Inner Circle

1. Inner Circle Get the Financing Targeted Lists Make the Offer Inner Circle Follow Up Direct Mail 3rdMandatory Pre-Call for Your Success Dial For Dollars

2. Inner Circle Expectations Day One (begins at 7:30 a.m.) • Pulling Lists • Direct Mail Campaigns That Work • The Logistics and Science Behind Marketing for Leads • Packaging the Prospects (How to pull title and valuation on deals) • Dialing for Dollars

3. Inner Circle Expectations Day Two (begins at 7:30 a.m.) • Making the Appointment • Deals to Look For • Over-Encumbered Short Sales • Pre-foreclosures • Equity Deals • In the Field Training • Drive By Auction Properties • Knock on Doors (Yes, we will be talking to real people)

4. Inner Circle Expectations Day Three (begins at 6:30 a.m.) • Bank Run (Getting the Cashier’s Checks for the Auction) • Inspect Purchases • Write More Offers • Driving For Dollars (what to look for in possible opportunities (unlisted gems you didn’t know existed!))

5. Our Expectations of You • Be Open to Change (even if it’s uncomfortable) • Be Action-Minded • Listen More Than You Talk • Be Ready and Willing to Change Your Opinion Based On the New Information You’ll Receive • Readily Admit When You’re Wrong • Ask Questions • Absorb, Absorb, Absorb

6. MOST OF ALL! KEEP IT UP WHEN YOU GET HOME!!!!

7. Rule of 56: Have You… • Mailed 25 Letters Each Week? • Made 25 Calls Each Week? • Gone to 2 REI Meetings or Seminars? • Written 4 Offers Each Week?

8. What Have We Done Since Our Call • Letters Have Been Mailed • Calls Have Been Made • Now We Need to Actually Meet the Sellers (gulp…)

9. Meeting the Client…

10. Know the Property Before You Call • The number of bedrooms and baths • The style and type of construction such as “brick ranch” • Whether it’s built on a basement, slab or crawl • When the kitchen and bath(s) were last updated • Types of flooring: carpet, hardwood or other type • The ages of all the major systems such as the roof, HVAC, etc. • The type of fuel used for the heating system • Be sure to find out if all the utilities are on in the house

11. Know The Motivation of the SellerAsk These Questions… • How long have you owned the house? • Why are you selling? Probate, absentee owner, facing foreclosure (What’s their motivation)? • What is your asking price? You want to find out what their “expectations” are. • How much did the house assess for? A lot of the time sellers have no idea. • Is the house listed? If so, who has it listed? When is the listing over? Ask if it’s OK to keep them on your mailing list just in case the house doesn’t sell. • Do you have other properties to sell? Never forget to ask this question.

12. One More Important Question to Ask the Seller… “What repairs and updates would you do if you were to buy this house?” (You will be amazed at the information you will get just by asking this one question.)

13. Get the Deal Under Contract A Contract Will: • Secure the property so no one else can steal it from under you • Give you time to look over the property • Give the lender peace of mind that the deal won’t fall through Put the House Under Contract: • Step 1: Prospect and Review Potential Properties • Step 2: Write Offers • Step 3: Get the Offer Accepted by the Seller • Step 4: Put Earnest Money into Escrow to Complete the Contract

14. Find Out Your Maximum Allowable Offer (MAO) • First, take the after repaired value (ARV), which you determine from your comps • Then you multiply the ARV by 70% (if you’re using your own money to buy), or 65% (if you’re using private money) • Then you subtract your repairs • Then you are left with MAO

15. An Example: If you find a home that’s worth $100,000 dollars fixed up, and you’re going to use a credit line, you take $100,000 and multiply it by .7 (70%), which equals $70,000 dollars. $100,000 – After Repair Value X .07 – (20% Profit and %10 for closing and holding costs) = $70,000 Let’s assume the house needs $20,000 in work. $70,000 minus $20,000, leaves you with a MAO of $50,000. The most you could ever pay for the house is $50,000.

16. Make the 3 Tier Offer

17. Secure the Financing WHAT DO YOU NEED TO GET A LOAN WITH COGO CAPITAL?

18. Cogo Capital Residential Loan Application • Cogo Capital Schedule of Real Estate Owned • Cogo Capital Authorization to Release Information • Cogo Capital Zero Tolerance/ Fraud Policy • Valid Photo ID of Key Principals of Borrowing Entity and all Guarantors • Business Entity Information for Borrowing Entity • Articles Of Incorporation/Certificate of Formation/Articles of Formation • Bylaws or Operating Agreement • Federal EIN Verification

19. Preliminary Title Report– Lender’s Title Insurance with Cogo Capital as the Lender • Previous Two Months of All Bank Statements /All Pages (Must Demonstrate 3 Mos. of Reserves) • 401K / IRA Statements • Insurance Company and Agent Contact Information (Company and Agent Name, Phone, Fax, Email) • Property Valuation: 3rd Party Appraisal (Cogo Capital Will Order This)

20. Current Lease Agreement(s) for Subject Property, if Applicable • Complete and Executed Purchase and Sale Agreement, if Applicable • Payoff Letter Stating Mortgage Balance Owed and/or Real Estate Tax Bills Substantiating any Back Taxes Owed • Terms of Seller Carry-back Financing, if Applicable • Contractor Bids, if Applicable

21. Property Requirements • Non-Owner Occupancy Only • PropertyTypes – SFR, Duplexes, Triplexes, 4-plexes, Condos, Townhouses, MFH’s • Clear Title Required • 1 year of Hazard Insurance Premium Paid at Closing (Including Flood Insurance When Applicable) • 3rd party Independent Appraisals by Approved National Company Ordered Internally – “As-Is” Values Accepted Only If Not Older Than 120 Days • Property Must be Habitable or Funds are Held in Escrow Between 100% to 150% of Licensed Contractor Bid for Repair and are Released on Draws

22. Purchase - Loan-to-Value Cannot Exceed the Lesser of 65% or 80% of the Purchase Price (LTV Lowered to 50% if Loan Amount is Less Than $25,000 ) • Refinance - Loan To Value Cannot Exceed 65% - LTV Lowered to 50% if More Than 10% of Loan Amount is Received by Borrower at Closing • Lease Agreements Required on All Subject Properties That are Rented • Licensed Contractor Bids Required on All Repair Work Needed • No Seasoning Requirements on Refinances, Unless Acquired by Gift or Quit Claim in The Last 12 Months - Then Max LTV is 50% • Cross-Collateralization - LTVs Remain the Same When All Properties are the Same Transaction Type; Multiple Transaction Types Require LTVs to be Calculated Separately for Each Property

23. Mark Your Calendar The Lee Arnold Inner Circle is on June 18th-20th(NEXT WEEK!) in Spokane/Coeur d’Alene Don’t Risk Missing the Inner Circle Next Week: Settle Your Account with Serge Today: 800-341-9918