commercial real estate services p.o. box 997 snoqualmie, wa 98065 phone (425) 888-2993 fax (425)...

Property Services LLC

Commercial Real Estate Services

P.O. Box 997Snoqualmie, WA 98065Phone (425) 888-2993Fax (425) 888-3032Email: mike@mkps.netwww.mkps.net

Mike KirklandBroker

MK

Exploded Transaction

Steps

1. Pre-Acquisition ProcessDetermine Source/Amount of Equity InvestmentDetermine Desired Product TypeDetermine Desired Market(s)Determine Target Leverage RatioDetermine Acquisition Deadline, i.e., Trade Driven?Project Macro Market DirectionsEstablishment of Acquiring Entity Prepare Investor Financial PackageDetermine Debt PreferencesTest Debt Market Sources of Funds

2. Acquisition “Contracting” ProcessProperty Search CatalogueProperty PreviewPre-Offer AnalysisOffer Letter of Intent “LOI” or Real Estate Purchase and Sale Agreement “REPSA”Contract NegotiationExecution of a Binding REPSA

Transaction A-Z

3. Due Diligence ProcessProperty Specific, Physical and FiscalAbstract of REPSADue Diligence Task ListOrder Title Establish Title and EscrowAccumulation of Data-Transfer/Development Doc’sAssimilation of Data Into Study FormatAbstract of Leases and ContractsAnalysis of DataAssemble Vendor TeamPhysical StudyLender Survey and ApplicationTenant Credit and Financial StudyMarket Conditions StudyPreparation of Due Diligence Study ResultsSoft DecisionOrdering Third Party Reports

4. Decision AnalysisTenant InterviewsIdentification of Net Operating Income “NOI”Calculation of Imputed Capitalization “CAP” Rate Determination of Leverage RateDetermination Projected Investment PerformanceFinal Review of Third Party ReportsDecision

5. Post Decision/Related Contract ActivitiesFinal Loan Application and CommitmentContract Key Event AdministrationCounter NegotiationsRemoval of Applicable ConditionsPre Decision ActivitiesTenant EstoppelsTenant AnnouncementsVendor Set UpEscrow and Title Work

6. Closing of TransactionFinal Review of Transaction DocumentationProgress Review of Escrow Closure DocumentationInternal Audit- All Proration's/Fees/Transfer FundsReview and Approval of Settlement StatementNotice to Seller Removing All Conditions tot ClosingSet Closing Date

Drip, Drip, Drip

It’s not rocket science… Or is it?

8. Management and Operating Cycles

7. Closing and Post Closing ActivitiesClosing of Transaction

Post Closing Notices to TenantsFinal Management System Set Up

Vendor ContractingBanking Set Up

Establishment of Tenant FilesCompliance Letters

Assumption/Establishment of BudgetFirst Billing Statements

The Numbers of A Lifetime

I. Mortgages Paid on Time – 21,500II. Sales – ½ of a Dozen Per YearIII. Leases – 130 Per YearIV. Budgets & Rec’s - 3,600

CAP Rate & Vacancy Rate…

SO WHAT!!!

The Holy GrailIn 3 words …

The Meaning of Life;

$ Net Operating Income $

Meaningful Interpretation ofWhat was?

What is?What will be?

The Sine of the Times:

Scarcity is an Implicit guaranty

VALUE

TIME

The Value Today

The Value Tomorrow

December 2007

MK Investment Strategy

Appraisal Techniques as a Guide

I. SalesII. CostIII. Income Approaches

The Value of a Model

Pro Rata Sheet

Deficiency Sheet

Rent Sheet

Tool Sheet

Quick Sale & Leakage

The TEAM

Back to the Transaction!

Conclusion:

This is Who We Are!