partnering for profit david campbell and jeff lerman
DESCRIPTION
To watch a video of this presentation visit: http://www.hasslefreecashflowinvesting.com/video/partnering-for-profit/ Every real estate deals needs: -Cash and/or Credit and/or Equity -Time -Talent -Strategic relationships -Control of a great property As a real estate investor, YOU don’t need all of these resources to create income. You just need the skill to assemble and manage a team who can bring all of the above resources. As a former high school band director who became a multimillionaire through the vehicle of real estate, I am living proof that anyone can succeed if they cultivate lifelong relationships with the right partners. This is one of the most unique, unprecedented times in real estate investing. Ever! There is strong evidence that QE3 has started (QE3 = economic policies to stimulate inflation) and levels of “for sale” housing inventory are shrinking to record lows. This is the best buyer’s market in our lifetime. Don’t sit on the sidelines because you personally don’t have all the resources to do a deal. -Can’t find a property that makes economic sense? -Can’t afford the down payment to buy new properties? -Can’t get financing? -Can’t find the time to invest in real estate? Whatever your biggest real estate problem is, there is most likely one or more people who you can team up with to solve it. Whatever your unique challenge may be. The answers are out there. You just need to be made aware of the possibilities. In this sixty minute FREE webinar with professional investor David Campbell and veteran real estate attorney Jeff Lerman you will learn how to: Develop relationships with strategic partners Cultivate those relationships to acquire great investments Invest without worrying about getting financing Position yourself for incredible investment returns Protect yourself from your partner’s problems Structures your joint venture and document your deal Minimize partner disputes and stay out of court Avoid the securities laws completely And much, much more! MEET OUR WORLD CLASS FACULTY David Campbell is a professional investor, broker, syndicator and developer who enjoys counseling clients on creative real estate investment strategies. Jeff Lerman is “The Real Estate Investor’s Lawyer” and 2007 President of the Marin County Bar Association. Mr. Lerman has been featured nationally and locally on Fox News, CBS News and NBC News. Mr. Lerman will identify important legal issues that every partnership should discuss, agree upon and document before they seal the deal. Mr. Lerman’s experience not only with putting deals together but in handling partnership disputes through litigation will help you structure your deals to minimize future disputes. For more FREE educational content, visist www.HassleFreeCashflowInvesting.comTRANSCRIPT
www.HasslefreeCashflowInvesting.com
Partnering for Profit…and How to Avoid the Pitfalls
David Campbell Hassle-Free Cashflow Investing
Jeff [email protected]
David Campbell - FounderHassle-Free Cashflow Investing
Former high school band director Self-made multi-millionaire
Real Estate investor / developer / brokerFinancial educator / author / speaker
Houses, condo-conversion, multi-family, winery, resort, office, retail, medical office, production home building
Faculty Member: Investor Summit at Sea with Robert Kiyosaki
www.HasslefreeCashflowInvesting.com
Jeffrey H. Lerman, Esq. Jeffrey H. Lerman, Esq.
•Featured expert—TV, radio, newspapers•2007 President, Marin County Bar Ass’n.•“The Real Estate Investor’s LawyerTM”•Chair, CA Bar Real Estate Litigation Section •Chair, Marin County Bar Real Property Section•General Counsel, 2 RE syndication companies•30+ yrs experience•Real estate investor•Real estate broker
www. RealEstateInvestorLaw.com
Jeffrey H. Lerman, Esq. Disclaimers & Cautionary Notes
This educational seminar is not a substitute for getting your own legal advice. This webinar is offered with the understanding that the speakers are not offering legal or other professional advice. Any actions with regard to the information contained in this seminar should be undertaken only upon the advice and counsel of competent legal and tax professionals. Receiving this information does not create an attorney-client relationship between you and the speaker.
Jeffrey H. Lerman, Esq. Disclaimers & Cautionary Notes
This educational seminar is not a substitute for getting your own legal advice. This webinar is offered with the understanding that the speaker is not offering legal or other professional advice. Any actions with regard to the information contained in this seminar should be undertaken only upon the advice and counsel of competent legal and tax professionals. Receiving this information does not create an attorney-client relationship between you and the speaker.
Disclaimer
I’m not your lawyer.David’s not your
advisor.
You can’t sue us.
www.HasslefreeCashflowInvesting.com
ProfitMoney + Time + Hassle
ROI =
More profit with less invested
Today’s VIPs(very important points)
• Develop relationships with strategic partners• Cultivate those relationships to acquire great investments• Invest without worrying about getting financing• Position yourself for incredible investment returns• Protect yourself from your partner’s problems• Structure your joint venture and document your deal• Minimize partner disputes and stay out of court• Avoid the securities laws completely• SPECIAL INVITATION!
www.HasslefreeCashflowInvesting.com
High School Band Director ($37,000/year)
1995-2005
My First Real Estate Purchase 2 bed / 2 bath condo
Stanton, CA (Orange County)
Bought: $137kSold: $197k
2000-2001
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My ticket out of the rat race!
David’s Dandy Bright
2002
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Lake Elsinore, CA I-15 & Hwy 74
Year: 2002
1.5 acresfreewayfrontage
$200,000nothing
nothing
nothing
nothing
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what I was thinking what my wife was thinking
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Year: 2012
1.5 acresfreewayfrontage
$770,000 -$1,200,000
$570,000 profit / $40,000 investment = 1420% ROI over 10 years = 142% annualized
Costco
Lowes
Staples
Walmart
24 hrfitness
Walgreens
Starbucks
Gamestop
Home Depot
Lake Elsinore, CA
Bought: $300kSold: $460k
Bought: $270kSold: $420k
Bought: $275kSold: $450k
Bought: $285kSold: $485k
2002-2004
Patterson, CA
Bought: $270kSold: $450k
Bought: $290kSold: $460k
Bought: $275kSold: ???????
2004-2005
Jeff Lerman says to young David Campbell
“If you find a good deal bring it to me and I’ll fund it.”
30 unit condo conversion - Vallejo, CAEquity Partner + Hard Money Lender + Manager
Bought: $3,000,000Rehab: $600,000Sold: $4,800,000
2005-2007
BEFORE AFTER30 unit condo conversion - Vallejo, CA
30 unit condo conversion - Vallejo, CA
BEFORE AFTER
Development of rental homes in Dallas-Fort Worth
Development
2008-2012
Capital
Sales
entrepreneur
2011-2012
ConstructionLeasing
Management Equity
Debt
Distressed Strip Mall
entrepreneur
2011-2012
Construction Management Equity
Leasing / Anchor Tenant
Conversion from Bank to Medical Office
entrepreneur
David Campbell on the teaching faculty of the Investor Summit at Sea with Ken McElroy- best selling author of ABCs of Real Estate Investing
2011-2012
David Campbell on the teaching faculty of the Investor Summit at Sea with Robert Kiyosaki - best selling author of Rich Dad, Poor Dad
2012
poll
“Why This May Be the Ideal Time to Buy Real Estate”
“The real-estate sector, for the first time in years, is serving as a beacon of relative strength in an otherwise weak economy… Some of the
world's smartest investors, including Warren Buffett, are taking notice, placing big bets on a continued recovery in the housing market... [M]ost economists say the odds are good that real estate will be stronger over the next few years than it has been in the past few… That has caught the attention of many investors, including Mr. Buffett, who in February
said he would buy "a couple hundred thousand" homes if it were practical… "There's great opportunity in actually buying residential
homes directly for investors who have the capital," … "Prices are clearly turning the corner, and housing affordability is the highest in a
generation."
August 3, 2012
May 21, 2012 May 21, 2012
“Why This May Be the Ideal Time to Buy Real Estate”
“If you were thinking about making a move on a piece of property, right now is possibly the best time….
… Although prices are still near 2003 levels, the signs of an impending resurgence are everywhere you look….
For Americans who either have cash to buy or a credit score good enough to obtain a mortgage, there’s still time to get a killer
deal on real estate, but that window may be closing. If your
finances can support it, now appears to be a great time to buy.”
May 21, 2012
May 21, 2012 May 21, 2012
What’s Holding YOU BackFrom Taking Advantage of What Could Be The Best Time In Our Lives
to Invest?
What’s holding you back?
poll
What’s holding you back?
Band Director
DeveloperSyndicator
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Jeffrey H. Lerman, Esq. Lerman Law Partners, LLP
Copyright 2004 © Lerman & Lerman – All rights reserved.
Profits
Copyright 2004 © Lerman & Lerman – All rights reserved.
Diversification
Copyright 2004 © Lerman & Lerman – All rights reserved.
Growth
Copyright 2004 © Lerman & Lerman – All rights reserved.
Time
Copyright 2004 © Lerman & Lerman – All rights reserved.
Fun
Copyright 2004 © Lerman & Lerman – All rights reserved.
Connection
Copyright 2004 © Lerman & Lerman – All rights reserved.
Accountability
Copyright 2004 © Lerman & Lerman – All rights reserved.
Profits
Copyright 2004 © Lerman & Lerman – All rights reserved.
Cheaper
Copyright 2004 © Lerman & Lerman – All rights reserved.
Easier
Copyright 2004 © Lerman & Lerman – All rights reserved.
Faster
Copyright 2004 © Lerman & Lerman – All rights reserved.
Safer
Copyright 2004 © Lerman & Lerman – All rights reserved.
CHeaper
Easier
Faster
Safer
Copyright 2009 © Lerman Law Partners, LLP – All rights reserved.
Copyright 2009 © Lerman Law Partners, LLP – All rights reserved.
www.HasslefreeCashflowInvesting.com
Working with PartnersDeal-Time-Money-Credit
Working with Financing Partners
Working with Financing Partners
Forming Partnerships to Buy
Forming Partnerships to Buy
Some Partnering Pitfalls
No written agreement Agreement written by non-lawyer Agreement written by inexperienced lawyer No oral agreement Communication breakdown
Real World Case Study• 2 partners• 3 real estate development JVs• 10 years• Multi-million dollar dispute• Primarily involved issues of how
additional capital infusions should be characterized : loans v. capital contributions
Copyright 2008 © Jemic Enterprises, LLC, A Delaware Series LLC, Investor Education Institute Series – All rights reserved.
Most Common JV Disputes
Breach of fiduciary duties (good faith, care, loyalty)
Whether partner has fulfilled promised commitments of time, money or effort
Expulsion Buy-out amounts
Copyright 2008 © Jemic Enterprises, LLC, A Delaware Series LLC, Investor Education Institute Series – All rights reserved.
Most Common JV Disputes
Profit/loss allocation and distributions Admitting new partners Re-allocations due to changed
circumstances Unauthorized acts
Copyright 2009 © Lerman Law Partners, LLP – All rights reserved.
#2: What is the best form of ownership for you and your
partner?• Partnership Form
–General Partnership –Limited Partnership –Limited Liability Company
• TIC –Advantage: allows partners to
make different choices re 1031 on exit
Copyright 2008 © Jemic Enterprises, LLC, A Delaware Series LLC, Investor Education Institute Series – All rights reserved.
If you’re considering TIC……then each individual tenant in
common again confronts the entity question
Copyright 2008 © Jemic Enterprises, LLC, A Delaware Series LLC, Investor Education Institute Series – All rights reserved.
#11: What If More $$ Is Needed?Required or not?Caution: 3rd party creditorsIf required:
– Who decides?– Procedure?– Timing?– Consequences if there is a cash call
default?– Loan?
Copyright 2008 © Jemic Enterprises, LLC, A Delaware Series LLC, Investor Education Institute Series – All rights reserved.
#11: What If More $$ Is Needed (cont’d)?
– To the entity?– To the member?– Terms?– At what point
dilution? At what point
should the venture be terminated?
Consider representation and warranty re
15 Other Key QuestionsEvery Investor MUST
Discuss With Their Future Partner BEFORE Entering A
Joint Venture…Or Else
A team of experts presents a 4-1/2 hour content-rich webinar (no back-end pitches; this was the MAIN EVENT) where investors just like you learned cutting-edge strategies to:
Find just the right strategic partner to meet your needs Convert your properties from problems into profitsAvoid foreclosureAvoid bankruptcySave your creditFind great investmentsInvest without worrying about getting financingInvest with bad creditPosition yourself for incredible investment returnsHow to use your self-directed IRA funds to invest with a partner
Plus, they learned the most common mistakes and how to avoid them.
Plus, essential techniques every investor MUST know when dealing with partners, including:
How to protect yourself from your partner's problems (including potential future bankruptcy!)
Alternative structures for your joint venture
How to minimize partner disputes and stay out of court
How to document your deal
How to protect yourself from the "deadbeat" partner
How to avoid the securities laws completely (this is NOT a syndication seminar)
And much, much more!
Joint Venture Agreement Form
(this form alone would cost you at least $1,000 if you paid me to
create it)
Testimonials
Tom AndersonCEO and Founder of Pensco Trust Company, the country's only single-
service special asset custodian for self- directed IRAs.
Stephen Moskowitz, Esq.Senior Partner, Law Offices of Stephen Moskowitz, LLP
Robert HelmsA national television and radio personality and real estate
syndication expert
Jeffrey H. Lerman, Esq."The Real Estate Investor's Lawyer“sm and 2007 President of
the Marin County Bar Association
Lerman Law Partners, LLP Jeffrey H. Lerman, Esq.
72
Agenda
YOU WILL NOT BE ABLE TO HEAR THIS THROUGH YOUR COMPUTER
SPEAKERS! YOU MUST CALL (641) 715-3222
AND DIAL ACCESS CODE 613-149-968
Copyright 2008 © Jemic Enterprises, LLC, A Delaware Series LLC, Investor Education Institute Series – All rights reserved.
AGENDA
Business Legal Tax Using Your IRA 1031 Exchanges Q & A
BONUS #1
Free 15-minute Legal Consult With Jeffrey H. Lerman, Esq. (Value $120)
1st 10 Only
www.HasslefreeCashflowInvesting.com
Strategy consultation with David Campbell
you’ll learn how to
* Develop relationships with investor partners* Best practices for ongoing investor relations* Find & evaluate deals* Divide benefits between you and your partners* “Get out of the rat race” forming partnerships
BONUS #2
ACTION BONUS30 minute follow up consultation
with professional investor David Campbellto brainstorm your plan into
ACTION
1st 10 Only
100% Satisfaction Guarantee
If you are not satisfied for any reason, simply notify us within 30
days after your receipt and we'll give you a 100% refund. This does not constitute a guarantee, warranty, or prediction regarding your results.
This is only a guarantee that you will be satisfied with the content of this
educational product.
SummaryWHAT YOU GET WHAT IT’S
WORTHYour 15-minute legal consult $120
Your Action Plan Brainstorming Session $150
Joint Venture Agreement Form $1,000
4.5 Hours With Experts $1,600
TOTAL: $2,870
www.hasslefreecashflowinvesting.com/video/partnering-for-profit
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Q&A: Partnering for Profit
David Campbell Hassle-Free Cashflow Investing
Jeff [email protected]
www.hasslefreecashflowinvesting.com/video/partnering-for-profit