Daniela D., CA
(JV Partner)
I’d like to ask Cherif how best to leverage my license as a commercial broker in CA. I have no problem giving up a commission to make an assignment fee essentially, but I’m worried about locking up other Broker’s deals with EMD and becoming known for canceling them if I can’t get a tenant. I’d love feedback on this, I know I’m not the first Broker to be a student!

Juan O., Mexico
(New JV Partner)
Hi Cherif, I hope you’re doing well. My name is Juan, I’m a JV partner. I’m currently facing a challenge with some vacant single-tenant buildings I’ve found that fit our criteria. I’ve been using the formula from the JV program, but unfortunately, the sellers aren’t accepting my offers. They’re asking for a lot of money, treating the property as if it’s already leased.

Despite offering the maximum within our formula, my offers have been turned down. Could you share some tips or strategies for negotiating with brokers and sellers who have high price expectations? I want to learn how to handle these situations better.

Thanks for your guidance.

Marko S., AL
(New JV Partner)
JV partner is unable to find where exactly you specifically mentioned flipping a listed lease property to purchasing. Any help or where in the training to find this exactly would be greatly appreciated. I see properties for lease everywhere in good locations but am lost on whether to ignore or make offers and how to accomplish that exactly.

Milo S., CA
1. Do you fund/finance deals for your students? How do you vet the deals? What is the process?

2. Who is a financial expert or investor you listen to or respect?
Todd S speaks and then asks a question about holding property

3. I have a business partner I am starting not to trust. Can you advise on how to test the business relationship and how to move forward? 
COMMUNICATION: 3 elements of understanding

Josh S., VA
PURPOSIVE GROWTH SECURED INCOME FUND LLC
Hey Cherif and Ashlee!! I hope all is well!! I wanted to ask how we have any contract examples for putting a property into the fund via a management agreement.

Jabari L., MI
(JV Partner)
I attempted to get two former Chick-fil-A sites under contract. Their contract included use and deed restrictions. Ultimately they didn’t accept my offers because they said I lacked restaurant operating experience. I then texted the listing agent and asked why was the seller so concerned with how the building was used after they sold it? The agent never responded. Could it be that they are selling a Ground Lease?

Karl P., CO
Here are my questions:
1. When recording an option or lien, how long is it good for before it needs to be renewed?
2. What should specifically be in a corporate guarantee so that nothing is overlooked?
3. Is a 38-year-old drive-through (first generation) too old to consider for a National Tenant? Street averages 25K vehicles per day.

Victor S., CA
Regarding the KMAGB program, if my Ohio LLC owns the property, should the interest payments on the promissory note to the WY LLC be paid by my Ohio LLC to the WY LLC, or can the interest payments come from anywhere (i.e. my checking account)?

Ayanna D., FL
I just underwrote a multifamily property in Dallas, TX with a physical vacancy of around 19%. with economic vacancy, the total vacancy goes up to 31.4%. we have to figure out what the problem is. I feel it’s management. It’s a good property in a good area. 248 units and they are asking for $38.1M. what would you do to acquire the property?

Virginia M., CA
Why do you suggest a Living Trust with our asset protection structure set up?
How do I calculate the amount to capitalize my account each year?

Philip M., FL
1. I saw a video you posted on YouTube about development projects you have in FL. How can I get information on these deals?
2. Also- when putting a package together with a Lender what are the most important elements to prepare? What is the current amount required?

The Lender will ask you for 5 things

Edgar A., FL
Deal 1

People
I am working with the CEO developer/promoter of a new Hotel and Residential Project in the Caribbean for the last 60 years he has played different roles of administrator, director of finance, consultant, general manager, president, developer, and founder of over 45 hotels, apartment projects, and travel agency mostly in Spain, Caribbean and Central America.

Involved in the project are an architect firm with international recognition winning over 35 design awards for the last nine consecutive years counts, an international golf course and villa designer, and international hotel chains. The construction company has offices in Florida and in the country where the property is located.

The project developer and funding source will create a new company splitting evenly the ownership. I suggested that a fund be created to focus on this opportunity.

Project
The Property where the project is to be developed is approximately 18,000,000 m2 (4500 acres) with a certified appraisal from 2009 at $1,196,000,000, approximately 5.5 miles of beachfront, capturing the interest of an international golf course and villa designer/developer, and three international hotel chains.

The project design includes;

2 golf courses

2 marinas

14 beachfront hotels creating 1800 rooms

Sports Port provides social nucleus, shopping, nightlife, cultural center, and events

Apartments, luxury homes, villas creating

Sports Complex

Parks

Formula 1 circuit

Master Plan, business plan, presentation, and videos are available.

The property is registered as a Tourist Project with the Secretary of State of Tourism and is pending submission of project revision and approval under the new owner.

Positioning
This property is unique as it is located in an exclusive area of the country, adjacent to the property is a development twice the acreage and half the beachfront developing, 5,000 residential units, 500 hotel rooms, 1 marina, and 3 golf courses with the first course costing approximately $40mm USD.

Hotel rooms in the area average $572/night ranging from $114/night apart/hotel to $1,200/night luxury homes. Nonoceanfront lots in next door/s development are selling at $1,500/m2, undeveloped lots inland sell for approximately $10/m2, and undeveloped property with limited beachfront in the city the following is selling for $98.68/m2.

The property is located 15 minutes away from the country’s busiest International Airport with Citibank, Banesco, and Scotiabank present.

Performance
The acquisition of the property is approximately USD 95 million pending final negotiations resulting in an approximate cost of $5.58/m2.

Total project cost with acquisition is estimated at USD 8.5b with a total sales of USD 15.2b. Previous talks with golf course and hotel developers are inclined to invest in the project, land lease, or build to suit.

After year 4, debt is to be serviced with sales of the project and the company will refinance to pay off investors. The exit strategy stipulated during the option period is to sell the project before option expiration.

Profit
The company to purchase property is a 50%/50% ownership between CEO/Developer and new fund if created with POF of $10mm for option/$95mm for the project.

Debt will be secured with property offering a return between 6-8% with an additional 3% at year 5 where either the project will be sold or refinanced.

Questions.
Understanding this is a Non-US flag property, I would like your advice on how would you structure this deal with the seller to obtain the following;

What minimum returnable deposit would be realistic to put the property under contract with an 8-12 month due diligence period and to arrange LOIs, obtain developer commitment, and arrange for potential investors?

How could an option to buy 5-10% of the purchase price be avoided/minimized to improve the property for the 24-month option period with seller participation?

Would your proof of funds be used to place the property under contract?

Deal 2
With a fund can you purchase a 64-room hotel with seller finance in Spain for $5.5 mm and provide an operation/lease at $6.5mm and a 5% cap for buyers willing to enter into a 10-year 5 plus 5 operating lease option to buy? The buyer has other hotels and may provide cross-collateral.

Would this be a deal to walk away or commence establishing as my contact has more opportunities in Spain?
One deal can change your life….
When experience meets capital, that is when everyone wins….
Think BIG start small- the process is critical

Delsa L., FL
what would be the difference between the living trust, irrevocable trust, and revocable trust in terms of avoiding probate?

Siri B., GA
(New CRE DealPRO)
1. I was listening to one of the previous videos and Cherif was talking about development.
Can you please explain more about when this course plans to be released, its pricing, how long is the class, and associated details?
2. Also, can we partner with Mr. Cherif on the projects after completing the development course? 3. Can he explain by example profit margins and the timeline involved in developing a home/community?
3. Cherif, from what you are seeing in this market currently, which asset class do you recommend to invest?

Ishon M., FL
(JV Partner)
1. How do you handle a tenant who says I forwarded your email to the franchisee/broker and they will reach out if interested. Do I still follow up? Or should I wait until they reach out (which may never happen)?
2. Would you adjust your formula to 20x the rent if it is a 15-20 year lease with a corporate guaranteed lease from a national tenant that has a history of consistently selling under a 5% cap?
3. How do you calculate the cap rate for a billboard?
4. Would your fund buy a deal with a medical marijuana tenant (corporate guaranteed)?

Shawn B., NY
How do you advance when you have doubts?

FINAL TOPIC IN CLOSING:
1. The quality of life is in the questions you ask
2. What are the most important skills in business? (The 3: judgment, skills, networking)
3. Talk about the importance of “purpose” in any business or relationship.