Subject: FW: TrackerBASE Report: PRES Donald Trump: Real Estate Goldmine, Audio Disk 1 Clips E-H 3/17/2016
From: "Sorbie, Sean" <[email-masked]>
To: Research_D <[email-masked]>
Date: Thu, 19 May 2016 17:44:07 -0700

________________________________
From: American Bridge Tracking
Sent: Thursday, May 19, 2016 8:44:03 PM (UTC-05:00) Eastern Time (US & Canada)
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Cc: Colin Smith
Subject: TrackerBASE Report: PRES Donald Trump: Real Estate Goldmine, Audio Disk 1 Clips E-H 3/17/2016

Tracker Event Debrief Form

TO: PRES Tracking

FROM: Colin J Smith; Joe Gallant

Location: Trump University, NY

Date: 3/17/16

RE: Donald Trump: Real Estate Goldmine, Audio Disk 1 Clips E-H- 2016-03-17
_____________________________________________________________

Event Details:  Audio from a Trump University CD

Attendees/Audience: Gary Eldred, John Ward

Press: None

Summary of Event: Trump did not feature in this part of the Trump University CD. Most of it was basic real estate market advice, but Clip E has a discussion where Gary Eldred talks about the benefits of foreclosures to investors, while striking an empathetic tone about the impact foreclosures have on the lives of those affected.

Key Points: Clip E:

0:00 Q: Are there other factors that drive this, like on the bank side?

GE: Today with so many exotic financing, I’m looking into the future that foreclosures can offer. Foreclosures are bad but it’s a reality that they create real estate opportunities. People Are still going to lose their jobs, it’s a turbulent economy, interest rates are going to go up at some point. We will have people who get too much credit card debt, too much debt contributes to foreclosures, we’ve seen that in the last few years and will unfortunately result in distress for home owners in the near future.

Q: Does the increase in adjustable rate mortgages contribute to this?

GE: They’ve contributed a great deal. A little while back, short term mortgage rates had reached at least the lowest level in my time, people were doing deals at 2-4%, now the Fed is slowly increasing rates, what was 1% is now 3.75% and adjustable rate mortgages are based off that, meaning rates might increase as high as 6-7%. That means within time people’s mortgages might increase about 50% and people will come under stress to make payments.

Q: Because a tiny increase to the rates has a huge impact on the actual dollar payment.

GE: Absolutely, if the rate goes from 3-5% that sounds like no big deal 2% increase, but that’s a 66% increase. MOst have caps in them meaning the lender can’t immediately jack up payments, but it will go up little by little over the next few years. More people will be under stress.

Clip F:

0:00 Q: Do the fortunes of the lenders impact this?

GE: Look at the balance sheet, and it’s assets minus liabilities. Loans are assets to lenders, they report good loans as assets, more good loans the more equity they have, as good loans turn bad they have to write off some of those assets and that reduces equity and then the regulators flock in asking about the bad loans thinking it’s not healthy and the banks become eager to sort out loans. Banks are earning near record profits so they’re not eager in many markets to do the deals, but as we move forward, and this why investors need to monitor markets and banks, even if CitiBank is strong now, the average small bank might not be so well off, so networking is important.

Q: Many people teach investing in this field, how do you approach this

2:15 GE: My attitude is not to sell products but help people learn to make money in real estate without too much risk. Many people doing infomercials and other CDs want to hype products, make it seem easier than it is because they want to sell products. I don’t even call pre-foreclosure field a real estate investment but a business because it takes time and skill to do it. Too many infomercials talk about buying foreclosures cheap, flipping properties within weeks and pocket huge money, but it’s work. When you build up a network and see the market you can build up an income, but don’t believe you can just jump through this and make huge deals, it requires more work and knowledge.

CLIP G:

0:00 Q: We’re talking business here

GE: It’s a business that someone needs to commit just as with any business

Q: So what would I need?

GE: First you need to inventory resources, how much time you’re willing to put into this, how much money you have, do you have someone who could provide funds, what’s your credit like, what’s your borrowing power? All this can be set up as credibility, you need to establish this for all parties involved, that you can do what you want to do. The myth on foreclosures is that you can just get started with nothing. You need knowledge, somebody with cash, and some credit. No lender will work with you without all that. You won’t succeed if you don’t put the time in. You need to execute, it’s not just a matter of giving an offer. We want people to approach this realistically and what’s required of them and that’s why you can succeed. People give up when they find out first hand that it’s not so easy, so if you’re prepared up front with the reality you’re much better positioned to move forward and execute.

Clip H:

0:00 Q: What kind of time is required?

GE: You can work as few as 5-10 hours a week. If you do one foreclosure every few months, that’s realistic. Doesn’t mean every week that much time, sometimes you might just look at market information, other weeks maybe 10-15 hours working with the other parties. If you want to do more than that it might be a full time job. Many people I know start out doing one deal every few months, they like it, get more involved and do it more frequently. You can vary it depending on your time, but it requires time

Q: Can you give a sense what type of finance one needs access to?

GE: Depending on what your price range is. In my hometown in IN, I looked at prices in the 15k range in CA that would be laughable. It depends on the market and properties. Most areas in the US you’d need 10-25k of working cash. That’s going to come into play because the lender will want to see all the past payments paid, the attorney fees paid, everything brought current. You’ll have to pay some cash for title searching, for contractor estimates, so I can’t imagine going forward with anything less than 5-10k on the very low end markets, for 200-300k high end markets you’d need probably 25k.

Digitized Video File Label: 160317_JEG_656

Clip Labels: 160317_JEG_656_E

160317_JEG_656_F

160317_JEG_656_G

160317_JEG_656_H