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Special Situation Report:

Prospecting for Profits:


How to Turn Dirt into Dollars

An Introduction to the Profession of


Commercial Real Estate Property Scouting

Jim Janel
Executive Director

http://www.creapprentice.com

National Association of Commercial


Real Estate Property Scouts
375 N. Stephanie St., Suite 1411
Henderson, NV 89014-8909
www.creapprentice.com
Prospecting for Profits: How to Turn Dirt Into Dollars
An Introduction to the Profession of Commercial Real Estate Property Scouting

Table of Contents: not only shoulders all the risk, it puts up all
the capital. The investors also do over 97%
Section #1: Introduction.............................. 2 of the work.
Section #2: A Legitimate Opportunity ..... 2 „ Fact #3: A person doesn’t need any sort of
Section #4: Property Scouting Defined... 3 real estate license or real estate experience
Section #5: A Property Scout’s to get started, although it may prove useful
Compensation ............................................... 5 in the future. Those people who decide to
Section #6: A Day in the Life of a get involved will be trained by the Investor
Property Scout............................................... 6 Group and Association in everything they
Section #7: The Investor Group’s need to know and do to be successful.
System, Once a Property is Submitted ... 7 „ Fact #4: With regards to the actual work
Section #8: Four Recent Projects and itself- to do well, this opportunity
Two Case Studies ......................................... 9
realistically requires only about twenty
Section #9: Property Scout Training ..... 10
hours a week of a person’s time. Sure, there
Section #10: The Cost to Be Trained ..... 11
are some people who work less than 5 hours
Section #11: Summary .............................. 12
a week; but to ensure success, we strongly
suggest people set aside about twenty hours
Section #1: Introduction per week.
This special situation white paper has been „ Fact #5: A person can work at home and be
written specifically for people interested in very successful in this profession. Working
exploring Commercial Real Estate Property from the comforts of home is easily doable,
Scouting as a profession. as long as they have access to a computer,
Before the Professional Property Scouting is printer, telephone, fax machine and access to
described in detail, there are a few topics to the Internet.
address about which most people are initially „ Fact #6: Property Scouts find properties for
curious. These are topics that usually make a all types of investors. NACREPS.org is
difference to most people seriously looking at home to the top investors in US. These
making extra money, working from home, investors have come together not only to
embarking on a new career, or building a new pool their money and expertise, but to utilize
business. Property Scouts’ skills. These investors have
become widely known in the industry as
Section #2: A Legitimate Opportunity highly trained professionals who locate
First, the opportunity being presented is real. It prime properties for acquisition. For the
is a legitimate opportunity and a respected purpose of this report, we will call this
profession where a person can make a lot of group of individual investors, the “Investor
money. Probably more money than most doctors, Group.”
lawyers and CEOs. More money than even the
majority of business owners make. Here are a few Section #3: What It Takes to be
basic facts... Successful as a Property Scout
„ Fact #1: This opportunity and profession The Investor Group has discovered that the
has nothing to do with MLM, selling, or people who do well at this generally have seven
network marketing. specific qualities and characteristics. All are
„ Fact #2: Even though this opportunity is in considered important for success in this
the commercial real estate industry, this profession…
profession requires no risk, no capital and no  One, the people who are successful are
hard labor (like construction, property ambitious. They want to make a lot of
maintenance or rehabbing) on the Property money. They have some sort of major, long
Scout’s part. Our associate Investor Group
© 2009 National Association of
Commercial Real Estate Property Scouts -2-
Prospecting for Profits: How to Turn Dirt Into Dollars
An Introduction to the Profession of Commercial Real Estate Property Scouting

term financial goal they’re trying to reach, This profession is definitely is not for
perhaps becoming a millionaire, or those who are desperate for money or need
achieving financial freedom and instant gratification. While the financial
independence. rewards are extraordinary for people who
For people who have those kinds of are involved, the natural lifecycle of a
goals, this is the perfect opportunity. By normal commercial real estate transaction
normal standards, it is definitely doable in a takes time. This generally isn’t a problem
relatively short period of time. for most people, if they are aware of the
 Two, people in this profession are organized normal timeline up front.
and detail-oriented. They’re not overly-  Six, being a perfectionist is not required. In
analytical, but they can easily follow the the beginning, EVERYBODY makes
step-by-step Property Scout system in which mistakes. SO, maintaining an “ever-
people are trained. learning” attitude is key to success.
 Three, people in this profession enjoy doing  Seven, a person must be willing to work at
research and gathering information... property scouting to be successful- at least a
Most people who do well in this couple of focused, concentrated hours a day.
profession actually find this part fun. Being If a person has the seven essential qualities
proficient at doing the research is important and characteristics described above, then the
because a person will be using a computer, Investor Group’s experience is that the person will
the Internet and the telephone to find out do extremely well in this profession.
important information relating to specific
pieces of property the Investor Group may Section #4: Property Scouting Defined
want to purchase. Since Professional Property Scouting is a new
 Four, Property Scouts are comfortable field, a definition is in order.
contacting people they don’t know. While In sports, they have athletic scouts that scour
the property scouting has absolutely nothing the high school fields to find the next new crop of
to do with sales, selling or cold calling, a up and comers. In Hollywood, they have talent
property scout will have to use the phone scouts whose job it is to find the next big movie
regularly, and ask real estate brokers, agents stars. In the Old Wild West, they used Indian
or property owners a series of questions scouts to scout out new territories.
relating to a specific piece of property. The working definition of a Professional
Usually, this isn’t a problem because Commercial Real Estate Property Scout is a person
the Investor Group and Association will who spots promising commercial property
train a person in everything a Property Scout opportunities for sale for our Investor Group to
needs to ask and exactly how to ask it. It’s buy.
very simple and straightforward once a Our association and related Investor Group are
person is trained in the Property Scout building a network of professional Commercial
system. Real Estate Property Scouts around the country.
 Five, a person has to be willing to invest the These Property Scouts are trained to go out and
time, effort and energy in the beginning, and find, and pre-screen promising real estate property
be prepared to initially wait as long as six for the Investor Group to acquire.
months to see the substantial financial pay- A person can look at Professional Property
off alluded to above. Scouting this way: Take a drive through your city,
In other words, this profession is town or community. Chances are very good, no
EXTREMELY lucrative, and a person can matter where you live, that you’ll notice all sorts of
earn a great income, but they have to have to commercial property. In other words, you will
be willing to be patient. find property that produces income for its owners.

© 2009 National Association of


Commercial Real Estate Property Scouts -3-
Prospecting for Profits: How to Turn Dirt Into Dollars
An Introduction to the Profession of Commercial Real Estate Property Scouting

For example, there are Office Complexes, will be a winner. The Investor group will be able
Retail Shopping Centers, Plazas and Strip Malls... to sell it at a significant profit after it is developed,
Multi-Family Properties such as Apartment re-zoned, converted or built out according to plan.
Complexes, Retirement & Assisted Living The Investor Group and Association train
Facilities, Hotels, Motels and Condominiums... people in these criteria, once a person signs up as a
There are Industrial, Warehouse and Professional Property Scout. The criteria focuses
Manufacturing Facilities, as well as Mobile Home on finding “problem” or even distressed
and Recreational Vehicle Parks. There is properties-meaning properties which have
Agricultural Land and Raw Land which can be problems with the owners or problems with the
developed into high-value, income producing properties themselves.
property. As paradoxical as it might sound, “problem”
These are the exact types of properties the properties have the most promise.
Investor Group wants to buy, and the Investor
Group needs people’s help around the country in Example of the Type of Properties the
finding them. Investor Group is Looking For
Now some people would initially think the For example, let’s say a Professional Property
Investor Group could just hire real estate agents or Scout finds a piece of raw land for sale that’s
brokers to locate these properties. But frankly, the located in or near a growing community, perhaps
actual job description of these agents or brokers one that has a Wal-Mart nearby. That’s commonly
includes much more than finding the properties. In called “property in the path of progress.”
other words, initially, the Investor Group doesn’t Let’s also say it’s valued at $3,000,000, zoned
need all of the services the agents and brokers agricultural, and the owners have decided to
provide. These agents and brokers are usually a divorce and need to sell the property fast. So fast,
part of the transaction at some point. that they are more than willing to sell it below
The Investor Group is seeking ordinary, market value at $1,500,000. Selling below market
everyday people all around the country (regardless value, by the way, is a very common occurrence.
of their background, experience, trade, profession Property owners know that raw land rarely sells at
or education) to help find promising properties so full retail value. That means the moment we buy
that the Investor Group can acquire them, develop it, we have guaranteed $1,500,000 profit (50%)
them and sell them for a significant profit- enough when we sell it- which is good, but it could be
to pay Property Scouts literally hundreds of much better.
thousands of dollars (per property) for their efforts. Surprisingly, these types of properties are
everywhere. It’s a matter of knowing the criteria
Definition of a “Promising” Property the Investor Group is looking for. A Property
More specifically, our Investor Group is not Scout can use the Internet or their local contacts
looking for just any commercial real estate that’s and resources to find them.
for sale. There is a very specific profile of the type However, here’s where the comprehensive
of property they want to buy. Professional Property Scout training comes in:
The Investor Group is in search of THE KEY that makes this piece of property a BIG
“promising” properties. What does the word winner for us is the zoning. Assuming the Investor
“promising” mean? Group can get it zoned from agricultural to
A promising property is a property which commercial, the value could easily exceed
meets a certain, specific set of criteria to qualify $6,000,000- literally within only a couple of
for purchase by the Investor Group. It’s a set of weeks. That’s means there’s at least a $4,500,000
rules or guidelines they have developed over the profit- one that the investors would be more than
last three years where the Investor Group knows, if willing to share with the Property Scout. And if
they purchase a property, they have NO DOUBT it the Investor Group builds the property out all the

© 2009 National Association of


Commercial Real Estate Property Scouts -4-
Prospecting for Profits: How to Turn Dirt Into Dollars
An Introduction to the Profession of Commercial Real Estate Property Scouting

way, it could be easily be worth $20,000,000, last three years experience, the profit per property
probably more. And the property Scout who is $6,000,000. That means the Property Scouts
initially found it stands to make hundreds of stand to make $180,000 for each property, on
thousands of dollars for submitting it to the average.
Investor Group.
These numbers sound rather unbelievable at 2. While the Investor Group encourages
first, but new Property Scouts get acclimated easily Property Scouts to submit as many properties as
because the numbers are absolutely true. they want, not every one they submit turns into a
As Property Scouts learn to appreciate, deal. It’s not uncommon for a Property Scout to
commercial real estate is arguably THE BEST submit well over a hundred properties before one
WAY to make a lot of money and build enduring goes all the way through being purchased by the
wealth. All one has to do is to take a look at where Investor Group. But when that one does, the
the majority of the wealth and income of the Property Scout has hit the jackpot.
Forbes 400 comes from to prove it. That’s why patience, being organized and
Nothing else comes even close to the profits having the ability to focus on the long term rather
being made in commercial real estate. That’s what than wanting instant gratification is key to a
makes the Property Scout’s extraordinary income Property Scout’s success. It can usually take up to
possible. six months for a brand new Property Scout to
submit their first winning deal that goes all the
Section #5: A Property Scout’s way through to completion-although once trained
Compensation and experienced, the timeline can be shortened
Because a Property Scout is considered a true considerably.
partner by the Investor Group, a Property Scout is Here’s an important point to consider- Once a
paid directly by the Investor Group. person is trained and understands what the Investor
When a Property Scout finds a piece of Group is looking for in a promising property, once
property which meets the Investor Group’s criteria they “learn the ropes”- they can count on
and it is purchased, the Property Scout will earn a uncovering promising properties on a regular
considerable 3% of the profits when it is sold. So consistent basis. It’s like when someone buys a
on the previous example of the $4,500,000 profit, a new car and they begin to see the same style car
Property Scout’s compensation would be everywhere. It’s like when a woman buys a new
$135,000. outfit and they see others wearing the same thing.
Now imagine the compensation, if the Investor Once a Property Scout understands the criteria
Group builds the property out fully and then sells and property profile the Investor Group is looking
it. In any case, all a Property Scout needs to do is for, the deals will almost jump off the computer
find one winning property per year, and it is screen for a Property Scout to follow-up on.
possible to make 3% of the profits. To be clear, the vast majority of properties a
However, that being stated, there are four Property Scout finds and submits will have some
things which should be understood about a obstacle which will prohibit the Investor Group
Property Scout’s compensation: from following through and purchasing the
property. That’s the reality. It is not the Property
1. While this is a rather common scenario, the Scout’s fault at all. It’s just the way the process
example described is by no means hard and fast. works. The successful Property Scouts realize this
Some properties have more profit. Some ahead of time and set their expectations
properties have less profit. But one can count on accordingly.
the fact that ALL properties purchased will have This is one profession where persistence,
AT LEAST a $1,000,000 profit built in. That’s patience, organization and follow-through pays-off
part of the criteria. On average, based upon the massively.

© 2009 National Association of


Commercial Real Estate Property Scouts -5-
Prospecting for Profits: How to Turn Dirt Into Dollars
An Introduction to the Profession of Commercial Real Estate Property Scouting

On a day by day basis, being a Property Scout


3. After three years of already working is pretty straightforward. First, how does a
closely with the handful of property scouts around Property Scout find properties the Investor Group
the country, the investor group has realized even wants to purchase?
the most productive and ambitious ones who work There are two general approaches:
20 or more hours a week have no more than three
or four winning properties per year. Using the Internet to Find Properties
While those numbers are small, the Property One way, which Property Scouts love, is using
Scouts’ profit pay-outs are huge- literally hundreds the power of the Internet to find properties. There
of thousands or millions of dollars per property. are hundreds of free and “paid” commercial real
While the government prohibits the Investor Group estate listing database websites available for
from stating Property Scout income and earnings, Property Scouts to access.
one can probably imagine that successful, active For instance, one is called
Property Scouts earn a very good living and enjoy http://www.loopnet.com. It’s free, but it has a
a comfortable lifestyle- even when they submit “paid subscription” option. It’s a huge website.
only one winning property a year. There is no idea way of knowing how many
One is all it takes for a Property Scout to be properties are in that one database alone, but there
massively successful. In short, it’s a “numbers are a lot. And it’s a very popular resource among
game.” Professional Property Scouts.
Professional Property Scouts know they must There are many others just like it. Using the
be willing to be patient, and they must follow the detailed training, Property Scouts know exactly
step-by-step system as we instruct. It’s like a where and what to search for and exactly how to
lottery, but with two major exceptions: Property find these properties.
Scouts control, through their own efforts, the odds The best part is this can be done from home, or
of them winning, AND, more importantly, they anywhere else for that matter. Using only the
control the size of the jackpot. Internet, Property Scouts can find properties all
over the United States.
4. What Property Scouts learn in the training (By the way, the Investor Group ONLY wants
is that, although it’s counter intuitive, the larger the to purchase property in the United States; however
property and the bigger the deal is, the fewer you can effectively be a Property Scout in another
challenges there are with the financing, or the country and call into the US to gather more
owners, or the “due diligence” or the other parts of information on the property. There are
the deal-making. inexpensive international phone services which
This sounds rather paradoxical, but the make this opportunity viable. The only thing that
Investor Group’s experience has proven this fact seems to get in the way occasionally is the
over and over again. differences in time zones when contacting the
Given the Investor Group’s unlimited access brokers and agents).
to investment funds, Property Scouts are highly
encouraged to focus on finding the BIG properties, How Property Scouts Find Properties
the big deals, the big opportunities, because Locally, Within Their Own Area
they’re easier and more profitable for everyone The other way to find properties is locally,
involved. within a Property Scout’s community or general
In short, a big deal is easier to get done than a area.
little one. For example, Atlanta is a hot area. It’s
growing. It’s commerce friendly. There’s cheap
Section #6: A Day in the Life of a Property land available that’s incredibly under-priced.
Scout There are some incredible bargains there. And

© 2009 National Association of


Commercial Real Estate Property Scouts -6-
Prospecting for Profits: How to Turn Dirt Into Dollars
An Introduction to the Profession of Commercial Real Estate Property Scouting

most of the information never makes its way onto And the best and easiest way a Property Scout
the Internet. can get information like this is to call the broker,
If a person lived in Atlanta, they’d be in a agent or owner. They are the people who have it.
prime position to capitalize on all the information Normally, this isn’t a problem. One of
pertaining to commercial real estate. There are broker’s jobs is to provide information so that
zoning meetings. There are city council meetings. investors can make a decision. They want to sell
Plus there are local “in the know” brokers, agents the property, and a Property Scout is simply
and contractors a Property Scout could meet with calling to find out the information the Investor
that have “insider information” which would aid Group needs to be able to make a decision.
their quest to find promising properties.
Frankly, this is the primary reason we don’t Step #3: Submit the Property to the
hire banks of people sitting at computers and do Investor Group
this ourselves. By being local, a Property Scout Now, assuming a Property Scout finds a
has firsthand access to inside and local information property that is promising and they’ve collected all
and news that the Investor Group would never the information the Investor Group requires, at this
know about or be able to get. That’s the big reason point, if the property has merit, the Property Scout
the Investor Group needs people in every part of can submit it to the Investor Group using the
the country scouting for property. Property Scout Submission and Status System.
The Investor Group will take ball from there
Step #2: How Information is Gathered on a and run with it.
Property Generally speaking, active Property Scouts
The second step, once a Property Scout finds a have anywhere from 50 to 100 promising
promising property, regardless of how they do it, is properties they are currently researching. Some
to call the real estate broker, agent or property have more, and some have less, but 100 is a good,
owner (if it is a “For Sale By Owner”) to get more average number. That’s why it pays to be
information on the property. This is called pre- organized.
screening. Obviously, Property Scouting is work. Once a
Now admittedly, this sometimes can be a bit Property Scout is trained, it is straightforward
of a challenge. Brokers and agents are busy work. It is “work from home” work. It’s part-time
people. So even though they want to sell the work compared with other professions- but it is
property, it is sometimes tough to reach them and still work. However, for most people who have
get the information we require to make a decision. the qualities described in the beginning of this
So again, this is where a little persistence will pay white paper, it is work that is very fulfilling and
off. financially rewarding.
There are about 25 information items the
Investor Group needs to know which will give the Section #7: The Investor Group’s System,
Investor Group enough information to make an Once a Property is Submitted
executive decision on whether to submit an After a Property Scout submits a piece of
“informal offer.” (More on informal offers in property, the Investor Group has an even more
Section 7) rigorous system and process for evaluating the
Here’s an example: When deciding on a properties. This is required because millions of
property, the Investor Group requires three dollars are on the line.
“comps.” “Comps” are the comparable properties First, the Investor Group’s Acquisitions
in the area around the property the Investor Group Department gives the property a good first “look
wants to purchase and their selling prices. They over” using their property acquisition system. If
want these because they confirm the worth of the they think the property has merit, they’ll change
property the Property Scout is researching. the status to “Under Research” on the property

© 2009 National Association of


Commercial Real Estate Property Scouts -7-
Prospecting for Profits: How to Turn Dirt Into Dollars
An Introduction to the Profession of Commercial Real Estate Property Scouting

submission website, meaning they will confirm (Remember, at this point, the Property Scout’s
everything a Property Scout has submitted with the job is already done. While the Investor Group is
broker, agent or owner. This can happen in as doing due diligence on this property, the Scout is
little as seven days after submission. most likely working on other promising properties.
This is the first big clue that the Property There’s no money to invest, time to spend, or risk
Scout is onto something. This is a good sign that the Property Scout has to take. The Investor
because when a Property Scout first gets started, Group does all the rest).
the hardest thing is to know a good deal from a bad Once the due diligence is completed and the
one. It’s a learning process, and it takes a bit of Investor Group knows as much as it can about the
time and diligence to develop the “promising property, that’s when the Group will start working
property mental radar antenna.” So again, a little out a formal offer/contract which makes sense for
patience and effort is required. everyone. When the Investor Group submits it to
If a Property Scout’s submissions aren’t up to the owner, there is usually a strong likelihood it
par, they can always depend on the Investor Group will be accepted. This, frankly, is because the
telling them what didn’t work so that they can Investor Group has done their homework.
improve their “promising property radar” and Homework is the key to the Investor Group’s
information gathering abilities. The Investor extraordinary success and profits (and it’s the key
Group wants Property Scouts to be successful. to a Property Scout’s). They try to understand and
They want to do whatever it takes to help them learn as much as they can about the geographic
improve their “batting average.” area, the property, how they are going to build it
Once the property is “Under Research,” out, their exit strategy, the financing required, the
internally, using their systems and resources, the owner’s needs and motivation and how the
Investor Group goes through the property transaction will need to be executed up front.
submission with a fine tooth comb. They want to Once the owner says “YES, we have a deal”
see if the deal makes sense. They will confirm the and they close, that’s when it is time for the
facts using their own internal research team and Property Scout to celebrate. Although they don’t
make some calls to the broker, owner or agent. have a check in hand quite yet, it is the next best
thing because success and profits are practically
Definition of a “Letter of Intent” guaranteed.
Assuming everything checks out, and the At this point, once the Investor Group owns
Investor Group likes what it sees, the Group will the property, the Investor Group will start doing
put together an informal offer to the owner to whatever is required in their plans so that they can
purchase the property. This is called a “Letter of sell the property for a significant profit as quickly
Intent.” as possible. Sometimes that can take a couple of
A Letter of Intent is a non-binding agreement months as with the case of the re-zoning example
which basically says to the owner that the Group is above, and sometimes that can take a couple of
interested in purchasing their property and would years if major construction and development is
like the opportunity to perform “due diligence” anticipated. But regardless of what their plans are
and enter negotiations if everything checks out. at this point, the Property Scout’s 3% is locked in-
Obviously, the owner doesn’t have to accept unless they want to “cash out” early. A Property
the informal offer, but assuming he/she does, that’s Scout can “cash out” early at this point; there are
when it starts to really get exciting for everyone at two ways.
the Investor Group. For the next few months, the
Investor Group will spend as much as $50,000 and Two Other Property Scout Compensation
three months of time to see if the property is worth Options Available
investing in.

© 2009 National Association of


Commercial Real Estate Property Scouts -8-
Prospecting for Profits: How to Turn Dirt Into Dollars
An Introduction to the Profession of Commercial Real Estate Property Scouting

If a Property Scout really needs the money,


there are two compensation options available for
them to consider:
When the Investor Group actually BUYS a
property which the Property Scout submitted, the
Scout has a “quick cash” option of being paid
$15,000 at the time of purchase. When the
Investor Group later SELLS the property, the
Property Scout receives another check for an
additional $15,000. In total, a Property Scout
makes $30,000 for submitting that property.
The other option is when the Investor Group
submits a Letter of Intent to the owner- the
Property Scout is paid $300 before the property is
bought or sold.
Then, if and when the Investor Group actually
BUYS a property which the Property Scout
submitted, the Property Scout has an option of
being paid $5,000 within ten days after the time of
purchase. When the Investor Group later SELLS
the property, the Property Scout receives another
check for an additional $5,000. In total, a Property
Scout makes $10,300 for submitting that property
under this option.
Admittedly, both secondary options are a
small fraction of what a Property Scout would
normally be paid with a 3% share of the profits,
but there are some emergency situations when
Property Scouts prefer to be paid more quickly.
Though $10,300 or $30,000 is a lot of money
for submitting just one property, given the time
and work involved, getting 3% of the profits from
the property when it is sold is far more profitable.

Section #8: Four Recent Projects and Two


Case Studies
Below are some real properties which the
investor group currently has under contract and is
aggressively building out. They are located all
around the US and are a variety of property types.
Each of the properties is worth a minimum of
$6 million in profits. Each was submitted by a
Professional Property Scout.

Remember, all the Investor Group is


asking is for Property Scouts to find properties

© 2009 National Association of


Commercial Real Estate Property Scouts -9-
Prospecting for Profits: How to Turn Dirt Into Dollars
An Introduction to the Profession of Commercial Real Estate Property Scouting

like these. From then on, the Investor Group when they sign up. Property Scouts are also kept
does all the “leg work” and all the legal work to informed of the Investor Group’s acquisition and
evaluate, negotiate, purchase and sell the progress every step of the way through the
property. The Investor Group, NOT the property submission system, on each and every
Property Scout, does the “heavy lifting,” takes property under submission.
all the risks and puts up all the money.
Section #9: Property Scout Training
Here are a couple of case studies to better To be trained as a Property Scout it is pretty
illustrate the opportunity and what the profit straightforward. A person won’t need any
potential could be: experience or expertise to get started making
• Case Study #1: The Investor Group money as a Professional Commercial Real Estate
recently closed on a project where they Property Scout. There are no expensive courses
should make a minimum of $2 million profit about investing in real estate to buy. A
if they simply get the property re-zoned professional real estate license is not required.
(costing no more than $50,000) and a profit In fact, a person doesn’t have to know a single
of over $30 million if they build on it). thing about real estate investing to become
The Property Scout has a choice successful. Anyone who has the qualities
between a cash payment or 3% of the deal. discussed earlier can get started doing this
That’s either $30,000 (to re-zone) or $1 immediately.
million to her (if they build it out). And In fact, the Fast Start Manual, Making
that’s just one property. She’s already got Money as a Successful Commercial Real
two others the investors are working on Estate Property Scout only has 58 pages, but it
which will be much larger. contains everything a person needs to immediately
begin their training in this highly paid profession.
• Case Study #2: Another property a To get started it will take a person a couple of
Property Scout brought the Investor Group hours to read the Fast Start Manual from cover to
is one that’s perfect for a commercial cover. In it, there are topics like:
project. The property is worth $8.5 million ƒ What the specific Investor Group’s
“as is,” and the Investor Group is under criteria are for buying commercial real
contract to buy it for $4 million. estate property (The criteria are spelled
If they simply have it re-zoned, it will out in detail, in simple language, so a
be worth an estimated $11 million, OR they person will know precisely which
could increase the value even more by properties will be accepted by the
developing the infrastructure. The Property Investor Group and potentially be
Scout has decided to receive a 3% interest in winners)
this project. ƒ Exactly how to find and analyze
When completed, he should receive a properties in their local area or
check for somewhere between $200,000 and nationwide using the Internet
$500,000 just for submitting this one
opportunity to the Investor Group. The ƒ What to do when a property Scout finds
same Property Scout has now submitted a promising property (Property Scouts
another property the Investor Group is receive step-by-step instructions on how
excited about getting under contract- and it’s to submit the property and get paid)
an even better project than the first. Then, a person just needs to jump in and get
started using the property scouting techniques they
One common question people have is- Given learn in the manual. People are amazed at how
the money at stake, how are the Property Scout’s simple and relatively easy the entire system is.
interests in a property they submit protected? After three years in development, it’s been proven
Property Scouts are totally protected in terms over and over again.
of their interest in the properties they submit. Most property scouts get started finding
They have a commitment by the Investor Group promising properties within the first 30 days.
backed by a binding legal agreement they receive When they find a property that meets the

© 2009 National Association of


Commercial Real Estate Property Scouts - 10 -
Prospecting for Profits: How to Turn Dirt Into Dollars
An Introduction to the Profession of Commercial Real Estate Property Scouting

guidelines, they simply complete a one-page form System website and have the ability to view
on the Investor Group’s property submission the current status of the properties already
website, which Property Scouts are given access to submitted
when they sign-up. • Download other valuable systems,
As a new Property Scout, it's vital they learn software and resources that allow Property
from others and begin to know as much as they can Scouts to hit the ground running
about their profession. There's a wealth of
experiential knowledge that's available that would Normally, the association membership
take someone literally years to gather and organize. initiation fee is $299.00 to begin, with recurring
That's why when people sign-up, they subscription dues of $99.00 a month. However,
are automatically initiated into the when new Professional Property Scouts sign-
membership of the National Association of up, they become members for just $39.95 a month
Commercial Real Estate Property Scouts- a (a 60% reduction), and the initiation fee is waived
professionally-run association dedicated to the completely.
continuing education of all Professional Property
Scouts. It's committed to people who are serious Section #10: The Cost to Be Trained
about learning more about their profession and The Investor Group has gone to great lengths
who desire to learn more about the Commercial to keep the cost of the training as affordable as
Real Estate industry in general. possible. They don’t want the price of the system
As an active, participating member, a and training to stand in the way of anyone being a
Professional Property Scout can: part of this respected profession, earning a great
living and having a wonderful "work from home"
• Get additional training and personal
lifestyle.
coaching on small group training conference
So to be trained as a Professional Property
calls, live webinars and live tele-seminars in
Scout and be part of the opportunity, the Investor
addition to written, audio, and video
Group is charging a modest $97 for people to be
materials
initially trained, and then after the first two weeks
• Access a monthly-updated list of hundreds
of training, the cost is $39.95 a month for
of free Internet property database websites
continuing education and to maintain membership
where they can search for promising
in National Association of Commercial Real Estate
properties for sale
Property Scouts. Everything is included:
• Learn simple strategies, tactics and search
techniques used by other successful • The Professional Property Scout System
Professional Property Scouts in the online Training
member forums and chat rooms
• The membership in the National Association
• Be invited to participate in special contests
of Commercial Real Estate Property Scouts
and rewards programs that have great prizes
and incentives • Unlimited access to the extensive online
• Tap into a growing knowledge database of Property Scout training website and property
Frequently Asked Questions (FAQ) submission website
• Be able to learn from real-life examples of Some people wonder why the Investor Group
properties which have been submitted to the priced the program so affordably. The Investor
investor group and, most importantly, have Group’s reasoning is they want to charge only
made other commercial Property Scouts enough money for the prospective Property Scout
wealthy to take the opportunity seriously.
• Receive other more advanced training on Obviously, they could easily charge a
developing a wealth-oriented mindset, goal franchise, royalty or license fee for people to be
setting, investment and tax strategies, asset involved with them. They could also sell
protection and many other topics important expensive “master rights” to exclusive territories
to people who earn a great income and regions. They know savvy business owners
• Submit properties directly to the Investor and entrepreneurs would be eager to jump on
Group via the online Property Submission an opportunity like this, and invest thousands of

© 2009 National Association of


Commercial Real Estate Property Scouts - 11 -
Prospecting for Profits: How to Turn Dirt Into Dollars
An Introduction to the Profession of Commercial Real Estate Property Scouting

dollars in something that has the potential to profession where as an ordinary person, one can
produce this kind of extraordinary return-on- earn a high income and amass great wealth.
investment and payback.
But they decided against it. One of the reasons Section #11: Summary
is because this field has so much potential, and the
system they’ve designed is so success-certain that, The income one can earn as a Property Scout
if they did that, it would be like "picking pennies is in the six and seven-figure income range. This
off the sidewalk while hundred dollar bills passed income is within reach of almost any ambitious
them by." person- no matter what their previous job,
Stated differently, the Investor Group prefers profession, trade, age or experience is. The best
to remain laser-focused on becoming a dominant part is it can be done from the comforts of home.
force in the commercial real estate market. That's For a very modest cost, the Investor Group will
where the money is for everyone involved- train a person in everything they need to know to
especially the Property Scout. be successful.
The real money is in collaborating with trained No matter where a person lives, we sincerely
Property Scouts around the country, to find need help spotting promising properties around the
promising properties which the investor group can country to purchase, and the Investor group is
buy, ones where they can build up the value and willing to pay people handsomely for their efforts.
then sell at a significant profit.
That’s where the real money is for everyone
involved- especially the Property Scout. To learn more about Professional Commercial Real
Estate Property Scouting, visit:
Property Scouting is one of the most exciting
and profitable professions in the world. It’s a www.creapprentice.com

© 2009 National Association of


Commercial Real Estate Property Scouts - 12 -

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