Real Estate Investor s Workshop

Real Estate Investor s Workshop the software solution for the true real estate investing professional Property Analysis Creative Financing Personal Financial Statement Automated Offers, Contracts and Agreements Lease Option Sandwich Lease Option REI Workshop, Page 1

Welcome Thanks for purchasing Real Estate Investor s Workshop. We are convinced that using this software solution will save you time and money by quickly and accurately evaluating the potential of a real estate investment. We are here to help. If you have any questions, comments, or suggestions, please contact support@reinvestorsworkshop.com. We will get back to you within 24 hours, usually much sooner. Terms In this manual, we will refer to the software as REIW. This manual assumes you know how to use your computer, including basic functions like pointing, clicking, printing, saving files to specified locations on your computer, and locating files that have been saved to specified locations on your computer. While the screen shots used in this manual are from Macintosh OSX, Windows screens will only differ based on the locations of the window decorations (close, maximize, minimize) and specific operating system decorations. Menus and buttons Each module has it s own set of menus that correspond to buttons available on the page. Feel free to explore the menus. REI Workshop, Page 2

function: Below are the buttons you will see and their corresponding Help Dashboard New Open Save Print Create PDF Analysis Zoom Copy to Clipboard From left to right: Help: brings you here, to the help module. Home: takes you to the REIW dashboard Create Blank Analysis: Allows you to clear the workshop and start with an empty slate. You will be prompted to save the analysis you are working on. Open: Open an existing, saved workshop. You will be prompted to save the analysis you are working on. Save: Allows you to name and save the workshop you are working on. Print: Prints the current workshop report. PDF: creates a savable report file in pdf format for you to file on your computer for later review or printing. Analysis: Opens the Property Analysis in the Property Analysis Workshop. Zoom: enlarges windows where it appears. Clicking again will return the screen to the default size. Copy to Clipboard: In the Offers and Contracts Workshop, clicking this button will copy the current document to your clipboard for pasting into the word processor of your choice. REI Workshop, Page 3

Installation Downloading the software Windows and Macintosh OSX users: 1. Download the software from the link provided in the email you received when you purchased the software. An internet connection is required. Make sure you know into which directory on your computer the software is being downloaded. 2. Open the installer by double-clicking on it. Windows Users: The name of the file download is REIW setup.exe. When you double click the file, you might be presented with a notice alerting you that an unknown publisher wants to make changes to your computer. Click Yes or Allow. REI Workshop, Page 4

The setup program will begin to run. By default, the program is installed in the Program Files directory. Simply, keep clicking next to install REIW. Click Next Default program location. Click Next. Program Name. Click Next. Desktop Icon? Choose then Click Next. There will be another screen that verifies everything. Click Install, and REIW will be installed and the following screen will appear. REI Workshop, Page 5

Click Finish, and the software will launch. Macintosh OSX Users: The name of the file download is RE Investor's Workshop.dmg. When you double-click on the file, a window will open with the installer in it. Double click on the file in the window that opened. NOTE: There is a possibility that if your Macintosh is set to only allow applications downloaded from the App Store that you won t be able to install until you change your permissions in System Preferences : Security & Privacy : General : Allow apps downloaded from. See your Macintosh documentation for details. The setting for installing REIW must be System Preferences : Security & Privacy : General : Allow apps downloaded from : Anywhere. When you double click RE Investor s Workshop.pkg you will be presented with the following screens. REI Workshop, Page 6

Enter your admin name and password Click Install and the installation will proceed and the following screen will let you know you have successfully installed REIW in your applications folder. That s it. Your software is installed REI Workshop, Page 7

Let s Get Started Launch REIW Windows Users: Launch the software from the Start Menu. Macintosh Users: Launch the software from the Applications folder. Windows and Mac Users: If this is the first time you have launched the software, you will be asked to enter your username (the email address you provided when you registered), and a Registration Key. Both the user name and the Registration Key that need to be entered were provided in an email sent to you. If you didn t receive the email after you purchased REIW, send an email to support@reinvestorsworkshop.com with your information and we will quickly provide you with the information. REI Workshop, Page 8

Enter the user name and registration key exactly as they appear in the email. Click Register. You will be asked to accept the software license agreement and when you do, the software will load. The Dashboard The first screen you will see is the Dashboard. You can reach any of the REIW Workshops from here. You can get back to this Dashboard by clicking the Home button in any module. There is a menubar for the Dashboard that contains menu items that allow you to open the various modules, too. The menu also allows you to get Help, set Preferences, and Quit or Exit REIW. Click the Property Analysis Workshop button (or choose Property Analysis from the REIW Workshops menu) to open the Property Analysis Workshop. REI Workshop, Page 9

Property Analysis Workshop Property & Investor Entry The initial screen for the Property Analysis Workshop is Property & Investor Entry. Here you enter information about you (the investor) and the investment property for analysis. REI Workshop, Page 10

The information will be used on the analysis printout. Most of the entries are obvious, however the following is an explanation of the entry fields that might not be so obvious. Marginal Tax Rate: refers to the percentage rate of your personal (or your business, if your business is the investor) income tax. If you live in a state and/or municipality that has a separate income tax rate additional to the federal rate you expect to pay, add them all together to get a single rate. Obviously, a lot of variables determine the ultimate rate you pay, but this should provide a good indication of your tax consequences as the taxes paid on your cash flow or ultimate profit upon sale are based on this rate. In the US, profits gained on the sale of real estate within one year of purchase are taxed at the marginal rate; profits made after the first year are at the capital gains rate (entered on the Loans & Assumptions page of Property Analysis Workshop). Residential or Commercial Property: Choose either Residential or Commercial Property to let REIW know which depreciation rate to use. The depreciation rates are set on the Loans & Assumptions page of Property Analysis Workshop. Usually, the factor determining the difference between residential and commercial property is the number of units. Properties with 5 or more units are usually considered commercial. Market Value: Enter the value of the property here. The value is what the property should be valued at in the condition that you will eventually have it prior to selling or renting it. Amount Depreciable: Since land isn t depreciable, subtract the value of the land from the Purchase Price to get the Amount Depreciable. Initial/Closing Costs: Add all out-of pocket costs (doc fees, assumption fees, loan fees, etc.) and enter them here. These are used to figure your Cash on Cash Return. Buttons Along the top of the page are a series of buttons. From left to right, the buttons perform the following functions: Home (return to the REIW Dashboard) Add Analysis (creates a new, empty Property Analysis) REI Workshop, Page 11

Open Analysis (allows you to open a previously saved Property Analysis) Save Analysis (allows you to save the analysis you are working on) Analysis (opens the analysis based on the current property for viewing and printing.) All the button functions are also available under the Analysis Entry menu Show More Property Information, Photos & Map (connects with Zillow, Google, and allows your to entry descriptive information about the property that will enhance the analysis that you will present to other potential investors or money sources). Click the button Show More Property Information, Photos and Map. Show More Property Information, Photos and Map There are four screens in this section: Description, More Info, Photos, & Map. Description: there are two entry fields here. One is for a headline and the other is for a detailed description of the investment property. Along the left is a sample headline and description. Enter your own in the white, editable fields on the right. REI Workshop, Page 12

More Info: Here you can link to Zillow and populate the information under the Provided by Zillow logo. Click the Update Zillow Info button at the bottom right of this screen to get the information. If you aren t connected to the internet, or the address isn t understood by Zillow, the information will not be returned. If you are sure you are connected to the internet, try going to zillow.com and finding the property and entering the address that Zillow uses in the Property Address of the Property & Investor entry page, and try connecting clicking the Update Zillow Button again. It should work. In the white fields along the right, you can correct information provided by Zillow, enter it yourself if Zillow didn t provide it, or put any other pertinent information there. Photos: Click the Update Google Streetview image to get a photo of the property from Google Streetview, or click Import Property Photo to provide your own photo. To use Google, you must be connected to the internet to get the photo. It is saved with your property after that. The photo is used in your presentation analysis. REI Workshop, Page 13

Map: Here you can connect to Google and get a map of the investment property s location. Click the Update Google Map button to get the map. Click the blue X in the upper right of the screen to return to the Property Analysis Workshop entry. Close Show More Property Information, Photos and Map by clicking on the blue circled X in the upper right hand corner. Open the Loans & Assumptions Entry by clicking on the Loans & Assumptions Entry button in the top center of the Property Analysis Workshop, or choose Loans and Assumptions Entry from the Analysis Entry menu. REI Workshop, Page 14

Loans & Assumptions Entry There are two sections for entry on this page: (1) Loans on Property, and (2) Analysis Assumptions. Loans on Property All entry for Loans on Property is handled in the Creative Financier Workshop. To use the Creative Financier Workshop click on the Creative Financier Workshop button, click on the Create a new Loan (in CFW), or choose Creative Financier from the REIW Workshops menu. They all perform the same function: taking you to the Creative Financier Workshop. There you will create a financing structure, name it and assign it to the current analysis. See the section on Creative Financier Workshop in this documentation to learn how to use it. Once you have created one or more loans through the Creative Financier Workshop and assigned them to this analysis, they are saved with the analysis. REI Workshop, Page 15

Loans assigned to the current analysis are listed in the Loans Available list. Select a loan in the list to view its amortization in the grid below. Clicking on the ( ) button below the list will delete the selected loan from the current analysis Clicking Show Yearly Summary will toggle the grid to show a yearly amortization. Clicking Show Entire Amortization will show the entire loan schedule. Clicking Create a new Loan (in CFW) will open the Creative Financier Workshop The particulars of the loan are listed to the right of the Loans Available List. Those particulars are visible when a loan is selected in the list. They include: Principal, Rate, Number of Years, Payments Per Year, Interest Only, Payment, Loan Start Date, Balloon, and Balloon Date. Analysis Assumptions Factors and assumptions that have an effect on the cash flow and profitability of a potential investment and are used throughout the analysis presentation need to be entered here. There are two assumptions to calculating an eventual sales price: Calculate Sales Price from: Market Value or Purchase Price. Normally you would choose Market Value because you should be purchasing under market value. Calculate Sales Price from: Capitalization Rate or Inflation Rate. Calculating an eventual sales price from a capitalization rate is usually reserved for larger commercial investments. For residential investments or small commercial investments, most of the time calculating from the inflation (or appreciation rate, to put it another way) makes more sense to potential investors, buyers, or lenders. Sales Cost %: This would include a broker commission paid on sale, and any other fees that might be assessed upon the ultimate sales price. Add those commissions, fees or taxes together and enter the sum here. Inflation Rate: The rate at which you expect the property to appreciate by each year. Vacancy Allowance: Enter the expected annual vacancy allowance here. Additional First Year Vacancy Allowance: Many times improvements and fix ups will not allow a property to produce rental income for a period of time right after the purchase. That additional vacancy during the first year should be entered here. REI Workshop, Page 16

Capital Gains Rate: the tax rate paid for capital gains upon sale. In the US the capital gains rate is usually lower than the Marginal Rate, but is only applied if the property is held longer than a year. Commercial Depreciable Years: the number of years the tax code allows you to depreciate real commercial property. The number of years commercial property is depreciable is usually more than the number of yours you can depreciate residential property. Residential Depreciable Years: the number of years the tax code allows you to depreciate real residential property. The number of year residential property is depreciable is usually fewer than the number of yours you can depreciate commercial property. Open the Income & Expenses Entry by clicking on the Income & Expenses Entry button in the top center of the Property Analysis Workshop, or choose Income and Expenses Entry from the Analysis Entry menu. REI Workshop, Page 17

Income & Expenses Entry There are three sections to the Income & Expenses entry page. 1. Estimated Monthly Expenses entered as a monthly amount 2. Initial/Immediate Capital Improvements this is a one time expense and should include those items that you are fixing, improving, or repairing as part of getting the property ready to flip or rent. 3. Monthly Income entered as a monthly amount and should include all sources of income your would expect from renting or leasing the property. REI Workshop, Page 18

Each of the sections feature an editable label, and a field where the amount is entered. You can assign a label to each of your income, expenses, and capital improvements, and that label and it s associated amount will be saved with the analysis. If there are not enough entries available to enter all of your income sources, expenses or capital improvements, the label can denote a group of expenses. For example, instead of listing Water, Electricity, Sewer as separate expenses, you could simply enter Utilities and add those expected monthly expenses together to enter into a Utilities amount. At the bottom of the list for Initial/Immediate Capital Improvements is a entry field labeled Annual Ongoing Capital Improvement Expense. In this field you would enter the amount you expect to spend each year on an ongoing basis on capital improvements. If you don t expect to spend anything after the initial expenses you listed above for, say, three years, enter one-third of that amount and the analysis presentation will show that a third of that amount is spend each year. At the bottom of the page are three entries that allow you to show the amount you expect expenses, capital improvements and income to increase each year. Setting these increase amounts will show that while expenses, etc. for year 1 might be $500 a month, during year two, increase those expected expenses by the amount you entered into Yearly Expenses Increase %. Enter your expected increases for capital improvements and income in the same way. REI Workshop, Page 19

Once you have finished entering all the information on the Investor & Property Entry page, the Loans & Assumptions Entry page, the Income & Expenses Entry page, and on the four pages of Show More Property Information, Photos and Map, you can run the Analysis. Actually, you can run the Analysis anytime you want. It runs quickly and computes quickly so, don't be afraid to open it at any time to see the effect of a change. Open the Analysis by clicking in the Analysis button it s the top right button on each of the Property Analysis Workshop pages. Or choose View and Print the Analysis from the Analysis Entry menu. REI Workshop, Page 20

adjusted. Initially, you will see the screen below, where several settings can be Cash on Cash Return the two choices are figuring the Cash on Cash return using the down payment only, or all initial costs, which would include all the Initial/Immediate Capital Improvement Expenses that you entered in the Income & Expenses Entry page of the Property Analysis Workshop. It s your choice analyze the property one way, and then change the setting and reanalyze it the other. The Analysis Date you can change the date on which to start analyzing the property here. That allows you to create an analysis and update it whenever you want to reanalyze. The Loan(s) Start Date(s) for each loan, you can modify the start date without having to go back to the Creative Financier Workshop. This is useful if you entered a loan with a start date that coincided with the analysis date. If you are assuming a loan and entered the original loan information, you wouldn't want to change the date for that loan. Next, click on whether the Analysis should use the dates set here, or the original dates. Then your Analysis will open. REI Workshop, Page 21

The Analysis The Analysis is a multipage document that can be printed as a presentation to a potential partner, investor, or lender to show the degree to which you have analyzed the property. The Analysis includes: 1. Cover page (pictured above) with the specifics about the property, the photo of the property, the investor information, the description that you wrote of the property, and the information, if found, from Zillow. Scroll the page to see its entire contents. REI Workshop, Page 22

2. Income and Expense page with the income, expenses, capital improvements, loans and other assumptions you entered through the Property Analysis Workshop. At the bottom of the page is a textual version of many of the assumptions you set in the Property Analysis Workshop. 3. Cash Flow Analysis a ten year projection of the cash flows from this analyzed property, including Rental Income, Vacancy, NOI, Annual Principal and Interest payments, Capital Improvement expenses, all culminated in calculations for Cash Flow Before Taxes, Cash on Cash Return, and Cash Flow After Taxes. 4. Taxable Income Analysis a ten-year projection of the tax consequences of investing in the subject property. Whether positive or negative, the cash flow derived from investment income is subject to taxation as regular income. If you lose money on the investment during the first year or two, those consequences can be positive, REI Workshop, Page 23

reducing the amount you owe. The key is to know the effect of taxes on the investment, and that is detailed in this schedule. 5. Other pages you will want to review include: Supplemental Depreciation Tax Analysis Adjusted Basis Tax Analysis Taxable Capital Gain/Loss From Sale Analysis Cash Proceeds From Sale Analysis Amortization Schedules for the loans on the property. When viewing the Amortization Schedules, you will need to choose which Amortization Schedule you wish to view from the drop down menu at the top of the page. 6. To print the analysis, click on the printer icon at the bottom right of the page. 7. To save the analysis, click on the pdf icon at the bottom right of the page. Open the Creative Financier Workshop by clicking on the Creative Financier Workshop button in the bottom of the Property Analysis Workshop, or choose Creative Financier Workshop from the REIW Workshops menu. REI Workshop, Page 24

Creative Financier Workshop The Creative Financier Workshop creates full-featured payment schedules that are particularly useful when dealing with non-conventional financing sources. It is equally adept at creating amortization schedules for conventional financing. But its real power comes from allowing you to customize payment schedules quickly and easily in the following ways. 1. Create loans from 6 months to 40 years 2. Create Monthly, Biweekly or Weekly payment schedules 3. Back into any Payment, Rate, Term or Principal by knowing three of those four variables. REI Workshop, Page 25

4. Create Canadian-style amortizations (paid monthly, weekly, or biweekly, but amortizing twice yearly), or US -style amortizations (paid monthly, weekly, or biweekly, and amortizes monthly, weekly, or biweekly). 5. Create interest-only amortizations. 6. Create notes that balloon at a specific date. 7. Skip payments one, several, or any combination, contiguous or non-contiguous. 8. Additional principal payments one, several, or any combination, contiguous or non-contiguous. 9. Change the interest rate one time, per year, contiguous or non-contiguous. 10. Show the effect on cash flow and profitability of any and all of these payment customizations in the final analysis presentation. To create a custom payment amortization, follow these steps: 1. Enter the principal amount. That amount is either the amount you are borrowing, or the amount of the loan you are assuming. 2. Enter the beginning interest rate as a percent 3. Choose the number of years for the loan from the drop down menu. The ranges are six months through 40 years. 4. Check the Interest Only? checkbox if this is an interest only loan. NOTE: Checking Interest Only will automatically calculate the payment based on the criteria you have entered. It s ok; changing other criteria and then clicking Calculate next to the Payment field will update the payment amount. REI Workshop, Page 26

5. Check the Canadian Mortgage checkbox to have the schedule conform to Canadian amortization standards. Uncheck for US style amortizations. NOTE: Checking Canadian Mortgage will automatically calculate the payment based on the criteria you have entered. It s ok; changing other criteria and then clicking Calculate next to the Payment field will update the payment amount. 6. Choose from the Paid drop down menu whether the loan is paid Monthly, Biweekly, or Weekly. 7. Click the Calculate button next to the Payment field to calculate the payment based on all the settings you have made. NOTE: You can actually change any of the parameters for the loan, and click the Calculate button next to any of the four primary loan factors (Principal, Interest, Rate and Years) to solve for that factor. 8. Choose a Start Date for the schedule by clicking on the calendar icon next to Start Date. NOTE: Clicking the right or left arrow keys on either side of the month in the calendar will move the month forward or back. Clicking on the month at the top center of the calendar will show a drop down menu from which you can choose a year. 9. Check the Balloon checkbox if this loan balloons at a certain date. 10. Choose a Balloon When? date by clicking on the calendar icon next to Balloon When? NOTE: Clicking the right or left arrow keys on either side of the month in the calendar will move the month forward or back. Clicking on the month at the top center of the calendar will show a drop down menu from which you can choose a year. Remember, if your change any of the loan factors after you click Calculate for any of the primary loan factors, be sure to calculate the payment again, assuming you want the payment to be based on other factors. If you don t, the loan will amortize based on the factors entered, and may never amortize completely, or amortize sooner than the number of years you have chose. When you have completed setting up these initial parameters for the schedule, click the button Amortize the Loan. In the grid at the bottom of the page, you can view the amortization schedule. REI Workshop, Page 27

Using Advanced Loan Strategies Once you have entered the Basic Loan Information and clicked the Amortize the Loan button, review the amortization schedule in the grid in the lower half of the page. Scroll through it. But what if you want to change the payment after a year, or the rate, or add extra principal for a period of time? Thats why you use Advanced Loan Strategies. There you can customize a single payment, a series of payments, or several single or series of non-contiguous payments. To begin using Advanced Loan Strategies: 1. After you have amortized the loan by clicking the button, Amortize the Loan, check the checkbox labeled Advanced Strategies Enabled. (If the button is already checked, that means you haven't amortized the loan using the Basic Loan Info yet, so click the button Amortize the Loan, and the check will clear.) 2. Once Advanced Strategies Enabled has been checked, a subset of the amortization will appear in the grid just below the checkbox. It contains the payment number, the payment due date, the rate, the payment due and any extra principal. 3. Choose a single payment to modify by clicking on it. Choose a contiguous series of payments by clicking on the first in the series, scrolling to the final payment in the series, and holding down the Shift key while you click on it. Choose a non-contiguous series of payments by clicking on the first and holding down the Control key (Command key on the Macintosh) and selecting the subsequent payments you would like to add to that series. 4. With payment lines now highlighted, click on the button Edit Selected Lines. The following screen will appear: REI Workshop, Page 28

5. Now, you can change the rate, the payment amount or add extra principal, or any two, or all three. To change the rate, check the Change Rate(s) checkbox, and enter the new rate you want to apply to the selected lines To change the payment, check the Change Payment(s) checkbox, and enter the new payment you want to apply to the selected lines To add extra principal, check the Change Extra Principal checkbox, and enter the new extra principal you want to apply to the selected lines 6. Click Apply to accept the changes, or Don t Apply, to cancel the changes. The screen will close 7. If you modified those lines, you will see the modifications in the grid. 8. Continue and change as many payment lines or series of lines that you want. 9. When you have finished making those changes, click the button Amortize Using Advanced Strategies to apply the changes to the full amortization in the lower part of the screen. Note: Changing payments through using the Advanced Loan Strategies mechanism will fundamental alter the schedule. As an example, if you change a payment and make it lower that the corresponding interest rate would dictate, the loan might not ever fully amortize. Applying the new Amortization payment schedule to the current property analysis Regardless of whether you created a payment schedule with the Basic Loan Info alone, or used some of all of the Advanced Loan Strategies, now you need to do something with the payment schedule you created. You can either: 1. Save it to refer to it later To save it, click on icon of the floppy disk and give it a name and save it to your chosen location. By default, it is saved in the REIW Analyses folder in your Documents folder. 2. Print it REI Workshop, Page 29

To print it, click on icon of the printer. 3. Save a pdf of it To save it as a pdf, click on icon of the floppy disk and give it a name and save it to your chosen location. By default, it is saved in the REIW Analyses folder in your Documents folder 4. Or, apply it to the Property Analysis as one of its loans. Click on the button labeled Save to Property Analysis Workshop. You will be asked to give the loan a name. Make it short, like 1st Mortgage or 2nd Mortgage. When you return to the Property Analysis Workshop, you will see it saved with any other loans you have saved for the current property analysis in the list on the Loans & Assumptions Entry page. Don t be afraid to play around in the Creative Financier Workshop. The strategies and payment schedules you can create are endless. You can find a way to make a payment plan work for you and the seller. Open the Financial Statement Workshop by clicking on the Financial Statement Workshop button in the bottom of the Creative Financier Workshop, or choose Financial Statement Workshop from the REIW Workshops menu. REI Workshop, Page 30

Financial Statement Workshop The Financial Statement Workshop allows easily completion and compilation of your personal or business financial situation and presents it in a clear and concise report professional enough to submit to a lender, banker, partner or any money source. It is your financial score card There are nine entry pages in the Financial Statement Workshop: 1. Your personal or business information name, address, dependents, occupation, etc. REI Workshop, Page 31

2. Sources of Income your salary from your job, any 1099 income you receive, any other sources of income 3. Schedule A: Cash, Checking, Savings, Money Market and Investment Accounts bank accounts, and investment accounts like mutual funds, IRAs, 401Ks, etc. 4. Schedule B: Marketable Securities stocks, bonds, or other marketable securities 5. Schedule C: Accounts Receivable any debts owed to you, or outstanding loans you have made to others 6. Schedule D: Real Estate Owned your real estate investment property goes here, not your home or your second home. 7. Schedule E: Personal Residence(s) and other Assets here you enter your home(s), cars (if owned, not leased) and other personal assets of value. Any items of value that have loans against them might be entered here because those loans will need to be listed in Schedule G. 8. Schedule F: Life Insurance any life insurance policy that has a cash value or a loan against it should be listed here. 9. Schedule G: Accounts Payable list your mortgage loan(s), car loans and any other loans, charge accounts, unpaid bills and unpaid taxes here. Each entry page has the corresponded entry fields. Enter text into all the fields, and click Add to Schedule to enter it into the grid. To edit or delete an entry, double click on it in the grid. It will be removed from the grid and placed in the entry fields for you to edit or delete. To print the Financial Statement, click the print icon at the top of any schedule page. To save the Financial Statement as a report, click on the pdf icon at the top of any schedule page. REI Workshop, Page 32

Offers and Contracts Workshop The Offers and Contracts Workshop is an automatic way to quickly create agreements, letters, or almost anything that has a standard format that changes based on a limited series of variables. So, rather than opening that last letter or offer you sent, and finding the things that need to be changed, you can automatically merge the new info and create a new document. Once that document is created, you can print it, save it to REI Workshop, Page 33

a pdf, or copy it onto your computer s clipboard for pasting into your favorite word processor for further massaging. To use Offers and Contracts Workshop: 1. Choose the document among the listed documents and click on it 2. Click on the button Create the Merged Document. 3. A series of dialogs will open asking you to enter specific information to personalize the document. 4. Answer the series of prompts by clicking the OK button to accept. 5. When there is no longer a prompt, you have completed the document. 6. Print the document by clicking on the printer icon, or; 7. Save the document as a pdf by clicking on the pdf icon,or; 8. Copy the document to your computer s clipboard by clicking on the clipboard icon at the top of the screen. Open your favorite word processor and paste it in there form further modifications. The Offers and Contracts will be continually updated with more and more documents all of the time. Expect to see more; you will be notified REI Workshop, Page 34

by email when they are available and the process to get them into your REIW software. NOTE: the documents in the Offers and Contracts Workshop are not necessarily enforceable legal documents. The makers and marketers of REIW do not make any claims for the suitability of these documents or the the REIW software product in general for any particular purpose and cannot be held liable for the use or misuse of this software product. REI Workshop, Page 35

Lease Option Evaluator The Lease Option Evaluator allows you to conduct a evaluation of of a potential lease options before you invest before you invest. Information is entered under four areas: 1. Income 2. Expenses 3. Payments 4. Detailed Expenses Evaluation categories include: REI Workshop, Page 42

1. Gross Income 2. Money at Closing 3. Annual ROI 4. Net To You 5. Total Initial Cash Needed To use the Lease Option Evaluator, simple begin by entering the term of the option in the first field under Income. Press the tab key on your keyboard and advance to each subsequent entry field. Gray and green cells are calculated from the results of other entries and are not enterable. The tab key will bypass those cells. Green cells indicate important calculated or analyzed information. You can also evaluate Sandwich Leas Options by choosing the Sandwich Lease Option radio button near the top of the page. When you choose that button, a few of the questions change and the screen looks like this: To print the Lease Option Evaluator, click on the printer icon along the top of the page To save the page as a pdf, click on the pdf icon along the top of the page. REI Workshop, Page 43

To zoom the page so it becomes more readable on small monitors, click on the double arrows button at the top of the page. To return to normal size, click it again. To view or print the amortization, click on the magnifying glass next to the corresponding mortgage loan information. Thanks for using REI Workshop Software. If you have any questions, bug reports, or suggestions for improvements and added features, please contact us at support@reinvestorsworkshop.com. REI Workshop, Page 44