All Forum Posts by: Earl Allen Boek

I went back to edit this article and could not find a way to do it...Next time I will use a word processor to prepare the article BEFORE I post it. Until then I hope the content and character are worth the typos, short sentences and screwed up headings...The dog puking in my office while I was preparing this is a better excuse than him eating my homework.
EAB :oops: :roll: :lol:

Forgive me, but I have started a new topic because I could not find my original post in this Forum, though when I mentioned it, I was sent a link. Seems like my first post would be listed here somewhere. Anyway, figuring out this site is harder for me than doing commercial Short Sale.

Any of you that read my first chapter, of what I hope to be a completed E-Zine of value, should appreciate this next chapter as I go further into the mindset of the transaction and what I think made it work.

When I sent out links to the article, several folks asked that I continue on explaining the deal in further detail so here goes.....

$I MILLION REASONS YOU SHOULD BE INVESTING IN COMMERCIAL SHORT SALES _By Earl Allen Boek, 2010 All Rights Reserved

Chapter II

PRICE IS NOT EVERYTHING, TERMS ARE

Question? Would YOU offer and pay an additional $50,000 dollars, above the asking price of $550,000 for a set of empty medical offices?

Even though you are a licensed agent yourself, in good standing in your state, would you offer to pay the listing broker both the listing side of a commercial transaction as well as the buying side, even though you
represented the LLC buyer as the LLC general manager?

Most of you, but I'm guessing, would say, hell no, these office complexes were empty for 3 years before I offered to buy them. Why would I ever offer more for them than they are asking? And you might be right. After all the
owners, three retired doctors pushing 80 years old, who owned the lots and buildings outright fully expected, I'm sure a low-ball offer and you short sale experts out there, I assume there are a few of you here, must surely think that in order for a transaction to be a "short sale", "it's your goal to short someone on the sale, right?" But that is never my first thought on a transaction.

My personal feelings are, if you always conduct your business from that
angle your going to miss many money making opportunities, because the idea that a set of dog offices, empty for three years, in a little jerk-water town somewhere, most of you have never even heard of, could turn into a
$1 million dollar earner, even over the 12 months following the purchase, just does not make sense. I would have never thought it possible had I not accomplished it. But these are the times we find ourselves in.
Back to the medical offices in a second.

Here's an example of a much larger deal that just closed in my town, tell me what makes sense here. Brand new office complex, 3 stories, 45,000 feet or so, elevator, stucco, across from city hall, closes for just over $2.3 million, purchased by an LLC by five of the "sharpest businessmen" in town.

Good price in a town of 90,000, but it had a construction loan on it of over
$11 million making it seem like a steal. The project was foreclosed on,
the developer by a Oregon bank, went to auction at over $4 million with no bidders, and it just sold a couple of weeks ago to the investors of the LLC.

Even empty this should be a real winner, since the city has needs for the
building itself, and sits across from it. But the fact remains, will 5 investors, see $1 million each return on this deal as I did on the medical center above? That remains to be seen. But it's doubtful any of it will come from appreciation in the pending climate.

I propose we will see a lot more of these kinds of transactions that would never happen in normal times, happening every week over the next several years. So the moral of the story might be...Deals do not have to make sense to make dollars.

So I approach every transaction is a blank slate of possibilities. Who knows what's possible until you start your investigation into the property?

Back to my first question on over-offering and over-paying $50,000 dollars for the medical offices. If you have no money and no credit, as I did at the time, I good start on the transaction is to NOT beat up the owners with a low ball offer. Unless of course you have existing financing, or cash on hand. An extra 1/2 a million laying around is something I have never had, but hope and pray to soon. Until then, I'll continue offering my way, and taking deals away from some of you that don't have to think or operate as I do.

If my goal is to get into the building so I can start earning from lease rents, house my own real estate and loan offices, be able to make three progress payments, as I raise the market value, income and loans needed to take possession, and closing 3 months later with a check for $98,600 and an appraisal of $950,000. The extra $50,000 purchase price becomes mute.

As to paying the listing broker a double commission, from a payday of $27,500 to one of $60,000. by having him represent my LLC in the transaction as well as the owners, I feel like I gave him 60,000 reasons why he should help me package a deal so I do not choke on it. In fact
that is exactly what I told him, when I asked that he represented my LLC in the transaction. As far as "skin in the game" I had none, so I put his in
the deal. From a market value standpoint, it might be better to own a
$600K set of offices on two commercial lots in the middle of town, than
$250,000 dollar set of offices, starting out, as I expect it's value might be today. The last thing is the arms-length transaction factor in the transaction. The fact that I would have loved to be paid the purchase side of the brokers commission, $30K in this example, might have cost me the entire transaction , the hundred thousand at close and the dozen or so other cash flows I was able to create over the following 12 months.

Brandon: I don't feel your lender is out of line. You just have to make sure that the deal you do is worth the points, fees and related cost you pay. EAB

I ran into this company about a week-10 days ago. I am pretty impressed and wonder if any of you have come across them in your dealings.

They are offering a good cross section of mortgage, credit, financial solutions for homeowners and commercial owners. Credit Restoration, Debt Settlement. Loan Mod, Residential and Commercial (this is the first company I've heard of doing commercial Loan Mod) Short Sales, Lending and Team Building. This is not a commercial for them, but they have a good marketing and training section included as well as training videos on each section and forms including submissions so you get paid.

They say they handle it all, you just refer and get paid on close. There was no charge to become an affiliate.

I think if they check out here, I will be using them as a lead development tool to help me meet potential commercial real estate agents, loan agents, investors and find deals. Your comments, good or bad, suggestions or whatever, much appreciated. EAB.

Thank Donald Trump for me.

Since I've been on disability these past couple of years, I have been able to review my last deal, which I did as a result of something I read on Mr. Trumps website a couple of years ago. Basically, I cannot remember
the exact phrase he used there, but it had something to do with getting off my butt and just doing the deal.

While my mind kept telling me that in a small town of 9,000 or so, there were no deals to be found, my faith in Mr. Trump was greater. I actually did find a transaction. Formed a LLC, wrote a check for the deposit, I knew what not go into escrow for a week or so, until the offer was accepted. I purchased nearly 8,000 sq ft of old commercial medical offices for $550,000, sub-leased out small offices to others, increased the value by a whopping $400,000 had it all appraised for $950,000, took out a second for $250,000 and closed the transaction banking over $98,600 at close. Through out the course of the next total 12 months I created an additional 7 or 8 cash flows because of what I call association, not appreciation. This added income to the operation actually became greater than the income from the appreciation had. My first deal, my first year I earned over $1 million.

Now, after a couple of surgeries, I've been on disability again, but my doctor has given me a clean bill of health, saying I've still have another 20 years in me if I take care of myself. I'm right were I was before, no cash, no credit and I'm getting right back on the horse again starting today contacting a list of accredited investors so that I have money lined up for doing commercial short sales.

Please pass this along to Mr. Trump with my heartfelt thanks. I never would have known I could do it if
he had not convinced me it was possible. I'm attaching the first chapter of a book I'm writing on what happened with my first deal.

Sincerely,

Earl Allen Boek


$1 Million Reasons You Should Be In Commercial Short Sales
Real Estate Investing

By
Earl Allen Boek


All Rights Reserved 2010





My name is Earl Allen Boek. My friends call me Al Boek. As I write this I live in the far reaches of Northern California in a smaller city, much like thousands of other smaller cities across the country. I grew up here in the area salmon fishing and playing football in high school and working in the local food service industries. My family has been here for generations now and I’ve been here for the last 15 years or so, just about the longest period, since my childhood.

My background is not that different perhaps than many of you that will read this. I went into the military when I was 19, when I returned I met and married a childhood sweetheart. We had two boys who both now have children and families of their own. I went to a local junior college on the GI Bill and graduated with an
AA, taking mostly business related classes.

Since I live in an area known mostly for it’s timber and recreation, mountains, streams, rivers and lakes, the pace here and the income potential, compared to places like San Francisco, Los Angles, Honolulu, other places I’ve also lived, is slower and the real estate investment markets are not like anything compared to
these metro areas .

The commercial, distressed/short sale transaction I am about to share with you should not have happened in a place so small, really, but the fact that it did, is good news for you living in the more rural areas of the country. What it means is the information that I am about to share can be of value to you, agreed to maybe different degrees, but still a benefit, no matter where you live.

You should know, I had no credit and no money when I started this transaction. Anything you have in those two areas, better than I did at the time is certainly icing on your cake. Understand had I a choice in the matter I would rather have had some or a bunch of both credit and cash on hand to invest. But what I did have, what I found was a distressed commercial medical office complex.

Even though it had sit empty for three years before I did the transaction and I had driven by this big empty set of offices on two commercial lots across from the post office in my town nothing happened to it until I made up my mind to purchase it.

So the transaction had to happen first, in my mind before it could have ever happened at all. Looking back I just wish it had happened a year or two sooner. Then again, the three years of nothing happening to it, had done nothing to hurt my chances of success…as it turned out.

I will be including pictures and other documentation of the building lots and the actual offices that were included in the deal as well as back up documentation and proof of everything I write in these pages. Because, frankly, even though we have all heard stories like this one.


When you turn your TV on late at night and hear some pitchman saying how you can begin purchasing real estate with no money down, with no credit, with no nothing. Our minds, quickly take us back to our sanity, telling us that what our minds have created cannot happen in the real world. So after our minds convince us something can’t be done, it seldom is done, that is why I feel you need the proof and back up documentation. Not just a copy of a check, at close, which by the way was $98,600 and change. I’ll also include the written offer, pictures, the closing statements on the deal, the lease/rent registers, the appraisal, so that your mind
figures out what my mind did. Hey, this deal can be done!

You do not believe me MIND? just watch this.

So just realize what I have, the only thing between you and your first deal, or you in your next 100 deals, is the command of that little bit of real estate, right between your ears. You can achieve what you mind can conceive. Can you do it on your first deal? Maybe not, but why not?

My suggestion at this point, is to go get yourself 500 business cards with your name on them and the words Real Estate Investor, just for starters so your mind gets the message. Smile.

So, here’s the transaction scenario. Every transaction has one. A break down of the deal. Goes like this…We have one long building approx 3300 sq ft. with a couple of waiting rooms, ex doctor offices, remember, a nurses station, a coffee break room, several bathrooms, including a handicap one, a large phone and file room, and about 5 or 6 nice office spaces and about a dozen of what were once examination rooms, about 150 sq. ft. ea. Behind this building is another building that would make two nice private doctors offices, each with a waiting room, a nurses/bookkeeping station and another 6 each examination rooms about another 2,500 Sq ft all together in those two attached offices. Behind that building was a nice brick building used for storing records, free standing about the size of a large garage with a roll up door on one side and entry door on the other. So all this real estate is on one commercial parcel and behind that parcel is another bare parcel the same size separated by an alley. The entire transaction, owned free and clear by three older, retired doctors, was being offered for $550,000. All the buildings were at least 30 years old, maybe a little older.

The entire half of city block across from the town post office is listed by a local real estate broker. His listing commission is 5% ($27,500) and if he’s lucky enough to sell it too, it doubles to 10%.

So, in the heart of a little town, this one having 9,000 folks, mostly retired, just 15 minutes south of the town I live in, just off of Interstate 5, heading North to Oregon, or South to Sacramento. It’s possible to do a transaction like this one and create or turn it into your first $1 million dollar transaction.

Ok, there you have it….What do YOU want to offer for it? Maybe first we need to decide what you think you can do with the buildings, that is what can you do, that no one else passing them has not thought of for the past 36 months to turn this empty project into a money maker?

The city was called Anderson, so it was as easy as ABC for me. Anderson Business Center. Sub leasing small offices to small businesses became my fifth cash flow stream of income.

Sorry, I left out a few others didn’t I? Before I tell you about the other income streams, I think its a real good time for you to consider going online and ordering a LLC, Limited Liability Company. You should not spend over $400 for one. Best to get one from the secretary of state of you State, that’s exactly the same place the web company will be forced to buy it for you. In my state if I go direct the set up is around $200. More respect will be paid you if your offer is made from this kind of
investment vehicle, unless you rich and well-known in your city, even then, now you should FOR SURE use this type of vehicle to do real estate transactions and offers with for the asset protection this structure provides. Back to the deal.

The first stream of cash…I needed $1,000 to cover the $1,000 earnest money, I needed $35,000 more to cover the added deposit in thirty days so I could move in and I needed $100,000 in 90 days to close the escrow and take final control of the buildings. So the first cash flow on the building was the $36,000 I borrowed. This would have been a good time to get an extra $4,000 to work with also, and I may have done that, but cannot for the life of me remember doing it.

The second cash flow, got to have a reason for asking for cash, was to cover the $100,000, added deposit which I did. At that point I was given keys to the building and allowed to move in. It was in fair to good shape. So after installing phones and internet, I purchased a banner and started leasing out spaces. Third stream of cash flow.

Then I needed some operating capital, I looked around, and figured I do better hiring a Southern California appraiser than a local one, and asked for his verbal suggestion what the buildings might be worth. Like sales are used for this, same size, the same type of locations, adjusted for my smaller town, market values were compared and then I asked what he thought it all might be worth, leased out? I was stunned when he told me perhaps over $1 million. Actually Stunned is not the best word, since by then I had a good handle on the actual value of the transaction to me, from an investor stand-point. None-the-less, at that moment I stepped up my leasing efforts and ordered an appraisal.

Within 3 months, on the strength of the verbal appraisal coming I found an investor and borrowed another $250,000 dollars and closed the transaction, secured by a second deed of trust and a note drawn on the LLC and signed by me as the manager. After all title and escrow fees, bringing the taxes all current on two lots and paying all loan payments 6 months in advance, points, fees and cost. I closed the transaction and was issued a check to the buyer, my LLC of nearly $100,000. Dollars.

Within 6 months of the purchase the property appraised at $950,000. So my fifth cash stream was the appreciation of the building through my fixing up and leasing the offices. A whopping $400,000 dollars or over $66,000 a month since my purchase increase in value. (Appreciation my fifth cash flow from the project of nearly 1 dozen cash flows and related companies founded that 12 mo. period)

But it did not stop there. That is where it all really started. The major portion of the money gross and netted in this transaction was not from appreciation but from what I call association.

To be continued....I could write a book on it, not sure I will, but I could. Smile

I was told in a real nice manner, that this is the place to post this, so here goes.....

The largest transfer of wealth ever is about to take place in the
COMMERCIAL SHORT SALE Business. Here is just one small example of what just took place in my own little Northern California town of 90,000 folks called Redding.

This past week a group of investors got together in a LLC investment
vehicle and purchased a brand new 45,000 sq ft 3 story, office complex, right across the street from city hall who had made the same offer, just days before of $2.6 million. Investors!... that's .20 cents on the dollar isn't it? Should have mentioned it had a first on it of about $11.5 Million.

The property had recently gone to auction for opening bid of over $4 Mil. on the court house steps, there were no offers.

This commercial transaction is just a small sample of what is about to take place nationwide as commercial property mortgages start coming due and the market values no longer support the loans written on them 4 to 5 years ago and beyond.

The single family residence short sale, REO, foreclosure market is sure to grow in the months to follow, but so will the GURUS their students and the
competition. HOWEVER, the larger more profitable Commercial Short Sale business has only one GURU, don't you hate Gurus?, anyway,
and it is a wide open industry with plenty of room for us.

I'm looking for just a little start-up and a financial statement or two, maybe a few commercial properties we can put into a LLC vehicle and enough investment capital to set up a operation in Las Vegas.

If you are a seasoned investor, (Not looking for chumps here) who understands, LLC investment formations and investments and their value in transactions such as these mentioned here and the value of someone who actually has used them and understands them and you can play in the $1OOK arena, are certified and can aid in this start-up, or know someone who else who can, please contact me at the following email address.

[EMAIL REMOVED]

I can be reached at the email above. I am blessed with the knowledge of being able to, not only sell others the picks and shovels they need to mine this opportunity, but I also have the background to find and fund the transactions sure to follow that effort.Let me know what kind of business you might be willing to look at. I will be teaching all who want to know, the proper vehicles and strategies to win big in 2010 in Short Sale and Distressed Commercial Properties, all web-based. Thanks For Your Time. EAB

For the record...On my first commercial transaction I earned $98,600. at
closing. Through added value techniques, I was able to increase the properties value by $400K in six months and created nearly an additional dozen cash related incomes from the transaction. Nearly 1 million, give or take, in 12 months from a standing start. Best of all, I have the official documents and records to prove it. Please email me, in the subject line put "PROVE IT". Thanks Again.

My Quote taken in part from a old sales pro....

"Sometimes all you need is a couple of good years in the right thing, at the right time."

Thanks to those who have already welcomed me plus provided me with some exceptional tools and programs. Much appreciated.

Much appreciated EAB

Great Site! My name is Earl Allen Boek, I live far North in California, along I-5 main artery into Oregon in a place called Redding, CA. Six generations here.

I am a twenty year licensed real estate loan agent who has had some pretty
interesting and educational experience in commercial distressed and short sale real estate finance and investment vehicle structures and uses of them.

I am getting ready to take it all on the road and relocate in Las Vegas, NV because I believe it makes business sense. Most of my trainings and meetings will take place either in web-based, private virtual online offices
and up to 500 room seminars and trainings. Look forward to networking
with you all here and assisting you in anything relating to commercial properties or any others for that matter.

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Blessings,

Al Boek