Bruce Norris How To Make A Million Dollarss Maximizing The Next 24 Months

~~* ACADEMY
TheN ORRISGROUP
Subject To Buying........................................................................................................... 55
17. Equity Share to Owner Occupant ................................................................................. 121
16. Don't Sell- Hold............................................................................................................ 117
15. Using a Full-Commissioned Broker.......... ......................................... ....... .................... 113
14. Option Land Banking .................................................................................................. 105
13. Big Yard and Lot Splits .................................................................................................. 101
12. Manufactured Housing On Its Own Land .......... .......................................................... 87
11. Adding Square Footage To An Existing Home ............................................................. 85
10. Buying New Houses From a Builder ............... .............................................................. 83
9. Absentee System #2 ........................................................................................................ 79
8. Buying From Absentee Owners ..................................................................................... 71
7.
6. Negotiating with the Seller.................................................... ......................................... 43
5. Grab Bag of Handy One Liners ....................................................................... ............... 39
4. Does Selling to an Investor Make Sense?......................................... .............................. 35
3. Seeing a Property for the First Time .............................................................................. 29
2. How to Determine the Value of the Property ................................................................. 21
1. A Basic Understanding of Different Types of Entities ..................................................... 7
The Business That Can Change Your Life ............................................................................ 1
TABLE OF CONTENTS
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California Unsold Inventory (In Months)
Inventory declining
SOllrr"
3,5
~337,040
&&~~&&~~~~~~~~~0~~~~~~VV~~V
~~~~~~~~~~~~~~~~~~~~~~~~~~~
$650,000
$600,000
550,000
500,000
$450,000
$400,000
' ) 350,000
$300,000
$250,000
$200,000
California Median Price
Prices are accelerating
T tw "Jorri s G roup 2013
2. How I know we are here?
1. Welcome to Quadrant Four!
]N;
Driven by p ent up demand
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
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Driven by payment cheaper than rent
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Driven by tax law changes
1.1")
Driven by Wall Street's sudden interest
t-=:-
Driven by government policy
N
,.....
Sacramento
Driven by affordable payments
NODs vs. Sales
Driven by inventory levels not jobs
10,000
20,000
30,000
40,000
50,000
60,000
70,000
24
MONTHS
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P The No rris C; ro llP 2013
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Existing Sales
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~ -~!--
MILLION DOLLARS MAXIMIZING THE N EXT
Mood shift in the news media
TO MAKE
3. Unique to 2013
How
Driven by builders not creating their share of inventor
2002
2003
..
2005
'"'"
2006
Sacramento
2004
:..t
2009
2010
Easier and easier to sell

Repairs get less and less necessary
Sales are quicker
Fallouts become profitable
You make more than you thought you would
You make more on lengthy projects
Land prices explode at the end of quadrant four, in the beginning land is cheap
Buyers less picky
Realtors more flexible on fees
Auctions may work to your advantage
ID T he No rris Grou p 20 13
2012
E..-'a/l' R em",!' C. ollllcil
2011
I Ol/ra: j'n"lhml C(/(lfol1JliJ ReNI
2008
Time fixes mistakes
Riverside
2007
4. What's great about quadrant four?
5,000
10,000
2001
'Q
20,000 "
15,000
<D
25,000 01
30,000 01
35,000 01
40,000 . . . - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - . . . . . ,
Single Family Home Construction
'N;
Learn how a builder thinks

Understand what happens to land prices
Optioning land
Subject to buys
Build new
Add a room
Short sales (fallouts the best)
Buy from people direct
0%
10%
20%
30%
40%
50%
60%
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Affordability chart hits historic low range

California Affordability
6. Leverage is a beautiful thing in quadrant four until:
Buy finished lots below replacement cost
00-
MILLION DOLLARS MAXIMIZING THE N EXT
Anything that takes time is well rewarded
MAKE
5. H ow to be rich by the end of q uadr a nt four?
How TO
$155,040
$160,560
$157,600
$150,560
$148,000
$142,560
$142,080
$448,216
$278,792
$219,968
$242,408
$232,000
$193,800
$200,700
$197,000
$188,200
$185,000
$178,200
$177,600
$580,270
$348,490
$274,960
$303,010
$290,000
2,833.03
1,707.51
1,194.32
1,271.83
1,175.51
1,337.38
1,303.47
1,112.77
961.56
935.46
977.35
1,022.79
1,089.44
1,152.40
998.33
997.90
971.90
Price/earnings ratio gets too high
$86,160
$89,440
$91,540
$91,440
$95,920
$107,700
$111,800
$114,400
$114,300
$119,900
3,163.00
1,906.94
1,333.82
1,420.38
1,312.81
1,493.59
1,455.71
1,242.74
1,073.87
1,044.72
1091.5
1,142.25
1,216.69
1,287.00
1,114.93
1,114.45
1,085.42
The Norris Group California Mood-o-Meter
Moodometer reads equal to past highs
$37,967.76
$22,883.28
$16,005.84
$17,044.56
$15,753.72
$17,923.03
$17,468.58
$14,912.90
$12,886.44
$12,536.66
$13,098 .02
$13,707.02
$14,600.24
$15,444.00
$13,379.72
$13,373.46
$13,025.01
n 'l1" Norri. G roup 20 1.\
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37.50%
27.15"1i.
29.53%
27.30%
23.77%
29.17%
50.00%
47.15%
39.00%.
32.78%
30.88%
31.21%
31.64%
62.66%
63.55%
53.09%
50.66%
44.91%
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5.88x
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4.8%
4.5%
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9.1%
7.6%
6.6%
6.5%
7.3%
7.8%
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15.0%
15.3%
12.8%
12.5%
SOl/ret:
$59,948
$61,021
$58,931
$57,708
$57,708
$57,708
$57,287
$35,800
$37,050
$38,150
$39,318
$40,600
$41,956
$43,319
$23,300
$24,300
$25,200
$26,400
$29,000
A
MILLION DOLLARS MAXIMIZING THE NEXT
Prices of existing homes exceeds the new homes
TO MAKE
$400,000
$300,000
::E
$0
$100,000
0 $200,000
......
......
$500,000
$600,000
1989
--
--
1992
1998
_ New
1995
--
--
Exisitng
2001
24
MONTHS
2004
Percent
2007
2010
- -
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-
Price of New Housing vs. Existing Housing - Southern California
How
0.0%
20.0%
40.0%
60.0%
80.0%
100 .0%
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to
resell for a profit when you
"C" corporation
The Norris Group 2013
Limited Partnership
LLC-Limited Liability Company
4. Entities most often used by investors who buy and sell real estate
Be able to do installment sales
Be allowed to do 1031 exchanges
Have capital gain privileges
Have rental income not taxed by social security and Medicare
Depreciate property
3. You want to have a non-dealer status so you can:
Installment sales treated as "all cash" received
No 1031 exchanges for dealers
No capital gains income allowed
All rental income is taxed by social security and :Medicare
Cannot depreciate your real estate
You will pay social security tax and Medicare tax on net profits
2. Do not buy and sell in your own name because you become a "dealer"
1. Considered a "dealer" transaction by the IRS. If your intent was

bought, it's a dealer transaction
If you are going to buy and sell properties:
For the purpose of this course, we'll brieRy cover tax aspects, liability protection and avoidance of dealer
status.
T(;
TO MAK E
A
24
MONTHS
I do not hold any rental real es tate in any "C" corporation for the following reason:
There is no capital gain advantage given to corporate ownership of real estate
There is no 1031 advantage
~.
I use a "C" corporation as owner of The Norris Group for the following reasons:
The Norris Group has employees. The corporation can deduct profi t sharing and medical
insurance from its income. The employee also avoids being taxed on these "benefits"
The corporate entity provides a "barrier" to lawsuits. The corporation has separate tax ID #
and is a separate " legal" entity

;>
Shou ld something happen to me, the busines s entity survives and goes o n
I could transfer ownership of the corporation by the sale of its stock
Flexible tax year. I have two "C" corporations. One has a year end ofJune 30th, the other
December 31st.
}) Can retain some earnings w ithin the corporation at favorable rates
2. "C" Corporations:
Transfer requires a signature from the trustee on a grant deed and a tru st certification docume nt
signed and notarized
Transfer out of trust never necessitates showing the trust document
Can change trus tee if you wish
The beneficiary can change without having to sell the property
The beneficial interest can be individual, LLC, or corporation
The beneficial interest is undisclosed
The only name ever seen when the grant deed is recorded is the tru stee
Four players in a land trust
Grantor: Originator of the tru st
\) Trustee: Person responsible for managing the tru st and whose name title will record in (see
sample)
Beneficiary: The underlyi ng "owner" of trust asse ts.
P owe r of direction
Not breaking any laws, but we are breaking the "policy" the lender has of calling the loans because
of a "due o n sa le" clause
N o t liability protection, but rather a smoke screen to camouflage the transfer from a lender
I use land trusts whenever I take ownership of a property "subj ec t to" existing financing
1. Land trusts:
The following entities are what I use in my business and why:
Land Trusts
"S" corporatio n
How
BASIC UNDERSTANDING OF DIFFERENT TYPES OF ENTITIES
The Norris Croup 2013
The tax filing fee is far less for a limited partnership than an LLC if you are doing volume
Can put together a group of investors for larger projects
The limited partnership has a proven track record in the courts
If I were going to use a limited partnership, I would have a "C" Corporation as the general partner
(Limits liability)
5. When I "buy and sell" real estate, my preference would be to use either a limited partnership or
an LLC.
You can "fund" an LLC with currently owned properties without creating a taxable event
Can make allocations not in proportion to investment in the T,I.C
No passive loss restrictions if member material participates
No "double tax" potential with an LLC
The LLC pays a filing fee, not income tax
Income passed directly through to the members without social sec urit y or Medicare tax
1031 exchange allowed
Capital gai ns treatment allowed
Limited liability for managing partner and member
4. When I hold rental real estate my preference would be to use an LLC:
I would not use the "S" corporation if I had employees and provided insurance and retirement
benefits
Limited fridge benefit deductions
Calend ar year end filing only
Cannot "retain" earning in this type of corporation
After taking a reasonable salary, you can take the remaining income as dividends, which are taxed at
a lower rate and not double taxed within the "S" corporation
There wou ld be no double taxati on. All profits flow to the shareholders at year end
Same advantages of liability protectio n
3. An "S" corporation is one I haven't used:
I do no t "buy and sell" in a "C" corporation because:
The way you get paid from a "C " corporation is to take a paycheck
This means you pay social security and Medicare taxes
If you take a dividend, you are taxed both individually and as a corporation
)} If you leave the money in the "C" corporation, you could end up paying double taxation when
you eventually take the money out
1. A
TO MAKE
A
24
MONTHS
The , orris Croup 2013
Having a multi-partner limited partnership or LLC gets around the 3.33% pre-payment of
California tax
Income flows directly to the partners in both LLCs and limited partnerships
ACADEMY
How
Trust Property.
The Trustor will conveyor cause to be conveyed to the Trustee,
without consideration, in fee simple absolute , the real property described in Exhibit
"A" attached hereto, hereinafter referred to as "Trust Property" . The said real
property will be accepted by the Trustee subject to any taxes, assessments, liens,
charges and encumbrances, whether known, unknown , discoverable or of record.
Any additional property conveyed to the Trustee without written acceptance by the
Trustee, shall not be subject to this Agreement nor a part of the Trust Property. All
property conveyed to this Trust and the proceeds therefrom shall retain its character
whether separate property or community property.
Beneficiaries. The Trustee agrees to hold the Trust Property so conveyed, the
proceeds and profits therefrom and any funds attributable thereto that may come
into the Trustee's possession, for the benefit of the person or persons named in
Exhibit "B" attached hereto, hereinafter referred to individually as "Beneficiary" and
collectively as "Beneficiaries", and their successors in interest or assigns according
to their respective interests as therein provided .
Beneficial Interest.
3.
4.
5.
(2) the power to manage, possess, use and control the Trust Property;
(1) the power to designate the person or persons who have the power to
direct the Trustee to convey, encumber or take other action affecting the title
to the Trust Property as hereinafter set forth;
(a.) The interest of the Beneficiaries, their successors in interest and assigns shall
consist solely of the following :
Purpose.
The purpose of this Trust is to hold title to the Trust Property, as
hereinafter defined, to hold such title until the sale or other disposition of the Trust
Property, all subject to the direction of the Beneficiaries, as hereinafter defined. This
Trust has not been created to circumvent any provision of an existing lien or
encumbrance on the subject real property.
Effective Date and Identification. The effective date of this Agreement shall be
the later of the date the Trustee executes the Agreement or the real property,
subject of this Trust, is conveyed to the Trustee. This Title Holding Trust shall be
identified as and shall be commonly referred to as the _ _ _ _ _ _ _ _ __
Trust.
2.
1.
fh e '\Iorr; , Croup 2013
TITLE HOLDING TRUST

AGREEMENT
Web Portal Download
THIS TITLE HOLDING TRUST AGREEMENT, entered into this _ _ day of
______ , is made by and between

hereinafter
designated as "Trustor", whether one or more, and _ _ _ _ _ _ _ _~-_=--_:_
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _-', hereinafter designated as "TrusteeD ,
upon the following terms and conditions.
1. A
6.
A
24
MONTHS
(4) the right to appoint a Successor Trustee in the event of the Trustee's
resignation , death or incapacity.
(3) the right to receive the earnings, avails and proceeds from leases,
mortgages, sales, other uses and other dispositions of the Trust Property;
and
TO MAKE
(a.) The Trustee shall not transfer title, nor further encumber the Trust Property, nor
take any action affecting the title to the Trust Property except upon the written
direction of the person or persons holding the Power of Direction for this Trust, as
hereinafter described. It is agreed by the parties and by any person who may
hereafter acquire any beneficial interest in this Trust that the Trustee will deal with
Power of Direction.
(e.) The Beneficiaries shall have sole possession, management and control of the
Trust Property, selling, leasing, collection of rents, repairing, maintaining and
improving tile Trust Property and the Trustee shall have no right or duty in respect
to any such matters . The Trustee shall not manage or operate the Trust Property
nor undertake any activity not strictly necessary to the fulfillment of the purposes set
forth in this Agreement. The Trustee shall have no right or duty in respect to the
payment of taxes or assessments or obtaining insurance, defending litigation or
other matters relating to the property, except on written direction accepted by the
Trustee and after the payment to the Trustee funds necessary in the Trustee's
absolute discretion to carry out the beneficiaries' directions without liability to the
Trustee. The Beneficiaries are not the agents of the Trustee for any purpose and
do not have any authority to contract or do any other act for or in the name of the
Trustee or to obligate the Trustee personally or as a fiduciary .
(d.) The death of any Beneficiary shall not terminate the Trust or affect the rights
or powers of the Trustee or Beneficiaries except as provided by law. On the death
of any Beneficiary his/her interest, except as otherwise specifically provided, shall
pass to his/her executor or administrator and not to his/ her heirs at law. In the
event of a death of a Beneficiary, before the Trustee shall be required to execute
any conveyance, assignment or transfer with respect to the Trust Property or
beneficial interest hereunder, the Trustee must be satisfied that there are not
inheritance, transfer, estate or gift taxes due to the State of California or to the
United States of America by reason of such death or that such taxes are paid in full.
(c.) No Beneficiary at any time shall have any right, title or interest in or to any
portion of the legal or equitable title to the Trust Property.
(b.) Such rights and powers shall be personal property and may be sold, transferred
or assigned. No assignment, sale, or transfer of the interest of a Beneficiary shall
be binding on the Trustee until the original or executed duplicate of the assignment
is delivered to and accepted by the Trustee in writing except where such interest
may pass or be transferred by a valid decree or order of judgement of a court of
competent jurisdiction. If such requirements are not met, the transfer shall be void
as to said assignees, transferees or purchasers.
How
(,.'/ The Norr;, Group 20"13
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7.
Group 21113
--
(c.) The Trustee, upon receipt of funds and upon proper written direction , shall pay
insurance premiums, taxes, assessments, liens or encumbrances, expenses of
maintenance, or any other charges in connection with the Trust Property. The
Trustee is not obligated to advance the Trustee's own funds for such purposes and
(b.) The Trustee may receive and accept as part of the Trust Property money, rent
or other income derived therefrom and the Trustee may receive other payments
made by the Beneficiaries of the Trust for disbursement for various expenses or
charges relating to the Trust. The Trustee shall have no responsibility for the
collection of such funds and any funds so received shall be kept in a non-interest
bearing commercial checking account(s).
(a.) On the written direction of the party or parties designated herein as having the
Power of Direction, the Trustee will make deeds for, or deeds conveying directly to
a grantee, or mortgages or trust deeds or execute leases or otherwise deal with the
title to the Trust Property as well as the cash or other assets which become subject
to the Trust.
Trustee.
(f.) Such Power of Direction shall not be affected by the legal incapacity of the
Beneficiaries and in the event persons other than corporate entities become the
holders of the beneficial interest of the Trust in whole or in part, the rights, powers
or duties referred to herein shall not be affected by the death or legal incapacity of
any such persons. Provided however, that no such power to direct shall be
exercised by any person while legally incompetent.
(e.) The Trustee shall not be required to inquire into the propriety of any direction
given by the Beneficiaries or the holder of the Power of Direction. It is further
agreed that the Trustee shall not be obligated to make any determination of the
merits of any action directed by the Beneficiaries or the holder of the Power of
Direction, but shall act solely in accordance with the provisions of the Trust
Agreement and shall incur no liability for following such direction .
(d.) In the event of the death or incapacity of the holder of the Power of Direction
or revocation of the Power of Direction, the Beneficiary or the majority in interest of
the Beneficiaries by written instrument delivered to the Trustee shall designate a
successor to exercise the Power of Direction. Such instrument shall be signed by
all the then Beneficiaries including those dissenting to the designation of the
successor.
(c.) The Beneficiary or the majority in interest of the Beneficiaries by written

instrument delivered to the Trustee, may revoke the foregoing Power of Direction
anddesignate a successor to exercise the Power of Direction .
(b.) The Power of Direction shall be initially vested in:_ _ _ _ _ _ _ _ __
the Trust Property, including cash or other assets of any kind which may have
become subject to the Trust, only when authorized to do so in writing by the person
or persons who shall be vested with the Power of Direction.
1. A
'N;
ACADEMY
---
How
A
24
MONTHS
\' 'n,t' .
U.) The Trustee may at any ti me resign by send ing, regi stered or certified mail, a
notice of such intention to each of the then Beneficiaries at the Beneficiaries' latest
address appearing in the records of the Trustee. Such reSignation shall become
effective twenty days after such mailir,g, On such resignation a successor may be
appointed in writing by the BenefiCiaries, and the Trustee shall thereupon convey
or transfer the Trust Property to such successor. If no successor is named as above
provided within twenty days after the mailing of such notices by the Trustee, the
Trustee may convey or transfer the Trust Property to the Beneficiaries in
accordance with their interests hereunder, and the conveyance may be recorded ,
as the case may be, by the Trustee and such recording shall constitute delivery of
conveyance or transfer to the Beneficiaries. The Trustee, at the Trustee's option,
(i.) The Trustee shall not be personally liable in any manner by reason of the
Trustee holding the legal and equitable title to the Trust Property and the
Be neficiaries agree to fully indemnify and hold harmless the Trustee for any
damage, expenses, cost, attomey's fees and other liabilities or obligations that the
Trustee may incur arising out of or in connection with duties as Trustee .
(h.) The Trustee shall not be required to assume any personal obligation or liability
in dealing with the Trust Property or to make the Trustee liable for any damages,
costs, expenses, fines or penalties, or to deal with title to the Trust Property so long
as any money is due to the Trustee hereunder.
(g .} The Trustee shall have no obligation to file any income, profit or other tax
reports or returns or pay such or any other taxes, The Beneficiaries will make all
such returns and reports , and pay general real estate and all other taxes or charges
payable with respect to the Trust Property and to the earnings, avails and proceeds
of the Trust Property or based on their beneficial interests under this Agreement.
(f. ) The Trustee shall not be obligated to pay any money for this Trust or the Trust
Property or to prosecute or defend any legal proceeding involving this Trust or the
Trust Property unless the Trustee shall elect to do so and be furnished sufficient
funds or be indemnified to the Trustee's satisfaction. If the Trustee is served with
process or notice of legal proceedings or of any other matter concerning the Trust
or Trust Property, the sole duty of the Trustee shall be to forward the process or
notice fo the Beneficiaries. The latest address appearing in the records of the
Trustee shall be used for all mailings.
(e.) The Trustee shall have all powers conferred on the Trustee by law and all
powers contained in California Probate Code Sections 16200 through 16249 and
any successor statute.
(d.) The Trustee is not required to procure or maintain any insurance, payor secure
the payment of any liens, insurance premiums, encumbrances, taxes, assessments
or other charges against the Trust Property , or to collect or disburse any rents
derived therefrom or protect any title Trustee may have or in any respect care for,
maintain, or protect the Trust Property.
the Beneficiaries agree to pay all sums necessary to pay such expenses and
charges.
TO MAKE
01
ris G roup ~Ol
8.
([) Th~ Norris Groll I' 201 3
--.:
(a.) By amendment in writing delivered to and accepted by the Trustee, any

Beneficiary having a vested interest hereunder shall at any time or times have the
right to revoke, alter or amend the provisions of the Trust Agreement relative to the
person or persons who may be entitled from time to time to the ownership and
enjoyment of said Beneficiary's interest hereunder.
Revocation and Termination.
(p.) The Trustee shall provide Annual Statements of Account to the Beneficiaries
only at such time as the Trust Property consists of asse~s other than real property.
Upon termination of the Trust a closing statement shall be provided to final
distributees.
(0.) The Trustee is not personally liable by reason of any contracts executed by the
Trustee pursuant to the terms of this Trust, and the Trustee may contract in such
manner as the Trustee deems advisable to exclude any such personal liability and
to limit any such liability eXClusively to the Trust Property. The Trustee shall not be
required to execute any instrument containing covenants of warranty or do any act
which in the Trustee' s exclusive judgement would constitute a violation of Califomia
and Federal Law.
(n.) The Trustee shall not be liable for the consequences of action taken when no
written notice of death of a Beneficiary nor change of address has been received by
the Trustee.
(m.) If the Trustee shall make any advances or incur any expenses on account of
the Trust or the Trust Property or shall incur any expenses by reason of being made
a party to any litigation in connection with this Trust or the Trust Property or if the
Trustee shall be compelled to pay money on account of this Trust or the Trust
Property, wheth er for breach of contract, injury to person or property, fines or
penalties under any law, or otherwise, the Beneficiaries jointly and severally on
demand shall pay to the Trustee, with interest at ten percent (10%) per annum, the
amount of all such expenses, advances or payments made by the Trustee, plus all
the Trustee's expenses, including reasonable attomey's fees. The Trustee shall not
be obliged to convey, transfer or otherwise deal with the Trust Property or any part
of it until all of the payments, advances and expenses made or incurred by the
Trustee shall have been paid, with interest.
(I.) The Trustee is entitled to compensation as set forth in the attached fee
schedule, designated Exhibit C. Prior to any transfer of a beneficial interest all fees
and expenses of the Trustee must first be paid in full.
(k.) In the event of the death or incapacity of the Trustee, the Beneficiaries shall
appoint a successor Trustee. Every successor Trustee shall become fully vested
with all the title, estate, rights , powers, trusts, and shall be subject to the duties and
obligations of its predecessor.
may institute legal proceedings for appropriate relief in any court of competent
jurisdiction. In the event of such legal proceedings , the cost of same , including
attomey's fees , will be bome by the Beneficiaries.
1. A
'N;
A CA DEMY
11 .
10
9.
How
A
24
MONTHS
This Trust Agreement contains the entire understanding between the parties hereto,
and except as heretofore set forth in the Agreement, may be amended, revoked or
terminated only by written Agreement Signed by the Trustee and the all the
beneficiaries in interest.
Entire Agreement.
This Agreement shall not be recorded unless the Trustee is instructed to do so by

the Beneficiaries or the holder of the Power of Direction; however, in the event this
Trust is recorded, such recording shall not be notice of the rights of any person
derogatory to the ti tle or powers of the Trustee.
Recording of Agreement.
No third party shall have the right or have the duty to question the actions of the
Trustee, nor shall anyone who may deal with the Trustee be required or privileged
to inquire into the necessity or expediency of any act of the Trustee, or into the
provisions of this Agreement. Every deed, mortgage, trust deed, lease or other
instrument executed by the Trustee in relation to the Trust Property shall be
conclusive evidence of the following: that at the ti me of the delivery of said
instrument the Trust created by the Agreement was in full force and effect; and,
that the instrument was executed in accordance with the terms and conditions of this
Agreement and all its amendments, if any; and, is binding upon all Beneficiaries
under it; and, that the Trustee was duly authorized and empowered to execute and
deliver such instrument; and, if a conveyance has been made to a Successor
Trustee, that the Successor Trustee has been properly apPOinted and is fully vested
with all the title, rights , powers, estates, duties and obligations of the predecessor
Trustee. The name of any Beneficiary wi ll not be disclosed to the public, unless
otherwise directed in writing, required by law or if the Trustee is ordered to do so by
a court of competent jurisdiction.
Dealings with Trustee.
(d.) If any property remains in this Trust 30 years from the date of the Agreement
or any extension thereof, it shall be sold at public sale by the Trustee on reasonable
notice as determined by the Trustee and the net proceeds of the sale shall be
divided among those who are then entitled thereto under this Agreement in the
proportions in which their interests are so determined.
(c.) The Trust shall terminate, unless sooner revoked by the Beneficiaries, when
all of the Trust Property has been conveyed by the Trustee and all funds or other
property contained in the Trust shall have been paid out or delivered under the
terms hereunder, or until 30 years from the date of the Agreement or extension
thereof whichever event shall first occur.
(b. ) Any Beneficiary holding his/her interest as community property shail have the
right to effect his or her's one-half interest of said community property.
TO MAKE
rh c ",""rris C roup 21J I.~
D T hl;
'J orri~
The validity of this Trust, its construction, and all rights hereunder shall be
determined by the laws in effect from time to time, for the State of California.
Governing Law.
Any notice in writing required herein to be given to a Beneficiary or the Trustor will
be sufficiently given if actually received or personally delivered, or if mailed by
certified mail with retum receipt requested, in an envelope addressed to such person
at the address shown herein or at such other address as such person may specify
by written notice to the Trustee. Any notice in writing required to be given to the
Trustee will be sufficiently given if actually received or personally delivered, or if
mailed by certified mail with return receipt requested , in an envelope addressed to
the Trustee at his prinCipal office or at such other address as he may specify by
written notice to the Beneficiary, Trustor, or holder of the Power of Direction.
Notices.
The terms and conditions of this Agreement shall inure to the benefit of and be
binding on the successor Trustee and on all assigns and successors in interest of
any Beneficiary.
Binding Effect.
In this Agreement the plural includes the singular, and vice versa, and the
masculine gender includes the feminine.
Construction.
Gro up 201.3
TRUSTOR:
TRUSTEE:
WITNESS OUR SIGNATURES the day and year first above here written .
15.
14.
13.
12.
1. A
TO MAKE
Exhibit B
24
MONTHS
6.
5.
4.
3.
1.
Beneficiary or benefi c iaries ot the trust identified as _ _ _ _ _ _ _ _ _ _ _ __
How
:< .
11,e ,",o rtis Grnup 2013
Escrow No:
.Q-
,and
; rne Norris Croup 2013
_i,IIi E
Full power and authority is hereby granted to said trustee to improve, sulxiivide, protect, conserve, sell, lease, encmnber and otherwise man
age
and dispose of said property or any part thereof, to dedicate parks, streets, highways or alleys to vacate any sulxiivision or part thereof,
and
to resubdivide said property as often as desired, to cootract to sell, to grant options to purchase, to sell on any terms, to coovey either with or
without consideration,to coovey said property or any part thereof to a successor or successors in trust and to grant to such successor or succes
sors in trust all of the title, eslJlte,powers and authorities vested in said trustee,to donate,to mortgage,to pledge or otherwise encmnber said prop
erty, or any part thereof,to lease said property or any part thereof,from time to time, in possession or reven;ion by leases to commence in prae
senti or in futuro,and upon any terms and for any period or periods of time,not exceeding in the case of any single demise the term of 99
years, and
to renew or edIni leases upon any terms and for any period or periods if time and to amend.,change,or m.xIifY leases and the tmns ao:I provis ions
thereof at any time hereafter,to contract to ma1ce leases and to grant options to lease and options to renew leases and options to purchase the
whole or any part of the reven;ion and to contract respecting the m.a.nner of fixing the amount of present or future rentals,to partition or to ex
change said property,or any right,title or interest in or about or easement appurtant to said premises or any part thereof, for any other real or
personal property,to grant easements of charges of any kind,to release,convey or assign any right,title or interest in or about or easement appur
tenant to said premises or any part thereof,and to deal with said property and every part thereof in all other ways and for such other considera
tions as it would be lawful for any person owning the same to deal with the same, whether similar to or different from the ways above specified,
at any time or times hereafter,as provided for under sections 16200 thru 16249 of the 1991 California Probate code
TO HAVE AND TO HOLD the said property in fee simple forever, with the appurtmances attached thereto upon the trusts and for the uses
and purposes herein and in said Trust Agreement set forth.
TIllS TRANSFER IS EXEMPT FROM REASSESSMENT UNDER. SEC.62(d)R&TC.

hereinafter referred to as the "property";
as TRUSTEE(S) under the provision of that certain Trust Agreement dated the
day of
and knOWD as
, the following described real property in the
County of
State of California:
City of
hereina&r called the uproperty";
hereby GRANT(S) to
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged.
City of
_ _ deed to or by trustee not pursuant to a sale
o Unincorporated area.:
o computed on full value less value o f liens or encumbrances remaining at time of sale.
ofliens and encumbrances is $ 100.00 or less and there

is no additonal consideration received by the grantor
CITY T AX_ $
and is
R & T 11911"
~The value of the property in this conveyance exclusive
SPACE ABOVE TIllS LINE FOR RECORDER'S USE
GRANT DEED
1--
o computed on full value or property conveyed, or
TIlE UNDERSIGNED GRANTOR(S) DECLARE(S)

IXX:UMENTARY TRANSFER TAX is $
APN:
Title Order No:
AND WHEN RECORDED MAIL THIS DEED AND. UNLESS

OTHERWISE SHOWN. MAIL TAX STATEMENTS TO:
Web Portal Download
BASIC UNDERSTANDI NG OF DIFFERE NT TYPES OF ENTITIES
RECORDING REQUESTED BY:
1. A
~d
24
CO~.
MONTHS
representations, wammtles.
discharge thereof; and it shaU be expressly lUldexstood that any
TO MAKE
undertakings j
known to me (or proved to me on the basis of satisfactory evidence) to be

the person (5) whose II8II1e (5) islare subscribed to the within instrument and
acknowledged to roe that belsbelthey executed the same in hislber/their
authorized capacity (ies), and that by biJherltbeir sigD8ture(s) on the
instrument the person (s).. or the entity upoo behalf of which the person(s)
acted., executed the insl1UIDenl
~----~--~~--~~~~~~ ~y
On_---,-_ _ _..,-_ _ _ __ before me,,_ _ _ __

pers~ya~______________________~~
COUNTYOF____________________
Doted
STATE OF CALIFORNIA
SUCCESSOR TRUSTEE:
ALTERNATE SUCCESSOR TRUSTEE:
IN THE EVENT OF resignation or tenninatioo of the trustee, the following persons IU1: nominated successor trustees. The fil.ing of a death cer
tificate of the original Trustee, along with an Affidavit of AccepIanCe by the First SUCXleSS Trustee shall be effectiw to vest title to him.
Filing of a deatb certificate of B successor trustee or D.Il Affidavit ofNou-Acceptanoo by a Suocessor Trustee, along with an Affidavit of Accep
tance by an Alu:mate Successor Trustee shall be effective to vest title in such Alternate Successor Trustee.
AND the Gnwtor hereby covenants with said Grantee that Grantor is lawfully seized of said property in fee simple: that the Grantor has good
right and lawful authority to sell and COD',ey said property; that the Grantor hereby fully warrants the title to said property and will defend the
SIIlIIC against the lawful claims of aU persons whomsoeVCI:; and thllt said property is free of aU encumbnmocs; except taxes acc:ruing subsequent
to _ _ _ __
The interest of each bt:neIiciary UDder the trust agreement bereundcr and of aU per.wns claiming I.IIldcf- them O any of them sbalI be only in tbe
possession, earnings, avails and proceeds arising from the sale or other disposition of said property, and such interest is hereby declan:d to be
personal property. and DO beneficiary hereunder sba1J have any title or interest, legal or equitable, in or to said property as such. but only an in
terest in the possession, earnings, avails and proceeds thereof as aforesaid.
with the trusts, conditions and limitations contained in this Indenture and in said trust agreement or in some IIJJJCTldment thereof and binding
upon all bcoeticiaries thereuDder, (0) that the Trustee was duly authorized and empowered to execute and deliver every such deed, trust
deed,
lease, mortgage or other instrument and (d) if the coowyance is made to a successor or suooessors in trust, that such a.re fu1Jy vested with all
the title, estate, rights, powen;, authorities, duties and obligations of its, IUs or their pre.da:essor in trust
dance
In no case shall any party dealing with said trustee in relation to said property, or to whom said property or a.ny pan thereof shall be conwyed.
contracted to be sold, leased or mortgaged by said trustee, be obliged to see to the application of any pw-chas~ mon~. rent or IIIOIlC'}' bom>Wl:d
or advanced on said propc:tty,or be obliged to see that the terms of this trust have been complied with, or be obliged to inquira into the neces
sity
or ~ency of any act of said trustee, or be obliged or pnviJeged to inquire into any of the terms of said trnst agreement; and CM:f}' deed,
trust
deed, mortgage, lease or other instrwnent executed by S&ld trustee in relation to said property shaU be conclusive evidence in favw of eve!)' per
son relying upon or claiming unde sucb conveyance, lease or other instrument., (a) that at the time of the delivery thereof the trust created
by this lndalture and by said trust agreement was in full foroe and effect,(b)that such conveyance or olber insttumcnt was executed in accor
berein.afu:r made OIl the part of the Trustee, wInJe !:t-form purJXlrtiog to be the representatioos, wammoes, covmants, undertak.
ings
and agreements of said TI1IStee, arc nevertheless made and intended not II.S pernmol representations. warrantles, covenants, uncIerta.Icings
and
agreements by the Trustee or fOT the pwpose or with the intention of binding said Trustee personally, but an: made ond intended for the purpose
of binding only the trust property specifically described herein, and that DO personal liability or personal responsibility is assumed by nor sbalJ
at any time be asserted or enforceable against the Trustee individually on aOCOUllt of any instrument executed by or OIl acoounl of any represen
tation. warranty, COvet\llDt, WldertaIci.ng or Bgreement of the said Trustee, either expressed or implied, all such personal liability, if any, be
ing expressly waived and released and aU persons and corporations wh~ and wbalSOOveJ' shall be charged with notice of this condition
from the date of the ~ for record of this deed
I~enlS
payment
How
T ilt Nmri, (;rour 2111 '\
lI-i' N;
Example 1
The seller of the property is in foreclosure with two days to go before a trustee sale. Since the seller is under
extreme pressure, the buyer will have a huge advantage and be able to drive th e price down.
It is very important that the investor understand the definition of market value, Any deviation from the
definition and the final price for the proper ty will change considerably. Here are th ree examples whe re
market value and the final selling price were different.
The most probable price which a property shou ld brin g in a competitive and open market under all
cond itions requi site to a fair sale, the buyer and seller, each acting prudently, kno\,vledgeable and assumi ng
the price is not affected by undu e stimulus. Implicit in this definition is the consummation of a sale as of
a specified date and the passing of title from the seller to buyer under conditions whereby: (1) buye r and
seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what
he considers his own best interest; (3) a reasonable time is allowed for ex posure in the open market; (4)
payment is made in terms of cash in US . dollars or in terms of finan cial arrangements comparable thereto;
and (5) the price represents the normal consideration for th e property sold unaffected by special or creative
financin g or sales conc essions granted by anyone asso ciated with the sale.
Market Value Is Defined As
The definition of an appraisal is an es tim ated value se t upon a property. The type of value I am most
interested in is market value.
Purpose of an Appraisal
My goals in this section are briefly:

1. For you to have an understa nding of how appraisers look at properties.
2. To help you acc uratel y determine tbe value of your invest ment property.
There are two areas where investors lose money-underestimating repairs and over-inflating value. There
have been volumes "written about the appraisal business.
TO MAKE
A
24
MONTHS
Climate
N atural disaster area (California and earthquakes)
Drainage
Accessibility
Physical aspects of the property and area. These include:
Money supply tight or available

Is the government spending on military contracts
Is unemployment high or low
4.
Building codes
Population shifts
Change in age of population
Social
Zoning of property
3. Political
Is the economy expanding or in a recession
2. Economic
1.
<1 :nl , e . o rris Group 2013
There are four forces that affect the value of real estate. Each one should be considered
prior to purchasing an investment property.
Example 3
An investor has just finished repairs on a property. The investor had fi gured the value of the home to
be $500,000. This value was determined by using three similar comparable sales in the immediate area.
Unfortunately, the investor didn't take notice that all of the properties took six months to sell. Our seller
will ru n out of money after making only three months of payments on the house. Since this investor's time
frame is different, he had better lower the price now to compensate for the diffe rence. The house will sell
for less because more time would be needed to obtain "market value."
Example 2
A bu yer flies in from out of state and makes an offer on a house. The offer is accepted quic kly. The buyer
later finds out that the property had been on the market for over one year with no offers. This is a perfect
example of an ill-informed buyer paying more th an market value for a property.
ACADEMY
How
:.
TO DETERMINE THE VALUE OF THE PROPERTY
he N onj, Group 2013
Auction properties
Bank repos
6. Competition
Example: You buy a lot in a custom area. All of the neighbors build 5,000 sq. foot homes to live in.
You build a home of similar quality of 3,000 feet. Your home will be \,vorth more per square foot
due to the principle of progression. The home is underbuilt for the area.
5. Progression
E xample: A builder buys a tract lot and builds a custom home. The neighboring homes are half the
size and of inferior quality. Had the builder built the home in a custom area, the property would be
\,\Torth $600,000 . Due to regression, it is worth only $400,000. The house is ove rbui lt for the area.
4. Regression
Example: A buyer finds two identical new homes in similar areas. The buyer will buy the least
expensive one due to the principle of substitution. (That is why it is important to check for "for
sales" not just comps when evaluating value, especially in a down market.)
A buyer will not pay more for a property than the cost of buying a similar property.
3. Substitution
If supply of buyers is greater than houses, a sellers market exists.
If supply of houses is greater than buyers, a buyers market exis ts.
2. Supply and Demand
Combine different parcels of land
Look at an existing property differently
Change the zoning of the property
1. Hig hest and Best Use
ACADEMY
~~i
The followin g is a Jist of principle s your app raiser wiJl be familiar with. They will affect the value
of your property.
2. How
TO MAKE
A
24
MONTHS
Internet sources
Title companies
:Monthly or yearly on-line service
How to locate the comparable sales:
Most common by far for single-family residence
3. Market Data Approach or Comparable Sales Approach
- The
orris Group 20 13
Example: A property nets $20,000 annually. The cap rate for the area is 8% (shown as .08); the
value of the property would be $250,000. (D on't ge t hung up on this. You will never use it when
buying single-family homes.)
Uses the formula: net income divided by cap rate equals present value.
D etermines a capitalization rate (the rate of return an investor demands before they will purchase
an income property in the area.)
Determines the cost of owning the property and subtracts from the gross rents to determine a net
figure
Determines the income the property will produce
2. Income Approach
The result is the present value of the property
Subtracts accrued depreciation
Determines what a similar property would cost new
1. Cost Approach
There are three ways in which properties are evaluated:
How
1('
TO DETERMINE THE VALUE OF THE PR OPERTY
The Norris
( ; 1"<>lI l'
20 13
Remember
Each of these items affec ts the final value of the property. Make sure you are comparing very similar
property when you determine value. If square footage is the same but the age is 20 years different, it's no t a
good comparable sale. If the age is the same but the hou se is twice as large, it's not a good comparable sale.
If the house is the same size, same age, but in a very different area, it's not a comparable sale. Keep look ing
for very similar properties before you attach a value to a piece of propert y. Also check out what is for sale in
the area. Make sure there are no auctions planned that will have a negative impact on the price you 'will get
for your property. If you have a doubt about the value of a property, have an appraiser do the evaluation for
you. It could be much less expensive in the long run!
How information is compiled and adjustments are made:

1. Area and address of property
2. Price per square foot
3. Data source
4. Date of
5. Location
6. Fee or lease land
7. Site size
8. View
9. D esign and appeal
10. Quality of construction
11.\.ge
12. Condition
13. Room count
14. Living area
15. Basement
16. Functional utility
17. Heating and cooling
18. Energy efficient items
19. G arage/carport
20. Porch, patio, deck
21. Fireplace
22. Fence
23 . Pool, spa
24. Other: remodel etc.
25. Total adjustments
26. Adjusted sales price
As an investor you are concerned m ostly with what affects value to your property. On the second page you
will notice vertical lines separating the middle of the page. Thi s is where value is determined.
First, take a good look at all of the little spaces for information . Now you know why an appraisal costs a
few hundred dollars. Those few minutes the appra iser spends at the property pale in comparison to the
time spe nt compiling the informat ion for thi s form. One of the reasons I took the time to become an
appra iser was to have a better idea of what they do and how they think.
The Appraisal Form
2. How
24
U nI form R eSId en f la IAlppralsa IRepo rt
File"
MONTHS
NOighbomood Descnptlon
o
0
0
0
lr.creas"'9
Shortage
Under 3mills
3-<3 mills
Ove< 6 mDls
o Stable o Declining
o In Balance 0 Over Supply
Onu-Unn Housing Tnnds
Jy.rs)
No If No, describe
Present land Usa '10

One-Unit
%
2-4 Un it
%
Multi-Family
%
CommercIal
%
Other
%
No
Foundation
o None
o Stairs
o Soullle
o Healed
Exterior Description
Evidence of 0 Inlestallon
Dampn ess 0 Selllement
o
o
Siorm Sash/lnsuJaled
o
Screens
Heating 0 FWA I0 HWBB I0 Radianl Amenities
I Fuel
o Preplacels) #
o OUl6r
o Palio/Deck
CooBng 0 Cenlral Air Condl\loning
o Individual I OOlher
o Pool
Foundation Walls
Exlenor W,IIs
Roof Surtace
Gutters &Downspouts
WindOW Type
o Woodslove(s) #
o Fence
o Porch
o Other
Bedrooms
Bath(s)
--
Does the p'operty generally conform to Ihe n.,ghbornood [functional u\llily. slyle. condliio n. use, COnSIlUC\lOn, elc.)?
Ve s
Yes
No If Yes, descnbe
No II No, descnbe
Square Feel of Gross Uving Area Above Grade
Are th ere any phYSICal defic.mcies Of adv8fS e condilions thai affeclllJe IIvabll.ty, $<lundness , or slruclural Inlegnty of the property?
Descnbe Ihe condilion ollhe prope~y (Inc!udng noedea repaws. delenorallon. renovauons. remodeling. elc.)
Finished area above grade contaIns:

Rooms
Addllional !ealures (spedal energy efficienl Items, elc.)
materialslcond~ion
(0 The No cris Group 2013
o None
o Driveway # 01 Cars
Driveway Surtace
o Garaga # of Cars
o Carport # 01 CaIS
o Bulli-in
DAti.
O Det.
Car Siorage
Floors
Walls
TrirniFinish
Salh Floor
Balh Wainscot
materialslcondition Interior
; Appliances oRefrigeralor ORange/Oven DDishwasher DDisposal OMicrowave OWasherlDryer OOlher (descnbe)
o
o
Altic
DropSlair
Floor
o FiniShed
VearB UlIl
Effechve Age (Y rs)
Urlis 0 One 0 One wllh ACf:2Ssory Und

Concrele Slab 0 Crawl Space
o Full Basement 0 Partial Basemenl
# 01 Stones
sq IL
TYP!' 0 Det. 0 AN 0 S-DetiEnd Unrt Basemenl Area
%
ExISti"g 0 ProI)osed 0 Under Coos!. Basemenl Finish
Design [Slyle)
OutSide Enlry/EXJI
Sump Pump
General Description
Public Other (describe)

Offsite Improvements-Type
Utilities
Public Other (describe)
Public Private
Waler
Slreet
Eleclncily
0
0
0
0
0
0
Sanilary Sewer
Alley
Gas
0
0
0
0
0
0
FEMA Map n
FEMA Special FIOcd Hazard Area D Yes oNo FEMA Flood Zone
FEM A Map Date
Are !he uUilies and offsll e improvements Iyplcal lor the markel area? 0 Yes 0 No If No. descnbe
AIe ther. a"Ladversa Slie conditions or exlernal fa clors (easefl1(!nts encroachments, env ironmental conditions, land uses. etc.)? 0 Yes 0 No If Yes. descnbe
o Ves
View
Low
High
pred_
$ (000)
OneUnit Housing
PRICE
AGE
Shape
Dimensions
Area
Specific Zoning Classification
Zoning Descnpllon
Zoning GompRance 0 Legal 0 Legal Nonconforming (Grandlathe<ed Use) 0 No Zoning 0 Illegal (describe)
Is Ihe hiohesl and besl use of the sullieCl property as IllljIfOved (or as proposed per plans and speclficatioros) Ihe presenl use?
Market Gondllions lincl udingsu2por1 for the above conclusions)
o
o
Neighborltood Characteristics
Localion 0 Urban
Suburban 0 Rural
PropertyVaJues
BUI:t-Up_ 0 Over 75% 0 25-75%
Undef25% DemandJSuppty
OSlabie
Slow
Markellng Time
GrowItl O Rlipid
Neighborhood Boundaries
Note: Race and the racial composition of the neighborhood are not appraisal factors.
Conlracl Pnce $
Dale 01 Contracl
Is the property seller lhe owner of publICJOCOrd? O Ves O No Dala Source(s)
Is there any financial assislance (loan charges, sale concesSions, gift or downpaymenl aSSI slance, etc ) to be paid by any party on behaif 01 the borrower" O Ves
If Ves, report th e lotsl dollar amounl and describe Ihe ilems 10 be paid.
10 did 0 did nol analyze Ihe conlracllor sale for Ih e sublecl purchase Iransaclion . Explain Ihe results ollhe analysis of Ihe contracl lor sale or why Ih e analysis was nol
pertormed.
City
State
Zip Code
Property Address
Cou nly
Borrower
Owner of Pu blic Reoord
Legal Descnptlon
Tax Year
R.E. Taxes $
Assessor's Parcel #
Census Tract
Map Refe rence
Neighborhood Name
Occupanl 0 Owner 0 Tenant 0 Vacanl
Sp<)Clal Assessmenls S
O PUD
HOAS
per year
permonlh
Property Righls Appraised 0 Fee Simple 0 Leasehold 0 Other (describe)
Assignmenl Type 0 Purchase Transaction 0 Re finance Transaction 0 Other (describe)
Lender/Client
Address
Is Ihe sUDlecl property cuITenliy offered for sale or has II been offered lor sale IJ1 the twelve mon ths prior 10 Ihe effective dale of this appraisal? OVes D Na
Report data soulce(s) used o"enng poce(s), and da lels).
TO MAKE
The purpose of Ihis summary appraisal report is 10 provide Ihe lender/clienl wllh an accurale, and adequalely supported, opinion of Ihe markel value of Ihe subjecl property.
How
"d
" IA
IR
----
NetAdI
GrossAdI
I D- O-
s
%
% S
Income Approach (if devefoped) $
Q T he N o rri s Group 2013
lI&fl N;
This apprrusal is made 0 -as Is", 0 subjecllo comptellon per plans and speCificahons on the basis of a hypothetical COIldrtion thal lhe Imp.-ovemenls have be!!n
compleled, 0 subjecllo ihe 101101'1109 repairs or alleratlons on !he basis of a hypotheti cal con d,llon !hallhe repairs or alteralions have be.n completed, or 0 sub,ect to the
followin!J requbed inspection based on lhe extraordmary assumption ihalihe condition or deuciency does not r"Guire aJleralion or repair:
Cost Approach (if devefoped) $
Based on a complete visual inspection of the interior and exterior areas of the subject property, defined scope of work, statement of assumptions and limiting
conditions, and appraiser's certification , my (our) opinion of the market value, as defined, of the real property that is the subject of this report is
$
as of
, which is the date of inspection and the effeclive date of this appraisal.
Indicated Value by Sales CQmpalison Approach S

, Indicated V, lue by: Safes Comparison Approach $
Summmy of Sales Companson Approach
Data soorce/s)
Report iIle results of Ihe res.IlIch and analysis of the prior sale or transfer hislory of the subject property and comparable sales (report additIOnal prior sales on page 3) ,
COMPARABLE SALE # 1
COMPARABLE SALE # 2
COMPARABLE SALE # 3
ITEM
SUBJECT
Dale of Prior Salem ansfer
Price 01Prior Safll/Transfer
Data SOUlce{S)
Effeclive Date of Data Soorce{s)
AnalySIS 01pnor sale or transfer hIstory 01 the subjed property and comparable safes
My research 0 did 0 did not reveal any prior salos or transf... of the comparable sales lor lhe year poor 10 Ihe dale of sale of tile comparable sale.
DalaSOO~S)
'My research 0 dId 0 did not re'leal any prior sales or translers 01!he subjecl property for !he !hree years pnor 10 U'" eHeellve dala 01this appra".1
- 0 ' ONel Ad)ustmenl (TolaI)

S
D O - S
, Adjustoo Sale PrlCB
Net Adj .
Nat Ad)
%
%
01Comparables
Gro ss Adj.
Gross Adj.
%S
%S
: 10 did 0 did nol research the sale or transier historl of the subjeCi property and comparable sales, II nol, explain
PordliPaliolDeck
G aragel~
Eoorgy EIlicienlltams
Proximity 10 SubjeCt
$
Sale Price
S
IS
IS
sq_ft ,
Sale Price/Gross LN Area S
sqll
S
sqft S
S
sq /I. I
Data Source(s)
VerillcaUon Source(s)
VALUE ADJUSTMENTS
DESCRJPTION
DESCRIPTION
+(-) SAdjUStment
DESCRtPTION
+( -) $ Adjustment
DESCRIPTION
.(-) S Adluslmenl
Sa'e or Frnanang
ConoesSIOns
Date of Saleflime
location
Leasehold-ifee Su!'eic
Stie
!
Vll]w
I
Design (Style)
Quailly of Construcl,on
Actual Age
-IConddlor.
Above Grade
TO(1I I Bdm. I BsIi"<I TcIEj IBtlnns. IBah
Tola _IS"""
TcIEj Btl"'" Balls
Room Count
I
sq _n
Gross living Area
S<j;1I
s:I. ft
~
Basement & FInished
Rooms Below Grad.
Funchonal Ublity
I
HeatingiCooling
I
--
10 S
COMPARABLE SALE # 3
10
TO DETERMINE THE VALU E O F THE P RO PE RTY
There are
comparable propertJes cuITenUy offe<ed lor sale In the stJbject neighbolhood I'8tlging In price from S
There are
comparable sales In the S1Jb,ect nelghborllOod ~11l1ln the past Iwelve months ral19"'g In sale price from $
FEATURE
COMPARABLE SAlE # 2
COM PARABLE SALE d 1
SUBJECT
Address
Unif,
2. How
A
24
COST APPROACH TO VALUE (not required by Fannie Mae)
U mform ReSI en f la IA~pralsa IR epo rt
ESTIMATED D REPRODUCTI ON OR D REP LACEMENT COST NEW

Source of cosl dala
Oualily raling from cosl se rvi ce
Effective date of cost data
Comments 011 Cosl Approach (grcss living are a caicufallons . aepr""","on, etc.)
Years Indicaled Value By Cosl Approach ..
I
I
Garage/Carport
Sq. FI. @S
Tolal Estimale 01Cosl-New
Less
PhYSICal Functional
Deprecialion
Depreciated Cosl of Improvem enls .. .
As-IS Value of Sile Improvemenls."
Indicaled Value by Income Approach
Descnbe common elements and recreational fac ililies
Are Ihe common elements leased to cr by lhe Homeowners Associallon? D y", DNa II Yes. describe Iroe renlal terms and oplions.
Is fhe develope,thu.lder In conlrol of Ihe Homeowne rs Associa lion (HOA)? DYes D Na Unil lype(s) D Delached DAltached
Provide Ihe followillg informaliOl1 lor PU Ds ONLY il the developer/buildor Is mcontrol 01 iI1c HOAand tile subject property ISan allacl1ed dwclJlI1g UOIL
Legal nama 01 pro,ecl
Total number of unlis
TOl al number 01 units sold
TOlal numbel' olp_hases
Data source(s)
TOlal number of uoils renled
Tolal number 01~nils fo< ""Ie
Was lhe projecl cre aled ~tile conversioll of an exisling bullding(s) inlo a PUD? D Yes D No II Yes, date 01 conveO;lOn
: Does Ihe Prolecl conlain any mulli-dwenlng units? DVes D No Data source(s)
Are 1M unl lS, common elements, and recreat ion f'aCHltJeS complete? DYes D No If No, describe the Sla lus of completion
PROJECT INFORMATION FOR PUDs (If applicable)
= $
. .... =$
=$(
.. .. =$
..... =$
...... .. - S
..._.. ........ ..., .. =$
.. ........... ......... ..... = $

.............. ... ... $
_...._..... " ..... =$
File #
MONTHS
IExlernal
I
OPINION OF SITE VALU E ..

... .. " ...
Dwelling
Sq. FI. @S
Sq. ,I @$
INCOME APPROACH TO VALUE (not required by Fannie Mae)

Es timated Monlhly Mal1<el Rem S
X Gross Re nt Mulllplier
Summary of Inr.ome Approach (Including suPPort for m<ll1<et renl and GRM)
---
Esbmaled Rema'nlng EconomIC Life IHUD all(] VA olllyl
TO MAKE
Provide adequate Informallon fo r the tenaerlclient to replicate tile below cosl r'!lures and calculations .
Support lor the "!'inion 01site va lu (summary of comparable land sales or other malhOO. for eslllnaims site .<llue )
How
ri:; The' Norris Group 2013
!['J
T he Norris Croup 2013
_MD E
We do not want to put the property down, just to make the seller aware we are noticing needed
repalfs
If you see stains on the ceiling, ask if the roof has been replaced, etc.
Ask appropriate questions as you go through the property
Ask the owner to show you the home prior to sitting down and discu ssing price
4. If the home is not vacant, it is easy to miss necessary repairs by being distracted. To avoid this:
Rememb er, you are not going to live here
Don't add features to the house that won't return a higher price
D on't over improve the property for the area
3. Some key things to keep in mind
All of the above factors playa part j n what I will pay for a property!
Will the repairs be safe when left alone at night
How long will the repairs take
Can the repairs be done with handyman types or is a contractor needed
If this is a simple rehab or a major project
2. As you go through the property for the first time, ask yourself
Get a general feel for the safety of the area
Be aware of the number of vacant houses (you m ay buy this one instead)
Make a list of houses for sale
You are buying an area as well as a home
This is what your buyer will do
1. As you approach the area, drive through the neighborhood
Determining Repair Costs
TO MAKE
A
24
MONTHS
Always have more than one source for each trade
The busier you keep them, the higher priority you are
Demand service and performance, not cheap prices
Let them make money
Pay everyone promptly
Get referrals from people in the buying business, Realtors and investment clubs
6. How to build a team that works well
Whomever you choose, don't do the work yourself!
rQ The Norris (;roup 201.'
Using the handyman type repair people
Advantages
They are cheaper
They can end up as your employee and have flexibility of going anywhere you need them at
a moment's notice
Disadvantages
No insurance
They flake out a lot
They are less experienced
Usually there are more problems when the buyers move in
When they go on vacation, repairs stop
If they get hurt, you pay
Using contractors with licenses and insurance

Advantages
They are usually better and faster
They usually don't need money up front for materials
They have a team in place that you get to adopt
They minimize the risk of a lawsuit because they are insured
Since they handle the entire job, this frees you up to find deals
Disadvantages
They usually cost more
They can be as inconsistent as any other construction worker
5. Who's going to repair the property?
The goal is to get a pretty accurate figure in our head of the repairs prior to sitting down with the
seller. This takes practice, so practice without pressure a few times. There are plenty of houses for
sale!
ACADEMY
How
Texture: walls and ceilings

Interior paint: Trim paint should be a different color than walls
Drywall repairs
Interior doors: Six panel colonial hollow core door
Door locks: Use handle door locks instead of knob
Trim and molding
Front door: Glass window and burgundy
Kitchen cabinets: Price out at Home Depot by the foot
Replace kitchen hardware
Tile kitchen counter tops
Dishwasher, garbage disposal a must
New kitchen sink and faucet
Interior Repairs continued:
Carpet: Use rebond pad or better... Carpet per price range of home
Linoleum: Be careful of the sub-floor work
Bathroom: New look very important
Replace toilets, sinks, faucets, medicine cabinets, tubs, and vanities if they don't look very good
Tile in shower area as opposed to tub surrounds
Re-shoot tubs if hard to take out with epoxy
Hot water heater: Must be earthquake strapped
Re-plumb entire house: tell-tale signs: brown water and no pressure
Heating system: If area supports it, install central heat and air
Wall heaters: Single or double, they're not cheap!
Floor heaters: Probably aren't vented properly, replace
Wall A IC units or evaporator coolers
Electrical fixtures, fan lights, plug, switch, and plate
Main electrical panel: 100 amp or better, no fuse boxes
Be careful about illegal wiring
Window replacement: Not expensive compared with the look you get
Glass replacement
SEEING A PR OPERTY FOR THE FIRST TIME
Interior repairs:
T he N orris (; roup 2013
7.
3.
Wallpaper borders: Bathrooms and kitchens
First, check for electrical meter

Roof: If it will prevent a quick sale, replace it
If the roof is shake, get a quote; it isn't cheap!
Take off old roof before installing new one

Make sure hauling off old roof is part of the bid
Type of roof:
Stucco: Color coat or fog the exterior
Exterior paint: Semi-gloss trim
Garage door: replace \-vith roll-up if needed
Termite damage: Inspection is cheaper than a big mistake
Landscape: Trim, flowers, auto-sprinklers
Fences: Block, wood, and chain link
Grading problems
Hauling costs and when to have it done
Driveway: repair or replace
Hou se numbers
Mailbox
General cleanup
8. Exterior Repairs:
Mini blinds: every window
Screens:
TO MAKE
How
24
MONTHS
((.)
Th ~
orris Group 2013
Pbone
Sq. Ft. _ _x_ _ Trim Only _ _ _ __

Illegal Wiring?_ _ _ _ __
Sprinkler s~
_ _ _ _ _ _ _ _ _ __
Front _ _ _ Back ___ Auto_ _ _ __
:\ecd ed~
Type ____ ______
Condition _ _ _ _ __ _
'0 The N orri s (; roLlI' 2013
Grand Total
NLsc._ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Driveway ________________________
Estimate of exterior landscape cost? _____________
Lawn Condition? ____________________
Landscape:
Pool ___ Spa___ Repairs
Linear Foot of Fence to add
Fence Type:
Exterior: Stucco or Siding: Condition ____________
Grading Problems_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Structural Problems ____________ _ __ _ _ ___
Any information on Septic? ________________
Septicor Sewer? _____________________
T ermite Damage_ __ ________ _________
Roofing Work _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Ex terior Hauling ____________________
Electrical Meter There?
Electrical: Main Amp and Condo _ _ _ _ _ _ _ _ _ _ _ _ __
Paint Exterior
Need Door? _ _ _ _ __
Sellable?
Lot Size
Garage
Dangerous?
Broker/ Agent
Sq.Ft.
City
Source
Replace? _ _ _ _ _ __
Bath
Thomas Guide
Roof type
Exterior Repairs:
Graffiti?
Describe Area
Li sting Price
Bedrooms
A ddress
Property Number
Age
Property Inspection Form
\Xieb Portal Download
SEEING A PROPERTY FOR THE FIRST TIME
TheNoRRlsGROUI'
3.
TO MAKE
Repair ~
_ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ __
x _ __
Re s tain ~
# ___
Repai nt ~ _ _ _ _ _ _ _ _ __
Faucet s~
_ _ _ _
Needed~
_ __
Dam age~
_ _ _ _ _ __ _ _
j'ylirrors~ _ _ _ _ _ _ _ __
Heaters _ _ _ _ _ _ _ _ _ _ _ __
eeded _ _ _ _ _ _ _ _ _ __
Total Repair Estimate
MONTHS
- - - -- - - -
= - -----
= -------
=- - - - - -
= - -- - - - - -
=- - - - - --
= -------
= - ------
= --------
24
Time Required To Complete Repairs: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Repair For Ex terior
Repair T otal For Interior
Mise. Interior _ _ _ _ _ _ _ _ __ _ _ _ _ _ __ _ __
Mini bLinds: _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ __
Scree ns: # ____ _________________
Sliders: # Gla ss _ _ Complete Sliders # _ _ _ _ _ _ _ __
Frames # _________ _ __
_ _ Parts
_ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ __
Co nditi oning~
N eed ed~
Windows : # Glass
Air
Wo rk
Thermostats Needed _ _ Heating System Type? _ _ _ _ _ __
E lectrical Wiring N eeded _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Bath Fans N eeded
Electrical Fixtures Needed: _ _ _ Fan Lights _ _ _ _ _ _ __
Elee. Or Gas? _ _ _ _ _ __
___ Tile
ccded ~
H ot Water H eater N eeded?
Shower D oors
Medicine Cabinets 1
Reglaze Anything? _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Plumbing [ ceded: Toilets _ _ _ Bath Vanities and Sinks _ _ __
Sub Floo r Work Ne eded? _ _ _ _ _ _ _ _ _ _ _ _ _ __
Ca rpet and Linoleum Sq. Ft. _ _ _ / 9 = ___ yd. x _ _ __ _
Replace Kitchen Sink? _ _ _
Garbage Di sposal _ _ _ Microwave _ _ _ Ve nt Hood _ _ _
App liances N eeded: Dishwasher _ _ _ Stove _ _ __
Counter T op: Tile _ _ Other _ _ Rep l ace~ _ _ Ft. _ _ __
Door Fronts Missing?
Kitchen Cabinets
Ki tchen Cabinets Replace? _ _ _ Li near F _ _ _ x _ __
Exterior D oors Replace #
Interior D oo rs Replace # ___ x _ __
Texture Interior?_ _ _ _ _ _ _ _ Ceilings? _ _ _ _ _ __
Drywa.ll
Paint Interior _ _ Sq. Ft. _ _ x _ _ Wall Paper?_ _ _ __
Interior Repairs
TheNoRRlsGROUP
Web Portal Download
How
, The Norris Group 201 3
Fast close
"As is" purchase
Money to allow seller to take advantage of opportunity

Money to provide freedom
The N orris Group 2013
Money to solve seller's problems
3. Cash offers provide the following benefits:
These are the basic "features" of our business. What are the benefits of each feature?
Cash
2. From the perspective of the seller, what do we have to offer?
1. What business are we in?
1I."i E
TO MAKE
A
M ILLION DOLLARS MAXIMIZING THE NEXT
24
MONTHS
A fast close could allow the seller to get
A fast close could allow all the family to move together

A fast close minimizes the risk associated with ownership, like vandalism
A fast close minimizes holding costs
A fast close may make the purchase of another home possible where a normal closing would not
A. fast close can allow the seller to take advantage of a business opportunity
A fast close is easier for those who are dealing with health issues
A fast close gets people away from their bad memories quicker and they can move on to a more
positive future
fc) The N orris Group 2013
A fast close allows the seller to move to the area of their choice right away
a new job in a more timely manner
A fast closing takes away the problem causing their discomfort. That could be a relative staying at
the property, bad tenant, lousy neighbor, divorce, etc.
to
A fast closing locks in a known sale price, less time for surprises and market fluctuations
4. Having a fast close provides the following benefits:
In some cases, the cash provides debt relief and saves a seller's credit from further damage
An all cash offer gives peace of mind. The seller can concentrate on the future instead of their
problems
An all cash offer doesn't have a financing contingency; it's a sure thing!
Nloney to remove stress
How
(jj
SELLING TO AN INVESTOR MAKE SENSE?
Emphasizing the problems they know will come up and solving them
Bringing up problems they haven't thought of and solving them too
The No rri s Croup 2013
Pointing out the benefits of our solution
Closing a seller requires:
6. Closing the owner, whether a private party or lender, demands that we know what the benefits
of our offer are.
Eliminates last minute "surprises" that can delay a closing or cause an escrow to fall out
Eliminates most inspections that cause delays and added costs
Eliminates potential law suits should the property be sold to an owner occupant and later have
problems
Eliminates the risk of dealing with contractors who do lousy work or don't finish what they start
ACADEMY
1'G
Eliminates the time commitment the seller would have in either supervising or doing the repairs
E liminates the cost of repairs
5. When the owner sells us a property "as is," these are the benefits:
4. D OES
If you had this problem, what would you do?
1:9 The No rri s G roup 2013
10. How would it feel to have all this behind you and have your property sold?
9. If it will make you feel better, I'll withdraw my offer.
IIMQl E
In addition to this one thing, is there any other reason standing in the way of an agreement?
8. Is that fair enough?
7.
6. By the way...
s.
4. Are you allowed to take care of this or do I need to see someone else?
3. Do you consider yourself an honest person or a good friend?
2. May I ask you a question?
1. What is the least you will take?
TO MAKE
A
24
MONTHS
21. Would it bother you if we did this deal and later you found out I lost a lot of money?
20. Are you the type of person who likes to create win/win situations?
~.
19. I'd let you sit on the fence if I thought that was in your best interest, but it rarely is. We have
agreed that. ..
18. Sometimes we put so much emphasis on sales price, we forget the most important number and
that's what you get to spend.
17. To be honest, I must have misread your motivation. I thought we would come to an agreement,
but I can see we're too far apart.
16. If I read you correctly, and I think I have, you're the type of person who puts their family ahead
of money. Would that be correct?
15. We could remain stalemated - I go home with my money - and you go home with your property.
But how is that in your best interest?
14. If your best friend were in a similar circumstance, is that the advice you would give to them?
13. Given the choice, would you?
12. Do you think someone who provides a service should make a profit?
11. If you were in the home buying business, could you make a profit paying that much for the
house?
A CADEMY
How
GRAB BAG OF HANDY ONE LINERS
(9 T hc Norrjs G roup 2013
Selling contributes to profits. Everything else contributes to costs
Selling is the art of persuasion to obtain agreement, not intimidation to obtain compliance
Intangibles give your sel lers an excuse to buy
Tangibles give your sellers a reason to sell
Answer logical objections with emotion and answer emotional objections with logic
The source of spectacular performance is commitment and preparation
The tou ghest sale is the best teacher
It is better to sell for a little less than you expected than try to ge t more th an you should
People buy what they want quicker th an what they need
Compliance is the building block of the sale, but commitment is the mortar that holds the sale
together and gives it durability
Flexible people do not get bent out of shape
Cynics don't listen. Establish credibility before your presentation of an offer
Objections are magnified by opposition and minimized by agreement
Perfect practice makes perfect
Miscellaneous words of wisdom taken from The Art and Science o/'Resort Sales written Ben Gay III and
Denni s McCann.
5.
i() The
1.
Remember, time is on your side. Relax, don't be in a hurry

Remember, you are in control; you have what they want
Remember, you do not need this particular property unless it fits your guidelines
Remember the benefits you offer
Think in advance of possible seller objections
Keep your emotions in check
Never offer unless you can perform
Remember, expectations are usually realized
Stop any time the seller says yes
Norris Group 2013
Always spend your time in front of pre-qualified motivated sellers
Some important general principles to keep in mind
Now the fun begins and the opportunity to make the big money is here. The ability to successfully call
for a decision separates tbe "baves" and the "have nots" in this business. I've had many close calls. Of
all the homes I almost bought, I made the same amount of money as the ones I've never even looked at:
NOTHING. Of the ones that I barely bought, I earned as much as the ones that I easily bought. In this
business, it is all or nothing.
Pens for the seller

Calculator
Bring samples of happy customers who made similar decisions
Bring an auction catalog so they realize the competition
Make sure all decision makers will be present
Know the approximate value of the property
Know your maximum offer
Remember why you buy houses: profit and cash flow
Think about who you are meeting; dress, talk, and act appropriately
Why they are selling

Where they are going
How long they have
What they want for their property
How much they O\ve
What they think the property is worth
3. Process: Begins with the first phone contact. We need to know...
Check book for deposit (given to escrow only)
24
Disclosure forms
Bring offer forms; partially filled out if possible
TO MAKE
2. Preparation
How
MONTHS
Th e Norris Group 2013
,~ )
NEGOTIATING WITH THE SELLER
t"l O
put-dm,vns of property or people
'n,.: No n';, G ro\l p 20 1.l
Remember the universal language of a smile
Call them by Mr. and Mrs.
Find mutual interests and make a statement like, "I see you're interested in bowling." Once they
follow your lead, let them talk. Don't burn the bridge you just built by then talking about your
bowling average. No one cares about your bowling average! The purpose is to let the seller feel
comfortable with you and make a connection.
5. Meeting the owner; building a bridge
Once we have a chance (meaning the property qualifies because of equity and the seller qualifies because of
motivation), we go see the house. Until this time, we don't waste our time. You will observe, if you follow
this pre-qualifying procedure, that you will save valuable time and buy more houses.
The possibility of a purchase
Their equity
Their alternatives
Their needs
Their motivation
4. By asking these questions, you determine ...
Is the current financing assumable
Have they had any offers
How long have they owned the property
Loan on property original loan or refi
Listed or unlisted
How long it has been for sale and at what price
6.
A
MILLION DOLLARS M AXIMIZING THE N EXT
Make a list of repairs as you walk through
TO MAKE
Seller
Continue with something like this:
Why bring up the negative?
Seller
Continue with something li ke this:
Seller
MO NT HS
Investor
24
r.~
The No rris G ruup 2013
"Before we discuss whal 1 can do for you there may

be other opti ns that you should consider. Why
don't we work together and see if we can come up
with the best solution for you . Does that sound fair
to yo u?"
Investor
"As )'OLl probably guessed, the price 1 will be able

to pay for the property is less th an you have been
as king. Howe er, in many cases other people juSt
like you have agreed that the benefits of my offer
outweighed the lower price."
Investor
find yourself in a position where you have a

properry that just won t s 11 and you are look..ing for
some options, is th 'lt right, Mr. and Mrs. Seller?"
, YOLl
Investor
"Why don't we h ave a seat in the kitchen and go 0 er

you r situation. Mrs. Seller, could I bother yo u for a
glass of water? Mr. Seller, it would be helpful if you
could get one of your lastloan statement'. Than l'
you."
Review with them what they have told you to this point.
Seller
After the sellers feel comfortable, take control ge n tly.
How
The low cost of high trust
Gets rid of objections now instead of later
A s they disagree with the option, cross it off
When the list is all crossed out...
Investor
For immediate profit
The Norris Croup 2013
Seller
First, find out if the property makes sense to hold
For cash flow
"\X/hat was it you wanted to come out with at the end

of escrow? Let's see if your property qualifies to be
bough t and held as a rental for cash flow."
Investor
N;
A CADEMY
rm
Start by explaining the property buying business; property buyers buy for only two reasons:
When they say yes, you have just received permission to go ahead and make the offer.
Seller
WITH THE SELLER
"Ln other words, you bave decided to take a look

at what ::tn all cash buyer will offer on a quick
transaction?"
As you suggest solutions, write them down
If one works, OK, you just helped someone
Go over every solution
Helps the people
Why do this?
6. N EGOTIATING
TO MAKE
A
l. can see where that wouldn't make sen se.
MONTHS
Investor
24
The 'Iorris Group 2013
"S , our only chance is an all cash offer. Would you

like to see what an investor's numbers look like?"
"Would you invest $,________ to lose

$
a month and pick up the
hassle of a renter?"
6. The reverse Net Offer form. How far apart are we?
0,
Seller
(Show the return on investment form here - just the top portion.)
ACADEMY
How
T he
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Amount you want to net

Cost of purchase escrow
Cost of purchase title report
Cost of termite report
Cost of transfer tax
Cost of insurance
Cost of repairs
Cost of holcling property 4 months
Cost of selling broker 6%
Cost of ne\v loan processing
Cost of points on new loan
Cost of loan origination fee
Cost of new title insurance
Cost of tax service
Cost of credit report
Cost of appraisal
Cost of home warranty policy
Cost of transfer tax to seU
Cost of escrow to sell
Cost of re-conveyance
Cost of advertising
Minimum eguity cushion
Total price your property needs to be worth:
Today's value of property:
The amount we are off:
N OrrIS
Group 2013
"For these two numbers to come out even, the figure you would be able to receive would have to change
considerably. How do you feet about that?"
Amount owed on property
REVERSE NET OFFER FORM
TheNoRRIsGROUI'
6.
N;
TO MAKE
A
24
MONTHS
"Great, but we can't take that little for the

property."
Seller
to
move
Why do you need that much?"
i&,")
The
o u is G roup 201.'\
" \\lbat is the least yO Ll w i II take for the home?"
"So, our on ly chance is an all cash offer. Would you

like to see w hat an investor's numbers look like?"
You r biggest problem will be solved."
You will have the pressure of th is house off

your back
You and your fami ly w ill be able

togelher
Investor
" .M L and Mrs. Seller w ith my o ffer:
Remember the list of benefits? N ow is the time to p erso nalize them . Make the seller the own r of
t he benefits.
You have just asked the question, "How do yo u feel about that?" Let the seller respond. Do not interrupt.
Make notes as to their objections. L isten and be understanding, but not persuaded. You have two choices:
raise your offer or sell the benefits of yo ur offer.
Do you fe el any threat coming from the seller when the offer is presented in this manner?
Where is the problem? \,(lith the property and the market place.
What price is being offered? N one, we are dealing with how far apart we are.
7. Why is this an effective method of buying?
How
to The Nor ri s Group 2013
Seller
Investor
"You know m any people don't realize just how

well they h ave done on th eir properties: you, fo r
instance."
"1 wish th e marketplace were good enough for me

to pay you m.ore. But here are the facts: Every day,
I can attend one of these. (Trustee saJe List) Tlus is
your competition. The truth is a cash buyer has a lot
of options in this market. It's a lousy time to have
to sell a property, It's not you r fault or my fault. But
let's be realistic. If you were a buyer in this market
with a lim..ited amount to spend, wouldn't: you wait
for the best buys?"
"The only way an investor can buy your property

is to buy it with enough margin to safely sell the
property for a profit." Do you fe el that having a safe
margin is unfair?
making % on your money each and e\'ery year? Do

you consider that an acceptable rate of return on
your im'estment? Congratulations! You've just sold
your bouse. Should we close escrow in two weeks or
ten days?"
Investor
"Did you realize that by accepting my offer you were
"\Y/e covered the l,vo ways i nvesto ff> buy any property
anel we agreed that no investor will invest
$
to lose S_ _ a month. Js that right?
"We have agreed that aJ I of th e other options arc

unacceptable, didn't we?"
Show the return on investment form - second part here
Seller
After they give you the reasons say something like this:
6.
Seller
TO MAKE
" 'fe still can't do it!"
Seller
Silence and hand them a pen.
MONTHS
Investor
24
'~ The
. 'o rris G roup 20 11
"\'(,'eU, Mr. and Mrs. Seiler, I've tried my best. 1 was

ure your family would be packing omorrow."
Investor
"You see what my offer does is...

Offers you a way out of your situation.
Pays you all ca h .
Offers a quick closing.
Has no contingency.
Altows you to get on with y ur life.
!vrakcs a great return on your investment.
But best of all, with the money you receive,
you and your famil y can continue to njoy
the same exact lifestyle, only in the new
location of you r choice. You and your family
can r ceive all of these benefits by simply
approving my offer."
"Mr. and Mrs. Seller, may I ask you a question? re

the home where you will be moving to be more
exp nsive than in California? Is it possible that every
dollar you get from the sale of this house will grow
and buy more of a house where you arc going?"
" How high do you need?" (Smile when you say this!)
"Getting a 'Yr, return n your money is too low?"
MILLION D OLLARS MAXIMIZING THE NEXT
T hey might say: " Holt! on a minute . WI,; can'r sell

o u r house for eh a . It's craz}!"
How
"Bot tom line, what is the nu mber you fe el is fa ir for

both of us? We've both invested a lot of time. Let's
cooperate and get this dond"
OK?"
"Just to he sure we haven't missed anytbing, let's go

over the numbets once more and ge t this ovcr with,
"We've covered every base, discusseJ every solutio n."
"Do you really believe any othcr investor could pay

more? How?"
"Do you thi nk any other investor would have gone

over the options available to you the way I did?'
"Do you believe I've been honest with you ton ight?"
"May I ask yo u a questio n?"
"What do you plan to do?"

or
"What option on the l ist is starting to look good?"
Investor
l -ltc t-.:l orris c; roup 20 13
" We can't accept your offer, still to o low."
ilence.
Seller
Add up the new list. It should be getting close.
"\'(lhat is the least you will accept to get this owr

with tonight?"
"Pen, please."
"Congratulations, you and 1 are very close to an

agreement! 1 can purchase your propert\' tonight,
close escrow in one week , get you and you r family
safely moved together and net you S
at
close of escrow."
Investor
G o over the entire net sheet again. Give concessions by paying for services such as escrow, title, closing
costs, termite. Do not lower the equity cushion.
"Oh, we have another property buyer coming over

at eight tonight."
Seller
Pack up and prepare to leave. But before you go, ask this:
6.
TO MAKE
A
24
MONTHS
Seller
"If I agree to pay your pric of $

net,
can e 'crow be four days longer or can I have the
family dog...," anything to avoid just accepting his
last nct offer.
Investor
Pack up and let the offer simmer for a while

Try another close
III
) T he Norri s Group 20 1.\
If the answer to your last "\'\!hat's the least you will take ..." was no more movement, you have two choices:
Example:
If the seller lowers his price and it is within an acceptable range, counter with a minor concession and have
him accept the offer, not you. If you just hop on his last offer, the seller will back off and end up canceling
later. Let them be the one to accept.
How
'Q
This allows for a very speedy, inexpensive sale
lIilf,,.i'l'G
By buying with existing favorable financing in place, we set ourselves up to be selling a property
where the new buyer doesn't have to qualify for a new loan
T h. N o rris Group 21113
The purchase transaction can happen very quickly by nearly any investor
The property already has financing in place. We don't need to borrow money, pay for points or
appraisals.
It is likely the owners will have little equity, creating a very low down payment purchase for us
Probably will have extremely low interest rate fixed loans in place
2. Advantages of buying "subject to"
"Subject to" buying will dominate the transactions when you deal directly with the seller between
the years 2007-2010
When a person has been delinquent in making their payments, you can't assume their loan without
damaging your own credit. This is the basis of buying foreclosures "subject to"
Realize that when you "assume" someone's loan, your name and identity takes the place of the
original borrower
1. Do not attempt to buy "subject to" deals when brokers are involved
Buying "subject to" simply means you will take title to the property but the existing loans stay in the name
of the original borrower.
A
24
MONTHS
When selling the property, the new buyer doesn't have to be "approved" by standard
documentation. You approve or disapprove of the buyer
TO MAKE
( '\ 'fhe N orris Croup 2(11 .3
The seller could call the lender on the property and inform them of the transfer. This isn't very
helpful, so discourage that in advance!
\Vhen the sellers talk to their accountant, lawyers, Realtor or friend, they are likely to mislead into
thinking something wasn't done properly. Attempt to have them understand everything up front. It
saves a lot of grief later.
Sellers tend to develop "amnesia" in a few months when they get turned down for a loan on a new
home. They can't remember why you couldn't assume their loan and now are unhappy. This comes
under the heading of: "A service once rendered is rendered worthless."
Unless you make the risk: plain and in writing, you can expect a call from the seller should anything
go wrong
There are risks to the seller that won't go away for a long while
"i'lIany people don't understand the concept, so they think you are trying to pull a fast one!
The original borrower's name stays on the loan until the loan is paid off
3. The downside of buying "subject to"
Don't ignore properties that aren't in foreclosure. A lot of sellers will have a low equity position and could
be more motivated to move rather than have their loan assumed.
Because so many properties will be experiencing declining equity, you can wait to purchase nice
homes in nice areas using this method
Because of the low interest loans in place, it's possible to sell using carryback financing or a
wraparound mortgage to sell the property and create cash flow
\Xlhen selling the property, the house doesn't need to be appraised or inspected by anyone. We just
need a willing buyer
ACADEMY
How
SUBJECT
To
BUYING
The answer? Nothing. There were $45,0 00 in costs selling through a Re altor
T he No rri s Group 2013
36 ,3 19.62
8,750 .00
45,069.62
4,930.38
0.00
4,930.38
0.00
0.00
0.00
114.00
0.00
400.00
75.00
0.00
0.00
MISCELLANEOUS CHARGES
Tax/Insurance Proration
Prepayment Penalty
Survey
Zone Disclosure
Transaction Fee
Home Warranty
PesUlnspection
Sales Tax 0%
Miscellaneous
LOAN FEES
=Above Costs
Seller's Credit
Total Costs
Net Equity
2nd Trust Deed Amount 0%
Net Cash
75 .00
75.00
550.00
550.00
65 .00
RECORDING AND TRANSFER FEES

Reconveyance
Demand
Tax Stamps 1.10%
City Transfer 1.10%
Recording
1,311.00
100.00
1,669.00
50,000.00
15,000.00
15,000.00
1,335.62
Gross Equity
Listing Fee 3.00%
Selling Fee 3.00%
30 Days Interest Owed
TITLE CHARGES
Escrow Fee
Sub Escrow Fee
Title Insurance
500,000.00
450,000 .00
6.50
0.00
0.00
0.00
Sale Price
1st Trust Deed Balance
1st Trust Deed Interest
2nd Trust Deed Balance
2nd Trust Deed Interest
Other Liens
CONVENTIONAL LOAN
Seller's Net
Question: What will the seller net if this property was sold through a Realtor?
Property is in near perfect condition. The value is $500,000. The loan balance is $450,000 at 6%
nxed. The loan has 28 years remaining on a 30 year loan. The seller is $10,000 behind in payments.
Let's use an example and see where buying this property no longer makes sense.
4. Formulas for buying "subject to"
7.
N;
TO MAKE
A
24
MONTHS
t) Th"
orris C; tollP 2013
Don't expect a buyer in a downturn to put more than 20% down for even a very clean property in a good
area. It pays to be conservative when selling is tough.
When someone is in foreclosure, they usually get three months behind before the lender begins foreclosure.
It takes approximately four months to foreclose. That's at least seven payments behind in the last week of a
trustee sale. You've got to be sure that you can sell the property quickly before you layout that kind of cash.
When you change the financing from qualifying to non -gualifying, you eliminate 99% of all other
real estate for sale as competition
There's a lot of competition looking for that same buyer
The owner has very likely been trying to sell the home in the conventional way, meaning assume my
loan or qualify for a new loan
Question: Why can we seU this property when the owner cannot?
When buying "subject to," the key is to not bury yourself in the deal with too much of your own
money. If an owner is too far behind in payments, the deal may not work. You are sometimes better
off buying a "subject to" deal from an owner who is current but doesn't have the equity to hire a
Realtor.
Question: Would you pay $460,000 for the house? $470,OOO?
If the answer is definitely yes, you've just netted over $30,000 for placing yourself in the middle of a
seller who will net zero and a renter who normally can't buy!
Question: Can we sell this house for $500,000 requiring a 10% down payment with zero qualifying?
How
to
buy another bo use."
to The Norris Group 2013
" The bank will foreclose and ruin my credit."
"You might not make the payments and that will

hurt my credit."
"I won't be able
Seller
To
B UYING
Investor
SUBJECT
N;
Explain that this is a very remote possibility, at best.

L enders do have the right to call the loan due if a
transfer is done without the loan being assumed. In
all my years of experience, I have Iud one lender
actually start foreclosing on a property I had taken
"subject to." The lender eventually backed off, paid
the foreclosure fees themselves, and just allowed me
to make the monthly payments.
As a practical matter, you will be giving the seller

money in exchange for their equity. What sense
wou ld it make for you to give the seller thousands
of dollars and then not make the payments? If they
point out it's not you they are worried about, remind
them that the eventu al buyer will be putting up
an even larger down payment for the privilege of
buying thi s property. The bigger the down payment,
the less likely you will ever have a monthly payment
problem.
Have the seller wrap the existing loan with an all

inclusive trust deed. Make payments to a third party
collection company so both sides are protected. This
way the seller will always know the payments are
being made. Since you have made the seller a lender,
they have the right to foreclose if payments are not
made. The seller is now in a position to mitigate any
damage .
Most homeowners own one house. T hey can't

imagine how they can buy another one without
paying off the existing loan. The truth is, lenders do
it all the time. T he lender will see the existing loan
on the property you are buying. Once they are told
that the home has been sold, the new lender will ask
for a copy of the grant deed. In most cases, the debt
will be ignored and not ruin the seller's cha nces of
buying a new home. T he best proof of all is a letter
fro m a lender stating how this works .
5. Objections and responses to taking over a loan "subject to"
7.
TO MAKE
A
24
MONTHS
ever sign for this debt yourself. Have your trustee sign or, better yet, allow the new buyer to sign
the all inclusive deed of trust. This gets you out of the loop and places your buyer in direct contact
with the former owner whose credit is on the line l
Going back to the $500,000 house sale
Z('; The
orris Group 2011
If the answer is yes, then carry back an all inclusive deed when you sell the property. Remember, the
amount owed was $450,000 at 6%. \Xlhy not make the all inclusive deed of trust 8% and make 2% interest
on S450,000? Over a year that's $9,000. Over the 28 years remaining on the loan that's $9,000 times 28 =
$252,000. N ot bad!
Question: Is it possible that someone unable to quaHfy for standard financing would pay a 2%
premium in interest to go from renter to owner?
Increase your cash flow
This will give the seller some control of their own destiny. As a lender, they have the right to make
up arrearages to senior loans. Then, they can foreclose on the property themselves and protect their
credit.
If the seller hesitates to sell you the property "subject to", suggest he carry back an all inclusive deed
of trust or wraparound mortgage
You can use this document to protect the seller, increase your cash flmv, or both
6. All Inclusive Deed of Trust
How
r:J T he
LONG FORM
,',....
(Number and street)
"'
CA
(State)
(Zip)
92501
, as the Beneficiary.
)/
, California, referred to as:
-- -
PAGE ONE OF THREE -
FORM 450 -
c. the Beneficiary's charge for a statement regarding the secured obligations requested by or for Trustor;
and
d. the performance of each agreement conta ined in this Deed of Trust.
a. the indebtedness evidenced by a promissory note of same date executed by Trustor,

in the sum of $ 450,000.00
b. any additional sums and interest hereafter loaned by Benefi ciary to the then record Owner of the real
property, evidenced by a promissory note or notes, referencing this Deed of Trust as security for
payment;
For the purpose of securing payment of:
J\
1.3
County of Riverside
The real property in the City of ...:R..::i..:.:ve""r""s""id""e_--=-.,---_ _..,.....,._ __ _ _ _ __ _ _ _ __ _ _ _ __ _
TOGETHER WITH the rents, issues and profits of the real property, subject to the provisions of 3.4,
herein to collect and apply the rents , issues and profits,
, 20_1_3_ _,
, as the Trustor,
, a California corporation, as the Trustee, and
(City)
Riverside
"
ACADEMY
N;
1.2
1.1
BUYING
Phone _ _ _ _ _ _ _ _ _-----'~-_=_=_---Email
day of May
....
To
SPACE ABOVE THIS LINE FOR RECORDER'S USE
Securing a Promissory Note
SUBJECT
Trustor hereby IRREVOCABLY GRANTS TO TRUSTEE IN TRUST, WITH POWER OF SALE,
Nurris Group 2013
1.
You or any entity you have an interest in
Chicago Title Company
whose address is 1234 Orange Ave
between Your Buyer
This Deed of Trust, made this 27
Prepared by: Agent

Broker
City &
State
Street
Address
Name
AND WHEN RECORDED MAIL TO
RECORDING REQUESTED BY
7.
- -
TO MAKE
PAGE 7WO OF THREE FORM 450 -
TAXES AND SENIOR ENCUMBRANCES - To pay at least 10 days before delinquency all taxes and
assessments affecting the property , including water stock assessments when due , all encumbrances,
charges and liens, with interest, on the property which are or appear to be senior to this Deed of Trust;
and all expenses of this Deed of Trust.
2.4
Trustor to immediately pay all sums expended by Beneficiary or Trustee provided for in this Deed of Trust,
with interest from date of expenditure at the same rate as the principal debt hereby secured .
In exercising the power of this provision, Beneficiary or Trustee may incur necessary expenses , including
reasonable attorney fees .
c. pay, purchase , contest or settle any encumbrance, charge or lien that appears to be senior to this Deed
of Trust.
a. make or do the same to the extent either deems necessary to protect the security, Beneficiary or Trustee
being authorized to enter upon the property to do so;
b. appear in or commence any action or proceeding purporting to affect the security, or the rights or powers
of Beneficiary or Trustee ;
2.5 ACTS AND ADVANCES TO PROTECT THE SECURITY - If Trustor fails to make any payment or
to perform any act provided for in this Deed of Trust, then f?eneficiary or Trustee may, without obligation to
do so , and with or without notice or demand upon Trustor, and without releasing Tru stor from any obligation
under this Deed of Trust:
ATTORNEY FEES - To appear in and defend any action or proceeding purporting to affect the security,
or the rights and powers of Beneficiary or Trustee; and to pay all costs and expenses, including cost of
evidencing title and attorney fees in a reasonable sum, in any such action or proceeding in which
Beneficiary or Trustee may appear.
2.3
In the event of loss, Trustor shall give prompt notice to the insurance carrier and BenefiCiary . Beneficiary
may make proof of loss if not made promptly by Trustor. Beneficiary may place the proceeds in
a non-interest bearing account to be used for the cost of reconstruction of the damaged improvements.
If Trustor fails to reconstruct, Beneficiary may receive and apply the loan proceeds to the principal debt
hereby secured, without a showing of impairment.
PAGE 7WO OF THREE -
FORM 450 -
T he \ orr i ~ Croup 20 13
DUE-ON-SALE - Should Tru stor sell , transfer or convey any interest in the property, legal or
equitable , either voluntarily or by operation of law, then Beneficiary may , at Beneficiary'S option,
declare all sums secured by this Deed of Trust immediately due and payable.
3. 3
WAIVER - By accepting payment of any sum due after its due date , Beneficiary does not waive
Beneficiary's right to either require prompt payment when due of all other sums or to declare a default for
failure to pay. Beneficiary may waive a default of any agreement of this Deed of Trust, by consent or
acquiescence , without waiving any prior or subsequent default.
3.2
- -
ASSIGNMENT OF DAMAGES - Any award of damages made in connection with:

a. condemnation for use of or injury to the property by the public, or conveyance in lieu of condemnation; or
b. injury to the property by any third party;
is assigned to Beneficiary , who may apply or release the proceeds of such award in the same manner
and with the same effect as above provided for the disposition of hazard insurance proceeds .
3.1
3. It is further mutually agreed that:
HAZARD INSURANCE - Trustor will continuously maintain hazard insurance against loss by fire ,
hazards included within the term "extended coverage ," and any other hazards for which Beneficiary
requires insurance . The insurance shall be mainta ined in the amounts and for the periods Beneficiary
requires . The insurance carrier providing the insurance shall be chosen by Trustor, subject to Beneficiary's
approval , which shall not be unreasonably withheld . All insurance policies shall be acceptable to
Beneficiary, and contain loss payable clauses in form acceptable to Beneficiary . Beneficiary shall have
the right to hold policies and renewals.
_. -
2.2
MONTHS
CONDITION OF PROPERTY - To keep the property in good condition and repair; not to remove or
demolish any building ; to complete and restore any building which may be con structed, damaged or
destroyed; to comply with all laws affecting the property or requiring any alterations or improvements to be
made; not to commit or permit waste ; to cultivate, irrigate, fertilize , fumigate , prune and do all other acts
which from the character or use of the property may be reasonably necessary.
24
2.1
2. To protect the security of this Deed of Trust, Trustor agrees :
ACA.DEMY
How
3.7
3.6
3.5
3.4
- -
PA GE THREE OF THREE-
FORM 450 -
To
BUYING
TRUSTOR'S OFFSET STATEMENT - Within 10 days of Trustor's receipt of a written request by

Beneficiary , Trustor shall execute a written estoppel affidavit identifying for the benefit of any assignee or
successor in interest of Beneficiary: the then owner of the secured property; the terms of the secured
note, including its remaining principal balance; any taxes or assessments due on the secured property;
that the secured note is valid and the Trustor received full and valid consideration for it; and that
Trustor understands the note and this Deed of Trust are being assigned.
a. commencing suit for their recovery or for foreclosure of this Deed of Trust; or
b. delivering to Trustee a written notice declaring a default with demand for sale; a written Notice of Default
and election to sell to be recorded by Trustee.
TRUSTEE'S SALE - On default of any obligation secured by this Dee'd of Trust and acceleration of
all sums due, Beneficiary may instruct Trustee to proceed with a sale of the secured property under
the power of sale granted herein, noticed and held in accordance with Calif. Civil Code 2924 et seq .
ACCELERATION - If payment of any indebtedness or performance of any agreement secured by

this Deed of Trust is in default, Beneficiary may at Beneficiary's option, with or without notice to
Trustor, declare all sums secured immediately due and payable by:
b. On default by Trustor, Beneficiary shall immediately be entitled to possession of all unpaid rents .
ASSIGNMENT OF RENTS - Trustor hereby assigns and transfers to Beneficiary all right, title and
interest in rents generated by the property, including rents now due, past due or to become due under
any use of the property, to be applied to the obligations secured by this Deed of Trust.
a. Prior to a default on this Deed of Trust by Trustor, Trustor shall collect and retain the rents.
SUBJECT
(Nmne Dnd title of officfJt)
'b' The No rris Group 2013
10-12
2012 first tuesday , PO. BOX 5707, RIVERSIDE , CA 92507
-----,
(S
~Ig
~~
n-~--'
at uro of--~--p
n o ta ry -ubh0
~~~~-----------
IFORM 450
Signature
I certify under PENALTY OF PERJURY under the laws of the State of

California that the foregoing paragraph is true and correct.
WITNESS my hand and officiat seat.
who proved to me on the basis of satisfactory evidence to be th e

person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies) , and that by his/her/their signature(s) on the
instrument the person(s). or the entily upon behalf of which the person(s)
acted. executed the instrum ent.
personally appeared _ _ __ _ _ _ _ _ __ __ _ _ _ _ __
(800) 794-04941
(This area for official notarial seal)
Trustor:
,20
Date:
STATE OF CALIFORNIA
\\
COUNTY OF_ _ _ _ __ _~~~
.~ _ _ _ _ _ _ _ __
On
I ,
before me ,
Trustor: ___________________________
,20_1_3_ .
Date: May 27
See attached Signature Page Addendum. [ft Form 251J
7. TRUSTEE'S FORECLOSURE NOTICES - The undersigned Trustor requests a copy of any Notice of Default and
of any Notice of Sale hereunder be mailed to Trustor at the address herein set forth.
6. SUCCESSORS, ASSIGNS AND PLEDGEES - This Deed of Trust applies to, inures to the benefit of, and binds
all parties hereto, their heirs, legatees, devisees, administrators , executors, successors and assigns. The term
Beneficiary shall mean the holder and owner of the secured note, or, if the note has been pledged, the pledgee.
5. RECONVEYANCE - Upon written request from Beneficiary stating that all sums secured by this Deed of Trust
have been paid , surrender of this Deed of Trust and the note to Trustee for cancellation, and payment of Trustee's
fees, Trustee shall reconvey the property held under this Deed of Trust.
4. ADDENDA - If any of the following addenda are executed by Trustor and recorded together with this Deed of
Trust, the covenants and agreements of each shall incorporate, amend and supplement the agreements of
this Deed of Trust (check applicable boxes):
Owner-occupancy rider; .; All-inclusive trust deed addendum;
.; Impounds for taxes and insurance addendum;

Private Mortgage Insurance (PMI) rider.
7.
1'G
TO MAKE
A
MONTHS
, 20_13_ _, at __
R_iv_e_rs_id_e_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _--:-___, California.
24
8.
7.
6.
5.
4.
3.
2.
in
installments of $
, 20_ __
monthly, including
interest,
ARM ,
(0 T he
o rris Gro up 2013
Check, if applicable
Trustor to deposit with Beneficiary sufficient funds for the payment of taxes and fire insurance, specifically
one-twelfth (11'2) of the annual requirements on each calendar month with installment payment. An advance deposit
from Trustor has been received by Beneficiary.
for such payment in the amount of $ 600.00
I
Check, if applicable: [This provision may cause adverse income tax consequences for Beneficiary.]
Beneficiary shall place the Note on contract collection with a bank , savings and loan, escrow or broker authorized
to do so . Such collection shall disburse the monies received first toward the current installment on
the Underlying Obligations , then to taxes and insurance if provided for herein , and any amount then remaining
shall be disbursed to the holders of the Note.
If Beneficiary defaults in his performance under this trust deed, Trustor, provided that he is not then in default , shall
have the right, at his option , to cure Beneficiary's default including the Underlying Obligations by either;
(a) crediting any and all such payments against the principal and interest payments next becoming due under
the Note, or (b) immediately recovering from Beneficiary the amount of such payments including interest thereon at
the Note rate .
In the event of any monetary default by Trustor, Beneficiary's obligations shall be suspended until the default is
cured . If Trustor is delinquent in any payments and Beneficiary consequently incurs penalties or expenses on
the Underlying Obligations , the amount of such penalties and expenses shall be added to the Note and be payable
by Trustor with the next payment.
Any additional principal paid on the Note shall , if Trustor so directs Beneficiary in writing , be paid by Beneficiary to
the holders of the Underlying Obligations for credit to the unpaid principal thereof. If the prepayment entitles
the holders to receive a prepayment penalty, this amount must then be paid by Trustor to Beneficiary for payment
of the penalty. The prepayment penalty shall not reduce the unpaid balance of principal or interest under the Note.
In the event of foreclosure of this all-inclusive trust deed , Beneficiary will at the Trustee's sale bid an amount
representing the arnount then due on the obligations secured hereby, plus any advances or other disbursements
which Beneficiary may be perm itted to include, on which bid Beneficiary to discharge and obtain reconveyance of
the Underlying Obligations.
When the Note becomes due and payable or Trustor requests a demand for payoff, the principal amount of
the payoff shall be the then unpaid principal and interest, and on receipt of payoff funds , Beneficiary to discharge
and obtain reconveyance of the Underlying Obligations.
1.3 Beneficiary to pay all installments and payments called for on the Underlying Obligations .
payable
all due
payable in installments of $ 2,768.06

monthly , including 6
% interest ,
ARM , I plus
impounds .
1.2 A trust deed recorded on _ _ _ _ _ _--;;--_--=_-::-_~- ' as Instrument No . _ _ _ _ _ _ __
in
County Records , California,
executed by
, as the Trustor,
in which
is the Beneficiary,
securing a note in the original amount of $_--=.,=--_ _ _ _ with an unpaid balan ce of $_ _ __ _ __
AGREEMENT:
1. This trust deed is subordinate to the following notes and trust deeds referred to as Underlying Obligations :
1.1 A trust deed recorded on May 27, 201 3
, as Instrument No . ...:.###...:....:.,-...:.I:...:.
.......:.#I...:.'II...:.ih_'_ _ __
in
County Records, California,
executed by _ -"O",-r",ioO'-in",a"--1""Q""ua""l.!,Cifi""e!...-r_ _ _ _ _ _ _ _ _ _---=._ -=---'_ _ _ _ _ _ _ _ , as the Trustor,
in which
Original Lender
is the Beneficiary ,
securing a note in the original amount of $461 ,689.00
with an unpaid balance of $450 ,00 0 00
Items left blank or unchecked are not applicable.

FACTS:
This is an addend urn to the trust deed dated _ _ _ _ __ , 20_ _ _, at _ _ _ _ _ _~~-----' California,
, as the Trustor,
between Your Buyer
and
you , the seller or any entity in which you have interest
, as the Beneficiary.
DATE: May 27
NOTE: Recommended for use with ft Forms 421 and 450.
A CADEMY
How
(I)
,20_1_3__, at
Riverside
To
at the rate of 8
% per annum.
Principal and interest payable in lawful money of the United States.

Each payment shall be credited first on interest then due and the remainder on principal.
2.4
2.5
---
, which debt remains the obligation of Payee.
in the original amount of $
, which debt remains the obligation of Payee.
, on a debt evidenced by a Note and secured by

-.... ' I
an existing Trust Deed held by _ _-=__________________________'
The present unpaid balance of $
in the original amount of $461,689.00
Signature: ___________________
Payor's Name: _________________
Signature: _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ __
Payor's Name: _________________
rhe N orris Group 2013
Payor's Name _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
This Note is secured by a DEED OF TRUST.

7.
Payor's Name: _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
In any action to enforce this Note, the prevailing party shall receive attorney fees.
On default in payment of any installment when due, the whole sum of principal and interest may be called
immediately due at the option of the Note holder.
3.2
, on a debt evidenced by a Note and secured by
an existing Trust Deed held by __o_r--'i9'--in_a_I_le_n_d_e_r_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _.
The present unpaid balance of $450,000,00
The principal amount of this Note includes:

3.1
---
, 20 13
, 20_43_ _, when the principal is due and payable.
year,
and continuing until June 27
quarter
2.3
May
month
beginning on the 27th
on the 27th
day of
DOLLARS,
DOLLARS, or more,
C.
2.1
day of every
.......
three thousand three hundred one and 94/100
20_13_ _ , on unpaid principal
, as the Payee, or order,
2.2
Principal and interest payable in installments of
1.5
with interest from May 27
Four hundred fifty thousand
the sum of
1.3
1.4
address where you receive mail
You or entity in which you have an interest

at
1.1
1.2
, California.
BUYING
In installments as herein stated, for value received, I, jointly and severally, promise to pay to
, dated May 27
SUBJECT
6.
5.
4.
3.
2.
1.
$450,00000
NOTE: RECOMMENDED FOR USE WITH first tuesday FORMS 442 AND 443.
7.
A
24
MONTHS
Sincerely,
Socia! Secun'ry N umber
Signature/ Owner
Socia! Secttriry Number
Signature/ Owner
Date
Date
;0 The N orris C roup
Any and all information they may require regarding loan number
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _' You may reproduce this document to acquire
information from more than one source,
to
Authorization to Release Information
TO MAKE
I/We hereby authorize you to release
How
2nu
(I;
To
BUYING
The No rris Group 2013
Dated this
Day of
Signature/ Seller
S~fI,nature/ S dler
, 20_
_ _I am satisfied that given my current situation this agreement is in my best interest.
_ _I have signed the agreement being fully informed and with sufficient understanding of
all terms and conditions contained in this agreement.
_ _I understand I am selling the property to an investor who's intending to reselJ the
property for a profit. I have agreed to selJ because circum stances dictate an immediate
closing is needed and th e sale is in my best interest.
_ _I agree that I am signing this agreement of my own free will and that the buyer has in
no way pressured me into signing this agreement.
I understand that the buyer in this transaction will not be assuming my loan and that the
loan wilJ remain in my name. I further understand that the buyer intends to resell the
property and the loan wilJ most likely still remain in my name. I agree to hold harmless this
buyer and any future buyer in the event payments are not made and the lender forecloses on
the property for any reason, including enforcement of the due on sale clause.
contains a due on sale clause. This means that the lender has the right to call the entire loan
balance due and payable if this property is transferred to a new owner.
I have been made aware that my loan on the property located at
Date: _ _ _ _ __
SUBJECT
Seller's Acknowledgements
7.
A
24
MONTHS
Authorization to Release Information
TO MAKE
Sincerely,
Socia! Securiry f'-.Tumber
Signature/ Owner
Socia! Securiry Number
Signature/ Olvner
Date
Date
:~:
Any and all information they may require regarcling loan number
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _. You may reproduce this document to acquire
information from more than one source.
I/We hereby authorize you to release to
How
The Norris G roup 2013
To
BUYING
'10 T he No n;, Group 2013
Dated this
Day of
Seller
S~f!,n(lture/ Seller
S~{!,11ature /
, 20_
_ _1 am satisfied that given my current situation this agreement is in my best interest.
_ _1 have signed the agreement being fully informed and with sufficient understanding of
all terms and conditions contained in this agreement.
_ _1 understand 1 am selling the property to an investor who's intending to resell the
property for a profit. 1 have agreed to sell because circumstances dictate an immediate
closing is needed and the sale is in my best interest.
_ _1 agree that 1 am signing this agreement of my own free will and that the buyer has in
no way pressured me into signing this agreement.
1 understand that the buyer in this transaction will not be assuming my loan and that the
loan will remain in my name. 1 further understand that the buyer intends to resell the
property and the loan will most likely still remain in my name. 1 agree to hold harmless this
buyer and any future buyer in the event payments are not made and the lender forecloses on
the property for any reason, including enforcement of the due on sale clause.
contains a due on sale clause. This means that the lender has the right to call the entire loan
balance due and payable if this property is transferred to a new owner.
1 have been made aware that my loan on the property located at
Date: _ _ _ _ __
SUBJECT
Seller's Acknowledgements
7.
1'(;
TO MAKE
24
Buyer's Acknowledgements
MONTHS
Signature/ Bt!Jer
Signature/ Bt!}er
Dated thi s _ _ _ D ay of _ _ _, 20__
I[~
_ _I understand the lender may call the loan due and payable on the house I am about to
purchase.
_ _I have signed the agreement being fully informed and with sufficient understanding of
all terms and conditio ns contained in tbis agreement.
_ _I agree that I am signing this agreeme nt of my own free will and that the seller has in
no way pressured me into signing thi s agreement.
_ _I understand tbat th e origi nal borrower still has their credit at risk and promise to make
all payments in a timely manner
I agree to hold harmless the seller if the lender forecloses on the property for any reason,
including enforcement of the due o n sale clause.
Should the lend er become aware of the transfer, I have been informed of some actions I can
take to prevent the lender from taking the property. I agree to rigorously pursue one of th e
following options in order to solve the problem. I will either qualify for an assumption of th e
existing loan, refinanc e the property and payoff the old loan, or sell the property.
I understand that if the lend er becomes a'vvare that a transfer has occurred, the lender can
commence foreclosure o n the property. I am aware that if the lender foreclo ses, I "\'vill no
longer own the pro perty, I will have los t my down payment, and any other money spent o n
the property, and damaged the credit of the original borrower.
contains a due on sale clause. This mea ns th at the lender has the right to call the entire loan
balance due and payable if this property is transferred to anyone other than the original
bu yer.
I have been made aware that the loa n o n the property located at:
Date: _ _ _ __
How
BUYING
-----------------------------------
has been
To
The '\l u rris Cro up 21113
Bruce Norris
Sincerely,
Please name the trustee of this trust as addi60nal insured.
The trustees name is
______________________________Dated: ________________________________
The property which you insure, located at

transferred to an intervivos trust. The trusts name is
Date _ _ _ _ __
SUBJECT
Letter to Insurance Company
7.
1'G
For others, it was a waste of time
The experience to know when you had a "live one"

The skill to "connect" with the person calling
The time to quickly see the property and make an offer
A follow up system that systematically revived dormant leads
The persistence to write a lot of offers every month
In short, skill with people and capacity to perform
Have title company do a "farming report" for your area (see next page)
(": The 'lorris Croup 2013
3. Here's the process
The ability to answer the phone when it rang
2. What made the difference?
For some people, it worked extremely well
1. This method produced the majority of wholesale deals between 1999-2005
1'G
How
Joe Example
Susie Example
Joe Example
Susie Example
Riverside
Riverside
Riverside
Riverside
This will show you the current owner and where to mail the letter
Hand written envelopes

No bulk stamps
No machine stamps
N o business name on return address
Brief (see sample)
Encouraging, but not promising full price
If possible, include a letter from a happy past seller

Decide how many mailers you can afford to do in six months
4. Mailers should be
Specify how long you want the owner to have owned the property
Acre
0.19
0.16
0.15
0.15
0.35
0.17
0.15
0.16
0.15
0.23
3.49
0.16
4.7
0.23
0.44
0.15
0.29
0.19
019
0.83
0.76
0.38
1.67
0.39
0.57
0.19
0.98
0.69
0.72
0.97
10
1.04
0.92
1.04
1.06
2.24
0.99
4.36
5
5.11
MONTHS
APN
239-312-001
239- 136-005
239-153-009
239-153-010
239-314-002
239-13 2-010
239- 133-007
239-134 -008
239-135-009
239-080-005
239-110-011
239-351-037
270-160-025
271-020 -022
27 1-020-018
271-020-050
271-071-050
271-262-04 1
27 1-252-028
271-080-053
27 1-080-050
271-262 -009
238-140-020
271 -030-042
271-080-043
271-251-021
245-060-024
273-440-013
273-440-022
273-532 -006
273-270-003
273-342-002
273-430-001
273-430-009
273-390-010
273-450-029
273-491-002
273-561-020
273-210-004
273-230-041
24
Buill Bed Ba
1977 4 2
1973 3 2
1976 3 2
1976 4 2
1977 5 3
1973
2
1973
2
1973
1973
1955
1944
1987 3
1960 3
1979 3
1973 3
1973 2 2
1979 3 3
1995 3 3
1989
3
1979
1987
1978
1982 3 3
1989 3 2
1978 3 2
1987 3 2
1954
3
1991
1991
1989
1973
1978
1985
1985
1985 4
1954 3
1986
1989 4
1991 2
1981 3
15710 Pounders Dr
16080 Whispering Spur SI
15700 Washinglon SI
6118 Soulhwlnd Dr
16941 Mockingbird Cny Rd
3151 AirwayAveSleA1
443 Healhrow Cir

23935 California Ave
M-SI M-ZIP
Ca
92508
92503
Ca
Ca
92503
Ca
92504
Ca
92504
Ca
92508
Ca
92506
Wa
98332
Gig Harbor
Orange
92869
Ca
Riverside
92504
Ca
91764
Onlar'io
Ca
92506
Riverside
Ca
92586
Sun City
Ca
92506
Ca
Riverside
R1verside
92503
Ca
Riverside
92506
Ca
Riverside
92506
Ca
Riverside
92503
Ca
Los Angeles Ca
90049
Riverside
92503
Ca
Norco
92860
Ca
Riverside
92504
Ca
Ca
92506
R iverside
Long Beach
Ca
90803
Perris
Ca
92570
Palm Spnngs Ca
92262
Riverside
Ca
92506
Riverside
Ca
92504
Olean
Ny
14760
Riverside
Ca
92504
92586
Sun City
Ca
92506
Riverside
Ca
Rockledge
FI
32955
Hemet
Ca
92545
Ca
Rive rside
92504
Ca
92504
Riverside
Ca
Riverside
92504
Ca
Whittier
90601
Ca
Riverside
92504
Ca
92626
Costa Mesa
M-Cily
Riverside
Riverside
Riverside
Riverside
Rivers ide
Riverside
Riverside
Specify the Thomas .i\/lap page quadrants
Joe Example
Susie Example
Joe Example
Susie Example
Joe Example
RiverS ide Susie Example
Rivers ide Joe Example
Riverside Susie Examp le
Riverside Joe Example
Riverside Susie Example
R iverside Susie Example
R iverside Joe Example
R iverside Susie Example
Rivers ide Susie Example
Riverside Sus ie Ex ample
Riverside SUSie Example
Riverside Susie Exampl e
Riverside Susie Examp le
Susie Example
Riverside
Riverside
Riverside
R iverside
Rivers ide
Rivers ide
Joe Example
Susie Example
Joe Exam ple
(FirSI Name First)

Mail Address
19688 MI Wasalch Dr
9590 Calle La Cuesta
9184 Hawlhorne Ave
15860 Slone Ridge Dr
2391 Grace St
7525 Wood Rd
5469 Quince SI
12406 50lh Avenue CI Nw
7820 E Broadmoor Trl
4135 Rees SI
14 33 E Fresno SI
1141 TigerTait Dr
25885 Sandy Lodge Rd
1244 Fetlock Way
17233 Palm Rd
7197 Brocklon Ave Sle 2
2320 Mary SI
10455 Martin SI
11513 Orum Rd
14138 Judy Ann Dr
2055 Hamner Ave
16385 Mockingbird Cny Rd
3405 Arlinglon Ave
27 Covina Ave
24080 Eslelle Mounlain Rd
429 Tahquilz Canyon Way
37 14 Tibbetts SI Sle 200
3668 Adams SI Api 303
660 Main SI
4530 Sanlee PI
25885 Sandy Lodge Rd
3466 Carlsbad Way
Owner Name
Riverside
Riverside
Riverside
Sllus Cily
TO MAKE
15390 Rancho Son ado Rd

15805 Lindina Dr
15455 Brookvlw C(
Silus Address
2765 Loyola SI
9530 Charier Oak Ln
2878 Calle Tierra Sanla
2868 Calle Tierra Sanla
9670 Calle La Cuesla
2802 Dunbar Dr
2830 Butterfield Rd
9509 Herllage Ln
9519 Charter Oak Ln
2336 Harrison SI
10052 Dufferin Ave
2882 Jackson SI
13220 EI Sobranle Rd
14010 EI Mesa Dr
14195 Perkins Dr
14208 EI Mesa Dr
14230 Oakley Dr
14055 Martin PI
14281 Harvey Ln
14133 Judy Ann Dr
14060 Marlin PI
14181 Martin PI
2150 Gralton SI
14374 Orange Blossom Cir
14250 Martin PI
14470 Harvey Ln
1507 Healher Ln
16368 Regency Ranch Rd
16263 Regency Ranch Rd
16345 Conslable Rd
17850 Palm Rd
16652 Canyon View Dr
15630 Silver Spur Rd
16140 Whispering Spur SI
ACADEM):,
Sq.FI.
1838
1348
1260
1414
2238
1362
1156
1156
1148
1237
1688
1640
1575
1924
1850
1664
2014
1595
2036
2085
2180
1760
3647
20 10
1888
1068
3285
3426
3426
3181
1970
2041
1781
1865
2041
203 1
204 1
2263
3318
3558
The
urri, G ra Ul' 20 I.
TG# Recording Dale

745-a1
4/2811997
745-a1
31111979
71811991
745-a1
745-a1
11 1311986
745-a1
121 1/1977
745-a1
5/2911990
745-a1
21111979
745-a1
612411993
745-a1
31111977
51111981
745-a2
61511996
745-a2
74 5-b1
311411988
745-b7
1211311991
745-c3
4130/1993
745-c3
101111978
745-c3
71911 987
745-c4
6/29/1 992
745-c4
1118/1 990
8/911 990
745-c4
511 811992
745-c4
745-c4
1012711 987
1151 1989
745-c4
101111 981
745-d1
745-d3
1211511 989
511/1 978
745-d4
745-d4
121411 987
7111 1979
745-e2
745...,4
211311 992
745...,4
312311992
745...,4
812811 996
7450 7
211 11 970
61811 987
745- f4
745-f4
8/2011 987
912911 994
745-f4
745-f4
31811 996
1019/ 1996
745-f4
1111511 988
745-[4
412811 995
745-[5
912 111 989
745-f5
10111 11991
745-f5
BUYING FROM ABSENTEE OWNERS
Th l' No rris (;rnul' 2013
Close the deal
Call lender for funding
Have the escrow instructions sent to the seller via FedEx one day
Upon agreement, go to escrow immediately
6. Closing the deal
Call in three months to see if interest in your offer has changed or the property has gone up so
much in value that the deal makes sense at the owner's original counter
If no meeting of the minds occurs, put in "Future Deal File"
If still no reply, call
If no reply, send follow-up letter
Send Fed Ex, two day
5. Making the offer
Call the people back and, if they seem motivated and have equity, see the property
If not possible, have the seller call a message center with an 800 number (like On-Trax) that will
capture the phone number 100% of the time
Answer the phone live if possible
If you make changes to your letter, make one change at a time and make a careful accounting of
how many leads it generated
Get enough absentee owner houses so you can mail your target number of houses each month
without duplication
8.
' - - - - - -tl
,.---.----~- I ~
TO MAKE
A
24
MONTHS
No closing costs will come out of your money. I pay everything.

Escrow closes in 14 days or less.
The property will be bought in "as is" condition.
To make this as simple as possible, your tenant can remain undisturbed in the house.
The offer is subject only to me seeing the interior of the property at a mutually agreed upon me.
Bruce Norris
Sincerely,
If you're interested, please call my of.fice as soon as possible. We're open from 8-5 Monday through
Friday. The office number is (951)780-5856. I look forward to hearing from you soon.
I'd like to come to an agreement by the end of the week if possible. If you would like to receive a
confidential offer on your property, I'll put what I can do in writing within 72 hours. Once you
have accepted the offer, only then will I need to see the inside of the house. After I've approved the
condition, escrow can close within 10 to 14 days.
I'll budget for a basic remodel (paint, carpet, etc.), acquisition cost, and a small margin for myself.
Once I receive a call from you, I'll go see the exterior of the property. Abs olutely no one will be
di sturbed at the house. I'll then figure out the cash price to offer you by starting with market value,
then subtracting the costs you'd normally pay if sold through a Realtor to a fir st-time buyer, in top
condition.
You will receive an all cash offer or one with monthly payments, whichever you prefer.
I recently purchased a rental house in Riverside near a property you own. I own a small investment
company that has too much cash on hand at the moment. If you'd like to sell your rental property, I
can offer you the same amount and close escrow extremely fast. Here's how it would work.
Dear George,
Re: Your property at 600 A. Street, Riverside, CA
July 3, 2013
The N orris Group
1845 Chicago Ave, Ste C.
Riverside, CA 92507
(951)780-5856 Fax (951)780 -9827
Letter to Absentee Owner
A CADEMY
How
The Norris Group 201.3
Bruce Norris
Sincerely,
When my offer is accepted, you can receive your money within 14 days as promised. Please call me
so we can meet at the house as soon as possible.
George, by accepting this offer you'll come out with approximately the same cash as you would
have if the property had been vacant, listed, sold to a first time buyer, repaired in top condition,
minus a 10% margin for my services.
There were several comparable sales with the low end in the $140,000s and the high end in the
$160,000 range. The most exact comp is a 4/2,1619 square feet sold at $152,000. I drove past
the most recent sales and came up with an average in the $152,000 range. I'm comfortable with a
$152,000 retail value. Any higher might be overly optimistic.
As promised, here is a cash offer to purchase your property at 600 A. Street, in Riverside. Also,
enclosed you'll find a rehab cost estimate, and a breakdown of how the offer was calculated.
Dear George,
August 7, 2013
George Smith
500 E. Street
Pasadena, CA 91103
The N orris Group

1845 Chicago Ave, Ste C.
Riverside, CA 92507
(951)780-5856 Fax (951)780-9827
Follow-up to Absentee Owner: Offer
8.
1'G
r - - - - - - I-
r--~-- I -
TO MAKE
24
MONTHS
1,500
1,500
3,000
3,000
500
1,000
10,500
Exterior paint
Interior paint
Flooring, carpeting, pad, linoleum
Kitchen update, appliances, bathroom fixtures, termite inspection/repairs
Landscape update, sprinklers, hauling
Mise. repairs and surprises
Total estimate to rehab for turn-key resale
S;
110,100
152,000
$ -15,200
S 136,800
$ -10,500
$ 126,300
$ -1,000
$ 125,300
$ -15,200
The: 1 orris
10% Margin covers overhead, cost overruns, possible eviction costs, utilities,
possible surprises (always have them), payments and taxes \Vhile property is for
sale, and a reasonable net profit
Cash net to seller
Escrow, title insurance, fire insurance
Estimated retail value

Sale cost using Realtor (6% commission, 3% FHA costs, 1% title and escrow)
Kitchen update, appliances, bathroom fixtures, termite inspection/repairs
Estimated repairs (see above cost breakdown)
How your cash offer was calculated:
$
$
$
$
Rehab / Repair estimate if property is vacated and put in top condition for resale.
Property address:
Page 2
How
( ~mup
2.0 13
(I '}
Tht"
(;ronp 201.1
Date
Date
t\ or ri~
Seller
Buyer
8. Buyer to take title as The Norris Group.
7. Deposits to be assigned to buyer
6. Rents to be prorated through escrow.
5. Buyer agrees to accept the property with the current tenants in possession.
4. Escrow period to be 14 days or less.
3. Buyer agrees to purchase the subject property in its present "As Is" condition.
2. Buyer to pay all sales costs including all escrow fees and title insurance. Escrow to be at Orange
Community Escrow with Tanya Mobies, phone number (714)974-0770. Title insurance to be
issued through New Century Title Company (909)781-1100.
1. Purchase price to be $110,100 cash net to seller.
Bruce Norris hereby offers to purchase the above-described property under the following terms
and conditions:
Offer To Purchase Property Located At

600 A Street, Riverside
Page 3
8.
']N;
(l)
to
them as well. That way he'll actually
to
far fewer people
to
cover a wider range of inventory.
The '<or ris Group 2013
_;.M E
Let's say I found a wholesale deal in an expensive area. I would mail an offer to every other owner using a
similar per-square-foot price to the same area. I would probably never initiate the original absentee letter
here, but once I have created a comparable to support a new offer, you never know what's possible.
I would use this mailer
Absentee system #12 is used after any wholesale comp has been created using any other buying
system. I call this "walking the comp." This will work in both types of markets.
Absentee system #11 is used predominantly during an inflationary market
This mailer can raise the temperature of a few people, but you have an actual comparable sale right
down the street from them. They can't argue that "No one would ever accep t an offer like th at!"
Someone already did'
You use this absentee owner mailer after you buy a house using any other buying system
The mailer w ill state the price you are wi lling to pay for the property
This mailer is sent
2. What's the difference between this system and the other absentee owner system?
I'd go so far as to send a picture of the comparable property

drive by it to confirm you aren't kidding
In stead of sending a letter of inquiry, send an offer with a cover letter and evidence of your recent
purchase all at once
The comparable property should be right in the same neighborhood, so close that the owner of this
property will recognize the name of the street
You have access to wholesale comparable from various sources and use that comparable sale as a
springboard to make yo ur offer
You have created a comparable sale that will substantiate your low offer to this owner
1. Absentee System #2 is used only after you h ave purchased a wholesale deal
TO MAKE
A
24
MONTHS
Close the deal
Call lender for funding
Have the escrow instructions sent to the seller via FedEx one day
Upon agreement, go to escrow immediately
5. Closing the deal
(g The lo rris G roup 2013
Call in three months to see if interest in your offer has changed or the property has gor
much in value that the deal makes sense at the owner's original counter
If no meeting of the minds occurs, put in "Future Deal File"
If still no reply, call
If no reply, send follow-up letter
Send FedEx, two day
4. Making the offer
Out of 200 mailing of this type, you should get chewed out twice, and get one house d,
If the person does respond, it's usually to chew you ou t or accept your offer
D on't follow up on any of these offers. If they don't respond, go on to the next person
Usually the offer is just ignored
If you were sending the mailer without proof of a similar property selling for the same price, the
reaction would often be lousy. However, I've bought a lot of properties this way withou ~ ~ ~~ s. It
just works better with some proof backing the numbers.
3. What's the reaction of the owner who gets this offer?
ACADEMY
How
'Ih ~
ABSENTEE SYSTEM
#2
~f\fter
the
Norris Group 2013
Sincerely,
Bruce Norris
_iM:11 N;
If you're interested, please call my office as soon as possible. We're open from 8-5 Monday through
Friday. I look forward to hearing from you soon.
Once we have an agreement, only then will the interior of the house need to be looked at.
inside condition has passed inspection, escrow can close within 10 to 14 days.
Once you call me, I'll go see the exterior of the property. Absolutely no one will be disturbed at the
house.
6. The offer is subject only to me seeing the interior of the property at a mutually agreed upon
time.
5. To make this as simple as possible, your tenant can remain undisturbed in the house.
4. The property will be bought in "as is" condition.
3. Escrow closes in 14 days or less.
2. No closing costs will come out of your money, I'll pay for those. The only money that will be
subtracted from the offer amount is any loans and taxes you might have against the property.
1. The price being offered is an all cash offer.
If you would consider a similar offer, here is how it would work.
The amount we paid for the other property, located at _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

_ _ _ _ _ _ _ _ _ _----'. was approximately $
or about $
per square foot.
I recently purchased a rental house in Riverside, near a property you own.
Dear Mr. and Mrs. _ _ _ _ __
Re: Your property at _ _ _ _ _ _ _ _ _ _ _ _ __
March 11,2013
The Norris Group

1845 Chicago Avenue, Ste C.
Riverside, CA 92507
(951)780-5856 Fax (951)780-9827
Letter to Absentee Owner
9.
(C;
Th" Norris Croup 20U
I'd rather buy the last house from every builder than multiple houses from the same builder
Concentrate on buying the last house constructed, which is the parking lot house
You may want to wait to buy toward the end of all the builders in the area being done. This
eliminates negative cash flow to a smaller length of time.
8. Pay attention to the competition in the area
Allows time for resale comps to reflect new value
Allows time for more inflation
7. The house you want to buy is yet to be built
6. In an extreme up market like 2003-2004, the builder usually does not raise prices to keep
up with the resale market. They are often competing against each other with similar square
footage houses. This keeps the price per square foot for new houses very competitive.
5. The models make great resale comps
4. The models are sold last, along with the building out of the lot formerly used as the parking lot
3. Try to tie up a house in an early phase of the development and hold until tract is sold out
2. Look for tracts that are ne ar new schools, m alls, employ ment centers
1. Works best when inflation of real estate prices is ge tting ho t
N;
A
24
MONTHS
You should be able to see a disparity in square footage prices in favor of the new home purchase.
Your comparable sales for the used houses should exceed your new purchase by at least 20%.
Example: Existing 3-year-old house selling for $200 per foot. You can buy from the builder at
$160 per foot.
Comp out the resale market for houses five years old and under when considering this type of
purchase
TO MAKE
Tile in kitchen and baths
Upgrade carpet and pad
In-wall vacuum
to
consider your purchase
(I )
The I "r ri s GrollI' 2013
Time your purchase with the fiscal year end for a builder. They cou ld be motivated to make their
numbers for Wall Street
Time your purchase toward the end of the year. Winters are slow for builders, but so is the rental
market
12. Times of year
Either buy at the end of construction for the entire tract or be willing to hold what you have
purchased until the tract is completed
They don't want to try to compete with you when you resell and you don't want to compete with
them
Investors are welcome until builders have problems with too many rental houses in their tracts
11. Builders eventually phase investors out of the process
Granite countertops in Kitchen
Upgrades to consider:
10. Ask where else the builder is building. Chances are you can buy multiple houses from the same
builder. The exact set of circumstances is likely to exist in many locations.
9.
ACADEMY
How
'fh e Norri s GJOup 2013
Make sure to check for the possibility of an approval before you close on the land
\'\lorks best in areas with the least foreclosure competition and trustee sales
The process takes time and costs will vary greatly with every city
Works best as quadrant #4 matures into a full blown explosion of both prices and interest
Works best when it has been done before by others to provide comparable sales
\X/orks best in upscale areas
2. Add to an existing structure
Sometimes it also reverts from multi-family to single family and from multi-family to commercial
(be careful)
Sometimes zoning can change usage from residential to commercial
Sometimes zoning ge ts boosted from R-l to R-2 or R-3
1. Taking advantage of zoning changes
Tear down an existing house and build a new one
Find property in an upscale area and add square footage
Take advantage of zoning changes to create equity
There are several ways of increasing equity by adding square footage to an existing property:
1'G
TO MAKE
A
Some of the various contractors you will need on this type of job
Draftsperson
Demolition crew
Framing
Electrical
Plumbing
)} Roofing
Finish carpentry
Leaye plenty of time to exit the market; don't get greedy
Look for a city that is cooperative
Look for special locations that people are really drawn to
Looking for the smallest house with a larger lot
3. Tearing down an existing home and build new house
ACADEMY
How
24
MONTHS
IS.
T he :-Jou is Group 201 3
Disadvantage: In a hot market, land is usually priced high
Advantage: Broker to be familiar with all the steps to help you get a permit
)}
Direct your efforts to owners who are behind in property taxes
Mail an offer, not just a letter
Mail a ton of them; pick and choose from responses
Place a copy of their net check in the letter
Very undesirable inventory for lender to take back
In inflationary market, value can go up very quickly
Rep etitive business, multiple lots possible
The N o ui , C;wup 20 13
Loans made at 50% loan to value
Buying lots directly from hard money lender
More likely to ge t a discount
Mailing directly to owners
Usually a specialty
Using brokers to find lots
2. Finding lots
Probably more important th an buying the right home is finding the right lot. I've bought somewhere
around 200 lots in my life. I've learned the hard way (as usual) to be very careful. This isn't the type of
purchase you close without taking proper precautions. In this chapter, we will discuss how to find the lot
and how to protect yourself against costly mistakes.
1. Purchasing a lot
TO MAKE
A
Usually seller carryback or hard money lender
Can help someone get on with their life quickly
No income for owner, just expense
Repetitive bu siness
Hardest to appraise
Basis for non-profit: zero
Lot could be completely worthless
Hard to immediately use due to title issues
24
MONTHS
Try to avoid re-zoning unless you have time and patience
Make sure you have access to your lot; not "land-locked"
Easements and access
Make sure the land will accept wha t you want to put there
})
Zoning
'\,. T he Norris Crollp 2013
When buying lots, contingencies are a must. This is not like buying a fixer-upper. Buy the wrong lot and
you may have it for a while. I personally still own seven Jots I bought years ago. Why? Because I forgot to
have a perc test done before closing on my purchase. Sewer isn't available in the area and the lots won't
drain th e waste from a septic system fast enough for the county to approve the lot. Hence, I'm the proud
owner of seven lots whose entire function is to hold that part of the world together. How could someone
so experienced make this mistake? I bought these lots quic kly because the price was right and the lots were
located between other houses. I was so sure they would perc, I failed to protect myself. Here's a list of steps
to take before closing on any lot.
3. Safeguards when buying lots
Price could be very cheap
Buying lots at tax lien sales
Most gifts of real estate are lots or land
Buying lots from a non-profit organization
Look for a dilapidated structure
Buy a tear-down
Saves money on building fees
Buying in-fill lots resulting from fire loss
Ignored by most buyers
Buying lots at trustee sales
How
Colton example
Someone may have built something on your side

The longer it's been there, the more problem to remove it
Variances can sometimes be obtained; time and money
What's close by? It could cause you a problem
Don't count on the Realtor sign being on the right lot
What was there before you showed up

E xample of Moreno Valley home/commercial property and oil storage
Look for areas with other builders active
Better to be lower in price with a manufactured home, just a little
Careful about taking on hilly properties
Compaction not cheap either

Check your local authorities for requirements
(,,:, The No rris Group 2013
Importing not cheap
Elevation of dirt
Topography
Make sure you know you w ill compete well with your product
Competition
If you're all alone, there may be a good reason
Activity
You may not be building on the lot for the first time
History of area
Making sure it's the right lot
Very important to successful project
Location
Be aware of the setbacks on all sides of the lot
Setbacks
Make sure you know the boundaries of the property
Lot Lines and encroachments
Make sure easements won't cause issues when re-selling
MANUFACTURED HOUSING ON
12.
ITs
OWN LAND
TO MAKE
A
Shows the makeup of your soil
Shows the capacity to support a structure
Changes the requirements of the foundati on
Tests how the soil accepts the emissions of a septic system
Failure to check this out is an expensive mistake
Less acceptance, unless it's the norm for the area
Be cautious; it takes time, money, and approval of surrounding residents
Check with the building department for local requirements
Some lots will just never be right without major expense
Could be a deal stopper or just more expensive
Check out if the property is in a flood zone
Insurance could be expensive
Property could be located in an area not possible to build in
Flood zone
Some areas protect endangered species
Endangered species
Make sure the lot will drain properly
Drainage
Check out if there is a hydrant close enough to your property
Fire hydrant requirements
Large parcel-subdivide
If possible, stay with a paved surface
Paved or dirt road
Needed when you will be installing a septic system
Perc test
Important to the foundation of your home
)\
Soils test
If not, make sure you know how much it will cost to get what you need
MONTHS
Make sure you have water, power, and gas close by
24
Availability of utilities
ACADEMY
How
The' N orris
C; roup 2U 11
~;) 'Jll~
Local building departments can provide this information
Very expensive solution

If in doubt, pass
Needed to insure your home will have proper drainage and suppOrt
Needed to obtain a building permit
Civil engineer required
Don't grade without a permit
Shows placement of your home and garage on the lot
School fee s can be a real wildcard

Know these before you figure what you can pay for the lot
N orris Group 2013
Varies wildly, depending on city or county
Permit cost for area
ITs
OWN LAND
Can vary greatly, depending on the amount of earth moved, imported, and topography
Plot plan
Grading costs
Required prior to moving dirt
Grading permits
Needed to get a loan from us
Grading plans
Stay away from obvious past usage as a garage or storage of tanks, etc.
Hazardous materials
Wind zones can affect the foundation requirements of your home
Wind zone
12.
'N;
TO MAKE
ON
O N
Distance:
Distance:
Distance:
O N
j 1
Distance:
_ _ _ _ _ _ _ _ _ _ _ _ __
ON
MONTHS
Cosr: $ _ _ __ _ _ _ _ _ _ _ _ _ __
Cos t: $ _ _ __ _ _ _ _ _ _ _ _ _ __
Cost: $ _ _ _ _ _ _ _ _ _ _ _ _ __
Cos t: $ _ _ _ _ __ _ _ _ _ _ _ __
Dista nce: _ ___Cost:
Removal of trees: 0 Y
24
O N
In-FiU: 0 Y
O N
Area:
Lot lin es marked:
E nvironmental Test:
0 N
OY
Comments:
Retail of our proposed hou se: S
Over-bui lt or under-built: _ _ __ _ _ _ _ _ _ _ _ __
Price range of homes nearby: _,'_ _ _ _ _ to S _ _ __ _ _ _ _ _ __ _ __ _ _ __ _ _ ____
Any moratoriums: 0 Y O N
Fee increase dates: _ __ __ _ _ __ __ __ __ _ _ __ _ _ _ _ _ _ _ _ __ _ __ _
Processing time:
0 yON
Building permits:
Cosr:S._ __ _ __ _
Soils Test:
Tests and o th er items needed:

Perc tes t:
0 YO N
Wind wne:
Environmental issues:
An tfa ffie:
Neig hboring area:
Fire area:
Earthquake zo ne: _ _ _ __ _ _ _ __ __ _ _ __ __ _ _ _~_ _ _ __ __ _ _ _ __
N oise:
Flood zone:
Problems :
Drainage: _ _ __ _ __ _ __ _ _ _ _ __ _ __ _ __ __ _ _ _ __ _ _ _ _ _ ____
Closest neighbor: _ _ _ _ __ __ _ _ _ _ __ __ _ __ _ _ _ __ _ _ _ __ _ _ _ __
Positives: View: 0 Y
Parking requirements:
[<ire hydrant reljuiremeors: _ _ _ _ _ _ _ _ _ _ __ _ __ __ _ _ __ _ __ __ _ _ __
T elepho ne available: 0 Y
Se'w er availab le: 0 Y
E lec tric availability: At site: 0 Y 0
0 Y O N
ON
Easements:
Fla r: 0 Y 0 "l
Gas availability: At site:
ON
Sub ordination: 0 Y 0 K
_ _ _ _ Date: _ _ _ _ ___Annual Tax BiU:
Water availability: At site: 0 Y
CC&Rs: 0 Y
Paved: 0 y
Prior use of lot:
Rec eor sale o f same lo t: :-;
Option:
Asking Price: $_ _ _ _ _ Offer: $_ _ _ _ Owner Carry: 0 Y
Size _ _x_ _
SITE CHECKLIST
Locatio n
APN # ____________ Zoning
How
~;J
The N orris Grour 2013
MANUFACTURED HOUSING ON ITS OWN LAND
.t : 1 h ~ N () r:ri ~ Group 2013
P.S. Just so you know, we don't list properties, only buy them!
Bruce Norris
Sincerely,
IIM' 1'G
Still paying taxes on that vacant lot in

? E nclosed is an offer that will do one of two
things. The fir st option is that we'll pay all cash for your lot. Before we close escrow, we have to
make sure we can build on it. Once that is determined, you will receive your money. The second
option is for you to get monthly payments for the equity in your lot. The price is higher if you
decide to carry financing. I'll let you make the deci sion. Please take a look at the two offers and
give me a call at
. I look forward to hearing from you soon.
Dear lot owner:
The Norris Group

1845 Chicago Avenue, Ste C.
Riverside, CA 92507
(951)780-5856 Fax (951)780-9827
Letter to Land Owner
12.
TO MAKE
A
Soils test
Perc test
Availability of utilities
Grading plan
Can extend closing time way into the future

Minimum cash tied up
Option money-how much?
Renewable options
Cost of not exerci sing an option
:NIultiple lots: close one at a time, option the rest
Selling your option
Possible to tie up lots in advance of ac tivity, like we're doing in Arka nsas
Tie up a lot and fl ip it
Seller carryback financing
Subordination
})
MONTHS
Gives you time to make sure of what you are getti ng
24
Write offers that give you an option to buy the lot
Title report
Make the offer subject to your approval of:
4. Writing the offer
How
,('; The
~()[ris
Group 2(11,
~G
MANUFACTURED HOUSING ON ITS OWN LAND
Compaction decreases void ratio and increases strength
Compaction causes less settling
If you use fill dirt, know what kind of dirt it is
Use the right mix of water to go with the type of dirt
Compact the dirt in stages, no more than eight inches at a time
;>
);
Lacustrine soil: Created by sedimentation
Glacial soil: Soil that is pushed, eroded, or carried by a glacial movement
Eolian soil: Transported by wind, like beach sand
Colluvial soil: Deposited by gravity, like the sliding of a hillside
Organic soil: Made up of decomposing plant life
Th e ~o rri , GrollI' 2013
manufactured home will know how many supports are needed and how far apart they can be.
A soils test w ill show the bearing capacity of your lot. Based on that report, the installer of the
A lluvial soil: Left by running water
Types of soil
Increased when soil is compacted
Bearing capacity
IIM"j N;
Soil is made up of three elements: dirt, moisture, and gas. The mixture of these three elements \vill
determine the strength of your soil. The soils test will determine sheer strength, shrinkage, swelling, and
consolidation. Based on these facts, a conclusion is made as to the bearing capacity of the soil. This directly
affects the foundation that will be required when installing a home.
What is soil?
5. Soils Test
12.
TO MAKE
A
Type in the city and state you are looking for
24
MONTHS
Type in "gas companies"

Type in city and state you are looking for. If this doesn't ge t you what you want, just type in th e
state of California
Click on Gas Utility companies
An alphabetized list will appear
Type in "water companies"

Type in the city and state you are looking for. If this doesn't get what you want, just type in the
state of California
.
Click on Water Utility companies
An alphabetized list will appear
Call the City or County where the propert y is lo cated. Most D epartments check to see if the
property is on se ptic or se\ver by the address.
:) The Norri s (jmup 2013
The following pages are procedures to follow when installing a septic sys tem shou ld sewer be
unavailable.
Finding out if an area has sewer service
Ju st a note: You can obviously find anything this way. Just type in the desired category, and the answer is at
your fingertips.
Go to www.superpages.com
Water Companies
Go to www.super pages .com
Gas companies
The resu lts will be so me electrical utility companies and elec trical contractors. You should have
no trouble distinguishing the differe nce
Type "electrical utilities" in category box
Go to www.superpages.com
Electrical utilities
6. Directions for finding utility companies in your area
How
Plot plans
7.
The Norris G roup 2013
37. Warranty
36. Sales costs
35. Contingency (sometll ing always goes wrong)
34. Interest
33. Loan fe es
32. Liability insurance
31. Fire insurance
30. Supervision
29. Landscape
28. Carpet
27. Roofi ng garage
26. Painting ga rage and touching-up exterior
25. Roofing home (if you are not getting a stand ard roof)
24. Stucco (if you are not getting factory siding)
23. Siding for garage
22. Frami ng garages and porches
21. Concrete for ga rage, patios, and sidewalks
20. Grading, backfilling, and compaction
19. Air conditioning system
18. Fou ndation system (includes stem wall, footings, and installation)
17. Utility trenching and installation
16. Interior drywall, painting, and mise.
15. Setup of manufactured home (includes putting the two halves toge ther)
14. Dig pit and footings for fou ndation
13. Layout lot to receive home
12. Delivery
11. Sales tax on home
10. Surcharge (p rice increases of lumber, ete.)
Purchase of the house from the factory
8. Permit fees
Cable and phone service
6.
5. Utility costs (ge tting the utilities to your site)
9.
Plans for the structure itself (includes engineering)
4. Foundation plans
3.
2. Plans for grading
1. Purchase of a lot
Categories of Costs
12.
ITs
II-' 'N;
OWN LAND
ACADEMY
How
$30,088
Sales costs
Profit
Profit
Sales costs
$35,254
$179,900
$135,651
88,995
SaJes price
Cost
3 169,900
$130,317
$8,495
Sales price
Cost
MONTHS
$133,515
$2,198
$130,317
24
Tutal
Rebate
Cost
Cost breakdown for Rosamond:

1406 S(Juarc foot:
Lot
$13,000
rire Insurance
$500
Liability Insurance
$1,500
Utility costs
$1,000
Permits
$1 3,565
House
50,500
33,884
Delivery
Surcharge
$1,000
Sales tax
31,400
Grading plan
i 400
$800
Dig pit
unit
$3,700
AI
Al e pit
$600
Set up crew
32,700
Design
5400
Common area
$2,000
Tvlise. lot co sts
$3,500
1\Jise. repairs
$1,000
Contingency
31,000
Foundation
$3,500
Stem wall
S800
Utility connection
33,450
Grading
$2,600
Cuncrete
34,700
Framino
~ 7,500
b
Exterior paint
$800
Exterior siding
3750
Garage roof
S500
Tnterior drvwaLl
SI,OOO
Carpet
SI,600
Landscape
51,000
Loan interest and fees
S5,200
Supnvision
31,500
$500
\Xiarranty
Total
$137,849
Rebate
$2,198
Cost
$135,651
Cost Breakdown for Rosamond:

1296 S ll:m: foot:
Lot
$13,000
Fire insurance
:!\ 500
Liability Insurance
$1,500
U tility costs
$ 1,000
Permits
312,565
S4(),500
House
Delivery
S4,650
$1,000
Surcharge
Sales tax
31,300
Grading plan
$400
$800
Dig pit
/\/e unit
$3,700
AIC pit
i 600
Set up crew
$2,700
Design
$400
Common area
~ 2,OOO
Mise. lot costs
S3,500
~ 1,000
1\1i5e. repairs
31,000
Contingency
r()undation
$3,500
Stem wall
$800
tility connection
$3,450
Grading
$2,600
Concrete
$4,700
Framing
$7,500
Exterior paint
$800
$750
Exterior siding
Carage roo f
$500
Interior drywall
$1,000
~ 1,600
Carpet
SI,OOO
Landscape
Loan interest and fees
$5,200
Supervision
$1,500
11) 500
\'('arranty
TO MAKE
'D The
orris Group 2!l1 .l
Raised Aoor founda tions--similar to manufactured home found ation
Support the weight of the home

Prevent updraft, especially important in high wind areas
Prevent water fro m getting under the home
Properly ven t moisture when it gets under the home
Provide support against backfilled dirt
Aesthetically acceptable
Approved by takeout lenders
Long lasting
1':asy to maintain and repai r
),
Speed of installation
Surface water disposal and degree of slope required for drainage
Is the home going to be ground set or above grade
Is the home going to be personal or real property
Are the exterior walls supported
How will you access underneath the borne
Are you adding a garage, porch, etc.
II
((') T he Norris Group 2013
Cos t to ins tall
Some things to consider prior to choosing a foundation
Cope with the elements and built to withstand :
Wind
E arthqu akes
Surface water
Snow loads
The multiple jobs of the foundation
Why it can't be li ke a regular house
Permanent Foundation
7. Manufactured Home Foundation Systems
12.
ITs
-MD E
OWN LAND
A
Poured concrete foundation walls

Three sides only
House backed in and set down on bolts protruding from top of wall
Side walls support house
Front wall then completed after house is set
Still need support and leveling underneath (pier and pad system)
Pony wall system
After pier and pad system is in place
Stem wall made of wood or metal studs attached to house
Stem walls are attached to bottom of house and extend downward into the pre-dug footing
When footings are Blled with concrete, this pony wall supports the exterior weight of the
house, but also attaches the house to the footing
Treated plywood is then nailed to pony wall, providing support for back-Blled dirt and
further sheer strength
Cosmetic block wall system
House is set with pier and pad system
Block walls are installed, encircling the house
These walls usually support no weight, but provide a Bnished look and support for
backBlled dirt
Extra piers and pads are used to support exterior weight
If selling house and needing an FHA-approved foundation, another set of support piers
called Maxi Piers are installed
"
,)
MONTHS
Pier and pad support system

Basic setup for leveling and joining together
Metal stands supported by treated wood or concrete squares
Sizes vary depending on soil type, weight of house, etc.
24
"
Different types of foundations
TO MAKE
IC The Norris Group 2013
While manufactured homes are built to a H D standard, the foundation systems must be approved by the
local building department. There will be differences between the requirements for HUD construction and
BC construction. Check with the manufacturer, the dealer, and the engineer to make sure you have the
right foundation system for your house.
How
(t.)
Th" N o rri< Group 2(1 13
Cos ts can vary between cities. Always check it out!
O nce convinced the split is possible, then close the dea l
Consider paying a little more than normal for this type of dea l
Follow up with a phone call if particularly interes ted in the proper ty
M ail a letter expressing interes t in buying the property
3. The process
See example
If you can find an out-of-the-area owner, so much the better
Search in areas where, on occasion, one hou se has a lot at least twi ce the norm al lot for the area
2. Most likely candidate
Your goa l is to use the house as a rental while you go through the process of splitting the lot
That could be quite different as the market increases . Lo t prices in 2005 were off the chart!
E xcess land during down times won't bring much of a premium for the seller of a house with an
oversized lo t. This is especi ally true of HUD and lender- owned hom es
There are two markets where this will work.
When th e real estate m arket is nearing the worst part of the cycle. Your bes t deals price-wi se will
be m ade here
Mom entum already in place for real es tate, but since prices gain most o f their streng th toward
the end of the boom cycle, it's safest here. Your biggest and fas test m argins of profit are in thi s
cycle
1. Market to be used in
TO MAKE
A
24
MONTHS
Look for a piece of land th at's of little use without adjoining with a neighboring lot
. T h~ -o rri, c; roup 201 3
The parcels were oddly shaped individually, but together they made a nice rectangular parcel
Land parcels were zoned R-l , but located between two industrial centers
Van Buren example
Likely candidates to approach:
Can be used any time. Usually you are changing the use and utility of what is there now. You don't
need inflation to create value
Assemblage: Putting more than one lot together
Once the lot split is obtained, you have multiple choices
You can build on your new lot or just sell it
You can also now sell your existing rental which has gone up in value
Make sure you have purchased this type of property well enough that the deal will at least break
even if the lot split is denied
Submit your request to the city for a new lot creation (you should have already looked into the
process and have an idea how long it will take)
5. The exit
Buying "subject to" an existing low-interest loan would work
Make the offer subject to you confirming a lot split is possible. If you don't do this, you may just
own a really big yard
Consider having the owner carryback financing which will allow for less holding costs while
obtaining a lot split
4. The offer
How
We got copies of everything the city needed us to do
\Y./e were told of the approximate cost and length of time to accomplish this
N orri s Grou p 201 3
The property was resold for about $250,000 about a year after we put the property in escrow
Once the lot line adj ustment has been accomplished, the plan was to sell the land to a developer
9. The exit
The offer was $65,000 for the first lot and $10,000 for the purchase of the second lot
We clearly stated that we \,\Tere not going to be closing the purchase until the lot line adjustment was
complete
Instead of a purchase agreement, we had them sign an offer giving us an option to buy the property
Each parcel was owned by a separate person
We then approached the owner with our offer
8. The offer
Il) The
BIG YARD AND LOT SPLITS
Prior to making the offer, we checked if the city might go along with doing away with a lot line and
then change the zoning
7. The process
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DEC
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to
approach:
The Nor';, Group 20 13
';;(.).1 N;
Your offer will solve all of the cash outgo for them and tie up the property like a present to be
opened later for you
You are looking for someone who wa nts off the holding costs of a declining asset (that won't be
hard to find)
Although naming the price is important, the terms are more important
Mail out offers, not to purchase, but to option the land
3. The Process
Private lenders who have taken back the property and can't sell it
Owners who have failed to make the property taxes for the past few years
Owners who have grown tired of weed abatement fees
Owners who have been getting tired of making the tax payment every year
2. Likely candidates
Land explodes in price during the last couple years of the boom
Want to extend our option toward the end of the boom cycle
Want to time our option with the approximate bottom of the market
Likely to be most viable when land purchasers have fled
TO MAKE
A
24
MONTHS
cD T he Norri s Group 201 3
You can get an option to purchase the note at a discount if the property has any debt against it.
When the seller finally closes the land sale to you, part of the money he gets pays off the lender,
which happens to be you
You can create a parcel map
You can change the zoning while the option is in place, thus changing the value
You can sell your option to another investor
7. Profit centers and exit strategies
If the tax bill is at 1% of today's land value (it could be much less), then you have effectively tied up
the property with a seller carryback mortgage at 1% interest or less
People who are failing to make the tax bill payment have basically written off the property
Many plots of land have been owned for a long time
6. What is the actual cost of tying up a property in this manner?
If you want out, simply don't make the tax payment
Land tax bill hasn't gone up since the owner remains the same
You've given the seller what they want: a way off the overhead
You have tied up the property at today's price
You don't own anything yet, so you don't need liability insurance
With this method, you have very jittle out-of-pocket expense
5. Why this is superior to purchasing and having the seller carryback financing:
This can continue indefinitely, but we're looking for an exit every year
Option may be renewed by simply paying the next year's tax bill prior to its delinquent date
Option money to be one year tax payment amount, paid to the tax bill, not the owner
Option the property for the going value or less
4. The offer
How
OPTION L AN D B ANKING
8. Before you spend your hard earned money on a piece of land, fill out the following form and
know what you are buying
Protect your interest by recordi ng the option agreement
Sell the option, sell the land, build on the land or trade it as interest peaks
Line up land in to the future while there is zero interest and no competition
ACAD f, MY
1'C
You can have plans drawn up and submitted for approval without having to be out of pocket for the
land until you are ready
14.
TO MAKE
SITE CHECKLIST
TheNoRRlsGROUP
0 Y ON
ON Distance:
Processing time:
E nvironmental Test:
Lot Lnes marked:
o YON
oY 0
Comments:
T he Norris Group 2013
Any moratoriums: 0 Y O N
Fee increase dates :
Price range o f homes nearby: .'._ _ _ _ to $ _ _ _ _ _ _ _ _ _ _ _ _ __ _ __ _ _ _ _ _ _ __ _
Retail of our pro posed ho use: $

O ver-built or under-built: _ _ _ _ _ _ _ __ __ _ _ _ _ _ __
Cost:S
Building permits:
o
o
Envlfonmental issues:
Wind zone:
Tests and other items needed :
Perc test:
Y ON
Soils Test:
Y ON
Flood zone:
N oise:
Air traffic:
l\. eighboring area:
Fire area:
Earthquake zone: _ _ __ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ __ __ _ _ _ _ _ _ _ __
Problems:
Drainage: _ _ _ _ _ _ _ _ _ _ _ _ _ __ __ __ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ __
Closest neighbor: _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ __ _ _ _ _ _ _ _ __
Positives: View: 0 Y ON In-Fill: 0 YON Area:
Parking requirements:
Fire hydrant requirements: _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ __
Cost: $ _ _ _ __ _ _ _ _ _ _ _ _ __ _ __ _
Cost: $ _ __ _ _ _ _ _ _ _ _ _ __ _ _ _ __
Cost: $ _ _ _ _ _ _ _ _ _ __ __ _ _ _ __
Distance: _ _ _ _ Co st: $ _ __ __ _ _ _ _ _ _ _ __ _ _ _ _
Telephone available: 0 Y ON Distance:
Sewer availab le: 0 Y
MONTHS
Distance: _ _ _ _Cost: $ _ _ _ _ __ __ _ _ _ _ _ _ _ __ _
E lectric availability: At site: 0 YON Distance:
Gas availability: At site:
Water avai lability: At site: 0 Y 0
24
Subordination: 0 Y O N
Date:
A nnual Ta x Bill: _ _ _ _ __ _ _ _ _ _ __
ON Flat: 0 Y ON Removal o f trees: 0 Y ON
CC&Rs: 0 Y ON Easements:
Pa ved: 0 y
Prior use o f lot:
Op tion:
Recent sale o f same lot:
Asking Price: S_____ Offer: S_ _ _ _ Owner Ca rry: 0 Y ON
Loca ti on
APN # ____________ Zoning _ _ __ Size _ _x_ _
How
OPTION LAND BANKING
Off-site improvement plans

Soil engineer's report
Land use study
Application for a conditional use permit
i' T he Norri s G ro up 201 3
PAGE ONE OF TWO -
FORM 161 -
lit,lig E
OPTION PERIOD:
Optionor hereby grants to Optionee the irrevocable option to purchase the Optionor's right, title and interest in
the property on the terms stated, for a period commencing with the acceptance of this option and expiring
____________ , 20 _ __ , or
on termination of the optionee's leasehold interest in the property.
5. EXERCISE OF OPTION:
Optionee may exercise this option during the option period by:
5.1
Signing escrow instructions identical in provisions to those attached as Exhibit A and delivering
the instructions to escrow [See ft Form 401];
5.2
Depositing cash in escrow of $
; and
5.3
Delivering an escrow-certified copy of the signed escrow instructions to Optionor within the option period,
in person or by both certified and regular mail.
6. ESCROW CONTRACT:
In the event this option is exercised , the transaction shall be escrowed with
6.1
Escrow shall close within _ _ _ days after exercise,
7. DELIVERY OF TITLE:
On Optionee's exercise of this option, Optionor shall timely place all documents and instruments into escrow
required of the Optionor as necessary for escrow to close as scheduled .
8. BROKERAGE FEE :
Optionor agrees to pay a brokerage fee of $
, or _ _ _ % of the selling price, IF:
8.1
This option is exercised;
8.2
Within one year after expiration of option period and any extension or renewal, Optionor enters into
an agreement to option, sell, lease or exchange with Optionee, or their assigns or successors; or
Optionor wrongfully prevents the exercise of this option;
8.3
8A
Payable to Broker(s) _________________________________________________________
9. SALE TERMS:
payable as follows:
Price of $
9.1
All cash.
9.2
Cash down payment in the amount of $________~___.
9.3
Take title subject to, or
Assume, an existing first trust deed note held by --------:7-;-~_,_,,_-'
with an unpaid principal balance of $
, payable $
monthly, including
interest not exceeding _ _ %,
ARM , type
, plus a monthly tax/insurance
impound payment of $
a. At closing, loan balance differences per beneficiary statement(s) to be adjusted into:
cash,
carryback note, or
sales price.
b. The impound account to be transferred :
charged, or
without charge, to Optionee.
Assume , an existing second trust deed note held by _ _ _ _ _ _ _ _ _---,.,-,-,
9.4
Take title subject to, or
with an unpaid principal balance of $
, payable $
monthly,
including interest not exceeding _ _ _ %,
ARM, type
due
, 20 _ _ _.
4.
Property survey report by licensed California surveyors

Architectural plans and specifications
Zoning ordinance request
On-site engineering plans
Application for a parcel map or waiver
DATE:
, 20
, at
, California .
Items left blank or unchecked are not applicable.
1. OPTION MONEY:
Optionor herewith receives frorn Optionee option rnoney in the arnount of $
, evidenced by:
cash,
check, or
, given in consideration for this option to purchase real property.
2. REAL PROPERTY UNDER OPTION:
Address __~__~____~____~__~____________________________~~~~____-77-~__~___
Legal description/Assessor's parcel number
3. ADDITIONAL CONSIDERATION:
As further consideration for this option, Optionee is to obtain at his expense and deliver to Optionor prior to
expiration of this option the following checked iterns regarding the property:
14.
9.5
- -
PAGE TWO OF TWO -
FORM 161 -
24
MONTHS
Signature: _ _ __ _ _ _ _ _ _ _ _ _ _ _ __
Is the agent of:
Signature: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Is the agent of:
Signature: _ _ _ _ __ _ _ _ _ _ _ _ _ _ __
Address: _ _ _ _ _ __ _ _ __ _ _ _ _ __ _
Phone: _ __ _ _ _ _ _ Fax: _ _ _ _ _ _ __
Email:
Signature: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Address : _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ __
Phone: _ _ __ ____ Fax: _ _ _ _ _ _ __

Email :
The Norris Group 20 U
Signature : _ _ _ __ _ _ _ __ _ _ _ _ _ __
Signature : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Date: _ _ _ _ _ _, 20
stated above.
stated above.
Optionee:
I hereby accept this option and agree to the terms
I hereby grant this option and agree to the terms
Optionor: ---:::--_ _--:-.,---_ _ __ __ _ _ _ _ __
Phone: _ _ _ _ _ __ _ Cell: _ _ _ _ _ _ __
Email:
Phone: ~~----~
Email:
Date: _ _ _ _ __, 20_ __
Both Optionor and Optionee .

Address : _ _ _ _ __ _ _ __ _ _ _ _ _ _ __
Both Optionor and Optionee .

Address : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Optionor exclusively.
Optionee exclusively.
OPTIONEE'S BROKER:
Broker's DRE Identification #:
Agent's Name:
Agent's ORE Identification #:
Broker's DRE Id entification #:
Agent's Name:
Agent's DRE Identification #:
OPTIONOR'S BROKER: _ _ _ _ _ __ __ _
10.4 Both parties reserve their rights to assign, and agree to cooperate in effecting an Internal Revenue Code
1031 exchange prior to close of escrow, on either party's written notice.
11. EXPIRATION OF OPTION :
This offer to sell shall be deemed expired if not accepted by exercise during the option period .
11.1 This option contra ct shall automatically terminate by expiration on
, 20_ _ _.
b.
a. This note and trust deed to contain provis ions to be provided by Optionor for:
due-on-sale,
prepayment penalty,
late charges ,
A note for th e balance of the purchase price in the amount of $

to be executed by
Optionee in favor of Optionor and secured by a trust deed on the property junior to the above referenced
monthly, or more, beginning one month after closing , including
financing , payable $
years after closing .
interest at _ _ _ % per annum from closing , due
TO MAKE
The attached Financial Disclosure Statement is an addendum to this agreement (mandatory on

four-or-Iess residential units). [See ft Form 300]
c.
Optionee to provide a Request for Notice of Default and Notice of Delinquency to senior
encumbrancers. [See ft Form 412]
10. GENERAL PROVISIONS:
10.1
See attached addendum for additional provisions. [See ft Form 250]
10.2 Attach ed as addenda are the following checked disclosures mandated on four-or-Iess residential units:
a.
Condition of Property Disclosure - Transfer Disclosure Statement (TDS) [See ft Form 304]
b.
Natural Hazard Disclosure Statement [See ft Form 314]
c.
Disclosure of Sexual Predator Database [See ft Form 319]
d.
Hazard Disclosure Booklet, and related Optionor disclosures , containing Environmental Hazards,
Lead-based Paint and Earthquake Safety [See ft Forms 313 and 315]
e.
Documentation on any Homeowners' Association (HOA) involved .
f.
Notice of Supplemental Property Tax Bill [See ft Form 317]
10.3 Possession of the property to be delivered on:
see attached Occupancy Agreement. [See ft Forms 271 and 272]
close of escrow, or
How
SPACE ABOVE THIS LINE FOR RECORDER'S USE
OPTION LAND B ANKIN G
~.......
(Name find
Optionor
Optionor:
LH8 of office')
,20___
,20_ __
before me,
,,:; Till: Nmr is Crol1p 2U13
10-12
(This area for official notarial seal)
(Signature)
(Signa ture)
(02012 first tuesday , P.O. BOX 5707 RIVERSIDE, CA, 92507 (800) 794-0494
----------;(~
S~
ig:-:
n:-:
a7."e
tur::--o
"'"""'-=f n ot;:
ac:-:-:
ry p:-:-u:;:
b7'::;
lic),----------------
IFORM 440
Signature
who proved to me on the basis of sati sfactory evidence to be the
person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/thei r signature(s) on the
instru ment the person(s), or the entity upon behalf of whi ch the person(s)
acted, executed the instnument.
I certify under PENALTY OF PERJUR Y under the laws of the State of
Cal ifornia that the foregoing paragraph is true and correct.
WITNESS my han d and official seal.
personally appeared
On
STATE OF CALIFORNIA
COUNTY OF___
Date :
Date:
See attached Signature Page Addendum. [ft Form 2511
to the following described property
, California.
DATE: _ ________ , 20_ __ , at
---------;-.....
~----"'--;,
:--------;---;------------''-;,:---;.; -------,-a-s--:-:-the Optionor,
l!We,
as the Optionee ,
grant
an irrevocable option to purchase , under an option agreement of the same date , expiring _______,20_ __
Phone
Ema il -------...:'-;,
:--~,
::------
MEMORANDUM OF PURCHASE OPTION
Prepared by: Agent

Broker __________________________
City &
State
Street
Address
Name
AND WHEN RECORDED MAIL TO
RECORDING REQUESTED BY
14.
N;
H ave an ex it clause if they don't do what was promised without cost to you
T he N {Jl'ri, (jwLlP 21J 13
If the 30 day listing isn't possible, create another exit plan. f\gree on the amount of advertising cos t
per month to be spent and have the right to cancel by reimbursing the agent for only their out-of
pocket expenses
Pick a listing price that the agent fed s will sell in 30 days and give the agent a 30 day listing
You should have an und erstanding of the marketing plan the agen t will pursue such as: signs, open
houses, website, adver tising, lock hox, etc.
2. What you should negotiate up front prior to signing on tbe dotted line
T he agent you want doesn't di scount listing fees
The agent you have chosen is respected by other top agents, allowing your property to be toured by
other key real estate offices
You are going to price your property near the top of the market
You want to attract the best representative for your transaction
You want full at tention (at leas t equal attentio n) paid to your listing
L Why would you consider this route?
N;
TO MAKE
A
24
MONTHS
Repeat business for a job well done
Be forgiven an unintentional error
The Noni' CrullI' 2013
They should expect to be dealing with a problem solver. Every transaction has its challenges. When
problems arise, you should be able to immedia ly transfer to "solution mode"
The truth about the product they are representing. If you know about a defect, make sure they know
as well
Loyalty. You won't price shop for a cheaper fee
No overreaction to bad news
4. What a great agent has a right to expect from you
A good agent knows their paperwork and will be able to correct defects in offers that other agents
won't catch
A good agent wi ll tell you when you are making a mis take
A good agent will tell you the truth or bad news as soon as they know it
Stick wi th the straight shooters. Other agents already know who they really are. You have just
adopted their reputation by hiring them, so make sure that decision reflects positively on you
Be aware of an agent's willingness to deceive someone for your benefit (it soon will be your turn)
3. What I look for in an agent
All of this becomes unnecessary once you get to deal with your own "sales infiltrator." You will
then be the beneficiary of the "low cost of high trust." This agent is now a part of your team and
they do only what is in your best interest
If possible, ge t a referral from someone who is in our business. This listing agent is very important
to your success. Pick them wisely and be a loyal customer
How
At this time consider bonusing the saJes side o f the transaction
t 11 e
URI S
That's very costly for both the agent and the owner
'" The 'lurris Croup 2013
k. U ) J'
Listings in this quadrant are a dime a dozen, but many expIre
In this quad rant, it might be good to have an agreement that after 30 days, the listing be re
evaluated
A full commissioned listing agent will have to aggressively market the "second tier inventory" to
find an interested buyer
If you have a property with a smaller than normal pool of in terested buyers (like a one bedroom
condo), you must convince the sales agent to show your property first
Pricing properties accurately is a must
Selling goes from slightly difficult to very challenging
Quadrant #2
The competition increas es but the buyers start to get a little picky
Listings are now expensive to maintain because time on market starts to increase
Listings become more plentiful and inventory in the \ '[LS grows
Price the property properly in this quadrant and you won't have to bonus the sales agent
M ake sure your agent accurately shows you the competition and listen to their sugges tions
At the end of quadrant #1, pricing properties accurately from the start becomes very important
Selling goes from very easy to slightly difficult
Quadrant #1
TO MAKE
A
24
MONTHS
The NorrIS Group 201 3
You are making more money per property, so why now allow your "team" agent to benefit as
welP (That's one investor's philosophy anyway)
It's a good bet that your margins in this quadrant exploded!
})
One good reason is to share the wealth
Why pay 3% to a listing agent in this qu adrant?
Even overpriced listings will get attention from buyers
A full time listing agent's dream is to have a ton of listing in this quadrant
Quadrant #4
There's too much work involved to start reducing listing commissions here
Buyers are still tentative, making listings still costly to market and a hassle to have as an agent,
unless they are priced correctly
Selling becomes gradually easier as the market comes off of the bottom to have a slightly positive
price Increase
Quadrant #3
How
to
buy marginally profitable deals in a hot market and let them "mature"
(V The "orriS Croup 2111.3
If the property is vacant, just rent the property for the current rental rate
usually the deal includes not raising the rent for a predetermined time
Sometimes the seller is more cooperative if they see that you won't abruptly change their tenant's
life
The rents are usually low, but will more than be offset by the increase in price
The purchased property comes witll a renter already occupying the property
2. Circumstance that allows for this to be a reasonable decision
If you have a great price increase, one house can sometimes be exchanged for multiple houses or
units
By allowing equity to grow, you can use the larger sale proceeds to payoff "keeper" houses
Allows you
Allo-ws you to retail less properties to make the same money
By holding, your profit could be multiplied five times in a year or two (if you are in the right
quadrant)
1. Why you would consider this method of dealing with purchased inventory
w;
How
TO MAKE
A
24
MONTHS
'The Norris Grou p 20 13
Do not do this in quadrant #2 for any property (Remember, these are not long-term keeper
properties, They were bought with the idea of selling them day one. You just held them to
maximize the profit)
Quadrant #2
I wouldn't try this in a marginal area or with marginal inventory in quadrant #1
Rent the property only month to month and keep an eye on inventory growing in the MLS
You run the risk of keeping the property into quadrant #2, so be careful
Quadrant #1
If the property needs major work immediately, save this technique for another property
If the property has location problems (i.e. war zone) then just wholesale the property and keep a
better one
New homes can work very well in the right quadrant
Stay away from pool homes as rentals
Condos work extremely well in the right quadrant
The easiest to sell properties later on will be the three and four bedrooms
In the right quadrant, you can keep almost any type of inventory and do well
3. Properties that are better to keep
~ ACADEMY
ll
DON'T SELL - HOLD
manufactured homes will work for this concept (don't push too close to quadrant #1 with this
inventory)
J ',ven
(e The l\!orris Group 2013
N ew condos work extremely well because they explode in price near the end of quadrant #4
New homes can work especially well for this purpose
Prices can accelerate more in the last two years of a boom than in all of the early years combined;
therefore, you can buy a property and practice "hold and let ripen" well into quadrant #4
Watch the affordability as it descends
Watch the inventory levels in the MLS
This is the quadrant to hold and let ripen
Quadrant #4
Keep in mind, price increases don't start in earnest until the next quadrant, and even then, it takes
years to really take off
Keeping and renting in this qu adrant means you could be holding this property for five years. Make
sure it's an area and inventory type where this will make sense
Quadrant #3
16.
,Q
to
investors
The '\1m ,.;, G roup 2013
You may get bought out by your partner and incur no selling costs
Either equit y sharing a property you currently own or putting up down payments for equity share
purchases can yield a high return
h stablish a re tail price at 100% of current value
Sell property yourself, thus, very low cost of sale
You will get referrals
You get to carefully choose the occupant-p ar tner (much like choosing a renter)
The payment the occupant-partner is willing to make will exceed the rent potential of th e property
You can partner with owner-occupants on new houses when builders won't sell
The price you establi sh may already give you a very good profit
The occupant-partner has a vested interest in the care of the investment
You hand off maintenance to the occ upant-partner
You remain 50% owner
1. Why you would consider selling under an equity share agreement
TO MAKE
A
They don't have enough money for the down payment

They want to build equity instead of tossing money away
They see other people are doing well in real estate and feel left behind
They won't be paying any monthly payments on the down-payment portion of the purchase
They do have good credit, but want a payment that's reasonable (no PMI)
They have no tax write-offs
MONTHS
They are currently a renter and want to own
24
2. Why someone would be the occupant-tenant:
A CADEMY
How
EQUITY S HA RE TO O WNER O CCUPANT
$ 250,000
S 65,000 short term gain/ no 1031 exchange possible
Purchased for
Total profit
S 350,000
S 82,000 or $ 41,000 each partner
Original sales price

Net from sale
T he Norri s C wup 2013
This example does not take into consideration any pay down of principle or closing costs in
transaction #1. Both closing costs and pay downs would be minimal and probably be a wash.
to $141,000 by delaying the closing two years
432,000
Gross profit
~ 65,000
48,000
Sales costs
Your net has gone from
$ 480,000
S 100,000
S 250,000
Sales price:
Property value in two years:
My cost basis
My equity going forward
Sales price to equity partner:
315,000
350,000
Net
Equity share 2003-2005:
Sales costs
35,000
S 350,000
Sales Price:
2003 sale:
E xample of a property bought wholesale, sold under an equity share agreement in 2003 versus just
selling the property in 2003:
Example:
17.
TO MAKE
A
24
MONTHS
Net
$ 38,500
77,000
I wo uldn't make this arrangement during quadrants 1-3

I do not want partners when real estate is essentially flat
Wait for the explosive quadrant #4 to roll this one out. It will be worth the wait!
Quadrants 1-3
In two years you have turned $40,000 into $78,500 (96%)
50% of net
Cost of house
355.000
-~
Nct from sale
Cost of sale
48.000
$ 432,000
$ 480,000
Sales price
Plan to sell house by July 2005:
$ 40,000
5.000
Total closing costs

Total invested
35,000
$ 350,000
Down payment
Sales price
o T he Norris Group 2013
Example of you putting up a 10% down payment on a new home to be finished in six months. The
new home purchase is January 2003; the closing date July 2003.
Example:
3. You can also make a lot of money being an equity share partner purchasing new homes
How
EQUITY SHARE TO OWNER OCCUPANT
Everyone leaves the deal happy

You'll have a lot of willing people to choose from
You time your exit by watching the afford ability percentage
}}
The later you do this in quadrant #4, the shorter the agreement can and should be
. The Nun:;s C; roul' 2013
The earlier in quadrant #4 you do an equity share, the longer the agreement needs to be to have
maXImum gam
Because you have timed this partnership well, your equity share partner may well be in a
position to buy you out
The odds are very high this will work
I>
You take most of the risk out
By doing this only in quadrant #4:
You want to have explosive upside potential, a very motivated partner who can't buy a property on
their own
This is the perfect quadrant to implement this selling system
Quadrant #4
17.
N;

Bruce Norris How To Make A Million Dollarss Maximizing The Next 24 Months

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~~* ACADEMY

17. Equity Share to Owner Occupant ................................................................................. 121

16. Don't Sell- Hold............................................................................................................ 117

15. Using a Full-Commissioned Broker.......... ......................................... ....... .................... 113

14. Option Land Banking .................................................................................................. 105

13. Big Yard and Lot Splits .................................................................................................. 101

12. Manufactured Housing On Its Own Land .......... .......................................................... 87

11. Adding Square Footage To An Existing Home ............................................................. 85

10. Buying New Houses From a Builder ............... .............................................................. 83

9. Absentee System #2 ........................................................................................................ 79

8. Buying From Absentee Owners ..................................................................................... 71

6. Negotiating with the Seller.................................................... ......................................... 43

5. Grab Bag of Handy One Liners ....................................................................... ............... 39

4. Does Selling to an Investor Make Sense?......................................... .............................. 35

3. Seeing a Property for the First Time .............................................................................. 29

2. How to Determine the Value of the Property ................................................................. 21

1. A Basic Understanding of Different Types of Entities ..................................................... 7

The Business That Can Change Your Life ............................................................................ 1

Gilil;"'li" /I.'fotillliOil of RF '1LTOR f Ql),

California Unsold Inventory (In Months)

California Median Price

Prices are accelerating

T tw "Jorri s G roup 2013

2. How I know we are here?

1. Welcome to Quadrant Four!

Driven by p ent up demand

Driven by payment cheaper than rent

Driven by tax law changes

Driven by Wall Street's sudden interest

Driven by government policy

Driven by affordable payments

NODs vs. Sales

Driven by inventory levels not jobs

P The No rris C; ro llP 2013

I"f""_ Rut""b COlli/iii

SOlirce: SOIl,J;em C"Jijvmiti }{raj

MILLION DOLLARS MAXIMIZING THE N EXT

Mood shift in the news media

Driven by builders not creating their share of inventor

Easier and easier to sell

E..-'a/l' R em",!' C. ollllcil

I Ol/ra: j'n"lhml C(/(lfol1JliJ ReNI

Time fixes mistakes

4. What's great about quadrant four?

Single Family Home Construction

Learn how a builder thinks

I[" The "Sorris C;roup 20 13

Salim: Cali/a mia ASJocialiol! ofRF..-lI.TOR f.

Affordability chart hits historic low range

6. Leverage is a beautiful thing in quadrant four until:

Buy finished lots below replacement cost

MILLION DOLLARS MAXIMIZING THE N EXT

Anything that takes time is well rewarded

5. H ow to be rich by the end of q uadr a nt four?

Price/earnings ratio gets too high

The Norris Group California Mood-o-Meter

Moodometer reads equal to past highs

n 'l1" Norri. G roup 20 1.\

California Median Price to Median Household Income Ratio

T/1(' N orri r C lTlflp.

Prices of existing homes exceeds the new homes

Price of New Housing vs. Existing Housing - Southern California

:c> T he Norris Group 201 .,