Dealmaker

Dealmaker A Billionaire's Blueprint for Success

Author: Jerry L. Wallace Publisher: Cameo Publications Date of Publication: 2006 ISBN: 0-9774659-1-8 Number of Pages: 158 pages About the Author

The Big Idea “All you have to do is step up to the plate.” Jerry Wallace Jerry Wallace specializes in resort condominiums, hotels/motels and restaurants. His experience ranges from investment banking, stock brokering, timeshare sales, land and lot sales, custom home sales, construction project sales, project fundraising, real estate agent, commercial project originator, and developer.

This quote from Jerry Wallace pretty much sums up how he became the premiere Real Estate dealmaker out there. By stepping up to the plate, and taking risks, he was able to turn his humble beginnings into a billion dollar Real Estate Company. In this book, he presents us with his blueprints for achieving success in the fascinating field of real estate. After all, as he clearly points out, Real Estate is the best choice for investment there is.

He continues to launch the most incredible luxury condominium projects. His projects under development total over $4 Billion Dollars. He is committed to making his Associates, Investors, and Clients Super wealthy. As Jerry would say, "all you have to do is step up to the plate!"

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Dealmaker by Jerry Wallace

The Beginning Why Real Estate? Because, Jerry Wallace knows it's the best and most rewarding way to get rich. In fact, dealing with Real Estate is the most secure and productive investment in United States for several reasons. First, Real Estate is neither a commodity that rarely drops to zero in value nor does it dramatically fluctuates in value. Second, owning real estate has several tax advantages. Third, Real Estate has always secured America's wealth. Finally, most riches have been amassed through real estate investment. Interestingly, there is no other commodity that offers the same benefits as Real Estate. For Jerry Wallace, Florida was his jumping-off point, and until now, it remains as his primary market. He used to be real estate agent when he suddenly realized that it wasn't enough for him. He wanted to use his knowledge and experience help other people while making money at the same time. So he began with his first project which was the Majestic Beach Towers in Panama Beach, Florida. Today, most of his projects are in Florida, but he was able to replicate his success throughout America. Now, after all the hard work combined with knowledge and integrity, Jerry Wallace is now ready to share with the world what made him the success that he is today.

Right kind of Knowledge “Location, Location, Location!” is the most often heard three keys to success. But, for Jerry Wallace, it's not necessarily inaccurate. Instead, it's all about the deal. It's the deal that makes your vision possible, and most importantly, it makes your plans successful. He believes that creating the perfect deal is easy as long as you do it correctly. First, you have to make a plan. It's very important to put together a solid plan that outlines your project and the details involved. Try to think of all the stages you have to go through to pull of the project. From identifying the people involved to the places and things you will need to see your project accomplished, you need to be aware of the details. After making your plan, you can show it to someone trustworthy who can help you see your plan from a different point of view. It would be better if the person comes from a different field, because he or she can be helpful when it comes to asking questions and pointing out things you may have initially missed. Whatever your plan is, the important thing is to stick to it. Second, it's very crucial to know your product. If you are not knowledgeable about what you are offering, no one will be willing to invest in your project. In order to be knowledgeable, Jerry Wallace suggests these following things:

– Look at the units that are up for sale or rent. – Take note of all your observations, whether it's positive or negative, regarding [2]

Dealmaker by Jerry Wallace

the place. What are the available amenities? What is not being offered in the place? What needs to be improved? – Make a point to interview the individual rental managers and real estate agents who represent the property. Ask them all the questions you can think of in order to get a clear idea about the property. Armed with the right kind of knowledge, you can now impress your potential clients with your product knowledge. Making a good first impression and having the confidence to pitch the deal are sure ways to gain your client's trust. After all, people are more willing to trust real estate agents who know what they are talking about. Third, it is also important to gain foundational knowledge-- or everything you need to learn in order to gain a basic knowledge about the Real Estate business that will serve as your foundation for future projects. Foundational knowledge begins with the following traits: strong word processing skills, speed reading, good note taking skills, time and motion study, moderate computer skills, and basic accounting skills. Gaining this type of knowledge allows you not to become too dependent on others for their help in various areas of Real Estate business. It may be important to work with others, but it's also essential to know every aspect of the business.

Secrets to Victory Business guru, Peter Drucker, once said, “Time is the scarcest resource, and unless it is managed, nothing else can be managed.” Jerry Wallace lives by this rule. He is usually up and about at 5:00 AM in the morning, and proceeds to work around 10 hours a day. What's even more amazing is that despite his busy schedule, he is able to create quality time with his family. For him, managing your time properly is one of the secrets to victory in the business. First, try to study your everyday routine and daily habits. Think about all the individual and measurable movements you do. For example, you have a habit of tapping the pencil before writing. This action is pretty simple, but it also contributes to wasted time. Once you have determined what your daily routine and habits are, it is easier to identify which are unnecessary. Eliminate what is unnecessary, and you'll have more time to focus on what is important and necessary. Second, try to organize your time well. Some people may be into creating a to-do list, while others may not. Whatever the method is, just make sure it's effective and easy for you to follow. Third, do well by doing well. Jerry Wallace firmly believes that you succeed by helping other people succeed also. Fourth, build your reputation. It's very important to be known for being an honest and forthright businessman. To be successful in the business, you need to have a reputation for high integrity, so that people would be willing to do business with you.

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Dealmaker by Jerry Wallace

Fifth, maintain a balance in your life. Taking a break from all the work is actually helpful to your success. Learning how relax allows you to enjoy the journey more. Sixth, socialize with the right people. Jerry Wallace believes that being with the right group of people, who have the right knowledge and the character, can help you move ahead in both your professional and personal life.

The Deal Now that you know the secrets to victory, it's about time to find out what Jerry Wallace thinks is the best way to create that perfect deal. First, it's all about negotiating that Win-Win deal. Remember that a win-win deal allows everyone involved to benefit from the project. Everyone should feel that they came out of the negotiations with a great deal. Therefore, it's important to let the client win on your terms. Try to anticipate their needs, questions, and concerns in order for you to feel that you have given them the best deal possible. Second, be careful not to move things quickly. Do not rush your potential client by agreeing quickly to everything he or she says. They might start to wonder if the deal is worth pushing through with. Third, study the contract. Drafting the contract is a crucial step in closing the deal. Creating a contract that offers desirable terms in payment is more attractive for potential clients. Fourth, keep in mind the 1031 exchange. The 1031 exchange is an excellent option for those who want to sell their rental property, but fear the tax issues that are attached to it. This allows the seller to defer taxes on the profit made from selling the investment real estate. It's important to keep the following requirements in mind: – The properties being bought and sold must be of like kind. – Seller has 45 days from the date of closing on the old property to identify up to three new properties that he or she is considering for purchase. – Seller has 180 days from the date of closing to close the purchase of one of these properties under consideration. – By law, the money received from the sale of the first property must be held by a “Qualified Intermediary.” – The titleholder of the old property has to remain the titleholder of the new property. The seller cannot touch the money received from the sale. – Since the seller's aim is to avoid any taxable gain, he/she must reinvest all cash proceeds and buy a suitable property of equal or greater value.

Key Ideas to Remember: – Think Ahead – Analyze and anticipate your opponent's motivations and objectives. – Make your initial offer a little less than the amount you're willing to pay, and a bit lower than you think the other side will accept.

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Dealmaker by Jerry Wallace

The Way to Success Being successful is a badge of honor. In order to help attract success, Jerry Wallace follows these four steps: 1. 2. 3. 4.

Market Yourself Be Memorable Be Bold Think Big

One way to market you is to create a buzz surrounding you. This may entail using the press to your advantage by sending articles about your success, or doing something that will surely be talked about. Another is to be memorable. Try doing something outrageous. It doesn't necessarily have to be extreme just something that is considered new and innovative. This will grab people's attention, and turn the focus on you. Furthermore, be bold. Being bold requires you to take chances and some risks. In order to be successful, bold steps are indeed necessary. Use your careful planning to your advantage by going out there and telling people about it. After all, you will never really get that deal if you don't try. Finally, think big. It was Robert Browning who once said, “A man's reach should exceed his grasp.” There's nothing wrong with taking on small projects and deals, but don't be afraid to think big. Take a risk. Try going for the big deals that are worth million and even billions, because the bigger it is, the higher the profits and the easier to sell it. After all, that's how Jerry Wallace got his start. Important Things to Remember: – Be confident and proud of your deal-making status – Learn your product. – Proceed positively; believe that what you're presenting is viable. – Publicize – Think big; go after the bigger deals which are both easier and more profitable.

The Blueprint Getting Organized In order to get your plans done, Jerry Wallace believes you need to get organized. There are several ways to do this: create a document book, create a project overview book, and compile a land buying guide. In creating a document book, you have to organize and outline the most important details. This helps you in soliciting for bids, making sales pitches, or in applying for a loan. Meanwhile, creating a project overview book entails you to include the following information: renderings, drawings, schematics, site plans and layouts, floor

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Dealmaker by Jerry Wallace

plans, a copy of the amenities, and more. As for the compiling a land buying guide, you need to keep in mind possible questions that may arise. Questions regarding land maps and surveys, property rules and regulations, utilities and amenities, and more need to be listed down, so that you will be ready for any inquiry from potential clients. One very important thing for the seller to do is to keep in mind several things the buyer expects. 1. 2. 3. 4.

The buyer expects a reasonable selling price for the property. The buyer keeps in mind the availability of the utilities. The kind of subdivision lots being sold. The buyer looks at the property. It's important for them to have a visual before deciding on the property. As much as possible, offer them quality pictures of the property, the houses, and the surroundings. 5. The buyer also tries to discover any homeowner's association in the area. Identify Your Market Jerry Wallace's famous words, “You need to become a master of the game!” Now that you know the secrets to victory and the blueprint for creating your deal, you can focus on identifying your market, and unveiling your game plan. First, you need to be aware of what will make the most money, and then work towards it. It usually is easier to sell a more expensive product, than it is to sell a much cheaper one. Expensive products tend to attract investors with more money so you end up doing less work, but for a higher reward. In Jerry Wallace's case, after careful consideration, he chose the preconstruction condominium market. Of course, you need to become a power broker before your plan comes to fruition. Here are 10 simple rules for achieving that goal. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Acquire a real estate license. Familiarize yourself with your own real estate market. Know the market value of the product you want to sell. Look for experienced people who can help you with key areas of your plan. Choose a property and/or parcels of land. Determine the highest and most efficient use for your property. Determine the best layout for the project on the land. List all the amenities you want to include in a project. Take your ideas to a reputable architect. Prepare a proforma.

Finding the Ideal Location The deal may be considered as the key to success, but don't ever brush aside the importance of finding the ideal location. Since you have identified your market, it is easier to find the location you are looking for. Keep in mind who your potential clients will be. Try to see where the good locations are for condominiums and other buildings you desire for your deal. Aside from considering the state and area, observe the

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Dealmaker by Jerry Wallace

businesses there, the town upkeep, and even the smallest details like sidewalks and streets. These things actually help determine property value. Marketing Your Project Knowing how to market your project can make or break your deal. It doesn't matter if you have a great property and have a good deal. If you can't market your project, success won't come knocking at your door. Attracting Investors Jerry Wallace believes there are three ways to attract a potential investor. First, an investor can loan money to the company in return for a percentage of the profit. This is usually hard to come by so it might be easier to bring in the investor as a partner first and give him second mortgage on the land. Second, you can have the investor buy the land to be used in the project. You can offer to have him purchase the land, and at the same time, give him a new contract to buy the land from the investor at a much higher price. Finally, you can negotiate with the landowner regarding the price. Make sure you know everything about the project in order to use this knowledge as leverage. For example, if you are aware of possible reasons the project may fail due to lack of time on the contract. With this in mind and armed with your proforma, you can already begin negotiating for the price you can afford to pay. Securing Funds Securing funds or the seed money is important to see the project through, but more often than not, finding funds is the hardest part. The seed money is not used for construction; it is used for the soft costs and any land carrying cost required before the construction loan issue. In finding an investor to give the seed money, you need to keep in mind several reasons. First, the investor is a passive one. Second, the investor is knowledgeable about real estate. Third, the investor may have the political influence to get permission for the project. Finally, the investor may be a good developer with experience. Jerry Wallace prefers either the passive investor or the qualified developer.

Conclusion This man knows what he is talking about. After all, Jerry Wallace has been dealing in Real Estate for years, and his deals have become legendary and much admired. Now, he aims to show people how easy it is to succeed in the business just like him. As long as you follow his blueprints for success, then you already have increased your chances. However, his recipe for success would not be complete without taking into consideration the most important factor of all-- people. Here are his most

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Dealmaker by Jerry Wallace

important tips for dealing with people: Do: 1. 2. 3. 4. 5.

Never say something negative about someone. Never break your promise even if it's unfavorable for you. Always pay back what you owe. Always be on time for meetings. Always honor the agreement/commission amount you agreed upon by you and your partners/broker/agents. 6. Get all your agreements in writing and signed by both parties in order to avoid potential conflicts. Avoid: 1. 2. 3. 4. 5. 6.

People who cheat. People who lie. People who do not pay their debts. People with harmful vices and addictions. People with uncontrollable tempers. People who are unethical in all their doings.

Follow these rules, and you'll make it big in real estate. Don't worry. It will work for you as it did for Jerry Wallace. Why? For success comes to people who dare risk it and step up to the plate.

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