Dr. Hutch InternationalStriving for Excellence

Research & Development The Research &

Development Department is the largest department here at Dr. Hutch International.

Every member of the research team must give 100% in their efforts to locate and research deals for our clients.

Dedication is the key to the ultimate performance by each person in this department.

Research Specialist Training In this presentation you will

learn how to locate and research real estate investment opportunities across the nation and around the world.

Notice that I said real estate investment opportunities, not just property. There is a big difference between investment deals and just property.

Identifying Property

Different areas of research

Commercial

Luxury Homes

Foreclosures

InternationalDr. HutchProjects

Residential

R&D Flow Chart

Director

Luxury Specialist Commercial Specialist International Specialist

Sr. Residential Specialist Sr. Residential Specialist

Executive Assistant

Foreclosures Specialist

R&D Coordinator

Projects Coordinator

Research Specialist Research Specialist

Finding Investment Opportunities

Dr. Hutch International uses the worldwide web to locate many investment properties. Each Research Specialist will be assigned to a set of websites to check daily. We also receive investment leads from sellers, other investors (also known as Bird Dogs), real estate agents, and consultants.

Finding Investment OpportunitiesThese are key words that we look for in ads:1. Distressed Property/or Seller2. Pre-foreclosure/Foreclosure3. Rental property/Turn Key Investment Property4. Take over payments5. Owner will carry6. Seller Finance7. Fixer/Rehabs8. No money down9. FSBO (for sale by owner)10. Selling entire portfolio11. Under market value/reduced price12. Investment Property for sale13. Section 8 tenant in place14. Recently rehabbed15. Seller motivated

Finding Investment Opportunities Many times as a Research Specialist it is hard to

determine if a property is under market simply by looking at the classified ad for the property.

There are only four reasons why investors should buy real estate and they are:

1. Cash Flow2. Appreciation3. Tax Shelter4. Amortization

If you see a classified ad, these are the only four things you need to look for.

For most residential properties comparables are used in determining the value – you can get comparables from title companies that show other similar properties sold in the area.

Finding Investment Opportunities

After locating an ad that could be an real estate opportunity,print the ad and begin filling out the Property Evaluation Worksheet.

Formulas

The following formulas are used by investors to assess the value of a piece of property in order to show if a property is overpriced, at, or under market value. (training on these will be scheduled).

1. Rule 72 (calculates appreciation)2. Cap Rate (used mostly with

multiple units)3. GRM (Gross rent multiplier)4. ROI (Return on Investment)5. NOI (Net Operating Income

Investment Property

Please click on the following link to view our Property Evaluation Worksheet

PROPERTY EVALUATION WORKSHEET.docThis form is essential to the

duties of each of the Research Specialists.

This form must be typed before handing it over to the R&D Coordinator.

Property Evaluation WorksheetThe following are the steps to completing this sheet. Some of the necessary information can

be obtained from the classified ad. Plug that into the worksheet before calling the seller/agent.

When calling the seller identify yourself in this manner:

“Hello my name is John Doe and I am a Research Specialist with Tricomm Worldwide Signature. We are investors who purchase property all over the country. I saw your ad on Craig’s List and am very interested in buying this property. I would like to ask you some questions in order to begin our due diligence.”

Now you begin asking questions from the worksheet and filling in the answers. After first filling in the date, fill in the following:1. The Source/Lead refers to the website, newspaper, bird dog, consultant or fellow

employee you obtained the lead from.2. Name of the owner, seller, or agent you are speaking with.3. Address including state and zip code4. Contact number.Important questions when speaking with seller/agent:1. How many bedrooms/baths?2. What is the square footage of the units or home?3. What year was the home/units built?4. Price the seller is selling it for?5. Are there any existing loans on the property? if so, for how much?6. Do you expect a down payment? If so, for how much?.7. One of the biggest questions each R&D Specialist must ask is “Why are you selling?”

This is key to showing the seller’s flexibility.8. What terms will the seller accept? i.e. seller financing or conventional only?

These questions will help to establish a rapport with the seller/agent and can show the flexibility of the seller/agent by their answers.

Property Evaluation WorksheetAfter the first series of questions you can

continue to the lower part of the worksheet.

1. Are there tenants) in the property? If so how much in rent do you collect?

2. What is your present mortgage payment?

3. How much is the yearly insurance/Taxes?

4. Do you pay any utilities associated with the property? If so what is the yearly or monthly amount?

5. Do you have any pictures of the property?

Property Evaluation Worksheet Once the worksheet is

completed please staple the original classified ad to it and turn it into the R&D Coordinator. It will be evaluated and then returned to you will additional instructions.

Obtaining Additional Information The R&D Coordinator will review

and evaluate the property and may request additional information.

These requests may include comparables, and title information to assist the R&D Coordinator in evaluating the value of the property.

Note: The Administrative Assistant is the person with access to title and comparables.

Working with the R&D Coordinator When the R&D Coordinator returns a

Property Evaluation Work Sheet to the Research Specialist requesting additional information this would take precedence over anything else the Research Specialist is currently doing. It is very important to quickly get the additional information for the R&D Coordinator.

In this business timing is everything you must move quick when a property appears to be a good deal.

Teamwork

Each member of the R&D Department must be a team player. Remember we have clients that are expecting us to locate and research real estate deals that will make them money.

“Teamwork is crucial in this department to meet daily, weekly, and

monthly quotas.”

There will be times when a Research Specialists will be asked to assist a co-worker who may be out sick or overwhelmed with work. Because, we are a team we should be happy to chip in and help.

Setting Priorities

When conducting research you must be able to prioritize the work all work returned to you from R&D Coordinator is a priority. But prioritizing your leads is key to being a successful R&D Specialists.

There are always some leads that are clearly investor leads vs. leads that are closer to retail. You would want to focus on the leads that are the most clear first – time is of the essence. There are a lot competition out there from other investors.

Quotas and Deadlines

Each Research Specialists is given a quota when hired. We expect the Research Specialists not to meet this quota for a couple of weeks until their feet it wet. After which time quotas must be met.

We take the quota seriously that is why daily we ask everyone in R&D to complete a task report which is handed into the Executive Assistant at the end of their shift.

This not only helps with meeting the quotas but also shows what has been done on any given property.

That way if the Research Specialists is absent from work we can still move forward knowing exactly where they left off.

If given a deadline to complete work by any supervisor this deadline is serious and must be accomplished if the Research Specialists cannot meet the deadline they need to let the supervisor know in a timely manner.

Conclusion

Dr. Hutch International encourages all of our staff members to learn and achieve their goals.

We want all employees to grow to the point of a real estate investor or real estate consultant.

We welcome you aboard and good luck.