercial Foreclosures & Short Sales go to... http://www.cfgoldrush.com/how-to-find-commercial-deals-sp/


books thereby lowering its reserve requirements and increasing its ability to make loans. As a sidebar… Until our nation works through all of the bad inventory, allows it to be foreclosed upon and ultimately resold, the economic wheels cannot begin turning because the banks can’t make loans partially because of the increased reserve requirements. It is this author’s opinion that stimulus packages and other government tactics only serve to stall the inevitable and lengthen the time of recession.

THE ANATOMY OF A SHORT SALE A short sale is a sale that occurs when the owner is willing to sell the property and the lender is willing to accept less than what is owed as payment in full. In other words, short sale offers are made on properties that are in preforeclosure. I’ve never seen a bank accept a short sale offer on a loan that was performing. There must be missed payments for the bank to be motivated to consider your offer. Again, once a payment is missed the bank’s reserve requirements are increased so it is motivated to remove this bad asset from its books as quickly and as cost effectively as possible. That’s where you come in! You can save the bank time and money by making a short sale offer while making yourself a pile of money by “sandwiching” yourself between the current owner and the ultimate buyer. Think about it. If the bank takes back the property it will ultimately only get market value for it anyway, right? And it will incur costs to manage the property while being sold, Realtor commissions, costs of sale etc. And worse… this will take a significant amount of time.

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You can save the bank this headache and effectuate the same outcome for them by making a short sale offer reflective of what the bank would eventually get at sale anyway if foreclosed upon and sold at market prices. And because you’re saving them time and money you can likely make an offer well below that market value. Once you’ve obtained the bank’s commitment to sell you the property below market value, you have created value in the property so that you can re‐sell it below market value as well thereby creating demand from end buyers while building in a “spread” or profit for yourself. For example... Let’s say that the market value of a 30 unit apartment complex is $1,000,000. Let’s say that the bank agrees to sell you the property for $800,000. Let’s say that while the bank is considering your offer you market the property and find an end buyer who is willing to pay $900,000 for a property he/she knows is worth $1,000,000. By “sandwiching” yourself between the buyer and the seller, you can earn yourself a tidy profit. Here’s a problem that other gurus are not telling you! Yes you can sandwich yourself between the buyer and seller but your success ultimately depends on your ability to effectively market and sell the property before the short sale is approved by the bank. Also, just because a property is distressed or in foreclosure doesn’t mean it’s a good deal! Remember that! The key is achieving success using the “sandwich” technique is to: 1. Pick markets which have high demand so that you can easily find an end buyer. 2. Become EXTREMELY proficient in analyzing property to determine value so you know how to much to offer the lender. Both of those subjects are in depth topics taught in my bootcamp over several days and are outside the scope of this e‐book. However, here is a resource for market research. Integra Realty Resources specializes in market data and creates easy to understand reports on market data. This is an industry insider report and will prove invaluable to you in your investing! www.irr.com For more up‐to‐the‐minute info on Commercial Foreclosures & Short Sales go to... http://www.cfgoldrush.com/how-to-find-commercial-deals-sp/


HOW TO USE THE SANDWICH TECHNIQUE To sandwich yourself between the buyer and seller you have to do one of two things: 1. Control the property using Master Lease Option or Straight Option 2. Buy the property. Close on it and re‐sell it.

WHY MASTER LEASE OPTIONS (MLO) & STRAIGHT OPTIONS WON’T ALWAYS WORK Keep one thing in mind. Commercial investors are sophisticated. They didn’t become multimillionaires and/or billionaires because they have no idea what they are doing. Keep in mind too that these investors may try… and would be wise to try to go around you and make their own offer to the bank. I would. But how can they do that when you have the property tied up? It’s simple. You have an option to buy the property. The bank approves your short sale offer and you find the end buyer. Let’s say that end buyer is me! As part of my legal due diligence (there are 4 types of due diligence: legal, financial, market and physical) I would immediately pull title on the property to determine liens, the current owner and the amount owed etc. It’s just common practice in commercial. I would immediately see that although I am buying the property from you, that you are not the legal owner. Because it will look suspicious that you are trying to sell a property that you don’t own I would begin asking a lot of questions and definitely investigate further. I will likely contact the owner and maybe even the lender.

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When I find out that I am overpaying for the property because you have “sandwiched” yourself in the middle between me and the seller and that I could indeed pay less, I would make the bank my own short sale offer. Now remember the bank is not the owner and can’t sell me the property. And the owner can’t work with me because you still have a legal option on the property which ties the owner’s hands. But when the lender receives my offer of $850,000 which is less than the $900,000 I was going to pay you and more than the $800,000 the bank was willing to accept from you guess what’s going to happen? The bank is going to deny your short sale offer and your option will be null and void or you will have an option on a property for a deal which is going nowhere. So I might offer you $5,000 ‐ $10,000 to buy your option and then go make the bank a deal. Or, I might just walk as there will be a plethora of other properties to purchase without entangling myself in a messy web. Master Lease Options and Straight Options only work sometimes. It’s like having a toolbox with only 1 tool in it. You can’t always get the job done. The sandwich technique using MLO doesn’t require you to have money or credit as you’re not applying for credit or loans and you’re not actually buying the property. But as we’ve seen it may not always work AND ultimately lenders are likely going to get smart and start requiring the buyer to show their ability to close the deal. In other words what the other gurus aren’t telling you is that commercial banks are also very sophisticated and have a completely different set of underwriting standards than residential lenders. These lenders are going to require proof that you have both the funds and the credit to close the deal or they won’t even look at your short sale offer. You’re going to need both money and a resume to qualify just to SUBMIT the short sale offer. So what do you do? You can borrow someone’s proof of funds and/or credit by cutting them in on the deal. I partner with my students. The “sandwich” technique as taught by other gurus will only generate a small profit, not the hundreds of thousands or millions they purport. You may get For more up‐to‐the‐minute info on Commercial Foreclosures & Short Sales go to... http://www.cfgoldrush.com/how-to-find-commercial-deals-sp/


an option fee or finder’s fee which must be disclosed to both the seller and the bank. If the bank decides you are making too much on the transaction, they will arbitrarily adjust your fee. You can take it or leave it because ultimately the lender must approve the short sale and is under no obligation whatsoever to do so. If I, the end buyer, were flush with cash, I might even buy the note from the lender (they own that and can therefore sell it) for pennies on the dollar (likely less than your $800,000 offer) and step into the lender’s shoes and foreclose on the property myself! This removes the bad asset from the lender’s books. This is the problem with the sandwich technique and this is why a Master Lease Option or Straight Option won’t work! By the way, this is another way for you to make money. My partner and I teach a course on raising private money and that money can be used to buy bulk portfolios of nonperforming notes. So the best way to accomplish a short sale transaction is to actually close on the property, become the owner, and re‐sell the property for a profit. To do so you will need money, credit and a resume showing proficiency and knowledge because you have experience owning commercial property. Uh oh! Now what?

I PROVIDE YOU WITH MONEY, CREDIT AND A RESUME FOR YOUR DEALS Again, if you close on a deal and find me or any other sophisticated commercial investor as your buyer, I’m going to do legal due diligence and see that you just closed on a property and at what price. I will know that your sale has created a new “comp” and therefore driven prices down in the area and I will likely not want to pay very much above what you did, if at all. I might allow you to make $5,000 or even $10,000 and that is a very handsome profit for using the “sandwich” technique on a property and definitely an amount For more up‐to‐the‐minute info on Commercial Foreclosures & Short Sales go to... http://www.cfgoldrush.com/how-to-find-commercial-deals-sp/


you could live on if you could do one of these deals every single month for the rest of your life. But you’re not going to make the hundreds of thousands being purported by other gurus. It’s just not going to happen. But if you want to do it, I’ll even provide you with the money, credit and resume to do these and you can cut me in on your profits. You do the work and get on that perpetual hamster wheel. I’ll sit back and provide you with what you need and we’ll both go make a little money. OK? It’s definitely one way to go. To qualify to use my money, credit and resume you need to become one of my students so that I can show you which deals make sense. Keep in mind, the worst thing that could happen is that you wind up owning a property that you can’t get rid of. You’ve inherited someone else’s problem! That is why I train all of my partners to know what to look for, how to quickly know whether the deal has potential and how to value the property to know what to offer the lender and the end buyer. But what if I told you there were an easier way?

THERE’S AN EASIER WAY… A BETTER WAY! Here’s the good news! If you want to flip commercial real estate and make hundreds of thousands or even millions on a single deal which is often earned in commercial real estate then you have to learn the real way to flip commercial property. Only by actually owning the property and invoking one of 4 strategies, can you increase the value of commercial property so you can flip for those huge profits being touted by other gurus. Here’s how it works. Because the value of commercial property is tied to its cash flows (yes, you read that right… commercial property value is partially determined by its cash flows) the way to truly increase property value is to increase the cash flows. Once you do that, then you can flip the property for a For more up‐to‐the‐minute info on Commercial Foreclosures & Short Sales go to... http://www.cfgoldrush.com/how-to-find-commercial-deals-sp/


profit and even the most seasoned of investors will be willing to pay your price because you will have created REAL value.

Here’s the formula for determining commercial property value (price): NOI/Cap Rate = Price NOI is the acronym for Net Operating Income which simplified is actual rents collected minus expenses which include everything except the payments on the loan. Rents – Expenses = NOI Now I know we all learned to add, subtract, multiply and divide decades ago in the third grade so you may be a bit rusty… lol! In that case, dust off that $3 throwaway calculator you’ve got sitting on your desk and fire it up! So far, so good? I promise this is going to be simple‐simon.

GET OFF THE “DEAL TREADMILL!” Additionally, I mentioned that in commercial real estate you can generate massive monthly cash flows. This may appeal to you as well because ultimately it is your exit strategy from this whole financial real estate game. This is how you create wealth permanently and get off the deal flipping treadmill! You see the problem (if there is one) with flipping commercial property or any property is that once you do a deal, you’ve got to get out there, hit the pavement, jump back in the rat race and on the treadmill to find another deal. If you don’t you can’t make any more money. For more up‐to‐the‐minute info on Commercial Foreclosures & Short Sales go to... http://www.cfgoldrush.com/how-to-find-commercial-deals-sp/


But what if you could own these mega properties using none of your own money, none of your credit and even if you had no prior experience? What if you could own just one single property which generated enough monthly income so that if you never did another deal again you and your family could live the life of your dreams? That’s what I mean by having more than one tool in your toolbox. You see, at some point this game is going to end and the economy is going to recover. Hopefully you’ll have flipped many properties and can retire living the life of your dreams never worrying about money again. I’ve just taught you the “sandwich technique” taught by other gurus over a 3‐day weekend where they charge almost $4,000!!! If that’s your dream, no need to pay thousands of dollars and spend 3 days listening to a bunch of filler because the topic can truly be taught in an hour. But again, you will make small chunks of money using this method… maybe $10,000 per transaction and you will forever have a job… the job of finding the next deal and getting it closed on both ends. Nope… not for me! But what if I could also show you how to flip commercial property bought through short sale or in any stage of foreclosure and literally earn hundreds of thousands and even millions of dollars? No joke! No hype! No filler! Do you think your chances of retiring when the economy recovers would improve? Of course they would! Additionally what if I showed you how to hedge your bet and diversify your portfolio by also teaching you to own these properties for years and years so you could earn massive cash flows from the monthly income? Here’s an example. Let’s say you buy an 80 unit apartment complex where each tenant pays you a mere $500 per month in rent. That’s $40,000 per month! Now that doesn’t include expenses to operate the property and pay the mortgage. But using typical expense ratios and loan scenarios that same property should generate $12,000 ‐ $17,000 per MONTH each and every month for the rest of your life even if you don’t do another deal. Now that’s security! For more up‐to‐the‐minute info on Commercial Foreclosures & Short Sales go to... http://www.cfgoldrush.com/how-to-find-commercial-deals-sp/


Heck, even a mediocre, vanilla deal should generate at least $3,000 ‐ $5,000 per month. In other words you don’t have to hit it out of the park or do everything right to generate enough monthly income to secure you and your family in any economy. And you don’t have to choose! I just taught you the sandwich technique right now for free but I’ll also teach you other ways to flip commercial short sales using one of 4 techniques and I’ll teach you to purchase “cherry” properties in any stage of foreclosure so you can hold long term for massive monthly income. And I’ll teach you how to find these cherry deals before anyone else does! But you need ALL of the tools not just the sandwich technique or you won’t be wildly successful and you’ll continue to run on that same treadmill your real estate career has continued to run on for years. Do it right! Learn it right! How would you like to be able to buy in ANY stage of foreclosure including at auction and when they have gone REO. REO properties provide your very best opportunities to buy with NO MONEY DOWN! CHERRY PICK properties which are ripe for turnaround? How do you do that? 1. You must learn to choose emerging markets where demand is high 2. You must become an expert at commercial property valuation There! Done! I’ve just saved you a wasted 3‐day weekend and thousands of dollars. How can you thank me? Send gifts! I like red wine… GOOD red wine, weekend getaways, days at the spa, shopping sprees and more! I know these are expensive but in light of how much you just saved on a bootcamp and how much you now stand to make, I think it’s a good deal all around ;)

To find more ways to invest in Commercial Foreclosures and Short Sales, go to my site… http://www.cfgoldrush.com/how-to-find-commercial-deals-sp/

For more up‐to‐the‐minute info on Commercial Foreclosures & Short Sales go to... http://www.cfgoldrush.com/how-to-find-commercial-deals-sp/


Once there be sure to register for my updated web class at NO COST where I’ll show you how you can invest in commercial real estate by flipping for quick cash, or holding for massive monthly income! I’ll even show you how I will partner with you on deals and provide the commercial funding! Karen Hanover, CCREA, CCIM Candidate DC Fawcett, The Nation’s Leading Short Sale Automator

For more up‐to‐the‐minute info on Commercial Foreclosures & Short Sales go to... http://www.cfgoldrush.com/how-to-find-commercial-deals-sp/


Commercial Short Sales