Monday, October 23, 2017

Short Work Of Commercial Short Sales- The Finale’

May 14, 2010 by  
Filed under Trends

It Was Fast, And Very Easy To Do!

The Million Dollar March Was More Like A Walk!

Now For The Million Dollar Dash!

I’ve really enjoyed sharing the Commercial Short Sale System with you over the pass few weeks.
This training was a major departure for the scheduled training but I was really compelled to share with the Top Gun Members.
This program illustrates the importance of mastering the core training program in the Top Gun Workshop.

When all the pieces are in place, you now see the power of what you can achieve.
Each of you can build your own “Commercial Short Sale Machine” by simply putting the core systems in place.

It isn’t difficult to do but is does require some effort and time to set up.

The Challenges We Faced

The challenges were numerous. But there were a few principles that consistently worked. They were:

1. The “Counter Intuitive Thinking Concept” .

2. The importance of “building Solid And Strong Relationships” fast.

Although we were able to get the entire system up and running in 4 weeks, there were some challenges and hurdles that we had to overcome. These were:

A. Getting pass the gate keepers

B. Finding the right person

C. One Realtor refused to submit our property offers because it didn’t contain his 3% commission.

D. Bankers that denied they even had properties.

E. Realtor claiming to have REO properties when they didn’t have any at all.

Was It Worth It?

Let’s add it all up !

1.We have a new banking relationship with a new bank.

2. We have access to over 300 properties access to $20Million dollars in commercial properties.
 
3.We will flip 3 to our pre-qualified buyers and keep 1.

4. Total net profits will be in excess of $3.5 Million Dollars

All in all I would have say it was well worth it!

Here’s 1 of 4 deals I found at the Bank!

Property A:
176 units, 58% Occupies, Appraised Value : $5.5M  Mortgage Balance $8.5M
I desire to purchase the mortgage rather than the property.

Mortgage purchase price: $2.5M

I elected to contact the owners and to offer them new financing at 70% of the appraised value:$5.9M
The balance due me is  $8.5M Loan Balance
New First Mortgage:     $3.8M  70% Of
Pay Off My Loan :       -$1.3M
Net Profits :               $2.5M

Balance Due On My Note $8.5M – $3.8M =  $ 4.4M
I could forgive the balance but I elected to take the balance on a second mortgage at 8% on 30/60 term plus a 20% equity position plus a board seat….

I will discount the note buy 50% once the property is stabilized.

I took the equity so I can have some influence over getting the property stabilized
and to have access to see how the proceeds are being used.
Stock holders have access to the books.

I had no desire to foreclose on this property. It was easier to cut a deal with the current owner
and trigger a payoff of my note….

My last option would be to flip the property…

I have 3 such transactions from 1 bank visit.
No Big Deal to do, just good numbers!

Now I have to Train more Top gunners so I can do more JV’S


The Next Phase!

Although many of you have said that getting pass the noise in the market has been your biggest challenge…
You know, getting pass the gate keepers.

I must confess that this is where I began in this business over 20 years ago.
I was terrified of approaching any banker unless I was applying for a loan.
I understand the mental challenges you may face.
Remember, it took me 8 Months to get up the courage to go into the bank.
I simply wasn’t prepared for this task even though it was a basically a research visit.
Yes, this truly is a process…

Since this is a process, I’ve decided to use this as the foundation for build my Financing Academy.
For 9 years I’ve thought about developing a real Academy with a extensive training, testing, rating and certification.
I would like to eventually get my Academy fully accredited.

The founding members will have lifetime memberships and will be the core of the academy.
I’ve elected to have between 50 -100 founding members and to clone myself through this core group.

These members will be required to get 2 simple transaction completed with my assistance in order to get full certification.
1. Broker 1 deal of any size within 3 Months of Membership.
2. To Purchase 1 commercial property with my assistance within 6 months of joining the academy.

Once these task are completed, these Founding members will be qualified to do numerous joint venture projects with my companies.
Some will head up regional and local Financing Charters in their cities and states… etc.

The opportunities are awesome.

Since this will require a personal commitment from me, I’ve elected to open the doors of this opportunity first to our
current members before the public release.

The training Will Be Very Personal And Extensive !This will be my final contribution to the Self Development Phase of my Life.
This will be my legacy……

These members will be equipped to make major changes in their lives and the lives of other for many generations.

We will require interviews of all applicants, confidentially agreements will be required, non-compete agreements will be required.
The members will take test and be thoroughly equipped to get results like a Top Gun!
This won’t be something you can just buy into. The members will have to apply for admission .
All applicants must be “mentally fit” for the training and must be “committed to getting their certification”.

The certification will consist of passing a series of written and oral exams, oral presentations, lender interviews,
preparation of LOI and contracts, negotiating with Buyers, Sellers and Bankers.
Joint ventures will be available for qualified members.

I am no longer accepting any projects outside of my current core group. I have deals to give to away.
I am in a prime JV position. I have the properties and the financing. I don’t need any deals now!

I Had Some Help .. Some Very Good Help

I don’t want to give you the impression that I did all of this on my own because I didn’t
I had a lot of help and assistance in getting this done. So let me acknowledge the individuals that
were working behind the scenes all alone.

Doston Stanley… Malcolm Turner … Reabon Walker … Shavawn Walker …. Quentella Barton
Steve Battle

These were the people behind the scenes that made it all happen.
They all have their stories have demonstrated  their commitments to our task.
I will call them “True Top Gunners”. They built and provided the bridges I crossed.

I commend you you all for your contributions and support.

Let’s automate and duplicate the process a few more times….

Why The Academy Needed ?

We have over 400 members and have trained a few thousand people over the past 5 Years.
Many have started their own successful business and many are super successful investors and developers.
Now is the time to take my businesses and training to another level and this Academy will be my training
simulator.

I haven’t set a price on the tuition yet but that decision will be made in the next few days.

I will be inviting 8 Top Gun Members to join me in this new venture.

Now I get to move to the next Phase of commercial financing.

By the way, I am totally amazed what I achieve when I work my program rather than teach the program.
It works better every time I do it….

Is it getting easier, or am I getting better…?

Watch for my prelaunch email in the next few days.

Durante

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Comments

5 Responses to “Short Work Of Commercial Short Sales- The Finale’”
  1. Robert Kim says:

    Amazing system, Durante. Thank you for making it available.

  2. Terry May says:

    Durante,

    Thank you once again for pouring your heart and compassion out to help others.

    Please consider me for one the positions available.

    Have a Blessed day,

    Terry May
    http://www.JTOhio.com
    http://www.YourMoneyGuys.com
    513-226-9052

  3. Tim Hearn says:

    Durante, you told us at Novembers -Top Gun Conference, “this coming year(2010)I will introduce the big game changer that will seriously change some of your lives for ever.” Sincere thanks for keeping that promise!

  4. Bryan Glover says:

    Once again as with your previous systems and techniques, you’re on the cutting edge. This system and methodology is both timely and effective!

    While others are using and endorsing glorified home techniques, this new system will be coveted by veterans of commercial investing. Yes, I believe it’s that good.

    As I highly appreciate the time I’ve already gotten to spend learning from you, I know the Academy will just that much better.

    Thanks again,

    Bryan

  5. Eddie Lake says:

    Awesome case study. This is an amazing system. You laid it out completely, as expected from you. I look forward to getting involved and executing the steps.

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Durante
Durante

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